Document:

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                                                                     EXHIBIT 4.1

                                                                  Execution Copy

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                                POOLING AGREEMENT

                                     BETWEEN

                NAVISTAR FINANCIAL RETAIL RECEIVABLES CORPORATION

                                     SELLER

                                       AND

                      NAVISTAR FINANCIAL 2003-A OWNER TRUST

                                     ISSUER

                            DATED AS OF JUNE 5, 2003

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                                TABLE OF CONTENTS

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<S>                                                                                                         <C>
ARTICLE I DEFINITIONS........................................................................................1
         SECTION 1.01          Definitions...................................................................1

ARTICLE II CONVEYANCE OF RECEIVABLES; ORIGINAL ISSUANCE OF CERTIFICATES......................................1
         SECTION 2.01          Conveyance of Initial Receivables.............................................1
         SECTION 2.02          Conveyance of Subsequent Receivables..........................................3
         SECTION 2.03          Custody of Receivable Files...................................................5
         SECTION 2.04          Acceptance by Issuer; Limitation on Transfer of
                               International Purchase Obligations ...........................................6
         SECTION 2.05          Representations and Warranties as to the Receivables..........................6
         SECTION 2.06          Repurchase of Receivables Upon Breach of Warranty.............................7

ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE SELLER.....................................................7
         SECTION 3.01          Representations and Warranties of the Seller..................................7
         SECTION 3.02          Liability of Seller...........................................................9
         SECTION 3.03          Merger or Consolidation of, or Assumption of the
                               Obligations of, Seller; Amendment of Certificate of
                               Incorporation.................................................................9
         SECTION 3.04          Limitation on Liability of Seller and Others.................................10
         SECTION 3.05          Seller May Own Securities....................................................10

ARTICLE IV TERMINATION......................................................................................10
         SECTION 4.01          Optional Purchase of All Receivables.........................................10
         SECTION 4.02          Termination..................................................................11

ARTICLE V MISCELLANEOUS PROVISIONS..........................................................................11
         SECTION 5.01          Amendment....................................................................11
         SECTION 5.02          Protection of Title to Owner Trust Estate....................................13
         SECTION 5.03          Notices......................................................................14
         SECTION 5.04          Governing Law................................................................14
         SECTION 5.05          Severability of Provisions...................................................15
         SECTION 5.06          Assignment...................................................................15
         SECTION 5.07          Third-Party Beneficiaries....................................................15
         SECTION 5.08          Separate Counterparts........................................................15
         SECTION 5.09          Headings and Cross-References................................................15
         SECTION 5.10          Assignment to Indenture Trustee..............................................15
         SECTION 5.11          No Petition Covenants; Waiver of Claims......................................15
         SECTION 5.12          Limitation of Liability of the Trustees......................................16
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                                     - ii -

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EXHIBIT A         Locations of Composite Schedule of Receivables
EXHIBIT B         Form of Initial PSA Assignment
EXHIBIT C         Form of Subsequent Transfer PSA Assignment
APPENDIX A        Defined Terms and Rules of Construction
APPENDIX B        Notice Addresses and Procedures

                                     - iii -

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                                POOLING AGREEMENT

        THIS POOLING AGREEMENT is made as of June 5, 2003 by and between
Navistar Financial Retail Receivables Corporation, a Delaware corporation
("NFRRC" and, in its capacity as the Seller hereunder, the "Seller") and
Navistar Financial 2003-A Owner Trust, a Delaware statutory trust (the
"Issuer").

        WHEREAS, NFC has sold the Initial Receivables, and has agreed to sell
Subsequent Receivables, to the Seller pursuant to the Purchase Agreement.

        WHEREAS, the Seller desires to sell the Initial Receivables and
Subsequent Receivables (collectively, the "Receivables"), to the Issuer in
exchange for the Securities and the payment of funds withdrawn from the
Pre-Funding Account pursuant to the terms of this Agreement.

        WHEREAS, the Seller and the Issuer wish to set forth the terms pursuant
to which the Receivables are to be sold by the Seller to the Issuer.

        NOW, THEREFORE, in consideration of the foregoing, the other good and
valuable consideration and the mutual terms and covenants contained herein, the
parties hereto agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

        SECTION 1.01            Definitions. Certain capitalized terms used in
the above recitals and in this Agreement are defined in and shall have the
respective meanings assigned them in Part I of Appendix A to this Agreement. All
references herein to "the Agreement" or "this Agreement" are to this Pooling
Agreement as it may be amended, supplemented (whether by Subsequent Transfer PSA
Assignment or otherwise) or modified from time to time, the exhibits hereto and
the capitalized terms used herein which are defined in such Appendix A, and all
references herein to Articles, Sections and subsections are to Articles,
Sections or subsections of this Agreement unless otherwise specified. The rules
of construction set forth in Part II of such Appendix A shall be applicable to
this Agreement.

                                   ARTICLE II
          CONVEYANCE OF RECEIVABLES; ORIGINAL ISSUANCE OF CERTIFICATES

        SECTION 2.01            Conveyance of Initial Receivables. In
consideration of the Issuer's delivery of the Securities to, or upon the order
of, the Seller, the Seller does hereby enter into this Agreement and agree to
fulfill all of its obligations hereunder and to sell, transfer, assign, set over
and otherwise convey to the Issuer, without recourse (except as provided in
Section 2.06), pursuant to an assignment in the form attached hereto as Exhibit
B (the "Initial PSA Assignment"), all right, title and interest of the Seller
in, to and under:

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                (a)     the Retail Notes identified on the Schedule of Retail
Notes to the Initial PSA Assignment delivered to the Issuer and the Related
Retail Note Assets with respect to those Retail Notes;

                (b)     the Series 2003-A Portfolio Interest, the Series 2003-A
Portfolio Certificate and the beneficial interest in the Series 2003-A Portfolio
Assets, including the Retail Leases identified on the Schedule of Retail Leases
to the Initial PSA Assignment delivered to the Issuer and the Related Titling
Trust Assets with respect to those Retail Leases;

                (c)     the rights, but not the obligations, of NFC under the
Lease Purchase Agreement and the Initial LPA Assignment with respect to the
Retail Leases included in the Initial Receivables; and

                (d)     the rights, but not the obligations, of the Seller under
the Purchase Agreement and the Initial PA Assignment pursuant to Section 2.01 of
the Purchase Agreement with respect to the Initial Receivables.

In addition, on the Closing Date the Seller shall deposit the Reserve Account
Initial Deposit into the Reserve Account, the Pre-Funding Account Initial
Deposit into the Pre-Funding Account and the Negative Carry Account Initial
Deposit into the Negative Carry Account. It is the intention of the Seller that
the transfer and assignment contemplated by this Section 2.01 shall constitute a
sale of the Initial Receivables, the Series 2003-A Portfolio Interest and the
Series 2003-A Portfolio Certificate from the Seller to the Issuer and the
beneficial interest in and title to the assets conveyed pursuant to this Section
2.01 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. Within
two Business Days after the Closing Date, the Seller shall cause to be deposited
into the Collection Account all collections (from whatever source) on or with
respect to the assets conveyed pursuant to this Section 2.01 received by the
Seller pursuant to Section 5.07 of the Purchase Agreement. The Seller intends to
treat such transfer and assignment as a sale for accounting and tax purposes.
Notwithstanding the foregoing, in the event a court of competent jurisdiction
determines that such transfer and assignment did not constitute such a sale or
that such beneficial interest is a part of the Seller's estate, then (i) the
Seller shall be deemed to have granted to the Issuer a first priority perfected
security interest in all of the Seller's right title and interest in, to and
under the assets conveyed pursuant to this Section 2.01, and the Seller hereby
grants such security interest and (ii) the assets conveyed pursuant to this
Section 2.01 shall be deemed to include all rights, powers and options (but none
of the obligations, if any) of the Seller under any agreement or instrument
included in the assets conveyed pursuant to this Section 2.01, including the
immediate and continuing right to claim for, collect, receive and give receipt
for lease payments and principal and interest payments in respect of the Initial
Receivables included in the assets conveyed pursuant to this Section 2.01 and
all other monies payable under the Initial Receivables conveyed pursuant to this
Section 2.01, to give and receive notices and other communications, to make
waivers or other agreements, to exercise all rights, powers and options, to
bring Proceedings in the name of the Seller or otherwise and generally to do and
receive anything that the Seller is or may be entitled to do or receive under or
with respect to the assets conveyed pursuant to this Section 2.01. For purposes
of such grant, this Agreement shall constitute a security agreement under the
UCC.

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        SECTION 2.02            Conveyance of Subsequent Receivables. (a)
Subject to satisfaction of the conditions set forth in Section 2.02(b) below, in
consideration of the Issuer's delivery on the related Subsequent Transfer Date
to or upon the order of the Seller of the amount described in Section 8.11(a) of
the Indenture to be delivered to the Seller, the Seller does hereby agree to
sell, transfer, assign, set over and otherwise convey to the Issuer, without
recourse (except as provided in Section 2.06, pursuant to an assignment in
substantially the form of Exhibit C (a "Subsequent Transfer PSA Assignment"),
all right, title and interest of the Seller in, to and under:

                        (i)     the Retail Notes identified on the Schedule of
                Retail Notes to such Subsequent Transfer PSA Assignment
                delivered to the Issuer and the Related Retail Note Assets with
                respect to those Retail Notes;

                        (ii)    the beneficial interest in the Series 2003-A
                Portfolio Assets, including the Retail Leases identified on the
                Schedule of Retail Leases to such Subsequent Transfer PSA
                Assignment delivered to the Issuer and the Related Titling Trust
                Assets with respect to those Retail Leases;

                        (iii)   the rights, but not the obligations, of NFC
                under the Lease Purchase Agreement and the Subsequent LPA
                Assignment with respect to the Retail Leases included in those
                Subsequent Receivables; and

                        (iv)    the rights, but not the obligations, of the
                Seller under the Purchase Agreement and the Subsequent Transfer
                PA Assignment pursuant to Section 2.01 of the Purchase Agreement
                with respect to those Subsequent Receivables.

It is the intention of the Seller that each transfer and assignment contemplated
by this Section 2.02 shall constitute a sale of the related Subsequent
Receivables from the Seller to the Issuer and the beneficial interest in and
title to the assets conveyed pursuant to the Subsequent Transfer PSA Assignment
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. Within
two Business Days after each Subsequent Transfer Date, the Seller shall cause to
be deposited into the Collection Account all collections (from whatever source)
on or with respect to the assets conveyed pursuant to the related Subsequent
Transfer PSA Assignment received by the Seller pursuant to Section 5.07 of the
Purchase Agreement. The Seller intends to treat each such transfer and
assignment as a sale for accounting and tax purposes. Notwithstanding the
foregoing, in the event a court of competent jurisdiction determines that any
such transfer and assignment did not constitute such a sale or that such
beneficial interest is a part of the Seller's estate, then (i) the Seller shall
be deemed to have granted to the Issuer a first priority perfected security
interest in all of the Seller's right, title and interest in, to and under the
assets conveyed pursuant to the related Subsequent Transfer PSA Assignment, and
the Seller hereby grants such security interest and (ii) the assets conveyed
pursuant to such Subsequent Transfer PSA Assignment shall be deemed to include
all rights, powers and options (but none of the obligations, if any) of the
Seller under any agreement or instrument included in the assets conveyed
pursuant to such Subsequent Transfer PSA Assignment, including the immediate and
continuing right to claim for, collect, receive and give receipt for lease
payments and principal and interest payments in respect of the Subsequent

                                      - 3 -

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Receivables included in the assets conveyed pursuant to such Subsequent Transfer
PSA Assignment and all other monies payable under the Subsequent Receivables
conveyed pursuant to such Subsequent Transfer PSA Assignment, to give and
receive notices and other communications, to make waivers or other agreements,
to exercise all rights, powers and options, to bring Proceedings in the name of
the Seller or otherwise and generally to do and receive anything that the Seller
is or may be entitled to do or receive under or with respect to the assets
conveyed pursuant to such Subsequent Transfer PSA Assignment. For purposes of
such grant, each such Subsequent Transfer PSA Assignment, together with this
Agreement, shall constitute a security agreement under the UCC.

                (b)     The Seller shall transfer to the Issuer Subsequent
Receivables and the other property and rights related thereto described in
Section 2.02(a) above only upon the satisfaction of each of the following
conditions precedent on or prior to the related Subsequent Transfer Date:

                        (i)     the Funding Period shall not have terminated;

                        (ii)    each of the representations and warranties made
        by the Seller pursuant to Section 2.05 with respect to such Subsequent
        Receivables shall be true and correct as of the related Subsequent
        Transfer Date with the same effect as if then made, and the Seller shall
        have performed all obligations to be performed by it hereunder on or
        prior to such Subsequent Transfer Date;

                        (iii)   the Seller shall have delivered to the Owner
        Trustee, the Indenture Trustee and the Rating Agencies a duly executed
        Subsequent Transfer PSA Assignment, including the Schedule of Retail
        Notes and the Schedule of Retail Leases included in such Subsequent
        Receivables (which schedules shall be deemed to supplement the existing
        Composite Schedule of Receivables in effect at such time);

                        (iv)    the applicable Reserve Account Subsequent
        Transfer Deposit for such Subsequent Transfer Date shall have been
        deposited in the Reserve Account pursuant to Section 8.10(a) of the
        Indenture;

                        (v)     the Seller shall, at its own expense, on or
        prior to each Subsequent Transfer Date indicate in its computer files
        that the Subsequent Receivables conveyed on such date have been sold to
        the Issuer pursuant to this Agreement and the related Subsequent
        Transfer PSA Assignment;

                        (vi)    the Seller shall have taken any action required
        to maintain the first priority perfected ownership interest of the
        Issuer in the Owner Trust Estate and the first priority perfected
        security interest of the Indenture Trustee in the Collateral;

                        (vii)   The Receivables in the Trust (after giving
        effect to the conveyance of the Subsequent Receivables to the Trust on
        such Subsequent Transfer Date) shall meet the following criteria: (A)
        the weighted average Annual Percentage Rate of the Receivables in the
        Trust shall not be less than 7.25%, (B) the weighted average remaining
        maturity of the Receivables in the Trust shall not be greater than 53

                                      - 4 -

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        months, (C) the aggregate Receivable Balance of all Receivables owing
        from a single Obligor shall not be more than 2.00% of the aggregate
        Receivable Balance of all Receivables in the Trust, and (D) the
        Aggregate Starting Receivable Balance of all Retail Leases in the Trust
        shall not exceed 10.00% of the Aggregate Starting Receivable Balance;

                        (viii)  the Seller shall have delivered to the Indenture
        Trustee and the Owner Trustee an Officers' Certificate confirming the
        satisfaction of the conditions specified in this Section 2.02(b);

                        (ix)    the Seller shall have delivered to the Trust,
        the Indenture Trustee and the Rating Agencies an Opinion of Counsel with
        respect to the transfer of such Subsequent Receivables substantially in
        the form of the Opinion of Counsel delivered to the Rating Agencies on
        the Closing Date;

                        (x)     the Seller shall have delivered to the Owner
        Trustee and the Indenture Trustee written confirmation from an
        independent public accounting firm that, as of the applicable Subsequent
        Cutoff Date, such Subsequent Receivables satisfied the eligibility
        criteria described in Sections 3.01(a)(iv), (a)(v), (s), (t), (w), and
        (x) of the Purchase Agreement; and

                        (xi)    Each Retail Lease has been allocated to the
        Series 2003-A Portfolio Interest in accordance with the terms of the
        Titling Trust Documents.

                (c)     The Seller covenants to transfer to the Issuer pursuant
to Section 2.02(a) before the termination of the Funding Period, Subsequent
Receivables with an aggregate Starting Receivable Balance equal to the amount of
the Pre-Funding Account Initial Deposit. If on the Distribution Date on which
the Funding Period ends (or, if the Funding Period does not end on a
Distribution Date, the first Distribution Date following the end of the Funding
Period) the Pre-Funded Amount is equal to or greater than $100,000, the Seller
shall be obligated to pay to the Issuer on the Transfer Date immediately
preceding such Distribution Date an amount equal to the Noteholders' Prepayment
Premium with respect to each class of Notes or such lesser amount that the
Seller actually receives from NFC under Section 2.04 of the Purchase Agreement
in respect of NFC's breach thereof; provided, however, that the foregoing shall
be the sole remedy of the Issuer, the Owner Trustee, the Indenture Trustee and
Financial Parties with respect to a failure of the Seller to comply with this
covenant.

        SECTION 2.03            Custody of Receivable Files. In connection with
the sale, transfer and assignment of Receivables to the Seller from NFC pursuant
to the Purchase Agreement, the Seller, simultaneously with the execution and
delivery of this Agreement, shall enter into the Servicing Agreement with NFC,
pursuant to which the Seller shall revocably appoint NFC as the Custodian, and
NFC shall accept such appointment, to act as the agent of the Seller as
Custodian of the following documents or instruments which shall be
constructively delivered to the Trust, as of the Closing Date with respect to
each Initial Receivable, and as of the related Subsequent Transfer Date with
respect to each Subsequent Receivable:

                                      - 5 -

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                (a)     the fully executed original of the Retail Note or Retail
Lease for such Receivable;

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

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

                (d)     if such Receivable is a Retail Note, where permitted by
law, the original certificate of title (when received) and otherwise such
documents, if any, that NFC keeps on file in accordance with its customary
procedures indicating that the Financed Vehicle is owned by the Obligor and
subject to the interest of NFC as first lienholder or secured party;

                (e)     if such Receivable is a Retail Lease, the Certificate of
Title and such other documents that NFC is required to maintain pursuant to
Section 3.6 of the Titling Trust Servicing Agreement; and

                (f)     any and all other documents that NFC keeps on file in
accordance with its customary procedures relating to the individual Receivable,
Obligor or Financed Vehicle.

        SECTION 2.04            Acceptance by Issuer; Limitation on Transfer of
International Purchase Obligations. The Issuer does hereby accept all
consideration conveyed by the Seller pursuant to Sections 2.01 and 2.02, and
declares that the Issuer shall hold such consideration upon the trust set forth
in the Trust Agreement for the benefit of Certificateholders, subject to the
terms and conditions of the Trust Agreement, the Indenture and this Agreement;
provided, however, that the Issuer acknowledges and agrees that (a) the rights
pursuant to the International Purchase Obligations are personal to NFC and only
the proceeds of such rights have been assigned to the Issuer hereunder and, with
respect to the Retail Notes and Related Retail Note Assets, by NFC to NFRRC
under the Purchase Agreement and from NFRRC to the Issuer hereunder and with
respect to Retail Leases and Related Titling Trust Assets, by Harco Leasing to
NFC under the Lease Purchase Agreement, from NFC to NFRRC under the Purchase
Agreement and from NFRRC to the Issuer hereunder, (b) neither the Issuer nor the
Indenture Trustee is or is intended to be a third-party beneficiary of such
rights, and (c) accordingly such rights are not exercisable by, enforceable by
or for the benefit of, or preserved for the benefit of, the Issuer or the
Indenture Trustee. The Issuer hereby agrees and accepts the appointment and
authorization of NFC as Servicer pursuant to the Servicing Agreement. The
parties agree that this Agreement (including each PSA Assignment), the Servicing
Agreement, the Indenture and the Trust Agreement constitute the Further Transfer
and Servicing Agreements.

        SECTION 2.05            Representations and Warranties as to the
Receivables. Pursuant to Sections 2.01(d) and 2.02(a)(iv), the Seller assigns to
the Issuer all of its right, title and interest in, to and under the Purchase
Agreement. Such assigned right, title and interest includes the representations
and warranties of NFC made to the Seller pursuant to Section 3.01 of the
Purchase Agreement. The Seller hereby represents and warrants to the Issuer that
the Seller has taken no action which would cause such representations and
warranties to be false in any material respect as of the Closing Date, in the
case of the Initial Receivables, and as of the

                                      - 6 -

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related Subsequent Transfer Date, in the case of Subsequent Receivables. The
Seller further acknowledges that the Issuer is relying on the representations
and warranties of the Seller under this Agreement and of NFC under the Purchase
Agreement in accepting the Receivables, the Series 2003-A Portfolio Interest and
the Series 2003-A Portfolio Certificate in trust and executing and delivering
the Securities. The foregoing representation and warranty speaks as of the
Closing Date, in the case of the Initial Receivables, and as of the related
Subsequent Transfer Date, in the case of Subsequent Receivables, but shall
survive the sale, transfer and assignment of the Receivables, the Series 2003-A
Portfolio Interest and the Series 2003-A Portfolio Certificate to the Issuer and
the pledge thereof to the Indenture Trustee pursuant to the Indenture.

        SECTION 2.06            Repurchase of Receivables Upon Breach of
Warranty. Upon discovery by the Seller, the Servicer or either Trustee of a
breach of any of the representations and warranties in Section 3.01 of the
Purchase Agreement (and, with respect to Section 3.01(j) of the Purchase
Agreement, irrespective of any limitation regarding knowledge of NFC) or in
Section 2.05 or Section 3.01 of this Agreement that materially and adversely
affects the interests of the Financial Parties in any Receivable, the party
discovering such breach shall give prompt written notice thereof to the others.
As of the second Accounting Date following its discovery or its receipt of
notice of breach (or, at the Seller's election, the first Accounting Date
following such discovery or notice), unless such breach shall have been cured in
all material respects, in the event of a breach of the representations and
warranties made by the Seller in Section 2.05 or Section 3.01, the Seller shall
repurchase such Receivable from the Issuer on the related Distribution Date.
Neither the Owner Trustee nor the Issuer shall have any affirmative duty to
conduct any investigation as to the occurrence of any event requiring the
repurchase of any Receivable pursuant to this Section 2.06.

                The repurchase price to be paid by any Warranty Purchaser shall
be an amount equal to the Warranty Payment. It is understood and agreed that the
obligation of the Warranty Purchaser to repurchase any Receivable as to which a
breach has occurred and is continuing shall, if such repurchase obligations are
fulfilled, constitute the sole remedy against the Seller, the Servicer or NFC
for such breach available to any Interested Party.

                                   ARTICLE III
                  REPRESENTATIONS AND WARRANTIES OF THE SELLER

        SECTION 3.01            Representations and Warranties of the Seller.
The Seller makes the following representations and warranties as to itself on
which the Issuer is relying in acquiring the Receivables, the Series 2003-A
Portfolio Interest and the Series 2003-A Portfolio Certificate hereunder and
issuing the Securities under the other Further Transfer and Servicing
Agreements. The following representations and warranties speak as of the Closing
Date in the case of the Initial Receivables and as of the applicable Subsequent
Transfer Date in the case of the Subsequent Receivables, but in each case shall
survive the sale, transfer and assignment of such Receivables to the Issuer and
the pledge thereof to the Indenture Trustee pursuant to the Indenture.

                (a)     Organization and Good Standing. The Seller has been duly
organized and is validly existing as a corporation in good standing under the
laws of the State of Delaware, with

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<PAGE>

power and authority to own its properties and to conduct its business as such
properties are presently owned and such business is presently conducted, and had
at all relevant times, and now has, power, authority and legal right to acquire
and own the Receivables;

                (b)     Due Qualification. The Seller is duly qualified to do
business as a foreign corporation in good standing, and has obtained all
necessary licenses and approvals in all jurisdictions in which the ownership or
lease of property or the conduct of its business requires or shall require such
qualification;

                (c)     Power and Authority. The Seller has the power and
authority to execute and deliver the Further Transfer and Servicing Agreements
to which it is a party (as used in this Section 3.01, the "applicable Further
Transfer and Servicing Agreements") and to carry out the respective terms of
such agreements and has the power and authority to sell and assign the property
to be sold and assigned to and deposited with the Issuer as part of the Owner
Trust Estate and has duly authorized such sale and assignment to the Issuer by
all necessary corporate action; and the execution, delivery and performance by
the Seller of the applicable Further Transfer and Servicing Agreements have been
duly authorized by the Seller by all necessary corporate action;

                (d)     Binding Obligations. The applicable Further Transfer and
Servicing Agreements, when duly executed and delivered, shall constitute a
legal, valid and binding obligation of the Seller enforceable against the Seller
in accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization or other similar laws
affecting the enforcement of creditors' rights in general and by general
principles of equity, regardless of whether such enforceability is considered in
a proceeding in equity or at law;

                (e)     No Violation. The consummation by the Seller of the
transactions contemplated by the applicable Further Transfer and Servicing
Agreements and the fulfillment of the terms of such agreements by the Seller
shall not conflict with, result in any breach of any of the terms and provisions
of or constitute (with or without notice or lapse of time) a default under, the
certificate of incorporation or by-laws of the Seller, or any indenture,
agreement or other instrument to which the Seller is a party or by which it is
bound, or result in the creation or imposition of any Lien upon any of its
properties pursuant to the terms of any such indenture, agreement or other
instrument, other than the applicable Further Transfer and Servicing Agreements,
or violate any law or, to 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 any of its properties;

                (f)     No Proceedings. There are no proceedings or, to the
Seller's knowledge, investigations pending or, to the Seller's knowledge,
threatened before any court, regulatory body, administrative agency or other
tribunal or governmental instrumentality having jurisdiction over the Seller or
its properties (i) asserting the invalidity of the applicable Further Transfer
and Servicing Agreements, any Securities issued pursuant thereto and the
Administration Agreement, (ii) seeking to prevent the issuance of such
Securities or the

                                      - 8 -

<PAGE>

consummation of any of the transactions contemplated by the applicable Further
Transfer and Servicing Agreements or the Administration Agreement, or (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, such Securities, the applicable Further Transfer and
Servicing Agreements or the Administration Agreement;

                (g)     Good Title. On the date hereof, the Seller has good
title to the Series 2003-A Portfolio Interest and the Series 2003-A Portfolio
Certificate, free and clear of all Liens (other than Permitted Liens). On the
date hereof, upon execution and delivery of this Agreement and the related PSA
Assignment by the Seller, good and valid title to the Series 2003-A Portfolio
Interest and the Series 2003-A Portfolio Certificate will be validly and
effectively conveyed to, and vested in, the Issuer, free and clear of all Liens,
other than Permitted Liens, and the transfer of the Series 2003-A Portfolio
Interest and the Series 2003-A Portfolio Certificate by the Seller to the Issuer
has been perfected. On the date hereof, the Seller has good title to each Retail
Note free and clear of all Liens (other than Permitted Liens and Liens that will
be released as of such transfer). On the date hereof, good and valid title to
each such Retail Note will be validly and effectively conveyed to, and vested
in, the Issuer, free and clear of all Liens, other than Permitted Liens, and the
transfer of such Retail Note by the Seller to the Issuer has been perfected
under the UCC;

                (h)     All Filings Made. All filings (including UCC filings)
necessary in any jurisdiction to give the Issuer a first priority perfected
security or ownership interest in the Purchased Property (to the extent it
constitutes Code Collateral) shall have been made, and the Receivables
constitute Code Collateral; and

                (i)     Valid Sale. This Agreement and the Initial PSA
Assignment constitute, and each Subsequent Transfer PSA Assignment when duly
executed and delivered shall constitute, a valid sale, transfer and assignment
of the Purchased Property transferred thereby, enforceable against creditors of
and purchasers from the Seller.

        SECTION 3.02            Liability of Seller. The Seller shall be liable
in accordance with this Agreement only to the extent of the obligations in this
Agreement specifically undertaken by the Seller.

        SECTION 3.03            Merger or Consolidation of, or Assumption of the
Obligations of, Seller; Amendment of Certificate of Incorporation.

                (a)     Any corporation (i) into which the Seller may be merged
or consolidated, (ii) resulting from any merger or consolidation to which the
Seller shall be a party, (iii) succeeding to the business of the Seller, or (iv)
more than 50% of the voting stock of which is owned directly or indirectly by
NIC, which corporation 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 under this Agreement without the execution or
filing of any document or any further act on the part of any of the parties to
this Agreement. The Seller shall provide 10 days' prior notice of any merger,
consolidation or succession pursuant to this Section 3.03 to the Rating
Agencies.

                                      - 9 -

<PAGE>

                (b)     The Seller hereby agrees that during the term of this
Agreement it shall not amend Articles Third, Fourth, Fifth, Twelfth or
Fourteenth of its Restated Certificate of Incorporation without obtaining the
prior written consent of the Rating Agencies or without obtaining the prior
written consent of a majority of the Outstanding Amount of the Controlling Class
as of the close of the preceding Distribution Date and the prior written consent
of the Holders of Certificates evidencing not less than a majority of the
ownership interest in the Trust as of the close of the preceding Distribution
Date.

        SECTION 3.04            Limitation on Liability of Seller and Others.
The Seller and any director or officer or 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 under this Agreement. The Seller shall not be under any obligation to
appear in, prosecute or defend any legal action that is not incidental to its
obligations as Seller of the Receivables under this Agreement and that in its
opinion may involve it in any expense or liability.

        SECTION 3.05            Seller May Own Securities. Each of the Seller
and any Person controlling, controlled by or under common control with the
Seller may in its individual or any other capacity become the owner or pledgee
of Securities with the same rights as it would have if it were not the Seller or
an Affiliate thereof except as otherwise specifically provided herein. Except as
otherwise provided herein, Securities so owned by or pledged to the Seller or
such controlling or commonly controlled Person shall have an equal and
proportionate benefit under the provisions of this Agreement, without
preference, priority or distinction as among all of such Securities.

                                   ARTICLE IV
                                   TERMINATION

        SECTION 4.01            Optional Purchase of All Receivables. On the
last day of any Monthly Period as of which (i) the Aggregate Receivables Balance
is 10% or less of the Aggregate Starting Receivables Balance and (ii) the Class
A-1 Notes, the Class A-2 Notes and the Class A-3 Notes have been paid in full,
the Servicer shall have the option to purchase the assets of the Owner Trust
Estate other than the Designated Accounts and the Certificate Distribution
Account. If the Servicer's long term unsecured debt rating from Moody's is equal
to or higher than Baa3 at the time that it seeks to exercise such option, then
to exercise such option, the Servicer shall deposit in the Collection Account an
amount equal to the aggregate Administrative Purchase Payments for the
Receivables (including Liquidating Receivables), plus the appraised value of any
such other property contained in the Owner Trust Estate (less the Liquidation
Expenses to be incurred in connection with the recovery thereof), such value to
be determined by an appraiser mutually agreed upon by the Servicer and each
Trustee. If the Servicer's long term unsecured debt rating from Moody's is less
than Baa3 at the time that it seeks to exercise such option, then to exercise
such option, the Servicer shall deposit in the Collection Account an amount
equal to the appraised value of the Receivables (including Liquidating
Receivables), plus the appraised value of any such other property contained in
the Owner Trust Estate (less the Liquidation Expenses to be incurred in
connection with the recovery thereof), such values to be determined by an
appraiser mutually agreed upon by the Servicer and

                                     - 10 -

<PAGE>

each Trustee; provided, that such amount (when added to any funds then on
deposit in the Designated Accounts) must be at least equal to the aggregate
Redemption Price of the outstanding Notes to be redeemed with such proceeds for
the Distribution Date related to the Monthly Period in which such option is
exercised. Thereupon, the Servicer shall succeed to all interests in and to the
Owner Trust Estate (other than the Designated Accounts and the Certificate
Distribution Account).

        SECTION 4.02            Termination.

                (a)     Following the satisfaction and discharge of the
Indenture with respect to the Notes, and the payment in full of the principal
and interest on the Notes, the Certificateholders shall succeed to the rights of
the Noteholders hereunder and the Owner Trustee shall succeed to the rights of,
and assume the obligations of, the Indenture Trustee pursuant to this Agreement
(subject to the continuing obligations of the Indenture Trustee set forth in
Section 4.4 of the Indenture).

                (b)     After payment to each Trustee, the Noteholders and the
Servicer of all amounts required to be paid under this Agreement, and the
Indenture, any amounts on deposit in the Reserve Account and the Collection
Account (after all other distributions required to be made from such accounts
have been made) shall be deposited into the Certificate Distribution Account for
distribution to the Certificateholders and any other assets remaining in the
Owner Trust Estate shall be distributed to the Certificate Distribution Account
for distribution to the Certificateholders.

                                    ARTICLE V
                            MISCELLANEOUS PROVISIONS

        SECTION 5.01            Amendment.

                (a)     This Agreement may be amended by the Seller and the
Issuer with the consent of the Indenture Trustee, but without the consent of any
of the Financial Parties, (i) to cure any ambiguity, (ii) to correct or
supplement any provision in this Agreement that may be defective or inconsistent
with any other provision in this Agreement or any other Basic Document, (iii) to
add or supplement any credit enhancement for the benefit of the Noteholders of
any class or the Certificateholders provided that if any such addition shall
affect any class of Noteholders or the Certificateholders differently than any
other class of Noteholders or the Certificateholders, respectively, then such
addition shall not, as evidenced by an Opinion of Counsel, adversely affect in
any material respect the interests of any class of Noteholders or the
Certificateholders, (iv) add to the covenants, restrictions or obligations of
the Seller or either Trustee or (v) add, change or eliminate any other provision
of this Agreement in any manner that shall not, as evidenced by an Opinion of
Counsel, adversely affect in any material respect the interests of the Financial
Parties.

                (b)     This Agreement may also be amended from time to time by
the Seller and the Issuer with the consent of the Indenture Trustee, the consent
of Noteholders whose Notes evidence not less than a majority of the Outstanding
Amount of the Controlling Class as of the

                                     - 11 -

<PAGE>

close of the preceding Distribution Date and the consent of Certificateholders
whose Certificates evidence not less than a majority of the ownership interest
in the Trust as of the close of the preceding Distribution Date (which consents,
whether given pursuant to this Section 5.01 or pursuant to any other provision
of this Agreement, shall be conclusive and binding on such Person and on all
future holders of such Notes or Certificates and of any Notes or Certificates
issued upon the transfer thereof or in exchange thereof or in lieu thereof
whether or not notation of such consent is made upon the Notes or Certificates)
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Agreement, or of modifying in any
manner the rights of the Financial Parties; provided, however, that no such
amendment shall (i)(a) increase or reduce in any manner the amount of, or
accelerate or delay the timing of, collections of payments on Receivables or
distributions that shall be required to be made on any Security, the Interest
Rate for any class of Notes or the Specified Reserve Account Balance or (b)
reduce the aforesaid percentage required to consent to any such amendment,
without the consent of the holders of all Securities then outstanding or (ii)
amend any provision of this Agreement (including Section 5.06) which requires
actions taken under such provision to have the consent of Noteholders whose
Notes evidence greater than a majority of the Outstanding Amount of the
Controlling Class as of the preceding Distribution Date or of the Holders of
Certificates evidencing greater than a majority of the ownership interest in the
Trust as of the preceding Distribution Date, in each case without the consent of
the Indenture Trustee and the numbers of Financial Parties described in such
Section.

                (c)     Prior to the execution of any such amendment or consent,
the Indenture Trustee shall furnish written notification to the Rating Agencies
of the substance of such amendment or consent as provided to the Indenture
Trustee.

                (d)     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, and the Indenture
Trustee shall furnish written notification to each Noteholder of the substance
of such amendment or consent as provided to the Indenture Trustee.

                (e)     It shall not be necessary for the consent of Financial
Parties pursuant to Section 5.01(b) to approve the particular form of any
proposed amendment or consent, but it shall be sufficient if such consent shall
approve the substance thereof. The manner of obtaining such consents (and any
other consents of Financial Parties provided for in this Agreement) and of
evidencing the authorization of the execution thereof by Financial Parties shall
be subject to such reasonable requirements as either Trustee may prescribe,
including the establishment of record dates pursuant to paragraph number 3 of
the Note Depository Agreement.

                (f)     Prior to the execution of any amendment to this
Agreement, each Trustee shall be entitled to receive and rely upon the Opinion
of Counsel referred to in Section 5.02(i) and an Opinion of Counsel stating that
the execution of such amendment is authorized or permitted by this Agreement and
that all conditions precedent to the execution and delivery of such amendment
have been satisfied. Each Trustee may, but shall not be obligated to, enter into
any such amendment which affects such Trustee's own rights, duties or immunities
under this Agreement or otherwise.

                                     - 12 -

<PAGE>

        SECTION 5.02            Protection of Title to Owner Trust Estate.

                (a)     The Seller shall prepare and file such financing
statements and cause to be prepared and filed such continuation and other
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 under this
Agreement in the Receivables, the Series 2003-A Portfolio Interest and the
Series 2003-A Portfolio Certificate and the Indenture Trustee's security
interest in the Receivables, the Series 2003-A Portfolio Interest and the
Portfolio Certificate under the Indenture and hereby authorizes the Issuer to
file such financing statements or continuation statements relating to all or any
part thereof; provided, however, that, with respect to a Retail Lease, the
Seller shall not be obligated to transfer the titles to any Financed Vehicle.
The Seller shall deliver (or cause to be delivered) to the Owner Trustee
file-stamped copies of, or filing receipts for, any document filed as provided
above, as soon as available following such filing.

                (b)     The Seller shall not 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 9-506 of the UCC, unless it
shall have given each Trustee at least 60 days prior written notice thereof.

                (c)     The Seller shall give each Trustee at least 60 days
prior written notice of any change in its jurisdiction of formation and shall
file such financing statements or amendments as may be necessary to continue the
perfection of the Issuer's security interest in the Designated Receivables and
the Related Security. The Seller shall at all times maintain its jurisdiction of
formation within the United States of America.

                (d)     The Seller will cause the Servicer to 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 extensions of any scheduled payments made not less than 45 days prior
thereto, 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 Seller will cause the Servicer to maintain its
computer systems so that, from and after the time of sale under this Agreement
of the Receivables to the Issuer, the Servicer's master computer records
(including any back-up archives) that refer to any Receivable indicate clearly
that the Receivable is owned by the Issuer and has been pledged by the Issuer to
the Indenture Trustee. 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 shall have been paid in full, repurchased by the
Seller, purchased by the Servicer or become a Liquidating Receivable.

                (f)     If at any time the Seller proposes to sell, grant a
security interest in, or otherwise transfer any interest in truck, truck
chassis, bus and trailer receivables to any prospective purchaser, lender or
other transferee, the Seller shall give to such prospective

                                     - 13 -

<PAGE>

purchaser, lender or other transferee computer tapes, records or print-outs
(including any restored from back-up archives) that, if they refer in any manner
whatsoever to any Receivable, indicate clearly that such Receivable has been
sold and is owned by the Issuer and has been pledged by the Issuer to the
Indenture Trustee unless such Receivable has been paid in full, repurchased by
the Seller or purchased by the Servicer.

                (g)     The Seller will cause the Servicer to permit each
Trustee and their respective agents at any time to inspect, audit and make
copies of and abstracts from the Servicer's records regarding any Receivables
then or previously included in the Owner Trust Estate.

                (h)     The Seller will cause the Servicer to furnish to each
Trustee at any time upon request a list of all Receivables then held as part of
the Owner Trust Estate, together with a reconciliation of such list to the
Composite Schedule of Receivables and to each of the Servicer's Certificates
furnished before such request indicating removal of Receivables from the Owner
Trust Estate. Upon request, the Servicer shall furnish a copy of any such list
to the Seller. Each Trustee and the Seller shall hold any such list and the
Composite Schedule of Receivables for examination by interested parties during
normal business hours at their respective offices located at the addresses set
forth in Section 5.03.

                (i)     The Seller will deliver to each Trustee promptly after
the execution and delivery of this Agreement and of each amendment thereto, an
Opinion of Counsel either (a) stating that, in the opinion of such counsel, all
financing statements and continuation statements have been executed and filed
that are necessary fully to preserve and protect the interest of the Issuer and
the Indenture Trustee in the Receivables, the Series 2003-A Portfolio Interest
and the Series 2003-A Portfolio Certificate and reciting the details of such
filings or referring to prior Opinions of Counsel in which such details are
given, or (b) stating that, in the opinion of such counsel, no such action is
necessary to preserve and protect such interest.

                (j)     To the extent required by law, the Seller shall cause
the Notes to be registered with the Securities and Exchange Commission pursuant
to Section 12(b) or Section 12(g) of the Exchange Act within the time periods
specified in such sections.

        SECTION 5.03            Notices. All demands, notices and communications
upon or to the Seller either Trustee or the Rating Agencies under this Agreement
shall be delivered as specified in Appendix B hereto.

        SECTION 5.04            Governing Law. All questions concerning the
construction, validity and interpretation of this Agreement shall be governed by
and construed and enforced in accordance with the internal laws of the State of
Illinois, without giving effect to any choice of law or conflict provision or
rule (whether of the State of Illinois or any other jurisdiction) that would
cause the application of the laws of any jurisdiction other than the State of
Illinois; provided, however, that (i) the duties and immunities of the Owner
Trustee hereunder shall be governed by the laws of the State of Delaware and
(ii) the rights and remedies of the Indenture Trustee shall be governed by the
laws of the State of New York.

                                     - 14 -

<PAGE>

        SECTION 5.05            Severability of Provisions. If any one or more
of the covenants, agreements, provisions or terms of this Agreement shall be for
any reason whatsoever held invalid, then such covenants, agreements, provisions
or terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Securities or
the rights of the holders thereof.

        SECTION 5.06            Assignment. Notwithstanding anything to the
contrary contained in this Agreement, this Agreement may not be assigned by the
Seller without the prior written consent of Noteholders whose Notes evidence not
less than 66% of the Outstanding Amount of the Controlling Class as of the close
of the preceding Distribution Date and of Holders of Certificates evidencing not
less than 66% of the ownership interest in the Trust as of the close of the
preceding Distribution Date. The Seller shall provide notice of any such
assignment to the Rating Agencies.

        SECTION 5.07            Third-Party Beneficiaries. This Agreement shall
inure to the benefit of and be binding upon the parties hereto, the
Securityholders and the Trustees and their respective successors and permitted
assigns. Except as otherwise provided in this Article V, no other Person shall
have any right or obligation hereunder.

        SECTION 5.08            Separate Counterparts. This Agreement may be
executed by the parties hereto in separate counterparts, each of which when so
executed and delivered shall be an original, but all such counterparts shall
together constitute but one and the same instrument.

        SECTION 5.09            Headings and Cross-References. The various
headings in this Agreement are included for convenience only and shall not
affect the meaning or interpretation of any provision of this Agreement.

        SECTION 5.10            Assignment to Indenture Trustee. 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 and (only to the extent expressly
provided therein) the Certificateholders of all right, title and interest of the
Issuer in, to and under the Owner Trust Estate and/or the assignment of any or
all of the Issuer's rights and obligations hereunder to the Indenture Trustee.

        SECTION 5.11            No Petition Covenants; Waiver of Claims.

                (a)     Notwithstanding any prior termination of this Agreement
the Seller shall not, prior to the date which is one year and one day after the
final distribution with respect to the Securities to the Note Distribution
Account or the Certificate Distribution Account, as applicable, 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.

                                     - 15 -

<PAGE>

                (b)     Notwithstanding any prior termination of the Series
2003-A Portfolio Supplement, the Issuer covenants and agrees that it shall not,
prior to the date which is one year and a day after which all obligations under
each Permitted Financing have been paid in full, acquiesce, petition or
otherwise invoke, or join any other Person in acquiescing, petitioning or
otherwise invoking, against the Titling Trust or any Special Purpose Entity, any
proceeding in court or with any governmental authority for the purpose of (i)
commencing or sustaining a case against the Titling Trust or such Special
Purpose Entity under any federal or state bankruptcy, insolvency or similar law,
or (ii) appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of all or any substantial part of the
respective property of the Titling Trust or such Special Purpose Entity, or
(iii) ordering the winding up or liquidation of the affairs of the Titling Trust
or such Special Purpose Entity.

                (c)     Except as otherwise provided in the Titling Trust
Agreement, as may be amended, restated and supplemented from time to time, the
Issuer hereby releases all Claims to the Titling Trust Assets allocated to the
General Interest and to each Portfolio Interest other than the Series 2003-A
Portfolio Interest whether then or thereafter created and, in the event that
such release is not given effect, to fully subordinate all Claims it may be
deemed to have against the Titling Trust Assets allocated to the General
Interest and each Portfolio Interest other than the Series 2003-A Portfolio
Interest whether then or thereafter created.

        SECTION 5.12            Limitation of Liability of the Trustees.

                (a)     Notwithstanding anything contained herein to the
contrary, this Agreement has been acknowledged and accepted by The Bank of New
York not in its individual capacity but solely as Indenture Trustee and in no
event shall The Bank of New York have any liability for the representations,
warranties, covenants, agreements or other obligations of the Issuer hereunder
or in any of the certificates, notices or agreements delivered pursuant hereto,
as to all of which recourse shall be had solely to the assets of the Issuer.

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

                                    * * * * *

                                     - 16 -

<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.

                               NAVISTAR FINANCIAL 2003-A OWNER TRUST

                               By: CHASE MANHATTAN BANK USA,
                               NATIONAL ASSOCIATION, not in its individual
                               capacity but solely as Owner Trustee on behalf of
                               the Trust

                               By:  /s/ John J. Cashin
                                  ---------------------------------------------
                               Name:    John J. Cashin
                               Title:   Vice President

                               NAVISTAR FINANCIAL RETAIL
                               RECEIVABLES CORPORATION, as Seller

                               By:  /s/ Andrew J. Cederoth
                                  ---------------------------------------------
                               Name: Andrew J. Cederoth
                               Title:   Vice President and Treasurer

Acknowledged and Accepted:

THE BANK OF NEW YORK, not in
its individual capacity but solely as
Indenture Trustee

By:  /s/ Erwin Soriano
   --------------------------------
Name: Erwin Soriano
Title: Assistant Vice President

NAVISTAR FINANCIAL CORPORATION,
as Servicer

By:  /s/ Andrew J. Cederoth
   --------------------------------
Name: Andrew J. Cederoth
Title: Vice President and Treasurer

<PAGE>

                                    EXHIBIT A
                 LOCATIONS OF COMPOSITE SCHEDULE OF RECEIVABLES

                    The Composite Schedule of Receivables is
                           on file at the offices of:

1.      The Indenture Trustee

2.      The Owner Trustee

3.      Navistar Financial Corporation

4.      Navistar Financial Retail Receivables Corporation

                                       A-1

<PAGE>

                                    EXHIBIT B

                         FORM OF INITIAL PSA ASSIGNMENT

        For value received, in accordance with the Pooling Agreement, dated as
of June 5, 2003 (the "Pooling Agreement"), between Navistar Financial Retail
Receivables Corporation, a Delaware corporation (the "Seller") and Navistar
Financial 2003-A Owner Trust (the "Issuer"), the Seller does hereby sell,
assign, transfer and otherwise convey unto the Issuer, without recourse, all
right, title and interest of the Seller in, to and under (a) the Retail Notes
identified on the Schedule of Retail Notes attached hereto having an aggregate
Starting Receivable Balance of $______ and the Related Retail Note Assets with
respect to those Retail Notes; (b) the Series 2003-A Portfolio Interest, the
Series 2003-A Portfolio Certificate and the beneficial interest in the Series
2003-A Portfolio Assets, including the Retail Leases identified on the Schedule
of Retail Leases attached hereto having an aggregate Starting Receivable Balance
of $______ and the Related Titling Trust Assets with respect to those Retail
Leases; (c) the rights, but not the obligations, of NFC under the Lease Purchase
Agreement with respect to the Retail Leases included in the Initial Receivables;
and (d) the Seller's rights, but not its obligations, under the Purchase
Agreement and the Initial PA Assignment pursuant to Section 2.01 of the Purchase
Agreement with respect to the Initial Receivables.

        The foregoing sale does not constitute and is not intended to result in
any assumption by the Issuer of any obligation of the undersigned to the
Obligors, Dealers, insurers or any other Person in connection with the Initial
Receivables, the agreements with Dealers, any Insurance Policies or any
agreement or instrument relating to any of them.

        This Initial PSA Assignment is made pursuant to and upon the
representations, warranties and agreements on the part of the undersigned
contained in the Pooling Agreement and is to be governed by the Pooling
Agreement.

        Capitalized terms used herein and not otherwise defined shall have the
meaning assigned to them in the Pooling Agreement.

                                    * * * * *

                                       B-1

<PAGE>

                IN WITNESS WHEREOF, the undersigned has caused this Initial PSA
Assignment to be duly executed as of June 5, 2003.

                               NAVISTAR FINANCIAL RETAIL
                                RECEIVABLES CORPORATION

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

                                       B-2

<PAGE>

                                    EXHIBIT C

                   FORM OF SUBSEQUENT TRANSFER PSA ASSIGNMENT

        For value received, in accordance with the Pooling Agreement, dated as
of June 5, 2003 (the "Pooling Agreement"), between Navistar Financial Retail
Receivables Corporation, a Delaware corporation (the "Seller"), and Navistar
Financial 2003-A Owner Trust (the "Issuer"), the Seller does hereby sell,
assign, transfer and otherwise convey unto the Issuer, without recourse, all
right, title and interest of the Seller in, to and under (a) the Retail Notes
identified on the Schedule of Retail Notes attached hereto (which shall
supplement the Composite Schedule of Receivables) having an aggregate Starting
Receivable Balance of $______ and the Related Retail Note Assets with respect to
those Retail Notes; (b) the beneficial interest in the Series 2003-A Portfolio
Assets, including the Retail Leases identified on the Schedule of Retail Leases
attached hereto (which shall supplement the Composite Schedule of Receivables)
having an aggregate Starting Receivable Balance of $______ and the Related
Titling Trust Assets with respect to those Retail Leases; (c) the rights, but
not the obligations, of NFC under the Lease Purchase Agreement with respect to
the Retail Leases included in those Subsequent Receivables; and (d) the Seller's
rights, but not its obligations, under the Purchase Agreement and the Subsequent
Transfer PA Assignment pursuant to Section 2.01 of the Purchase Agreement with
respect to those Subsequent Receivables.

        The foregoing sale does not constitute and is not intended to result in
any assumption by the Issuer of any obligation of the undersigned to the
Obligors, Dealers, insurers or any other Person in connection with the
Subsequent Receivables assigned hereby, the agreements with Dealers, any
Insurance Policies or any agreement or instrument relating to any of them.

        This Subsequent Transfer PSA Assignment is made pursuant to and upon the
representations, warranties and agreements on the part of the undersigned
contained in the Pooling Agreement and is to be governed by the Pooling
Agreement.

        Capitalized terms used herein and not otherwise defined shall have the
meaning assigned to them in the Pooling Agreement.

                                    * * * * *

                                       C-1

<PAGE>

                IN WITNESS WHEREOF, the undersigned has caused this Subsequent
Transfer PSA Assignment to be duly executed as of __________________, 200_.

                               NAVISTAR FINANCIAL RETAIL RECEIVABLES CORPORATION

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

                                       C-2

<PAGE>

                                   APPENDIX A

                              PART I - DEFINITIONS

All terms used in this Appendix shall have the defined meanings set forth in
this Part I when used in the Basic Documents, unless otherwise defined therein.

        Accountants' Report: As defined in Section 3.02 of the Servicing
Agreement.

        Accounting Date: With respect to a Distribution Date, the last day of
the related Monthly Period, or, with respect to any initial Distribution Date
that occurs in the same calendar month as the Closing Date, at the close of
business on the Closing Date.

        Act: An Act as specified in Section 11.3(a) of the Indenture.

        Actual Payment: With respect to a Distribution Date and to a Receivable,
all payments received by the Servicer from or for the account of the Obligor
during the related Monthly Period (and, in the case of the first Distribution
Date occurring after the date such Receivable is transferred to the Trust, all
payments received by the Servicer from or for the account of the Obligor on or
after the applicable Cutoff Date) except for any Overdue Payments or
Supplemental Servicing Fees.

        Administration Agreement: That certain Administration Agreement, dated
as of the Closing Date among NFC, as Administrator, the Trust and the Indenture
Trustee, as amended, modified and supplemented from time to time.

        Administrative Purchase Payment: With respect to a Distribution Date and
to an Administrative Receivable purchased as of the related Accounting Date (a)
that is a Retail Note, a release of all claims for reimbursement of Monthly
Advances made on such Administrative Receivable plus a payment equal to the sum
of (i) the sum of the Scheduled Payments on such Administrative Receivable due
after the Accounting Date, (ii) the amount of any reimbursements made pursuant
to the last sentence of Section 2.14 of the Servicing Agreement with respect to
such Administrative Receivable, (iii) all past due Scheduled Payments with
respect to which a Monthly Advance has not been made minus (iv) the Rebate minus
(v) any Liquidation Proceeds with respect to such Administrative Receivable to
the extent applied on or prior to the Accounting Date that are not reflected in
items (i) through (iii) and (b) that is a Retail Lease, a release of all claims
for reimbursement of Monthly Advances made on such Administrative Receivable
plus a payment equal to the sum of (i) the sum of the Scheduled Payments on such
Administrative Receivable due after the Accounting Date, including the amount of
any TRAC Payment or the Obligor's purchase option, (ii) the amount of any
reimbursements made pursuant to the last sentence of Section 2.14 of the
Servicing Agreement with respect to such Receivable, and (iii) all past due
Scheduled Payments with respect to which a Monthly Advance has not been made
minus (iv) any Unearned Income minus (v) any Liquidation Proceeds with respect
to such Administrative Receivable to the extent applied on or prior to the
Accounting Date that are not reflected in items (i) through (iii).

                                     App.A-1

<PAGE>

        Administrative Receivable: As defined in Section 2.08 of the Servicing
Agreement.

        Administrator: NFC or any successor Administrator under the
Administration Agreement.

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

        Agency Office: The office of the Issuer maintained pursuant to Section
3.2 of the Indenture.

        Aggregate Losses: With respect to any calendar month, the sum of (i) the
aggregate of the Receivable Balances of all Receivables newly designated during
such calendar month as Liquidating Receivables, plus (ii) the aggregate
principal portion of Scheduled Payments due but not received with respect to all
such Receivables prior to the date any such Receivable was designated a
Liquidating Receivable minus (iii) Liquidation Proceeds collected during such
calendar month with respect to all Liquidating Receivables.

        Aggregate Class A Noteholders' Interest Distributable Amount: With
respect to any Distribution Date, the sum of the Class A Noteholders' Interest
Distributable Amounts for all classes of Class A Notes and the Class A
Noteholders' Interest Carryover Shortfall as of the preceding Distribution Date.

        Aggregate Note Principal Balance: With respect to the close of a
Distribution Date, the sum of the Note Principal Balances for all classes of
Notes.

        Aggregate Receivables Balance: As of any date, the sum of the
Receivables Balances of all outstanding Receivables (other than Liquidating
Receivables).

        Aggregate Starting Receivables Balance: As of any date of determination,
the aggregate of the Starting Receivable Balances of the Initial Receivables as
of the Initial Cutoff Date, which is $326,316,883.05 plus the aggregate of the
Starting Receivable Balances (as of the related Subsequent Cutoff Date) for all
Subsequent Receivables sold to the Issuer on or prior to such date of
determination.

        Annual Percentage Rate or APR: In the case of Retail Notes other than a
Temporary Interest Free Receivable, the annual percentage rate specified in the
Contract related to such Retail Note and, in the case of Retail Leases or
Temporary Interest Free Receivables, the implicit interest rate in the Contract
related to such Retail Lease or Retail Note calculated as an annual percentage
rate on a constant yield to maturity basis.

                                     App.A-2

<PAGE>

        Applicable Trustee: So long as the Aggregate Note Principal Balance is
greater than zero and the Indenture has not been discharged in accordance with
its terms, the Indenture Trustee, and thereafter, the Owner Trustee.

        Assignment: Any LPA Assignment, PA Assignment or PSA Assignment.

        Authenticating Agent. JPMorgan Chase Bank or any successor appointed by
the Owner Trustee.

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

        Available Purchase Amount: As of any Subsequent Transfer Date, the
excess, if any, of $500,000,000.00 over the Aggregate Starting Receivables
Balance on (and before giving effect to any transfers of Receivables on) such
Subsequent Transfer Date.

        Backup Servicer: As defined in Section 6.06(a) of the Servicing
Agreement.

        Backup Servicer Account: As defined in Section 6.06(b) of the Servicing
Agreement.

        Basic Documents: The Trust Agreement, the Certificate of Trust, the
Purchase Agreement, each PA Assignment, the Pooling Agreement, each PSA
Assignment, the Administration Agreement, the Note Depository Agreement, the
Indenture (including any supplements thereto), the Servicing Agreement, the
Lease Purchase Agreement, each LPA Assignment, the Titling Trust Documents, each
Schedule of Retail Notes and Schedule of Retail Loans and the other documents
and certificates delivered in connection with each of the foregoing from time to
time.

        Basic Servicing Fee: As defined in Section 2.09 of the Servicing
Agreement.

        Basic Servicing Fee Rate: As defined in Section 2.09 of the Servicing
Agreement.

        Benefit Plan: Any one of (a) an employee benefit plan (as described in
Section 3(3) of ERISA) that is subject to the provisions of Title I of ERISA,
(b) a plan described in Section 4975(e)(1) of the Code or (c) any entity whose
underlying assets include plan assets by reason of a plan's investment in such
entity.

                                     App.A-3

<PAGE>

        Book-Entry Note: Notes in which ownership and transfers shall be made
through book entries by a Clearing Agency as described in Section 2.10 of the
Indenture.

        Business Day: Any day other than a Saturday, a Sunday or any other day
on which banking institutions in New York, New York or Chicago, Illinois are
authorized or required by law to close.

        Certificate: Any one of the certificates executed by the Issuer and
authenticated by or on behalf of the Owner Trustee in substantially the form set
forth in Exhibit A to the Trust Agreement.

        Certificate Distribution Account: The account designated as such,
established and maintained pursuant to Section 5.1(a) of the Trust Agreement.

        Certificate of Title: With respect to a Financed Vehicle, the
certificate of title or other evidence of ownership of such Financed Vehicle
issued by a registrar of titles in the jurisdiction in which such Financed
Vehicle is registered.

        Certificate of Trust: The certificate of trust of the Issuer
substantially in the form of Exhibit B to the Trust Agreement filed for the
Trust pursuant to Section 3810(a) of the Statutory Trust Statute.

        Certificate Register: The register of Certificates specified in Section
3.4 of the Trust Agreement.

        Certificate Registrar: The registrar at any time of the Certificate
Register, appointed pursuant to Section 3.4(a) of the Trust Agreement.

        Certificated Security: Shall have, as of any date, the meaning given to
such term under the applicable UCC in effect on such date.

        Certificateholder: A Person in whose name a Certificate is registered
pursuant to the terms of the Trust Agreement.

        Claim: As defined in the Titling Trust Agreement.

        Class A Noteholders' Interest Carryover Shortfall: As of the close of
any Distribution Date, the excess of the Aggregate Class A Noteholders' Interest
Distributable Amount for such Distribution Date over the amount that was
actually deposited in the Note Distribution Account on the day preceding such
current Distribution Date in respect of interest on the Class A Notes.

        Class A Noteholders' Interest Distributable Amount: (a) With respect to
the Class A-1 Notes and any Distribution Date, the product of (1) the
outstanding principal balance of the Class A-1 Notes on the preceding
Distribution Date after giving effect to all payments of principal in respect of
the Class A-1 Notes on such preceding Distribution Date (or, in the case of the
first Distribution Date, the outstanding principal balance on the Closing Date)
and (2) the product of the Interest Rate for the Class A-1 Notes on such
Distribution Date and a fraction, the numerator

                                     App.A-4

<PAGE>

of which is the actual number of days from the most recent Distribution Date on
which interest has been paid (or the Closing Date, in the case of the initial
period) to but excluding the current Distribution Date, and the denominator of
which is 360, and (b) with respect to the Class A-2 Notes, the Class A-3 Notes
and the Class A-4 Notes and any Distribution Date, the product of (1) the
outstanding principal balance of such class of Notes on the preceding
Distribution Date after giving effect to all payments of principal in respect of
such class of Notes on such preceding Distribution Date (or, in the case of the
first Distribution Date, the outstanding principal balance on the Closing Date)
and (2) the product of the Interest Rate for such class of Notes and a fraction,
the numerator of which is 30 (or, in the case of the first Distribution Date,
the number of days from the Closing Date to but excluding June 15, 2003), and
the denominator of which is 360.

        Class A Notes: Collectively, the Class A-1 Notes, Class A-2 Notes, Class
A-3 Notes and Class A-4 Notes.

        Class A-1 Notes: The Class A-1 1.25% Asset Backed Notes in the aggregate
principal amount of $85,000,000 issued pursuant to the Indenture.

        Class A-2 Notes: The Class A-2 1.31% Asset Backed Notes in the aggregate
principal amount of $175,000,000 issued pursuant to the Indenture.

        Class A-3 Notes: The Class A-3 1.73% Asset Backed Notes in the aggregate
principal amount of $113,000,000 issued pursuant to the Indenture.

        Class A-4 Notes: The Class A-4 2.24% Asset Backed Notes in the aggregate
principal amount of $108,250,000 issued pursuant to the Indenture.

        Class B Notes: The Class B 3.08% Asset Backed Notes in the aggregate
principal amount of $18,750,000 issued pursuant to the Indenture.

        Class B Noteholders' Interest Carryover Shortfall: As of the close of
any Distribution Date, the excess of (i) the Class B Noteholders' Interest
Distributable Amount for such Distribution Date over (ii) the amount that was
actually deposited in the Note Distribution Account on the day preceding such
current Distribution Date in respect of interest on the Class B Notes.

        Class B Noteholders' Interest Distributable Amount: With respect to any
Distribution Date, the sum of (i) the Class B Noteholders' Monthly Interest
Distributable Amount for such Distribution Date and (ii) the Class B
Noteholders' Interest Carryover Shortfall as of the preceding Distribution Date.

        Class B Noteholders' Monthly Interest Distributable Amount: With respect
to any Distribution Date, the product of (i) the outstanding principal balance
of the Class B Notes on the preceding Distribution Date after giving effect to
all payments of principal in respect of the Class B Notes on such preceding
Distribution Date (or, in the case of the first Distribution Date, the
outstanding principal balance on the Closing Date) and (ii) the product of the
Interest Rate for the Class B Notes and a fraction, the numerator of which is 30
(or, in the case of the first

                                     App.A-5

<PAGE>

Distribution Date, the number of days from the Closing Date to but excluding
June 15, 2003) and the denominator of which is 360.

        Clearing Agency: An organization registered as a "clearing agency"
pursuant to Section 17A of the Exchange Act. The Clearing Agency shall at all
times be a "clearing corporation" as defined in Section 8-102(3) of the New York
UCC.

        Clearing Agency Participant: A securities broker, dealer, bank, trust
company, clearing corporation or 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: As defined in Section 2.03 of the Purchase Agreement.

        Closing Date: June 5, 2003.

        Code: The Internal Revenue Code of 1986, as amended, and Treasury
Regulations promulgated thereunder.

        Code Collateral: Any property a security interest in which may be
perfected by filing under the applicable UCC.

        Collateral: As defined in the granting clause of the Indenture.

        Collateral Account: As defined in the Titling Trust Agreement.

        Collateral Agency Agreement: As defined in the Titling Trust Agreement.

        Collateral Agent: As defined in the Titling Trust Agreement.

        Collateral Supplement: A supplement to the Collateral Agency Agreement
related to the Series 2003-A Portfolio Interest executed in accordance
therewith.

        Collected Amount: With respect to any Distribution Date, the sum of the
following amounts with respect to the related Monthly Period: (i) all
Collections received by the Servicer during such Monthly Period (other than less
than Full Prepayments with respect to Retail Leases, which amounts will be held
in the Collection Account and applied in the Monthly Period related to the
prepaid Scheduled Payment), (ii) all Monthly Advances made by the Servicer
pursuant to Section 2.14 of the Servicing Agreement, and (iii) all Warranty
Payments and Administrative Purchase Payments or the Optional Purchase Proceeds;
less an amount equal to the aggregate of the amounts representing reimbursement
for Outstanding Monthly Advances and Liquidation Expenses pursuant to Section
8.2(b)(i) of the Indenture.

        Collection Account: The account designated as such, established and
maintained pursuant to Section 2.02(a)(i) of the Servicing Agreement.

                                     App.A-6

<PAGE>

        Collections: All amounts received from Obligors or otherwise in respect
of Receivables during the related Monthly Period, whether constituting principal
or interest, lease payments, payments in respect of Residual Value, prepayments,
proceeds of sales of Financed Vehicles, Insurance Proceeds, Liquidation Proceeds
or otherwise, except for Supplemental Servicing Fees received on the Receivables
and the Related Security.

        Composite Schedule of Receivables: As defined in Section 3.04 of the
Servicing Agreement.

        Contract: With respect to a Retail Note or Retail Lease, the related
contract(s) or other agreement(s) with the related Obligor which set forth the
terms of such Retail Note or Retail Lease as the case may be.

        Contractual Obligation: As to any Person, any provision of any security
issued by such Person or any agreement, instrument or other undertaking to which
such Person is a party or by which it or any of its property is bound.

        Controlling Class: (a) So long as any Class A Notes are outstanding, the
Class A Notes, (b) if the Class A Notes are no longer outstanding but the Class
B Notes are outstanding, the Class B Notes, and (c) if the Notes are no longer
outstanding, the Certificates.

        Corporate Trust Office: With respect to the Indenture Trustee, the Owner
Trustee, the General Interest Trustee or the Portfolio Interest Trustee, the
principal office at which at any particular time the corporate trust business of
that Person shall be administered, which office at the Closing Date is located
at The Bank of New York, 101 Barclay Street with respect to the Indenture
Trustee, at Chase Manhattan Bank USA, National Association, c/o JPMorgan Chase,
500 Stanton Christiana Road, OPS4/3rd Floor, Newark, Delaware 19713, Attn:
Institutional Trust Services with respect to the Owner Trustee, at 1 Bank One
Plaza, Mail Stop IL1-0823, Chicago, IL 60670-0823 Attention: Global Corporate
Trust Services Division, with respect to the Portfolio Trustee, and at 1 Bank
One Plaza, Mail Stop IL1-0823, Chicago, IL 60670-0823 Attention: Global
Corporate Trust Services Division, with respect to the General Interest Trustee.

        Custodian: NFC, as Servicer, or another custodian named from time to
time in the Servicing Agreement.

        Cutoff Date: With respect to an Initial Receivable, the Initial Cutoff
Date, and with respect to a Subsequent Receivable, the related Subsequent Cutoff
Date.

        Dealer: (i) a Person with whom International has a valid dealer
sales/maintenance agreement to sell International Vehicles, (ii) a Person with
whom NFC has an agreement to extend new or used truck, truck chassis, bus or
trailer floor plan financing terms, (iii) a truck, bus, or trailer equipment
manufacturer with whom International has a valid agreement to sell International
Vehicles.

        Dealer Liability: With respect to any Receivable, all rights, claims and
actions of Navistar Financial against the Dealer which sold the Financed
Vehicle(s) which gave rise to such

                                     App.A-7

<PAGE>

Receivable and any successor Dealer for recourse or reimbursement of any losses,
costs or expenses arising as a result of a default by the Obligor on such
Receivable.

        Default: Any occurrence that is, or with notice or the lapse of time or
both would become, an Event of Default.

        Definitive Notes: The Notes specified in Section 2.12 of the Indenture.

        Delaware Trustee: As defined in the Series 2003-A Portfolio Supplement.

        Delinquency Percentage: With respect to a calendar month, an amount
equal to the aggregate Remaining Gross Balance of all outstanding Receivables
which are 61 days or more past due as of the last day of such calendar month, as
determined in accordance with the Servicer's normal practices, expressed as a
percentage of the aggregate Remaining Gross Balance of all outstanding
Receivables on the last day of such calendar month.

        Designated Account Property: The Designated Accounts, all amounts and
investments held from time to time in any Designated Account (whether in the
form of deposit accounts, Physical Property, book-entry securities,
uncertificated securities or otherwise) including the Reserve Account Initial
Deposit and all proceeds of the foregoing.

        Designated Accounts: Collectively, the Collection Account, the Reserve
Account, the Note Distribution Account, the Negative Carry Account and the
Pre-Funding Account.

        Designated Collateral: As defined in the Titling Trust Agreement.

        Designated Receivables: As defined in Section 2.01 of the Purchase
Agreement.

        Designated Retail Leases: As defined in Section 2.03 of the Lease
Purchase Agreement.

        Determination Date: The day that is two Business Days prior to the
Distribution Date.

        Distribution Date: With respect to a Monthly Period, the 15th day of the
next succeeding calendar month or, if such 15th day is not a Business Day, the
next succeeding Business Day, commencing June 16, 2003.

        Dollars or $: Lawful currency of the United States of America.

        Electing Holder: As defined in the Titling Trust Agreement.

        Eligible Deposit Account: Either (i) a segregated account with an
Eligible Institution or (ii) a segregated trust account with the corporate trust
department of a depository institution organized under the laws of the 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 have a credit rating from each Rating
Agency in one of its generic rating categories which signifies investment grade
for long-term unsecured debt.

                                     App.A-8

<PAGE>

        Eligible Institution: 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), (A) which has either (1)
a long-term unsecured debt rating of at least "AA" from S&P and "Aa2" from
Moody's or (2) a short-term unsecured debt or certificate of deposit rating of
at least "A-1" from S&P and "P-1" from Moody's, (B) whose deposits are insured
by the FDIC and (C) having a combined capital and surplus of at least
$50,000,000 as set forth in its most recent published annual report of
condition.

        Eligible Investments: Book-entry securities, negotiable instruments or
securities represented by instruments in bearer or registered form which
evidence:

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

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

                (iii)   commercial paper having, at the time of the investment
        or contractual commitment to invest therein, a rating from each of the
        Rating Agencies in the highest investment category for short-term
        unsecured debt obligations or certificates of deposit granted thereby;

                (iv)    investments in money market or common trust funds having
        a rating from each of the Rating Agencies in the highest investment
        category for short-term unsecured debt obligations or certificates of
        deposit granted thereby (including funds for which the Indenture Trustee
        or the Owner Trustee or any of their respective affiliates is investment
        manager or advisor, so long as such fund shall have such rating);

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

                (vi)    repurchase obligations with respect to any security that
        is a direct obligation of, or fully guaranteed by, the United States of
        America or any agency or instrumentality thereof the obligations of
        which are backed by the full faith and credit of the United States of
        America, in either case entered into with (A) a depository institution
        or trust company (acting as principal) described in clause (ii) or (B) a
        depository institution or trust company the deposits of which are
        insured by FDIC or the counterparty for which has a rating from each of
        the Rating Agencies in the highest

                                     App.A-9

<PAGE>

        investment category for short-term unsecured debt obligations, the
        collateral for which is held by a custodial bank for the benefit of the
        Issuer or the Indenture Trustee, is marked to market daily and is
        maintained in an amount that exceeds the amount of such repurchase
        obligation, and which requires liquidation of the collateral immediately
        upon the amount of such collateral being less than the amount of such
        repurchase obligation (unless the counterparty immediately satisfies the
        repurchase obligation upon being notified of such shortfall);

                (vii)   commercial paper master notes having, at the time of the
        investment or contractual commitment to invest therein, a rating from
        each of the Rating Agencies in the highest investment category for
        short-term unsecured debt obligations; and

                (viii)  any other investment permitted by each of the Rating
        Agencies.

in each case, other than as permitted by the Rating Agencies, maturing not later
than the Business Day immediately preceding the next Distribution Date.

        Equal Payment Fully Amortizing Receivable: A Retail Note that provides
for equal monthly payments that fully amortize the amount financed over the
original term to maturity.

        ERISA: The Employee Retirement Income Security Act of 1974, as amended.

        Event of Default: An event described in Section 5.1 of the Indenture.

        Exchange Act: The Securities Exchange Act of 1934, as amended.

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

        Expenses: The expenses described in Section 6.9 of the Trust Agreement.

        FDIC: The Federal Deposit Insurance Corporation or any successor entity
thereto.

        Final Scheduled Distribution Date: With respect to a class of
Securities, the Distribution Date in the month set forth below opposite such
Securities:

                Class A-1 Notes:        June 2004
                Class A-2 Notes:        March 2006
                Class A-3 Notes:        February 2007
                Class A-4 Notes:        November 2009
                Class B Notes:          November 2009

        Finance Lease: A Retail Lease that is not a TRAC Lease and which is
required by GAAP to be capitalized on the balance sheet of the related Obligor
and which gives the Obligor the right to purchase the Financed Vehicle at lease
expiration for $1,000 or less.

                                    App.A-10

<PAGE>

        Financed Vehicle: A new or used medium or heavy duty truck, truck
chassis bus or trailer, together with any accessions thereto which were financed
with the proceeds of the related Receivable, in the case of a Retail Note,
securing an Obligor's indebtedness under a Receivable and, in the case of a
Retail Lease, the new or used medium or heavy duty truck, truck chassis, bus or
trailer subject to the lease. A Receivable may be secured by one or more
Financed Vehicles.

        Financial Asset: The meaning given such term in Revised Article 8. As
used herein, the Financial Asset "related to" a Security Entitlement is the
Financial Asset in which the entitlement holder (as defined in Revised Article
8) holding such Security Entitlement has the rights and property interest
specified in Revised Article 8.

        Financial Parties: The Noteholders and the Certificateholders.

        Full Prepayment: With respect to a Distribution Date, that portion of an
Actual Payment (other than the Scheduled Payment), which with respect to (i) any
Retail Note, is sufficient to prepay such Receivable in full (after application
of the Scheduled Payment), (ii) a Retail Note secured by multiple Financed
Vehicles, equals the unpaid principal amount of the Retail Note relating to any
Financed Vehicle, as determined by the Servicer in accordance with its customary
servicing procedures or, (iii) a Retail Lease, is sufficient to pay in full the
Outstanding Capitalized Cost on the Financed Vehicle related thereto.

        Funding Percentage: With respect to any Distribution Date, the
percentage derived from the fraction the numerator of which is the Pre-Funded
Amount and the denominator of which is the sum of the Aggregate Receivables
Balance and the Pre-Funded Amount, in each case, as of the last day of the
related Monthly Period.

        Funding Period: The period beginning on and including the Closing Date
and ending on the first to occur of (a) the Distribution Date on which the
amount on deposit in the Pre-Funding Account (after giving effect to any
transfers therefrom in connection with the transfer of Subsequent Receivables to
the Issuer on such Distribution Date) is not greater than $100,000, (b) the date
on which an Event of Default or a Servicer Default occurs, (c) the date on which
an Insolvency Event occurs with respect to the Seller or NFC or (d) the close of
business on the December 2003 Distribution Date.

        Further Transfer and Servicing Agreements: The Pooling Agreement,
including each PSA Assignment, the Servicing Agreement, the Trust Agreement and
the Indenture.

        GAAP: Generally accepted accounting principles in the United States of
America in effect from time to time.

        General Collection Account: As defined in the Titling Trust Agreement.

        General Interest: As defined in the Titling Trust Agreement.

        General Interest Trustee: As defined in the Titling Trust Agreement.

                                    App.A-11

<PAGE>

        General Titling Trust Assets: Shall have the meaning given to the term
"General Trust Assets" in the Titling Trust Agreement.

        GI Holder: A holder of a certificate representing a divided beneficial
interest in the General Interest.

        Governmental Authority: Any nation or government, any state, province or
other political subdivision thereof and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government.

        Grant: To 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 the Indenture. A Grant of the Collateral or of any other agreement or
instrument shall include all rights, powers and options (but none of the
obligations) of the Granting party thereunder, including the immediate and
continuing right to claim for, collect, receive and give receipt for lease
payments and 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.

        Grantor: As defined in the Titling Trust Agreement.

        Gross Balance: As of any date of determination, (i) with respect to a
Retail Note, the unpaid principal balance of such Retail Note as of such date
plus, with respect to a Retail Note classified as a "finance charge-included
contract", the finance charges included in the payments due with respect to such
Retail Note on or after such date, and (ii) with respect to a Retail Lease, the
aggregate remaining periodic rental payments plus the TRAC Payment or purchase
option price set forth in such Retail Lease (which, for such purposes, shall be
assumed to be made on the last day of the lease term).

        Guaranty: With respect to any Receivable, a personal or commercial
guaranty of an Obligor's performance with respect to such Receivable.

        Harco Leasing: Harco Leasing Company, Inc., a Delaware corporation and
its successors and assigns.

        Holder: The Person in whose name a Note is registered on the Note
Register.

        Indemnified Parties: The Persons specified in Section 6.9 of the Trust
Agreement.

        Indenture: The Indenture, between the Issuer and the Indenture Trustee,
dated as of the Closing Date, as the same may from time to time be amended,
modified or otherwise supplemented.

                                    App.A-12

<PAGE>

        Indenture Trustee: The Bank of New York, a New York banking corporation,
not in its individual capacity but solely as trustee under the Indenture, or any
successor indenture trustee under the Indenture.

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

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

        Indirect Participant: A securities broker, dealer, bank, trust company
or other Person that clears through or maintains a custodial relationship with a
Clearing Agency Participant, either directly or indirectly.

        Initial Aggregate Starting Receivables Balance: $326,316,883.05.

        Initial Beneficiary: As defined in the Titling Trust Agreement.

        Initial Capitalized Cost: With respect to a Retail Lease, the aggregate
amount of financing provided for the related Financed Vehicle or Vehicles,
including insurance premiums, service and warranty contracts, federal excise
taxes, sales taxes, and other items customarily financed as part of Retail
Leases and related costs.

        Initial Cutoff Date: May 1, 2003.

        Initial LPA Assignment: As defined in Section 2.01 of the Lease Purchase
Agreement.

        Initial PA Assignment: As defined in Section 2.01 of the Purchase
Agreement.

        Initial PSA Assignment: As defined in Section 2.01 of the Pooling
Agreement.

        Initial Receivables: Receivables transferred to the Trust on the Closing
Date as set forth on the Schedule of Retail Notes and the Schedule of Retail
Leases attached to the Initial PSA Assignment.

        Insolvency Event: With respect to a specified Person, (i) the entry of a
decree or order by a court, agency or supervisory authority having jurisdiction
in the premises for the appointment of a conservator, receiver or liquidator for
such Person, in any insolvency, readjustment of debt,

                                    App.A-13

<PAGE>

marshaling of assets and liabilities or similar proceedings, or for the
winding-up or liquidation of such Person's affairs, and the continuance of any
such decree or order unstayed and in effect for a period of 60 consecutive days;
(ii) the consent by such Person to the appointment of a conservator, receiver or
liquidator in any insolvency, readjustment of debt, marshaling of assets and
liabilities or similar proceedings of or relating to such Person or of or
relating to substantially all of such Person's property, or (iii) such Person
shall admit in writing its inability to pay its debts generally as they become
due, file a petition to take advantage of any applicable insolvency or
reorganization statute, make an assignment for the benefit of its creditors or
voluntarily suspend payment of its obligations.

        Insolvency Laws: The Bankruptcy Code and any other applicable federal or
state bankruptcy, insolvency or other similar law.

        Insurance Policy: With respect to any Receivable, an insurance policy
covering physical damage, credit life, credit disability, theft, mechanical
breakdown or similar event to each Financed Vehicle securing such Receivable.

        Insurance Proceeds: Proceeds of any Insurance Policy with respect to
such Receivable.

        Interest Rate: With respect to the Class A-1 Notes, 1.25% per annum,
with respect to the Class A-2 Notes, 1.31% per annum, with respect to the Class
A-3 Notes, 1.73% per annum, with respect to the Class A-4 Notes, 2.24% per
annum, and with respect to the Class B Notes, 3.08% per annum.

        Interested Parties: The Issuer and each other party identified or
described in the Purchase Agreement or the Further Transfer and Servicing
Agreements as having an interest as owner, trustee, secured party or Financial
Party with respect to the Purchased Property.

        International: International Truck and Engine Corporation, a Delaware
corporation, and its successors and assigns.

        International Purchase Obligations: Certain obligations of
International, subject to limitations, to purchase Financed Vehicles securing
Liquidating Receivables pursuant to Article VI and other provisions of the
Master Intercompany Agreement by and between Navistar Financial and
International dated as of April 26, 1993, as such Master Intercompany Agreement
may be amended, supplemented, restated or otherwise modified.

        International Vehicle: Any truck, truck chassis, bus or trailer produced
by or for International or its Subsidiaries or sold by International or its
Subsidiaries to Dealers, including any body parts or accessions attached
thereto.

        Investment Company Act: The Investment Company Act of 1940, as amended.

        Investment Earnings: Investment earnings on funds deposited in the
Designated Accounts, net of losses and investment expenses, during the
applicable Monthly Period.

                                    App.A-14

<PAGE>

        Issuer: The party named as such in the Pooling Agreement and the
Indenture until a successor replaces it and, thereafter, means the successor
and, for all purposes of any provision contained therein and required by the
TIA, each other obligor on the Notes.

        Issuer Documents: As defined in the Recitals of the Administration
Agreement.

        Issuer Order and Issuer Request: 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.

        Lease Purchase Agreement: The Lease Purchase Agreement, dated as of the
Closing Date, by and between Harco Leasing and Navistar Financial.

        Lease Purchase Closing: As defined in Section 2.03 of the Lease Purchase
Agreement.

        Lease Purchase Date: As defined in Section 2.02 of the Lease Purchase
Agreement.

        Lease Purchase Price: As defined in Section 2.03 of the Lease Purchase
Agreement.

        Lien: Any security interest, lien, charge, pledge, equity or encumbrance
of any kind other than liens for taxes not yet due and payable, mechanics'
liens, any liens that attach by operation of law, and any liens being contested
by appropriate measures.

        Liquidating Receivable: A Receivable (i) as to which the Servicer (a)
has reasonably determined, in accordance with its customary servicing
procedures, that eventual payment of amounts owing on such Receivable is
unlikely, or (b) has repossessed the Financed Vehicle or all Financed Vehicles
securing the Receivable or (ii) as to which any related Scheduled Payment is at
least 210 days overdue.

        Liquidation Expenses: With respect to a Liquidating Receivable, an
amount not to exceed $750 (or such greater amount as the Servicer determines
necessary in accordance with its customary procedures to refurbish and dispose
of a repossessed Financed Vehicle) as an allowance for amounts charged to the
account of the Obligor, in keeping with the Servicer's customary procedures, for
repossession, refurbishment and disposition of the Financed Vehicle including
out-of-pocket costs related to the liquidation.

        Liquidation Proceeds: With respect to a Liquidating Receivable, all
amounts realized with respect to such Receivable, including the benefits of any
lease assignments, Insurance Proceeds, proceeds from any Dealer Liability,
proceeds from any International Purchase Obligations and proceeds from any
Guaranties, net of amounts that are required to be refunded to the Obligor on
such Receivable.

        London Business Day: Any day on which dealings in deposits in United
States Dollars are transacted in the London bank market.

        Low APR Receivable: A Receivable that has an APR that is less than the
Required Rate, other than a Temporary Interest Free Receivable.

                                    App.A-15

<PAGE>

        LPA Assignment: The Initial LPA Assignment and any subsequent Transfer
LPA Assignment.

        Material Adverse Effect: With respect to a Person, a material adverse
effect on (a) the ability of such Person to perform its obligations under any of
the Basic Documents or (b) the validity or enforceability of any of the Basic
Documents or the rights or remedies of any other Person thereunder.

        Maximum Negative Carry Amount: With respect to the Closing Date and any
Distribution Date, the product of (i) the excess of (a) the weighted average of
the Interest Rates on the Notes, as of such date over (b) 0.75%, multiplied by
(ii) the amount on deposit in the Pre-Funding Account on such date multiplied by
(iii) the fraction of a year represented by the number of days from such date
until the end of the Funding Period (calculated on the basis of a 360-day year
of twelve 30-day months).

        Monthly Advance: As defined in Section 2.14 of the Servicing Agreement.

        Monthly Period: With respect to a Determination Date and a Record Date,
the calendar month preceding the month in which such date occurs. With respect
to an Accounting Date, the calendar month in which such Accounting Date occurs.
With respect to a Distribution Date, the calendar month preceding the month in
which such Distribution Date occurs except that the Monthly Period relating to
the first Distribution Date shall be the period from the Initial Cutoff Date to
the last day of the calendar month immediately preceding the first Distribution
Date.

        Monthly Remittance Conditions: As defined in Section 2.12 of the
Servicing Agreement.

        Moody's: Moody's Investors Service or its successor. Navistar Financial
or NFC: Navistar Financial Corporation, a Delaware corporation, and its
successors and assigns.

        Negative Carry Account: The account designated as such, established and
maintained pursuant to Section 2.02(a)(vi) of the Servicing Agreement.

        Negative Carry Account Initial Deposit: Cash or Eligible Investments
having a value of $836,398.07.

        Negative Carry Account Property: As defined in the Granting Clause of
the Indenture.

        Negative Carry Amount: With respect to any Distribution Date, the excess
(if any) of (i) the product of (a) the sum of the Aggregate Class A Noteholders'
Interest Distributable Amount and the Class B Noteholders' Interest
Distributable Amount for such Distribution Date multiplied by (b) the Funding
Percentage for such Distribution Date over (ii) the Investment Earnings on
amounts in the Pre-Funding Account during the related Monthly Period.

        New York UCC: The UCC as in effect in the State of New York.

                                    App.A-16

<PAGE>

        NFRRC: Navistar Financial Retail Receivables Corporation, a Delaware
corporation, and its successors and assigns.

        NIC: Navistar International Corporation, a Delaware corporation, and its
successors and assigns.

        Note Depository: The depositary from time to time selected by the
Indenture Trustee on behalf of the Issuer in whose name the Notes are registered
prior to the issue of Definitive Notes. The first Note Depository shall be Cede
& Co., the nominee of the initial Clearing Agency.

        Note Depository Agreement: The agreement, dated as of the Closing Date,
among the Issuer, the Indenture Trustee and The Depository Trust Company, as the
initial Clearing Agency relating to the Notes, substantially in the form of
Exhibit D to the Indenture, as the same may be amended and supplemented from
time to time.

        Note Distribution Account: The account designated as such, established
and maintained pursuant to Section 2.02(a)(ii) of the Servicing Agreement.

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

        Note Pool Factor: With respect to any class of Notes and any
Distribution Date, a seven-digit decimal figure computed by the Servicer which
is equal to the Note Principal Balance for such class as of the close of such
Distribution Date divided by the initial Note Principal Balance for such class.

        Note Principal Balance: With respect to any class of Notes and any
Distribution Date, the initial aggregate principal balance of such class of
Notes, reduced by all previous payments to the Noteholders of such class in
respect of principal of such Notes, other than the Noteholders' Prepayment
Premium.

        Note Register: With respect to any class of Notes, the register of such
Notes maintained pursuant to Section 2.4(a) of the Indenture.

        Note Registrar: The registrar at any time of the Note Register,
appointed pursuant to Section 2.4 of the Indenture.

        Noteholders: Holders of record of the Notes pursuant to the Indenture
and, with respect to any class of Notes, holders of record of such class of
Notes pursuant to the Indenture.

        Noteholders' Prepayment Premium: With respect to (i) the Class A-1
Notes, an amount equal to the excess, if any, discounted as described below, of
(a) the amount of interest that would have accrued on the portion of the
remaining Pre-Funded Amount to be paid to the Noteholders of the Class A-1 Notes
pursuant to Section 8.2(e) of the Indenture (the "Class A-1

                                    App.A-17

<PAGE>

Note Prepayment Amount") at the Interest Rate of such class during the period
commencing on and including the Distribution Date on which such Class A-1 Note
Prepayment Amount is required to be paid to but excluding August 15, 2003, over
(b) the amount of interest that would have accrued on such Class A-1 Note
Prepayment Amount over the same period at a per annum rate of interest equal to
the bond equivalent yield to maturity on the Determination Date preceding such
Distribution Date on the United States Treasury Bill due August 21, 2003 (such
excess to be discounted on a monthly basis to present value to such Distribution
Date at the yield described in clause (i)(b) above), (ii) the Class A-2 Notes,
an amount equal to the excess, if any, discounted as described below, of (a) the
amount of interest that would have accrued on the portion of the remaining
Pre-Funded Amount to be paid to the Noteholders of the Class A-2 Notes pursuant
to Section 8.2(e) of the Indenture (the "Class A-2 Note Prepayment Amount") at
the Interest Rate of such class during the period commencing on and including
the Distribution Date on which such Class A-2 Note Prepayment Amount is required
to be paid to but excluding May 15, 2004, over (b) the amount of interest that
would have accrued on such Class A-2 Note Prepayment Amount over the same period
at a per annum rate of interest equal to the bond equivalent yield to maturity
on the Determination Date preceding such Distribution Date on the 5-1/4% United
States Treasury Note due May 15, 2004 (such excess to be discounted on a monthly
basis to present value to such Distribution Date at the yield described in
clause (ii)(b) above), (iii) the Class A-3 Notes, an amount equal to the excess,
if any, discounted as described below, of (a) the amount of interest that would
have accrued on the portion of the remaining Pre-Funded Amount to be paid to the
Noteholders of the Class A-3 Notes pursuant to Section 8.2(e) of the Indenture
(the "Class A-3 Note Prepayment Amount") at the Interest Rate of such class
during the period commencing on and including the Distribution Date on which
such Class A-3 Note Prepayment Amount is required to be paid to but excluding
May 15, 2005 over (b) the amount of interest that would have accrued on such
Class A-3 Note Prepayment Amount over the same period at a per annum rate of
interest equal to the bond equivalent yield to maturity on the Determination
Date preceding such Distribution Date on the 6-1/2% United States Treasury Note
due May 15, 2005 (such excess to be discounted on a monthly basis to present
value to such Distribution Date at the yield described in clause (iii)(b)
above), (iv) the Class A-4 Notes, an amount equal to the excess, if any,
discounted as described below, of (a) the amount of interest that would have
accrued on the portion of the remaining Pre-Funded Amount to be paid to the
Noteholders of the Class A-4 Notes pursuant to Section 8.2(e) of the Indenture
(the "Class A-4 Note Prepayment Amount") at the Interest Rate of such class
during the period commencing on and including the Distribution Date on which
such Class A-4 Note Prepayment Amount is required to be paid to but excluding
May 15, 2006, over (b) the amount of interest that would have accrued on such
Class A-4 Note Prepayment Amount over the same period at a per annum rate of
interest equal to the bond equivalent yield to maturity on the Determination
Date preceding such Distribution Date on the 4-5/8% United States Treasury Note
due May 15, 2006 (such excess to be discounted on a monthly basis to present
value to such Distribution Date at the yield described in clause (iv)(b) above)
and (v) the Class B Notes, an amount equal to the excess, if any, discounted as
described below, of (a) the amount of interest that would have accrued on the
portion of the remaining Pre-Funded Amount to be paid to the Noteholders of the
Class B Notes pursuant to Section 8.2(e) of the Indenture (the "Class B Note
Prepayment Amount") at the Interest Rate of such class during the period
commencing on and including the Distribution Date on which such Class B Note
Prepayment Amount is required to be paid to but excluding

                                    App.A-18

<PAGE>

June 15, 2005, over (b) the amount of interest that would have accrued on such
Class B Note Prepayment Amount over the same period at a per annum rate of
interest equal to the bond equivalent yield to maturity on the Determination
Date preceding such Distribution Date on the 6-1/2% United States Treasury Note
due May 15, 2005 (such excess to be discounted on a monthly basis to present
value to such Distribution Date at the yield described in clause (v)(b) above).

        Noteholders' Principal Carryover Shortfall: As of the close of any
Distribution Date, the excess, if any, of Noteholders' Principal Distributable
Amount for such Distribution Date over the amount that was actually deposited in
the Note Distribution Account on the day preceding such Distribution Date in
respect of principal.

        Noteholders' Principal Distributable Amount: For any Distribution Date,
the lesser of (x) the sum of (i) the Principal Distributable Amount, (ii) the
Noteholders' Principal Carryover Shortfall for the immediately preceding
Distribution Date and (iii) on the Final Scheduled Distribution Date for a class
of Notes, the amount necessary to reduce the Note Principal Balance with respect
to such class of Notes to zero and (y) the sum of the Note Principal Balances
with respect to each outstanding class of Notes.

        Notes: Collectively, the Class A-1 Notes, the Class A-2 Notes, the Class
A-3 Notes, the Class A-4 Notes and the Class B ----- Notes.

        Notice of Default: As defined in Section 5.1(d) of the Indenture.

        Obligor: (i) with respect to any Retail Note, the purchaser or any
co-purchaser of the related Financed Vehicle or Financed Vehicles or any other
Person, other than the maker of a Guaranty, who owes payments under such
Receivable and (ii) with respect to any Retail Lease, the lessee or any
co-lessee of the related Financed Vehicle or Financed Vehicles or any other
Person, other than the maker of a Guaranty, who owes payments under such
Receivable.

        Officer's Certificate: A certificate signed by any Authorized Officer of
the Issuer, under the circumstances described in, and otherwise complying with,
the applicable requirements of Section 11.1 of the Indenture, and delivered to
the Indenture Trustee. Unless otherwise specified, any reference in the
Indenture to an officer's certificate shall be to an Officer's Certificate of
any Authorized Officer of the Issuer. Where an Officer's Certificate is required
to be delivered by any other Person, a certificate signed by any Authorized
Officer of such Person.

        Opinion of Counsel: A written opinion of counsel, who may, except as
otherwise expressly provided, be an employee of the Seller or the Servicer. In
addition, for purposes of the Indenture: (i) such counsel shall be satisfactory
to the Indenture Trustee; (ii) the opinion shall be addressed to the Indenture
Trustee as Indenture Trustee and (iii) the opinion shall comply with any
applicable requirements of Section 11.1 of the Indenture and shall be in form
and substance satisfactory to the Indenture Trustee.

        Optional Purchase Proceeds: The amount specified in the second or third
sentence, as applicable, of Section 4.01 of the Pooling Agreement.

                                    App.A-19

<PAGE>

        Other Titling Trust Parties: The Titling Trust, the Titling Trustees,
the Collateral Agent, and Harco Leasing.

        Outstanding: With respect to the Notes, as of the date of determination,
all Notes theretofore authenticated and delivered under the Indenture except:

                (i)     Notes theretofore canceled by the Indenture Trustee or
        delivered to the Indenture Trustee for cancellation;

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

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

provided, however, that in determining whether the Holders of the requisite
Outstanding Amount of the Controlling Class 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 pledgor'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: As of any date, the aggregate principal amount of
all Notes, or a class of Notes, as applicable, Outstanding at such date. Payment
of Noteholders' Prepayment Premium to Holders of Outstanding Notes will not
reduce the Outstanding Amount of the Notes.

        Outstanding Capitalized Cost: With respect to a Retail Lease, the amount
to which the Initial Capitalized Cost of the related Financed Vehicle has been
amortized at the APR by the periodic lease payments on such Financed Vehicle and
any purchase payments or, in the case of a TRAC Lease, the TRAC Payment made
upon expiration of such TRAC Lease.

        Outstanding Monthly Advances: As of an Accounting Date with respect to a
Receivable, the sum of all Monthly Advances made as of or prior to such
Accounting Date minus all payments or collections as of or prior to such
Accounting Date which are specified in Section 2.14 of the Servicing Agreement
as reducing Outstanding Monthly Advances with respect to such Receivable.

                                    App.A-20

<PAGE>

        Overdue Payment: With respect to a Distribution Date and to a
Receivable, all payments received during the related Monthly Period in excess of
any Supplemental Servicing Fees, to the extent of the Outstanding Monthly
Advances relating to such Receivable.

        Owner: For purposes of the Purchase Agreement, the Pooling Agreement and
the Servicing Agreement, the "Owner" of a Receivable means (i) NFRRC until the
execution and delivery of the Further Transfer and Servicing Agreements and (ii)
thereafter, the Issuer; provided, that NFC or NFRRC, as applicable, shall be the
"Owner" of any Receivable from and after the time that such Person shall acquire
such Receivable, whether pursuant to Section 5.04 of the Purchase Agreement,
Section 2.08 of the Servicing Agreement, any other provision of the Further
Transfer and Servicing Agreements or otherwise.

        Owner Trust Estate: 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
Pooling Agreement, all funds on deposit from time to time in the Collection
Account, the Pre-Funding Account, the Negative Carry Account, the Reserve
Account and the Certificate Distribution Account and all other property of the
Issuer from time to time, including any rights of the Issuer pursuant to the
Pooling Agreement, the Servicing Agreement and the Administration Agreement.

        Owner Trustee: Chase Manhattan Bank USA, National Association, not in
its individual capacity but solely as Owner Trustee under the Trust Agreement,
or any successor trustee under the Trust Agreement.

        PA Assignment: As defined in Section 2.01 of the Purchase Agreement.

        Partial Prepayment: With respect to a Distribution Date and to any
Receivable, the portion of an Actual Payment in excess of the Scheduled Payment
which equals one or more future Scheduled Payments but does not constitute a
Full Prepayment and results in a Rebate in accordance with the Servicer's
customary procedures.

        Paying Agent: (i) With respect to the Indenture, the Indenture Trustee
or any other Person that meets the eligibility standards for the Indenture
Trustee specified in Section 6.11 of the Indenture and is authorized by the
Issuer to make the payments to and distributions from the Collection Account and
the Note Distribution Account, including payment of principal of or interest on
the Notes on behalf of the Issuer and (ii) with respect to the Trust Agreement,
any paying agent or co-paying agent appointed pursuant to Section 3.9 of the
Trust Agreement that meets the eligibility standards for the Owner Trustee
specified in Section 6.13 of the Trust Agreement, and initially JPMorgan Chase
Bank.

        Permitted Financing: As defined in the Titling Trust Agreement.

        Permitted Liens:

                (A)     with respect to any Collateral, the interests of the
parties under the Basic Documents; and

                                    App.A-21

<PAGE>

                (B)     with respect to any Financed Vehicle subject to a Retail
Lease or any Financed Vehicle which has been repossessed by the Servicer:

                (1)     any liens on the Financed Vehicle for taxes,
        assessments, levies, fees and other government and similar charges not
        yet due and payable or the amount or validity of which is being
        contested;

                (2)     any liens of mechanics, suppliers, vendors, materialmen,
        laborers, employees, repairmen and other like liens arising in the
        ordinary course of Harco Leasing's or the Titling Trust's (or if a
        Retail Lease is then in effect, any Obligor's) business on the Financed
        Vehicle related thereto securing obligations which are not due and
        payable or the amount or validity of which is being contested;

                (3)     liens on the Financed Vehicle related thereto arising
        out of any judgment or award or by operation of law, in any such case as
        a result of an act or omission by the related Obligor;

                (4)     liens which may exist in accessions to the Financed
        Vehicles not financed by the Receivables and

                (5)     any lien of the Collateral Agent noted on the
        certificate of title of a Financed Vehicle.

        Person: Any legal person, including any individual, corporation,
partnership, limited liability company, association, joint-stock company, trust,
unincorporated organization, governmental entity or other entity of similar
nature.

        Physical Property: Bankers' acceptances, commercial paper, negotiable
certificates of deposit and other obligations that constitute "instruments"
within the meaning of Section 9-102(a)(47) of the UCC and are susceptible of
physical delivery.

        Plan: With respect to a Person, at a particular time, any employee
benefit plan which is covered by ERISA and in respect of which such Person or a
Commonly Controlled Entity with respect to such Person is (or, if such plan were
terminated at such time, would under Section 4069 of ERISA be deemed to be) an
"employer" as defined in Section 3(5) of ERISA.

        Pooling Agreement: The Pooling Agreement, dated as of the Closing Date,
between NFRRC and the Issuer, as amended, modified and supplemented from time to
time.

        Portfolio Assets: As defined in the Titling Trust Agreement.

        Portfolio Interest: As defined in the Titling Trust Agreement.

        Portfolio Interest Certificate: As defined in the Titling Trust
Agreement.

        Portfolio Interest Trustee: As defined in Preamble of the Servicing
Agreement.

                                    App.A-22

<PAGE>

        Portfolio Servicing Agreement Supplement: As defined in Section 1.02 of
the Servicing Agreement.

        Portfolio Supplement: As defined in the Titling Trust Agreement.

        Portfolio Trustee: As defined in the Titling Trust Agreement.

        Predecessor Note: With respect to any particular Note, every previous
Note evidencing all or a portion of the same debt as that evidenced by such
particular Note; and, for the purpose of this definition, any Note authenticated
and delivered under Section 2.5 of the Indenture in lieu of a mutilated, lost,
destroyed or stolen Note.

        Pre-Funded Amount: With respect to any Distribution Date, the amount on
deposit in the Pre-Funding Account.

        Pre-Funded Percentage: With respect to a class of Notes, the quotient
(expressed as a percentage) of (i) the initial principal balance of such class
of Notes as of the Closing Date and (ii) the sum of the initial principal
balances of each class of Notes as of the Closing Date.

        Pre-Funding Account: The account designated as such, established and
maintained pursuant to Section 2.02(a)(v) of the Servicing Agreement.

        Pre-Funding Account Initial Deposit: Cash or Eligible Investments having
a value of $173,683,116.95.

        Pre-Funding Account Property: As defined in the Granting Clause of the
Indenture.

        Prepayment: With respect to a Distribution Date and to a Receivable, the
portion of an Actual Payment in excess of the Scheduled Payment.

        Principal Distributable Amount: With respect to any Distribution Date,
the sum of the following items: (i) the principal portion of all Scheduled
Payments due with respect to the related Monthly Period on Receivables held by
the Trust (other than Liquidating Receivables) excluding Scheduled Payments that
were prepaid in any prior Monthly Period and included in the Principal
Distributable Amount on a prior Distribution Date, (ii) the principal portion of
all Prepayments (or, in the case of the Retail Leases, all Full Prepayments
received during the related Monthly Period (except to the extent included in (i)
above)), (iii) the Receivable Balance of each Receivable that the Servicer
purchased, the Seller repurchased or that became a Liquidating Receivable during
the related Monthly Period (except to the extent included in (i) or (ii) above)
and (iv) the Receivable Balance of each Retail Lease that terminated or expired
during the related Monthly Period (except to the extent included in (i), (ii) or
(iii) above).

        Principal Payment Amount: With respect to any Distribution Date, an
amount equal to the lesser of (a) the Principal Distributable Amount for such
Distribution Date and (b) the excess, if any, of the Total Available Amount over
the sum of the Total Servicing Fee and accrued and unpaid interest on the Notes
due and payable on such Distribution Date.

                                    App.A-23

<PAGE>

        Proceeding: Any suit in equity, action at law or other judicial or
administrative proceeding.

        Program: As defined in Section 3.02 of the Servicing Agreement.

        PSA Assignment: The Initial PSA Assignment and any Subsequent Transfer
PSA Assignment.

        Purchase Agreement: The Purchase Agreement, dated as of the Closing
Date, between NFC and NFRRC, as amended and supplemented from time to time.

        Purchase Date: As defined in Section 2.01 of the Purchase Agreement.

        Purchase Price: As defined in Section 2.02 of the Purchase Agreement.

        Purchased Property: As of any date, means all of the Designated
Receivables and the Related Security transferred by NFC to NFRRC pursuant to
Section 2.01 of the Purchase Agreement as of such date.

        Rating Agency: Each of the nationally recognized statistical rating
organizations requested by the Seller to provide ratings on the Notes which are
rating the Notes on such date.

        Rating Agency Condition: With respect to any action, the condition that
each Rating Agency shall have been given at least 10 days (or such shorter
period as is acceptable to each Rating Agency) prior notice thereof and that
each of the Rating Agencies shall have notified the Seller, the Servicer and the
Issuer in writing that such action shall not result in a downgrade or withdrawal
of the then current rating of the Notes.

        Rebate: With respect to a given date and to a Receivable, the rebate
under such Receivable that is or would be payable to the Obligor for unearned
finance charges or any other charges that are or would be subject to a rebate to
the Obligor upon the payment of a Partial Prepayment or a Full Prepayment.

        Receivable: (a) As used in the Basic Documents (other than the Purchase
Agreement) in the context of a transfer of a Receivable or the ownership of a
Receivable, a Retail Note or the beneficial interest in a Retail Lease the
record owner of which is the Titling Trust that is transferred to the Issuer
pursuant to the Pooling Agreement and (b) as used in the Basic Documents in all
other contexts, a Retail Lease or a Retail Note that is transferred to the
Issuer pursuant to the Pooling Agreement.

        Receivable Balance: As of an Accounting Date, (a) with respect to any
Retail Note, the Starting Receivable Balance thereof minus the sum of the
following amounts, in each case computed in accordance with the actuarial
method: (i) that portion of all Scheduled Payments allocated to principal due on
or after the Cutoff Date and on or prior to the Accounting Date, (ii) that
portion of all Warranty Payments or Administrative Purchase Payments allocated
to principal, (iii) that portion of all Prepayments allocated to principal, and
(iv) that portion of the following received and allocated to principal by the
Servicer: benefits of any lease assignments,

                                    App.A-24

<PAGE>

proceeds from any Insurance Policies, Liquidation Proceeds, proceeds from any
Dealer Liability, proceeds from any International Purchase Obligations and
proceeds from any Guaranties and (b) with respect to a Retail Lease, the
remaining Scheduled Payments or purchase option price set forth in the Retail
Lease minus, without duplication, the sum of (i) Unearned Income, (ii) all
payments received by the Servicer from or for the account of the Obligor which
are not late fees, prepayment charges or certain other similar fees or charges,
(iii) any Warranty Payment or Administrative Purchase Payment with respect to
such Retail Lease, (iv) any Prepayments applied to such Retail Lease, and (v)
proceeds received by the Servicer from any Insurance Policies with respect to
such Retail Lease.

        Receivables File: As defined in Section 4.01 of the Servicing Agreement.

        Record Date: (i) With respect to the Notes and with respect to any
Distribution Date, the close of business on the day immediately preceding such
Distribution Date, or if Definitive Notes are issued, the last day of the
preceding Monthly Period; and (ii) with respect to the Certificates and with
respect to any Distribution Date, the last day of the preceding Monthly Period.

        Redemption Date: The Distribution Date specified as such by the Servicer
or the Issuer as described in Sections 10.1 and 10.2 of the Indenture.

        Redemption Price: An amount equal to the aggregate of the Outstanding
Amount of such Notes, together with all accrued and unpaid interest thereon as
of the Redemption Date.

        Registered Holder: The Person in whose name a Note is registered on the
Note Register on the applicable Record Date.

        Related Retail Note Assets: With respect to a Retail Note, the right,
title and interest of the Seller in and to the following assets:

                        (a)     all amounts due on and under such Retail Note on
                                and after the applicable Cutoff Date;

                        (b)     the security interests in the Financed Vehicles
                                granted by Obligors pursuant to such Retail Note
                                and, to the extent permitted by law, in any
                                accessions thereto which are financed by such
                                Retail Note;

                        (c)     any proceeds from any Insurance Policies with
                                respect to such Retail Note;

                        (d)     any proceeds from Dealer Liability with respect
                                to such Retail Note, proceeds from any
                                International Purchase Obligations with respect
                                to such Retail Note (subject to the limitation
                                set forth in Section 5.08 of the Purchase
                                Agreement and Section 2.04 of the Pooling
                                Agreement, as applicable) and proceeds from any
                                Guaranties of such Retail Note;

                                    App.A-25

<PAGE>

                        (e)     the benefit of any lease assignments with
                                respect to the Financed Vehicles; and

                        (f)     any proceeds of the property described in
                                clauses (a) through (d) above.

        Related Security: With respect to a Retail Note or Retail Lease, the
Related Retail Note Assets or the Related Titling Trust Assets, as applicable.

        Related Titling Trust Assets: With respect to a Retail Lease, the
following assets:

                (i)     each Financed Vehicle subject to such Retail Lease;

                (ii)    the Certificate of Title of each such Financed Vehicle;

                (iii)   the rights (but not the obligations) with respect to any
                        such Retail Lease or Financed Vehicle, including the
                        right to proceeds arising from all International
                        Purchase Obligations, if any, or any other repurchase
                        obligation with respect to such Retail Lease or Financed
                        Vehicle;

                (iv)    all of the Transferor's or Navistar Financial's Dealer
                        Agreement Rights (as such term is defined in the Titling
                        Trust Agreement);

                (v)     any proceeds of any Insurance Policy with respect to
                        such Retail Lease or Financed Vehicle;

                (vi)    any rights of the lessor with respect to any security
                        deposit relating to such Retail Lease in accordance with
                        the terms of such Retail Lease;

                (vii)   the rights with respect to such Retail Lease or Financed
                        Vehicle under the Titling Trust Servicing Agreement;

                (viii)  all amounts due on and under such Retail Lease on and
                        after the applicable Cutoff Date;

                (ix)    all proceeds of the foregoing, including all Collections
                        and all Liquidation Proceeds and all Disposition
                        Proceeds (as such term is defined in the Titling Trust
                        Agreement) with respect to such Financed Vehicles; and

                (x)     all other Titling Trust Assets relating to such Retail
                        Lease.

        Remaining Gross Balance: With respect to any Receivable (other than a
Liquidating Receivable) and as of an Accounting Date, the Starting Gross
Receivable Balance thereof minus the sum of (i) the portion of all Actual
Payments with respect to such Receivable, (ii) any Warranty Payment or
Administrative Purchase Payment with respect to any such Receivable, (iii) any
Prepayments applied to reduce the Starting Gross Receivable Balance of any such
Receivable and (iv) proceeds from any Insurance Policies with respect to such
Receivable, plus

                                    App.A-26

<PAGE>

for any Receivable not classified by the Servicer as a "finance charge -
included contract," the portion of the payments specified in the preceding
clauses (i), (ii), (iii) or (iv) above allocable in accordance with the
actuarial method to finance charges; provided, however, that the Remaining Gross
Balance of any Receivable that has been designated a Liquidating Receivable
during the related Monthly Period shall equal zero.

        Repurchase Event: A Repurchase Event described in Section 5.04 of the
Purchase Agreement.

        Required Deposit Rating: A rating on short-term unsecured debt
obligations of P-1 by Moody's and A-1+ by S&P. Any requirement that short-term
unsecured debt obligations have the "Required Deposit Rating" means that such
short-term unsecured debt obligations have the foregoing required ratings from
each of such rating agencies.

        Required Global Secured Parties: As defined in the Titling Trust
Agreement.

        Requisite GI Holder: As defined in the Titling Trust Agreement.

        Required Negative Carry Account Balance: As of any Determination Date,
an amount equal to the lesser of (a) the Negative Carry Account Initial Deposit
minus all previous withdrawals from the Negative Carry Account (other than
Investment Earnings, if any, withdrawn to pay the Certificateholders pursuant to
Section 2.02 of the Servicing Agreement) and (b) the Maximum Negative Carry
Amount as of such date.

        Required Rate: 2.90%.

        Requirement of Law: As to any Person, the certificate of incorporation
and by-laws or other organizational or governing documents of such Person, and
any law, treaty, rule or regulation or determination of an arbitrator or a court
or other Governmental Authority, in each case applicable to or binding upon such
Person or any of its property or to which such Person or any of its property is
subject.

        Reserve Account: An account designated as such, established and
maintained pursuant to Section 2.02(a)(iv) of the Servicing Agreement.

        Reserve Account Initial Deposit: Cash or Eligible Investments having a
value of $12,755,101.71, which is equal to the sum of (1) 4.00% of the Initial
Aggregate Starting Receivables Balance and (2) the aggregate Yield Supplemental
Required Deposit Amounts for the Initial Receivables, shall be deposited into
the Reserve Account on the Closing Date pursuant to Section 2.01 of the Pooling
Agreement.

        Reserve Account Subsequent Transfer Deposit: With respect to any
Subsequent Transfer Date, cash or Eligible Investments in an amount equal to the
sum of (1) 4.00% of the aggregate Starting Receivable Balance of the transferred
Subsequent Receivables and (2) the aggregate Yield Supplement Required Deposit
Amounts for the transferred Subsequent Receivables, which shall be deposited
into the Reserve Account on such Subsequent Transfer Date, pursuant to Section
8.11(a) of the Indenture.

                                    App.A-27

<PAGE>

        Reserve Account Property: As defined in the Granting Clause of the
Indenture.

        Residual Value: With respect to a TRAC Lease, an amount specified at
lease inception in the TRAC Lease, and with respect to a Finance Lease, the
amount of the Obligor's purchase option under that Finance Lease.

        Responsible Officer: With respect to the Indenture Trustee or the Owner
Trustee, any officer within the Corporate Trust Office of such trustee,
including any Vice President, Assistant Vice President, Assistant Secretary,
Assistant Treasurer, Trust Officer or any other officer of such Trustee who
customarily performs functions similar to those performed by the persons who at
the time shall be such officers, respectively, or to whom any corporate trust
matter is referred because of such person's knowledge of and familiarity with
the particular subject and who shall have direct responsibility for the
administration of the Indenture or the Trust, as applicable, and, with respect
to the Servicer, the President, any Vice President, Assistant Vice President,
Secretary, Assistant Secretary or any other officer or assistant officer of such
Person 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.

        Retail Lease: A lease by an Obligor of one or more Financed Vehicles,
originated or acquired by Navistar Financial or one or more of its Affiliates.

        Retail Note: A retail loan evidenced by a note and secured by one or
more Financed Vehicles, originated or acquired by Navistar Financial or one or
more of its Affiliates.

        Revised Article 8: Revised Article 8 (1994 Version) (and corresponding
amendments to Article 9) as promulgated in 1994 by the National Conference of
Commissioners on Uniform State Laws, in the form in which it has been adopted in
the State of New York.

        Schedule of Retail Leases: Each schedule attached to a PA Assignment or
a PSA Assignment specifying the Retail Leases then being transferred to the
Issuer.

        Schedule of Retail Notes: Each schedule attached to a PA Assignment or a
PSA Assignment specifying the Retail Notes then being transferred to the Issuer.

        Scheduled Payment: With respect to any Receivable, a payment which (i)
is in the amount required under the terms of such Receivable in effect as of its
applicable Cutoff Date except, in the case of any Receivable secured by more
than one Financed Vehicle, including any changes in the terms of such Receivable
resulting from a Full Prepayment with respect to any Financed Vehicle related
thereto, including, in the case of a TRAC Lease, the TRAC Payment, and (ii) is
payable by the Obligor of such Receivable. When Scheduled Payment is used with
reference to a Distribution Date after the date such Receivable is transferred
to the Issuer, it means the payment which is due in the related Monthly Period;
provided, however, that in the case of the first Distribution Date, the
Scheduled Payment shall include all such payments due from the Obligor on or
after its applicable Cutoff Date.

        Secretary of State: The Secretary of State of the State of Delaware.

                                    App.A-28

<PAGE>

        Securities: The Notes and the Certificates.

        Securities Act: The United States Securities Act of 1933, as amended
from time to time.

        Securities Intermediary: As defined in Section 2.02(b) of the Servicing
Agreement.

        Security Certificate: As defined in Section 8-102(a)(16) of the New York
UCC.

        Security Document: As defined in Section 11.1 of the Collateral
Supplement.

        Security Entitlement: As defined in Section 8-102(a)(17) of the New York
UCC.

        Securityholder: Any of the Noteholders or Certificateholders.

        Seller: As defined in the Recitals to the Pooling Agreement.

        Servicer: The Person executing the Servicing Agreement as the Servicer,
or its successor in interest pursuant to Section 7.02 of the Servicing
Agreement.

        Servicer Default: Any of the events specified in Section 7.01 of the
Servicing Agreement; provided that any requirement for the giving of notice, the
lapse of time, or both, or any other condition, has been satisfied.

        Servicer's Certificate: A certificate, completed by and executed on
behalf of the Servicer, in accordance with Section 2.17 of the Servicing
Agreement.

        Servicing Agreement: The Servicing Agreement, dated as of the Closing
Date by and among Navistar Leasing Company, Harco Leasing Company, Inc., NFRRC,
the Issuer, the Servicer, the Collateral Agent and the Portfolio Trustee, as
amended, modified and supplemented from time to time.

        Series 2003-A Portfolio Assets: As of any date, all of the Retail Leases
identified on any Schedule of Retail Leases attached to a Initial LPA Assignment
or any Subsequent Transfer LPA Assignment on or before such date, and the
Related Titling Trust Assets with respect to such Retail Leases, other than any
such Retail Leases which are (i) Warranty Receivables which have been
repurchased by NFC, (ii) Administrative Receivables which have been repurchased
by the Servicer, or (iii) which have otherwise been terminated, on or before
such date (and the Related Titling Trust Assets).

        Series 2003-A Portfolio Certificate: The Portfolio Interest Certificate
representing the Series 2003-A Portfolio Interest.

        Series 2003-A Portfolio Interest: The portfolio interest created
pursuant to the Series 2003-A Portfolio Supplement.

        Series 2003-A Portfolio Interest Certificate: The Portfolio Interest
Certificate representing the Series 2003-A Portfolio Interest.

                                    App.A-29

<PAGE>

        Series 2003-A Portfolio Interest Collateral: As defined in Section 11.2
of the Collateral Supplement.

        Series 2003-A Portfolio Interest Obligor: As defined in the Recitals of
the Collateral Supplement.

        Series 2003-A Portfolio Supplement: The Series 2003-A Portfolio
Supplement to the Titling Trust Agreement dated as of the Closing Date among
Harco Leasing, as Grantor and Initial Beneficiary, the General Interest Trustee,
the Series 2003-A Portfolio Trustee and the Delaware Trustee.

        Series 2003-A Portfolio Trustee: As defined in the Series 2003-A
Portfolio Supplement.

        Series 2003-A Secured Party: As defined in the Recitals of the
Collateral Supplement.

        Sold Retail Lease Property: As defined in Section 2.04 of the Lease
Purchase Agreement.

        S&P: Standard & Poor's Ratings Services, or its successor.

        Special Purpose Entity: As defined in the Titling Trust Agreement.

        Specified Reserve Account Balance: With respect to any Distribution
Date, the lesser of (i) the Note Principal Balance for all classes of Notes as
of such Distribution Date, and (ii) the greater of:

                (1) the sum of (a) 5.50% of the sum of the Aggregate Receivables
        Balance as of the close of business on the last day of the related
        Monthly Period and the aggregate of the Starting Receivable Balances of
        all Subsequent Receivables acquired by the Issuer after the last day of
        the related Monthly Period but on or prior to such Distribution Date
        except that if on any Distribution Date (i) the product (expressed as a
        percentage) of (A) twelve and (B) a fraction, the numerator of which is
        equal to the sum of the Aggregate Losses plus Liquidation Proceeds for
        each of the calendar months which are the fifth, fourth and third
        calendar months preceding the calendar month immediately preceding such
        Distribution Date, minus the sum of the Liquidation Proceeds for the
        Monthly Periods which are the first, second and third calendar months
        preceding the calendar month immediately preceding such Distribution
        Date, and the denominator of which is the sum of the Remaining Gross
        Balances of all outstanding Receivables as of the last day of each of
        the sixth, fifth and fourth calendar months preceding the calendar month
        immediately preceding such Distribution Date, exceeds 1.5% or (ii) the
        average of the Delinquency Percentages for the preceding three calendar
        months exceeds 2.0%, then the percentage of the Aggregate Receivables
        Balance and of the aggregate of the Starting Receivable Balances of
        Subsequent Receivables referred to in this clause (a) above, shall be
        equal to 10.0%, and

                (b)     the Specified Yield Supplement Amount for such
                        Distribution Date; and

                                    App.A-30

<PAGE>

                        (2)     2.0% of the Aggregate Starting Receivables
                Balance.

        Specified Yield Supplement Amount: for any Distribution Date, an amount
equal to the sum of

                                (i)     for each Temporary Interest Free
                Receivable transferred to the Trust prior to the opening of
                business on the first day of the Monthly Period in which such
                Distribution Date occurs, the aggregate, for each Monthly Period
                or part of a Monthly Period beginning with the Monthly Period in
                which such Distribution Date occurs during which such Temporary
                Interest Free Receivable is not accruing interest, of the
                product of (1) the scheduled balance of such Temporary Interest
                Free Receivable as of the opening of business on the first day
                of such Monthly Period assuming all payments are made as
                scheduled and no prepayments are made and (2) the result of (A)
                the Required Rate divided by (B) twelve,

                                (ii)    the greater of (1) for each Low APR
                Receivable transferred to the Trust prior to the opening of
                business on the first day of the Monthly Period in which such
                Distribution Date occurs, the aggregate, for each Monthly Period
                beginning with the Monthly Period in which such Distribution
                Date occurs through and including the Monthly Period during
                which the stated maturity date for such Low APR Receivable
                occurs, of the product of (A) the scheduled balance of such Low
                APR Receivable as of the opening of business on the first day of
                such Monthly Period assuming all payments are made as scheduled
                and no prepayments are made and (B) the result of (i) the
                Required Rate minus the APR of such Low APR Receivable divided
                by (ii) twelve, and (2) the lesser of (i) the aggregate of the
                portions of the Yield Supplement Required Deposit Amounts
                attributable to Low APR Receivables deposited into the Reserve
                Account on or prior to the last day of the related Monthly
                Period, and (ii) $50,000, and

                                (iii)   the aggregate Yield Supplement Required
                Deposit Amounts for any Subsequent Receivable transferred to the
                Trust after the last day of the related Monthly Period but on or
                prior to such Distribution Date.

        Starting Gross Receivable Balance: With respect to any Receivable as of
the applicable Cutoff Date, the Starting Receivable Balance plus, in the case of
Receivables classified by the Servicer as "finance charge - included contracts,"
the finance charges included in the Scheduled Payments.

        Starting Receivable Balance: (a) With respect to a Receivable that is a
Retail Note, the aggregate principal amount advanced under such Receivable
toward the purchase price of the Financed Vehicle or Financed Vehicles,
including insurance premiums, service and warranty contracts, federal excise and
sales taxes and other items customarily financed as part of a Retail Note and
related costs, less payments received from the Obligor prior to the Cutoff Date
with respect to such Receivable allocable on the basis of the actuarial method
to principal and (b) with respect to a Receivable that is a Retail Lease, the
remaining Scheduled Payments or purchase option price set forth in the Retail
Lease minus, without duplication, the sum of (i) Unearned

                                    App.A-31

<PAGE>

Income and (ii) payments received from the Obligor prior to the Cutoff Date with
respect to such Receivable allocable to the principal portion of the lease
payments.

        State: Any one of the 50 States of the United States of America or the
District of Columbia.

        Statutory Trust Statute: Chapter 38 of Title 12 of the Delaware Code, 12
Del. Code Section 3801 et seq., as the same may be amended from time to time.

        Subsequent Cutoff Date: Any date designated by the Seller within the
period beginning on the first day of the Monthly Period preceding the Monthly
Period in which the related Subsequent Transfer Date occurs and ending on the
Subsequent Transfer Date.

        Subsequent LPA Assignment: As defined in Section 2.02 of the Lease
Purchase Agreement.

        Subsequent Receivables: The Receivables transferred from the Seller to
the Issuer pursuant to Section 2.02 of the Pooling Agreement, which shall be
listed on the schedules to the related Subsequent Transfer PSA Assignment.

        Subsequent Transfer Date: Any date during the Funding Period on which
Subsequent Receivables are to be transferred to the Issuer and a related
Subsequent Transfer PSA Assignment is executed and delivered to the Issuer and
the Indenture Trustee pursuant to Section 2.02 of the Pooling Agreement.

        Subsequent Transfer PA Assignment: As defined in Section 2.01 of the
Purchase Agreement.

        Subsequent Transfer PSA Assignment: With respect to Subsequent
Receivables transferred to the Issuer pursuant to Section 2.02 of the Pooling
Agreement, has the meaning assigned thereto in Section 2.02(a) of the Pooling
Agreement.

        Subsequent Transferee: As defined in the Recitals to the Purchase
Agreement.

        Subsidiary: As to any Person, a corporation, partnership or other entity
of which shares of stock or other ownership interests having ordinary voting
power (other than stock or such other ownership interests having such power only
by reason of the happening of a contingency) to elect a majority of the board of
directors or other managers of such corporation, partnership or other entity are
at the time owned, or the management of which is otherwise controlled, directly
or indirectly through one or more intermediaries, or both, by such Person.

        Supplemental Servicing Fee: As defined in Section 2.09 of the Servicing
Agreement.

        Tax Opinion: With respect to any action, an Opinion of Counsel to the
effect that, for U.S. federal income tax purposes (a) such action will not cause
a taxable event with respect to any Noteholders or (b) in the case of Section
2.14 of the Indenture, the Notes of the new Series will be characterized as
debt.

                                    App.A-32

<PAGE>

        Temporary Interest Free Receivable: A Receivable that has an initial
period during which no interest accrues on such Receivable and all Scheduled
Payments are applied to the reduction of the principal amount thereof.

        Temporary Notes: The Notes specified in Section 2.3 of the Indenture.

        Titling Trust: Navistar Leasing Company, a Delaware statutory business
trust formed pursuant to the Titling Trust Agreement.

        Titling Trust Agreement: The Trust Agreement, dated as of April 15,
1999, among Harco Leasing, Bank One, National Association (formerly known as the
First National Bank of Chicago), and Bank One Delaware, Inc. (formerly known as
First Chicago Delaware, Inc.), as amended, modified or supplemented from time to
time.

        Titling Trust Assets: "Trust Assets" as defined in the Titling Trust
Agreement.

        Titling Trust Documents: The Series 2003-A Portfolio Certificate,
Titling Trust Agreement, the Titling Trust Servicing Agreement, the Collateral
Agency Agreement, the Series 2003-A Portfolio Supplement, and the Collateral
Supplement.

        Titling Trust Estate: "Trust Estate" as defined in the Titling Trust
Agreement.

        Titling Trust Interest Holder: "Holder" as defined in the Titling Trust
Agreement.

        Titling Trust Servicing Agreement: "Origination and Servicing Agreement"
as defined in the Titling Trust Agreement.

        Titling Trust Servicer Funding Advances: "Servicer Funding Advances" as
defined in the Titling Trust Agreement.

        Titling Trustees: Each of the General Interest Trustee, the Delaware
Trustee and each Portfolio Trustee.

        Total Available Amount: With respect to a Distribution Date, the sum of
the Collected Amount, all amounts deposited to the Collection Account pursuant
to Sections 8.2(b)(ii) and 8.2(b)(iii) of the Indenture for such Distribution
Date and the amount of all cash and other immediately available funds in the
Reserve Account immediately prior to such date.

        Total Servicing Fee: As defined in Section 2.09 of the Servicing
Agreement.

        TRAC Lease: A Retail Lease that provides for a TRAC Payment by the
lessee at the expiration of the lease term pursuant to a provision in the lease
that provides in substance that, at the end of the term of the lease, after the
application of the proceeds of the sale of the Financed Vehicle (whether such
sale is to the lessee, an Affiliate of the lessor or another Person) the lessee
will be obligated to pay the lessor the excess of the TRAC Payment over the sale
proceeds or the lessor will be obligated to pay the lessee the excess of the
sale proceeds over the TRAC Payment.

                                    App.A-33

<PAGE>

        TRAC Payment: With respect to a TRAC Lease, a fixed amount specified in
the lease documents for such TRAC Lease.

        Transfer Date: With respect to any Distribution Date, the Business Day
immediately preceding such Distribution Date.

        Transfer and Servicing Agreements: The Lease Purchase Agreement, the
Purchase Agreement, the Pooling Agreement, the Servicing Agreement, the Titling
Trust Agreement, the Titling Trust Servicing Agreement, the Collateral Agency
Agreement, the Series 2003-A Portfolio Supplement and the Collateral Supplement.

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

        Trust: Navistar Financial 2003-A Owner Trust, a Delaware statutory
trust, created pursuant to the Trust Agreement.

        Trust Agreement: The Trust Agreement, dated as of the Closing Date,
between the Seller and the Owner Trustee, as amended and supplemented from time
to time; such agreement being the Amended and Restated Trust Agreement
contemplated by the Trust Agreement dated May 14, 2003 between the Seller and
the Owner Trustee.

        Trust Indenture Act or TIA: The Trust Indenture Act of 1939, as amended.

        Trustees: The Owner Trustee and the Indenture Trustee.

        UCC: The Uniform Commercial Code, as in effect in the relevant
jurisdiction.

        UCC Collateral: Any property a security interest in which may be
perfected by filing under the UCC.

        Uncertificated Security: As defined under the applicable UCC as in
effect on such date.

        Underwriting Agreement: The Underwriting Agreement, dated May 20, 2003,
among Banc One Capital Markets, Inc., as representative of the several
underwriters party thereto, the Servicer and the Seller with respect to the sale
of the Notes.

        Unearned Income: With respect to any Receivable, as of any date of
determination, the portion of the Gross Balance thereof identified as unearned
income by the Servicer, in accordance with its customary applicable accounting
procedures.

        Warranty Payment: With respect to a Distribution Date and to a Warranty
Receivable repurchased as of the related Accounting Date (a) that is a Retail
Note, (i) the sum of all remaining Scheduled Payments on such Warranty
Receivable due after the Accounting Date, (ii) all past due Scheduled Payments
with respect to which a Monthly Advance has not been made,

                                    App.A-34

<PAGE>

(iii) the amount of any reimbursements made pursuant to the last sentence of
Section 2.14 of the Servicing Agreement with respect to such Warranty Receivable
and (iv) all Outstanding Monthly Advances made on such Warranty Receivable minus
(v) the Rebate minus (vi) any Liquidation Proceeds with respect to such Warranty
Receivable to the extent applied prior to the Accounting Date that are not
reflected in items (i) through (iv) and (b) that is a Retail Lease, the sum of
(i) the sum of the Scheduled Payments on the Warranty Receivable due after the
Accounting Date, including the amount of any TRAC Payment or the Obligor's
purchase option, (ii) any reimbursement made pursuant to the last sentence of
Section 2.14 of the Servicing Agreement with respect to such Warranty
Receivable, (iii) all past due Scheduled Payments with respect to which a
Monthly Advance has not been made, and (iv) all Outstanding Monthly Advances
made on the Warranty Receivable minus (v) any Unearned Income minus (vi) any
Liquidation Proceeds with respect to such Warranty Receivable to the extent
applied to the Warranty Receivable on or prior to that Accounting Date that are
not reflected in items (i) through (iv).

        Warranty Purchaser: Either (i) the Seller pursuant to Section 2.06 of
the Pooling Agreement or (ii) NFC pursuant to Section 5.04 of the Purchase
Agreement.

        Warranty Receivable: A Receivable which the Warranty Purchaser has
become obligated to repurchase pursuant to Section 2.06 of the Pooling Agreement
or Section 5.04 of the Purchase Agreement.

        Yield Supplement Required Deposit Amount: means,

                                (i)     for any Temporary Interest Free
                Receivable, an amount equal to the aggregate, for each calendar
                month or part of a calendar month after the Cutoff Date for that
                Temporary Interest Free Receivable in which that Temporary
                Temporary Interest Free Receivable is not accruing interest, of
                the product of

                                1.      the scheduled balance of that Temporary
                        Interest Free Receivable as of the opening of business
                        on the first day of that calendar month assuming all
                        Scheduled Payments are made as scheduled and no
                        prepayments are made and

                                2.      the result of (A) the Required Rate
                        divided by (B) twelve and

                                (ii)    for any Low APR Receivable, an amount
                equal to the aggregate, for each calendar month after the Cutoff
                Date for that Low APR Receivable through and including the
                calendar month during which the stated maturity date for that
                Low APR Receivable occurs, of the product of

                                1.      the scheduled balance of that Low APR
                        Receivable as of the opening of business on the first
                        day of that calendar month assuming all Scheduled
                        Payments are made as scheduled and no prepayments are
                        made and

                                2.      the result of (A) the Required Rate
                        minus the APR of that Low APR Receivable divided by (B)
                        twelve.

                                    App.A-35

<PAGE>

                                   APPENDIX A

                         PART II - RULES OF CONSTRUCTION

                (A)     Accounting Terms. As used in this Appendix or the Basic
Documents, accounting terms which are not defined, and accounting terms partly
defined, herein or therein shall have the respective meanings given to them
under generally accepted accounting principles. To the extent that the
definitions of accounting terms in this Appendix or the Basic Documents are
inconsistent with the meanings of such terms under generally accepted accounting
principles, the definitions contained in this Appendix or the Basic Documents
will control.

                (B)     "Hereof," etc.: The words "hereof," "herein" and
"hereunder" and words of similar import when used in this Appendix or any Basic
Document will refer to this Appendix or such Basic Document as a whole and not
to any particular provision of this Appendix or such Basic Document; and
Section, Schedule and Exhibit references contained in this Appendix or any Basic
Document are references to Sections, Schedules and Exhibits in or to this
Appendix or such Basic Document unless otherwise specified. The word "or" is not
exclusive.

                (C)     Use of "related" as used in this Appendix and the Basic
Documents, with respect to any Distribution Date, the "related Determination
Date," the "related Monthly Period," and the "related Record Date" will mean the
Determination Date, the Monthly Period, and the Record Date, respectively,
immediately preceding such Distribution Date. With respect to any Purchase Date,
the "related Cutoff Date" will mean the Cutoff Date established for the closing
of the purchase of receivables on that Purchase Date.

                (D)     Use of "outstanding" etc. Whenever the term "outstanding
Notes," "outstanding principal amount" and words of similar import are used in
this Appendix or any Basic Document for purposes of determining whether the
Noteholders of the requisite outstanding principal amount of the Notes have
given any request, demand, authorization, direction, notice, consent or waiver
hereunder or under any Basic Document, Notes owned by the Issuer, any other
obligor upon the Notes, the Seller or any Affiliate of any of the foregoing
Persons (it being understood that the Owner Trustee in its individual capacity
shall not be considered an Affiliate of any of the foregoing) 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
pledgor'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.

                (E)     Number and Gender. Each defined term used in this
Appendix or the Basic Documents has a comparable meaning when used in its plural
or singular form. Each

                                    App.A-36

<PAGE>

gender-specific term used in this Appendix or the Basic Documents has a
comparable meaning whether used in a masculine, feminine or gender-neutral form.

                (F)     Including. Whenever the term "including" (whether or not
that term is followed by the phrase "but not limited to" or "without limitation"
or words of similar effect) is used in this Appendix or the Basic Documents in
connection with a listing of items within a particular classification, that
listing will be interpreted to be illustrative only and will not be interpreted
as a limitation on, or exclusive listing of, the items within that
classification.

                (G)     UCC References. References to sections or provisions of
Article 9 of the UCC in any of the Basic Documents shall be deemed to be
automatically updated to reflect the successor, replacement or functionally
equivalent sections or provisions of Revised Article 9, Secured Transactions
(2000) at any time in any jurisdiction which has made such revised article
effective.

                (H)     References to a Class of Notes. Unless otherwise
specified, references to a class of Notes, includes all the tranches included in
such class of Notes.

                                    App.A-37

<PAGE>

                                   APPENDIX B

                         NOTICE ADDRESSES AND PROCEDURES

                All requests, demands, directions, consents, waivers, notices,
authorizations and communications provided or permitted under any Basic Document
to be made upon, given or furnished to or filed with the Seller, the Servicer,
the Indenture Trustee, the Issuer, the Owner Trustee or the Rating Agencies
shall be in writing, personally delivered, sent by facsimile with a copy to
follow via first class mail, overnight mail or mailed by certified mail-return
receipt requested, and shall be deemed to have been duly given upon receipt:

                1.      in the case of the Seller, at the following address:

                        Navistar Financial Retail Receivables Corporation
                        c/o Corporation Trust Company
                        1209 Orange Street
                        Wilmington, Delaware 19801

                        with a copy to:

                        Navistar Financial Corporation
                        2850 West Golf Road
                        Rolling Meadows, IL  60008
                        Attention:  General Counsel
                        Telecopy:   (847) 734-4090

                        in the case of the Servicer, at the following address:

                        Navistar Financial Corporation
                        2850 West Golf Road
                        Rolling Meadows, IL  60008
                        Attention:  General Counsel
                        Telecopy:   (847) 734-4090

                2.      in the case of the Indenture Trustee, at its Corporate
                        Trust Office,

                3.      in the case of the Issuer, to the Corporate Trust Office
                        of the Owner Trustee, with copies to:

                        Navistar Financial Retail Receivables Corporation
                        c/o Corporation Trust Company
                        1209 Orange Street
                        Wilmington, Delaware 19801

                                     App.B-1

<PAGE>

                        with a copy to:

                        Navistar Financial Corporation
                        2850 West Golf Road
                        Rolling Meadows, IL  60008
                        Attention:  General Counsel
                        Telecopy:   (847) 734-4090

                4.      in the case of Harco Leasing, at the following address,

                        Harco Leasing Company, Inc.
                        c/o Navistar Financial Corporation
                        2850 West Golf Road
                        Rolling Meadows, IL  60008
                        Attention:  General Counsel
                        Telecopy:   (847) 734-4090

                5.      in the case of the Collateral Agent, at the following
                        address,

                        The Bank of New York
                        2 North LaSalle Street
                        Suite 1020
                        Chicago, IL 60602
                        Attention: Indenture Trust Administration
                        Telecopy:   (312) 827-8562

                6.      in the case of the Titling Trust, to the General
Interest Trustee at its Corporate Trust Office (as such term is used in the
Titling Trust Agreement), with a copy to Harco Leasing and Navistar Financial.

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

                7.      in the case of the Owner Trustee, at its Corporate Trust
Office, with a copy to the Administrator at:

                        Navistar Financial Corporation
                        2850 West Golf Road
                        Rolling Meadows, IL  60008
                        Attention:  General Counsel
                        Telecopy:   (847) 734-4090

                                     App.B-2

<PAGE>

                8.      in the case of Moody's Investors Service, Inc., to:

                        Moody's Investors Service, Inc.
                        ABS Monitoring Department
                        99 Church Street
                        New York, New York 10007

                9.      in the case of Standard & Poor's Ratings Services, to:

                        Standard & Poor's Ratings Services
                        55 Water Street
                        40th Floor
                        New York, NY 10041-0003
                        Attention: Asset Backed Surveillance Department

or at such other address as shall be designated by such Person in a written
notice to the other parties to the Basic Documents to which they are party.

                Where any Basic Document provides for notice to Noteholders of
any condition or event, such notice shall be sufficiently given (unless
otherwise herein expressly provided) if it is in writing and mailed,
first-class, postage prepaid or by overnight mail to each Noteholder affected by
such condition or event, at such Person's address as it appears on the Note
Register, not later than the latest date, and not earlier than the earliest
date, prescribed in such Basic Document for the giving of such notice. If 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 Noteholders 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 regardless of whether such notice is in fact actually
received.

                                     App.B-3<PAGE>

                                                                     EXHIBIT 4.2

                                                                  Execution Copy

                      NAVISTAR FINANCIAL 2003-A OWNER TRUST

                       Class A-1 1.25% Asset Backed Notes
                       Class A-2 1.31% Asset Backed Notes
                       Class A-3 1.73% Asset Backed Notes
                       Class A-4 2.24% Asset Backed Notes
                        Class B 3.08% Asset Backed Notes

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

                                    INDENTURE

                            Dated as of June 5, 2003

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

                              The Bank of New York,
                         a New York banking corporation,
                                Indenture Trustee

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               PAGE
                                                                                                               ----
<S>                                                                                                              <C>
ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE..............................................................2
         Section 1.1 Definitions..................................................................................2
         Section 1.2 Incorporation by Reference of Trust Indenture Act............................................3

ARTICLE II THE NOTES..............................................................................................3
         Section 2.1 Form.........................................................................................3
         Section 2.2 Execution, Authentication and Delivery.......................................................4
         Section 2.3 Temporary Notes..............................................................................4
         Section 2.4 Registration; Registration of Transfer and Exchange of Notes.................................5
         Section 2.5 Mutilated, Destroyed, Lost or Stolen Notes...................................................6
         Section 2.6 Persons Deemed Noteholders...................................................................7
         Section 2.7 Payment of Principal and Interest............................................................7
         Section 2.8 Cancellation of Notes........................................................................8
         Section 2.9 Release of Collateral........................................................................9
         Section 2.10 Book-Entry Notes............................................................................9
         Section 2.11 Notices to Clearing Agency.................................................................10
         Section 2.12 Definitive Notes...........................................................................10
         Section 2.13 Seller as Noteholder.......................................................................10
         Section 2.14 Tax Treatment..............................................................................10

ARTICLE III COVENANTS............................................................................................10
         Section 3.1 Payment of Principal and Interest...........................................................10
         Section 3.2 Maintenance of Agency Office................................................................11
         Section 3.3 Money for Payments To Be Held in Trust......................................................11
         Section 3.4 Existence...................................................................................12
         Section 3.5 Protection of Collateral; Acknowledgment of Pledge..........................................13
         Section 3.6 Opinions as to Collateral...................................................................13
         Section 3.7 Performance of Obligations; Servicing of Receivables........................................14
         Section 3.8 Negative Covenants..........................................................................15
         Section 3.9 Annual Statement as to Compliance...........................................................15
         Section 3.10 Consolidation, Merger, etc., of the Issuer; Disposition of Trust Assets....................16
         Section 3.11 Successor or Transferee....................................................................18
         Section 3.12 No Other Business..........................................................................18
         Section 3.13 No Borrowing...............................................................................18
         Section 3.14 Guarantees, Loans, Advances and Other Liabilities..........................................18
         Section 3.15 Servicer's Obligations.....................................................................18
         Section 3.16 Capital Expenditures.......................................................................19
         Section 3.17 Removal of Administrator...................................................................19
         Section 3.18 Restricted Payments........................................................................19
         Section 3.19 Notice of Events of Default................................................................19
         Section 3.20 Further Instruments and Acts...............................................................19
</TABLE>

                                      - i -

<PAGE>

<TABLE>
<S>                                                                                                              <C>
         Section 3.21 Indenture Trustee's Assignment of Administrative Receivables and Warranty Receivables......19
         Section 3.22 Representations and Warranties by the Issuer to the Indenture Trustee......................20

ARTICLE IV SATISFACTION AND DISCHARGE............................................................................20
         Section 4.1 Satisfaction and Discharge of Indenture.....................................................20
         Section 4.2 Application of Trust Money..................................................................22
         Section 4.3 Repayment of Monies Held by Paying Agent....................................................22
         Section 4.4 Duration of Position of Indenture Trustee for Benefit of Certificateholders.................22

ARTICLE V DEFAULT AND REMEDIES...................................................................................22
         Section 5.1 Events of Default...........................................................................22
         Section 5.2 Acceleration of Maturity; Rescission and Annulment..........................................23
         Section 5.3 Collection of Indebtedness and Suits for Enforcement by Indenture Trustee...................24
         Section 5.4 Remedies; Priorities........................................................................26
         Section 5.5 Optional Preservation of the Collateral.....................................................27
         Section 5.6 Limitation of Suits.........................................................................27
         Section 5.7 Unconditional Rights of Noteholders To Receive Principal and Interest.......................28
         Section 5.8 Restoration of Rights and Remedies..........................................................28
         Section 5.9 Rights and Remedies Cumulative..............................................................28
         Section 5.10 Delay or Omission Not a Waiver.............................................................28
         Section 5.11 Control by Noteholders.....................................................................29
         Section 5.12 Waiver of Past Defaults....................................................................29
         Section 5.13 Undertaking for Costs......................................................................30
         Section 5.14 Waiver of Stay or Extension Laws...........................................................30
         Section 5.15 Action on Notes............................................................................30
         Section 5.16 Performance and Enforcement of Certain Obligations.........................................30

ARTICLE VI THE INDENTURE TRUSTEE.................................................................................31
         Section 6.1 Duties of Indenture Trustee.................................................................31
         Section 6.2 Rights of Indenture Trustee.................................................................32
         Section 6.3 Indenture Trustee May Own Notes.............................................................33
         Section 6.4 Indenture Trustee's Disclaimer..............................................................33
         Section 6.5 Notice of Defaults..........................................................................33
         Section 6.6 Reports by Indenture Trustee to Holders.....................................................33
         Section 6.7 Compensation; Indemnity.....................................................................34
         Section 6.8 Replacement of Indenture Trustee............................................................34
         Section 6.9 Merger or Consolidation of Indenture Trustee................................................35
         Section 6.10 Appointment of Co-Indenture Trustee or Separate Indenture Trustee..........................35
         Section 6.11 Eligibility; Disqualification..............................................................37
         Section 6.12 Preferential Collection of Claims Against Issuer...........................................38
         Section 6.13 Representations and Warranties of Indenture Trustee........................................38
         Section 6.14 Indenture Trustee May Enforce Claims Without Possession of Notes...........................38
</TABLE>

                                     - ii -

<PAGE>

<TABLE>
<S>                                                                                                              <C>
         Section 6.15 Suit for Enforcement.......................................................................39
         Section 6.16 Rights of Noteholders to Direct Indenture Trustee..........................................39

ARTICLE VII NOTEHOLDERS' LISTS AND REPORTS.......................................................................39
         Section 7.1 Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders......................39
         Section 7.2 Preservation of Information, Communications to Noteholders..................................39
         Section 7.3 Reports by Issuer...........................................................................40
         Section 7.4 Reports by Indenture Trustee................................................................40

ARTICLE VIII ACCOUNTS, DISBURSEMENTS AND RELEASES................................................................41
         Section 8.1 Collection of Money.........................................................................41
         Section 8.2 Designated Accounts; Payments...............................................................41
         Section 8.3 General Provisions Regarding Accounts.......................................................45
         Section 8.4 Release of Collateral.......................................................................45
         Section 8.5 Opinion of Counsel..........................................................................46
         Section 8.6 Investment Earnings and Supplemental Servicing Fees.........................................46
         Section 8.7 Net Deposits................................................................................46
         Section 8.8 Statements to Securityholders...............................................................47
         Section 8.9 Designated Accounts.........................................................................48
         Section 8.10 Reserve Account............................................................................49
         Section 8.11 Pre-Funding Account........................................................................49
         Section 8.12 Negative Carry Account.....................................................................50
         Section 8.13 Sale of Assets; Termination................................................................50

ARTICLE IX SUPPLEMENTAL INDENTURES...............................................................................51
         Section 9.1 Supplemental Indentures Without Consent of Noteholders......................................51
         Section 9.2 Supplemental Indentures With Consent of Noteholders.........................................52
         Section 9.3 Execution of Supplemental Indentures........................................................54
         Section 9.4 Effect of Supplemental Indenture............................................................54
         Section 9.5 Conformity with Trust Indenture Act.........................................................54
         Section 9.6 Reference in Notes to Supplemental Indentures...............................................54

ARTICLE X REDEMPTION OF NOTES....................................................................................55
         Section 10.1 Redemption.................................................................................55
         Section 10.2 Form of Redemption Notice..................................................................55
         Section 10.3 Notes Payable on Redemption Date...........................................................56

ARTICLE XI MISCELLANEOUS.........................................................................................56
         Section 11.1 Compliance Certificates and Opinions, etc..................................................56
         Section 11.2 Form of Documents Delivered to Indenture Trustee...........................................58
         Section 11.3 Acts of Noteholders........................................................................58
         Section 11.4 Notices, etc., to Indenture Trustee, Issuer and Rating Agencies............................59
         Section 11.5 Notices to Noteholders; Waiver.............................................................59
         Section 11.6 Alternate Payment and Notice Provisions....................................................59
         Section 11.7 Conflict with Trust Indenture Act..........................................................60
         Section 11.8 Effect of Headings and Table of Contents...................................................60
</TABLE>

                                     - iii -

<PAGE>

<TABLE>
<S>                                                                                                              <C>
         Section 11.9 Successors and Assigns.....................................................................60
         Section 11.10 Separability..............................................................................60
         Section 11.11 Benefits of Indenture.....................................................................60
         Section 11.12 Legal Holidays............................................................................60
         Section 11.13 Governing Law.............................................................................60
         Section 11.14 Counterparts..............................................................................61
         Section 11.15 Recording of Indenture....................................................................61
         Section 11.16 No Recourse...............................................................................61
         Section 11.17 No Petition...............................................................................61
         Section 11.18 Inspection................................................................................62
</TABLE>

Exhibit A-   Locations of Composite Schedule of Receivables
Exhibit B-   Form of Class A-1 Asset Backed Note
Exhibit C-   Form of Class A-2, Class A-3, Class A-4 and Class B Asset Backed
             Note

                                     - iv -

<PAGE>

                INDENTURE, dated as of June 5, 2003 between NAVISTAR FINANCIAL
2003-A OWNER TRUST, a Delaware statutory trust (the "Issuer"), and THE BANK OF
NEW YORK, a New York banking corporation, 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 Notes and (only to
the extent expressly provided herein) the Certificateholders:

                                 GRANTING CLAUSE

                The Issuer hereby grants to the Indenture Trustee on the Closing
Date, as trustee for the benefit of the Noteholders and (only to the extent
expressly provided herein) the Certificateholders, all of the Issuer's right,
title and interest in, to and under (a) the Receivables listed on the Composite
Schedule of Receivables which is on file at the locations listed on Exhibit A
hereto, whether now existing or hereafter acquired and including, without
limitation, Subsequent Receivables acquired by the Issuer pursuant to the
Pooling Agreement listed on the schedules to the Subsequent Transfer PSA
Assignments with respect to such Subsequent Receivables and all Related
Security; (b) the Collection Account and the Note Distribution Account and all
funds on deposit from time to time in the Collection Account and the Note
Distribution Account; (c) the Reserve Account and all proceeds thereof (other
than the Investment Earnings thereon), including all other amounts, investments
and investment property held from time to time in the Reserve Account (whether
in the form of deposit accounts, Physical Property, book-entry securities,
uncertificated securities, or otherwise); (d) the Reserve Account Initial
Deposit with respect to the Closing Date and the Reserve Account Subsequent
Transfer Deposit with respect to each Subsequent Transfer Date and all proceeds
thereof (other than the Investment Earnings thereon) (c) and (d), collectively,
the "Reserve Account Property"); (e) the Pre-Funding Account and all funds on
deposit from time to time in the Pre-Funding Account and all proceeds thereof,
including all other amounts and investments held from time to time in the
Pre-Funding Account (whether in the form of deposit accounts, Physical Property,
book-entry securities, uncertificated securities or otherwise) (collectively,
the "Pre-Funding Account Property"); (f) the Negative Carry Account and all
funds on deposit from time to time in the Negative Carry Account and all
proceeds thereof (other than the Investment Earnings thereon), including all
other amounts, investments and investment property held from time to time in the
Negative Carry Account (whether in the form of deposit accounts, Physical
Property, book-entry securities, uncertificated securities or otherwise); (g)
the Pooling Agreement (including all rights of NFRRC under the Purchase
Agreement, the Initial PA Assignment and any Subsequent Transfer PA Assignments
assigned to the Issuer pursuant to the Pooling Agreement); (h) the Servicing
Agreement; (i) the rights of NFC under the Lease Purchase Agreement, the Initial
LPA Assignment and any Subsequent Transfer LPA Assignment assigned to NFRRC
pursuant to the Purchase Agreement and then to the Issuer pursuant to the
Pooling Agreement; (j) the Titling Trust Documents, including the Series 2003-A
Portfolio Certificate, the Series 2003-A Portfolio Interest and the beneficial
interest in the Series 2003-A Portfolio Assets; (k) all Collections; and (l) all
present and future claims, demands, causes and choses in action in respect of
any or all of the foregoing and all payments on or under and all proceeds of
every kind and nature whatsoever in respect of any or all of the foregoing,
including all proceeds of the conversion, voluntary or involuntary, into cash or
other liquid property, all cash proceeds, accounts, accounts receivable,

<PAGE>

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 (a) first, the
payment of principal of and interest on, and any other amounts owing in respect
of, the Class A Notes, equally and ratably without prejudice, priority or
distinction, subject to the priority set forth in Section 8.2(d) of this
Indenture, and (b) second, the payment of principal of and interest on, and any
other amounts owing in respect of, the Class B Notes, equally and ratably
without prejudice, priority or distinction, and to secure compliance with the
provisions of this Indenture, all as provided in this Indenture. This Indenture
constitutes a security agreement under the UCC.

                The foregoing Grant includes all rights, powers and options (but
none of the obligations, if any) of the Issuer under any agreement or instrument
included in the Collateral, including the immediate and continuing right to
claim for, collect, receive and give receipt for principal, interest and lease
payments and other Scheduled Payments in respect of the Receivables included in
the Collateral and all other monies payable under the Collateral, 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
Issuer or otherwise and generally to do and receive anything that the Issuer is
or may be entitled to do or receive under or with respect to the Collateral.

                The Indenture Trustee, as trustee on behalf of the Noteholders
and (only to the extent expressly provided herein) the Certificateholders,
acknowledges such Grant and accepts the trusts under this Indenture in
accordance with the provisions of this Indenture.

                                    ARTICLE I
                   DEFINITIONS AND INCORPORATION BY REFERENCE

                Section 1.1 Definitions. Certain capitalized terms used in this
Indenture shall have the respective meanings assigned them in Part I of Appendix
A to the Pooling Agreement of even date herewith between the Issuer and NFRRC
(as it may be amended, supplemented or modified from time to time, the "Pooling
Agreement"). All references herein to "the Indenture" or "this Indenture" are to
this Indenture as it may be amended, supplemented or modified from time to time,
the exhibits hereto and the capitalized terms used herein which are defined in
such Appendix A. All references herein to Articles, Sections, subsections and
exhibits are to Articles, Sections, subsections and exhibits contained in or
attached to this Indenture unless otherwise specified. All terms defined in this
Indenture shall have the defined meanings when used in any certificate, notice,
Note or other document made or delivered pursuant hereto unless otherwise
defined therein. The rules of construction set forth in Part II of such Appendix
A shall be applicable to this Indenture.

                                      - 2 -

<PAGE>

                Section 1.2 Incorporation by Reference of Trust Indenture Act.
Whenever this Indenture refers to a provision of the TIA, such 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" means the Indenture Trustee.

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

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

                                   ARTICLE II
                                    THE NOTES

                Section 2.1 Form.

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

                        (b)     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.

                        (c)     Each Note shall be dated the date of its
authentication. The terms of each class of Notes as provided for in Exhibit B
and Exhibit C hereto are part of the terms of this Indenture.

                                      - 3 -

<PAGE>

                Section 2.2 Execution, Authentication and Delivery.

                        (a)     Each Note shall be dated the date of its
authentication, and shall be issuable as a registered Note in the minimum
denomination of $1,000 and in integral multiples thereof (except, if applicable,
for one Note representing a residual portion of each class which may be issued
in a different denomination).

                        (b)     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.

                        (c)     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 office prior to the authentication and delivery of such Notes or did
not hold such office at the date of such Notes.

                        (d)     The Indenture Trustee shall upon Issuer Order
authenticate and deliver to or upon the order of the Issuer, the Notes for
original issue in aggregate principal amount of $500,000,000, comprised of (i)
Class A-1 Notes in the aggregate principal amount of $85,000,000, (ii) Class A-2
Notes in the aggregate principal amount of $175,000,000, (iii) Class A-3 Notes
in the aggregate principal amount of $113,000,000, (iv) Class A-4 Notes in the
aggregate principal amount of $108,250,000, and (v) Class B Notes in the
aggregate principal amount of $18,750,000. The aggregate principal amount of all
Notes outstanding at any time may not exceed $500,000,000 except as provided in
Section 2.5.

                        (e)     No Notes 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 set
forth, in the case of the Class A-1 Notes, in Exhibit B, and in the case of the
Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes and the Class B Notes,
in Exhibit C, executed by the Indenture Trustee by the manual 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 2.3 Temporary Notes.

                        (a)     Pending the preparation of Definitive Notes, if
any, the Issuer may execute, and upon receipt of an Issuer Order the Indenture
Trustee shall authenticate and deliver, such Temporary Notes which are printed,
lithographed, typewritten, mimeographed or otherwise produced, of the tenor of
the Definitive Notes in lieu of which they are issued and with such variations
as are consistent with the terms of this Indenture as the officers executing
such Notes may determine, as evidenced by their execution of such Notes.

                        (b)     If Temporary Notes are issued, the Issuer shall
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 Agency Office of
the Issuer to be maintained as provided in Section 3.2, without charge to the
Noteholder. 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

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<PAGE>

therefor a like principal amount of Definitive Notes of authorized
denominations. Until so delivered in exchange, the Temporary Notes shall in all
respects be entitled to the same benefits under this Indenture as Definitive
Notes.

                Section 2.4 Registration; Registration of Transfer and Exchange
of Notes.

                        (a)     The Issuer shall cause to be kept the Note
Register, comprising separate registers for each class of Notes, in which,
subject to such reasonable regulations as the Issuer may prescribe, the Issuer
shall provide for the registration of the Notes and the registration of
transfers and exchanges of the Notes. The Indenture Trustee shall initially be
the Note Registrar for the purpose of registering the Notes and transfers of the
Notes as herein provided. Upon any resignation of any Note Registrar, the Issuer
shall promptly appoint a successor Note Registrar or, if it elects not to make
such an appointment, assume the duties of the Note Registrar.

                        (b)     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. The
Indenture Trustee shall have the right to inspect the Note Register at all
reasonable times and to obtain copies thereof. 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 Noteholders
and the principal amounts and number of such Notes.

                        (c)     Upon surrender for registration of transfer of
any Note at the Corporate Trust Office of the Indenture Trustee or the Agency
Office of the Issuer (and following the delivery, in the former case, of such
Notes to the Issuer by the Indenture Trustee), the Issuer shall execute, the
Indenture Trustee shall authenticate and the Noteholder shall obtain from the
Indenture Trustee, in the name of the designated transferee or transferees, one
or more new Notes in any authorized denominations, of a like aggregate principal
amount.

                        (d)     At the option of the Noteholder, 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 the Corporate Trust Office of the Indenture Trustee or the Agency Office of
the Issuer (and following the delivery, in the former case, of such Notes to the
Issuer by the Indenture Trustee), 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.

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

                        (f)     Every Note presented or surrendered for
registration of transfer or exchange shall be duly endorsed by, or be
accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee and the Note Registrar, duly executed by the Holder

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thereof or such Holder's attorney duly authorized in writing, with such
signature guaranteed by a commercial bank or trust company located, or having a
correspondent located, in the City of New York or the city in which the
Corporate Trust Office of the Indenture Trustee is located, or by a member firm
of a national securities exchange, and such other documents as the Indenture
Trustee may require.

                        (g)     No service charge shall be made to a Holder for
any registration of transfer or exchange of Notes, but the Issuer or Indenture
Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any registration of
transfer or exchange of Notes, other than exchanges pursuant to Section 2.3 or
Section 9.6 not involving any transfer.

                        (h)     The preceding provisions of this Section 2.4
notwithstanding, the Issuer shall not be required to transfer or make exchanges,
and the Note Registrar need not register transfers or exchanges, of Notes that:
(i) have been selected for redemption pursuant to Article X, if applicable; or
(ii) are due for repayment in full within 15 days of surrender to the Corporate
Trust Office or the Agency Office.

                Section 2.5 Mutilated, Destroyed, Lost or Stolen Notes.

                        (a)     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 protected purchaser, the Issuer shall
execute and upon the Issuer's 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 a like class and aggregate principal
amount; provided, however, that if any such destroyed, lost or stolen Note, but
not a mutilated Note, shall have become or within seven days shall be due and
payable in full, or shall have been called for redemption, instead of issuing a
replacement Note, the Issuer may make payment to the Holder of such destroyed,
lost or stolen Note when so due or payable or upon the Redemption Date, if
applicable, without surrender thereof.

                        (b)     If, after the delivery of a replacement Note or
payment in respect of a destroyed, lost or stolen Note pursuant to subsection
(a), any protected 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 (i) any Person to whom it was delivered, (ii) the Person
taking such replacement Note from the Person to whom such replacement Note was
delivered or (iii) any assignee of such Person, except any protected purchaser,
and the Issuer and the Indenture Trustee 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.

                        (c)     In connection with the issuance of any
replacement Note under this Section 2.5, the Issuer may require the payment by
the Holder of such Note of a sum sufficient to

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cover any tax or other governmental charge that may be imposed in relation
thereto and any other reasonable expenses (including all fees and expenses of
the Indenture Trustee) connected therewith.

                        (d)     Any duplicate Note issued pursuant to this
Section 2.5 in replacement for 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 found at
any time or be enforced by any Person, and shall be entitled to all the benefits
of this Indenture equally and proportionately with any and all other Notes duly
issued hereunder.

                        (e)     The provisions of this Section 2.5 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 2.6 Persons Deemed Noteholders. Prior to due presentment
for registration of transfer of any Note, the Issuer, the Indenture Trustee and
any of their agents may treat the Person in whose name any Note is registered
(as of the day of determination) as the Noteholder for the purpose of receiving
payments of principal of and interest on such Note and for all other purposes
whatsoever, whether or not such Note be overdue, and neither the Issuer, the
Indenture Trustee nor any agent of the Issuer or the Indenture Trustee shall be
affected by notice to the contrary.

                Section 2.7 Payment of Principal and Interest.

                        (a)     Interest on the Class A-1 Notes shall accrue in
the manner set forth in Exhibit B at the applicable Interest Rate for such
class, and such interest shall be payable on each Distribution Date, in
accordance with the priorities set forth in Section 8.2(d), as specified in the
form of Note set forth in Exhibit B. Interest on the Class A-2 Notes, the Class
A-3 Notes, the Class A-4 Notes and the Class B Notes shall accrue in the manner
set forth in Exhibit C at the applicable Interest Rate for such class, and shall
be payable on each Distribution Date, in accordance with the priorities set
forth in Section 8.2(d), as specified in the form of Note set forth in Exhibit
C. Any installment of interest payable on any Note shall be punctually paid or
duly provided for by a deposit by or at the direction of the Issuer or the
Servicer into the Note Distribution Account before each Distribution Date for
payment to Noteholders on the related Distribution Date and shall be paid to the
Person in whose name such Note (or one or more Predecessor Notes) is registered
on the applicable Record Date, by check mailed first-class, postage prepaid to
such Person's address as it appears on the Note Register on such Record Date;
provided, however, that, unless and until Definitive Notes have been issued
pursuant to Section 2.12, with respect to Notes registered on the applicable
Record Date in the name of the Note Depository (initially, Cede & Co.), payment
shall be made by wire transfer in immediately available funds to the account
designated by the Note Depository.

                        (b)     Prior to the occurrence of an Event of Default
and a declaration in accordance with Section 5.2(a) that the Notes have become
immediately due and payable, the principal of each class of Notes shall be
payable in full on the Final Scheduled Distribution Date for such class and, to
the extent of funds available therefor, in instalments on the Distribution

                                      - 7 -

<PAGE>

Dates (if any) preceding the Final Scheduled Distribution Date for such class,
in the amounts and in accordance with the priorities set forth in Section
8.2(d)(ii) or (iii), as applicable, and, if applicable, Section 8.2(e). All
principal payments on each class of Notes shall be made pro rata to the
Noteholders of such class entitled thereto. Any instalment of principal payable
on any Note shall be punctually paid or duly provided for by a deposit by the
Indenture Trustee in accordance with the provisions of Section 8.2 into the Note
Distribution Account prior to the applicable Distribution Date and shall be paid
to the Person in whose name such Note (or one or more Predecessor Notes) is
registered on the applicable Record Date, by check mailed first-class, postage
prepaid to such Person's address as it appears on the Note Register on such
Record Date; provided, however, that, unless and until Definitive Notes have
been issued pursuant to Section 2.12, with respect to Notes registered on the
Record Date in the name of the Note Depository, payment shall be made by wire
transfer in immediately available funds to the account designated by the Note
Depository, except for: (i) the final instalment of principal on any Note; and
(ii) the Redemption Price for the Notes redeemed pursuant to Section 10.1,
which, in each case, shall be payable as provided herein. The funds represented
by any such checks in respect of interest or principal returned undelivered
shall be held in accordance with Section 3.3.

                        (c)     [Reserved.]

                        (d)     From and after the occurrence of an Event of
Default and a declaration in accordance with Section 5.2(a) that the Notes have
become immediately due and payable, principal on the Notes shall be payable as
provided in Section 8.2(d)(iv) or (v), as applicable and, if applicable, Section
8.2(e).

                        (e)     With respect to any Distribution Date on which
the final instalment of principal and interest on a class of Notes is to be
paid, the Indenture Trustee shall notify each Noteholder of such class of record
as of the Record Date for such Distribution Date of the fact that the final
instalment of principal of and interest on such Note is to be paid on such
Distribution Date. Such notice shall be sent (i) on such Record Date by
facsimile, if Book-Entry Notes are outstanding; or (ii) not later than three
Business Days after such Record Date in accordance with Section 11.5(a) if
Definitive Notes are outstanding, and shall specify that such final instalment
shall 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 instalment and the manner in which such payment shall be made. Notices
in connection with redemptions of Notes shall be mailed to Noteholders as
provided in Section 10.2. Within sixty days of the surrender pursuant to this
Section 2.7(e) or cancellation pursuant to Section 2.8 of all of the Notes of a
particular class, the Indenture Trustee shall provide each of the Rating
Agencies with written notice stating that all Notes of such class have been
surrendered or canceled.

                Section 2.8 Cancellation of Notes. All Notes surrendered for
payment, redemption, exchange or registration of transfer 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 2.8, except as
expressly permitted by this Indenture. All

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<PAGE>

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 returned to it;
provided, however, that such Issuer Order is timely and the Notes have not been
previously disposed of by the Indenture Trustee. The Indenture Trustee shall
certify to the Issuer that surrendered Notes have been duly canceled and
retained or destroyed, as the case may be.

                Section 2.9 Release of Collateral. The Indenture Trustee shall
release property from the lien of this Indenture, other than as permitted by
Sections 3.21, 8.2, 8.4 and 11.1, only upon receipt of an Issuer Request
accompanied by an Officers' Certificate, an Opinion of Counsel (to the extent
required by the TIA) and Independent Certificates in accordance with TIA
Sections314(c) and 314(d)(1).

                Section 2.10 Book-Entry Notes. The Notes, upon original
issuance, shall be issued in the form of a typewritten Note or Notes
representing the Book-Entry Notes, to be delivered to The Depository Trust
Company, the initial Clearing Agency by or on behalf of the Issuer. Such Note or
Notes shall be registered on the Note Register in the name of the Note
Depository (initially, Cede & Co.), and no Note Owner shall receive a Definitive
Note representing such Note Owner's interest in such Note, except as provided in
Section 2.12. Unless and until Definitive Notes have been issued to the Note
Owners pursuant to Section 2.12:

                        (a)     the provisions of this Section 2.10 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 Notes and
the giving of instructions or directions hereunder) as the sole holder of the
Notes and shall have no obligation to the Note Owners;

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

                        (d)     the rights of the 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 and unless and until Definitive Notes are issued
pursuant to Section 2.12, the initial Clearing Agency shall make book-entry
transfers between the Clearing Agency Participants and receive and transmit
payments of principal of and interest on the Notes to such Clearing Agency
Participants, pursuant to the Note Depository Agreement; and

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

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                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 Note Owners pursuant to
Section 2.12, the Indenture Trustee shall give all such notices and
communications specified herein to be given to Noteholders to the Clearing
Agency and shall have no other obligation to the Note Owners.

                Section 2.12 Definitive Notes.

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

                Section 2.13  Seller as Noteholder. The Seller in its individual
or any other capacity may become the owner or pledgee of Notes and may otherwise
deal with the Issuer or its affiliates with the same rights it would have if it
were not the Seller.

                Section 2.14  Tax Treatment. The Issuer in entering into this
Indenture, and the Noteholders and the Note Owners, by acquiring any Note or
interest therein, (i) express their intention that the Notes qualify under
applicable tax law as indebtedness secured by the Collateral, and (ii) unless
otherwise required by appropriate taxing authorities, agree to treat the Notes
as indebtedness secured by the Collateral for the purpose of federal income
taxes, state and local income and franchise taxes, and any other taxes imposed
upon, measured by or based upon gross or net income.

                                   ARTICLE III
                                    COVENANTS

                Section 3.1 Payment of Principal and Interest. The Issuer shall
duly and punctually pay the principal of and interest on the Notes in accordance
with the terms of the Notes and this Indenture. On each Distribution Date and on
the Redemption Date (if applicable), the Indenture Trustee shall distribute
amounts on deposit in the Note Distribution Account to the Noteholders in
accordance with Sections 2.7 and 8.2, less amounts properly withheld under the

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<PAGE>

Code by any Person from a payment to any Noteholder of interest and/or
principal. Any amounts so withheld shall be considered as having been paid by
the Issuer to such Noteholder for all purposes of this Indenture.

                Section 3.2 Maintenance of Agency Office. As long as any of the
Notes remains outstanding, the Issuer shall maintain in the Borough of
Manhattan, the City of New York, an office (the "Agency Office"), being an
office or agency where Notes may be surrendered to the Issuer for registration
of transfer or exchange, and where notices and demands to or upon the Issuer in
respect of the Notes and this Indenture may be served. The Issuer hereby
initially appoints the Indenture Trustee to serve as its agent for the foregoing
purposes. The Issuer shall give prompt written notice to the Indenture Trustee
of the location, and of any change in the location, of the Agency Office. 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 of the
Indenture Trustee, and the Issuer hereby appoints the Indenture Trustee as its
agent to receive all such surrenders, notices and demands.

                Section 3.3 Money for Payments To Be Held in Trust

                        (a)     As provided in Section 8.2, all payments of
amounts due and payable with respect to any Notes that are to be made from
amounts withdrawn from the Note Distribution Account pursuant to Section 8.2(d),
(e) or (f) shall be made on behalf of the Issuer by the Indenture Trustee or by
another Paying Agent, and no amounts so withdrawn from the Note Distribution
Account for payments of Notes shall be paid over to the Issuer except as
provided in this Section 3.3.

                        (b)     Before each Distribution Date or the Redemption
Date (if applicable), the Indenture Trustee shall deposit in the Note
Distribution Account an aggregate sum sufficient to pay the amounts then
becoming due with respect to the Notes, such sum to be held in trust for the
benefit of the Persons entitled thereto.

                        (c)     The Issuer shall cause each Paying Agent other
than the Indenture Trustee to execute and deliver to the Indenture Trustee an
instrument in which such Paying Agent shall agree with the Indenture Trustee
(and if the Indenture Trustee acts as Paying Agent, it hereby so agrees),
subject to the provisions of this Section 3.3, that such Paying Agent shall:

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

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

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

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<PAGE>

                                (iv)    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 if at any time it ceases to meet the standards
        required to be met by a Paying Agent in effect at the time of
        determination; and

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

                        (d)     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.

                        (e)     Subject to applicable laws with respect to
escheat of funds, any money held by the Indenture Trustee or any Paying Agent in
trust for the payment of any amount due with respect to any Note and remaining
unclaimed for one year after such amount has become due and payable shall be
discharged from such trust and be paid by the Indenture Trustee to the Issuer on
Issuer Request; and the Holder of such Note shall thereafter, as an unsecured
general creditor, look only to the Issuer for payment thereof (but only to the
extent of the amounts so paid to the Issuer), and all liability of the Indenture
Trustee or such Paying Agent with respect to such trust money shall thereupon
cease; provided, however, that the Indenture Trustee or such Paying Agent,
before being required to make any such payment, may at the expense of the Issuer
cause to be published once, in a newspaper published in the English language,
customarily published on each Business Day and of general circulation in 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 shall be
paid to the Issuer. The Indenture Trustee may also adopt and employ, at the
expense of the Issuer, any other reasonable means of notification of such
payment (including, but not limited to, mailing notice of such payment to
Holders whose Notes have been called but have not been surrendered for
redemption or whose right to or interest in monies due and payable but not
claimed is determinable from the records of the Indenture Trustee or of any
Paying Agent, at the last address of record for each such Holder).

                Section 3.4 Existence.  The Issuer shall keep in full effect its
existence, rights and franchises as a statutory trust under the laws of the
State of Delaware (unless it becomes, or any successor Issuer hereunder is or
becomes, organized under the laws of any other State or of the United States of
America, in which case the Issuer shall keep in full effect its existence,
rights and franchises under the laws of such other jurisdiction) and shall
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 Collateral.

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                Section 3.5 Protection of Collateral; Acknowledgment of Pledge.
The Issuer shall from time to time execute and deliver all such supplements and
amendments hereto and all such financing statements, amendments thereto,
continuation statements, assignments, certificates, instruments of further
assurance and other instruments, and shall take such other action as may be
determined to be necessary or advisable in an Opinion of Counsel to the Owner
Trustee delivered to the Indenture Trustee to:

                        (i)     maintain or preserve the lien and security
        interest (and the priority thereof) of this Indenture or carry out more
        effectively the purposes hereof including by making the necessary
        filings of financing statements or amendments thereto within sixty days
        after the occurrence of any of the following: (A) any change in the name
        of the Issuer (or its successor), (B) any change in the jurisdiction of
        formation of the Issuer (or its successor) and (C) any merger or
        consolidation or other change in the identity or organizational
        structure of the Issuer and by promptly notifying the Indenture Trustee
        of any such filings;

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

                        (iii)   enforce the rights of the Indenture Trustee and
        the Noteholders in any of the Collateral; or

                        (iv)    preserve and defend title to the Collateral and
        the rights of the Indenture Trustee and the Noteholders in such
        Collateral against the claims of all Persons and parties, and the Issuer
        hereby authorizes the Indenture Trustee to execute and file any
        financing statement, continuation statement or other instrument required
        by the Indenture Trustee pursuant to this Section 3.5.

                Section 3.6 Opinions as to Collateral.

                        (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 recording and
filing of this Indenture, any indentures supplemental hereto and any other
requisite documents, and with respect to the execution and filing of any
financing statements and continuation statements as are necessary to perfect and
make effective the lien and security interest of this Indenture and reciting the
details of such action, or stating that, in the opinion of such counsel, no such
action is necessary to make such lien and security interest effective.

                        (b)     On or before April 15 in each calendar year,
beginning April 15, 2004, 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 recording, filing, re-recording and
refiling of this Indenture, any indentures supplemental hereto and any other
requisite documents and with respect to the execution and filing of any
financing statements and continuation statements as is necessary to maintain the
lien and security interest created by this Indenture and reciting the details of
such action or stating that in the opinion of such counsel no such action is
necessary to maintain the lien and security interest created by this Indenture.
Such

                                     - 13 -

<PAGE>

Opinion of Counsel shall also describe the recording, filing, re-recording and
refiling of this Indenture, any indentures supplemental hereto and any other
requisite documents and the execution and filing of any financing statements and
continuation statements that will, in the opinion of such counsel, be required
to maintain the lien and security interest of this Indenture until April 15 in
the following calendar year.

                Section 3.7 Performance of Obligations; Servicing of
Receivables.

                        (a)     The Issuer shall not take any action and shall
use its reasonable efforts not to permit any action to be taken by others that
would release any Person from any of such Person's material covenants or
obligations under any instrument or agreement included in the Collateral or that
would result in the amendment, hypothecation, subordination, termination or
discharge of, or impair the validity or effectiveness of, any such instrument or
agreement, except as otherwise expressly provided in this Indenture, the Pooling
Agreement, the Servicing Agreement, the Purchase Agreement, the Administration
Agreement or such other instrument or 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 the Basic
Documents or an Officers' 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 shall punctually perform and observe
all of its obligations and agreements contained in this Indenture, the Basic
Documents and in the instruments and agreements included in the Collateral,
including but not limited to filing or causing to be filed all UCC financing
statements and continuation statements required to be filed under the terms of
this Indenture, the Pooling Agreement and the Purchase Agreement in accordance
with and within the time periods provided for herein and therein.

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

                        (e)     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 shall not
consent so as to permit NFRRC, NFC, or Harco Leasing to, without the prior
written consent of the Indenture Trustee or the Holders of at least a majority
in Outstanding Amount of the Controlling Class, as required in accordance with
the terms thereof, amend, modify, waive, supplement, terminate or surrender, or
agree to any amendment, modification, supplement, termination, waiver or
surrender of, the terms of any Collateral or any of the Basic Documents, or
waive timely performance or observance by the

                                     - 14 -

<PAGE>

Seller under the Pooling Agreement or the Purchase Agreement, the Servicer under
the Servicing Agreement, the Administrator under the Administration Agreement,
NFC under the Purchase Agreement or Harco Leasing under the Lease Purchase
Agreement, except as specifically permitted under these documents; provided,
however, that, notwithstanding the foregoing, no action specified in the proviso
to Section 9.2(a) shall be taken except in compliance with Section 9.2. 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 do so, 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.

                Section 3.8 Negative Covenants. So long as any Notes are
Outstanding, the Issuer shall not:

                        (a)     sell, transfer, exchange or otherwise dispose of
any of the properties or assets of the Issuer, except the Issuer may (i)
collect, liquidate, sell or otherwise dispose of Receivables (including Warranty
Receivables, Administrative Receivables and Liquidating Receivables), (ii) make
cash payments out of the Designated Accounts and the Certificate Distribution
Account and (iii) take other actions, in each case as contemplated by the Basic
Documents;

                        (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 applicable state law) or
assert any claim against any present or former Noteholder by reason of the
payment of the taxes levied or assessed upon any part of the Collateral;

                        (c)     voluntarily commence any insolvency,
readjustment of debt, marshaling of assets and liabilities or other proceeding,
or apply for an order by a court or agency or supervisory authority for the
winding-up or liquidation of its affairs or any other event specified in Section
5.1(f); or

                        (d)     either (i) 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 except as may be expressly permitted hereby, (ii)
permit any lien, charge, excise, claim, security interest, mortgage or other
encumbrance (other than the lien of this Indenture) to be created on or extend
to or otherwise arise upon or burden the Collateral or any part thereof or any
interest therein or the proceeds thereof (other than tax liens, mechanics' liens
and other liens that arise by operation of law, in each case on a Financed
Vehicle and arising solely as a result of an action or omission of the related
Obligor), or (iii) permit the lien of this Indenture not to constitute a valid
first priority security interest in the Collateral (other than with respect to
any such tax, mechanics' or other lien).

        Section 3.9 Annual Statement as to Compliance. The Issuer shall deliver
to the Indenture Trustee, with a copy to each of the Rating Agencies, on or
before February 1 of each

                                     - 15 -

<PAGE>

year, beginning February 1, 2004, an Officer's Certificate signed by an
Authorized Officer, dated as of the immediately preceding October 31, stating
that:

                        (a)     a review of the activities of the Issuer during
such fiscal year and of performance by the Issuer 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 fulfilled in all material
respects all of its obligations under this Indenture throughout such year, or,
if there has been a default in the fulfillment of any such obligation,
specifying each such default known to such Authorized Officer and the nature and
status thereof. A copy of such certificate may be obtained by any Noteholder by
a request in writing to the Issuer addressed to the Corporate Trust Office of
the Indenture Trustee.

                Section 3.10 Consolidation, Merger, etc., of the Issuer;
Disposition of Trust Assets.

                        (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 and shall expressly assume, by an indenture supplemental
        hereto, executed and delivered to the Indenture Trustee, in form
        satisfactory to the Indenture Trustee, the due and timely payment of the
        principal of and interest on all Notes and the performance or observance
        of every agreement and covenant of this Indenture on the part of the
        Issuer to be performed or observed, all as provided herein;

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

                                (iii)   the Rating Agency Condition shall have
        been satisfied with respect to such transaction and such Person for each
        then outstanding class of Notes;

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

                                (v)     the Issuer shall have delivered to the
        Indenture Trustee an Officers' Certificate and an Opinion of Counsel
        addressed to the Issuer, each stating:

                                        (A)     that such consolidation or
                merger and such supplemental indenture comply with this Section
                3.10;

                                        (B)     that such consolidation or
                merger and such supplemental indenture shall have no material
                adverse tax consequence to the Issuer or any Securityholder; and

                                     - 16 -

<PAGE>

                                        (C)     that all conditions precedent
                herein provided for in this Section 3.10 have been complied
                with, which shall include any filing required by the Exchange
                Act.

                        (b)     Except as otherwise expressly permitted by this
Indenture or the other Basic Documents, the Issuer shall not sell, convey,
exchange, transfer or otherwise dispose of any of its properties or assets,
including those included in the Collateral, to any Person, unless:

                                (i)     the Person that acquires such properties
        or assets of the Issuer (A) shall be a United States citizen or a Person
        organized and existing under the laws of the United States of America or
        any State and (B) by an indenture supplemental hereto, executed and
        delivered to the Indenture Trustee, in form satisfactory to the
        Indenture Trustee:

                                        (A)     expressly assumes the due and
                punctual payment of the principal of and interest on all Notes
                and the performance or observance of every agreement and
                covenant of this Indenture on the part of the Issuer to be
                performed or observed, all as provided herein;

                                        (B)     expressly agrees that all right,
                title and interest so sold, conveyed, exchanged, transferred or
                otherwise disposed of shall be subject and subordinate to the
                rights of Noteholders;

                                        (C)     unless otherwise provided in
                such supplemental indenture, expressly agrees to indemnify,
                defend and hold harmless the Issuer against and from any loss,
                liability or expense arising under or related to this Indenture
                and the Notes; and

                                        (D)     expressly agrees that such
                Person (or if a group of Persons, then one specified Person)
                shall make all filings with the Commission (and any other
                appropriate Person) required by the Exchange Act in connection
                with the Notes;

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

                                (iii)   the Rating Agency Condition shall have
        been satisfied with respect to such transaction and such Person for each
        then outstanding class of Notes;

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

                                (v)     the Issuer shall have delivered to the
        Indenture Trustee an Officers' Certificate and an Opinion of Counsel
        addressed to the Issuer, each stating that:

                                        (A)     such sale, conveyance, exchange,
                transfer or disposition and such supplemental indenture comply
                with this Section 3.10;

                                     - 17 -

<PAGE>

                                        (B)     such sale, conveyance, exchange,
                transfer or disposition and such supplemental indenture have no
                material adverse tax consequence to the Issuer or to any
                Noteholders or Certificateholders; and

                                        (C)     that all conditions precedent
                herein provided for in this Section 3.10 have been complied
                with, which shall include 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), the Issuer shall 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 Securityholders
immediately upon the delivery of written notice to the Indenture Trustee from
the Person acquiring such assets and properties stating that the Issuer is to be
so released.

                Section 3.12 No Other Business. The Issuer shall not engage in
any business or activity other than acquiring, holding and managing the
Collateral and the proceeds therefrom in the manner contemplated by the Basic
Documents, issuing the Securities, making payments on the Securities and such
other activities that are necessary, suitable, desirable or convenient to
accomplish the foregoing or are incidental thereto, as set forth in Section 2.3
of the Trust Agreement. After the end of the Funding Period, the Issuer shall
not fund the purchase of any new Receivables.

                Section 3.13 No Borrowing. The Issuer shall not issue, incur,
assume, guarantee or otherwise become liable, directly or indirectly, for any
indebtedness for money borrowed other than indebtedness for money borrowed in
respect of the Notes or in accordance with the Basic Documents.

                Section 3.14 Guarantees, Loans, Advances and Other Liabilities.
Except as contemplated by 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.

                Section 3.15 Servicer's Obligations. The Issuer shall use its
best efforts to cause the Servicer to comply with its obligations under Sections
2.17, 3.01 and 3.02 of the Servicing Agreement.

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<PAGE>

                Section 3.16 Capital Expenditures. The Issuer shall not make any
expenditure (whether by long-term or operating lease or otherwise) for capital
assets (either real, personal or intangible property) other than the purchase of
the Receivables and other property and rights from the Seller pursuant to the
Pooling Agreement.

                Section 3.17 Removal of Administrator. So long as any Notes are
Outstanding, the Issuer shall not remove the Administrator without cause unless
the Rating Agency Condition for each class of Notes then outstanding shall have
been satisfied in connection with such removal.

                Section 3.18 Restricted Payments. Except for payments of
principal or interest on or redemption of the Notes, so long as any Notes are
Outstanding, the Issuer shall not, directly or indirectly:

                        (a)     pay any dividend or make any distribution (by
reduction of capital or otherwise), whether in cash, property, securities or a
combination thereof, to the Owner Trustee or any owner of a beneficial interest
in the Issuer or otherwise, in each case with respect to any ownership or equity
interest or similar security in or of the Issuer or to the Servicer;

                        (b)     redeem, purchase, retire or otherwise acquire
for value any such ownership or equity interest or similar security; or

                        (c)     set aside or otherwise segregate any amounts for
any such purpose;

provided, however, that the Issuer may make, or cause to be made, distributions
to the Servicer, the Seller, the Indenture Trustee, the Owner Trustee and the
Certificateholders as permitted by, and to the extent funds are available for
such purpose hereunder or under, the Pooling Agreement, the Servicing Agreement,
the Trust Agreement or the other Basic Documents. The Issuer shall 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 agrees to
give the Indenture Trustee and the Rating Agencies prompt written notice of each
Event of Default hereunder, each Servicer Default under the Servicing Agreement,
each default on the part of the Seller of its obligations under the Pooling
Agreement, each default on the part of NFC of its obligations under the Purchase
Agreement and each default on the part of Harco Leasing under the Lease Purchase
Agreement.

                Section 3.20 Further Instruments and Acts. Upon request of the
Indenture Trustee, the Issuer shall execute and deliver such further instruments
and do such further acts as may be reasonably necessary or proper to carry out
more effectively the purpose of this Indenture.

                Section 3.21 Indenture Trustee's Assignment of Administrative
Receivables and Warranty Receivables. Upon receipt of the Administrative
Purchase Payment or the Warranty Payment with respect to an Administrative
Receivable or a Warranty Receivable, as the case may be, the Indenture Trustee
shall release to the Servicer or the Warranty Purchaser, as applicable, all of
the Indenture Trustee's right, title and interest in and to such repurchased

                                     - 19 -

<PAGE>

Receivable and the Related Security with respect thereto and any documents
relating thereto, and the Servicer or the Warranty Purchaser, as applicable,
shall thereupon own such Receivable and the Related Security with respect
thereto free of any further obligation to the Indenture Trustee or the
Noteholders with respect thereto. If in any enforcement suit or legal proceeding
it is held that the Servicer may not enforce a Receivable on the ground that it
is not a real party in interest or a holder entitled to enforce such Receivable,
the Indenture Trustee shall, at the Servicer's expense, take such steps as the
Servicer deems necessary to enforce the Receivable, including bringing suit in
the Indenture Trustee's name or the names of the Securityholders.

                Section 3.22 Representations and Warranties by the Issuer to the
Indenture Trustee. The Issuer hereby represents and warrants to the Indenture
Trustee as follows:

                        (a)     Good Title. No Receivable has been sold,
transferred, assigned or pledged by the Issuer to any Person other than the
Indenture Trustee; immediately prior to the grant of a security interest in the
Receivable pursuant to this Indenture, the Issuer had good and marketable title
thereto, free of any Lien (except for Permitted Liens); and, upon execution and
delivery of this Indenture by the Issuer, the Indenture Trustee shall have all
of the right, title and interest of the Issuer in, to and under the Collateral,
free of any Lien (except for any Lien which may exist in accessions to the
Financed Vehicles not financed by NFC); and

                        (b)     All Filings Made. All filings necessary under
the UCC in any jurisdiction to give the Indenture Trustee a first priority
perfected security interest in the Receivables and, to the extent constituting
Code Collateral, the other Collateral shall have been made. The Receivables
constitute Code Collateral.

                        (c)     Series 2003-A_ Portfolio Certificate. The Series
2003-A Portfolio Certificate has been duly registered in the name of the
Indenture Trustee and all other action necessary (including the filing of UCC-1
financing statements) to protect and perfect the Indenture Trustee's security
interest in the Collateral now in existence and hereafter acquired or created
has been duly and effectively taken.

                        (d)     Lien of Indenture. This Indenture constitutes a
valid and continuing Lien on the Collateral in favor of the Indenture Trustee on
behalf of the Noteholders, which Lien will be prior to all other Liens (other
than Permitted Liens), will be enforceable as such as against creditors of and
purchasers from the Issuer in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization or other similar laws affecting the enforcement of creditors'
rights in general and by general principles of equity, regardless of whether
such enforceability is considered in a proceeding in equity or at law, and all
action necessary to perfect such prior security interest has been duly taken.

                                   ARTICLE IV
                           SATISFACTION AND DISCHARGE

                Section 4.1 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

                                     - 20 -

<PAGE>

Noteholders to receive payments of principal thereof and interest thereon; (iv)
Sections 3.2, 3.3, 3.4, 3.5, 3.8, 3.10, 3.11, 3.12, 3.13, 3.14, 3.16, 3.17, 3.19
and 3.21; (v) the rights, obligations and immunities of the Indenture Trustee
hereunder (including the rights of the Indenture Trustee under Section 6.7 and
the obligations of the Indenture Trustee under Sections 4.2 and 4.4); and (vi)
the rights of Noteholders as beneficiaries hereof with respect to the property
so deposited with the Indenture Trustee payable to all or any of them, and the
Indenture Trustee, on demand of and at the expense of the Issuer shall execute
proper instruments acknowledging satisfaction and discharge of this Indenture
with respect to the Notes, if:

                        (a)     either:

                                (i)     all Notes theretofore authenticated and
        delivered (other than (A) Notes that have been destroyed, lost or stolen
        and that have been replaced or paid as provided in Section 2.5 and (B)
        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 3.3) have
        been delivered to the Indenture Trustee for cancellation; or

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

                                        (A)     have become due and payable,

                                        (B)     will be due and payable on their
                respective Final Scheduled Distribution Dates within one year,
                or

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

and the Issuer, in the case of (A), (B) or (C) of subsection 4.1(a)(2) above,
has irrevocably deposited or caused to be irrevocably deposited with the
Indenture Trustee cash or direct obligations of or obligations guaranteed by the
United States of America (which will mature prior to the date such amounts are
payable), in trust for such purpose, in an amount sufficient to pay and
discharge the entire unpaid principal and accrued interest on such Notes not
theretofore delivered to the Indenture Trustee for cancellation when due on the
Final Scheduled Distribution Date for such Notes or the Redemption Date for such
Notes (if such Notes are to be called for redemption pursuant to Section
10.1(a)), as the case may be;

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

                        (c)     the Issuer has delivered to the Indenture
Trustee an Officer's Certificate of the Issuer, 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 11.1(a) and each stating that all conditions precedent herein
provided for relating to the satisfaction and discharge of this Indenture have
been complied with.

                                     - 21 -

<PAGE>

                Section 4.2 Application of Trust Money. All monies deposited
with the Indenture Trustee pursuant to Section 4.1 shall be held in trust and
applied by it, in accordance with the provisions of the Notes and this
Indenture, to the payment, either directly or through any Paying Agent, as the
Indenture Trustee may determine, to the Holders of the particular Notes for the
payment or redemption of which such monies have been deposited with the
Indenture Trustee, of all sums due and to become due thereon for principal and
interest; but such monies need not be segregated from other funds except to the
extent required herein or in the Servicing Agreement or by applicable law.

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

                Section 4.4 Duration of Position of Indenture Trustee for
Benefit of Certificateholders. Notwithstanding (i) the earlier payment in full
of all principal and interest due to the Noteholders under the terms of Notes of
each class, (ii) the cancellation of such Notes pursuant to Section 2.8 and
(iii) the discharge of the Indenture Trustee's duties hereunder with respect to
such Notes, the Indenture Trustee shall continue to act in the capacity as
Indenture Trustee hereunder for the benefit of the Certificateholders and the
Indenture Trustee, for the benefit of the Certificateholders, shall comply with
its obligations under Sections 2.02, 7.02 and 7.03 of the Servicing Agreement,
as appropriate, until such time as all distributions in respect of the
Certificates have been paid in full.

                                    ARTICLE V
                              DEFAULT AND REMEDIES

                Section 5.1 Events of Default. For the  purposes of this
Indenture, "Event of Default" wherever used herein, means any one of the
following events:

                        (a)     failure to pay any interest on any Note as and
when the same becomes due and payable, and such default shall continue
unremedied for a period of five (5) days; or

                        (b)     except as set forth in Section 5.1(c), failure
to pay any instalment of the principal of any Note as and when the same becomes
due and payable, and such default shall continue unremedied for a period of
thirty (30) days after there shall have been given, by registered or certified
mail, to the Issuer and the Seller (or the Servicer, as applicable) by the
Indenture Trustee or to the Issuer and the Seller (or the Servicer, as
applicable) and the Indenture Trustee by the Holders of at least 25% of the
Outstanding Amount of the Controlling Class, a written notice specifying such
default, demanding that it be remedied and stating that such notice is a "Notice
of Default" hereunder; or

                        (c)     failure to pay in full the outstanding principal
balance of any class of Notes by the Final Scheduled Distribution Date for such
class; or

                                     - 22 -

<PAGE>

                        (d)     default in the observance or performance in any
material respect of any covenant or agreement of the Issuer made in this
Indenture (other than a covenant or agreement, a default in the observance or
performance of which is specifically dealt with elsewhere in this Section 5.1)
which failure materially and adversely affects the rights of the Noteholders,
and such default shall continue or not be cured for a period of thirty (30) days
after there shall have been given, by registered or certified mail, to the
Issuer and the Seller (or the Servicer, as applicable) by the Indenture Trustee
or to the Issuer and the Seller (or the Servicer, as applicable) and the
Indenture Trustee by the Holders of at least 25% of the Outstanding Amount of
the Controlling Class, a written notice specifying such default, demanding that
it be remedied and stating that such notice is a "Notice of Default" hereunder;
or

                        (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 Owner 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 (other than as Owner
Trustee) or for any substantial part of the Collateral, or ordering the
winding-up or liquidation of the Issuer's affairs, and such decree or order
shall remain unstayed and in effect for a period of sixty (60) consecutive days;
or

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

The Issuer shall deliver to the Indenture Trustee, within five (5) Business Days
after learning of the occurrence thereof, written notice in the form of an
Officer's Certificate of any Default under Section 5.1(d), its status and what
action the Issuer is taking or proposes to take with respect thereto.

                Section 5.2 Acceleration of Maturity; Rescission and Annulment.

                        (a)     If an Event of Default should occur and be
continuing, then and in every such case, unless the principal amount of the
Notes shall have already become due and payable, either the Indenture Trustee or
the Holders of Notes representing not less than a majority of the Outstanding
Amount of the Controlling Class may 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 the Noteholders) setting forth the Event or Events of Default, and
upon any such declaration the unpaid principal amount of the Notes together with
accrued and unpaid interest thereon through the date of acceleration, shall
become immediately due and payable.

                        (b)     At any time after such declaration of
acceleration of maturity of the Notes has been made and before a judgment or
decree for payment of the money due

                                     - 23 -

<PAGE>

thereunder has been obtained by the Indenture Trustee as hereinafter provided in
this Article V, the Holders of Notes representing not less than a majority of
the Outstanding Amount of the Controlling Class, by written notice to the Issuer
and the Indenture Trustee, may rescind and annul such declaration and its
consequences with respect to the Notes; provided, that no such rescission and
annulment shall extend to or affect any subsequent or other Default or impair
any right consequent thereto; and provided further, that if the Indenture
Trustee shall have proceeded to enforce any right under this Indenture and such
proceedings shall have been discontinued or abandoned because of such rescission
and annulment or for any other reason, or such proceedings shall have been
determined adversely to the Indenture Trustee, then and in every such case, the
Indenture Trustee, the Issuer and the Noteholders, as the case may be, shall be
restored to their respective former positions and rights hereunder, and all
rights, remedies and powers of the Indenture Trustee, the Issuer and the
Noteholders, as the case may be, shall continue as though no such proceedings
had been commenced.

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

                        (a)     The Issuer covenants that if there shall occur
an Event of Default under Sections 5.1(a), (b) or (c), the Issuer shall, upon
demand of the Indenture Trustee, pay to the Indenture Trustee, for the benefit
of the Noteholders in accordance with their respective outstanding principal
amounts, the entire amount then due and payable on the Notes for principal and
interest, with interest through the date of such payment on the overdue
principal amount of each class of Notes, at the rate applicable to such class of
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)     If 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 the Notes, wherever situated, the monies 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 5.4, in its
discretion, proceed to protect and enforce its rights and the rights of the
Noteholders, by such appropriate Proceedings as the Indenture Trustee shall deem
most effective to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the
exercise of any power granted herein, or to enforce any other proper remedy or
legal or equitable right vested in the Indenture Trustee by this Indenture or by
applicable law.

                        (d)     If there shall be pending, relative to the
Issuer or any other obligor upon the Notes or any Person having or claiming an
ownership interest in the Collateral, Proceedings under Title 11 of the United
States Code or any other applicable federal or state bankruptcy, insolvency or
other similar law, or if a receiver, assignee or trustee in bankruptcy or
reorganization, liquidator, sequestrator or similar official shall have been
appointed for or taken

                                     - 24 -

<PAGE>

possession of the Issuer or its property or such other obligor or Person, or in
case of any other comparable judicial Proceedings relative to the Issuer or
other obligor upon the Notes, or to the creditors or property of the Issuer or
such other obligor, the Indenture Trustee, irrespective of whether the principal
of any Notes shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Indenture Trustee shall
have made any demand pursuant to the provisions of this Section 5.3, shall be
entitled and empowered, by intervention in such Proceedings or otherwise:

                                (i)     to file and prove a claim or claims for
        the entire amount of the unpaid principal and interest owing in respect
        of the Notes and to file such other papers or documents as may be
        necessary or advisable in order to have the claims of the Indenture
        Trustee (including any claim for reasonable compensation to the
        Indenture Trustee and each predecessor 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 trustee, except as a result of negligence or bad
        faith) and of the Noteholders allowed in such Proceedings;

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

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

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

and any trustee, receiver, liquidator, custodian or other similar official in
any such Proceeding is hereby authorized by each of such Noteholders to make
payments to the Indenture Trustee, and, if 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 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 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, may be enforced by the
Indenture Trustee without the possession of any

                                     - 25 -

<PAGE>

of the Notes or the production thereof in any trial or other Proceedings
relative thereto, and any such 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 trustee and their
respective agents and attorneys, shall be applied in accordance with Section
5.4(b).

                        (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 5.4 Remedies; Priorities.

                        (a)     If an Event of Default shall have occurred and
be continuing and the Notes have been accelerated under Section 5.2(a), the
Indenture Trustee may do one or more of the following (subject to Section 5.5):

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

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

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

                                (iv)    sell the Collateral 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 or elect to
        have the Issuer maintain possession of the Collateral, including the
        Receivables included therein and continue to apply collections on such
        Receivables as if there had been no declaration of acceleration;
        provided, however, that the Indenture Trustee may not sell or otherwise
        liquidate the Collateral following an Event of Default and acceleration
        of the Notes, unless (A) the Holders of all of the aggregate Outstanding
        Amount of the Notes consent thereto, (B) the proceeds of such sale or
        liquidation distributable to the Noteholders are sufficient to discharge
        in full the principal of and the accrued interest on the Notes, in each
        case as of the date of such sale or liquidation or (C) (i) there has
        been an Event of Default under Section 5.1(a), (b) or (c) or otherwise
        arising from a failure to make a required payment of principal on any
        Notes, (ii) the Indenture Trustee determines that the Collateral will
        not continue to provide sufficient funds for the payment of principal of
        and interest on the Notes as and when they would have become due if the
        Notes had not been declared due and payable and (iii) the Indenture
        Trustee obtains the consent of Holders of a majority of the aggregate

                                     - 26 -

<PAGE>

        Outstanding Amount of the Controlling Class. In determining such
        sufficiency or insufficiency with respect to clauses (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 Collateral for such purpose.

                        (b)     If the Indenture Trustee collects any money or
property pursuant to this Article V, it shall pay out or deposit such money or
property in the following order:

        FIRST:  to the Indenture Trustee for amounts due under Section 6.7; and

        SECOND:  to the Collection Account, for distribution pursuant to Section
4.02 of the Pooling Agreement and Section 8.2(c) of this Indenture.

                Section 5.5 Optional Preservation of the Collateral. If the
Notes have been declared to be due and payable under Section 5.2(a) following an
Event of Default and such declaration and its consequences have not been
rescinded and annulled in accordance with Section 5.2(b), the Indenture Trustee
may, but need not, elect to take and maintain possession of the Collateral. It
is the desire of the parties hereto and the Noteholders that there be at all
times sufficient funds for the payment of principal of and interest on the
Notes, and the Indenture Trustee shall take such desire into account when
determining whether or not to take and maintain possession of the Collateral. In
determining whether to take and maintain possession of the Collateral, 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
Collateral for such purpose.

                Section 5.6 Limitation of Suits. No Holder of any Note shall
have any right to institute any Proceeding, judicial or otherwise, with respect
to this Indenture, or for the appointment of a receiver or trustee, or for any
other remedy hereunder, unless:

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

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

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

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

                                (v)     no direction inconsistent with such
        written request has been given to the Indenture Trustee during such
        60-day period by the Holders of a majority of the Outstanding Amount of
        the Controlling Class;

                                     - 27 -

<PAGE>

it being understood and intended that no Holder or Holders of Notes shall have
any right in any manner whatsoever by virtue of, or by availing of, any
provision of this Indenture to affect, disturb or prejudice the rights of any
other Holders of Notes or to obtain or to seek to obtain priority or preference
over any other Holders of Notes or to enforce any right under this Indenture,
except in the manner herein provided and for the equal, ratable (on the basis of
the respective aggregate amount of principal and interest, respectively, due and
unpaid on the Notes held by each Noteholder) and common benefit of all
Noteholders. For the protection and enforcement of the provisions of this
Section 5.6, each and every Noteholder shall be entitled to such relief as can
be given either at law or in equity.

                If the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Holders of Notes,
each representing less than a majority of the Outstanding Amount of the
Controlling Class, the Indenture Trustee in its sole discretion may determine
what action, if any, shall be taken, notwithstanding any other provisions of
this Indenture.

                Section 5.7 Unconditional Rights of Noteholders To Receive
Principal and Interest. Notwithstanding any other provisions in this Indenture,
the Holder of any Note shall have the right, which is absolute and
unconditional, to receive payment of the principal of and interest on such Note
on or after the respective due dates thereof expressed in such Note or in this
Indenture (or, in the case of redemption, if applicable, on or after the
Redemption Date) and to institute suit for the enforcement of any such payment,
and such right shall not be impaired without the consent of such Holder.

                Section 5.8 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 to their respective 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 5.9 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 shall impair any such right or remedy
or constitute a waiver of any such 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.

                                     - 28 -

<PAGE>

                Section 5.11 Control by Noteholders. The Holders of a majority
of the Outstanding Amount of the Controlling Class shall, subject to provision
being made for indemnification against costs, expenses and liabilities in a form
satisfactory to the Indenture Trustee, 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, however, that:

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

                                (ii)    subject to the express terms of Section
        5.4, any direction to the Indenture Trustee to sell or liquidate the
        Collateral shall be by the Holders of Notes representing 100% of the
        Outstanding Amount of the Notes;

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

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

provided, however, that, subject to Section 6.1, the Indenture Trustee need not
take any action that it determines might cause it to incur any liability (a)
with respect to which the Indenture Trustee shall have reasonable grounds to
believe that adequate indemnity against such liability in not assured to it and
(b) which might materially adversely affect the rights of any Noteholders not
consenting to such action.

                Section 5.12 Waiver of Past Defaults.

                        (a)     Prior to the declaration of the acceleration of
the maturity of the Notes as provided in Section 5.2(a), the Holders of not less
than a majority of the Outstanding Amount of the Controlling Class may waive any
past Default and its consequences except a Default (i) in the payment of
principal of or interest on any of the Notes or (ii) in respect of a covenant or
provision hereof which cannot be modified or amended without the consent of the
Holder of each Note. In the case of any such waiver, the Issuer, the Indenture
Trustee and the Noteholders shall be restored to their respective former
positions and rights hereunder; but no such waiver shall extend to or affect any
subsequent or other Default or impair any right consequent thereto.

                        (b)     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 or affect any subsequent or other Default or impair any right
consequent thereto.

                                     - 29 -

<PAGE>

                Section 5.13 Undertaking for Costs. All parties to this
Indenture agree, and each Holder of any Note by such Holder's acceptance thereof
shall be deemed to have agreed, that any court may in its discretion require, in
any Proceeding for the enforcement of any right or remedy under this Indenture,
or in any Proceeding against the Indenture Trustee for any action taken,
suffered or omitted by it as Trustee, the filing by any party litigant in such
Proceeding of an undertaking to pay the costs of such Proceeding, and that such
court may in its discretion assess reasonable costs, including reasonable
attorneys' fees, against any party litigant in such Proceeding, 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 5.13 shall not apply to:

                        (a)     any Proceeding instituted by the Indenture
Trustee;

                        (b)     any Proceeding instituted by any Noteholder, or
group of Noteholders, in each case holding in the aggregate more than 10% of the
Outstanding Amount of the Controlling Class; or

                        (c)     any Proceeding instituted by any Noteholder for
the enforcement of the payment of principal of or interest on any Note on or
after the respective due dates expressed in such Note and in this Indenture (or,
in the case of redemption, on or after the Redemption Date).

                Section 5.14 Waiver of Stay or Extension Laws. The Issuer,
covenants (to the extent that it may lawfully do so) that it shall 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 adversely affect the covenants or the
performance of this Indenture. 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 shall not hinder, delay or impede the execution of any power
herein granted to the Indenture Trustee, but shall 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
Collateral or upon any of the assets of the Issuer. Any money or property
collected by the Indenture Trustee shall be applied in accordance with Section
5.4(b).

                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 agrees to take
all such lawful action as the Indenture Trustee may request to compel or secure
the performance and observance by the Seller of its obligations to the Issuer
under or in connection with the Pooling Agreement and the Purchase Agreement, by
the Servicer of its obligations to the Issuer under or in connection with the
Servicing Agreement, by NFC of its obligations under or in connection with the
Lease

                                     - 30 -

<PAGE>

Purchase Agreement and the Purchase Agreement, by Harco Leasing of its
obligation under or in connection with the Lease Purchase Agreement or by any
other party to a Titling Trust Document of its obligations under or in
connection with such Titling Trust Document in accordance with the terms
thereof, and to exercise any and all rights, remedies, powers and privileges
lawfully available to the Issuer under or in connection with the Pooling
Agreement, the Servicing Agreement, the Purchase Agreement, the Lease Purchase
Agreement and the Titling Trust Documents 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, the Servicer, NFC, Harco Leasing or any other
party to a Titling Trust Document thereunder and the institution of legal or
administrative actions or proceedings to compel or secure performance by the
Seller, the Servicer, NFC, Harco Leasing or any other party to a Titling Trust
Document of each of their respective obligations under the Pooling Agreement,
the Servicing Agreement, the Purchase Agreement, the Lease Purchase Agreement
and the Titling Trust Documents.

                        (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 Controlling Class
shall, exercise all rights, remedies, powers, privileges and claims of the
Issuer against the Seller under or in connection with the Pooling Agreement and
the Purchase Agreement, the Servicer under or in connection with the Servicing
Agreement, NFC under or in connection with the Lease Purchase Agreement and the
Purchase Agreement, Harco Leasing under or in connection with the Lease Purchase
Agreement or any party to a Titling Trust Document under or in connection with
such Titling Trust Document, including the right or power to take any action to
compel or secure performance or observance by the Seller, the Servicer, NFC,
Harco Leasing or such party of each of their obligations to the Issuer
thereunder and to give any consent, request, notice, direction, approval,
extension or waiver under the Pooling Agreement, the Servicing Agreement, the
Purchase Agreement, the Lease Purchase Agreement and the Titling Trust
Documents, and any right of the Issuer to take such action shall be suspended.

                                   ARTICLE VI
                              THE INDENTURE TRUSTEE

                Section 6.1 Duties of Indenture Trustee.

                        (a)     If an Event of Default has occurred and is
continuing, the Indenture Trustee shall exercise the rights and powers vested in
it by this Indenture and use the same degree of care and skill in their exercise
as a prudent person would exercise or use under the circumstances in the conduct
of such person's own affairs.

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

                                (i)     the Indenture Trustee undertakes to
        perform such duties and only such duties as are specifically set forth
        in this Indenture, the Pooling Agreement and the Servicing Agreement and
        no implied covenants or obligations shall be read into this Indenture,
        the Pooling Agreement, the Servicing Agreement or any other Basic
        Document against the Indenture Trustee; and

                                     - 31 -

<PAGE>

                                (ii)    in the absence of bad faith on its part,
        the Indenture Trustee may conclusively rely, as to the truth of the
        statements and the correctness of the opinions expressed therein, upon
        certificates or opinions furnished to the Indenture Trustee and
        conforming to the requirements of this Indenture; provided, however,
        that the Indenture Trustee shall examine the certificates and opinions
        to determine whether or not they conform to any applicable requirements
        of this Indenture.

                        (c)     The Indenture Trustee may not be relieved from
liability for its own negligent action, its own negligent failure to act or its
own wilful misconduct, except that:

                                (i)     this Section 6.1(c) does not limit the
        effect of Section 6.1(b);

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

                                (iii)   the Indenture Trustee shall not be
        liable with respect to any action it takes or omits to take in good
        faith in accordance with a direction received by it pursuant to Section
        5.11.

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

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

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

                        (g)     The Indenture Trustee shall reimburse the Seller
and any director, officer, employee or agent of the Seller for any contractual
damages, liability or expense incurred by reason of the Indenture Trustee's
willful misfeasance, bad faith or gross negligence (except errors in judgment)
in the performance of its duties under any of the Further Transfer and Servicing
Agreements, or by reason of reckless disregard of its obligations and duties
under any of the Further Transfer and Servicing Agreements.

                        (h)     Every provision of this Indenture relating to
the Indenture Trustee shall be subject to the provisions of this Section 6.1 and
to the provisions of the TIA.

                Section 6.2 Rights of Indenture Trustee.

                        (a)     The Indenture Trustee may rely on any document
believed by it to be genuine and to have been signed or presented by the proper
Person. The Indenture Trustee need not investigate any fact or matter stated in
the document.

                                     - 32 -

<PAGE>

                        (b)     Before the Indenture Trustee acts or refrains
from acting, it may require an Officer's Certificate from the Issuer or an
Opinion of Counsel that such action or omission is required or permissible
hereunder. The Indenture Trustee shall not be liable for any action it takes or
omits to take in good faith in reliance on such Officer's Certificate or Opinion
of Counsel.

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

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

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

                Section 6.3 Indenture Trustee May Own Notes. The Indenture
Trustee in its individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Issuer, the Servicer or any of their
respective Affiliates with the same rights it would have if it were not
Indenture Trustee; provided, however, that the Indenture Trustee shall comply
with Sections 6.10 and 6.11. Any Paying Agent, Note Registrar, co-registrar or
co-paying agent may do the same with like rights.

                Section 6.4 Indenture Trustee's Disclaimer. The Indenture
Trustee shall not be responsible for and makes no representation as to the
validity or adequacy of this Indenture or the Notes, it shall not be accountable
for the Issuer's use of the proceeds from the Notes, and it shall not be
responsible for any statement of the Issuer in the Indenture or in any document
issued in connection with the sale of the Notes or in the Notes other than the
Indenture Trustee's certificate of authentication.

                Section 6.5 Notice of Defaults. If a Default occurs and is
continuing and if it is known to a Responsible Officer of the Indenture Trustee,
the Indenture Trustee shall mail to each Noteholder notice of the Default within
30 days after such Responsible Officer obtained knowledge of such Default.
Except in the case of a Default in payment of principal of or interest on any
Note, the Indenture Trustee may withhold the notice if and so long as a
committee of its Responsible Officers in good faith determines that withholding
the notice is in the interests of Noteholders.

                Section 6.6 Reports by Indenture Trustee to Holders. The
Indenture Trustee shall deliver to each Noteholder the information and documents
set forth in Article VII, and, in

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addition, all such information with respect to the Notes as may be required, as
specified by the Servicer, to enable such Holder to prepare its federal and
state income tax returns.

                Section 6.7 Compensation; Indemnity.

                        (a)     The Issuer shall cause the Servicer pursuant to
the Servicing Agreement to pay to the Indenture Trustee from time to time such
compensation for its services as shall be agreed upon in writing. 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 pursuant to the
Servicing Agreement 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 Issuer shall
cause the Servicer pursuant to the Servicing Agreement to indemnify the
Indenture Trustee in accordance with Section 6.05 of the Servicing Agreement.

                        (b)     The Issuer's obligations to the Indenture
Trustee pursuant to this Section 6.7 shall survive the discharge of this
Indenture. When the Indenture Trustee incurs expenses after the occurrence of a
Default specified in Section 5.1(e) or (f) 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 6.8 Replacement of Indenture Trustee.

                        (a)     The Indenture Trustee may at any time give
notice of its intent to resign by so notifying the Issuer; provided, however,
that no such resignation shall become effective and the Indenture Trustee shall
not resign prior to the time set forth in Section 6.8(c). The Holders of a
majority in Outstanding Amount of the Controlling Class may remove the Indenture
Trustee by so notifying the Indenture Trustee and may appoint a successor
Indenture Trustee. Such resignation or removal shall become effective in
accordance with Section 6.8(c). The Issuer shall remove the Indenture Trustee
if:

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

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

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

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

                        (b)     If the Indenture Trustee gives notice of its
intent to resign or is removed or if a vacancy exists in the office of the
Indenture Trustee for any reason (the Indenture Trustee in such event being
referred to herein as the retiring Indenture Trustee), the Issuer shall promptly
appoint and designate a successor Indenture Trustee.

                        (c)     A successor Indenture Trustee shall deliver a
written acceptance of its appointment and designation to the retiring Indenture
Trustee and to the Issuer. Thereupon

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<PAGE>

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 to
each of the Rating Agencies. The retiring Indenture Trustee shall promptly
transfer all property held by it as Indenture Trustee to the successor Indenture
Trustee.

                        (d)     If a successor Indenture Trustee does not take
office within 60 days after the retiring Indenture Trustee gives notice of its
intent to resign or is removed, the retiring Trustee, the Issuer or the Holders
of a majority of the Outstanding Amount of the Controlling Class may petition
any court of competent jurisdiction for the appointment and designation of a
successor Indenture Trustee.

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

                        (f)     Notwithstanding the replacement of the Indenture
Trustee pursuant to this Section 6.8, the Issuer's obligations under Section 6.7
and the Servicer's corresponding obligations under the Servicing Agreement shall
continue for the benefit of the retiring Indenture Trustee.

                Section 6.9 Merger or Consolidation of Indenture Trustee.

                        (a)     Any Person into which the Indenture Trustee may
be merged or with which it may be consolidated, or any Person resulting from any
merger or consolidation to which the Indenture Trustee shall be a party, or any
corporation succeeding to the corporate trust business of the Indenture Trustee,
shall be the successor of the Indenture Trustee under this Indenture; provided,
however, that such Person shall be eligible under the provisions of Section
6.11, without the execution or filing of any instrument or any further act on
the part of any of the parties to this Indenture, anything in this Indenture to
the contrary notwithstanding. Following such merger or consolidation, the
successor Indenture Trustee shall mail a notice of such merger or consolidation
to each of the Rating Agencies.

                        (b)     If at the time such successor or successors by
merger 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. In all such cases such certificate of
authentication shall have the same full force as is provided anywhere in the
Notes or herein with respect to the certificate of authentication of the
Indenture Trustee.

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

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                        (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 Collateral or any Financed Vehicle 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 Collateral, and to vest in such Person or Persons, in such
capacity and for the benefit of the Noteholders and (only to the extent
expressly provided herein) the Certificateholders, such title to the Collateral,
or any part hereof, and, subject to the other provisions of this Section 6.10,
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 6.8.

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

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

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

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

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

                        (d)     Any separate trustee or co-trustee may at any
time constitute the Indenture Trustee, its agent or attorney-in-fact with full
power and authority, to the extent not

                                     - 36 -

<PAGE>

prohibited by law, to do any lawful act under or in respect of this Indenture on
its behalf and in its name. If any separate trustee or co-trustee shall die,
become incapable of acting, resign or be removed, all of its estates,
properties, rights, remedies and trusts shall vest in and be exercised by the
Indenture Trustee, to the extent permitted by law, without the appointment of a
new or successor trustee.

                Section 6.11 Eligibility; Disqualification.

                        (a)     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 (unless waived by Moody's) it
shall have a long term unsecured debt rating of Baa3 or better by Moody's. The
Indenture Trustee shall comply with TIA Section 310(b); provided, however, that
there shall be excluded from the operation of TIA Section 310(b)(1) any
indenture or indentures under which other securities of the Issuer are
outstanding if the requirements for such exclusion set forth in TIA Section
310(b)(1) are met.

                        (b)     If a Default occurs and is continuing, and the
Indenture Trustee is deemed to have a conflicting interest as a result of acting
as trustee for both the Class A Notes and the Class B Notes, the Issuer shall
appoint a successor Indenture Trustee for one or both of such classes, so that
there will be separate Indenture Trustees for the Class A Notes and the Class B
Notes. No such event shall alter the voting rights of the Class A Noteholders or
Class B Noteholders under this Indenture or any other Basic Document. However,
so long as any amounts remain unpaid with respect to the Class A Notes, only the
Indenture Trustee for the Class A Noteholders will have the right to exercise
remedies under this Indenture (but subject to the express provisions of Section
5.4 and to the right of the Class B Noteholders to receive their share of any
proceeds of enforcement, subject to the subordination of the Class B Notes to
the Class A Notes as described herein) to make deposits to and withdrawals from
the Designated Accounts, hold Designated Account Property and to make
distributions to Noteholders from the Note Distribution Account. Upon repayment
of the Class A Notes in full, all rights to exercise remedies under the
Indenture will transfer to the Indenture Trustee for the Class B Notes.

                        (c)     In the case of the appointment hereunder of a
successor Indenture Trustee with respect to any class of Notes, the Issuer, the
retiring Indenture Trustee and the successor Indenture Trustee with respect to
such class of Notes shall execute and deliver an indenture supplemental hereto
wherein the successor Indenture Trustee shall accept such appointment and which
(i) shall contain such provisions as shall be necessary or desirable to transfer
and confirm to, and to vest in, the successor Indenture Trustee all the rights,
powers, trusts and duties of the retiring Indenture Trustee with respect to the
Notes of the class to which the appointment of such successor Indenture Trustee
relates, (ii) if the retiring Indenture Trustee is not retiring with respect to
all classes of Notes, shall contain such provisions as shall be deemed necessary
or desirable to confirm that all the rights, powers, trusts and duties of the
retiring Indenture Trustee with respect to the Notes of each class as to which
the retiring Indenture Trustee is not retiring shall continue to be vested in
the retiring Indenture Trustee, and (iii) shall add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Indenture Trustee,
it being understood that nothing herein or in such supplemental indenture shall
constitute such Indenture Trustees co-trustees of the same trust and that each
such

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<PAGE>

Indenture Trustee shall be trustee of a trust or trusts hereunder separate
and apart from any trust or trusts hereunder administered by any other such
Indenture Trustee; and upon the execution and delivery of such supplemental
indenture the resignation or removal of the retiring Indenture Trustee shall
become effective to the extent provided therein.

                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). A trustee who has resigned
or been removed shall be subject to TIA Section 311(a) to the extent indicated.

                Section 6.13 Representations and Warranties of Indenture
Trustee. The Indenture Trustee represents and warrants as of the Closing Date
that:

                        (a)     the Indenture Trustee is a New York banking
corporation duly organized, validly existing and in good standing under the laws
of the State of New York and the eligibility requirements set forth in Section
6.11 are satisfied with respect to the Indenture Trustee;

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

                        (c)     the execution, delivery and performance by the
Indenture Trustee of this Indenture (i) shall not violate any provision of any
law or regulation governing the banking and trust powers of the Indenture
Trustee or any order, writ, judgment or decree of any court, arbitrator, or
governmental authority applicable to the Indenture Trustee or any of its assets,
(ii) shall not violate any provision of the corporate charter or by-laws of the
Indenture Trustee or (iii) shall not violate any provision of, or constitute,
with or without notice or lapse of time, a default under, or result in the
creation or imposition of any lien on any properties included in the Collateral
pursuant to the provisions of any mortgage, indenture, contract, agreement or
other undertaking to which it is a party, which violation, default or lien could
reasonably be expected to have a materially adverse effect on the Indenture
Trustee's performance or ability to perform its duties under this Indenture or
on the transactions contemplated in this Indenture;

                        (d)     the execution, delivery and performance by the
Indenture Trustee of this Indenture shall not require the authorization, consent
or approval of, the giving of notice to, the filing or registration with, or the
taking of any other action in respect of, any governmental authority or agency
regulating the banking and corporate trust activities of the Indenture Trustee;
and

                        (e)     this Indenture has been duly executed and
delivered by the Indenture Trustee and constitutes the legal, valid and binding
agreement of the Indenture Trustee, enforceable in accordance with its terms.

                Section 6.14 Indenture Trustee May Enforce Claims Without
Possession of Notes. All rights of action and claims under this Indenture or the
Notes may be prosecuted and

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<PAGE>

enforced by the Indenture Trustee without the possession of any of the Notes or
the production thereof in any proceeding relating thereto, and any such
proceeding instituted by the Indenture Trustee shall be brought in its own name
as Indenture Trustee. Any recovery of judgment shall, after provision for the
payment of the reasonable compensation, expenses, disbursements and advances of
the Indenture Trustee, its agents and counsel, be for the ratable benefit of the
Noteholders and (only to the extent expressly provided herein) the
Certificateholders in respect of which such judgment has been obtained.

                Section 6.15 Suit for Enforcement. If an Event of Default shall
occur and be continuing, the Indenture Trustee in its discretion may, subject to
the provisions of Section 6.1, proceed to protect and enforce its rights and the
rights of the Noteholders under this Indenture by a Proceeding whether for the
specific performance of any covenant or agreement contained in this Indenture or
in aid of the execution of any power granted in this Indenture or for the
enforcement of any other legal, equitable or other remedy as the Indenture
Trustee, being advised by counsel, shall deem most effectual to protect and
enforce any of the rights of the Indenture Trustee or the Noteholders.

                Section 6.16 Rights of Noteholders to Direct Indenture Trustee.
Holders of Notes evidencing not less than a majority of the Outstanding Amount
of the Controlling Class shall have the right to direct in writing the time,
method and place of conducting any Proceeding for any remedy available to the
Indenture Trustee or exercising any trust or power conferred on the Indenture
Trustee; provided, however, that subject to Section 6.1, the Indenture Trustee
shall have the right to decline to follow any such direction if the Indenture
Trustee being advised by counsel determines that the action so directed may not
lawfully be taken, or if the Indenture Trustee in good faith shall, by a
Responsible Officer, determine that the proceedings so directed would be illegal
or subject it to personal liability or be unduly prejudicial to the rights of
Noteholders not parties to such direction; and provided, further, that nothing
in this Indenture shall impair the right of the Indenture Trustee to take any
action deemed proper by the Indenture Trustee and which is not inconsistent with
such direction by the Noteholders.

                                   ARTICLE VII
                         NOTEHOLDERS' LISTS AND REPORTS

                Section 7.1 Issuer To Furnish Indenture Trustee Names and
Addresses of Noteholders. The Issuer shall furnish or cause to be furnished by
the Servicer to the Indenture Trustee (a) not more than five days before each
Distribution Date, a list, in such form as the Indenture Trustee may reasonably
require, of the names and addresses of the Holders of Notes as of the close of
business on the Record Date, and (b) at such other times as the Indenture
Trustee may request in writing, within 14 days after receipt by the Issuer of
any such request, a list of similar form and content as of a date not more than
10 days prior to the time such list is furnished; provided, however, that so
long as the Indenture Trustee is the Note Registrar, no such list shall be
required to be furnished.

                Section 7.2 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

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<PAGE>

recent list furnished to the Indenture Trustee as provided in Section 7.1 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 7.1 upon receipt of a new list so
furnished.

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

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

                Section 7.3 Reports by Issuer.

                        (a)     The Issuer shall:

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

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

                                (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 7.3(a) as may be required by rules and regulations
        prescribed from time to time by the Commission.

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

                Section 7.4 Reports by Indenture Trustee. If required by TIA
Section 313(a), within 60 days after each February 1, beginning with February 1,
2004, with respect to the 12-month period immediately preceding such February 1
or, in the case of the first such reporting period, the period from the Closing
Date through January 31, 2004, 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 any report delivered pursuant to this
Section 7.4(a) shall, at the time of its mailing to Noteholders, 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.

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                                  ARTICLE VIII
                      ACCOUNTS, DISBURSEMENTS AND RELEASES

                Section 8.1 Collection of Money. Except as otherwise expressly
provided herein or in the other Basic Documents, 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 and the Servicing Agreement. Except
as otherwise expressly provided in this Indenture or in Article II of the
Servicing Agreement, if any default occurs in the making of any payment or
performance under any agreement or instrument that is part of the Collateral,
the Indenture Trustee may take such action as may be appropriate to enforce such
payment or performance, including the institution and prosecution of appropriate
Proceedings. Any such action shall be without prejudice to any right to claim an
Event of Default under this Indenture and any right to proceed thereafter as
provided in Article V.

                Section 8.2 Designated Accounts; Payments.

                        (a)     On or before each Determination Date, with
respect to the preceding Monthly Period and the related Distribution Date, the
Servicer shall calculate the Total Available Amount, Collected Amount, the Total
Servicing Fee, the Aggregate Class A Noteholders' Interest Distributable Amount,
the Class B Noteholders' Interest Distributable Amount, the Principal Payment
Amount, the Noteholders' Principal Distributable Amount, and all other amounts
required to determine the amounts to be deposited in or paid from each of the
Collection Account, the Pre-Funding Account, the Negative Carry Account, the
Note Distribution Account, the Certificate Distribution Account and the Reserve
Account on the next succeeding Distribution Date and supply such information to
the Issuer and the Indenture Trustee.

                        (b)     On or before each Transfer Date, the Indenture
Trustee shall cause to be made the following withdrawals, deposits, transfers
and distributions in the amounts set forth in the Servicer's Certificate
delivered to the Indenture Trustee pursuant to Section 2.17 of the Servicing
Agreement:

                                (i)     from the Collection Account to the
        Servicer, in immediately available funds, reimbursement of Outstanding
        Monthly Advances pursuant to Section 2.14 of the Servicing Agreement,
        payments of Liquidation Expenses with respect to Receivables which
        became Liquidating Receivables during the related Monthly Period
        pursuant to Section 2.04 of the Servicing Agreement and any unpaid
        Liquidation Expenses from prior periods;

                                (ii)    from the Pre-Funding Account to the
        Collection Account, the Investment Earnings on the Pre-Funding Account
        for the related Monthly Period;

                                (iii)   from the Negative Carry Account to the
        Collection Account, the Negative Carry Amount for such Distribution
        Date; and

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<PAGE>

                                (iv)    from the Reserve Account to the
        Collection Account, the lesser of (A) the amount of cash or other
        immediately available funds therein on the day preceding such
        Distribution Date and (B) the amount, if any, by which (I) the sum of
        the Total Servicing Fee, the Aggregate Class A Noteholders' Interest
        Distributable Amount, the Class B Noteholders' Interest Distributable
        Amount and the Noteholders' Principal Distributable Amount exceeds (II)
        the sum of the Collected Amount for such Distribution Date plus the
        amounts deposited to the Collection Account on such date pursuant to
        Sections 8.2(b)(ii) and 8.2(b)(iii).

                        (c)     Before 12:00 noon, New York City time, on each
Transfer Date, the Indenture Trustee (based on the information contained in the
Servicer's Certificate delivered to the Indenture Trustee pursuant to Section
2.17 of the Servicing Agreement) shall make the following distributions from the
Collection Account (after the withdrawals, deposits and transfers specified in
Section 8.2(b) have been made) in the following order of priority:

                                (i)     first, to the Servicer, to the extent of
        the Total Available Amount, the Total Servicing Fee;

                                (ii)    second, to the Note Distribution
        Account, to the extent of the Total Available Amount (as such amount has
        been reduced by the distributions described in clause (c)(i) above), the
        Aggregate Class A Noteholders' Interest Distributable Amount;

                                (iii)   third, to the Note Distribution Account,
        to the extent of the Total Available Amount (as such amount has been
        reduced by the distributions described in clauses (c)(i) and (ii)
        above), the Class B Noteholders' Interest Distributable Amount;

                                (iv)    fourth, to the Note Distribution
        Account, to the extent of the Total Available Amount (as such amount has
        been reduced by the distributions described in clauses (c)(i) through
        (iii) above), the Noteholders' Principal Distributable Amount;

                                (v)     fifth, to the Reserve Account, to the
        extent of the Total Available Amount (as such amount has been reduced by
        the distributions described in clauses (c)(i) through (iv) above), the
        amount by which the Specified Reserve Account Balance for the next
        succeeding Distribution Date exceeds the amount on deposit in the
        Reserve Account on such Transfer Date; and

                                (vi)    sixth, to the Certificateholders, any
        portion of the Total Available Amount remaining after the distributions
        described in clauses (c)(i) through (v) above.

                        (d)     On each Distribution Date, the Indenture Trustee
shall distribute all amounts on deposit in the Note Distribution Account, other
than amounts deposited in the Note Distribution Account pursuant to Section
8.11(b) and subject to the Certificateholder's rights under Section 8.6 to
Investment Earnings, to the Noteholders to the extent of amounts due and unpaid
on the Notes for principal and interest, in the following amounts, and in the
following order of priority:

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<PAGE>

                                (i)     (A) first, to accrued and unpaid
        interest on the Class A Notes; provided, however, that if there are not
        sufficient funds in the Note Distribution Account to pay the entire
        amount of accrued and unpaid interest then due on the Class A Notes, the
        amount in the Note Distribution Account shall be applied to the payment
        of such interest on each Note of each class of the Class A Notes pro
        rata on the basis of the respective aggregate amount of interest due on
        each such class of Class A Notes; and (B) second, unless otherwise
        provided in clause (iv) below, to accrued and unpaid interest on the
        Class B Notes; provided, however, that if there are not sufficient funds
        in the Note Distribution Account (after the payment of all accrued and
        unpaid interest on the Class A Notes) to pay the entire amount of
        accrued and unpaid interest then due on the Class B Notes, the amount in
        the Note Distribution Account shall be applied to the payment of such
        interest on each of the Class B Notes pro rata on the basis of the
        aggregate amount of interest due on each such Class B Note;

                                (ii)    unless otherwise provided in clause
        (iii), (iv) or (v) below, the Principal Payment Amount shall be applied
        on each Distribution Date, as follows:

                                        (A)     first, 100% of the Principal
                Payment Amount shall be applied to pay the principal of the
                Class A-1 Notes until the Class A-1 Notes are paid in full;

                                        (B)     thereafter, 96.25% of the
                Principal Payment Amount (in the case of the Distribution Date
                on which the Class A-1 Notes are paid in full, 96.25% of the
                remaining Principal Payment Amount) shall be applied to pay the
                principal of the other Class A Notes (all of which shall be
                applied to pay the principal of the Class A-2 Notes until paid
                in full, then shall be applied to pay the principal of the Class
                A-3 Notes until paid in full, and then shall be applied to pay
                the principal of the Class A-4 Notes until paid in full) and
                3.75% of the Principal Payment Amount (in the case of the
                Distribution Date on which the Class A-1 Notes are paid full,
                3.75% of the remaining Principal Payment Amount) shall be
                applied to pay the principal of the Class B Notes until the
                Class A Notes are paid in full; and

                                        (C)     thereafter, 100% of the
                Principal Payment Amount (in the case of the Distribution Date
                on which the Class A Notes are paid in full, the remaining
                Principal Payment Amount) to the Class B Notes until the Class B
                Notes are paid in full;

                                (iii)   if the amount on deposit in the Reserve
        Account on any Distribution Date would be, after giving effect to the
        application of the Principal Payment Amount in accordance with the
        foregoing priorities, less than 1.0% of the Aggregate Starting
        Receivables Balance, then on each Distribution Date thereafter until
        either the Class A Notes are paid in full or the amount on deposit in
        the Reserve Account equals or exceeds the Specified Reserve Account
        Balance, 100% of the Principal Payment Amount shall be applied on each
        Distribution Date to pay the principal of the Class A Notes (all of
        which shall be applied to pay the principal of the Class A-1 Notes until
        paid in full, then shall be applied to pay the principal of the Class
        A-2 Notes until paid in full, then

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<PAGE>

        shall be applied to pay the principal of the Class A-3 Notes until paid
        in full, and then shall be applied to pay the principal of the Class A-4
        Notes until paid in full). When principal payments on the Class B Notes
        resume in accordance with the preceding sentence, the Principal Payment
        Amount for such Distribution Date shall be applied in accordance with
        Section 8.2(d)(ii) hereof until the Class A Notes have been paid in
        full, and thereafter 100% of the Principal Payment Amount for such
        Distribution Date shall be applied to pay the principal of the Class B
        Notes until the Class B Notes are paid in full;

                                (iv)    if the Notes have been declared
        immediately due and payable as provided in Section 5.2(a) following the
        occurrence of an Event of Default specified in Section 5.1(a), (b) or
        (c) until such time as the Class A Notes have been paid in full and this
        Indenture has been discharged with respect to the Class A Notes any
        amounts remaining in the Note Distribution Account after the application
        described in Section 8.2(d)(i)(A) shall be applied in the following
        priority: (1) to the repayment of principal of each of the Class A-1
        Notes pro rata on the basis of the respective unpaid principal amount of
        each such Class A-1 Note; (2) to the repayment of principal of each of
        the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes pro
        rata on the basis of the respective unpaid principal amount of each such
        Class A Note; (3) to the repayment of interest on each of the Class B
        Notes pro rata on the basis of the amount of interest due and unpaid on
        each such Class B Note and (4) to the repayment of principal on each of
        the Class B Notes pro rata on the basis of the respective unpaid
        principal amount of each such Class B Note; and

                                (v)     if the Notes have been declared
        immediately due and payable as provided in Section 5.2(a) following the
        occurrence of an Event of Default specified in Section 5.1(d), (e) or
        (f), 100% of the Principal Payment Amount shall be applied on each
        Distribution Date to the payment of principal of the Class A-1 Notes on
        the basis of the respective unpaid principal balance of each such Class
        A-1 Note, thereafter 100% of the Principal Payment Amount shall be
        applied on each Distribution Date to the payment of principal of the
        Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes pro rata on
        the basis of the respective unpaid principal amount of each such Class A
        Note, and, thereafter, 100% of the Principal Payment Amount shall be
        applied on each Distribution Date to the payment of principal of the
        Class B Notes pro rata on the basis of the respective unpaid principal
        amount of each such Class B Note.

                        (e)     Subject to Sections 8.2(d)(iii), (iv) and (v),
on the Distribution Date on which the Funding Period ends (or, if the Funding
Period does not end on a Distribution Date, on the Distribution Date following
the end of the Funding Period), the Indenture Trustee shall apply any and all
amounts deposited into the Note Distribution Account pursuant to Section 8.11(b)
(other than Noteholders' Prepayment Premium) to the repayment of principal on
the Notes in accordance with the priorities set forth in Section 8.2(d)(ii);
provided, however, that if the Pre-Funded Amount as of the end of the Funding
Period is greater than $100,000, the Indenture Trustee shall apply such amounts
to the repayment of principal of each Class of Notes pro rata on the basis of
the respective initial principal amount of each such Class of Notes, as
instructed by the Servicer in writing.

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<PAGE>

                        (f)     On the Distribution Date on which the Funding
Period ends (or, if the Funding Period does not end on a Distribution Date, on
the first Distribution Date following the end of the Funding Period), the
Indenture Trustee shall distribute to the Noteholders the Noteholders'
Prepayment Premiums deposited in the Note Distribution Account, as instructed by
Servicer in writing pursuant to Section 8.11(b); provided, however, if less than
the required Noteholders' Prepayment Premium for all classes of Notes has been
deposited into the Note Distribution Account, the amount distributable to the
holders of each class of Notes shall be their ratable share of the amount so
deposited into the Note Distribution Account based upon the amount of
Noteholders' Prepayment Premium due with respect to each such class of Notes. In
either case, the Indenture Trustee shall distribute the Noteholders' Prepayment
Premium allocated to each class of Notes to the Noteholders of such class of
Notes pro rata on the basis of the unpaid principal amount of such Noteholder's
Notes of such class, as instructed by the Servicer in writing.

                Section 8.3 General Provisions Regarding Accounts.

                        (a)     Subject to Section 6.1(c), the Indenture Trustee
shall not in any way be held liable by reason of any insufficiency in any of the
Designated Accounts resulting from any loss on any Eligible Investment included
therein 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 their terms.

                        (b)     If (i) the Servicer shall have failed to give
investment directions for any funds on deposit in the Designated Accounts to the
Indenture Trustee by 11:00 a.m., New York City time (or such other time as may
be agreed by the Servicer and the Indenture Trustee) on any Business Day; or
(ii) a 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
5.2(a), or, if such Notes shall have been declared due and payable following an
Event of Default, but amounts collected or receivable from the Collateral are
being applied in accordance with Section 5.5 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 Designated Accounts in one or more
Eligible Investments selected by the Indenture Trustee.

                Section 8.4 Release of Collateral.

                        (a)     Subject to the payment of its fees and expenses
pursuant to Section 6.7, the Indenture Trustee may, and when required by the
provisions of this Indenture shall, execute instruments to release property in
the Collateral from the lien of this Indenture, or convey the Indenture
Trustee's interest in the same, in a manner and under circumstances that are
consistent 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
monies.

                        (b)     The Indenture Trustee shall, at such time as
there are no Notes Outstanding and all sums due to the Indenture Trustee
pursuant to Section 6.7 have been paid,

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<PAGE>

notify the Issuer thereof in writing and upon receipt of an Issuer Request,
release any remaining portion of the Collateral that secured the Notes from the
lien of this Indenture and release to the Issuer or any other Person entitled
thereto any funds then on deposit in the Note Distribution Account. The
Indenture Trustee shall (i) release any remaining portion of the Collateral that
secured the Certificates from the lien of this Indenture and (ii) deposit in the
Certificate Distribution Account any funds then on deposit in the Reserve
Account or the Collection Account only at such time as (y) there are no Notes
Outstanding and (z) all sums due to the Indenture Trustee pursuant to Section
6.7 have been paid.

                Section 8.5 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 8.4(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
shall not materially and adversely impair the security for the Notes or the
rights of the Noteholders in contravention of the provisions of this Indenture;
provided, however, that such Opinion of Counsel shall not be required to express
an opinion as to the fair value of the Collateral. Counsel rendering any such
opinion may rely, without independent investigation, on the accuracy and
validity of any certificate or other instrument delivered to the Indenture
Trustee in connection with any such action.

                Section 8.6 Investment Earnings and Supplemental Servicing Fees.
The Servicer shall be entitled to retain all Supplemental Servicing Fees. Except
as otherwise provided in Section 2.02(b)(i) of the Servicing Agreement, the
Certificateholders (via the Certificate Distribution Account or such other
account as shall be designated in writing by the Certificateholders to the
Servicer) shall be entitled to receive all Investment Earnings (other than
Investment Earnings from amounts on deposit in the Pre-Funding Account), when
and as paid without any obligation to (a) either Trustee, (b) with respect to
the Supplemental Servicing Fees, the Certificateholders or (c) with respect to
the Investment Earnings, the Servicer, in respect thereof. The Servicer will not
have any obligation to deposit any such amount in any account established
hereunder. To the extent that any such amount shall be held in any account
(other than, with respect to amounts to be distributed to the
Certificateholders, the Certificate Distribution Account) held by either
Trustee, or otherwise established hereunder, such amount will be withdrawn
therefrom and paid to the Servicer or deposited in the Certificate Distribution
Account for distribution to the Certificateholders, as applicable, upon
presentation of a certificate signed by a Responsible Officer of such Person
setting forth, in reasonable detail, the amount of such Supplemental Servicing
Fees or such Investment Earnings, respectively.

                Section 8.7 Net Deposits. At any time that (i) NFC shall be the
Servicer and (ii) the Servicer shall be permitted by Section 2.12 of the
Servicing Agreement to remit collections on a basis other than a daily basis,
the Indenture Trustee at the written request of the Servicer may make any
remittances pursuant to this Article VIII net of amounts to be distributed by
the Indenture Trustee to such remitting party. Nonetheless, the Indenture
Trustee shall account for all of the above described remittances and
distributions as if the amounts were deposited and/or transferred separately.

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<PAGE>

                Section 8.8 Statements to Securityholders.

                        (a)     On each Distribution Date, the Issuer shall
include with each distribution to each Certificateholder, and the Indenture
Trustee shall include with each distribution to each Noteholder, a statement
(which statement shall also be provided to the Rating Agencies) based on
(subject to the last sentence of this paragraph (a)) information in the
Servicer's Certificate furnished pursuant to Section 2.17 of the Servicing
Agreement. Each such statement shall set forth the following information as to
the Notes with respect to such Distribution Date or the preceding Monthly
Period, as applicable:

                                (i)     the amount of the distribution allocable
        to interest on or with respect to each class of Notes;

                                (ii)    the Aggregate Receivables Balance as of
        the close of business on the last day of such Monthly Period;

                                (iii)   the amount of Outstanding Monthly
        Advances with respect to all Receivables on such Distribution Date;

                                (iv)    the amount of the Total Servicing Fee
        paid or payable to the Servicer with respect to the related Monthly
        Period;

                                (v)     the amount of Aggregate Losses for the
        related Monthly Period;

                                (vi)    the Delinquency Percentage for the
        related Monthly Period;

                                (vii)   the sum of all Administrative Purchase
        Payments and all Warranty Payments made for the related Monthly Period;

                                (viii)  the amount of the distribution allocable
        to principal of each class of Notes;

                                (ix)    the Note Principal Balance and the Note
        Pool Factor for each class of Notes, each after giving effect to all
        payments reported under (viii) above on such date;

                                (x)     the amounts, if any, paid to the
        Servicer or distributed to Noteholders from amounts on deposit in the
        Reserve Account plus amounts in respect thereof to be distributed to
        each class of Noteholders as a prepayment of principal (expressed as a
        dollar amount per $1,000 of the face amount of the Notes);

                                (xi)    the amount of the Class A Noteholders'
        Interest Carryover Shortfall, the Noteholders' Principal Carryover
        Shortfall and the Class B Noteholders' Interest Carryover Shortfall if
        any, and the change in such amounts from the preceding Distribution
        Date;

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<PAGE>

                                (xii)   the balance (if any) of the Reserve
        Account, the Specified Reserve Account Balance, the Specified Yield
        Supplement Amount and the Backup Servicer Account on such date, after
        giving effect to distributions, withdrawals, transfers and deposits made
        on such date, and the change in such balance from that of the prior
        Distribution Date;

                                (xiii)  the Negative Carry Amount and the
        balance, if any, of the Negative Carry Account on such date, after
        giving effect to the withdrawals made on such date;

                                (xiv)   for Distribution Dates during the
        Funding Period, the Starting Receivables Balance of all Subsequent
        Receivables transferred to the Issuer since the preceding Distribution
        Date, the remaining Pre-Funded Amount and the Investment Earnings on
        amounts on deposit in the Pre-Funding Account (if any) for the related
        Monthly Period; and

                                (xv)    for the first Distribution Date
        occurring on or after the last day of the Funding Period, the amount of
        any remaining Pre-Funded Amount that has not been used to fund the
        purchase of Subsequent Receivables.

Each amount set forth pursuant to clauses (i), (iv), (viii), (x) and (xi) above
shall be expressed as a dollar amount per $1,000 of initial Note Principal
Balance. In lieu of preparing and delivering a separate statement to
Securityholders pursuant to this Section, a Trustee may deliver a copy of the
Servicer's Certificate furnished pursuant to Section 2.17 of the Servicing
Agreement.

                        (b)     Within the prescribed period of time for tax
reporting purposes after the end of each calendar year during the term of this
Agreement, the Servicer shall prepare and execute and the Indenture Trustee and
the Owner Trustee shall mail to each Person who at any time during such calendar
year shall have been a holder of Notes or Certificates, respectively, and
received any payments thereon, a statement prepared and supplied by the Servicer
containing the amounts set forth in each of clauses (i), (iv), (viii), (x) and
(xi) in paragraph (a) above, for such calendar year or, if such Person shall
have been a Securityholder during a portion of such calendar year and received
any payments thereon, for the applicable portion of such year, for the purposes
of such Securityholder's preparation of federal income tax returns.

                Section 8.9 Designated Accounts. 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 Securityholders, the Designated
Accounts as provided in Section 2.02 of the Servicing Agreement.

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<PAGE>

                Section 8.10 Reserve Account.

                        (a)     On the Closing Date, the Seller shall deposit
the Reserve Account Initial Deposit into the Reserve Account. The Reserve
Account shall be the property of the Issuer, subject to the rights of the
Indenture Trustee in the Reserve Account Property.

                        (b)     If the amount on deposit in the Reserve Account
on any Distribution Date (after giving effect to all deposits therein or
withdrawals therefrom on such Distribution Date) exceeds the Specified Reserve
Account Balance for such Distribution Date, the Indenture Trustee shall, upon
receipt of instruction from the Servicer, deposit into the Certificate
Distribution Account an amount equal to any such excess for distribution to the
Certificateholders or upon the order of the Certificateholders in an account
designated in writing by the Certificateholders to the Servicer.

                        (c)     If the Servicer, pursuant to Section 2.14 of the
Servicing Agreement, determines on any Determination Date that it is required to
make a Monthly Advance and does not do so from its own funds, the Indenture
Trustee shall, upon receipt of instructions from the Servicer, withdraw funds
from the Reserve Account and deposit them in the Collection Account to cover any
shortfall. Such payment shall be deemed to have been made by the Servicer
pursuant to Section 2.14 of the Servicing Agreement for purposes of making
distributions pursuant to this Agreement, but shall not otherwise satisfy the
Servicer's obligation to deliver the amount of the Monthly Advances to the
Collection Account, and the Servicer shall within two Business Days replace any
funds in the Reserve Account so used. The Servicer shall not be entitled to
reimbursement for any such deemed Monthly Advances unless and until the Servicer
shall have replaced such funds in the Reserve Account.

                Section 8.11 Pre-Funding Account.

                        (a)     On the Closing Date, the Seller shall deposit
into the Pre-Funding Account $173,683,116.95 the Pre-Funding Account Initial
Deposit Amount from the net proceeds of the sale of the Notes. On each
Subsequent Transfer Date, the Indenture Trustee shall, upon receipt of
instructions from the Servicer, withdraw from the Pre-Funding Account an amount
equal to (i) the aggregate Starting Receivables Balance of the Subsequent
Receivables transferred to the Issuer on such Subsequent Transfer Date less the
Reserve Account Subsequent Transfer Deposit with respect to such Subsequent
Transfer Date and distribute such amount to or upon the order of the Seller upon
satisfaction of the conditions set forth in Section 2.02(b) of the Pooling
Agreement with respect to such transfer, and (ii) the Reserve Account Subsequent
Transfer Deposit with respect to such Subsequent Transfer Date and, on behalf of
the Seller, deposit such amount in the Reserve Account.

                        (b)     If the Pre-Funded Amount has not been reduced to
zero on or prior to the Distribution Date on which the Funding Period ends (or,
if the Funding Period does not end on a Distribution Date, on the first
Distribution Date following the end of the Funding Period), the Indenture
Trustee shall, upon receipt of instructions from the Servicer, transfer from the
Pre-Funding Account on such Distribution Date any amount then remaining in the
Pre-Funding Account to the Note Distribution Account and, if such amount is
greater than $100,000 the Issuer will deposit into the Note Distribution Account
an amount equal to the aggregate of

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<PAGE>

Noteholders' Prepayment Premiums for all classes of Notes; provided, however,
that the Issuer's obligation to pay the Noteholders' Prepayment Premiums shall
be limited to funds which are received by the Issuer from the Seller pursuant to
Section 2.02(c) of the Pooling Agreement as liquidated damages for the failure
to deliver the Subsequent Receivables, and no other assets of the Issuer will be
available for making such payments. If the amount of funds available for payment
of the Noteholders' Prepayment Premiums is less than the sum of the Noteholders'
Prepayment Premium for each class of Notes, then the available funds will be
allocated among each class of Notes in accordance with the Pre-Funded Percentage
for such class of Notes.

                Section 8.12 Negative Carry Account.

                        (a)     On the Closing Date, the Seller shall deposit in
to the Negative Carry Account the Negative Carry Account Initial Deposit from
the net proceeds of the sale of the Notes. On or before the Transfer Date
preceding each Distribution Date occurring on or prior to the first Distribution
Date that occurs on or after the end of the Funding Period, the Indenture
Trustee shall, upon receipt of instructions from the Servicer, withdraw from the
Negative Carry Account and deposit into the Collection Account an amount equal
to the Negative Carry Amount for such Distribution Date.

                        (b)     On each Distribution Date during the Funding
Period, the Indenture Trustee shall, upon receipt of instructions from the
Servicer, withdraw from the Negative Carry Account an amount equal to the
excess, if any, of the amount on deposit in the Negative Carry Account over the
Required Negative Carry Account Balance and deposit it (i) in the Certificate
Distribution Account for distribution to the Certificateholders or (ii) upon the
order of the Certificateholders in an account designated in writing by the
Certificateholders to the Servicer, and on the Distribution Date on or
immediately following the last day of the Funding Period, the Indenture Trustee
shall, upon receipt of instructions from the Servicer, withdraw from the
Negative Carry Account the amount remaining on deposit in the Negative Carry
Account and deposit it in the Certificate Distribution Account for distribution
to the Certificateholders or upon the order of the Certificateholders in an
account designated in writing by the Certificateholders to the Servicer.

                Section 8.13 Sale of Assets; Termination.

                        (a)     Upon any sale or other disposition of the
Collateral pursuant to Article V of the Indenture (an "Event of Default Sale"),
the Indenture Trustee, based on information supplied by the Servicer, shall
deposit the proceeds from such disposition after all payments and reserves
therefrom have been made or the amount specified in clause SECOND of Section
5.4(b) (the "Event of Default Proceeds") in the Collection Account. On the
Transfer Date on which the Event of Default Proceeds are deposited in the
Collection Account (or, if such proceeds are not so deposited on that Transfer
Date, on the Transfer Date immediately following such deposit), the Indenture
Trustee, based on information supplied by the Servicer, shall make the following
deposits (after the application on the Transfer Date of the Collected Amount and
funds on deposit in the Reserve Account pursuant to Sections 8.2 and 8.10) from
the Event of Default Proceeds and any funds remaining on deposit in the Reserve
Account (including the proceeds of any sale of investments therein as described
in the following sentence) in the following priority:

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<PAGE>

                                (i)     to the Note Distribution Account, any
        portion of the Aggregate Class A Noteholders' Interest Distributable
        Amount not otherwise deposited into the Note Distribution Account on the
        Transfer Date;

                                (ii)    if such Event of Default Sale results
        from the occurrence of an Event of Default specified in Section 5.1(a),
        (b) or (c), to the Note Distribution Account, an amount equal to the
        Note Principal Balance of the Class A Notes (after giving effect to the
        reduction in the Aggregate Note Principal Balance to result from the
        deposits made in the Note Distribution Account on the Transfer Date and
        on each prior Transfer Date);

                                (iii)   to the Note Distribution Account, any
        portion of the Class B Noteholders' Interest Distributable Amount not
        otherwise deposited into the Note Distribution Account on the Transfer
        Date;

                                (iv)    if such Event of Default Sale does not
        result from the circumstances specified in Section 8.13(a)(ii), to the
        Note Distribution Account, an amount equal to the Note Principal Balance
        of the Class A Notes (after giving effect to the reduction in the
        Aggregate Note Principal Balance to result from the deposits made in the
        Note Distribution Account on the Transfer Date and on each prior
        Transfer Date); and

                                (v)     to the Note Distribution Account, an
        amount equal to the Note Principal Balance of the Class B Notes (after
        giving effect to the reduction therein to result from the deposits made
        in the Note Distribution Account on the day preceding such Distribution
        Date and on the Transfer Date and on each prior Transfer Date).

Subject to the Section 2.02(b) of the Servicing Agreement, any investments on
deposit in the Reserve Account which shall not mature on or before the day
preceding such Distribution Date shall be sold by the Indenture Trustee at such
time as shall result in the Indenture Trustee receiving the proceeds from such
sale not later than the Transfer Date. Any Event of Default Proceeds remaining
after the deposits described above shall be deposited into the Certificate
Distribution Account for distribution to the Certificateholders.

                        (b)     Notice of any termination of the Trust shall be
given by the Servicer to each Trustee as soon as practicable after the Servicer
has received notice thereof.

                                   ARTICLE IX
                             SUPPLEMENTAL INDENTURES

                Section 9.1 Supplemental Indentures Without Consent of
Noteholders.

                        (a)     Without the consent of the Holders of any Notes
but with 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 TIA as in force at the date of the execution thereof),
in form satisfactory to the Indenture Trustee, for any of the following
purposes:

                                (i)     to correct or amplify the description of
        any property at any time subject to the lien of this Indenture, or
        better to assure, convey and confirm unto the

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<PAGE>

        Indenture Trustee any property subject or required to be subjected to
        the lien of this Indenture, or to subject additional property to the
        lien of this Indenture;

                                (ii)    to evidence the succession, in
        compliance with Section 3.11 and the applicable provisions hereof, of
        another Person to the Issuer, and the assumption by any such successor
        of the covenants of the Issuer contained herein and in the Notes;

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

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

                                (v)     to cure any ambiguity or to correct or
        supplement any provision herein or in any supplemental indenture which
        may be inconsistent with any other provision herein, in any supplemental
        indenture or in any other Basic Document;

                                (vi)    to evidence and provide for the
        acceptance of the appointment hereunder by a successor or additional
        Indenture Trustee with respect to the Notes or any class thereof 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

                                (vii)   to modify, eliminate or add to the
        provisions of this Indenture to such extent as shall be necessary to
        effect the qualification of this Indenture under the TIA or under any
        similar federal statute hereafter enacted and to add to this Indenture
        such other provisions as may be expressly required by the TIA, and the
        Indenture Trustee is hereby authorized to join in the execution of any
        such supplemental indenture and to make any further appropriate
        agreements and stipulations that may be therein contained.

                        (b)     The Issuer and the Indenture Trustee, when
authorized by an Issuer Order, may, also without the consent of any of the
Noteholders but with prior notice to the Rating Agencies, at any time and from
time to time enter into one or more indentures supplemental hereto for the
purpose of adding any provisions to, changing in any manner, or eliminating any
of the provisions of, this Indenture or modifying in any manner the rights of
the Noteholders under this Indenture; provided, however, that such action shall
not, as evidenced by an Opinion of Counsel, adversely affect in any material
respect the interests of any Noteholder.

                Section 9.2 Supplemental Indentures With Consent of Noteholders.

                        (a)     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 not less than a majority of the
Outstanding Amount of the Controlling Class, by Act of such Holders delivered to
the Issuer and the Indenture Trustee, enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to, changing in any
manner, or eliminating any of the provisions of, this Indenture or modifying in
any manner the rights of the

                                     - 52 -

<PAGE>

Noteholders under this Indenture; provided, however, that no such supplemental
indenture shall, without the consent of the Holder of each Outstanding Note
affected thereby:

                                (i)     change the due date of any instalment of
        principal of or interest on any Note, or reduce the principal amount
        thereof, the interest rate applicable thereto, or the Redemption Price
        with respect thereto, change any place of payment where, or the coin or
        currency in which, any Note or any interest thereon is payable, or
        impair the right to institute suit for the enforcement of the provisions
        of this Indenture requiring the application of funds available therefor,
        as provided in Article V, to the payment of any such amount due on the
        Notes on or after the respective due dates thereof (or, in the case of
        redemption, on or after the Redemption Date);

                                (ii)    reduce the percentage of the Outstanding
        Amount of the Controlling Class, the consent of the Holders of which is
        required for (a) any such supplemental indenture, (b) any waiver of
        compliance with certain provisions of this Indenture, certain defaults
        hereunder and their consequences as provided for in this Indenture or
        (c) any action described in Sections 2.12, 3.7(e), 5.2, 5.6, 5.11,
        5.12(a), 6.8, or 6.16;

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

                                (iv)    reduce the percentage of the Outstanding
        Amount of the Notes required to direct the Indenture Trustee to sell or
        liquidate the Collateral pursuant to Section 5.4 if the proceeds of such
        sale would be insufficient to pay the principal amount of and accrued
        but unpaid interest on the Outstanding Notes;

                                (v)     modify any provision of this Section 9.2
        to decrease the required minimum percentage necessary to approve any
        amendments to any provisions of this Indenture or any of the Basic
        Documents;

                                (vi)    modify any of the provisions of this
        Indenture in such manner as to affect the calculation of the amount of
        any payment of interest or principal due on any Note on any Distribution
        Date (including the calculation of any of the individual components of
        such calculation), or modify or alter the provisions of the Indenture
        regarding the voting of Notes held by the Issuer, the Seller or any
        Affiliate of either of them; or

                                (vii)   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 Collateral or, except as otherwise permitted or
        contemplated herein, terminate the lien of this Indenture on any
        property at any time subject to the lien of this Indenture or deprive
        the Holder of any Note of the security afforded by the lien of this
        Indenture.

                        (b)     The Indenture Trustee may in its discretion
determine whether or not any Notes would be affected (such that the consent of
each Noteholder would be required) by any supplemental indenture proposed
pursuant to this Section 9.2 and any such determination shall be conclusive and
binding upon all of the Noteholders, whether authenticated and delivered

                                     - 53 -

<PAGE>

thereunder before or after the date upon which such supplemental indenture
becomes effective. The Indenture Trustee shall not be liable for any such
determination made in good faith.

                        (c)     It shall be sufficient if an Act of Noteholders
approves the substance, but not the form, of any proposed supplemental
indenture.

                        (d)     Promptly after the execution by the Issuer and
the Indenture Trustee of any supplemental indenture pursuant to this Section
9.2, the Indenture Trustee shall mail to the Noteholders 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 9.3 Execution of Supplemental Indentures. In executing,
or permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the modifications thereby of the trusts created
by this Indenture, the Indenture Trustee shall be entitled to receive, and
subject to Sections 6.1 and 6.2, shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture and that all conditions precedent to
such execution have been satisfied. 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 9.4 Effect of Supplemental Indenture. Upon the execution
of any supplemental indenture pursuant to the provisions hereof, this Indenture
shall be and be deemed to be modified and amended in accordance therewith with
respect to the Notes affected thereby, and the respective rights, limitations of
rights, obligations, duties, liabilities and immunities under this Indenture of
the Indenture Trustee, the Issuer and the Noteholders 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 9.5 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 TIA as then in effect so
long as this Indenture shall then be qualified under the TIA.

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

                                     - 54 -

<PAGE>

                                    ARTICLE X
                               REDEMPTION OF NOTES

                Section 10.1 Redemption.

                        (a)     The Class A-4 Notes and Class B Notes are
subject to redemption in whole, but not in part, upon the exercise by the
Servicer of its option to purchase the Receivables pursuant to Section 4.01 of
the Pooling Agreement. Such redemption shall occur on any Distribution Date
after all Class A-1 Notes, Class A-2 Notes and Class A-3 Notes have been paid in
full. The purchase price for the Class A-4 Notes and Class B Notes to be
redeemed shall be equal to the applicable Redemption Price, provided the Issuer
has available funds sufficient to pay such amount. The Issuer shall furnish the
Rating Agencies notice of such redemption. If the Class A-4 Notes and Class B
Notes are to be redeemed pursuant to this Section 10.1(a), the Issuer shall
furnish notice thereof to the Indenture Trustee not later than 25 days prior to
the Redemption Date and the Issuer shall deposit into the Note Distribution
Account, before the Redemption Date, the aggregate Redemption Price of the Class
A-4 Notes and Class B Notes to be redeemed, whereupon all such Notes shall be
due and payable on the Redemption Date.

                        (b)     [Reserved.]

                        (c)     Within sixty days after the redemption in full
pursuant to this Section 10.1 of any class of Notes, the Indenture Trustee shall
provide each of the Rating Agencies with written notice stating that all of such
Notes have been redeemed.

                Section 10.2 Form of Redemption Notice.

                        (a)     Notice of redemption of the Class A-4 Notes and
Class B Notes under Section 10.1(a) shall be given by the Indenture Trustee by
first-class mail, postage prepaid, mailed not less than five days prior to the
applicable Redemption Date to each Holder of the Class A-4 Notes and Class B
Notes of record, respectively, at such Noteholder's address appearing in the
Note Register.

                        (b)     All notices of redemption shall state:

                                (i)     the Redemption Date;

                                (ii)    the Redemption Price;

                                (iii)   the place where Class A-4 Notes and
        Class B Notes are to be surrendered for payment of the Redemption Price
        (which shall be the Agency Office to be maintained as provided in
        Section 3.2); and

                                (iv)    CUSIP numbers.

                        (c)     Notice of redemption of the Class A-4 Notes and
Class B Notes shall be given by the Indenture Trustee in the name and at the
expense of the Issuer. Failure to give notice of redemption, or any defect
therein, to any Holder of any Class A-4 Note or Class B

                                     - 55 -

<PAGE>

Note to be redeemed shall not impair or affect the validity of the redemption of
any other Class A-4 Note or Class B Note to be redeemed.

                        (d)     [Reserved.]

                Section 10.3 Notes Payable on Redemption Date. The Class A-4
Notes or Class B Notes to be redeemed shall, following notice of redemption as
required by Section 10.2, on the Redemption Date cease to be Outstanding for
purposes of this Indenture and shall thereafter represent only the right to
receive the applicable Redemption Price and (unless the Issuer shall default in
the payment of such Redemption Price) no interest shall accrue on such
Redemption Price for any period after the date to which accrued interest is
calculated for purposes of calculating such Redemption Price.

                                   ARTICLE XI
                                  MISCELLANEOUS

                Section 11.1 Compliance Certificates and Opinions, etc.

                        (a)     Upon any application or request by the Issuer to
the Indenture Trustee to take any action under any provision of this Indenture,
the Issuer shall furnish to the Indenture Trustee: (i) an Officer's Certificate
stating that all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with, (ii) an Opinion of
Counsel stating that in the opinion of such counsel all such conditions
precedent, if any, have been complied with and (iii) (if required by the TIA) an
Independent Certificate from a firm of certified public accountants meeting the
applicable requirements of this Section 11.1, except that, in the case of any
such application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture, no additional
certificate or opinion need be furnished. 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 judgment 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 with the Indenture
Trustee of any Collateral or other property or securities that is to be made the
basis for the release of any

                                     - 56 -

<PAGE>

property or securities subject to the lien of this Indenture, the Issuer shall,
in addition to any obligation imposed in Section 11.1(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 60 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 signer thereof as to the matters described in
        clause (b)(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 on 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
        (b)(i) above and this clause (b)(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)   Other than with respect to the release
        of any Warranty Receivables, Administrative Receivables or Liquidating
        Receivables, 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 60 days of such release) of the property or securities proposed
        to be released and stating that in the opinion of such Person the
        proposed release will not impair the security under this Indenture in
        contravention of the provisions hereof.

                                (iv)    Whenever the Issuer is required to
        furnish to the Indenture Trustee an Officer's Certificate certifying or
        stating the opinion of any signatory thereof as to the matters described
        in clause (b)(iii) above, the Issuer shall also furnish to the Indenture
        Trustee an Independent Certificate as to the same matters if the fair
        value of the property or securities and of all other property, other
        than Warranty Receivables, Administrative Receivables and Liquidating
        Receivables, or securities released from the lien of this Indenture
        since the commencement of the then current calendar year, as set forth
        in the certificates required by clause (b)(iii) above and this clause
        (b)(iv), equals 10% or more of the Outstanding Amount of the Notes, but
        such certificate need not be furnished in the case of any release of
        property or securities if the fair value thereof as set forth in the
        related Officer's Certificate is less than $25,000 or less than one
        percent of the then Outstanding Amount of the Notes.

                                (v)     Notwithstanding Section 2.9 or any other
        provision of this Section 11.1, the Issuer may (A) collect, liquidate,
        sell or otherwise dispose of Receivables as and to the extent permitted
        or required by the Basic Documents, (B) make cash payments out of the
        Designated Accounts and the Certificate Distribution Account as and to
        the extent permitted or required by the Basic Documents and (C) take any
        other action not inconsistent with the TIA.

                                     - 57 -

<PAGE>

                Section 11.2 Form of Documents Delivered to Indenture Trustee.

                        (a)     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.

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

                        (c)     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.

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

                Section 11.3 Acts of Noteholders.

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

                                     - 58 -

<PAGE>

writing appointing any such agent shall be sufficient for any purpose of this
Indenture and (subject to Section 6.1) conclusive in favor of the Indenture
Trustee and the Issuer, if made in the manner provided in this Section 11.3.

                        (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 (or any one
or more predecessor 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 11.4 Notices, etc., to Indenture Trustee, Issuer and
Rating Agencies. Any request, demand, authorization, direction, notice, consent,
waiver or Act of Noteholders or other documents provided or permitted by this
Indenture to be made upon, given or furnished to or filed with the Indenture
Trustee, the Issuer or the Rating Agencies under this Indenture shall be made
upon, given or furnished to or filed with such party as specified in Appendix B
to the Pooling Agreement.

                Section 11.5 Notices to Noteholders; Waiver.

                        (a)     Where this Indenture provides for notice to
Noteholders of any condition or event, such notice shall be given as specified
in Appendix B to the Pooling Agreement.

                        (b)     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.

                        (c)     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 of 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.

                        (d)     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 an Event of Default.

                Section 11.6 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

                                     - 59 -

<PAGE>

provided for in this Indenture for such payments or notices. The Issuer shall
furnish to the Indenture Trustee a copy of each such agreement and the Indenture
Trustee shall cause payments to be made and notices to be given in accordance
with such agreements.

                Section 11.7 Conflict with Trust Indenture Act.

                        (a)     If any provision hereof limits, qualifies or
conflicts with another provision hereof that is required to be included in this
Indenture by any of the provisions of the TIA, such required provision shall
control.

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

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

                Section 11.9 Successors and Assigns.

                        (a)     All covenants and agreements in this Indenture
and the Notes by the Issuer shall bind its successors and assigns, whether so
expressed or not.

                        (b)     All covenants and agreements of the Indenture
Trustee in this Indenture shall bind its successors and assigns, whether so
expressed or not.

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

                Section 11.11 Benefits of Indenture. 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 Noteholders and the Note
Owners and (only to the extent expressly provided herein) the
Certificateholders, any other party secured hereunder and any other Person with
an ownership interest in any part of the Collateral, any benefit or any legal or
equitable right, remedy or claim under this Indenture.

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

        Section 11.13 Governing Law. This Indenture shall be construed in
accordance with the laws of the State of Illinois, without reference to its
conflict of law provisions, except that the obligations, rights and remedies of
the Indenture Trustee hereunder shall be determined

                                     - 60 -

<PAGE>

in accordance with the internal laws of the State of New York, without reference
to its conflict of law provisions.

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

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

                Section 11.16 No Recourse. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or
the Indenture Trustee on the Notes or under this Indenture or any certificate or
other writing delivered in connection herewith or therewith, against:

                                (i)     the Indenture Trustee 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, employee or agent of the Indenture Trustee or the
        Owner Trustee in their individual capacities, 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
        their individual capacities (or any of their successors or assigns),
        except as any such Person may have expressly agreed (it being understood
        that the Indenture Trustee and the Owner Trustee have no such
        obligations in their individual capacities) 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 instalment or call
        owing to such entity. For all purposes of this Indenture, in the
        performance of any duties or obligations of the Issuer hereunder, the
        Owner Trustee shall be subject to, and entitled to the benefits of, the
        terms and provisions of Articles VI, VII and VIII of the Trust
        Agreement.

                Section 11.17 No Petition.

                        (a)     The Indenture Trustee, by entering into this
Indenture, and each Noteholder and Note Owner, by accepting a Note (or interest
therein) issued hereunder, hereby covenant and agree that they shall not, prior
to the date which is one year and one day after the termination of this
Indenture with respect to the Issuer pursuant to Section 4.1, acquiesce,
petition or otherwise invoke or cause the Seller or the Issuer to invoke the
process of any court or government authority for the purpose of commencing or
sustaining a case against the Seller or the Issuer under any federal or state
bankruptcy, insolvency or similar law or appointing a

                                     - 61 -

<PAGE>

receiver, liquidator, assignee, trustee, custodian, sequestrator or other
similar official of the Seller or the Issuer or any substantial part of its
property, or ordering the winding up or liquidation of the affairs of the
Seller, or the Issuer.

                        (b)     Notwithstanding any prior termination of the
Series 2003-A Portfolio Supplement, the Indenture Trustee (and each Noteholder
by its acceptance of a Note) covenants and agrees that it shall not, prior to
the date which is one year and a day after which all obligations under each
Permitted Financing have been paid in full, acquiesce, petition or otherwise
invoke, or join any other Person in acquiescing, petitioning or otherwise
invoking, against the Titling Trust or any Special Purpose Entity, any
proceeding in court or with any governmental authority for the purpose of (i)
commencing or sustaining a case against the Titling Trust or such Special
Purpose Entity under any federal or state bankruptcy, insolvency or similar law,
or (ii) appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of all or any substantial part of the
respective property of the Titling Trust or such Special Purpose Entity, or
(iii) ordering the winding up or liquidation of the affairs of the Titling Trust
or such Special Purpose Entity.

                        (c)     Except as otherwise provided in the Titling
Trust Agreement, as may be amended, restated and supplemented from time to time,
the Indenture Trustee (and each Noteholder by its acceptance of a Note) hereby
releases all Claims to the Titling Trust Assets allocated to the General
Interest and to each Portfolio Interest other than the Series 2003-A Portfolio
Interest whether then or thereafter created and, in the event that such release
is not given effect, to fully subordinate all Claims it may be deemed to have
against the Titling Trust Assets allocated to the General Interest and each
Portfolio Interest other than the Series 2003-A Portfolio Interest whether then
or thereafter created.

                Section 11.18 Inspection. The Issuer agrees that, on reasonable
prior notice, it shall 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 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.

                                     - 62 -

<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, all as of the day and year first above written.

NAVISTAR FINANCIAL 2003-A OWNER TRUST

By: Chase Manhattan Bank USA, National Association

By:  /s/ John J. Cashin
    -------------------------
Name:    John J. Cashin
Title:   Vice President

THE BANK OF NEW YORK,
as Indenture Trustee

By:   /s/ Erwin Soriano
    -------------------------
Name:    Erwin Soriano
Title:   Assistant Vice President

<PAGE>

STATE OF ILLINOIS     )
                      )   ss.
COUNTY OF COOK        )

                BEFORE ME, the undersigned authority, a Notary Public in and for
said county and state, on this day personally appeared John J. Cashin, 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 Navistar
Financial 2003-A Owner Trust and that he executed the same as the act of said
statutory trust for the purpose and consideration therein expressed, and in the
capacities therein stated.

                GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the 5th day of
June, 2003.

Notary Public in and for the State of Illinois.

My commission expires:

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

<PAGE>

STATE OF ILLINOIS     )
                      )   ss.
COUNTY OF COOK        )

                BEFORE ME, the undersigned authority, a Notary Public in and for
said county and state, on this day personally appeared Erwin Soriano, 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 The Bank
of New York, a New York banking corporation, and that he executed the same as
the act of said New York banking corporation for the purpose and consideration
therein stated.

                GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the 5th day of
June, 2003.

Notary Public in and for the State of Illinois.

My commission expires:

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

<PAGE>

                                                                       EXHIBIT A

                                  LOCATIONS OF
                        COMPOSITE SCHEDULE OF RECEIVABLES

The Composite Schedule of Receivables is on file at the offices of:

1.       The Indenture Trustee

2.       The Owner Trustee

3.       Navistar Financial Corporation

4.       Navistar Financial Retail Receivables Corporation

                                       A-1

<PAGE>

                                                                       EXHIBIT B

                       FORM OF CLASS A-1 ASSET BACKED NOTE

REGISTERED                                                      $____________/1/

No. R- _______                                                 CUSIP NO.________

                       SEE REVERSE FOR CERTAIN DEFINITIONS

                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 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.

                      NAVISTAR FINANCIAL 2003-A OWNER TRUST

                       CLASS A-1 1.25% ASSET BACKED NOTES

                NAVISTAR FINANCIAL 2003-A OWNER TRUST, a statutory trust
organized and existing under the laws of the State of Delaware (herein referred
to as the "Issuer"), for value received, hereby promises to pay to Cede & Co.,
or registered assigns, the principal sum of _______________ DOLLARS ($_________)
payable in accordance with the Indenture, prior to the occurrence of an Event of
Default and a declaration that the Notes are due and payable, on each
Distribution Date in an amount equal to the result obtained by multiplying (i) a
fraction, the numerator of which is the initial principal amount hereof and the
denominator of which is $85,000,000 by (ii) the aggregate amount, if any,
payable from the Note Distribution Account in respect of principal on such class
of the Notes pursuant to Sections 2.7, 3.1 and 8.2 of the Indenture; provided,
however, that the entire unpaid principal amount of this Note shall be due and
payable on the Distribution Date in June 2004 (the "Final Scheduled Distribution
Date"). The Issuer shall pay interest on this Note at the rate per annum shown
above on each Distribution Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note outstanding on the
preceding Distribution Date (after giving effect to all payments of principal
made on the preceding Distribution Date). Interest on this Note will

----------
/1/   Denominations of $1,000 and integral multiples thereof.

                                       B-1

<PAGE>

accrue for each Distribution Date from and including the most recent
Distribution Date on which interest has been paid to but excluding the then
current Distribution Date or, if no interest has yet been paid, from the Closing
Date. Interest on this Note will be calculated on the basis of the actual number
of days elapsed since the Closing Date or the preceding Distribution Date
divided by 360. 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 are payable in such
coin or currency of the United States of America which, 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.

                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.

                                       B-2

<PAGE>

                IN WITNESS WHEREOF, the Issuer has caused this instrument to be
signed, manually or in facsimile, by its Authorized Officer.

Date:    June 5, 2003           NAVISTAR FINANCIAL 2003-A OWNER TRUST

                                By:     CHASE MANHATTAN BANK USA, NATIONAL
                                        ASSOCIATION
                                        not in its individual capacity, but
                                        solely as Owner Trustee under the Trust
                                        Agreement

                                        By:
                                             -----------------------------------
                                        Name:  John J. Cashin
                                        Title: Vice President

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                        THE BANK OF NEW YORK
                                        not in its individual capacity, but
                                        solely as Indenture Trustee

                                        By:
                                             -----------------------------------
                                        Name:    Erwin Soriano
                                        Title:   Assistant Vice President

<PAGE>

                                 REVERSE OF NOTE

                This Note is one of a duly authorized issue of Notes of the
Issuer designated as its Class A-1 1.25% Asset Backed Notes (herein called the
"Class A-1 Notes"), all issued under an Indenture, dated as of June 5, 2003 (the
"Closing Date" and such Indenture, as supplemented or amended, is herein called
the "Indenture"), between the Issuer and The Bank of New York, a New York
banking corporation, as trustee (the "Indenture Trustee", which term includes
any successor trustee 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 Noteholders. The Notes are governed by and subject to all terms
of the Indenture (which terms are incorporated herein and made a part hereof),
to which Indenture the holder of this Note by virtue of acceptance hereof
assents and by which such holder is bound. All capitalized terms used and not
otherwise defined in this Note that are defined in the Indenture, as
supplemented or amended, shall have the meanings assigned to them in or pursuant
to the Indenture.

                The Indenture secures (a) first, the payment of principal and
interest on, and any other amounts owing in respect of the Class A Notes,
equally and ratably without prejudice, priority or distinction and (b) second,
the payment of principal of and interest on, and any other amounts owing in
respect of the Class B Notes, equally and ratably without prejudice, priority or
distinction, and to secure compliance with the provisions of the Indenture, as
provided therein.

                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
their individual capacities, (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 their individual
capacities, 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 their individual capacities, except as any such Person
may have expressly agreed (it being understood that the Indenture Trustee and
the Owner Trustee have no such obligations in their individual capacities) 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 instalment or call owing to
such entity.

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

<PAGE>

                Each Noteholder, by acceptance of a Note or, in the case of a
Note Owner, a beneficial interest in a Note, unless otherwise required by
appropriate taxing authorities, agrees to treat the Notes as indebtedness
secured by the Receivables for the purpose of federal income taxes, state and
local income and franchise taxes, and any other taxes imposed upon, measured by
or based upon gross or net income.

                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 shall
be overdue, and neither the Issuer, the Indenture Trustee nor 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 Noteholders under the Indenture
at any time by the Issuer with the consent of the Holders of Notes representing
a majority of the Outstanding Amount of all the Controlling Class. The Indenture
also contains provisions permitting the Holders of Notes representing specified
percentages of the Outstanding Amount of the Controlling Class, on behalf of the
Holders of all the Notes, to waive compliance by the Issuer with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Note (or
any one of more Predecessor Notes) 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 the Noteholders.

                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 Illinois, 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, except that the
obligations, rights and remedies of the Indenture Trustee hereunder shall be
determined in accordance with the internal laws of the State of New York.

                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.

<PAGE>

                Anything herein to the contrary notwithstanding, except as
expressly provided in the Basic Documents, neither the Seller, the Servicer, the
Indenture Trustee nor the Owner Trustee in their respective individual
capacities, any owner of a beneficial interest in the Issuer, nor any of their
respective partners, beneficiaries, agents, officers, directors, employees or
successors or assigns, shall be personally liable for, nor shall recourse be had
to any of them for, the payment of principal of or interest on, or performance
of, or omission to perform, any of the covenants, obligations or
indemnifications contained in this Note or the Indenture, it being expressly
understood that said covenants, obligations and indemnifications have been made
by the Issuer. The Holder of this Note by the acceptance hereof agrees that,
except as expressly provided in the Basic Documents, in the case of an Event of
Default under the Indenture, the Holder 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.

<PAGE>

                                   ASSIGNMENT

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

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

unto FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers

-----------------------------------------------------------------
                         (name and address of assignee)

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

Dated:__________________                        _____________________________/2/
                                                    Signature Guaranteed:

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

----------

/2/ NOTE: The signature to this assignment must correspond with the name of the
      registered owner as it appears on the face of the within Note in every
      particular, without alteration, enlargement or any change whatsoever.

<PAGE>

                                                                       EXHIBIT C

                   FORM OF CLASS A-2, CLASS A-3, CLASS A-4 AND
                            CLASS B ASSET BACKED NOTE

REGISTERED                                                      $____________/3/

No. R- _______                                                 CUSIP NO.________

                       SEE REVERSE FOR CERTAIN DEFINITIONS

                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 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.

                      NAVISTAR FINANCIAL 2003-A OWNER TRUST

                        CLASS ___ ___% ASSET BACKED NOTES

                NAVISTAR FINANCIAL 2003-A OWNER TRUST, a statutory trust
organized and existing under the laws of the State of Delaware (herein referred
to as the "Issuer"), for value received, hereby promises to pay to Cede & Co.,
or registered assigns, the principal sum of _______________ DOLLARS ($_________)
payable in accordance with the Indenture, prior to the occurrence of an Event of
Default and a declaration that the Notes are due and payable, on each
Distribution Date in an amount equal to the result obtained by multiplying (i) a
fraction, the numerator of which is the initial principal amount hereof and the
denominator of which is [aggregate principal amount for class] by (ii) the
aggregate amount, if any, payable from the Note Distribution Account in respect
of principal on such class of the Notes pursuant to Sections 2.7, 3.1 and 8.2 of
the Indenture; provided, however, that the entire unpaid principal amount of
this Note shall be due and payable on [the earlier of] _______________ (the
"Final Scheduled Distribution Date") [and the Redemption Date, if any, pursuant
to Section 10.1(a) of the Indenture]. The Issuer shall pay interest on this Note
at the rate per annum shown above on each

----------

/3/  Denominations of $1,000 and integral multiples thereof (except, if
     applicable, for one Note representing a residual portion of such class
     which may be issued in a different denomination).

                                      C-1

<PAGE>

Distribution 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
Distribution Date (after giving effect to all payments of principal made on the
preceding Distribution Date). Interest on this Note will accrue for each
Distribution Date from and including the most recent Distribution Date on which
interest has been paid to but excluding the then current Distribution Date or,
if no interest has yet been paid, from the Closing Date. Interest on this Note
will be computed on the basis of a 360-day year of twelve 30-day months (or, in
the case of the initial Distribution Date, 10/30ths of a month). 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 are payable in such
coin or currency of the United States of America which, 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.

                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.

                                       C-2

<PAGE>

                IN WITNESS WHEREOF, the Issuer has caused this instrument to be
signed, manually or in facsimile, by its Authorized Officer.

Date:                           NAVISTAR FINANCIAL 2003-A OWNER TRUST

                                By:     CHASE MANHATTAN BANK USA, NATIONAL
                                        ASSOCIATION not in its individual
                                        capacity, but solely as Owner Trustee
                                        under the Trust Agreement

                                        By:
                                            ---------------------------------
                                        Name:    John J. Cashin
                                        Title:   Vice President

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                        THE BANK OF NEW YORK, not in its
                                        individual capacity, but solely as
                                        Indenture Trustee

                                        By:
                                            ---------------------------------
                                        Name:    Erwin Soriano
                                        Title:   Assistant Vice President

<PAGE>

                                 REVERSE OF NOTE

                This Note is one of a duly authorized issue of Notes of the
Issuer designated as its Class____ ____%_ Asset Backed Notes (herein called the
"Class Notes"), all issued under an Indenture, dated as of June 5, 2003 (the
"Closing Date" and such Indenture, as supplemented or amended, is herein called
the "Indenture"), between the Issuer and The Bank of New York, a New York
banking corporation, as trustee (the "Indenture Trustee", which term includes
any successor trustee 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 Noteholders. The Notes are governed by and subject to all terms
of the Indenture (which terms are incorporated herein and made a part hereof),
to which Indenture the holder of this Note by virtue of acceptance hereof
assents and by which such holder is bound. All capitalized terms used and not
otherwise defined in this Note that are defined in the Indenture, as
supplemented or amended, shall have the meanings assigned to them in or pursuant
to the Indenture.

                The Indenture secures (a) first, the payment of principal and
interest on, and any other amounts owing in respect of the Class A Notes,
equally and ratably without prejudice, priority or distinction and (b) second,
the payment of principal of and interest on, and any other amounts owing in
respect of the Class B Notes, equally and ratably without prejudice, priority or
distinction, and to secure compliance with the provisions of the Indenture, as
provided therein.

                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
their individual capacities, (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 their individual
capacities, 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 their individual capacities, except as any such Person
may have expressly agreed (it being understood that the Indenture Trustee and
the Owner Trustee have no such obligations in their individual capacities) 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 instalment or call owing to
such entity.

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

<PAGE>

                Each Noteholder, by acceptance of a Note or, in the case of a
Note Owner, a beneficial interest in a Note, unless otherwise required by
appropriate taxing authorities, agrees to treat the Notes as indebtedness
secured by the Receivables for the purpose of federal income taxes, state and
local income and franchise taxes, and any other taxes imposed upon, measured by
or based upon gross or net income.

                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 shall
be overdue, and neither the Issuer, the Indenture Trustee nor 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 Noteholders under the Indenture
at any time by the Issuer with the consent of the Holders of Notes representing
a majority of the Outstanding Amount of all the Controlling Class. The Indenture
also contains provisions permitting the Holders of Notes representing specified
percentages of the Outstanding Amount of the Controlling Class, on behalf of the
Holders of all the Notes, to waive compliance by the Issuer with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Note (or
any one of more Predecessor Notes) 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 the Noteholders.

                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 Illinois, 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, except that the
obligations, rights and remedies of the Indenture Trustee hereunder shall be
determined in accordance with the internal laws of the State of New York.

                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.

<PAGE>

                Anything herein to the contrary notwithstanding, except as
expressly provided in the Basic Documents, neither the Seller, the Servicer, the
Indenture Trustee nor the Owner Trustee in their respective individual
capacities, any owner of a beneficial interest in the Issuer, nor any of their
respective partners, beneficiaries, agents, officers, directors, employees or
successors or assigns, shall be personally liable for, nor shall recourse be had
to any of them for, the payment of principal of or interest on, or performance
of, or omission to perform, any of the covenants, obligations or
indemnifications contained in this Note or the Indenture, it being expressly
understood that said covenants, obligations and indemnifications have been made
by the Issuer. The Holder of this Note by the acceptance hereof agrees that,
except as expressly provided in the Basic Documents, in the case of an Event of
Default under the Indenture, the Holder 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.

<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 ____________________________________, as attorney, to transfer said
Note on the books kept for registration thereof, with full power of substitution
in the premises.

Dated:__________________                      _______________________________/4/
                                                   Signature Guaranteed:

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

----------

/4/ NOTE: The signature to this assignment must correspond with the name of the
     registered owner as it appears on the face of the within Note in every
     particular, without alteration, enlargement or any change whatsoever.

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