Document:

EXECUTION COPY

                         UAC SECURITIZATION CORPORATION
                                     Seller

                          UNION ACCEPTANCE CORPORATION
                                    Servicer

                                       and

                 FIRST UNION TRUST COMPANY, NATIONAL ASSOCIATION
                                  Owner Trustee

                         TRUST AND SERVICING AGREEMENT,

                          Dated as of February 24, 2001

                            UACSC 2001-A Owner Trust

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page

ARTICLE I  Creation of Trust ..................................................5

    SECTION 1.01. Name  .......................................................5
    SECTION 1.02. Office ......................................................5
    SECTION 1.03. Purposes and Powers. ........................................5
    SECTION 1.04. Appointment of Owner Trustee ................................6
    SECTION 1.05. Initial Capital Contribution of Trust Estate ................6
    SECTION 1.06. Declaration of Trust ........................................6
    SECTION 1.07. Title to Trust Property .....................................7
    SECTION 1.08. Situs of Trust ..............................................7

    ARTICLE II  Definitions ...................................................7

    SECTION 2.01.  Definitions .............................................. .7
    SECTION 2.02.  Usage of Terms ............................................19
    SECTION 2.03.  Closing Date and Record Date ..............................19
    SECTION 2.04.  Section References ........................................19

    ARTICLE III  Conveyance of Receivables ...................................19

    SECTION 3.01.  Conveyance of Initial Receivables .........................19
    SECTION 3.02.  Conveyance of Subsequent Receivables ......................20

    ARTICLE IV  Acceptance by Trustee ........................................24

    ARTICLE V  Information Delivered to the Rating Agencies ..................24

    ARTICLE VI  Agent for Service ............................................25

    ARTICLE VII  The Receivables .............................................25

    SECTION 7.01.  Representations and Warranties of Seller ..................25
    SECTION 7.02.  Repurchase Upon Breach ....................................26
    SECTION 7.03.  Custody of Receivable Files ...............................26
    SECTION 7.04.  Duties of Servicer as Custodian ...........................27
    SECTION 7.05.  Instructions; Authority to Act ............................28
    SECTION 7.06.  Custodian's Indemnification ...............................28
    SECTION 7.07.  Effective Period and Termination ..........................28

    ARTICLE VIII  Administration and Servicing of Receivables ................28

    SECTION 8.01.  Duties of Servicer ........................................28
    SECTION 8.02.  Collection of Receivable Payments .........................29
    SECTION 8.03.  Realization Upon Receivables ..............................30
    SECTION 8.04.  Physical Damage Insurance .................................30
    SECTION 8.05.  Maintenance of Security Interests in Financed Vehicles ....30
    SECTION 8.06.  Covenants of Servicer .....................................31
    SECTION 8.07.  Purchase of Receivables Upon Breach .......................31
    SECTION 8.08.  Servicing Fee .............................................31
    SECTION 8.09.  Servicer's Certificate ....................................32
    SECTION 8.10.  Annual Statement as to Compliance; Notice of Default ......32
    SECTION 8.11.  Annual Independent Certified Public Accountant's Report ...33
    SECTION 8.12.  Access to Certain Documentation and Information Regarding
                                Receivables ..................................33
    SECTION 8.13.  Servicer Expenses .........................................33
    SECTION 8.14.  Reports to Noteholders ....................................34

    ARTICLE IX  Collections; Distributions to Noteholders and
                                Certificateholder ............................34

    SECTION 9.01.  Collection Account ........................................34
    SECTION 9.02.  Collections .............................................. 34
    SECTION 9.03.  Purchase Amounts ..........................................35
    SECTION 9.04.  Application of Funds ......................................35
    SECTION 9.05.  Advances ..............................................    37
    SECTION 9.06.  Net Deposits ..............................................37
    SECTION 9.07.  No Segregation of Moneys; No Interest .....................37
    SECTION 9.08.  Accounting and Reports to the Certificateholder,
                                the Internal Revenue Service and Others ......37
    SECTION 9.09.  Payahead Account ..........................................38
    SECTION 9.10.  Pre-Funding Account .......................................39

    ARTICLE X  Intentionally Blank ...........................................39

    ARTICLE XI  The Certificate ..............................................39

    SECTION 11.01.  The Certificate ..........................................39
    SECTION 11.02.  Authentication of Certificate ............................39
    SECTION 11.03.  Registration of Transfer and Exchange of Certificate .....39
    SECTION 11.04.  Mutilated, Destroyed, Lost, or Stolen Certificates .......40

    ARTICLE XII  The Seller ..............................................    41

    SECTION 12.01.  Representations and Undertakings of Seller ...............41
    SECTION 12.02.  Liability of Seller; Indemnities .........................43
    SECTION 12.03.  Merger or Consolidation of, or Assumption of the
                                Obligations of Seller ........................44
    SECTION 12.04.  Limitation on Liability of Seller and Others .............45

    ARTICLE XIII  The Servicer .............................................. 45

    SECTION 13.01.  Representations of Servicer ..............................45
    SECTION 13.02.  Indemnities of Servicer ..................................46
    SECTION 13.03.  Merger or Consolidation of, or Assumption of the
                                Obligations of Servicer ......................48
    SECTION 13.04.  Limitation on Liability of Servicer and Others ...........48
    SECTION 13.05.  Servicer Not to Resign ...................................49
    SECTION 13.06.  Delegation of Duties .....................................49

    ARTICLE XIV  Servicer Default ............................................49

    SECTION 14.01.  Events of Servicer Default ...............................49
    SECTION 14.02.  Appointment of Successor .................................51
    SECTION 14.03.  Notice of Events of Servicer Default .....................52
    SECTION 14.04.  Waiver of Past Defaults ..................................52

    ARTICLE XV  The Owner Trustee ............................................53

    SECTION 15.01.  Duties of Owner Trustee ..................................53
    SECTION 15.02.  Owner Trustee's Certificate ..............................55
    SECTION 15.03.  Trust's Assignment of Purchased Receivables ..............55
    SECTION 15.04.  Certain Matters Affecting the Owner Trustee ..............56
    SECTION 15.05.  Owner Trustee Not Liable for Certificate or Receivables ..57
    SECTION 15.06.  Owner Trustee May Own Notes ..............................58
    SECTION 15.07.  Owner Trustee's and Indenture Trustee's Fees
                                and Expenses; Indemnification ................58
    SECTION 15.08.  Eligibility Requirements for Owner Trustee ...............59
    SECTION 15.09.  Resignation or Removal of Owner Trustee ..................59
    SECTION 15.10.  Successor Owner Trustee ..................................60
    SECTION 15.11.  Merger or Consolidation of Owner Trustee .................61
    SECTION 15.12.  Appointment of Co-Trustee or Separate Owner Trustee ......61
    SECTION 15.13.  Representations and Warranties of Owner Trustee ..........62

    ARTICLE XVI  Termination ..............................................   63

    SECTION 16.01.  Termination of the Trust .................................63
    SECTION 16.02.  Optional Disposition of All Receivables ..................63

    ARTICLE XVII  Miscellaneous Provisions ...................................64

    SECTION 17.01.  Amendment ..............................................  64
    SECTION 17.02.  Protection of Title to Trust .............................65
    SECTION 17.03.  Limitation on Rights of Certificateholder ................67
    SECTION 17.04.  Governing Law ............................................68
    SECTION 17.05.  Notices ..............................................    68
    SECTION 17.06.  Severability of Provisions ...............................68
    SECTION 17.07.  Assignment .............................................. 69
    SECTION 17.08.  Certificate Nonassessable and Fully Paid .................69
    SECTION 17.09.  Nonpetition Covenant .....................................69
    SECTION 17.10.  Counterparts .............................................69
    SECTION 17.11.  Third Party Beneficiary ..................................64

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 4    -    Form of Subsequent Transfer Assignment
EXHIBIT A    -    Form of Certificate of Trust
EXHIBIT B    -    Form of Certificate

SCHEDULE A   -    Schedule of Receivables
SCHEDULE B   -    Location of Receivables

         This TRUST AND SERVICING  AGREEMENT,  dated as of February 24, 2001, is
made with respect to the  formation  of the UACSC 2001-A Owner Trust,  among UAC
SECURITIZATION CORPORATION, a Delaware corporation, as depositor (the "Seller"),
UNION  ACCEPTANCE  CORPORATION,   an  Indiana  corporation,   as  servicer  (the
"Servicer"),  and FIRST UNION TRUST COMPANY,  NATIONAL  ASSOCIATION,  a national
banking  corporation  with its  principal  place  of  business  in the  State of
Delaware, as owner trustee (in such capacity 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 UACSC 2001-A Owner Trust.

         SECTION 1.01.  Name.  The Trust created hereby shall be known as "UACSC
2001-A Owner  Trust",  in which name the Owner  Trustee may conduct the business
and affairs of the Trust,  make and execute  contracts and other  instruments on
behalf of the Trust and sue and be sued on behalf of the Trust.  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  Certificateholder,  the
Servicer, the Seller, 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
         Certificate  pursuant to this  Agreement  and to sell or  transfer  the
         Notes and the Certificate in one or more transactions;

                  (ii)  with  the  proceeds  of the  sale of the  Notes  and the
         Certificate,  to purchase the Initial  Receivables  and the  Subsequent
         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  Certificateholder  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;

                  (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
         Certificateholder,  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 Basic Documents.

         SECTION 1.04.  Appointment of Owner Trustee. The Seller 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
Business Trust Act.

         SECTION 1.05. Initial Capital  Contribution of Trust Estate. The Seller
hereby sells, assigns, transfers,  conveys and sets over to the Trust, as of the
date hereof,  the Trust estate.  The Owner Trustee on behalf of the Trust hereby
acknowledges  receipt in trust from the Seller,  as of the date  hereof,  of the
foregoing  contribution,  which shall  constitute the initial Trust estate.  The
Seller 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  Certificateholder,  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
the Delaware Business Trust Act and that this Agreement constitute the governing
instrument of such Trust. Furthermore, it is the intention of the parties hereto
that, solely for federal,  state and local income and franchise tax purposes (i)
so long as there is a sole Certificateholder,  the Trust shall be disregarded as
a separate  entity,  with the assets of the Trust being treated as the assets of
such sole  Certificateholder,  and the Notes being non-recourse debt of the sole
Certificateholder,  and (ii) if there is more  than one  Certificateholder,  the
Trust  shall be treated  as a  partnership,  with the assets of the  partnership
being  the  Trust   estate,   the   partners  of  the   partnership   being  the
Certificateholders and the Notes being non-recourse debt of the partnership. The
Trust shall not elect to be treated as an association under Treasury Regulations
Section  301.7701-3(a) for federal income tax purposes.  The parties agree that,
unless   otherwise   required  by   appropriate   tax   authorities,   the  sole
Certificateholder or the Administrator on behalf of the Trust will file or cause
to be  filed  annual  or  other  necessary  returns,  reports  and  other  forms
consistent  with the  characterization  of the Trust as  provided  in the second
preceding sentence for such tax purposes.  The Owner Trustee,  the Seller as the
initial  Certificateholder and each successor  Certificateholder (as a condition
to acquiring its Certificate)  agree to disregard the trust as a separate entity
(if there is one  Certificateholder)  or to treat it as a partnership  (if there
are two or more  Certificateholders)  and to treat the Notes as indebtedness for
purposes of federal, state, and local income or franchise taxes.

         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 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.

<PAGE>

                                   ARTICLE II

                                   Definitions

         SECTION  2.01.  Definitions.  Capitalized  terms which are used in this
Agreement  but are not defined  herein shall have the  meanings  provided in the
Indenture.  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 February 24, 2001,  between the Trust and the  Administrator and acknowledged
by the Indenture Trustee.

         "Administrator"   means  the  Administrator  under  the  Administration
Agreement, which is initially UAC, 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.

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

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

         "Approved  Rating" means a short-term rating of P-1 by Moody's and A-l+
by Standard & Poor's.

         "Available   Funds"  means  the  amount  defined  as  such  in  Section
9.04(a)(i).

         "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 on such
Payment Date pursuant to Article IX of the Indenture.

         "Basic Documents" has the meaning provided in the Indenture.

         "Business Day" means, unless otherwise specified,  any day other than a
Saturday,  a  Sunday  or a day on  which  banking  institutions  in  Wilmington,
Delaware,  Chicago,  Illinois  or New York,  New York (or, if the  Servicer  has
provided  prior  written  notice to each of the  Owner  Trustee,  the  Indenture
Trustee and the  Insurer  that such day is not a Business  Day, in Little  Rock,
Arkansas or  Indianapolis,  Indiana)  shall be  authorized  or obligated by law,
executive order, or governmental decree to be closed.

         "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 11.03.

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

         "Closing Date" means March 12, 2001.

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

         "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  March  2001,  and (ii)
thereafter,  each calendar month,  until the Trust shall  terminate  pursuant to
Article XVI.

         "Consolidated  Net Income" means, for any period,  the consolidated net
income of UAC and its subsidiaries  determined in accordance with GAAP and, with
respect to  Consolidated  Net Income for any fiscal  year,  as reported in UAC's
audited consolidated financial statements.

         "Consolidated  Tangible  Net Worth"  means the  excess,  if any, of the
consolidated   assets  of  UAC  and  its  subsidiaries   over  the  consolidated
liabilities  of UAC  and  its  subsidiaries  less  any  goodwill,  trade  names,
trademarks,   patents,   unamortized  debt  discount  and  expense,   and  other
intangibles,  except that dealer premium rebates and excess  servicing shall not
be so deducted, determined in accordance with GAAP.

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

         "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 One
Rodney  Square,  Suite 102, 920 King Street,  Wilmington,  DE 19801,  Attention:
Corporate Trust Administration, Telecopy (302) 888-7544 or at such other address
as the  Owner  Trustee  may  designate  from  time  to  time  by  notice  to the
Certificateholder, the Seller, the Servicer and the Indenture Trustee.

         "Cutoff  Date"  means,  individually,  the  Initial  Cutoff  Date  or a
particular Subsequent Cutoff Date.

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

         "Defaulted  Receivable"  means, for any Collection Period, a Receivable
as to which the earliest to occur of any of the following has occurred:  (i) any
payment, or part thereof, in excess of $10.00 was delinquent 120 days or more as
of the last  day of such  Collection  Period,  (ii) the  Financed  Vehicle  that
secures  the  Receivable  has  been  repossessed,  or  (iii)  the  Servicer  has
determined  that  the  Receivable  is   uncollectible  in  accordance  with  the
Servicer's  customary  practices  on or before  the last day of such  Collection
Period;  provided,  however,  that "Defaulted  Receivable" shall not include any
Receivable  that is to be  repurchased  pursuant  to Section  7.02 or  purchased
pursuant to Section 8.07; 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.

         "Delaware Business Trust Act" means the Delaware Business Trust Act, 12
Del. C.ss.3801 et seq.

         "Determination  Date" means,  for each  Collection  Period,  the second
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 and examination by Federal or State  authorities and which (i) has a
long-term  unsecured  debt  rating  of at least  Baa3  from  Moody's  or (ii) is
approved by 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, the Federal National Mortgage Association, or
         any  agency or  instrumentality  of the United  States of  America  the
         obligations  of which are  backed by the full  faith and  credit of the
         United States of America;

                  (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  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;

                  (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 with an Approved Rating and acceptable to
         the Rating  Agencies  and the  Insurer  (so long as no Insurer  Default
         shall  have  occurred  and be  continuing  and the  Policy  shall be in
         effect), provided that the Owner Trustee or the Indenture Trustee shall
         have  received  written  notice from the Rating  Agencies 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
         Aaa by Moody's or AAAm by Standard & Poor's (including the money market
         funds  of  the  Owner  Trustee  and  the  Indenture  Trustee  in  their
         commercial capacities); 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 14.01.

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

         "Funding  Period"  means the  period  beginning  on and  including  the
Closing  Date and  ending  on the  first  to occur of (i) the date on which  the
amount  on  deposit  in the  Pre-Funding  Account  (after  giving  effect to any
transfers therefrom in connection with the transfer of Subsequent Receivables to
the Trust) is less than  $100,000,  (ii) the date on which an Event of  Default,
Event of Servicer  Default or Trigger Event  occurs,  (iii) the date on which an
Insolvency Event occurs with respect to the Seller or (iv) the close of business
on April 30, 2001.

         "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 February 24, 2001,  between
the Trust and the  Indenture  Trustee,  which  provides  for the issuance of the
Notes.

         "Indenture  Trustee"  means BNY  Midwest  Trust  Company,  an  Illinois
banking corporation,  in its role as Indenture Trustee under the Indenture,  and
its permitted successors and assigns.

         "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 2 North LaSalle Street, 10th
Floor,  Chicago,  Illinois 60602,  Attention:  Corporate  Trust  Administration,
Telecopy  (312)  827-8562 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.

         "Initial Cutoff Date" means February 23, 2001.

         "Initial Pre-Funded Amount" means $142,996,839.51.

         "Initial  Receivables"  means the Receivables  conveyed to the Trust by
the Seller, listed as of the Initial Cutoff Date in Schedule A hereto.

         "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,
marshalling  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,  marshalling  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.

         "Insurance Agreement" means the Insurance and Reimbursement  Agreement,
dated as of the Closing Date, among the Trust, the Seller,  UAC individually and
as Servicer,  the Warehouse  Subsidiaries  and the Insurer pursuant to which the
Insurer issued the Policy.

         "Insurer"  means  MBIA  Insurance  Corporation,  a New  York  domiciled
insurance company.

         "Insurer Default" has the meaning specified in the Indenture.

         "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 8.02(b) hereof and Section 9.09 of 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 Defaulted  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.

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

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

         "Monthly  Servicing  Fee" means,  (i) for the first Payment  Date,  the
product of the following:  the (a) monthly Servicing Rate (b) the number of days
from and including the Closing Date to the end of the first  Collection  Period,
assuming each month is a 30-day  month,  divided by 30 and (c) the Original Pool
Balance less the Initial  Pre-Funded Amount and (ii) for any subsequent  Payment
Date,  the product of (a) the Pool  Balance as of the  beginning  of the related
Collection Period less the Pre-Funded Amount and (b) the monthly Servicing Rate.

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

         "Notes" has the meaning specified in the Indenture.

         "Noteholders" has the meaning specified in 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 made on behalf of an Obligor"  shall mean all payments made
with  respect to a  Receivable  except  payments  made by UAC, the Seller 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 UAC, the Seller 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 Seller and/or Servicer,  which counsel shall be acceptable to the
Owner Trustee.

         "Optional  Disposition  Price"  means the amount  specified  as such in
Section 16.02.

         "Original Pool Balance" means $573,000,000, which equals the sum of (i)
the Pool Balance of the Initial  Receivables  as of the Initial  Cutoff Date, or
$430,003,160.49, plus (ii) the Initial Pre-Funded Amount.

         "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 First Union Trust Company,  National Association,
a national banking association with its principal place of business in the State
of Delaware,  acting not in its individual  capacity but solely as trustee under
this Agreement 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's   Certificate"  means  a  certificate  completed  and
executed  by the Owner  Trustee by a  Responsible  Officer  pursuant  to Section
15.02,  substantially  in the form  of,  in the  case of an  assignment  to UAC,
Exhibit 1, and in the case of an assignment to the Servicer, Exhibit 2.

         "PAC" means  Performance  Acceptance  Corporation,  a subsidiary of UAC
which was merged into UAC,  and/or UAC doing business as Performance  Acceptance
Corporation.

         "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 8.02(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 8.02(b) and 9.09 hereof and Section 9.09 of the
Indenture.

         "Payment Date" means, for each Collection  Period,  the eighth calendar
day of the month following the end of the related  Collection Period or, if such
day is not a Business Day, the first Business Day thereafter.  The first Payment
Date shall be April 9, 2001.

         "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 plus the Pre-Funded  Amount, if any, as of such date;  provided,
however,  that for purposes of  determining  Monthly  Principal,  the  Principal
Balance  of a  Defaulted  Receivable  or a  Purchased  Receivable  (if  actually
purchased by the Servicer or  repurchased  by UAC) 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 Defaulted  Receivable or a Purchased  Receivable
that is actually purchased or repurchased.

         "Pre-Funded  Amount" means,  the amount on deposit from time to time in
the Pre-Funding Account.

         "Pre-Funding Account" means the account designated as such, established
and maintained pursuant to Section 9.10.

         "Pre-Funding  Reserve  Amount"  means  $282,403.89  for the April  2001
Payment Date and  $282,403.89  for the May 2001 Payment Date;  provided that the
Pre-Funding  Reserve  Amount  shall reduce to  $58,971.33  for each Payment Date
should the Pre-Funding Reserve Deposit Amount be reduced to $117,942.66.

         "Pre-Funding  Reserve Balance" means, the amount of funds on deposit in
the Spread Account equal to the Pre-Funding  Reserve Deposit Amount less the sum
of all Pre-Funding Reserve Amounts previously withdrawn.

         "Pre-Funding  Reserve Deposit Amount" means $564,807.79;  provided that
the  Pre-Funding  Reserve  Deposit Amount shall be reduced to  $117,942.66  with
Standard & Poor's consent.

         "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.

         "Predecessor"  means Union  Federal  Savings  Bank of  Indianapolis,  a
federally chartered stock savings bank.

         "Prepayment Charges," as used in the Agreement, shall be interpreted to
include,  without  limitation,  in the case of 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  Agreements"  means the UAFCC Purchase  Agreement dated as of
the date  hereof by and among the  Seller,  UAC and  UAFCC,  and/or  the  UAFC-1
Purchase  Agreement dated as of the date hereof by and among the Seller, UAC and
UAFC-1,  as applicable,  as amended,  supplemented or modified from time to time
pursuant to which the Seller purchases  Receivables  which have been or shall be
transferred to the Trust.

         "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  8.07 or  repurchased  by UAC  pursuant to Section  7.02 not
later than the respective dates required thereby.

         "Rating  Agency"  means each of Moody's and Standard & Poor's 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.

         "Receivables" or "Receivables  Pool" means,  collectively,  the Initial
Receivables and the Subsequent Receivables.

         "Record Date" 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.

         "Seller" means UAC Securitization  Corporation, a Delaware corporation,
in its capacity as the seller of the Receivables under this Agreement,  and each
successor to UAC  Securitization  Corporation (in the same capacity) pursuant to
Section 12.03.

         "Servicer" means Union Acceptance Corporation,  an Indiana corporation,
in its capacity as the servicer of the  Receivables  and each successor to Union
Acceptance  Corporation  (in the same  capacity)  pursuant  to Section  13.03 or
14.02.

         "Servicer's  Certificate" means a certificate completed and executed by
an officer of the Servicer pursuant to Section 8.09.

         "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 14.02.

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

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

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

         "Stated Final Payment Date"  means April 8, 2009.

         "Subsequent  Cutoff  Date"  means each date  designated  as such by the
Seller. Receivables acquired by UAC as of each such date will be conveyed to the
Trust on the related Subsequent Transfer Date.

         "Subsequent   Receivables"   means   additional   simple   interest  or
precomputed  interest  installment  sales  contracts  or  installment  loan  and
security  agreements which the Seller will convey to the Trust from time to time
during  the  Funding  Period,  having  an  aggregate  value  up to  the  Initial
Pre-Funded Amount and listed as of a Subsequent Cutoff Date on Schedule I to the
related Subsequent Transfer Assignment.

         "Subsequent  Transfer  Assignments"  means the document of  assignment,
attached  as  Exhibit  4 to this  Agreement,  for  the  transfer  of  Subsequent
Receivables to the Trust on any Subsequent Transfer Date.

         "Subsequent  Transfer  Date" means each date  designated as such by the
Seller,  during the Funding Period, on which Subsequent  Receivables acquired by
UAC as of the related Subsequent Cutoff Date are conveyed to the Trust.

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

         "Trust" means the Delaware business trust created by the Agreement, the
estate of which shall generally  comprise the Pledged Assets,  as defined in the
Indenture.

         "UAC" means Union Acceptance Corporation,  an Indiana corporation,  and
its successors and assigns, other than in its capacity as Servicer.

         "UAC Finance  Corporation"  means UAC Finance  Corporation,  an Indiana
corporation, and its successors and assigns.

         "UAFC-1"  means UAFC-1  Corporation,  a Delaware  corporation,  and its
successors and assigns.

         "UAFCC" means UAFC  Corporation,  a Delaware  corporation  (F/K/A Union
Acceptance Funding Corporation), and its successors and assigns.

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

         "Warehouse Subsidiaries" means UAFCC and UAFC-1.

         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.  Closing 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.

                                   ARTICLE III

                            Conveyance of Receivables

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

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

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

                  (iii) any Liquidation Proceeds and any 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 related to the Initial Receivables;

                  (iv)  funds  deposited  in  the  Collection  Account  and  the
         Pre-Funding Account;

                  (v) the interest of the Seller in any proceeds  from  recourse
         to Dealers relating to the Initial Receivables;

                  (vi) all documents  contained in the Receivable  Files for the
         Initial Receivables;

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

                  (viii)  the  rights of the  Seller  pursuant  to the  Purchase
         Agreements to require UAC to  repurchase  any  Receivables  as to which
         there has been a breach of the representations and warranties contained
         therein;

                  (ix) the benefits of the Policy; and

                  (x) all proceeds of the foregoing.

         The Seller  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 Seller may have in the  Collection  Account,  the
Spread Account,  the Pre-Funding  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 Seller  acknowledges  that all of the foregoing shall
constitute the "Pledged  Assets"  pursuant to the terms of the Indenture and the
Seller  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 Seller does not convey to the Trust any  interest in any  contracts
with Dealers  related to any "dealer  reserve" or any rights to the recapture of
any dealer reserve.

         SECTION 3.02. Conveyance of Subsequent Receivables.  (a) Subject to the
conditions set forth in paragraph (b) below, in  consideration  of the Indenture
Trustee's delivery on the related Subsequent  Transfer Date to or upon the order
of the Seller of the amount  described  in Section  9.10 of the  Indenture,  the
Seller does hereby sell, transfer,  assign, set over and otherwise convey to the
Trust without recourse (subject to the obligations set forth herein):

                  (i) all right, title, and interest of the Seller in and to the
         Subsequent  Receivables  listed in Schedule I to the related Subsequent
         Transfer  Assignment,  which Schedule I shall be deemed a supplement to
         Schedule A to this Agreement;

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

                  (iii) any Liquidation Proceeds and any proceeds from claims or
         refunds of premiums on any physical  damage,  lender's single interest,
         credit life, disability and hospitalization insurance policies covering
         such  Financed   Vehicles  or  Obligors   related  to  the   Subsequent
         Receivables;

                  (iv) the interest of the Seller in any proceeds  from recourse
         to Dealers related to the Subsequent Receivables;

                  (v) all documents  contained in the  Receivable  Files for the
         Subsequent Receivables;

                  (vi) all monies  paid and all monies  due,  including  Accrued
         Interest,  as of and after the applicable  Subsequent Cutoff Date, with
         respect to the  Subsequent  Receivables  held by the Servicer or Seller
         (but excluding Accrued Interest paid prior to such Subsequent  Transfer
         Date); and

                  (vii) the proceeds of any and all of the foregoing.

         (b) The Seller shall transfer to the Trust the  Subsequent  Receivables
         and  the  other  property  and  rights  related  thereto  described  in
         paragraph (a) above only upon the satisfaction of each of the following
         conditions  precedent  on or prior to the related  Subsequent  Transfer
         Date:

                           (A) the  Seller  shall  have  delivered  to the Owner
                  Trustee a duly executed Subsequent Transfer Assignment,  which
                  shall include a Schedule I listing the Subsequent  Receivables
                  conveyed to the Trust on such date, and which Schedule I shall
                  be deemed a supplement to Schedule A to this Agreement;

                           (B) the Seller shall have deposited in the Collection
                  Account,  to the extent required by Section  3.02(a)(vi),  all
                  collections in respect of the Subsequent Receivables;

                           (C) as of  each  Subsequent  Transfer  Date,  (1) the
                  Seller shall not be insolvent  and shall not become  insolvent
                  as a result of the transfer of Subsequent  Receivables on such
                  Subsequent  Transfer  Date, (2) the Seller shall not intend to
                  incur or believe that it will incur debts that would be beyond
                  its  ability to pay as such debts  mature,  (3) such  transfer
                  shall not have been made with actual  intent to hinder,  delay
                  or defraud  any Person and (4) the assets of the Seller  shall
                  not  constitute  unreasonably  small  capital to carry out its
                  business as conducted;

                           (D) the Funding Period shall not have terminated;

<PAGE>
                           (E)      As of the Subsequent  Transfer  Date,  after
                                    giving  effect to the transfer of Subsequent
                                    Receivables  on  such  Subsequent   Transfer
                                    Date,   the   Receivables   shall  meet  the
                                    following    criteria    (based    on    the
                                    characteristics  of the Initial  Receivables
                                    on  the   Initial   Cutoff   Date   and  the
                                    Subsequent  Receivables on their  respective
                                    Subsequent Cutoff Dates):  (1) not more than
                                    80%  of  the   Principal   Balances  of  the
                                    Receivables  shall  represent used vehicles;
                                    (2) the weighted  average  Contract  Rate of
                                    the  Receivables  shall  not  be  less  than
                                    13.30%;  (3) the weighted average  remaining
                                    term (as of the  Subsequent  Cutoff Date) of
                                    the Receivables shall not be greater than 76
                                    months;   (4)  not  more  than  12%  of  the
                                    aggregate    principal    balance   of   the
                                    Receivables will have been originated in the
                                    State of Texas;  and (5) no Receivable  will
                                    have a final  Scheduled  Payment  due  later
                                    than June 30, 2008;

                           (F)      The  Indenture  Trustee  shall have received
                                    written   confirmation   from  a   firm   of
                                    independent   certified  public  accountants
                                    that  the   Receivables,   as  of  the  date
                                    specified   therein,   meet   the   criteria
                                    specified in paragraph (E) above.

                           (G) each of the  representations  and warranties made
                  by the Seller  provided  pursuant  to the first  paragraph  of
                  Section 7.01 of this  Agreement with respect to the Subsequent
                  Receivables  shall  be  true  and  correct  as of the  related
                  Subsequent  Transfer Date, and the Seller shall have performed
                  all obligations to be performed by it hereunder on or prior to
                  such Subsequent Transfer Date;

                           (H) the  Seller  and/or  Servicer  shall,  at its own
                  expense, on or prior to the Subsequent Transfer Date, indicate
                  in  its  computer  files  that  the   Subsequent   Receivables
                  identified in Schedule I to the Subsequent Transfer Assignment
                  have been sold to the Trust pursuant to this Agreement;

                           (I) the Seller  shall have taken any action  required
                  to maintain the first priority perfected ownership interest of
                  the  Trust in the  Trust  property,  other  than  causing  the
                  certificates of title with respect to the Financed Vehicles to
                  be endorsed or otherwise  amended to identify the Trust as the
                  new secured party;

                           (J) no selection procedures believed by the Seller to
                  be adverse to the interests of the Noteholders shall have been
                  utilized in selecting the Subsequent Receivables;

                           (K) the addition of any such  Subsequent  Receivables
                  shall not result in a material adverse federal tax consequence
                  to the Trust or the Noteholders;

<PAGE>

                           (L) the prior  written  consent of the Insurer  shall
                  have been obtained;

                           (M) the Seller shall have  delivered to the Indenture
                  Trustee an Officers'  Certificate in substantially the form of
                  Annex A hereto,  and UAC shall have delivered to the Indenture
                  Trustee an Officer's  Certificate in substantially the form of
                  Annex B hereto;

                           (N) the Seller shall have  delivered to the Indenture
                  Trustee,  the  Insurer  and the Rating  Agencies  a  statement
                  listing  the  aggregate  Principal  Balance of the  Subsequent
                  Receivables  conveyed to the Trust on such Subsequent Transfer
                  Date and any other information  reasonably requested by any of
                  the foregoing with respect to such Subsequent Receivables; and

                           (O) the Seller shall have delivered (x) to the Rating
                  Agencies and the Insurer an Opinion of Counsel with respect to
                  the transfer of such Subsequent  Receivables  stating that the
                  Subsequent Receivables have been duly and validly assigned and
                  delivered by the Seller to the Trust under this  Agreement and
                  (y) to the  Indenture  Trustee  and the Insurer the Opinion of
                  Counsel required by Section 17.02(i); and

                           (P) the  Rating  Agency  Condition  shall  have  been
                  satisfied.

The  Seller  covenants  that  in  the  event  any of  the  foregoing  conditions
identified  in this  Section  3.02(b)  are not  satisfied  with  respect  to any
Subsequent  Receivable  conveyed  by the  Seller to the Trust on or prior to the
date  specified  above,  the Seller will  immediately  repurchase,  or cause its
designee to repurchase,  such  Subsequent  Receivable from the Trust, at a price
equal to the Purchase Amount thereof, in the manner specified in Section 7.02.

         (c) During the Funding Period,  the Seller shall sell to the Trust, and
the Trust shall  purchase  from the  Seller,  Subsequent  Receivables  having an
aggregate principal balance equal to not more than the Initial Pre-Funded Amount
to the  extent  that such  Subsequent  Receivables  are  available.  The  Seller
covenants  to  transfer  to  the  Trust,  pursuant  to the  preceding  sentence,
Subsequent  Receivables with an aggregate Principal Balance equal to the Initial
Pre-Funded  Amount.  In the event that the Seller shall fail to deliver and sell
to the Trust any or all of such Subsequent  Receivables,  any funds remaining in
the Pre-Funding  Account shall be distributed in accordance with Section 9.10 of
the Indenture to the  Noteholders  on the Payment Date next following the end of
the Funding  Period.  The foregoing shall be the sole remedy of the Trust or the
Noteholders  with  respect  to a  failure  of the  Seller  to  comply  with such
covenant.

                                   ARTICLE IV

                              Acceptance by Trustee

         The  Owner  Trustee  does  hereby  accept  on  behalf  of the Trust all
consideration  conveyed by the Seller 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.

                                    ARTICLE V

                  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 8.09, (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 8.10, (iii) delinquency and loss information for the
Receivables,  the amount of any draws on the  Policy,  the amount of  Subsequent
Receivables   purchased   from  the  Seller,   written  notice  of  any  merger,
consolidation,  or other succession of the Servicer,  pursuant to Section 13.03,
or the Seller,  pursuant to Section 12.03, (iv) a copy of each amendment to this
Agreement and (v) any Opinion of Counsel delivered to the Owner Trustee pursuant
to Section 17.02(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
8.11,  (ii) a copy of each  amendment to this  Agreement and (iii) a copy of the
notice of termination of the Trust provided to the Certificateholder pursuant to
Section 16.01.

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

                           Structured Finance/Asset Backed Surveillance Group
                           Standard & Poor's Ratings Services, a division of The
                             McGraw-Hill Companies, Inc.
                           55 Water Street, 40th Floor
                           New York, New York 10041-0003

                           Moody's Investors Service, Inc.
                           Attention:  ABS Monitoring Department
                           4th Floor
                           99 Church Street
                           New York, New York 10007

                  (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

         The agent for service  for the Seller  shall be The  Corporation  Trust
Company, 1209 Orange Street, Wilmington, Delaware 19801.

         The agent for service for the Servicer shall be The  Corporation  Trust
Company, 1209 Orange Street, Wilmington, Delaware 19801.

         A copy of any service of process  served on the Seller or the  Servicer
hereunder  shall also be sent to the parties to receive notices on behalf of the
Seller or Servicer, as the case may be, under Section 17.05 of this Agreement.

                                   ARTICLE VII

                                 The Receivables

         SECTION 7.01.  Representations  and  Warranties of Seller.  Pursuant to
Article III, the Seller has assigned to the Trust the benefit of, and its rights
respecting,  the  representations  and  warranties  made  to the  Seller  in the
Purchase Agreements as to the Receivables on which the Trust relies in accepting
the  Receivables,  issuing the  Certificate  and  executing and  delivering  the
Indenture.  The Seller  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 Agreements in the case of the Initial
Receivables,  and as of the applicable  Subsequent  Transfer Date in the case of
the Subsequent Receivables, but shall survive the sale, transfer, and assignment
of the Initial Receivables and the Subsequent Receivables to the Trust.

         (a) The Seller hereby  represents and warrants to the Trust that it has
entered  into the  Purchase  Agreements  with UAC and the  applicable  Warehouse
Subsidiaries,   that  UAC  and  the   Warehouse   Subsidiaries   have  made  the
representations and warranties set forth therein,  that such representations and
warranties  run to and are for the benefit of the Seller,  and that  pursuant to
Article III of this  Agreement  the Seller has  transferred  and assigned to the
Trust all rights of the  Seller to cause UAC under the  Purchase  Agreements  to
repurchase  Receivables  in the  event of a breach of such  representations  and
warranties.

         (b) It is the intention of the Seller that,  other than for Federal and
applicable  state and local income and franchise tax purposes,  the transfer and
assignment  herein  contemplated,  taken  as a whole,  constitute  a sale of the
Receivables from the Seller to the Trust and that the beneficial interest in and
title to the Receivables not be part of the receivership  estate in the event of
the  appointment  of a receiver  for the Seller.  No  Receivable  has been sold,
transferred,  assigned,  or pledged  by the Seller to any Person  other than the
Trust. Immediately prior to the transfer and assignment herein contemplated, the
Seller had good and marketable  title to each  Receivable  free and clear of all
liens, and, immediately upon the transfer thereof, the Trust (for the benefit of
the  Certificateholder  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  Certificateholder  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 Trust a first perfected  ownership  interest in
the Receivables shall have been made.

         SECTION 7.02. Repurchase Upon Breach. The Seller, UAC, the Servicer, or
the Owner Trustee,  as the case may be, shall inform the Indenture Trustee,  the
Insurer and the other parties  promptly,  in writing,  upon the discovery of any
breach  of  the  representations  and  warranties   contained  in  the  Purchase
Agreements.  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,
UAC, pursuant to its obligations under the Purchase Agreements, shall repurchase
any Receivable materially and adversely affected by the breach as of such Record
Date (or, at UAC's option,  the first Record Date following the  discovery).  In
consideration  of the purchase of the  Receivable,  UAC 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
UAC to  repurchase  Receivables  pursuant to the  Purchase  Agreements  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 Trust,  upon
the  execution  and delivery of the  Agreement,  hereby  revocably  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  Trust as
custodian  of  the  following   documents  or   instruments   which  are  hereby
constructively  delivered to the Trust with respect to each  Receivable,  which,
except for item (i) below, may be in microfiche or electronic form:

                  (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 Seller or  Servicer  shall  keep on file,  in  accordance  with its
         customary procedures, evidencing the security interest of the Seller in
         the Financed  Vehicle;  provided  that such  documents  shall not be in
         electronic or microfiche form unless permitted by the laws of the state
         in which such Financed Vehicle is registered.

                  (iv) Any and all  other  documents  that the  Servicer  or the
         Seller 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  Trust  for the use and  benefit  of the
Trust, and maintain such accurate and complete accounts,  records,  and computer
systems  pertaining to each  Receivable File as shall enable the Trust to comply
with this  Agreement  and the other Basic  Documents to which it is a party.  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 Trust 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 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
Receivables,  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 on behalf of the Trust.

         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  14.01,  the  appointment  of the  Servicer  as
custodian  may be  terminated  by the Trust 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 Trust  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 Indenture  Trustee or the Trust's agent at such place or
places as the Owner  Trustee  on behalf of the  Trust,  with the  consent of the
Insurer and the Indenture Trustee, may reasonably designate.

<PAGE>

                                  ARTICLE VIII

                   Administration and Servicing of Receivables

         SECTION 8.01. Duties of Servicer.  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 Trust 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
Defaulted  Receivable,  the Trust 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 Trust
for execution  that are necessary or appropriate to enable the Servicer to carry
out its servicing and administrative duties hereunder.

         SECTION 8.02. Collection of Receivable Payments. (a) 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. If payments are 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 8.07
(unless such Receivable is otherwise being purchased  pursuant to Section 16.02)
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  8.08,  or
other fee (to the extent consistent with its credit and collection  policy) 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 or other
fees,  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 on a Precomputed  Receivable  including  any Payaheads  previously
made  and  added  to the  Payahead  Balance  with  respect  to such  Precomputed
Receivable  shall be applied  first to  overdue  Scheduled  Payments  (including
reduction of Outstanding Advances as provided in Section 9.05). 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 8.03. 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 with respect to such deficiency.

         (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 Defaulted  Receivable
either  (i) by the end of the  Collection  Period  preceding  the  Stated  Final
Payment  Date or (ii) if  earlier,  by the end of the  ninth  Collection  Period
following the Collection  Period during which such Receivable became a Defaulted
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 8.04.  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 8.05.  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 Trust hereby authorizes 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 foregoing, 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,  UAC and/or such affiliate  will notify such  affiliate's
creditors,  if any, of such consignee affiliate  arrangements described above on
or before such arrangements are made.

         SECTION 8.06. Covenants of Servicer. The Servicer shall not release the
Financed Vehicle  securing any Receivable from the security  interest granted by
such  Receivable  in whole or in part  except in the event of payment in full by
the Obligor thereunder or repossession, nor shall the Servicer impair the rights
of the  Certificateholder  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 8.07.  Purchase of Receivables Upon Breach.  The Servicer,  the
Indenture  Trustee or the Owner  Trustee  shall  inform the other  party and the
Indenture  Trustee and the Insurer promptly,  in writing,  upon the discovery of
(i) any breach by the Servicer of its obligations under Section 8.06 or (ii) the
existence of the  Servicer's  obligation  to purchase a  Receivable  pursuant to
Section 8.02(a).  This obligation shall not constitute an obligation on the part
of the Owner Trustee or the  Indenture  Trustee to discover any such breaches or
circumstances. Unless the breach under Section 8.06 shall have been cured by the
second Record Date  following the  discovery,  the Servicer  shall  purchase any
Receivable  materially and adversely affected by such breach as of such day (or,
at  the  Servicer's  election,  as  of  the  first  Record  Date  following  the
discovery).  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 a breach  pursuant to Section 8.06 or the
grant of an extension which triggers an obligation of the Servicer under Section
8.02(a)  shall be to require the  Servicer to purchase  Receivables  pursuant to
this Section 8.07, except as provided in Section 13.02.

         SECTION 8.08.  Servicing Fee. The servicing fee for a Collection Period
shall equal the Monthly  Servicing  Fee (except  that in the case of a successor
Servicer, the servicing fee shall equal such amount as is arranged in accordance
with Section  14.02(c)).  The Servicer shall be entitled to retain from payments
of interest on the Receivables  collected  during a Collection  Period an amount
equal  to the  Monthly  Servicing  Fee  due  the  Servicer  in  respect  of such
Collection  Period and need not deposit such amount in the  Collection  Account.
The  Servicer  shall also be  entitled  to retain,  and need not  deposit in the
Collection Account, all late fees, Prepayment Charges, other administrative fees
or similar  charges  allowed by applicable law with respect to  Receivables,  if
any, collected (from whatever source) on the Receivables.  The Monthly Servicing
Fee will be paid  only  out of the  funds of the  Trust  and not from the  Owner
Trustee's own funds.  So long as UAC is the Servicer,  if the Servicer  fails to
pay the fees and expenses of the Owner Trustee or the Indenture Trustee pursuant
to Section  15.07  hereof or pursuant to the  Indenture,  the Owner  Trustee and
Indenture  Trustee  shall be  entitled  to receive  such amount from the Monthly
Servicing  Fee prior to payment  thereof to the Servicer and the Servicer  shall
not retain from collections  that portion of the Monthly  Servicing Fee equal to
any fees of the Owner Trustee and Indenture Trustee that are due and payable and
any unpaid amount that the Servicer has received notice is due the Owner Trustee
or the Indenture Trustee as reimbursement for expenses.

         SECTION 8.09.  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 9.04 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 and the Owner Trustee to
send statements to the Certificateholder,  including (A) the amount of aggregate
collections  on the  Receivables,  (B)  the  aggregate  Purchase  Amount  of the
Receivables  repurchased by UAC 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 of the Indenture, 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, if any, to be withdrawn from
the Spread  Account  and the  amount,  if any,  to be drawn on the  Policy,  (E)
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 on charged off
Receivables;  and (F) each other item  listed in Section  9.04 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
UAC as of the last day of such Collection  Period shall be identified by the UAC
account  number with respect to such  Receivable  (as specified in Schedule A to
this Agreement).

         SECTION 8.10. Annual Statement as to Compliance; Notice of Default. (a)
The Servicer shall deliver to the Owner Trustee,  the Indenture  Trustee 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  8.11 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 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 14.01. The Seller or UAC shall deliver to a Responsible Officer of
the Owner Trustee, the Indenture Trustee 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 14.01.

         SECTION 8.11. Annual Independent  Certified Public Accountant's Report.
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 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 and light truck 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 or light truck loans  serviced for others
that, in the firm's opinion,  paragraph four of such program  requires such firm
to report.

         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.

         SECTION 8.12. Access to Certain Documentation and Information Regarding
Receivables.  The Servicer shall provide to the Owner Trustee, Indenture Trustee
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 8.12.

         SECTION 8.13. 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 independent  accountants,  taxes imposed on
the  Servicer,  and expenses  incurred in connection  with regular  payments and
reports to Noteholders.

         SECTION 8.14.  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  8.09,  the  annual
statement  described in Section 8.10, or the annual report  described in Section
8.11. The Owner Trustee may require the requesting party to pay a reasonable sum
to cover the cost of the Owner Trustee complying with such request.

<PAGE>

                                   ARTICLE IX

         Collections; Distributions to Noteholders and Certificateholder

         SECTION  9.01.  Collection  Account.  The Seller  shall  establish  the
Collection  Account 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
Servicer  shall  instruct the  Indenture  Trustee (or its  custodian) to and the
Indenture  Trustee shall at all times (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 Monthly Servicing Fees and administrative  fees allowed
to be retained by the Servicer  pursuant to Section 8.08 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) UAC
remains the Servicer,  (b) no Event of Servicer  Default shall have occurred and
be continuing  and (c)(1) UAC  maintains a short-term  rating of at least A-1 by
Standard & Poor's and P-l 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  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 the aggregate amount of unreimbursed
draws  under the  Policy  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 shall be available to cover such  deficiency in accordance  with
Section 9.04(a) or 5.06(a) of the Indenture, as applicable.

         SECTION 9.03.  Purchase  Amounts.  (a) Not later than the Determination
Date,  the  Servicer,  UAC or the Owner  Trustee  shall remit to the  Collection
Account the aggregate  Purchase  Amount for such  Collection  Period pursuant to
Sections 7.02 and 8.07 and (b) 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
aggregate  Optional  Disposition  Price for  Receivables  on such  Payment  Date
pursuant to Section 16.02.

         SECTION 9.04. Application of Funds. (a) On each Determination Date, the
Servicer shall  determine (i) the amount of payments on all  Receivables and all
Liquidation  Proceeds  received  during such  Collection  Period,  the amount of
Advances for such  Collection  Period,  the Purchase  Amount for all Receivables
purchased or repurchased with respect to such Collection  Period which have been
deposited  in the  Collection  Account  (excluding  amounts  required to be paid
pursuant to Sections  7.02,  8.07, and 9.05 but not so paid) after giving effect
to the net transfer from the Collection  Account to the Payahead Account or from
the Payahead  Account to the  Collection  Account as provided in Section 9.09 of
the Indenture,  all investment earnings during such Collection Period on amounts
on deposit in the  Pre-Funding  Account and the  Pre-Funding  Reserve Amount for
such  Payment  Date  (the  "Available  Funds"),  and  (ii) the  amount  of funds
necessary to make the  distributions  required  pursuant to Section  9.04(a) (i)
through (xv) of the Indenture, inclusive, on the next Payment Date. The Servicer
shall by a Servicer's Certificate on or before the Determination Date notify the
Owner  Trustee  and the  Indenture  Trustee of such  amounts by  telecopy to the
Corporate  Trust Office and the Indenture  Trustee  Office or to such numbers as
the Owner Trustee or Indenture  Trustee may from time to time provide,  followed
promptly by mailing such notice to the Owner Trustee and the  Indenture  Trustee
and to the Insurer.

         (b) On each Payment Date through and  including  the first Payment Date
immediately following the Funding Period, the Servicer (or the Indenture Trustee
at the  Servicer's  direction)  shall  withdraw  from  the  Spread  Account  the
Pre-Funding  Reserve  Amount for such  Payment Date and deposit such amount into
the  Collection  Account.  On the first Payment Date  immediately  following the
Funding  Period,  any remaining  Pre-Funding  Reserve  Balance shall be remitted
promptly to the Seller  (after  giving  effect to any required  transfers of the
Pre-Funding Reserve Amount made from the Spread Account on such Payment Date).

         (c) On any  Payment  Date on which there are not  sufficient  Available
Funds to make the distributions required pursuant to Section 9.04(a) (i) through
(x) of the Indenture,  the Indenture  Trustee may, 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  simultaneously  and in the same manner also notify the Owner
Trustee,  the  Indenture  Trustee  and the  Insurer of the amount of such excess
deficiency.

         (d) On each Payment Date,  the Owner  Trustee  shall  distribute to the
Certificateholder the amount of funds on deposit in the Spread Account in excess
of the Required  Spread Amount,  if any, for such Payment Date, as received from
the  Indenture  Trustee  pursuant to Section  10.02(e) of the  Indenture on such
Payment  Date,  after  application  in accordance  with Section  10.02(e) of the
Indenture  of such excess to pay any  outstanding  amounts  owing to the Insurer
pursuant to the Insurance Agreement.

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

         (f) In the event that any  withholding  tax is  imposed on the  Trust's
payment  (or  allocations  of income) to the  Certificateholder,  such tax shall
reduce the amount otherwise distributable to the Certificateholder in accordance
with this Section 9.04.  The Owner Trustee is hereby  authorized and directed to
retain from amounts otherwise distributable to the Certificateholder  sufficient
funds for the  payment  of any tax that is  legally  owed by the Trust (but such
authorization  shall not prevent the Owner Trustee from  contesting any such tax
in appropriate proceedings, and withholding payment of such tax, if permitted by
law, pending the outcome of such proceedings). The amount of any withholding tax
imposed with respect to a Certificateholder shall be treated as cash distributed
to such Certificateholder at the time it is withheld by the Trust to be remitted
to the appropriate taxing authority.  If there is a possibility that withholding
tax is payable  with  respect to a  distribution  (such as a  distribution  to a
non-U.S.  Certificateholder),  the Owner Trustee in its sole discretion may (but
unless  otherwise  required  by law shall not be  obligated  to)  withhold  such
amounts  in   accordance   with  this   paragraph   (e).   Upon   request,   any
Certificateholder  shall provide its federal employer  identification  number or
any other  information or tax forms the Owner Trustee or the  Administrator  may
reasonably request. In the event that a Certificateholder  wishes to apply for a
refund of any such withholding tax, the Owner Trustee shall reasonably cooperate
with   such   Certificateholder   in   making   such   claim  so  long  as  such
Certificateholder  agrees to reimburse the Owner  Trustee for any  out-of-pocket
expenses incurred.

         (g) Distributions  required to be made to the  Certificateholder 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)  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 (b) 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.

         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.

         SECTION 9.06. Net Deposits. For so long as Union Acceptance Corporation
is the Servicer,  Union 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 13.06
(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 the  Certificateholder  to
prepare its federal and state  income tax returns.  Consistent  with the Trust's
characterization  for tax purposes as a disregarded entity so long as the Seller
or any other Person is the sole beneficial 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
a selling Certificateholder permitted by Section 11.03, 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 (including the treatment of any class of Notes as
a beneficial  ownership in the Trust  pursuant to a final  determination  of the
Internal  Revenue  Service  or a court),  the Owner  Trustee  shall  inform  the
Indenture Trustee in writing of such event, (x) the Administrator,  on behalf of
the  Trust  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 (using the calendar year or its fiscal year, or such other taxable year as
may be  required  by the Code) and shall  remit  such  returns to the Seller for
signature (or if the Seller no longer owns the Certificate, to the Seller to the
extent its tax  liability is affected  thereby and  otherwise  to the  successor
Certificateholder owning the largest percentage interest in the Certificates) 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 Seller (or such successor Certificateholder, as applicable)
shall promptly sign such returns and deliver such returns after signature to the
Administrator,  on behalf of the  Trust and such  returns  shall be filed by the
Administrator,  on behalf of the Trust with the appropriate tax authorities.  In
the event 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 Seller is
hereby  designated  as tax  matters  partner  or,  if  the  Seller  is  not  the
Certificateholder,  the  Seller to the  extent  its tax  liability  is  affected
thereby  and  otherwise  the  successor  Certificateholder  owning  the  largest
percentage  interest in the  Certificates,  shall be  designated  as tax matters
partner.  In no event shall the Owner Trustee,  the  Administrator or the Seller
(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,  the  Administrator  or the Seller (or
such designee Certificateholder as applicable), as the case may be, in breach of
its obligations under this Agreement.  Unless otherwise instructed by a majority
in  interest  of  the  Certificateholders,   none  of  the  Owner  Trustee,  the
Administrator,  or the Seller shall elect, or shall cause an election to be made
on behalf of the Trust,  under (i) Section 1278 of the Code to accrue its market
discount income currently or (ii) Section 754 of the Code.

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

         SECTION 9.10.  Pre-Funding  Account.  (a) The  Indenture  Trustee shall
establish and maintain the  Pre-Funding  Account in accordance with Section 9.10
of the  Indenture.  The  Seller  shall  deposit an amount  equal to the  Initial
Pre-Funded  Amount into the  Pre-Funding  Account on or before the Closing Date.
The Pre-Funding Account shall be maintained in the name of the Indenture Trustee
as trustee for the benefit of the Secured Parties.  The Pre-Funding  Account and
any amounts on deposit  therein shall be part of the Trust and shall be held for
the benefit of the Secured Parties.  The Pre-Funding Account shall be maintained
pursuant to Section 9.10 of the Indenture.

                                    ARTICLE X

                               Intentionally Blank

                                   ARTICLE XI

                                 The Certificate

         SECTION 11.01. The Certificate.  The Certificate shall be issued in the
form of one or more  certificates  and shall  initially be issued to the Seller.
The Certificate  shall be executed on behalf of the Trust by manual or facsimile
signature of a Responsible  Officer of the Owner Trustee. A Certificate  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 a valid and binding  obligation  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  Certificate  or did not hold such
offices at the date of such Certificate.

         SECTION 11.02.  Authentication of Certificate.  The Owner Trustee shall
cause the Certificate to be executed on behalf of the Trust,  authenticated  and
delivered to or upon the written order of the Seller,  signed by its chairman of
the board,  its president,  or any vice  president,  without  further  corporate
action by the Seller, 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  form  of
Certificate attached as an exhibit 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.  Each Certificate shall be dated the date
of its authentication.

         SECTION 11.03.  Registration  of Transfer and Exchange of  Certificate.
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  prescribe,  the  Owner  Trustee  shall  provide  for  the  registration  of
Certificates  and of  transfers  and  exchanges of  Certificates  subject to the
restrictions provided herein.

         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 a  Certificate  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.

         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.

         The  Seller,  as the  initial  Certificateholder,  and each  subsequent
Certificateholder by its acceptance of its Certificate,  represents and warrants
to the  Trust,  the  Owner  Trustee  and the  Secured  Parties  that it is not a
"Benefit  Plan" (as such  term is  defined  in the  Employee  Retirement  Income
Security  Act of 1974,  as  amended)  or a person  who is not a  "United  States
person"  within the  meaning of  Section  7701(a)(30)  of the Code and agrees to
indemnify and hold harmless the Trust, the Owner Trustee and the Secured Parties
in respect of any tax,  loss,  liability or expense  incurred as a result of the
breach of such representation and warranty by such Certificateholder.

         No service  charge  shall be made for any  registration  of transfer or
exchange of a  Certificate,  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 a Certificate.

         SECTION 11.04. 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 11.04, 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  11.04 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.

                                   ARTICLE XII

                                   The Seller

         SECTION 12.01.  Representations  and  Undertakings  of Seller.  (a) The
Seller  makes  the  following  representations  on which  the  Trust  relies  in
accepting the Receivables and executing and  authenticating  the Certificate and
undertaking  its  obligations  under the  Indenture.  The Seller agrees that the
representations  and  undertakings  shall  also be for the  benefit of the Owner
Trustee and 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.

                                    (i)  Organization  and  Good  Standing.  The
                  Seller has been duly  organized  and is validly  existing as a
                  corporation  in good  standing  under the laws of the State of
                  Delaware,  with 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 has, power, authority,  and legal right to
                  acquire and own the Receivables.

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

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

                                    (iv) Valid Sale; Binding  Obligations.  This
                  Agreement evidences a valid sale, transfer,  and assignment of
                  the  Receivables,   enforceable   against   creditors  of  and
                  purchasers from the Seller; and evidences a legal,  valid, and
                  binding  obligation  of the Seller  enforceable  in accordance
                  with its terms.

                                    (v) No Violation.  The  consummation  of the
                  transactions contemplated by the 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  Seller,  or any  indenture,  agreement,  or
                  other instrument to which the Seller is a party or by which it
                  shall be bound;  nor result in the creation or  imposition  of
                  any Lien upon any of its  properties  pursuant to the terms of
                  any such indenture, agreement, or other instrument (other than
                  this  Agreement);  nor  violate any law or, to the best of the
                  Seller's knowledge,  any order, rule, or regulation applicable
                  to  the  Seller  of  any  court  or of any  federal  or  State
                  regulatory body,  administrative agency, or other governmental
                  instrumentality  having  jurisdiction  over the  Seller or its
                  properties.

                                    (vi)   No   Proceedings.    There   are   no
                  proceedings  or  investigations  pending,  or, to the Seller's
                  best knowledge, threatened, before any court, regulatory body,
                  administrative  agency, or other governmental  instrumentality
                  having  jurisdiction  over the Seller 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 Seller 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 Seller  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.

                                    (ii) It will not, without the consent of the
                  Insurer  (not  to be  unreasonably  withheld),  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 Certificate.

                                    (iii)   It will not:

                                            (A) Fail to do all things  necessary
                           to maintain  its  corporate  existence  separate  and
                           apart  from  UAC 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  Seller  under the
                           Seller'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 Seller or (VI) maintain a separate
                           office address with a separate  telephone number from
                           those of UAC 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 Seller has similar
                           rights and/or  obligations,  commingle its funds with
                           those  of UAC or any  affiliate  thereof  or use  its
                           funds for other than the Seller's uses.

         SECTION 12.02.  Liability of Seller;  Indemnities.  The Seller shall be
liable in accordance herewith only to the extent of the obligations specifically
undertaken by the Seller under this Agreement.

                           (i) The  Seller  shall  indemnify,  defend,  and hold
         harmless, the Owner Trustee in its individual and trust capacities, the
         Indenture Trustee, 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  Trust or the
         issuance and original sale of the Certificate 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  Certificate or the Notes) and costs and expenses
         in defending against the same.

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

         Indemnification  under  this  Section  12.02  shall  include,   without
limitation,  reasonable fees and expenses of counsel and expenses of litigation.
Neither the Seller nor any of the persons  indemnified  under this Section 12.02
will in any event be  entitled  to make any claim upon the Trust  estate for the
payment or reimbursement of any losses,  liabilities,  taxes, costs, expenses or
fees under this  Section  12.02.  If the  Seller  shall have made any  indemnity
payments to the Owner  Trustee,  the Indenture  Trustee or the Trust pursuant to
this  Section  and  the  Owner  Trustee,  the  Indenture  Trustee  or the  Trust
thereafter shall collect any of such amounts from others, the Owner Trustee, the
Indenture  Trustee or the Trust, as the case may be, shall repay such amounts to
the Seller, without interest. This indemnification shall survive the termination
of this  Agreement  and the  resignation  or removal of the Owner Trustee or the
Indenture Trustee.  Notwithstanding the foregoing,  any amounts Seller shall pay
pursuant to this  Section  12.02 shall be paid  solely from  Available  Funds in
excess of funds necessary to pay all  outstanding  interest and principal due to
the  Noteholders in accordance  with the priorities set forth in Section 9.04 of
the  Indenture  (or, if an Event of Default (as  defined in the  Indenture)  has
occurred  under the  Indenture,  in accordance  with the priorities set forth in
Section  5.06 of the  Indenture)  and  shall in any case be  nonrecourse  to the
Seller and to the Seller's  assets and, to the extent funds are not so available
to pay any amounts when due and owing,  the claims  relating  thereto  shall not
constitute  a claim (as defined in Section 101 of Title 11 of the United  States
Bankruptcy  Code)  against the Seller but shall  continue to accrue.  Each party
hereto  agrees that the payment of any claim of any such party  pursuant to this
Section 12.02 shall be  subordinated  to the payment in full of all  outstanding
interest and principal due to the Noteholders. The payment of any claim pursuant
to this Section 12.02 shall in no event be construed as a "fee" of the Indenture
Trustee or the Owner Trustee as such term is used in Section  5.06(a)(ii) of the
Indenture.

         SECTION  12.03.  Merger  or  Consolidation  of,  or  Assumption  of the
Obligations  of  Seller.  Any  Person (a) into which the Seller may be merged or
consolidated, (b) which may result from any merger or consolidation to which the
Seller shall be a party, or (c) which may succeed to all or substantially all of
the properties and assets of the Seller's  business,  which Person in any of the
foregoing cases executes an agreement of assumption to perform every  obligation
of the  Seller  under  this  Agreement,  shall be the  successor  to the  Seller
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 both, would become
an Event of Servicer  Default  shall have happened and be  continuing,  (ii) the
Seller shall have  delivered to the Owner Trustee and the  Indenture  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,  if any, provided for
in this Agreement relating to such transaction have been complied with and (iii)
the Seller shall have  delivered an Opinion of Counsel to the Owner  Trustee and
the Indenture  Trustee  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 Trust 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  foregoing,  the Seller  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,  not to be  unreasonably
withheld.

         SECTION 12.04. Limitation on Liability of Seller and Others. The Seller
and any  director or officer or employee or agent of the Seller 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 Seller shall not be under any obligation to appear in, prosecute,
or defend any legal action that shall not be incidental to its obligations under
this  Agreement,  and that in its  opinion  may  involve  it in any  expense  or
liability.

                                  ARTICLE XIII

                                  The Servicer

         SECTION  13.01.  Representations  of Servicer.  The Servicer  makes the
following representations on which the Trust relies in accepting the Receivables
and issuing the  Certificate  and executing and delivering  the  Indenture.  The
Servicer  agrees that the  representations  shall also be for the benefit of the
Owner  Trustee  and 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 Owner Trustee and the pledge to the Secured Parties  pursuant
to the Indenture.

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

                           (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 does 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 is  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.

         SECTION 13.02. Indemnities of Servicer. The Servicer shall be liable in
accordance  herewith  only  to  the  extent  of  the  obligations   specifically
undertaken by the Servicer under this Agreement.

                           (i) The Servicer  shall defend,  indemnify,  and hold
         harmless the Owner Trustee (in its  individual  and trust  capacities),
         the Indenture  Trustee,  and their officers,  directors,  employees and
         agents, the Trust, the  Certificateholder  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 (in its  individual  and trust  capacities),
         the Indenture Trustee, 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  Certificate,  the Notes, or asserted with respect
         to  ownership  of the  Receivables,  or federal or other  income  taxes
         arising out of distributions on the Certificate or the Notes) and costs
         and expenses in defending against the same.

                           (iii) The Servicer shall indemnify,  defend, and hold
         harmless the Owner Trustee (in its  individual  and trust  capacities),
         the  Indenture  Trustee,  the  Insurer,   their  officers,   directors,
         employees  and agents,  and the Trust,  the  Certificateholder  and the
         Noteholders  from and  against  any and all  costs,  expenses,  losses,
         claims,  actions,  suits,  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 (in its  individual  and trust  capacities),
         the Indenture Trustee, their respective officers, directors,  employees
         and agents and the Trust from 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  and  contained  in  the  Indenture  and  the  Basic
         Documents,  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 the Owner Trustee or the Indenture Trustee; (b)
         relates to any tax other than the taxes  with  respect to which  either
         the Seller or Servicer shall be required to indemnify the Owner Trustee
         or the Indenture Trustee; (c) shall arise from the breach of any of the
         representations or warranties of the Owner Trustee set forth in Section
         15.13 or by the  Indenture  Trustee  set forth in  Section  6.13 of the
         Indenture;  (d) shall be one as to which  the  Seller  is  required  to
         indemnify  the  Owner  Trustee  or  the  Indenture  Trustee  under  the
         Agreement and the Seller has paid such  indemnity  claim;  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.

                           (v)  The  Servicer  agrees  to pay  to the  Indenture
         Trustee from time to time such  compensation  as the Servicer or Issuer
         and the Indenture Trustee have agreed to in writing. Subject to Section
         6.07 of the Indenture,  the Servicer  agrees to reimburse the Indenture
         Trustee upon its request for all reasonable expenses, disbursements and
         advances  incurred or made by the Indenture  Trustee in accordance with
         any provision of the Indenture or any of the Basic Documents (including
         the  compensation  and the  expenses and  disbursements  of its agents,
         counsel, experts and accountants).

         Indemnification  under this Section 13.02 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  13.03.  Merger  or  Consolidation  of,  or  Assumption  of the
Obligations of Servicer. Any Person (a) into which the Servicer may be merged or
consolidated, (b) which may result from any merger or consolidation to which the
Servicer shall be a party, or (c) 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 (i) 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,
(ii) the Servicer  shall have  delivered to the Owner  Trustee and the Indenture
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 13.03 and that all conditions  precedent  provided for in this
Agreement  relating to such  transaction  have been  complied with and (iii) the
Servicer shall have delivered an Opinion of Counsel to the Owner Trustee and its
Indenture  Trustee 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 Trust and the Secured Parties 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 foregoing,  the Servicer shall not engage in any
merger or  consolidation  in which it is not the surviving  corporation  without
providing  advance written notice thereof to the Owner Trustee and the Indenture
Trustee and without  obtaining the prior written consent of the Insurer,  not to
be unreasonably withheld.

         SECTION 13.04.  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
Certificateholder  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 Defaulted  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  13.05.  Servicer Not to Resign.  The Servicer shall not resign
from its obligations and duties under this Agreement  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 shall be evidenced by an Opinion of Counsel to such
effect  delivered  to the  Owner  Trustee.  No  such  resignation  shall  become
effective until the Indenture Trustee or a successor servicer shall have assumed
the  responsibilities and obligations of the Servicer in accordance with Section
14.02.

         SECTION  13.06.  Delegation  of Duties.  Except as  provided in Section
13.03  hereof,  it is  understood  and  agreed by the  parties  hereto  that the
Servicer or the Seller 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 Seller 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 Seller or the Servicer hereunder.  Any such delegation shall not
relieve  the  Servicer  or  the  Seller  of  their   respective   liability  and
responsibility  with  respect  to  such  duties,  and  shall  not  constitute  a
resignation  within Section 13.05 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 XIV

                                Servicer Default

         SECTION 14.01.  Events of Servicer Default. If any one of the following
events ("Events of Servicer Default") shall occur and be continuing:

                           (i) Any failure by the  Servicer or UAC to deliver to
         the Collection 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
         Agreements  or any failure by the  Servicer  to deliver any  Servicer's
         Certificate  pursuant  to Section  8.09  that,  in either  case,  shall
         continue unremedied for a period of two 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  or UAC 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 Seller
         or UAC duly to observe or to perform in any material  respect any other
         covenants or agreements of the Servicer, the Seller or UAC, as the case
         may be, set forth in this Agreement or the Purchase  Agreements,  which
         failure shall (a)  materially  and  adversely  affect the rights of the
         Certificateholder  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,  UAC or the  Seller,  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;

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 or the  Administrator,  on behalf of
the Owner Trustee, deliver a notice of termination to the Servicer and appoint a
successor Servicer  designated by the Insurer in such notice pursuant to Section
14.02; (B) require that the Indenture Trustee or the Administrator, on behalf of
the Owner 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 Owner 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,  all  authority  and
power  of the  Servicer  under  this  Agreement,  whether  with  respect  to the
Certificate,  the Notes or the Receivables or otherwise,  shall, without further
action,  pass  to and be  vested  in the  Indenture  Trustee  (except  that  the
Indenture  Trustee  may but  shall not be  required  to make  Advances)  or such
successor Servicer as may be appointed under Section 14.02 pursuant to and under
this Section 14.01;  and, without  limitation,  the Indenture  Trustee is 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  Indenture  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  reasonable
costs and expenses  (including  attorneys'  fees)  incurred in  connection  with
transferring  the Receivable  Files to the successor  Servicer and amending this
Agreement to reflect such succession as Servicer  pursuant to this Section 14.01
shall  be paid by the  predecessor  Servicer  upon  presentation  of  reasonable
documentation of such costs and expenses.

         SECTION  14.02.  Appointment  of  Successor.  (a) Upon  the  Servicer's
receipt of notice of  termination  pursuant to Section  14.01 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,  the Indenture
Trustee shall appoint a successor  Servicer,  which successor  Servicer shall be
reasonably  acceptable  to the Insurer (so long as the Insurer is not in default
of its obligations under the Policy and the Policy shall be in effect),  and the
successor  Servicer shall accept its appointment by a written assumption in form
acceptable to the Owner Trustee and the Indenture  Trustee.  In the event that a
successor  Servicer  has not been  appointed  at the time  when the  predecessor
Servicer has ceased to act as Servicer in  accordance  with this Section  14.02,
the Indenture  Trustee without further action shall  automatically  be appointed
the successor Servicer.  Notwithstanding the above, the Indenture Trustee shall,
if it shall be legally  unable,  or if it is  unwilling so to act,  appoint,  or
petition a court of competent jurisdiction to appoint, any established financial
institution,  having a net worth of not less than  $50,000,000 and whose regular
business shall include the servicing of automotive receivables, as the successor
to the Servicer under this Agreement and which financial  institution is, in the
case of appointment by the Owner Trustee,  reasonably  acceptable to the Insurer
and the Indenture Trustee.

         (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  Monthly
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 Indenture  Trustee and such successor  Servicer shall take
such action, consistent with this Agreement, as shall be necessary to effectuate
any such succession.

         SECTION 14.03. 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 XIV, the Owner Trustee shall
give  prompt  written  notice  thereof to the  Certificateholder  at the address
appearing  in the  Certificate  Register,  to the Insurer  and to the  Indenture
Trustee for further notice thereof to the Noteholders.

         SECTION  14.04.  Waiver of Past  Defaults.  The Insurer (so long as the
Insurer  is not in default  of its  obligations  under the Policy and the Policy
shall be in effect) or the Indenture Trustee (if the Insurer is in default under
the Policy or the Policy shall have  terminated  in  accordance  with its terms)
upon  direction  from  holders  of Notes  evidencing  not  less  than 51% of the
outstanding principal balance of the Notes may waive any default by the Servicer
in the performance of its obligations hereunder and/or 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  (unless  the  Insurer is in default of its  obligations
under the Policy).  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 XV

                                The Owner Trustee

         SECTION 15.01. 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 and only 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 14.01, 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.

         The Owner Trustee  shall  execute and deliver,  on behalf of the Trust,
each  Basic  Document  to  which  the  Trust  is a party  and all  certificates,
instruments and agreements contemplated thereby. The Owner Trustee shall execute
and  authenticate  the  Certificates in accordance with this Agreement and shall
execute the Notes in accordance with the Indenture.

         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
to administer the Trust in the interest of the Certificateholder, 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,  upon  written  direction of the  Certificateholder  and on behalf of the
Trust,  file and prove any claim or claims that may exist on behalf of the Trust
against the Seller in connection with any claims paying  procedure as part of an
insolvency or a receivership  proceeding  involving the Seller.  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 Trust or 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.

         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
         Certificateholder 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 14.01, or
         of any  failure by the  Seller to comply  with the  obligations  of the
         Seller  referred  to  in  clause  (ii)  of  Section  14.01,   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
         Seller, as the case may be; and

                           (v) Without  limiting the  generality of this Section
         or Section  15.04,  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  (or  continuation
         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  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 Trust 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  Seller'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  15.02.  Owner  Trustee's   Certificate.   On  or  as  soon  as
practicable  after each Payment Date on which  Receivables shall be (i) assigned
to UAC  pursuant  to Section  7.02 or deemed to be  assigned  to the Seller as a
result of the application of Available Funds in respect of Defaulted Receivables
pursuant to Sections 9.04 and 9.05 or (ii) assigned to the Servicer  pursuant to
Section 8.07 or to the Servicer or any other Person  designated  by the Servicer
pursuant to Section 16.02,  the Owner Trustee shall,  at the written  request of
the Servicer, execute an Owner Trustee's Certificate,  substantially in the form
of,  in the case of an  assignment  to UAC,  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 UAC
pursuant  to Section  7.02 or 9.02 or  purchased  by the  Servicer  pursuant  to
Section  8.07 or the  Servicer or any other  Person  designated  by the Servicer
pursuant to Section 16.02 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 UAC or the  Servicer,  as the case may be with a
copy to the  Indenture  Trustee.  The Owner  Trustee's  Certificate  shall be an
assignment pursuant to Section 15.03.

         SECTION  15.03.  Trust's  Assignment  of  Purchased  Receivables.  With
respect to each  Receivable  repurchased  by UAC  pursuant to Section  7.02,  or
deemed to be so repurchased  pursuant to Section 8.02, purchased by the Servicer
pursuant to Section 8.07 or the Servicer or any other Person  designated  by the
Servicer  pursuant to Section 16.02, the Trust shall assign,  as of the last day
of the  Collection  Period  during  which  such  Receivable  became a  Defaulted
Receivable or became subject to repurchase by UAC or purchase by the Servicer or
such other Person,  without recourse,  representation,  or warranty, to UAC, the
Servicer or such other Person (as the case may be) all the Trust's right, title,
and 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 15.04.  Certain Matters Affecting the Owner Trustee.  Except as
otherwise provided in Section 15.01:

                           (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 the Certificateholder  pursuant to the provisions of this Agreement,
         unless the  Certificateholder  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, report, notice, request,
         consent,  order,  approval,  bond,  or other paper or document,  unless
         requested in writing to do so by the Insurer or 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 15.01,  and
         the Owner Trustee may rely upon the  representations and warranties and
         covenants  of the Seller and the Servicer  contained in this  Agreement
         with respect to the Receivables and the Receivable Files.

         SECTION 15.05. Owner Trustee Not Liable for Certificate or Receivables.
The recitals contained herein and in the Certificate (other than the certificate
of  authentication  on the Certificate)  shall be taken as the statements of the
Seller 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
Certificate  (other than the certificate of  authentication on the Certificate),
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  Certificateholder 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 Seller or the  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 Seller, 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.  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  Certificateholder  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
Certificateholder  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 deemed to owe any fiduciary duty to the Insurer.  The Owner
Trustee shall not be accountable for the use or application by the Seller of any
of the  Certificate  or  Notes  or of the  proceeds  thereof,  or for the use or
application  of any funds paid to the Seller or the  Servicer  in respect of the
Receivables.

         Notwithstanding  the foregoing or any other provision in this Agreement
to the contrary,  the Owner Trustee shall be liable in its  commercial  capacity
for losses attributable to its failure to make payments on Eligible  Investments
issued by the Owner Trustee in its commercial  capacity as principal obligor and
not as Owner Trustee  hereunder,  in accordance with the terms of the agreements
or instruments governing any such Eligible Investments.

         SECTION  15.06.  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 the Owner Trustee.

         SECTION  15.07.  Owner  Trustee's  and  Indenture  Trustee's  Fees  and
Expenses; Indemnification.  (a) The Servicer shall pay to the Owner Trustee, and
the Owner Trustee shall be entitled to, such  reasonable  compensation  as shall
have been separately  agreed to in writing on or prior to the date hereof (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.  The Servicer shall indemnify the Owner
Trustee (in its individual and trust  capacities)  (which,  for purposes of this
section, shall include its directors,  officers,  employees, and agents) for and
hold it  harmless  against  any loss,  liability,  claim,  action,  suit,  cost,
disbursement,  tax (other than taxes as or resulting from compensation  received
for  its  services  as  Owner  Trustee)  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.  The Servicer shall pay the fees and expenses
of the Administrator under the Administration Agreement; provided, however, that
the Servicer shall only be required to pay the  reasonable  fees and expenses of
any  successor  Administrator  or such  other  fees  agreed to in writing by the
Servicer. Additionally, the Seller, pursuant to Section 12.02 and subject to the
limitations  set forth  therein,  and the Servicer,  pursuant to Section  13.02,
respectively, shall indemnify the Owner Trustee with respect to certain matters.
This 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 15.08.  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
Baa3 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 15.08,  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 15.08, the Owner Trustee shall resign  immediately in the manner
and with the effect specified in Section 15.09.

         SECTION  15.09.  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, 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  Owner  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 15.08 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 15.09
shall not become  effective  until  acceptance of  appointment  by the successor
Owner Trustee pursuant to Section 15.10.

         SECTION 15.10.  Successor  Owner Trustee.  Any successor  Owner Trustee
appointed pursuant to Section 15.09 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 Owner Trustee.  Any
successor  Owner  Trustee  appointed  hereunder  shall file an  amendment to the
Certificate  of Trust with the Delaware  Secretary of State  reflecting the name
and principal  place of business of such successor Owner Trustee in the State of
Delaware.  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 15.10 unless at the time of such acceptance such successor Owner Trustee
shall be eligible pursuant to Section 15.08.

         Upon acceptance of appointment by a successor Owner Trustee pursuant to
this  Section  15.10,  the Servicer  shall mail notice of the  successor of such
Owner Trustee under this Agreement to the Indenture Trustee and to the Holder of
the  Certificate  at its address 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  15.11.   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
15.08,  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  15.12.  Appointment  of Co-Trustee or Separate  Owner Trustee.
Notwithstanding  any other  provisions of this  Agreement,  at any time, for the
purpose of meeting any legal  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 Certificateholder, such
title to the Trust, or any part thereof, and, subject to the other provisions of
this Section 15.12, 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  pursuant to Section 15.08 and no notice to the  Certificateholder
of the  appointment  of any  co-trustee  or separate  trustee  shall be required
pursuant to Section 15.10.

         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,  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 XV. 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.

         SECTION 15.13.  Representations  and  Warranties of Owner Trustee.  The
Owner Trustee makes the following  representations  and  warranties on which the
Seller, the Certificateholder and the Secured Parties may rely:

                           (i) Organization and Existence.  The Owner Trustee is
         a national  banking  corporation  with a principal place of business in
         the State of  Delaware  and is  authorized  to engage in a banking  and
         trust business under such laws.

                           (ii) 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.

                           (iii) Duly  Executed.  This  Agreement  has been duly
         executed and delivered by the Owner Trustee and  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 XVI

                                   Termination

         SECTION 16.01. Termination of the Trust. The respective obligations and
responsibilities  of the Seller,  the  Servicer  and the Owner  Trustee  created
hereby shall  terminate and the Trust created by this  Agreement  shall dissolve
upon (i) written notice to the Owner Trustee from the Servicer at any time after
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 16.02, or
(ii) the payment to all 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 the Trust  shall
terminate  one year and one day  following  the  date of the  occurrence  of (i)
above, if on the date of such occurrence,  UAC's Consolidated Tangible Net Worth
is less than $45,000,000,  plus 50% of UAC's cumulative  Consolidated Net Income
(with no  reduction  for  losses)  from and after  August  31,  1995;  provided,
further,  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 and Indenture
Trustee in writing  of any  prospective  termination  pursuant  to this  Section
16.01. Notwithstanding the foregoing, the Trust shall continue and the Indenture
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 16.02. Optional Disposition of All Receivables.  On any Payment
Date (after  giving  effect to any payments to be made on such Payment  Date) on
which the Note  Balances  will be equal to or less than 10% of the Initial  Note
Balances,  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 Disposition Price") equal to the fair market
value  of the  Receivables,  but  not  less  than  the  sum of (x)  100%  of the
outstanding Note Balances (including any overdue principal or interest thereon),
(y) accrued and unpaid  interest on such amount  computed at a rate equal to the
weighted average interest rate applicable to the Notes then outstanding, and (z)
all amounts due and owing to the Insurer under this Agreement, the Indenture and
the  Insurance  Agreement.  Any such purchase will be effective as of the end of
the Collection  Period which relates to the Payment Date on which the repurchase
occurs.  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  connection  with  such
disposition, the Servicer is required to pay any unpaid fees and expenses of the
Owner  Trustee  and the  Indenture  Trustee  that it would  otherwise  have been
entitled to pursuant to this  Agreement.  The  Servicer  shall  notify the Owner
Trustee and the  Indenture  Trustee on or before the  Determination  Date if the
Note  Balances as of the related  Payment Date will be less than or equal to 10%
of the Initial Note  Balances.  The Servicer  shall notify the Owner  Trustee in
writing 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  16.02.
Such price shall be deposited to the Collection Account in immediately available
funds by 11:00 a.m., New York City time, on the Payment Date and, upon notice to
the  Owner  Trustee  of such  deposit,  the Owner  Trustee  shall  transfer  the
Receivables and the Receivable Files to the purchaser, whereupon the Certificate
shall no  longer  evidence  any  right or  interest  in the  Receivables  or any
proceeds thereof.

                                  ARTICLE XVII

                            Miscellaneous Provisions

         SECTION 17.01. Amendment.  This Agreement may be amended by the Seller,
the Servicer, the Insurer (so long as an Insurer Default shall not have occurred
and be  continuing  and the Policy  shall be in effect)  and the Owner  Trustee,
without the consent of the  Certificateholder  or the  Noteholders,  to cure any
ambiguity,  to correct or supplement any provisions in this Agreement, or to add
any other  provisions  with respect to matters or questions  arising  under this
Agreement that shall not be inconsistent  with the provisions of this Agreement;
provided,  however,  that such action  shall not, as  evidenced by an Opinion of
Counsel,  adversely  affect  in  any  material  respect  the  interests  of  the
Certificateholder or the Secured Parties.

         Except as provided in the foregoing paragraph, (i) no amendment of this
Agreement  shall be effective  without the prior written  consent of the Insurer
and the holders of 51% of the  outstanding  Note Balances,  (ii) no amendment to
this Agreement  shall be recognized or be effective  without the written consent
of the Owner  Trustee and receipt by the Owner  Trustee of an Opinion of Counsel
to the effect that such  amendment  will not cause the Trust to be treated as an
association taxable as a corporation or as a publicly-traded partnership,  (iii)
the Indenture  Trustee shall receive a copy of all  amendments to this Agreement
and (iv) no amendment  which  affects the  Indenture  Trustee shall be effective
without the consent of the Indenture Trustee.

         So  long  as  an  Insurer  Default  shall  not  have  occurred  and  be
continuing,  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.

         Notwithstanding any provision in this Agreement to the contrary, in the
event an Insurer  Default  shall have  occurred and be  continuing or the Policy
shall have terminated in accordance  with its terms,  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 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 Seller, the Indenture Trustee,  the Owner Trustee or the
Noteholders or the Certificateholders; provided, that the consent of the Insurer
shall be required at all times with respect to any amendment of this Agreement.

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

         It shall not be necessary for the consent of the  Certificateholder  or
the Noteholders pursuant to this Section 17.01 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   authorization   of   the   execution   thereof   by  the
Certificateholder  shall be subject to such reasonable requirements as the Owner
Trustee may prescribe.

         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.

         Prior  to the  execution  of any  amendment  to this  Agreement  or the
Certificate  of Trust,  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  17.02(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 17.02.  Protection of Title to Trust.

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

         (b)  Neither  the  Seller  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  Seller  in
accordance with paragraph (a) above seriously  misleading  within the meaning of
ss.  9-402(7) of the UCC,  unless it shall have given the Owner  Trustee and the
Indenture Trustee at least 60 days' prior written notice thereof.

         (c) The  Seller  and the  Servicer  shall  give the Owner  Trustee  and
Indenture  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 and the Indenture  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 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, purchased or repurchased.

         (f) If at any time the Seller or the  Servicer  shall  propose to sell,
grant a security  interest in, or otherwise  transfer any interest in automotive
receivables to any  prospective  purchaser,  lender,  or other  transferee,  the
Servicer shall give to such prospective  purchaser,  lender, or other transferee
computer  tapes,  records,  or 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
Trust.

         (g) 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.

         (h) Upon request,  the Servicer  shall furnish to the Owner Trustee and
the Indenture Trustee,  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 Schedule A to this Agreement,  including
any supplements  thereto, 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  hereto,  and  upon the  delivery  of
         Subsequent Receivables,  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
         Initial  Receivables  and the Subsequent  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 such 90th
         day,  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.  Such
         Opinion of Counsel  shall also  specify  any  financing  statements  or
         continuation statements or other action necessary (based on the laws in
         effect  and the  facts  known  as of the  date of such  opinion)  to be
         executed  and  filed on or  before  March 31 of the  following  year to
         preserve and protect such interest.

         SECTION 17.03. Limitation on Rights of Certificateholder.  The death or
incapacity  of  the  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.

         No  Certificateholder  shall have any right to vote (except as provided
in  Section  17.01,  17.03 or  17.07) 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 Certificate,  be construed
so as to  constitute  the  Certificateholder  from time to time as members of an
association; nor shall any Certificateholder be under any liability to any third
person  by  reason  of any  action  taken  pursuant  to any  provision  of  this
Agreement.

         No  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 Certificateholder 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 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  17.04.  Governing  Law. This  Agreement  shall be construed in
accordance with the laws of the State of Delaware  applicable to agreements made
and to be performed within the State of Delaware,  and the obligations,  rights,
and  remedies  of the  parties  under  this  Agreement  shall be  determined  in
accordance with such laws.

         SECTION 17.05. 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 Seller to Leeanne W. Graziani, UAC Securitization
Corporation,  9240 Bonita Beach Road,  Suite  1109-A,  Bonita  Springs,  Florida
34135,  facsimile (941) 948-1855 or at such other address as shall be designated
by the Seller in a written notice to the Servicer or Trustee; (b) in the case of
the  Servicer  to Melanie  S.  Otto,  Union  Acceptance  Corporation,  250 North
Shadeland Avenue, Indianapolis,  Indiana 46219, facsimile (317) 231-7926, (c) in
the case of the Owner Trustee, at the Corporate Trust Office, (d) in the case of
the Insurer,  MBIA  Insurance  Corporation,  113 King Street,  Armonk,  New York
10504,  facsimile  (914)  765-3810,  Attention:  Insured  Portfolio  Management,
Structured Finance and (e) in the case of the Indenture Trustee at the Indenture
Trustee Office.  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  or  Noteholders  shall
receive such notice.

         SECTION 17.06.  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  17.07.  Assignment.  Notwithstanding  anything to the contrary
contained herein, except as provided below or in Sections 12.03 and 13.03 and as
provided in the provisions of this Agreement  concerning the  resignation of the
Servicer,  this  Agreement  may not be  assigned  by the Seller or the  Servicer
without   the   prior   written   consent   of  the   Owner   Trustee   and  the
Certificateholder.

         SECTION   17.08.   Certificate   Nonassessable   and  Fully  Paid.  The
Certificateholder  shall not be personally  liable for obligations of the Trust.
The interests  represented by the  Certificate  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  11.02,  the
Certificate shall be deemed fully paid and nonassessable.

         SECTION  17.09.   Nonpetition  Covenants.   Notwithstanding  any  prior
termination  of this  Agreement,  the Servicer,  UAC 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 Seller,  acquiesce,  petition or
otherwise  invoke or cause the Trust or the Seller to invoke the  process of any
court or government authority for the purpose of commencing or sustaining a case
against  the  Trust  or the  Seller  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
Seller or any  substantial  part of its property,  or ordering the winding up or
liquidation of the affairs of the Trust or the Seller.

         SECTION  17.10.  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.

<PAGE>

         SECTION 17.11. Third Party  Beneficiary.  This Agreement shall inure to
the benefit of the  Insurer,  the  Indenture  Trustee and their  successors  and
assigns.

                         [next page is signature page]

<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.

                                            UAC SECURITIZATION CORPORATION,
                                                     as Seller

                                            By /s/ Leeanne W. Graziani
                                              ----------------------------------
                                            TITLE:   President

                                            UNION ACCEPTANCE CORPORATION,
                                                     as Servicer

                                            By /s/ Melanie S. Otto
                                              ----------------------------------
                                            TITLE:  Vice President

                                            FIRST UNION TRUST COMPANY, NATIONAL
                                                ASSOCIATION,
                                                as Owner Trustee

                                            By /s/ Edward L. Truitt, Jr.
                                              ----------------------------------
                                            TITLE:  Vice President

Accepted and agreed to as of the day and year first above written.

                                            BNY MIDWEST TRUST COMPANY,
                                            not in its individual capacity but
                                            solely as Indenture Trustee

                                            By /s/ Cynthia Davis
                                              ----------------------------------
                                            TITLE:  Assistant Vice President

                       [SCHEDULES AND EXHIBITS OMITTED]EXECUTION COPY

                                    INDENTURE

                                     between

                            UACSC 2001-A OWNER TRUST
                                    as Issuer

                                       and

                            BNY MIDWEST TRUST COMPANY
                              as Indenture Trustee

                          Dated as of February 24, 2001

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page

ARTICLE I  DEFINITIONS AND INCORPORATION BY REFERENCE.........................2

SECTION 1.01.  Definitions....................................................2
SECTION 1.02.  Incorporation by Reference of Trust Indenture Act.............17
SECTION 1.03.  Rules of Construction.........................................18

ARTICLE II  THE NOTES........................................................19

SECTION 2.01.  Form..........................................................19
SECTION 2.02.  Execution, Authentication and Delivery........................19
SECTION 2.03.  Temporary Notes...............................................19
SECTION 2.04.  Registration; Registration of Transfer and Exchange...........20
SECTION 2.05.  Mutilated, Destroyed, Lost or Stolen Notes....................21
SECTION 2.06.  Intentionally Blank...........................................22
SECTION 2.07.  Payment of Principal and Interest; Defaulted Interest.........23
SECTION 2.08.  Cancellation..................................................24
SECTION 2.09.  Book-Entry Notes..............................................24
SECTION 2.10.  Notices to Clearing Agency....................................25
SECTION 2.11.  Definitive Notes..............................................25
SECTION 2.12.  Release of Pledged Assets.....................................25
SECTION 2.13.  Tax Treatment.................................................26
SECTION 2.14.  ERISA.........................................................26
SECTION 2.15.  CUSIP Numbers.................................................26
SECTION 2.16.  Restrictions on Transfer of the Class C Notes.................26

ARTICLE III  COVENANTS.......................................................27

SECTION 3.01.  Payment of Principal and Interest.............................27
SECTION 3.02.  Maintenance of Office or Agency...............................27
SECTION 3.03.  Money for Payments to be Held in Trust........................28
SECTION 3.04.  Existence.....................................................29
SECTION 3.05.  Protection of Trust Estate....................................29
SECTION 3.06.  Opinions as to Pledged Assets.................................30
SECTION 3.07.  Performance of Obligations; Successor Servicer................31
SECTION 3.08.  Negative Covenants............................................32
SECTION 3.09.  Annual Statement as to Compliance.............................32
SECTION 3.10.  Issuer May Consolidate, etc. Only on Certain Conditions.......33
SECTION 3.11.  Successor Transferee..........................................35
SECTION 3.12.  No Other Business.............................................35
SECTION 3.13.  Servicer's Obligations........................................35
SECTION 3.14.  Restricted Payments...........................................35
SECTION 3.15.  Notice of Events of Default...................................36
SECTION 3.16.  Further Instruments and Acts..................................36
SECTION 3.17.  Compliance with Laws..........................................36
SECTION 3.18.  Amendments of Trust Agreement.................................36

ARTICLE IV  SATISFACTION AND DISCHARGE.......................................36

SECTION 4.01.  Satisfaction and Discharge of Indenture.......................36
SECTION 4.02.  Application of Trust Money....................................37
SECTION 4.03.  Repayment of Monies Held by Paying Agent......................38

ARTICLE V  EVENTS OF DEFAULT; REMEDIES.......................................38

SECTION 5.01.  Events of Default.............................................38
SECTION 5.02.  Rights Upon Event of Default..................................39
SECTION 5.03.  Collection of Indebtedness and Suits for Enforcement
               by Indenture Trustee..........................................40
SECTION 5.04.  Remedies......................................................42
SECTION 5.05.  Optional Preservation of the Receivables......................43
SECTION 5.06.  Priorities....................................................43
SECTION 5.07.  Limitation of Suits...........................................44
SECTION 5.08.  Unconditional Rights of Noteholders to Receive
               Principal and Interest........................................45
SECTION 5.09.  Restoration of Rights and Remedies............................45
SECTION 5.10.  Rights and Remedies Cumulative................................45
SECTION 5.11.  Delay or Omission Not a Waiver................................46
SECTION 5.12.  Control by Noteholders........................................46
SECTION 5.13.  Waiver of Past Defaults.......................................46
SECTION 5.14.  Undertaking for Costs.........................................47
SECTION 5.15.  Waiver of Stay or Extension Laws..............................47
SECTION 5.16.  Action on Notes...............................................47
SECTION 5.17.  Performance and Enforcement of Certain Obligations............47

ARTICLE VI  THE INDENTURE TRUSTEE............................................48

SECTION 6.01.  Duties of Indenture Trustee...................................48
SECTION 6.02.  Rights of Indenture Trustee...................................51
SECTION 6.03.  Individual Rights of Indenture Trustee........................52
SECTION 6.04.  Indenture Trustee's Disclaimer................................52
SECTION 6.05.  Notice of Defaults............................................52
SECTION 6.06.  Reports by Indenture Trustee to Holders.......................52
SECTION 6.07.  Compensation and Indemnity....................................52
SECTION 6.08.  Replacement of Indenture Trustee..............................53
SECTION 6.09.  Successor Indenture Trustee by Merger.........................54
SECTION 6.10.  Appointment of Co-Indenture Trustee or Separate
               Indenture Trustee.............................................55
SECTION 6.11.  Eligibility...................................................56
SECTION 6.12.  Preferential Collection of Claims Against Issuer..............56
SECTION 6.13.  Representations and Warranties of Indenture Trustee...........56
ARTICLE VII  NOTEHOLDERS' LISTS AND REPORTS..................................57

SECTION 7.01.  Issuer to Furnish Names and Addresses of Noteholders..........57
SECTION 7.02.  Preservation of Information; Communications to Noteholders....57
SECTION 7.03.  Reports by Issuer.............................................58
SECTION 7.04.  Reports by Indenture Trustee..................................58

ARTICLE VIII  INTENTIONALLY BLANK............................................59

ARTICLE IX  DISTRIBUTIONS; STATEMENTS TO THE NOTEHOLDERS.....................59

SECTION 9.01.  Collection Account............................................59
SECTION 9.02.  Collections...................................................59
SECTION 9.03.  Purchase Amounts..............................................60
SECTION 9.04.  Distributions to Parties......................................60
SECTION 9.05.  Servicer Advances.............................................63
SECTION 9.06.  Net Deposits..................................................63
SECTION 9.07.  Intentionally Blank...........................................63
SECTION 9.08.  Intentionally Blank...........................................63
SECTION 9.09.  Payahead Account..............................................63
SECTION 9.10.  Pre-Funding Account...........................................64
SECTION 9.10.  Release of Pledged Assets.....................................64
SECTION 9.11.  Opinion of Counsel............................................65

ARTICLE X  CREDIT ENHANCEMENT................................................65

SECTION 10.01.  Subordination................................................65
SECTION 10.02.  Spread Account...............................................66
SECTION 10.03.  Policy.......................................................67

ARTICLE XI  SUPPLEMENTAL INDENTURES..........................................69

SECTION 11.01.  Supplemental Indentures Without Consent of Noteholders.......69
SECTION 11.02.  Supplemental Indentures With Consent of Noteholders..........70
SECTION 11.03.  Execution of Supplemental Indentures.........................72
SECTION 11.04.  Effect of Supplemental Indenture.............................73
SECTION 11.05.  Conformity With Trust Indenture Act..........................73
SECTION 11.06.  Reference in Notes to Supplemental Indentures................73

ARTICLE XII  REDEMPTION OF NOTES.............................................73

SECTION 12.01.  Redemption...................................................73
SECTION 12.02.  Form of Redemption Notice....................................73
SECTION 12.03.  Notes Payable on Redemption Date.............................74

ARTICLE XIII  MISCELLANEOUS..................................................74

SECTION 13.01.  Compliance Certificates and Opinions, etc....................74
SECTION 13.02.  Form of Documents Delivered to Indenture Trustee.............76
SECTION 13.03.  Acts of Noteholders..........................................77
SECTION 13.04.  Notices, etc., to Indenture Trustee, Issuer, Insurer
                and Rating Agencies..........................................77
SECTION 13.05.  Notices to Noteholders; Waiver...............................78
SECTION 13.06.  Alternate Payment and Notice Provisions......................79
SECTION 13.07.  Conflict With Trust Indenture Act............................79
SECTION 13.08.  Effect of Headings and Table of Contents.....................79
SECTION 13.09.  Successors and Assigns.......................................79
SECTION 13.10.  Separability.................................................79
SECTION 13.11.  Benefits of Indenture........................................79
SECTION 13.12.  Legal Holidays...............................................80
SECTION 13.13.  Governing Law................................................80
SECTION 13.14.  Counterparts.................................................80
SECTION 13.15.  Recording of Indenture.......................................80
SECTION 13.16.  Trust Obligation.............................................80
SECTION 13.17.  No Petition..................................................81
SECTION 13.18.  Inspection...................................................81
SECTION 13.19.  Limitation of Liability of Owner Trustee.....................81
SECTION 13.20.  Certain Matters Regarding the Insurer........................81

EXHIBITS

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
Exhibit  C         Form  of Class C Note
Exhibit  1         Rule 144A Letter
Exhibit  2         Non-Rule 144A Letter

<PAGE>

                    TRUST INDENTURE ACT CROSS-REFERENCE TABLE

   TIA                                                                SECTION OF
REQUIREMENT                                                           INDENTURE
-----------                                                           ----------

  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).................................................................7.04
  314(a).................................................................7.03
  314(b).................................................................3.06
  314(c)......................................................... 4.01, 13.01
  314(d)................................................................13.01
  314(e)................................................................13.01
  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

<PAGE>

         This INDENTURE,  dated as of February 24, 2001, is entered into between
UACSC 2001-A OWNER TRUST, a Delaware  business  trust, as issuer (the "Issuer"),
and BNY MIDWEST TRUST COMPANY,  an Illinois  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 and any 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 relating to the Receivables,  (iv) funds
deposited in the Spread Account, the Pre-Funding Account and the Class C Reserve
Account (and any Eligible Investments purchased with funds in any such account),
and funds  deposited in the  Collection  Account and the  Payahead  Account with
respect to the Receivables,  (v) the interest of the Issuer in any proceeds from
recourse to Dealers relating to the Receivables, (vi) all documents contained in
the Receivable Files relating to the Receivables,  (vii) all monies paid and all
monies due,  including  Accrued  Interest,  as of and after the Cutoff Date (but
excluding Accrued Interest paid prior to the Closing Date), (viii) the rights of
the Seller  pursuant  to the  Purchase  Agreements  and the rights of the Issuer
pursuant  to  the  Trust  Agreement  to  require  UAC  to  repurchase  any  such
Receivables  as to which  there  has been a breach  of the  representations  and
warranties  contained  therein,  (ix) the benefits of the Policy with respect to
the Receivables and (x) 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 and the Spread  Account,  and (b)
the funds  deposited in 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 the
Class C 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,  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 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.

         Except  as otherwise  specified  herein or as the context may 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.

         "Act" shall have the meaning specified in Section 13.03(a).

         "Administration Agreement" means the Administration Agreement, dated as
of  February  24,  2001 among the Trust,  the  Administrator  and the  Indenture
Trustee.

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

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

         "Authorized  Officer" means, with respect to the Issuer, any officer of
the Owner  Trustee  who is  authorized  to act for the Owner  Trustee in matters
relating to the Issuer and who is identified on the list of Authorized  Officers
delivered by the Owner Trustee 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 Funds" has the meaning provided in the Trust Agreement.

         "Avoided  Payment"  has  the  meaning  provided  in the  definition  of
Preference Amounts.

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

         "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 2.09.

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

         "Class A-1 Interest Rate" means 5.07% per annum.

         "Class A-1 Monthly Interest" means, (i) for the first Payment Date, the
product of one-three hundred sixtieth  (1/360th) of the Class A-1 Interest Rate,
the actual number of days from the Closing Date through the day before the first
Payment Date and the Initial Class A-1 Note Balance and (ii) for any  subsequent
Payment Date, the product of one-three  hundred sixtieth  (1/360th) of the Class
A-1 Interest  Rate,  the actual  number of days from the  previous  Payment Date
through the day before the related  Payment  Date and the Class A-1 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
Sections 9.04 and 9.10(c).

         "Class A-1 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-1.

         "Class A-1 Note Balance" means, at any time, the Initial Class A-1 Note
Balance minus all payments of Monthly Principal to Class A-1 Noteholders made up
to such time.

         "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  Seller,  the  Servicer  or UAC, or any Person  controlling,
controlled  by, or under  common  control  with the  Issuer,  the  Seller 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 5.03% per annum.

         "Class A-2 Monthly Interest" means, (i) for the first Payment Date, the
product of  one-twelfth  of the Class A-2 Interest Rate, the number of days from
the Closing Date  (assuming  each month has 30 days)  through the day before the
first Payment Date divided by 30 and the Initial Class A-2 Note Balance and (ii)
for any  subsequent  Payment Date,  the product of  one-twelfth of the Class A-2
Interest  Rate and 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
Sections 9.04 and 9.10(c).

         "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 to Class A-2 Noteholders made up
to such time.

         "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  Seller,  the  Servicer  or UAC, or any Person  controlling,
controlled  by, or under  common  control  with the  Issuer,  the  Seller 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 5.29% per annum.

         "Class A-3 Monthly Interest" means, (i) for the first Payment Date, the
product of  one-twelfth  of the Class A-3 Interest Rate, the number of days from
the Closing Date  (assuming  each month has 30 days)  through the day before the
first Payment Date divided by 30 and the Initial Class A-3 Note Balance and (ii)
for any  subsequent  Payment Date,  the product of  one-twelfth of the Class A-3
Interest  Rate and 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
Sections 9.04 and 9.10(c).

         "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 to Class A-3 Noteholders made up
to such time.

         "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 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  Seller,  the  Servicer  or UAC, or any Person  controlling,
controlled  by, or under  common  control  with the  Issuer,  the  Seller 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 5.61% per annum; provided, however, the
per annum rate shall be increased by 0.50%  beginning on the first  Payment Date
on which the Note Balances  (after giving effect to all payments of principal on
such  Payment  Date) will be less than 10% of the Initial  Note  Balances if the
Class A-4 Notes will not be redeemed on such Payment Date.

         "Class A-4 Monthly Interest" means, (i) for the first Payment Date, the
product of  one-twelfth  of the Class A-4 Interest Rate, the number of days from
the Closing Date  (assuming  each month has 30 days)  through the day before the
first Payment Date divided by 30 and the Initial Class A-4 Note Balance and (ii)
for any  subsequent  Payment Date,  the product of  one-twelfth of the Class A-4
Interest  Rate and 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
Sections 9.04 and 9.10(c).

         "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 to Class A-4 Noteholders made up
to such time.

         "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  Seller,  the  Servicer  or UAC, or any Person  controlling,
controlled  by, or under  common  control  with the  Issuer,  the  Seller 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 8.25% per annum;  provided,  however, the
per annum rate shall be increased by 0.50%  beginning on the first  Payment Date
on which the Note Balances  (after giving effect to all payments of principal on
such  Payment  Date) will be less than 10% of the Initial  Note  Balances if the
Class B Notes will not be redeemed on such Payment Date.

         "Class  B Monthly  Interest" means, (i) for the first Payment Date, the
product of one-twelfth of the Class B Interest Rate, the number of days from the
Closing Date  (assuming each month has 30 days) through the day before the first
Payment Date divided by 30 and the Initial Class B Note Balance and (ii) for any
subsequent Payment Date, the product of one-twelfth of the Class B Interest Rate
and 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 Sections
9.04 and 9.10(c).

         "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 to Class B Noteholders  made up
to such time.

         "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  Seller,  the  Servicer  or UAC,  or any  Person  controlling,
controlled  by, or under  common  control  with the  Issuer,  the  Seller 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 C Interest Rate" means 10.00% per annum; provided,  however, the
per annum rate shall be increased by 0.50%  beginning on the first  Payment Date
on which the Note Balances  (after giving effect to all payments of principal on
such  Payment  Date) will be less than 10% of the Initial  Note  Balances if the
Class C Notes will not be redeemed on such Payment Date.

         "Class  C Monthly  Interest" means, (i) for the first Payment Date, the
product of one-twelfth of the Class C Interest Rate, the number of days from the
Closing Date  (assuming each month has 30 days) through the day before the first
Payment Date divided by 30 and the Initial Class C Note Balance and (ii) for any
subsequent Payment Date, the product of one-twelfth of the Class C Interest Rate
and the Class C 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 C Monthly  Principal" means that portion of Monthly Principal to
be paid to Class C Noteholders on each Payment Date in accordance  with Sections
9.04 and 9.10(c).

         "Class C 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 C.

         "Class  C Note Balance"  means,  at any time,  the Initial Class C Note
Balance minus all payments of Monthly  Principal to Class C Noteholders  made up
to such time.

         "Class  C  Noteholder"  means the Person in whose  name the  respective
Class C 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 C Note registered in the name of
the  Issuer,  the  Seller,  the  Servicer  or UAC,  or any  Person  controlling,
controlled  by, or under  common  control  with the  Issuer,  the  Seller 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  C Required Reserve Balance" means $150,000 or such other amount
agreed to in  writing  by the  Issuer,  the Class C  Noteholders  and any Rating
Agency then rating the Class C Notes.

         "Class C Reserve  Account" shall have the meaning  specified in Section
10.04.

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

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

         "Closing Date" has the meaning provided in the Trust Agreement.

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

         "Controlling  Party" means the Insurer,  so long as no Insurer  Default
shall have occurred and be continuing and the Policy shall remain in effect, and
the Indenture Trustee, for so long as an Insurer Default shall have occurred and
be continuing  and the Policy shall not have  terminated in accordance  with its
terms.

         "Corporate  Trust  Office"  means the office of the  Indenture  Trustee
located at 2 North  LaSalle  Street,  Chicago,  Illinois  60602  (facsimile  no.
312-827-8562), Attention: Corporate Trust Administration.

         "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 2.09.

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

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

         "Eligible  Investment"  has the  meaning  specified  in the  Trust  and
Servicing Agreement.

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

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

         "Excess Yield" means, on any Payment Date, the Available Funds for such
Payment Date, minus the sum of (a) Monthly  Principal for such Payment Date, (b)
Monthly  Interest for such Payment Date, (c) the Monthly  Servicing Fee for such
Payment Date and (d) the Premium for such Payment Date.

         "Excess  Yield  Percentage"  means,  on any Payment Date,  the fraction
(expressed as an annualized  percentage)  of which (i) the numerator is equal to
Excess Yield and (ii) the denominator is equal to the aggregate Note Balances as
of the last day of the related  Collection  Period  (after  giving effect to any
distributions of Monthly Principal on such Payment Date).

         "Excess  Yield  Requirement" means the requirement that, on any Payment
Date, the average of the Excess Yield  Percentage  for six preceding  Collection
Periods shall be equal to or greater than 1.5%.

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

         "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 April 5, 2002,  with respect to the Class
A-1 Notes, May 10, 2004, with respect to the Class A-2 Notes,  November 8, 2005,
with respect to the Class A-3 Notes, July 9, 2007, with respect to the Class A-4
Notes,  January  8, 2008,  with  respect to the Class B Notes and April 8, 2009,
with respect to the Class C Notes.

         "Final Order" has the meaning specified in Section 10.03(b).

         "First  Loss Protection Amount" means, for each Payment Date, an amount
(not  less  than  zero)  equal to the  lesser  of (a)  5.00%  multiplied  by the
outstanding  Note Balances (such amount to be determined as of the prior Payment
Date (after giving effect to all  distributions  on such prior Payment Date), or
in the case of the first  Payment  Date, as of the Closing Date) less the sum of
(i) the  amount on deposit in the Spread  Account  (other  than the  Pre-Funding
Reserve  Balance)  (such amount to be  determined  as of the prior  Payment Date
(after giving effect to all distributions on such prior Payment Date) or, in the
case  of  the  first  Payment  Date,  as of  the  Closing  Date)  and  (ii)  the
Overcollateralization  Amount  (such  amount  to be  determined  as of the prior
Payment Date (after  giving  effect to all  distributions  on such prior Payment
Date) or, in the case of the first  Payment  Date,  the  Closing  Date);  (b) an
amount equal to 3.00% multiplied by the Initial Note Balances; and (c) the First
Loss Protection Amount for the prior Payment Date.

         "Fiscal  Agent"  shall  have the  meaning  specified  in the  Insurance
Agreement.

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

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

         "Indenture  Trustee"  means BNY  Midwest  Trust  Company,  an  Illinois
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
that such a Person (i) is in fact independent of the Issuer,  the Seller and any
of their respective Affiliates,  (ii) is not a director,  officer or employee of
the Issuer,  the Seller or any of their  respective  Affiliates,  (iii) is not a
person  related to any officer or  director of the Issuer,  the Seller 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 Seller or any of their
respective  Affiliates,  and (v) is not connected with the Issuer, the Seller 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 under the  circumstances  described in, and
otherwise complying with, the applicable  requirements of Section 13.01, made by
an  Independent  appraiser  or other  expert  appointed  by an Issuer  Order and
approved by the Indenture  Trustee in the exercise of reasonable  care, and such
opinion or  certificate  shall state that the signer has read the  definition of
"Independent"  in this Indenture and that the signer is  Independent  within the
meaning thereof.

         "Initial Class A-1 Note Balance" means $99,000,000.

         "Initial Class A-2 Note Balance" means $141,000,000.

         "Initial Class A-3 Note Balance" means $142,000,000.

         "Initial Class A-4 Note Balance" means $150,270,000.

         "Initial Class B Note Balance" means $35,000,000.

         "Initial Class C Note Balance" means $5,730,000.

         "Initial Note Balances" means $573,000,000.

         "Initial Spread Account Amount" means $0.00.

         "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 UAC, any of the
Warehouse  Subsidiaries or the Seller, the commencement,  after the date hereof,
of any  proceedings by or against UAC, any of the Warehouse  Subsidiaries or the
Seller 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
UAC, any of the Warehouse Subsidiaries or the Seller.

         "Insurance Premium" means Premium as defined in the Premium Side Letter
Agreement.

         "Insured Monthly Principal" means, for any Payment Date, the sum of (i)
the positive difference, if any, of:

                  (x)      the sum of the principal balance of the Class A Notes
                           and the Class B Notes after  application  of funds on
                           such Payment Date, and

                  (y)      the  Pool  Balance  on the  last  day of the  related
                           Collection Period, plus

         (ii)     the  additional  amount,  if any, which is necessary to reduce
                  the Note  Balance  of a class of Class A Notes or the  Class B
                  Notes to zero on its Final Maturity Date.

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

         "Issuer"  means the UACSC 2001-A Owner Trust as the issuer of the Notes
under this Indenture and its permitted successors and assigns.

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

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

         "Monthly  Principal"  for any  Payment  Date will  equal the sum of the
following:

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

         (ii)     the  additional  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)    any amounts distributed pursuant to Section 9.10(c).

         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.  In no event will Monthly  Principal exceed the Outstanding
         Note Balances.

         "Net  Cumulative  Loss Event" means with  respect to any Payment  Date,
when on such Payment Date,  the Net  Cumulative  Loss  Percentage  (adjusted for
future   Liquidation   Proceeds  as  estimated  by  the  Servicer)  exceeds  the
corresponding percentage set forth below:

                  Payment             Net Cumulative
                  Dates               Loss Percentage
                  -----------------------------------
                  1 -6                      0.60%
                  7 -12                     1.50%
                  13-18                     2.50%
                  19-24                     3.25%
                  25-30                     3.75%
                  31-36                     4.50%
                  37-42                     5.00%
                  43-48                     5.50%
                  49+                       5.75%

The Net Cumulative  Loss Event will be deemed to be cured on the Payment Date on
which the Net  Cumulative  Loss  Percentage  (adjusted  for  future  Liquidation
Proceeds as  estimated  by the  Servicer)  for such Payment Date and the two (2)
immediately  preceding Payment Dates is less than the percentage set forth above
corresponding to each such Payment Date.

         "Net  Cumulative  Loss  Percentage"  means,  for any Payment Date,  the
fraction  (expressed  as a  percentage)  of which the numerator is the aggregate
Principal Balance of all Defaulted  Receivables as of such Payment Date less the
aggregate  amount of Liquidation  Proceeds  received after the Cutoff Date as of
such Payment Date and (ii) the denominator is the Original Pool Balance.

         "Net Principal Policy Amount" means the Initial Note Balances minus the
Initial Class C Note Balance 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, a Class B Note or a Class C Note.

         "Note Balances" means, at any time, the Initial Note Balances minus all
payments of principal  made to the  Noteholders  up to such time. The term "Note
Balance" means the Outstanding principal balance of a particular Class of Notes,
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" has the meaning provided in the definition of Holder.

         "Note Owner" means,  with respect to a Book-Entry  Note, the Person who
is the owner of such Book-Entry  Note, as reflected on the books of the 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 13.01,  and delivered to
the Indenture Trustee.

         "Opinion of Counsel" means one or more written  opinions of counsel who
may, except as otherwise  expressly provided in this Indenture,  be employees of
or counsel to the  Seller 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 13.01,  and
shall be in form and substance  satisfactory  to the Indenture  Trustee,  and if
addressed to the Insurer, satisfactory to the Insurer.

         "Original  Pool  Balance"  has  the  meaning  specified  in  the  Trust
Agreement.

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

                  (i)  Notes  theretofore  cancelled  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,  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  Seller  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  Seller  or any of  their  respective
         Affiliates.

         "Overcollaterization  Amount"  shall mean,  for any Payment  Date,  the
positive difference, if any, of:

         (a)      the sum of (i) the Pool Balance on the last day of the related
                  Collection  Period  and (ii) any  amounts  on  deposit  in the
                  Pre-Funding Account; and

         (b)      the sum of the principal  balance of the Class A Notes and the
                  Class B Notes after application of funds on such Payment Date.

         "Owner Trustee" means First Union Trust Company,  National Association,
acting not in its  individual  capacity  but  solely as trustee  under the Trust
Agreement on behalf of the Trust.

         "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.

         "Payment Date" has the meaning provided in the Trust Agreement.

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

         "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 Class A Noteholders  and the Class B Noteholders and having a
maximum  amount  available to be drawn in respect of the Monthly  Servicing Fee,
Monthly Interest and Insured Monthly Principal equal to the Policy Amount.

         "Policy Amount" on any Payment Date means:

         (A)      the sum of:

                  (x) the Monthly Servicing Fee;

                  (y) Class A Monthly Interest and Class B Monthly Interest; and

                  (z) the lesser of (i) the  Outstanding  Note  Balances  of the
         Class A Notes and the Class B Notes on such Payment Date (after  giving
         effect to any  distributions of Available Funds and any funds withdrawn
         from the Spread Account to pay Monthly  Principal on such Payment Date)
         and (ii) the Net  Principal  Policy  Amount (after giving effect to any
         distributions  of  Available  Funds  and any funds  withdrawn  from the
         Spread Account to pay Monthly Principal). less:

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

         "Preference Amounts" means any amount guaranteed pursuant to the Policy
which  is  voided  (a  "Preference  Event")  under  any  applicable  bankruptcy,
insolvency,  receivership or similar law in an Insolvency Proceeding,  and, as a
result of such a Preference  Event,  the Indenture  Trustee or any Noteholder is
required to return such voided  payment,  or any portion of such voided  payment
made or to be made in respect of the Notes (an "Avoided Payment").

         "Premium Side Letter Agreement" means the letter dated the Closing Date
as defined in the Insurance Agreement.

         "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;

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

         (6)      to the Class C Noteholders  until the Class C 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 on any Payment Date to
pay the required payment of Class A Monthly  Principal to Class A Noteholders in
full,  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)
Standard  & Poor's  shall  have been given ten  Business  Days (or such  shorter
period as is  acceptable  to Standard & Poor's)  prior  notice  thereof and that
Standard & Poor's shall have notified the Seller, 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)
Moody's  shall have been given ten Business  Days (or such shorter  period as is
acceptable  to Moody's)  prior  notice  thereof and copies of all  documentation
relating to 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 Class A Notes and the Class B Notes is  investment
grade.

         "Record Date" means, with respect to a Payment Date or Redemption Date,
the close of business on the Business  Day  immediately  preceding  such Payment
Date or Redemption Date, or, in the event that Definitive Notes are issued,  the
close of business on the last day of the related Collection Period.

         "Recoveries of Advances" means, for any Collection Period, all payments
received by the Servicer by or on behalf of Obligors  (other than  Obligors with
respect to Defaulted  Receivables  and excluding  reimbursements  of Outstanding
Advances on  Defaulted  Receivables  pursuant to Section 9.05 hereof and Section
9.04(a)(i)  of  the  Indenture)  during  such  Collection  Period   representing
recoveries  of  Interest  Shortfalls  for  which  Advances  were  made for prior
Collection Periods.

         "Redemption  Date" means the Payment Date  specified by the Servicer or
the Issuer pursuant to Section 12.01.

         "Redemption Price" means an amount equal to the unpaid principal amount
of the Notes redeemed plus accrued and unpaid interest thereon at the respective
interest  rates of each Class of Notes being so redeemed  to but  excluding  the
Redemption Date.

         "Required Cash Floor" means, on each Payment Date, 1.00% of the Initial
Note Balances; provided, that on any Payment Date on which a Net Cumulative Loss
Event has occurred and has not been cured,  the Required  Cash Floor shall equal
2.00% of the Initial Note Balances;  provided further,  that in the event that a
Net Cumulative  Loss Event,  an Event of Default,  or a Trigger Event shall have
occurred  and then been  cured and the First  Loss  Protection  Amount  shall be
greater than zero,  the Required Cash Floor shall equal the greater of (a) 1.00%
of the  Initial  Note  Balances,  and (b) the  product  of (x) a  fraction,  the
numerator  of which is the  amount  on  deposit  in the  Spread  Account  at the
beginning  of the first  Collection  Period  commencing  after any such event is
cured,  and the denominator of which is the Note Balances as of the beginning of
such  Collection  Period,  and  (y)  the  Note  Balances  as of  the  end of the
Collection Period related to the current Payment Date.

         "Required Spread Amount" means, on each Payment Date, the Required Cash
Floor;  provided,  that on or after the first  Payment  Date on which the Excess
Yield  Requirement  has not been met,  the Required  Spread  Amount shall be the
greater of (a) the Required  Cash Floor then in effect and (b) 5.00% of the Note
Balances as of the end of the Collection  Period related to the current  Payment
Date. Notwithstanding the foregoing, upon and during the continuance of an Event
of 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 Spread  Account,  after giving effect to any draws on the Policy,
draws on the Spread Account and other distributions  pursuant to Section 9.04 on
such Payment Date. Once such Event of Default or Trigger Event has been cured or
discontinued,  the Required  Spread  Amount shall be determined as otherwise set
forth above.  The Required Spread Amount may be met by a combination of cash, in
an amount not less than the Required Cash Floor,  and the  Overcollateralization
Amount  and  shall be  determined  without  regard  to the  Pre-Funding  Reserve
Balance.

         "Responsible  Officer"  means,  when used with respect to the Indenture
Trustee,  any officer  within the  corporate  trust  department of the Indenture
Trustee  including  any vice  president,  assistant  vice  president,  assistant
treasurer,  assistant  secretary or any other officer of the  Indenture  Trustee
customarily  performing  functions similar to those performed by 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.

         "Rule 144A" shall have the meaning specified in Section 2.16.

         "Sale" shall have the meaning specified in Section 2.16.

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

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

         "Spread Account" shall have the meaning specified in Section 10.02(a).

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

         "Termination Date" means the latest of (i) the expiration of the Policy
and the return of the Policy to the Insurer for  cancellation,  (ii) the date on
which the Insurer shall have received payment and performance of all amounts and
obligations  which the Issuer may owe to or on behalf of the Insurer  under this
Indenture and (iii) the date on which the Indenture  Trustee shall have received
payment and performance of all amounts and obligations  which the Issuer may owe
to or on behalf of the  Indenture  Trustee  for the  benefit of the  Noteholders
under this Indenture or the Notes.

         "Total Floor Amount" shall equal the sum of the Required Cash Floor and
the Class C Note Balance.

         "Trigger Event" has the meaning provided in the Insurance Agreement.

         "Trust Agreement" means the Trust and Servicing Agreement,  dated as of
the date hereof, among the Seller, 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.

         "UAC" means Union Acceptance Corporation,  an Indiana corporation,  and
its successors.

         "Underwriter"  means each of Banc of America Securities LLC and Salomon
Smith Barney, Inc.

         "Underwriter Exemption" means the exemption granted to each Underwriter
by the U.S. Department of Labor, as amended by Prohibited  Transaction Exemption
("PTE") 97-34 and PTE 2000-58.

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

                                   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, Class B Notes and Class C 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, B and C 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) 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  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,  the Initial Class B Note
Balance and the Initial Class C 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.

         (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 any one 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 the initial  "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  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 11.06 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  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  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.  Intentionally Blank.

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

         (a) Each Class of Notes  shall  accrue  interest  as  provided  in this
Indenture at the related  interest rate for such Class,  and such interest shall
be payable on each Payment Date as specified  herein,  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 2.11, 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  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 12.01),  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 this  Indenture  and 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  and the Policy  shall be in  effect,  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  terminated in accordance  with its
         terms, the date on which the Noteholders  representing not less than 66
         2/3%  of  the  Note  Balances  shall  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 12.02. In addition,  the Administrator  shall
notify the Insurer and the Rating Agencies upon the final payment of interest on
and principal of each Class of Notes,  and upon the termination of the Trust, in
each case pursuant to the Administration Agreement.

         SECTION  2.08.   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 disposed  of by the  Indenture
Trustee in accordance with its standard practices.

         SECTION 2.09. Book-Entry Notes. The Notes, upon original issuance, will
be issued in the form of typewritten Notes representing the Book-Entry Notes, to
be  delivered  to DTC,  the initial  Clearing  Agency,  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 2.11. Unless and until definitive, fully registered Notes
(the  "Definitive  Notes")  have been issued to Note Owners  pursuant to Section
2.11:

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

                  (ii) the Note  Registrar  and the  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 2.11,
         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 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 2.10.  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
2.11,  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 2.11.  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,  Note Owners
representing  in the aggregate more than 50% of the Note Balances of all Classes
of Notes advise 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 2.12.  Release of Pledged Assets.  Subject to Section 13.01 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)(l) 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  2.13.  Tax  Treatment.   The  Issuer  has  entered  into  this
Indenture,  and the Notes will be issued,  with the intention that, for federal,
state and local income,  single  business and franchise tax purposes,  the Notes
will qualify as indebtedness  of the Issuer secured by the Pledged  Assets.  The
Issuer, by entering into this Indenture, and each Noteholder,  by its acceptance
of its Note  (and  each  Note  Owner by its  acceptance  of an  interest  in the
applicable  Book-Entry  Note),  agree to treat the Notes for federal,  state and
local income,  single business and franchise tax purposes as indebtedness of the
Issuer.

         SECTION 2.14.  ERISA.

         (a) Each  purchaser or  transferee  of a Class A Note that is a Benefit
Plan (as such term is defined in ERISA) 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, the
Underwriter  Exemption or other  applicable  exemption  providing  substantially
similar relief have been satisfied.

         (b) Each  purchaser or  transferee  of a Class B Note that is a Benefit
Plan (as such term is defined in ERISA) shall be deemed to have represented that
the relevant  conditions for exemptive  relief under the  Underwriter  Exemption
have been satisfied.

         (c) Each  purchaser or  transferee of a Class C Note shall be deemed to
have  represented  that it is not a  Benefit  Plan (as such term is  defined  in
ERISA).

         SECTION 2.15.  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.

         SECTION 2.16.  Restrictions on Transfer of the Class C Notes. No Holder
of a Class C Note may sell,  transfer or otherwise  dispose of (each,  a "Sale")
any Class C Note, or any interest in any Class C Note, held by it unless:

                  (a) such Sale is to a "qualified  institutional  buyer" within
         the meaning of Rule 144A ("Rule 144A") promulgated under the Securities
         Act that  purchases  for its own  account or for the account of another
         Person that is a qualified  institutional  buyer, which Person is aware
         that the  proposed  Sale is being made in  reliance on Rule 144A and to
         whom such Sale is being made  pursuant to an available  exemption  from
         the registration requirements of applicable state securities laws, and,
         prior to the proposed Sale,  such transferee has executed and delivered
         to  the   Indenture   Trustee  and  the  Seller  an  investor   letter,
         substantially in the form of Exhibit 1 to this Agreement, or

                  (b)  such  Sale  is  being  made  pursuant  to  an  applicable
         exemption from the registration  requirements of the Securities Act and
         applicable  state  securities laws and, prior to the proposed Sale such
         transferring  Holder  and the  proposed  transferee  each  provide  the
         Indenture Trustee and the Seller with an investor letter, substantially
         in the form of Exhibit 2 to this  Agreement  and, if  requested  by the
         Indenture  Trustee or the Seller,  an Opinion of Counsel,  certificates
         and/or  other  information  in  each  case  satisfactory  in  form  and
         substance  to the  Indenture  Trustee  and the Seller,  concerning  the
         proposed Sale and the availability of such exemption.

No  Holder  of a Class C Note or other  Person  acting  on  behalf  of a Class C
Noteholder  shall use any  means of  general  solicitation  or  distribution  in
connection  with the sale of any Class C Note.  Each of the Class C Notes  shall
bear a  legend  substantially  as set  forth  in the  form  of the  Class C Note
attached hereto as Exhibit C.

                                   ARTICLE III

                                   COVENANTS

         SECTION 3.01.  Payment of Principal and Interest.  The Issuer will duly
and  punctually  pay Monthly  Interest on and Monthly  Principal of the Notes in
accordance with the terms of the Notes and this Indenture.  Without limiting the
foregoing,  subject to Section 9.04(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 of interest and/or
principal  to any  Noteholder  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.

         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,  the
Pre-Funding  Account  or 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,  the  Pre-Funding
Account or the Payahead  Account for payments with respect to the 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 by the
         Paying Agent or otherwise disposed of as herein provided;

                  (ii) give the Indenture  Trustee  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, 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 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.

         (e) 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;  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 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;

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

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

                  (iv) enforce any of the Pledged Assets;

                  (v) preserve  and defend  title to the Pledged  Assets and the
         rights of the  Indenture  Trustee and the  Noteholders  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,  which are
prepared and delivered to the Indenture Trustee.

         SECTION 3.06.  Opinions as to Pledged Assets.

         (a) On the Closing  Date,  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 UCC  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 such 90th day,  to the  effect  that,  in the
opinion  of  such  counsel,   either  (i)  all  UCC  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.  Such Opinion of Counsel  shall also  specify any  financing
statements or continuation  statements or other actions  necessary (based on the
laws in  effect  and the  facts  known  as of the  date of such  opinion)  to be
executed and filed on or before March 31 of the  following  year to preserve and
protect such interest.

         SECTION 3.07.  Performance of Obligations; Successor Servicer.

         (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) 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 UAC 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  (unless an Insurer  Default has occurred and is continuing) and the
Holders of at least a majority of the Outstanding 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 to 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
Section  13.05 or 14.01 of the Trust  Agreement,  the  Indenture  Trustee  shall
appoint a successor Servicer acceptable to the Insurer. If the Indenture Trustee
shall  succeed  to the  Servicer's  duties as  servicer  of the  Receivables  as
provided  in  Section  14.02  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  Six  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.

         (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  (unless an Insurer Default shall
         have occurred and be continuing);

                  (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  security  interest  (other than with
         respect  to any such  tax,  mechanics'  or other  lien) in the  Pledged
         Assets; or

                  (iv)     dissolve or liquidate in whole or in part.

         SECTION  3.09.  Annual  Statement  as to  Compliance.  The Issuer  will
deliver to the Indenture Trustee 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 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 the  Issuer's  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)
         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 no Insurer Default shall have occurred and be continuing),  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 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;

                  (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  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 Three 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 no Insurer Default shall have occurred and be
         continuing,  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 consolidation or merger.

         (b) The Issuer shall not convey or 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 no Insurer  Default shall have occurred and
         be  continuing),  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
         transfer,  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 transfer;

                  (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 no  Insurer  Default  shall have
         occurred  and be  continuing)  to the effect  that such  conveyance  or
         transfer  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  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 transfer 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 no Insurer Default shall have occurred and be
         continuing,  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 transfer the
         properties or assets of the Issuer has a net worth,  immediately  after
         such conveyance or transfer,  that is (A) greater than zero and (B) not
         less  than the net  worth of the  Issuer  immediately  prior to  giving
         effect to such conveyance or transfer.

         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.  Servicer's  Obligations.  The  Issuer  shall  cause the
Servicer to comply with the Servicer's obligations under the Trust Agreement.

         SECTION 3.14. 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,  distributions  to the  Servicer,  the
Indenture  Trustee,  the Owner Trustee,  the Insurer,  the  Noteholders  and the
Certificateholder  as contemplated by, and to the extent funds are available for
such  purpose  under,  the Trust  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  3.15.  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 Seller of their respective obligations under the Trust Agreement.

         SECTION  3.16.  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 3.17.  Compliance  with Laws.  The Issuer shall comply with the
requirements  of all  applicable  laws,  the  non-compliance  with which  would,
individually or in the aggregate, materially and adversely affect the ability of
the Issuer to perform its  obligations  under the Notes,  this  Indenture or any
other Basic Document.

         SECTION 3.18. Amendments of Trust Agreement. The Issuer shall not agree
to any  amendment  to Section  17.01 of the Trust  Agreement  to  eliminate  the
requirements  thereunder that 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,  3.17  and  3.18,  (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 Class B 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  Final
         Maturity Date of the Class C 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 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 C Notes or the  Redemption  Date (if  Notes  shall  have been  called  for
redemption pursuant to Section 12.01), 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 under this Indenture and the Basic Documents; and

         (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 13.01(a) and,
subject to Section  13.02,  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.

         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 any Paying Agent other than the Indenture  Trustee under
the provisions of this  Indenture with respect to such Notes shall,  upon demand
of the Issuer, be paid to the Indenture Trustee to be held and applied according
to Section  3.03 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 any one of the
following  events  (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or pursuant
to any judgment,  decree or order of any court or any order,  rule or regulation
of any administrative or governmental body):

                  (i)  default in the  payment of any  interest on any Note when
         the same becomes due and payable and such default shall  continue for a
         period of five days after notice  thereof is given to the Issuer by the
         Indenture  Trustee,  the Insurer or the Servicer,  or to the Issuer and
         the  Indenture  Trustee  by the  Holders  of at  least  25% of the Note
         Balances;

                  (ii) default in the payment of any  principal  due and payable
         on 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 by the Indenture Trustee, the Insurer or
         the Servicer, or to the Issuer and the Indenture Trustee by the Holders
         of at least 25% of the Note Balances;

                  (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 60 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 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;

                  (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,  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;

provided, however, that so long as no Insurer Default shall have occurred and be
continuing and the Policy shall be in effect,  neither the Indenture Trustee nor
the Noteholders may declare an Event of Default under the Indenture.  So long as
no Insurer Default shall have occurred and be continuing and the Policy shall be
in effect,  an Event of Default shall occur only upon delivery by the Insurer to
the Indenture  Trustee of notice of the  occurrence of an Event of Default.  The
failure to pay principal on a Class of Notes shall not result in the  occurrence
of an Event of Default until the Final Maturity Date for such Class of Notes.

         (b) The Issuer shall deliver to the Indenture  Trustee and the Insurer,
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  no  Insurer  Default  shall  have  occurred  and  be
continuing,  if an Event of Default shall have occurred and be continuing,  then
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 an Insurer  Default shall have occurred and be continuing or the
Policy  shall have  terminated  in  accordance  with its terms,  and an Event of
Default shall have occurred and be continuing,  the Indenture  Trustee shall, if
so requested in writing by the Noteholders  representing at least 66 2/3% of the
Note Balances, 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) Following any Event of Default, the Insurer may elect to prepay all
or any  portion of the  outstanding  amount of the Class A Notes and the Class B
Notes,  plus  accrued  interest  thereon  to the date of  payment  and  shall be
subrogated  to the  rights  of such  Noteholders;  provided,  however,  that the
Insurer shall fulfill its obligations under the Policy.

         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 no Insurer  Default  shall have occurred and be
continuing  and the Policy shall be in effect,  at the direction of the Insurer,
or (ii) if an Insurer  Default  shall have  occurred  and be  continuing  or the
Policy shall have  terminated in accordance  with its terms, at the direction of
the  Noteholders  representing  at least 66 2/3% of the Note  Balances,  as more
particularly provided in Section 5.04, proceed to protect and enforce the rights
of the  Noteholders,  by such appropriate  Proceedings as the Indenture  Trustee
shall deem most  effective to protect and enforce any such  rights,  whether for
the specific  enforcement  of any covenant or agreement in this  Indenture or in
aid of the exercise of any power granted herein,  or to enforce any other proper
remedy or legal or  equitable  right  vested in the  Indenture  Trustee  by this
Indenture or by law.

         (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,  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.

         (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,
the Indenture Trustee shall (subject to Section 5.04(b) below and Section 5.05),
if no Insurer  Default shall have  occurred and be continuing  and if the Policy
shall be in effect,  at the  direction  of the  Insurer,  or (ii) if an Event of
Default  shall have  occurred and be  continuing,  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  or if the Policy  shall have  terminated  in
accordance with its terms,  at the direction of the Noteholders  representing at
least 66 2/3% of the Note Balances, 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  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
         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 no Insurer  Default  shall have
         occurred  and be  continuing  and so long  as the  Policy  shall  be in
         effect, if an Event of Default specified in Section 5.01(a)(i), (ii) or
         (iii) 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 Indenture Trustee  reasonably
         believes  that 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 Noteholders  representing at least 66 2/3% of the Note
         Balances,  (so long as an Insurer  Default  shall have  occurred and be
         continuing or so long as the Policy shall have terminated in accordance
         with its terms), 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
shall have been declared to be due and payable  under Section 5.02  following an
Event of Default and such declaration and its  consequences  shall not have 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.

         (a) If the Notes shall have been  declared to be due and payable  under
Section  5.02  following  an  Event of  Default  and  such  declaration  and its
consequences shall not have been rescinded and annulled,  any money collected by
the Indenture  Trustee with respect to the Pledged  Assets or the Notes 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 or the
Notes  (excluding  any  payments  made  under the  Policy),  shall be applied as
follows, notwithstanding the provisions of Section 9.04(a) to the contrary:

                  (i)  first,  to pay  any  unpaid  Monthly  Servicing  Fee  and
         Outstanding Advances to the Servicer;

                  (ii)  second,  to pay  any  accrued  and  unpaid  fees  of the
         Indenture Trustee and the Owner Trustee without  preference or priority
         of any kind;

                  (iii) third, to pay Monthly  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 Note  Balance of each Class of Class A
         Notes, until the Note Balance of each Class of Class A Notes is reduced
         to zero;

                  (v)  fifth,  to pay  Monthly  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
         Class B Note Balance is reduced to zero;

                  (vii) seventh, to pay the aggregate amount of all unreimbursed
         draws  made on the  Policy in respect  of the  Monthly  Servicing  Fee,
         Monthly Interest and Insured Monthly  Principal,  plus accrued interest
         thereon at the rate provided in the Insurance Agreement;

                  (viii)  eighth,  to pay Monthly  Interest on the Class C Notes
         (including interest accrued on past due interest);

                  (ix) ninth,  to pay  principal  on the Class C Notes until the
         Class C Note Balance is reduced to zero;

                  (x) tenth,  to pay any other amounts owing under the Insurance
         Agreement;

                  (xii)  eleventh,  to the  Spread  Account,  to be  applied  in
         accordance  with Section 10.02 hereof and in accordance  with the Trust
         Agreement.

         (b) The  Indenture  Trustee may fix a record date and payment  date for
any payment to  Noteholders  pursuant to this  Section.  At least 15 days before
such record date,  the Issuer shall mail to each  Noteholder  and the  Indenture
Trustee a notice that states the 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 shall have 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
         shall 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  shall  have  offered  to the
         Indenture Trustee indemnity  reasonably  satisfactory to it 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  shall  have  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; and

                  (vi) an Insurer Default shall have occurred and be continuing,
         or the Policy shall have terminated in accordance with its terms.

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  which 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 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  shall have instituted any Proceeding to
enforce any right or remedy under this Indenture and such Proceeding  shall have
been  discontinued  or  abandoned  for any reason or shall have 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 Noteholders.  The Insurer,  or if any Insurer
Default  shall have  occurred  and be  continuing,  or if the Policy  shall have
terminated in accordance  with its terms,  the Holders of a majority of the Note
Balances 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.

         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 or, if an Insurer  Default shall
have  occurred  and be  continuing  or if the Policy  shall have  terminated  in
accordance with its terms, the Noteholders representing not less than a majority
of the Note Balances,  may waive any past Default or Event of Default and/or 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  attorneys' fees and expenses,
against  any party  litigant  in such  suit,  in the  manner  and to the  extent
provided by the Trust  Indenture  Act; 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 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 any  manner  whatsoever,  claim  or take  the  benefit  or
advantage  of, any stay or extension law or any  valuation or  appraisement  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 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  Controlling  Party to do so
and at the Administrator's expense, the Issuer shall take all such lawful action
as the  Controlling  Party may request to compel or secure the  performance  and
observance  by the  Seller  and the  Servicer  as  applicable,  of each of their
obligations  to the Issuer 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
Controlling Party,  including the transmission of notices of default on the part
of the  Seller  or the  Servicer  thereunder  and the  institution  of  legal or
administrative  actions or  Proceedings  to compel or secure  performance by the
Seller or the Servicer of each of their obligations under the Trust Agreement.

         (b) If the Indenture  Trustee is the Controlling  Party and if an Event
of Default shall have occurred and be continuing, the Indenture Trustee may, and
at the direction  (which  direction  shall be given in writing and may include a
facsimile)  of the Holders of 66 2/3% of the Note Balances  shall,  exercise all
rights, remedies, powers, privileges and claims of the Issuer against the Seller
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  Seller  or the  Servicer  of each of  their  obligations  to the  Issuer
thereunder  and to give  any  consent,  request,  notice,  direction,  approval,
extension  or waiver under the 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 shall have occurred and be  continuing,  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 its  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:

                  (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,  and will hold any proceeds of any
claim on the Policy in trust  solely for  application  as  provided in the Trust
Agreement.

         (j) The Indenture Trustee shall have no discretionary duties other than
performing those  ministerial acts set forth in this Indenture to accomplish the
purpose of this Trust as set forth in this  Indenture or as  otherwise  required
under the TIA.

         (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 Holders
of Notes evidencing a majority of the Outstanding Note Balances, 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  UCC  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.

         (o)  Notwithstanding  the  foregoing  or any  other  provision  in this
Indenture  to the  contrary,  the  Indenture  Trustee  shall  be  liable  in its
commercial  capacity for losses  attributable to its failure to make payments on
Eligible  Investments issued by the Indenture Trustee in its commercial capacity
as principal obligor and not as Indenture Trustee,  in accordance with the terms
of the agreements or instruments governing any such Eligible Investments;

         (p)  The   Indenture   Trustee   shall   acknowledge   and  accept  the
Administration Agreement on behalf of the Secured Parties.

         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
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) 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
security or indemnity reasonably  satisfactory to it against the costs, expenses
and liabilities which may be incurred therein or thereby.

         (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 a majority of
Noteholders;  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 Indenture,  the Indenture  Trustee
may require indemnity  reasonably  satisfactory to it 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 shall have occurred and
be  continuing  and a Responsible  Officer of the  Indenture  Trustee shall have
actual  knowledge or shall have received  written notice thereof,  the Indenture
Trustee  shall mail to each  Noteholder  and the  Insurer  notice of the Default
within 90 days after it shall have occurred.  Except in the case of a Default in
payment of principal of or interest on any Note (including  payments pursuant to
the redemption of Notes),  the Indenture  Trustee may withhold the notice if and
so  long  as one of its  Responsible  Officers  in good  faith  determines  that
withholding the notice is in the interests of Noteholders.

         SECTION 6.06.  Reports by Indenture  Trustee to Holders.  The Indenture
Trustee shall deliver to each  Noteholder  such  information  as it  customarily
provides to enable  such  Holder to prepare  its  federal  and state  income tax
returns.

         SECTION 6.07.  Compensation and Indemnity.

         (a) 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 and expenses)  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 expense
incurred by the Indenture  Trustee  through the Indenture  Trustee's own willful
misconduct, negligence or bad faith.

         (b) 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(e) or (f) 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, and, unless an Insurer Default shall have occurred and be continuing or
if the Policy shall have terminated in accordance with its terms, at the request
of the Insurer shall, remove the Indenture Trustee if:

                  (i) the  Indenture  Trustee  shall have  failed 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 shall have  commenced 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 shall have consented 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 shall have made any assignment
         for the benefit of creditors or shall have failed  generally to pay its
         debts as such debts become due or shall have taken any corporate action
         in furtherance of any of the foregoing; or

                  (iv)  the  Indenture   Trustee  otherwise  shall  have  become
         incapable of acting.

         (b) 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.

          (c) 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 retiring Indenture Trustee shall promptly transfer all property
held by it as Indenture Trustee to the successor Indenture Trustee.

         (d) If a successor Indenture Trustee shall not have taken office within
30 days after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture  Trustee,  the Issuer or the Holders of a majority of the  Outstanding
Note Balances may, at the expense of the Issuer, petition any court of competent
jurisdiction for the appointment of a successor Indenture Trustee.

         (e) If the  Indenture  Trustee shall have failed 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.

         (f) 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 of 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.

         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 to 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.

         (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 Baa3 by Moody's  and shall have a combined  capital  and  surplus of at
least  $50,000,000  or shall be a member of a bank holding  system 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  Indenture
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 has taken all necessary action
to authorize the execution,  delivery and  performance by it of this  Indenture;
and

         (c)  this  Indenture  has  been  duly  executed  and  delivered  by the
Indenture Trustee and constitutes the legal, valid, and binding agreement of the
Indenture  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  apply  in  the  event  of  a  bankruptcy,  insolvency,
liquidation,  reorganization,   moratorium,  conservatorship,   receivership  or
similar occurrence  affecting the Indenture 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 VII

                         NOTEHOLDERS' LISTS AND REPORTS

         SECTION 7.01. Issuer to Furnish Names and Addresses of Noteholders. The
Issuer will  furnish or cause to be furnished  to the  Indenture  Trustee or the
Servicer  (i) not more than five days after the  earlier of (1) each Record Date
and (2) 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 to the Indenture Trustee,  but shall be provided by the
Note Registrar to the Servicer,  upon request,  as provided above. 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.

         (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 June 30 of each year.

         (c) Subject to Section 6.01, delivery of such reports,  information and
documents to the Indenture  Trustee is for  informational  purposes only and the
Indenture Trustee's receipt of such shall not constitute  constructive notice of
any information  contained  therein or determinable  from information  contained
therein,  including the Issuer's  compliance with any of its covenants hereunder
(as to which the Indenture  Trustee is entitled to conclusively rely exclusively
on Officer's Certificates).

         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 December 15 beginning  with the first
December  which is greater than three  months from the date hereof,  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

                              INTENTIONALLY BLANK

                                   ARTICLE IX

                  DISTRIBUTIONS; STATEMENTS TO THE NOTEHOLDERS

         SECTION 9.01.  Collection Account. The Issuer shall cause the Seller 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  upon  receipt  of  written  direction  from  the  Seller  in  Eligible
Investments  specified in such direction 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 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  9.02.  Collections.  The  Indenture  Trustee  shall review the
Servicer's Certificate prepared by the Servicer immediately upon receipt thereof
pursuant to Section 8.09 of the Trust Agreement.

         For any Payment  Date on which there will not be  sufficient  Available
Funds to make the distributions required pursuant to Sections 9.04(a)(i) through
(x), 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;  or, if the Notes shall have been  declared to be due and payable under
Section 5.02 following an Event of Default,  for any Payment Date on which there
will  not be  sufficient  Available  Funds to make  the  distributions  required
pursuant to Sections  5.06(a)(i)  through (ix), but excluding any  distributions
required by Section  5.06(a)(ii)  and Sections  5.06(a) (iv), (vi) or (ix) in an
amount in excess of the amount,  if any,  required to reduce the aggregate  Note
Balances as of the prior Payment Date (after giving effect to any  distributions
on the  prior  Payment  Date)  to the  Pool  Balance  at the end of the  related
Collection  Period,  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. In either case, if such deficiency exceeds the Available
Spread Amount,  the Indenture  Trustee shall notify the Insurer of the amount of
such excess  deficiency with respect to the  distributions  required by Sections
9.04(a)(i) through (ix) or Sections 5.06(a)(i) through (vii), as applicable.  To
the extent the  Insurer is  required  pursuant to the terms of the Policy to pay
the amount of such excess  deficiency  of the  Monthly  Servicing  Fee,  Monthly
Interest and Insured  Monthly  Principal,  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 as defined in the
Policy (appropriately completed) to the Fiscal Agent with respect to the Policy.

         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.

         If the Available  Funds (plus amounts  withdrawn  from the  Pre-Funding
Account or the Spread Account) for a Payment Date are insufficient to pay to the
Class C Noteholders the amounts required pursuant to Sections 9.04(a)(v) and (x)
or Sections  5.06(a)(viii) and (ix), as applicable,  the Indenture Trustee shall
withdraw from the Class C Reserve  Account,  up to the amount on deposit in such
account,  an amount equal to such deficiency and promptly deposit such amount in
the Collection Account.

         SECTION 9.03.  Purchase Amounts.  Pursuant to the Trust Agreement,  the
Servicer and the Seller 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 8.07 of the Trust Agreement. 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 aggregate  Optional  Disposition  Price for
Receivables  on such  Payment  Date  pursuant  to  Section  16.02  of the  Trust
Agreement.

         SECTION 9.04.  Distributions to Parties.

         (a) On each Payment Date (unless the Notes shall have been  declared to
be due and payable  under  Section  5.02  following  an Event of  Default),  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 Pre-Funding Account, the Spread Account or the Class C Reserve Account,
or drawn on the Policy pursuant to Section 9.02), to make the following payments
in the listed order of priority:

                  (i)  Without  duplication,  an amount  equal to the sum of (y)
         Outstanding   Advances  on  all  Receivables   that  became   Defaulted
         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;

                  (ii) To the extent not previously distributed to the Servicer,
         the Monthly Servicing Fee, including any such overdue Monthly Servicing
         Fee, to the Servicer;

                  (iii) Class A Monthly Interest (including any overdue amounts)
         to the Class A Noteholders;

                  (iv) Class B Monthly Interest  (including any overdue amounts)
         to  the  Class  B  Noteholders,   except  that  such  payment  will  be
         subordinate to Monthly  Principal  payable to Class A Noteholders under
         clause (vi) to the extent of principal  in respect of a Final  Maturity
         Date  for a Class of Class A Notes  on any  Payment  Date on which  the
         amount of Available Funds, plus funds withdrawn from the Spread Account
         or drawn on the  Policy  will not be  sufficient  to fully pay the Note
         Balance of such Class of Class A Notes.

                  (v) Class C Monthly  Interest  (including any overdue amounts)
         to  the  Class  C  Noteholders,   except  that  such  payment  will  be
         subordinate to Monthly  Principal  payable to Class A Noteholders under
         clause (vi) or to the Class B  Noteholders  under  clause  (vii) to the
         extent of principal in respect of a Final  Maturity Date for a Class of
         Class A Notes or the  Class B Notes on any  Payment  Date on which  the
         amount of Available Funds, plus funds withdrawn from the Spread Account
         or drawn on the  Policy  will not be  sufficient  to fully pay the Note
         Balance of such Class of Class A Notes or the Class B Notes.

                  (vi) Monthly Principal  (including any overdue amounts) to the
         Class A Noteholders, in accordance with the Principal Payment Sequence;

                  (vii) Monthly Principal (including any overdue amounts) to the
         Class B Noteholders in accordance with the Principal Payment Sequence;

                  (viii) The Insurance Premium,  including any overdue Insurance
         Premium,  plus  accrued  interest  thereon at the rate  provided in the
         Insurance Agreement, to the Insurer;

                  (ix) The aggregate  amount of all  unreimbursed  draws made on
         the Policy in respect of the Monthly  Servicing Fee,  Monthly  Interest
         and Insured Monthly  Principal,  plus accrued  interest  thereon at the
         rate provided in the Insurance Agreement, to the Insurer;

                  (x) Monthly  Principal  (including any overdue amounts) to the
         Class C Noteholders in accordance with the Principal Payment Sequence;

                  (xi) 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;

                  (xii) The amount of  Recoveries  of Advances,  to the Servicer
         (to the extent not  applied  pursuant  to (i) above on or prior to such
         Payment Date);

                  (xiii) The amount,  if any, which is necessary to increase the
         amount on deposit in the Spread Account to the Required  Spread Amount,
         to the Spread Account;

                  (xiv) The amount,  if any,  which is necessary to increase the
         amount  on  deposit  in the  Class C  Reserve  Account  to the  Class C
         Required Reserve Balance, to the Class C Reserve Account;

                  (xv) The balance for deposit in the Spread Account. The rights
         of the  Certificateholder  to  receive  distributions  from the  Spread
         Account are described in Sections 10.02(e) and (f).

         (b) (i) If on any Payment  Date  (other  than a Payment  Date after the
         Notes shall have been declared to be due and payable under Section 5.02
         following an Event of Default) there are not sufficient Available Funds
         to pay the distributions  required by Section 9.04(a)(iii) through (x),
         then the Available  Funds  (together  with amounts  withdrawn  from the
         Spread Account and/or drawn on the Policy, as applicable) payable under
         Section  9.04(a)(iii) through (vii) and (x) shall be allocated first to
         Class A  Noteholders  pari  passu  for the  payment  of Class A Monthly
         Interest,  second  to the Class B  Noteholders  in  respect  of Class B
         Monthly Interest,  third to the Class C Noteholders in respect of Class
         C Monthly  Interest,  fourth to the Class A  Noteholders  pari passu in
         respect of Class A Monthly Principal,  fifth to the Class B Noteholders
         in  respect  of Class B Monthly  Principal  and  finally to the Class C
         Noteholders  in  respect  of Class C 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  each  Class  of  Class A
         Noteholders  shall be based upon the relative  Outstanding Note Balance
         of each Class of Class A Notes.

                  (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  Insured  Monthly   Principal  payable  to  the  Class  A
         Noteholders or the Class B Noteholders  with respect to the immediately
         preceding  Payment Date as determined in accordance  with Sections 9.02
         and 9.04 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  Insured  Monthly   Principal   payable  to  the  Class  A
         Noteholders  or the Class B Noteholders  after a prepayment of the Note
         Balances  pursuant to this Section  9.04(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 8.09
         of the Trust Agreement.

                  (iv) 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 2.04 of this Indenture.

         (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 9.02, 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 9.04.

         (d) If the  Servicer has failed to provide the  Indenture  Trustee with
the notice  required  pursuant  to  Section  9.02,  the  Indenture  Trustee  may
calculate Monthly Interest and Monthly Principal and apply funds, if any, in the
Collection  Account  as of the  last  day of the  Collection  Period,  to make a
distribution of Monthly Interest and Monthly Principal to the Noteholders.

         SECTION  9.05.  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
9.04(a)(i),  and Outstanding  Advances with respect to such Receivable  shall be
reduced accordingly.

         SECTION 9.06. Net Deposits. For so long as UAC is the Servicer, UAC (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  13.06 of the  Trust  Agreement  (also in  whatever
capacity)  pursuant to Section 9.04,  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. Intentionally Blank.

         SECTION 9.08. Intentionally Blank.

         SECTION  9.09.  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  remitted to the
Servicer at least  monthly,  or as  frequently  as the Servicer  may  reasonably
request.  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
8.02(b)  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  8.02(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 9.02. Any
amount  deposited to the Collection  Account from a Payahead Account pursuant to
Section 9.09(b) shall be included in Available Funds under Section 9.02.

         SECTION 9.10.  Pre-Funding  Account. (a) On or before the Closing Date,
the Indenture Trustee shall establish and maintain a segregated trust account in
the  corporate  trust  department  of an Eligible Bank referred to herein as the
"Pre-Funding  Account".  Funds on deposit in the  Pre-Funding  Account  shall be
invested  in  Eligible  Investments  in the same  manner and subject to the same
limitation as the  investment  of funds in the  Collection  Account  pursuant to
Section 9.01,  including the  limitation  that Eligible  Investments  mature not
later than the Business Day prior to the next succeeding Payment Date; provided,
however,  that if the Seller  shall have given notice to the  Indenture  Trustee
designating the next Subsequent  Transfer Date such Eligible  Investments  shall
not be  required  to mature  until  the  Business  Day prior to such  Subsequent
Transfer Date.

         (b) On the Closing Date, the Seller will deposit the Initial Pre-Funded
Amount  in the  Pre-Funding  Account.  On each  Subsequent  Transfer  Date,  the
Servicer shall instruct the Indenture  Trustee to withdraw from the  Pre-Funding
Account an amount equal to the Principal  Balance of the Subsequent  Receivables
transferred to the Trust on such Subsequent Transfer Date and to distribute such
amount to or upon the order of the Seller upon  satisfaction  of the  conditions
set forth in the Trust Agreement with respect to such transfer.

         (c)(i) If the Pre-Funded Amount is greater than $100,000 on the Payment
Date on which the Funding Period ends (or, if the Funding Period does not end on
a Payment Date, on the first Payment  following the end of the Funding  Period),
after giving effect to any reductions in the Pre-Funding  Amount on such Payment
Date pursuant to paragraph (b) above,  the Servicer shall instruct the Indenture
Trustee to withdraw any remaining  amounts from the  Pre-Funding  Account and to
distribute  such amounts pro rata to the Noteholders of each Class of Notes then
outstanding.

         (ii) If the  Pre-Funded  Amount is reduced to  $100,000  or less on any
Payment Date, after giving effect to any reductions in the Pre-Funded  Amount on
such Payment Date pursuant to paragraph (b) above,  the Servicer  shall instruct
the  Indenture  Trustee to withdraw any remaining  amounts from the  Pre-Funding
Account and to deposit such amounts to the Collection  Account for  distribution
as  principal  of the  Receivables  to the Class of Notes  entitled  to  receive
principal distributions on such Payment Date.

         SECTION 9.11.  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 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 Collection Account, Spread Account and Payahead
Account.  The Indenture  Trustee  shall  release  property from the lien of this
Indenture  pursuant  to this  Section  9.11(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 13.01.

         SECTION 9.12.  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 9.10(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 X

                               CREDIT ENHANCEMENT

         SECTION  10.01.  Subordination.

         (a) The payment of Monthly  Principal to Class C  Noteholders  shall be
subordinated  to the  payment  of  Class A  Monthly  Interest,  Class B  Monthly
Interest, Class A Monthly Principal and Class B Monthly Principal on any Payment
Date, and the payment of Class C Monthly  Interest shall be  subordinated to the
payment of Class A Monthly Interest, Class A Monthly Principal,  Class B Monthly
Interest and Class B Monthly  Principal (i) to the extent of principal owed on a
Final  Maturity  Date of a Class of  Class A Notes or the  Class B Notes or (ii)
after the Notes shall have been  declared to be due and  payable  under  Section
5.02 following an Event of Default.

         (b) The payment of 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, and the payment of Class B Monthly Interest shall
be subordinated  to the payment of Class A Monthly  Interest and Class A Monthly
Principal  (i) to the extent of  principal  owed on a Final  Maturity  Date of a
Class of Class A Notes or (ii) after the Notes  shall have been  declared  to be
due and payable under Section 5.02 following an Event of Default.

         SECTION 10.02.  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 the  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.  On the Closing Date, UAC  Securitization
Corporation  shall deposit the Initial Spread Account Amount and the Pre-Funding
Reserve Deposit Amount in the Spread Account.

         (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 9.01,  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 Account Facility")
and  Standard & Poor's  and  Moody's  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) (i ) If on any Payment  Date  (other  than a Payment  Date after an
Event of Default shall have occurred and be continuing)  the amount of Available
Funds is insufficient to make the distributions  required by Sections 9.04(a)(i)
through (x), the Indenture  Trustee shall withdraw or cause to be withdrawn from
the Spread Account and deposited in the Collection Account the lesser of (x) the
entire  Available  Spread  Amount and (y) the amount  necessary  to make up such
deficiency to pay any deficiency,  as provided in Sections 9.02 and 9.04 and the
Policy.

             (ii)  Alternatively,  if  on  any  Payment  Date  after an Event of
Default the amount of Available Funds is insufficient to make the  distributions
required by Sections  5.06(a)(i)  through (ix), but excluding any  distributions
required by Section  5.06(a)(ii),  the Indenture Trustee shall withdraw or cause
to be withdrawn from the Spread Account and deposited in the Collection  Account
the  lesser  of (x) the  entire  Available  Spread  Amount  and  (y) the  amount
necessary to make up such deficiency,  as provided in Sections 5.06 and 9.02 and
the Policy.

         (d) On each Payment Date, all  distributions  made pursuant to Sections
9.04(a)(xiii)  and (xv) or  5.06(a)(xi)  and  (xiii),  as  applicable,  shall be
deposited into the Spread Account.

         (e) If the amount on deposit in the Spread Account, after giving effect
to the distributions set forth in Section 9.04 (including,  without  limitation,
payment of amounts due and owing to the  Insurer) is greater  than the  Required
Spread  Amount on such Payment  Date,  such excess shall first be applied to pay
any current and past due Insurance  Premiums or any amounts owing to the Insurer
pursuant   to   the   Insurance   Agreement   including,   without   limitation,
reimbursement,  indemnities,  fees and expenses,  plus accrued interest thereon,
and after  payment of such  amounts to the  Insurer,  any amounts  remaining  on
deposit in the Spread Account shall be  distributed by the Indenture  Trustee to
the Owner Trustee, or as the Owner Trustee shall direct in writing in accordance
with the Trust Agreement to the Certificateholder.  Amounts properly distributed
to the Owner  Trustee or  Certificateholder  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) The  Servicer is permitted  to purchase  the  Receivables  from the
Issuer when the Note  Balances  have been  reduced to 10% or less of the Initial
Note Balances  pursuant to Section 16.02 of the Trust Agreement.  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 Certificateholder,  and such amounts shall not be subject
to any claims or rights of any Noteholder.

         SECTION 10.03.  Policy.

         (a) The  Insurer is  required  under the terms of the Policy to pay the
Monthly  Servicing Fee, Class A Monthly  Interest,  Class B Monthly Interest and
Insured Monthly Principal 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) not covered by amounts withdrawn from the Spread
Account,  as determined  pursuant to Section 9.02, to the Indenture  Trustee for
credit to the  Collection  Account on the later of (a) 12:00 noon, New York City
time,  on the  Payment  Date and (b)  12:00  noon,  New York City  time,  on the
Business  Day  immediately  succeeding  presentation  to the Fiscal Agent of the
Indenture Trustee's demand therefor.  Any demand for payment pursuant to Section
9.02 to the Fiscal  Agent  received by the Fiscal  Agent 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 Fiscal Agent at 9:00 a.m.,  New York City time,  on
the next Business Day.  Notwithstanding the foregoing, on a Redemption Date, the
obligations of the Insurer under the Policy shall be limited in accordance  with
Section  9.04(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  Class  A
Noteholders  or the Class B  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 Class A Notes and the
Class B Notes pursuant to Section 9.04 hereof.

         (b) The Insurer shall pay any Preference Amounts,  but only after there
shall have been  delivered to the Insurer (x) a certified  copy of a final order
of the court exercising  jurisdiction in the Insolvency Proceeding to the effect
that the  Indenture  Trustee is required  to return any such  payment or portion
thereof prior to the  Termination  Date (as defined in the Policy) of the Policy
because  such  payment was voided under  applicable  law,  with respect to which
order the appeal  period has  expired  without an appeal  having been filed (the
"Final  Order"),  (y) an  assignment,  in the form of  Exhibit D to the  Policy,
irrevocably  assigning  to the Insurer  all rights and claims of such  Indenture
Trustee  relating to or arising under such Avoided  Payment and (z) a Notice for
Payment  in the form of  Exhibit A to the  Policy  appropriately  completed  and
executed by the  Indenture  Trustee.  Such  payment  shall be  disbursed  to the
receiver,  conservator,  debtor-in-possession  or trustee in bankruptcy named in
the Final Order and not to the Indenture Trustee directly.

         The  Indenture  Trustee,  for itself and on behalf of the  Noteholders,
agrees  that  the  Insurer  may at  any  time  during  the  continuation  of any
proceeding  relating to a Final Order direct all matters  relating to such Final
Order, including,  without limitation,  the direction of any appeal of any order
relating  to such Final  Order and the  posting of any  surety,  supersedeas  or
performance bond pending any such appeal. In addition and without  limitation of
the foregoing,  the Insurer shall be  subrogated,  to the extent of amounts paid
under the Policy,  to the rights of UAC, the Servicer,  the Seller,  the Issuer,
the  Indenture  Trustee and the  Noteholders  in the  conduct of any  preference
claim, including, without limitation, all rights of any party to any adversarial
proceeding or action with respect to any court order issued in  connection  with
any such preference claim.

         SECTION 10.04. Class C Reserve 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 "Class C Reserve  Account." The
Class C  Reserve  Account  shall  be  maintained  in the  name of the  Indenture
Trustee. The Class C Reserve Account and any amounts on deposit therein shall be
part  of the  Pledged  Assets  but  shall  be for  the  benefit  of the  Class C
Noteholders only. The interests of the Insurer,  the Class A Noteholders and the
Class B Noteholders  therein shall be subordinated to the interests of the Class
C Noteholders as provided herein.

         (b) Funds on deposit in the Class C Reserve  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 9.01,  including the  limitation  that Eligible  Investments  mature not
later than the Business Day prior to the next succeeding Payment Date.

         (c) If the Available  Funds for a Payment Date are  insufficient to pay
to the Class C Noteholders the amounts required pursuant to Sections  9.04(a)(v)
and (x) or Sections 5.06(a)(viii) and (ix), as applicable, the Indenture Trustee
shall withdraw funds from the Class C Reserve  Account and deposit such funds in
the Collection Account as provided in Section 9.02 to cover such deficiency.

         (d) On each Payment Date,  all  distributions  made pursuant to Section
9.04(a)(xiv) or 5.06(a)(xii), as applicable, shall be deposited into the Class C
Reserve Account.

                                   ARTICLE XI

                            SUPPLEMENTAL INDENTURES

         SECTION 11.01.  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 no Insurer Default shall have occurred and be
continuing  and the  Policy  shall be in effect,  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 a successor trustee with respect to the Notes
         and to add to or change  any of the  provisions  of this  Indenture  as
         shall be  necessary  to  facilitate  the  administration  of the trusts
         hereunder by more than one  trustee,  pursuant to the  requirements  of
         Article Six; 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 he expressly required by the TIA.

         The  Indenture  Trustee  shall  join  in  the  execution  of  any  such
supplemental  indenture  and to make  any  further  appropriate  agreements  and
stipulations that may be therein contained.

         (b) The Issuer and the Indenture Trustee,  when authorized by an Issuer
Order,  may,  also (i) without the consent of any of the  Noteholders,  but (ii)
with the consent of the Insurer,  so long as an Insurer  Default  shall not have
occurred and be  continuing  and the Policy  shall be in effect,  and (iii) 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 11.02.  Supplemental Indentures With Consent of Noteholders.

         (a) Except as  provided  in  Paragraph  (e)  below,  the Issuer and the
Indenture  Trustee,  when authorized by an Issuer Order, also may (i) with prior
notice to each Rating Agency,  (ii) with the consent of the Insurer,  so long as
an Insurer  Default  shall not have  occurred and be  continuing  and the Policy
shall be in  effect,  (iii) with the  consent of the  Holders of not less than a
majority of the Outstanding Note Balances,  by Act of such Holders  delivered to
the Issuer and the Indenture  Trustee,  and (iv) with the consent of the Holders
of not less than a  majority  of the  Outstanding  Note  Balance  of the Class C
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 Five, 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; or

                  (vii) permit the creation of any lien ranking prior to or on a
         parity with the lien created by this Indenture with respect to any part
         of the 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.

         (e) So long as an  Insurer  Default  shall  not  have  occurred  and be
continuing  and the  Policy  shall be in effect,  the  Issuer and the  Indenture
Trustee,  when  authorized by an Issuer Order,  also may (i) with the consent of
the Insurer  (ii) with the consent of the Holders of not less than a majority of
the  Outstanding  Note  Balance  of the  Class C Notes,  by Act of such  Holders
delivered to the Issuer and the Indenture  Trustee,  and (iii) with prior notice
to the Rating  Agency then rating the Class C Notes,  enter into an indenture or
indentures  supplemental  thereto  for  the  purpose  of  modifying  any  of the
definitions of the following  terms in Article I hereto:  "Required Cash Floor,"
"Required  Spread Amount,"  "Excess Yield  Requirements" or "Net Cumulative Loss
Event."

         SECTION 11.03. 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.

<PAGE>

         SECTION 11.04. Effect of Supplemental Indenture.  Upon the execution of
any supplemental  indenture  pursuant to the provisions  hereof,  this Indenture
shall be and shall be deemed to be modified and amended in accordance  therewith
with  respect  to  the  Notes  affected  thereby,  and  the  respective  rights,
limitations of rights,  obligations,  duties,  liabilities and immunities  under
this Indenture of the 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 11.05.  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
Indenture Act.

         SECTION 11.06.  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 XIIREDEMPTION OF NOTES

         SECTION 12.01. Redemption. In the event that the Servicer exercises its
right to  require  disposition  of the corpus of the Trust  pursuant  to Section
16.02 of the Trust Agreement,  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 (so long as an Insurer  Default shall not have
occurred and be continuing  and the Policy shall be in effect),  and each Rating
Agency notice of such  redemption.  If the Notes are to be redeemed  pursuant to
this Section  12.01,  the Servicer or the Issuer  shall  furnish  notice of such
election  to the  Indenture  Trustee  not later  than ten (10) 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 12.02 to each Holder of the Notes.

         SECTION 12.02.  Form of Redemption  Notice.  Notice of redemption under
Section  12.01  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 the  Rating  Agencies  upon the  redemption  of any Class of Notes,
pursuant to Section 2.07(b) of this Indenture.

         All notices of redemption shall state:

                  (i)   the Redemption Date;

                  (ii)  the Redemption Price;

                  (iii) CUSIP numbers; and

                  (iv)  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.

                  SECTION 12.03.  Notes Payable on Redemption Date. The Notes or
portions  thereof to be redeemed shall,  following notice of redemption (if any)
as required by Section 12.02,  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 XIII

                                 MISCELLANEOUS

         SECTION 13.01.  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  13.01(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
         (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,  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.

                  (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 13.02.  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, 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 Seller or the  Issuer,  stating  that the  information  with
respect to such factual matters is in the possession of the Servicer, the Seller
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 13.03.  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 3.16(c) of the TIA.

         (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 13.04. 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,
         it 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,
         it 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: UACSC 2001-A,
         in care of First Union Trust Company,  National  Association,  as Owner
         Trustee, One Rodney Square, 920 King Street,  First Floor,  Wilmington,
         Delaware 19801,  Attention:  Corporate Trust Administration,  facsimile
         (302)  888-7544  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,  it
         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:  MBIA  Insurance
         Corporation,  113  King  Street,  Armonk,  New York  10504,  Attention:
         Insured  Portfolio  Management,  Structured  Finance,  facsimile  (914)
         765-3810.

         (b)  Any  notices  delivered  to the  Issuer  hereunder  shall  also be
delivered  (by the same means) to the Servicer and the  Administrator  c/o Union
Acceptance Corporation, 250 North Shadeland Avenue, Indianapolis, Indiana 46219,
Attention: Melanie S. Otto, facsimile (317) 231-7926.

         (c) Any  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 Moody's,  at the  following  address:
Moody's Investors Service,  Inc., ABS Monitoring  Department,  99 Church Street,
New York,  New York  10007  and (ii) in the case of  Standard  & Poor's,  at the
following  address:  Standard  & Poor's  Ratings  Services,  a  division  of the
McGraw-Hill  Companies,  Inc., 55 Water Street (40th Floor),  New York, New York
10041-0003,  Attention: Structured Finance/Asset Backed Surveillance Department;
or as to each of the foregoing,  at such other address as shall be designated by
written notice to the other parties.

         SECTION 13.05.  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  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 13.06. 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 13.07.  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  13.08.  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 13.09.  Successors and Assigns. All covenants and agreements in
this  Indenture  and the  Notes by the  Issuer  shall  bind its  successors  and
assigns, whether so expressed or not. All agreements of the Indenture Trustee in
this Indenture shall bind its successors, co-trustees and agents.

         SECTION 13.10. 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  13.11.  Benefits of Indenture.  The Insurer and its successors
and  assigns  shall  be  third-party  beneficiaries  to the  provisions  of this
Indenture,  and  shall be  entitled  to rely  upon  and  directly  enforce  such
provisions of this  Indenture so long as no Insurer  Default shall have occurred
and be continuing and the Policy shall be in effect.  The Owner Trustee shall be
a third-party  beneficiary  to the  provisions of this Indenture with respect to
fees,  expenses and indemnity  upon and following the  occurrence of an Event of
Default.  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 13.12. 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  13.13.  Governing  Law. This  Indenture  shall be construed in
accordance  with  the laws of the  State  of New  York,  without  regard  to the
conflict of laws principles thereof,  and the obligations,  rights, and remedies
of the parties under this Indenture  shall be determined in accordance with such
laws.

         SECTION 13.14. 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 13.15. 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.
<PAGE>

         SECTION 13.16. 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,  or of any holder of a
beneficial  interest  in  the  Issuer,  or of any  successor  or  assign  of the
Indenture Trustee or the Owner Trustee in its individual capacity, except as any
such Person may have expressly  agreed (it being  understood  that the Indenture
Trustee  and the Owner  Trustee  have no such  obligations  in their  individual
capacities)  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 13.17. 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 Seller 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 13.18. Inspection.  The Issuer agrees that, on reasonable prior
notice,  it will permit any  representative  of the Indenture  Trustee or of the
Insurer,  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   13.19.    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 Seven, Eight, Ten, Twelve, Thirteen, Fourteen and Fifteen
of the Trust Agreement.

         SECTION 13.20.  Certain  Matters  Regarding the Insurer.  So long as an
Insurer  Default shall not have occurred and be continuing  and the Policy shall
be in effect, the Insurer shall have the right to exercise all rights, 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  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,  or (iii)  alter the  rights of any such
Holder to consent to such amendment.

         Notwithstanding any provision in this Indenture to the contrary, in the
event an Insurer  Default  shall have  occurred and be  continuing or the Policy
shall have terminated in accordance  with its terms,  the Insurer shall not have
the right to take any action  under this  Indenture  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 Trustee or the
Noteholders or the Certificateholders; provided, that the consent of the Insurer
shall be required at all times with respect to any amendment of this Indenture.

                          [next page is signature page]
<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.

                                    UACSC 2001-A OWNER TRUST

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

                                    By:/s/ Edward L. Truitt, Jr.
                                       -----------------------------------------
                                           Name:    Edward L. Truitt, Jr.
                                           Title:     Vice President

                                   BNY MIDWEST TRUST COMPANY,
                                    not in its individual capacity but solely
                                    as Indenture Trustee

                                    By:/s/ Cynthia Davis
                                       -----------------------------------------
                                           Name:    Cynthia Davis
                                           Title:   Assistant Vice President

                       [SCHEDULES AND EXHIBITS OMITTED]

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