Document:

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                  TRANSITION AND INTEGRATION SERVICES AGREEMENT

                                 by and between

                    Security Life of Denver Insurance Company

                                       and

                             Scottish Re (US), Inc.

                          Dated as of December 31, 2004

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                                TABLE OF CONTENTS

Section 1.   Definitions.......................................................1
Section 2.   Services to be Provided...........................................3
Section 3.   Standard of Services, Review Procedures and Penalties.............9
Section 4.   Subcontracting...................................................11
Section 5.   Consideration for Services; Fee Dispute Resolution...............12
Section 6.   Term and Termination.............................................14
Section 7.   Transition Project Management....................................18
Section 8.   Relationships Among the Parties..................................18
Section 9.   Compliance With and Changes to Laws and Policies.................18
Section 10.  Inability to Perform Services; Technology Changes................19
Section 11.  Covenants and Other Agreements...................................20
Section 12.  Dispute Resolution...............................................21
Section 13.  Indemnification..................................................22
Section 14.  Ownership, Data and Security.....................................22
Section 15.  Force Majeure....................................................23
Section 16.  Survival.........................................................25
Section 17.  Notices..........................................................25
Section 18.  Binding Effect; Assignment.......................................26
Section 19.  Execution in Counterparts........................................26
Section 20.  Waivers and Amendments...........................................26
Section 21.  Exhibits; Schedules..............................................26
Section 22.  Arbitration......................................................26
Section 23.  Governing Law and Jurisdiction...................................28
Section 24.  Sole Agreement...................................................28
Section 25.  Waiver of Jury Trial; Multiplied and Punitive Damages............28
Section 26.  Confidentiality..................................................28
Section 27.  Captions.........................................................30
Section 28.  Severability.....................................................30
Section 29.  No Third Party Beneficiaries.....................................30
Section 30.  Equitable Rights.................................................30

Schedules

Schedule 2(a)(i)      Scheduled Services
Schedule 2(e)         Transition Employees
Schedule 2(g)         Retained Employees, Retained Contractors & Designated
                      Services
Schedule 4(a)         Current Subcontracted Services and Current Subcontractors
Schedule 5(a)(i)      Cost of Transition Employees
Schedule 5(a)(iii)    Hourly Rates for IT Services
Schedule 5(a)(iv)     Loaded Costs for non-IT Transition Services
Schedule 5(a)(v)      Cost of Retained Employees and Retained Contractors
Schedule 5(a)(vi)     Estimated Direct Costs
Schedule 7(a)         Transition Project Managers
Schedule 9(c)(i)      Privacy Policies

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          This TRANSITION SERVICES AND INTEGRATION AGREEMENT (this "Agreement"),
dated as of December 31, 2004 (the "Effective Date"), is entered into by and
among Security Life of Denver Insurance Company, a Colorado corporation
(collectively with any of its Affiliates that may provide services hereunder,
"Provider"), and Scottish Re (US), Inc., a Delaware corporation ("Recipient")
for itself and for the benefit of Purchaser Affiliates (collectively, the
"Recipient Transition Group").

                              W I T N E S S E T H:

          WHEREAS, Provider and Security Life of Denver International Limited,
on the one hand, and Scottish Re Group Limited and Recipient, on the other hand,
have entered into that certain Asset Purchase Agreement, dated October 17, 2004
(hereinafter, the "Asset Purchase Agreement"); and

          WHEREAS, the execution and delivery of this Agreement is a condition
precedent to the parties' obligation to consummate the transactions contemplated
by the Asset Purchase Agreement.

          NOW, THEREFORE, in consideration of the covenants, conditions and
agreements set forth in this Agreement, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereby agree as follows:

          Section 1. Definitions. All capitalized terms used but not otherwise
defined herein shall have the meanings ascribed to them in the Asset Purchase
Agreement. With respect to all defined terms, whenever the singular term is
used, the same shall include the plural, and whenever the plural is used, the
same shall include the singular, where appropriate.

          "Added Scheduled Services" shall have the meaning set forth in Section
2(a)(i).

          "Asset Purchase Agreement" shall have the meaning set forth in the
Recitals.

          "Confidential Information" shall have the meaning set forth in Section
26.

          "Current Subcontracted Services" shall have the meaning set forth in
Section 4(a).

          "Current Subcontractor" shall have the meaning set forth in Section
4(a).

          "Designated Services" shall have the meaning set forth in Section
2(g).

          "Force Majeure Events" shall have the meaning set forth in Section
15(b).

          "IT Services" means all Transition Services relating to information
technology.

          "Integration Services" means such services (i) as are required to
transition the Business to Recipient, which may include, without limitation,
knowledge transfer, process migration, data conversion, parallel testing and
special project support and (ii) as mutually agreed-upon by the parties pursuant
to Section 2(a)(iii) hereof.

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          "New Subcontractor" shall have the meaning set forth in Section 4(b).

          "Other Party" shall have the meaning set forth in Section 6(c)(i).

          "Privacy Policy" means the Provider Privacy Policy or the Recipient
Privacy Policy, as applicable.

          "Provider Indemnified Parties" shall have the meaning set forth in
Section 13(b).

          "Provider Privacy Policy" means the privacy policies of Provider,
copies of which have been provided to Recipient.

          "Recipient Indemnified Parties" shall have the meaning set forth in
Section 13(a).

          "Recipient Privacy Policy" means the privacy policies of Recipient,
copies of which have been provided to Provider.

          "Retained Contractor Retention Period" shall have the meaning set
forth in Section 2(g).

          "Retained Contractors" shall have the meaning set forth in Section
2(g).

          "Retained Employee Retention Period" shall have the meaning set forth
in Section 2(g).

          "Retained Employees" shall have the meaning set forth in Section 2(g).

          "Retention Termination Date" shall have the meaning set forth in
Section 2(g).

          "Scheduled Services" means each service listed on Schedule 2(a)(i) of
this Agreement (as such schedule may be revised from time to time upon mutual
agreement of the parties in accordance with Section 2.1(a)(i)).

          "Service Shortfall" shall have the meaning set forth in Section 3(d).

          "Shortfall Notice" shall have the meaning set forth in Section 3(d).

          "Special Project" means any service that Recipient requests Provider
to provide and Provider has agreed in writing to provide pursuant to Section
2(b) hereof, which service does not fall within (i) the scope of the Transition
Services identified in Section 2(a) or (ii) the scope of the Designated Services
identified pursuant to Section 2(g).

          "Subcontractor" means any Current Subcontractor (as defined in and
permitted by Section 4(a) hereof) and/or any New Subcontractor (as defined in
and permitted by Section 4(b) hereof).

          "Taxes" shall have the meaning set forth in Section 5(e).

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          "Technology Change" means a material change to the technology
infrastructure or applications used to provide any Transition Service, which
change has a material adverse impact on any Transition Service or on another
party's technology infrastructure or applications.

          "Termination Assistance" shall have the meaning set forth in Section
6(e).

          "Third Party Vendors" means those third party vendors with which
Provider has in effect as of the Effective Date contractual arrangements to
provide general services that may relate to the Transition Services. For the
avoidance of doubt, no Third Party Vendors shall be deemed to be Subcontractors
hereunder.

          "Third Party Vendor Services" means the reasonable cooperation by
Provider described in Section 2(a)(ii).

          "Transition Assistance" shall have the meaning set forth in Section
6(e).

          "Transition Employees" means the employees or independent contractors
of Provider or an Affiliate of Provider identified on Schedule 2(e) (any
independent contractors are identified as such on Schedule 2(e)) who will serve
Provider or an Affiliate of Provider full-time in the provision of the
Transition Services (each such employee or independent contract is individually
referred to herein as a "Transition Employee"). Transition Employees shall not
include any Retained Employees or Retained Contractors.

          "Transition Plan" shall have the meaning set forth in Section 6(e).

          "Transition Project Managers" means the two individuals, one
designated by Provider and one designated by Recipient, who are primarily
responsible for administering this Agreement as described in Section 7.

          "Transition Services" means the Scheduled Services, the Added
Scheduled Services, the Integration Services, the Third Party Vendor Services
and Transition Assistance, and, for the avoidance of doubt, does not include any
Designated Services.

          "TSA Monthly Invoice" means an invoice setting forth the fees payable
by Recipient for all services provided hereunder, which invoice shall be
delivered pursuant to Section 5(c) of this Agreement.

          "TSA Records" shall have the meaning set forth in Section 5(f).

          "Unauthorized Access" shall have the meaning set forth in Section 26.

          Section 2. Services to be Provided.

          (a) Transition Services.

               (i) Scheduled Services. Subject to Recipient's obligations
     pursuant to Section 2(h), and for the period of time described in Section 6
     hereof, Provider shall provide or cause to be provided in accordance with
     the terms hereof, to Recipient

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     Transition Group all Scheduled Services. In addition, for so long as the
     Transition Services are being provided hereunder, Provider shall provide
     Recipient with reasonable access to all available service operating manuals
     and other relevant and existing materials reasonably required to use and
     receive such Transition Services and copies of any supplements or updates
     to such manuals and materials. During the period of time beginning on the
     Effective Date and ending sixty (60) days thereafter, Schedule 2(a)(i) may
     be amended from time to time upon the written request of Recipient to add
     as "Scheduled Services" any services that were being provided to the
     Business immediately prior to the Effective Date which services (A) were
     not previously identified in a writing (including electronic mail messages)
     between the parties as services being provided to the Business as of the
     Closing Date and (B) can, using commercially reasonable efforts, be
     provided to Recipient by Provider or its Affiliates (such requested
     services that meet the criteria set forth in clauses (A) and (B) above are
     collectively referred to herein as the "Added Scheduled Services"). For the
     avoidance of doubt, Added Scheduled Services shall be considered Scheduled
     Services hereunder. Provider shall have ten (10) Business Days from the
     date of receipt of a valid request to provide an Added Scheduled Service to
     commence the provision of such service in accordance with the terms and
     conditions of this Agreement. At such time, Schedule 2(a)(i) shall be
     amended to reflect the Added Scheduled Service, and the amended Schedule
     2(a)(i) shall be initialed by the Transition Project Manager of each party
     and attached to this Agreement.

               (ii) Third Party Vendor Services. Upon Recipient's reasonable
     written request, Provider shall cooperate with Recipient in Recipient's
     negotiation for a direct agreement with any Third Party Vendor.

               (iii) Integration Services. As soon as practicable following the
     Effective Date, the parties shall use commercially reasonable efforts to
     agree upon and document the terms applicable to the delivery of the
     Integration Services, including the services descriptions, pricing,
     specific milestones and deadlines. If Provider and Recipient fail to agree
     upon the terms applicable to the delivery of the Integration Services
     within ninety (90) days after the Effective Date, the parties will resolve
     their dispute concerning the terms applicable to the delivery of such
     Integration Services in accordance with Section 12(a). Any such dispute
     shall be resolved taking into account (A) the nature of this Agreement, (B)
     Recipient's business needs and obligations under this Agreement and the
     Administrative Services Agreement and (C) Provider's capacity limitations
     in light of its need to support its ongoing business operations and to
     provide other Transition Services hereunder.

               (iv) Failure to Provide Services or Meet Applicable Standard
     Levels. To the extent that Provider fails to provide or fails to timely
     provide any Transition Service as required under this Agreement or fails to
     meet the applicable standard of service for any Transition Service as set
     forth herein, unless such failure was caused primarily by the act or
     omission of Recipient Transition Group, and such failure is the primary
     cause of Recipient's inability to provide any services in accordance with
     its obligations under the Administrative Services Agreement, Recipient
     shall have no liability under the Administrative Services Agreement for its
     failure to meet its obligations to provide such affected Administrative
     Services until such time as the earlier

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     of the following: (A) Provider cures such failure hereunder to the extent
     required to enable Recipient to resume providing such services in
     accordance with its obligations under the Administrative Services
     Agreement, or (B) Recipient, using commercially reasonable efforts, finds
     an alternative source for such Transition Service or a work-around
     sufficient to enable Recipient to resume providing such services in
     accordance with its obligations under the Administrative Services
     Agreement, the incremental costs associated with which shall be reimbursed
     by Provider.

          (b) Special Projects. If Recipient requests in writing that Provider
provide a Special Project, which request shall include a description of the
service(s) required to be performed in conjunction with such Special Project,
Provider shall (i) within five (5) Business Days after the date of receipt of
the request provide Recipient with written notice of receipt of the request and
(ii) within ten (10) Business Days after the date of receipt of such request,
provide Recipient with either (A) a written proposal for such Special Project,
giving reasonable priority to other demands on Provider's resources under this
Agreement and otherwise, or (B) written notice of its decision not to accept
such Special Project, in which case Provider shall have no further obligation
under this Agreement with respect to such Special Project, it being understood
that Provider shall not be required to accept any requested Special Project and
provide a written proposal therefor unless (x) with respect to Special Projects
that constitute IT Services, Provider is the only reasonably-available source of
information or expertise needed to undertake such Special Project, and such
Special Project can be completed by Provider using commercially reasonable
efforts and without any adverse impact on the Transition Services being provided
or on Provider's or its Affiliates' other businesses, taking into account
resource limitations and the other demands on the time of the individuals needed
to undertake such Special Project in conjunction with the Transition Services
and Provider's and its Affiliates' other businesses, and (y) with respect to any
other Special Projects, Provider determines in good faith that it can perform
such Special Project using commercially reasonable efforts using Transition
Employees employed at the time Provider receives the request to perform the
Special Project and without any adverse impact on the Transition Services being
provided or on Provider's or its Affiliates' other businesses. For purposes of
determining whether Provider is the only reasonably-available source of
information or expertise under clause (x) of the foregoing sentence, it is
specifically acknowledged and agreed that Provider will not be deemed to have
access to or use of the Retained Employees or Retained Contractors. Each written
proposal for a Special Project submitted by Provider pursuant to clause (ii)(A)
above shall refer to the description provided by Recipient, include the
estimated time and price of performing the Special Project (including any
third-party consents necessary to perform the Special Project), and include any
potential impact on then-existing Transition Services. If the parties agree on
such proposal, Provider shall perform such Special Project in accordance with
the terms of this Agreement. If the parties do not agree on such proposal within
fifteen (15) Business Days after the date it is delivered to Recipient, Provider
shall have no further obligation under this Agreement with respect to such
Special Project. All work product created or delivered by Provider (alone or
with others) pursuant to any Special Project, together with associated
intellectual property rights, shall, unless otherwise indicated in an applicable
Special Project proposal, be owned by Recipient, except that Recipient shall
acquire no right thereby in confidential information or trademarks, service
marks, or logos of Provider or its Affiliates. To the extent that Provider fails
to provide any Special Project required to be provided by Provider under this
Section 2(b), unless such failure was caused primarily by the act or omission of

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Recipient Transition Group, and such failure is the primary cause of Recipient's
inability to provide any services in accordance with its obligations under the
Administrative Services Agreement, Recipient shall have no liability under the
Administrative Services Agreement for its failure to meet its obligations to
provide such affected Administrative Services until such time as the earlier of
the following: (A) Provider cures such failure hereunder to the extent required
to enable Recipient to resume providing such services in accordance with its
obligations under the Administrative Services Agreement, or (B) Recipient, using
commercially reasonable efforts, finds an alternative source for such Special
Project or a work-around sufficient to enable Recipient to resume providing such
services in accordance with its obligations under the Administrative Services
Agreement, the incremental costs associated with which shall be reimbursed by
Provider.

          (c) No Obligation to Provide Other Services. Except for the Transition
Services, the Designated Services (as defined in Section 2(g) below), and any
Special Projects agreed upon in accordance with Section 2(b) above, Provider
shall have no obligation to provide any other services to Recipient pursuant to
this Agreement.

          (d) Non-Exclusivity. Nothing herein shall prevent Recipient Transition
Group during the term of this Agreement from obtaining any of the Transition
Services or Designated Services from any other Person or from providing any
Transition Service or Designated Service to itself using its own facilities and
employees; provided, however, that the foregoing shall not excuse Recipient from
complying with the provisions regarding notice of termination set forth in
Section 6(b) of this Agreement or from its payment obligations with respect to
Transition Services previously rendered.

          (e) Transition Employees. The parties acknowledge and agree that the
Transition Employees are employees or independent contractors of the particular
Seller or Affiliate of Sellers for whom such employee works, and not employees
of Recipient. In all cases, Provider reserves the right to give direction and
make final decisions with regard to any and all work assignments and employment
matters. In the event of any question or conflict, the instruction of Provider
shall be binding. During the term of this Agreement, Provider will use
commercially reasonable efforts to (i) retain the Transition Employees to the
extent such employees continue to be required to perform Transition Services and
(ii) manage the number of Transition Employees so as to be commensurate with the
level of services being provided at any time. On or about the first Business Day
of each calendar month, the Transition Project Managers of each party shall meet
(in person or telephonically) to discuss staffing levels, and shall consider in
good faith each other's suggestions with respect thereto. Provider will give
Recipient thirty (30) days notice prior to terminating any Transition Employee,
and Recipient will have the opportunity to request that such Transition Employee
be retained for a longer period of time (subject to the payment obligations
described in Section 6(b) below), in which case Provider will use commercially
reasonable efforts to retain such Transition Employee or replace such Transition
Employee with another employee of appropriate skill and knowledge; provided,
that in no event will Provider be obligated to retain any Transition Employee
beyond the date that is eighteen (18) months after the Effective Date, unless
the transition period is extended beyond such date by mutual agreement of the
parties in accordance with Section 6(a) hereof, in which case Provider will use
commercially reasonable efforts to retain such Transition Employee or replace
such Transition Employee with another employee of appropriate skill and

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knowledge. The inability to retain any particular Transition Employee(s) shall
not excuse Provider from its obligation to provide the Transition Services
hereunder. Recipient may, in its reasonable discretion, provide notice to
Provider of its determination that the number of Transition Employees performing
a particular Transition Service is in excess of that reasonably required to
perform such Transition Service then being performed or that such Transition
Service is no longer required and that, therefore, one or more Transition
Employees should be terminated. Within five (5) Business Days of such notice,
Provider shall advise Recipient in writing (to include electronic mail
correspondence) of the impact, if any, that the termination of such Transition
Employee(s) would have on the Transition Services and Special Projects, if any,
then being provided and any impact on the standard of services therefor.
Recipient will thereafter notify Provider of its election to either (A) have
Provider terminate one or more Transition Employees or (B) have Provider
continue to retain one or more Transition Employees. If Recipient notifies
Provider that it elects to have one or more Transition Employees terminated, (x)
Recipient shall have no obligation to pay for such number of Transition
Employees from and after the date that is thirty (30) days after the date of
Recipient's notification to Provider and (y) from and after the date that is
thirty (30) after the date of Recipient's notification to Provider, Provider
shall have no liability under this Agreement for any adverse impact on the
Transition Services and Special Projects (including but not limited to failure
to provide or timely provide or perform the same and failure to meet required
service levels), which adverse impact was described to Recipient in writing
(including by electronic mail correspondence) prior to such termination. In no
event shall any such adverse impact on the Transition Services that was
described to Recipient in writing (including by electronic mail correspondence),
including but not limited to failure to provide or timely provide or perform the
same and failure to meet required service levels, resulting directly or
indirectly from the termination of one or more Transition Employees at
Recipient's request or direction excuse Recipient from the performance of any of
its duties or obligations under the Administrative Services Agreement.

          (f) No Requirements. Nothing in this Agreement requires Recipient
Transition Group (or any of its successors and assigns) to request any
particular quantity or level of any Transition Service provided under this
Agreement.

          (g) Retained Employees and Retained Contractors.

               (i) Retained Employees. In lieu of utilizing the Retained
     Employees (as defined below) to provide certain Scheduled Services,
     Provider agrees to second the employees listed on Schedule 2(g) (the
     "Retained Employees" and, each, a "Retained Employee") to Recipient to
     perform such services as may be required by Recipient relating to the
     projects and objectives described on Schedule 2(g) (collectively, the
     "Designated Services"). During the Retained Employee Retention Period (as
     defined below), Provider agrees to retain the Retained Employees as
     Provider employees, and Provider will use reasonable efforts consistent
     with past practice to preserve positive employer/employee relationships
     with the Retained Employees but will not be required to pay any retention
     bonuses other than those reflected on Schedule 5(a)(v) or otherwise take
     any actions beyond what would be taken to preserve employer/employee
     relationships with employees who are not Retained Employees. Provider is
     not required to retain any Retained Employee who (A) voluntarily resigns
     from employment with Provider, (B) is terminated by Provider for gross or
     willful misconduct that causes

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     demonstrable and serious injury to Provider or has an adverse impact on
     Provider's standing and reputation, (C) is terminated by Provider for
     materially and continually failing to perform his or her duties and
     responsibilities, or (D) becomes unable to perform the essential functions
     of his or her position due to a disability that cannot be reasonably
     accommodated. For purposes of this Agreement, the "Retained Employee
     Retention Period" for each Retained Employee will begin on January 1, 2005
     and will continue until June 30, 2006 or the Retention Termination Date (as
     defined below) for such Retained Employee, whichever occurs earlier. During
     the Retained Employee Retention Period, Provider will assign the Retained
     Employees to the provision of the Designated Services. Recipient may, in
     its reasonable discretion, provide notice to Provider of its determination
     that the number of Retained Employees performing the Designated Services is
     in excess of that reasonably required to perform such Designated Services
     then being performed or that certain Designated Services are no longer
     required and that, therefore, one or more specific Retained Employees
     should be removed from the roster of Retained Employees. From and after the
     date that is thirty (30) days after the date of Recipient's notification to
     Provider that one or more Retained Employees should be removed from the
     roster of Retained Employees (the "Retention Termination Date"), Recipient
     shall have no obligation to pay for the Retained Employees so identified
     and Provider shall have no liability under this Agreement to second or
     otherwise make such Retained Employees available to Recipient pursuant to
     this Section 2(g). Notwithstanding the foregoing, it is the intent of the
     Parties that throughout the Retained Employee Retention Period, (x) each
     Retained Employee engaged hereunder shall continue to be employed solely by
     Provider, continue to report to Provider for purposes of payroll, employee
     benefits and other administrative matters, and continue to be subject to
     Provider's employment policies and procedures; (y) Recipient shall have no
     authority to hire, fire, discipline or otherwise affect the employment
     relationship of the Retained Employees with Provider, and will not in any
     case be considered to be an employer or joint employer of such Retained
     Employees or to assume any responsibilities or obligations of such an
     employer; and (z) Provider will continue to be fully responsible with
     regard to worker's compensation, unemployment compensation, payroll tax,
     severance, and related matters with respect to all Retained Employees. The
     foregoing shall in no way limit Recipient's obligations under Section 5 and
     Section 13(b) with respect to the Retained Employees. The provisions of
     this Section 2(g) shall in no way affect Provider's responsibility to
     provide or cause to be provided the Transition Services.

               (ii) Retained Contractors. During the Retained Contractor
     Retention Period (as defined below), Provider agrees to make those
     independent contractors listed on Schedule 2(g) (the "Retained Contractors"
     and, each, a "Retained Contractor") available to Recipient full-time to
     perform, at Recipient's direction, the Designated Services. During the
     Retained Contractor Retention Period, Provider will use commercially
     reasonable efforts to retain the Retained Contractors to the extent such
     contractors continue to be required to perform Designated Services. Each of
     Recipient and Provider will cooperate and use commercially reasonable
     efforts either to (A) assign (and obtain, as necessary, the consent of each
     Retained Contractor to the assignment of) each contract between Provider or
     its Affiliate and any of the Retained Contractors to Recipient or (B)
     negotiate a direct agreement between Recipient and each of the Retained

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     Contractors on substantially the same or better terms as those currently in
     effect under the applicable contract between Provider or its Affiliate and
     such Retained Contractor, as promptly as possible after the Closing Date.
     The "Retained Contractor Retention Period" for each Retained Contractors
     will begin on January 1, 2005 and will continue until the earliest to occur
     of (x) June 30, 2006, (y) the date on which the contract between Provider
     or its Affiliate and such Retained Contractor is assigned to Recipient or
     Recipient enters into a direct agreement with such Retained Contractor, or
     (z) the date that is thirty (30) days following the date Provider receives
     written notification from Recipient that such Retained Contractor should be
     removed from the roster of Retained Contractors. All benefits that inure to
     Provider or its Affiliate under Provider's or such Affiliate's contractual
     arrangements with any Retained Contractor shall be passed through to
     Recipient to the extent such benefits relate to the Designated Services
     provided by such Retained Contractor.

          (h) Reasonable Assistance. As necessary in connection with the
Transition Services and any agreed-upon Special Projects, and provided that
Provider complies with Recipient's security procedures and privacy policies as
then in effect, Recipient shall provide Provider with any reasonable assistance,
including providing to Provider such information, data, access to premises,
management decisions, access to and reasonable cooperation of any Transferred
Employees, Retained Employees and Retained Contractors with particular skills or
expertise, approvals and acceptances, as may be reasonably required to permit
Provider to provide the Transition Services, Designated Services and any
agreed-upon Special Projects hereunder.

          (i) Recipient Employees. It is expressly understood that, except as
otherwise provided herein, any services rendered by Recipient employees after
the Effective Date shall not be considered Transition Services, and Provider
shall not be responsible for providing the same.

          (j) Access. As necessary in connection with the Transition Services,
the Designated Services, and any agreed-upon Special Projects, and provided that
Recipient complies with Provider's security procedures and privacy policies as
then in effect, Provider shall give Recipient reasonable access to the servers
and other information technology systems used to provide the Transition
Services, the Designated Services, and any agreed-upon Special Projects; all
requests for such access shall be made in advance by Recipient's Transition
Project Manager to Provider's Transition Project Manager. Nothing in this
Agreement shall require Provider to provide any third party with access to its
systems, its computing environment or its confidential information other than on
commercially reasonable terms regarding privacy, security, confidentiality and
timing.

          Section 3. Standard of Services, Review Procedures and Penalties.

          (a) Standard of Services for Transition Services. Provider agrees that
it shall provide the Transition Services or, if Provider is utilizing a
Subcontractor (as permitted under Section 4 hereof), Provider shall cause such
Subcontractor to provide such Transition Services, at least (i) with respect to
IT Services, at the same service levels at which such services were performed
within or for the Business immediately prior to the Effective Date or, with
respect to any other Transition Services, using at least the same standard of
care that Provider or

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a Current Subcontractor used immediately prior to the Effective Date in
performing such services within or for the Business, (ii) in substantial
compliance with Applicable Law, and (iii) in compliance with industry standards.
Provider agrees (w) to provide Recipient with documentation describing with
reasonable specificity, and pass through to Recipient Transition Group, any
Current Subcontractor obligations to meet service levels for Current
Subcontracted Services, and (x) to enforce all contractual provisions with such
Current Subcontractors with respect to their obligations to meet such service
levels or otherwise ensure that all applicable service level standards are met.
Provider agrees (y) to provide Recipient with documentation describing with
reasonable specificity, and to pass through to Recipient Transition Group, any
New Subcontractor obligations to meet service levels with respect to Transition
Services to be provided by New Subcontractors (as permitted under Section 4
hereof), if any, and (z) to enforce all contractual provisions with such New
Subcontractors with respect to their obligations to meet such service levels or
otherwise ensure that all applicable service level standards are met. As of the
Effective Date, IBM is the only Current Subcontractor that is obligated to meet
service levels for Current Subcontracted Services, and a true and correct copy
of such service level obligations applicable to the Current Subcontracted
Services provided by IBM has been provided to Recipient.

          (b) Change in IT Services. Provider reserves the right to make any
changes to (i) the manner in which the IT Services are provided and (ii) the
location from which the IT Services are provided, including any changes to
personnel involved in the provision of such IT Services, provided that Provider
shall not, without Recipient's prior written consent, such consent not to be
unreasonably withheld, thereby cause any adverse change in service levels
required hereunder or functionality being supported, or result in any additional
costs to Recipient.

          (c) Monthly Meeting. For the first twelve (12) weeks after the
Effective Date, the Transition Project Managers of each party shall meet at
least once weekly, or more frequently if mutually agreed upon, (in person or
telephonically) to discuss the status of the transition, manage open issues,
discuss any planned termination dates for particular Transition Services, and
review service levels achieved and missed in the previous month, to the extent
such information is available, as well as non-achievement of targets and
corrective actions taken or planned. Thereafter, such meetings shall be held (in
person or telephonically) on at least a monthly basis, or more frequently if
mutually agreed upon. Once per month, during the first twelve (12) weeks after
the Effective Date and thereafter, in advance of each such monthly meeting,
Provider's Transition Project Manager shall provide to Recipient's Project
Manager a written report summarizing all available current information on
compliance with and deviation from the service levels and technology management
standards as are applicable in accordance with the provisions of Section 3(a).

          (d) Failure to Meet Standards for Services. If Recipient provides
Provider with written notice ("Shortfall Notice") of any failure to meet the
standards for Transition Services required by Section 3(a) hereof ("Service
Shortfall"), as determined by Recipient in good faith, Provider shall rectify
such failure as soon as possible using commercially reasonable efforts. Provider
shall be responsible for all internal and out-of-pocket costs incurred by
Recipient in curing the Service Shortfall. In addition, if such Service
Shortfall is not cured (i) for particular Transition Services provided by IBM,
within the time frames required by the service

                                      -10-
<PAGE>

level obligations of IBM described in the last sentence of Section 3(a) above or
(ii) for any other Transition Service, within the cure window for such
Transition Service as set forth on Schedule 2(a)(i), if any, or, if no cure
window is set forth on Schedule 2(a)(i), within a commercially reasonable time,
then Provider shall reimburse Recipient for all incremental costs incurred by
Recipient in procuring an alternative provider of such services (in excess of
the costs expected to be incurred by Recipient hereunder) and confer upon
Recipient the benefit of any applicable service level credits on amounts paid to
Provider hereunder, which service level credits shall be determined in
accordance with Provider's contract with IBM, as it relates to the Transition
Services provided by IBM. Neither Provider nor its Affiliates will take any
action to cause IBM to treat the Business, Provider or Security Life of Denver
International Limited any less favorably under that certain Information
Technology Services Agreement between ING North America Insurance Corporation
and IBM dated December 16, 2003 than such entities were treated by IBM
immediately prior to the Effective Date.

          Section 4. Subcontracting.

          (a) Current Subcontractors. Provider reserves the right to continue to
subcontract the performance of those Transition Services that are being
subcontracted immediately prior to the Effective Date ("Current Subcontracted
Services") to such subcontractor that is not an Affiliate of Provider and that
is providing those Current Subcontracted Services to the Business immediately
prior to the Effective Date ("Current Subcontractor"), which Current
Subcontracted Services shall be listed on Schedule 4(a) along with the
applicable Current Subcontractor; provided, that Provider (i) shall remain
primarily responsible under this Agreement for any and all obligations with
respect to such Current Subcontracted Services as are undertaken by such Current
Subcontractor and (ii) shall be responsible for compliance by any Current
Subcontractor with the terms and conditions of this Agreement and for any acts
or omissions of such Current Subcontractor, other than such acts or omissions at
the request or direction of Recipient. Notwithstanding the foregoing, and except
as set forth in Section 4(d) hereof, under no circumstances shall Provider have
any liability or responsibility for any act or omission of any Current
Subcontractor that can be characterized as a failure to adequately or
appropriately perform any Current Subcontracted Services if the applicable
Current Subcontracted Services otherwise meet the service level standards
described in Section 3(a) hereof.

          (b) New Subcontractors. Except in connection with a global,
enterprise-wide or multi-business unit contracting arrangement entered into by
Provider or its Affiliates, or as otherwise provided in Section 4(a), Provider
may not subcontract the performance of any obligations of Provider hereunder to
any subcontractor that is not an Affiliate of Provider without Recipient's prior
written approval, such approval not to be unreasonably withheld or delayed.
Provider shall notify Recipient if it does not or cannot secure the right to
disclose to Recipient those portions of a contract between Provider (or an
Affiliate of Provider) and such subcontractor relating to service levels and the
remedies for failing to achieve such service levels for applicable Transition
Service(s), and Provider's failure to obtain such approval shall be deemed a
reasonable basis for Recipient to withhold its approval hereunder. Each such
subcontractor approved by Recipient in accordance herewith shall be referred to
as a "New Subcontractor." Provider (i) shall remain primarily responsible under
this Agreement for any and all obligations undertaken by any such New
Subcontractor and (ii) shall be responsible for compliance by any

                                      -11-
<PAGE>

New Subcontractor with the terms and conditions of this Agreement and for any
acts or omissions of such New Subcontractor, other than such acts or omissions
at the request or direction of Recipient. Notwithstanding the foregoing, and
except as set forth in Section 4(d) hereof, under no circumstances shall
Provider have any liability or responsibility for any act or omission of any New
Subcontractor that can be characterized as a failure to adequately or
appropriately perform any New Subcontracted Services if the applicable New
Subcontracted Services otherwise meet the service level standards described in
Section 3(a) hereof. Notwithstanding the foregoing, if Recipient contracts
directly with any subcontractor for the provision of any Transition Services,
Provider shall have no further obligations or responsibilities with respect to
such Transition Services, and Provider shall have no liability whatsoever for
any acts or omissions of such subcontractor. Provider will provide reasonable
advance notice to Recipient of any new subcontractor permitted hereunder but not
required to be approved in advance by Recipient, and any Transition Services
provided by any such new subcontractor will be provided on the same terms and
conditions as such new subcontractor is contractually bound to provide any
similar services to Provider and/or its Affiliates generally. As of the date of
this Agreement, to Provider's Knowledge, no global, enterprise-wide or
multi-business unit arrangement with a new subcontractor that would result in
the provision of Transition Services by such new subcontractor is currently
anticipated.

          (c) Right to Disclose. Provider shall use commercially reasonable
efforts to procure from IBM and each other Subcontractor the right to disclose
to Recipient those portions of the applicable contract between Provider (or an
Affiliate of Provider) and such Subcontractor relating to service levels for any
Transition Service. Schedule 4(c) sets forth a list of all Current
Subcontractors for which Provider does not have the right to disclose such
information as of the Effective Date.

          (d) Subcontractor Benefits. In addition to all other rights and
obligations of the parties with respect to Subcontractors as set forth herein,
all benefits that inure to Provider under Provider's contractual arrangements
with any Subcontractors shall be passed through to Recipient to the extent such
benefits relate to the Transition Services provided by such Subcontractor.

          Section 5. Consideration for Services; Fee Dispute Resolution.

          (a) Consideration for Transition Services and Designated Services. In
full consideration for Provider (or a permitted Subcontractor) providing the
Transition Services and Designated Services hereunder and any and all rights
granted hereunder, Recipient shall pay to Provider and reimburse Provider for,
each of the following:

               (i) the (A) loaded cost of each Transition Employee who is an
     employee of Provider or any of its Affiliates during the applicable
     measurement period and (B) cost, on a pass-through basis, of each
     Transition Employee who is an independent contractor of Provider or any of
     its Affiliates during the applicable measurement period, as set forth on
     Schedule 5(a)(i);

               (ii) all fees and other charges, on a pass-through basis, from
     Subcontractors relating to the Transition Services;

                                      -12-
<PAGE>

               (iii) the cost of any Provider employees (other than Transition
     Employees) providing IT Services, which cost will be at the hourly rates
     set forth on Schedule 5(a)(iii);

               (iv) the cost of any other Provider employees providing
     Transition Services (other than Transition Employees and employees
     providing IT Services), which cost will be Provider's loaded cost
     associated with such employee, determined by Provider in accordance with
     Schedule 5(a)(iv);

               (v) the (A) loaded cost of each Retained Employee who is an
     employee of Provider or of any of its Affiliates during the applicable
     measurement period, and (B) cost, on a pass-through basis, of each Retained
     Contractor who is an independent contractor of Provider or of any of its
     Affiliates during the applicable measurement period, as set forth on
     Schedule 5(a)(v); and

               (vi) all of Provider's direct costs in connection with the
     provision of Transition Services and Designated Services (e.g. travel
     expenses, computer and telephone costs for Transition Employees and
     Retained Employees, consent or additional license fees charged by third
     party licensors in connection with Provider providing or Recipient
     Transition Group receiving the Transition Services and the Designated
     Services hereunder); provided, that all travel will be pre-approved by
     Recipient and will be reimbursed in accordance with Recipient's travel
     reimbursement guidelines provided to Provider in writing; direct costs in
     excess of $1,000 that are not listed on Schedule 5(a)(vi) will not be
     incurred without the prior approval of Recipient's Transition Project
     Manager.

For the avoidance of doubt, the overarching principle in the calculation of the
consideration for the Transition Services and the Designated Services is that
Provider will neither sustain a loss, nor earn a profit, as a result of the
provision of such services. In no event shall Recipient be obligated to
reimburse Provider, subject to Section 6(b)(i) hereof, for any fees, such as
"kill fees" that would have been incurred by Provider as a result of Provider's
decision to sell the Business.

          (b) Consideration for Special Projects. Pricing for any Special
Projects will be negotiated separately in good faith and mutually agreed to by
the parties.

          (c) Payment. Commencing with the calendar month ending January 31,
2005, Provider shall provide Recipient with accurate TSA Monthly Invoices by the
fifteenth (15th) day of the month following the end of each calendar month for
(i) all Transition Services and Designated Services rendered by Provider during
such month, and (ii) all invoices related to the Transition Services and
Designated Services received from Subcontractors or other third parties during
such month (the parties acknowledging that there may be a lag in the submission
of charges from third parties relating to the provision of Transition Services
and Designated Services and that any such lag shall not excuse Recipient from
its obligation to timely make payment of all undisputed amounts set forth in the
TSA Monthly Invoices, provided, that Provider uses its commercially reasonable
efforts to obtain such Subcontractor or third party invoices). Payment of all
undisputed amounts in each TSA Monthly Invoice shall be due and payable within
sixty (60) days of Recipient's receipt of such TSA Monthly Invoice.

          (d) Fee Dispute Resolution. If a dispute arises as to any TSA Monthly
Invoice, the parties shall use their commercially reasonable efforts to reach an
agreement with

                                      -13-
<PAGE>

respect to such disputed amount. If the respective parties at Recipient and
Provider responsible for preparing and reviewing, as the case may be, the TSA
Monthly Invoices are unable to reach an agreement within ten (10) Business Days
after Recipient has notified Provider that there is a fee dispute, then the
Transition Project Managers of Recipient and Provider shall confer and use their
commercially reasonable efforts to come to a resolution of the dispute. If the
parties are unable to agree upon a resolution of the dispute within ten (10)
Business Days after the Transition Project Managers of Recipient and Provider
have conferred, then the dispute shall be settled in accordance with Section 22
hereof.

          (e) Taxes. Any local or state sales tax, transfer tax, value-added
tax, goods and services tax or similar tax (including any such taxes that are
required to be withheld, but excluding all other taxes including, but not
limited to, taxes based upon or calculated by reference to income, receipts or
capital) ("Taxes") imposed on the fees paid to Provider pursuant to this Section
5 shall be separately stated on the relevant invoice and shall be paid by
Recipient to Provider. Provider shall be responsible for submitting Taxes to the
appropriate taxing authority.

          (f) TSA Records. Provider shall maintain true and correct records of
all receipts, invoices, reports and other documents relating to the Transition
Services and Designated Services rendered hereunder (the "TSA Records") in
accordance with its standard accounting practices and procedures, consistently
applied, which practices and procedures are employed by Provider in its
provision of Transition Services and Designated Services.

          Section 6. Term and Termination.

          (a) Period of Services. Provider hereby agrees to provide or cause to
be provided the Transition Services and the Designated Services for the period
of time beginning on the Effective Date and ending eighteen (18) months
thereafter, unless such service is earlier terminated as provided herein.
Recipient may earlier terminate this Agreement, any Transition Service provided
hereunder, or the Designated Services in accordance with Section 6(b) below and
either party may earlier terminate this Agreement in accordance with Section
6(c) below. In the event that Recipient requests that Provider provide any
Transition Service or the Designated Services beyond the eighteen (18) month
anniversary of the Effective Date, Provider will consider such request, and the
parties shall negotiate in good faith to determine whether they can agree on
terms (including pricing) for the extension of the term of this Agreement with
respect to such Transition Service or Designated Services.

          (b) Termination of Individual Transition Services or Designated
Services.

               (i) Termination of Transition Services. Any specific Transition
     Service may be terminated by Recipient in accordance with this Section 6(b)
     or by either party in accordance with Section 6(c). The termination of any
     particular Transition Service in accordance with this Section 6(b) shall
     not terminate any other Transition Service or any Special Project or
     terminate this Agreement with respect to any other Transition Service or
     Special Project. Whenever Recipient desires to terminate a Transition
     Service, for any reason or no reason, Recipient shall provide to Provider
     not fewer than thirty (30) days, or such greater number of days as may be
     designated on

                                      -14-
<PAGE>

     Schedule 2(a)(i) with respect to any Scheduled Service, prior to the
     proposed termination date, written notice describing the Transition Service
     to be terminated and the termination date. Upon such termination date,
     charges for such terminated Transition Service shall cease to accrue, but
     Recipient shall continue to be responsible for the costs of any other
     services being provided hereunder, including, without limitation, the cost
     of all Transition Employees who continue to be employed following the
     termination of such Transition Service, subject to Provider's obligation to
     manage the number of Transition Employees as described herein. It is
     expressly understood that so long as the required notice is given in
     accordance with this Section 6(b), Recipient Transition Group shall have no
     obligation to pay for any "early-termination" or "kill fee" costs or
     expenses payable to third parties (including, without limitation,
     Subcontractors and independent contractors) or incurred internally by
     Provider as a result of the termination of Transition Services in
     accordance with the terms of this Section 6(b) or the termination,
     diminishment or other modification of services or equipment provided to
     Provider by a third party, which costs would have been incurred by Provider
     upon the disposition of the Business if no Transition Services were
     provided. No such termination of any Transition Service shall in any way
     affect Provider's obligation to provide or make available any other service
     provided or required pursuant to this Agreement or Recipient's obligation
     to pay for the same, all in accordance with the terms of this Agreement.

               (ii) Resumed Services. During the term of this Agreement (not to
     extend beyond eighteen (18) months, except as provided above), Recipient
     may request that Provider resume the performance of any
     previously-terminated Transition Service. If, using commercially reasonable
     efforts, Provider can resume the performance of such Transition Service
     utilizing Transition Employees who continue to be employed at the time of
     the request, taking into account the skills and experience of such
     Transition Employees and any other demands on the time of such Transition
     Employees in connection with provision of other Transition Services,
     Provider will resume the performance of such terminated Transition Service
     within a commercially reasonable period of time not to exceed thirty (30)
     days following the date of Recipient's request.

               (iii) Termination of Designated Services. The Designated Services
     shall terminate automatically upon the removal from the roster of Retained
     Employees and Retained Contractors of, respectively, the last Retained
     Employee and Retained Contractor in accordance with the provisions of
     Section 2(g).

          (c) Termination of Agreement.

               (i) Either party (the "Terminating Party") may terminate this
     Agreement (or with respect to Section 6(c)(i)(A), any particular Transition
     Service(s)) with immediate effect by notice in writing to the other party
     (the "Other Party") upon or at any time after the occurrence of any of the
     following events:

               (A) The Other Party is in default of any of its material
               obligations under this Agreement, or if Provider is in default of
               any of its material obligations with respect to any particular
               Transition Service, and (if the breach is capable of being
               remedied) has failed to remedy the breach

                                      -15-
<PAGE>

               within thirty (30) days after receipt of notice in writing from
               the Terminating Party giving the particulars of the breach;

               (B) The Other Party shall commence a voluntary case or other
               proceeding seeking liquidation, reorganization or other relief
               with respect to itself or its debts under any bankruptcy,
               insolvency or other similar law now or hereafter in effect, or
               seeking the appointment of a trustee, receiver, liquidator,
               custodian or other similar official for it or any substantial
               part of its property, or shall consent to any such relief or to
               the appointment of or taking possession by any such official in
               an involuntary case or other proceeding commenced against it, or
               shall make a general assignment for the benefit of creditors, or
               shall fail generally to pay its debts as they become due, or
               shall take any corporate action to authorize any of the
               foregoing; and

               (C) An involuntary case or other proceeding shall be commenced
               against the Other Party seeking liquidation, reorganization or
               other relief with respect to it or its debts under any
               bankruptcy, insolvency or other similar law now or hereafter in
               effect or seeking the appointment of a trustee, receiver,
               liquidator, custodian or other similar official for it or any
               substantial part of its property, and such involuntary case or
               other proceeding shall remain undismissed and unstayed for a
               period of sixty (60) days, or an order for relief shall be
               entered against the Other Party.

               (ii) If this Agreement is terminated by Recipient in accordance
     with Section 6(c)(i), (iii) or (iv) hereof, or if any portion of this
     Agreement is terminated by Recipient in accordance with Section 6(c)(i)(A)
     or 6(c)(iii) hereof, subject to Section 25 hereof, as Recipient's sole and
     exclusive remedy, Recipient shall be entitled to recover, and Provider
     shall pay to Recipient, Recipient Transition Group's reasonable and actual
     incremental costs (in excess of the costs expected to be incurred by
     Recipient Transition Group under this Agreement) incurred in procuring
     substitute services for a period of time following termination of the
     Agreement (not to extend beyond the day that is eighteen (18) months after
     the Effective Date) or such relevant portion thereof that is reasonable
     under the circumstances until Recipient Transition Group can arrange for
     Recipient Transition Group or a third party to commence providing the
     terminated Transition Services and Designated Services. Subject to Section
     25 hereof, upon payment of such incremental costs, if any, in accordance
     with this Section 6(c)(ii), Provider shall have no further liability or
     obligation to Recipient pursuant to this Agreement. In the event that
     Recipient terminates the Agreement pursuant to Section 6(c)(i), (iii) or
     (iv), and such termination is the primary cause of Recipient's inability to
     provide any services in accordance with its obligations under the
     Administrative Services Agreement, Recipient shall have no liability under
     the Administrative Services Agreement for its failure to meet its
     obligations to provide such affected services until such time as Recipient,
     using commercially reasonable efforts, finds an alternative source for such
     Transition Service or Designated Service or a work-around sufficient to
     enable Recipient to resume providing such services in accordance with its
     obligations under the

                                      -16-
<PAGE>

     Administrative Services Agreement, the incremental costs associated with
     which shall be reimbursed by Provider.

               (iii) If Provider entirely fails to perform any particular
     Transition Service required hereunder for a period of fifteen (15) days or
     more for any reason other than Recipient Transition Group's failure to take
     actions required of Recipient under this Agreement, Recipient may terminate
     this Agreement as to such Transition Service upon written notice to
     Provider, with termination to be effective upon receipt of such notice or
     on such later date as Recipient may specify.

               (iv) Subject to Section 10(a), if, for a period of five (5)
     consecutive Business Days or more, Provider entirely fails to perform the
     Transition Services required hereunder as a whole in substantially all
     respects and to such an extent that the ability of the Recipient Transition
     Group to continue the Business as a whole is endangered, unless such
     failure was caused primarily by the act or omission of Recipient Transition
     Group, Recipient may terminate this Agreement upon written notice to
     Provider specifying a termination date.

          (d) Effect of Termination; Return of Materials. As promptly as
practicable upon termination of this Agreement, or, if applicable, upon earlier
termination of any particular Transition Service and any related Transition
Assistance or, if applicable, upon earlier termination of the Designated
Services, and except as otherwise set forth in the Technology Transfer and
License Agreement and subject to Provider's rights to retain an instance of all
Data and a copy of all Computer Programs as described therein, (A) each party
will return to the other party all materials and property in its possession or
control (or the possession or control of an Affiliate) which is owned by or
licensed to such other party or its Affiliates, and (B)(i) all materials and
property (to the extent embodied in a tangible form) that constitute any part of
the Transferred Assets (as defined in the Asset Purchase Agreement), which
materials and property are no longer needed for the performance of other
Transition Services or other Transition Assistance or Designated Services under
this Agreement, shall be delivered to Recipient in such machine readable format
and media as mutually agreed upon by the parties and (ii) copies of any and all
additions or modifications made or caused to be made to the Owned
Principally-Used Computer Programs (including, to the extent available, both
object code and source code) by either Provider or Recipient for the benefit of
Recipient under this Agreement shall be provided to Recipient and no copies
thereof shall be retained by Provider.

          (e) Transition Assistance. In preparation for the discontinuation of
any Transition Service provided under this Agreement, at Recipient's request,
Provider shall, consistent with its obligation to provide Transition Services
hereunder and with the cooperation and assistance of Recipient, use commercially
reasonable efforts to provide such knowledge transfer services and to take such
steps as are reasonably required in order to facilitate a smooth and efficient
transition and/or migration of records and responsibilities to Recipient so as
to minimize any disruption of services ("Transition Assistance"). Recipient
shall cooperate with Provider to allow Provider to complete the Transition
Assistance as early as is commercially reasonable to do so. As part of the
Transition Assistance, the parties will work together to develop a
mutually-agreeable transition plan (the "Transition Plan") setting forth the
respective tasks to be accomplished by each party in connection with the orderly
transition and a schedule

                                      -17-
<PAGE>

pursuant to which the tasks are to be completed. Such Transition Assistance
shall be considered an additional Scheduled Service, and the fees and costs
charged by Provider for providing the same shall be set forth in a schedule
agreed to by the parties, or, in the absence of agreement of the parties for any
particular service, shall be Provider's loaded costs of providing the same,
which costs shall be in accordance with the rates and methodologies described in
Section 5 hereof.

          Section 7. Transition Project Management. Each of Provider and
Recipient Transition Group shall appoint a Transition Project Manager. Each
Transition Project Manager may appoint or designate in writing, directed to the
other Transition Project Manager, a person or persons to act in his or her stead
on day-to-day matters within various functional areas such as, by way of
example, and not in limitation, primary contacts to deal with IT matters,
actuarial matters or financial matters. The Transition Project Manager may serve
as the primary contact point for his or her respective principal with respect to
issues that may arise during the performance of this Agreement; provided, that,
(i) except for those duties expressly assigned to the Transition Project
Managers hereunder, neither Transition Project Manager, nor any designee of
either Transition Project Manager, shall have the authority to bind his or her
respective principal and (ii) neither Transition Project Manager, nor any
designee of either Transition Project Manager, shall have the authority to
change the terms or conditions of this Agreement. Each party's initial
Transition Project Manager, along with his or her title and relevant contact
information (including business address, email address, telephone number and
facsimile number), are identified on Schedule 7(a). Any party may, by notice
given to the other party, replace its Transition Project Manager hereunder,
provided that notice of such change shall be effective upon receipt.

          Section 8. Relationships Among the Parties. Nothing in this Agreement
shall cause the relationship between Provider and Recipient Transition Group to
be deemed to constitute an agency, partnership or joint venture. The terms of
this Agreement are not intended to constitute a joint employer for any purpose
between any of the parties and their Affiliates. Each of the parties agrees that
the provisions of this Agreement as a whole are not intended to, and do not,
constitute control of the other party (or any Affiliates thereof) or provide it
with the ability to control such other party (or any Affiliates thereof), and
each party hereto expressly disclaims any right or power under this Agreement to
exercise any power whatsoever over the management or policies of the other (or
any Affiliates thereof). Except as otherwise expressly set forth herein, neither
Provider nor Recipient Transition Group shall incur any liability with respect
to the financial obligations of the other party under this Agreement.

          Section 9. Compliance With and Changes to Laws and Policies.

          (a) Compliance with General Laws. Nothing in this Agreement shall
oblige either party hereto to act in breach of the requirements of any law,
ordinance, rule, regulation or order of any governmental entity applicable to
it, including, but not limited to, securities and insurance laws, written policy
statements of securities commissions, insurance and other regulatory
authorities, and the by-laws, rules, regulations and written policy statements
of relevant securities and self-regulatory organizations or order of any
governmental entity concerning privacy.

                                      -18-
<PAGE>

          (b) Regulatory Matters. Provider shall cooperate with Recipient
Transition Group and any regulatory authorities that supervise Recipient
Transition Group in connection with meeting any regulatory requirements
applicable to entities that provide Transition Services to Recipient.

          (c) Privacy Policies.

               (i) Compliance. Recipient shall at all times remain in material
     compliance with each Provider Privacy Policy and any other Provider
     internal policies or guidelines provided to Recipient in writing and set
     forth in Schedule 9(c)(i), except that Recipient shall not be bound by any
     Privacy Promise (as referenced in Schedule 9(c)(i)) or any other promises
     made by Provider to non-institutional customers. Provider shall at all
     times remain in material compliance with each Recipient Privacy Policy and
     any other Recipient internal policies or guidelines provided to Provider in
     writing and set forth in Schedule 9(c)(i).

               (ii) Amendment. During the term of this Agreement, neither
     Provider nor Recipient will, without the prior written consent of the other
     party (which shall not be unreasonably withheld or delayed), amend its
     Privacy Policy except (i) (A) as would not or would not be likely to
     materially adversely affect Provider's ability to perform the Transition
     Services and (B) as would not or would not be likely to materially
     adversely affect Recipient Transition Group's ability to receive and use
     the Transition Services or (ii) as required by a change in any applicable
     statute, law, ordinance, rule, regulation or order of any governmental
     entity concerning privacy or (iii) as is necessary in order to provide a
     Transition Service. Each of Provider and Recipient shall provide the other
     party with commercially reasonable prior written notice of any change in
     any Privacy Policy.

          Section 10. Inability to Perform Services; Technology Changes.

          (a) Inability to Perform Services. In the event that Provider is
unable to perform all or any portion of the Transition Services as required by
this Agreement, or by reason of its failure to act in accordance with Section
2(g), all or any portion of the Designated Services, for any reason for a period
that can reasonably be expected to exceed five (5) consecutive Business Days,
Provider shall provide notice to Recipient of its inability to perform the
services and shall cooperate with Recipient Transition Group in obtaining an
alternative means of receiving such services, and the terms of Section 2(a)(iv)
shall apply. In addition to any service level credits conferred to Recipient's
benefit pursuant to Section 3(d) or any other remedies available under this
Agreement, Provider shall be responsible for (i) all costs incurred in restoring
the service and (ii) if such service is not restored within a commercially
reasonable time, all incremental costs incurred in procuring an alternative
provider of such services (in excess of the costs expected to be incurred by
Recipient Transition Group for such services under this Agreement), provided, in
either case, that such costs for which Provider is responsible shall be reduced,
and shall become the responsibility of Recipient, to the extent that the
inability of Provider to perform any or a portion of any Transition Service was
caused by Recipient.

                                      -19-
<PAGE>

          (b) Disaster Recovery. Provider shall maintain security and disaster
recovery procedures to protect data owned by Recipient as well as Recipient's
networks and systems utilized in providing the Transition Services, all in
accordance with commercially reasonable practices.

          (c) Technology Changes. Each party shall provide written notice to the
other of any proposed or implemented Technology Changes that reasonably should
be expected to (i) have a material adverse effect on the other party, (ii) have
a material adverse effect on the functionality or performance of, or materially
decrease the resource efficiency of, one or more Transition Services or
Designated Services or (iii) materially increase the cost of Transition Services
or Designated Services provided hereunder. Within ten (10) days following the
receipt of such written notice, the Transition Project Managers of each party
shall meet to negotiate in good faith any appropriate actions to be taken in
light of such Technology Change. Such notice shall be given as far in advance of
such Technology Change as is practicable. All planned network outages affecting
Recipient shall be subject to written notice by Provider, to be given as far in
advance of such planned network outages as is practicable. Each party shall be
responsible for implementing all changes to its respective computing
environment, including changes to programs, manual procedures, job control
language statements, distribution parameters, and schedules.

          Section 11. Covenants and Other Agreements.

          (a) Compliance with Laws. Each party shall be responsible for
complying with all Applicable Laws then in effect pertaining to such party's
business and operations and its performance of this Agreement.

          (b) Non-Infringement. Provider covenants that except for (i) any
failure to receive any required third party consents and (ii) any actions taken
at the specific request or direction of Recipient Transition Group, its
provision of the Transition Services and Designated Services and Recipient's
receipt of the Transition Services and Designated Services hereunder will not
infringe any trademark, trade name, trade dress or other intellectual property
right of any third party.

          (c) Lack of Harmful Components. Provider covenants that it will
utilize commercially available anti-virus software in accordance with industry
standards for the purpose of preventing the introduction of any virus, disabling
code or other such malware into Recipient's systems or data in the provision of
the Transition Services and the Designated Services.

          (d) Third-Party Contracts and Restrictions. To the extent that (i) the
Retained Computer Programs used to provide the Transition Services or Designated
Services include software or other technology licensed from third parties, or
(ii) the Transition Services or Designated Services include the services of
Third Party Vendors or are provided through permitted Subcontractors, it is
intended and agreed that the Transition Services and Designated Services
provided to Recipient under this Agreement shall be within the scope and on the
terms and conditions established by the third-party licensors, vendors or
providers. This Agreement is not intended to constitute a sublicense of any of
the Retained Computer Programs or technology

                                      -20-
<PAGE>

provided by third-party licensors or to create a commercial service bureau in
favor of Recipient or the Recipient Transition Group, but instead is a services
agreement between Provider and a former business unit of Provider. In the event
that Provider encounters a restriction or objection from a third-party licensor,
vendor or provider that prevents Provider, as a practical matter from providing
any Transition Service or Designated Service as contemplated by this Agreement,
then Provider shall so notify Recipient and the parties will confer to decide
upon an alternative solution, which may include seeking necessary consents or
licenses, replacing the affected resource, or adopting a work-around. Provider
gives no assurance about whether such a restriction or objection can or may
arise, but Provider shall be required to (x) implement an alternative means of
providing any relevant Transition Services or (y) cooperate with the Retained
Employees and Retained Contractors and provide reasonable assistance to
Recipient and the Retained Employees and Retained Contractors in the
implementation of an alternative means of providing any relevant Designated
Services, as applicable, in each case after consulting with Recipient as
required by the foregoing sentence. The cost of providing any relevant
Transition Service or Designated Service through such alternative means shall be
paid by Recipient. To the extent that Provider fails to implement such
alternative means of providing such relevant Transition Service for reasons
other than Recipient's refusal to pay for the same, unless such failure was
caused primarily by the act or omission of Recipient Transition Group, and such
failure is the primary cause of Recipient's inability to provide any services in
accordance with its obligations under the Administrative Services Agreement,
Recipient shall have no liability under the Administrative Services Agreement
for its failure to meet its obligations to provide such affected services until
such time as the earlier of the following: (A) Provider provides such
alternative means of providing the relevant Transition Service to the extent
required to enable Recipient to resume providing such services in accordance
with its obligations under the Administrative Services Agreement, or (B)
Recipient, using commercially reasonable efforts, finds an alternative source
for the relevant Transition Service or a work-around sufficient to enable
Recipient to resume providing such services in accordance with its obligations
under the Administrative Services Agreement, the incremental costs associated
with which shall be reimbursed by Provider.

          Section 12. Dispute Resolution.

          (a) Resolution by the Parties. If any dispute shall arise between
Provider and Recipient Transition Group under this Agreement (excluding any
dispute regarding the amount of any TSA Monthly Invoice, as to which the
provisions of Section 5(d) shall apply), whether such dispute arises before or
after the termination of this Agreement, such dispute shall be submitted for
resolution by the parties in accordance with this Section 12(a). In the event of
such a dispute, the party raising the problem shall submit notice thereof in
writing to Transition Project Manager of the other party. The Transition Project
Manager shall be provided access to the relevant notice for purposes of
resolving the dispute. If the Transition Project Managers are unable to resolve
the dispute within ten (10) days after the dispute has been referred to them (or
such longer time period as the Transition Project Managers agree upon in
writing), either party shall be free to pursue its rights and remedies hereunder
in accordance with Section 22.

          (b) Relief in Court. Nothing in this Agreement shall prevent the
parties hereto from seeking equitable relief (including, without limitation,
injunctive relief or specific

                                      -21-
<PAGE>

performance as set forth in Section 30) in a court for any breach or threatened
breach of any provision hereof.

          Section 13. Indemnification.

          (a) Indemnification by Provider. Provider agrees to indemnify and hold
harmless each party in the Recipient Transition Group and their respective
directors, officers and employees (collectively, the "Recipient Indemnified
Parties") from any and all Losses arising out of or caused by (i) any breach by
Provider of any obligation or covenant set forth in this Agreement or in any
certificate or other document delivered pursuant hereto, (ii) Provider's or its
employees' acts or omissions with respect to the Retained Employees or Retained
Contractors, (iii) the acts or omissions of the Retained Employees or Retained
Contractors other than such acts or omissions at the request or direction of
Recipient Transition Group, (iv) Provider's or any of its Affiliate's
responsibilities as employer of the Retained Employees, (v) Provider's or any of
its Affiliate's current or former contractual arrangements with any of the
Retained Contractors, or (vi) any successful enforcement of this indemnity.

          (b) Indemnification by Recipient. Recipient agrees to indemnify and
hold harmless Provider and its directors, officers and employees (collectively,
the "Provider Indemnified Parties") from any and all Losses arising out of or
caused by (i) any breach by Recipient of any obligation or covenant set forth in
this Agreement or in any certificate or other document delivered pursuant
hereto, (ii) Recipient's or its employees' acts or omissions with respect to the
Retained Employees or (iii) any successful enforcement of this indemnity.

          (c) Indemnification Procedures. In the event either Recipient or
Provider shall have a claim for indemnity against the other party under the
terms of this Agreement with respect to any third-party claim, the parties shall
follow the procedures set forth in Section 10.3 of the Asset Purchase Agreement.
The parties hereto shall follow the procedures set forth in Section 22 hereof
with respect to any other claim for indemnity.

          (d) Exclusive Remedy. Each party hereto expressly acknowledges that
other than as expressly set forth herein, (i) the provisions of this Section 13
shall be the sole and exclusive remedy for all claims, actions, damages,
liabilities, costs and expenses caused as a result of any breach by the other
party of any covenant set forth in this Agreement or in any certificate or other
document delivered pursuant hereto, except that the remedies of injunction and
specific performance shall remain available to the parties hereto, and (ii) no
party shall be liable or responsible to any other party hereto or its Affiliates
for punitive, incidental, consequential or multiplied damages, in accordance
with Section 25 hereof, other than for the liable party's fraud, theft,
embezzlement or other intentional acts or omissions of bad faith.

          Section 14. Ownership, Data and Security.

          (a) Ownership. Each party will, subject to the provisions of the Asset
Purchase Agreement, the Technology Transfer and License Agreement and any
express license granted under this Agreement, retain all rights in any Computer
Programs, ideas, concepts, know-how, development tools, techniques or any other
proprietary material or information that it owned or developed prior to the date
of

                                      -22-
<PAGE>

this Agreement, or acquires or develops after the date of this Agreement
without reference to or use of the intellectual property or proprietary material
or information of the other party. All work product created for or delivered to
Recipient by Provider (alone or with others) as part of the Transition Services
or the Designated Services, together with associated intellectual property
rights, shall, unless otherwise indicated in a writing signed by both parties,
be owned by Recipient, except that Recipient shall acquire no right thereby in
confidential information or trademarks, service marks, or logos of Provider or
its Affiliates. Notwithstanding any other provision of this Agreement, all
general industry knowledge which either party obtains as a result of the
performance of prescribed work may be used by either party without restriction
unless and then only to the extent that such activity would disclose the other
party's confidential information in violation of the confidentiality obligations
of the parties, including pursuant to Section 26 hereof.

          (b) Recipient Data. All data pertaining to Recipient or its customers
processed by Provider or stored in Provider's systems or otherwise in Provider's
possession or control as part of the Transition Services or the Designated
Services shall be owned by Recipient, shall be used only to carry out this
Agreement, and may not be disclosed to anyone except employees, agents, and
subcontractors of Provider who have a "need to know" the same in order to
further or facilitate the performance of the Transition Services or the
Designated Services and who are required to respect the confidentiality thereof.
When and as reasonably requested by Recipient (and subject to the rights of
Provider and its Affiliates pursuant to the Technology Transfer and License
Agreement), Provider shall return to Recipient copies of Recipient's
information, data, and files (which information, data and files shall be
segregated from that of Provider, at Provider's expense) in such form as
Recipient may reasonably request. The parties agree that the confidentiality of
all such data is governed by Section 5.7 of the Asset Purchase Agreement and the
Confidentiality Agreement.

          (c) Security. Provider shall maintain substantially the same
safeguards as are in use with respect to Provider's data to protect against (i)
the accidental or unauthorized deletion, destruction or alteration of Data (as
defined in the Asset Purchase Agreement) in Provider's possession or control and
(ii) the unauthorized access thereto. Provider shall maintain substantially the
same safeguards which are in use with respect to Provider's software to protect
against (x) the accidental or unauthorized deletion, destruction or alteration
of the Owned Principally-Used Computer Programs and the Licensed Computer
Programs in Provider's possession or control and (y) the unauthorized access
thereto. If Recipient requests reasonable additional safeguards, Provider shall
use commercially reasonable efforts to provide such additional safeguards at
rates and upon terms and conditions as mutually agreed to in writing by the
parties. Provider shall comply with all requirements of applicable regulatory
authorities regarding data retention.

          Section 15. Force Majeure.

          (a) General. Subject to Section 15(b), below, neither party shall be
liable for any failure or delay in the performance of its obligations (other
than payment obligations) under this Agreement to the extent such failure or
delay both:

                                      -23-
<PAGE>

               (i) is caused by any of the following: acts of war, terrorism,
     civil riots or rebellions; quarantines, embargoes and other similar unusual
     governmental action; extraordinary elements of nature or acts of God; and

               (ii) could not have been prevented by the non-performing party's
     reasonable precautions or commercially accepted processes, or could not
     reasonably be circumvented by the non-performing party through the use of
     substitute services, alternate sources, work around plans or other means by
     which the requirements of Recipient for services substantially similar to
     the Transition Services hereunder would be satisfied.

          (b) Definition. Events meeting both of the criteria set forth in
subsections 15(a)(i) and 15(a)(ii) above are referred to individually and
collectively as "Force Majeure Events." The parties expressly acknowledge that
Force Majeure Events do not include vandalism, the regulatory acts of
governmental agencies, labor strikes, or the non performance by third parties or
Subcontractors relied on for the delivery of the Transition Services, unless
such failure or non-performance by a third party or Subcontractor is itself
caused by a Force Majeure Event.

          (c) Excuse of Performance. Upon the occurrence of a Force Majeure
Event, the non-performing party shall be excused from any further performance of
the affected obligation(s) (other than payment obligations) for so long as such
circumstances prevail, provided that such party continues to attempt to
recommence performance to the greatest extent possible without delay. To the
extent that Provider (i) fails to provide or fails to timely provide any
Transition Service as required under this Agreement, (ii) by reason of its
failure to act in accordance with Section 2(g), fails to timely provide all or
any portion of the Designated Services, or (iii) fails to meet the applicable
standard of service for any Transition Service as set forth herein as a result
of a Force Majeure Event, unless such failure was caused primarily by the act or
omission of Recipient Transition Group, and such failure is the primary cause of
Recipient's inability to provide any services in accordance with its obligations
under the Administrative Services Agreement, Recipient shall have no liability
under the Administrative Services Agreement for its failure to meet its
obligations to provide such affected Administrative Services until such time as
the earlier of the following: (A) Provider cures such failure hereunder to the
extent required to enable Recipient to resume providing such services in
accordance with its obligations under the Administrative Services Agreement, or
(B) Recipient, using commercially reasonable efforts, finds an alternative
source for such Transition Service or Designated Service or a work-around
sufficient to enable Recipient to resume providing such services in accordance
with its obligations under the Administrative Services Agreement, the
incremental costs associated with which shall be reimbursed by Provider.

          (d) Disaster Recovery Plan. Notwithstanding any other provision of
this Section 15, a Force Majeure Event that results in failure or substantial
delay of the performance by Provider of its obligations under this Agreement
shall obligate Provider, if appropriate, to implement its disaster recovery plan
within the time periods described therein.

          (e) Termination Upon Force Majeure. If a Force Majeure Event causes a
material failure or delay in the performance of any Transition Services for more
than thirty (30)

                                      -24-
<PAGE>

consecutive days, Recipient may, at its option, immediately terminate this
Agreement without liability to Provider, other than liability for payment of
unpaid invoices or for services previously rendered.

          Section 16. Survival. The provisions of Section 6(b) (Termination of
Individual Transition Services or Designated Services), 6(c) (Termination of
Agreement), 6(d) (Effect of Termination; Return of Materials), Section 9
(Compliance With and Changes to Law and Policies), Section 13 (Indemnification),
this Section 16, Section 17 (Notices), Section 20 (Waivers and Amendments),
Section 21 (Exhibits; Schedules), Section 22 (Arbitration), Section 23
(Governing Law and Jurisdiction), Section 25 (Waiver of Jury Trial), Section 26
(Confidentiality), Section 27 (Captions) and Section 30 (Equitable Rights) shall
survive the termination or expiration of this Agreement.

          Section 17. Notices. Any notice, request or other communication to be
given by any party hereunder shall be in writing and shall be delivered
personally, sent by registered or certified mail, postage prepaid, by overnight
courier with written confirmation of delivery. Any such notice shall be deemed
given when so delivered personally, or if mailed, on the date shown on the
receipt therefor, or if sent by overnight courier, on the date shown on the
written confirmation of delivery. Such notices shall be given to the following
address:

To Provider:          Security Life of Denver Insurance Company
                      Attention: Mark Tullis
                      c/o ING North America Insurance Corporation
                      5780 Powers Ferry Road NW
                      Atlanta, GA 30327

With a concurrent
copy to:              B. Scott Burton
                      Corporate General Counsel
                      ING North America Insurance Corporation
                      5780 Powers Ferry Road NW
                      Atlanta, GA 30327

                      and

                      David A. Massey, Esq.
                      Sutherland Asbill & Brennan LLP
                      1275 Pennsylvania Ave., NW
                      Washington, DC 20004-2415

To Recipient:         Scottish Re (U.S.) Inc.
                      13840 Ballantyne Corporate Place, Suite 500
                      Charlotte, NC  28277
                      Attention:  Nate Gemmiti, Esq.

                                      -25-
<PAGE>

With a copy to:       Stephen G. Rooney, Esq.
                      LeBoeuf, Lamb, Greene & MacRae, L.L.P.
                      125 West 55th Street
                      New York, NY 10019

          Section 18. Binding Effect; Assignment. This Agreement shall be
binding upon and inure to the benefit of the parties and their respective
successors, permitted assigns and legal representatives. Neither this Agreement,
nor any of the rights, interests, or obligations hereunder, may be assigned in
whole or in part, by any party without the prior written consent of the other
parties hereto and any assignment without such consent shall be null and void;
provided, that upon prior written notice to Provider, Recipient may assign to
any one or more of its current or after-acquired Affiliates all or any part of
its rights, interest or obligations under this Agreement. Notwithstanding the
foregoing, Recipient may assign this Agreement in its entirety in connection
with a sale of all or substantially all of the Business, without the consent of
Provider. Notwithstanding any provision of this Agreement, it is understood for
the avoidance of any doubt that in the event a party shall merge or consolidate
with another Person or enter into a business combination with a third party,
such merger, consolidation or business combination shall not be deemed to be an
assignment and, accordingly, no consent of any Person shall be required
hereunder.

          Section 19. Execution in 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 one and the same instrument. Each counterpart may consist of a number
of copies hereof each signed by less than all, but together signed by all of the
parties hereto. Each counterpart may be delivered by facsimile transmission,
which transmission shall be deemed delivery of an originally executed document.

          Section 20. Waivers and Amendments. Except as otherwise permitted
herein, any modification, supplement, or amendment to this Agreement, or any
waiver hereunder, shall be effective only if made in writing and signed by the
designated officer of each of the parties hereto. No waiver of any provision of
this Agreement and no consent to any default under this Agreement shall be
effective unless the same shall be in writing and signed by or on behalf of the
party against whom such waiver or consent is claimed. No course of dealing or
failure of any party to strictly enforce any term, right or condition of this
Agreement shall be construed as a waiver of such term, right or condition.
Waiver by either party of any default by the other party shall not be deemed a
waiver of any other default.

          Section 21. Exhibits; Schedules. All exhibits and schedules
incorporated by referenced in this Agreement shall be deemed incorporated into
and shall become part of this Agreement.

          Section 22. Arbitration

          (a) Arbitration. After the Closing Date, except as otherwise set forth
in Section 5(d) and Section 12, and except with regard to relief pursuant to
Section 30, any dispute between Recipient and Provider with reference to the
interpretation or performance of this Agreement, whether such dispute arises
before or after the termination of this Agreement, shall

                                      -26-
<PAGE>

be decided through negotiation and, if necessary, arbitration as set forth in
this Section 22. The parties intend this Section 22 to be enforceable in
accordance with the Federal Arbitration Act (9 U.S.C., Section 1) including any
amendments to that Act which are subsequently adopted. In the event that either
party refuses to submit to arbitration as required by Section 22(a), the other
party may request the court specified in Section 23 to compel arbitration in
accordance with the Federal Arbitration Act.

          (b) Procedures. Provider and Recipient intend that any dispute between
them arising under this Agreement be resolved without resort to any litigation.
Accordingly, Provider and Recipient agree that they will negotiate diligently
and in good faith to agree on a mutually satisfactory resolution of any such
dispute; provided, however, that if any such dispute cannot be so resolved by
them within sixty (60) calendar days (or such longer period as the parties may
agree) after commencing such negotiations, Provider and Recipient agree that
they will submit such dispute to arbitration in the manner specified in, and
such arbitration proceeding will be conducted in accordance with, the Commercial
Arbitration Rules of the American Arbitration Association.

          The arbitration hearing will be before a panel of three disinterested
arbitrators, each of whom must be a present or former officer of a life
insurance or life reinsurance company familiar with the life reinsurance
business, or other professionals with experience in life insurance or
reinsurance, provided that such professionals shall not have performed services
for either party within the previous five (5) years, and provided further that
no arbitrator shall be a former employee of either Provider or any of its
Affiliates. Provider and Recipient will each appoint one arbitrator by written
notification to the other party within thirty (30) calendar days after the date
of the mailing of the notification initiating the arbitration. These two
arbitrators will then select the third arbitrator within sixty (60) calendar
days after the date of the mailing of the notification initiating arbitration.

          If either Provider or Recipient fails to appoint an arbitrator, or
should the two arbitrators be unable to agree upon the choice of a third
arbitrator, the president of the American Arbitration Association will appoint
the necessary arbitrators within thirty (30) calendar days after the request to
do so.

          The arbitrators shall base their decision on the terms and conditions
of this Agreement. However, if the terms and conditions of this Agreement do not
explicitly dispose of an issue in dispute between the parties, the arbitrators
may base their decision on the customs and practices of the life insurance and
life reinsurance industry together with an interpretation of the law. The vote
or approval of a majority of the arbitrators will decide any question considered
by the arbitrators. The place of arbitration will be determined by the
arbitrators. Each decision (including without limitation each award) of the
arbitrators will be final and binding on all parties and will be nonappealable,
except that (at the request of either Provider or Recipient) any award of the
arbitrators may be confirmed (or, if appropriate, vacated) by a judgment entered
by the court specified in Section 23. In no event may the arbitrators award
punitive or exemplary damages, except for the liable party's fraud, theft,
embezzlement or other intentional acts or omissions of bad faith. Each party
will be responsible for paying (i) all fees and expenses charged by its
respective counsel, accountants, actuaries, and other representatives in
conjunction with such arbitration and (ii) one-half of the fees and expenses
charged by each arbitrator.

                                      -27-
<PAGE>

          Section 23. Governing Law and Jurisdiction. This Agreement shall be
governed by and construed in accordance with the laws of the State of New York
applicable to contracts entered into therein, without reference to principles of
choice of law or conflicts of laws. Each party hereto irrevocably and
unconditionally submits to the exclusive jurisdiction of any State or Federal
Court sitting in New York, over any suit, action or proceeding arising out of or
relating to this Agreement. Each party hereto agrees that service of any
process, summons, notice or document by U.S. registered mail addressed to such
party shall be effective service of process for any action, suit or proceeding
brought against such party in such court. Each party hereto irrevocably and
unconditionally waives any objection to the laying of venue of any such suit,
action or proceeding brought in any such court and any claim that any such
action, suit or proceeding brought in any such court has been brought in an
inconvenient forum. Each party hereto agrees that final judgment in any such
action, suit or proceeding brought in any such court shall be conclusive and
binding upon such party and may be enforced in any other courts to whose
jurisdiction such party may be subject, by suit upon such judgment.

          Section 24. Sole Agreement.

          (a) This Agreement may not be amended or modified in any respect
whatsoever except by instrument in writing signed by the parties hereto. This
Agreement, the Asset Purchase Agreement, the Related Agreements and the
Confidentiality Agreement, including the exhibits, schedules, and other
documents delivered pursuant hereto, constitute the entire agreement among the
parties hereto and their respective Affiliates with respect to the subject
matter hereof and supersede all prior negotiations, discussions, writings and
agreements between them with respect thereto.

          (b) This Agreement is a master agreement and shall be construed as a
separate and independent agreement for each and every Transition Service
provided under this Agreement. Any specific Transition Service may be subject to
termination in accordance with Section 6(b)(i), 6(c)(i)(A) or 6(c)(iii). Any
termination of this Agreement in accordance with Section 6(b)(i) or (c) with
respect to any particular Transition Service shall not terminate the Agreement
with respect to any other Transition Service.

          Section 25. Waiver of Jury Trial; Multiplied and Punitive Damages.
Each of the parties hereto irrevocably waives, with respect to any action filed
by either party against the other party (but not as to any action by one party
against the other seeking indemnification for a third party claim against the
party initiating the action, to the extent that such damages may be recoverable
as part of the indemnification by the indemnified party) (i) any and all right
to trial by jury, and (ii) any right to punitive, incidental, consequential or
multiplied damages, either pursuant to common law or statute, in any legal
proceedings arising out of or related to this Agreement or the transactions
contemplated hereby, except for the liable party's fraud, theft, embezzlement or
other intentional acts or omissions of bad faith.

          Section 26. Confidentiality.

          (a) Confidential Information. Each party hereto shall use at least the
same standard of care in the protection of Confidential Information of the other
party as it uses to protect its own confidential or proprietary information;
provided that such Confidential

                                      -28-
<PAGE>

Information shall be protected in at least a reasonable manner. For purposes of
this Agreement, "Confidential Information" includes all confidential or
proprietary information and documentation of any party hereto, including the
terms of this Agreement, including with respect to each party, all of its
software (including source code and object code), documentation, data, its
customer data, software and confidential information of third parties as to
which such party owes a duty of confidentiality, financial information,
information relating to the other party's planned or existing computer systems,
systems architecture, computer hardware, methods of processing and operational
methods, sales, profits, organizational restructuring, new business initiatives,
proprietary and confidential information that describes the other party's
insurance and financial products (including actuarial calculations, product
designs, and how such products are administered and managed), proprietary and
confidential information that describes the other party's product strategies or
tax interpretations or tax positions or the treatment of any item, all reports,
exhibits, and other documentation prepared by any of its Affiliates. Each party
hereto shall use the Confidential Information of the other party only in
connection with the purposes of this Agreement and shall make such Confidential
Information available only to its employees, permitted subcontractors or agents
having a "need to know" with respect to such purpose. Each party hereto shall
advise its respective employees, permitted subcontractors and agents with access
to any Confidential Information of such party's obligations under this
Agreement. The obligations in this Section 10.12 will not restrict disclosure by
a party pursuant to Applicable Law, or by order or request of any Government
Authority, subject to Section 10.12(b) hereof. Confidential Information of a
party will not be afforded the protection of this Section if such Confidential
Information was (A) developed by the other party independently as shown by its
written business records regularly kept, (B) rightfully obtained by the other
party without restriction from a third party, (C) publicly available other than
through the fault or negligence of the other party, or (D) rightfully in the
possession of the other party and not subject to any duty of confidentiality as
of the date of this Agreement.

          (b) Compulsory Disclosure. If any party is requested or required to
disclose Confidential Information of the other pursuant to any judicial or
administrative process, then such receiving party shall promptly notify the
other party to this Agreement in writing of such request or requirement. The
party whose Confidential Information is requested or required to be disclosed
shall either (i) promptly seek protective relief from such disclosure obligation
or (ii) direct the receiving party to comply with such request or requirement.
The party in receipt of Confidential Information of the other party shall
cooperate with efforts of the other party to maintain the confidentiality of
such information or to resist compulsory disclosure thereof, but any costs
incurred by the receiving party shall be reimbursed by the other party, except
for costs of the receiving party's employees. If, after a reasonable opportunity
to seek protective relief, such relief is not obtained by the party whose
Confidential Information is subject to discovery or disclosure, or if such party
fails to obtain such relief, the receiving party may disclose such portion of
such Confidential Information that such party reasonably believes, on the basis
of advice of such party's counsel, such party is legally obligated to disclose.

          (c) Unauthorized Acts. Each party hereto shall (i) notify the other
party promptly of any unauthorized possession, use, or knowledge of any
Confidential Information by any person which shall become known to it, any
attempt by any person to gain possession of Confidential Information without
authorization or any attempt to use or acquire knowledge of any Confidential
Information without authorization (collectively, "Unauthorized Access"), (ii)

                                      -29-
<PAGE>

promptly furnish to the other party full details of the Unauthorized Access and
use reasonable efforts to assist the other party in investigating or preventing
the reoccurrence of any Unauthorized Access, (iii) cooperate with the other
party in any litigation and investigation against third parties deemed necessary
by such party to protect its proprietary rights, and (iv) promptly take all
steps necessary to prevent a reoccurrence of any such Unauthorized Access.

          (d) Injunction. Each party hereto agrees that the breach by the other
party of its obligations under this Section would cause significant and
irreparable harm to the aggrieved party, which may be difficult to measure with
certainty or to compensate through money damages. Each party hereto acknowledges
that the aggrieved party shall be entitled, without proof of irreparable harm
and without waiving any other right or remedy available to it, to such
injunctive and equitable relief as may be deemed proper by a court of competent
jurisdiction.

          Section 27. Captions. The captions of this Agreement are for
convenience of reference only and shall not define or limit any of the terms or
provisions hereof.

          Section 28. Severability. Any term or provision of this Agreement
which is invalid or unenforceable in any jurisdiction shall, as to that
jurisdiction, be ineffective to the extent of such invalidity or
unenforceability without rendering invalid or unenforceable the remaining terms
and provisions of this Agreement or affecting the validity or enforceability of
any of the terms or provisions of this Agreement in any other jurisdiction, so
long as the economic or legal substance of the transactions contemplated hereby
is not affected in any manner materially adverse to any party. If any provision
of this Agreement is so broad as to be unenforceable, that provision shall be
interpreted to be only so broad as is enforceable.

          Section 29. No Third Party Beneficiaries. Except as otherwise
expressly set forth in any provision of this Agreement, nothing in this
Agreement is intended or shall be construed to give any Person, other than the
parties hereto, any legal or equitable right, remedy or claim under or in
respect of this Agreement or any provision contained herein. For the avoidance
of doubt, nothing in this Agreement shall be construed to give any Business
Employee, Transition Employee, Retained Employee or former employee of Provider
or its Affiliates or any beneficiary thereof of any legal or equitable right,
remedy or claim under or in respect of this Agreement or any provision contained
herein.

          Section 30. Equitable Rights.

          (a) Non-Performance or Certain Breaches By Provider. Provider
acknowledges and agrees that money damages would not be a sufficient remedy for
any failure of Provider to provide the services required hereunder in compliance
with the terms of this Agreement and that Recipient Transition Group shall be
entitled to seek equitable relief, including, without limitation, injunction and
specific performance, as a remedy for such non-performance or such breach by
Provider and that Provider shall not oppose the granting of such equitable
relief, unless such non-performance or breach was caused primarily by the act or
omission of Recipient Transition Group.

                                      -30-
<PAGE>

          (b) Non-Exclusive Remedy. Such remedy shall not be deemed to be the
exclusive remedy for breach of this Agreement, but shall be in addition to the
other remedies available to a party under this Agreement.

                                      -31-
<PAGE>

          IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

                                     SECURITY LIFE OF DENVER INSURANCE
                                     COMPANY

                                     By:    /s/ Mark Tullis
                                          -------------------------------------
                                          Name: Mark Tullis
                                          Title: President

                                     SCOTTISH RE (U.S.), INC.

                                     By:   /s/ Oscar Scofield
                                          -------------------------------------
                                          Name: Oscar Scofield
                                          Title: CEO/ President

                                      -32-Exhibit 4.1

                                                             Execution Copy

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

                                   INDENTURE

                                    between

                         USAA AUTO OWNER TRUST 2005-1
                                   as Issuer

                                      and

                   JPMORGAN CHASE BANK, NATIONAL ASSOCIATION
                             as Indenture Trustee

                          Dated as of March 15, 2005

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

<PAGE>

<TABLE>
<CAPTION>

                               Table of Contents
                                                                                           Page

                                   ARTICLE I
               DEFINITIONS, USAGE AND INCORPORATION BY REFERENCE

<S>             <C>                                                                          <C>
SECTION 1.1.   Definitions and Usage...........................................................2
SECTION 1.2.   Incorporation by Reference of Trust Indenture Act...............................2

                                  ARTICLE II
                                   THE NOTES

SECTION 2.1.   Form............................................................................2
SECTION 2.2.   Execution, Authentication and Delivery..........................................3
SECTION 2.3.   Temporary Notes.................................................................3
SECTION 2.4.   Tax Treatment...................................................................4
SECTION 2.5.   Registration; Registration of Transfer and Exchange.............................4
SECTION 2.6.   Mutilated, Destroyed, Lost or Stolen Notes......................................5
SECTION 2.7.   Persons Deemed Owners...........................................................6
SECTION 2.8.   Payment of Principal and Interest; Defaulted Interest...........................6
SECTION 2.9.   Cancellation....................................................................7
SECTION 2.10.  Release of Collateral...........................................................8
SECTION 2.11.  Book-Entry Notes................................................................8
SECTION 2.12.  Notices to Clearing Agency......................................................9
SECTION 2.13.  Definitive Notes................................................................9
SECTION 2.14.  Authenticating Agents...........................................................9

                                  ARTICLE III
                                   COVENANTS

SECTION 3.1.   Payment of Principal and Interest..............................................10
SECTION 3.2.   Maintenance of Office or Agency................................................10
SECTION 3.3.   Money for Payments To Be Held in Trust.........................................10
SECTION 3.4.   Existence......................................................................12
SECTION 3.5.   Protection of Indenture Trust Estate...........................................12
SECTION 3.6.   Opinions as to Indenture Trust Estate..........................................13
SECTION 3.7.   Performance of Obligations; Servicing of Receivables...........................14
SECTION 3.8.   Negative Covenants.............................................................16
SECTION 3.9.   Annual Statement as to Compliance..............................................16
SECTION 3.10.  Issuer May Consolidate, etc., Only on Certain Terms............................17
SECTION 3.11.  Successor or Transferee........................................................18
SECTION 3.12.  No Other Business..............................................................19
SECTION 3.13.  No Borrowing...................................................................19
SECTION 3.14.  Servicer's Obligations.........................................................19
SECTION 3.15.  Guarantees, Loans, Advances and Other Liabilities..............................19
SECTION 3.16.  Capital Expenditures...........................................................19

                                      i

<PAGE>

<CAPTION>
<S>             <C>                                                                          <C>
SECTION 3.17.  Further Instruments and Acts...................................................19
SECTION 3.18.  Restricted Payments............................................................19
SECTION 3.19.  Notice of Events of Default....................................................19
SECTION 3.20.  Removal of Administrator.......................................................20

                                  ARTICLE IV
                          SATISFACTION AND DISCHARGE

SECTION 4.1.   Satisfaction and Discharge of Indenture........................................20
SECTION 4.2.   Application of Trust Money.....................................................21
SECTION 4.3.   Repayment of Monies Held by Note Paying Agent..................................21

                                   ARTICLE V
                                   REMEDIES

SECTION 5.1.   Events of Default..............................................................21
SECTION 5.2.   Acceleration of Maturity; Rescission and Annulment.............................22
SECTION 5.3.   Collection of Indebtedness and Suits for Enforcement by Indenture
               Trustee........................................................................23
SECTION 5.4.   Remedies; Priorities...........................................................25
SECTION 5.5.   Optional Preservation of the Receivables.......................................28
SECTION 5.6.   Limitation of Suits............................................................28
SECTION 5.7.   Unconditional Rights of Noteholders To Receive Principal and Interest..........29
SECTION 5.8.   Restoration of Rights and Remedies.............................................29
SECTION 5.9.   Rights and Remedies Cumulative.................................................29
SECTION 5.10.  Delay or Omission Not a Waiver.................................................29
SECTION 5.11.  Control by Noteholders.........................................................30
SECTION 5.12.  Waiver of Past Defaults........................................................30
SECTION 5.13.  Undertaking for Costs..........................................................31
SECTION 5.14.  Waiver of Stay or Extension Laws...............................................31
SECTION 5.15.  Action on Notes................................................................31
SECTION 5.16.  Performance and Enforcement of Certain Obligations.............................31

                                  ARTICLE VI
                             THE INDENTURE TRUSTEE

SECTION 6.1.   Duties of Indenture Trustee....................................................32
SECTION 6.2.   Rights of Indenture Trustee....................................................33
SECTION 6.3.   Individual Rights of Indenture Trustee.........................................34
SECTION 6.4.   Indenture Trustee's Disclaimer.................................................34
SECTION 6.5.   Notice of Defaults; Insolvency or Dissolution of Depositor or the
               Seller.........................................................................35
SECTION 6.6.   Reports by Indenture Trustee to Noteholders....................................35
SECTION 6.7.   Compensation and Indemnity.....................................................35
SECTION 6.8.   Replacement of Indenture Trustee...............................................36
SECTION 6.9.   Successor Indenture Trustee by Merger..........................................37
SECTION 6.10.  Appointment of Co-Indenture Trustee or Separate Indenture Trustee..............37

                                      ii

<PAGE>

<CAPTION>
<S>            <C>                                                                          <C>
SECTION 6.11.  Eligibility; Disqualification..................................................38

                                  ARTICLE VII
                        NOTEHOLDERS' LISTS AND REPORTS

SECTION 7.1.   Issuer To Furnish Indenture Trustee Names and Addresses of
               Noteholders....................................................................38
SECTION 7.2.   Preservation of Information; Communications to Noteholders.....................39
SECTION 7.3.   Reports by Issuer..............................................................39
SECTION 7.4.   Reports by Indenture Trustee...................................................40

                                 ARTICLE VIII
                     ACCOUNTS, DISBURSEMENTS AND RELEASES

SECTION 8.1.   Collection of Money............................................................40
SECTION 8.2.   Trust Accounts.................................................................40
SECTION 8.3.   General Provisions Regarding Accounts..........................................43
SECTION 8.4.   Release of Indenture Trust Estate..............................................44
SECTION 8.5.   Opinion of Counsel.............................................................45

                                  ARTICLE IX
                            SUPPLEMENTAL INDENTURES

SECTION 9.1.   Supplemental Indentures Without Consent of Noteholders.........................45
SECTION 9.2.   Supplemental Indentures with Consent of Noteholders............................46
SECTION 9.3.   Execution of Supplemental Indentures...........................................48
SECTION 9.4.   Effect of Supplemental Indenture...............................................48
SECTION 9.5.   Conformity with Trust Indenture Act............................................49
SECTION 9.6.   Reference in Notes to Supplemental Indentures..................................49

                                   ARTICLE X
                                  PREPAYMENT

SECTION 10.1.  Prepayment.....................................................................49
SECTION 10.2.  Form of Prepayment Notice......................................................49
SECTION 10.3.  Notes Payable on Prepayment Date...............................................50

                                  ARTICLE XI
                                 MISCELLANEOUS

SECTION 11.1.  Compliance Certificates and Opinions, etc......................................50
SECTION 11.2.  Form of Documents Delivered to Indenture Trustee...............................52
SECTION 11.3.  Acts of Noteholders............................................................52
SECTION 11.4.  Notices, etc., to Indenture Trustee, Issuer and Rating Agencies................53
SECTION 11.5.  Notices to Noteholders; Waiver.................................................53
SECTION 11.6.  Alternate Payment and Notice Provisions........................................54
SECTION 11.7.  Conflict with Trust Indenture Act..............................................54
SECTION 11.8.  Effect of Headings and Table of Contents.......................................54

                                     iii

<PAGE>

<CAPTION>
<S>            <C>                                                                          <C>
SECTION 11.9.  Successors and Assigns.........................................................54
SECTION 11.10. Separability...................................................................55
SECTION 11.11. Benefits of Indenture..........................................................55
SECTION 11.12. Legal Holidays.................................................................55
SECTION 11.13. GOVERNING LAW..................................................................55
SECTION 11.14. Counterparts...................................................................55
SECTION 11.15. Recording of Indenture.........................................................55
SECTION 11.16. Trust Obligation...............................................................55
SECTION 11.17. No Petition....................................................................56
SECTION 11.18. Subordination Agreement........................................................56
SECTION 11.19. No Recourse....................................................................56
SECTION 11.20. Inspection.....................................................................56

EXHIBIT A-1    FORM OF CLASS A-1 NOTE......................................................A-1-1
EXHIBIT A-2    FORM OF CLASS A-2 NOTE......................................................A-2-1
EXHIBIT A-3    FORM OF CLASS A-3 NOTE......................................................A-3-1
EXHIBIT A-4    FORM OF CLASS A-4 NOTE......................................................A-4-1
SCHEDULE A     Schedule of Receivables......................................................SA-1
APPENDIX A     Definitions and Usage................................................Appendix-A-1

                                      iv

</TABLE>

<PAGE>

     INDENTURE, dated as of March 15, 2005 (as from time to time amended,
supplemented or otherwise modified and in effect, this "Indenture"), between
USAA AUTO OWNER TRUST 2005-1, a Delaware statutory trust, as Issuer, and
JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, a banking association organized
under the laws of the United States, as trustee and not in its individual
capacity (in such capacity, the "Indenture Trustee").

     Each party agrees as follows for the benefit of the other party and for
the equal and ratable benefit of the holders of the Issuer's Class A-1 3.0272%
Asset Backed Notes (the "Class A-1 Notes"), Class A-2 3.55% Asset Backed Notes
(the "Class A-2 Notes"), Class A-3 3.90% Asset Backed Notes (the "Class A-3
Notes") and Class A-4 4.13% Asset Backed Notes (the "Class A-4 Notes" and,
together with the Class A-1 Notes, the Class A-2 Notes and the Class A-3
Notes, the "Notes"):

                                GRANTING CLAUSE

     The Issuer hereby Grants to the Indenture Trustee at the Closing Date, as
Indenture Trustee for the benefit of the Noteholders, all of the Issuer's
right, title and interest in, to and under, whether now owned or existing or
hereafter acquired or arising, (a) the Receivables; (b) monies received
thereunder on or after the Cut-off Date; (c) the security interests in the
Financed Vehicles granted by Obligors pursuant to the Receivables and any
other interest of the Issuer in the Financed Vehicles; (d) rights to receive
proceeds with respect to the Receivables from claims on any theft, physical
damage, credit life, credit disability, or other insurance policies covering
Financed Vehicles or Obligors; (e) all of the rights to the Receivable Files;
(f) the Trust Accounts, and all amounts, securities, investments and other
property deposited in or credited to any of the foregoing, all securities
entitlements related to the foregoing and all proceeds thereof; (g) the
Receivables Purchase Agreement and the Sale and Servicing Agreement; (h)
payments and proceeds with respect to the Receivables held by the Servicer;
(i) all property (including the right to receive Liquidation Proceeds)
securing a Receivable (other than a Receivable purchased by the Servicer or
repurchased by the Depositor); (j) rebates of premiums and other amounts
relating to insurance policies and other items financed under the Receivables
in effect as of the Cut-off Date; and (k) all present and future claims,
demands, causes of action and choses in action in respect of any or all of the
foregoing and all payments on or under and all proceeds of every kind and
nature whatsoever in respect of any or all of the foregoing, including all
proceeds of the conversion thereof, voluntary or involuntary, into cash or
other liquid property, all cash proceeds, accounts, accounts receivable,
notes, drafts, acceptances, chattel paper, checks, deposit accounts, insurance
proceeds, condemnation awards, rights to payment of any and every kind and
other forms of obligations and receivables, instruments and other property
which at any time constitute all or part of or are included in the proceeds of
any of the foregoing (collectively, the "Collateral").

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

         JPMorgan Chase Bank, National Association, as Indenture Trustee on
behalf of the Noteholders, acknowledges such Grant, accepts the trusts under
this Indenture in accordance

<PAGE>

with the provisions of this Indenture and agrees to perform its duties
required in this Indenture to the best of its ability to the end that the
interests of the Noteholders may be adequately and effectively protected.

                              ARTICLE I

               DEFINITIONS, USAGE AND INCORPORATION BY REFERENCE

     SECTION 1.1. Definitions and Usage. Except as otherwise specified herein
or as the context may otherwise require, capitalized terms used but not
otherwise defined herein are defined in Appendix A hereto, which also contains
rules as to usage that shall be applicable herein.

     SECTION 1.2. Incorporation by Reference of Trust Indenture Act. Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated
by reference in and made a part of this Indenture. The following TIA terms
used in this Indenture have the following meanings:

     "indenture securities" shall mean the Notes.

     "indenture security holder" shall mean a Noteholder.

     "indenture to be qualified" shall mean this Indenture.

     "indenture trustee" or "institutional trustee" shall mean the Indenture
Trustee.

     "obligor" on the indenture securities shall mean the Issuer and any other
obligor on the indenture securities.

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

                                  ARTICLE II

                                  THE NOTES

     SECTION 2.1. Form. (a) The Class A-1 Notes, the Class A-2 Notes, the
Class A-3 Notes and the Class A-4 Notes, together with the Indenture Trustee's
certificates of authentication, shall be in substantially the forms set forth
in Exhibit A-1, Exhibit A-2, Exhibit A-3 and Exhibit A-4, respectively, with
such appropriate insertions, omissions, substitutions and other variations as
are required or permitted by this Indenture, and may have such letters,
numbers or other marks of identification and such legends or endorsements
placed thereon as may, consistently herewith, be determined by the officers
executing such Notes, as evidenced by their execution thereof. Any portion of
the text of any Note may be set forth on the reverse thereof, with an
appropriate reference thereto on the face of the Note.

                                      2

<PAGE>

     (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
the Notes set forth in Exhibit A-1, Exhibit A-2, Exhibit A-3 and Exhibit A-4
are part of the terms of this Indenture and are incorporated herein by
reference.

     SECTION 2.2. Execution, Authentication and Delivery. (a) 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.

     (b) Notes bearing the manual or facsimile signature of individuals who
were at any time Authorized Officers of the Issuer shall bind the Issuer,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Notes or did not hold
such offices at the date of such Notes.

     (c) The Indenture Trustee shall, upon Issuer Order, authenticate and
deliver the Notes for original issue in the Classes and initial aggregate
principal amounts as set in the table below.

                                      Initial Aggregate
Class                                 Principal Amount
-----                                 ----------------
Class A-1 Notes                        $229,000,000
Class A-2 Notes                        $237,000,000
Class A-3 Notes                        $393,000,000
Class A-4 Notes                        $171,177,000

     The aggregate principal amount of Class A-1 Notes, Class A-2 Notes, Class
A-3 Notes and Class A-4 Notes Outstanding at any time may not exceed those
respective amounts except as provided in Section 2.6.

     (d) The Class A-1, Class A-2, Class A-3 and Class A-4 Notes shall be
issuable as Book-Entry Notes in minimum denominations of $1,000 and in
integral multiples of $1,000 in excess thereof (except for one Note of each
class which may be issued in a denomination other than an integral of $1,000).

     (e) No Note shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose, unless there appears on such Note a
certificate of authentication substantially in the form provided for herein
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, the Issuer may execute, and upon receipt of an Issuer Order the
Indenture Trustee shall authenticate and deliver, temporary Notes that are
printed, lithographed, typewritten, mimeographed or otherwise produced,
substantially of the tenor of the Definitive Notes in lieu of which they are
issued and with such variations not inconsistent with the terms of this
Indenture

                                      3

<PAGE>

as the officers executing the temporary Notes may determine, as evidenced by
their execution of such temporary Notes.

     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 office or agency 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 therefor, a like principal amount of Definitive Notes of authorized
denominations. Until so exchanged, the temporary Notes shall in all respects
be entitled to the same benefits under this Indenture as Notes.

     SECTION 2.4. Tax Treatment. The Issuer has entered into this Indenture,
and the Notes shall be issued, with the intention that, for federal, State and
local income and franchise tax purposes, the Notes shall qualify as
indebtedness of the Issuer secured by the Indenture Trust Estate. The Issuer,
by entering into this Indenture, and each Noteholder, by its acceptance of a
Note (and each Note Owner by its acceptance of an interest in the applicable
Book-Entry Note), agree to treat the Notes for federal, State and local income
and franchise tax purposes as indebtedness of the Issuer.

     SECTION 2.5. Registration; Registration of Transfer and Exchange. (a) The
Issuer shall cause to be kept a register (the "Note Register") in which,
subject to such reasonable regulations as it may prescribe, the Issuer shall
provide for the registration of Notes and the registration of transfers of
Notes. The Indenture Trustee initially shall be the "Note Registrar" for the
purpose of registering Notes and transfers of Notes as herein provided. Upon
any resignation of any Note Registrar, the Issuer shall promptly appoint a
successor or, if it elects not to make such an appointment, assume the duties
of Note Registrar. If a Person other than the Indenture Trustee is appointed
by the Issuer as Note Registrar, (i) the Issuer shall 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, (ii) the
Indenture Trustee shall have the right to inspect the Note Register at all
reasonable times and to obtain copies thereof, and (iii) 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.

     (b) Upon surrender for registration of transfer of any Note at the office
or agency of the Issuer to be maintained as provided in Section 3.2, if the
requirements of Section 8-401(a) of the UCC are met, an Authorized Officer of
the Issuer shall execute, and the Indenture Trustee shall authenticate and the
Noteholder shall obtain from the Indenture Trustee, in the name of the
designated transferee or transferees, one or more new Notes of the same Class
in any authorized denomination, of a like aggregate principal amount.

     (c) 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 such office
or agency. Whenever any Notes are so surrendered for exchange, if the
requirements of Section 8-401(a) of the UCC are met, the Issuer

                                      4

<PAGE>

shall execute, the Indenture Trustee shall authenticate, and the Noteholder
shall obtain from the Indenture Trustee, the Notes which the Noteholder making
such exchange is entitled to receive.

     (d) 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.

     (e) Every Note presented or surrendered for registration of transfer or
exchange shall be (i) duly endorsed by, or be accompanied by a written
instrument of transfer in form satisfactory to the Indenture Trustee duly
executed by, the Noteholder thereof or such Noteholder's attorney duly
authorized in writing, with such signature guaranteed by an "eligible
guarantor institution" meeting the requirements of the Note Registrar and (ii)
accompanied by such other documents or evidence as the Indenture Trustee may
require.

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

     (g) The preceding provisions of this Section 2.5 notwithstanding, the
Issuer shall not be required to make and the Note Registrar need not register
transfers or exchanges of Notes selected for redemption or of any Note for a
period of fifteen (15) days preceding the Payment Date for any payment with
respect to such Note.

     (h) Each Noteholder, by its acceptance of a Note (and each Note Owner, by
its acceptance of a beneficial interest in a Note) will be deemed to have
represented that (x) it is not, and is not acquiring the Note on behalf of, or
with "plan assets" (as determined under Department of Labor Regulation
ss.2510.3-101 or otherwise) of, a Plan, or any employee benefit plan subject
to Similar Law, or (y) its acquisition and holding of the Note do not give
rise to a transaction prohibited under Section 406 of ERISA or Section 4975 of
the Code or under any applicable Similar Law for which an exemption, all of
the conditions of which are satisfied, is not available.

     SECTION 2.6. Mutilated, Destroyed, Lost or Stolen Notes. (a) If (i) any
mutilated Note is surrendered to the Indenture Trustee or the Note Registrar,
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, as defined in Section 8-303 of the
UCC, and provided that the requirements of Section 8-405 of the UCC are met,
the Issuer shall execute, and upon Issuer Request the Indenture Trustee shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Note, a replacement Note of the same Class;
provided, however, that if any such destroyed, lost or stolen Note, but not a
mutilated Note, shall have become or within seven (7) days shall be due and
payable, or shall have been called for redemption, instead of issuing a
replacement Note, the Issuer may pay such destroyed, lost or stolen Note when
so due or payable

                                      5

<PAGE>

or upon the Prepayment Date without surrender thereof. If, after the delivery
of such replacement Note or payment of a destroyed, lost or stolen Note
pursuant to the proviso to the preceding sentence, a protected purchaser of
the original Note in lieu of which such replacement Note was issued presents
for payment such original Note, the Issuer and the Indenture Trustee shall be
entitled to recover such replacement Note (or such payment) from the Person to
whom it was delivered or any Person taking such replacement Note from such
Person to whom such replacement Note was delivered or any assignee of such
Person, except a protected purchaser, and shall be entitled to recover upon
the 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.

     (b) Upon the issuance of any replacement Note under this Section 2.6, the
Issuer may require the payment by the Noteholder of such Note of a sum
sufficient to cover any tax or other governmental charge that may be imposed
in relation thereto and any other reasonable expenses (including the fees and
expenses of the Indenture Trustee) connected therewith.

     (c) Every replacement Note issued pursuant to this Section 2.6 in
replacement of any mutilated, destroyed, lost or stolen Note shall constitute
an original additional contractual obligation of the Issuer, whether or not
the mutilated, destroyed, lost or stolen Note shall be at any time enforceable
by anyone, and shall be entitled to all the benefits of this Indenture equally
and proportionately with any and all other Notes duly issued hereunder.

     (d) The provisions of this Section 2.6 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 2.7. Persons Deemed Owners. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Indenture Trustee and
any agent of the Issuer or the Indenture Trustee may treat the Person in whose
name any Note is registered (as of the day of determination) as the owner of
such Note for the purpose of receiving payments of principal of and interest,
if any, on such Note and for all other purposes whatsoever, whether or not
such Note be overdue, and none of the Issuer, the Indenture Trustee or any
agent of the Issuer or the Indenture Trustee shall be affected by notice to
the contrary.

     SECTION 2.8. Payment of Principal and Interest; Defaulted Interest. (a)
The Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class
A-4 Notes shall accrue interest at the Class A-1 Rate, the Class A-2 Rate, the
Class A-3 Rate and the Class A-4 Rate, respectively, as set forth in Exhibit
A-1, Exhibit A-2, Exhibit A-3 and Exhibit A-4, respectively, and such interest
shall be due and payable on each Payment Date as specified therein, subject to
Section 3.1. Any installment of interest or principal, if any, payable on any
Note that is punctually paid or duly provided for by the Issuer on the
applicable Payment Date shall be paid to the Person in whose name such Note
(or one or more Predecessor Notes) is registered on the Record Date either by
wire transfer in immediately available funds, to the account of such
Noteholder at a bank or other entity having appropriate facilities therefor,
if such Noteholder shall have provided to the Note Registrar appropriate
written instructions at least five (5) Business Days prior to such Payment
Date and such Noteholder's Notes in the aggregate evidence a denomination of
not less than $1,000,000, or, if not, by check mailed first-class

                                      6

postage prepaid to such Person's address as it appears on the Note Register on
such Record Date; provided that, unless Definitive Notes have been issued to
Note Owners pursuant to Section 2.13, with respect to Notes registered on the
Record Date in the name of the nominee of the Clearing Agency (initially, such
nominee to be Cede & Co.), payment shall be made by wire transfer in
immediately available funds to the account designated by such nominee, and
except for the final installment of principal payable with respect to such
Note on a Payment Date, Prepayment Date or the applicable Final Scheduled
Payment Date, which shall be payable as provided below. The funds represented
by any such checks returned undelivered shall be held in accordance with
Section 3.3.

     (b) The principal of each Note shall be payable in installments on each
Payment Date as provided in this Indenture and in the forms of Notes set forth
in Exhibit A-1, Exhibit A-2, Exhibit A-3 and Exhibit A-4 hereto.
Notwithstanding the foregoing, the entire unpaid principal amount of each
Class of Notes shall be due and payable, if not previously paid, on the date
on which an Event of Default shall have occurred and be continuing, if the
Indenture Trustee or the Noteholders of Notes evidencing not less than a
majority of the principal amount of the Notes have declared the Notes to be
immediately due and payable in the manner provided in Section 5.2. All
principal payments on each Class of Notes shall be made pro rata to the
Noteholders of such Class entitled thereto. The Indenture Trustee shall notify
the Person in whose name a Note is registered at the close of business on the
Record Date preceding the Payment Date on which the Issuer expects that the
final installment of principal of and interest on such Note shall be paid.
Such notice shall be mailed or transmitted by facsimile prior to such final
Payment Date and shall specify that such final installment 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
installment. Notices in connection with redemption of Notes shall be mailed to
Noteholders as provided in Section 10.2.

     (c) If the Issuer defaults in a payment of interest on the Notes, the
Issuer shall pay defaulted interest (plus interest on such defaulted interest
to the extent lawful) at the applicable Note Interest Rate on the Payment Date
following such default. The Issuer shall pay such defaulted interest to the
Persons who are Noteholders on the Record Date for such following Payment
Date.

     SECTION 2.9. Cancellation. All Notes surrendered for payment,
registration of transfer or exchange shall, if surrendered to any Person other
than the Indenture Trustee, be delivered to the Indenture Trustee and shall be
promptly cancelled 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 cancelled
by the Indenture Trustee. No Notes shall be authenticated in lieu of or in
exchange for any Notes cancelled as provided in this Section 2.9, except as
expressly permitted by this Indenture. All cancelled Notes may be held or
disposed of by the Indenture Trustee in accordance with its standard retention
or disposal policy as in effect at the time unless the Issuer shall direct by
an Issuer Order that they be destroyed or returned to it and so long as such
Issuer Order is timely and the Notes have not been previously disposed of by
the Indenture Trustee.

                                      7
<PAGE>

     SECTION 2.10. Release of Collateral. Subject to Section 11.1 and the
terms of the Basic Documents, the Indenture Trustee shall release property
from the lien of this Indenture only upon receipt of an Issuer Request
accompanied by an Officer's Certificate, an Opinion of Counsel and Independent
Certificates in accordance with TIA Sections 314(c) and 314(d)(1) or an
Opinion of Counsel in lieu of such Independent Certificates to the effect that
the TIA does not require any such Independent Certificates. If the Commission
shall issue an exemptive order under TIA Section 304(d) modifying the Issuer's
obligations under TIA Sections 314(c) and 314(d)(1), subject to Section 11.1
and the terms of the Basic Documents, the Indenture Trustee shall release
property from the lien of this Indenture in accordance with the conditions and
procedures set forth in such exemptive order.

     SECTION 2.11. Book-Entry Notes. The Notes, upon original issuance, shall
be issued in the form of typewritten Notes representing the Book-Entry Notes,
to be delivered to The Depository Trust Company, the initial Clearing Agency,
by, or on behalf of, the Issuer. The Book-Entry Notes shall be registered
initially on the Note Register in the name of Cede & Co., the nominee of the
initial Clearing Agency, and no Note Owner thereof shall receive a Definitive
Note (as defined below) representing such Note Owner's interest in such Note,
except as provided in Section 2.13. Unless and until definitive, fully
registered Notes (the "Definitive Notes") have been issued to such Note Owners
pursuant to Section 2.13:

          (i) the provisions of this Section 2.11 shall be in full force and
     effect;

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

          (iii) to the extent that the provisions of this Section 2.11
     conflict with any other provisions of this Indenture, the provisions of
     this Section 2.11 shall control;

          (iv) the rights of Note Owners shall be exercised only through the
     Clearing Agency and shall be limited to those established by law and
     agreements between such Note Owners and the Clearing Agency and/or the
     Clearing Agency Participants pursuant to the Security Depository
     Agreement. Unless and until Definitive Notes are issued to Note Owners
     pursuant to Section 2.13, the initial Clearing Agency shall make
     book-entry transfers among the Clearing Agency Participants and receive
     and transmit payments of principal of and interest on the Book-Entry
     Notes to such Clearing Agency Participants (and neither the Indenture
     Trustee nor the Note Registrar shall have any liability or responsibility
     therefor); and

          (v) whenever this Indenture requires or permits actions to be taken
     based upon instructions or directions of Noteholders of Notes evidencing
     a specified percentage of the principal amount of the Notes Outstanding
     (or any Class thereof), the Clearing Agency shall be deemed to represent
     such percentage only to the extent that it has received instructions to
     such effect from Note Owners and/or Clearing Agency Participants owning
     or representing, respectively, such required percentage of the

                                      8

<PAGE>

     beneficial interest of the Notes Outstanding (or Class thereof) and has
     delivered such instructions to the Indenture Trustee.

     SECTION 2.12. Notices to Clearing Agency. Whenever a notice or other
communication to the Noteholders of Book-Entry Notes is required under this
Indenture, unless and until Definitive Notes shall have been issued to the
Note Owners pursuant to Section 2.13, the Indenture Trustee shall give all
such notices and communications specified herein to be given to Noteholders of
Book-Entry Notes to the Clearing Agency, and shall have no obligation to such
Note Owners.

     SECTION 2.13. Definitive Notes. With respect to any Class or Classes of
Book-Entry 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 such Class of Book-Entry Notes
and the Administrator is unable to locate a qualified successor or (ii) after
the occurrence of an Event of Default or an Event of Servicing Termination,
Note Owners of such Class of Book- Entry Notes evidencing beneficial interests
aggregating not less than a majority of the principal amount of such Class
advise the Indenture Trustee and 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 such Class of Note Owners, then the Clearing Agency
shall notify all Note Owners of such Class and the Indenture Trustee of the
occurrence of such event and of the availability of Definitive Notes to the
Note Owners of the applicable Class requesting the same. Upon surrender to the
Indenture Trustee of the typewritten Notes representing the Book-Entry Notes
by the Clearing Agency, accompanied by registration instructions, the Issuer
shall execute and the Indenture Trustee shall authenticate the Definitive
Notes in accordance with the instructions of the Clearing Agency. None of the
Issuer, the Note Registrar or the Indenture Trustee shall be liable for any
delay in delivery of such instructions and may conclusively rely on, and shall
be protected in relying on, such instructions. Upon the issuance of Definitive
Notes to Note Owners, the Indenture Trustee shall recognize the holders of
such Definitive Notes as Noteholders.

     SECTION 2.14. Authenticating Agents. (a) The Indenture Trustee may
appoint one or more Persons (each, an "Authenticating Agent") with power to
act on its behalf and subject to its direction in the authentication of Notes
in connection with issuance, transfers and exchanges under Sections 2.2, 2.3,
2.5, 2.6 and 9.6, as fully to all intents and purposes as though each such
Authenticating Agent had been expressly authorized by those Sections to
authenticate such Notes. For all purposes of this Indenture, the
authentication of Notes by an Authenticating Agent pursuant to this Section
2.14 shall be deemed to be the authentication of Notes "by the Indenture
Trustee."

     (b) Any corporation into which any Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, consolidation or conversion to which any Authenticating Agent
shall be a party, or any corporation succeeding to all or substantially all of
the corporate trust business of any Authenticating Agent, shall be the
successor of such Authenticating Agent hereunder, without the execution or
filing of any further act on the part of the parties hereto or such
Authenticating Agent or such successor corporation.

                                      9

<PAGE>

     (c) Any Authenticating Agent may at any time resign by giving written
notice of resignation to the Indenture Trustee and the Owner Trustee. The
Indenture Trustee may at any time terminate the agency of any Authenticating
Agent by giving written notice of termination to such Authenticating Agent and
the Owner Trustee. Upon receiving such notice of resignation or upon such a
termination, the Indenture Trustee may appoint a successor Authenticating
Agent and shall give written notice of any such appointment to the Owner
Trustee.

     (d) The Administrator agrees to pay to each Authenticating Agent from
time to time reasonable compensation for its services. The provisions of
Sections 2.9 and 6.4 shall be applicable to any Authenticating Agent.

                                 ARTICLE III

                                  COVENANTS

     SECTION 3.1. Payment of Principal and Interest. The Issuer shall duly and
punctually pay the principal of and interest, if any, on the Notes in
accordance with the terms of the Notes and this Indenture. Without limiting
the foregoing, on each Payment Date the Issuer shall cause to be paid pursuant
to Section 8.2 all amounts on deposit in the Collection Account and the
Principal Distribution Account with respect to the Collection Period preceding
such Payment Date and deposited therein pursuant to the Sale and Servicing
Agreement. Amounts properly withheld under the Code by any Person from a
payment to any Noteholder of interest and/or principal shall be considered as
having been paid by the Issuer to such Noteholder for all purposes of this
Indenture.

     SECTION 3.2. Maintenance of Office or Agency. The Issuer shall maintain
in the Borough of Manhattan, The City of New York, an office or agency where
Notes may be surrendered for registration of transfer or exchange, and where
notices and demands to or upon the Issuer in respect of the Notes and this
Indenture may be served. The Issuer hereby initially appoints the Indenture
Trustee to serve as its agent, and its Corporate Trust Office as its office,
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 any
such office or agency. If, at any time, the Issuer shall fail to maintain any
such office or agency or shall fail to furnish the Indenture Trustee with the
address thereof, such surrenders, notices and demands may be made or served at
the Corporate Trust Office, and the Issuer hereby appoints the Indenture
Trustee as its agent to receive all such surrenders, notices and demands.

     SECTION 3.3. Money for Payments To Be Held in Trust. (a) As provided in
Sections 8.2 and 5.4(b), all payments of amounts due and payable with respect
to any Notes that are to be made from amounts withdrawn from the Trust
Accounts shall be made on behalf of the Issuer by the Indenture Trustee or by
another Note Paying Agent, and no amounts so withdrawn from the Trust Accounts
for payments of Notes shall be paid over to the Issuer, except as provided in
this Section 3.3.

     (b) On or before the Business Day preceding each Payment Date and
Prepayment Date, the Issuer shall deposit or cause to be deposited (including
the provision of written instructions to the Indenture Trustee to make any
required withdrawals from the Reserve

                                      10

<PAGE>

Account and to deposit such amounts in the Collection Account) in the
Collection Account an aggregate sum sufficient to pay the amounts then
becoming due under the Notes, such sum to be held in trust for the benefit of
the Persons entitled thereto, and (unless the Note Paying Agent is the
Indenture Trustee) shall promptly notify the Indenture Trustee of its action
or failure so to act.

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

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

          (v) comply with all requirements of the Code and any State or local
     tax law 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 Note Paying Agent to pay to the Indenture Trustee all
sums held in trust by such Note Paying Agent, such sums to be held by the
Indenture Trustee upon the same trusts as those upon which the sums were held
by such Note Paying Agent; and upon such payment by any Note Paying Agent to
the Indenture Trustee, such Note 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 Note Paying Agent in trust for the
payment of any amount due with respect to any Note and remaining unclaimed for
two (2) years after such amount has become due and payable shall be discharged
from such trust and be paid to the Issuer on Issuer Request; and the
Noteholder of such Note shall thereafter, as an unsecured general creditor,
look only to

                                      11

<PAGE>

the Issuer for payment thereof (but only to the extent of the amounts so paid
to the Issuer), and all liability of the Indenture Trustee or such Note Paying
Agent with respect to such trust money shall thereupon cease; provided,
however, that the Indenture Trustee or such Note Paying Agent, before being
required to make any such repayment, shall at the expense and direction of the
Issuer cause to be published once, in a newspaper published in the English
language, customarily published on each Business Day and of general
circulation in The City of New York, notice that such money remains unclaimed
and that, after a date specified therein, which shall not be less than thirty
(30) days from the date of such publication, any unclaimed balance of such
money then remaining shall be repaid to the Issuer. The Indenture Trustee
shall also adopt and employ, at the expense and direction of the Issuer, any
other reasonable means of notification of such repayment (including, but not
limited to, mailing notice of such repayment to Noteholders 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 Note Paying Agent, at the last
address of record for each such Noteholder).

     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 Indenture Trust Estate.

     SECTION 3.5. Protection of Indenture Trust Estate. (a) The Issuer shall
from time to time execute, deliver and file, as applicable, all such
supplements and amendments hereto and all such financing statements,
continuation statements, instruments of further assurance and other
instruments, and shall take such other action necessary or advisable 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;

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

          (iii) enforce any of the Collateral; or

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

     The Issuer hereby authorizes the Indenture Trustee to file any financing
statement, continuation statement or other instrument required to be executed
pursuant to this Section 3.5; provided, however, that the Indenture Trustee
shall be under no obligation to file any such financing statement,
continuation statement or other instrument required pursuant to this Section
3.5.

                                      12

<PAGE>

     (b) The Issuer hereby represents and warrants that, as to the Collateral
pledged to the Indenture Trustee for the benefit of the Noteholders, on the
Closing Date:

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

          (ii) the Receivables constitute "tangible chattel paper" under the
     applicable UCC;

          (iii) the Issuer owns and has good and marketable title to such
     Collateral free and clear of any liens, claims or encumbrances of any
     Person, other than the interest Granted under this Indenture;

          (iv) the Issuer has acquired its ownership in such Collateral in
     good faith without notice of any adverse claim;

          (v) the Trust Accounts are not in the name of any person other than
     the Indenture Trustee and the Issuer has not consented to the bank
     maintaining the Trust Accounts to comply with the instructions of any
     person other than the Indenture Trustee;

          (vi) the Issuer has not assigned, pledged, sold, granted a security
     interest in or otherwise conveyed any interest in such Collateral (or, if
     any such interest has been assigned, pledged or otherwise encumbered, it
     has been released) other than interests Granted pursuant to this
     Indenture;

          (vii) the Issuer has caused or will have caused, within ten days
     after the Closing Date, the filing of all appropriate financing
     statements in the proper filing office in the appropriate jurisdiction
     under the applicable law in order to perfect the security interest
     Granted hereunder in the Receivables;

          (viii) other than its Granting hereunder, the Issuer has not Granted
     such Collateral, the Issuer has not authorized the filing of and is not
     aware of any financing statements against the Issuer that include a
     description of such Collateral other than the financing statement in
     favor of the Indenture Trustee, and the Issuer is not aware of any
     judgment or tax lien filing against it; and

          (ix) the information relating to such Collateral set forth in the
     Schedule of Receivables (attached hereto as Schedule A) is correct.

     SECTION 3.6. Opinions as to Indenture Trust Estate. (a) On the Closing
Date, the Issuer shall furnish to the Indenture Trustee an Opinion of Counsel
either stating that, in the opinion of such counsel, such action has been
taken with respect to the recording and filing of this Indenture, any
indentures supplemental hereto, and any other requisite documents, and with
respect to the authorization 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

                                      13

<PAGE>

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 30 in each calendar year, beginning on April 30,
2006, 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 filing of any financing statements and
continuation statements and any other action that may be required by law 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 such lien and security
interest. Such 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 filing of any financing
statements and continuation statements that shall, in the opinion of such
counsel, be required to maintain the lien and security interest of this
Indenture until April 30 in the following calendar year.

     SECTION 3.7. Performance of Obligations; Servicing of Receivables. (a)
The Issuer shall not take any action and shall use its best efforts not to
permit any action to be taken by others that would release any Person from any
of such Person's material covenants or obligations under any instrument or
agreement included in the Indenture Trust Estate or that would result in the
amendment, hypothecation, subordination, termination or discharge of, or
impair the validity or effectiveness of, any such instrument or agreement,
except as expressly provided in this Indenture and the other Basic Documents.

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

     (c) The Issuer shall punctually perform and observe all of its
obligations and agreements contained in this Indenture, the other Basic
Documents and in the instruments and agreements included in the Indenture
Trust Estate, including, but not limited to, filing or causing to be filed all
financing statements and continuation statements required to be filed under
the UCC by the terms of this Indenture and the Sale and Servicing Agreement in
accordance with and within the time periods provided for herein and therein.
Except as otherwise expressly provided therein, the Issuer shall not waive,
amend, modify, supplement or terminate any Basic Document or any provision
thereof without the consent of the Indenture Trustee and the Noteholders of
Notes evidencing not less than a majority of the principal amount of each
Class of Notes then Outstanding, voting separately.

     (d) If the Issuer shall have knowledge of the occurrence of an Event of
Servicing Termination under the Sale and Servicing Agreement, the Issuer shall
promptly notify the Indenture Trustee and the Rating Agencies thereof and
shall specify in such notice the action, if any, the Issuer is taking in
respect of such default. If an Event of Servicing Termination shall arise from
the failure of the Servicer to perform any of its duties or obligations under
the Sale

                                      14

<PAGE>

and Servicing Agreement with respect to the Receivables, the Issuer shall take
all reasonable steps available to it to remedy such failure.

     (e) As promptly as possible after the giving of notice of termination to
the Servicer of the Servicer's rights and powers pursuant to Section 7.1 of
the Sale and Servicing Agreement or the Servicer's resignation in accordance
with the terms of the Sale and Servicing Agreement, the Issuer shall appoint a
Successor Servicer meeting the requirements of the Sale and Servicing
Agreement, and such Successor Servicer shall accept its appointment by a
written assumption in a form acceptable to the Indenture Trustee. In the event
that a Successor Servicer has not been appointed at the time when the Servicer
ceases to act as Servicer, the Indenture Trustee without further action shall
automatically be appointed the Successor Servicer. If the Indenture Trustee
shall be legally unable to act as Successor Servicer, it may appoint, or
petition a court of competent jurisdiction to appoint, a Successor Servicer.
The Indenture Trustee may resign as the Servicer by giving written notice of
such resignation to the Issuer and in such event shall be released from such
duties and obligations, such release not to be effective until the date a new
servicer enters into a servicing agreement with the Issuer as provided below.
Upon delivery of any such notice to the Issuer, the Issuer shall obtain a new
servicer as the Successor Servicer under the Sale and Servicing Agreement. Any
Successor Servicer (other than the Indenture Trustee or any Affiliate thereof)
shall (i) be an established institution having a net worth of not less than
$100,000,000 and whose regular business shall include the servicing of
automotive receivables and whose appointment as Successor Servicer satisfies
the Rating Agency Condition and (ii) enter into a servicing agreement with the
Issuer having substantially the same provisions as the provisions of the Sale
and Servicing Agreement applicable to the Servicer. If, within thirty (30)
days after the delivery of the notice referred to above, the Issuer shall not
have obtained such a new servicer, the Indenture Trustee may appoint, or may
petition a court of competent jurisdiction to appoint, a Successor Servicer.
In connection with any such appointment, the Indenture Trustee may make such
arrangements for the compensation of such successor as it and such successor
shall agree, subject to the limitations set forth below and in the Sale and
Servicing Agreement, and, in accordance with Section 7.2 of the Sale and
Servicing Agreement, the Issuer shall enter into an agreement with such
successor for the servicing of the Receivables (such agreement to be in form
and substance satisfactory to the Indenture Trustee). Notwithstanding anything
herein or in the Sale and Servicing Agreement to the contrary, in no event
shall the Indenture Trustee be liable for any Servicing Fee or for any
differential in the amount of the Servicing Fee paid hereunder and the amount
necessary to induce any Successor Servicer to act as Successor Servicer under
the Basic Documents and the transactions set forth or provided for therein. If
the Indenture Trustee shall succeed to the Servicer's duties as servicer of
the Receivables as provided herein, it shall do so in its individual capacity
and not in its capacity as Indenture Trustee and, accordingly, the provisions
of Article VI hereof shall be inapplicable to the Indenture Trustee in its
duties as the successor to the Servicer and the servicing of the Receivables.
In case the Indenture Trustee shall become successor to the Servicer under the
Sale and Servicing Agreement, the Indenture Trustee shall be entitled to
appoint as Servicer any one of its Affiliates; provided that the Indenture
Trustee, in its capacity as the Servicer, shall be fully liable for the
actions and omissions of such Affiliate in such capacity as Successor
Servicer.

     (f) Upon any termination of the Servicer's rights and powers pursuant to
the Sale and Servicing Agreement, the Issuer shall promptly notify the
Indenture Trustee. As soon as a

                                      15

<PAGE>

Successor Servicer is appointed by the Issuer, the Issuer shall notify the
Indenture Trustee of such appointment, specifying in such notice the name and
address of such Successor Servicer.

     (g) 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 hereby agrees that it shall not, without the
prior written consent of the Indenture Trustee or the Noteholders of Notes
evidencing not less than a majority in principal amount of the Notes
Outstanding, amend, modify, waive, supplement, terminate or surrender, or
agree to any amendment, modification, supplement, termination, waiver or
surrender of, the terms of any Collateral (except to the extent otherwise
provided in the Sale and Servicing Agreement or the other Basic Documents).

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

          (i) except as expressly permitted by this Indenture, the Trust
     Agreement or the Sale and Servicing Agreement, sell, transfer, exchange
     or otherwise dispose of any of the properties or assets of the Issuer,
     including those included in the Indenture Trust Estate, unless directed
     to do so by the Indenture Trustee;

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

          (iii) dissolve or liquidate in whole or in part; or

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

     SECTION 3.9. Annual Statement as to Compliance. The Issuer shall deliver
to the Indenture Trustee, within 120 days after the end of each calendar year,
an Officer's Certificate stating, as to the Authorized Officer signing such
Officer's Certificate, that:

                                      16

<PAGE>

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

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

     SECTION 3.10. Issuer May Consolidate, etc., Only on Certain Terms. (a)
The Issuer shall not consolidate or merge with or into any other Person,
unless:

          (i) the Person (if other than the Issuer) formed by or surviving
     such consolidation or merger shall be a Person organized and existing
     under the laws of the United States of America or any State 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 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;

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

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

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

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

          (vi) the Issuer shall have delivered to the Indenture Trustee an
     Officer's Certificate and an Opinion of Counsel each stating that such
     consolidation or merger and such supplemental indenture comply with this
     Article III and that all conditions precedent herein provided for
     relating to such transaction have been complied with (including any
     filing required by the Exchange Act).

     (b) Other than as specifically contemplated by the Basic Documents, the
Issuer shall not convey or transfer any of its properties or assets, including
those included in the Indenture Trust Estate, to any Person, unless:

          (i) the Person that acquires by conveyance or transfer the
     properties and assets of the Issuer the conveyance or transfer of which
     is hereby restricted shall (A) be a

                                      17

<PAGE>

     United States citizen or a Person organized and existing under the laws
     of the United States of America or any State, (B) expressly assumes, by
     an indenture supplemental hereto, executed and delivered to the Indenture
     Trustee, in form satisfactory to the Indenture Trustee, 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, (C) expressly agrees by means of such supplemental
     indenture that all right, title and interest so conveyed or transferred
     shall be subject and subordinate to the rights of Noteholders, (D) 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 (E) expressly agrees by means of such supplemental indenture
     that such Person (or if a group of Persons, then one specified Person)
     shall make all filings, if any, with the Commission (and any other
     appropriate Person) required by the Exchange Act in connection with the
     Notes;

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

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

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

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

          (vi) the Issuer shall have delivered to the Indenture Trustee an
     Officer's Certificate and an Opinion of Counsel each stating that such
     conveyance or transfer and such supplemental indenture comply with this
     Article III and that all conditions precedent herein provided for
     relating to such transaction have been complied with (including any
     filing required by the Exchange Act).

     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 Notes immediately upon the delivery of
written notice to the Indenture Trustee stating that the Issuer is to be so
released.

                                      18

<PAGE>

     SECTION 3.12. No Other Business. The Issuer shall not engage in any
business other than financing, acquiring, owning and pledging the Receivables
in the manner contemplated by this Indenture and the Basic Documents and
activities incidental thereto.

     SECTION 3.13. No Borrowing. The Issuer shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
indebtedness except for the Notes and the Certificates.

     SECTION 3.14. Servicer's Obligations. The Issuer shall cause the Servicer
to comply with the Sale and Servicing Agreement, including Sections 3.9, 3.10,
3.11, 3.12, 3.13 and 4.9 and Article VI thereof.

     SECTION 3.15. Guarantees, Loans, Advances and Other Liabilities. Except
as contemplated by this Indenture and 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 3.16. Capital Expenditures. The Issuer shall not make any
expenditure (by long-term or operating lease or otherwise) for capital assets
(either realty or personalty).

     SECTION 3.17. 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 3.18. Restricted Payments. The Issuer shall not, directly or
indirectly, (i) make any distribution (by reduction of capital or otherwise),
whether in cash, property, securities or a combination thereof, to the Owner
Trustee or any owner of a beneficial interest in the Issuer or otherwise with
respect to any ownership or equity interest or security in or of the Issuer or
to the Servicer or the Administrator, (ii) redeem, purchase, retire or
otherwise acquire for value any such ownership or equity interest or security
or (iii) set aside or otherwise segregate any amounts for any such purpose;
provided, however, that the Issuer may make, or cause to be made, (x) payments
to the Servicer, the Administrator, the Owner Trustee, the Indenture Trustee,
the Noteholders and the Certificateholders as contemplated by, and to the
extent funds are available for such purpose under, this Indenture and the
other Basic Documents and (y) payments to the Indenture Trustee pursuant to
Section 2(a)(ii) of the Administration Agreement. The Issuer shall not,
directly or indirectly, make payments to or distributions from the Collection
Account or the Principal Distribution Account except in accordance with this
Indenture and the other Basic Documents.

     SECTION 3.19. Notice of Events of Default. The Issuer shall give the
Indenture Trustee and the Rating Agencies prompt written notice of each Event
of Default hereunder and of each default on the part of any party to the Sale
and Servicing Agreement with respect to any of the provisions thereof.

                                      19

<PAGE>

     SECTION 3.20. Removal of Administrator. For so long as any Notes are
Outstanding, the Issuer shall not remove the Administrator without cause
unless the Rating Agency Condition shall have been satisfied in connection
therewith.

                                  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 Noteholders to
receive payments of principal thereof and interest thereon, (iv) Sections 3.3,
3.4, 3.5, 3.8, 3.10, 3.12 and 3.13, (v) the rights and immunities of the
Indenture Trustee hereunder (including the rights of the Indenture Trustee
under Section 6.7) and the obligations of the Indenture Trustee under Section
4.3, 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, when:

               (A) either:

                    (1) all Notes theretofore authenticated and delivered
               (other than (i) Notes that have been destroyed, lost or stolen
               and that have been replaced or paid as provided in Section 2.6
               and (ii) Notes for whose payment money has theretofore been
               deposited in trust or segregated and held in trust by the
               Issuer and thereafter repaid to the Issuer or discharged from
               such trust, as provided in Section 3.3) have been delivered to
               the Indenture Trustee for cancellation; or

                    (2) all Notes not theretofore delivered to the Indenture
               Trustee for cancellation have become due and payable and the
               Issuer has irrevocably deposited or caused to be irrevocably
               deposited with the Indenture Trustee cash or direct obligations
               of or obligations guaranteed by the United States of America
               (which will mature prior to the date such amounts are payable),
               in trust for such purpose, in an amount sufficient without
               reinvestment to pay and discharge the entire indebtedness on
               such Notes not theretofore delivered to the Indenture Trustee
               for cancellation when due to the applicable Final Scheduled
               Payment Date or Prepayment Date (if Notes shall have been
               called for prepayment pursuant to Section 10.1), as the case
               may be, and all fees and other amounts due and payable to the
               Indenture Trustee;

                    (B) the Issuer has paid or caused to be paid all other
               sums payable hereunder and under any of the other Basic
               Documents by the Issuer;

                    (C) the Issuer has delivered to the Indenture Trustee an
               Officer's Certificate, an Opinion of Counsel and (if required
               by the TIA or the Indenture

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<PAGE>

               Trustee) an Independent Certificate from a firm of certified
               public accountants, each meeting the applicable requirements of
               Section 11.1(a) and, subject to Section 11.2, each stating that
               all conditions precedent herein provided for relating to the
               satisfaction and discharge of this Indenture have been complied
               with; and

                    (D) the Issuer has delivered to the Indenture Trustee an
               Opinion of Counsel to the effect that the satisfaction and
               discharge of the Notes pursuant to this Section 4.1 will not
               cause any Noteholder to be treated as having sold or exchanged
               any of its Notes for purposes of Section 1001 of the Code.

     Upon the satisfaction and discharge of the Indenture pursuant to this
Section 4.1, at the request of the Owner Trustee, the Indenture Trustee shall
deliver to the Owner Trustee a certificate of a Trustee Officer stating that
all Noteholders have been paid in full and stating whether, to the best
knowledge of such Trustee Officer, any claims remain against the Issuer in
respect of the Indenture and the Notes.

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

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

                                  ARTICLE V

                                   REMEDIES

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

          (i) default in the payment of any interest on any Note when the same
     becomes due and payable on a Payment Date, and such default shall
     continue for a period of five (5) days or more; or

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<PAGE>

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

          (iii) default in the observance or performance of any covenant or
     agreement of the Issuer made in this Indenture (other than a covenant or
     agreement, a default in the observance or performance of which is
     elsewhere in this Section 5.1 specifically dealt with) that materially
     and adversely affects the Noteholders and such default shall continue for
     a period of sixty (60) days, after there shall have been given, by
     registered or certified mail, to the Issuer by the Indenture Trustee or
     to the Issuer and the Indenture Trustee by the holders of Notes
     evidencing not less than 25% of the principal amount of the Notes, a
     written notice specifying such default and requiring it to be remedied
     and stating that such notice is a "Notice of Default" hereunder; or

          (iv) 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 Indenture Trust Estate in an involuntary case under any
     applicable federal or State bankruptcy, insolvency or other similar law
     now or hereafter in effect, or appointing a receiver, liquidator,
     assignee, custodian, trustee, sequestrator or similar official of the
     Issuer or for any substantial part of the Indenture Trust Estate, or
     ordering the winding-up or liquidation of the Issuer's affairs, and such
     decree or order shall remain unstayed and in effect for a period of sixty
     (60) consecutive days; or

          (v) 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
     Indenture Trust Estate, or the making by the Issuer of any general
     assignment for the benefit of creditors, or the failure by the Issuer
     generally to pay its debts as such debts become due, or the taking of any
     action by the Issuer in furtherance of any of the foregoing.

The Issuer shall deliver to the Indenture Trustee, within five (5) days after
the occurrence thereof, written notice in the form of an Officer's Certificate
of any event which with the giving of notice and the lapse of time would
become an Event of Default under clause (iii) above, 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 the Indenture Trustee or the holders of Notes evidencing not less than a
majority of the principal amount of the Notes 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 Noteholders), and upon any such declaration the
unpaid principal amount of such Notes, together with accrued and unpaid
interest thereon through the date of acceleration, shall become immediately
due and payable.

     (b) At any time after a declaration of acceleration of maturity has been
made and before a judgment or decree for payment of the amount due has been
obtained by the Indenture

                                      22

<PAGE>

Trustee as hereinafter provided in this Article V, the holders of Notes
evidencing not less than a majority of the principal amount of the Notes, by
written notice to the Issuer and the Indenture Trustee, may rescind and annul
such declaration and its consequences if:

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

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

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

          (ii) all Events of Default, other than the nonpayment of the
     principal of the Notes that has become due solely by such acceleration,
     have been cured or waived as provided in Section 5.12. No such rescission
     shall affect any subsequent default or impair any right consequent
     thereto.

     SECTION 5.3. Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee. (a) The Issuer covenants that if (i) there is an Event of
Default relating to the nonpayment of any interest on any Note when the same
becomes due and payable, and such Event of Default continues for a period of
five (5) days, or (ii) there is an Event of Default relating to the nonpayment
in the payment of the principal of or any installment of the principal of any
Note when the same becomes due and payable, the Issuer shall, upon demand of
the Indenture Trustee, pay to the Indenture Trustee, for the benefit of the
Noteholders, the whole amount then due and payable on such Notes for principal
and interest, with interest upon the overdue principal and, to the extent
payment at such rate of interest shall be legally enforceable, upon overdue
installments of interest at the applicable Note Interest Rate borne by the
Notes and in addition thereto such further amount as shall be sufficient to
cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Indenture Trustee
and its agents, attorneys and counsel.

     (b) In case the Issuer shall fail forthwith to pay such amounts upon such
demand, the Indenture Trustee, in its own name and as trustee of an express
trust, may institute a Proceeding for the collection of the sums so due and
unpaid, and may prosecute such Proceeding to judgment or final decree, and may
enforce the same against the Issuer or other obligor upon such Notes and
collect in the manner provided by law out of the property of the Issuer or
other obligor upon such Notes, wherever situated, the monies adjudged or
decreed to be payable.

     (c) If an Event of Default occurs and is continuing, the Indenture
Trustee, as more particularly provided in Section 5.4, in its discretion, may
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

                                      23

<PAGE>

power granted herein, or to enforce any other proper remedy or legal or
equitable right vested in the Indenture Trustee by this Indenture or by law.

     (d) In case there shall be pending, relative to the Issuer or any other
obligor upon the Notes or any Person having or claiming an ownership interest
in the Indenture Trust Estate, Proceedings under Title 11 of the United States
Code or any other applicable federal or State bankruptcy, insolvency or other
similar law, or in case a receiver, assignee or trustee in bankruptcy or
reorganization, liquidator, sequestrator or similar official shall have been
appointed for or taken possession of the Issuer or its property or such other
obligor or Person, or in case of any other comparable judicial Proceedings
relative to the Issuer or other obligor upon the Notes, or to the creditors or
property of the Issuer or such other obligor, 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 whole amount of
     principal and interest owing and unpaid in respect of the Notes and to
     file such other papers or documents as may be necessary or advisable in
     order to have the claims of the Indenture Trustee (including any claim
     for reasonable compensation to the Indenture Trustee and each predecessor
     Indenture Trustee, and their respective agents, attorneys and counsel,
     and for reimbursement of all expenses and liabilities incurred, and all
     advances and disbursements made, by the Indenture Trustee and each
     predecessor Indenture Trustee, except as a result of negligence or bad
     faith) and of the Noteholders allowed in such Proceedings;

          (ii) unless prohibited by applicable law and regulations, to vote on
     behalf of the Noteholders 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 pay 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 Noteholders allowed in any judicial proceedings
     relative to the Issuer, its creditors and its property;

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

                                      24

<PAGE>

Trustee, except as a result of negligence or bad faith, and any other amounts
due the Indenture Trustee pursuant to Section 6.7.

     (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 Noteholder 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 of the Notes or the production thereof in any trial or other
Proceedings relative thereto, and any such action or Proceedings instituted by
the Indenture Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment, subject to the payment of the
expenses, disbursements and compensation of the Indenture Trustee, each
predecessor Indenture Trustee and their respective agents, attorneys and
counsel, shall be for the ratable benefit of the Noteholders in respect of
which such judgment has been recovered.

     (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, the Indenture Trustee may, or at the direction of
Noteholders of Notes evidencing not less than a majority of the principal
amount of the Notes shall, do one or more of the following (subject to Section
5.5):

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

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

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

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

provided, however, the Indenture Trustee may not sell or otherwise liquidate
the Indenture Trust Estate unless:

                                      25

<PAGE>

               (A) the holders of Notes evidencing 100% of the principal
          amount of the Notes (excluding Notes held by the Seller, the
          Servicer or any of their Affiliates) consent thereto; or

               (B) the proceeds of such sale or liquidation are sufficient to
          pay in full the principal of and the accrued interest on the
          Outstanding Notes; or

               (C) if the Event of Default is of the type described in Section
          5.1(i) or (ii), the Indenture Trustee-

                    (1) determines (but shall have no obligation to make such
               determination) that the Indenture Trust Estate will not
               continue to provide sufficient funds for the payment of
               principal of and interest on the Notes as they would have
               become due if the Notes had not been declared due and payable;
               and

                    (2) the Indenture Trustee obtains the consent of holders
               of Notes evidencing not less than 66 2/3% of the principal
               amount of the Notes; or

               (D) with respect to an Event of Default described in Section
          5.1(iii):

                    (1) the holders of all Outstanding Notes and the
               Certificateholders of all Outstanding Certificates consent
               thereto; or

                    (2) the proceeds of such sale or liquidation are
               sufficient to pay in full the principal of and accrued interest
               on the Outstanding Notes and Outstanding Certificates.

     In determining such sufficiency or insufficiency with respect to clauses
(C)(1) and (D)(2) above, the Indenture Trustee may (at other than its own
expense), 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 Indenture
Trust Estate for such purpose.

     (b) Notwithstanding the provisions of Section 8.2 of this Indenture or
Section 4.6 of the Sale and Servicing Agreement, if the Indenture Trustee
collects any money or property (and other amounts including amounts held on
deposit in the Reserve Account) pursuant to this Article V, it shall pay out
the money or property in the following order of priority:

          (i) first, to the Indenture Trustee and the Owner Trustee for all
     amounts due for fees, expenses and indemnification under Section 6.7 of
     this Indenture, Article VII of the Trust Agreement and Section 6.2 of the
     Sale and Servicing Agreement, respectively, and not previously paid;

          (ii) second, to the Servicer for due and unpaid Servicing Fees;

                                      26

<PAGE>

          (iii) third, if an Event of Default specified in Section 5.1(i),
     (ii), (iv) or (v) has occurred, in the following order of priority:

               (A) first, to the Class A Noteholders, interest due and payable
          on the Class A Notes (including interest at the applicable Note
          Interest Rate on any overdue interest, to the extent lawful),
          provided that if there are not sufficient funds available to pay the
          entire amount of interest due and payable on the Class A Notes, the
          amounts available shall be applied to the payment of such interest
          on the Class A Notes on a pro rata basis;

               (B) second, to the holders of the Class A-1 Notes in reduction
          of principal until the principal amount of the Class A-1 Notes has
          been paid in full and then to the holders of the Class A-2 Notes,
          the Class A-3 Notes and the Class A-4 Notes on a pro rata basis in
          reduction of principal until the principal amount of such Class A
          Notes has been paid in full; and

               (C) third, to the Certificate Distribution Account, the sum of
          (x) accrued and unpaid interest on the Class B Certificates
          (together with interest at the Class B Rate on any overdue interest,
          to the extent lawful) and (y) the Outstanding Certificate Balance;

          (iv) fourth, if the only Event of Default that has occurred is the
     Event of Default specified in Section 5.1(iii), in the following order of
     priority:

               (A) to the Class A Noteholders, accrued and unpaid interest on
          the Class A Notes (together with interest on overdue interest at the
          applicable Note Interest Rate, to the extent lawful) provided that
          if there are not sufficient funds available to pay the entire amount
          of such interest, the amounts available shall be applied to the
          payment of such interest on the Class A Notes on a pro rata basis;

               (B) to the Noteholders, the Priority Note Principal Payment, if
          any, to be distributed in the same manner as described under Section
          8.2(d) of this Indenture;

               (C) to the Certificate Distribution Account, accrued and unpaid
          interest on the Class B Certificates (together with interest at the
          Class B Rate on any overdue interest, to the extent lawful);

               (D) to the holders of the Class A-1 Notes in reduction of
          principal until the principal amount of the Class A-1 Notes has been
          paid in full and then to the holders of the Class A-2 Notes, the
          Class A-3 Notes and the Class A-4 Notes on a pro rata basis in
          reduction of principal until the principal amount of such Class A
          Notes has been paid in full; and

               (E) to the Certificate Distribution Account for distribution to
          Class B Certificateholders in reduction of the Certificate Balance
          until the Certificate Balance is reduced to zero.

                                      27

<PAGE>

          (v) fifth, to the Depositor, any money or property remaining after
     payment in full of the amounts described in clauses (i)-(iv) of this
     Section 5.4(b).

The Indenture Trustee may fix a record date and payment date for any payment
to Noteholders pursuant to this Section 5.4. At least fifteen (15) days before
such record date, the Indenture Trustee shall mail to each Noteholder a notice
that states the record date, the payment date and the amount to be paid.

     (c) Upon a sale or other liquidation of the Receivables in the manner set
forth in Section 5.4(a), the Indenture Trustee shall provide reasonable prior
notice of such sale or liquidation to each Noteholder and Certificateholder. A
Noteholder or Certificateholder may submit a bid with respect to such sale.

     SECTION 5.5. Optional Preservation of the Receivables. If the Notes have
been declared to be due and payable under Section 5.2 following an Event of
Default, and such declaration and its consequences have not been rescinded and
annulled, the Indenture Trustee may, but need not, elect to maintain
possession of the Indenture Trust Estate and apply proceeds as if there had
been no declaration of acceleration; provided, however, that funds on deposit
in the Collection Account at the time the Indenture Trustee makes such
election or deposited therein during the Collection Period in which such
election is made (including funds, if any, deposited therein from the Reserve
Account) shall be applied in accordance with such declaration of acceleration
in the manner specified in Section 4.6(c) of the Sale and Servicing Agreement.
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 maintain possession of the Indenture Trust
Estate. In determining whether to maintain possession of the Indenture Trust
Estate, the Indenture Trustee may (at other than its own expense), 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 Indenture Trust Estate for such
purpose.

     SECTION 5.6. Limitation of Suits. No Noteholder 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:

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

     (b) the holders of Notes evidencing not less than 25% of the principal
amount of the Notes have made written request to the Indenture Trustee to
institute such Proceeding in respect of such Event of Default in its own name
as Indenture Trustee hereunder;

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

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

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<PAGE>

     (e) no direction inconsistent with such written request has been given to
the Indenture Trustee during such sixty-day period by the Noteholders of Notes
evidencing not less than a majority of the principal amount of the Notes.

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

     In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Noteholders,
each evidencing less than a majority of the principal amount of the Notes, the
Indenture Trustee shall act at the direction of the group of Noteholders
representing the greater principal amount of the Notes. If the Indenture
Trustee receives conflicting or inconsistent requests and indemnity from two
or more groups of Noteholders representing an equal principal amount of the
Notes, 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, any
Noteholder shall have the right, which is absolute and unconditional, to
receive payment of the principal of and interest, if any, on its Note on or
after the respective due dates thereof expressed in such Note or in this
Indenture (or, in the case of prepayment pursuant to Article X, on or after
the Prepayment Date) and to institute suit for the enforcement of any such
payment, and such right shall not be impaired without the consent of such
Noteholder.

     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 and respectively to their former positions hereunder, and
thereafter all rights and remedies of the Indenture Trustee and the
Noteholders shall continue as though no such Proceeding had been instituted.

     SECTION 5.9. 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 Noteholder to exercise any right or remedy accruing
upon any Default or Event of Default shall impair any such right or remedy or
constitute a waiver of any such

                                      29

<PAGE>

Default or Event of Default or any acquiescence therein. Every right and
remedy given by this Article V or by law to the Indenture Trustee or to the
Noteholders may be exercised from time to time, and as often as may be deemed
expedient, by the Indenture Trustee or by the Noteholders, as the case may be.

     SECTION 5.11. Control by Noteholders. The Noteholders of Notes evidencing
not less than a majority of the principal amount of the Notes Outstanding
shall have the right, subject to Section 6.2(f), to direct the time, method
and place of conducting any Proceeding for any remedy available to the
Indenture Trustee with respect to the Notes or exercising any trust or power
conferred on the Indenture Trustee; provided that:

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

     (b) subject to the express terms of Section 5.4, any direction to the
Indenture Trustee to sell or liquidate the Indenture Trust Estate shall be by
holders of Notes evidencing not less than 100% of the principal amount of the
Notes Outstanding;

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

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

Notwithstanding the rights of Noteholders set forth in this Section 5.11,
subject to Section 6.1, the Indenture Trustee need not take any action that it
determines might involve it in costs or expenses for which it would not be
adequately indemnified or expose it to personal liability or might materially
adversely affect or unduly prejudice the rights of any Noteholders not
consenting to such action.

     SECTION 5.12. Waiver of Past Defaults. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.2, the
holders of Notes evidencing not less than a majority of the principal amount
of the Notes Outstanding may waive any past Default or Event of Default and
its consequences except a Default (a) in the payment of principal of or
interest on any of the Notes or (b) in respect of a covenant or provision
hereof that cannot be amended, supplemented or modified without the consent of
each Noteholder. In the case of any such waiver, the Issuer, the Indenture
Trustee and the Noteholders shall be restored to their former positions and
rights hereunder, respectively; but no such waiver shall extend to any
subsequent or other Default or impair any right consequent thereto.

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

                                      30

<PAGE>

     SECTION 5.13. Undertaking for Costs. All parties to this Indenture agree,
and each Noteholder by such Noteholder's acceptance thereof shall be deemed to
have agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit
against the Indenture Trustee for any action taken, suffered or omitted by it
as Indenture Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section 5.13 shall not apply to (a) any suit instituted by
the Indenture Trustee, (b) any suit instituted by any Noteholder or group of
Noteholders, in each case holding in the aggregate more than 10% of the
principal amount of the Notes Outstanding or (c) any suit instituted by any
Noteholder for the enforcement of the payment of principal of or interest on
any Note on or after the respective due dates expressed in such Note and in
this Indenture.

     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 affect the covenants or the performance of this
Indenture, and the Issuer (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that
it shall not hinder, delay or impede the execution of any power herein granted
to the Indenture Trustee, but will suffer and permit the execution of every
such power as though no such law had been enacted.

     SECTION 5.15. Action on Notes. The Indenture Trustee's right to seek and
recover judgment on the Notes or under this Indenture shall not be affected by
the seeking, obtaining or application of any other relief under or with
respect to this Indenture. Neither the lien of this Indenture nor any rights
or remedies of the Indenture Trustee or the Noteholders shall be impaired by
the recovery of any judgment by the Indenture Trustee against the Issuer or by
the levy of any execution under such judgment upon any portion of the
Indenture Trust Estate or upon any of the assets of the Issuer. Any money or
property collected by the Indenture Trustee shall be applied in accordance
with Section 5.4(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 shall take all such lawful action as the
Indenture Trustee may request to compel or secure the performance and
observance by the Seller, the Depositor and the Servicer, as applicable, of
each of their obligations to the Issuer under or in connection with the Sale
and Servicing Agreement, or the performance and observance by the Seller of
each of its obligations to the Depositor under or in connection with the
Receivables Purchase Agreement, and to exercise any and all rights, remedies,
powers and privileges lawfully available to the Issuer under or in connection
with the Sale and Servicing Agreement or the Receivables Purchase Agreement to
the extent and in the manner directed by the Indenture Trustee, including the
transmission of notices of default on the part of the Seller, the Depositor or
the Servicer thereunder and the institution of legal or administrative actions
or proceedings to compel or secure performance by the Seller, the Depositor or
the Servicer of each of their obligations under the Receivables Purchase
Agreement and the Sale and Servicing Agreement.

                                      31

<PAGE>

     (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 Noteholders of
Notes evidencing not less than a majority of the principal amount of the Notes
shall, exercise all rights, remedies, powers, privileges and claims of the
Issuer against the Seller, the Depositor or the Servicer under or in
connection with the Receivables Purchase Agreement and the Sale and Servicing
Agreement, including the right or power to take any action to compel or secure
performance or observance by the Seller, the Depositor, the Servicer or the
Bank, as the case may be, of each of their obligations to the Issuer
thereunder and to give any consent, request, notice, direction, approval,
extension, or waiver under the Receivables Purchase Agreement and the Sale and
Servicing Agreement and any right of the Issuer to take such action shall be
suspended.

                                  ARTICLE VI

                             THE INDENTURE TRUSTEE

     SECTION 6.1. 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 and no
     implied covenants or obligations shall be read into this Indenture or the
     other Basic Documents against the Indenture Trustee; and

          (ii) in the absence of bad faith on its part, the Indenture Trustee
     may conclusively rely, as to the truth of the statements and the
     correctness of the opinions expressed therein, upon certificates or
     opinions furnished to the Indenture Trustee and, if required by the terms
     of this Indenture or the other Basic Documents, 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 the requirements of this Indenture.

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

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

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

          (iii) the Indenture Trustee shall not be liable with respect to any
     action it takes or omits to take in good faith at the direction of the
     Noteholders in accordance with the terms of this Indenture; and

                                      32

<PAGE>

          (iv) the Indenture Trustee shall have no duty (A) to see to any
     recording, filing, or depositing of this Indenture or any agreement
     referred to herein or any financing statement or continuation statement
     evidencing a security interest, or to see to the maintenance of any such
     recording or filing or depositing or to any re-recording, refiling or
     redepositing of any thereof, (B) to see to any insurance, (C) to see to
     the payment or discharge of any tax, assessment, or other governmental
     charge or any lien or encumbrance of any kind owing with respect to,
     assessed or levied against, any part of the Trust Estate other than as
     directed by the Servicer or the Administrator, in either case, from funds
     available in the Collection Account, (D) except as otherwise set forth in
     Section 6.1(b)(ii), to confirm or verify the contents of any reports or
     certificates of the Servicer delivered to the Indenture Trustee pursuant
     to this Indenture believed by the Indenture Trustee to be genuine and to
     have been signed or presented by the proper party or parties, or (E) to
     execute any certificates or other documents required pursuant to the
     Sarbanes-Oxley Act of 2002 or the rules and regulations promulgated
     thereunder.

     (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 Sale and 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
repayment of such funds or adequate indemnity against such risk or liability
is not reasonably assured to it, and none of the provisions contained in this
Indenture shall in any event require the Indenture Trustee to perform, or be
responsible for the manner of performance of, any of the obligations of the
Servicer under this Indenture except during such time, if any, as the
Indenture Trustee shall be the successor to, and be vested with the rights,
duties, powers and privileges of the Servicer in accordance with the terms of
this Indenture.

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

     (h) The Indenture Trustee shall not be charged with knowledge of any
Event of Default unless either (i) a Trustee Officer shall have actual
knowledge of such Event of Default or (ii) written notice of such Event of
Default shall have been given to the Indenture Trustee in accordance with the
provisions of this Indenture.

     SECTION 6.2. Rights of Indenture Trustee. (a) The Indenture Trustee may
rely and shall be protected in acting or refraining from acting upon any
resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture or other paper or document
believed by it to be genuine and to have been signed or presented by the
proper Person. The Indenture Trustee need not investigate any facts or matters
stated in any such document.

                                      33

<PAGE>

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

     (c) The Indenture Trustee may execute any of the trusts or powers
hereunder or under the Basic Documents or perform any duties hereunder or
thereunder 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 such action or omission by the
Indenture Trustee does not constitute willful misconduct, negligence or bad
faith.

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

     (f) The Indenture Trustee shall be under no obligation to exercise any of
the rights or powers vested in it by this Indenture or to institute, conduct
or defend any litigation hereunder or in relation hereto or to honor the
request or direction of any of the Noteholders pursuant to this Indenture
unless such Noteholders shall have offered to the Indenture Trustee reasonable
security or indemnity against the reasonable costs, expenses, disbursements,
advances and liabilities which might be incurred by it, its agents and its
counsel in compliance with such request or direction.

     (g) Any request or direction of the Issuer mentioned herein shall be
sufficiently evidenced by an Issuer Request.

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

     (i) The Indenture Trustee shall not be required to give any bond or
surety in respect of the execution of the Trust Estate created hereby or the
powers granted hereunder.

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

     SECTION 6.4. Indenture Trustee's Disclaimer. The Indenture Trustee (i)
shall not be responsible for, and makes no representation as to, the validity
or adequacy of this Indenture, the

                                      34

<PAGE>

Notes or any other Basic Document and (ii) shall not be accountable for the
Issuer's use of the proceeds from the Notes, or responsible for any statement
or omission of the Issuer in this Indenture or any other Basic Document or in
any document issued in connection with the sale of the Notes or in the Notes
(all of which shall be taken as statements of the Issuer) other than the
Indenture Trustee's certificate of authentication.

     SECTION 6.5. Notice of Defaults; Insolvency or Dissolution of Depositor
or the Seller. If a Default occurs and is continuing and if it is actually
known to a Trustee Officer of the Indenture Trustee, the Indenture Trustee
shall mail to each Noteholder notice of such Default within ninety (90) days
after it occurs. Except in the case of a Default in payment of principal of or
interest on any Note (including payments pursuant to the redemption provisions
of such Note), the Indenture Trustee may withhold the notice if and so long as
a committee of its Trustee Officers in good faith determines that withholding
the notice is in the interests of Noteholders.

     SECTION 6.6. Reports by Indenture Trustee to Noteholders. Upon delivery
to the Indenture Trustee by the Servicer of such information prepared by the
Servicer pursuant to Section 3.9 of the Sale and Servicing Agreement as may be
required to enable each Noteholder to prepare its federal and State income tax
returns, the Indenture Trustee shall deliver such information to the
Noteholders by mail, e-mail, courier, fax, or the Indenture Trustee's website
at www.jpmorgan.com/sfr.

     SECTION 6.7. Compensation and Indemnity. (a) The Issuer shall cause the
Administrator to pay to the Indenture Trustee from time to time reasonable
compensation for its services. The Indenture Trustee's compensation shall not
be limited by any law on compensation of a trustee of an express trust. The
Issuer shall cause the Administrator 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 Administrator to indemnify the Indenture Trustee,
its directors, officers and agents for, and to hold it harmless against, any
and all loss, liability or expense (including attorneys' fees and
disbursements) incurred by it in connection with the administration of this
trust and the performance of its duties hereunder, including the costs and
expenses of defending itself against any claim or liability in connection with
the exercise or performance of any of its powers or duties hereunder. The
Indenture Trustee shall notify the Issuer and the Administrator promptly of
any claim for which it may seek indemnity. Failure by the Indenture Trustee to
so notify the Issuer and the Administrator shall not relieve the Issuer or the
Administrator of its obligations hereunder. The Issuer shall cause the
Administrator to defend any such claim, and the Indenture Trustee may have
separate counsel and the Issuer shall cause the Administrator to pay the fees
and expenses of such counsel. Neither the Issuer nor the Administrator need
reimburse any expense or indemnity against any loss, liability or expense
incurred by the Indenture Trustee through the Indenture Trustee's own willful
misconduct, negligence or bad faith.

     (b) The Issuer's payment obligations to the Indenture Trustee pursuant to
this Section 6.7 shall survive the resignation or removal of the Indenture
Trustee and the discharge of this Indenture. When the Indenture Trustee incurs
expenses after the occurrence of a Default specified in Section 5.1(iv) or (v)
with respect to the Issuer, the expenses are intended to

                                      35

<PAGE>

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) No resignation or
removal of the Indenture Trustee, and no appointment of a successor Indenture
Trustee, shall become effective until the acceptance of appointment by the
successor Indenture Trustee pursuant to this Section 6.8 and payment in full
of all sums due to the Indenture Trustee pursuant to Section 6.7. The
Indenture Trustee may resign at any time by so notifying the Issuer. The
holders of Notes evidencing not less than a majority in principal amount of
the Notes may remove the Indenture Trustee without cause by so notifying the
Indenture Trustee and the Issuer and may appoint a successor Indenture
Trustee. The Administrator shall remove the Indenture Trustee if:

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

          (ii) an Insolvency Event occurs with respect to the Indenture
     Trustee;

          (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.

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

     (b) Any successor Indenture Trustee shall deliver a written acceptance of
its appointment to the retiring Indenture Trustee and to the Issuer.
Thereupon, if all sums due the retiring Indenture Trustee pursuant to Section
6.7 have been paid in full, 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. If all sums due the retiring Indenture Trustee
pursuant to Section 6.7 have been paid in full, the retiring Indenture Trustee
shall promptly transfer all property held by it as Indenture Trustee to the
successor Indenture Trustee.

     (c) If a successor Indenture Trustee does not take office within sixty
(60) days after the retiring Indenture Trustee resigns or is removed, the
retiring Indenture Trustee, the Issuer or the holders of Notes evidencing not
less than a majority in principal amount of the Notes may petition any court
of competent jurisdiction for the appointment of a successor Indenture
Trustee. If the Indenture Trustee fails to comply with Section 6.11, any
Noteholder who has been a bona fide Noteholder for at least six (6) months may
petition any court of competent jurisdiction for the removal of the Indenture
Trustee and the appointment of a successor Indenture Trustee.

     (d) Notwithstanding the replacement of the Indenture Trustee pursuant to
this Section 6.8, the obligations of the Issuer and the Administrator under
Section 6.7 shall continue for the benefit of the retiring Indenture Trustee.

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     SECTION 6.9. Successor Indenture Trustee by Merger. (a) If the Indenture
Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets to, another
corporation or banking association, the resulting, surviving or transferee
corporation or banking association without any further act shall be the
successor Indenture Trustee; provided that such corporation or banking
association shall be otherwise qualified and eligible under Section 6.11. The
Indenture Trustee shall provide the Rating Agencies with written notice of any
such transaction.

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

     SECTION 6.10. Appointment of Co-Indenture Trustee or Separate Indenture
Trustee. (a) Notwithstanding any other provisions of this Indenture, at any
time, for the purpose of meeting any legal requirement of any jurisdiction in
which any part of the Indenture Trust Estate may at the time be located, the
Indenture Trustee shall have the power and may execute and deliver an
instrument to appoint one or more Persons to act as a co-trustee or
co-trustees, or separate trustee or separate trustees, of all or any part of
the Trust, and to vest in such Person or Persons, in such capacity and for the
benefit of the Noteholders, such title to the Indenture Trust Estate, 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 shall not be 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 Indenture Trust Estate
     or any portion thereof in any such jurisdiction) shall be exercised and
     performed singly by such separate trustee or co-trustee, but solely at
     the direction of the Indenture Trustee;

                                      37
<PAGE>

          (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 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 or its parent 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 shall have a long-term debt rating of investment grade by
each of the Rating Agencies or shall otherwise be acceptable to each of the
Rating Agencies. The Indenture Trustee shall comply with TIA Section 310(b).

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

                                 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 to the
Indenture Trustee (a) not more than five (5) days after each Record Date, a
list, in such form as the Indenture Trustee may reasonably require, of the
names and addresses of the Noteholders as of such Record Date and (b) at such
other times as the Indenture Trustee may request in writing, within thirty
(30) days after receipt by the Issuer of any such request, a list of similar
form and content as of a date not

                                      38
<PAGE>

more than ten (10) days prior to the time such list is furnished; provided,
however, that (i) so long as the Indenture Trustee is the Note Registrar, no
such list shall be required to be furnished and (ii) no such list shall be
required to be furnished with respect to Noteholders of Book-Entry Notes.

     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 Noteholders contained
in the most recent list furnished to the Indenture Trustee as provided in
Section 7.1 and the names and addresses of Noteholders 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. Upon receipt by the Indenture Trustee of any request by three or more
Noteholders or by one or more holders of Notes evidencing not less than 25% of
the Notes Outstanding to receive a copy of the current list of Noteholders
(whether or not made pursuant to TIA Section 312(b)), the Indenture Trustee
shall promptly notify the Administrator thereof by providing to the
Administrator a copy of such request and a copy of the list of Noteholders
produced in response thereto.

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

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

          (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) and by rules and regulations prescribed from time to time
     by the Commission.

     (b) Unless the Issuer otherwise determines, the fiscal year of the Issuer
shall correspond to the calendar year.

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<PAGE>

     SECTION 7.4. Reports by Indenture Trustee. (a) If required by TIA Section
313(a), within sixty (60) days after each May 15, beginning with May 15, 2005,
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).

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

                                 ARTICLE VIII

                     ACCOUNTS, DISBURSEMENTS AND RELEASES

     SECTION 8.1. Collection of Money. Except as otherwise expressly provided
herein, the Indenture Trustee may demand payment or delivery of, and shall
receive and collect, directly and without intervention or assistance of any
fiscal agent or other intermediary, all money and other property payable to or
receivable by the Indenture Trustee pursuant to this Indenture and the Sale
and Servicing Agreement. The Indenture Trustee shall apply all such money
received by it as provided in this Indenture and the Sale and Servicing
Agreement. Except as otherwise expressly provided in this Indenture, if any
default occurs in the making of any payment or performance under any agreement
or instrument that is part of the Indenture Trust Estate, the Indenture
Trustee may take such action as may be appropriate to enforce such payment or
performance, including the institution and prosecution of appropriate
Proceedings. Any such action shall be without prejudice to any right to claim
a Default or Event of Default under this Indenture and any right to proceed
thereafter as provided in Article V.

     SECTION 8.2. Trust Accounts. (a) On or prior to the Closing Date, the
Issuer shall cause the Servicer to establish and maintain the Trust Accounts
as provided in Sections 4.1 and 4.7 of the Sale and Servicing Agreement.

     (b) On or before each Payment Date, the Servicer shall deposit all
Available Collections with respect to the Collection Period preceding such
Payment Date in the Collection Account as provided in Sections 4.2, 4.3, 4.4
and 4.5 of the Sale and Servicing Agreement. On or before each Payment Date,
all amounts required to be withdrawn from the Reserve Account and deposited in
the Collection Account pursuant to Section 4.5 of the Sale and Servicing
Agreement shall be withdrawn by the Indenture Trustee (based on the
information contained in the Servicer's Certificate delivered on or before the
related Determination Date pursuant to Section 3.9 of the Sale and Servicing
Agreement) from the Reserve Account and deposited to the Collection Account.

     (c) On each Payment Date, the Indenture Trustee (based on the information
contained in the Servicer's Certificate delivered on or before the related
Determination Date pursuant to Section 3.9 of the Sale and Servicing
Agreement) shall make the following withdrawals from the Collection Account
and make deposits, distributions and payments, to the extent of Available

                                      40
<PAGE>

Funds for such Payment Date (including funds, if any, deposited therein from
the Reserve Account), in the following order of priority:

          (i) first, to the Servicer, the Servicing Fee and all unpaid
     Servicing Fees from prior Collection Periods;

          (ii) second, to the Noteholders, the Accrued Class A Note Interest
     for such Payment Date; provided that if there are not sufficient funds
     available to pay the entire amount of the Accrued Class A Note Interest,
     the amounts available shall be applied to the payment of such interest on
     the Class A Notes on a pro rata basis;

          (iii) third, to the Noteholders, the Priority Note Principal Payment
     for such Payment Date, if any, to be distributed in the same priority as
     described under Section 8.2(d) of this Indenture;

          (iv) fourth, to the Certificate Distribution Account, the Accrued
     Class B Certificate Interest for such Payment Date;

          (v) fifth, to the Principal Distribution Account, the Regular
     Principal Distribution Amount (less any amounts distributed under clause
     (iii) above) for such Payment Date;

          (vi) sixth, if such Payment Date is a Final Scheduled Payment Date
     for any Class, the amount necessary to reduce the remaining principal
     amount of such Class to zero after giving effect to the amount, if any,
     to be applied on such Payment Date to such Class from funds deposited
     pursuant to clauses (iii) and (v) above;

          (vii) seventh, to the Reserve Account, the amount, if any, required
     to reinstate the amount in the Reserve Account up to the Specified
     Reserve Balance for such Payment Date;

          (viii) eighth, to the Indenture Trustee and the Owner Trustee, all
     amounts for fees, expenses and indemnification due under Section 6.7 of
     this Indenture and Section 7.1 of the Trust Agreement, respectively, and
     not previously paid; and

          (ix) ninth, to the Depositor, any remaining Available Funds for such
     Payment Date.

Notwithstanding the foregoing in this Section 8.2(c),

               (A) if the Notes have been accelerated after an Event of
          Default specified in Section 5.1(iii), then the Indenture Trustee
          shall instead apply Available Funds in the following order of
          priority:

                    (1) to the Indenture Trustee and the Owner Trustee, all
               amounts for fees, expenses and indemnification due under
               Section 6.7 of this Indenture and Section 7.1 of the Trust
               Agreement and not previously paid and to the Owner Trustee all
               amounts for fees, expenses and

                                      41

<PAGE>

               indemnification due under Section 6.2 of the Sale and Servicing
               Agreement and not previously paid;

                    (2) to the Servicer, the Servicing Fee and all unpaid
               Servicing Fees from prior Collection Periods;

                    (3) to the Noteholders, the Accrued Class A Note Interest
               for such Payment Date; provided that if there are not
               sufficient funds available to pay the entire amount of the
               Accrued Class A Note Interest, the amounts available shall be
               applied to the payment of such interest on the Class A Notes on
               a pro rata basis;

                    (4) to the Noteholders, the Priority Note Principal
               Payment, if any, for such Payment Date, if any, to be
               distributed in the same priority as described under Section
               8.2(d) of this Indenture;

                    (5) to the Certificate Distribution Account, the Accrued
               Class B Certificate Interest for such Payment Date;

                    (6) to the Principal Distribution Account, until the
               principal amount of the Notes has been paid in full;

                    (7) to the Certificate Distribution Account, the
               Certificate Balance of the Class B Certificates; and

                    (8) to the Depositor, any remaining Available Funds for
               such Payment Date; and

               (B) if the Notes have been accelerated after an Event of
          Default specified in Section 5.1(i), (ii), (iv) or (v), then the
          Indenture Trustee shall instead apply Available Funds in the
          following order of priority:

                    (1) to the Indenture Trustee and the Owner Trustee, all
               amounts due for fees, expenses and indemnification under
               Section 6.7 of this Indenture, Section 7.1 of the Trust
               Agreement and Section 6.2 of the Sale and Servicing Agreement,
               respectively, and not previously paid;

                    (2) to the Servicer, the Servicing Fee and all unpaid
               Servicing Fees from prior Collection Periods;

                    (3) to the Noteholders, the Accrued Class A Note Interest
               for such Payment Date; provided that if there are not
               sufficient funds available to pay the entire amount of the
               Accrued Class A Note Interest, the amounts available shall be
               applied to the payment of such interest on the Class A Notes on
               a pro rata basis;

                    (4) to the Principal Distribution Account, until the
               principal amount of the Notes has been paid in full;

                                      42

<PAGE>

                    (5) to the Certificate Distribution Account, the sum of
               the Accrued Class B Certificate Interest for such Payment Date
               and the Certificate Balance of the Class B Certificates; and

                    (6) to the Depositor, any remaining Available Funds for
               such Payment Date.

     (d) If the Notes have not been accelerated because of an Event of
Default, on each Payment Date, the Indenture Trustee (based on the information
contained in the Servicer's Certificate delivered on or before the related
Determination Date pursuant to Section 3.9 of the Sale and Servicing
Agreement) shall withdraw the funds deposited in the Principal Distribution
Account on such Payment Date and make distributions and payments in the
following order of priority:

          (i) first, to the holders of the Class A-1 Notes on a pro rata basis
     in reduction of principal until the principal amount of the Class A-1
     Notes has been paid in full;

          (ii) second, to the holders of the Class A-2 Notes on a pro rata
     basis in reduction of principal until the principal amount of the Class
     A-2 Notes has been paid in full;

          (iii) third, to the holders of the Class A-3 Notes on a pro rata
     basis in reduction of principal until the principal amount of the Class
     A-3 Notes have been paid in full;

          (iv) fourth, to the holders of the Class A-4 Notes on a pro rata
     basis in reduction of principal until the principal amount of the Class
     A-4 Notes have been paid in full; and

          (v) fifth, to the Certificate Distribution Account in reduction of
     the Certificate Balance of the Class B Certificates until the Certificate
     Balance of the Class B Certificates has been reduced to zero.

Any funds remaining on deposit in the Principal Distribution Account shall be
paid to the Indenture Trustee and the Owner Trustee to the extent, if any, of
amounts due to them under the Sale and Servicing Agreement that are unpaid and
then to the Depositor.

     Notwithstanding the foregoing in this Section 8.2(d), if the Notes have
been accelerated after an Event of Default, then the Indenture Trustee shall
(based on the information contained in the Servicer's Certificate delivered on
or before the related Determination Date pursuant to Section 3.9 of the Sale
and Servicing Agreement) withdraw the funds deposited in the Principal
Distribution Account on each Payment Date and pay them, first, to the holders
of the Class A-1 Notes until the principal amount of the Class A-1 Notes have
been paid in full and then to the holders of the Class A-2 Notes, Class A-3
Notes and Class A-4 Notes on a pro rata basis in reduction of principal until
the principal amount of such Notes has been paid in full.

     SECTION 8.3. General Provisions Regarding Accounts. (a) So long as no
Default or Event of Default shall have occurred and be continuing, all or a
portion of the funds in the Collection Account and the Reserve Account shall
be invested by the Indenture Trustee at the

                                      43

<PAGE>

written direction of the Servicer, in the case of the Collection Account, and
at the written direction of the Depositor, in the case of the Reserve Account,
in Permitted Investments as provided in Sections 4.1 and 4.7 of the Sale and
Servicing Agreement. All income or other gain (net of losses and investment
expenses) from investments of monies deposited in the Collection Account shall
be withdrawn by the Indenture Trustee from such accounts and distributed as
provided in Section 4.1 of the Sale and Servicing Agreement. Amounts in the
Reserve Account (including net income and gain) shall be applied as provided
in Section 4.7 of the Sale and Servicing Agreement. The Servicer or the
Depositor as applicable, shall not direct the Indenture Trustee to make any
investment of any funds or to sell any investment held in any of the Trust
Accounts unless the security interest Granted and perfected in such account
will continue to be perfected in such investment or the proceeds of such sale,
in either case without any further action by any Person, and, in connection
with any direction to the Indenture Trustee to make any such investment or
sale, if requested by the Indenture Trustee, the Issuer shall deliver to the
Indenture Trustee an Opinion of Counsel, acceptable to the Indenture Trustee,
to such effect.

     (b) 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 Trust Accounts
resulting from any loss on any Permitted Investment included therein, except
for losses attributable to the Indenture Trustee's failure to make payments on
such Permitted Investments issued by the Indenture Trustee, in its commercial
capacity as principal obligor and not as trustee, in accordance with their
terms.

     (c) If (i) the Servicer or the Depositor, as applicable, shall have
failed to give investment directions for any funds on deposit in the
Collection Account or the Reserve Account to the Indenture Trustee or (ii) to
the actual knowledge of a Trustee Officer of the Indenture Trustee, a Default
or Event of Default shall have occurred and be continuing with respect to the
Notes but the Notes shall not have been declared due and payable pursuant to
Section 5.2 or (iii) if such Notes shall have been declared due and payable
following an Event of Default, amounts collected or receivable from the
Indenture Trust Estate are being applied in accordance with Section 5.4 as if
there had not been such a declaration, then the Indenture Trustee shall, to
the fullest extent practicable, retain funds in the Collection Account or the
Reserve Account, as the case may be, uninvested.

     SECTION 8.4. Release of Indenture Trust Estate. (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 from the lien of this Indenture, or
convey the Indenture Trustee's interest in the same, in a manner and under
circumstances that are not inconsistent with the provisions of this Indenture.
No party relying upon an instrument executed by the Indenture Trustee as
provided in this Article 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 the Indenture Trustee pursuant to Section 6.7
have been paid in full, release any remaining portion of the Indenture Trust
Estate that secured the Notes from the lien of this Indenture and release to
the Issuer or any other Person entitled thereto any funds then on deposit in
the Trust Accounts. The Indenture Trustee shall release property from the lien
of this Indenture pursuant to this Section 8.4(b) only upon receipt of an
Issuer Request accompanied by

                                      44

<PAGE>

an Officer's Certificate, an Opinion of Counsel and (if required by the TIA)
Independent Certificates in accordance with TIA Sections 314(c) and 314(d)(1)
meeting the applicable requirements of Section 11.1.

     (c) Each Noteholder or Note Owner, by its acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, acknowledges that from
time to time the Indenture Trustee shall release the lien of this Indenture on
any Receivable to be sold to (i) the Depositor in accordance with Section 2.3
of the Sale and Servicing Agreement and (ii) to the Servicer in accordance
with Section 3.7 of the Sale and Servicing Agreement.

     SECTION 8.5. Opinion of Counsel. The Indenture Trustee shall receive at
least seven (7) 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, except in connection with any
action contemplated by Section 8.4(c), as a condition to such action, an
Opinion of Counsel, in form and substance satisfactory to the Indenture
Trustee, stating the legal effect of any such action, outlining the steps
required to complete the same, and concluding that all conditions precedent to
the taking of such action have been complied with and such action will not
materially and adversely impair the security for the Notes or the rights of
the Noteholders in contravention of the provisions of this Indenture;
provided, however, that such Opinion of Counsel shall not be required to
express an opinion as to the fair value of the Indenture Trust Estate. Counsel
rendering any such opinion may rely, without independent investigation, on the
accuracy and validity of any certificate or other instrument delivered to the
Indenture Trustee in connection with any such action.

                                  ARTICLE IX

                            SUPPLEMENTAL INDENTURES

     SECTION 9.1. Supplemental Indentures Without Consent of Noteholders. (a)
Without the consent of the Noteholders but with prior notice to the Rating
Agencies, the Issuer and the Indenture Trustee, when authorized by an Issuer
Order, at any time and from time to time, may enter into one or more
indentures supplemental hereto (which shall conform to the provisions of the
Trust Indenture Act as in force at the date of the execution thereof), in form
satisfactory to the Indenture Trustee, for any of the following purposes:

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

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

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

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<PAGE>

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

          (v) to cure any ambiguity, to correct or supplement any provision
     herein or in any supplemental indenture that may be inconsistent with any
     other provision herein or in any supplemental indenture or to make any
     other provisions with respect to matters or questions arising under this
     Indenture or under any supplemental indenture which shall not be
     inconsistent with the provisions of the Indenture; provided that such
     action shall not materially adversely affect the interests of the
     Noteholders;

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

          (vii) to modify, eliminate or add to the provisions of this
     Indenture to such extent as shall be necessary to affect 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.

     With respect to (iv) above, prior to the execution of such supplemental
indenture, the Rating Agency Condition shall have been satisfied.

     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, enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to, or changing
in any manner or eliminating any of the provisions of, this Indenture or of
modifying in any manner (other than the modifications set forth in Section
9.2) the rights of the Noteholders under this Indenture; provided, however,
that (i) such action shall not, as evidenced by an Opinion of Counsel,
adversely affect in any material respect the interests of any Noteholder, (ii)
the Rating Agency Condition shall have been satisfied with respect to such
action and (iii) such action shall not, as evidenced by an Opinion of Counsel,
cause the Issuer to be characterized for federal or any then Applicable Tax
State income tax purposes as an association taxable as a corporation or
otherwise have any material adverse impact on the federal or any then
Applicable Tax State income taxation of any Notes Outstanding or Outstanding
Certificates or any Noteholder or Certificateholder.

     SECTION 9.2. Supplemental Indentures with Consent of Noteholders. The
Issuer and the Indenture Trustee, when authorized by an Issuer Order, also
may, with prior notice to the Rating Agencies, enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to, or
changing in any manner or eliminating any of the provisions of, this Indenture
or modifying in any manner the rights of the Noteholders under this Indenture;
provided, however, that (i) the Rating Agency Condition shall have been
satisfied with respect to

                                      46

<PAGE>

such action and (ii) such action shall not, as evidenced by an Opinion of
Counsel, cause the Issuer to be characterized for federal or any then
Applicable Tax State income tax purposes as an association taxable as a
corporation or otherwise have any material adverse impact on the federal or
any then Applicable Tax State income taxation of any Notes Outstanding or
Outstanding Certificates or any Noteholder or Certificateholder, and (iii) (x)
such action shall not, as evidenced by an Opinion of Counsel, adversely affect
in any material respect the interests of any Noteholder, with respect to
supplemental indentures relating to matters other than those specified in
clause (y) below or (y) the Noteholders of each Outstanding Note affected
thereby shall have consented thereto, with respect to any supplemental
indenture which would:

          (i) modify or alter provisions of this Section 9.2;

          (ii) change the Final Scheduled Payment Date or the date of payment
     of any installment of principal of or interest on any Note, or reduce the
     principal amount thereof, the interest rate thereon or the Prepayment
     Price with respect thereto, change the provisions of this Indenture
     relating to the application of collections on, or the proceeds of the
     sale of, the Indenture Trust Estate to payment of principal of or
     interest on the Notes, or change any place of payment where, or the coin
     or currency in which, any Note or the interest thereon is payable, or
     impair the right to institute suit for the enforcement of the provisions
     of this Indenture 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 Prepayment Date);

          (iii) reduce the percentage of the principal amount of the Notes
     Outstanding, the consent of the Noteholders of which is required for any
     such supplemental indenture, or the consent of the Noteholders of which
     is required for any waiver of compliance with certain provisions of this
     Indenture or certain Defaults or Events of Default hereunder and their
     consequences provided for in this Indenture;

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

          (v) reduce the percentage of the principal amount of the Notes
     Outstanding required to direct or consent to a sale or liquidation by the
     Indenture Trustee of the Indenture Trust Estate pursuant to Section 5.4
     if the proceeds of such sale or liquidation would be insufficient to pay
     the principal amount and accrued but unpaid interest on the Notes and/or
     the Certificates, as applicable;

          (vi) modify any provision of this Indenture specifying a percentage
     of the aggregate principal amount of the Notes necessary to amend this
     Indenture or the other Basic Documents except to increase any percentage
     specified herein or to provide that certain additional provisions of this
     Indenture or the other Basic Documents cannot be modified or waived
     without the consent of the holder of each Outstanding Note affected
     thereby;

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

          (viii) permit the creation of any lien ranking prior to or on a
     parity with the lien of this Indenture with respect to any part of the
     Indenture Trust Estate or, except as otherwise permitted or contemplated
     herein, terminate the lien of this Indenture on any such collateral at
     any time subject hereto or deprive any Noteholder of the security
     provided by the lien of this Indenture.

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

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

     Promptly after the execution by the Issuer and the Indenture Trustee of
any supplemental indenture pursuant to this Section 9.2, the Indenture Trustee
shall mail to the Noteholders of the Notes to which such amendment or
supplemental indenture relates a notice setting forth in general terms the
substance of such supplemental indenture. Any failure of the Indenture Trustee
to mail such notice, or any defect therein, shall not, however, in any way
impair or affect the validity of any such supplemental indenture.

     SECTION 9.3. Execution of Supplemental Indentures. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the modification thereby of the trusts created
by this Indenture, the Indenture Trustee shall be entitled to receive, and
subject to Sections 6.1 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 the execution and delivery of such supplemental indenture 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 shall be deemed to be modified and amended in accordance therewith with
respect to the Notes affected thereby, and the respective rights, limitations
of rights, obligations, duties, liabilities and immunities under this
Indenture of the Indenture Trustee, the Issuer 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

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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 Trust Indenture Act as then in
effect so long as this Indenture shall then be qualified under the Trust
Indenture Act.

     SECTION 9.6. Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and if required by the Indenture Trustee
shall, bear a notation in form approved by the Indenture Trustee as to any
matter provided for in such supplemental indenture. If the Issuer or the
Indenture Trustee shall so determine, new Notes so modified as to conform, in
the opinion of the Indenture Trustee and the Issuer, to any such supplemental
indenture may be prepared and executed by the Issuer and authenticated and
delivered by the Indenture Trustee in exchange for Outstanding Notes.

                                  ARTICLE X

                                  PREPAYMENT

     SECTION 10.1. Prepayment. The Class A Notes are subject to prepayment on
any Payment Date on which the Servicer exercises its option to purchase the
assets of the Issuer pursuant to Section 8.1 of the Sale and Servicing
Agreement, and the amount paid by the Servicer shall be treated as collections
of Receivables and applied to pay the unpaid principal amount of the Notes and
the Certificate Balance of the Certificates plus accrued and unpaid interest
thereon. If the Notes are to be prepaid pursuant to this Section 10.1, the
Servicer or the Issuer shall furnish notice of such election to the Indenture
Trustee and the Rating Agencies not later than forty (40) days prior to the
Prepayment Date (and the Indenture Trustee shall promptly furnish notice to
the Noteholders) and the Servicer or the Issuer shall deposit by 10:00 a.m.
(New York City time) on the Prepayment Date with the Indenture Trustee in the
Collection Account the Prepayment Price of the Notes, whereupon all Notes
shall be due and payable on the Prepayment Date.

     SECTION 10.2. Form of Prepayment Notice. Notice of prepayment under
Section 10.1 shall be given by the Indenture Trustee by first-class mail,
postage prepaid, or by facsimile mailed or transmitted promptly following
receipt of notice from the Issuer or Servicer pursuant to Section 10.1, but
not later than thirty (30) days prior to the applicable Prepayment Date, to
each Noteholder as of the close of business on the Record Date preceding the
applicable Prepayment Date, at such Noteholder's address or facsimile number
appearing in the Note Register.

     All notices of prepayment shall state:

          (i) the Prepayment Date;

          (ii) the Prepayment Price;

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          (iii) the place where such Notes are to be surrendered for payment
     of the Prepayment Price (which shall be the office or agency of the
     Issuer to be maintained as provided in Section 3.2); and

          (iv) that on the Prepayment Date, the Prepayment Price will become
     due and payable upon each such Note and that interest thereon shall cease
     to accrue for and after said date.

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

     SECTION 10.3. Notes Payable on Prepayment Date. The Notes shall,
following notice of prepayment as required by Section 10.2, shall on the
Prepayment Date become due and payable at the Prepayment Price and (unless the
Issuer shall default in the payment of the Prepayment Price) no interest shall
accrue on the Prepayment Price for any period after the date to which accrued
interest is calculated for purposes of calculating the Prepayment 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:

               (A) 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;

               (B) 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;

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

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

     (b) (i) Prior to the deposit of any Collateral or other property or
securities with the Indenture Trustee that is to be made the basis for the
release of any property or securities subject to the lien of this Indenture,
the Issuer shall, in addition to any obligation imposed in Section 11.1(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 ninety (90) days of such deposit) to
the Issuer of the Collateral or other property or securities to be so
deposited.

          (ii) Whenever the Issuer is required to furnish to the Indenture
     Trustee an Officer's Certificate certifying or stating the opinion of any
     signer thereof as to the matters described in clause (i) above, the
     Issuer shall also deliver to the Indenture Trustee an Independent
     Certificate as to the same matters, if the fair value to the Issuer of
     the securities to be so deposited and of all other such securities made
     the basis of any such withdrawal or release since the commencement of the
     then-current fiscal year of the Issuer, as set forth in the certificates
     delivered pursuant to clause (i) above and this clause (ii), is ten
     percent (10%) or more of the principal amount of the Notes Outstanding,
     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 (1%) of the principal amount of the Notes Outstanding.

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

          (iv) Whenever the Issuer is required to furnish to the Indenture
     Trustee an Officer's Certificate certifying or stating the opinion of any
     signer thereof as to the matters described in clause (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 property as contemplated
     by clause (v) below or securities released from the lien of this
     Indenture since the commencement of the then-current calendar year, as
     set forth in the certificates required by clause (iii) above and this
     clause (iv), equals ten percent (10%) or more of the principal amount of
     the Notes Outstanding, 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 (1%) of the principal amount of the Notes
     Outstanding.

          (v) Notwithstanding Section 2.10 or any other provisions of this
     Section 11.1, the Issuer may, without compliance with the requirements of
     the other provisions of this Section 11.1, (A) collect, liquidate, sell
     or otherwise dispose of Receivables and Financed Vehicles as and to the
     extent permitted or required by the Basic Documents and (B) make

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cash payments out of the Trust Accounts as and to the extent permitted or
required by the Basic Documents.

     SECTION 11.2. Form of Documents Delivered to Indenture Trustee. (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 such officer's
certificate or opinion is based are erroneous. Any such certificate of an
Authorized Officer or opinion of counsel may be based, insofar as it relates
to factual matters, upon a certificate or opinion of, or representations by,
an officer or officers of the Servicer, the Depositor, the Seller, the
Administrator or the Issuer, stating that the information with respect to such
factual matters is in the possession of the Servicer, the Depositor, the
Seller, the Administrator or the Issuer, 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 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

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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 Noteholder of any Notes shall bind the
Noteholder 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 shall be in writing and if such request, demand, authorization,
direction, notice, consent, waiver or Act of Noteholders is to be made upon,
given or furnished to or filed with:

          (i) the Indenture Trustee by any Noteholder, the Servicer, the
     Administrator or the Issuer shall be sufficient for every purpose
     hereunder if made, given, furnished or filed in writing to or with the
     Indenture Trustee at its Corporate Trust office; or

          (ii) the Issuer by the Indenture Trustee or by any Noteholder shall
     be sufficient for every purpose hereunder if in writing and mailed
     first-class, postage prepaid to the Issuer addressed to: USAA Auto Owner
     Trust 2005-1, in care of Wachovia Bank of Delaware, National Association,
     300 Delaware Avenue, Wilmington, DE 19801, with a copy to the
     Administrator at 10750 McDermott Freeway, San Antonio, TX 78288,
     Attention: Secretary, or at any other address previously furnished in
     writing to the Indenture Trustee by the Issuer or the Administrator. The
     Issuer shall promptly transmit any notice received by it from the
     Noteholders to the Indenture Trustee.

     Notices required to be given to the Rating Agencies by the Issuer, the
Indenture Trustee or the Owner Trustee shall be in writing, personally
delivered, telecopied or mailed by certified mail, return receipt requested,
to (i) in the case of Moody's, at the following address: Moody's Investors
Service, Inc., ABS Monitoring Department, 99 Church Street, New York, New York
10007 and (ii) in case of Standard & Poor's, at the following address:
Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies,
Inc., 55 Water Street, 40th Floor, New York, New York 10041, Attention: Asset
Backed Surveillance Department.

     SECTION 11.5. Notices to Noteholders; Waiver. (a) Where this Indenture
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class, postage prepaid to each Noteholder affected by such
event, at his address as it appears on the Note Register, not later than the
latest date, and not earlier than the earliest date, prescribed for the giving
of such notice. In any case where notice to Noteholders is given by mail,
neither the failure to mail such notice

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<PAGE>

nor any defect in any notice so mailed to any particular Noteholder shall
affect the sufficiency of such notice with respect to other Noteholders, and
any notice that is mailed in the manner herein provided shall conclusively be
presumed to have been duly given.

     (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 to Noteholders when such notice is required to be
given pursuant to any provision of this Indenture, then any manner of giving
such notice as shall be satisfactory to the Indenture Trustee shall be deemed
to be a sufficient giving of such notice.

     (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 a Default
or 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 Noteholder providing for a method
of payment, or notice by the Indenture Trustee or any Note Paying Agent to
such Noteholder, that is different from the methods 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. If any provision hereof
limits, qualifies or conflicts with another provision hereof that is required
or deemed to be included in this Indenture by any of the provisions of the
Trust Indenture Act, such required or deemed provision shall control.

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

     SECTION 11.8. 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. All covenants and agreements in
this Indenture and the Notes by the Issuer shall bind its successors and
assigns, whether so expressed or not. All agreements of the Indenture Trustee
in this Indenture shall bind its successors, co-trustees and agents.

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     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, and the Noteholders, and any other
party secured hereunder, and any other Person with an ownership interest in
any part of the Indenture Trust Estate, any benefit or any legal or equitable
right, remedy or claim under this Indenture.

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

     SECTION 11.13. GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS
CONFLICTS OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     SECTION 11.14. Counterparts. This Indenture may be executed in any number
of counterparts, each of which so executed 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 shall be 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. Trust Obligation. 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 their individual
capacities, (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, 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 installment or call
owing to such entity. For all purposes

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<PAGE>

of this Indenture, in the performance of any duties or obligations of the
Issuer hereunder, the Owner Trustee shall be subject to, and entitled to the
benefits of, the terms and provisions of Article VI and VII of the Trust
Agreement.

     SECTION 11.17. No Petition. The Indenture Trustee, by entering into this
Indenture, and each Noteholder or Note Owner, by accepting a Note or, in the
case of a Note Owner, a beneficial interest in a Note, hereby covenant and
agree that prior to the end of the period that is one year and one day after
there has been paid in full all debt issued by any securitization vehicle in
respect of which the Seller or the Depositor holds any interest, they will not
institute against the Issuer, or join in, or assist or encourage others to
institute any institution against the Issuer of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or State bankruptcy or similar law
in connection with any obligations relating to the Notes, this Indenture or
any of the other Basic Documents.

     SECTION 11.18. Subordination Agreement. Each Class A Noteholder, by
accepting a Class A Note, hereby covenants and agrees that, to the extent it
is deemed to have any interest in any assets of the Seller or the Depositor,
or a securitization vehicle (other than the Trust) related to the Seller or
the Depositor, dedicated to other debt obligations of the Seller or the
Depositor or debt obligations of any other securitization vehicle (other than
the Trust) related to the Seller or the Depositor, its interest in those
assets is subordinate to claims or rights of such other debtholders to those
other assets. Furthermore, each Class A Noteholder, by accepting a Class A
Note, hereby covenants and agrees that such agreement constitutes a
subordination agreement for purposes of Section 510(a) of the Bankruptcy Code.

     SECTION 11.19. No Recourse. Notwithstanding any provisions herein to the
contrary, all of the obligations of the Issuer under or in connection with the
Class A Notes and this Indenture are nonrecourse obligations of the Issuer
payable solely from the Collateral and following realization of the Collateral
and its reduction to zero, any claims of the Class A Noteholders and the
Indenture Trustee (other than in respect of Section 6.7) against the Issuer
shall be extinguished and shall not thereafter revive. It is understood that
the foregoing provisions of this Section 11.19 shall not (i) prevent recourse
to the Collateral for the sums due or to become due under any security,
instrument or agreement which is part of the Collateral or (ii) constitute a
waiver, release or discharge of any indebtedness or obligation evidenced by
the Class A Notes or secured by this Indenture (to the extent it relates to
the obligation to make payments on the Class A Notes) until such Collateral
has been realized and reduced to zero, whereupon any Outstanding indebtedness
or obligation in respect of the Class A Notes shall be extinguished and shall
not thereafter revive. It is further understood that the foregoing provisions
of this Section 11.19 shall not limit the right of any Person to name the
Issuer as a party defendant in any Proceeding or in the exercise of any other
remedy under the Class A Notes or this Indenture, so long as no judgment in
the nature of a deficiency judgement shall be asked for or (if obtained)
enforced against any such Person or entity.

     SECTION 11.20. Inspection. The Issuer agrees that, with reasonable prior
notice, it will permit any representative of the Indenture Trustee, during the
Issuer's normal business hours, to examine all the books of account, records,
reports and other papers of the Issuer, to make copies and extracts therefrom,
to cause 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,

                                      56

<PAGE>

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.

                                      57

<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.

                     USAA AUTO OWNER TRUST 2005-1

                     By:      Wachovia Bank of Delaware, National
                              Association, not in its individual
                              capacity but solely as Owner Trustee of
                              USAA Auto Owner Trust 2005-1

                              By: /s/ Steven A. Finklea
                                 ----------------------------------------
                              Name:  Steven A. Finklea, CCTS
                              Title:  Vice President

                     JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,
                     not in its individual capacity but solely as Indenture
                     Trustee

                             By:  /s/ Aranka R. Paul
                                 ----------------------------------
                             Name:   Aranka R. Paul
                             Title:  Assistant Vice President

<PAGE>

                                  EXHIBIT A-1

                            FORM OF CLASS A-1 NOTE

     [FOR BOOK ENTRY NOTES] [UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
("DTC"), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

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

REGISTERED                                   $229,000,000
No. A-1-__                                   CUSIP NO. 903278BS7
                         USAA AUTO OWNER TRUST 2005-1

                     CLASS A-1 3.0272% ASSET BACKED NOTES

     USAA Auto Owner Trust 2005-1, a statutory trust organized and existing
under the laws of the State of Delaware (herein referred to as the "Issuer"),
for value received, hereby promises to pay to CEDE & CO., or registered
assigns, the principal sum of _______________ dollars payable on each Payment
Date in an amount equal to the result obtained by multiplying (i) a fraction
the numerator of which is $___________ (the original face amount of this Note)
and the denominator of which is $229,000,000 by (ii) the aggregate amount, if
any, payable to holders of Class A-1 Notes on such Payment Date from the
Principal Distribution Account or otherwise in respect of principal on the
Class A-1 Notes pursuant to Section 3.1 of the Indenture dated as of March 15,
2005 (as from time to time amended, supplemented or otherwise modified and in
effect, the "Indenture"), between the Issuer and JPMorgan Chase Bank, National
Association, as Indenture Trustee (in such capacity the "Indenture Trustee");
provided, however, that the entire unpaid principal amount of this Note shall
be due and payable on the March 2006 Payment Date (the "Class A-1 Final
Scheduled Payment Date"). Capitalized terms used but not defined herein are
defined in Article I of the Indenture, which also contains rules as to
construction that shall be applicable herein.

     The Issuer shall pay interest on this Note at the rate per annum shown
above on each Payment Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note Outstanding on the
preceding Payment Date or the Closing Date in the case of the first Payment
Date (after giving effect to all payments of principal made on such

                                    A-1-1

<PAGE>

preceding Payment Date), subject to certain limitations contained in Section
3.1 of the Indenture. Interest on this Note will accrue for each Payment Date
from and including the previous Payment Date on which interest has been paid
(or, in the case of the initial Payment Date, from the Closing Date) to but
excluding such Payment Date. Interest will be computed on the basis of actual
days elapsed and a 360-day year. 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 as at the time of payment is legal
tender for payment of public and private debts. All payments made by the
Issuer with respect to this Note shall be applied first to interest due and
payable on this Note as provided above and then to the unpaid principal of
this Note.

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

     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.

     [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

                                    A-1-2

<PAGE>

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

Date: March 15, 2005

                       USAA AUTO OWNER TRUST 2005-1

                       By:      Wachovia Bank of Delaware, National
                                Association, not in its individual
                                capacity but solely as Owner Trustee of
                                USAA Auto Owner Trust 2005-1

                                By:
                                      ----------------------------------
                                              Authorized Officer

               INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

     This is one of the Class A-1 Notes designated above and referred to in
the within-mentioned Indenture.

Date: March 15, 2005

                       JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,
                       not in its individual capacity but solely as Indenture
                       Trustee

                               By:
                                      -------------------------
                                          Authorized Officer

                                    A-1-3

<PAGE>

                               [REVERSE OF NOTE]

     This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class A-1 3.0272% Asset Backed Notes (the "Class A-1 Notes")
which, together with the Issuer's Class A-2 3.55% Asset Backed Notes (the
"Class A-2 Notes"), Class A-3 3.90% Asset Backed Notes (the "Class A-3 Notes")
and Class A-4 4.13% Asset Backed Notes (the "Class A-4 Notes" and, together
with the Class A-1 Notes, the Class A-2 Notes and the Class A-3 Notes, the
"Class A Notes" or the "Notes"), are issued under the Indenture, to which
Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights and obligations thereunder of the Issuer,
the Indenture Trustee and the Noteholders. The Notes are subject to all terms
of the Indenture.

     The Class A-1 Notes, Class A-2 Notes, Class A-3 Notes and Class A-4 Notes
are and will be equally and ratably secured by the collateral pledged as
security therefor as provided in the Indenture.

     Principal of the Class A-1 Notes will be payable on each Payment Date in
an amount described on the face hereof. "Payment Date" means the 15th day of
each month, or, if any such day is not a Business Day, the next succeeding
Business Day, commencing April 15, 2005.

     As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class A-1 Final Scheduled Payment
Date. Notwithstanding the foregoing, the entire unpaid principal amount of the
Notes shall be due and payable on the date on which an Event of Default shall
have occurred and be continuing and the Indenture Trustee or the Noteholders
of Notes evidencing not less than a majority of the principal amount of the
Class A Notes have declared the Notes to be immediately due and payable in the
manner provided in Section 5.2 of the Indenture. All principal payments on the
Class A-1 Notes shall be made pro rata to the Noteholders entitled thereto.

     Payments of interest on this Note on each Payment Date, together with the
installment of principal, if any, to the extent not in full payment of this
Note, shall be made to the Person whose name appears as the Registered
Noteholder of the Note (or one or more Predecessor Notes) on the Note Register
as of the close of business on each Record Date either by wire transfer in
immediately available funds, to the account of such Noteholder at a bank or
other entity having appropriate facilities therefor, if such Noteholder shall
have provided to the Note Registrar appropriate written instructions at least
five Business Days prior to such Payment Date and such Noteholder's Notes in
the aggregate evidence a denomination of not less than $1,000,000, or, if not,
by check mailed first-class postage prepaid to such Person's address as it
appears on the Note Register on such Record Date; provided that, unless
Definitive Notes have been issued to Note Owners, with respect to Notes
registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), payments will be made by
wire transfer in immediately available funds to the account designated by such
nominee. Such payments will be made without requiring that this Note be
submitted for notation of payment. Any reduction in the principal amount of
this Note (or any one or more Predecessor Notes) effected by any payments made
on any Payment Date shall be binding upon all future Noteholders of this Note
and of any Note issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not noted hereon. If funds are expected
to be

                                    A-1-4

<PAGE>

available, as provided in the Indenture, for payment in full of the then
remaining unpaid principal amount of this Note on a Payment Date, then the
Indenture Trustee, in the name of and on behalf of the Issuer, will notify the
Person who was the Registered Noteholder hereof as of the Record Date
preceding such Payment Date by notice mailed or transmitted by facsimile prior
to such Payment Date, and the amount then due and payable shall be payable
only upon presentation and surrender of this Note at the Indenture Trustee's
principal Corporate Trust Office or at the office of the Indenture Trustee's
agent appointed for such purposes located in The City of New York.

     The Issuer shall pay interest on overdue installments of interest at the
Class A-1 Rate to the extent lawful.

     As provided in the Indenture, the Notes may be prepaid, in whole but not
in part, in the manner and to the extent described in the Indenture and the
Sale and Servicing Agreement.

     As provided in the Indenture, and subject to certain limitations set
forth therein, the transfer of this Note may be registered on the Note
Register upon surrender of this Note for registration of transfer at the
office or agency designated by the Issuer pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Noteholder hereof
or such Noteholder's attorney duly authorized in writing, with such signature
guaranteed by an "eligible guarantor institution" meeting the requirements of
the Note Registrar, and thereupon one or more new Notes of the same Class in
authorized denominations and in the same aggregate principal amount will be
issued to the designated transferee or transferees. No service charge will be
charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such
registration of transfer or exchange.

     Each Noteholder or Note Owner, by its 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,
each in its individual capacity, (ii) any owner of a beneficial interest in
the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director
or employee of the Indenture Trustee or the Owner Trustee, each in its
individual capacity, any holder of a beneficial interest in the Issuer, the
Owner Trustee or the Indenture Trustee or of any successor or assign of the
Indenture Trustee or the Owner Trustee, each in its individual capacity,
except as any such Person may have expressly agreed 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 for stock, unpaid capital contribution or failure to pay any
installment 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 by
accepting the benefits of the Indenture that such Noteholder or Note Owner
will not at any time institute against the Issuer, or join in any institution
against the Issuer of, any bankruptcy, reorganization, arrangement, insolvency
or liquidation proceedings under any United States federal or State bankruptcy

                                    A-1-5

<PAGE>

or similar law in connection with any obligations relating to the Notes, the
Indenture or the other Basic Documents.

     The Issuer has entered into the Indenture and this Note is issued with
the intention that, for federal, State and local income, and franchise tax
purposes, the Notes will qualify as indebtedness of the Issuer secured by the
Indenture Trust Estate. Each Noteholder, by its acceptance of a Note (and each
Note Owner by its acceptance of a beneficial interest in a Note), will be
deemed to agree to treat the Notes for federal, State and local income and
franchise tax purposes as indebtedness of the Issuer.

     Each Noteholder or Note Owner, by its acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, will be deemed to have
represented that (x) it is not, and is not acquiring the Note on behalf of, or
with "plan assets" (as determined under Department of Labor Regulation
ss.2510.3-101 or otherwise) of, a Plan, or any employee benefit plan subject
to Similar Law, or (y) its acquisition and holding of the Note do not give
rise to a transaction prohibited under Section 406 of ERISA or Section 4975 of
the Code or under any applicable Similar Law for which an exemption, all of
the conditions of which are satisfied, is not available.

     Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Note (as of the day of
determination or as of such other date as may be specified in the Indenture)
is registered as the owner hereof for all purposes, whether or not this Note
be overdue, and none of the Issuer, the Indenture Trustee or any such agent
shall be affected by notice to the contrary.

     The Indenture permits (with certain exceptions requiring the consent of
all Noteholders adversely affected) the amendment thereof by the Issuer and
the Indenture Trustee without the consent of the Noteholders provided certain
conditions are satisfied. The Indenture also contains provisions permitting
the Noteholders of Notes evidencing specified percentages of the principal
amount of the Notes Outstanding, on behalf of all Noteholders, 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 Noteholder of this Note (or any one or more Predecessor Notes)
shall be conclusive and binding upon such Noteholder and upon all future
Noteholders 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 term "Issuer", as used in this Note, includes any successor to the
Issuer under the Indenture.

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

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

                                    A-1-6

<PAGE>

     This Note and the Indenture shall be governed by, and construed in
accordance with the laws of the State of New York, without reference to its
conflicts of law provisions.

     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.

     Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, none of Indenture Trustee, in its individual
capacity, Owner Trustee, in its individual capacity, any owner of a beneficial
interest in the Issuer, or 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 or of interest on this Note or performance of, or
omission to perform, any of the covenants, obligations or indemnifications
contained in the Indenture. The holder of this Note, by such holder's
acceptance hereof, agrees that, except as expressly provided in the Basic
Documents, in the case of an Event of Default under the Indenture, the
Noteholder 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.

                                    A-1-7

<PAGE>

                                  ASSIGNMENT

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

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

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto:

------------------------------------------------------------------------------
         (name and address of assignee)

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

Dated: _____________________                 ____________________________*/
                                             Signature Guaranteed

                                             ____________________________*/

---------------------------
*/ NOTICE: The signature to this assignment must correspond with the name of
the registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting
the requirements of the Note Registrar.

                                    A-1-8

<PAGE>

                                  EXHIBIT A-2

                            FORM OF CLASS A-2 NOTE

     [FOR BOOK-ENTRY NOTES] [UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
("DTC"), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

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

REGISTERED                               $237,000,000
No. A-2-___                              CUSIP NO. 903278BT5

                         USAA AUTO OWNER TRUST 2005-1

                      CLASS A-2 3.55% ASSET BACKED NOTES

     USAA Auto Owner Trust 2005-1, a statutory trust organized and existing
under the laws of the State of Delaware (herein referred to as the "Issuer"),
for value received, hereby promises to pay to CEDE & CO., or registered
assigns, the principal sum of ______________________ dollars payable on each
Payment Date in an amount equal to the result obtained by multiplying (i) a
fraction the numerator of which is $___________ (the original face amount of
this Note) and the denominator of which is $237,000,000 by (ii) the aggregate
amount, if any, payable to holders of Class A-2 Notes on such Payment Date
from the Principal Distribution Account or otherwise in respect of principal
on the Class A-2 Notes pursuant to Section 3.1 of the Indenture dated as of
March 15, 2005 (as from time to time amended, supplemented or otherwise
modified and in effect, the "Indenture"), between the Issuer and JPMorgan
Chase Bank, National Association, as Indenture Trustee (in such capacity the
"Indenture Trustee"); provided, however, that the entire unpaid principal
amount of this Note shall be due and payable on the September 2007 Payment
Date (the "Class A-2 Final Scheduled Payment Date"). No payments of principal
of the Class A-2 Notes will be made until the Class A-1 Notes have been paid
in full. Capitalized terms used but not defined herein are defined in Article
I of the Indenture, which also contains rules as to construction that shall be
applicable herein.

     The Issuer shall pay interest on this Note at the rate per annum shown
above on each Payment Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note Outstanding on the
preceding Payment Date or the Closing Date

                                    A-2-1
<PAGE>

in the case of the first Payment Date (after giving effect to all payments of
principal made on such preceding Payment Date), subject to certain limitations
contained in Section 3.1 of the Indenture. Interest on this Note will accrue
for each Payment Date from and including the fifteenth day of the calendar
month immediately preceding such Payment Date (or, in the case of the initial
Payment Date, from the Closing Date) to but excluding the fifteenth day of the
calendar month of the Payment Date. Interest will be computed on the basis of
a 360-day year of twelve 30-day months. 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 as at the time of payment is legal
tender for payment of public and private debts. All payments made by the
Issuer with respect to this Note shall be applied first to interest due and
payable on this Note as provided above and then to the unpaid principal of
this Note.

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

     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.

              [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

                                    A-2-2

<PAGE>

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

Date: March 15, 2005

                          USAA AUTO OWNER TRUST 2005-1

                          By:      Wachovia Bank of Delaware, National
                                   Association, not in its individual
                                   capacity but solely as Owner Trustee of
                                   USAA Auto Owner Trust 2005-1

                                  By:
                                       -----------------------------------
                                             Authorized Officer

               INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

         This is one of the Class A-2 Notes designated above and referred to
in the within-mentioned Indenture.

Date: March 15, 2005

                                JPMORGAN CHASE BANK, NATIONAL
                                ASSOCIATION,
                                not in its individual capacity but
                                solely as Indenture Trustee

                                     By:
                                             -------------------------------
                                                  Authorized Officer

                                    A-2-3

<PAGE>

                               [REVERSE OF NOTE]

     This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class A-2 3.55% Asset Backed Notes (the "Class A-2 Notes")
which, together with the Issuer's Class A-1 3.0272% Asset Backed Notes (the
"Class A-1 Notes"), Class A-3 3.90% Asset Backed Notes (the "Class A-3 Notes")
and Class A-4 4.13% Asset Backed Notes (the "Class A-4 Notes" and, together
with the Class A-1 Notes, the Class A-2 Notes and Class A-3 Notes, the "Class
A Notes" or the "Notes"), are issued under the Indenture, to which Indenture
and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights and obligations thereunder of the Issuer,
the Indenture Trustee and the Noteholders. The Notes are subject to all terms
of the Indenture.

     The Class A-1 Notes, Class A-2 Notes, Class A-3 Notes and Class A-4 Notes
are and will be equally and ratably secured by the collateral pledged as
security therefor as provided in the Indenture.

     Principal of the Class A-2 Notes will be payable on each Payment Date in
an amount described on the face hereof. "Payment Date" means the 15th day of
each month, or, if any such day is not a Business Day, the next succeeding
Business Day, commencing April 15, 2005.

     As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class A-2 Final Scheduled Payment
Date. Notwithstanding the foregoing, the entire unpaid principal amount of the
Notes shall be due and payable on the date on which an Event of Default shall
have occurred and be continuing and the Indenture Trustee or the Noteholders
of Notes evidencing not less than a majority of the principal amount of the
Class A Notes have declared the Notes to be immediately due and payable in the
manner provided in Section 5.2 of the Indenture. All principal payments on the
Class A-2 Notes shall be made pro rata to the Noteholders entitled thereto.

     Payments of interest on this Note on each Payment Date, together with the
installment of principal, if any, to the extent not in full payment of this
Note, shall be made to the Person whose name appears as the Registered
Noteholder of the Note (or one or more Predecessor Notes) on the Note Register
as of the close of business on each Record Date either by wire transfer in
immediately available funds, to the account of such Noteholder at a bank or
other entity having appropriate facilities therefor, if such Noteholder shall
have provided to the Note Registrar appropriate written instructions at least
five Business Days prior to such Payment Date and such Noteholder's Notes in
the aggregate evidence a denomination of not less than $1,000,000, or, if not,
by check mailed first-class postage prepaid to such Person's address as it
appears on the Note Register on such Record Date; provided that, unless
Definitive Notes have been issued to Note Owners, with respect to Notes
registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), payments will be made by
wire transfer in immediately available funds to the account designated by such
nominee. Such payments will be made without requiring that this Note be
submitted for notation of payment. Any reduction in the principal amount of
this Note (or any one or more Predecessor Notes) effected by any payments made
on any Payment Date shall be binding upon all future Noteholders of this Note
and of any Note issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not noted hereon. If funds are expected
to be

                                    A-2-4

<PAGE>

available, as provided in the Indenture, for payment in full of the then
remaining unpaid principal amount of this Note on a Payment Date, then the
Indenture Trustee, in the name of and on behalf of the Issuer, will notify the
Person who was the Registered Noteholder hereof as of the Record Date
preceding such Payment Date by notice mailed or transmitted by facsimile prior
to such Payment Date, and the amount then due and payable shall be payable
only upon presentation and surrender of this Note at the Indenture Trustee's
principal Corporate Trust Office or at the office of the Indenture Trustee's
agent appointed for such purposes located in The City of New York.

     The Issuer shall pay interest on overdue installments of interest at the
Class A-2 Rate to the extent lawful.

     As provided in the Indenture, the Notes may be redeemed, in whole but not
in part, in the manner and to the extent described in the Indenture and the
Sale and Servicing Agreement.

     As provided in the Indenture, and subject to certain limitations set
forth therein, the transfer of this Note may be registered on the Note
Register upon surrender of this Note for registration of transfer at the
office or agency designated by the Issuer pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Noteholder hereof
or such Noteholder's attorney duly authorized in writing, with such signature
guaranteed by an "eligible guarantor institution" meeting the requirements of
the Note Registrar, and thereupon one or more new Notes of the same Class in
authorized denominations and in the same aggregate principal amount will be
issued to the designated transferee or transferees. No service charge will be
charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such
registration of transfer or exchange.

     Each Noteholder or Note Owner, by its 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,
each in its individual capacity, (ii) any owner of a beneficial interest in
the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director
or employee of the Indenture Trustee or the Owner Trustee, each in its
individual capacity, any holder of a beneficial interest in the Issuer, the
Owner Trustee or the Indenture Trustee or of any successor or assign of the
Indenture Trustee or the Owner Trustee, each in its individual capacity,
except as any such Person may have expressly agreed 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 for stock, unpaid capital contribution or failure to pay any
installment 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 by
accepting the benefits of the Indenture that such Noteholder or Note Owner
will not at any time institute against the Issuer, or join in any institution
against the Issuer of, any bankruptcy, reorganization, arrangement, insolvency
or liquidation proceedings under any United States federal or State bankruptcy
or

                                    A-2-5

<PAGE>

similar law in connection with any obligations relating to the Notes, the
Indenture or the other Basic Documents.

     The Issuer has entered into the Indenture and this Note is issued with
the intention that, for federal, State and local income, and franchise tax
purposes, the Notes will qualify as indebtedness of the Issuer secured by the
Indenture Trust Estate. Each Noteholder, by its acceptance of a Note (and each
Note Owner by its acceptance of a beneficial interest in a Note), will be
deemed to agree to treat the Notes for federal, State and local income and
franchise tax purposes as indebtedness of the Issuer.

     Each Noteholder or Note Owner, by its acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, will be deemed to have
represented that (x) it is not, and is not acquiring the Note on behalf of, or
with "plan assets" (as determined under Department of Labor Regulation
ss.2510.3-101 or otherwise) of, a Plan, or any employee benefit plan subject
to Similar Law, or (y) its acquisition and holding of the Note do not give
rise to a transaction prohibited under Section 406 of ERISA or Section 4975 of
the Code or under any applicable Similar Law for which an exemption, all of
the conditions of which are satisfied, is not available.

     Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Note (as of the day of
determination or as of such other date as may be specified in the Indenture)
is registered as the owner hereof for all purposes, whether or not this Note
be overdue, and none of the Issuer, the Indenture Trustee or any such agent
shall be affected by notice to the contrary.

     The Indenture permits (with certain exceptions requiring the consent of
all Noteholders adversely affected) the amendment thereof by the Issuer and
the Indenture Trustee without the consent of the Noteholders provided certain
conditions are satisfied. The Indenture also contains provisions permitting
the Noteholders of Notes evidencing specified percentages of the principal
amount of the Notes Outstanding, on behalf of all Noteholders, 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 Noteholder of this Note (or any one or more Predecessor Notes)
shall be conclusive and binding upon such Noteholder and upon all future
Noteholders 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 term "Issuer", as used in this Note, includes any successor to the
Issuer under the Indenture.

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

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

                                    A-2-6

<PAGE>

     This Note and the Indenture shall be governed by, and construed in
accordance with the laws of the State of New York, without reference to its
conflicts of law provisions.

     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.

     Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, none of Indenture Trustee, in its individual
capacity, Owner Trustee, in its individual capacity, any owner of a beneficial
interest in the Issuer, or 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 or of interest on this Note or performance of, or
omission to perform, any of the covenants, obligations or indemnifications
contained in the Indenture. The holder of this Note, by such holder's
acceptance hereof, agrees that, except as expressly provided in the Basic
Documents, in the case of an Event of Default under the Indenture, the
Noteholder 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.

                                    A-2-7

<PAGE>

                                  ASSIGNMENT

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

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

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto:

---------------------------------------------------------------------------
         (name and address of assignee)

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

Dated: _____________________                     ____________________________*/
                                                 Signature Guaranteed

                                                 ____________________________*/
---------------------------
*/ NOTICE: The signature to this assignment must correspond with the name of
the registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting
the requirements of the Note Registrar.

                                    A-2-8

<PAGE>

                                  EXHIBIT A-3

                            FORM OF CLASS A-3 NOTE

     [FOR BOOK-ENTRY NOTES] [UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
("DTC"), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

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

REGISTERED                             $393,000,000
No. A-3-___                            CUSIP NO. 903278BU2

                         USAA AUTO OWNER TRUST 2005-1

                      CLASS A-3 3.90% ASSET BACKED NOTES

     USAA Auto Owner Trust 2005-1, a statutory trust organized and existing
under the laws of the State of Delaware (herein referred to as the "Issuer"),
for value received, hereby promises to pay to CEDE & CO., or registered
assigns, the principal sum of ____________________ dollars payable on each
Payment Date in an amount equal to the result obtained by multiplying (i) a
fraction the numerator of which is $__________ (the original face amount of
this Note) and the denominator of which is $393,000,000 by (ii) the aggregate
amount, if any, payable to holders of Class A-3 Notes on such Payment Date
from the Principal Distribution Account or otherwise in respect of principal
on the Class A-3 Notes pursuant to Section 3.1 of the Indenture dated as of
March 15, 2005 (as from time to time amended, supplemented or otherwise
modified and in effect, the "Indenture"), between the Issuer and JPMorgan
Chase Bank, National Association, as Indenture Trustee (in such capacity the
"Indenture Trustee"); provided, however, that the entire unpaid principal
amount of this Note shall be due and payable on the July 2009 Payment Date
(the "Class A-3 Final Scheduled Payment Date"). No payments of principal of
the Class A-3 Notes will be made until the Class A-1 Notes and, except in the
case of an Event of Default, Class A-2 Notes have been paid in full.
Capitalized terms used but not defined herein are defined in Article I of the
Indenture, which also contains rules as to construction that shall be
applicable herein.

     The Issuer shall pay interest on this Note at the rate per annum shown
above on each Payment Date until the principal of this Note is paid or made
available for payment, on the

                                    A-3-1

<PAGE>

principal amount of this Note Outstanding on the preceding Payment Date or the
Closing Date in the case of the first Payment Date (after giving effect to all
payments of principal made on such preceding Payment Date), subject to certain
limitations contained in Section 3.1 of the Indenture. Interest on this Note
will accrue for each Payment Date from and including the fifteenth day of the
calendar month immediately preceding such Payment Date (or, in the case of the
initial Payment Date, from the Closing Date) to but excluding the fifteenth
day of the calendar month of the Payment Date. Interest will be computed on
the basis of a 360-day year of twelve 30-day months. 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 as at the time of payment is legal
tender for payment of public and private debts. All payments made by the
Issuer with respect to this Note shall be applied first to interest due and
payable on this Note as provided above and then to the unpaid principal of
this Note.

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

     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.

              [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

                                    A-3-2

<PAGE>

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

Date: March 15, 2005             USAA AUTO OWNER TRUST 2005-1

                                 By:   Wachovia Bank of Delaware, National
                                       Association, not in its individual
                                       capacity but solely as Owner Trustee of
                                       USAA Auto Owner Trust 2005-1

                                       By:
                                       ------------------------------------
                                                 Authorized Officer

               INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

     This is one of the Class A-3 Notes designated above and referred to in
the within-mentioned Indenture.

Date: March 15, 2005

                          JPMORGAN CHASE BANK, NATIONAL
                          ASSOCIATION,
                          not in its individual capacity but solely as Indenture
                          Trustee

                                By:
                                    --------------------------------
                                          Authorized Officer

                                    A-3-3

<PAGE>

                               [REVERSE OF NOTE]

     This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class A-3 3.90% Asset Backed Notes (the "Class A-3 Notes")
which, together with the Issuer's Class A-1 3.0272% Asset Backed Notes (the
"Class A-1 Notes"), Class A-2 3.55% Asset Backed Notes (the "Class A-2 Notes")
and Class A-4 4.13% Asset Backed Notes (the "Class A-4 Notes" and, together
with the Class A-1 Notes, the Class A-2 Notes and the Class A-3 Notes, the
"Class A Notes" or the "Notes"), are issued under the Indenture, to which
Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights and obligations thereunder of the Issuer,
the Indenture Trustee and the Noteholders. The Notes are subject to all terms
of the Indenture.

     The Class A-1 Notes, Class A-2 Notes, Class A-3 Notes and Class A-4 Notes
are and will be equally and ratably secured by the collateral pledged as
security therefor as provided in the Indenture.

     Principal of the Class A-3 Notes will be payable on each Payment Date in
an amount described on the face hereof. "Payment Date" means the 15th day of
each month, or, if any such day is not a Business Day, the next succeeding
Business Day, commencing April 15, 2005.

     As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class A-3 Final Scheduled Payment
Date. Notwithstanding the foregoing, the entire unpaid principal amount of the
Notes shall be due and payable on the date on which an Event of Default shall
have occurred and be continuing and the Indenture Trustee or the Noteholders
of Notes evidencing not less than a majority of the principal amount of the
Class A Notes have declared the Notes to be immediately due and payable in the
manner provided in Section 5.2 of the Indenture. All principal payments on the
Class A-3 Notes shall be made pro rata to the Noteholders entitled thereto.

     Payments of interest on this Note on each Payment Date, together with the
installment of principal, if any, to the extent not in full payment of this
Note, shall be made to the Person whose name appears as the Registered
Noteholder of the Note (or one or more Predecessor Notes) on the Note Register
as of the close of business on each Record Date either by wire transfer in
immediately available funds, to the account of such Noteholder at a bank or
other entity having appropriate facilities therefor, if such Noteholder shall
have provided to the Note Registrar appropriate written instructions at least
five Business Days prior to such Payment Date and such Noteholder's Notes in
the aggregate evidence a denomination of not less than $1,000,000, or, if not,
by check mailed first-class postage prepaid to such Person's address as it
appears on the Note Register on such Record Date; provided that, unless
Definitive Notes have been issued to Note Owners, with respect to Notes
registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), payments will be made by
wire transfer in immediately available funds to the account designated by such
nominee. Such payments will be made without requiring that this Note be
submitted for notation of payment. Any reduction in the principal amount of
this Note (or any one or more Predecessor Notes) effected by any payments made
on any Payment Date shall be binding upon all future Noteholders of this Note
and of any Note issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not noted hereon. If funds are expected
to be

                                    A-3-4

<PAGE>

available, as provided in the Indenture, for payment in full of the then
remaining unpaid principal amount of this Note on a Payment Date, then the
Indenture Trustee, in the name of and on behalf of the Issuer, will notify the
Person who was the Registered Noteholder hereof as of the Record Date
preceding such Payment Date by notice mailed or transmitted by facsimile prior
to such Payment Date, and the amount then due and payable shall be payable
only upon presentation and surrender of this Note at the Indenture Trustee's
principal Corporate Trust Office or at the office of the Indenture Trustee's
agent appointed for such purposes located in The City of New York.

     The Issuer shall pay interest on overdue installments of interest at the
Class A-3 Rate to the extent lawful.

     As provided in the Indenture, the Notes may be prepaid, in whole but not
in part, in the manner and to the extent described in the Indenture and the
Sale and Servicing Agreement.

     As provided in the Indenture, and subject to certain limitations set
forth therein, the transfer of this Note may be registered on the Note
Register upon surrender of this Note for registration of transfer at the
office or agency designated by the Issuer pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Noteholder hereof
or such Noteholder's attorney duly authorized in writing, with such signature
guaranteed by an "eligible guarantor institution" meeting the requirements of
the Note Registrar, and thereupon one or more new Notes of the same Class in
authorized denominations and in the same aggregate principal amount will be
issued to the designated transferee or transferees. No service charge will be
charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such
registration of transfer or exchange.

     Each Noteholder or Note Owner, by its 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,
each in its individual capacity, (ii) any owner of a beneficial interest in
the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director
or employee of the Indenture Trustee or the Owner Trustee, each in its
individual capacity, any holder of a beneficial interest in the Issuer, the
Owner Trustee or the Indenture Trustee or of any successor or assign of the
Indenture Trustee or the Owner Trustee, each in its individual capacity,
except as any such Person may have expressly agreed 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 for stock, unpaid capital contribution or failure to pay any
installment 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 by
accepting the benefits of the Indenture that such Noteholder or Note Owner
will not at any time institute against the Issuer, or join in any institution
against the Issuer of, any bankruptcy, reorganization, arrangement, insolvency
or liquidation proceedings under any United States federal or State bankruptcy
or

                                    A-3-5

<PAGE>

similar law in connection with any obligations relating to the Notes, the
Indenture or the other Basic Documents.

     The Issuer has entered into the Indenture and this Note is issued with
the intention that, for federal, State and local income, and franchise tax
purposes, the Notes will qualify as indebtedness of the Issuer secured by the
Indenture Trust Estate. Each Noteholder, by its acceptance of a Note (and each
Note Owner by its acceptance of a beneficial interest in a Note), will be
deemed to agree to treat the Notes for federal, State and local income and
franchise tax purposes as indebtedness of the Issuer.

     Each Noteholder or Note Owner, by its acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, will be deemed to have
represented that (x) it is not, and is not acquiring the Note on behalf of, or
with "plan assets" (as determined under Department of Labor Regulation
ss.2510.3-101 or otherwise) of, a Plan, or any employee benefit plan subject
to Similar Law, or (y) its acquisition and holding of the Note do not give
rise to a transaction prohibited under Section 406 of ERISA or Section 4975 of
the Code or under any applicable Similar Law for which an exemption, all of
the conditions of which are satisfied, is not available.

     Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Note (as of the day of
determination or as of such other date as may be specified in the Indenture)
is registered as the owner hereof for all purposes, whether or not this Note
be overdue, and none of the Issuer, the Indenture Trustee or any such agent
shall be affected by notice to the contrary.

     The Indenture permits (with certain exceptions requiring the consent of
all Noteholders adversely affected) the amendment thereof by the Issuer and
the Indenture Trustee without the consent of the Noteholders provided certain
conditions are satisfied. The Indenture also contains provisions permitting
the Noteholders of Notes evidencing specified percentages of the principal
amount of the Notes Outstanding, on behalf of all Noteholders, 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 Noteholder of this Note (or any one or more Predecessor Notes)
shall be conclusive and binding upon such Noteholder and upon all future
Noteholders 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 term "Issuer," as used in this Note, includes any successor to the
Issuer under the Indenture.

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

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

                                    A-3-6

<PAGE>

     This Note and the Indenture shall be governed by, and construed in
accordance with the laws of the State of New York, without reference to its
conflicts of law provisions.

     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.

     Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, none of Indenture Trustee, in its individual
capacity, Owner Trustee, in its individual capacity, any owner of a beneficial
interest in the Issuer, or 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 or of interest on this Note or performance of, or
omission to perform, any of the covenants, obligations or indemnifications
contained in the Indenture. The holder of this Note, by such holder's
acceptance hereof, agrees that, except as expressly provided in the Basic
Documents, in the case of an Event of Default under the Indenture, the
Noteholder 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.

                                    A-3-7

<PAGE>

                                  ASSIGNMENT

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

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

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto:

         (name and address of assignee)

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

Dated: _____________________                   ____________________________*/
                                               Signature Guaranteed

                                               ____________________________*/
---------------------------
*/ NOTICE: The signature to this assignment must correspond with the name of
the registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting
the requirements of the Note Registrar.

                                    A-3-8

<PAGE>

                                  EXHIBIT A-4

                            FORM OF CLASS A-4 NOTE

     [FOR BOOK-ENTRY NOTES] [UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
("DTC"), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

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

REGISTERED                           $171,177,000
No. A-4-___                          CUSIP NO. 903278BV0

                         USAA AUTO OWNER TRUST 2005-1

                      CLASS A-4 4.13% ASSET BACKED NOTES

     USAA Auto Owner Trust 2005-1, a statutory trust organized and existing
under the laws of the State of Delaware (herein referred to as the "Issuer"),
for value received, hereby promises to pay to CEDE & CO., or registered
assigns, the principal sum of _____________________ dollars payable on each
Payment Date in an amount equal to the result obtained by multiplying (i) a
fraction the numerator of which is $__________ (the original face amount of
this Note) and the denominator of which is $171,177,000 by (ii) the aggregate
amount, if any, payable to holders of Class A-4 Notes on such Payment Date
from the Principal Distribution Account or otherwise in respect of principal
on the Class A-4 Notes pursuant to Section 3.1 of the Indenture dated as of
March 15, 2005 (as from time to time amended, supplemented or otherwise
modified and in effect, the "Indenture"), between the Issuer and JPMorgan
Chase Bank, National Association, as Indenture Trustee (in such capacity the
"Indenture Trustee"); provided, however, that the entire unpaid principal
amount of this Note shall be due and payable on the November 2011 Payment Date
(the "Class A-4 Final Scheduled Payment Date"). No payments of principal of
the Class A-4 Notes will be made until the Class A-1 Notes and, except in the
case of an Event of Default, the Class A-2 Notes and Class A-3 Notes have been
paid in full. Capitalized terms used but not defined herein are defined in
Article I of the Indenture, which also contains rules as to construction that
shall be applicable herein.

     The Issuer shall pay interest on this Note at the rate per annum shown
above on each Payment Date until the principal of this Note is paid or made
available for payment, on the

                                    A-4-1

<PAGE>

principal amount of this Note Outstanding on the preceding Payment Date or the
Closing Date in the case of the first Payment Date (after giving effect to all
payments of principal made on such preceding Payment Date), subject to certain
limitations contained in Section 3.1 of the Indenture. Interest on this Note
will accrue for each Payment Date from and including the fifteenth day of the
calendar month immediately preceding such Payment Date (or, in the case of the
initial Payment Date, from the Closing Date) to but excluding the fifteenth
day of the calendar month of the Payment Date. Interest will be computed on
the basis of a 360-day year of twelve 30-day months. 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 as at the time of payment is legal
tender for payment of public and private debts. All payments made by the
Issuer with respect to this Note shall be applied first to interest due and
payable on this Note as provided above and then to the unpaid principal of
this Note.

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

     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.

              [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

                                    A-4-2

<PAGE>

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

Date: March 15, 2005              USAA AUTO OWNER TRUST 2005-1

                                  By:  Wachovia Bank of Delaware, National
                                       Association, not in its individual
                                       capacity but solely as Owner Trustee of
                                       USAA Auto Owner Trust 2005-1

                                       By:
                                           --------------------------------
                                                  Authorized Officer

               INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

     This is one of the Class A-4 Notes designated above and referred to in
the within-mentioned Indenture.

Date: March 15, 2005

                      JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,
                      not in its individual capacity but solely as Indenture
                      Trustee

                                   By:
                                       -------------------------------------
                                               Authorized Officer

                                    A-4-3

<PAGE>

                               [REVERSE OF NOTE]

     This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class A-4 4.13% Asset Backed Notes (the "Class A-4 Notes")
which, together with the Issuer's Class A-1 3.0272% Asset Backed Notes (the
"Class A-1 Notes"), Class A-2 3.55% Asset Backed Notes (the "Class A-2 Notes")
and Class A-3 3.90% Asset Backed Notes (the "Class A-3 Notes" and, together
with the Class A-1 Notes, the Class A-2 Notes and the Class A-4 Notes, the
"Class A Notes" or the "Notes"), are issued under the Indenture, to which
Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights and obligations thereunder of the Issuer,
the Indenture Trustee and the Noteholders. The Notes are subject to all terms
of the Indenture.

     The Class A-1 Notes, Class A-2 Notes, Class A-3 Notes and Class A-4 Notes
are and will be equally and ratably secured by the collateral pledged as
security therefor as provided in the Indenture.

     Principal of the Class A-4 Notes will be payable on each Payment Date in
an amount described on the face hereof. "Payment Date" means the 15th day of
each month, or, if any such day is not a Business Day, the next succeeding
Business Day, commencing April 15, 2005.

     As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class A-4 Final Scheduled Payment
Date. Notwithstanding the foregoing, the entire unpaid principal amount of the
Notes shall be due and payable on the date on which an Event of Default shall
have occurred and be continuing and the Indenture Trustee or the Noteholders
of Notes evidencing not less than a majority of the principal amount of the
Class A Notes have declared the Notes to be immediately due and payable in the
manner provided in Section 5.2 of the Indenture. All principal payments on the
Class A-4 Notes shall be made pro rata to the Noteholders entitled thereto.

     Payments of interest on this Note on each Payment Date, together with the
installment of principal, if any, to the extent not in full payment of this
Note, shall be made to the Person whose name appears as the Registered
Noteholder of the Note (or one or more Predecessor Notes) on the Note Register
as of the close of business on each Record Date either by wire transfer in
immediately available funds, to the account of such Noteholder at a bank or
other entity having appropriate facilities therefor, if such Noteholder shall
have provided to the Note Registrar appropriate written instructions at least
five Business Days prior to such Payment Date and such Noteholder's Notes in
the aggregate evidence a denomination of not less than $1,000,000, or, if not,
by check mailed first-class postage prepaid to such Person's address as it
appears on the Note Register on such Record Date; provided that, unless
Definitive Notes have been issued to Note Owners, with respect to Notes
registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), payments will be made by
wire transfer in immediately available funds to the account designated by such
nominee. Such payments will be made without requiring that this Note be
submitted for notation of payment. Any reduction in the principal amount of
this Note (or any one or more Predecessor Notes) effected by any payments made
on any Payment Date shall be binding upon all future Noteholders of this Note
and of any Note issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not noted hereon. If funds are expected
to be

                                    A-4-4

<PAGE>

available, as provided in the Indenture, for payment in full of the then
remaining unpaid principal amount of this Note on a Payment Date, then the
Indenture Trustee, in the name of and on behalf of the Issuer, will notify the
Person who was the Registered Noteholder hereof as of the Record Date
preceding such Payment Date by notice mailed or transmitted by facsimile prior
to such Payment Date, and the amount then due and payable shall be payable
only upon presentation and surrender of this Note at the Indenture Trustee's
principal Corporate Trust Office or at the office of the Indenture Trustee's
agent appointed for such purposes located in The City of New York.

     The Issuer shall pay interest on overdue installments of interest at the
Class A-4 Rate to the extent lawful.

     As provided in the Indenture, the Notes may be prepaid, in whole but not
in part, in the manner and to the extent described in the Indenture and the
Sale and Servicing Agreement.

     As provided in the Indenture, and subject to certain limitations set
forth therein, the transfer of this Note may be registered on the Note
Register upon surrender of this Note for registration of transfer at the
office or agency designated by the Issuer pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Noteholder hereof
or such Noteholder's attorney duly authorized in writing, with such signature
guaranteed by an "eligible guarantor institution" meeting the requirements of
the Note Registrar, and thereupon one or more new Notes of the same Class in
authorized denominations and in the same aggregate principal amount will be
issued to the designated transferee or transferees. No service charge will be
charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such
registration of transfer or exchange.

     Each Noteholder or Note Owner, by its 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,
each in its individual capacity, (ii) any owner of a beneficial interest in
the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director
or employee of the Indenture Trustee or the Owner Trustee, each in its
individual capacity, any holder of a beneficial interest in the Issuer, the
Owner Trustee or the Indenture Trustee or of any successor or assign of the
Indenture Trustee or the Owner Trustee, each in its individual capacity,
except as any such Person may have expressly agreed 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 for stock, unpaid capital contribution or failure to pay any
installment 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 by
accepting the benefits of the Indenture that such Noteholder or Note Owner
will not at any time institute against the Issuer, or join in any institution
against the Issuer of, any bankruptcy, reorganization, arrangement, insolvency
or liquidation proceedings under any United States federal or State bankruptcy
or

                                    A-4-5

<PAGE>

similar law in connection with any obligations relating to the Notes, the
Indenture or the other Basic Documents.

     The Issuer has entered into the Indenture and this Note is issued with
the intention that, for federal, State and local income, and franchise tax
purposes, the Notes will qualify as indebtedness of the Issuer secured by the
Indenture Trust Estate. Each Noteholder, by its acceptance of a Note (and each
Note Owner by its acceptance of a beneficial interest in a Note), will be
deemed to agree to treat the Notes for federal, State and local income and
franchise tax purposes as indebtedness of the Issuer.

     Each Noteholder or Note Owner, by its acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, will be deemed to have
represented that (x) it is not, and is not acquiring the Note on behalf of, or
with "plan assets" (as determined under Department of Labor Regulation
ss.2510.3-101 or otherwise) of, a Plan, or any employee benefit plan subject
to Similar Law, or (y) its acquisition and holding of the Note do not give
rise to a transaction prohibited under Section 406 of ERISA or Section 4975 of
the Code or under any applicable Similar Law for which an exemption, all of
the conditions of which are satisfied, is not available.

     Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Note (as of the day of
determination or as of such other date as may be specified in the Indenture)
is registered as the owner hereof for all purposes, whether or not this Note
be overdue, and none of the Issuer, the Indenture Trustee or any such agent
shall be affected by notice to the contrary.

     The Indenture permits (with certain exceptions requiring the consent of
all Noteholders adversely affected) the amendment thereof by the Issuer and
the Indenture Trustee without the consent of the Noteholders provided certain
conditions are satisfied. The Indenture also contains provisions permitting
the Noteholders of Notes evidencing specified percentages of the principal
amount of the Notes Outstanding, on behalf of all Noteholders, 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 Noteholder of this Note (or any one or more Predecessor Notes)
shall be conclusive and binding upon such Noteholder and upon all future
Noteholders 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 term "Issuer," as used in this Note, includes any successor to the
Issuer under the Indenture.

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

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

                                    A-4-6

<PAGE>

     This Note and the Indenture shall be governed by, and construed in
accordance with the laws of the State of New York, without reference to its
conflicts of law provisions.

      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.

     Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, none of Indenture Trustee, in its individual
capacity, Owner Trustee, in its individual capacity, any owner of a beneficial
interest in the Issuer, or 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 or of interest on this Note or performance of, or
omission to perform, any of the covenants, obligations or indemnifications
contained in the Indenture. The holder of this Note, by such holder's
acceptance hereof, agrees that, except as expressly provided in the Basic
Documents, in the case of an Event of Default under the Indenture, the
Noteholder 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.

                                    A-4-7

<PAGE>

                                  ASSIGNMENT

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

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

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto:

----------------------------------------------------------------------------
         (name and address of assignee)

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

Dated: _____________________                   ____________________________*/
                                               Signature Guaranteed

                                               ____________________________*/
---------------------------
*/ NOTICE: The signature to this assignment must correspond with the name of
the registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting
the requirements of the Note Registrar.

                                    A-4-8

<PAGE>

                                  SCHEDULE A

                            Schedule of Receivables

                       [On file with Indenture Trustee]

                                     SA-1

<PAGE>

                                  APPENDIX A

                             Definitions and Usage

         The following rules of construction and usage shall be applicable to
any agreement or instrument that is governed by this Appendix:

         (a) All terms defined in this Appendix shall have the defined
meanings when used in any agreement or instrument governed hereby and in any
certificate or other document made or delivered pursuant thereto unless
otherwise defined therein.

         (b) As used herein, in any agreement or instrument governed hereby
and in any certificate or other document made or delivered pursuant thereto,
accounting terms not defined in this Appendix or in any such agreement,
instrument, certificate or other document, and accounting terms partly defined
in this Appendix or in any such agreement, instrument, certificate or other
document, to the extent not defined, shall have the respective meanings given
to them under generally accepted accounting principles as in effect on the
date of such agreement or instrument. To the extent that the definitions of
accounting terms in this Appendix or in any such agreement, instrument,
certificate or other document are inconsistent with the meanings of such terms
under generally accepted accounting principles, the definitions contained in
this Appendix or in any such instrument, certificate or other document shall
control.

         The words "hereof," "herein," "hereunder" and words of similar import
when used in an agreement or instrument refer to such agreement or instrument
as a whole and not to any particular provision or subdivision thereof;
references in an agreement or instrument to "Article," "Section" or another
subdivision or to an attachment are, unless the context otherwise requires, to
an article, section or subdivision of or an attachment to such agreement or
instrument; and the term "including" and its variations shall be deemed to be
followed by "without limitation."

         The definitions contained in this Appendix are equally applicable to
both the singular and plural forms of such terms and to the masculine as well
as to the feminine and neuter genders of such terms.

         Any agreement, instrument or statute defined or referred to below or
in any agreement or instrument that is governed by this Appendix means such
agreement or instrument or statute as from time to time amended, modified or
supplemented, including (in the case of agreements or instruments) by waiver
or consent and (in the case of statutes) by succession of comparable successor
statutes and includes (in the case of agreements or instruments) references to
all attachments thereto and instruments incorporated therein. References to a
Person are also to its permitted successors and assigns.

                                  Definitions

         "Accrued Class A Note Interest" shall mean, with respect to any
Payment Date, the sum of the Class A Noteholders' Monthly Accrued Interest for
such Payment Date and the Class A Noteholders' Interest Carryover Shortfall
for such Payment Date.

                                 Appendix A-1

<PAGE>

         "Accrued Class B Certificate Interest" shall mean, with respect to
any Payment Date, the sum of the Class B Certificateholders' Monthly Accrued
Interest for such Payment Date and the Class B Certificateholders' Interest
Carryover Shortfall for such Payment Date.

         "Act" shall have the meaning specified in Section 11.3(a) of the
Indenture.

         "Administration Agreement" shall mean the Administration Agreement,
dated as of March 15, 2005, by and among the Administrator, the Issuer and the
Indenture Trustee.

         "Administrator" shall mean the Bank, in its capacity as administrator
under the Administration Agreement, or any successor Administrator thereunder.

         "Advance" shall mean the amount of interest, as of a Determination
Date, which the Servicer is required to advance on the Receivables pursuant to
Section 4.4(a) of the Sale and Servicing Agreement.

         "Affiliate" shall mean, with respect to any specified Person, any
other Person controlling or controlled by or under common control with such
specified Person. For the purposes of this definition, "control" when used
with respect to any Person shall mean 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" shall have meanings correlative to the foregoing.

         "Amount Financed" shall mean, with respect to a Receivable, the
amount advanced under the Receivable toward the purchase price of the Financed
Vehicle and any related costs.

         "Annual Percentage Rate" or "APR" of a Receivable shall mean the
annual rate of finance charges stated in the Receivable.

         "Applicable Tax State" shall mean, as of any date of determination,
each State as to which any of the following is then applicable: (a) a State in
which the Owner Trustee maintains its Corporate Trust Office and (b) the State
of Texas.

         "Authenticating Agent" shall have the meaning specified in Section
2.14 of the Indenture or 3.14 of the Trust Agreement, as applicable.

         "Authorized Officer" shall mean, (i) with respect to the Issuer, any
officer within the Corporate Trust Office of the Owner Trustee, including any
vice president, assistant vice president, secretary, assistant secretary or
any other officer of the Owner Trustee customarily performing functions
similar to those performed by any of the above designated officers and, for so
long as the Administration Agreement is in full force and effect, any 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 (ii) with respect to the Indenture Trustee
or the Owner Trustee, any officer within the Corporate Trust Office of the
Indenture Trustee or the Owner Trustee, as the case may be, including any vice
president, assistant vice president, secretary, assistant secretary or any
other officer of the Indenture Trustee or the Owner Trustee, as the case may
be, customarily performing functions similar to those performed by any of the
above designated officers and also, with respect to a

                                 Appendix A-2
<PAGE>

particular matter, any other officer to whom such matter is referred because
of such officer's knowledge of and familiarity with the particular subject, in
each case having direct responsibility for the administration of the Indenture
or the Trust Agreement, as applicable, and shall also mean, with respect to
the Owner Trustee, any officer of the Administrator.

         "Available Collections" shall mean, for any Payment Date, the sum of
the following amounts with respect to the Collection Period preceding such
Payment Date: (i) all payments collected with respect to Receivables; (ii) all
Liquidation Proceeds attributable to Receivables which were designated as
Defaulted Receivables in prior Collection Periods in accordance with the
Servicer's customary servicing procedures; (iii) all Advances made by the
Servicer of interest due on the Receivables; (iv) the Purchase Amount received
with respect to each Receivable that became a Purchased Receivable during such
Collection Period; and (v) partial prepayments of any refunded item included
in the principal balance of a Receivable, such as extended warranty protection
plan costs, or physical damage, credit life, disability insurance premiums, or
any partial prepayment which causes a reduction in the Obligor's periodic
payment to an amount below the Scheduled Payment as of the Cut-off Date;
provided however, that in calculating the Available Collections the following
will be excluded: (i) amounts received on any Receivable to the extent that
the Servicer has previously made an unreimbursed Advance on such Receivable
and the amount received exceeds the accrued and unpaid interest on such
Receivable that has not been advanced; (ii) amounts received on any of the
Receivables to the extent that the Servicer has previously made an
unreimbursed Advance on a Receivable which is not recoverable from collections
on the particular Receivable; (iii) all payments and proceeds (including
Liquidation Proceeds) of any Receivables the Purchase Amount of which has been
included in Available Funds in a prior Collection Period; (iv) Liquidation
Proceeds with respect to a Receivable attributable to accrued and unpaid
interest thereon (but not including interest for the then current Collection
Period) but only to the extent of any unreimbursed Advances; and (v) amounts
constituting the Supplemental Servicing Fee.

         "Available Funds" shall mean, for any Payment Date, the sum of the
Available Collections for such Payment Date and the Reserve Account Excess
Amount for such Payment Date.

         "Bank" shall mean USAA Federal Savings Bank, a federally chartered
savings association.

         "Bankruptcy Code" shall mean the United States Bankruptcy Code, 11
U.S.C. 101 et seq., as amended.

         "Basic Documents" shall mean the Certificate of Trust, the Trust
Agreement, the Sale and Servicing Agreement, the Receivables Purchase
Agreement, the Indenture, the Administration Agreement, the Underwriting
Agreement, the Note Depository Agreement and the other documents and
certificates delivered in connection therewith.

         "Benefit Plan Investor" shall mean (a) any "employee benefit plan"
(as defined in Section 3(3) of ERISA), whether or not subject to the
provisions of Title I of ERISA, (b) any "plan" described in Section 4975(e)(1)
of the Code, and (c) any entity whose underlying assets included plan assets
by reason of a plan's investment in the entity.

                                 Appendix A-3
<PAGE>

         "Book-Entry Certificate" shall mean, a beneficial interest in any of
the Class B Certificates issued in book-entry form as described in Section 3.2
of the Trust Agreement.

         "Book-Entry Note" shall mean a beneficial interest in any of the
Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class A-4
Notes, in each case issued in book-entry form.

         "Business Day" shall mean any day other than a Saturday, a Sunday or
a day on which banking institutions or trust companies in the State of New
York, the State of Delaware or the State of Texas are authorized by law,
regulation or executive order to be closed.

         "Certificate Balance" shall mean, as the context so requires, (i)
with respect to all the Class B Certificates, an amount equal to, initially,
the Initial Certificate Balance of the Class B Certificates and, thereafter,
an amount equal to the Initial Certificate Balance of the Class B
Certificates, reduced by all amounts distributed to Class B Certificateholders
and allocable to principal or (ii) with respect to any Class B Certificate, an
amount equal to, initially, the initial denomination of such Class B
Certificate and, thereafter, an amount equal to such initial denomination,
reduced by all amounts distributed in respect of such Class B Certificate and
allocable to principal; provided, that, unless all of the Certificates are
owned by the Depositor or an Affiliate of the Depositor, in determining
whether the holders of Class B Certificates evidencing the requisite portion
or percentage of the Certificate Balance have given any request, demand,
authorization, direction, notice, consent, or waiver hereunder or under any
Basic Document, Class B Certificates owned by the Issuer, any other obligor
upon the Class B Certificates, the Depositor, the Seller, the Servicer or any
Affiliate of any of the foregoing Persons shall be disregarded and deemed to
be excluded from the Certificate Balance except that, in determining whether
the Indenture Trustee and Owner Trustee shall be protected in relying on any
such request, demand, authorization, direction, notice, consent, or waiver,
only Class B Certificates that a Trustee Officer of the Indenture Trustee, if
applicable, and an Authorized Officer of the Owner Trustee with direct
responsibility for the administration of the Trust Agreement, if applicable,
knows to be so owned shall be so disregarded. Class B Certificates so owned
that have been pledged in good faith may be regarded as included in the
Certificate Balance if the pledgee establishes to the satisfaction of the
Indenture Trustee or the Owner Trustee, as applicable, the pledgee's right so
to act with respect to such Class B Certificates and that the pledgee is not
the Issuer, any other obligor upon the Certificates, the Depositor, the
Seller, the Servicer or any Affiliate of any of the foregoing Persons.

         "Certificate Distribution Account" shall mean the account established
and maintained as such pursuant to Section 4.1(c) of the Sale and Servicing
Agreement.

         "Certificate of Trust" shall mean the Certificate of Trust 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 Owner" shall mean, with respect to any Book-Entry
Certificate, the Person who is the beneficial owner of the Book-Entry
Certificate, 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).

                                 Appendix A-4
<PAGE>

         "Certificate Paying Agent" shall mean any paying agent or co-paying
agent appointed pursuant to Section 3.9 of the Trust Agreement and shall
initially be the Owner Trustee.

         "Certificate Pool Factor" shall mean, as of the close of business on
the last day of a Collection Period, a seven-digit decimal figure calculated
by the Servicer and equal to the Certificate Balance of the Class B
Certificates (after giving effect to any reductions therein to be made on the
immediately following Payment Date) divided by the Initial Certificate Balance
of the Class B Certificates. Each Certificate Pool Factor will be 1.0000000 as
of the Closing Date; thereafter, each Certificate Pool Factor will decline to
reflect reductions in the Certificate Balance of the Class B Certificates.

         "Certificate Register" and "Certificate Registrar" shall have the
respective meanings specified in Section 3.4 of the Trust Agreement.

         "Certificateholder" or "holder of a Certificate" shall mean a Person
in whose name a Certificate is registered in the Certificate Register.

         "Certificates" shall mean the Class B Certificates.

         "Class" shall mean (i) a class of Notes, which may be the Class A-1
Notes, the Class A-2 Notes, the Class A-3 Notes or the Class A-4 Notes or (ii)
the Class B Certificates.

         "Class A Notes" shall mean, collectively, the Class A-1 Notes, the
Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes.

         "Class A Noteholder" shall mean a Noteholder.

         "Class A Noteholders' Interest Carryover Shortfall" shall mean, for
any Payment Date, the excess of the Accrued Class A Note Interest for the
preceding Payment Date over the amount in respect of interest that is actually
paid to Noteholders of Class A Notes on such preceding Payment Date, plus
interest on the amount of interest due but not paid to Noteholders of Class A
Notes on the preceding Payment Date, to the extent permitted by law, at the
respective Note Interest Rates borne by such Class A Notes for the related
Interest Period.

         "Class A Noteholders' Monthly Accrued Interest" shall mean, with
respect to any Payment Date, the aggregate interest accrued for the related
Interest Period on the Class A-1 Notes, the Class A-2 Notes, the Class A-3
Notes and the Class A-4 Notes at the respective Note Interest Rate for such
Class in accordance with its terms on the outstanding principal amount of the
Notes of each such Class on the immediately preceding Payment Date or the
Closing Date, as the case may be, after giving effect to all payments of
principal to the holders of the Notes of such Class on or prior to such
preceding Payment Date.

         "Class A-1 Final Scheduled Payment Date" shall mean the March 2006
Payment Date.

         "Class A-1 Noteholder" shall mean the Person in whose name a Class
A-1 Note is registered on the Note Register.

                                 Appendix A-5
<PAGE>

         "Class A-1 Notes" shall mean the $229,000,000 aggregate initial
principal amount Class A-1 3.0272% Asset Backed Notes issued by the Trust
pursuant to the Indenture, substantially in the form of Exhibit A-1 to the
Indenture.

         "Class A-1 Rate" shall mean 3.0272% per annum. Interest with respect
to the Class A-1 Notes shall be computed on the basis of actual days elapsed
in the applicable Interest Period divided by 360 for all purposes of the Basic
Documents.

         "Class A-2 Final Scheduled Payment Date" shall mean the September
2007 Payment Date.

         "Class A-2 Noteholder" shall mean the Person in whose name a Class
A-2 Note is registered on the Note Register.

         "Class A-2 Notes" shall mean the $237,000,000 aggregate initial
principal amount Class A-2 3.55% Asset Backed Notes issued by the Trust
pursuant to the Indenture, substantially in the form of Exhibit A-2 to the
Indenture.

         "Class A-2 Rate" shall mean 3.55% per annum. Interest with respect to
the Class A-2 Notes shall be computed on the basis of a 360-day year
consisting of twelve 30-day months for all purposes of the Basic Documents.

         "Class A-3 Final Scheduled Payment Date" shall mean the July 2009
Payment Date.

         "Class A-3 Noteholder" shall mean the Person in whose name a Class
A-3 Note is registered on the Note Register.

         "Class A-3 Notes" shall mean the $393,000,000 aggregate initial
principal amount Class A-3 3.90% Asset Backed Notes issued by the Trust
pursuant to the Indenture, substantially in the form of Exhibit A-3 to the
Indenture.

         "Class A-3 Rate" shall mean 3.90% per annum. Interest with respect to
the Class A-3 Notes shall be computed on the basis of a 360-day year
consisting of twelve 30-day months for all purposes of the Basic Documents.

         "Class A-4 Final Scheduled Payment Date" shall mean the November 2011
Payment Date.

         "Class A-4 Noteholder" shall mean the Person in whose name a Class
A-4 Note is registered on the Note Register.

         "Class A-4 Notes" shall mean the $171,177,000 aggregate initial
principal amount Class A-4 4.13% Asset Backed Notes issued by the Trust
pursuant to the Indenture, substantially in the form of Exhibit A-4 to the
Indenture.

         "Class A-4 Rate" shall mean 4.13% per annum. Interest with respect to
the Class A-4 Notes shall be computed on the basis of a 360-day year
consisting of twelve 30-day months for all purposes of the Basic Documents.

                                 Appendix A-6
<PAGE>

         "Class B Certificateholder" shall mean the Person in whose name a
Class B Certificate is registered in the Certificate Register.

         "Class B Certificateholders' Interest Carryover Shortfall" shall
mean, with respect to any Payment Date, the excess of the Accrued Class B
Certificate Interest for the preceding Payment Date over the amount in respect
of interest that is actually paid to Class B Certificateholders on such
preceding Payment Date, plus thirty (30) days of interest on such excess, to
the extent permitted by law, at the Class B Rate.

         "Class B Certificateholders' Monthly Accrued Interest" shall mean,
with respect to any Payment Date, thirty (30) days of interest (or, in the
case of the first Payment Date, interest accrued from and including the
Closing Date to but excluding such Payment Date) at the Class B Rate on the
Certificate Balance on the immediately preceding Payment Date or the Closing
Date, as the case may be, after giving effect to all distributions allocable
to the reduction of the Certificate Balance made on or prior to such preceding
Payment Date.

         "Class B Certificates" shall mean the $31,861,598 aggregate initial
principal balance Class B 4.56% Asset Backed Certificates evidencing the
beneficial interest of a Class B Certificateholder in the property of the
Trust, substantially in the form of Exhibit A to the Trust Agreement;
provided, however, that the Owner Trust Estate has been pledged to the
Indenture Trustee to secure payment of the Notes and that the rights of the
Class B Certificateholders to receive distributions on the Class B
Certificates are subordinated to the rights of the Noteholders as described in
the Sale and Servicing Agreement, the Indenture and the Trust Agreement.

         "Class B Final Scheduled Payment Date" shall mean the November 2011
Payment Date.

         "Class B Rate" shall mean 4.56% per annum. Interest with respect to
the Class B Certificates shall be computed on the basis of a 360-day year
consisting of twelve 30-day months for all purposes of the Basic Documents.

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

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

         "Closing Date" shall mean March 15, 2005.

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

         "Collateral" shall have the meaning specified in the Granting Clause
of the Indenture.

         "Collection Account" shall mean the account or accounts established
and maintained as such pursuant to Section 4.1(a) of the Sale and Servicing
Agreement.

                                 Appendix A-7
<PAGE>

         "Collection Period" shall mean, with respect to the first Payment
Date, the period from and including the Cut-off Date to and including March
31, 2005 and, with respect to each subsequent Payment Date, the calendar month
preceding the calendar month in which the Payment Date occurs.

         "Collections" shall mean all amounts collected by the Servicer (from
whatever source) on or with respect to the Receivables.

         "Commission" shall mean the Securities and Exchange Commission.

         "Computer Tape" shall mean the computer tape generated by the Seller
which provides information relating to the Receivables and which was used by
the Seller in selecting the Receivables conveyed to the Trust hereunder.

         "Controlling Person" shall mean a Person, other than a Benefit Plan
Investor, that has discretionary authority or control with respect to the
assets of the Trust or who provides investment advice for a direct or indirect
fee with respect to those assets, or any affiliate of such a Person.

         "Corporate Trust Office" shall mean, (i) with respect to the Owner
Trustee, the principal corporate trust office of the Owner Trustee located at
300 Delaware Avenue, Wilmington, Delaware 19801 or at such other address as
the Owner Trustee may designate from time to time by notice to the
Certificateholders and the Depositor, or the principal corporate trust office
of any successor Owner Trustee (the address of which the successor Owner
Trustee will notify the Certificateholders and the Depositor); and (ii) with
respect to the Indenture Trustee, the principal corporate trust office of the
Indenture Trustee located at 4 New York Plaza, 6th Floor, New York, New York
10004, Attention: Institutional Trust Services/Global Debt--USAA 2005-1 or at
such other address as the Indenture Trustee may designate from time to time by
notice to the Noteholders and the Issuer, or the principal corporate trust
office of any successor Indenture Trustee (the address of which the successor
Indenture Trustee will notify the Noteholders and the Issuer).

         "Covered Plan" shall mean any "employee benefit plan" within the
meaning of Section 3(3) of ERISA, whether or not subject to Title I of ERISA,
including any U.S. governmental or non-U.S. pension plan, or any "plan"
subject to Section 4975 of the Code.

         "Cut-off Date" shall mean March 1, 2005.

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

         "Defaulted Receivable" shall mean a Receivable (i) that the Servicer
determines is unlikely to be paid in full or (ii) with respect to which at
least 5% of a Scheduled Payment is 120 or more days delinquent as of the end
of a calendar month.

         "Definitive Certificates" shall have the meaning specified in Section
3.13 of the Trust Agreement.

                                 Appendix A-8
<PAGE>

         "Definitive Notes" shall have the meaning specified in Section 2.11
of the Indenture.

         "Depositor" shall mean USAA Acceptance, LLC, a Delaware limited
liability company.

         "Determination Date" shall mean, with respect to any Collection
Period, the second Business Day immediately preceding the Payment Date
following such Collection Period.

         "Eligible Deposit Account" shall mean 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 U.S. 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.

         "Eligible Institution" shall mean either (i) the corporate trust
department of the Indenture Trustee or the Owner Trustee, as applicable; or
(ii) a depository institution organized under the laws of the U.S. or any one
of the states thereof or the District of Columbia (or any domestic branch of a
foreign bank), (1) which has either (A) a long-term unsecured debt rating of
at least "AA-" by Standard & Poor's and "Baa3" by Moody's or (B) a short-term
unsecured debt rating or certificate of deposit rating of "A-1+" by Standard &
Poor' and "Prime-1" by Moody's and (2) whose deposits are insured by the FDIC.

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

         "Event of Default" shall have the meaning specified in Section 5.1 of
the Indenture.

         "Event of Servicing Termination" shall mean an event specified in
Section 7.1 of the Sale and Servicing Agreement.

         "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

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

         "FDIC" shall mean the Federal Deposit Insurance Corporation.

         "Final Scheduled Payment Date" shall mean, with respect to (i) the
Class A-1 Notes, the Class A-1 Final Scheduled Payment Date, (ii) the Class
A-2 Notes, the Class A-2 Final Scheduled Payment Date, (iii) the Class A-3
Notes, the Class A-3 Final Scheduled Payment Date, (iv) the Class A-4 Notes,
the Class A-4 Final Scheduled Payment Date, and (v) the Class B Certificates,
the Class B Final Scheduled Payment Date.

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

                                 Appendix A-9
<PAGE>

         "Grant" shall mean to mortgage, pledge, bargain, sell, warrant,
alienate, remise, release, convey, assign, transfer, create, and to grant a
lien upon and a security interest in and right of set-off against, and to
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 principal and interest payments in
respect of the Collateral and all other monies payable thereunder, to give and
receive notices and other communications, to make waivers or other agreements,
to exercise all rights and options, to bring Proceedings in the name of the
granting party or otherwise, and generally to do and receive anything that the
granting party is or may be entitled to do or receive thereunder or with
respect thereto.

         "Indemnified Parties" shall have the meaning assigned to such term in
Section 7.2 of the Trust Agreement.

         "Indenture" shall mean the Indenture, dated as of March 15, 2005, by
and between the Trust and the Indenture Trustee.

         "Indenture Trust Estate" shall mean all money, instruments, rights
and other property that are subject or intended to be subject to the lien and
security interest of Indenture for the benefit of the Noteholders (including,
without limitation, all property and interests Granted to the Indenture
Trustee), including all proceeds thereof.

         "Indenture Trustee" shall mean JPMorgan Chase Bank, National
Association, a banking association organized under the laws of the United
States, not in its individual capacity but solely as Indenture Trustee under
the Indenture, or any successor Indenture Trustee under the Indenture.

         "Independent" shall mean, when used with respect to any specified
Person, that such Person (a) is in fact independent of the Issuer, any other
obligor on the Notes, the Seller and any Affiliate of any of the foregoing
Persons, (b) does not have any direct financial interest or any material
indirect financial interest in the Issuer, any such other obligor, the Seller
or any Affiliate of any of the foregoing Persons and (c) 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" shall mean 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, firm of certified public
accountants or other expert appointed by an Issuer Order and approved by the
Indenture Trustee in the exercise of reasonable care, and such opinion or
certificate shall state that the signer has read the definition of
"Independent" in the Indenture and that the signer is Independent within the
meaning thereof.

         "Initial Certificate Balance" shall mean $31,861,598.

         "Initial Pool Balance" shall mean $1,062,038,598.38.

                                Appendix A-10
<PAGE>

         "Insolvency Event" shall mean, with respect to any Person, (i) the
making of a general assignment for the benefit of creditors, (ii) the filing
of a voluntary petition in bankruptcy, (iii) being adjudged a bankrupt or
insolvent, or having had entered against such Person an order for relief in
any bankruptcy or insolvency proceeding, (iv) the filing by such Person of a
petition or answer seeking reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief under any statute,
law or regulation, (v) the filing by such Person of an answer or other
pleading admitting or failing to contest the material allegations of a
petition filed against such Person in any proceeding specified in (vii) below,
(vi) seeking, consent to or acquiescing in the appointment of a trustee,
receiver or liquidator of such Person or of all or any substantial part of the
assets of such Person or (vii) the failure to obtain dismissal within 60 days
of the commencement of any proceeding against such Person seeking
reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief under any statute, law or regulation, or the
entry of any order appointing a trustee, liquidator or receiver of such Person
or of such Person's assets or any substantial portion thereof.

         "Interest Period" shall mean, with respect to any Payment Date (i)
with respect to the Class A-1 Notes, from and including the Closing Date (in
the case of the first Payment Date) or from and including the most recent
Payment Date on which interest has been paid to but excluding the following
Payment Date and (ii) with respect to each Class of Notes (other than the
Class A-1 Notes) and the Certificates, from and including the Closing Date (in
the case of the first Payment Date) or from and including the 15th day of the
calendar month preceding each Payment Date to but excluding the 15th day of
the calendar month of such Payment Date.

         "IRS" shall mean the Internal Revenue Service.

         "Issuer" shall mean the Trust unless a successor replaces it and,
thereafter, shall mean the successor.

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

         "Lien" shall mean a security interest, lien, charge, pledge, equity,
or encumbrance of any kind other than, in respect of a Receivable, tax liens,
mechanics' liens, and any liens which attach to the respective Receivable by
operation of law.

         "Liquidation Proceeds" shall mean with respect to any Receivable (a)
insurance proceeds received by the Servicer and (b) monies collected by the
Servicer on a Defaulted Receivable from whatever source, including but not
limited to proceeds of Financed Vehicles after repossession, net of any
payments required by law to be remitted to the Obligor.

         "Monthly Remittance Condition" shall mean either (a) the Servicer
obtains a short-term certificate of deposit rating of the Servicer from
Standard & Poor's and Moody's of "A-1+" and "Prime-1," respectively, or (b)
the Servicer provides the Indenture Trustee with a letter from each Rating
Agency to the effect that the current ratings assigned to the Securities by
such Rating Agency will not be adversely affected by the remittance of
Collections on a monthly, rather than a daily, basis.

         "Moody's" shall mean Moody's Investors Service, Inc.

                                Appendix A-11
<PAGE>

         "Note Depository Agreement" shall mean collectively (i) the Letter of
Representations, dated as of March 15, 2005 by and among the Issuer, JPMorgan
Chase Bank, National Association, as agent and The Depository Trust Company
regarding the Notes and (ii) the Letter of Representations, dated as of March
15, 2005 by and among the Issuer, Wachovia Bank of Delaware, National
Association, as agent and The Depository Trust Company regarding the
Certificates.

         "Note Interest Rate" shall mean the Class A-1 Rate, the Class A-2
Rate, the Class A-3 Rate or the Class A-4 Rate, as applicable.

         "Note Owner" shall mean, with respect to any 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 Paying Agent" shall mean 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 payments to and distributions from the Collection Account (including the
Principal Distribution Account), including payment of principal of or interest
on the Notes on behalf of the Issuer.

         "Note Pool Factor" shall mean, with respect to each Class of Notes as
of the close of business on the last day of a Collection Period, a seven-digit
decimal figure calculated by the Servicer and equal to the outstanding
principal balance of such Class of Notes (after giving effect to any
reductions thereof to be made on the immediately following Payment Date)
divided by the original outstanding principal balance of such Class of Notes.
The Note Pool Factor will be 1.0000000 as of the Closing Date; thereafter, the
Note Pool Factor will decline to reflect reductions in the outstanding
principal amount of such Class of Notes.

         "Note Register" and "Note Registrar" shall have the respective
meanings specified in Section 2.5 of the Indenture.

         "Noteholder" or "holder of a Note" shall mean the Person in whose
name a Note is registered on the Note Register.

         "Notes" shall mean the Class A-1 Notes, the Class A-2 Notes, the
Class A-3 Notes and the Class A-4 Notes, collectively.

         "Obligor" on a Receivable shall mean the purchaser or co-purchasers
of the Financed Vehicle or any other Person who owes payments under the
Receivable.

         "Officer's Certificate" shall mean (i) with respect to the Trust, a
certificate signed by any Authorized Officer of the Trust and (ii) with
respect to the Depositor, the Seller or the Servicer, a certificate signed by
the chairman of the board, the president, any executive or senior vice
president, any vice president, the treasurer or the controller of the
Depositor or the Servicer, as applicable.

                                Appendix A-12
<PAGE>

         "Opinion of Counsel" shall mean a written opinion of counsel which
counsel shall be acceptable to the Indenture Trustee, the Owner Trustee or the
Rating Agencies, as applicable.

         "Optional Purchase Percentage" shall mean 10%.

         "Outstanding" shall mean with respect to the Securities, as of the
date of determination, all Securities theretofore authenticated and delivered
under the Indenture or the Trust Agreement, as applicable, except:

                           (a) Securities theretofore (i) cancelled by the
                  Note Registrar or the Certificate Registrar, as applicable,
                  or (ii) delivered to the Note Registrar or the Certificate
                  Registrar, as applicable, for cancellation;

                           (b) Securities or portions thereof the payment for
                  which money in the necessary amount has been theretofore
                  deposited with (i)in the case of the Notes, the Indenture
                  Trustee or any Note Paying Agent in trust for the
                  Noteholders of such Notes (provided, however, that if such
                  Notes are to be prepaid, notice of such prepayment has been
                  duly given pursuant to the Indenture or provision for such
                  notice has been made, satisfactory to the Indenture Trustee)
                  or (ii) in the case of the Certificates, the Owner Trustee
                  or any Certificate Paying Agent in trust for the
                  Certificateholders of such Certificates (provided, however,
                  that if such Certificates are to be prepaid, notice of such
                  prepayment has been duly given pursuant to the Trust
                  Agreement or provision for such notice has been made,
                  satisfactory to the Owner Trustee); and

                           (c) Securities in exchange for or in lieu of which
                  other Securities have been authenticated and delivered
                  pursuant to the Indenture or the Trust Agreement, as
                  applicable, unless proof satisfactory to the Indenture
                  Trustee or the Owner Trustee, as applicable, is presented
                  that any such Securities are held by a protected purchaser;

provided, that in determining whether the holders of Notes or Certificates
evidencing the requisite principal amount of the Notes Outstanding or
Certificates Outstanding have given any request, demand, authorization,
direction, notice, consent, or waiver under any Basic Document, Securities
owned by the Issuer, any other obligor upon the Securities, the Depositor, the
Seller, the Servicer 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 or Owner Trustee, as applicable, shall be
protected in relying on any such request, demand, authorization, direction,
notice, consent, or waiver, only (i) Notes that a Responsible Officer of the
Indenture Trustee knows to be so owned and (ii) Certificates that a
Responsible Officer of the Owner Trustee knows to be so owned, shall be so
disregarded; provided, however, if the Issuer, any other obligor upon the
Securities, the Depositor, the Seller, the Servicer or any Affiliate of any of
the foregoing Persons owns an entire Class of Securities, such Securities
shall be deemed to be Outstanding. Notes owned by the Issuer, any other
obligor upon the Notes, the Depositor, the Seller, the Servicer or any
Affiliate of any of the foregoing Persons that have been pledged in good faith
may be regarded as Outstanding if the pledgee establishes to the satisfaction
of the Indenture Trustee the pledgee's right so to act with respect to such
Notes and that the pledgee is

                                Appendix A-13
<PAGE>

not the Issuer, any other obligor upon the Notes, the Depositor, the Seller,
the Servicer or any Affiliate of any of the foregoing Persons. Certificates
owned by the Issuer, any other obligor upon the Certificates, the Seller, the
Servicer or any Affiliate of any of the foregoing Persons that have been
pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Owner Trustee the pledgee's right so to
act with respect to such Certificates and that the pledgee is not the Issuer,
any other obligor upon the Certificates, the Depositor, the Seller, the
Servicer or any Affiliate of any of the foregoing Persons.

         "Outstanding Advances" on the Receivables shall mean the sum, as of
the close of business on the last day of a Collection Period, of all Advances
as reduced as provided in Section 4.4(a) of the Sale and Servicing Agreement.

         "Owner Trustee" shall mean Wachovia Bank of Delaware, National
Association, a national banking association, not in its individual capacity
but solely as Owner Trustee under the Trust Agreement, or any successor Owner
Trustee under the Trust Agreement.

         "Owner Trust Estate" shall mean all right, title and interest of the
Trust in, to and under the property and rights assigned to the Trust pursuant
to Article II of the Sale and Servicing Agreement.

         "Payment Date" shall mean the fifteenth (15th) day of each calendar
month or, if such day is not a Business Day, the next succeeding Business Day.

         "Permitted Investments" shall mean, on any date of determination,
book-entry securities, negotiable instruments or securities represented by
instruments in bearer or registered form with maturities not exceeding the
Business Day preceding the next Payment Date which evidence:

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

                           (b) demand deposits, time deposits or certificates
                  of deposit of any depository institution or trust company
                  incorporated under the laws of the United States of America
                  or any state thereof (or 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
                  granted thereby;

                           (c) 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 granted thereby;

                           (d) investments in money market funds having a
                  rating from each of the Rating Agencies in the highest
                  investment category granted thereby (including

                                Appendix A-14
<PAGE>

                  funds for which the Indenture Trustee or the Owner Trustee
                  or any of their respective Affiliates is investment
                  manager or advisor);

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

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

                           (g) any other investment with respect to which the
                  Issuer or the Servicer has received written notification
                  from the Rating Agencies that the acquisition of such
                  investment as a Permitted Investment will not result in a
                  withdrawal or downgrading of the ratings on the Notes or the
                  Certificates.

         "Person" shall mean any individual, corporation, limited liability
company, estate, partnership, joint venture, association, joint stock company,
trust, unincorporated organization, or government or any agency or political
subdivision thereof.

         "Plan" means an employee benefit plan (as defined in Section 3(3) of
ERISA) that is subject to Title I of ERISA, a plan (as defined in Section
4975(e)(1) of the Code) and any entity whose underlying assets include plan
assets by reason of a plan's investment in the entity or otherwise.

         "Pool Balance" shall mean on any date of determination, the aggregate
outstanding Principal Balance of the Receivables (exclusive of Purchased
Receivables and Defaulted Receivables) as of such date of determination.

         "Pool Factor" as of the last day of a Collection Period shall mean a
seven-digit decimal figure equal to the Pool Balance at that time divided by
the Initial Pool Balance.

         "Predecessor Note" shall mean, 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 purposes of this definition, any
Note authenticated and delivered under Section 2.6 of the Indenture in lieu of
a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the
same debt as the mutilated, lost, destroyed or stolen Note.

         "Prepayment Date" shall mean (i) with respect to a prepayment of the
Certificates pursuant to Section 8.2(a) of the Trust Agreement or a
distribution to Certificateholders pursuant to Section 8.1(c) of the Trust
Agreement, the Payment Date specified by the Owner Trustee pursuant to said
Section 8.2(a) or 8.1(c), as applicable, and (ii) with respect to a prepayment
of the Notes pursuant to Section 10.1(a) of the Indenture, the Payment Date
specified by the Servicer pursuant to Section 10.1(a) or (b) of the Indenture,
as applicable.

                                Appendix A-15
<PAGE>

         "Prepayment Price" shall mean (i) in the case of the Certificates, an
amount equal to the Certificate Balance plus accrued and unpaid interest
thereon at the applicable Class B Rate plus interest on any overdue interest
at the applicable Class B Rate (to the extent lawful) to but excluding the
Prepayment Date and (ii) in the case of a Class of Notes to be prepaid, an
amount equal to the unpaid principal amount of such Class of Notes plus
accrued and unpaid interest thereon at the applicable Note Interest Rate plus
interest on any overdue interest at the applicable Note Interest Rate (to the
extent lawful) to but excluding the Prepayment Date.

         "Priority Note Principal Payment" shall mean, for each Payment Date,
a payment of principal equal to the excess, if any, of the aggregate principal
amount of the Class A Notes (before giving effect to any payments on that
Payment Date) over the Pool Balance at the end of the related Collection
Period.

         "Principal Balance" of a Receivable, as of any date of determination,
shall mean the Amount Financed minus that portion of all payments actually
received on or prior to such date allocable to principal.

         "Principal Distribution Account" shall mean the administrative
sub-account of the Collection Account established and maintained as such
pursuant to Section 4.1(b) of the Sale and Servicing Agreement.

         "Proceeding" shall mean any suit in equity, action at law or other
judicial or administrative proceeding.

         "Prospectus" shall have the meaning specified in the Underwriting
Agreement.

         "Prospectus Supplement" shall have the meaning specified in the
Underwriting Agreement.

         "Purchase Amount" with respect to a Purchased Receivable shall mean
the sum, as of the last day of the related Collection Period, of the Principal
Balance thereof plus the accrued interest thereon at the weighted average of
the Note Interest Rates and the Class B Rate through the end of the related
Collection Period.

         "Purchased Receivable" shall mean a Receivable purchased as of the
close of business on the last day of the respective Collection Period by the
Servicer pursuant to Section 3.7 of the Sale and Servicing Agreement, by the
Seller pursuant to Section 2.3 of the Sale and Servicing Agreement or by the
Servicer pursuant to Section 8.1 of the Sale and Servicing Agreement.

         "Rating Agency" shall mean each of the nationally recognized
statistical rating organizations designated by the Depositor to provide a
rating on the Notes or the Certificates which is then rating such Notes or
Certificates. If no such organization or successor is any longer in existence,
"Rating Agency" shall be a nationally recognized statistical rating
organization or other comparable Person designated by the Depositor, notice of
which designation shall be given to the Indenture Trustee, the Owner Trustee
and the Servicer.

         "Rating Agency Condition" shall mean, with respect to any action,
that each of the Rating Agencies shall have notified the Servicer, the
Depositor, the Owner Trustee and the

                                Appendix A-16
<PAGE>

Indenture Trustee in writing that such action will not result in a reduction
or withdrawal of the then current ratings of the Notes or the Certificates.

         "Receivable" shall mean a motor vehicle installment loan contract
listed on Schedule A to the Receivables Purchase Agreement and all proceeds
thereof and payments thereunder, which Receivable shall not have been released
by the Indenture Trustee and the Owner Trustee from the Trust.

         "Receivable Files" shall mean the documents specified in Section 2.4
of the Sale and Servicing Agreement.

         "Receivables Purchase Agreement" shall mean the Receivables Purchase
Agreement, dated as of March 1, 2005, by and between the Bank, as seller, and
the Depositor, as purchaser.

         "Record Date" shall mean, with respect to any Payment Date or
Prepayment Date and any Book-Entry Security, the close of business on the day
prior to such Payment Date or Prepayment Date or, with respect to any
Definitive Note or Definitive Certificate, the last day of the month preceding
the month in which such Payment Date or Prepayment Date occurs.

         "Recoveries" shall mean, with respect to any Collection Period, all
amounts received by the Servicer with respect to any Defaulted Receivable
during any Collection Period following the Collection Period in which such
Receivable became a Defaulted Receivable, net of any fees, costs and expenses
incurred by the Servicer in connection with the collection of such Receivable
and any payments required by law to be remitted to the Obligor.

         "Registered Noteholder" shall mean the Person in whose name a Note is
registered on the Note Register on the applicable Record Date.

         "Registration Statement" shall mean Registration Statement No.
333-122759 filed by the Depositor with the Securities and Exchange Commission
in the form in which it became effective on February 23, 2005.

         "Regular Principal Distribution Amount" shall mean, with respect to
any Payment Date, an amount equal to the sum of (i) the Collections on the
Receivables received during the related Collection Period and allocable to
principal and (ii) the aggregate Principal Balance (net of Liquidation
Proceeds received during the related Collection Period applied to principal)
of all Receivables that became designated as Defaulted Receivables in such
Collection Period; provided, however, that the Regular Principal Distribution
Amount shall not exceed the sum of the aggregate outstanding principal amount
of all of the Notes and the Certificate Balance on such Payment Date.

         "Related Agreements" shall have the meaning specified in the recitals
to the Administration Agreement.

         "Representatives" shall mean Banc of America Securities LLC and
Citigroup Global Markets Inc., as representatives of the several Underwriters.

                                Appendix A-17
<PAGE>

         "Repurchase Event" shall have the meaning specified in Section 7.02
of the Receivables Purchase Agreement.

         "Required Rating" shall mean a rating on (i) short-term unsecured
debt obligations of "Prime-1" by Moody's and (ii) short-term unsecured debt
obligations of "A-1+" by Standard & Poor's; and any requirement that
short-term unsecured debt obligations have the "Required Rating" shall mean
that such short-term unsecured debt obligations have the foregoing required
ratings from each of such Rating Agencies.

         "Reserve Account" shall mean the account established and maintained
as such pursuant to Section 4.7(a) of the Sale and Servicing Agreement.

         "Reserve Account Property" shall have the meaning specified in
Section 4.7(a) of the Sale and Servicing Agreement.

         "Reserve Account Excess Amount" shall mean, with respect to any
Payment Date, an amount equal to the excess, if any, of (i) the amount of cash
or other immediately available funds in the Reserve Account on such Payment
Date (prior to giving effect to any withdrawals therefrom relating to such
Payment Date) over (ii) the Specified Reserve Balance with respect to such
Payment Date.

         "Reserve Initial Deposit" shall mean $9,027,328.09.

         "Sale and Servicing Agreement" shall mean the Sale and Servicing
Agreement, dated as of March 1, 2005, by and among the Trust, as issuer, the
Depositor, and the Bank, as seller and servicer.

         "Schedule of Receivables" shall mean the list of Receivables attached
as Schedule A to the Receivables Purchase Agreement, the Sale and Servicing
Agreement and the Indenture (which Schedules may be in the form of microfiche,
disk or other means acceptable to the Indenture Trustee).

         "Scheduled Payment" shall mean, for any Collection Period for any
Receivable, the amount indicated in such Receivable as required to be paid by
the Obligor in such Collection Period (without giving effect to deferments of
payments pursuant to Section 3.2 of the Sale and Servicing Agreement or any
rescheduling in any insolvency or similar proceedings).

         "Secretary of State" shall mean the Secretary of State of the State
of Delaware.

         "Securities" shall mean the Notes and the Certificates, collectively.

         "Securities Act" shall mean the Securities Act of 1933, as amended.

         "Securityholders" shall mean the Noteholders and the
Certificateholders, collectively.

         "Seller" shall mean the Bank as the seller of the Receivables under
the Receivables Purchase Agreement and each successor to the Bank.

                                Appendix A-18
<PAGE>

         "Servicer" shall mean the Bank as the servicer of the Receivables
under the Sale and Servicing Agreement, and each successor to the Bank (in the
same capacity) pursuant to Section 6.3 of the Sale and Servicing Agreement.

         "Servicer's Certificate" shall mean a certificate completed and
executed by the Servicer by the chairman of the board, the president, any
executive vice president, any vice president, the treasurer, any assistant
treasurer, the controller, or any assistant controller of the Servicer
pursuant to Section 3.9 of the Sale and Servicing Agreement.

         "Servicing Fee" shall mean, with respect to a Collection Period, the
fee payable to the Servicer for services rendered during such Collection
Period, which shall be equal to one-twelfth of the Servicing Fee Rate
multiplied by the Pool Balance as of the first day of the Collection Period.

         "Servicing Fee Rate" shall mean 0.50% per annum.

         "Similar Laws" shall mean federal, state or local laws that impose
requirements similar to ERISA or Section 4975 of the Code.

         "Simple Interest Method" shall mean the method of allocating a fixed
level payment to principal and interest, pursuant to which the portion of such
payment that is allocated to interest is equal to the amount accrued from the
date of the preceding payment to the date of the current payment.

         "Specified Reserve Balance" shall mean for a Payment Date the greater
of (a) 1.25% of the Pool Balance as of the last day of the related Collection
Period and (b) 0.50% of the Pool Balance as of the Cut-off Date, but in any
event shall not be greater than the sum of the aggregate principal balance of
the Outstanding Notes and the principal balance of the Certificates as of the
current Payment Date. The Specified Reserve Balance may be reduced to a lesser
amount as determined by the Depositor, if each of Moody's and Standard &
Poor's shall have confirmed in writing to the Indenture Trustee that such
action will not result in a withdrawal or reduction in any of its ratings of
the Securities.

         "Standard & Poor's" shall mean Standard & Poor's Ratings Services, a
division of The McGraw-Hill Companies, Inc.

         "State" shall mean any state or commonwealth of the United States of
America, or the District of Columbia.

         "Statutory Trust Statute" shall mean Chapter 38 of Title 12 of the
Delaware Code, 12 Delaware Code ss. 3801 et seq., as amended.

         "Successor Servicer" shall mean an institution appointed as successor
Servicer pursuant to Section 7.2 of the Sale and Servicing Agreement.

         "Supplemental Servicing Fee" shall mean the fee payable to the
Servicer for certain services rendered during the respective Collection
Period, determined pursuant to and defined in Section 3.8 of the Sale and
Servicing Agreement.

                                Appendix A-19
<PAGE>

         "Total Required Payment" shall mean, with respect to any Payment
Date, the sum of the Servicing Fee and all unpaid Servicing Fees from prior
Collection Periods, the Accrued Class A Note Interest, the Accrued Class B
Certificate Interest and the Regular Principal Distribution Amount; provided,
however, that on any Final Scheduled Payment Date the amount required to be
paid pursuant to Section 4.6(c)(vi) of the Sale and Servicing Agreement shall
be included in the Total Required Payment; provided, further, that following
the occurrence and during the continuation of an Event of Default, on any
Payment Date until the Payment Date on which the outstanding principal amount
of all the Securities has been paid in full, the Total Required Payment shall
mean the sum of the fees, expenses and indemnification of the Indenture
Trustee and the Owner Trustee, the Servicing Fee and all unpaid Servicing Fees
from prior Collection Periods, the Accrued Class A Note Interest, the Accrued
Class B Certificate Interest and the amount necessary to reduce the
outstanding principal amount of all the Securities to zero.

         "Transfer Date" shall mean the Closing Date.

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

         "Trust" shall mean USAA Auto Owner Trust 2005-1, a Delaware statutory
trust governed by the Trust Agreement.

         "Trust Accounts" shall have the meaning specified in Section 4.7(a)
of the Sale and Servicing Agreement.

         "Trust Agreement" shall mean the Amended and Restated Trust Agreement
of the Trust dated as of March 15, 2005, by and between the Depositor and the
Owner Trustee, as amended and/or restated from time to time.

         "Trust Indenture Act" or "TIA" shall mean the Trust Indenture Act of
1939, as amended, unless otherwise specifically provided.

         "Trust Property" shall mean, collectively, (i) the Receivables; (ii)
monies received thereunder on or after the Cut-off Date; (iii) the security
interests in the Financed Vehicles granted by Obligors pursuant to the
Receivables and any other interest of the Issuer in the Financed Vehicles;
(iv) rights to receive proceeds with respect to the Receivables from claims on
any theft, physical damage, credit life, credit disability, or other insurance
policies covering Financed Vehicles or Obligors; (v) all of the Seller's
rights to the Receivable Files; (vi) the Trust Accounts and all amounts,
securities, investments, investment property and other property deposited in
or credited to any of the foregoing, all security entitlements relating to the
foregoing and all proceeds thereof; (vii) the Receivables Purchase Agreement;
(viii) payments and proceeds with respect to the Receivables held by the
Servicer; (ix) all property (including the right to receive Liquidation
Proceeds) securing a Receivable (other than a Receivable repurchased by the
Servicer or purchased by the Seller); (x) rebates of premiums and other
amounts relating to insurance policies and other items financed under the
Receivables in effect as of the Cut-off Date; and (xi) all present and future
claims, demands, causes of action and choses

                                Appendix A-20
<PAGE>

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 thereof,
voluntary or involuntary, into cash or other liquid property, all cash
proceeds, accounts, accounts receivable, notes, drafts, acceptances, chattel
paper, checks, deposit accounts, insurance proceeds, condemnation awards,
rights to payment of any and every kind and other forms of obligations and
receivables, instruments and other property which at any time constitute all
or part of or are included in the proceeds of any of the foregoing.

         "Trustee Officer" shall mean, with respect to the Indenture Trustee,
any officer within the Corporate Trust Office of the Indenture Trustee 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, in each case having direct responsibility for the
administration of the Indenture and the other Basic Documents on behalf of the
Indenture Trustee and, with respect to the Owner Trustee, any officer within
the Corporate Trust Office of the Owner Trustee with direct responsibility for
the administration of the Trust Agreement and the other Basic Documents on
behalf of the Owner Trustee.

         "UCC" shall mean the Uniform Commercial Code as in effect in any
relevant jurisdiction.

         "Underwriters" shall mean the underwriters named in Schedule I to the
Underwriting Agreement.

         "Underwriting Agreement" shall mean the Underwriting Agreement, dated
March 7, 2005 among the Seller, the Depositor and the Representatives.

         "Underwritten Securities" shall mean the Notes.

                                Appendix A-21

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