Document:

<PAGE>

                                                                     Exhibit 4.2

         CONSECO FINANCE RECREATIONAL ENTHUSIAST CONSUMER TRUST 2000-A

                         SALE AND SERVICING AGREEMENT

                                     among

        CONSECO FINANCE RECREATIONAL ENTHUSIAST CONSUMER TRUST 2000-A
                                   as Issuer

                    CONSECO FINANCE SECURITIZATIONS CORP.
                                   as Seller

                                      and

                             CONSECO FINANCE CORP.
                           as Orginator and Servicer

                           Dated as of June 1, 2000
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                          Page
                                                                                          ----
<S>                                                                                       <C>
ARTICLE I      DEFINITIONS............................................................     1-1
     SECTION 1.01.  General...........................................................     1-1
     SECTION 1.02.  Specific Terms....................................................     1-1

ARTICLE II     TRANSFER OF CONTRACTS..................................................     2-1
     SECTION 2.01.  Transfer of Contracts.............................................     2-1
     SECTION 2.02.  Conditions to Acceptance by Owner Trustee.........................     2-1
     SECTION 2.03.  Conveyance of the Subsequent Contracts............................     2-3

ARTICLE III    REPRESENTATIONS AND WARRANTIES.........................................     3-1
     SECTION 3.01.  Representations and Warranties Regarding the Seller
                    and Originator and Covenants of the Originator....................     3-1
     SECTION 3.02.  Representations and Warranties Regarding Each Contract............     3-2
     SECTION 3.03.  Representations and Warranties Regarding the
                    Contracts in the Aggregate........................................     3-5
     SECTION 3.04.  Representations and Warranties Regarding the Contract Files.......     3-6
     SECTION 3.05.  Repurchase of Contracts for Breach of Representations
                    and Warranties....................................................     3-6
     SECTION 3.06.  Covenants Regarding the Seller and Class C Certificateholder......     3-7

ARTICLE IV     PERFECTION OF TRANSFER AND PROTECTION OF SECURITY INTERESTS............     4-1
     SECTION 4.01.  Custody...........................................................     4-1
     SECTION 4.02.  Filings...........................................................     4-2
     SECTION 4.03.  Name Change or Relocation.........................................     4-2
     SECTION 4.04.  Chief Executive Office............................................     4-2
     SECTION 4.05.  Costs and Expenses................................................     4-2

ARTICLE V      SERVICING OF CONTRACTS.................................................     5-1
     SECTION 5.01.  Responsibility for Contract Administration........................     5-1
     SECTION 5.02.  Standard of Care..................................................     5-1
     SECTION 5.03.  Records...........................................................     5-1
     SECTION 5.04.  Inspection; Computer Tape.........................................     5-1
     SECTION 5.05.  Collections.......................................................     5-2
     SECTION 5.06.  Enforcement.......................................................     5-3
     SECTION 5.07.  Satisfaction of Contracts.........................................     5-4
     SECTION 5.08.  Costs and Expenses................................................     5-4
     SECTION 5.09.  Maintenance of Insurance..........................................     5-4
     SECTION 5.10.  Repossession......................................................     5-5
     SECTION 5.11.  Commingling of Funds..............................................     5-6
     SECTION 5.12.  Retitling; Security Interests.....................................     5-6
     SECTION 5.13.  Servicer Advances.................................................     5-6
</TABLE>

                                      -i-
<PAGE>

<TABLE>
<S>                                                                                       <C>
     SECTION 5.14.  Monthly Reports; Certificate of Servicing Officer.................     5-6
     SECTION 5.15.  Annual Report of Accountants......................................     5-7
     SECTION 5.16.  Certain Duties of the Servicer Under the Trust Agreement..........     5-7
     SECTION 5.17.  Annual Statement as to Compliance; Notice of Servicer
                    Termination Event.................................................     5-7
     SECTION 5.18.  Maintenance of Security Interests in Products.....................     5-8
     SECTION 5.19.  Covenants, Representations, and Warranties of Servicer............     5-8
     SECTION 5.20.  Purchase of Contracts Upon Breach of Covenant.....................    5-10

ARTICLE VI     DISTRIBUTIONS; TRUST ACCOUNTS; STATEMENTS TO SECURITYHOLDERS...........     6-1
     SECTION 6.01.  Trust Accounts....................................................     6-1
     SECTION 6.02.  Collection Account Deposits.......................................     6-2
     SECTION 6.03.  Permitted Withdrawals.............................................     6-2
     SECTION 6.04.  Distributions.....................................................     6-3
     SECTION 6.05.  Statements to Securityholders.....................................     6-4
     SECTION 6.06.  Pre-Funding Account...............................................     6-6
     SECTION 6.07.  [Reserved]........................................................     6-6
     SECTION 6.08.  Reserve Account...................................................     6-7
     SECTION 6.09   Class B Reserve Account...........................................     6-7

ARTICLE VII    SERVICE TRANSFER.......................................................     7-1
     SECTION 7.01.  Event of Termination..............................................     7-1
     SECTION 7.02.  Transfer..........................................................     7-2
     SECTION 7.03.  Indenture Trustee to Act; Appointment of Successor................     7-2
     SECTION 7.04.  Notification to Securityholders...................................     7-3
     SECTION 7.05.  Effect of Transfer................................................     7-3
     SECTION 7.06.  Transfer of Collection Account....................................     7-4
     SECTION 7.07.  Limits on Liability...............................................     7-4
     SECTION 7.08.  Waiver of Past Defaults...........................................     7-4

ARTICLE VIII   TERMINATION............................................................     8-1
     SECTION 8.01.  Class C Certificateholder's Purchase Option; Auction Sale;
                    Accelerated Principal Distribution Amount.........................     8-1
     SECTION 8.02.  Liquidation or Sale of Trust Estate...............................     8-2

ARTICLE IX     INDEMNITIES............................................................     9-1
     SECTION 9.01.  Originator's Indemnities..........................................     9-1
     SECTION 9.02.  Liabilities to Obligors
     SECTION 9.03.  Servicer's Indemnities............................................     9-1
     SECTION 9.04.  Operation of Indemnities..........................................     9-2

ARTICLE X      MISCELLANEOUS..........................................................    10-1
     SECTION 10.01. Servicer Not to Assign Duties or Resign; Delegation
                    of Servicing Duties...............................................    10-1
     SECTION 10.02. Assignment or Delegation by Originator............................    10-1
</TABLE>

                                     -ii-
<PAGE>

<TABLE>
<S>                                                                                       <C>
     SECTION 10.03. Amendment.........................................................    10-2
     SECTION 10.04. Notices...........................................................    10-3
     SECTION 10.05. Merger and Integration............................................    10-4
     SECTION 10.06. Headings..........................................................    10-5
     SECTION 10.07. Governing Law.....................................................    10-5
     SECTION 10.08. Limitation of Liability...........................................    10-5
     SECTION 10.09. Seller's Charter; Residual Interests..............................    10-5
</TABLE>

Exhibit A -- Form of Assignment
Exhibit B -- Form of Certificate Regarding Repurchased Contracts
Exhibit C -- Form of Monthly Report
Exhibit D -- Form of Certificate of Servicing Officer
Exhibit E -- Form of Addition Notice
Exhibit F -- Form of Subsequent Transfer Instrument
Exhibit G -- Form of Officer's Certificate (Subsequent Transfer)
Exhibit H -- List of Initial Contracts

                                     -iii-
<PAGE>

     THIS SALE AND SERVICING AGREEMENT, dated as of June 1, 2000, among Conseco
Finance Recreational Enthusiast Consumer Trust 2000-A (the "Trust"), Conseco
Finance Securitizations Corp., a corporation organized and existing under the
laws of the State of Minnesota, as Seller (the "Seller") and Conseco Finance
Corp., a corporation organized and existing under the laws of the State of
Delaware, as originator of the Contracts described herein (the "Originator"),
and as Servicer (the "Servicer").

     WHEREAS, in the regular course of its business, Conseco Finance Corp.
purchases, originates and services certain retail installment sales contracts
and promissory notes for the purchase of recreational vehicles, motorcycles and
marine products (the "Products"), each of which contracts provides for
installment payments by or on behalf of the purchaser and grants a lien on or
security interest in a Product; and

     WHEREAS, the Seller, in the ordinary course of its business, acquires pools
of Contracts, as hereinafter defined, from Conseco Finance Corp. and arranges
the securitization of those Contracts; and

     WHEREAS, the Seller, the Originator, the Servicer and the Trust wish to set
forth the terms and conditions pursuant to which the Trust will acquire the
"Contracts," as hereinafter defined, and the Servicer will service the
Contracts;

     NOW, THEREFORE, in consideration of the premises and the mutual agreements
hereinafter set forth, the parties hereto agree as provided herein:
<PAGE>

                                   ARTICLE I

                                  DEFINITIONS

     SECTION 1.01.  General.
                    -------

     (a) For the purpose of this Agreement, except as otherwise expressly
provided or unless the context otherwise requires, the terms defined in this
Article include the plural as well as the singular, the words "herein," "hereof"
and "hereunder" and other words of similar import refer to this Agreement as a
whole and not to any particular Article, Section or other subdivision, and
Section references refer to Sections of this Agreement.

     (b) Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to them in the Indenture.

     (c) All terms defined in this Agreement shall have the defined meanings
when used in any certificate or other document made or delivered pursuant hereto
unless otherwise defined therein.

     (d) As used in this Agreement and in any certificate or other document made
or delivered pursuant hereto or thereto, accounting terms not defined in this
Agreement or in any such certificate or other document, and accounting terms
partly defined in this Agreement or in any such certificate or other document to
the extent not defined, shall have the respective meanings given to them under
generally accepted accounting principles.  To the extent that the definitions of
accounting terms in this Agreement or in any such certificate or other document
are inconsistent with the meanings of such terms under generally accepted
accounting principles, the definitions contained in this Agreement or in any
such certificate or other document shall control.

     (e) The definitions contained in this Agreement are applicable to the
singular as well as the plural forms of such terms and to the masculine as well
as to the feminine and neuter genders of such terms.

     (f) Any agreement, instrument or statute defined or referred to herein or
in any instrument or certificate delivered in connection herewith means such
agreement, instrument or statute as from time to time amended, modified or
supplemented and includes (in the case of agreements or instruments) references
to all attachments thereto and instruments incorporated therein; references to a
Person include its permitted successors and assignees.

     SECTION 1.02.  Specific Terms.
                    --------------

     All terms defined in any Related Document and not otherwise defined in this
Agreement shall have the meanings given them in such Related Document.

     "Addition Notice"  means, with respect to the transfer of Subsequent
      ---------------
Contracts to the Trust pursuant to Section 2.03 of this Agreement, a notice,
substantially in the form of Exhibit E, which shall be given not later than five
Business Days prior to the related Subsequent Transfer

                                      1-1
<PAGE>

Date, of the Seller's designation of Subsequent Contracts to be sold to the
Trust and the aggregate Cut-off Date Principal Balance of such Subsequent
Contracts.

     "Additional Principal Distribution Amount" means:
      ----------------------------------------

          (i)  for any Distribution Date on or prior to the earlier of the
     Distribution Date in July 2002 and the first Distribution Date on which the
     Overcollateralization Amount equals $14,000,000, the lesser of (A) the
     Amount Available remaining after payment of the amounts described in
     clauses (i) through (xi) of Section 6.04(a), and (B) the amount (but not
     less than zero) necessary to increase the Overcollateralization Amount on
     that Distribution Date to $14,000,000, and

          (ii) for any Distribution Date after the earlier of the Distribution
     Date in July 2002 and the first Distribution Date on which the
     Overcollateralization Amount equals $14,000,00, zero.

     "Advance Payment" means, with respect to any Monthly Period, any payment by
      ---------------
an Obligor that was not due under the related Contract during or before such
Monthly Period and which payment is not a Principal Prepayment.

     "Affiliate" of any specified Person means 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 terms "controlling" or "controlled" have meanings
correlative to the foregoing.

     "Agreement" means this Sale and Servicing Agreement as the same may be
      ---------
amended or supplemented from time to time.

     "Amount Available" means, as to any Distribution Date, an amount equal to
      ----------------
the Collected Funds for that Distribution Date plus any amounts required to be
deposited in the Collection Account on or before such Distribution Date pursuant
to Sections 6.02, 6.06, 8.01 and 8.02 of this Agreement, Section 10.04 of the
Indenture or Section 9.3 of the Trust Agreement.

     "Amount Held for Future Distribution" means, as to any Distribution Date,
      -----------------------------------
the total of the amounts held in the Collection Account on the last day of the
related Monthly Period on account of Advance Payments in respect of such Monthly
Period.

     "Assignment" means the Assignment from the Seller to the Trust
      ----------
substantially in the form of Exhibit A, whereby the Seller assigns the Initial
Contracts to the Trust.

     "Average Sixty-Day Delinquency Ratio" means, as to any Distribution Date,
      -----------------------------------
the arithmetic average of the Sixty-Day Delinquency Ratios for such Distribution
Date and the two immediately preceding Distribution Dates.

                                      1-2
<PAGE>

     "Average Sixty-Day Delinquency Ratio Test" means, to be considered
      ----------------------------------------
"satisfied" for any Distribution Date, that the Average Sixty-Day Delinquency
Ratio for such Distribution Date is less than 10%.

     "Business Day" means any day other than (a) a Saturday, Sunday, legal
      ------------
holiday or other day on which commercial banking institutions in Minneapolis,
Minnesota, New York, New York, Wilmington, Delaware or any other location of any
successor Servicer, successor Owner Trustee or successor Trustee are authorized
or obligated by law, executive order or governmental decree to be closed.

     "Certificate Distribution Account" means the account established and
      --------------------------------
maintained pursuant to Section 6.01(c).

     "Certificate Majority" means Holders of Certificates representing more than
      --------------------
50% of the interest of the Certificates as a whole.

     "Certificates"  means the Class C Asset-Backed Certificates issued under
      ------------
the Trust Agreement.

     "Class" means pertaining to each Class of Notes or Certificates, as
      -----
applicable.

     "Class A Interest Amount" means as to any Distribution Date, the sum of the
      -----------------------
Class A-1 Interest Amount, the Class A-2 Interest Amount and the Class A-3
Interest Amount.

     "Class A Principal Balance" means, as to any Distribution Date, the sum of
      -------------------------
the Class A-1 Principal Balance, the Class A-2 Principal Balance and the Class
A-3 Principal Balance.

     "Class A-1 Formula Principal Distribution Amount" means, on any
      -----------------------------------------------
Distribution Date before the Stepdown Date, the lesser of the Total Note
Principal Distribution Amount and the Class A-1 Principal Balance; and
thereafter:

          (i)  if no Trigger Event exists, the lesser of 66.67% of the Total
     Note Principal Distribution Amount and the Class A-1 Principal Balance; or

          (ii) if a Trigger Event exists, the lesser of the Total Note Principal
     Distribution Amount and the Class A-1 Principal Balance.

     "Class A-1 Interest Amount" means with respect to any Distribution Date, an
      -------------------------
amount equal to one month's interest (or, with respect to the Distribution Date
in July 2000, from and including the Closing Date to but excluding July 15,
2000) at the Class A-1 Interest Rate on the Class A-1 Principal Balance.

     "Class A-1 Interest Shortfall" means, with respect to any Distribution
      ----------------------------
Date, the amount, if any, by which the amount distributed to Holders of the
Class A-1 Notes on such Distribution Date is less than the Class A-1 Interest
Amount for such Distribution Date.

                                      1-3
<PAGE>

     "Class A-1 Interest Rate" means a per annum rate of interest equal to
      -----------------------
7.562%, calculated on the basis of a 360 day year consisting of twelve 30-day
months.

     "Class A-1 Notes" means the Class A-1 Asset-Backed Notes issued by the
      ---------------
Trust pursuant to the Indenture.

     "Class A-1 Principal Balance" means, as to any Distribution Date, the
      ---------------------------
Original Class A-1 Principal Balance less all amounts distributed to Holders of
Class A-1 Notes on any prior Distribution Date on account of principal.

     "Class A-2 Interest Amount" means, with respect to any Distribution Date,
      -------------------------
an amount equal to one month's interest (or, with respect to the Distribution
Date in July 2000, from and including the Closing Date to but excluding July 15,
2000) at the Class A-2 Interest Rate on the Class A-2 Principal Balance.

     "Class A-2 Interest Shortfall" means, with respect to any Distribution
      ----------------------------
Date, the amount, if any, by which the amount distributed to Holders of the
Class A-2 Notes on such Distribution Date pursuant to the Indenture is less than
the Class A-2 Interest Amount for such Distribution Date.

     "Class A-2 Interest Rate" means a per annum rate of interest equal to
      -----------------------
7.850%, calculated on the basis of a 360 day year consisting of twelve 30-day
months.

     "Class A-2 Notes" means the Class A-2 Asset-Backed Notes issued by the
      ---------------
Trust pursuant to the Indenture.

     "Class A-2 Principal Balance" means, as to any Distribution Date the
      ---------------------------
Original Class A-2 Principal Balance less all amounts distributed to Holders of
Class A-2 Notes on prior Distribution Dates on account of principal.

     "Class A-2 and Class A-3 Formula Principal Distribution Amount" means, with
      -------------------------------------------------------------
respect to any Distribution Date:

          (i)   if the Distribution Date is before the Stepdown Date, zero;

          (ii)  if the Distribution Date is on or after the Stepdown Date and no
     Trigger Event exists, the lesser of 66.67% of the Total Note Principal
     Distribution Amount and the sum of the Class A-2 Principal Balance and the
     Class A-3 Principal Balance, distributed sequentially to such Class A-2
     Notes and Class A-3 Notes;

          (iii) if the Class A-1 Principal Balance has been reduced to zero and
     a Trigger Event exists, the lesser of 100% of the Total Note Principal
     Distribution Amount and the sum of the Class A-2 Principal Balance and the
     Class A-3 Principal Balance, distributed sequentially to the Class A-2 and
     Class A-3 Notes.

                                      1-4
<PAGE>

     "Class A-3 Interest Amount" means, with respect to any Distribution Date,
      -------------------------
an amount equal to one month's interest (or, with respect to the Distribution
Date in July 2000, from and including the Closing Date to but excluding July 15,
2000) at the Class A-3 Interest Rate on the Class A-3 Principal Balance.

     "Class A-3 Interest Shortfall" means, with respect to any Distribution
      ----------------------------
Date, the amount, if any, by which the amount distributed to Holders of the
Class A-3 Notes on such Distribution Date is less than the Class A-3 Interest
Amount for such Distribution Date.

     "Class A-3 Interest Rate" means a per annum rate of interest equal to
      -----------------------
8.110%, calculated on the basis of a 360 day year consisting of twelve 30-day
months.

     "Class A-3 Notes" means the Class A-3 Asset-Backed Notes issued by the
      ---------------
Trust pursuant to the Indenture.

     "Class A-3 Principal Balance" means, as to any Distribution Date, the
      ---------------------------
Original Class A-3 Principal Balance less all amounts distributed to Holders of
Class A-3 Notes on prior Distribution Dates on account of principal.

     "Class B Formula Principal Distribution Amount" means, on any Distribution
      ---------------------------------------------
Date:

          (i)   if the Distribution Date is before the Stepdown Date and no
     Trigger Event exists, $0;

          (ii)  if the Distribution Date is on or after the Stepdown Date and no
     Trigger Event exists, 13.33% of the Total Note Principal Distribution
     Amount, but in no event more than the Class B Principal Balance;

          (iii) if a Trigger Event exists, the Total Note Principal Distribution
     Amount less the sum of the Class A-1 Formula Principal Distribution Amount,
     the Class A-2 and Class A-3 Formula Principal Distribution Amount, Class M-
     1 Formula Principal Distribution Amount and the Class M-2 Formula Principal
     Distribution Amount, but in no event more than the Class B Principal
     Balance.

     "Class B Interest Amount" means, as to any Distribution Date, an amount
      -----------------------
equal to one month's interest (or, with respect to the first Distribution Date,
interest from and including the Closing Date to but excluding July 15, 2000) at
the Class B Interest Rate on the Class B Principal Balance.

     "Class B Interest Shortfall" means as to any Distribution Date, the amount,
      --------------------------
if any, by which the amount distributed to Holders of the Class B Notes on such
Distribution Date is less than the Class B Interest Amount for such Distribution
Date.

     "Class B Interest Rate" means 9.920% per annum, computed on the basis of a
      ---------------------
year of 360 days consisting of twelve 30-day months.

                                      1-5
<PAGE>

     "Class B Notes" means the Class B Asset-Backed Notes issued by the Trust
      -------------
pursuant to the Indenture.

     "Class B Pool Factor" means, with respect to any Distribution Date, an
      -------------------
eight-digit decimal figure equal to the outstanding principal balance of the
Class B Notes as of such Distribution Date (after giving effect to all
distributions on such date) divided by the Original Class B Principal Balance.

     "Class B Principal Balance" means, as to any Distribution Date, the
      -------------------------
Original Class B Principal Balance less all amounts distributed to Holders of
Class B Notes on prior Distribution Dates on account of principal.

     "Class B Reserve Account" means the account established and maintained
      -----------------------
pursuant to Section 6.09.

     "Class B Reserve Account Excess Amount" means, with respect to any
      -------------------------------------
Distribution Date, an amount equal to the excess, if any, of:

          (i)   the amount of cash or other immediately available funds in the
     Class B Reserve Account on the Distribution Date, prior to giving effect to
     any withdrawals from the Class B Reserve Account relating to that
     Distribution Date, over

          (ii)  the Class B Specified Reserve Balance with respect to that
     Distribution Date.

     "Class B Specified Reserve Balance" means an amount equal to $1,400,000.
      ---------------------------------

     "Class M-1 Formula Principal Distribution Amount" means, on any
      -----------------------------------------------
Distribution Date:

          (i)   if the Distribution Date is before the Stepdown Date and no
     Trigger Event exists, $0;

          (ii)  if the Distribution Date is on or after the Stepdown Date and no
     Trigger Event exists, 11.11% of the Total Note Principal Distribution
     Amount, but in no event more than the Class M-1 Principal Balance;

          (iii) if a Trigger Event exists, the Total Note Principal Distribution
     Amount less the sum of the Class A-1 Formula Principal Distribution Amount
     and the Class A-2 and Class A-3 Formula Principal Distribution Amount, but
     in no event more than the Class M-1 Principal Balance.

     "Class M-1 Interest Amount" means, with respect to any Distribution Date,
      -------------------------
an amount equal to one month's interest (or, with respect to the first
Distribution Date, interest from and including the Closing Date to but excluding
July 15, 2000) at the Class M-1 Interest Rate on the Class M-1 Principal
Balance.
                                      1-6
<PAGE>

     "Class M-1 Interest Shortfall" means, with respect to any Distribution
      ----------------------------
Date, the amount, if any, by which the amount distributed to Holders of the
Class M-1 Notes on such Distribution Date is less than the Class M-1 Interest
Amount for such Distribution Date.

     "Class M-1 Interest Rate" means a per annum rate of interest equal to
      -----------------------
8.480%, calculated on the basis of a year of 360 days consisting of twelve 30-
day months.

     "Class M-1 Notes" means the Class M-1 Asset-Backed Notes issued by the
      ---------------
Trust pursuant to the Indenture.

     "Class M-1 Pool Factor" means, with respect to any Distribution Date, an
      ---------------------
eight-digit decimal figure equal to the outstanding principal balance of the
Class M-1 Notes as of such Distribution Date (after giving effect to all
distributions on such date) divided by the Original Class M-1 Principal Balance.

     "Class M-1 Principal Balance" means, as to any Distribution Date, the
      ---------------------------
Original Class M-1 Principal Balance less all amounts distributed to Holders of
Class M-1 Notes on prior Distribution Dates on account of principal.

     "Class M-2 Formula Principal Distribution Amount" means, on any
      -----------------------------------------------
Distribution Date:

          (i)   if the Distribution Date is before the Stepdown Date and no
     Trigger Event exists, $0;

          (ii)  if the Distribution Date is on or after the Stepdown Date and no
     Trigger Event exists, 8.89% of the Total Note Principal Distribution
     Amount, but in no event more than the Class M-2 Principal Balance;

          (iii) if a Trigger Event exists, the Total Note Principal Distribution
     Amount less the sum of the Class A-1 Formula Principal Distribution Amount,
     the Class A-2 and Class A-3 Formula Principal Distribution Amount and the
     Class M-1 Formula Principal Distribution Amount, but in no event more than
     the Class M-2 Principal Balance.

     "Class M-2 Interest Amount" means, with respect to any Distribution Date,
      -------------------------
an amount equal to one month's interest (or with respect to the first
Distribution Date, interest from and including the Closing Date to but excluding
July 15, 2000) at the Class M-2 Interest Rate on the Class M-2 Principal
Balance.

     "Class M-2 Interest Shortfall" means, with respect to any Distribution
      ----------------------------
Date, the amount, if any, by which the amount distributed to Holders of the
Class M-2 Notes on such Distribution Date is less than the Class M-2 Interest
Amount for such Distribution Date.

     "Class M-2 Interest Rate" means a per annum rate of interest equal to
      -----------------------
8.960%, calculated on the basis of a year of 360 days consisting of twelve 30-
day months.

                                      1-7
<PAGE>

     "Class M-2 Notes" means the Class M-2 Asset-Backed Notes issued by the
      ---------------
Trust pursuant to the Indenture.

     "Class M-2 Pool Factor" means, with respect to any Distribution Date, an
      ---------------------
eight-digit decimal figure equal to the outstanding principal balance of the
Class M-2 Notes as of such Distribution Date  (after giving effect to all
distributions on such date) divided by the Original Class M-2 Principal Balance.

     "Class M-2 Principal Balance" means, as to any Distribution Date, the
      ---------------------------
Original Class M-2 Principal Balance less all amounts distributed to Holders of
Class M-2 Notes on prior Distribution Dates on account of principal.

     "Closing Date" means June 29, 2000.
      ------------

     "Code" means the Internal Revenue Code of 1986, as amended.
      ----

     "Collateral Security" means, with respect to any Contract, (i) the security
      -------------------
interests, if any, granted by or on behalf of the related Obligor with respect
thereto, including a first priority perfected security interest in the related
Product, (ii) all other security interests or liens and property subject thereto
from time to time purporting to secure payment of such Contract, whether
pursuant to the agreement giving rise to such Contract or otherwise, together
with all financing statements signed by the Obligor describing any collateral
securing such Contract, (iii) all security agreements granting a security
interest in the related Product and all guarantees, insurance and other
agreements or arrangements of whatever character from time to time supporting or
securing payment of such Contract whether pursuant to the agreement giving rise
to such Contract or otherwise, and (iv) all records in respect of such Contract.

     "Collected Funds" means, as to any Distribution Date, an amount equal to
      ---------------
(a) the sum of (i) the amount on deposit in the Collection Account as of the
close of business on the last day of the related Monthly Period (exclusive of
any amounts deposited therein pursuant to Sections 8.01 or 8.02 of this
Agreement or Section 10.04 of the Indenture), (ii) any amounts required to be
deposited in the Collection Account on or before the Business Day immediately
preceding such Distribution Date pursuant to Sections 5.09 or 5.13, and (iii)
any amount deposited in the Collection Account in respect of principal on the
Contracts (exclusive of any amounts deposited therein pursuant to Sections 6.06,
8.01 or 8.02 of this Agreement, Section 10.04 of the Indenture or Section 9.3 of
the Trust Agreement) after the last day of the related Monthly Period through
and including the third Business Day prior to the Distribution Date, but in no
event later than the 10th day of the month in which such Distribution Date
occurs, reduced by (b) the sum as of the close of business on the last day of
the related Monthly Period of (i) the Amount Held for Future Distribution, (ii)
amounts permitted to be withdrawn by the Trustee from the Collection Account
pursuant to clauses (b) - (e), inclusive, of Section 6.03; and (iii) with
respect to all Distribution Dates other than the Distribution Date in July 2000,
any amount deposited in the Collection Account in respect of principal on the
Contracts (exclusive of any amounts deposited therein pursuant to Sections 6.06,
8.01 or 8.02 of this Agreement, Section 10.04 of the Indenture or Section 9.3 of
the Trust Agreement) on or after the first day of the related Monthly Period and

                                      1-8
<PAGE>

through and including the third Business Day of the preceding Distribution Date,
but in no event later than the 10th day of the related Monthly Period.

     "Collection Account" means the account established and maintained pursuant
      ------------------
to Section 6.01(a).

     "Computer Tape" means the computer tape generated by the Originator which
      -------------
provides information relating to the Contracts and which was used by the
Originator in selecting the Contracts, and includes the master file and the
history file.

     "Contract File" means, as to each Contract, (a) the original copy of the
      -------------
Contract, including the executed evidence of the obligation of the Obligor; (b)
either (i) the original title document for the related Product or a duplicate
certified by the appropriate governmental authority which issued the original
thereof or the application for such title document or (ii) if the laws of the
jurisdiction in which the related Product is located do not provide for the
issuance of title documents for goods of the type including the Product, other
evidence of ownership of the related Product which is customarily relied upon in
such jurisdiction as evidence of title to such goods; (c) evidence of one or
more of the following types of perfection of the security interest in the
related Product granted by such Contract, as appropriate:  (i) notation of such
security interest on the title document, (ii) a financing statement meeting the
requirements of the UCC, with evidence of recording indicated thereon (if
required to perfect a security interest in the related Product under the UCC as
in force in the relevant state), or (iii) such other evidence of perfection of a
security interest in goods of the type including the Product as is customarily
relied upon in the jurisdiction in which the related Product is located; (d) the
assignment of the Contract from the originator (if other than the Originator or
a wholly-owned subsidiary of the Originator) to the Originator or a wholly-owned
subsidiary of the Originator; (e) any extension, modification or waiver
agreement(s); (f) a credit application signed by the Obligor, or a copy thereof;
and (g) if required by Section 5.09, a certificate of insurance or application
form for insurance signed by the Obligor, or copies thereof.

     "Contract Rate" means, with respect to any particular Contract, the rate of
      -------------
interest specified in that Contract and computed in accordance with the method
specified in that Contract.

     "Contracts" means the retail installment sales contracts and promissory
      ---------
notes described in the List of Contracts and constituting part of the corpus of
the Trust, which Contracts are to be assigned and conveyed by the Seller to the
Trust, and includes, without limitation, all related security interests and any
and all rights to receive payments which are due pursuant thereto on or after
the Cutoff Date, but excluding any rights to receive payments which are due
pursuant thereto prior to the Cutoff Date.

     "Corporate Trust Office" means with respect to the Owner Trustee, the
      ----------------------
principal office of the Owner Trustee at which at any particular time its
corporate trust business shall be administered, which office at the Closing Date
is located at Rodney Square North, 1100 North Market Street, Wilmington,
Delaware 19890-0001, Attention:  Corporate Trust Administration; the telecopy
number for the Corporate Trust Office of the Owner Trustee on the date of the

                                      1-9
<PAGE>

execution of this Agreement is 302-651-8882; with respect to the Indenture
Trustee, the principal office of the Indenture Trustee at which at any
particular time its corporate trust business shall be administered, which office
at the Closing Date is located at U.S. Bank Trust National Association, 180 East
Fifth Street, St. Paul, Minnesota 55101 Attention:  Corporate Trust Department;
the telecopy number for the Corporate Trust Office of the Indenture Trustee on
the date of execution of this Agreement is 612-244-0089.

     "Counsel for the Originator" means Dorsey & Whitney LLP or other legal
      --------------------------
counsel for the Originator.

     "Cumulative Realized Loss Ratio" means, for any Distribution Date, a
      ------------------------------
fraction, expressed as a percentage, the numerator of which is the Cumulative
Realized Losses for that Distribution Date and the denominator of which is the
sum of the Cut-off Date Pool Principal Balance plus the amount on deposit in the
Pre-Funding Account immediately prior to the Post-Funding Distribution Date.

     "Cumulative Realized Losses" means, for any Distribution Date, the sum of
      --------------------------
the Realized Losses for the Contracts for that Distribution Date and each
preceding Distribution Date since the Cut-off Date.

     "Cumulative Realized Losses Test" means, to be considered "satisfied" for
      -------------------------------
any Distribution Date, that the Cumulative Realized Loss Ratio for the
Contracts, for such Distribution Date is less than or equal to the percentage
set forth below:

                   Distribution Date                  Percentage
                   -----------------                  ----------

               July 2002 - December 2002                2.70%
               January 2003 - June 2003                 3.44%
               July 2003 - December 2003                4.05%
               January 2004 - June 2004                 4.63%
               July 2004 - December 2004                5.09%
               January 2005 - June 2005                 5.25%
               July 2005 - December 2005                5.45%
               January 2006 - June 2006                 5.65%
               July 2006 - December 2006                5.83%

     "Cutoff Date" means the Initial Cutoff Date with respect to the Initial
      -----------
Contracts or the Subsequent Cutoff Date with respect to the Subsequent
Contracts.

     "Cutoff Date Pool Principal Balance" means the aggregate of the Cutoff Date
      ----------------------------------
Principal Balances of the Contracts.

     "Cutoff Date Principal Balance" means, as to any Contract, the unpaid
      -----------------------------
principal balance thereof at the Cutoff Date after giving effect to all
installments of principal due prior thereto.

                                     1-10
<PAGE>

     "Defaulted Contract" means a Contract with respect to which the Servicer
      ------------------
commenced repossession or foreclosure procedures, made a sale of such Contract
to a third party for repossession, foreclosure or other enforcement, or as to
which there was a payment delinquent 180 or more days (excluding any Contract
deemed delinquent solely because the Obligor's required monthly payment was
reduced as a result of bankruptcy or similar proceedings).

     "Delinquent Payment" means, as to any Contract, with respect to any Monthly
      ------------------
Period, any payment or portion of a payment of principal or interest that was
originally scheduled to be made during such Monthly Period under such Contract
and was not received or applied during such Monthly Period, whether or not any
payment extension has been granted by the Servicer.

     "Determination Date" means the third Business Day prior to each
      ------------------
Distribution Date during the term of this Agreement.

     "Distribution Date" means the fifteenth day of each calendar month during
      -----------------
the term of this Agreement, or if such day is not a Business Day, the next
succeeding Business Day, commencing on July 17, 2000.

     "Due Date" means, as to any Contract, the date of the month on which the
      --------
scheduled monthly payment for such Contract is due.

     "Electronic Ledger" means the electronic master record of installment sale
      -----------------
contracts of the Originator.

     "Eligible Account" means, at any time, an account which is any of the
      ----------------
following: (i) an account maintained with an Eligible Institution; (ii) a trust
account (which shall be a "segregated trust account") maintained with the
corporate trust department of a federal or state chartered depository
institution or trust company with trust powers and acting in its fiduciary
capacity for the benefit of the Indenture Trustee, which depository institution
or trust company shall have capital and surplus (or, if such depository
institution or trust company is a subsidiary of a bank holding company system,
the capital and surplus of the bank holding company) of not less than
$50,000,000 and the securities of such depository institution (or, if such
depository institution is a subsidiary of a bank holding company system and such
depository institution's securities are not rated, the securities of the bank
holding company) shall have a credit rating from Standard & Poor's (if rated by
Standard & Poor's) and Moody's in one of its generic credit rating categories
which signifies investment grade; or (iii) an account that will not cause
Standard & Poor's and Moody's to downgrade or withdraw their then-current
ratings assigned to the Notes, as confirmed in writing by Standard & Poor's and
Moody's.

     "Eligible Institution" means any depository institution (which may be the
      --------------------
Owner Trustee, the Indenture Trustee or an Affiliate of either) organized under
the laws of the United States or any State, the deposits of which are insured to
the full extent permitted by law by the Bank Insurance Fund (currently
administered by the Federal Deposit Insurance Corporation), which is subject to
supervision and examination by federal or state authorities and whose short-term
deposits have been rated A-1+ by Standard & Poor's and P-1 by Moody's, or whose
unsecured long-term debt has been rated in one of the two highest rating
categories by Standard & Poor's

                                     1-11
<PAGE>

and Moody's in the case of unsecured long-term debt, or who shall otherwise be
acceptable to Standard & Poor's and Moody's.

     "Eligible Investments" are any of the following:
      --------------------

          (i)   direct obligations of, and obligations fully guaranteed by, the
     United States of America, the Federal Home Loan Mortgage Corporation, the
     Federal National Mortgage Association, or any agency or instrumentality of
     the United States of America the obligations of which are backed by the
     full faith and credit of the United States of America and which are
     noncallable;

          (ii)  demand and time deposits in, certificates of deposit of,
     bankers' acceptances issued by, or federal funds sold by any depository
     institution or trust company (including the Indenture Trustee or any
     Affiliate of the Indenture Trustee, acting in its commercial capacity)
     incorporated under the laws of the United States of America or any State
     thereof and subject to supervision and examination by federal and/or state
     authorities, so long as, at the time of such investment or contractual
     commitment providing for such investment, the commercial paper or other
     short-term deposits of such depository institution or trust company (or, in
     the case of a depository institution which is the principal subsidiary of a
     holding company, the commercial paper or other short-term debt obligations
     of such holding company) are rated at least A-1+ by Standard & Poor's and
     at least P-1 by Moody's;

          (iii) shares of an investment company registered under the Investment
     Company Act of 1940, whose shares are registered under the Securities Act
     of 1933 and have the highest credit rating then available from Moody's and
     Standard & Poor's and whose only investments are in securities described in
     clauses (i) and (ii) above;

          (iv)  repurchase obligations with respect to (A) any security
     described in clause (i) above or (B) any other security issued or
     guaranteed by an agency or instrumentality 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) above;

          (v)   securities bearing interest or sold at a discount issued by any
     corporation incorporated under the laws of the United States of America or
     any State thereof which have a credit rating of at least AAA by Standard &
     Poor's and in one of the two highest rating categories from Moody's at the
     time of such investment; provided, however, that securities issued by any
                              --------  -------
     particular corporation will not be Eligible Investments to the extent that
     investment therein will cause the then outstanding principal amount of
     securities issued by such corporation and held as part of the corpus of the
     Trust to exceed 10% of amounts held in the Collection Account; and

          (vi)  commercial paper having a rating of at least A-1+ from Standard
     & Poor's and at least P-1 by Moody's at the time of such investment or
     pledge as a security.

                                     1-12
<PAGE>

Notwithstanding the foregoing, securities that represent the right to receive
payments only of interest due on underlying obligations shall not be included as
Eligible Investments, whether or not such securities otherwise fall within (i)
through (vi) above.

     Each of the Indenture Trustee and the Owner Trustee may trade with itself
or an Affiliate in the purchase or sale of such Eligible Investments.

     "Eligible Servicer" means Conseco Finance Corp. or any Person qualified to
      -----------------
act as Servicer of the Contracts under applicable federal and state laws and
regulations, which Person services not less than an aggregate of $100,000,000 in
outstanding principal amount of retail installment sales contracts and/or
consumer installment Contracts.

     "ERISA" means the Employee Retirement Income Security Act of 1974, as
      -----
amended.

     "Errors and Omissions Protection Policy" means the employee errors and
      --------------------------------------
omissions policy maintained by the Servicer or any similar replacement policy
covering errors and omissions by the Servicer's employees, and meeting the
requirements of Section 5.09, all as such policy relates to Contracts comprising
a portion of the corpus of the Trust.

     "Event of Termination" has the meaning assigned in Section 7.01.
      --------------------

     "Fidelity Bond" means the fidelity bond maintained by the Servicer or any
      -------------
similar replacement bond, meeting the requirements of Section 5.09, as such bond
relates to Contracts comprising a portion of the corpus of the Trust.

     "Formula Principal Distribution Amount" means, as of any Distribution Date
      -------------------------------------
(but subject to the last sentence of this definition), the sum of the following
amounts with respect to the related Monthly Period, in each case computed in
accordance with the method specified in the relevant Contract:

          (i)   all scheduled payments of principal due on each outstanding
     Contract during the related Monthly Period as specified in the amortization
     schedule at the time applicable thereto (after adjustments for previous
     Partial Principal Prepayments and after any adjustment to such amortization
     schedule by reason of any bankruptcy of an Obligor or similar proceeding or
     any moratorium or similar waiver or grace period); plus

          (ii)  the Scheduled Principal Balance of each Contract which, during
     the related Monthly Period, was purchased by the Originator pursuant to
     this Agreement on account of a breach of a representation or warranty; plus

          (iii) all Partial Principal Prepayments applied and all Principal
     Prepayments in Full received on Contracts during the related Monthly
     Period; plus

          (iv)  the aggregate Scheduled Principal Balance of all Contracts that
     became Liquidated Contracts during the related Monthly Period; plus the
     amounts of any reduction in the outstanding principal balance of a Contract
     during such Monthly Period

                                     1-13
<PAGE>

     ordered as a result of a bankruptcy or similar proceeding involving the
     related Obligor; plus

          (v)  all collections in respect of principal on the Contracts received
     during the current month up to and including the third Business Day prior
     to such Distribution Date (but in no event later than the 10th day of the
     month in which such Distribution Date occurs), minus

          (vi) with respect to all Distribution Dates other than the
     Distribution Date in July 2000, all collections of principal on the
     Contracts received during the related Monthly Period up to and including
     the third Business Day prior to the preceding Distribution Date (but in no
     event later than the 10th day of the prior month).

     "Formula Principal Shortfall" means, with respect to any Distribution Date,
      ---------------------------
the excess, if any, of the Formula Principal Distribution Amount for such
Distribution Date over the funds available to pay principal on the Notes
pursuant to Section 6.04(a) of this Agreement.

     "GTFC-2" means Green Tree Finance Corp.-2, a Minnesota corporation.
      ------

     "Indenture" means the Indenture, dated as of June 1, 2000, between the
      ---------
Trust and U.S. Bank Trust National Association, as Indenture Trustee, as the
same may be amended and supplemented from time to time.

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

     "Independent" means, when used with respect to any specified Person, Dorsey
      -----------
& Whitney LLP, or any Person who (i) is in fact independent of the Seller and
the Servicer, (ii) does not have any direct financial interest or any material
indirect financial interest in the Seller or the Servicer or in an Affiliate of
either and (iii) is not connected with the Seller or the Servicer as an officer,
employee, promoter, underwriter, trustee, partner, director or person performing
similar functions.  Whenever it is provided herein that any Independent Person's
opinion or certificate shall be furnished to the Trustee, such opinion or
certificate shall state that the signatory has read this definition and is
Independent within the meaning set forth herein.

     "Initial Contract" means a Contract identified as such on the List of
      ----------------
Contracts attached hereto.

     "Initial Cutoff Date" means May 31, 2000.
      -------------------

     "Insurance Policy" means, with respect to each Contract, the policy of
      ----------------
insurance (if any) required to be maintained for the related Product by Section
5.09, and which, as provided in said Section 5.09, may be a blanket policy
maintained by the Servicer in accordance with the terms and conditions of said
Section 5.09.

                                     1-14
<PAGE>

     "Insurance Proceeds" means proceeds paid by any insurer pursuant to any
      ------------------
insurance policy or contract.

     "Interest Accrual Period" means, with respect to a Distribution Date, the
      -----------------------
period from and including the preceding Distribution Date (or, in the case of
the first Distribution Date, from and including the Closing Date) to but
excluding such Distribution Date.

     "Liquidated Contract" means any Defaulted Contract as to which the Servicer
      -------------------
has determined that all amounts which it expects to recover from or on account
of such Contract through the date of disposition of the related Product have
been recovered; provided that any defaulted Contract in respect of which the
related Product has been realized upon and disposed of and the proceeds of such
disposition have been received shall be deemed to be a Liquidated Contract.

     "Liquidation Expenses" means out-of-pocket expenses (exclusive of any
      --------------------
overhead expenses) which are incurred by the Servicer in connection with the
liquidation of any Defaulted Contract, on or prior to the date on which the
related Product is disposed of, including, without limitation, legal fees and
expenses, and any related and unreimbursed expenditures for property taxes,
property preservation or restoration of the property to marketable condition.

     "Liquidation Proceeds" means cash (including Insurance Proceeds and
      --------------------
proceeds realized on the repurchase of any Product by the originating dealer for
breach of warranties) received in connection with the liquidation of Defaulted
Contracts, whether through repossession, foreclosure sale or otherwise,
including any rental income realized from any repossessed Product.

     "List of Contracts" means the list identifying each Contract constituting
      -----------------
part of the corpus of the Trust, which list (a) identifies each Contract and (b)
sets forth as to each Contract (i) the Cutoff Date Principal Balance, (ii) the
amount of monthly payments due from the Obligor, (iii) the Contract Rate and
(iv) the maturity date, the List of Contracts as of the Closing Date is attached
to the Assignment, and shall be revised on each Subsequent Transfer Date to add
the Subsequent Contracts then being transferred to the Trust.

     "Minimum Purchase Price" has the meaning assigned in Section 8.01.
      ----------------------

     "Moody's" means Moody's Investors Service, Inc., or any successor thereto;
      -------
provided that, if Moody's no longer has a rating outstanding on any Class of
Notes, then references herein to "Moody's" shall be deemed to refer to the NRSRO
then rating any Class of the Notes (or, if more than one such NRSRO is then
rating any Class of the Notes, to such NRSRO as may be designated by the
Servicer), and references herein to ratings by or requirements of Moody's shall
be deemed to have the equivalent meanings with respect to ratings by or
requirements of such NRSRO.

     "Monthly Period" means a calendar month during the term of this Agreement.
      --------------
With respect to a Distribution Date, "related Monthly Period" means the calendar
month immediately preceding the month in which the Distribution Date occurs.

                                     1-15
<PAGE>

     "Monthly Report" has the meaning assigned in Section 5.14.
      --------------

     "Monthly Servicing Fee" means, as of any Distribution Date, one-twelfth of
      ---------------------
the product of 0.75% and the Pool Scheduled Principal Balance for the
immediately preceding Distribution Date.

     "Net Liquidation Loss" means, as to a Liquidated Contract, the amount, if
      --------------------
any, by which (a) the outstanding principal balance of such Liquidated Contract
plus accrued and unpaid interest thereon to the date on which such Liquidated
Contract became a Liquidated Contract exceeds (b) the Net Liquidation Proceeds
for such Liquidated Contract.

     "Net Liquidation Proceeds" means, as to a Liquidated Contract, all
      ------------------------
Liquidation Proceeds received on or prior to the last day of the Monthly Period
in which such Contract became a Liquidated Contract, net of Liquidation
Expenses.

     "Note Distribution Account" means the account designated as such,
      -------------------------
established and maintained pursuant to Section 6.01(b).

     "Note Majority" means, as to each Class of Notes, Holders of Notes
      -------------
representing a majority of the Principal Balance of such Class of Notes.

     "Note Pool Factor" means, with respect to any Distribution Date and each
      ----------------
Class of Notes, an eight-digit decimal figure equal to the outstanding principal
balance of such class of Notes as of such Distribution Date (after giving effect
to all distributions on such date) divided by the Original Principal Balance of
such Class of Notes as of the Closing Date.

     "Note Principal Balance" means, as of any Distribution Date, the sum of the
      ----------------------
Class A Principal Balance, the Class M-1 Principal Balance, the Class M-2
Principal Balance and the Class B Principal Balance.

     "Notes" means the Class A Notes, Class M Notes or Class B Notes.
      -----

     "NRSRO" means any nationally recognized statistical rating organization.
      -----

     "MN UCC" means the Uniform Commercial Code as in effect in the State of
      ------
Minnesota.

     "Obligor" means a Product buyer or other Person who is indebted under a
      -------
Contract.

     "Officer's Certificate" means, with respect to any Person, a certificate
      ---------------------
signed by the Chairman of the Board, President or any Vice President of such
Person and delivered to the Owner Trustee and/or the Trustee as applicable.

     "Opinion of Counsel" means a written opinion of counsel, who may, except as
      ------------------
expressly provided herein, be salaried counsel for the Servicer, acceptable to
the Indenture Trustee, the Owner Trustee and the Seller.

                                     1-16
<PAGE>

     "Original Class A-1 Principal Balance" means $170,800,000.
      ------------------------------------

     "Original Class A-2 Principal Balance" means $25,000,000.
      ------------------------------------

     "Original Class A-3 Principal Balance" means $36,600,000.
      ------------------------------------

     "Original Class M-1 Principal Balance" means $14,000,000.
      ------------------------------------

     "Original Class M-2 Principal Balance" means $11,200,000.
      ------------------------------------

     "Original Class B Principal Balance" means $16,800,000.
      ----------------------------------

     "Original Class Principal Balance" means, with respect to any Class, the
      --------------------------------
Original Class A-1 Principal Balance, the Original Class A-2 Principal Balance,
the Original Class A-3 Principal Balance, the Original Class M-1 Principal
Balance, the Original Class M-2 Principal Balance or the Original Class B
Principal Balance, as appropriate.

     "Original Note Principal Balance" means the sum of the Original Class A-1
      -------------------------------
Principal Balance, the Original Class A-2 Principal Balance, the Original Class
A-3 Principal Balance, the Original Class M-1 Principal Balance, the Original
Class M-2 Principal Balance and the Original Class B Principal Balance.

     "Overcollateralization Amount" means, for any Distribution Date, the excess
      ----------------------------
of (A) the sum of the Pool Scheduled Principal Balance plus the Pre-Funded
Amount over (B) the Note Principal Balance minus the amount actually deposited
in the Note Distribution Account on such Distribution Date in respect of
principal on the Notes pursuant to Sections 6.04(a)(viii) and (xii).

     "Owner Trustee" means Wilmington Trust Company, acting not individually but
      -------------
solely as trustee, or its successor in interest, and any successor appointed as
provided in the Trust Agreement.

     "Partial Principal Prepayment" means (a) any Principal Prepayment other
      ----------------------------
than a Principal Prepayment in Full and (b) any cash amount deposited in the
Collection Account pursuant to the proviso in Section 3.05(a).

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

     "Pool Scheduled Principal Balance" means, as of any Distribution Date, the
      --------------------------------
aggregate Scheduled Principal Balance of all Contracts that were outstanding
during the related Monthly Period.

     "Post-Funding Distribution Date" means the first Distribution Date after
      ------------------------------
the last day of the Pre-Funding Period.

                                     1-17
<PAGE>

     "Pre-Funded Amount" means with respect to any date of determination, the
      -----------------
amount then on deposit in the Pre-Funding Account, after giving effect to any
sale of Subsequent Contracts to the Trust on such date.

     "Pre-Funding Account" means the account so designated, established and
      -------------------
maintained pursuant to Section 6.06.

     "Pre-Funding Period" means the period beginning on the Closing Date and
      ------------------
ending on the earliest of (a) the date on which the amount on deposit in the
Pre-Funding Account is less than $10,000.00, (b) the close of business on August
14, 2000, or (c) the date on which a Servicer Termination Event occurs.

     "Principal Prepayment" means a payment or other recovery of principal on a
      --------------------
Contract (exclusive of Liquidation Proceeds) which is received in advance of its
scheduled due date and applied upon receipt (or, in the case of a Partial
Principal Prepayment, upon the next Due Date on such Contract) to reduce the
outstanding principal amount due on such Contract prior to the date or dates on
which such principal amount is due.

     "Principal Prepayment in Full" means any Principal Prepayment of the entire
      ----------------------------
principal balance of a Contract.

     "Realized Losses" means, with respect to any Distribution Date, the
      ---------------
aggregate Net Liquidation Losses of all Contracts that become Liquidated
Contracts during the related Monthly Period.

     "Record Date" means the Business Day immediately preceding the related
      -----------
Distribution Date.

     "Related Documents" means the Transfer Agreement, the Trust Agreement, the
      -----------------
Indenture, the Administration Agreement, the Certificates, the Notes and the
Underwriting Agreement.  The Related Documents executed by any party are
referred to herein as "such party's Related Documents," "its Related Documents"
or by a similar expression.

     "Repurchase Price" means, with respect to a Contract to be repurchased
      ----------------
pursuant to Section 3.05 or Section 5.20, an amount equal to (a) the remaining
principal amount outstanding on such Contract, plus (b) interest at the Contract
Rate on such Contract from the end of the Monthly Period with respect to which
the Obligor last made a payment through the end of the Monthly Period during
which such repurchase occurs.

     "Reserve Account" means the account designated as the Reserve Account in,
      ---------------
and which is established and maintained pursuant to, Section 6.08.

     "Reserve Account Excess Amount" means, with respect to any Distribution
      -----------------------------
Date, an amount equal to the excess, if any, of:

                                     1-18
<PAGE>

          (a) the amount of cash or other immediately available funds in the
     Reserve Account on the Distribution Date, prior to giving effect to any
     withdrawals from the Reserve Account relating to that Distribution Date,
     over

          (b) the Specified Reserve Balance with respect to that Distribution
     Date.

     "Responsible Officer" means, with respect to the Owner Trustee, the
      -------------------
chairman and any vice chairman of the board of directors, the president, the
chairman and vice chairman of any executive committee of the board of directors,
every vice president, assistant vice president, the secretary, every assistant
secretary, cashier or any assistant cashier, controller or assistant controller,
the treasurer, every assistant treasurer, every trust officer, assistant trust
officer and every other officer or assistant officer of the Trustee customarily
performing functions similar to those performed by persons who at the time shall
be such officers, respectively, or to whom a corporate trust matter is referred
because of knowledge of, familiarity with, and authority to act with respect to
a particular matter.

     "Sale Date" means the Distribution Date as of which the corpus of the Trust
      ---------
is sold pursuant to Section 10.04 of the Indenture or Section 9.03 of the Trust
Agreement.

     "Scheduled Principal Balance" means, as to any Contract and any
      ---------------------------
Distribution Date or the Cutoff Date, the principal balance of such Contract as
of the Due Date in the Monthly Period immediately preceding such Distribution
Date or as of the Due Date immediately preceding the Cutoff Date, as the case
may be, as specified in the amortization schedule at the time relating thereto
(before any adjustment to such amortization schedule by reason of any bankruptcy
of an Obligor or similar proceeding or any moratorium or similar waiver or grace
period) after giving effect to any previous Partial Principal Prepayments and to
the payment of principal due on such Due Date and irrespective of any
delinquency in payment by, or extension granted to, the related Obligor.

     "Securities" means the Notes and the Certificates.
      ----------

     "Securityholders" means the Noteholders and the Certificateholders.
      ---------------
"Service Transfer" has the meaning assigned in Section 7.02.

     "Servicer" means Conseco Finance Corp., a Delaware corporation, until any
      --------
Service Transfer hereunder and thereafter means the new servicer appointed
pursuant to Article VII.

     "Servicer Advance" means, with respect to any Distribution Date, the
      ----------------
amount, if any, deposited by the Servicer in the Collection Account pursuant to
Section 5.13.

     "Servicing Officer" means any officer of the Servicer involved in, or
      -----------------
responsible for, the administration and servicing of Contracts whose name
appears on a list of servicing officers appearing in an Officer's Certificate
furnished to the Trustee by the Servicer, as the same may be amended from time
to time.

                                     1-19
<PAGE>

     "Sixty-Day Delinquency Ratio" means, for any Distribution Date, a fraction,
      ---------------------------
expressed as a percentage, the numerator of which is the aggregate of the
outstanding balances of all Contracts that were delinquent 60 days or more as of
the end of the prior Monthly Period (including such Contracts in respect of
which the related Product has been foreclosed upon but is still in inventory),
and the denominator of which is the Pool Scheduled Principal Balance of the
Contracts for such Distribution Date.

     "Specified Reserve Balance" means
      -------------------------

          (i)  prior to the Distribution Date in July 2002, $7,000,000;

          (ii) beginning on the Distribution Date in July 2002, $5,600,000,
     provided that:

               (a) the Average Sixty-Day Delinquency Ratio as of the
          Distribution Date in July 2002 does not exceed 10%;

               (b) the Cumulative Realized Loss Ratio as of the Distribution
          Date in July 2002 does not exceed 2.50%; and

               (c) Conseco Finance or an Affiliate is the Servicer on the
          Distribution Date in July 2002.

     "Standard & Poor's" means Standard & Poor's Ratings Service, or any
      -----------------
successor thereto; provided that if Standard & Poor's no longer has a rating
outstanding on any Class of Notes or Certificates, then references herein to
"Standard & Poor's" shall be deemed to refer to the NRSRO then rating any Class
of the Notes or Certificates (or, if more than one such NRSRO is then rating any
Class of the Notes or Certificates, to such NRSRO as may be designated by the
Servicer), and references herein to ratings by or requirements of Standard &
Poor's shall be deemed to have the equivalent meanings with respect to ratings
by or requirements of such NRSRO.

     "Stepdown Date" means the first Payment Date on which the Class A-1
      -------------
Principal Balance is less than or equal to $22,400,000.

     "Subsequent Cut-off Date" means the date specified as such in the
      -----------------------
applicable Subsequent Transfer Instrument.

     "Subsequent Contract" means a Contract sold by the Seller to the Trust
      -------------------
pursuant to Section 2.03, such Contract being identified as such in the
Subsequent Transfer Instrument.

     "Subsequent Transfer Date" means, with respect to each Subsequent Transfer
      ------------------------
Instrument, the date on which the related Subsequent Contracts are sold to the
Trust.

     "Subsequent Transfer Instrument" means each Subsequent Transfer Instrument
      ------------------------------
dated as of a Subsequent Transfer Date executed by the Owner Trustee, the
Originator and the Seller

                                     1-20
<PAGE>

substantially in the form of Exhibit F, by which the Seller sells Subsequent
Contracts to the Trust.

     "Total Note Principal Distribution Amount" means, for any Distribution
      ----------------------------------------
Date, the sum of:

          (i)   the Formula Principal Distribution Amount for such Distribution
     Date, plus

          (ii)  the Unpaid Formula Principal Shortfall, if any, for such
     Distribution Date, plus

          (iii) the Additional Principal Distribution Amount, minus

          (iv)  for any Distribution Date beginning with the July 2002
     Distribution Date, so long as no Trigger Event exists, the amount, if any,
     by which the Overcollateralization Amount would otherwise exceed 10% of the
     Pool Scheduled Principal Balance.

     "Total Required Payment" means, with respect to any Distribution Date, the
      ----------------------
sum of the amounts distributable pursuant to clauses 6.04(a)(i) through
6.04(a)(vii) without regard to the limitation of the Amount Available for such
Distribution Date plus, on the Final Scheduled Distribution Date for any Class
of Notes, the outstanding principal balance of such Class.

     "Trigger Event" exists for any Distribution Date if (i) the Average Sixty-
      -------------
Day Delinquency Ratio Test is not satisfied or (ii) the Cumulative Realized
Losses Test is not satisfied.

     "Trust" means the Conseco Finance Recreational Enthusiast Consumer Trust
      -----
2000-A.

     "Trust Accounts" means the Collection Account, the Note Distribution
      --------------
Account, the Certificate Distribution Account, the Pre-Funding Account, the
Reserve Account and the Class B Reserve Account.

     "Trust Agreement" means the Trust Agreement dated as of June 1, 2000
      ---------------
between the Seller and the Owner Trustee, as the same may be amended and
supplemented from time to time.

     "Trust Property" means the property conveyed to the Trust pursuant to
      --------------
Section 2.01(a) and Section 2.03.

     "Uncollectible Advance" means, with respect to any Determination Date, the
      ---------------------
portion of any Servicer Advances which the Servicer has determined in good faith
will not be ultimately recoverable by the Servicer from insurance policies on
the Product, the Obligor or out of Net Liquidation Proceeds.  The determination
by the Servicer that it has made an Uncollectible Advance shall be evidenced by
an Officer's Certificate delivered to the Trustee.

     "Underwriters" means Credit Suisse First Boston Corporation and Banc of
      ------------
America Securities LLC.

                                     1-21
<PAGE>

     "Underwriting Agreement" means the Underwriting Agreement and related Terms
      ----------------------
Agreement, each dated June 27, 2000, among the Originator, the Seller and the
Underwriters.

     "Unpaid Class A Interest Shortfall" means as to any Distribution Date, the
      ---------------------------------
sum of Unpaid Class A-1 Interest Shortfall, Unpaid Class A-2 Interest Shortfall
and Unpaid Class A-3 Interest Shortfall for such Distribution Date.

     "Unpaid Class A-1 Interest Shortfall" means, as to any Distribution Date,
      -----------------------------------
the remainder, if any, of (x) the Class A-1 Interest Shortfall, if any, for the
immediately prior Distribution Date, plus (y) the Unpaid Class A-1 Interest
Shortfall, if any, determined as of such immediately prior Distribution Date,
minus (z) the amount distributed to the Holders of Class A-1 Notes on account of
any Unpaid Class A-1 Interest Shortfall on such immediately prior Distribution
Date, plus accrued interest (to the extent payment thereof is legally
permissible) at the Class A-1 Interest Rate on such remainder from such
immediately prior Distribution Date to the current Distribution Date.

     "Unpaid Class A-2 Interest Shortfall" means, as to any Distribution Date,
      -----------------------------------
the remainder, if any, of (x) the Class A-2 Interest Shortfall, if any, for the
immediately prior Distribution Date, plus (y) the Unpaid Class A-2 Interest
Shortfall, if any, determined as of such immediately prior Distribution Date,
minus (z) the amount distributed to the Holders of Class A-2 Notes on account of
any Unpaid Class A-2 Interest Shortfall on such immediately prior Distribution
Date, plus accrued interest (to the extent payment thereof is legally
permissible) at the Class A-2 Interest Rate on such remainder from such
immediately prior Distribution Date to the current Distribution Date.

     "Unpaid Class A-3 Interest Shortfall" means, as to any Distribution Date,
      -----------------------------------
the remainder, if any, of (x) the Class A-3 Interest Shortfall, if any, for the
immediately prior Distribution Date, plus (y) the Unpaid Class A-3 Interest
Shortfall, if any, determined as of such immediately prior Distribution Date,
minus (z) the amount distributed to the Holders of Class A-3 Notes on account of
any Unpaid Class A-3 Interest Shortfall on such immediately prior Distribution
Date, plus accrued interest (to the extent payment thereof is legally
permissible) at the Class A-3 Interest Rate on such remainder from such
immediately prior Distribution Date to the current Distribution Date.

     "Unpaid Class B Interest Shortfall" means, as to any Distribution Date, the
      ---------------------------------
remainder, if any, of (x) the Class B Interest Shortfall, if any, for the
immediately prior Distribution Date, plus (y) the Unpaid Class B Interest
Shortfall, if any, determined as of such immediately prior Distribution Date,
minus (z) the amount distributed to the Holders of Class B Notes on account of
any Unpaid Class B Interest Shortfall on such immediately prior Distribution
Date, plus accrued interest (to the extent payment thereof is legally
permissible) at the Class B Interest Rate on such remainder from such
immediately prior Distribution Date to the current Distribution Date.

     "Unpaid Class M-1 Interest Shortfall" means, as to any Distribution Date,
      -----------------------------------
the remainder, if any, of (x) the Class M-1 Interest Shortfall, if any, for the
immediately prior Distribution Date, plus (y) the Unpaid Class M-1 Interest
Shortfall, if any, determined as of such immediately prior

                                     1-22
<PAGE>

Distribution Date, minus (z) the amount distributed to the Holders of Class M-1
Notes on account of any Unpaid Class M-1 Interest Shortfall on such immediately
prior Distribution Date, plus accrued interest (to the extent payment thereof is
legally permissible) at the Class M-1 Interest Rate on such remainder from such
immediately prior Distribution Date to the current Distribution Date.

     "Unpaid Class M-2 Interest Shortfall" means, as to any Distribution Date,
      -----------------------------------
the remainder, if any, of (x) the Class M-2 Interest Shortfall, if any, for the
immediately prior Distribution Date, plus (y) the Unpaid Class M-2 Interest
Shortfall, if any, determined as of such immediately prior Distribution Date,
minus (z) the amount distributed to the Holders of Class M-2 Notes on account of
any Unpaid Class M-2 Interest Shortfall on such immediately prior Distribution
Date, plus accrued interest (to the extent payment thereof is legally
permissible) at the Class M-2 Interest Rate on such remainder from such
immediately prior Distribution Date to the current Distribution Date.

     "Unpaid Formula Principal Shortfall" means, as of any Distribution Date,
      ----------------------------------
the remainder, if any, of (x) the Formula Principal Shortfall, if any, for the
immediately prior Distribution Date, plus (y) the Unpaid Formula Principal
Shortfall, if any, determined as of such immediately prior Distribution Date,
minus (z) the amount included, if any, in excess of the Formula Principal
Distribution Amount for such immediately prior Distribution Date that was
included in the Total Note Principal Distribution Amount actually deposited in
the Note Distribution Account on such immediately prior Distribution Date.

     "Weighted Average Contract Rate" means, as to any Distribution Date, the
      ------------------------------
weighted average (determined by Scheduled Principal Balance) of the Contract
Rates of all Contracts that were outstanding during the prior related Monthly
Period.

                                     1-23
<PAGE>

                                  ARTICLE II

                             TRANSFER OF CONTRACTS

     SECTION 2.01.  Transfer of Contracts.
                    ---------------------

     (a) Subject to the terms and conditions of this Agreement, the Seller
hereby irrevocably and unconditionally transfers, assigns, sets over and
otherwise conveys to the Trust by execution of an Assignment substantially in
the form of Exhibit A hereto all right, title and interest of the Seller in and
to (1) the Initial Contracts (including, without limitation, the Collateral
Security), and all moneys payable thereon or in respect to the Initial
Contracts, including any liquidation proceeds therefrom but excluding payments
due on the Initial Contracts prior to the Initial Cutoff Date, (2) the Insurance
Policies on any Products securing an Initial Contract for the benefit of the
creditor of such Initial Contract and all blanket insurance policies to the
extent they relate to the Initial Contracts, (3) the Transfer Agreement and each
Subsequent Transfer Agreement, (4) the Errors and Omissions Protection Policy as
such policy relates to the Contracts, (5) all items contained in the Contract
Files, (6) the Trust Accounts and all funds on deposit therein from time to time
and all investments and proceeds thereof (including all income thereon), and (7)
all proceeds and products of the foregoing.

     (b) Although the parties intend that the conveyance pursuant to this
Agreement of the Seller's right, title and interest in and to the Contracts and
the Collateral Security pursuant to this Agreement and each Subsequent Transfer
Instrument shall constitute a purchase and sale and not a pledge of security for
loans from the Certificateholders and/or the Noteholders, if such conveyances
are deemed to be a pledge of security for loans from the Certificateholders, the
Noteholders or any other Persons (the "Secured Obligations"), the parties intend
that the rights and obligations of the parties to the Secured Obligations shall
be established pursuant to the terms of this Agreement.  The parties also intend
and agree that the Seller shall be deemed to have granted to the Trust, and the
Seller does hereby grant to the Trust, a perfected first-priority security
interest in the items designated in Section 2.01(a)(1) through 2.01(a)(6) above,
and all proceeds thereof, to secure the Secured Obligations, and that this
Agreement shall constitute a security agreement under applicable law.  If the
trust created by this Agreement terminates prior to the satisfaction of the
claims of any Person under any Certificates, any Notes or the Secured
Obligations, the security interest created hereby shall continue in full force
and effect and the Owner Trustee shall be deemed to be the collateral agent for
the benefit of such Person.

     SECTION 2.02.  Conditions to Acceptance by Owner Trustee.
                    -----------------------------------------

     As conditions to the Owner Trustee's execution and delivery of the Notes on
behalf of the Trust and the execution, authentication and delivery of the
Certificates on behalf of the Trust on the Closing Date, the Owner Trustee on
behalf of the Trust shall have received the following on or before the Closing
Date:

          (a) The List of Contracts, certified by the Chairman of the Board,
     President or any Vice President of the Originator (which certification may
     be part of the Assignment delivered pursuant to Section 2.02(f)).

                                      2-1
<PAGE>

          (b) A letter from PricewaterhouseCoopers LLP or another nationally
     recognized accounting firm, stating that such firm has reviewed the Initial
     Contracts on a statistical sampling basis and, based on such sampling,
     concluding that, except with respect to those Initial Contracts so
     specified in the letter, the Contracts conform in all material respects to
     the List of Contracts, to a confidence level of 97.5%, with an error rate
     generally not in excess of 1.8%.

          (c) Copies of resolutions of the board of directors of the Seller and
     the Originator or of the executive committee of the board of directors of
     the Seller and the Originator approving the execution, delivery and
     performance of this Agreement, its Related Documents and the transactions
     contemplated hereunder, certified in each case by the secretary or an
     assistant secretary of the Seller and the Originator, as applicable.

          (d) Officially certified recent evidence of due incorporation and good
     standing of the Seller under the laws of the State of Minnesota and of the
     Servicer under the laws of the State of Delaware.

          (e) Evidence of filing with the Secretary of State of Minnesota of (i)
     a UCC-1 financing statement, executed by the Originator as debtor, naming
     the Seller as secured party and listing the Contracts as collateral, and
     (ii) a UCC-1 financing statement, executed by the Seller as debtor, naming
     the Trust as secured party and listing the Contracts as collateral.

          (f) An executed copy of the Assignment substantially in the form of
     Exhibit A hereto.

          (g) Evidence of continued coverage of the Servicer under the Errors
     and Omissions Protection Policy.

          (h) Evidence of deposit in the Collection Account of all funds
     received with respect to the Initial Contracts prior to the Closing Date
     which were due on or after the Initial Cutoff Date, together with an
     Officer's Certificate of the Servicer to the effect that such amount is
     correct.

          (i) An Officer's Certificate of the Originator confirming that the
     Originator's internal audit department has reviewed the original or a copy
     of each Contract and each Contract File, that each Contract and Contract
     File conforms in all material respects with the List of Contracts and that
     each Contract File is complete in all material respects and that each
     Product securing a Contract is covered by an Insurance Policy as required
     by Section 3.02(f).

          (j) Evidence of the deposit of $22,667,397.69 in the Pre-Funding
     Account.

          (k) Such other documents and certificates as the Trust may request.

                                      2-2
<PAGE>

     SECTION 2.03.  Conveyance of the Subsequent Contracts.
                    --------------------------------------

     (a) Subject to the conditions set forth in paragraph (b) below, in
consideration of the Indenture Trustee's delivery on the related Subsequent
Transfer Dates to or upon the order of the Seller of the purchase price
therefor, the Seller shall on any Subsequent Transfer Date sell, transfer,
assign, set over and convey to the Trust by execution and delivery of a
Subsequent Transfer Instrument, all the right, title and interest of the Seller
in and to the Subsequent Contracts identified on the List of Contracts attached
to the Subsequent Transfer Instrument, including all rights to receive payments
on or with respect to the Subsequent Contracts due after the related Subsequent
Cut-off Date, all items with respect to such Subsequent Contracts in the related
Contract Files, and all rights of the Seller under the related Subsequent
Transfer Agreement.  The transfer to the Trust by the Seller of the Subsequent
Contracts shall be absolute and is intended by the Seller, the Owner Trustee,
the Indenture Trustee, the Noteholders and the Certificateholders to constitute
and to be treated as a sale of the Subsequent Contracts by the Seller to the
Trust.

     The purchase price paid by the Trust shall be one hundred percent (100%) of
the aggregate Cut-off Date Principal Balance of such Subsequent Contracts.  The
purchase price of Subsequent Contracts shall be paid solely from amounts in the
Pre-Funding Account.

     (b) The Seller shall transfer to the Trust the Subsequent Contracts, and
the Trust shall release funds equal to the purchase price therefor from the Pre-
Funding Account only upon the satisfaction of each of the following conditions
on or prior to the related Subsequent Transfer Date:

          (i)   the Seller shall have provided the Owner Trustee and the
     Indenture Trustee with an Addition Notice, with a copy of such Addition
     Notice to S&P and Moody's, at least five Business Days prior to the
     Subsequent Transfer Date and shall have provided any information reasonably
     requested by the Owner Trustee and the Indenture Trustee with respect to
     the Subsequent Contracts;

          (ii)  the Seller shall have delivered to the Owner Trustee a duly
     executed Subsequent Transfer Instrument substantially in the form of
     Exhibit F, which shall include a List of Contracts identifying the related
     Subsequent Contracts;

          (iii) as of each Subsequent Transfer Date, as evidenced by delivery of
     the Subsequent Transfer Instrument, the Seller shall not be insolvent nor
     shall it have been made insolvent by such transfer nor shall it be aware of
     any pending insolvency;

          (iv)  the Pre-Funding Period shall not have ended;

          (v)   the Seller shall have delivered to the Trustee an Officer's
     Certificate, substantially in the form attached hereto as Exhibit G,
     confirming the satisfaction of each condition precedent and the
     representations specified in this Section 2.03 and in Sections 3.01, 3.02,
     3.03 and 3.04; and

                                      2-3
<PAGE>

          (vi) the Seller and the Originator shall have delivered to the Trustee
     Opinions of Counsel addressed to S&P, Moody's, the Owner Trustee and the
     Indenture Trustee with respect to the transfer of the Subsequent Contracts
     substantially in the form of the Opinions of Counsel delivered on the
     Closing Date regarding certain bankruptcy, corporate and tax matters.

     (c) Before the last day of the Pre-Funding Period, the Seller shall deliver
to the Trustee evidence that, as a result of the purchase by the Trust of the
Subsequent Contracts, none of the ratings assigned to the Securities as of the
Closing Date by S&P or Moody's will be reduced, withdrawn or qualified.

     (d) Although the parties intend that the conveyance pursuant to each
Subsequent Transfer Instrument of the Seller's right, title and interest in and
to the related Subsequent Contracts shall constitute a purchase and sale and not
a pledge of security for loans from the Certificateholders and/or the
Noteholders, if such conveyance is deemed to be a pledge of security for Secured
Obligations, the parties intend that the rights and obligations of the parties
to the Secured Obligations shall be established pursuant to the terms of this
Agreement and the related Subsequent Transfer Instrument and that the Seller
shall be deemed to have granted to the Trust, and the Seller hereby grant to the
Trust, a perfected first-priority security interest in the items designated in
the related Subsequent Transfer Instrument, and all proceeds thereof, to secure
the Secured Obligations, and that this Agreement and the related Subsequent
Transfer Instrument shall constitute a security agreement under applicable law.
If the Trust terminates prior to the satisfaction of the claims of any Person
under any Certificate, any Note or the Secured Obligations, the security
interest created hereby shall continue in full force and effect and the Owner
Trustee shall be deemed to be the collateral agent for the benefit of such
Person.

                                      2-4
<PAGE>

                                  ARTICLE III

                        REPRESENTATIONS AND WARRANTIES

     Each of the Seller and the Originator makes the following representations
and warranties, effective as of the Closing Date, on which the Trust will rely
in accepting the Contracts and the other Trust Property in trust and on which
the Owner Trustee relies in executing and delivering, on behalf of the Trust,
the Certificates and the Notes.  The repurchase obligation of the Originator set
forth in Section 3.05 constitutes the sole remedy available to the Trust, the
Owner Trustee, the Indenture Trustee, and the Securityholders for a breach of a
representation or warranty of the Originator set forth in the Officer's
Certificate delivered pursuant to Section 2.02(i) or Section 3.02, 3.03 or 3.04
of this Agreement.

     SECTION 3.01.  Representations and Warranties Regarding the Seller and
                    -------------------------------------------------------
Originator and Covenants of the Originator.
------------------------------------------

     The representations and warranties set forth in this Section 3.01 shall
survive delivery by the Seller of the Contracts and the Contract Files.  As
promptly as practicable, but in any event within 60 days of its discovery or its
receipt of notice from any Person of a material breach of any representation or
warranty in this Section 3.01, the Originator shall cure such breach in all
material respects.

     (a) Organization and Good Standing.  Each of the Seller and the Originator,
         ------------------------------
as applicable, is a corporation duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization and has the
corporate power to own its assets and to transact the business in which it is
currently engaged.  Each of the Seller and the Originator, as applicable, is
duly qualified to do business as a foreign corporation and is in good standing
in each jurisdiction in which the character of the business transacted by it or
properties owned or leased by it requires such qualification and in which the
failure so to qualify would have a material adverse effect on the business,
properties, assets, or condition (financial or other) of the Seller.

     (b) Authorization; Binding Obligations.  Each of the Seller and the
         ----------------------------------
Originator has the power and authority to make, execute, deliver and perform
this Agreement and its Related Documents and all of the transactions
contemplated under this Agreement and thereunder and to sell and assign the
Trust Property to be sold and assigned to the Trust by it and has taken all
necessary corporate action to authorize the execution, delivery and performance
of this Agreement and its Related Documents.  When executed and delivered, this
Agreement and its Related Documents will constitute the legal, valid and binding
obligations of each of the Seller and the Originator enforceable in accordance
with their terms, except as enforcement of such terms may be limited by
bankruptcy, insolvency or similar laws affecting the enforcement of creditors'
rights generally and by the availability of equitable remedies.

     (c) No Consent Required.  Neither the Seller nor the Originator is required
         -------------------
to obtain the consent of any other party or any consent, license, approval or
authorization from, or registration or declaration with, any governmental
authority, bureau or agency in connection with

                                      3-1
<PAGE>

the execution, delivery, performance, validity or enforceability of this
Agreement.

     (d)  No Violations.  The execution, delivery and performance by the Seller
          -------------
and the Originator of this Agreement and its Related Documents and the
fulfillment of their terms will not violate any provision of any existing law or
regulation or any order or decree of any court or the related Articles of
Incorporation or Bylaws of the Seller and the Originator, or constitute a
material breach of any mortgage, indenture, contract or other agreement to which
either the Seller or the Originator is a party or by which either the Seller or
the Originator may be bound.

     (e)  Litigation.  No litigation or administrative proceeding of or before
          ----------
any court, tribunal or governmental body is currently pending, or to the
knowledge of the Seller and the Originator threatened, against the Seller and
the Originator or any of its properties or with respect to this Agreement, the
Related Documents, or the Securities which, if adversely determined, would in
the opinion of the Seller and the Originator have a material adverse effect on
the transactions contemplated by this Agreement and Related Documents.

     (f)  Licensing.  Each of the Seller and the Originator is duly registered
          ---------
as a finance company in each state in which Contracts were originated, to the
extent such registration is required by applicable law.

     (g)  Chief Executive Office.  The chief executive office of each of the
          ----------------------
Seller and the Originator is at 1100 Landmark Towers, 345 St. Peter Street, St.
Paul, Minnesota 55102-1639.

     (h)  Absolute Sale.  The Seller intends that the transfer of Contracts and
          -------------
the Collateral Security constitute a complete and absolute sale, removing the
Contracts and the Collateral Security from the Seller's estate, for purposes of
Section 541 of the United States Bankruptcy Code, as amended.

     (i)  No Default.  Neither the Seller nor the Originator is in default with
          ----------
respect to any order or decree of any court or any order, regulation or demand
of any federal, state, municipal or governmental agency, which default would
materially and adversely affect its condition (financial or other) or operations
or its properties or the consequences of which would materially and adversely
affect its performance hereunder and under its other Related Documents.  Neither
the Seller nor the Originator is in default under any agreement involving
financial obligations or on any outstanding obligation which would materially
adversely impact its financial condition or operations or legal documents
associated with the transaction contemplated by this Agreement or the other
Related Documents.

     SECTION 3.02.  Representations and Warranties Regarding Each Contract.
                    ------------------------------------------------------

     The Originator has made the following representations and warranties to the
Seller in the Transfer Agreement, which representations and warranties the
Seller has assigned to the Trust for the benefit of the Noteholders and the
Certificateholders, as of the Closing Date with respect to each Initial Contract
and, as of each Subsequent Transfer Date, with respect to each Subsequent
Contract identified on the List of Contracts attached to the related Subsequent
Transfer Instrument:

                                      3-2
<PAGE>

     (a)  List of Contracts.  The information set forth in the List of Contracts
          -----------------
is true and correct as of its date.

     (b)  Payments.  The most recent scheduled payment was made by or on behalf
          --------
of the Obligor (without any advance from the Seller, the Originator or any
Person acting at the request of the Seller or the Originator) or was not
delinquent for more than 59 days.

     (c)  No Waivers.  The terms of the Contract have not been waived, altered
          ----------
or modified in any respect, except by instruments or documents identified in the
Contract File.

     (d)  Binding Obligation.  The Contract is the legal, valid and binding
          ------------------
obligation of the Obligor thereunder and is enforceable in accordance with its
terms, except as such enforceability may be limited by laws affecting the
enforcement of creditors' rights generally.

     (e)  No Defenses.  The Contract is not subject to any right of rescission,
          -----------
setoff, counterclaim or defense, including the defense of usury, and the
operation of any of the terms of the Contract or the exercise of any right
thereunder will not render the Contract unenforceable in whole or in part or
subject 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.

     (f)  Insurance Coverage.  The Product securing the Contract is covered by
          ------------------
an Insurance Policy to the extent (if any) required by Section 5.09. All
premiums due as of the Closing Date on such insurance have been paid in full.

     (g)  Origination.  The Contract was originated by a dealer of recreational
          -----------
vehicles, motorcycles or marine products, or by the Originator, in the regular
course of its business and, if originated by a dealer, was purchased by the
Originator in the regular course of its business.

     (h)  Lawful Assignment.  The Contract was not originated in and is not
          -----------------
subject to the laws of any jurisdiction whose laws would make the transfer of
the Contract or an interest therein pursuant to the Transfer Agreement or this
Agreement, or pursuant to transfers of the Securities, unlawful or render the
Contract unenforceable.

     (i)  Compliance with Law.  At the date of origination of the Contract, all
          -------------------
requirements of any federal and state laws, rules and regulations applicable to
the Contract, including, without limitation, usury, truth in lending and equal
credit opportunity laws, have been complied with, and the Originator shall for
at least the period of this Agreement, maintain in its possession, available for
the Owner Trustee's inspection, and shall deliver to the Owner Trustee upon
demand, evidence of compliance with all such requirements.  Such compliance is
not affected by the Trust's ownership of the Contract.

     (j)  Contract in Force.  The Contract has not been satisfied or
          -----------------
subordinated in whole or in part or rescinded, and the Product securing the
Contract has not been released from the lien of the Contract in whole or in
part.

                                      3-3
<PAGE>

     (k)  Valid Security Interest.  The Contract creates a valid and enforceable
          -----------------------
perfected first priority security interest in favor of the Originator in the
Product covered thereby as security for payment of the Cutoff Date Principal
Balance of such Contract.  The Originator has assigned all of its right, title
and interest in such Contract, including the security interest in the Product
covered thereby, to the Seller.  The Seller has and will have a valid and
perfected and enforceable first priority security interest in such Contract and
Product.

     (l)  Capacity of Parties.  The signature(s) of the Obligor(s) on the
          -------------------
Contract are genuine and all parties to the Contract had full legal capacity to
execute the Contract.

     (m)  Good Title.  In the case of a Contract purchased from a dealer, the
          ----------
Originator purchased the Contract for fair value and took possession thereof in
the ordinary course of its business, without knowledge that the Contract was
subject to a security interest.  The Originator has not sold, assigned or
pledged the Contract to any person and prior to the transfer of the Contract by
the Originator to the Seller, the Originator had good and marketable title
thereto free and clear of any encumbrance, equity, contract, pledge, charge,
claim or security interest and was the sole owner thereof with full right to
transfer the Contract to the Seller.  No financing statement describing or
referring to any Contract (other than any financing statement naming the Seller
as secured party, or filed by the Originator as secured party to perfect its
interest in a Contract purchased from a dealer) is on file in any public office.

     (n)  No Defaults.  There was no default, breach, violation or event
          -----------
permitting acceleration existing under the Contract and no event which, with
notice and the expiration of any grace or cure period, would constitute such a
default, breach, violation or event permitting acceleration under such Contract
(except payment delinquencies permitted by clause (b) above). The Originator has
not waived any such default, breach, violation or event permitting acceleration
except payment delinquencies permitted by clause (b) above.  As of the Closing
Date, the related Product is, to the best of the Originator's knowledge, free of
damage and in good repair.

     (o)  No Liens.  There are, to the best of the Originator's knowledge, no
          --------
liens or claims which have been filed for work, labor or materials affecting the
Product securing the Contract which are or may be liens prior to, or equal or
coordinate with, the lien of the Contract.

     (p)  Equal Installments.  Each Contract has a fixed Contract Rate and
          ------------------
provides for substantially level monthly payments which fully amortize the
contract over its term.

     (q)  Enforceability.  The Contract contains customary and enforceable
          --------------
provisions so as to render the rights and remedies of the holder thereof
adequate for the realization against the collateral of the benefits of the
security provided thereby.

     (r)  One Original.  There is only one original executed Contract (other
          ------------
than an original in the possession of the relevant Obligor), which Contract has
been delivered to the Trust or its custodian on or before the Closing Date. Each
Contract has been stamped to reflect the assignment of such Contract to the
Trust.

                                      3-4
<PAGE>

     (s)   Notation of Security Interest.  With respect to each Contract, if the
           -----------------------------
related Product is located in a state in which notation of a security interest
on the title document is required or permitted to perfect such security
interest, the title document shows, or if a new or replacement title document
with respect to such Product is being applied for such title document will be
issued within 180 days and will show, the Originator as the holder of a first
priority security interest in such Product; if the related Product is located in
a state in which the filing of a financing statement under the UCC is required
to perfect a security interest in goods of the type including the Product, such
filings or recordings have been duly made and show the Originator as secured
party.  In any case, the Trust has the same rights as the secured party of
record would have (if such secured party were still the owner of the Contract)
against all Persons (including the Originator and any trustee in bankruptcy of
the Originator) claiming an interest in such Product.

     (t)   No Government Contracts.  No Obligor is the United States government
           -----------------------
or an agency, authority, instrumentality or other political subdivision of the
United States government.

     SECTION 3.03.  Representations and Warranties Regarding the Contracts in
                    ---------------------------------------------------------
the Aggregate.
-------------

     (a)   Amounts.  The aggregate principal amounts payable by Obligors under
           -------
the Contracts as of the Cutoff Date equal the Cutoff Date Pool Principal
Balance.

     (b)   Characteristics.  Following the end of the Pre-Funding Period, the
           ---------------
Contracts will have the following characteristics as of the Cutoff Date:

     (i)   a remaining maturity of at least 2 months, but not more than 188
           months;

     (ii)  an original maturity of at least 60 months, but not more than 240
           months;

     (iii) an original principal balance of at least $4,000 and not more than
           $341,300;

     (iv)  a remaining principal balance of at least $500 and not more than
           $311,700; and

     (v)  a contractual rate of interest of at least 7.500% and not
          more than 17.990%.

     (c)  Computer Tape.  The Computer Tape made available by the Originator was
          -------------
complete and accurate as of its date and includes a description of the same
Contracts that are described in the List of Contracts.

     (d)  Marking Records.  By the Closing Date, the Originator has caused the
          ---------------
portions of the Electronic Ledger relating to the Contracts to be clearly and
unambiguously marked to indicate that such Contracts constitute part of the
Trust and are owned by the Trust in accordance with the terms of the trust
created hereunder.

     (e)  No Adverse Selection.  Except for the effect of the representations
          --------------------
and warranties made in Sections 3.02 and 3.03 hereof, no adverse selection
procedures have been employed in selecting the Contracts.

                                      3-5
<PAGE>

     SECTION 3.04.  Representations and Warranties Regarding the Contract Files.
                    -----------------------------------------------------------

     (a)  Possession.  Immediately prior to the Closing Date, the Originator
          ----------
will have possession of each original Contract and the related Contract File and
there are and there will be no custodial agreements in effect materially and
adversely affecting the rights of the Originator to make, or cause to be made,
any delivery required hereunder.

     (b)  Bulk Transfer Laws.  The transfer, assignment and conveyance of the
          ------------------
Contracts and the Contract Files by the Originator pursuant to the Transfer
Agreement, and by Seller pursuant to this Agreement is not subject to the bulk
transfer or any similar statutory provisions in effect in any applicable
jurisdiction.

     SECTION 3.05.  Repurchase of Contracts for Breach of Representations and
                    ---------------------------------------------------------
Warranties.
----------

     (a)  The Originator shall repurchase a Contract, at its Repurchase Price,
not later than the last day of the Monthly Period prior to the Monthly Period
that is 90 days after the day on which the Originator, the Seller, the Servicer,
the Owner Trustee or the Indenture Trustee first discovers, or the Originator or
the Servicer should have discovered, a breach of a representation or warranty of
the Originator set forth in Sections 3.02, 3.03 or 3.04 of this Agreement or the
Officer's Certificate delivered pursuant to Section 2.02(i) that materially
adversely affects the interest of the Trust or the Securityholders in such
Contract and which breach has not been cured; provided, however, that (i) in the
                                              --------  -------
event that a party other than the Originator first becomes aware of such a
breach, such discovering party shall notify the Originator in writing within
five Business Days of the date of such discovery and (ii) with respect to any
Contract incorrectly described on the List of Contracts with respect to unpaid
principal balance, which the Originator would otherwise be required to
repurchase pursuant to this Section, the Originator may, in lieu of repurchasing
such Contract, deposit in the Collection Account no later than the first
Determination Date that is 90 or more days from the date of such discovery cash
in an amount sufficient to cure such deficiency or discrepancy.  Any such cash
so deposited shall be accounted for as a collection of principal or interest on
such Contract, according to the nature of the deficiency or discrepancy.
Notwithstanding any other provision of this Agreement, the obligation of the
Originator under this Section shall not terminate upon a Service Transfer
pursuant to Article VII.

     (b)  Upon receipt by the Trust by deposit in the Collection Account of the
Repurchase Price under subsection (a) above, and upon receipt of a certificate
of a Servicing Officer in the form attached hereto as Exhibit B, the Indenture
Trustee shall release its security interest in such Contract and the Owner
Trustee on behalf of the Trust shall convey and assign to the Originator all of
the Securityholders' right, title and interest in the repurchased Contract
without recourse, representation or warranty, except as to the absence of liens,
charges or encumbrances created by or arising as a result of actions of the
Trust.

     (c)  The Originator shall defend and indemnify the Owner Trustee, the
Trust, the Indenture Trustee, and the Securityholders against all costs,
expenses, losses, damages, claims and liabilities, including reasonable fees and
expenses of counsel, arising out of any claims which may be asserted against or
incurred by any of them as a result of any third-party action

                                      3-6
<PAGE>

arising out of any breach of any representation set forth in the Officer's
Certificate delivered pursuant to Section 2.02(i) or Section 3.02, 3.03 or 3.04
of this Agreement.

     SECTION 3.06.  Covenants Regarding the Seller and Class C
                    ------------------------------------------
Certificateholder.
-----------------

     With respect to the Seller and, for so long as GTFC-2 is the Class C
Certificateholder, with respect to GTFC-2, the Originator covenants that:

          (a)  it will at all times hold out to the public, including the
     respective creditors of the Originator, the Seller and GTFC-2, that it is a
     separate entity from the others.  The Originator, the Seller and GTFC-2
     will not share a common logo.  The Originator will not hold out or consider
     the Seller or GTFC-2 as a department or division of the Originator.

          (b)  Other than the payment of certain of the organizational expenses
     of the Seller and GTFC-2 by the Originator, each of the Seller and GTFC-2
     will be responsible for the payment of all its losses, obligations and
     expenses, and it will be adequately capitalized to conduct its business.

          (c)  All transactions and dealings between the Originator and the
     Seller or GTFC-2 will be on such terms and conditions as would be generally
     available to entities unaffiliated with the Originator in comparable
     transactions.  All such transactions have been and will be made only with
     prior approval of the Seller's or GTFC-2's (as applicable) Board of
     Directors, at arm's length, in good faith, and without the intent to
     hinder, delay or defraud creditors of either entity, and transfers between
     the Originator, the Seller or GTFC-2 will not be made if the party making
     the transfer is insolvent or would be rendered insolvent by the transfer.

          (d)  Following the formation of the Trust, the Originator will
     disclose all material transactions associated with the transaction in
     communications to its shareholders and in public announcements which will
     disclose the separate corporate identity of the Seller and GTFC-2 and that
     the assets of the Seller and GTFC-2 will not be available for payment of
     creditors' claims in the event of the insolvency of the Originator.

          (e)  Each of the Seller and GTFC-2 will comport itself in a manner
     consistent with the factual assumptions contained in the "nonconsolidation
     opinions" of Dorsey & Whitney LLP dated June 29, 2000 rendered in
     connection with the issuance of the Notes.

                                      3-7
<PAGE>

                                  ARTICLE IV

                          PERFECTION OF TRANSFER AND
                       PROTECTION OF SECURITY INTERESTS

     SECTION 4.01.  Custody of Contracts.
                    --------------------

     (a) Subject to the terms and conditions of this Section, the Trust appoints
the Servicer to maintain custody of the Contract Files for the benefit of the
Trust and the Servicer shall maintain custody of the Contract Files for the
benefit of the Trust and shall act as custodian therefor.

     (b) The Servicer agrees to maintain the related Contract Files at its
office where they are currently maintained, or at such other offices of the
Servicer in the State of Minnesota as shall from time to time be identified to
the Trust by written notice.  The Servicer may temporarily move individual
Contract Files or any portion thereof without notice as necessary to conduct
collection and other servicing activities in accordance with its customary
practices and procedures.

     (c) As custodian, the Servicer shall have and perform the following powers
and duties:

         (i)   hold the Contract Files on behalf of the Trust, Indenture Trustee
     and the Securityholders, maintain accurate records pertaining to each
     Contract to enable it to comply with the terms and conditions of this
     Agreement, maintain a current inventory thereof, conduct annual physical
     inspections of Contract Files held by it under this Agreement and certify
     to the Trust and the Indenture Trustee annually that it continues to
     maintain possession of such Contract Files;

         (ii)  implement policies and procedures, in writing and signed by a
     Servicing Officer, with respect to persons authorized to have access to the
     Contract Files on the Servicer's premises and the receipting for Contract
     Files taken from their storage area by an employee of the Servicer for
     purposes of servicing or any other purposes; and

         (iii) attend to all details in connection with maintaining custody of
     the Contract Files on behalf of the Trust, the Indenture Trustee and the
     Securityholders.

     (d) In performing its duties under this Section, the Servicer agrees to act
with reasonable care, using that degree of skill and care that it exercises with
respect to similar contracts owned and/or serviced by it.  The Servicer shall
promptly report to the Trust and the Indenture Trustee any failure by it to hold
the Contract Files as herein provided and shall promptly take appropriate action
to remedy any such failure.  In acting as custodian of the Contract Files, the
Servicer agrees further not to assert any beneficial ownership interests in the
Contracts or the Contract Files.  The Servicer agrees to indemnify the Trust,
Owner Trustee, the Indenture Trustee and the Securityholders for any and all
liabilities, obligations, losses, damages, payments, costs or expenses of any
kind whatsoever which may be imposed on, incurred or

                                      4-1
<PAGE>

asserted against them as the result of any act or omission by the Servicer
relating to the maintenance and custody of the Contract Files; provided,
                                                               --------
however, that the Servicer will not be liable for any portion of any such amount
-------
resulting from the negligence or willful misconduct of any indemnified party.

     SECTION 4.02.  Filings.
                    -------

     On or prior to the Closing Date, the Seller shall cause the UCC-1 financing
statement referred to in Section 2.02(e)(ii) to be filed.  The Servicer on
behalf of the Trust shall cause to be filed all necessary continuation
statements of such UCC-1 financing statement.  From time to time the Servicer
shall take and cause to be taken such actions and execute such documents as are
necessary to perfect and protect the Securityholders' interests in the Contracts
and their proceeds and the Products against all other persons, including,
without limitation, the filing of financing statements, amendments thereto and
continuation statements, the execution of transfer instruments and the making of
notations on or taking possession of all records or documents of title.  The
Servicer will maintain the first priority perfected security interest of the
Trust in each Product so long as the related Contract is property of the Trust.

     SECTION 4.03.  Name Change or Relocation.
                    -------------------------

     (a) During the term of this Agreement, the Seller shall not change its
name, identity or structure or relocate its chief executive office without first
giving notice thereof to the Owner Trustee, the Indenture Trustee and the
Servicer.  In addition, following any such change in the name, identity,
structure or location of the chief executive office of the Seller, the Seller
shall given written notice of any such change to Standard & Poor's and Moody's.

     (b) If any change in the Seller's name, identity or structure or the
relocation of its chief executive office would make any financing or
continuation statement or notice of lien filed under this Agreement seriously
misleading within the meaning of applicable provisions of the UCC or any title
statute or would cause the security interest evidenced by any such financing or
continuation statement or notice of lien to become unperfected (whether
immediately or with lapse of time), the Seller, no later than five days after
the effective date of such change, shall file, or cause to be filed, such
amendments or financing statements as may be required to preserve, perfect and
protect the Securityholders' interests in the Contracts, including the
Collateral Security and all proceeds thereof.

     SECTION 4.04.  Chief Executive Office.
                    ----------------------

     During the term of this Agreement, the Seller will maintain its chief
executive office in one of the States of the United States, except Tennessee.

     SECTION 4.05.  Costs and Expenses.
                    ------------------

     The Servicer agrees to pay all reasonable costs and disbursements in
connection with the perfection and the maintenance of perfection, as against all
third parties, of the Securityholders' right, title and interest in and to the
Contracts, including the Collateral Security and all proceeds thereof.
<PAGE>

                                   ARTICLE V

                            SERVICING OF CONTRACTS

     SECTION 5.01.  Responsibility for Contract Administration.
                    ------------------------------------------

     The Servicer will have the sole obligation to manage, administer, service
and make collections on the Contracts and perform or cause to be performed all
contractual and customary undertakings of the holder of the Contracts to the
Obligor. The Servicer may delegate duties under this Agreement to any of the
Servicer's Affiliates.  In addition, the Servicer may at any time perform the
specific duty of repossessing Products through subcontractors who are in the
business of servicing consumer receivables.  The Servicer may also perform other
specific duties through subcontractors; provided that the Servicer gives notice
to each of the Trust, the Indenture Trustee, Standard & Poor's and Moody's of
the use of any such subcontractors; and provided further that no such delegation
of duties by the Servicer shall relieve the Servicer of its responsibility with
respect thereto.   The Owner Trustee, on behalf of the Trust and at the request
of a Servicing Officer, shall furnish the Servicer with any powers of attorney
or other documents necessary or appropriate to enable the Servicer to carry out
its servicing and administrative duties hereunder.  Conseco Finance Corp. is
hereby appointed the Servicer until such time as any Service Transfer shall be
effected under Article VII.

     SECTION 5.02.  Standard of Care.
                    ----------------

     In managing, administering, servicing and making collections on the
Contracts pursuant to this Agreement, the Servicer will exercise that degree of
skill and care consistent with the highest degree of skill and care that the
Servicer exercises with respect to similar contracts serviced by the Servicer;
provided, however, that notwithstanding the foregoing, the Servicer shall not
--------  -------
release or waive the right to collect the unpaid balance on any Contract.

     SECTION 5.03.  Records.
                    -------

     The Servicer shall, during the period it is servicer hereunder, maintain
such books of account and other records as will enable the Trust and the
Indenture Trustee to determine the status of each Contract.

     SECTION 5.04.  Inspection; Computer Tape.
                    -------------------------

     (a) At all times during the term hereof, the Servicer shall afford the
Trust and Indenture Trustee and their authorized agents reasonable access during
normal business hours to the Servicer's records relating to the Contracts and
will cause its personnel to assist in any examination of such records by the
Trust and Indenture Trustee or their authorized agents.  The examination
referred to in this Section will be conducted in a manner which does not
unreasonably interfere with the Servicer's normal operations or customer or
employee relations. Without otherwise limiting the scope of the examination the
Trust and Indenture Trustee may make, the Trust and Indenture Trustee may, using
generally accepted audit procedures, verify the status of each Contract and
review the Electronic Ledger and records relating thereto for

                                      5-1
<PAGE>

conformity to Monthly Reports prepared pursuant to Section 5.14 and compliance
with the standards represented to exist as to each Contract in this Agreement.

     The Servicer shall provide to any Securityholder such access to the records
relating to the Contracts only in such cases where the Servicer is required by
applicable statutes or regulations, whether applicable to the Servicer or to
such Securityholder, to permit Securityholder to review such documentation.  In
each case, such access shall be afforded without charge but only upon reasonable
request and during normal business hours.  Nothing in this Section shall
derogate from 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 as provided in this Section as a result of such
obligation shall not constitute a breach of this Section.  Any Securityholder,
by its acceptance of a Certificate or Note (or by acquisition of its beneficial
interest therein), as applicable, shall be deemed to have agreed to keep
confidential and not to use for its own benefit any information obtained by it
pursuant to this Section, except as may be required by applicable law.

     (b) At all times during the term hereof, the Servicer shall keep available
a copy of the List of Contracts at its principal executive office for inspection
by the Trust and the Indenture Trustee.

     (c) On or before the ninth Business Day of each month, the Servicer will
provide to the Indenture Trustee a Computer Tape setting forth a list of all the
outstanding Contracts and the outstanding principal balance of each such
Contract as of the end of the next preceding Monthly Period.

     SECTION 5.05.  Collections.
                    -----------

     (a) The Servicer shall pay into the Collection Account: (i) as promptly as
practicable (not later than the next Business Day) following receipt thereof all
payments from Obligors and Net Liquidation Proceeds (other than late payment
penalty fees, extension fees and assumption fees, which shall be retained by the
Servicer as additional compensation for servicing the Contracts, and any
payments that were due prior to the Cutoff Date, which shall be remitted to the
Originator); and (ii) on the Business Day immediately prior to each Distribution
Date, all Servicer Advances required to be made with respect to such
Distribution Date pursuant to Section 5.13.

     (b) If the Servicer so directs, the institution maintaining the Collection
Account shall, in the name of the Indenture Trustee in its capacity as such,
invest the amounts in the Collection Account in Eligible Investments that mature
not later than one Business Day prior to the next succeeding Distribution Date.
Once such funds are invested, such institution shall not change the investment
of such funds.  All income and gain from such investments shall be added to the
Collection Account and distributed on such Distribution Date pursuant to Section
6.04(a).  The Trustee and the Indenture Trustee shall in no way be liable for
losses on amounts invested in accordance with the provisions hereof.  The
Servicer shall deposit in the Collection Account an amount equal to any net loss
on such investments immediately as realized.  Funds in the Collection Account
not so invested must be insured to the extent permitted by law by the Federal

                                      5-2
<PAGE>

Deposit Insurance Corporation.

     SECTION 5.06.  Enforcement.
                    -----------

     (a) The Servicer shall, consistent with customary servicing procedures and
the terms of this Agreement, act with respect to the Contracts in such manner as
will maximize the receipt of principal and interest on such Contracts and
Liquidation Proceeds with respect to Liquidated Contracts.

     (b) The Servicer may sue to enforce or collect upon Contracts, in its own
name, if possible, or as agent for the Trust.  If the Servicer elects to
commence a legal proceeding to enforce a Contract, the act of commencement shall
be deemed to be an automatic assignment of the Contract to the Servicer for
purposes of collection only.  If, however, in any enforcement suit or legal
proceeding it is held that the Servicer may not enforce a Contract on the ground
that it is not a real party in interest or a holder entitled to enforce the
Contract, the Owner Trustee on behalf of the Trust shall, at the Servicer's
expense, take such steps as the Servicer deems necessary to enforce the
Contract, including bringing suit in its name or the names of the
Securityholders.

     (c) The Servicer shall exercise any rights of recourse against third
persons that exist with respect to any Contract in accordance with the
Servicer's usual practice.  Without limitation of the foregoing, in exercising
recourse rights, the Servicer is authorized on behalf of the Trust to reassign
the Contract or to resell the related Product to the person against whom
recourse exists at the price set forth in the document creating the recourse.

     (d) So long as the Originator is the Servicer, the Servicer may grant to
the Obligor on any Contract any rebate, refund or adjustment out of the
Collection Account that the Servicer in good faith believes is required because
of prepayment in full of the Contract.  The Servicer will not permit any
rescission or cancellation of any Contract.

     (e) So long as Conseco Finance Corp. is the Servicer, the Servicer may,
consistent with its customary servicing procedures and consistent with Section
5.02, grant to the Obligor on any Contract an extension of payments due under
such Contract, provided that Obligors may not be solicited for extensions and no
more than one extension of payments under a Contract may be granted in any
twelve-month period and, provided further, that no Contract may be granted an
extension more than a total of three times during the life of such Contract.
The Servicer may not permit the extension of any payment beyond the last
scheduled maturity date of any Contract as of the applicable Cutoff Date.

     (f) The Servicer shall enforce any due-on-sale clause in a Contract if such
enforcement is called for under its then current servicing policies for
obligations similar to the Contracts, provided that such enforcement is
permitted by applicable law and will not adversely affect any applicable
insurance policy. If an assumption of a Contract is permitted by the Servicer,
upon conveyance of the related Product the Servicer shall use its best efforts
to obtain an assumption agreement in connection therewith.

                                      5-3
<PAGE>

     (g) Any provision of this Agreement to the contrary notwithstanding, the
Servicer shall not agree to the modification or waiver of any provision of a
Contract, if such modification or waiver, when aggregated with all previous
modifications or waivers of the provisions of Contracts, would cause any Notes
to be treated as having been exchanged for other Notes in a taxable exchange
under Section 1001 of the Code or any proposed, temporary or final Treasury
Regulations issued thereunder.

     SECTION 5.07.  Satisfaction of Contracts.
                    -------------------------

     Upon payment in full on any Contract, the Servicer will notify the Trust,
the Indenture Trustee, and the Originator (if the Originator is not the
Servicer) on the next succeeding Distribution Date by certification of a
Servicing Officer (which certification shall include a statement to the effect
that all amounts received in connection with such payments which are required to
be deposited in the Collection Account pursuant to Section 5.05 have been so
deposited).  The Servicer is authorized to execute an instrument in satisfaction
of such Contract and to do such other acts and execute such other documents as
the Servicer deems necessary to discharge the Obligor thereunder and eliminate
the lien on the related Product.  The Servicer shall determine when a Contract
has been paid in full; to the extent that insufficient payments are received on
a Contract credited by the Servicer as prepaid or paid in full and satisfied,
the shortfall shall be paid by the Servicer out of its own funds.

     SECTION 5.08.  Costs and Expenses.
                    ------------------

     All costs and expenses incurred by the Servicer in carrying out its duties
hereunder, including all fees and expenses incurred in connection with the
enforcement of Contracts (including enforcement of defaulted Contracts and
repossessions of Products securing such Contracts) shall be paid by the Servicer
and the Servicer shall not be entitled to reimbursement hereunder, except that
the Servicer shall be reimbursed out of the Liquidation Proceeds of a Liquidated
Contract for Liquidation Expenses incurred by it.  The Servicer shall not incur
such Liquidation Expenses unless it determines in its good faith business
judgment that incurring such expenses will increase the Net Liquidation Proceeds
on the related Contract.

     SECTION 5.09.  Maintenance of Insurance.
                    ------------------------

     (a) Except as otherwise provided in subsection (b) of this Section 5.09,
the Servicer shall cause to be maintained one or more physical damage insurance
policies; in each case, issued by a company authorized to issue such policies in
the state in which the related Product is located and in an amount which is not
less than the maximum insurable value of such Product or the principal balance
due from the Obligor on the related Contract, whichever is less; provided,
                                                                 --------
however, that the amount of coverage provided by each Insurance Policy shall be
-------
sufficient to avoid the application of any co-insurance clause contained
therein; and provided, further, that such Insurance Policies may provide for
customary deductible amounts.  Each Insurance Policy caused to be maintained by
the Servicer shall contain a standard loss payee clause in favor of the Servicer
and its successors and assigns.  If any Obligor is in default in the payment of
premiums on its Insurance Policy or Policies, the Servicer shall pay such
premiums out of its own funds and may separately add such premium to the
Obligor's obligation as provided by the Contract, but

                                      5-4
<PAGE>

shall not add such premium to the remaining principal balance of the Contract.

     (b) The Servicer may, in lieu of causing individual Insurance Policies to
be maintained pursuant to subsection (a) of this Section 5.09, maintain one or
more blanket insurance policies covering any losses caused by damage to such
Product that would have been covered by an individual Insurance Policy.  Any
such blanket policy shall be substantially in the form and in the amount carried
by the Servicer as of the date of this Agreement.  The Servicer shall pay the
premium for such policy on the basis described therein and shall deposit into
the Collection Account from its own funds any deductible amount with respect to
claims under such blanket insurance policy relating to the Contracts.  The
Servicer shall not, however, be required to deposit any deductible amount with
respect to claims under individual Insurance Policies maintained pursuant to
subsection (a) of this Section.  If the insurer under such blanket insurance
policy shall cease to be acceptable to the Servicer, the Servicer shall exercise
its best reasonable efforts to obtain from another insurer a replacement policy
comparable to such policy.

     (c) With respect to each Product that has been repossessed in connection
with a defaulted Contract, the Servicer shall either (i) maintain one or more
Insurance Policies thereon or (ii) self-insure such Products and deposit into
the Collection Account from its own funds any losses caused by damage to such
Product that would have been covered by an Insurance Policy.

     (d) The Servicer shall keep in force throughout the term of this Agreement
(i) a policy or policies of insurance covering errors and omissions for failure
to maintain insurance as required by this Agreement and (ii) a fidelity bond.
Such policy or policies and such fidelity bond shall be in such form and amount
as is generally customary among Persons which service a portfolio of retail
installment sales agreements having an aggregate principal amount of
$100,000,000 or more and which are generally regarded as servicers acceptable to
institutional investors.

     SECTION 5.10.  Repossession.
                    ------------

     Notwithstanding the standard of care specified in Section 5.02, the
Servicer shall commence procedures for the repossession of any Product or take
such other steps that in the Servicer's reasonable judgment will maximize the
receipt of principal and interest or Net Liquidation Proceeds with respect to
the Contract secured by such Product (which may include retitling) subject to
the requirements of the applicable state and federal law, no later than five
Business Days after the time when such Contract becomes a Defaulted Contract.
In connection with such repossession or other conversion, the Servicer shall
follow such practices and procedures as it shall deem necessary or advisable and
as shall be consistent with Section 5.02. In the event that title to any Product
is acquired in foreclosure or by deed in lieu of foreclosure, the deed or
certificate of sale shall be issued to the Indenture Trustee, as trustee, or, at
its election, to its nominee on behalf of the Indenture Trustee, as trustee.

                                      5-5
<PAGE>

     SECTION 5.11.  Commingling of Funds.
                    --------------------

     So long as the Originator is Servicer, any collections in respect of
Contracts collected by the Originator shall, prior to the deposit thereof in the
Collection Account, be held in bank accounts entitled substantially as follows:
"[name of depository], as agent for U.S. Bank Trust National Association and
other trustees and Conseco Finance Corp., as their interests may appear."

     SECTION 5.12.  Retitling; Security Interests.
                    -----------------------------

     (a) 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 Contract in the related Product.  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 the Product or for any other reason.

     (b) If, at any time, a Service Transfer has occurred and the Originator is
no longer the Servicer and the new Servicer is unable to foreclose upon a
Product because the title document for such Product does not show such Servicer
or the Indenture Trustee as the holder of the first priority security interest
in the Product, such Servicer shall take all necessary steps to apply for a
replacement title document showing it or the Indenture Trustee as the secured
party.  In order to facilitate the Servicer's actions, as described in
subsection (a) of this section, the Originator will provide the Servicer and/or
the Indenture Trustee with any necessary power of attorney permitting it to
retitle the Product.  If the Servicer is still unable to retitle the Product,
the Originator will take all actions necessary to act with the Servicer to
foreclose upon the Product following a default on the related Contract,
including, as appropriate, the filing of any UCC-1 or UCC-2 financing statements
necessary to perfect the security interest in any Product.

     SECTION 5.13.  Servicer Advances.
                    -----------------

     Not later than the Business Day immediately preceding each Distribution
Date, the Servicer shall advance to the Trust (each such advance, a "Servicer
Advance") all Delinquent Payments for the immediately preceding Monthly Period
by depositing the aggregate amount of such Delinquent Payments in the Collection
Account, provided, however, that the Servicer shall be obligated to advance
Delinquent Payments only to the extent that the Servicer, in its sole
discretion, expects to be able to recover such advances from subsequent
collections, including Net Liquidation Proceeds.

     SECTION 5.14.  Monthly Reports; Certificate of Servicing Officer.
                    -------------------------------------------------

     (a) No later than 1:00 p.m. (Minnesota time) on each Determination Date,
the Servicer shall deliver to the Trust, the Indenture Trustee, the Paying
Agent, the Originator (if the Originator is not the Servicer), Standard & Poor's
and Moody's a "Monthly Report," substantially in the form of Exhibit C hereto.
               --------------

     (b) Each Monthly Report pursuant to Section 5.14(a) shall be accompanied by
a

                                      5-6
<PAGE>

certificate of a Servicing Officer substantially in the form of Exhibit D,
certifying the accuracy of the Monthly Report and that no Event of Termination
or event that with notice or lapse of time or both would become an Event of
Termination has occurred, or if such event has occurred and is continuing,
specifying the event and its status.

     (c) The Originator and (if different from the Originator) the Servicer
shall, on request of the Trust, the Indenture Trustee, Standard & Poor's,
Moody's or a Securityholder, furnish the Trust, the Indenture Trustee, Standard
& Poor's, Moody's or a Securityholder such underlying data as may be reasonably
requested.

     SECTION 5.15.  Annual Report of Accountants.
                    ----------------------------

     On or before March 31 of each year, commencing March 31, 2001, the Servicer
at its expense shall cause a firm of independent public accountants which is a
member of the American Institute of Certified Public Accountants to make
available to the Trust, the Indenture Trustee, Standard & Poor's and Moody's a
report stating that such firm has examined selected documents and records
relating to the servicing of retail installment sales contracts, including the
contracts covered by this Agreement, in accordance with the Mortgage Bankers
Association of America's Uniform Single Attestation Program for Mortgage
Bankers, or any successor uniform program, and that, on the basis of such
examination, such servicing has been conducted in compliance with the minimum
servicing standards identified therein, except for such significant exceptions
or errors in records that, in the opinion of such firm, generally accepted
auditing standards requires it to report.

     SECTION 5.16.  Certain Duties of the Servicer Under the Trust Agreement.
                    --------------------------------------------------------

     The Servicer shall, and hereby agrees that it will, monitor the Trust's
compliance with all applicable provisions of state and federal securities laws,
notify the Trust and the Administrator of any actions to be taken by the Trust
necessary for compliance with such laws and prepare on behalf of the Trust and
the Administrator all notices, filings or other documents or instruments
required to be filed under such laws.

     SECTION 5.17.  Annual Statement as to Compliance; Notice of Servicer
                    -----------------------------------------------------
Termination Event.
-----------------

     (a) The Servicer shall deliver to the Trust, the Indenture Trustee, and
each of Standard & Poor's and Moody's, on or before March 31 (or 90 days after
the end of the Servicer's fiscal year, if other than December 31) of each year,
beginning on March 31, 2001, an officer's certificate signed by any Responsible
Officer of the Servicer, dated as of December 31 (or other applicable date) of
the immediately preceding year, stating that (i) a review of the activities of
the Servicer during the preceding 12-month period (or such other period as shall
have elapsed from the Closing Date to the date of the first such certificate)
and of its performance under this Agreement has been made under such officer's
supervision, and (ii) to such officer's knowledge, based on such review, the
Servicer has fulfilled all its obligations under this Agreement throughout such
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.

                                      5-7
<PAGE>

     (b) The Originator or the Servicer shall deliver to the Trust, the
Indenture Trustee, the Servicer or the Originator (as applicable) and each
Rating Agency promptly after having obtained knowledge thereof, but in no event
later than 2 Business Days thereafter, written notice in an officer's
certificate of any event which with the giving of notice or lapse of time, or
both, would become an Event of Termination under Section 7.01.

     SECTION 5.18.  Maintenance of Security Interests in Products.
                    ---------------------------------------------

     (a) Consistent with the policies and procedures required by this Agreement,
the Servicer shall take such steps as are necessary to maintain perfection of
the security interest created by each Contract in the related Product on behalf
of the Trust, including but not limited to obtaining the execution by the
Obligors and the recording, registering, filing, re-recording, re-filing, and
re-registering of all security agreements, financing statements and continuation
statements as are necessary to maintain the security interest granted by the
Obligors under the respective Contracts.  The Trust hereby authorizes the
Servicer, and the Servicer agrees, to take any and all steps necessary to re-
perfect such security interest on behalf of the Trust as necessary because of
the relocation of a Product or for any other reason.  In the event that the
assignment of a Contract to the Trust is insufficient, without a notation on the
related Product's certificate of title, or without fulfilling any additional
administrative requirements under the laws of the state in which the Product is
located, to perfect a security interest in the related Product in favor of the
Trust, the Servicer hereby agrees that the Servicer's designation as the secured
party on the certificate of title is in its capacity as agent of the Trust.

     (b) Upon the occurrence of an Event of Termination, the Trust and the
Servicer shall take or cause to be taken such action as may, in the opinion of
counsel to the Trust, be necessary to perfect or re-perfect the security
interests in the Products securing the Contracts in the name of the Trust by
amending the title documents of such Products or by such other reasonable means
as may, in the opinion of counsel to the Trust, be necessary or prudent.  The
Servicer hereby agrees to pay all expenses related to such perfection or re-
perfection and to take all action necessary therefor.

     SECTION 5.19.  Covenants, Representations, and Warranties of Servicer.
                    ------------------------------------------------------

     By its execution and delivery of this Agreement, the Servicer makes the
following representations, warranties and covenants on which the Trust relies in
accepting the Contracts and issuing the Notes and the Certificates and on which
the Indenture Trustee relies in authenticating the Notes and the Owner Trustee
relies in authenticating the Certificates.

     (a) Organization and Good Standing.  The Servicer is a corporation duly
         ------------------------------
organized, validly existing and in good standing under the laws of the
jurisdiction of its organization and has the corporate power to own its assets
and to transact the business in which it is currently engaged. The Servicer is
duly qualified to do business as a foreign corporation and is in good standing
in each jurisdiction in which the character of the business transacted by it or
properties owned or leased by it requires such qualification and in which the
failure so to qualify would have a material adverse effect on the business,
properties, assets, or condition (financial or other) of the Servicer.

                                      5-8
<PAGE>

     (b) Authorization; Binding Obligations.  The Servicer has the power and
         ----------------------------------
authority to make, execute, deliver and perform this Agreement and its Related
Documents and all of the transactions contemplated under this Agreement and
thereunder and has taken all necessary corporate action to authorize the
execution, delivery and performance of this Agreement and its Related Documents.
When executed and delivered, this Agreement and its Related Documents will
constitute the legal, valid and binding obligations of the Servicer enforceable
in accordance with their terms, except as enforcement of such terms may be
limited by bankruptcy, insolvency or similar laws affecting the enforcement of
creditors' rights generally and by the availability of equitable remedies.

     (c) No Consent Required.  The Servicer is not required to obtain the
         -------------------
consent of any other party or any consent, license, approval or authorization
from, or registration or declaration with, any governmental authority, bureau or
agency in connection with the execution, delivery, performance, validity or
enforceability of this Agreement, except for such consents, licenses, approvals
and authorizations as have been obtained.

     (d) No Violations.  The execution, delivery and performance by the Servicer
         -------------
of this Agreement and its Related Documents and the fulfillment of their terms
will not violate any provision of any existing law or regulation or any order or
decree of any court or the related Certificate of Incorporation or Bylaws of the
Servicer, or constitute a material breach of any mortgage, indenture, contract
or other agreement to which the Servicer is a party or by which the Servicer may
be bound.

     (e) Litigation.  No litigation or administrative proceeding of or before
         ----------
any court, tribunal or governmental body is currently pending, or to the
knowledge of the Servicer threatened, against the Servicer or any of its
properties or with respect to this Agreement, the Related Documents, or the
Securities which, if adversely determined, would in the opinion of the Servicer
have a material adverse effect on the transactions contemplated by this
Agreement and Related Documents.

     (f) Chief Executive Office.  The chief executive office of the Servicer is
         ----------------------
at 1100 Landmark Towers, 345 St. Peter Street, St. Paul, Minnesota 55102-1639.

     (g) No Default.  The Servicer is not in default with respect to any order
         ----------
or decree of any court or any order, regulation or demand of any federal, state,
municipal or governmental agency, which default would materially and adversely
affect its condition (financial or other) or operations or its properties or the
consequences of which would materially and adversely affect its performance
hereunder and under its other Related Documents.  The Servicer is not in default
under any agreement involving financial obligations or on any outstanding
obligation which would materially adversely impact its financial condition or
operations or legal documents associated with the transaction contemplated by
this Agreement or the other Related Documents.

     (h) Liens in Force.  The Product securing each Contract shall not be
         --------------
released in whole or in part from the security interest granted by the Contract,
except upon payment in full of the Contract or as otherwise contemplated herein.

                                      5-9
<PAGE>

     (i) No Impairment.  The Servicer shall do nothing to impair the rights of
         -------------
the Trust, the Indenture Trustee or the Securityholders in the Contracts, the
Insurance Policies or the other Trust Property.

     (j) No Amendments.  The Servicer shall not extend or otherwise amend the
         -------------
terms of any Contract, except in accordance with Section 5.06.

     SECTION 5.20.  Purchase of Contracts Upon Breach of Covenant.
                    ---------------------------------------------

     Upon discovery by any of the Servicer, the Trust or the Indenture Trustee
of a breach of any of the covenants set forth in Section 5.06(d), 5.06(e), 5.18
or 5.19, the party discovering such breach shall give prompt written notice to
the others; provided, however, that the failure to give any such notice shall
            --------  -------
not affect any obligation of the Servicer.  Not later than the last day of the
Monthly Period that is 90 days after its discovery or receipt of notice of any
breach of any such covenant which materially and adversely affects the interests
of the Securityholders or the Trust in any Contract (including any Liquidated
Contract), the Servicer shall, unless it shall have cured such breach in all
material respects, purchase from the Trust the Contract affected by such breach
and pay the related Repurchase Price.  It is understood and agreed that the
obligation of the Servicer to purchase any Contract (including any Liquidated
Contract) with respect to which such a breach has occurred and is continuing
shall, if such obligation is fulfilled, constitute the sole remedy against the
Servicer for such breach available to the Securityholders, the Trust, or the
Indenture Trustee on behalf of the Noteholders; provided, however, that the
                                                --------  -------
Servicer shall indemnify the Owner Trustee, the Trust, the Indenture Trustee,
and the Securityholders against all costs, expenses, losses, damages, claims and
liabilities, including reasonable fees and expenses of counsel, which may be
asserted against or incurred by any of them as a result of third party claims
arising out of the events or facts giving rise to such breach.

                                     5-10
<PAGE>

                                  ARTICLE VI

                        DISTRIBUTIONS; TRUST ACCOUNTS;
                         STATEMENTS TO SECURITYHOLDERS

     SECTION 6.01.  Trust Accounts.
                    --------------

     (a)  The Servicer shall establish the Collection Account in the name of the
Indenture Trustee for the benefit of the Securityholders.  The Collection
Account shall be an Eligible Account and initially shall be a segregated trust
account established with the Indenture Trustee and maintained with the Indenture
Trustee.

     (b)  The Servicer shall establish the Note Distribution Account in the name
of the Indenture Trustee for the benefit of the Noteholders.  The Note
Distribution Account shall be an Eligible Account and initially shall be a
segregated trust account established with the Indenture Trustee and maintained
with the Indenture Trustee.

     (c)  The Servicer shall establish the Certificate Distribution Account in
the name of the Owner Trustee for the benefit of the Certificateholders.  The
Certificate Distribution Account shall be an Eligible Account and initially
shall be a segregated trust account established with the Indenture Trustee and
maintained with the Indenture Trustee, so long as the Indenture Trustee is
acting as Paying Agent under Section 3.9 of the Trust Agreement.

     (d)  The Servicer shall establish the Pre-Funding Account on behalf of the
Trust, and shall deposit therein the Pre-Funded Amount pursuant to Section
2.02(j).  The Pre-Funding Account shall be an Eligible Account and shall be a
segregated trust account established with the Indenture Trustee and maintained
with the Indenture Trustee.

     (e)  The Servicer shall establish the Reserve Account in the name of the
Indenture Trustee for the benefit of the Noteholders, and shall deposit therein
$7,000,000 pursuant to Section 6.08.  The Reserve Account shall be an Eligible
Account and shall be a segregated trust account established with the Indenture
Trustee and maintained with the Indenture Trustee.

     (f)  The Servicer shall establish the Class B Reserve Account in the name
of the Indenture Trustee for the benefit of the Noteholders, and shall deposit
therein $1,400,00 pursuant to Section 6.09. The Class B Reserve Account shall be
an Eligible Account and shall be a segregated trust account established with the
Indenture Trustee and maintained with the Indenture Trustee.

     (g)  All amounts held in the Collection Account, the Pre-Funding Account,
the Reserve Account and the Class B Reserve Account (but not the Note
Distribution Account or the Certificate Distribution Account) shall, to the
extent permitted by applicable laws, rules and regulations, be invested, as
directed by the Servicer, in Eligible Investments that mature not later than one
Business Day prior to the Distribution Date for the Monthly Period to which such
amounts relate.  Any such written direction shall certify that any such
investment is authorized by this Section 6.01(d).  Such investments in Eligible
Investments shall be made in the name of the

                                      6-1
<PAGE>

Indenture Trustee on behalf of the Trust, and such investments shall not be sold
or disposed of prior to their maturity.  Any investment of funds in the
Collection Account or the Pre-Funding Account shall be made in Eligible
Investments held by a financial institution with respect to which (a) such
institution has noted the Indenture Trustee's interest therein by book entry or
otherwise and (b) a confirmation of the Indenture Trustee's interest has been
sent to the Indenture Trustee by such institution, provided that such Eligible
Investments are (i) specific certificated securities (as such term is used in MN
UCC (S) 336.8-313(1)(d)(i)), and (ii) either (A) in the possession of such
institution or (B) in the possession of a clearing corporation (as such term is
used in MN UCC (S) 336.8-313(1)(g)) in New York or Minnesota, registered in the
name of such clearing corporation, not endorsed for collection or surrender or
any other purpose not involving transfer, not containing any evidence of a right
or interest inconsistent with the Indenture Trustee's security interest therein,
and held by such clearing corporation in an account of such institution.
Subject to the other provisions hereof, the Indenture Trustee shall have sole
control over each such investment and the income thereon, and any certificate or
other instrument evidencing any such investment, if any, shall be delivered
directly to the Indenture Trustee or its agent, together with each document of
transfer, if any, necessary to transfer title to such investment to the
Indenture Trustee in a manner which complies with this Section 6.01.  All
interest, dividends, gains upon sale and other income from, or earnings on,
investments of funds in the Collection Account, the Pre-Funding Account, the
Reserve Account and the Class B Reserve Account shall be deposited in the
Collection Account and distributed on the next Distribution Date pursuant to
Section 6.06.  The Servicer shall deposit in the applicable Trust Account an
amount equal to any net loss on such investments immediately as realized.

     SECTION 6.02.  Collection Account Deposits.
                    ---------------------------

     (a)  Collections. The Servicer shall remit directly to the Collection
          -----------
Account (no later than the next Business Day as specified in Section 5.05) all
payments by or on behalf of the Obligors on the Contracts and all Liquidation
Proceeds received by the Servicer.

     (b)  Servicer Advances. The Servicer shall deposit in the Collection
          -----------------
Account immediately prior to each Distribution Date all Servicer Advances
required to be made pursuant to Section 5.13.

     (c)  Repurchased Contracts. The Originator shall deposit in the Collection
          ---------------------
Account the Repurchase Price for each Contract repurchased by it under Section
3.05. The Servicer shall deposit in the Collection Account the Repurchase Price
for each Contract repurchased by it under Section 5.20.

     SECTION 6.03.  Permitted Withdrawals.
                    ---------------------

     The Indenture Trustee may, from time to time as provided herein, make
withdrawals from the Collection Account of amounts deposited in said account
that are attributable to the Contracts only for the following purposes:

          (a)  to make payments in the amounts and in the manner provided for in
     Section 6.04;

                                      6-2
<PAGE>

          (b)  to pay to the Originator with respect to each Contract or
     property acquired in respect thereof that has been repurchased pursuant to
     Section 3.05, all amounts received thereon and not required to be
     distributed to Noteholders or Certificateholders as of the date on which
     the related Scheduled Principal Balance or Repurchase Price is determined;

          (c)  to reimburse the Servicer out of Liquidation Proceeds for
     Liquidation Expenses incurred by it, to the extent such reimbursement is
     permitted pursuant to Section 5.08;

          (d)  to withdraw any amount deposited in the Collection Account that
     was not required to be deposited therein; or

          (e)  to make any rebates or adjustments deemed necessary by the
     Servicer pursuant to Section 5.06(d).

     Since, in connection with withdrawals pursuant to clauses (b) and (c), the
Originator's or the Servicer's entitlement thereto is limited to collections or
other recoveries on the related Contract, the Servicer shall keep and maintain a
separate accounting, on a Contract by Contract basis, for the purpose of
justifying any withdrawal from the Collection Account pursuant to such clauses.

     SECTION 6.04.  Distributions.
                    -------------

     (a)  On each Distribution Date, the Servicer shall instruct the Indenture
Trustee (based on the information contained in the Monthly Report delivered
pursuant to Section 5.14) to make the following deposits and distributions by
11:00 a.m. (Minnesota time), to the extent of the Amount Available for such
Distribution Date, plus amounts, if any, withdrawn from the Reserve Account and
the Class B Reserve Account, and in the following order of priority:

          (i)   Servicing Fee.  If Conseco Finance Corp. or an Affiliate is not
                -------------
     the Servicer, then to the Servicer, the Servicing Fee for the related
     Monthly Period.

          (ii)  Servicer Advances.  After payment of the amount specified in
                -----------------
     clause (i) above, to reimburse the Servicer for Uncollectible Advances and
     for Servicer Advances made with respect to Delinquent Payments that were
     recovered during the related Monthly Period.

          (iii) Trustee Fee.  After payment of the amount specified in clauses
                -----------
     (i) and (ii) above, to the Owner Trustee any accrued and unpaid fees of the
     Owner Trustee in accordance with the Trust Agreement; to the Indenture
     Trustee, any accrued and unpaid fees (including any fees and expenses of
     the Indenture Trustee acting as custodian, securities intermediary or in
     another similar capacity) of the Indenture Trustee in accordance with the
     Indenture to the extent not paid by the Administrator or the Servicer.

          (iv)  Class A Interest.  After payment of the amounts specified in
                ----------------
     clauses (i)

                                      6-3
<PAGE>

     through (iii) above, to the Note Distribution Account, the sum of the Class
     A Interest Amount and any Unpaid Class A Interest Shortfall.

          (v)    Class M-1 Interest.  After payment of the amounts specified in
                 ------------------
     clauses (i) through (iv) above, to the Note Distribution Account, the Class
     M-1 Interest Amount and any Unpaid Class M-1 Interest Shortfall.

          (vi)   Class M-2 Interest.  After payment of the amounts specified in
                 ------------------
     clauses (i) through (v) above, to the Note Distribution Account, the Class
     M-2 Interest Amount and any Unpaid Class M-2 Interest Shortfall.

          (vii)  Class B Interest.  After payment of the amounts specified in
                 ----------------
     clauses (i) through (vi) above, to the Note Distribution Account, the Class
     B Interest Amount and any Unpaid Class B Interest Shortfall.

          (viii) Note Principal.  After payment of the amounts specified in
                 --------------
     clauses (i) through (vii) above, to the Note Distribution Account, the
     lesser of (1) the Formula Principal Distribution Amount and any Unpaid
     Formula Principal Shortfall, and (2)  the Total Note Principal Distribution
     Amount.

          (ix)   Reserve Account.  After payment of the amounts specified in
                 ---------------
     clauses (i) through (viii) above, to the Reserve Account, the amount
     required to reinstate the amount on deposit in the Reserve Account up to
     the Specified Reserve Balance.

          (x)    Class B Reserve Account. After payment of the amounts specified
                 -----------------------
     in clauses (i) through (ix) above, to the Class B Reserve Account, the
     amount required to reinstate the amount on deposit in the Class B Reserve
     Account up to the Class B Specified Reserve Balance.

          (xi)   Servicing Fee.  After payment of the amounts specified in
                 -------------
     clauses (i) through (x) above, if Conseco Finance Corp. or an Affiliate of
     Conseco Finance Corp. is the Servicer, to pay the Servicer the Monthly
     Servicing Fee.

          (xii)  Additional Principal Distribution Amount.  After payment of the
                 ----------------------------------------
     amounts specified in clauses (i) through (xi) above, to the Note
     Distribution Account, the Additional Principal Distribution Amount.

          (xiii) Class C Certificate Distribution Amount.  After payment of the
                 ---------------------------------------
     amounts specified in clauses (i) through (xii) above, to the Certificate
     Distribution Account, the Class C Certificate Distribution Amount.

     SECTION 6.05.  Statements to Securityholders.
                    -----------------------------

     (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

                                      6-4
<PAGE>

Agency) based on information in the Monthly Report delivered on the related
Determination Date pursuant to Section 5.14, setting forth the following
information:

          (i)    the amount of such distribution to Holders of each Class of
     Notes and the Certificates allocable to interest, separately identifying
     any Unpaid Class A-1 Interest Shortfall, Unpaid Class A-2 Interest
     Shortfall, Unpaid Class A-3 Interest Shortfall, Unpaid Class M-1 Interest
     Shortfall, Unpaid Class M-2 Interest Shortfall and Unpaid Class B Interest
     Shortfall included in such distribution and any remaining Unpaid Class A-1
     Interest Shortfall, Unpaid Class A-2 Interest Shortfall, Unpaid Class A-3
     Interest Shortfall, Unpaid Class M-1 Interest Shortfall, Unpaid Class M-2
     Interest Shortfall and Unpaid Class B Interest Shortfall after giving
     effect to such distribution;

          (ii)   the Class A-1 Interest Shortfall, the Class A-2 Interest
     Shortfall, the Class A-3 Interest Shortfall, the Class M-1 Interest
     Shortfall, the Class M-2 Interest Shortfall and the Class B Interest
     Shortfall, if any, for such Distribution Date;

          (iii)  the amount of such distribution to Holders of each Class of
     Notes and the Certificates allocable to principal, separately identifying
     the Formula Principal Distribution Amount and any Additional Principal
     Distribution Amount;

          (iv)   the Class A-1 Principal Balance, the Class A-2 Principal
     Balance, the Class A-3 Principal Balance, the Class M-1 Principal Balance,
     the Class M-2 Principal Balance and the Class B Principal Balance after
     giving effect to the distribution of principal on such Distribution Date;

          (v)    the amount of the Monthly Servicing Fee, if any, paid to the
     Company with respect to the related Monthly Period;

          (vi)   the Pool Scheduled Principal Balance for such Distribution
     Date;

          (vii)  the number and aggregate principal balances of Contracts
     delinquent (a) 30-59 days, (b) 60-89 days and (c) 90 or more days;

          (viii) the number and aggregate Scheduled Principal Balance of
     Contracts that became Defaulted Contracts during the related Monthly
     Period;

          (ix)   the number and aggregate Scheduled Principal Balance of
     Defaulted Contracts as of the last day of the related Monthly Period;

          (x)    the number of Products repossessed and remaining in inventory;

          (xi)   the number and aggregate Scheduled Principal Balance of
     Contracts that became Liquidated Contracts during the related Monthly
     Period and the related Net Liquidation Losses;

          (xii)  the aggregate amount of Servicer Advances made by the Servicer
     with

                                      6-5
<PAGE>

     respect to such Distribution Date, and the aggregate amount paid to the
     Servicer as reimbursement of Servicer Advances made on prior Distribution
     Dates;

          (xiii) the amount, if any, deposited in the Reserve Account pursuant
     to Section 6.04(a)(ix); and

          (xiv)  the amount, if any, deposited in the Class B Reserve Account
     pursuant to Section 6.04(a)(x).

     In the case of information furnished pursuant to clauses (i) through (v)
above, the amounts shall be expressed as a dollar amount per $1,000 denomination
of Note.

     (b)  The Owner Trustee and the Indenture Trustee shall inform any of the
Noteholders, Certificateholders or the Underwriters inquiring by telephone of
the information contained in the most recent Monthly Report.

     (c)  Certificateholders may obtain copies of the statements delivered by
the Owner Trustee pursuant to subsection (a) above upon written request to the
Owner Trustee at the Corporate Trust Office (together with a certification that
such Person is a Certificateholder and payment of any expenses associated with
the distribution thereof). Noteholders may obtain copies of the statements
delivered by the Indenture Trustee pursuant to subsection (a) above upon written
request to the Indenture Trustee at its Corporate Trust Office (together with a
certification that such Person is a Noteholder and payment of any expenses
associated with the distribution thereof).

     SECTION 6.06.  Pre-Funding Account.
                    -------------------

     (a)  Amounts on deposit in the Pre-Funding Account shall be withdrawn by
the Indenture Trustee on any Subsequent Transfer Date an amount equal to 100% of
the Cut-off Date Principal Balance of each Subsequent Contract transferred and
assigned to the Indenture Trustee on such Subsequent Transfer Date and pay such
amount to or upon the order of the Originator upon satisfaction of the
conditions set forth in Section 2.03(b) with respect to such transfer and
assignment. On the Post-Funding Payment date, any funds remaining in the Pre-
Funding Account (other than funds consisting of investment earnings) shall be
deposited in the Collection Account and added to the Amount Available.

     (b)  The Owner Trustee on behalf of the Trust shall be the legal owner of
the Pre-Funding Account.  The Seller shall be the beneficial owner of the Pre-
Funding Account, subject to the foregoing power of the Indenture Trustee to
transfer amounts in the Pre-Funding Account to the Collection Account.  All
amounts earned on deposits in the Pre-Funding Account shall be taxable to the
Seller.  The Trustee shall release to the Seller all investment earnings in the
Pre-Funding Account on the Post-Funding Payment Date.

     SECTION 6.07.  [Reserved].
                    ----------

                                      6-6
<PAGE>

     SECTION 6.08.  Reserve Account.
                    ---------------

     (a)  In the event that the Amount Available with respect to any
Determination Date plus any amount withdrawn from the Class B Reserve Account is
less than the Total Required Payment for the related Distribution Date, then on
the date immediately preceding such Distribution Date, the Indenture Trustee, in
accordance with written instructions from the Servicer, shall (i) withdraw
amounts on deposit in the Reserve Account (up to the amount by which the Total
Required Payment for the related Distribution Date exceeds the Amount Available
with respect to such Determination Date plus any amount withdrawn from the Class
B Reserve Account) and (ii) deposit the amounts so withdrawn from the Reserve
Account into the Collection Account.  On each Distribution Date, any Reserve
Account Excess Amount (after giving effect to any withdrawals on the immediately
preceding Distribution Date as described above) shall be distributed to the
Class C Certificateholders.

     (b)  If on any Distribution Date the amount on deposit in the Reserve
Account, together with the Amount Available for such Distribution Date, would be
sufficient to pay the sum of the amounts specified in Sections 6.04(a)(i) -
(vii) for such Distribution Date plus the Note Principal Balance, then on such
Distribution Date the Indenture Trustee, in accordance with written instructions
from the Servicer, shall withdraw such amount from the Reserve Account and shall
apply such amount to pay the amounts specified in Sections 6.04(a)(i) - (vii)
for such Distribution Date plus the Note Principal Balance, and shall distribute
any remaining funds on deposit in the Reserve Account to the Class C
Certificateholders.

     SECTION 6.09   Class B Reserve Account.
                    -----------------------

     On any Distribution Date on which there shall be a Class B Interest
Shortfall, the Servicer shall instruct the Indenture Trustee to withdraw from
the Class B Reserve Account the amount of such Class B Interest Shortfall and to
deposit such amount in the Note Distribution Account for distribution in
accordance with Section 8.02(c)(4) of the Indenture.  Funds in the Class B
Reserve Account shall, at the direction of the Servicer, be invested in Eligible
Investments of the kind described in clauses (i) and (ii) of the definition of
"Eligible Investment".  On each Distribution Date, any Class B Reserve Account
Excess Amount (after giving effect to any withdrawals on the immediately
preceding Distribution Date as described above) shall be distributed to the
Class C Certificateholder.  On the Distribution Date on which the Class B
Principal Balance is reduced to zero, the Indenture Trustee shall release to the
Originator any amount remaining on deposit in the Class B Reserve Account after
payment of the Class B Notes.

                                      6-7
<PAGE>

                                  ARTICLE VII

                               SERVICE TRANSFER

     SECTION 7.01.  Event of Termination.
                    --------------------

     "Event of Termination" means the occurrence of any of the following (each a
      --------------------
"Servicer Termination Event"):

     (a)  Any failure by the Servicer to make any deposit into an account
required to be made hereunder and the continuance of such failure for a period
of five Business Days after the Servicer has become aware, or should have become
aware, that such deposit was required;

     (b)  Failure on the Servicer's part to observe or perform in any material
respect any covenant or agreement in this Agreement (other than a covenant or
agreement which is elsewhere in this Section specifically dealt with), which
failure shall (i) materially and adversely affect the rights of the Trust, the
Indenture Trustee, or the Securityholders and (ii) continue unremedied for 30
days after the date on which written notice of such failure, requiring the same
to be remedied, shall have been given to the Servicer by the Indenture Trustee
or to the Servicer and the Indenture Trustee by Holders of Notes evidencing not
less than 25% of the Note Principal Balance or, if the Notes have been paid in
full, by Certificateholders evidencing not less than a Certificate Majority.

     (c)  Any assignment by the Servicer of its duties hereunder except as
specifically permitted hereunder, or any attempt to make such an assignment;

     (d)  A court or other governmental authority having jurisdiction in the
premises shall have entered a decree or order for relief in respect of the
Servicer in an involuntary case under any applicable 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 Servicer, as the case may be, or for any substantial liquidation of its
affairs, and such order remains undischarged and unstayed for at least 60 days;

     (e)  The Servicer shall have commenced a voluntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or shall have consented to the entry of an order for relief in an
involuntary case under any such law, or shall have consented to the appointment
of or taking possession by a receiver, liquidator, assignee, trustee, custodian
or sequestrator (or other similar official) of the Servicer or for any
substantial part of its property, or shall have made any general assignment for
the benefit of its creditors, or shall have failed to, or admitted in writing
its inability to, pay its debts as they become due, or shall have taken any
corporate action in furtherance of the foregoing; or

     (f)  The failure of the Servicer to be an Eligible Servicer.

                                      7-1
<PAGE>

     SECTION 7.02.  Transfer.
                    --------

     If an Event of Termination has occurred and is continuing, either the
Trust, the Indenture Trustee, a Note Majority, or, if the Notes have been paid
in full, a Certificate Majority, by notice in writing to the Servicer (and to
the Indenture Trustee and Trust if given by the Certificateholders or
Noteholders) may terminate all (but not less than all) of the Servicer's
management, administrative, servicing and collection functions (such termination
being herein called a "Service Transfer").  On receipt of such notice (or, if
later, on a date designated therein), or upon resignation of the Servicer in
accordance with Section 10.01, all authority and power of the Servicer under
this Agreement, whether with respect to the Contracts, the Contract Files or
otherwise (except with respect to the Collection Account, the transfer of which
shall be governed by Section 7.06), shall pass to and be vested in the Indenture
Trustee pursuant to and under this Section 7.02; and, without limitation, the
Indenture Trustee is authorized and empowered to execute and deliver on behalf
of the Servicer, as attorney-in-fact or otherwise, any and all documents and
other instruments (including, without limitation, documents required to make the
Indenture Trustee or a successor servicer the sole lienholder or legal title
holder of record of each Product) and to do any and all acts or things necessary
or appropriate to effect the purposes of such notice of termination.  Each of
the Originator and the Servicer agrees to cooperate with the Indenture Trustee
in effecting the termination of the responsibilities and rights of the Servicer
hereunder, including, without limitation, the transfer to the Indenture Trustee
for administration by it of all cash amounts which shall at the time be held by
the Servicer for deposit, or have been deposited by the Servicer, in the
Collection Account, or for its own account in connection with its services
hereafter or thereafter received with respect to the Contracts and the execution
of any documents required to make the Indenture Trustee or a successor servicer
the sole lienholder or legal title holder of record in respect of each Product.
The Servicer shall be entitled to receive any other amounts which are payable to
the Servicer under this Agreement, at the time of the termination of its
activities as Servicer.  The Servicer shall transfer to the new servicer (i) the
Servicer's records relating to the Contracts in such electronic form as the new
servicer may reasonably request and (ii) any Contracts and Contract Files in the
Servicer's possession.

     SECTION 7.03.  Indenture Trustee to Act; Appointment of Successor.
                    --------------------------------------------------

     On and after the time the Servicer receives a notice of termination
pursuant to Section 7.02 or the resignation of the Servicer in accordance with
Section 10.01, the Indenture Trustee shall be the successor in all respects to
the Servicer in its capacity as servicer under this Agreement and the
transactions set forth or provided for herein and shall be subject to all the
responsibilities, duties and liabilities relating thereto placed on the Servicer
by the terms and provisions hereof and the Servicer shall be relieved of such
responsibilities, duties and liabilities arising after such Service Transfer;
provided, however, that (i) the Indenture Trustee will not assume any
--------  -------
obligations of the Originator pursuant to Section 3.05 and (ii) the Indenture
Trustee shall not be liable for any acts or omissions of the Servicer occurring
prior to such Service Transfer or for any breach by the Servicer of any of its
obligations contained herein or in any related document or agreement.  As
compensation therefor, the Indenture Trustee shall be entitled to receive
reasonable compensation not in excess of the Monthly Servicing Fee.
Notwithstanding the above, the Indenture Trustee may, if it shall be unwilling
so to act, or shall, if it is legally unable so to act, appoint, or petition a
court of competent jurisdiction to appoint, an

                                      7-2
<PAGE>

Eligible Servicer as the successor to the Servicer hereunder in the assumption
of all or any part of the responsibilities, duties or liabilities of the
Servicer hereunder. Pending appointment of a successor to the Servicer
hereunder, unless the Indenture Trustee is prohibited by law from so acting, the
Indenture Trustee shall act in such capacity as hereinabove provided. In
connection with such appointment and assumption, the Indenture Trustee may make
such arrangements for the compensation of such successor out of payments on
Contracts as it and such successor shall agree; provided, however, that no such
                                                --------  -------
monthly compensation shall, without the written consent of 100% of the
Noteholders, exceed the Monthly Servicing Fee. The Indenture Trustee and such
successor shall take such action, consistent with this Agreement, as shall be
necessary to effectuate any such succession.

     SECTION 7.04.  Notification to Securityholders.
                    -------------------------------

     (a) Promptly following the occurrence of any Event of Termination, the
Servicer shall give written notice thereof to the Indenture Trustee, the Trust,
Standard & Poor's, and Moody's.

     (b) Within ten days following any termination or appointment of a successor
to the Servicer pursuant to this Article VII, the Owner Trustee on behalf of the
Trust shall give written notice thereof to Standard & Poor's, Moody's and the
Certificateholders at their respective addresses appearing on the Certificate
Register and the Indenture Trustee shall give written notice thereof to
Noteholders at their respective addresses appearing in the Note Register.

     (c) The Owner Trustee on behalf of the Trust shall give written notice to
Standard & Poor's and Moody's at least 30 days prior to the date upon which any
Eligible Servicer (other than the Trustee) is to assume the responsibilities of
Servicer pursuant to Section 7.03, naming such successor Servicer.

     SECTION 7.05.  Effect of Transfer.
                    ------------------

     (a) After the Service Transfer, the Indenture Trustee or new Servicer may
notify Obligors to make payments directly to the new Servicer that are due under
the Contracts after the effective date of the Service Transfer.

     (b) After the Service Transfer, the replaced Servicer shall have no further
obligations with respect to the management, administration, servicing or
collection of the Contracts and the new Servicer shall have all of such
obligations, except that the replaced Servicer will transmit or cause to be
             ------
transmitted directly to the new Servicer for its own account, promptly on
receipt and in the same form in which received, any amounts (properly endorsed
where required for the new Servicer to collect them) received as payments upon
or otherwise in connection with the Contracts.

     (c) A Service Transfer shall not affect the rights and duties of the
parties hereunder (including but not limited to the indemnities of the Servicer
and the Originator pursuant to Article IX and Sections 3.05 and 5.19) other than
those relating to the management, administration, servicing or collection of the
Contracts.

                                      7-3
<PAGE>

     SECTION 7.06.  Transfer of Collection Account.
                    ------------------------------

     Notwithstanding the provisions of Section 7.02, if the Collection Account
shall be maintained with the Servicer and an Event of Termination shall occur
and be continuing, the Servicer shall, after five days' written notice from the
Indenture Trustee, or in any event within ten days after the occurrence of the
Event of Termination, establish an Eligible Account with an institution other
than the Servicer and promptly transfer all funds in the Collection Account to
such new account, which shall thereafter be deemed the Collection Account for
the purposes hereof.

     SECTION 7.07.  Limits on Liability.
                    -------------------

     The Servicer will be liable to the Trust, the Owner Trustee, the Indenture
Trustee and the Securityholders only to the extent of the obligations
specifically undertaken by the Servicer under this Agreement and will have no
other obligations or liabilities hereunder.  Neither the Servicer nor any of its
directors, officers, employees or agents will have any liability to the Trust,
the Owner Trustee, the Indenture Trustee or the Securityholders (except as
explicitly provided in this Agreement) for any action taken, or for refraining
from taking any action, pursuant to this Agreement, other than any liability
that would otherwise be imposed by reason of the Servicer's breach of this
Agreement or willful misfeasance, bad faith or negligence (including errors in
judgment) in the performance of its duties, or by reason of reckless disregard
of obligations and duties under this Agreement or any violation of law.

     SECTION 7.08.  Waiver of Past Defaults.
                    -----------------------

     A Note Majority or, if the Notes have been paid in full, Certificate
Majority may, on behalf of all Holders of Notes and Certificates, waive any
default by the Servicer in the performance of its obligations hereunder and its
consequences.  Upon any such waiver of a past default, such default shall cease
to exist, and any Event of Termination 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 thereon.

                                      7-4
<PAGE>

                                 ARTICLE VIII

                                  TERMINATION

     SECTION 8.01.  Class C Certificateholder's Purchase Option; Auction Sale;
                    ----------------------------------------------------------
Accelerated Principal Distribution Amount.
-----------------------------------------

     (a)  The Class C Certificateholder shall, subject to subsection (b) hereof,
have the option to purchase all of the Contracts and all property acquired in
respect of any Contract remaining in the Trust at a price (such price being
referred to as the "Minimum Purchase Price") equal to the greatest of:

          (i)   the sum of (x) 100% of the principal balance of each Contract
     (other than any Contract as to which title to the underlying property has
     been acquired and whose fair market value is included pursuant to clause
     (y) below), together with accrued and unpaid interest on each such Contract
     at a rate per annum equal to the actual Contract Rate, plus (y) the fair
     market value of such acquired property (as reasonably determined by the
     Servicer as of the close of business on the third Business Day preceding
     the date of such purchase),

          (ii)  the aggregate Note Principal Balance as of the date of such
     purchase (less any amounts on deposit in the Collection Account or the Note
     Distribution Account on such purchase date and representing payments of
     principal in respect of the Contracts) plus an amount necessary to pay the
     Class A Interest Amount, the Class M Interest Amount and the Class B
     Interest Amount, any Unpaid Class A Interest Shortfall, any Unpaid Class M
     Interest Shortfall and any Class B Interest Shortfall due on the
     Distribution Date occurring in the calendar month following such purchase
     date (less any amounts on deposit in the Collection Account or the Note
     Distribution Account on such purchase date and representing payments of
     interest in respect of the Contracts, net of any amounts required to be
     paid therefrom to the Servicer or any Person other than the Noteholders),
     and

          (iii) the aggregate fair market value, as determined by the Servicer,
     of all of the assets of the Trust, plus, in each case, any unpaid interest
     at the applicable interest rate on each Class of Notes, as well as one
     month's interest at the applicable Contract Rate on the Scheduled Principal
     Balance of each Contract.

     (b)  The purchase by the Class C Certificateholder of all of the Contracts
pursuant to this Section 8.01 shall be conditioned upon:

          (i)   the Pool Scheduled Principal Balance, at the time of any such
     purchase, must be less than 20% of the Cut-off Date Pool Principal Balance,

          (ii)  the Class C Certificateholder having provided the Indenture
     Trustee, the Owner Trustee and the Depository (if any) with at least 30
     days' written notice, and

                                      8-1
<PAGE>

          (iii) the Indenture Trustee not having accepted a qualifying bid for
     the Contracts pursuant to subsection (e) below.

     (c) The Class C Certificateholder may assign its rights under this Section
8.01, separately from its other rights as Holder of the Class C Certificate, by
giving written notice of such assignment to the Indenture Trustee, S&P and
Moody's.  Following the Indenture Trustee's receipt of such notice of
assignment, the Indenture Trustee shall recognize only such assignee (or its
assignee in turn) as the Person entitled to exercise the purchase option set
forth in Section 8.01(a).

     (d) The Servicer shall notify the Indenture Trustee and the Class C
Certificateholder (whether or not the Class C Certificateholder has then
assigned its rights under this Section 8.01 pursuant to subsection (c)) no later
than two Business Days after the Determination Date relating to the first
Monthly Period which includes the date on which the Pool Scheduled Principal
Balance first becomes less than 20% of the Cut-off Date Pool Principal Balance,
to the effect that the Pool Scheduled Principal Balance is then less than 20% of
the Cut-off Date Pool Principal Balance.

     SECTION 8.02.  Liquidation or Sale of Trust Estate.
                    -----------------------------------

     Upon any sale of the assets of the Trust pursuant to Sections 10.04 of the
Indenture, the Trust shall instruct the Indenture Trustee or the Owner Trustee,
as the case may be, to deposit the proceeds from such sale after all payments
and reserves therefrom have been made in the Collection Account.  On the
Distribution Date on which such proceeds are deposited in the Collection Account
(or, if such proceeds are not so deposited on a Distribution Date, on the
Distribution Date immediately following such deposit), the Trust shall instruct
the Indenture Trustee to distribute such funds, together with all other amounts
available, in accordance with the terms of Section 6.04(a).

                                      8-2
<PAGE>

                                  ARTICLE IX

                                  INDEMNITIES

     SECTION 9.01.  Originator's Indemnities.
                    ------------------------

     The Originator will defend and indemnify the Trust, the Owner Trustee, the
Indenture Trustee (including the paying agent and any other agents of the Owner
Trustee and the Indenture Trustee), and the Securityholders against any and all
costs, expenses, losses, damages, taxes, claims and liabilities, including
reasonable fees and expenses of counsel and expenses of litigation of any third-
party claims arising out of or resulting from (i) the origination of any
Contract (including but not limited to truth in lending requirements) or the
servicing of such Contract prior to its transfer to the Trust (but only to the
extent such cost, expense, loss, damage, tax, claim or liability is not provided
for by the Originator's repurchase of such Contract pursuant to Section 3.05),
(ii) the use or ownership of any Products by the Originator or the Servicer or
any Affiliate of either, or (iii) the Originator's or the Trust's violation of
federal or state securities laws in connection with the offering and sale of the
Securities.  Notwithstanding any other provision of this Agreement, the
obligation of the Originator under this Section shall not terminate upon a
Service Transfer pursuant to Article VII, except that the obligation of the
Originator under this Section shall not relate to the actions of any subsequent
Servicer after a Service Transfer.

     SECTION 9.02.  Liabilities to Obligors.
                    -----------------------

     No obligation or liability to any Obligor under any of the Contracts is
intended to be assumed by the Trust, the Owner Trustee, Indenture Trustee, or
the Securityholders under or as a result of this Agreement and the transactions
contemplated hereby and, to the maximum extent permitted and valid under
mandatory provisions of law, the Trust, the Owner Trustee, Indenture Trustee,
and the Securityholders expressly disclaim such assumption.

     SECTION 9.03.  Servicer's Indemnities.
                    ----------------------

          (a) The Servicer shall indemnify, defend and hold harmless the Trust,
the Owner Trustee, the Indenture Trustee (including the Paying Agent and any
other agents of the Owner Trustee and the Indenture Trustee), their respective
officers, directors, agents and employees and the Noteholders from and against
any and all costs, expenses, losses, claims, damages and liabilities to the
extent that such cost, expense, loss, claim, damage or liability arose out of,
or was imposed upon any of them through the Servicer's breach of this Agreement,
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.

          (b) Indemnification under this Section 9.03 shall include, without
limitation, reasonable fees and expenses of counsel and expenses of litigation.
If the Servicer has made any indemnity payments pursuant to this Section and the
recipient thereafter collects any of such

                                      9-1
<PAGE>

amounts from others, the recipient shall promptly repay such amounts collected
to the Servicer, together with any interest earned thereon.

          (c) Conseco Finance Corp., in its individual capacity, hereby
acknowledges that the indemnification provisions in the Transfer Agreement
benefitting the Trust, the Owner Trustee and the Indenture Trustee are
enforceable by each hereunder.

          (d) The provisions of this Section shall survive the termination of
the Related Documents.

     SECTION 9.04.  Operation of Indemnities.
                    ------------------------

     Indemnification under this Article shall include, without limitation,
reasonable fees and expenses of counsel and expenses of litigation.  If the
Originator or the Servicer has made any indemnity payments pursuant to this
Article and the recipient thereafter collects any of such amounts from others,
the recipient will repay such amounts collected to the Originator or the
Servicer, as the case may be, without interest.

                                      9-2
<PAGE>

                                   ARTICLE X

                                 MISCELLANEOUS

     SECTION 10.01.  Servicer Not to Assign Duties or Resign; Delegation of
                     ------------------------------------------------------
Servicing Duties.
----------------

     The Servicer may not sell or assign its rights and duties as Servicer
hereunder, except as expressly provided for herein, provided that the Servicer
may pledge or assign the right to receive all or any portion of the Monthly
Servicing Fee payable to it.  The Servicer shall not resign from the obligations
and duties hereby imposed on it except upon determination that the performance
of its duties hereunder is no longer permissible under applicable law or is in
material conflict by reason of applicable law with any other activities carried
on by it.  Any such determination permitting the resignation of the Servicer
shall be evidenced by an Opinion of Counsel for the Servicer to such effect
addressed and delivered to the Trust and the Indenture Trustee.  No such
resignation shall become effective until the Indenture Trustee or a successor
servicer shall have assumed the responsibilities and obligations of the Servicer
in accordance with Sections 7.02 and 7.03.

     Notwithstanding the foregoing:

          (a) Any person into which the Servicer may be merged or consolidated,
     or any corporation resulting from any merger, conversion or consolidation
     to which the Servicer shall be a party, or any Person succeeding to the
     business of the Servicer, shall be the successor of the Servicer hereunder,
     without the execution or filing of any paper or any further act on the part
     of any of the parties hereto, anything herein to the contrary
     notwithstanding; provided, however, that the successor or surviving Person
                      --------  -------
     to the Servicer shall satisfy the criteria set forth in the definition of
     an Eligible Servicer.  The Servicer shall promptly notify Standard & Poor's
     and Moody's of any such merger to which it is a party.

          (b) The Servicer may delegate duties under this Agreement to any of
     the Servicer's Affiliates.  In addition, the Servicer may at any time
     perform the specific duty of repossessing Products through subcontractors
     who are in the business of servicing consumer receivables, and may also
     perform other specific duties through subcontractors; provided that the
     Servicer gives notice to the Trust and the Indenture Trustee and each of
     Standard & Poor's and Moody's, and provided further that no such delegation
     of duties by the Servicer shall relieve the Servicer of its responsibility
     with respect thereto.

     SECTION 10.02.  Assignment or Delegation by Originator.
                     --------------------------------------

     Except as specifically authorized hereunder, and except for its obligations
as Servicer which are dealt with under Article V and Article VII, the Originator
may not convey and assign or delegate any of its rights or obligations hereunder
absent the prior written consent of a Note Majority and a Certificate Majority,
and any attempt to do so without such consent shall be void.

                                     10-1
<PAGE>

It is understood that the foregoing does not prohibit the pledge or assignment
by the Originator of any right to payment pursuant to Article VI.

     Notwithstanding the foregoing, any Person into which the Originator may be
merged or consolidated, or any corporation resulting from any merger, conversion
or consolidation to which the Originator shall be a party, or any Person
succeeding to the business of the Originator, shall be the successor of the
Originator hereunder, without the execution or filing of any paper or any
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding. The Originator shall promptly notify Standard & Poor's
and Moody's of any such merger to which it is a party.

     SECTION 10.03.  Amendment.
                     ---------

     (a) This Agreement may be amended from time to time by the Originator, the
Servicer, the Seller and the Trust, with the prior written consent of the
Indenture Trustee but without the consent of any of the Securityholders, to
correct manifest error, to cure any ambiguity, to correct or supplement any
provisions herein which may be inconsistent with any other provisions herein, as
the case may be, including, without limitation, to add or amend any provision as
required by Standard & Poor's, Moody's, or any other nationally recognized
statistical rating organization in order to improve or maintain the rating of
any Class of Notes or the Certificates, provided, however, that such action
                                        --------  -------
shall not, as evidenced by an Opinion of Counsel for the Originator, adversely
affect in any material respect the interests of any Securityholder.

     (b) This Agreement may also be amended from time to time by the Originator,
the Servicer, the Seller and the Trust with the prior written consent of the
Indenture Trustee and with the consent of a Certificate Majority and a Note
Majority with respect to each Class (which consent of any Holder of a
Certificate or Note given pursuant to this Section or pursuant to any other
provision of this Agreement shall be conclusive and binding on such Holder and
on all future Holders of such Certificate or Note and of any Certificate or Note
issued upon the transfer thereof or in exchange thereof or in lieu thereof
whether or not notation of such consent is made upon the Certificate or Note)
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Agreement, or of modifying in any
manner the rights of the Holders of Certificates or Notes; provided, however, no
                                                           --------  -------
such amendment shall (a) increase or reduce in any manner the amount of, or
accelerate or delay the timing of, collections of payments on Contracts or
distributions required to be made on any Certificate or Note or the Class A-1
Interest Rate, the Class A-2 Interest Rate, the Class A-3 Interest Rate, Class
M-1 Interest Rate, the Class M-2 Interest Rate or Class B Interest Rate, (b)
amend any provisions of Section 6.04 in such a manner as to affect the priority
of payment of interest, principal or premium to Noteholders or
Certificateholders, or (c) reduce the aforesaid percentage required to consent
to any such amendment or any waiver hereunder, without the consent of the
Holders of all Securities then outstanding, and provided further, that the
                                                -------- -------
Rating Agency Condition has been satisfied.

     (c) Concurrently with the solicitation of any consent pursuant to this
Section 10.03, the Indenture Trustee shall furnish written notification to
Standard & Poor's and Moody's of

                                     10-2
<PAGE>

such solicitation. Promptly after the execution of any amendment pursuant to
this Section 10.03, the Indenture Trustee shall furnish written notification of
the substance of such amendment to Standard & Poor's, Moody's and each
Securityholder.

     (d) It shall not be necessary for the consent of Securityholders under this
Section 10.03 to approve the particular form of any proposed amendment, but it
shall be sufficient if such consent shall approve the substance thereof.  The
manner of obtaining such consents and of evidencing the authorization of the
execution thereof by Securityholders shall be subject to such reasonable
requirements as the Indenture Trustee may prescribe.

     (e) Each of the Owner Trustee and Indenture Trustee may, but shall not be
obligated to, enter into any such amendment which affects its own rights, duties
or immunities under this Agreement or otherwise.

     (f) In connection with any amendment pursuant to this Section, the Owner
Trustee and Indenture Trustee shall be entitled to receive an unqualified
Opinion of Counsel to the Servicer to the effect that such amendment is
authorized or permitted by the Agreement.

     (g) Upon the execution of any amendment or consent pursuant to this Section
10.03, this Agreement shall be modified in accordance therewith, and such
amendment or consent shall form a part of this Agreement for all purposes, and
every Securityholder hereunder shall be bound thereby.

     SECTION 10.04.  Notices.
                     -------

     All communications and notices pursuant hereto to the Servicer, the
Originator, the Trust, the Owner Trustee, the Indenture Trustee, Standard &
Poor's and Moody's shall be in writing and delivered (by facsimile or other
means) or mailed to it at the appropriate following address:

          If to the Originator or the Servicer:

               Conseco Finance Corp.
               1100 Landmark Towers
               345 St. Peter Street
               St. Paul, Minnesota 55102-1639
               Attention:  Chief Financial Officer
               Telecopier Number: (651) 293-5746

          If to the Seller:

               1100 Landmark Towers
               345 St. Peter Street
               St. Paul, Minnesota 55102-1639
               Attention: Chief Financial Officer
               Telecopier Number: (651) 293-5846

                                     10-3
<PAGE>

          If to the Trust or Owner Trustee:

               Wilmington Trust Company
               Rodney Square North
               1100 North Market Street
               Wilmington, Delaware 19890-0001
               Attention: Corporate Trust Administration
               Telecopier Number: 302-651-8882

          If to the Indenture Trustee:

               U.S. Bank Trust National Association
               180 East Fifth Street
               St. Paul, Minnesota 55101
               Attention:  Corporate Trust Administration, Structured Finance
               Telecopier Number: (612) 244-0089

          If to Standard & Poor's:

               Standard & Poor's Ratings Services
               55 Water Street
               New York, New York 10041
               Attention:  Asset-Backed Surveillance
               Telecopier Number: (212) 208-8208

          If to Moody's:

               Moody's Investors Service, Inc.
               99 Church Street
               New York, NY 10007
               Attention:  Structured Finance Surveillance Group
               Telecopier Number: (212) 298-7139
               With a copy to: (212) 553-0573

or at such other address as the party may designate by notice to the other
parties hereto, which notice shall be effective when received.

     All communications and notices pursuant hereto to a Securityholder shall be
in writing and delivered or mailed at the address shown in the Note Register or
the Certificate Register, as applicable.

     SECTION 10.05.  Merger and Integration.
                     ----------------------

     Except as specifically stated otherwise herein, this Agreement sets forth
the entire understanding of the parties relating to the subject matter hereof,
and all prior understandings,

                                     10-4
<PAGE>

written or oral, are superseded by this Agreement. This Agreement may not be
modified, amended, waived or supplemented except as provided herein.

     SECTION 10.06.  Headings.
                     --------

     The headings herein are for purposes of reference only and shall not
otherwise affect the meaning or interpretation of any provision hereof.

     SECTION 10.07.  Governing Law.
                     -------------

     This Agreement shall be governed by, and construed and enforced in
accordance with, the laws of the State of Minnesota.

     SECTION 10.08.  Limitation of Liability.
                     -----------------------

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

     SECTION 10.09.  Seller's Charter; Residual Interests.  In the event that
                     ------------------------------------
the Seller shall amend, restate or otherwise change its Articles of
Incorporation, Seller shall promptly notify Standard & Poor's and Moody's of
such amendment, restatement or change.  In the event that the Seller shall
become the holder of the Class C Certificate or the residual interest in any
other special-purpose entity, the Seller shall promptly notify Standard & Poor's
and Moody's that it has become the holder of the Class C Certificate.

                                     10-5
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective officers thereunto duly authorized this 1st
day of June, 2000.

                                  ISSUER:

                                  CONSECO FINANCE RECREATIONAL
                                  ENTHUSIAST CONSUMER TRUST 2000-A

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

                                  By  /s/ Patricia A. Evans
                                      ------------------------------------------
                                      Name:  Patricia A. Evans
                                           -------------------------------------
                                      Title: Senior Financial Services Officer
                                            ------------------------------------

                                  SELLER:

                                  CONSECO FINANCE SECURITIZATIONS CORP.

                                  By  /s/ Phyllis A. Knight
                                      ------------------------------------------
                                      Name: Phyllis A. Knight
                                           -------------------------------------
                                      Title: Senior Vice President and Treasurer
                                             -----------------------------------

                                  ORIGINATOR AND SERVICER:

                                  CONSECO FINANCE CORP.

                                  By  /s/ Phyllis A. Knight
                                      ------------------------------------------
                                      Name: Phyllis A. Knight
                                           -------------------------------------
                                      Title: Senior Vice President and Treasurer
                                             -----------------------------------

                                     10-6
<PAGE>

Acknowledged and Accepted:

U.S. BANK TRUST NATIONAL ASSOCIATION,
not in its individual capacity
but solely as Indenture Trustee

By  __________________________________
    Name:  ___________________________
    Title: ___________________________

By  __________________________________
    Name:  ___________________________
    Title: ___________________________

                                       10-7
<PAGE>

                                                                       EXHIBIT A

                              FORM OF ASSIGNMENT

     In accordance with the Sale and Servicing Agreement (the "Agreement") dated
as of June 1, 2000 among Conseco Finance Corp. (the "Originator"), Conseco
Finance Securitizations Corp., as Seller, (the "Seller"), and Conseco Finance
Recreational Enthusiast Consumer Trust 2000-A, the Seller does hereby transfer,
assign, set over and otherwise convey to the Trust all right, title and interest
of the Originator in (i) the retail installment sales contracts and promissory
notes for the purchase of a variety of Products (collectively, the "Initial
Contracts") identified in the List of Contracts delivered pursuant to Section
2.02(a) of the Agreement, a copy of which List is attached hereto, including,
without limitation, all related Collateral Security, all security interests
created thereby and any and all rights to receive payments which are due
pursuant thereto from and after June 1, 2000, but excluding any rights to
receive payments which were due pursuant thereto prior to June 1, 2000, (ii) the
Insurance Policies on any Products securing an Initial Contract for the benefit
of the creditor of such Contract and all rights under all blanket insurance
policies to the extent they relate to the Contracts, (iii) all rights of the
Seller under the Transfer Agreement and each Subsequent Transfer Agreement; (iv)
the Errors and Omissions Protection Policy as such policy relates to the
Contracts, (v) all items contained in the Contract Files, (vi) the Trust
Accounts and all funds on deposit therein from time to time and all investments
and proceeds thereof (including all income thereon), and (vii) all proceeds in
any way derived from any of the foregoing.  Capitalized terms used herein but
not defined herein have the meanings assigned to them in the Agreement.

     This Assignment is made pursuant to and upon the representation and
warranties on the part of the undersigned contained in Article III of the
Agreement and no others.

     IN WITNESS WHEREOF, the undersigned has caused this Assignment to be duly
executed this ___ day of _______________, 2000.

                              CONSECO FINANCE SECURITIZATIONS CORP.

                              By:  ___________________________________
                                   Name:  ____________________________
                                   Title: ____________________________

                                      A-1
<PAGE>

                                                                       EXHIBIT B

                         FORM OF CERTIFICATE REGARDING
                             REPURCHASED CONTRACTS

                             CONSECO FINANCE CORP.

                  CERTIFICATE REGARDING REPURCHASED CONTRACTS

     The undersigned certifies that [s]he is a [title] of Conseco Finance Corp.,
                                                -----
a Delaware corporation (the "Originator"); [s]he is duly authorized to execute
and deliver this certificate on behalf of the Servicer pursuant to Section 3.05
of the Sale and Servicing Agreement (the "Agreement"), dated as of June 1, 2000
among the Originator, the Servicer, Conseco Finance Securitizations Corp., as
Seller, and Conseco Finance Recreational Enthusiast Consumer Trust 2000-A (the
"Trust") (all capitalized terms used herein without definition having the
respective meanings specified in the Agreement):

          1.   The Contracts on the attached schedule are to be repurchased by
     the [Originator] [Servicer] on the date hereof pursuant to Section [3.05]
     [5.20] of the Agreement.

          2.   Upon deposit of the Repurchase Price for such Contracts, such
     Contracts may, pursuant to Section [3.05] [5.20] of the Agreement, be
     assigned by the Trust to the [Originator] [Servicer].

     IN WITNESS WHEREOF, I have affixed hereunto my signature this ____ day of
________, 200_.

                                      CONSECO FINANCE CORP.

                                      By:  ___________________________________
                                           Name:  ____________________________
                                           Title: ____________________________

                                      B-1
<PAGE>

                                                                       EXHIBIT C

                            FORM OF MONTHLY REPORT
                                [To Be Updated]

         CONSECO FINANCE RECREATIONAL ENTHUSIAST CONSUMER TRUST 2000-A

                                                      Distribution Date: _______

1.   Amount Available                                                    _______
     (a)  Collection Account balance as of last day
          of related Monthly Period                                      _______
     (b)  Payments on account
          of principal deposited during                                  _______
          first 10 days of current month
     (c)  Less payments on account of principal deposited
          during first 10 days of preceding month                        _______
     (d)  Repurchase Proceeds                                            _______
     (e)  Servicer Advances                                              _______
     (f)  Self-Insurance Payments                                        _______
     (g)  Termination Payments                                           _______
     (h)  Payments on Liquidation or Auction of Trust Estate             _______

2.   Monthly Servicing Fee (if Conseco Finance is not the Servicer)      _______

3.   Servicer Advances reimbursed                                        _______

Note Interest
-------------

4.   Amount actually distributed on account of Note
     interest (current plus carryover)                                   _______

5.   Class A-1 Principal Balance                                         _______

6.   Class A-1 Interest Amount                                           _______

7.   Class A-2 Principal Balance                                         _______

8.   Class A-2 Interest Amount                                           _______

9.   Class A-3 Principal Balance                                         _______

10.  Class A-3 Interest Amount                                           _______

                                      C-1
<PAGE>

11.  Class M-1 Principal Balance                                         _______

12.  Class M-1 Interest Amount                                           _______

13.  Class M-2 Principal Balance                                         _______

14.  Class M-2 Interest Amount                                           _______

15.  Amount applied to Class A-1 Interest Amount                         _______

16.  Amount applied to Class A-2 Interest Amount                         _______

17.  Amount applied to Class A-3 Interest Amount                         _______

18.  Amount applied to Class M-1 Interest Amount                         _______

19.  Amount applied to Class M-2 Interest Amount                         _______

20.  Class A-1 Interest Shortfall                                        _______

21.  Amount applied to Unpaid Class A-1 Interest Shortfall               _______

22.  Remaining Unpaid Class A-1 Interest Shortfall                       _______

23.  Class A-2 Interest Shortfall                                        _______

24.  Amount applied to Unpaid Class A-2 Interest Shortfall               _______

25.  Remaining Unpaid Class A-2 Interest Shortfall                       _______

26.  Class A-3 Interest Shortfall                                        _______

27.  Amount applied to Unpaid Class A-3 Interest Shortfall               _______

28.  Remaining Unpaid Class A-3 Interest Shortfall                       _______

29.  Class M-1 Interest Shortfall                                        _______

30.  Amount applied to Unpaid Class M-1 Interest Shortfall               _______

31.  Remaining Unpaid Class M-1 Interest Shortfall                       _______

32.  Class M-2 Interest Carryover Shortfall                              _______

33.  Amount applied to Unpaid Class M-2 Interest Shortfall               _______

                                      C-2
<PAGE>

34.  Remaining Unpaid Class M-2 Interest Shortfall                      ________

Total Principal Distribution Amount
-----------------------------------

35.  Formula Principal Distribution Amount:
     (a)  Scheduled principal                                           ________
     (b)  Principal Prepayments                                         ________
     (c)  Liquidated Contracts                                          ________
     (d)  Repurchases                                                   ________

36.  Aggregate of Formula Principal Shortfalls from prior
     Distribution Dates                                                 ________

37.  Additional Principal Distribution Amount (if applicable)           ________

38.  Overcollateralizaiton limit (if applicable)                        ________

39.  Total Note Principal Distribution Amount
     (line 35, plus line 36, plus line 37, minus line 38)               ________

40.  Amount actually distributed on account of principal (lesser of
     line 19 or remaining Amount Available):
     (a)  Class A-1                                                     ________
     (b)  Class A-2                                                     ________
     (c)  Class A-3                                                     ________
     (d)  Class M-1                                                     ________
     (e)  Class M-2                                                     ________

41.  Formula Principal Shortfall for this Distribution Date
     (line 17 minus line 40, but not less than zero)                    ________

Portfolio Information
---------------------

42.  Pool Scheduled Principal Balance                                   ________

43.  Pool Factor
     (a)  Class A-1                                                     ________
     (b)  Class A-2                                                     ________
     (c)  Class A-3                                                     ________
     (d)  Class M-1                                                     ________
     (e)  Class M-2                                                     ________

Aggregate Scheduled Balances of delinquent Contracts as of Determination Date

                                      C-3
<PAGE>

44.  30 - 59 days
     (a)  Number                                                        ________
     (b)  Aggregate Principal Amount                                    ________

45.  60 - 89 days
     (a)  Number                                                        ________
     (b)  Aggregate Principal Amount                                    ________

46.  90 days or more
     (a)  Number                                                        ________
     (b)  Aggregate Principal Amount                                    ________

47.  Aggregate Scheduled Balances and number of Contracts that
     became Defaulted Contracts this month                              ________

48.  Aggregate Scheduled Balances and number of all Defaulted
     Contracts as of end of month                                       ________

49.  Number of Products in Repossession of as of end of month           ________

50.  Number of Contracts that became Liquidated Contracts               ________

51.  Aggregate Amount of Servicer Advances with
     respect to current Distribution Date                               ________

52.  Amount paid to Servicer as reimbursement for
     prior Servicer Advances                                            ________

53.  Average Sixty-Day Delinquency Ratio                                ________

54.  Cumulative Realized Losses                                         ________

     The amounts of principal and interest distributions set out above are
expressed as a dollar amount per $1,000 denomination of Note.

     Please contact ____________________ of U.S. Bank Trust National
Association, ____________________ with any questions regarding this Statement or
your Distribution.

                                      C-4
<PAGE>

                                                                       EXHIBIT D

                   FORM OF CERTIFICATE OF SERVICING OFFICER

                             CONSECO FINANCE CORP.

     The undersigned certifies that [s]he is a [title] of Conseco Finance Corp.,
                                                -----
a Delaware corporation (the "Originator"), and that as such [s]he is duly
authorized to execute and deliver this certificate on behalf of the Servicer
pursuant to Section 5.14 of the Sale and Servicing Agreement (the "Agreement")
dated as of June 1, 2000 among the Servicer, Conseco Finance Securitizations
Corp., as Seller, and Conseco Finance Recreational Enthusiast Consumer Trust
2000-A (all capitalized terms used herein without definition having the
respective meanings specified in the Agreement), and further certifies that:

          1.   The Monthly Report for the period from __________ to __________
     attached to this certificate is complete and accurate in accordance with
     the requirements of Section 5.14 of the Agreement; and

          2.   As of the date hereof, no Event of Termination or event that with
     notice or lapse of time or both would become an Event of Termination has
     occurred.

     IN WITNESS WHEREOF, I have affixed hereunto my signature this ______ day of
_____________, 20___.

                                             CONSECO FINANCE CORP.

                                             By: ______________________________
                                                 Name:_________________________
                                                 Title:________________________

                                      D-1
<PAGE>

                                                                       EXHIBIT E

                            FORM OF ADDITION NOTICE

                                                                  ________, 2000

U.S. Bank Trust National Association
180 East Fifth Street
St. Paul, MN 55101

     Re:  Sale and Servicing Agreement (the "Agreement"), dated as of June 1,
          2000, among Conseco Finance Corp. (the "Originator") , Conseco Finance
          Securitizations Corp. (the "Seller") and Conseco Finance Recreational
          Enthusiast Consumer Trust 2000-A (the "Trust")

Ladies and Gentlemen:

     Capitalized terms not otherwise defined in this Notice have the meanings
given them in the Agreement.  The Seller hereby notifies the Indenture Trustee
of an assignment to the Trust of Subsequent Contracts on the date and in the
amounts set forth below:

     Subsequent Transfer Date: ______________

     Cut-off Date Principal Balance of Subsequent Contracts to be assigned to
Trust on Subsequent Transfer Date: $_______

     Please acknowledge your receipt of this notice by countersigning the
enclosed copy in the space indicated below and returning it to the attention of
the undersigned.

                                          Very truly yours,

                                          CONSECO FINANCE SECURITIZATIONS CORP.

                                          By: ________________________________
                                              Name:
                                              Title:

ACKNOWLEDGED AND AGREED:
U.S. BANK TRUST NATIONAL ASSOCIATION

By: ___________________
Name:
Title:

                                      E-1
<PAGE>

                                                                       EXHIBIT F

                    FORM OF SUBSEQUENT TRANSFER INSTRUMENT
                    --------------------------------------

     In accordance with the Sale and Servicing Agreement (the "Agreement") dated
as of June 1, 2000, among the undersigned, Conseco Finance Corp. and Conseco
Finance Recreational Enthusiast Consumer Trust 2000-A (the "Trust"), the
undersigned does hereby transfer, assign, set over and otherwise convey, without
recourse, to the Trust all right, title and interest of the Seller in and to (1)
the retail installment sales contracts and promissory notes identified in the
List of Contracts attached hereto (each a "Subsequent Contract"), and all moneys
payable thereon or in respect to the Subsequent Contracts, including any
liquidation proceeds therefrom but excluding payments due on the Subsequent
Contracts prior to _____, 2000 (the "Subsequent Cut-off Date"), (2) all rights
of the Seller under the Subsequent Transfer Agreement with Conseco Finance
Corp., (3)  the Errors and Omissions Protection Policy as such policy relates to
the Subsequent Contracts, (4) all items contained in the related Contract Files,
and (5) all proceeds and products of the foregoing.

     This Subsequent Transfer Instrument is made pursuant to and upon the
representation and warranties on the part of the undersigned contained in
Section 2.03 and Article III of the Agreement and no others.  All undefined
capitalized terms used in this Subsequent Transfer Instrument have the meanings
given them in the Agreement.

     IN WITNESS WHEREOF, the undersigned has caused this Subsequent Transfer
Instrument to be duly executed this _____ day of ____________, 1999.

                                        CONSECO FINANCE SECURITIZATIONS CORP.

[Seal]                                  By: ________________________________
                                            Name:___________________________
                                            Title:__________________________

                                      F-1
<PAGE>

                                                                       EXHIBIT G

              FORM OF OFFICER'S CERTIFICATE (SUBSEQUENT TRANSFER)
              ---------------------------------------------------

     The undersigned certifies that [s]he is a [title] of Conseco Finance
Securitizations Corp., a Minnesota corporation (the "Seller"), and that as such
he is duly authorized to execute and deliver this certificate on behalf of the
Seller in connection with the Sale and Servicing Agreement dated as of June 1,
2000 (the "Agreement") among the Seller, Originator, Conseco Finance Corp. and
Conseco Finance Recreational Enthusiast Consumer Trust 2000-A.  All capitalized
terms used herein without definition have the respective meanings specified in
the Agreement.  The undersigned further certifies that:

     1.   This Certificate is delivered in connection with the sale to the Trust
on ______________ (the "Subsequent Transfer Date") of Contracts (the "Subsequent
Contracts") identified in the List of Contracts attached to the Subsequent
Transfer Instrument of even date herewith.

     2.   As of the Subsequent Transfer Date, all representations and warranties
in Section 3.01, 3.02, 3.03 and 3.04 of the Agreement are true and correct; all
representations and warranties in Sections 3.02 and 3.03 of the Agreement with
respect to the Subsequent Contracts are true to the best of [his] [her]
knowledge; and all representations in Section 3.04 of the Agreement with respect
to the Subsequent Contracts are true and correct.

     3.   All conditions precedent to the sale of the Subsequent Contracts to
the Trust under Section 2.03 of the Agreement have been satisfied.

     IN WITNESS WHEREOF, I have affixed hereunto my signature this ____ day of
__________, 2000.

                                                By: __________________________
                                                    Name:_____________________
                                                    Title:____________________

                                      G-1
<PAGE>

                                   EXHIBIT H

                          [LIST OF INITIAL CONTRACTS]

                                      H-1<PAGE>

                                                                     Exhibit 4.3

         CONSECO FINANCE RECREATIONAL ENTHUSIAST CONSUMER TRUST 2000-A

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

                                   INDENTURE

                           Dated as of June 1, 2000

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

                     U.S. BANK TRUST NATIONAL ASSOCIATION
                                    Trustee
<PAGE>

                            CROSS REFERENCE TABLE

<TABLE>
<CAPTION>
  TIA                                                         Indenture
Section                                                        Section
-------                                                       ---------
<S>                                                           <C>
310(a)(1)...................................................     6.11
   (a)(2)...................................................     6.11
   (a)(3)...................................................     6.10
   (a)(4)...................................................     N.A.
   (a)(5)...................................................     6.11
   (b)......................................................     6.08; 6.11
   (c)......................................................     N.A.
311(a)......................................................     6.12
   (b)......................................................     6.12
   (c)......................................................     N.A.
312(a)......................................................     7.01
   (b)......................................................     7.02
   (c)......................................................     7.02
313(a)......................................................     7.04
   (b)(1)...................................................     7.04
   (b)(2)...................................................     7.04
   (c)......................................................     11.05
   (d)......................................................     7.04
314(a)......................................................     7.03
   (b)......................................................     3.06 11.15
   (c)(1)...................................................     11.01
   (c)(2)...................................................     11.01
   (c)(3)...................................................     11.01
   (d)......................................................     11.01
   (e)......................................................     11.01
   (f)......................................................     11.01
315(a)......................................................     6.01
   (b)......................................................     6.05 11.05
   (c)......................................................     6.01
   (d)......................................................     6.01
   (e)......................................................     5.14
316(a)(last sentence).......................................     1.01
   (a)(1)(A)................................................     5.12
   (a)(1)(B)................................................     5.13
   (a)(2)...................................................     N.A.
   (b)......................................................     5.08
   (c)......................................................     N.A.
317(a)(1)...................................................     5.03
   (a)(2)...................................................     5.03
   (b)......................................................     3.03
318(a)......................................................     11.07
</TABLE>

________________
Note: This Cross Reference Table shall not, for any purpose, be deemed to be
----
part of this Indenture.
                           N.A means Not Applicable
<PAGE>

                               TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                           Page
                                                                           ----
<S>                                                                         <C>
ARTICLE I    DEFINITIONS AND INCORPORATION BY REFERENCE ..................  1-1
     SECTION 1.01.   Definitions..........................................  1-1
     SECTION 1.02.   Incorporation by Reference of Trust Indenture Act....  1-9
     SECTION 1.03.   Rules of Construction................................  1-9

ARTICLE II   THE NOTES....................................................  2-1
     SECTION 2.01.   Form.................................................  2-1
     SECTION 2.02.   Execution, Authentication and Delivery...............  2-1
     SECTION 2.03.   Temporary Notes......................................  2-2
     SECTION 2.04.   Registration; Registration of Transfer and Exchange..  2-2
     SECTION 2.05.   Mutilated, Destroyed, Lost or Stolen Notes...........  2-3
     SECTION 2.06.   Person Deemed Owner..................................  2-4
     SECTION 2.07.   Payment of Principal and Interest; Defaulted
                     Interest.............................................  2-4
     SECTION 2.08.   Cancellation.........................................  2-5
     SECTION 2.09.   Book-Entry Notes.....................................  2-5
     SECTION 2.10.   Notices to Depository................................  2-6
     SECTION 2.11.   Definitive Notes.....................................  2-6

ARTICLE III  COVENANTS....................................................  3-1
     SECTION 3.01.   Payment of Principal, Interest and Premium...........  3-1
     SECTION 3.02.   Maintenance of Office or Agency......................  3-1
     SECTION 3.03.   Money for Payments To Be Held in Trust...............  3-1
     SECTION 3.04.   Existence............................................  3-2
     SECTION 3.05.   Protection of Trust Estate...........................  3-3
     SECTION 3.06.   Opinions as to Trust Estate..........................  3-3
     SECTION 3.07.   Performance of Obligations; Servicing of Contracts...  3-4
     SECTION 3.08.   Negative Covenants...................................  3-5
     SECTION 3.09.   Annual Statement as to Compliance....................  3-5
     SECTION 3.10.   Issuer May Consolidate, etc. Only on Certain Terms...  3-6
     SECTION 3.11.   Successor or Transferee..............................  3-8
     SECTION 3.12.   No Other Business....................................  3-8
     SECTION 3.13.   No Borrowing.........................................  3-8
     SECTION 3.14.   Servicer's Obligations...............................  3-8
     SECTION 3.15.   Guarantees, Loans, Advances and Other Liabilities....  3-8
     SECTION 3.16.   Capital Expenditures.................................  3-8
     SECTION 3.17.   Restricted Payments..................................  3-8
     SECTION 3.18.   Notice of Events of Default..........................  3-9
     SECTION 3.19.   Further Instruments and Acts.........................  3-9
     SECTION 3.20.   Compliance with Laws.................................  3-9
     SECTION 3.21.   Amendments of Sale and Servicing Agreement and
                     Trust Agreement......................................  3-9
     SECTION 3.22.   Removal of Administrator.............................  3-9
</TABLE>

                                      -i-
<PAGE>

<TABLE>
<S>                                                                         <C>
     SECTION 3.23.   Income Tax Characterization..........................  3-9
     SECTION 3.24.   Investment Company Act...............................  3-9

ARTICLE IV   SATISFACTION AND DISCHARGE...................................  4-1
     SECTION 4.01.   Satisfaction and Discharge of Indenture..............  4-1
     SECTION 4.02.   Application of Trust Money ..........................  4-2
     SECTION 4.03.   Repayment of Moneys Held by Paying Agent.............  4-2
     SECTION 4.04.   Release of Trust Estate..............................  4-2

ARTICLE V    REMEDIES.....................................................  5-1
     SECTION 5.01.   Events of Default....................................  5-1
     SECTION 5.02.   Rights upon Event of Default.........................  5-2
     SECTION 5.03.   Collection of Indebtedness and Suits for Enforcement
                     by Trustee; Authority of Trustee.....................  5-2
     SECTION 5.04.   Remedies.............................................  5-4
     SECTION 5.05.   Optional Preservation of the Receivables.............  5-6
     SECTION 5.06.   Priorities...........................................  5-6
     SECTION 5.07.   Limitation of Suits..................................  5-7
     SECTION 5.08.   Unconditional Rights of Noteholders To Receive
                     Principal and Interest...............................  5-7
     SECTION 5.09.   Restoration of Rights and Remedies...................  5-8
     SECTION 5.10.   Right and Remedies Cumulative........................  5-8
     SECTION 5.11.   Delay or Omission Not a Waiver.......................  5-8
     SECTION 5.12.   Control by Controlling Noteholders...................  5-8
     SECTION 5.13.   Waiver of Past Default...............................  5-9
     SECTION 5.14.   Undertaking for Costs................................  5-9
     SECTION 5.15.   Waiver of Stay or Extension Laws.....................  5-9
     SECTION 5.16.   Action on Notes......................................  5-9
     SECTION 5.17.   Performance and Enforcement of Certain Obligations... 5-10

ARTICLE VI   THE TRUSTEE..................................................  6-1
     SECTION 6.01.   Duties of Trustee....................................  6-1
     SECTION 6.02.   Rights of Trustee....................................  6-2
     SECTION 6.03.   Individual Rights of Trustee.........................  6-3
     SECTION 6.04.   Trustee's Disclaimer.................................  6-3
     SECTION 6.05.   Notice of Defaults...................................  6-4
     SECTION 6.06.   Reports by Trustee to Holders........................  6-4
     SECTION 6.07.   Compensation and Indemnity...........................  6-4
     SECTION 6.08.   Replacement of Trustee...............................  6-4
     SECTION 6.09.   Successor Trustee by Merger..........................  6-6
     SECTION 6.10.   Appointment of Co-Trustee or Separate Trustee........  6-6
     SECTION 6.11.   Eligibility; Disqualification........................  6-7
     SECTION 6.12.   Preferential Collection of Claims Against Issuer.....  6-7
     SECTION 6.13.   Trustee to Cooperate.................................  6-7
     SECTION 6.14.   Sale and Servicing Agreement.........................  6-8
     SECTION 6.15.   Trustee Advances.....................................  6-8
</TABLE>
                                     -ii-
<PAGE>

<TABLE>
<S>                                                                                             <C>
ARTICLE VII    NOTEHOLDERS' LISTS AND REPORTS....................................................    7-1
     SECTION 7.01.   Issuer To Furnish Trustee Names and Addresses to Noteholders................    7-1
     SECTION 7.02.   Preservation of Information; Communications to Noteholders..................    7-1
     SECTION 7.03.   Reports by Issuer...........................................................    7-1
     SECTION 7.04.   Reports by Trustee..........................................................    7-2

ARTICLE VIII   ACCOUNTS, DISBURSEMENTS AND RELEASES..............................................    8-1
     SECTION 8.01.   Collection of Money.........................................................    8-1
     SECTION 8.02.   Trust Accounts..............................................................    8-1
     SECTION 8.03.   General Provisions Regarding Accounts.......................................    8-3

ARTICLE IX     SUPPLEMENTAL INDENTURES...........................................................    9-1
     SECTION 9.01.   Supplemental Indentures Without Consent of Noteholders......................    9-1
     SECTION 9.02.   Supplemental Indentures With Consent of Noteholders.........................    9-2
     SECTION 9.03.   Execution of Supplemental Indentures........................................    9-3
     SECTION 9.04.   Effect of Supplemental Indenture............................................    9-3
     SECTION 9.05.   Conformity With Trust Indenture Act.........................................    9-4
     SECTION 9.06.   Reference in Notes to Supplemental Indentures...............................    9-4

ARTICLE X      REDEMPTION OF NOTES...............................................................   10-1
     SECTION 10.01.  Redemption..................................................................   10-1
     SECTION 10.02.  Form of Redemption Notice...................................................   10-1
     SECTION 10.03.  Notes Payable on Redemption Date............................................   10-2
     SECTION 10.04.  Contract Pool Auction.......................................................   10-2

ARTICLE XI     MISCELLANEOUS.....................................................................   11-1
     SECTION 11.01.  Compliance Certificates and Opinions, etc...................................   11-1
     SECTION 11.02.  Form of Documents Delivered to Trustee......................................   11-2
     SECTION 11.03.  Acts of Noteholders.........................................................   11-3
     SECTION 11.04.  Notices, etc., to Trustee, Issuer and Rating Agencies.......................   11-4
     SECTION 11.05.  Notices to Noteholders; Waiver..............................................   11-4
     SECTION 11.06.  Alternate Payment and Notice Provisions.....................................   11-5
     SECTION 11.07.  Conflict with Trust Indenture Act...........................................   11-5
     SECTION 11.08.  Effect of Headings and Table of Contents....................................   11-5
     SECTION 11.09.  Successors and Assigns......................................................   11-5
     SECTION 11.10.  Severability................................................................   11-5
     SECTION 11.11.  Benefits of Indenture.......................................................   11-5
     SECTION 11.12.  Legal Holidays..............................................................   11-6
     SECTION 11.13.  Governing Law...............................................................   11-6
     SECTION 11.14.  Counterparts................................................................   11-6
     SECTION 11.15.  Recording of Indenture......................................................   11-6
     SECTION 11.16.  Trust Obligation............................................................   11-6
     SECTION 11.17.  No Petition.................................................................   11-6
     SECTION 11.18.  Inspection..................................................................   11-7
     SECTION 11.19.  Limitation of Liability.....................................................   11-7
</TABLE>

                                     -iii-
<PAGE>

Exhibit A   --  Schedule of Contracts
Exhibit B   --  Form of Depository Agreement
Exhibit C   --  Form of Class A-1 Note
Exhibit E   --  Form of Class A-2 Note
Exhibit F   --  Form of Class M-1 Note
Exhibit G   --  Form of Class M-2 Note
Exhibit H   --  Form of Class B Note

                                      -iv-
<PAGE>

     INDENTURE, dated as of June 1, 2000, between Conseco Finance Recreational
Enthusiast Consumer Trust 2000-A, a Delaware business trust (the "Issuer"), and
U.S. Bank Trust National Association, a national banking association organized
and existing under the laws of the United States of America, in its capacity as
trustee (the "Trustee") and not in its individual capacity.

     Each party agrees as follows for the benefit of the other party and for the
equal and ratable benefit of the Holders of the Issuer's Class A-1 Asset-Backed
Notes (the "Class A-1 Notes"), Class A-2 Asset-Backed Notes (the "Class A-2
Notes"), Class A-3 Asset-Backed Notes (the "Class A-3 Notes"), Class M-1 Asset-
Backed Notes (the "Class M-1 Notes"), Class M-2 Asset-Backed Notes (the "Class
M-2 Notes") and the Class B Asset-Backed Notes (the "Class B Notes") which such
notes are referred to collectively as the "Notes":

     As security for the payment and performance by the Issuer of its
obligations under this Indenture and the Notes, the Issuer hereby grants,
transfers and assigns to the Trustee at the Closing Date, on behalf of and for
the benefit of the Noteholders, without recourse, to secure the payment and
performance of the Secured Obligations, the following.

                             GRANTING CLAUSE FIRST

     All of the Issuer's right, title and interest, whether now owned or
hereafter acquired, whether now existing or hereafter arising and wherever
located, in and to: (a) the Contracts (including but not limited to the
Collateral Security), and all moneys payable thereon or in respect to the
Contracts, including any liquidation proceeds therefrom but excluding payments
due on the Contracts prior to the Cutoff Date; (b) the Insurance Policies on any
Products securing a Contract for the benefit of the creditor of such Contract
and all blanket insurance policies to the extent they relate to the Contracts;
(c) the Errors and Omissions Protection Policy as such policy relates to the
Contracts; (d) all items contained in the Contract Files; (e) the Trust Accounts
(other than the Certificate Distribution Account) and all funds on deposit
therein from time to time, and all investments and proceeds thereof (including
all income thereon); the Transfer Agreement and the Sale and Servicing
Agreement, and any Subsequent Transfer Agreements and Subsequent Transfer
Instruments; and (g) all present and future claims, demands, causes and choses
in action in respect of any or all of the foregoing and all payments on or under
and all proceeds and products of every kind and nature whatsoever in respect of
any or all of the foregoing, including all proceeds of the conversion, voluntary
or involuntary, into cash or other liquid property, all cash proceeds, accounts,
accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit
accounts, insurance proceeds, condemnation awards, rights to payment of any and
every kind and other forms of obligations and Contracts, instruments and other
property which at any time constitute all or part of or are included in the
proceeds of any of the foregoing (collectively, the "Indenture Collateral").

                            GRANTING CLAUSE SECOND

          All other property of every name and nature from time to time
hereafter by delivery or by writing of any kind conveyed, pledged, assigned or
transferred, as and for additional security hereunder by the Issuer or by anyone
in its behalf or with its written consent to
<PAGE>

the Trustee, which is hereby authorized to receive any and all such property at
any and all times and to hold and apply the same subject to the terms hereof.

     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, all as provided in this Indenture.

     The Trustee, for the benefit of the Holders of the Notes, acknowledges such
Grant. The Trustee on behalf of the Holders of the Notes 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.
<PAGE>

                                   ARTICLE I

                  DEFINITIONS AND INCORPORATION BY REFERENCE

     SECTION 1.01.  Definitions.  Except as otherwise specified herein or as the
                    -----------
context may otherwise require, the following terms have the respective meanings
set forth below for all purposes of this Indenture.  Except as otherwise defined
herein, all terms defined in the Sale and Servicing Agreement or the Trust
Agreement have the meanings given them in such Related Document.

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

     "Administration Agreement" means the Administration Agreement, dated as of
      ------------------------
June 1, 2000, among the Administrator, the Issuer and the Trustee, as the same
may be amended and supplemented from time to time.

     "Administrator" means Conseco Finance Servicing Corporation, a Delaware
      -------------
corporation, or any successor Administrator under the Administration Agreement.

     "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 terms "controlling" and
"controlled" have meanings correlative to the foregoing.

     "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 and who is identified on the list of Authorized Officers delivered
by the Owner Trustee to the Trustee on the Closing Date (as such list may be
modified or supplemented from time to time thereafter).

     "Book-Entry Note" means any Note registered in the name of the Depository
      ---------------
or its nominee, ownership of which is reflected on the books of the Depository
or on the books of a person maintaining an account with such Depository
(directly or as an indirect participant in accordance with the rules of such
Depository).

     "Business Day" means any day other than a Saturday, Sunday, legal holiday
      ------------
or other day on which commercial banking institutions in Minneapolis, Minnesota,
New York, New York, Wilmington, Delaware or any other location of any successor
Servicer, successor Owner Trustee or successor Trustee are authorized or
obligated by law, executive order or governmental decree to remain closed.

     "Certificate of Trust" means the Certificate of Trust of the Issuer
      --------------------
substantially in the form of Exhibit A to the Trust Agreement.

                                     1-1
<PAGE>

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

     "Class A-1 Notes" means the Class A-1 Asset-Backed Notes substantially in
      ---------------
the form of Exhibit C.

     "Class A-2 Notes" means the Class A-2 Asset-Backed Notes substantially in
      ---------------
the form of Exhibit D.

     "Class A-3 Notes" means the Class A-3 Asset-Backed Notes substantially in
      ---------------
the form of Exhibit E.

     "Class M Notes" means the Class M-1 Notes and the Class M-2 Notes.
      -------------

     "Class M-1 Notes" means the Class M-1 Asset-Backed Notes substantially in
      ---------------
the form of Exhibit F.

     "Class M-2 Notes" means the Class M-2 Asset-Backed Notes substantially in
      ---------------
the form of Exhibit G.

     "Class B Notes" means the Class B Asset-Backed Notes substantially in the
      -------------
form of Exhibit H.

     "Closing Date" means June 29, 2000.
      ------------

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

     "Collection Account" means the account established and maintained pursuant
      ------------------
to Section 6.01(a) of the Sale and Servicing Agreement.

     "Controlling Noteholders" means the holders of (i) a majority in
      -----------------------
outstanding principal amount of Class A Notes, or (ii) if all of the Class A
Notes have been paid in full, a majority in outstanding principal amount of the
Class M Notes, or (iii) if all of the Class A Notes and Class M Notes have been
paid in full, a majority in outstanding principal amount of the Class B Notes.

     "Corporate Trust Office" means the principal office of the Trustee at which
      ----------------------
at any particular time its corporate trust business shall be administered which
office at date of the execution of this Indenture is located at 180 East Fifth
Street, St. Paul, Minnesota  55101, Attention:  Corporate Trust Administration,
Structured Finance; or at such other address as the Trustee may designate from
time to time by notice to the Noteholders and the Issuer, or the principal
corporate trust office of any successor Trustee (and such successor Trustee will
notify the Noteholders and the Issuer of its address).

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

                                     1-2
<PAGE>

     "Depository" means initially, The Depository Trust Company, the nominee of
      ----------
which is Cede & Co., as the registered Holder of $170,800,000 in aggregate
principal amount of the Class A-1 Notes, $25,000,000 in aggregate principal
amount of the Class A-2 Notes, $36,600,000 in aggregate principal amount of the
Class A-3 Notes, $14,000,000 in aggregate principal amount of the Class M-1
Notes, $11,200,000 in aggregate principal amount of the Class M-2 Notes and
$16,800,000 in aggregate principal amount of the Class B Notes, as of the
Closing Date, and any permitted successor depository.  The Depository shall at
all times be a "clearing corporation" as defined in the Uniform Commercial Code
of the State of New York.

     "Depository Agreement" means the agreement among the Issuer, the Trustee,
      --------------------
the Administrator, and The Depository Trust Company, as the initial Depository,
dated as of the Closing Date, relating to the Notes, substantially in the form
of Exhibit B.

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

     "Distribution Date" means the fifteenth day of each calendar month during
      -----------------
the term of this Indenture or if such day is not a Business Day, the next
succeeding Business Day, commencing in July 2000.

     "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, any Responsible Officer, the
Secretary or the Treasurer of such corporation; and with respect to any
partnership, any general partner thereof.

     "Final Scheduled Distribution Date" means with respect to each Class of
      ---------------------------------
Notes, the Distribution Date occurring in the month and year indicated:  Class
A-1 - July 2008; Class A-2 -December 2010; Class A-3 - November 2020; Class M-1
- November 2020; Class M-2 -November 2020; and Class B - November 2020.

     "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 Indenture 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 Indenture 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

                                     1-3
<PAGE>

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.

     "Indebtedness" means, with respect to any Person at any time, (a)
      ------------
indebtedness or liability of such Person for borrowed money whether or not
evidenced by bonds, debentures, notes or other instruments, or for the deferred
purchase price of property or services (including trade obligations); (b)
obligations of such Person as lessee under leases which should have been or
should be, in accordance with generally accepted accounting principles, recorded
as capital leases; (c) current liabilities of such Person in respect of unfunded
vested benefits under plans covered by Title IV of ERISA; (d) obligations issued
for or liabilities incurred on the account of such Person; (e) obligations or
liabilities of such Person arising under acceptance facilities; (f) obligations
of such Person under any guarantees, endorsements (other than for collection or
deposit in the ordinary course of business) and other contingent obligations to
purchase, to provide funds for payment, to supply funds to invest in any Person
or otherwise to assure a creditor against loss; (g) obligations of such Person
secured by any lien on property or assets of such Person, whether or not the
obligations have been assumed by such Person; or (h) obligations of such Person
under any interest rate or currency exchange agreement.

     "Indenture" means this Indenture as amended or supplemented from time to
      ---------
time.

     "Indenture Collateral" has the meaning specified in the Granting Clause
      --------------------
First of this Indenture.

     "Independent" means, when used with respect to any specified Person, that
      -----------
the Person (a) is in fact independent of the Issuer, any other obligor upon the
Notes, the Depositor, the Servicer, the Seller and any Affiliate of any of the
foregoing Persons, (b) does not have any direct financial interest or any
material indirect financial interest in the Issuer, any such other obligor, the
Depositor, the Servicer, the Seller or any Affiliate of any of the foregoing
Persons and (c) is not connected with the Issuer, any such other obligor, the
Depositor, the Servicer, the Seller or any Affiliate of any of the foregoing
Persons as an officer, employee, promoter, underwriter, trustee, partner,
director or person performing similar functions.

     "Independent Certificate" means a certificate or opinion to be delivered to
      -----------------------
the Trustee under the circumstances described in, and otherwise complying with,
the applicable requirements of Section 11.01, made by an Independent appraiser
or other expert appointed by an Issuer Order and approved by the 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.

     "Insolvency Event" means, with respect to any Person, (i) an involuntary
      ----------------
case or other proceeding is commenced in a court having jurisdiction in the
premises in respect of such Person or any substantial part of its property under
any applicable Insolvency Law now or hereafter in effect, seeking the
appointment of a receiver, liquidator, assignee, custodian, trustee,
sequestrator

                                     1-4
<PAGE>

or similar official for such Person or for any substantial part of its property,
or the ordering of the winding-up or liquidation of such Person's affairs, and
either (A) an order for relief is entered in such case or other proceeding or
(B) such involuntary case or other proceeding shall remain undismissed and
unstayed for a period of 60 consecutive days or (ii) the commencement by such
Person of a voluntary case under any applicable Insolvency 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 any
substantial part of its property, or the making by such Person of any general
assignment for the benefit of creditors, or the failure by such Person generally
to pay its debts as such debts become due, or the taking of action by such
Person in furtherance of any of the foregoing.

     "Insolvency Laws" means the Federal Bankruptcy Code, as amended (Title 11
      ---------------
of the United States Code) and all other applicable liquidation,
conservatorship, bankruptcy, moratorium, rearrangement, receivership,
insolvency, reorganization, suspension of payments or similar debtor relief laws
from time to time in effect affecting the rights of creditors generally.

     "Interest Rate" means the Class A-1 Interest Rate, or the Class A-2
      -------------
Interest Rate, the Class A-3 Interest Rate, or the Class M-1 Interest Rate, or
the Class M-2 Interest Rate or the Class B Interest Rate, as applicable.

     "Issuer" means the party named as such in this Indenture 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" means a written order or request signed
      ------------       --------------
in the name of the Issuer by any one of its Authorized Officers and delivered to
the Trustee.

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

     "Note Distribution Account" means the account designated as such,
      -------------------------
established and maintained pursuant to Section 6.01(b) of the Sale and Servicing
Agreement.

     "Note Owner" means, with respect to a Book-Entry Note, the Person who is
      ----------
the owner of such Book-Entry Note, as reflected on the books of the Depository,
or on the books of a Person maintaining an account with such Depository
(directly as a Depository participant or as an indirect participant, in each
case in accordance with the rules of such Depository) and with respect to any
Definitive Notes, the Holder.

     "Note Register" and "Note Registrar" have the respective meanings specified
      -------------       --------------
in Section 2.04.

     "Officers' 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 Trustee. Unless otherwise specified, any reference in this

                                     1-5
<PAGE>

Indenture to an Officers' Certificate shall be to an Officers' Certificate of
any Authorized Officer of the Issuer.

     "Opinion of Counsel" means one or more written opinions of counsel who may,
      ------------------
except as otherwise expressly provided in this Indenture, be employees of or
counsel to the Issuer and who shall be satisfactory to the Trustee and which
shall comply with any applicable requirements of Section 11.01, and shall be in
form and substance satisfactory to the Trustee.

     "Original Class A-1 Principal Balance" means $170,800,000.
      ------------------------------------

     "Original Class A-2 Principal Balance" means $25,000,000.
      ------------------------------------

     "Original Class A-3 Principal Balance" means $36,600,000.
      ------------------------------------

     "Original Class M-1 Principal Balance" means $14,000,000.
      ------------------------------------

     "Original Class M-2 Principal Balance" means $11,200,000.
      ------------------------------------

     "Original Class B Principal Balance" means $16,800,000.
      ----------------------------------

     "Original Note Principal Balance" means the sum of the Original Class A-1
      -------------------------------
Principal Balance Original Class A-2 Principal Balance, Original Class A-3
Principal Balance, Original Class M-1 Principal Balance, Original Class M-2
Principal Balance and Original Class B Principal Balance.

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

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

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

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

provided, however, that in determining whether the Holders of the requisite
--------  -------
Outstanding Amount of the Notes have given any request, demand, authorization,
direction, notice, consent or waiver hereunder or under any Related Document,
Notes owned by the Issuer, any other obligor upon the Notes, the Depositor, the
Servicer, 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

                                     1-6
<PAGE>

Trustee shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Notes that the 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 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 Depositor, the Servicer, the Seller or any Affiliate of any of the
foregoing Persons.

     "Outstanding Amount" means the aggregate principal amount of all Notes, or
      ------------------
class of Notes, as applicable, Outstanding at the date of determination.

     "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 Trustee or any other Person that meets the
      ------------
eligibility standards for the Trustee specified in Section 6.11 and is
authorized by the Issuer to make the distributions from the Note Distribution
Account, including payment of principal of or interest on the Notes on behalf of
the Issuer.

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

     "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.

     "Rating Agency" means each of Standard & Poor's and Moody's, so long as
      -------------
such Persons maintain a rating on the Notes; and if either Standard & Poor's or
Moody's no longer maintains a rating on the Notes, such other nationally
recognized statistical rating organization selected by the Seller.

     "Rating Agency Condition" means, with respect to any action, that each
      -----------------------
Rating Agency shall have been given 10 days (or such shorter period as is
acceptable to each Rating Agency) prior notice thereof and that each of the
Rating Agencies shall have notified the Servicer, the Trustee, the Owner Trustee
or the Issuer in writing that such action will not result in a reduction or
withdrawal of the then current rating of the Notes.

                                      1-7
<PAGE>

     "Record Date" means, with respect to a Distribution Date or Redemption
      -----------
Date, the close of business on the last Business Day immediately preceding such
Distribution Date or Redemption Date.

     "Redemption Date" means in the case of a redemption of the Notes pursuant
      ---------------
to Section 10.01, or the Distribution Date specified by the Servicer or the
Issuer pursuant to Section 10.01(a).

     "Redemption Price" means an amount equal to the principal amount of the
      ----------------
Notes redeemed plus accrued and unpaid interest on the principal amount of each
class of Notes at the respective Interest Rate for each such class of Notes
being so redeemed to but excluding the Redemption Date.

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

     "Related Documents" means the Transfer Agreement, the Trust Agreement, the
      -----------------
Certificates, the Notes, the Sale and Servicing Agreement, the Administration
Agreement, the Depository Agreement and the Underwriting Agreement and related
Terms Agreement, between the Company and the Underwriters of the Notes. The
Related Documents executed by any party are referred to herein as "such party's
Related Documents," "its Related Documents" or by a similar expression.

     "Responsible Officer" means, with respect to the Trustee, any officer of
      ------------------
the Trustee assigned by the Trustee to administer its corporate trust affairs
relating to the Trust Estate.

     "Sale and Servicing Agreement" means the Sale and Servicing Agreement,
      ----------------------------
dated as of June 1, 2000, among the Issuer, the Seller, the Originator and the
Servicer.

     "Schedule of Contracts" means the listing of the Contracts set forth in
      ---------------------
Exhibit A.

     "Secured Obligations" means all amounts and obligations which the Issuer
      -------------------
may at any time owe to or on behalf of the Trustee for the benefit of the
Noteholders under this Indenture or the Notes.

     "State" means any one of the 50 states of the United States of America or
      -----
the District of Columbia.

     "Termination Date" means the date on which the Trustee shall have received
      ----------------
payment and performance of all Secured Obligations.

     "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 Noteholders (including, without limitation, the
Indenture Collateral Granted to the Trustee), including all proceeds thereof.

                                      1-8
<PAGE>

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

     "Trustee" means U.S. Bank Trust National Association, a national banking
      -------
association organized under the laws of the United States, as Trustee under this
Indenture, or any successor Trustee under this Indenture.

     "UCC" means, unless the context otherwise requires, the Uniform Commercial
      ---
Code, as in effect in the relevant jurisdiction, as amended from time to time.

     SECTION 1.02.  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 Trustee.

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

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

     SECTION 1.03.  Rules of Construction. Unless otherwise specified:
                    ---------------------

          (i)   a term has the meaning assigned to it;

          (ii)  an accounting term not otherwise defined has the meaning
     assigned to it in accordance with generally accepted accounting principles
     as in effect from time to time;

          (iii) "or" is not exclusive;

          (iv)  "including" means including without limitation;

          (v)   words in the singular include the plural and words in the plural
     include the singular; and

                                      1-9
<PAGE>

     (vi) references to Sections, Subsections, Schedules and Exhibits shall
refer to such portions of this Indenture.

                                    1-10
<PAGE>

                                  ARTICLE II

                                   THE NOTES

     SECTION 2.01.  Form. The Class A-1 Notes, the Class A-2 Notes, the Class
                    ----
A-3 Notes, the Class M-1 Notes, the Class M-2 Notes and the Class B Notes, in
each case together with the Trustee's certificate of authentication, shall be in
substantially the forms set forth in Exhibits C, D, E, F, G and H, respectively,
with such appropriate insertions, omissions, substitutions and other variations
as are required or permitted by this Indenture and may have such letters,
numbers or other marks of identification and such legends or endorsements placed
thereon as may, consistently herewith, be determined by the officers executing
such Notes, as evidenced by their execution of the Notes. Any portion of the
text of any Note may be set forth on the reverse thereof, with an appropriate
reference thereto on the face of the Note.

     The Notes shall be typewritten, printed, lithographed or engraved or
produced by any combination of these methods 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 Exhibits C, D, E, F, G and H 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 Trustee shall, upon receipt of an Issuer Order, authenticate and
deliver Class A-1 Notes in an aggregate principal amount of $170,800,000, Class
A-2 Notes in an aggregate principal amount of $25,000,000, Class A-3 Notes in an
aggregate principal amount of $36,600,000, Class M-1 Notes in an aggregate
principal amount of $14,000,000, Class M-2 Notes in an aggregate principal
amount of $11,200,000 and Class B Notes in an aggregate principal amount of
$16,800,000. The aggregate principal amount of Class A-1 Notes, Class A-2 Notes,
Class A-3 Notes, Class M-1 Notes, Class M-2 Notes and Class B Notes outstanding
at any time may not exceed that amount except as provided in Section 2.05.

     Each Note shall be dated the date of its authentication. The Notes shall be
issuable as registered Notes in the minimum denomination of $1,000 and in
integral multiples thereof.

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

                                      2-1
<PAGE>

     SECTION 2.03.  Temporary Notes.  Pending the preparation of Definitive
                    ---------------
Notes, the Issuer may execute, and upon receipt of an Issuer Order the Trustee
shall authenticate and deliver, temporary Notes which are printed, lithographed,
typewritten, mimeographed or otherwise produced, of the tenor of the Definitive
Notes in lieu of which they are issued and with such variations 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, the Issuer shall execute and
the Trustee shall authenticate and deliver in exchange therefor a like principal
amount of Definitive Notes of authorized denominations. Until so exchanged, the
temporary Notes shall in all respects be entitled to the same benefits under
this Indenture as Definitive Notes.

     SECTION 2.04.  Registration; Registration of Transfer and Exchange. The
                    ---------------------------------------------------
Issuer shall cause to be kept a register (the "Note Register") in which, subject
to such reasonable regulations as it may prescribe, the Issuer shall provide for
the registration of Notes and the registration of transfers of Notes. The
Trustee shall be "Note Registrar" for the purpose of registering Notes and
transfers of Notes as herein provided. Upon any resignation of any Note
Registrar, the Issuer shall promptly appoint a successor or, if it elects not to
make such an appointment, assume the duties of Note Registrar.

     If a Person other than the Trustee is appointed by the Issuer as Note
Registrar, the Issuer will give the 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 Trustee shall have the right to inspect
the Note Register at all reasonable times and to obtain copies thereof, and the
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.

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

     At the option of the Holder, Notes may be exchanged for other Notes 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 Trustee shall
authenticate and the Noteholder shall obtain from the Trustee, the Notes which
the Noteholder making the exchange is entitled to receive.

                                      2-2
<PAGE>

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

     Every Note presented or surrendered for registration of transfer or
exchange shall be duly endorsed by, or be accompanied by a written instrument of
transfer in form satisfactory to the Trustee duly executed by, the Holder
thereof or such Holder's attorney duly authorized in writing, with such
signature guaranteed by a commercial bank or trust company located, or having a
correspondent located, in The City of New York or the city in which the
Corporate Trust Office is located, or by a member firm of a national securities
exchange, and such other documents as the Trustee may require.

     No service charge shall be made to a Holder for any registration of
transfer or exchange of Notes, but the Issuer or the Trustee may require payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any registration of transfer or exchange of Notes,
other than exchanges pursuant to Section 2.03 or 9.06 not involving any
transfer.

     The preceding provisions of this section notwithstanding, the Issuer shall
not be required to make and the Note Registrar need not register transfers or
exchanges of Notes selected for redemption or of any Note for a period of 15
days preceding the due date for any payment with respect to the Note.

     SECTION 2.05.  Mutilated, Destroyed, Lost or Stolen Notes.  If (i) any
                    ------------------------------------------
mutilated Note is surrendered to the Trustee, or the Trustee receives evidence
to its satisfaction of the destruction, loss or theft of any Note, and (ii)
there is delivered to the Trustee and such security or indemnity as may be
required by them to hold the Issuer and the Trustee harmless, then, in the
absence of notice to the Issuer, the Note Registrar or the Trustee that such
Note has been acquired by a bona fide purchaser, the Issuer shall execute and
upon its request the Trustee shall authenticate and deliver, in exchange for or
in lieu of any such mutilated, destroyed, lost or stolen Note, a replacement
Note; provided, however, that if any such destroyed, lost or stolen Note, but
      --------  -------
not a mutilated Note, shall have become or within seven days shall be due and
payable, or shall have been called for redemption, instead of issuing a
replacement Note, the Issuer may pay such destroyed, lost or stolen Note when so
due or payable or upon the Redemption Date without surrender thereof.  If, after
the delivery of such replacement Note or payment of a destroyed, lost or stolen
Note pursuant to the proviso to the preceding sentence, a bona fide purchaser of
the original Note in lieu of which such replacement Note was issued presents for
payment such original Note, the Issuer and the 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
bona fide 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 Trustee in connection therewith.

     Upon the issuance of any replacement Note under this Section, the Issuer or
the Trustee may require the payment by the Holder of such Note of a sum
sufficient to cover any tax or other

                                2-3
<PAGE>

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

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

     The provisions of this Section 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.  Person Deemed Owner. Prior to due presentment for
                    -------------------
registration of transfer of any Note, the Issuer, the Trustee and any agent of
the Issuer or the Trustee may treat the Person in whose name any Note is
registered (as of the day of determination) as the owner of such Note for the
purpose of receiving payments of principal of and interest, if any, on such Note
and for all other purposes whatsoever, whether or not such Note be overdue, and
none of the Issuer, the Trustee nor any agent of the Issuer or the Trustee shall
be affected by notice to the contrary.

     SECTION 2.07.  Payment of Principal and Interest; Defaulted Interest.
                    -----------------------------------------------------

     (a)  The Notes shall accrue interest as provided in the forms of the Class
A-1 Note, the Class A-2 Note, the Class A-3 Note, the Class M-1 Note, the Class
M-2 Note and the Class B Note set forth in Exhibits C, D, E, F, G and H,
respectively, and such interest shall be payable on each Distribution Date as
specified therein, subject to Section 3.01. Any installment of interest or
principal, if any, payable on any Note which 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 check mailed first-class, postage prepaid to such
Person's address as it appears on the Note Register on such Record Date, except
that, unless Definitive Notes have been issued pursuant to Section 2.11, with
respect to Notes registered on the Record Date in the name of the nominee of the
Depository, payment will be made by wire transfer in immediately available funds
to the account designated by such nominee and except for (i) the final
installment of principal payable with respect to such Note on a Distribution
Date and (ii) the Redemption Price for any Note called for redemption pursuant
to Section 10.01(a), which shall be payable as provided in subsection (b) below.
Notwithstanding the above, any holder of 5% or more of the Outstanding Amount of
a Class of Notes may request payment of interest and principal by wire transfer
in immediately available funds to the account of such holder subject to the
exceptions contained in clauses (i) and (ii) of the immediately preceding
sentence. The funds represented by any such checks returned undelivered shall be
held in accordance with Section 3.03.

     (b)  The principal of each Note shall be payable in installments on each
Distribution Date as provided in the forms of the Class A-1 Note, the Class A-2
Note, the Class A-3 Note, the Class M-1 Note, the Class M-2 Note and the Class B
Note set forth in Exhibits C, D, E, F, G and

                                      2-4
<PAGE>

H, respectively. Notwithstanding the foregoing, the entire unpaid principal
amount of the Notes shall be due and payable, if not previously paid, on the
date on which an Event of Default shall have occurred and be continuing and the
Trustee or the Controlling Noteholders have declared the Notes to be immediately
due and payable in the manner provided in Section 5.02. All principal payments
on a Class of Notes shall be made pro rata to the Noteholders of such Class
entitled thereto. The 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 Issuer expects that the final installment of
principal of and interest on such Note will be paid. Such notice shall be mailed
no later than five days prior to such final Distribution Date and 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. Notices in connection with
redemptions of Notes shall be mailed to Noteholders as provided in Section
10.02.

     SECTION 2.08.  Cancellation.  All Notes surrendered for payment,
                    ------------
registration of transfer, exchange or redemption shall, if surrendered to any
Person other than the Trustee, be delivered to the Trustee and shall be promptly
canceled by the Trustee. The Issuer may at any time deliver to the 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 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 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 Trustee.

     SECTION 2.09.  Book-Entry Notes.  The Notes, upon original issuance, will
                    ----------------
be issued in the form of a typewritten Note or Notes representing the Book-Entry
Notes, to be delivered to The Depository Trust Company, the initial Depository
(or the Trustee as custodian on its behalf), by or on behalf of the Issuer. Each
such Note shall initially be registered on the Note Register in the name of Cede
& Co., the nominee of the initial Depository, and no Note Owner will receive a
Definitive Note representing such Note Owner's interest in such Note, except as
provided in Section 2.11. Unless and until definitive, fully registered Notes
(the "Definitive Notes") have been issued to Note Owners pursuant to Section
2.11:

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

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

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

                                      2-5
<PAGE>

          (iv) the rights of Note Owners shall be exercised only through the
     Depository and shall be limited to those established by law and agreements
     between such Note Owners and the Depository and/or the Depository
     Participants. Pursuant to the Depository Agreement, unless and until
     Definitive Notes are issued pursuant to Section 2.11, the Depository will
     make book-entry transfers among the Depository Participants and receive and
     transmit payments of principal of and interest on the Notes to such
     Depository Participants; and

          (v)  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, the Depository
     shall be deemed to represent such percentage only to the extent that it has
     received instructions to such effect from Note Owners and/or Depository
     Participants owning or representing, respectively, such required percentage
     of the beneficial interest in the Notes and has delivered such instructions
     to the Trustee.

     SECTION 2.10.  Notices to Depository.  Whenever a notice or other
                    ---------------------
communication to the Noteholders is required under this Indenture, unless and
until Definitive Notes shall have been issued to Note Owners pursuant to Section
2.11, the Trustee shall give all such notices and communications specified
herein to be given to Holders of the Notes to the Depository and shall have no
obligation to the Note Owners.

     SECTION 2.11.  Definitive Notes.  If (i) the Administrator advises the
                    ----------------
Trustee in writing that the Depository is no longer willing or able properly to
discharge its responsibilities with respect to the Notes, and the Administrator
is unable to locate a qualified successor, (ii) the Administrator at its option
advises the Trustee in writing that it elects to terminate the book-entry system
through the Depository or (iii) after the occurrence of an Event of Default, the
Controlling Noteholders advises the Depository in writing that the continuation
of a book-entry system through the Depository is no longer in the best interests
of the Note Owners, then the Depository shall notify all Note Owners and the
Trustee of the occurrence of any such event and of the availability of
Definitive Notes to Note Owners requesting the same. Upon surrender to the
Trustee of the Note or Notes representing the Book-Entry Notes by the
Depository, accompanied by registration instructions, the Issuer shall execute
and the Trustee shall authenticate the Definitive Notes in accordance with the
instructions of the Depository. None of the Issuer, the Note Registrar or the
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 Trustee shall recognize the Holders
of the Definitive Notes as Noteholders.

                                      2-6
<PAGE>

                                  ARTICLE III

                                   COVENANTS

     SECTION 3.01.  Payment of Principal, Interest and Premium.  The Issuer will
                    ------------------------------------------
duly and punctually pay the principal and interest on the Notes in accordance
with the terms of the Notes and this Indenture. Without limiting the foregoing,
the Issuer will cause to be distributed all amounts on deposit in the Note
Distribution Account on a Distribution Date in accordance with Section 8.02(c).
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 St. Paul, Minnesota, 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 Trustee to serve as its agent for the foregoing
purposes. The Issuer will give prompt written notice to the 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 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 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
                    --------------------------------------
Section 8.02, all payments of amounts due and payable with respect to any Notes
that are to be made pursuant to Section 8.02(c) from amounts withdrawn from the
Note Distribution Account shall be made on behalf of the Issuer by the Trustee
or by another Paying Agent, and no amounts so withdrawn from the Note
Distribution Account for payment of Notes shall be paid over to the Issuer.

     On or before each Distribution Date or Redemption Date, the Issuer shall
deposit or cause to be deposited in the Note Distribution Account an aggregate
sum sufficient to pay the amounts then becoming due, such sum to be held in
trust for the benefit of the Persons entitled thereto and (unless the Paying
Agent is the Trustee) shall promptly notify the Trustee of its action or failure
so to act.

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

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

                                      3-1
<PAGE>

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

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

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

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

     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 Trustee all sums held in trust by such Paying
Agent, such sums to be held by the 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 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 Trustee or any Paying Agent in trust for the payment of any amount due
with respect to any Note and remaining unclaimed for two years after such amount
has become due and payable shall be discharged from such trust and upon Issuer
Request shall be deposited by the Trustee in the Collection Account; 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 Trustee or such
Paying Agent with respect to such trust money shall thereupon cease; provided,
                                                                     --------
however, that the Trustee or such Paying Agent, before being required to make
-------
any such repayment, may at the expense of the Issuer cause to be published once,
in a newspaper published in the English language, customarily published on each
Business Day and of general circulation in The City of New York, notice that
such money remains unclaimed and that, after a date specified therein, which
shall not be less than 30 days from the date of such publication, any unclaimed
balance of such money then remaining will be repaid to or for the account of the
Issuer. The Trustee may also adopt and employ, at the expense of the Issuer, any
other reasonable means of notification of such repayment (including, but not
limited to, mailing notice of such repayment to Holders whose Notes have been
called but have not been surrendered for redemption or whose right to or
interest in moneys due and payable but not claimed is determinable from the
records of the Trustee or of any Paying Agent, at the last address of record for
each such Holder).

     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

                                      3-2
<PAGE>

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 Indenture Collateral and each
other instrument or agreement included in the Trust Estate.

     SECTION 3.05.  Protection of Trust Estate.  The Issuer intends the security
                    --------------------------
interest Granted pursuant to this Indenture in favor of the Trustee to be prior
to all other liens in respect of the Trust Estate, and the Issuer shall take all
actions necessary to obtain and maintain, in favor of the Trustee, for the
benefit of the Noteholders, a first lien on and a first priority, perfected
security interest in the 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, all as prepared by the Servicer and delivered to the Issuer, and
will take such other action necessary or advisable to:

          (i)   grant more effectively all or any portion of the Trust Estate;

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

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

          (iv)  enforce any of the Indenture Collateral;

          (v)   preserve and defend title to the Trust Estate and the rights of
     the Trustee in such Trust Estate against the claims of all persons and
     parties; or

          (vi)  pay all taxes or assessments levied or assessed upon the Trust
     Estate when due.

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

     SECTION 3.06.  Opinions as to Trust Estate.
                    ---------------------------

     (a)  Promptly after the execution and delivery of this Indenture, the
Issuer shall furnish to the Trustee an Opinion of Counsel to the effect that, in
the opinion of such counsel, either (i) all financing statements and
continuation statements have been executed and filed that are necessary to
create and continue the Trustee's first priority perfected security interest in
the collateral for the benefit of the Noteholders, and reciting the details of
such filings or referring to prior Opinions of Counsel in which such details are
given, or (ii) no such action shall be necessary to perfect such security
interest; and

                                      3-3
<PAGE>

     (b) Within 90 days after the beginning of each calendar year beginning with
the first calendar year beginning more than three months after the Cutoff Date,
the Issuer shall furnish to the Trustee an Opinion of Counsel, dated as of a
date during such 90-day period, to the effect that, in the opinion of such
counsel, either (i) all financing statements and continuation statements have
been executed and filed that are necessary to create and continue the Trustee's
first priority perfected security interest in the collateral for the benefit of
the Noteholders, and reciting the details of such filing or referring to prior
Opinions of Counsel in which such details are given, or (ii) no such action
shall be necessary to perfect such security interest.

     SECTION 3.07.  Performance of Obligations; Servicing of Contracts.
                    --------------------------------------------------

     (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 this Indenture, the Sale and Servicing Agreement or such
other instrument or agreement.

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

     (c) The Issuer will punctually perform and observe all of its obligations
and agreements contained in this Indenture, the Related 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 this Indenture and
the Sale and Servicing Agreement in accordance with and within the time periods
provided for herein and therein.

     (d) If the Issuer shall have knowledge of the occurrence of an "Event of
Termination" under the Sale and Servicing Agreement, the Issuer shall promptly
notify the 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 an "Event of Termination" 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 Contracts, the Issuer shall take all reasonable steps
available to it to remedy such failure.

     (e) If the Issuer has given notice of termination to the Servicer of the
Servicer's rights and powers pursuant to Section 7.02 of the Sale and Servicing
Agreement, as promptly as possible thereafter, a successor servicer shall be
appointed in accordance with Section 7.03 of the Sale and Servicing Agreement.

                                      3-4
<PAGE>

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

     (g)  The Issuer agrees that it will not waive timely performance or
observance by the Servicer, the Trustee or the Company of their respective
duties under the Related Documents if the effect thereof would adversely affect
the Holders of the Notes.

     SECTION 3.08.  Negative Covenants.  Until the Termination Date, the Issuer
                    ------------------
     shall not:

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

          (ii)   claim any credit on, or make any deduction from the principal,
     interest or premium 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; or

          (iii)  (A) permit the validity or effectiveness of this Indenture to
     be impaired, or permit the lien in favor of the Trustee created by this
     Indenture to be amended, hypothecated, subordinated, terminated or
     discharged, or permit any Person to be released from any covenants or
     obligations with respect to the Notes under this Indenture except as may be
     expressly permitted hereby, (B) permit any lien, charge, excise, claim,
     security interest, mortgage or other encumbrance (other than the lien in
     favor of the Trustee created by 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 a Financed Product and arising solely as a result of an action or
     omission of the related Obligor), (C) permit the lien in favor of the
     Trustee created by 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) amend, modify or fail to
     comply with the provisions of the Related Documents without the prior
     written consent of the Trustee.

     SECTION 3.09.  Annual Statement as to Compliance.  The Issuer will deliver
                    ---------------------------------
to the Trustee, within 120 days after the end of each fiscal year of the Issuer
(commencing with the fiscal year ended December 31, 2000), an Officers'
Certificate stating, as to the Authorized Officer signing such Officer's
Certificate, that

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

                                      3-5
<PAGE>

          (ii)   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, or, if there has been a default
     in the compliance of any such condition or covenant, specifying each such
     default known to such Authorized Officer and the nature and status thereof.

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

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

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

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

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

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

          (v)    any action as is necessary to maintain the lien and security
     interest created in favor of the Trustee by this Indenture shall have been
     taken;

          (vi)   the Issuer shall have delivered to the Trustee an Officers'
     Certificate and an Opinion of Counsel (which shall describe the actions
     taken as required by clause (a)(v) of this Section 3.10 or that no such
     actions will be taken) each stating that such consolidation or merger and
     such supplemental indenture comply with this Article III and that all
     conditions precedent herein provided for relating to such transaction have
     been compiled with (including any filing required by the Exchange Act); and

          (vii)  the Issuer or the Person (if other than the Issuer) formed by
     or surviving such consolidation or merger has a net worth, immediately
     after such consolidation or merger, that is (a) greater than zero and (b)
     not less than the net worth of the Issuer immediately prior to giving
     effect to such consolidation or merger.

                                      3-6
<PAGE>

     (b)  The Issuer shall not convey or transfer all or substantially all of
its properties or assets, including those included in the Trust Estate, to any
Person (except as expressly permitted by the Indenture or the Sale and Servicing
Agreement), unless

          (i)    the Person that acquires by conveyance or transfer the
     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, (B) expressly assume, by an indenture supplemental
     hereto, executed and delivered to the Trustee, in form and substance
     satisfactory to the Trustee, the due and punctual payment of the principal
     of and interest on all Notes and the performance or observance of every
     agreement and covenant of this Indenture and each Related Document on the
     part of the Issuer to be performed or observed, all as provided herein, (C)
     expressly agree 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 agree to indemnify,
     defend and hold harmless the Issuer against and from any loss, liability or
     expense arising under or related to this Indenture and the Notes and (E)
     expressly agree by means of such supplemental indenture that such Person
     (or if a group of Persons, then one specified Person) shall make all
     filings with the Commission (and any other appropriate Person) required by
     the Exchange Act in connection with the Notes;

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

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

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

          (v)    any action as is necessary to maintain the lien and security
     interest created in favor of the Trustee by this Indenture shall have been
     taken;

          (vi)   the Issuer shall have delivered to the Trustee an Officers'
     Certificate and an Opinion of Counsel (which shall describe the actions
     taken as required by clause (b)(v) of this Section 3.10 or that no such
     actions will be taken) 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); and

          (vii)  the Person acquiring by conveyance or transfer the properties
     or assets of the Issuer has a net worth, immediately after such conveyance
     or transfer, that is (a) greater than zero and (b) not less than the net
     worth of the Issuer immediately prior to giving effect to such conveyance
     or transfer.

                                      3-7
<PAGE>

     SECTION 3.11.  Successor or Transferee.
                    -----------------------

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

     (b)  Upon a conveyance or transfer of all the assets and properties of the
Issuer pursuant to Section 3.10(b), the Issuer 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 immediately upon the delivery of written
notice to the Trustee stating that the Issuer is to be so released.

     SECTION 3.12.  No Other Business.  The Issuer shall not engage in any
                    -----------------
business other than financing, purchasing, owning, selling and managing the
Contracts in the manner contemplated by this Indenture and the Related Documents
and activities incidental thereto.

     SECTION 3.13.  No Borrowing.  The Issuer shall not issue, incur, assume,
                    ------------
guarantee or otherwise become liable, directly or indirectly, for any
Indebtedness except for (i) the Notes and (ii) any other Indebtedness permitted
by or arising under the Related Documents.  The proceeds of the Notes and the
Certificates shall be used exclusively to fund the Issuer's purchase of the
Contracts and the other assets specified in the Sale and Servicing Agreement,
and to pay the Issuer's organizational, transactional and start-up expenses.

     SECTION 3.14.  Servicer's Obligations.  The Issuer shall cause the Servicer
                    ----------------------
to fulfill its obligations under the Sale and Servicing Agreement.

     SECTION 3.15.  Guarantees, Loans, Advances and Other Liabilities.  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 assuming 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, any other interest in, or make any capital
contribution to, any other Person.

     SECTION 3.16.  Capital Expenditures.  The Issuer shall not make any
                    --------------------
expenditure (by long-term or operating lease or otherwise) for capital assets
(either realty or personalty).

     SECTION 3.17.  Restricted Payments.  Except as expressly permitted by this
                    -------------------
Indenture or the Sale and Servicing Agreement, the Issuer shall not, directly or
indirectly, (i) make any distribution (by reduction of capital or otherwise),
whether in cash, property, securities or a combination thereof, to the Owner
Trustee or any owner of a beneficial interest in the Issuer or otherwise with
respect to any ownership or equity interest or security in or of the Issuer or
to the Servicer, (ii) redeem, purchase, retire or otherwise acquire for value
any such ownership or equity interest or security or (iii) set aside or
otherwise segregate any amounts for any such

                                      3-8
<PAGE>

purpose. The Issuer will not, directly or indirectly, make payments to or
distributions from the Collection Account except in accordance with this
Indenture and the Related Documents.

     SECTION 3.18.  Notice of Events of Default.  The Issuer agrees to give the
                    ---------------------------
Trustee and the Rating Agencies prompt written notice of each Default or Event
of Default hereunder and each default on the part of the Servicer or the
Originator of its obligations under the Sale and Servicing Agreement.

     SECTION 3.19.  Further Instruments and Acts.  Upon request of the 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.

     SECTION 3.20.  Compliance with Laws.  The Issuer shall comply with the
                    --------------------
requirements of all applicable laws, the noncompliance with which would,
individually or in the aggregate, materially and adversely affect the ability of
the Issuer to perform its obligations under the Notes, this Indenture or any
Related Document.

     SECTION 3.21.  Amendments of Sale and Servicing Agreement and Trust
                    ----------------------------------------------------
Agreement. The Issuer shall not agree to any amendment to Section 10.03 of the
---------
Sale and Servicing Agreement or Section 11.1 of the Trust Agreement to eliminate
the requirements thereunder that the Trustee or the Holders of the Notes consent
to amendments thereto as provided therein.

     SECTION 3.22.  Removal of Administrator.  So long as any Notes are issued
                    ------------------------
and Outstanding, the Issuer shall not remove the Administrator without cause
unless the Rating Agency Condition shall have been satisfied in connection with
such removal.

     SECTION 3.23.  Income Tax Characterization.  For purposes of federal
                    ---------------------------
income, state and local income and franchise and any other income taxes, the
Issuer will treat the Notes as indebtedness of the Issuer.  The Issuer, by
entering into this Indenture, and each Noteholder, by its acceptance of its 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.

     SECTION 3.24.  Investment Company Act.  The Issuer shall not become an
                    ----------------------
"investment company" or under the "control" of an "investment company" as such
terms are defined in the Investment Company Act of 1940, as amended (or any
successor or amendatory statute), and the rules and regulations thereunder
(taking into account not only the general definition of the term "investment
company" but also any available exceptions to such general definition);
provided, however, that the Issuer shall be in compliance with this Section 3.24
if it shall have obtained an order exempting it from regulation as an
"investment company" so long as it is in compliance with the conditions imposed
in such order.

                                      3-9
<PAGE>

                                  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, interest and premium, if any, thereon, (iv) Sections 3.03, 3.04,
3.05, 3.07, 3.08, 3.10, 3.12, 3.13, 3.17, 3.20, 3.21, 3.23 and 3.24, (v) the
rights, obligations and immunities of the Trustee hereunder (including the
rights of the Trustee under Section 6.07 and the obligations of the Trustee
under Section 4.02) and (vi) the rights of Noteholders as beneficiaries hereof
with respect to the property so deposited with the Trustee payable to all or any
of them, and the Trustee, on demand of and at the expense of the Issuer, shall
execute proper instruments acknowledging satisfaction and discharge of this
Indenture with respect to the Notes, when

     (A)  either

               (1)  all Notes theretofore authenticated and delivered (other
          than (i) Notes that have been destroyed, lost or stolen and that have
          been replaced or paid as provided in Section 2.05 and (ii) Notes for
          whose payment money has theretofore been deposited in trust or
          segregated and held in trust by the Issuer and thereafter repaid to
          the Issuer or discharged from such trust, as provided in Section 3.03)
          have been delivered to the Trustee for cancellation; or

               (2)  all Notes not theretofore delivered to the Trustee for
          cancellation

                    (i)    have become due and payable, or

                    (ii)   will become due and payable at the applicable Final
               Scheduled Distribution Date within one year, or

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

          and the Issuer, in the case of (i), (ii) or (iii) above, has
          irrevocably deposited or caused to be irrevocably deposited with the
          Trustee as part of the Trust Estate cash or direct obligations of or
          obligations guaranteed by the United States of America (which will
          mature prior to the date such amounts are payable), in trust in an
          Eligible Account in the name of the Trustee for such purpose, in an
          amount sufficient to pay and discharge the entire indebtedness on such
          Notes not theretofore delivered to the Trustee for cancellation when
          due to the applicable Final Scheduled Distribution Date or Redemption
          Date (if Notes shall have been called for redemption pursuant to
          Section 10.01(a)), as the case may be;

                                      4-1
<PAGE>

     (B)  the Issuer has paid or caused to be paid all Secured Obligations; and

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

     SECTION 4.02.  Application of Trust Money.  All moneys deposited with the
                    --------------------------
Trustee pursuant to Section 4.01 hereof shall be held in trust and applied by
it, in accordance with the provisions of the Notes and this Indenture, to the
payment, either directly or through any Paying Agent, as the Trustee may
determine, to the Holders of the particular Notes for the payment or redemption
of which such moneys have been deposited with the Trustee, of all sums due and
to become due thereon for principal and interest; 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 Trustee under the
provisions of this Indenture with respect to such Notes shall, upon demand of
the Issuer, be paid to the Trustee to be held and applied according to Section
3.03 and thereupon such Paying Agent shall be released from all further
liability with respect to such moneys.

     SECTION 4.04.  Release of Trust Estate.  The Trustee shall, on or after the
                    -----------------------
Termination Date, release any remaining portion of the Trust Estate from the
lien created by this Indenture and deposit in the Collection Account any funds
then on deposit in any other Trust Account.  The Trustee shall release property
from the lien created by this Indenture pursuant to this Section 4.04 only upon
receipt of an Issuer Request accompanied by an Officer's Certificate, an Opinion
of Counsel and (if required by the TIA) Independent Certificates in accordance
with TIA (S)(S) 314(c) and 314(d)(1) meeting the applicable requirements of
Section 11.01.

                                4-2
<PAGE>

                                   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):

          (i)    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; or

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

          (iii)  default in the observance or performance of any covenant or
     agreement of the Issuer made in this Indenture (other than a covenant or
     agreement, a default in the observance or performance of which is elsewhere
     in this Section specifically dealt with), or 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 proving 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,
     express or certified mail, to the Issuer by the Trustee or to the Issuer
     and the Trustee by the Holders of at least 25% of the Outstanding Amount of
     the Notes, 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; or

          (iv)   the commencement of an involuntary case against the Issuer
     under any applicable Federal or state bankruptcy, insolvency or other
     similar law now or hereafter in effect, and such case is not dismissed
     within 60 days; or

          (v)    (A) 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, (B) the entry of an order for relief in an
     involuntary case against the Issuer under any such law, (C) the consent by
     the Issuer to the entry of any such order for relief, (D) 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, (E) the
     making by the Issuer of any general assignment for the benefit of
     creditors, (F) the failure by the Issuer generally to pay its debts as such
     debts become due, or (G) the taking of action by the Issuer in furtherance
     of any of the foregoing.

                                      5-1
<PAGE>

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

          SECTION 5.02.  Rights upon Event of Default.
                         ----------------------------

          (a)  If an Event of Default shall have occurred and be continuing, the
Notes shall become immediately due and payable at par, together with accrued
interest thereon.  If an Event of Default shall have occurred and be continuing,
the Trustee may exercise any of the remedies specified in Section 5.04(a).

          (b)  If an Event of Default shall have occurred and be continuing, the
Trustee in its discretion may, or if so requested in writing by the Controlling
Noteholders shall, upon prior written notice to the Rating Agencies, declare by
written notice to the Issuer that the Notes become, whereupon they shall become,
immediately due and payable at par, together with accrued interest thereon.
Notwithstanding anything to the contrary in this paragraph (b), if an Event of
Default specified in Section 5.01(iv) or (v) shall occur and be continuing, the
Notes shall become immediately due and payable at par, together with accrued
interest thereon.

          SECTION 5.03.  Collection of Indebtedness and Suits for Enforcement by
                         -------------------------------------------------------
Trustee; Authority of Trustee.
-----------------------------

          (a)  The Issuer covenants that if any Notes are accelerated following
the occurrence of an Event of Default, the Issuer will, upon demand of the
Trustee, pay to it, for the benefit of the Holders of such Notes, the whole
amount then due and payable on such Notes for principal and interest, with
interest upon the overdue principal, and, to the extent payment at such rate of
interest shall be legally enforceable, upon overdue installments of interest, at
the applicable Interest Rate 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 Trustee and
its agents and counsel.

          (b)  If an Event of Default occurs and is continuing, the Trustee may
in its discretion, proceed to protect and enforce its rights and the rights of
the Noteholders, by such appropriate Proceedings as the 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 Trustee by this Indenture or by law.

          (c)  Notwithstanding anything to the contrary contained in this
Indenture (including without limitation Sections 5.04(a), 5.12, 5.13 and 5.17)
if the Issuer fails to perform its obligations under Section 10.01 hereof when
and as due, the Trustee may in its discretion proceed to protect and enforce its
rights and the rights of the Noteholders by such appropriate Proceedings as the
Trustee shall deem most effective to protect and enforce any such rights,
whether for specific performance of any covenant or agreement in this Indenture
or in aid of the

                                5-2
<PAGE>

exercise of any power granted herein, or to enforce any other proper remedy or
legal or equitable right vested in the 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, the Trustee, irrespective of
whether the principal of any Notes shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the Trustee
shall have made any demand pursuant to the provisions of this Section, 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, interest and premium, if any, 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 Trustee (including any claim
     for reasonable compensation to the Trustee and each predecessor Trustee,
     and their respective agents, attorneys and counsel, and for reimbursement
     of all expenses and liabilities incurred, and all advances made, by the
     Trustee and each predecessor Trustee, except as a result of negligence or
     bad faith) and of the Noteholders allowed in such Proceedings;

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

          (iii) to collect and receive any 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 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 Trustee or
     the Holders of Notes allowed in any judicial proceedings relative to the
     Issuer, its creditors and its property;

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

                                      5-3
<PAGE>

          (e)  Nothing herein contained shall be deemed to authorize the 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
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 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 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 Trustee, each predecessor 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 Trustee (including any
Proceedings involving the interpretation of any provision of this Indenture),
the Trustee shall be held to represent all the Holders of the Notes, and it
shall not be necessary to make any Noteholder a party to any such Proceedings.

          SECTION 5.04.  Remedies.
                         --------

          (a)  If an Event of Default under Section 5.01(i), (ii), (iv) or (v)
shall have occurred and be continuing which results in the acceleration of the
Notes (whether or not the Trust Estate is sold in one or more public or private
sales as provided in Section 5.04(d)(iv)), the Trustee shall make payments on
the Notes as provided in Section 5.06.

          (b)  If an Event of Default under Section 5.01(iii) shall have
occurred and be continuing which results in the acceleration of the Notes
(whether or not the Trust Estate is sold in one or more public or private sales
as provided in Section 5.04(d)(iv)), the Trustee will make payments on the Notes
as provided in Section 5.06.

          (c)  If the Trustee, in compliance with Section 5.04(a) or (b), is
deemed to have a conflict of interest under the TIA and is required to resign as
Trustee hereunder, the Trustee, pursuant to Section 6.10, may appoint one or
more trustees to act separately hereunder for each class of Notes (in the case
of the Class A Notes, such trustee shall act for all Class A Notes as if they
comprised a single class). In the event separate trustees are appointed for one
or more classes of Notes:

          (i)  so long as any amounts remain unpaid with respect to the Class A
     Notes, only the Trustee for the Class A Noteholders shall be entitled to
     waive any Event of Default or Servicer Termination Event or exercise any
     remedies under this Indenture;

          (ii) after the Class A Notes have been paid in full, only the Trustee
     for the Class M Noteholders shall be entitled to waive any Event of Default
     or Servicer Termination Event or exercise any remedies under this
     Indenture; and

                                      5-4
<PAGE>

          (iii) after the Class M Notes have been paid in full, the Trustee for
     the Class B Noteholders shall be entitled to waive any Event of Default or
     Servicer Termination Event or exercise any remedies under this Indenture.

          (d)   If an Event of Default shall have occurred and be continuing,
the Trustee may (subject to Section 5.05):

          (i)   institute Proceedings in its own name and as or on behalf of a
     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 any
     other remedy available to the Trustee and take any other appropriate action
     to protect and enforce the rights and remedies of 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
                                               --------  -------

               (A)  the Trustee may not sell or otherwise liquidate the Trust
          Estate following an Event of Default unless either

                         (x)  the Holders of 100% of the Outstanding Amount of
                    the Notes consent thereto,

                         (y)  the proceeds of such sale or liquidation
                    distributable to the Noteholders are sufficient to discharge
                    in full all amounts then due and unpaid upon such Notes for
                    principal and interest, or

                         (z)  the Trustee determines that the Trust Estate will
                    not continue to provide sufficient funds for the payment of
                    principal of and interest on the Notes as they would have
                    become due if the Notes had not been declared due and
                    payable, and the Trustee provides prior written notice to
                    the Rating Agencies and obtains the consent of the Holders
                    of Notes representing, in the aggregate, 662/3% or more of
                    the Note Principal Balance.

          In determining such sufficiency or insufficiency with respect to
          clause (y) and (z), the 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

                                      5-5
<PAGE>

          of such proposed action and as to the sufficiency of the Trust Estate
          for such purpose.

          SECTION 5.05.  Optional Preservation of the Contracts.  If any 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 Trustee may, but need not, elect to maintain possession of the
Trust Estate.  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 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 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.  Priorities.  If the Trustee collects any money or
                         ----------
property pursuant to this Article V, including any money or property in respect
of liquidation of the Trust Estate pursuant to Section 5.04(d)(iv), the Trustee
shall pay out the money or property as promptly as practicable in the following
order:

          (i)    amounts due and owing and required to be distributed to the
     Servicer, pursuant to priorities (i) through (iii) of Section 6.04(a) of
     the Sale and Servicing Agreement and not previously distributed, in the
     order of such priorities and without preference or priority of any kind
     within such priorities;

          (ii)   interest due under the Class A Notes, to the Holders thereof,
     ratably, without preference or priority of any kind;

          (iii)  interest due under the Class M-1 Notes, to the Holders thereof,
     ratably, without preference or priority of any kind;

          (iv)   interest due under the Class M-2 Notes, to the Holders thereof,
     ratably, without preference or priority of any kind;

          (v)    for interest due under the Class B Notes, to the Holders
     thereof, ratably, without preference or priority of any kind;

          (vi)   for principal outstanding under the Class A Notes, to the
     Holders thereof, ratably, without preference or priority of any kind;

          (vii)  for principal outstanding under the Class M-1 Notes, to the
     Holders thereof, ratably, without preference or priority of any kind;

          (viii) for principal outstanding under the Class M-2 Notes, to the
     Holders thereof, ratably, without preference or priority of any kind;

                                     5-6
<PAGE>

          (ix)  for principal outstanding under the Class B Notes, to the
     Holders thereof, notably, without preference or priority of any kind;

and the excess shall be deposited in the Certificate Distribution Account for
payment to the Class C Certificateholder.

          SECTION 5.07.  Limitation of Suits.  No Holder of any Note shall have
                         -------------------
any right to institute any Proceeding, judicial or otherwise, with respect to
this Indenture, or for the appointment of a receiver or trustee, or for any
other remedy hereunder, unless:

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

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

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

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

          (v)   no direction inconsistent with such written request has been
     given to the Trustee during such 60-day period by the Controlling
     Noteholders;

it being 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 Trustee shall receive conflicting or inconsistent
requests and indemnity from two or more groups of Holders of Notes, neither
representing the Controlling Noteholders, the Trustee in its sole discretion may
determine what action, if any, shall be taken, notwithstanding any other
provisions of this Indenture.

          SECTION 5.08.  Unconditional Rights of Noteholders To Receive
                         ----------------------------------------------
Principal and Interest.  Notwithstanding any other provisions in this Indenture,
----------------------
the Holder of any Note shall have the right, which is absolute and
unconditional, to receive payment of the principal of and interest on such Note
on or after the respective due dates thereof expressed in such Note or in this
Indenture (or, in the case of redemption, on or after the Redemption Date) and
to institute suit for the enforcement of any such payment, and such right shall
not be impaired without the consent of such Holder.

                                     5-7
<PAGE>

          SECTION 5.09.  Restoration of Rights and Remedies.  If 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 Trustee or to such Noteholder, then and
in every such case the Issuer, the 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
Trustee and the Noteholders shall continue as though no such Proceeding had been
instituted.

          SECTION 5.10.  Rights and Remedies Cumulative.  No right or remedy
                         ------------------------------
herein conferred upon or reserved 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 5.11.  Delay or Omission Not a Waiver.  No delay or omission
                         ------------------------------
of 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 Trustee or to
the Noteholders may be exercised from time to time, and as often as may be
deemed expedient, by the Trustee or by the Noteholders, as the case may be.

          SECTION 5.12.  Control by Controlling Noteholders.  The Controlling
                         ----------------------------------
Noteholders shall have the right to direct the time, method and place of
conducting any Proceeding for any remedy available to the Trustee with respect
to the Notes or exercising any trust or power conferred on the Trustee; provided
that

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

          (ii)  subject to the express terms of Section 5.04, any direction to
     the Trustee to sell or liquidate all or any portion of the Trust Estate
     shall be by the Holders of Notes representing not less than 100% of the
     Outstanding Amount of the Notes;

          (iii) if the conditions set forth in Section 5.05 have been satisfied
     and the Trustee elects to retain the Trust Estate pursuant to such Section,
     then any direction to the Trustee by Holders of Notes representing less
     than 100% of the Outstanding Amount of the Notes to sell or liquidate all
     or any portion of the Trust Estate shall be of no force and effect; and

          (iv)  the Trustee may take any other action deemed proper by the
     Trustee that is not inconsistent with such direction; provided, however,
                                                           --------  -------
     that, subject to Section 6.01, the Trustee need not take any action that it
     determines might involve it in liability or might materially and adversely
     affect the rights of any Noteholders not consenting to such action.

                                      5-8
<PAGE>

          SECTION 5.13.  Waiver of Past Defaults.
                         -----------------------

          The Controlling Noteholders may waive any past Default or Event of
Default and its consequences except a Default (a) in payment of principal of or
interest on any of the Notes or (b) in respect of a covenant or provision hereof
which cannot be modified or amended without the consent of the Holder of each
Note.  In the case of any such waiver, the Issuer, the Trustee and the Holders
of the Notes shall be restored to their former positions and rights hereunder,
respectively; but no such waiver shall extend to any subsequent or other Default
or impair any right consequent thereto.

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

          SECTION 5.14.  Undertaking for Costs.  All parties to this Indenture
                         ---------------------
agree, and each Holder of any Note by such Holder's acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, in any suit
for the enforcement of any right or remedy under this Indenture, or in any suit
against the Trustee for any action taken, suffered or omitted by it as 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 Trustee, (b) any suit instituted by any Noteholder,
or group of Noteholders, in each case holding in the aggregate more than 10% of
the Outstanding Amount of the Notes or (c) any suit instituted by any Noteholder
for the enforcement of the payment of principal of or interest on any Note on or
after the respective due dates expressed in such Note and in this Indenture (or,
in the case of redemption, on or after the Redemption Date).

          SECTION 5.15.  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 advantages of any such law, and covenants that
it will not hinder, delay or impede the execution of any power herein granted to
the Trustee, but will suffer and permit the execution of every such power as
though no such law had been enacted.

          SECTION 5.16.  Action on Notes.  The 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 Trustee or the Noteholders shall be impaired by the recovery of
any judgment by the 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.

                                      5-9
<PAGE>

          SECTION 5.17.  Performance and Enforcement of Certain Obligations.
                         --------------------------------------------------

          (a)  Promptly following a request from the Trustee to do so and at the
Seller's expense, the Issuer agrees to take all such lawful action as the
Trustee may request to compel or secure the performance and observance by the
Seller, the Servicer and the Originator, as applicable, of each of their
obligations to the Issuer under or in connection with the Sale and Servicing
Agreement or to the Seller under or in connection with the Transfer Agreement in
accordance with the terms thereof, and to exercise any and all rights, remedies,
powers and privileges lawfully available to the Issuer under or in connection
with the Sale and Servicing Agreement to the extent and in the manner directed
by the 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 obligations under the Sale and Servicing
Agreement.

          (b)  If an Event of Default has occurred and is continuing, the
Trustee may, and at the direction (which direction shall be in writing,
including facsimile) of the Controlling Noteholders shall, upon the receipt of
such indemnity as the Trustee may reasonably request, 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, including
the right or power to take any action to compel or secure performance or
observance by the Seller or the Servicer of each of their obligations to the
Issuer thereunder and to give any consent, request, notice, direction, approval,
extension or waiver under the Sale and Servicing Agreement, and any right of the
Issuer to take such action shall be suspended.

          (c)  Promptly following a request from the Trustee to do so and at the
Seller's expense, the Issuer agrees to take all such lawful action as the
Trustee may request to compel or secure the performance and observance by the
Originator of each of its obligations to the Seller under or in connection with
the Transfer Agreement in accordance with the terms thereof, and to exercise any
and all rights, remedies, powers and privileges lawfully available to the Issuer
under or in connection with the Transfer Agreement to the extent and in the
manner directed by the Trustee, including the transmission of notices of default
on the part of the Seller thereunder and the institution of legal or
administrative actions or proceedings to compel or secure performance by the
Originator of each of its obligations under the Transfer Agreement.

          (d)  If an Event of Default has occurred and is continuing the Trustee
may, and at the direction (which direction shall be in writing, including
facsimile) of the Controlling Noteholders shall, upon the receipt of such
indemnity as the Trustee may reasonably request, exercise all rights, remedies,
powers, privileges and claims of the Seller against the Originator under or in
connection with the Transfer Agreement, including the right or power to take any
action to compel or secure performance or observance by the Originator of each
of its obligations to the Seller hereunder and to give any consent, request,
notice, direction, approval, extension or waiver under the Transfer Agreement,
and any right of the Seller to take such action shall be suspended.

                                     5-10
<PAGE>

                                  ARTICLE VI

                                  THE TRUSTEE

     SECTION 6.01.  Duties of Trustee.
                    -----------------

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

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

          (i)  the Trustee undertakes to perform such duties and only such
     duties as are specifically set forth in this Indenture and no implied
     covenants or obligations shall be read into this Indenture against the
     Trustee; and

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

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

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

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

          (iii) the Trustee shall not be liable with respect to any action it
     takes or omits to take in good faith in accordance with a direction
     received by it pursuant to Section 5.12.

     (d)  Every provision of this Indenture that in any way relates to the
Trustee is subject to paragraphs (a), (b) and (c) of this Section.

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

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

                                      6-1
<PAGE>

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

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

     (i) In no event shall the Trustee be required to perform, or be responsible
for the manner of performance of, any of the obligations of the Servicer, or any
other party, under the Sale and Servicing Agreement unless and until appointed
successor Servicer in accordance with Section 7.03 thereof.

     (j) The Trustee shall, and hereby agrees that it will, perform all of the
obligations and duties required of it under the Sale and Servicing Agreement.

     (k) Without limiting the generality of this Section 6.01, the Trustee shall
have no duty (i) to see to any recording, filing or depositing of this Indenture
or any agreement referred to herein or any financing statement evidencing a
security interest in the Products, or to see to the maintenance of any such
recording or filing or depositing or to any recording, refiling or redepositing
of any thereof, (ii) to see to any insurance of the Products or Obligors or to
effect or maintain any such insurance, (iii) to see to the payment or discharge
of any tax, assessment or other governmental charge or any lien or encumbrance
of any kind owing with respect to, assessed or levied against any part of the
Trust, (iv) to confirm or verify the contents of any reports or certificates
delivered to the Trustee pursuant to this Indenture or the Sale and Servicing
Agreement believed by the Trustee to be genuine and to have been signed or
presented by the proper party or parties, or (v) to inspect the Products at any
time or ascertain or inquire as to the performance of observance of any of the
Issuer's, the Originator's or the Servicer's representations, warranties or
covenants or the Servicer's duties and obligations as Servicer and as custodian
of the Contract Files under the Sale and Servicing Agreement.

     SECTION 6.02.  Rights of Trustee.
                    -----------------

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

     (b) Before the Trustee acts or refrains from acting, it may require an
Officers' Certificate (with respect to factual matters) or an Opinion of
Counsel, as applicable.  The Trustee shall not be liable for any action it takes
or omits to take in good faith in reliance on the Officers' Certificate or
Opinion of Counsel, as applicable, or as directed by the requisite amount of
Note Owners as provided herein.

                                      6-2
<PAGE>

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

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

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

     (f) The Trustee shall be under no obligation to institute, conduct or
defend any litigation under this Indenture or in relation to this Indenture, at
the request, order or direction of any of the Holders of Notes, pursuant to the
provisions of this Indenture, unless such Holders of Notes shall have offered to
the Trustee reasonable security or indemnity against the costs, expenses and
liabilities that may be incurred therein or thereby; provided, however, that the
                                                     --------  -------
Trustee shall, upon the occurrence of an Event of Default (that has not been
cured), exercise the rights and powers vested in it by this Indenture with
reasonable care and skill.

     (g) The Trustee shall not be bound to make any investigation into the facts
or 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 the Holders of Notes
evidencing not less than 25% of the Outstanding Amount thereof; provided,
                                                                --------
however, that if the payment within a reasonable time to the Trustee of the
-------
costs, expenses or liabilities likely to be incurred by it in the making of such
investigation is, in the opinion of the Trustee, not reasonably assured to the
Trustee by the security afforded to it by the terms of this Indenture or the
Sale and Servicing Agreement, the 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 Person making
such request, or, if paid by the Trustee, shall be reimbursed by the Person
making such request upon demand.

     SECTION 6.03.  Individual Rights of Trustee.  The Trustee in its individual
                    ----------------------------
or any other capacity may become the owner or pledgee of Notes and may otherwise
deal with the Issuer or its Affiliates with the same rights it would have if it
were not Trustee.  Any Paying Agent, Note Registrar, co-registrar or co-paying
agent may do the same with like rights.  However, the Trustee is required to
comply with Sections 6.11 and 6.12.

     SECTION 6.04.  Trustee's Disclaimer.  The Trustee shall not be responsible
                    --------------------
for and makes no representation as to the validity or adequacy of this
Indenture, the Trust Estate or the Notes, it shall not be accountable for the
Issuer's use of the proceeds from the Notes, and it shall not be responsible for
any statement of the Issuer in the Indenture or in any document issued in

                                      6-3
<PAGE>

connection with the sale of the Notes or in the Notes other than the Trustee's
certificate of authentication.

     SECTION 6.05.  Notice of Defaults.  If a Default occurs and is continuing
                    ------------------
and if it is known to a Responsible Officer of the Trustee, the Trustee shall
mail to each Noteholder notice of the Default within 90 days after it occurs.
Except in the case of a Default in payment of principal of or interest on any
Note (including payments pursuant to the mandatory redemption provisions of such
Note), the Trustee may withhold the notice if and so long as a committee of its
Responsible Officers in good faith determines that withholding the notice is in
the interests of Noteholders.

     SECTION 6.06.  Reports by Trustee to Holders.  The Trustee shall deliver to
                    -----------------------------
each Noteholder such information as may be required to enable such holder to
prepare its federal and state income tax returns.

     SECTION 6.07.  Compensation and Indemnity.  The Issuer shall or shall cause
                    --------------------------
the Administrator to pay to the Trustee from time to time reasonable
compensation for its services. The Trustee's compensation shall not be limited
by any law on compensation of a trustee of an express trust.  The Issuer shall
cause the Administrator to reimburse the Trustee for all reasonable out-of-
pocket expenses incurred or made by it, including the 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
Trustee's agents, counsel, accountants and experts.  The Issuer shall cause the
Administrator to indemnify the Trustee against any and all loss, liability or
expense (including attorneys' fees) incurred by it in connection with the
administration of this trust and the performance of its duties hereunder.  The
Trustee shall notify the Issuer and the Administrator promptly of any claim for
which it may seek indemnity.  Failure by the Trustee to so notify the Issuer and
the Administrator shall not relieve the Issuer or the Administrator of its
obligations hereunder.  The Issuer shall or shall cause the Servicer to defend
any such claim, and the Trustee may have separate counsel and the Issuer shall
or shall cause the Administrator to pay the fees and expenses of such counsel.
Neither the Issuer not the Administrator need reimburse any expense or indemnify
against any loss, liability or expense incurred by the Trustee through the
Trustee's own wilful misconduct, negligence or bad faith.

     The Issuer's payment obligations to the Trustee pursuant to this Section
shall survive the discharge of this Indenture. When the Trustee incurs expenses
after the occurrence of a Default specified in Section 5.01(iv) or (v) 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 Trustee.  The Trustee may resign at any time
                    ----------------------
by so notifying the Issuer.  The Issuer may remove the Trustee if:

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

                                      6-4
<PAGE>

          (ii)   a court having jurisdiction in the premises in respect of the
     Trustee in an involuntary case or proceeding under federal or state banking
     or bankruptcy laws, as now or hereafter constituted, or any other
     applicable federal or state bankruptcy, insolvency or other similar law,
     shall have entered a decree or order granting relief or appointing a
     receiver, liquidator, assignee, custodian, trustee, conservator,
     sequestrator (or similar official) for the Trustee or for any substantial
     part of the Trustee's property, or ordering the winding-up or liquidation
     of the Trustee's affairs;

          (iii)  an involuntary case under the federal bankruptcy laws, as now
     or hereafter in effect, or another present or future federal or state
     bankruptcy, insolvency or similar law is commenced with respect to the
     Trustee and such case is not dismissed within 60 days;

          (iv)   the Trustee commences a voluntary case under any federal or
     state banking or bankruptcy laws, as now or hereafter constituted, or any
     other applicable federal or state bankruptcy, insolvency or other similar
     law, or consents to the appointment of or taking possession by a receiver,
     liquidator, assignee, custodian, trustee, conservator, sequestrator (or
     other similar official) for the Trustee or for any substantial part of the
     Trustee's property, or makes any assignment for the benefit of creditors or
     fails generally to pay its debts as such debts become due or takes any
     corporate action in furtherance of any of the foregoing; or

          (v)    the Trustee otherwise becomes incapable of acting.

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

     A successor Trustee shall deliver a written acceptance of its appointment
to the retiring Trustee and to the Issuer. Thereupon the resignation or removal
of the retiring Trustee shall become effective, and the successor Trustee shall
have all the rights, powers and duties of the Trustee under this Indenture. The
successor Trustee shall mail a notice of its succession to Noteholders. The
retiring Trustee shall promptly transfer all property held by it as Trustee to
the successor Trustee.

     If a successor Trustee does not take office within 60 days after the
retiring Trustee resigns or is removed, the retiring Trustee, the Issuer 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 Trustee.

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

     Any resignation or removal of the Trustee and appointment of a successor
Trustee pursuant to any of the provisions of this Section shall not become
effective until acceptance of appointment by the successor Trustee pursuant to
this Section and payment of all fees and

                                      6-5
<PAGE>

expenses owed to the outgoing Trustee. Notwithstanding the replacement of the
Trustee pursuant to this Section, the retiring Trustee shall be entitled to
payment or reimbursement of such amounts as such Person is entitled pursuant to
Section 6.07.

     SECTION 6.09.  Successor Trustee by Merger. If the Trustee consolidates
                    ---------------------------
with, merges or converts into, or transfers all or substantially all its
corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation without any
further act shall be the successor Trustee; provided that such corporation or
banking association shall be otherwise qualified and eligible under Section
6.11. The Trustee shall provide the Rating Agencies prompt notice of any such
transaction.

     In case at the time such successor or successors by merger, conversion or
consolidation to the 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 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 Trustee may authenticate such Notes either in the name of any predecessor
hereunder or in the name of the successor to the 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 Trustee shall have.

     SECTION 6.10.  Appointment of Co-Trustee or Separate 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 may at the time be located, the 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 Trustee may consider
necessary or desirable.  No co-trustee or separate trustee hereunder shall be
required to meet the terms of eligibility as a successor Trustee under Section
6.11 and no notice to Noteholders of the appointment of any co-trustee or
separate trustee shall be required under Section 6.08 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 the Trustee shall be conferred or imposed upon and exercised or
     performed by the 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 Trustee joining in such act),
     except to the extent that under any law of any jurisdiction in which any
     particular act or acts are to be performed the 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
     or any portion thereof in any such jurisdiction) shall be

                                      6-6
<PAGE>

     exercised and performed singly by such separate trustee or co-trustee, but
     solely at the direction of the Trustee;

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

          (iii) the 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 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 conferred, shall be vested with the estates or property specified
in its instrument of appointment, either jointly with the Trustee or separately,
as may be provided therein, subject to all the provisions of this Indenture,
specifically including every provision of this Indenture relating to the conduct
of, affecting the liability of, or affording protection to, the Trustee.  Every
such instrument shall be filed with the Trustee.

     (d)  Any separate trustee or co-trustee may at any time constitute the
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
Trustee, to the extent permitted by law, without the appointment of a new or
successor trustee.  Notwithstanding anything to the contrary in this Indenture,
the appointment of any separate trustee or co-trustee shall not relieve the
Trustee of its obligations and duties under this Indenture.

     SECTION 6.11.  Eligibility; Disqualification. The Trustee shall at all
                    -----------------------------
times satisfy the requirements of TIA (S) 310(a). The 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 shall not be an Affiliate of the
Company. The Trustee shall comply with TIA (S) 310(b), including the optional
provision permitted by the second sentence of TIA (S) 310(b)(9); provided,
                                                                 --------
however, that there shall be excluded from the operation of TIA (S) 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 (S)
310(b)(1) are met.

     SECTION 6.12.  Preferential Collection of Claims Against Issuer.  The
                    ------------------------------------------------
Trustee shall comply with TIA (S) 311(a), excluding any creditor relationship
listed in TIA (S) 311(b).  A Trustee who has resigned or been removed shall be
subject to TIA (S) 311(a) to the extent indicated.

     SECTION 6.13.  Trustee to Cooperate.
                    --------------------

     (a) Upon payment in full on any Contract, the Servicer will notify the
Trustee and the Originator (if the Originator is not the Servicer) on the next
succeeding Distribution Date by certification of a Servicing Officer (which
certification shall include a statement to the effect that

                                      6-7
<PAGE>

all amounts received in connection with such payments which are required to be
deposited in the Collection Account pursuant to Section 5.05 of the Sale and
Servicing Agreement have been so deposited) and shall request delivery of the
Contract to the Servicer. Upon receipt of such delivery and request, the Trustee
shall promptly release or cause to be released such Contract to the Servicer.
Upon receipt of such Contract, each of the Originator (if different from the
Servicer) and the Servicer is authorized to execute an instrument in
satisfaction of such Contract and to do such other acts and execute such other
documents as the Servicer deems necessary to discharge the Obligor thereunder
and eliminate any lien on the related Product. The Servicer shall determine when
a Contract has been paid in full; provided that, to the extent that insufficient
                                  --------
payments are received on a Contract credited by the Servicer as prepaid or paid
in full and satisfied, the shortfall shall be paid by the Servicer out of its
own funds, without any right of reimbursement therefor (except from additional
amounts recovered from the related Obligor or otherwise in respect of such
Contract), and deposited in the Collection Account.

     SECTION 6.14.  Sale and Servicing Agreement.  Insofar as such provisions
                    ----------------------------
describe rights or duties of the Trustee, the Trustee acknowledges and agrees to
the terms of Sections 3.05, 4.01, 5.17, and 10.03 and Articles VI, VII and VIII
of the Sale and Servicing Agreement. Such provisions are incorporated herein by
reference.  U.S. Bank Trust National Association hereby accepts its appointment
as Paying Agent for the Certificates as set forth in Section 3.9 of the Trust
Agreement and agrees to the provisions contained in Section 5.2(f) of the Trust
Agreement.

     SECTION 6.15.  Trustee Advances.
                    ----------------

     (a) If the Servicer fails to deposit into the Collection Account Advances
as required by Section 5.13 of the Sale and Servicing Agreement, then the
Trustee shall, subject to the provisions of paragraph (b) below, from its own
funds, deposit into the Collection Account the amount not so deposited by the
Servicer on or before the Business Day preceding the related Distribution Date
(an "Trustee Advance").

     (b) The Trustee shall not be required to make any Trustee Advance if and to
the extent that it determines in good faith that the funds, if advanced, would
not be recoverable by it from subsequent amounts available in the Collection
Account in accordance with Section 6.04(a) of the Sale and Servicing Agreement.

     (c) The Trustee shall be entitled to reimbursement of an Trustee Advance
from funds subsequently available therefor in the Collection Account in
accordance with Section 6.04(a) of the Sale and Servicing Agreement.

                                      6-8
<PAGE>

                                  ARTICLE VII

                        NOTEHOLDERS' LISTS AND REPORTS

     SECTION 7.01.  Issuer To Furnish Trustee Names and Addresses to
                    ------------------------------------------------
Noteholders. The Issuer will furnish or cause to be furnished to the Trustee (a)
-----------
not more than five days after the earlier of (i) each Record Date and (ii) three
months after the last Record Date, a list, in such form as the Trustee may
reasonably require, of the names and addresses of the Holders of Notes as of
such Record Date, (b) at such other times as the Trustee may request in writing,
within 30 days after receipt by the Issuer of any such request, a list of
similar form and content as of a date not more than 10 days prior to the time
such list is furnished; provided, however, that so long as the Trustee is the
                        --------  --------
Note Registrar, no such list shall be required to be furnished.

     SECTION 7.02.  Preservation of Information; Communications to Noteholders.
                    ----------------------------------------------------------

     (a)  The 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 Trustee as provided in Section 7.01 and the
names and addresses of Holders of Notes received by the Trustee in its capacity
as Note Registrar.  The 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 (S) 312(b) with other
Noteholders with respect to their rights under this Indenture or under the
Notes.

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

     SECTION 7.03.  Reports by Issuer.
                    -----------------

     (a)  The Issuer shall:

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

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

          (iii)  supply to the Trustee (and the Trustee shall transmit by mail
     to all Noteholders described in TIA (S) 313(c)) such summaries of any
     information, documents

                                      7-1
<PAGE>

     and reports required to be filed by the Issuer pursuant to clauses (i) and
     (ii) of this Section 7.03(a) as may be required by rules and regulations
     prescribed from time to time by the Commission.

     (b)  Unless the Issuer otherwise determines, the fiscal year of the Issuer
shall end on December 31 of each year.

     SECTION 7.04.  Reports by Trustee.  If required by TIA (S) 313(a), within
                    ------------------
60 days after each March 31 beginning with March 31, 2000, the Trustee shall
mail to each Noteholder as required by TIA (S) 313(c) a brief report dated as of
such date that complies with TIA (S) 313(a). The Trustee also shall comply with
TIA (S) 313(b).

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

                                      7-2
<PAGE>

                                 ARTICLE VIII

                     ACCOUNTS, DISBURSEMENTS AND RELEASES

     SECTION 8.01.  Collection of Money.  Except as otherwise expressly provided
                    -------------------
herein, the 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
Trustee pursuant to this Indenture.  The 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 this Indenture
or the Notes, the Trustee may take such action as may be appropriate to enforce
such payment or performance, including the institution and prosecution of
appropriate Proceedings.  Any such action shall be without prejudice to any
right to claim a Default or Event of Default under this Indenture and any right
to proceed thereafter as provided in Article V.

     SECTION 8.02.  Trust Accounts.
                    --------------
     (a)  On or prior to the Closing Date, the Issuer shall cause the Servicer
to establish and maintain, in the name of the Trustee, for the benefit of the
Noteholders and the Certificateholders, the Trust Accounts as provided in
Section 6.01 of the Sale and Servicing Agreement.

     (b)  All collections in respect of the Contracts will be deposited in the
Collection Account as provided in Section 6.02 of the Sale and Servicing
Agreement.

     (c)  On each Distribution Date, the Trustee shall distribute all amounts on
deposit in the Note Distribution Account to Noteholders in respect of the Notes
to the extent of amounts due and unpaid on the Notes for principal and interest,
in accordance with the instructions of the Servicer in the following order of
priority:

          (1)  to pay the amount described in Section 6.04(a)(iv) of the Sale
     and Servicing Agreement as interest on the Class A Notes, or, if the amount
     on deposit in the Note Distribution Account is less than the sum of the
     Class A Interest Amount and the Unpaid Class A Interest Shortfall, then to
     the Class A-1, Class A-2 and Class A-3 Notes pro rata in accordance with
     their respective entitlements to interest;

          (2)  after payment of the amounts specified in clause (1) above, to
     pay the amount described in Section 6.04(a)(v) of the Sale and Servicing
     Agreement as interest on the Class M-1 Notes;

          (3)  after payment of the amounts specified in clauses (1) and (2)
     above, to pay the amount described in Section 6.04(a)(vi) of the Sale and
     Servicing Agreement as interest on the Class M-2 Notes;

                                     8-1
<PAGE>

          (4)  after payment of the amounts specified in clauses (1) through (3)
     above, to pay the amount described in Section 6.04(a)(vii) of the Sale and
     Servicing Agreement as interest on the Class B Notes;

          (5)  after payment of the amounts specified in clauses (1) through (4)
     above, to pay the Total Note Principal Distribution Amount (or the
     remaining amount on deposit in the Note Distribution Account, if less) in
     the following order of priority:

               (A)  the Class A-1 Formula Principal Distribution Amount to the
          Class A-1 Noteholders;

               (B)  the Class A-2 and Class A-3 Formula Principal Distribution
          Amount to the Class A-2 Noteholders until the Class A-2 Principal
          Balance has been reduced to zero, and thereafter to the Class A-3
          Noteholders;

               (C)  the Class M-1 Formula Principal Distribution Amount to the
          Class M-1 Noteholders;

               (D)  the Class M-2 Formula Principal Distribution Amount to the
          Class M-2 Noteholders; and

               (E)  the Class B Formula Principal Distribution Amount to the
          Class B Noteholders.

     (d)  If the Trustee shall not have received the applicable Monthly Report
by any Distribution Date, the Trustee shall distribute all funds then in the
Note Distribution Account to Noteholders in accordance with Section 8.02(c), to
the extent of such funds, on such Distribution Date.

     (e)  The Trustee agrees, to the extent required by the Code, to withhold
from each payment due hereunder or under any Note, United States withholding
taxes at the appropriate rate, and, on a timely basis, to deposit such amounts
with an authorized depository and make such returns, filings and other reports
in connection therewith as are required of it under the Code.  Any Noteholder
which is eligible for an exemption from or reduction of withholding of United
States federal income taxes shall, from time to time, provide to the Trustee in
a timely manner all appropriate and properly completed forms indicating such
eligibility, as may be necessary to permit the Trustee not to withhold taxes
from payments due to such Noteholder.  In connection with the foregoing, the
Trustee shall promptly furnish to each Noteholder in a timely fashion such U.S.
Treasury forms as are required by the Code to be furnished to such Noteholder
indicating payment of any taxes withheld from any payments by the Trustee to
such Noteholder. The Trustee shall be fully protected in relying upon, and each
Noteholder by its acceptance of a Note hereunder agrees to indemnify and hold
the Trustee harmless against all claims or liability of any kind arising in
connection with or related to the Trustee's reliance upon any documents, forms
or information provided by any Noteholder to the Trustee.  In addition, if the
Trustee has not withheld taxes on any payment made to any Noteholder, and the
Trustee is subsequently required to remit to any taxing authority any such
amount not withheld, such Noteholder shall

                                    8-2
<PAGE>

 return such amount to the Trustee upon written demand by the Trustee. In no
 event shall the Trustee be liable for consequential damages to any Noteholder.

     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 Trust Accounts shall be
invested and reinvested in Eligible Investments in accordance with the
provisions of Section 6.01(g) of the Sale and Servicing Agreement.  All income
or other gain from investments of moneys deposited in such Trust Accounts shall
be deposited by the Trustee in the Collection Account, and any loss resulting
from such investments shall be charged to the related Trust Account. The Issuer
will not direct the Trustee to make any investment of any funds or to sell any
investment held in any of the Trust Accounts unless the security interest
Granted and perfected in such account will continue to be perfected in such
investment or the proceeds of such sale, in either case without any further
action by any Person, and, in connection with any direction to the Trustee to
make any such investment or sale, if requested by the Trustee, the Issuer shall
deliver to the Trustee an Opinion of Counsel, acceptable to the Trustee, to such
effect.

     (b)  Subject to Section 6.01(g), the Trustee shall not in any way be held
liable by reason of any insufficiency in any of the Trust Accounts resulting
from any loss on any Eligible Investment included therein except for losses
attributable to the Trustee's failure to make payments on such Eligible
Investments issued by the Trustee, in its commercial capacity as principal
obligor and not as Trustee, in accordance with their terms.

     (c)  If (i) the Issuer shall have failed to give investment directions for
any funds on deposit in the Trust Accounts to the Trustee by 11:00 a.m., New
York City time (or such other time as may be agreed by the Issuer and 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 Trustee
shall, to the fullest extent practicable, invest and reinvest funds in the Trust
Accounts in one or more Eligible Investments.

                                     8-3
<PAGE>

                            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 Trustee, when authorized by an Issuer
Order, at any time and from time to time, may enter into one or more indentures
supplemental hereto (which shall conform to the provisions of the Trust
Indenture Act as in force at the date of the execution thereof), in form
satisfactory to the Trustee, for any of the following purposes:

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

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

          (iii) to add to the covenants of the Issuer, for the benefit of the
     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 Trustee;

          (v)   to cure any ambiguity, to correct or supplement any provision
     herein or in any supplemental indenture which may be inconsistent with any
     other provision herein or in any supplemental indenture;

          (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 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.

                                     9-1
<PAGE>

     (b)  The Issuer and the Trustee, when authorized by an Issuer Order, may,
also without the consent of any of the Holders of the Notes but with prior
notice to the Rating Agencies, enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to, or changing in
any manner or eliminating any of the provisions of, this Indenture; provided,
                                                                    --------
however, that such action shall not, as evidenced by an Opinion of Counsel,
-------
adversely affect in any material respect the interests of any Noteholder.

     SECTION 9.02.  Supplemental Indentures With Consent of Noteholders.  The
                    ---------------------------------------------------
Issuer and the Trustee, when authorized by an Issuer Order, also may, with prior
notice to the Rating Agencies, and with the consent of the Holders of not less
than a majority of the Outstanding Amount of the Notes, by Act of such Holders
delivered to the Issuer and the 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; provided, however, that, no such supplemental indenture shall,
           --------  -------
without the consent of the Holder of each Outstanding Note affected thereby:

          (i)   change the date of payment of any installment of principal of or
     interest on any Note, or reduce the principal amount thereof, the interest
     rate thereon or the Redemption Price with respect thereto, change the
     provision of this Indenture relating to the application of collections on,
     or the proceeds of the sale of, the Trust Estate to payment of principal of
     or interest on the Notes, or change any place of payment where, or the coin
     or currency in which, any Note or the interest thereon is payable, or
     impair the right to institute suit for the enforcement of the provisions of
     this Indenture requiring the application of funds available therefor, as
     provided in Article V, to the payment of any such amount due on the Notes
     on or after the respective due dates thereof (or, in the case of
     redemption, on or after the Redemption Date);

          (ii)  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;

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

          (iv)  reduce the percentage of the Outstanding Amount of the Notes
     required to direct the Trustee to direct the Issuer to sell or liquidate
     the Trust Estate pursuant to Section 5.04;

          (v)   modify any provision of this Section except to increase any
     percentage specified herein or to provide that certain additional
     provisions of this Indenture or the Related Documents cannot be modified or
     waived without the consent of the Holder of each Outstanding Note affected
     thereby;

                                     9-2
<PAGE>

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

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

     The Trustee may in its discretion determine whether or not any Notes would
be 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 Trustee shall not be liable for any
such determination made in good faith.

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

     Promptly after the execution by the Issuer and the Trustee of any
supplemental indenture pursuant to this Section, the Trustee shall mail to the
Holders of the Notes and the Rating Agencies 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 Trustee to mail
such notice, or any defect therein, shall not, however, in any way impair or
affect the validity of any such supplemental indenture.

     SECTION 9.03.  Execution of Supplemental Indentures.  In executing, or
                    ------------------------------------
permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the modifications thereby of the trusts created
by this Indenture, the 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 stating that the execution of such supplemental indenture is authorized
or permitted by this Indenture.  The Trustee may, but shall not be obligated to,
enter into any such supplemental indenture that affects the 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 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
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.

                                     9-3
<PAGE>

     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 Trustee shall, bear a
notation in form approved by the Trustee as to any matter provided for in such
supplemental indenture.  If the Issuer or the Trustee shall so determine, new
notes so modified as to conform, in the opinion of the Trustee and the Issuer,
to any such supplemental indenture may be prepared and executed by the Issuer
and authenticated and delivered by the Trustee in exchange for Outstanding
Notes.

                                     9-4
<PAGE>

                                   ARTICLE X

                              REDEMPTION OF NOTES

     SECTION 10.01.  Redemption.  In the event that (i) the Class C
                     ----------
Certificateholder pursuant to Article VIII of the Sale and Servicing Agreement
purchases the corpus of the Trust or (ii) the corpus of the Trust is sold
pursuant to Section 10.04 below, the Notes are subject to redemption in whole,
but not in part, on the Distribution Date on which such repurchase or sale
occurs, for a purchase price equal to the Redemption Price; provided, however,
that the Issuer has available funds sufficient to pay the Redemption Price.  The
Originator, the Servicer or the Issuer shall furnish the Rating Agencies notice
of such redemption.  If the Notes are to be redeemed pursuant to this Section
10.01(a), the Servicer or the Issuer shall furnish notice of such election to
the Trustee not later than 25 days prior to the Redemption Date, and the Issuer
shall deposit with the Trustee in the Note Distribution Account the Redemption
Price of the Notes to be redeemed, whereupon all such Notes shall be due and
payable on the Redemption Date upon the furnishing of a notice complying with
Section 10.02 to each Holder of the Notes.

     SECTION 10.02.  Form of Redemption Notice.
                     --------------------------

     (a)  Notice of redemption under Section 10.01(a) shall be given by the
Trustee by first-class mail, postage prepaid, mailed not less than five days
prior to the applicable Redemption Date to each Holder of Notes, as of the close
of business on the Record Date with respect to the Distribution Date immediately
preceding the applicable Redemption Date, at such Holder's address appearing in
the Note Register.

     All notices of redemption shall state:

          (i)   the Redemption Date;

          (ii)  the Redemption Price; and

          (iii) the place where such Notes are to be surrendered for payment of
                the Redemption Price (which shall be the office or agency of the
                Issuer to be maintained as provided in Section 3.02).

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

     (b)  Prior notice of redemption under Section 10.01(b) is not required to
be given to Noteholders.

                                     10-1
<PAGE>

     SECTION 10.03.  Notes Payable on Redemption Date.  The Notes or portions
                     --------------------------------
thereof to be redeemed shall, following notice of redemption (if any) as
required by Section 10.02, on the Redemption Date become due and payable at the
Redemption Price and (unless the Issuer shall default in the payment of the
Redemption Price) no interest shall accrue on the Redemption Price for any
period after the date to which accrued interest is calculated for purposes of
calculating the Redemption Price.

     SECTION 10.04.  Contract Pool Auction.
                     ---------------------

     (a)  If the Class C Certificateholder has not exercised the repurchase
option described in Section 8.01 of the Sale and Servicing Agreement as of the
first Distribution Date as of which the Pool Scheduled Principal Balance is less
than 20% of the Cutoff Date Pool Principal Balance, the Trustee shall solicit
bids for the purchase of the Contracts remaining in the Trust on a date (the
"Auction Date") that is prior to the next Distribution Date.  In the event that
satisfactory bids are received as described below, the net sale proceeds will be
remitted to the Collection Account and applied in accordance with Section
6.04(a) of the Sale and Servicing Agreement, on the Distribution Date succeeding
the Auction Date (the "Sale Date").  If satisfactory bids are not received, the
Trustee shall decline to sell the Contracts and shall thereafter conduct an
auction of the Contracts every third month until satisfactory bids are received
or the Notes are otherwise paid in full.

     (b)  The Trustee must receive at least two bids from prospective purchasers
that are considered at the time to be competitive participants in the market for
installment purchase contracts similar to the Contracts.  Any such bidder must
agree to the continuation of the Originator as Servicer of the Contracts on
terms substantially similar to those in the Sale and Servicing Agreement (if
Conseco Finance Corp.  is then the Servicer).  The Trustee shall accept the
highest bid received, but only if it is at least equal to the Minimum Purchase
Amount.  The Trustee may consult, and at the direction of the Originator will be
required to consult, with a financial advisor, which may include one of the
Underwriters, to determine if the fair market value of the Contracts has been
offered.

                                     10-2
<PAGE>

                                  ARTICLE XI

                                 MISCELLANEOUS

     SECTION 11.01.  Compliance Certificates and Opinions, etc.
                     ------------------------------------------

     (a)  Upon any application or request by the Issuer to the Trustee to take
any action under any provision of this Indenture, the Issuer shall furnish to
the Trustee (i) an Officers' 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 additional certificate or opinion need be furnished.

     Every certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture shall include:

          (i)    a statement that each signatory of such certificate or opinion
     has read or has caused to be read such covenant or condition and the
     definitions herein relating thereto;

          (ii)   a brief statement as to the nature and scope of the examination
     or investigation upon which the statements or opinions contained in such
     certificate or opinion are based;

          (iii)  a statement that, in the 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.

          (b)(i) Prior to the deposit of any Indenture Collateral or other
     property or securities with the Trustee that is to be made the basis for
     the release of any property subject to the lien created by this Indenture,
     the Issuer shall, in addition to any obligation imposed in Section 11.01(a)
     or elsewhere in this Indenture, furnish to the Trustee an Officers'
     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 Indenture Collateral or other property or securities to be so
     deposited.

          (ii)   Whenever the Issuer is required to furnish to the Trustee an
     Officers' Certificate certifying or stating the opinion of any signer
     thereof as to the matters described in clause (i) above, the Issuer shall
     also deliver to the Trustee an Independent

                                     11-1
<PAGE>

     Certificate as to the same matters, if the fair value to the Issuer of the
     property to be so deposited and of all other such property made the basis
     of any such withdrawal or release since the commencement of the then-
     current fiscal year of the Issuer, as set forth in the certificates
     delivered pursuant to clause (i) above and this clause (ii), is 10% or more
     of the Outstanding Amount of the Notes, but such a certificate need not be
     furnished with respect to any property so deposited, if the fair value
     thereof to the Issuer as set forth in the related Officers' Certificate is
     less than $25,000 or less than one percent of the Outstanding Amount of the
     Notes.

          (iii)     Other than with respect to any release described in clause
     (A) or (B) of Section 11.01(b)(v), whenever any property or securities are
     to be released from the lien created by this Indenture, the Issuer shall
     also furnish to the Trustee an Officers' 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 created by this Indenture in
     contravention of the provisions hereof.

          (iv)      Whenever the Issuer is required to furnish to the Trustee an
     Officers' Certificate certifying or stating the opinion of any signer
     thereof as to the matters described in clause (iii) above, the Issuer shall
     also furnish to the Trustee an Independent Certificate as to the same
     matters if the fair value of the property or securities and of all other
     property or securities (other than property described in clauses (A) or (B)
     of Section 11.01(b)(v)) released from the lien created by this Indenture
     since the commencement of the then current fiscal year, as set forth in the
     certificates required by clause (iii) above and this clause (iv), equals
     10% or more of the Outstanding Amount of the Notes, but such certificate
     need not be furnished in the case of any release of property or securities
     if the fair value thereof as set forth in the related Officers' Certificate
     is less than $25,000 or less than one percent of the then Outstanding
     Amount of the Notes.

          (v)       Notwithstanding any other provision of this Section, the
     Issuer may, without compliance with the other provisions of this Section,
     (A) collect, liquidate, sell or otherwise dispose of Contracts as and to
     the extent permitted or required by the Related Documents (including as
     provided in Section 5.06 of the Sale and Servicing Agreement) and (B) make
     cash payments out of the Trust Accounts as and to the extent permitted or
     required by the Related Documents.

     SECTION 11.02. Form of Documents Delivered to 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

                                    11-2
<PAGE>

such officer knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to the matters upon which
his certificate or opinion is based are erroneous. Any such certificate of an
Authorized Officer or Opinion of Counsel may be based, insofar as it relates to
factual matters, upon a certificate or opinion of, or representations by, an
officer or officers of the Servicer, the Company or the Issuer, stating that the
information with respect to such factual matters is in the possession of the
Servicer, the Company or the Issuer, 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 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 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 Trustee, and, where it is hereby expressly required, to the
Issuer. Such instrument or instruments (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the "Act" of the
Noteholders signing such instrument or instruments. Proof of execution of any
such instrument or of a 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 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 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

                                    11-3
<PAGE>

or suffered to be done by the Trustee or the Issuer in reliance thereon, whether
or not notation of such action is made upon such Note.

     SECTION 11.04. Notices, etc., to Trustee, Issuer and Rating Agencies. Any
                    -----------------------------------------------------
request, demand, authorization, direction, notice, consent, waiver or Act of
Noteholders or other documents provided or permitted by this Indenture to be
made upon, given or furnished to or filed with:

          (a)    the Trustee by any Noteholder or by the Issuer shall be
     sufficient for every purpose hereunder if made, given, furnished or filed
     in writing to or with the Trustee at its Corporate Trust Office,

          (b)    the Issuer by the Trustee or by any Noteholder shall be
     sufficient for every purpose hereunder if made in writing and mailed,
     first-class, postage prepaid, to the Issuer addressed to: Conseco Finance
     Recreational Enthusiast Consumer Trust 2000-A, in care of Wilmington Trust
     Company, as Owner Trustee, Rodney Square North, 1100 North Market Street,
     Wilmington, Delaware 19890-0001, Attention: Corporate Trust Administration
     or at any other address previously furnished in writing to the Trustee by
     Issuer. The Issuer shall promptly transmit any notice received by it from
     the Noteholders to the Trustee, or

          (c)    the Rating Agencies by the Issuer, the Trustee or the Owner
     Trustee shall be sufficient for every purpose hereunder if made in writing,
     personally delivered or mailed by certified mail, return receipt requested
     to (i) in the case of  Moody's, at the following address: 99 Church Street,
     New York, New York 10007, Attention: Structured Finance Surveillance Group
     and (ii) in the case of Standard & Poor's, at the following address:
     Standard & Poor's Ratings Service, 55 Water Street, New York, New York
     10041; 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 Trustee but such filing
shall not be a condition precedent to the validity of any action taken in
reliance upon such a waiver.

                                    11-4
<PAGE>

     In case, by reason of the suspension of regular mail service as a result of
a strike, work stoppage or similar activity, it shall be impractical to mail
notice of any event of Noteholders when such notice is required to be given
pursuant to any provision of this Indenture, then any manner of giving such
notice as shall be satisfactory to the 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 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 Trustee a copy of each such agreement
and the 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 (S)(S) 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 Trustee in this Indenture shall bind its successors.

     SECTION 11.10. Severability. In case any provision in this Indenture or
                    ------------
in the Notes shall be invalid, illegal or unenforceable, the validity, legality,
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

     SECTION 11.11. Benefits of Indenture. Nothing in this Indenture or in the
                    ---------------------
Notes, express or implied, shall give to any Person, other than the parties
hereto and their successors hereunder, and the Noteholders, and any other party
secured hereunder, and any other Person with an ownership interest in any part
of the Trust Estate, any benefit or any legal or equitable right, remedy or
claim under this Indenture.

                                     11-5
<PAGE>

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

     SECTION 11.13. Governing Law. THIS INDENTURE SHALL BE CONSTRUED IN
                    -------------
ACCORDANCE WITH THE LAWS OF THE STATE OF MINNESOTA, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     SECTION 11.14. Counterparts. This Indenture may be executed in any number
                    ------------
of counterparts, each of which so executed shall be deemed to be an original,
but all such counterparts shall together constitute but one and the same
instrument.

     SECTION 11.15. Recording of Indenture. If this Indenture is subject to
                    ----------------------
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense accompanied by an Opinion of Counsel
(which may be counsel to the Trustee or any other counsel reasonably acceptable
to the 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 Trustee under this Indenture.

     SECTION 11.16. Trust Obligation. No recourse may be taken, directly or
                    ----------------
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or
the Trustee on the Notes or under this Indenture or any certificate or other
writing delivered in connection herewith or therewith, against (i) the Trustee
or the Owner Trustee in its individual capacity, (ii) any owner of a beneficial
interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
director, employee or agent of the Trustee or the Owner Trustee in its
individual capacity, any holder of a beneficial interest in the Issuer, the
Owner Trustee or the Trustee or of any successor or assign of the Trustee or the
Owner Trustee in its individual capacity, except as any such Person may have
expressly agreed (it being understood that the 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 Articles VI, VII and
VIII of the Trust Agreement.

     SECTION 11.17. No Petition. The Trustee, by entering into this Indenture,
                    -----------
and each Noteholder, by accepting a Note, hereby covenant and agree that they
will not at any time institute against the Company, the Issuer or any General
Partner, or join in any institution against the Company, the Issuer or any
General Partner of, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other proceedings under any United States federal or
state bankruptcy or similar law in connection with any obligations relating to
the Notes, this Indenture or any of the Related Documents.

                                     11-6
<PAGE>

     SECTION 11.18. Inspection. The Issuer agrees that, on reasonable prior
                    ----------
notice, it will permit any representative of the Trustee, during the Issuer's
normal business hours, to examine all the books of account, records, reports,
and other papers of the Issuer, to make copies and extracts therefrom, to cause
such books to be audited by independent certified public accountants, and to
discuss the Issuer's affairs, finances and accounts with the Issuer's officers,
employees, and independent certified public accountants, all at such reasonable
times and as often as may be reasonably requested.  The 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
Trustee may reasonably determine that such disclosure is consistent with its
obligations hereunder.

     SECTION 11.19. Limitation of Liability. It is expressly understood and
                    -----------------------
agreed by the parties hereto that (a) this Agreement is executed and delivered
by Wilmington Trust Company, not individually or personally but solely as Owner
Trustee of Conseco Finance Recreational Enthusiast Consumer Trust 2000-A, in the
exercise of the powers and authority conferred and vested in it, (b) each of the
representations, undertakings and agreements herein made on the part of the
Issuer is made and intended not as personal representations, undertakings and
agreements by Wilmington Trust Company but is made and intended for the purpose
for binding only the Issuer, (c) nothing herein contained shall be construed as
creating any liability on Wilmington Trust Company, individually or personally,
to perform any covenant either expressed or implied contained herein, all such
liability, if any, being expressly waived by the parties hereto and by any
Person claiming by, through or under the parties hereto and (d) under no
circumstances shall Wilmington Trust Company be personally liable for the
payment of any indebtedness or expenses of the Issuer or be liable for the
breach or failure of any obligation, representation, warranty or covenant made
or undertaken by the Issuer under this Agreement or any other related documents.

                                    11-7
<PAGE>

     IN WITNESS WHEREOF, the Issuer and the Trustee have caused this Indenture
to be duly executed by their respective officers, thereunto duly authorized, all
as of the day and year first above written.

                              CONSECO FINANCE RECREATIONAL
                              ENTHUSIAST CONSUMER TRUST 2000-A

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

                              By   /s/ Patricia A. Evans
                                   ---------------------------------------------
                                   Name:  Patricia A. Evans
                                   Title: Senior Financial Services Officer

                              U.S. BANK TRUST NATIONAL ASSOCIATION, not in
                              its individual capacity but solely as Trustee

                              By   /s/ Harry H. Hall
                                   ---------------------------------------------
                                   Name:  Harry H. Hall
                                   Title: Vice President

                                    11-8
<PAGE>

                                                                       EXHIBIT A

                             Schedule of Contracts

                                     A-1

<PAGE>

                                                                       EXHIBIT B

                         Form of Depository Agreement

                                     B-1
<PAGE>

                                                                       EXHIBIT C

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.

         CONSECO FINANCE RECREATIONAL ENTHUSIAST CONSUMER TRUST 2000-A

                          CLASS A-1 ASSET-BACKED NOTE

REGISTERED                                                           $________
NO. R-________                                               CUSIP NO.________

     Conseco Finance Recreational Enthusiast Consumer Trust 2000-A, 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 Cede
& Co., or registered assigns, the principal sum of [                ] payable
on each Distribution Date in an amount equal to the result obtained by
multiplying (i) a fraction the numerator of which is $170,800,000 and the
denominator of which is $___________ by (ii) the aggregate amount, if any,
payable from the Note Distribution Account in respect of principal on the Class
A-1 Notes pursuant to Section 3.01 of the Indenture; provided, however, that the
entire unpaid principal amount of this Note shall be due and payable on the
earlier of July 2008 Distribution Date (the "Class A-1 Final Scheduled
Distribution Date") and the Redemption Date, if any, pursuant to Section 10.01
of the Indenture referred to on the reverse hereof.

     The Issuer will pay interest on this Note at the Class A-1 Interest Rate on
each Distribution Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note outstanding on the
preceding Distribution Date (after giving effect to all payments of principal
made on the preceding Distribution Date).  Interest on this Note will accrue for
each Distribution Date from the most recent Distribution Date on which interest
has been paid to but excluding such Distribution Date or, if no interest has yet
been paid, from June 29, 2000.  Interest will be computed on the basis of a 360-
day year consisting of twelve 30-day months.  Such principal of and interest on
this Note shall be paid in the manner specified on the reverse hereof.

     The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and

                                     C-1
<PAGE>

private debts. All payments made by the Issuer with respect to this Note shall
be applied first to interest due and payable on this Note as provided above and
then to the unpaid principal of this Note.

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

     Unless the certificate of authentication hereon has been executed by the
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.

     Anything herein to the contrary notwithstanding, except as expressly
provided in the Indenture and Related Documents, none of Wilmington Trust
Company in its individual capacity, U.S. Bank Trust National Association in its
individual capacity, any owner of a beneficial interest in the Issuer, the
Seller, the Servicer, or any of their respective partners, beneficiaries,
agents, officers, directors, employees or successors or assigns shall be
personally liable for, nor shall recourse be had to any of them for, the payment
of principal of or interest on this Note or performance of, or omission to
perform, any of the covenants, obligations or indemnifications contained in the
Indenture. Each Noteholder or Note Owner, by acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, agrees that, except as
expressly provided in the Indenture and Related Documents, in the case of an
Event of Default under the Indenture, it 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.

                                C-2
<PAGE>

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer.

Date:  June ___, 2000

                              CONSECO FINANCE RECREATIONAL ENTHUSIAST CONSUMER
                              TRUST 2000-A

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

                              By _______________________________________________
                                  Name:
                                  Title:

                                     C-3
<PAGE>

                    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                              U.S. BANK TRUST NATIONAL ASSOCIATION, not in its
                              individual capacity but solely as Trustee

                              By ______________________________________________
                                   Authorized Signatory

                                     C-4
<PAGE>

                               [REVERSE OF NOTE]

     This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class A-1 7.562% Asset-Backed Notes (herein called the "Class
A-1 Notes"), all issued under an Indenture dated as of June 1, 2000 (such
indenture, as supplemented or amended, herein called the "Indenture"), between
the Issuer and U.S. Bank Trust National Association, as trustee (the "Trustee,"
which term includes any successor Trustee under the Indenture) to which
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights and obligations thereunder of the Issuer, the
Trustee and the Holders of the Class A-1 Notes. The Class A-1 Notes are subject
to all terms of the Indenture. All terms used in this Note that are defined in
the Indenture, as supplemented or amended, shall have the meanings assigned to
them in or pursuant to the Indenture, as so supplemented or amended.

     The Notes are and will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture, and the Class A-1
Notes, the Class A-2 Notes and the Class A-3 Notes (collectively, the "Senior
Notes") are and will be senior in payment priority and collateral rights to the
Class M-1 Notes, the Class M-2 Notes and the Class B Notes (collectively, the
"Subordinated Notes," and together with the Senior Notes, the "Notes") to the
extent provided in the Indenture.

     Principal of the Class A-1 Notes will be payable on each Distribution Date
in an amount described on the face hereof. "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 July 17, 2000.

     As described above, the entire unpaid principal amount of this Note shall
be due and payable on the earlier of the Class A-1 Final Scheduled Distribution
Date and the Redemption Date, if any, pursuant to Section 10.01 of the
Indenture. All principal payments on the Class A Notes shall be made pro rata to
the Class A 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 made by check mailed to the Person whose
name appears as the Registered Holder of this Note (or one or more Predecessor
Notes) on the Note Register as of the close of business on each Record Date,
except that with respect to Notes registered on the Record Date in the name of
the nominee of the Depository (initially, such nominee to be Cede & Co.),
payments will be made by wire transfer in immediately available funds to the
account designated by such nominee; provided further, that any holder of 5% or
more of a Class of a Note may request payment of interest and principal by wire
transfer in immediately available funds to the account of such holder. Such
checks shall be mailed to the Person entitled thereto at the address of such
Person as it appears on the Note Register as of the applicable Record Date
without requiring that this Note be submitted for notation of payment. Any
reduction in the principal amount of this Note (or any one or more Predecessor
Notes) affected 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

                                     C-5
<PAGE>

remaining unpaid principal amount of this Note on a Distribution Date, then the
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 with respect to the
Distribution Date immediately preceding such Redemption Date by notice mailed
within five days of such Redemption Date and the amount then due and payable
shall be payable only upon presentation and surrender of this Note at the
Trustee's principal Corporate Trust Office or at the office of the Trustee's
agent appointed for such purposes located in The City of New York.

     As provided in the Indenture, the Notes may be redeemed pursuant to Section
10.01(a) of the Indenture, in whole, but not in part, at the option of the Class
C Certificateholder on any Distribution Date on or after the date on which the
Pool Scheduled Principal Balance is less than 20% of the Cutoff Date Pool
Principal Balance. If such redemption option is not exercised, then bids will be
solicited by the Trustee for the purchase of the Contracts remaining in the
Trust. If a bid is received and the amount of such bid is at least equal to the
greater of the fair market value of the Contracts or the amount equal to all
unpaid fees and advances of the Servicer plus all unpaid interest and principal
on the Notes, the Contracts will be sold and the net sale proceeds distributed
to effect early retirement of the Notes.

     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
Trustee duly executed by the Holder hereof or his attorney duly authorized in
writing, with such signature guaranteed by a commercial bank or trust company
located, or having a correspondent located, in the city in which the Corporate
Trust Office is located, or a member firm of a national securities exchange, and
such other documents as the Trustee may require, 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 Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Seller, the Servicer, the Trustee or the Owner Trustee in its
individual capacity, (ii) any owner of a beneficial interest in the Issuer or
(iii) any partner, owner, beneficiary, agent, officer, director or employee of
the Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Owner Trustee or the Trustee or of any
successor or assign of the Seller, the Servicer, the Trustee or the Owner
Trustee in its individual capacity, except as any such Person may have expressly
agreed and except that any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration
for stock, unpaid capital contribution or failure to pay any installment or call
owing to such entity.

                                     C-6
<PAGE>

     Each Noteholder will be deemed to represent that either (1) it is not
acquiring the note with the assets of a pension, profit sharing or other
employee benefit plan, or an individual retirement account or Keogh Plan,
subject to Title I of ERISA or Section 4975 of the Internal Revenue Code; or (2)
the acquisition and holding of the note will not give rise to a nonexempt
prohibited transaction exemption under Section 406(e) of ERISA or Section 4975
or the Internal Revenue Code.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a
Note Owner, a beneficial interest in a Note, covenants and agrees that by
accepting the benefits of the Indenture and such Note that such Noteholder or
Note Owner will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, 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 Related Documents.

     It is the intent and agreement of the Issuer, the Trustee, the Noteholders
and Note Owners that, for purposes of federal income, state and local income and
franchise and any other income taxes, the Notes will be treated as indebtedness
of the Issuer. Each Noteholder and Note Owner, by acceptance of this Note or, in
the case of a Note Owner, a beneficial interest in this Note, covenants and
agrees to treat this Note as indebtedness for such tax purposes and to take no
action inconsistent with such treatment.

     Prior to the due presentment for registration of transfer of this Note, the
Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the
Person in whose name this Note (as of the day of determination or as of such
other date as may be specified in the Indenture) is registered as the owner
hereof for all purposes, whether or not this Note shall be overdue, and neither
the Issuer, the Trustee nor any such agent shall be affected by notice to the
contrary.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer with the consent of the Holders of Notes representing a
majority of the Outstanding Amount of each Class of Notes. The Indenture also
contains provisions permitting the Holders of Notes representing specified
percentages of the Outstanding Amount of Notes, 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 Holders 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
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.

                                     C-7
<PAGE>

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

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

     This Note and the Indenture shall be construed in accordance with the laws
of the State of Minnesota, without reference to its conflict of law provisions,
and the obligations, rights and remedies of the parties hereunder and thereunder
shall be determined in accordance with such laws.

     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.

                                      C-8
<PAGE>

                                  ASSIGNMENT

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

__________________________

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

                        (name and address of assignee)

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

Dated: ______________
                                                                              **

                                        Signature Guaranteed:

                                        _______________________________

--------------
**   NOTE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatsoever.

                                     C-9
<PAGE>

                                                                       EXHIBIT D

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.

         CONSECO FINANCE RECREATIONAL ENTHUSIAST CONSUMER TRUST 2000-A

                          CLASS A-2 ASSET-BACKED NOTE

REGISTERED                                                            $_________
NO. R-________                                                 CUSIP NO.________

     Conseco Finance Recreational Enthusiast Consumer Trust 2000-A, 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 Cede
& Co., or registered assigns, the principal sum of [              ] payable on
each Distribution Date in an amount equal to the result obtained by multiplying
(i) a fraction the numerator of which is $__________ and the denominator of
which is $25,000,000 by (ii) the aggregate amount, if any, payable from the Note
Distribution Account in respect of principal on the Class A-2 Notes pursuant to
Section 3.01 of the Indenture; provided, however, that the entire unpaid
principal amount of this Note shall be due and payable on the earlier of
December 2010 Distribution Date (the "Class A-2 Final Scheduled Distribution
Date") and the Redemption Date, if any, pursuant to Section 10.01 of the
Indenture referred to on the reverse hereof.

     The Issuer will pay interest on this Note at the Class A-2 Interest Rate on
each Distribution Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note outstanding on the
preceding Distribution Date (after giving effect to all payments of principal
made on the preceding Distribution Date). Interest on this Note will accrue for
each Distribution Date from the most recent Distribution Date on which interest
has been paid to but excluding such Distribution Date or, if no interest has yet
been paid, from June 29, 2000. Interest will be computed on the basis of a 360-
day year consisting of twelve 30-day months. Such principal of and interest on
this Note shall be paid in the manner specified on the reverse hereof.

     The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and

                                      D-1
<PAGE>

private debts. All payments made by the Issuer with respect to this Note shall
be applied first to interest due and payable on this Note as provided above and
then to the unpaid principal of this Note.

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

     Unless the certificate of authentication hereon has been executed by the
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.

     Anything herein to the contrary notwithstanding, except as expressly
provided in the Indenture and Related Documents, none of Wilmington Trust
Company in its individual capacity, U.S. Bank Trust National Association in its
individual capacity, any owner of a beneficial interest in the Issuer, the
Seller, the Servicer, or any of their respective partners, beneficiaries,
agents, officers, directors, employees or successors or assigns shall be
personally liable for, nor shall recourse be had to any of them for, the payment
of principal of or interest on this Note or performance of, or omission to
perform, any of the covenants, obligations or indemnifications contained in the
Indenture. Each Noteholder or Note Owner, by acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, agrees that, except as
expressly provided in the Indenture and Related Documents, in the case of an
Event of Default under the Indenture, it 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.

                                      D-2
<PAGE>

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer.

Date: June ___, 2000

                                   CONSECO FINANCE RECREATIONAL ENTHUSIAST
                                   CONSUMER TRUST 2000-A

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

                                   By __________________________________________
                                        Name:
                                        Title:

                                     D-3
<PAGE>

                    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                   U.S. BANK TRUST NATIONAL ASSOCIATION, not in
                                   its individual capacity but solely as Trustee

                                   By __________________________________________
                                        Authorized Signatory

                                     D-4
<PAGE>

                               [REVERSE OF NOTE]

     This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class A-2 7.850% Asset-Backed Notes (herein called the "Class
A-2 Notes"), all issued under an Indenture dated as of June 1, 2000 (such
indenture, as supplemented or amended, herein called the "Indenture"), between
the Issuer and U.S. Bank Trust National Association, as trustee (the "Trustee,"
which term includes any successor Trustee under the Indenture) to which
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights and obligations thereunder of the Issuer, the
Trustee and the Holders of the Class A-2 Notes.  The Class A-2 Notes are subject
to all terms of the Indenture.  All terms used in this Note that are defined in
the Indenture, as supplemented or amended, shall have the meanings assigned to
them in or pursuant to the Indenture, as so supplemented or amended.

     The Notes are and will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture, and the Class A-1
Notes, the Class A-2 Notes and the Class A-3 Notes (collectively, the "Senior
Notes") are and will be senior in payment priority and collateral rights to the
Class M-1 Notes, the Class M-2 Notes and the Class B Notes (collectively, the
"Subordinated Notes," and together with the Senior Notes, the "Notes") to the
extent provided in the Indenture.

     Principal of the Class A-2 Notes will be payable on each Distribution Date
in an amount described on the face hereof.  "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 July 17, 2000.

     As described above, the entire unpaid principal amount of this Note shall
be due and payable on the earlier of the Class A-2 Final Scheduled Distribution
Date and the Redemption Date, if any, pursuant to Section 10.01 of the
Indenture.  All principal payments on the Class A Notes shall be made pro rata
to the Class A 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 made by check mailed to the Person whose
name appears as the Registered Holder of this Note (or one or more Predecessor
Notes) on the Note Register as of the close of business on each Record Date,
except that with respect to Notes registered on the Record Date in the name of
the nominee of the Depository (initially, such nominee to be Cede & Co.),
payments will be made by wire transfer in immediately available funds to the
account designated by such nominee; provided further, that any holder of 5% or
more of a Class of a Note may request payment of interest and principal by wire
transfer in immediately available funds to the account of such holder.  Such
checks shall be mailed to the Person entitled thereto at the address of such
Person as it appears on the Note Register as of the applicable Record Date
without requiring that this Note be submitted for notation of payment.  Any
reduction in the principal amount of this Note (or any one or more Predecessor
Notes) affected 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

                                      D-5
<PAGE>

remaining unpaid principal amount of this Note on a Distribution Date, then the
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 with respect to the
Distribution Date immediately preceding such Redemption Date by notice mailed
within five days of such Redemption Date and the amount then due and payable
shall be payable only upon presentation and surrender of this Note at the
Trustee's principal Corporate Trust Office or at the office of the Trustee's
agent appointed for such purposes located in The City of New York.

     As provided in the Indenture, the Notes may be redeemed pursuant to Section
10.01(a) of the Indenture, in whole, but not in part, at the option of the Class
C Certificateholder on any Distribution Date on or after the date on which the
Pool Scheduled Principal Balance is less than or equal to 20% of the Cutoff Date
Pool Principal Balance.  If such redemption option is not exercised, then bids
will be solicited by the Trustee for the purchase of the Contracts remaining in
the Trust.  If a bid is received and the amount of such bid is at least equal to
the greater of the fair market value of the Contracts or the amount equal to all
unpaid fees and advances of the Servicer plus all unpaid interest and principal
on the Notes, the Contracts will be sold and the net sale proceeds distributed
to effect early retirement of the Notes.

     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
Trustee duly executed by the Holder hereof or his attorney duly authorized in
writing, with such signature guaranteed by a commercial bank or trust company
located, or having a correspondent located, in the city in which the Corporate
Trust Office is located, or a member firm of a national securities exchange, and
such other documents as the Trustee may require, 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 Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Seller, the Servicer, the Trustee or the Owner Trustee in its
individual capacity, (ii) any owner of a beneficial interest in the Issuer or
(iii) any partner, owner, beneficiary, agent, officer, director or employee of
the Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Owner Trustee or the Trustee or of any
successor or assign of the Seller, the Servicer, the Trustee or the Owner
Trustee in its individual capacity, except as any such Person may have expressly
agreed and except that any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration
for stock, unpaid capital contribution or failure to pay any installment or call
owing to such entity.

                                      D-6
<PAGE>

     Each Noteholder will be deemed to represent that either (1) it is not
acquiring the note with the assets of a pension, profit sharing or other
employee benefit plan, or an individual retirement account or Keogh Plan,
subject to Title I of ERISA or Section 4975 of the Internal Revenue Code; or (2)
the acquisition and holding of the note will not give rise to a nonexempt
prohibited transaction exemption under Section 406(e) of ERISA or Section 4975
or the Internal Revenue Code.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a
Note Owner, a beneficial interest in a Note, covenants and agrees that by
accepting the benefits of the Indenture and such Note that such Noteholder or
Note Owner will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, 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 Related Documents.

     It is the intent and agreement of the Issuer, the Trustee, the Noteholders
and Note Owners that, for purposes of federal income, state and local income and
franchise and any other income taxes, the Notes will be treated as indebtedness
of the Issuer.  Each Noteholder and Note Owner, by acceptance of this Note or,
in the case of a Note Owner, a beneficial interest in this Note, covenants and
agrees to treat this Note as indebtedness for such tax purposes and to take no
action inconsistent with such treatment.

     Prior to the due presentment for registration of transfer of this Note, the
Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the
Person in whose name this Note (as of the day of determination or as of such
other date as may be specified in the Indenture) is registered as the owner
hereof for all purposes, whether or not this Note shall be overdue, and neither
the Issuer, the Trustee nor any such agent shall be affected by notice to the
contrary.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer with the consent of the Holders of Notes representing a
majority of the Outstanding Amount of each Class of Notes. The Indenture also
contains provisions permitting the Holders of Notes representing specified
percentages of the Outstanding Amount of Notes, 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 Holders 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 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.

                                      D-7
<PAGE>

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

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

     This Note and the Indenture shall be construed in accordance with the laws
of the State of Minnesota, without reference to its conflict of law provisions,
and the obligations, rights and remedies of the parties hereunder and thereunder
shall be determined in accordance with such laws.

     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.

                                      D-8
<PAGE>

                                  ASSIGNMENT

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

_________________________

          FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto
                                  (name and address of assignee)

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

Dated:  ______________
                                                                              **
                                        Signature Guaranteed:

                                        ___________________________

_______________
**  NOTE:  The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatsoever.

                                      D-9
<PAGE>

                                                                       EXHIBIT E

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.

         CONSECO FINANCE RECREATIONAL ENTHUSIAST CONSUMER TRUST 2000-A

                          CLASS A-3 ASSET-BACKED NOTE

REGISTERED                                                             $________
NO. R-________                                                 CUSIP NO.________

     Conseco Finance Recreational Enthusiast Consumer Trust 2000-A, 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 Cede
& Co., or registered assigns, the principal sum of [                 ] payable
on each Distribution Date in an amount equal to the result obtained by
multiplying (i) a fraction the numerator of which is $__________ and the
denominator of which is $36,600,000 by (ii) the aggregate amount, if any,
payable from the Note Distribution Account in respect of principal on the Class
A-3 Notes pursuant to Section 3.01 of the Indenture; provided, however, that the
entire unpaid principal amount of this Note shall be due and payable on the
earlier of November 2020 Distribution Date (the "Class A-3 Final Scheduled
Distribution Date") and the Redemption Date, if any, pursuant to Section 10.01
of the Indenture referred to on the reverse hereof.

     The Issuer will pay interest on this Note at the Class A-3 Interest Rate on
each Distribution Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note outstanding on the
preceding Distribution Date (after giving effect to all payments of principal
made on the preceding Distribution Date).  Interest on this Note will accrue for
each Distribution Date from the most recent Distribution Date on which interest
has been paid to but excluding such Distribution Date or, if no interest has yet
been paid, from June 29, 2000.  Interest will be computed on the basis of a 360-
day year consisting of twelve 30-day months.  Such principal of and interest on
this Note shall be paid in the manner specified on the reverse hereof.

     The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and

                                      E-1
<PAGE>

private debts. All payments made by the Issuer with respect to this Note shall
be applied first to interest due and payable on this Note as provided above and
then to the unpaid principal of this Note.

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

     Unless the certificate of authentication hereon has been executed by the
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.

     Anything herein to the contrary notwithstanding, except as expressly
provided in the Indenture and Related Documents, none of Wilmington Trust
Company in its individual capacity, U.S. Bank Trust National Association in its
individual capacity, any owner of a beneficial interest in the Issuer, the
Seller, the Servicer, or any of their respective partners, beneficiaries,
agents, officers, directors, employees or successors or assigns shall be
personally liable for, nor shall recourse be had to any of them for, the payment
of principal of or interest on this Note or performance of, or omission to
perform, any of the covenants, obligations or indemnifications contained in the
Indenture.  Each Noteholder or Note Owner, by acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, agrees that, except as
expressly provided in the Indenture and Related Documents, in the case of an
Event of Default under the Indenture, it 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.

                                      E-2
<PAGE>

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer.

Date:  June ___, 2000

                                        CONSECO FINANCE RECREATIONAL ENTHUSIAST
                                        CONSUMER TRUST 2000-A

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

                                        By ___________________________________
                                             Name:
                                             Title:

                                      E-3
<PAGE>

                    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                              U.S. BANK TRUST NATIONAL ASSOCIATION,
                              not in its individual capacity but solely as
                              Trustee

                              By _________________________________________
                                     Authorized Signatory

                                      E-4
<PAGE>

                               [REVERSE OF NOTE]

     This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class A-3 8.110% Asset-Backed Notes (herein called the "Class
A-3 Notes"), all issued under an Indenture dated as of June 1, 2000 (such
indenture, as supplemented or amended, herein called the "Indenture"), between
the Issuer and U.S. Bank Trust National Association, as trustee (the "Trustee,"
which term includes any successor Trustee under the Indenture) to which
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights and obligations thereunder of the Issuer, the
Trustee and the Holders of the Class A-3 Notes.  The Class A-3 Notes are subject
to all terms of the Indenture.  All terms used in this Note that are defined in
the Indenture, as supplemented or amended, shall have the meanings assigned to
them in or pursuant to the Indenture, as so supplemented or amended.

     The Notes are and will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture, and the Class A-1
Notes, the Class A-2 Notes and the Class A-3 Notes (collectively, the "Senior
Notes") are and will be senior in payment priority and collateral rights to the
Class M-1 Notes, the Class M-2 Notes and the Class B Notes (collectively, the
"Subordinated Notes," and together with the Senior Notes, the "Notes") to the
extent provided in the Indenture.

     Principal of the Class A-3 Notes will be payable on each Distribution Date
in an amount described on the face hereof.  "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 July 17, 2000.

     As described above, the entire unpaid principal amount of this Note shall
be due and payable on the earlier of the Class A-3 Final Scheduled Distribution
Date and the Redemption Date, if any, pursuant to Section 10.01 of the
Indenture.  All principal payments on the Class A Notes shall be made pro rata
to the Class A 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 made by check mailed to the Person whose
name appears as the Registered Holder of this Note (or one or more Predecessor
Notes) on the Note Register as of the close of business on each Record Date,
except that with respect to Notes registered on the Record Date in the name of
the nominee of the Depository (initially, such nominee to be Cede & Co.),
payments will be made by wire transfer in immediately available funds to the
account designated by such nominee; provided further, that any holder of 5% or
more of a Class of a Note may request payment of interest and principal by wire
transfer in immediately available funds to the account of such holder.  Such
checks shall be mailed to the Person entitled thereto at the address of such
Person as it appears on the Note Register as of the applicable Record Date
without requiring that this Note be submitted for notation of payment.  Any
reduction in the principal amount of this Note (or any one or more Predecessor
Notes) affected 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

                                     E-5
<PAGE>

remaining unpaid principal amount of this Note on a Distribution Date, then the
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 with respect to the
Distribution Date immediately preceding such Redemption Date by notice mailed
within five days of such Redemption Date and the amount then due and payable
shall be payable only upon presentation and surrender of this Note at the
Trustee's principal Corporate Trust Office or at the office of the Trustee's
agent appointed for such purposes located in The City of New York.

     As provided in the Indenture, the Notes may be redeemed pursuant to Section
10.01(a) of the Indenture, in whole, but not in part, at the option of the Class
C Certificateholder on any Distribution Date on or after the date on which the
Pool Scheduled Principal Balance is less than or equal to 20% of the Cutoff Date
Pool Principal Balance.  If such redemption option is not exercised, then bids
will be solicited by the Trustee for the purchase of the Contracts remaining in
the Trust.  If a bid is received and the amount of such bid is at least equal to
the greater of the fair market value of the Contracts or the amount equal to all
unpaid fees and advances of the Servicer plus all unpaid interest and principal
on the Notes, the Contracts will be sold and the net sale proceeds distributed
to effect early retirement of the Notes.

     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
Trustee duly executed by the Holder hereof or his attorney duly authorized in
writing, with such signature guaranteed by a commercial bank or trust company
located, or having a correspondent located, in the city in which the Corporate
Trust Office is located, or a member firm of a national securities exchange, and
such other documents as the Trustee may require, 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 Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Seller, the Servicer, the Trustee or the Owner Trustee in its
individual capacity, (ii) any owner of a beneficial interest in the Issuer or
(iii) any partner, owner, beneficiary, agent, officer, director or employee of
the Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Owner Trustee or the Trustee or of any
successor or assign of the Seller, the Servicer, the Trustee or the Owner
Trustee in its individual capacity, except as any such Person may have expressly
agreed and except that any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration
for stock, unpaid capital contribution or failure to pay any installment or call
owing to such entity.

                                     E-6
<PAGE>

     Each Noteholder will be deemed to represent that either (1) it is not
acquiring the note with the assets of a pension, profit sharing or other
employee benefit plan, or an individual retirement account or Keogh Plan,
subject to Title I of ERISA or Section 4975 of the Internal Revenue Code; or (2)
the acquisition and holding of the note will not give rise to a nonexempt
prohibited transaction exemption under Section 406(e) of ERISA or Section 4975
or the Internal Revenue Code.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a
Note Owner, a beneficial interest in a Note, covenants and agrees that by
accepting the benefits of the Indenture and such Note that such Noteholder or
Note Owner will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, 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 Related Documents.

     It is the intent and agreement of the Issuer, the Trustee, the Noteholders
and Note Owners that, for purposes of federal income, state and local income and
franchise and any other income taxes, the Notes will be treated as indebtedness
of the Issuer.  Each Noteholder and Note Owner, by acceptance of this Note or,
in the case of a Note Owner, a beneficial interest in this Note, covenants and
agrees to treat this Note as indebtedness for such tax purposes and to take no
action inconsistent with such treatment.

     Prior to the due presentment for registration of transfer of this Note, the
Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the
Person in whose name this Note (as of the day of determination or as of such
other date as may be specified in the Indenture) is registered as the owner
hereof for all purposes, whether or not this Note shall be overdue, and neither
the Issuer, the Trustee nor any such agent shall be affected by notice to the
contrary.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer with the consent of the Holders of Notes representing a
majority of the Outstanding Amount of each Class of Notes. The Indenture also
contains provisions permitting the Holders of Notes representing specified
percentages of the Outstanding Amount of Notes, 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 Holders 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 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.

                                     E-7
<PAGE>

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

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

     This Note and the Indenture shall be construed in accordance with the laws
of the State of Minnesota, without reference to its conflict of law provisions,
and the obligations, rights and remedies of the parties hereunder and thereunder
shall be determined in accordance with such laws.

     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.

                                      E-8
<PAGE>

                                  ASSIGNMENT

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

_________________________

          FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto
                         (name and address of assignee)

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

Dated:  ______________
                                                                             **
                                      Signature Guaranteed:

                                      ______________________________________

_________________
**  NOTE:  The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatsoever.

                                     E-9
<PAGE>

                                                                       EXHIBIT F

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.

         CONSECO FINANCE RECREATIONAL ENTHUSIAST CONSUMER TRUST 2000-A

                          CLASS M-1 ASSET-BACKED NOTE

REGISTERED                                                             $________
NO.R-________                                                  CUSIP NO.________

     Conseco Finance Recreational Enthusiast Consumer Trust 2000-A, 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 Cede
& Co., or registered assigns, the principal sum of [           ] payable on each
Distribution Date in an amount equal to the result obtained by multiplying (i) a
fraction the numerator of which is $__________ and the denominator of which is
$14,000,000 by (ii) the aggregate amount, if any, payable from the Note
Distribution Account in respect of principal on the Class M-1 Notes pursuant to
Section 3.01 of the Indenture; provided, however, that the entire unpaid
principal amount of this Note shall be due and payable on the earlier of
November 2020 Distribution Date (the "Class M-1 Final Scheduled Distribution
Date") and the Redemption Date, if any, pursuant to Section 10.01 of the
Indenture referred to on the reverse hereof.

     The Issuer will pay interest on this Note at the Class M-1 Interest Rate on
each Distribution Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note outstanding on the
preceding Distribution Date (after giving effect to all payments of principal
made on the preceding Distribution Date).  Interest on this Note will accrue for
each Distribution Date from the most recent Distribution Date on which interest
has been paid to but excluding such Distribution Date or, if no interest has yet
been paid, from June 29, 2000.  Interest will be computed on the basis of actual
days elapsed and a year of 360 days.  Such principal of and interest on this
Note, a 360-day year consisting of twelve 30-day months.

     The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and

                                     F-1
<PAGE>

private debts. All payments made by the Issuer with respect to this Note shall
be applied first to interest due and payable on this Note as provided above and
then to the unpaid principal of this Note.

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

     Unless the certificate of authentication hereon has been executed by the
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.

     Anything herein to the contrary notwithstanding, except as expressly
provided in the Indenture and Related Documents, none of Wilmington Trust
Company in its individual capacity, U.S. Bank Trust National Association in its
individual capacity, any owner of a beneficial interest in the Issuer, the
Seller, the Servicer, or any of their respective partners, beneficiaries,
agents, officers, directors, employees or successors or assigns shall be
personally liable for, nor shall recourse be had to any of them for, the payment
of principal of or interest on this Note or performance of, or omission to
perform, any of the covenants, obligations or indemnifications contained in the
Indenture.  Each Noteholder or Note Owner, by acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, agrees that, except as
expressly provided in the Indenture and Related Documents, in the case of an
Event of Default under the Indenture, it 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.

                                     F-2
<PAGE>

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer.

Date:  June ___, 2000

                              CONSECO FINANCE RECREATIONAL
                              ENTHUSIAST CONSUMER TRUST 2000-A

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

                              By ______________________________________
                                  Name:
                                  Title:

                                     F-3
<PAGE>

                    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                     U.S. BANK TRUST NATIONAL ASSOCIATION,
                                     not in its individual capacity but
                                     solely as Trustee

                                     By __________________________________
                                            Authorized Signatory

                                     F-4
<PAGE>

                         [REVERSE OF NOTE]

     This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class M-1 8.480% Asset-Backed Notes (herein called the "Class
M-1 Notes"), all issued under an Indenture dated as of June 1, 2000 (such
indenture, as supplemented or amended, herein called the "Indenture"), between
the Issuer and U.S. Bank Trust National Association, as trustee (the "Trustee,"
which term includes any successor Trustee under the Indenture) to which
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights and obligations thereunder of the Issuer, the
Trustee and the Holders of the Class M-1 Notes.  The Class M-1 Notes are subject
to all terms of the Indenture.  All terms used in this Note that are defined in
the Indenture, as supplemented or amended, shall have the meanings assigned to
them in or pursuant to the Indenture, as so supplemented or amended.

     The Notes are and will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture, and the Class A-1
Notes, the Class A-2 Notes and the Class A-3 Notes (collectively, the "Senior
Notes") are and will be senior in payment priority and collateral rights to the
Class M-1 Notes, the Class M-2 Notes and the Class B Notes (collectively, the
"Subordinated Notes," and together with the Senior Notes, the "Notes") to the
extent provided in the Indenture.

     Principal of the Class M-1 Notes will be payable on each Distribution Date
in an amount described on the face hereof.  "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 July 17, 2000.

     As described above, the entire unpaid principal amount of this Note shall
be due and payable on the earlier of the Class M-1 Final Scheduled Distribution
Date and the Redemption Date, if any, pursuant to Section 10.01 of the
Indenture.  All principal payments on the Class M-1 Notes shall be made pro rata
to the Class M-1 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 made by check mailed to the Person whose
name appears as the Registered Holder of this Note (or one or more Predecessor
Notes) on the Note Register as of the close of business on each Record Date,
except that with respect to Notes registered on the Record Date in the name of
the nominee of the Depository (initially, such nominee to be Cede & Co.),
payments will be made by wire transfer in immediately available funds to the
account designated by such nominee; provided further, that any holder of 5% or
more of a Class of a Note may request payment of interest and principal by wire
transfer in immediately available funds to the account of such holder.  Such
checks shall be mailed to the Person entitled thereto at the address of such
Person as it appears on the Note Register as of the applicable Record Date
without requiring that this Note be submitted for notation of payment.  Any
reduction in the principal amount of this Note (or any one or more Predecessor
Notes) affected 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

                                     F-5
<PAGE>

remaining unpaid principal amount of this Note on a Distribution Date, then the
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 with respect to the
Distribution Date immediately preceding such Redemption Date by notice mailed
within five days of such Redemption Date and the amount then due and payable
shall be payable only upon presentation and surrender of this Note at the
Trustee's principal Corporate Trust Office or at the office of the Trustee's
agent appointed for such purposes located in The City of New York.

     As provided in the Indenture, the Notes may be redeemed pursuant to Section
10.01(a) of the Indenture, in whole, but not in part, at the option of the Class
C Certificateholder on any Distribution Date on or after the date on which the
Pool Scheduled Principal Balance is less than or equal to 20% of the Cutoff Date
Pool Principal Balance.  If such redemption option is not exercised, then bids
will be solicited by the Trustee for the purchase of the Contracts remaining in
the Trust.  If a bid is received and the amount of such bid is at least equal to
the greater of the fair market value of the Contracts or the amount equal to all
unpaid fees and advances of the Servicer plus all unpaid interest and principal
on the Notes, the Contracts will be sold and the net sale proceeds distributed
to effect early retirement of the Notes.

     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
Trustee duly executed by the Holder hereof or his attorney duly authorized in
writing, with such signature guaranteed by a commercial bank or trust company
located, or having a correspondent located, in the city in which the Corporate
Trust Office is located, or a member firm of a national securities exchange, and
such other documents as the Trustee may require, 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 Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Seller, the Servicer, the Trustee or the Owner Trustee in its
individual capacity, (ii) any owner of a beneficial interest in the Issuer or
(iii) any partner, owner, beneficiary, agent, officer, director or employee of
the Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Owner Trustee or the Trustee or of any
successor or assign of the Seller, the Servicer, the Trustee or the Owner
Trustee in its individual capacity, except as any such Person may have expressly
agreed and except that any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration
for stock, unpaid capital contribution or failure to pay any installment or call
owing to such entity.

                                F-6
<PAGE>

     Each Noteholder will be deemed to represent that either (1) it is not
acquiring the note with the assets of a pension, profit sharing or other
employee benefit plan, or an individual retirement account or Keogh Plan,
subject to Title I of ERISA or Section 4975 of the Internal Revenue Code; or (2)
the acquisition and holding of the note will not give rise to a nonexempt
prohibited transaction exemption under Section 406(e) of ERISA or Section 4975
or the Internal Revenue Code.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a
Note Owner, a beneficial interest in a Note, covenants and agrees that by
accepting the benefits of the Indenture and such Note that such Noteholder or
Note Owner will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, 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 Related Documents.

     It is the intent and agreement of the Issuer, the Trustee, the Noteholders
and Note Owners that, for purposes of federal income, state and local income and
franchise and any other income taxes, the Notes will be treated as indebtedness
of the Issuer.  Each Noteholder and Note Owner, by acceptance of this Note or,
in the case of a Note Owner, a beneficial interest in this Note, covenants and
agrees to treat this Note as indebtedness for such tax purposes and to take no
action inconsistent with such treatment.

     Prior to the due presentment for registration of transfer of this Note, the
Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the
Person in whose name this Note (as of the day of determination or as of such
other date as may be specified in the Indenture) is registered as the owner
hereof for all purposes, whether or not this Note shall be overdue, and neither
the Issuer, the Trustee nor any such agent shall be affected by notice to the
contrary.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer with the consent of the Holders of Notes representing a
majority of the Outstanding Amount of each Class of Notes. The Indenture also
contains provisions permitting the Holders of Notes representing specified
percentages of the Outstanding Amount of Notes, 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 Holders 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 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.

                                     F-7
<PAGE>

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

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

     This Note and the Indenture shall be construed in accordance with the laws
of the State of Minnesota, without reference to its conflict of law provisions,
and the obligations, rights and remedies of the parties hereunder and thereunder
shall be determined in accordance with such laws.

     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.

                                     F-8
<PAGE>

                                  ASSIGNMENT

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

___________________

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

                        (name and address of assignee)

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

Dated:  ______________
                                                                         **
                                         Signature Guaranteed:

                                         ____________________________

___________
**  NOTE:  The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatsoever.

                                     F-9
<PAGE>

                                                                       EXHIBIT G

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.

         CONSECO FINANCE RECREATIONAL ENTHUSIAST CONSUMER TRUST 2000-A

                          CLASS M-2 ASSET-BACKED NOTE

REGISTERED                                                             $________
NO. R-________                                                 CUSIP NO.________

     Conseco Finance Recreational Enthusiast Consumer Trust 2000-A, 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 Cede
& Co., or registered assigns, the principal sum of [             ] payable on
each Distribution Date in an amount equal to the result obtained by multiplying
(i) a fraction the numerator of which is $__________ and the denominator of
which is $11,200,000 by (ii) the aggregate amount, if any, payable from the Note
Distribution Account in respect of principal on the Class M-2 Notes pursuant to
Section 3.01 of the Indenture; provided, however, that the entire unpaid
principal amount of this Note shall be due and payable on the earlier of
November 2020 Distribution Date (the "Class M-2 Final Scheduled Distribution
Date") and the Redemption Date, if any, pursuant to Section 10.01 of the
Indenture referred to on the reverse hereof.

     The Issuer will pay interest on this Note at the Class M-2 Interest Rate on
each Distribution Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note outstanding on the
preceding Distribution Date (after giving effect to all payments of principal
made on the preceding Distribution Date).  Interest on this Note will accrue for
each Distribution Date from the most recent Distribution Date on which interest
has been paid to but excluding such Distribution Date or, if no interest has yet
been paid, from June 29, 2000.  Interest will be computed on the basis of actual
days elapsed and a year of 360 days.  Such principal of and interest on this
Note, a 360-day year consisting of twelve 30-day months.

     The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and

                                      G-1
<PAGE>

private debts. All payments made by the Issuer with respect to this Note shall
be applied first to interest due and payable on this Note as provided above and
then to the unpaid principal of this Note.

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

     Unless the certificate of authentication hereon has been executed by the
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.

     Anything herein to the contrary notwithstanding, except as expressly
provided in the Indenture and Related Documents, none of Wilmington Trust
Company in its individual capacity, U.S. Bank Trust National Association in its
individual capacity, any owner of a beneficial interest in the Issuer, the
Seller, the Servicer, or any of their respective partners, beneficiaries,
agents, officers, directors, employees or successors or assigns shall be
personally liable for, nor shall recourse be had to any of them for, the payment
of principal of or interest on this Note or performance of, or omission to
perform, any of the covenants, obligations or indemnifications contained in the
Indenture.  Each Noteholder or Note Owner, by acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, agrees that, except as
expressly provided in the Indenture and Related Documents, in the case of an
Event of Default under the Indenture, it 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.

                                      G-2
<PAGE>

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer.

Date: June ___, 2000

                                  CONSECO FINANCE RECREATIONAL
                                  ENTHUSIAST CONSUMER TRUST 2000-A

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

                                  By__________________________________________
                                      Name:
                                      Title:

                                     G-3
<PAGE>

                    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                     U.S. BANK TRUST NATIONAL ASSOCIATION,
                                     not in its individual capacity but
                                     solely as Trustee

                                     By __________________________________
                                             Authorized Signatory

                                     G-4
<PAGE>

                               [REVERSE OF NOTE]

     This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class M-2 8.960% Asset-Backed Notes (herein called the "Class
M-2 Notes"), all issued under an Indenture dated as of June 1, 2000 (such
indenture, as supplemented or amended, herein called the "Indenture"), between
the Issuer and U.S. Bank Trust National Association, as trustee (the "Trustee,"
which term includes any successor Trustee under the Indenture) to which
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights and obligations thereunder of the Issuer, the
Trustee and the Holders of the Class M-2 Notes.  The Class M-2 Notes are subject
to all terms of the Indenture.  All terms used in this Note that are defined in
the Indenture, as supplemented or amended, shall have the meanings assigned to
them in or pursuant to the Indenture, as so supplemented or amended.

     The Notes are and will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture, and the Class A-1
Notes, the Class A-2 Notes and the Class A-3 Notes (collectively, the "Senior
Notes") are and will be senior in payment priority and collateral rights to the
Class M-1 Notes, the Class M-2 Notes and the Class B Notes (collectively, the
"Subordinated Notes," and together with the Senior Notes, the "Notes") to the
extent provided in the Indenture.

     Principal of the Class M-2 Notes will be payable on each Distribution Date
in an amount described on the face hereof.  "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 July 17, 2000.

     As described above, the entire unpaid principal amount of this Note shall
be due and payable on the earlier of the Class M-2 Final Scheduled Distribution
Date and the Redemption Date, if any, pursuant to Section 10.01 of the
Indenture.  All principal payments on the Class M-2 Notes shall be made pro rata
to the Class M-2 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 made by check mailed to the Person whose
name appears as the Registered Holder of this Note (or one or more Predecessor
Notes) on the Note Register as of the close of business on each Record Date,
except that with respect to Notes registered on the Record Date in the name of
the nominee of the Depository (initially, such nominee to be Cede & Co.),
payments will be made by wire transfer in immediately available funds to the
account designated by such nominee; provided further, that any holder of 5% or
more of a Class of a Note may request payment of interest and principal by wire
transfer in immediately available funds to the account of such holder.  Such
checks shall be mailed to the Person entitled thereto at the address of such
Person as it appears on the Note Register as of the applicable Record Date
without requiring that this Note be submitted for notation of payment.  Any
reduction in the principal amount of this Note (or any one or more Predecessor
Notes) affected 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

                                      G-5
<PAGE>

remaining unpaid principal amount of this Note on a Distribution Date, then the
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 with respect to the
Distribution Date immediately preceding such Redemption Date by notice mailed
within five days of such Redemption Date and the amount then due and payable
shall be payable only upon presentation and surrender of this Note at the
Trustee's principal Corporate Trust Office or at the office of the Trustee's
agent appointed for such purposes located in The City of New York.

     As provided in the Indenture, the Notes may be redeemed pursuant to Section
10.01(a) of the Indenture, in whole, but not in part, at the option of the Class
C Certificateholder on any Distribution Date on or after the date on which the
Pool Scheduled Principal Balance is less than or equal to 20% of the Cutoff Date
Pool Principal Balance.  If such redemption option is not exercised, then bids
will be solicited by the Trustee for the purchase of the Contracts remaining in
the Trust.  If a bid is received and the amount of such bid is at least equal to
the greater of the fair market value of the Contracts or the amount equal to all
unpaid fees and advances of the Servicer plus all unpaid interest and principal
on the Notes, the Contracts will be sold and the net sale proceeds distributed
to effect early retirement of the Notes.

     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
Trustee duly executed by the Holder hereof or his attorney duly authorized in
writing, with such signature guaranteed by a commercial bank or trust company
located, or having a correspondent located, in the city in which the Corporate
Trust Office is located, or a member firm of a national securities exchange, and
such other documents as the Trustee may require, 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 Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Seller, the Servicer, the Trustee or the Owner Trustee in its
individual capacity, (ii) any owner of a beneficial interest in the Issuer or
(iii) any partner, owner, beneficiary, agent, officer, director or employee of
the Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Owner Trustee or the Trustee or of any
successor or assign of the Seller, the Servicer, the Trustee or the Owner
Trustee in its individual capacity, except as any such Person may have expressly
agreed and except that any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration
for stock, unpaid capital contribution or failure to pay any installment or call
owing to such entity.

                                      G-6
<PAGE>

     Each Noteholder will be deemed to represent that either (1) it is not
acquiring the note with the assets of a pension, profit sharing or other
employee benefit plan, or an individual retirement account or Keogh Plan,
subject to Title I of ERISA or Section 4975 of the Internal Revenue Code; or (2)
the acquisition and holding of the note will not give rise to a nonexempt
prohibited transaction exemption under Section 406(e) of ERISA or Section 4975
or the Internal Revenue Code.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a
Note Owner, a beneficial interest in a Note, covenants and agrees that by
accepting the benefits of the Indenture and such Note that such Noteholder or
Note Owner will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, 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 Related Documents.

     It is the intent and agreement of the Issuer, the Trustee, the Noteholders
and Note Owners that, for purposes of federal income, state and local income and
franchise and any other income taxes, the Notes will be treated as indebtedness
of the Issuer.  Each Noteholder and Note Owner, by acceptance of this Note or,
in the case of a Note Owner, a beneficial interest in this Note, covenants and
agrees to treat this Note as indebtedness for such tax purposes and to take no
action inconsistent with such treatment.

     Prior to the due presentment for registration of transfer of this Note, the
Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the
Person in whose name this Note (as of the day of determination or as of such
other date as may be specified in the Indenture) is registered as the owner
hereof for all purposes, whether or not this Note shall be overdue, and neither
the Issuer, the Trustee nor any such agent shall be affected by notice to the
contrary.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer with the consent of the Holders of Notes representing a
majority of the Outstanding Amount of each Class of Notes. The Indenture also
contains provisions permitting the Holders of Notes representing specified
percentages of the Outstanding Amount of Notes, 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 Holders 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 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.

                                      G-7
<PAGE>

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

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

     This Note and the Indenture shall be construed in accordance with the laws
of the State of Minnesota, without reference to its conflict of law provisions,
and the obligations, rights and remedies of the parties hereunder and thereunder
shall be determined in accordance with such laws.

     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.

                                      G-8
<PAGE>

                                  ASSIGNMENT

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

_________________________

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

                        (name and address of assignee)

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

Dated:  ______________
                                                                              **

                                             Signature Guaranteed:

                                             _______________________________

_____________
**  NOTE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatsoever.

                                      G-9
<PAGE>

                                                                       EXHIBIT H

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.

         CONSECO FINANCE Recreational Enthusiast Consumer Trust 2000-A

                           CLASS B ASSET-BACKED NOTE

REGISTERED                                                             $________
NO. R-________                                                 CUSIP NO.________

     Conseco Finance Recreational Enthusiast Consumer Trust 2000-A, 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 Cede
& Co., or registered assigns, the principal sum of [                ] payable
on each Distribution Date in an amount equal to the result obtained by
multiplying (i) a fraction the numerator of which is $___________ and the
denominator of which is $16,800,000 by (ii) the aggregate amount, if any,
payable from the Note Distribution Account in respect of principal on the Class
B Notes pursuant to Section 3.01 of the Indenture; provided, however, that the
entire unpaid principal amount of this Note shall be due and payable on the
earlier of November 2020 Distribution Date (the "Class B Final Scheduled
Distribution Date") and the Redemption Date, if any, pursuant to Section 10.01
of the Indenture referred to on the reverse hereof.

     The Issuer will pay interest on this Note at the Class B Interest Rate on
each Distribution Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note outstanding on the
preceding Distribution Date (after giving effect to all payments of principal
made on the preceding Distribution Date).  Interest on this Note will accrue for
each Distribution Date from the most recent Distribution Date on which interest
has been paid to but excluding such Distribution Date or, if no interest has yet
been paid, from June 29, 2000.  Interest will be computed on the basis of a 360-
day year consisting of twelve 30-day months.  Such principal of and interest on
this Note shall be paid in the manner specified on the reverse hereof.

     The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and

                                      H-1
<PAGE>

private debts. All payments made by the Issuer with respect to this Note shall
be applied first to interest due and payable on this Note as provided above and
then to the unpaid principal of this Note.

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

     Unless the certificate of authentication hereon has been executed by the
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.

     Anything herein to the contrary notwithstanding, except as expressly
provided in the Indenture and Related Documents, none of Wilmington Trust
Company in its individual capacity, U.S. Bank Trust National Association in its
individual capacity, any owner of a beneficial interest in the Issuer, the
Seller, the Servicer, or any of their respective partners, beneficiaries,
agents, officers, directors, employees or successors or assigns shall be
personally liable for, nor shall recourse be had to any of them for, the payment
of principal of or interest on this Note or performance of, or omission to
perform, any of the covenants, obligations or indemnifications contained in the
Indenture.  Each Noteholder or Note Owner, by acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, agrees that, except as
expressly provided in the Indenture and Related Documents, in the case of an
Event of Default under the Indenture, it 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.

                                     H-2
<PAGE>

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer.

Date:  June ___, 2000

                              CONSECO FINANCE RECREATIONAL
                              ENTHUSIAST CONSUMER TRUST 2000-A

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

                              By _______________________________________________
                                   Name:
                                   Title:

                                      H-3
<PAGE>

                    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                              U.S. BANK TRUST NATIONAL ASSOCIATION, not in its
                              individual capacity but solely as Trustee

                              By __________________________________________
                                           Authorized Signatory

                                      H-4
<PAGE>

                               [REVERSE OF NOTE]

     This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class A-1 7.562% Asset-Backed Notes (herein called the "Class
A-1 Notes"), all issued under an Indenture dated as of June 1, 2000 (such
indenture, as supplemented or amended, herein called the "Indenture"), between
the Issuer and U.S. Bank Trust National Association, as trustee (the "Trustee,"
which term includes any successor Trustee under the Indenture) to which
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights and obligations thereunder of the Issuer, the
Trustee and the Holders of the Class A-1 Notes.  The Class A-1 Notes are subject
to all terms of the Indenture.  All terms used in this Note that are defined in
the Indenture, as supplemented or amended, shall have the meanings assigned to
them in or pursuant to the Indenture, as so supplemented or amended.

     The Notes are and will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture, and the Class A-1
Notes, the Class A-2 Notes and the Class A-3 Notes (collectively, the "Senior
Notes") are and will be senior in payment priority and collateral rights to the
Class M-1 Notes, the Class M-2 Notes and the Class B Notes (collectively, the
"Subordinated Notes," and together with the Senior Notes, the "Notes") to the
extent provided in the Indenture.

     Principal of the Class A-1 Notes will be payable on each Distribution Date
in an amount described on the face hereof.  "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 July 17, 2000.

     As described above, the entire unpaid principal amount of this Note shall
be due and payable on the earlier of the Class A-1 Final Scheduled Distribution
Date and the Redemption Date, if any, pursuant to Section 10.01 of the
Indenture.  All principal payments on the Class A Notes shall be made pro rata
to the Class A 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 made by check mailed to the Person whose
name appears as the Registered Holder of this Note (or one or more Predecessor
Notes) on the Note Register as of the close of business on each Record Date,
except that with respect to Notes registered on the Record Date in the name of
the nominee of the Depository (initially, such nominee to be Cede & Co.),
payments will be made by wire transfer in immediately available funds to the
account designated by such nominee; provided further, that any holder of 5% or
more of a Class of a Note may request payment of interest and principal by wire
transfer in immediately available funds to the account of such holder.  Such
checks shall be mailed to the Person entitled thereto at the address of such
Person as it appears on the Note Register as of the applicable Record Date
without requiring that this Note be submitted for notation of payment.  Any
reduction in the principal amount of this Note (or any one or more Predecessor
Notes) affected 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

                                      H-5
<PAGE>

remaining unpaid principal amount of this Note on a Distribution Date, then the
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 with respect to the
Distribution Date immediately preceding such Redemption Date by notice mailed
within five days of such Redemption Date and the amount then due and payable
shall be payable only upon presentation and surrender of this Note at the
Trustee's principal Corporate Trust Office or at the office of the Trustee's
agent appointed for such purposes located in The City of New York.

     As provided in the Indenture, the Notes may be redeemed pursuant to Section
10.01(a) of the Indenture, in whole, but not in part, at the option of the Class
C Certificateholder on any Distribution Date on or after the date on which the
Pool Scheduled Principal Balance is less than 20% of the Cutoff Date Pool
Principal Balance.  If such redemption option is not exercised, then bids will
be solicited by the Trustee for the purchase of the Contracts remaining in the
Trust.  If a bid is received and the amount of such bid is at least equal to the
greater of the fair market value of the Contracts or the amount equal to all
unpaid fees and advances of the Servicer plus all unpaid interest and principal
on the Notes, the Contracts will be sold and the net sale proceeds distributed
to effect early retirement of the Notes.

     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
Trustee duly executed by the Holder hereof or his attorney duly authorized in
writing, with such signature guaranteed by a commercial bank or trust company
located, or having a correspondent located, in the city in which the Corporate
Trust Office is located, or a member firm of a national securities exchange, and
such other documents as the Trustee may require, 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 Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Seller, the Servicer, the Trustee or the Owner Trustee in its
individual capacity, (ii) any owner of a beneficial interest in the Issuer or
(iii) any partner, owner, beneficiary, agent, officer, director or employee of
the Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Owner Trustee or the Trustee or of any
successor or assign of the Seller, the Servicer, the Trustee or the Owner
Trustee in its individual capacity, except as any such Person may have expressly
agreed and except that any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration
for stock, unpaid capital contribution or failure to pay any installment or call
owing to such entity.

                                      H-6
<PAGE>

     Each Noteholder will be deemed to represent that either (1) it is not
acquiring the note with the assets of a pension, profit sharing or other
employee benefit plan, or an individual retirement account or Keogh Plan,
subject to Title I of ERISA or Section 4975 of the Internal Revenue Code; or (2)
the acquisition and holding of the note will not give rise to a nonexempt
prohibited transaction exemption under Section 406(e) of ERISA or Section 4975
or the Internal Revenue Code.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a
Note Owner, a beneficial interest in a Note, covenants and agrees that by
accepting the benefits of the Indenture and such Note that such Noteholder or
Note Owner will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, 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 Related Documents.

     It is the intent and agreement of the Issuer, the Trustee, the Noteholders
and Note Owners that, for purposes of federal income, state and local income and
franchise and any other income taxes, the Notes will be treated as indebtedness
of the Issuer.  Each Noteholder and Note Owner, by acceptance of this Note or,
in the case of a Note Owner, a beneficial interest in this Note, covenants and
agrees to treat this Note as indebtedness for such tax purposes and to take no
action inconsistent with such treatment.

     Prior to the due presentment for registration of transfer of this Note, the
Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the
Person in whose name this Note (as of the day of determination or as of such
other date as may be specified in the Indenture) is registered as the owner
hereof for all purposes, whether or not this Note shall be overdue, and neither
the Issuer, the Trustee nor any such agent shall be affected by notice to the
contrary.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer with the consent of the Holders of Notes representing a
majority of the Outstanding Amount of each Class of Notes. The Indenture also
contains provisions permitting the Holders of Notes representing specified
percentages of the Outstanding Amount of Notes, 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 Holders 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 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.

                                      H-7
<PAGE>

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

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

     This Note and the Indenture shall be construed in accordance with the laws
of the State of Minnesota, without reference to its conflict of law provisions,
and the obligations, rights and remedies of the parties hereunder and thereunder
shall be determined in accordance with such laws.

     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.

                                      H-8
<PAGE>

                                  ASSIGNMENT

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

_________________________

          FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto
                        (name and address of assignee)

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

Dated:  ______________
                                                                              **
                                             Signature Guaranteed:

                                             _______________________________

_____________
**  NOTE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatsoever.

                                      H-9

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