Document:

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                                                                     Exhibit 4.2

                        BAY VIEW TRANSACTION CORPORATION
                                   Transferor

                         BAY VIEW ACCEPTANCE CORPORATION
                                    Servicer

                       [_________________________________]
                                Back-up Servicer

                       [_________________________________]
                                Standby Servicer

                        _________________________________
                                Indenture Trustee

                                       and

                        _________________________________
                                  Owner Trustee

                         TRUST AND SERVICING AGREEMENT,

                             Dated as of __________

                           Bay View _____ Owner Trust

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                   PAGE
<S>                                                                                <C>
ARTICLE I Creation of Trust.....................................................     1

   SECTION 1.01 Name............................................................     1
   SECTION 1.02 Office..........................................................     1
   SECTION 1.03 Purposes and Powers.............................................     1
   SECTION 1.04 Appointment of Owner Trustee....................................     2
   SECTION 1.05 Initial Capital Contribution of Trust Estate....................     2
   SECTION 1.06 Declaration of Trust............................................     2
   SECTION 1.07 Title to Trust Property.........................................     2
   SECTION 1.08 Situs of Trust..................................................     2

ARTICLE II Definitions..........................................................     3

   SECTION 2.01 Definitions.....................................................     3
   SECTION 2.02 Usage of Terms..................................................    14
   SECTION 2.03 Cutoff Date and Record Date.....................................    14
   SECTION 2.04 Section References..............................................    14
   SECTION 2.05 Compliance Certificates.........................................    14
   SECTION 2.06 Directions......................................................    15
   SECTION 2.07 Calculations....................................................    15
   SECTION 2.08 Action by or Consent of Noteholders.............................    15

ARTICLE III Conveyance of Receivables...........................................    15

   SECTION 3.01 Conveyance of Receivables.......................................    15

ARTICLE IV Acceptance by Trustee................................................    16

   SECTION 4.01 Acceptance by Trustee...........................................    16

ARTICLE V Information Delivered to the Rating Agencies..........................    17

   SECTION 5.01 Information Delivered to the Rating Agencies....................    17

ARTICLE VI Agent for Service....................................................    17

   SECTION 6.01 Agent for Service...............................................    17

ARTICLE VII The Receivables.....................................................    18

   SECTION 7.01 Representations and Warranties of Transferor....................    18
   SECTION 7.02 Repurchase Upon Breach..........................................    19
   SECTION 7.03 Custody of Receivable Files.....................................    19
   SECTION 7.04 Duties of Servicer as Custodian.................................    19
   SECTION 7.05 Instructions; Authority to Act..................................    20
   SECTION 7.06 Custodian's Indemnification.....................................    20
   SECTION 7.07 Effective Period and Termination................................    20
</TABLE>

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<TABLE>
<S>                                                                                      <C>
ARTICLE VIII Administration and Servicing of Receivables............................     21

   SECTION 8.01 Duties of Servicer..................................................     21
   SECTION 8.02 The Back-up Servicer................................................     21
   SECTION 8.03 The Standby Servicer................................................     22
   SECTION 8.04 Retention and Termination of Servicer...............................     23
   SECTION 8.05 Collection of Receivable Payments...................................     23
   SECTION 8.06 Realization Upon Receivables........................................     24
   SECTION 8.07 Physical Damage Insurance...........................................     25
   SECTION 8.08 Maintenance of Security Interests in Financed Vehicles..............     25
   SECTION 8.09 Covenants of Servicer...............................................     25
   SECTION 8.10 Purchase of Receivables Upon Breach.................................     25
   SECTION 8.11 Servicing Fee.......................................................     26
   SECTION 8.12 Servicer's Certificate..............................................     26
   SECTION 8.13 Annual Statement as to Compliance; Notice of Default................     27
   SECTION 8.14 Annual Independent Certified Public Accountant's Report.............     28
   SECTION 8.15 Access to Certain Documentation and Information Regarding
                Receivables.........................................................     28
   SECTION 8.16 Servicer Expenses...................................................     28
   SECTION 8.17 Reports to Noteholders..............................................     29

ARTICLE IX Collections; Distributions to Noteholders and Certificateholders.........     29

   SECTION 9.01 Collection Account..................................................     29
   SECTION 9.02 Collections.........................................................     29
   SECTION 9.03 Additional Deposits.................................................     30
   SECTION 9.04 Application of Funds................................................     30
   SECTION 9.05 Advances............................................................     31
   SECTION 9.06 Net Deposits........................................................     32
   SECTION 9.07 No Segregation of Moneys; No Interest...............................     32
   SECTION 9.08 Accounting and Reports to the Certificateholder, the Internal
                Revenue Service and Others..........................................     32
   SECTION 9.09 Payahead Account....................................................     33

ARTICLE X The Certificates..........................................................     33

   SECTION 10.01  The Certificates..................................................     33
   SECTION 10.02  Authentication of Certificates....................................     33
   SECTION 10.03  Registration of Transfer and Exchange of Certificates.............     33
   SECTION 10.04  Mutilated, Destroyed, Lost, or Stolen Certificates................     34
   SECTION 10.05  Agreement Regarding Tax Matters...................................     34
   SECTION 10.06  Signature on Returns; Tax Matters Partner.........................     35

ARTICLE XI The Transferor...........................................................     35

   SECTION 11.01  Representations and Undertakings of Transferor....................     35
   SECTION 11.02  Liability of Transferor; Indemnities..............................     38
   SECTION 11.03  Merger or Consolidation of, or Assumption of the Obligations of
                  Transferor........................................................     38
   SECTION 11.04  Limitation on Liability of Transferor and Others..................     39
</TABLE>

TRUST AND SERVICING AGREEMENT

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<TABLE>
<S>                                                                                      <C>
ARTICLE XII The Servicer; BACK-UP SERVICER; AND STANDBY SERVICER....................     39

   SECTION 12.01  Representations and Warranties....................................     39
   SECTION 12.02  Indemnities of Servicer, Back-up Servicer and Standby Servicer....     43
   SECTION 12.03  Merger or Consolidation of, or Assumption of the Obligations of
                  the Servicer, Back-up Servicer and Standby Servicer...............     45
   SECTION 12.04  Limitation on Liability of Servicer and Others....................     46
   SECTION 12.05  Servicer, Back-up Servicer and Standby Servicer Not to Resign.....     46
   SECTION 12.06  Delegation of Duties..............................................     47

ARTICLE XIII Servicer Default.......................................................     47

   SECTION 13.01  Events of Servicer Default........................................     47
   SECTION 13.02  Appointment of Successor..........................................     49
   SECTION 13.03  Notice of Events of Servicer Default..............................     49
   SECTION 13.04  Waiver of Past Defaults...........................................     49

ARTICLE XIV The Owner Trustee.......................................................     50

   SECTION 14.01  Duties of Owner Trustee...........................................     50
   SECTION 14.02  Owner Trustee's Certificate.......................................     52
   SECTION 14.03  Owner Trustee's Assignment of Purchased Receivables...............     52
   SECTION 14.04  Certain Matters Affecting the Owner Trustee.......................     53
   SECTION 14.05  Owner Trustee Not Liable for Certificates or Receivables..........     54
   SECTION 14.06  Owner Trustee May Own Notes.......................................     55
   SECTION 14.07  Owner Trustee's and Indenture Trustee's Fees and Expenses.........     55
   SECTION 14.08  Eligibility Requirements for Owner Trustee........................     56
   SECTION 14.09  Resignation or Removal of Owner Trustee...........................     56
   SECTION 14.10  Successor Owner Trustee...........................................     57
   SECTION 14.11  Merger or Consolidation of Owner Trustee..........................     57
   SECTION 14.12  Appointment of Co-Trustee or Separate Owner Trustee...............     57
   SECTION 14.13  Representations and Warranties of Owner Trustee...................     59

ARTICLE XV Termination servicer.....................................................     59

   SECTION 15.01  Termination of the Trust..........................................     59
   SECTION 15.02  Optional Disposition of All Receivables...........................     59

ARTICLE XVI Miscellaneous Provisions................................................     60

   SECTION 16.01  Amendment.........................................................     60
   SECTION 16.02  Protection of Title to Trust......................................     62
   SECTION 16.03  Limitation on Rights of Certificateholders........................     64
   SECTION 16.04  Governing Law.....................................................     64
   SECTION 16.05  Notices...........................................................     65
   SECTION 16.06  Severability of Provisions........................................     65
   SECTION 16.07  Assignment........................................................     65
   SECTION 16.08  Certificates Nonassessable and Fully Paid.........................     66
   SECTION 16.09  Nonpetition Covenants.............................................     66
   SECTION 16.10  No Recourse.......................................................     66
   SECTION 16.11  Further Assurances................................................     66
   SECTION 16.12  No Waiver; Cumulative Remedies....................................     66
</TABLE>

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<TABLE>
<S>                                                                                   <C>
SECTION 16.13  Third-Party Beneficiaries.........................................     66
SECTION 16.14  Actions by Noteholders or Certificateholders......................     67
SECTION 16.15  Corporate Obligation..............................................     67
SECTION 16.16  Independence of the Servicer, Back-up Servicer and Standby
               Servicer..........................................................     67
SECTION 16.17  No Joint Venture..................................................     68
SECTION 16.18  Headings..........................................................     68
SECTION 16.19  Entire Agreement..................................................     68
SECTION 16.20  Effect of Policy Expiration Date..................................     68
SECTION 16.21  Sarbanes-Oxley Certifications.....................................     68
SECTION 16.22  Counterparts......................................................     69
</TABLE>

<TABLE>
<S>               <C>          <C>
EXHIBIT 1         --           Owner Trustee's Certificate Pursuant to Section 15.02
EXHIBIT 2         --           Owner Trustee's Certificate Pursuant to Section 15.02
EXHIBIT 3         --           Servicer's Certificate
EXHIBIT A         --           Form of Certificate of Trust
EXHIBIT B         --           Form of Certificate

SCHEDULE A        --           Schedule of Receivables
SCHEDULE B        --           Location of Receivables
</TABLE>

TRUST AND SERVICING AGREEMENT

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         This TRUST AND SERVICING AGREEMENT 013558.0100:233303.03 This TRUST AND
SERVICING AGREEMENT, dated as of __________, is made with respect to the
formation of the Bay View _____ Owner Trust, among BAY VIEW TRANSACTION
CORPORATION, a Delaware corporation, as depositor (the "Transferor"), BAY VIEW
ACCEPTANCE CORPORATION, a Nevada corporation, as servicer (the "Servicer"), and
____________________, a Delaware banking corporation, as owner trustee (the
"Owner Trustee").

         WITNESSETH THAT: In consideration of the premises and of the mutual
agreements herein contained, the parties hereto agree as follows:

                                   ARTICLE I

                                CREATION OF TRUST

         Upon the execution of this Agreement by the parties hereto and the
prompt filing thereafter of the Certificate of Trust in the State of Delaware,
there is hereby created the Bay View _____ Owner Trust.

         SECTION 1.01      Name. The Trust created hereby shall be known as
"Bay View _____ Owner Trust", in which name the Owner Trustee may conduct the
business of the Trust, make and execute contracts and other instruments on
behalf of the Trust and sue and be sued. The Trust shall constitute a business
trust within the meaning of Section 3801(a) of the Delaware Business Trust Act
for which the Owner Trustee has filed a certificate of trust with the Secretary
of State of the State of Delaware pursuant to Section 3810(a) of the Delaware
Business Trust Act.

         SECTION 1.02      Office. The office of the Trust shall be in care
of the Owner Trustee at its Corporate Trust Office or at such other address as
the Owner Trustee may designate by written notice to the Certificateholders, the
Servicer, the Transferor, the Insurer and the Indenture Trustee.

         SECTION 1.03      Purposes and Powers. The purpose of the Trust is
to engage in the following activities:

                  (i)   to issue the Notes pursuant to the Indenture and the
                        Certificates pursuant to this Agreement and to sell or
                        transfer the Notes and the Certificates in one or more
                        transactions;

                  (ii)  with the proceeds of the sale of the Notes and the
                        Certificates, to fund the Spread Account pursuant to
                        Section 9.02 of the Indenture and to purchase the
                        Receivables pursuant to this Agreement;

                  (iii) to assign, grant, transfer, pledge, mortgage and convey
                        the Trust estate pursuant to the Indenture and to hold,
                        manage and distribute to the Certificateholders pursuant
                        to the terms of this Agreement any portion of the Trust
                        estate released from the Lien of, and remitted to the
                        Trust pursuant to, the Indenture;

TRUST AND SERVICING AGREEMENT

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                  (iv)  to enter into and perform its obligations under the
                        related documents to which it is to be a party;

                  (v)   to engage in those activities, including entering into
                        agreements, that are necessary, suitable or convenient
                        to accomplish the foregoing or are incidental thereto or
                        connected therewith; and

                  (vi)  subject to compliance with the related documents, to
                        engage in such other activities as may be required in
                        connection with conservation of the Trust estate and the
                        making of distributions to the Certificateholders, the
                        Noteholders and the others specified in this Agreement.

         The Trust is hereby authorized to engage in the foregoing activities.
The Trust shall not engage in any activity other than in connection with the
foregoing or other than as required or authorized by the terms of this Agreement
or the other related documents.

         SECTION 1.04      Appointment of Owner Trustee. The Transferor hereby
appoints the Owner Trustee as trustee of the Trust effective as of the date
hereof, to have all the rights, powers and duties set forth herein and in the
Delaware Statutory Trust Act.

         SECTION 1.05      Initial Capital Contribution of Trust Estate. The
Transferor hereby sells, assigns, transfers, conveys and sets over to the Owner
Trustee, as of the date hereof, the Trust estate. The Owner Trustee hereby
acknowledges receipt in trust from the Transferor, as of the date hereof, of the
foregoing contribution, which shall constitute the initial Trust estate. The
Transferor shall pay the organizational expenses of the Trust as they may arise
or shall, upon the request of the Owner Trustee, promptly reimburse the Owner
Trustee for any such expenses paid by the Owner Trustee.

         SECTION 1.06      Declaration of Trust. The Owner Trustee hereby
declares that it will hold the Trust estate in trust upon and subject to the
conditions set forth herein for the use and benefit of the Certificateholders,
subject to the obligations of the Trust under the other related documents. It is
the intention of the parties hereto that the Trust constitute a business trust
under Delaware law and that this Agreement constitute the governing instrument
of such trust. It is the intention of the parties hereto that the Trust will be
disregarded and that the Certificateholders will be treated as the owner of the
Trust estate, and that the Notes will be treated as indebtedness of the
Certificateholders for all federal and state income and franchise tax purposes.
The Owner Trustee and the Certificateholders, by acceptance of the Certificates,
agree to treat the Notes for purposes of federal, state and local income or
franchise taxes as indebtedness.

         SECTION 1.07      Title to Trust Property. Legal title to all of the
Trust estate shall be vested at all times in the Trust as a separate legal
entity except where applicable law in any jurisdiction requires title to any
part of the Trust estate to be vested in a trustee or trustees, in which case
title shall be deemed to be vested in the Owner Trustee, a co-trustee and/or a
separate trustee, as the case may be.

         SECTION 1.08      Situs of Trust. The Trust will be located and
administered in the State of Delaware. Any bank accounts maintained by the Owner
Trustee on behalf of the Trust shall be located in the State of Delaware. The
Trust shall not have any employees in any state other

TRUST AND SERVICING AGREEMENT

                                        2

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than Delaware; provided, however, that nothing herein shall restrict or prohibit
the Owner Trustee from having employees within or without the State of Delaware.
Payments, if any, will be received by the Trust only in Delaware, and payments,
if any, will be made by the Trust only from Delaware. The only office of the
Trust will be at the Corporate Trust Office in Delaware.

                                   ARTICLE II

                                   DEFINITIONS

         SECTION 2.01      Definitions. Whenever used in this Agreement, the
following words and phrases, unless the context otherwise requires, shall have
the following meanings:

         "Accrued Interest" means all interest accrued on the Receivables prior
to the opening of business on the day following the Cutoff Date.

         "Administration Agreement" means the Administration Agreement dated as
of __________ among the Trust, the Owner Trustee and the Administrator.

         "Administrator" means the Administrator under the Administration
Agreement, which is initially BVAC, and its successors and assigns thereunder.

         "Advance" means, with respect to a Receivable and with respect to a
Collection Period, the amount that the Servicer is required to advance pursuant
to Section 9.05.

         "Affiliate" means, with respect to any specified Person, any other
Person who directly or indirectly controls, or is under direct or indirect
common control with such specified Person. For the purposes of this definition,
"control" when used with respect to any 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.

         "Agreement" means this Trust and Servicing Agreement executed by the
Transferor, the Servicer, the Indenture Trustee and the Owner Trustee, and all
amendments and supplements thereto.

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

         "Approved Rating" means a rating of _____ by __________ or _____ by
__________.

         "Authorized Newspaper" means a newspaper of general circulation in the
Borough of Manhattan, the City of New York, printed in the English language and
customarily published on each Business Day, whether or not published on
Saturdays, Sundays and holidays.

         "Available Funds" means with respect to any Payment Date, each of the
following then on deposit in any Trust Accounts with respect to the related
Collection Period, (i) the amount of payment son all Receivables received during
such Collection Period other than Payaheads; (ii) any net withdrawal from the
Payahead Account; (iii) interest earned on funds held in the

TRUST AND SERVICING AGREEMENT

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Collection Account and the Payahead Account; (iv) Liquidation Proceeds; (v)
Advances; (vi) Purchase Amounts and/or any indemnity payments made in lieu of or
otherwise relating to such Purchase Amounts in accordance with the terms of
Sections 7.02 and 8.10 of this Agreement, (vii) proceeds form any insurance
policies related to the Receivables or Financed Vehicles, (viii) Recoveries with
respect to Charged-off Receivables and (ix) the Optional Disposition Price if,
the Servicer exercise its rights pursuant to Section 15.02.

         "Available Spread Amount" means, on any Payment Date, the amount on
deposit in the Spread Account, including any income or gain from any investment
of funds in the Spread Account, net of any losses from such investment before
giving effect to deposits into or withdrawals from the Spread Account pursuant
to the Indenture.

         "Back-up Servicer" means ____________________, as the back-up servicer
of the Receivables, and each successor to ____________________ (in the same
capacity) appointed hereunder.

         "Back-up Servicer Fee" means, for any Collection Period, the fee
payable to the Back-up Servicer for services rendered during such Collection
Period. If the Back-up Servicer shall have taken on the role as Servicer
hereunder, it will be entitled to the Servicing Fee, and it shall not be
entitled to a Back-up Servicer Fee.

         "Business Day" means, unless otherwise specified, any day other than a
Saturday, a Sunday or a day on which banking institutions in Wilmington,
Delaware, San Mateo, California or New York, New York shall be authorized or
obligated by law, executive order, or governmental decree to be closed.

         "BVAC" means Bay View Acceptance Corporation, a Nevada corporation, and
its successors and assigns, other than in its capacity as Servicer.

         "Certificate" means a certificate executed on behalf of the Trust and
authenticated by the Owner Trustee substantially in the form attached hereto as
Exhibit B, which represents ownership of a 100% interest in the Trust.

         "Certificate of Trust" means the Certificate of Trust of the Trust in
substantially the form of Exhibit A hereto.

         "Certificate Register" means the register maintained by the Owner
Trustee pursuant to Section 10.03.

         "Certificateholder" or "Holder" means the Person in whose name the
Certificate shall be registered in the Certificate Register.

         "Charged-Off Receivable" means, for any Collection Period, a Receivable
as to which any of the following has occurred: (i) any payment, or part thereof,
is 120 days or more delinquent as of the last day of such Collection Period,
(ii) the Financed Vehicle that secures the Receivable has been repossessed and
liquidated, or (iii) the Receivable has been determined to be uncollectible in
accordance with the Servicer's customary practices on or before the last day of
such Collection Period; provided, however, that "Charged-Off Receivable" shall
not include

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                                        4

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any Receivable that is to be repurchased pursuant to Section 7.02 or purchased
pursuant to Section 8.10; provided further, that any Advances made with respect
to a Receivable shall not be considered in the determination of the delinquency
status of such Receivable.

         "Closing Date" means ____________________.

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

         "Collected Interest" on a Receivable, as of the last day of a
Collection Period, means the portion of all payments received by the Servicer
allocable to interest relating to such Collection Period.

         "Collection Account" means the account designated as such, established
and maintained pursuant to Section 9.01.

         "Collection Period" means (i) initially, the period from the day after
the Cutoff Date to the end of the calendar month of __________, and (ii)
thereafter, each calendar month, until the Trust shall terminate pursuant to
Article XV.

         "Contract Rate" means, with respect to a Receivable, the contract rate
of interest on such Receivable, exclusive of prepaid finance charges.

         "Controlling Party" means the Insurer, so long as no Insurer Default
shall have occurred and be continuing and so long as the Insurance Agreement has
not terminated, and the Indenture Trustee, at the direction of the Majority
Noteholders, for so long as an Insurer Default shall have occurred and is
continuing or if the Insurance Agreement has terminated.

         "Corporate Trust Office" means the office of the Owner Trustee at which
its corporate trust business shall, at any particular time, be administered,
which office at the date of the execution of this Agreement is located at
____________________; Attention: ____________________; Telecopy __________ or at
such other address as the Owner Trustee may designate from time to time by
notice to the Certificateholders, the Transferor, the Servicer, the Insurer and
the Indenture Trustee.

         "Cutoff Date" means __________.

         "Dealer" means the seller of a Financed Vehicle, who originated and
assigned the related Receivable to BVAC under an existing agreement with BVAC or
who arranged for a loan from BVAC to the purchaser of a Financed Vehicle under
an existing agreement with BVAC.

         "Determination Date" means, for each Collection Period, the __________
Business Day prior to the related Payment Date.

         "Eligible Bank" means any depository institution with trust powers
(including the Owner Trustee and the Indenture Trustee), organized under the
laws of the United States or any State having a net worth in excess of
$50,000,000, the deposits of which are insured to the full extent permitted by
law by the Federal Deposit Insurance Corporation, which is subject to
supervision

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                                        5

<PAGE>

and examination by Federal or State authorities and which (i) has a long-term
unsecured debt rating of at least BBB- from Standard & Poor's Rating Services or
(ii) is approved by the Insurer and each Rating Agency.

         "Eligible Investment" means any of the following:

                  (i)      direct obligations of, and obligations the full and
                           timely payment of principal and interest on which is
                           fully guaranteed by, the United States of America,
                           Fannie Mae, 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;

                  (ii)     (A)      demand and time deposits in, certificates of
                                    deposits of, bankers' acceptances issued by,
                                    or federal funds sold by any depository
                                    institution or trust company (including the
                                    Owner Trustee, the Indenture Trustee or any
                                    of their agents, acting in their respective
                                    commercial capacities) incorporated under
                                    the laws of the United States of America,
                                    any State thereof or the District of
                                    Columbia or any foreign depository
                                    institution with a branch or agency licensed
                                    under the laws of the United States of
                                    America or any State, in each case subject
                                    to supervision and examination by Federal
                                    and/or State banking authorities and having
                                    an Approved Rating at the time of such
                                    investment or contractual commitment
                                    providing for such investment or

                           (B)      any other demand or time deposit or
                                    certificate of deposit which is fully
                                    insured by the Federal Deposit Insurance
                                    Corporation;

                  (iii)    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) (A) above;

                  (iv)     short-term 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
                           the short-term unsecured obligations of which have an
                           Approved Rating, or higher, 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;

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<PAGE>

                  (v)      commercial paper having an Approved Rating at the
                           time of such investment;

                  (vi)     a guaranteed investment contract issued by any
                           insurance company or other corporation acceptable to
                           the Rating Agency, provided that the Owner Trustee or
                           the Indenture Trustee shall have received written
                           notice from the Rating Agency to the effect that the
                           investment of funds in such a contract will not
                           result in the reduction or withdrawal of any rating
                           on the Notes;

                  (vii)    interests in any money market fund having a rating of
                           _____ by __________ or _____ by __________; and

                  (viii)   any other investment approved in advance in writing
                           by the Rating Agencies and the Insurer.

         "Event of Servicer Default" means an event specified in Section 13.01.

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

         "GAAP" means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board, or in such other statements that are
described in Statement on Auditing Standards No. 69 "The Meaning of Present
Fairly in Conformity With Generally Accepted Accounting Principles in the
Independent Auditor's Report" that are applicable to the circumstances as of the
date of determination, applied on a consistent basis.

         "Holder"--see "Certificateholder."

         "Indenture" means the Indenture dated as of __________ between the
Trust, as Issuer, and __________ as Indenture Trustee, which provides for the
issuance of the Notes as the same may be amended, supplemented or otherwise
modified from time to time.

         "Indenture Trustee" means ____________________ in its role as Indenture
Trustee under the Indenture and its permitted successors and assigns.

         "Indenture Trustee Fee" means the fees and expenses payable on each
Payment Date to the Indenture Trustee in consideration for the performance of
its duties as Indenture Trustee as set forth in the fee letter agreement dated
__________.

         "Indenture Trustee Office" means the office of the Indenture Trustee at
which its business as Indenture Trustee under the Indenture shall be
administered, which office is presently located at ____________________;
telecopy __________ or at such other address as the Indenture Trustee may
designate from time to time by notice to the Owner Trustee, the Servicer and the
Noteholders.

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                                        7

<PAGE>

         "Insolvency Event" with respect to a party means (i) the entry of a
decree or order by a court or agency or supervisory authority having
jurisdiction in the premises for the appointment of a trustee-in-bankruptcy or
similar official for such party in any insolvency, readjustment of debt,
marshaling of assets and liabilities, or similar proceedings, or for the winding
up or liquidation of their respective affairs, and the continuance of any such
decree or order unstayed and in effect for a period of 60 consecutive days; or
(ii) the consent by such party to the appointment of a trustee-in-bankruptcy or
similar official in any insolvency, readjustment of debt, marshaling of assets
and liabilities, or similar proceedings of or relating to such party or of or
relating to substantially all of its property; or (iii) such party shall admit
in writing its inability to pay its debts generally as they become due, file a
petition to take advantage of any applicable insolvency or reorganization
statute, make an assignment for the benefit of its creditors, or voluntarily
suspend payment of its obligations.

         "Insolvency Proceeding" means the commencement, after the date hereof,
of any bankruptcy, insolvency, readjustment of debt, reorganization, marshaling
of assets and liabilities or similar proceedings by or against BVAC or the
Transferor, the commencement, after the date hereof, of any proceedings by or
against BVAC or the Transferor for the winding up or liquidation of its affairs
or the consent, after the date hereof, to the appointment of a trustee,
conservator, receiver, or liquidator in any bankruptcy, insolvency, readjustment
of debt, reorganization, marshaling of assets and liabilities or similar
proceedings of or relating to BVAC or the Transferor.

         "Insurance Agreement" means the Insurance and Reimbursement Agreement,
dated as of the Closing Date, among the Trust, the Transferor, BVAC and the
Insurer pursuant to which the Insurer issued the Policy.

         "Insurance Policies" means any physical damage, credit life and credit
accident and health insurance policies or certificates or any vendor's single
interest physical damage insurance policy relating to the Receivables, the
Financed Vehicles or the Obligors.

         "Insurer" means ____________________, a __________ domiciled insurance
company.

         "Insurer Default" means the existence and continuance of any of the
following:

                  (a)      the Insurer shall have failed to make a payment
         required under the Policy in accordance with its terms; or

                  (b)      the Insurer shall have (i) filed a petition or
         commenced any case or proceeding under any provision or chapter of the
         United States Bankruptcy Code or any other similar federal or state law
         relating to insolvency, bankruptcy, rehabilitation, liquidation or
         reorganization, (ii) made a general assignment for the benefit of its
         creditors, or (iii) had an order for relief entered against it under
         the United States Bankruptcy Code or any other similar federal or state
         law relating to insolvency, bankruptcy, rehabilitation, liquidation or
         reorganization which is final and nonappealable; or

                  (c)      a court of competent jurisdiction, the New York
         Department of Insurance or other competent regulatory authority shall
         have entered a final and nonappealable

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         order, judgment or decree (i) appointing a custodian, trustee, agent or
         receiver for the Insurer or for all or any material portion of its
         property or (ii) authorizing the taking of possession by a custodian,
         trustee, agent or receiver of the Insurer (or the taking of possession
         of all or any material portion of the property of the Insurer).

         "Interest Advance Amount" with respect to a simple interest Receivable
as to which an Advance is required to be made on the last day of a Collection
Period, shall mean an amount equal to 30 days of interest upon the Principal
Balance of such Receivable as of such date; and, with respect to a Precomputed
Receivable as to which an Advance is required to be made on the last day of a
Collection Period, shall mean an amount equal to that portion of the earliest
delinquent Scheduled Payment allocable to interest (using the actuarial or
constant yield method).

         "Interest Shortfall" means, as to any simple interest Receivable as of
the last day of any Collection Period, the amount, if any, by which (a) interest
due on such Receivable exceeds (b) the Collected Interest on such Receivable.
"Interest Shortfall" with respect to a Precomputed Receivable as of the last day
of any Collection Period means the amount, if any, by which the portion of the
Scheduled Payment due during such Collection Period allocable to interest (using
the actuarial or constant yield method) exceeds the Collected Interest on such
Receivable (computed using the same method except that the amount of Collected
Interest in respect of Precomputed Receivables shall be increased by giving
effect to the withdrawal for the related Payment Date of any previously received
Scheduled Payments in respect of such Receivable from the Payahead Account in
accordance with Sections 8.05(b) and 9.09 hereof).

         "Issuer" has the meaning specified in the Indenture.

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

         "Liquidation Proceeds" means the monies collected from whatever source,
including insurance proceeds, on Charged-Off Receivables, net of the sum of any
amounts expended by the Servicer for the account of the Obligor plus any amounts
required by law to be remitted to the Obligor. "Liquidation Proceeds" with
respect to a Payment Date means such monies collected during the preceding
Collection Period. In no event shall Liquidation Proceeds be less than zero.

         "Majority Noteholders" has the meaning specified in the Indenture.

         "Monthly Interest" has the meaning specified in the Indenture.

         "Monthly Principal" has the meaning specified in the Indenture.

         "Notes" mean the Notes issued by the Trust pursuant to the Indenture.

         "Noteholders" mean the holders of the Notes issued pursuant to the
Indenture.

         "Obligor" on a Receivable means the purchaser or the co-purchasers of
the Financed Vehicle or any other Person who owes payments under the Receivable.
The phrase "payment

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<PAGE>

made on behalf of an Obligor" shall mean all payments made with respect to a
Receivable except payments made by BVAC, the Transferor or the Servicer.

         "Officers' Certificate" means a certificate signed by any two of the
chairman of the board, the president, any vice chairman of the board, any vice
president, the treasurer, or the controller of BVAC, the Transferor or the
Servicer, as the case may be; provided that no individual shall sign in a dual
capacity.

         "Opinion of Counsel" means a written opinion of counsel, who may be
counsel to the Transferor and/or Servicer, which counsel shall be acceptable to
the Owner Trustee.

         "Optional Disposition Price" means the amount specified as such in
Section 15.02.

         "Original Pool Balance" means $__________.

         "Outstanding Advances" as of any date, with respect to a Receivable,
means the total amount of Advances made on such Receivable for which the
Servicer has not been reimbursed.

         "Owner Trustee" means ____________________, a banking corporation
organized under the laws of the State of Delaware and its successors or any
corporation resulting from or surviving any merger or consolidation to which it
or its successors may be a party or any successor trustee at the time serving as
successor trustee hereunder.

         "Owner Trustee Fee" means the fees and expenses payable on each Payment
Date to the Owner Trustee in consideration for the performance of its duties as
Owner Trustee as set forth in the fee letter agreement dated __________.

         "Owner Trustee's Certificate" means a certificate completed and
executed by the Owner Trustee by a Responsible Officer pursuant to Section
14.02, substantially in the form of, in the case of an assignment to BVAC,
Exhibit 1, and in the case of an assignment to the Servicer, Exhibit 2.

         "Payahead" on a Precomputed Receivable means the amount, as of the
close of business on the last day of a Collection Period, computed in accordance
with Section 8.05(b) with respect to such Receivable.

         "Payahead Account" means the account designated as such, established
and maintained pursuant to Section 9.09.

         "Payahead Balance" on a Precomputed Receivable means the sum, as of the
close of business on the last day of a Collection Period, of all Payaheads made
by or on behalf of the Obligor with respect to such Precomputed Receivable, as
reduced by applications of previous Payaheads with respect to such Precomputed
Receivable, pursuant to Sections 8.05(b) and 9.09.

         "Payment Date" means, for each Collection Period, the _____ calendar
day of the month or, if such day is not a Business Day, the first Business Day
thereafter. The first Payment Date shall be __________.

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<PAGE>

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

         "Policy" means the irrevocable financial guaranty insurance policy
dated as of the Closing Date issued by the Insurer to the Indenture Trustee for
the benefit of the Noteholders as required under the Indenture.

         "Pool Balance" as of any date means the aggregate Principal Balance of
the Receivables as of such date; provided, however, that for purposes of
determining Monthly Principal, the Principal Balance of a Charged-Off Receivable
or a Purchased Receivable (if actually purchased by the Servicer or repurchased
by BVAC) shall be deemed to be zero on and after the close of business on the
last day of the Collection Period in which the Receivable becomes a Charged-Off
Receivable or a Purchased Receivable that is actually purchased or repurchased.

         "Precomputed Receivable" means any Receivable under which the portion
of a payment allocable to earned interest (which may be referred to in the
related contract as an add-on finance charge) and the portion allocable to the
Amount Financed is determined according to the sum of periodic balances, the sum
of monthly balances, the rule of 78's or any equivalent method.

         "Prepayment Charges," means, with respect to a Precomputed Receivable
that is prepaid in full, the difference between the Principal Balance of such
Receivable (plus accrued interest to the date of prepayment) and the Principal
Balance of such Receivable computed in accordance with the method provided for
in the contract governing such Receivable, such as the rule of 78's.

         "Principal Balance" of a simple interest Receivable, as of the close of
business on the last day of a Collection Period, means the Amount Financed minus
that portion of all payments received on or before the close of business on such
last day allocable to principal of such Receivable. "Principal Balance" with
respect to a Precomputed Receivable, as of the close of business on the Cutoff
Date, means the gross principal balance of such Receivable on the records of the
Servicer, net of unearned or accrued interest reflected therein, and as of the
close of business on the last day of a Collection Period, means the Principal
Balance as of the Cutoff Date minus that portion of all Scheduled Payments
received with respect to such Receivable in respect of such Collection Period
and all prior Collection Periods allocable to principal of such Receivable using
the actuarial or constant yield method.

         "Purchase Agreement" means the Purchase Agreement dated as of the date
hereof by and between the Transferor and BVAC, as amended, supplemented or
modified from time to time in accordance with the terms thereof.

         "Purchase Amount" of any Receivable, as of the close of business on the
last day of any Collection Period, means the amount equal to the sum of the
Principal Balance of such Receivable plus any unpaid interest accrued and due
during or prior to such Collection Period on such Receivable.

         "Purchased Receivable" means a Receivable purchased by the Servicer
pursuant to Section 8.10 or repurchased by BVAC pursuant to Section 7.02 not
later than the respective dates required thereby.

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<PAGE>

         "Rating Agency" means each of __________ and __________ and their
successors and assigns.

         "Rating Agency Condition" has the meaning specified in the Indenture.

         "Receivable" means any simple interest or pre-computed (add-on)
interest installment sales contract or installment loan and security agreement
which shall appear on Schedule A to the Agreement.

         "Receivable Files" means the documents specified in Section 7.03.

         "Record Date" has the meaning specified in the Indenture.

         "Recoveries" means, with respect to a Charged-off Receivable and for
any Collection Period occurring after the Collection Period during which such
Receivable becomes a Charged-off Receivable, all payments, including insurance
proceeds, that the Servicer received from or on behalf of an Obligor regarding
such Charged-off Receivable, or from liquidation of the related Financed
Vehicle, net of any reasonably incurred out-of-pocket expenses incurred by the
Servicer in enforcing such Charged-off Receivable.

         "Redemption Price" has the meaning specified in the Indenture.

         "Responsible Officer" means, when used with respect to the Owner
Trustee, any officer within the Corporate Trust Office (or any successor group
of the Owner Trustee) including any managing director, vice president, assistant
vice president, assistant treasurer, assistant secretary or any other officer of
the Owner Trustee customarily performing functions similar to those performed by
the persons who at the time shall be such officers, respectively, or to whom any
corporate trust matter is referred because of his knowledge of and familiarity
with the particular subject.

         "Scheduled Payment" on a Receivable means that portion of the payment
required to be made by the Obligor during the respective Collection Period
sufficient to amortize the Principal Balance and to provide interest at the
Contract Rate.

         "Secured Parties" means each of the Indenture Trustee, the Noteholders
and the Insurer pursuant to the Indenture.

         "Servicer" means Bay View Acceptance Corporation, a Nevada corporation,
in its capacity as the servicer of the Receivables and each successor to Bay
View Acceptance Corporation (in the same capacity) pursuant to Section 12.03 or
13.02; provided that, if the Servicer has been removed pursuant to Section 8.04
or Section 13.02 hereof, "Servicer" shall mean the Standby Servicer or such
other Person appointed as the successor Servicer pursuant to Section 13.02
hereof. If the Standby Servicer has been removed as Servicer pursuant to Section
13.02 hereof, "Servicer" shall mean the Back-up Servicer, acting through an
agent, or such other Person appointed as the successor Servicer pursuant to
Section 13.02 hereof.

         "Servicer Extension Notice" means the notice delivered pursuant to
Section 8.04 hereof.

TRUST AND SERVICING AGREEMENT

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<PAGE>

         "Servicer's Certificate" means a certificate completed and executed by
an officer of the Servicer pursuant to Section 8.12.

         "Servicing Fee" means, (i) for the first Payment Date, the product of
the following: the (a) monthly Servicing Rate (b) the number of days remaining
in the month of the Closing Date from and including the Closing Date, assuming a
30-day month, divided by 30 and (c) the Original Pool Balance and (ii) for any
subsequent Payment Date, the product of (a) the Pool Balance as of the beginning
of the related Collection Period and (b) the monthly Servicing Rate.

         "Servicing Rate" means 1.00% per annum, payable monthly at one-twelfth
of the annual rate, subject to adjustment with respect to a successor Servicer
pursuant to Section 13.02.

         "Spread Account" means the account designated as such, established and
maintained pursuant to the Indenture.

         "Standby Servicer" means __________ in its capacity as Standby Servicer
or such Person as shall have been appointed Standby Servicer pursuant to Section
8.03 hereof.

         "Standby Servicer Fee" means, for any Collection Period, the fee
payable to the Standby Servicer for services rendered during such Collection
Period. If the Standby Servicer shall have taken on the role as Servicer
hereunder, it will be entitled to the Servicing Fee, and it shall not be
entitled to a Standby Servicing Fee.

         "Standby Servicer Fee Rate" means, with respect to any Payment Date,
the amount, expressed as a percentage, determined by dividing (i) the Standby
Servicer Fee for such Payment Date and (ii) the outstanding Principal Balance of
the Receivables as of the first day of the immediately preceding Collection
Period.

         "State" means (i) any state of the United States of America or (ii) the
District of Columbia.

         "Stated Final Payment Date" means ____________________.

         "Transferor" means Bay View Transaction Corporation, a Delaware
corporation, in its capacity as the seller of the Receivables under this
Agreement, and each successor to Bay View Transaction Corporation (in the same
capacity) pursuant to Section 11.03.

         "Transition Costs" means reasonable costs and expenses (including
attorneys' fees) incurred by and payable by the predecessor Servicer, or to the
extent not so paid, by the Issuer, to the extent of Available Funds, pursuant to
Section 8.04(a) of the Indenture, to the Successor Servicer in connection with
the transfer of servicing (whether due to termination, resignation or otherwise)
from the Servicer to such successor Servicer, including, without limitation,
costs and expenses incurred in connection with transferring the Receivable Files
and amending this Agreement to reflect the transfer of servicing, which shall be
approved in writing by the Insurer; provided, however, that in no event shall
the Transition Costs exceed $__________ without the prior written consent of the
Controlling Party.

TRUST AND SERVICING AGREEMENT

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<PAGE>

         "Treasury Regulations" means regulations, including proposed or
temporary regulations, promulgated under the Code. References herein to specific
provisions of proposed or temporary regulations shall include analogous
provisions of final Treasury Regulations or other successor Treasury
Regulations.

         "Trigger Event" means any of the events identified as such in the
Insurance Agreement.

         "Trust" means the Delaware business trust created by the Agreement, the
estate of which shall generally comprise the Receivables (other than Purchased
Receivables) and all monies paid thereon, and all monies due thereon, including
Accrued Interest, as of and after the Cutoff Date (but excluding Accrued
Interest paid on or prior to the Closing Date); security interests in the
Financed Vehicles; funds deposited in the Collection Account; all documents
contained in the Receivable Files; any property that shall have secured a
Receivable and that shall have been acquired by or on behalf of the Trust; any
Liquidation Proceeds and any rights of the Transferor in proceeds from claims or
refunds of premiums on any physical damage, lender's single interest, credit
life, disability, and hospitalization insurance policies covering Financed
Vehicles or Obligors; the interest of the Transferor in recourse to Dealers
relating to certain of the Receivables; the proceeds of the foregoing; amounts
on deposit from time to time in the Spread Account; and certain rights of the
Transferor under the Purchase Agreement, including, without limitation, Section
3.04 thereof.

         "Trust Accounts" means the Collection Account and the Payahead Account.

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

         SECTION 2.02      Usage of Terms. With respect to all terms in this
Agreement, the singular includes the plural and the plural the singular; words
importing any gender include the other genders; references to "writing" include
printing, typing, lithography and other means of reproducing words in a visible
form; references to agreements and other contractual instruments include all
subsequent amendments thereto or changes therein entered into in accordance with
their respective terms and not prohibited by this Agreement; references to
Persons include their permitted successors and assigns; and the term "including"
means "including without limitation."

         SECTION 2.03      Cutoff Date and Record Date. All references to the
Record Date prior to the first Record Date in the life of the Trust shall be to
the Closing Date.

         SECTION 2.04      Section References. All Section references in this
Agreement shall be to Sections in this Agreement unless otherwise specified.

         SECTION 2.05      Compliance Certificates. Upon any application or
request by the Transferor, the Servicer, the Back-up Servicer or the Standby
Servicer to the Indenture Trustee to take any action under any provision herein,
such requesting party shall furnish to the Indenture Trustee and the Insurer (so
long as the Insurance Agreement has not terminated), an Officer's Certificate
stating that all conditions precedent, if any, provided for herein relating to
the proposed action have been complied with, except that in the case of any
other such application or request as to which the furnishing of such documents
is specifically required by any provision of this Agreement relating to such
particular application or request, no additional certificate need be furnished.

TRUST AND SERVICING AGREEMENT

                                       14

<PAGE>

         Every certificate with respect to compliance with a condition or
covenant provided herein shall include a statement that each individual signing
such certificate has read such covenant or condition and the definitions and
other provisions herein relating thereto.

         SECTION 2.06      Directions. Any direction required to be given by
the Noteholders shall be given hereunder by the Insurer, unless an Insurer
Default shall have occurred and be continuing or the Policy shall have expired
in accordance with its terms, in which case the Indenture Trustee, acting at the
direction of the Majority Noteholders, shall be entitled to give such direction.

         SECTION 2.07      Calculations. All calculations of the amount of the
Servicing Fee, the Standby Servicer Fee, the Indenture Trustee Fee and the Owner
Trustee Fee shall be made on the basis of a 360-day year consisting of twelve
30-day months. All references to the Principal Balance of a Receivable as of the
last day of a Collection Period shall refer to the close of business on such
day.

         SECTION 2.08      Action by or Consent of Noteholders. Whenever any
provision of this Agreement refers to action to be taken, or consented to, by
Noteholders, such provision shall be deemed to refer to Noteholders of record as
of the Record Date immediately preceding the date on which such action is to be
taken, or consent given, by Noteholder. Solely for the purposes of any action to
be taken or consented to by Noteholders, any Note registered in the name of the
Transferor, the Servicer or any Affiliate thereof shall be deemed not to be
outstanding and shall not be taken into account in determining whether the
requisite interest necessary to effect any such action or consent has been
obtained; provided, however, that, solely for the purpose of determining whether
the Indenture Trustee is entitled to rely upon any such action or consent, only
Notes which the Indenture Trustee actually knows to be so owned shall be so
disregarded.

                                  ARTICLE III

                            CONVEYANCE OF RECEIVABLES

         SECTION 3.01      Conveyance of Receivables. In consideration of the
Owner Trustee's delivery to the Transferor of the Certificates and the proceeds
to be realized by the Trust from the issuance of the Notes pursuant to the
Indenture, the Transferor does hereby sell, transfer, assign, and otherwise
convey to the Trust, in trust without recourse (subject to the obligations
herein):

                  (i)      all right, title, and interest of the Transferor in
                           and to the Receivables listed in Schedule A hereto;

                  (ii)     the security interests in the Financed Vehicles
                           granted by Obligors pursuant to the Receivables;

                  (iii)    any proceeds from claims and other amounts relating
                           to Insurance Policies and other items financed under
                           the Receivables or otherwise covering an Obligor or a
                           Financed Vehicle;

                  (iv)     any Liquidation Proceeds;

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<PAGE>

                  (v)      all property (including the right to receive future
                           Liquidation Proceeds) that secures a Receivable and
                           that has been or may be acquired pursuant to the
                           liquidation of the Receivable;

                  (vi)     funds deposited in the Collection Account and the
                           Spread Account;

                  (vii)    the interest of the Transferor in any proceeds from
                           recourse to Dealers relating to the Receivables;

                  (viii)   all documents contained in the Receivable Files;

                  (ix)     all monies paid and all monies due, including Accrued
                           Interest, as of and after the Cutoff Date, with
                           respect to the Receivables held by the Servicer or
                           Transferor (but excluding Accrued Interest paid on or
                           prior to the Closing Date);

                  (x)      the rights of the Transferor pursuant to this Trust
                           and Servicing Agreement and to the Purchase
                           Agreement, including, without limitation, a direct
                           right to require BVAC to repurchase any Receivables
                           as to which there has been a breach of the
                           representations and warranties contained therein;

                  (xi)     the benefits of the Policy; and

                  (xii)    all proceeds of the foregoing.

         The Transferor does hereby further assign, convey, pledge and grant a
security interest in (i) any and all other right, title and interest, including
any beneficial interest the Transferor may have in the Collection Account, the
Spread Account and the funds deposited therein, and (ii) any proceeds of any of
the foregoing, to the Owner Trustee and for the benefit of the Noteholders to
secure amounts payable to Noteholders as provided under this Agreement. The
Transferor acknowledges that all of the foregoing shall constitute the "Pledged
Assets" pursuant to the terms of the Indenture and the Transferor hereby
consents to the pledge of all of such assets to the Indenture Trustee for the
benefit of the Secured Parties pursuant to the Indenture.

         The Transferor does not convey to the Owner Trustee any interest in any
contracts with Dealers related to any "dealer reserve" or any rights to the
recapture of any dealer reserve.

                                   ARTICLE IV

                              ACCEPTANCE BY TRUSTEE

         SECTION 4.01      Acceptance by Trustee. The Owner Trustee does hereby
accept all consideration conveyed by the Transferor pursuant to Article III, and
declares that the Owner Trustee shall hold such consideration upon the trusts
herein set forth for the benefit of all present and future Certificateholders,
subject to the terms and provisions of this Agreement.

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                                       16

<PAGE>

                                   ARTICLE V

                  INFORMATION DELIVERED TO THE RATING AGENCIES

         SECTION 5.01      Information Delivered to the Rating Agencies.

                  (a)      The Servicer hereby expresses its intention to
         deliver promptly to each Rating Agency (i) a copy of each Servicer's
         Certificate that it delivers to the Owner Trustee, the Indenture
         Trustee and the Insurer pursuant to Section 8.12, (ii) a copy of each
         annual Officers' Certificate as to compliance and any notice of default
         that it delivers to the Indenture Trustee or the Owner Trustee pursuant
         to Section 8.13, (iii) delinquency and loss information for the
         Receivables, the amount of any draws on the Policy, written notice of
         any merger, consolidation, or other succession of the Servicer,
         pursuant to Section 12.03, or the Transferor, pursuant to Section
         11.03, (iv) a copy of each amendment to this Agreement and (v) any
         Opinion of Counsel delivered to the Owner Trustee pursuant to Section
         16.02(i).

                  (b)      The Owner Trustee hereby expresses its intention to
         deliver promptly to each Rating Agency (i) a copy of each annual
         certified public accountant's report received by the Owner Trustee
         pursuant to Section 8.14, (ii) a copy of each amendment to this
         Agreement and (iii) a copy of the notice of termination of the Trust
         provided to the Owner Trustee pursuant to Section 15.01.

                  (c)      For purposes of delivery pursuant to paragraphs (a)
         and (b) of this Article V, the addresses for the Rating Agencies are:

                  (d)      The provisions of this Article V are included herein
         for convenience of reference only and shall not be construed to be
         contractual undertakings or obligations. The failure of the Servicer or
         the Owner Trustee to comply with any or all of the provisions of this
         Article V shall not constitute an Event of Servicer Default or a
         default of any kind under this Agreement or make any remedy available
         to any Person.

                                   ARTICLE VI

                                AGENT FOR SERVICE

         SECTION 6.01      Agent for Service. The agent for service for the
Transferor shall be __________, Vice President of the Transferor. Any and all
service on the agent for service of the Transferor shall be sent to Bay View
Transaction Corporation, 1840 Gateway Drive, San Mateo, California 94404 or such
other address as the Transferor shall provide notice thereof pursuant to
Sections 16.02(c) or 16.05.

         The agent for service for the Servicer shall be __________, Vice
President of the Servicer. Any and all service on the agent for service of the
Servicer shall be sent to Bay View Acceptance Corporation, 818 Oak Park Road,
Covina, California 91724.

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                                       17

<PAGE>

                                  ARTICLE VII

                                 THE RECEIVABLES

         SECTION 7.01      Representations and Warranties of Transferor.

                  (a)      Pursuant to Article III, the Transferor has assigned
         to the Trust the benefit of, and its rights respecting, the
         representations and warranties made to the Transferor in the Purchase
         Agreement as to the Receivables on which the Owner Trustee relies in
         accepting the Receivables in trust and executing and authenticating the
         Certificates and executing and delivering the Indenture and on which
         the Insurer will rely in issuing the Policy. The Transferor agrees that
         the representations shall also be for the benefit of the Secured
         Parties. Such representations and warranties speak as of the execution
         and delivery of the Purchase Agreement but shall survive the sale,
         transfer, and assignment of the Receivables to the Owner Trustee.

                  (b)      The Transferor hereby represents and warrants to the
         Owner Trustee that it has entered into the Purchase Agreement with
         BVAC, that BVAC has made the representations and warranties set forth
         therein, that such representations and warranties run to and are for
         the benefit of the Transferor, and that pursuant to Article III of this
         Agreement the Transferor has transferred and assigned to the Owner
         Trustee all rights of the Transferor to cause BVAC under the Purchase
         Agreement to repurchase Receivables in the event of a breach of such
         representations and warranties.

                  (c)      The foregoing provisions of this Section 7.01 are
         intended to grant the Trust and its assignees a direct right against
         BVAC to demand performance of its obligations under the Purchase
         Agreement.

                  (d)      It is the intention of the Transferor that the
         transfer and assignment herein contemplated, taken as a whole,
         constitute a sale of the Receivables from the Transferor to the Trust
         and that the beneficial interest in and title to the Receivables not be
         part of the receivership estate in the event of the appointment of a
         receiver for the Transferor. In the event that a court of competent
         jurisdiction were to conclude that the transfer of Receivables
         constitutes a grant of a security interest rather than a sale of the
         Receivables, this Agreement and the transactions provided for herein
         shall be deemed to constitute a grant by the Transferor to the Trust of
         a valid continuing first priority security interest in the Receivables
         and the proceeds thereof. No Receivable has been sold, transferred,
         assigned, or pledged by the Transferor to any Person other than the
         Owner Trustee. Immediately prior to the transfer and assignment herein
         contemplated, the Transferor had good and marketable title to each
         Receivable free and clear of all liens, and, immediately upon the
         transfer thereof, the Owner Trustee (for the benefit of the
         Certificateholders and the Secured Parties pursuant to the Indenture)
         shall have good and marketable title to each Receivable, free and clear
         of all liens and rights of others, except for the rights of the
         Certificateholders and the Insurer; and the transfer has been perfected
         under the UCC. On or prior to the Closing Date, all filings (including,
         without limitation, UCC filings) necessary in any jurisdiction to give
         the Owner Trustee a first perfected ownership interest in the
         Receivables shall have been made.

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         SECTION 7.02      Repurchase Upon Breach. Each party hereto shall

inform the other parties hereto and the Insurer promptly, in writing, upon the
discovery of any breach of the representations and warranties contained in the
Purchase Agreement. This obligation shall not constitute an obligation on the
part of the Owner Trustee to actively seek to discover any such breaches. Unless
the breach shall have been cured by the second Record Date following the
discovery, BVAC, pursuant to its obligations under the Purchase Agreement, shall
repurchase any Receivable materially and adversely affected by the breach as of
such Record Date (or, at BVAC's option, the first Record Date following the
discovery). In consideration of the purchase of the Receivable, BVAC shall remit
the Purchase Amount, in the manner specified in Section 9.03. The sole remedy of
the Owner Trustee, the Trust, or the Indenture Trustee with respect to a breach
of the representations and warranties referred to in Section 7.01 shall be to
require BVAC to repurchase Receivables pursuant to the Purchase Agreement and
this Section 7.02.

         SECTION 7.03      Custody of Receivable Files. To assure uniform
quality in servicing the Receivables and to reduce administrative costs, the
Owner Trustee, upon the execution and delivery of the Agreement, hereby
irrevocably appoints the Servicer, and the Servicer hereby accepts such
appointment, for the benefit of the Trust and the Indenture Trustee, to act as
the agent of the Owner Trustee as custodian of the following documents or
instruments which are hereby constructively delivered to the Owner Trustee with
respect to each Receivable:

                  (i)      The original of the Receivable.

                  (ii)     The original credit application fully executed by the
                           Obligor.

                  (iii)    The original certificate of title or such documents
                           that the Transferor or Servicer shall keep on file,
                           in accordance with its customary procedures,
                           evidencing the security interest of the Transferor in
                           the Financed Vehicle.

                  (iv)     Any and all other documents that the Servicer or the
                           Transferor shall keep on file, in accordance with its
                           customary procedures, relating to a Receivable, an
                           Obligor, or a Financed Vehicle.

         SECTION 7.04      Duties of Servicer as Custodian.

                  (a)      Safekeeping. The Servicer, in its capacity as
         custodian, shall hold the Receivable Files on behalf of the Owner
         Trustee for the use and benefit of all present and future Owner
         Trustees, and maintain such accurate and complete accounts, records,
         and computer systems pertaining to each Receivable File as shall enable
         the Owner Trustee to comply with this Agreement. In performing its
         duties as custodian the Servicer shall act with reasonable care, using
         that degree of skill and attention that the Servicer exercises with
         respect to the receivable files relating to all comparable automotive
         receivables that the Servicer services for itself. The Servicer shall
         conduct, or cause to be conducted, periodic audits of the Receivable
         Files held by it under this Agreement, and of the related accounts,
         records, and computer systems, in such a manner as shall enable the
         Owner Trustee to verify the accuracy of the Servicer's record keeping.
         The Servicer shall promptly report to the Owner Trustee and the
         Indenture Trustee any failure on its part to

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         hold the Receivable Files and maintain its accounts, records, and
         computer systems as herein provided and promptly take appropriate
         action to remedy any such failure; provided, however, notwithstanding
         anything to the contrary in Section 7.03 or this Section 7.04, the
         Servicer shall not be required to possess the original of Receivables
         representing less than 2% of the Original Pool Balance until 30 days
         following the Closing Date.

                  (b)      Maintenance of and Access to Records. The Servicer
         shall maintain each Receivable File at one of its offices specified in
         Schedule B to this Agreement, or at such other office as shall be
         specified to the Owner Trustee and the Indenture Trustee by prior
         written notice. The Servicer shall make available to the Owner Trustee
         and the Indenture Trustee and their duly authorized representatives,
         attorneys, or auditors a list of locations of the Receivable Files, the
         Receivable Files, and the related accounts, records, and computer
         systems maintained by the Servicer at such times as the Owner Trustee
         shall instruct.

                  (c)      Release of Documents. Upon instruction from the Owner
         Trustee, the Servicer shall release any document in a Receivable File
         to the Owner Trustee, the Owner Trustee's agent, or the Owner Trustee's
         designee, as the case may be, at such place or places as the Owner
         Trustee may designate, as soon as practicable.

         SECTION 7.05      Instructions; Authority to Act. The Servicer shall be
deemed to have received proper instructions with respect to the Receivable Files
upon its receipt of written instructions signed by a Responsible Officer of the
Owner Trustee.

         SECTION 7.06      Custodian's Indemnification. The Servicer, shall
indemnify the Trust, the Owner Trustee and the Indenture Trustee (which shall
include, for purposes of this Section 7.06, their directors, officers, employees
and agents) for any and all liabilities, obligations, losses, compensatory
damages, payments, costs, or expenses of any kind whatsoever that may be imposed
on, incurred, or asserted against the Trust, the Owner Trustee or the Indenture
Trustee as the result of any improper act or omission in any way relating to the
maintenance and custody by the Servicer of the Receivable Files; provided,
however, that the Servicer shall not be liable for any portion of any such
amount resulting from the willful misfeasance, bad faith, or negligence of the
Owner Trustee or the Indenture Trustee. This indemnity shall survive the
termination of this Agreement and the resignation or removal of the Owner
Trustee or the Indenture Trustee.

         SECTION 7.07      Effective Period and Termination. The Servicer's
appointment as custodian shall become effective as of the Cutoff Date and shall
continue in full force and effect until terminated pursuant to this Section
7.07. If the Servicer shall resign in accordance with the provisions of this
Agreement or if all of the rights and obligations of the Servicer shall have
been terminated under Section 13.01, the appointment of the Servicer as
custodian may be terminated by the Owner Trustee with the consent of the
Indenture Trustee and the Insurer (so long as the Insurer is not in default of
its obligations under the Policy). In addition, the Owner Trustee may terminate
the Servicer's appointment as custodian with cause at any time upon written
notification to the Servicer and the Indenture Trustee. As soon as practicable
after any termination of such appointment, the Servicer shall deliver the
Receivable Files to the Owner

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<PAGE>

Trustee or the Owner Trustee's agent at such place or places as the Owner
Trustee, with the consent of the Insurer and the Indenture Trustee, may
reasonably designate.

                                  ARTICLE VIII

                   ADMINISTRATION AND SERVICING OF RECEIVABLES

         SECTION 8.01      Duties of Servicer.

         (a)      The Servicer, for the benefit of the Trust and the Secured
         Parties, shall manage, service, administer, and make collections on the
         Receivables with reasonable care, using that degree of skill and
         attention that the Servicer exercises with respect to all comparable
         automotive receivables that it services for itself. The Servicer's
         duties shall include collection and posting of all payments, making
         Advances (in the Servicer's sole discretion), responding to inquiries
         of Obligors or of federal, state or local governmental authorities with
         respect to the Receivables, investigating delinquencies, sending
         payment coupons to Obligors, accounting for collections, and furnishing
         monthly and annual statements to the Owner Trustee and the Indenture
         Trustee with respect to distributions. The Servicer shall follow its
         customary standards, policies, and procedures in performing its duties
         as Servicer. Without limiting the generality of the foregoing, the
         Servicer is authorized and empowered by the Owner Trustee to execute
         and deliver, on behalf of itself, the Trust, the Owner Trustee, the
         Indenture Trustee or any of them, any and all instruments of
         satisfaction or cancellation, or partial or full release or discharge,
         and all other comparable instruments, with respect to such Receivables
         or to the Financed Vehicles securing such Receivables. If the Servicer
         shall commence a legal proceeding to enforce a Receivable or a
         Charged-Off Receivable, the Owner Trustee and the Indenture Trustee
         shall thereupon be deemed to have automatically assigned, solely for
         the purpose of collection, such Receivable to the Servicer. The Owner
         Trustee and the Indenture Trustee shall execute any documents prepared
         by the Servicer and delivered to the Owner Trustee for execution that
         are necessary or appropriate to enable the Servicer to carry out its
         servicing and administrative duties hereunder.

         (b)      The Servicer, unless the Standby Servicer is then acting as
         Servicer, in which case the Back-up Servicer (if BVAC is acting as the
         Servicer, at its expense, otherwise at the expense of the Trust), shall
         obtain on behalf of the Trust all licenses, if any, required by the
         laws of any jurisdiction to be held by the Trust in connection with
         ownership of the Receivables, and shall make all filings and pay all
         fees as may be required in connection therewith during the term hereof.

         (c)      The Servicer shall furnish to the Owner Trustee, the Indenture
         Trustee and the Insurer from time to time such additional information
         regarding the Trust as the Owner Trustee, the Indenture Trustee, or the
         Insurer shall reasonably request.

         SECTION 8.02      The Back-up Servicer.

         (a)      Prior to assuming any of the Servicer's rights and obligations
         and acting as successor Servicer hereunder, the Back-up Servicer shall
         only be responsible to perform

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<PAGE>

         those duties specifically imposed upon it by the provisions hereof, and
         shall have no obligations or duties under any agreement to which it is
         not a party.

         (b)      Subject to the Back-up Servicer's obligations pursuant to this
         Section 8.02, prior to assuming any of the Servicer's rights and
         obligations hereunder, the Back-up Servicer shall not be required 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 the repayment of such funds or adequate
         written indemnity against such risk or liability is not reasonably
         assured to it in writing prior to the expenditure or risk of such funds
         or incurrence of financial liability. Notwithstanding any provision to
         the contrary, the Back-up Servicer, in its capacity as such, and not in
         its capacity as successor Servicer, shall not be liable for any
         obligation of the Servicer contained in this Agreement so long as the
         Back-up Servicer performs in such capacity, and the parties shall look
         only to the Servicer to perform such obligations. The Back-up Servicer
         shall have no responsibility or liability in connection with the
         perfection or maintenance of a security interest in the Receivables.

         (c)      The Servicer shall have no liability, direct or indirect, to
         any party, for the acts or omissions of the Back-up Servicer, whenever
         such acts or omissions occur or whenever such liability is imposed.

         (d)      Notwithstanding anything to the contrary herein, the
         Controlling Party shall have the right in its sole and absolute
         discretion to remove and replace the Back-up Servicer. In the event
         that the Controlling Party exercises its right to remove and replace
         [__________] as Back-up Servicer, [__________] shall have no further
         obligation to perform the duties of the Back-up Servicer under this
         Agreement except as set forth in Section 12.02.

         (e)      To the extent the Back-up Servicer and the Indenture Trustee
         are the same party, the Back-up Servicer may resign under this
         Agreement upon 90 days' prior written notice to the Servicer, the
         Insurer and the Standby Servicer, and only to the extent such party is
         also resigning or being removed as Indenture Trustee hereunder or under
         the Indenture.

         SECTION 8.03      The Standby Servicer.

         (a)      Prior to assuming any of the Servicer's rights and obligations
         hereunder, the Standby Servicer shall only be responsible to perform
         those duties specifically imposed upon it by the provisions hereof, and
         shall have no obligations or duties under any agreement to which it is
         not a party.

         (b)      Prior to assuming any of the Servicer's rights and obligations
         hereunder, the Standby Servicer shall not be required 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 the repayment of such funds or adequate written indemnity
         against such risk or liability is not reasonably assured to it in
         writing prior to the expenditure or risk of such funds or incurrence of
         financial liability. Notwithstanding

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<PAGE>

         any provision to the contrary, the Standby Servicer, in its capacity as
         such, and not in its capacity as successor Servicer, shall not be
         liable for any obligation of the Back-up Servicer or the Servicer
         contained in this Agreement so long as the Standby Servicer performs in
         such capacity, and the parties shall look only to the Servicer and the
         Back-up Servicer to perform such obligations.

         (c)      The Servicer shall have no liability, direct or indirect, to
         any party, for the acts or omissions of the Standby Servicer, whenever
         such acts or omissions occur or whenever such liability is imposed.

         (d)      Notwithstanding anything to the contrary herein, the
         Controlling Party shall have the right, with or without cause, to
         remove the Standby Servicer in its sole discretion and replace the
         Standby Servicer. In the event that the Controlling Party exercises its
         right to remove and replace the Standby Servicer, such Person shall
         have no further obligation to perform the duties of the Standby
         Servicer under this Agreement except as set forth in Section 12.02.

         SECTION 8.04      Retention and Termination of Servicer. The Servicer
hereby covenants and agrees to act as such under this Agreement for an initial
term, commencing on the Closing Date and ending on __________, which term may be
extended by written notice delivered by the Insurer, so long as the Insurer is
the Controlling Party, for successive three month periods ending on each
successive three month period (or, pursuant to revocable written standing
instructions from time to time to the Servicer and the Indenture Trustee,
extended for any specified number of terms greater than one), until the
termination of the Issuer. If an Insurer Default shall have occurred and be
continuing, such term will automatically be renewed unless the Majority
Noteholders vote to remove the Servicer. Any such notice (including each notice
pursuant to standing instructions, which, if delivered, shall be deemed
delivered at the end of successive monthly terms for so long as such
instructions are in effect) (a "Servicer Extension Notice") shall be delivered
by the Insurer to the Indenture Trustee and the Servicer. The Servicer hereby
agrees that, as of the date hereof and upon its receipt of any such Servicer
Extension Notice, the Servicer shall become bound, for the initial term
beginning on the date hereof and for the duration of the term covered by such
Servicer Extension Notice, the Servicer shall become bound, for the initial term
beginning on the date hereof and for the duration of the term covered by such
Servicer Extension Notice, to continue as the Servicer subject to and in
accordance with the other provisions of this Agreement. The Servicer's terms
shall not be extended unless a Servicer Extension Notice is received on or
before the last day of such term. This Section shall not apply to the Back-up
Servicer or the Standby Servicer.

         SECTION 8.05      Collection of Receivable Payments.

         (a)      Consistent with the standards, policies and procedures
         required by this Agreement, the Servicer shall make reasonable efforts
         to collect all payments called for under the terms and provisions of
         such Receivables as and when the same shall become due and shall follow
         such collection procedures as it follows with respect to all comparable
         automotive receivables that it services for itself or others and, in
         any event, with no less degree of skill and care than would be
         exercised by a prudent servicer of similar motor vehicle retail
         installment sales contracts and installment sale loan

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<PAGE>

         and security agreements. If payments are modified, adjusted or extended
         in the ordinary course of the Servicer's collection procedures, and, as
         a result, any Receivable would be outstanding at the Stated Final
         Payment Date, then the Servicer shall be obligated to purchase such
         Receivable pursuant to Section 8.10 (unless such Receivable is
         otherwise being purchased pursuant to Section 15.02) as of the last day
         of the Collection Period immediately preceding the Stated Final Payment
         Date. The Servicer may in its discretion waive any late payment charge
         or any other fees that it is entitled to retain under Section 8.11, or
         other fee (to the extent consistent with its credit and collection
         policy on the Closing Date) that may be collected in the ordinary
         course of servicing a Receivable.

         (b)      All allocations of payments with respect to a simple-interest
         Receivable to principal and interest and determinations of periodic
         charges and the like shall be made using the simple interest method,
         based on either the actual number of days elapsed and the actual number
         of days in the calendar year or on the basis of a thirty-day month and
         a 360-day calendar year, as specified in the related installment sales
         contract or installment loan and security agreement. Each payment on a
         simple interest Receivable shall be applied first to the amount of
         interest accrued on such Receivable to the date of receipt; second, to
         principal due on such Receivable; third, to late charges, if any,
         accrued on such Receivable; and last, to reduce the remaining principal
         amount outstanding on such Receivable. Payments made by or on behalf of
         an Obligor including any Payaheads previously made and added to the
         Payahead Balance with respect to a Precomputed Receivable shall be
         applied first to overdue Scheduled Payments (including reduction of
         Outstanding Advances as provided in Section 9.04). Next, any excess
         shall be applied to the Scheduled Payment and any remaining excess
         shall be added to the Payahead Balance, and shall be applied to prepay
         the Precomputed Receivable, but only if such Payahead Balance shall be
         sufficient to prepay the Receivable in full. Otherwise, any such
         remaining excess payments shall constitute a Payahead and shall
         increase the Payahead Balance.

         SECTION 8.06      Realization Upon Receivables.

         (a)      On behalf of the Trust and the Secured Parties the Servicer
         shall use its best efforts, consistent with its customary servicing
         procedures, to repossess or otherwise convert the ownership of the
         Financed Vehicle securing any Receivable as to which the Servicer shall
         have determined that eventual payment in full is unlikely. The Servicer
         shall follow such customary and usual practices and procedures as it
         shall deem necessary or advisable in its servicing of automotive
         receivables, which may include reasonable efforts to realize upon any
         recourse to Dealers and selling the Financed Vehicle at public or
         private sale. The foregoing shall be subject to the provision that, in
         any case in which the Financed Vehicle shall have suffered damage, the
         Servicer shall not expend funds in connection with the repair or the
         repossession of such Financed Vehicle unless it shall determine in its
         discretion that such repair and/or repossession will increase the
         Liquidation Proceeds. After appropriate disposition of the Financed
         Vehicle, the Servicer shall also take such measures as it deems
         reasonable and appropriate to realize value in respect of any
         deficiency balance of the Receivable including pursuit of action on
         behalf of the Trust and/or the Secured Parties against the Obligor or
         public or

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<PAGE>

         private sale of the remaining interest of the Trust and/or the Secured
         Parties in such Receivable.

         (b)      Unless otherwise stated in this Agreement, the Servicer shall
         either purchase or liquidate each Financed Vehicle that has not
         previously been liquidated and that secures, or previously secured, a
         Charged-Off Receivable either (i) by the end of the Collection Period
         preceding the final scheduled Payment Date during the life of the Trust
         or (ii) if earlier, by the end of the ninth Collection Period following
         the Collection Period during which such Receivable became a Charged-Off
         Receivable. Any purchase of a Financed Vehicle by the Servicer shall be
         made at a price equal to the fair market value of the Financed Vehicle
         as determined by the Servicer in accordance with the Servicer's normal
         servicing standards.

         SECTION 8.07      Physical Damage Insurance. The Servicer, in
accordance with its customary servicing procedures and underwriting standards,
shall require that each Obligor shall have obtained and shall maintain physical
damage insurance covering the Financed Vehicle.

         SECTION 8.08      Maintenance of Security Interests in Financed
Vehicles. The Servicer shall, in accordance with its customary servicing
procedures, take such steps as are necessary to ensure that perfection of the
security interest created by each Receivable in the related Financed Vehicle has
been obtained, and to maintain such security interest. The Owner Trustee and the
Indenture Trustee hereby authorize the Servicer to take such steps as are
necessary to re-perfect such security interest on behalf of the Trust in the
event of the relocation of a Financed Vehicle or for any other reason. Without
limiting the forgoing, in the event that the Servicer consigns a repossessed
Financed Vehicle to an affiliate for liquidation, it shall take such measures as
are necessary or appropriate to maintain the security interest in the Financed
Vehicle in the hands of the consignee until such Financed Vehicle is liquidated,
including appropriate precautionary UCC-1 filings. In addition, BVAC and/or such
affiliate will notify the creditors, if any, of such affiliate that have entered
into a consignment arrangement on or before such arrangements are made.

         SECTION 8.09      Covenants of Servicer. The Servicer shall not release
a Financed Vehicle securing any Receivable from the security interest granted by
such Receivable in whole or in part except in the event of payment in full by
the Obligor thereunder or repossession, nor shall the Servicer impair the rights
of the Certificateholders or the Secured Parties in the Receivables, nor shall
the Servicer change the amount of the Scheduled Payment under a Receivable or
change the Amount Financed under a Receivable or reduce the Contract Rate of a
Receivable (except if so ordered by a bankruptcy court in a proceeding
concerning the Obligor or otherwise mandated by law).

         SECTION 8.10      Purchase of Receivables Upon Breach. The Servicer or
the Owner Trustee shall inform the other party and the Insurer promptly, in
writing, upon the discovery of (i) any breach by the Servicer of its obligations
under Sections 8.01, 8.05, 8.06, 8.07, 8.08 or 8.09 or (ii) the existence of the
Servicer's obligation to purchase a Receivable pursuant to Section 8.05(a). This
obligation shall not constitute an obligation on the part of the Owner Trustee
to discover any such breaches or circumstances. Unless such breach shall have
been cured by the Second Record Date following the discovery or notice of such
breach, the Servicer

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<PAGE>

shall on such day purchase any Receivable materially and adversely affected by
such breach (or, at the Servicer's election, the first Record Date following the
discovery or notice of such breach). In consideration of the purchase of such
Receivable, the Servicer shall remit the Purchase Amount with respect to such
Receivable in the manner specified in Section 9.03. The sole remedy of the Owner
Trustee, the Trust, or the Secured Parties with respect to the aforementioned
breaches or the grant of an extension which triggers an obligation of the
Servicer under Section 8.05(a) shall be to require the Servicer to purchase
Receivables pursuant to this Section 8.10, except as provided in Section 12.02.

         SECTION 8.11      Servicing Fee

            (a)   The Servicer shall be entitled to a Servicing Fee as defined
         herein. The Servicer shall also be entitled to retain, and need not
         deposit in the Collection Account, all late fees, prepayment charges
         and other administrative fees and expenses or similar charges allowed
         by applicable law with respect to the Receivables, collection (from
         whatever source) on the Receivables during such Collection Period (the
         Supplemental Servicing Fee").

            (b)   So long as it has not become the Servicer, the Back-up
         Servicer shall be entitled to the Back-up Servicing Fee. If it becomes
         the Servicer, the Back-up Servicer will be entitled to the Servicing
         Fee.

            (c)   So long as it has not become the Servicer, the Standby
         Servicer will be entitled to the Standby Servicer Fee. If it becomes
         the Servicer, the Standby Servicer will be entitled to the fee set
         forth in Schedule C in its capacity as successor Servicer.

            (d)   Neither the Indenture Trustee, Back-up Servicer or Standby
         Servicer shall be liable for any differential between the Servicing Fee
         and the amount necessary to induce a successor servicer to accept its
         appointment as such pursuant to this Agreement.

            (e)   Each of the Servicer, the Back-up Servicer and the Standby
         Servicer acknowledge and agree that any fees, expenses, costs,
         indemnities and other amounts, including without limitation, Transition
         Costs, payable to the servicer, the Back-up Servicer and the standby
         Servicer shall not be payable form amounts owed or paid under the
         Policy.

         SECTION 8.12      Servicer's Certificate. On or before the
Determination Date following each Collection Period, the Servicer shall deliver
to the Owner Trustee, the Indenture Trustee and the Insurer a Servicer's
Certificate in substantially the form of Exhibit 3 attached hereto containing
all information necessary to make the distributions pursuant to Section 8.04 of
the Indenture (so long as the Notes remain outstanding) for the Collection
Period preceding the date of such Servicer's Certificate and all information
necessary for the Indenture Trustee to send statements to the Noteholders,
including (A) the amount of aggregate collections on the Receivables, (B) the
aggregate Purchase Amount of the Receivables repurchased by BVAC and purchased
by the Servicer, (C) with respect to Precomputed Receivables the net deposit
from the Collection Account to the Payahead Account or the net withdrawal from
the Payahead Account to the Collection Account required for the Collection
Period in accordance with Section 9.09,

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<PAGE>

and in the case of a net withdrawal, the Monthly Interest and Monthly Principal
reported on such Servicer's Certificate shall reflect the portions of such
withdrawal allocable to interest and principal, respectively, in accordance with
this Agreement, (D) the amount of the payment allocable to principal; (E) the
amount of the payment allocable to interest; (F) the amount of the servicing fee
paid to the Servicer with respect to the related Collection Period; (G) the
aggregate principal balance of the Notes as of the payment date after giving
effect to all payments under clause (D) above on such date; (H) the balance of
any Spread Account or other form of credit enhancement, after giving effect to
any additions thereto or withdrawals therefrom or reductions thereto to be made
on the following payment date; (I) the aggregate net losses on the Receivables
for the related Collection Period; (J) the amount of Advances from the Servicer
for such Collection Period; the aggregate amount of Outstanding Advances for
such Collection Period; and the amount of Advances reimbursed to the Servicer
for such Collection Period based on the fact that the related Receivable became
a Charged-off Receivable during the prior Collection Period; (K) the amount, if
any, to be withdrawn from the Spread Account and the amount, if any, to be drawn
on the Policy, (L) information respecting (i) delinquent Receivables that are
30, 60 and 90 days past due, and (ii) the number of repossessions of Financed
Vehicles during the preceding Collection Period, number of unliquidated
repossessed Financed Vehicles, gross and net losses on the Receivables, and
Recoveries; and (M) each other item listed in Section 8.04 of the Indenture
reasonably requested by a Rating Agency, the Indenture Trustee or the Insurer in
order to monitor the performance of the Receivables. Receivables purchased by
BVAC as of the last day of such Collection Period shall be identified by the
BVAC account number with respect to such Receivable (as specified in Schedule A
to this Agreement).

         SECTION 8.13      Annual Statement as to Compliance; Notice of Default.

            (a)   The Servicer shall deliver to the Owner Trustee, the Indenture
         Trustee, the Standby Services, the Back-up Servicer, the Rating
         Agencies, and the Insurer, on or before April 30 of each year,
         beginning on the first April 30 that is at least six months after the
         Closing Date, an Officers' Certificate, dated as of December 31 of the
         preceding year, stating that (i) a review of the activities of the
         Servicer during the preceding 12-month period (or in the case of the
         initial Officer's Certificate, the period from the Closing Date to and
         including the date of such Officer's Certificate) and of its
         performance under this Agreement has been made under such officer's
         supervision and (ii) to the best of such officer's knowledge, based on
         such review, the Servicer has fulfilled all its obligations under this
         Agreement throughout such year, or, if there has been a default in the
         fulfillment of any such obligation, specifying each such default known
         to such officer and the nature and status thereof. A copy of such
         certificate and the report referred to in Section 8.14 may be obtained
         by any Certificateholder at its own expense by a request in writing to
         the Owner Trustee addressed to the Corporate Trust Office.

            (b)   The Servicer shall deliver to a Responsible Officer of the
         Owner Trustee, the Indenture Trustee, the Standby Servicer, the Back-up
         Servicer, the Rating Agencies, and the Insurer, promptly after having
         obtained knowledge thereof, but in no event later than 5 Business Days
         thereafter, written notice in an Officers' Certificate of any event
         which with the giving of notice or lapse of time, or both, would become
         an Event of Servicer Default under Section 13.01. The Transferor or
         BVAC shall deliver to a

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         Responsible Officer of the Owner Trustee, the Indenture Trustee, the
         Standby Servicer, the Back-up Servicer, the Rating Agencies, and the
         Insurer, promptly after having obtained knowledge thereof, but in no
         event later than 5 Business Days thereafter, written notice in an
         Officers' Certificate of any event which with the giving of notice or
         lapse of time, or both, would become an Event of Servicer Default under
         clause (ii) of Section 13.01.

         SECTION 8.14      Annual Independent Certified Public Accountant's
Report

            (a)   The Servicer shall cause a firm of independent certified
         public accountants, who may also render other services to the Servicer,
         to deliver to the Owner Trustee, the Indenture Trustee, the Standby
         Servicer, the Back-up Servicer, the Rating Agencies and the Insurer on
         or before September 30 of each year concerning the 12-month period
         ended June 30 of such year (or shorter period since the date of this
         Agreement), beginning on the first September 30 following the first
         June 30 after the Closing Date, a report addressed to the Board of
         Directors of the Servicer to the effect that such firm has reviewed the
         servicing of the Receivables by the Servicer and that such review (1)
         included tests relating to new or used automobile, van, light-duty
         truck, recreational vehicle or motorcycle loans serviced for others in
         accordance with the requirements of the Uniform Single Audit Program
         for Mortgage Bankers, to the extent the procedures in such program are
         applicable to the servicing obligations set forth in the Agreement, and
         (2) except as described in the report, disclosed no exceptions or
         errors in the records relating to automobile, van, light-duty truck,
         recreational vehicle or motorcycle loans serviced for others that, in
         the firm's opinion, paragraph four of such program requires such firm
         to report.

            (b)   The report will also indicate that the firm is independent of
         the Servicer within the meaning of the Code of Professional Ethics of
         the American Institute of Certified Public Accountants.

            (c)   If the Standby Servicer is then acting as the successor
         Servicer, it shall only be required to provide a copy of its annual SAS
         70 report and its audited financial statements.

         SECTION 8.15      Access to Certain Documentation and Information
Regarding Receivables. The Servicer shall provide to the Owner Trustee,
Indenture Trustee, the Standby Servicer, the Backup Servicer, the Rating
Agencies, and the Insurer access to the Receivables Files in such cases where
such parties shall be required by applicable statutes or regulations to review
such documentation. Access shall be afforded without charge, but only upon
reasonable request and during the normal business hours at the respective
offices of the Servicer. Nothing in this Section shall affect the obligation of
the Servicer to observe any applicable law prohibiting disclosure of information
regarding the Obligors, and the failure of the Servicer to provide access to
information as a result of such obligation shall not constitute a breach of this
Section 8.15.

         SECTION 8.16      Servicer Expenses. The Servicer shall be required to
pay all expenses incurred by it in connection with its activities hereunder,
including fees and disbursements of

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independent accountants, taxes imposed on the Servicer, and expenses incurred in
connection with regular payments and reports to Noteholders, the Indenture
Trustee and the Insurer.

         SECTION 8.17      Reports to Noteholders. The Owner Trustee shall
provide to any Noteholder who so requests in writing (addressed to the Corporate
Trust Office) a copy of any certificate described in Section 8.12, the annual
statement described in Section 8.13, or the annual report described in Section
8.14. The Indenture Trustee may require the requesting party to pay a reasonable
sum to cover the cost of the Indenture Trustee's complying with such request.

                                   ARTICLE IX

         COLLECTIONS; DISTRIBUTIONS TO NOTEHOLDERS AND CERTIFICATEHOLDERS

         SECTION 9.01      Collection Account. The Transferor shall establish
the Collection Account with an Eligible Bank as a segregated trust account in
the name of the Trust for the benefit of the Secured Parties with the Indenture
Trustee (at the Indenture Trustee Office) or another Eligible Bank. The Servicer
shall direct the Indenture Trustee to invest the amounts in the Collection
Account in Eligible Investments that mature not later than the Business Day
prior to the next succeeding Payment Date and to hold such Eligible Investments
to maturity. The Indenture Trustee (or its custodian) shall (i) maintain
possession of any negotiable instruments or securities evidencing Eligible
Investments until the time of sale or maturity and each certificated security or
negotiable instrument evidencing an Eligible Investment shall be endorsed in
blank or to the Indenture Trustee or registered in the name of the Owner Trustee
and (ii) cause any Eligible Investment represented by an uncertificated security
to be registered in the name of the Indenture Trustee.

         SECTION 9.02       Collections.

            (a)   The Servicer shall remit to the Collection Account all
         payments by or on behalf of the Obligors on the Receivables and all
         Liquidation Proceeds, both as collected during the Collection Period
         net of Servicing Fees and administrative fees allowed to be retained by
         the Servicer pursuant to Section 8.11 and net of charge backs
         (attributable to errors in posting, returned checks, or rights of
         offset for amounts that should not have been paid or that must be
         refunded as the result of a successful claim or defense under
         bankruptcy or similar laws) not later than the second Business Day
         following the Business Day on which such amounts are received by the
         Servicer. Notwithstanding the foregoing, for so long as (a) BVAC
         remains the Servicer, (b) no Event of Default shall have occurred and
         be continuing and (c)(1) BVAC maintains a short-term rating of at least
         A-1 by Standard & Poor's and P-1 by Moody's (and for five Business Days
         following a reduction in either such rating) or (2) prior to ceasing
         daily remittances, the Rating Agency Condition shall have been
         satisfied (and any conditions or limitations imposed by the Rating
         Agencies in connection therewith are complied with) and the prior
         written consent of the Insurer (not to be unreasonably withheld) shall
         have been obtained, the Servicer may remit all such payments and
         Liquidation Proceeds with respect to any Collection Period to the
         Collection Account on a less frequent basis, but in no event later than
         the Determination Date immediately preceding each Payment Date. The
         Servicer

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         shall remit any Advances with respect to a Collection Period to the
         Collection Account on or before the Determination Date.

            (b)   The Servicer, the Owner Trustee and/or Indenture Trustee shall
         deposit in the Collection Account any funds received by such parties in
         respect of funds drawn under the Policy from the Insurer.

            (c)   If the Available Funds for a Payment Date are insufficient to
         pay current and past due Insurance Premiums, or any amounts owing to
         the Insurer pursuant to the Insurance Agreement including, without
         limitation, reimbursements, indemnities, fees and expenses, plus
         accrued interest thereon, to the Insurer, the Servicer shall notify the
         Owner Trustee and the Indenture Trustee of such deficiency, and the
         Available Spread Amount, if any, then on deposit in the Spread Account
         (after giving effect to any withdrawal to satisfy a deficiency in
         Monthly Interest or Monthly Principal) shall be available to cover such
         deficiency.

         SECTION 9.03      Additional Deposits

            (a)   (i) Not later than the Determination Date, the Servicer or
         BVAC shall remit to the Collection Account the aggregate Purchase
         Amount for such Collection Period pursuant to Sections 7.02 and 8.10;
         and (ii) not later than 11:00 a.m. (New York City time) on the related
         Payment Date, the Servicer shall remit to the Collection Account the
         Optional Disposition Price for Receivables on such Payment Date
         pursuant to section 15.02.

            (b)   Following the acceleration of the Notes pursuant to Section
         5.02 of the Indenture, any proceeds of the Pledged Assets shall be
         deposited in the Collection Account to be distributed by the Indenture
         Trustee in accordance with Section 8.04(g) of the Indenture.

            (c)   On or before each Payment Date, the Indenture Trustee shall
         transfer to the Collection Account any amounts transferred to the
         Indenture Trustee from the Spread Account.

            (d)   On or before the Redemption Date, the Indenture Trustee shall
         deposit in the Collection Account the Redemption Price paid by or on
         behalf of the Issuer pursuant to Article XI of the Indenture.

         SECTION 9.04      Application of Funds.

            (a)   On each Determination Date, the Servicer shall determine the
         amount of Available Funds and the amount of funds necessary to make the
         distributions required pursuant to Section 8.04(a) of the Indenture on
         the next Payment Date. The Servicer shall by a Servicer's Certificate
         on or before the Determination Date notify the Owner Trustee, the
         Indenture Trustee and the Insurer of such amounts by telecopy to the
         Corporate Trust Office, the Indenture Trustee Office and the address of
         the Insurer set forth in Section 16.05 or to such numbers as the Owner
         Trustee, Indenture Trustee or the

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         Insurer may from time to time provide, followed promptly by mailing
         such notice to the Owner Trustee, the Indenture Trustee and the
         Insurer.

            (b)   On any Payment Date on which there are not sufficient
         Available Funds to make the distributions required pursuant to Section
         8.04(a)(i) through (viii) of the Indenture, the Indenture Trustee, or
         the Servicer on its behalf, shall withdraw from the Spread Account, to
         the extent of the Available Spread Amount, an amount equal to such
         deficiency and promptly deposit such amount in the Collection Account.
         If such deficiency exceeds the Available Spread Amount, the Servicer
         shall submit a claim under the Policy to the Insurer pursuant to
         Section 9.03 of the Indenture. All amounts paid under the Policy shall
         be applied by the Indenture Trustee pursuant to Section 8.04 of the
         Indenture.

            (c)   On each Payment Date, the Owner Trustee shall distribute to
         each Certificateholder such Certificateholder's interest and principal,
         if any, for such Distribution Date, as received from the Indenture
         Trustee pursuant to Section 8.04 of the Indenture on such Distribution
         Date.

            (d)   On each Payment Date, the Owner Trustee shall send to the
         Certificateholder the Servicer's Certificate provided to the Owner
         Trustee by the Servicer for such Payment Date.

            (e)   Subject to Section 15.01, distributions required to be made to
         Certificateholders on any Payment Date shall be made to each
         Certificateholder of record on the preceding Record Date either by wire
         transfer, in immediately available funds, to the account of such
         Certificateholder at a bank or other entity having appropriate
         facilities therefor, or by check mailed to such Certificateholder at
         the address of such Certificateholder appearing in the Certificate
         Register.

         SECTION 9.05      Advances

            (a)   (i) As of the last day of the initial Collection Period, the
         Servicer shall advance funds equal to the excess, if any, of Monthly
         Interest due in respect of the initial Collection Period, over the
         Collected Interest for such Collection Period; and (ii) as of the last
         day of each subsequent Collection Period, the Servicer shall advance
         funds in the amount of the Interest Advance Amount (or such other
         amount as the Servicer shall reasonably determine to cover an Interest
         Shortfall) with respect to each Receivable that is delinquent for more
         than 30 days, in each such case, to the extent that the Servicer, in
         its sole discretion, determines that the Advance will be recoverable
         from payments by or on behalf of the Obligor, the Purchase Amount, or
         Liquidation Proceeds. With respect to each Receivable, the Advance paid
         pursuant to this Section 9.05 shall increase Outstanding Advances.
         Outstanding Advances shall be reduced by subsequent payments by or on
         behalf of the Obligor, collections of Liquidation Proceeds, or payments
         of the Purchase Amount. The Servicer shall remit any Advances with
         respect to a Collection Period to the Collection Account by the related
         Determination Date.

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            (b)   If the Servicer shall determine that an Outstanding Advance
         with respect to any Receivable shall not be recoverable, the Servicer
         shall be reimbursed from any collections made on other Receivables in
         the Trust, and Outstanding Advances with respect to such Receivable
         shall be reduced accordingly.

            (c)   No successor Servicer shall be obligated to make advances
         under this Agreement and shall not be liable for Advances incurred by
         the Servicer before the commencement of performance by such successor
         Servicer.

         SECTION 9.06      Net Deposits. For so long as Bay View Acceptance
Corporation is the Servicer, Bay View Acceptance Corporation (in whatever
capacity) may make the remittances with respect to any Payment Date pursuant to
Section 9.02 above, net of amounts to be distributed to itself or its delegee
under Section 12.06 (also in whatever capacity), if it determines pursuant to
Section 9.02 that there is no deficiency in Available Funds for such Payment
Date. Nonetheless, the Servicer shall account for all of the above described
amounts as if such amounts were deposited and distributed.

         SECTION 9.07      No Segregation of Moneys; No Interest. Subject to
Section 9.04, moneys received by the Owner Trustee hereunder need not be
segregated in any manner except to the extent required by law or this Agreement
and may be deposited under such general conditions as may be prescribed by law,
and the Owner Trustee shall not be liable for any interest thereon.

         SECTION 9.08      Accounting and Reports to the Certificateholder, the
Internal Revenue Service and Others. The Owner Trustee shall deliver to the
Certificateholder, as may be required by the Code and applicable Treasury
Regulations, or as may be requested by such Certificateholder, such information,
reports or statements as may be necessary to enable each Owner to prepare its
federal and state income tax returns. Consistent with the Trust's
characterization for tax purposes as a security arrangement for the issuance of
non-recourse debt so long as the Transferor or any other Person is the sole
beneficiary owner of the Trust, no federal income tax return shall be filed on
behalf of the Trust unless either (i) the Owner Trustee shall receive an Opinion
of Counsel that, based on a change in applicable law occurring after the date
hereof, or as a result of a transfer by the Company permitted by Section 10.03,
the Code requires such a filing or (ii) the Internal Revenue Service shall
determine that the Trust is required to file such a return. In the event that
there shall be two or more beneficial owners of the Trust, the Owner Trustee
shall inform the Indenture Trustee in writing of such event, (x) the Owner
Trustee shall prepare or shall cause to be prepared federal and, if applicable,
state or local partnership tax returns required to be filed by the Trust and
shall remit such returns to the Transferor (or if the Transferor no longer owns
the Certificate, to the Transferor to the extent its tax liability is affected
thereby and otherwise to the successor Certificateholder) at least (5) days
before such returns are due to be filed, and (y) capital accounts shall be
maintained for each beneficial owner in accordance with the Treasury Regulations
under Section 704(b) of the Code reflecting each such beneficial owner's share
of the income, gains, deductions, and losses of the Trust and/or guaranteed
payments made by the Trust and contributions to, and distributions from, the
Trust. The Transferor (or such successor Certificateholder, as applicable) shall
promptly sign such returns and deliver such returns after signature to the Owner
Trustee and such returns shall be filed by the Owner Trustee with the
appropriate tax authorities. In the event

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that a "tax matters partner" (within the meaning of Code Section 6231(a)(7)) is
required to be appointed with respect to the Trust, the Transferor is hereby
designated as tax matters partner or, if the Transferor is not the
Certificateholder, the Transferor to the extent its tax liability is affected
thereby and otherwise the successor Certificateholder, shall be designated as
tax matters partner. In no event shall the Owner Trustee or the Transferor (or
such designee Certificateholder, as applicable) be liable for any liabilities,
costs or expenses of the Trust or the Noteholders arising out of the application
of any tax law, including federal, state, foreign or local income or excise
taxes or any other tax imposed on or measured by income (or any interest,
penalty or addition with respect thereto or arising from a failure to comply
therewith) except for any such liability, cost or expense attributable to any
act or omission by the Owner Trustee or the Transferor (or such designee
Certificateholder as applicable), as the case may be, in breach of its
obligations under this Agreement.

         SECTION 9.09      Payahead Account. The Servicer shall establish the
Payahead Account in the name of the Trust on behalf of the Obligors, the
Noteholders and the Insurer as their interests may appear. The Servicer shall
maintain the Payahead Account pursuant to Section 8.07 of the Indenture.

                                   ARTICLE X

                                THE CERTIFICATES

         SECTION 10.01     The Certificates. The Certificates shall be issued in
the form of one or more certificates and shall initially be issued to the
Transferor. The Certificates shall be executed on behalf of the Trust by manual
or facsimile signature of a Responsible Officer of the Owner Trustee.
Certificates bearing the manual or facsimile signatures of individuals who were,
at the time when such signatures shall have been affixed, authorized to sign on
behalf of the Trust, shall be valid and binding obligations of the Trust,
notwithstanding that such individuals or any of them shall have ceased to be so
authorized prior to the authentication and delivery of such Certificates or did
not hold such offices at the date of such Certificates.

         SECTION 10.02     Authentication of Certificates. The Owner Trustee
shall cause the Certificates to be executed on behalf of the Trust,
authenticated, and delivered to or upon the written order of the Transferor,
signed by its chairman of the board, its president, or any vice president,
without further corporate action by the Transferor, in authorized denominations,
pursuant to this Agreement. No Certificate shall entitle its holder to any
benefit under this Agreement, or shall be valid for any purpose, unless there
shall appear on such Certificate a certificate of authentication, substantially
as set forth in the forms of Certificate attached as Exhibits to this Agreement,
executed by a Responsible Officer of the Owner Trustee by manual signature; such
authentication shall constitute conclusive evidence that such Certificate shall
have been duly authenticated and delivered hereunder. All Certificates shall be
dated the date of their authentication.

         SECTION 10.03     Registration of Transfer and Exchange of Certificates

            (a)   The Owner Trustee shall keep or cause to be kept, at the
         Corporate Trust Office, a Certificate Register in which, subject to
         such reasonable regulations as it may

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         prescribe, the Owner Trustee shall provide for the registration of
         Certificates and of transfers and exchanges of Certificates subject to
         the restrictions provided herein.

            (b)   Upon surrender for registration of transfer of any Certificate
         at the Corporate Trust Office, the Owner Trustee shall execute,
         authenticate, and deliver, in the name of the designated transferee or
         transferees, one or more new Certificates in authorized denominations
         of a like aggregate amount dated the date of authentication by the
         Owner Trustee, provided, however, that registration of transfer of the
         Certificates may not be effected unless (A) the Owner Trustee receives
         an Opinion of Counsel, satisfactory to it, to the effect that (i) such
         transfer may be made in reliance upon an exemption from the
         registration requirements of the Securities Act of 1933, as amended,
         and (ii) such transfer will not adversely affect the tax treatment of
         the Trust or the Notes; (B) the Insurer has consented to such transfer
         and (C) the Rating Agency Condition shall have been satisfied with
         respect to such transfer.

            (c)   Every Certificate presented or surrendered for registration of
         transfer or exchange shall be accompanied by a written instrument of
         transfer in form satisfactory to the Owner Trustee duly executed by the
         Holder or his attorney duly authorized in writing. Each Certificate
         surrendered for registration of transfer and exchange shall be canceled
         and subsequently destroyed by the Owner Trustee.

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

         SECTION 10.04     Mutilated, Destroyed, Lost, or Stolen Certificates.
If (a) any mutilated Certificate shall be surrendered to the Owner Trustee, or
if the Owner Trustee shall receive evidence to its satisfaction of the
destruction, loss, or theft of any Certificate and (b) there shall be delivered
to the Owner Trustee such security or indemnity as may be required by it to save
it harmless, then in the absence of notice that such Certificate shall have been
acquired by a bona fide purchaser, the Owner Trustee on behalf of the Trust
shall execute and the Owner Trustee shall authenticate and deliver, in exchange
for or in lieu of any such mutilated, destroyed, lost, or stolen Certificate, a
new Certificate of like tenor and denomination. In connection with the issuance
of any new Certificate under this Section 10.04, the Owner Trustee may require
the payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection therewith. Any duplicate Certificate issued
pursuant to this Section 10.04 shall constitute conclusive evidence of ownership
in the Trust, as if originally issued, whether or not the lost, stolen, or
destroyed Certificate shall be found at any time.

         SECTION 10.05     Agreement Regarding Tax Matters. The Owner Trustee,
the Transferor as initial Certificateholder and each successor Certificateholder
(as a condition to acquiring its Certificate) agree to disregard the Trust as a
separate entity and to treat the Notes as indebtedness for federal, state and
local income and franchise tax purposes.

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         SECTION 10.06     Signature on Returns; Tax Matters Partner.

            (a)   The Transferor shall sign on behalf of the Trust the tax
         returns of the Trust.

            (b)   If Subchapter K of the Code should be applicable to the Trust,
         the Transferor shall be designated the "tax matters partner" of the
         Trust pursuant to Section 6231(a)(7)(A) of the Code and applicable
         Treasury Regulations.

                                   ARTICLE XI

                                 THE TRANSFEROR

         SECTION 11.01     Representations and Undertakings of Transferor.

            (a)   The Transferor makes the following representations on which
         the Trust relies in accepting the Receivables in trust and executing
         and authenticating the Certificates and undertaking its obligations
         under the Indenture. The Transferor agrees that the representations
         shall also be for the benefit of the Secured Parties. The
         representations speak as of the execution and delivery of this
         Agreement and shall survive the sale of the Receivables to the Trust
         and the subsequent pledge of the receivables to the Indenture Trustee.

                  (i)      Organization and Good Standing. The Transferor is
                           duly organized and validly existing as a corporation
                           in good standing under the laws of the State of
                           Delaware, with power and authority to own its
                           properties and to conduct its business as such
                           properties shall be currently owned and such business
                           is presently conducted, and had at all relevant
                           times, and shall have, power, authority, and legal
                           right to acquire and own the Receivables.

                  (ii)     Due Qualification. The Transferor is duly qualified
                           to do business as a foreign corporation in good
                           standing, and has obtained all necessary licenses and
                           approvals in all jurisdictions in which the ownership
                           or lease of property or the conduct of its business
                           shall require such qualifications, licenses and/or
                           approvals, other than where the failure to obtain
                           such qualification, license or approval would not
                           have a material adverse effect on the ability of the
                           Transferor to perform its obligations under this
                           Agreement, on any Receivable or on the interest
                           therein of the Issuer, the Noteholders or the Insurer

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

                  (iv)     Binding Obligation. This Agreement shall constitute a
                           legal, valid, and binding obligation of the
                           Transferor enforceable in accordance with its terms
                           except only as such enforcement may be limited by
                           bankruptcy,

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                           insolvency or similar laws affecting the enforcement
                           of creditors' rights generally.

                  (v)      No Violation. The consummation of the transactions
                           contemplated by the Agreement and the fulfillment of
                           the terms hereof shall not conflict with, result in
                           any breach of any of the terms and provisions of, nor
                           constitute (with or without notice or lapse of time)
                           a default under, the charter or by-laws of the
                           Transferor, or any indenture, agreement, or other
                           instrument to which the Transferor is a party or by
                           which it shall be bound; nor result in the creation
                           or imposition of any Lien upon any of its properties
                           pursuant to the terms of any such indenture,
                           agreement, or other instrument (other than this
                           Agreement); nor violate any law or, to the best of
                           the Transferor's knowledge, any order, rule, or
                           regulation applicable to the Transferor of any court
                           or of any federal or State regulatory body,
                           administrative agency, or other governmental
                           instrumentality having jurisdiction over the
                           Transferor or its properties.

                  (vi)     No Proceedings. There are no proceedings or
                           investigations pending, or, to the Transferor's best
                           knowledge, threatened, before any court, regulatory
                           body, administrative agency, or other governmental
                           instrumentality having jurisdiction over the
                           Transferor or its properties: (A) asserting the
                           invalidity of this Agreement, (B) seeking to prevent
                           the consummation of any of the transactions
                           contemplated by this Agreement, (C) seeking any
                           determination or ruling that might materially and
                           adversely affect the performance by the Transferor of
                           its obligations under, or the validity or
                           enforceability of, this Agreement, or (D) which might
                           adversely affect the federal income tax attributes of
                           the Trust.

                  (vii)    No Consents. No consent, approval, authorization or
                           order of or declaration or filing with any
                           governmental authority is required to be obtained by
                           the Transferor for the consummation of the
                           transactions contemplated by this Agreement, except
                           such as have been duly made or obtained or where the
                           failure to obtain such consent, approval,
                           authorization, order or declaration, or to make such
                           filing, would not have a material adverse effect on
                           the ability of the Transferor to perform its
                           obligations under this Agreement or on any Receivable
                           or the interest therein of the Issuer, the
                           Noteholders or the Insurer.

                  (viii)   Valid Assignment. Each Receivable has been validly
                           assigned by the Transferor to the Issuer on the
                           Closing Date pursuant to this agreement and no
                           Receivable has been sold, transferred, assigned or
                           pledged by the Transferor to any Person other than
                           the Issuer.

                  (ix)     The Transferor's exact legal name is and for the
                           preceding four months has been Bay View Transaction
                           Corporation.

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                  (x)      The Transferor's chief executive office is located in
                           San Mateo, California.

                  (b)      The Transferor further covenants that, prior to
                           termination of the Trust:

                  (i)      It will not engage at any time in any business or
                           business activity other than such activities
                           expressly set forth in its Certificate of
                           Incorporation delivered to the Insurer on or prior to
                           the Closing Date, and will not amend its Certificate
                           of Incorporation without the prior written consent of
                           the Insurer (so long as the Insurance Agreement has
                           not been terminated).

                  (ii)     It will not, without the consent of the Insurer (so
                           long as the Insurance Agreement has not been
                           terminated), sell, assign, pledge or otherwise
                           transfer, in whole, or in part or in any series of
                           related or unrelated transactions any of its right,
                           title or interest in or to the Certificates.

                  (iii)    It will not:

                           (A)      Fail to do all things necessary to maintain
                                    its corporate existence separate and apart
                                    from BVAC and any other Person, including,
                                    without limitation, holding regular meetings
                                    of its stockholders and board of directors
                                    and maintaining appropriate corporate books
                                    and records (including a current minute
                                    book);

                           (B)      Suffer any limitation on the authority of
                                    its own directors and officers to conduct
                                    its business and affairs in accordance with
                                    their independent business judgment or
                                    authorize or suffer any Person other than
                                    its own officers and directors to
                                    customarily delegated to others under powers
                                    of attorney) for which a corporation's own
                                    Officers and directors would customarily be
                                    responsible;

                           (C)      Fail to (i) maintain or cause to be
                                    maintained by an agent of the Transferor
                                    under the Transferor's control physical
                                    possession of all its books and records,
                                    (ii) maintain capitalization adequate for
                                    the conduct of its business, (iii) account
                                    for and manage all its liabilities
                                    separately from those of any other Person,
                                    including payment by it of all payroll,
                                    administrative expenses and taxes, if any,
                                    from its own assets, (iv) segregate and
                                    identify separately all of its assets from
                                    those of any other Person, (v) to the extent
                                    any such payments are made, pay its
                                    employees, officers and agents for services
                                    performed for the Transferor or (vi)
                                    maintain a separate office address with a
                                    separate telephone number from those of BVAC
                                    or any other affiliate thereof; or

                           (D)      Except as may be provided in this Agreement,
                                    or a similar agreement relating to other
                                    securitizations in which the Transferor has
                                    similar rights and/or obligations, commingle
                                    its funds with

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<PAGE>

                                    those of BVAC or any affiliate thereof or
                                    use its funds for other than the
                                    Transferor's uses.

         SECTION 11.02     Liability of Transferor; Indemnities. The Transferor
shall be liable in accordance herewith only to the extent of the obligations
specifically undertaken by the Transferor under this Agreement.

                  (i)      The Transferor shall indemnify, defend, and hold
                           harmless the Owner Trustee, the Indenture Trustee,
                           the Insurer their respective officers, directors,
                           employees and agents, the Trust and the Noteholders
                           from and against any taxes that may at any time be
                           asserted against such parties with respect to, and as
                           of the date of, the sale of the Receivables to the
                           Owner Trustee or the issuance and original sale of
                           the Certificates and the Notes, including any sales,
                           gross receipts, general corporation, tangible or
                           intangible personal property, privilege, or license
                           taxes (but, in the case of the Trust, not including
                           any taxes asserted with respect to ownership of the
                           Receivables or federal or other income taxes arising
                           out of distributions on the Certificates or the
                           Notes) and costs and expenses in defending against
                           the same.

                  (ii)     The Transferor shall indemnify, defend, and hold
                           harmless the Owner Trustee, its officers, directors,
                           employees and agents and the Trust from and against
                           any loss, liability, or expense incurred by reason of
                           (a) the Transferor's willful misfeasance, bad faith,
                           or negligence in the performance of its duties under
                           this Agreement, or by reason of reckless disregard of
                           its obligations and duties under this Agreement and
                           (b) the Transferor's violation of federal or State
                           securities laws in connection with the registration
                           of the sale of the Certificates.

         Indemnification under this Section 11.02 shall include, without
limitation, reasonable fees and expenses of counsel and expenses of litigation.
If the Transferor shall have made any indemnity payments to the Owner Trustee or
the Trust pursuant to this Section and the Owner Trustee or the Trust thereafter
shall collect any of such amounts from others, the Owner Trustee or the Trust,
as the case may be, shall repay such amounts to the Transferor, without
interest. This indemnification shall survive the termination of this Agreement
and the resignation or removal of the Owner Trustee or the Indenture Trustee.

         SECTION 11.03     Merger or Consolidation of, or Assumption of the
Obligations of Transferor. Any Person (a) into which the Transferor may be
merged or consolidated, (b) which may result from any merger or consolidation to
which the Transferor shall be a party, or (c) which may succeed to all or
substantially all of the properties and assets of the Transferor's business,
which Person in any of the foregoing cases executes an agreement of assumption
to perform every obligation of the Transferor under this Agreement, shall be the
successor to the Transferor hereunder without the execution or filing of any
document or any further act by any of the parties to this Agreement; provided,
however, that (i) immediately after giving effect to such transaction, no
representation or warranty made pursuant to Section 7.01 shall have been
breached and no Event of Servicer Default, and no event that, after notice or
lapse of time, or

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<PAGE>

both, would become an Event of Servicer Default shall have happened and be
continuing, (ii) the Transferor shall have delivered to the Owner Trustee an
Officers' Certificate and an Opinion of Counsel each stating that such
consolidation, merger, or succession and such agreement of assumption comply
with this Section 11.03 and that all conditions precedent, if any, provided for
in this Agreement relating to such transaction have been complied with and (iii)
the Transferor shall have delivered an Opinion of Counsel either (A) stating
that, in the opinion of such counsel, all financing statements and continuation
statements and amendments thereto have been executed and filed that are
necessary fully to preserve and protect the interest of the Owner Trustee and
the Indenture Trustee in the Receivables, and reciting the details of such
filings, or (B) stating that, in the opinion of such Counsel, no such action
shall be necessary to preserve and protect such interest. Notwithstanding the
forgoing, the Transferor shall not engage in any merger or consolidation with
any Person, or a disposition of all or substantially all of its assets without
providing advance written notice thereof to the Owner Trustee, the Indenture
Trustee and the Rating Agencies and without obtaining the prior written consent
of the Insurer, so long as the Insurer is the Controlling Party.

         SECTION 11.04     Limitation on Liability of Transferor and Others. The
Transferor and any director or officer or employee or agent of the Transferor
may rely in good faith on the advice of counsel or on any document of any kind,
prima facie properly executed and submitted by any Person respecting any matters
arising hereunder. The Transferor shall not be under any obligation to appear
in, prosecute, or defend any legal action that shall not be incidental to its
obligations under this Agreement, and that in its opinion may involve it in any
expense or liability.

                                  ARTICLE XII

              THE SERVICER; BACK-UP SERVICER; AND STANDBY SERVICER

         SECTION 12.01     Representations and Warranties

                  (a)      The Servicer. The Servicer makes the following
         representations on which the Trustee, the Owner Trustee and the
         Indenture Trustee rely in accepting the Receivables in trust and
         executing and authenticating the Certificates and executing and
         delivering the Indenture. The Servicer agrees that the representations
         shall also be for the benefit of the Secured Parties. The
         representations speak as of the execution and delivery of this
         Agreement and shall survive the sale of the Receivables to the Trust
         and the Owner Trustee and the pledge to the Secured Parties pursuant to
         the Indenture.

                  (i)      Organization and Good Standing. The Servicer is duly
                           organized validly existing as a corporation under the
                           laws of the State of Nevada, with power and authority
                           to own its properties and to conduct its business as
                           such properties shall be currently owned and such
                           business is presently conducted, and had at all
                           relevant times, and shall have, power, authority, and
                           legal right to acquire, own, sell, and service the
                           Receivables and to hold the Receivable Files as
                           custodian on behalf of the Owner Trustee.

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<PAGE>

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

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

                  (iv)     Binding Obligations. This Agreement constitutes a
                           legal, valid, and binding obligation of the Servicer
                           enforceable in accordance with its terms, except as
                           enforceability may be limited by bankruptcy,
                           insolvency, reorganization, or other similar laws
                           affecting the enforcement of creditors' rights in
                           general and by general principles of equity,
                           regardless of whether such enforceability shall be
                           considered in a proceeding in equity or at law.

                  (v)      No Violation. The consummation of the transactions
                           contemplated by this Agreement and the fulfillment of
                           the terms hereof do not conflict with, result in any
                           breach of any of the terms and provisions of, nor
                           constitute (with or without notice or lapse of time)
                           a default under, the charter or by-laws of the
                           Servicer, or any indenture, agreement, or other
                           instrument to which the Servicer is a party or by
                           which it shall be bound; nor result in the creation
                           or imposition of any Lien upon any of its properties
                           pursuant to the terms of any such indenture,
                           agreement, or other instrument (other than this
                           Agreement); nor violate any law or, to the best of
                           the Servicer's knowledge, any order, rule, or
                           regulation applicable to the Servicer of any court or
                           of any federal or State regulatory body,
                           administrative agency, or other governmental
                           instrumentality having jurisdiction over the Servicer
                           or its properties.

                  (vi)     No Proceedings. There are no proceedings or
                           investigations pending, or, to the Servicer's
                           knowledge, threatened, before any court, regulatory
                           body, administrative agency, or other governmental
                           instrumentality having jurisdiction over the Servicer
                           or its properties: (A) asserting the invalidity of
                           this Agreement, (B) seeking to prevent the
                           consummation of any of the transactions contemplated
                           by this Agreement, (C) seeking any determination or
                           ruling that might materially and adversely affect the
                           performance by the Servicer of its obligations under,
                           or the validity or enforceability of, this Agreement,
                           or (D) which might adversely affect the federal
                           income tax attributes of the Trust.

                  (b)      The Back-up Servicer makes the following
         representations on which the Trustee, the Owner Trustee and the
         Indenture Trustee rely in accepting the Receivables in trust and
         executing and authenticating the Certificates and executing and
         delivering the

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                                       40

<PAGE>

         Indenture. The Back-up Servicer agrees that the representations shall
         also be for the benefit of the Secured Parties. The representations
         speak as of the execution and delivery of this Agreement and shall
         survive the sale of the Receivables to the Trust and Owner Trustee and
         the pledge to the Secured Parties pursuant to the Indenture.

                  (i)      Organization and Good Standing. The Back-up Servicer
                           is duly organized and is validly existing as a
                           banking corporation in good standing under the laws
                           of the State of [__________], with power and
                           authority and legal right to own its properties and
                           to conduct its business as such properties are
                           currently owned and such business is presently
                           conducted, and has and had at all relevant times,
                           full power, authority, and legal right to acquire,
                           own, sell, and service the Receivables;

                  (ii)     Due Qualification. The Back-up Servicer is duly
                           qualified to do business as a foreign corporation in
                           good standing, and has obtained all necessary
                           licenses and approvals in all jurisdictions in which
                           the ownership or lease of property or the conduct of
                           its business (including the servicing of the
                           Receivables as required by this Agreement and the
                           performance of its other obligations under this
                           Agreement) requires such qualifications except where
                           such failure will not have a material adverse effect
                           on the Back-up Servicer, its business or its
                           properties, or the ability of the Back-up Servicer to
                           perform its obligations under this Agreement;

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

                  (iv)     Binding Obligations. This Agreement constitutes the
                           legal, valid, and binding obligation of the Back-up
                           Servicer enforceable in accordance with its terms,
                           subject to the effects of bankruptcy, insolvency,
                           reorganization, or other similar laws affecting the
                           enforcement of creditors' rights generally and to
                           general principles of equity;

                  (v)      No Violation. The execution, delivery and performance
                           by the Back-up Servicer of this Agreement, and the
                           consummation of the transactions contemplated by this
                           Agreement and the fulfillment of the terms hereof do
                           not conflict with, result in any breach of any of the
                           terms and provisions of, nor constitute (with or
                           without notice or lapse of time) a default under, the
                           charter documents of the Back-up Servicer.

                  (c)      The Standby Servicer makes the following
         representations on which the Trustee, the Owner Trustee and the
         Indenture Trustee rely in accepting the Receivables in trust and
         executing and authenticating the Certificates and executing and
         delivering the Indenture. The Standby Servicer agrees that the
         representations shall also be for the benefit of the Secured Parties.
         The representations speak as of the execution and delivery

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                                       41

<PAGE>

         of this Agreement and shall survive the sale of the Receivables to the
         Trust and Owner Trustee and the pledge to the Secured Parties pursuant
         to the Indenture.

                  (i)      Organization and Good Standing. The Standby Servicer
                           is duly organized and is validly existing as a
                           corporation in good standing under the laws of the
                           State of [__________], with power and authority and
                           legal right to own its properties and to conduct its
                           business as such properties are currently owned and
                           such business is presently conducted, and has and had
                           at all relevant times, full power, authority, and
                           legal right to acquire, own, sell, and service the
                           Receivables;

                  (ii)     Due Qualification. The Standby Servicer is duly
                           qualified to do business as a foreign corporation in
                           good standing, and has obtained all necessary
                           licenses and approvals in all jurisdictions in which
                           the ownership or lease of property or the conduct of
                           its business (including the servicing of the
                           Receivables as required by this Agreement and the
                           performance of its other obligations under this
                           Agreement) requires such qualifications except where
                           such failure will not have a material adverse effect
                           on the Standby Servicer, its business or its
                           properties, or the ability of the Standby Servicer to
                           perform its obligations under this Agreement;

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

                  (iv)     Binding Obligations. This Agreement constitutes the
                           legal, valid, and binding obligation of the Standby
                           Servicer enforceable in accordance with its terms,
                           subject to the effects of bankruptcy, insolvency,
                           reorganization, or other similar laws affecting the
                           enforcement of creditors' rights generally and to
                           general principles of equity;

                  (v)      No Violation. The execution, delivery and performance
                           by the Standby Servicer of this Agreement, and the
                           consummation of the transactions contemplated by this
                           Agreement and the fulfillment of the terms hereof do
                           not conflict with, result in any breach of any of the
                           terms and provisions of, nor constitute (with or
                           without notice or lapse of time) a default under, the
                           charter documents of the Standby Servicer;

                  (vi)     No Proceedings. There are no proceedings or
                           investigations pending, or, to the Standby Servicer's
                           best knowledge, threatened, before any court,
                           regulatory body, administrative agency, or other
                           governmental instrumentality having jurisdiction over
                           the Standby Servicer or its properties: A) asserting
                           the invalidity of this Agreement, B) seeking to
                           prevent the consummation of any of the transactions
                           contemplated by this Agreement, C) seeking any
                           determination or ruling that might materially and
                           adversely affect the performance by the Standby
                           Servicer of its

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<PAGE>

                           obligations under, or the validity or enforceability
                           of, this Agreement, which might adversely affect the
                           federal income tax attributes of the Trust;

         SECTION 12.02     Indemnities of Servicer, Back-up Servicer and Standby
Servicer.

                  (a)      The Servicer shall be liable in accordance herewith
         only to the extent of the obligations specifically undertaken by the
         Servicer under this Agreement and no implied duties or obligations
         shall be read into this Agreement against the Servicer.

                  (i)      The Servicer shall defend, indemnify, and hold
                           harmless the Owner Trustee, the Indenture Trustee,
                           the Insurer, the Standby Servicer, the Back-up
                           Servicer, and their officers, directors, employees
                           and agents, the Trust, the Certificateholders and the
                           Noteholders from and against any and all costs,
                           expenses, losses, damages, claims, and liabilities,
                           arising out of or resulting from the use, ownership,
                           or operation by the Servicer or any affiliate thereof
                           of a Financed Vehicle.

                  (ii)     The Servicer shall indemnify, defend and hold
                           harmless the Owner Trustee, the Indenture Trustee,
                           the Insurer, the Standby Servicer, the Back-up
                           Servicer, their officers, directors, employees and
                           agents and the Trust from and against any taxes that
                           may at any time be asserted against such parties with
                           respect to the transactions contemplated herein,
                           including, without limitation, any sales, gross
                           receipts, general corporation, tangible or intangible
                           personal property, privilege, or license taxes (but,
                           in the case of the Trust, not including any taxes
                           asserted with respect to, and as of the date of, the
                           sale of the Receivables to the Trust or the issuance
                           and original sale of the Certificates, the Notes, or
                           asserted with respect to ownership of the
                           Receivables, or federal or other income taxes arising
                           out of distributions on the Certificates or the
                           Notes) and costs and expenses in defending against
                           the same.

                  (iii)    The Servicer shall indemnify, defend, and hold
                           harmless the Owner Trustee, the Indenture Trustee,
                           the Insurer, the Standby Servicer, the Back-up
                           Servicer, their officers, directors, employees and
                           agents, and the Trust, the Certificateholders 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 such parties through, the negligence, willful
                           misfeasance, or bad faith of the Servicer in the
                           performance of its duties under this Agreement, or by
                           reason of reckless disregard of its obligations and
                           duties under this Agreement. This indemnity shall
                           survive the termination of this Agreement or the
                           Trust and the resignation or removal of the Owner
                           Trustee.

                  (iv)     The Servicer shall indemnify, defend, and hold
                           harmless the Owner Trustee, the Indenture Trustee,
                           the Insurer, the Standby Servicer, their respective
                           officers, directors, employees and agents and the
                           Trust from

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                                       43

<PAGE>

                           and against all costs, expenses, losses, claims,
                           damages, and liabilities arising out of or incurred
                           in connection with the acceptance or performance of
                           the trusts and duties herein contained, except to the
                           extent that such cost, expense, loss, claim, damage
                           or liability: (a) shall be due to the willful
                           misfeasance, bad faith, or negligence of such
                           indemnified party or the Indenture Trustee; (b)
                           relates to any tax other than the taxes with respect
                           to which either the Transferor or Servicer shall be
                           required to indemnify the Owner Trustee or the
                           Indenture Trustee; (c) shall arise from the breach of
                           any of representations or warranties of such
                           indemnified party; (d) shall be one as to which the
                           Transferor is required to indemnify the Owner Trustee
                           or the Indenture Trustee; or (e) shall arise out of
                           or be incurred in connection with the acceptance or
                           performance by the Owner Trustee of the duties of
                           successor Servicer.

                  Notwithstanding the foregoing, clauses (ii) and (iv) shall not
         apply to the Standby Servicer in the event the Standby Servicer becomes
         the successor Servicer.

                  Indemnification by each of the Servicer, the Standby Servicer
         or the Back-up Servicer (or any other successor Servicer), as Servicer,
         shall be made only with respect to the period that it acts as Servicer
         and its acts and omissions while acting as such. Indemnification under
         this Section by the Servicer, with respect to the period such Person
         was (or was deemed to be) the Servicer, shall survive the termination
         of such Person as Servicer or a resignation by such Person as Servicer
         as well as the termination of this Agreement and shall include
         reasonable fees and expenses of counsel and expenses of litigation. If
         the Servicer shall have made any indemnity payments pursuant to this
         Section and the recipient thereafter collects any of such amounts from
         others, the recipient shall promptly repay such amounts to the
         Servicer, without interest.

                  (b)      The Back-up Servicer and the Standby Servicer shall
         each be liable in accordance herewith only to the extent of the
         obligations specifically undertaken by the Back-up Servicer in its
         capacity as Back-up Servicer under this Agreement and the Standby
         Servicer in its capacity as Standby Servicer under this Agreement, and
         no implied duties or obligations shall be read into this Agreement
         against the Back-up Servicer or the Standby Servicer. The Back-up
         Servicer may fulfill its obligations hereunder as Back-up Servicer
         through its agents, nominees and custodians and shall not be liable for
         the acts or omissions of such agents, nominees and custodians to the
         extent they are appointed with due care by the Back-up Servicer.
         Neither the Back-up Servicer nor its employees, directors, agents or
         officers shall be liable for any action taken in good faith pursuant to
         this Agreement or for errors of judgment not involving willful
         misconduct or negligence. The Standby Servicer shall indemnify, defend,
         and hold harmless the Trust, the Indenture Trustee, the Insurer, the
         Servicer 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 the Trust, the Indenture Trustee, the Servicer, the
         Insurer or the Noteholders through the negligence, willful misconduct
         or bad faith of the Standby Servicer, in the performance of its duties
         as Standby Servicer under this Agreement, or by reason of reckless
         disregard of the Standby Servicer's obligations and duties as Standby

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<PAGE>

         Servicer under this Agreement. In the event that the Standby Servicer
         becomes the successor Servicer, the Standby Servicer in its capacity as
         successor Servicer, shall be liable in accordance with, and to the
         extent set forth in, Section 12.02(a).

                  (c)      Indemnification under this Section 12.02 shall
         include reasonable fees and expenses of counsel and expenses of
         litigation. If the Servicer shall have made any indemnity payments
         pursuant to this Section and the recipient thereafter collects any of
         such amounts from others, the recipient shall promptly repay such
         amounts to the Servicer, without interest. This indemnification shall
         survive the termination of this Agreement and the removal of the
         Servicer.

         SECTION 12.03     Merger or Consolidation of, or Assumption of the
Obligations of the Servicer, Back-up Servicer and Standby Servicer.

                  (a)      Any Person (i) into which the Servicer may be merged
         or consolidated, (ii) which may result from any merger or consolidation
         to which the Servicer shall be a party, or (iii) which may succeed to
         all or substantially all of the properties and assets of the Servicer's
         indirect automobile financing and receivables servicing business, which
         Person in any of the foregoing cases executes an agreement of
         assumption to perform every obligation of the Servicer hereunder, shall
         be the successor to the Servicer under this Agreement without further
         act on the part of any of the parties to this Agreement; provided,
         however, that (A) immediately after giving effect to such transaction,
         no Event of Servicer Default, and no event which, after notice or lapse
         of time, or both, would become an Event of Servicer Default shall have
         happened and be continuing, (B) the Servicer shall have delivered to
         the Owner Trustee an Officers' Certificate and an Opinion of Counsel
         each stating that such consolidation, merger or succession and such
         agreement of assumption comply with this Section 12.03 and that all
         conditions precedent provided for in this Agreement relating to such
         transaction have been complied with and (C) the Servicer shall have
         delivered an Opinion of Counsel either (1) stating that, in the opinion
         of such counsel, all financing statements and continuation statements
         and amendments thereto have been executed and filed that are necessary
         fully to preserve and protect the interest of the Owner Trustee and the
         Secured Parties in the Receivables, and reciting the details of such
         filings, or (2) stating that, in the opinion of such Counsel, no such
         action shall be necessary to preserve and protect such interest.
         Notwithstanding the forgoing, the Servicer shall not engage in any
         merger or consolidation in which it is not the surviving corporation
         without the prior written consent of the Insurer, not to be
         unreasonably withheld.

                  (b)      Any Person (i) into which the Back-up Servicer may be
         merged or consolidated, (ii) which may result from any merger or
         consolidation to which the Back-up Servicer shall be a party, (iii)
         which may succeed to the properties and assets of the Back-up Servicer
         substantially as a whole or (iv) succeeding to the business of the
         Back-up Servicer, shall execute an agreement of assumption to perform
         every obligation of the Back-up Servicer hereunder, and whether or not
         such assumption agreement is executed, shall be the successor to the
         Back-up Servicer under this Agreement without further act on the part
         of any of the parties to this Agreement; provided, however, that
         nothing herein shall be deemed to release the Back-up Servicer from any
         obligation. In

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<PAGE>

         connection with any transaction described above, the Back-up Servicer
         must comply with the provisions of this Section 12.03 as if it were
         then acting as Servicer.

                  (c)      Any Person (i) into which the Standby Servicer may be
         merged or consolidated, (ii) which may result from any merger or
         consolidation to which the Standby Servicer shall be a party, (ii)
         which may succeed to the properties and assets of the Standby Servicer
         substantially as a whole or (iv) succeeding to the business of the
         Standby Servicer, shall execute an agreement of assumption to perform
         every obligation of the Standby Servicer hereunder, and whether or not
         such assumption agreement is executed, shall be the successor to the
         Standby Servicer under this Agreement without further act on the part
         of any of the parties to this Agreement; provided, however, that
         nothing herein shall be deemed to release the Standby Servicer from any
         obligation. In connection with any transaction described above, the
         Standby Servicer must comply with the provisions of this Section 12.03
         as if it were then acting as Servicer.

         SECTION 12.04     Limitation on Liability of Servicer and Others.
Neither the Servicer nor any of the directors or officers or employees or agents
of the Servicer shall be under any liability to the Trust, the Indenture
Trustee, the Certificateholders or the Noteholders, except as provided under
this Agreement, for any action taken or for refraining from the taking of any
action pursuant to this Agreement; provided, however, that this provision shall
not protect the Servicer or any such person against any liability that would
otherwise be imposed by reason of willful misfeasance, bad faith, or negligence
in the performance of duties or by reason of reckless disregard of obligations
and duties under this Agreement. The Servicer and any director or officer or
employee or agent of the Servicer may rely in good faith on any document of any
kind prima facie properly executed and submitted by any Person respecting any
matters arising under this Agreement.

         Except as provided in this Agreement, the Servicer shall not be under
any obligation to appear in, prosecute, or defend any legal action that shall
not be incidental to its duties to service the Receivables in accordance with
this Agreement (collection actions with respect to Charged-Off Receivables are
understood to be incidental to the Servicer's duties to service the
Receivables), and that in its opinion may involve it in any expense or
liability.

         SECTION 12.05     Servicer, Back-up Servicer and Standby Servicer Not
to Resign. Subject to the provisions of Sections 8.02(e) and 13.01, as
applicable, none of the Servicer, Back-up Servicer, or the Standby Servicer
shall resign from the obligations and duties imposed on it by this Agreement as
Servicer, Back-up Servicer, or Standby Servicer, respectively, except upon
determination that the performance of its duties shall no longer be permissible
under applicable law or otherwise with the consent of the Owner Trustee, the
Indenture Trustee and the Insurer. Any determination described above permitting
the resignation of the Servicer, Back-up Servicer or Standby Servicer shall be
evidenced by an Opinion of Counsel to such effect delivered to the Owner
Trustee. No resignation of the Servicer shall become effective, so long as no
Insurer Default shall have occurred and be continuing, until the Back-up
Servicer, the Standby Servicer or an entity acceptable to the Insurer shall have
assumed the responsibilities and obligations of the Servicer. No resignation of
the Servicer, Back-up Servicer, or the Standby Servicer shall relieve the
Servicer, Back-up Servicer, or the Standby Servicer, as the case may be, of any
liability to which it has previously become subject under this Agreement.

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<PAGE>

         SECTION 12.06     Delegation of Duties. Except as provided in Section
12.03 hereof, it is understood and agreed by the parties hereto that the
Servicer or the Transferor may at any time delegate any duties including duties
as custodian to any Person willing to accept such delegation and to perform such
duties (including any affiliate of the Servicer) in accordance with the
customary procedures of the Servicer. In connection with such delegation, the
Servicer or the Transferor may assign rights to the delegee or direct the
payment to the delegee of benefits or amounts otherwise inuring to the benefit
of, or payable to, the Transferor or the Servicer hereunder. Any such delegation
shall not relieve the Servicer or the Transferor of their respective liability
and responsibility with respect to such duties, and shall not constitute a
resignation within Section 12.05 hereof. The Servicer shall give written notice
to the Rating Agencies, the Owner Trustee, the Indenture Trustee and the Insurer
of any such delegation.

                                  ARTICLE XIII

                                SERVICER DEFAULT

         SECTION 13.01     Events of Servicer Default. While the Servicer, the
Back-up Servicer, the Standby Servicer or any successor Servicer is acting as
the Servicer hereunder, any one of the following events shall constitute an
"Event of Servicer Default":

                  (i)      Any failure by the Servicer or BVAC to deposit or
                           deliver to any Trust Account (or to the Indenture
                           Trustee for distribution to the Noteholders) any
                           proceeds or payment required to be so delivered under
                           the terms of the Indenture, this Agreement or the
                           Purchase Agreement or any failure by the Servicer to
                           deliver any Servicer's Certificate pursuant to
                           Section 8.12 that, in either case, shall continue
                           unremedied for a period of five Business Days (A)
                           after written notice from either the Owner Trustee,
                           the Indenture Trustee or the Insurer (so long as the
                           Insurer is not in default of its obligations under
                           the Policy) or by the holders of Notes evidencing not
                           less than 25% of the aggregate outstanding balance of
                           the Notes is received by the Servicer as specified in
                           this Agreement or (B) after discovery by an officer
                           of the Servicer; or

                  (ii)     Failure on the part of the Servicer, the Transferor
                           or BVAC duly to observe or to perform in any material
                           respect any other covenants or agreements of the
                           Servicer, the Transferor or BVAC, as the case may be,
                           set forth in this Agreement or the Purchase
                           Agreement, which failure shall (a) materially and
                           adversely affect the rights of Certificateholders or
                           the Secured Parties and (b) continue unremedied for a
                           period of 60 days after the date on which written
                           notice of such failure, requiring the same to be
                           remedied, shall have been given to the Servicer, BVAC
                           or the Transferor, as the case may be, by the Owner
                           Trustee, the Indenture Trustee or the Insurer (so
                           long as the Insurer is not in default of its
                           obligations under the Policy) or by the holders of
                           Notes evidencing not less than 25% of the aggregate
                           outstanding balance of the Notes; or

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

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<PAGE>

then, and in each and every case, so long as an Event of Servicer Default shall
not have been remedied, the Insurer (so long as the Insurer is not in default of
its obligations under the Policy), or the Indenture Trustee (upon direction to
do so by the holders of Notes evidencing not less than 25% of the outstanding
principal balance of the Notes if the Insurer is in default under the Policy),
by notice then given in writing to the Servicer may, terminate all of the rights
and obligations of the Servicer under this Agreement. In addition, if a Trigger
Event (as defined in the Insurance Agreement) shall have occurred, the Insurer
may (A) require that the Indenture Trustee deliver a notice of termination to
the Servicer and appoint a successor Servicer designated by the Insurer in such
notice pursuant to Section 13.02; (B) require that the Indenture Trustee amend
certificates of title relating to the Financed Vehicles and take other actions
to identify the Indenture Trustee (on behalf of the Secured Parties) as the new
secured party on such certificates of title; (C) as provided in the Insurance
Agreement, require that the Servicer or successor Servicer or the Indenture
Trustee instruct Obligors in respect of the Receivables to remit payment on the
Receivable directly to the Indenture Trustee or a separate account established
exclusively for the Trust; and (D) as provided in the Insurance Agreement,
compel transfer by the Servicer of all Receivables Files and, if applicable,
certain rights in respect of servicing systems assets to the Insurer or to the
successor Servicer designated by the Insurer. On or after the receipt by the
Servicer of such written notice (unless otherwise directed by the Insurer and
subject to Section 13.02(a)), all authority and power of the Servicer as the
Servicer under this Agreement, whether with respect to the Securities or the
Receivables or otherwise, shall, without further action, pass to and be vested
in the Standby Servicer or any such successor Servicer as may be appointed under
Section 13.02; and, without limitation, the Standby Servicer any such successor
Servicer and the Indenture Trustee are hereby authorized and empowered to
execute and deliver, on behalf of the predecessor Servicer, as attorney-in-fact
or otherwise, any and all documents and other instruments, and to do or
accomplish all other acts or things necessary or appropriate to effect the
purposes of such notice of termination, whether to complete the transfer and
endorsement of the Receivables and related documents, or otherwise. The
predecessor Servicer shall cooperate with the successor Servicer and the Owner
Trustee in effecting the termination of the responsibilities and rights of the
predecessor Servicer under this Agreement, including the transfer to the
successor Servicer of electronic records related to the Receivables in such form
as the successor Servicer may reasonably request and the transfer to the
successor Servicer for administration by it of all cash amounts that shall at
the time be held by the predecessor Servicer for deposit, or shall thereafter be
received with respect to a Receivable. All Transition Costs shall be paid by the
predecessor Servicer upon presentation of reasonable documentation of such costs
and expenses and, if not so paid, shall be reimbursable to the successor
Servicer, to the extent of Available Funds on each Payment Date, pursuant to the
priorities set forth in Section 8.05(a) of the Indenture; provided, that such
payment shall not relieve the predecessor Servicer from the responsibility for
making such payment and the Issuer shall be subrogated to the rights of the
successor Servicer with respect to such Transition Costs and shall have a direct
right to institute proceedings against the Servicer for such payment. The
predecessor Servicer shall grant the Transferor, the Indenture Trustee, the
Standby Servicer, the Back-up Servicer and the Insurer reasonable access to the
predecessor Servicer's premises, computer files, personnel, records and
equipment at the predecessor Servicer's expense.

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<PAGE>

         SECTION 13.02     Appointment of Successor.

                  (a)      Upon the Servicer's receipt of notice of termination
         pursuant to Section 13.01 or the Servicer's resignation in accordance
         with the terms of this Agreement, the predecessor Servicer shall
         continue to perform its functions as Servicer under this Agreement, in
         the case of termination, only until the date specified in such
         termination notice or, if no such date is specified in a notice of
         termination, until receipt of such notice and, in the case of
         resignation, until the later of (x) the date 45 days from the delivery
         to the Owner Trustee and the Indenture Trustee of written notice of
         such resignation (or written confirmation of such notice) in accordance
         with the terms of this Agreement and (y) the date upon which the
         predecessor Servicer shall become unable to act as Servicer, as
         specified in the notice of resignation and accompanying Opinion of
         Counsel. In the event of the Servicer's resignation or termination
         hereunder, and unless the Controlling Party directs otherwise, the
         Standby Servicer shall automatically be the successor 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 Standby Servicer as Servicer
         by the terms and provisions hereof; provided, however, that neither the
         Standby Servicer, the Back-up Servicer nor any other successor Servicer
         shall be liable for any actions of the Servicer or any other
         predecessor Servicer prior to such succession or for any breach by the
         Servicer or any other predecessor Servicer of any of its
         representations, warranties or covenants contained in this Agreement or
         in any related document or agreement.

                  (b)      Upon appointment, the successor Servicer shall be the
         successor in all respects to the predecessor Servicer and shall be
         subject to all the responsibilities, duties, and liabilities arising
         thereafter relating thereto placed on the predecessor Servicer, and
         shall be entitled to the Servicing Fee and all of the rights granted to
         the predecessor Servicer, by the terms and provisions of this
         Agreement. The predecessor Servicer shall be entitled to be reimbursed
         for Outstanding Advances.

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

         SECTION 13.03     Notice of Events of Servicer Default. Upon any notice
of an Event of Servicer Default or upon any termination of, or appointment of a
successor to, the Servicer pursuant to this Article XIII, the Owner Trustee
shall give prompt written notice thereof to Certificateholders at their
respective addresses appearing in the Certificate Register to each of the Rating
Agencies rating the Notes, to the Insurer and to the Indenture Trustee for
further notice thereof to the Noteholders.

         SECTION 13.04     Waiver of Past Defaults. The Insurer (so long as the
Insurer is the Controlling Party) or the Indenture Trustee (if an Insurer
Default has occurred and is continuing) upon direction from holders of Notes
evidencing not less than 51% of the outstanding principal

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<PAGE>

balance of the Notes may waive any default by the Servicer in the performance of
its obligations hereunder and its consequences, except a default in making any
required deposits to or payments from the Collection Account in accordance with
this Agreement; provided, that no waiver of any default or provision of this
Agreement shall become effective without the consent of the Insurer (so long as
the Insurer is the Controlling Party). Upon any such waiver of a past default,
such default shall cease to exist, and any Event of Servicer Default arising
therefrom shall be deemed to have been remedied for every purpose of this
Agreement. No such waiver shall extend to any subsequent or other default or
impair any right consequent thereon.

                                  ARTICLE XIV

                                THE OWNER TRUSTEE

         SECTION 14.01     Duties of Owner Trustee. The Owner Trustee, both
prior to and after the occurrence of an Event of Servicer Default, shall
undertake to perform such duties as are specifically set forth in this
Agreement. If an Event of Servicer Default shall have occurred and shall not
have been cured and, in the case of an Event of Servicer Default described in
clause (i) of Section 13.01, the Owner Trustee has received notice of such Event
of Servicer Default, the Owner Trustee shall exercise such of the rights and
powers vested in it by this Agreement, and shall use the same degree of care and
skill in their exercise, as a prudent person would exercise or use under the
circumstances in the conduct of his own affairs.

         It shall be the duty of the Owner Trustee to discharge (or cause to be
discharged) all its responsibilities pursuant to the terms of this Agreement and
the other documents to which the Trust is a party and to administer the Trust in
the interest of the Certificateholders, subject to and in accordance with the
provisions of this Agreement and the other documents to which the Trust is a
party. Without limiting the foregoing, the Owner Trustee shall on behalf of the
Trust file and prove any claim or claims that may exist on behalf of the Trust
against the Transferor in connection with any claims paying procedure as part of
an insolvency or a receivership proceeding involving the Transferor.
Notwithstanding the foregoing, the Owner Trustee shall be deemed to have
discharged its duties and responsibilities hereunder and under the other
documents to which the Trust is a party to the extent the Administrator has
agreed in the Administration Agreement to perform any act or to discharge any
duty of the Owner Trustee hereunder or under any other document to which the
Trust is a party, and the Owner Trustee shall not be held liable for the default
or failure of the Administrator to carry out its obligations under the
Administration Agreement. Except as expressly provided in the documents to which
the Trust is a party, the Owner Trustee shall have no obligation to administer,
service or collect the Receivables or to maintain, monitor or otherwise
supervise the administration, servicing or collection of the Receivables.

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

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<PAGE>

         No provision of this Agreement shall be construed to relieve the Owner
Trustee from liability for its own negligent action, its own negligent failure
to act, or its own bad faith; provided, however, that:

                  (i)      Prior to the occurrence of an Event of Servicer
                           Default, and after the curing of all such Events of
                           Servicer Default that may have occurred, the duties
                           and obligations of the Owner Trustee shall be
                           determined solely by the express provisions of this
                           Agreement, the Owner Trustee shall not be liable
                           except for the performance of such duties and
                           obligations as shall be specifically set forth in
                           this Agreement, no implied covenants or obligations
                           shall be read into this Agreement against the Owner
                           Trustee and, in the absence of bad faith on the part
                           of the Owner Trustee, or manifest error, the Owner
                           Trustee may conclusively rely on the truth of the
                           statements and the correctness of the opinions
                           expressed in any certificates or opinions furnished
                           to the Owner Trustee and conforming to the
                           requirements of this Agreement;

                  (ii)     The Owner Trustee shall not be liable for an error of
                           judgment made in good faith by a Responsible Officer,
                           unless it shall be proved that the Owner Trustee
                           shall have been negligent in ascertaining the
                           pertinent facts;

                  (iii)    The Owner Trustee shall not be liable with respect to
                           any action taken, suffered, or omitted to be taken in
                           good faith in accordance with this Agreement or at
                           the direction of the Certificates relating to the
                           time, method, and place of conducting any proceeding
                           for any remedy available to the Owner Trustee, or
                           exercising any trust or power conferred upon the
                           Owner Trustee, under this Agreement;

                  (iv)     The Owner Trustee shall not be charged with knowledge
                           of any failure by the Servicer to comply with the
                           obligations of the Servicer referred to in clauses
                           (i) or (ii) of Section 13.01, or of any failure by
                           the Transferor to comply with the obligations of the
                           Transferor referred to in clause (ii) of Section
                           13.01, unless a Responsible Officer of the Owner
                           Trustee receives written notice of such failure (it
                           being understood that knowledge of the Servicer or
                           the Servicer as custodian, in its capacity as agent
                           for the Owner Trustee, is not attributable to the
                           Owner Trustee) from the Servicer or the Transferor,
                           as the case may be; and

                  (v)      Without limiting the generality of this Section or
                           Section 14.04, the Owner Trustee shall have no duty
                           (A) to see to any recording, filing, or depositing of
                           this Agreement or any agreement referred to therein
                           or any financing statement evidencing a security
                           interest in the Receivables or the Financed Vehicles,
                           or to see to the maintenance of any such recording or
                           filing or depositing or to any rerecording, refiling
                           or redepositing of any thereof, (B) to see to any
                           insurance of the Financed Vehicles or Obligors or to
                           effect or maintain any such insurance, (C) to see to
                           the payment or

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<PAGE>

                           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, (D) to confirm or
                           verify the contents of any reports or certificates of
                           the Servicer delivered to the Owner Trustee pursuant
                           to this Agreement believed by the Owner Trustee to be
                           genuine and to have been signed or presented by the
                           proper party or parties, or (E) to inspect the
                           Financed Vehicles at any time or ascertain or inquire
                           as to the performance or observance of any of the
                           Transferor's or the Servicer's representations,
                           warranties or covenants or the Servicer's duties and
                           obligations as Servicer and as custodian of the
                           Receivable Files under this Agreement.

         The Owner Trustee shall not be required to expend or risk its own funds
or otherwise incur financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if there shall be
reasonable ground for believing that the repayment of such funds or adequate
indemnity against such risk or liability shall not be reasonably assured to it,
and none of the provisions contained in this Agreement shall in any event
require the Owner Trustee to perform, or be responsible for the manner of
performance of, any of the obligations of the Servicer under this Agreement
except during such time, if any, as the Owner Trustee shall be the successor to,
and be vested with the rights, duties, powers, and privileges of, the Servicer
in accordance with the terms of this Agreement. Except for actions expressly
authorized by this Agreement, the Owner Trustee shall take no action reasonably
likely to impair the security interests created or existing under any Receivable
or to impair the value of any Receivable.

         SECTION 14.02     Owner Trustee's Certificate. On or as soon as
practicable after each Payment Date on which Receivables shall be (i) assigned
to BVAC pursuant to Section 7.02 or deemed to be assigned to the Transferor as a
result of the application of Available Funds in respect of Charged-Off
Receivables pursuant to Sections 9.04 or (ii) assigned to the Servicer pursuant
to Section 8.10 or to the Servicer pursuant to Section 15.02, the Owner Trustee
shall, at the written request of the Servicer, execute a Owner Trustee's
Certificate, substantially in the form of, in the case of an assignment to BVAC,
Exhibit 1, or, in the case of an assignment to the Servicer, Exhibit 2, based on
the information contained in the Servicer's Certificate for the related
Collection Period, amounts deposited to the Collection Account, and notices
received pursuant to this Agreement, identifying the Receivables repurchased or
deemed to be repurchased by BVAC pursuant to Section 7.02 or 8.08 or purchased
by the Servicer pursuant to Section 8.10 or the Servicer pursuant to Section
15.02 during such Collection Period, and shall deliver such Owner Trustee's
Certificate, accompanied by a copy of the Servicer's Certificate for such
Collection Period to BVAC or the Servicer, as the case may be. The Owner
Trustee's Certificate shall be an assignment pursuant to Section 14.03.

         SECTION 14.03     Owner Trustee's Assignment of Purchased Receivables.
With respect to each Receivable repurchased by BVAC pursuant to Section 7.02, or
deemed to be so repurchased pursuant to Section 8.08, purchased by the Servicer
pursuant to Section 8.10 or the Servicer pursuant to Section 15.02, the Owner
Trustee shall assign, as of the last day of the Collection Period during which
such Receivable became a Charged-Off Receivable or became subject to repurchase
by BVAC or purchase by the Servicer, without recourse, representation, or
warranty, to BVAC or the Servicer (as the case may be) all the Owner Trustee's
right, title, and

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<PAGE>

interest in and to such Receivables, and all security and documents relating
thereto, such assignment being an assignment outright and not for security. If
in any enforcement suit or legal proceeding it shall be held that the Servicer
may not enforce a Receivable on the ground that it shall not be a real party in
interest or a holder entitled to enforce the Receivable, the Owner Trustee
shall, at the Servicer's expense, take such steps as the Owner Trustee deems
necessary to enforce the Receivable, including bringing suit in its name and/or
the name of the Indenture Trustee.

         Section 14.04     Certain Matters Affecting the Owner Trustee. Except
as otherwise provided in Section 14.01:

                  (i)      The Owner Trustee may rely and shall be protected in
                           acting or refraining from acting upon any resolution,
                           Officers' Certificate, Servicer's Certificate,
                           certificate of auditors, or any other certificate,
                           statement, instrument, opinion, report, notice,
                           request, consent, order, appraisal, bond, or other
                           paper or document believed by it to be genuine and to
                           have been signed or presented by the proper party or
                           parties.

                  (ii)     The Owner Trustee may consult with counsel and any
                           written advice or Opinion of Counsel shall be full
                           and complete authorization and protection in respect
                           of any action taken or suffered or omitted by it
                           under this Agreement in good faith and in accordance
                           with such written advice or Opinion of Counsel.

                  (iii)    The Owner Trustee shall be under no obligation to
                           exercise any of the rights or powers vested in it by
                           this Agreement, or to institute, conduct, or defend
                           any litigation under this Agreement or in relation to
                           this Agreement, at the request, order, or direction
                           of any of the Certificateholders pursuant to the
                           provisions of this Agreement, unless such
                           Certificateholders shall have offered to the Owner
                           Trustee reasonable security or indemnity reasonably
                           satisfactory to the Owner Trustee against the costs,
                           expenses, and liabilities that may be incurred
                           therein or thereby. Nothing contained in this
                           Agreement, however, shall relieve the Owner Trustee
                           of the obligations, upon the occurrence of an Event
                           of Servicer Default (that shall not have been cured),
                           to exercise such of the rights and powers vested in
                           it by this Agreement, and to use the same degree of
                           care and skill in their exercise as a prudent man
                           would exercise or use under the circumstances in the
                           conduct of his own affairs.

                  (iv)     The Owner Trustee shall not be liable for any action
                           taken, suffered, or omitted by it in good faith and
                           believed by it to be authorized or within the
                           discretion or rights or powers conferred upon it by
                           this Agreement.

                  (v)      Prior to the occurrence of an Event of Servicer
                           Default and after the curing of all Events of
                           Servicer Default that may have occurred, the Owner
                           Trustee shall not be bound to make any investigation
                           into the facts of matters stated in any resolution,
                           certificate, statement, instrument, opinion,

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<PAGE>

                           report, notice, request, consent, order, approval,
                           bond, or other paper or document, unless requested in
                           writing so to do by the Indenture Trustee or holders
                           of Notes evidencing not less than 25% of the
                           outstanding principal balance of the Notes; provided,
                           however, that if the payment within a reasonable time
                           to the Owner Trustee of the costs, expenses, or
                           liabilities likely to be incurred by it in the making
                           of such investigation shall be, in the opinion of the
                           Owner Trustee, not reasonably assured to the Owner
                           Trustee by the security afforded to it by the terms
                           of this Agreement, the Owner 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 Servicer or, if paid by the Owner
                           Trustee, shall be reimbursed by the Servicer upon
                           demand. Nothing in this clause (v) shall affect the
                           obligation of the Servicer to observe any applicable
                           law prohibiting disclosure of information regarding
                           the Obligors.

                  (vi)     The Owner Trustee may execute any of the trusts or
                           powers hereunder or perform any duties under this
                           Agreement either directly or by or through agents or
                           attorneys or a custodian. The Owner Trustee shall not
                           be responsible for any misconduct or negligence
                           solely attributable to the acts or omissions of the
                           Servicer in its capacity as Servicer or custodian or
                           the Administrator.

                  (vii)    The Owner Trustee shall have no duty of independent
                           inquiry, except as may be required by Section 14.01,
                           and the Owner Trustee may rely upon the
                           representations and warranties and covenants of the
                           Transferor and the Servicer contained in this
                           Agreement with respect to the Receivables and the
                           Receivable Files.

         SECTION 14.05     Owner Trustee Not Liable for Certificates or
Receivables. The recitals contained herein and in the Certificates (other than
the certificate of authentication on the Certificates) shall be taken as the
statements of the Transferor or the Servicer, as the case may be, and the Owner
Trustee assumes no responsibility for the correctness thereof. The Owner Trustee
shall make no representations as to the validity or sufficiency of this
Agreement or of the Certificates (other than the certificate of authentication
on the Certificates), or of any Receivable or related document. The Owner
Trustee shall at no time have any responsibility or liability for or with
respect to the legality, validity, and enforceability of any security interest
in any Financed Vehicle or any Receivable, or the perfection and priority of
such a security interest or the maintenance of any such perfection and priority,
or for or with respect to the efficacy of the Trust or its ability to generate
the payments to be distributed to the Certificateholders or the Noteholders
under this Agreement or the Indenture, including, without limitation: the
existence, condition, location, and ownership of any Financed Vehicle; the
existence and enforceability of any physical damage insurance, lender's single
interest insurance, or credit life or disability and hospitalization insurance
with respect to any Receivable; the existence and contents of any Receivable or
any computer or other record thereof; the validity of the assignment of any
Receivable to the Trust or of any intervening assignment; the completeness of
any Receivable; the performance or enforcement of any Receivable; the compliance
by the Transferor or the

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<PAGE>

Servicer with any warranty or representation made under this Agreement or in any
related document and the accuracy of any such warranty or representation prior
to the Owner Trustee's receipt of notice or other discovery of any noncompliance
therewith or any breach thereof; any investment of monies by the Servicer or any
loss resulting therefrom (it being understood that the Owner Trustee shall
remain responsible for any Trust property that it may hold); the acts or
omissions of the Transferor, the Servicer, or any Obligor; an action of the
Servicer taken in the name of the Owner Trustee; or any action by the Owner
Trustee taken at the instruction of the Servicer; provided, however, that the
foregoing shall not relieve the Owner Trustee of its obligation to perform its
duties under this Agreement. Except with respect to a claim based on the failure
of the Owner Trustee to perform its duties under this Agreement or based on the
Owner Trustee's negligence or willful misconduct, no recourse shall be had for
any claim based on any provision of this Agreement, the Certificateholders or
the Noteholders, or any Receivable or assignment thereof against the Owner
Trustee in its individual capacity, the Owner Trustee shall not have any
personal obligation, liability, or duty whatsoever to any Certificateholders or
the Noteholders or any other Person with respect to any such claim, and any such
claim shall be asserted solely against the Trust or any indemnitor who shall
furnish indemnity as provided in this Agreement. The Owner Trustee shall not be
accountable for the use or application by the Transferor of any of the
Certificates or Notes or of the proceeds thereof, or for the use or application
of any funds paid to the Transferor or the Servicer in respect of the
Receivables.

         SECTION 14.06     Owner Trustee May Own Notes. The Owner Trustee in its
individual or any other capacity may become the owner or pledgee of Notes with
the same rights as it would have if it were not Trustee.

         SECTION 14.07     Owner Trustee's and Indenture Trustee's Fees and
Expenses.

                  (a)      The Servicer shall pay to the Owner Trustee, and the
         Owner Trustee shall be entitled to, reasonable compensation (which
         shall not be limited by any provision of law in regard to the
         compensation of a trustee of an express trust) for all services
         rendered by it in the execution of the trusts created by this Agreement
         and in the exercise and performance of any of the Owner Trustee's
         powers and duties under this Agreement and the Indenture, and the
         Servicer shall pay or reimburse the Owner Trustee upon its request for
         all reasonable expenses, disbursements, and advances (including the
         reasonable compensation and the expenses and disbursements of its
         counsel and of all persons not regularly in its employ) incurred or
         made by the Owner Trustee in accordance with any provisions of this
         Agreement and the Indenture, except any such expense, disbursement, or
         advance as may be attributable to its willful misfeasance, negligence,
         or bad faith, and the Servicer shall indemnify the Owner Trustee
         (which, for purposes of this section, shall include its directors,
         officers, employees, and agents) for and hold it harmless against any
         loss, liability, or expense incurred without willful misfeasance,
         negligence, or bad faith on its part, arising out of or in connection
         with the acceptance or administration of the Trust, including the costs
         and expenses of defending itself against any claim or liability in
         connection with the exercise or performance of any of its powers or
         duties under this Agreement and the Indenture. Additionally, the
         Transferor, pursuant to Section 11.02, and the Servicer, pursuant to
         Section 12.02, respectively, shall indemnify the Owner Trustee with
         respect to certain matters. This

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<PAGE>

         indemnity shall survive the termination of this Agreement and the
         Indenture or the termination of the Trust and the resignation or
         removal of the Owner Trustee.

                  (b)      The Servicer hereby agrees to pay or reimburse the
         fees and expenses of the Indenture Trustee as provided in Section 6.07
         of the Indenture.

         SECTION 14.08     Eligibility Requirements for Owner Trustee. The Owner
Trustee under this Agreement shall at all times be a corporation (i) having an
office in the same State as the location of the Corporate Trust Office as
specified in this Agreement; (ii) organized and doing business under the laws of
such State or the United States of America; (iii) authorized under such laws to
exercise corporate trust powers; (iv) having a net worth of at least
$50,000,000; (v) subject to supervision or examination by federal or State
authorities; and (vi) the long-term unsecured debt of which is rated at least
_____ or which is approved by the Insurer and each Rating Agency. If such
corporation shall publish reports of condition at least annually, pursuant to
law or to the requirements of the aforesaid supervising or examining authority,
then for the purpose of this Section 14.08, the combined capital and surplus of
such corporation shall be deemed to be its combined capital and surplus as set
forth in its most recent report of condition so published. In case at any time
the Owner Trustee shall cease to be eligible in accordance with the provisions
of this Section 14.08, the Owner Trustee shall resign immediately in the manner
and with the effect specified in Section 14.09.

         SECTION 14.09     Resignation or Removal of Owner Trustee. The Owner
Trustee may at any time resign and be discharged from the trusts hereby created
by giving written notice thereof to the Servicer. Upon receiving such notice of
resignation, the Servicer, with the prior written consent of the Insurer (so
long as it is the Controlling Party), shall promptly appoint a successor Owner
Trustee, by written instrument, in duplicate, one copy of which instrument shall
be delivered to the resigning Trustee and one copy to the successor Owner
Trustee. If no successor Owner Trustee shall have been so appointed and have
accepted appointment within 30 days after the giving of such notice of
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Owner Trustee.

         If at any time the Owner Trustee shall cease to be eligible in
accordance with the provisions of Section 14.08 and shall fail to resign after
written request therefor by the Servicer, or if at any time the Owner Trustee
shall be legally unable to act, or shall be adjudged a bankrupt or insolvent, or
a receiver of the Owner Trustee or of its property shall be appointed, or any
public officer shall take charge or control of the Owner Trustee or of its
property or affairs for the purpose of rehabilitation, conservation, or
liquidation, then the Servicer may remove the Owner Trustee. If it shall remove
the Owner Trustee under the authority of the immediately preceding sentence, the
Servicer shall promptly appoint a successor Owner Trustee by written instrument,
in duplicate, one copy of which instrument shall be delivered to the Owner
Trustee so removed and one copy to the successor Owner Trustee.

         Any resignation or removal of the Owner Trustee and appointment of a
successor Owner Trustee pursuant to any of the provisions of this Section 14.09
shall not become effective until acceptance of appointment by the successor
Owner Trustee pursuant to Section 14.10.

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         SECTION 14.10     Successor Owner Trustee. Any successor Owner Trustee
appointed pursuant to Section 14.09 shall execute, acknowledge, and deliver to
the Servicer and to its predecessor Owner Trustee an instrument accepting such
appointment under this Agreement, and thereupon the resignation or removal of
the predecessor Owner Trustee shall become effective and such successor Owner
Trustee, without any further act, deed, or conveyance, shall become fully vested
with all the rights, powers, duties, and obligations of its predecessor under
this Agreement, with like effect as if originally named as Trustee. The
predecessor Owner Trustee shall deliver to the successor Owner Trustee all
documents and statements held by it under this Agreement; and the Servicer and
the predecessor Owner Trustee shall execute and deliver such instruments and do
such other things as may reasonably be required for fully and certainly vesting
and confirming in the successor Owner Trustee all such rights, powers, duties,
and obligations.

         No successor Owner Trustee shall accept appointment as provided in this
Section 14.10 unless at the time of such acceptance such successor Owner Trustee
shall be eligible pursuant to Section 14.08.

         Upon acceptance of appointment by a successor Owner Trustee pursuant to
this Section 14.10, the Servicer shall mail notice of the successor of such
Trustee under this Agreement to the Indenture Trustee and to all Holders of
Certificates at their addresses as shown in the Certificate Register. If the
Servicer shall fail to mail such notice within 10 days after acceptance of
appointment by the successor Owner Trustee, the successor Owner Trustee shall
cause such notice to be mailed at the expense of the Servicer.

         SECTION 14.11     Merger or Consolidation of Owner Trustee. Any
corporation into which the Owner Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion, or consolidation to which the Owner Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Owner Trustee, shall be the successor of the Owner Trustee
hereunder, provided such corporation shall be eligible pursuant to Section
14.08, without the execution or filing of any instrument or any further act on
the part of any of the parties hereto, anything herein to the contrary
notwithstanding.

         SECTION 14.12     Appointment of Co-Trustee or Separate Owner Trustee.
Notwithstanding any other provisions of this Agreement, at any time, for the
purpose of meeting any requirements of any jurisdiction in which any part of the
Trust or any Financed Vehicle may at the time be located, the Servicer and the
Owner Trustee acting jointly shall have the power and shall execute and deliver
all instruments to appoint one or more Persons approved by the Owner Trustee to
act as co-trustee, jointly with the Owner Trustee, or separate trustee or
separate trustees, of all or any part of the Trust, and to vest in such Person,
in such capacity and for the benefit of the Certificateholders, such title to
the Trust, or any part thereof, and, subject to the other provisions of this
Section 14.12, such powers, duties, obligations, rights, and trusts as the
Servicer and the Owner Trustee may consider necessary or desirable. If the
Servicer shall not have joined in such appointment within 15 days after the
receipt by it of a request so to do, or in the case an Event of Servicer Default
shall have occurred and be continuing, the Owner Trustee alone shall have the
power to make such appointment. No co-trustee or separate trustee under this
Agreement shall be required to meet the terms of eligibility as a successor
Owner Trustee

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<PAGE>

pursuant to Section 14.08 and no notice to Certificateholders of the appointment
of any co-trustee or separate trustee shall be required pursuant to Section
14.10.

         Each 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 Owner Trustee shall be conferred
                           upon and exercised or performed by the Owner 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 Owner 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 (whether as Trustee under this
                           Agreement or as successor to the Servicer under this
                           Agreement), the Owner 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
                           exercised and performed singly by such separate
                           trustee or co-trustee, but solely at the direction of
                           the Owner Trustee;

                  (ii)     No trustee under this Agreement shall be personally
                           liable by reason of any act or omission of any other
                           trustee under this Agreement; and

                  (iii)    The Servicer and the Owner Trustee acting jointly may
                           at any time accept the resignation of or remove any
                           separate trustee or co-trustee.

         Any notice, request, or other writing given to the Owner 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 XIV. 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
Owner Trustee or separately, as may be provided therein, subject to all the
provisions of this Agreement, specifically including every provision of this
Agreement relating to the conduct of, affecting the liability of, or affording
protection to, the Owner Trustee. Each such instrument shall be filed with the
Owner Trustee and a copy thereof given to the Servicer.

         Any separate trustee or co-trustee may at any time appoint the Owner
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 Owner Trustee, to the extent permitted by law, without the appointment of
a new or successor Owner Trustee.

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         SECTION 14.13     Representations and Warranties of Owner Trustee. The
Owner Trustee shall make the following representations and warranties on which
the Transferor, the Certificateholders and the Secured Parties may rely:

                  (a)      Organization and Existence. The Owner Trustee is a
         national banking corporation duly organized and validly existing under
         the laws of the State of Delaware and authorized to engage in a banking
         and trust business under such laws.

                  (b)      Power and Authority. The Owner Trustee has full
         power, authority, and legal right to execute, deliver, and perform this
         Agreement, and shall have taken all necessary action to authorize the
         execution, delivery, and performance by it of this Agreement.

                  (c)      Duly Executed. This Agreement has been duly executed
         and delivered by the Owner Trustee constitutes the legal, valid, and
         binding agreement of the Owner Trustee, enforceable in accordance with
         its terms, except as such enforceability may be limited by (i)
         bankruptcy, insolvency, liquidation, reorganization, moratorium,
         conservatorship, receivership or other similar laws now or hereinafter
         in effect relating to the enforcement of creditors' rights in general,
         as such laws would apply in the event of a bankruptcy, insolvency,
         liquidation, reorganization, moratorium, conservatorship, receivership
         or similar occurrence affecting the Owner Trustee, and (ii) general
         principles of equity (regardless of whether such enforceability is
         considered in a proceeding in equity or at law) as well as concepts of
         reasonableness, good faith and fair dealing.

                                   ARTICLE XV

                              TERMINATION SERVICER

         SECTION 15.01     Termination of the Trust. The respective obligations
and responsibilities of the Transferor, the Servicer, the Standby Servicer, the
Back-up Servicer, Indenture Trustee and the Owner Trustee created hereby and the
Trust created by this Agreement shall terminate upon (i) the disposition of the
Trust corpus as of the last day of any Collection Period at the direction of the
Servicer, at its option, pursuant to Section 15.02, or (ii) the payment to
Noteholders and the Insurer of all amounts required to be paid to them pursuant
to this Agreement, the Indenture and the Insurance Agreement (as set forth in
writing by the Insurer) and the disposition of all property held as part of the
Trust; provided, however, that in no event shall the trust created by this
Agreement continue beyond the expiration of 21 years from the date as of which
this Agreement is executed. The Servicer shall promptly notify the Owner Trustee
of any prospective termination pursuant to this Section 15.01. Notwithstanding
the foregoing, the Trust shall continue and the Owner Trustee shall pursue
recovery of any Preference Amounts under the Policy and the distribution of the
same to Noteholders until the Policy terminates by its own terms.

         SECTION 15.02     Optional Disposition of All Receivables. On the last
day of any Collection Period on which the Pool Balance is equal to or less than
10% of the Original Pool Balance, the Servicer shall have the option to cause
the Owner Trustee to sell (to the Servicer or any other person designated by the
Servicer) the corpus of the Trust at a price (the "Optional

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<PAGE>

Disposition Price") equal to the fair market value of the Receivables, but not
less than the sum of (x) 100% of the outstanding principal balance of the Notes
(including any overdue principal or interest thereon), (y) accrued and unpaid
interest on such amount computed at a rate equal to the weighted average
Contract Rate, and (z) all amounts due and owing to the Servicer, the Back-up
Servicer, the Standby Servicer, the Indenture Trustee, the Owner Trustee and the
Insurer minus any amounts representing payments received on the Receivables not
yet applied to the interest related thereto or to reduce the principal balance
thereof. The proceeds of such sale will be deposited into the Collection Account
for distribution to the Indenture Trustee (and, to the extent applicable, the
Insurer) on the next succeeding Payment Date in accordance with Article VIII of
the Indenture. The Servicer shall notify the Owner Trustee on or before the
Determination Date if the Pool Balance as of the end of the related Collection
Period will be less than or equal to 10% of the Original Pool Balance. The
Servicer shall notify the Owner Trustee on or before the Determination Date if
the Servicer intends to exercise its option to purchase the corpus of the Trust
pursuant to this Section 15.02. Such price shall be deposited to the Collection
Account in immediately available funds by 12:00 noon, New York City time, on the
Payment Date and, upon notice to the Owner Trustee and the Indenture Trustee of
such deposit, the Owner Trustee shall transfer the Receivables and the
Receivable Files to the purchaser, whereupon the Notes and the Certificates
shall no longer evidence any right or interest in the Receivables or any
proceeds thereof. The fair market value of the outstanding Receivables for
purposes of this Section 15.02 shall be an amount equal to the average of the
bid prices for such assets taken as a whole, provided to the Servicer by two
independent, nationally recognized dealers in automobile loans substantially
similar to the Receivables.

                                  ARTICLE XVI

                            MISCELLANEOUS PROVISIONS

         SECTION 16.01     Amendment.

                  (a)      This Agreement may be amended from time to time by
         the Issuer, the Transferor, the Servicer, the Back-up Servicer, the
         Standby Servicer, the Owner Trustee and the Indenture Trustee and, (i)
         so long as the Insurer is the Controlling Party, with the prior written
         consent of the Insurer and, (ii) if an Insurer Default has occurred and
         is continuing or the Insurance Agreement has terminated with the
         consent of Holders of at least 51% of the Principal Balance of the
         Notes (which consent given pursuant to this Section or pursuant to any
         other provision of this Agreement shall be conclusive and binding on
         such Holders and on all future Holders of such Notes and of any Notes
         issued upon the transfer thereof or in exchange thereof or in lieu
         thereof whether or not notation of such consent is made upon the Notes)
         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 Notes; provided, however,
         that no such amendment shall (a) increase or reduce in any manner the
         amount of, or accelerate or delay the timing of, or change the
         allocation or priority of, collections of payments on Receivables or
         payments that shall be required to be made on any Note or Certificate
         or change the applicable interest rate payable on any Note without the
         consent of each Noteholder and Certificateholder affected thereby, (b)
         reduce the aforesaid percentage of the Note Balance required to consent
         to any such amendment, without the consent of the

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<PAGE>

         Holders of all Notes then outstanding or eliminate the right of the
         Noteholder or the Certificateholder to consent to any change described
         in clause (a) affecting the Noteholder or the Certificateholder without
         the consent of the Noteholder or the Certificateholder, as applicable,
         or (c) result in a downgrade or withdrawal of the then current rating
         of the Notes by either of the Rating Agencies without the consent of
         all the Noteholders; provided, further that this Agreement may be
         amended from time to time by the Issuer, the Transferor, the Servicer,
         the Back-up Servicer, the Standby Servicer, the Owner Trustee, the
         Indenture Trustee, the Insurer (so long as it is the Controlling
         Party), without the prior consent of the Noteholders to cure any
         ambiguity, to correct or supplement any provision herein which may be
         inconsistent with any other provision herein or to make any other
         provisions with respect to matters or questions arising under this
         Agreement; provided that such action shall not adversely affect in any
         material respect the interests of the Holders of the Notes, as
         evidenced by an opinion of counsel to such effect.

                  (b)      The Owner Trustee shall furnish prior notice of any
         such proposed amendment to each Rating Agency and promptly after the
         execution of any such amendment or consent, the Indenture Trustee shall
         furnish a copy of such amendment and/or consent, if applicable, to each
         Noteholder, the Insurer and each of the Rating Agencies.

                  (c)      So long as it is the Controlling Party, the Insurer
         shall have the right to exercise all rights, including voting rights,
         which the Noteholders are entitled to exercise pursuant to this
         Agreement, without any consent of such Noteholders; provided, however,
         that without the consent of each Noteholder affected thereby, the
         Insurer shall not exercise such rights to amend this Agreement in any
         manner that would (i) reduce the amount of, or delay the timing of,
         collections of payments on the Receivables or distributions which are
         required to be made on any Note, (ii) adversely affect in any material
         respect the interests of the Holders of any Notes, or (iii) alter the
         rights of any such Holder to consent to such amendment.

                  (d)      Notwithstanding any provision in this Agreement to
         the contrary, in the event an Insurer Default shall have occurred and
         be continuing or the Insurance Agreement has terminated, the Insurer
         shall not have the right to take any action under this Agreement,
         consent to or to control or direct the actions of the Trust, the
         Transferor, the Servicer, the Back-up Servicer, the Standby Servicer,
         the Indenture Trustee or the Owner Trustee pursuant to the terms of
         this Agreement, nor shall the consent of the Insurer be required with
         respect to any action (or waiver of a right to take action) to be taken
         by the Trust, the Transferor, the Servicer, the Back-up Servicer, the
         Standby Servicer, the Indenture Trustee, the Owner Trustee or the
         Noteholders or the Certificateholder.

                  (e)      It shall not be necessary for the consent of the
         Certificateholder or the Noteholders pursuant to this Section 16.01 to
         approve the particular form of any proposed amendment or consent, but
         it shall be sufficient if such consent shall approve the substance
         thereof. The manner of obtaining such consents and of evidencing the

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         authorization of the execution thereof by the Certificateholder shall
         be subject to such reasonable requirements as the Owner Trustee may
         prescribe.

                  (f)      Promptly after the execution of any amendment to the
         Certificate of Trust, the Owner Trustee shall cause the filing of such
         amendment with the Secretary of State of the State of Delaware.

                  (g)      Prior to the execution of any amendment to this
         Agreement, the Owner Trustee shall be entitled to receive and rely upon
         an Opinion of Counsel stating that the execution of such amendment is
         authorized or permitted by this Agreement and the Opinion of Counsel
         referred to in Section 16.02(i)(1). The Owner Trustee may, but shall
         not be obligated to, enter into any such amendment which affects the
         Owner Trustee's own rights, duties, or immunities under this Agreement.

         SECTION 16.02     Protection of Title to Trust.

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

                  (b)      Neither the Transferor nor the Servicer shall change
         its name, identity, or corporate structure in any manner that would,
         could, or might make any financing statement or continuation statement
         filed by the Transferor in accordance with paragraph (a) above
         seriously misleading within the meaning of Section 9-402(7) of the UCC,
         unless it shall have given the Owner Trustee at least 60 days' prior
         written notice thereof.

                  (c)      The Transferor and the Servicer shall give the Owner
         Trustee at least 60 days' prior written notice of any relocation of its
         principal executive office if, as a result of such relocation, the
         applicable provisions of the UCC would require the filing of any
         amendment of any previously filed financing or continuation statement
         or of any new financing statement (in which case the Servicer shall
         file or cause to be filed such amendment or continuation statement or
         new financing statement). The Owner Trustee shall be permitted to waive
         the 60 day notice period to any shorter period; provided that such UCC
         financing statements or amendments have been filed on or before the
         effective date of any such waiver. The Servicer shall at all times
         maintain each office from which it shall service Receivables, and its
         principal executive office, within the United States of America.

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

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<PAGE>

         with respect to) each Receivable and the amounts from time to time
         deposited in the Collection Account in respect of such Receivable.

                  (e)      The Servicer shall maintain its computer systems so
         that, from and after the time of sale under this Agreement of the
         Receivables to the Owner Trustee, the Servicer's master computer
         records (including any back-up archives) that refer to a Receivable
         shall indicate clearly with reference to the particular trust that such
         Receivable is owned by the Owner Trustee. Indication of the Owner
         Trustee's ownership of a Receivable shall be deleted from or modified
         on the Servicer's computer systems when, and only when, the Receivable
         shall have been paid in full or repurchased.

                  (f)      If at any time the Transferor or the Servicer shall
         propose to sell, grant a security interest in, or otherwise transfer
         any interest in automotive receivables to any prospective purchaser,
         lender, or other transferee, the Servicer shall give to such
         prospective purchaser, lender, or other transferee computer tapes,
         records, or print-outs (including any restored from back-up archives)
         that, if they shall refer in any manner whatsoever to any Receivable,
         shall indicate clearly that such Receivable has been sold and is owned
         by the Owner Trustee and pledged to the Indenture Trustee.

                  (g)      Upon reasonable prior notice, the Servicer shall
         permit the Owner Trustee and its agents at any time during normal
         business hours to inspect, audit, and make copies of and abstracts from
         the Servicer's records regarding any Receivable provided, that such
         inspection and audit shall not unreasonably interfere with the
         Servicer's daily business operations.

                  (h)      Upon request, the Servicer shall furnish to the Owner
         Trustee, the Indenture Trustee and the Insurer (so long as it is the
         Controlling Party), within five Business Days, a list of all
         Receivables (by contract number and name of Obligor) then held as part
         of the Trust, together with a reconciliation of such list to the
         Schedule of Receivables and to each of the Servicer's Certificates
         furnished before such request indicating removal of Receivables from
         the Trust.

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

                           (1)      promptly after the execution and delivery of
                           this Agreement and of each amendment thereto, an
                           Opinion of Counsel either (a) stating that, in the
                           opinion of such counsel, all financing statements and
                           continuation statements have been executed and filed
                           that are necessary fully to preserve and protect the
                           interest of the Owner Trustee in the Receivables and
                           reciting the details of such filings or referring to
                           prior Opinions of Counsel in which such details are
                           given, or (b) stating that, in the opinion of such
                           counsel, no such action shall be necessary to
                           preserve and protect such interest; and

                           (2)      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, an Opinion of Counsel, dated as of a date
                           during such 90-day

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<PAGE>

                           period, either (a) stating that, in the opinion of
                           such counsel, all financing statements and
                           continuation statements have been executed and filed
                           that are necessary fully to preserve and protect the
                           interest of the Owner Trustee in the Receivables, and
                           reciting the details of such filings or referring to
                           prior Opinions of Counsel in which such details are
                           given, or (b) stating that, in the opinion of such
                           counsel, no such action shall be necessary to
                           preserve and protect such interest.

                  (j)      If the Back-up Servicer or the Standby Servicer is
         acting as the successor Servicer, it shall be reimbursed for any costs
         incurred by it in performing its duties pursuant to this Section.

         SECTION 16.03     Limitation on Rights of Certificateholders.

                  (a)      The death or incapacity of a Certificateholder shall
         not operate to terminate this Agreement or the Trust, nor entitle such
         Certificateholder's legal representatives or heirs to claim an
         accounting or to take any action or commence any proceeding in any
         court for a partition or winding up of the Trust, nor otherwise affect
         the rights, obligations, and liabilities of the parties to this
         Agreement or any of them.

                  (b)      No Certificateholder shall have any right to vote
         (except as provided in this Agreement) or in any manner otherwise
         control the operation and management of the Trust, or the obligations
         of the parties to this Agreement except as expressly set forth herein,
         nor shall anything in this Agreement set forth, or contained in the
         terms of the Notes or Certificates, be construed so as to constitute
         the Noteholders or Certificateholders from time to time as partners or
         members of an association; nor shall any Noteholders or
         Certificateholder be under any liability to any third person by reason
         of any action taken pursuant to any provision of this Agreement.

                  (c)      No Noteholder or Certificateholder shall have any
         right by virtue or by availing itself of any provisions of this
         Agreement to institute any suit, action, or proceeding in equity or at
         law upon or under or with respect to this Agreement, unless such Holder
         previously shall have given to the Owner Trustee a written notice of
         default and of the continuance thereof, as hereinbefore provided, and
         unless also the Noteholder or Certificateholder requests in writing to
         the Owner Trustee to institute such action, suit, or proceeding in its
         own name as Trustee under this Agreement and shall have offered to the
         Owner Trustee such reasonable indemnity as it may require against the
         costs, expenses, and liabilities to be incurred therein or thereby, and
         the Owner Trustee, for 30 days after its receipt of such notice,
         request, and offer of indemnity, shall have neglected or refused to
         institute any such action, suit, or proceeding and during such 30-day
         period no direction inconsistent with such written request has been
         given to the Owner Trustee.

         SECTION 16.04     Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS,
AND REMEDIES OF THE PARTIES UNDER THIS AGREEMENT SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS AND

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WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES (EXCEPT WITH REGARD TO THE UCC).

         SECTION 16.05     Notices. All demands, notices, and communications
under this Agreement shall be in writing, personally delivered, sent by
facsimile to, sent by courier to or mailed by certified mail, return receipt
requested, and shall be deemed to have been duly given unless otherwise provided
herein, upon receipt:

                  (a)      in the case of the Transferor to the agent for
         service as specified in this Agreement; at the following address: Bay
         View Transaction Corporation, 1840 Gateway Drive, San Mateo, California
         94404, or at such other address as shall be designated by the
         Transferor in a written notice to the Servicer or Trustee,

                  (b)      in the case of the Servicer to the agent for service
         as specified in this Agreement; at the following address: Bay View
         Acceptance Corporation, 818 Oakpark Road, Covina, California 91724,

                  (c)      in the case of the Owner Trustee; at the Corporate
         Trust Office,

                  (d)      in the case of the Insurer; at ____________________,

                  (e)      in the case of the Indenture Trustee; at--__________,

                  (f)      in the case of the Back-up Servicer; at_________, and

                  (g)      in the case of the Standby Servicer; at--___________.

         Unless otherwise provided herein, any notice so mailed within the time
prescribed in this Agreement shall be conclusively presumed to have been duly
given, whether or not the Certificateholder shall receive such notice.

         SECTION 16.06     Severability of Provisions. If any one or more of
the covenants, agreements, provisions, or terms of this Agreement shall be for
any reason whatsoever held invalid, then such covenants, agreements, provisions,
or terms shall be deemed severable from the remaining covenants, agreements,
provisions, or terms of this Agreement and shall in no way affect the validity
or enforceability of the other provisions of this Agreement.

         SECTION 16.07     Assignment. Notwithstanding anything to the contrary
contained herein, except as provided below or in Sections 11.03 and 12.03 and as
provided in the provisions of this Agreement concerning the resignation of the
Servicer, this Agreement may not be assigned by the Transferor, the Servicer,
the Back-up Servicer or the Standby Servicer without the prior written consent
of the Owner Trustee and the Controlling Party.

TRUST AND SERVICING AGREEMENT

                                       65

<PAGE>

         SECTION 16.08     Certificates Nonassessable and Fully Paid.
Certificateholders shall not be personally liable for obligations of the Trust.
The interests represented by the Certificates shall be nonassessable for any
losses or expenses of the Trust or for any reason whatsoever, and, upon
authentication thereof by the Owner Trustee pursuant to Section 10.02,
Certificates shall be deemed fully paid.

         SECTION 16.09     Nonpetition Covenants. Notwithstanding any prior
termination of this Agreement, the Servicer, the Backup Servicer, the Standby
Servicer, and the Owner Trustee shall not, prior to the date which is one year
and one day after the termination of this Agreement with respect to the Trust or
the Transferor, acquiesce, petition or otherwise invoke or cause the Trust or
the Transferor to invoke the process of any court or government authority for
the purpose of commencing or sustaining a case against the Trust or the
Transferor under any Federal or state bankruptcy, insolvency or similar law or
appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or
other similar official of the Trust or the Transferor or any substantial part of
its property, or ordering the winding up or liquidation of the affairs of the
Trust or the Transferor.

         SECTION 16.10     No Recourse. Each Certificateholder, by accepting a
Certificate, acknowledges that such Certificateholder's Certificate represents a
100% beneficial interest in the assets of the Trust only and does not represent
an interest in or obligation of the Transferor, the Servicer, the Back-up
Servicer, the Standby Servicer, the Owner Trustee, the Indenture Trustee, the
Insurer, or any Affiliate thereof, and no recourse may be had against such
parties or their assets, except as may be expressly set forth or contemplated in
this Agreement.

         SECTION 16.11     Further Assurances. The Transferor, the Servicer, the
Back-up Servicer and the Standby Servicer agree to do and perform, from time to
time, any and all acts and to execute any and all further instruments required
or reasonably requested by the Indenture Trustee or the Insurer more fully to
effect the purposes of this Agreement, including, without limitation, the
execution of any financing statements or continuation statements relating to the
Receivables for filing under the provisions of the UCC of any applicable
jurisdiction.

         SECTION 16.12     No Waiver; Cumulative Remedies. No failure to
exercise and no delay in exercising, on the part of the Owner Trustee, the
Insurer, the Noteholders or the Certificateholders, any right, remedy, power or
privilege hereunder, shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, remedy, power or privilege hereunder preclude any
other or further exercise thereof or the exercise of any other right, remedy,
power or privilege. The rights, remedies, powers and privileges herein provided
are cumulative and not exhaustive of any rights, remedies, powers and privileges
provided by law.

         SECTION 16.13     Third-Party Beneficiaries. This Agreement will inure
to the benefit of and be binding upon the parties hereto, the Indenture Trustee,
the Noteholders and the Certficateholders, respectively, and their respective
successors and permitted assigns. Except as may be otherwise provided in this
Agreement, no other person will have any right or obligation hereunder. The
Owner Trustee (including in its individual capacity), and the Insurer are each
an express third party beneficiary of this Agreement. Each of the parties to the
Purchase Agreement hereby agrees that the Insurer shall be permitted but not
obligated to enforce the rights of the

TRUST AND SERVICING AGREEMENT

                                       66

<PAGE>

Transferor directly thereunder in the place and stead of the Transferor but the
Insurer shall have no obligations under the Purchase Agreement.

         SECTION 16.14     Actions by Noteholders or Certificateholders.

                  (a)      Wherever in this Agreement a provision is made that
         an action may be taken or a notice, demand, or instruction given by
         Noteholders or by Certificateholders, as the case may be, such action,
         notice, demand or instruction may be taken or given by any Noteholder
         or by any Certificateholder, unless such provision requires a specific
         percentage of Noteholders or Certificateholders, as the case may be.

                  (b)      Any request, demand, authorization, direction,
         notice, consent, waiver or other action provided by this Agreement to
         be taken or given by Noteholders or Certificateholders, as the case may
         be, may be embodied in any evidenced by one or more instruments or
         substantially similar tenor signed by such Noteholders or
         Certificateholders, as the case may be, in person or by an agent duly
         appointed in writing.

                  (c)      The fact and date of the execution by any Noteholder
         or any Certificateholder of any instrument or writing may be proved in
         any reasonable manner which the Indenture Trustee deems sufficient.

                  (d)      Any request, demand, authorization, direction,
         notice, consent, waiver, or other act by a Noteholder or a
         Certificateholder, as the case may be, shall bind such Noteholder or
         Certificateholder, as the case may be, and every subsequent holder of
         such Certificate or Note issued upon the registration of transfer
         thereof or in exchange therefor or in lieu thereof in respect of
         anything done or omitted to be done by the Indenture Trustee, the
         Transferor, the Servicer, the Back-up Servicer or the Standby Servicer
         in reliance thereon, whether or not notation of such action is made
         upon such Certificate or Note.

                  (e)      The Indenture Trustee may require such additional
         proof of any matter referred to in this Section as it shall deem
         necessary.

         SECTION 16.15     Corporate Obligation. No recourse may be taken,
directly or indirectly, against any partner, incorporator, subscriber to the
capital sock, stockholder, director, officer or employee of the Transferor, the
Servicer, the Back-up Servicer or the Standby Servicer with respect to their
respective obligations and indemnities under this Agreement or any certificate
or other writing delivered in connection herewith.

         SECTION 16.16     Independence of the Servicer, Back-up Servicer and
Standby Servicer. For all purposes of this Agreement, each of the Servicer,
Back-up Servicer and Standby Servicer shall be an independent contractor and
shall not be subject to the supervision of the Trust, the Indenture Trustee or
the Owner Trustee with respect to the manner in which it accomplishes the
performance of its obligations hereunder. Unless expressly authorized by this
Agreement, the Servicer, Back-up Servicer and Standby Servicer shall have no
authority to act for or represent the Issuer or the Owner Trustee in any way and
shall not otherwise be deemed an agent of the Issuer or the Owner Trustee.

TRUST AND SERVICING AGREEMENT

                                       67

<PAGE>

         SECTION 16.17     No Joint Venture. Noting contained in this Agreement
(i) shall constitute the Servicer, the Back-up Servicer or the Standby Servicer
and either of the Trust or the Owner Trustee as members of any partnership,
joint venture, association, syndicate, unincorporated business or other separate
entity, (ii) shall be construed to impose any liability as such on any of them
or (iii) shall be deemed to confer on any of them any express, implied or
apparent authority to incur any obligation or liability on behalf of the others.

         SECTION 16.18     Headings. The headings of articles and sections and
the table of contents contained in this Agreement are provided for convenience
only. They form no part of this Agreement and shall not affect its construction
or interpretation. Unless otherwise indicated, all references to articles and
sections in this Agreement refer to the corresponding articles and sections of
this Agreement.

         SECTION 16.19     Entire Agreement. This Agreement sets forth the
entire agreement between the parties with respect to the subject matter hereof,
and this Agreement supersedes and replaces any agreement or understanding that
may have existed between the parties prior to the date hereof in respect of such
subject matter.

         SECTION 16.20     Effect of Policy Expiration Date. Notwithstanding
anything to the contrary set forth herein, all references to any right of the
Insurer to direct, appoint, consent to, accept, approve of, take or omit to take
any action under this Agreement shall be inapplicable at all times after
expiration of the Policy or so long as an Insurer Default has occurred and is
continuing, and (i) if such reference provides for another party or parties to
take or omit to take such action following an Insurer Default, such party or
parties shall also be entitled to take or omit to take such action, following
the expiration of the Policy and (ii) if such reference does not provide for
another party or parities to take or omit to take such action following an
Insurer Default, then the Indenture Trustee acting at the direction of the
Majority Noteholders shall have the right to take or omit to take any such
action, following the expiration of the Policy or so long as an Insurer Default
has occurred and is continuing. In addition, any other provision of this
Agreement which is operative based in whole or in part on whether an Insurer
Default has or has not occurred shall, at all times on or after the expiration
of the Policy, be deemed to refer to whether or not the expiration of the Policy
has occurred.

         SECTION 16.21     Sarbanes-Oxley Certifications. The certifications
required by the Sarbanes-Oxley Act of 2002 and the rules of the Securities and
Exchange Commission promulgated thereunder to be included in filings with
respect to the Trust pursuant to the Securities Exchange Act of 1934, as
amended, shall be made by BVAC, so long as BVAC is the Servicer; if BVAC is no
longer the Servicer, such certification shall be made by the Transferor. If BVAC
is no longer the Servicer, the successor Servicer shall provide to the
Transferor all information as the Transferor may reasonably request in order to
fulfill its obligations to make such certifications. In addition, the Indenture
Trustee shall provide to BVAC or the Transferor (whichever of the two is then
required to make such certifications) with a certification signed by a
Responsible Officer (as defined in the Indenture) stating that such Responsible
Officer is not actually aware (without any independent duty or inquiry or
investigation) of any matters which would cause the certification to be made by
BVAC or the Transferor, as the case may be, to be incorrect.

TRUST AND SERVICING AGREEMENT

                                       68

<PAGE>

         SECTION 16.22     Counterparts. For the purpose of facilitating the
execution of this Agreement and for other purposes, this Agreement may be
executed simultaneously in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

TRUST AND SERVICING AGREEMENT

                                       69

<PAGE>

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

                                         BAY VIEW TRANSACTION CORPORATION,
                                         as Transferor

                                         By:____________________________________
                                            Name:
                                            Title:

                                         BAY VIEW ACCEPTANCE CORPORATION,
                                         as Servicer

                                         By:____________________________________
                                            Name:
                                            Title:

                                         _______________________________________
                                         as Back-up Servicer

                                         By:____________________________________
                                            Name:
                                            Title:

                                         _______________________________________
                                         as Standby Servicer

                                         By:____________________________________
                                            Name:
                                            Title:

                                         _______________________________________
                                         as Indenture Trustee

                                         By:____________________________________
                                            Name:
                                            Title:

TRUST AND SERVICING AGREEMENT

<PAGE>

                                         ______________________________________,
                                         as Owner Trustee

                                         By:____________________________________
                                            Name:
                                            Title:

TRUST AND SERVICING AGREEMENT

                                        2

<PAGE>

                                                                       Exhibit 1

                           Owner Trustee's Certificate
                            pursuant to Section 14.02
                      of the Trust and Servicing Agreement

         ____________________, as owner trustee (the "Owner Trustee") of the Bay
View _____ Owner Trust created pursuant to the Trust and Servicing Agreement
(the "Trust Agreement") dated as of __________, among Bay View Transaction
Corporation, as depositor (the "Transferor"), Bay View Acceptance Corporation,
as servicer (the "Servicer") [________], as Back-up Servicer, [________], as
Standby Servicer, [________], as Indenture Trustee and the Owner Trustee, does
hereby sell, transfer, assign, and otherwise convey to Bay View Acceptance
Corporation without recourse, representation, or warranty, all of the Owner
Trustee's right, title, and interest in and to all of the Receivables (as
defined in the Trust Agreement) identified in the attached Servicer's
Certificate as "Purchased Receivables," which have been repurchased by the
Transferor pursuant to Section 7.02 or Section 8.08 and all security and
documents relating thereto.

         IN WITNESS WHEREOF I have hereunto set my hand this ____ day of ______.

EXHIBIT 1 TO
TRUST AND SERVICING AGREEMENT

                                       1

<PAGE>

                                                                       Exhibit 2

                           Owner Trustee's Certificate
                            pursuant to Section 14.02
                      of the Trust and Servicing Agreement

         ____________________, as trustee (the "Owner Trustee") of the Bay View
_____ Owner Trust created pursuant to the Trust and Servicing Agreement (the
"Trust Agreement") dated as of __________, among Bay View Transaction
Corporation, as depositor (the "Transferor"), Bay View Acceptance Corporation,
as servicer (the "Servicer"), [____], as Back-up Servicer, [_____], as Standby
Servicer, [_____], as Indenture Trustee and the Owner Trustee, does hereby sell,
transfer, assign, and otherwise convey to the Servicer, representation, or
warranty, all of the Owner Trustee's right, title, and interest in and to all of
the Receivables (as defined in the Trust Agreement) identified in the attached
Servicer's Certificate as "Purchased Receivables," which have been purchased by
the Servicer pursuant to Section 8.10 or Section 15.02, and all security and
documents relating thereto.

         IN WITNESS WHEREOF I have hereunto set my hand this _____ day of _____.

EXHIBIT 2 TO
TRUST AND SERVICING AGREEMENT

                                       1

<PAGE>

                                                                       Exhibit 3

                         Form of Servicer's Certificate
                            pursuant to Sections 8.12
                      of the Trust and Servicing Agreement

                             SERVICER'S CERTIFICATE

EXHIBIT 3 TO
TRUST AND SERVICING AGREEMENT

                                       1

<PAGE>

                                    EXHIBIT A

                             CERTIFICATE OF TRUST OF
                            BAY VIEW _____OWNER TRUST

         This Certificate of Trust of Bay View _____ Owner Trust (the "Trust"),
dated as of __________, is being duly executed and filed by
____________________, a Delaware banking corporation, as trustee, to form a
business trust under the Delaware Business Trust Act (12 Del. Code, Section 3801
et seq.).

         1.       Name. The name of the business trust formed hereby is BAY VIEW
_____ OWNER TRUST.

         2.       Delaware Trustee. The name and business address of the trustee
of the Trust in the State of Delaware is ____________________, (Address),
Attention: __________.

         IN WITNESS WHEREOF, the undersigned, being the sole trustee of the
Trust, has executed this Certificate of Trust as of the date first above
written.

                  ____________________, not in its individual capacity but
                  solely as owner trustee under a Trust Agreement dated as of
                  ____________________,

                                         By:____________________________________

                                         Name:__________________________________

                                         Title:_________________________________

EXHIBIT A TO
TRUST AND SERVICING AGREEMENT

                                       1

<PAGE>

                                                                       EXHIBIT B

                              [Form of Certificate]

                           BAY VIEW _____ OWNER TRUST
                              AUTOMOBILE RECEIVABLE
                               BACKED CERTIFICATE

         evidencing an undivided interest in the Trust, as defined below, the
property of which includes a pool of simple interest installment loan and
security agreements and installment sales contracts secured by new and used
automobiles, light-duty trucks, motorcycles, recreational vehicles and vans. The
contracts were sold to the Owner Trustee by Bay View Securitization Corporation.

         (This Certificate does not represent an interest in or obligation of
Bay View Transaction Corporation or any of its affiliates. Neither this
Certificate nor the underlying Receivables, as defined below, are insured or
guaranteed by any other government agency).

                  NUMBER                                One Unit
                  R-1

         THIS CERTIFIES THAT Bay View Transaction Corporation, a Delaware
corporation, is the registered owner of a nonassessable, fully-paid interest in
the Bay View _____ Owner Trust (the "Trust"), a Delaware business trust. The
Trust was created pursuant to a Trust and Servicing Agreement dated as of
__________ (the "Agreement"), among Bay View Transaction Corporation as
Transferor, Bay View Acceptance Corporation, as Servicer, ______, as Back-up
Servicer, ________, as Standby Servicer, _________, as Indenture Trustee and
____________________ (the "Owner Trustee"), a summary of certain of the
pertinent provisions of which is set forth below. A copy of the Agreement may be
examined during normal business hours at the Corporate Trust Office of the Owner
Trustee by any Certificateholder upon request. To the extent not otherwise
defined herein, the capitalized terms used herein have the meanings assigned to
them in the Agreement. This Certificate is issued under and is subject to the
terms, provisions, and conditions of the Agreement, to which Agreement the
holder of this Certificate by virtue of the acceptance hereof assents and by
which such holder is bound. The property of the Trust includes a pool of simple
and precomputed interest loan and security agreements and installment sales
contracts for new and used automobiles, light-duty trucks, sports utility
vehicles, vans, motorcycles, recreational vehicles and vans (the "Receivables"),
all monies paid thereon, and all monies due thereon, including Accrued Interest,
after __________ (but excluding Accrued Interest paid or due before the Closing
Date), security interests in the vehicles financed thereby, certain bank
accounts and the proceeds thereof and certain other property and rights
described in the Agreement and the proceeds of the foregoing.

         This Certificate represents an interest in certain assets of the Trust,
including the right to receive a portion of the collections and other amounts at
the times and in the amounts specified in the Agreement. The rights of the
Certificateholders in the assets of the Trust are subordinated to the rights of
the Noteholders as set forth in the Indenture and the Agreement.

EXHIBIT B TO
 TRUST AND SERVICING AGREEMENT

                                        1

<PAGE>

         Unless the certificate of authentication hereon shall have been
executed by a Responsible Officer of the Owner Trustee, by manual or facsimile
signature, this Certificate shall not entitle the holder hereof to any benefit
under the Agreement or be valid for any purpose. Registration of transfer of
this Certificate to a person may not be effected unless (a) the Insurer consents
to such transfer, (b) such transfer will not adversely affect the tax treatment
of the Trust or the Notes, and (c) the Rating Agency Condition has been
satisfied with respect to such transfer.

         The obligations and responsibilities created by the Agreement and the
Trust created thereby shall terminate upon the payment to Certificateholders of
all amounts required to be paid to them pursuant to the Agreement and the
disposition of all property held as part of the Trust. The Servicer may at its
option cause the Owner Trustee to sell the corpus of the Trust at a price not to
be less than the price specified in the Agreement; however, such right is
exercisable only as of the last day of a Collection Period on which the Pool
Balance is less than or equal to 10% of the Original Pool Balance. The
Certificateholders are required to pay any unpaid fees and expenses of the Owner
Trustee and in connection with such disposition.

         Although this Certificate summarizes certain provisions of the
Agreement, this Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for information with respect to the
interests, rights, benefits, obligations, proceeds and duties evidenced hereby
and the rights, duties and obligations of the Owner Trustee. In the event of any
inconsistency or conflict between the terms of this Certificate and the terms of
the Agreement, the terms of the Agreement shall control. By acceptance of this
Certificate, the holder agrees to be bound by the terms of the Agreement,
including the agreement to treat the Trust as a partnership for income tax
purposes and the Certificates as an equity interest therein.

         IN WITNESS WHEREOF, the Owner Trustee on behalf of the Trust and not in
its individual capacity has caused this Certificate to be duly executed.

Dated:  __________

                                         BAY VIEW _____ OWNER TRUST

                                         By______________________, solely in its
                                           capacity as Owner Trustee

                                         By____________________________________,
                                           Responsible Officer

EXHIBIT B TO
 TRUST AND SERVICING AGREEMENT

                                       2

<PAGE>

                          CERTIFICATE OF AUTHENTICATION

     This is the Certificate referred to in the Within-mentioned Agreement.

                                         ______________________________________,
                                         as Owner Trustee

                                         By____________________________________,
                                           Signatory

Dated:  __________

EXHIBIT 3 TO
 TRUST AND SERVICING AGREEMENT

                                       1

<PAGE>

                                   ASSIGNMENT

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

PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE

(Please print or typewrite name and address, including postal zip code, of
assignee) the within Certificate, and all rights thereunder, hereby irrevocably
constituting and appointing Attorney to transfer said Certificate on the books
of the Certificate Registrar, with full power of substitution in the premises.

Dated: __________

                                        *
                              Signature Guaranteed:

                                        *

*        NOTICE: The signature to this assignment must correspond with the name
         as it appears upon the face of the within Certificate in every
         particular, without alteration, enlargement or any change whatever.
         Such signature must be guaranteed by a member of the New York Stock
         Exchange or a commercial bank, trust company savings bank or other
         savings and loan institution.

EXHIBIT 3 TO
 TRUST AND SERVICING AGREEMENT

                                       2

<PAGE>

                                   Schedule A
                      to the Trust and Servicing Agreement

                             SCHEDULE OF RECEIVABLES

          Transferor
        Account Number
   (as of the Cutoff Date)         Name of Obligor               Amount Financed

$

                  A COPY OF THE SCHEDULE OF RECEIVABLES, INCLUDING THE ABOVE
                  CAPTIONED INFORMATION WITH RESPECT TO EACH RECEIVABLE, WAS
                  DELIVERED TO THE OWNER TRUSTEE WITH A COUNTERPART OF THE TRUST
                  AND SERVICING AGREEMENT.

SCHEDULE A TO
 TRUST AND SERVICING AGREEMENT

                                       1

<PAGE>

                                   Schedule B
                      to the Trust and Servicing Agreement

1.       Location of Receivables:

         Bay View Acceptance Corporation
         818 Oakpark Drive
         Covina, California 91724

SCHEDULE B TO
 TRUST AND SERVICING AGREEMENT

                                        1<PAGE>

                                                                     Exhibit 4.3

                                    INDENTURE

                                     between

                           BAY VIEW _____ OWNER TRUST

                                    as Issuer

                                       and

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

                              as Indenture Trustee

                             Dated as of __________

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                              Page
                                                                                                              ----
<S>                                                                                                           <C>
ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE........................................................    2

         SECTION 1.01     Definitions.......................................................................    2
         SECTION 1.02     Incorporation by Reference of Trust Indenture Act.................................   13
         SECTION 1.03     Rules of Construction.............................................................   13
         SECTION 1.04     Directions........................................................................   14

ARTICLE II THE NOTES........................................................................................   14

         SECTION 2.01     Form..............................................................................   14
         SECTION 2.02     Execution, Authentication and Delivery............................................   14
         SECTION 2.03     Temporary Notes...................................................................   15
         SECTION 2.04     Registration; Registration of Transfer and Exchange...............................   15
         SECTION 2.05     Mutilated, Destroyed, Lost or Stolen Notes........................................   16
         SECTION 2.06     Payment of Principal and Interest; Defaulted Interest.............................   17
         SECTION 2.07     Cancellation......................................................................   19
         SECTION 2.08     Book-Entry Notes..................................................................   19
         SECTION 2.09     Notices to Clearing Agency........................................................   20
         SECTION 2.10     Definitive Notes..................................................................   20
         SECTION 2.11     Release of Pledged Assets.........................................................   20
         SECTION 2.12     Tax Treatment.....................................................................   20
         SECTION 2.13     ERISA.............................................................................   21
         SECTION 2.14     CUSIP NUMBERS.....................................................................   21

ARTICLE III COVENANTS.......................................................................................   21

         SECTION 3.01     Payment of Principal and Interest.................................................   21
         SECTION 3.02     Maintenance of Office or Agency...................................................   21
         SECTION 3.03     Money for Payments to be Held in Trust............................................   22
         SECTION 3.04     Existence.........................................................................   23
         SECTION 3.05     Protection of Trust Estate........................................................   23
         SECTION 3.06     Opinions as to Pledged Assets.....................................................   24
         SECTION 3.07     Performance of Obligations; Servicing of Receivables..............................   25
         SECTION 3.08     Negative Covenants................................................................   26
         SECTION 3.09     Annual Statement as to Compliance.................................................   27
         SECTION 3.10     Issuer May Consolidate, etc. Only on Certain Conditions...........................   27
         SECTION 3.11     Successor Transferee..............................................................   29
         SECTION 3.12     No Other Business.................................................................   29
         SECTION 3.13     No Borrowing......................................................................   29
         SECTION 3.14     Servicer's Obligations............................................................   30
         SECTION 3.15     Guarantees, Loans, Advances and Other Liabilities.................................   30
         SECTION 3.16     Capital Expenditures..............................................................   30
         SECTION 3.17     Restricted Payments...............................................................   30
         SECTION 3.18     Notice of Events of Default.......................................................   30
         SECTION 3.19     Further Instruments and Acts......................................................   30
         SECTION 3.20     Compliance with Laws..............................................................   30
</TABLE>

                                       i

<PAGE>

<TABLE>
<S>                                                                                                            <C>
         SECTION 3.21     Amendments of Trust Agreement.....................................................   31

ARTICLE IV SATISFACTION AND DISCHARGE.......................................................................   31

         SECTION 4.01     Satisfaction and Discharge of Indenture...........................................   31
         SECTION 4.02     Application of Trust Money........................................................   32
         SECTION 4.03     Repayment of Monies Held by Paying Agent..........................................   32

ARTICLE V EVENTS OF DEFAULT; REMEDIES.......................................................................   33

         SECTION 5.01     Events of Default.................................................................   33
         SECTION 5.02     Rights Upon Event of Default......................................................   34
         SECTION 5.03     Collection of Indebtedness and Suits for Enforcement by Indenture Trustee.........   35
         SECTION 5.04     Remedies..........................................................................   37
         SECTION 5.05     Optional Preservation of the Receivables..........................................   38
         SECTION 5.06     Priorities........................................................................   38
         SECTION 5.07     Limitation of Suits...............................................................   39
         SECTION 5.08     Unconditional Rights of Noteholders to Receive Principal and Interest.............   39
         SECTION 5.09     Restoration of Rights and Remedies................................................   40
         SECTION 5.10     Rights and Remedies Cumulative....................................................   40
         SECTION 5.11     Delay or Omission Not a Waiver....................................................   40
         SECTION 5.12     Control by Controlling Party......................................................   40
         SECTION 5.13     Waiver of Past Defaults...........................................................   41
         SECTION 5.14     Undertaking for Costs.............................................................   41
         SECTION 5.15     Waiver of Stay or Extension Laws..................................................   41
         SECTION 5.16     Action on Notes...................................................................   41
         SECTION 5.17     Performance and Enforcement of Certain Obligations................................   42

ARTICLE VI THE INDENTURE TRUSTEE............................................................................   42

         SECTION 6.01     Duties of Indenture Trustee.......................................................   42
         SECTION 6.02     Rights of Indenture Trustee.......................................................   44
         SECTION 6.03     Individual Rights of Indenture Trustee............................................   46
         SECTION 6.04     Indenture Trustee's Disclaimer....................................................   46
         SECTION 6.05     Notice of Defaults................................................................   46
         SECTION 6.06     Reports by Indenture Trustee to Holders...........................................   46
         SECTION 6.07     Compensation and Indemnity........................................................   46
         SECTION 6.08     Replacement of Indenture Trustee..................................................   47
         SECTION 6.09     Successor Indenture Trustee by Merger.............................................   48
         SECTION 6.10     Appointment of Co-Indenture Trustee or Separate Indenture Trustee.................   49
         SECTION 6.11     Eligibility.......................................................................   50
         SECTION 6.12     Preferential Collection of Claims Against Issuer..................................   50
         SECTION 6.13     Representations and Warranties of Indenture Trustee...............................   50
         SECTION 6.14     Disqualification of the Indenture Trustee.........................................   51
         SECTION 6.15     Control by the Controlling Party..................................................   51
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>                                                                                                            <C>
ARTICLE VII NOTEHOLDERS' LISTS AND REPORTS..................................................................   51

         SECTION 7.01     Issuer to Furnish Indenture Trustee Names and Addresses of Noteholders............   51
         SECTION 7.02     Preservation of Information; Communications to Noteholders........................   51
         SECTION 7.03     Reports by Issuer.................................................................   52
         SECTION 7.04     Reports by Indenture Trustee......................................................   52

ARTICLE VIII DISTRIBUTIONS; STATEMENTS TO THE NOTEHOLDERS...................................................   52

         SECTION 8.01     Collection Account................................................................   52
         SECTION 8.02     Collections.......................................................................   53
         SECTION 8.03     Purchase Amounts..................................................................   53
         SECTION 8.04     Distributions to Parties..........................................................   53
         SECTION 8.05     Servicer Advances.................................................................   57
         SECTION 8.06     Net Deposits......................................................................   57
         SECTION 8.07     Payahead Account..................................................................   57
         SECTION 8.08     Release of Pledged Assets.........................................................   57
         SECTION 8.09     Opinion of Counsel................................................................   58

ARTICLE IX CREDIT ENHANCEMENT...............................................................................   58

         SECTION 9.01     Subordination.....................................................................   58
         SECTION 9.02     Spread Account....................................................................   58
         SECTION 9.03     Policy............................................................................   59
         SECTION 9.04     Surrender of the Policy...........................................................   61

ARTICLE X SUPPLEMENTAL INDENTURES...........................................................................   62

         SECTION 10.01    Supplemental Indentures Without Consent of Noteholders............................   62
         SECTION 10.02    Supplemental Indentures With Consent of Noteholders...............................   63
         SECTION 10.03    Execution of Supplemental Indentures..............................................   64
         SECTION 10.04    Effect of Supplemental Indenture..................................................   64
         SECTION 10.05    Conformity with Trust Indenture Act...............................................   64
         SECTION 10.06    Reference in Notes to Supplemental Indentures.....................................   65

ARTICLE XI REDEMPTION OF NOTES..............................................................................   65

         SECTION 11.01    Redemption........................................................................   65
         SECTION 11.02    Form of Redemption Notice.........................................................   65
         SECTION 11.03    Notes Payable on Redemption Date..................................................   66

ARTICLE XII MISCELLANEOUS...................................................................................   66

         SECTION 12.01    Compliance Certificates and Opinions, etc.........................................   66
         SECTION 12.02    Form of Documents Delivered to Indenture Trustee..................................   67
         SECTION 12.03    Acts of Noteholders...............................................................   68
         SECTION 12.04    Notices, etc., to Indenture Trustee, Issuer, Insurer and Rating Agencies..........   69
         SECTION 12.05    Notices to Noteholders; Waiver....................................................   69
         SECTION 12.06    Alternate Payment and Notice Provisions...........................................   70
         SECTION 12.07    Conflict With Trust Indenture Act.................................................   70
         SECTION 12.08    Effect of Headings and Table of Contents..........................................   70
</TABLE>

                                      iii

<PAGE>

<TABLE>
<S>                                                                                                            <C>
         SECTION 12.09    Successors and Assigns............................................................   70
         SECTION 12.10    Separability......................................................................   71
         SECTION 12.11    Benefits of Indenture.............................................................   71
         SECTION 12.12    Legal Holidays....................................................................   71
         SECTION 12.13    Governing Law.....................................................................   71
         SECTION 12.14    Counterparts......................................................................   71
         SECTION 12.15    Recording of Indenture............................................................   71
         SECTION 12.16    Trust Obligation..................................................................   71
         SECTION 12.17    No Petition.......................................................................   72
         SECTION 12.18    Inspection........................................................................   72
         SECTION 12.19    Limitation of Liability of Owner Trustee..........................................   72
         SECTION 12.20    Certain Matters Regarding the Insurer.............................................   72
         SECTION 12.21    No Legal Title in Holders.........................................................   73
         SECTION 12.22    Sarbanes-Oxley Certifications.....................................................   73
</TABLE>

EXHIBITS

<TABLE>
<S>               <C>
Schedule A        Form of Depository Agreement
Exhibit A-1       Form of Class A-1 Note
Exhibit A-2       Form of Class A-2 Note
Exhibit A-3       Form of Class A-3 Note
Exhibit A-4       Form of Class A-4 Note
Exhibit B         Form of Class B Note
</TABLE>

Cross Reference Table

<TABLE>
<CAPTION>
Trust Indenture          Indenture
  Act Section             Section
---------------          ---------
<S>                      <C>
    310(a)                6.11
    310(b)                6.11
    310(c)                N/A
    311(a)                6.12
    311(b)                6.12
    311(c)                N/A
    312(a)                7.01, 7.02
    312(b)                7.02
    312(c)                7.02
    313(a)                7.04
    313(b)                7.04
    313(c)                7.03
    314(a)                7.03
    314(b)                3.06
    314(c)                3.06, 4.01,
                         13.01
    314(d)               13.01
    314(e)               13.01
</TABLE>

                                       iv

<PAGE>

<TABLE>
<CAPTION>
Trust Indenture          Indenture
  Act Section             Section
---------------          ---------
<S>                      <C>
    314(f)                 N/A
    315(a)                6.01
    315(b)                6.05
    315(c)                6.01
    315(d)                6.01
    315(e)                5.14
    316(a)                5.04
    316(b)               11.02
    316(c)               13.03
    317(a)                5.03
    317(b)                3.03
    318(a)                1.02
</TABLE>

                                       v

<PAGE>

This INDENTURE, dated as of __________, is entered into between BAY VIEW _____
OWNER TRUST, a Delaware business trust, as issuer (the "Issuer"), and
__________, a __________ banking corporation, as indenture trustee (the
"Indenture Trustee").

         Each party agrees as follows for the benefit of the other parties and
for the benefit of the Noteholders and the Insurer:

                                 GRANTING CLAUSE

         The Issuer hereby Grants to the Indenture Trustee on the Closing Date,
on behalf of and for the benefit of the Noteholders and the Insurer, without
recourse, all of the Issuer's right, title and interest in, to and under, (i)
the Receivables listed on Schedule A to the Trust Agreement, (ii) the security
interests in the Financed Vehicles or in any other property granted by Obligors
pursuant to the Receivables, (iii) any Liquidation Proceeds, (iv) any proceeds
from claims and other amounts relating to Insurance Policies and other items
financed under the Receivables or otherwise covering an Obligor or a Financed
Vehicle, (v) all property (including the right to receive future Liquidation
Proceeds) that secures a Receivable and that has been or may be acquired
pursuant to the liquidation of the Receivable, (vi) funds deposited in the
Spread Account (and any Eligible Investments purchased therewith) and the
Collection Account, (vii) the interest of the Issuer in any proceeds from
recourse to Dealers relating to the Receivables, (viii) all documents contained
in the Receivable Files relating to the Receivables, (ix) all monies paid and
all monies due, including Accrued Interest, as of and after the Cutoff Date (but
excluding Accrued Interest paid on or prior to the Closing Date), (x) the rights
of the Transferor pursuant to the Purchase Agreement and the rights of the
Issuer pursuant to the Trust Agreement including without limitation, the right
to require BVAC to repurchase any such Receivables as to which there has been a
breach of the representations and warranties contained therein, (xi) the
benefits of the Policy, and (xii) all proceeds (including, without limitation,
"proceeds" as defined in the UCC of the jurisdiction the law of which governs
the perfection of the interest in such Receivables so transferred) of any of the
foregoing. Such property described in the preceding sentence, together with (a)
any and all other right, title and interest, including any beneficial interest
the Issuer may have in the Collection Account, the Spread Account and the
Payahead Account, (b) the funds deposited in and financial assets credited to
and from time to time on deposit in such accounts, and all Eligible Investments
and other securities, instruments and other investments purchased from such
funds, shall hereinafter be referred to as the "Pledged Assets." The Issuer does
not convey to the Indenture Trustee, and the Pledged Assets do not include, any
interest in any contracts with Dealers related to any "dealer reserve" or any
rights to the recapture of any dealer reserve with respect to such Receivables.

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

         The Indenture Trustee, as Indenture Trustee on behalf of the
Noteholders and the Insurer, acknowledges such Grant, accepts the trusts under
this Indenture in accordance with the provisions of this Indenture and agrees to
perform its duties required in this Indenture to the best

                                        1

<PAGE>

of its ability to the end that the interests of the Noteholders may be
adequately and effectively protected.

                                   ARTICLE I

                   DEFINITIONS AND INCORPORATION BY REFERENCE

         SECTION 1.01      Definitions.

         (a)      Except as otherwise specified herein or as the context may
otherwise require, (i) capitalized terms that are used herein that are not
otherwise require, (i) capitalized terms that are used herein that are not
otherwise defined herein shall have the meanings assigned to them in the Trust
Agreement (as defined below) and (ii) the following terms have the respective
meanings set forth below for all purposes of this Indenture.

         "Accelerated Principal Amount" means, for any Payment Date after giving
effect to all payments of interest and principal (other than any Accelerated
Principal Amount) to the Noteholders, an amount equal to the lesser of (1) the
Available Excess Funds or (2) the amount necessary to reduce the then aggregate
Note Balances below the Pool Balance as of the end of the related Collection
period until the aggregate Pool Balance exceeds the aggregate Note Balances by
_____% of the initial Note Balances or $__________.

         "Act" shall have the meaning specified in Section 12.03(a).

         "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 to the Issuer and who is identified on the list of Authorized Officers
delivered by the Owner Trustee or to the Indenture Trustee on the Closing Date
(as such list may be modified or supplemented from time to time thereafter) and,
so long as the Administration Agreement is in effect, any Vice President or more
senior officer of the Administrator who is authorized to act for the
Administrator in matters relating to the Issuer and to be acted upon by the
Administrator pursuant to the Administration Agreement and who is identified on
a list of Authorized Officers delivered by the Administrator to the Indenture
Trustee on the Closing Date (as such list may be modified or supplemented from
time to time thereafter).

         "Available Excess Funds" for any Payment Date means the amount of
Available Funds remaining from such Payment Date after paying the Servicer, the
Noteholders and the Insurer the amounts they are entitled to receive, without
considering the amount of the Monthly Principal payment in respect of the
Accelerated Principal Amount.

         "Available Funds" has the meaning provided in the Trust Agreement.

         "Basic Documents" means the Certificate of Trust, the Trust Agreement,
the Administration Agreement, the Depository Agreement, the Insurance Agreement,
the Policy and this Indenture.

         "BVAC" means Bay View Acceptance Corporation, a Nevada corporation, and
its successors.

                                        2

<PAGE>

         "Book-Entry Notes" means a beneficial interest in the Notes, ownership
and transfers of which shall be made through book entries by a Clearing Agency
as described in Section 2.08.

         "Certificateholders" mean the owners or holders of the Certificates
pursuant to the Trust Agreement.

         "Class" means all Notes whose form is identical except for variation in
denomination, principal amount or owner.

         "Class A Monthly Interest" means the sum of Class A-1 Monthly Interest,
Class A-2 Monthly Interest, Class A-3 Monthly Interest and Class A-4 Monthly
Interest.

         "Class A Monthly Principal" means the sum of Class A-1 Monthly
Principal, Class A-2 Monthly Principal, Class A-3 Monthly Principal and Class
A-4 Monthly Principal.

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

         "Class A-l Interest Rate" means _____% per annum.

         "Class A-l Monthly Interest" means, (i) for the first Payment Date, the
product of one-three hundred sixtieth (1/360th) of the Class A-l Interest Rate,
the actual number of days from the Closing Date through the day before the first
Payment Date and the Class A-l Note Balance at the Closing Date and (ii) for any
subsequent Payment Date, the product of one-three hundred sixtieth (1/360th) of
the Class A-l Interest Rate, the actual number of days from the previous Payment
Date through the day before the related Payment Date and the Class A-l Note
Balance as of the immediately preceding Payment Date (after giving effect to any
distribution of Monthly Principal made on such immediately preceding Payment
Date).

         "Class A-1 Monthly Principal" means that portion of Monthly Principal
to be paid to Class A-1 Noteholders on each Payment Date in accordance with
Section 8.04.

         "Class A-l Note" means a promissory note executed on behalf of the
Trust and authenticated by the Indenture Trustee substantially in the form
attached hereto as Exhibit A-l.

         "Class A-l Note Balance" means, at any time, the Initial Class A-l Note
Balance minus all payments of Monthly Principal actually distributed to Class
A-l Noteholders as of such date of determination.

         "Class A-1 Noteholder" means the Person in whose name the respective
Class A-1 Note shall be registered in the Note Register, except that, solely for
the purposes of giving any consent, waiver, request, or demand pursuant to this
Indenture, the interest evidenced by any Class A-1 Note registered in the name
of the Issuer, the Transferor, the Servicer or BVAC, or any Person controlling,
controlled by, or under common control with the Issuer, the Transferor or the
Servicer, shall not be taken into account in determining whether the requisite
percentage necessary to effect any such consent, waiver, request, or demand
shall have been obtained.

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

                                        3

<PAGE>

         "Class A-2 Monthly Interest" means, (i) for the first Payment Date, the
product of (x) one twelfth of the Class A-2 Interest Rate, (y) the number of
days from the Closing Date through the day before the first Payment Date divided
by 30 (assuming the month of the Closing Date has 30 days) and (z) the Class A-2
Note Balance at the Closing Date and (ii) for any subsequent Payment Date, the
product of (x) one-twelfth of the Class A-2 Interest Rate and (y) the Class A-2
Note Balance as of the immediately preceding Payment Date (after giving effect
to any distribution of Monthly Principal made on such immediately preceding
Payment Date).

         "Class A-2 Monthly Principal" means that portion of Monthly Principal
to be paid to Class A-2 Noteholders on each Payment Date in accordance with
Section 8.04.

         "Class A-2 Note" means a promissory note executed on behalf of the
Trust and authenticated by the Indenture Trustee substantially in the form
attached hereto as Exhibit A-2.

         "Class A-2 Note Balance" means, at any time, the Initial Class A-2 Note
Balance minus all payments of Monthly Principal actually distributed to Class
A-2 Noteholders as of such date of determination.

         "Class A-2 Noteholder" means the Person in whose name the respective
Class A-2 Note shall be registered in the Note Register, except that, solely for
the purposes of giving any consent, waiver, request, or demand pursuant to this
Indenture, the interest evidenced by any Class A-2 Note registered in the name
of the Issuer, the Transferor, the Servicer or BVAC, or any Person controlling,
controlled by, or under common control with the Issuer, the Transferor or the
Servicer, shall not be taken into account in determining whether the requisite
percentage necessary to effect any such consent, waiver, request, or demand
shall have been obtained.

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

         "Class A-3 Monthly Interest" means, (i) for the first Payment Date, the
product of (x) one twelfth of the Class A-3 Interest Rate, (y) the number of
days from the Closing Date through the day before the first Payment Date divided
by 30 (assuming the month of the Closing Date has 30 days) and (z) the Class A-3
Note Balance at the Closing Date and (ii) for any subsequent Payment Date, the
product of (x) one-twelfth of the Class A-3 Interest Rate and (y) the Class A-3
Note Balance as of the immediately preceding Payment Date (after giving effect
to any distribution of Monthly Principal made on such immediately preceding
Payment Date).

         "Class A-3 Monthly Principal" means that portion of Monthly Principal
to be paid to Class A-3 Noteholders on each Payment Date in accordance with
Section 8.04.

         "Class A-3 Note" means a promissory note executed on behalf of the
Trust and authenticated by the Indenture Trustee substantially in the form
attached hereto as Exhibit A-3.

         "Class A-3 Note Balance" means, at any time, the Initial Class A-3 Note
Balance minus all payments of Monthly Principal actually distributed to Class
A-3 Noteholders as of such date of determination.

         "Class A-3 Noteholder" means the Person in whose name the respective
Class A-3 Note shall be registered in the Note Register, except that, solely for
the purposes of giving any

                                        4

<PAGE>

consent, waiver, request, or demand pursuant to this Indenture, the interest
evidenced by any Class A-3 Note registered in the name of the Issuer, the
Transferor, the Servicer or BVAC, or any Person controlling, controlled by, or
under common control with the Issuer, the Transferor or the Servicer, shall not
be taken into account in determining whether the requisite percentage necessary
to effect any such consent, waiver, request, or demand shall have been obtained.

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

         "Class A-4 Monthly Interest" means, (i) for the first Payment Date, the
product of (x) one twelfth of the Class A-4 Interest Rate, (y) the number of
days from the Closing Date through the day before the first Payment Date divided
by 30 (assuming the month of the Closing Date has 30 days) and (z) the Class A-4
Note Balance at the Closing Date and (ii) for any subsequent Payment Date, the
product of (x) one-twelfth of the Class A-4 Interest Rate and (y) the Class A-4
Note Balance as of the immediately preceding Payment Date (after giving effect
to any distribution of Monthly Principal made on such immediately preceding
Payment Date).

         "Class A-4 Monthly Principal" means that portion of Monthly Principal
to be paid to Class A-4 Noteholders on each Payment Date in accordance with
Section 8.04.

         "Class A-4 Note" means a promissory note executed on behalf of the
Trust and authenticated by the Indenture Trustee substantially in the form
attached hereto as Exhibit A-4.

         "Class A-4 Note Balance" means, at any time, the Initial Class A-4 Note
Balance minus all payments of Monthly Principal actually distributed to Class
A-4 Noteholders as of such date of determination.

         "Class A-4 Noteholder" means the Person in whose name the respective
Class A-4 Note shall be registered in the Note Register, except that, solely for
the purposes of giving any consent, waiver, request, or demand pursuant to this
Indenture, the interest evidenced by any Class A-4 Note registered in the name
of the Issuer, the Transferor, the Servicer or BVAC, or any Person controlling,
controlled by, or under common control with the Issuer, the Transferor or the
Servicer, shall not be taken into account in determining whether the requisite
percentage necessary to effect any such consent, waiver, request, or demand
shall have been obtained.

         "Class B Interest Rate" means _____% per annum.

         "Class B Monthly Interest" means, (i) for the first Payment Date, the
product of (x) one twelfth of the Class B Interest Rate, (y) the number of days
from the Closing Date through the day before the first Payment Date divided by
30 (assuming the month of the Closing Date has 30 days) and (z) the Class B Note
Balance at the Closing Date and (ii) for any subsequent Payment Date, the
product of (x) one-twelfth of the Class B Interest Rate and (y) the Class B Note
Balance as of the immediately preceding Payment Date (after giving effect to any
distribution of Monthly Principal made on such immediately preceding Payment
Date).

         "Class B Monthly Principal" means that portion of Monthly Principal to
be paid to Class B Noteholders on each Payment Date in accordance with Section
8.04.

                                        5

<PAGE>

         "Class B Note" means a promissory note executed on behalf of the Trust
and authenticated by the Indenture Trustee substantially in the form attached
hereto as Exhibit B.

         "Class B Note Balance" means, at any time, the Initial Class B Note
Balance minus all payments of Monthly Principal actually distributed to Class B
Noteholders as of such date of determination.

         "Class B Noteholder" means the Person in whose name the respective
Class B Note shall be registered in the Note Register, except that, solely for
the purposes of giving any consent, waiver, request, or demand pursuant to this
Indenture, the interest evidenced by any Class B Note registered in the name of
the Issuer, the Transferor, the Servicer or BVAC, or any Person controlling,
controlled by, or under common control with the Issuer, the Transferor or the
Servicer, shall not be taken into account in determining whether the requisite
percentage necessary to effect any such consent, waiver, request, or demand
shall have been obtained.

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

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

         "Controlling Party" means the Insurer, so long as no Insurer Default
shall have occurred and be continuing and the Insurance Agreement has not
terminated, and the Indenture Trustee, at the direction of the Majority
Noteholders, for so long as an Insurer Default shall have occurred and be
continuing or if the Insurance Agreement has terminated.

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

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

         "Definitive Notes" shall have the meaning specified in Section 2.08.

         "Depository Agreement" means the agreement dated __________, among the
Issuer, the Indenture Trustee and DTC, as the initial Clearing Agency, relating
to the Notes, substantially in the form attached hereto as Schedule A.

         "Dissolution Payment Date" means the Payment Date following the
liquidation of the trust corpus pursuant to Section 16.2 of the Trust Agreement.

         "DTC" means The Depository Trust Company, a New York corporation.

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

         "Event of Default" shall have the meaning specified in Section 5.01.

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

                                        6

<PAGE>

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

         "Final Maturity Date" means _____ with respect to the Class A-l Notes,
_____ with respect to the Class A-2 Notes, _____ with respect to the Class A-3
Notes, _____ with respect to the Class A-4 Notes and _____ with respect to the
Class B Notes.

         "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 Pledged Assets 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 Pledged Assets and all other
monies payable thereunder, to give and receive notices and other communications,
to make waivers or other agreements, to exercise all rights and options, to
bring proceedings in the name of the granting party or otherwise and generally
to do and receive anything that the granting party is or may be entitled to do
or receive thereunder or with respect thereto.

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

         "Indebtedness" means, with respect to any Person at any time, (i)
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); (ii)
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; (iii) current liabilities of such Person in respect of
unfunded vested benefits under plans covered by Title IV of ERISA; (iv)
obligations issued for or liabilities incurred on the account of such Person;
(v) obligations or liabilities of such Person arising under acceptance
facilities; (vi) obligations of such Person under any guaranties, 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; (vii) 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 (viii) 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 Trustee" means ____________________ a __________ banking
corporation, as the Indenture Trustee under this Indenture and its permitted
successors and assigns.

         "Independent" when used with respect to any specified Person, means
such a Person who (i) is in fact independent of the Issuer, the Transferor and
any of their respective Affiliates, (ii) is not a director, officer or employee
of the Issuer, the Transferor or any of their respective

                                        7

<PAGE>

Affiliates, (iii) is not a person related to any officer or director of the
Issuer, the Transferor or any of their respective Affiliates, (iv) is not a
holder (directly or indirectly) of more than 10% of any voting securities of the
Issuer, the Transferor or any of their respective Affiliates, and (v) is not
connected with the Issuer, the Transferor or any of their respective Affiliates
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 Indenture Trustee and the Insurer, so long as it is the
Controlling Party, under the circumstances described in, and otherwise complying
with, the applicable requirements of Section 12.01, made by an Independent
appraiser or other expert appointed by an Issuer Order and approved by the
Indenture Trustee, and, so long as it is the Controlling Party, the Insurer, 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.

         "Initial Class A-1 Note Balance" means $__________.

         "Initial Class A-2 Note Balance" means $__________.

         "Initial Class A-3 Note Balance" means $__________.

         "Initial Class A-4 Note Balance" means $__________.

         "Initial Class B Note Balance" means $__________.

         "Initial Note Balances" means $__________.

         "Insurance Premium" means for any Payment Date, an amount equal to the
product of (x) _____% per annum calculated for the actual number of days elapsed
during the Collection Period on the basis of a 360-day year and (y) the Note
Balances as of the Payment Date to which such Payment Date relates, payable
monthly in arrears.

         "Insurer Default" means the Insurer is in default under the Policy or
the Insurance Agreement after the expiration of any applicable cure period.

         "Issuer" means Bay View _____ Owner Trust as the issuer of the Notes
under this Indenture and its permitted successors and assigns.

         "Issuer Order" and "Issuer Request" means a written order or request
signed in the name of the Issuer by an Authorized Officer and delivered to the
Indenture Trustee.

         "Majority Noteholders" means, as of any date of determination, the
Holders holding in the aggregate 66 2/3% or more of the outstanding Note Balance
as of such date.

         "Monthly Interest" means the sum of Class A Monthly Interest and Class
B Monthly Interest.

         "Monthly Principal" means for any Payment Date, the sum of the
following:

                                        8

<PAGE>

                  (i)      the amount by which the Pool Balance declined during
         the related Collection Period;

                  (ii)     the amount, if any, which is necessary to reduce the
         Note Balance of a Class of Notes to zero on its Final Maturity Date;
         and

                  (iii)    the Accelerated Principal Amount.

For the purpose of determining Monthly Principal, the unpaid principal balance
of a Defaulted Receivable or a Purchased Receivable is deemed to be zero on and
after the last day of the Collection Period in which such Receivable became a
Defaulted Receivable or a Purchased Receivable.

         "Net Principal Policy Amount" means the Initial Note Balances as of the
first Payment Date minus all amounts previously drawn on the Policy or from the
Spread Account with respect to Monthly Principal.

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

         "Note Balance" means the Class A-1 Note Balance, the Class A-2 Note
Balance, the Class A-3 Note Balance, the Class A-4 Note Balance or the Class B
Note Balance, depending upon the context. When the term "Note Balances" is used
herein with respect to an issue relating to the consent of or voting of
Noteholders, such term shall refer only to the classes of Notes then Outstanding
such that the Noteholders will vote as a single class.

         "Noteholder" means any Holder of a Note.

         "Note Owner" means, with respect to a Book-Entry Note, the Person who
is the beneficial owner of such Book-Entry Note, as reflected on the books of
the Clearing Agency, or on the books of a Person maintaining an account with
such Clearing Agency (directly as a Clearing Agency Participant or as an
indirect participant, in each case in accordance with the rules of such Clearing
Agency).

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

         "Officer's Certificate" means a certificate signed by an Authorized
Officer of the Issuer, under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 12.01, and delivered to,
the Indenture Trustee or the Insurer, as applicable.

         "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 Transferor or the Issuer and who shall be satisfactory to the
Indenture Trustee and, if addressed to the Insurer, satisfactory to the Insurer,
and which shall comply with any applicable requirements of Section 12.01, and
shall be in form and substance satisfactory to the Indenture Trustee, and if
addressed to the Insurer, satisfactory to the Insurer.

                                        9

<PAGE>

         "Original Pool Balance" means $__________.

         "Outstanding" or "Outstanding Notes" 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
                  Indenture 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 for such notice has
                  been made, satisfactory to the Indenture 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 Indenture 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 Note Balances have given
                  any request, demand, authorization, direction, notice, consent
                  or waiver hereunder or under any other Basic Document, Notes
                  owned by the Issuer, the Transferor, BVAC, any other obligor
                  upon the Notes, or any of their respective Affiliates shall be
                  disregarded and deemed not to be Outstanding, except that, in
                  determining whether the Indenture Trustee shall be protected
                  in relying upon any such request, demand, authorization,
                  direction, notice, consent or waiver, only Notes that the
                  Indenture Trustee knows to be so owned shall be so
                  disregarded. Notes so owned that have been pledged in good
                  faith may be regarded as Outstanding if the pledgee
                  establishes to the satisfaction of the Indenture Trustee the
                  pledgee's right so to act with respect to such Notes and that
                  the pledgee is not the Issuer, the Transferor, BVAC, any other
                  obligor upon the Notes, or any of their respective Affiliates.

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

         "Pledged Assets" has the meaning provided in the Granting Clause of
this Indenture.

         "Policy" means the irrevocable financial guaranty insurance policy
dated as of __________, issued by the Insurer to the Indenture Trustee for the
benefit of the Noteholders and having a maximum amount available to be drawn in
respect of Monthly Interest and Monthly Principal equal to the Policy Amount.

         "Policy Amount" means with respect to any Payment Date:

                  (x)      the sum of (A) the lesser of (i) the Note Balances
(after giving effect to any distribution of Available Funds and any funds
withdrawn from the Spread Account to pay

                                       10

<PAGE>

Monthly Principal on such Payment Date) and (ii) the Net Principal Policy
Amount, plus (B) Monthly Interest, plus (C) the Monthly Servicing Fee; less

                  (y)      all amounts on deposit in the Spread Account on such
Payment Date (after giving effect to any amounts withdrawn from the Spread
Account to pay Monthly Principal on such Payment Date).

         "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.

         "Principal Payment Sequence" means the order in which Monthly Principal
shall be distributed among the Noteholders. The order of distribution of Monthly
Principal is:

         (1)      to the Class A-1 Noteholders until the Class A-1 Note Balance
has been reduced to zero;

         (2)      to the Class A-2 Noteholders until the Class A-2 Note Balance
has been reduced to zero;

         (3)      to the Class A-3 Noteholders until the Class A-3 Note Balance
has been reduced to zero;

         (4)      to the Class A-4 Noteholders until the Class A-4 Note Balance
has been reduced to zero; and

         (5)      to the Class B Noteholders until the Class B Note Balance has
been reduced to zero.

                  However, if the amount of Available Funds (together with
         amounts withdrawn from the Spread Account and/or the Policy) are not
         sufficient to pay the required payment of Class A Monthly Principal to
         Class A Noteholders in full on any Payment Date, the amount of such
         funds available to pay Class A Monthly Principal to Class A Noteholders
         will be distributed pro rata to the Class A Noteholders based upon the
         relative Note Balance of each class of Class A Notes.

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

         "Rating Agency Condition" means, with respect to any action, that (i)
_______________ shall have been given ten Business Days (or such shorter period
as is acceptable to _______________) prior notice thereof and that
_______________ shall have notified the Transferor, the Servicer, the Insurer
and the Issuer in writing that such action will not result in a qualification,
reduction or withdrawal of its then-current rating of any Class of Notes, (ii)
_______________ shall have been given ten Business Days (or such shorter period
as is acceptable to _______________) prior notice thereof and copies of all
documentation relating to

                                       11

<PAGE>

the event requiring such Rating Agency Condition and (iii) each Rating Agency
shall have confirmed to the Insurer that the shadow risk of the Insurer with
respect to the Notes is investment grade.

         "Rating Event" means the qualification, reduction or withdrawal by
either Rating Agency of its then-current rating of any Class of Notes.

         "Record Date" means, with respect to a Payment Date or Redemption Date,
the close of business on the last day of the related Collection Period.

         "Redemption Date" means the Payment Date specified by the Servicer or
the Issuer pursuant to Section 11.01.

         "Redemption Price" means an amount equal to the fair market value of
the Receivables but not less than the sum of: (i) the unpaid principal amount of
the Notes redeemed plus (ii) accrued and unpaid interest on the Notes at the
respective interest rates of each Class of Notes being so redeemed through the
end of the related Collection Period plus (iii) all amounts then due and owing
to the Insurer, the Servicer, any Successor Servicer, the Indenture Trustee and
the Owner Trustee.

         "Required Spread Amount" means on each Payment Date, the lesser of (x)
_____% of the Initial Note Balances and (y) the Note Balances as of the previous
Payment Date (after giving effect to any payment of Monthly Principal on such
Payment Date); provided, that, upon and during the continuance of an Indenture
Default or a Trigger Event, the Required Spread Amount shall be equal to the
Policy Amount as of such Payment Date, without giving effect to amounts on
deposit in the related Spread Account, after giving effect to any draws on the
Policy, draws on the related Spread Account and other distributions pursuant to
Section 8.04 on such Payment Date. Once such Indenture Default or Trigger Event
has been cured or discontinued, the Required Spread Amount shall be determined
as set forth above.

         "Responsible Officer" means, when used with respect to the Indenture
Trustee, any officer within the corporate trust department of the Indenture
Trustee including any director, managing director, vice president, assistant
vice president, assistant treasurer, assistant secretary or any other officer of
the Indenture Trustee customarily performing functions similar to those
performed by the persons who at the time shall be such officers, respectively,
or to whom any corporate trust matter is referred because of his knowledge of
and familiarity with the particular subject.

         "Servicer Default" means an Event of Servicer Default under the Trust
Agreement.

         "Successor Servicer" shall have the meaning specified in Section
3.07(e).

         "Trust Agreement" means the Trust and Servicing Agreement, dated as of
the date hereof, between the Transferor, the Servicer and the Owner Trustee.

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

                                       12

<PAGE>

         "United States" means the United States of America.

         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 Indenture
Trustee.

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

         All other TIA terms used in this Indenture that are defined 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 the context otherwise
requires:

                  (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;

                  (vi)     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
         are also to its permitted successors and assigns; and

                  (vii)    the words "hereof," "herein" and "hereunder" and
         words of similar import when used in this Indenture shall refer to this
         Indenture as a whole and not to any particular provision of this
         Indenture; Section, subsection and Schedule references

                                       13

<PAGE>

         contained in this Indenture are references to Sections, subsections and
         Schedules in or to this Indenture unless otherwise specified.

         SECTION 1.04      Directions. Any direction required to be given by the
Noteholders shall be given hereunder by the Insurer, unless the Insurer is no
longer the Controlling Party, in which case the Majority Noteholders shall be
entitled to give such direction.

                                   ARTICLE II

                                    THE NOTES

         SECTION 2.01      Form.

         (a) The Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4
Notes and Class B Notes, in each case together with the Indenture Trustee's
certificate of authentication, shall be in substantially the forms set forth as
Exhibits A-1, A-2, A-3, A-4 and B to this Indenture 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.

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

         (c) Each Note shall be dated the date of its authentication. The terms
of the Notes set forth in the exhibits hereto are part of the terms of this
Indenture.

         SECTION 2.02      Execution, Authentication and Delivery.

         (a) The Notes shall be executed on behalf of the Issuer by the Owner
Trustee, as provided herein. 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.

         (b) The Indenture Trustee shall, upon receipt of an Issuer Order,
authenticate and deliver for original issue Notes in the amount of the Initial
Class A-1 Note Balance, the Initial Class A-2 Note Balance, the Initial Class
A-3 Note Balance, the Initial Class A-4 Note Balance and the Initial Class B
Note Balance. The aggregate principal amount of the Notes outstanding at any
time may not exceed such respective amounts, except as otherwise 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 of $1,000 in excess thereof, except that one Note of each
Class may be issued in a different denomination.

                                       14

<PAGE>

         (c) 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 in the
forms of Notes attached as exhibits to this Indenture executed by the Indenture
Trustee by the manual signature of one of its authorized signatories, and such
certificate upon any Note shall be conclusive evidence, and the only evidence,
that such Note has been duly authenticated and delivered hereunder.

         SECTION 2.03      Temporary Notes.

         (a) Pending the preparation of definitive Notes, the Issuer may
execute, and upon receipt of an Issuer Order the Indenture Trustee shall
authenticate and deliver, temporary Notes that are printed, lithographed,
typewritten, mimeographed or otherwise produced, 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.

         (b) 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 anyone or more temporary Notes, the Issuer shall
execute and the Indenture Trustee shall authenticate and deliver in exchange
therefor a like tenor and 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.

         (a) The Issuer shall cause to be kept a register (the "Note Register")
in which, subject to such reasonable regulations as it may prescribe, the Issuer
shall provide for the registration of Notes and the registration of transfers of
Notes. The Indenture Trustee 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.

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

         (c) 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 Indenture Trustee shall authenticate and the
Noteholder shall obtain from the Indenture Trustee, in the

                                       15

<PAGE>

name of the designated transferee or transferees, one or more new Notes of the
same Class in any authorized denominations, of a like aggregate principal
amount.

         (d) At the option of the Holder, Notes may be exchanged for other Notes
of the same Class in any authorized denominations, of a like aggregate principal
amount, upon surrender of the Notes to be exchanged at such office or agency.
Whenever any Notes are so surrendered for exchange, the Issuer shall execute,
and the Indenture Trustee shall authenticate and the Noteholder shall obtain
from the Indenture Trustee, the Notes which the Noteholder making the exchange
is entitled to receive.

         (e) 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.

         (f) 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 Indenture 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 Indenture Trustee may require.

         (g) No service charge shall be made to a Holder for any registration of
transfer or exchange of Notes, but the Issuer or the Indenture 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 10.06 not
involving any transfer.

         (h) 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.

         (a) If (i) any mutilated Note is surrendered to the Indenture Trustee,
or the Indenture Trustee receives evidence to its satisfaction of the
destruction, loss or theft of any Note, and (ii) there is delivered to the
Indenture Trustee and the Insurer (unless an Insurer Default shall have occurred
and be continuing) such security or indemnity as may be required by them to hold
the Issuer, the Indenture Trustee and the Insurer harmless, then, in the absence
of notice to the Issuer, the Note Registrar or the Indenture Trustee that such
Note has been acquired by a bona fide purchaser, the Issuer shall execute and
upon its request the Indenture Trustee shall authenticate and deliver, in
exchange for or in lieu of any such mutilated, destroyed, lost or stolen Note, a
replacement Note of the same Class; 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

                                       16

<PAGE>

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, the Insurer and the Indenture Trustee shall be
entitled to recover such replacement Note (or such payment) from the Person to
whom it was delivered or any Person taking such replacement Note from such
Person to whom such replacement Note was delivered or any assignee of such
Person, except a 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, the Insurer or the Indenture Trustee in
connection therewith.

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

         (c) 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.

         (d) 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. In the case of the
registration of transfer of any Note, the Issuer, the Indenture Trustee, the
Insurer and any of their respective agents 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 Insurer, the Indenture Trustee nor any of
their respective agents shall be affected by notice to the contrary.

         SECTION 2.06      Payment of Principal and Interest; Defaulted
Interest.

         (a) Each Class of Notes shall accrue interest as provided in the
Indenture at the related interest rate for such Class, and such interest shall
be payable on each Payment Date as specified therein, subject to Section 3.01.
Interest accrued on any Note but not paid on any Payment Date will be due on the
immediately succeeding Payment Date, together with, to the extent permitted by
applicable law, interest on such shortfall at the related interest rate. 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 Payment
Date shall be paid to the Person in whose name such Note (or one or more
Predecessor Notes) is registered on the Record Date, 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 2.10, with respect to Notes registered on the Record
Date in the name of the nominee of the Clearing Agency (initially, such nominee
to be Cede & Co.), payment will be made by wire transfer in

                                       17

<PAGE>

immediately available funds to the account designated by such nominee and except
for the final installment of principal payable with respect to such Note on a
Payment Date, a Redemption Date or on the related Final Maturity Date, as the
case may be (and except for the Redemption Price for any Note called for
redemption pursuant to Section 11.01), which shall be payable as provided below.
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 on each Payment Date to
the extent provided in the form of the related Note set forth as an Exhibit
hereto. Notwithstanding the foregoing, the entire unpaid principal amount of the
Notes of a Class of Notes shall be due and payable, if not previously paid, on
the earlier of:

                  (i)      the Final Maturity Date of such Class;

                  (ii)     the Redemption Date;

                  (iii)    if (A) an Event of Default shall have occurred and be
         continuing, and (B) an Insurer Default shall not have occurred and be
         continuing, the date on which the Insurer shall have declared the Notes
         to be immediately due and payable in the manner provided in Section
         5.02; or

                  (iv)     if (A) an Event of Default shall have occurred and be
         continuing and (B) an Insurer Default shall have occurred and be
         continuing or the Policy shall have expired in accordance with its
         terms, the date on which the Noteholders representing not less than
         66 2/3% of the Note Balances have declared the Notes to be immediately
         due and payable in the manner provided in Section 5.02.

                  All principal payments on each Class of Notes shall be made
         pro rata to the Noteholders of such Class entitled thereto. The
         Indenture Trustee shall notify the Person in whose name a Note is
         registered at the close of business on the Record Date preceding the
         Payment Date on which the Issuer expects that the final installment of
         principal of and interest on such Note will be paid. Such notice shall
         be mailed within five Business Days of such Payment Date (or, in the
         case of Notes registered in the name of Cede & Co., as nominee of DTC,
         such notice shall be provided within one Business Day of such Payment
         Date) or receipt of notice of termination of the Trust pursuant to
         Section 16.01 of the Trust Agreement 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 11.02. In addition, the Administrator shall notify the Insurer
         and the Rating Agencies upon the final payment of interest and
         principal of each Class of Notes, and upon the termination of the
         Trust, in each case pursuant to the Administration Agreement.

         (c) Promptly following the date on which all principal of and interest
on the Notes has been paid in full and the Notes have been surrendered to the
Indenture Trustee, the Indenture

                                       18

<PAGE>

Trustee shall, if the Insurer has paid any amount in respect of the Notes under
the Policy or otherwise which has not been reimbursed to it, deliver such
surrendered Notes to the Insurer.

         SECTION 2.07      Cancellation. All Notes surrendered for payment,
registration of transfer, exchange or redemption shall, if surrendered to any
Person other than the Indenture Trustee, be delivered to the Indenture Trustee
and shall be promptly cancelled by the Indenture Trustee. The Issuer may at any
time deliver to the Indenture Trustee for cancellation any Notes previously
authenticated and delivered hereunder which the Issuer may have acquired in any
manner whatsoever, and all Notes so delivered shall be promptly cancelled by the
Indenture Trustee. No Notes shall be authenticated in lieu of or in exchange for
any Notes cancelled as provided in this Section, except as expressly permitted
by this Indenture. All cancelled Notes may be held or disposed of by the
Indenture Trustee in accordance with its standard retention or disposal policy
as in effect at the time unless the Issuer shall direct by an Issuer Order that
they be destroyed or returned to it; provided that such Issuer Order is timely
and the Notes have not been previously disposed of by the Indenture Trustee.

         SECTION 2.08      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 DTC, the initial Depository, by, or on
behalf of, the Issuer (except for any fractional units which cannot be accepted
by DTC). Such Notes shall initially be registered on the Note Register in the
name of Cede & Co., the nominee of the initial Clearing Agency, and no Note
Owner will receive a Definitive Note representing such Note Owner's interest in
such Note, except as provided in section 2.10. Unless and until definitive,
fully registered Notes (the "Definitive Notes") have been issued to Note Owners
pursuant to Section 2.10:

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

                  (ii)     the Note Registrar and the Indenture Trustee shall be
         entitled to deal with the Clearing Agency for all purposes of this
         Indenture (including the payment of principal of and interest on the
         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

                  (iv)     the rights of Note Owners shall be exercised only
         through the Clearing Agency and shall be limited to those established
         by law and agreements between such Note Owners and the Clearing Agency
         and/or the Clearing Agency Participants. Pursuant to the Depository
         Agreement, unless and until Definitive Notes are issued pursuant to
         Section 2.10, the Clearing Agency will make book-entry transfers among
         the Clearing Agency participants and receive and transmit payments of
         principal of and interest on the Notes to such Clearing Agency
         Participants; and

                  (v)      whenever this Indenture requires or permits actions
         to be taken based upon instructions or directions of Noteholders
         evidencing a specified percentage of the Note Balances, the Clearing
         Agency shall be deemed to represent such percentage only to the

                                       19

<PAGE>

         extent that it has received instructions to such effect from Note
         Owners and/or Clearing Agency Participants owning or representing,
         respectively, such required percentage of the beneficial interest in
         the Notes and has delivered such instructions to the Indenture Trustee.

         SECTION 2.09      Notices to Clearing Agency. Whenever a notice or
other communication to the Noteholders is required under this Indenture, unless
and until Definitive Notes shall have been issued to Note Owners pursuant to
Section 2.10, the Indenture Trustee shall give all such notices and
communications specified herein to be given to Noteholders to the Clearing
Agency, and shall have no obligation to the Note Owners.

         SECTION 2.10      Definitive Notes.

         (a) If (i) the Administrator advises the Indenture Trustee in writing
that the Clearing Agency is no longer willing or able to properly discharge its
responsibilities as described in the Depository Agreement, and the Administrator
or the Indenture Trustee is unable to locate a qualified successor, or (ii)
after the occurrence of an Event of Default or a Servicer Default, the
Controlling Party advises the Indenture Trustee through the Clearing Agency
Participants in writing that the continuation of a book-entry system through the
Clearing Agency is no longer in the best interests of the related Note Owners,
then the Indenture Trustee shall notify all Note Owners, through the Clearing
Agency, of the availability of Definitive Notes to Note Owners requesting the
same. Upon surrender to the Indenture Trustee of the Note or Notes evidencing
the Book Entry Notes by the Clearing Agency, accompanied by registration
instructions from the Clearing Agency, the Issuer shall execute and the
Indenture Trustee shall authenticate the Definitive Notes and deliver such
Definitive Notes in accordance with the instructions of the Clearing Agency.
None of the Issuer, the Note Registrar or the Indenture Trustee shall be liable
for any delay in delivery of such instructions and may conclusively rely on, and
shall be protected in relying on, such instructions. Upon the issuance of
Definitive Notes of a Class, the Indenture Trustee shall recognize the Holders
of the Definitive Notes as Noteholders hereunder.

         (b) The Indenture Trustee shall not be liable if the Indenture Trustee
or the Administrator is unable to locate a qualified successor Clearing Agency.
The Definitive Notes shall be typewritten, printed, lithographed or engraved or
produced by any combination of these methods (with or without steel engraved
borders), all as determined by the officers executing such Notes, as evidenced
by their execution of such Notes.

         SECTION 2.11      Release of Pledged Assets. Subject to Section 12.01
and the terms of the Basic Documents, the Indenture Trustee shall release
property from the lien of this Indenture only upon receipt of an Issuer Request
accompanied by an Officer's Certificate, an Opinion of Counsel and Independent
Certificates in accordance with Sections 314(c) and 314(d) (1) of the TIA or an
Opinion of Counsel in lieu of such Independent Certificates to the effect that
the TIA does not require any such Independent Certificates.

         SECTION 2.12      Tax Treatment. The Issuer has entered into this
Indenture, and the Notes will be issued, with the intention that, for federal,
state and local income, single business and franchise tax purposes, the Notes
will qualify as indebtedness of the Issuer secured by the Pledged Assets. The
Issuer, by entering into this Indenture, and each Noteholder, by its

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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 2.13      ERISA. Each purchaser or transferee of a Note that is
a Benefit and shall be deemed to have represented that the relevant conditions
for exemptive relief under Prohibited Transaction Class Exemption ("PTCE")
84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60 or PTCE 96-23 or other applicable
exemption providing substantially similar relief have been satisfied.

         SECTION 2.14      CUSIP NUMBERS. The Issuer in issuing the notes may
use "CUSIP" numbers (if then generally in use), and, if so, the Indenture
Trustee may use such "CUSIP" numbers in notices of redemption as a convenience
to the Holders; provided that any such notice may state that no representation
is made as to the correctness of such numbers either as printed on the Notes or
as contained in any notice of a redemption and that reliance may be placed only
on the other identification numbers printed on the Notes, and any such
redemption shall not be affected by any defect in or omission of such numbers.
The Issuer will promptly notify the Indenture Trustee of any change in the
"CUSIP" numbers

                                  ARTICLE III

                                    COVENANTS

         SECTION 3.01      Payment of Principal and Interest. The Issuer will
duly and punctually pay Monthly Interest and Monthly Principal on the Notes in
accordance with the terms of the Notes and this Indenture. Without limiting the
foregoing, subject to Section 8.04(a), the Issuer will cause to be distributed
the amount of Available Funds on a Payment Date. The Issuer will cause the
deposits received on Receivables to be deposited into the Collection Account
pursuant to the Trust Agreement for the benefit of the Noteholders. 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 or will cause the Administrator or the Indenture Trustee to maintain in
The City of New York, an office or agency where Notes may be surrendered for
registration of transfer or exchange, and where notices and demands to or upon
the Issuer in respect of the Notes and this Indenture may be served. The Issuer
hereby initially appoints the Indenture Trustee to serve as its agent for the
foregoing purposes. The Issuer will give prompt written notice to the Indenture
Trustee of the location, and of any change in the location, of any such office
or agency. If at any time the Issuer shall fail to maintain any such office or
agency or shall fail to furnish the Indenture Trustee with the address thereof,
such surrenders, notices and demands may be made or served at the Corporate
Trust Office, and the Issuer hereby appoints the Indenture Trustee as its agent
to receive all such surrenders, notices and demands.

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<PAGE>

         SECTION 3.03      Money for Payments to be Held in Trust.

         (a) As provided in Section 9.02 of the Trust Agreement, all payments of
amounts due and payable with respect to any Notes that are to be made from
amounts withdrawn from the Collection Account, the Spread Account and the
Payahead Account shall be made on behalf of the Issuer by the Indenture Trustee
or by another Paying Agent, and no amounts so withdrawn from the Collection
Account, the Spread Account and the Payahead Account for payments of Notes shall
be paid over to the Issuer except as provided in this Section.

         (b) The Notes shall be non-recourse obligations of the Issuer and shall
be limited in right of payment to amounts available from the Pledged Assets and
the Policy as provided in this Indenture and the Issuer shall not otherwise be
liable for payments on the Notes. No Person shall be personally liable for any
amounts payable under the Notes. If any other provision of this Indenture
conflicts or is deemed to conflict with the provisions of this paragraph, the
provisions of this paragraph shall control.

         (c) The Issuer will cause each Paying Agent other than the Indenture
Trustee to execute and deliver to the Indenture Trustee and the Insurer an
instrument in which such Paying Agent shall agree with the Indenture Trustee
(and if the Indenture 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;

                  (ii)     give the Indenture Trustee and the Insurer notice of
         any default 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 Indenture Trustee, or so long
         as it is the Controlling Party, the Insurer, forthwith pay to the
         Indenture Trustee all sums so held in trust by such Paying Agent;

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

         (d) The Issuer may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, by Issuer
Order direct any Paying Agent to pay to the Indenture Trustee all sums held in
trust by such paying Agent, such sums to be held by the Indenture Trustee upon
the same trusts as those upon which the sums were held by such

                                       22

<PAGE>

Paying Agent; and upon such payment by any Paying Agent to the Indenture
Trustee, such Paying Agent shall be released from all further liability with
respect to such sums.

         Subject to applicable laws with respect to escheat of funds, any money
held by the Indenture Trustee or any Paying Agent in trust for the payment of
any amount due with respect to any Note and remaining unclaimed for two years
after such amount has become due and payable shall be discharged from such trust
and be paid to the Issuer upon receipt of an Issuer Request with the prior
written consent of the Insurer (so long as the Insurer is the Controlling
Party), and the Holder of such Note shall thereafter, as an unsecured general
creditor, look only to the Issuer for payment thereof, and all liability of the
Indenture Trustee or such Paying Agent with respect to such trust money shall
thereupon cease; provided, however, that if such money or any portion thereof
had been previously deposited by the Insurer or the Indenture Trustee for the
payment of principal or interest on the Notes, to the extent any amounts are
owing to the Insurer in accordance with the terms of the Insurance Agreement,
such amounts shall be paid promptly to the Insurer upon the Indenture Trustee's
receipt of a written request by the Insurer to such effect; and provided,
further, that the Indenture Trustee or such Paying Agent, before being required
to make any such repayment, shall at the expense and direction of the Issuer
cause to be published once, in a newspaper published in the English language,
customarily published on each Business Day and of general circulation in The
City of New York, notice that such money remains unclaimed and that, after a
date specified therein, which shall not be less than 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 Indenture 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 monies due and
payable but not claimed is determinable from the records of the Indenture
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 United States, 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, and the Pledged Assets.

         SECTION 3.05      Protection of Trust Estate. The Issuer intends the
security interest Granted pursuant to this Indenture in favor of the Indenture
Trustee on behalf of the Noteholders to be prior to all other liens in respect
of the Pledged Assets, and the Issuer shall take all actions necessary to obtain
and maintain, for the benefit of the Indenture Trustee on behalf of the
Noteholders, a first lien on and a first priority, perfected security interest
in the Pledged Assets. 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
         Pledged Assets;

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<PAGE>

                  (ii)     maintain or preserve the lien and security interest
         (and the priority thereof) created by this Indenture in favor of the
         Indenture Trustee for the benefit of the Noteholders to the extent
         expressly set forth herein or the other Basic Documents and, to the
         extent expressly set forth herein and so long as it is the Controlling
         Party, the Insurer, 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 Pledged Assets;

                  (v)      preserve and defend title to the Pledged Assets and
         the rights of the Indenture Trustee, the Noteholders and, to the extent
         expressly set forth herein and so long as it is the Controlling Party,
         the Insurer, in such Pledged Assets against the claims of all persons
         and parties; or

                  (vi)     pay all taxes or assessments levied or assessed upon
         the Pledged Assets when due.

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

         SECTION 3.06      Opinions as to Pledged Assets.

         (a) Promptly after the execution and delivery of this Indenture, the
Issuer shall furnish to the Indenture Trustee and the Insurer 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 Indenture Trustee's first priority
perfected security interest in the Pledged Assets (subject to the rights of the
Insurer under the Insurance Agreement) 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.

         (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 Indenture Trustee and the Insurer 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 Indenture Trustee's first priority perfected security
interest in the Pledged Assets (subject to the rights of the Insurer under the
Insurance Agreement) 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.

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<PAGE>

         SECTION 3.07      Performance of Obligations; Servicing of Receivables.

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

         (b) The Issuer may contract with or otherwise obtain the assistance of
other Persons (including, without limitation, the Administrator under the
Administration Agreement) acceptable to the Insurer to assist it in performing
its duties and obligations under this Indenture, and any performance of such
duties by a Person identified to the Indenture Trustee and the Insurer in an
Officer's Certificate shall be deemed to be action taken by the Issuer. The
Indenture Trustee shall not be responsible for the action or inaction of the
Servicer or the Administrator. Initially, the Issuer has contracted with the
Servicer as 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 other Basic
Documents and in the instruments and agreements included in the Pledged Assets,
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 Trust Agreement in accordance with and within the time periods
provided for herein and therein. Except as otherwise expressly provided therein,
the Issuer shall not waive, amend, modify, supplement or terminate any Basic
Document or any provision thereof without the consent of the Indenture Trustee,
the Insurer (so long as the Insurer is the Controlling Party) and the Holders of
at least a majority of the Note Balances of the Notes.

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

         (e) Upon the resignation or termination of the Servicer pursuant to
Sections 12.05 or 13.01 of the Trust Agreement, the Indenture Trustee shall
appoint a successor servicer ("Successor Servicer") acceptable to the Insurer
pursuant to the Trust Agreement. If the Indenture Trustee shall succeed to the
Servicer's duties as servicer of the Receivables as provided in 13.02 of the
Trust Agreement, it shall do so in its individual capacity and not in its
capacity as Indenture Trustee and, accordingly, the provisions of Article VI
shall be inapplicable to the Indenture Trustee in its duties as the successor to
the Servicer and the servicing of the Receivables. In case the Indenture Trustee
shall become successor to the Servicer under the Trust Agreement, the Indenture
Trustee shall be entitled to appoint as Servicer one of its Affiliates, provided
that it shall not be liable for the actions and omissions of any such Affiliate
in such capacity as successor Servicer appointed with due care.

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<PAGE>

         (f) Upon any termination of the Servicer's rights and powers pursuant
to the Trust Agreement, the Issuer shall promptly notify the Indenture Trustee
and the Insurer. As soon as a Successor Servicer is appointed, the Issuer shall
notify the Indenture Trustee and the Insurer 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 or the Seller of their respective duties under the
Basic Documents: (i) without the prior consent of the Insurer (unless an Insurer
Default shall have occurred and be continuing) or (ii) if the effect thereof
would adversely affect the Noteholders.

         SECTION 3.08      Negative Covenants. Until the Termination Date, the
Issuer shall not:

                  (i)      except as expressly permitted by the Basic Documents,
         sell, transfer, exchange or otherwise dispose of any of the properties
         or assets of the Issuer, including those included in the Pledged
         Assets, unless directed to do so by the Indenture Trustee with the
         prior written consent of the Insurer (so long as the Insurer is the
         Controlling Party);

                  (ii)     claim any credit on, or make any deduction from the
         principal or interest payable in respect of, the Notes (other than
         amounts properly withheld from such payments under the Code or
         applicable state law) 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 Pledged Assets;

                  (iii)    (A) permit the validity or effectiveness of this
         Indenture to be impaired, or permit the lien 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 of this
         Indenture) to be created on or extend to or otherwise arise upon or
         burden the Pledged Assets 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
         Vehicle and arising solely as a result of an action or omission of the
         related Obligor), (C) permit the lien 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 Pledged Assets,
         or (D) amend, modify or fail to comply with the provisions of the Basic
         Documents, prior to the Termination Date, without the prior written
         consent of the Insurer, so long as the Insurer is the Controlling
         Party;

                  (iv)     engage in any business or activity other than as
         permitted by the Trust Agreement;

                  (v)      incur or assume any indebtedness or guarantee any
         indebtedness of any Person, except for such indebtedness incurred
         pursuant to Section 3.10; or

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<PAGE>

                  (vi)     dissolve or liquidate in whole or in part or merge or
         consolidate, with any other Person, other than in compliance with
         Section 3.10.

         SECTION 3.09      Annual Statement as to Compliance. The Issuer will
deliver to the Indenture Trustee, the Rating Agencies and the Insurer, on or
before __________ of each year, beginning on the first __________ that is at
least six months after the Closing Date, an Officer's Certificate dated as of
December 31 of the preceding year 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

                  (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
Conditions.

         (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 (A) be a Person organized
         and existing under the laws of the United States or any State, (B)
         shall expressly assume, by an indenture supplemental hereto, executed
         and delivered to the Indenture Trustee and the Insurer, in form and
         substance satisfactory to the Indenture Trustee and the Insurer (so
         long as it is the Controlling Party), 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 Basic Document on the part of the Issuer to be performed or
         observed, all as provided herein, and (C) 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 consolidation
         or merger, 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 consolidation or merger;

                  (iv)     the Issuer shall have received an Opinion of Counsel
         which shall be delivered to and shall be satisfactory to the Indenture
         Trustee and the Insurer (so long as the Insurer is the Controlling
         Party) to the effect that such consolidation or merger will not have
         any material adverse tax consequence to the Trust, the Insurer, any
         Noteholder or any Certificateholder;

                                       27

<PAGE>

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

                  (vi)     the Issuer shall have delivered to the Indenture
         Trustee and the Insurer (so long as the Insurer is the Controlling
         Party) an Officer's Certificate and an Opinion of Counsel (which shall
         describe the actions taken as required by clause (v) above 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 filings required by
         the Exchange Act); and

                  (vii)    so long as the Insurer is the Controlling Party, the
         Issuer shall have given the Insurer written notice of such
         consolidation or merger at least 20 Business Days prior to the
         consummation of such action and shall have received the prior written
         approval of the Insurer of such consolidation or merger and 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 conveyance or transfer.

         (b) The Issuer shall not conveyor transfer all or substantially all of
its properties or assets, including those included in the Pledged Assets, to any
Person (except as expressly permitted by the Basic Documents), 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 or any State, (B) expressly assume, by an indenture supplemental
         hereto, executed and delivered to the Indenture Trustee and the
         Insurer, in form and substance satisfactory to the Indenture Trustee
         and the Insurer (so long as the Insurer is the Controlling Party), 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 Basic 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 Noteholders, (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 conveyance or
         transference, 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 conveyance or transference;

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<PAGE>

                  (iv)     the Issuer shall have received an Opinion of Counsel
         which shall be delivered to and shall be satisfactory to the Indenture
         Trustee and the Insurer (so long as the Insurer is the Controlling
         Party) to the effect that such conveyance or transference will not have
         any material adverse tax consequence to the Trust, the Insurer, any
         Noteholder or any Certificateholder;

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

                  (vi)     the Issuer shall have delivered to the Indenture
         Trustee and the Insurer (so long as the Insurer is the Controlling
         Party) an Officer's Certificate and an Opinion of Counsel (which shall
         describe the actions taken as required by clause (v) above or that no
         such actions will be taken) each stating that such conveyance or
         transference and such supplemental indenture comply with this Article
         Three and that all conditions precedent herein provided for relating to
         such transaction have been complied with (including any filings
         required by the Exchange Act); and

                  (vii)    so long as the Insurer is the Controlling Party, the
         Issuer shall have given the Insurer written notice of such conveyance
         or transfer of properties or assets at least 20 Business Days prior to
         the consummation of such action and shall have received the prior
         written approval of the Insurer of such conveyance or transfer and the
         Person acquiring by conveyance or transference 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.

         SECTION 3.11      Successor 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 or substantially all the
assets or 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 Indenture Trustee and the Insurer
stating that the Issuer is to be so released.

         SECTION 3.12      No Other Business. The Issuer shall not engage in (i)
any business other than financing, purchasing, owning, selling and managing the
Receivables in the manner contemplated by this Indenture and the other Basic
Documents and activities incidental thereto or (ii) any other business or
activities as contemplated by Section 1.03 of the Trust Agreement.

         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, (ii) obligations owing from time to time
to the Insurer under the Insurance Agreement and the other Basic Documents, and
(iii) any other Indebtedness permitted by or

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arising under the Basic Documents. The proceeds of the Notes shall be used
exclusively to fund the Issuer's purchase of the Receivables and the other
assets specified in the Trust Agreement, to fund the required deposit in the
Spread Account, 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 comply with the Servicer's obligations under the Trust Agreement.

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

         SECTION 3.16      Capital Expenditures. 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
the Basic Documents, the Issuer shall not, directly or indirectly, (i) pay any
dividend or make any distribution (by reduction of capital or otherwise),
whether in cash, property, securities or a combination thereof, to the 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 purpose provided, however, that the
Issuer may make, or cause to be made, (A) distributions to the Servicer, the
Indenture Trustee, the Owner Trustee, the Insurer, the Noteholders and the
Certificateholders as contemplated by, and to the extent funds are available for
such purpose under, the Trust Agreement and (B) payments to the Indenture
Trustee and the Owner Trustee pursuant to the Administration Agreement. The
Issuer will not, directly or indirectly, make payments to or distributions from
the Collection Account except in accordance with this Indenture and the other
Basic Documents.

         SECTION 3.18      Notice of Events of Default. The Issuer agrees to
give the Indenture Trustee, the Insurer and each Rating Agency prompt written
notice of each Event of Default hereunder and each default on the part of the
Servicer or the Transferor of their respective obligations under the Trust
Agreement.

         SECTION 3.19      Further Instruments and Acts. Upon request of the
Indenture Trustee or the Insurer, 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 non-compliance with which would,
individually or in the

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<PAGE>

aggregate, materially and adversely affect the ability of the Issuer to perform
its obligations under the Notes, this Indenture or any other Basic Document.

         SECTION 3.21      Amendments of Trust Agreement. The Issuer shall not
agree to any amendment to Section 16.01 of the Trust Agreement to eliminate the
requirements thereunder that the Insurer (so long as it is the Controlling
Party) and/or the Noteholders consent to amendments thereto as provided therein.

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

         SECTION 4.01      Satisfaction and Discharge of Indenture. This
Indenture shall cease to be of further effect with respect to the Notes except
as to (i) rights of registration of transfer and exchange, (ii) substitution of
mutilated, destroyed, lost or stolen Notes, (iii) rights of Noteholders to
receive payments of principal thereof and interest thereon, (iv) Sections 3.03,
3.04, 3.05, 3.07, 3.08, 3.10, 3.11, 3.12, 3.20 and 3.21, (v) the rights,
obligations and immunities of the Indenture Trustee hereunder (including the
rights of the Indenture Trustee under Section 6.07 and the obligations of the
Indenture Trustee under Section 4.02), (vi) the rights of Noteholders as
beneficiaries hereof with respect to the property so deposited with the
Indenture Trustee payable to all or any of them and (vii) the obligation of the
Indenture Trustee to make claims under the Policy, which shall survive the Final
Maturity Date of the Notes and extend through any preference period applicable
with respect to the Notes or any payments made in respect of the Notes, and the
Indenture Trustee, on demand of and at the expense of the Issuer, shall execute
proper instruments acknowledging satisfaction and discharge of this Indenture
with respect to the Notes, when

                  (A)      either

                           (1)      all Notes theretofore authenticated and
                  delivered (other than (i) Notes that have been destroyed, lost
                  or stolen and that have been replaced or paid as provided in
                  Section 2.05 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 Indenture Trustee for cancellation and
                  the Policy has expired and been returned to the Insurer for
                  cancellation; or

                           (2)      all Notes not theretofore delivered to the
                  Indenture Trustee for cancellation

                                    (i)      have become due and payable,

                                    (ii)     will become due and payable at the
                           respective Final Maturity Date of the Notes within
                           one year, or

                                    (iii)    are to be called for redemption
                           within one year under arrangements satisfactory to
                           the Indenture Trustee for the giving of notice

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<PAGE>

                           of redemption by the Indenture Trustee in the name,
                           and at the expense, of the Issuer,

         and the Issuer, in the case of clauses (i), (ii) or (iii) above, has
         irrevocably deposited or caused to be irrevocably deposited with the
         Indenture Trustee cash or Eligible Investments for such purpose, in an
         amount sufficient to pay and discharge the entire indebtedness on such
         Notes not theretofore delivered to the Indenture Trustee for
         cancellation when due to the Final Maturity Date of the Class A-4 Notes
         and the Class B Notes or Redemption Date (if Notes shall have been
         called for redemption pursuant to Section 11.01), as the case may be;

                  (B)      the Issuer has paid or performed or caused to be paid
         or performed all amounts and obligations which the Issuer may owe to or
         on behalf of (1) the Indenture Trustee for the benefit of the
         Noteholders under this Indenture or the Notes and (2) the Insurer to
         the extent expressly set forth under this Indenture and the Basic
         Documents;

                  (C)      the Issuer has delivered to the Indenture Trustee and
         the Insurer an Officer's Certificate, an Opinion of Counsel and (if
         required by the TIA, the Indenture Trustee) an Independent Certificate
         from a firm of certified public accountants, each meeting the
         applicable requirements of Section 12.01(a) and, subject to Section
         12.02, 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; and

                  (D)      upon the satisfaction and discharge of the Indenture
         pursuant to this Section 4.01, the Indenture Trustee shall deliver to
         the Owner Trustee and the Insurer (so long as the Insurer is the
         Controlling Party) a certificate of a Responsible Officer stating (i)
         that the Insurer (based on a certificate delivered to the Indenture
         Trustee by the Issuer), Noteholders and the Indenture Trustee have been
         paid all amounts owed to them, and (ii) either (a) stating that to the
         actual knowledge of such Responsible Officer, no claims remain against
         the Issuer, or (b) stating that the only pending or threatened claims
         actually known to such Responsible Officer (including contingent and
         unliquidated claims) are those listed on a schedule to such
         certificate.

         SECTION 4.02      Application of Trust Money. All monies deposited with
the Indenture Trustee pursuant to Section 4.01 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
Indenture Trustee may determine, to the Holders of the particular Notes for the
payment or redemption of which such monies have been deposited with the
Indenture Trustee, of all sums due and to become due thereon for principal and
interest; but such monies need not be segregated from other funds except to the
extent required herein or in the Trust Agreement or required by law.

         SECTION 4.03      Repayment of Monies Held by Paying Agent. In
connection with the satisfaction and discharge of this Indenture with respect to
the Notes, all monies then held by and Paying Agent other than the Indenture
Trustee under the provisions of this Indenture with respect to such Notes shall,
upon demand of the Issuer, be paid to the Indenture Trustee to be

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<PAGE>

held and applied according to Section 3.03 and thereupon such Paying Agent shall
be released from all further liability with respect to such monies.

                                   ARTICLE V

                           EVENTS OF DEFAULT; REMEDIES

         SECTION 5.01      Events of Default.

         (a) "Event of Default," wherever used herein, means anyone 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 after notice thereof is given to the Issuer,
         the Insurer and the Servicer (solely for purposes of this clause, a
         payment on the Notes funded by the Insurer or from the Spread Account
         shall be deemed to be a payment made by the Issuer);

                  (ii)     default in the payment of any principal of or any
         installment of the principal of a Class of Notes on the Final Maturity
         Date for such Class of Notes and such default shall continue for a
         period of five days after notice thereof is given to the Issuer, the
         Insurer and the Servicer (solely for purposes of this clause, a payment
         on the Notes funded by the Insurer from the Spread Account shall be
         deemed to be a payment made by the Issuer);

                  (iii)    (A) 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), and such
         default shall continue or not be cured for a period of 90 days after
         notice thereof shall have been given, by registered or certified mail,
         to the Issuer by the Indenture Trustee or the Insurer or to the Issuer
         and the Indenture Trustee by the Holders of at least 25% of the Note
         Balances, acting together as a single class or (B) any representation
         or warranty made by the Issuer in this Indenture or in any certificate
         delivered pursuant hereto or in connection herewith having been
         incorrect in a material respect as of the time made, and such breach
         not having been cured within 30 days after notice thereof is given to
         the Issuer by the Indenture Trustee or the Insurer, or to the Issuer
         and the Indenture Trustee by the holders of at least 25% of the Note
         Balances of the Notes acting together as a single class;

                  (iv)     the filing of a decree or order for relief by a court
         having jurisdiction in the premises in respect of the Issuer or any
         substantial part of the Pledged Assets in an involuntary case under any
         applicable federal or state bankruptcy, insolvency or other similar law
         now or hereafter in effect, or appointing a receiver, liquidator,
         assignee, custodian, trustee, sequestrator or similar official of the
         Issuer or for any substantial part of the Pledged Assets, or ordering
         the winding-up or liquidation of the Issuer's affairs,

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<PAGE>

         and such decree or order shall remain unstayed and in effect for a
         period of 60 consecutive days; or

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

                  (vi)     the Issuer becoming taxable as an association (or
         publicly traded partnership) taxable as a corporation for federal or
         state income tax purposes; or

                  (vii)    the Issuer or the Transferor being treated as an
         investment company pursuant to the Investment Company Act of 1940, as
         amended.

         (b) The Issuer shall deliver to the Indenture Trustee, the Rating
Agencies and the Insurer (so long as the Insurer is the Controlling Party),
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 or the lapse of time would become an Event of Default, 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) So long as the Insurer is the Controlling Party, if an Event of
Default shall have occurred and is continuing, then the Insurer (and only the
Insurer) shall have the right, but not the obligation, upon prior written notice
to each Rating Agency, to declare by written notice to the Issuer, the Servicer
and the Indenture Trustee that the Notes become immediately due and payable, and
upon any such declaration the unpaid principal amount of the Notes, together
with accrued and unpaid interest thereon, shall become immediately due and
payable. The Indenture Trustee will have no discretion with respect to the
acceleration of the Notes under the foregoing circumstances. In the event of any
such acceleration of the Notes, the Indenture Trustee shall continue to make
claims under the Policy with respect to the Notes.

         (b) If the Insurer is no longer the Controlling Party, and an Event of
Default shall have occurred and be continuing, the Indenture Trustee shall, if
so requested in writing by the Majority Noteholders, upon prior written notice
to each Rating Agency, declare that the Notes become immediately due and
payable, and upon any such declaration the unpaid principal amount of the Notes,
together with accrued and unpaid interest thereon, shall become immediately due
and payable.

         (c) In the event any Notes are accelerated due to an Event of Default,
the Insurer shall have the right (in addition to its obligation to pay Scheduled
Payments on the Notes in accordance with the Policy), but not the obligation, to
make payments under the Policy or

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<PAGE>

otherwise of interest and principal due on such Notes, in whole or in part, on
any date or dates following such acceleration as the Insurer, in its sole
discretion, shall elect.

         (d) At any time after declaration of acceleration of maturity has been
made and before a judgment or decree for payment of the money due has been
obtained by the Indenture Trustee as hereinafter in this Article V provided, the
Insurer, so long as it is the Controlling Party, and otherwise, the Majority
Noteholders, by written notice to the Issuer and the Indenture Trustee, may
rescind and annul such declaration and its consequences if:

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

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

                           (B)      All sums paid or advanced by the Indenture
                  Trustee hereunder and the reasonable compensation, expenses
                  and disbursements of the Indenture Trustee and its agents and
                  counsel, which funds shall be deposited into the Collection
                  Account; and

                           (C)      all sums paid or advanced by or due to the
                  Insurer and any unpaid Insurance Premium, which funds shall be
                  paid to the Insurer; and

                  (ii)     all Events of Default, other than the nonpayment of
         the interest on or the principal of the Notes that has become due
         solely by such acceleration, have been cured or waived as provided in
         Section 5.13.

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

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

         (a) The Issuer covenants that, if the Notes are accelerated following
the occurrence of an Event of Default, the Issuer will, upon demand of the
Indenture Trustee, pay to the Indenture Trustee, for the benefit of the
Noteholders, the whole amount then due and payable on such Notes for principal
and interest, with interest upon the overdue principal, and, to the extent
payment at such rate of interest shall be legally enforceable, upon overdue
installments of interest, at the applicable interest rates and in addition
thereto such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses and
disbursements of the Indenture Trustee and its agents and counsel.

         (b) If an Event of Default shall have occurred and be continuing, the
Indenture Trustee shall (i) if the Insurer is the Controlling Party, at the
direction of the Insurer, or (ii) if the Insurer is not the Controlling Party,
at the direction of the Majority Noteholders, as more particularly provided in
Section 5.04, proceed to protect and enforce the rights of the Noteholders, by
such

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<PAGE>

appropriate Proceedings as the Indenture Trustee shall deem most effective to
protect and enforce any such rights, whether for the specific enforcement of any
covenant or agreement in this Indenture or in aid of the exercise of any power
granted herein, or to enforce any other proper remedy or legal or equitable
right vested in the Indenture Trustee by this Indenture or by law.

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

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

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

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

                  (iv)     to file such proofs of claim and other papers or
         documents as may be necessary or advisable in order to have the claims
         of the Indenture Trustee or the Noteholders allowed in any judicial
         proceedings relative to the Issuer, its creditors and its property; and
         any trustee, receiver, liquidator, custodian or other similar official
         in any such Proceeding is hereby authorized by each of such Noteholders
         to make payments to the Indenture Trustee, and, in the event that the
         Indenture Trustee shall consent to the making of payments directly to
         such Noteholders, to pay to the Indenture Trustee such amounts as shall
         be sufficient to cover reasonable compensation to the Indenture
         Trustee, each predecessor Indenture Trustee and their respective
         agents, attorneys and counsel, and all other expenses and liabilities
         incurred by the Indenture Trustee and each predecessor Indenture
         Trustee except as a result of negligence or bad faith.

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<PAGE>

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

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

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

         SECTION 5.04      Remedies.

         (a) If (i) an Event of Default shall have occurred and be continuing
and the Notes have been declared due and payable under Section 5.2, the
Indenture Trustee shall (subject to Section 5.04(b) below and Section 5.05), if
the Insurer is the Controlling Party, at the direction of the Insurer, or (ii)
if an Event of Default shall have occurred and be continuing and the Notes have
been declared due and payable under Section 5.2, the Indenture Trustee shall
(subject to Section 5.04(b) below and Section 5.05), if an Insurer Default shall
have occurred and be continuing, at the direction of the Majority Noteholders,
take one or more of the following actions as so directed:

                  (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 or any other
         Basic Document with respect thereto, whether by declaration or
         otherwise, enforce any judgment obtained, and collect from the Issuer
         and any other obligor upon such Notes monies adjudged due;

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

                  (iii)    exercise any remedies of a secured party under the
         UCC and any other remedy available to the Indenture Trustee and take
         any other appropriate action to protect and enforce the rights and
         remedies of the Indenture Trustee on behalf of the Noteholders under
         this Indenture or the Notes;

                  (iv)     sell or cause the Servicer to otherwise liquidate the
         Pledged Assets or any portion thereof or rights or interests therein,
         at one or more public or private sales called and conducted in any
         manner permitted by law and deliver the proceeds of such sale or

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<PAGE>

         liquidation to the Indenture Trustee for distribution in accordance
         with the terms of this Indenture; and

                  (v)      maintain possession of the Pledged Assets

         (b) Notwithstanding the foregoing,

                  (i)      in the event that the Indenture Trustee is acting at
         the direction of the Insurer, so long as the Insurer is the Controlling
         Party, if an Event of Default specified in Section 5.01(a)(i), (ii),
         (iii), (vi) or (vii) shall have occurred and be continuing, the Insurer
         shall not have the right to cause the Indenture Trustee or the Servicer
         to, and neither the Indenture Trustee nor the Servicer shall, liquidate
         the Pledged Assets in whole or in part if the proceeds of such sale or
         liquidation would not be sufficient to pay all outstanding principal of
         and accrued interest on the Notes; and

                  (ii)     in the event that the Indenture Trustee is acting at
         the direction of the Majority Noteholders (so long as an Insurer
         Default shall have occurred and be continuing or the Insurance
         Agreement has terminated), the Noteholders shall not have the right to
         direct the Indenture Trustee or the Servicer to, and neither the
         Indenture Trustee nor the Servicer shall, liquidate the Pledged Assets
         in whole or in part unless an Event of Default as specified in Section
         5.01(a)(iv) or (v) shall have occurred and be continuing.

         (c) In determining the sufficiency or insufficiency of the proceeds of
a sale or liquidation of the Pledged Assets to pay all amounts required pursuant
to Section 5.04(b)(i) above, the Indenture Trustee may, but need not, at the
sole expense of the Issuer 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 Pledged
Assets for such purpose.

         SECTION 5.05      Optional Preservation of the Receivables. If the
Notes have been declared to be due and payable under Section 5.02 following an
Event of Default and such declaration and its consequences have not been
rescinded and annulled, the Indenture Trustee shall, absent direction to the
contrary from the Insurer or the Noteholders pursuant to Section 5.04, maintain
possession of the Pledged Assets.

         SECTION 5.06      Priorities.

                  (i)      If the Notes have been declared to be due and payable
         under Section 5.02 following an Indenture Event of Default and such
         declaration and its consequences have not been rescinded and annulled,
         any money collected by the Indenture Trustee with respect to the
         Pledged Assets, the Notes or the Certificates pursuant to this Article
         or otherwise and any money that may then be held or thereafter received
         by the Indenture Trustee with respect to the Pledged Assets, the Notes
         or the Certificates (excluding any payments made under the Policy),
         shall be applied pursuant to Section 8.04(g).

                  (ii)     The Indenture Trustee may fix a record date and
         payment date for any payment to Noteholders pursuant to this Section.
         At least 15 days before such record

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<PAGE>

         date, the Issuer shall mail to each Noteholder and the Indenture
         Trustee a notice that states the record date, the payment date and the
         amount to be paid.

         SECTION 5.07      Limitation of Suits.

         (a) 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 Indenture Trustee of a continuing Event of Default;

                  (ii)     the Holders of not less than 25% of the Note Balances
         of the Notes have made written request to the Indenture Trustee to
         institute such Proceeding in respect of such Event of Default in its
         own name as Indenture Trustee hereunder;

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

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

                  (v)      no direction inconsistent with such written request
         shall have been given to the Indenture Trustee during such 60-day
         period by the Holders of a majority of the Note Balances of the Notes,
         voting together as a single class; and

                  (vi)     an Insurer Default shall have occurred and be
         continuing or the Insurance Agreement has been terminated.

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

         (b) In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Noteholders, each
representing less than a majority of the Note Balances of the Notes, the
Indenture Trustee in its sole discretion may determine that action, if any,
shall be taken, notwithstanding any other provisions of this Indenture and any
such action shall be binding on all parties.

         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 payments of Monthly Interest and Monthly Principal 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

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<PAGE>

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

         SECTION 5.09      Restoration of Rights and Remedies. If the Indenture
Trustee, the Insurer or any Noteholder has instituted any Proceeding to enforce
any right or remedy under this Indenture and such Proceeding has been
discontinued or abandoned for any reason or has been determined adversely to the
Indenture Trustee, the Insurer or to such Noteholder, then and in every such
case the Issuer, the Indenture Trustee, the Insurer and the Noteholders shall,
subject to any determination in such Proceeding, be restored severally and
respectively to their former positions hereunder, and thereafter all rights and
remedies of the Indenture Trustee and the Noteholders shall continue as though
no such Proceeding had been instituted.

         SECTION 5.10      Rights and Remedies Cumulative. No right or remedy
herein conferred upon or reserved to the Indenture Trustee, the Insurer or to
the Noteholders is intended to be exclusive of any other right or remedy, and
every right and remedy shall, to the extent permitted by law, be cumulative and
in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

         SECTION 5.11      Delay or Omission Not a Waiver. No delay or omission
of the Indenture Trustee, the Insurer or any Holder of any Note to exercise any
right or remedy accruing upon any Default or Event of Default shall impair any
such right or remedy or constitute a waiver of any such Default or Event of
Default or an acquiescence therein. Every right and remedy given by this Article
Five or by law to the Indenture Trustee, the Insurer or to the Noteholders may
be exercised from time to time, and as often as may be deemed expedient, by the
Indenture Trustee, the Insurer or by the Noteholders, as the case may be.

         SECTION 5.12      Control by Controlling Party. The Insurer, if the
Insurer is the Controlling Party, and otherwise the Indenture Trustee at the
direction of the Majority Noteholders shall have the right to direct the time,
method and place of conducting any Proceeding for any remedy available to the
Indenture Trustee with respect to the Notes or exercising any trust or power
conferred on the Indenture Trustee; provided that:

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

                  (ii)     any direction to the Indenture Trustee to sell or
         liquidate the Pledged Assets shall be subject to the terms of Section
         5.04; and

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

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

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         SECTION 5.13      Waiver of Past Defaults.

         (a) Prior to the declaration of the acceleration of the maturity of the
Notes as provided in Section 5.02, the Insurer so long as it is the Controlling
Party and otherwise the Indenture Trustee, at the direction of Holders holding
in the aggregate more than 50% of the outstanding Note Balance, may waive any
past Default or Event of Default and its consequences except a Default (a) in
the payment of principal of or interest on any of the Notes or (b) in respect of
a covenant or provision hereof that cannot be modified or amended without the
consent of the Holder of each Note, as applicable. In the case of any such
waiver, the Issuer, the Indenture Trustee, the Insurer and the Noteholders shall
be restored to their former positions and rights hereunder, respectively; but no
such waiver shall extend to any subsequent or other Default or impair any right
consequent thereto.

         (b) 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 Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to (i) any suit instituted by the
Indenture Trustee, (ii) any suit instituted by any Noteholder, or group of
Noteholders, in each case holding in the aggregate more than 10% of the Note
Balances of the Notes or (iii) 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 and 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 Indenture 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 Indenture Trustee's right to
seek and recover judgment on the Notes or under this Indenture shall not be
affected by the seeking, obtaining or application of any other relief under or
with respect to this Indenture. Neither the lien of this Indenture nor any
rights or remedies of the Indenture Trustee or the Noteholders shall

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be impaired by the recovery of any judgment by the Indenture Trustee against the
Issuer or by the levy of any execution under such judgment upon any portion of
the Pledged Assets or upon any of the assets of the Issuer. Any money or
property collected by the Indenture Trustee shall be applied in accordance with
Section 5.06.

         SECTION 5.17      Performance and Enforcement of Certain Obligations.

         (a) Promptly following a request from the Indenture Trustee or, so long
as it is the Controlling Party, the Insurer, to do so and at the Administrator's
expense, the Issuer shall take all such lawful action as the Indenture Trustee
may request to compel or secure the performance and observance by the Transferor
and the Servicer as applicable, of each of their obligations to the Issuer under
or in connection with the Trust 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 Trust Agreement to the
extent and in the manner directed by the Indenture Trustee or, so long as it is
the Controlling Party, the Insurer, including the transmission of notices of
default on the part of the Transferor or the Servicer thereunder and the
institution of legal or administrative actions or proceedings to compel or
secure performance by the Transferor or the Servicer of each of their
obligations under the Trust Agreement.

         (b) If the Indenture Trustee is the Controlling Party and if an Event
of Default has occurred and is continuing, the Indenture Trustee may, and at the
direction (which direction shall be given in writing and may include a
facsimile) of the Majority Noteholders shall, exercise all rights, remedies,
powers, privileges and claims of the Issuer against the Transferor or the
Servicer under or in connection with the Trust Agreement, including the right or
power to take any action to compel or secure performance or observance by the
Transferor 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 Trust Agreement, and any right of the Issuer to take such
action shall be suspended.

                                   ARTICLE VI

                              THE INDENTURE TRUSTEE

         SECTION 6.01      Duties of Indenture Trustee.

         (a) If an Event of Default has occurred and is continuing, and of which
the Indenture Trustee shall have actual knowledge, the Indenture Trustee shall
exercise the rights and powers vested in it by this Indenture and 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;
provided, however, that if the Indenture Trustee shall assume the duties of the
Servicer pursuant to Section 3.07(e), the Indenture Trustee in performing such
duties shall use the degree of care and skill customarily exercised by a prudent
institutional servicer with respect to automobile retail installment sales
contracts that it services for itself or others.

         (b) Except during the continuance of an Event of Default of which a
Responsible Officer of the Indenture Trustee shall have actual knowledge or
written notice:

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                  (i)      the Indenture Trustee undertakes to perform such
         duties and only such duties as are specifically set forth in this
         Indenture and no implied covenants or obligations shall be read into
         this Indenture against the Indenture Trustee; and

                  (ii)     in the absence of bad faith on its part, the
         Indenture Trustee may conclusively rely, as to the truth of the
         statements and the correctness of the opinions expressed therein, upon
         certificates or opinions furnished to the Indenture Trustee and
         conforming to the requirements of this Indenture; however, the
         Indenture Trustee shall examine the certificates and opinions to
         determine whether or not they conform to the requirements of this
         Indenture and the other Basic Documents to which the Indenture Trustee
         is a party; provided, however, that the Indenture Trustee shall not be
         responsible for the accuracy or content of any of the aforementioned
         documents and the Indenture Trustee shall have no obligation to verify,
         re-compute or recalculate any numerical information provided to it
         pursuant to the Basic Documents.

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

                  (i)      This paragraph does not limit the effect of Section
         6.01(b);

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

                  (iii)    the Indenture 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
Indenture Trustee is subject to paragraphs (a), (b) and (c) of this Section.

         (e) The Indenture Trustee shall not be liable for interest on any money
received by it.

         (f) Money held in trust by the Indenture Trustee need not be segregated
from other funds except to the extent required by law or the terms of this
Indenture or the Trust Agreement.

         (g) No provision of this Indenture shall require the Indenture Trustee
to expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties hereunder or in the exercise of any of its
rights or powers, if it shall have reasonable grounds to believe that 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 Indenture Trustee
shall be subject to the provisions of this Section and to the provisions of the
TIA.

         (i) The Indenture Trustee shall, and hereby agrees that it will (i)
perform all of the obligations and duties required of it under the Trust
Agreement and (ii) hold the Policy in trust,

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and will hold any proceeds of any claim on the Policy in trust solely for
application as provided in the Trust Agreement.

         (j) Except as otherwise required or permitted by the TIA, nothing
contained herein shall be deemed to authorize the Indenture Trustee to engage in
any business operations or any activities other than those set forth in this
Indenture. Specifically, the Indenture Trustee shall have no authority to engage
in any business operations, acquire any assets other than those specifically
included in the Pledged Assets under this Indenture or otherwise vary the assets
held by the Trust. Similarly, the Indenture Trustee shall have no discretionary
duties other than performing those ministerial acts set forth above necessary to
accomplish the purpose of this Trust as set forth in this Indenture.

         (k) The Indenture Trustee shall not be liable in its individual
capacity with respect to any action taken, suffered or omitted to be taken by it
in good faith in accordance with this Indenture or at the direction of the
Majority Noteholders, relating to the time, method and place of conducting any
proceeding for any remedy available to the Indenture Trustee, or exercising or
omitting to exercise any trust or power conferred upon the Indenture Trustee,
under this Indenture.

         (l) The Indenture Trustee shall not be required to take notice or be
deemed to have notice or knowledge of any Default or Event of Default unless a
Responsible Officer of the Indenture Trustee shall have received written notice
thereof. In the absence of receipt of such notice, the Indenture Trustee may
conclusively assume that there is no Default or Event of Default.

         (m) Subject to the other provisions of this Indenture, the Indenture
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 or
continuation statement evidencing a security interest, or to see to the
maintenance of any such recording or filing or depositing or to any rerecording,
refiling or redepositing of any thereof, (ii) to see to any 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 Pledged Assets, or (iv) to confirm or verify the
contents of any reports or certificates delivered to the Indenture Trustee
pursuant to this Indenture believed by the Indenture Trustee to be genuine and
to have been signed or presented by the proper party or parties.

         (n) Anything in this Indenture to the contrary notwithstanding, in no
event shall the Indenture Trustee be liable for special, indirect or
consequential loss or damage of any kind whatsoever (including but not limited
to lost profits), even if the Indenture Trustee has been advised of the
likelihood of such loss or damage regardless of the form of action.

         SECTION 6.02      Rights of Indenture Trustee.

         (a) Except as otherwise provided in the second succeeding sentence, the
Indenture Trustee may conclusively rely and shall be protected in acting upon or
refraining from acting upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, note, direction, demand,
election or other paper or document believed by it to be genuine and to have
been signed or presented by the proper person. The Indenture Trustee need not

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<PAGE>

investigate any fact or matter stated in the document. Notwithstanding the
foregoing, the Indenture Trustee, subject to Section 6.01(b) (ii) upon receipt
of all resolutions, certificates, statements, opinions, reports, documents,
orders or other instruments furnished to the Indenture Trustee that shall be
specifically required to be furnished pursuant to any provision of this
Indenture, shall examine them to determine whether they comply as to form to the
requirements of this Indenture.

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

         (c) The Indenture 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 Indenture Trustee shall
not be responsible for any misconduct or negligence on the part of any such
agent, attorney, custodian or nominee appointed by the Indenture Trustee with
due care.

         (d) The Indenture Trustee shall not be liable for any action it takes
or omits to take in good faith which it believes to be authorized or within its
rights or powers; provided, however, that the Indenture Trustee's conduct does
not constitute willful misconduct, negligence or bad faith.

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

         (f) Subject to Section 6.01(a), the Indenture Trustee shall be under no
obligation to exercise any of the trusts or powers vested in it by this
Indenture or to institute, conduct or defend any litigation hereunder or in
relation hereto at the request, order or direction of any of the Noteholders,
pursuant to the provisions of this Indenture, unless such Noteholders shall have
offered to the Indenture Trustee reasonable security or indemnity against the
costs, expenses and liabilities which may be incurred therein or thereby;
nothing contained herein shall, however, relieve the Indenture Trustee of the
obligation, during the continuance of an Event of Default of which a Responsible
Officer of the Indenture Trustee shall have actual knowledge, to exercise such
of the rights and powers vested in it by this Indenture, and to use the same
degree of care and skill in their exercise, as a prudent person would exercise
or use under the circumstances in the conduct of such person's own affairs.

         (g) The Indenture 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 Majority
Noteholders or the Insurer; provided, however, that if the payment within a
reasonable time to the Indenture 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 Indenture Trustee, not reasonably assured to the Indenture
Trustee by the security afforded to it by the terms of this

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<PAGE>

Agreement, the Indenture Trustee may require reasonable indemnity against such
cost, expense or liability as a condition to taking any such action.

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

         SECTION 6.03      Individual Rights of Indenture Trustee. The Indenture
Trustee in its individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Issuer or its Affiliates with the same
rights it would have if it were not Indenture Trustee. Any Paying Agent, Note
Registrar, co-registrar or co-paying agent may do the same with like rights.
However, the Indenture Trustee is required to comply with Sections 6.11 and
6.12.

         SECTION 6.04      Indenture Trustee's Disclaimer. The Indenture Trustee
shall not be responsible for and makes no representation as to the validity or
adequacy of this Indenture, the Pledged Assets 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 this Indenture or in any
document issued in connection with the sale of the Notes or in the Notes other
than the Indenture Trustee's certificate of authentication.

         SECTION 6.05      Notice of Defaults. If a Default occurs and is
continuing and a Responsible Officer of the Indenture Trustee has actual
knowledge or has received written notice thereof, the Indenture Trustee shall
mail to each Noteholder and the Insurer notice of the Default within 5 days
after it occurs.

         SECTION 6.06      Reports by Indenture Trustee to Holders. The
Indenture 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 cause
the Servicer to pay to the Indenture Trustee from time to time reasonable
compensation for its services. The Indenture Trustee's compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Issuer
shall cause the Servicer to reimburse the Indenture Trustee for all reasonable
out-of-pocket expenses incurred or made by it, including costs of collection, in
addition to the compensation for its services. Such expenses shall include the
reasonable compensation and expenses and disbursements and advances of the
Indenture Trustee's agents, counsel, accountants and experts. The Issuer shall,
or shall cause the Administrator to, indemnify the Indenture 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 Indenture Trustee shall notify the Issuer and the
Administrator promptly of any claim for which it may seek indemnity. Failure by
the Indenture Trustee to so notify the Issuer and the Administrator shall not
relieve the Issuer or the Administrator of its obligations hereunder. The Issuer
shall, or shall cause the Administrator to, defend any such claim, and the
Indenture 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 nor the Administrator need reimburse any expense or indemnify against any
loss, liability or

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<PAGE>

expense incurred by the Indenture Trustee through the Indenture Trustee's own
willful misconduct, negligence or bad faith.

         The Issuer's obligations to the Indenture Trustee pursuant to this
Section shall survive the resignation or removal of the Indenture Trustee and
the discharge of this Indenture. When the Indenture Trustee incurs expenses
after the occurrence of a Default specified in Section 5.01(a)(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 Indenture Trustee.

         (a) The Indenture Trustee may resign at any time by so notifying the
Issuer, the Servicer and the Insurer. The Issuer, may, with the consent of the
Insurer (unless an Insurer Default shall have occurred and be continuing), and,
at the request of the Insurer shall, remove the Indenture Trustee, if:

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

                  (ii)     a court having jurisdiction in the premises in
         respect of the Indenture 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 Indenture Trustee or for any substantial part of the Indenture
         Trustee's property, or ordering the winding-up or liquidation of the
         Indenture Trustee's affairs, provided any such decree or order shall
         have continued unstayed and in effect for a period of 30 consecutive
         days;

                  (iii)    the Indenture 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 Indenture Trustee or for any substantial part
         of the Indenture 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

                  (iv)     the Indenture Trustee otherwise becomes incapable of
         acting.

         (b) The Insurer, so long as it is the Controlling Party, may remove the
Indenture Trustee for any reason upon 30 days' written notice.

         (c) If the Indenture Trustee resigns or is removed or if a vacancy
exists in the office of Indenture Trustee for any reason (the Indenture Trustee
in such event being referred to herein as the retiring Indenture Trustee), the
Issuer shall promptly appoint a successor Indenture Trustee acceptable to the
Insurer (so long as the Insurer is the Controlling Party).

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<PAGE>

         (d) A successor Indenture Trustee shall deliver a written acceptance of
its appointment to the retiring Indenture Trustee and to the Issuer. Thereupon
the resignation or removal of the retiring Indenture Trustee shall become
effective, and the successor Indenture Trustee shall have all the rights, powers
and duties of the Indenture Trustee under this Indenture. The Issuer or the
successor Indenture Trustee shall mail a notice of its succession to
Noteholders, the Insurer and the Rating Agencies. The retiring Indenture Trustee
shall promptly transfer all property held by it as Indenture Trustee to the
successor Indenture Trustee.

         (e) If a successor Indenture Trustee does not take office within 30
days after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee, the Issuer or the Majority Noteholders may petition any court
of competent jurisdiction for the appointment of a successor Indenture Trustee.

         (f) If the Indenture Trustee fails to comply with Section 6.11, any
Noteholder may petition any court of competent jurisdiction for the removal of
the Indenture Trustee and the appointment of a successor Indenture Trustee.

         (g) Any resignation or removal of the Indenture Trustee and appointment
of a successor Indenture Trustee pursuant to the provisions of this Section
shall not become effective until acceptance of appointment by the successor
Indenture Trustee pursuant to this Section and payment of all fees and expenses
owed to the outgoing Indenture Trustee. Notwithstanding the replacement of the
Indenture Trustee pursuant to this Section, the retiring Indenture 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 Indenture Trustee by Merger.

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

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

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<PAGE>

         SECTION 6.10      Appointment of Co-Indenture Trustee or Separate
Indenture Trustee.

         (a) Notwithstanding any other provision of this Indenture, at any time,
for the purpose of meeting any legal requirement of any jurisdiction in which
any part of the Pledged Assets may at the time be located, the Indenture Trustee
shall have the power and may execute and deliver all instruments to appoint one
or more Persons to act as a co-trustee or co-trustees, jointly with the
Indenture Trustee, 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 Pledged Assets, or any part
hereof, and, subject to the other provisions of this Section, such powers,
duties, obligations, rights and trusts as the Indenture Trustee may consider
necessary or desirable. No co-trustee or separate trustee hereunder shall be
required to meet the terms of eligibility as a successor Indenture 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.

         (b) Every separate trustee and co-trustee shall, to the extent
permitted by law, be appointed and act subject to the following provisions and
conditions:

                  (i)      all rights, powers, duties and obligations conferred
         or imposed upon the Indenture Trustee shall be conferred or imposed
         upon and exercised or performed by the Indenture Trustee and such
         separate trustee or co-trustee jointly (it being understood that such
         separate trustee or co-trustee is not authorized to act separately
         without the Indenture Trustee joining in such act), except to the
         extent that under any law of any jurisdiction in which any particular
         act or acts are to be performed the Indenture Trustee shall be
         incompetent or unqualified to perform such act or acts, in which event
         such rights, powers, duties and obligations (including the holding of
         title to the Trust or any portion thereof in any such jurisdiction)
         shall be exercised and performed singly by such separate trustee or
         co-trustee, but solely at the direction of the Indenture Trustee;

                  (ii)     no trustee hereunder shall be personally liable by
         reason of any act or omission of any other trustee hereunder; and

                  (iii)    the Indenture Trustee may at any time accept the
         resignation of or remove any separate trustee or co-trustee.

         (c) Any notice, request or other writing given to the Indenture Trustee
shall be deemed to have been given to each of the then separate trustees and
co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Indenture and
the conditions of this Article. 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 co-appointment, either jointly with the Indenture
Trustee or separately, as may be provided therein, subject to all the provisions
of this Indenture, specifically including every provision relating to the
conduct of, affecting the liability of, or affording protection to, the
Indenture Trustee. Every such instrument shall be filed with the Indenture
Trustee.

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         (d) Any separate trustee or co-trustee may at any time constitute the
Indenture Trustee, its agent or attorney-in-fact with full power and authority,
to the extent not prohibited by law, to do any lawful act under or in respect of
this Indenture on its behalf and in its name. If any separate trustee or
co-trustee shall die, become incapable of acting, resign or be removed, all of
its estates, properties, rights, remedies and trusts shall vest in and be
exercised by the Indenture Trustee, to the extent permitted by law, without the
appointment of a new or successor trustee. Notwithstanding anything to the
contrary in this Indenture, the appointment of any separate trustee or
co-trustee shall not relieve the Indenture Trustee of its obligations and duties
under this Indenture.

         SECTION 6.11      Eligibility. The Indenture Trustee shall at all times
satisfy the requirements of TIA Section 310(a). The Indenture Trustee hereunder
shall at all times be a financial institution organized and doing business under
the laws of the United States of America or any state, authorized under such
laws to exercise corporate trust powers, whose long term unsecured debt is rated
at least _____ by __________ and _____ by __________ and shall have a combined
capital and surplus of at least $50,000,000 or shall be a member of a bank
holding system to the aggregate combined capital and surplus of which is
$50,000,000 and subject to supervision or examination by federal or state
authority, provided that the Trustee's separate capital and surplus shall at all
times be at least the amount required by Section 310(a) (2) of the TIA. If such
Person publishes reports of condition at least annually, pursuant to law or to
the requirements of a supervising or examining authority, then for the purposes
of this Section 6.11, the combined capital and surplus of such Person shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. In case at any time the Indenture Trustee
shall cease to be eligible in accordance with the provisions of this Section
6.11, the Indenture Trustee shall resign immediately in the manner and with the
effect specified in Section 6.08. The Indenture Trustee shall comply with TIA
Section 310(b); provided, however, that there shall be excluded from the
operation of TIA Section 310(b) (1) any indenture or indentures under which
other securities of the Issuer are outstanding if the requirements for such
exclusion set forth in TIA Sections 310(b) (1) are met.

         SECTION 6.12      Preferential Collection of Claims Against Issuer. The
Indenture Trustee shall comply with TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). An Indenture Trustee who has resigned
or been removed shall be subject to Section 311(a) to the extent indicated.

         SECTION 6.13      Representations and Warranties of Indenture Trustee.
The Indenture Trustee hereby makes the following representations and warranties
on which the Issuer and Noteholders shall rely:

         (a) the Indenture Trustee is a corporation duly organized, validly
existing and in good standing under the laws of its place of incorporation;

         (b) the Indenture Trustee has full power, authority and legal right to
execute, deliver, and perform this Indenture and shall have taken all necessary
action to authorize the execution, delivery and performance by it of this
Indenture;

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         (c) this Indenture shall have been duly executed and delivered by the
Indenture Trustee; and

         (d) This Indenture is a legal, valid and binding obligation of the
Indenture Trustee enforceable in accordance with its terms, subject to the
effects of bankruptcy, insolvency, reorganization, or other similar laws
affecting the enforcement of creditors' rights generally and to general
principles of equity.

         SECTION 6.14      Disqualification of the Indenture Trustee. If the
Indenture Trustee has or shall acquire a conflicting interest within the meaning
of the TIA, as amended, the Indenture Trustee shall either eliminate such
interest or resign, to the extent and in the manner provided by and subject to,
the provisions of this Indenture.

         SECTION 6.15      Control by the Controlling Party. The Indenture
Trustee shall comply with notices and instructions given by the Issuer only if
accompanied by the written consent of the Controlling Party, except that if any
Event of Default shall have occurred and be continuing, the Indenture Trustee
shall act upon and comply with notices and instructions given by the Controlling
Party alone in the place and stead of the Issuer.

                                   ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

         SECTION 7.01      Issuer to Furnish Indenture Trustee Names and
Addresses of Noteholders. The Issuer will furnish or cause to be furnished to
the Indenture Trustee (i) not more than five days after the earlier of (a) each
Record Date and (b) three months after the last Record Date, a list, in such
form as the Indenture Trustee may reasonably require, of the names and addresses
of the Noteholders as of such Record Date and (ii) at such other times as the
Indenture Trustee may request in writing, within 15 days after receipt by the
Issuer of any such request, a list of similar form and content as of a date not
more than ten days prior to the time such list is furnished; provided, however,
that so long as the Indenture Trustee is the Note Registrar, no such list shall
be required to be furnished. The Indenture Trustee or, if the Indenture Trustee
is not the Note Registrar, the Issuer shall furnish to the Insurer in writing at
such times as the Insurer may reasonably request a copy of the list.

         SECTION 7.02      Preservation of Information; Communications to
Noteholders.

         (a) The Indenture Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Noteholders contained in
the most recent list furnished to the Indenture Trustee as provided in Section
7.01 and the names and addresses of Noteholders received by the Indenture
Trustee in its capacity as Note Registrar. The Indenture Trustee may destroy any
list furnished to it as provided in such Section 7.01 upon receipt of a new list
so furnished.

         (b) Noteholders may communicate pursuant to TIA Section 312 (b) with
other Noteholders with respect to their rights under this Indenture or under the
Notes.

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         (c) The Issuer, the Indenture Trustee and the Note Registrar shall have
the protection of TIA Section 312(c).

         SECTION 7.03      Reports by Issuer.

         (a) The Issuer shall:

                  (i)      file with the Indenture Trustee, within 15 days after
         the Issuer is required to file the same with the Commission, copies of
         the annual reports and of the information, documents and other reports
         (or copies of such portions of any of the foregoing as the Commission
         may from time to time by rules and regulations prescribe) 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 Indenture 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 Indenture Trustee (and the Indenture
         Trustee shall transmit by mail to all Noteholders described in TIA
         Section 313(c)) such summaries of any information, documents and
         reports required to be filed by the Issuer pursuant to clauses (i) and
         (ii) of this Section 7.03(a) 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 Indenture Trustee. To the extent that any
of the events described in TIA Section 313(a) shall have occurred, the Indenture
Trustee shall, within 60 days after each _______ beginning with _______, _____,
mail to the Issuer, the Insurer and each Noteholder as required by TIA section
313(c) a brief report dated as of such date that complies with TIA Section
313(a). The Indenture Trustee also shall comply with TIA Section 313(b).

                                  ARTICLE VIII

                  DISTRIBUTIONS; STATEMENTS TO THE NOTEHOLDERS

         SECTION 8.01      Collection Account. The Issuer shall cause the
Servicer to establish the Collection Account with the Indenture Trustee or
another Eligible Bank as a segregated trust account in the name of the Indenture
Trustee for the benefit of the Secured Parties. The amounts in the Collection
Account shall be invested in Eligible Investments that mature not later than the
Business Day prior to the next succeeding Payment Date and such Eligible
Investments shall be held to maturity. The Indenture Trustee (or its custodian)
shall (i) maintain possession of any negotiable instruments or securities
evidencing Eligible Investments until the time of sale or maturity and each
certificated security or negotiable instrument evidencing an Eligible Investment
shall be endorsed in blank or to the Indenture Trustee or

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<PAGE>

registered in the name of the Indenture Trustee and (ii) cause any Eligible
Investment represented by an uncertificated security to be registered in the
name of the Indenture Trustee.

         SECTION 8.02      Collections.

         (a)      The Indenture Trustee shall review the Servicer's Certificate
prepared by the Servicer immediately upon receipt thereof pursuant to Section
8.02 of the Trust Agreement.

         (b)      For any Payment Date on which there will not be sufficient
Available Funds to make the distributions required pursuant to Sections 8.04(a)
(i) through (viii), the Indenture Trustee shall withdraw or direct the Servicer
to withdraw from the Spread Account, to the extent of the Available Spread
Amount, an amount equal to such deficiency and promptly deposit such amount in
the Collection Account. If such deficiency exceeds the Available Spread Amount,
the Indenture Trustee shall notify the Insurer of the amount of such excess
deficiency. The Indenture Trustee shall promptly (and in any event not later
than 1:00 p.m., New York City time, on the Business Day preceding the Payment
Date) deliver a notice for payment to the Insurer with respect to the Policy (a
"Notice of Claim"). The Insurer is required pursuant to Section 9.03 and the
terms of the Policy to pay the amount of such excess deficiency of Monthly
Interest and Monthly Principal, up to the Policy Amount.

         (c)      The Indenture Trustee shall, immediately upon receipt, deposit
in the Collection Account any funds received by the Indenture Trustee in respect
of funds drawn under the Policy from the Insurer.

         (d)      If the Available Funds for a Payment Date are insufficient to
pay current and past due Insurance Premiums on the Policy, or any amounts owing
to the Insurer pursuant to the Insurance Agreement including, without
limitation, reimbursements, indemnities, fees and expenses, plus accrued
interest thereon, to the Insurer, the Servicer shall notify the Indenture
Trustee of such deficiency, and the applicable Available Spread Amount, if any,
then on deposit in the Spread Account (after giving effect to any withdrawal to
satisfy a deficiency in Monthly Interest or Monthly Principal) shall be
available to cover such deficiency.

         SECTION 8.03      Purchase Amounts. Pursuant to the Trust Agreement,
the Servicer and the Transferor have agreed to remit to the Collection Account
not later than the Determination Date, the aggregate Purchase Amount for such
Collection Period pursuant to Sections 7.02 and 8.10 of the Trust Agreement.

         SECTION 8.04      Distributions to Parties.

         (a)      On each Payment Date, the Indenture Trustee shall apply or
cause to be applied the Available Funds in the Collection Account for the prior
Collection Period, (plus any amounts withdrawn from the Spread Account or drawn
on the Policy pursuant to Section 8.02 and Section 9.03), to make the following
payments in the listed order of priority:

                  (i)      the monthly Indenture Trustee Fee (which Indenture
         Trustee Fee shall not exceed _________ in the aggregate) including any
         overdue monthly Indenture Trustee Fee, to the Indenture Trustee, as
         well as expense reimbursements and indemnities owed to the Indenture
         Trustee (subject to the foregoing limitation);

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<PAGE>

                  (ii)     without duplication, an amount equal to the sum of
         (y) Outstanding Advances on all receivables that became Charged-off
         Receivables during the prior Collection Period, plus (z) Outstanding
         Advances which the Servicer determines to be unrecoverable pursuant to
         Section 9.05 of the Trust Agreement, to the Servicer;

                  (iii)    the monthly Servicing Fee, including any overdue
         monthly Servicing Fee, to the Servicer, to the extent not previously
         distributed to the Servicer, the monthly Standby Servicing Fee, (which
         Standby Servicing Fee shall not exceed _______) including any overdue
         monthly Standby Servicing Fee to the Standby Servicer to the extent not
         previously distributed to the Standby Servicer, the monthly Owner
         Trustee Fee (which Owner Trustee Fee shall not exceed ______________ in
         the aggregate), including any overdue monthly Owner Trustee Fee, to the
         Owner Trustee, as well as expense reimbursements and indemnities owed
         to the Servicer, Standby Servicer and Owner Trustee (subject to the
         foregoing limitations), and, to any Successor Servicer, Transition
         Costs (which Transition Costs shall not exceed ___________ without the
         prior written consent of the Insurer and the satisfaction of the Rating
         Agency Condition), and, to the extent Available Funds are insufficient
         on any Payment Date to make all such payments, such Available Funds
         shall be distributed pro rata with respect to the foregoing payments;

                  (iv)     Class A Monthly Interest to the Class A Noteholders;

                  (v)      Monthly Principal to the Class A Noteholders, in
         accordance with the Principal Payment Sequence;

                  (vi)     Class B Monthly Interest to the Class B Noteholders;

                  (vii)    Monthly Principal to the Class B Noteholders in
         accordance with the Principal Payment Sequence (only after the
         principal balances of the Class A Notes have been repaid in full);

                  (viii)   The Insurance Premium, including any overdue
         Insurance Premium, plus accrued interest thereon at the rate provided
         in the Insurance Agreement, the aggregate amount of all unreimbursed
         draws made on the Policy in respect of Monthly Interest and Monthly
         Principal and any other amounts payable to the Insurer under the
         Insurance Agreement, plus accrued interest thereon at the rate provided
         in the Insurance Agreement, to the Insurer;

                  (ix)     the Servicing Fee, Standby Servicer Fee, Indenture
         Trustee Fee, and Owner Trustee Fee, as well as expense reimbursements
         and indemnities owed to the Servicer, Standby Servicer, Indenture
         Trustee and Owner Trustee and Transition Costs incurred by any
         Successor Servicer (to the extent not paid pursuant to (i) or (iii)
         above), to the Servicer, Standby Servicer, Indenture Trustee, Owner
         Trustee and any Successor Servicer, respectively;

                  (x)      The amount of recoveries of Advances, to the Servicer
         (to the extent not applied pursuant to (ii) above on or prior to such
         Payment Date);

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<PAGE>

                  (xi)     The balance for deposit in the Spread Account. The
         rights of the Certificateholders to receive distributions from the
         Spread Account are described in Sections 9.02(e) and (f).

         (b)      (i) If on any Payment Date there are not sufficient Available
Funds (together with amounts withdrawn from the applicable Spread Account and/or
the Policy) to pay the distributions required by Section 8.04(a)(iv) through
(vii), the Available Funds payable under Section 8.04(a)(iv) through (vii) shall
be allocated first to Class A Noteholders pari passu for the payment of Class A
Monthly Interest, and second for Class A Monthly Principal. The amount of
Monthly Interest allocated to Class A Noteholders shall be based upon the amount
of interest due each class of Class A Noteholders and the amount of Monthly
Principal allocated to Class A Noteholders shall be based upon the relative
outstanding Note Balance of each class of Class A Notes then Outstanding.

                  (ii)     Notwithstanding the foregoing, if on any Payment
         Date, the Servicer exercises its option to cause a disposition of the
         remaining corpus of the Trust pursuant to Section 16.02 of the Trust
         Agreement: (A) the Available Funds and amounts withdrawn from the
         Spread Account or drawn on the Policy in respect only of Monthly
         Interest and Monthly Principal with respect to the immediately
         preceding Payment Date as determined in accordance with Sections 8.02
         and 8.04 shall be distributed to the Noteholders on such Payment Date
         (B) the Policy will not be available to pay any shortfall of Monthly
         Interest or Monthly Principal after a prepayment of the Note Balances
         pursuant to this Section 8.04(b) (ii); and (C) any remaining Pledged
         Assets (including all remaining Available Spread Amounts) shall be paid
         to the Noteholders on such Payment Date until the Note Balances shall
         have been reduced to zero. Any amounts in excess thereof shall be
         remitted to the Certificateholder pursuant to the Trust Agreement.

                  (iii)    In making such payments the Indenture Trustee shall
         be entitled to rely (without investigation, confirmation or
         recalculation) upon all information and calculations contained in the
         Servicer's Certificate delivered to the Indenture Trustee pursuant to
         Section 8.12 of the Trust Agreement.

         (c)      On each Payment Date, if the Servicer has reported to the
Indenture Trustee in the Servicer's Certificate for any Collection Period that
an Obligor or an Obligor's representative or successor successfully shall have
asserted a claim or defense under bankruptcy law or similar laws for the
protection of creditors generally (including the avoidance of a preferential
transfer under bankruptcy law) that results in a liability to such Obligor for
monies previously collected and remitted to the Indenture Trustee and not
otherwise netted against collections pursuant to Section 8.02, the Indenture
Trustee shall make all payments in respect of such claims or defenses out of the
amounts on deposit in the Collection Account with respect to such Collection
Period before making the distributions required by paragraph (a) of this Section
8.04.

         (d)      If the Servicer has failed to provide the Indenture Trustee
with Servicer's Certificate required pursuant to Section 8.02, the Indenture
Trustee may calculate Monthly Interest and Monthly Principal and apply funds, if
any, in the Collection Account as of the last

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<PAGE>

day of the Collection Period, to make a distribution of Monthly Interest and
Monthly Principal to the Noteholders.

         (e)      In making such payments under this Section 8.04 the Indenture
Trustee shall be entitled to solely rely (without investigation, confirmation or
recalculation) upon all information and calculations contained in the Servicer's
Certificate.

         (f)      All monthly payments shall be made by wire transfer of
immediately available funds to the Noteholder of record on the preceding Record
Date. Notwithstanding the foregoing, the final payment on the Notes shall be
made only against presentation and surrender of the Notes at the office or
agency then maintained by the Indenture Trustee in accordance with Section 3.02
of this Indenture.

         (g)      If an Event of Default occurs and the Notes have been
accelerated, the Indenture Trustee may exercise any of the remedies specified in
Section 5.04(a). Payments following acceleration of any Notes shall be applied
by the Indenture Trustee:

                  (i)      first, to pay any unpaid monthly Indenture Trustee
         Fee and expense reimbursements and indemnities owed to the Indenture
         Trustee;

                  (ii)     second, pro rata, to pay any unpaid monthly Servicing
         Fee, Standby Servicing Fee and Owner Trustee Fee, as well as expense
         reimbursements and indemnities owed to the Servicer, Standby Servicer
         and Owner Trustee;

                  (iii)    third, to pay accrued interest on each class of Class
         A Notes on a pro rata basis based on the interest accrued (including
         interest accrued on past due interest) on each class of Class A Notes;

                  (iv)     fourth, to pay principal on each class of Class A
         Notes, on a pro rata basis based on the Class A Note Balance, until the
         Note Balance of each Class of Class A Notes is reduced to zero;

                  (v)      fifth, to pay accrued interest on the Class B Notes
         (including interest accrued on past due interest);

                  (vi)     sixth, to pay principal on the Class B Notes until
         the Note Balance on the Class B Notes is reduced to zero;

                  (vii)    seventh, to pay the Insurance Premium and all other
         amounts owing the Insurer under the Insurance Agreement; and

                  (viii)   eighth, to the Spread Account, to be applied in
         accordance with the Insurance Agreement;

         provided, however, that in no event shall any amounts received pursuant
         to the Policy be paid to any party other than pursuant to clauses (iii)
         through (vi) above.

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<PAGE>

         SECTION 8.05      Servicer Advances. The Servicer is required to make
certain Advances pursuant to Section 9.05 of the Trust Agreement. If the
Servicer shall determine that an Outstanding Advance with respect to any
Receivable shall not be recoverable, the Servicer shall be entitled to
reimbursement from any collections made on other Receivables pursuant to Section
8.04(a) (ii), and Outstanding Advances with respect to such Receivable shall be
reduced accordingly.

         SECTION 8.06      Net Deposits. For so long as BVAC is the Servicer,
BVAC (in whatever capacity) may make the remittances with respect to any Payment
Date pursuant to Section 8.02 above, net of amounts to be distributed to itself
or its delegee under Section 12.06 (also in whatever capacity) pursuant to
Section 8.04, if it determines pursuant to Section 8.02 that there is no
deficiency in Available Funds for such Payment Date. Nonetheless, the Servicer
shall account for all of the above described amounts as if such amounts were
deposited and distributed.

         SECTION 8.07      Payahead Account. The Servicer shall establish the
Payahead Account with the Indenture Trustee or another Eligible Bank in the name
of the Indenture Trustee on behalf of the Obligors and the Noteholders as their
interests may appear pursuant to Section 9.09 of the Trust Agreement. Investment
income or interest earned on the Payahead Account shall be included as Available
Funds. On or prior to each Payment Date, the Servicer shall transfer or the
Indenture Trustee (as instructed in the Servicer's Certificate) shall transfer
(a) from the Collection Account to the Payahead Account, in immediately
available funds, all Payaheads received by the Servicer and previously deposited
to the Collection Account during the Collection Period as described in Section
9.02 of the Trust Agreement; and (b) from the Payahead Account to the Collection
Account, in immediately available funds, the aggregate amount of previously
deposited Payaheads to be applied to the related Scheduled Payments on
Precomputed Receivables for the related Collection Period or prepayments for the
related Collection Period, pursuant to Section 8.05(b) of the Trust Agreement,
each in the amounts set forth in the Servicer's Certificate delivered on the
related Determination Date. A single, net transfer between the Payahead Account
and the Collection Account may be made. Any amount deposited in any Payahead
Account shall not constitute Available Funds under Section 8.02. Any amount
deposited to the Collection Account from a Payahead Account pursuant to this
Section 8.07(b) shall be included in Available Funds under Section 8.02.

         SECTION 8.08      Release of Pledged Assets.

         (a)      Subject to the payment of its fees and expenses pursuant to
Section 6.07, the Indenture Trustee may, and when required by the provisions of
this Indenture shall, execute instruments to release property from the lien of
this Indenture, or convey the Indenture Trustee's interest in the same, in a
manner and under circumstances that are not inconsistent with the provisions of
this Indenture. No party relying upon an instrument executed by the Indenture
Trustee as provided in this Article shall be bound to ascertain the Indenture
Trustee's authority, inquire into the satisfaction of any conditions precedent
or see to the application of any monies.

         (b)      The Indenture Trustee shall, at such time as there are no
Notes Outstanding and all sums due the Indenture Trustee pursuant to Section
6.07 and to the Insurer pursuant to the Insurance Agreement have been paid,
release any remaining portion of the Pledged Assets that

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<PAGE>

secured the Notes from the lien of this Indenture and release to the Issuer or
any other Person entitled thereto any funds then on deposit in the Trust
Accounts. The Indenture Trustee shall release property from the lien of this
Indenture pursuant to this Section 8.08(b) 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 Sections
314(c) and 314(d) (1) meeting the applicable requirements of Section 12.01.

         SECTION 8.09      Opinion of Counsel. The Indenture Trustee shall
receive at least seven days' notice when requested by the Issuer to take any
action pursuant to Section 8.08(a), accompanied by copies of any instruments
involved, and the Indenture Trustee shall also require, as a condition to such
action, an Opinion of Counsel, in form and substance satisfactory to the
Indenture Trustee (and not at the expense of the Indenture Trustee), stating the
legal effect of any such action, outlining the steps required to complete the
same, and concluding that all conditions precedent to the taking of such action
have been complied with and such action will not materially and adversely impair
the security for the Notes or the rights of the Noteholders in contravention of
the provisions of this Indenture; provided, however, that such Opinion of
Counsel shall not be required to express an opinion as to the fair value of the
Pledged Assets. Counsel rendering any such opinion may rely, without independent
investigation, on the accuracy and validity of any certificate or other
instrument delivered to the Indenture Trustee in connection with any such
action.

                                   ARTICLE IX

                               CREDIT ENHANCEMENT

         SECTION 9.01      Subordination. The payment of Monthly Interest and
Monthly Principal to Class B Noteholders shall be subordinated to the payment of
Class A Monthly Interest and Class A Monthly Principal on any Payment Date.

         SECTION 9.02      Spread Account.

         (a)      On or prior to the Closing Date, the Indenture Trustee shall
establish and maintain a segregated trust account with the Indenture Trustee or
in the corporate trust department of another Eligible Bank referred to herein as
the "Spread Account." The Spread Account shall be maintained in the name of the
Indenture Trustee. The Spread Account and any amounts on deposit therein shall
be part of the Pledged Assets and shall be for the benefit of Secured Parties,
as their respective interests may appear herein; provided, however, that the
interest of the Insurer therein shall be subordinated to the interests of the
Noteholders as provided herein.

         (b)      Funds on deposit in the Spread Account shall be invested in
Eligible Investments in the same manner and subject to the same requirements and
limitations as the investment of funds in the Collection Account pursuant to
Section 8.01, including the limitation that Eligible Investments mature not
later than the Business Day prior to the next succeeding Payment Date; provided,
however, that no such limitation on the maturity of Eligible Investments shall
apply if the Indenture Trustee obtains the benefit of a liquidity facility or
similar arrangement from a commercial bank with an Approved Rating or other
provider approved in advance in writing by the Insurer and the Administrative
Agent, with respect to funds in the Spread Account (a "Spread

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<PAGE>

Account Facility") and confirm in writing that the rating of the Notes will not
be lowered or withdrawn as a result of eliminating or modifying the limitation
on the maturity of Eligible Investments in respect of the Spread Account. For
purposes of determining the availability of funds or the balance in the Spread
Account for any reason under this Indenture, investment earnings on such funds
shall be deemed to be available or on deposit only to the extent that the
aggregate of such amounts, plus the funds on deposit in such Spread Account, do
not exceed the Required Spread Amount.

         (c)      If on any Payment Date the amount of Available Funds is
insufficient to make the distributions required by Sections 8.04(a)(i) through
(viii), the Indenture Trustee shall withdraw or cause to be withdrawn from the
Spread Account and deposited in the Collection Account the lesser of (i) the
entire Available Spread Amount and (ii) the amount necessary to make up such
deficiency to pay any deficiency in permitted reimbursements of Outstanding
Advances pursuant to Section 8.04(a) (ii), the Monthly Servicing Fee, Monthly
Interest, Monthly principal (prior to making any draw on the Policy) and the
Insurance Premium, all as provided in Sections 8.02 and 8.04 and the Policy.

         (d)      On each Payment Date, all distributions made pursuant to
Section 8.04(a)(xi) shall be deposited into the Spread Account; provided,
however, that the Accelerated Principal Amount has been paid in full to the
Noteholders.

         (e)      If the amount on deposit in the Spread Account, after giving
effect to the distributions set forth in Section 8.04 (including, without
limitation, payment of amounts due and owing to the Insurer) is greater than the
Required Spread Amount on such Payment Date (after giving effect to the payment
of the Accelerated Principal Amount in Monthly Principal), the amount of such
excess shall be distributed by the Indenture Trustee to the Owner Trustee, or as
the Owner Trustee shall direct in accordance with the Trust Agreement to the
Certificateholders. Amounts properly distributed to the Owner Trustee or
Certificateholders pursuant to this Section either directly without deposit in
the Spread Account or from excess amounts in the Spread Account shall be deemed
released from the security interest of the Indenture Trustee on behalf of the
Secured Parties.

         (f)      Upon discharge and satisfaction of this Indenture pursuant to
Section 4.01, amounts remaining in the Spread Account, after payment of any
amounts due and owing to the Noteholders and to the Insurer, shall be
distributed by the Indenture Trustee to the Owner Trustee, or as the Owner
Trustee shall direct in accordance with the Trust Agreement to the
Certificateholders and such amounts shall not be subject to any claims or rights
of any Noteholder.

         SECTION 9.03      Policy.

         (a)      The Insurer is required under the terms of the Policy to pay
Monthly Interest and Monthly Principal on any Payment Date up to the Policy
Amount in the event of any deficiency of Available Funds to pay such amounts
(after permitted reimbursements of related Outstanding Advances and payment of
the related Monthly Servicing Fee) not covered by amounts withdrawn from the
Spread Account, as determined pursuant to Section 8.02 (the amount of such
shortfall being hereinafter referred to as the "Policy Claim Amount") to the
Indenture

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<PAGE>

Trustee for credit to the Collection Account on the later of (a) 12:00 noon, New
York City time, on the applicable Payment Date and (b) 12:00 noon, New York City
time, on the Business Day immediately succeeding presentation to the Insurer of
the Indenture Trustee's demand therefor. Any demand for payment pursuant to
Section 8.02 to the Insurer received by the Insurer on a Business Day after 1:00
p.m., New York City time, or on any day that is not a Business Day, will be
deemed to be received by the Indenture Trustee at 9:00 a.m., New York City time,
on the next Business Day. Notwithstanding the foregoing, on a Dissolution
Payment Date, the obligations of the Insurer under the Policy shall be limited
in accordance with Section 8.04(b) (ii). The Indenture Trustee hereby agrees on
behalf of the Noteholders (and each Noteholder, by its acceptance of its Notes,
hereby agrees) for the benefit of the Insurer that the Indenture Trustee shall
recognize that to the extent the Insurer makes a payment under the Policy,
either directly or indirectly (as by paying through the Indenture Trustee), to
the Noteholders, the Insurer will be entitled to be subrogated to the rights of
the Noteholders to the extent of such payments under the Policy. Any rights of
subrogation acquired by the Insurer as a result of any payment made under the
Policy shall, in all respects, be subordinate and junior in right of payment to
the prior indefeasible payment in full of all amounts due the Indenture Trustee
on account of payments due under the Notes pursuant to Section 8.04 hereof.

         (b)      The Indenture Trustee shall (i) receive as attorney-in-fact of
each Noteholder any Policy Claim Amount from the Insurer and (ii) deposit the
same in the Collection Account for distribution to the Noteholders solely in
accordance with the terms of the Policy. Any and all Policy Amounts disbursed by
the Indenture Trustee from claims made under the Policy shall not be considered
payment by the Trust or from the Spread Account with respect to such Notes, and
shall not discharge the obligations of the Trust with respect thereto. The
Insurer shall, to the extent it makes any payment with respect to the Notes,
become subrogated to the rights of the recipients of such payments to the extent
of such payments. Subject to and conditioned upon any payment with respect to
the Notes by or on behalf of the Insurer, each Noteholder shall be deemed
without further action, to have directed the Indenture Trustee to assign to the
Insurer all rights to the payment of interest or principal with respect to the
Notes which are then due for payment to the extent of all payments made by the
Insurer, and the Insurer may exercise any option, vote, right, power or the like
with respect to the Notes to the extent that it has made payment pursuant to the
Policy. Notwithstanding the foregoing, the order of priority of payments to be
made pursuant to Section 8.04 (a) shall not be modified by this Section 9.03.

         (c)      The Indenture Trustee shall keep a complete and accurate
record of all funds received by it from the Insurer, amounts deposited by the
Indenture Trustee into the Collection Account and the allocation of such funds
to payment of interest on and principal paid in respect of any Note. The Insurer
shall have the right to inspect such records at reasonable times upon one
Business Day's prior notice to the Indenture Trustee.

         (d)      The Indenture Trustee shall be entitled, but not obligated, to
enforce on behalf of the Noteholders the obligations of the Insurer under the
Policy. Notwithstanding any other provision of this Agreement or any Basic
Document, the Noteholders are not entitled to institute proceedings directly
against the Insurer.

         (e)      In the event that the Indenture Trustee has received a
certified copy of an order of the appropriate court that any Scheduled Payment
(as defined in the Policy) paid on a Note has

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been avoided in whole or in part as a preference payment under applicable
bankruptcy law, the Indenture Trustee shall so notify the Insurer, shall comply
with the provisions of the Policy to obtain payment by the Insurer of such
avoided payment, and shall, at the time it provides notice to the Insurer,
notify Holders of the Notes by mail that, in the event that any Noteholder's
payment is so recoverable, such Noteholder will be entitled to payment pursuant
to the terms of the Policy. The Indenture Trustee shall furnish to the Insurer
its records evidencing the payments of principal and interest on Notes, if any,
which have been made by the Indenture Trustee and subsequently recovered from
Noteholders, and the dates on which such payments were made. Pursuant to the
terms of the Policy, the Insurer will make such payment on behalf of the
Noteholder to the receiver, conservator, debtor-in-possession or trustee in
bankruptcy named in the Order (as defined in the Policy) and not to the
Indenture Trustee or any Noteholder directly (unless a Noteholder has previously
paid such payment to the receiver, conservator, debtor-in-possession or trustee
in bankruptcy, in which case the Insurer will make such payment to the Indenture
Trustee for distribution in accordance with the instructions to be provided by
the Insurer, to such Noteholder upon proof of such payment reasonably
satisfactory to the Insurer).

         (f)      Each Notice of Claim shall provide that the Indenture Trustee,
on its behalf and on behalf of the Noteholders, thereby appoints the Insurer as
agent and attorney-in-fact for the Indenture Trustee and each Noteholder in any
legal proceeding with respect to the Notes. The Indenture Trustee shall promptly
notify the Insurer of any proceeding or the Institution of any action (of which
a Responsible Officer of the Indenture Trustee has actual knowledge) seeking the
avoidance as a preferential transfer under applicable bankruptcy, insolvency,
receivership, rehabilitation or similar law (a "Preference Claim") of any
distribution made with respect to the Notes. Each Holder, by its purchase of
Notes, and the Indenture Trustee hereby agree that so long as the Insurer is the
Controlling Party the Insurer may at any time during the continuation of any
proceeding relating to a Preference Claim direct all matters relating to such
Preference Claim, including, without limitation, (i) the direction of any appeal
of any order relating to any Preference Claim and (ii) the posting of any
surety, supersedeas or performance bond pending any such appeal at the expense
of the Insurer, but subject to reimbursement as provided in the Insurance
Agreement. In addition, and without limitation of the foregoing, as set forth in
Section 9.03(a) and (b), the Insurer shall be subrogated to, and each Noteholder
and the Indenture Trustee hereby delegate and assign, to the fullest extent
permitted by law, the rights of the Indenture Trustee and each Noteholder in the
conduct of any proceeding with respect to a Preference Claim, including, without
limitation, all rights of any party to an adversary proceeding action with
respect to any court order issued in connection with any such Preference Claim.
Any right of the Insurer to receive payments in respect of the subrogation
resulting from payments made pursuant to the Policy shall be subject in every
case to (i) the priority of payment set forth in the Indenture and (ii) the
prior payment in full to Noteholders of all payments by the Policy that are then
due.

         SECTION 9.04      Surrender of the Policy. The Indenture Trustee shall
surrender the Policy to the Insurer for cancellation upon its expiration in
accordance with the terms thereof and payment of all amounts due thereunder.

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                                   ARTICLE X

                             SUPPLEMENTAL INDENTURES

         SECTION 10.01     Supplemental Indentures Without Consent of
Noteholders.

         (a)      Without the consent of the Holders of any Notes but with the
consent of the Insurer (so long as it is the Controlling Party) and with prior
notice to each Rating Agency, the Issuer and the Indenture Trustee, when
authorized by an Issuer Order, and the other parties hereto at any time and from
time to time, may enter into one or more indentures supplemental hereto (which
shall conform to the provisions of the TIA as in force at the date of the
execution thereof), in form satisfactory to the Indenture Trustee, for any of
the following purposes:

                  (i)      to correct or amplify the description of any property
         at any time subject to the lien of this Indenture, or better to assure,
         convey and confirm unto the Indenture 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 Noteholders, or to surrender any right or power herein
         conferred upon the Issuer;

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

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

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

                  (vii)    to modify, eliminate or add to the provisions of this
         Indenture to such extent as shall be necessary to effect the
         qualification of this Indenture under the TIA or under any similar
         federal statute hereafter enacted and to add to this Indenture such
         other provisions as may be expressly required by the TIA.

         The Indenture Trustee is hereby authorized to join in the execution of
any such supplemental indenture and to make any further appropriate agreements
and stipulations that may be therein contained.

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         (b)      The Issuer and the Indenture Trustee, when authorized by an
Issuer Order, may, also without the consent of any of the Noteholders but with
the consent of the Insurer and with prior notice to each Rating Agency, 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
Noteholders under 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 10.02     Supplemental Indentures With Consent of Noteholders.

         (a)      The Issuer and the Indenture Trustee, when authorized by an
Issuer Order, also may, with prior notice to each Rating Agency, with the
consent of the Insurer (so long as it is the Controlling Party) and with the
consent of the Holders of not less than a majority of the Note Balances of the
Notes, by Act of such Holders delivered to the Issuer and the Indenture Trustee,
enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to, or changing in any manner or eliminating any of the
provisions of, this Indenture or of modifying in any manner the rights of the
Noteholders under this Indenture; provided, however, that, subject to the
express rights of the Insurer under the Basic Documents, 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, or change any place of payment where, or the coin or currency
         in which, any Note or the interest thereon is payable;

                  (ii)     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);

                  (iii)    reduce the percentage of the Note Balances 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;

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

                  (v)      reduce the percentage of the Note Balances of the
         Notes, the consent of the Holders of which is required to direct the
         Indenture Trustee to sell or liquidate the Pledged Assets pursuant to
         Section 5.04;

                  (vi)     decrease the percentage of the Note Balances of the
         Notes required to amend this Indenture or the other Basic Documents;

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                  (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 Pledged Assets 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.

         (b)      The Indenture 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 Indenture
Trustee shall not be liable for any such determination made in good faith.

         (c)      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.

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

         SECTION 10.03     Execution of Supplemental Indentures. In executing,
or permitting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by
this Indenture, the Indenture Trustee shall be entitled to receive, and subject
to Sections 6.01 and 6.02 shall be fully protected in relying upon, an Opinion
of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Indenture Trustee may, but shall
not be obligated to, enter into any such supplemental indenture that affects the
Indenture Trustee's own rights, duties, liabilities or immunities under this
Indenture or otherwise.

         SECTION 10.04     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 parties hereto and the Noteholders shall thereafter be determined, exercised
and enforced hereunder subject in all respects to such modifications and
amendments, and all the terms and conditions of any such supplemental indenture
shall be and be deemed to be part of the terms and conditions of this Indenture
for any and all purposes.

         SECTION 10.05     Conformity with Trust Indenture Act. Every amendment
of this Indenture and every supplemental indenture executed pursuant to this
Article 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

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         SECTION 10.06     Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and if required by the Indenture Trustee shall,
bear a notation in form approved by the Indenture Trustee as to any matter
provided for in such supplemental indenture. If the Issuer or the Indenture
Trustee shall so determine, new notes so modified as to conform, in the opinion
of the Indenture Trustee and the Issuer, to any such supplemental indenture may
be prepared and executed by the Issuer and authenticated and delivered by the
Indenture Trustee in exchange for Outstanding Notes.

                                   ARTICLE XI

                               REDEMPTION OF NOTES

         SECTION 11.01     Redemption. In the event that the Servicer pursuant
to Section 16.02 of the Trust Agreement purchases the corpus of the Trust, the
Notes are subject to redemption in whole, but not in part, on the Payment Date
on which such repurchase 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 Servicer or the Issuer shall furnish the Insurer and
each Rating Agency notice of such redemption. If the Notes are to be redeemed
pursuant to this Section 11.01, the Servicer or the Issuer shall furnish notice
of such election to the Indenture Trustee not later than 20 days prior to the
Redemption Date and the Issuer shall deposit with the Indenture Trustee in the
Collection 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 11.02 to each Holder of the Notes.

         SECTION 11.02     Form of Redemption Notice. Notice of redemption under
Section 11.01 shall be given by the Indenture 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 preceding the applicable Redemption Date, at such Holder's address
appearing in the Note Register. In addition, the Administrator shall notify the
Insurer and Rating Agencies upon the redemption of any Class of Notes, pursuant
to Section 2.06(b) of this Indenture.

         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 Indenture
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.

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         SECTION 11.03     Notes Payable on Redemption Date. The Notes or
portions thereof to be redeemed shall, following notice of redemption (if any)
as required by Section 11.02, 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.

                                  ARTICLE XII

                                  MISCELLANEOUS

         SECTION 12.01     Compliance Certificates and Opinions, etc.

         (a)      Upon any application or request by the Issuer to the Indenture
Trustee to take any action under any provision of this Indenture, the Issuer
shall furnish to the Indenture Trustee (i) an Officer's Certificate stating that
all conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with, (ii) an Opinion of Counsel stating that
in the opinion of such counsel all such conditions precedent, if any, have been
complied with and (iii) (if required by the TIA) an Independent Certificate from
a firm of certified public accountants meeting the applicable requirements of
this Section and TIA Sections 314(c) and 314(d) (1). Notwithstanding the
foregoing, 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 Pledged Assets or other
property or securities with the Indenture 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 12.01(a) or
elsewhere in this Indenture, furnish to the Indenture Trustee and the Insurer an
Officer's Certificate certifying or stating the opinion of the signer thereof as
to the fair value

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(within 90 days of such deposit) to the Issuer of the Pledged Assets or other
property or securities to be so deposited.

                  (ii)     Whenever the Issuer is required to furnish to the
         Indenture Trustee and the Insurer an Officer's Certificate certifying
         or stating the opinion of any signer thereof as to the matters
         described in clause (i) above, the Issuer shall also deliver to the
         Indenture Trustee and the Insurer an Independent Certificate as to the
         named 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 Officer's Certificates
         delivered pursuant to clause (i) above and this clause (ii), is 10% or
         more of the Note Balances of the Notes, but such Officer's 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 Officer's
         Certificate is less than $25,000 or less than one percent of the Note
         Balances of the Notes.

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

                  (iv)     Whenever the Issuer is required to furnish to the
         Indenture Trustee and the Insurer an Officer's Certificate certifying
         or stating the opinion of any signer thereof as to the matters
         described in clause (iii) above, the Issuer shall also furnish to the
         Indenture Trustee and the Insurer an Independent Certificate as to the
         same matters if the fair value of the property or securities and of all
         other property or securities released from the lien created by this
         Indenture since the commencement of the then current fiscal year, as
         set forth in the Officer's Certificate required by clause (iii) above
         and this clause (iv), equals 10% or more of the Note Balances of the
         Notes, but such Officer's Certificate need not be furnished in the case
         of any release of property or securities if the fair value thereof as
         set forth in the related Officer's Certificate is less than $25,000 or
         less than one percent of the then Note Balances of the Notes.

         SECTION 12.02     Form of Documents Delivered to Indenture Trustee.

         (a)      In any case where several matters are required to be certified
by, or covered by an opinion of, any specified Person, it is not necessary that
all such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.

         (b)      Any certificate or opinion of an Authorized Officer of the
Issuer may be based, insofar as it relates to legal matters, upon a certificate
or opinion of, or representations by,

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counsel, unless such officer knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to the
matters upon which 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 Transferor or
the Issuer, stating that the information with respect to such factual matters is
in the possession of the Servicer, the Transferor or the Issuer, unless such
officer or 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.

         (c)      Where any Person is required to make, give or execute two or
more applications, requests, consents, certificates, statements, opinions or
other instruments under this Indenture, they may, but need not, be consolidated
and form one instrument.

         (d)      Whenever in this Indenture, in connection with any application
or certificate or report to the Indenture Trustee, it is provided that the
Issuer shall deliver any document as a condition of the granting of such
application, or as evidence of the Issuer's compliance with any term hereof, it
is intended that the truth and accuracy, at the time of the granting of such
application or at the effective date of such certificate or report (as the case
may be), of the facts and opinions stated in such document shall in such case be
conditions precedent to the right of the Issuer to have such application granted
or to the sufficiency of such certificate or report. The foregoing shall not,
however, be construed to affect the Indenture Trustee's right to rely upon the
truth and accuracy of any statement or opinion contained in any such document as
provided in Article Six.

         SECTION 12.03     Acts of Noteholders.

         (a)      Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be given or taken
by Noteholders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Noteholders in person or by agents
duly appointed in writing; and except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments are
delivered to the Indenture Trustee, and, where it is hereby expressly required,
to the Issuer. Such instrument or instruments (and the action embodied therein
and evidenced thereby) are herein sometimes referred to as the "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 Indenture Trustee and the Issuer, if made in the manner provided in
this Section.

         (b)      The fact and date of the execution by any Person of any such
instrument or writing may be proved in any manner that the Indenture Trustee
deems sufficient.

         (c)      The ownership of Notes shall be proved by the Note Register
and the record date applicable to any solicitation for an Act of the Noteholders
shall comply with Section 316(c) of the TIA.

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         (d)      Any request, demand, authorization, direction, notice,
consent, waiver or other action by the Holder of any Notes shall bind the Holder
of every Note issued upon the registration thereof or in exchange therefor or in
lieu thereof, in respect of anything done, omitted or suffered to be done by the
Indenture Trustee or the Issuer in reliance thereon, whether or not notation of
such action is made upon such Note.

         SECTION 12.04     Notices, etc., to Indenture Trustee, Issuer, Insurer
and Rating Agencies.

         (a)      Any request, demand, authorization, direction, notice,
consent, waiver or Act of Noteholders or other documents provided or permitted
by this Indenture shall be in writing and if such request, demand,
authorization, direction, notice, consent, waiver or Act of Noteholders is to be
made upon, given or furnished to or filed with:

                  (i)      the Indenture Trustee by any Noteholder or by the
         Issuer shall be sufficient for every purpose hereunder if in writing,
         personally delivered, sent by facsimile transmission and confirmed or
         mailed by overnight service, to or with the Indenture Trustee at its
         Corporate Trust Office;

                  (ii)     the Issuer by the Indenture Trustee or by any
         Noteholder shall be sufficient for every purpose hereunder if in
         writing, personally delivered, sent by facsimile transmission and
         confirmed or mailed by overnight service, to the Issuer addressed to:
         Bay View _____ Owner Trust in care of __________, as Owner Trustee,
         __________ Attention: __________ or at any other address furnished in
         writing to the Indenture Trustee by the Issuer; or

                  (iii)    the Insurer by the Issuer or the Indenture Trustee
         shall be sufficient for any purpose hereunder if in writing, personally
         delivered, sent by facsimile transmission and confirmed or mailed by
         overnight service, to the Insurer addressed to:__________________.

         (b)      Notices required to be given to the Rating Agencies by the
Issuer, the Indenture Trustee or the Owner Trustee shall be in writing,
personally delivered, sent by facsimile transmission and confirmed or mailed by
overnight service, to (i) in the case of ____________________, at the following
address: ____________________; in the case of ____________________, Attention:
____________________; or as to each of the foregoing, at such other address as
shall be designated by written notice to the other parties.

         SECTION 12.05     Notices to Noteholders; Waiver.

         (a)      Where this Indenture provides for notice to Noteholders of any
event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class, postage prepaid to
each Noteholder affected by such event, at his address as it appears on the Note
Register, not later than the latest date, and not earlier than the earliest
date, prescribed for the giving of such notice. In any case where notice to
Noteholders is given by mail, neither the failure to mail such notice nor any
defect in any notice so mailed to any particular Noteholder shall affect the
sufficiency of such notice with respect to other

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Noteholders, and any notice that is mailed in the manner herein provided shall
conclusively be presumed to have been duly given.

         (b)      Where this Indenture provides for notice in any manner, such
notice may be waived in writing by any Person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of
such notice. Waivers of notice by Noteholders shall be filed with the Indenture
Trustee but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such a waiver.

         (c)      In case, by reason of the suspension of regular mail service
as a result of a strike, work stoppage or similar activity, it shall be
impractical to mail notice of any event to Noteholders when such notice is
required to be given pursuant to any provision of this Indenture, then any
manner of giving such notice as shall be satisfactory to the Indenture Trustee
shall be deemed to be a sufficient giving of such notice.

         (d)      Where this Indenture provides for notice to the Rating
Agencies, failure to give such notice shall not affect any other rights or
obligations created hereunder, and shall not under any circumstance constitute a
Default or Event of Default.

         SECTION 12.06     Alternate Payment and Notice Provisions.
Notwithstanding any provision of this Indenture or any of the Notes to the
contrary, the Issuer may enter into any agreement with any Holder of a Note
providing for a method of payment, or notice by the Indenture Trustee or any
Paying Agent to such Holder, that is different from the methods provided for in
this Indenture for such payments or notices. The Issuer will furnish to the
Indenture Trustee a copy of each such agreement and the Indenture Trustee will
cause payments to be made and notices to be given in accordance with such
agreements.

         SECTION 12.07     Conflict With Trust Indenture Act.

         (a)      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.

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

         SECTION 12.08     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 12.09     Successors and Assigns. All covenants and agreements
in this Indenture and the Notes by the Issuer shall bind its successors and
assigns, whether so expressed or not. All agreements of the Indenture Trustee in
this Indenture shall bind its successors, co-trustees and agents.

                                       70

<PAGE>

         SECTION 12.10     Separability. In case any provision in this Indenture
or in the Notes shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.

         SECTION 12.11     Benefits of Indenture. The Insurer and its successors
and assigns shall be a third-party beneficiary to the provisions of this
Indenture, and shall be entitled to rely upon and directly to enforce such
provisions of this Indenture so long as no Insurer Default shall have occurred
and be continuing. 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
Pledged Assets, any benefit or any legal or equitable right, remedy or claim
under this Indenture. The Insurer may disclaim any of its rights and powers
under this Indenture, but not its duties and obligations under the Policy, upon
delivery of a written notice to the Indenture Trustee.

         SECTION 12.12     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 12.13     Governing Law. This Indenture shall be construed in
accordance with the laws of the state of New York and the obligations, rights,
and remedies of the parties under this Indenture shall be determined in
accordance with such laws.

         SECTION 12.14     Counterparts. This Indenture may be executed in
several counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.

         SECTION 12.15     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 Indenture Trustee or any other counsel
reasonably acceptable to the Indenture Trustee and the Insurer) to the effect
that such recording is necessary either for the protection of the Noteholders or
any other Person secured hereunder or for the enforcement of any right or remedy
granted to the Indenture Trustee under this Indenture.

         SECTION 12.16     Trust Obligation. No recourse may be taken, directly
or indirectly, with respect to the obligations of the Issuer, the Owner Trustee
or the Indenture Trustee on the Notes or under this Indenture or any certificate
or other writing delivered in connection herewith or therewith, against (i) the
Indenture Trustee or the Owner Trustee in 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 Indenture
Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or
of any successor or assign of the Indenture Trustee or the Owner Trustee in its
individual capacity, except as any such Person may have expressly agreed (it
being understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their

                                       71

<PAGE>

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 Six, Seven and Eight of the Trust Agreement.

         SECTION 12.17     No Petition. The parties hereto, by entering into
this Indenture, and each Noteholder, by accepting a Note or a beneficial
interest in a Note, hereby covenant and agree that they will not at any time
institute against the Transferor or the Issuer, or join in any institution
against the Seller or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings under
any United States Federal or state bankruptcy or similar law in connection with
any obligations relating to the Notes, this Indenture or any of the other Basic
Documents.

         SECTION 12.18     Inspection. The Issuer agrees that, on reasonable
prior notice, it will permit any representative of the Indenture Trustee or of
the Insurer (so long as it is the Controlling Party), 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 Indenture Trustee and the Insurer
shall and shall cause their respective representatives to hold in confidence all
such information except to the extent disclosure may be required by law (and all
reasonable applications for confidential treatment are unavailing) and except to
the extent that the Indenture Trustee or the Insurer may reasonably determine
that such disclosure is consistent with its obligations hereunder.

         SECTION 12.19     Limitation of Liability of Owner Trustee.
Notwithstanding anything contained herein to the contrary, this instrument has
been countersigned by the Owner Trustee not in its individual capacity but
solely in its capacity as Owner Trustee of the Issuer and in no event shall the
Owner Trustee in its individual capacity or any beneficial owner of the Issuer
have any liability for the representations, warranties, covenants, agreements or
other obligations of the Issuer hereunder, as to all of which recourse shall be
had solely to the assets of the Issuer. 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 VIII, IX, XII and XIV of the Trust Agreement.

         SECTION 12.20     Certain Matters Regarding the Insurer.

         (a)      So long as an Insurer Default shall not have occurred and be
continuing, the Insurer shall have the right to exercise all rights (other than
to receive payments), including voting rights, which the Noteholders or
Certificateholders are entitled to exercise pursuant to this Indenture, without
any consent of such Noteholders or Certificateholders; provided, however, that
without the consent of each Noteholder and Certificateholder affected thereby,
the Insurer shall not exercise such rights to amend this Indenture in any manner
that would (i) reduce the amount of, or delay the timing of, collections of
payments on the Receivables or distributions

                                       72

<PAGE>

which are required to be made on any Note or Certificate, (ii) adversely affect
in any material respect the interests of the Holders of any Notes or
Certificates Instruments, or (iii) alter the rights of any such Holder to
consent to such amendment.

         (b)      Notwithstanding any provision in this Indenture to the
contrary, in the event an Insurer Default shall have occurred and be continuing,
the Insurer shall not have the right to take any action under this Agreement or
to control or direct the actions of the Trust, the Seller, the Indenture Trustee
or the Owner Trustee pursuant to the terms of this Indenture, nor shall the
consent of the Insurer be required with respect to any action (or waiver of a
right to take action) to be taken by the Trust, the Seller, the Indenture
Trustee, the Owner

         SECTION 12.21     No Legal Title in Holders. No Holder of a Note shall
have legal title to any part of the Trust Property. No transfer, by operation of
law or otherwise, of any Note or other right, title and interest of any Holder
of a Note in and to the Trust Property or hereunder shall operate to terminate
this Indenture or the trusts hereunder or entitle any successor or transferee of
such Holder to an accounting or to the transfer to it of legal title to any part
of the Trust Property.

         SECTION 12.22     Sarbanes-Oxley Certifications. The certifications
required by the Sarbanes-Oxley Act of 2002 and the rules of the Securities and
Exchange Commission promulgated thereunder to be included in filings with
respect to the Issuer pursuant to the Securities Exchange Act of 1934, as
amended, shall be made by BVAC, so long as BVAC is the Servicer; if BVAC is no
longer the Servicer, such certifications shall be made by the Transferor. If
BVAC is no longer the Servicer, the Successor Servicer shall provide to the
Transferor all information as the Transferor may reasonably request in order to
fulfill its obligations to make such certifications. In addition, the Indenture
Trustee shall provide to BVAC or the Transferor (whichever of the two is then
required to make such certifications) with a certification signed by a
Responsible Officer stating that such Responsible Officer is not actually aware
(without any independent duty of inquiry or investigation) of any matters which
would cause the certification to be made by BVAC or the Transferor, as the case
may be, to be incorrect.

                                       73

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed and delivered as of the day and year first above written.

                                   BAY VIEW _____ OWNER TRUST

                                   By: [Owner Trust]
                                       not in its individual capacity but solely
                                       on behalf of the Issuer as Owner Trustee
                                       under the Trust Agreement

                                   By:_____________________________________
                                   Name:___________________________________
                                   Title:__________________________________

                                   [INDENTURE TRUSTEE]
                                   not in its individual capacity but solely as
                                   Indenture Trustee

                                   By:_____________________________________
                                   Name:___________________________________
                                   Title:__________________________________

                                       74

<PAGE>

                                   SCHEDULE A

                          FORM OF DEPOSITORY AGREEMENT

<PAGE>

                                   EXHIBIT A-1

                            [FORM OF CLASS A-l NOTE]

PRINCIPAL IN RESPECT OF THIS CLASS A-l NOTE IS DISTRIBUTABLE AS SET FORTH
HEREIN. ACCORDINGLY, THE UNPAID PRINCIPAL AMOUNT OF THE FRACTIONAL INTEREST
EVIDENCED HEREBY AT ANY TIME MAY BE LESS THAN THE ORIGINAL PRINCIPAL AMOUNT SET
FORTH HEREIN.

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 Certificate issued is
registered in the name of Cede & Co. or in such other name as 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 thereof, Cede & Co., has an
interest herein.

PRINCIPAL IN RESPECT OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN.

                           BAY VIEW _____ OWNER TRUST

                  % CLASS A-l AUTOMOBILE RECEIVABLE BACKED NOTE

         Evidencing the indebtedness of the Bay View _____ Owner Trust, a
         Delaware Business Trust, secured by the Pledged Assets, as defined
         below, including a pool of simple and precomputed interest installment
         loan and security agreements and installment sales contracts secured by
         new and used automobiles, light trucks and vans.

         (This Note does not represent an interest in Bay View Transaction
         Corporation nor an interest in or obligation of any of its affiliates.
         Neither this Note nor the underlying Receivables, as defined below, are
         insured or guaranteed by any government agency).

NUMBER                                                               $__________
                                                                CUSIP __________

         Bay View _____ Owner Trust, a Delaware Business Trust, for value
received, hereby promises to pay to the order of [__________] ("the Noteholder")
or its registered assigns, the principal sum of ____________________ dollars
($__________), which amount shall be payable in the amounts and at the times set
forth in the Indenture dated as of __________, (the "Indenture"; such term to
include any amendment, restatement, supplement or other modification thereof or
thereto); provided, however, that the entire unpaid amount of this Note shall be
due and payable on or before __________. However, principal with respect to the
Notes may be paid earlier or later under certain limited circumstances under the
Indenture. The Issuer will pay interest on this Note at the Class A-1 Interest
Rate. Such interest shall be payable in the manner and at the times set forth in
the Indenture. To the extent not otherwise defined herein, the capitalized terms
used herein have the meanings assigned to them in the Indenture. This Note is

                                       1

<PAGE>

issued under and is subject to the terms, provisions, and conditions of the
Indenture, to which the holder of this Note by virtue of the acceptance hereof
assents and by which such holder is bound.

         This Note is secured by the Pledged Assets. The Pledged Assets consist
of a pool of simple and precomputed interest loan and security agreements and
installment sales contracts for new and used automobiles, light-duty trucks,
motorcycles, recreational vehicles and vans (the "Receivables"), all monies paid
thereon, and all monies due thereon, including Accrued Interest (but excluding
Accrued Interest paid on or prior to the Closing Date with respect to such
Receivables), security interests in the vehicles financed thereby, certain bank
accounts and the proceeds thereof, all documents contained in the Receivable
Files, any property that shall have secured a Receivable and that shall have
been acquired by the Indenture Trustee on behalf of the Noteholder, any
Liquidation Proceeds, any rights of the Issuer in proceeds from claims or
refunds of premiums on physical damage, lender's single interest, credit life,
disability and hospitalization insurance policies, if any, covering vehicles
financed thereby and the obligors thereunder, the interest of the Issuer in
recourse to dealers relating to certain of the Receivables, the proceeds of all
of the foregoing and amounts on deposit from time to time in the Spread Account
for the benefit of the Noteholder, and the Policy for the benefit of the
Noteholder.

         Under the Indenture, the Issuer will pay, on the _____ calendar day of
each month, or if such day is not a Business Day, on the first Business Day
thereafter (the" Payment Date"), commencing __________, to the person in whose
name this Note is registered on the Record Date, the portion of Monthly Interest
and Monthly Principal to which the Noteholder is entitled pursuant to the
Indenture.

         Payments on this Note will be made by the Indenture Trustee by wire
transfer through the facilities of the Depository Trust Company if this note is
held by Cede & Co. and otherwise by check mailed to the Person entitled thereto
without the presentation or surrender of this Note or the making of any notation
hereon. Except as otherwise provided in the Indenture and notwithstanding the
above, the final payment on this Note will be made only upon presentation and
surrender of this Note at the office or agency maintained for that purpose by
the Indenture Trustee.

         Unless the certificate of authentication hereon shall have been
executed by a Responsible Officer of the Indenture Trustee, by manual or
facsimile signature, this Note shall not entitle the holder hereof to any
benefit under the Indenture or be valid for any purpose.

         The Note does not represent an interest in the Issuer nor an interest
in or obligation of any affiliate of the Issuer, including Bay View Transaction
Corporation or Bay View Acceptance Corporation. The Note is limited in right of
payment to certain collections and recoveries respecting the Receivables, all as
more specifically set forth in the Indenture. In addition to the Class A-1
Notes, the Issuer has also issued Class A-2 Notes, Class A-3 Notes, Class A-4
Notes and Class B Notes. The Class B Notes are subordinated to the Class A Notes
as provided in the Indenture. The Indenture provides for certain amounts to be
deposited into the Spread Account. In the event amounts available for withdrawal
from the Spread Account are insufficient to make payments relating to this Note
and the other notes issued by the Issuer, the Indenture Trustee will draw on the
Policy up to the Policy Amount to pay such deficiency.

                                       2

<PAGE>

         The Indenture permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Noteholder under the Indenture at any time by the
Issuer and the Indenture Trustee with the consent of the Noteholder. Any such
consent by the holder of this Note shall be conclusive and binding on the
Noteholder.

         This Note is transferable solely in accordance with Section 2.04 of the
Indenture.

         The obligations and responsibilities to the Noteholder created by the
Indenture shall terminate upon the payment to Noteholder of all amounts required
to be paid to it pursuant to the Indenture. The Servicer may at its option cause
the Indenture Trustee to sell the Pledged Assets at a price not to be less than
the price specified in the Trust Agreement, and such sale of the Receivables and
other property may effect early retirement of the Note.

         Although this Note summarizes certain provisions of the Indenture, this
Note does not purport to summarize the Indenture and reference is made to the
Indenture for information with respect to the interests, rights, benefits,
obligations, proceeds and duties evidenced hereby and the rights, duties and
obligations of the Indenture Trustee. In the event of any inconsistency or
conflict between the terms of this Note and the terms of the Indenture, the
terms of the Indenture shall control.

         Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

         IN WITNESS WHEREOF, the Issuer has caused this Note to be duly
executed.

Dated:_______________

                                   BAY VIEW _____ OWNER TRUST
                                   By __________, as Indenture Trustee

                                   By:_____________________________________
                                   Name:___________________________________
                                   Title:__________________________________

                                       3

<PAGE>

                          CERTIFICATE OF AUTHENTICATION

         This is the Note referred to in the within-mentioned Indenture.

____________________, solely in its capacity as Indenture Trustee,

                                   By:_____________________________________
                                   Name:___________________________________
                                   Title:__________________________________

Dated:  ____________________

                                       4

<PAGE>

                                   ASSIGNMENT

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

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

(name and address of assignee)

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

Dated:  ____________________

                                   Signature Guaranteed:________________________

                                        *

* NOTICE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar, which requirements include membership or
participation in STAMP or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Securities Exchange Act of 1934, as amended.

                                       5

<PAGE>

                                   EXHIBIT A-2

                            [FORM OF CLASS A-2 NOTE]

PRINCIPAL IN RESPECT OF THIS CLASS A-2 NOTE IS DISTRIBUTABLE AS SET FORTH
HEREIN. ACCORDINGLY, THE UNPAID PRINCIPAL AMOUNT OF THE FRACTIONAL INTEREST
EVIDENCED HEREBY AT ANY TIME MAY BE LESS THAN THE ORIGINAL PRINCIPAL AMOUNT SET
FORTH HEREIN.

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 Certificate issued is
registered in the name of Cede & Co. or in such other name as 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 thereof, Cede & Co., has an
interest herein.

PRINCIPAL IN RESPECT OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN.

                           BAY VIEW _____ OWNER TRUST

                  % CLASS A-2 AUTOMOBILE RECEIVABLE BACKED NOTE

         Evidencing the indebtedness of the Bay View _____ Owner Trust, a
         Delaware Business Trust, secured by the Pledged Assets, as defined
         below, including a pool of simple and precomputed interest installment
         loan and security agreements and installment sales contracts secured by
         new and used automobiles, light trucks and vans.

         (This Note does not represent an interest in Bay View Transaction
         Corporation nor an interest in or obligation of any of its affiliates.
         Neither this Note nor the underlying Receivables, as defined below, are
         insured or guaranteed by any government agency).

NUMBER                                                               $__________
                                                                CUSIP __________

         Bay View _____ Owner Trust, a Delaware Business Trust, for value
received, hereby promises to pay to the order of [__________] ("the Noteholder")
or its registered assigns, the principal sum of ____________________ dollars
($__________), which amount shall be payable in the amounts and at the times set
forth in the Indenture dated as of __________, (the "Indenture"; such term to
include any amendment, restatement, supplement or other modification thereof or
thereto); provided, however, that the entire unpaid amount of this Note shall be
due and payable on or before ____________________. However, principal with
respect to the Notes may be paid earlier or later under certain limited
circumstances under the Indenture. The Issuer will pay interest on this Note at
the Class A-2 Interest Rate. Such interest shall be payable in the manner and at
the times set forth in the Indenture. To the extent not otherwise defined
herein, the capitalized terms used herein have the meanings assigned to them in
the Indenture. This Note is issued under and is subject to the terms,
provisions, and conditions of the Indenture, to

                                       1

<PAGE>

which the holder of this Note by virtue of the acceptance hereof assents and by
which such holder is bound.

         This Note is secured by the Pledged Assets. The Pledged Assets consist
of a pool of simple and precomputed interest loan and security agreements and
installment sales contracts for new and used automobiles, light-duty trucks,
motorcycles, recreational vehicles and vans (the "Receivables"), all monies paid
thereon, and all monies due thereon, including Accrued Interest (but excluding
Accrued Interest paid on or prior to the Closing Date with respect to such
Receivables), security interests in the vehicles financed thereby, certain bank
accounts and the proceeds thereof, all documents contained in the Receivable
Files, any property that shall have secured a Receivable and that shall have
been acquired by the Indenture Trustee on behalf of the Noteholder, any
Liquidation Proceeds, any rights of the Issuer in proceeds from claims or
refunds of premiums on physical damage, lender's single interest, credit life,
disability and hospitalization insurance policies, if any, covering vehicles
financed thereby and the obligors thereunder, the interest of the Issuer in
recourse to dealers relating to certain of the Receivables, the proceeds of all
of the foregoing and amounts on deposit from time to time in the Spread Account
for the benefit of the Noteholder, and the Policy for the benefit of the
Noteholder.

         Under the Indenture, the Issuer will pay, on the _____ calendar day of
each month, or if such day is not a Business Day, on the first Business Day
thereafter (the" Payment Date"), commencing ____________________, to the person
in whose name this Note is registered on the Record Date, the portion of Monthly
Interest and Monthly Principal to which the Noteholder is entitled pursuant to
the Indenture.

         Payments on this Note will be made by the Indenture Trustee by wire
transfer through the facilities of the Depository Trust Company if this note is
held by Cede & Co. and otherwise by check mailed to the Person entitled thereto
without the presentation or surrender of this Note or the making of any notation
hereon. Except as otherwise provided in the Indenture and notwithstanding the
above, the final payment on this Note will be made only upon presentation and
surrender of this Note at the office or agency maintained for that purpose by
the Indenture Trustee.

         Unless the certificate of authentication hereon shall have been
executed by a Responsible Officer of the Indenture Trustee, by manual or
facsimile signature, this Note shall not entitle the holder hereof to any
benefit under the Indenture or be valid for any purpose.

         The Note does not represent an interest in the Issuer nor an interest
in or obligation of any affiliate of the Issuer, including Bay View Transaction
Corporation or Bay View Acceptance Corporation. The Note is limited in right of
payment to certain collections and recoveries respecting the Receivables, all as
more specifically set forth in the Indenture. In addition to the Class A-2
Notes, the Issuer has also issued Class A-1 Notes, Class A-3 Notes, Class A-4
Notes and Class B Notes. The Class B Notes are subordinated to the Class A Notes
as provided in the Indenture. The Indenture provides for certain amounts to be
deposited into the Spread Account. In the event amounts available for withdrawal
from the Spread Account are insufficient to make payments relating to this Note
and the other notes issued by the Issuer, the Indenture Trustee will draw on the
Policy up to the Policy Amount to pay such deficiency.

                                       2

<PAGE>

         The Indenture permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Noteholder under the Indenture at any time by the
Issuer and the Indenture Trustee with the consent of the Noteholder. Any such
consent by the holder of this Note shall be conclusive and binding on the
Noteholder.

         This Note is transferable solely in accordance with Section 2.04 of the
Indenture.

         The obligations and responsibilities to the Noteholder created by the
Indenture shall terminate upon the payment to Noteholder of all amounts required
to be paid to it pursuant to the Indenture. The Servicer may at its option cause
the Indenture Trustee to sell the Pledged Assets at a price not to be less than
the price specified in the Trust Agreement, and such sale of the Receivables and
other property may effect early retirement of the Note.

         Although this Note summarizes certain provisions of the Indenture, this
Note does not purport to summarize the Indenture and reference is made to the
Indenture for information with respect to the interests, rights, benefits,
obligations, proceeds and duties evidenced hereby and the rights, duties and
obligations of the Indenture Trustee. In the event of any inconsistency or
conflict between the terms of this Note and the terms of the Indenture, the
terms of the Indenture shall control.

         Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

         IN WITNESS WHEREOF, the Issuer has caused this Note to be duly
executed.

Dated:_______________

                                   BAY VIEW _____ OWNER TRUST
                                   By __________, as Indenture Trustee

                                   By:_____________________________________
                                   Name:___________________________________
                                   Title:__________________________________

                                       3

<PAGE>

                          CERTIFICATE OF AUTHENTICATION

         This is the Note referred to in the within-mentioned Indenture.

____________________, solely in its capacity as Indenture Trustee,

                                   By:_____________________________________
                                   Name:___________________________________
                                   Title:__________________________________

Dated:  ____________________

                                       4

<PAGE>

                                   ASSIGNMENT

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

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

(name and address of assignee)

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

Dated:  ____________________

                                   Signature Guaranteed:________________________

                                        *

* NOTICE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar, which requirements include membership or
participation in STAMP or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Securities Exchange Act of 1934, as amended.

                                       5

<PAGE>

                                   EXHIBIT A-3

                            [FORM OF CLASS A-3 NOTE]

PRINCIPAL IN RESPECT OF THIS CLASS A-3 NOTE IS DISTRIBUTABLE AS SET FORTH
HEREIN. ACCORDINGLY, THE UNPAID PRINCIPAL AMOUNT OF THE FRACTIONAL INTEREST
EVIDENCED HEREBY AT ANY TIME MAY BE LESS THAN THE ORIGINAL PRINCIPAL AMOUNT SET
FORTH HEREIN.

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 Certificate issued is
registered in the name of Cede & Co. or in such other name as 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 thereof, Cede & Co., has an
interest herein.

PRINCIPAL IN RESPECT OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN.

                           BAY VIEW _____ OWNER TRUST

                  % CLASS A-3 AUTOMOBILE RECEIVABLE BACKED NOTE

         Evidencing the indebtedness of the Bay View _____ Owner Trust, a
         Delaware Business Trust, secured by the Pledged Assets, as defined
         below, including a pool of simple and precomputed interest installment
         loan and security agreements and installment sales contracts secured by
         new and used automobiles, light trucks and vans.

         (This Note does not represent an interest in Bay View Transaction
         Corporation nor an interest in or obligation of any of its affiliates.
         Neither this Note nor the underlying Receivables, as defined below, are
         insured or guaranteed by any government agency).

NUMBER                                                               $__________
                                                                CUSIP __________

         Bay View _____ Owner Trust, a Delaware Business Trust, for value
received, hereby promises to pay to the order of [__________] ("the Noteholder")
or its registered assigns, the principal sum of ____________________ dollars
($__________), which amount shall be payable in the amounts and at the times set
forth in the Indenture dated as of __________, (the "Indenture"; such term to
include any amendment, restatement, supplement or other modification thereof or
thereto); provided, however, that the entire unpaid amount of this Note shall be
due and payable on or before ____________________. However, principal with
respect to the Notes may be paid earlier or later under certain limited
circumstances under the Indenture. The Issuer will pay interest on this Note at
the Class A-3 Interest Rate. Such interest shall be payable in the manner and at
the times set forth in the Indenture. To the extent not otherwise defined
herein, the capitalized terms used herein have the meanings assigned to them in
the Indenture. This Note is issued under and is subject to the terms,
provisions, and conditions of the Indenture, to

                                       1

<PAGE>

which the holder of this Note by virtue of the acceptance hereof assents and by
which such holder is bound.

         This Note is secured by the Pledged Assets. The Pledged Assets consist
of a pool of simple and precomputed interest loan and security agreements and
installment sales contracts for new and used automobiles, light-duty trucks,
motorcycles, recreational vehicles and vans (the "Receivables"), all monies paid
thereon, and all monies due thereon, including Accrued Interest (but excluding
Accrued Interest paid on or prior to the Closing Date with respect to such
Receivables), security interests in the vehicles financed thereby, certain bank
accounts and the proceeds thereof, all documents contained in the Receivable
Files, any property that shall have secured a Receivable and that shall have
been acquired by the Indenture Trustee on behalf of the Noteholder, any
Liquidation Proceeds, any rights of the Issuer in proceeds from claims or
refunds of premiums on physical damage, lender's single interest, credit life,
disability and hospitalization insurance policies, if any, covering vehicles
financed thereby and the obligors thereunder, the interest of the Issuer in
recourse to dealers relating to certain of the Receivables, the proceeds of all
of the foregoing and amounts on deposit from time to time in the Spread Account
for the benefit of the Noteholder, and the Policy for the benefit of the
Noteholder.

         Under the Indenture, the Issuer will pay, on the _____ calendar day of
each month, or if such day is not a Business Day, on the first Business Day
thereafter (the" Payment Date"), commencing ____________________, to the person
in whose name this Note is registered on the Record Date, the portion of Monthly
Interest and Monthly Principal to which the Noteholder is entitled pursuant to
the Indenture.

         Payments on this Note will be made by the Indenture Trustee by wire
transfer through the facilities of the Depository Trust Company if this note is
held by Cede & Co. and otherwise by check mailed to the Person entitled thereto
without the presentation or surrender of this Note or the making of any notation
hereon. Except as otherwise provided in the Indenture and notwithstanding the
above, the final payment on this Note will be made only upon presentation and
surrender of this Note at the office or agency maintained for that purpose by
the Indenture Trustee.

         Unless the certificate of authentication hereon shall have been
executed by a Responsible Officer of the Indenture Trustee, by manual or
facsimile signature, this Note shall not entitle the holder hereof to any
benefit under the Indenture or be valid for any purpose.

         The Note does not represent an interest in the Issuer nor an interest
in or obligation of any affiliate of the Issuer, including Bay View Transaction
Corporation or Bay View Acceptance Corporation. The Note is limited in right of
payment to certain collections and recoveries respecting the Receivables, all as
more specifically set forth in the Indenture. In addition to the Class A-3
Notes, the Issuer has also issued Class A-1 Notes, Class A-2 Notes, Class A-4
Notes and Class B Notes. The Class B Notes are subordinated to the Class A Notes
as provided in the Indenture. The Indenture provides for certain amounts to be
deposited into the Spread Account. In the event amounts available for withdrawal
from the Spread Account are insufficient to make payments relating to this Note
and the other notes issued by the Issuer, the Indenture Trustee will draw on the
Policy up to the Policy Amount to pay such deficiency.

                                       2

<PAGE>

         The Indenture permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Noteholder under the Indenture at any time by the
Issuer and the Indenture Trustee with the consent of the Noteholder. Any such
consent by the holder of this Note shall be conclusive and binding on the
Noteholder.

         This Note is transferable solely in accordance with Section 2.04 of the
Indenture.

         The obligations and responsibilities to the Noteholder created by the
Indenture shall terminate upon the payment to Noteholder of all amounts required
to be paid to it pursuant to the Indenture. The Servicer may at its option cause
the Indenture Trustee to sell the Pledged Assets at a price not to be less than
the price specified in the Trust Agreement, and such sale of the Receivables and
other property may effect early retirement of the Note.

         Although this Note summarizes certain provisions of the Indenture, this
Note does not purport to summarize the Indenture and reference is made to the
Indenture for information with respect to the interests, rights, benefits,
obligations, proceeds and duties evidenced hereby and the rights, duties and
obligations of the Indenture Trustee. In the event of any inconsistency or
conflict between the terms of this Note and the terms of the Indenture, the
terms of the Indenture shall control.

         Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

         IN WITNESS WHEREOF, the Issuer has caused this Note to be duly
executed.

Dated:_______________

                                   BAY VIEW _____ OWNER TRUST
                                   By __________, as Indenture Trustee

                                   By:_____________________________________
                                   Name:___________________________________
                                   Title:__________________________________

                                       3

<PAGE>

                          CERTIFICATE OF AUTHENTICATION

         This is the Note referred to in the within-mentioned Indenture.

____________________, solely in its capacity as Indenture Trustee,

                                   By:_____________________________________
                                   Name____________________________________
                                   Title:__________________________________

Dated:  ____________________

                                       4

<PAGE>

                                   ASSIGNMENT

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

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

(name and address of assignee)

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

Dated:  ____________________

                                   Signature Guaranteed:________________________

                                        *

* NOTICE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar, which requirements include membership or
participation in STAMP or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Securities Exchange Act of 1934, as amended.

                                       5

<PAGE>

                                   EXHIBIT A-4

                            [FORM OF CLASS A-4 NOTE]

PRINCIPAL IN RESPECT OF THIS CLASS A-4 NOTE IS DISTRIBUTABLE AS SET FORTH
HEREIN. ACCORDINGLY, THE UNPAID PRINCIPAL AMOUNT OF THE FRACTIONAL INTEREST
EVIDENCED HEREBY AT ANY TIME MAY BE LESS THAN THE ORIGINAL PRINCIPAL AMOUNT SET
FORTH HEREIN.

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 Certificate issued is
registered in the name of Cede & Co. or in such other name as 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 thereof, Cede & Co., has an
interest herein.

PRINCIPAL IN RESPECT OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN.

                           BAY VIEW _____ OWNER TRUST

                  % CLASS A-4 AUTOMOBILE RECEIVABLE BACKED NOTE

         Evidencing the indebtedness of the Bay View _____ Owner Trust, a
         Delaware Business Trust, secured by the Pledged Assets, as defined
         below, including a pool of simple and precomputed interest installment
         loan and security agreements and installment sales contracts secured by
         new and used automobiles, light trucks and vans.

         (This Note does not represent an interest in Bay View Transaction
         Corporation nor an interest in or obligation of any of its affiliates.
         Neither this Note nor the underlying Receivables, as defined below, are
         insured or guaranteed by any government agency).

NUMBER                                                               $__________
                                                                CUSIP __________

         Bay View _____ Owner Trust, a Delaware Business Trust, for value
received, hereby promises to pay to the order of [__________] ("the Noteholder")
or its registered assigns, the principal sum of ____________________ dollars
($__________), which amount shall be payable in the amounts and at the times set
forth in the Indenture dated as of __________, (the "Indenture"; such term to
include any amendment, restatement, supplement or other modification thereof or
thereto); provided, however, that the entire unpaid amount of this Note shall be
due and payable on or before ____________________. However, principal with
respect to the Notes may be paid earlier or later under certain limited
circumstances under the Indenture. The Issuer will pay interest on this Note at
the Class A-4 Interest Rate. Such interest shall be payable in the manner and at
the times set forth in the Indenture. To the extent not otherwise defined
herein, the capitalized terms used herein have the meanings assigned to them in
the Indenture. This Note is issued under and is subject to the terms,
provisions, and conditions of the Indenture, to

                                       1

<PAGE>

which the holder of this Note by virtue of the acceptance hereof assents and by
which such holder is bound.

         This Note is secured by the Pledged Assets. The Pledged Assets consist
of a pool of simple and precomputed interest loan and security agreements and
installment sales contracts for new and used automobiles, light-duty trucks,
motorcycles, recreational vehicles and vans (the "Receivables"), all monies paid
thereon, and all monies due thereon, including Accrued Interest (but excluding
Accrued Interest paid on or prior to the Closing Date with respect to such
Receivables), security interests in the vehicles financed thereby, certain bank
accounts and the proceeds thereof, all documents contained in the Receivable
Files, any property that shall have secured a Receivable and that shall have
been acquired by the Indenture Trustee on behalf of the Noteholder, any
Liquidation Proceeds, any rights of the Issuer in proceeds from claims or
refunds of premiums on physical damage, lender's single interest, credit life,
disability and hospitalization insurance policies, if any, covering vehicles
financed thereby and the obligors thereunder, the interest of the Issuer in
recourse to dealers relating to certain of the Receivables, the proceeds of all
of the foregoing and amounts on deposit from time to time in the Spread Account
for the benefit of the Noteholder, and the Policy for the benefit of the
Noteholder.

         Under the Indenture, the Issuer will pay, on the _____ calendar day of
each month, or if such day is not a Business Day, on the first Business Day
thereafter (the" Payment Date"), commencing ____________________, to the person
in whose name this Note is registered on the Record Date, the portion of Monthly
Interest and Monthly Principal to which the Noteholder is entitled pursuant to
the Indenture.

         Payments on this Note will be made by the Indenture Trustee by wire
transfer through the facilities of the Depository Trust Company if this note is
held by Cede & Co. and otherwise by check mailed to the Person entitled thereto
without the presentation or surrender of this Note or the making of any notation
hereon. Except as otherwise provided in the Indenture and notwithstanding the
above, the final payment on this Note will be made only upon presentation and
surrender of this Note at the office or agency maintained for that purpose by
the Indenture Trustee.

         Unless the certificate of authentication hereon shall have been
executed by a Responsible Officer of the Indenture Trustee, by manual or
facsimile signature, this Note shall not entitle the holder hereof to any
benefit under the Indenture or be valid for any purpose.

         The Note does not represent an interest in the Issuer nor an interest
in or obligation of any affiliate of the Issuer, including Bay View Transaction
Corporation or Bay View Acceptance Corporation. The Note is limited in right of
payment to certain collections and recoveries respecting the Receivables, all as
more specifically set forth in the Indenture. In addition to the Class A-4
Notes, the Issuer has also issued Class A-1 Notes, Class A-2 Notes, Class A-3
Notes and Class B Notes. The Class B Notes are subordinated to the Class A Notes
as provided in the Indenture. The Indenture provides for certain amounts to be
deposited into the Spread Account. In the event amounts available for withdrawal
from the Spread Account are insufficient to make payments relating to this Note
and the other notes issued by the Issuer, the Indenture Trustee will draw on the
Policy up to the Policy Amount to pay such deficiency.

                                       2

<PAGE>

         The Indenture permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Noteholder under the Indenture at any time by the
Issuer and the Indenture Trustee with the consent of the Noteholder. Any such
consent by the holder of this Note shall be conclusive and binding on the
Noteholder.

         This Note is transferable solely in accordance with Section 2.04 of the
Indenture.

         The obligations and responsibilities to the Noteholder created by the
Indenture shall terminate upon the payment to Noteholder of all amounts required
to be paid to it pursuant to the Indenture. The Servicer may at its option cause
the Indenture Trustee to sell the Pledged Assets at a price not to be less than
the price specified in the Trust Agreement, and such sale of the Receivables and
other property may effect early retirement of the Note.

         Although this Note summarizes certain provisions of the Indenture, this
Note does not purport to summarize the Indenture and reference is made to the
Indenture for information with respect to the interests, rights, benefits,
obligations, proceeds and duties evidenced hereby and the rights, duties and
obligations of the Indenture Trustee. In the event of any inconsistency or
conflict between the terms of this Note and the terms of the Indenture, the
terms of the Indenture shall control.

         Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

         IN WITNESS WHEREOF, the Issuer has caused this Note to be duly
executed.

Dated:_______________

                                   BAY VIEW _____ OWNER TRUST
                                   By __________, as Indenture Trustee

                                   By:_____________________________________
                                   Name____________________________________
                                   Title:__________________________________

                                       3

<PAGE>

                          CERTIFICATE OF AUTHENTICATION

         This is the Note referred to in the within-mentioned Indenture.

____________________, solely in its capacity as Indenture Trustee,

                                   By:_____________________________________
                                   Name____________________________________
                                   Title:__________________________________

Dated:  ____________________

                                       4

<PAGE>

                                   ASSIGNMENT

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

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

(name and address of assignee)

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

Dated:  ____________________

                                   Signature Guaranteed:________________________

                                        *

* NOTICE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar, which requirements include membership or
participation in STAMP or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Securities Exchange Act of 1934, as amended.

                                       5

<PAGE>

                                    EXHIBIT B

                             [FORM OF CLASS B NOTE]

PRINCIPAL IN RESPECT OF THIS CLASS B NOTE IS DISTRIBUTABLE AS SET FORTH HEREIN.
ACCORDINGLY, THE UNPAID PRINCIPAL AMOUNT OF THE FRACTIONAL INTEREST EVIDENCED
HEREBY AT ANY TIME MAY BE LESS THAN THE ORIGINAL PRINCIPAL AMOUNT SET FORTH
HEREIN.

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 Certificate issued is
registered in the name of Cede & Co. or in such other name as 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 thereof, Cede & Co., has an
interest herein.

PRINCIPAL IN RESPECT OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN.

                           BAY VIEW _____ OWNER TRUST

                   % CLASS B AUTOMOBILE RECEIVABLE BACKED NOTE

         Evidencing the indebtedness of the Bay View _____ Owner Trust, a
         Delaware Business Trust, secured by the Pledged Assets, as defined
         below, including a pool of simple and precomputed interest installment
         loan and security agreements and installment sales contracts secured by
         new and used automobiles, light trucks and vans.

         (This Note does not represent an interest in Bay View Transaction
         Corporation nor an interest in or obligation of any of its affiliates.
         Neither this Note nor the underlying Receivables, as defined below, are
         insured or guaranteed by any government agency).

NUMBER                                                               $__________
                                                                CUSIP __________

         Bay View _____ Owner Trust, a Delaware Business Trust, for value
received, hereby promises to pay to the order of [__________] ("the Noteholder")
or its registered assigns, the principal sum of ____________________ dollars
($__________), which amount shall be payable in the amounts and at the times set
forth in the Indenture dated as of __________, (the "Indenture"; such term to
include any amendment, restatement, supplement or other modification thereof or
thereto); provided, however, that the entire unpaid amount of this Note shall be
due and payable on or before ____________________. However, principal with
respect to the Notes may be paid earlier or later under certain limited
circumstances under the Indenture. The Issuer will pay interest on this Note at
the Class B Interest Rate. Such interest shall be payable in the manner and at
the times set forth in the Indenture. To the extent not otherwise defined
herein, the capitalized terms used herein have the meanings assigned to them in
the Indenture. This Note is issued under and is subject to the terms,
provisions, and conditions of the Indenture, to

                                       1

<PAGE>

which the holder of this Note by virtue of the acceptance hereof assents and by
which such holder is bound.

         This Note is secured by the Pledged Assets. The Pledged Assets consist
of a pool of simple and precomputed interest loan and security agreements and
installment sales contracts for new and used automobiles, light-duty trucks,
motorcycles, recreational vehicles and vans (the "Receivables"), all monies paid
thereon, and all monies due thereon, including Accrued Interest (but excluding
Accrued Interest paid on or prior to the Closing Date with respect to such
Receivables), security interests in the vehicles financed thereby, certain bank
accounts and the proceeds thereof, all documents contained in the Receivable
Files, any property that shall have secured a Receivable and that shall have
been acquired by the Indenture Trustee on behalf of the Noteholder, any
Liquidation Proceeds, any rights of the Issuer in proceeds from claims or
refunds of premiums on physical damage, lender's single interest, credit life,
disability and hospitalization insurance policies, if any, covering vehicles
financed thereby and the obligors thereunder, the interest of the Issuer in
recourse to dealers relating to certain of the Receivables, the proceeds of all
of the foregoing and amounts on deposit from time to time in the Spread Account
for the benefit of the Noteholder, and the Policy for the benefit of the
Noteholder.

         Under the Indenture, the Issuer will pay, on the _____ calendar day of
each month, or if such day is not a Business Day, on the first Business Day
thereafter (the" Payment Date"), commencing ____________________, to the person
in whose name this Note is registered on the Record Date, the portion of Monthly
Interest and Monthly Principal to which the Noteholder is entitled pursuant to
the Indenture.

         Payments on this Note will be made by the Indenture Trustee by wire
transfer through the facilities of the Depository Trust Company if this note is
held by Cede & Co. and otherwise by check mailed to the Person entitled thereto
without the presentation or surrender of this Note or the making of any notation
hereon. Except as otherwise provided in the Indenture and notwithstanding the
above, the final payment on this Note will be made only upon presentation and
surrender of this Note at the office or agency maintained for that purpose by
the Indenture Trustee.

         Unless the certificate of authentication hereon shall have been
executed by a Responsible Officer of the Indenture Trustee, by manual or
facsimile signature, this Note shall not entitle the holder hereof to any
benefit under the Indenture or be valid for any purpose.

         The Note does not represent an interest in the Issuer nor an interest
in or obligation of any affiliate of the Issuer, including Bay View Transaction
Corporation or Bay View Acceptance Corporation. The Note is limited in right of
payment to certain collections and recoveries respecting the Receivables, all as
more specifically set forth in the Indenture. In addition to the Class B Notes,
the Issuer has also issued Class A-1 Notes, Class A-2 Notes, Class A-3 Notes and
Class A-4 Notes. The Class B Notes are subordinated to the Class A Notes as
provided in the Indenture. The Indenture provides for certain amounts to be
deposited into the Spread Account. In the event amounts available for withdrawal
from the Spread Account are insufficient to make payments relating to this Note
and the other notes issued by the Issuer, the Indenture Trustee will draw on the
Policy up to the Policy Amount to pay such deficiency.

                                       2

<PAGE>

         The Indenture permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Noteholder under the Indenture at any time by the
Issuer and the Indenture Trustee with the consent of the Noteholder. Any such
consent by the holder of this Note shall be conclusive and binding on the
Noteholder.

         This Note is transferable solely in accordance with Section 2.04 of the
Indenture.

         The obligations and responsibilities to the Noteholder created by the
Indenture shall terminate upon the payment to Noteholder of all amounts required
to be paid to it pursuant to the Indenture. The Servicer may at its option cause
the Indenture Trustee to sell the Pledged Assets at a price not to be less than
the price specified in the Trust Agreement, and such sale of the Receivables and
other property may effect early retirement of the Note.

         Although this Note summarizes certain provisions of the Indenture, this
Note does not purport to summarize the Indenture and reference is made to the
Indenture for information with respect to the interests, rights, benefits,
obligations, proceeds and duties evidenced hereby and the rights, duties and
obligations of the Indenture Trustee. In the event of any inconsistency or
conflict between the terms of this Note and the terms of the Indenture, the
terms of the Indenture shall control.

         Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

         IN WITNESS WHEREOF, the Issuer has caused this Note to be duly
executed.

Dated:_______________

                                   BAY VIEW _____ OWNER TRUST
                                   By __________, as Indenture Trustee

                                   By:_____________________________________
                                   Name____________________________________
                                   Title:__________________________________

                                       3

<PAGE>

                          CERTIFICATE OF AUTHENTICATION

         This is the Note referred to in the within-mentioned Indenture.

____________________, solely in its capacity as Indenture Trustee,

                                   By:_____________________________________
                                   Name____________________________________
                                   Title:__________________________________

Dated:  ____________________

                                       4

<PAGE>

                                   ASSIGNMENT

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

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

(name and address of assignee)

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

Dated:  ____________________

                                   Signature Guaranteed:________________________

                                        *

* NOTICE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar, which requirements include membership or
participation in STAMP or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Securities Exchange Act of 1934, as amended.

                                       5

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