Document:

Amendment No. 1 and Joinder, Dtd. May 21, 2004

 Exhibit 10.3 
  
 Execution Version 
  
 AMENDMENT NO. 1 AND JOINDER 
  
         AMENDMENT NO. 1 AND JOINDER, dated as of May 21, 2004 (this “Amendment”), to the Second
Amended and Restated Master Loan and Security Agreement, dated as of January 30, 2004 (as amended, supplemented or otherwise modified prior to the date hereof, the “Existing Loan Agreement”; as amended hereby and as further amended,
restated, supplemented or otherwise modified and in effect from time to time, the “Loan Agreement”), by and among NC CAPITAL CORPORATION (“NC Capital”), NEW CENTURY MORTGAGE CORPORATION (“New
Century”, together with NC Capital, collectively, the “Existing Borrowers”; the Existing Borrowers together with the Additional Borrower referred to below, collectively, the “Borrowers”, each, a
“Borrower”), MORGAN STANLEY BANK (“MSB”) and MORGAN STANLEY MORTGAGE CAPITAL INC. (“MSMCI”) (MSMCI, in its capacity as a lender, together with MSB, collectively, the “Lenders”, and in its
capacity as agent for the Lenders, together with any successors and assigns, the “Agent”). Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Existing Loan Agreement. 
  
 RECITALS 
  
         The Existing Borrowers, the Lenders and the Agent are parties to the
Existing Loan Agreement, pursuant to which the Lenders have agreed to make and to permit to remain outstanding certain extensions of credit on the terms and subject to the conditions of the Existing Loan Agreement. 
  
         The Borrowers, the Lenders
and the Agent have agreed, subject to the terms and conditions hereof, that the Existing Loan Agreement shall be amended to make NC Residual II Corporation, a Delaware corporation (“NCRII” or the “Additional
Borrower”), a “Borrower” under the Loan Agreement and to effect certain other changes as set forth in this Amendment. 
  
         Accordingly, the parties hereto hereby agree, in consideration of the mutual premises and mutual
obligations set forth herein, that the Existing Loan Agreement is hereby amended as follows: 
  
         SECTION 1. Amendments. 
  
         (a) The definition of “Collateral Value” set forth in Section 1.01 of the Existing Loan
Agreement is hereby amended by deleting clause (a)(i) in its entirety and substituting in lieu thereof the following: 
  
         “(i) the aggregate unpaid principal balance of all Eligible Mortgage Loans pledged to
the Agent hereunder, excluding Alternate ‘A’ Mortgage Loans, shall not exceed (A) prior to June 30, 2004, $1,800,000,000 and (B) from and after June 30, 2004, $1,300,000,000;”. 
  
         (b) Section 1.01 of the
Existing Loan Agreement is hereby amended by deleting the definition of “Maximum Credit” in its entirety and substituting in lieu thereof the following definition: 

         “‘Maximum Credit’
shall mean (a) prior to June 30, 2004, $2,000,000,000 and (b) from and after June 30, 2004, $1,500,000,000, in each case as reduced in accordance with Section 2.01 hereof.” 
  
         (c) Section 2.07 of the Existing Loan Agreement is hereby deleted in its
entirety and the following new Section 2.07 is inserted in lieu thereof: 
  
         “Section 2.07 Mandatory Prepayments or Pledge. 
  
         (a) If at any time the aggregate outstanding principal amount of Loans exceeds the
Borrowing Base (a “Borrowing Base Deficiency”), as determined by the Agent and notified to the Borrowers on any Business Day, the Borrowers shall no later than one (1) Business Day after receipt of such notice, either prepay the
Loans in part or in whole or pledge additional Eligible Mortgage Loans (which Collateral shall be in all respects acceptable to the Agent in its sole discretion) to the Agent for the account of the Lenders, such that after giving effect to such
prepayment or pledge of additional Eligible Mortgage Loans a Borrowing Base Deficiency shall no longer exist. 
  
         (b) If at any time the aggregate outstanding principal amount of Loans exceeds the Maximum
Credit then in effect, the Borrowers shall at such time prepay the Loans such that, after giving effect to such prepayment, the aggregate outstanding principal amount of Loans shall not exceed the Maximum Credit then in effect.” 
  
         (d) Schedule 4 to the
Existing Loan Agreement is hereby deleted in its entirety and the Schedule 4 attached hereto is inserted in lieu thereof. 
  
         SECTION 2. Joinder Agreement. From and after the Amendment Effective Date (defined below),
NCRII shall be a “Borrower” under the Loan Agreement with all of the rights, powers and obligations of a Borrower thereunder and all references to the “Borrowers” in the Loan Agreement and the other Loan Documents shall be deemed
to include, in any event, NCRII. 
  
         SECTION 3. Conditions Precedent. This Amendment shall become effective on the first date (the “Amendment Effective Date”) that all of the following conditions
precedent shall have been satisfied: 
  
         3.1 Delivered Documents. On the Amendment Effective Date, the Agent shall have received the following documents, each of which shall be satisfactory to the Agent in form and substance:

  
         (a)
Amendment. This Amendment, executed and delivered by a duly authorized officer of each of the Borrowers, the Guarantor, the Lenders and the Agent; 
  
         (b) Amended and Restated Note. For the account of each Lender, in exchange for the Note most
recently delivered to such Lender under the Existing Loan Agreement, an Amended and Restated Promissory Note, substantially in the form of Exhibit A hereto; 
  

 2 

         (c) Amendment to Custodial Agreement. An amendment
to the Custodial Agreement providing for the joinder of NCRII as a “Borrower” party thereto, executed and delivered by a duly authorized officer of each of the Borrowers, the Custodian, the Disbursement Agent and the Agent; 
  
         (d) Servicer Letter. A
letter from New Century, in its capacity as Servicer, confirming that upon the occurrence of an Event of Default, the Agent may terminate any Servicing Agreement and in any event transfer servicing to the Agent’s designee, at no cost or expense
to the Agent and otherwise satisfying the requirements of Section 11.14(d). 
  
         (e) Secretary’s Certificates of Borrowers. A certificate of the Secretary or Assistant Secretary of each Borrower, substantially in the form of Exhibit
B hereto, dated as of the date hereof, and 
  
         (i) attaching certificates dated as of a recent date from the Secretary of State or other appropriate authority, evidencing the good standing of each Borrower in the jurisdiction of its
organization, 
  
         (ii) attaching a copy of the resolutions, in form and substance satisfactory to the Agent, of the Board of Directors of each Borrower authorizing (A) the execution, delivery and performance of
this Amendment, and (B) the borrowings contemplated under the Loan Agreement, 
  
         (iii) (A) with respect to each Existing Borrower, certifying that since the Effective Date of the Existing Loan Agreement there have been no changes to any of the
organizational documents of such Borrower delivered pursuant to Section 5.01 of the Loan Agreement and (B) with respect to the Additional Borrower, attaching certified copies of the charter and by-laws (or equivalent documents) of such Borrower, and

  
         (iv) certifying as to the incumbency and specimen signature of each officer executing this Amendment; 
  

        (f) Legal Opinions. Legal opinions of internal and outside counsel to the Borrowers,
substantially in the forms attached hereto as Exhibits C-1 and C-2, respectively; and 
  
         (g) Other Documents. Such other documents as the Agent or counsel to the Agent may reasonably
request. 
  
         3.2
Lien Searches and Actions to Perfect Liens. The Agent shall have received the results of a search conducted by a Person satisfactory to the Agent with respect to any liens which may have been filed against any of the Collateral, and the
results of such search shall be satisfactory to the Agent. The Borrowers shall have taken all such action as the Agent shall deem necessary or advisable (including, without limitation, the authorization and execution of Uniform Commercial Code
financing, continuation or amendment statements) to perfect, continue or otherwise ensure perfection of the security interests granted in favor of the Agent under the Loan Documents. 
  

 3 

         3.3 Consents, Licenses, Approvals, etc. Copies
certified by the Borrowers of all consents, licenses and approvals, if any, required in connection with the execution, delivery and performance by the Borrowers of, and the validity and enforceability of, the Loan Documents, which consents, licenses
and approvals shall be in full force and effect. 
  
         3.4 No Default. On the Amendment Effective Date, (i) each Borrower shall be in compliance with all of the terms and provisions set forth in the Existing Loan Agreement and the other
Loan Documents on its part to be observed or performed, (ii) the representations and warranties made and restated by the Borrowers pursuant to Section 4 of this Amendment shall be true and complete on and as of such date with the same force and
effect as if made on and as of such date and (iii) no Default shall have occurred and be continuing on such date. 
  
         SECTION 4. Representations and Warranties. Each of the Borrowers hereby represents and
warrants to the Agent and the Lenders, as of the date hereof and as of the Amendment Effective Date, that it is in compliance with all of the terms and provisions set forth in the Loan Documents on its part to be observed or performed, and that no
Default has occurred or is continuing, and hereby confirms and reaffirms the representations and warranties contained in Article VI of the Loan Agreement. 
  
         SECTION 5. Limited Effect. Except as expressly amended and modified by this Amendment, the
Existing Loan Agreement and each of the other Loan Documents shall continue to be, and shall remain, in full force and effect in accordance with its respective terms; provided, however, that upon the Amendment Effective Date each reference therein
and herein to the “Loan Documents” shall be deemed to include, in any event, this Amendment and each reference to the Loan Agreement in any of the Loan Documents shall be deemed to be a reference to the Loan Agreement as amended hereby.

  
         SECTION 6.
Guarantor’s Continuing Obligations. Although consent of the Guarantor is not required, as a convenience to the parties, the Guarantor hereby acknowledges the modifications effected by this Amendment, including, without limitation,
the increase of the Maximum Credit and the joinder of NCRII as a “Borrower” under the Loan Agreement, and the Guarantor hereby affirms and confirms its obligations under the New Century Guaranty in respect the Loan Agreement. 

 
         SECTION 7.
Counterparts. This Amendment may be executed by each of the parties hereto on any number of separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument. Delivery
of an executed counterpart of a signature page to this Amendment in Portable Document Format (PDF) or by facsimile transmission shall be effective as delivery of a manually executed original counterpart thereof. 
  
         SECTION 8.
GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
  
 [SIGNATURES FOLLOW] 
  
  

 4 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 and Joinder to be duly executed
and delivered as of the day and year first above written. 
  

			
	 BORROWERS
  
 NC CAPITAL CORPORATION
  

		
	By:	 	/s/    KEVIN CLOYD        
	 	 	

	 	 	 Name: Kevin Cloyd
 Title:
President

  

			
	 NEW CENTURY MORTGAGE CORPORATION
  

		
	By:	 	/s/    KEVIN CLOYD        
	 	 	

	 	 	 Name: Kevin Cloyd
 Title: Executive Vice
President

  

			
	 NC RESIDUAL II CORPORATION
  

		
	By:	 	/s/    KEVIN CLOYD        
	 	 	

	 	 	 Name: Kevin Cloyd
 Title: Executive Vice
President

  

			
	 MORGAN STANLEY MORTGAGE
CAPITAL INC., as Agent and as a Lender
  

		
	By:	 	/s/    ANDREW B. NEUBERGER        
	 	 	

	 	 	 Name: Andrew B. Neuberger
 Title: Vice
President

  

			
	 MORGAN STANLEY BANK, as a Lender
  

		
	By:	 	/s/    ANDREW B. NEUBERGER        
	 	 	

	 	 	 Name: Andrew B. Neuberger
 Title: Vice
President

 Acknowledged and agreed: 
  

			
	 NEW CENTURY FINANCIAL CORPORATION, as the Guarantor
  

		
	By:	 	/s/    KEVIN CLOYD        
	 	 	

	 	 	 Name: Kevin Cloyd
 Title: Executive Vice
President

  

			
		
	By:	 	/s/    PATRICK FLANAGAN        
	 	 	

	 	 	 Name: Patrick Flanagan
 Title: Executive Vice
President

 Schedule 4 
  

LENDER COMMITMENTS 
  

				
	 Prior to June 30, 2004:
	  	 	 
		
	 Lender
	  	 	Commitment
	 Morgan Stanley Bank
	  	$	400,000,000
	 Morgan Stanley Mortgage Capital Inc.
	  	$	1,600,000,000
	 Total
	  	$	2,000,000,000

  

				
	 From and After June 30, 2004:
	  	 	 
		
	 Lender
	  	 	Commitment
	 Morgan Stanley Bank
	  	$	400,000,000
	 Morgan Stanley Mortgage Capital Inc.
	  	$	1,100,000,000
	 Total
	  	$	1,500,000,000

  

 Exhibit A 
  

FORM OF AMENDED AND RESTATED PROMISSORY NOTE 
  

			
	[$400,000,000.00 / $1,600,000,000.00]	 	January 30, 2004

 amended and restated May     , 2004 
 New York, New York 
  
 FOR VALUE RECEIVED, NC CAPITAL CORPORATION, a California corporation (“NC Capital”), NEW CENTURY MORTGAGE CORPORATION, a California
corporation (“New Century”, together with NC Capital, the “Initial Borrowers”) and NC RESIDUAL II CORPORATION, a [            ] corporation
(“NCRII”, together with NC Capital and New Century, each a “Borrower” and, collectively, the “Borrowers”), hereby promises to pay, jointly and severally, to the order of [MORGAN STANLEY BANK /
MORGAN STANLEY MORTGAGE CAPITAL INC.] (the “Lender”), at the principal office of Morgan Stanley Mortgage Capital Inc., Agent for the Lenders under the Loan Agreement referred to below, at 1221 Avenue of the Americas, 27th Floor, New York, New York, 10020, in lawful money of the United States, and in immediately available funds, the principal sum
of [FOUR HUNDRED MILLION AND 00/100 UNITED STATES DOLLARS ($400,000,000.00) / ONE BILLION SIX HUNDRED MILLION AND 00/100 UNITED STATES DOLLARS ($1,600,000,000.00)] (or such lesser amount as shall equal the aggregate unpaid principal amount of the
Loans made by the Lender to the Borrowers under the Loan Agreement), on the dates and in the principal amounts provided in the Loan Agreement, and to pay interest on the unpaid principal amount of each such Loan, at such office, in like money and
funds, for the period commencing on the date of such Loan until such Loan shall be paid in full, at the rates per annum and on the dates provided in the Loan Agreement. 
  
 This Amended and Restated Promissory Note (this “Note”) is one of the “Notes” referred to in that
certain Second Amended and Restated Master Loan and Security Agreement, dated as of January 30, 2004 (as amended, restated, supplemented or otherwise modified and in effect from time to time, the “Loan Agreement”), among the
Borrowers, Morgan Stanley Bank, a Utah industrial loan corporation (“MSB”), as a lender, and Morgan Stanley Mortgage Capital Inc., a New York corporation, as a lender (in such capacity, together with MSB, collectively, the
“Lenders”) and as agent for the Lenders (in such capacity, the “Agent”). Capitalized terms used but not defined herein shall have the meanings specified in the Loan Agreement. 
  
 This Note amends and restates in its entirety the Promissory Note, dated
January 30, 2004 (the “Existing Note”), made by the Initial Borrowers in favor of the Lender and is given as a continuation, rearrangement and extension, and not a novation, release or satisfaction, of the Existing Note. Each
Initial Borrower hereby acknowledges and agrees that simultaneously with such Borrower’s execution and delivery of this Amended and Restated Promissory Note, the Lender has delivered to the Initial Borrowers the Existing Note. 
  

 A-1 

 Pursuant to and subject to the terms of the Loan Agreement, the Borrowers may borrow, repay and reborrow
funds until the Termination Date. In all events, the Borrowers shall repay the aggregate outstanding principal amount of all Loans plus all accrued interest thereon on the Termination Date. 
  
 Pursuant to the Loan Agreement, from time to time the Borrowers will be
required to pledge additional Collateral or to prepay Loans to cure a Borrowing Base Deficiency. 
  
 The date, amount and interest rate of each Loan made by the Lender to the Borrowers, and each payment made on account of the principal thereof, shall be
recorded by the Lender on its books and, prior to any transfer of this Note, endorsed by the Lender on the schedule attached hereto or any continuation thereof, provided, that the failure of the Lender to make any such recordation or endorsement
shall not affect the obligations of the Borrowers to make a payment when due of any amount owing under the Loan Agreement or hereunder in respect of the Loans made by the Lender. 
  
 The Borrowers agree, jointly and severally, to pay all the Lender’s costs of collection and enforcement (including
reasonable attorneys’ fees and disbursements of Lender’s counsel) in respect of this Note when incurred, including, without limitation, reasonable attorneys’ fees through appellate proceedings. 
  
 Notwithstanding the pledge of the Collateral, each Borrower hereby
acknowledges, admits and agrees that each Borrower’s obligations under this Note are recourse obligations of the Borrowers to which each Borrower pledges its full faith and credit. 
  
 The Borrowers, and any endorsers or guarantors hereof, (a) severally waive diligence, presentment, protest and demand and
also notice of protest, demand, dishonor and nonpayments of this Note, (b) expressly agree that this Note, or any payment hereunder, may be extended from time to time, and consent to the acceptance of further Collateral, the release of any
Collateral for this Note, the release of any party primarily or secondarily liable hereon, and (c) expressly agree that it will not be necessary for the Lender, in order to enforce payment of this Note, to first institute or exhaust the
Lender’s remedies against the Borrowers or any other party liable hereon or against any Collateral for this Note. No extension of time for the payment of this Note, or any installment hereof, made by agreement by the Lender with any person now
or hereafter liable for the payment of this Note, shall affect the liability under this Note of the Borrowers, even if the Borrowers are not a party to such agreement; provided, however, that the Lender and the Borrowers, by written agreement
between them, may affect the liability of the Borrowers. 
  
 Any
reference herein to the Lender shall be deemed to include and apply to every subsequent holder of this Note. Reference is made to the Loan Agreement for provisions concerning optional and mandatory prepayments, Collateral, acceleration and other
material terms affecting this Note. 
  
 This Note shall be
governed by, and construed and interpreted in accordance with, the laws of the State of New York, whose laws the Borrowers expressly elect to apply to this Note. The Borrowers agree that any action or proceeding brought to enforce or 

 

 A-2 

 arising out of this Note may, be commenced in the Supreme Court of the State of New York, Borough of Manhattan, or in
the District Court of the United States for the Southern District of New York. 
  
 [SIGNATURES FOLLOW] 
  

 A-3 

									
	 NC CAPITAL CORPORATION
	 	 	 	 NEW CENTURY MORTGAGE

	 	 	 	 	 CORPORATION

					
	By:	 	 	 	 	 	By:	 	 
	 	 	
	 	 	 	 	 	

	 	 	 Name:
	 	 	 	 	 	 Name:

	 	 	 Title:
	 	 	 	 	 	 Title:

			
	 NC RESIDUAL II CORPORATION
	 	 	 	 
					
	By:	 	 	 	 	 	 	 	 
	 	 	
	 	 	 	 	 	 
	 	 	 Name:
	 	 	 	 	 	 
	 	 	 Title:
	 	 	 	 	 	 

  

 A-4 

 SCHEDULE OF LOANS 
  

This Note evidences Loans made under the within-described Loan Agreement to the Borrowers, on the dates, in the principal amounts and bearing interest
at the rates set forth below, and subject to the payments and prepayments of principal set forth below: 
  

											
	 Date Made

	 	 Principal Amount
of Loan

	 	 Interest Rate

	 	 Amount Paid or
Prepaid

	 	 Unpaid Principal
Amount

	 	 Notation Made by

	 	 	 	 	 	 	 	 	 	 	 
	
	 	
	 	
	 	
	 	
	 	

	 	 	 	 	 	 	 	 	 	 	 
	
	 	
	 	
	 	
	 	
	 	

	 	 	 	 	 	 	 	 	 	 	 
	
	 	
	 	
	 	
	 	
	 	

	 	 	 	 	 	 	 	 	 	 	 
	
	 	
	 	
	 	
	 	
	 	

	 	 	 	 	 	 	 	 	 	 	 
	
	 	
	 	
	 	
	 	
	 	

	 	 	 	 	 	 	 	 	 	 	 
	
	 	
	 	
	 	
	 	
	 	

	 	 	 	 	 	 	 	 	 	 	 
	
	 	
	 	
	 	
	 	
	 	

	 	 	 	 	 	 	 	 	 	 	 
	
	 	
	 	
	 	
	 	
	 	

  
  

 A-5 

 Exhibit B 
  

Form of Secretary’s Certificate 
  
 Pursuant to Section 2.1(b) of that certain Amendment No. 1 and Joinder, dated as of May     , 2004 (the “First
Amendment”), to the Second Amended and Restated Master Loan and Security Agreement, dated as of January 30, 2004 (as amended, supplemented or otherwise modified prior to the date hereof, the “Existing Loan Agreement”; as
amended by the First Amendment and as further amended, restated, supplemented or otherwise modified and in effect from time to time, the “Loan Agreement”; capitalized terms used but not otherwise defined herein shall have the
meanings assigned thereto by the Loan Agreement), by and among NC CAPITAL CORPORATION (“NC Capital”), NEW CENTURY MORTGAGE CORPORATION (“New Century”, together with NC Capital, collectively, the “Initial
Borrowers”), NC RESIDUAL II CORPORATION (“NCRII”, together with NC Capital and New Century, collectively, the “Borrowers”, each, a “Borrower”), MORGAN STANLEY BANK (“MSB”)
and MORGAN STANLEY MORTGAGE CAPITAL INC. (“MSMCI”) (MSMCI, in its capacity as a lender, together with MSB, collectively, the “Lenders”, and in its capacity as agent for the Lenders, together with any successors and
assigns, the “Agent”), the undersigned hereby certifies on behalf of [New Century / NC Capital / NCRII] (the “Specified Borrower”) as follows: 
  
 (a) Attached hereto as “Annex A” are original certificates dated as of a recent date from the Secretary of
State or other appropriate authority evidencing the good standing of the Specified Borrower in its jurisdiction of organization; 
  
 (b) Attached hereto as “Annex B” is a true, correct and complete copy of the resolutions of the Specified Borrower, together with any and
all amendments thereto, authorizing the execution, delivery and performance of this Amendment and the borrowings contemplated thereunder, such resolutions having not been amended, modified, revoked or rescinded, and the same being in full force and
effect in the attached form as of the date hereof; 
  
 (c) [FOR
NEW CENTURY AND NC CAPITAL: Since the Effective Date of the Existing Loan Agreement there have been no changes to any of the organizational documents of the Specified Borrower delivered pursuant to Section 5.01 of the Loan Agreement and each
such document remains in full force and effect as of the date hereof;] [FOR NCRII: Attached hereto as “Annex C” are certified copies of the charter and by-laws (or equivalent documents) of the Specified Borrower;] 

 
 (d) The following named individuals are duly elected, qualified and acting
officers of the Specified Borrower, each such individual holding the office(s) set forth opposite his respective name as of the date hereof, and the signatures set forth beside the respective name and title of said officers and authorized
signatories are true, authentic signatures: 
  

					
	 Name

	 	 Title

	 	 Signature

	 	 	 	 	 
	
	 	
	 	

	 	 	 	 	 
	
	 	
	 	

	 	 	 	 	 
	
	 	
	 	

  
  
  
 [SIGNATURES FOLLOW] 
  
  

 B-1 

 IN WITNESS WHEREOF, the undersigned has hereunto executed this Secretary’s Certificate as of this
         day of
                                , 2004. 
  

			
		
	By:	 	 
	 	 	

	 	 	 Name:
 Title:

  
 The undersigned,
                                    , does hereby certify that
he is the duly elected and presently incumbent                                  of
the Specified Borrower and in such capacity does hereby certify to the Lender that
                                 is the duly elected and presently incumbent
Secretary of the Specified Borrower. 
  

			
		
	By:	 	 
	 	 	

	 	 	 Name:
 Title:

  

 B-2 

 Exhibit C-1 
  

FORM OF OPINION OF INTERNAL COUNSEL TO THE BORROWERS 
  

 Exhibit C-2 
  

FORM OF OPINION OF OUTSIDE COUNSEL TO THE BORROWERSSeries 2004-MC Supplement

 Exhibit 4.2 
  
 MELLON PREMIUM FINANCE LOAN OWNER TRUST 
  
 Transferor 
  
 AFCO CREDIT CORPORATION 
  
 Servicer 
  
 AFCO ACCEPTANCE CORPORATION 
  
 Servicer 
  
 PREMIUM FINANCING
SPECIALISTS, INC. 
  
 Back-up Servicer 
  
 PREMIUM FINANCING SPECIALISTS OF CALIFORNIA, INC. 
  
 Back-up Servicer 
  
 And 
  
 WELLS FARGO BANK, NATIONAL ASSOCIATION 
 Trustee

  
 on behalf of the Series 2004-MC Holders 
  

  
 SERIES 2004-MC SUPPLEMENT 
  
 Dated as of June [    ], 2004 
  
 To 
  
 AMENDED AND RESTATED

 POOLING AND SERVICING AGREEMENT 
  
 Dated as of June 15, 2001 
  

  
 MELLON BANK PREMIUM FINANCE LOAN MASTER TRUST 

 
 Series 2004-MC 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 SECTION 1.
	  	Designation	  	1
	 SECTION 2.
	  	Definitions	  	1
	 SECTION 3.
	  	Servicing Compensation.	  	9
	 SECTION 4
	  	Delivery of the Series 2004-MC Certificate	  	9
	 SECTION 5.
	  	Article IV of the Agreement	  	10
	 SECTION 6.
	  	Article V of the Agreement	  	17
	 SECTION 7.
	  	Series 2004-MC Pay Out Events	  	17
	 SECTION 8.
	  	Series 2004-MC Termination	  	19
	 SECTION 9.
	  	Application of Proceeds of Issuance of Series 2004-MC	  	19
	 SECTION 10.
	  	Counterparts	  	19
	 SECTION 11.
	  	Governing Law	  	19
	 SECTION 12.
	  	Additional Notices	  	19
	 SECTION 13.
	  	Additional Representations and Warranties of Servicer	  	19
	 SECTION 14.
	  	No Petition	  	20
	 SECTION 15.
	  	Amendments	  	20
	 SECTION 16.
	  	No Liability of Owner Trustee	  	20
	 SECTION 17.
	  	Treatment of Noteholders	  	21
	 SECTION 18.
	  	Transfer of the Series 2004-MC Certificate	  	21
	 SECTION 19.
	  	Certain Commercial Law Representations and Warranties	  	21

  

 -i- 

 EXHIBITS 
  

			
	EXHIBIT A	  	 Form of Certificate

	EXHIBIT B	  	 Form of Monthly Payment Instructions and Notification to Trustee

	EXHIBIT C	  	 Form of Monthly Series 2004-[    ] Holders’ Statement

  

 -ii- 

 SERIES 2004-MC SUPPLEMENT, dated as of June [    ], 2004 (this “Series
Supplement”), by and among MELLON PREMIUM FINANCE LOAN OWNER TRUST, a Delaware business trust, as Transferor, AFCO CREDIT CORPORATION, a New York corporation, as Servicer, AFCO ACCEPTANCE CORPORATION, a California corporation, as Servicer,
PREMIUM FINANCING SPECIALISTS, INC., a Missouri corporation, as Back-up Servicer, PREMIUM FINANCING SPECIALISTS OF CALIFORNIA, INC., a California corporation, as Back-up Servicer, and WELLS FARGO BANK, NATIONAL ASSOCIATION (successor by merger to
Wells Fargo Bank Minnesota, National Association), a national banking association, as Trustee under the Amended and Restated Pooling and Servicing Agreement, dated as of June 15, 2001 (the “Agreement”), by and among each Servicer,
each Back-up Servicer, the Transferor and the Trustee, as amended by Amendment No. 1 thereto, dated [            ]. 
  
 Section 6.9 of the Agreement provides, among other things, that the
Transferor and the Trustee may at any time and from time to time enter into a supplement to the Agreement for the purpose of authorizing the delivery by the Trustee to the Transferor for the execution and redelivery to the Trustee for authentication
of one or more Series of Certificates. 
  
 Pursuant to this Series
Supplement, the Transferor and the Trust shall create a new Series of Investor Certificates and shall specify the Principal Terms thereof. 
  
 SECTION 1. Designation. (a) There is hereby created a Series consisting of an Investor Certificate to be issued pursuant to the Agreement and this
Series Supplement and to be known as the “Series 2004-MC Certificate.” Such Investor Certificate shall be issued in one Class and shall be designated the Asset Backed Certificate, Series 2004-MC (the “Series 2004-MC
Certificate”). The Series 2004-MC Certificate shall be issued as one definitive certificate substantially in the form of Exhibit A hereto. 
  
 (b) Series 2004-MC shall be included in Group One (as defined below). Series 2004-MC shall not be subordinated to any other Series. 
  
 (c) Except as expressly provided herein, the provisions of Section 2.6 of the
Agreement shall not apply to cause the Series 2004-MC Certificate to be treated as debt for federal, state and local income and franchise tax purposes, but rather the Transferor intends and, together with the Series 2004-MC Certificateholders,
agrees to treat the Series 2004-MC Certificate for federal, state and local income and franchise tax purposes as representing an equity interest in the assets of the Trust. 
  
 (d) This Series Supplement is the Series 2004-MC Supplement referred to in the Amended and Restated Trust Agreement of the
Mellon Bank PFL Master Note Trust dated as of March 1, 2004, between Mellon Premium Finance Loan Owner Trust as depositor, Mellon Bank, National Association, as administrator, and Chase Manhattan Bank USA, National Association, as owner trustee.

  
 SECTION 2. Definitions. If any term or provision
contained herein shall conflict with or be inconsistent with any provision contained in the Agreement, the terms and provisions of this Series Supplement shall govern. References to any Article or Section are references to Articles or Sections of
the Agreement, except as otherwise expressly provided. All 

 capitalized terms not otherwise defined herein are defined in the Agreement, and the interpretive provisions set out in
Section 1.2 of the Agreement apply to this Series Supplement. Each capitalized term defined herein relates only to the Certificate and no other Series of Certificates issued by the Trust. 
  
 “Adjusted Outstanding Dollar Principal Amount” has the meaning specified in the Indenture. 
  
 “Aggregate Targeted Interest Deposit Amount” means the sum
of the Targeted Interest Deposit Amounts (as such term is defined in each of the related Indenture Supplements) for each outstanding series of Notes. 
  
 “Available Funds” means, with respect to any Monthly Period, an amount equal to the sum of (i) Collections of Finance Charge
Receivables allocated to the Series 2004-MC Certificate and deposited in the Finance Charge Account for such Monthly Period (or to be deposited in the Finance Charge Account on the related Transfer Date with respect to the preceding Monthly Period
pursuant to the third paragraph of Section 4.3(a) of the Agreement), plus (ii) Principal Account Investment Proceeds to be treated as Available Funds for such Monthly Period pursuant to Section 4.2(e) of the Agreement as amended by Section
5(a) of this Series Supplement, plus (iii) Finance Charge Account Investment Proceeds to be treated as Available Funds for such Monthly Period pursuant to Section 4.2(e) of the Agreement as amended by Section 5(a) of this Supplement,
plus (iv) the amount of Excess Finance Charge Receivables with respect to Group One that are allocated to Series 2004-MC in accordance with Section 4.9(b). 
  
 “Available Investor Principal Collections” means, for any Monthly Period, an amount equal to (a) the
Investor Principal Collections for such Monthly Period plus (b) the amount of Shared Principal Collections with respect to Group One that are allocated to Series 2004-MC in accordance with Section 4.9(b). 
  
 “Base Rate” has, with respect to any series of Notes, the
meaning specified in the related Indenture Supplement. 
  
 “Beginning of Month Principal Receivables” means, with respect to the Receivables and any Monthly Period, an amount equal to the Aggregate Receivables as of the first day of such Monthly Period (or, in the case of the
Monthly Period commencing [            ], as of the Closing Date) minus Finance Change Receivables as of such date. 
  
 “Business Day” means any day other than a Saturday, a Sunday or a day on which banking institutions in New
York, New York, Minneapolis, Minnesota or Pittsburgh, Pennsylvania are authorized or obligated by law or executive order to be closed. 
  
 “Certificate Representative” means (a) if there is one Holder of the Series 2004-MC Certificate, such Holder or the designee of such
Holder, and (b) if there is more than one Holder of the Series 2004-MC Certificate, the designee of the Holders of a majority of the outstanding principal Balance of the Series 2004-MC Certificate. 
  

 -2- 

 “Closing Date” means
[            ], 2004. 
  
 “Cumulative Series Interest Shortfall” means the sum of the Series Interest Shortfalls (as such term is defined in each of the related Supplements) for each Series in Group One. 
  
 “Cumulative Series Principal Shortfall” means the sum of the
Series Principal Shortfalls (as such term is defined in each of the related Supplements) for each Series in Group One. 
  
 “Distribution Date” means [            ], 2004 and the fifteenth day
of each calendar month thereafter, or if such fifteenth day is not a Business Day, the next succeeding Business Day. 
  
 “Excess Aggregate Tier 3 Insurer Concentration Amount” means, as of any date of determination, Aggregate Receivables relating to the
financing of the insurance premiums of Tier 3 Insurers in excess of 30% of Aggregate Receivables as of that date of determination. 
  
 “Excess Aggregate Tier 4 Insurer Concentration Amount” means, as of any date of determination, Aggregate Receivables relating to the
financing of the insurance premiums of Tier 4 Insurers in excess of 5% of Aggregate Receivables as of that date of determination. 
  
 “Excess Finance Charge Collections” means, as the context requires, either (a) the amount allocated to the Series 2004-MC Certificate
that may be applied to the Series Finance Charge Shortfall with respect to other outstanding Series in Group One or (b) the amounts allocated to the investor certificates of other Series in Group One that the applicable Supplements for such Series
specify are to be treated as “Excess Finance Charge Collections” and that may be applied to cover the Series Finance Charge Shortfall with respect to the Series 2004-MC Certificate. 
  
 “Excess Insurer Concentration Amount” means, as of any date
of determination, an amount equal to the sum of (i) with respect to Lloyd’s of London, if Lloyd’s of London has a financial strength or corporate debt rating from Standard and Poor’s of at least A-, the amount by which aggregate
receivables relating to the financing of insurance premiums of Lloyd’s of London, as a percentage of aggregate receivables, exceeds 15%, or if such ratings of Lloyd’s of London are below such levels, 5%; (ii) with respect to American
International Group, Inc. and its Affiliates and subsidiaries, if American International Group, Inc., has a financial strength rating, or if not available, a corporate debt rating, from Standard and Poor’s of at least AA- and a financial
strength rating, or if not available, corporate debt rating, from Moody’s of at least Aa3, the amount by which aggregate receivables relating to the financing of insurance premiums of American International Group, Inc. and its Affiliates and
subsidiaries, as a percentage of aggregate receivables, exceeds 35%, or if such ratings of American International Group, Inc., are below such levels, as determined pursuant to the applicable following clause; (iii) with respect to each Tier 1
Insurer, the amount by which aggregate receivables relating to the financing of insurance premiums of such Tier 1 Insurer, as a percentage of aggregate 
  

 -3- 

 receivables, exceeds 20%; (iv) with respect to each Tier 2 Insurer, the amount by which aggregate receivables relating to
the financing of insurance premiums of such Tier 2 Insurer, as a percentage of aggregate receivables, exceeds 10%; (v) with respect to each Tier 3 Insurer, the amount by which aggregate receivables relating to the financing of insurance premiums of
such Tier 3 Insurer, as a percentage of aggregate receivables, exceeds 5% of aggregate receivables; (vi) with respect to each Tier 4 Insurer, the amount by which aggregate receivables relating to the financing of insurance premiums of such Tier 4
Insurer, as a percentage of aggregate receivables, exceeds 3% of aggregate receivables; for the avoidance of doubt, if more than one clause (i)-(vi) above is applicable with respect to an insurer, the portion of the Excess Insurer Concentration
Amount with respect to such insurer shall be determined pursuant to the first applicable clause, in such order as set forth above; provided, however, that notwithstanding anything to the contrary contained in Section 13.1 of the
Agreement, the percentages herein may be increased at any time by the Servicer, and the Transferor with the consent of any Credit Enhancement Provider, but without the consent of the Holders, if the Rating Agency Condition has been satisfied with
respect to such increase. 
  
 “Fixed Investor
Percentage” means, with respect to any Monthly Period, the percentage equivalent of a fraction, the numerator of which is the Principal Allocation Amount as of the close of business on the last day of the preceding Monthly Period,
and the denominator of which is the greater of (a) the aggregate amount of Beginning of Month Principal Receivables for such Monthly Period and (b) the sum of the numerators used to calculate the Investor Percentages (as such term is
defined in the Agreement) for allocations with respect to Principal Receivables for all outstanding Series for such Monthly Period; provided that with respect to any Monthly Period in which a Reset Date occurs, the denominator determined
pursuant to clause (a) shall be (i) the aggregate amount of Beginning of Month Principal Receivables for such Monthly Period for the period from and including the first day of such Monthly Period to but excluding the Reset Date and (ii) the
aggregate amount of Principal Receivables in the Trust as of the beginning of the day on the Reset Date (after adjusting for the aggregate amount of Principal Receivables added to or removed from the Trust on the Reset Date, if applicable), for the
period from and including the Reset Date to and including the last day of such Monthly Period. 
  
 “Floating Allocation Investor Interest” means, on any date of determination during any Monthly Period, an amount equal to the aggregate Available Funds Allocation Amount (as defined in the Indenture)
for all series of Notes. 
  
 “Floating Investor
Percentage” means, with respect to any Monthly Period, the percentage equivalent of a fraction, the numerator of which is the aggregate Nominal Liquidation Amount for all Notes issued by the Issuer as of the close of business on the
last day of the preceding Monthly Period (or with respect to the first Monthly Period, the Initial Notes) and the denominator of which is the greater of (a) the aggregate amount of Beginning of Month Principal Receivables for the
related Monthly Period, and (b) the sum of the numerators used to calculate the Investor Percentages (as such term is defined in the Agreement) for allocations with respect to Finance Charge Receivables or, Default Amounts, as applicable, for all
outstanding Series on such date of determination; provided that with respect to any Monthly Period in which a Reset Date occurs, the denominator determined pursuant to clause (a) shall be (i) the aggregate amount of Principal Receivables in
the Trust as of the beginning of the day on the Reset Date for the 
  

 -4- 

 period from and including the first day of such Monthly Period (or in the case of the first Monthly Period, the Closing
Date) to but excluding the Reset Date and (ii) the aggregate amount of Principal Receivables in the Trust as of the beginning of the day on the Reset Date (after adjusting for the aggregate amount of Principal Receivables added to or removed from
the Trust on the Reset Date, if applicable), for the period from and including the Reset Date to and including the last day of such Monthly Period. 
  
 “Group One” means Series 2004-MC and each other Series specified in the related Supplement to be included in Group One. 
  
 “Indenture” means the Indenture, dated as of June
[    ], 2004, between Mellon Bank PFL Master Note Trust, as Issuer, and Wells Fargo Bank, National Association, as Indenture trustee, as amended and supplemented from time to time. 
  
 “Indenture Supplement” has the meaning specified in the
Indenture. 
  
 “Initial Investor Interest” shall
mean, when used in the Agreement, this Series Supplement or any other Supplement with respect to Series 2004-MC and with respect to any Monthly Period, the Initial Dollar Principal Amount (as defined in the Indenture) of any Outstanding series or
class of Notes. 
  
 “Initial Notes” means the
Mellon Bank PFL Master Note Trust Asset-Backed Notes, Series 2004-1, Class A, Class B, Class C and Class D. 
  
 “Investor Default Amount” means, for any Monthly Period, an amount equal to the product of (a) the Default Amount and (b) the
Floating Investor Percentage, in each case for such Monthly Period. 
  
 “Investor Interest” means, on any date of determination, an amount equal to the sum of the Nominal Liquidation Amounts for each class of Notes Outstanding as of such date of determination. 
  
 “Investor Monthly Interest” has the meaning specified in the
Indenture. 
  
 “Investor Percentage” means, for
any Monthly Period, (a) with respect to Finance Charge Receivables, Finance Charge Collections and Default Amounts at any time, the Floating Investor Percentage and (b) with respect to Principal Receivables and Principal Collections, the Fixed
Investor Percentage. 
  
 “Investor Principal
Collections” means, with respect to any Monthly Period, the sum of (a) the aggregate amount deposited or required to be deposited (before giving effect to any permitted netting) into the Principal Account for such Monthly Period
pursuant to Section 4.7(a)(ii) or 4.7(b)(ii), in each case, as applicable to such Monthly Period and (b) the aggregate amount of Unallocated Principal Collections deposited or required to be deposited on the related Transfer Date (before giving
effect to any permitted netting) into the Principal Account pursuant to Section 4.7(c). 
  
 “Investor Servicing Fee” is defined in Section 3 of this Series Supplement. 
  

 -5- 

 “Investor Trustee Fee” means, for any Transfer Date, the product of the Floating
Investor Percentage for the related Monthly Period and the Trustee Fee for such Transfer Date. 
  
 “Issuer” means the Mellon Bank PFL Master Note Trust, a Delaware statutory trust. 
  
 “Legal Maturity Date” has, with respect to any class of Notes, the meaning specified in the Indenture. 
  
 “Mellon Bank” means Mellon Bank, N.A., a national banking
association. 
  
 “Minimum Aggregate Principal
Receivables” means, as of any date of determination, an amount equal to the sum of the numerators used to calculate the Investor Percentage with respect to the allocation of Principal Collections for each Series outstanding on such date;
provided, however, that if the series supplement for any series of Notes designated to be a Paired Series (as such term is defined in the Indenture) so provides, the Nominal Liquidation Amount for such series of Notes shall not be
included in the calculation of Principal Collections for so long as such series of Notes remains paired with another series of Notes. 
  
 “Minimum Transferor Interest” means as of any date of determination, an amount equal to [3]% of the sum of (a) the aggregate amount of
Principal Receivables as of such date of determination plus (b) the amount on deposit in the Excess Funding Account on the date of determination[; plus (c) the amount on deposit in the Principal Funding Account]; provided, however,
that the percentage used to determine the Minimum Transferor Interest shall not be less than the percentage used to determine the Minimum Transferor Interest for any other outstanding Series. 
  
 “Monthly Interest Period” means, with respect to any
Distribution Date, the period from and including the immediately preceding Distribution Date (or, in the case of the first Monthly Interest Period, the Closing Date) to but excluding such Distribution Date. 
  
 “Monthly Payment Rate” means, in respect of any Monthly
Period, a fraction (expressed as a percentage), the numerator of which shall equal the aggregate Collections received by the Servicer during such Monthly Period and the denominator of which shall equal the aggregate amount of Principal Receivables
as of the close of business on the fifteenth day of such Monthly Period (or, if such day is not a Business Day, the immediately succeeding Business Day). 
  
 “Monthly Period” is defined in the Agreement, except that, with respect to Principal Collections, the first Monthly Period for the
Investor Certificates begins on and includes the Closing Date and ends on and includes [            ], 2004. 
  
 “Monthly Principal Target” means, with respect to each Monthly Period, an amount equal to the aggregate
Targeted Principal Deposit Amounts (as defined in the Indenture) for all Series of Notes for such Monthly Period. 
  

 -6- 

 “Net Portfolio Yield” has, with respect to any series of Notes, the meaning specified in
the related Indenture Supplement. 
  
 “Nominal Liquidation
Amount” has, with respect to any series of Notes, the meaning specified in the Indenture. 
  
 “Note” has the meaning specified in the Indenture. 
  
 “Noteholder” has the meaning specified in the Indenture. 
  
 “Pay Out Commencement Date” means the date on which a Trust
Pay Out Event is deemed to occur pursuant to Section 9.1 of the Agreement or a Series 2004-MC Pay Out Event is deemed to occur pursuant to Section 7 of this Series Supplement. 
  
 “Principal Account” is defined in Section 4.10(a). 
  
 “Principal Account Investment Proceeds” means, with respect
to each Transfer Date, the investment earnings on deposits of Collections of Principal Receivables for the related Monthly Period in the Principal Account (net of investment expenses and losses) for the period from and including the first day of the
related Monthly Period to but excluding such Transfer Date. 
  
 “Principal Allocation Amount” means, on any date during any month for any class or Series (exclusive of (x) any Notes within such class or Series which will be paid in full during such month and (y) any Notes which will
have a Nominal Liquidation Amount of zero during such month), an amount equal to the sum of (a) for any class or Series in a note accumulation period, the sum of the Nominal Liquidation Amounts for such Notes as of the close of business on
the day prior to the commencement of the most recent note accumulation period for such Notes, and (b) for all other Notes, the sum of the Nominal Liquidation Amounts for such notes as of the close of business on the last day of the immediately
preceding month (or, with respect to the first month for any such Notes, the initial dollar principal amount of such Notes). 
  
 “Principal Funding Account” has, with respect to any series of Notes, the meaning specified in the related Indenture Supplement.

  
 “Rapid Amortization Period” means the period
commencing on the Pay Out Commencement Date and ending on the Series 2004-MC Termination Date. 
  
 “Rating Agency” means, so long as any series of Notes is rated by Moody’s, Moody’s, so long as any series of Notes is rated by Standard & Poor’s, Standard & Poor’s and, so
long as any series of Notes is rated by Fitch, Fitch. 
  
 “Rating Agency Condition” means the notification in writing by each Rating Agency to the Transferor, the Servicer and the Trustee that an action will not result in any Rating Agency reducing or withdrawing its then existing
rating of the Investor Certificates (as defined in the Agreement) of any outstanding Series or class of a Series with respect to which it is a Rating Agency. 
  

 -7- 

 “Remaining Trustee Fee” for any Transfer Date, an amount equal to any
portion of the Investor Trustee Fee not paid out of Available Funds. 
  
 “Reset Date” means (a) any date on which Receivables are removed from the Trust pursuant to Section 2.6 of the Agreement or any date on which, if any Series has been paid in full, Principal Receivables in an
aggregate amount approximately equal to the Initial Investor Interest of such Series are removed from the Trust or (b) any date on which there is an increase in the Investor Interest under any Variable Interest issued by the Trust. 
  
 “Revolving Period” means the period from and
including the Closing Date, to but not including the Pay Out Commencement Date. 
  
 “Series 2004-MC” means the Series of the Mellon Bank Premium Finance Loan Master Trust represented by the Series 2004-MC Certificates. 
  
 “Series 2004-MC Holders” means the holders of
record of the Series 2004-MC Certificate. 
  
 “Series 2004-MC Monthly Principal Payment” means, with respect to any Monthly Period, an amount equal to the aggregate Monthly Principal Payments (as defined in the Indenture) for each Series of Notes for such
Monthly Period. 
  
 “Series 2004-MC Pay Out
Event” is defined in Section 7 of this Series Supplement. 
  
 “Series 2004-MC Termination Date” means the earlier to occur of (a) the date designated by the Transferor following the last Legal Maturity Date of any series or class of Notes,
and (b) the Trust Termination Date. 
  
 “Series Interest
Shortfall” means, with respect to any Transfer Date, the excess, if any, of the sum of the Aggregate Targeted Interest Deposit Amount for all outstanding series of Notes for the related Monthly Period over the sum of the Excess
Available Funds (as defined in the Indenture) for all outstanding series of Notes for the related Monthly Period. 
  
 “Series Principal Shortfall” means, with respect to any Transfer Date, the excess, if any, of the sum of the Principal Shortfalls
(as defined in the Indenture) for all series of Notes for the related Monthly Period over the sum of the Principal Excesses (as defined in the Indenture) for all series of Notes for the related Monthly Period. 
  
 “Series Servicing Fee Percentage” means 0.50%. 

 
 “Shared Principal Collections” means, as
the context requires, either (a) the amount allocated to the Series 2004-MC Certificate that may be applied to the Series Principal Shortfall with respect to other outstanding Series in Group One or (b) the amounts allocated to the investor
certificates of other Series in Group One that the applicable Supplements for such Series specify are to be treated as “Shared Principal Collections” and that may be applied to cover the Series Principal Shortfall with respect to the
Series 2004-MC Certificate. 
  

 -8- 

 “Split Rating Determination Methodology” means, for purposes of
determining whether an insurance carrier is a Tier 1 Insurer, a Tier 2 Insurer, a Tier 3 Insurer or a Tier 4 Insurer, in the event that (i) an insurance carrier has a split rating from Moody’s and Standard & Poor’s, such insurance
carrier will be considered to have a single rating equal to the lower of the two ratings and (ii) in the event that an insurance carrier (other than Lloyd’s of London) is rated by one but not both rating agencies, that rating will be reduced by
one full rating category. 
  
 “Tier 3
Insurer” means, as of any date of determination (applying, if applicable, the Split Rating Determination Methodology), (i) an insurance carrier (that is not a foreign carrier, except for Lloyd’s of London) that has a then
current (a) claims-paying ability rating, if available, or otherwise unsecured rating, of below investment grade (investment grade being a rating in one of the top four generic rating categories, irrespective of any plus or minus) from Standard
& Poor’s and/or (b) insurance financial strength rating, if available, or otherwise unsecured rating, of below investment grade (investment grade being a rating in one of the top four generic rating categories, irrespective of any plus or
minus) by Moody’s or (ii) an insurance carrier (that is not a foreign carrier, except for Lloyd’s of London) that has been rated by neither Standard & Poor’s nor Moody’s. 
  
 “Tier 4 Insurer” means, as of any date of determination, a
foreign insurance carrier (other than Lloyd’s of London) that would otherwise be a Tier 3 Insurer. 
  
 “Trustee Fee” means an amount equal to one twelfth of the Trustee’s annual fee of
$[            ], plus additional expenses of the Trustee, not to exceed $[            ] per annum. 
  
 “Unallocated Principal Collections” is defined in Section
4.7(c). 
  
 “Weighted Average Floating Allocation
Investor Interest” means, with respect to any Monthly Period, the sum of the Floating Allocation Investor Interests as of the close of business on each day during such Monthly Period divided by the actual number of days
in such Monthly Period. 
  
 SECTION 3. Servicing
Compensation. The share of the Servicing Fee allocable to the Series 2004-MC Certificate with respect to any Transfer Date (the “Investor Servicing Fee”) shall be equal to one-twelfth of the product of (i) the Series
Servicing Fee Percentage and (ii) the Weighted Average Floating Allocation as of the last day of the Monthly Period preceding such Transfer Date; provided that, with respect to the first Transfer Date, the Investor Servicing Fee shall equal
$[            ]. Except as specifically provided above, the Servicing Fee shall be paid by the cash flows from the Trust allocated to the Transferor or the certificateholders of
other Series (as provided in the related Supplements) and in no event shall the Trust, the Trustee or the Series 2004-MC Holders be liable therefor. 
  
 SECTION 4. Delivery of the Series 2004-MC Certificate. 
  
 (a) The Transferor shall execute and deliver the Series 2004-MC Certificate to the Trustee for authentication in accordance with Section 6.1 of the
Agreement. The Trustee shall deliver shall Certificate when authenticated in accordance with Section 6.2 of the Agreement. 
  

 -9- 

 (b) The Series 2004-MC Certificate shall be delivered as a Registered Certificate as provided in Section
6.1 of the Agreement. 
  
 (c) The Series 2004-MC Certificate shall
constitute a “security” within the meaning of (i) Article 8 of the Uniform Commercial Code (including Section 8-102(a)(15) thereof) as in effect from time to time in the State of Delaware and (ii) the Uniform Commercial Code of any other
applicable jurisdiction that presently or hereafter substantially includes the 1994 revisions to Article 8 thereof as adopted by the American Law Institute and the National Conference of Commissioners on Uniform State Laws and approved by the
American Bar Association on February 14, 1995. 
  
 (d) When issued
and sold in accordance with the terms of the Agreement, including when duly executed and authenticated by the Trustee in accordance with the terms of the Agreement and when issued and delivered against payment therefore, the Series 2004-MC
Certificate will be duly and validly issued and outstanding, fully paid, non-assessable, and entitled to the benefits of the Agreement. 
  
 SECTION 5. Article IV of the Agreement. 
  
 (a) Notwithstanding any provision of the Agreement or this Series Supplement to the contrary, Section 4.2(e) of the Agreement shall be amended to provide
that on each Transfer Date the Trustee, at the Servicer’s direction given on or before such Transfer Date, shall (i) treat as Available Funds in accordance with Section 4.6(a) Series 2004-MC’s pro rata portion of Finance Charge
Account Investment Proceeds with respect to such Transfer Date based on the ratio of the aggregate amount on deposit in the Finance Charge Account with respect to Series 2004-MC for the related Monthly Period at the commencement of such Transfer
Date to the aggregate amount on deposit in the Finance Charge Account for the related Monthly Period at the commencement of such Transfer Date and (ii) treat as Available Funds in accordance with Section 4.6(a) Series 2004-MC’s pro rata
portion of Principal Account Investment Proceeds with respect to such Transfer Date based on the ratio of the aggregate amount on deposit in the Principal Account with respect to Series 2004-MC at the commencement of such Transfer Date to the
aggregate amount on deposit in the Principal Account at the commencement of such Transfer Date. 
  
 (b) Sections 4.1 through 4.5 shall read in their entirety as provided in the Agreement. Article IV (except for Sections 4.1 through 4.5 thereof) shall be
read in its entirety as follows and shall be applicable only to the Investor Certificates: 
  
 ARTICLE IV 
 RIGHTS OF HOLDERS AND ALLOCATION AND 
 APPLICATION OF COLLECTIONS 
  
 SECTION 4.6 Rights of Series 2004-MC Certificateholders. The Series 2004-MC Certificate shall represent undivided interests in the Trust, consisting of the right to receive, to the extent necessary to make the
required payments with respect to the Series 2004-MC Certificate at the times and in the amounts specified in this Agreement, (a) the Floating Investor Percentage and Fixed Investor Percentage (as applicable from time to time) of Collections

  

 -10- 

 received with respect to the Receivables and (b) funds on deposit in the Collection Account, the Excess Funding Account,
the Finance Charge Account, the Principal Account and the Distribution Account. The Transferor shall not have any interest in the Collection Account, the Excess Funding Account, the Finance Charge Account, the Principal Account or the Distribution
Account, except as specifically provided in this Article IV. 
  
 SECTION 4.7 Allocations. 
  
 (a) Allocations
During the Revolving Period. During the Revolving Period, the Servicer shall, prior to the close of business on the day any Collections are deposited in the Collection Account, allocate to the Series 2004-MC Certificateholders and pay or deposit
from the Collection Account the following amounts as set forth below (subject to Section 4.3): 
  
 (i) Allocate to the Series 2004-MC Certificateholders and deposit into the Finance Charge Account an amount equal to the product of (A) the
Floating Investor Percentage on the Date of Processing of such Collections and (B) the Finance Charge Collections on such Date of Processing, to be applied in accordance with Section 4.8. 
  
 (ii) Allocate to the Series 2004-MC Certificateholders and deposit into the
Principal Account an amount equal to the product of (1) the Fixed Investor Percentage on the Date of Processing of such Collections and (2) the aggregate amount of Principal Collections on such Date of Processing. 
  
 (b) Allocations During the Rapid Amortization Period. During the Rapid
Amortization Period, the Servicer shall, prior to the close of business on the day any Collections are deposited in the Collection Account, allocate to the Series 2004-MC Certificateholders or the Transferor and pay or deposit from the Collection
Account the following amounts as set forth below (subject to Section 4.3): 
  
 (i) Deposit into the Finance Charge Account an amount equal to the product of (A the Floating Investor Percentage on the Date of Processing of such Collections and (B) the aggregate amount of Collections
processed in respect of Finance Charge Receivables on such Date of Processing, to be applied in accordance with Section 4.8. 
  
 (ii) (A) Deposit into the Principal Account an amount equal to the product of (1) the Fixed Investor Percentage on the Date of Processing of such
Collections and (2) the aggregate amount of Principal Collections on such Date of Processing, provided that the aggregate amount deposited into the Principal Account pursuant to this Section 4.7(b)(ii)(A) shall not exceed the Investor
Interest as of the close of business on the last day of the prior Monthly Period (after taking into account any payments to be made on the Distribution Date relating to such prior Monthly Period and deposits and any adjustments to be made to the
Investor Interest to be made on the Transfer Date relating to such Monthly Period), and (B) pay to the Transferor an amount equal to the excess, if any, identified in the proviso to clause (A) above, provided that the amount to be paid to the
Transferor pursuant 
  

 -11- 

 to this Section 4.7(b)(ii)(B) with respect to any Date of Processing shall be paid to the Transferor only
to the extent that the Transferor Interest on such Date of Processing is greater than zero (after giving effect to the inclusion in the Trust of all Receivables transferred to the Trust on or prior to such Date of Processing and the application of
payments referred to in Section 4.3(b)) and otherwise shall be deposited into the Excess Funding Account in accordance with Section 4.7(c). 
  
 (c) Excess Funding Account. Any Principal Collections not allocated and paid to the Transferor because of the limitation contained in Section
4.7(b)(ii)(B) and any amounts allocable to the Investor Certificates deposited in the Principal Account pursuant to Section 2.4(d)(iii) of the Agreement (“Unallocated Principal Collections”) shall be held in the Excess Funding
Account and, prior to the commencement of the Rapid Amortization Period shall be paid to the Transferor when, and only to the extent that, the Transferor Interest is greater than zero. For each Transfer Date with respect to the Rapid Amortization
Period, any such Unallocated Principal Collections held in the Excess Funding, Account on such Transfer Date shall be included in the Investor Principal Collections which, to the extent available, shall be distributed as Available Investor Principal
Collections to be applied pursuant to Section 4.8 on such Transfer Date. 
  
 With respect to the Investor Certificates, and notwithstanding anything in the Agreement or this Series Supplement to the contrary, if at any time the Servicer is required to make daily deposits from the Collection
Account into the Finance Charge Account or the Principal Account pursuant to Sections 4.7(a) and 4.7(b) with respect to any Monthly Period: 
  
 (i) on or after the related Determination Date, the Servicer may withdraw from the Finance Charge Account and the Principal Account any portion of the
principal balance held in each such account in excess of the aggregate amount that will be required to be distributed to Series 2004-MC Certificateholders or distributed in accordance with the Indenture (directly or after deposit into the
Distribution Account) on the related Distribution Date and transfer such funds to the Transferor (except that any such excess amount held in the Principal Account and any portion of such excess amount held in the Finance Charge Account that would
have been treated as a portion of Investor Principal Collections on the related Transfer Date shall be transferred to the Transferor only to the extent that the Transferor Interest on the date of transfer is greater than zero (after giving effect to
the inclusion in the Trust of all Receivables transferred to the Trust on or prior to such date and the application of payments referred to in Section 4.3(b)) and otherwise shall be deposited into the Excess Funding Account in accordance with the
first paragraph of this Section 4.7(c); and 
  
 (ii) on any date,
the Servicer may withdraw from the Collection Account, the Finance Charge Account or the Principal Account any amounts inadvertently deposited in such account that should not have been so deposited. 
  
 SECTION 4.8 Monthly Payments. On or before the second Business Day
prior to each Transfer Date, the Servicer shall instruct the Trustee in writing (which writing shall be substantially in the form of Exhibit B) to withdraw, and the Trustee, acting in accordance with such instructions, shall withdraw on such
Transfer Date or the related Distribution Date, as 
  

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 applicable, to the extent of available funds, the amounts required to be withdrawn from the Finance Charge Account and
the Principal Account as follows: 
  
 (a) An amount equal to the
Available Funds for the related Monthly Period shall be distributed or deposited on each Transfer Date, to the extent available, in the following priority: 
  
 (i) an amount equal to the Investor Trustee Fee shall be distributed to the Trustee; 
  
 (ii) an amount equal to the lesser of (A) the Available Funds for such Transfer Date and (B) an amount equal to the
Aggregate Targeted Interest Deposit Amount for the related Monthly Period shall be paid on each Transfer Date to the Series 2004-MC Certificateholders in accordance with Section 5.1; 
  
 (iii) an amount equal to the lesser of (A) the product of (1) a fraction, the numerator of which is
equal to the Available Funds remaining after the application specified in Section 4.8(a)(ii) and the denominator of which is equal to the sum of the Available Funds available for sharing as specified in the related Series Supplement
for each Series in Group One and (2) the Cumulative Series Interest Shortfall and (B) such remaining Available Funds, shall remain in the Finance Charge Account to be treated as Excess Finance Charge Collections and applied to Series in Group One
other than this Series 2004-MC; and 
  
 (iv) the balance, if any,
shall be distributed to the Series 2004-MC Certificateholders in accordance with Section 5.1. 
  
 (b) During the Revolving Period, an amount equal to the Available Investor Principal Collections for the related Monthly Period shall be distributed on each Transfer Date, to the extent available, in the following
priority: 
  
 (i) an amount equal to the lesser of (A) the
Available Investor Principal Collections for such Transfer Date and (B) an amount equal to the Series 2004-MC Monthly Principal Payment for the related Monthly Period shall be paid on each Transfer Date to the Series 2004-MC Certificateholders in
accordance with Section 5.1; 
  
 (ii) an amount equal to the
lesser of (A) the product of (1) a fraction, the numerator of which is equal to the Available Investor Principal Collections remaining after the application specified in Section 4.8(b)(i) and the denominator of which is
equal to the sum of the Available Investor Principal Collections available for sharing as specified in the related Series Supplement for each Series in Group One and (2) the Cumulative Series Principal Shortfall and (B) such remaining Available
Investor Principal Collections, shall remain in the Principal Account to be treated as Shared Principal Collections and applied to Series in Group One other than this Series 2004-MC; and 
  

 -13- 

 (iii) an amount equal to the excess, if any, of (A) the Available Investor Principal Collections
for such Transfer Date over (B) the applications specified in Sections 4.8(b)(i) and (ii) above shall be paid to the Transferor, provided that the amount to be paid to the Transferor pursuant to this Section 4.8(b)(iii) with respect to
such Transfer Date shall be paid to the Transferor only to the extent that the Transferor Interest on such Transfer Date is greater than zero (after giving effect to the inclusion in the Trust of all Receivables transferred to the Trust on or prior
to such Transfer Date and the application of payments referred to in Section 4.3(b)) and otherwise shall be deposited into the Excess Funding Account in accordance with Section 4.7(c). 
  
 (c) During the Rapid Amortization Period, an amount equal to the Available Investor Principal Collections for the related
Monthly Period shall be distributed on each Transfer Date, to the extent available, in the following priority: 
  
 (i) an amount equal to the Investor Interest shall be paid on each to the Series 2004-MC Certificateholders in accordance with Section 5.1; and

  
 (ii) an amount equal to the excess, if any, of (A) the
Available Investor Principal Collections over (B) the applications specified in Section 4.8(c)(i) shall be paid to the Transferor, provided that the amount to be paid to the Transferor pursuant to this Section 4.8(c)(ii) with respect
to such Transfer Date shall be paid to the Transferor only to the extent that the Transferor Interest on such Transfer Date is greater than zero (after giving effect to the inclusion in the Trust of all Receivables transferred to the Trust on or
prior to such Transfer Date and the application of payments referred to in Section 4.3(b)) and otherwise shall be deposited into the Excess Funding Account in accordance with Section 4.7(c). 
  
 SECTION 4.9 Shared Principal Collections and Excess Finance Charge
Collections. (a) The portion of Shared Principal Collections on deposit in the Principal Account equal to the amount of Shared Principal Collections allocable to Series 2004-MC on any Transfer Date shall be applied as Available Investor
Principal Collections pursuant to Section 4.8 and pursuant to such Section 4.8 shall be paid on such Transfer Date to the Certificate Representative. The portion of Excess Finance Charge Collections on deposit in the Finance Charge Account equal to
the amount of Excess Finance Charge Collections allocable to Series 2004-MC on any Transfer Date shall be applied as Available Funds pursuant to Section 4.8 and pursuant to such Section 4.8 shall be paid on such Transfer Date to the Certificate
Representative. 
  
 (d) Shared Principal Collections allocable to
Series 2004-MC with respect to any Transfer Date means an amount equal to the Series Principal Shortfall, if any, with respect to Series 2004-MC for such Transfer Date, provided that if the aggregate amount of Shared Principal Collections for
all Series for such Transfer Date is less than the Cumulative Series Principal Shortfall for such Transfer Date, then Shared Principal Collections allocable to Series 2004-MC on such Transfer Date shall equal the product of (i) Shared
Principal Collections for all Series for such Transfer Date and (ii) a fraction, the numerator of which is the Series Principal Shortfall with respect to Series 2004-MC for such Transfer Date and the denominator of which is 

 

 -14- 

 the aggregate amount of Cumulative Series Principal Shortfall for all Series for such Transfer Date. Excess Finance
Charge Collections allocable to Series 2004-MC with respect to any Transfer Date means an amount equal to the Series Interest Shortfall, if any, with respect to Series 2004-MC for such Transfer Date, provided that if the aggregate amount of
Excess Finance Charge Collections for all Series for such Transfer Date is less than the Cumulative Series Interest Shortfall for such Transfer Date, then Excess Finance Charge Collections allocable to Series 2004-MC on such Transfer Date shall
equal the product of (i) Excess Finance Charge Collections for all Series for such Transfer Date and (ii) a fraction, the numerator of which is the Series Interest Shortfall with respect to Series 2004-MC for such Transfer Date and the
denominator of which is the aggregate amount of Cumulative Series Interest Shortfall for all Series for such Transfer Date. 
  
 (c) Solely for the purpose of determining the amount of Available Investor Principal Collections to be treated as Shared Principal Collections and
Available Funds to be treated as Excess Finance Charge Collections on any Transfer Date allocable to other Series in Group One, on each Determination Date, the Servicer shall determine the amount of Shared Principal Collections and Excess Finance
Charge Collections with respect to Series 2004-MC as of such Determination Date for the following Transfer Date. 
  
 SECTION 4.10 Principal Account. (a) The Trustee shall establish and maintain in the name of the Trust, on behalf of the Trust, for the benefit of
the Investor Holders, a segregated trust account (the “Principal Account”) bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Investor Holders, or establish and maintain the
Principal Account with a Qualified Institution. The Trustee shall possess all right, title and interest in all funds on deposit from time to time in the Principal Account and in all proceeds thereof. The Principal Account shall be under the sole
dominion and control of the Trustee for the benefit of the Investor Holders. If at any time a Qualified Institution holding the Principal Account ceases to be a Qualified Institution, the Transferor shall notify the Trustee, and the Trustee upon
being notified (or the Servicer on its behalf) shall, within 10 Business Days, establish a new Principal Account meeting the conditions specified above, and shall transfer any cash or any investments to such new Principal Account. The Trustee, at
the direction of the Servicer, shall make withdrawals from the Principal Account from time to time in the amounts and for the purpose set forth in this Series Supplement). 
  
 (b) Funds on deposit in the Principal Account shall be invested pursuant to the written direction of the Servicer by the
Trustee in Permitted Investments. The Trustee shall maintain for the benefit of the Investor Holders possession of the negotiable instruments or securities, if any, evidencing such Permitted Investments. No Permitted Investment shall be disposed of
prior to its maturity. 
  
 SECTION 4.11 Interest Funding
Account. (a) The Trustee shall establish and maintain in the name of the Trust, on behalf of the Trust, for the benefit of the Investor Holders, a segregated trust account (the “Interest Funding Account”) bearing a designation
clearly indicating that the funds deposited therein are held for the benefit of the Investor Holders, or establish and maintain the Interest Funding Account with a Qualified Institution. The Trustee shall possess all right, title and interest in all
funds on deposit from time to time in the Interest Funding Account and in all proceeds thereof. The Interest Funding Account shall be under the 
  

 -15- 

 sole dominion and control of the Trustee for the benefit of the Investor Holders. If at any time a Qualified Institution
holding the Interest Funding Account ceases to be a Qualified Institution, the Transferor shall notify the Trustee, and the Trustee upon being notified (or the Servicer on its behalf) shall, within 10 Business Days, establish a new Interest Funding
Account meeting the conditions specified above, and shall transfer any cash or any investments to such Interest Funding Account. The Trustee, at the direction of the Servicer, shall make withdrawals from the Interest Funding Account and the relevant
subaccount from time to time in the amounts and for the purposes set forth in this Series Supplement. 
  
 (b) Funds on deposit in the Interest Funding Account shall be invested by the Trustee in Permitted Investments only upon and in accordance with the
written directions of the Servicer; provided, however, that in the absence of such written directions of the Servicer, the Trustee shall invest such funds in Permitted Investments set forth in clause (v) of the definition thereof.
Funds on deposit in the Interest Funding Account on any Transfer Date, after giving effect to any withdrawals from the Interest Funding Account on such Transfer Date, shall be invested in such Permitted Investments that will mature so that such
funds will be available for withdrawal on or prior to the following Transfer Date. The Trustee shall maintain for the benefit of the Investor Holders possession of the negotiable instruments or securities, if any, evidencing such Permitted
Investments. No Permitted Investment shall be disposed of prior to its maturity. 
  
 (c) On each Distribution Date, the Servicer shall direct the Trustee in writing to withdraw from the Interest Funding Account and pay to the Transferor all interest and other investment income (net of losses and
investment expenses) on funds on deposit in the Interest Funding Account. 
  
 (d) Reinvested interest and other investment income on funds deposited in the Interest Funding Account shall not be considered to be principal amounts on deposit therein for purposes of this Series Supplement.

  
 SECTION 4.12 Transferor’s or Servicer’s Failure
to Make a Deposit or Payment. If the Servicer or the Transferor fails to make, or give instructions to make, any payment or deposit (other than as required by Section 2.4(d) and (e) and 12.2(a) or Section 10.2 and 12.1) required to be made or
given by the Servicer or the Transferor, respectively, at the time specified in the Agreement or this Series Supplement (including applicable grace periods), the Trustee shall make such payment or deposit from the applicable Investor Account without
instruction from the Servicer or the Transferor. The Trustee shall be required to make any such payment, deposit, or withdrawal hereunder only to the extent that the Trustee has sufficient information to allow it to determine the amounts thereof;
provided, however, that absent appropriate instructions from the Servicer or the Transferor, as applicable, the Trustee shall in all cases only be deemed to have sufficient information to determine the amount thereof. The Trustee
shall, promptly following failure by either the Servicer or the Transferor to provide any such instructions within the time specified pursuant to the Agreement or this Series Supplement (including applicable grace periods), use its reasonable
efforts to contact the Servicer or the Transferor, as applicable, to request receipt of any such instructions. The Servicer shall, upon request of the Trustee, promptly provide the Trustee with all information necessary to allow the Trustee to make
such payment, deposit or withdrawal. Such funds or the proceeds of such withdrawal shall be applied by the Trustee in the manner in which such payment or deposit should have been made by the Transferor or the Servicer, as the case may be.

  

 -16- 

 SECTION 6. Article V of the Agreement. Article V of the Agreement shall read in its entirety as
follows and shall be applicable only to the Series 2004-MC Certificateholders: 
  
 ARTICLE V 
 DISTRIBUTIONS AND REPORTS TO INVESTOR HOLDERS 
  
 SECTION 5.1 Distributions. (a) On each Payment Date, the Trustee
shall distribute (in accordance with the certificate delivered on or before the related Transfer Date by the Servicer to the Trustee pursuant to Section 3.4(b)) to the Certificate Representative the aggregate amount payable to the Series 2004-MC
Certificateholders pursuant to Section 4.08 to the account of the Certificate Representative, as specified in writing by the Certificate Representative, in immediately available funds. 
  
 SECTION 5.2 Monthly Series Certificateholders’ Statement. (a) On or before each Distribution Date, the Trustee
shall forward to each Series 2004-MC Holder and each Rating Agency or, with the prior consent of any such party, make available electronically to such consenting party a statement substantially in the form of Exhibit C prepared by the Servicer and
delivered to the Trustee; provided, however, that the Trustee shall have no obligation to provide such statement until it has received the requisite statement from the Servicer. 
  
 (b) The Trustee may make available to each Series 2004-MC Holder and each
Rating Agency, via the Trustee’s Internet Website, the statements referred to in Section 5.2(a) hereof on or before the date such statement is required thereunder and, with the consent or at the direction of the Transferor, such other
information regarding the Series 2004-MC Certificates and/or the Receivables as the Trustee may have in its possession; provided, however, that without the prior consent of such party, the availability of such website shall not release
the Trustee from its obligation pursuant to Section 5.2(a) hereof to provide such information directly to such party. The Trustee will make no representation or warranties as to the accuracy or completeness of such documents and will assume no
responsibility therefor. 
  
 The Trustee’s Internet Website
shall be initially located at “www.ctslink.com” or at such other address as shall be specified by the Trustee from time to time in writing to each Series 2004-MC Holder and each Rating Agency. In connection with providing access to the
Trustee’s Internet Website, the Trustee may require registration and the acceptance of a disclaimer. 
  
 SECTION 7. Series 2004-MC Pay Out Events. If any one of the following events shall occur with respect to the Investor Certificates: 
  
 (a) failure on the part of the Transferor (i) to make any payment or deposit
required by the terms of (A) the Agreement or (B) this Series Supplement, on or before the date occurring five days after the date such payment or deposit is required to be made herein or (ii) duly to observe or perform in any material respect any
covenants or agreements of the 
  

 -17- 

 Transferor set forth in the Agreement or this Series Supplement, which failure has a material adverse effect on the
Series 2004-MC Holders and which continues unremedied for a period of 60 days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Transferor by the Trustee, or to the Transferor and
the Trustee by the Holders of Investor Certificates evidencing Undivided Interests aggregating not less than 50% of the Investor Interest, and continues to affect materially and adversely the interests of the Series 2004-MC Holders for such period;

  
 (b) any representation or warranty made by the Transferor in
the Agreement or this Series Supplement, or any information contained in a Receivables Schedule required to be delivered by the Transferor pursuant to Section 2.1, (i) shall prove to have been incorrect in any material respect when made or when
delivered, which continues to be incorrect in any material respect for a period of 60 days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Transferor by the Trustee, or to the
Transferor and the Trustee by the Holders of Investor Certificates evidencing Undivided Interests aggregating not less than 50% of the Investor Interest, and (ii) as a result of which the interests of the Series 2004-MC Holders are materially and
adversely affected and continue to be materially and adversely affected for such period, provided that a Series 2004-MC Pay Out Event pursuant to this Section 7(b) shall not be deemed to have occurred hereunder if the Transferor has accepted
reassignment of the related Receivable, or all of such Receivables, if applicable, during such period in accordance with the provisions of the Agreement; 
  
 (c) during any 10 consecutive days (i) the average Transferor Interest is below the Minimum Transferor Interest for the same period or (ii) the sum
of (x) Principal Receivables and (y) the principal amount on deposit in the Excess Funding Account is less than the Minimum Aggregate Principal Receivables for the same period; 
  
 (d) an Originator shall fail to convey Additional Receivables to Mellon Bank as required by the First Tier Receivables
Purchase Agreement, Mellon Bank shall fail to convey Additional Receivables to the Transferor as required by the Second Tier Receivables Purchase Agreement or the Transferor shall fail to convey Additional Receivables to the Trust as required by
Section 2.1(b); 
  
 (e) any Servicer Default shall occur that
would have a material adverse effect on the Series 2004-MC Holders; 
  
 (f) the Monthly Payment Rate averaged for three consecutive Monthly Periods is less than 12%; or 
  
 (g) for a period of three consecutive Determination Dates, (i) there exists an Excess Obligor Concentration Amount, (ii) there exists an Excess Insurer
Concentration Amount, (iii) there exists an Excess Aggregate Tier 4 Insurer Concentration Amount, (iv) there exists an Excess Aggregate Tier 3 Insurer Concentration Amount, (v) the Aggregate Top Tier 3 Insurer Percentage is greater than the Maximum
Aggregate Top Tier 3 Insurer Percentage or (vi) the Aggregate Top Tier 2 Insurer Percentage is greater than the Maximum Top Tier 2 Insurer Percentage. 
  

 -18- 

 then, in the case of any event described in Section 7(a), (b) or (e) hereof, after the applicable grace period, if any,
set forth in such Sections, either the Trustee or Holders of Series 2004-MC Certificates evidencing Undivided Interests aggregating not less than 50% of the Investor Interest of this Series 2004-MC by notice then given in writing to the Transferor
and the Servicer (and to the Trustee if given by the Holders) may declare that a pay out event (a “Series 2004-MC Pay Out Event”) has occurred as of the date of such notice, and in the case of any event described in Section 7(c),
(d),(f) or (g) hereof, a Series 2004-MC Pay Out Event shall occur without any notice or other action on the part of the Trustee or the Investor Holders immediately upon the occurrence of such event. The Series 2004-MC Pay Out Events described in
Section 7(g) may be amended by the Transferor, the Trustee and the Servicer at any time, but without the consent of the Holders if the Rating Agency Condition has been satisfied with respect to such amendment. 
  
 SECTION 8. Series 2004-MC Termination. The right of the Investor
Holders to receive payments from the Trust will terminate on the first Business Day following the Series 2004-MC Termination Date. 
  
 SECTION 9. Application of Proceeds of Issuance of Series 2004-MC. On the Closing Date, the Trustee shall deposit the proceeds of the issuance of
the Series 2004-MC Certificate into the Collection Account for application by the Trustee to the purchase of Additional Receivables pursuant to the Second Tier Receivables Purchase Agreement. 
  
 SECTION 10. Counterparts. This Series Supplement may be executed in
any number of counterparts, each of which so executed shall be deemed to be an original, but all of such counterparts shall together constitute but one and the same instrument. 
  
 SECTION 11. Governing Law. THIS SERIES SUPPLEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REFERENCE TO ITS CONFLICT 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 12. Additional Notices. The Transferor shall notify the Rating
Agencies promptly after becoming aware of any Lien on any Receivable other than the conveyances under the Agreement. The Transferor shall notify the [Indenture Trustee] of any merger, consolidation, assumption or transfer referred to in Section 7.2.

  
 SECTION 13. Additional Representations and Warranties of
Servicer. AFCO Acceptance and AFCO Credit, as initial Servicer, hereby makes, and any Successor Servicer by its appointment under the Agreement shall make the following representations and warranties: 
  
 (a) All Consents. All authorizations, consents, orders or approvals of or
registrations or declarations with any Governmental Authority required to be obtained, effected or given by the Servicer in connection with the execution and delivery of this Series Supplement by the Servicer and the performance of the transactions
contemplated by this Series Supplement by the Servicer, have been duly obtained, effected or given and are in full force and effect. 
  

 -19- 

 (b) Rescission or Cancellation. The Servicer shall not permit any rescission or cancellation of any
Receivable except as ordered by a court of competent jurisdiction or other Governmental Authority or in accordance with the normal operating procedures of the Servicer. 
  
 SECTION 14. No Petition. The Transferor (with respect to the Trust), the Servicer, the Back-up Servicer and the
Trustee by entering into this Series Supplement, and each Series 2004-MC Holder by accepting a Series 2004-MC Certificate, hereby covenant and agree that they will not, for one year and one day following the Trust Termination Date, institute against
the Trust or the Transferor, or join in any institution against the Trust or the Transferor of, any bankruptcy proceedings under any United States Federal or state bankruptcy or similar law in connection with any obligations relating to the Investor
Holders, the Agreement or this Series Supplement. 
  
 SECTION
15. Amendments. Subject to Sections 7 and 17, this Series Supplement may be amended pursuant to Section 13.1 of the Agreement. This Series Supplement also may be amended by the Transferor without the consent of the Servicer, the Back-up
Servicer, the Trustee or any Investor Holder if the Transferor provides the Trustee with: (i) an Opinion of Counsel to the effect that such amendment or modification (I) would (A) reduce the risk that the Trust would be treated as taxable as a
publicly traded partnership pursuant to Internal Revenue Code section 7704 or (B) permit the Trust or a relevant portion thereof to be treated as a “financial asset securitization investment trust” and (C) in either case, (1) would not
cause the Trust to be classified, for Federal income tax purposes, as an association (or publicly traded partnership) taxable as a corporation and (2) would not cause or constitute an event in which gain or loss would be recognized by any Investor
Holder, and (II) complies with all requirements of the Agreement; and (ii) a certificate that such amendment or modification would not materially and adversely affect any Investor Holder, provided that no such amendment shall be deemed
effective without the Trustee’s consent if the Trustee’s rights, duties and obligations hereunder are thereby modified. Promptly after the execution of any such amendment (other than an amendment pursuant to Section 13.1(a) of the
Agreement), the Trustee shall furnish notification of the substance of such amendment to each Rating Agency. Notwithstanding anything to the contrary contained in this Section 15, the provisions of this Series Supplement that affect the rights or
obligations of the Back-up Servicer may only be amended with the further written consent of the Back-up Servicer. 
  
 SECTION 16. No Liability of Owner Trustee. It is expressly understood and agreed by the parties hereto that (i) this Series Supplement has been
executed and delivered on behalf of the Transferor by Chase Manhattan Bank USA, National Association, not in its individual capacity, but solely as owner trustee of the Transferor, in the exercise of the powers and authority vested in it pursuant to
the Trust Agreement, (ii) each of the representations, undertakings and agreements made herein by the Transferor is not made or intended as a personal representation, undertaking or agreement by Chase Manhattan Bank USA, National Association, but is
made and intended for the purpose of binding only the Transferor and (iii) under no circumstances shall Chase Manhattan Bank USA, National Association be liable for the payment of any indebtedness or expenses of the Transferor or for the breach or
failure of any obligation, representation, warranty or covenant made or undertaken by the Transferor under this Series Supplement, the Agreement, any other Supplement or the Second Tier Receivables Purchase Agreement. 
  

 -20- 

 SECTION 17. Treatment of Noteholders. For purposes of any provision of the Agreement or this
Series Supplement requiring or permitting actions with the consent of, or at the direction of, Series 2004-MC Certificateholders holding a specified percentage of the aggregate unpaid principal amount of 2004-MC Certificates (a) each Noteholder
shall be deemed to be a Series 2004-MC Certificateholder; (b) each Noteholder shall be deemed to be the Holder of an aggregate unpaid principal amount of the Series 2004-MC Certificate equal to the Adjusted Outstanding Dollar Principal Amount of
such Noteholder’s Notes; (c) each series of Notes under the Indenture shall be deemed to be a separate Series of Investor Certificates and the Holder of a Note of such series will be deemed to be the Holder of an aggregate unpaid principal
amount of such Series of Investor Certificates equal to the Adjusted Outstanding Dollar Principal Amount of such Noteholder’s Notes of such series; (d) each class of Notes under the Indenture shall be deemed to be a separate Class of Investor
Certificates and the Holder of a Note of such class shall be deemed to be the Holder of an aggregate unpaid principal amount of such Class of Investor Certificates equal to the Adjusted Outstanding Dollar Principal Amount of such Noteholder’s
Notes of such Class and (e) any Notes owned by the Mellon Bank PFL Master Note Trust, the Transferor, the Servicer, any holder of the Transferor Interest or any Affiliate thereof shall be deemed not to be outstanding, except that, in determining
whether the Trustee shall be protected in relying upon any such consent or direction, only Notes that the Trustee knows to be so owned shall be so disregarded. Notes so owned that have been pledged in good faith shall not be disregarded and may be
regarded as outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Notes and that the pledgee is not the Transferor, the Servicer, any holder of the 2004-MC Interest or any
Affiliate thereof. 
  
 SECTION 18. Transfer of the Series
2004-MC Certificate. After the Closing Date, the Series 2004-MC Certificate may not be sold, participated, transferred, assigned, exchanged or otherwise pledged or conveyed in whole or in part except upon the prior delivery to the Master Trust
Trustee and the Owner Trustee of a Master Trust Tax Opinion and an Issuer Tax Opinion (as defined in the Indenture), respectively, with respect thereto. 
  
 SECTION 19. Certain Commercial Law Representations and Warranties. The Transferor hereby makes the following representations and warranties. Such
representations and warranties shall survive until the termination of this Agreement. Such representations and warranties speak of the date that the Receivables are transferred to the Trust, but shall not be waived by any of the parties to this
Agreement unless each Rating Agency shall have notified the Transferor, the Servicer and the Owner Trustee in writing that such waiver will not result in a reduction or withdrawal of the rating of any outstanding Series or Class to which it is a
Rating Agency. 
  
 (a) The Agreement creates a valid and
continuing security interest (as defined in the applicable UCC) in favor of the Trust in the Receivables described in Section 2.1 of the Agreement, security interest is prior to all other liens, and is enforceable as such against creditors of and
purchasers from the Transferor. 
  

 -21- 

 (b) The Receivables constitute “accounts” within the meaning of the applicable UCC. 

 
 (c) At the time of its grant of any security interest in the Receivables
pursuant to the Agreement, the Transferor owned and had good and marketable title to the Receivables free and clear of any lien, claim or encumbrance of any Person. 
  
 (d) The Transferor has caused or will have caused, within ten (10) days of the initial execution of the Agreement and each
transfer of Additional Receivables, the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under applicable law in order to perfect the security interest in the Receivables granted to the
Trust pursuant to the Agreement. 
  
 (e) Other than the security
interest granted to the Trust pursuant to the Agreement, the Transferor has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed the Receivables. The Transferor has not authorized the filing of and is not aware of any
financing statements against the Transferor that include a description of the Receivables other than any financing statement relating to the security interest granted to the Trust and the Indenture Trustee pursuant to the Agreement or the Indenture,
as applicable, or that has been terminated. The Transferor is not aware of any judgment or tax lien filings against the Transferor. 
  

 -22- 

 IN WITNESS WHEREOF, the Transferor, the Servicer, the Back-up Servicer and the Trustee have caused this
Series 2004-MC Supplement to be duly executed by their respective officers as of the day and year first above written. 
  

			
	MELLON PREMIUM FINANCE LOAN OWNER TRUST, Transferor
		
	 By:
	 	MELLON BANK, N.A., not in its individual capacity, but solely as administrator
		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

	
	 AFCO CREDIT CORPORATION, Servicer

		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

	
	 AFCO ACCEPTANCE CORPORATION, Servicer

		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

	
	 PREMIUM FINANCING SPECIALISTS, INC.
Back-up Servicer

		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

	
	 PREMIUM FINANCING SPECIALISTS OF
CALIFORNIA, INC., Back-up Servicer

		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

  

 -23- 

			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, Trustee
		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

  

 -24-

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