Document:

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                                                                    EXHIBIT 4.1

                          SALE AND SERVICING AGREEMENT

                                      among

                   TOYOTA AUTO RECEIVABLES 2001-A OWNER TRUST,
                                   as Issuer,

                  TOYOTA MOTOR CREDIT RECEIVABLES CORPORATION,
                                   as Seller,

                                       and

                        TOYOTA MOTOR CREDIT CORPORATION,
                                   as Servicer

                           Dated as of January 1, 2001

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                                    ARTICLE I
                                   DEFINITIONS

SECTION 1.01  Definitions.........................................................     1
SECTION 1.02  Usage of Terms......................................................    22

                                   ARTICLE II
                            CONVEYANCE OF RECEIVABLES

SECTION 2.01  Conveyance of Receivables...........................................    23
SECTION 2.02  Custody of Receivables Files........................................    24
SECTION 2.03  Acceptance by Owner Trustee.........................................    25

                                   ARTICLE III
                                 THE RECEIVABLES

SECTION 3.01  Representations and Warranties of the Seller with Respect
                to the Receivables................................................    25
SECTION 3.02  Repurchase upon Breach..............................................    28
SECTION 3.03  Duties of Servicer as Custodian.....................................    29
SECTION 3.04  Instructions; Authority To Act......................................    29
SECTION 3.05  Custodian's Indemnification.........................................    30
SECTION 3.06  Effective Period and Termination....................................    30

                                   ARTICLE IV
                   ADMINISTRATION AND SERVICING OF RECEIVABLES

SECTION 4.01  Duties of Servicer..................................................    30
SECTION 4.02  Collection and Allocation of Receivable Payments....................    31
SECTION 4.03  Rebates on Full Prepayments.........................................    32
SECTION 4.04  Realization upon Receivables........................................    32
SECTION 4.05  Physical Damage Insurance...........................................    32
SECTION 4.06  Maintenance of Security Interests in Financed Vehicles..............    33
SECTION 4.07  Covenants of Servicer...............................................    33
SECTION 4.08  Purchase of Receivables upon Breach.................................    33
SECTION 4.09  Servicing Fee and Expenses..........................................    34
SECTION 4.10  Servicer's Certificate..............................................    34
SECTION 4.11  Annual Statement as to Compliance; Notice of Default................    34
SECTION 4.12  Annual Accountants' Report..........................................    35
SECTION 4.13  Access to Certain Documentation and Information Regarding
                Receivables.......................................................    35
SECTION 4.14  Appointment of Subservicer..........................................    36
SECTION 4.15  Amendments to Schedule of Receivables...............................    36
SECTION 4.16  Reports to Securityholders and Rating Agencies......................    36
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                                    ARTICLE V
                      ACCOUNTS; PAYMENTS AND DISTRIBUTIONS;
                         STATEMENTS TO SECURITYHOLDERS

SECTION 5.01  Establishment of Collection Account and Payahead Account............    36
SECTION 5.02  Collections.........................................................    38
SECTION 5.03  Application of Collections..........................................    39
SECTION 5.04  Advances; Swap Payments.............................................    40
SECTION 5.05  Additional Deposits.................................................    41
SECTION 5.06  Payments and Distributions..........................................    42
SECTION 5.07  Reserve Account.....................................................    45
SECTION 5.08  Statements to Certificateholder, Noteholders, and
                Swap Counterparty.................................................    46
SECTION 5.09  Net Deposits........................................................    47

                                   ARTICLE VI
                                   THE SELLER

SECTION 6.01  Representations of Seller...........................................    47
SECTION 6.02  Corporate Existence.................................................    48
SECTION 6.03  Liability of Seller; Indemnities....................................    49
SECTION 6.04  Merger or Consolidation of, or Assumption of the Obligations of,
                Seller............................................................    50
SECTION 6.05  Limitation on Liability of Seller and Others........................    50
SECTION 6.06  Seller May Own Certificate or Notes.................................    50

                                   ARTICLE VII
                                  THE SERVICER

SECTION 7.01  Representations of Servicer.........................................    51
SECTION 7.02  Indemnities of Servicer.............................................    52
SECTION 7.03  Merger or Consolidation of, or Assumption of the Obligations
                of, Servicer......................................................    53
SECTION 7.04  Limitation on Liability of Servicer and Others......................    54
SECTION 7.05  TMCC Not To Resign as Servicer......................................    54

                                  ARTICLE VIII
                                     DEFAULT

SECTION 8.01  Servicer Default....................................................    55
SECTION 8.02  Appointment of Successor............................................    56
SECTION 8.03  Repayment of Advances; Compensation Payable.........................    57
SECTION 8.04  Notification........................................................    57

                                   ARTICLE IX
                                   TERMINATION

SECTION 9.01  Optional Purchase of All Receivables................................    57
SECTION 9.02  Termination of the Trust Agreement..................................    59
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                                    ARTICLE X
                                  MISCELLANEOUS

SECTION 10.01  Amendment..........................................................    59
SECTION 10.02  Protection of Title to Trust.......................................    60
SECTION 10.03  Notices............................................................    62
SECTION 10.04  Assignment by the Seller or the Servicer...........................    62
SECTION 10.05  Limitations on Rights of Others....................................    62
SECTION 10.06  Severability.......................................................    62
SECTION 10.07  Separate Counterparts..............................................    62
SECTION 10.08  Headings...........................................................    63
SECTION 10.09  Governing Law......................................................    63
SECTION 10.10  Assignment by Issuer...............................................    63
SECTION 10.11  Nonpetition Covenants..............................................    63
SECTION 10.12  Limitation of Liability of Owner Trustee and Indenture Trustee.....    63

SCHEDULE A     Schedule of Receivables
EXHIBIT A      Form of Servicer's Certificate
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     SALE AND SERVICING AGREEMENT dated as of January 1, 2001, among TOYOTA AUTO
RECEIVABLES 2001-A OWNER TRUST, a Delaware business trust (the "Issuer"), TOYOTA
MOTOR CREDIT RECEIVABLES CORPORATION, a California corporation ("TMCRC" or the
"Seller"), and TOYOTA MOTOR CREDIT CORPORATION, a California corporation ("TMCC"
or the "Servicer").

     WHEREAS the Issuer desires to purchase a portfolio of receivables arising
in connection with retail installment sales contracts secured by new or used
automobiles and light duty trucks generated by Toyota Motor Credit Corporation
in the ordinary course of business and sold to the Seller;

     WHEREAS the Seller is willing to sell such receivables to the Issuer; and

     WHEREAS the Servicer is willing to service such receivables;

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

                                   ARTICLE I

                                   DEFINITIONS

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

          "ACTUAL PAYMENT" means, with respect to a Receivable and a Collection
Period, all payments received by the Servicer from or for the account of the
related Obligor on such Receivable during such Collection Period (and, in the
case of the first Collection Period, all payments received by the Servicer from
or for the account of such Obligor since the Cutoff Date through the last day of
such Collection Period), net of any Supplemental Servicing Fees attributable to
such Receivable. Actual Payments do not include Applied Payments Ahead.

          "ACTUARIAL RECEIVABLE" means any Receivable which provides for the
allocation of payments according to the "actuarial" method.

          "ADMINISTRATIVE PURCHASE PAYMENT" means, with respect to a Payment
Date and to (1) an Administrative Receivable which is a Precomputed Receivable
purchased by the Servicer as of the close of business on the last day of the
related Collection Period, (a) the sum of (i) all Scheduled Payments on such
Receivable due after the last day of such Collection Period, (ii) an amount
equal to any reimbursement of Outstanding Advances made pursuant to Section
5.04(c) with respect to such Receivable and (iii) all past due Scheduled
Payments for which an Advance has not been made, minus (b) all Payments Ahead
with respect to such Receivable then on deposit in the Payahead Account and the
Rebate, if any, paid to the Obligor on a Precomputed Receivable on or before the
date of such purchase and (2) an Administrative Receivable which is a Simple
Interest Receivable purchased by the Servicer during the related Collection
Period, the sum of (a) the unpaid Principal Balance owed by the Obligor in
respect of such Receivable plus

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(b) interest on such unpaid Principal Balance at a rate equal to 6.80% plus the
Servicing Fee Rate to the last day of the related Collection Period.

          "ADMINISTRATION AGREEMENT" means the Administration Agreement dated as
of January 1, 2001, among the Administrator, the Issuer and the Indenture
Trustee.

          "ADMINISTRATIVE RECEIVABLE" means a Receivable which the Servicer is
required to purchase pursuant to Section 3.02 or 4.08 or which the Servicer has
elected to purchase pursuant to Section 9.01.

          "ADMINISTRATOR" means TMCC, or any successor Administrator under the
Administration Agreement.

          "ADVANCE" means a Precomputed Advance or Simple Interest Advance.

          "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 term "controlling" and
"controlled" have meanings correlative to the foregoing.

          "AGGREGATE NET LOSSES" means, with respect to a Collection Period, an
amount equal to the aggregate Principal Balance of all Receivables that became
Defaulted Receivables during such Collection Period minus the sum of (x) all Net
Liquidation Proceeds collected during such Collection Period with respect to
Defaulted Receivables and (y) all amounts received during such Collection Period
in respect of the Receivables liquidated in prior Collection Periods net of any
Liquidation Expenses incurred during such Collection Period in connection with
the recovery of such amounts.

          "AGREEMENT" means this Sale and Servicing Agreement among the Toyota
Auto Receivables 2001-A Owner Trust, as Issuer, TMCRC, as seller, and TMCC, as
servicer, as the same may be amended or supplemented from time to time.

          "AMOUNT FINANCED" in respect of a Receivable means the aggregate
amount advanced under such Receivable toward the purchase price of the related
Financed Vehicle and any related costs, including but not limited to
accessories, insurance premiums, service and warranty contracts and other items
customarily financed as part of retail automobile and light duty truck
installment sale contracts.

          "ANNUAL PERCENTAGE RATE" or "APR" of a Receivable means the annual
rate of finance charges specified in such Receivable.

          "APPLIED PAYMENT AHEAD" means, with respect to a Precomputed
Receivable and a Collection Period as to which (a) the Actual Payment is less
than the Scheduled Payment and (b) a Deferred Prepayment is on deposit in the
Payahead Account, an amount equal to the lesser of (i) such Deferred Prepayment
and (ii) the amount by which the Scheduled Payment exceeds the Actual Payment.

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          "AVAILABLE COLLECTIONS" means, with respect to any Payment Date, the
total of the following amounts received by the Servicer on or in respect of the
Receivables during (or for application with respect to) the related Collection
Period (in the case of the Precomputed Receivables, computed in accordance with
the actuarial method and in the case of the Simple Interest Receivables,
computed in accordance with the simple interest method):

          (a) the sum of all (i) collections on or in respect of all Receivables
other than Defaulted Receivables (including Applied Payments Ahead, but
otherwise excluding Payments Ahead), (ii) Net Liquidation Proceeds, (iii)
Advances made by the Servicer, (iv) all Warranty Purchase Payments, (v) all Swap
Payments Incoming, (vi) all Swap Termination Payments made by the Swap
Counterparty to the Issuer and (vii) all Administrative Purchase Payments, less

          (b) the sum of all (i) amounts received on or in respect of a
particular Receivable (other than a Defaulted Receivable) to the extent of the
aggregate Outstanding Advances in respect of such Receivable, (ii) Net
Liquidation Proceeds with respect to a particular Receivable to the extent of
the aggregate Outstanding Advances in respect of such Receivable, (iii)
recoveries from collections on other Receivables to the extent of Advances made
by the Servicer on a particular Receivable that the Servicer has determined are
Nonrecoverable Advances, (iv) late fees, extension fees and other administrative
fees and expenses or similar charges (which are payable to the Servicer as
Supplemental Servicing Fees) collected by the Servicer, (v) all Swap Payments
Outgoing, (vi) all Swap Termination Payments made by the Issuer to the Swap
Counterparty and (vii) Rebates.

          "BASIC DOCUMENTS" means the Receivables Purchase Agreement, the Trust
Agreement, the Certificate of Trust, this Sale and Servicing Agreement, the
Indenture, the Administration Agreement, the Securities Account Control
Agreement, the Note Depository Agreement and the other documents and
certificates delivered in connection herewith and therewith.

          "BASIC SERVICING FEE" means the fee payable to the Servicer on each
Payment Date, calculated pursuant to Section 4.09, for services rendered during
the related Collection Period, which shall be equal to one-twelfth of the
Servicing Fee Rate multiplied by the Pool Balance as of the first day of the
related Collection Period or, with respect to the first Payment Date, the
Original Pool Balance.

          "BOOK-ENTRY NOTES" means beneficial interests in Notes, ownership and
transfer of which shall be made through book entries by a Clearing Agency as
described in the Trust Agreement and the Indenture, respectively.

          "BUSINESS DAY" means any day other than a Saturday, a Sunday or a day
on which banking institutions in New York, New York, San Francisco, California,
or Chicago Illinois are authorized or obligated by law, executive order or
governmental decree to be closed.

          "CERTIFICATE" has the meaning assigned in the Trust Agreement.

          "CERTIFICATEHOLDER" has the meaning assigned to such term in the Trust
Agreement.

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          "CHARGE-OFF RATE" means, with respect to a Collection Period, the
percentage equivalent of a fraction, the numerator of which is the Aggregate Net
Losses for such Collection Period, and the denominator of which is the average
of (i) the Pool Balance on the last day of the Collection Period immediately
preceding such Collection Period and (ii) the Pool Balance on the last day of
such Collection Period; such quotient is then multiplied by twelve to arrive at
an annualized percentage.

          "CLASS" means any one of the classes of Notes.

          "CLASS A NOTE BALANCE" as of any date of determination, means the
aggregate of the outstanding principal balances of the Class A-1 Notes, Class
A-2 Notes, Class A-3 Notes and Class A-4 Notes.

          "CLASS A-1 FINAL SCHEDULED PAYMENT DATE" means the Payment Date in
January 2002.

          "CLASS A-1 INITIAL PRINCIPAL BALANCE" means $317,048,000.

          "CLASS A-1 INTEREST CARRYOVER SHORTFALL" means, with respect to any
Payment Date, the excess, if any, of (x) the Class A-1 Interest Distributable
Amount for such Payment Date and any outstanding Class A-1 Interest Carryover
Shortfall from the immediately preceding Payment Date (together with interest on
such outstanding Class A-1 Interest Carryover Shortfall at the Class A-1 Rate,
to the extent lawful, calculated on the same basis as interest on the Class A-1
Notes for the same period), over (y) the amount of interest distributed to the
Class A-1 Noteholders on such Payment Date.

          "CLASS A-1 INTEREST DISTRIBUTABLE AMOUNT" means the amount of interest
accrued during the related Interest Period (calculated on the basis of the
actual number of days in such Interest Period and a year assumed to consist of
360 days) on the Class A-1 Principal Balance as of the immediately preceding
Payment Date (after giving effect to payments of principal made on such
immediately preceding Payment Date) at the Class A-1 Rate or, in the case of the
first Payment Date, on the Class A-1 Initial Principal Balance.

          "CLASS A-1 NOTE" means any of the 5.613% Asset Backed Notes, Class
A-1, issued under the Indenture.

          "CLASS A-1 NOTEHOLDER" means any Person in whose name a Class A-1 Note
is registered in the Note Register.

          "CLASS A-1 PRINCIPAL BALANCE" as of any date means the Class A-1
Initial Principal Balance less all amounts paid to the holders of Class A-1
Notes in respect of principal pursuant to Section 5.06 hereof.

          "CLASS A-1 RATE" means 5.613% per annum.

          "CLASS A-2 FINAL SCHEDULED PAYMENT DATE" means the Payment Date in
December 2003.

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          "CLASS A-2 INITIAL PRINCIPAL BALANCE" means $440,000,000.

          "CLASS A-2 INTEREST CARRYOVER SHORTFALL" means, with respect to any
Payment Date, the excess, if any, of (x) the Class A-2 Interest Distributable
Amount for such Payment Date and any outstanding Class A-2 Interest Carryover
Shortfall from the immediately preceding Payment Date (together with interest on
such outstanding Class A-2 Interest Carryover Shortfall at the Class A-2 Rate,
to the extent lawful, calculated on the same basis as interest on the Class A-2
Notes for the same period), over (y) the amount of interest distributed to the
Class A-2 Noteholders on such Payment Date.

          "CLASS A-2 INTEREST DISTRIBUTABLE AMOUNT" means the amount of interest
accrued during the related Interest Period (calculated on the basis of such
Interest Period being assumed to consist of 30 days and a year assumed to
consist of 360 days) on the Class A-2 Principal Balance as of the immediately
preceding Payment Date (after giving effect to payments of principal made on
such immediately preceding Payment Date) at the Class A-2 Rate or, in the case
of the first Payment Date, on the Class A-2 Initial Principal Balance.

          "CLASS A-2 NOTE" means any of the 5.380% Asset Backed Notes, Class
A-2, issued under the Indenture.

          "CLASS A-2 NOTEHOLDER" means any Person in whose name a Class A-2 Note
is registered in the Note Register.

          "CLASS A-2 PRINCIPAL BALANCE" as of any date means the Class A-2
Initial Principal Balance less all amounts paid to the holders of Class A-2
Notes in respect of principal pursuant to Section 5.06 hereof.

          "CLASS A-2 RATE" means 5.380% per annum.

          "CLASS A-3 FINAL SCHEDULED PAYMENT DATE" means the Payment Date in
March 2005.

          "CLASS A-3 INITIAL PRINCIPAL BALANCE" means $440,000,000.

          "CLASS A-3 INTEREST CARRYOVER SHORTFALL" means, with respect to any
Payment Date, the excess, if any, of (x) the Class A-3 Interest Distributable
Amount for such Payment Date and any outstanding Class A-3 Interest Carryover
Shortfall from the immediately preceding Payment Date (together with interest on
such outstanding Class A-3 Interest Carryover Shortfall at the Class A-3 Rate,
to the extent lawful, calculated on the same basis as interest on the Class A-3
Notes for the same period), over (y) the amount of interest distributed to the
Class A-3 Noteholders on such Payment Date.

          "CLASS A-3 INTEREST DISTRIBUTABLE AMOUNT" means the amount of
interest accrued during the related Interest Period (calculated on the basis
of the actual number of days in such Interest Period and a year assumed to
consist of 360 days) on the Class A-3 Principal Balance as of the immediately
preceding Payment Date (after giving effect to payments of principal made on
such immediately preceding Payment Date) at the Class A-3 Rate or, in the
case of the first Payment Date, on the Class A-3 Initial Principal Balance.

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          "CLASS A-3 NOTE" means any of the Floating Rate Asset Backed Notes,
Class A-3, issued under the Indenture.

          "CLASS A-3 NOTEHOLDER" means any Person in whose name a Class A-3 Note
is registered in the Note Register.

          "CLASS A-3 NOTIONAL BALANCE" means the Class A-3 Principal Balance as
of the first day of the applicable Interest Period.

          "CLASS A-3 NOTIONAL FIXED RATE" means 5.432%.

          "CLASS A-3 PRINCIPAL BALANCE" as of any date means the Class A-3
Initial Principal Balance less all amounts paid to the holders of Class A-3
Notes in respect of principal pursuant to Section 5.06 hereof.

          "CLASS A-3 RATE" means, with respect to any Interest Period, one-month
LIBOR plus 0.08%.

          "CLASS A-4 FINAL SCHEDULED PAYMENT DATE" means the Payment Date in
September 2007.

          "CLASS A-4 INITIAL PRINCIPAL BALANCE" means $306,452,000.

          "CLASS A-4 INTEREST CARRYOVER SHORTFALL" means, with respect to any
Payment Date, the excess, if any, of (x) the Class A-4 Interest Distributable
Amount for such Payment Date and any outstanding Class A-4 Interest Carryover
Shortfall from the immediately preceding Payment Date (together with interest on
such outstanding Class A-4 Interest Carryover Shortfall at the Class A-4 Rate,
to the extent lawful, calculated on the same basis as interest on the Class A-4
Notes for the same period), over (y) the amount of interest distributed to the
Class A-4 Noteholders on such Payment Date.

          "CLASS A-4 INTEREST DISTRIBUTABLE AMOUNT" means the amount of interest
accrued during the related Interest Period (calculated on the basis of the
actual number of days in such Interest Period and a year assumed to consist of
360 days) on the Class A-4 Principal Balance as of the immediately preceding
Payment Date (after giving effect to payments of principal made on such
immediately preceding Payment Date) at the Class A-4 Rate or, in the case of the
first Payment Date, on the Class A-4 Initial Principal Balance.

          "CLASS A-4 NOTE" means any of the Floating Rate Asset Backed Notes,
Class A-4, issued under the Indenture.

          "CLASS A-4 NOTEHOLDER" means any Person in whose name a Class A-4 Note
is registered in the Note Register.

          "CLASS A-4 NOTIONAL BALANCE" means the Class A-4 Principal Balance as
of the first day of the applicable Interest Period.

          "CLASS A-4 NOTIONAL FIXED RATE" means 5.580%.

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          "CLASS A-4 PRINCIPAL BALANCE" as of any date means the Class A-4
Initial Principal Balance less all amounts paid to the holders of Class A-4
Notes in respect of principal pursuant to Section 5.06 hereof.

          "CLASS A-4 RATE" means, with respect to any Interest Period, one-month
LIBOR plus 0.11%.

          "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 January 25, 2001.

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

          "COLLECTION ACCOUNT" means the account or accounts designated as such
and established and maintained pursuant to Section 5.01.

          "COLLECTION PERIOD" means, with respect to any Payment Date, the
calendar month immediately preceding the month in which such Payment Date
occurs.

          "COMMISSION" means the Securities and Exchange Commission, and any
successor thereto.

          "CURRENT RECEIVABLE" means each Receivable that is not a Defaulted
Receivable or a Liquidated Receivable.

          "CUTOFF DATE" means January 1, 2001.

          "DEALER" means the dealer of automobile and/or light duty trucks who
sold a Financed Vehicle and who originated and assigned the Receivable relating
to such Financed Vehicle to TMCC under an existing agreement between such dealer
and TMCC.

          "DEALER RECOURSE" means, with respect to a Receivable, all recourse
rights against the Dealer which originated the Receivable, and any successor
Dealer.

          "DEFAULTED RECEIVABLE" means a Receivable (other than an
Administrative Receivable or a Warranty Receivable) as to which (i) all or any
part of a Scheduled Payment is 150 or more days past due and the Servicer has
not repossessed the related Financed Vehicle, or (ii) the Servicer has, in
accordance with its customary servicing procedures, determined that eventual
payment in full is unlikely and either repossessed and liquidated the related
Financed Vehicle or repossessed and held the related Financed Vehicle in its
repossession inventory for 90 days, whichever occurs first.

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          "DEFINITIVE NOTES" shall have the meaning ascribed thereto in the
Indenture.

          "DEFERRED PREPAYMENT" means, with respect to a Precomputed Receivable
and a Collection Period, the aggregate amount, if any, of Payments Ahead
remitted to the Servicer in respect of such Receivable during one or more prior
Collection Periods and currently held by the Servicer or in the Payahead
Account.

          "DELAWARE TRUSTEE" means the Person acting as Delaware Co-Trustee
under the Trust Agreement, its successors in interest and any successor Delaware
co-trustee under the Trust Agreement.

          "DELINQUENCY PERCENTAGE" means, with respect to a Collection Period,
the percentage equivalent of a fraction, the numerator of which is the number of
(i) all outstanding Receivables 61 days or more delinquent (after taking into
account permitted extensions) as of the last day of such Collection Period
(excluding Receivables as to which the Financed Vehicle has been liquidated
during that Collection Period), determined in accordance with the Servicer's
normal practices, plus (ii) all repossessed Financed Vehicles that have not been
liquidated (to the extent the related Receivable is not otherwise reflected in
clause (i) above), and the denominator of which is the aggregate number of
Current Receivables on the last day of such Collection Period.

          "DEPOSITOR" means the Seller in its capacity as Depositor under the
Trust Agreement.

          "DETERMINATION DATE" means, with respect to any Payment Date, the
second Business Day preceding such Payment Date.

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

          "ELIGIBLE DEPOSIT ACCOUNT" means either (a) a segregated account with
an Eligible Institution or (b) a segregated trust account with the corporate
trust department of a depository institution 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 shall have a credit rating from
each Rating Agency in one of its generic rating categories that signifies
investment grade.

          "ELIGIBLE INSTITUTION" means (a) the corporate trust department of the
Indenture Trustee or the Owner Trustee or (b) a depository institution 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), which
(i) has either (A) a long-term unsecured debt rating of "AA-" or better by
Standard & Poor's and "Aa3" or better by Moody's or (B) an account or accounts
in which funds will be held therein for 30 days or less which are maintained
with a depository institution or trust company, the short-term unsecured debt
obligations of which are rated "A-1+" or better by Standard & Poor's or if not
rated by Standard & Poor's then otherwise approved by Standard & Poor's and
rated "P-1" or better by Moody's, or if not rated by Moody's then otherwise
approved by Moody's, and (ii) whose deposits are insured by the FDIC. If so

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qualified, the Indenture Trustee or the Owner Trustee may be considered an
Eligible Institution for the purposes of clause (b) of this definition.

          "ELIGIBLE INVESTMENTS" means, at any time, any one or more of the
following obligations and securities:

     (a) obligations of, and obligations fully guaranteed as to timely payment
of principal and interest by, the United States or any agency thereof, provided
such obligations are backed by the full faith and credit of the United States;

     (b) general obligations of or obligations guaranteed by FNMA, or (ii) any
state of the United States, the District of Columbia or the Commonwealth of
Puerto Rico then rated the highest available credit rating of each Rating Agency
for such obligations;

     (c) certificates of deposit issued by any depository institution or trust
company (including the Indenture Trustee) incorporated under the laws of the
United States or of any state thereof, the District of Columbia or the
Commonwealth of Puerto Rico and subject to supervision and examination by
banking authorities of one or more of such jurisdictions, provided that the
short-term unsecured debt obligations of such depository institution or trust
company are then rated the highest available rating of each Rating Agency for
such obligations;

     (d) certificates of deposit, demand or time deposits of, bankers'
acceptances issued by, or federal funds sold by, any depository institution or
trust company (including the Indenture Trustee) incorporated under the laws of
the United States or any State and subject to supervision and examination by
federal and/or State banking authorities and the deposits of which are fully
insured by the Federal Deposit Insurance Corporation, so long as at the time of
such investment or contractual commitment providing for such investment either
such depository institution or trust company is an Eligible Institution (or if
such investment will mature after more than one month, the long-term, unsecured
debt of the issuer has the highest available rating from each Rating Agency) or
as to which the Indenture Trustee shall have received a letter from each Rating
Agency to the effect that such investment would not result in the qualification,
downgrading or withdrawal of the ratings then assigned to any Notes issued by
the Issuer;

     (e) certificates of deposit issued by any bank, trust company, savings bank
or other savings institution that is an Eligible Institution and is fully
insured by the FDIC (or if such investment will mature after more than one
month, the long-term, unsecured debt of the issuer has the highest available
rating from each Rating Agency);

     (f) repurchase obligations held by the Indenture Trustee that are
acceptable to the Indenture Trustee with respect to any security described in
clauses (a), (b) or (g) hereof or any other security issued or guaranteed by any
other agency or instrumentality of the United States, in either case entered
into with a federal agency or a depository institution or trust company (acting
as principal) described in clause (d) above (including the Indenture Trustee);
PROVIDED, HOWEVER, that repurchase obligations entered into with any particular
depository institution or trust company (including the Indenture Trustee) will
not be Eligible Investments to the extent that the aggregate principal amount of
such repurchase obligations with such depository institution or trust company
held by the Indenture Trustee on behalf of the Noteholders or the

                                       9
<PAGE>

Seller, as the case may be, shall exceed 10% of either the Pool Balance or of
the principal balance of all the face amount of all Eligible Investments so held
thereby;

     (g) securities bearing interest or sold at a discount issued by any
corporation incorporated under the laws of the United States or any State so
long as at the time of such investment or contractual commitment providing for
such investment (i) the long-term, unsecured debt, or if such securities are
commercial paper, the short-term unsecured debt, of such corporation has the
highest available rating from each Rating Agency or (ii) the Indenture Trustee
shall have received a letter from each Rating Agency to the effect that such
investment would not result in the qualification, downgrading or withdrawal of
the ratings then assigned to any of the Notes;

     (h) money market funds so long as such funds are rated "Aaa" by Moody's (so
long as Moody's is a Rating Agency) and "AAAm" by Standard & Poor's (so long as
Standard & Poor's is a Rating Agency), including any such fund for which the
Indenture Trustee or an Affiliate thereof serves as an investment advisor,
administrator, shareholder servicing agent and/or custodian or subcustodian, and
notwithstanding that (i) such Person charges and collects fees and expenses from
such funds for services rendered, (ii) such Person charges and collects fees and
expenses for services rendered pursuant to the Trust Agreement, the Indenture or
the Securities Account Control Agreement and (iii) services performed for such
funds and pursuant to any such agreement may converge at any time. Each of the
Seller and the Servicer hereby specifically authorizes the Indenture Trustee,
Owner Trustee, Securities Intermediary or an Affiliate thereof to charge and
collect all fees and expenses from such funds for services rendered to such
funds, in addition to any fees and expenses such Person may charge and collect
for services rendered pursuant to any such Agreement; and

     (i) such other investments acceptable to each Rating Agency (as approved in
writing by each Rating Agency) as will not result in the qualification,
downgrading or withdrawal of the ratings then assigned by such Rating Agency to
any of the Notes; provided that each of the foregoing investments shall mature
no later than the Payment Date next succeeding such investment, and shall be
required to be held to such maturity.

          None of the foregoing will be considered a Eligible Investment if:

               (1) it constitutes a certificated security, bankers' acceptance,
     commercial paper, negotiable certificate of deposit or other obligation
     that constitutes "financial assets" within the meaning of Section
     8-102(a)(9)(c) of the UCC unless a security entitlement with respect to
     such Eligible Investment has been created, in favor of the Indenture
     Trustee or Owner Trustee, as appropriate, in accordance with Section
     8-501(b) of the UCC and the related securities intermediary has agreed not
     to comply with entitlement orders of any secured party other than the
     Indenture Trustee, Seller or Owner Trustee, as the case may be; or

               (2) it constitutes a book-entry security held through the Federal
     Reserve System pursuant to federal book-entry regulations, unless, in
     accordance with applicable law, (A) a book-entry registration thereof is
     made to an appropriate book-entry account maintained with a Federal Reserve
     Bank by the Indenture Trustee, Securities

                                       10
<PAGE>

     Intermediary or Owner Trustee, as appropriate, or by a custodian therefor,
     (B) a deposit advice or other written confirmation of such book-entry
     registration is issued to such Person, (C) any such custodian makes entries
     in its books and records identifying that such book-entry security is held
     through the Federal Reserve System pursuant to federal book-entry
     regulations and belongs to such trustee and indicating that such custodian
     holds such Eligible Investment solely as agent for the Indenture Trustee,
     Securities Intermediary or Owner Trustee, as appropriate, (D) the Indenture
     Trustee, Securities Intermediary or Owner Trustee, as appropriate, makes
     entries in its books and records establishing that it holds such security
     solely in such capacity, and (E) any additional or alternative procedures
     as may hereafter become necessary to effect complete transfer of ownership
     thereof to such trustee are satisfied, consistent with changes in
     applicable law or regulations or the interpretation thereof.

          Notwithstanding anything to the contrary contained in this definition,
no Eligible Investment may be purchased at a premium and no Eligible Investment
shall be an "interest only" instrument.

          For purposes of this definition, any reference to the highest
available credit rating of an obligation shall mean the highest available credit
rating for such obligation (excluding any "+" signs associated with such
rating), or such lower credit rating (as approved in writing by each Rating
Agency) as will not result in the qualification, downgrading or withdrawal of
the rating then assigned by such Rating Agency to any of the Notes. Also for
purposes of this definition, any reference to a Rating Agency refers only to a
Rating Agency that has, at the request of TMCC, rated the Notes.

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

          "EVENT OF DEFAULT" shall have the meaning specified in the Indenture.

          "EXCESS PAYMENT" means, with respect to a Receivable and a Collection
Period, the amount, if any, by which the Actual Payment exceeds the sum of (i)
the Scheduled Payment, and (ii) any Overdue Payment.

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

          "FDIC" means the Federal Deposit Insurance Corporation, and its
successors.

          "FNMA" means the Federal National Mortgage Association, and its
successors.

          "FINANCED VEHICLE" means, with respect to a Receivable, the related
automobile or light duty truck, as the case may be, together with all accessions
thereto, securing the related Obligor's indebtedness under such Receivable.

          "HOLDER" or "SECURITYHOLDER" means the registered holder of a Note as
evidenced by the Note Register or the Certificateholder, as the case may be,
except that, solely for the purposes of giving certain consents, waivers,
requests or demands pursuant to the Trust Agreement or the Indenture, the
interest evidenced by the Certificate or any Note registered in

                                       11
<PAGE>

the name of TMCRC or TMCC, or any Person actually known to a Trust Officer of
the Owner Trustee or the Indenture Trustee to be controlling, controlled by or
under common control with TMCRC or TMCC, shall not be taken into account in
determining whether the requisite percentage necessary to effect any such
consent, waiver, request or demand shall have been obtained.

          "INDENTURE" means the Indenture dated as of January 1, 2001, between
the Issuer and the Indenture Trustee.

          "INDENTURE TRUSTEE" means the Person acting as Indenture Trustee under

the Indenture, its successors in interest and any successor trustee under the
Indenture.

          "INDEPENDENT DIRECTOR" means a director of the Seller who is not (i) a
director, officer or employee of any Affiliate of the Seller, (ii) a natural
person related to any director or officer of any Affiliate of the Seller, (iii)
a holder (directly or indirectly) of more than 10% of any voting securities of
any Affiliate of the Seller, or (iv) a natural person related to a holder
(directly or indirectly) of more than 10% of any voting securities of any
Affiliate of the Seller.

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

          "INSURANCE POLICY" means, with respect to a Receivable, an insurance
policy covering physical damage, credit life, credit disability, theft,
mechanical breakdown or similar event relating to the related Financed Vehicle
or Obligor.

          "INTEREST DETERMINATION DATE" means the second London Banking Day
prior to the Interest Reset Date for the related Interest Period.

          "INTEREST PERIOD" with respect to any Payment Date and (i) the Class

A-1 Notes, Class A-3 Notes and the Class A-4 Notes, means the period from, and
including, the preceding Payment Date (or, in the case of the initial Interest
Period, from and including the Closing Date) to, but excluding, such Payment
Date; and (ii) in the case of the Class A-2 Notes, means the period from, and
including, the 15th day of the preceding calendar month (or, in the case of the

                                       12
<PAGE>

initial Interest Period, from and including the Closing Date) to, but excluding,
the 15th day of the month in which such Payment Date occurs.

          "INTEREST RATE SWAP AGREEMENT" means 1992 ISDA Master Agreement dated
as of January 25, 2001, including all schedules and confirmations thereto,
between the Issuer and the Swap Counterparty, as the same may be amended,
supplemented, renewed, extended or replaced from time to time.

          "INTEREST RESET DATE" means, with respect to the Class A-3 Notes and
the Class A-4 Notes, the first day of the applicable Interest Period.

          "INVESTMENT COMPANY ACT" means the Investment Company Act of 1940, as
amended.

          "ISSUER" means Toyota Auto Receivables 2001-A Owner Trust.

          "LIBOR" means the rate for deposits in U.S. dollars for a one-month
period which appears on the Telerate Page 3750 as of 11:00 a.m., London time, on
the Interest Determination Date; provided that, the following procedures will be
followed if LIBOR cannot be determined as described above:

          (a) With respect to an Interest Determination Date on which no rate
appears on Telerate Page 3750, LIBOR for the applicable Interest Determination
Date will be the rate calculated by the Calculation Agent (as defined in the
Interest Rate Swap Agreement) as the arithmetic mean of at least two quotations
obtained by the Calculation Agent after requesting the principal London offices
of each of four major reference banks in the London interbank market, which may
include the Calculation Agent and its affiliates, as selected by the Calculation
Agent, to provide the Calculation Agent with its offered quotation for deposits
in U.S. dollars for a one-month period, commencing on the second London Banking
Day immediately following the applicable Interest Determination Date, to prime
banks in the London interbank market at approximately 11:00 a.m., London time,
on such Interest Determination Date and in a principal amount that is
representative for a single transaction in U.S. dollars in that market at that
time. If at least two such quotations are provided, LIBOR determined on the
applicable Interest Determination Date will be the arithmetic mean of the
quotations.

          (b) If fewer than two quotations referred to in clause (a) above are
provided, LIBOR determined on the applicable Interest Determination Date will be
the rate calculated by the Calculation Agent as the arithmetic mean of the rates
quoted at approximately 11:00 a.m. in New York on the applicable Interest
Determination Date by three major banks, which may include the Calculation Agent
and its affiliates, in New York, selected by the Calculation Agent for loans in
U.S. dollars to leading European banks, having a maturity of one-month and in a
principal amount that is representative for a single transaction in U.S. dollars
in that market at that time.

          (c) If the banks so selected by the Calculation Agent are not quoting
as mentioned in clause (b) above, LIBOR for the applicable Interest
Determination Date will be LIBOR in effect on the applicable Interest
Determination Date.

                                       13
<PAGE>

          "LIEN" means any security interest, lien, charge, pledge, equity or
encumbrance of any kind other than tax liens, mechanics' liens and any liens
that attach to a Receivable or any property, as the context may require, by
operation of law.

          "LIQUIDATED RECEIVABLE" means a Receivable that (i) has been the
subject of a Prepayment in full, or (ii) has been paid in full or as to which
the Servicer has determined that the final amounts in respect of such payment
have been paid with respect to a Defaulted Receivable, regardless of whether all
or any part of such payment has been made by the Obligor under such Receivable,
the Seller pursuant to this Agreement, the Servicer pursuant to this Agreement
or pursuant to the Receivables Purchase Agreement, an insurer pursuant to an
Insurance Policy or otherwise.

          "LIQUIDATION EXPENSES" means, with respect to a Defaulted Receivable,
the amount charged by the Servicer, in accordance with its customary servicing
procedures, to or for its account for repossessing, refurbishing and disposing
of the related Financed Vehicle and other out-of-pocket costs related to such
liquidation.

          "LIQUIDATION PROCEEDS" means, with respect to a Defaulted Receivable,
all amounts realized with respect to such Receivable from whatever sources
(including, without limitation, proceeds of any Insurance Policy), net of
amounts that are required by law or such Receivable to be refunded to the
related Obligor.

          "LONDON BANKING DAY" means any day on which commercial banks in London
are open for general business (including dealing in foreign exchange and foreign
currency deposits).

          "MONTHLY REMITTANCE CONDITIONS" means, collectively, (i) TMCC is the
Servicer, (ii) either (a) TMCC's short-term unsecured debt is rated P-1 by
Moody's and A-1 by Standard & Poor's (so long as Moody's and Standard & Poor's
are Rating Agencies), or (b) certain arrangements are made that are acceptable
to the Rating Agencies and (iii) no Event of Default or Servicer Default shall
have occurred and be continuing (unless waived by the appropriate Noteholders).

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

          "NET LIQUIDATION PROCEEDS" means, with respect to a Defaulted
Receivable, Liquidation Proceeds less Liquidation Expenses.

          "NONRECOVERABLE ADVANCE" means any Outstanding Advance as to which the
Servicer determines that any recovery from payments made on or with respect to
such Receivable is unlikely; provided that the Servicer cannot deem any
Outstanding Advance made at the option of the Servicer pursuant to Section 4.02
to be a Nonrecoverable Advance unless it delivers to the Indenture Trustee and
Owner Trustee an Officer's Certificate to the effect that such Outstanding
Advance, when made, was reasonably likely to be reimbursed from collections in
respect of interest on the related Receivable representing interest accrued on
such Receivable at the related APR less the Servicing Fee Rate.

                                       14
<PAGE>

          "NOTE" means a Class A-1 Note, a Class A-2 Note, a Class A-3 Note or a
     Class A-4 Note.

          "NOTE DEPOSITORY AGREEMENT" has the meaning assigned in the Indenture.

          "NOTEHOLDER" means any Holder of a Note.

          "NOTE OWNER" has the meaning assigned in the Indenture.

          "NOTE POOL FACTOR" means, with respect to each Class of Notes as of
the close of business on any Payment Date, a seven-digit decimal figure equal to
the outstanding principal balance of such Class of Notes (after giving effect to
any reductions thereof to be made on such Payment Date) divided by the original
outstanding principal balance of such Class of Notes. The Note Pool Factor for
each Class of Notes will be 1.0000000 as of the Closing Date; thereafter, the
related Note Pool Factor will decline to reflect reductions in the outstanding
principal balance of such Class of Notes.

          "NOTE REGISTER" means the register maintained by the Indenture Trustee
pursuant to the Indenture recording the name of each registered Holder of a
Note.

          "OBLIGOR" on a Receivable means the purchaser or co-purchasers of the
related Financed Vehicle purchased in part or in whole by the execution and
delivery of such Receivable or any other Person who owes or may be liable for
payments under such Receivable.

          "OFFICER'S CERTIFICATE" means a certificate signed by the President,
any Vice President, the chief financial officer, the chief accounting officer,
the Treasurer or any Assistant Treasurer, or the Secretary or any Assistant
Secretary of the Issuer, the Seller or the Servicer, as the case may be.

          "OPINION OF COUNSEL" means one or more written opinions of counsel who
may, except as otherwise provided herein, be an employee of or counsel to the
Issuer, the Seller or the Servicer, which counsel shall be acceptable to the
Indenture Trustee, the Owner Trustee or the Rating Agencies, as the case may be.

          "OPTIONAL PURCHASE PRICE" means an amount equal to the aggregate
Administrative Purchase Payments for the Receivables (including Receivables that
became Defaulted Receivables in the Collection Period preceding the Payment Date
on which that purchase is effected), plus the appraised value of any other
property held by the Trust, such value to be determined by an appraiser mutually
agreed upon by the Servicer, the Owner Trustee and the Indenture Trustee, and
shall succeed to all interests in and to the Trust (less liquidated expenses);
PROVIDED, HOWEVER, that the Optional Purchase Price shall be equal to or greater
than the Outstanding Amount plus all accrued and unpaid interest on each Class
of Notes (including, without duplication, any Class A-1 Interest Carryover
Shortfall, Class A-2 Interest Carryover Shortfall, Class A-3 Interest Carryover
Shortfall or Class A-4 Interest Carryover Shortfall) through the Payment Date on
which the Owner Trust Estate is to be purchased by the Servicer, or successor to
the Servicer plus any amounts payable by the Issuer to the Swap Counterparty
under the Interest Rate Swap Agreement.

                                       15

<PAGE>

          "OPTIONAL PURCHASE PERCENTAGE" means 10%.

          "OUTSTANDING ADVANCES" means, with respect to a Receivable and the
last day of a Collection Period, the sum of all Advances made as of or prior to
such date, minus all payments or collections as of or prior to such date which
are specified in Section 5.04(b) as applied to reimburse all unpaid Advances
with respect to such Receivable.

          "OUTSTANDING AMOUNT" means the aggregate principal amount of all
Notes, or, if indicated by the context, all Notes of any Class, outstanding at
the date of determination.

          "OVERDUE PAYMENT" means, with respect to any Receivable (other than an
Administrative Receivable or a Warranty Receivable), payments made by or on
behalf of the Obligor which are not Supplemental Servicing Fees and therefor
shall be applied first to reimburse the Servicer for Outstanding Advances made
with respect to such Receivable pursuant to Section 5.03(a).

          "OWNER TRUST ESTATE" means all right, title and interest of the Trust
in and to the property and rights assigned to the Trust pursuant to Article II
of this Agreement, all funds on deposit from time to time in the accounts
created pursuant to Section 5.01 of this Agreement (excluding any net investment
income with respect to amounts held in such accounts) and all other property of
the Trust from time to time, including any rights of the Owner Trustee and the
Trust pursuant to this Agreement and the Administration Agreement, and as
assignee of the rights and interests of the Depositor under the Receivables
Purchase Agreement.

          "OWNER TRUSTEE" means the Person acting as Owner Trustee under the
Trust Agreement, its successors in interest and any successor owner trustee
under the Trust Agreement.

          "PAYAHEAD ACCOUNT" means the account or accounts designated as such
and established and maintained pursuant to Section 5.01.

          "PAYMENT AHEAD" means, with respect to a Precomputed Receivable and a
Collection Period, any Excess Payment not representing prepayment in full of
such Precomputed Receivable which the Servicer, in accordance with its customary
servicing practices, will apply towards the payment of Scheduled Payments in one
or more future Collection Periods.

          "PAYMENT DATE" means, with respect to a Collection Period, the
fifteenth calendar day of the following calendar month, or if such day is not a
Business Day, the next succeeding Business Day, commencing February 15, 2001.

          "PERSON" means any legal person, including any individual,
corporation, partnership, joint venture, association, joint stock company,
trust, unincorporated organization or government or any agency or political
subdivision thereof.

          "POOL BALANCE" means, as of any date, the aggregate Principal Balance
of the Receivables (exclusive of all Administrative Receivables for which the
Servicer has paid the Administrative Purchase Payment, Warranty Receivables for
which the Seller has paid the Warranty Purchase Payment and Defaulted
Receivables) as of the close of business on such date.

                                       16
<PAGE>

          "POOL FACTOR" as of any Payment Date, means a seven-digit decimal
figure equal to the Pool Balance as of such Payment Date divided by the Original
Pool Balance.

          "PRECOMPUTED ADVANCE" means an advance in respect of principal or
interest on a Precomputed Receivable in the amount determined as set forth in
Section 5.04(a).

          "PRECOMPUTED RECEIVABLE" means any Actuarial Receivable or Rule of 78s
Receivable.

          "PREPAYMENT" means (i) with respect to any Precomputed Receivable and
any Collection Period, any prepayment in full or Excess Payment which the
Servicer, in accordance with its customary servicing practices, will apply
towards the payment of Scheduled Payments due during or prior to such Collection
Period or (ii) with respect to any Simple Interest Receivable, any prepayment,
whether in part or in full, in respect of such Simple Interest Receivable.

          "PRINCIPAL BALANCE" means, with respect to any Receivable as of any
date, the Amount Financed minus the sum of the following amounts: (i) in the
case of a Precomputed Receivable, that portion of all Scheduled Payments due on
or prior to such date allocable to principal, computed in accordance with the
actuarial method, (ii) in the case of a Simple Interest Receivable, that portion
of all Scheduled Payments actually received on or prior to such date allocable
to principal, (iii) any Warranty Purchase Payment or Administrative Purchase
Payment with respect to such Receivable allocable to principal, and (iv) any
Prepayments or other payments applied to reduce the unpaid principal balance of
such Receivable. The Principal Balance of a Defaulted Receivable is zero.

          "PRINCIPAL DISTRIBUTION ACCOUNT" means the administrative subaccount
established within the Collection Account by the Indenture Trustee pursuant to
the Indenture and the Trust Agreement.

          "PRINCIPAL DISTRIBUTION AMOUNT" means, with respect to any Payment
Date, an amount equal to the excess, if any, of (a) the Pool Balance as of the
end of the Collection Period preceding the related Collection Period, or, as of
the Cutoff Date, in the case of the first Collection Period, over (b) the Pool
Balance as of the end of the related Collection Period together with any portion
of the Principal Distribution Amount that would have been required to be
deposited into the Principal Distribution Account on any prior Payment Date had
there been sufficient funds available to make such deposit; provided, however,
that the Principal Distribution Amount shall not exceed the outstanding
principal amount of all the Notes on such Payment Date (prior to giving effect
to any principal payments made on such Payment Date), together with any portion
of the Principal Distribution Amount that was to be deposited into the Principal
Distribution Account on any prior Payment Date but was not because sufficient
funds were not available to make the deposit; and provided, further, that (i)
the Principal Distribution Amount on the Class A-1 Final Scheduled Payment Date
shall not be less than the amount that is necessary to reduce the outstanding
principal amount of the Class A-1 Notes to zero; (ii) the Principal Distribution
Amount on the Class A-2 Final Scheduled Payment Date shall not be less than the
amount that is necessary to reduce the outstanding principal amount of the Class
A-2 Notes to zero; (iii), the Principal Distribution Amount on the Class A-3
Final Scheduled Payment Date

                                       17
<PAGE>

shall not be less than the amount that is necessary to reduce the outstanding
principal amount of the Class A-3 Notes to zero; and (iv) the Principal
Distribution Amount on the Class A-4 Final Scheduled Payment Date shall not be
less than the amount that is necessary to reduce the outstanding principal
amount of the Class A-4 Notes to zero.

          "RATING AGENCY" means either or each of Moody's and Standard & Poor's,
as indicated by the context.

          "REBATE" means, with respect to a Precomputed Receivable and any date,
the rebate, calculated on an actuarial basis, under such Precomputed Receivable
that is or would be payable to the related Obligor for unearned finance charges
or any other charges subject to rebate if such Obligor were to prepay such
Receivable in full on such date.

          "RECEIVABLE" means any retail installment sale contract executed by an
Obligor in respect of a Financed Vehicle, and all proceeds thereof and payments
thereunder, which Receivable shall be identified in the Schedule of Receivables.

          "RECEIVABLE FILE" means the documents specified in Section 2.02
pertaining to a particular Receivable.

          "RECEIVABLES PURCHASE AGREEMENT" means that certain Receivables
Purchase Agreement, dated as of January 1, 2001, between the Seller and TMCC.

          "RECORD DATE" means, with respect to the Notes of any Class and each
Payment Date, the calendar day immediately preceding such Payment Date or, if
Definitive Notes representing any Class of Notes have been issued, the last day
of the month immediately preceding the month in which such Payment Date occurs.
Any amount stated "as of a Record Date" or "on a Record Date" shall give effect
to (i) all applications of collections, and (ii) all payments and distributions
to any party under this Agreement, the Indenture and the Trust Agreement or to
the related Obligor, as the case may be, in each case as determined as of the
opening of business on the related Record Date.

          "RECOVERIES" means, with respect to any Receivable that becomes a
Liquidated Receivable, monies collected in respect thereof, from whatever
source, during any Collection Period following the Collection Period in which
such Receivable became a Liquidated Receivable, net of the sum of any amounts
expended by the Servicer for the account of the Obligor and any amounts required
by law to be remitted to the Obligor.

          "RELEASED ADMINISTRATIVE AMOUNT" means, with respect to a Payment Date
and to an Administrative Receivable, the Deferred Prepayment, if any, for such
Administrative Receivable.

          "RELEASED WARRANTY AMOUNT" means, with respect to a Payment Date and
to a Warranty Receivable, the Deferred Prepayment, if any, for such Warranty
Receivable.

          "RELEVANT TRUSTEE" means (i) with respect to the control over or
appropriate designation denoting ownership or control over any property
comprising a portion of the Owner Trust Estate (as defined in the Trust
Agreement) that either is not conveyed or pledged to the

                                       18
<PAGE>

Indenture Trustee for the benefit of the Noteholders and Certificateholder
pursuant to the Granting Clause of the Indenture or that has been released from
the lien of the Indenture, the Owner Trustee, and (ii) with respect to any
property comprising a portion of the Trust Estate (as defined in the Indenture)
that has not been released from the lien of the Indenture, the Indenture
Trustee; PROVIDED, HOWEVER, that with respect to any property that is under the
joint or separate control of a co-trustee or separate trustee under the Trust
Agreement or the Indenture, respectively, "Relevant Trustee" shall refer to
either or both of the Owner Trustee and such co-trustee or separate trustee or
to either or both of the Indenture Trustee and such co-trustee or separate
trustee, as the case may be.

          "RESERVE ACCOUNT" means the account designated as such, established
and maintained pursuant to Section 5.07.

          "RESERVE ACCOUNT INITIAL DEPOSIT" means $3,875,000.

          "RULE OF 78s RECEIVABLE" means any Receivable which provides for the
allocation of payments according to the "sum of periodic balances" or "sum of
monthly payments" method.

          "SCHEDULE OF RECEIVABLES" means the schedule of receivables attached
as Schedule A to this Agreement, as it may be amended from time to time.

          "SCHEDULED PAYMENT" means, with respect to any Payment Date and to a
Receivable, the payment set forth in such Receivable as due from the Obligor in
the related Collection Period; provided, however, that in the case of the first
Collection Period, the Scheduled Payment shall include all such payments due
from the Obligor on or after the Cutoff Date.

          "SECURITIES ACCOUNT CONTROL AGREEMENT" means the Securities Account
Control Agreement dated January 1, 2001, among the Seller, U.S. Bank National
Association, as Securities Intermediary thereunder, and U.S. Bank National
Association, as Indenture Trustee, pursuant to which the Reserve Fund will be
established and maintained.

          "SECURITIES ACT" means the Securities Act of 1933, as amended.

          "SECURITYHOLDER" see the definition of "Holder."

          "SELLER" means TMCRC, and its successors in interest to the extent
permitted hereunder.

          "SERVICER" means TMCC, as the servicer of the Receivables, and each
successor to TMCC (in the same capacity) pursuant to Section 7.03 or 8.02.

          "SERVICER'S CERTIFICATE" means an Officer's Certificate of the
Servicer delivered pursuant to Section 4.10, substantially in the form attached
hereto as Exhibit A.

          "SERVICER DEFAULT" means an event specified in Section 8.01.

          "SERVICING FEE RATE" means 1.00% per annum.

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<PAGE>

          "SIMPLE INTEREST ADVANCE" means an advance in respect of interest on
any Simple Interest Receivable in the amount determined as set forth in Section
5.04(a).

          "SIMPLE INTEREST METHOD" means the method of allocating a fixed level
payment to principal and interest, pursuant to which the portion of such payment
that is allocated to interest is equal to the product of the fixed rate of
interest multiplied by the unpaid principal balance multiplied by the period of
time elapsed since the preceding payment of interest was made and the remainder
of such payment is allocable to principal.

          "SIMPLE INTEREST RECEIVABLE" means any Receivable which provides for
the allocation of payments according to the simple interest method.

          "SPECIFIED RESERVE ACCOUNT BALANCE" means with respect to any Payment
Date, an amount equal to the greater of 0.75% of the outstanding Principal
Balance of the Receivables as of the end of the related Collection Period or (b)
$7,750,000 (0.50% of the outstanding Principal Balance of the Receivables as of
the Cutoff Date); provided however, that if, on any Payment Date (x) the average
of the Charge-off Rates for the three preceding Collection Periods exceeds 1.25%
or (y) the average of the Delinquency Percentages for the three preceding
Collection Periods exceeds 1.25%, the Specified Reserve Account Balance will be
the greatest of (a) 0.75% of the outstanding Principal Balance of the
Receivables as of the end of the related Collection Period (b) $7,750,000 (0.50%
of the outstanding principal balance of the Receivables as of the Cutoff Date)
and (c) 5.50% of the Class A Note Balance as of such Payment Date (after giving
effect to any principal payments made on the Notes on such Payment Date);
provided further, that the Specified Reserve Balance with respect to any date
shall not exceed the sum of the Class A Note Balance as of the preceding Payment
Date (after giving effect to any principal payments made on the Notes on such
preceding Payment Date).

          "STANDARD & POOR'S" means Standard & Poor's Ratings Services, a
Division of the McGraw-Hill Companies, and its successors.

          "SUCCESSOR SERVICER" means any entity appointed as a successor to the
Servicer pursuant to Section 8.02.

          "SUPPLEMENTAL SERVICING FEE" means, with respect to any Payment Date,
all late fees, prepayment charges, extension fees and other administrative fees
and expenses or similar charges allowed by applicable law with respect to the
Receivables received by the Servicer during the related Collection Period.

          "SWAP COUNTERPARTY" shall mean Toyota Motor Credit Corporation, as
swap counterparty under the Interest Rate Swap Agreement, or any successor or
replacement swap counterparty from time to time under the Interest Rate Swap
Agreement.

          "SWAP EVENT OF DEFAULT" means (i) the failure of the Issuer or the
Swap Counterparty to pay any amount when due under the Interest Rate Swap
Agreement after giving effect to any applicable grace period; (ii) the
occurrence of certain events of insolvency or bankruptcy of the Issuer or the
Swap Counterparty as specified in the Interest Rate Swap Agreement and (iii)
certain other standard events of default under the 1992 ISDA Master Agreement as
specified in the Interest Rate Swap Agreement including "Breach of Agreement"

                                       20
<PAGE>

(not applicable to the Issuer), "Misrepresentation" (not applicable to the
Issuer) and "Merger without Assumption," as described in Sections 5(a)(ii),
5(a)(iv) and 5(a)(viii) of the 1992 ISDA Master Agreement.

          "SWAP PAYMENTS INCOMING" means on any Payment Date the net amount, if
any, then payable by a Swap Counterparty to the Issuer, excluding any Swap
Termination Payments.

          "SWAP PAYMENTS OUTGOING" means on any Payment Date the net amount, if
any, then payable by the Issuer to the Swap Counterparty, excluding any Swap
Termination Payments.

          "SWAP TERMINATION EVENT" means (i) certain events of insolvency of
bankruptcy of the Issuer or the Swap Counterparty as specified in the Interest
Rate Swap Agreement; (ii) any Event of Default under the Indenture that results
in the acceleration of the Notes or involving an uncured payment default; (iii)
the Issuer or Swap Counterparty becomes subject to registration as an
"investment company" under the Investment Company Act of 1940; and (iv) certain
standard termination events under the 1992 ISDA Master Agreement as specified in
the Interest Rate Swap Agreement including "Illegality," "Tax Event" and "Tax
Event Upon Merger," each as more fully described in Sections 5(b)(i), 5(b)(ii)
and 5(b)(iii) of the 1992 ISDA Master Agreement.

          "SWAP TERMINATION PAYMENT" means any termination payment payable by
the Issuer to the Swap Counterparty or by the Swap Counterparty to the Issuer
under the Interest Rate Swap Agreement.

          "TMCC" means Toyota Motor Credit Corporation, a California
corporation, and its successors and assigns.

          "TMCRC" means Toyota Motor Credit Receivables Corporation, a
California corporation, or its successors.

          "TOTAL SERVICING FEE" means the sum of the Basic Servicing Fee and the
Supplemental Servicing Fee.

          "TRUST" means the Issuer.

          "TRUST AGREEMENT" means the Second Amended and Restated Trust
Agreement, dated as of January 1, 2001, by and among the Seller, the Owner
Trustee and the Delaware Trustee.

          "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, without
limitation, all property and interests granted to the Indenture Trustee pursuant
to the granting clause of the Indenture), including all proceeds thereof.

          "TRUST OFFICER" means, in the case of the Indenture Trustee, any
officer within the Corporate Trust Office of the Indenture Trustee, including
any Vice President, Assistant Vice

                                       21
<PAGE>

President, Secretary, Assistant Secretary or any other officer of the Indenture
Trustee customarily performing functions similar to those performed by any of
the above designated officers 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 and, with respect to
the Owner Trustee, any officer in the Corporate Trust Administration Department
of the Owner Trustee with direct responsibility for the administration of the
Trust Agreement and the Basic Documents on behalf of the Owner Trustee.

          "UCC" means the Uniform Commercial Code as in effect in the relevant
jurisdiction.

          "UNITED STATES" means the United States of America.

          "WARRANTY PURCHASE PAYMENT" means, with respect to a Payment Date and
to (1) a Warranty Receivable which is a Precomputed Receivable repurchased by
the Seller as of the close of business on the last day of the related Collection
Period, (a) the sum of (i) all Scheduled Payments on such Receivable due after
the last day of such Collection Period, (ii) all past due Scheduled Payments for
which an Advance has not been made, (iii) an amount equal to any reimbursement
of Outstanding Advances made pursuant to Section 5.04(b) with respect to such
Receivable and (iv) an amount equal to all other Outstanding Advances made
pursuant to Section 5.04(c) with respect to such Receivable, minus (b) the sum
of (i) the Rebate, if any, paid to the Obligor on a Precomputed Receivable on or
before the date of such purchase (except to the extent specified in Section
4.03) and (ii) any other proceeds in respect of such Receivable received during
any Collection Period prior to or during such Collection Period (to the extent
applied to reduce the Principal Balance of such Receivable on such Payment
Date), and (2) a Warranty Receivable which is a Simple Interest Receivable
repurchased by the Seller as of the close of business on the last day of the
related Collection Period, the sum of (a) the unpaid principal balance owed by
the Obligor in respect of such Receivable plus (b) interest on such unpaid
principal balance at a rate equal to 6.80% plus the Servicing Fee Rate to the
last day in the related Collection Period.

          "WARRANTY RECEIVABLE" means a Receivable which the Seller is required
to repurchase pursuant to Section 4.08.

     SECTION 1.02 USAGE OF TERMS. With respect to all terms in this Agreement,
the singular includes the plural and the plural the singular; words importing
any gender include the other genders; references to "writing" include printing,
typing, lithography and other means of reproducing words in a visible form;
references to agreements and other contractual instruments include all
subsequent amendments thereto or changes therein entered into in accordance with
their respective terms and not prohibited by this Agreement; references to
Persons include their permitted successors and assigns; and the term "including"
means "including without limitation."

                                       22
<PAGE>

                                   ARTICLE II

                            CONVEYANCE OF RECEIVABLES

     SECTION 2.01 CONVEYANCE OF RECEIVABLES. (a) Upon the execution of this
Agreement by the parties hereto, the Seller, pursuant to the mutually agreed
upon terms contained in this Agreement, shall sell, transfer, assign and
otherwise convey to the Owner Trustee on behalf of the Issuer, without recourse
(but subject to the Seller's obligations in this Agreement), all of its right,
title and interest in and to the Receivables and any proceeds related thereto,
including any Dealer Recourse and such other items as shall be specified in this
Agreement. Concurrently therewith and in exchange therefor, the Issuer shall
deliver to, or to the order of, the Seller the Notes and the Certificate.

     (b) In consideration of the foregoing and other good and valuable
consideration to be delivered to the Seller hereunder, on behalf of the Issuer,
the Seller does hereby sell, transfer, assign and otherwise convey to the Owner
Trustee on behalf of the Issuer, in trust for the benefit of the
Certificateholder, without recourse (subject to the Seller's obligations
herein):

          (i) all right, title and interest of the Seller in and to the
     Receivables and all monies due thereon or paid thereunder or in respect
     thereof (including proceeds of the repurchase of Receivables by the Seller
     pursuant to Section 3.02 or the purchase of Receivables by the Servicer
     pursuant to Section 4.08 or 9.01) on or after the Cutoff Date;

          (ii) the interest of the Seller in the security interests in the
     Financed Vehicles granted by the Obligors pursuant to the Receivables and
     any accessions thereto;

          (iii) the interest of the Seller in any proceeds of any physical
     damage insurance policies covering Financed Vehicles and in any proceeds of
     any credit life or credit disability insurance policies relating to the
     Receivables or the Obligors;

          (iv) the interest of the Seller in any Dealer Recourse;

          (v) the right of the Seller to realize upon any property (including
     the right to receive future Liquidation Proceeds) that shall have secured a
     Receivable and have been repossessed pursuant to the terms thereof;

          (vi) the rights and interests of the Seller under the Receivables
     Purchase Agreement;

          (vii) all other assets comprising the Owner Trust Estate; and

          (viii) all proceeds of the foregoing.

     (c) It is the intention of the Seller that the transfer and assignment
contemplated by this Agreement shall constitute a sale of the Receivables from
the Seller to the Issuer and the beneficial interest in and title to the
Receivables shall not be part of the Seller's estate in the event of the filing
of a bankruptcy petition by or against the Seller under any bankruptcy law. The
Seller agrees to execute and file all filings (including filings under the UCC)
necessary in

                                       23
<PAGE>

any jurisdiction to provide third parties with notice of the sale of the
Receivables pursuant to this Agreement and to perfect such sale under the UCC.

     (d) Although the parties hereto intend that the transfer and assignment
contemplated by this Agreement be a sale, in the event such transfer and
assignment is deemed to be other than a sale, the parties intend that all
filings described in the foregoing paragraph shall give the Owner Trustee on
behalf of the Issuer a first priority perfected security interest in, to and
under the Receivables, and other property conveyed hereunder and all proceeds of
any of the foregoing. This Agreement shall be deemed to be the grant of a
security interest from the Seller to the Owner Trustee on behalf of the Issuer,
and the Owner Trustee on behalf of the Issuer shall have all the rights, powers
and privileges of a secured party under the UCC.

     (e) In connection with the foregoing conveyance, the Servicer shall
maintain its computer system so that, from and after the time of sale of the
Receivables to the Owner Trustee on behalf of the Issuer under this Agreement,
the Servicer's master computer records (including any back-up archives) that
refer to any Receivable indicate clearly the interest of the Issuer in such
Receivable and that the Receivable is owned by the Issuer and controlled by the
Owner Trustee on behalf of the Issuer. Indication of the Issuer's ownership of a
Receivable shall be deleted from or modified on the Servicer's computer systems
when, and only when, the Receivable has been paid in full, repurchased or
assigned pursuant to this Agreement.

     (f) Ownership and control of the Receivables, as between the Issuer, the
Owner Trustee and the Indenture Trustee (on behalf of the Noteholders and
Certificateholder) shall be governed by the Indenture.

     SECTION 2.02 CUSTODY OF RECEIVABLES FILES. To assure uniform quality in
servicing the Receivables and to reduce administrative costs, the Owner Trustee
on behalf of the Issuer, upon the execution and delivery of this Agreement,
appoints the Servicer, and the Servicer accepts such appointment, to act as the
agent of the Issuer as custodian of the following documents or instruments (the
parties hereto expressly acknowledging and agreeing that the Servicer may
appoint a third party to act as the agent of the Servicer to maintain possession
of such documents or instruments as contemplated by Sections 3.01(v) and 3.03(b)
of this Agreement) which are hereby constructively delivered to the Owner
Trustee with respect to each Receivable:

          (a) the fully executed original of the Receivable;

          (b) documents evidencing or related to any Insurance Policy;

          (c) the original credit application of each Obligor, fully executed by
     such Obligor on TMCC's customary form, or on a form approved by TMCC, for
     such application;

          (d) the original certificate of title (or evidence that such
     certificate of title has been applied for) or such documents that the
     Servicer shall keep on file, in accordance with TMCC's customary
     procedures, evidencing the security interest in the related Financed
     Vehicle; and

                                       24
<PAGE>

          (e) any and all other documents that the Seller or the Servicer, as
     the case may be, shall keep on file, in accordance with its customary
     procedures, relating to such Receivable or the related Obligor or Financed
     Vehicle.

     SECTION 2.03 ACCEPTANCE BY OWNER TRUSTEE. The Owner Trustee hereby
acknowledges its acceptance, on behalf of the Issuer, pursuant to this
Agreement, of all right, title and interest in and to the Receivables conveyed
by the Seller pursuant to this Agreement and declares and shall declare from and
after the date hereof that the Owner Trustee holds and shall hold such right,
title and interest, upon the terms and conditions set forth in this Agreement.

                                  ARTICLE III

                                 THE RECEIVABLES

     SECTION 3.01 REPRESENTATIONS AND WARRANTIES OF THE SELLER WITH RESPECT TO
THE RECEIVABLES. The Seller makes the following representations and warranties
as to the Receivables on which the Issuer is deemed to have relied in acquiring
the Receivables. Such representations and warranties speak as of the execution
and delivery of this Agreement and as of the Closing Date, but shall survive the
sale, transfer and assignment of the Receivables to the Issuer, and the pledge
thereof to the Indenture Trustee pursuant to the Indenture.

          (a) CHARACTERISTICS OF RECEIVABLES. Each Receivable (i) shall have
     been originated in the United States by a Dealer for the retail sale of the
     related Financed Vehicle in the ordinary course of such Dealer's business,
     shall have been fully and properly executed by the parties thereto, shall
     have been purchased by TMCC from such Dealer under an existing agreement
     with TMCC and shall have been validly assigned by such Dealer to TMCC in
     accordance with the terms of such agreement and shall have been
     subsequently sold by TMCC to the Seller pursuant to the Receivables
     Purchase Agreement, (ii) shall have created or shall create a valid,
     subsisting and enforceable first priority security interest in favor of
     TMCC in the related Financed Vehicle, which security interest has been
     assigned by TMCC to the Seller and shall be assignable, and shall be so
     assigned, by the Seller to the Owner Trustee on behalf of the Issuer
     hereby, (iii) shall, except as otherwise provided in this Agreement,
     provide for monthly payments that fully amortize the Amount Financed by
     maturity (except for minimally different payments in the first or last
     month in the life of the Receivable) and provide for a finance charge or
     yield interest at its APR, in either case calculated based on the Rule of
     78s, the simple interest method or the actuarial method, (iv) shall contain
     customary and enforceable provisions, such that the rights and remedies of
     the holder thereof shall be adequate for realization against the collateral
     of the benefits of the security and (v) shall provide for, in the event
     that such Receivable is prepaid, a prepayment that fully pays the Principal
     Balance and includes accrued but unpaid interest.

          (b) SCHEDULE OF RECEIVABLES. The information set forth in the Schedule
     of Receivables shall be true and correct in all material respects as of the
     opening of business on the Cutoff Date, and no selection procedures adverse
     to the Securityholders shall have been utilized in selecting the
     Receivables from those automobile and light duty truck

                                       25
<PAGE>

     receivables of TMCC which met the selection criteria set forth in this
     Section and this Agreement.

          (c) COMPLIANCE WITH LAW. To the knowledge of the Seller, each
     Receivable and each sale of the related Financed Vehicle shall have
     complied at the time it was originated or made, and shall comply at the
     time of execution of this Agreement, in all material respects with all
     requirements of applicable federal, state and local laws, and regulations
     thereunder, including usury laws, the Federal Truth-in-Lending Act, the
     Equal Credit Opportunity Act, the Fair Credit Billing Act, the Fair Credit
     Reporting Act, the Fair Debt Collection Practices Act, the Federal Trade
     Commission Act, the Magnuson-Moss Warranty Act, Federal Reserve Board
     Regulations B, M and Z (to the extent applicable), state adaptations of the
     National Consumer Act and of the Uniform Consumer Credit Code and other
     consumer credit, equal credit opportunity and disclosure laws, except with
     respect to applicable Florida documentary stamp taxes as to which the
     effect of noncompliance will not have a material adverse effect on such
     Receivable.

          (d) BINDING OBLIGATION. Each Receivable shall constitute the legal,
     valid and binding payment obligation in writing of the related Obligor,
     enforceable by the holder thereof in accordance with its terms, except as
     enforceability may be limited by bankruptcy, insolvency, reorganization,
     moratorium and other similar laws affecting the enforcement of creditors'
     rights in general and by general principles of equity, regardless of
     whether such enforceability shall be considered in a proceeding in equity
     or at law.

          (e) NO BANKRUPT OBLIGORS. None of the Receivables shall be due, to the
     best knowledge of the Seller, from any Obligor who is presently the subject
     of a bankruptcy proceeding or is bankrupt or is insolvent.

          (f) NO GOVERNMENT OBLIGORS. None of the Receivables shall be due from
     the United States or any state, or from any agency, department or
     instrumentality of the United States or any state or local government.

          (g) EMPLOYEE OBLIGORS. None of the Receivables shall be due from any
     employee of the Seller, TMCC or any of their respective Affiliates.

          (h) SECURITY INTEREST IN FINANCED VEHICLES. Immediately prior to the
     sale, assignment and transfer thereof, each Receivable shall be secured by
     a validly perfected first priority security interest in the related
     Financed Vehicle in favor of TMCC as secured party or all necessary and
     appropriate action with respect to such Receivable shall have been taken to
     perfect a first priority security interest in such Financed Vehicle in
     favor of TMCC as secured party.

          (i) RECEIVABLES IN FORCE. No Receivable shall have been satisfied,
     subordinated or rescinded, nor shall any Financed Vehicle have been
     released in whole or in part from the lien granted by the related
     Receivable.

          (j) NO WAIVERS. No provision of a Receivable shall have been waived in
     such a manner that such Receivable fails to meet all of the other
     representations and warranties made by the Seller herein with respect
     thereto.

                                       26
<PAGE>

          (k) NO AMENDMENTS. No Receivable shall have been amended or modified
     in such a manner that the total number of Scheduled Payments has been
     increased or that the related Amount Financed has been increased or that
     such Receivable fails to meet all of the other representations and
     warranties made by the Seller herein with respect thereto.

          (l) NO DEFENSES. No facts shall be known to the Seller which would
     give rise to any right of rescission, setoff, counterclaim or defense, nor
     shall the same have been asserted or threatened, with respect to any
     Receivable.

          (m) NO LIENS. To the knowledge of the Seller, no liens or claims shall
     have been filed as of the date of this Agreement, including liens for work,
     labor or materials relating to a Financed Vehicle, that shall be liens
     prior to, or equal or coordinate with, the security interest in such
     Financed Vehicle granted by the related Receivable, which Liens shall not
     have been released or satisfied as of the Closing Date.

          (n) NO DEFAULT; NO REPOSSESSION. Except for payment defaults that, as
     of the Cutoff Date, have been continuing for a period of not more than 30
     days, no default, breach, violation or event permitting acceleration under
     the terms of any Receivable shall have occurred as of the Cutoff Date; no
     continuing condition that with notice or the lapse of time would constitute
     a default, breach, violation or event permitting acceleration under the
     terms of any Receivable shall have arisen; the Seller shall not have waived
     any of the foregoing; and no Financed Vehicle has been repossessed without
     reinstatement as of the Cutoff Date.

          (o) INSURANCE. The terms of each Receivable require the Obligor to
     obtain and maintain physical damage insurance covering the related Financed
     Vehicle in accordance with TMCC's normal requirements. The terms of each
     Receivable allow, but do not require TMCC to (and TMCC, in accordance with
     its current normal servicing procedures, does not) obtain any such coverage
     on behalf of the Obligor.

          (p) GOOD TITLE. It is the intention of the Seller that the transfer
     and assignment herein contemplated, taken as a whole, constitute a sale of
     the Receivables from the Seller to the Issuer and that the beneficial
     interest in and title to the Receivables not be part of the debtor's estate
     in the event of the filing of a bankruptcy petition by or against the
     Seller under any bankruptcy law. No Receivable has been sold, transferred,
     assigned or pledged by the Seller to any Person other than the Issuer, and
     no provision of a Receivable shall have been waived, except for a waiver
     that would not violate clause (j) above; immediately prior to the transfer
     and assignment herein contemplated, the Seller had good and marketable
     title to each Receivable free and clear of all Liens and rights of others;
     immediately upon the transfer and assignment thereof, the Issuer shall have
     good and marketable title to each Receivable, free and clear of all Liens
     and rights of others; and the transfer and assignment herein contemplated
     has been perfected under the UCC.

          (q) LAWFUL ASSIGNMENT. No Receivable shall have been originated in, or
     shall be subject to the laws of, any jurisdiction under which the sale,
     transfer and assignment of such Receivable under this Agreement or pursuant
     to a transfer of the related certificate of title shall be unlawful, void
     or voidable.

                                       27

<PAGE>

          (r) ALL FILINGS MADE. As of the Closing Date, all filings (including
     UCC filings) necessary in any jurisdiction to provide third parties with
     notice of the transfer and assignment herein contemplated, to perfect the
     sale of the Receivables from the Seller to the Owner Trustee and to give
     the Owner Trustee on behalf of the Issuer a first priority perfected
     security interest in the Receivables shall have been made.

          (s) ONE ORIGINAL. There shall be only one original executed copy of
     each Receivable.

          (t) CHATTEL PAPER. Each Receivable constitutes "chattel paper" as
     defined in the UCC.

          (i) ADDITIONAL REPRESENTATIONS AND WARRANTIES. (i) Each Receivable
     shall have an original number of Scheduled Payments of not less than 12 nor
     more than 72 and, as of the Cutoff Date, a remaining number of Scheduled
     Payments of not less than 4 nor more than 72; (ii) each Receivable provides
     for the payment of a finance charge based on an APR ranging from 8% to 15%;
     (iii) each Receivable shall have had an original principal balance of not
     less than $1,200 and not more than $50,000 and, as of the Cutoff Date, an
     unpaid principal balance of not less than $277 nor more than $50,000; (iv)
     no Receivable was originated under a special financing program; (v) no
     Receivable shall have a Scheduled Payment that is more than 30 days past
     due as of the Cutoff Date; (vi) no Financed Vehicle was subject to
     force-placed insurance as of the Cutoff Date; (vii) there is no Receivable
     as to which payments ahead of more than 6 Scheduled Payments have been
     received from or on behalf of the related Obligor; and (viii) each
     Receivable is being serviced by Toyota Motor Credit Corporation.

          (u) LOCATION OF RECEIVABLE FILES. Each Receivable File shall be kept
     at one of the locations listed in the Schedule of Receivables or at such
     other office as shall be specified to the Owner Trustee and the Indenture
     Trustee as provided in Section 3.03(b).

     SECTION 3.02 REPURCHASE UPON BREACH. The Seller, the Servicer or the Owner
Trustee, as the case may be, shall inform the other parties to this Agreement
and the Indenture Trustee promptly, in writing, upon the discovery of any breach
of the Seller's representations and warranties made pursuant to Section 3.01 or
6.01 that materially and adversely affects the interests of the Issuer in any
Receivable. As of the last day of the second Collection Period following the
Collection Period in which it discovers or receives notice of such breach (or,
at the Seller's election, the last day of the first Collection Period following
the Collection Period in which it discovers or receives notice of such breach),
the Seller shall, unless such breach shall have been cured in all material
respects, repurchase such Receivable and, if necessary, the Seller shall enforce
the obligation of TMCC under the Receivables Purchase Agreement to repurchase
such Receivable from the Seller. Notwithstanding the foregoing, the obligation
of the Seller to repurchase a Receivable shall not be conditioned on the
performance by TMCC of its obligation to repurchase such Receivable from the
Seller pursuant to the Receivables Purchase Agreement. This repurchase
obligation shall obtain for all representations and warranties of the Seller
contained in this Agreement whether or not the Seller has knowledge of the
breach at the time of the breach or at the time the representations and
warranties were made. In consideration of the repurchase of any such Receivable,
on the Business Day immediately preceding the related

                                       28
<PAGE>

Payment Date, the Seller shall remit the Warranty Purchase Payment of such
Receivable to the Collection Account in the manner specified in Section 5.05 and
shall be entitled to receive the Released Warranty Amount. The sole remedy of
the Owner Trustee, the Issuer, the Indenture Trustee (by operation of the
assignment of the Owner Trustee's rights hereunder pursuant to the Indenture) or
any Securityholder with respect to a breach of the Seller's representations and
warranties pursuant to this Agreement shall be to require the Seller to
repurchase the related Receivable pursuant to this Section and to enforce TMCC's
obligation to the Seller to repurchase such Receivables pursuant to the
Receivables Purchase Agreement. The Owner Trustee shall have no duty to conduct
any affirmative investigation as to the occurrence of any condition requiring
the repurchase of any Receivable pursuant to this Section. In connection with
such repurchase, the Owner Trustee and Indenture Trustee shall take all steps
necessary to effect a transfer of such Receivable as set forth in Section
9.01(d).

     SECTION 3.03 DUTIES OF SERVICER AS CUSTODIAN.

     (a) SAFEKEEPING. The Servicer shall hold the Receivable Files as custodian
for the benefit of the Issuer and maintain such accurate and complete accounts,
records and computer systems pertaining to each Receivable File as shall enable
the Issuer to comply with this Agreement. In performing its duties as custodian
the Servicer shall act with reasonable care, using that degree of skill and
attention that the Servicer exercises with respect to the receivable files
relating to comparable automotive receivables that the Servicer services for
itself or others. The Servicer shall promptly report to the Issuer and the
Indenture Trustee any failure on its part to hold the Receivable Files and
maintain its accounts, records and computer systems as herein provided and shall
promptly take appropriate action to remedy any such failure. Nothing herein
shall be deemed to require an initial review or any periodic review by the
Issuer, the Owner Trustee or the Indenture Trustee of the Receivable Files.

     (b) MAINTENANCE OF AND ACCESS TO RECORDS. The Servicer shall maintain each
Receivable File at one of its offices specified in Schedule B or at such other
office of the Servicer or a third party agent retained by the Servicer as shall
be specified to the Issuer and the Indenture Trustee by written notice not later
than 90 days after any change in location. The Servicer shall make available to
the Issuer, the Swap Counterparty and the Indenture Trustee or their respective
duly authorized representatives, attorneys or auditors a list of locations of
the Receivable Files and the related accounts, records and computer systems
maintained by the Servicer at such times during normal business hours as the
Issuer or the Indenture Trustee shall instruct with reasonable advance notice.

     (c) RELEASE OF DOCUMENTS. Upon instruction from the Indenture Trustee, the
Servicer shall release any Receivable File to the Indenture Trustee, the
Indenture Trustee's agent or the Indenture Trustee's designee, as the case may
be, at such place or places as the Indenture Trustee may designate, as soon as
practicable.

     SECTION 3.04 INSTRUCTIONS; AUTHORITY TO ACT. The Servicer shall be deemed
to have received proper instructions with respect to the Receivable Files upon
its receipt of written instructions signed by a Trust Officer of the Owner
Trustee or the Indenture Trustee. A certified copy of a bylaw or of a resolution
of the board of directors of the Owner Trustee or of the Indenture Trustee shall
constitute conclusive evidence of the authority of such Trust Officer to

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<PAGE>

act, and shall be considered conclusive evidence of the authority of such Trust
Officer to act until receipt by the Servicer of written notice to the contrary
given by the Owner Trustee or Indenture Trustee, as the case may be.

     SECTION 3.05 CUSTODIAN'S INDEMNIFICATION. The Servicer as custodian shall
indemnify the Issuer, the Owner Trustee and the Indenture Trustee and each of
their respective officers, directors, employees and agents for any and all
liabilities, obligations, losses, compensatory damages, payments, costs or
expenses of any kind whatsoever that may be imposed on, incurred by or asserted
against any of them as the result of any improper act or omission in any way
relating to the maintenance and custody by the Servicer as custodian of the
Receivable Files; PROVIDED, HOWEVER, that the Servicer shall not be liable to
the Owner Trustee for any portion of any such amount resulting from the willful
misfeasance, bad faith or negligence of the Owner Trustee or Indenture Trustee
and the Servicer shall not be liable to the Indenture Trustee for any portion of
any such amount resulting from the willful misfeasance, bad faith or negligence
of the Indenture Trustee or Owner Trustee.

     SECTION 3.06 EFFECTIVE PERIOD AND TERMINATION. The Servicer's appointment
as custodian shall become effective as of the date hereof, and shall continue in
full force and effect until terminated pursuant to this Section. If TMCC shall
resign as Servicer in accordance with the provisions of this Agreement or if all
of the rights and obligations of any Servicer shall have been terminated under
Section 8.01, the appointment of TMCC (as Servicer) as custodian shall be
terminated hereunder without further action by the Indenture Trustee, Owner
Trustee, Noteholders or the Certificateholder. The Indenture Trustee or, with
the consent of the Indenture Trustee, the Owner Trustee may terminate the
Servicer's appointment as custodian, with cause, at any time upon written
notification to the Servicer, and without cause upon 30 days' prior written
notification to the Servicer. The Owner Trustee, Indenture Trustee or
Noteholders may terminate the Servicer as custodian hereunder in the same manner
as the Owner Trustee, Indenture Trustee or Noteholders may terminate the rights
and obligations of the Servicer under Section 8.01. As soon as practicable after
any termination of such appointment, the Servicer shall deliver the Receivable
Files to the Relevant Trustee or the agent thereof at such place or places as
the Relevant Trustee may reasonably designate.

                                   ARTICLE IV

                   ADMINISTRATION AND SERVICING OF RECEIVABLES

     SECTION 4.01 DUTIES OF SERVICER. The Servicer, for the benefit of the
Issuer and the Securityholders (to the extent provided herein), shall manage,
service, administer and make collections on the Receivables with reasonable
care, using that degree of skill and attention that the Servicer exercises with
respect to comparable automotive receivables that it services for itself or
others. The Servicer's duties shall include collection and posting of all
payments, responding to inquiries of Obligors or by federal, state or local
government authorities with respect to the Receivables, investigating
delinquencies, sending payment information to Obligors, reporting tax
information to Obligors in accordance with its customary practices, accounting
for collections, furnishing monthly and annual statements to the Owner Trustee
and the Indenture Trustee with respect to payments and distributions and making
Advances and performing the other duties

                                       30
<PAGE>

specified herein. The Servicer shall follow its customary standards, policies
and procedures as in effect from time to time and shall 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. Nothing in the foregoing or in any other section of this Agreement
shall be construed to prevent the Servicer from implementing new programs,
whether on an intermediate, pilot or permanent basis, or on a regional or
nationwide basis, or from modifying its standards, policies and procedures as
long as, in each case, the Servicer does or would implement such programs or
modify its standards, policies and procedures in respect of comparable assets
serviced for itself in the ordinary course of business.

     Without limiting the generality of the foregoing, the Servicer is
authorized and empowered to execute and deliver, on behalf of itself, the
Issuer, the Owner Trustee, the Indenture Trustee, the Securityholders or any of
them, any and all instruments of satisfaction or cancellation, or partial or
full release or discharge, and all other comparable instruments, with respect to
such Receivables and the Financed Vehicles. The Servicer is hereby authorized to
communicate with Obligors in the ordinary course of its servicing of the
Receivables and Financed Vehicles in its own name. The Servicer is hereby
authorized to commence, in its own name or in the name of the Issuer, a legal
proceeding to enforce a Defaulted Receivable or to commence or participate in a
legal proceeding (including without limitation a bankruptcy proceeding) relating
to or involving a Receivable, including a Defaulted Receivable. If the Servicer
shall commence or participate in a legal proceeding to enforce a Receivable, the
Issuer shall thereupon be deemed to have automatically assigned to the Servicer,
solely for the purpose of collection on behalf of the party retaining an
interest in such Receivable, such Receivable and the other property conveyed to
the Issuer hereby with respect to such Receivable for purposes of commencing or
participating in any such proceeding as a party or claimant, and the Servicer is
authorized and empowered by the Owner Trustee 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. If in
any enforcement suit or legal proceeding it shall be held that the Servicer may
not enforce a Receivable on the ground that it shall not be a real party in
interest or a holder entitled to enforce such Receivable, the Owner Trustee on
behalf of the Issuer shall, at the Servicer's expense and direction, take steps
to enforce such Receivable, including bringing suit in its name or the name of
the Owner Trustee, the Indenture Trustee, the Certificateholder and/or the
Noteholders. The Owner Trustee shall furnish the Servicer with any powers of
attorney and other documents 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 4.02 COLLECTION AND ALLOCATION OF RECEIVABLE PAYMENTS. The Servicer
shall make reasonable efforts to collect all payments called for under the terms
and provisions of the Receivables as and when the same shall become due and
shall follow such customary collection procedures as it follows with respect to
comparable automotive receivables that it services for itself or others. The
Servicer shall be authorized to grant extensions, rebates or adjustments on a
Receivable in accordance with the customary servicing standards of the Servicer
without the prior consent of the Owner Trustee, Indenture Trustee or any
Securityholder; provided, however, that if, as a result of any change in the
related APR or the Amount Financed, any increase in the total number of
Scheduled Payments or any extension of payments such that the Receivable will be
outstanding later than the Class A-4 Final Scheduled Payment Date, the amount of
any

                                       31
<PAGE>

Scheduled Payment due in a subsequent Collection Period is reduced, the Servicer
shall be obligated to either repurchase such Receivable pursuant to Section 4.08
or to make an Advance in respect of such Receivable in each subsequent
Collection Period equal to the amount by which such Scheduled Payment has been
reduced. In addition, in the event that any such rescheduling or extension of a
Receivable modifies the terms of such Receivable in such a manner as to release
the security interest in the related Financed Vehicle or constitute a
cancellation of such Receivable and the creation of a new automobile or light
duty truck receivable, the Servicer shall purchase such Receivable pursuant to
Section 4.08, and the receivable created shall not be included as an asset of
the Issuer. The Servicer may, in accordance with its customary servicing
procedures, waive any prepayment charge, late payment charge or any other fees
that may be collected in the ordinary course of servicing the Receivables.

     SECTION 4.03 REBATES ON FULL PREPAYMENTS. In the event that the amount of a
full Prepayment by an Obligor under a Precomputed Receivable, after adjustment
for the applicable Rebate, is less than the amount that would be payable under
the actuarial method if a full Prepayment were made at the end of the billing
month under such Precomputed Receivable, either because the Rebate calculated
under the terms of such Precomputed Receivable is greater than the amount
calculable under the actuarial method or because the Servicer's customary
servicing procedure is to credit a greater Rebate, the Servicer, as part of its
servicing duties, shall remit such difference by deposit into the Collection
Account pursuant to Section 5.05.

     SECTION 4.04 REALIZATION UPON RECEIVABLES. On behalf of the Issuer, the
Servicer shall use its best efforts, consistent with its customary servicing
procedures, to repossess or otherwise comparably convert the ownership of any
Financed Vehicle that it has reasonably determined should be repossessed or
otherwise converted following a default under the Receivable secured by the
Financed Vehicle (and shall specify such Receivables to the Relevant Trustee no
later than the Determination Date following the end of the Collection Period in
which the Servicer shall have made such determination). The Servicer shall
follow such practices and procedures as it shall deem necessary or advisable and
as shall be customary and usual in its servicing of automobile and light duty
truck receivables, which practices and procedures may include reasonable efforts
to realize upon any Dealer Recourse, selling the related Financed Vehicle at
public or private sale and other actions to realize upon such a Receivable. The
Servicer shall be entitled to recover its Liquidation Expenses with respect to
each Defaulted Receivable. All Net Liquidation Proceeds realized in connection
with any such action with respect to a Receivable shall be deposited by the
Servicer in the Collection Account in the manner specified in Section 5.02. The
foregoing is subject to the proviso that, in any case in which the Financed
Vehicle shall have suffered damage, the Servicer shall not expend funds in
connection with any repair or towards the repossession of such Financed Vehicle
unless it shall determine in its discretion that such repair and/or repossession
shall increase the Liquidation Proceeds of the related Receivable by an amount
greater than the amount of such expenses.

     SECTION 4.05 PHYSICAL DAMAGE INSURANCE. The Servicer shall, in accordance
with its customary servicing procedures, require that each Obligor shall have
delivered proof that it has obtained physical damage insurance covering the
related Financed Vehicle at the date of origination of the related Receivable,
but shall not obtain any such coverage on behalf of any Obligor. The Servicer
shall be required to monitor the maintenance by any Obligor of such

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<PAGE>

insurance only to the same extent, if any, that the Servicer monitors such
maintenance by obligors with respect to retail automobile sales contracts that
are held for the account of TMCC.

     SECTION 4.06 MAINTENANCE OF SECURITY INTERESTS IN FINANCED VEHICLES. The
Servicer shall, in accordance with its customary servicing procedures and at its
own expense, take such steps as are necessary to maintain perfection of the
security interest created by each Receivable in the related Financed Vehicle.
The Issuer hereby authorizes the Servicer to take such steps as are necessary to
again perfect such security interest on behalf of the Issuer and the Indenture
Trustee in the event of the relocation of a Financed Vehicle or for any other
reason. In the event that the assignment of a Receivable to the Issuer is
insufficient, without a notation on the related Financed Vehicle's certificate
of title, to grant to the Issuer a first priority perfected security interest in
the related Financed Vehicle, the Servicer hereby agrees to serve as the agent
of the Issuer for the purpose of perfecting the security interest of the Issuer
in such Financed Vehicle and agrees that the Servicer's listing as the secured
party on the certificate of title is in this capacity as agent of the Issuer.

     SECTION 4.07 COVENANTS OF SERVICER. The Servicer hereby makes the following
covenants to the Issuer on which the Issuer has relied in purchasing the
Receivables and issuing the Certificate, and on which the Indenture Trustee will
rely in undertaking the trusts set forth in the Indenture and issuing the Notes.

          (a) LIENS IN FORCE. Except as contemplated by this Agreement, the
     Servicer shall not release in whole or in part any Financed Vehicle from
     the security interest securing the related Receivable.

          (b) NO IMPAIRMENT. The Servicer shall do nothing to impair the rights
     of the Securityholders in the Receivables.

          (c) NO AMENDMENTS. Except as provided in Section 4.02, the Servicer
     shall not amend or otherwise modify any Receivable such that the total
     number of Scheduled Payments, the Amount Financed or the APR is altered, or
     extend the maturity of such Receivable beyond the Class A-4 Final Scheduled
     Payment Date.

     SECTION 4.08 PURCHASE OF RECEIVABLES UPON BREACH. The Servicer shall inform
the Owner Trustee and Indenture Trustee promptly, in writing, upon the actual
knowledge of one of its officers of, and the Owner Trustee shall inform the
Servicer and the Indenture Trustee promptly, in writing, upon the actual
knowledge of one of its Trust Officers of, any breach pursuant to Section 4.06
or 4.07 that materially and adversely affects the interests of the Issuer in a
Receivable, or if an extension, rescheduling or modification of a Receivable is
made by the Servicer as described in Section 4.02 and the Servicer does not
elect to make Advances to cover resulting reductions in interest accruals as
provided in Section 4.02, the party discovering such event shall give prompt
written notice to the others. As of the last day of the second Collection Period
following the Collection Period in which it discovers or receives notice of such
event (or, at the Servicer's election, the last day of the first Collection
Period following the Collection Period in which it discovers or receives notice
of such breach), the Servicer shall, unless such event shall have been cured in
all material respects or such modification has been rescinded or the Servicer
has elected to and does make all required Advances, purchase from the Issuer
such

                                       33
<PAGE>

Receivable. In consideration of the purchase of any such Receivable, on the
Business Day immediately preceding the related Payment Date the Servicer shall
remit the Administrative Purchase Payment to the Collection Account in the
manner specified in Section 5.05, and shall be entitled to receive the Released
Administrative Amount. Upon such deposit of the Administrative Purchase Payment,
the Servicer shall for all purposes of this Agreement be deemed to have released
all claims for reimbursement of Outstanding Advances made in respect of such
Receivable. Except as otherwise provided in Section 7.02, the sole remedy of the
Owner Trustee, the Issuer, the Indenture Trustee or any Securityholders against
the Servicer with respect to a breach pursuant to Section 4.02, 4.06 or 4.07
shall be to require the Servicer to purchase the related Receivables pursuant to
this Section. The Owner Trustee shall have no duty to conduct any affirmative
investigation as to the occurrence of any condition requiring the repurchase of
any Receivable pursuant to this Section. In connection with such repurchase, the
Owner Trustee and Indenture Trustee shall take all steps necessary to effect a
transfer of such Receivable to the Servicer as set forth in Section 9.01(d).

     SECTION 4.09 SERVICING FEE AND EXPENSES. As compensation for the
performance of its obligations hereunder, the Servicer shall be entitled to
receive on each Payment Date, out of Available Collections, the Total Servicing
Fee. The Basic Servicing Fee in respect of a Collection Period shall be
calculated based on a 360 day year comprised of twelve 30-day months. Except to
the extent otherwise provided herein, the Servicer shall be required to pay all
expenses incurred by it in connection with its activities under this Agreement
(including fees and disbursements of the Owner Trustee, the Indenture Trustee,
the Delaware Co-Trustee, the Administrator and the independent accountants,
taxes imposed on the Servicer, expenses incurred by the Servicer in connection
with its preparation of reports hereunder and all other fees and expenses not
expressly stated under this Agreement to be for the account of the
Certificateholder).

     SECTION 4.10 SERVICER'S CERTIFICATE. On or before each Determination Date,
the Servicer shall deliver to the Owner Trustee, each Paying Agent, the Swap
Counterparty (unless TMCC or an Affiliate thereof is the Servicer and the Swap
Counterparty at the time of delivery), the Indenture Trustee and the Seller,
with a copy to each Rating Agency, a Servicer's Certificate substantially in the
form of Exhibit A hereto, containing the information necessary to make the
payments to be made on the related Payment Date and the information necessary
for the Owner Trustee and the Indenture Trustee to send statements to the
Securityholders pursuant to the Trust Agreement or Indenture, as the case may
be. The Servicer shall also specify therein the identity of any Receivable that
the Servicer or the Seller became obligated to repurchase or that the Servicer
has determined to be a Defaulted Receivable during the related Collection
Period. Receivables purchased or to be purchased by the Servicer or the Seller
and Receivables that the Servicer has determined during such Collection Period
to be Defaulted Receivables and with respect to which payment of the
Administrative Purchase Payment or Warranty Purchase Payment has been provided
from whatever source as of last day of such Collection Period shall be
identified by the related Obligor's account number (as specified in the Schedule
of Receivables).

     SECTION 4.11 ANNUAL STATEMENT AS TO COMPLIANCE; NOTICE OF DEFAULT. (a)
Within 120 days after March 31 of each calendar year (commencing with the fiscal
year ended March 31, 2001), the Servicer shall deliver an Officer's Certificate
to the Owner Trustee, the Swap

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<PAGE>

Counterparty (unless TMCC or an Affiliate thereof is the Servicer and the Swap
Counterparty at the time of delivery) and the Indenture Trustee to the effect
that a review of the activities of the Servicer during the prior fiscal year (or
since the Closing Date in the case of the first such Officer's Certificate) has
been made under the supervision of the officer executing such Officer's
Certificate with a view to determining whether during such period the Servicer
has performed and observed all of its obligations under this Agreement, and
either (i) stating that, to the best of his or her knowledge, no default by the
Servicer under this Agreement has occurred and is continuing, or (ii) if such a
default has occurred and is continuing, specifying such default and the nature
and status thereof.

     (b) The Servicer shall deliver to the Owner Trustee, the Indenture Trustee,
the Swap Counterparty (unless TMCC or an Affiliate thereof is the Servicer and
the Swap Counterparty at the time of delivery) and the Rating Agencies, promptly
after having obtained knowledge thereof, but in no event later than five
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 Default under Section 8.01(a) or (b).

     SECTION 4.12 ANNUAL ACCOUNTANTS' REPORT. Within 120 days after March 31 of
each fiscal year for the Servicer (commencing with the year ended March 31,
2001), the Servicer shall deliver to the Owner Trustee and the Indenture Trustee
a report prepared by the Independent Accountants of the Servicer concerning
their review of the activities of the Servicer during the preceding 12-month
period ended March 31 (or other applicable period in the case of the first such
report or letter) to the effect that such accountants have reviewed certain
records and documents relating to the servicing of the Receivables under this
Agreement (using procedures specified in such report or letter) and as a result
of such review, and in connection with such procedures, they are reporting such
exceptions, if any, as shall be set forth therein. Such report or letter shall
also indicate that the firm is independent with respect to the Seller and the
Servicer within the meaning of the Code of Professional Ethics of the American
Institute of Certified Public Accountants.

     In the event such Independent Accountants require the Owner Trustee or
Indenture Trustee to agree to the procedures performed by such firm, the
Servicer shall direct the Owner Trustee or Indenture Trustee in writing to so
agree; it being understood and agreed that the Owner Trustee or Indenture
Trustee will deliver such letter of agreement in conclusive reliance upon the
direction of the Servicer, and the Owner Trustee and Indenture Trustee need make
no independent inquiry or investigation as to, and shall have no obligation or
liability in respect of, the sufficiency, validity or correctness of such
procedures.

     SECTION 4.13 ACCESS TO CERTAIN DOCUMENTATION AND INFORMATION REGARDING
RECEIVABLES. The Servicer shall provide to the Swap Counterparty, the Owner
Trustee and Indenture Trustee reasonable access to the documentation regarding
the Receivables as provided in Section 3.03(b). The Servicer will provide such
access to any Securityholder only in such cases where the Certificateholder or
Noteholders shall be required by applicable statutes or regulations to review
such documentation. In each case, such access shall be afforded without charge,
but only upon reasonable request and during the normal business hours at the
respective offices of the Servicer. Nothing in this Section shall derogate from
the obligation of the Servicer to observe any applicable law prohibiting
disclosure of information regarding the Obligors and

                                       35
<PAGE>

the failure of the Servicer to provide access to information as a result of such
obligation shall not constitute a breach of this Section.

     SECTION 4.14 APPOINTMENT OF SUBSERVICER. The Servicer may at any time
appoint a subservicer to perform all or any portion of its obligations as
Servicer hereunder if each Rating Agency has received reasonable advance notice
of the Servicer's intention to do so and has not notified the Servicer that such
an appointment would or might result in the qualification, reduction or
withdrawal of a rating then assigned by such rating Agency to any Class of
Notes; PROVIDED, HOWEVER, that the Servicer shall remain obligated and be liable
to the Issuer, the Owner Trustee, the Indenture Trustee, the Swap Counterparty,
the Certificateholder and the Noteholders for the servicing and administering of
the Receivables in accordance with the provisions hereof without diminution of
such obligation and liability by virtue of the appointment of such subservicer
and to the same extent and under the same terms and conditions as if the
Servicer alone were servicing and administering the Receivables. The fees and
expenses of the subservicer shall be as agreed between the Servicer and its
subservicer from time to time, and none of the Issuer, the Owner Trustee, the
Indenture Trustee, the Swap Counterparty, the Certificateholder or the
Noteholders shall have any responsibility therefor.

     SECTION 4.15 AMENDMENTS TO SCHEDULE OF RECEIVABLES. If the Servicer, during
a Collection Period, assigns to a Receivable an account number that differs from
the original account number identifying such Receivable on the Schedule of
Receivables, the Servicer shall deliver to the Issuer, the Owner Trustee and the
Indenture Trustee, on or before the Payment Date relating to such Collection
Period, an amendment to the Schedule of Receivables reporting the newly assigned
account number, together with the old account number of each such Receivable.
The first such delivery of amendments to the Schedule of Receivables shall
include monthly amendments reporting account numbers appearing on the Schedule
of Receivables with the new account numbers assigned to such Receivables during
any prior Collection Period.

     SECTION 4.16 REPORTS TO SECURITYHOLDERS AND RATING AGENCIES. The Owner
Trustee shall send a copy of each Officer's Certificate delivered pursuant to
Section 4.11 and each report of independent accountants delivered pursuant to
Section 4.12 to the Rating Agencies within five days of its receipt thereof from
the Servicer or accountants. A copy of any such Officer's Certificate or
accountants report may be obtained by any Certificateholder, Noteholder or Note
Owner by a request in writing to the Owner Trustee addressed as set forth in
Section 10.03 hereof. Upon the telephone request of the Owner Trustee, the
Indenture Trustee will promptly furnish the Owner Trustee a list of Noteholders
as of the date specified by the Owner Trustee.

                                   ARTICLE V

                      ACCOUNTS; PAYMENTS AND DISTRIBUTIONS;
                          STATEMENTS TO SECURITYHOLDERS

     SECTION 5.01 ESTABLISHMENT OF COLLECTION ACCOUNT AND PAYAHEAD ACCOUNT.

     (a) The Servicer on behalf of the Owner Trustee and the Indenture Trustee,
shall establish the Collection Account and Payahead Account in the name of the
Indenture Trustee for the benefit of the Securityholders. Except as otherwise
provided in this Agreement, each such

                                       36
<PAGE>

account shall be an account initially established with the Indenture Trustee and
maintained with the Indenture Trustee so long as (i) the commercial paper or
other short-term unsecured debt obligations of the Indenture Trustee are rated
"P-1" or better by Moody's, or if not so rated by Moody's then otherwise
approved by Moody's, and "A-1+" or better by Standard & Poor's if rated by
Standard & Poor's, or if not so rated by Standard & Poor's then otherwise
approved by Standard & Poor's, in each case at the time of any deposit therein,
or (ii) such account is a segregated trust account located in the corporate
trust department of the Indenture Trustee bearing a designation clearly
indicating that the funds deposited therein (other than interest or investment
earnings thereon) are held in trust for the benefit of the Securityholders, and
the Indenture Trustee has a long-term deposit rating from Moody's (so long as
Moody's is a Rating Agency) of at least "A1" (or such lower rating as Moody's
shall approve in writing) and corporate trust powers under applicable federal
and state laws and is organized under the laws of the United States or any state
thereof, the District of Columbia or the Commonwealth of Puerto Rico. Except as
otherwise provided in this Agreement, in the event that the Indenture Trustee no
longer meets either of the foregoing requirements, then the Servicer shall, with
the Indenture Trustee's assistance as necessary, cause the Collection Account
and Payahead Account to be moved to a bank or trust company that satisfies
either of such requirements.

     (b) For so long as the depository institution or trust company then
maintaining the Collection Account and Payahead Account meets the requirements
of Section 5.01(a)(i) or (a)(ii), all amounts held in these accounts shall, to
the extent permitted by applicable laws, rules and regulations, be invested, as
directed in writing by the Servicer, in Eligible Investments; otherwise such
amounts shall be maintained in cash. Earnings on investment of funds in these
accounts (net of losses and investment expenses) shall be paid to the Servicer
on each Payment Date as servicing compensation, and any losses and investment
expenses shall be charged against the funds on deposit in the related account.

     (c) For so long as U.S. Bank National Association or U.S. Bank Trust
National Association is the Relevant Trustee, the Collection Account and
Payahead Account shall be maintained with U.S. Bank National Association as
described in clause (ii) of the second sentence of Section 5.01(a). In the event
that the long-term debt rating of the Relevant Trustee does not satisfy clause
(ii) of the second sentence of Section 5.01(a), the Servicer shall, with the
assistance of the Relevant Trustee as necessary, cause the Collection Account
and the Payahead Account to be moved to an institution or an account otherwise
satisfying the requirements of Section 5.01(a).

     (d) Subject to the foregoing, the Servicer, on behalf of the Owner Trustee
and the Indenture Trustee, shall establish and maintain as the Collection
Account an Eligible Deposit Account in the name of and under the exclusive
control of the Indenture Trustee, bearing a designation clearly indicating that
the funds deposited therein are held for the benefit of the Noteholders and the
Certificateholder. On the Closing Date, the Owner Trustee will transfer, or
cause to be transferred, to such Collection Account all funds or investments on
deposit in the Collection Account established pursuant to the Trust Agreement
for the benefit of the Certificateholder, and all of the proceeds thereof, and
will transfer all of its right, title and interest in the Collection Account,
all funds or investments held or to be held therein and all proceeds thereof,
whether or not on behalf of the Certificateholder, to the Indenture Trustee for
the benefit of the Swap Counterparty, the Noteholders and Certificateholder. The

                                       37
<PAGE>

Indenture Trustee will be obligated to transfer all amounts remaining on deposit
in the Collection Account on the Payment Date on which the Notes of all Classes
have been paid in full and the Interest Rate Swap Agreement has been terminated
and all Swap Payments Outgoing and all Swap Termination Payments payable to the
Swap Counterparty have been paid (or substantially all of the Trust Estate is
otherwise released from the lien of the Indenture) to the Collection Account
established pursuant to the Trust Agreement for the benefit of the
Certificateholder, and to take all necessary or appropriate actions to transfer
all of its right, title and interest in the Collection Account, all funds or
investments held or to be held therein and all proceeds thereof, whether or not
on behalf of the Swap Counterparty or the Noteholders and the Certificateholder,
to the Owner Trustee for the benefit of the Certificateholder, subject to the
limitations set forth in the Indenture with respect to amounts held for payment
to the Swap Counterparty or to Noteholders that do not promptly deliver a Note
for payment on such Payment Date.

     (e) With respect to the Collection Account and all property held therein,
the Owner Trustee agrees, by its acceptance hereof that, on the terms and
conditions set forth in the Indenture, for so long as Notes of any Class or the
Interest Rate Swap Agreement remain outstanding, the Indenture Trustee shall
possess all right, title and interest therein (excluding interest or investment
income thereon payable to the Servicer), and that such account shall be under
the sole dominion and control of the Indenture Trustee for the benefit of the
Swap Counterparty and the Noteholders and the Certificateholder, as the case may
be, as set forth in the Indenture. Subject to the right of the Indenture Trustee
to make withdrawals therefrom, as directed by the Servicer, for the purposes and
in the amounts set forth in Section 5.06, the Payahead Account and all funds
held therein shall be the property of the Servicer and not the property of the
Issuer, the Owner Trustee or the Indenture Trustee. The Issuer, Owner Trustee,
Seller and Indenture Trustee will treat the Payahead Account, all funds therein
and all net investment income with respect thereto as assets of the Servicer for
federal income tax and all other purposes. The parties hereto agree that the
Servicer shall have the power, revocable by the Indenture Trustee or by the
Owner Trustee with the consent of the Indenture Trustee, to instruct the
Indenture Trustee to make withdrawals and payments from the Collection Account
and the Payahead Account for the purpose of permitting the Servicer, Indenture
Trustee or the Owner Trustee to carry out its respective duties hereunder or
under the Indenture or the Trust Agreement, as the case may be.

     SECTION 5.02 COLLECTIONS. (a) Except as otherwise provided in this
Agreement, the Servicer shall remit daily to the Collection Account all payments
received by or on behalf of the Obligors on or in respect of the Receivables
(other than, in the case of Precomputed Receivables, payments constituting
Payments Ahead) and all Net Liquidation Proceeds within two Business Days after
receipt thereof. Notwithstanding the foregoing, for so long as the Monthly
Remittance Conditions are satisfied, the Servicer shall not be required to remit
such collections to the Collection Account on the foregoing daily basis but
shall be entitled to retain such collections, without segregation from its other
funds, until the Business Day before each Payment Date at which time the
Servicer shall remit all such collections in respect of the related Collection
Period to the Collection Account in immediately available funds. Commencing with
the first day of the first Collection Period that begins at least two Business
Days after the day on which any Monthly Remittance Condition ceases to be
satisfied and for so long as any Monthly Remittance Condition is not satisfied,
all collections then held by the Servicer shall be immediately deposited into
the Collection Account and all future collections on or in respect of

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the Receivables and all Net Liquidation Proceeds shall be remitted by the
Servicer to the Collection Account on a daily basis within two Business Days
after receipt thereof.

     (b) Except as otherwise provided in this Agreement, the Servicer shall
deposit all Payments Ahead in the Collection Account within two Business Days
after receipt thereof, which Payments Ahead shall be transferred to the Payahead
Account pursuant to Section 5.06(a)(ii). Notwithstanding the foregoing, so long
as all Monthly Remittance Conditions are satisfied, the Servicer will not be
required to deposit Payments Ahead in the Payahead Account within two Business
Days after receipt thereof but shall be entitled to retain such Payments Ahead,
without segregation from its other funds, until such time as the Servicer shall
be required to remit Applied Payments Ahead to the Collection Account pursuant
to Section 5.06(a)(i). Commencing with the first day of the first Collection
Period that begins at least two Business Days after the day on which any Monthly
Remittance Condition ceases to be satisfied and for so long as all Monthly
Remittance Conditions are not satisfied, all Payments Ahead then held by the
Servicer shall be immediately deposited into the Payahead Account and all future
Payments Ahead shall be remitted by the Servicer to the Payahead Account within
two Business Days after receipt thereof.

     (c) The Servicer shall give the Owner Trustee, the Indenture Trustee and
each Rating Agency written notice of the failure of any Monthly Remittance
Condition (and any subsequent curing of a failed Monthly Remittance Condition)
as soon as practical after the occurrence thereof. Notwithstanding the failure
of any Monthly Remittance Condition, the Servicer may utilize an alternative
collection or Payment Ahead remittance schedule (which may be the remittance
schedule previously utilized prior to the failure of such Monthly Remittance
Condition), if the Servicer provides to the Owner Trustee and Indenture Trustee
written confirmation from each Rating Agency that such alternative remittance
schedule will not result in the qualification, reduction or withdrawal of the
rating then assigned to any Class of Notes.

     SECTION 5.03 APPLICATION OF COLLECTIONS. As of the Business Day immediately
preceding the related Payment Date, all collections for the related Collection
Period shall be applied by the Servicer as follows:

     (a) With respect to each Receivable (other than an Administrative
Receivable or a Warranty Receivable), payments made by or on behalf of the
Obligor which are not Supplemental Servicing Fees shall be applied first to
reimburse the Servicer for Outstanding Advances made with respect to such
Receivable (each such payment, an "Overdue Payment"). Next, the amount of any
payment in excess of Supplemental Servicing Fees and Outstanding Advances with
respect to such Receivable shall be applied to the Scheduled Payment with
respect to such Receivable. If the amount of such payment remaining after the
applications described in the two preceding sentences (i) equals (together with
any Deferred Prepayment) the unpaid principal balance of such Receivable, it
shall be applied to prepay the principal balance of such Receivable, or (ii) is
less than the unpaid principal balance of such Receivable, it shall constitute
an Excess Payment with respect to such Receivable.

     (b) With respect to each Administrative Receivable and Warranty Receivable,
payments made by or on behalf of the Obligor shall be applied in the same
manner, except that any Released Administrative Amount or Released Warranty
Amount shall be remitted to the

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<PAGE>

Servicer or the Seller, as applicable. A Warranty Purchase Payment or an
Administrative Purchase Payment with respect to any Receivable shall be applied,
first, to reduce Outstanding Advances with respect to such Receivable and then
to the Scheduled Payment, in each case to the extent that the payments by the
Obligor shall be insufficient, and then to prepay the unpaid principal balance
of such Receivable in full.

     SECTION 5.04 ADVANCES; SWAP PAYMENTS.

     (a) As of the close of business on the last day of each Collection Period,
if the payments by or on behalf of the Obligor on a Precomputed Receivable
(other than an Administrative Receivable or a Warranty Receivable) after
application under Section 5.03(a) shall be less than the Scheduled Payment
(determined as of the Closing Date), whether as a result of any modification or
extension granted to the Obligor or otherwise, then the Deferred Prepayment, if
any, with respect to such Precomputed Receivable shall be applied by the
Servicer to the extent of the shortfall, and such Deferred Prepayment shall be
reduced accordingly. Subject to the provisions of the last sentence of this
paragraph, the Servicer shall deposit an amount equal to such shortfall (each, a
"Precomputed Advance") in the Collection Account on the Business Day immediately
preceding the related Payment Date. In addition, as of the last day of a
Collection Period, if the payments during such Collection Period by or on behalf
of the Obligor on or in respect of a Simple Interest Receivable (other than an
Administrative Receivable or a Warranty Receivable) after application under
Section 5.03(a) shall be less than the Scheduled Payment (determined as of the
Closing Date), whether as a result of any modification or extension granted to
the Obligor or otherwise, then an amount equal to the product of the principal
balance of such Receivable as of the first day of the related Collection Period
and one-twelfth of its Annual Percentage Rate minus the amount of interest
actually received on such Receivable during the Collection Period (each, a
"Simple Interest Advance") shall be deposited by the Servicer into the
Collection Account on the Business Day immediately preceding the related Payment
Date. If such a calculation in respect of a Simple Interest Receivable results
in a negative number, an amount equal to such negative amount shall be paid to
the Servicer in reimbursement of any outstanding Simple Interest Advances made
with respect to such Receivable. In addition, in the event that a Simple
Interest Receivable becomes a Liquidated Receivable, the amount of accrued and
unpaid interest thereon (but not including interest for the current Collection
Period) shall, up to the amount of any outstanding Simple Interest Advances made
with respect to such Receivable, be withdrawn from the Collection Account and
paid to the Servicer in reimbursement of such outstanding Simple Interest
Advances. No Advances will be made with respect to the Principal Balance of
Simple Interest Receivables. The Servicer shall not be required to make an
Advance (other than a Simple Interest Advance in respect of an interest
shortfall arising from the Prepayment of a Simple Interest Receivable) to the
extent that the Servicer, in its sole discretion, shall determine that such
Advance is unlikely to be recovered from subsequent payments made by or on
behalf of the related Obligor, Liquidation Proceeds, by the Administrative
Purchase Payment or by the Warranty Purchase Payment with respect to such
Receivable or otherwise.

     (b) The Servicer shall be entitled to reimbursement for Outstanding
Advances, without interest, with respect to a Receivable from the following
sources with respect to such Receivable: (i) subsequent payments made by or on
behalf of the related Obligor, (ii) Liquidation Proceeds and (iii) the Warranty
Purchase Payment; PROVIDED, HOWEVER, that in the

                                       40
<PAGE>

case of Advances made pursuant to Section 4.02, the Servicer shall be entitled
to reimbursement only from amounts received in respect of such Receivable that
are in excess of the amount of the Scheduled Payment in the related Collection
Period.

     (c) To the extent that the Servicer has determined that any Outstanding
Advance is a Nonrecoverable Advance, the Servicer may, in the relevant
Servicer's Certificate, set forth the amount of such Nonrecoverable Advance, and
on the related Payment Date, the Relevant Trustee shall promptly remit to the
Servicer from Actual Payments on deposit in the Collection Account an amount
equal to the amount of such Nonrecoverable Advance. The Servicer's determination
of Available Collections for any Collection Period shall take into account the
amount of Nonrecoverable Advances specified in any such Officer's Certificate.

     (d) For so long as the Monthly Remittance Conditions are satisfied, in lieu
of causing the Servicer first to deposit and then the Relevant Trustee to remit
to the Servicer the amounts described in clauses (i) through (iii) in Section
5.04(b) reimbursable in respect on Outstanding Advances, or the amounts
described in Section 5.04(c) applicable in respect of Nonrecoverable Advances,
the Servicer may deduct such amounts from deposits otherwise to be made into the
Collection Account.

     (e) In addition, for so long as the Monthly Remittance Conditions are
satisfied and TMCC or an Affiliate thereof is both the Servicer and the Swap
Counterparty, the Servicer may (i) deduct any Swap Payments Outgoing and Swap
Termination Payments owed by the Issuer to the Swap Counterparty from deposits
otherwise to be made into the Collection Account by the Servicer and (ii) add
any Swap Payments Incoming and Swap Termination Payments owed by the Swap
Counterparty to the Issuer to deposits otherwise to be made into the Collection
Account by the Servicer, and any such payments will be deemed to satisfy the
Swap Counterparty's or the Issuer's (as applicable) payment obligations to the
Issuer and the Swap Counterparty, respectively, under the Interest Rate Swap
Agreement.

     SECTION 5.05 ADDITIONAL DEPOSITS. (a) The following additional deposits
shall be made to the Collection Account: (i) the Seller shall remit the
aggregate Warranty Purchase Payments with respect to Warranty Receivables
pursuant to Section 3.02, (ii) the Servicer shall remit the aggregate
Administrative Purchase Payments with respect to Administrative Receivables
pursuant to Section 4.08 and the amount required upon any optional purchase of
the Receivables by the Servicer, or any successor to the Servicer, pursuant to
Section 9.01; (iii) the Servicer shall remit (A) the amount required to be
remitted in respect of certain full Prepayments pursuant to Section 4.03, (B)
the aggregate Advances pursuant to Sections 4.02, 5.03 and 5.04(a), (C) the
amount of Payments Ahead and Applied Payments Ahead withdrawn by the Servicer or
Indenture Trustee at the direction of the Servicer from the Payahead Account for
application with respect to such Collection Period, and (D) all Swap Payments
Incoming and Swap Termination Payments received from the Swap Counterparty; and
(iv) the Indenture Trustee shall transfer the amounts described in Sections 5.06
and 5.07 from the Reserve Account to the Collection Account or Principal
Distribution Account pursuant to Section 5.07.

     (b) All deposits required to be made pursuant to this Section by the Seller
or the Servicer, as the case may be, may be made in the form of a single deposit
and shall be made in immediately available funds, no later than 5:00 P.M., New
York City time, on the Business

                                       41
<PAGE>

Day immediately preceding the related Payment Date. At the direction of the
Servicer, the Relevant Trustee shall invest such amounts in Eligible Investments
maturing not later than 3:00 P.M. New York City Time, on the related Payment
Date.

     SECTION 5.06 PAYMENTS AND DISTRIBUTIONS.

     (a) On each Payment Date, the Indenture Trustee shall cause to be made the
following transfers and distributions in immediately available funds in the
amounts set forth in the Servicer's Certificate for such Payment Date (except
that if the Collection Account, Principal Distribution Account, Payahead Account
and Reserve Fund are not all maintained by the Indenture Trustee, transfers to
be made between such accounts as described in Section 5.05, 5.06 and 5.07 shall
be made on the Business Day immediately preceding each Payment Date):

          (i) from the Payahead Account (or directly from the Servicer in the
     case of Payments Ahead held by the Servicer pursuant to Section 5.02(a) or
     (b)) to the Collection Account, the aggregate Applied Payments Ahead; and

          (ii) if the Servicer is not permitted to hold Payments Ahead pursuant
     to Section 5.02(a) or (b), from the Collection Account to the Payahead
     Account, the aggregate Payments Ahead for the related Collection Period.

     In addition, on each Payment Date, the Indenture Trustee shall cause to be
paid from the Collection Account any Swap Payments Outgoing and Swap Termination
Payment payable by the Issuer to the Swap Counterparty under the Interest Rate
Swap Agreement, provided that such amounts were not deducted from amounts
remitted to the Collection Account by the Servicer pursuant to Section 5.04(e).

     (b) On each Determination Date, the Servicer shall calculate (i) the
Available Collections and the amounts to be paid to Noteholders of each Class
and the Certificateholder pursuant to Section 5.06(c) or 5.06(d), as the case
may be, (ii) the Swap Payments Outgoing, the Swap Payments Incoming, and any
Swap Termination Payments and (iii) all other distributions, deposits and
withdrawals to be made on the related Payment Date.

     (c) Subject to Section 5.06(d), on each Payment Date, the Relevant Trustee
shall make the following payments and distributions from the Collection Account
in the following order of priority and in the amounts set forth in the
Servicer's Certificate for such Payment Date; PROVIDED, HOWEVER, that such
payments and distributions shall be made only from those funds deposited in the
Collection Account for the related Collection Period and available therefore as
Available Collections:

     (i) from Available Collections:

          (A) to the Servicer, the Total Servicing Fee (including any unpaid
     Total Servicing Fees from one or more prior Collection Periods);

          (B) on a pro rata basis (based on the amounts distributable pursuant
     to this clause to each such Class), to the Holders of the Class A-1 Notes,
     the Class A-1 Interest Distributable Amount and any outstanding Class A-1
     Interest Carryover Shortfall, to the

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<PAGE>

     Holders of the Class A-2 Notes, the Class A-2 Interest Distributable Amount
     and any outstanding Class A-2 Interest Carryover Shortfall, to the Holders
     of the Class A-3 Notes, the Class A-3 Interest Distributable Amount and any
     outstanding Class A-3 Interest Carryover Shortfall, and to the Holders of
     the Class A-4 Notes, the Class A-4 Interest Distributable Amount and any
     outstanding Class A-4 Interest Carryover Shortfall;

          (C) to the Principal Distribution Account, the Principal Distribution
     Amount;

          (D) to the Reserve Account, the amount, if any, necessary to cause the
     balance of funds therein to equal the Specified Reserve Account Balance;
     and

          (E) any remaining amounts will be distributed to the
     Certificateholder.

     (ii) from the amounts deposited into the Principal Distribution Account
from the allocations of principal described in clause (i)(C) above, the Issuer
will pay principal of the Securities in the following priority:

          (A) to the Holders of Class A-1 Notes, until the total amount paid to
     such Holders in respect of principal from the Closing Date is equal to the
     Class A-1 Initial Principal Balance;

          (B) to the Holders of Class A-2 Notes, until the total amount paid to
     such Holders in respect of principal from the Closing Date is equal to the
     Class A-2 Initial Principal Balance;

          (C) to the Holders of Class A-3 Notes, until the total amount paid to
     such Holders in respect of principal from the Closing Date is equal to the
     Class A-3 Initial Principal Balance;

          (D) to the Holders of Class A-4 Notes, until the total amount paid to
     such Holders in respect of principal from the Closing Date is equal to the
     Class A-4 Initial Principal Balance; and

          (E) after the total amount paid to Holders of the Class A-4 Notes in
     respect of principal from the Closing Date is equal to the Class A-4
     Initial Principal Balance, any remaining funds will be paid to the
     Certificateholder.

     (d) Notwithstanding the provisions of Section 5.06(c), after an Event of
Default occurs that results in the acceleration of the Notes and unless and
until such acceleration has been rescinded, on each Payment Date, the Relevant
Trustee shall make the following payments and distributions from the Collection
Account in the following order of priority and in the amounts set forth in the
Servicer's Certificate for such Payment Date; PROVIDED, HOWEVER, that such
payments and distributions shall be made only from Available Collections
deposited in the Collection Account for the related Collection Period:

          (i) to the Servicer, the Total Servicing Fee (including any unpaid
     Total Servicing Fees from one or more prior Collection Periods);

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<PAGE>

          (ii) on a pro rata basis (based on the amounts distributable pursuant
     to this clause to each such Class), to the Holders of the Class A-1 Notes,
     the Class A-1 Interest Distributable Amount and any outstanding Class A-1
     Interest Carryover Shortfall, to the Holders of the Class A-2 Notes, the
     Class A-2 Interest Distributable Amount and any outstanding Class A-2
     Interest Carryover Shortfall, to the Holders of the Class A-3 Notes, the
     Class A-3 Interest Distributable Amount and any outstanding Class A-3
     Interest Carryover Shortfall, and to the Holders of the Class A-4 Notes,
     the Class A-4 Interest Distributable Amount and any outstanding Class A-4
     Interest Carryover Shortfall;

          (iii) to the Holders of Class A-1 Notes, Class A-2 Notes, Class A-3
     Notes and the Class A-4 Notes, on a pro rata basis (based on the
     Outstanding Amount of each such Class), until the total amount paid to such
     Holders in respect of principal from the Closing Date is equal to the Class
     A-1 Initial Principal Balance, Class A-2 Initial Principal Balance, the
     Class A-3 Initial Principal Balance, and the Class A-4 Initial Principal
     Balance, respectively;

          (iv) after the total amount paid to such Holders in respect of
     principal from the Closing Date is equal to the Class A-1 Initial Principal
     Balance, Class A-2 Initial Principal Balance, the Class A-3 Initial
     Principal Balance, and the Class A-4 Initial Principal Balance,
     respectively, any remaining funds will be paid to the Certificateholder.

     (e) For purposes of determining whether an Event of Default pursuant to
Section 5.01(b) of the Indenture has occurred, the amount of principal required
to be paid to the Holders of any Class of Notes on any Payment Date is the
amount available to be paid thereto pursuant to Sections 5.06(c)(i)(C) and
5.06(d)(iii); provided however that (i) the Class A-1 Notes are required to be
paid in full on or before the Class A-1 Final Scheduled Payment Date, meaning
that Holders of Class A-1 Notes are entitled to have received on or before such
date payments in respect of principal in an aggregate amount equal to the Class
A-1 Initial Principal Balance together with all interest accrued thereon through
such date; (ii) the Class A-2 Notes are required to be paid in full on or before
the Class A-2 Final Scheduled Payment Date, meaning that Holders of Class A-2
Notes are entitled to have received on or before such date payments in respect
of principal in an aggregate amount equal to the Class A-2 Initial Principal
Balance together with all interest accrued thereon through such date, (iii) the
Class A-3 Notes are required to be paid in full on or before the Class A-3 Final
Scheduled Payment Date, meaning that Holders of Class A-3 Notes are entitled to
have received on or before such date payments in respect of principal in an
aggregate amount equal to the Class A-3 Initial Principal Balance together with
all interest accrued thereon through such date; and (iv) the Class A-4 Notes are
required to be paid in full on or before the Class A-4 Final Scheduled Payment
Date, meaning that Holders of Class A-4 Notes are entitled to have received on
or before such date payments in respect of principal in an aggregate amount
equal to the Class A-4 Initial Principal Balance together with all interest
accrued thereon through such date.

     (f) Except with respect to the final payment upon retirement of a Note or
Certificate, the Servicer shall on each Payment Date instruct the Relevant
Trustee to pay or distribute to each Securityholder of record on the related
Record Date by check mailed to such Securityholder at the address of such Holder
appearing in the Note Register, or herein (in the case of the Certificate) (or,
if DTC, its nominee or a Clearing Agency is the relevant Holder, by wire

                                       44
<PAGE>

transfer of immediately available funds or pursuant to other arrangements), the
amount to be paid or distributed to such Securityholder pursuant to such
Holder's Note or Certificate. With respect to the final payment upon retirement
of a Note or of the Certificate, the Servicer shall on the relevant final
Payment Date instruct the Relevant Trustee to pay or distribute the amounts due
thereon only upon delivery for cancellation of the certificate representing such
Note or Certificate in accordance with the Indenture or the Trust Agreement, as
the case may be.

     SECTION 5.07 RESERVE ACCOUNT. (a) In order to assure that certain amounts
will be available to make required payments to Noteholders, the Seller will,
pursuant to the Securities Account Control Agreement and the Indenture,
establish and maintain with the Indenture Trustee a segregated trust account
(the "Reserve Account") which will include the money and other property
deposited and held therein pursuant to Section 5.06(c)(i)(D) and this Section.
On or prior to the Closing Date, the Seller shall deposit an amount equal to the
Reserve Account Initial Deposit into the Reserve Account. As and to the extent
set forth in Section 5.06(c)(i)(D), as directed in writing by the Servicer, the
Indenture Trustee will deposit Available Collections into the Reserve Account on
each Payment Date, until the amount on deposit therein equals the Specified
Reserve Account Balance. On each Payment Date, to the extent that Available
Collections are insufficient to fully fund the payments and distributions
described in clauses (i)(A) through (C) of Section 5.06(c) or in clauses (i)
through (iii) of Section 5.06(d), the Indenture Trustee will withdraw amounts
then on deposit in the Reserve Account (excluding net investment income on
Eligible Investments which amounts are payable to the Seller therefrom), up to
the amounts of any such deficiencies, and deposit such amounts into the
Collection Account for application pursuant to such clauses. Also on each
Payment Date, as directed in writing by the Servicer, the Indenture Trustee will
release to the Seller any amounts remaining on deposit in the Reserve Account in
excess of the Specified Reserve Account Balance. Also, upon the termination of
the trusts established under the Trust Agreement and the Indenture, as directed
in writing by the Servicer, the Indenture Trustee will release to the Seller any
amounts remaining on deposit in the Reserve Account. Upon any such distribution
to the Seller, the Issuer, Owner Trustee, Certificateholder, Indenture Trustee
and Noteholders will have no further rights in, or claims to, such amounts.

     (b) All amounts held in the Reserve Account shall be invested by the
Indenture Trustee, as directed in writing by the Servicer, in Eligible
Investments. Earnings on investment of funds in the Reserve Account shall be
paid to the Seller on each Payment Date, and losses and any investment expenses
shall be charged against the funds on deposit therein. The Indenture Trustee
shall incur no liability for the selection of investments or for losses thereon
absent its own negligence or willful misfeasance. The Indenture Trustee shall
have no liability in respect of losses incurred as a result of the liquidation
of any investment prior to its stated maturity date or the failure of the
Servicer to provide timely written investment directions.

     (c) Subject to the right of the Indenture Trustee to make withdrawals
therefrom, as directed by the Servicer, for the purposes and in the amounts set
forth in Section 5.06, the Reserve Account and all funds held therein shall be
the property of the Seller and not the property of the Issuer, the Owner Trustee
or the Indenture Trustee. The Issuer, Owner Trustee, Seller and Indenture
Trustee will treat the Reserve Account, all funds therein and all net investment
income with respect thereto as assets of the Seller for federal income tax and
all other purposes.

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<PAGE>

     (d) The Seller will grant to the Indenture Trustee, for the benefit of the
Noteholders, a security interest in all funds (including Eligible Investments)
in the Reserve Account (including the Reserve Account Initial Deposit) and the
proceeds thereof, and the Indenture Trustee shall have all of the rights of a
secured party under the UCC with respect thereto; provided that all income from
the investment of funds in the Reserve Account and the right to receive such
income are retained by the Seller and are not transferred, assigned or otherwise
conveyed hereunder. If for any reason the Reserve Account is no longer an
Eligible Deposit Account, the Indenture Trustee shall promptly cause the Reserve
Account to be moved to another institution or otherwise changed so that the
Reserve Account becomes an Eligible Deposit Account.

     Neither the Owner Trustee nor the Indenture Trustee shall enter into any
subordination or intercreditor agreement with respect to the Reserve Account.

     SECTION 5.08 STATEMENTS TO CERTIFICATEHOLDER, NOTEHOLDERS, AND SWAP
COUNTERPARTY.

     (a) On each Payment Date, the Servicer shall provide to the Indenture
Trustee (with a copy to the Rating Agencies and each Paying Agent) for the
Indenture Trustee to forward to each Noteholder of record as of the most recent
Record Date and to the Owner Trustee (with a copy to each Paying Agent) for the
Owner Trustee to forward to each Certificateholder of record as of the most
recent Record Date a statement substantially in the form of Exhibit A and to the
Swap Counterparty (unless TMCC or an Affiliate thereof is the Servicer and the
Swap Counterparty at the time of delivery), setting forth at least the following
information as to the Notes and the Certificate to the extent applicable:

          (i) the amount paid or distributed in respect of interest in respect
     of each Class of Notes;

          (ii) the amount paid or distributed in respect of principal on or with
     respect to each Class of Notes;

          (iii) the amount paid or distributed to the Certificateholder;

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

          (v) the Outstanding Amount, the Class A-1 Principal Balance, the Class
     A-2 Principal Balance, the Class A-3 Principal Balance, the Class A-4
     Principal Balance, and the Note Pool Factor for each Class of Notes, in
     each case after giving effect to all payments in respect of principal on
     such Payment Date;

          (vi) the amount of the Servicing Fee paid to the Servicer with respect
     to the related Collection Period;

          (vii) the amount of any Class A-1 Interest Carryover Shortfall, Class
     A-2 Interest Carryover Shortfall, Class A-3 Interest Carryover Shortfall
     and Class A-4 Interest Carryover Shortfall after giving effect to all
     payments of interest on such Payment Date, and the change in such amounts
     from the preceding Payment Date;

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<PAGE>

          (viii) the aggregate amount of Payments Ahead on deposit in the
     Payahead Account or held by the Servicer with respect to the related
     Receivables and the change in such amount from the immediately preceding
     Payment Date;

          (ix) the amount of Advances made in respect of the related Receivables
     and the related Collection Period and the amount of unreimbursed Advances
     on such Payment Date;

          (x) the balance of any Reserve Account on such Payment Date and the
     Specified Reserve Account Amount on such Payment Date, after giving effect
     to changes thereto on such Payment Date; and

          (xi) the Class A-3 Notional Balance, the Class A-4 Notional Balance,
     the Class A-3 Rate, the Class A-4 Rate, the Swap Payments Incoming, the
     Swap Payments Outgoing and the Swap Termination Payment.

     SECTION 5.09 NET DEPOSITS. As an administrative convenience, the Seller,
the Servicer, the Owner Trustee and the Indenture Trustee may make any
remittances pursuant to this Article net of amounts to be distributed by the
applicable recipient to such remitting party. Nonetheless, each such party shall
account to the Owner Trustee, the Indenture Trustee, the Noteholders and the
Certificateholder for all of the above described remittances, payments and
distributions as if all deposits, payments, distributions and transfers were
made individually.

                                   ARTICLE VI

                                   THE SELLER

     SECTION 6.01 REPRESENTATIONS OF SELLER. The Seller makes the following
representations on which the Issuer is deemed to have relied in acquiring the
Receivables. The representations speak as of the execution and delivery of this
Agreement and as of the Closing Date, and shall 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 Seller shall have been duly
organized and shall be validly existing as a corporation in good standing under
the laws of the State of California, with corporate power and authority to own
its properties and to conduct its business as such properties shall be currently
owned and such business is presently conducted, and had at all relevant times,
and shall now have, corporate power, authority and legal right to acquire, own
and sell the Receivables.

     (b) DUE QUALIFICATION. The Seller shall be duly qualified to do business as
a foreign corporation in good standing, and shall have obtained all necessary
licenses and approvals in all jurisdictions in which the ownership or lease of
property or the conduct of its business shall require such qualifications and
where the failure to so qualify will have a material adverse effect on the
ability of the Seller to conduct its business or perform its obligations under
this Agreement.

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<PAGE>

     (c) POWER AND AUTHORITY. The Seller shall have the corporate power and
authority to execute and deliver this Agreement and to carry out its terms; the
Seller shall have full corporate power and authority to sell and assign the
property to be sold and assigned to and deposited as part of the Owner Trust
Estate or Trust Estate, as the case may be, and shall have duly authorized such
sale and assignment to the Issuer, the Owner Trustee or the Indenture Trustee,
as the case may be; and the execution, delivery and performance of this
Agreement shall have been duly authorized by the Seller by all necessary
corporate action.

     (d) VALID SALE; BINDING OBLIGATIONS. This Agreement shall evidence a valid
sale, transfer and assignment of the Receivables, enforceable against creditors
of and purchasers from the Seller; and shall constitute a legal, valid and
binding obligation of the Seller enforceable in accordance with its terms,
except as enforceability may be limited by bankruptcy, insolvency,
reorganization or other similar laws affecting creditors' rights generally or by
general equity principles.

     (e) NO VIOLATION. The consummation of the transactions contemplated by this
Agreement and the fulfillment of the terms of this Agreement shall not conflict
with, result in any breach of any of the terms and provisions of, nor constitute
(with or without notice or lapse of time) a default under, the articles of
incorporation or bylaws of the Seller or any indenture, agreement or other
instrument to which the Seller is a party or by which it shall be bound; nor
result in the creation or imposition of any Lien upon any of its properties
pursuant to the terms of any such indenture, agreement or other instrument
(other than the Basic Documents), nor violate any law or, to the best of the
Seller's knowledge, any order, rule or regulation applicable to the Seller of
any court or of any federal or state regulatory body, administrative agency or
other governmental instrumentality having jurisdiction over the Seller or its
properties which breach, default, conflict, lien or violation would have a
material adverse effect on the earnings, business affairs or business prospects
of the Seller.

     (f) NO PROCEEDINGS. There is no action, suit or proceeding before or by any
court or governmental agency or body, domestic or foreign, now pending, or to
the Seller's knowledge, threatened, against or affecting the Seller: (i)
asserting the invalidity of this Agreement, the Trust Agreement, the Indenture,
the Securities Account Control Agreement, the Certificate or the Notes, (ii)
seeking to prevent the issuance of the Certificate or the Notes or the
consummation of any of the transactions contemplated by this Agreement, the
Trust Agreement, or the Indenture, (iii) seeking any determination or ruling
that might materially and adversely affect the performance by the Seller of its
obligations under, or the validity or enforceability of, this Agreement, the
Trust Agreement, the Indenture, the Certificate or the Notes, or (iv) relating
to the Seller and which might adversely affect the federal income tax attributes
of the Issuer, the Certificate or the Notes.

     SECTION 6.02 CORPORATE EXISTENCE. During the term of this Agreement, the
Seller will keep in full force and effect its existence, rights and franchises
as a corporation under the laws of the jurisdiction of its incorporation and
will obtain and preserve its qualification to do business in each jurisdiction
in which such qualification is or shall be necessary to protect the validity and
enforceability of the Basic Documents and each other instrument or agreement
necessary or appropriate to the proper administration of this Agreement and the
transactions contemplated

                                       48
<PAGE>

hereby. In addition, all transactions and dealings between the Seller and its
Affiliates (including the Issuer) will be conducted on an arm's length basis.

     SECTION 6.03 LIABILITY OF SELLER; INDEMNITIES. The Seller shall be liable
in accordance herewith only to the extent of the obligations specifically
undertaken by the Seller under this Agreement.

     (a) The Seller shall indemnify, defend and hold harmless the Issuer, the
Owner Trustee, the Indenture Trustee and the Servicer and any of the officers,
directors, employees and agents of the Issuer, the Owner Trustee and the
Indenture Trustee from and against any taxes that may at any time be asserted
against any such Person with respect to the transactions contemplated herein and
in the Basic Documents, including any sales, gross receipts, general
corporation, tangible personal property, privilege or license taxes (but, in the
case of the Issuer, not including any taxes asserted with respect to, and as of
the date of, the sale of the Receivables to the Issuer or the issuance and
original sale of the Certificate or any of the Notes, or asserted with respect
to ownership of the Receivables or federal or other income taxes arising out of
payments or distributions on the Certificate or the Notes) and costs and
expenses in defending against the same.

     (b) The Seller shall indemnify, defend and hold harmless the Issuer, the
Owner Trustee, the Indenture Trustee, the Issuer, the Certificateholder and the
Noteholders and any of the officers, directors, employees and agents of the
Issuer, the Owner Trustee and the Indenture Trustee from and against any loss,
liability or expense incurred by reason of (i) the Seller's willful misfeasance,
bad faith or negligence in the performance of its duties under this Agreement,
or by reason of reckless disregard of its obligations and duties under this
Agreement and (ii) the Seller's or the Issuer's violation of federal or state
securities laws in connection with the offering and sale of any of the Notes or
the Certificate.

     (c) Except as set forth in clause (a) above, the Seller shall pay any and
all taxes levied or assessed upon all or any part of the Owner Trust Estate.

     (d) Promptly after receipt by a party indemnified under this Section 6.03
(an "Indemnified Party") of notice of the commencement of any action, such
Indemnified Party will, if a claim in respect thereof is to be made against the
party providing indemnification under this Section 6.03 (an "Indemnifying
Party"), notify such Indemnifying Party of the commencement thereof. In case any
such action is brought against any Indemnified Party under this Section 6.03 and
it notifies the Indemnifying Party of the commencement thereof, the Indemnifying
Party will assume the defense thereof, with counsel reasonably satisfactory to
such Indemnified Party (who may, unless there is, as evidenced by an opinion of
counsel to the Indemnified Party stating that there is an unwaivable conflict of
interest, be counsel to the Indemnifying Party), and the Indemnifying Party will
not be liable to such Indemnified Party under this Section for any legal or
other expenses subsequently incurred by such Indemnified Party in connection
with the defense thereof, other than reasonable costs of investigation. The
obligations set forth in this Section 6.03 shall survive the termination of this
Agreement or the resignation or removal of the Owner Trustee or the Indenture
Trustee and shall include reasonable fees and expenses of counsel and expenses
of litigation. If the Seller shall have made any indemnity payments pursuant to
this Section and the Person to or on behalf of whom such payments are made

                                       49
<PAGE>

thereafter collects any of such amounts from others, such Person shall promptly
repay such amounts to the Seller, without interest.

     SECTION 6.04 MERGER OR CONSOLIDATION OF, OR ASSUMPTION OF THE OBLIGATIONS
OF, SELLER. Any Person (a) into which the Seller may be merged or consolidated,
(b) which may result from any merger or consolidation to which the Seller shall
be a party or (c) which may succeed to the properties and assets of the Seller
substantially as a whole, which person in any of the foregoing cases executes an
agreement of assumption to perform every obligation of the Seller under this
Agreement, shall be the successor to the Seller hereunder without the execution
or filing of any document or any further act by any of the parties to this
Agreement; provided, however, that (i) immediately after giving effect to such
transaction, no representation or warranty made pursuant to Section 6.01 shall
have been breached (except that the representations regarding the due
organization and valid existence of the successor may be deemed to reference
jurisdictions other than California), (ii) the Seller shall have delivered to
the Owner Trustee and the Indenture Trustee an Officer's Certificate and an
Opinion of Counsel each stating that such consolidation, merger or succession
and such agreement of assumption comply with this Section and that all
conditions precedent, if any, provided for in this Agreement relating to such
transaction have been complied with, (iii) the Seller shall have given 10 days'
written notice to each Rating Agency of its intent or expectation to enter such
transaction and neither Rating Agency shall have notified the Seller, the Owner
Trustee or the Indenture Trustee that such transaction might or would cause it
to reduce, withdraw or modify its then current rating of any Class of Notes and
(iv) the Seller shall have delivered to the Owner Trustee and the Indenture
Trustee an Opinion of Counsel either (A) stating that, in the opinion of such
counsel, 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 Owner Trustee and Indenture Trustee, respectively,
in the Receivables and reciting the details of such filings, or (B) stating
that, in the opinion of such counsel, no such action shall be necessary to
preserve and protect such interests. Notwithstanding anything herein to the
contrary, the execution of the foregoing agreement of assumption and compliance
with clauses (i), (ii), (iii) and (iv) above shall be conditions to the
consummation of the transactions referred to in clauses (a), (b) or (c) above.

     SECTION 6.05 LIMITATION ON LIABILITY OF SELLER AND OTHERS. The Seller and
any director, officer, employee or agent of the Seller may rely in good faith on
the advice of counsel or on any document of any kind, prima facie properly
executed and submitted by any Person respecting any matters arising hereunder.
The Seller shall not be under any obligation to appear in, prosecute or defend
any legal action that shall not be incidental to its obligations under this
Agreement and that in its opinion may involve it in any expense or liability.

     SECTION 6.06 SELLER MAY OWN CERTIFICATE OR NOTES. The Seller will own the
Certificate, and the Seller and any Affiliate thereof may in its individual or
any other capacity become the owner or pledgee of the Notes of any class with
the same rights as it would have if it were not the Seller or an Affiliate
thereof, except as expressly provided in any Basic Document.

                                       50
<PAGE>

                                  ARTICLE VII

                                  THE SERVICER

     SECTION 7.01 REPRESENTATIONS OF SERVICER. The Servicer makes the following
representations on which the Issuer is deemed to have relied in acquiring the
Receivables. The representations speak as of the execution and delivery of this
Agreement and as of the Closing Date and shall 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 Servicer shall have been duly
organized and shall be validly existing as a corporation in good standing under
the laws of the State of California, with corporate power and authority to own
its properties and to conduct its business as such properties shall be currently
owned and such business is presently conducted, and had at all relevant times,
and shall now have, corporate power, authority and legal right to acquire, own
and sell the Receivables.

     (b) DUE QUALIFICATION. The Servicer shall be duly qualified to do business
as a foreign corporation in good standing, and shall have obtained all necessary
licenses and approvals in all jurisdictions in which the ownership or lease of
property or the conduct of its business shall require such qualifications and
where the failure to so qualify will have a material adverse effect on the
ability of the Servicer to conduct its business or perform its obligations under
this Agreement.

     (c) POWER AND AUTHORITY. The Servicer shall have the corporate power and
authority to execute and deliver this Agreement and to carry out its terms; and
the execution, delivery and performance of this Agreement have been duly
authorized by the Servicer by all necessary corporate action.

     (d) BINDING OBLIGATIONS. This Agreement shall constitute a legal, valid and
binding obligation of the Servicer enforceable in accordance with its terms,
except as enforceability may be limited by bankruptcy, insolvency,
reorganization or other similar laws affecting creditors' rights generally or by
general equity principles.

     (e) NO VIOLATION. The consummation of the transactions contemplated by this
Agreement and the fulfillment of the terms of this Agreement shall not conflict
with, result in any breach of any of the terms and provisions of, nor 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 or other
instrument to which the Servicer is a party or by which it shall be bound; nor
result in the creation or imposition of any Lien upon any of its properties
pursuant to the terms of any such indenture, agreement or other instrument
(other than this Agreement), nor violate any law or, to the best of the
Servicer's knowledge, any order, rule or regulation applicable to the Servicer
of any court or of any federal or state regulatory body, administrative agency
or other governmental instrumentality having jurisdiction over the Servicer or
its properties which breach, default, conflict, lien or violation would have a
material adverse effect on the earnings, business affairs or business prospects
of the Servicer.

                                       51
<PAGE>

     (f) NO PROCEEDINGS. There is no action, suit or proceeding before or by any
court or governmental agency or body, domestic or foreign, now pending, or to
the Servicer's knowledge, threatened, against or affecting the Servicer: (i)
asserting the invalidity of this Agreement, the Trust Agreement, the Indenture,
the Certificate or the Notes, (ii) seeking to prevent the issuance of the
Certificate or the Notes or the consummation of any of the transactions
contemplated by this Agreement, the Trust Agreement or the Indenture, (iii)
seeking any determination or ruling that might materially and adversely affect
the performance by the Servicer of its obligations under, or the validity or
enforceability of, this Agreement, the Trust Agreement, the Indenture, the
Certificate or the Notes, or (iv) relating to the Servicer and which might
adversely affect the federal income tax attributes of the Issuer, the
Certificate or the Notes.

     SECTION 7.02 INDEMNITIES OF SERVICER. The Servicer shall be liable in
accordance herewith only to the extent of the obligations specifically
undertaken by the Servicer under this Agreement:

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

     (b) The Servicer shall indemnify, defend and hold harmless the Owner
Trustee and the Indenture Trustee and their respective officers, directors,
employees and agents from and against all costs, expenses, losses, claims,
damages and liabilities arising out of or incurred in connection with the
acceptance or performance of the trusts and duties herein and in the Trust
Agreement contained, in the case of the Owner Trustee, and in the Indenture
contained, in the case of the Indenture Trustee, except to the extent that such
cost, expense, loss, claim, damage or liability: (i) in the case of the Owner
Trustee, shall be due to the willful misfeasance, bad faith or negligence
(except for errors in judgment) of the Owner Trustee or, in the case of the
Indenture Trustee, shall be due to the willful misfeasance, bad faith or
negligence (except for errors in judgment) of the Indenture Trustee; or (ii) in
the case of the Owner Trustee, shall arise from the breach by the Owner Trustee
of any of its representations or warranties set forth in Section 7.03 of the
Trust Agreement.

     (c) The Servicer shall indemnify, defend and hold harmless the Seller, the
Issuer, the Owner Trustee, the Indenture Trustee, the Certificateholder and the
Noteholders and any of the officers, directors, employees and agents of the
Seller, the Issuer, the Owner Trustee, the Indenture Trustee and the
Certificateholder from and against any and all costs, expenses, losses, claims,
damages and liabilities (including without limitation reasonable fees and
expenses of counsel) to the extent that such cost, expense, loss, claim, damage
or liability arose out of, or is imposed upon any such Person through, the
negligence, willful misfeasance or bad faith of the Servicer in the performance
of its duties under this Agreement or by reason of reckless disregard of its
obligations and duties under this Agreement, including those that may be
incurred by any such indemnified party as a result of any act or omission by the
Servicer in connection with its maintenance and custody of the Receivables
Files.

                                       52
<PAGE>

     (d) Promptly after receipt by a party indemnified under this Section 7.02
(an "Indemnified Party") of notice of the commencement of any action, such
Indemnified Party will, if a claim in respect thereof is to be made against the
party providing indemnification under this Section 7.02 (an "Indemnifying
Party"), notify such Indemnifying Party of the commencement thereof. In case any
such action is brought against any Indemnified Party under this Section 7.02 and
it notifies the Indemnifying Party of the commencement thereof, the Indemnifying
Party will assume the defense thereof, with counsel reasonably satisfactory to
such Indemnified Party (who may, unless there is, as evidenced by an opinion of
counsel to the Indemnified Party stating that there is an unwaivable conflict of
interest, be counsel to the Indemnifying Party), and the Indemnifying Party will
not be liable to such Indemnified Party under this Section for any legal or
other expenses subsequently incurred by such Indemnified Party in connection
with the defense thereof, other than reasonable costs of investigation. The
obligations set forth in this Section 7.02 shall survive the termination of this
Agreement or the resignation or removal of the Servicer, the Owner Trustee or
the Indenture Trustee and shall include reasonable fees and expenses of counsel
and expenses of litigation. If the Servicer shall have made any indemnity
payments pursuant to this Section and the Person to or on behalf of whom such
payments are made thereafter collects any of such amounts from others, such
Person shall promptly repay such amounts to the Servicer, without interest.

     For purposes of this Section, in the event of the termination of the rights
and obligations of TMCC (or any successor thereto pursuant to Section 7.03) as
Servicer pursuant to Section 8.01, or a resignation by such Servicer pursuant to
this Agreement, such Servicer shall be deemed to be the Servicer pending
appointment of a successor Servicer (other than the Indenture Trustee) pursuant
to Section 8.02.

     SECTION 7.03 MERGER OR CONSOLIDATION OF, OR ASSUMPTION OF THE OBLIGATIONS
OF, SERVICER. Any corporation (a) into which the Servicer may be merged or
consolidated, (b) which may result from any merger, conversion or consolidation
to which the Servicer shall be a party or (c) which may succeed to all or
substantially all of the business of the Servicer, which corporation in any of
the foregoing cases executes an agreement of assumption to perform every
obligation of the Servicer under this Agreement, shall 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; provided,
however, that (i) immediately after giving effect to such transaction, no
representation or warranty made pursuant to Section 7.01 shall have been
breached (except that the representations regarding the due organization and
valid existence of the successor may be deemed to reference jurisdictions other
than California), and no Servicer Default, and no event which, after notice or
lapse of time, or both, would become a Servicer Default, shall have occurred and
be continuing, (ii) the Servicer shall have delivered to the Owner Trustee and
the Indenture Trustee an Officer's Certificate and an Opinion of Counsel each
stating that such consolidation, merger or succession and such agreement of
assumption comply with this Section and that all conditions precedent provided
for in this Agreement relating to such transaction have been complied with,
(iii) the Servicer shall have given 10 days' written notice to each Rating
Agency of its intent or expectation to enter such transaction and neither Rating
Agency shall have notified the Seller, the Owner Trustee or the Indenture
Trustee that such transaction might or would cause it to reduce, withdraw or
modify its then current rating of any Class of Notes, (iv) immediately after
giving effect to such transaction, the successor to the Servicer shall become
the Administrator under the Administration Agreement in

                                       53
<PAGE>

accordance with Section 8 of such Agreement and (v) the Servicer shall have
delivered to the Owner Trustee and the Indenture Trustee 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
Owner Trustee and the Indenture Trustee, respectively, in the Receivables and
reciting the details of such filings or (B) no such action shall be necessary to
preserve and protect such interests. Notwithstanding anything herein to the
contrary, the execution of the foregoing agreement of assumption and compliance
with clauses (i), (ii), (iii), (iv) and (v) above shall be conditions to the
consummation of the transactions referred to in clause (a), (b) or (c) above.

     SECTION 7.04 LIMITATION ON LIABILITY OF SERVICER AND OTHERS. Neither the
Servicer nor any of the directors, officers, employees or agents of the Servicer
shall be under any liability to the Seller, the Issuer, the Indenture Trustee,
the Owner Trustee, the Noteholders or the Certificateholder, except as provided
under this Agreement, for any action taken or for refraining from the taking of
any action pursuant to this Agreement or for errors in judgment; provided,
however, that this provision shall not protect the Servicer or any such person
against any liability that would otherwise be imposed by reason of willful
misfeasance, bad faith or negligence in the performance of duties or by reason
of reckless disregard of obligations and duties under this Agreement. The
Servicer and any director, officer, employee or agent of the Servicer may rely
in good faith on any document of any kind prima facie properly executed and
submitted by any person respecting any matters arising under this Agreement.

     Except as provided in this Agreement, the Servicer shall not be under any
obligation to appear in, prosecute or defend any legal action that shall not be
incidental to its duties to service the Receivables in accordance with this
Agreement, and that in its opinion may involve it in any expense or liability;
PROVIDED, HOWEVER, that the Servicer may (with the written consent of the Owner
Trustee or Indenture Trustee) undertake any reasonable action that it may deem
necessary or desirable in respect of the Basic Documents and the rights and
duties of the parties to the Basic Documents and the interests of the
Certificateholder under this Agreement and the Noteholders under the Indenture.
In such event, the reasonable legal expenses and costs for such action and any
liability resulting therefrom shall be expenses, costs and liabilities of the
Trust Estate (if any Notes are then outstanding) or the Owner Trust Estate (if
no Notes are then outstanding) and the Servicer will be entitled to be
reimbursed therefor solely from Available Collections.

     SECTION 7.05 TMCC NOT TO RESIGN AS SERVICER. Subject to the provisions of
Section 7.03, TMCC shall not resign from the obligations and duties hereby
imposed on it as Servicer under this Agreement except upon a determination that
the performance of its duties under this Agreement shall no longer be
permissible under applicable law. Notice of any such determination permitting
the resignation of TMCC shall be communicated to the Owner Trustee, the
Indenture Trustee and each Rating Agency at the earliest practicable time (and,
if such communication is not in writing, shall be confirmed in writing at the
earliest practicable time) and any such determination shall be evidenced by an
Opinion of Counsel to such effect delivered to the Owner Trustee and the
Indenture Trustee concurrently with or promptly after such notice. No such
resignation shall become effective until the Indenture Trustee or a successor
Servicer shall have (i) assumed the responsibilities and obligations of TMCC in
accordance with Section

                                       54
<PAGE>

8.02 and (ii) become the Administrator under the Administration Agreement in
accordance with Section 8 of such Agreement.

                                  ARTICLE VIII

                                     DEFAULT

     SECTION 8.01 SERVICER DEFAULT. Each of the following events is a "Servicer
Default":

     (a) any failure by the Servicer (or the Seller, so long as TMCC is the
Servicer) to deliver to the Relevant Trustee for deposit in the Collection
Account, Payahead Account or Reserve Fund any required payment or to direct the
Relevant Trustee to make any required payment or distribution therefrom, which
failure continues unremedied for a period of three Business Days after discovery
of the failure by an officer of the Servicer or written notice of such failure
is received (i) by the Servicer (or the Seller, so long as TMCC is the Servicer)
from the Owner Trustee or the Indenture Trustee or (ii) to the Seller or the
Servicer, as the case may be, and to the applicable Owner Trustee and Indenture
Trustee by the Holders of Notes evidencing not less than 25% of the Class A
Notes, acting as a single Class, excluding for purposes of such calculation and
action all Securities held or beneficially owned by TMCC, TMCRC or any of their
Affiliates (provided that such event will not be a Servicer Default if (A) such
failure or delay is caused by an event of force majeure, (B) does not continue
for more than 10 Business Days, (C) during such period the Servicer uses all
commercially reasonable efforts to perform its obligations under this Agreement
and (D) the Servicer provides to the Owner Trustee, Indenture Trustee, Seller
and Securityholders prompt notice of such failure or delay that includes a
description of the Servicer's efforts to remedy such failure or delay);

     (b) failure by the Servicer or the Seller, as the case may be, duly to
observe or to perform in any material respect any other covenants or agreements
of the Servicer or the Seller (as the case may be) set forth in this Agreement,
which failure shall materially and adversely affect the rights of
Certificateholder or Noteholders and shall continue unremedied for a period of
90 days after the date on which written notice of such failure is received (i)
by the Servicer (or the Seller, so long as TMCC is the Servicer) from the Owner
Trustee or the Indenture Trustee or (ii) to the Seller or the Servicer, as the
case may be, and to the Owner Trustee and Indenture Trustee by the holders of
Notes evidencing not less than 25% of the Class A Notes, acting together as a
single Class, excluding for purposes of such calculation and action all
Securities held or beneficially owned by TMCC, TMCRC or any of their Affiliates;
or

     (c) the occurrence of an Insolvency Event with respect to the Servicer.

At any time when a Servicer Default has occurred and is continuing, so long as
the Servicer Default shall not have been remedied, either the Indenture Trustee
or the Holders of Notes evidencing not less than 51% of the Outstanding Amount
of the Class A Notes acting as a single Class, excluding for purposes of such
calculation and action all Securities held or beneficially owned by TMCC, TMCRC
or any of their Affiliates, by notice then given in writing to the Servicer (and
to the Indenture Trustee and the Owner Trustee if given by the Noteholders) may
terminate all the rights and obligations (other than the obligations set forth
in Section 7.02 hereof and the rights set forth in Section 7.04 hereof) of the
Servicer under this Agreement. By the

                                       55
<PAGE>

same required vote, the Noteholders specified in the prior sentence may waive
any such Servicer Default (other than a default in the making of any required
deposits or payments from or to the Collection Account, Reserve Account or
Payahead Account) for a specified period or permanently. Upon any such waiver of
a past default, such default shall cease to exist, and any Servicer Default
arising therefrom shall be deemed to have been remedied for every purpose of
this Agreement. No such waiver shall extend to any subsequent or other default
or impair any right consequent thereto.

     SECTION 8.02 APPOINTMENT OF SUCCESSOR.

     (a) Upon the Servicer's receipt of notice of termination pursuant to
Section 8.01 or the Servicer's resignation in accordance with the terms of this
Agreement, the predecessor Servicer shall continue to perform its functions as
Servicer under this Agreement, in the case of termination, only until the date
specified in such termination notice or, if no such date is specified in a
notice of termination, until receipt of such notice and, in the case of
resignation, until the later of (i) the date 45 days from the delivery to the
Owner Trustee and the Indenture Trustee of written notice of such resignation
(or written confirmation of such notice) in accordance with the terms of this
Agreement and (ii) the date upon which the predecessor Servicer shall become
unable to act as Servicer, as specified in the notice of resignation and
accompanying Opinion of Counsel. In the event of the Servicer's termination
hereunder, the Indenture Trustee shall appoint a Successor Servicer, and the
Successor Servicer shall accept its appointment (including its appointment as
Administrator under the Administration Agreement as set forth in Section
8.02(b)) by a written assumption in form acceptable to the Owner Trustee and the
Indenture Trustee. In the event that a Successor Servicer has not been appointed
at the time when the predecessor Servicer has ceased to act as Servicer in
accordance with this Section, the Indenture Trustee without further action shall
automatically be appointed the Successor Servicer and the Indenture Trustee
shall be entitled to the Servicing Fee. Notwithstanding the above, the Indenture
Trustee shall, if it shall be unwilling or legally unable so to act, appoint or
petition a court of competent jurisdiction to appoint any established
institution having a net worth of not less than $50,000,000 and whose regular
business shall include the servicing of automobile and/or light-duty truck
receivables, as the successor to the Servicer under this Agreement. In
connection therewith, the Indenture Trustee is authorized and empowered to offer
such successor servicer compensation up to, but not in excess of, the Total
Servicing Fee and other servicing compensation specified in this Agreement as
payable to the initial Servicer. Upon such appointment, the Indenture Trustee
will be released from the duties and obligations of acting as Successor
Servicer, such release effective upon the effective date of the servicing
agreement entered into between the Successor Servicer and the Issuer.

     (b) Upon appointment, the successor Servicer (including the Indenture
Trustee acting as successor Servicer) shall (i) be the successor in all respects
to the predecessor Servicer and shall be subject to all the responsibilities,
duties and liabilities arising thereafter relating thereto placed on the
predecessor Servicer and shall be entitled to the Servicing Fee and all the
rights granted to the predecessor Servicer by the terms and provisions of this
Agreement and (ii) become the Administrator under the Administration Agreement
in accordance with Section 8 of such Agreement.

                                       56

<PAGE>

     (c) On or after the receipt by the Servicer of written notice of
termination pursuant to Section 8.01, all authority and power of the Servicer
under this Agreement, whether with respect to the Notes, the Certificate or the
Receivables or otherwise, shall, without further action, pass to and be vested
in the Indenture Trustee or such Successor Servicer as may be appointed under
this Section 8.02 and, without limitation, the Indenture Trustee and the Owner
Trustee are hereby authorized and empowered to execute and deliver, for the
benefit of the predecessor Servicer, as attorney-in-fact or otherwise, any and
all documents and other instruments, and to do or accomplish all other acts or
things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement of the Receivables
and related documents, or otherwise. The predecessor Servicer shall cooperate
with the Successor Servicer and the Owner Trustee in effecting the termination
of the responsibilities and rights of the predecessor Servicer under this
Agreement, including, without limitation, the transfer to the Successor Servicer
for administration by it of all cash amounts that shall at the time be held by
the predecessor Servicer for deposit, or have been deposited by the predecessor
Servicer, in the Collection Account or Payahead Account or thereafter received
with respect to the Receivables and all Payments Ahead that shall at that time
be held by the predecessor Servicer. All reasonable costs and expenses
(including attorneys' fees) incurred in connection with transferring the
Receivable Files to the Successor Servicer and amending this Agreement to
reflect such succession as Servicer pursuant to this Section shall be paid by
the predecessor Servicer upon presentation of reasonable documentation of such
costs and expenses. In the event that the Indenture Trustee succeeds to the
rights and obligations of the Servicer hereunder, and a subsequent transfer of
such rights and obligations is effected pursuant to Section 8.01 or this Section
8.02 hereof, the original Servicer hereunder shall reimburse the Indenture
Trustee for all reasonable costs and expenses as described in the immediately
preceding sentence. Upon receipt of notice of the occurrence of a Servicer
Default, the Indenture Trustee shall give notice thereof to the Rating Agencies.

     SECTION 8.03 REPAYMENT OF ADVANCES; COMPENSATION PAYABLE. If the Servicer
shall resign or be terminated, the Servicer shall continue to be entitled to
receive reimbursement for Outstanding Advances pursuant to Sections 5.03 and
5.04 with respect to all Advances previously made thereby in the manner
specified in such Sections, and shall continue to be entitled to all accrued and
unpaid compensation payable to the Servicer through the date of such termination
as specified in Section 4.09 of this Agreement.

     SECTION 8.04 NOTIFICATION. Upon any termination of, or appointment of a
successor to, the Servicer pursuant to this Article VIII, the Owner Trustee
shall give prompt written notice thereof to Certificateholder, and the Indenture
Trustee shall give prompt written notice thereof to Noteholders, the Swap
Counterparty and the Rating Agencies.

                                   ARTICLE IX

                                   TERMINATION

     SECTION 9.01 OPTIONAL PURCHASE OF ALL RECEIVABLES.

     (a) On each Payment Date following the last day of a Collection Period as
of which the Pool Balance shall be less than the Optional Purchase Percentage
(expressed as a seven-digit

                                       57

<PAGE>

decimal figure) multiplied by the Original Pool Balance, the Servicer, or any
successor to the Servicer, shall have the option to purchase the corpus of the
Owner Trust Estate (whether or not such assets then comprise all or a portion of
the Trust Estate) for an amount equal to the Optional Purchase Price. To
exercise such option, the Servicer, or any successor to the Servicer, shall
notify the Swap Counterparty, the Owner Trustee and the Indenture Trustee of its
intention to do so in writing, no later than the tenth day of the month
preceding the month in which the Payment Date as of which such purchase is to be
effected and shall, on or before the Payment Date on which such purchase is to
occur, deposit pursuant to Section 5.05 in the Collection Account an amount
equal to the Optional Purchase Price, and shall succeed to all interests in and
to the Trust Estate and the Owner Trust Estate. Amounts so deposited will be
paid and distributed as set forth in Section 5.06 of this Agreement. Upon such
deposit of the amount necessary to purchase the corpus of the Owner Trust
Estate, the Servicer shall for all purposes of this Agreement be deemed to have
released all claims for reimbursement of Outstanding Advances made in respect of
the Receivables.

     (b) Notice of any such purchase of the Owner Trust Estate shall be given by
the Owner Trustee and the Indenture Trustee to each Securityholder and the Swap
Counterparty as soon as practicable after their receipt of notice thereof from
the Servicer.

     (c) Following the satisfaction and discharge of the Indenture and the
payment in full of the principal of and interest on the Notes, the
Certificateholder will succeed to the rights of the Noteholders under this
Agreement other than Section 5.06 and the Owner Trustee will succeed to the
rights of, and assume the obligations of, the Indenture Trustee provided for in
this Agreement.

     (d) Upon the repurchase of any Receivable by the Seller or the Servicer,
pursuant to any provision hereof (including Sections 3.02, 4.08 and 9.01(a)),
the Owner Trustee on behalf of the Issuer and the Certificateholder, and the
Indenture Trustee on behalf of the Noteholders, shall, without further action,
be deemed to transfer, assign, set-over and otherwise convey to the Seller or
the Servicer, as the case may be, all right, title and interest of the Owner
Trustee on behalf of the Issuer in, to and under such repurchased Receivable,
all monies due or to become due with respect thereto and all proceeds thereof
and the other property conveyed to the Issuer hereunder pursuant to Section 2.01
with respect to such Receivable, and all security and any documents relating
thereto, such assignment being an assignment outright and not for security; and
the Seller or the Servicer, as applicable, shall thereupon own each such
Receivable, and all such related security and documents, free of any further
obligation to the Issuer, the Owner Trustee, the Certificateholder, the
Indenture Trustee or the Noteholders with respect thereto. The Owner Trustee and
Indenture Trustee shall execute such documents and instruments of transfer and
assignment and take such other actions as shall be reasonably requested by the
Seller or the Servicer, as the case may be, to effect the conveyance of such
Receivable pursuant to this Section. If in any enforcement suit or legal
proceeding it is held that the Seller or Servicer may not enforce a repurchased
Receivable on the ground that it is not a real party in interest or a holder
entitled to enforce the Receivable, the Owner Trustee on behalf of the Issuer
and the Certificateholder, and the Indenture Trustee on behalf of the
Noteholders shall, at the written direction and expense of the Seller or
Servicer, as the case may be, take such reasonable steps as the Seller or
Servicer deems necessary to enforce the Receivable, including bringing suit in
the name or names of the Issuer, Certificateholder or Noteholders.

                                       58
<PAGE>

     SECTION 9.02 TERMINATION OF THE TRUST AGREEMENT. The respective obligations
and responsibilities of the Issuer, the Seller and the Servicer under this
Agreement shall terminate upon the termination of the Trust Agreement pursuant
to Article IX of the Trust Agreement.

                                   ARTICLE X

                                  MISCELLANEOUS

     SECTION 10.01 AMENDMENT. This Agreement may be amended by the Seller, the
Servicer and the Issuer, with the consent of the Indenture Trustee, but without
the consent of any of the Noteholders or the Certificateholder, to cure any
ambiguity, to correct or supplement any provisions in this Agreement or for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions in this Agreement or of modifying in any manner the rights of
the Noteholders or the Certificateholder; PROVIDED, HOWEVER, that such action
shall not, as evidenced by an Opinion of Counsel delivered to the Owner Trustee
and the Indenture Trustee, adversely affect in any material respect the
interests of any Noteholder or Certificateholder. This Agreement may also be
amended by the Seller, the Servicer and the Issuer, with the consent of the
Indenture Trustee, but without the consent of any of the Noteholders or the
Certificateholder for the purpose of changing the formula for determining the
Specified Reserve Account Balance, the manner in which the Reserve Account is
funded (i.e. to allow the deposit of cash therein by any Person, but not to
change any order of priority of payments and distributions specified in Section
5.06 of the Sale and Servicing Agreement), changing the remittance schedule for
the deposit of collections with respect to the Receivables in the Collection
Account or Payahead Account pursuant to Section 5.02 hereof or changing the
definition of Eligible Investment, in each case only if the Indenture Trustee
and/or the Owner Trustee, as the case may be, (i) has received a letter from
Standard & Poor's to the effect that Standard & Poor's will not qualify, reduce
or withdraw the rating it has currently assigned to any Class of Notes as a
result of such amendment and (ii) has provided Moody's with 10 days prior
written notice of such amendment and Moody's shall not have notified the
Indenture Trustee and/or the Owner Trustee, as the case may be, that such
amendment might or would result in the qualification, reduction or withdrawal of
the rating it has currently assigned to any Class of Notes; provided that no
such amendment may increase or reduce in any manner or accelerate or delay the
timing of collections on the Receivables or payments required to be made to
Holders of any Class of Notes or of the Certificate without the consent of all
Holders of each affected Class or the Certificateholder, if affected.

     This Agreement may also be amended from time to time by the Seller, the
Servicer and the Issuer, with the consent of the Indenture Trustee, the consent
of (A) if the interests of Indenture Trustee or the Noteholders are affected,
the Holders of Notes evidencing not less than 51% of the outstanding Principal
Balance of each affected Class of Notes, acting as a single Class but excluding
for purposes of such calculation and action all Securities held or beneficially
owned by TMCC, TMCRC or any of their Affiliates, (B) if the interests of the
Issuer, Owner Trustee or Certificateholder are affected, the Holder of the
Certificate and/or (C) if the interests of the Swap Counterparty are affected,
the Swap Counterparty, for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Agreement

                                       59
<PAGE>

or of modifying in any manner the rights of such Noteholders or of the
Certificateholder; PROVIDED, HOWEVER, that no such amendment may (i) increase or
reduce in any manner the amount of, or accelerate or delay the timing of,
collections of payments on the related Receivables or payments required to be
made to Holders of any Class of Notes or the Certificateholder without the
consent of all Holders of each affected Class of Notes or the Certificateholder,
as the case may be, or (ii) reduce the aforesaid percentage of the Notes or the
aforesaid Certificateholder required to consent to any such amendment, without
the consent of the Holders of each Class of Notes or of the Certificate, as the
case may be, affected thereby.

     Promptly after the execution of any such amendment or consent, the Owner
Trustee shall furnish written notification of the substance of such amendment or
consent to each Certificateholder, the Indenture Trustee, the Swap Counterparty
(unless TMCC or an Affiliate thereof is the Servicer and the Swap Counterparty
at the time of delivery) and each of the Rating Agencies.

     It shall not be necessary for the consent of the Certificateholder or
Noteholders pursuant to this Section to approve the particular form of any
proposed amendment or consent, but it shall be sufficient if such consent shall
approve the substance thereof.

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

     SECTION 10.02 PROTECTION OF TITLE TO TRUST.

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

     (b) Neither the Seller nor the Servicer shall change its name, identity or
corporate structure in any manner that would, could or might make any financing
statement or continuation statement filed in accordance with paragraph (a) above
seriously misleading within the meaning of Section 9-402(7) of the UCC, unless
it shall have given the Owner Trustee and the Indenture Trustee at least five
days' prior written notice thereof and shall have promptly filed appropriate
amendments to all previously filed financing statements or continuation
statements.

     (c) Each of the Seller and the Servicer shall have an obligation to give
the Owner Trustee and the Indenture Trustee at least 60 days' prior written
notice of any relocation of its principal executive office if, as a result of
such relocation, the applicable provisions of the UCC

                                       60
<PAGE>

would require the filing of any amendment of any previously filed financing or
continuation statement or of any new financing statement and shall promptly file
any such amendment or new financing statement. The Servicer shall at all times
maintain each office from which it shall service Receivables, and its principal
executive office, within the United States of America.

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

     (e) The Servicer shall maintain its computer systems so that, from and
after the time of sale under this Agreement of the Receivables, the Servicer's
master computer records (including any backup archives) that refer to any
Receivable shall indicate clearly the interest of the Issuer, the Owner Trustee
and the Indenture Trustee in such Receivable and that such Receivable is owned
by the Issuer and has been pledged to the Indenture Trustee. Indication of these
respective interests in a Receivable shall be deleted from or modified on the
Servicer's computer systems when, and only when, the related Receivable shall
have become a Liquidated Receivable or been repurchased.

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

     (g) Upon request, the Servicer shall furnish to 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 Owner Trust
Estate, 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 Owner Trust Estate.

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

          (A) promptly after the execution and delivery of this Agreement and,
     if required pursuant to Section 10.01, of each amendment hereto, an Opinion
     of Counsel stating that, in the opinion of such counsel, 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
     Owner Trustee 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 shall be necessary to
     preserve and protect such interest, in each case also specifying any action
     necessary (as of the date of such opinion) to be taken in the following
     year to preserve and protect such interest; and

                                       61
<PAGE>

          (B) within 90 days after the beginning of each calendar year beginning
     with the first calendar year beginning more than three months after the
     Cutoff Date, an Opinion of Counsel, dated as of a date during such 90-day
     period, stating that, in the opinion of such counsel, 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
     Owner Trustee 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 shall be necessary to
     preserve and protect such interest.

     SECTION 10.03 NOTICES. All demands, notices, communications and
instructions upon or to the Seller, the Servicer, the Owner Trustee, the
Indenture Trustee or the Rating Agencies under this Agreement shall be in
writing, personally delivered or mailed by certified mail, return receipt
requested, and shall be deemed to have been duly given upon receipt (a) in the
case of the Servicer, to Toyota Motor Credit Corporation, 19001 S. Western
Avenue, Torrance, California 90509, Attention: Vice President, Treasury (310)
468-4001), (b) in the case of the Seller, to Toyota Motor Credit Receivables
Corporation, 19300 Gramercy Place, North Building, Torrance, California 90509,
Attention: President (310) 468-7332), (c) in the case of the Issuer or the Owner
Trustee, at the Corporate Trust Office (as defined in the Trust Agreement), (d)
in the case of the Indenture Trustee, at the Corporate Trust Office specified in
the Indenture, (e) in the case of Moody's, to Moody's Investors Service, Inc.,
ABS Monitoring Department, 99 Church Street, New York, New York 10007, (f) in
the case of Standard & Poor's, to Standard & Poor's Ratings Services, a division
of The McGraw-Hill Companies, 55 Water Street, New York, New York 10041,
Attention of Asset Backed Surveillance Department; or, as to each of the
foregoing, at such other address as shall be designated by written notice to the
other parties.

     SECTION 10.04 ASSIGNMENT BY THE SELLER OR THE SERVICER. Notwithstanding
anything to the contrary contained herein, except as provided in Sections 6.04
and 7.03 of this Agreement and as provided in the provisions of this Agreement
concerning the resignation or termination of the Servicer, this Agreement may
not be assigned by the Seller or the Servicer.

     SECTION 10.05 LIMITATIONS ON RIGHTS OF OTHERS. The provisions of this
Agreement are solely for the benefit of the Seller, the Servicer, the Issuer,
the Owner Trustee, the Certificateholder, the Indenture Trustee and the
Noteholders, and nothing in this Agreement, whether express or implied, shall be
construed to give to any other Person any legal or equitable right, remedy or
claim in the Owner Trust Estate or under or in respect of this Agreement or any
covenants, conditions or provisions contained herein.

     SECTION 10.06 SEVERABILITY. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     SECTION 10.07 SEPARATE COUNTERPARTS. This Agreement may be executed by the
parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument.

                                       62
<PAGE>

     SECTION 10.08 HEADINGS. The headings of the various Articles and Sections
herein are for convenience of reference only and shall not define or limit any
of the terms or provisions hereof.

     SECTION 10.09 GOVERNING LAW. This Agreement shall be construed in
accordance with the laws of the State of California, without reference to its
conflict of law provisions, and the obligations, rights and remedies of the
parties hereunder shall be determined in accordance with such laws.

     SECTION 10.10 ASSIGNMENT BY ISSUER. The Seller 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 or under the Interest Rate Swap Agreement to the Indenture
Trustee.

     SECTION 10.11 NONPETITION COVENANTS.

     (a) Notwithstanding any prior termination of this Agreement, the Servicer
and the Seller shall not, prior to the date which is one year and one day after
the termination of this Agreement with respect to the Issuer, 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 prior termination of this Agreement, the Servicer
shall not, prior to the date which is one year and one day after the termination
of this Agreement with respect to the Seller, acquiesce, petition or otherwise
invoke or cause the Seller to invoke the process of any court or government
authority for the purpose of commencing or sustaining a case against the Seller
under any federal or state bankruptcy, insolvency or similar law, appointing a
receiver, liquidator, assignee, trustee, custodian, sequestrator or other
similar official of the Seller or any substantial part of its property, or
ordering the winding up or liquidation of the affairs of the Seller.

     SECTION 10.12 LIMITATION OF LIABILITY OF OWNER TRUSTEE AND INDENTURE
TRUSTEE.

     Notwithstanding anything contained herein to the contrary, this Agreement
has been countersigned by U.S. Bank Trust National Association, not in its
individual capacity, but solely in its capacity as Owner Trustee on behalf of
the Issuer, and by U.S. Bank National Association, not in its individual
capacity, but solely in its capacity as Indenture Trustee under the Indenture.
In no event shall U.S. Bank Trust National Association in its individual
capacity or U.S. Bank National Association in its individual capacity 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 by the Seller or Servicer, or prepared by the Seller or
Servicer for delivery by the Owner Trustee on behalf of the Issuer, pursuant

                                       63
<PAGE>

hereto, as to all of which recourse shall be had solely to the assets of the
Issuer. For all purposes of this Agreement, in the performance of its duties or
obligations hereunder or in the performance of any duties or obligations of the
Issuer hereunder, the Owner Trustee shall be subject to, and entitled to the
benefits of, the terms and provisions of Articles VI, VII and VIII of the Trust
Agreement.

                                       64
<PAGE>

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

                                    TOYOTA AUTO RECEIVABLES 2001-A
                                    OWNER TRUST

                                    By:  U.S. Bank Trust National Association,
                                    not in its individual capacity but solely as
                                    Owner Trustee on behalf of the Issuer

                                    By: /s/ MELISSA ROSAL
                                        ----------------------------------------
                                    Name:  Melissa A. Rosal
                                    Title: Vice President

                                    TOYOTA MOTOR CREDIT RECEIVABLES CORPORATION,
                                    Seller

                                    By: /s/ LLOYD MISTELE
                                        ----------------------------------------
                                    Name:  Lloyd Mistele
                                    Title: President

                                    TOYOTA MOTOR CREDIT CORPORATION, Servicer

                                    By: /s/ GEORGE E. BORST
                                        ----------------------------------------
                                    Name:  George E. Borst
                                    Title: President and Chief Executive Officer

ACKNOWLEDGED AND ACCEPTED AS OF
THE DAY AND YEAR FIRST ABOVE WRITTEN:

U.S. Bank National Association, not in its
individual capacity but solely as Indenture Trustee

By: /s/ MELISSA ROSAL
    --------------------------------
Name:  Melissa A. Rosal
Title: Vice President

                                      S-1

<PAGE>

                                   SCHEDULE A

                             Schedule of Receivables

   (Omitted - Originals on file at the office of the Seller and Owner Trustee)

                                      SA-1

<PAGE>

                                    EXHIBIT A

                         Form of Servicer's Certificate

                                 (SEE ATTACHED)

                                      A-1

<PAGE>

<TABLE>
<S><C>
                                                    TOYOTA MOTOR CREDIT CORPORATION
                                   SERVICER'S REPORT -- TOYOTA AUTO RECEIVABLES 2001-A OWNER TRUST
               DISTRIBUTION DATE OF FEBRUARY 15, 2001 FOR THE COLLECTION PERIOD JANUARY 1, 2001 TO JANUARY 31, 2001

------------------------------------------------------------------------------------------------------------------------------------
                                                                 Class A-1          Class A-2         Class A-3        Class A-4
                                                                 ---------          ---------         ---------        ---------
                                              Total               Balance            Balance           Balance          Balance
------------------------------------------------------------------------------------------------------------------------------------
POOL DATA - ORIGINAL DEAL PARAMETERS
  Securities Balance                       1,503,500,000.00      $317,048,000.00    440,000,000.00  $440,000,000.00 $306,452,000.00
  Receivables Pool Balance                 1,503,500,000.00
  Principal Factor                               1.00000000           1.00000000        1.00000000       1.00000000      1.00000000
  Rate                                                                    5.613%             5.380%           5.432%          5.580%
  Final Scheduled Payment Date                               January 15, 2002   December 15, 2003  March 15, 2005 September 17, 2007
  Number of Contracts                                97,350
  Weighted Average Coupon                            10.03%
  Weighted Average Remaining Term                     59.20 months
  Servicing Fee Rate                                  1.00%

POOL DATA - PRIOR MONTH
  Securities Balance                       1,503,500,000.00      $317,048,000.00   $440,000,000.00  $440,000,000.00 $306,452,000.00
  Receivables Pool Balance                 1,503,500,000.00
  Securities Pool Factor                         0.00000000           0.00000000        0.00000000       0.00000000      0.00000000
  Number of Contracts                                97,350
  Weighted Average Coupon                            10.03%
  Weighted Average Remaining Term                     59.20 months
  Precompute and Simple Interest Advances             $0.00
  Payahead Account Balance                            $0.00
  Supplemental Servicing Fee Received                 $0.00
  Interest Shortfall                                  $0.00                $0.00             $0.00            $0.00           $0.00
  Principal Shortfall                                 $0.00                $0.00             $0.00            $0.00           $0.00

POOL DATA - CURRENT MONTH
  Securities Balance                                  $0.00                $0.00             $0.00            $0.00           $0.00
  Receivables Pool Balance                            $0.00
  Securities Pool Factor                         0.00000000           0.00000000        0.00000000       0.00000000      0.00000000
  Number of Contracts                                     0
  Weighted Average Coupon                             0.00%
  Weighted Average Remaining Term                      0.00 months
  Precompute and Simple Interest Advances             $0.00
  Payahead Account Balance                            $0.00
  Supplemental Servicing Fee Received                 $0.00
  Interest Shortfall                                  $0.00                $0.00             $0.00            $0.00           $0.00
  Principal Shortfall                                 $0.00                $0.00             $0.00            $0.00           $0.00
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
RESERVE FUND

  Initial Deposit Amount                                                                                              $3,875,000.00
  Specified Reserve Fund Percentage                                                                                            0.75%
  Specified Reserve Fund Amount                                                                                               $0.00
  Specified Reserve Fund Percentage (if Condition i or ii met)                                                                 5.50%
  Specified Reserve Fund Amount (if Condition i or ii met)                                                                    $0.00

  Beginning Balance                                                                                                           $0.00
  Total Withdraw                                                                                                              $0.00
  Amount Available for Deposit to the Reserve Fund                                                                            $0.00
  Reserve Fund Balance Prior to Release                                                                                       $0.00
  Reserve Fund Required Amount                                                                                                $0.00
  Reserve Fund Release to Seller                                                                                              $0.00
  Ending Reserve Fund Balance                                                                                                 $0.00
------------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------
LIQUIDATION OF CHARGE-OFFS AND REPOSSESSIONS

                                                                   Vehicles            Amount
                                                                   --------            ------
  Liquidated Contracts                                                 0
  Gross Principal Balance of Liquidated Receivables                                               $0.00
  Net Liquidation Proceeds Received During the Collection Period                                  $0.00
  Recoveries on Previously Liquidated Contracts                                                   $0.00
                                                                              --------------------------
  Aggregate Credit Losses for the Collection Period                                               $0.00
                                                                              --------------------------

                                                                              --------------------------
  Cumulative Credit Losses for all Periods                             0                          $0.00
                                                                              --------------------------
  Repossessed in Current Period                                        0

RATIO OF NET CREDIT LOSSES TO THE AVERAGE POOL BALANCE                            Annualized Average
FOR EACH COLLECTION PERIOD:                                                        Charge-Off Rate
    Second Preceding Collection Period                                                            0.00%
    First Preceding Collection Period                                                             0.00%
    Current Collection Period                                                                     0.00%

--------------------------------------------------------------------------------------------------------
CONDITION (i) (CHARGE-OFF RATE)
Three Month Average                                                                               0.00%
Charge-off Rate Indicator ( > 1.25%)                                                  condition not met
--------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------
DELINQUENT AND REPOSSESSED CONTRACTS

                                           Percent   Contracts      Percent            Amount
                                           -------   ---------      -------            ------
  31-60 Days Delinquent                        0.00%            0       0.00%                     $0.00
  61-90 Days Delinquent                        0.00%            0       0.00%                     $0.00
  Over 90 Days Delinquent                      0.00%            0       0.00%                     $0.00
                                                     -------------            --------------------------
  Total Delinquencies                                           -                                 $0.00
                                                     =============            ==========================

  Repossessed Vehicle Inventory                                 0 *
   * Included with delinquencies above

Ratio of Number of Contracts Delinquent 60 Days or More to the Outstanding
Number of Receivables as of Each Collection Period (Includes Repossessions):
    Second Preceding Collection Period                                                            0.00%
    First Preceding Collection Period                                                             0.00%
    Current Collection Period                                                                     0.00%

--------------------------------------------------------------------------------------------------------
CONDITION (ii) (DELINQUENCY PERCENTAGE)
Three Month Average                                                                               0.00%
Delinquency Percentage Indicator ( > 1.25%)                                           condition not met
--------------------------------------------------------------------------------------------------------

                                                             Page 1
<PAGE>

                                                 TOYOTA MOTOR CREDIT CORPORATION
                                    SERVICER'S REPORT -- TOYOTA AUTO RECEIVABLES 2001-A OWNER TRUST
             DISTRIBUTION DATE OF FEBRUARY 15, 2001 FOR THE COLLECTION PERIOD JANUARY 1, 2001 TO JANUARY 31, 2001
------------------------------------------------------------------------------------------------------------------------------------
                                                                 Class A-1          Class A-2         Class A-3        Class A-4
                                                                 ---------          ---------         ---------        ---------
                                                    Total         Balance            Balance           Balance          Balance
------------------------------------------------------------------------------------------------------------------------------------
COLLECTIONS
  Principal Payments Received                         $0.00
  Interest Payments Received                          $0.00
  Net Precomputed Payahead Amount                     $0.00
  Aggregate Net Liquidation Proceeds Received         $0.00
  Principal on Repurchased Contracts                  $0.00
  Interest on Repurchased Contracts                   $0.00
                                                    --------
  Total Collections                                   $0.00
  Net Simple Interest Advance Amount                  $0.00
  Net Precomputed Advance Amount                      $0.00
                                                    --------
  Total Available Amount                              $0.00

AMOUNTS DUE
  Servicing Fee                                       $0.00
  Accrued and Unpaid Interest                         $0.00
  Principal                                           $0.00
  Reserve Fund                                        $0.00
                                                    --------
  Total Amount Due                                    $0.00

ACTUAL DISTRIBUTIONS
  Servicing Fee                                       $0.00
  Interest                                            $0.00           $0.00              $0.00           $0.00           $0.00
  Principal                                           $0.00           $0.00              $0.00           $0.00           $0.00
  Reserve Fund                                        $0.00
                                                              --------------   ----------------  --------------   -------------
  Total Amount Distributed                            $0.00           $0.00              $0.00           $0.00           $0.00
-----------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------
MONTHLY INFORMATION BY TYPE OF LOAN

PRECOMPUTED CONTRACTS
  Scheduled Principal Collections                                                                 $0.00
  Prepayments in Full                                           0 contracts                       $0.00
  Repurchased Receivables Principal                                                               $0.00
  Payments Behind/Ahead on Repurchased Receivables                                                $0.00
  Total Collections                                                                               $0.00
  Advances - Reimbursement of Previous Advances                                                   $0.00
  Advances - Current Advance Amount                                                               $0.00
  Payahead Account - Payments Applied                                                             $0.00
  Payahead Account - Additional Payaheads                                                         $0.00

SIMPLE INTEREST CONTRACTS
  Collected Principal                                                                             $0.00
  Prepayments in Full                                           0 contracts                       $0.00
  Collected Interest                                                                              $0.00
  Repurchased Receivables Principal                                                               $0.00
  Repurchased Receivables Interest                                                                $0.00
  Advances - Reimbursement of Previous Advances                                                   $0.00
  Advances - Current Advance Amount                                                               $0.00

--------------------------------------------------------------------------------------------------------
</TABLE>

                                                              Page 2<PAGE>

                                                                     EXHIBIT 4.2

                                    INDENTURE

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

                   TOYOTA AUTO RECEIVABLES 2001-A OWNER TRUST,

                                    as Issuer

                                       and

                         U.S. BANK NATIONAL ASSOCIATION,

                            as Indenture Trustee and
                             Securities Intermediary

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

                           Dated as of January 1, 2001

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               PAGE
<S>                                                                                                            <C>
ARTICLE I                  DEFINITIONS AND INCORPORATION BY REFERENCE
       Section 1.01        Definitions...........................................................................2
       Section 1.02        Usage of Terms........................................................................9
       Section 1.03        Incorporation by Reference of Trust Indenture Act....................................10
ARTICLE II            THE NOTES
       Section 2.01        Form.................................................................................10
       Section 2.02        Execution, Authentication and Delivery...............................................11
       Section 2.03        Temporary Notes......................................................................11
       Section 2.04        Registration; Registration of Transfer and Exchange..................................11
       Section 2.05        Mutilated, Destroyed, Lost or Stolen Notes...........................................13
       Section 2.06        Persons Deemed Owners................................................................14
       Section 2.07        Payments of Principal and Interest...................................................14
       Section 2.08        Cancellation.........................................................................15
       Section 2.09        Release of Collateral................................................................15
       Section 2.10        Book-Entry Notes.....................................................................15
       Section 2.11        Notices to Clearing Agency...........................................................16
       Section 2.12        Definitive Notes.....................................................................16
       Section 2.13        Tax Treatment........................................................................17
ARTICLE III           COVENANTS
       Section 3.01        Payments to Noteholders, Certificateholder, Swap Counterparty,
                           Servicer and Seller..................................................................17
       Section 3.02        Maintenance of Office or Agency......................................................18
       Section 3.03        Money for Payments To Be Held in Trust...............................................18
       Section 3.04        Existence............................................................................20
       Section 3.05        Protection of Trust Estate...........................................................20
       Section 3.06        Opinions as to Trust Estate..........................................................20
       Section 3.07        Performance of Obligations; Servicing of Receivables.................................21
       Section 3.08        Negative Covenants...................................................................23
       Section 3.09        Annual Statement as to Compliance....................................................24
</TABLE>

                                       i
<PAGE>

                                TABLE OF CONTENTS
                                  (CONTINUED)
<TABLE>
<CAPTION>
                                                                                                               PAGE
<S>                                                                                                            <C>
       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....................................................................26
       Section 3.13        No Borrowing.........................................................................26
       Section 3.14        Servicer's Notice Obligations........................................................26
       Section 3.15        Guarantees, Loans, Advances and Other Liabilities....................................26
       Section 3.16        Capital Expenditures.................................................................27
       Section 3.17        Removal of Administrator.............................................................27
       Section 3.18        Restricted Payments..................................................................27
       Section 3.19        Notice of Events of Default..........................................................27
       Section 3.20        Further Instruments and Actions......................................................27
ARTICLE IV            SATISFACTION AND DISCHARGE
       Section 4.01        Satisfaction and Discharge of Indenture..............................................27
       Section 4.02        Application of Trust Money...........................................................28
       Section 4.03        Repayment of Moneys Held by Paying Agent.............................................29
ARTICLE V             REMEDIES
       Section 5.01        Events of Default....................................................................29
       Section 5.02        Acceleration of Maturity; Rescission and Annulment...................................31
       Section 5.03        Collection of Indebtedness and Suits for Enforcement by
                           Indenture Trustee....................................................................32
       Section 5.04        Remedies; Priorities; Insolvency of Seller...........................................34
       Section 5.05        Optional Preservation of the Receivables.............................................36
       Section 5.06        Limitation of Suits..................................................................36
       Section 5.07        Unconditional Rights of Noteholders To Receive
                           Principal and Interest...............................................................37
       Section 5.08        Restoration of Rights and Remedies...................................................37
       Section 5.09        Rights and Remedies Cumulative.......................................................37
       Section 5.10        Delay or Omission Not a Waiver.......................................................37
       Section 5.11        Control by Noteholders...............................................................37
</TABLE>

                                       ii
<PAGE>

<TABLE>
<CAPTION>
                                                                                                               PAGE
<S>                                                                                                            <C>
       Section 5.12        Waiver of Past Defaults..............................................................38
       Section 5.13        Undertaking for Costs................................................................38
       Section 5.14        Waiver of Stay or Extension Laws.....................................................39
       Section 5.15        Action on Notes......................................................................39
       Section 5.16        Performance and Enforcement of Certain Obligations...................................39
ARTICLE VI            THE INDENTURE TRUSTEE
       Section 6.01        Duties of Indenture Trustee..........................................................40
       Section 6.02        Rights of Indenture Trustee..........................................................41
       Section 6.03        Individual Rights of Indenture Trustee...............................................42
       Section 6.04        Indenture Trustee's Disclaimer.......................................................42
       Section 6.05        Notice of Defaults...................................................................43
       Section 6.06        Reports by Indenture Trustee to Holders..............................................43
       Section 6.07        Compensation and Indemnity...........................................................44
       Section 6.08        Replacement of Indenture Trustee.....................................................44
       Section 6.09        Successor Indenture Trustee by Merger................................................45
       Section 6.10        Appointment of Co-Indenture Trustee or Separate
                           Indenture Trustee....................................................................46
       Section 6.11        Eligibility; Disqualification........................................................47
       Section 6.12        Preferential Collection of Claims Against Issuer.....................................47
       Section 6.13        Pennsylvania Motor Vehicle Sales Finance Company Licenses............................47
       Section 6.14        Interest Rate Swap Provisions........................................................47
ARTICLE VII           NOTEHOLDERS' LISTS AND REPORTS
       Section 7.01        Note Registrar To Furnish Names and Addresses of Noteholders.........................48
       Section 7.02        Preservation of Information; Communications to Noteholders...........................49
       Section 7.03        Reports by Issuer....................................................................49
       Section 7.04        Reports by Indenture Trustee.........................................................50
ARTICLE VIII          ACCOUNTS, DISBURSEMENTS AND RELEASES
       Section 8.01        Collection of Money..................................................................50
       Section 8.02        Trust Accounts.......................................................................50
</TABLE>

                                      iii
<PAGE>

<TABLE>
<CAPTION>
                                                                                                               PAGE
<S>                                                                                                            <C>
       Section 8.03        [Reserved]...........................................................................51
       Section 8.04        General Provisions Regarding Accounts................................................51
       Section 8.05        Release of Trust Estate..............................................................52
       Section 8.06        Opinion of Counsel...................................................................53
ARTICLE IX            SUPPLEMENTAL INDENTURES
       Section 9.01        Supplemental Indentures Without Consent of Noteholders...............................53
       Section 9.02        Supplemental Indentures with Consent of Noteholders..................................54
       Section 9.03        Limitations on Supplemental Indentures...............................................54
       Section 9.04        Execution of Supplemental Indentures.................................................55
       Section 9.05        Effect of Supplemental Indenture.....................................................56
       Section 9.06        Conformity with Trust Indenture Act..................................................56
       Section 9.07        Reference in Notes to Supplemental Indentures........................................56
ARTICLE X             TERMINATION OF THE TRUST
       Section 10.01       Termination of the Trusts Created by Indenture.......................................56
       Section 10.02       Optional Purchase of All Receivables.................................................57
ARTICLE XI            MISCELLANEOUS
       Section 11.01       Compliance Certificates and Opinions, etc............................................58
       Section 11.02       Form of Documents Delivered to Indenture Trustee.....................................59
       Section 11.03       Acts of Noteholders..................................................................60
       Section 11.04       Notices, etc., to Indenture Trustee, Issuer and Rating Agencies......................60
       Section 11.05       Notices to Noteholders; Waiver.......................................................61
       Section 11.06       Alternate Payment and Notice Provisions..............................................61
       Section 11.07       Conflict with Trust Indenture Act....................................................61
       Section 11.08       Effect of Headings and Table of Contents.............................................62
       Section 11.09       Successors and Assigns...............................................................62
       Section 11.10       Severability.........................................................................62
       Section 11.11       Benefits of Indenture................................................................62
       Section 11.12       Governing Law........................................................................62
       Section 11.13       Counterparts.........................................................................62
</TABLE>

                                       iv
<PAGE>

<TABLE>
<CAPTION>
                                                                                                               PAGE
<S>                                                                                                            <C>
       Section 11.14       Recording of Indenture...............................................................62
       Section 11.15       Trust Obligation.....................................................................63
       Section 11.16       No Petition..........................................................................63
       Section 11.17       Inspection...........................................................................63
</TABLE>

EXHIBIT A - Forms of Class A-1 Note, Class A-2 Note, Class A-3 Note and Class
A-4 Note

EXHIBIT B - Form of Note Depository Agreement

                                       v
<PAGE>

                              CROSS-REFERENCE TABLE
                         (not a part of this Indenture)

<TABLE>
<CAPTION>
   TIA                                                                                                  INDENTURE
SECTION                                                                                                   SECTION
-------                                                                                                -----------
<S>                                                                                                    <C>
(Section)310(a) (1)....................................................................................... 6.11
      (a) (2)............................................................................................. 6.11
      (a) (3)............................................................................................. N.A.
      (a) (4)............................................................................................. N.A.
      (a) (5)............................................................................................. 6.11
      (b) ................................................................................................ 5.04
                                                                                                           6.08
                                                                                                           6.11
                                                                                                          11.04
      (c) ................................................................................................ N.A.
(Section)311(a) .......................................................................................... 6.12
      (b) ................................................................................................ 6.12
      (c) ................................................................................................ N.A.
(Section)312(a) .......................................................................................... 7.02
      (b) ................................................................................................ 7.02
      (c) ................................................................................................ 7.02
(Section)313(a) .......................................................................................... 7.04
      (b) (1)............................................................................................. N.A.
      (b) (2)............................................................................................. 7.04
      (c) ................................................................................................ 7.04
                                                                                                          11.04
      (d) ................................................................................................ 7.04
(Section)314(a) .......................................................................................... 3.09
                                                                                                           7.03
                                                                                                          11.04
      (b) ............................................................................................... 11.14
      (c) (1) ...........................................................................................  3.10
                                                                                                           6.02
                                                                                                        8.05(b)
                                                                                                           6.02
                                                                                                          11.01
      (c) (2)............................................................................................  3.06
                                                                                                           3.10
                                                                                                           6.02
                                                                                                        8.05(b)
                                                                                                           8.06
      (c) (3)............................................................................................. N.A.
      (d) ................................................................................................ N.A.
      (d) ................................................................................................ N.A.
      (e) ............................................................................................... 11.05
      (f) ............................................................................................... 4.01.
(Section)315(a) .........................................................................................  6.01
      (b) ...............................................................................................  6.05
      (c) ...............................................................................................  5.02
                                                                                                           5.08
      (d) ..............................................................................................6.01(c)
      (e) ................................................................................................ 5.13
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
   TIA                                                                                                  INDENTURE
SECTION                                                                                                   SECTION
-------                                                                                                -----------
<S>                                                                                                    <C>
(Section)316(a) (last sentence)......................................................................... 6.01(c)
      (a) (1) (A)....................................................................................... 6.01(c)
      (a) (1) (B).........................................................................................  5.12
      (a) (2).............................................................................................  N.A.
      (b) ................................................................................................  5.01
                                                                                                         5.04(b)
      (c) ................................................................................................  2.06
(Section)317(a) (1) ......................................................................................  5.04
      (a) (2) .......................................................................................... 5.03(c)
                                                                                                         5.03(d)
      (b) ................................................................................................  4.03
(Section)318(a) .......................................................................................... 11.07
</TABLE>

---------
N.A. means not applicable

<PAGE>

         INDENTURE dated as of January 1, 2001, between TOYOTA AUTO RECEIVABLES
2001-A OWNER TRUST, a Delaware business trust (the "Issuer"), and U.S. BANK
NATIONAL ASSOCIATION, a national banking association, as trustee and not in its
individual capacity (the "Indenture Trustee").

         Each party agrees as follows for the benefit of the other party and for
the equal and ratable benefit of the Holders of the Issuer's 5.613% Asset Backed
Notes, Class A-1 (the "Class A-1 Notes"), 5.380% Asset Backed Notes, Class A-2
(the "Class A-2 Notes"), Floating Rate Asset Backed Notes, Class A-3 (the "Class
A-3 Notes") and Floating Rate Asset Backed Notes, Class A-4 (the "Class A-4
Notes," and together with the Class A-1 Notes, the Class A-2 Notes and the Class
A-3 Notes, the "Class A Notes" or the "Notes"):

                                 GRANTING CLAUSE

         The Issuer hereby Grants to the Indenture Trustee at the Closing Date,
as Indenture Trustee for the benefit of the Holders of the Notes and the
Certificate and the Swap Counterparty, all of the Issuer's right, title and
interest in and to, in each case whether now or hereafter existing or in which
Issuer now has or hereafter acquires an interest and wherever the same may be
located: (i) all right, title and interest of the Issuer in and to the
Receivables and all monies due thereon or paid thereunder or in respect thereof
(including proceeds of the repurchase of Receivables by the Seller pursuant to
Section 3.02 or the purchase of Receivables by the Servicer pursuant to Section
4.08 or 9.01 of the Sale and Servicing Agreement) on or after the Cutoff Date;
(ii) the interest of the Issuer in the security interests in the Financed
Vehicles granted by the Obligors pursuant to the Receivables and any accessions
thereto; (iii) the interest of the Issuer in any proceeds of any physical damage
insurance policies covering Financed Vehicles and in any proceeds of any credit
life or credit disability insurance policies relating to the Receivables or the
Obligors; (iv) the interest of the Issuer in any Dealer Recourse; (v) the right
of the Issuer to realize upon any property (including the right to receive
future Liquidation Proceeds) that shall have secured a Receivable and have been
repossessed by or on behalf of the Issuer; (vi) the rights and interests of the
Issuer under the Sale and Servicing Agreement and as assignee (pursuant to the
Sale and Servicing Agreement) of the rights and interests of TMCRC under the
Receivables Purchase Agreement; (vii) all rights, title and interest of the
Issuer in and to the Interest Rate Swap Agreement and; (viii) all other assets
comprising the Owner Trust Estate; (ix) all proceeds of the foregoing and (x)
all present and future claims, demands, causes of action and choses in action in
respect of any or all of the foregoing and all payments on or under of every
kind and nature whatsoever in respect of any or all of the foregoing, including
all proceeds of the conversion thereof, voluntary or involuntary, into cash or
other liquid property, all cash proceeds, accounts, accounts receivable, notes,
drafts, acceptances, chattel paper, checks, deposit accounts, insurance
proceeds, condemnation awards, rights to payment of any and every kind and other
forms of obligations and receivables, instruments and other property which at
any time constitute all or part of or are included in the proceeds of any of the
foregoing (collectively, the "Collateral").

         The foregoing Grant is made in trust to secure the payment of principal
of and interest on, and any other amounts owing in respect of, the Notes,
equally and ratably without prejudice, priority or distinction, and to secure
compliance with the provisions of this Indenture, and subject

                                       1
<PAGE>

to the subordinate claims thereon of the Holder of the Certificate, all as
provided in this Indenture.

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

                                   ARTICLE I

                   DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.01 DEFINITIONS. Except as otherwise specified herein or as the
context may otherwise require, capitalized terms used but not otherwise defined
herein have the meanings ascribed thereto in the Trust Agreement, the Sale and
Servicing Agreement, the Interest Rate Swap Agreement and Securities Account
Control Agreement, as the case may be, for all purposes of this Indenture.
Except as otherwise provided in this Agreement, whenever used herein the
following words and phrases, unless the context otherwise requires, shall have
the following meanings:

         "ACTION" has the meaning specified in Section 11.03(a).

         "ADMINISTRATION AGREEMENT" means the Administration Agreement dated as
of January 1, 2001, among the Administrator, the Issuer and the Indenture
Trustee.

         "ADMINISTRATOR" means TMCC, or any successor Administrator under the
Administration Agreement.

         "AUTHORIZED OFFICER" means (i) with respect to the Issuer, any officer
of the Owner Trustee who is authorized to act for the Owner Trustee in matters
relating to the Issuer identified as such on any list of Authorized Officers
delivered by the Owner Trustee to the Indenture Trustee and (ii) with respect to
the Administrator, any Vice President or more senior officer of the
Administrator who is authorized to act for the Administrator in matters relating
to the Issuer and identified as such on any list of Authorized Officers
delivered by the Administrator to the Indenture Trustee.

         "BOOK-ENTRY NOTES" means a beneficial interest in the Class A-2 Notes,
Class A-3 Notes and Class A-4 Notes, ownership and transfers of which shall be
made through book entries by a Clearing Agency as described in Section 2.10.

         "BUSINESS DAY" means any day other than a Saturday, a Sunday or a day
on which banking institutions or trust companies in The City of New York, The
City of San Francisco or the City of Chicago are authorized or obligated by law,
regulation or executive order to remain closed.

                                       2
<PAGE>

         "CLASS A-1 RATE" means 5.613% per annum (computed on the basis of the
actual number of days elapsed during the relevant Interest Period and a 360-day
year).

         "CLASS A-1 NOTES" means the 5.613% Asset Backed Notes, Class A-1,
substantially in the form attached hereto as Exhibit A.

         "CLASS A-2 RATE" means 5.380% per annum (computed on the basis of a
360-day year consisting of twelve 30-day months).

         "CLASS A-2 NOTES" means the 5.380% Asset Backed Notes, Class A-2,
substantially in the form attached hereto as Exhibit A.

         "CLASS A-3 RATE" means, with respect to any Payment Date, one-month
LIBOR plus 0.08% (computed on the basis of the actual number of days elapsed
during the relevant Interest Period and a 360-day year).

         "CLASS A-3 NOTES" means the Floating Rate Asset Backed Notes, Class
A-3, substantially in the form attached hereto as Exhibit A.

         "CLASS A-4 RATE" means, with respect to any Payment Date, one-month
LIBOR plus 0.11% (computed on the basis of the actual number of days elapsed
during the relevant Interest Period and a 360-day year).

         "CLASS A-4 NOTES" means the Floating Rate Asset Backed Notes, Class
A-4, substantially in the form attached hereto as Exhibit A.

         "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 January 25, 2001.

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

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

         "CORPORATE TRUST OFFICE" means the principal office of the Indenture
Trustee at which at any particular time its corporate trust business shall be
administered, which office at the date of execution of this Agreement is located
at 111 East Wacker Drive, Suite 3000, Chicago, Illinois 60601, or at such other
address as the Indenture Trustee may designate from time to time by notice to
the Noteholders, the Issuer and the Administrator, or the principal corporate
trust office of any successor Indenture Trustee at the address designated by
such successor Indenture Trustee by notice to the Noteholders, the Issuer and
the Administrator.

                                       3
<PAGE>

         "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.

         "EVENT OF DEFAULT" has the meaning specified in Section 5.01.

         "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,
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, sell, warrant, alienate,
remise, release, convey, assign, transfer, create, and grant a lien upon and a
security interest in and right of set-off against, deposit, set over and confirm
pursuant to this Indenture. A Grant of the Collateral or of any other agreement
or instrument shall include all rights, powers and options (but none of the
obligations) of the granting party thereunder, including the immediate and
continuing right to claim for, collect, receive and give receipt for 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.

         "INDENTURE TRUSTEE" means U.S. Bank National Association, a national
banking association, as Indenture Trustee under this Indenture, or any successor
Indenture Trustee under this Indenture.

         "INDEPENDENT" means, when used with respect to any specified Person,
that the Person is in fact independent of the Seller, the Servicer, the
Administrator, the Issuer or any other obligor on the Notes or any Affiliate of
any of the foregoing Persons because, among other things, such Person (a) is not
an employee, officer or director or otherwise controlled thereby or under common
control therewith, (b) does not have any direct financial interest or any
material indirect financial interest therein (whether as holder of securities
thereof or party to contract therewith or otherwise) and (c) is not and has not
within the preceding twelve months been a promoter, underwriter, trustee,
partner, director or person performing similar functions therefor or otherwise
had legal, contractual or fiduciary or other duties to act on behalf of or for
the benefit thereof.

         "INDEPENDENT CERTIFICATE" means a certificate or opinion to be
delivered to the Indenture Trustee under the circumstances described in Section
11.01, made by an Independent appraiser or other expert appointed by an Issuer
Order and approved by the Indenture Trustee in the exercise of reasonable care,
and such opinion or certificate shall state that the signer has read the

                                       4
<PAGE>

definition of "Independent" in this Indenture and that the signer is Independent
within the meaning thereof.

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

         "INTEREST PERIOD" means, with respect to the Class A-1 Notes, the Class
A-3 Notes and the Class A-4 Notes, the period from (and including) any Payment
Date to (but excluding) the next Payment Date, except that the first interest
period will be from (and including) the Closing Date to (but excluding) February
15, 2001, and, with respect to the Class A-2 Notes, the period from (and
including) the 15th day of each calendar month to (but excluding) the 15th day
of the succeeding calendar month except that the first interest period will be
from (and including) the Closing Date to (but excluding) February 15, 2001.

         "INTEREST RATE" means the Class A-1 Rate, the Class A-2 Rate, the Class
A-3 Rate or the Class A-4 Rate, as indicated by the context.

         "INTEREST DETERMINATION DATE" means the second London Banking Day prior
to the Interest Reset Date for the related Interest Period.

         "INTEREST RATE SWAP AGREEMENT" means 1992 ISDA Master Agreement dated
as of January 25, 2001 (the "1992 ISDA Master Agreement"), including all
schedules and confirmations thereto, between the Issuer and the Swap
Counterparty, as the same may be amended, supplemented, renewed, extended or
replaced from time to time.

         "ISSUER" means Toyota Auto Receivables 2001-A Owner Trust unless and
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, if any.

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

         "LIBOR" means the rate for deposits in U.S. dollars for a one-month
period which appears on the Telerate Page 3750 as of 11:00 a.m., London time, on
the Interest Determination

                                       5
<PAGE>

Date; provided that, the following procedures will be followed if LIBOR cannot
be determined as described above:

         (a) With respect to an Interest Determination Date on which no
rate appears on Telerate Page 3750, LIBOR for the applicable Interest
Determination Date will be the rate calculated by the Calculation Agent (as
defined in the Interest Rate Swap Agreement) as the arithmetic mean of at least
two quotations obtained by the Calculation Agent after requesting the principal
London offices of each of four major reference banks in the London interbank
market, which may include the Calculation Agent and its affiliates, as selected
by the Calculation Agent, to provide the Calculation Agent with its offered
quotation for deposits in U.S. dollars for a one-month period, commencing on the
second London Banking Day immediately following the applicable Interest
Determination Date, to prime banks in the London interbank market at
approximately 11:00 a.m., London time, on such Interest Determination Date and
in a principal amount that is representative for a single transaction in U.S.
dollars in that market at that time. If at least two such quotations are
provided, LIBOR determined on the applicable Interest Determination Date will be
the arithmetic mean of the quotations.

         (b) If fewer than two quotations referred to in clause (a) above
are provided, LIBOR determined on the applicable Interest Determination Date
will be the rate calculated by the Calculation Agent as the arithmetic mean of
the rates quoted at approximately 11:00 a.m. in New York on the applicable
Interest Determination Date by three major banks, which may include the
Calculation Agent and its affiliates, in New York, selected by the Calculation
Agent for loans in U.S. dollars to leading European banks, having a maturity of
one-month and in a principal amount that is representative for a single
transaction in U.S. dollars in that market at that time.

         (c) If the banks so selected by the Calculation Agent are not
quoting as mentioned in clause (b) above, LIBOR for the applicable Interest
Determination Date will be LIBOR in effect on the applicable Interest
Determination Date.

         "NOTE" means a Class A-1 Note, a Class A-2 Note, a Class A-3 Note or a
Class A-4 Note.

         "NOTE DEPOSITORY AGREEMENT" means the agreement entitled "Letter of
Representations" dated on or before the Closing Date among the Clearing Agency,
the Issuer and the Indenture Trustee with respect to certain matters relating to
the duties thereof with respect to the Book-Entry Notes, substantially in the
form attached hereto as Exhibit B.

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

         "NOTE REGISTER" means the Register of Noteholders' information
maintained by the Note Registrar pursuant to Section 2.04.

         "NOTE REGISTRAR" means the Indenture Trustee unless and until a
successor Note Registrar shall have been appointed pursuant to Section 2.04.

                                       6
<PAGE>

         "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 11.01, and delivered to
the Indenture Trustee.

         "OPINION OF COUNSEL" means one or more written opinions of counsel who
may, except as otherwise expressly provided in this Indenture, be an employee of
or counsel to the Issuer, the Seller or the Servicer and which counsel shall be
satisfactory to the Owner Trustee, the Indenture Trustee or the Rating Agencies,
as the case may be.

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

         (a) Notes theretofore canceled by the Note Registrar or delivered to
the Note Registrar for cancellation;

         (b) Notes or portions thereof the payment for which money in the
necessary amount has been theretofore deposited with the Indenture Trustee or
any Paying Agent in trust for the Holders of such Notes; and

         (c) Notes in exchange for or in lieu of which other Notes 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, that in determining whether the Holders of the
requisite percentage of the Outstanding Amount of the Notes, or any Class of
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 Seller or any Affiliate of any of
the foregoing Persons shall be disregarded and deemed not to be Outstanding,
except that, in determining whether the Indenture Trustee shall be protected in
relying upon any such request, demand, authorization, direction, notice,
consent, or waiver, only Notes that the Indenture Trustee knows to be so owned
shall be so disregarded. Notes so owned that have been pledged in good faith may
be regarded as Outstanding if the pledgee establishes to the satisfaction of the
Indenture Trustee the pledgee's right so to act with respect to such Notes and
that the pledgee is not the Issuer, any other obligor upon the Notes, the Seller
or any Affiliate of any of the foregoing Persons.

         "OUTSTANDING AMOUNT" means the aggregate principal amount of all Notes,
or, if indicated by the context, all Notes of any Class, outstanding at the date
of determination.

         "OWNER TRUSTEE" means U.S. Bank Trust National Association, not in its
individual capacity but solely as Owner Trustee under the Trust Agreement, or
any successor Owner Trustee under the Trust Agreement.

         "OWNER TRUST ESTATE" "OWNER TRUST ESTATE" means all right, title and
interest of the Issuer in and to the property and rights assigned to the Issuer
pursuant to Article II of the Sale and Servicing Agreement, all funds on deposit
from time to time in the accounts created pursuant to Section 5.01 of the Sale
and Servicing Agreement (excluding any net investment income with respect to
amounts held in such accounts) and all other property of the Issuer from time to
time, including any rights of the Owner Trustee and the Issuer pursuant to the
Sale and Servicing

                                       7
<PAGE>

Agreement and the Administration Agreement, and as assignee of the rights and
Interests of the Depositor under the Receivables Purchase Agreement.

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

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

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

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

         "SALE AND SERVICING AGREEMENT" means the Sale and Servicing Agreement
dated as of January 1, 2001, among the Issuer, Toyota Motor Credit Receivables
Corporation, as Seller, and Toyota Motor Credit Corporation, as Servicer, and as
to which the Indenture Trustee is a third party beneficiary of certain
provisions.

         "SECURITIES ACT" means the Securities Act of 1933, as amended.

         "SECURITIES ACCOUNT CONTROL AGREEMENT" shall have the meaning ascribed
thereto in the Sale and Servicing Agreement.

         "SELLER" shall mean Toyota Motor Credit Receivables Corporation, in its
capacity as seller under the Sale and Servicing Agreement, and its successor in
interest.

         "SERVICER" shall mean Toyota Motor Credit Corporation in its capacity
as servicer under the Sale and Servicing Agreement, and any Successor Servicer
thereunder.

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

         "SWAP COUNTERPARTY" shall mean Toyota Motor Credit Corporation, as swap
counterparty under the Interest Rate Swap Agreement, or any successor or
replacement swap counterparty from time to time under the Interest Rate Swap
Agreement.

         "SWAP EVENT OF DEFAULT" means (i) the failure of the Issuer or the Swap
Counterparty to pay any amount when due under the Interest Rate Swap Agreement
after giving effect to any applicable grace period; (ii) the occurrence of
certain events of insolvency or bankruptcy of the Issuer or the Swap
Counterparty as specified in the Interest Rate Swap Agreement and (iii) certain
other standard events of default under the 1992 ISDA Master Agreement as
specified in the Interest Rate Swap Agreement including "Breach of Agreement"
(not applicable to the

                                       8
<PAGE>

Issuer), "Misrepresentation" (not applicable to the Issuer) and "Merger without
Assumption," as described in Sections 5(a)(ii), 5(a)(iv) and 5(a)(viii) of the
1992 ISDA Master Agreement.

         "SWAP PAYMENTS INCOMING" means on any Payment Date the net amount, if
any, then payable by a Swap Counterparty to the Issuer, excluding any Swap
Termination Payments.

         "SWAP PAYMENTS OUTGOING" means on any payment Date the net amount, if
any, then payable by the Issuer to the Swap Counterparty, excluding any Swap
Termination Payments.

         "SWAP TERMINATION EVENT" means (i) certain events of insolvency of
bankruptcy of the Issuer or the Swap Counterparty as specified in the Interest
Rate Swap Agreement; (ii) any Event of Default under the Indenture that results
in the acceleration of the Notes or involving an uncured payment default; (iii)
the Issuer or Swap Counterparty becomes subject to registration as an
"investment company" under the Investment Company Act of 1940; and (iv) certain
standard termination events under the 1992 ISDA Master Agreement as specified in
the Interest Rate Swap Agreement including "Illegality," "Tax Event" and "Tax
Event Upon Merger," each as more fully described in Sections 5(b)(i), 5(b)(ii)
and 5(b)(iii) of the 1992 ISDA Master Agreement.

         "SWAP TERMINATION PAYMENT" means any termination payment payable by the
Issuer to the Swap Counterparty or by the Swap Counterparty to the Issuer under
the Interest Rate Swap Agreement.

          "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, without
limitation, all property and interests Granted to the Indenture Trustee pursuant
to the Granting Clause), including all proceeds thereof.

         "TRUST OFFICER" means, in the case of the Indenture Trustee, any
officer within the Corporate Trust Office of the Indenture Trustee, including
any Vice President, Assistant Vice President, Secretary, Assistant Secretary or
any other officer of the Indenture Trustee customarily performing functions
similar to those performed by any of the above designated officers 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 and, with respect to the Owner Trustee, any officer in the
Corporate Trust Administration Department of the Owner Trustee with direct
responsibility for the administration of the Trust Agreement and the Basic
Documents on behalf of the Owner Trustee.

         "TRUST INDENTURE ACT" or "TIA" means the Trust Indenture Act of 1939 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 at the relevant time.

         SECTION 1.02 USAGE OF TERMS. With respect to all terms in this
Agreement, the singular includes the plural and the plural the singular; words
importing any gender include the other genders; references to "writing" include
printing, typing, lithography and other means of reproducing words in a visible
form; references to agreements and other contractual instruments

                                       9
<PAGE>

include all subsequent amendments thereto or changes therein entered into in
accordance with their respective terms and not prohibited by this Agreement;
references to Persons include their permitted successors and assigns; and the
term "including" means "including without limitation."

         SECTION 1.03 INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.
Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture. The following
TIA terms used in this Indenture have the following meanings:

         "COMMISSION" means the Securities and Exchange Commission.

         "INDENTURE SECURITIES" means the Notes.

         "INDENTURE SECURITY HOLDER" means a Noteholder.

         "INDENTURE TO BE QUALIFIED" means this Indenture.

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

         "OBLIGOR" on the indenture securities means the Issuer and any other
obligor on the indenture securities. All other TIA terms used in this Indenture
that are defined in the TIA, defined in the TIA by reference to another statute
or defined by Commission rule have the meanings so assigned to them.

                                   ARTICLE II

                                    THE NOTES

         SECTION 2.01 FORM. The Class A-1 Notes, the Class A-2 Notes, the Class
A-3 Notes and the Class A-4 Notes, in each case together with the Indenture
Trustee's certificate of authentication, shall be in substantially the form set
forth in Exhibit A, 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 thereof. 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.

         The Definitive Notes shall be typewritten, printed, lithographed or
engraved or produced by any combination of these methods (with or without steel
engraved borders), all as determined by the officers executing such Notes, as
evidenced by their execution of such Notes.

         Each Note shall be dated the date of its authentication. The terms of
the Notes set forth in Exhibit A are part of the terms of this Indenture.

                                       10
<PAGE>

         SECTION 2.02 EXECUTION, AUTHENTICATION AND DELIVERY. The Notes shall 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 shall bind the Issuer,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Notes or did not hold
such offices at the date of such Notes. The Indenture Trustee shall upon Issuer
Order authenticate and deliver Class A-1 Notes for original issue in an
aggregate principal amount of $317,048,000.00, Class A-2 Notes for original
issue in an aggregate principal amount of $440,000,000.00, Class A-3 Notes for
original issue in an aggregate principal amount of $440,000,000.00 and Class A-4
Notes for original issue in an aggregate principal amount of $306,452,000.00.
The aggregate principal amount of the Class A-1 Notes, the Class A-2 Notes, the
Class A-3 Notes and the Class A-4 Notes outstanding at any time may not exceed
such respective amounts except as provided in Section 2.05. The Notes shall be
issuable as registered Notes in the minimum denomination $1,000. Each Note shall
be dated the date of its authentication.

         No Note shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose, unless there appears on such Note a
certificate of authentication substantially in the form included in Exhibit A,
executed by the Indenture Trustee by the manual or facsimile signature of one of
its authorized signatories, and such certificate upon any Note shall be
conclusive evidence, and the only evidence, that such Note has been duly
authenticated and delivered hereunder.

         SECTION 2.03 TEMPORARY NOTES. Pending the preparation of definitive
Notes, the Issuer may execute, and upon receipt of an Issuer Order the Indenture
Trustee shall authenticate and deliver, temporary Notes that are printed,
lithographed, typewritten, mimeographed or otherwise produced, of the tenor of
the definitive Notes in lieu of which they are issued and with such variations
not inconsistent with the terms of this Indenture as the officers executing such
Notes may determine, as evidenced by their execution of such Notes. If temporary
Notes are issued, the Issuer will cause definitive Notes to be prepared without
unreasonable delay. After the preparation of definitive Notes, the temporary
Notes shall be exchangeable for definitive Notes upon surrender of the temporary
Notes at the office or agency of the Issuer to be maintained as provided in
Section 3.02, without charge to the Holder. Upon surrender for cancellation of
any one or more temporary Notes, the Issuer shall execute, and the Indenture
Trustee shall authenticate and deliver in exchange therefor, a like principal
amount of definitive Notes of authorized denominations. Until so exchanged, the
temporary Notes shall in all respects be entitled to the same benefits under
this Indenture as definitive Notes.

         SECTION 2.04 REGISTRATION; REGISTRATION OF TRANSFER AND EXCHANGE.

         (a) The Note Registrar shall maintain a Note Register in which, subject
to such reasonable regulations as it may prescribe, the Note Registrar shall
provide for the registration of Notes and transfers and exchanges of Notes as
provided in this Indenture. The Indenture Trustee is hereby initially appointed
Note Registrar for the purpose of registering Notes and transfers and exchanges
of Notes as provided in this Indenture. In the event that, subsequent to the
Closing Date, the Indenture Trustee notifies the Issuer that it is unable to act
as Note Registrar, the Issuer shall appoint another bank or trust company,
having an office or agency located in the Borough

                                       11
<PAGE>

of Manhattan, The City of New York, agreeing to act in accordance with the
provisions of this Indenture applicable to it, and otherwise acceptable to the
Indenture Trustee, to act as successor Note Registrar under this Indenture.

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

         (b) No transfer of any Class A-1 Note shall be made unless such resale
or transfer is made (i) pursuant to an effective Registration Statement under
the Securities Act, (ii) in a transaction (other than a transaction in clause
(iv) below) exempt from the registration requirements of the Securities Act and
applicable state and foreign securities laws, (iii) to any Affiliate of TMCC or
(iv) to a Person who the transferor of such Class A-1 Note reasonably believes
is a qualified institutional buyer within the meaning of Rule 144A under the
Securities Act and that is aware that the resale or other transfer is being made
in reliance on Rule 144A or to an institutional "accredited investor" as defined
in Rule 501(a)(1), (2), (3) or (7) under the Securities Act (an "Institutional
Accredited Investor"). In the event that a transfer is to be made as described
in clause (ii) of the preceding sentence, the prospective transferee shall
deliver or cause to be delivered an Opinion of Counsel in the form and substance
satisfactory to the Issuer to the effect that such transfer may be made without
registration under the Securities Act or any applicable state or foreign
securities laws. In the event that a transfer is to be made to an institutional
accredited investor as described in clause (iv), the Indenture Trustee shall
require that the transferee execute a representation letter acceptable to and in
form and substance satisfactory to the Issuer certifying to the Indenture
Trustee the facts surrounding such transfer, which representation shall not be
an expense of the Indenture Trustee or the Servicer. In the case of a transfer
under either clause (ii) or clause (iv), the Holder of a Class A-1 Note desiring
to effect such transfer, shall and does hereby agree to, indemnify the Indenture
Trustee, the Issuer and the Servicer against any liability that may result if
the transfer is not so exempt or is not made in accordance with the Securities
Act and such state and foreign securities laws. Neither the Servicer, the Issuer
nor the Indenture Trustee is under any obligation to register any Class A-1
Notes under the Securities Act or any applicable state or foreign securities
laws. Prospective purchasers of the Class A-1 Notes are hereby notified that the
seller of any Class A-1 Notes may be relying on the exemption from the
registration requirements of Section 5 of the Act provided by Rule 144A under
the Act.

         The Class A-1 Notes, this Indenture and related documents may be
amended or supplemented from time to time without the consent of any Noteholder
to modify restrictions on and procedures for resale and other transfer of such
Class A-1 Notes to reflect any change in applicable law or regulation (or the
interpretation thereof) or practices relating to the resale or transfer of
restricted securities generally.

         (c) Upon the proper surrender for registration of transfer of any Note
at the office or agency of the Issuer to be maintained as provided in Section
3.02, the Issuer shall execute, and

                                       12
<PAGE>

the Indenture Trustee shall authenticate in the name of the designated
transferee or transferees, one or more new Notes of the same Class in authorized
denominations of a like aggregate principal amount.

         (d) At the option of the Holder, Notes may be exchanged for other Notes
of the same Class in any authorized denominations, of a like aggregate principal
amount, upon surrender of the Notes to be exchanged at such office or agency.
Whenever any Notes are so surrendered for exchange, the Issuer shall execute,
and the Indenture Trustee shall authenticate and the Noteholder shall obtain
from the Indenture Trustee, the Notes which the Noteholder making the exchange
is entitled to receive. Every Note presented or surrendered for registration of
transfer or exchange shall be accompanied by a written instrument of transfer in
form satisfactory to the Indenture Trustee and the Note Registrar duly executed
by the Holder thereof or his attorney duly authorized in writing.

         (e) No service charge shall be made for any registration of transfer or
exchange of Notes, but the Indenture Trustee may require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer or exchange of Notes.

         (f) All Notes surrendered for registration of transfer or exchange
shall be canceled and subsequently destroyed by the Indenture Trustee.

         SECTION 2.05 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 such security or
indemnity as may be required by it to hold the Issuer and the Indenture Trustee
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,
the Issuer shall execute, and upon its request the Indenture Trustee shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Note, a replacement Note of the same Class. In
connection with the issuance of any new Note under this Section, the Issuer may
require 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.

         If, after the delivery of such replacement Note or payment of a
destroyed, lost or stolen Note, 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 and the Indenture Trustee shall be entitled to recover
such replacement Note (or such payment) from the Person to whom it was delivered
or any Person taking such replacement Note from such Person to whom such
replacement Note was delivered or any assignee of such Person, except a bona
fide purchaser, and shall 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.

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

                                       13
<PAGE>

enforceable by anyone, and shall be entitled to all the benefits of this
Indenture equally and proportionately with any and all other Notes of the same
Class duly issued hereunder.

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

         SECTION 2.06 PERSONS DEEMED OWNERS. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Indenture Trustee and any
agent of the Issuer or the Indenture Trustee may treat the Person in whose name
any Note is registered (as of the day of determination) as the owner of such
Note for the purpose of receiving payments of principal of and interest, if any,
on such Note and for all other purposes whatsoever, and none of the Issuer, the
Indenture Trustee or any agent of the Issuer or the Indenture Trustee shall be
affected by notice to the contrary.

         SECTION 2.07 PAYMENTS OF PRINCIPAL AND INTEREST.

         (a) The Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and
the Class A-4 Notes shall accrue interest during each Interest Period at the
Class A-1 Rate, the Class A-2 Rate, the Class A-3 Rate and the Class A-4 Rate,
respectively, and such interest shall be payable on each related Payment Date as
specified in such Notes, pursuant to Section 5.06 of the Sale and Servicing
Agreement and Section 3.01 hereof. Any installment of interest or principal
payable on any Note that is punctually paid or duly provided for by the Issuer
on the applicable Payment Date shall be paid to the Person in whose name such
Note (or one or more Predecessor Notes) is registered on the Record Date. 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, except for the final installment of principal payable with respect
to such Note on a Payment Date or on the applicable Final Scheduled Payment
Date, which shall be payable as provided below. Such payment will be made by
check mailed first-class postage prepaid to such Person's address as it appears
on the Note Register on such Record Date or by wire transfer to the account
specified by the registered holder of any Note with a face amount of at least
$10,000,000. The funds represented by any such checks returned undelivered shall
be held in accordance with Section 3.03.

         (b) The principal of each Note shall be payable in installments on each
Payment Date pursuant to Section 5.06 of the Sale and Servicing Agreement and
subject to the availability of funds therefor. All principal payments on each
Class of Notes shall be made pro rata to the Noteholders of such Class entitled
thereto. In accordance with Section 10.01, the Indenture Trustee shall notify
the Person in whose name a Note is registered at the close of business on the
Record Date preceding the Payment Date on which the final installment of
principal of and interest on such Note will be paid. Such notice shall be mailed
or transmitted by facsimile not less than 15 nor more than 30 days prior to such
final Payment Date, shall specify that such final installment will be payable
only upon presentation and surrender of such Note and shall specify the place
where such Note may be presented and surrendered for payment of such
installment.

                                       14
<PAGE>

         (c) In the event that any withholding tax is imposed on the Trust's
payment (or allocations of income) to the Noteholders, such tax shall reduce
the amount otherwise distributable to the Noteholders in accordance with this
Section. The Issuer will instruct the Indenture Trustee regarding the
imposition of such withholding tax and, upon receiving such instruction, the
Indenture Trustee is hereby authorized and directed to retain from amounts
otherwise distributable to the Noteholders sufficient funds for the payment
of any tax that is legally owed by the Trust (but such authorization shall
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 the Noteholders shall be treated as cash distributed
to the Noteholders 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 any distribution (such as any distribution to
a Non-U.S. Person), the Indenture Trustee may in its sole discretion withhold
such amounts in accordance with this paragraph (c). In the event that any
Noteholder wishes to apply for a refund of any such withholding tax, the
Indenture Trustee shall reasonably cooperate with the Noteholder in making
such claim so long as the Noteholder agrees to reimburse the Indenture
Trustee for any out-of-pocket expenses incurred.

         SECTION 2.08 CANCELLATION. All Notes surrendered for payment,
registration of transfer or exchange shall, if surrendered to any Person
other than the Indenture Trustee, be delivered to the Indenture Trustee and
shall be promptly canceled by the Indenture Trustee. The Issuer may at any
time deliver to the Indenture Trustee for cancellation any Notes previously
authenticated and delivered hereunder which the Issuer may have acquired in
any manner whatsoever, and all Notes so delivered shall be promptly canceled
by the Indenture Trustee. No Notes shall be authenticated in lieu of or in
exchange for any Notes canceled as provided in this Section, except as
expressly permitted by this Indenture. All canceled Notes may be held or
disposed of by the Indenture Trustee in accordance with its standard
retention or disposal policy as in effect at the time unless the Issuer shall
direct by an Issuer Order that they be destroyed or returned to it; provided,
that such Issuer Order is timely and the Notes have not been previously
disposed of by the Indenture Trustee.

         SECTION 2.09 RELEASE OF COLLATERAL. Subject to Sections 10.01 and 11.01
and the terms of the Basic Documents, the Indenture Trustee shall release
property from the lien of this Indenture only upon receipt of an Issuer Request
accompanied by an Officer's Certificate, an Opinion of Counsel and Independent
Certificates in accordance with TIA Sections 314(c) and 314(d)(l) or an Opinion
of Counsel in lieu of such Independent Certificates to the effect that the TIA
does not require any such Independent Certificates.

         SECTION 2.10 BOOK-ENTRY NOTES. The Class A-2 Notes, the Class A-3 Notes
and the Class A-4 Notes, upon original issuance, will be issued in the form of
typewritten Notes representing the Book-Entry Notes, to be delivered to The
Depository Trust Company, the initial Clearing Agency, or a custodian therefor,
by, or on behalf of, the Issuer. The Book-Entry Notes shall be registered
initially on the Note Register in the name of Cede & Co., the nominee of the
initial Clearing Agency, and no Note Owner thereof will receive a definitive
Note representing such Note Owner's interest in such Note, except as provided in
Section 2.12. Unless and until definitive, fully registered Notes (the
"Definitive Notes") have been issued to such Note Owners pursuant to Section
2.12:

                                       15
<PAGE>

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

         (b) the Note Registrar and the Indenture Trustee shall be entitled to
deal with the Clearing Agency for all purposes of this Indenture (including the
payment of principal of and interest on the Book-Entry Notes and the giving of
instructions or directions hereunder) as the authorized representative of such
Note Owners;

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

         (d) the rights of such Note Owners shall be exercised only through the
Clearing Agency and shall be limited to those established by law and agreements
between such Note Owners and the Clearing Agency and/or the Clearing Agency
Participants pursuant to the Note Depository Agreement. Unless and until
Definitive Notes are issued in respect of the Book-Entry Notes 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 such Notes to such Clearing Agency Participants; and

         (e) whenever this Indenture requires or permits actions to be taken
based upon instructions or directions of Holders of the Class A-1 Notes, the
Class A-2 Notes, the Class A-3 Notes and/or the Class A-4 Notes evidencing a
specified percentage of the Outstanding Amount of the Notes or of any such Class
or of two or more of such Classes, the Clearing Agency shall be deemed to
represent such percentage only to the extent that it has received instructions
to such effect from Note Owners of Book-Entry Notes and/or Clearing Agency
Participants owning or representing, respectively, such required percentage of
the beneficial interest in such Notes and has delivered such instructions to the
Indenture Trustee.

         SECTION 2.11 NOTICES TO CLEARING AGENCY. Whenever a notice or other
communication to the Noteholders is required under this Indenture, unless and
until Definitive Notes shall have been issued to the Note Owners of Book-Entry
Notes pursuant to Section 2.12, the Indenture Trustee shall give all such
notices and communications specified herein to be given to Holders of the
Book-Entry Notes to the Clearing Agency and shall be deemed to have been given
as of the date of delivery to the Clearing Agency.

         SECTION 2.12 DEFINITIVE NOTES. The Class A-1 Notes, upon original
issuance, will be issued as Definitive Notes. In the case of the Book-Entry
Notes, if (i) the Owner Trustee or the Administrator 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 Owner Trustee and the Administrator are unable to locate a qualified
successor (and if the Administrator has made such determination, the
Administrator has given written notice thereof to the Indenture Trustee), (ii)
the Seller or the Administrator or the Indenture Trustee at its option advises
each other such party in writing that it elects to terminate the book-entry
system through the Clearing Agency or (iii) after the occurrence of an Event of
Default or a Servicer Default, owners of the Book-Entry Notes representing
beneficial interests aggregating at least 51% of the Outstanding Amount of the
Book-Entry Notes, advise the Indenture Trustee and the Clearing Agency in
writing that the continuation of a book-entry system through the Clearing Agency
or a successor thereto is no longer in the best interests of the Note Owners
acting together as a single

                                       16
<PAGE>

Class, then the Clearing Agency shall notify all Note Owners and the Indenture
Trustee of the occurrence of such event and of the availability of Definitive
Notes to Note Owners requesting the same. Upon surrender to the Indenture
Trustee of the typewritten Notes representing the Book-Entry Notes by the
Clearing Agency, accompanied by registration instructions, the Issuer shall
execute and the Indenture Trustee shall authenticate the Definitive Notes in
accordance with the instructions of the Clearing Agency. None of the Issuer, the
Note Registrar or the Indenture Trustee shall be liable for any delay in
delivery of such instructions and may conclusively rely on, and shall be
protected in relying on, such instructions. Upon the issuance of Definitive
Notes, the Indenture Trustee shall recognize the Holders of the Definitive Notes
as Noteholders. The Indenture Trustee, Issuer and Administrator shall not be
liable for any inability to locate a qualified successor Clearing Agency. From
and after the date of issuance of Definitive Notes, all notices to be given to
Noteholders will be mailed thereto at their addresses of record in the Note
Register as of the relevant Record Date. Such notices will be deemed to have
been given as of the date of mailing.

         SECTION 2.13 TAX TREATMENT. The Issuer has entered into this Indenture,
and the Notes will be issued, with the intention that, for federal, state and
local income, single business and franchise tax purposes, the Notes will qualify
as indebtedness of the Issuer secured by the Trust Estate. The Issuer, by
entering into this Indenture, and each Noteholder, by its acceptance of a Note
(and each Note Owner by its acceptance of an interest in the applicable
Book-Entry Note), agree to treat the Notes for federal, state and local income,
single business and franchise tax purposes as indebtedness of the Issuer.

                                  ARTICLE III

                                    COVENANTS

         SECTION 3.01 PAYMENTS TO NOTEHOLDERS, CERTIFICATEHOLDER, SWAP
COUNTERPARTY, SERVICER AND SELLER. In accordance with the terms of this
Indenture, the Issuer will duly and punctually (i) pay the principal of and
interest, if any, on the Notes in accordance with the terms of the Notes, (ii)
pay to the Swap Counterparty any Swap Payments Outgoing and Swap Termination
Payment when due, and (iii) release from the Collection Account, Principal
Distribution Account and Payahead Account all other amounts distributable or
payable from the Owner Trust Estate (including distributions to be made to the
Certificateholder on any Payment Date) under the Trust Agreement, Sale and
Servicing Agreement and Administration Agreement. Without limiting the
foregoing, and in order to fulfill such obligations, pursuant to Sections 8.02
and 8.04 hereof, the Issuer will cause the Servicer to direct the Indenture
Trustee to apply all amounts on deposit in the Collection Account, Payahead
Account and Reserve Account on a Payment Date deposited therein pursuant to the
Sale and Servicing Agreement (i) (a) for the benefit of the Class A-1 Notes, to
the Class A-1 Noteholders, (b) for the benefit of the Class A-2 Notes, to the
Class A-2 Noteholders, (c) for the benefit of the Class A-3 Notes, to the Class
A-3 Noteholders and (d) for the benefit of the Class A-4 Notes, to the Class A-4
Noteholders, in each case as set forth in Sections 5.06 and 5.07 of the Sale and
Servicing Agreement, (ii) for the benefit of the Certificateholder, to or as
directed by the Owner Trustee or the Administrator, as set forth in Sections
5.06 and 5.07 of the Sale and Servicing Agreement, (iii) for the benefit of the
Swap Counterparty , to or as directed by the Servicer pursuant to Section 5.06
of the Sale and Servicing Agreement, (iv) for the benefit of the Servicer, to or
as directed by the Servicer pursuant to Section 5.06 of the Sale and

                                       17
<PAGE>

Servicing Agreement, and (v) for the benefit of the Seller, to or as directed by
the Seller pursuant to Section 5.07 of the Sale and Servicing Agreement. Amounts
properly withheld under the Code by any Person from a payment to any Noteholder
or the Certificateholder of interest and/or principal shall be considered as
having been paid by the Issuer to such Noteholder or the Certificateholder for
all purposes of this Indenture.

         SECTION 3.02 MAINTENANCE OF OFFICE OR AGENCY. The Issuer will maintain
in the Borough of Manhattan, The City of New York, an office or agency where
Notes may be surrendered for registration of transfer or exchange, and where
notices and demands to or upon the Issuer in respect of the Notes and this
Indenture may be served. The Issuer hereby initially appoints U.S. Bank National
Association to serve as its agent for the foregoing purposes. The Issuer will
give prompt written notice to the Indenture Trustee of the location, and of any
change in the location, of any such office or agency. If at any time the Issuer
shall fail to maintain any such office or agency or shall fail to furnish the
Indenture Trustee with the address thereof, such surrenders, notices and demands
may be made or served at the Corporate Trust Office, and the Issuer hereby
appoints the Indenture Trustee as its agent to receive all such surrenders,
notices and demands.

         SECTION 3.03 MONEY FOR PAYMENTS TO BE HELD IN TRUST. All payments of
amounts due and payable with respect to any Notes or the Certificate or to the
Swap Counterparty (to the extent such payments to the Swap Counterparty were not
deducted from amounts remitted to the Collection Account by the Servicer
pursuant to Section 5.04(e) of the Sale and Servicing Agreement) that are to be
made from amounts withdrawn from the Collection Account, Principal Distribution
Account or Reserve Fund (provided that only the Collection Account is available
for any amounts payable to the Swap Counterparty) pursuant to Sections 2.07,
3.01, 4.02 and 4.03 shall be made on behalf of the Issuer by the Indenture
Trustee or by a Paying Agent, and no amounts so withdrawn from such accounts for
payments of Notes or the Certificate or to the Swap Counterparty (provided that
such amounts payable to the Swap Counterparty were not deducted from amounts
remitted to the Collection Account by the Servicer pursuant to Section 5.04(e)
of the Sale and Servicing Agreement) shall be paid over to the Issuer, the Owner
Trustee or the Administrator except as provided in this Section.

         On or before each Payment Date, the Issuer shall deposit in the
Collection Account or, in accordance with the Sale and Servicing Agreement,
cause to be deposited (including the provision of instructions to the Indenture
Trustee to make any required withdrawals from the Payahead Account or Reserve
Account and to deposit such amounts in the Collection Account) to the extent of
funds available therefor, an aggregate sum sufficient to pay the amounts then
becoming due under the Notes and the Certificate, such sum to be held in trust
for the benefit of the Persons entitled thereto, and (unless the Paying Agent is
the Indenture Trustee) shall promptly notify the Indenture Trustee of its action
or failure so to act.

         The Indenture Trustee, as Paying Agent, hereby agrees with the Issuer
that it will, and the Issuer will cause each Paying Agent other than the
Indenture Trustee, as a condition to its acceptance of its appointment as Paying
Agent, to execute and deliver to the Indenture Trustee

                                       18
<PAGE>

an instrument in which such Paying Agent shall agree with the Indenture Trustee,
subject to the provisions of this Section, that such Paying Agent will:

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

         (b) 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 or to the Swap
Counterparty or the release of any amounts to the Issuer to be paid to the
Certificateholder;

         (c) 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;

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

         (e) comply with all requirements of the Code with respect to the
withholding from any payments made by it on any Notes or the Certificate (or
assisting the Issuer to withhold from payment to the Certificateholder) or to
the Swap Counterparty of any applicable withholding taxes imposed thereon and
with respect to any applicable reporting requirements in connection therewith.

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

         Subject to applicable laws with respect to escheat of funds, any money
held by the Indenture Trustee or any Paying Agent in trust for the payment of
any amount due with respect to any Note and remaining unclaimed after such
amount has become due and payable and after the Indenture Trustee has taken the
steps described in the next paragraph shall be discharged from such trust and be
paid to the California Special Olympics upon presentation thereto of an Issuer
Request; and the Holder of such Note shall thereafter, as an unsecured general
creditor, look only to the Issuer for payment thereof, and all liability of the
Indenture Trustee or such Paying Agent with respect to such trust money shall
thereupon cease.

         In the event that any Noteholder shall not surrender its Notes for
retirement within six months after the date specified in the written notice of
final payment described in Section 2.07,

                                       19
<PAGE>

the Indenture will give a second written notice to the registered Noteholders
that have not surrendered their Notes for final payment and retirement. If
within one year after such second notice any Notes have not been surrendered,
the Indenture Trustee shall, at the expense and direction of the Issuer, cause
to be published once, in a newspaper published in the English language,
customarily published on each Business Day and of general circulation in The
City of New York, notice that such money remains unclaimed and that, after a
date specified therein, which shall not be less than 30 days from the date of
such publication, any unclaimed balance of such money then remaining will be
paid to California Special Olympics. The Indenture Trustee shall also adopt and
employ, at the expense and direction of the Issuer, any other reasonable means
of notification of such repayment specified by the Issuer or the Administrator.

         SECTION 3.04 EXISTENCE. The Issuer will keep in full effect its
existence, rights and franchises as a business 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 shall 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 or the Owner Trust Estate.

         SECTION 3.05 PROTECTION OF TRUST ESTATE. The Issuer will from time to
time 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:

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

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

         (c) enforce any of the Collateral (including all rights under the
Interest Rate Swap Agreement); or

         (d) preserve and defend title to the Trust Estate and the rights of the
Indenture Trustee and the Noteholders in such Trust Estate against the claims of
all persons and parties.

         The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to execute any financing statement, continuation statement or
other instrument required to be executed pursuant to this Section 3.05.

         SECTION 3.06 OPINIONS AS TO TRUST ESTATE.

         (a) On the Closing Date, the Issuer shall furnish to the Indenture
Trustee an Opinion of Counsel either stating that, in the opinion of such
counsel, such action has been taken with respect to the execution, recording and
filing of this Indenture, any indentures supplemental hereto, any requisite
financing statements and continuation statements and any other requisite
documents necessary to perfect and make effective the lien and security interest
of this Indenture

                                       20
<PAGE>

or stating that, in the opinion of such counsel, no such action is necessary to
make such lien and security interest effective.

         (b) As and when specified in Section 10.02(h) of the Sale and Servicing
Agreement, the Issuer shall furnish to the Indenture Trustee an Opinion of
Counsel either stating that, in the opinion of such counsel, such action has
been taken with respect to the execution, recording, filing or re-recording and
refiling of this Indenture, any indentures supplemental hereto, any financing
statements and continuation statements and any other requisite documents
necessary to maintain the lien and security interest created by this Indenture
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 shall also
describe the execution, recording, filing or re-recording and refiling of this
Indenture, any indentures supplemental hereto, any financing statements and
continuation statements and any other documents that will, in the opinion of
such counsel, be required to maintain the lien and security interest of this
Indenture until the date in the following calendar year on which such Opinion of
Counsel must again be delivered.

         SECTION 3.07 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, or impair the
validity or effectiveness of, any such instrument or agreement, except in each
case as expressly provided in the Basic Documents and the Interest Rate Swap
Agreement.

         (b) The Issuer may contract with other Persons to assist it in
performing its duties under this Indenture, and any performance of such duties
by a Person identified to the Indenture Trustee in an Officer's Certificate of
the Issuer shall be deemed to be action taken by the Issuer. Initially, the
Issuer has contracted with the Servicer and the Administrator to assist the
Issuer in performing its duties under this Indenture.

         (c) The Issuer will punctually perform and observe all of its
obligations and agreements contained in the Basic Documents and in the
instruments and agreements included in the Trust Estate, including but not
limited to filing or causing to be filed all UCC financing statements and
continuation statements required to be filed by the terms of the Trust
Agreement, this Indenture and the Sale and Servicing Agreement in accordance
with and within the time periods provided for herein and therein.

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

                                       21
<PAGE>

         (e) As promptly as possible after the giving of notice of termination
to the Servicer of the Servicer's rights and powers pursuant to Section 8.01 of
the Sale and Servicing Agreement, or if the Servicer resigns in accordance with
the terms of the Sale and Servicing Agreement, the Indenture Trustee shall give
prompt written notice of such event to the Noteholders and each Rating Agency
and shall act to appoint a successor servicer (the "Successor Servicer"). Any
such Successor Servicer shall accept its appointment by a written assumption in
a form acceptable to the Indenture Trustee. In the event that a Successor
Servicer has not been appointed and accepted its appointment as set forth in
Section 8.02 of the Sale and Servicing Agreement, the Indenture Trustee without
further action shall automatically be appointed the Successor Servicer and shall
thereafter be entitled to the Servicing Fee. Notwithstanding the above, the
Indenture Trustee shall, if it shall be unwilling or legally unable so to act,
appoint or petition a court of competent jurisdiction to appoint any established
institution having a net worth of not less than $50,000,000 and whose regular
business shall include the servicing of automobile and/or light-duty truck
receivables, as the successor to the Servicer under the Sale and Servicing
Agreement, in accordance with the provisions of Section 8.02 of the Sale and
Servicing Agreement. Upon such appointment, the Indenture Trustee will be
released from the duties and obligations of acting as Successor Servicer, such
release effective upon the effective date of the servicing agreement entered
into between the Successor Servicer and the Issuer.

         In connection with any such appointment, the Indenture Trustee may make
such arrangements for the compensation of such successor as it and such
Successor Servicer shall agree, subject to the limitations set forth below and
in the Sale and Servicing Agreement, and in accordance with Section 8.02 of the
Sale and Servicing Agreement, the Issuer shall enter into an agreement with such
successor for the servicing of the Receivables (such agreement to be in form and
substance satisfactory to the Indenture Trustee). If the Indenture Trustee shall
succeed to the Servicer's duties as servicer of the Receivables as provided
herein, it shall do so in its individual capacity and not in its capacity as
Indenture Trustee and, accordingly, the provisions of Article VI hereof shall be
inapplicable to the Indenture Trustee in its duties as Successor Servicer and
the servicing of the Receivables. In case the Indenture Trustee shall become the
Successor Servicer, the Indenture Trustee shall be entitled to appoint as a
subservicer any one of its affiliates, provided that the Indenture Trustee, in
its capacity as Successor Servicer, shall remain fully liable for the actions
and omissions of such Affiliate.

         (f) Without derogating from the absolute nature of the assignment
granted to the Indenture Trustee under this Indenture or the rights of the
Indenture Trustee hereunder, the Issuer agrees that it will not enter into any
amendment, modification, supplement or waiver with respect to any Basic Document
and the Interest Rate Swap Agreement except (i) to cure any ambiguity, to
correct or supplement any provisions in this Agreement or for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions in this Agreement or of modifying in any manner the rights of the
Noteholders or the Certificateholder, and in each case with the consent of the
Indenture Trustee (but without the consent of any of the Noteholders or the
Certificateholder) and delivery of an Opinion of Counsel delivered to the Owner
Trustee and the Indenture Trustee, to the effect that such action will not
adversely affect in any material respect the interests of any Noteholder or the
Certificateholder; (ii) for the purpose of changing the formula for determining
the Specified Reserve Account Balance, the manner in which the Reserve Account
is funded, changing the remittance schedule for the deposit of collections with
respect to the Receivables in the Collection Account or Payahead Account
pursuant to Section

                                       22
<PAGE>

5.02 of the Sale and Servicing Agreement or changing the definition of Eligible
Investment, in each case with the consent of the Indenture Trustee (but without
the consent of any of the Noteholders or the Certificateholder) if the Indenture
Trustee and/or the Owner Trustee, as the case may be, has received a letter from
each Rating Agency to the effect that such Rating Agency will not qualify,
reduce or withdraw the rating it has currently assigned to any Class of Notes as
a result of such amendment (provided that no such amendment may increase or
reduce in any manner or accelerate or delay the timing of collections on the
Receivables or payments required to be made to any Class of Notes or the
Certificate without the consent of all Holders of each affected Class); or (iii)
with the consent of the Indenture Trustee and satisfaction of all other
conditions precedent to such action set forth in the related Basic Document and
the Interest Rate Swap Agreement. If any such amendment, modification,
supplement or waiver shall be so consented to by the Indenture Trustee or such
Holders, as applicable, the Issuer agrees, promptly following a request by the
Indenture Trustee to agree to such amendment and to execute and deliver, in its
own name and at its own expense, such agreements, instruments, consents and
other documents as the Indenture Trustee may deem necessary or appropriate in
the circumstances to implement such amendment and to cause the relevant Basic
Documents and the Interest Rate Swap Agreement, as amended, to be enforceable
against the Issuer.

         SECTION 3.08 NEGATIVE COVENANTS. So long as any Notes are Outstanding,
the Issuer shall not:

         (a) except as expressly permitted by 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
Indenture Trustee;

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

         (c) except as may be expressly permitted hereby and by the Basic
Documents, (A) permit the validity or effectiveness of this Indenture to be
impaired, or permit the lien of 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, (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 any of the
Financed Vehicles 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) dissolve or liquidate
in whole or in part; or

         (d) assume or incur any indebtedness other than the Notes or as
expressly contemplated by this Indenture (in connection with the obligation to
reimburse Advances from the Trust Estate, or to pay expenses from the Trust
Estate) or by the Basic Documents as in effect on the date hereof.

                                       23
<PAGE>

         SECTION 3.09 ANNUAL STATEMENT AS TO COMPLIANCE. The Issuer will cause
the Servicer to deliver to the Indenture Trustee concurrently with its delivery
thereof to the Issuer the annual statement of compliance described in Section
4.11 of the Sale and Servicing Agreement. In addition, on the same date annually
upon which such annual statement of compliance is to be delivered by the
Servicer, the Issuer shall deliver to the Indenture Trustee an Officer's
Certificate stating, as to the Authorized Officer signing such Officer's
Certificate, that:

         (a) a review of the activities of the Issuer during such year and of
its performance under this Indenture has been made under such Authorized
Officer's supervision; and

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

         SECTION 3.10 ISSUER MAY CONSOLIDATE, ETC., ONLY ON CERTAIN TERMS.

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

                  (i) the Person (if other than the Issuer) formed by or
         surviving such consolidation or merger shall be a Person organized and
         existing under the laws of the United States of America or any State or
         the District of Columbia and shall expressly assume, by an indenture
         supplemental hereto, executed and delivered to the Indenture Trustee,
         in form satisfactory to the Indenture Trustee, the duty to make due and
         punctual payments of the principal of and interest on all Notes in
         accordance with the terms thereof 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;

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

                  (iii) each Rating Agency shall have notified the Indenture
         Trustee and the Owner Trustee that such transaction will not result in
         the removal or reduction of the rating then assigned thereby to any
         Class of Notes;

                  (iv) the Issuer shall have received an Opinion of Counsel (and
         shall have delivered copies thereof to the Indenture Trustee) to the
         effect that such transaction will not have any material adverse tax
         consequence to the Issuer, any Noteholder or any Certificateholder;

                  (v) any action that is necessary to maintain each lien and
         security interest created by the Trust Agreement, the Sale and
         Servicing Agreement or by this Indenture shall have been taken; and

                  (vi) the Issuer shall have delivered to the Indenture Trustee
         an Officer's Certificate and an Opinion of Counsel each stating that
         such consolidation or merger and any related supplemental indenture
         complies with this Section 3.10 and that all conditions

                                       24
<PAGE>

         precedent provided for in this Indenture relating to such transaction
         have been complied with (including any filing required by the Exchange
         Act).

         (b) Except as expressly provided in this Indenture or in the Basic
Documents, the Issuer shall not convey or transfer its properties or assets,
including those included in the Trust Estate, to any Person, unless: (i) the
Person that acquires by conveyance or transfer such properties and assets of the
Issuer shall (A) be a United States citizen or a Person organized and existing
under the laws of the United States of America or any State or the District of
Columbia, (B) expressly assume, by an indenture supplemental hereto, executed
and delivered to the Indenture Trustee, in form satisfactory to the Indenture
Trustee, the duty to make due and punctual payments 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, (C) expressly agrees by means of such
supplemental indenture that all right, title and interest so conveyed or
transferred shall be subject and subordinate to the rights of Holders of the
Notes, (D) unless otherwise provided in such supplemental indenture, expressly
agrees to indemnify, defend and hold harmless the Issuer, the Owner Trustee and
the Indenture Trustee against and from any loss, liability or expense arising
under or related to this Indenture and the Notes, and (E) expressly agrees by
means of such supplemental indenture that such Person (or if a group of Persons,
then one specified Person) shall make all filings that counsel satisfactory to
such purchaser or transferee and the Indenture Trustee determines must be made
with (1) the Commission (and any other appropriate Person) required by the
Exchange Act or the appropriate authorities in any State in which the Notes have
been sold pursuant to any qualification or exemption under the securities or
"blue sky" laws of such State, in connection with the Notes or (2) the Internal
Revenue Service or the relevant state or local taxing authorities of any
jurisdiction;

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

                  (iii) each Rating Agency shall have notified the Indenture
         Trustee and the Owner Trustee that such transaction might or would
         result in the removal or reduction of the rating then assigned thereby
         to any Class of Notes;

                  (iv) the Issuer shall have received an Opinion of Counsel (and
         shall have delivered copies thereof to the Indenture Trustee) to the
         effect that such transaction will not have any material adverse tax
         consequence to the Issuer, any Noteholder or any Certificateholder;

                  (v) any action that is necessary to maintain each lien and
         security interest created by the Trust Agreement, the Sale and
         Servicing Agreement or by this Indenture shall have been taken; and

                  (vi) the Issuer shall have delivered to the Indenture Trustee
         an Officer's Certificate and an Opinion of Counsel each stating that
         such conveyance or transfer and

                                       25
<PAGE>

         such supplemental indenture comply with this Section 3.10 and that all
         conditions precedent herein provided for relating to such transaction
         have been complied with (including any filing required by the Exchange
         Act).

         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) shall succeed to, and be substituted for, and may
exercise every right and power of, the Issuer under this Indenture with the same
effect as if such Person had been named as the Issuer herein.

         (b) Upon a conveyance or transfer of all the assets and properties of
the Issuer pursuant to Section 3.10(b), Toyota Auto Receivables 2001-A Owner
Trust will be released from every covenant and agreement of this Indenture to be
observed or performed on the part of the Issuer with respect to the Notes
immediately upon the delivery of written notice to the Indenture Trustee stating
that Toyota Auto Receivables 2001-A Owner Trust is to be so released.

         SECTION 3.12 NO OTHER BUSINESS. Unless and until the Issuer shall have
been released from its duties and obligations hereunder, the Issuer shall 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. Unless and until the Issuer shall have been
released from its duties and obligations hereunder, the Issuer shall not issue,
incur, assume, guarantee or otherwise become liable, directly or indirectly, for
any indebtedness except for the Notes or other obligations permitted hereunder
(including the obligation to reimburse Advances from the Trust Estate or pay
expenses from the Trust Estate) or under another Basic Document (including
indemnification expenses of the Issuer and certain fees and expenses of the
Servicer and the Administrator).

         SECTION 3.14 SERVICER'S NOTICE OBLIGATIONS. The Issuer shall cause the
Servicer to comply with all of its duties and obligations with respect to the
preparation of reports, the delivery of Officer's Certificates and Opinions of
Counsel and the giving of instructions and notices under the Sale and Servicing
Agreement (including, but not limited to, under Sections 3.02, 4.08, 4.10, 4.11,
4.12, 4.15, 5.08 and Article X thereof).

         SECTION 3.15 GUARANTEES, LOANS, ADVANCES AND OTHER LIABILITIES. Unless
and until the Issuer shall have been released from its duties and obligations
hereunder, except as contemplated by the Sale and Servicing Agreement, this
Indenture or the other Basic Documents, the Issuer shall 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.

                                       26
<PAGE>

         SECTION 3.16 CAPITAL EXPENDITURES. Unless and until the Issuer shall
have been released from its duties and obligations hereunder, the Issuer shall
not make any expenditure (by long-term or operating lease or otherwise) for
capital assets (either realty or personalty).

         SECTION 3.17 REMOVAL OF ADMINISTRATOR. So long as any Notes are
Outstanding, the Issuer shall not remove the Administrator without cause unless
so instructed by the Owner Trustee or the Indenture Trustee and unless each
Rating Agency shall have received 10 days' written notice thereof and shall not
have notified the Indenture Trustee, the Administrator or the Owner Trustee that
such removal might or would result in the removal or reduction of the rating
then assigned thereby to any Class of Notes.

         SECTION 3.18 RESTRICTED PAYMENTS. The Issuer shall not, directly or
indirectly, (i) pay any dividend or make any distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, to the Servicer, the Owner Trustee or the Certificateholder or
otherwise with respect to any ownership or equity interest or security in or of
the Issuer, (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 or payments to the Servicer, the
Owner Trustee and the Certificateholder as contemplated by, and to the extent
funds are available for such purpose under, the Basic Documents. 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. The Issuer shall give the
Indenture Trustee and the Rating Agencies prompt written notice of each Event of
Default hereunder, each default on the part of the Servicer or the Seller of its
obligations under the Sale and Servicing Agreement and each default on the part
of TMCC of its obligations under the Receivables Purchase Agreement. The
Indenture Trustee shall notify each Noteholder of record in writing of any Event
of Default promptly upon a Trust Officer obtaining actual knowledge thereof.
Such notices will be provided in accordance with Section 2.11 or 2.12, as
applicable.

         SECTION 3.20 FURTHER INSTRUMENTS AND ACTIONS. Upon request of the
Indenture Trustee, 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.

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

         SECTION 4.01 SATISFACTION AND DISCHARGE OF INDENTURE. This Indenture
shall cease to be of further effect with respect to the Notes except as to (i)
rights of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments
of principal thereof and interest thereon, (iv) Section 3.03, (v) the rights,
obligations and immunities of the Indenture Trustee hereunder (including the
rights of the Indenture Trustee under Section 6.07 and the obligations of the
Indenture Trustee under Sections

                                       27
<PAGE>

3.03 and 4.02), and (vi) the rights of Noteholders, the Certificateholder and
the Swap Counterparty 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, shall execute
proper instruments acknowledging satisfaction and discharge of this Indenture
with respect to the Notes, when:

         (a) either (1) all Notes theretofore authenticated and delivered (other
than Notes that have been destroyed, lost or stolen and that have been replaced
or paid as provided in Section 2.05 and Notes for whose payment money has
theretofore been deposited in trust or segregated and held in trust by the
Issuer and thereafter repaid to the Issuer or discharged from such trust, as
provided in Section 3.03) have been delivered to the Indenture Trustee for
cancellation and the Interest Rate Swap Agreement has been terminated and all
Swap Payments Outgoing and, if applicable, any Swap Termination Payments owed by
the Issuer to the Swap Counterparty has been paid or (2) all Notes not
theretofore delivered to the Indenture Trustee for cancellation have become due
and payable or will become due and payable within one year (either because the
Class A-4 Final Scheduled Payment Date is within one year or because the
Indenture Trustee has received notice of the exercise of the option granted
pursuant to Section 9.01 of the Sale and Servicing Agreement) and the Issuer 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 and the Swap Counterparty;

         (b) the Issuer has paid or caused to be paid all other sums payable
hereunder by the Issuer; and

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

         SECTION 4.02 APPLICATION OF TRUST MONEY. All moneys deposited with the
Indenture Trustee pursuant to Section 4.01 hereof shall be held in trust and (a)
applied by it in accordance with the provisions of the Notes and this Indenture
to the payment, either directly or through any Paying Agent, as the Indenture
Trustee may determine, to the Holders of the particular Notes for the payment of
which such moneys have been deposited with the Indenture Trustee, of all sums
due and to become due thereon for principal and interest, (b) applied by it in
accordance with the provisions of the Interest Rate Swap Agreement, the Sale and
Servicing Agreement and this Indenture to the payment, either directly or
through any Paying Agent, as the Indenture Trustee may determine, to the Swap
Counterparty any Swap Payments Outgoing or Swap Termination Payment due
(provided that such amounts were not deducted from amounts remitted to the
Collection Account by the Servicer pursuant to Section 5.04(e) of the Sale and
Servicing Agreement), or (c) released to the Owner Trustee for distribution to
the Certificateholder or application pursuant to the Trust Agreement or Sale and
Servicing Agreement; but such moneys

                                       28
<PAGE>

need not be segregated from other funds except to the extent required herein or
in the Sale and Servicing Agreement or required by law.

         SECTION 4.03 REPAYMENT OF MONEYS HELD BY PAYING AGENT. In connection
with the satisfaction and discharge of this Indenture with respect to the Notes,
all moneys then held by any Paying Agent other than the Indenture Trustee under
the provisions of this Indenture with respect to such Notes shall, upon demand
of the Issuer, be paid to the Indenture Trustee to be held and applied according
to Section 3.03 or 4.02 and thereupon such Paying Agent shall be released from
all further liability with respect to such moneys.

                                   ARTICLE V

                                    REMEDIES

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

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

         (b) default in the payment of the principal of or any installment of
the principal of any Note when the same becomes due and payable; or

         (c) default in the observance or performance of any covenant or
agreement of the Issuer made in this Indenture (other than a covenant or
agreement, a default in the observance or performance of which is elsewhere in
this Section specifically dealt with) which shall continue or not be cured for a
period of 90 days after there shall have 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
acting together as a single class, a written notice specifying such default and
requiring it to be remedied and stating that such notice is a notice of Default
hereunder;

         (d) any representation or warranty of the Issuer made in this Indenture
or in any certificate or other writing delivered pursuant hereto or in
connection herewith shall prove to have been incorrect in any material respect
as of the time when the same shall have been made, and such default shall
continue or not be cured, or the circumstance or condition in respect of which
such misrepresentation or warranty was incorrect shall not have been eliminated
or otherwise cured, for a period of 30 days after there shall have 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 acting together as a single class, a written
notice specifying such incorrect representation or warranty and requiring it to
be remedied and stating that such notice is a notice of Default hereunder; or

                                       29
<PAGE>

         (e) the filing of a decree or order for relief by a court having
jurisdiction in the premises in respect of the Issuer or any substantial part of
the 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 shall remain unstayed and in effect for a period of 90
consecutive days;

         (f) the commencement by the Issuer of a voluntary case under any
applicable federal or state bankruptcy, insolvency or other similar law now or
hereafter in effect, or the consent by the Issuer to the entry of an order for
relief in an involuntary case under any such law, or the consent by the Issuer
to the appointment or taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of the Issuer or for any
substantial part of the 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 pay its debts as such debts become due, or the taking of any action by the
Issuer in furtherance of any of the foregoing; or

         (g) termination of the Interest Rate Swap Agreement on the Early
Termination Date (as defined in the Interest Rate Swap Agreement), without the
execution by the Trust and a replacement Swap Counterparty of a replacement
Interest Rate Swap Agreement with substantially the same terms as the Interest
Rate Swap Agreement and acceptable to the Issuer and the Indenture Trustee and
the assignment of such replacement Interest Rate Swap Agreement to the Indenture
Trustee.

         For purposes of determining whether an Event of Default pursuant to
Section 5.01(b) has occurred, the amount of principal required to be paid to the
Holders of any Class of Notes on any Payment Date is the amount available to be
paid thereto as principal pursuant to Sections 5.06(c) and (d) of the Sale and
Servicing Agreement; provided however that (i) the Class A-1 Notes are required
to be paid in full on or before the Class A-1 Final Scheduled Payment Date,
meaning that Holders of Class A-1 Notes are entitled to have received on or
before such date payments in respect of principal in an aggregate amount equal
to the Class A-1 Initial Principal Balance together with all interest accrued
thereon through such date; (ii) the Class A-2 Notes are required to be paid in
full on or before the Class A-2 Final Scheduled Payment Date, meaning that
Holders of Class A-2 Notes are entitled to have received on or before such date
payments in respect of principal in an aggregate amount equal to the Class A-2
Initial Principal Balance together with all interest accrued thereon through
such date, (iii) the Class A-3 Notes are required to be paid in full on or
before the Class A-3 Final Scheduled Payment Date, meaning that Holders of Class
A-3 Notes are entitled to have received on or before such date payments in
respect of principal in an aggregate amount equal to the Class A-3 Initial
Principal Balance together with all interest accrued thereon through such date
and (iv) the Class A-4 Notes are required to be paid in full on or before the
Class A-4 Final Scheduled Payment Date, meaning that Holders of Class A-4 Notes
are entitled to have received on or before such date payments in respect of
principal in an aggregate amount equal to the Class A-4 Initial Principal
Balance together with all interest accrued thereon through such date.

         The Issuer shall deliver to the Indenture Trustee and the Swap
Counterparty, within five days after the occurrence thereof, written notice in
the form of an Officer's Certificate of any

                                       30
<PAGE>

Default which with the giving of notice or the lapse of time would become an
Event of Default under clause (c), the status of such Default and any action the
Issuer is taking or proposes to take with respect thereto.

         SECTION 5.02 ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT. If an
Event of Default should occur and be continuing, then and in every such case the
Indenture Trustee or the Holders of at least 51% of the Outstanding Amount of
the Class A Notes acting together as a single Class (excluding for such purposes
the outstanding principal amount of any Notes held of record or beneficially
owned by TMCC, TMCRC or any of their Affiliates), may, without the consent of
the Certificateholder, declare all the Notes to be immediately due and payable,
by a notice in writing to the Issuer (and to the Indenture Trustee if given by
Noteholders), and upon any such declaration the unpaid principal amount of such
Notes, together with accrued and unpaid interest thereon through the date of
acceleration, shall become immediately due and payable.

         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
Holders of Class A Notes representing at least 51% of the Outstanding Amount of
the Class A Notes (excluding for such purposes the outstanding principal amount
of any Notes held of record or beneficially owned by TMCC, TMCRC or any of their
Affiliates), acting together as a single Class, without the consent of the
Certificateholder, in each case, by written notice to the Issuer and the
Indenture Trustee, may rescind and annul such declaration and its consequences
if:

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

                  (i) all payments of principal of and interest on the
         respective Class of Notes and all other amounts that would then be due
         hereunder (including all payments payable to the Swap Counterparty
         under the Interest Rate Swap Agreement) or in accordance with the terms
         of the Notes if the Event of Default giving rise to such acceleration
         had not occurred; and

                  (ii) 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

         (b) all Events of Default, other than the nonpayment of the principal
or interest of the Notes that has become due solely by such acceleration, have
been cured or waived as provided in Section 5.12.

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

                                       31
<PAGE>

         Section 5.03 COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY
INDENTURE TRUSTEE.

         (a) The Issuer covenants that if (i) Default is made in the payment of
any interest on any Class A Note, so long as any amounts remain unpaid with
respect to the Class A Notes, when the same becomes due and payable, and such
default continues 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 (as described in the penultimate paragraph of
Section 5.01 hereof), the Issuer will, upon demand of the Indenture Trustee, pay
to the Indenture Trustee, for the benefit of the Holders of the Notes, the whole
amount then due and payable on such Class of Notes for principal and interest,
with interest upon the overdue principal and, to the extent payment at such rate
of interest shall be legally enforceable, upon overdue installments of interest
at the rate borne by the Notes and in addition thereto such further amount as
shall 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) In case the Issuer shall fail forthwith to pay such amounts upon
such demand, the Indenture Trustee, in its own name and as trustee of an express
trust, may institute a Proceeding for the collection of the sums so due and
unpaid, and may prosecute such Proceeding to judgment or final decree, and may
enforce the same against the Issuer or other obligor upon such Notes and collect
in the manner provided by law out of the property of the Issuer or other obligor
upon such Notes, wherever situated, the moneys adjudged or decreed to be
payable.

         (c) If an Event of Default occurs and is continuing, the Indenture
Trustee may, as more particularly provided in Section 5.04, in its discretion,
proceed to protect and enforce its rights and the rights of the Noteholders and,
incidentally thereto, the Certificateholder, by such appropriate Proceedings as
the Indenture Trustee shall deem most effective to protect and enforce any such
rights, whether for the specific enforcement of any covenant or agreement in
this Indenture or in aid of the exercise of any power granted herein, or to
enforce any other proper remedy or legal or equitable right vested in the
Indenture Trustee by this Indenture or by law.

         (d) In case there shall be pending, relative to the Issuer or any other
obligor upon the Notes or any Person having or claiming an ownership interest in
the 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 shall have been appointed for or
taken possession of the Issuer or its property or such other obligor or Person,
or in case of any other comparable judicial Proceedings relative to the Issuer
or other obligor upon the Notes, or to the creditors or property of the Issuer
or such other obligor, then, irrespective of whether the principal of any Notes
shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Indenture Trustee shall have made any
demand pursuant to the provisions of this Section, the Indenture Trustee shall
be entitled and empowered, by intervention in such Proceedings or otherwise:

                  (i) to file and prove a claim or claims for the whole amount
         of principal and interest owing and unpaid in respect of the Notes and
         the Certificate, and to file such

                                       32
<PAGE>

         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 or bad faith) and of the
         Noteholders or the Certificateholder allowed in such Proceedings;

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

                  (iii) to collect and receive any 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 or the
         Certificateholder and of the Indenture Trustee on their behalf; and

                  (iv) to file such proofs of claim and other papers or
         documents as may be necessary or advisable in order to have the claims
         of the Indenture Trustee or the Holders of Notes allowed in any
         judicial proceedings relative to the Issuer, its creditors and its
         property; and any trustee, receiver, liquidator, custodian or other
         similar official in any such Proceeding is hereby authorized by each of
         such Noteholders to make payments to the Indenture Trustee and, in the
         event that the Indenture Trustee shall consent to the making of
         payments directly to such Noteholders, to pay to the Indenture Trustee
         such amounts as shall be sufficient to cover reasonable compensation to
         the Indenture Trustee, each predecessor Indenture Trustee and their
         respective agents, attorneys and counsel, and all other expenses and
         liabilities incurred, and all advances made, by the Indenture Trustee
         and each predecessor Indenture Trustee except as a result of negligence
         or bad faith.

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

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

                                       33
<PAGE>

         (g) In any Proceedings brought by the Indenture Trustee (and also any
Proceedings involving the interpretation of any provision of this Indenture to
which the Indenture Trustee shall be a party), the Indenture Trustee shall be
held to represent all the Noteholders, and it shall not be necessary to make any
Noteholder a party to any such Proceedings.

         SECTION 5.04 REMEDIES; PRIORITIES; INSOLVENCY OF SELLER.

         (a) If an Event of Default under Section 5.01 shall have occurred and
be continuing which results in the acceleration of the Notes (whether or not the
Trust Estate is sold in one or more public or private sales as provided in
Section 5.04(c)(iv)), and unless and until such acceleration has been rescinded,
the Indenture Trustee will make payments on the Notes and the Certificate as set
forth in Section 5.06(d) of the Sale and Servicing Agreement, rather than
pursuant to Section 5.06(c).

         (b) If the Indenture Trustee, in compliance with Section 5.04(a), is
deemed to have a conflict of interest under the TIA and is required to resign as
Indenture Trustee hereunder, the Indenture Trustee, pursuant to Section 6.10,
may appoint an indenture trustee to act separately hereunder for the Class A
Notes. In the event a separate indenture trustee is appointed for the Class A
Notes, so long as any amounts remain unpaid with respect to the Class A Notes,
only the Indenture Trustee for the Class A Noteholders shall be entitled to
waive any Event of Default or Servicer Default or exercise any remedies under
this Indenture.

         (c) In accordance with Section 5.03, if an Event of Default shall have
occurred and be continuing, the Indenture Trustee may do one or more of the
following (subject to Section 5.05):

                  (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 to the Swap Counterparty or under this Indenture with respect
         thereto, whether by declaration or otherwise, enforce any judgment
         obtained, and collect from the Issuer, the Swap Counterparty 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 Noteholders; 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,
         notwithstanding anything in this Indenture to the contrary, the
         Indenture Trustee may not sell or otherwise liquidate the Trust Estate
         following an Event of Default, other than an Event of Default described
         in Section 5.01(a) or (b), unless (A) the Holders of 100% of the
         Outstanding Amount of the Class A Notes consent thereto or (B) 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 (C) the Indenture Trustee
         determines that the Trust Estate will not continue to

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<PAGE>

         provide sufficient funds on an ongoing basis to make all payments 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 obtains the consent of Holders of 66-2/3% of the Outstanding
         Amount of the Class A Notes (acting together as a single class). In
         determining such sufficiency or insufficiency with respect to clause
         (B) and (C), the Indenture Trustee may, but need not, obtain and rely
         upon an opinion of an Independent investment banking or accounting firm
         of national reputation as to the feasibility of such proposed action
         and as to the sufficiency of the Trust Estate for such purpose. In
         connection with any such sale, the Indenture Trustee will afford the
         Holders of each Class of Notes adequate advance notice and information
         as to the conduct of such sale such that any such Holders (acting
         individually, as Classes, as a single Class or otherwise) will be
         reasonably able to submit bids for the purchase of the assets to be
         liquidated, and that the Indenture Trustee will consider any and all
         such bids on the same basis that it considers any other bids submitted
         by any other party or parties. The proceeds of such sale or liquidation
         (net of the expenses incurred by the Indenture Trustee in connection
         with the conduct thereof, which will be retained by the Indenture
         Trustee from such proceeds) will be treated as collections and
         deposited into the Collection Account by the Indenture Trustee for
         distribution to the Noteholders and the Certificateholder in accordance
         with the priorities specified in Section 5.06(d) of the Sale and
         Servicing Agreement. The Indenture Trustee will have no liability with
         respect to the amount of such proceeds or the adequacy thereof to make
         payments in full of any Class of Notes or the Certificate.

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

         (d) If an Insolvency Event occurs with respect to the Seller, the
Indenture Trustee (or the Indenture Trustee for the Class A Notes, pursuant to
Section 5.04(c)) will 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 and in a commercially reasonable manner and on
commercially reasonable terms in accordance with the provisions of Section 9.02
of the Trust Agreement; PROVIDED, HOWEVER, that the Indenture Trustee (or the
Indenture Trustee for the Class A Notes, pursuant to Section 5.04(c)) may not
sell or otherwise liquidate the Trust Estate in connection with such event if,
prior to the termination of the Trust Agreement pursuant to Section 9.02 of the
Trust Agreement, the Holders of at least 51% of the Outstanding Amount of the
Class A Notes so long as any amounts remain unpaid with respect to such Notes
(excluding from such action and calculation all Notes held by TMCC, TMCRC or any
of their Affiliates) notify the Indenture Trustee in writing that they
disapprove of such sale or liquidation and the termination of trusts created
hereby in connection therewith; and PROVIDED, FURTHER, that in connection with
any such sale the Indenture Trustee will afford the Holders of each Class of
Notes adequate advance notice and information as to the conduct of such sale
such that any such Holders (acting individually, as Classes, as a single Class
or otherwise) will be reasonably able to submit bids for the purchase of the
assets to be liquidated, and that the Indenture Trustee will consider any and
all such bids on the same basis that it considers any other bids submitted by
any other party or parties. The proceeds of such sale or liquidation (net of the
expenses incurred by

                                       35
<PAGE>

the Indenture Trustee in connection with the conduct thereof, which will be
retained by the Indenture Trustee from such proceeds) will be treated as
collections and deposited into the Collection Account by the Indenture Trustee
for distribution to the Noteholders and Certificateholders in accordance with
the priorities specified in Section 5.06(d) of the Sale and Servicing Agreement.
The Indenture Trustee will have no liability with respect to the amount of such
proceeds or the adequacy thereof to make payments in full of any Class of Notes
or the Certificate. The Indenture Trustee may, but need not, obtain and rely
upon an opinion of an Independent investment banking or accounting firm of
national reputation as to the commercial reasonableness of the conduct of any
such sale or liquidation and as to the expenses incurred by the Indenture
Trustee in connection therewith, the costs of which may be retained by the
Indenture Trustee from the proceeds of such sale or liquidation.

         SECTION 5.05 OPTIONAL PRESERVATION OF THE RECEIVABLES. Except as
provided in Section 5.04(c)(iv), if the Notes have been declared to be due and
payable under Section 5.02 following an Event of Default and such declaration
and its consequences have not been rescinded and annulled, the Indenture Trustee
may, unless otherwise directed by the Holders of at least 51% of the Outstanding
Amount of the Class A Notes, acting together as a single class (excluding from
such action and calculation all Notes held by TMCC, TMCRC or any of their
Affiliates), but need not, elect to maintain possession of the Trust Estate and
direct the Issuer, Servicer and Administrator not to take steps to liquidate the
Receivables. It is the desire of the parties hereto, the Swap Counterparty and
the Noteholders that there be at all times sufficient funds for the payment of
any obligations under the Interest Rate Swap Agreement to the Swap Counterparty
and principal of and interest on the Notes, and the Indenture Trustee shall 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 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 5.06 LIMITATION OF SUITS. No Holder of any Note shall have any
right to institute any Proceeding, judicial or otherwise, with respect to this
Indenture or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless such Holder has previously given written notice to the
Indenture Trustee of a continuing Event of Default, and:

         (a) the Event of Default arises from the Servicer's failure to remit
payments when due or

         (b) the Holders of not less than 25% of the Outstanding Amount of the
Class A Notes, acting together as a single class, have made written request to
the Indenture Trustee to institute such Proceeding in respect of such Event of
Default in its own name as Indenture Trustee hereunder and have offered to the
Indenture Trustee reasonable indemnity against the costs, expenses and
liabilities to be incurred in complying with such request and the Indenture
Trustee for 30 days after its receipt of such notice, request and offer of
indemnity has failed to institute such Proceedings.

         It is understood and intended that no one or more Holders of Notes
shall have any right in any manner whatever by virtue of, or by availing of, any
provision of this Indenture to affect,

                                       36
<PAGE>

disturb or prejudice the rights of any other Holders of Notes or to obtain or to
seek to obtain priority or preference over any other Holders or to enforce any
right under this Indenture, except in the manner herein provided.

         SECTION 5.07 UNCONDITIONAL RIGHTS OF NOTEHOLDERS TO RECEIVE PRINCIPAL
AND INTEREST. Notwithstanding any other provisions in this Indenture, the Holder
of any Note shall have the right, which is absolute and unconditional, to
receive payment of the principal of and interest, if any, on such Note on or
after the respective due dates thereof expressed in such Note and in this
Indenture (in each case with reference to the calculations to be made pursuant
to the Sale and Servicing Agreement) and to institute suit for the enforcement
of any such payment, and such right shall not be impaired without the consent of
such Holder.

         SECTION 5.08 RESTORATION OF RIGHTS AND REMEDIES. If the Indenture
Trustee 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 shall, subject to any determination in
such Proceeding, be restored severally and respectively to their former
positions hereunder, and thereafter all rights and remedies of the Indenture
Trustee and the Noteholders shall continue as though no such Proceeding had been
instituted.

         SECTION 5.09 RIGHTS AND REMEDIES CUMULATIVE. No right or remedy herein
conferred upon or reserved to the Indenture Trustee or to the Noteholders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law
or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

         SECTION 5.10 DELAY OR OMISSION NOT A WAIVER. No delay or omission of
the Indenture Trustee or any Holder of any Note to exercise any right or remedy
accruing upon any Default or Event of Default shall impair any such right or
remedy or constitute a waiver of any such Default or Event of Default or an
acquiescence therein. Every right and remedy given by this Article 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.

         SECTION 5.11 CONTROL BY NOTEHOLDERS. The Holders of at least 51% of the
Outstanding Amount of the Class A Notes, acting together as a single class,
shall have the right to direct the time, method and place of conducting any
Proceeding for any remedy available to the Indenture Trustee with respect to the
Notes or exercising any trust or power conferred on the Indenture Trustee;
provided that:

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

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<PAGE>

                  (ii) any direction to the Indenture Trustee to sell or
         liquidate the Trust Estate shall be by Holders of Notes representing
         not less than percentages of the Outstanding Amount of the Notes of the
         relevant Class set forth in Section 5.04 or 5.05, as applicable
         (excluding for such purposes the outstanding principal amount of any
         Notes held of record or beneficially owned by TMCC, TMCRC or any of
         their Affiliates); and

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

         Notwithstanding the rights of Noteholders set forth in this Section,
subject to Sections 5.07 and 6.01, the Indenture Trustee need not take any
action that it determines would be illegal or may not lawfully be taken, might
subject it to personal liability or would be unduly prejudicial to the rights of
any Noteholders not consenting to such action.

         SECTION 5.12 WAIVER OF PAST DEFAULTS. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.02 or the
liquidation or sale of the Trust Estate pursuant to Section 5.04, the Holders of
Class A Notes representing at least 51% of the Outstanding Amount of the Class A
Notes (acting together as a single Class), without the consent of the Holder of
the Certificate (excluding for such purposes the outstanding principal amount of
any Notes held of record or beneficially owned by TMCC, TMCRC or any of their
Affiliates); may waive any past Default, Event of Default or Servicer Default
and its consequences except a (a) Servicer Default in the deposit of collections
or other required amounts into the Collection Account, Principal Distribution
Account, Payahead Account or Reserve Fund, or (b) Default in respect of a
covenant or provision hereof that 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 shall be restored to their
former positions and rights hereunder, respectively; but no such waiver shall
extend to any subsequent or other Default or impair any right consequent
thereto.

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

         SECTION 5.13 UNDERTAKING FOR COSTS. All parties to this Indenture
agree, and each Holder of any Note or Note Owner by such Holder's acceptance of
such Note or beneficial interest therein, as the case may be, shall 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 reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to (a) any suit instituted by the
Indenture Trustee, (b) any suit instituted by any Noteholder, or group of
Noteholders, in each case holding in the aggregate more than 25% of the
Outstanding Amount of Notes, or (c) any suit instituted by any Noteholder for
the

                                       38
<PAGE>

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.

         SECTION 5.14 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 5.15 ACTION ON NOTES. The Indenture Trustee's right to seek and
recover judgment on the Notes or under this Indenture shall not be affected by
the seeking, obtaining or application of any other relief under or with respect
to this Indenture. Neither the lien of this Indenture nor any rights or remedies
of the Indenture Trustee or the Noteholders shall be impaired by the recovery of
any judgment by the Indenture Trustee against the Issuer or by the levy of any
execution under such judgment upon any portion of the Trust Estate or upon any
of the assets of the Issuer. Any money or property collected by the Indenture
Trustee shall be applied in accordance with Section 5.06.

         SECTION 5.16 PERFORMANCE AND ENFORCEMENT OF CERTAIN OBLIGATIONS.

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

         (b) If an Event of Default has occurred and is continuing, the
Indenture Trustee may, and at the direction (which direction shall be in writing
or by telephone, confirmed in writing promptly thereafter) of the Holders of
66-2/3% of the Outstanding Amount of the Class A Notes (acting together as a
single class but excluding for such purposes the outstanding principal amount of
any Notes held of record or beneficially owned by TMCC, TMCRC or any of their
Affiliates), shall exercise all rights, remedies, powers, privileges and claims
of the Issuer against the Seller, the Servicer or the Swap Counterparty under or
in connection with the Sale and Servicing Agreement and the Interest Rate Swap
Agreement, against the Seller under or in connection with the Receivables
Purchase Agreement, or against the Administrator under the Administration
Agreement, including the right or power to take any action to compel or secure
performance or observance by the Seller, the Servicer or the Administrator, of
each of their

                                       39
<PAGE>

obligations to the Issuer thereunder and to give any consent, request, notice,
direction, approval, extension, or waiver thereunder and any right of the Issuer
to take such action shall be suspended.

                                   ARTICLE VI

                              THE INDENTURE TRUSTEE

         SECTION 6.01 DUTIES OF INDENTURE TRUSTEE.

         (a) The Indenture Trustee, both prior to and after the occurrence of a
Servicer Default under the Sale and Servicing Agreement, undertakes to perform
such duties and only such duties as are specifically set forth in this
Indenture.

         (b) The Indenture Trustee, upon receipt of all resolutions,
certificates, statements, opinions, reports, documents, orders or other
instruments furnished to the Indenture Trustee that shall be specifically
required to be furnished pursuant to any provision of this Indenture, shall
examine them to determine whether they conform on their face to the requirements
of this Indenture.

         (c) No provision of this Indenture shall be construed to relieve the
Indenture Trustee from liability for its own negligent action, its own negligent
failure to act, its own bad faith or its own willful misfeasance; PROVIDED,
HOWEVER, that:

                  (i) the duties and obligations of the Indenture Trustee shall
         be determined solely by the express provisions of this Indenture, the
         Indenture Trustee shall not be liable except for the performance of
         such duties and obligations as are specifically set forth in this
         Indenture, no implied covenants or obligations shall be read into this
         Indenture against the Indenture Trustee, the permissive right of the
         Indenture Trustee to do things enumerated in this Indenture shall not
         be construed as a duty and, in the absence of bad faith on the part of
         the Indenture Trustee, the Indenture Trustee may conclusively rely, as
         to the truth of the statements and the correctness of the opinions
         expressed therein, upon any certificates or opinions furnished to the
         Indenture Trustee and conforming on their face to the requirements of
         this Indenture;

                  (ii) the Indenture Trustee shall not be personally liable for
         an error of judgment made in good faith by a Trust Officer, unless it
         shall be proved that the Indenture Trustee was negligent in performing
         its duties in accordance with the terms of this Indenture; and

                  (iii) the Indenture Trustee shall not be personally liable
         with respect to any action taken, suffered or omitted to be taken in
         good faith in accordance with the direction of the Holders of at least
         51% of the Outstanding Amount of the Class A Notes (acting together as
         a single class but excluding for such purposes the outstanding
         principal amount of any Notes held of record or beneficially owned by
         TMCC, TMCRC or any of their Affiliates) relating to the time, method
         and place of conducting any

                                       40
<PAGE>

         proceeding for any remedy available to the Indenture Trustee, or
         exercising any trust or power conferred upon the Indenture Trustee
         under this Indenture. Moreover, if more than one Indenture Trustee has
         been appointed, each Indenture Trustee shall owe any and all fiduciary
         duties only to the Class or Classes of Notes on whose behalf it shall
         have been appointed.

         (d) The Indenture Trustee shall not be required to expend or risk its
own funds or otherwise incur financial liability in the performance of any of
its duties under this Indenture, or in the exercise of any of its rights or
powers, if there shall be reasonable grounds for believing that the repayment of
such funds or adequate indemnity against such risk or liability is not
reasonably assured to it.

         (e) All information obtained by the Indenture Trustee regarding the
Obligors and the Receivables contained in the Trust, whether upon the exercise
of its rights under this Indenture or otherwise, shall be maintained by the
Indenture Trustee in confidence and shall not be disclosed to any other Person,
unless such disclosure is required by any applicable law or regulation or
pursuant to subpoena.

         (f) Pursuant to Sections 3.02 and 4.08 of the Sale and Servicing
Agreement, in the event that a Trust Officer of the Indenture Trustee discovers
that a representation or warranty with respect to a Receivable was incorrect as
of the time specified with respect to such representation and warranty or that a
covenant of the Servicer has been breached, and such incorrectness or breach
materially and adversely affects the interests of the Issuer, the Indenture
Trustee shall give prompt written notice to the Servicer and the Owner Trustee
of such incorrectness.

         SECTION 6.02 RIGHTS OF INDENTURE TRUSTEE.

         (a) Except as otherwise provided in Section 6.01:

                  (i) the Indenture Trustee may rely and shall be protected in
         acting or refraining from acting upon any resolution, Officer's
         Certificate, certificate of an authorized signatory, certificate of
         auditors or any other certificate, statement, instrument, opinion,
         report, notice, request, consent, order, appraisal, bond or other paper
         or document believed by it to be genuine and to have been signed or
         presented by the proper party or parties;

                  (ii) the Indenture Trustee may consult with counsel and any
         Opinion of Counsel shall be full and complete authorization and
         protection in respect of any action taken or suffered or omitted by it
         under this Indenture in good faith and in accordance with such Opinion
         of Counsel;

                  (iii) the Indenture Trustee shall be under no obligation to
         exercise any of the rights or powers vested in it by this Indenture or
         the Sale and Servicing Agreement, or to institute, conduct or defend
         any litigation under this Indenture, or in relation to this Indenture
         or the Sale and Servicing Agreement, at the request, order or direction
         of any of the Noteholders pursuant to the provisions of this Indenture
         or the Sale and Servicing

                                       41
<PAGE>

         Agreement, unless such Noteholders shall have offered to the Indenture
         Trustee reasonable security or indemnity against the costs, expenses
         and liabilities that may be incurred therein or thereby;

                  (iv) the Indenture Trustee shall not be personally liable for
         any action taken, suffered or omitted by it in good faith and
         reasonably believed by it to be authorized or within the discretion or
         rights or powers conferred upon it by this Indenture;

                  (v) the Indenture Trustee shall not be bound to recalculate,
         reverify, or make any investigation into the facts of 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 Holders of Notes
         evidencing not less than 25% of the aggregate Outstanding Amount of the
         Class A Notes (acting together as a single class but excluding for such
         purposes the outstanding principal amount of any Notes held of record
         or beneficially owned by TMCC, TMCRC or any of their Affiliates);
         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,
         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 shall be paid by the
         Administrator or, if paid by the Indenture Trustee, shall be reimbursed
         by the Administrator upon demand; and nothing in this clause shall
         derogate from the obligation of the Servicer to observe any applicable
         law prohibiting disclosure of information regarding the Obligors; and

                  (vi) the Indenture Trustee may execute any of the trusts or
         powers under this Indenture or perform any duties under this Indenture
         either directly or by or through agents or attorneys or a custodian.

         (b) No Noteholder will have any right to institute any proceeding with
respect to this Indenture except upon satisfying the conditions set forth in
Section 5.06.

         SECTION 6.03 INDIVIDUAL RIGHTS OF INDENTURE TRUSTEE. The Indenture
Trustee in its individual or any other capacity may become the Holder,
beneficial 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 Paying Agent, Note Registrar, co-registrar or co-paying agent may
do the same with like rights. However, in so doing the Indenture Trustee must
comply with Sections 6.11 and 6.12.

         SECTION 6.04 INDENTURE TRUSTEE'S DISCLAIMER. The Indenture Trustee
makes no representations as to the validity or sufficiency of this Indenture or
of the Notes or the Interest Rate Swap Agreement (other than the execution by
the Indenture Trustee on behalf of the Trust of, and the certificate of
authentication on, the Notes), or of the Certificate. The Indenture Trustee
shall have no obligation to perform any of the duties of the Servicer or the
Administrator unless explicitly set forth in this Indenture. The Indenture
Trustee shall at no time have any responsibility or liability for or with
respect to the legality, validity and enforceability of the

                                       42
<PAGE>

Notes, the Interest Rate Swap Agreement or any Receivable, any ownership
interest in any Financed Vehicle, or the maintenance of any such ownership
interest, or for or with respect to the efficacy of the Trust or its ability to
generate the payments to be distributed to Noteholders under this Indenture or
to the Swap Counterparty under the Interest Rate Swap Agreement, including
without limitation the validity of the assignment of the Receivables to the
Trust or of any intervening assignment; the existence, condition, location and
ownership of any Receivable or Financed Vehicle; the existence and
enforceability of any physical damage or credit life or credit disability
insurance; the existence and contents of any retail installment sales contract
or any computer or other record thereof; the completeness of any retail
installment sales contract; the performance or enforcement of any retail
installment sales contract; the compliance by the Issuer with any covenant or
the breach by the Issuer, Seller or Servicer of any warranty or representation
made under this Indenture or in any Basic Document or other related document and
the accuracy of any such warranty or representation prior to the Indenture
Trustee's receipt of notice or other discovery of any noncompliance therewith or
any breach thereof; the acts or omissions of the Issuer, Seller or the Servicer;
or any action by the Indenture Trustee taken at the instruction of the Servicer;
PROVIDED, HOWEVER, that the foregoing shall not relieve the Indenture Trustee of
its obligation to perform its duties under this Indenture. Except with respect
to a claim based on the failure of the Indenture Trustee to perform its duties
under this Indenture or based on the Indenture Trustee's willful misconduct, bad
faith or negligence, no recourse shall be had for any claim based on any
provision of this Indenture, the Interest Rate Swap Agreement, the Notes or the
Certificate or assignment thereof against the institution serving as the
Indenture Trustee in its individual capacity. The Indenture Trustee shall not
have any personal obligation, liability or duty whatsoever to any Noteholder,
the Swap Counterparty or any other Person with respect to any such claim, and
any such claim shall be asserted solely against the Issuer or any indemnitor who
shall furnish indemnity as provided in this Indenture. The Indenture Trustee
shall not be accountable for the use or application by the Issuer of any of the
Notes or of the proceeds of such Notes, or for the use or application of any
funds paid to the Servicer in respect of the Notes.

         SECTION 6.05 NOTICE OF DEFAULTS. If a Trust Officer of the Indenture
Trustee knows that a Default has occurred and is continuing, the Indenture
Trustee shall mail to each Noteholder and the Swap Counterparty notice of such
Default within 10 days of the occurrence thereof. Except in the case of a
Default in payment of principal of or interest on any Note, the Indenture
Trustee may withhold such notice if and so long as a committee of its Trust
Officers in good faith determines that withholding the notice is in the
interests of Noteholders.

         SECTION 6.06 REPORTS BY INDENTURE TRUSTEE TO HOLDERS. The Indenture
Trustee shall deliver or cause to be delivered annually to each Noteholder of
record such information as may be required to enable such holder to prepare its
federal and state income tax returns. The Indenture Trustee shall also deliver
or cause to be delivered annually to each Noteholder of record a report relating
to its eligibility and qualification to continue as Indenture Trustee under this
Indenture, any amounts advanced by it under this Indenture, the amount, interest
rate and maturity date of certain indebtedness owed by the Issuer to such
Indenture Trustee, in its individual capacity, the property and funds physically
held by such Indenture Trustee in its capacity as such, and any action taken by
it that materially affects the Notes and that has not been previously reported.

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<PAGE>

         SECTION 6.07 COMPENSATION AND INDEMNITY. The Issuer shall pay or shall
cause the Servicer to pay to the Indenture Trustee from time to time reasonable
compensation for its services. The Indenture Trustee's compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Issuer
shall cause the Servicer to reimburse the Indenture Trustee for all reasonable
out-of-pocket expenses incurred or made by it, including costs of collection, in
addition to the compensation for its services. Such expenses shall include the
reasonable compensation and expenses, disbursements and advances of the
Indenture Trustee's agents, counsel, accountants and experts. The Administrator
shall indemnify or shall cause the Servicer to indemnify the Indenture Trustee
against any and all loss, liability or expense (including reasonable attorneys'
fees) incurred by it in connection with the administration of this trust and the
performance of its duties hereunder. The Indenture Trustee shall notify the
Administrator and the Servicer promptly of any claim for which it may seek
indemnity. Failure by the Indenture Trustee to so notify the Administrator and
the Servicer shall not relieve the Administrator or the Servicer of its
obligations hereunder. In case any such action is brought against the Indenture
Trustee under this Section 6.07 and it notifies the Administrator of the
commencement thereof, the Administrator will assume the defense thereof, with
counsel reasonably satisfactory to the Indenture Trustee (who may, unless there
is, as evidenced by an opinion of counsel to the Indenture Trustee stating that
there is an unwaivable conflict of interest, be counsel to the Administrator),
and neither the Administrator nor the Servicer will be liable to the Indenture
Trustee under this Section for any legal or other expenses subsequently incurred
by the Indenture Trustee in connection with the defense thereof, other than
reasonable costs of investigation. Neither the Administrator nor the Servicer
need reimburse any expense or indemnify against any loss, liability or expense
incurred by the Indenture Trustee through the Indenture Trustee's own willful
misconduct, negligence or bad faith.

         The Administrator's payment obligations to the Indenture Trustee
pursuant to this Section shall survive the discharge of this Indenture. When the
Indenture Trustee incurs expenses after the occurrence of a Default specified in
Section 5.01(e) or (f) or the Seller incurs expenses after the occurrence of an
Insolvency Event with respect to the Seller, 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.

         SECTION 6.08 REPLACEMENT OF INDENTURE TRUSTEE. The Indenture Trustee
may resign at any time by providing written notice of its resignation to the
Issuer. The Administrator, on behalf of the Issuer, may remove the Indenture
Trustee if:

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

         (b)      the Indenture Trustee is adjudged a bankrupt or insolvent;

         (c)      a receiver or other public officer takes charge of the
                  Indenture Trustee or its property; or

         (d)      the Indenture Trustee otherwise becomes legally or practically
                  incapable of fulfilling its duties hereunder.

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<PAGE>

         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
Administrator, on behalf of the Issuer, shall promptly appoint a successor
Indenture Trustee. No resignation or removal of the Indenture Trustee and no
appointment of a successor Indenture Trustee shall become effective until the
acceptance of appointment by the successor Indenture Trustee pursuant to this
Section 6.08.

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

         If a successor Indenture Trustee does not take office within 30 days
after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee, the Administrator 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 may at any time thereafter petition any court of competent
jurisdiction for the removal of the Indenture Trustee and the appointment of a
successor Indenture Trustee.

         Notwithstanding the replacement of the Indenture Trustee pursuant to
this Section, the Issuer's and the Administrator's obligations under Section
6.07 shall continue for the benefit of the retiring Indenture Trustee.

         SECTION 6.09 SUCCESSOR INDENTURE TRUSTEE BY MERGER. If the Indenture
Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets to, another Person, the
resulting, surviving or transferee corporation without any further act shall be
the successor Indenture Trustee if such surviving Person or transferee
corporation or bank shall be otherwise qualified and eligible under Section
6.11. The Indenture Trustee shall provide the Issuer, the Servicer and the
Rating Agencies reasonable 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 shall succeed to the trusts created by
this Indenture any of the Notes shall have been authenticated but not delivered,
any such successor to the Indenture Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Notes so
authenticated; and in case at that time any of the Notes shall not have been
authenticated, any successor to the Indenture Trustee may authenticate such
Notes either in the name of any predecessor hereunder or in the name of the
successor to the Indenture Trustee; and in all such cases such certificates
shall have the full force which it is anywhere in the Notes or in this Indenture
provided that the certificate of the Indenture Trustee shall have.

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<PAGE>

         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 shall have the power and may execute and deliver all instruments to
appoint one or more Persons to act as a co-trustee or co-trustees, or separate
trustee or separate trustees, of all or any part of the Trust, and to vest in
such Person or Persons, in such capacity and for the benefit of the Noteholders,
such title to the 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 shall 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 shall be required under
Section 6.08 hereof.

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

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

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

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

         (c) Any notice, request or other writing given to the Indenture Trustee
shall be deemed to have been given to each of the then separate trustees and
co-trustees as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Agreement and
the conditions of this Article VI. Each separate trustee and co-trustee, upon
its acceptance of the trusts thereupon conferred, shall 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, 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 shall be filed with
the Indenture Trustee.

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<PAGE>

         (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 shall die, become incapable of acting, resign or be removed, all of
its estates, properties, rights, remedies and trusts shall vest in and be
exercised by the Indenture Trustee, to the extent permitted by law, without the
appointment of a new or successor trustee.

         SECTION 6.11 ELIGIBILITY; DISQUALIFICATION. The Indenture Trustee shall
at all times satisfy the requirements of TIA Section 310(a). The Indenture
Trustee shall have a combined capital and surplus of at least $50,000,000 as set
forth in its most recent published annual report of condition and it or its
parent shall have a long-term debt rating of Baa3 or better by Moody's or shall
otherwise be acceptable to Moody's. The Indenture Trustee shall comply with TIA
Section 310(b), including the optional provision permitted by the second
sentence of TIA Section 310(b)(9); provided, however, that there shall be
excluded from the operation of TIA Section 310(b)(1) any indenture or indentures
under which other securities of the Issuer are outstanding if the requirements
for such exclusion set forth in TIA Section 310(b)(1) are met.

         SECTION 6.12 PREFERENTIAL COLLECTION OF CLAIMS AGAINST ISSUER. The
Indenture Trustee shall comply with TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). An Indenture Trustee who has resigned
or been removed shall be subject to TIA Section 311(a) to the extent indicated.

         SECTION 6.13 PENNSYLVANIA MOTOR VEHICLE SALES FINANCE COMPANY LICENSES.
The Indenture Trustee shall use its best efforts to maintain the effectiveness
of all licenses required under the Pennsylvania Motor Vehicle Sales Finance Act
in connection with this Indenture and the transactions contemplated hereby until
the lien and security interest of this Indenture shall no longer be in effect in
accordance with the terms hereof.

         SECTION 6.14 INTEREST RATE SWAP PROVISIONS. The Issuer has entered into
the Interest Rate Swap Agreement, in a form satisfactory to the Rating Agencies,
to hedge the floating rate interest expense on the Class A-3 Notes and the Class
A-4 Notes. The Issuer may, from time to time, enter into one or more replacement
Interest Rate Swap Agreements in the event that any Interest Rate Swap Agreement
is terminated prior to its scheduled expiration pursuant to a Swap Event of
Default or a Swap Termination Event. All Swap Payments Outgoing and Swap
Termination Payments owed by the Issuer to the Swap Counterparty will rank
senior to interest payments on the Class A Notes.

                  (a) Except as provided in Section 5.04(e) of the Sale and
         Servicing Agreement, the Indenture Trustee will be responsible for
         remitting all Swap Payments Outgoing and any Swap Termination Payments
         payable to the Swap Counterparty and for collecting Swap Payments
         Incoming and any Swap Termination Payments payable by the Swap
         Counterparty.

                  (b) Upon the occurrence of (i) any Swap Event of Default
         arising from any action taken, or failure to act, by the Swap
         Counterparty, or (ii) any Swap Termination Event (except as described
         in the following sentence) with respect to which the Swap

                                       47
<PAGE>

         Counterparty is an Affected Party (as defined in the Interest Rate Swap
         Agreement), the Indenture Trustee may and will, at the direction of the
         Holders of at least 51% of the Outstanding Amount of the Class A-2
         Notes, the Class A-3 Notes and the Class A-4 Notes, acting together as
         a single Class (excluding for such purposes the outstanding principal
         amount of any Notes held of record or beneficially owned by TMCC, TMCRC
         or any of their Affiliates), designate an Early Termination Date (as
         defined in the Interest Rate Swap Agreement) with respect to the Swap
         Agreement. If a Swap Termination Event occurs (i) as a result of the
         insolvency or bankruptcy of the Issuer or the Swap Counterparty or (ii)
         because the Issuer or the Swap Counterparty becomes subject to
         registration as an "investment company" under the Investment Company
         Act of 1940, the Indenture Trustee will designate an Early Termination
         Date.

                  (c) At least five days before the effective date of any
         proposed amendment or supplement to the Interest Rate Swap Agreement,
         the Administrator shall provide the Rating Agencies with a copy of such
         amendment or supplement. Unless the amendment or supplement clarifies
         any term or provisions, corrects any inconsistency, cures any
         ambiguity, or corrects any typographical error in the Interest Rate
         Swap Agreement, an amendment or supplement to the Interest Rate Swap
         Agreement will be effective only after satisfaction of the Rating
         Agency Condition.

                  (d) The Administrator shall notify the Swap Counterparty of
         any proposed amendment or supplement to any of the Basic Documents. If
         such proposed amendment or supplement would adversely affect any of the
         Swap Counterparty's rights or obligation under the Interest Rate Swap
         Agreement or modify the obligations of, or impair the ability of the
         Issuer to fully perform any of its obligations under the Interest Rate
         Swap Agreement, the Administrator shall obtain the consent of the Swap
         Counterparty prior to the adoption of such amendment of supplement,
         provided, the Swap Counterparty's consent to any such amendment or
         supplement shall not be unreasonably withheld, and provided further,
         the Swap Counterparty's consent will be deemed to have been given if
         the Swap Counterparty does not object to writing within ten Business
         Days of receipt of a written request for such consent.

                                  ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

         SECTION 7.01 NOTE REGISTRAR TO FURNISH NAMES AND ADDRESSES OF
NOTEHOLDERS. The Note Registrar shall furnish or cause to be furnished to the
Indenture Trustee, Owner Trustee, Servicer or Administrator, within 15 days
after receipt by the Note Registrar of a written request therefrom, a list of
the names and addresses of the Noteholders of any Class as of the most recent
Record Date. If three or more Holders of Notes of any Class, or one or more
Holders of such Notes evidencing not less than 25% of the Outstanding Amount of
such Notes (hereinafter referred to as "Applicants"), apply in writing to the
Indenture Trustee, and such application states that the Applicants desire to
communicate with other Noteholders with respect to their rights under this
Indenture or under the Notes and such application is accompanied by a copy of
the communication that such Applicants propose to transmit, then the Indenture
Trustee shall, within

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<PAGE>

five Business Days after the receipt of such application, afford such Applicants
access, during normal business hours, to the current list of Noteholders. The
Indenture Trustee may elect not to afford the requesting Noteholders access to
the list of Noteholders if it agrees to mail the desired communication by proxy,
on behalf of and at the expense of the requesting Noteholders, to all
Noteholders. Every Noteholder, by receiving and holding a Note, agrees with the
Indenture Trustee and the Issuer that none of the Indenture Trustee, the Owner
Trustee, the Issuer, the Servicer or the Administrator shall be held accountable
by reason of the disclosure of any such information as to the names and
addresses of the Noteholders under this Indenture, regardless of the source from
which such information was derived.

         If the Indenture Trustee shall cease to be the Note Registrar, then
thereafter the Administrator will furnish or cause to be furnished to the
Indenture Trustee not more than five days after the most recent Record Date or
at such other times as the Indenture Trustee reasonably may request in writing,
a list, in such form as the Indenture Trustee reasonably may require, of the
names and addresses of the Holders of Notes as of such Record Date.

         SECTION 7.02 PRESERVATION OF INFORMATION; COMMUNICATIONS TO
NOTEHOLDERS.

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

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

         (c) The Issuer, the Indenture Trustee and the Note Registrar shall have
the protection of TIA Section 3.12(c).

         SECTION 7.03 REPORTS BY ISSUER.

         (a) The Issuer shall:

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

                                       49
<PAGE>

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

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

         SECTION 7.04 REPORTS BY INDENTURE TRUSTEE. If required by TIA Section
313(a), within 60 days after each March 31 beginning with 2001, the Indenture
Trustee shall 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 shall comply with TIA Section 313(b).

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

                                  ARTICLE VIII

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

         SECTION 8.01 COLLECTION OF MONEY. Except as otherwise expressly
provided herein, the Indenture Trustee may demand payment or delivery of, and
shall receive and collect, directly and without intervention or assistance of
any fiscal agent or other intermediary, all money and other property payable to
or receivable by the Indenture Trustee pursuant to this Indenture. The Indenture
Trustee shall apply all such money received by it as provided in this Indenture.
Except as otherwise expressly provided in this Indenture, if any default occurs
in the making of any payment or performance under any agreement or instrument
that is part of the 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 shall be
without prejudice to any right to claim a Default or Event of Default under this
Indenture and any right to proceed thereafter as provided in Article V.

         SECTION 8.02 TRUST ACCOUNTS.

         (a) On or prior to the Closing Date, the Issuer shall cause the
Servicer to establish and maintain, in the name of the Indenture Trustee, for
the benefit of the Noteholders and, to the extent set forth herein, the
Certificateholder and the Swap Counterparty, the Collection Account and Payahead
Account as provided in Section 5.01 of the Sale and Servicing Agreement.

         (b) On or prior to the Closing Date, the Seller shall, pursuant to the
Securities Account Control Agreement, establish and maintain with the Indenture
Trustee, for the benefit of the Noteholders, the Reserve Account as provided in
Section 5.07 of the Sale and Servicing

                                       50
<PAGE>

Agreement. Upon the execution and delivery by the parties hereto of this
Indenture, the Indenture Trustee will deliver to the Securities Intermediary the
Prohibition Notice provided for in the Securities Account Control Agreement. In
connection with the termination of this Indenture, the Indenture Trustee will
deliver to the Securities Intermediary the Rescission of Prohibition Notice
provided for in the Securities Account Control Agreement.

         SECTION 8.03 [RESERVED].

         SECTION 8.04 GENERAL PROVISIONS REGARDING ACCOUNTS.

         (a) So long as no Default or Event of Default shall have occurred and
be continuing, all or a portion of the funds in the Collection Account and
Payahead Account shall be invested in Eligible Investments and reinvested by the
Indenture Trustee at the written direction of the Servicer, subject to the
provisions of Section 5.01 of the Sale and Servicing Agreement. All income or
other gain from investments of moneys deposited in the Collection Account and
Payahead Account shall be deposited by the Indenture Trustee in the Collection
Account and paid to the Servicer as servicing compensation on each Payment Date,
and any loss resulting from such investments in excess of such income or gain
(against which such losses will first be applied) shall be charged to such
account. The Servicer will not direct the Indenture Trustee to make any
investment of any funds or to sell any investment held in the Collection Account
or Payahead Account unless the security interest granted and perfected in such
account will continue to be perfected in such investment or the proceeds of such
sale, in either case without any further action by any Person, and, in
connection with any direction to the Indenture Trustee to make any such
investment or sale, if requested by the Indenture Trustee, the Servicer shall
deliver to the Indenture Trustee an Opinion of Counsel, acceptable to the
Indenture Trustee, to such effect.

         (b) So long as no Default or Event of Default shall have occurred and
be continuing, all or a portion of the funds in the Reserve Account shall be
invested in Eligible Investments and reinvested by the Indenture Trustee (by
delivery to the Securities Intermediary of appropriate Entitlement Orders) at
the written direction of the Seller, subject to the provisions of Section 5.07
of the Sale and Servicing Agreement and the provisions of the Securities Account
Control Agreement. All income or other gain from investments of moneys deposited
in the Reserve Account shall be paid by the Indenture Trustee to the Seller on
each Payment Date (by delivery to the Securities Intermediary of appropriate
Entitlement Orders). Subject to the right of the Indenture Trustee to make
withdrawals therefrom, as directed by the Servicer, for the purposes and in the
amounts set forth in Section 5.06 of the Sale and Servicing Agreement, the
Reserve Account and all funds held therein shall be the property of the Seller
and not the property of the Trust, the Owner Trustee or the Indenture Trustee.
The Seller will grant to the Indenture Trustee, for the benefit of the
Noteholders, a security interest in all funds (including Eligible Investments,
but not the income from such investments) in the Reserve Account (including the
Reserve Account Initial Deposit) and the proceeds thereof, and the Indenture
Trustee shall have all of the rights of a secured party under the UCC with
respect thereto; provided that all income from the investment of funds in the
Reserve Account and the right to receive such income are retained by the Seller
and are not transferred, assigned or otherwise conveyed hereunder. The Seller
will not direct the Indenture Trustee to make any investment of any funds or to
sell any investment held in the Reserve Account unless the security interest
granted and perfected in such

                                       51
<PAGE>

account will continue to be perfected in such investment or the proceeds of such
sale, in either case without any further action by any Person, and, in
connection with any direction to the Indenture Trustee to make any such
investment or sale, if requested by the Indenture Trustee, the Seller shall
deliver to the Indenture Trustee an Opinion of Counsel, acceptable to the
Indenture Trustee, to such effect.

         (c) Subject to Section 6.01(c), the Indenture Trustee shall not in any
way be held liable by reason of any insufficiency in the Collection Account,
Payahead Account or Reserve Account resulting from any loss on any Eligible
Investment included therein at the direction of the Servicer or Seller, as the
case may be, except for losses attributable to the Indenture Trustee's 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 the terms thereof.

         (d) If (i) the Servicer or Seller shall have failed to give investment
directions for any funds on deposit in the Collection Account, Payahead Account
and Reserve Account, as the case may be, to the Indenture Trustee by 11:00 a.m.
Eastern 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 shall have
occurred and be continuing with respect to the Notes but the Notes shall not
have been declared due and payable pursuant to Section 5.02 or (iii) if such
Notes shall have been declared due and payable following an Event of Default,
but amounts collected or receivable from the Trust Estate are being applied in
accordance with Section 5.05 as if there had not been such a declaration, then
the Indenture Trustee shall, to the fullest extent practicable, invest and
reinvest funds in the Trust Accounts in one or more Eligible Investments
specified in clause (h) of the definition of Eligible Investments provided in
the Sale and Servicing Agreement.

         SECTION 8.05 RELEASE OF TRUST ESTATE.

         (a) Subject to the payment of its fees and expenses pursuant to Section
6.07, the Indenture Trustee may, and when required by the provisions of this
Indenture shall, execute instruments to release property from the lien of this
Indenture, or convey the Indenture Trustee's interest in such property, 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 shall be bound to ascertain the
Indenture Trustee's authority, inquire into the satisfaction of any conditions
precedent or see to the application of any moneys.

         (b) The Indenture Trustee shall, at such time as there are no Notes
outstanding, all sums due to the Swap Counterparty have been paid, and all sums
due the Indenture Trustee pursuant to Section 6.07 have been paid, release any
remaining portion of the Trust Estate that secured the Notes from the lien of
this Indenture and release to or to the order of the Issuer or, in the case of
the Reserve Account, to the Seller, entitled thereto any funds then on deposit
in the Collection Account, Payahead Account and Reserve Account, as the case may
be. The Indenture Trustee shall release property from the lien of this Indenture
pursuant to this Section 8.05(b) only upon receipt of an Issuer Request
accompanied by an Officer's Certificate, an Opinion of Counsel and (if required
by the TIA) Independent Certificates in accordance with TIA Sections 314(c) and
314(d)(1) meeting the applicable requirements of Section 11.01.

                                       52
<PAGE>

         SECTION 8.06 OPINION OF COUNSEL. The Indenture Trustee shall receive at
least seven days notice when requested by the Issuer to take any action pursuant
to Section 8.05(a), accompanied by copies of any instruments involved, and the
Indenture Trustee shall also require, as a condition to such action, an Opinion
of Counsel, in form and substance satisfactory to the Indenture Trustee, stating
the legal effect of any such action, outlining the steps required to complete
the same, and concluding that all conditions precedent to the taking of such
action have been complied with and such action will not materially and adversely
impair the security for the Notes or the rights of the Noteholders in
contravention of the provisions of this Indenture; provided, however, that such
Opinion of Counsel shall not be required to express an opinion as to the fair
value of the 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 9.01 SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF NOTEHOLDERS.
Subject to Section 9.03, without the consent of the Holders of any Notes but
with prior notice to the Rating Agencies, 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 shall 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:

         (a) 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;

         (b) 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;

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

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

         (e) to cure any ambiguity, to correct or supplement any provision
herein or in any supplemental indenture that 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 to the extent such action shall not adversely
affect the interests of the Holders of the Notes or the Certificate or the Swap
Counterparty;

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<PAGE>

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

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

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

         SECTION 9.02 SUPPLEMENTAL INDENTURES WITH CONSENT OF NOTEHOLDERS.
Subject to Sections 6.14 and 9.03, the Issuer and the Indenture Trustee, when
authorized by an Issuer Order, also may, with prior notice to the Rating
Agencies and with the consent of the Holders of at least 51% of the Outstanding
Amount of the Class A Notes, acting together as a single Class (excluding for
such purposes the outstanding principal amount of any Notes held of record or
beneficially owned by TMCC, TMCRC or any of their Affiliates), by Action 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.

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

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

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

         SECTION 9.03 LIMITATIONS ON SUPPLEMENTAL INDENTURES The Issuer and the
Indenture Trustee, in accordance with Sections 9.01 and 9.02 above, may 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 no such

                                       54
<PAGE>

supplemental indenture shall, without the consent of the Holder of each
Outstanding Note Swap Counterparty affected thereby:

         (a) change the date of payment of any installment of principal of or
interest on any Note, or reduce the principal amount thereof, the Interest Rate
thereon, change the provisions 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, or
impair the right to institute suit for the enforcement of the provisions of this
Indenture, to the extent provided in Article V, requiring the application of
funds available therefor to the payment of any such amount due on the Notes on
or after the respective due dates thereof;

         (b) reduce the percentage of the Outstanding Amount of the Notes (or
the Notes of any Class, as applicable), 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;

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

         (d) reduce the percentage of the Outstanding Amount of the Notes (or
the Notes of any Class, as applicable) required to direct the Indenture Trustee
to direct the Issuer to sell or liquidate the Trust Estate pursuant to Section
5.04;

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

         (f) 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 Payment Date (including the calculation of any of the
individual components of such calculation);

         (g) 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 herein, 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; or

         (h) modify or alter the provisions hereof regarding the voting of Notes
held by the Indenture Trustee, the Owner Trustee, TMCC or any of its Affiliates
or the Trust.

         SECTION 9.04 EXECUTION OF SUPPLEMENTAL INDENTURES. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the modification thereby of the trusts created
by this Indenture, the Indenture Trustee shall be entitled to receive, and
subject to Sections 6.01 and 6.02, shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or

                                       55
<PAGE>

permitted by this Indenture. The Indenture Trustee may, but shall 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 9.05 EFFECT OF SUPPLEMENTAL INDENTURE. Upon the execution of
any supplemental indenture pursuant to the provisions hereof, this Indenture
shall be and shall 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, the Holders of the Notes
and the Certificateholder shall thereafter be determined, exercised and enforced
hereunder subject in all respects to such modifications and amendments, and all
the terms and conditions of any such supplemental indenture shall be and be
deemed to be part of the terms and conditions of this Indenture for any and all
purposes.

         SECTION 9.06 CONFORMITY WITH TRUST INDENTURE ACT. Every amendment of
this Indenture and every supplemental indenture executed pursuant to this
Article IX shall conform to the requirements of the Trust Indenture Act as then
in effect so long as this Indenture shall then be qualified under the Trust
Indenture Act.

         SECTION 9.07 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 shall,
bear a notation in form approved by the Indenture Trustee as to any matter
provided for in such supplemental indenture. If the Issuer or the Indenture
Trustee shall so determine, new Notes so modified as to conform, in the opinion
of the Indenture Trustee and the Issuer, to any such supplemental indenture may
be prepared and executed by the Issuer and authenticated and delivered by the
Indenture Trustee in exchange for Outstanding Notes.

                                   ARTICLE X

                            TERMINATION OF THE TRUST

         SECTION 10.01 TERMINATION OF THE TRUSTS CREATED BY INDENTURE.

         (a) The trusts created hereby and the respective obligations and
responsibilities of the Issuer, the Administrator and the Indenture Trustee
shall terminate upon (i) the purchase as of any Payment Date by the Servicer, or
any successor to the Servicer, at its option of the Receivables primarily
comprising the corpus of the Owner Trust Estate as described in Section 10.02,
(ii) the payment to the Noteholders of all amounts required to be paid to them
pursuant to this Agreement and the release to the Owner Trustee of all remaining
amounts or investments on deposit in the Collection Account or Payahead Account,
the payment to the Swap Counterparty all amounts required to be paid to them
pursuant to the Interest Rate Swap Agreement, and the release to the Seller of
the amounts held in the Reserve Account or (iii) the maturity or liquidation of
the last Receivable and the disposition of all property held as part of the
Owner Trust Estate; provided, however, that in no event shall the trust created
by this Indenture continue beyond the expiration of 21 years from the death of
the last survivor of the descendants

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<PAGE>

of Joseph P. Kennedy, the late ambassador of the United States to the Court of
St. James, living on the date of this Indenture. The Owner Trustee shall
promptly notify the Indenture Trustee and each Rating Agency of any prospective
termination pursuant to this Section.

         (b) Notice of any termination, specifying the Payment Date upon which
the Noteholders must surrender their Notes to the Indenture Trustee for payment
of the final distribution and retirement of the Notes, shall be given promptly
by the Indenture Trustee (at the written direction of the Administrator) by
letter to Noteholders mailed not later than the 15th day and not earlier than
the 30th day prior to the date on which such final distribution is expected to
occur specifying (i) the Payment Date upon which final payment of the Notes
shall be made upon presentation and surrender of Notes at the office of the
Indenture Trustee therein specified, (ii) the amount of any such final payment
and (iii) if applicable, that the Record Date otherwise applicable to such
Payment Date is not applicable, payments being made only upon presentation and
surrender of the Notes at the office of the Indenture Trustee therein specified.
The Indenture Trustee shall give such notice to the Note Registrar (if other
than the Indenture Trustee) at the time such notice is given to Noteholders. In
the event such notice is given, the Seller, the Servicer, or any successor to
the Servicer, or the Indenture Trustee, as the case may be, shall make deposits
into the Collection Account in accordance with Section 5.02 of the Sale and
Servicing Agreement, or, in the case of an optional purchase of Receivables
pursuant to Section 10.02, shall deposit the amount specified in Section 10.02.
Upon presentation and surrender of the Notes, the Indenture Trustee shall cause
to be distributed to Noteholders amounts distributable on such Payment Date
pursuant to Section 5.06 of the Sale and Servicing Agreement.

         SECTION 10.02 OPTIONAL PURCHASE OF ALL RECEIVABLES. If the Servicer, or
any successor to the Servicer, shall notify the Swap Counterparty, the Owner
Trustee and the Indenture Trustee of its intention to exercise the option
granted to it in the Sale and Servicing Agreement to repurchase the outstanding
Receivables primarily comprising the Owner Trust Estate, then the Owner Trustee
and Indenture Trustee shall give written notice thereof to each Securityholder
and the Rating Agencies as soon as practicable after their receipt of notice
from the Servicer. Upon deposit by the Servicer or successor to the Servicer of
the amount necessary to effect such purchase of the corpus of the Owner Trust
Estate, the Indenture Trustee shall make the final distributions to the
Noteholders and Certificateholders as set forth in Section 5.06 of the Sale and
Servicing Agreement and Section 10.01 hereof and shall promptly transfer all of
its right, title and interest in and to any amounts or investments remaining on
deposit in the Collection Account and all of its rights to make withdrawals from
the Payahead Account and the Reserve Account (excluding any portion thereof
necessary to make distributions to Noteholders described in Section 3.03) to the
Owner Trustee for the benefit of the Certificateholder and release from the lien
of this Indenture all of the remaining Collateral. The Indenture Trustee shall
execute, deliver and file all agreements, certificates, instruments or other
documents necessary or reasonably requested by the Owner Trustee in order to
effect such release and the transfer to the Owner Trustee of the Collateral.

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<PAGE>

                                   ARTICLE XI

                                  MISCELLANEOUS

         SECTION 11.01 COMPLIANCE CERTIFICATES AND OPINIONS, ETC.

         (a) Upon any application or request by the Issuer to the Indenture
Trustee to take any action under any provision of this Indenture, the Issuer
shall, upon written request therefor from the Indenture Trustee, furnish to the
Indenture Trustee (i) an Officer's Certificate stating that all conditions
precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with, (ii) an Opinion of Counsel stating that in the
opinion of such counsel all such conditions precedent, if any, have been
complied with and (iii) (if required by the TIA) an Independent Certificate from
a firm of certified public accountants meeting the applicable requirements of
this Section, 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 such written request from the Indenture Trustee need be
furnished (and only such expressly required documents need be delivered in
connection therewith).

         Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall 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, the
Issuer shall, in addition to any obligation imposed in Section 11.01(a) or
elsewhere in this Indenture, furnish to the Indenture Trustee 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 an Officer's Certificate certifying or stating the
         opinion of any signatory thereof as to the

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<PAGE>

         matters described in clause (i) above, the Issuer shall also deliver to
         the Indenture Trustee 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 one percent of the
         Outstanding Amount of the Notes.

                  (iii) Whenever any property or securities are to be released
         from the lien of this Indenture, the Issuer shall also furnish to the
         Indenture Trustee 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.

         SECTION 11.02 FORM OF DOCUMENTS DELIVERED TO INDENTURE TRUSTEE. In any
case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may certify
or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion
as to such matters in one or several documents.

         Any certificate or opinion of an Authorized Officer of the Issuer may
be based, insofar as it relates to legal matters, upon a certificate or opinion
of, or representations by, counsel, unless such officer knows, or in the
exercise of reasonable care should know, that the certificate or opinion or
representations with respect to the matters upon which such officer's
certificate or opinion is based are erroneous. Any such certificate of an
Authorized Officer or Opinion of Counsel may be based, insofar as it relates to
factual matters, upon a certificate or opinion of, or representations by, an
officer or officers of the Servicer, the Seller, the Issuer or the
Administrator, stating that the information with respect to such factual matters
is in the possession of the Servicer, the Seller, the Issuer or the
Administrator, 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
shall deliver any document as a condition of the granting of such application,
or as evidence of the Issuer's compliance with any term hereof, it is intended
that the truth and accuracy, at the time of the granting of such application or
at the effective date of such certificate or report (as the case may be), of the
facts and opinions stated in such document shall in such case be conditions
precedent to the right of the Issuer to have such

                                       59
<PAGE>

application granted or to the sufficiency of such certificate or report. The
foregoing shall not, however, be construed to affect the Indenture Trustee's
right to rely upon the truth and accuracy of any statement or opinion contained
in any such document as provided in Article VI. `

         SECTION 11.03 ACTS OF NOTEHOLDERS.

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

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

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

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

         SECTION 11.04 NOTICES, ETC., TO INDENTURE TRUSTEE, ISSUER AND RATING
AGENCIES. Any request, demand, authorization, direction, notice, consent, waiver
or Action of Noteholders or other documents provided or permitted by this
Indenture shall be in writing and if such request, demand, authorization,
direction, notice, consent, waiver or Action of Noteholders is to be made upon,
given or furnished to or filed with:

         (a) the Indenture Trustee by any Noteholder or by the Issuer shall be
sufficient for every purpose hereunder if made, given, furnished or filed in
writing to or with the Indenture Trustee at its Corporate Trust Office, or

         (b) the Issuer by the Indenture Trustee or by any Noteholder shall be
sufficient for every purpose hereunder if in writing and mailed first-class,
postage prepaid to the Issuer addressed to: Toyota Auto Receivables 2001-A Owner
Trust, 19001 South Western Avenue, Torrance, California 90509, Attention:
Treasury Department, Vice President, Treasury, or at any other address
previously furnished in writing to the Indenture Trustee by the Issuer or the
Administrator. The Issuer shall promptly transmit any notice received by it from
the Noteholders to the Indenture Trustee.

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<PAGE>

         Notices required to be given to the Rating Agencies by the Issuer, the
Indenture Trustee or the Owner Trustee shall be in writing, personally delivered
or mailed by certified mail, return receipt requested, to (i) in the case of
Moody's, at the following address: Moody's Investors Service, Inc., ABS
Monitoring Department, 99 Church Street, New York, New York 10007, (ii) in the
case of Standard & Poor's, at the following address: Standard & Poor's Ratings
Group, 26 Broadway (15th Floor), New York, New York 10004, Attention of Asset
Backed Surveillance Department; or as to each of the foregoing, at such other
address as shall be designated by written notice to the other parties.

         SECTION 11.05 NOTICES TO NOTEHOLDERS; WAIVER. Where this Indenture
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) (a) in the case
of Book-Entry Notes, upon delivery to the Clearing Agency in writing and (b) in
the case of Definitive Notes, when mailed, first-class, postage prepaid to each
Noteholder affected by such event, at his address as it appears on the Note
Register, in each case being delivered or mailed, as the case may be, not later
than the latest date, and not earlier than the earliest date, prescribed for the
giving of such notice. In any case where notice to Noteholders is given by mail,
neither the failure to mail such notice nor any defect in any notice so mailed
to any particular Noteholder shall affect the sufficiency of such notice with
respect to other Noteholders, and any notice that is mailed in the manner herein
provided shall conclusively be presumed to have been duly given.

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

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

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

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

         SECTION 11.07 CONFLICT WITH TRUST INDENTURE ACT. If any provision
hereof limits, qualifies or conflicts with another provision hereof that is
required to be included in this

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<PAGE>

Indenture by any of the provisions of the Trust Indenture Act, such required
provision shall control.

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

         SECTION 11.08 EFFECT OF HEADINGS AND TABLE OF CONTENTS. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

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

         SECTION 11.10 SEVERABILITY. If any one or more of the covenants,
agreements, provisions or terms of this Indenture shall be for any reason
whatsoever held invalid or unenforceable in any jurisdiction, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Indenture and shall
in no way affect the validity or enforceability of the other provisions of this
Indenture or of the Notes or the Certificate or the rights of the Holders
thereof.

         SECTION 11.11 BENEFITS OF INDENTURE. Nothing in this Indenture or in
the Notes, express or implied, shall give to any Person, other than the parties
hereto and their successors hereunder, the Owner Trustee, the Administrator, the
Servicer, the Swap Counterparty 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.

         SECTION 11.12 GOVERNING LAW. This indenture shall be governed by and
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 shall be determined in accordance with such
laws.

         SECTION 11.13 COUNTERPARTS. This Indenture may be executed
simultaneously in any number of counterparts, each of which shall be deemed to
be an original, and all of which shall constitute but one and the same
instrument.

         SECTION 11.14 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) 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.

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<PAGE>

         SECTION 11.15 TRUST OBLIGATION. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Swap Counterparty, the
Issuer, the Owner Trustee or the Indenture Trustee on the Interest Rate Swap
Agreement, the Notes or the Certificate or under this Indenture or any
certificate or other writing delivered in connection herewith or therewith,
against (i) the Indenture Trustee or the Owner Trustee in its individual
capacity, (ii) any Certificateholder or other owner of a beneficial interest in
the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director,
employee or agent of the Indenture Trustee or the Owner Trustee in its
individual capacity, any Certificateholder or other owner of a beneficial
interest in the Issuer, the Owner Trustee or the Indenture Trustee or of any
successor or assign of 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, in their
capacities as such, have no such obligations in their individual capacity) and
except that any such partner, owner or beneficiary shall be fully liable, to the
extent provided by applicable law, for any unpaid consideration for stock,
unpaid capital contribution or failure to pay any installment or call owing to
such entity. For all purposes of this Indenture, in the performance of any
duties or obligations of the Issuer hereunder, the Owner Trustee shall be
subject to, and entitled to the benefits of, the terms and provisions of Article
VI, VII and VIII of the Trust Agreement.

         SECTION 11.16 NO PETITION. The Indenture Trustee, by entering into this
Indenture, and each Noteholder (excluding for such purposes the outstanding
principal amount of any Notes held of record or beneficially owned by TMCC,
TMCRC or any of their Affiliates), by accepting a Note, hereby covenant and
agree that they will not at any time institute against the Seller or the Issuer,
or join in any institution against the Seller or the Issuer of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or state bankruptcy or similar law
in connection with any obligations relating to the Notes, the Certificate or any
of the Basic Documents.

         SECTION 11.17 INSPECTION. The Issuer agrees that, on reasonable prior
notice, it will permit any representative of the Indenture Trustee, 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 (at the expense of the requesting party) such books to be audited by
Independent certified public accountants, and to discuss the Issuer's affairs,
finances and accounts with the Issuer's officers, employees, and Independent
certified public accountants, all at such reasonable times and as often as may
be reasonably requested. The Indenture Trustee shall and shall cause its
representatives to hold in confidence all such information except to the extent
disclosure may be required by law (and all reasonable applications for
confidential treatment are unavailing) and except to the extent that the
Indenture Trustee may reasonably determine that such disclosure is consistent
with its obligations hereunder.

                                       63
<PAGE>

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

                                    TOYOTA AUTO RECEIVABLES 2001-A OWNER
                                    TRUST

                                    By:  U.S. BANK TRUST NATIONAL ASSOCIATION,
                                         not in its individual capacity but
                                         solely as Owner Trustee

                                    By:  /s/   MELISSA ROSAL
                                         ---------------------------------------
                                         Name:  Melissa A. Rosal
                                         Title:   Vice President

                                    U.S. BANK NATIONAL ASSOCIATION,
                                         not in its individual capacity but
                                         solely as Indenture Trustee

                                    By:  /s/   MELISSA ROSAL
                                         ---------------------------------------
                                         Name:  Melissa A. Rosal
                                         Title:   Vice President

                                      S-1
<PAGE>

STATE OF
        --------------------

COUNTY OF
         -------------------

         BEFORE ME, the undersigned authority, a Notary Public in and for said
county and state, on this day personally appeared , known to me to be the person
and officer whose name is subscribed to the foregoing instrument and
acknowledged to me that the same was the act of the said U.S. BANK TRUST
NATIONAL ASSOCIATION, not in its individual capacity but as Owner Trustee of the
TOYOTA AUTO RECEIVABLES 2001-A OWNER TRUST, a Delaware business trust, and that
such person executed the same as the act of said business trust for the purpose
and consideration therein expressed, and in the capacities therein stated.

         GIVEN UNDER MY HAND AND SEAL OF OFFICE, this 1st day of January, 2001.

                             ---------------------------------------------------
                             Notary Public in and for the State of
                                                                  --------------

(Seal)

My commission expires:

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

<PAGE>

STATE OF
        --------------------

COUNTY OF
         -------------------

         BEFORE ME, the undersigned authority, a Notary Public in and for said
county and state, on this day personally appeared , known to me to be the person
and officer whose name is subscribed to the foregoing instrument and
acknowledged to me that the same was the act of the said U.S. BANK NATIONAL
ASSOCIATION, not in its individual capacity but as Indenture Trustee and
Securities Intermediary in connection with the Toyota Auto Receivables 2001-A
Owner Trust, a Delaware business trust, and that such person executed the same
as the act of said business trust for the purpose and consideration therein
expressed, and in the capacities therein stated.

         GIVEN UNDER MY HAND AND SEAL OF OFFICE, this 1st day of January, 2001.

                             ---------------------------------------------------
                             Notary Public in and for the State of
                                                                  --------------

(Seal)

My commission expires:

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

<PAGE>

                                   EXHIBIT A-1

                             FORM OF CLASS A-1 NOTE

         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.

         THIS NOTE HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED EXCEPT (I) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, (II) IN A TRANSACTION (OTHER THAN A TRANSACTION IN CLAUSE (IV)
BELOW) EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
APPLICABLE STATE AND FOREIGN SECURITIES LAWS, (III) TO ANY AFFILIATE OF TOYOTA
MOTOR CREDIT CORPORATION OR (IV) TO A PERSON WHO THE TRANSFEROR OF SUCH CLASS
A-1 NOTE REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A UNDER THE SECURITIES ACT AND THAT IS AWARE THAT THE RESALE
OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A OR TO AN INSTITUTIONAL
"ACCREDITED INVESTOR" AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) UNDER THE
SECURITIES ACT, AND IN ANY CASE MAY BE TRANSFERRED ONLY IN COMPLIANCE WITH THE
PROVISIONS OF THE INDENTURE GOVERNING TRANSFER OF THE CLASS A-1 NOTES.

         THIS NOTE IS NOT AN OBLIGATION OF, AND WILL NOT BE INSURED OR
GUARANTEED BY, ANY GOVERNMENTAL AGENCY OR TOYOTA MOTOR CREDIT RECEIVABLES
CORPORATION, TOYOTA MOTOR CREDIT CORPORATION, TOYOTA MOTOR SALES, U.S.A., INC.,
TOYOTA FINANCIAL SERVICES CORPORATION, THE INDENTURE TRUSTEE, THE OWNER TRUSTEE
OR ANY OF THEIR RESPECTIVE AFFILIATES. THE PRINCIPAL AND INTEREST ON THIS NOTE
IS PAYABLE SOLELY FROM PAYMENTS ON THE RECEIVABLES AND AMOUNTS ON DEPOSIT IN THE
RESERVE ACCOUNT.

                                     A-1-1
<PAGE>

No. 1                                                           $317,048,000.00

                   TOYOTA AUTO RECEIVABLES 2001-A OWNER TRUST

                       CLASS A-1 5.613% ASSET BACKED NOTES

         Toyota Auto Receivables 2001-A Owner Trust, a business 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 TOYOTA MOTOR CREDIT
CORPORATION, or registered assigns, the principal sum of THREE HUNDRED SEVENTEEN
MILLION, FOURTY-EIGHT THOUSAND DOLLARS ($317,048,000.00) payable on each Payment
Date in an amount equal to the result obtained by multiplying (i) a fraction the
numerator of which is $317,048,000.00 and the denominator of which is
$317,048,000.00 by (ii) the aggregate amount, if any, payable from the
Collection Account or Principal Distribution Account in respect of principal on
the Class A-1 Notes pursuant to Section 3.01 of the Indenture dated as of
January 1, 2001, between the Issuer and U.S. Bank National Association, a
national banking association, as Indenture Trustee (the "Indenture Trustee") and
Sections 5.06(c) and 5.06(d) of the Sale and Servicing Agreement dated as of
January 1, 2001, between the Issuer, TMCRC, as Seller, and TMCC, as Servicer
(which amounts will be limited to the portion of Available Collections available
to make the payments specified in such Sections); provided, however, that the
entire unpaid principal amount of this Note shall be due and payable on the
earlier of the Payment Date occurring in January 2002 (the "Class A-1 Final
Scheduled Payment Date") and the Payment Date described in Section 10.01 of the
Indenture. Capitalized terms used but not defined herein have the meanings
ascribed thereto in the Indenture and the Sale and Servicing Agreement, as the
case may be.

         The Issuer will pay interest on this Note at the rate per annum shown
above on each Payment Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note outstanding on the
preceding Payment Date (after giving effect to all payments of principal made on
the preceding Payment Date), subject to certain limitations contained in Section
3.01 of the Indenture and Sections 5.06(c) and 5.06(d) of the Sale and Servicing
Agreement. Interest on this Note will accrue from, and including, each Payment
Date (or, in the case of the first Payment Date, from, and including, the
Closing Date) to, but excluding, the subsequent Payment Date. Interest will be
computed on the basis specified in the Indenture for each Interest Period. Such
principal of and interest on this Note shall be paid in the manner specified on
the reverse hereof.

         The principal of and interest on this Note is 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 shall 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 shall have the same effect as though fully set forth
on the face of this Note.

                                     A-1-2
<PAGE>

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

                                     A-1-3
<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.

Date:  January 25, 2001

                                        TOYOTA AUTO RECEIVABLES 2001-A
                                        OWNER TRUST

                                        By:  U.S. BANK TRUST NATIONAL
                                         ASSOCIATION
                                             not in its individual capacity but
                                             solely as Owner Trustee under the
                                             Trust Agreement,

                                        By:
                                           -------------------------------------
                                             Authorized Signatory

                                     A-1-4
<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Date:  January 25, 2001

                                     U.S. BANK NATIONAL ASSOCIATION,
                                       not in its individual capacity but solely
                                       as Indenture Trustee,

                                     By:
                                        ----------------------------------------
                                          Authorized Signatory

                                     A-1-5
<PAGE>

         This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its 5.613% Asset Backed Notes, Class A-1 (herein called the "Class
A-1 Notes"), all issued under the Indenture, to which 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 Class A-1 Notes are subject to all
terms of the Indenture.

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

         Principal of the Class A-1 Notes will be payable on each Payment Date
in an amount described in the Indenture. "Payment Date" means the fifteenth day
of each month, or, if any such date is not a Business Day, the next succeeding
Business Day, commencing February 15, 2001.

         Notwithstanding the foregoing, the entire unpaid principal amount of
the Notes shall be due and payable (i) on the date on which an Event of Default
shall have occurred and be continuing and the Indenture Trustee or the Holders
of at least 51% of the Outstanding Amount of the Class A Notes, acting together
as a single class (but excluding for such purposes the outstanding principal
amount of any Notes held of record or beneficially owned by TMCC, TMCRC or any
of their Affiliates) have declared the Notes to be immediately due and payable
in the manner provided in Section 5.02 of the Indenture, (ii) following the
termination or liquidation of the Trust Estate in connection with the exercise
by the Servicer of its option to purchase the Receivables pursuant to Section
9.01 of the Sale and Servicing Agreement and Section 10.02 of the Indenture or
(iii) within 90 days of certain Insolvency Events with respect to TMCRC. All
principal payments on the Class A-1 Notes shall be made pro rata to the Class
A-1 Noteholders entitled thereto.

         Payments of interest on this Note due and payable on each Payment Date,
together with the installment of principal, if any, to the extent not in full
payment of this Note, shall be paid to the Person in whose name such Note (or
one or more Predecessor Notes) is registered in the Note Register on the Record
Date. Such payment will be made by check mailed first-class postage prepaid to
such Person's address as it appears on the Note Register on such Record Date or
by wire transfer to the account specified by the registered holder of any Note
with a face amount of at least $10,000,000. Any reduction in the principal
amount of this Note (or any one or more Predecessor Notes) effected by any
payments made on any Payment Date shall 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 Payment Date, then
the Indenture Trustee, in the name of and on behalf of the Issuer, will notify
the Person who was the Registered Holder hereof as of the Record Date preceding
such Payment Date by notice mailed or transmitted by facsimile prior to such
Payment Date, and the amount then due and payable shall be payable only upon
presentation and surrender of this Note at the Indenture Trustee's principal
Corporate Trust Office or at the office of the Indenture Trustee's agent
appointed for such purposes located in The City of New York.

         The Issuer shall pay interest on overdue installments of interest at
the Class A-1 Rate to the extent lawful.

                                     A-1-6
<PAGE>

         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, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee as set forth in Section 2.04 of the Indenture, 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 Noteholder 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 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 (i) the Indenture Trustee or the Owner Trustee in its
individual capacity, (ii) any owner of a beneficial interest in the Issuer or
(iii) any partner, owner, beneficiary, agent, officer, director or employee of
the Indenture Trustee or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Owner Trustee or the
Indenture Trustee or of any successor or assign of 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, in their capacities as such, have no such obligations in their
individual capacity) and except that any such partner, owner or beneficiary
shall be fully liable, to the extent provided by applicable law, for any unpaid
consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity. The Holder of this Note by its
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
shall have no claim against any of the foregoing for any deficiency, loss or
claim therefrom; provided, however, that nothing contained herein shall 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.

         Each Noteholder or Note Owner that is not TMCC, TMCRC or an Affiliate
of either of them, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees by accepting the benefits of
the Indenture that such Noteholder or Note Owner will not at any time institute
against the Seller or the Issuer, or join in any institution against the Seller
or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings under any United States federal or state bankruptcy or
similar law in connection with any obligations relating to the Notes, the
Indenture or the Basic Documents.

         The Issuer has entered into the Indenture and this Note is issued with
the intention that, for federal, state and local income, single business and
franchise tax purposes, the Notes will qualify as indebtedness of the Issuer
secured by the Trust Estate. Each Noteholder, by acceptance of a Note (and each
Note Owner by acceptance of a beneficial interest in a Note), agrees to treat
the Notes for federal, state and local income, single business and franchise tax
purposes as indebtedness of the Issuer.

         Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in

                                     A-1-7
<PAGE>

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 none of the Issuer, the
Indenture Trustee or any such agent shall be affected by notice to the contrary.

         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, in some
cases without the consent of the Holders of any Class of Notes and in other
cases with the consent of Holders of only certain Classes of Notes. Section 5.12
of the Indenture also contains provisions permitting the Holders of Notes
representing specified percentages of the outstanding principal amount of the
Notes of the Class or Classes specified therein, on behalf of the Holders of all
the Notes of such Classes, 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 or more Predecessor Notes) shall 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
Holders of Notes 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 shall 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 shall be determined in accordance with such laws.

         No reference herein to the Indenture and no provision of this Note or
of the Indenture shall 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.

                                     A-1-8
<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:                     */
      ---------------------

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

*/ NOTICE: 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 whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar, which requirements include membership or
participation in 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 Securities Exchange Act of 1934, as amended.

                                     A-1-9
<PAGE>

                                   EXHIBIT A-2

                                 CLASS A-2 NOTE

         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.

         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.

         THIS NOTE IS NOT AN OBLIGATION OF, AND WILL NOT BE INSURED OR
GUARANTEED BY, ANY GOVERNMENTAL AGENCY OR TOYOTA MOTOR CREDIT RECEIVABLES
CORPORATION, TOYOTA MOTOR CREDIT CORPORATION, TOYOTA MOTOR SALES, U.S.A., INC.,
TOYOTA FINANCIAL SERVICES CORPORATION, THE INDENTURE TRUSTEE, THE OWNER TRUSTEE
OR ANY OF THEIR RESPECTIVE AFFILIATES. THE PRINCIPAL AND INTEREST ON THIS NOTE
IS PAYABLE SOLELY FROM PAYMENTS ON THE RECEIVABLES AND AMOUNTS ON DEPOSIT IN THE
RESERVE ACCOUNT.

                                     A-2-1
<PAGE>

No. [______]                                                    $[_____________]
                                                     CUSIP No. [_______________]
                                                    ISIN No. : [_______________]

                   TOYOTA AUTO RECEIVABLES 2001-A OWNER TRUST

                       CLASS A-2 5.380% ASSET BACKED NOTES

         Toyota Auto Receivables 2001-A Owner Trust, a business 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 [___________________________________]
MILLION DOLLARS ($[_______________]) payable on each Payment Date in an amount
equal to the result obtained by multiplying (i) a fraction the numerator of
which is $[______________] and the denominator of which is $[______________] by
(ii) the aggregate amount, if any, payable from the Collection Account or
Principal Distribution Account in respect of principal on the Class A-2 Note
pursuant to Section 3.01 of the Indenture dated as of January 1, 2001, between
the Issuer and U.S. Bank National Association, a national banking association,
as Indenture Trustee (the "Indenture Trustee") and Sections 5.06(c) and 5.06(d)
of the Sale and Servicing Agreement dated as of January 1, 2001, between the
Issuer, TMCRC, as Seller, and TMCC, as Servicer (which amounts will be limited
to the portion of Available Collections available to make the payments specified
in such Sections); provided, however, that the entire unpaid principal amount of
this Note shall be due and payable on the earlier of the Payment Date occurring
in December 2003 (the "Class A-2 Final Scheduled Payment Date") and the Payment
Date described in Section 10.01 of the Indenture. Capitalized terms used but not
defined herein have the meanings ascribed thereto in the Indenture and the Sale
and Servicing Agreement, as the case may be.

         The Issuer will pay interest on this Note at the rate per annum shown
above on each Payment Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note outstanding on the
preceding Payment Date (after giving effect to all payments of principal made on
the preceding Payment Date), subject to certain limitations contained in Section
3.01 of the Indenture and Sections 5.06(c) and 5.06(d) of the Sale and Servicing
Agreement. Interest on this Note will accrue from, and including, the fifteenth
day of each calendar month (or, in the case of the first Payment Date, from, and
including, the Closing Date) to, but excluding, the fifteenth day of the
succeeding calendar month. Interest will be computed on the basis specified in
the Indenture for each Interest Period. Such principal of and interest on this
Note shall be paid in the manner specified on the reverse hereof.

         The principal of and interest on this Note is 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 shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

                                     A-2-2
<PAGE>

         Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall 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
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

                                     A-2-3
<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.

Date:  January 25, 2001

                                        TOYOTA AUTO RECEIVABLES 2001-A
                                        OWNER TRUST

                                        By:  U.S. BANK TRUST NATIONAL
                                         ASSOCIATION
                                             not in its individual capacity but
                                             solely as Owner Trustee under the
                                             Trust Agreement,

                                        By:
                                           -------------------------------------
                                             Authorized Signatory

                                     A-2-4
<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Date:  January 25, 2001

                                     U.S. BANK NATIONAL ASSOCIATION,
                                       not in its individual capacity but solely
                                       as Indenture Trustee,

                                     By:
                                        ----------------------------------------
                                          Authorized Signatory

                                     A-2-5
<PAGE>

         This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its 5.380% Asset Backed Notes, Class A-2 (herein called the "Class
A-2 Notes"), all issued under the Indenture, to which 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 Class A-2 Notes are subject to all
terms of the Indenture.

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

         Principal of the Class A-2 Notes will be payable on each Payment Date
in an amount described in the Indenture. "Payment Date" means the fifteenth day
of each month, or, if any such date is not a Business Day, the next succeeding
Business Day, commencing February 15, 2001.

         Notwithstanding the foregoing, the entire unpaid principal amount of
the Notes shall be due and payable (i) on the date on which an Event of Default
shall have occurred and be continuing and the Indenture Trustee or the Holders
of at least 51% of the Outstanding Amount of the Class A Notes, acting together
as a single class (but excluding for such purposes the outstanding principal
amount of any Notes held of record or beneficially owned by TMCC, TMCRC or any
of their Affiliates) have declared the Notes to be immediately due and payable
in the manner provided in Section 5.02 of the Indenture, (ii) following the
termination or liquidation of the Trust Estate in connection with the exercise
by the Servicer of its option to purchase the Receivables pursuant to Section
9.01 of the Sale and Servicing Agreement and Section 10.02 of the Indenture or
(iii) within 90 days of certain Insolvency Events with respect to TMCRC. All
principal payments on the Class A-2 Notes shall be made pro rata to the Class
A-2 Noteholders entitled thereto.

         Payments of interest on this Note due and payable on each Payment Date,
together with the installment of principal, if any, to the extent not in full
payment of this Note, shall be paid to the Person in whose name such Note (or
one or more Predecessor Notes) is registered in the Note Register on the Record
Date. 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, except for the final installment of
principal payable with respect to such Note on a Payment Date or on the
applicable Final Scheduled Payment Date, which shall be payable as provided
below. Such payment will be made by check mailed first-class postage prepaid to
such Person's address as it appears on the Note Register on such Record Date or
by wire transfer to the account specified by the registered holder of any Note
with a face amount of at least $10,000,000. Any reduction in the principal
amount of this Note (or any one or more Predecessor Notes) effected by any
payments made on any Payment Date shall 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 Payment Date, then
the Indenture Trustee, in the name of and on behalf of the Issuer, will notify
the Person who was the Registered Holder hereof as of the Record Date

                                     A-2-6
<PAGE>

preceding such Payment Date by notice mailed or transmitted by facsimile prior
to such Payment Date, and the amount then due and payable shall be payable only
upon presentation and surrender of this Note at the Indenture Trustee's
principal Corporate Trust Office or at the office of the Indenture Trustee's
agent appointed for such purposes located in The City of New York.

         The Issuer shall pay interest on overdue installments of interest at
the Class A-2 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, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee as set forth in Section 2.04 of the Indenture, 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 Noteholder 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 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 (i) the Indenture Trustee or the Owner Trustee in its
individual capacity, (ii) any owner of a beneficial interest in the Issuer or
(iii) any partner, owner, beneficiary, agent, officer, director or employee of
the Indenture Trustee or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Owner Trustee or the
Indenture Trustee or of any successor or assign of 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, in their capacities as such, have no such obligations in their
individual capacity) and except that any such partner, owner or beneficiary
shall be fully liable, to the extent provided by applicable law, for any unpaid
consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity. The Holder of this Note by its
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
shall have no claim against any of the foregoing for any deficiency, loss or
claim therefrom; provided, however, that nothing contained herein shall 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.

         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 by
accepting the benefits of the Indenture that such Noteholder or Note Owner will
not at any time institute against the Seller or the Issuer, or join in any
institution against the Seller or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any United States
federal or state bankruptcy or similar law in connection with any obligations
relating to the Notes, the Indenture or the Basic Documents.

                                     A-2-7
<PAGE>

         The Issuer has entered into the Indenture and this Note is issued with
the intention that, for federal, state and local income, single business and
franchise tax purposes, the Notes will qualify as indebtedness of the Issuer
secured by the Trust Estate. Each Noteholder, by acceptance of a Note (and each
Note Owner by acceptance of a beneficial interest in a Note), agrees to treat
the Notes for federal, state and local income, single business and franchise tax
purposes as indebtedness of the Issuer.

         Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee 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 none of the Issuer, the Indenture Trustee or any such agent shall
be affected by notice to the contrary.

         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, in some
cases without the consent of the Holders of any Class of Notes and in other
cases with the consent of Holders of only certain Classes of Notes. Section 5.12
of the Indenture also contains provisions permitting the Holders of Notes
representing specified percentages of the outstanding principal amount of the
Notes of the Class or Classes specified therein, on behalf of the Holders of all
the Notes of such Classes, 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 or more Predecessor Notes) shall 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
Holders of Notes 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 shall 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 shall be determined in accordance with such laws.

         No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the

                                     A-2-8
<PAGE>

principal of and interest on this Note at the times, place and rate, and in the
coin or currency herein prescribed.

                                     A-2-9
<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:                     */
      ---------------------

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

*/ NOTICE: 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 whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar, which requirements include membership or
participation in 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 Securities Exchange Act of 1934, as amended.

                                     A-2-10
<PAGE>

                                   EXHIBIT A-3

                        CLASS A-3 NOTE AND CLASS A-4 NOTE

         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.

         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.

         THIS NOTE IS NOT AN OBLIGATION OF, AND WILL NOT BE INSURED OR
GUARANTEED BY, ANY GOVERNMENTAL AGENCY OR TOYOTA MOTOR CREDIT RECEIVABLES
CORPORATION, TOYOTA MOTOR CREDIT CORPORATION, TOYOTA MOTOR SALES, U.S.A., INC.,
TOYOTA FINANCIAL SERVICES CORPORATION, THE INDENTURE TRUSTEE, THE OWNER TRUSTEE
OR ANY OF THEIR RESPECTIVE AFFILIATES. THE PRINCIPAL AND INTEREST ON THIS NOTE
IS PAYABLE SOLELY FROM PAYMENTS ON THE RECEIVABLES AND AMOUNTS ON DEPOSIT IN THE
RESERVE ACCOUNT.

                                     A-3-1
<PAGE>

No. [______]                                                    $[_____________]
                                                     CUSIP No. [_______________]
                                                    ISIN No. : [_______________]

                   TOYOTA AUTO RECEIVABLES 2001-A OWNER TRUST

                       CLASS A-2 5.380% ASSET BACKED NOTES

         Toyota Auto Receivables 2001-A Owner Trust, a business 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 [___________________________________]
MILLION DOLLARS ($[_______________]) payable on each Payment Date in an amount
equal to the result obtained by multiplying (i) a fraction the numerator of
which is $[______________] and the denominator of which is $[______________] by
(ii) the aggregate amount, if any, payable from the Collection Account or
Principal Distribution Account in respect of principal on the [Class A-3][Class
A-4] Notes pursuant to Section 3.01 of the Indenture dated as of January 1,
2001, between the Issuer and U.S. Bank National Association, a national banking
association, as Indenture Trustee (the "Indenture Trustee") and Sections 5.06(c)
and 5.06(d) of the Sale and Servicing Agreement dated as of January 1, 2001,
between the Issuer, TMCRC, as Seller, and TMCC, as Servicer (which amounts will
be limited to the portion of Available Collections available to make the
payments specified in such Sections); provided, however, that the entire unpaid
principal amount of this Note shall be due and payable on the earlier of the
Payment Date occurring in [__________] 20[__] (the "[Class A-3][Class A-4] Final
Scheduled Payment Date") and the Payment Date described in Section 10.01 of the
Indenture. Capitalized terms used but not defined herein have the meanings
ascribed thereto in the Indenture and the Sale and Servicing Agreement, as the
case may be.

         The Issuer will pay interest on this Note at the rate of one-month
LIBOR/plus ___% on each Payment Date until the principal of this Note is paid or
made available for payment, on the principal amount of this Note outstanding on
the preceding Payment Date (after giving effect to all payments of principal
made on the preceding Payment Date), subject to certain limitations contained in
Section 3.01 of the Indenture and Sections 5.06(c) and 5.06(d) of the Sale and
Servicing Agreement. Interest on this Note will accrue from, and including, the
Payment Date (or, in the case of the first Payment Date, from, and including,
the Closing Date) to, but excluding, the subsequent Payment Date. Interest will
be computed on the basis specified in the Indenture for each Interest Period.
Such principal of and interest on this Note shall be paid in the manner
specified on the reverse hereof.

         The principal of and interest on this Note is 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 shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

                                     A-3-2
<PAGE>

         Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall 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
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

                                     A-3-3
<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.

Date:  January 25, 2001

                                        TOYOTA AUTO RECEIVABLES 2001-A
                                        OWNER TRUST

                                        By:  U.S. BANK TRUST NATIONAL
                                         ASSOCIATION
                                             not in its individual capacity but
                                             solely as Owner Trustee under the
                                             Trust Agreement,

                                        By:
                                           -------------------------------------
                                             Authorized Signatory

                                     A-3-4
<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Date:  January 25, 2001

                                     U.S. BANK NATIONAL ASSOCIATION,
                                       not in its individual capacity but solely
                                       as Indenture Trustee,

                                     By:
                                        ----------------------------------------
                                          Authorized Signatory

                                     A-3-5
<PAGE>

         This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Floating Rate Asset Backed Notes, [Class A-3][Class A-4]
(herein called the "[Class A-3][Class A-4] Notes"), all issued under the
Indenture, to which 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 [Class A-3][Class A-4] Notes are subject to all terms of the Indenture.

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

         Principal of the [Class A-3][Class A-4] Notes will be payable on each
Payment Date in an amount described in the Indenture. "Payment Date" means the
fifteenth day of each month, or, if any such date is not a Business Day, the
next succeeding Business Day, commencing February 15, 2001.

         Notwithstanding the foregoing, the entire unpaid principal amount of
the Notes shall be due and payable (i) on the date on which an Event of Default
shall have occurred and be continuing and the Indenture Trustee or the Holders
of at least 51% of the Outstanding Amount of the Class A Notes, acting together
as a single class (but excluding for such purposes the outstanding principal
amount of any Notes held of record or beneficially owned by TMCC, TMCRC or any
of their Affiliates) have declared the Notes to be immediately due and payable
in the manner provided in Section 5.02 of the Indenture, (ii) following the
termination or liquidation of the Trust Estate in connection with the exercise
by the Servicer of its option to purchase the Receivables pursuant to Section
9.01 of the Sale and Servicing Agreement and Section 10.02 of the Indenture or
(iii) within 90 days of certain Insolvency Events with respect to TMCRC. All
principal payments on the [Class A-3][Class A-4] Notes shall be made pro rata to
the [Class A-3][Class A-4] Noteholders entitled thereto.

         Payments of interest on this Note due and payable on each Payment Date,
together with the installment of principal, if any, to the extent not in full
payment of this Note, shall be paid to the Person in whose name such Note (or
one or more Predecessor Notes) is registered in the Note Register on the Record
Date. 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, except for the final installment of
principal payable with respect to such Note on a Payment Date or on the
applicable Final Scheduled Payment Date, which shall be payable as provided
below. Such payment will be made by check mailed first-class postage prepaid to
such Person's address as it appears on the Note Register on such Record Date or
by wire transfer to the account specified by the registered holder of any Note
with a face amount of at least $10,000,000. Any reduction in the principal
amount of this Note (or any one or more Predecessor Notes) effected by any
payments made on any Payment Date shall 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 Payment Date, then
the Indenture Trustee, in the name of and on behalf of the Issuer, will notify
the Person who was the Registered Holder hereof as of the Record Date

                                     A-3-6
<PAGE>

preceding such Payment Date by notice mailed or transmitted by facsimile prior
to such Payment Date, and the amount then due and payable shall be payable only
upon presentation and surrender of this Note at the Indenture Trustee's
principal Corporate Trust Office or at the office of the Indenture Trustee's
agent appointed for such purposes located in The City of New York.

         The Issuer shall pay interest on overdue installments of interest at
the [Class A-3][Class A-4] 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, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee as set forth in Section 2.04 of the Indenture, 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 Noteholder 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 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 (i) the Indenture Trustee or the Owner Trustee in its
individual capacity, (ii) any owner of a beneficial interest in the Issuer or
(iii) any partner, owner, beneficiary, agent, officer, director or employee of
the Indenture Trustee or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Owner Trustee or the
Indenture Trustee or of any successor or assign of 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, in their capacities as such, have no such obligations in their
individual capacity) and except that any such partner, owner or beneficiary
shall be fully liable, to the extent provided by applicable law, for any unpaid
consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity. The Holder of this Note by its
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
shall have no claim against any of the foregoing for any deficiency, loss or
claim therefrom; provided, however, that nothing contained herein shall 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.

         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 by
accepting the benefits of the Indenture that such Noteholder or Note Owner will
not at any time institute against the Seller or the Issuer, or join in any
institution against the Seller or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any United States
federal or state bankruptcy or similar law in connection with any obligations
relating to the Notes, the Indenture or the Basic Documents.

                                     A-3-7
<PAGE>

         The Issuer has entered into the Indenture and this Note is issued with
the intention that, for federal, state and local income, single business and
franchise tax purposes, the Notes will qualify as indebtedness of the Issuer
secured by the Trust Estate. Each Noteholder, by acceptance of a Note (and each
Note Owner by acceptance of a beneficial interest in a Note), agrees to treat
the Notes for federal, state and local income, single business and franchise tax
purposes as indebtedness of the Issuer.

         Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee 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 none of the Issuer, the Indenture Trustee or any such agent shall
be affected by notice to the contrary.

         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, in some
cases without the consent of the Holders of any Class of Notes and in other
cases with the consent of Holders of only certain Classes of Notes. Section 5.12
of the Indenture also contains provisions permitting the Holders of Notes
representing specified percentages of the outstanding principal amount of the
Notes of the Class or Classes specified therein, on behalf of the Holders of all
the Notes of such Classes, 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 or more Predecessor Notes) shall 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
Holders of Notes 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 shall 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 shall be determined in accordance with such laws.

         No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the

                                     A-3-8
<PAGE>

principal of and interest on this Note at the times, place and rate, and in the
coin or currency herein prescribed.

                                     A-3-9
<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:                     */
      ---------------------

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

*/ NOTICE: 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 whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar, which requirements include membership or
participation in 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 Securities Exchange Act of 1934, as amended.

                                     A-3-10
<PAGE>

                                    EXHIBIT B

                       (Form of Note Depository Agreement)

                                     B-1-1

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