Document:

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                                                                     EXHIBIT 4.4

                               CUSTODIAL AGREEMENT

         CUSTODIAL AGREEMENT, dated as of December 1, 2000 (as amended or
otherwise modified from time to time, this "Agreement"), among PF FUNDING II,
LLC, as Transferor (the "Transferor"), PEOPLEFIRST.COM VEHICLE RECEIVABLES OWNER
TRUST 2000-2, as Issuer (the "Issuer"), FINANCIAL SECURITY ASSURANCE INC., as
Insurer (the "Insurer"), and WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION,
as Indenture Trustee (the "Indenture Trustee") and PEOPLEFIRST FINANCE, LLC, as
Custodian (the "Custodian").

         A. Pursuant to the terms of the Sale and Servicing Agreement dated as
of December 1, 2000, among the Issuer, the Transferor, PeopleFirst Finance, LLC,
as Seller and Servicer (the "Seller" or "Servicer"), ML Asset Backed
Corporation, as Depositor and the Indenture Trustee (the "Sale and Servicing
Agreement"), the Seller will sell to the Transferor all of its right, title and
interest in the Receivables.

         B. Pursuant to the terms of the Sale and Servicing Agreement (i) the
Transferor will transfer all of its right, title and interest in the Receivables
to the Depositor and (ii) the Depositor will transfer all of its right, title
and interest in the Receivables to the Issuer.

         C. Pursuant to the Indenture dated as of December 1, 2000, between the
Issuer and the Indenture Trustee (the "Indenture"), the Issuer will pledge to
the Indenture Trustee all of its right, title and interest in the Receivables.

         D. The Custodian is a California limited liability company; and

         E. Pursuant to terms of the Sale and Servicing Agreement, the Servicer
intends to deliver to the Custodian certain documents specified in this
Agreement (collectively, the "Collateral"), and the Servicer desires the
Custodian take possession of the Collateral as the custodian for, and bailee of,
(i) the Indenture Trustee for the benefit of the Noteholders and the Insurer,
or, (ii) after all unpaid principal and interest on the Notes and all amounts
owing to the Insurer have been paid in full, the Owner Trustee for the benefit
of the Certificateholders, in accordance with the terms and conditions of this
Agreement in order to perfect the security interest of Indenture Trustee or the
Owner Trustee, as applicable; and

         The parties, intending to be legally bound, hereby agree as follows:

         1. Definitions. Terms not defined in this Agreement shall have the
respective meanings assigned to them in the Sale and Servicing Agreement or the
Indenture. The following terms shall have the following meanings when used in
this Agreement:

         "Authorized Representatives" shall have the meaning set forth in
Section 19.

         "Certification" has the meaning set forth in Section 4.

         "Collateral" has the meaning set forth in the Recitals hereto.

         "Contract" means a motor vehicle loan evidenced by a note and security
agreement.

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         "Deficiency" means a failure of a document to correspond to the
information on the Schedule of Receivables or the absence of a required document
from a Custodian's Receivable File pursuant to Section 2.

         "FDI" means [                 ].

         "Indenture" has the meaning assigned to such term in the Recitals
hereto.

         "Insurance Policy" means with respect to a Contract and Financed
Vehicle, any insurance policy required to be maintained by the Obligor that
covers physical damage to and theft of the Financed Vehicle or any liability
arising out of the use of such Financed Vehicle.

         "Lien Certificate" means with respect to a Financed Vehicle, an
original certificate of title, certificate of lien or other notification
(electronic or otherwise) issued by the registrar of titles of the applicable
state to a secured party which indicates that the lien of the secured party on
the Financed Vehicle is recorded on the original certificate of title. In any
jurisdiction in which the original certificate of title is required to be given
to the Obligor, the term "Lien Certificate" shall mean only a certificate or
notification (electronic or otherwise) issued to a secured party. Notification
of an electronic recordation of FDI indicating that the lien of the secured
party on the Financed Vehicle is recorded on the original Certificate of Title
shall be deemed to satisfy this definition.

         "PeopleFirst" means PeopleFirst Finance, LLC.

         "Receivable Files" means, with respect to a Financed Vehicle, those
documents listed in Section 3 of this Agreement that are delivered to the
Custodian and all documents subsequently delivered to the Custodian pursuant to
the last sentence of Section 3.

         "Sale and Servicing Agreement" has the meaning assigned to such term in
the Recitals hereto.

         "Schedule of Receivables" means the schedule of Receivables, in both
hard copy and floppy disk, to be annexed hereto as Exhibit 5, such schedule
setting forth the following information with respect to each Receivable:

         (i)      the loan number and name of the related Obligor;

         (ii)     the original principal amount;

         (iii)    the Initial Cutoff Date or the related Subsequent Cutoff Date,
                  as applicable;

         (iv)     the principal amount outstanding as of the Initial Cutoff Date
                  or the related Subsequent Cutoff Date, as applicable;

         (v)      the interest rate (APR);

         (vi)     the original term to maturity;

         (vii)    the remaining term to maturity as of the Initial Cutoff Date
                  or the related Subsequent Cutoff Date, as applicable; and

         (viii)   the day of the month on which the scheduled monthly payment of
                  principal and interest are required to be made.

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         2. Appointment of Custodian. The Transferor, the Indenture Trustee, the
Issuer and the Insurer hereby revocably appoint the Custodian, and the Custodian
hereby accepts such appointment, to act exclusively as the agent for the
Indenture Trustee, on behalf of the Noteholders and the Insurer until the Notes
are paid in full, the Insurance and Indemnity Agreement has expired by its terms
and all amounts owing to the Insurer have been paid in full and thereafter on
behalf of the Issuer as custodian of the documents and instruments listed in
Section 3 hereof.

         In performing its duties hereunder, the Custodian agrees to act with
reasonable care, using that degree of skill and attention that a commercial bank
acting in the capacity of a custodian would exercise with respect to files
relating to comparable automotive or other receivables that it services or holds
for itself or others.

         3. Delivery of Receivable Files. The Custodian hereby certifies that it
has received as custodian for, and bailee of (i) the Indenture Trustee for the
benefit of the Noteholders and the Insurer or (ii) after all unpaid principal
and interest on the Notes and all amounts owing to the Insurer have been paid in
full and the Insurance and Indemnity Agreement has expired by its terms, the
Issuer, the following documents pertaining to each of the Receivables identified
in a Schedule of Receivables for the initial transfer and each subsequent
transfer, a copy of which Schedule of Receivables shall be provided to the
Custodian, in a form acceptable to the Custodian, on computer readable disk or
via electronic transfer by the Servicer:

                  (a) the executed cancelled draft for the related Contract;

                  (b) a copy of the Note and Security Agreement for such
Contract;

                  (c) the original certificate of title or, if not yet received,
evidence that an application therefor has been submitted with the appropriate
authority, a guaranty of title from a dealer or such other document (electronic
or otherwise, as used in the applicable jurisdiction) that the Servicer shall
have on file in accordance with the Servicer's customary procedures, evidencing
the security interest of the originator;

                  (d) the originals of all assumption, consolidation, extension,
modification or waiver agreements, if any, relating to such Receivable;

                  (e) any other documents that the Servicer shall keep on file,
in accordance with its customary procedures, or reasonably required by the
Issuer, from time to time to be kept on file, relating to a Receivable, the
related Obligor or the related Financed Vehicle; and

                  (f) any additional original loan documents evidencing any
assumption, consolidation, extension, modification or waiver of a Receivable
approved by the Servicer.

         4. Certification. The Custodian shall deliver, on the Closing Date and
on each Subsequent Transfer Date, to the Indenture Trustee a certification (the
"Certification"), in substantially the form annexed hereto as Exhibit 1, to the
effect that (except as described on the attached exception report) the Custodian
has received a Custodian's Receivable File for each Receivable listed on the
related Schedule of Receivables and it has received (i) all documents required
to be delivered to it pursuant to Section 3 of this Agreement in its possession,
(ii) such documents have been reviewed by it and have not been mutilated,
damaged, torn or otherwise physically altered and relate to such Receivable
identified on the Schedule of Receivables, (iii) based on its examination and
only as to the foregoing documents, the information set forth in items (i),
(ii), (v) and (vi) of the definition of Schedule of Receivables respecting such
Receivable accurately reflects the information on the Schedule of Receivables
and (iv) based on its

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examination, the Contract is an executed original counterpart. The Custodian
shall include in the Certification any Deficiencies revealed in such review
attached as an exception report to the Certification.

         5. Review of Items Constituting the Receivable Files.

                  (a) Prior to the Closing Date and each Subsequent Transfer
Date, as applicable, the Custodian shall cause the Indenture Trustee or such
other person acceptable to the Insurer to conduct a physical inventory of the
Receivable Files in order to confirm that the Issuer is in possession of a
Receivable File for each Receivable listed in the Schedule of Receivables and to
perform a limited review of at least [300] of the Receivable Files relating to
the Receivables transferred on the Closing Date and at least [100] of the
Receivable Files relating to the Subsequent Receivables transferred on each
Subsequent Transfer Date to determine that each Receivable File so reviewed
includes (i) the executed cancelled check for the related Contract; (ii) a copy
of the Note and Security Agreement for such Contract; (iii) the original
certificate of title or, if not yet received, evidence that an application
therefor has been submitted with the appropriate authority, a guaranty of title
from a dealer or such other document (electronic or otherwise, as used in the
applicable jurisdiction) that the Servicer shall have on file in accordance with
the Servicer's customary procedures, evidencing the security interest of the
originator; (iv) the originals of all assumption, consolidation, extension,
modification or waiver agreements, if any, relating to such Receivable; (v) any
other documents that the Servicer shall keep on file, in accordance with its
customary procedures, or reasonably required by the Issuer, from time to time to
be kept on file, relating to a Receivable, the related Obligor or the related
Financed Vehicle; and (vi) any additional original loan documents evidencing any
assumption, consolidation, extension, modification or waiver of a Receivable
approved by the Servicer. As evidence of the performance of such inventory and
review, prior to the Closing Date and each Subsequent Transfer Date, as
applicable, the Indenture Trustee or such other person shall execute and deliver
to (i) the Indenture Trustee for the benefit of the Noteholders and the Insurer,
or, (ii) after all unpaid principal and interest on the Notes and all amounts
owing to the Insurer have been paid in full and the Insurance and Indemnity
Agreement has expired by its terms, the Issuer and the Owner Trustee, on behalf
of the Issuer, an Acknowledgment in the form of Exhibit 6 hereto. If such review
reveals, in the Insurer's opinion, an unsatisfactory number of missing items the
Insurer in its sole discretion may require a full review of every Receivable
File by the Indenture Trustee or such other party acceptable to the Insurer.

                  (b) On or before the Closing Date and each Subsequent Transfer
Date, as applicable, the Custodian shall deliver to the Indenture Trustee a list
of all Receivables with respect to which a Lien Certificate, showing the Issuer
as secured party, was not included in the related Receivable File as of the
Closing Date or such Subsequent Transfer Date, as the case may be. No later than
180 days after the Closing Date or such Subsequent Transfer Date, as the case
may be, the Indenture Trustee shall review the Receivable File for each
Receivable that is identified in such list as not including a Lien Certificate
in the related Receivable File to confirm that such Receivable File contains a
Lien Certificate showing the Issuer as secured party and shall notify the
Indenture Trustee, the Insurer, the Owner Trustee and the Seller of the results
of such review, including the failure of any such Receivable File to contain
such a Lien Certificate.

         6. Obligations of the Custodian.

                  (a) The Custodian shall maintain the items constituting the
Receivable Files at its principal office or, subject to the prior written
consent of the Insurer (so long as no Insurer Default shall have occurred and be
continuing), at such other office as shall from time to time be identified to
the Indenture Trustee and the Insurer, and the Custodian will hold the items
constituting the Receivable Files in such office on behalf of the Indenture
Trustee and the Insurer clearly segregated from any other instruments and files
on its records, including other instruments and files held by the Custodian with

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respect to other trusts established by the Seller, and in compliance with
Section 3(c) hereof. The Custodian shall segregate and maintain continuous
custody of all items constituting the Receivable Files in secure, fire rated
facilities in accordance with customary standards of a commercial bank acting in
the capacity of custodian with respect to similar receivables. The Custodian
shall hold the Receivable Files on behalf of (i) the Indenture Trustee for the
benefit of the Noteholders and the Insurer, or, (ii) after all unpaid principal
and interest on the Notes and all amounts owing to the Insurer have been paid in
full and the Insurance and Indemnity Agreement has expired by its terms, the
Issuer, and maintain such accurate and complete accounts, records and computer
systems pertaining to each Receivable File as will enable the Issuer to comply
with the terms and conditions of the Sale and Servicing Agreement. Each
Receivable shall be stamped on both the first page and the signature page (if
different) in accordance with the instructions from time to time provided by the
Insurer, and the form and content of the stamp shall be acceptable to the
Insurer. Each Receivable shall be identified on the books and records of the
Custodian in a manner that (i) is consistent with the practices of a commercial
bank acting in the capacity of custodian with respect to similar receivables,
(ii) indicates that the Receivable is held by the Custodian on behalf of the
Indenture Trustee for the benefit of the Noteholders and the Insurer, or, after
all unpaid principal and interest on the Notes and all amounts owing to the
Insurer have been paid in full and the Insurance and Indemnity Agreement has
expired by its terms, the Issuer, and (iii) is otherwise necessary, as
reasonably determined by the Custodian, to comply with the terms of this
Custodial Agreement. The Custodian shall conduct, or cause to be conducted,
periodic physical inspections of the Receivable Files held by it under this
Custodial Agreement, and of the related accounts, records and computer systems,
in such a manner as shall enable the Issuer Secured Parties, the Owner Trustee
on behalf of the Issuer, the Indenture Trustee and the Custodian to verify the
accuracy of the Custodian's inventory and recordkeeping. Such inspections shall
be conducted at such times, in such manner and by such persons including,
without limitation, independent accountants, as (i) the Indenture Trustee for
the benefit of the Noteholders and the Insurer, or, (ii) after all unpaid
principal and interest on the Notes and all amounts owing to the Insurer have
been paid in full and the Insurance and Indemnity Agreement has expired by its
terms, the Owner Trustee or the Indenture Trustee may request, and the cost of
such inspections shall be borne directly by the Custodian and not by the Issuer.
The Custodian shall promptly report to the Issuer Secured Parties, the Owner
Trustee and the Indenture Trustee any failure on its part to hold the Receivable
Files and maintain its accounts, records and computer systems as herein provided
and promptly take appropriate action to remedy any such failure. Notwithstanding
the above, the Custodian shall make microfiche or other electronic copies of the
Receivable Files and may maintain such copies of the Receivable Files in lieu of
maintaining physical possession of the Receivable Files; provided, however, that
such copies shall duplicate the entire contents of each Receivable File and,
provided further, that the Custodian shall at all times maintain the executed
cancelled check for the related contract and the original certificate of title
or, if not yet received, evidence that an application therefor has been
submitted with the appropriate authority, a guaranty of title from a dealer or
such other document (electronic or otherwise, as used in the applicable
jurisdiction) that the Servicer shall have on file in accordance with the
Servicer's customary procedures, evidencing the security interest of the
originator and the originals of all assumption, consolidation, extension,
modification or waiver agreements, if any, relating to such Receivable. Such
original sales contracts and promissory notes and Lien Certificate and
application therefor shall be stored in a fireproof vault.

                  (b) With respect to the documents constituting each
Custodian's Receivable File that are delivered to the Custodian, the Custodian
shall (i) act exclusively as the custodian for, and the bailee of, the Indenture
Trustee on behalf of the Noteholders and the Insurer and the Owner Trustee on
behalf of the Certificateholders, (ii) hold all documents constituting such
Custodian's Receivable File received by it for the exclusive use and benefit of
the Indenture Trustee, and (iii) make disposition thereof only in accordance
with the terms of this Agreement or with written instructions furnished by the
Controlling Party.

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                  (c) In the event that (i) the Indenture Trustee or the
Custodian shall be served by a third party with any type of levy, attachment,
writ or court order with respect to any Custodian's Receivable File or a
document included within a Custodian's Receivable File or (ii) a third party
shall institute any court proceeding by which any Custodian's Receivable File or
a document included within a Custodian's Receivable File shall be required to be
delivered otherwise than in accordance with the provisions of this Agreement,
the party or parties receiving such service shall promptly deliver or cause to
be delivered to the other parties to this Agreement copies of all court papers,
orders, documents and other materials concerning such proceedings. The Custodian
shall continue to hold and maintain all the Receivable Files that are the
subject of such proceedings pending a final order of a court of competent
jurisdiction permitting or directing disposition thereof. Upon final
determination of such court, the Custodian shall dispose of such Custodian's
Receivable File or a document included within such Custodian's Receivable File
as directed by such determination or, if no such determination is made, in
accordance with the provisions of this Agreement. Expenses of the Custodian
incurred as a result of such proceedings shall be borne by the Issuer.

                  (d) The Custodian shall, in general, attend to all
non-discretionary details in connection with maintaining custody of the
Receivables Files on behalf of (i) the Indenture Trustee for the benefit of the
Noteholders and the Insurer or (ii) after all unpaid principal and interest on
the Notes and all amounts owing to the Insurer have been paid in full and the
Insurance and Indemnity Agreement has expired by its terms, the Issuer. In
addition, the Custodian shall assist the Indenture Trustee and the Owner
Trustee, on behalf of the Issuer, generally in the preparation of any routine
reports to Noteholders, Certificateholders or to regulatory bodies, to the
extent necessitated by the Custodian's custody of the Receivable Files.

         7. Release of Receivable File. If the Custodian is not the Servicer,
from time to time and as appropriate for the foreclosure or servicing of any of
the Receivables, the Custodian is hereby authorized, upon receipt of a written
request of the Servicer acknowledged by the Indenture Trustee in substantially
the form annexed as Exhibit 2 (a "Request for Release and Receipt of
Documents"), to release to the Servicer by the close of business on the second
Business Day following such request, the related Custodian's Receivable File or
the documents from a Custodian's Receivable File set forth in such request and
receipt. All documents so released to the Servicer shall be held by the Servicer
in trust for the benefit of the Indenture Trustee in accordance with the Sale
and Servicing Agreement. The Servicer shall return to the Custodian each and
every document previously requested from the Custodian's Receivable File when
the Servicer's need therefore in connection with such foreclosure or servicing
no longer exists, unless the Receivable shall be liquidated, in which case, upon
receipt of a certification to this effect from the Servicer to the Custodian
acknowledged by the Indenture Trustee in substantially the form annexed as
Exhibit 2, the Servicer's prior receipt shall be returned by the Custodian to
the Servicer. The Indenture Trustee agrees to acknowledge, within one Business
Day of receipt, any Request for Release and Receipt of Documents properly
completed and submitted by the Servicer, and not unreasonably to withhold any
such acknowledgment.

         8. Release Upon Redelivery or Payment. If the Custodian is not the
Servicer upon the redelivery of any Receivable pursuant to the Sale and
Servicing Agreement or the payment in full of any Receivable, which shall be
evidenced by the delivery to the Custodian of a Request for Release and Receipt
of Documents in the form of Exhibit 2 executed by the Servicer and acknowledged
by the Indenture Trustee, the Custodian shall promptly release the Custodian's
Receivable File to the Servicer.

         9. Examination of Receivable Files. Upon reasonable prior written
notice to the Custodian (but no less than one Business Day), the Indenture
Trustee and the Insurer and their respective authorized representatives, will be
permitted during the Custodian's normal business hours to examine the Receivable
Files, documents, records and other papers in the possession, or under the
control, of the Custodian relating to any or all of the Receivables.

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         10. Transfer of Receivable Files Upon Termination. If the Custodian is
furnished with written notice and satisfactory evidence from the Indenture
Trustee that (i) all unpaid principal and interest on the Notes and all amounts
owing to the Insurer have been paid in full and the Insurance and Indemnity
Agreement has expired by its terms and (ii) from the Owner Trustee that the
trust has been terminated, the Custodian shall, upon written request of the
Indenture Trustee release to such Persons as the Owner Trustee shall designate
such Receivable Files relating to such Receivables and the Custodian shall
endorse the Receivable contracts only as, and if, the Owner Trustee shall
request in writing.

         11. Insurance of the Custodian. The Custodian shall, at its own
expense, maintain at all times during the term of this Agreement and keep in
full force and effect (a) fidelity insurance, (b) theft of documents insurance,
and (c) forgery insurance. All such insurance shall be in amounts, with standard
coverage and subject to deductibles, as are customary for similar insurance
typically maintained by banks that act as custodian in similar transactions.

         12. Periodic Statements. The Custodian by electronic transfer shall
provide monthly to the Indenture Trustee a list of all the Receivables for which
the Custodian holds a Custodian's Receivable File pursuant to this Agreement.
Such list shall include the loan number and name of the related Obligor and may
be in the form of a copy of the Schedule of Receivables with manual deletions to
specifically denote any Receivables redelivered since the date of this
Agreement.

         13. Copies of Documents. If the Custodian is not the Servicer, within
ten days after the written request and at the expense of the Servicer, the
Custodian shall provide the Indenture Trustee with copies of the documents in
the Receivable Files.

         14. Resignation by and Removal of the Custodian; Successor Custodian;
Amendment

                  (a) Prior to an Insurer Default, this Custodial Agreement may
be amended at any time by the mutual agreement of the Insurer, the Indenture
Trustee and the Custodian and may be terminated by either the Insurer or the
Custodian by giving written notice to the other parties, such termination to
take effect no sooner than thirty (30) days after the date of such notice;
provided, however, that the Insurer may terminate this Custodial Agreement at
any time in its sole discretion and any termination by the Insurer shall take
effect immediately. If an Insurer Default shall have occurred and be continuing,
this Custodial Agreement may be amended at any time by mutual agreement of the
parties hereto and may be terminated by any party by giving written notice to
the other parties, such termination to take effect no sooner than thirty (30)
days after the date of such notice. Upon any termination or amendment of this
Custodial Agreement, the Indenture Trustee on behalf of (i) the Indenture
Trustee for the benefit of the Noteholders and the Insurer, or, (ii) after all
unpaid principal and interest on the Notes and all amounts owing to the Insurer
have been paid in full and the Insurance and Indemnity Agreement has expired by
its terms, the Issuer, in the case of amendments, and the party seeking
termination, in the case of terminations, shall give written notice to Standard
& Poor's and Moody's (the "Rating Agencies"). Immediately after receipt of
notice of termination of this Custodial Agreement, the Custodian shall deliver
the Receivable Files to (i) the Indenture Trustee for the benefit of the
Noteholders and the Insurer, or, (ii) after all unpaid principal and interest on
the Notes and all amounts owing to the Insurer have been paid in full and the
Insurance and Indemnity Agreement has expired by its terms, the Issuer, or the
Indenture Trustee's agent, at such place or places as the Indenture Trustee, or
the Insurer, in the case of a termination by the Insurer, may designate, and the
Indenture Trustee, or its agent, as the case may be, shall act as custodian for
such Receivables Files on behalf of (i) the Indenture Trustee for the benefit of
the Noteholders and the Insurer, or, (ii) after all unpaid principal and
interest on the Notes and all amounts owing to the Insurer have been paid in
full and the Insurance and Indemnity Agreement has expired by its terms, the
Issuer until such time as a successor custodian, approved by the Insurer, has
been appointed. If, within twenty-four (24) hours after the termination of this
Custodial Agreement, the Custodian has not

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delivered the Receivables Files in accordance with the preceding sentence, the
Insurer or, if an Insurer Default shall have occurred and be continuing, the
Indenture Trustee, may enter the premises of the Custodian and remove the
Receivables Files from such premises. In connection with the administration of
this Agreement, the parties may agree from time to time upon the interpretation
of the provisions of this Agreement as may in their joint opinion be consistent
with the general tenor and purposes of this Agreement, any such interpretation
to be signed by all parties and annexed hereto. If both the Servicer and the
Controlling Party fail to appoint a successor custodian pursuant to the terms
hereof, the Custodian may petition a court of competent jurisdiction to appoint
a successor custodian. One original counterpart of such instrument of
appointment shall be delivered to the Servicer, Insurer and Indenture Trustee
and the successor custodian.

         If the Controlling Party fails to appoint a successor within 30 days,
the Servicer shall appoint a successor custodian. If both the Servicer and the
Controlling Party fail to appoint a successor custodian pursuant to the terms
hereof, the Custodian may petition a court of competent jurisdiction to appoint
a successor custodian. One original counterpart of such instrument of
appointment shall be delivered to the Servicer, Insurer and Indenture Trustee
and the successor custodian.

                  (b) No resignation or removal of the Custodian (except removal
by the Insurer) and no appointment of a successor custodian under this Section
15 shall become effective until the acceptance of a successor custodian
hereunder.

                  (c) In the event of any such resignation or removal, the
Custodian shall promptly transfer to the successor custodian, as directed in
writing by the Controlling Party, all of the Receivable Files being administered
pursuant to this Agreement.

         15. Indemnity. The Custodian agrees to indemnify the Issuer, the Owner
Trustee, the Indenture Trustee and the Insurer for any and all liabilities,
obligations, losses, damage, payments, costs or expenses of any kind whatsoever
(including the fees and expenses of counsel) that may be imposed on, incurred or
asserted against the Issuer, the Owner Trustee, the Indenture Trustee or the
Insurer as the result of any act or omission in any way relating to the
maintenance and custody by the Custodian of the Receivable Files; provided,
however, that the Custodian shall not be liable for any portion of any such
liabilities, obligations, losses, damages, payments or costs or expenses due to
the willful misfeasance, bad faith or gross negligence of the Indenture Trustee,
the Issuer or the Owner Trustee on behalf of the Issuer.

         16. Advise of Counsel. The Custodian may consult with counsel selected
by it with reasonable care and with regard to legal questions arising out of or
in connection with this Agreement, and the advice or opinion of such counsel
shall be full and complete authorization and protection in respect of any action
taken, omitted or suffered by the Custodian in reasonable reliance, in good
faith, and in accordance therewith.

         17. Term of Agreement. This Custodial Agreement shall become effective
as of the date hereof and shall continue in full force and effect until
terminated as provided herein.

         18. Authorized Representatives. The names of the officers of the
Custodian, Indenture Trustee, Owner Trustee and the Insurer who are authorized
to give and receive notices, requests and instructions and to deliver
certificates and documents in connection with this Agreement on behalf of such
parties ("Authorized Representative") are set forth on Exhibit 3, along with the
specimen signature of each such officer. From time to time, the Owner Trustee,
Indenture Trustee, Insurer and Servicer may, by delivering to the Custodian a
revised exhibit, change the information previously given, but the Custodian
shall be entitled to rely conclusively on the last exhibit until receipt of a
superseding exhibit.

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         19. Notices. All demands, notices and communications relating to this
Agreement shall be in writing and shall be deemed to have been duly given if
mailed, by registered or certified mail, return receipt requested, or by
overnight courier, or, if by other means, when received by the other party or
parties at the address shown below, or such other address as may hereafter be
furnished to the other party or parties by like notice. Any such demand, notice
or communication hereunder shall be deemed to have been received on the date
delivered to or received at the premises of the addressee (as evidenced, in the
case of registered or certified mail, by the date noted on the return receipt).

            If to the Seller, Servicer or Custodian:

            PeopleFirst Finance, LLC
            401 West A Street, Suite 1000
            San Diego, California  92101
            Attention:  W. Randolph Ellspermann
            Phone Number: (619) 544-0815
            Fax Number: (619) 557-3086

            If to the Insurer:

            Financial Security Assurance Inc.
            350 Park Avenue
            New York, NY  10022
            Attention: Transaction Oversight Department
                     Re: PeopleFirst
            Phone Number: (212) 826-0100
            Fax Number: (212) 339-3518; (212) 339-3529

            If to the Indenture Trustee:

            Wells Fargo National Bank, National Association
            Sixth Street & Marquette Avenue
            Minneapolis, Minnesota 55479, MAC N9311-161
            Attention: Corporate Trust Services - Asset Backed Administration
            Phone Number: (612) 667-8058
            Fax Number: (612) 667-3464

            If to the Owner Trustee:

            Wilmington Trust Company
            1100 North Market Street
            Wilmington, DE  19890
            Attention: Corporation Trust Administration
            Phone Number: (302) 472-4700
            Fax Number: (302) 651-1576

         20. Governing Law. This Agreement shall be governed by, and construed
in accordance with, the laws of the State of New York without regard to conflict
of laws applied in the State of New York.

                                       9
<PAGE>   10

         21. Assignment. No party to this Agreement may assign its rights or
delegate its obligations under this Agreement without the express written
consent of the other parties, except as otherwise set forth in this Agreement.

         22. Counterparts. For the purpose of facilitating the execution of this
Agreement and for other purposes, this Agreement may be executed simultaneously
in any number of counterparts, each of which shall be deemed to be an original
and together shall constitute and be one and the same instrument.

         23. Headings. The Section headings are not part of this Agreement and
shall not be used in its interpretation.

         24. Use of Words. The definitions set forth in this Agreement include
both the singular and plural.

         25. Limitation of Liability.

         It is expressly understood and agreed by the parties hereto that (a)
this Custodial Agreement is executed and delivered by Wilmington Trust Company,
not individually or personally but solely as Owner Trustee of the
PeopleFirst.com Vehicle Receivables Owner Trust 2000-2, in the exercises of the
powers and authority conferred and vested in it, (b) each of the
representations, undertakings and agreements herein made on the part of the
Issuer is made and intended not as personal representations, undertakings and
agreements by Wilmington Trust Company, but is made and intended for the purpose
of binding only the Issuer, (c) nothing herein contained shall be construed as
creating any liability on Wilmington Trust Company individually or personally,
to perform any covenant either expressed or implied contained herein, all such
liability, if any, being expressly waived by the parties hereto and by any
Person claiming by, through or under the parties hereto and (d) under no
circumstances shall Wilmington Trust Company be personally liable for the
payment of any indebtedness or expenses of the Issuer or be liable for the
breach or failure of any obligation, representation, warranty or covenant made
or undertaken by the Issuer under this Custodial Agreement or any other related
documents.

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

         27. Custodian Fee. For its services under this Agreement, the Custodian
shall be entitled to reasonable compensation to be paid by the Servicer.

                            [Signature Page Follows]

                                       10
<PAGE>   11

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the day and year first above written.

                       PEOPLEFIRST FINANCE, LLC,
                           as Custodian

                       By:  /s/ Justin Tisler
                          ----------------------------------------
                           Name:  Justin Tisler
                           Title: Treasurer

                       WELLS FARGO BANK MINNESOTA,
                       NATIONAL ASSOCIATION, as Indenture Trustee

                       By:  /s/ S. Dignan
                          ----------------------------------------
                           Name:  Sue Dignan
                           Title: Corporate Trust Officer

                       FINANCIAL SECURITY ASSURANCE INC.,
                       as Insurer

                       By:  /s/ Robin Ginsberg
                          ----------------------------------------
                           Name:  Robin Ginsberg
                           Title: Director

                       PEOPLEFIRST.COM VEHICLE
                       RECEIVABLES OWNER TRUST 2000-2,
                       by WILMINGTON TRUST COMPANY, not
                       in its individual capacity, but
                       solely as Owner Trustee

                       By:  /s/ James Lawler
                          ----------------------------------------
                           Name:  James Lawler
                           Title: Vice-President

                       PF FUNDING II, LLC,
                           as Transferor

                       By:  /s/ Justin Tisler
                          ----------------------------------------
                           Name:  Justin Tisler
                           Title: Vice-President

<PAGE>   12

                                                                       EXHIBIT 1

                                  CERTIFICATION

[Indenture Trustee]

         Re:      Custodial Agreement (the "Custodial Agreement") dated as of
                  December 1, 2000, among PF Funding II, LLC, as Transferor,
                  PeopleFirst.com Vehicle Receivables Owner Trust 2000-2 and
                  Wells Fargo Bank Minnesota, National Association ("Indenture
                  Trustee") and PeopleFirst Finance, LLC, as ("Custodian")

Ladies and Gentlemen:

         In accordance with the provisions of Section 3 of the above-referenced
Custodial Agreement, the undersigned, as the Custodian, hereby certifies that as
to each Receivable listed on the Schedule of Receivables (other than any
Receivable paid in full or any Receivable listed on the exception report
attached hereto) it has reviewed the Receivable File and has determined that (i)
all documents required to be delivered to it pursuant to Section 3 of the
Custodial Agreement are in its possession; (ii) such documents have been
reviewed by it and have not been mutilated, damaged, torn or otherwise
physically altered and relate to such Receivable identified on the Schedule of
Receivables; (iii) based on its examination and only as to the foregoing
documents, the information set forth in items (i) (ii) (v) and (vi) of the
definition of Schedule of Receivables respecting such Receivable accurately
reflects the information on the Schedule of Receivables; and (iv) based on its
examination, the Contract is an executed original counterpart.

         Capitalized words used herein shall have the respective meanings
assigned to them in the above-captioned Custodial Agreement.

                                       PeopleFirst Finance, LLC, as Custodian

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

<PAGE>   13

                                EXCEPTION REPORT

<PAGE>   14

                                                                       EXHIBIT 2
                  REQUEST FOR RELEASE AND RECEIPT OF DOCUMENTS

[Custodian]

                  Re:      Custodial Agreement (the "Custodial Agreement") dated
                           as of December 1, 2000, among PF Funding II, LLC, as
                           Transferor, PeopleFirst.com Vehicle Receivables Owner
                           Trust 2000-2 and Wells Fargo Bank Minnesota, National
                           Association (the "Indenture Trustee") and PeopleFirst
                           Finance, LLC (the "Custodian")

         In connection with the administration of the Receivables held by you as
the Custodian, we request the release of the (Custodian's Receivable
File/specify documents) for the Receivable described below, for the reason
indicated.

Obligor's Name, Address & Zip Code:

Receivable Number:

Reason for Requesting Documents (check one)

[ ]      1.       Receivable Paid in Full

[ ]      2.       Receivable Redelivered Pursuant to Section 8 of the Custodial
                  Agreement

[ ]      3.       Receivable Liquidated by ______________

[ ]      4.       Receivable in Foreclosure

[ ]      5.       Other (explain)

         If item 1, 2 or 3 above is checked, and if all or part of the
Custodian's Receivable File was previously released to us, please release to us
our previous receipt on file with you, as well as any additional documents in
your possession relating to the above specified Receivable.

<PAGE>   15

         If Item 4 or 6 above is checked, upon our return of all of the above
document to you as the Custodian, please acknowledge your receipt by signing in
the space indicated below, and returning this form.

                                       [________________], as Servicer

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

ACKNOWLEDGED:

WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION
  as Indenture Trustee

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

DOCUMENTS RETURNED TO THE CUSTODIAN

PEOPLEFIRST FINANCE, LLC, as Custodian

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

<PAGE>   16

                                                                       EXHIBIT 3

                           AUTHORIZED REPRESENTATIVES

         a)       of PeopleFirst Finance, LLC

Name                                                      Specimen Signature

1.

2.

3.

4.

5.

         b)       of Wilmington Trust Company

Name                                                      Specimen Signature

1.

2.

3.

4.

         c)       of Wells Fargo Bank Minnesota, National Association

Name                                                      Specimen Signature

1.

2.

3.

4.

<PAGE>   17

         d)       of Financial Security Assurance Inc.

Name                                                      Specimen Signature

1.

2.

3.

4.

<PAGE>   18

                                                                       EXHIBIT 4

                                                                       EXHIBIT 5

                             SCHEDULE OF RECEIVABLES

<PAGE>   19

                                                                       EXHIBIT 6

                                 ACKNOWLEDGMENT

         Wells Fargo Bank Minnesota, National Association, acting as Indenture
Trustee pursuant to that certain Custodial Agreement, dated as of December 1,
2000, among PF Funding II, LLC, as Transferor, PeopleFirst.com Vehicle
Receivables Owner Trust 2000-2, as Issuer, Wells Fargo Bank Minnesota, National
Association and Financial Security Assurance Inc., as Insurer, hereby
acknowledges that it has conducted a limited review of at least [#00] of the
Receivable Files transferred to the Issuer pursuant to the Sale and Servicing
Agreement, dated as of December 1, 2000 (the "Sale and Servicing Agreement"),
among PeopleFirst.com Vehicle Receivables Owner Trust 2000-2, as Issuer, PF
Funding II, LLC, as Transferor, PeopleFirst Finance, LLC as Seller and Servicer,
ML Asset Backed Corporation, as Depositor, and Wells Fargo Bank Minnesota,
National Association, as Indenture Trustee and Backup Servicer, and hereby
confirms that each Receivable File so reviewed, with the exceptions noted on
Exhibit A hereto, included (a) the executed cancelled check for the related
Contract, (b) a copy of the Note and Security Agreement for such Contract, (c)
the original certificate of title or, if not yet received, evidence that an
application therefor has been submitted with the appropriate authority, a
guaranty of title from a dealer or such other document (electronic or otherwise,
as used in the applicable jurisdiction) that the Servicer shall have on file in
accordance with the Servicer's customary procedures, evidencing the security
interest of the originator, (d) the originals of all assumption, consolidation,
extension, modification or waiver agreements, if any, relating to such
Receivable, (e) any other documents that the Servicer shall keep on file, in
accordance with its customary procedures, or reasonably required by the Issuer,
from time to time to be kept on file, relating to a Receivable, the related
Obligor or the related Financed Vehicle, and (f) any additional original loan
documents evidencing any assumption, consolidation, extension, modification or
waiver of a Receivable approved by the Servicer. Wells Fargo Bank Minnesota,
National Association has not otherwise reviewed the Receivables or the related
Receivable Files for compliance with the terms of the Sale and Servicing
Agreement.

         IN WITNESS WHEREOF, Wells Fargo Bank Minnesota, has caused this
acknowledgement to be executed by its duly authorized officer as of this [__]th
day of [_________], 2000.

                                     WELLS FARGO BANK MINNESOTA,
                                     NATIONAL ASSOCIATION
                                     as Indenture Trustee

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

<PAGE>   20

                                                                       EXHIBIT A

                                   EXCEPTIONS<PAGE>   1
                                                                    EXHIBIT 4.5

                                                 FINANCIAL GUARANTY
                                                 INSURANCE POLICY

<TABLE>
<S>                                                                             <C>
OBLIGOR: PeopleFirst.com Vehicle Receivables Owner Trust 2000-2                 Policy No.: 51028-N
OBLIGATIONS: $525,000,000 Asset Backed Notes, Classes A-1, A-2, A-3 and         Date of Issuance:
       A-4, as described in Endorsement No. 1 hereto                              December 15, 2000
</TABLE>

         FINANCIAL SECURITY ASSURANCE INC. ("Financial Security"), for
consideration received, hereby UNCONDITIONALLY AND IRREVOCABLY GUARANTEES to
each Holder, subject only to the terms of this Policy (which includes each
endorsement hereto), the full and complete payment by the Obligor of Scheduled
Payments of principal of, and interest on, the Obligations.

         For the further protection of each Holder, Financial Security
irrevocably and unconditionally guarantees:

         (a) payment of the amount of any distribution of principal of, or
     interest on, the Obligations made during the Term Of This Policy to such
     Holder that is subsequently avoided in whole or in part as a preference
     payment under applicable law (such payment to be made by Financial Security
     in accordance with Endorsement No. 1 hereto).

         (b) payment of any amount required to be paid under this Policy by
     Financial Security following Financial Security's receipt of notice as
     described in Endorsement No. 1 hereto.

         Financial Security shall be subrogated to the rights of each Holder to
receive payments under the Obligations to the extent of any payment by Financial
Security hereunder.

         Except to the extent expressly modified by an endorsement hereto, the
following terms shall have the meanings specified for all purposes of this
Policy. "Holder" means the registered owner of any Obligation as indicated on
the registration books maintained by or on behalf of the Obligor for such
purpose or, if the Obligation is in bearer form, the holder of the Obligation.
"Scheduled Payments" means payments which are scheduled to be made during the
Term Of This Policy in accordance with the original terms of the Obligations
when issued and without regard to any amendment or modification of such
Obligations thereafter; payments which become due on an accelerated basis as a
result of (a) a default by the Obligor, (b) an election by the Obligor to pay
principal on an accelerated basis or (c) any other cause, shall not constitute
"Scheduled Payments" unless Financial Security shall elect, in its sole
discretion, to pay such principal due upon such acceleration together with any
accrued interest to the date of acceleration. "Term Of This Policy" shall have
the meaning set forth in Endorsement No. 1 hereto.

         This Policy sets forth in full the undertaking of Financial Security,
and shall not be modified, altered or affected by any other agreement or
instrument, including any modification or amendment thereto, or by the merger,
consolidation or dissolution of the Obligor. Except to the extent expressly
modified by an endorsement hereto, the premiums paid in respect of this Policy
are nonrefundable for any reason whatsoever, including payment, or provision
being made for payment, of the Obligations prior to maturity. This Policy may
not be canceled or revoked during the Term Of This Policy. THIS POLICY IS NOT
COVERED BY THE PROPERTY/CASUALTY INSURANCE SECURITY FUND SPECIFIED IN ARTICLE 76
OF THE NEW YORK INSURANCE LAW.

         In witness whereof, FINANCIAL SECURITY ASSURANCE INC. has caused this
Policy to be executed on its behalf by its Authorized Officer.

                                           FINANCIAL SECURITY ASSURANCE INC.

                                           By  /s/ Roger K. Taylor
                                             -------------------------------
                                                   Authorized Officer

A subsidiary of Financial Security Assurance Holdings Ltd.
350 Park Avenue, New York, N.Y. 10022-6022                        (212) 826-0100
Form 100NY (5/89)
<PAGE>   2

            ENDORSEMENT NO. 1 TO FINANCIAL GUARANTY INSURANCE POLICY

FINANCIAL SECURITY                                     350 Park Avenue
ASSURANCE INC.                                         New York, New York  10022

OBLIGOR:  PeopleFirst.com Vehicle Receivables Owner Trust 2000-2

OBLIGATIONS:    $73,899,000 Class A-1 6.54% Asset Backed Notes
               $200,000,000 Class A-2 6.37% Asset Backed Notes
               $107,000,000 Class A-3 6.34% Asset Backed Notes
               $144,101,000 Class A-4 6.43% Asset Backed Notes

Policy No.:  51028-N
Date of Issuance:  December 15, 2000

     1. Definitions. For all purposes of this Policy, the terms specified below
shall have the meanings or constructions provided below. Capitalized terms used
herein and not otherwise defined herein shall have the meanings provided in the
Indenture unless the context shall otherwise require.

     "Business Day" means any day other than (i) a Saturday or Sunday or (ii) a
day on which banking institutions in the City of San Diego, California, New
York, New York, Minneapolis, Minnesota or Wilmington, Delaware or any other
location of the Servicer, any successor Servicer, successor Owner Trustee or
successor Indenture Trustee are authorized or obligated by law, executive order
or government decree to be closed.

     "Class A Notes" shall mean the $73,899,000 Class A-1 6.54% Asset Backed
Notes, the $200,000,000 Class A-2 6.37% Asset Backed Notes, the $107,000,000
Class A-3 6.34% Asset Backed Notes and the $141,101,000 Class A-4 6.43% Asset
Backed Notes.

     "Class A Noteholder" shall mean the Holder of a Class A-1 Note, Class A-2
Note, Class A-3 Note or Class A-4 Note; provided, however Class A Noteholder
shall not include the Obligor or any affiliates or successors thereof in the
event the Obligor, or any such affiliate or successor, is a registered or
beneficial owner of the Obligation.

     "Financial Security" means Financial Security Assurance Inc., a New York
stock insurance company.

     "Holder" shall have the meaning set forth in the Indenture.

     "Indenture" means the Indenture, dated as of December 1, 2000, between
PeopleFirst.com Vehicle Receivables Owner Trust 2000-2, a Delaware business
trust,

<PAGE>   3
Policy No. 51028-N                           Date of Issuance: December 15, 2000

and Wells Fargo Bank Minnesota, National Association as Indenture Trustee, as
amended from time to time in accordance with its terms.

     "Indenture Trustee" means Wells Fargo Bank Minnesota, National
Association, a national banking association, in its capacity as Indenture
Trustee under the Indenture and any successor in such capacity.

     "Noteholders' Interest Carryover Shortfall" shall have the meaning set
forth in the Sale and Servicing Agreement.

     "Noteholders' Interest Distributable Amount" shall have the meaning set
forth in the Sale and Servicing Agreement.

     "Noteholders' Principal Distributable Amount" shall have the meaning set
forth in the Sale and Servicing Agreement.

     "Policy" means this Financial Guaranty Insurance Policy and includes each
endorsement thereto.

     "Receipt" and "Received" mean actual delivery to Financial Security and to
its Fiscal Agent (as defined below), if any, prior to 12:00 noon, New York City
time, on a Business Day; delivery either on a day that is not a Business Day, or
after 12:00 noon, New York City time, shall be deemed to be "Receipt" on the
next succeeding Business Day. If any notice or certificate given hereunder by
the Indenture Trustee is not in proper form or is not properly completed,
executed or delivered, it shall be deemed not to have been Received, and
Financial Security or its Fiscal Agent shall promptly so advise the Indenture
Trustee and the Indenture Trustee may submit an amended notice.

     "Sale and Servicing Agreement" means the Sale and Servicing Agreement,
dated as of December 1, 2000, among the Obligor, as Issuer, PF Funding II, LLC,
as transferor, ML Asset Backed Corporation, as Depositor, PeopleFirst Finance,
LLC, as Seller and Servicer, and Wells Fargo Bank Minnesota, National
Association as Indenture Trustee and Backup Servicer, as amended from time to
time in accordance with its terms.

     "Scheduled Payments" means, with respect to each Payment Date, the
distribution to be made to the Class A Noteholders in an aggregate amount equal
to the Noteholders' Interest Distributable Amount and the Noteholders' Principal
Distributable Amount due and payable on such Payment Date, in each case in
accordance with the original terms of the Class A Notes when issued and without
regard to any amendment or modification of the Class A Notes, the Indenture or
the Sale and Servicing Agreement, except amendments or modifications to which
Financial Security has given its prior written consent; provided, however, that
Scheduled Payments shall not include (x) any portion of the Noteholders'
Interest Distributable Amount due to Class A Noteholders because the appropriate
notice and certificate for payment in proper form was not timely Received by
Financial Security or (y) any portion of the Noteholders' Interest Distributable
Amount due to Class A Noteholders representing interest on any Noteholders'
Interest Carryover Shortfall, unless, in each case, Financial Security elects,

                                       2
<PAGE>   4
Policy No. 51028-N                           Date of Issuance: December 15, 2000

in its sole discretion, to pay such amount in whole or in part. Scheduled
Payments do not include payments that become due on an accelerated basis as a
result of (a) a default by the Obligor, (b) an election by the Obligor to pay
principal on an accelerated basis, (c) the occurrence of an Event of Default
under the Indenture or (d) any other cause, unless, in each case, Financial
Security elects, in its sole discretion, to pay in whole or in part such
principal due upon acceleration, together with any accrued interest to the date
of acceleration. Scheduled Payments shall not include any amounts due in respect
of the Class A Notes attributable to any increase in interest rate, penalty or
other sum payable by the Obligor by reason of any default or event of default in
respect of the Obligations, or by reason of any deterioration of the
creditworthiness of the Obligor nor shall Scheduled Payments include, nor shall
coverage be provided under the Policy in respect of, any taxes, withholding or
other charge imposed by any governmental authority due in connection with the
payment of any Scheduled Payment to a Class A Noteholder.

     "Term Of This Policy" means the period from and including the Date of
Issuance to and including the latest of the date on which (i) the outstanding
principal amount of Class A Notes has been reduced to zero and all distributions
of the Noteholders' Interest Distributable Amount have been paid on the Class A
Notes, (ii) any period during which any payment on the Class A Notes could have
been avoided in whole or in part as a preference payment under applicable
bankruptcy, insolvency, receivership or similar law has expired, and (iii) if
any proceedings requisite to avoidance as a preference payment have been
commenced prior to the occurrence of (i) and (ii), a final and nonappealable
order in resolution of each such proceeding has been entered.

     2. Notices and Conditions to Payment in Respect of Scheduled Payments.
Following Receipt by Financial Security of a notice and certificate from the
Indenture Trustee in the form attached as Exhibit A to this Endorsement,
Financial Security will pay any amount payable hereunder in respect of Scheduled
Payments on the Obligations out of the funds of Financial Security on the later
to occur of (a) 12:00 noon, New York City time, on the third Business Day
following such Receipt; and (b) 12:00 noon, New York City time, on the Business
Day preceding the applicable Payment Date to which such claim relates. Payments
due hereunder in respect of Scheduled Payments will be disbursed by wire
transfer of immediately available funds to the Policy Payments Account
established pursuant to the Sale and Servicing Agreement or, if no such Policy
Payments Account has been established, to the Indenture Trustee.

     Financial Security shall be entitled to pay any amount hereunder in
respect of Scheduled Payments on the Obligations, including any amount due on
the Obligations on an accelerated basis, whether or not any notice and
certificate shall have been Received by Financial Security as provided above;
provided, however, that by acceptance of this Policy the Indenture Trustee
agrees to provide to Financial Security, upon request by Financial Security to
the Indenture Trustee, a notice and certificate in respect of any such payments
made by Financial Security. Financial Security shall be entitled to pay
hereunder any amount due on the Obligations that becomes due on an accelerated
basis at any time or from time to time after such amount becomes due, in whole
or in part, prior to the scheduled date of payment thereof; Scheduled Payments
insured hereunder shall not include interest, in respect of principal paid
hereunder on an accelerated basis,

                                       3

<PAGE>   5
Policy No. 51028-N                           Date of Issuance: December 15, 2000

accruing from and after the date of such payment of principal. Financial
Security's obligations hereunder in respect of Scheduled Payments shall be
discharged to the extent funds are disbursed by Financial Security as provided
herein whether or not such funds are properly applied by the Indenture Trustee.

     3. Notices and Conditions to Payment in Respect of Scheduled Payments
Avoided as Preference Payments. If any Scheduled Payment is avoided as a
preference payment under applicable bankruptcy, insolvency, receivership or
similar law, Financial Security will pay such amount out of the funds of
Financial Security on the later of (a) the date when due to be paid pursuant to
the Order (as defined below) or (b) the first to occur of (i) the fourth
Business Day following Receipt by Financial Security from the Indenture Trustee
of (A) a certified copy of the order (the "Order") of the court or other
governmental body that exercised jurisdiction to the effect that the Class A
Noteholder is required to return the amount of any Scheduled Payment distributed
with respect to the Class A Notes during the Term Of This Policy because such
distributions were avoidable as preference payments under applicable bankruptcy
law, (B) a certificate of the Class A Noteholder that the Order has been entered
and is not subject to any stay and (C) an assignment duly executed and delivered
by the Class A Noteholder, in such form as is reasonably required by Financial
Security and provided to the Class A Noteholder by Financial Security,
irrevocably assigning to Financial Security all rights and claims of the Class A
Noteholder relating to or arising under the Class A Notes against the debtor
that made such preference payment or otherwise with respect to such preference
payment, or (ii) the date of Receipt by Financial Security from the Indenture
Trustee of the items referred to in clauses (A), (B) and (C) above if, at least
four Business Days prior to such date of Receipt, Financial Security shall have
Received written notice from the Indenture Trustee that such items were to be
delivered on such date and such date was specified in such notice. Such payment
shall be disbursed to the receiver, conservator, debtor-in-possession or trustee
in bankruptcy named in the Order and not to the Indenture Trustee or any Class A
Noteholder directly (unless a Class A Noteholder has previously paid such amount
to the receiver, conservator, debtor-in-possession or trustee in bankruptcy
named in the Order, in which case such payment shall be disbursed to the
Indenture Trustee for distribution to such Class A Noteholder upon proof of such
payment reasonably satisfactory to Financial Security). In connection with the
foregoing, Financial Security shall have the rights provided pursuant to Section
5A.2 of the Sale and Servicing Agreement.

     4. Governing  Law. This Policy shall be governed by and construed in
accordance with the laws of the State of New York, without giving effect to the
conflict of laws principles thereof.

     5. Fiscal Agent. At any time during the Term Of This Policy, Financial
Security may appoint a fiscal agent (the "Fiscal Agent") for purposes of this
Policy by written notice to the Indenture Trustee at the notice address
specified in the Sale and Servicing Agreement specifying the name and notice
address of the Fiscal Agent. From and after the date of receipt of such notice
by the Indenture Trustee, (i) copies of all notices and documents required to be
delivered to Financial Security pursuant to this Policy shall be simultaneously
delivered to the Fiscal Agent and to Financial Security and

                                       4

<PAGE>   6
Policy No. 51028-N                           Date of Issuance: December 15, 2000

shall not be deemed Received until Received by both and (ii) all payments
required to be made by Financial Security under this Policy may be made directly
by Financial Security or by the Fiscal Agent on behalf of Financial Security.
The Fiscal Agent is the agent of Financial Security only and the Fiscal Agent
shall in no event be liable to any Class A Noteholder for any acts of the Fiscal
Agent or any failure of Financial Security to deposit, or cause to be deposited,
sufficient funds to make payments due under this Policy.

     6. Waiver of Defenses. To the fullest extent permitted by applicable law,
Financial Security agrees not to assert, and hereby waives, for the benefit of
each Class A Noteholder, all rights (whether by counterclaim, setoff or
otherwise) and defenses (including, without limitation, the defense of fraud),
whether acquired by subrogation, assignment or otherwise, to the extent that
such rights and defenses may be available to Financial Security to avoid payment
of its obligations under this Policy in accordance with the express provisions
of this Policy.

     7. Notices.  All notices to be given hereunder shall be in writing (except
as otherwise specifically provided herein) and shall be mailed by registered
mail or personally delivered or telecopied to Financial Security as follows:

                   Financial Security Assurance Inc.
                   350 Park Avenue
                   New York, NY  10022
                   Attention:  Senior Vice President-Transaction Oversight
                   Re: PeopleFirst.com Vehicle Receivables Owner Trust 2000-2
                              Policy No.:  51028-N
                   Telecopy No.:  (212) 339-3518
                   Confirmation:  (212) 826-0100

Financial Security may specify a different address or addresses by writing
mailed or delivered to the Indenture Trustee.

     8. Priorities. In the event any term or provision of the face of this
Policy is inconsistent with the provisions of this Endorsement, the provisions
of this Endorsement shall take precedence and shall be binding.

     9. Exclusions From Insurance Guaranty Funds. This Policy is not covered by
the Property/Casualty Insurance Security Fund specified in Article 76 of the
New York Insurance Law. This Policy is not covered by the Florida Insurance
Guaranty Association created under Part II of Chapter 631 of the Florida
Insurance Code. In the event Financial Security were to become insolvent, any
claims arising under this Policy are excluded from coverage by the California
Insurance Guaranty Association, established pursuant to Article 14.2 of Chapter
1 of Part 2 of Division 1 of the California Insurance Code.

                                       5

<PAGE>   7
Policy No. 51028-N                           Date of Issuance: December 15, 2000

     10. Surrender of Policy. The Indenture Trustee shall surrender this
Policy to Financial Security for cancellation upon expiration of the Term Of
This Policy.

     IN WITNESS WHEREOF, FINANCIAL SECURITY ASSURANCE INC. has caused this
Endorsement No. 1 to be executed by its Authorized Officer.

                                   FINANCIAL SECURITY ASSURANCE INC.

                                   By: __________________________________
                                               Authorized Officer

                                       6
<PAGE>   8

Policy No. 51028-N                           Date of Issuance: December 15, 2000

                                                      EXHIBIT A TO ENDORSEMENT 1

                         NOTICE OF CLAIM AND CERTIFICATE
                         -------------------------------

                        (Letterhead of Indenture Trustee)

Financial Security Assurance Inc.
350 Park Avenue
New York, NY  10022

      Re: PeopleFirst.com Vehicle Receivables Owner Trust 2000-2
           $73,899,000 Class A-1 6.54% Asset Backed Notes
          $200,000,000 Class A-2 6.37% Asset Backed Notes
          $107,000,000 Class A-3 6.34% Asset Backed Notes
          $144,101,000 Class A-4 6.43% Asset Backed Notes
          -----------------------------------------------

          The undersigned, a duly authorized officer of Wells Fargo Bank
Minnesota, National Association (the "Indenture Trustee") hereby certifies to
Financial Security Assurance Inc. ("Financial Security"), with reference to
Financial Guaranty Insurance Policy No. 51028-N dated December 15, 2000 (the
"Policy") issued by Financial Security in respect of the $73,899,000 Class A-1
6.54% Asset Backed Notes (the "Class A-1 Notes"), the $200,000,000 Class A-2
6.37% Asset Backed Notes (the "Class A-2 Notes"), the $107,000,000 Class A-3
6.34% Asset Backed Notes (the "Class A-3 Notes"), and the $144,101,000 Class A-4
6.43% Asset Backed Notes (the "Class A-4 Notes" and together with the Class A-1
Notes, Class A-2 Notes and the Class A-3 Notes, the "Class A Notes") of the
above referenced Trust, that:

               (i)    The Indenture Trustee is the Indenture Trustee under the
          Indenture for the Class A Noteholders.

               (ii)   The sum of all amounts on deposit (or scheduled to be on
          deposit) in the Note Distribution Account and available for
          distribution to the Class A Noteholders pursuant to the Sale and
          Servicing Agreement will be $___________ (the "Shortfall") less than
          the Scheduled Payments with respect to the Payment Date
          occurring _______ __, ____.

               (iii)  The Indenture Trustee is making a claim under the Policy
          for the Shortfall to be applied to distributions of Scheduled
          Payments with respect to the Class A Notes.

               (iv)   The Indenture  Trustee agrees that, following receipt of
          funds from Financial Security, it shall (a) hold such amounts in
          trust and apply the same directly to the payment of Scheduled
          Payments on the Obligations when due; (b) not apply such funds for
          any other purpose; (c) not commingle such funds with other funds held
          by the Indenture Trustee and (d) maintain an accurate record of such
          payments with respect

                                      A-1

<PAGE>   9

Policy No. 51028-N                           Date of Issuance: December 15, 2000

          to each Class A Note and the corresponding claim on the Policy and
          proceeds thereof and, if the Class A Note is required to be
          surrendered or presented for such payment, shall stamp on each such
          Class A Note the legend "$[insert applicable amount] paid by
          Financial Security and the balance hereof has been canceled and
          reissued" and than shall deliver such Class A Note to Financial
          Security.

               (v)  The Indenture Trustee, on behalf of the Class A
          Noteholders, hereby assigns to Financial Security the rights of the
          Class A Noteholders with respect to the Class A Notes to the extent
          of any payments under the Policy, including, without limitation, any
          amounts due to the Class A Noteholders in respect of securities law
          violations arising from the offer and sale of the Class A Notes. The
          foregoing assignment is in addition to, and not in limitation of,
          rights of subrogation otherwise available to Financial Security in
          respect of such payments. The Indenture Trustee shall take such
          action and deliver such instruments as may be reasonably requested or
          required by Financial Security to effectuate the purpose or
          provisions of this clause (v).

               (vi) The Indenture Trustee, on its behalf and on behalf of the
          Class A Noteholders, hereby appoints Financial Security as agent and
          attorney-in-fact for the Indenture Trustee and each such Class A
          Noteholder in any legal proceeding with respect to the Class A Notes.
          The Indenture Trustee hereby agrees that Financial Security may at any
          time during the continuation of any proceeding by or against any
          debtor with respect to which a Preference Claim (as defined below) or
          other claim with respect to the Class A Notes is asserted under the
          United States Bankruptcy Code or any other applicable bankruptcy,
          insolvency, receivership, rehabilitation or similar law (an
          "Insolvency Proceeding") direct all matters relating to such
          Insolvency Proceeding, including without limitation, (A) all matters
          relating to any claim in connection with an Insolvency Proceeding
          seeking the avoidance as a preferential transfer of any payment made
          with respect to the Class A Notes (a "Preference Claim"), (B) the
          direction of any appeal of any order relating to any Preference Claim
          at the expense of Financial Security but subject to reimbursement as
          provided in the Insurance Agreement and (C) the posting of any surety,
          supersedeas or performance bond pending any such appeal. In addition,
          the Indenture Trustee hereby agrees that Financial Security shall be
          subrogated to, and the Indenture Trustee on its behalf and on behalf
          of each Class A Noteholder, hereby delegates and assigns, to the
          fullest extent permitted by law, the rights of the Indenture Trustee
          and each Class A Noteholder in the conduct of any Insolvency
          Proceeding, including, without limitation, all rights of any party to
          an adversary proceeding or action with respect to any court order
          issued in connection with any such Insolvency Proceeding.

                                      A-2

<PAGE>   10
Policy No. 51028-N                           Date of Issuance: December 15, 2000

               (vii) Payment should be made by wire transfer directed to
          [Specify Account].

          Unless the context otherwise requires, capitalized terms used in this
Notice of Claim and Certificate and not defined herein shall have the meanings
provided in the Policy.

          IN WITNESS WHEREOF, the Indenture Trustee has executed and delivered
this Notice of Claim and Certificate as of the ____ day of _______________,
_______.

                                       WELLS FARGO BANK MINNESOTA,
                                         NATIONAL ASSOCIATION
                                       not in its individual capacity but solely
                                       as Indenture Trustee

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

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

For Financial Security or Fiscal Agent Use Only

Wire transfer sent on                             by
                      ---------------------------

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

Confirmation Number
                     ----------------------------

                                      A-3

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