Document:

<PAGE>   1
                                                                     EXHIBIT 4.1

                          SALE AND SERVICING AGREEMENT

                                      among

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

                     NISSAN AUTO RECEIVABLES CORPORATION II,
                                   as Seller,

                                       and

                      NISSAN MOTOR ACCEPTANCE CORPORATION,
                                   as Servicer

                          Dated as of February 1, 2001

<PAGE>   2

                               TABLE OF CONTENTS

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                                    ARTICLE I

                                   DEFINITIONS

SECTION 1.01      Definitions..................................................(Nissan 2001-1
SECTION 1.02      Usage of Terms..............................................(Nissan 2001-19

                                   ARTICLE II

                            CONVEYANCE OF RECEIVABLES

SECTION 2.01      Conveyance of Receivables...................................(Nissan 2001-19
SECTION 2.02      Custody of Receivables Files................................(Nissan 2001-21
SECTION 2.03      Acceptance by Issuer........................................(Nissan 2001-21

                                   ARTICLE III

                                 THE RECEIVABLES

SECTION 3.01      Representations and Warranties of the Seller with Respect to
                  the Receivables.............................................(Nissan 2001-22
SECTION 3.02      Repurchase upon Breach......................................(Nissan 2001-25
SECTION 3.03      Duties of Servicer as Custodian.............................(Nissan 2001-26
SECTION 3.04      Instructions; Authority To Act..............................(Nissan 2001-26
SECTION 3.05      Custodian's Indemnification.................................(Nissan 2001-27
SECTION 3.06      Effective Period and Termination............................(Nissan 2001-27

                                   ARTICLE IV

                   ADMINISTRATION AND SERVICING OF RECEIVABLES

SECTION 4.01      Duties of Servicer..........................................(Nissan 2001-27
SECTION 4.02      Collection of Receivable Payments...........................(Nissan 2001-29
SECTION 4.03      Realization upon Receivables................................(Nissan 2001-29
SECTION 4.04      Maintenance of Security Interests in Financed Vehicles......(Nissan 2001-29
SECTION 4.05      Covenants of Servicer.......................................(Nissan 2001-30
SECTION 4.06      Purchase of Receivables upon Breach.........................(Nissan 2001-30
SECTION 4.07      Servicing Fee and Expenses..................................(Nissan 2001-30
SECTION 4.08      Servicer's Certificate......................................(Nissan 2001-31
SECTION 4.09      Annual Statement as to Compliance; Notice of Default........(Nissan 2001-31
SECTION 4.10      Annual Independent Certified Public Accountants' Report.....(Nissan 2001-32
SECTION 4.11      Access to Certain Documentation and Information Regarding
                  Receivables.................................................(Nissan 2001-32
SECTION 4.12      Appointment of Subservicer..................................(Nissan 2001-32
SECTION 4.13      Amendments to Schedule of Receivables.......................(Nissan 2001-32
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                               TABLE OF CONTENTS
                                  (CONTINUED)
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SECTION 4.14      Acknowledgement by Servicer of its Obligations under the
                  Indenture...................................................(Nissan 2001-33

                                    ARTICLE V

          DISTRIBUTIONS; ACCOUNTS; STATEMENTS TO THE CERTIFICATEHOLDERS
                               AND THE NOTEHOLDERS

SECTION 5.01      Establishment of Accounts...................................(Nissan 2001-33
SECTION 5.02      Collections.................................................(Nissan 2001-35
SECTION 5.03      Application of Collections..................................(Nissan 2001-36
SECTION 5.04      Advances....................................................(Nissan 2001-36
SECTION 5.05      Additional Deposits.........................................(Nissan 2001-37
SECTION 5.06      Payments and Distributions..................................(Nissan 2001-38
SECTION 5.07      Reserve Account.............................................(Nissan 2001-41
SECTION 5.08      Yield Supplement Account....................................(Nissan 2001-43
SECTION 5.09      Statements to Certificateholders and Noteholders............(Nissan 2001-45
SECTION 5.10      Net Deposits................................................(Nissan 2001-46

                                   ARTICLE VI

                                   THE SELLER

SECTION 6.01      Representations of Seller...................................(Nissan 2001-46
SECTION 6.02      Additional Covenants of the Seller..........................(Nissan 2001-48
SECTION 6.03      Liability of Seller; Indemnities............................(Nissan 2001-50
SECTION 6.04      Merger or Consolidation of, or Assumption of the
                  Obligations of, Seller......................................(Nissan 2001-51
SECTION 6.05      Limitation on Liability of Seller and Others................(Nissan 2001-51
SECTION 6.06      Seller May Own Certificates or Notes........................(Nissan 2001-52

                                   ARTICLE VII

                                  THE SERVICER

SECTION 7.01      Representations of Servicer.................................(Nissan 2001-52
SECTION 7.02      Indemnities of Servicer.....................................(Nissan 2001-53
SECTION 7.03      Merger or Consolidation of, or Assumption of the Obligations
                  of, Servicer................................................(Nissan 2001-55
SECTION 7.04      Limitation on Liability of Servicer and Others..............(Nissan 2001-55
SECTION 7.05      NMAC Not To Resign as Servicer..............................(Nissan 2001-56

                                  ARTICLE VIII

                                     DEFAULT
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                               TABLE OF CONTENTS
                                  (CONTINUED)
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SECTION 8.01      Servicer Default............................................(Nissan 2001-56
SECTION 8.02      Appointment of Successor....................................(Nissan 2001-58
SECTION 8.03      Repayment of Advances.......................................(Nissan 2001-59
SECTION 8.04      Notification ...............................................(Nissan 2001-59
SECTION 8.05      Waiver of Past Defaults.....................................(Nissan 2001-59

                                   ARTICLE IX

                       TERMINATION; RELEASE OF RECEIVABLES

SECTION 9.01      Optional Purchase of All Receivables........................(Nissan 2001-59
SECTION 9.02      Release of Receivables......................................(Nissan 2001-60
SECTION 9.03      Termination.................................................(Nissan 2001-61

                                    ARTICLE X

                                  MISCELLANEOUS

SECTION 10.01     Amendment...................................................(Nissan 2001-61
SECTION 10.02     Protection of Title to Trust................................(Nissan 2001-63
SECTION 10.03     Notices.....................................................(Nissan 2001-65
SECTION 10.04     Assignment by the Seller or the Servicer....................(Nissan 2001-65
SECTION 10.05     Limitations on Rights of Others.............................(Nissan 2001-65
SECTION 10.06     Severability................................................(Nissan 2001-65
SECTION 10.07     Separate Counterparts.......................................(Nissan 2001-65
SECTION 10.08     Headings....................................................(Nissan 2001-66
SECTION 10.09     Governing Law...............................................(Nissan 2001-66
SECTION 10.10     Assignment by Issuer........................................(Nissan 2001-66
SECTION 10.11     Nonpetition Covenants.......................................(Nissan 2001-66
SECTION 10.12     Limitation of Liability of Owner Trustee and Indenture
                  Trustee.....................................................(Nissan 2001-66
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SCHEDULE A             Schedule of Receivables
SCHEDULE B             Location of the Receivable Files
SCHEDULE C             Schedule of Lease Contracts
EXHIBIT A              Form of Yield Supplement Agreement

                                      iii
<PAGE>   5

        SALE AND SERVICING AGREEMENT, dated as of February 1, 2001, among NISSAN
AUTO RECEIVABLES 2001-A OWNER TRUST, a Delaware business trust (the "Issuer"),
NISSAN AUTO RECEIVABLES CORPORATION II, a Delaware corporation, and NISSAN MOTOR
ACCEPTANCE CORPORATION, a California corporation. Capitalized terms used herein
without definition shall have the respective meanings assigned to such terms in
Article I.

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

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

        WHEREAS, the Servicer is willing to service such receivables.

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

                                    ARTICLE I

                                   Definitions

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

        "Accounts" means the Collection Account, the Yield Supplement Account
and the Reserve Account.

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

        "Administrative Purchase Payment" for any Administrative Receivable as
of the last day of any Collection Period, means the sum of the Principal Balance
thereof as of the beginning of such Collection Period plus interest accrued
thereon through the due date for the Obligor's payment in such Collection Period
at the related APR, after giving effect to the receipt of monies collected (from
whatever source other than the Advances) on such Administrative Receivable, if
any, during such Collection Period.

        "Administrative Receivable" means a Receivable purchased as of the close
of business on the last day of a Collection Period by the Servicer pursuant to
Section 4.06 or Section 9.01.

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

        "Advance" means the amount, as of the last day of a Collection Period,
that the Servicer is required to advance on the respective Receivable pursuant
to Section 5.04.

<PAGE>   6
        "Affiliate" means, with respect to any specified Person, any other
Person controlling or controlled by or under common control with such specified
Person. For the purposes of this definition, "control," when used with respect
to any specified Person, means the power to direct the management and policies
of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the term "controlling" and
"controlled" have meanings correlative to the foregoing.

        "Aggregate Noteholders' Interest Distributable Amount" means, with
respect to any Distribution Date, the sum of the Noteholders' Interest
Distributable Amount for all Classes of Notes with respect to such Distribution
Date.

        "Agreement" means this Sale and Servicing Agreement among Nissan Auto
Receivables 2001-A Owner Trust, as Issuer, NARC II, as Seller, and NMAC, as
Servicer.

        "AICPA" shall have the meaning assigned to such term in Section 4.10.

        "Allocable Principal" means, for any Distribution Date, an amount equal
to the excess, if any, of (i) the sum of the Outstanding Amount of the Notes and
the Certificate Balance as of the close of business on the immediately preceding
Distribution Date over (ii) the Pool Balance as of the end of the related
Collection Period.

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

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

        "Assignment" shall have the meaning assigned to such term in the
Purchase Agreement.

        "Annual USAP Report" shall have the meaning specified in Section 4.10.

        "Available Amounts" means, with respect to any Distribution Date, the
sum of Available Interest and Available Principal for such Distribution Date.

        "Available Interest" means, for any Distribution Date, the sum of the
following amounts received during the related Collection Period: (i) that
portion of all collections on Receivables allocable to interest, (ii) without
duplication of amounts described in clause (i), Net Liquidation Proceeds to the
extent allocable to interest due on a Liquidated Receivable in accordance with
the Servicer's customary servicing procedures, (iii) all Advances made by the
Servicer pursuant to Section 5.04, (iv) without duplication of any amounts
described above in clauses (i) and (ii), the Administrative Purchase Payment of
each Receivable that became an Administrative Receivable during the related
Collection Period to the extent attributable to interest thereon, (v) without
duplication of any amounts described above in clauses (i) and (ii), the Warranty
Purchase Payment of each Receivable that became a Warranty Receivable during the
related Collection Period to the extent attributable to interest thereon, and
(vi) the Yield Supplement

                                       2
<PAGE>   7
Deposit plus the sum of (x) reinvestment income on the Yield Supplement Account
and (y) the amount, if any, deposited into the Collection Account pursuant to
the second or third sentence of Section 5.08(b); provided, however, that in
calculating Available Interest, amounts to be paid to the Servicer as
reimbursement for Advances pursuant to Sections 5.06(c)(i), 5.06(c)(ii),
5.06(d)(i) and 5.06(d)(ii) on such Distribution Date shall be excluded.

        "Available Principal" means, for any Distribution Date, the sum of the
following amounts received during the related Collection Period: (i) that
portion of all collections on Receivables attributable to principal, (ii)
without duplication of amounts described in clause (i), Net Liquidation Proceeds
attributable to principal due on a Liquidated Receivable in accordance with the
Servicer's customary servicing procedures, (iii) without duplication of any
amounts described above in clauses (i) and (ii), the Administrative Purchase
Payment of each Receivable that became an Administrative Receivable during the
related Collection Period to the extent attributable to principal, and (iv)
without duplication of any amounts described above in clauses (i) and (ii), the
Warranty Purchase Payment of each Receivable that became a Warranty Receivable
during the related Collection Period to the extent attributable to principal.

        "Base Servicing Fee" means the fee payable to the Servicer on each
Distribution Date, calculated pursuant to Section 4.07, for services rendered
during the related Collection Period, which shall be equal to one-twelfth of the
Servicing Rate multiplied by the Pool Balance as of the close of business on the
last day of the immediately preceding Collection Period or, with respect to the
first Distribution Date, the Original Pool Balance.

        "Basic Documents" means the Purchase Agreement, the Trust Agreement, the
Certificate of Trust, this Agreement, the Indenture, the Administration
Agreement, the Securities Account Control Agreement, the Yield Supplement
Agreement, the Note Depository Agreement and the other documents and
certificates delivered in connection herewith and therewith.

        "Business Day" means any day other than a Saturday, a Sunday or a day on
which banking institutions in New York, New York, Los Angeles, California,
Wilmington, Delaware or Minneapolis, Minnesota are authorized or obligated by
law, regulation, executive order or governmental decree to remain closed.

        "Certificate Balance" means, as of any Distribution Date, the Original
Certificate Balance, reduced by all amounts distributed to the
Certificateholders pursuant to Section 5.06(c) and/or (d) hereof (but in no
event less than zero). For the purposes of determining whether the vote of the
requisite percentage of Certificateholders necessary to effect any consent,
waiver, request or demand shall have been obtained, the Certificate Balance
shall be deemed to be reduced by the amount equal to the balance (without giving
effect to this provision) evidenced by any Certificate registered in the name of
the Seller, the Servicer or any Person actually known to a Trust Officer of the
Owner Trustee or the Indenture Trustee, as the case may be, to be the Seller or
the Servicer or any of their Affiliates.

        "Certificate Factor" means, with respect to any Distribution Date, a
seven-digit decimal figure obtained by dividing the Certificate Balance as of
the close of business on the last day of the related Collection Period by the
Original Certificate Balance.

                                       3
<PAGE>   8

        "Certificate of Trust" shall have the meaning assigned to such term in
the Trust Agreement.

        "Certificate Pool Factor" means, with respect to any Distribution Date,
a seven-digit decimal figure obtained by dividing the Certificate Balance as of
the close of business on the last day of the related Collection Period by the
Original Pool Balance.

        "Certificate Register" means the register maintained by the Certificate
Registrar pursuant to the Trust Agreement recording the names of the
Certificateholders.

        "Certificateholder" shall have the meaning assigned to such term in the
Trust Agreement.

        "Certificateholders' Distributable Amount" means, with respect to any
Distribution Date, the Certificateholders' Principal Distributable Amount, if
any, for such Distribution Date.

        "Certificateholders' Monthly Principal Distributable Amount" means, with
respect to any Distribution Date, the Certificateholders' Percentage of the
Allocable Principal for such Distribution Date.

        "Certificateholders' Percentage" means the following: (i) for each
Distribution Date until the Distribution Date on which the principal amount of
all of the Notes has been paid in full, 0%; (ii) for the Distribution Date on
which the principal amount of all the Notes has been paid in full, the
percentage of Allocable Principal remaining after the Notes have been paid in
full; and (iii) for each Distribution Date after the Distribution Date on which
the principal amount of all of the Notes is reduced to zero, 100%.

        "Certificateholders' Principal Carryover Shortfall" means, with respect
to any Distribution Date, the excess, if any, of the Certificateholders' Monthly
Principal Distributable Amount over the amount in respect of principal that is
actually distributed to the Certificateholders on such current Distribution
Date. Certificateholders' Principal Carryover Shortfall is not used to determine
the amount of principal due on any Distribution Date, but is used solely for
reporting purposes.

        "Certificateholders' Principal Distributable Amount" means, with respect
to any Distribution Date, the sum of (i) the Certificateholders' Monthly
Principal Distributable Amount for such Distribution Date and (ii) on the Final
Scheduled Distribution Date for the Certificates, if any, or upon the
termination of the Trust, the amount necessary to reduce the outstanding
principal amount of the Certificates to zero; provided, however, that the
Certificateholders' Principal Distributable Amount shall not exceed the
Certificate Balance.

        "Certificates" shall have the meaning assigned to such term in the Trust
Agreement.

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

        "Class A-1 Interest Rate" means 5.5225% per annum.

        "Class A-1 Note" means any of the 5.5225% Asset Backed Notes, Class A-1,
issued under the Indenture.

                                       4
<PAGE>   9

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

        "Class A-2 Interest Rate" means 5.3400% per annum.

        "Class A-2 Note" means any of the 5.3400% Asset Backed Notes, Class A-2,
issued under the Indenture.

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

        "Class A-3 Interest Rate" means 5.5500% per annum.

        "Class A-3 Note" means any of the 5.5500% Asset Backed Notes, Class A-3,
issued under the Indenture.

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

        "Class A-4 Interest Rate" means 5.7500% per annum.

        "Class A-4 Note" means any of the 5.7500% Asset Backed Notes, Class A-4,
issued under the Indenture.

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

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

        "Closing Date" means February 1, 2001.

        "Collection Account" means the account designated as such, established
and maintained pursuant to Section 5.01.

        "Collection Period" means, with respect to any Distribution Date, the
preceding calendar month. Any amount stated "as of the close of business of the
last day of a Collection Period" shall give effect to the following calculations
as determined as of the end of the day on such last day: (i) all applications of
collections, (ii) all Advances and reductions of Outstanding Advances and (iii)
all distributions.

        "Corporate Trust Office" shall have the meaning assigned to such term in
the Indenture.

        "Cutoff Date" means December 31, 2000.

        "Damages" shall have the meaning assigned to such term in Section 7.02.

        "Dealer" means the dealer who sold a Financed Vehicle and who originated
and assigned the related Receivable to NMAC under an existing agreement between
such dealer and NMAC.

                                       5
<PAGE>   10

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

        "Default" shall have the meaning assigned to such term in the Indenture.

        "Defaulted Receivable" means a Receivable (other than an Administrative
Receivable or a Warranty Receivable), which, by its terms, is delinquent 120 or
more days or, with respect to Receivables that are delinquent less than 120
days, the Servicer has (i) determined, in accordance with its customary
servicing procedures, that eventual payment in full is unlikely or (ii)
repossessed the Financed Vehicle.

        "Definitive Notes" shall have the meaning ascribed thereto in the
Indenture.

        "Determination Date" means the tenth calendar day of each calendar
month, or if such tenth day is not a Business Day, the next succeeding Business
Day.

        "Distribution Date" means, for each Collection Period, the 15th calendar
day of the following calendar month, or if the 15th day is not a Business Day,
the next succeeding Business Day, commencing February 15, 2001.

        "DTC" means The Depository Trust Company.

        "Eligible Deposit Account" means an account maintained (i) with the
Indenture Trustee or the Owner Trustee so long as the Indenture Trustee's or the
Owner Trustee's short-term unsecured debt obligations have a rating of "P-1" by
Moody's and a rating of "A-1+" by Standard & Poor's, and for any account in
which deposits in excess of 30 days are to be made, so long as the Indenture
Trustee's or the Owner Trustee's long-term unsecured debt obligations have a
rating of at least "AA-" by Standard & Poor's (such short-term and long-term (if
applicable) ratings being the "Required Deposit Rating"), or (ii) in a
segregated trust account in the trust department of the Indenture Trustee or the
Owner Trustee, as the case may be. Notwithstanding anything to the contrary, as
of the Closing Date, the Indenture Trustee shall be deemed to have met the
requirements in clause (i).

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

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

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

                                       6
<PAGE>   11

                (iii)   commercial paper having, at the time of the investment
        or contractual commitment to invest therein, a rating from each of the
        Rating Agencies in the highest investment category granted thereby;

                (iv)    investments in money market funds having a rating from
        each of the Rating Agencies in the highest investment category granted
        thereby (including funds for which the Owner Trustee, the Indenture
        Trustee or any of their respective Affiliates is investment manager or
        advisor);

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

                (vi)    repurchase obligations with respect to any security
        that is a direct obligation of, or fully guaranteed by, the United
        States of America or any agency or instrumentality thereof the
        obligations of which are backed by the full faith and credit of the
        United States of America, in either case entered into with a depository
        institution or trust company (acting as principal) described in clause
        (ii);

                (vii)   repurchase obligations with respect to any security or
        whole loan, entered into with (a) a depository institution or trust
        company (acting as principal) described in clause (ii) above (except
        that the rating referred to in the proviso in such clause (ii) shall be
        "A-1" or higher in the case of Standard & Poor's) (such depository
        institution or trust company being referred to in this definition as a
        "financial institution"), (b) a broker/dealer (acting as principal)
        registered as a broker or dealer under Section 15 of the Exchange Act (a
        "broker/dealer"), the unsecured short-term debt obligations of which are
        rated "P-1" by Moody's and at least "A-1" by Standard & Poor's at the
        time of entering into such repurchase obligation (a "rated
        broker/dealer"), (c) an unrated broker/dealer (an "unrated
        broker/dealer"), acting as principal that is a wholly-owned subsidiary
        of a non-bank holding company the unsecured short-term debt obligations
        of which are rated "P-1" by Moody's and at least "A-1" by Standard &
        Poor's at the time of entering into such repurchase obligation (a "Rated
        Holding Company"), or (d) an unrated wholly-owned subsidiary of a direct
        or indirect parent Rated Holding Company, which guarantees such
        subsidiary's obligations under such repurchase agreement (a "Guaranteed
        Counterparty"); provided that the following conditions are satisfied:

                        (A)     the aggregate amount of funds invested in
                repurchase obligations of a financial institution, a rated
                broker/dealer, an unrated broker/dealer or a Guaranteed
                Counterparty in respect of which the unsecured short-term
                ratings of Standard & Poor's are "A-1" (in the case of an
                unrated broker/dealer or Guaranteed Counterparty, such rating
                being that of the related Rated Holding Company) shall not
                exceed 20% of the outstanding Pool Balance (there being no limit
                on the amount of funds that may be invested in repurchase
                obligations in respect of which such Standard & Poor's rating is
                "A-1+" (in the case of an unrated broker/dealer or Guaranteed
                Counterparty, such rating being that of the related Rated
                Holding Company));

                                       7
<PAGE>   12

                        (B)     in the case of the Reserve Account and the Yield
                Supplement Account, the rating from Standard & Poor's in respect
                of the unsecured short term debt obligations of the financial
                institution, rated broker/dealer, unrated broker/dealer or
                Guaranteed Counterparty (in the case of an unrated broker/dealer
                or Guaranteed Counterparty, such rating being that of the
                related Rated Holding Company) shall be "A-1+";

                        (C)     the repurchase obligation must mature within 30
                days of the date on which the Indenture Trustee or the Owner
                Trustee, as applicable, enters into such repurchase obligation;

                        (D)     the repurchase obligation shall not be
                subordinated to any other obligation of the related financial
                institution, rated broker/dealer, unrated broker/dealer or
                Guaranteed Counterparty;

                        (E)     the collateral subject to the repurchase
                obligation is held, in the appropriate form, by a custodial bank
                on behalf of the Indenture Trustee or the Owner Trustee, as
                applicable;

                        (F)     the repurchase obligation shall require that the
                collateral subject thereto shall be marked to market daily;

                        (G)     in the case of a repurchase obligation of a
                Guaranteed Counterparty, the following conditions shall also be
                satisfied:

                                (1)     the Indenture Trustee or the Owner
                        Trustee, as applicable, shall have received an Opinion
                        of Counsel to the effect that the guarantee of the
                        related Rated Holding Company is a legal, valid and
                        binding agreement of the Rated Holding Company,
                        enforceable in accordance with its terms, subject to the
                        effect of bankruptcy, insolvency, reorganization and
                        moratorium or other similar laws affecting creditors'
                        rights generally and to general equitable principles;

                                (2)     the Indenture Trustee or the Owner
                        Trustee, as applicable, shall have received (x) an
                        incumbency certificate for the signer of such guarantee,
                        certified by an officer of such Rated Holding Company,
                        and (y) a resolution, certified by an officer of the
                        Rated Holding Company, of the board of directors (or
                        applicable committee thereof) of the Rated Holding
                        Company authorizing the execution, delivery and
                        performance of such guarantee by the Rated Holding
                        Company;

                                (3)     the only conditions to the obligation of
                        such Rated Holding Company to pay on behalf of the
                        Guaranteed Counterparty shall be that the Guaranteed
                        Counterparty shall not have paid under such repurchase
                        obligation when required (it being understood that no
                        notice to, demand on or other action in respect of the
                        Guaranteed Counterparty is necessary) and that the
                        Indenture Trustee or the Owner Trustee, as applicable,
                        shall make

                                       8
<PAGE>   13

                        a demand on the Rated Holding Company to make the
                        payment due under such guarantee;

                                (4)     the guarantee of the Rated Holding
                        Company shall be irrevocable with respect to such
                        repurchase obligation and shall not be subordinated to
                        any other obligation of the Rated Holding Company; and

                                (5)     each of the Rating Agencies has
                        confirmed in writing to the Indenture Trustee or the
                        Owner Trustee, as applicable, that it has reviewed the
                        form of the guarantee of the Rated Holding Company and
                        has determined that the issuance of such guarantee will
                        not result in the downgrade or withdrawal of the ratings
                        assigned to the Notes; and

                        (H)     the repurchase obligation shall require that the
                repurchase obligation be overcollateralized and shall provide
                that, upon any failure to maintain such overcollateralization,
                the repurchase obligation shall become due and payable, and
                unless the repurchase obligation is satisfied immediately, the
                collateral subject to the repurchase agreement shall be
                liquidated and the proceeds applied to satisfy the unsatisfied
                portion of the repurchase obligation; and

                (viii)  any other investment with respect to which the Servicer
        has received written notification from the Rating Agencies that the
        acquisition of such investment as an Eligible Investment will not result
        in a withdrawal or downgrading of the ratings on the Notes;

provided that, unless otherwise expressly stated herein, each of the foregoing
investments shall be denominated in U.S. dollars, shall not be purchased at a
premium, shall mature no later than the Business Day prior to the Distribution
Date immediately following the date of purchase, and shall be required to be
held to such maturity; and provided, further, that, notwithstanding clauses (i)
through (viii) above, "Eligible Investments" shall not include any security
having an "r" subscript attached to its Standard & Poor's rating.

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

        "Event of Default" shall have the meaning assigned to such term in the
Indenture.

        "Exchange Act" means the Securities Exchange Act of 1934.

        "Final Scheduled Distribution Date" means, with respect to the Class A-1
Notes, the Distribution Date in January 2002, with respect to the Class A-2
Notes, the Distribution Date in August 2003, with respect to the Class A-3
Notes, the Distribution Date in September 2004; and with respect to the Class
A-4 Notes, the Distribution Date in June 2006.

                                       9
<PAGE>   14

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

        "Holder" or "Securityholder" means the registered holder of any
Certificate or Note as evidenced by the Certificate Register (as defined in the
Trust Agreement) or Note Register (as defined in the Indenture) except that,
solely for the purposes of giving certain consents, waivers, requests or demands
pursuant to the Trust Agreement or the Indenture, the interest evidenced by any
Certificate or Note registered in the name of NARC II or NMAC, or any Person
actually known to a Trust Officer to be an Affiliate of NARC II or NMAC, shall
not be taken into account in determining whether the requisite percentage
necessary to effect any such consent, waiver, request or demand shall have been
obtained unless NARC II or NMAC are the only holders.

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

        "Indenture Trustee" means the Person acting as Indenture Trustee under
the Indenture, its successors in interest and any successor trustee under the
Indenture.

        "Initial Yield Supplement Amount" means $8,502,380.23.

        "Insolvency Event" means, with respect to a specified Person, (a) the
filing of a petition seeking entry of a decree or order for relief by a court
having jurisdiction in the premises in respect of such Person or all or
substantially all of its property in an involuntary case under any applicable
federal or state bankruptcy, insolvency or other similar law now or hereafter in
effect, or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official for such Person or for all or substantially all
of its property, or ordering the winding-up or liquidation of such Person's
affairs, and such petition shall remain unstayed and in effect for a period of
90 consecutive days; or (b) the commencement by such Person of a voluntary case
under any applicable federal or state bankruptcy, insolvency or other similar
law now or hereafter in effect, or the consent by such Person to the entry of an
order for relief in an involuntary case under any such law, or the consent by
such Person to the appointment of or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official for
such Person or for all or substantially all of its property, or the making by
such Person of any general assignment for the benefit of creditors.

        "Interest Period" means, with respect to any Distribution Date and the
Class A-1 Notes, the period from (and including) the preceding Distribution Date
to (but excluding) such Distribution Date, except that the initial Interest
Period will be from (and including) the Closing Date to (but excluding) February
15, 2001, and, with respect to any Distribution Date and the Class A-2 Notes,
the Class A-3 Notes, and the Class A-4 Notes, the period from (and including)
the 15th day of the preceding calendar month to (but excluding) the 15th day of
the month in which such Distribution Date occurs, except that the initial
Interest Period will be from (and including) the Closing Date to (but excluding)
February 15, 2001.

                                       10
<PAGE>   15

        "Interest Rate" means the Class A-1 Interest Rate, the Class A-2
Interest Rate, the Class A-3 Interest Rate or the Class A-4 Interest Rate.

        "Issuer" means Nissan Auto Receivables 2001-A Owner Trust.

        "Lease Contract" means any vehicle lease contract that appears on
Schedule C to this Agreement (which Schedule C may be in the form of microfiche,
CD, datatape or paper).

        "Lease Contract Payments" means, with respect to any Lease Contract, the
monthly base rent payments in accordance with the terms of the related Lease
Contract.

        "Lease Payment Deposit" means, with respect to any Distribution Date,
all Lease Contract Payments received by the Seller as of such Distribution Date
with respect to the related Collection Period.

        "Lien" means any security interest, lien, charge, pledge, equity or
encumbrance of any kind, other than, in the case of a Financed Vehicle, tax
liens, mechanics' liens and any liens that attach to such Financed Vehicle by
operation of law.

        "Liquidated Receivable" means a Defaulted Receivable as to which the
related Financed Vehicle has been liquidated by the Servicer.

        "Monthly Remittance Conditions" shall have the meaning assigned to such
term in Section 5.02.

        "Moody's" means Moody's Investors Service, Inc.

        "NARC II" means Nissan Auto Receivables Corporation II, a Delaware
corporation.

        "Net Liquidation Proceeds" means the monies collected from whatever
source on a Liquidated Receivable, net of the sum of any amounts expended by the
Servicer for the account of the Obligor, plus any amounts required by law to be
remitted to the Obligor.

        "Nissan" means Nissan Motor Co., Ltd.

        "NMAC" means Nissan Motor Acceptance Corporation, in its individual
capacity and not as Servicer.

        "Nonrecoverable Advance" means any Outstanding Advance with respect to
(i) any Defaulted Receivable or (ii) any Receivable as to which the Servicer
determines that any recovery from payments made on or with respect to such
Receivable is unlikely.

        "Note" means any one of the notes issued under the Indenture.

        "Note Depository Agreement" shall have the meaning assigned to such term
in the Indenture.

        "Note Factor" means, with respect to any Class of Notes and any
Distribution Date, a seven-digit decimal figure obtained by dividing the
Outstanding Amount of such Class of Notes,

                                       11
<PAGE>   16

as of the close of business on the last day of the related Collection Period, by
the initial Outstanding Amount of that Class of Notes.

        "Noteholder" shall have the meaning assigned to such term in the
Indenture.

        "Noteholders' Distributable Amount" means, with respect to any
Distribution Date, the Aggregate Noteholders' Interest Distributable Amount with
respect to such Distribution Date plus the Noteholders' Principal Distributable
Amount with respect to such Distribution Date.

        "Noteholders' Interest Carryover Shortfall" means, with respect to any
Distribution Date and a Class of Notes, the excess, if any, of the sum of the
Noteholders' Monthly Interest Distributable Amount for such Class for the
preceding Distribution Date plus any outstanding Noteholders' Interest Carryover
Shortfall for such Class on such preceding Distribution Date, over the amount in
respect of interest that is actually paid on the Notes of such Class on such
preceding Distribution Date, plus, to the extent permitted by applicable law,
interest on the Noteholders' Interest Carryover Shortfall at the related
Interest Rate for the related Interest Period (calculated on the same basis as
interest on that Class of Notes for the same period).

        "Noteholders' Interest Distributable Amount" means, with respect to any
Distribution Date and a Class of Notes, the sum of the Noteholders' Monthly
Interest Distributable Amount for such Class plus any outstanding Noteholders'
Interest Carryover Shortfall for such Class as of the close of the immediately
preceding Distribution Date.

        "Noteholders' Monthly Interest Distributable Amount" means, with respect
to any Distribution Date and a Class of Notes, interest accrued for the related
Interest Period (calculated on the basis of, in the case of Class A-1 Notes, the
actual number of days in such Interest Period and a year assumed to consist of
360 days, and in the case of all other Classes of Notes, such Interest Period
being assumed to consist of 30 days and a year assumed to consist of 360 days)
at the related Interest Rate for such Class of Notes on the Outstanding Amount
of the Notes of such Class on the immediately preceding Distribution Date, after
giving effect to all payments of principal to Noteholders of such Class on or
prior to such Distribution Date (or, in the case of the first Distribution Date,
on the original principal amount of such Class of Notes).

        "Noteholders' Monthly Principal Distributable Amount" means, with
respect to any Distribution Date, the Noteholders' Percentage of the Allocable
Principal for such Distribution Date.

        "Noteholders' Percentage" means (i) for each Distribution Date until the
Distribution Date on which the aggregate principal amount of all of the Notes
has been paid in full, 100%; (ii) for the Distribution Date on which the Notes
have been paid in full, the percentage of Allocable Principal required to pay
all of the Notes in full; and (iii) thereafter, 0%.

        "Noteholders' Principal Carryover Shortfall" means, with respect to any
Distribution Date, the excess, if any, of the Noteholders' Monthly Principal
Distributable Amount for the preceding Distribution Date over the amount in
respect of principal that is actually paid as principal on the Notes on such
current Distribution Date. Noteholders' Principal Carryover Shortfall is not
used to determine the amount of principal due on the Notes on any Distribution
Date, but is used solely for reporting purposes.

                                       12
<PAGE>   17

         "Noteholders' Principal Distributable Amount" means, with respect to
any Distribution Date, the sum of (i) the Noteholders' Monthly Principal
Distributable Amount for such Distribution Date, and (ii) on the Final Scheduled
Distribution Date for any Class of Notes, the amount necessary to reduce the
outstanding principal amount of such Class of Notes to zero; provided, however,
that the Noteholders' Principal Distributable Amount shall not exceed the
Outstanding Amount of the Notes.

        "Note Owner" shall have the meaning assigned to such term in the
Indenture.

        "Note Pool Factor" means, with respect to any Class of Notes and any
Distribution Date, a seven-digit decimal figure obtained by dividing the
Outstanding Amount of such Class of Notes as of the close of business on the
last day of the related Collection Period by the Original Pool Balance.

        "Note Register" means the register maintained by the Indenture Trustee
pursuant to the Indenture recording the name of each Noteholder.

        "Notes" means the Class A-1 Notes, the Class A-2 Notes, the Class A-3
Notes and the Class A-4 Notes.

        "Obligor" on a Receivable means the purchaser or co-purchasers of the
Financed Vehicle or any other Person who owes payments under the Receivable (but
excluding any Dealer in respect of Dealer Recourse).

        "Officer's Certificate" means a certificate signed by the chairman of
the board, the president, any executive vice president, any vice president, the
treasurer, any assistant treasurer or the controller of the Seller or the
Servicer, as the case may be.

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

        "Optional Purchase Percentage" means 10.00%.

        "Optional Purchase Price" means, an amount equal to the aggregate
Administrative Purchase Payments for the Receivables (including Receivables that
became Defaulted Receivables in the Collection Period preceding the Distribution
Date on which a purchase pursuant to Section 9.01 is effected), plus the
appraised value of any other property held by the Trust, such value to be
determined by an appraiser mutually agreed upon by the Servicer and the
Indenture Trustee (less liquidated expenses); provided, however, that the
Optional Purchase Price shall be equal to or greater than the sum of (i) the
Outstanding Amount of all Classes of Notes, (ii) the Noteholders' Interest
Distributable Amount for all Classes of Notes for such Distribution Date, and
(iii) the Certificate Balance.

        "Original Certificate Balance" means $71,146,470.93.

                                       13
<PAGE>   18

        "Original Pool Balance" means the aggregate Principal Balance of the
Receivables on the Cutoff Date.

        "Original Principal Amount" means $201,800,000 for the Class A-1 Notes,
$350,000,000 for the Class A-2 Notes, $249,000,000 for the Class A-3 Notes and
$182,072,000 for the Class A-4 Notes.

        "Outstanding" shall have the meaning assigned to that term in the
Indenture.

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

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

         "Owner Trust Estate" means all right, title and interest of the Trust
in and to the Receivables (other than the Warranty Receivables for which the
Seller has paid the Warranty Purchase Payment in accordance with Section 3.02
and Administrative Receivables for which the Servicer has paid the
Administrative Purchase Payment in accordance with Section 4.06), and all monies
paid thereon, and all monies accrued thereon, after the Cutoff Date; security
interests in the Financed Vehicles and any accessions thereto; the Collection
Account and all funds deposited in the Collection Account; the Lease Contracts;
the Yield Supplement Account and all funds deposited in the Yield Supplement
Account, including the Lease Payment Deposits; all property (including the right
to receive Net Liquidation Proceeds) that shall have secured a Receivable and
that shall have been acquired by or on behalf of the Owner Trustee; proceeds
from claims on any physical damage, credit life or disability insurance policies
covering the Financed Vehicles or the Obligors; all right to receive payments in
respect of any Dealer Recourse with respect to the Receivables; all right, title
and interest of the Seller in and to the Purchase Agreement and the Assignment;
all right, title and interest of the Owner Trustee and the Trust pursuant to
this Agreement, the Yield Supplement Agreement and the Administration Agreement;
certain rebates of premiums and other amounts relating to certain insurance
policies and other items financed under the Receivables in effect as of the
Cutoff Date; and the proceeds of any and all of the foregoing.

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

        "Paying Agent" shall have the meaning assigned to such term in the
Indenture.

        "Person" means any individual, corporation, estate, partnership, joint
venture, association, joint stock company, limited liability company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.

        "Pool Balance" as of the close of business on the last day of a
Collection Period means the aggregate Principal Balance of the Receivables
(excluding Administrative Receivables, Warranty Receivables and Defaulted
Receivables) as of the close of business on such day;

                                       14
<PAGE>   19

provided, however, that where the Pool Balance is relevant in determining
whether the requisite percentage of Certificateholders or Noteholders (or
relevant Class or Classes of Certificates or Notes, as the case may be)
necessary to effect any consent, waiver, request or demand shall have been
obtained, the Pool Balance shall be deemed to be reduced by the amount equal to
the portion of the Pool Balance (before giving effect to this provision)
represented by the interests evidenced by any applicable Certificate or Note
registered in the name of the Seller, the Servicer or any Person actually known
to a Trust Officer of the Owner Trustee or the Indenture Trustee, as the case
may be, to be an Affiliate of the Seller or the Servicer, unless all of the
Certificates or Notes, as the case may be, are held or beneficially owned by
NMAC, NARC II or any of their Affiliates.

        "Pool Factor" for a particular Class of Notes or Certificates on any
Distribution Date means a seven-digit decimal figure indicating the principal
amount of such Class of Notes or the Certificate Balance, as the case may be, as
of the close of business on the last day of the related Collection Period as a
fraction of the Original Pool Balance.

        "Prepayment" means, with respect to any Receivable, any prepayment,
whether in part or in full, in respect of such Receivable.

        "Principal Balance" of a Receivable, as of any date of determination,
means the Amount Financed minus the sum of (i) all payments on such Receivable
allocable to principal, (ii) any refunded portion of extended warranty
protection plan or service contract costs, or of physical damage, credit life or
disability insurance premiums included in the Amount Financed, (iii) any payment
of the Administrative Purchase Payment or the Warranty Purchase Payment with
respect to the Receivable allocable to principal and (iv) any Net Liquidation
Proceeds allocable to principal.

        "Purchase Agreement" means that certain agreement, dated as of February
1, 2001, between NMAC and the Seller, relating to the purchase by the Seller
from NMAC of the Receivables.

        "Rating Agency" means, as of any date, any of the nationally recognized
statistical rating organizations that has been requested by the Seller or one of
its Affiliates to rate any Class of Notes and that is rating such Class of Notes
on such date.

        "Receivable" means any retail installment sale contract that appears on
Schedule A to this Agreement (which Schedule A may be in the form of microfiche,
CD, datatape or paper) and that has not been released by the Owner Trustee from
the Trust.

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

        "Record Date" means, with respect to the Notes of any Class and each
Distribution Date, the 14th day of the calendar month in which such Distribution
Date occurs, and, with respect to the Certificates or if Definitive Notes,
representing any Class of Notes, have been issued, the last day of the
Collection Period preceding the related Distribution Date. Any amount stated "as
of a Record Date" or "on a Record Date" shall give effect to (i) all
applications of collections, and (ii) all distributions to any party under this
Agreement, the Indenture and the Trust Agreement or to

                                       15
<PAGE>   20

the related Obligor, as the case may be, in each case as determined as of the
opening of business on the related Record Date.

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

        "Required Deposit Rating" shall have the meaning assigned to such term
in the definition of "Eligible Deposit Account."

        "Required Rate" means, with respect to each Collection Period, the sum
of (i) the Servicing Rate plus (ii) the Class A-4 Interest Rate.

        "Required Yield Supplement Amount" means, with respect to every
Distribution Date, an amount equal to the lesser of (i) the aggregate amount of
Yield Supplement Deposits that would become due for all future Distribution
Dates under the Yield Supplement Agreement, assuming (1) that payments on the
Receivables are made on their scheduled due dates, (2) that no Receivable
becomes a prepaid Receivable, and (3) a discount rate of 2.5%, and (ii) the
Initial Yield Supplement Amount.

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

        "Reserve Account Initial Deposit" means $7,905,138.53.

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

        "Scheduled Payment" on a Receivable means the payment required to be
made by the Obligor during each Collection Period that is sufficient to amortize
the related Principal Balance under the Simple Interest Method over the term of
the Receivable and to provide interest at the related APR.

        "Securities Account Control Agreement" means the Securities Account
Control Agreement dated as of February 1, 2001, among the Seller, the Trust,
Wells Fargo Bank Minnesota, National Association, as Securities Intermediary
thereunder and Wells Fargo Bank Minnesota, National Association, as Indenture
Trustee pursuant to which the Reserve Account and the Yield Supplement Account
will be established and maintained.

                                       16
<PAGE>   21

        "Securityholders" has the meaning set forth in this Section 1.01 under
the definition of "Holder."

        "Seller" means NARC II, as the seller of the Receivables under this
Agreement, and each successor to NARC II (in the same capacity) pursuant to
Section 6.04.

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

        "Servicer Default" means an event specified in Section 8.01.

        "Servicer's Certificate" means a certificate completed and executed on
behalf of the Servicer by the president, any executive vice president, any vice
president, the treasurer, any assistant treasurer, the controller or any
assistant controller of the Servicer pursuant to Section 4.08.

        "Servicing Rate" means 1.00% per annum.

        "Simple Interest Method" means the method of allocating a fixed level
payment to principal and interest pursuant to which the portion of such payment
that is allocated to interest is equal to the product of the fixed rate of
interest multiplied by the unpaid principal balance multiplied by the quotient
obtained by calculating the period of time elapsed since the preceding payment
of interest was made and dividing such period of time by 365 or 366, as
appropriate.

        "Simple Interest Receivable" means any Receivable under which the
portion of a payment allocable to interest and the portion allocable to
principal is determined in accordance with the Simple Interest Method.

        "Specified Reserve Account Balance" means with respect to any
Distribution Date, an amount equal to $7,905,138.53, provided, however, that in
the event that on any Distribution Date (i) the annualized average for the
preceding three Collection Periods (or such smaller number of Collection Periods
as have elapsed since the Cutoff Date) of the percentage equivalents of the
ratios of net losses (i.e., the net balances of all Liquidated Receivables, less
any Net Liquidation Proceeds with respect to such Liquidated Receivables from
that or prior Collection Periods) to the Pool Balance as of the first day of
each such Collection Period exceeds 3.25% or (ii) the average for the preceding
three Collection Periods (or such smaller number of Collection Periods as have
elapsed since the Cutoff Date) of the percentage equivalents of the ratios of
the number of Receivables that are delinquent 60 days or more to the outstanding
number of Receivables exceeds 2.0%, then the Specified Reserve Account Balance
for such Distribution Date (and for each succeeding Distribution Date until the
relevant averages have not exceeded the specified percentages in clauses (i) and
(ii) above for three successive Distribution Dates) shall be a dollar amount
equal to the greater of (i) $7,905,138.53 and (ii) 5.0% of the Outstanding
Amount of the Notes and the Certificate Balance as of the preceding Distribution
Date (after giving effect to payments of principal made on such Distribution
Date).

        "Standard & Poor's" means Standard & Poor's Ratings Services, a Division
of The McGraw-Hill Companies Inc.

                                       17
<PAGE>   22

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

        "Supplemental Servicing Fee" means, with respect to any Distribution
Date, all late fees, prepayment charges and other administrative fees and
expenses or similar charges allowed by applicable law with respect to the
Receivables received by the Servicer during the related Collection Period and
any interest earned from the investment of monies in the Accounts (other than
the Yield Supplement Account) during the related Collection Period.

        "Total Servicing Fee" means the sum of the Base Servicing Fee and the
Supplemental Servicing Fee.

        "Trust" means the Issuer.

        "Trust Agreement" means the Trust Agreement, dated December 7, 2000, as
amended by the Amended and Restated Trust Agreement, dated as of February 1,
2001, between the Seller and the Owner Trustee.

        "Trust Collection Account" shall have the meaning assigned to such term
in Section 5.01(c).

        "Trust Estate" means all money, instruments, rights and other property
that are subject or intended to be subject to the lien and security interest of
the Indenture for the benefit of the Noteholders (including, without limitation,
all property and interests granted to the Indenture Trustee pursuant to the
Granting Clause of the Indenture), including all proceeds thereof.

        "Trust Officer" means, in the case of the Indenture Trustee, any officer
within the Corporate Trust Office of the Indenture Trustee, including any Vice
President, Assistant Vice President, Secretary, Assistant Secretary or any other
officer of the Indenture Trustee customarily performing functions similar to
those performed by any of the above designated officers and also, with respect
to a particular matter, any other officer to whom such matter is referred
because of such officer's knowledge of and familiarity with the particular
subject and, with respect to the Owner Trustee, any officer in the Corporate
Trust Administration Department of the Owner Trustee with direct responsibility
for the administration of the Trust Agreement and the Basic Documents on behalf
of the Owner Trustee.

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

        "USAP" shall have the meaning assigned to such term in Section 4.10.

        "Warranty Purchase Payment," for any Warranty Receivable as of the last
day of any Collection Period, means the sum of the Principal Balance thereof as
of the beginning of such Collection Period plus interest accrued thereon through
the due date for the Obligor's payment in such Collection Period, at the related
APR, after giving effect to the receipt of monies collected (from whatever
source other than Advances) on such Warranty Receivable, if any, during such
Collection Period.

                                       18
<PAGE>   23

        "Warranty Receivable" means a Receivable purchased as of the close of
business on the last day of a Collection Period by the Seller pursuant to
Section 3.02.

        "Yield Supplement Account" means the segregated trust account
established and maintained for the benefit of the Noteholders pursuant to
Section 5.08(a).

        "Yield Supplement Agreement" means the agreement, dated as of the date
of this Agreement, among the Seller, NMAC, Wells Fargo Bank Minnesota, National
Association, as Indenture Trustee, and the Trust, substantially in the form
attached hereto as Exhibit A.

        "Yield Supplement Amount" means, with respect to any Distribution Date,
the aggregate amount on deposit in the Yield Supplement Account after giving
effect to the withdrawal therefrom of the related Yield Supplement Deposit and
without regard to any amounts on deposit therein in respect of interest or
investment earnings earned on the investment of amounts on deposit therein in
Eligible Investments for any period.

        "Yield Supplement Deposit" means, with respect to any Distribution Date,
the amount by which (a) the aggregate amount of interest that would have been
due during the related Collection Period on all Yield Supplemented Receivables
if such Yield Supplemented Receivables bore interest at the Required Rate
exceeds (b) the amount of interest accrued on such Yield Supplemented
Receivables at their respective APRs and due during such Collection Period.

        "Yield Supplemented Receivable" means any Receivable that has an APR
less than the Required Rate.

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

                                   ARTICLE II

                            Conveyance of Receivables

        SECTION 2.01 Conveyance of Receivables.

        (a)     In consideration of the premises and the agreements, provisions
and covenants herein contained and other good and valuable consideration to be
delivered to the Seller

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<PAGE>   24

hereunder, on behalf of the Issuer, the Seller does hereby sell, transfer,
assign and otherwise convey to the Issuer, without recourse (but subject to the
Seller's obligations in this Agreement):

                (i)     all right, title and interest of the Seller in and to
        the Receivables (including all related Receivable Files) listed in
        Schedule A hereto and all monies due thereon or paid thereunder or in
        respect thereof (including proceeds of the repurchase of Receivables by
        the Seller pursuant to Section 3.02 or the purchase of Receivables by
        the Servicer pursuant to Section 4.06 or 9.01) after the Cutoff Date;

                (ii)    the right of the Seller in the security interests in the
        Financed Vehicles granted by the Obligors pursuant to the Receivables
        and any related property;

                (iii)   the right of the Seller in any proceeds from claims on
        any physical damage, credit life, credit disability or other insurance
        policies covering the Financed Vehicles or the Obligors;

                (iv)    the right of the Seller through NMAC to receive payments
        in respect of any Dealer Recourse with respect to the Receivables;

                (v)     the rights of the Seller under the Purchase Agreement
        and the Assignment;

                (vi)    the right of the Seller to realize upon any property
        (including the right to receive future Net Liquidation Proceeds) that
        shall have secured a Receivable;

                (vii)   the right of the Seller in rebates of premiums and other
        amounts relating to insurance policies and other items financed under
        the Receivables in effect as of the Cutoff Date;

                (viii)  the Lease Contracts and all rights of the Seller to
        receive the Lease Contract Payments;

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

                (x)     all proceeds of the foregoing.

        On the Closing Date, the Seller shall deliver to, or to the order of,
the Issuer all property conveyed pursuant to this Section 2.01(a), except for
monies received in respect of the Receivables after the Cutoff Date and before
the Closing Date which shall be deposited by NMAC (in its individual capacity or
as the Servicer) into the Collection Account no later than the first Record Date
after the Closing Date. Concurrently therewith and in exchange therefor, the
Issuer shall deliver to, or to the order of, the Seller the Notes and the
Certificates.

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

                                       20
<PAGE>   25

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

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

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

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

        SECTION 2.02 Custody of Receivables Files. To assure uniform quality in
servicing the Receivables and to reduce administrative costs, the Issuer, upon
the execution and delivery of this Agreement, appoints the Servicer, and the
Servicer accepts such appointment, to act as the agent of the Issuer as
custodian of the following documents or instruments that are hereby
constructively delivered to the Issuer with respect to each Receivable:

                (a)     the original of such Receivable (or a photocopy or other
        image thereof that the Servicer shall keep on file in accordance with
        its customary procedures) fully executed by the Obligor;

                (b)     the original credit application fully executed by the
        related Obligor (or a photocopy or other image thereof that the Servicer
        shall keep on file in accordance with its customary procedures);

                (c)     the original certificate of title (or a photocopy or
        other image thereof or such documents that the Servicer shall keep on
        file in accordance with its customary procedures), evidencing the
        security interest of the Servicer in the related Financed Vehicle; and

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

        SECTION 2.03 Acceptance by Issuer. The Issuer acknowledges its
acceptance pursuant to this Agreement, of all right, title and interest in and
to the Receivables and other property

                                       21
<PAGE>   26

conveyed by the Seller pursuant to this Agreement and declares and shall declare
from and after the date hereof that the Issuer holds and shall hold such right,
title and interest, upon the terms and conditions set forth in this Agreement.

                                   ARTICLE III

                                 The Receivables

        SECTION 3.01 Representations and Warranties of the Seller with Respect
to the Receivables. The Seller makes the following representations and
warranties as to the Receivables on which the Issuer is deemed to have relied in
acquiring the Receivables. Such representations and warranties speak as of the
execution and delivery of this Agreement and as of the Closing Date, but shall
survive the sale, transfer and assignment of the Receivables to the Issuer and
the pledge thereof to the Indenture Trustee pursuant to the Indenture.

                (a)     Characteristics of Receivables. Each Receivable (i) has
        been originated in the United States of America by a Dealer for the
        retail sale of a Financed Vehicle in the ordinary course of such
        Dealer's business, has been fully and properly executed by the parties
        thereto, has been purchased by the Seller from NMAC pursuant to the
        Purchase Agreement, which in turn has purchased such Receivables from
        such Dealer under an existing dealer agreement with NMAC, and has been
        validly assigned by such Dealer to NMAC, which in turn has been validly
        assigned pursuant to the Purchase Agreement by NMAC to the Seller in
        accordance with its terms, (ii) created a valid, subsisting and
        enforceable security interest in favor of NMAC in such Financed Vehicle,
        which security interest has been validly assigned pursuant to the
        Purchase Agreement by NMAC to the Seller, which in turn has been validly
        assigned by the Seller to the Issuer in accordance with the terms
        hereof, (iii) contains customary and enforceable provisions such that
        the rights and remedies of the holder thereof are adequate for
        realization against the collateral of the benefits of the security, (iv)
        provides for level monthly payments (provided that the payment in the
        first or last month in the life of the Receivable may be minimally
        different from the level payment) that fully amortize the Amount
        Financed over an original term of no greater than 60 months, and (v)
        provides for interest at the related APR.

                (b)     Schedule of Receivables. The information set forth in
        Schedule A to this Agreement was true and correct in all material
        respects as of the opening of business on the Cutoff Date; the
        Receivables were selected at random from NMAC's retail installment sale
        contracts (other than contracts originated in Alabama, Hawaii or
        Maryland) meeting the criteria of the Trust set forth in this Agreement;
        and no selection procedures believed to be adverse to the
        Securityholders were utilized in selecting the Receivables.

                (c)     Compliance with Law. Each Receivable, the origination of
        such Receivable, and the sale of the Financed Vehicle complied at the
        time it was originated or made and at the execution of this Agreement
        complies in all material respects with all requirements of applicable
        federal, state and local laws, and regulations thereunder, including
        usury

                                       22
<PAGE>   27

        laws, the Federal Truth-in-Lending Act, the Equal Credit Opportunity
        Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices
        Act, the Federal Trade Commission Act, the Magnuson-Moss Warranty Act,
        the Soldiers and Sailors Civil Relief Act of 1940, the Federal Reserve
        Board's Regulations B and Z, and state adaptations of the National
        Consumer Credit Protection Act and of the Uniform Consumer Credit Code,
        state "Lemon Laws" designed to prevent fraud in the sale of automobiles
        and other consumer credit laws and equal credit opportunity and
        disclosure laws.

                (d)     Binding Obligation. Each Receivable represents the
        genuine, legal, valid and binding payment obligation in writing of the
        Obligor, enforceable by the holder thereof in accordance with its terms
        subject to the effect of bankruptcy, insolvency, reorganization,
        moratorium or other similar laws affecting creditors' rights generally
        and by general equitable principles.

                (e)     Security Interest in Financed Vehicle. (i) Immediately
        prior to the sale, assignment and transfer thereof to the Issuer, each
        Receivable was secured by a validly perfected first priority security
        interest in the Financed Vehicle in favor of NMAC as secured party or
        all necessary and appropriate actions shall have been commenced that
        would result in the valid perfection of a first priority security
        interest in the Financed Vehicle in favor of NMAC as secured party, and
        (ii) as of the Cutoff Date, according to the records of NMAC, no
        Financed Vehicle has been repossessed and the possession thereof not
        reinstated.

                (f)     Receivables in Force. No Receivable has been satisfied,
        subordinated or rescinded, nor has any Financed Vehicle been released
        from the lien granted by the related Receivable in whole or in part.

                (g)     No Waiver. No provision of a Receivable has been waived
        in a manner that is prohibited by the provisions of Section 4.01 or that
        would cause such Receivable to fail to meet all of the other
        requirements and warranties made by the Seller herein with respect
        thereto.

                (h)     No Defenses. No Receivable is subject to any right of
        rescission, setoff, counterclaim or defense, including the defense of
        usury, and the operation of any of the terms of any Receivable, or the
        exercise of any right thereunder, will not render such Receivable
        unenforceable in whole or in part or subject such Receivable to any
        right of rescission, setoff, counterclaim or defense, including the
        defense of usury, and no such right of rescission, setoff, counterclaim
        or defense has been asserted with respect thereto.

                (i)     No Liens. To the Seller's knowledge, no liens have been
        filed for work, labor or materials relating to a Financed Vehicle that
        shall be liens prior to, or equal or coordinate with, the security
        interest in the Financed Vehicle granted by the Receivable.

                (j)     No Default. Except for payment defaults continuing for a
        period of not more than 29 days as of the Cutoff Date, no default,
        breach, violation or event permitting acceleration under the terms of
        any Receivable has occurred; and no continuing condition that with
        notice or the lapse of time would constitute a default, breach,
        violation or event

                                       23
<PAGE>   28

        permitting acceleration under the terms of any Receivable has arisen
        (other than deferrals and waivers of late payment charges or fees
        permitted hereunder).

                (k)     Insurance. NMAC, in accordance with its customary
        procedures, has determined at the time of origination of each Receivable
        that the related Obligor has agreed to obtain physical damage insurance
        covering the Financed Vehicle and the Obligor is required under the
        terms of the related Receivable to maintain such insurance.

                (l)     Title. It is the intention of the Seller that the
        transfer and assignment herein contemplated constitute a sale of the
        Receivables from the Seller to the Trust and that the beneficial
        interest in and title to the Receivables not be part of the Seller's
        estate in the event of the filing of a bankruptcy petition by or against
        the Seller under any bankruptcy law. Immediately prior to the transfer
        and assignment herein contemplated, the Seller had good and marketable
        title to each Receivable free and clear of all Liens, and immediately
        upon the transfer thereof, the Issuer, for the benefit of the
        Noteholders and the Certificateholders, shall have good and marketable
        title to each Receivable, free and clear of all Liens and rights of
        others. Each Receivable File contains the original certificate of title
        (or a photocopy or image thereof) or evidence that an application for a
        certificate of title has been filed.

                (m)     Lawful Assignment. No Receivable has been originated in,
        or shall be subject to the laws of, any jurisdiction under which the
        sale, transfer and assignment of such Receivable under this Agreement
        are unlawful, void or voidable.

                (n)     All Filings Made. All filings (including, without
        limitation, UCC filings) necessary in any jurisdiction to give the
        Relevant Trustee a first priority perfected ownership interest in the
        Receivables have been made or have been delivered in form suitable for
        filing to the Relevant Trustee.

                (o)     Chattel Paper. Each Receivable constitutes "chattel
        paper," as such term is defined in the UCC.

                (p)     Simple Interest Receivables. All of the Receivables are
        Simple Interest Receivables.

                (q)     One Original. There is only one original executed copy
        of each Receivable.

                (r)     No Amendments. No Receivable has been amended such that
        the amount of the Obligor's Scheduled Payments has been increased.

                (s)     APR. The APR of each Receivable equals or exceeds 0.9%.

                (t)     Maturity. As of the Cutoff Date, each Receivable had a
        remaining term to maturity of not less than 3 months and not greater
        than 59 months.

                (u)     Balance. Each Receivable had an original Principal
        Balance of not more than $50,000 and, as of the Cutoff Date, had a
        principal balance of not less than $2,000 and not more than $48,000.

                                       24
<PAGE>   29

                (v)     Delinquency. No Receivable was more than 29 days past
        due as of the Cutoff Date, and no Receivable has been extended by more
        than two months.

                (w)     Bankruptcy. No Obligor was the subject of a bankruptcy
        proceeding (according to the records of NMAC) as of the Cutoff Date.

                (x)     Transfer. Each Receivable prohibits the sale or transfer
        of the Financed Vehicle without the consent of NMAC.

                (y)     New, Near-New and Used Vehicles. Each Financed Vehicle
        was a new, near-new or used automobile or light-duty truck at the time
        the related Obligor executed the retail installment sale contract.

                (z)     Origination. Each Receivable has an origination date on
        or after October 1, 1996.

                (aa)    Location of Receivable Files. The Receivable Files shall
        be kept at one or more of the locations listed in Schedule B hereto.

                (bb)    Forced-Placed Insurance Premiums. No contract relating
        to any Receivable has had forced-placed insurance premiums added to the
        amount financed.

                (cc)    No Fraud or Misrepresentation. To the knowledge of the
        Seller, no Receivable was originated by a Dealer and sold by such Dealer
        to the Seller with any conduct constituting fraud or misrepresentation
        on the part of such Dealer.

                (dd)    No Further Amounts Owed on the Receivables. No further
        amounts are owed by the Seller to any Obligor under the Receivables.

        SECTION 3.02 Repurchase upon Breach. The Seller, the Servicer or the
Issuer, as the case may be, shall inform the other parties to this Agreement and
the Indenture Trustee promptly, in writing, upon the discovery of any breach of
the Seller's representations and warranties pursuant to Section 3.01 that
materially and adversely affects the interests of the Securityholders in any
Receivable. Unless the breach shall have been cured by the last day of the
second Collection Period following such discovery (or, at the Seller's election,
the last day of the first Collection Period following such discovery), the
Seller shall be obligated (whether or not such breach was known to the Seller on
the Closing Date), and the Issuer shall enforce the obligation of the Seller
under this Agreement and, if necessary, the Seller shall enforce the obligation
of NMAC under the Purchase Agreement, to repurchase any Receivable the
Securityholders' interest in which was materially and adversely affected by the
breach as of such last day. A breach of the representation in Section
3.01(a)(iv), (t) or (u) shall be deemed to affect materially and adversely the
related Receivable. In consideration of the purchase of the Receivables, the
Seller shall remit the Warranty Purchase Payment in the manner specified in
Section 5.05. For purposes of this Section 3.02, the Warranty Purchase Payment
of a Receivable that is not consistent with the Seller's warranty pursuant to
Section 3.01(a)(iv) shall include such additional amount as shall be necessary
to provide the full amount of interest as contemplated therein to the date of
repurchase. The sole remedy of the Trust, the Indenture Trustee (by operation of
the assignment of the Issuer's rights hereunder pursuant to the Indenture) or
any

                                       25
<PAGE>   30

Securityholder with respect to a breach of the Seller's representations and
warranties pursuant to Section 3.01 shall be to require the Seller to repurchase
Receivables pursuant to this Section and to enforce the obligation of NMAC to
the Seller to repurchase such Receivables pursuant to the Purchase Agreement.

        SECTION 3.03 Duties of Servicer as Custodian.

                (a)     Safekeeping. The Servicer shall hold the Receivable
        Files as custodian for the benefit of the Issuer and maintain such
        accurate and complete accounts, records and computer systems pertaining
        to each Receivable File as shall enable the Issuer to comply with this
        Agreement. In performing its duties as custodian, the Servicer shall act
        with reasonable care, using that degree of skill and attention that the
        Servicer exercises with respect to the receivable files relating to all
        comparable automotive receivables that the Servicer services for itself
        or others. In accordance with its customary practices with respect to
        its retail installment sale contracts, the Servicer shall conduct, or
        cause to be conducted, periodic audits of the Receivable Files held by
        it under this Agreement and of the related accounts, records and
        computer systems, in such a manner as shall enable the Issuer, the Owner
        Trustee or the Indenture Trustee to verify the accuracy of the
        Servicer's record keeping. The Servicer shall promptly report to the
        Issuer and the Indenture Trustee any material failure on its part to
        hold the Receivable Files and maintain its accounts, records and
        computer systems as herein provided in all material respects and shall
        promptly take appropriate action to remedy any such material failure.
        Nothing herein shall be deemed to require an initial review or any
        periodic review by the Issuer, the Owner Trustee or the Indenture
        Trustee of the Receivable Files.

                (b)     Maintenance of and Access to Records. The Servicer shall
        maintain each Receivable File at one of its offices specified in
        Schedule B or at such other office as shall be specified to the Owner
        Trustee and the Indenture Trustee by written notice from the Servicer
        not later than 90 days after any change in location. The Servicer shall
        make available to the Owner Trustee and the Indenture Trustee or their
        respective duly authorized representatives, attorneys or auditors the
        Receivable Files and the related accounts, records and computer systems
        maintained by the Servicer at such times during normal business hours as
        the Owner Trustee or the Indenture Trustee shall instruct. The Servicer
        shall permit the Owner Trustee, the Indenture Trustee and their
        respective agents at any time during normal business hours upon
        reasonable prior notice to inspect, audit and make copies of and
        abstracts from the Servicer's records regarding any Receivable.

                (c)     Release of Documents. Upon the occurrence and during the
        continuation of a Servicer Default or to the extent necessary for the
        Indenture Trustee to comply with its obligations under this Agreement,
        the Servicer shall, upon instruction from the Indenture Trustee, release
        any Receivable File to the Indenture Trustee, the Indenture Trustee's
        agent or the Indenture Trustee's designee, as the case may be, at such
        place or places as the Indenture Trustee may designate, as soon as
        practicable.

        SECTION 3.04 Instructions; Authority To Act. The Servicer shall be
deemed to have received proper instructions with respect to the Receivable Files
upon its receipt of written instructions signed by a Trust Officer of the Owner
Trustee or the Indenture Trustee.

                                       26
<PAGE>   31

        SECTION 3.05 Custodian's Indemnification. The Servicer, as custodian,
shall indemnify the Issuer, the Owner Trustee and the Indenture Trustee for any
and all liabilities, obligations, losses, compensatory damages, payments, costs
or expenses of any kind whatsoever that may be imposed on, incurred by or
asserted against any of them as the result of any improper act or omission in
any way relating to the maintenance and custody by the Servicer as custodian of
the Receivable Files; provided, however, that the Servicer shall not be liable
to the Owner Trustee for any portion of any such amount resulting from the
willful misfeasance, bad faith or negligence of the Owner Trustee, and the
Servicer shall not be liable to the Indenture Trustee for any portion of any
such amount resulting from the willful misfeasance, bad faith or negligence of
the Indenture Trustee.

        SECTION 3.06 Effective Period and Termination. The Servicer's
appointment as custodian shall become effective as of the Cutoff Date, and shall
continue in full force and effect until terminated pursuant to this Section. If
NMAC shall resign as Servicer in accordance with the provisions of this
Agreement or if all of the rights and obligations of any Servicer shall have
been terminated under Section 8.01, the appointment of NMAC as custodian may be
terminated by the Indenture Trustee or by the Holders of Notes evidencing not
less than 25% of the Outstanding Amount of the Notes (but excluding for purposes
of such calculation and action all Notes held or beneficially owned by NMAC,
NARC II or any of their Affiliates unless all of the Notes are held or
beneficially owned by NMAC, NARC II or any of their Affiliates) or, with the
consent of Holders of the Notes evidencing not less than 25% of the Outstanding
Amount of the Notes, by the Owner Trustee or by the Certificateholders
evidencing not less than 25% of the Certificate Balance (but excluding for
purposes of such calculation and action all Certificates held or beneficially
owned by NMAC, NARC II or any of their Affiliates unless all of the Certificates
are held or beneficially owned by NMAC, NARC II or any of their Affiliates), in
the same manner as the Indenture Trustee or such Holders may terminate the
rights and obligations of the Servicer under Section 8.01. The Indenture Trustee
or, with the consent of the Indenture Trustee, the Issuer may terminate the
Servicer's appointment as custodian, with cause, at any time upon written
notification to the Servicer, and without cause upon 30 days' prior written
notification to the Servicer. As soon as practicable after any termination of
such appointment, the Servicer shall deliver the Receivable Files and the
related accounts and records maintained by the Servicer to the Relevant Trustee
or the agent thereof at such place or places as the Relevant Trustee may
reasonably designate.

                                   ARTICLE IV

                   Administration and Servicing of Receivables

        SECTION 4.01 Duties of Servicer.

                (a)     The Servicer shall manage, service, administer and make
        collections on the Receivables with reasonable care, using that degree
        of skill and attention that the Servicer exercises with respect to all
        comparable receivables that it services for itself or others. Except
        with respect to Defaulted Receivables, Administrative Receivables or
        Warranty Receivables, the Servicer shall not change the amount of or
        reschedule the due date of

                                       27
<PAGE>   32

        any Scheduled Payment, change the APR of, or extend any Receivable
        except as provided herein or change any material term of a Receivable;
        provided, however, that:

                        (1)     if a default, breach, violation, delinquency or
        event permitting acceleration under the terms of any Receivable shall
        have occurred or, in the judgment of the Servicer, is imminent, the
        Servicer may (A) extend such Receivable for credit related reasons that
        would be acceptable to the Servicer with respect to comparable new,
        near-new or used automobile or light-duty truck receivables that it
        services for itself, but only if (i) the final scheduled payment date of
        such Receivable as extended would not be later than the last day of the
        Collection Period preceding the Final Scheduled Distribution Date for
        the Class A-4 Notes, and (ii) the rescheduling or extension would not
        modify the terms of such Receivable in a manner which would constitute a
        cancellation of such Receivable and the creation of a new receivable for
        federal income tax purposes; or (B) reduce an Obligor's monthly payment
        amount in the event of a prepayment resulting from refunds of credit
        life and disability insurance premiums and service contracts and make
        similar adjustments in an Obligor's payment terms to the extent required
        by law;

                        (2)     if at the end of the scheduled term of any
        Receivable, the outstanding principal amount thereof is such that the
        final payment to be made by the related Obligor is larger than the
        regularly scheduled payment of principal and interest made by such
        Obligor, the Servicer may permit such Obligor to pay such remaining
        principal amount in more than one payment of principal and interest,
        provided that the last such payment shall be due on or prior to the last
        day of the Collection Period preceding the Final Scheduled Distribution
        Date for the Class A-4 Notes; and

                        (3)     the Servicer may in its discretion waive any
        late payment charge or any other fees that may be collected in the
        ordinary course of servicing a Receivable.

                (b)     The Servicer's duties shall include collection and
        posting of all payments, responding to inquiries of Obligors on the
        Receivables, investigating delinquencies, sending remittance advises to
        Obligors, reporting tax information to Obligors, accounting for
        collections, furnishing monthly and annual statements to the Owner
        Trustee and the Indenture Trustee with respect to distributions and
        making Advances pursuant to Section 5.04.

                (c)     Without limiting the generality of the foregoing, the
        Servicer is authorized and empowered to execute and deliver, on behalf
        of itself, the Trust, the Owner Trustee, the Indenture Trustee and the
        Securityholders or any of them, any and all instruments of satisfaction
        or cancellation, or partial or full release or discharge, and all other
        comparable instruments, with respect to the Receivables or to the
        Financed Vehicles securing the Receivables. If the Servicer shall
        commence a legal proceeding to enforce a Receivable, the Issuer (in the
        case of a Receivable other than an Administrative Receivable or a
        Warranty Receivable) shall thereupon be deemed to have automatically
        assigned, solely for the purpose of collection, such Receivable to the
        Servicer. If in any enforcement suit or legal proceeding it shall be
        held that the Servicer may not enforce a

                                       28
<PAGE>   33

        Receivable on the ground that it shall not be a real party in interest
        or a holder entitled to enforce such Receivable, the Issuer shall, at
        the Servicer's expense and direction, take steps to enforce the
        Receivable, including bringing suit in its name or the name of the
        Indenture Trustee or the Securityholders. The Issuer shall furnish the
        Servicer with any powers of attorney and other documents reasonably
        necessary or appropriate to enable the Servicer to carry out its
        servicing and administrative duties hereunder.

                (d)     The Servicer, at its expense, shall obtain on behalf of
        the Trust all licenses, including those required under the Pennsylvania
        Motor Vehicle Sales Finance Act, required by the laws of any
        jurisdiction to be held by the Trust in connection with ownership of the
        Receivables, and shall make all filings and pay all fees as may be
        required in connection therewith during the term hereof. Nothing in the
        foregoing or in any other section of this Agreement shall be construed
        to prevent the Servicer from implementing new programs, whether on an
        intermediate, pilot or permanent basis, or on a regional or nationwide
        basis, or from modifying its standards, policies and procedures as long
        as, in each case, the Servicer does or would implement such programs or
        modify its standards, policies and procedures in respect of comparable
        assets serviced for itself in the ordinary course of business.

        SECTION 4.02 Collection of Receivable Payments. The Servicer shall make
reasonable efforts to collect all payments called for under the terms and
provisions of the Receivables as and when the same shall become due and shall
follow such collection procedures as it follows with respect to all comparable
receivables that it services for itself or others.

        SECTION 4.03 Realization upon Receivables. On behalf of the Trust, the
Servicer shall use commercially reasonable efforts, consistent with its
customary servicing procedures, to repossess or otherwise convert the ownership
of the Financed Vehicle securing any Receivable as to which the Servicer shall
have determined eventual payment in full is unlikely. The Servicer shall follow
such customary and usual practices and procedures as it shall deem necessary or
advisable in its servicing of comparable receivables, which may include
reasonable efforts to realize upon any Dealer Recourse and selling the related
Financed Vehicle at public or private sale. The foregoing shall be subject to
the provision that, in any case in which the Financed Vehicle shall have
suffered damage, the Servicer shall not expend funds in connection with the
repair or the repossession of such Financed Vehicle unless it shall determine in
its discretion that such repair and/or repossession will increase the Net
Liquidation Proceeds.

        SECTION 4.04 Maintenance of Security Interests in Financed Vehicles. The
Servicer shall, in accordance with its customary servicing procedures, take such
steps as are necessary to maintain perfection of the security interest created
by each Receivable in the related Financed Vehicle. The Servicer is hereby
authorized to take such steps as are necessary to re-perfect such security
interest on behalf of the Issuer and the Indenture Trustee in the event of the
relocation of a Financed Vehicle or for any other reason. If the assignment of a
Receivable to the Trust is insufficient, without a notation on the related
Financed Vehicle's certificate of title, to grant to the Trust a first priority
perfected security interest in the related Financed Vehicle, the Servicer hereby
agrees to serve as the agent of the Trust for the purpose of perfecting the
security interest of the Trust in such Financed Vehicle and agrees that the
Servicer's listing as the secured party on the certificate of title is in this
capacity as agent of the Trust.

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<PAGE>   34

        SECTION 4.05 Covenants of Servicer.

        (a)     The Servicer shall not release the Financed Vehicle securing any
Receivable from the security interest granted by such Receivable in whole or in
part except in the event of payment in full by or on behalf of the Obligor
thereunder or repossession.

        (b)     The Servicer shall not do anything to impair the rights of the
Securityholders in the Receivables.

        (c)     Except with respect to Defaulted Receivables, Administrative
Receivables or Warranty Receivables, the Servicer shall not alter the APR of any
Receivable or forgive payments on a Receivable. Except as provided in Section
4.01, the Servicer shall not modify the number of payments under a Receivable,
increase the amount financed under a Receivable, or extend the due date for any
payment on a Receivable.

        (d)     If the Servicer shall determine not to make an Advance related
to delinquency or non-payment of any Receivable pursuant to Section 5.04 because
it determines that such Advance would not be recoverable from subsequent
collections on such Receivable, such Receivable shall be designated by the
Servicer to be a Defaulted Receivable, provided that such Receivable otherwise
meets the definition of a Defaulted Receivable.

        SECTION 4.06 Purchase of Receivables upon Breach. The Servicer or the
Issuer shall inform the other party and the Indenture Trustee promptly, in
writing, upon the discovery of any breach by the Servicer of its obligations
under the second sentence of Section 4.01 or under Section 4.02, 4.04 or 4.05
that would materially and adversely affect any Receivable. Unless the breach
shall have been cured by the last day of the second Collection Period following
such discovery (or, at the Servicer's election, the last day of the first
Collection Period following discovery), the Servicer shall (whether or not such
breach was known to the Servicer on the Closing Date) purchase any Receivable
materially and adversely affected by such breach as of such last day. In
consideration of such Receivable, the Servicer shall remit the Administrative
Purchase Payment (as reduced by any Outstanding Advances with respect to such
Receivable) in the manner specified in Section 5.05. For the purposes of this
Section 4.06, the Administrative Purchase Payment shall consist in part of a
release by the Servicer of all rights of reimbursement with respect to
Outstanding Advances with respect to the purchased Receivable. The sole remedy
of the Indenture Trustee, the Owner Trustee, the Trust or the Securityholders
against the Servicer with respect to a breach by the Servicer of its obligations
under the second sentence of Section 4.01 or under Section 4.02, 4.04 or 4.05
shall be to require the Servicer to purchase Receivables pursuant to this
Section 4.06.

        SECTION 4.07 Servicing Fee and Expenses. As compensation for the
performance of its obligations hereunder, the Servicer shall be entitled to
receive on each Distribution Date the Total Servicing Fee. In addition, the
Servicer shall retain as servicing compensation all amounts other than the Lease
Contract Payments received in connection with the Lease Contracts. Except to the
extent otherwise provided herein, the Servicer shall be required to pay all
expenses incurred by it in connection with its activities under this Agreement
(including fees and disbursements of the Indenture Trustee and independent
accountants, taxes imposed on the Servicer, expenses incurred in connection with
distributions and reports to Securityholders and

                                       30
<PAGE>   35

all other fees and expenses not expressly stated under this Agreement to be for
the account of the Securityholders).

        SECTION 4.08 Servicer's Certificate.

                (a)     On or before the tenth day of each month (or, if such
        tenth day is not a Business Day, then on the next succeeding Business
        Day), the Servicer shall deliver to the Owner Trustee, each Paying
        Agent, and the Indenture Trustee, with a copy to each Rating Agency, a
        Servicer's Certificate containing all information necessary to make the
        distributions pursuant to Sections 5.06, 5.07 and 5.08 (including the
        amount of the aggregate collections on the Receivables; the aggregate
        Advances to be made by the Servicer, if any, the aggregate
        Administrative Purchase Payments for any Administrative Receivables to
        be purchased by the Servicer, and the aggregate Warranty Purchase
        Payments for any Warranty Receivables to be purchased by the Seller) for
        the Collection Period preceding the date of such Servicer's Certificate,
        all information necessary for the Owner Trustee to send statements to
        the Certificateholders and the Indenture Trustee to send statements to
        the Noteholders pursuant to the Trust Agreement or Indenture, as the
        case may be. Each of the Owner Trustee and the Indenture Trustee may
        conclusively rely on the information in any Servicer's Certificate and
        shall have no duty to confirm or verify the contents thereof.

                (b)     Concurrently with delivery of the Servicer's Certificate
        in each month, the Servicer shall deliver to the underwriters of the
        Notes the Note Factor for each Class of Notes, the Certificate Factor,
        and the Pool Factor for each Class of Notes and for the Certificates, in
        each case as of the close of business on the Distribution Date occurring
        in such month.

        SECTION 4.09 Annual Statement as to Compliance; Notice of Default. (a)
The Servicer shall deliver to the Owner Trustee, the Indenture Trustee and each
of the Rating Agencies, on or before June 30 of each year, beginning June 30,
2001, an Officers' Certificate with respect to the prior twelve months ended on
March 31 of such calendar year (or with respect to the initial Officer's
Certificate, the period from the date of the initial issuance of the Securities
to March 31, 2001), stating that (i) a review of the activities of the Servicer
during the preceding 12-month (or shorter) period and of its performance under
this Agreement has been made under such officer's supervision and (ii) to the
best of such officer's knowledge, based on such review, the Servicer has
fulfilled all its obligations under this Agreement throughout such twelve-month
(or shorter) period, or, if there has been a default in the fulfillment of any
such obligation, specifying each such default known to such officer and the
nature and status thereof. A copy of such Officer's Certificate may be obtained
by any Certificateholder or Noteholder by a request in writing to the Owner
Trustee or the Indenture Trustee addressed as set forth in Section 10.03 hereof.

                (b)     The Servicer shall deliver to the Owner Trustee, the
        Indenture Trustee and each Rating Agency, promptly after having obtained
        knowledge thereof, but in no event later than five Business Days
        thereafter, written notice in an Officer's Certificate of any event that
        with the giving of notice or lapse of time, or both, would become a
        Servicer Default under Section 8.01. The Seller shall deliver to the
        Owner Trustee, the Indenture Trustee and to each such Rating Agency,
        promptly after having obtained knowledge

                                       31
<PAGE>   36

        thereof, but in no event later than five Business Days thereafter,
        written notice in an Officer's Certificate of any event that with the
        giving of notice or lapse of time, or both, would become an Event of
        Default under Section 8.01(a)(ii) or would result in any lowering of the
        ratings described in Section 5.02(a)(ii)(A).

        SECTION 4.10 Annual Independent Certified Public Accountants' Report.
The Servicer shall cause a firm of independent certified public accountants, who
may also render other services to the Servicer, the Seller or their Affiliates,
to deliver to the Owner Trustee, the Indenture Trustee and each of the Rating
Agencies, on or before June 30 of each year, beginning June 30, 2001 with
respect to the prior 12 months ended on March 31 of such year (or with respect
to the initial reports, the period from the date of the initial issuance of the
Securities to March 31, 2001) the following reports: (a) a report that such firm
has audited the consolidated financial statements of the Servicer in accordance
with generally accepted auditing standards, that such firm is independent of the
Servicer within the meaning of the Code of Professional Ethics of the American
Institute of Certified Public Accountants ("AICPA"), and expressing such firm's
opinion thereon; and (b) a report indicating that such firm has examined, in
accordance with standards established by AICPA, management's assertion about the
Servicer's compliance with the minimum servicing standards identified in the
Mortgage Bankers Association of America's Uniform Single Attestation Program for
Mortgage Bankers ("USAP") as such standards relate to automobile and light-duty
truck loans serviced for others, and expressing such firm's opinion on such
management assertion (the "Annual USAP Report"). Upon the request of any
Certificateholder or Note Owner, the Owner Trustee or the Indenture Trustee, as
the case may be, shall promptly provide such Certificateholder or Note Owner
with a copy of such Annual USAP Report. For all purposes of this Agreement, the
Owner Trustee and the Indenture Trustee may rely on the representation of any
Person that it is a Certificateholder or a Note Owner, as the case may be.

        SECTION 4.11 Access to Certain Documentation and Information Regarding
Receivables. The Servicer shall provide to the Owner Trustee and the Indenture
Trustee access to the Receivable Files in such cases where the Securityholders
shall be required by applicable statutes or regulations to review such
documentation. In each case, such access shall be afforded without charge, but
only upon reasonable request and during the normal business hours at the
respective offices of the Servicer. Nothing in this Section shall affect the
obligation of the Servicer to observe any applicable law prohibiting disclosure
of information regarding the Obligors and the failure of the Servicer to provide
access to information as a result of such obligation shall not constitute a
breach of this Section.

        SECTION 4.12 Appointment of Subservicer. So long as NMAC acts as the
Servicer, the Servicer may at any time without notice or consent subcontract
substantially all its duties under this Agreement to any corporation more than
50% of the voting stock of which is owned, directly or indirectly, by Nissan.
The Servicer may at any time perform specific duties as servicer under this
Agreement through other subcontractors; provided, however, that no such
delegation or subcontracting shall relieve the Servicer of its responsibilities
with respect to such duties as to which the Servicer shall remain primarily
responsible with respect thereto.

        SECTION 4.13 Amendments to Schedule of Receivables. If the Servicer,
during any Collection Period, assigns to a Receivable an account number that
differs from the original

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<PAGE>   37

account number identifying such Receivable on the Schedule of Receivables, the
Servicer shall deliver to the Owner Trustee and the Indenture Trustee, on or
before the Distribution Date relating to such Collection Period, an amendment to
the Schedule of Receivables reporting the newly assigned account number,
together with the old account number of each such Receivable. The first such
delivery of amendments to the Schedule of Receivables shall include monthly
amendments reporting account numbers appearing on the Schedule of Receivables
with the new account numbers assigned to such Receivables during any prior
Collection Period.

        SECTION 4.14 Acknowledgement by Servicer of its Obligations under the
Indenture. The Servicer hereby agrees and consents to the provisions of the
Indenture applicable to it (including, without limitation, Sections 8.03(a) and
8.03(b) thereof) and agrees to be bound by such provisions.

                                    ARTICLE V

                            Distributions; Accounts;
            Statements to the Certificateholders and the Noteholders

        SECTION 5.01 Establishment of Accounts.

                (a)     The Servicer, on behalf of the Owner Trustee and the
        Indenture Trustee, shall establish the Collection Account in the name of
        the Indenture Trustee for the benefit of the Securityholders. The
        Collection Account shall be a segregated trust account initially
        established with the Indenture Trustee and maintained with the Indenture
        Trustee as long as (i) the deposits of the Indenture Trustee have the
        Required Deposit Rating or (ii) the Collection Account is maintained in
        a segregated trust account in the trust department of the Indenture
        Trustee; provided, however, that all amounts held in the Collection
        Account shall, to the extent permitted by applicable laws, rules and
        regulations and as directed by the Servicer, be invested by the
        Indenture Trustee in Eligible Investments; otherwise, such amounts shall
        be maintained in cash; provided that if (x) the Servicer shall have
        failed to give investment directions for any funds on deposit in the
        Collection Account to the Indenture Trustee by 5:00 p.m. Eastern Time
        (or such other time as may be agreed by the Servicer and the Indenture
        Trustee) on any Business Day, or (y) a Default or Event of Default shall
        have occurred and be continuing with respect to the Notes but the Notes
        shall not have been declared due and payable pursuant to the Indenture,
        or (z) if the Notes shall have been declared due and payable following
        an Event of Default, amounts collected or receivable from the Trust
        Estate are being applied in accordance with Section 5.05 of the
        Indenture as if there had not been such a declaration, then the
        Indenture Trustee shall, to the fullest extent practicable, invest and
        reinvest funds in the Collection Account in one or more Eligible
        Investments specified in clauses (i), (iv) or (vi) of the definition of
        Eligible Investments. All such Eligible Investments shall mature not
        later than the Business Day preceding the next Distribution Date, in
        such manner that such amounts invested shall be available to make the
        required distributions on the Distribution Date. The Servicer will not
        direct the Indenture Trustee, and the Issuer shall cause the Servicer
        not, to make any investment of any funds or to sell any investment held
        in the Collection Account unless the security interest granted and
        perfected in such account will continue to be perfected in such
        investment or the proceeds of such sale, in either case without any
        further action by any Person, and, in connection with any direction to
        the

                                       33
<PAGE>   38

        Indenture Trustee to make any such investment or sale, if requested by
        the Indenture Trustee, the Servicer shall deliver to the Indenture
        Trustee an Opinion of Counsel, acceptable to the Indenture Trustee, to
        such effect. Should the short-term unsecured debt obligations of the
        Indenture Trustee no longer have the Required Deposit Rating then,
        unless the Collection Account is maintained in segregated trust accounts
        in the trust department of the Indenture Trustee, the Servicer shall,
        with the Indenture Trustee's assistance as necessary and within ten
        Business Days of receipt of notice from the Indenture Trustee that the
        Indenture Trustee no longer has the Required Deposit Rating, cause the
        Collection Account (i) to be moved to segregated trust accounts in a
        bank or trust company, the short-term unsecured debt obligations of
        which shall have the Required Deposit Rating, or (ii) to be moved to the
        trust department of the Indenture Trustee.

                (b)     Earnings on investment of funds in the Collection
        Account shall be paid to the Servicer as servicing compensation, and any
        losses and investment expenses shall be charged against the funds on
        deposit in the Collection Account.

                (c)     Subject to the foregoing, the Servicer, on behalf of the
        Owner Trustee and the Indenture Trustee, shall establish and maintain
        the Collection Account as an Eligible Deposit Account in the name of and
        under the exclusive control of the Indenture Trustee, bearing a
        designation clearly indicating that the funds deposited therein are held
        for the benefit of the Securityholders. The Indenture Trustee shall
        transfer all amounts remaining on deposit in the Collection Account on
        the Distribution Date on which the Notes of all Classes have been paid
        in full (or substantially all of the Trust Estate is otherwise released
        from the lien of the Indenture) to another Eligible Deposit Account
        established pursuant to the Trust Agreement for the benefit of the
        Certificateholders (the "Trust Collection Account"), and take all
        necessary or appropriate actions to transfer all of its right, title and
        interest in the Collection Account, all funds or investments held
        therein and all proceeds thereof, whether or not on behalf of the
        Securityholders, to the Owner Trustee for the benefit of the
        Certificateholders, subject to the limitations set forth in the
        Indenture with respect to amounts held for payment to Noteholders that
        do not promptly deliver a Note for payment on such Distribution Date.
        After the transfer to the Trust Collection Account described in the
        immediately preceding sentence, references in this Agreement to
        "Collection Account" shall be deemed to be references to the "Trust
        Collection Account."

                (d)     With respect to the Collection Account and all property
        held therein, the Owner Trustee agrees, by its acceptance hereof that,
        on the terms and conditions set forth in the Indenture, for so long as
        Notes of any Class remain outstanding, the Indenture Trustee shall
        possess all right, title and interest therein (excluding interest or
        investment income thereon payable to the Servicer or the Seller, as the
        case may be), and the Accounts shall be under the sole dominion and
        control of the Indenture Trustee for the benefit of the Noteholders and
        the Certificateholders, as the case may be, as set forth in the
        Indenture. The parties hereto agree that the Issuer, the Owner Trustee
        and the Holders of the Certificates have no right, title or interest in
        the Reserve Account or any amounts on deposit therein at any time. The
        parties hereto agree that the Servicer shall have the power, revocable
        by the Indenture Trustee or by the Owner Trustee with the

                                       34
<PAGE>   39

        consent of the Indenture Trustee, to instruct the Indenture Trustee to
        make withdrawals and payments from the Collection Account for the
        purpose of permitting the Servicer, Indenture Trustee or the Owner
        Trustee to carry out its respective duties hereunder or under the
        Indenture or the Trust Agreement, as the case may be.

        Notwithstanding the foregoing, the Servicer shall be entitled to
withhold, or to be reimbursed from amounts otherwise payable into or on deposit
in the Collection Account, as the case may be, amounts previously deposited in
the Collection Account but later determined to have resulted from mistaken
deposits or posting.

        SECTION 5.02 Collections. (a) Except as otherwise provided in this
Agreement, the Servicer shall remit daily to the Collection Account all payments
received by or on behalf of the Obligors on or in respect of the Receivables
(excluding payments on the Warranty Receivables or the Administrative
Receivables) and all Net Liquidation Proceeds not later than the first Business
Day after receipt thereof. For purposes of this Article V, the phrase "payments
received by or on behalf of the Obligors" shall mean payments made by Persons
other than the Servicer. Notwithstanding the foregoing, for so long as (i) NMAC
is the Servicer, (ii) (A) NMAC's short-term unsecured debt obligations are rated
at least "P-1" by Moody's and NMAC's short-term unsecured debt obligations (or,
if NMAC is the Servicer and the Servicer then has no short-term rating from
Standard & Poor's, Nissan Capital of America, Inc.'s short-term unsecured debt
obligations) are rated "A-1" by Standard & Poor's (so long as Moody's and
Standard & Poor's are Rating Agencies), or (B) certain arrangements are made
that are acceptable to the Rating Agencies, and (iii) no Event of Default or
Servicer Default shall have occurred and be continuing (unless waived by the
appropriate Securityholders) (collectively, the "Monthly Remittance
Conditions"); the Servicer shall not be required to remit such collections to
the Collection Account on the foregoing daily basis but shall be entitled to
retain such collections, without segregation from its other funds, until the
Business Day before each Distribution Date at which time the Servicer shall
remit all such collections in respect of the related Collection Period to the
Collection Account in immediately available funds. Commencing with the first day
of the first Collection Period that begins at least two Business Days after the
day on which any Monthly Remittance Condition ceases to be satisfied and for so
long as any Monthly Remittance Condition is not satisfied, all collections then
held by the Servicer shall be immediately deposited into the Collection Account
and all future collections on or in respect of the Receivables (other than
payments on Warranty Receivables and the Administrative Receivables) and all Net
Liquidation Proceeds shall be remitted by the Servicer to the Collection Account
on a daily basis not later than the first Business Day after receipt thereof.

                (b)     The Indenture Trustee or the Owner Trustee shall not be
        deemed to have knowledge of any event or circumstances under clause
        (iii) of the definition of the Monthly Remittance Condition unless the
        Indenture Trustee or the Owner Trustee has received notice of such event
        or circumstance from the Seller or the Servicer in an Officer's
        Certificate or from the Holders of Notes evidencing not less than 25% in
        principal amount of the Outstanding Amount of the Notes, or a Trust
        Officer of the Indenture Trustee or the Owner Trustee with knowledge
        hereof or familiarity herewith has actual knowledge of such event or
        circumstances.

                                       35
<PAGE>   40

                (c)     The Servicer shall give the Owner Trustee, the Indenture
        Trustee and each Rating Agency written notice of the failure of any
        Monthly Remittance Condition (and any subsequent curing of a failed
        Monthly Remittance Condition) as soon as practical after the occurrence
        thereof but in no event later than 10 Business Days after obtaining
        knowledge thereof (it being understood that if the Monthly Remittance
        Condition is not satisfied as of the Closing Date, no such notice shall
        be required in connection therewith).

                (d)     Notwithstanding the foregoing, if a Monthly Remittance
        Condition is not satisfied, the Servicer may utilize an alternative
        remittance schedule (which may include the remittance schedule utilized
        by the Servicer before the Monthly Remittance Condition became
        unsatisfied), if the Servicer provides to the Owner Trustee and the
        Indenture Trustee written confirmation from each Rating Agency that such
        alternative remittance schedule will not result in the downgrading or
        withdrawal by such Rating Agency of the ratings then assigned to any
        Class of Notes.

        SECTION 5.03 Application of Collections. As of the Business Day
immediately preceding the related Distribution Date, all collections for the
related Collection Period with respect to each Receivable shall be applied by
the Servicer as follows:

                (a)     First, to interest accrued to date on such Receivable;

                (b)     Second, to principal until the Principal Balance of such
        Receivable is brought current;

                (c)     Third, to reduce the unpaid late charges (if any) as
        provided in such Receivable; and

                (d)     Fourth, to prepay principal on such Receivable.

        SECTION 5.04  Advances.

                (a)     The Servicer shall make a payment with respect to each
        Receivable (other than an Administrative Receivable, a Warranty
        Receivable or a Liquidated Receivable) (each, an "Advance") equal to the
        excess if any, of (x) the product of the Principal Balance of such
        Receivable as of the first day of the related Collection Period and
        one-twelfth of its APR (calculated on the basis of a 360-day year
        comprised of twelve 30-day months), over (y) the interest actually
        received by the Servicer with respect to such Receivable from the
        Obligor or from payments of the Administrative Purchase Payment or the
        Warranty Purchase Payment, as the case may be, during such Collection
        Period. The Servicer will not be obligated to make an Advance in respect
        of a Receivable (other than an Advance in respect of an interest
        shortfall arising from the Prepayment of a Receivable) to the extent
        that the Servicer, in its sole discretion, shall determine that the
        Advance constitutes a Nonrecoverable Advance. With respect to each
        Receivable, the Advance shall increase the Outstanding Advances. No
        Advances will be made with respect to the Principal Balance of the
        Receivables. The Servicer shall deposit all such Advances into the
        Collection Account in immediately available funds no later than 5:00
        p.m., New York City time, on the Business Day immediately preceding the
        related Distribution Date. To the extent that the amount set forth in
        clause (y) above with respect to a Receivable is greater than the amount
        set forth in clause (x) above with respect thereto, such amount shall be

                                       36
<PAGE>   41

        distributed to the Servicer pursuant to Section 5.06; provided, however,
        that, notwithstanding anything else herein, the Servicer shall not be
        reimbursed for any amounts representing an Advance, or any portion
        thereof, made in respect of an interest shortfall arising from the
        Prepayment of a Receivable.

                (b)     The Servicer shall be entitled to reimbursement for
        Outstanding Advances, without interest, with respect to a Receivable
        from the following sources with respect to such Receivable pursuant to
        Section 5.06(c)(i) or Section 5.06(d)(i): (i) subsequent payments made
        by or on behalf of the related Obligor, (ii) Net Liquidation Proceeds,
        and (iii) the Warranty Purchase Payments.

                (c)     To the extent that the Servicer has determined that any
        Outstanding Advance is a Nonrecoverable Advance, the Servicer may
        provide to the Owner Trustee and the Indenture Trustee an Officer's
        Certificate setting forth the amount of such Nonrecoverable Advance, and
        on the related Distribution Date, the Relevant Trustee shall remit to
        the Servicer from funds on deposit in the Collection Account an amount
        equal to the amount of such Nonrecoverable Advance pursuant to Section
        5.06(c)(ii) or Section 5.06(d)(ii).

                (d)     Notwithstanding anything to the contrary in this
        Agreement, for so long as NMAC is the Servicer, in lieu of causing the
        Servicer first to deposit and then the Relevant Trustee to remit to the
        Servicer the amounts described in clauses (i) through (iii) in Section
        5.04(b) reimbursable in respect on Outstanding Advances, or the amounts
        described in Section 5.04(c) applicable in respect of Nonrecoverable
        Advances, the Servicer may deduct such amounts from deposits otherwise
        to be made into the Collection Account.

                (e)     Notwithstanding the provisions of Section 5.04(a), no
        Successor Servicer, including the Indenture Trustee, shall be obligated
        to make Advances unless it has expressly agreed to do so in writing.

        SECTION 5.05 Additional Deposits. (a) The following additional deposits
shall be made to the Collection Account: (i) the Seller shall remit the
aggregate Warranty Purchase Payments with respect to Warranty Receivables
pursuant to Section 3.02; (ii) the Servicer shall remit (A) the aggregate
Advances pursuant to Section 5.04(a), (B) the aggregate Administrative Purchase
Payments with respect to Administrative Receivables pursuant to Section 4.06,
and (C) the amount required upon any optional purchase of the Receivables by the
Servicer, or any Successor Servicer, pursuant to Section 9.01; and (iii) the
Indenture Trustee shall transfer (A) the Yield Supplement Deposit from the Yield
Supplement Account to the Collection Account pursuant to Section 5.08, plus
reinvestment income on the Yield Supplement Account (in assuring the
availability therein of the related Available Interest), plus amounts described
in the second sentence of Section 5.08(b) and (B) the amounts described in
Sections 5.06 and 5.07 from the Reserve Account to the Collection Account
pursuant to Section 5.07.

                (b)     All deposits required to be made pursuant to this
        Section 5.05 by the Seller or the Servicer, as the case may be, may be
        made in the form of a single deposit and shall be made in immediately
        available funds, no later than 5:00 P.M., New York City time, on the
        Business Day immediately preceding the related Distribution Date. At the
        direction of the Servicer, the

                                       37
<PAGE>   42

        Relevant Trustee shall invest such amounts in Eligible Investments
        maturing not later than 12:00 P.M. New York City Time, on the related
        Distribution Date.

        SECTION 5.06 Payments and Distributions.

                (a)     The rights of the Certificateholders to receive
        distributions in respect of the Certificates shall be and hereby are
        subordinated to the rights of the Noteholders to receive distributions
        in respect of the Notes to the extent provided in this Section 5.06.

                (b)     On each Determination Date, the Servicer shall calculate
        the Available Interest, the Available Principal, the Allocable
        Principal, the Yield Supplement Deposit, the Noteholders' Distributable
        Amount, the Certificateholders' Distributable Amount, the amount to be
        distributed to Noteholders of each Class and to Certificateholders
        pursuant to Section 5.06(c) or (d), the Lease Payment Deposit with
        respect to the related Distribution Date and all other distributions,
        deposits and withdrawals to be made on the related Distribution Date.

                (c)     Subject to Section 5.06(d), on each Distribution Date,
        the Relevant Trustee shall make the following payments and distributions
        from the Collection Account (after payment of the Supplemental Servicing
        Fee to the extent not previously retained by the Servicer) in the
        following order of priority and in the amounts set forth in the
        Servicer's Certificate for such Distribution Date; provided, however,
        that such payments and distributions shall be made only from those funds
        deposited in the Collection Account for the related Collection Period:

                        (i)     to the Servicer, from amounts on deposit in the
        Collection Account, any payments in respect of Advances required to be
        reimbursed and to the extent set forth in Section 5.04(b);

                        (ii)    to the Servicer, from amounts on deposit in the
        Collection Account, any payments in respect of Nonrecoverable Advances
        required to be reimbursed and to the extent set forth in Section
        5.04(c);

                        (iii)   to the Servicer, from Available Amounts, the
        Base Servicing Fee (including any unpaid Base Servicing Fees from one or
        more prior Collection Periods);

                        (iv)    on a pro rata basis (based on the amounts
        distributable pursuant to this clause to each such Class), to the Class
        A-1 Noteholders, the Noteholders' Interest Distributable Amount for such
        Class, to the Class A-2 Noteholders, the Noteholders' Interest
        Distributable Amount for such Class, to the Class A-3 Noteholders, the
        Noteholders' Interest Distributable Amount for such Class, and to the
        Class A-4 Noteholders, the Noteholders' Interest Distributable Amount
        for such Class; such amounts to be paid from Available Amounts (after
        giving effect to any reduction in Available Amounts described in clause
        (iii) above);

                        (v)     to the Class A-1 Noteholders, an amount equal to
        the Noteholders' Principal Distributable Amount, such amount to be paid
        from Available Amounts (after

                                       38
<PAGE>   43

        giving effect to any reduction in Available Amounts described in clauses
        (iii) and (iv) above), until the principal amount of the Class A-1 Notes
        is reduced to zero;

                        (vi)    on the Distribution Date on which the Class A-1
        Notes have been paid in full and on each Distribution Date thereafter,
        to the Class A-2 Noteholders, an amount equal to the Noteholders'
        Principal Distributable Amount, such amount to be paid from Available
        Amounts (after giving effect to any reduction in Available Amounts
        described in clauses (iii) through (v) above), until the principal
        amount of the Class A-2 Notes is reduced to zero;

                        (vii)   on the Distribution Date on which the Class A-2
        Notes have been paid in full and on each Distribution Date thereafter,
        to the Class A-3 Noteholders, an amount equal to the Noteholders'
        Principal Distributable Amount, such amount to be paid from Available
        Amounts (after giving effect to any reduction in Available Amounts
        described in clauses (iii) through (vi) above), until the principal
        amount of the Class A-3 Notes is reduced to zero;

                        (viii)  on the Distribution Date on which the Class A-3
        Notes have been paid in full and on each Distribution Date thereafter,
        to the Class A-4 Noteholders, an amount equal to the Noteholders'
        Principal Distributable Amount, such amount to be paid from Available
        Amounts (after giving effect to any reduction in Available Amounts
        described in clauses (iii) through (vii) above), until the principal
        amount of the Class A-4 Notes is reduced to zero;

                        (ix)    to the Reserve Account, the amount, if any,
        necessary to cause the balance of funds therein to equal the Specified
        Reserve Account Balance with respect to such Distribution Date, such
        amounts to be paid from Available Amounts (after giving effect to any
        reduction in Available Amounts described in clauses (iii) through (viii)
        above);

                        (x)     on the Distribution Date on which the Notes have
        been paid in full and on each Distribution Date thereafter, to the
        Certificateholders, an amount equal to the Certificateholders' Principal
        Distributable Amount, such amount to be paid from Available Amounts
        (after giving effect to the reduction in Available Amounts described in
        clauses (iii) through (ix) above); and

                        (xi)    any Available Amounts remaining after giving
        effect to the foregoing, to the Seller.

                (d)     Notwithstanding the provisions of Section 5.06(c), after
        the occurrence of an Event of Default that results in the acceleration
        of any Notes, on each Distribution Date, the Relevant Trustee shall make
        the following payments and distributions from the Collection Account
        (after payment of the Supplemental Servicing Fee to the extent not
        previously retained by the Servicer) in the following order of priority
        and in the amounts set forth in the Servicer's Certificate for such
        Distribution Date; provided, however, that such payments and
        distributions shall be made only from those funds deposited in the
        Collection Account for the related Collection Period:

                                       39
<PAGE>   44
                        (i)     to the Servicer, from amounts on deposit in the
        Collection Account, any payments in respect of Advances required to be
        reimbursed and to the extent set forth in Section 5.04(b);

                        (ii)    to the Servicer, from amounts on deposit in the
        Collection Account, any payments in respect of Nonrecoverable Advances
        required to be reimbursed and to the extent set forth in Section
        5.04(c);

                        (iii)   to the Servicer, from Available Amounts, the
        Base Servicing Fee (including any unpaid Base Servicing Fees from one or
        more prior Collection Periods);

                        (iv)    to the Class A-1 Noteholders, the Noteholders'
        Interest Distributable Amount for such Class (after giving effect to any
        reduction in Available Amounts described in clause (iii) above);

                        (v)     to the Class A-1 Noteholders, until the total
        amount paid to such Noteholders in respect of principal from the Closing
        Date is equal to the Original Principal Amount for such Class of Notes,
        such amounts to be paid from Available Amounts (after giving effect to
        any reduction in Available Amounts described in clauses (iii) and (iv)
        above);

                        (vi)    on the Distribution Date on which the Class A-1
        Notes have been paid in full and on each Distribution Date thereafter,
        on a pro rata basis (based on the amounts distributable pursuant to this
        clause to each such Class), to the Class A-2 Noteholders, the
        Noteholders' Interest Distributable Amount for such Class, to the Class
        A-3 Noteholders, the Noteholders' Interest Distributable Amount for such
        Class, and to the Class A-4 Noteholders, the Noteholders' Interest
        Distributable Amount for such Class; such amounts to be paid from
        Available Amounts (after giving effect to any reduction in Available
        Amounts described in clauses (iii) through (v) above);

                        (vii)   to the Class A-2 Noteholders, the Class A-3
        Noteholders and the Class A-4 Noteholders, on a pro rata basis (based on
        the Outstanding Amount of each Class), until the total amount paid to
        such Noteholders in respect of principal from the Closing Date is equal
        to the Original Principal Amount for such Class of Notes, such amounts
        to be paid from Available Amounts (after giving effect to any reduction
        in Available Amounts described in clauses (iii) through (vi) above);

                        (viii)  on the Distribution Date on which the Notes have
        been paid in full and on each Distribution Date thereafter, to the
        Certificateholders, an amount equal to the Certificateholders' Principal
        Distributable Amount, such amount to be paid from Available Amounts
        (after giving effect to the reduction in Available Amounts described in
        clauses (iii) through (vii) above); and

                        (ix)    any Available Amounts remaining after giving
        effect to the foregoing, to the Seller.

                (e)     For purposes of determining whether an Event of Default
        pursuant to Section 5.01(b) of the Indenture has occurred, the amount of
        principal required to be paid to the

                                       40
<PAGE>   45

        Holders of any Class of Notes on any Distribution Date is the amount
        available to be paid thereto pursuant to Section 5.06(c); provided,
        however, that (i) the Class A-1 Notes are required to be paid in full on
        or before the Final Scheduled Distribution Date for such Class, meaning
        that the Class A-1 Noteholders are entitled to have received on or
        before such date payments in respect of principal in an aggregate amount
        equal to the Original Principal Amount for such Class, together with all
        interest accrued thereon through such date; (ii) the Class A-2 Notes are
        required to be paid in full on or before the Final Scheduled
        Distribution Date for such Class, meaning that the Class A-2 Noteholders
        are entitled to have received on or before such date payments in respect
        of principal in an aggregate amount equal to the Original Principal
        Amount for such Class, together with all interest accrued thereon
        through such date; (iii) the Class A-3 Notes are required to be paid in
        full on or before the Final Scheduled Distribution Date for such Class,
        meaning that the Class A-3 Noteholders are entitled to have received on
        or before such date payments in respect of principal in an aggregate
        amount equal to the Original Principal Amount for such Class, together
        with all interest accrued thereon through such date; and (iv) the Class
        A-4 Notes are required to be paid in full on or before the Final
        Scheduled Distribution Date for such Class, meaning that the Class A-4
        Noteholders are entitled to have received on or before such date
        payments in respect of principal in an aggregate amount equal to the
        Original Principal Amount for such Class, together with all interest
        accrued thereon through such date.

                (f)     Except with respect to the final payment upon retirement
        of a Note or Certificate, the Servicer shall on each Distribution Date
        instruct the Relevant Trustee to pay or distribute to each
        Securityholder of record on the related Record Date by check mailed to
        such Securityholder at the address of such Holder appearing in the
        Certificate Register or Note Register, as the case may be (or, if DTC,
        its nominee or a Clearing Agency is the relevant Holder, by wire
        transfer of immediately available funds or pursuant to other
        arrangements), the amount to be paid or distributed to such
        Securityholder pursuant to such Holder's Note or Certificate. With
        respect to the final payment upon retirement of a Note or Certificate,
        the Servicer shall on the relevant final Distribution Date instruct the
        Relevant Trustee to pay or distribute the amounts due thereon only upon
        delivery for cancellation of the certificate representing such Note or
        Certificate in accordance with the Indenture or the Trust Agreement, as
        the case may be.

        SECTION 5.07 Reserve Account.

                (a)     In order to assure that certain amounts will be
        available to make required payments to Noteholders, the Seller will,
        pursuant to the Securities Account Control Agreement, establish and
        maintain with the Securities Intermediary a segregated trust account
        (the "Reserve Account") in the name of the Indenture Trustee which will
        include the money and other property deposited and held therein pursuant
        to Sections 5.06(c), 5.06(d) and this Section 5.07. On or prior to the
        Closing Date, the Seller shall deposit an amount equal to the Reserve
        Account Initial Deposit into the Reserve Account. As and to the extent
        set forth in Section 5.06(c) or (d), the Relevant Trustee will deposit
        Available Amounts into the Reserve Account on each Distribution Date as
        provided in the Servicer's Certificate, until the amount on deposit
        therein equals the Specified Reserve Account Balance. On each
        Distribution Date, to the extent that amounts in the Collection

                                       41
<PAGE>   46

        Account and/or Available Amounts, as the case may be, are insufficient
        to fully fund the payments and distributions described in clauses (i)
        through (viii) of Section 5.06(c) or clauses (i) through (vii) of
        Section 5.06(d), the Relevant Trustee will withdraw amounts then on
        deposit in the Reserve Account, up to the amounts of any such
        deficiencies, and deposit such amounts into the Collection Account for
        application pursuant to such clauses. On each Distribution Date, as
        provided in the Servicer's Certificate, the Relevant Trustee will
        release to the Seller any amounts remaining on deposit in the Reserve
        Account in excess of the Specified Reserve Account Balance. Upon the
        payment in full of the Notes under the Indenture, as directed in writing
        by the Servicer, the Relevant Trustee will release to the Seller any
        amounts remaining on deposit in the Reserve Account, and all rights to
        the Reserve Account and all other collateral registered or held therein
        shall revert to the Seller in accordance with the Securities Account
        Control Agreement. Upon any such distribution to the Seller, the Issuer,
        Owner Trustee, Certificateholders, Indenture Trustee and Noteholders
        will have no further rights in, or claims to, such amounts.

                (b)     All amounts held in the Reserve Account shall be
        invested by the Relevant Trustee, as directed in writing by the
        Servicer, in Eligible Investments; provided that if (x) the Servicer
        shall have failed to give investment directions for any funds on deposit
        in the Reserve Account to the Indenture Trustee by 5:00 p.m. Eastern
        Time (or such other time as may be agreed by the Servicer and the
        Indenture Trustee) on any Business Day, or (y) a Default or Event of
        Default shall have occurred and be continuing with respect to the Notes
        but the Notes shall not have been declared due and payable pursuant to
        the Indenture, or (z) the Notes shall have been declared due and payable
        following an Event of Default, but amounts collected or receivable from
        the Trust Estate are being applied pursuant to Section 5.05 of the
        Indenture as if there had not been such a declaration, then the
        Indenture Trustee shall, to the fullest extent practicable, invest and
        reinvest funds in the Reserve Account in one or more Eligible
        Investments specified in clauses (i), (iv) or (vi) of the definition of
        Eligible Investments. All such Eligible Investments shall mature not
        later than the Business Day preceding the next Distribution Date, in
        such manner that such amounts invested shall be available to make the
        required deposits on the Distribution Date; provided that if permitted
        by the Rating Agencies, monies on deposit therein may be invested in
        Eligible Investments that mature later than the Business Day preceding
        the next Distribution Date. The Servicer will not direct the Relevant
        Trustee to make any investment of any funds or to sell any investment
        held in the Reserve Account unless the security interest granted and
        perfected in such account will continue to be perfected in such
        investment or the proceeds of such sale, in either case without any
        further action by any Person, and, in connection with any direction to
        the Relevant Trustee to make any such investment or sale, if requested
        by the Relevant Trustee, the Servicer shall deliver to the Relevant
        Trustee an Opinion of Counsel, acceptable to the Relevant Trustee, to
        such effect. Earnings, if any, on investment of funds in the Reserve
        Account shall be paid to the Seller, and losses and any investment
        expenses shall be charged against the funds on deposit therein. The
        Relevant Trustee shall incur no liability for the selection of
        investments or for losses thereon absent its own negligence or willful
        misfeasance. The Relevant Trustee shall have no liability in respect of
        losses incurred as a result of the liquidation of any investment prior
        to its stated maturity date or the failure of the Servicer to provide
        timely written investment directions.

                                       42
<PAGE>   47

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

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

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

        SECTION 5.08  Yield Supplement Account.

                (a)     In order to assure that sufficient amounts to make
        required distributions of interest to Noteholders will be available, the
        Owner Trustee will, pursuant to the Securities Account Control Agreement
        and the Yield Supplement Agreement, establish and maintain with the
        Securities Intermediary a segregated trust account (the "Yield
        Supplement Account") in the name of the Indenture Trustee which will
        include the money and other property deposited and held therein pursuant
        to the Yield Supplement Agreement and this Section 5.08.

                (b)     On or prior to the Closing Date, the Seller shall make a
        capital contribution to the Trust by depositing an amount equal to the
        Initial Yield Supplement Amount into the Yield Supplement Account
        pursuant to the Yield Supplement Agreement and assign the Lease
        Contracts to the Trust. On each Distribution Date, (i) pursuant to the
        Purchase Agreement, NMAC shall pay to the Servicer (on behalf of the
        Trust) the Lease Payment Deposit with respect to such Distribution Date;
        (ii) the Servicer shall deposit such Lease Payment Deposit into the
        Yield Supplement Account; and (iii) to the extent amounts then on
        deposit in the Yield Supplement Account are sufficient therefor, the
        Relevant Trustee will withdraw amounts then on deposit in the Yield
        Supplement Account in an amount equal to the Yield Supplement Deposit
        with respect to such Distribution Date and deposit such amounts into the
        Collection Account for application pursuant to Section 5.06. On each
        Distribution Date, if the amount on deposit in the Yield Supplement
        Account (after giving effect to all deposits thereto or withdrawals
        therefrom on such Distribution Date)

                                       43
<PAGE>   48

        is greater than the Required Yield Supplement Amount, the Relevant
        Trustee will deposit such excess into the Collection Account for
        distribution by the Relevant Trustee in accordance with the terms of
        Section 5.06(c). Upon payment in full of the Notes under the Indenture,
        as directed in writing by the Servicer, the Indenture Trustee will
        release any amounts remaining on deposit in the Yield Supplement
        Account, and all rights to the Yield Supplement Account and all other
        collateral registered or held therein to the Seller, and neither NMAC,
        the Trust, the Seller, nor the Servicer shall have any further
        obligation to make the Lease Payment Deposit into the Yield Supplement
        Account.

                (c)     All amounts held in the Yield Supplement Account shall
        be invested by the Relevant Trustee, as directed in writing by the
        Servicer, in Eligible Investments; provided that if (x) the Servicer
        shall have failed to give investment directions for any funds on deposit
        in the Yield Supplement Account to the Indenture Trustee by 5:00 p.m.
        Eastern Time (or such other time as may be agreed by the Servicer and
        the Indenture Trustee) on any Business Day, or (y) a Default or Event of
        Default shall have occurred and be continuing with respect to the Notes
        but the Notes shall not have been declared due and payable pursuant to
        the Indenture, or (z) the Notes shall have been declared due and payable
        following an Event of Default, but amounts collected or receivable from
        the Trust Estate are being applied pursuant to Section 5.05 of the
        Indenture as if there had not been such a declaration, then the
        Indenture Trustee shall, to the fullest extent practicable, invest and
        reinvest funds in the Yield Supplement Account in one or more Eligible
        Investments specified in clauses (i), (iv) or (vi) of the definition of
        Eligible Investments. All such Eligible Investments shall mature not
        later than the Business Day preceding the next Distribution Date, in
        such manner that such amounts invested shall be available to make the
        required deposits on the Distribution Date; provided, that if permitted
        by the Rating Agencies, monies on deposit therein may be invested in
        Eligible Investments that mature later than the Business Day preceding
        the next Distribution Date. The Servicer will not direct the Relevant
        Trustee to make any investment of any funds or to sell any investment
        held in the Yield Supplement Account unless the security interest
        granted and perfected in such account will continue to be perfected in
        such investment or the proceeds of such sale, in either case without any
        further action by any Person, and, in connection with any direction to
        the Relevant Trustee to make any such investment or sale, if requested
        by the Relevant Trustee, the Servicer shall deliver to the Relevant
        Trustee an Opinion of Counsel, acceptable to the Relevant Trustee, to
        such effect. Earnings, if any, on investment of funds in the Yield
        Supplement Account shall be deposited in the Collection Account on each
        Distribution Date, and losses and any investment expenses shall be
        charged against the funds on deposit therein. The Relevant Trustee shall
        incur no liability for the selection of investments or for losses
        thereon absent its own negligence or willful misfeasance. The Relevant
        Trustee shall have no liability in respect of losses incurred as a
        result of the liquidation of any investment prior to its stated maturity
        date or the failure of the Servicer to provide timely written investment
        directions.

                (d)     The Trust, the Owner Trustee, the Seller and the
        Indenture Trustee will treat the Yield Supplement Account, all funds
        therein and all net investment income with respect thereto as assets of
        the Trust for federal income tax and all other purposes.

                                       44
<PAGE>   49

                (e)     Pursuant to the Yield Supplement Agreement and the
        Securities Account Control Agreement, the Trust will grant to the
        Indenture Trustee, for the benefit of the Noteholders, a security
        interest in all funds (including Eligible Investments) in the Yield
        Supplement Account (including the Initial Yield Supplement Amount) and
        the proceeds thereof to secure the payment of interest on the Notes, and
        the Indenture Trustee shall have all of the rights of a secured party
        under the UCC with respect thereto. If for any reason the Yield
        Supplement Account is no longer an Eligible Deposit Account, the
        Relevant Trustee shall promptly cause the Yield Supplement Account to be
        moved to another institution or otherwise changed so that the Yield
        Supplement Account becomes an Eligible Deposit Account.

                (f)     Neither the Owner Trustee nor the Indenture Trustee
        shall enter into any subordination or intercreditor agreement with
        respect to the Yield Supplement Account.

        SECTION 5.09 Statements to Certificateholders and Noteholders.

                (a)     On each Distribution Date, the Indenture Trustee shall
        include with each distribution to each Noteholder and the Owner Trustee
        shall include with each distribution to each Certificateholder a
        statement (which statement shall also be provided to each Rating Agency)
        based on information in the Servicer's Certificate furnished pursuant to
        Section 4.08, setting forth for the Collection Period relating to such
        Distribution Date the following information:

                        (i)     the amount of the payment allocable to the
        principal amount of each Class of Notes and to the Certificate Balance;

                        (ii)    the amount of the payment allocable to interest
        on or with respect to each Class of Notes;

                        (iii)   the amount of the distribution allocable to the
        Yield Supplement Deposit, if any, plus reinvestment income, if any, on
        the Yield Supplement Account;

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

                        (v)     the amount of the Base Servicing Fee paid to the
        Servicer with respect to the related Collection Period, the amount of
        any unpaid Base Servicing Fees and the change in such amount from that
        of the prior Distribution Date;

                        (vi)    the Noteholders' Interest Carryover Shortfall,
        the Noteholders' Principal Carryover Shortfall, and the
        Certificateholders' Principal Carryover Shortfall, if any, with respect
        to each Class of Notes and the Certificates, and the change in such
        amounts from the preceding Distribution Date;

                        (vii)   the Outstanding Amount, the Note Factor and the
        Note Pool Factor with respect to each Class of Notes, and the
        Certificate Balance, the Certificate Factor and the Certificate Pool
        Factor with respect to the Certificates, in each case after giving
        effect to all payments in respect of principal on such Distribution
        Date;

                                       45
<PAGE>   50

                        (viii)  the amount of Advances made in respect of the
        Receivables during the related Collection Period and the amount of
        unreimbursed Advances on such Distribution Date;

                        (ix)    the balance of the Reserve Account and the Yield
        Supplement Account on such Distribution Date, after giving effect to
        changes thereto on such Distribution Date and the amount of such
        changes;

                        (x)     the amount of defaults and net losses on the
        Receivables for the related Collection Period; and

                        (xi)    the number of delinquencies on the Receivables
        as a percentage of the number of Receivables.

                (b) Copies of such statements may be obtained by the
        Certificateholders or the Note Owners from the Owner Trustee or the
        Indenture Trustee, as the case may be, by a request in writing. The
        Owner Trustee or the Indenture Trustee, as the case may be, shall
        provide such copies promptly after such requests.

        SECTION 5.10 Net Deposits. So long as NMAC is the Servicer, the Servicer
(in whatever capacity) may make the remittances pursuant to Sections 5.02 and
5.05 above net of amounts to be distributed to the Servicer (in whatever
capacity) pursuant to Section 5.06. Accounts between the Seller and the Servicer
will be adjusted accordingly. Nonetheless, the Servicer shall account for all of
the above described remittances and distributions (except for the Supplemental
Servicing Fee to the extent that the Servicer is entitled to retain such
amounts) in the Servicer's Certificate as if the amounts were deposited and/or
transferred separately.

                                   ARTICLE VI

                                   The Seller

        SECTION 6.01 Representations of Seller. The Seller makes the following
representations on which the Issuer is deemed to have relied in acquiring the
Receivables. The representations speak as of the execution and delivery of this
Agreement and as of the Closing Date, and shall survive the sale of the
Receivables to the Issuer and the pledge thereof to the Indenture Trustee
pursuant to the Indenture.

                (a) Organization and Good Standing. The Seller has been duly
        organized and is validly existing as a corporation in good standing
        under the laws of the State of Delaware, with corporate power and
        authority to own its properties and to conduct its business as such
        properties are currently owned and such business is presently conducted,
        and had at all relevant times, and has, corporate power, authority and
        legal right to acquire and own the Receivables. The location of the
        Seller's chief executive office and principal place of business is
        Torrance, California.

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

                                       46
<PAGE>   51

        shall require such qualifications and where the failure to so qualify
        would have a material adverse effect on the ability of the Seller to
        perform its obligations under this Agreement.

                (c)     Power and Authority. The Seller has the corporate power
        and authority to execute and deliver this Agreement and to carry out its
        terms. The Seller has full power and authority to sell and assign the
        property to be sold and assigned to and deposited as part of the Owner
        Trust Estate, and has duly authorized such sale and assignment to the
        Trust by all necessary corporate action; and the execution, delivery and
        performance of this Agreement has been duly authorized by the Seller by
        all necessary corporate action.

                (d)     Valid Sale; Binding Obligations. This Agreement
        evidences a valid sale, transfer and assignment of the Receivables,
        enforceable against creditors of and purchasers from the Seller (other
        than a good faith purchaser for value in the ordinary course of business
        who takes actual possession of one or more Receivables); and this
        Agreement is a legal, valid and binding obligation of the Seller
        enforceable in accordance with its terms, subject to the effect of
        bankruptcy, insolvency, reorganization, moratorium or other similar laws
        affecting creditors' rights generally and by general equitable
        principles.

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

                (f)     No Proceedings. There are no proceedings or
        investigations pending, or, to the best of the Seller's knowledge,
        threatened, before any court, regulatory body, administrative agency or
        other governmental instrumentality having jurisdiction over the Seller
        or its properties: (i) asserting the invalidity of this Agreement, the
        Trust Agreement, the Indenture, the Securities Account Control
        Agreement, the Yield Supplement Agreement, the Certificates or the
        Notes; (ii) seeking to prevent the issuance of the Certificates or the
        Notes or the consummation of any of the transactions contemplated by
        this Agreement, the Trust Agreement, the Indenture, the Securities
        Account Control Agreement or the Yield Supplement Agreement; (iii)
        seeking any determination or ruling that would materially and adversely
        affect the performance by the Seller of its obligations under, or the
        validity or enforceability of, this Agreement, the Trust Agreement, the
        Indenture, the Securities Account Control Agreement, the Yield
        Supplement Agreement, the Certificates or the Notes; or (iv) relating to
        the Seller and

                                       47
<PAGE>   52

        that would adversely affect the federal or any state income tax
        attributes of the Issuer, the Certificates or the Notes.

        SECTION 6.02 Additional Covenants of the Seller.

                (a)     The Seller agrees with the Certificateholders, the Note
        Owners and each Rating Agency that the Seller shall not issue any
        securities or deposit assets into a trust that issues any securities,
        the issuance of which could reasonably be expected to materially and
        adversely affect the rating of any Class of Notes unless it shall have
        first obtained the written consent of each Rating Agency to the effect
        that such issuance will not materially adversely affect such rating;
        provided that, the issuance of another series of certificates or notes
        pursuant to agreements with terms substantially similar to the terms of
        the Basic Documents shall not be deemed to materially and adversely
        affect the ratings on the Notes. The Seller shall provide a copy of any
        such consent to the Owner Trustee and the Indenture Trustee.

                (b)     The Seller shall not do any of the following (without
        the prior written consent of each Rating Agency (other than Moody's)
        (which consent shall be to the effect that the acts set forth below
        shall not affect materially adversely the rating on any Class of Notes)
        and, upon the Seller's receipt of such written consent from each Rating
        Agency (other than Moody's), the Owner Trustee and the Indenture Trustee
        shall, without any exercise of its own discretion, also provide its
        written consent to the Seller (promptly after the occurrence of any of
        the following, the Seller shall provide notice of such occurrence to
        Moody's, so long as Moody's is then rating any outstanding Notes)):

                        (1)     engage in any business or activity other than
        those set forth in Article Three of the Seller's Certificate of
        Incorporation, as amended;

                        (2)     incur any indebtedness, or assume or guaranty
        any indebtedness of any other entity, other than (A) any indebtedness
        incurred in connection with the issuance of any certificates or notes
        (as defined in the Seller's Certificate of Incorporation), provided that
        any such future indebtedness incurred in connection with the issuance of
        any certificates or notes must be rated at least with the same ratings
        given the outstanding certificates or notes secured or supported by
        assets acquired by the Seller from NMAC by each nationally recognized
        statistical rating organization that has rated such outstanding
        certificates or notes or, prior to the issuing of such future
        indebtedness incurred in connection with such certificates or notes, the
        Seller shall have received confirmation from each nationally recognized
        statistical rating organization that has rated such outstanding
        certificates or notes that the ratings of such outstanding certificates
        or notes will not be adversely affected by the issuance of such future
        indebtedness; and (B) (i) any indebtedness to NMAC or any of its
        Affiliates incurred in connection with the acquisition of receivables,
        which indebtedness shall be fully subordinated (and which shall provide
        for payment only after payment in respect of all outstanding rated debt)
        and nonrecourse against any assets of the Seller other than the assets
        pledged to secure such indebtedness, (ii) such indebtedness does not
        constitute a claim against the Seller in the event the assets pledged to
        secure such indebtedness are insufficient to pay such indebtedness,
        (iii) holders of such indebtedness agree that they have no rights in any

                                       48

<PAGE>   53
        assets of the Seller other than the assets pledged to secure such
        indebtedness, and (iv) to the extent that any holder of such
        indebtedness is deemed to have any interest in any assets of the Seller
        other than the assets pledged to secure such indebtedness, holders of
        such indebtedness agree that their interest is subordinate to claims or
        rights of holders of other indebtedness issued by the Seller, and that
        such agreement constitutes a subordination agreement for purposes of
        Section 510(a) of the Bankruptcy Code.

                        (3)     dissolve or liquidate, in whole or in part,
        consolidate or merge with or into any other entity or convey or transfer
        its properties and assets substantially as an entirety to any entity,
        unless:

                (i)     the entity (if other than the Seller) formed or
        surviving the consolidation or merger or which acquires the properties
        and assets of the Seller is organized and existing under the laws of the
        State of Delaware, expressly assumes the due and punctual payment of all
        obligations of the Seller, including those obligations of the Seller
        under this Agreement and the Basic Documents, and has a Certificate of
        Incorporation containing provisions identical to the provisions of
        Article Three, Article Four and Article Fifteen of the Seller's
        Certificate of Incorporation, as amended; and

                (ii)    immediately after giving effect to the transaction, no
        default or event of default has occurred and is continuing under any
        indebtedness of the Seller or any agreements relating to such
        indebtedness; and

                (iii)   the entity (if other than the Seller) formed or
        surviving the consolidation or merger or which acquires the properties
        and assets of the Seller agrees that (i) it shall maintain its funds or
        assets as identifiable and not commingle its funds or assets with those
        of any direct or ultimate parent of such entity and pay from its assets
        all obligations and indebtedness of any kind incurred by it, (ii) it
        shall maintain bank accounts, corporate records and books of account
        separate from those of any direct or ultimate parent of such entity and
        (iii) the business affairs of such entity will be managed by or under
        the direction of its board of directors and it will conduct its business
        from an office space separate from any direct or ultimate parent of such
        entity; and

                (iv)    each nationally recognized statistical rating
        organization that has rated any issue of certificates or notes secured
        or supported by assets acquired by the Seller from NMAC shall confirm in
        writing that the rating of such certificates or notes shall not be
        adversely affected by such consolidation or merger;

                        (4)     without the affirmative vote of 100% of the
        members of the board of directors of the Seller, institute proceedings
        to be adjudicated bankrupt or insolvent, or consent to the institution
        of bankruptcy or insolvency proceedings against it, or file a petition
        seeking or consent to reorganization or relief under any applicable
        federal or state law relating to bankruptcy, or consent to the
        appointment of a receiver, liquidator, assignee, trustee, sequestrator
        (or other similar official) of the corporation or all or substantially
        all of its property, or make any assignment for the benefit of
        creditors;

                                       49
<PAGE>   54

                        (5)     cease to have an "Independent Director," as
        defined in the Seller's charter;

                        (6)     without the affirmative vote of at least one
        "Independent Director," as defined in the Seller's charter, enter into
        any transactions with the Servicer not in the ordinary course of
        business; or

                        (7)     modify any provision of the Restricted Articles
        of the Seller's Certificate of Incorporation, as amended, in any
        material respect.

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

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

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

        Indemnification under this Section 6.03 shall survive the termination of
this Agreement and shall include reasonable fees and expenses of counsel and
expenses of litigation. If the Seller shall have made any indemnity payment to
any Person entitled thereto pursuant to this Section 6.03 and such Person
thereafter shall collect any of such amounts from others, such Person shall
promptly repay such amounts to the Seller, without interest (except to the
extent the recipient collects interest from others).

        Promptly after receipt by a party indemnified under this Section 6.03
(for purposes of this paragraph, an "Indemnified Party") of notice of the
commencement of any action, such Indemnified Party will, if a claim is to be
made in respect thereof against the Seller under this Section 6.03, notify the
Seller of the commencement thereof. If any such action is brought against any
Indemnified Party under this Section 6.03 and it notifies the Seller of the
commencement thereof, the Seller will assume the defense thereof, with counsel
reasonably satisfactory to such Indemnified Party (who may, unless there is, as
evidenced by an Opinion of Counsel to the Indemnified Party stating that there
is, a conflict of interest, be counsel to the Seller), and the Seller will not
be liable to such Indemnified Party under this Section 6.03 for any

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<PAGE>   55

legal or other expenses subsequently incurred by such Indemnified Party in
connection with the defense thereof, other than reasonable costs of
investigation. The obligations set forth in this Section 6.03 shall survive the
termination of this Agreement or the resignation or removal of the Owner Trustee
or the Indenture Trustee and shall include reasonable fees and expenses of
counsel and expenses of litigation. If the Seller shall have made any indemnity
payments pursuant to this Section 6.03 and the Person to or on behalf of whom
such payments are made thereafter collects any of such amounts from others, such
Person shall promptly repay such amounts to the Seller, without interest (except
to the extent received by such Person).

        SECTION 6.04 Merger or Consolidation of, or Assumption of the
Obligations of, Seller. Subject to Section 6.02, any Person (i) into which the
Seller may be merged or consolidated, (ii) resulting from any merger, conversion
or consolidation to which the Seller shall be a party, (iii) succeeding to the
business of the Seller or (iv) that is a corporation more than 50% of the voting
stock of which is owned directly or indirectly by Nissan, which Person in any of
the foregoing cases executes an agreement of assumption to perform every
obligation of the Seller under this Agreement, will be the successor to the
Seller under this Agreement without the execution or filing of any document or
any further act on the part of any of the parties to this Agreement; provided,
however, that (x) immediately after giving effect to such transaction, no
representation or warranty made pursuant to Section 6.01 shall have been
breached and no Servicer Default, and no event that, after notice or lapse of
time, or both, would become a Servicer Default, shall have occurred and be
continuing, (y) the Seller shall have delivered to the Owner Trustee and the
Indenture Trustee an Officer's Certificate stating that such consolidation,
merger or succession and such agreement or assumption comply with this Section
6.04 and that all conditions precedent, if any, provided for in this Agreement
relating to such transaction have been complied with and (z) the Seller shall
have delivered to the Owner Trustee and the Indenture Trustee an Opinion of
Counsel either (A) stating that, in the opinion of such counsel, based on
customary qualifications and assumptions, all financing statements and
continuation statements and amendments thereto have been executed and filed that
are necessary fully to perfect the interest of the Issuer and the Indenture
Trustee, respectively, in the Receivables, and reciting the details of such
filings, or (B) stating that, in the opinion of such counsel, no such action
shall be necessary to preserve and protect such interest. The Seller shall
provide notice of any merger, consolidation or succession pursuant to this
Section 6.04 to each Rating Agency. Notwithstanding anything herein to the
contrary, the execution of the foregoing agreement of assumption and compliance
with clauses (x), (y) and (z) above shall be conditions to the consummation of
the transactions referred to in clauses (i), (ii), (iii) or (iv) above.

        SECTION 6.05 Limitation on Liability of Seller and Others.

                (a)     Neither the Seller nor any of the directors, officers,
        employees or agents of the Seller shall be under any liability to the
        Trust, the Certificateholders or the Noteholders, except as provided
        under this Agreement, for any action taken or for refraining from the
        taking of any action pursuant to this Agreement or for errors in
        judgment; provided, however, that this provision shall not protect the
        Seller or any such person against any liability that would otherwise be
        imposed by reason of willful misfeasance, bad faith or negligence in the
        performance of duties or by reason of reckless disregard of obligations
        and duties under this Agreement. The Seller and any director, officer,
        employee or agent of the Seller may rely in good faith on the advice of
        counsel or on any document of any

                                       51
<PAGE>   56

        kind, prima facie properly executed and submitted by any Person
        respecting any matters arising under this Agreement.

                (b)     The Seller shall not be under any obligation to appear
        in, prosecute or defend any legal action that shall not be incidental to
        its obligations under this Agreement, and that in its opinion may cause
        it to incur any expense or liability; provided, however, that the
        Servicer may undertake any reasonable action that it may deem necessary
        or desirable in respect of this Agreement and the rights and duties of
        the parties to this Agreement and the interests of the
        Certificateholders and the Noteholders under this Agreement. In such
        event, the legal expenses and costs of such action and any liability
        resulting therefrom shall be expenses, costs and liabilities of the
        Servicer, and the Servicer will not be entitled to be reimbursed
        therefor.

        SECTION 6.06 Seller May Own Certificates or Notes. The Seller and any
Affiliate of the Seller may in its individual or any other capacity become the
owner or pledgee of Certificates or Notes with the same rights as it would have
if it were not the Seller or an Affiliate thereof, except as otherwise provided
in the Basic Documents. Certificates or Notes so owned by or pledged to the
Seller or such controlling or commonly controlled Person shall have an equal and
proportionate benefit under the provisions of this Agreement, without
preference, priority or distinction as among all of the Certificates or the
Notes, as the case may be, except as otherwise expressly provided in the Basic
Documents.

                                   ARTICLE VII

                                  The Servicer

        SECTION 7.01 Representations of Servicer. The Servicer makes the
following representations on which the Issuer is deemed to have relied in
acquiring the Receivables. The representations speak as of the execution and
delivery of this Agreement and as of the Closing Date and shall survive the sale
of the Receivables to the Issuer and the pledge thereof to the Indenture Trustee
pursuant to the Indenture.

                (a)     Organization and Good Standing. The Servicer is duly
        organized and is validly existing as a corporation in good standing
        under the laws of the state of its incorporation, with corporate power
        and authority to own its properties and to conduct its business as such
        properties are currently owned and such business is presently conducted,
        and had at all relevant times, and has, corporate power, authority and
        legal right to acquire, own, sell and service the Receivables and to
        hold the Receivable Files as custodian on behalf of the Trust and the
        Indenture Trustee. The location of the Servicer's chief executive office
        and principal place of business is Torrance, California.

                (b)     Due Qualification. The Servicer is duly qualified to do
        business as a foreign corporation in good standing, and has obtained all
        necessary licenses and approvals in all jurisdictions in which the
        ownership or lease of property or the conduct of its business relating
        to the servicing of the Receivables as required by this Agreement shall
        require

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<PAGE>   57

        such qualifications and where the failure to so qualify would have a
        material adverse effect on the ability of the Servicer to perform its
        obligations under this Agreement.

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

                (d)     Binding Obligation. This Agreement constitutes a legal,
        valid and binding obligation of the Servicer enforceable in accordance
        with its terms, subject to the effect of bankruptcy, insolvency,
        reorganization, moratorium or other similar laws affecting creditors'
        rights generally and by general equitable principles.

                (e)     No Violation. The consummation of the transactions
        contemplated by this Agreement and the fulfillment of the terms hereof
        do not conflict with, result in any breach of any of the terms and
        provisions of, nor constitute (with or without notice or lapse of time)
        a default under, the articles of incorporation or by-laws of the
        Servicer, or any indenture, agreement or other instrument to which the
        Servicer is a party or by which it shall be bound; nor result in the
        creation or imposition of any Lien upon any of its properties pursuant
        to the terms of any such indenture, agreement or other instrument (other
        than the Basic Documents); nor violate any law or any order, rule or
        regulation applicable to the Servicer of any court or of any federal or
        state regulatory body, administrative agency or other governmental
        instrumentality having jurisdiction over the Servicer or its properties;
        which breach, default, conflict, Lien or violation in any case would
        have a material adverse effect on the ability of the Seller to perform
        its obligations under this Agreement.

                (f)     No Proceedings. There are no proceedings or
        investigations pending, or, to the best of the Servicer's knowledge,
        threatened, before any court, regulatory body, administrative agency or
        other governmental instrumentality having jurisdiction over the Servicer
        or its properties: (i) asserting the invalidity of this Agreement, the
        Trust Agreement, the Indenture, the Purchase Agreement, the Certificates
        or the Notes; (ii) seeking to prevent the issuance of the Certificates
        or the Notes or the consummation of any of the transactions contemplated
        by this Agreement, the Trust Agreement, the Indenture or the Purchase
        Agreement; (iii) seeking any determination or ruling that would
        materially and adversely affect the performance by the Servicer of its
        obligations under, or the validity or enforceability of, this Agreement,
        the Trust Agreement, the Indenture, the Purchase Agreement, the
        Certificates or the Notes; or (iv) relating to the Servicer and that
        would adversely affect the federal or any state income tax attributes of
        the Certificates or the Notes.

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

                (a)     The Servicer shall defend, indemnify and hold harmless
        the Owner Trustee, the Indenture Trustee, the Trust, the
        Certificateholders and the Noteholders from

                                       53
<PAGE>   58

        and against any and all costs, expenses, losses, damages, claims and
        liabilities (collectively, "Damages") arising out of or resulting from
        the use, ownership or operation by the Servicer or any of its Affiliates
        (other than the Trust) of a Financed Vehicle.

                (b)     The Servicer shall indemnify, defend and hold harmless
        the Owner Trustee, the Indenture Trustee, the Trust, the
        Certificateholders and the Noteholders from and against any and all
        Damages to the extent that such Damage arose out of, or was imposed
        upon, the Owner Trustee, the Indenture Trustee, the Trust, the
        Certificateholders or the Noteholders through the negligence, willful
        misfeasance or bad faith of the Servicer in the performance of its
        duties under this Agreement or by reason of reckless disregard of its
        obligations and duties under this Agreement.

                (c)     The Servicer shall indemnify, defend and hold harmless
        the Owner Trustee and the Indenture Trustee from and against all Damages
        arising out of or incurred in connection with the acceptance or
        performance of the trusts and duties herein contained, except to the
        extent that such Damage: (i) shall be due to the willful misfeasance,
        bad faith, or negligence (except for errors in judgment) of the Owner
        Trustee or the Indenture Trustee, as the case may be; (ii) relates to
        any tax other than the taxes with respect to which the Seller shall be
        required to indemnify the Owner Trustee or the Indenture Trustee; (iii)
        shall arise from the breach by the Owner Trustee or the Indenture
        Trustee of any of their respective representations or warranties set
        forth in the Basic Documents; (iv) shall be one as to which the Seller
        is required to indemnify the Owner Trustee or the Indenture Trustee and
        as to which such Person has received payment of indemnity from the
        Seller; or (v) shall arise out of or be incurred in connection with the
        performance by the Indenture Trustee of the duties of Successor Servicer
        hereunder.

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

                                       54
<PAGE>   59

        Indemnification under this Section 7.02 by NMAC (or any successor
thereto pursuant to Section 7.03) as Servicer, with respect to the period such
Person was the Servicer, shall survive the termination of such Person as
Servicer or a resignation by such Person as Servicer as well as the termination
of this Agreement and shall include reasonable fees and expenses of counsel and
expenses of litigation. If the Servicer shall have made any indemnity payments
pursuant to this Section 7.02 and the recipient thereafter collects any of such
amounts from others, the recipient shall promptly repay such amounts to the
Servicer, without interest (except to the extent the recipient collects interest
from others).

        SECTION 7.03 Merger or Consolidation of, or Assumption of the
Obligations of, Servicer. Any Person (i) into which the Servicer may be merged
or consolidated, (ii) resulting from any merger, conversion or consolidation to
which the Servicer shall be a party, (iii) succeeding to the business of the
Servicer, or (iv) so long as NMAC acts as Servicer, that is a corporation more
than 50% of the voting stock of which is owned directly or indirectly by Nissan,
which Person in any of the foregoing cases executes an agreement of assumption
to perform every obligation of the Servicer under this Agreement, will be the
successor to the Servicer under this Agreement without the execution or filing
of any paper or any further act on the part of any of the parties to this
Agreement; provided, however, that (x) immediately after giving effect to such
transaction, no Servicer Default, and no event which, after notice or lapse of
time, or both, would become a Servicer Default, shall have occurred and be
continuing, (y) the Servicer shall have delivered to the Owner Trustee and the
Indenture Trustee an Officer's Certificate stating that such consolidation,
merger or succession and such agreement of assumption comply with this Section
7.03 and that all conditions precedent provided for in this Agreement relating
to such transaction have been complied with and (z) the Servicer shall have
delivered to the Owner Trustee and the Indenture Trustee an Opinion of Counsel
either (A) stating that, in the opinion of such counsel, based on customary
qualifications and assumptions, all financing statements and continuation
statements and amendments thereto have been executed and filed that are
necessary fully to preserve and protect the interest of the Issuer and the
Indenture Trustee in the Receivables, and reciting the details of such filings,
or (B) stating that, in the opinion of such counsel, no such action shall be
necessary to perfect such interest. The Servicer shall provide notice of any
merger, consolidation or succession pursuant to this Section 7.03 to each Rating
Agency. Notwithstanding anything herein to the contrary, the execution of the
foregoing agreement of assumption and compliance with clauses (x), (y) and (z)
above shall be conditions to the consummation of the transactions referred to in
clauses (i), (ii), (iii) or (iv) above.

        SECTION 7.04 Limitation on Liability of Servicer and Others.

                (a)     Neither the Servicer nor any of the directors, officers,
        employees or agents of the Servicer shall be under any liability to the
        Trust, the Certificateholders or the Noteholders, except as provided
        under this Agreement, for any action taken or for refraining from the
        taking of any action pursuant to this Agreement or for errors in
        judgment; provided, however, that this provision shall not protect the
        Servicer or any such person against any liability that would otherwise
        be imposed by reason of willful misfeasance, bad faith or negligence in
        the performance of duties or by reason of reckless disregard of
        obligations and duties under this Agreement. The Servicer and any
        director, officer, employee or agent of the Servicer may rely in good
        faith on the advice of counsel

                                       55
<PAGE>   60

        or on any document of any kind, prima facie properly executed and
        submitted by any Person respecting any matters arising under this
        Agreement.

                (b)     Except as provided in this Agreement, the Servicer shall
        not be under any obligation to appear in, prosecute or defend any legal
        action that shall not be incidental to its duties to service the
        Receivables in accordance with this Agreement, and that in its opinion
        may cause it to incur any expense or liability; provided, however, that
        the Servicer may undertake any reasonable action that it may deem
        necessary or desirable in respect of the Basic Documents and the rights
        and duties of the parties to the Basic Documents and the interests of
        the Certificateholders under this Agreement and the Noteholders under
        the Indenture. In such event, the legal expenses and costs of such
        action and any liability resulting therefrom shall be expenses, costs
        and liabilities of the Servicer, and the Servicer will not be entitled
        to be reimbursed therefor.

        SECTION 7.05 NMAC Not To Resign as Servicer. Subject to the provisions
of Section 7.03, NMAC shall not resign from the obligations and duties hereby
imposed on it as Servicer under this Agreement except upon determination that
the performance of its duties under this Agreement shall no longer be
permissible under applicable law. Notice of any such determination permitting
the resignation of NMAC shall be communicated to the Owner Trustee and the
Indenture Trustee at the earliest practicable time (and, if such communication
is not in writing, shall be confirmed in writing at the earliest practicable
time), and any such determination shall be evidenced by an Opinion of Counsel to
such effect delivered to the Owner Trustee and the Indenture Trustee
concurrently with or promptly after such notice. No such resignation shall
become effective until the Indenture Trustee or a Successor Servicer shall (i)
have taken the actions required by Section 8.01 of this Agreement to effect the
termination of the responsibilities and rights of the predecessor Servicer under
this Agreement, including the transfer to the Successor Servicer for
administration by it of all cash amounts that shall at the time be held by the
predecessor Servicer for deposit, or shall thereafter be received with respect
to a Receivable and the delivery of the Receivable Files, and the related
accounts and records maintained by the Servicer, (ii) have assumed the
responsibilities and obligations of NMAC as Servicer under this Agreement in
accordance with Section 8.02 of this Agreement (other than the initial
Servicer's obligation to make Advances), and (iii) become the Administrator
under the Administration Agreement in accordance with Section 8 of such
Agreement.

                                  ARTICLE VIII

                                     Default

        SECTION 8.01 Servicer Default. If any one of the following events (a
"Servicer Default") shall occur and be continuing:

                (a)     any failure by the Servicer (or the Seller, so long as
        NMAC is the Servicer) to deliver to the Relevant Trustee for deposit in
        any of the Accounts any required payment or to direct the Relevant
        Trustee to make any required distributions therefrom, which failure
        continues unremedied for a period of three Business Days after (i)
        receipt by the

                                       56
<PAGE>   61

        Servicer (or the Seller, so long as NMAC is the Servicer) of written
        notice of such failure given by the Owner Trustee or the Indenture
        Trustee, (ii) receipt by the Servicer (or the Seller, so long as NMAC is
        the Servicer), the Owner Trustee or the Indenture Trustee of written
        notice of such failure given by Holders of Notes evidencing not less
        than 25% of the Outstanding Amount, or (iii) discovery of such failure
        by any officer of the Servicer;

                (b)     any failure by the Servicer (or the Seller, as long as
        NMAC is the Servicer) to duly observe or perform in any material respect
        any other covenants or agreements of the Servicer (or the Seller, as
        long as NMAC is the Servicer) set forth in this Agreement (including its
        obligation to purchase Receivables pursuant to Section 4.06), which
        failure shall materially and adversely affect the rights of the
        Certificateholders or the Noteholders and shall continue unremedied for
        a period of 90 days after giving of written notice of the failure to (i)
        the Servicer (or the Seller, as long as NMAC is the Servicer) by the
        Owner Trustee or the Indenture Trustee, or (ii) the Servicer (or the
        Seller, as long as NMAC is the Servicer) and the Owner Trustee or the
        Indenture Trustee by Holders of Notes evidencing not less than 25% of
        the Outstanding Amount or Holders of Certificates evidencing not less
        than 25% of the Certificate Balance; or

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

        then, and in each and every case, so long as the Servicer Default shall
        not have been remedied, either the Indenture Trustee or the Holders of
        Notes evidencing a majority of the Outstanding Amount of the Notes (but
        excluding for purposes of such calculation and action all Notes held or
        beneficially owned by NMAC, NARC II or any of their Affiliates unless
        all of the Notes are held or beneficially owned by NMAC, NARC II or any
        of their Affiliates), acting together as a single Class, by notice then
        given in writing to the Servicer (and to the Indenture Trustee and the
        Owner Trustee if given by the Noteholders) may terminate all of the
        rights and obligations (other than the obligations set forth in Section
        7.02 hereof) of the Servicer under this Agreement. On or after the
        receipt by the Servicer of such written notice, all authority and power
        of the Servicer under this Agreement, whether with respect to the Notes,
        the Certificates or the Receivables or otherwise, shall, without further
        action, pass to and be vested in the Indenture Trustee or such Successor
        Servicer as may be appointed under Section 8.02; and, without
        limitation, the Indenture Trustee and the Owner Trustee are hereby
        authorized and empowered to execute and deliver, for the benefit of the
        predecessor Servicer, as attorney-in-fact or otherwise, any and all
        documents and other instruments, and to do or accomplish all other acts
        or things necessary or appropriate to effect the purposes of such notice
        of termination, whether to complete the transfer and endorsement of the
        Receivables and related documents, or otherwise. The predecessor
        Servicer shall cooperate with the Successor Servicer and the Owner
        Trustee in effecting the termination of the responsibilities and rights
        of the predecessor Servicer under this Agreement, including, without
        limitation, the transfer to the Successor Servicer for administration by
        it of all cash amounts that shall at the time be held by the predecessor
        Servicer for deposit, or have been deposited by the predecessor
        Servicer, in the Accounts or thereafter received with respect to the
        Receivables that shall at that time be held by the predecessor Servicer
        and the delivery of the Receivables Files and the related accounts and
        records maintained by the predecessor Servicer. All reasonable costs and
        expenses (including

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        attorneys' fees) incurred in connection with transferring the Receivable
        Files to the Successor Servicer and amending this Agreement to reflect
        such succession as Servicer pursuant to this Section 8.01 shall be paid
        by the predecessor Servicer upon presentation of reasonable
        documentation of such costs and expenses. Notwithstanding the foregoing,
        in the event the predecessor Servicer is the Indenture Trustee, the
        original Servicer hereunder shall reimburse the Indenture Trustee for
        all reasonable costs and expenses as described in the immediately
        preceding sentence. Upon receipt of notice of the occurrence of a
        Servicer Default, the Indenture Trustee shall give notice thereof to the
        Rating Agencies.

        SECTION 8.02 Appointment of Successor.

                (a)     Upon the Servicer's receipt of notice of termination
        pursuant to Section 8.01 or the Servicer's resignation in accordance
        with the terms of this Agreement, the predecessor Servicer shall
        continue to perform its functions as Servicer under this Agreement, in
        the case of termination, only until the date specified in such
        termination notice or, if no such date is specified in a notice of
        termination, until receipt of such notice and, in the case of
        resignation, until the earlier of (i) the date 45 days from the delivery
        to the Owner Trustee and the Indenture Trustee of written notice of such
        resignation (or written confirmation of such notice) in accordance with
        the terms of this Agreement and (ii) the date upon which the predecessor
        Servicer shall become unable to act as Servicer, as specified in the
        notice of resignation and accompanying Opinion of Counsel. In the event
        of the Servicer's resignation or termination hereunder, the Indenture
        Trustee shall appoint a Successor Servicer, and the Successor Servicer
        shall accept its appointment (including its appointment as Administrator
        under the Administration Agreement as set forth in Section 8.02(b)) by a
        written assumption in form acceptable to the Owner Trustee and the
        Indenture Trustee. If a Successor Servicer has not been appointed at the
        time when the predecessor Servicer has ceased to act as Servicer in
        accordance with this Section 8.02, the Indenture Trustee without further
        action shall automatically be appointed the Successor Servicer and the
        Indenture Trustee shall be entitled to the Total Servicing Fee.
        Notwithstanding the above, the Indenture Trustee shall, if it shall be
        legally unable so to act, appoint or petition a court of competent
        jurisdiction to appoint, and the predecessor Servicer, if no successor
        Servicer has been appointed at the time the predecessor Servicer has
        ceased to act, may petition a court of competent jurisdiction to appoint
        any established institution having a net worth of not less than
        $100,000,000 and whose regular business shall include the servicing of
        automobile and/or light-duty truck receivables, as the successor to the
        Servicer under this Agreement.

                (b)     Upon appointment, the Successor Servicer (including the
        Indenture Trustee acting as Successor Servicer) shall (i) be the
        successor in all respects to the predecessor Servicer and shall be
        subject to all the responsibilities, duties and liabilities arising
        thereafter relating thereto placed on the predecessor Servicer (except
        the initial Servicer's obligation to make Advances) and shall be
        entitled, subject to the arrangements referred to in paragraph (c)
        below, to the servicing fee and all the rights granted to the
        predecessor Servicer by the terms and provisions of this Agreement and
        (ii) become the Administrator under the Administration Agreement in
        accordance with Section 8 of such Agreement.

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                (c)     In connection with such appointment, the Issuer may make
        such arrangements for the compensation of such Successor Servicer out of
        payments on Receivables as it and such Successor Servicer shall agree;
        provided, however, that no such compensation shall be in excess of that
        permitted the predecessor Servicer under this Agreement. The Issuer, the
        Indenture Trustee and such Successor Servicer shall take such action,
        consistent with this Agreement, as shall be necessary to effectuate any
        such succession.

        SECTION 8.03 Repayment of Advances. If the Servicer shall resign or be
terminated, the Servicer shall continue to be entitled to receive, to the extent
of available funds, reimbursement for Outstanding Advances pursuant to Sections
5.03 and 5.04 with respect to all Advances previously made thereby.

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

        SECTION 8.05 Waiver of Past Defaults. The Holders of Notes evidencing a
majority of the Outstanding Amount of the Notes, or, in the case of any Servicer
Default which does not adversely affect the Indenture Trustee or the
Noteholders, the Holders of Certificates evidencing a majority of the
Certificate Balance, in each case excluding for purposes of such calculation and
action all Securities held or beneficially owned by NMAC, NARC II or any of
their Affiliates (unless all of the Notes or the Certificates, as the case may
be, are held by NMAC, NARC II and their Affiliates), may, on behalf of all the
Noteholders and the Certificateholders, waive in writing any default by the
Servicer in the performance of its obligations hereunder and its consequences,
except a default in making any required deposits to or payments from the
Collection Account in accordance with this Agreement. Upon any such waiver of a
past default, such default shall cease to exist, and any Servicer Default
arising therefrom shall be deemed to have been remedied for every purpose of
this Agreement. No such waiver shall extend to any subsequent or other default
or impair any right consequent thereto.

                                   ARTICLE IX

                       Termination; Release of Receivables

        SECTION 9.01  Optional Purchase of All Receivables.

                (a)     On each Distribution Date following the last day of a
        Collection Period as of which the Pool Balance shall be less than or
        equal to the Optional Purchase Percentage multiplied by the Original
        Pool Balance, the Servicer or any successor to the Servicer shall have
        the option to purchase the corpus of the Owner Trust Estate (whether or
        not such assets then comprise all or a portion of the Trust Estate) for
        an amount equal to the Optional Purchase Price. To exercise such option,
        the Servicer or any successor to the Servicer shall notify the Owner
        Trustee and the Indenture Trustee of its intention to do so in writing,
        no later than the tenth day of the month preceding the month in which
        the Distribution Date as of which such purchase is to be effected and
        shall, on or before the Distribution Date on which such purchase is to
        occur, deposit pursuant to Section 5.05 in

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        the Collection Account an amount equal to the Optional Purchase Price,
        and shall succeed to all interests in and to the Trust Estate and the
        Owner Trust Estate; provided, however, that the Servicer shall not
        effect any such purchase so long as the rating of NMAC by Moody's, or if
        NMAC shall then be unrated by Moody's, then the rating of Nissan Capital
        of America, Inc., is less then "Ba1" by Moody's, unless the Owner
        Trustee and the Indenture Trustee shall have received an Opinion of
        Counsel to the effect that such purchase shall not constitute a
        fraudulent conveyance, subject to such assumptions as to factual matters
        as may be contained therein. Amounts so deposited will be paid and
        distributed as set forth in Section 5.06 of this Agreement. Upon such
        deposit of the amount necessary to purchase the corpus of the Owner
        Trust Estate, the Servicer shall for all purposes of this Agreement be
        deemed to have released all claims for reimbursement of Outstanding
        Advances made in respect of the Receivables.

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

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

        SECTION 9.02 Release of Receivables.

                (a)     Upon repurchase of any Receivable by the Seller pursuant
        to Section 3.02 or by the Servicer pursuant to Section 4.06 or Section
        9.01, the Issuer and the Indenture Trustee on behalf of the Noteholders,
        shall, without further action, be deemed to transfer, assign, set-over
        and otherwise convey to the Seller or the Servicer, as the case may be,
        all right, title and interest of the Issuer in, to and under such
        repurchased Receivable, all monies due or to become due with respect
        thereto and all proceeds thereof and the other property conveyed to the
        Issuer hereunder pursuant to Section 2.01 with respect to such
        Receivable, and all security and any documents relating thereto, such
        assignment being an assignment outright and not for security; and the
        Seller or the Servicer, as applicable, shall thereupon own each such
        Receivable, and all such related security and documents, free of any
        further obligation to the Issuer, the Owner Trustee, the
        Certificateholders, the Indenture Trustee or the Noteholders with
        respect thereto.

                (b)     The Issuer and Indenture Trustee shall execute such
        documents and instruments of transfer and assignment and take such other
        actions as shall be reasonably requested by the Seller or the Servicer,
        as the case may be, to effect the conveyance of such Receivable pursuant
        to Sections 3.02, 4.06 and 9.02.

        If in any enforcement suit or legal proceeding it is held that the
Seller or the Servicer may not enforce a repurchased Receivable on the ground
that it is not a real party in interest or a holder entitled to enforce the
Receivable, the Issuer, and the Indenture Trustee on behalf of the Noteholders,
shall, at the written direction and expense of the Seller or Servicer, as the
case may be, take such reasonable steps as the Seller or the Servicer deems
necessary to enforce the

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Receivable, including bringing suit in the name or names of the Issuer, the
Certificateholders or the Noteholders.

        SECTION 9.03  Termination.

                (a)     The respective obligations of the Seller, the Servicer,
        NMAC (so long as NMAC has rights or obligations hereunder), the Owner
        Trustee, and the Indenture Trustee, as the case may be, pursuant to this
        Agreement shall terminate upon the earliest of (i) the maturity or other
        liquidation of the last Receivable and the final disposition of all
        amounts received upon liquidation of any remaining Receivables, or (ii)
        the election by the Servicer to purchase the corpus of the Trust as
        described in Section 9.01 and the payment or distribution to
        Securityholders of all amounts required to be paid to them under the
        Indenture or the Trust Agreement, as the case may be.

                (b)     Notice of any such termination under this Section 9.03
        shall be given by the Indenture Trustee or the Owner Trustee to each
        Securityholder of record as specified in the Indenture or the Trust
        Agreement, as appropriate.

                                    ARTICLE X

                                  Miscellaneous

        SECTION 10.01        Amendment.

                (a)     This Agreement may be amended by the Seller, the
        Servicer and the Issuer, with the consent of the Indenture Trustee, but
        without the consent of any of the Noteholders or the Certificateholders,

                        (1)     to cure any ambiguity, correct or supplement any
                provision herein that may be inconsistent with any other
                provision herein, or make any other provisions with respect to
                matters or questions arising hereunder that are not inconsistent
                with the provisions herein; provided that (i) the amendment will
                not materially and adversely affect the interest of any
                Noteholder or Certificateholder and (ii) the Servicer shall have
                delivered an Officer's Certificate to the Indenture Trustee and
                the Owner Trustee stating that such amendment will not
                materially and adversely affect the interest of any Noteholder
                or Certificateholder; and

                        (2)     to change the formula for determining the
                required amount for the Specified Reserve Account Balance upon
                (i) confirmation from each Rating Agency that such amendment
                will not result in the qualification, reduction or withdrawal of
                any rating it currently assigns to any Class of Notes, and (ii)
                delivery by the Servicer to the Indenture Trustee and the Owner
                Trustee of an Officer's Certificate stating that such amendment
                will not materially and adversely affect the interest of any
                Securityholder.

        An amendment will be deemed not to materially and adversely affect the
interests of any Noteholder or Certificateholder of any Class if (x) the
amendment does not adversely affect the Trust's status as a partnership (or, for
any period during which there is not more than one

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beneficial owner of a Certificate, the Trust's status as an entity that is
disregarded as an entity separate from the Certificateholder) for federal income
tax purposes, (y) each Rating Agency confirms that that amendment will not
result in a reduction or withdrawal of its rating on the Notes of that Class,
and (z) the Servicer has delivered the Officer's Certificate described in this
Section 10.01(a).

                (b)     This Agreement may also be amended from time to time by
        the Seller, the Servicer and the Issuer, with the consent of the
        Indenture Trustee and the consent of:

                        (1)     the Holders of Notes evidencing a majority of
                the Outstanding Amount of the Notes; or

                        (2)     in the case of any amendment that does not
                adversely affect the Indenture Trustee or the Noteholders, the
                Holders of the Certificates evidencing a majority of the
                outstanding Certificate Balance (but excluding for purposes of
                calculation and action all Certificates held by the Seller, the
                Servicer or any of their Affiliates, unless all of the
                Certificates are held by the Seller, the Servicer or any of
                their Affiliates)

for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Agreement or of modifying in any
manner the rights of those Noteholders or Certificateholders; provided, however,
that no amendment shall:

                (x) increase or reduce in any manner the amount of, or
                accelerate or delay the timing of, collections of payments on
                the Receivables or distributions that are required to be made
                for the benefit of those Noteholders or Certificateholders or
                change the Interest Rate or the Specified Reserve Account
                Balance (except as described above under clause (2) of
                subsection (a) above) without the consent of each "adversely
                affected" Noteholder or Certificateholder; or

                (y) reduce the aforesaid percentage of the Outstanding Amount of
                the Notes or Certificate Balance of the Certificates which is
                required to consent to any amendment, without the consent of the
                Holders of all the then outstanding Notes or Certificates.

         An amendment referred to in clause (x) above will be deemed not to
"adversely affect" a Noteholder of any Class only if each Rating Agency confirms
that that amendment will not result in a reduction or withdrawal of its rating
on the Notes of that Class. In connection with any amendment referred to in
clause (x) above, the Servicer shall deliver an Officer's Certificate to the
Indenture Trustee and the Owner Trustee stating that those Noteholders and
Certificateholders whose consents were not obtained were not adversely affected
by such amendment.

        Promptly after the execution of any such amendment or consent, the Owner
Trustee shall furnish written notification of the substance of such amendment or
consent to each Certificateholder, the Indenture Trustee and each of the Rating
Agencies.

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        It shall not be necessary for the consent of the Certificateholders or
Noteholders pursuant to this Section 10.01 to approve the particular form of any
proposed amendment or consent, but it shall be sufficient if such consent shall
approve the substance thereof.

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

        SECTION 10.02 Protection of Title to Trust.

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

                (b)     The Seller and the Servicer shall notify the Owner
        Trustee and the Indenture Trustee within 30 days after any change of its
        name, identity or corporate structure in any manner that would, could or
        might make any financing statement or continuation statement filed in
        accordance with paragraph (a) above seriously misleading within the
        meaning of Section 9-402(7) of the UCC, and shall promptly file
        appropriate amendments to all previously filed financing statements or
        continuation statements.

                (c)     Each of the Seller and the Servicer shall notify the
        Owner Trustee and the Indenture Trustee of any relocation of its
        principal executive office within 30 days after such relocation, if, as
        a result of such relocation, the applicable provisions of the UCC would
        require the filing of any amendment of any previously filed financing or
        continuation statement or of any new financing statement and shall
        promptly file any such amendment or new financing statement. The
        Servicer shall at all times maintain each office from which it shall
        service Receivables, and its principal executive office, within the
        United States of America.

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

                (e)     The Servicer shall maintain its computer systems so
        that, from and after the time of sale under this Agreement of the
        Receivables to the Trust, the Servicer's master

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<PAGE>   68

        computer records that refer to any Receivable shall indicate clearly the
        interest of the Issuer and the Indenture Trustee in such Receivable and
        that such Receivable is owned by the Issuer and has been pledged to the
        Indenture Trustee. Indication of these respective interests in a
        Receivable shall be deleted from or modified on the Servicer's computer
        systems when, and only when, the related Receivable shall have become a
        Liquidated Receivable or been repurchased.

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

                (g)     Upon receipt of a written request from the Owner Trustee
        or the Indenture Trustee, which request shall be made no more frequently
        than annually, the Servicer shall furnish to the Owner Trustee or the
        Indenture Trustee, as the case may be, within 20 Business Days after
        receipt of such request, a list of all Receivables (by contract number
        and name of Obligor) then held as part of the Trust, together with a
        reconciliation of the list of Receivables attached hereto as Schedule A
        and to each of the Servicer's Certificates furnished before such request
        indicating removal of Receivables from the Trust. The Servicer shall
        permit the Indenture Trustee and its agents at any time during normal
        business hours upon reasonable prior notice to inspect, audit and make
        copies of and abstracts from the Servicer's records regarding any
        Receivable.

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

                (A)     upon the execution and delivery of this Agreement and of
        each amendment hereto, an Opinion of Counsel, based on customary
        assumptions and qualifications, stating that, in the opinion of such
        counsel, either (A) all financing statements and continuation statements
        have been executed and filed that are necessary to perfect the interest
        of the Trust and the Indenture Trustee in the Receivables, and reciting
        the details of such filings or referring to prior Opinions of Counsel in
        which such details are given, or (B) no such action shall be necessary
        to preserve and protect such interest; and

                (B)     if requested by the Indenture Trustee or the Owner
        Trustee, not more frequently than annually, an Opinion of Counsel, dated
        as of a date during such 90-day period, either (A) stating that, in the
        opinion of such counsel, based on customary assumptions and
        qualifications, all financing statements and continuation statements
        have been executed and filed that are necessary to perfect the interest
        of the Trust and the Indenture Trustee in the Receivables, and reciting
        the details of such filings or referring to prior Opinions of Counsel in
        which such details are given, or (B) no such action shall be necessary
        to preserve and protect such interest.

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                (i)     Each Opinion of Counsel referred to in clause (h)(A) or
        (h)(B) above shall specify any action necessary (as of the date of such
        Opinion of Counsel) to be taken in the following year to preserve and
        protect such interest.

        SECTION 10.03 Notices. All demands, notices, communications and
instructions upon or to the Seller, the Servicer, the Owner Trustee, the
Indenture Trustee or the Rating Agencies under this Agreement shall be in
writing, personally delivered or mailed by certified mail, return receipt
requested, and shall be deemed to have been duly given upon receipt (a) in the
case of the Seller, to Nissan Auto Receivables Corporation II, 990 West 190th
Street, Torrance, California 90502, Attention of Secretary, (b) in the case of
the Servicer, to Nissan Motor Acceptance Corporation, 990 West 190th Street,
Torrance, California 90502, Attention of Secretary, (c) in the case of the
Issuer or the Owner Trustee, to Nissan Auto Receivables 2001-A Owner Trust, c/o
Wilmington Trust Company, Rodney Square North, 1100 North Market Street,
Wilmington, Delaware 19890, Attention: Nissan Auto Receivables 2001-A Owner
Trust, (d) in the case of the Indenture Trustee, at the Corporate Trust Office,
(e) in the case of Moody's, to Moody's Investors Service, Inc., ABS Monitoring
Department, 99 Church Street, New York, New York 10007, and (f) in the case of
Standard & Poor's, to Standard & Poor's Ratings Services, 55 Water Street, New
York, New York 10041-0003, Attention: Asset Backed Surveillance Department; or,
as to each of the foregoing, at such other address as shall be designated by
written notice to the other parties.

        SECTION 10.04 Assignment by the Seller or the Servicer. Notwithstanding
anything to the contrary contained herein, except as provided in Sections 6.04
and 7.03 of this Agreement and as provided in the provisions of this Agreement
concerning the resignation or termination of the Servicer, this Agreement may
not be assigned by the Seller or the Servicer without the prior written consent
of the Indenture Trustee, the Owner Trustee, the Holders of Notes evidencing not
less than 66 2/3% of the Outstanding Amount and the Holders of Certificates
evidencing not less than 66 2/3% of the Certificate Balance.

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

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

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

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

        SECTION 10.09 Governing Law. This Agreement shall be construed in
accordance with the laws of the State of New York, without reference to its
conflict of law provisions (other than Section 5-1401 of the General Obligations
Law of the State of New York), and the obligations, rights and remedies of the
parties hereunder shall be determined in accordance with such laws.

        SECTION 10.10 Assignment by Issuer. The Seller hereby acknowledges and
consents to any mortgage, pledge, assignment and grant of a security interest by
the Issuer to the Indenture Trustee pursuant to the Indenture for the benefit of
the Noteholders of all right, title and interest of the Issuer in, to and under
the Receivables and the related property acquired hereunder and/or the
assignment of any or all of the Issuer's rights and obligations hereunder to the
Indenture Trustee.

        SECTION 10.11 Nonpetition Covenants.

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

                (b)     Notwithstanding any prior termination of this Agreement,
        each of the Servicer and the Owner Trustee (not in its individual
        capacity but solely as Owner Trustee), prior to the date which is one
        year and one day after the Notes are paid in full, covenants and agrees
        that it will not at any time file, join in any filing of, or cooperate
        with or encourage others to file any bankruptcy, reorganization
        arrangement, insolvency or liquidation proceeding or other proceedings
        against the Seller under any federal or state bankruptcy, insolvency or
        similar law, appointing a receiver, liquidator, assignee, trustee,
        custodian, sequestrator or other similar official of the Seller or any
        substantial part of its property, or ordering the winding up or
        liquidation of the affairs of the Seller.

        SECTION 10.12 Limitation of Liability of Owner Trustee and Indenture
Trustee. Notwithstanding anything contained herein to the contrary, this
Agreement has been countersigned by Wilmington Trust Company, not in its
individual capacity, but solely in its capacity as Owner Trustee of the Issuer,
and by Wells Fargo Bank Minnesota, National Association, not in its individual
capacity, but solely in its capacity as Indenture Trustee under the Indenture.
In no event shall Wilmington Trust Company or Wells Fargo Bank Minnesota,
National Association have any liability for the representations, warranties,
covenants, agreements or other obligations of the Issuer hereunder or in any of
the certificates, notices or agreements delivered by the Seller or the Servicer,
or prepared by the Seller or the Servicer for

                                       66
<PAGE>   71

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

                                       67
<PAGE>   72

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

                             NISSAN AUTO RECEIVABLES 2001-A OWNER TRUST

                             By: WILMINGTON TRUST COMPANY,
                             not in its individual capacity but solely as
                             Owner Trustee on behalf of the Trust

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

                             NISSAN AUTO RECEIVABLES CORPORATION II, as Seller

                             By:   /s/  Joji Tagawa
                                ---------------------------------------------
                             Name:   Joji Tagawa
                             Title:  Treasurer

                             NISSAN MOTOR ACCEPTANCE CORPORATION,
                             individually and as Servicer

                             By:   /s/  Katsumi Ishii
                                ---------------------------------------------
                             Name:    Katsumi Ishii
                             Title:   President

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

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

By:   /s/    Marianna C. Stershic
   ----------------------------------
Name:        Marianna C. Stershic
Title:       Vice-President

                                      S-1
<PAGE>   73

                                   SCHEDULE A

                             SCHEDULE OF RECEIVABLES

                    (Delivered to the Trust on CD-ROM on the Closing Date)

                                      A-1
<PAGE>   74

                                   SCHEDULE B

                        LOCATION OF THE RECEIVABLE FILES

1.      NISSAN MOTOR ACCEPTANCE CORPORATION
        2901 Kinwest Parkway
        Irving, Texas  75063

2.      NISSAN MOTOR ACCEPTANCE CORPORATION
        990 W. 190th Street
        Torrance, California  90502

3.      IRON MOUNTAIN, INC.
        1235 N. Union Bower
        Irving, Texas  75061

                                      B-1
<PAGE>   75

                                   SCHEDULE C

                           SCHEDULE OF LEASE CONTRACTS

                    (Delivered to the Trust on CD-ROM on the Closing Date)

                                      B-2
<PAGE>   76

                                    EXHIBIT A

                       FORM OF YIELD SUPPLEMENT AGREEMENT<PAGE>   1
                                                                     EXHIBIT 4.2

                                    INDENTURE

                   NISSAN AUTO RECEIVABLES 2001-A OWNER TRUST

                                    as Issuer

                                       and

                WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION

                              as Indenture Trustee

                          Dated as of February 1, 2001

<PAGE>   2

                               TABLE OF CONTENTS

                                    ARTICLE I

                   DEFINITIONS AND INCORPORATION BY REFERENCE
<TABLE>
<CAPTION>
                                                                                          Page
                                                                                          ----
<S>                   <C>                                                                 <C>
SECTION 1.01          Definitions...........................................................2
SECTION 1.02          Usage of Terms........................................................8
SECTION 1.03          Incorporation by Reference of Trust Indenture Act.....................8

                                   ARTICLE II

                                    THE NOTES

SECTION 2.01          Form..................................................................8
SECTION 2.02          Execution, Authentication and Delivery................................9
SECTION 2.03          Temporary Notes.......................................................9
SECTION 2.04          Registration; Registration of Transfer and Exchange..................10
SECTION 2.05          Mutilated, Destroyed, Lost or Stolen Notes...........................11
SECTION 2.06          Persons Deemed Owners................................................11
SECTION 2.07          Payments of Principal and Interest...................................11
SECTION 2.08          Cancellation.........................................................12
SECTION 2.09          Release of Collateral................................................12
SECTION 2.10          Book-Entry Notes.....................................................13
SECTION 2.11          Notices to Clearing Agency...........................................13
SECTION 2.12          Definitive Notes.....................................................13
SECTION 2.13          Tax Treatment........................................................14

                                   ARTICLE III

                                    COVENANTS

SECTION 3.01          Payment of Principal and Interest....................................14
SECTION 3.02          Maintenance of Office or Agency......................................15
SECTION 3.03          Money for Payments To Be Held in Trust...............................15
SECTION 3.04          Existence............................................................17
SECTION 3.05          Protection of Trust Estate...........................................17
SECTION 3.06          Opinions as to Trust Estate..........................................17
SECTION 3.07          Performance of Obligations; Servicing of Receivables.................18
SECTION 3.08          Negative Covenants...................................................20
SECTION 3.09          Annual Statement as to Compliance....................................20
SECTION 3.10          Issuer May Consolidate, etc., Only on Certain Terms..................21
SECTION 3.11          Successor or Transferee..............................................22
SECTION 3.12          No Other Business....................................................23
SECTION 3.13          No Borrowing.........................................................23
SECTION 3.14          Servicer's Notice Obligations........................................23
SECTION 3.15          Guarantees, Loans, Advances and Other Liabilities....................23

</TABLE>

                                      -i-

<PAGE>   3
                               TABLE OF CONTENTS
                                  (CONTINUED)

<TABLE>
<CAPTION>
                                                                                          Page
                                                                                          ----
<S>                   <C>                                                                 <C>
SECTION 3.16          Capital Expenditures.................................................23
SECTION 3.17          Removal of Administrator.............................................23
SECTION 3.18          Restricted Payments..................................................23
SECTION 3.19          Notice of Events of Default..........................................24
SECTION 3.20          Further Instruments and Actions......................................24

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

SECTION 4.01          Satisfaction and Discharge of Indenture..............................24
SECTION 4.02          Application of Trust Money...........................................25
SECTION 4.03          Repayment of Moneys Held by Paying Agent.............................25

                                    ARTICLE V

                                    REMEDIES

SECTION 5.01          Events of Default....................................................25
SECTION 5.02          Acceleration of Maturity; Rescission and Annulment...................26
SECTION 5.03          Collection of Indebtedness and Suits for Enforcement by Indenture
                      Trustee..............................................................27
SECTION 5.04          Remedies; Priorities.................................................29
SECTION 5.05          Optional Preservation of the Receivables.............................30
SECTION 5.06          Limitation of Suits..................................................31
SECTION 5.07          Unconditional Rights of Noteholders To Receive Principal and
                      Interest.............................................................31
SECTION 5.08          Restoration of Rights and Remedies...................................32
SECTION 5.09          Rights and Remedies Cumulative.......................................32
SECTION 5.10          Delay or Omission Not a Waiver.......................................32
SECTION 5.11          Control by Noteholders...............................................32
SECTION 5.12          Waiver of Past Defaults..............................................33
SECTION 5.13          Undertaking for Costs................................................33
SECTION 5.14          Waiver of Stay or Extension Laws.....................................33
SECTION 5.15          Action on Notes......................................................34
SECTION 5.16          Performance and Enforcement of Certain Obligations...................34

                                   ARTICLE VI

                              THE INDENTURE TRUSTEE

SECTION 6.01          Duties of Indenture Trustee..........................................34
SECTION 6.02          Rights of Indenture Trustee..........................................36
SECTION 6.03          Individual Rights of Indenture Trustee...............................37
SECTION 6.04          Indenture Trustee's Disclaimer.......................................37

</TABLE>

                                      -ii-
<PAGE>   4

                               TABLE OF CONTENTS
                                  (CONTINUED)

<TABLE>
<CAPTION>
                                                                                          Page
                                                                                          ----
<S>                   <C>                                                                 <C>
SECTION 6.05          Notice of Defaults...................................................38
SECTION 6.06          Reports by Indenture Trustee to Holders..............................38
SECTION 6.07          Compensation and Indemnity...........................................38
SECTION 6.08          Replacement of Indenture Trustee.....................................39
SECTION 6.09          Successor Indenture Trustee by Merger................................40
SECTION 6.10          Appointment of Co-Indenture Trustee or Separate Indenture Trustee....40
SECTION 6.11          Eligibility; Disqualification........................................41
SECTION 6.12          Preferential Collection of Claims Against Issuer.....................41
SECTION 6.13          Acknowledgement by Indenture Trustee of its Obligations Under the
                      Sale and Servicing Agreement.........................................41

                                   ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

SECTION 7.01          Note Registrar To Furnish Names and Addresses of Noteholders.........42
SECTION 7.02          Preservation of Information; Communications to Noteholders...........42
SECTION 7.03          Reports by Issuer....................................................43
SECTION 7.04          Reports by Indenture Trustee.........................................43

                                  ARTICLE VIII

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

SECTION 8.01          Collection of Money..................................................43
SECTION 8.02          Accounts.............................................................44
SECTION 8.03          General Provisions Regarding Accounts................................44
SECTION 8.04          Release of Trust Estate..............................................46
SECTION 8.05          Release of Receivables Upon Purchase by the Seller or the Servicer...47
SECTION 8.06          Opinion of Counsel...................................................47

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

SECTION 9.01          Supplemental Indentures Without Consent of Noteholders...............47
SECTION 9.02          Supplemental Indentures with Consent of Noteholders..................48
SECTION 9.03          Execution of Supplemental Indentures.................................50
SECTION 9.04          Effect of Supplemental Indenture.....................................50
SECTION 9.05          Conformity with Trust Indenture Act..................................50
SECTION 9.06          Reference in Notes to Supplemental Indentures........................50

</TABLE>

                                     -iii-

<PAGE>   5

                               TABLE OF CONTENTS
                                  (CONTINUED)

<TABLE>
<CAPTION>
                                                                                          Page
                                                                                          ----
<S>                   <C>                                                                 <C>
                                    ARTICLE X

                                     RELEASE

SECTION 10.01         Optional Purchase of All Receivables.................................50

                                   ARTICLE XI

                                  MISCELLANEOUS

SECTION 11.01         Compliance Certificates and Opinions, etc............................51
SECTION 11.02         Form of Documents Delivered to Indenture Trustee.....................52
SECTION 11.03         Acts of Noteholders..................................................53
SECTION 11.04         Notices to Indenture Trustee, Issuer and Rating Agencies.............54
SECTION 11.05         Notices to Noteholders; Waiver.......................................54
SECTION 11.06         Alternate Payment and Notice Provisions..............................55
SECTION 11.07         Conflict with Trust Indenture Act....................................55
SECTION 11.08         Effect of Headings and Table of Contents.............................55
SECTION 11.09         Successors and Assigns...............................................55
SECTION 11.10         Severability.........................................................55
SECTION 11.11         Benefits of Indenture................................................55
SECTION 11.12         Governing Law........................................................56
SECTION 11.13         Counterparts.........................................................56
SECTION 11.14         Recording of Indenture...............................................56
SECTION 11.15         Trust Obligation.....................................................56
SECTION 11.16         No Petition..........................................................56
SECTION 11.17         Inspection...........................................................56

</TABLE>

EXHIBIT A      FORM OF CLASS A-1 NOTE, CLASS A-2 NOTE, CLASS A-3 NOTE AND
               LASS A-4 NOTE

                                      -iv-

<PAGE>   6

                              CROSS-REFERENCE TABLE
                         (not a part of this Indenture)
<TABLE>
<CAPTION>
   TIA                                                                               Indenture
 Section                                                                              Section
 -------                                                                             ----------
<S>                                                                                  <C>
(Section)310(a) (1).......................................................................6.11
      (a) (2).............................................................................6.11
      (a) (3).......................................................................6.10(b)(i)
      (a) (4).............................................................................N.A.
      (a) (5).............................................................................6.11
      (b) ................................................................................5.04
                                                                                          6.08
                                                                                          6.11
                                                                                         11.04
      (c) ................................................................................N.A.
(Section)311(a) ..........................................................................6.12
      (b) ................................................................................6.12
      (c) ................................................................................N.A.
(Section)312(a) ..........................................................................7.01
      (b) ................................................................................7.01
                                                                                       7.02(b)
      (c) .............................................................................7.02(c)
(Section)313(a) ..........................................................................7.04
      (b) (1).............................................................................N.A.
      (b) (2).............................................................................7.04
      (c) ................................................................................7.04
                                                                                         11.04
      (d) ................................................................................7.04
(Section)314(a) ..........................................................................7.03
                                                                                          3.09
                                                                                         11.04
                                                                                          7.04
      (b) ................................................................................3.06
                                                                                         11.14
                                                                                          7.04
      (c) (1) ...........................................................................11.01
                                                                                          6.02
                                                                                       8.05(b)
                                                                                          6.02
                                                                                         11.01
      (c) (2)............................................................................11.01
                                                                                          3.06
                                                                                          3.10
                                                                                          6.02
                                                                                       8.05(b)
</TABLE>
                                       v

<PAGE>   7

<TABLE>
<CAPTION>
   TIA                                                                               Indenture
 Section                                                                              Section
 -------                                                                             ----------
<S>                                                                                  <C>

                                                                                          8.06
      (c) (3)............................................................................11.01
      (d) ............................................................................11.01(c)
      (e) ...............................................................................11.01
      (f) ................................................................................N.A.
(Section)315(a)  .........................................................................6.01
      (b) ................................................................................6.05
      (c) ................................................................................N.A.
      (d) .............................................................................6.01(c)
      (e) ................................................................................5.13
(Section)316(a)(1) (A) ...................................................................5.11
                                                                                       6.01(c)
      (a) (1) (B).........................................................................5.12
      (a) (2).............................................................................N.A.
      (b) ................................................................................5.07
                                                                                          9.02
                                                                                       5.13(c)
      (c) ................................................................................N.A.
(Section 317(a) (1) ......................................................................5.04
      (a) (2) .........................................................................5.03(c)
                                                                                       5.03(d)
                                                                                          5.04
      (b) ................................................................................3.03
(Section)318(a) .........................................................................11.07
</TABLE>

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

                                       vi
<PAGE>   8

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

        Each party agrees as follows for the benefit of the other party and for
the equal and ratable benefit of (i) the Holders of the Issuer's 5.5225% Asset
Backed Notes, Class A-1 (the "Class A-1 Notes"), 5.3400% Asset Backed Notes,
Class A-2 (the "Class A-2 Notes"), 5.5500% Asset Backed Notes, Class A-3 (the
"Class A-3 Notes"), and 5.7500% Asset Backed Notes, Class A-4 (the "Class A-4
Notes" and, together with the Class A-1, Class A-2 and the Class A-3 Notes, the
"Notes") and (ii) for the purposes of the Granting Clause below, the
Certificateholders:

                                 GRANTING CLAUSE

        The Issuer hereby Grants to the Indenture Trustee at the Closing Date,
as Indenture Trustee for the benefit of the Holders of the Notes and
Certificates, the following:

       (i) all right, title and interest of the Issuer in and to the
Receivables (including all related Receivable Files) and all monies due thereon
or paid thereunder or in respect thereof (including proceeds of the repurchase
of Receivables by the Seller pursuant to Section 3.02 of the Sale and Servicing
Agreement or the purchase of Receivables by the Servicer pursuant to Section
4.06 or 9.01 of the Sale and Servicing Agreement) after the Cutoff Date;

      (ii) the Collection Account and amounts on deposit in the Collection
Account and the Yield Supplement Account;

      (iii) the right of the Issuer in the security interests in the Financed
Vehicles granted by the Obligors pursuant to the Receivables and any related
property;

      (iv) the right of the Issuer in any proceeds from claims on any physical
damage, credit life, credit disability or other insurance policies covering the
Financed Vehicles or the Obligors;

      (v) the right of the Issuer (through the Seller and NMAC) to receive
payments in respect of any Dealer Recourse with respect to the Receivables;

      (vi) the rights of the Issuer under the Sale and Servicing Agreement, and,
through the Seller, under the Purchase Agreement and the Assignment;

      (vii) the rights of the Issuer under the Yield Supplement Agreement, and
the right transferred to the Issuer under the Sale and Servicing Agreement to
receive the Lease Payment Deposit;

      (viii) the right of the Issuer to realize upon any property (including the
right to receive future Net Liquidation Proceeds) that shall have secured a
Receivable;

      (ix) the right of the Issuer in rebates of premiums and other amounts
relating to insurance policies and other items financed under the Receivables in
effect as of the Cutoff Date;

                                       1
<PAGE>   9

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

        (xi) all proceeds of the foregoing.

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

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

                                    ARTICLE I
                   Definitions and Incorporation by Reference

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

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

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

        "Administrator" means NMAC or any successor Administrator under the
Administration Agreement.

        "Applicant" has the meaning specified in Section 7.01.

        "Authorized Officer" means with respect to the Issuer, any officer of
the Owner Trustee who is authorized to act for the Owner Trustee in matters
relating to the Issuer identified as such on any list of Authorized Officers
delivered by the Owner Trustee to the Indenture Trustee.

        "Book-Entry Notes" means a beneficial interest in the Class A-1 Notes,
the Class A-2 Notes, the Class A-3 Notes, and the Class A-4 Notes, ownership and
transfers of which shall be made through book entries by a Clearing Agency as
described in Section 2.10.

        "Business Day" means any day except a Saturday, a Sunday or a day on
which banks in New York, New York, Los Angeles, California, Wilmington, Delaware
or Minneapolis,

                                       2
<PAGE>   10

Minnesota are authorized or obligated by law, regulation, executive order or
governmental decree to be closed.

        "Certificates" means the Certificates of the Issuer issued under the
Trust Agreement.

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

        "Class A-1 Rate" means 5.5225% per annum (computed on the basis of
actual number of days in the related Interest Period and a 360-day year).

        "Class A-1 Notes" means the 5.5225% Asset Backed Notes, Class A-1,
substantially in the form attached hereto as Exhibit A.

        "Class A-2 Rate" means 5.3400% per annum (computed on the basis of a
360-day year consisting of twelve 30-day months).

        "Class A-2 Notes" means the 5.3400% Asset Backed Notes, Class A-2,
substantially in the form attached hereto as Exhibit A.

        "Class A-3 Rate" means 5.5500% per annum (computed on the basis of a
360-day year consisting of twelve 30-day months).

        "Class A-3 Notes" means the 5.5500% Asset Backed Notes, Class A-3,
substantially in the form attached hereto as Exhibit A.

        "Class A-4 Rate" means 5.7500% per annum (computed on the basis of a
360-day year consisting of twelve 30-day months).

        "Class A-4 Notes" means the 5.7500% Asset Backed Notes, Class A-4,
substantially in the form attached hereto as Exhibit A.

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

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

        "Closing Date" means February 1, 2001.

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

        "Collateral" means the property of the Issuer subject to the Granting
Clause hereof, the Reserve Account, all amounts held from time to time in the
Reserve Account and all investments therein.

        "Corporate Trust Office" means the principal office of the Indenture
Trustee at which at any particular time its corporate trust business shall be
administered, which office at the date of

                                       3
<PAGE>   11

execution of this Agreement is located at Wells Fargo Center, Sixth and
Marquette Avenue, MAC N9311-161, Minneapolis, MN 55479, Attn: Asset Backed
Securities Department, or at such other address as the Indenture Trustee may
designate from time to time by notice to the Noteholders, the Issuer and the
Administrator, or the principal corporate trust office of any successor
Indenture Trustee at the address designated by such successor Indenture Trustee
by notice to the Noteholders, the Issuer and the Administrator.

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

        "Definitive Notes" has the meaning specified in Section 2.10.

        "Event of Default" has the meaning specified in Section 5.01.

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

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

        "Grant" means mortgage, pledge, bargain, sell, warrant, alienate,
remise, release, convey, assign, transfer, create, and grant a lien upon and a
security interest in and right of set-off against, deposit, set over and confirm
pursuant to this Indenture. A Grant of the Collateral or of any other agreement
or instrument shall include all rights, powers and options (but none of the
obligations) of the granting party thereunder, including the immediate and
continuing right to claim for, collect, receive and give receipt for principal
and interest payments in respect of the Collateral and all other moneys payable
thereunder, to give and receive notices and other communications, to make
waivers or other agreements, to exercise all rights and options, to bring
Proceedings in the name of the granting party or otherwise, and generally to do
and receive anything that the granting party is or may be entitled to do or
receive thereunder or with respect thereto.

        "Holder" or "Noteholder" means the Person in whose name a Note is
registered on the Note Register.

        "Indenture Trustee" means Wells Fargo Bank Minnesota, National
Association, a national banking association, as Indenture Trustee under this
Indenture, or any successor Indenture Trustee under this Indenture.

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

                                       4
<PAGE>   12

otherwise had legal, contractual or fiduciary or other duties to act on behalf
of or for the benefit thereof.

        "Independent Certificate" means a certificate or opinion to be delivered
to the Indenture Trustee, made by an Independent appraiser or other expert
appointed by an Issuer Order and approved by the Indenture Trustee in the
exercise of reasonable care, and such opinion or certificate shall state that
the signer has read the definition of "Independent" in this Indenture and that
the signer is Independent within the meaning thereof.

        "Interest Period" means, with respect to any Distribution Date and the
Class A-1 Notes, the period from (and including) the preceding Distribution Date
to (but excluding) such Distribution Date, except that the initial Interest
Period will be from (and including) the Closing Date to (but excluding) February
15, 2001, and, with respect to any Distribution Date and the Class A-2 Notes,
the Class A-3 Notes, and the Class A-4 Notes, the period from (and including)
the 15th day of the preceding calendar month to (but excluding) the 15th day of
the month in which such Distribution Date occurs, except that the initial
Interest Period will be from (and including) the Closing Date to (but excluding)
February 15, 2001.

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

        "Issuer" means Nissan Auto Receivables 2001-A Owner Trust unless and
until a successor replaces it and, thereafter, means the successor and, for
purposes of any provision contained herein and required by the TIA, each other
obligor on the Notes.

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

        "Lease Contract Payments" means, with respect to any Lease Contract, the
monthly base rent payments in accordance with the terms of the related Lease
Contract.

        "Lease Payment Deposit" means, with respect to any Distribution Date,
all Lease Contract Payments received by NMAC as of such Distribution Date with
respect to the related Collection Period.

        "NMAC" means Nissan Motor Acceptance Corporation, in its individual
capacity and not as Servicer.

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

        "Note Depository Agreement" means the agreement entitled "Letter of
Representations" dated on or before the Closing Date among the Clearing Agency,
the Issuer and the Indenture Trustee with respect to certain matters relating to
the duties thereof with respect to the Book-Entry Notes.

         "Note Owner" means, with respect to a Book-Entry Note, any Person who
is the beneficial owner of such Book-Entry Note, as reflected on the books of
the Clearing Agency or on the books of a Person maintaining an account with such
Clearing Agency (directly as a

                                       5
<PAGE>   13

Clearing Agency Participant or as an indirect participant, in each case in
accordance with the rules of such Clearing Agency).

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

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

        "Officer's Certificate" means a certificate signed by any Authorized
Officer of the Issuer, under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 11.01, and delivered to
the Indenture Trustee.

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

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

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

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

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

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

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

                                       6
<PAGE>   14

        "Owner Trustee" means Wilmington Trust Company, not in its individual
capacity but solely as Owner Trustee under the Trust Agreement, or any successor
Owner Trustee under the Trust Agreement.

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

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

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

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

        "Responsible Officer" means, with respect to the Indenture Trustee, any
officer within the Corporate Trust Office of the Indenture Trustee, including
any Vice President, Assistant Vice President, Assistant Treasurer, Assistant
Secretary or any other officer of the Indenture Trustee customarily performing
functions similar to those performed by any of the above designated officers and
also, with respect to a particular matter, any other officer to whom such matter
is referred because of such officer's knowledge of and familiarity with the
particular subject.

        "Sale and Servicing Agreement" means the Sale and Servicing Agreement,
dated as of February 1, 2001, among the Issuer, Nissan Auto Receivables
Corporation II, as Seller, and Nissan Motor Acceptance Corporation, as Servicer,
and as to which the Indenture Trustee is a third party beneficiary of certain
provisions.

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

        "Securities Account Control Agreement" shall have the meaning assigned
to such term in the Sale and Servicing Agreement.

        "Seller" shall mean Nissan Auto Receivables Corporation II, in its
capacity as seller under the Sale and Servicing Agreement, and its successor in
interest.

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

         "Successor Servicer" has the meaning specified in Section 3.07.

         "Trust Estate" means all money, instruments, rights and other property
that are subject or intended to be subject to the lien and security interest of
this Indenture for the benefit of the

                                       7
<PAGE>   15

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

        "Trust Indenture Act" or "TIA" means the Trust Indenture Act of 1939 as
in force on the date hereof, unless otherwise specifically provided.

        "UCC" means, unless the context otherwise requires, the Uniform
Commercial Code, as in effect in the relevant jurisdiction at the relevant time.

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

        SECTION 1.03 Incorporation by Reference of Trust Indenture Act. Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated
by reference in and made a part of this Indenture. The following TIA terms used
in this Indenture have the following meanings:

        "Commission" means the Securities and Exchange Commission.

        "indenture securities" means the Notes.

        "indenture security holder" means a Noteholder.

        "indenture to be qualified" means this Indenture.

        "indenture trustee" or "institutional trustee" means the Indenture
Trustee.

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

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

                                   ARTICLE II
                                    The Notes

      SECTION 2.01 Form. The Class A-1 Notes, the Class A-2 Notes, the Class A-3
Notes and the Class A-4 Notes, in each case together with the Indenture
Trustee's certificate of authentication, shall be in substantially the form set
forth in Exhibit A, with such appropriate insertions, omissions, substitutions
and other variations as are required or permitted by this

                                       8
<PAGE>   16

Indenture, and may have such letters, numbers or other marks of identification
and such legends or endorsements placed thereon as may, consistently herewith,
be determined by the officers executing such Notes, as evidenced by their
execution thereof. Any portion of the text of any Note may be set forth on the
reverse thereof, with an appropriate reference thereto on the face of the Note.

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

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

        SECTION 2.02 Execution, Authentication and Delivery. The Notes shall be
executed on behalf of the Issuer by any of its Authorized Officers. The
signature of any such Authorized Officer on the Notes may be manual or
facsimile. Notes bearing the manual or facsimile signature of individuals who
were at any time Authorized Officers of the Issuer shall bind the Issuer,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Notes or did not hold
such offices at the date of such Notes. The Indenture Trustee shall upon Issuer
Order authenticate and deliver the Class A-1 Notes for original issue in an
aggregate principal amount of $201,800,000, the Class A-2 Notes for original
issue in an aggregate principal amount of $350,000,000, the Class A-3 Notes for
original issue in an aggregate principal amount of $249,000,000, and the Class
A-4 Notes for original issue in an aggregate principal amount of $182,072,000.
The aggregate principal amount of the Class A-1 Notes, the Class A-2 Notes, the
Class A-3 Notes and the Class A-4 Notes outstanding at any time may not exceed
such respective amounts except as provided in Section 2.05. The Notes shall be
issuable as registered Notes in denominations of $1,000 and any integral
multiple thereof. Each Note shall be dated the date of its authentication.

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

      SECTION 2.03 Temporary Notes. Pending the preparation of Definitive Notes,
the Issuer may execute, and upon receipt of an Issuer Order the Indenture
Trustee shall authenticate and deliver, temporary Notes that are printed,
lithographed, typewritten, mimeographed or otherwise produced, of the tenor of
the Definitive Notes in lieu of which they are issued and with such variations
not inconsistent with the terms of this Indenture as the officers executing such
Notes may determine, as evidenced by their execution of such Notes. If temporary
Notes are issued, the Issuer will cause Definitive Notes to be prepared without
unreasonable delay. After the preparation of Definitive Notes, the temporary
Notes shall be exchangeable for Definitive Notes upon surrender of the temporary
Notes at the office or agency of the Issuer to be maintained as provided in
Section 3.02, without charge to the Holder. Upon surrender for cancellation of
any one or more temporary Notes of any Class, the Issuer shall

                                       9
<PAGE>   17

execute, and the Indenture Trustee shall authenticate and deliver in exchange
therefor, a like principal amount of Definitive Notes of such Class of
authorized denominations. Until so exchanged, the temporary Notes shall in all
respects be entitled to the same benefits under this Indenture as Definitive
Notes.

        SECTION 2.04 Registration; Registration of Transfer and Exchange.

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

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

        (b) Upon the proper surrender for registration of transfer of any Note
at the office or agency of the Issuer to be maintained as provided in Section
3.02, the Issuer shall execute, and the Indenture Trustee shall authenticate in
the name of the designated transferee or transferees, one or more new Notes of
the same Class in authorized denominations of a like aggregate principal amount.

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

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

                                       10
<PAGE>   18

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

        SECTION 2.05 Mutilated, Destroyed, Lost or Stolen Notes. If (i) any
mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any
Note, and (ii) there is delivered to the Indenture Trustee such security or
indemnity as may be required by it to hold the Issuer and the Indenture Trustee
harmless, then, in the absence of notice to the Issuer, the Note Registrar or
the Indenture Trustee that such Note has been acquired by a protected purchaser,
the Issuer shall execute, and upon its request the Indenture Trustee shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Note, a replacement Note of the same Class. In
connection with the issuance of any new Note under this Section 2.05, the Issuer
may require payment by the Holder of such Note of a sum sufficient to cover any
tax or other governmental charge that may be imposed in relation thereto.

        If, after the delivery of such replacement Note or payment of a
destroyed, lost or stolen Note, a protected purchaser of the original Note in
lieu of which such replacement Note was issued presents for payment such
original Note, the Issuer and the Indenture Trustee shall be entitled to recover
such replacement Note (or such payment) from the Person to whom it was delivered
or any Person taking such replacement Note from such Person to whom such
replacement Note was delivered or any assignee of such Person, except a
protected purchaser, and shall be entitled to recover upon the security or
indemnity provided therefor to the extent of any loss, damage, cost or expense
incurred by the Issuer or the Indenture Trustee in connection therewith.

        Every replacement Note issued pursuant to this Section 2.05 in
replacement of any mutilated, destroyed, lost or stolen Note shall constitute an
original additional contractual obligation of the Issuer, whether or not the
mutilated, destroyed, lost or stolen Note shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes of the same Class duly issued
hereunder.

        The provisions of this Section 2.05 are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Notes.

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

        SECTION 2.07 Payments of Principal and Interest.

(a) The Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class
A-4 Notes shall accrue interest during each Interest Period at the Class A-1
Rate, the Class A-2 Rate,

                                       11
<PAGE>   19

the Class A-3 Rate, and the Class A-4 Rate, respectively, and such interest
shall be payable on each related Distribution Date as specified in the
applicable Note by applying amounts available pursuant to Section 5.06 of the
Sale and Servicing Agreement and to Section 3.01 of this Indenture. Any
installment of interest or principal payable on any Note that is punctually paid
or duly provided for by the Issuer on the applicable Distribution Date shall be
paid to the Person in whose name such Note (or one or more Predecessor Notes) is
registered on the Record Date by wire transfer in immediately available funds to
the account designated by such nominee, except for the final installment of
principal payable with respect to such Note on a Distribution Date or on the
applicable Final Scheduled Distribution Date, which shall be payable as provided
below.

        (b) The principal of each Note shall be payable in installments on each
Distribution Date by applying amounts available pursuant to Section 5.06 of the
Sale and Servicing Agreement. Notwithstanding the foregoing, the entire unpaid
principal amount of the Notes shall be due and payable, if not previously paid,
from and after the date on which the Indenture Trustee or the Holders of a
majority of the Outstanding Amount of the Notes, voting as a single class
(excluding for such purpose the outstanding principal amount of any Notes held
of record or beneficially owned by NARC II, NMAC or any of their Affiliates,
unless at such time all of the Notes are held of record or beneficially owned by
NARC II, NMAC or any of their Affiliates), have declared the Notes to be
immediately due and payable in the manner provided in Section 5.02 in connection
with an Event of Default. All principal payments on each Class of Notes shall be
made pro rata to the Noteholders of such Class entitled thereto. The Indenture
Trustee shall notify the Person in whose name a Note is registered at the close
of business on the Record Date preceding the Distribution Date on which the
final installment of principal of and interest on such Note will be paid. Such
notice shall be mailed or transmitted by facsimile not less than 15 nor more
than 30 days prior to such final Distribution Date, shall specify that such
final installment will be payable only upon presentation and surrender of such
Note and shall specify the place where such Note may be presented and
surrendered for payment of such installment.

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

      SECTION 2.09 Release of Collateral. Subject to Sections 8.05 and 11.01 and
the terms of the Basic Documents, the Indenture Trustee shall release property
from the lien of this Indenture only upon receipt of an Issuer Request
accompanied by an Officer's Certificate, an Opinion of Counsel and Independent
Certificates in accordance with TIA Sections 314(c) and

                                       12
<PAGE>   20

314(d)(l) or an Opinion of Counsel in lieu of such Independent Certificates to
the effect that the TIA does not require any such Independent Certificates.

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

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

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

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

        (d) the rights of Note Owners shall be exercised only through the
Clearing Agency and shall be limited to those established by law and agreements
between such Note Owners and the Clearing Agency and/or the Clearing Agency
Participants pursuant to the Note Depository Agreement. Unless and until
Definitive Notes are issued pursuant to Section 2.12, the initial Clearing
Agency will make book-entry transfers among the Clearing Agency Participants and
receive and transmit payments of principal of and interest on the Notes to such
Clearing Agency Participants; and

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

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

        SECTION 2.12 Definitive Notes. If (i) the Seller, the Owner Trustee or
the Administrator advises the Indenture Trustee in writing that the Clearing
Agency is no longer willing or able to properly discharge its responsibilities
with respect to the Book-Entry Notes and

                                       13
<PAGE>   21

the Seller, the Owner Trustee and the Administrator are unable to locate a
qualified successor (and if the Administrator has made such determination, the
Administrator has given written notice thereof to the Indenture Trustee), (ii)
the Seller, the Indenture Trustee or the Administrator at its option advises
each other such party in writing that it elects to terminate the book-entry
system through the Clearing Agency, or (iii) after the occurrence of an Event of
Default or a Servicer Default, Note Owners representing beneficial interests
aggregating a majority of the Outstanding Amount of the Notes of all Classes
advise the Indenture Trustee and the Clearing Agency in writing that the
continuation of a book-entry system through the Clearing Agency or a successor
thereto is no longer in the best interests of the Note Owners acting together as
a single Class, then the Clearing Agency shall notify all Note Owners and the
Indenture Trustee of the occurrence of such event and of the availability of
Definitive Notes to Note Owners requesting the same. Upon surrender to the
Indenture Trustee of the typewritten Notes representing the Book-Entry Notes by
the Clearing Agency, accompanied by registration instructions, the Issuer shall
execute and the Indenture Trustee shall authenticate the Definitive Notes in
accordance with the instructions of the Clearing Agency. None of the Issuer, the
Note Registrar or the Indenture Trustee shall be liable for any delay in
delivery of such instructions and may conclusively rely on, and shall be
protected in relying on, such instructions. Upon the issuance of Definitive
Notes, the Indenture Trustee shall recognize the Holders of the Definitive Notes
as Noteholders. The Indenture Trustee, Issuer and Administrator shall not be
liable for any inability to locate a qualified successor Clearing Agency. From
and after the date of issuance of Definitive Notes, all notices to be given to
Noteholders will be mailed thereto at their addresses of record in the Note
Register as of the relevant Record Date. Such notices will be deemed to have
been given as of the date of mailing.

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

                                   ARTICLE III
                                    Covenants

       SECTION 3.01 Payment of Principal and Interest. In accordance with the
terms of this Indenture, the Issuer will duly and punctually (i) pay the
principal of and interest, if any, on the Notes in accordance with the terms of
the Notes and (ii) cause the Servicer to direct the Indenture Trustee to release
from the Collection Account all other amounts distributable or payable from the
Owner Trust Estate under the Trust Agreement, the Sale and Servicing Agreement
and the Administration Agreement. Without limiting the foregoing and in order to
fulfill such obligations, pursuant to Sections 8.02 and 8.03 hereof, the Issuer
will cause the Servicer to direct the Indenture Trustee to apply all amounts on
deposit in the Collection Account, the Reserve Account and the Yield Supplement
Account on a Distribution Date deposited therein pursuant to the Sale and
Servicing Agreement (i) (a) for the benefit of the Class A-1 Notes, to the
Class A-1 Noteholders, (b) for the benefit of the Class A-2 Notes, to the Class

                                       14
<PAGE>   22

A-2 Noteholders, (c) for the benefit of the Class A-3 Notes, to the Class A-3
Noteholders, and (d) for the benefit of the Class A-4 Notes, to the Class A-4
Noteholders, and (ii) for the benefit of the Certificateholders, to or as
directed by the Owner Trustee or the Administrator, as set forth in Section
5.06, 5.07 and 5.08 of the Sale and Servicing Agreement. Amounts properly
withheld under the Code by any Person from a payment to any Noteholder of
interest and/or principal shall be considered as having been paid by the Issuer
to such Noteholder for all purposes of this Indenture.

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

        SECTION 3.03 Money for Payments To Be Held in Trust. As provided in
Sections 8.02 and 8.03, all payments of amounts due and payable with respect to
any Notes that are to be made from amounts withdrawn from the Collection
Account, the Reserve Account or the Yield Supplement Account pursuant to
Sections 8.02 and 8.03 shall be made on behalf of the Issuer by the Indenture
Trustee or by the Paying Agent, and no amounts so withdrawn from such accounts
for payments of Notes shall be paid over to the Issuer, the Owner Trustee or the
Administrator except as provided in this Section.

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

        The Indenture Trustee, as Paying Agent, hereby agrees with the Issuer
that it will, and the Issuer will cause each Paying Agent other than the
Indenture Trustee, as a condition to its acceptance of its appointment as Paying
Agent, to execute and deliver to the Indenture Trustee an instrument in which
such Paying Agent shall agree with the Indenture Trustee, subject to the
provisions of this Section, that such Paying Agent will:

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

                                       15
<PAGE>   23

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

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

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

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

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

        Subject to applicable laws with respect to escheat of funds, any money
held by the Indenture Trustee or any Paying Agent in trust for the payment of
any amount due with respect to any Note and remaining unclaimed after such
amount has become due and payable and after the Indenture Trustee has taken the
steps described in this paragraph shall be discharged from such trust and be
paid to Children's Hospital Los Angeles upon presentation thereto of an Issuer
Request; and the Holder of such Note shall thereafter, as an unsecured general
creditor, look only to the Issuer for payment thereof, and all liability of the
Indenture Trustee or such Paying Agent with respect to such trust money shall
thereupon cease. In the event that any Noteholder shall not surrender its Notes
for retirement within six months after the date specified in the written notice
of final payment described in Section 2.07, the Indenture Trustee will give a
second written notice to the registered Noteholders that have not surrendered
their Notes for final payment and retirement. If within one year after such
second notice any Notes have not been surrendered, the Indenture Trustee shall,
at the expense and direction of the Issuer, cause to be published once, in a
newspaper published in the English language, customarily published on each
Business Day and of general circulation in The City of New York, notice that
such money remains unclaimed and that, after a date specified therein, which
shall not be less than 30 days from the date of such publication, any unclaimed
balance of such money then remaining will be paid to Children's Hospital Los
Angeles. The Indenture Trustee shall also adopt and employ, at the expense and
direction of the Issuer, any other reasonable means of notification of such
repayment specified by the Issuer or the Administrator.

                                       16
<PAGE>   24

        SECTION 3.04 Existence. The Issuer will keep in full effect its
existence, rights and franchises as a business trust under the laws of the State
of Delaware (unless it becomes, or any successor Issuer hereunder is or becomes,
organized under the laws of any other State or of the United States of America,
in which case the Issuer will keep in full effect its existence, rights and
franchises under the laws of such other jurisdiction) and will obtain and
preserve its qualification to do business in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Notes, the Collateral and each other
instrument or agreement included in the Trust Estate or the Owner Trust Estate.

        SECTION 3.05 Protection of Trust Estate. The Issuer will from time to
time execute and deliver all such supplements and amendments hereto and all such
financing statements, continuation statements, instruments of further assurance
and other instruments, and will take such other action necessary or advisable
to:

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

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

        (c) enforce any of the Collateral; or

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

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

        SECTION 3.06 Opinions as to Trust Estate.

        (a) On the Closing Date, the Issuer shall furnish to the Indenture
Trustee an Opinion of Counsel either stating that, in the opinion of such
counsel, such action has been taken with respect to the execution, recording and
filing of this Indenture, any indentures supplemental hereto, any requisite
financing statements and continuation statements and any other requisite
documents necessary to perfect and make effective the lien and security interest
of this Indenture or stating that, in the opinion of such counsel, no such
action is necessary to make such lien and security interest effective.

        (b) As and when specified in Section 10.02(h) of the Sale and Servicing
Agreement, the Issuer shall furnish to the Indenture Trustee an Opinion of
Counsel either stating that, in the opinion of such counsel, such action has
been taken with respect to the execution, recording, filing or re-recording and
refiling of this Indenture, any indentures supplemental hereto, any financing
statements and continuation statements and any other requisite documents
necessary to maintain the lien and security interest created by this Indenture
or stating that in the opinion of such counsel no such action is necessary to
maintain such lien and security interest. Such Opinion of Counsel shall also
describe the execution, recording, filing or re-recording and refiling of this
Indenture, any indentures supplemental hereto, any financing statements and

                                       17
<PAGE>   25

continuation statements and any other documents that will, in the opinion of
such counsel, be required to maintain the lien and security interest of this
Indenture until the date in the following calendar year on which such Opinion of
Counsel must again be delivered.

        SECTION 3.07 Performance of Obligations; Servicing of Receivables.

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

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

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

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

       (e) As promptly as possible after the giving of notice of termination to
the Servicer of the Servicer's rights and powers pursuant to Section 8.01 of the
Sale and Servicing Agreement, the Indenture Trustee shall appoint a successor
servicer (the "Successor Servicer"), and such Successor Servicer shall accept
its appointment by a written assumption in a form acceptable to the Indenture
Trustee. In the event that a Successor Servicer has not been appointed and
accepted its appointment as set forth in Section 8.02 of the Sale and Servicing
Agreement, the Indenture Trustee without further action shall automatically be
appointed the Successor Servicer and shall thereafter be entitled to the Total
Servicing Fee. Notwithstanding the above, the Indenture Trustee shall, if it
shall be legally unable so to act, appoint or petition a court of competent
jurisdiction to appoint, and the predecessor Servicer, if no successor Servicer
has been appointed at the time the predecessor Servicer has ceased to act, may
petition a court of competent jurisdiction to appoint, any established
institution having a net worth of not less than $100,000,000 and whose regular
business shall include the servicing of automobile and/or light-

                                       18
<PAGE>   26

duty truck receivables, as the successor to the Servicer under the Sale and
Servicing Agreement. Upon such appointment, the Indenture Trustee will be
released from the duties and obligations of acting as Successor Servicer, such
release effective upon the effective date of the servicing agreement entered
into between the Successor Servicer and the Issuer.

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

        (f) Upon any termination of the Servicer's rights and powers pursuant to
the Sale and Servicing Agreement, the Issuer shall promptly notify the Indenture
Trustee. As soon as a Successor Servicer is appointed, the Issuer shall notify
the Indenture Trustee of such appointment, specifying in such notice the name
and address of such Successor Servicer.

        (g) Without derogating from the absolute nature of the assignment
granted to the Indenture Trustee under this Indenture or the rights of the
Indenture Trustee hereunder, the Issuer agrees (i) that it will not, without the
prior written consent of the Indenture Trustee and the Holders of a majority in
Outstanding Amount of the Notes, voting as a single class (excluding for such
purposes the outstanding principal amount of any Notes held of record or
beneficially owned by NMAC, NARC II or any of their Affiliates, unless at such
time all of the Notes are held of record or beneficially owned by NARC II, NMAC
or any of their Affiliates), amend, modify, waive, supplement, terminate or
surrender, or agree to any amendment, modification, waiver, supplement,
termination or surrender of, the terms of any Collateral (except to the extent
otherwise provided in the Sale and Servicing Agreement) or the Basic Documents,
or waive timely performance or observance by the Servicer or the Seller under
the Sale and Servicing Agreement; and (ii) that any such amendment shall not (A)
increase or reduce in any manner the amount of, or accelerate or delay the
timing of, collections of payments on the Receivables or distributions that are
required to be made for the benefit of the Noteholders or change the Interest
Rate or the Specified Reserve Account Balance (except as otherwise provided in
the Basic Documents), in each case without the consent of each of the "adversely
affected" Noteholders, or (B) reduce the aforesaid percentage of the Notes that
is required to consent to any such amendment, without the consent of the Holders
of all the outstanding Notes. If any such amendment, modification, supplement or
waiver shall be so consented to by the Indenture Trustee or such Holders, the
Issuer agrees, promptly following a request by the Indenture Trustee to agree
to such amendment and to execute and deliver, in its own name and at its own
expense, such agreements, instruments, consents and other documents as the
Indenture Trustee may deem necessary or appropriate in the circumstances to
implement such amendment and to cause the

                                       19
<PAGE>   27

relevant Basic Documents, as amended, to be enforceable against the Issuer. For
the purposes of clause (ii) above, an amendment will be deemed not to "adversely
affect" a Noteholder of any Class only if each Rating Agency confirms that such
amendment will not result in a reduction or withdrawal of its rating on such
Class of Notes.

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

        (a) except as expressly permitted by Basic Documents, sell, transfer,
exchange or otherwise dispose of any of the properties or assets of the Issuer,
including those included in the Trust Estate, unless directed to do so by the
Indenture Trustee;

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

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

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

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

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

        (b) to the best of such Authorized Officer's knowledge, based on such
review, the Issuer has complied with all conditions and covenants under this
Indenture throughout such year,

                                       20
<PAGE>   28
or, if there has been a default in its compliance with any such condition or
covenant, specifying each such default known to such Authorized Officer and the
nature and status thereof.

        SECTION 3.10  Issuer May Consolidate, etc., Only on Certain Terms.

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

               (i) the Person (if other than the Issuer) formed by or surviving
        such consolidation or merger shall be a Person organized and existing
        under the laws of the United States of America or any State or the
        District of Columbia and shall expressly assume, by an indenture
        supplemental hereto, executed and delivered to the Indenture Trustee, in
        form satisfactory to the Indenture Trustee, the duty to make due and
        punctual payment of the principal of and interest on all Notes and the
        performance or observance of every agreement and covenant of this
        Indenture on the part of the Issuer to be performed or observed, all as
        provided herein;

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

               (iii) no Rating Agency shall have notified the Indenture Trustee
        and the Owner Trustee that such transaction might or would result in the
        removal or reduction of the rating then assigned thereby to any Class of
        Notes;

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

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

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

        (b) The Issuer shall not convey or transfer any of its properties or
assets, including those included in the Trust Estate, to any Person, unless:

               (i) the Person that acquires by conveyance or transfer such
        properties and assets of the Issuer shall (A) be a United States
        citizen or a Person organized and existing under the laws of the
        United States of America or any state or the District of Columbia,
        (B) expressly assume, by an indenture supplemental hereto, executed
        and delivered to the Indenture Trustee, in form satisfactory to the
        Indenture Trustee, the duty to make due and punctual payment of the
        principal of and interest on all Notes and the performance or observance
        of every agreement and covenant of this Indenture on the part of the
        Issuer to

                                       21
<PAGE>   29

        be performed or observed, all as provided herein, (C) expressly
        agrees by means of such supplemental indenture that all right, title
        and interest so conveyed or transferred shall be subject and
        subordinate to the rights of Holders of the Notes, (D) unless
        otherwise provided in such supplemental indenture, expressly agrees
        to indemnify, defend and hold harmless the Issuer, the Owner Trustee
        and the Indenture Trustee against and from any loss, liability or
        expense arising under or related to this Indenture and the Notes,
        and (E) expressly agrees by means of such supplemental indenture
        that such Person (or if a group of Persons, then one specified
        Person) shall make all filings that counsel satisfactory to such
        purchaser or transferee and the Indenture Trustee determines must be
        made with (1) the Commission (and any other appropriate Person)
        required by the Exchange Act or the appropriate authorities in any
        state in which the Notes have been sold pursuant to any
        qualification or exemption under the securities or "blue sky" laws
        of such state, in connection with the Notes or (2) the Internal
        Revenue Service or the relevant state or local taxing authorities of
        any jurisdiction;

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

               (iii) no Rating Agency shall have notified the Indenture Trustee
        and the Owner Trustee that such transaction might or would result in the
        removal or reduction of the rating then assigned thereby to any Class of
        Notes;

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

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

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

        SECTION 3.11 Successor or Transferee.

        (a) Upon any consolidation or merger of the Issuer in accordance with
Section 3.10(a), the Person formed by or surviving such consolidation or merger
(if other than the Issuer) shall succeed to, and be substituted for, and may
exercise every right and power of, the Issuer under this Indenture with the same
effect as if such Person had been named as the Issuer herein.

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

                                       22
<PAGE>   30

notice to the Indenture Trustee stating that Nissan Auto Receivables 2001-A
Owner Trust is to be so released.

        SECTION 3.12 No Other Business. Unless and until the Issuer shall have
been released from its duties and obligations hereunder, the Issuer shall not
engage in any business other than financing, purchasing, owning, selling and
managing the Receivables in the manner contemplated by the Basic Documents and
activities incidental thereto.

        SECTION 3.13 No Borrowing. Unless and until the Issuer shall have been
released from its duties and obligations hereunder, the Issuer shall not issue,
incur, assume, guarantee or otherwise become liable, directly or indirectly, for
any indebtedness except for the Notes or other obligations permitted hereunder
(including the obligation to reimburse Advances or certain expenses of the
Servicer) or under another Basic Document (including indemnification expenses of
the Issuer and certain fees and expenses of the Administrator).

        SECTION 3.14 Servicer's Notice Obligations. The Issuer shall cause the
Servicer to comply with all of its duties and obligations with respect to the
preparation of reports, the delivery of Officer's Certificates and Opinions of
Counsel and the giving of instructions and notices under the Sale and Servicing
Agreement (including, but not limited to, under Sections 4.08, 4.09, 4.11, 4.13,
5.09 and Article IX thereof).

        SECTION 3.15 Guarantees, Loans, Advances and Other Liabilities. Unless
and until the Issuer shall have been released from its duties and obligations
hereunder, except as contemplated by the Sale and Servicing Agreement or this
Indenture, the Issuer shall not make any loan or advance or credit to, or
guarantee (directly or indirectly or by an instrument having the effect of
assuring another's payment or performance on any obligation or capability of so
doing or otherwise), endorse or otherwise become contingently liable, directly
or indirectly, in connection with the obligations, stocks or dividends of, or
own, purchase, repurchase or acquire (or agree contingently to do so) any stock,
obligations, assets or securities of, or any other interest in, or make any
capital contribution to, any other Person.

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

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

        SECTION 3.18 Restricted Payments. The Issuer shall not, directly or
indirectly, (i) pay any dividend or make any distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, to the Servicer, the Owner Trustee or any Certificateholder or
otherwise with respect to any ownership or equity interest or security in or of
the Issuer, (ii) redeem, purchase, retire or otherwise acquire for value any
such ownership or

                                       23
<PAGE>   31

equity interest or security or (iii) set aside or otherwise segregate any
amounts for any such purpose; provided, however, that the Issuer may make, or
cause to be made, (x) distributions to the Servicer, the Owner Trustee and the
Certificateholders as contemplated by, and to the extent funds are available for
such purpose under, the Sale and Servicing Agreement or the Trust Agreement, and
(y) payments to the Owner Trustee or the Indenture Trustee pursuant to the
Administration Agreement. The Issuer will not, directly or indirectly, make
payments to or distributions from the Collection Account except in accordance
with the Basic Documents.

        SECTION 3.19 Notice of Events of Default. The Issuer shall give the
Indenture Trustee and each Rating Agency prompt written notice of each Event of
Default hereunder, each default on the part of the Servicer or the Seller of its
obligations under the Sale and Servicing Agreement (including any Servicer
Defaults) and each default on the part of NMAC of its obligations under the
Purchase Agreement. The Indenture Trustee shall notify each Noteholder of record
in writing of any Event of Default promptly upon a Responsible Officer obtaining
actual knowledge thereof. Such notices will be provided in accordance with
Section 2.11.

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

                                   ARTICLE IV
                           Satisfaction and Discharge

        SECTION 4.01 Satisfaction and Discharge of Indenture. This Indenture
shall cease to be of further effect with respect to the Notes except as to (i)
rights of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments
of principal thereof and interest thereon, (iv) Sections 3.03, 3.04, 3.05, 3.08,
3.10, 3.12 and 3.13, (v) the rights, obligations and immunities of the Indenture
Trustee hereunder (including the rights of the Indenture Trustee under Section
6.07 and the obligations of the Indenture Trustee under Sections 3.03 and 4.02),
and (vi) the rights of the Noteholders and the Certificateholders as
beneficiaries hereof with respect to the property so deposited with the
Indenture Trustee payable to all or any of them, and the Indenture Trustee, on
demand of and at the expense of the Issuer, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture with respect to the
Notes, when:

        (a) either (1) all Notes theretofore authenticated and delivered (other
than Notes that have been destroyed, lost or stolen and that have been replaced
or paid as provided in Section 2.05 and Notes for whose payment money has
theretofore been deposited in trust or segregated and held in trust by the
Issuer and thereafter repaid to the Issuer or discharged from such trust, as
provided in Section 3.03) have been delivered to the Indenture Trustee for
cancellation or (2) all Notes not theretofore delivered to the Indenture Trustee
for cancellation have become due and payable or will become due and payable
within one year (either because the Final Scheduled Distribution Date for the
Class A-4 Notes is within one year or because the Indenture Trustee has received
notice of the exercise of the option granted pursuant to Section 9.01 of the
Sale and Servicing Agreement) and the Issuer has irrevocably deposited or caused
to be irrevocably deposited with the Indenture Trustee cash or direct
obligations of or obligations guaranteed by

                                       24
<PAGE>   32

the United States of America (which will mature prior to the date such amounts
are payable), in trust for such purpose, in an amount sufficient to pay and
discharge the entire indebtedness on such Notes not theretofore delivered to the
Indenture Trustee for cancellation when due;

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

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

        SECTION 4.02 Application of Trust Money. All moneys deposited with the
Indenture Trustee pursuant to Section 4.01 hereof shall be held in trust and (a)
applied by it in accordance with the provisions of the Notes and this Indenture
to the payment, either directly or through any Paying Agent, as the Indenture
Trustee may determine, to the Holders of the particular Notes for the payment of
which such moneys have been deposited with the Indenture Trustee, of all sums
due and to become due thereon for principal and interest or (b) released to the
Owner Trustee for application pursuant to the Trust Agreement or the Sale and
Servicing Agreement; but such moneys need not be segregated from other funds
except to the extent required herein or in the Sale and Servicing Agreement or
required by law.

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

                                    ARTICLE V
                                    Remedies

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

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

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

        (c) default in the observance or performance of any covenant or
agreement of the Issuer made in this Indenture (other than a covenant or
agreement, a default in the observance or performance of which is elsewhere in
this Section specifically dealt with) which shall continue or

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<PAGE>   33

not be cured for a period of 90 days after there shall have been given, by
registered or certified mail, to the Issuer by the Indenture Trustee or to the
Issuer and the Indenture Trustee by the Holders of at least 25% of the
Outstanding Amount of the Notes, acting together as a single class, a written
notice specifying such default or incorrect representation or warranty and
requiring it to be remedied and stating that such notice is a notice of Default
hereunder;

        (d) any representation or warranty of the Issuer made in this Indenture
or in any certificate or other writing delivered pursuant hereto or in
connection herewith shall prove to have been incorrect in any material respect
as of the time when the same shall have been made, and such default shall
continue or not be cured, or the circumstance or condition in respect of which
such misrepresentation or warranty was incorrect shall not have been eliminated
or otherwise cured, for a period of 30 days after there shall have been given,
by registered or certified mail, to the Issuer by the Indenture Trustee or to
the Issuer and the Indenture Trustee by the Holders of at least 25% of the
Outstanding Amount of the Notes, acting together as a single Class, a written
notice specifying such default or incorrect representation or warranty and
requiring it to be remedied and stating that such notice is a notice of Default
hereunder;

        (e) the filing of a petition seeking entry of a decree or order for
relief by a court having jurisdiction in the premises in respect of the Issuer
or any substantial part of the Trust Estate in an involuntary case under any
applicable federal or state bankruptcy, insolvency or other similar law now or
hereafter in effect, or appointing a receiver, liquidator, assignee, custodian,
trustee, sequestrator or similar official of the Issuer or for any substantial
part of the Trust Estate, or ordering the winding-up or liquidation of the
Issuer's affairs, and such petition shall remain unstayed and in effect for a
period of 90 consecutive days; or

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

        The Issuer shall deliver to the Indenture Trustee, within five Business
Days after the occurrence thereof, written notice in the form of an Officer's
Certificate of any Default which with the giving of notice or the lapse of time
would become an Event of Default under clause (d), the status of such Default
and any action the Issuer is taking or proposes to take with respect thereto.

        SECTION 5.02 Acceleration of Maturity; Rescission and Annulment. If an
Event of Default should occur and be continuing, then and in every such case the
Indenture Trustee or the Holders of a majority of the Outstanding Amount of the
Notes, voting as a single class (excluding for such purposes the outstanding
principal amount of any Notes held of record or beneficially owned by NMAC, NARC
II or any of their Affiliates, unless at such time all of the Notes are held of
record or beneficially owned by NARC II, NMAC or any of their Affiliates) may
declare all the Notes to be immediately due and payable, by a notice in writing
to the Issuer

                                       26
<PAGE>   34

(and to the Indenture Trustee if given by Noteholders), and upon any such
declaration the unpaid principal amount of such Notes, together with accrued and
unpaid interest thereon through the date of acceleration, shall become
immediately due and payable.

        At any time after such declaration of acceleration of maturity has been
made and before a judgment or decree for payment of the money due has been
obtained by the Indenture Trustee as hereinafter in this Article V provided, the
Holders of a majority of the Outstanding Amount of the Notes, voting as a single
class (excluding for such purposes the outstanding principal amount of any Notes
held of record or beneficially owned by NMAC, NARC II or any of their
Affiliates, unless at such time all of the Notes are held of record or
beneficially owned by NARC II, NMAC or any of their Affiliates), by written
notice to the Issuer and the Indenture Trustee, may rescind and annul such
declaration and its consequences if:

        (a) the Issuer has paid or deposited with the Securities Intermediary in
the name of the Indenture Trustee a sum sufficient to pay:

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

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

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

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

        SECTION 5.03 Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee.

      (a) The Issuer covenants that if (i) default is made in the payment of any
interest on any Note, so long as any amounts remain unpaid with respect to the
Notes, when the same becomes due and payable, and such default continues for a
period of five days, or (ii) default is made in the payment of the principal of
or any installment of the principal of any Note when the same becomes due and
payable, the Issuer will, upon demand of the Indenture Trustee, pay to the
Indenture Trustee, for the benefit of the Holders of the Notes, the whole amount
then due and payable on the Notes for principal and interest, with interest upon
the overdue principal and, to the extent payment at such rate of interest shall
be legally enforceable, upon overdue installments of interest at the rate borne
by the Notes and in addition thereto such further amount as shall be sufficient
to cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Indenture Trustee and
its agents and counsel.

        (b) In case the Issuer shall fail forthwith to pay such amounts upon
such demand, the Indenture Trustee, in its own name and as trustee of an express
trust, may institute a Proceeding

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<PAGE>   35

for the collection of the sums so due and unpaid, and may prosecute such
Proceeding to judgment or final decree, and may enforce the same against the
Issuer or other obligor upon such Notes and collect in the manner provided by
law out of the property of the Issuer or other obligor upon such Notes, wherever
situated, the moneys adjudged or decreed to be payable.

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

        (d) In case there shall be pending, relative to the Issuer or any other
obligor upon the Notes or any Person having or claiming an ownership interest in
the Trust Estate, Proceedings under Title 11 of the United States Code or any
other applicable federal or state bankruptcy, insolvency or other similar law,
or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Issuer or its property or such other obligor or Person,
or in case of any other comparable judicial Proceedings relative to the Issuer
or other obligor upon the Notes, or to the creditors or property of the Issuer
or such other obligor, then, irrespective of whether the principal of any Notes
shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Indenture Trustee shall have made any
demand pursuant to the provisions of this Section, the Indenture Trustee shall
be entitled and empowered, by intervention in such Proceedings or otherwise:

               (i) to file and prove a claim or claims for the whole amount of
        principal and interest owing and unpaid in respect of the Notes, and to
        file such other papers or documents as may be necessary or advisable in
        order to have the claims of the Indenture Trustee (including any claim
        for reasonable compensation to the Indenture Trustee and each
        predecessor Indenture Trustee, and their respective agents, attorneys
        and counsel, and for reimbursement of all expenses and liabilities
        incurred, and all advances made, by the Indenture Trustee and each
        predecessor Indenture Trustee, except as a result of negligence or bad
        faith) and of the Noteholders allowed in such Proceedings;

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

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

               (iv) to file such proofs of claim and other papers or documents
        as may be necessary or advisable in order to have the claims of the
        Indenture Trustee or the Holders

                                       28
<PAGE>   36

        of Notes allowed in any judicial proceedings relative to the Issuer,
        its creditors and its property.

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

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

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

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

        SECTION 5.04 Remedies; Priorities.

        (a) If an Event of Default shall have occurred and be continuing and
result in the acceleration of the Notes, the Indenture Trustee shall make
payments on the Notes and to the Owner Trustee as set forth in Section 5.06(d)
of the Sale and Servicing Agreement, rather than pursuant to Section 5.06(c)
thereof.

        (b) If the Indenture Trustee, in compliance with Section 5.04(a), is
deemed to have a conflict of interest under the TIA and is required to resign as
Indenture Trustee hereunder, the Issuer shall, pursuant to Section 6.08, cause
the Servicer to appoint a successor Indenture Trustee.

        (c) In accordance with Section 5.04(b), if an Event of Default shall
have occurred and be continuing, the Indenture Trustee may do one or more of the
following (subject to Section 5.05):

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<PAGE>   37

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

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

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

               (iv) sell the Trust Estate or any portion thereof or rights or
        interest therein, at one or more public or private sales called and
        conducted in any manner permitted by law; provided, however, that the
        Indenture Trustee may not sell or otherwise liquidate the Trust Estate
        following an Event of Default, other than an Event of Default described
        in Section 5.01(a) or (b), unless (A) the Holders of 100% of the
        Outstanding Amount of the Notes, voting as a single class, consent
        thereto (but excluding for purposes of such vote all Notes held or
        beneficially owned by NMAC, NARC II or any of their Affiliates, unless
        at such time all of the Notes are held or beneficially owned by NMAC,
        NARC II and their Affiliates), or (B) the proceeds of such sale or
        liquidation distributable to the Noteholders are sufficient to discharge
        in full all amounts then due and unpaid upon the Notes for principal and
        interest, or (C) the Indenture Trustee determines that the Trust Estate
        may not continue to provide sufficient funds on an ongoing basis to make
        all payments of principal of and interest on the Notes as they would
        have become due if the Notes had not been declared due and payable, and
        the Indenture Trustee obtains the consent of Holders of a 66 2/3% of the
        Outstanding Amount of the Notes, voting as a single class (but excluding
        for purposes of such vote all Notes held or beneficially owned by NMAC,
        NARC II or any of their Affiliates, unless at such time all of the Notes
        are held or beneficially owned by NMAC, NARC II and their Affiliates).
        In determining such sufficiency or insufficiency with respect to clause
        (B) and (C), the Indenture Trustee may, but need not, obtain and rely
        upon an opinion of an Independent investment banking or accounting firm
        of national reputation as to the feasibility of such proposed action and
        as to the sufficiency of the Trust Estate for such purpose.

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

        SECTION 5.05 Optional Preservation of the Receivables. If the Notes have
been declared to be due and payable under Section 5.02 following an Event of
Default and such declaration and its consequences have not been rescinded and
annulled, the Indenture Trustee may, unless otherwise directed by the Holders of
at least a majority of the Outstanding Amount of the Notes, voting as a single
class (excluding from such action and calculation any Notes held by NMAC, NARC
II or any of their Affiliates, unless at such time all of the Notes are held of
record or beneficially owned by NARC II, NMAC or any of their Affiliates), but
need not, elect

                                       30
<PAGE>   38

to maintain possession of the Trust Estate and direct the Issuer, Servicer and
Administrator not to take steps to liquidate the Receivables. It is the desire
of the parties hereto and the Noteholders that there be at all times sufficient
funds for the payment of principal of and interest on the Notes, and the
Indenture Trustee shall take such desire into account when determining whether
or not to maintain possession of the Trust Estate. In determining whether to
maintain possession of the Trust Estate, the Indenture Trustee may, but need
not, obtain and rely upon an opinion of an Independent investment banking or
accounting firm of national reputation as to the feasibility of such proposed
action and as to the sufficiency of the Trust Estate for such purpose.

        SECTION 5.06 Limitation of Suits. No Holder of any Note shall have any
right to institute any Proceeding, judicial or otherwise, with respect to this
Indenture or for the appointment of a receiver or trustee, or for any other
remedy hereunder unless such Holder has previously given written notice to the
Indenture Trustee of a continuing Event of Default, and:

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

        (b) the Holders of not less than 25% of the Outstanding Amount of the
Notes, voting as a single class (excluding for such purpose the outstanding
principal amount of any Notes held of record or beneficially owned by NARC II,
NMAC or any of their Affiliates, unless at such time all of the Notes are held
of record or beneficially owned by NARC II, NMAC or any of their Affiliates)
have made written request to the Indenture Trustee to institute such Proceeding
in respect of such Event of Default in its own name as Indenture Trustee
hereunder and have offered to the Indenture Trustee reasonable indemnity against
the costs, expenses and liabilities to be incurred in complying with such
request, the Indenture Trustee for 60 days after its receipt of such notice,
request and offer of indemnity has failed to institute such Proceedings, and no
direction inconsistent with that written request has been given to the Indenture
Trustee during the 60-day period by the holders of a majority in principal
amount of those outstanding Notes (or relevant class or classes of Notes).

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

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

        SECTION 5.07 Unconditional Rights of Noteholders To Receive Principal
and Interest. Notwithstanding any other provisions in this Indenture, the Holder
of any Note shall have the right, which is absolute and unconditional, to
receive payment of the principal of and interest, if any, on such Note on or
after the respective due dates thereof expressed in such Note and in this
Indenture (in each case with reference to the calculations to be made pursuant
to the

                                       31
<PAGE>   39

Sale and Servicing Agreement) and to institute suit for the enforcement of any
such payment, and such right shall not be impaired without the consent of such
Holder.

        SECTION 5.08 Restoration of Rights and Remedies. If the Indenture
Trustee or any Noteholder has instituted any Proceeding to enforce any right or
remedy under this Indenture and such Proceeding has been discontinued or
abandoned for any reason or has been determined adversely to the Indenture
Trustee or to such Noteholder, then and in every such case the Issuer, the
Indenture Trustee and the Noteholders shall, subject to any determination in
such Proceeding, be restored severally and respectively to their former
positions hereunder, and thereafter all rights and remedies of the Indenture
Trustee and the Noteholders shall continue as though no such Proceeding had been
instituted.

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

        SECTION 5.10 Delay or Omission Not a Waiver. No delay or omission of the
Indenture Trustee or any Holder of any Note to exercise any right or remedy
accruing upon any Default or Event of Default shall impair any such right or
remedy or constitute a waiver of any such Default or Event of Default or an
acquiescence therein. Every right and remedy given by this Article V or by law
to the Indenture Trustee or to the Noteholders may be exercised from time to
time, and as often as may be deemed expedient, by the Indenture Trustee or by
the Noteholders, as the case may be.

        SECTION 5.11 Control by Noteholders. The Holders of a majority of the
Outstanding Amount of the Notes, voting as a single class (excluding for such
purpose the outstanding principal amount of any Notes held of record or
beneficially owned by NARC II, NMAC or any of their Affiliates, unless at such
time all of the Notes are held of record or beneficially owned by NARC II, NMAC
or any of their Affiliates), shall have the right to direct the time, method and
place of conducting any Proceeding for any remedy available to the Indenture
Trustee with respect to the Notes or exercising any trust or power conferred on
the Indenture Trustee; provided that:

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

        (b) any direction to the Indenture Trustee to sell or liquidate the
Trust Estate shall be by Holders of Notes representing not less than the
applicable percentage of the Outstanding Amount of the Notes set forth in
Section 5.04(c)(iv); and

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

                                       32
<PAGE>   40

        Notwithstanding the rights of Noteholders set forth in this Section,
subject to Section 6.01, the Indenture Trustee need not take any action that it
determines might involve it in liability or might materially adversely affect
the rights of any Noteholders not consenting to such action.

        SECTION 5.12 Waiver of Past Defaults. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.02 or the
liquidation or sale of the Trust Estate pursuant to Section 5.04, the Holders of
a majority of the Outstanding Amount of the Notes, voting as a single class
(excluding for such purposes the outstanding principal amount of any Notes held
of record or beneficially owned by NMAC, NARC II or any of their Affiliates,
unless at such time all of the Notes are held of record or beneficially owned by
NARC II, NMAC or any of their Affiliates) may waive any past Default or Event of
Default and its consequences except a Default or Event of Default in (a) the
deposit of collections or other required amounts, (b) any required payment from
amounts held in Accounts in respect of amounts due on the Notes, (c) payment of
principal or interest on the Notes, or (d) an Event of Default in respect of a
covenant or provision hereof that cannot be modified or amended without the
consent of the Holder of each Note. In the case of any such waiver, the Issuer,
the Indenture Trustee and the Holders of the Notes shall be restored to their
former positions and rights hereunder, respectively.

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

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

        SECTION 5.14 Waiver of Stay or Extension Laws. The Issuer covenants (to
the extent that it may lawfully do so) that it will not at any time insist upon,
or plead or in any manner whatsoever, claim or take the benefit or advantage of,
any stay or extension law wherever enacted, now or at any time hereafter in
force, that may affect the covenants or the performance of this Indenture; and
the Issuer (to the extent that it may lawfully do so) hereby expressly waives
all benefit or advantage of any such law, and covenants that it will not hinder,

                                       33
<PAGE>   41

delay or impede the execution of any power herein granted to the Indenture
Trustee, but will suffer and permit the execution of every such power as though
no such law had been enacted.

        SECTION 5.15 Action on Notes. The Indenture Trustee's right to seek and
recover judgment on the Notes or under this Indenture shall not be affected by
the seeking, obtaining or application of any other relief under or with respect
to this Indenture. Neither the lien of this Indenture nor any rights or remedies
of the Indenture Trustee or the Noteholders shall be impaired by the recovery of
any judgment by the Indenture Trustee against the Issuer or by the levy of any
execution under such judgment upon any portion of the Trust Estate or upon any
of the assets of the Issuer. Any money or property collected by the Indenture
Trustee shall be applied in accordance with Section 5.04(a).

        SECTION 5.16 Performance and Enforcement of Certain Obligations.

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

        (b) If an Event of Default has occurred and is continuing, the Indenture
Trustee may, and at the direction (which direction shall be in writing or by
telephone, confirmed in writing promptly thereafter) of the Holders of a
majority of the Outstanding Amount of the Notes, voting as a single class
(excluding for such purposes the outstanding principal amount of any Notes held
of record or beneficially owned by NMAC, NARC II or any of their Affiliates,
unless at such time all of the Notes are held of record or beneficially owned by
NARC II, NMAC or any of their Affiliates), shall, exercise all rights, remedies,
powers, privileges and claims of the Issuer against the Seller or the Servicer
under or in connection with the Sale and Servicing Agreement or the Purchase
Agreement, or against the Administrator under the Administration Agreement,
including the right or power to take any action to compel or secure performance
or observance by the Seller, the Servicer or the Administrator, of each of their
obligations to the Issuer thereunder and to give any consent, request, notice,
direction, approval, extension, or waiver thereunder and any right of the Issuer
to take such action shall be suspended.

                                   ARTICLE VI
                              The Indenture Trustee

        SECTION 6.01 Duties of Indenture Trustee. The Indenture Trustee, both
prior to and after the occurrence of a Servicer Default under the Sale and
Servicing Agreement,

                                       34
<PAGE>   42

undertakes to perform such duties and only such duties as are specifically set
forth in this Indenture.

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

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

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

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

               (iii) the Indenture Trustee shall not be personally liable with
        respect to any action taken, suffered or omitted to be taken in good
        faith in accordance with the direction of (i) the Holders of at least a
        majority of the Outstanding Amount of the Notes, voting as a single
        class (excluding for such purposes the outstanding principal amount of
        any Notes held of record or beneficially owned by NARC II, NMAC or any
        of their Affiliates, unless at such time all of the Notes are held of
        record or beneficially owned by NARC II, NMAC or any of their
        Affiliates), relating to the time, method and place of conducting any
        proceeding for any remedy available to the Indenture Trustee, or
        exercising any trust or power conferred upon the Indenture Trustee under
        this Indenture.

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

       (d) All information obtained by the Indenture Trustee regarding the
Obligors and the Receivables contained in the Trust, whether upon the exercise
of its rights under this Indenture or

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<PAGE>   43

otherwise, shall be maintained by the Indenture Trustee in confidence and shall
not be disclosed to any other Person, unless such disclosure is required by any
applicable law or regulation or pursuant to subpoena.

        (e) If (i) pursuant to Section 3.02 of the Sale and Servicing Agreement,
a Responsible Officer of the Indenture Trustee discovers that a representation
or warranty with respect to a Receivable was incorrect as of the time specified
with respect to such representation and warranty and such incorrectness
materially and adversely affects such Receivable, or (ii) pursuant to Section
4.06 of the Sale and Servicing Agreement, a Responsible Officer of the Indenture
Trustee discovers that a covenant of the Servicer has been breached with respect
to a Receivable that would materially and adversely affect such Receivable, the
Indenture Trustee shall give prompt written notice to the Servicer and the Owner
Trustee of such incorrectness.

        SECTION 6.02 Rights of Indenture Trustee.

        (a) Except as otherwise provided in Section 6.01:

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

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

               (iii) the Indenture Trustee shall be under no obligation to
        exercise any of the rights or powers vested in it by this Indenture or
        the Sale and Servicing Agreement, or to institute, conduct or defend any
        litigation under this Indenture, or in relation to this Indenture or the
        Sale and Servicing Agreement, at the request, order or direction of any
        of the Noteholders pursuant to the provisions of this Indenture or the
        Sale and Servicing Agreement, unless such Noteholders shall have offered
        to the Indenture Trustee reasonable security or indemnity against the
        costs, expenses and liabilities that may be incurred therein or thereby;

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

               (v) the Indenture Trustee shall not be bound to recalculate,
        reverify, or make any investigation into the facts of matters stated in
        any resolution, certificate, statement, instrument, opinion, report,
        notice, request, consent, order, approval, bond or other paper or
        document, unless requested in writing to do so by Holders of Notes
        evidencing not less than 25% of the aggregate Outstanding Amount of the
        Notes; provided, however, that if the payment within a reasonable time
        to the Indenture Trustee of the costs, expenses or

                                       36
<PAGE>   44

        liabilities likely to be incurred by it in the making of such
        investigation is, in the opinion of the Indenture Trustee, not
        reasonably assured to the Indenture Trustee by the security afforded
        to it by the terms of this Indenture, the Indenture Trustee may
        require reasonable indemnity against such cost, expense or liability
        as a condition to so proceeding; the reasonable expense of every
        such examination shall be paid by the Administrator or, if paid by
        the Indenture Trustee, shall be reimbursed by the Administrator upon
        demand; and nothing in this clause shall derogate from the
        obligation of the Servicer to observe any applicable law prohibiting
        disclosure of information regarding the Obligors; and

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

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

        SECTION 6.03 Individual Rights of Indenture Trustee. The Indenture
Trustee in its individual or any other capacity may become the Holder,
beneficial owner or pledgee of Notes and may otherwise deal with the Issuer or
its Affiliates with the same rights it would have if it were not Indenture
Trustee. Any Paying Agent, Note Registrar, co-registrar or co-paying agent may
do the same with like rights. However, in so doing the Indenture Trustee must
comply with Sections 6.11 and 6.12.

       SECTION 6.04 Indenture Trustee's Disclaimer. The Indenture Trustee makes
no representations as to the validity or sufficiency of this Indenture or of the
Notes (other than the execution by the Indenture Trustee on behalf of the Trust
of, and the certificate of authentication on, the Notes), or of the
Certificates. The Indenture Trustee shall have no obligation to perform any of
the duties of the Servicer or the Administrator unless explicitly set forth in
this Indenture. The Indenture Trustee shall at no time have any responsibility
or liability for or with respect to the legality, validity and enforceability of
the Notes or any Receivable, any ownership interest in any Financed Vehicle, or
the maintenance of any such ownership interest, or for or with respect to the
efficacy of the Trust or its ability to generate the payments to be distributed
to Noteholders under this Indenture, including without limitation the validity
of the assignment of the Receivables to the Trust or of any intervening
assignment; the existence, condition, location and ownership of any Receivable
or Financed Vehicle; the existence and enforceability of any physical damage or
credit life or credit disability insurance; the existence and contents of any
retail installment sales contract or any computer or other record thereof; the
completeness of any retail installment sales contract; the performance or
enforcement of any retail installment sales contract; the compliance by the
Issuer with any covenant or the breach by the Issuer, Seller or Servicer of any
warranty or representation made under this Indenture or in any Basic Document or
other related document and the accuracy of any such warranty or representation
prior to the Indenture Trustee's receipt of notice or other discovery of any
noncompliance therewith or any breach thereof; the acts or omissions of the
Issuer, Seller or the Servicer; or any action by the Indenture Trustee taken at
the instruction of the Servicer, provided, however, that the foregoing shall not
relieve the Indenture Trustee of its obligation to perform its duties under this
Indenture. Except with respect to a claim based on the failure of the Indenture
Trustee to perform its duties under this Indenture or based on the Indenture
Trustee's willful misconduct, bad faith or

                                       37
<PAGE>   45

negligence, no recourse shall be had for any claim based on any provision of
this Indenture, the Notes or Certificates or assignment thereof against the
institution serving as the Indenture Trustee in its individual capacity. The
Indenture Trustee shall not have any personal obligation, liability or duty
whatsoever to any Noteholder or any other Person with respect to any such claim,
and any such claim shall be asserted solely against the Trust or any indemnitor
who shall furnish indemnity as provided in this Indenture. The Indenture Trustee
shall not be accountable for the use or application by the Issuer of any of the
Notes or of the proceeds of such Notes, or for the use or application of any
funds paid to the Servicer in respect of the Notes.

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

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

        SECTION 6.07 Compensation and Indemnity. The Issuer shall cause the
Servicer to pay to the Indenture Trustee from time to time reasonable
compensation for its services. The Indenture Trustee's compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Issuer
shall cause the Servicer to reimburse the Indenture Trustee for all reasonable
out-of-pocket expenses incurred or made by it, including costs of collection, in
addition to the compensation for its services. Such expenses shall include the
reasonable compensation and expenses, disbursements and advances of the
Indenture Trustee's agents, counsel, accountants and experts. The Administrator
shall indemnify or shall cause the Servicer to indemnify the Indenture Trustee
against any and all loss, liability or expense (including reasonable attorneys'
fees) incurred by it in connection with the administration of this trust and the
performance of its duties hereunder. The Indenture Trustee shall notify the
Administrator and the Servicer promptly of any claim for which it may seek
indemnity. Failure by the Indenture Trustee to so notify the Administrator and
the Servicer shall not relieve the Administrator or the Servicer of its
obligations hereunder. The Administrator shall defend or shall cause the
Servicer to defend any such claim, and the Indenture Trustee may have separate
counsel and the Administrator shall pay or shall cause the Servicer to pay the
fees and expenses of such counsel. Neither the Administrator nor the Servicer
need reimburse any expense or indemnify against any loss, liability or expense
incurred by the Indenture Trustee through the Indenture Trustee's own willful
misconduct, negligence or bad faith.

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<PAGE>   46

        The Administrator's payment obligations to the Indenture Trustee
pursuant to this Section shall survive the discharge of this Indenture. When the
Indenture Trustee incurs expenses after the occurrence of a Default specified in
Section 5.01(f) or (g) with respect to the Issuer, the expenses are intended to
constitute expenses of administration under Title 11 of the United States Code
or any other applicable federal or state bankruptcy, insolvency or similar law.

        SECTION 6.08 Replacement of Indenture Trustee. The Indenture Trustee may
resign at any time by providing written notice of its resignation to the Issuer.
The Administrator may remove the Indenture Trustee if:

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

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

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

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

        If the Indenture Trustee resigns or is removed or if a vacancy exists in
the office of Indenture Trustee for any reason (the Indenture Trustee in such
event being referred to herein as the retiring Indenture Trustee), the Servicer
shall promptly appoint a successor Indenture Trustee. No resignation or removal
of the Indenture Trustee and no appointment of a successor Indenture Trustee
shall become effective until the acceptance of appointment by the successor
Indenture Trustee pursuant to this Section 6.08.

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

        If a successor Indenture Trustee does not take office within 30 days
after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee, the Administrator or the Holders of a majority in Outstanding
Amount of the Notes may petition any court of competent jurisdiction for the
appointment of a successor Indenture Trustee.

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

        Notwithstanding the replacement of the Indenture Trustee pursuant to
this Section, the Issuer's and the Administrator's obligations under Section
6.07 shall continue for the benefit of the retiring Indenture Trustee.
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<PAGE>   47

        SECTION 6.09 Successor Indenture Trustee by Merger. If the Indenture
Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets to, another Person, the
resulting, surviving or transferee corporation without any further act shall be
the successor Indenture Trustee if such surviving Person or transferee
corporation or banking shall be otherwise qualified and eligible under Section
6.11. The Indenture Trustee shall provide the Issuer, the Servicer and the
Rating Agencies reasonable prior written notice of any such transaction.

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

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

        (a) Notwithstanding any other provisions of this Indenture, at any time,
for the purpose of meeting any legal requirement of any jurisdiction in which
any part of the Trust Estate may at the time be located, the Indenture Trustee
shall have the power and may execute and deliver all instruments to appoint one
or more Persons to act as a co-trustee or co-trustees, or separate trustee or
separate trustees, of all or any part of the Trust, and to vest in such Person
or Persons, in such capacity and for the benefit of the Noteholders, such title
to the Trust Estate, or any part hereof, and, subject to the other provisions of
this Section, such powers, duties, obligations, rights and trusts as the
Indenture Trustee may consider necessary or desirable. No co-trustee or separate
trustee hereunder shall be required to meet the terms of eligibility as a
trustee under Section 6.11 and no notice to Noteholders of the appointment of
any co-trustee or separate trustee shall be required under Section 6.08 hereof.

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

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

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<PAGE>   48

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

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

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

        (d) Any separate trustee or co-trustee may at any time constitute the
Indenture Trustee, its agent or attorney-in-fact with full power and authority,
to the extent not prohibited by law, to do any lawful act under or in respect of
this Agreement on its behalf and in its name. If any separate trustee or
co-trustee shall die, become incapable of acting, resign or be removed, all of
its estates, properties, rights, remedies and trusts shall vest in and be
exercised by the Indenture Trustee, to the extent permitted by law, without the
appointment of a new or successor trustee.

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

      SECTION 6.12 Preferential Collection of Claims Against Issuer. The
Indenture Trustee shall comply with TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). An Indenture Trustee who has
resigned or been removed shall be subject to TIA Section 311(a) to the extent
indicated.

        SECTION 6.13 Acknowledgement by Indenture Trustee of its Obligations
Under the Sale and Servicing Agreement. The Indenture Trustee hereby agrees and
consents to the provisions of the Sale and Servicing Agreement applicable to it
(including, without limitation, Sections 5.06, 5.07, 5.09 thereof) and agrees to
be bound by such provisions.

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<PAGE>   49

                                   ARTICLE VII
                         Noteholders' Lists and Reports

        SECTION 7.01 Note Registrar To Furnish Names and Addresses of
Noteholders. The Note Registrar shall furnish or cause to be furnished to the
Indenture Trustee, the Owner Trustee, the Servicer or the Administrator, within
15 days after receipt by the Note Registrar of a written request therefrom, a
list of the names and addresses of the Noteholders of any Class as of the most
recent Record Date. If three or more Noteholders, or one or more Holders
evidencing not less than 25% of the Outstanding Amount of the Notes (hereinafter
referred to as "Applicants"), apply in writing to the Indenture Trustee, and
such application states that the Applicants desire to communicate with other
Noteholders with respect to their rights under this Indenture or under the Notes
and such application is accompanied by a copy of the communication that such
Applicants propose to transmit, then the Indenture Trustee shall, within five
Business Days after the receipt of such application, afford such Applicants
access, during normal business hours, to the current list of Noteholders. Such
Indenture Trustee may elect not to afford the requesting Noteholders access to
the list of Noteholders if it agrees to mail the desired communication by proxy,
on behalf of and at the expense of the requesting Noteholders, to all
Noteholders. Every Noteholder, by receiving and holding a Note, agrees with the
Indenture Trustee and the Issuer that none of the Indenture Trustee, the Owner
Trustee, the Issuer, the Servicer or the Administrator shall be held accountable
by reason of the disclosure of any such information as to the names and
addresses of the Noteholders under this Indenture, regardless of the source from
which such information was derived.

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

        SECTION 7.02 Preservation of Information; Communications to Noteholders.

        (a) The Indenture Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Holders of Notes
contained in the most recent list furnished to the Indenture Trustee as provided
in Section 7.01 and the names and addresses of Holders of Notes received by the
Indenture Trustee in its capacity as Note Registrar. The Indenture Trustee may
destroy any list furnished to it as provided in such Section 7.01 upon receipt
of a new list so furnished.

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

        (c) The Issuer, the Indenture Trustee and the Note Registrar shall have
the protection of TIA Section 3.12(c).

                                       42
<PAGE>   50

        SECTION 7.03 Reports by Issuer.

        (a)    The Issuer shall:

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

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

               (iii) supply to the Indenture Trustee (and the Indenture Trustee
        shall transmit by mail to all Noteholders described in TIA Section
        313(c)) such summaries of any information, documents and reports
        required to be filed by the Issuer pursuant to clauses (i) and (ii) of
        this Section 7.03(a) and by rules and regulations prescribed from time
        to time by the Commission.

        (b) Unless the Issuer otherwise determines, the fiscal year of the
Issuer shall end on March 31 of each year.

        SECTION 7.04 Reports by Indenture Trustee. If required by TIA Section
313(a), within 60 days after each anniversary of the Closing Date beginning with
November 15, 2001, the Indenture Trustee shall mail to each Noteholder as
required by TIA Section 313(c) a brief report dated as of such date that
complies with TIA Section 313(a). The Indenture Trustee also shall comply with
TIA Section 313(b).

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

                                  ARTICLE VIII
                      Accounts, Disbursements and Releases

      SECTION 8.01 Collection of Money. Except as otherwise expressly provided
herein, the Indenture Trustee may demand payment or delivery of, and shall
receive and collect, directly and without intervention or assistance of any
fiscal agent or other intermediary, all money and other property payable to or
receivable by the Indenture Trustee pursuant to this Indenture. The Indenture
Trustee shall apply all such money received by it as provided in this Indenture.
Except as otherwise expressly provided in this Indenture, if any default occurs
in the making of any payment or performance under any agreement or instrument
that is part of the Trust Estate, the Indenture Trustee may take such action as
may be appropriate to enforce such

                                       43
<PAGE>   51

payment or performance, including the institution and prosecution of appropriate
Proceedings. Any such action shall be without prejudice to any right to claim a
Default or Event of Default under this Indenture and any right to proceed
thereafter as provided in Article V.

        SECTION 8.02  Accounts.

        (a) On or prior to the Closing Date, (i) the Issuer shall cause the
Servicer to establish and maintain, in the name of the Indenture Trustee, for
the benefit of the Noteholders and, to the extent set forth herein, the
Certificateholders, the Collection Account as provided in Section 5.01 of the
Sale and Servicing Agreement and (ii) the Issuer will establish and maintain
with the Securities Intermediary and pledge to the Indenture Trustee for the
benefit of the Noteholders the Yield Supplement Account in the name of the
Indenture Trustee pursuant to the Yield Supplement Agreement as provided in
Section 5.08 of the Sale and Servicing Agreement and the Securities Account
Control Agreement.

        (b) On or prior to the Closing Date, the Issuer will cause the Seller
to, pursuant to the Securities Account Control Agreement, establish and maintain
with the Securities Intermediary in the name of the Indenture Trustee, for the
benefit of the Noteholders, the Reserve Account as provided in Section 5.07 of
the Sale and Servicing Agreement.

        (c) The Indenture Trustee shall transfer all amounts remaining on
deposit in the Collection Account on the Distribution Date on which the Notes of
all Classes have been paid in full (or substantially all of the Trust Estate is
otherwise released from the lien of this Indenture) to the Trust Collection
Account and shall take all necessary or appropriate actions to transfer all of
its right, title and interest in the Collection Account, all funds or
investments held therein and all proceeds thereof, whether or not on behalf of
the Securityholders, to the Owner Trustee for the benefit of the
Certificateholders, subject to the limitations set forth herein with respect to
amounts held for payment to Noteholders that do not promptly deliver a Note for
payment on such Distribution Date.

        (d) The Indenture Trustee shall transfer all amounts remaining on
deposit in the Yield Supplement Account on the Distribution Date on which the
Notes of all Classes have been paid in full (or substantially all of the Trust
Estate is otherwise released from the lien of this Indenture) to the Owner
Trustee for the benefit of the Certificateholders and shall take all necessary
or appropriate actions to transfer all of its right, title and interest in the
Yield Supplement Account, all funds or investments held therein and all proceeds
thereof, whether or not on behalf of the Securityholders, to the Owner Trustee
for the benefit of the Certificateholders, which amounts the Owner Trustee shall
deposit into the Trust Collection Account, subject to the limitations set forth
herein with respect to amounts held for payment to Noteholders that do not
promptly deliver a Note for payment on such Distribution Date.

        SECTION 8.03  General Provisions Regarding Accounts.

        (a) So long as no Default or Event of Default shall have occurred and be
continuing, all or a portion of the funds in the Collection Account shall be
invested in Eligible Investments and reinvested by the Indenture Trustee at the
written direction of the Servicer, subject to the provisions of Section 5.01 of
the Sale and Servicing Agreement. All income or other gain from

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<PAGE>   52

investments of moneys deposited in the Collection Account shall be deposited by
the Indenture Trustee in the Collection Account and paid to the Servicer as
servicing compensation on any Business Day on or after which such amount is
deposited in the Collection Account, and any loss resulting from such
investments shall be charged to such account. The Servicer will not direct the
Indenture Trustee, and the Issuer shall cause the Servicer not, to make any
investment of any funds or to sell any investment held in the Collection Account
unless the security interest Granted and perfected in such account will continue
to be perfected in such investment or the proceeds of such sale, in either case
without any further action by any Person, and, in connection with any direction
to the Indenture Trustee to make any such investment or sale, if requested by
the Indenture Trustee, the Servicer shall deliver to the Indenture Trustee an
Opinion of Counsel, acceptable to the Indenture Trustee, to such effect.

      (b) So long as no Default or Event of Default shall have occurred and be
continuing, all or a portion of the funds in the Reserve Account and the Yield
Supplement Account shall be invested in Eligible Investments and reinvested by
the Indenture Trustee at the written direction of the Servicer, subject to the
provisions of Section 5.07 and Section 5.08, respectively, of the Sale and
Servicing Agreement and the provisions of the Securities Account Control
Agreement. All income or other gain from investments of moneys deposited in the
Reserve Account shall be paid by the Indenture Trustee to the Seller on any
Business Day on or after which such amount is deposited in the Reserve Account.
All income or other gain from investments of moneys deposited in the Yield
Supplement Account shall be deposited into the Collection Account on each
Distribution Date. Subject to the right of the Indenture Trustee to make
withdrawals therefrom, as directed by the Servicer, for the purposes and in the
amounts set forth in Section 5.06 of the Sale and Servicing Agreement, the
Reserve Account and all funds held therein shall be the property of the Seller
and not the property of the Trust, the Owner Trustee or the Indenture Trustee.
The Seller will grant to the Indenture Trustee, for the benefit of the
Noteholders, a security interest in all funds (including Eligible Investments)
in the Reserve Account (including the Reserve Account Initial Deposit) and the
proceeds thereof, and the Issuer will grant to the Indenture Trustee, for the
benefit of the Noteholders, a security interest in all funds (including Eligible
Investments) in the Yield Supplement Account and the proceeds thereof, and the
Indenture Trustee shall have all of the rights of a secured party under the UCC
with respect thereto; provided that all income from the investment of funds in
the Reserve Account, and the right to receive such income are retained by the
Seller and are not transferred, assigned or otherwise conveyed hereunder; and
provided, further, that amounts on deposit in the Yield Supplement Account in
excess of the Required Yield Supplement Amount will be deposited into the
Collection Account for distribution in accordance with the terms of Section
5.06(c) of the Sale and Servicing Agreement. The Servicer will not direct the
Indenture Trustee to make any investment of any funds or to sell any investment
held in the Reserve Account or the Yield Supplement Account unless the security
interest granted and perfected in such account will continue to be perfected in
such investment or the proceeds of such sale, in either case without any further
action by any Person, and, in connection with any direction to the Indenture
Trustee to make any such investment or sale, if requested by the Indenture
Trustee, the Servicer shall deliver to the Indenture Trustee an Opinion of
Counsel, acceptable to the Indenture Trustee, to such effect.

        (c) Subject to Section 6.01(c), the Indenture Trustee shall not in any
way be held liable by reason of any insufficiency in the Collection Account, the
Reserve Account or the Yield

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<PAGE>   53

Supplement Account resulting from any loss on any Eligible Investment included
therein at the direction of the Servicer, except for losses attributable to the
Indenture Trustee's failure to make payments on such Eligible Investments issued
by the Indenture Trustee, in its commercial capacity as principal obligor and
not as trustee, in accordance with the terms thereof.

        (d) If (i) the Servicer shall have failed to give investment directions
for any funds on deposit in the Collection Account, the Reserve Account or the
Yield Supplement Account, to the Indenture Trustee by 5:00 p.m. Eastern Time (or
such other time as may be agreed by the Servicer and Indenture Trustee) on any
Business Day or (ii) a Default or Event of Default shall have occurred and be
continuing with respect to the Notes but the Notes shall not have been declared
due and payable pursuant to Section 5.02 or (iii) if such Notes shall have been
declared due and payable following an Event of Default, amounts collected or
receivable from the Trust Estate are being applied in accordance with Section
5.05 as if there had not been such a declaration, then the Indenture Trustee
shall, to the fullest extent practicable, invest and reinvest funds in the
Accounts in one or more Eligible Investments specified in clauses (i), (iv) or
(vi) of the definition of Eligible Investments provided in the Sale and
Servicing Agreement. If the Indenture Trustee invests and reinvests funds in the
Reserve Account or the Yield Supplement Account pursuant to clause (ii) or
clause (iii) above, the Indenture Trustee shall issue a prohibition notice to
the securities intermediary as provided in the Securities Account Control
Agreement. If the Default or Event of Default that caused the Indenture Trustee
to assume control over the investment of funds in the Reserve Account and Yield
Supplement Account has been waived and the acceleration, if any, of the Notes
has been rescinded, the Indenture Trustee shall issue a rescission of
prohibition notice to the securities intermediary as provided in the Securities
Account Control Agreement.

        SECTION 8.04 Release of Trust Estate.

      (a) Subject to the payment of its fees and expenses pursuant to Section
6.07, the Indenture Trustee may, and when required by the provisions of this
Indenture shall, execute instruments to release property from the lien of this
Indenture, or convey the Indenture Trustee's interest in the same, in a manner
and under circumstances that are not inconsistent with the provisions of this
Indenture. No party relying upon an instrument executed by the Indenture Trustee
as provided in this Article VIII shall be bound to ascertain the Indenture
Trustee's authority, inquire into the satisfaction of any conditions precedent
or see to the application of any moneys.

      (b) The Indenture Trustee shall, at such time as there are no Notes
outstanding and all sums due the Indenture Trustee pursuant to Section 6.07 have
been paid, release any remaining portion of the Trust Estate that secured the
Notes from the lien of this Indenture and release to or to the order of the
Issuer, or, in the case of the Reserve Account or the Yield Supplement Account,
to the Seller, any funds entitled thereto then on deposit in the Collection
Account, the Reserve Account and the Yield Supplement Account, as the case may
be. The Indenture Trustee shall release property from the lien of this Indenture
pursuant to this Section 8.04(b) only upon receipt of an Issuer Request
accompanied by an Officer's Certificate and (if required by the TIA) Independent
Certificates in accordance with TIA Sections 314(c) and 314(d)(1) meeting the
applicable requirements of Section 11.01.

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<PAGE>   54

        SECTION 8.05 Release of Receivables Upon Purchase by the Seller or the
Servicer. (a) Upon repurchase of any Receivable by the Seller pursuant to
Section 3.02 of the Sale and Servicing Agreement or any purchase of any
Receivable by the Servicer pursuant to Section 4.06 or Section 9.01 of the Sale
and Servicing Agreement, the Indenture Trustee, on behalf of the Noteholders,
shall, without further action, be deemed to release from the Lien of this
Indenture such repurchased Receivable, all monies due or to become due with
respect thereto and all proceeds thereof and the other property with respect to
such Receivable, and all security and any documents relating thereto, and the
Seller or the Servicer, as applicable, shall thereupon own each such Receivable,
and all such related security and documents, free of any further obligation to
the Issuer, the Indenture Trustee or the Noteholders with respect thereto.

        (b) The Indenture Trustee shall execute such documents and instruments
and take such other actions as shall be reasonably requested by the Seller or
the Servicer, as the case may be, to effect the release of such Receivable
pursuant hereto and the assignment of such Receivable by the Issuer pursuant to
Section 9.02 of the Sale and Servicing Agreement.

        SECTION 8.06 Opinion of Counsel. The Indenture Trustee shall receive at
least seven days notice when requested by the Issuer to take any action pursuant
to Section 8.04(a), accompanied by copies of any instruments involved, and the
Indenture Trustee shall also require, except in connection with any action
contemplated by Section 8.04(b), as a condition to such action, an Opinion of
Counsel, in form and substance satisfactory to the Indenture Trustee, stating
the legal effect of any such action, outlining the steps required to complete
the same, and concluding that all conditions precedent to the taking of such
action have been complied with and such action will not materially and adversely
impair the security for the Notes or the rights of the Noteholders in
contravention of the provisions of this Indenture; provided, however, that such
Opinion of Counsel shall not be required to express an opinion as to the fair
value of the Trust Estate. Counsel rendering any such opinion may rely, without
independent investigation, on the accuracy and validity of any certificate or
other instrument delivered to the Indenture Trustee in connection with any such
action.

                                   ARTICLE IX
                             Supplemental Indentures

        SECTION 9.01  Supplemental Indentures Without Consent of Noteholders.

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

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

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<PAGE>   55

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

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

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

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

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

               (vii) to modify, eliminate or add to the provisions of this
        Indenture to such extent as shall be necessary to effect the
        qualification of this Indenture under the TIA or under any similar
        federal statute hereafter enacted and to add to this Indenture such
        other provisions as may be expressly required by the TIA.

        The Indenture Trustee is hereby authorized to join in the execution of
any such supplemental indenture and to make any further appropriate agreements
and stipulations that may be therein contained.

        (b) The Issuer and the Indenture Trustee, when authorized by an Issuer
Order, may, also without the consent of any of the Holders of the Notes, enter
into an indenture or indentures supplemental hereto for the purpose of adding
any provisions to, or changing in any manner or eliminating any of the
provisions of, this Indenture or of modifying in any manner the rights of the
Holders of the Notes under this Indenture; provided, however, that such action
shall not materially and adversely affect the interests of any Noteholder.

       SECTION 9.02 Supplemental Indentures with Consent of Noteholders. The
Issuer and the Indenture Trustee, when authorized by an Issuer Order, also may,
with prior notice to the Rating Agencies and with the consent of the Holders of
a majority of the Outstanding Amount of the Notes, voting as a single class
(excluding for such purpose the outstanding principal amount of any Notes held
of record or beneficially owned by NARC II, NMAC or any of their Affiliates,
unless at such time all of the Notes are held of record or beneficially owned by
NARC II, NMAC or any of their Affiliates), by Action of such Holders
delivered to the Issuer and the Indenture Trustee, enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to, or
changing in any manner or eliminating any of the provisions of, this Indenture
or of modifying in any manner the rights of the Holders of the Notes under this
Indenture;

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<PAGE>   56

provided, however, that no such supplemental indenture shall, without the
consent of the Holder of each Outstanding Note affected thereby:

        (a) change the due date of any installment of principal of or interest
on any Note, or reduce the principal amount thereof, the Interest Rate thereon
or redemption price therefor, or change any place of payment where, or the coin
or currency in which, any Note or the interest thereon is payable;

        (b) impair the right to institute suit for the enforcement of the
provisions of this Indenture requiring the application of funds available
therefor, as provided in Article V, to the payment of any such amount due on the
Notes on or after the respective due dates thereof;

        (c) reduce the percentage of the Outstanding Amount of the Notes, the
consent of the Holders of which is required for any such supplemental indenture,
or the consent of the Holders of which is required for any waiver of compliance
with certain provisions of this Indenture or certain defaults hereunder and
their consequences provided for in this Indenture;

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

        (e) reduce the percentage of the Outstanding Amount of the Notes
required to direct the Indenture Trustee to sell or liquidate the Trust Estate
if the proceeds of that sale would be insufficient to pay the principal amount
of and accrued but unpaid interest on the Notes pursuant to Section 5.04(c)(iv);

        (f) reduce any percentage required to amend the sections of the
Indenture that specify the applicable percentage of Outstanding Amount of the
Notes necessary to amend the Indenture; or

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

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

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

        Promptly after the execution by the Issuer and the Indenture Trustee of
any supplemental indenture pursuant to this Section, the Indenture Trustee shall
mail to the Holders of the Notes to which such amendment or supplemental
indenture relates a notice setting forth in general terms the substance of such
supplemental indenture. Any failure of the Indenture Trustee to mail such

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<PAGE>   57

notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.

        SECTION 9.03 Execution of Supplemental Indentures. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the modification thereby of the trusts created
by this Indenture, the Indenture Trustee shall be entitled to receive, and
subject to Sections 6.01 and 6.02, shall be fully protected in relying upon, an
Opinion of Counsel from external counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. The
Indenture Trustee may, but shall not be obligated to, enter into any such
supplemental indenture that affects the Indenture Trustee's own rights, duties,
liabilities or immunities under this Indenture or otherwise.

        SECTION 9.04 Effect of Supplemental Indenture. Upon the execution of any
supplemental indenture pursuant to the provisions hereof, this Indenture shall
be and shall be deemed to be modified and amended in accordance therewith with
respect to the Notes affected thereby, and the respective rights, limitations of
rights, obligations, duties, liabilities and immunities under this Indenture of
the Indenture Trustee, the Issuer and the Holders of the Notes shall thereafter
be determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments, and all the terms and conditions of any such
supplemental indenture shall be and be deemed to be part of the terms and
conditions of this Indenture for any and all purposes.

        SECTION 9.05 Conformity with Trust Indenture Act. Every amendment of
this Indenture and every supplemental indenture executed pursuant to this
Article IX shall conform to the requirements of the Trust Indenture Act as then
in effect so long as this Indenture shall then be qualified under the Trust
Indenture Act.

        SECTION 9.06 Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and if required by the Indenture Trustee shall,
bear a notation in form approved by the Indenture Trustee as to any matter
provided for in such supplemental indenture. If the Issuer or the Indenture
Trustee shall so determine, new Notes so modified as to conform, in the opinion
of the Indenture Trustee and the Issuer, to any such supplemental indenture may
be prepared and executed by the Issuer and authenticated and delivered by the
Indenture Trustee in exchange for Outstanding Notes.

                                    ARTICLE X
                                     Release

      SECTION 10.01 Optional Purchase of All Receivables. If the Servicer or any
successor to the Servicer shall notify the Owner Trustee and the Indenture
Trustee of its intention to exercise the option granted to it in Section 9.01 of
the Sale and Servicing Agreement to repurchase the outstanding Receivables
primarily comprising the Owner Trust Estate, then the Owner Trustee and the
Indenture Trustee shall give written notice thereof to each Securityholder and
the Rating Agencies as soon as practicable after their receipt of notice from
the Servicer. Upon deposit by the Servicer or any successor to the Servicer of
the amount necessary to effect such purchase of the corpus of the Owner Trust
Estate, the Indenture Trustee shall make the final

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distributions to the Noteholders and Certificateholders as set forth in Section
5.06 of the Sale and Servicing Agreement and shall promptly transfer all of its
right, title and interest in and to any amounts or investments remaining on
deposit in the Collection Account to the Owner Trustee, and in the Reserve
Account and the Yield Supplement Account to the Seller (in any event excluding
any portion thereof necessary to make distributions to Noteholders described in
Section 3.03), and release from the lien of this Indenture all of the remaining
Collateral. The Indenture Trustee shall execute, deliver and file all
agreements, certificates, instruments or other documents necessary or reasonably
requested by the Issuer in order to effect such release and the transfer to the
Issuer of the Collateral.

                                   ARTICLE XI
                                  Miscellaneous

        SECTION 11.01 Compliance Certificates and Opinions, etc.

        (a) Upon any application or request by the Issuer to the Indenture
Trustee to take any action under any provision of this Indenture, the Issuer
shall, upon written request therefor from the Indenture Trustee, furnish to the
Indenture Trustee (i) an Officer's Certificate stating that all conditions
precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with, (ii) an Opinion of Counsel stating that in the
opinion of such counsel all such conditions precedent, if any, have been
complied with, and (iii) (if required by the TIA) an Independent Certificate
from a firm of certified public accountants meeting the applicable requirements
of this Section, except that, in the case of any such application or request as
to which the furnishing of such documents is specifically required by any
provision of this Indenture, no such written request from the Indenture Trustee
need be furnished (and only such expressly required documents need be delivered
in connection therewith).

        (b) Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

               (i) a statement that each signatory of such certificate or
        opinion has read or has caused to be read such covenant or condition and
        the definitions herein relating thereto;

               (ii) a brief statement as to the nature and scope of the
        examination or investigation upon which the statements or opinions
        contained in such certificate or opinion are based;

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

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

        (c)(i) Prior to the deposit of any Collateral or other property or
securities with the Indenture Trustee that is to be made the basis for the
release of any property or securities subject

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<PAGE>   59

to the lien of this Indenture, the Issuer shall, in addition to any obligation
imposed in Section 11.01(a) or elsewhere in this Indenture, furnish to the
Indenture Trustee an Officer's Certificate certifying or stating the opinion of
each person signing such certificate as to the fair value (within 90 days of
such deposit) to the Issuer of the Collateral or other property or securities to
be so deposited.

               (ii) Whenever the Issuer is required to furnish to the Indenture
        Trustee an Officer's Certificate certifying or stating the opinion of
        any signatory thereof as to the matters described in clause (c)(i)
        above, the Issuer shall also deliver to the Indenture Trustee an
        Independent Certificate as to the same matters, if the fair value to the
        Issuer of the securities to be so deposited and of all other such
        securities made the basis of any such withdrawal or release since the
        commencement of the then-current calendar year of the Issuer, as set
        forth in the certificates delivered pursuant to clause (c)(i) above and
        this clause (c)(ii), is 10% or more of the Outstanding Amount of the
        Notes, but such a certificate need not be furnished with respect to any
        securities so deposited, if the fair value thereof to the Issuer as set
        forth in the related Officer's Certificate is less than $25,000 or less
        than one percent of the Outstanding Amount of the Notes.

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

               (iv) Notwithstanding Section 2.09 or any other provision of this
        Section, the Issuer may, without compliance with the requirements of the
        other provisions of this Section, (A) collect, liquidate, sell or
        otherwise dispose of Receivables and Financed Vehicles as and to the
        extent permitted or required by the Basic Documents and (B) make cash
        payments out of the Accounts as and to the extent permitted or required
        by the Basic Documents so long as the Issuer shall deliver to the
        Indenture Trustee every six months, commencing August 15, 2001, an
        Officer's Certificate of the Issuer stating that all such dispositions
        of Collateral that occurred during the preceding six calendar months
        were in the ordinary course of the Issuer's business and that the
        proceeds thereof were applied in accordance with the Basic Documents.

      SECTION 11.02 Form of Documents Delivered to Indenture Trustee. In any
case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may certify
or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion
as to such matters in one or several documents.

        Any certificate or opinion of an Authorized Officer of the Issuer may be
based, insofar as it relates to legal matters, upon a certificate or opinion of,
or representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or

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<PAGE>   60

opinion or representations with respect to the matters upon which such officer's
certificate or opinion is based are erroneous. Any such certificate of an
Authorized Officer or Opinion of Counsel may be based, insofar as it relates to
factual matters, upon a certificate or opinion of, or representations by, an
officer or officers of the Servicer, the Seller, the Issuer or the
Administrator, stating that the information with respect to such factual matters
is in the possession of the Servicer, the Seller, the Issuer or the
Administrator, unless such counsel knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to
such matters are erroneous.

        Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

        Whenever in this Indenture, in connection with any application or
certificate or report to the Indenture Trustee, it is provided that the Issuer
shall deliver any document as a condition of the granting of such application,
or as evidence of the Issuer's compliance with any term hereof, it is intended
that the truth and accuracy, at the time of the granting of such application or
at the effective date of such certificate or report (as the case may be), of the
facts and opinions stated in such document shall in such case be conditions
precedent to the right of the Issuer to have such application granted or to the
sufficiency of such certificate or report. The foregoing shall not, however, be
construed to affect the Indenture Trustee's right to rely upon the truth and
accuracy of any statement or opinion contained in any such document as provided
in Article VI.

        SECTION 11.03 Acts of Noteholders.

        (a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Noteholders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Noteholders in person or by agents
duly appointed in writing; and except as herein otherwise expressly provided
such action shall become effective when such instrument or instruments are
delivered to the Indenture Trustee, and, where it is hereby expressly required,
to the Issuer. Such instrument or instruments (and the action embodied therein
and evidenced thereby) are herein sometimes referred to as the "Action" of the
Noteholders signing such instrument or instruments. Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and (subject to Section 6.01) conclusive in
favor of the Indenture Trustee and the Issuer, if made in the manner provided in
this Section.

        (b) The fact and date of the execution by any person of any such
instrument or writing may be proved in any manner that the Indenture Trustee
deems sufficient.

        (c)    The ownership of Notes shall be proved by the Note Register.

        (d) Any request, demand, authorization, direction, notice, consent,
waiver or other action by the Holder of any Notes shall bind the Holder of every
Note issued upon the registration thereof or in exchange therefor or in lieu
thereof, in respect of anything done, omitted or suffered to be done by the
Indenture Trustee or the Issuer in reliance thereon, whether or not notation of
such action is made upon such Note.

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        SECTION 11.04 Notices to Indenture Trustee, Issuer and Rating Agencies.
Any request, demand, authorization, direction, notice, consent, waiver or Action
of Noteholders or other documents provided or permitted by this Indenture shall
be in writing and if such request, demand, authorization, direction, notice,
consent, waiver or Action of Noteholders is to be made upon, given or furnished
to or filed with:

        (a) the Indenture Trustee by any Noteholder or by the Issuer, it shall
be sufficient for every purpose hereunder if made, given, furnished or filed in
writing to or with the Indenture Trustee at its Corporate Trust Office, or

        (b) the Issuer by the Indenture Trustee or by any Noteholder, it shall
be sufficient for every purpose hereunder if in writing and mailed first-class,
postage prepaid to the Issuer addressed to: Nissan Auto Receivables 2001-A Owner
Trust, c/o Wilmington Trust Company, Rodney Square North, 1100 North Market
Street, Wilmington, Delaware 19890, Attention: Nissan Auto Receivables 2001-A
Owner Trust, with a copy to Nissan Motor Acceptance Corporation, 990 West 190th
Street, Torrance, California 90502, Attention: Secretary, or at any other
address previously furnished in writing to the Indenture Trustee by the Issuer
or the Administrator. The Issuer shall promptly transmit any notice received by
it from the Noteholders to the Indenture Trustee.

        Notices required to be given to the Rating Agencies by the Issuer, the
Indenture Trustee or the Owner Trustee shall be in writing, personally delivered
or mailed by certified mail, return receipt requested, to (i) in the case of
Moody's, at the following address: Moody's Investors Service, Inc., ABS
Monitoring Department, 99 Church Street, New York, New York 10007, and (ii) in
the case of Standard & Poor's, at the following address: Standard & Poor's
Ratings Services, a Division of the McGraw-Hill Companies Inc., 55 Water Street,
New York, New York 10041-0003, Attention: Asset Backed Surveillance Department,
or as to each of the foregoing, at such other address as shall be designated by
written notice to the other parties.

        SECTION 11.05 Notices to Noteholders; Waiver. Where this Indenture
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class, postage prepaid to each Noteholder affected by such
event, at his address as it appears on the Note Register, not later than the
latest date, and not earlier than the earliest date, prescribed for the giving
of such notice. In any case where notice to Noteholders is given by mail,
neither the failure to mail such notice nor any defect in any notice so mailed
to any particular Noteholder shall affect the sufficiency of such notice with
respect to other Noteholders, and any notice that is mailed in the manner herein
provided shall conclusively be presumed to have been duly given.

      Where this Indenture provides for notice in any manner, such notice may be
waived in writing by any Person entitled to receive such notice, either before
or after the event, and such waiver shall be the equivalent of such notice.
Waivers of notice by Noteholders shall be filed with the Indenture Trustee but
such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such a waiver.

        In case, by reason of the suspension of regular mail service as a result
of a strike, work stoppage or similar activity, it shall be impractical to mail
notice of any event to Noteholders

                                       54
<PAGE>   62

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

        Where this Indenture provides for notice to the Rating Agencies, failure
to give such notice shall not affect any other rights or obligations created
hereunder, and shall not under any circumstance constitute a Default or Event of
Default.

        SECTION 11.06 Alternate Payment and Notice Provisions. Notwithstanding
any provision of this Indenture or any of the Notes to the contrary, the Issuer
may enter into any agreement with any Holder of a Note providing for a method of
payment, or notice by the Indenture Trustee or any Paying Agent to such Holder,
that is different from the methods provided for in this Indenture for such
payments or notices. The Issuer will furnish to the Indenture Trustee a copy of
each such agreement and the Indenture Trustee will cause payments to be made and
notices to be given in accordance with such agreements.

        SECTION 11.07 Conflict with Trust Indenture Act. If any provision hereof
limits, qualifies or conflicts with another provision hereof that is required to
be included in this Indenture by any of the provisions of the Trust Indenture
Act, such required provision shall control.

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

        SECTION 11.08 Effect of Headings and Table of Contents. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

        SECTION 11.09 Successors and Assigns. All covenants and agreements in
this Indenture and the Notes by the Issuer shall bind its successors and
assigns, whether so expressed or not. All agreements of the Indenture Trustee in
this Indenture shall bind its successors, co-trustees and agents.

        SECTION 11.10 Severability. If any one or more of the covenants,
agreements, provisions or terms of this Indenture shall be for any reason
whatsoever held invalid or unenforceable in any jurisdiction, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Indenture and shall
in no way affect the validity or enforceability of the other provisions of this
Indenture or of the Notes or the Certificates or the rights of the Holders
thereof.

        SECTION 11.11 Benefits of Indenture. Nothing in this Indenture or in the
Notes, express or implied, shall give to any Person, other than the parties
hereto and their successors hereunder, and the Noteholders, and any other party
secured hereunder, and any other Person with an ownership interest in any part
of the Trust Estate, any benefit or any legal or equitable right, remedy or
claim under this Indenture.

                                       55
<PAGE>   63

        SECTION 11.12 Governing Law. This Indenture shall be governed by and
construed in accordance with the laws of the State of New York, without
reference to its conflict of law provisions (other than Section 5-1401 of the
General Obligations Law of the State of New York), and the obligations, rights
and remedies of the parties hereunder shall be determined in accordance with
such laws.

        SECTION 11.13 Counterparts. This Indenture may be executed
simultaneously in any number of counterparts, each of which shall be deemed to
be an original, and all of which shall constitute but one and the same
instrument.

        SECTION 11.14 Recording of Indenture. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense accompanied by an Opinion of Counsel
(which may be counsel to the Indenture Trustee or any other counsel reasonably
acceptable to the Indenture Trustee) to the effect that such recording is
necessary either for the protection of the Noteholders or any other Person
secured hereunder or for the enforcement of any right or remedy granted to the
Indenture Trustee under this Indenture.

        SECTION 11.15 Trust Obligation. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or
the Indenture Trustee on the Notes or Certificates or under this Indenture or
any certificate or other writing delivered in connection herewith or therewith,
against (i) the Indenture Trustee or the Owner Trustee in its individual
capacity, (ii) the Seller, any Certificateholder or other owner of a beneficial
interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
director, employee or agent of the Indenture Trustee or the Owner Trustee in its
individual capacity, any Certificateholder or other owner of a beneficial
interest in the Issuer, the Owner Trustee or the Indenture Trustee or of any
successor or assign of the Indenture Trustee or the Owner Trustee in its
individual capacity, except as any such Person may have expressly agreed (it
being understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or call owing to such entity. For all purposes of
this Indenture, in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of Article VI, VII and VIII of the Trust Agreement.

        SECTION 11.16 No Petition. The Indenture Trustee, by entering into this
Indenture, and each Noteholder, by accepting a Note, hereby covenant and agree
that they will not at any time file, join in any filing of, or cooperate or
encourage others to file against the Seller or the Issuer any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or state bankruptcy or similar
law, in connection with any obligations relating to the Notes, the Certificates
or any of the Basic Documents.

        SECTION 11.17 Inspection. The Issuer agrees that, on reasonable prior
notice, it will permit any representative of the Indenture Trustee, during the
Issuer's normal business hours, to examine all the books of account, records,
reports and other papers of the Issuer, to

                                       56
<PAGE>   64

make copies and extracts therefrom, to cause (at the expense of the requesting
party) such books to be audited by Independent certified public accountants, and
to discuss the Issuer's affairs, finances and accounts with the Issuer's
officers, employees, and Independent certified public accountants, all at such
reasonable times and as often as may be reasonably requested. The Indenture
Trustee shall and shall cause its representatives to hold in confidence all such
information except to the extent disclosure may be required by law (and all
reasonable applications for confidential treatment are unavailing) and except to
the extent that the Indenture Trustee may reasonably determine that such
disclosure is consistent with its obligations hereunder.

                                       57
<PAGE>   65

        IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused
this Indenture to be duly executed by their respective officers, thereunto duly
authorized and duly attested, all as of the day and year first above written.

                   NISSAN AUTO RECEIVABLES 2001-A OWNER TRUST

                                   By: WILMINGTON TRUST COMPANY,
                                       not in its individual capacity but
                                       solely as Owner Trustee

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

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

                                               By:     /s/  Marianna C. Stershic
                                                       -------------------------
                                               Name:   Marianna C. Stershic
                                               Title:  Vice-President

                                      S-1
<PAGE>   66

                                    EXHIBIT A

  (Form of Class A-1 Note, Class A-2 Note, Class A-3 Note, and Class A-4 Note)

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

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

        THIS NOTE IS NOT AN OBLIGATION OF, AND WILL NOT BE INSURED OR GUARANTEED
BY, ANY GOVERNMENTAL AGENCY OR NISSAN AUTO RECEIVABLES CORPORATION II, NISSAN
MOTOR ACCEPTANCE CORPORATION, NISSAN NORTH AMERICA, INC., NISSAN MOTOR CO.,
LTD., ANY TRUSTEE OR ANY OF THEIR AFFILIATES. THE PRINCIPAL AND INTEREST ON THIS
NOTE IS PAYABLE SOLELY FROM PAYMENTS ON THE RECEIVABLES AND AMOUNTS ON DEPOSIT
IN THE RESERVE ACCOUNT AND THE YIELD SUPPLEMENT ACCOUNT.

                                      A-1
<PAGE>   67

No._____                                                           $__________

                   NISSAN AUTO RECEIVABLES 2001-A OWNER TRUST

               CLASS [A-1][A-2][A-3][A-4] ___% ASSET BACKED NOTES

        Nissan Auto Receivables 2001-A Owner Trust, a business trust organized
and existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to ____________________,
or registered assigns, the principal sum of _______________ DOLLARS
($__________) payable on each Distribution Date in an aggregate amount, if any,
payable from the Collection Account in respect of the principal on the Class
[A-1][A-2][A-3][A-4] Notes pursuant to Section 3.01 of the Indenture dated as of
February 1, 2001 (the "Indenture"), between the Issuer and Wells Fargo Bank
Minnesota, National Association, as Indenture Trustee (the "Indenture Trustee")
and Sections 5.06(c) and (d) of the Sale and Servicing Agreement dated as of
February 1, 2001 among the Issuer, NARC II, as Seller, and NMAC, as Servicer
(which amounts shall be limited to the portion of Available Amounts specified in
such sections); provided, however, that the entire unpaid principal amount of
this Note shall be due and payable on the Distribution Date occurring in
____________________ (the "Class [A-1][A-2][A-3][A-4] Final Scheduled
Distribution Date"). Capitalized terms used but not defined herein have the
meanings ascribed thereto in the Indenture and the Sale and Servicing Agreement,
as the case may be.

        The Issuer will pay interest on this Note at the rate per annum shown
above on each Distribution Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note outstanding on the
preceding Distribution Date (after giving effect to all payments of principal
made on the preceding Distribution Date), subject to certain limitations
contained in Section 3.01 of the Indenture. Interest on this Note will accrue
for each Distribution Date, [during the period from (and including) the
Distribution Date during the calendar month preceding such Distribution Date (or
in the case of the first Distribution Date, from (and including) the Closing
Date to (but excluding) such Distribution Date)][during the period from (and
including) the 15th day of the preceding calendar month to (but excluding) the
15th day of the month in which such Distribution Date occurs]. Interest will be
computed on the basis specified in the Indenture for each Interest Period. Such
principal of and interest on this Note shall be paid in the manner specified on
the reverse hereof.

        The principal of and interest on this Note is payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

                                       A-2
<PAGE>   68

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

        Unless the certificate of authentication hereon has been executed by the
Indenture Trustee whose name appears below by manual signature, this Note shall
not be entitled to any benefit under the Indenture referred to on the reverse
hereof, or be valid or obligatory for any purpose.

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

Date:
      ----------------

                                   NISSAN AUTO RECEIVABLES 2001-A
                                   OWNER TRUST

                                   By: WILMINGTON TRUST COMPANY,
                                           not in its individual capacity but
                                           solely as Owner Trustee under the
                                           Trust Agreement

                                   By: ___________________________________
                                          Authorized Signatory

                                      A-3
<PAGE>   69

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Date:
      ----------------

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

                             By: _______________________________
                                    Authorized Signatory

                                      A-4
<PAGE>   70

        This Note is one of a duly authorized issue of Notes of the Issuer,
designated as [____]% Asset Backed Notes, Class [A-1][A-2][A-3][A-4] (herein
called the "Class [A-1][A-2][A-3][A-4] Notes"), all issued under the Indenture,
to which Indentures and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights and obligations thereunder of the
Issuer, the Indenture Trustee and the Holders of the Notes. The Class
[A-1][A-2][A-3][A-4] Notes are subject to all terms of the Indenture.

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

        Principal of the Class [A-1][A-2][A-3][A-4] Notes will be payable on
each Distribution Date in an amount described in the Indenture. "Distribution
Date" means the fifteenth day of each month, or, if any such date is not a
Business Day, the next succeeding Business Day, commencing February 15, 2001.

        Notwithstanding the foregoing, the entire unpaid principal amount of the
Notes shall be due and payable on the date on which an Event of Default shall
have occurred and be continuing and the Indenture Trustee or the Holders of a
majority of the Outstanding Amount of the Notes, voting as a single class
(excluding for such purpose the outstanding principal amount of any Notes held
of record or beneficially owned by NARC II, NMAC or any of their Affiliates,
unless at such time all of the Notes are held of record or beneficially owned by
NARC II, NMAC or any of their Affiliates), have declared the Notes to be
immediately due and payable in the manner provided in Section 5.02 of the
Indenture or following the exercise by the Servicer of its option to purchase
the Receivables pursuant to Section 9.01 of the Sale and Servicing Agreement and
Section 10.01 of the Indenture. In case of an Event of Default, all interest and
principal payments will be made (1) first to the holders of the Class A-1 Notes,
until the outstanding principal balance of the Class A-1 Notes has been paid in
full, and (2) then to the holders of the Class A-2 Notes, the Class A-3 Notes
and the Class A-4 Notes on a pro rata basis (x) with respect to interest, based
on the respective aggregate amounts of interest due to these classes of notes
and (y) with respect to principal, based on the respective outstanding principal
balances of those classes of notes, until the outstanding principal balances of
those classes of notes have been paid in full. In case of the optional purchase
of the Receivables, all interest and principal payments on the Class
[A-1][A-2][A-3][A-4] Notes shall be made pro rata to the Class
[A-1][A-2][A-3][A-4] Noteholders entitled thereto.

        Payments of interest on this Note due and payable on each Distribution
Date, together with the installment of principal, if any, to the extent not in
full payment of this Note, shall be paid to the Person in whose name of such
Note (or one or more Predecessor Notes) is registered on the Record Date by wire
transfer in immediately available funds to the account designated by such
nominee, except for the final installment of principal payable with respect to
such Note on a Distribution Date or on the applicable Final Scheduled
Distribution Date, which shall be payable as provided below. Any reduction in
the principal amount of this Note (or any one or more Predecessor Notes)
effected by any payments made on any Distribution Date shall be binding upon all
future Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not noted
hereon. If funds are expected to be available, as provided in the Indenture, for
payment in full of the then remaining

                                      A-5

<PAGE>   71

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

        The Issuer shall pay interest on overdue installments of interest at the
Class [A-1][A-2][A-3][A-4] Rate to the extent lawful.

        As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered on the Note Register
upon surrender of this Note for registration of transfer at the office or agency
designated by the Issuer pursuant to the Indenture, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee as set forth in Section 2.04 of the Indenture, and thereupon
one or more new Notes of authorized denominations and in the same aggregate
principal amount will be issued to the designated transferee or transferees. No
service charge will be charged for any registration of transfer or exchange of
this Note, but the transferor may be required to pay a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with any
such registration of transfer or exchange.

        Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note, covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
the Indenture or any certificate or other writing delivered in connection
therewith, against (i) the Indenture Trustee or the Owner Trustee in its
individual capacity, (ii) the Seller or any owner of a beneficial interest in
the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director or
employee of the Indenture Trustee or the Owner Trustee in its individual
capacity, any holder of a beneficial interest in the Issuer, the Owner Trustee
or the Indenture Trustee or of any successor or assign of the Indenture Trustee
or the Owner Trustee in its individual capacity, except as any such Person may
have expressly agreed (it being understood that the Indenture Trustee and the
Owner Trustee have no such obligations in their individual capacity) and except
that any such partner, owner or beneficiary shall be fully liable, to the extent
provided by applicable law, for any unpaid consideration for stock, unpaid
capital contribution or failure to pay any installment or call owing to such
entity.

        The Holder of this Note by its acceptance hereof agrees that, except as
expressly provided in the Basic Documents, in the case of an Event of Default
under the Indenture, the Holder shall have no claim against any of the foregoing
for any deficiency, loss or claim therefrom; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement against,
the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Note.

      Each Noteholder or Note Owner, by acceptance of a Note or, in the case of
a Note Owner, a beneficial interest in a Note, covenants and agrees by accepting
the benefits of the Indenture that such Noteholder or Note Owner will not at any
time file, join in the filing of, or

                                   A-6
<PAGE>   72

cooperate with or encourage others to file against the Seller or the Issuer, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings
under any United States federal or state bankruptcy or similar law in connection
with any obligations relating to the Notes, the Indenture or the Basic
Documents.

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

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

        The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer and the Indenture Trustee, when authorized by an Issuer
Order, with prior notice to the Rating Agencies and with the consent of the
Holders of a majority of the Outstanding Amount of the Notes, voting as a single
class (excluding for such purpose the outstanding principal amount of any Notes
held of record or beneficially owned by NARC II, NMAC or any of their
Affiliates, unless at such time all of the Notes are held of record or
beneficially owned by NARC II, NMAC or any of their Affiliates). Section 5.12 of
the Indenture also contains provisions permitting the Holders of a majority of
the Outstanding Amount of the Notes, voting as a single class (excluding for
such purpose the outstanding principal amount of any Notes held of record or
beneficially owned by NARC II, NMAC or any of their Affiliates, unless at such
time all of the Notes are held of record or beneficially owned by NARC II, NMAC
or any of their Affiliates), on behalf of the Holders of all the Notes, to waive
compliance by the Issuer with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Note (or any one or more Predecessor Notes) shall
be conclusive and binding upon such Holder and upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof whether or not notation of such consent or
waiver is made upon this Note. The Indenture also permits the Indenture Trustee
to amend or waive certain terms and conditions set forth in the Indenture
without the consent of Holders of the Notes issued thereunder.

        The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

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

                                      A-7
<PAGE>   73

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

        This Note and the Indenture shall be construed in accordance with the
laws of the State of New York, without reference to its conflict of law
provisions (other than Section 5-1401 of the General Obligations Law of the
State of New York), and the obligations, rights and remedies of the parties
hereunder and thereunder shall be determined in accordance with such laws.

        No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place and rate, and in the coin or currency herein prescribed.

                                      A-8
<PAGE>   74

                                   ASSIGNMENT

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

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

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

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

Dated:               */
      ----------------

Signature Guaranteed:

                     */
----------------------

        */ NOTICE: The signature to this assignment must correspond with the
name of the registered owner as it appears on the face of the within Note in
every particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar, which requirements include membership or
participation in STAMP or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Securities Exchange Act of 1934, as amended.

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