Document:

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                                                                   EXHIBIT 4.4

                  RECEIVABLES PURCHASE AGREEMENT AND ASSIGNMENT

                                     between

                        ARCADIA RECEIVABLES FINANCE CORP.
                                    Purchaser

                                       and

                             ARCADIA FINANCIAL LTD.
                                     Seller

                                   dated as of

                                September 1, 1999

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                                TABLE OF CONTENTS

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ARTICLE I
         DEFINITIONS..............................................................................................1
         SECTION 1.1.  GENERAL....................................................................................1
         SECTION 1.2.  SPECIFIC TERMS.............................................................................2
         SECTION 1.3.  USAGE OF TERMS.............................................................................4
         SECTION 1.4.  CERTAIN REFERENCES.........................................................................4
         SECTION 1.5.  NO RECOURSE................................................................................5
         SECTION 1.6.  ACTION BY OR CONSENT OF NOTEHOLDERS........................................................5
         SECTION 1.7.  MATERIAL ADVERSE EFFECT....................................................................5

ARTICLE II
         CONVEYANCE OF THE INITIAL RECEIVABLES
         AND THE INITIAL OTHER CONVEYED PROPERTY..................................................................5
         SECTION 2.1.  CONVEYANCE OF THE INITIAL RECEIVABLES AND THE INITIAL OTHER CONVEYED
                  PROPERTY........................................................................................5
         SECTION 2.2.  PURCHASE PRICE OF INITIAL RECEIVABLES......................................................6
         SECTION 2.3.  CONVEYANCE OF SUBSEQUENT RECEIVABLES AND SUBSEQUENT OTHER CONVEYED
                  PROPERTY........................................................................................6

ARTICLE III
         REPRESENTATIONS AND WARRANTIES...........................................................................8
         SECTION 3.1.  REPRESENTATIONS AND WARRANTIES OF AFL......................................................8
         SECTION 3.2.  REPRESENTATIONS AND WARRANTIES OF ARFC....................................................10

ARTICLE IV
         COVENANTS OF AFL........................................................................................12
         SECTION 4.1.  PROTECTION OF TITLE OF ARFC AND THE TRUST.................................................12
         SECTION 4.2.  OTHER LIENS OR INTERESTS..................................................................13
         SECTION 4.3.  COSTS AND EXPENSES........................................................................13
         SECTION 4.4.  INDEMNIFICATION...........................................................................14

ARTICLE V
         REPURCHASES   ..........................................................................................16
         SECTION 5.1.  REPURCHASE OF RECEIVABLES UPON BREACH OF WARRANTY.........................................16
         SECTION 5.2.  REASSIGNMENT OF PURCHASED RECEIVABLES.....................................................16
         SECTION 5.3.  WAIVERS...................................................................................17

ARTICLE VI
         MISCELLANEOUS ..........................................................................................17
         SECTION 6.1.  LIABILITY OF AFL..........................................................................17
         SECTION 6.2.  FAILURE OF AFL TO SELL SUBSEQUENT RECEIVABLES.............................................17
         SECTION 6.3.  MERGER OR CONSOLIDATION OF AFL OR ARFC....................................................17
         SECTION 6.4.  LIMITATION ON LIABILITY OF AFL AND OTHERS.................................................18
         SECTION 6.5.  AFL MAY OWN NOTES.........................................................................18
         SECTION 6.6.  AMENDMENT.................................................................................18

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         SECTION  6.7.  NOTICES...................................................................................19
         SECTION  6.8.  MERGER AND INTEGRATION....................................................................20
         SECTION  6.9.  SEVERABILITY OF PROVISIONS................................................................20
         SECTION 6.10.  INTENTION OF THE PARTIES.................................................................20
         SECTION 6.11.  GOVERNING LAW............................................................................20
         SECTION 6.12.  COUNTERPARTS.............................................................................20
         SECTION 6.13.  CONVEYANCE OF THE INITIAL RECEIVABLES AND THE INITIAL OTHER CONVEYED
                  PROPERTY TO THE TRUST..........................................................................21
         SECTION 6.14.  NONPETITION COVENANT.....................................................................21

                                                     SCHEDULES

Schedule A               --          Schedule of Initial Receivables

Schedule B               --          Representations and Warranties of AFL
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                  RECEIVABLES PURCHASE AGREEMENT AND ASSIGNMENT

                  THIS RECEIVABLES PURCHASE AGREEMENT AND ASSIGNMENT, dated as
of September 1, 1999, executed between Arcadia Receivables Finance Corp., a
Delaware corporation, as purchaser ("ARFC"), and Arcadia Financial Ltd., a
Minnesota corporation, as seller ("AFL").

                              W I T N E S S E T H:

                  WHEREAS, ARFC has agreed to purchase from AFL and AFL,
pursuant to one or more assignment, transfer, purchase, repurchase or
reconveyance agreements by and among AFL or its affiliates, ARFC and certain
providers of warehouse financing for AFL (the "Warehouse Purchase Agreements"),
has transferred to ARFC certain of the Initial Receivables and Initial Other
Conveyed Property;

                  WHEREAS, ARFC has agreed to purchase from AFL and AFL,
pursuant to this Agreement, is transferring to ARFC the remainder of the Initial
Receivables and Initial Other Conveyed Property; and

                  WHEREAS, ARFC has agreed to purchase (or has purchased) from
AFL and AFL has agreed to transfer (or has transferred) to ARFC the Subsequent
Receivables and Subsequent Other Conveyed Property in an amount set forth
herein.

                  NOW, THEREFORE, in consideration of the premises and the
mutual agreements hereinafter contained, and for other good and valuable
consideration, the receipt of which is acknowledged, ARFC and AFL, intending to
be legally bound, hereby agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

                  SECTION 1.1. GENERAL. The specific terms defined in this
Article include the plural as well as the singular. The words "herein," "hereof"
and "hereunder" and other words of similar import refer to this Agreement as a
whole and not to any particular Article, Section or other subdivision, and
Article, Section, Schedule and Exhibit references, unless otherwise specified,
refer to Articles and Sections of and Schedules and Exhibits to this Agreement.
Capitalized terms used herein without definition shall have the respective
meanings assigned to such terms in the Sale and Servicing Agreement, dated as of
September 1, 1999, by and among Arcadia Receivables Finance Corp. (as Seller),
Arcadia Financial Ltd. (in its individual capacity and as Servicer), Arcadia
Automobile Receivables Trust, 1999-C (as Issuer) (the "Trust") and Norwest Bank
Minnesota, National Association, a national banking association (as Backup
Servicer).

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                  SECTION 1.2. SPECIFIC TERMS. Whenever used in this Agreement,
the following words and phrases, unless the context otherwise requires, shall
have the following meanings:

                  "AGREEMENT" shall mean this Receivables Purchase Agreement and
Assignment and all amendments hereof and supplements hereto.

                  "CLOSING DATE" means September 22, 1999.

                  "INDENTURE TRUSTEE" means Norwest Bank Minnesota, National
Association, a national banking association, as trustee and indenture collateral
agent under the Indenture, dated as of September 1, 1999, between the Trust, the
Indenture Trustee and the Indenture Collateral Agent.

                  "INITIAL OTHER CONVEYED PROPERTY" means all monies at any time
paid or payable on the Initial Receivables or in respect thereof after the
Initial Cutoff Date (including amounts due on or before the Initial Cutoff Date
but received by AFL after the Initial Cutoff Date), an assignment of security
interests in the Financed Vehicles, the Collection Account (including all
Eligible Investments therein and all proceeds therefrom), the Subcollection
Account, the Insurance Policies and any proceeds from any Insurance Policies
relating to the Initial Receivables, the Obligors or the related Financed
Vehicles, including rebates of premiums, rights under any Collateral Insurance
and any Force-Placed Insurance relating to the Initial Receivables, an
assignment of the rights of AFL against Dealers with respect to the Initial
Receivables under the Dealer Agreements and the Dealer Assignments, all items
contained in the Receivable Files relating to the Initial Receivables, any and
all other documents or electronic records that AFL keeps on file in accordance
with its customary procedures relating to the Initial Receivables, the Obligors
or the related Financed Vehicles, property (including the right to receive
future Liquidation Proceeds) that secures an Initial Receivable and that has
been acquired by or on behalf of the Trust pursuant to liquidation of such
Initial Receivable, and all proceeds of the foregoing.

                  "INITIAL RECEIVABLES" means the Receivables listed on the
Schedule of Initial Receivables attached hereto as Schedule A.

                  "INITIAL SPREAD ACCOUNT DEPOSIT" means $19,733,581.72.

                  "INSURANCE AGREEMENT" means the Insurance and Indemnity
Agreement, dated as of September 22, 1999, among the Security Insurer, the
Trust, ARFC and AFL.

                  "LIQUIDATED DAMAGES" means an amount equal to the sum of the
Class A-1 Prepayment Premium, the Class A-2 Prepayment Premium and the the Class
A-3 Prepayment Premium.

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                  "OTHER CONVEYED PROPERTY" means the Initial Other Conveyed
Property conveyed by AFL to ARFC pursuant to this Agreement together with any
and all Subsequent Other Conveyed Property conveyed by AFL to ARFC pursuant to
each Subsequent Purchase Agreement.

                  "OWNER TRUSTEE" means Wilmington Trust Company, a Delaware
corporation, not in its individual capacity but solely as trustee of the Trust,
and any successor trustee appointed and acting pursuant to the Trust Agreement.

                  "RELATED DOCUMENTS" means the Notes, the Custodian Agreement,
the Trust Agreement, the Administration Agreement, the Indenture, each
Subsequent Purchase Agreement, the Sale and Servicing Agreement, each Subsequent
Transfer Agreement, the Note Policy, the Spread Account Agreement, the Insurance
Agreement, the Lockbox Agreement and the Underwriting Agreement among AFL, ARFC
and the underwriters of the Notes. The Related Documents to be executed by any
party are referred to herein as "such party's Related Documents," "its Related
Documents" or by a similar expression.

                  "REPURCHASE EVENT" means the occurrence of a breach of any of
AFL's representations and warranties hereunder or under any Subsequent Purchase
Agreement or any other event which requires the repurchase of a Receivable by
AFL under the Sale and Servicing Agreement.

                  "SALE AND SERVICING AGREEMENT" means the Sale and Servicing
Agreement, dated as of September 1, 1999, executed and delivered by Arcadia
Receivables Finance Corp., as Seller, Arcadia Financial Ltd., in its individual
capacity and as Servicer, Arcadia Automobile Receivables Trust, 1999-C, as
Issuer, and Norwest Bank Minnesota, National Association, as Backup Servicer.

                  "SCHEDULE OF INITIAL RECEIVABLES" means the schedule of all
retail installment sales contracts and promissory notes sold and transferred
pursuant to this Agreement which is attached hereto as Schedule A.

                  "SCHEDULE OF RECEIVABLES" means the Schedule of Initial
Receivables attached hereto as Schedule A as supplemented by each Schedule of
Subsequent Receivables attached to each Subsequent Purchase Agreement as
Schedule A.

                  "SCHEDULE OF REPRESENTATIONS" means the Representations and
Warranties of AFL attached hereto as Schedule B.

                  "SCHEDULE OF SUBSEQUENT RECEIVABLES" means the schedule of all
retail installment sales contracts and promissory notes sold and transferred
pursuant to a Subsequent Purchase Agreement which is attached to such Subsequent
Purchase Agreement as Schedule A, which Schedule of Subsequent Receivables shall
supplement the Schedule of Initial Receivables.

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                  "SPREAD ACCOUNT" means the Spread Account established and
maintained pursuant to the Spread Account Agreement. The Spread Account shall in
no event be deemed to be part of the Trust Property.

                  "SPREAD ACCOUNT AGREEMENT" means the Spread Account Agreement,
dated as of March 25, 1993, as thereafter amended and restated, among AFL, ARFC,
the Security Insurer, the Collateral Agent and the trustees specified therein,
as the same may be amended, supplemented or otherwise modified in accordance
with the terms thereof.

                  "SUBSEQUENT OTHER CONVEYED PROPERTY" means the Subsequent
Other Conveyed Property conveyed by AFL to ARFC pursuant to each Subsequent
Purchase Agreement.

                  "SUBSEQUENT RECEIVABLES" means the Receivables specified in
the Schedule of Subsequent Receivables attached as Schedule A to each Subsequent
Purchase Agreement.

                  "TRUST" means the trust created by the Trust Agreement, the
estate of which consists of the Trust Property.

                  "TRUST PROPERTY" means the property and proceeds of every
description conveyed pursuant to Section 2.5 of the Trust Agreement, Sections
2.1 and 2.4 of the Sale and Servicing Agreement and Section 2.1 hereof and
pursuant to any Subsequent Purchase Agreement and Subsequent Transfer Agreement,
together with the Trust Accounts (including all Eligible Investments therein and
all proceeds therefrom). Although ARFC has pledged the Spread Account to the
Collateral Agent pursuant to the Spread Account Agreement, the Spread Account
shall not under any circumstances be deemed to be a part of or otherwise
includable in the Trust or the Trust Property.

                  SECTION 1.3. USAGE OF TERMS. With respect to all terms used in
this Agreement, the singular includes the plural and the plural the singular;
words importing any gender include the other gender; 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 or the Sale and
Servicing Agreement; references to Persons include their permitted successors
and assigns; and the terms "include" or "including" mean "include without
limitation" or "including without limitation."

                  SECTION 1.4. CERTAIN REFERENCES. All references to the
Principal Balance of a Receivable as of an Accounting Date shall refer to the
close of business on such day, or as of the first day of a Monthly Period shall
refer to the opening of business on such day. All references to the last day of
a Monthly Period shall refer to the close of business on such day.

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                  SECTION 1.5. NO RECOURSE. Without limiting the obligations of
AFL hereunder, no recourse may be taken, directly or indirectly, under this
Agreement or any certificate or other writing delivered in connection herewith
or therewith, against any stockholder, officer or director, as such, of AFL, or
of any predecessor or successor of AFL.

                  SECTION 1.6. ACTION BY OR CONSENT OF NOTEHOLDERS. Whenever any
provision of this Agreement refers to action to be taken, or consented to, by
Noteholders, such provision shall be deemed to refer to Noteholders of record as
of the Record Date immediately preceding the date on which such action is to be
taken, or consent given, by Noteholders. Solely for the purposes of any action
to be taken, or consented to, by Noteholders, any Note registered in the name of
the Seller, AFL or any Affiliate thereof shall be deemed not to be outstanding,
and the related Outstanding Amount, evidenced thereby shall not be taken into
account in determining whether the requisite Outstanding Amount necessary to
effect any such action or consent has been obtained; PROVIDED, HOWEVER, that,
solely for the purpose of determining whether the Indenture Trustee is entitled
to rely upon any such action or consent, only Notes which the Indenture Trustee
knows to be so owned shall be so disregarded.

                  SECTION 1.7. MATERIAL ADVERSE EFFECT. Whenever a determination
is to be made under this Agreement as to whether a given event, action, course
of conduct or set of facts or circumstances could or would have a material
adverse effect on the Trust or the Noteholders (or any similar or analogous
determination), such determination shall be made without taking into account the
funds available from claims under the Note Policy.

                                   ARTICLE II
                      CONVEYANCE OF THE INITIAL RECEIVABLES
                     AND THE INITIAL OTHER CONVEYED PROPERTY

                  SECTION 2.1. CONVEYANCE OF THE INITIAL RECEIVABLES AND THE
INITIAL OTHER CONVEYED PROPERTY. Subject to the terms and conditions of this
Agreement, AFL hereby sells, transfers, assigns, and otherwise conveys to ARFC
without recourse (but without limitation of its obligations in this Agreement),
and ARFC hereby purchases, all right, title and interest of AFL in and to the
Initial Receivables and the Initial Other Conveyed Property. AFL and ARFC
acknowledge that certain of the Initial Receivables and Initial Other Conveyed
Property have previously been sold, transferred, assigned and conveyed to ARFC
pursuant to the Telluride Purchase Agreement, and AFL hereby confirms such prior
sale, transfer, assignment and conveyance. It is the intention of AFL and ARFC
that the transfer and assignment contemplated by this Agreement shall constitute
a sale of the Initial Receivables and the Initial Other Conveyed Property from
AFL to ARFC, conveying good title thereto free and clear of any Liens, and the
Initial Receivables and the Initial Other Conveyed Property shall not be part of
AFL's estate in the event of the filing of a bankruptcy petition by or against
AFL under any bankruptcy or similar law.

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                  SECTION 2.2. PURCHASE PRICE OF INITIAL RECEIVABLES.
Simultaneously with the conveyance of the Initial Receivables and the Initial
Other Conveyed Property to ARFC, ARFC has paid or caused to be paid to or upon
the order of AFL approximately $436,219,838.52 by wire transfer of immediately
available funds (representing the proceeds to ARFC from the sale of the Initial
Receivables after (i) deducting expenses of $725,000 incurred by ARFC in
connection with such sale, (ii) depositing the Pre-Funded Amount in the
Pre-Funding Account and (iii) depositing the Reserve Amount in the Reserve
Account).

                  SECTION 2.3. CONVEYANCE OF SUBSEQUENT RECEIVABLES AND
SUBSEQUENT OTHER CONVEYED PROPERTY.

                  (a)      Subject to the conditions set forth in paragraph (b)
below and the terms and conditions in the related Subsequent Purchase Agreement,
in consideration of AFL's delivery on the related Subsequent Transfer Date to or
upon the order of ARFC of an amount equal to the purchase price of the
Subsequent Receivables (as set forth in the related Subsequent Purchase
Agreement), AFL hereby agrees to sell, transfer, assign, and otherwise convey to
ARFC without recourse (but without limitation of its obligations in this
Agreement and the related Subsequent Purchase Agreement), and ARFC hereby agrees
to purchase all right, title and interest of AFL in and to the Subsequent
Receivables and the Subsequent Other Conveyed Property described in the related
Subsequent Purchase Agreement.

                  (b)      AFL shall transfer to ARFC, and ARFC shall acquire,
the Subsequent Receivables and the Subsequent Other Conveyed Property to be
transferred on any Subsequent Transfer Date only upon the satisfaction of each
of the following conditions on or prior to such Subsequent Transfer Date:

                           (i)      ARFC shall have provided the Owner Trustee,
         the Indenture Trustee, the Security Insurer and the Rating Agencies
         with a timely Addition Notice and shall have provided any information
         reasonably requested by any of the foregoing with respect to the
         Subsequent Receivables;

                           (ii)     the Funding Period shall not have
         terminated;

                           (iii)    the Security Insurer (so long as an Insurer
         Default shall not have occurred and be continuing) shall in its sole
         and absolute discretion have given its prior written approval of the
         transfer of the Subsequent Receivables and the Subsequent Other
         Conveyed Property by AFL to ARFC and, in turn, by ARFC to the Trust;

                           (iv)     ARFC shall have delivered to AFL a duly
         executed Subsequent Receivables Purchase Agreement and Assignment, in
         substantially the form of Exhibit A hereto (the "Subsequent Purchase
         Agreement"), which shall include a Schedule of Subsequent Receivables;

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                           (v)      as of each Subsequent Transfer Date, neither
         AFL nor ARFC was insolvent nor will either of them have been made
         insolvent by such transfer nor is either of them aware of any pending
         insolvency;

                           (vi)     each Rating Agency shall have notified the
         Security Insurer that following such transfer the Notes will be rated
         in the highest rating category by such Rating Agency;

                           (vii)    such addition will not result in a material
         adverse tax consequence to the Trust or the Noteholders as evidenced by
         an Opinion of Counsel to be delivered by AFL;

                           (viii)   ARFC shall have delivered to the Rating
         Agencies and to the Security Insurer one or more Opinions of Counsel
         with respect to the transfer of the Subsequent Receivables
         substantially in the form of the Opinions of Counsel delivered to such
         persons on the Closing Date;

                           (ix)     (A) the Receivables in the Trust, including
         the Subsequent Receivables to be conveyed by AFL to ARFC and, in turn,
         by ARFC to the Trust on the Subsequent Transfer Date, shall meet the
         following criteria (based on the characteristics of the Initial
         Receivables on the Initial Cutoff Date and the Subsequent Receivables
         on each related Subsequent Cutoff Date): (1) the weighted average APR
         of such Receivables will not be less than 16.13%, (2) the weighted
         average remaining term of such Receivables will not be more than 68 nor
         less than 60 months, (3) not more than 90% of the Aggregate Principal
         Balance of such Receivables will represent used Financed Vehicles, (4)
         not more than 4.00% of the Aggregate Principal Balance of such
         Receivables will be attributable to Receivables with an Annual
         Percentage Rate in excess of 21.00%, (5) not more than 0.25% of the
         Aggregate Principal Balance of such Receivables will represent loans on
         Financed Vehicles in excess of $50,000.00, (6) not more than 3.00% of
         the Aggregate Principal Balance of such Receivables will represent
         loans with original terms greater than 72 months and (7) not more than
         0.25% of the Aggregate Principal Balance of such Receivables will
         represent loans secured by Financed Vehicles that previously secured a
         loan originated by AFL with an obligor other than the current Obligor,
         and (B) the Trust, the Owner Trustee, the Indenture Trustee and the
         Security Insurer shall have received written confirmation from a firm
         of certified independent public accountants as to the satisfaction of
         such criteria;

                           (x)      AFL shall have taken any action necessary,
         or if requested by the Security Insurer, advisable to maintain the
         first perfected ownership interest of the Trust in the Trust Property
         and the first perfected security interest of ARFC in the Subsequent
         Receivables and the Subsequent Other Conveyed Property, the Trust in
         the Trust Property and the first perfected security interest of the
         Indenture Collateral Agent in the Indenture Collateral;

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                           (xi)     AFL is conveying Subsequent Receivables to
         the Seller in substantially the order they were originated by AFL; and

                           (xii)    no selection procedures believed by AFL to
         be adverse to the interests of the Noteholders shall have been utilized
         in selecting the Subsequent Receivables.

It is the intention of AFL and ARFC that the transfer and assignment
contemplated by this Agreement and the related Subsequent Purchase Agreement
shall constitute a sale of the Subsequent Receivables and the Subsequent Other
Conveyed Property from AFL to ARFC, conveying good title thereto free and clear
of any Liens, and the Subsequent Receivables and the Subsequent Other Conveyed
Property shall not be part of AFL's estate in the event of the filing of a
bankruptcy petition by or against AFL under any bankruptcy or similar law.

                  (c)      AFL covenants to transfer to ARFC pursuant to
paragraph (a) above Subsequent Receivables with an aggregate Principal Balance
approximately equal to $161,475,961.71; PROVIDED, HOWEVER, that the sole remedy
of ARFC with respect to a failure of such covenant shall be to enforce the
provisions of Section 6.2 of this Agreement.

                                   ARTICLE III
                         REPRESENTATIONS AND WARRANTIES

                  SECTION 3.1. REPRESENTATIONS AND WARRANTIES OF AFL. AFL makes
the following representations and warranties, on which ARFC relies in purchasing
the Initial Receivables and the Initial Other Conveyed Property and in
transferring the Initial Receivables and the Initial Other Conveyed Property to
the Trust under the Sale and Servicing Agreement and on which the Security
Insurer will rely in issuing the Note Policy. Such representations are made as
of the execution and delivery of this Agreement, but shall survive the sale,
transfer and assignment of the Initial Receivables and the Initial Other
Conveyed Property hereunder and the sale, transfer and assignment thereof by
ARFC to the Trust under the Sale and Servicing Agreement. AFL and ARFC agree
that ARFC will assign to the Trust all of ARFC's rights under this Agreement and
that the Trust will thereafter be entitled to enforce this Agreement against AFL
in the Trust's own name.

                  (a)      SCHEDULE OF REPRESENTATIONS. The representations and
         warranties set forth on the Schedule of Representations are true and
         correct.

                  (b)      ORGANIZATION AND GOOD STANDING. AFL has been duly
         organized and is validly existing as a corporation in good standing
         under the laws of the State of Minnesota, with power and authority to
         own its properties and to conduct its business as such properties are
         currently owned and such business is currently conducted, and had at

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         all relevant times, and now has, power, authority and legal right to
         acquire, own and sell the Initial Receivables and the Initial Other
         Conveyed Property transferred to ARFC.

                  (c)      DUE QUALIFICATION. AFL 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 its property or the conduct of its business
         requires such qualification.

                  (d)      POWER AND AUTHORITY. AFL has the power and authority
         to execute and deliver this Agreement and its Related Documents and to
         carry out its terms and their terms, respectively; AFL has full power
         and authority to sell and assign the Initial Receivables and the
         Initial Other Conveyed Property to be sold and assigned to and
         deposited with ARFC hereunder and has duly authorized such sale and
         assignment to ARFC by all necessary corporate action; and the
         execution, delivery and performance of this Agreement and AFL's Related
         Documents have been duly authorized by AFL by all necessary corporate
         action.

                  (e)      VALID SALE; BINDING OBLIGATIONS. This Agreement and
         AFL's Related Documents have been duly executed and delivered, shall
         effect a valid sale, transfer and assignment of the Initial Receivables
         and the Initial Other Conveyed Property, enforceable against AFL and
         creditors of and purchasers from AFL; and this Agreement and AFL's
         Related Documents constitute legal, valid and binding obligations of
         AFL enforceable in accordance with their respective terms, except as
         enforceability may be limited by bankruptcy, insolvency, reorganization
         or other similar laws affecting the enforcement of creditors' rights
         generally and by equitable limitations on the availability of specific
         remedies, regardless of whether such enforceability is considered in a
         proceeding in equity or at law.

                  (f)      NO VIOLATION. The consummation of the transactions
         contemplated by this Agreement and the Related Documents and the
         fulfillment of the terms of this Agreement and the Related Documents
         shall not conflict with, result in any breach of any of the terms and
         provisions of or constitute (with or without notice, lapse of time or
         both) a default under, the articles of incorporation or bylaws of AFL,
         or any indenture, agreement, mortgage, deed of trust or other
         instrument to which AFL is a party or by which it is bound, or result
         in the creation or imposition of any Lien upon any of its properties
         pursuant to the terms of any such indenture, agreement, mortgage, deed
         of trust or other instrument, other than this Agreement, the Spread
         Account Agreement and the Sale and Servicing Agreement, or violate any
         law, order, rule or regulation applicable to AFL of any court or of any
         federal or state regulatory body, administrative agency or other
         governmental instrumentality having jurisdiction over AFL or any of its
         properties.

                  (g)      NO PROCEEDINGS. There are no proceedings or
         investigations pending or, to AFL's knowledge, threatened against AFL,
         before any court, regulatory body,

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<PAGE>

         administrative agency or other tribunal or governmental instrumentality
         having jurisdiction over AFL or its properties (i) asserting the
         invalidity of this Agreement or any of the Related Documents, (ii)
         seeking to prevent the issuance of the Notes or the consummation of any
         of the transactions contemplated by this Agreement or any of the
         Related Documents, (iii) seeking any determination or ruling that might
         materially and adversely affect the performance by AFL of its
         obligations under, or the validity or enforceability of, this Agreement
         or any of the Related Documents or (iv) seeking to affect adversely the
         federal income tax or other federal, state or local tax attributes of,
         or seeking to impose any excise, franchise, transfer or similar tax
         upon, the transfer and acquisition of the Initial Receivables and the
         Initial Other Conveyed Property hereunder or under the Sale and
         Servicing Agreement.

                  (h)      CHIEF EXECUTIVE OFFICE. The chief executive office of
         AFL is located at 7825 Washington Avenue South, Minneapolis, MN
         55439-2435.

                  SECTION 3.2. REPRESENTATIONS AND WARRANTIES OF ARFC. ARFC
makes the following representations and warranties, on which AFL relies in
selling, assigning, transferring and conveying the Initial Receivables and the
Initial Other Conveyed Property to ARFC hereunder. Such representations are made
as of the execution and delivery of this Agreement, but shall survive the sale,
transfer and assignment of the Initial Receivables and the Initial Other
Conveyed Property hereunder and the sale, transfer and assignment thereof by
ARFC to the Trust under the Sale and Servicing Agreement.

                  (a)      ORGANIZATION AND GOOD STANDING. ARFC has been duly
         organized and is validly existing and in good standing as a corporation
         under the laws of the State of Delaware, with the power and authority
         to own its properties and to conduct its business as such properties
         are currently owned and such business is currently conducted, and had
         at all relevant times, and has, full power, authority and legal right
         to acquire and own the Initial Receivables and the Initial Other
         Conveyed Property and to transfer the Initial Receivables and the
         Initial Other Conveyed Property to the Trust pursuant to the Sale and
         Servicing Agreement.

                  (b)      DUE QUALIFICATION. ARFC is duly qualified to do
         business as a foreign corporation in good standing, and has obtained
         all necessary licenses and approvals in all jurisdictions where the
         failure to do so would materially and adversely affect (i) ARFC's
         ability to acquire the Initial Receivables or the Initial Other
         Conveyed Property, (ii) the validity or enforceability of the Initial
         Receivables and the Initial Other Conveyed Property or (iii) ARFC's
         ability to perform its obligations hereunder and under the Related
         Documents.

                  (c)      POWER AND AUTHORITY. ARFC has the power, authority
         and legal right to execute and deliver this Agreement and its Related
         Documents and to carry out the terms hereof and thereof and to acquire
         the Initial Receivables and the Initial Other Conveyed

                                     - 10 -
<PAGE>

         Property hereunder; and the execution, delivery and performance of this
         Agreement and its Related Documents and all of the documents required
         pursuant hereto or thereto have been duly authorized by ARFC by all
         necessary action.

                  (d)      NO CONSENT REQUIRED. ARFC is not required to obtain
         the consent of any other Person, or any consent, license, approval or
         authorization or registration or declaration with, any governmental
         authority, bureau or agency in connection with the execution, delivery
         or performance of this Agreement and the Related Documents, except for
         such as have been obtained, effected or made.

                  (e)      BINDING OBLIGATION. This Agreement and each of its
         Related Documents constitutes a legal, valid and binding obligation of
         ARFC, enforceable against ARFC in accordance with its terms, subject,
         as to enforceability, to applicable bankruptcy, insolvency,
         reorganization, conservatorship, receivership, liquidation and other
         similar laws and to general equitable principles.

                  (f)      NO VIOLATION. The execution, delivery and performance
         by ARFC of this Agreement, the consummation of the transactions
         contemplated by this Agreement and the Related Documents and the
         fulfillment of the terms of this Agreement and the Related Documents do
         not and will not conflict with, result in any breach of any of the
         terms and provisions of or constitute (with or without notice or lapse
         of time) a default under the certificate of incorporation or bylaws of
         ARFC, or conflict with or breach any of the terms or provisions of, or
         constitute (with or without notice or lapse of time) a default under,
         any indenture, agreement, mortgage, deed of trust or other instrument
         to which ARFC is a party or by which ARFC is bound or to which any of
         its properties are subject, or result in the creation or imposition of
         any Lien upon any of its properties pursuant to the terms of any such
         indenture, agreement, mortgage, deed of trust or other instrument
         (other than the Sale and Servicing Agreement and the Indenture), or
         violate any law, order, rule or regulation, applicable to ARFC or its
         properties, of any federal or state regulatory body or any court,
         administrative agency, or other governmental instrumentality having
         jurisdiction over ARFC or any of its properties.

                  (g)      NO PROCEEDINGS. There are no proceedings or
         investigations pending, or, to the knowledge of ARFC, threatened
         against ARFC, before any court, regulatory body, administrative agency,
         or other tribunal or governmental instrumentality having jurisdiction
         over ARFC or its properties: (i) asserting the invalidity of this
         Agreement or any of the Related Documents, (ii) seeking to prevent the
         consummation of any of the transactions contemplated by this Agreement
         or any of the Related Documents, (iii) seeking any determination or
         ruling that might materially and adversely affect the performance by
         ARFC of its obligations under, or the validity or enforceability of,
         this Agreement or any of the Related Documents or (iv) that may
         adversely affect the federal or state income tax attributes of, or
         seeking to impose any excise, franchise, transfer or similar tax upon,
         the transfer and acquisition of the Initial Receivables and the Initial

                                     - 11 -
<PAGE>

         Other Conveyed Property hereunder or the transfer of the Initial
         Receivables and the Initial Other Conveyed Property to the Trust
         pursuant to the Sale and Servicing Agreement.

In the event of any breach of a representation and warranty made by ARFC
hereunder, AFL covenants and agrees that it will not take any action to pursue
any remedy that it may have hereunder, in law, in equity or otherwise, until a
year and a day have passed since the later of (i) the date on which all
pass-through certificates or other similar securities issued by the Trust, or a
trust or similar vehicle formed by ARFC, have been paid in full, or (ii) all
Notes or other similar securities issued by the Trust, or a trust or similar
vehicle formed by ARFC, have been paid in full. AFL and ARFC agree that damages
will not be an adequate remedy for such breach and that this covenant may be
specifically enforced by ARFC or by the Owner Trustee on behalf of the Trust.

                                   ARTICLE IV
                                COVENANTS OF AFL

                  SECTION 4.1.  PROTECTION OF TITLE OF ARFC AND THE TRUST.

                  (a)      At or prior to the Closing Date or each Subsequent
Transfer Date, as the case may be, AFL shall have filed or caused to be filed a
UCC-1 financing statement, executed by AFL as seller or debtor, naming ARFC as
purchaser or secured party and describing the Initial Receivables and the
Initial Other Conveyed Property, with respect to this Agreement, and the
Subsequent Receivables and the Subsequent Other Conveyed Property, with respect
to each Subsequent Purchase Agreement, being sold by it to ARFC as collateral,
with the office of the Secretary of State of the State of Minnesota and in such
other locations as ARFC shall have required. From time to time thereafter, AFL
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 ARFC
under this Agreement and each Subsequent Purchase Agreement and of the Trust
under the Sale and Servicing Agreement and each Subsequent Transfer Agreement in
the Initial Receivables and the Initial Other Conveyed Property and the
Subsequent Receivables and the Subsequent Other Conveyed Property, as the case
may be, and in the proceeds thereof. AFL shall deliver (or cause to be
delivered) to ARFC, the Owner Trustee, the Indenture Trustee and the Security
Insurer file- stamped copies of, or filing receipts for, any document filed as
provided above, as soon as available following such filing. In the event that
AFL fails to perform its obligations under this subsection, ARFC or the Owner
Trustee may do so at the expense of AFL.

                  (b)      AFL shall not change its name, identity, or corporate
structure in any manner that would, could or might make any financing statement
or continuation statement filed by AFL (or by ARFC or the Owner Trustee on
behalf of AFL) in accordance with paragraph (a) above seriously misleading
within the meaning of Section 9-402(7) of the UCC, unless it shall have given
ARFC, the Owner Trustee and the Security Insurer at least 60 days' prior written
notice

                                     - 12 -
<PAGE>

thereof, and shall promptly file appropriate amendments to all previously filed
financing statements and continuation statements.

                  (c)      AFL shall give ARFC, the Security Insurer (so long as
an Insurer Default shall not have occurred and be continuing), the Indenture
Trustee and the Owner Trustee at least 60 days' prior written notice of any
relocation of its principal executive office if, as a result of such relocation,
the applicable provisions of the UCC would require the filing of any amendment
of any previously filed financing or continuation statement or of any new
financing statement. AFL shall at all times maintain each office from which it
services Receivables and its principal executive office within the United States
of America.

                  (d)      AFL shall maintain its computer systems so that, from
and after the time of sale under this Agreement of the Initial Receivables to
ARFC, and from and after the time of sale under each Subsequent Purchase
Agreement of the Subsequent Receivables to ARFC, and the conveyance of the
Initial Receivables and the Subsequent Receivables by ARFC to the Trust, AFL's
master computer records (including archives) that shall refer to an Initial
Receivable or Subsequent Receivable indicate clearly that such Initial
Receivable or Subsequent Receivable has been sold to ARFC and has been conveyed
by ARFC to the Trust. Indication of the Trust's ownership of an Initial
Receivable or Subsequent Receivable shall be deleted from or modified on AFL's
computer systems when, and only when, the Initial Receivable or Subsequent
Receivable shall become a Purchased Receivable or shall have been paid in full.

                  (e)      If at any time AFL shall propose to sell, grant a
security interest in, or otherwise transfer any interest in motor vehicle
receivables to any prospective purchaser, lender or other transferee, AFL shall
give to such prospective purchaser, lender, or other transferee computer tapes,
records, or print-outs (including any restored from archives) that, if they
shall refer in any manner whatsoever to any Initial Receivable or Subsequent
Receivable, shall indicate clearly that such Initial Receivable or Subsequent
Receivable has been sold to ARFC and is owned by the Trust.

                  SECTION 4.2. OTHER LIENS OR INTERESTS. Except for the
conveyances hereunder and under any Subsequent Purchase Agreement, AFL will not
sell, pledge, assign or transfer to any other Person, or grant, create, incur,
assume or suffer to exist any Lien on the Initial Receivables or the Initial
Other Conveyed Property or on the Subsequent Receivables or the Subsequent Other
Conveyed Property, or any interest therein, and AFL shall defend the right,
title, and interest of ARFC and the Trust in and to the Initial Receivables and
the Initial Other Conveyed Property and the Subsequent Receivables and the
Subsequent Other Conveyed Property against all claims of third parties claiming
through or under AFL.

                  SECTION 4.3. COSTS AND EXPENSES. AFL shall pay all reasonable
costs and disbursements in connection with the performance of its obligations
hereunder and under each Subsequent Purchase Agreement and its Related
Documents.

                                     - 13 -
<PAGE>

                  SECTION 4.4.  INDEMNIFICATION.

                  (a)      AFL shall defend, indemnify and hold harmless ARFC,
the Trust, the Owner Trustee, the Security Insurer, the Indenture Trustee, the
Backup Servicer and the Noteholders from and against any and all costs,
expenses, losses, damages, claims, and liabilities, arising out of or resulting
from any breach of any of AFL's representations and warranties contained herein
or in any Subsequent Purchase Agreement.

                  (b)      AFL shall defend, indemnify and hold harmless ARFC,
the Trust, the Owner Trustee, the Indenture Trustee, the Backup Servicer 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 AFL or any affiliate thereof of a Financed Vehicle.

                  (c)      AFL shall defend and indemnify ARFC, the Trust, the
Owner Trustee, the Security Insurer, the Indenture Trustee, the Backup Servicer
and the Noteholders against any and all costs, expenses, losses, damages, claims
and liabilities arising out of or resulting from any action taken, or failed to
be taken, by it in respect of any portion of the Trust Property other than in
accordance with this Agreement, each Subsequent Purchase Agreement or the Sale
and Servicing Agreement and each Subsequent Transfer Agreement.

                  (d)      AFL agrees to pay, and shall defend, indemnify and
hold harmless ARFC, the Trust, the Owner Trustee, the Indenture Trustee, the
Backup Servicer and the Noteholders from and against any taxes that may at any
time be asserted against ARFC, the Owner Trustee, the Indenture Trustee, the
Backup Servicer and the Noteholders with respect to the transactions
contemplated in this Agreement or in any Subsequent Purchase Agreement,
including, without limitation, any sales, gross receipts, general corporation,
tangible or intangible personal property, privilege, or license taxes (but not
including any taxes asserted with respect to, and as of the date of, the sale,
transfer and assignment of the Initial Receivables and the Initial Other
Conveyed Property or the Subsequent Receivables or Subsequent Other Conveyed
Property to ARFC and of the Trust Property to the Trust or the issuance and
original sale of the Notes, or asserted with respect to ownership of the Initial
Receivables and Initial Other Conveyed Property or the Subsequent Receivables or
Subsequent Other Conveyed Property or the Trust Property which shall be
indemnified by AFL pursuant to clause (e) below, or federal, state or other
income taxes, arising out of distributions on the Notes or transfer taxes
arising in connection with the transfer of the Notes) and costs and expenses in
defending against the same, arising by reason of the acts to be performed by AFL
under this Agreement or under any Subsequent Purchase Agreement or imposed
against such Persons.

                  (e)      AFL agrees to pay, and to indemnify, defend and hold
harmless ARFC, the Trust, the Owner Trustee, the Indenture Trustee, the Backup
Servicer and the Noteholders from, any taxes which may at any time be asserted
against such Persons with respect to, and as of the date of, the conveyance or
ownership of the Initial Receivables or the Initial Other Conveyed Property
hereunder or the Subsequent Receivables or Subsequent Other Conveyed Property

                                     - 14 -
<PAGE>

under each Subsequent Purchase Agreement and the conveyance or ownership of the
Trust Property under the Sale and Servicing Agreement and the Subsequent
Transfer Agreements or the issuance and original sale of the Notes, including,
without limitation, any sales, gross receipts, personal property, tangible or
intangible personal property, privilege or license taxes (but not including any
federal or other income taxes, including franchise taxes, arising out of the
transactions contemplated hereby or transfer taxes arising in connection with
the transfer of Notes) and costs and expenses in defending against the same,
arising by reason of the acts to be performed by AFL under this Agreement or
under any Subsequent Purchase Agreement or imposed against such Persons.

                  (f)      AFL shall defend, indemnify, and hold harmless ARFC,
the Owner Trustee, the Security Insurer, the Indenture Trustee, the Backup
Servicer, the Trust and the Noteholders from and against any and all costs,
expenses, losses, claims, damages, and liabilities to the extent that such cost,
expense, loss, claim, damage, or liability arose out of, or was imposed upon
ARFC, the Trust, the Indenture Trustee and the Noteholders through the
negligence, willful misfeasance, or bad faith of AFL in the performance of its
duties under this Agreement or under any Subsequent Purchase Agreement or by
reason of reckless disregard of AFL's obligations and duties under this
Agreement or under any Subsequent Purchase Agreement.

                  (g)      AFL shall indemnify, defend and hold harmless ARFC,
the Owner Trustee, the Security Insurer, the Indenture Trustee, the Backup
Servicer, the Trust and the Noteholders from and against any loss, liability or
expense incurred by reason of the violation by AFL of federal or state
securities laws in connection with the registration or the sale of the Notes.

                  (h)      AFL shall indemnify, defend and hold harmless ARFC,
the Owner Trustee, the Security Insurer, the Indenture Trustee, the Backup
Servicer, the Trust and the Noteholders from and against any loss, liability or
expense imposed upon, or incurred by, ARFC, the Owner Trustee, the Indenture
Trustee, the Trust or the Noteholders as a result of the failure of any Initial
Receivable or Subsequent Receivable, or the sale of the related Financed
Vehicle, to comply with all requirements of applicable law.

                  (i)      AFL shall defend, indemnify, and hold harmless ARFC
from and against all costs, expenses, losses, claims, damages, and liabilities
arising out of or incurred in connection with the acceptance or performance of
AFL's trusts and duties as Servicer under the Sale and Servicing Agreement,
except to the extent that such cost, expense, loss, claim, damage, or liability
shall be due to the willful misfeasance, bad faith, or negligence (except for
errors in judgment) of ARFC.

                  (j)      AFL shall indemnify, defend and hold harmless ARFC,
the Owner Trustee, the Indenture Trustee, the Backup Servicer, the Trust and the
Noteholders from and against any loss, liability or expense imposed upon, or
incurred by, ARFC, the Owner Trustee

                                     - 15 -
<PAGE>

and the Indenture Trustee, the Trust and the Noteholders as a result of AFL's or
ARFC's use of the name "Arcadia."

                  Indemnification under this Section 4.4 shall include
reasonable fees and expenses of counsel and expenses of litigation and shall
survive termination of the Trust. The indemnity obligations hereunder shall be
in addition to any obligation that AFL may otherwise have.

                                   ARTICLE V
                                   REPURCHASES

                  SECTION 5.1. REPURCHASE OF RECEIVABLES UPON BREACH OF
WARRANTY. Upon the occurrence of a Repurchase Event AFL shall, unless such
breach shall have been cured in all material respects, repurchase such
Receivable from the Trust and, on or before the related Deposit Date, AFL shall
pay the Purchase Amount to the Trust pursuant to Section 4.5 of the Sale and
Servicing Agreement. It is understood and agreed that, except as set forth in
Section 6.1, the obligation of AFL to repurchase any Receivable as to which a
breach has occurred and is continuing shall, if such obligation is fulfilled,
constitute the sole remedy against AFL for such breach available to ARFC, the
Security Insurer, Noteholders, or the Indenture Trustee on behalf of
Noteholders. The provisions of this Section 5.1 are intended to grant the Owner
Trustee and the Indenture Trustee a direct right against AFL to demand
performance hereunder, and in connection therewith, AFL waives any requirement
of prior demand against ARFC with respect to such repurchase obligation. Any
such purchase shall take place in the manner specified in Section 2.6 of the
Sale and Servicing Agreement. Notwithstanding any other provision of this
Agreement, any Subsequent Purchase Agreement or the Sale and Servicing Agreement
or any Subsequent Transfer Agreement to the contrary, the obligation of AFL
under this Section shall not terminate upon a termination of AFL as Servicer
under the Sale and Servicing Agreement and shall be performed in accordance with
the terms hereof notwithstanding the failure of the Servicer or ARFC to perform
any of their respective obligations with respect to such Receivable under the
Sale and Servicing Agreement.

                  In addition to the foregoing and notwithstanding whether the
related Receivable shall have been purchased by AFL, AFL shall indemnify the
Owner Trustee, the Indenture Trustee, the Backup Servicer, the Security Insurer,
the Trust and the Noteholders against all costs, expenses, losses, damages,
claims and liabilities, including reasonable fees and expenses of counsel, which
may be asserted against or incurred by any of them as a result of third party
claims arising out of the events or facts giving rise to such Repurchase Events.

                  SECTION 5.2. REASSIGNMENT OF PURCHASED RECEIVABLES. Upon
deposit in the Collection Account of the Purchase Amount of any Receivable
repurchased by AFL under Section 5.1, ARFC and the Owner Trustee shall take such
steps as may be reasonably requested by AFL in order to assign to AFL all of
ARFC's and the Trust's right, title and interest in and to such Receivable and
all security and documents and all Other Conveyed Property conveyed to ARFC and
the Trust directly relating thereto, without recourse, representation or
warranty,

                                     - 16 -
<PAGE>

except as to the absence of liens, charges or encumbrances created by or arising
as a result of actions of ARFC or the Owner Trustee. Such assignment shall be a
sale and assignment outright, and not for security. If, following the
reassignment of a Purchased Receivable, in any enforcement suit or legal
proceeding, it is held that AFL may not enforce any such Receivable on the
ground that it shall not be a real party in interest or a holder entitled to
enforce the Receivable, ARFC and the Owner Trustee shall, at the expense of AFL,
take such steps as AFL deems reasonably necessary to enforce the Receivable,
including bringing suit in ARFC's or the Owner Trustee's name.

                  SECTION 5.3. WAIVERS. No failure or delay on the part of ARFC,
or the Owner Trustee as assignee of ARFC, in exercising any power, right or
remedy under this Agreement or under any Subsequent Purchase Agreement shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such power, right or remedy preclude any other or future exercise thereof or the
exercise of any other power, right or remedy.

                                   ARTICLE VI
                                  MISCELLANEOUS

                  SECTION 6.1. LIABILITY OF AFL. AFL shall be liable in
accordance herewith only to the extent of the obligations in this Agreement or
in any Subsequent Purchase Agreement specifically undertaken by AFL and the
representations and warranties of AFL.

                  SECTION 6.2. FAILURE OF AFL TO SELL SUBSEQUENT RECEIVABLES. In
the event that AFL shall fail to deliver and sell to ARFC any or all of the
Subsequent Receivables required under this Agreement and the Pre-Funded Amount
at the end of the Funding Period is greater than $100,000, AFL shall be
obligated to pay to ARFC the Liquidated Damages on the Business Day immediately
preceding the Distribution Date on which the Funding Period ends (or, if the
Funding Period does not end on a Distribution Date, on the first Distribution
Date following the end of the Funding Period).

                  SECTION 6.3. MERGER OR CONSOLIDATION OF AFL OR ARFC. Any
corporation or other entity (i) into which AFL or ARFC may be merged or
consolidated, (ii) resulting from any merger or consolidation to which AFL or
ARFC is a party or (iii) succeeding to the business of AFL or ARFC, in the case
of ARFC, which corporation has a certificate of incorporation containing
provisions relating to limitations on business and other matters substantively
identical to those contained in ARFC's certificate of incorporation, provided
that in any of the foregoing cases such corporation shall execute an agreement
of assumption to perform every obligation of AFL or ARFC, as the case may be,
under this Agreement and each Subsequent Purchase Agreement and, whether or not
such assumption agreement is executed, shall be the successor to AFL or ARFC, as
the case may be, hereunder and under each such Subsequent Purchase Agreement
(without relieving AFL or ARFC of its responsibilities hereunder, if it survives
such merger or consolidation) without the execution or filing of any document or
any further act by

                                     - 17 -
<PAGE>

any of the parties to this Agreement or each Subsequent Purchase Agreement.
Notwithstanding the foregoing, so long as an Insurer Default shall not have
occurred and be continuing, ARFC shall not merge or consolidate with any other
Person or permit any other Person to become the successor to ARFC's business
without the prior written consent of the Security Insurer. AFL or ARFC shall
promptly inform the other party, the Owner Trustee and the Indenture Trustee
and, so long as an Insurer Default shall not have occurred and be continuing,
the Security Insurer of such merger, consolidation or purchase and assumption.
Notwithstanding the foregoing, as a condition to the consummation of the
transactions referred to in clauses (i), (ii) and (iii) above, (x) immediately
after giving effect to such transaction, no representation or warranty made
pursuant to Sections 3.1 and 3.2 and this Agreement, or similar representation
or warranty made in any Subsequent Purchase Agreement, shall have been breached
(for purposes hereof, such representations and warranties shall speak as of the
date of the consummation of such transaction) and no event that, after notice or
lapse of time, or both, would become an event of default under the Insurance
Agreement, shall have occurred and be continuing, (y) AFL or ARFC, as
applicable, shall have delivered written notice of such consolidation, merger or
purchase and assumption to the Rating Agencies prior to the consummation of such
transaction and shall have delivered to the Owner Trustee and the Indenture
Trustee an Officer's Certificate and an Opinion of Counsel each stating that
such consolidation, merger or succession and such agreement of assumption comply
with this Section 6.3 and that all conditions precedent, if any, provided for in
this Agreement, or in each Subsequent Purchase Agreement, relating to such
transaction have been complied with, and (z) AFL or ARFC, as applicable, shall
have delivered to the Owner Trustee and the Indenture Trustee an Opinion of
Counsel, stating that, in the opinion of such counsel, either (A) all financing
statements and continuation statements and amendments thereto have been executed
and filed that are necessary to preserve and protect the interest of the Owner
Trustee in the Trust Property and reciting the details of the filings or (B) no
such action shall be necessary to preserve and protect such interest.

                  SECTION 6.4. LIMITATION ON LIABILITY OF AFL AND OTHERS. AFL
and any director, officer, employee or agent 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 under this Agreement.
AFL shall not be under any obligation to appear in, prosecute or defend any
legal action that is not incidental to its obligations under this Agreement, any
Subsequent Purchase Agreement or its Related Documents and that in its opinion
may involve it in any expense or liability.

                  SECTION 6.5. AFL MAY OWN NOTES. Subject to the provisions of
the Sale and Servicing Agreement, AFL and any Affiliate of AFL may in its
individual or any other capacity become the owner or pledgee of Notes with the
same rights as it would have if it were not AFL or an Affiliate thereof.

                  SECTION 6.6.  AMENDMENT.

                                     - 18 -
<PAGE>

                  (a)      This Agreement and any Subsequent Purchase Agreement
may be amended by AFL and ARFC, so long as an Insurer Default shall not have
occurred and becontinuing, with the prior written consent of the Security
Insurer and without the consent of the Owner Trustee, the Indenture Trustee or
any of the Noteholders (A) to cure any ambiguity or (B) to correct any
provisions in this Agreement or any such Subsequent Purchase Agreement;
PROVIDED, HOWEVER, that such action shall not, as evidenced by an Opinion of
Counsel delivered to the Owner Trustee and the Indenture Trustee, adversely
affect in any material respect the interests of any Noteholder.

                  (b)      This Agreement may also be amended from time to time
by AFL and ARFC, so long as an Insurer Default shall not have occurred and be
continuing, with the prior written consent of the Security Insurer, the Owner
Trustee and the Indenture Trustee and a Note Majority, for the purpose of adding
any provisions to or changing in any manner or eliminating any of the provisions
of this Agreement, or of modifying in any manner the rights of the Noteholders;
PROVIDED, HOWEVER, that no such amendment shall (i) increase or reduce in any
manner the amount of, or accelerate or delay the timing of, collections of
payments on Receivables, distributions that shall be required to be made on any
Note or the Note Interest Rate or (ii) reduce the aforesaid percentage required
to consent to any such amendment or any waiver hereunder, without the consent of
the Holders of all Notes then outstanding.

                  (c)      Prior to the execution of any such amendment or
consent, AFL shall have furnished written notification of the substance of such
amendment or consent to each Rating Agency.

                  (d)      Promptly after the execution of any such amendment or
consent, the Owner Trustee or the Indenture Trustee, as applicable, shall
furnish written notification of the substance of such amendment or consent to
each Noteholder.

                  (e)      It shall not be necessary for the consent of
Noteholders pursuant to this Section 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 Noteholders shall be
subject to such reasonable requirements as the Owner Trustee or the Indenture
Trustee, as applicable, may prescribe, including the establishment of record
dates. The consent of any Holder of a Note given pursuant to this Section or
pursuant to any other provision of this Agreement shall be conclusive and
binding on such Holder and on all future Holders of such Note and of any Note
issued upon the transfer thereof or in exchange thereof or in lieu thereof
whether or not notation of such consent is made upon the Note.

                  SECTION 6.7. NOTICES. All demands, notices and communications
to AFL or ARFC hereunder shall be in writing, personally delivered, or sent by
telecopier (subsequently confirmed in writing), reputable overnight courier or
mailed by certified mail, return receipt requested, and shall be deemed to have
been given upon receipt (a) in the case of AFL, to

                                     - 19 -
<PAGE>

Arcadia Financial Ltd., 7825 Washington Avenue South, Minneapolis, Minnesota
55439-2435, Attention: John A. Witham, or such other address as shall be
designated by AFL in a written notice delivered to the other party or to the
Owner Trustee or the Indenture Trustee, as applicable, or (b) in case of ARFC,
to Arcadia Receivables Finance Corp., 7825 Washington Avenue South, Suite 410,
Minneapolis, Minnesota 55439-2435, Attention: John A. Witham.

                  SECTION 6.8. MERGER AND INTEGRATION. Except as specifically
stated otherwise herein, this Agreement and the Related Documents set forth the
entire understanding of the parties relating to the subject matter hereof, and
all prior understandings, written or oral, are superseded by this Agreement and
the Related Documents. This Agreement may not be modified, amended, waived or
supplemented except as provided herein.

                  SECTION 6.9. SEVERABILITY OF PROVISIONS. If any one or more of
the covenants, provisions or terms of this Agreement shall be for any reason
whatsoever held invalid, then such covenants, provisions or terms shall be
deemed severable from the remaining covenants, provisions or terms of this
Agreement and shall in no way affect the validity or enforceability of the other
provisions of this Agreement.

                  SECTION 6.10. INTENTION OF THE PARTIES. The execution and
delivery of this Agreement and of each Subsequent Purchase Agreement shall
constitute an acknowledgment by AFL and ARFC that they intend that each
assignment and transfer herein and therein contemplated constitute a sale and
assignment outright, and not for security, of the Initial Receivables and the
Initial Other Conveyed Property and the Subsequent Receivables and Subsequent
Other Conveyed Property, as the case may be, conveying good title thereto free
and clear of any Liens, from AFL to ARFC, and that the Initial Receivables and
the Initial Other Conveyed Property and the Subsequent Receivables and
Subsequent Other Conveyed Property shall not be a part of AFL's estate in the
event of the bankruptcy, reorganization, arrangement, insolvency or liquidation
proceeding, or other proceeding under any federal or state bankruptcy or similar
law, or the occurrence of another similar event, of, or with respect to, AFL. In
the event that such conveyance is determined to be made as security for a loan
made by ARFC, the Trust or the Noteholders to AFL, the parties intend that AFL
shall have granted to ARFC a security interest in all of AFL's right, title and
interest in and to the Initial Receivables and the Initial Other Conveyed
Property and the Subsequent Receivables and Subsequent Other Conveyed Property,
as the case may be, conveyed pursuant to Section 2.1 hereof or pursuant to any
Subsequent Purchase Agreement, and that this Agreement and each Subsequent
Purchase Agreement shall constitute a security agreement under applicable law.

                  SECTION 6.11. GOVERNING LAW. This Agreement shall be construed
in accordance with, the laws of the State of New York without regard to the
principles of conflicts of laws thereof, and the obligations, rights and
remedies of the parties under this Agreement shall be determined in accordance
with such laws.

                                     - 20 -
<PAGE>

                  SECTION 6.12. 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.

                  SECTION 6.13. CONVEYANCE OF THE INITIAL RECEIVABLES AND THE
INITIAL OTHER CONVEYED PROPERTY TO THE TRUST. AFL acknowledges that ARFC
intends, pursuant to the Sale and Servicing Agreement, to convey the Initial
Receivables and the Initial Other Conveyed Property, together with its rights
under this Agreement, to the Trust on the date hereof. AFL acknowledges and
consents to such conveyance and waives any further notice thereof and covenants
and agrees that the representations and warranties of AFL contained in this
Agreement and the rights of ARFC hereunder are intended to benefit the Security
Insurer, the Owner Trustee, the Indenture Trustee, the Trust, and the
Noteholders. In furtherance of the foregoing, AFL covenants and agrees to
perform its duties and obligations hereunder, in accordance with the terms
hereof for the benefit of the Security Insurer, the Owner Trustee, the Indenture
Trustee, the Trust, and the Noteholders and that, notwithstanding anything to
the contrary in this Agreement, AFL shall be directly liable to the Owner
Trustee and the Trust (notwithstanding any failure by the Servicer, the Backup
Servicer or ARFC to perform its duties and obligations hereunder or under the
Sale and Servicing Agreement) and that the Owner Trustee may enforce the duties
and obligations of AFL under this Agreement against AFL for the benefit of the
Security Insurer, the Trust, and the Noteholders.

                  SECTION 6.14. NONPETITION COVENANT. Neither ARFC nor AFL shall
petition or otherwise invoke the process of any court or government authority
for the purpose of commencing or sustaining a case against the Trust (or, in the
case of AFL, against ARFC) 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 ARFC) or any substantial
part of its property, or ordering the winding up or liquidation of the affairs
of the Trust (or ARFC).

                                     - 21 -
<PAGE>

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

                                   ARCADIA RECEIVABLES FINANCE CORP.,
                                   as Purchaser

                                   By /s/ John A. Witham
                                      ---------------------------------------
                                      Name: John A. Witham
                                      Title: Senior Vice President and Chief
                                             Financial Officer

                                   ARCADIA FINANCIAL LTD., as Seller

                                   By /s/ John A. Witham
                                      -----------------------------------------
                                      Name: John A. Witham
                                      Title: Executive Vice President and Chief
                                             Financial Officer

                                     - 22 -
<PAGE>

                                   SCHEDULE A

                         SCHEDULE OF INITIAL RECEIVABLES

                       [Available in transactional files.]

                                       A-1

<PAGE>

                                   SCHEDULE B

                      REPRESENTATIONS AND WARRANTIES OF AFL

                  1.       CHARACTERISTICS OF RECEIVABLES. Each Receivable (A)
was originated by a Dealer for the retail sale of a Financed Vehicle in the
ordinary course of such Dealer's business and such Dealer had all necessary
licenses and permits to originate Receivables in the state where such Dealer was
located, was fully and properly executed by the parties thereto, was purchased
by AFL from such Dealer under an existing Dealer Agreement with AFL and was
validly assigned by such Dealer to AFL, (B) contains customary and enforceable
provisions such as to render the rights and remedies of the holder thereof
adequate for realization against the collateral security, and (C) is fully
amortizing and provides for level monthly payments (provided that the payment in
the first Monthly Period and the final Monthly Period of the life of the
Receivable may be minimally different from the level payment) which, if made
when due, shall fully amortize the Amount Financed over the original term.

                  2.       NO FRAUD OR MISREPRESENTATION. Each Receivable was
originated by a Dealer and was sold by the Dealer to AFL without any fraud or
misrepresentation on the part of such Dealer in either case.

                  3.       COMPLIANCE WITH LAW. All requirements of applicable
federal, state and local laws, and regulations thereunder (including, without
limitation, usury laws, the Federal Truth-in-Lending Act, the Equal Credit
Opportunity Act, the Fair Credit Billing Act, the Fair Credit Reporting Act, the
Fair Debt Collection Practices Act, the Federal Trade Commission Act, the
Magnuson-Moss Warranty Act, the Federal Reserve Board's Regulations "B" and "Z",
the Soldiers' and Sailors' Civil Relief Act of 1940, the Minnesota Motor Vehicle
Retail Installment Sales Act, and state adaptations of the National Consumer Act
and of the Uniform Consumer Credit Code and other consumer credit laws and equal
credit opportunity and disclosure laws) in respect of all of the Receivables and
each and every sale of Financed Vehicles, have been complied with in all
material respects, and each Receivable and the sale of the Financed Vehicle
evidenced by each Receivable complied at the time it was originated or made and
now complies in all material respects with all applicable legal requirements.

                  4.       ORIGINATION. Each Receivable was originated in the
United States.

                  5.       BINDING OBLIGATION. Each Receivable represents the
genuine, legal, valid and binding payment obligation of the Obligor thereon,
enforceable by the holder thereof in accordance with its terms, except (A) as
enforceability may be limited by bankruptcy, insolvency, reorganization or
similar laws affecting the enforcement of creditors' rights generally and by
equitable limitations on the availability of specific remedies, regardless of
whether such enforceability is considered in a proceeding in equity or at law
and (B) as such Receivable may be modified by the application after the Initial
Cutoff Date or any Subsequent Cutoff Date, as the

                                       B-1
<PAGE>

case may be, of the Soldiers' and Sailors' Civil Relief Act of 1940, as amended;
and all parties to each Receivable had full legal capacity to execute and
deliver such Receivable and all other documents related thereto and to grant the
security interest purported to be granted thereby.

                  6.       NO GOVERNMENT OBLIGOR. No Obligor is the United
States of America or any State or any agency, department, subdivision or
instrumentality thereof.

                  7.       OBLIGOR BANKRUPTCY. At the Initial Cutoff Date or
each Subsequent Cutoff Date, as applicable, no Obligor had been identified on
the records of AFL as being the subject of a current bankruptcy proceeding.

                  8.       SCHEDULE OF RECEIVABLES. The information set forth in
the Schedule of Receivables has been produced from the Electronic Ledger and was
true and correct in all material respects as of the close of business on the
Initial Cutoff Date or each Subsequent Cutoff Date, as applicable.

                  9.       MARKING RECORDS. By the Closing Date or by each
Subsequent Transfer Date, as applicable, AFL will have caused the portions of
the Electronic Ledger relating to the Receivables to be clearly and
unambiguously marked to show that the Receivables constitute part of the Trust
Property and are owned by the Trust in accordance with the terms of the Sale and
Servicing Agreement.

                  10.      COMPUTER TAPE. The Computer Tape made available by
AFL to ARFC, the Owner Trustee and the Indenture Trustee on the Closing Date or
on each Subsequent Transfer Date was complete and accurate as of the Initial
Cutoff Date or Subsequent Cutoff Date, as applicable, and includes a description
of the same Receivables that are described in the Schedule of Receivables.

                  11.      ADVERSE SELECTION. No selection procedures adverse to
the Noteholders were utilized in selecting the Receivables from those
receivables owned by AFL which met the selection criteria contained in the Sale
and Servicing Agreement.

                  12.      CHATTEL PAPER. The Receivables constitute chattel
paper within the meaning of the UCC as in effect in the States of Minnesota and
New York.

                  13.      ONE ORIGINAL. There is only one original executed
copy of each Receivable.

                  14.      RECEIVABLE FILES COMPLETE. There exists a Receivable
File pertaining to each Receivable, and such Receivable File contains (a) a
fully executed original of the Receivable, (b) a certificate of insurance,
application form for insurance signed by the Obligor or a signed representation
letter from the Obligor named in the Receivable pursuant to which the Obligor
has agreed to obtain physical damage insurance for the Financed Vehicle, or
copies

                                       B-2

<PAGE>

thereof, (c) the original Lien Certificate or application therefor and (d) a
credit application signed by the Obligor, or a copy thereof. Each of such
documents which is required to be signed by the Obligor has been signed by the
Obligor in the appropriate spaces. All blanks on any form have been properly
filled in and each form has otherwise been correctly prepared. The complete file
for each Receivable currently is in the possession of the Custodian.

                  15.      RECEIVABLES IN FORCE. No Receivable has been
satisfied, subordinated or rescinded, and the Financed Vehicle securing each
such Receivable has not been released from the lien of the related Receivable in
whole or in part. No provisions of any Receivable have been waived, altered or
modified in any respect since its origination, except by instruments or
documents identified in the Receivable File. No Receivable has been modified as
a result of application of the Soldiers' and Sailors' Civil Relief Act of 1940,
as amended.

                  16.      LAWFUL ASSIGNMENT. No Receivable was originated in,
or is subject to the laws of, any jurisdiction the laws of which would make
unlawful, void or voidable the sale, transfer and assignment of such Receivable
under this Agreement or pursuant to transfers of the Notes.

                  17.      GOOD TITLE. No Receivable has been sold, transferred,
assigned or pledged by AFL to any Person other than ARFC; immediately prior to
the conveyance of the Receivables to ARFC pursuant to this Agreement or any
Subsequent Purchase Agreement, as applicable, ARFC or AFL had good and
indefeasible title thereto, free and clear of any Lien, and immediately upon the
transfer thereof, ARFC shall have good and indefeasible title to and will be the
sole owner of each Receivable, free of any Lien. No Dealer has a participation
in, or other right to receive, proceeds of any Receivable. AFL has not taken any
action to convey any right to any Person that would result in such Person having
a right to payments received under the related Insurance Policies or the related
Dealer Agreements or Dealer Assignments or to payments due under such
Receivables.

                  18.      SECURITY INTEREST IN FINANCED VEHICLE. Each
Receivable created or shall create a valid, binding and enforceable first
priority security interest in favor of AFL in the Financed Vehicle. The Lien
Certificate and original certificate of title for each Financed Vehicle show, or
if a new or replacement Lien Certificate is being applied for with respect to
such Financed Vehicle, the Lien Certificate will be received within 180 days of
the Closing Date or any Subsequent Transfer Date, as applicable, and will show,
AFL named as the original secured party under each Receivable as the holder of a
first priority security interest in such Financed Vehicle. With respect to each
Receivable for which the Lien Certificate has not yet been returned from the
Registrar of Titles, AFL has received written evidence from the related Dealer
that such Lien Certificate showing AFL as first lienholder has been applied for.
AFL's security interest has been validly assigned by AFL to ARFC pursuant to
this Agreement or any Subsequent Purchase Agreement, as applicable. Immediately
after the sale, transfer and assignment thereof by ARFC to the Trust, each
Receivable will be secured by an enforceable and perfected first priority
security interest in the Financed Vehicle in favor of the Trust as secured

                                       B-3
<PAGE>

party, which security interest is prior to all other Liens upon and security
interests in such Financed Vehicle which now exist or may hereafter arise or be
created (except, as to priority, for any lien for taxes, labor or materials
affecting a Financed Vehicle). As of the Initial Cutoff Date or each Subsequent
Cutoff Date, as applicable, there were no Liens or claims for taxes, work, labor
or materials affecting a Financed Vehicle which are or may be Liens prior or
equal to the lien of the related Receivable.

                  19.      ALL FILINGS MADE. All filings (including, without
limitation, UCC filings) required to be made by any Person and actions required
to be taken or performed by any Person in any jurisdiction to give the Trust a
first priority perfected lien on, or ownership interest in, the Receivables and
the Other Conveyed Property have been made, taken or performed.

                  20.      NO IMPAIRMENT. AFL has not done anything to convey
any right to any Person that would result in such Person having a right to
payments due under a Receivable or otherwise to impair the rights of ARFC, the
Trust, the Indenture Trustee, the Security Insurer and the Noteholders in any
Receivable or the proceeds thereof.

                  21.      RECEIVABLE NOT ASSUMABLE. No Receivable is assumable
by another Person in a manner which would release the Obligor thereof from such
Obligor's obligations to AFL with respect to such Receivable.

                  22.      NO DEFENSES. No Receivable is subject to any right of
rescission, setoff, counterclaim or defense and no such right has been asserted
or threatened with respect to any Receivable.

                  23.      NO DEFAULT. There has been no default, breach,
violation or event permitting acceleration under the terms of any Receivable
(other than payment delinquencies of not more than 30 days), and no condition
exists or event has occurred and is continuing that with notice, the lapse of
time or both would constitute a default, breach, violation or event permitting
acceleration under the terms of any Receivable, and there has been no waiver of
any of the foregoing. As of the Cutoff Date or any Subsequent Transfer Date, as
applicable, no Financed Vehicle had been repossessed.

                  24.      INSURANCE. As of the date hereof or as of the date of
any Subsequent Purchase Agreement, as applicable, each Financed Vehicle is
covered by a comprehensive and collision insurance policy (i) in an amount at
least equal to the lesser of (a) its maximum insurable value or (b) the
principal amount due from the Obligor under the relate Receivable, (ii) naming
AFL as loss payee and (iii) insuring against loss and damage due to fire, theft,
transportation, collision and other risks generally covered by comprehensive and
collision coverage. Each Receivable requires the Obligor to maintain physical
loss and damage insurance, naming AFL and its successors and assigns as
additional insured parties, and each Receivable permits the holder thereof to
obtain physical loss and damage insurance at the expense of the Obligor if the
Obligor fails to do so. No Financed Vehicle was or had previously been insured

                                       B-4
<PAGE>

under a policy of Force-Placed Insurance on the Initial Cutoff Date or any
Subsequent Cutoff Date, as applicable.

                  25.      PAST DUE. At the Initial Cutoff Date or any
Subsequent Cutoff Date, as applicable, no Receivable was more than 30 days past
due.

                  26.      REMAINING PRINCIPAL BALANCE. At the Initial Cutoff
Date or any Subsequent Cutoff Date, as applicable, each Receivable had a
remaining principal balance equal to or greater than $500.00 and the Principal
Balance of each Receivable set forth in the Schedule of Receivables is true and
accurate in all material respects.

                  27.      FINAL SCHEDULED MATURITY DATE. No Receivable has a
final maturity later than December 31, 2006.

                  28.      CERTAIN CHARACTERISTICS. (A) Each Initial Receivable
had a remaining maturity, as of the Initial Cutoff Date, of at least 3 months
but not more than 84 months; (B) each Initial Receivable had an original
maturity of at least 12 months but not more than 84 months; (C) each Initial
Receivable had an original principal balance of at least $3,999.00 and not more
than $62,999.96; (D) each Initial Receivable had a remaining Principal Balance
as of the Initial Cutoff Date of at least $572.71 and not more than $62,999.96;
(E) each Initial Receivable has an Annual Percentage Rate of at least 8.00% and
not more than 24.90%; (F) no Initial Receivable was more than 30 days past due
as of the Initial Cutoff Date; (G) no funds have been advanced by the Seller,
the Servicer, any Dealer, or anyone acting on behalf of any of them in order to
cause any Receivable to qualify under clause (F) above; (H) no Initial
Receivable has a final scheduled payment date on or before December 1, 1999; (I)
the Principal Balance of each Receivable set forth in Schedule of Receivables is
true and accurate in all material respects as of the Initial Cutoff Date; (J)
14.79% of the Initial Receivables, by principal balance as of the Initial Cutoff
Date, was attributable to loans for the purchase of new Financed Vehicles and
85.21% of the Initial Receivables was attributable to loans for the purchase of
used Financed Vehicles; (K) not more than 4.00% of the Aggregate Principal
Balance of such Receivables will be attributable to Receivables with an Annual
Percentage Rate in excess of 21.00%, (L) not more than 0.25% of the Aggregate
Principal Balance of such Receivables will represent loans on Financed Vehicles
in excess of $50,000.00, (M) not more than 3.00% of the Aggregate Principal
Balance of such Receivables will represent loans with original terms greater
than 72 months and (N) not more than 0.25% of the Aggregate Principal Balance of
such Receivables will represent loans secured by Financed Vehicles that
previously secured a loan originated by AFL with an obligor other than the
current Obligor.

                                       B-5<PAGE>

                                                                     EXHIBIT 4.5

                                                              FINANCIAL GUARANTY
                                                                INSURANCE POLICY

Obligor:  Arcadia Automobile Receivables Trust, 1999-C      Policy No.:  50858-N
Obligations: $600,000,000 Automobile Receivables-      Date of Issuance: 9/22/99
             Backed Notes, as described in Endorsement
             No. 1

          FINANCIAL SECURITY ASSURANCE INC. ("Financial Security"), for
consideration received, hereby UNCONDITIONALLY AND IRREVOCABLY GUARANTEES to
each Holder, subject only to the terms of this Policy (which includes each
endorsement hereto), the full and complete payment by the Obligor of Scheduled
Payments of principal of, and interest on, the Obligations.

          For the further protection of each Holder, Financial Security
irrevocably and unconditionally guarantees :

          (a)  payment of the amount of any distribution of principal of,
     or interest on, the Obligations made during the Term Of This Policy to
     such Holder that is subsequently avoided in whole or in part as a
     preference payment under applicable law (such payment to be made by
     Financial Security in accordance with Endorsement No. 1 hereto).

          (b)  payment of any amount required to be paid under this Policy
     by Financial Security following Financial Security's receipt of notice
     as described in Endorsement No. 1 hereto.

          Financial Security shall be subrogated to the rights of each Holder to
receive payments under the Obligations to the extent of any payment by Financial
Security hereunder.

          Except to the extent expressly modified by an endorsement hereto, the
following terms shall have the meanings specified for all purposes of this
Policy.  "Holder" means the registered owner of any Obligation as indicated on
the registration books maintained by or on behalf of the Obligor for such
purpose or, if the Obligation is in bearer form, the holder of the Obligation.
"Scheduled Payments" means payments which are scheduled to be made during the
Term Of This Policy in accordance with the original terms of the Obligations
when issued and without regard to any amendment or modification of such
Obligations thereafter; payments which become due on an accelerated basis as a
result of (a) a default by the Obligor, (b) an election by the Obligor to pay
principal on an accelerated basis or (c) any other cause, shall not constitute
"Scheduled Payments" unless Financial Security shall elect, in its sole
discretion, to pay such principal due upon such acceleration together with any
accrued interest to the date of acceleration.  "Term Of This Policy" shall have
the meaning set forth in Endorsement No. 1 hereto.

          This Policy sets forth in full the undertaking of Financial Security,
and shall not be modified, altered or affected by any other agreement or
instrument, including any modification or amendment thereto, or by the merger,
consolidation or dissolution of the Obligor.  Except to the extent expressly
modified by an endorsement hereto, the premiums paid in respect of this Policy
are nonrefundable for any reason whatsoever, including payment, or provision
being made for payment, of the Obligations prior to maturity.  This Policy may
not be canceled or revoked during the Term Of This Policy.  THIS POLICY IS NOT
COVERED BY THE PROPERTY/CASUALTY INSURANCE SECURITY FUND SPECIFIED IN ARTICLE 76
OF THE NEW YORK INSURANCE LAW.

          In witness whereof, FINANCIAL SECURITY ASSURANCE INC. has caused this
Policy to be executed on its behalf by its Authorized Officer.

                                     FINANCIAL SECURITY ASSURANCE INC.

                                        /s/  Russell B. Brewer II
                                     By________________________________
                                          AUTHORIZED OFFICER

<PAGE>

                                 ENDORSEMENT NO. 1

FINANCIAL SECURITY                                     350 Park Avenue
ASSURANCE INC.                                         New York, New York 10022

OBLIGOR:            Arcadia Automobile Receivables Trust, 1999-C

OBLIGATIONS:        $242,000,000 6.25% Class A-1 Automobile Receivables-Backed
                    Notes
                    $150,000,000 6.90% Class A-2 Automobile Receivables-Backed
                    Notes
                    $208,000,000 7.20% Class A-3 Automobile Receivables-Backed
                    Notes

Policy No.:         50858-N
Date of Issuance:   September 22, 1999

     1.  DEFINITIONS.  For all purposes of this Policy, the terms specified
below shall have the meanings or constructions provided below. Capitalized terms
used herein and not otherwise defined herein shall have the meanings provided in
the Indenture unless otherwise specified.

     "BUSINESS DAY" means any day other than a Saturday, Sunday, legal holiday
or other day on which commercial banking institutions in the City of New York or
Minneapolis, Minnesota or any other location of any successor Servicer,
successor Owner Trustee, successor Indenture Trustee or successor Collateral
Agent are authorized or obligated by law, executive order, or governmental
decree to remain closed.

     "INDENTURE" means the Indenture, dated as of September 1, 1999, between the
Obligor and Norwest Bank Minnesota, National Association, as Trustee and
Indenture Collateral Agent, as amended from time to time with the consent of
Financial Security.

     "POLICY" means this Financial Guaranty Insurance Policy and includes each
endorsement thereto.

     "RECEIPT" and "RECEIVED" mean actual delivery to Financial Security and to
the Fiscal Agent (as defined below), if any, prior to 12:00 noon, New York City
time, on a Business Day; delivery either on a day that is not a Business Day, or
after 12:00 noon, New York City time, shall be deemed to be receipt on the next
succeeding Business Day. If any notice or certificate given hereunder by the
Trustee is not in proper form or is not properly completed, executed or
delivered, it shall be deemed not to have been Received, and Financial Security
or its Fiscal Agent shall promptly so advise the Trustee and the Trustee may
submit an amended notice.

<PAGE>

     "SCHEDULED PAYMENTS" means, as to each Payment Date, the payment to be made
to Holders in accordance with the original terms of the Obligations when issued
and without regard to any subsequent amendment or modification of the
Obligations or of the Indenture except amendments or modifications to which
Financial Security has given its prior written consent in an amount equal to
(i) the Noteholders' Interest Distributable Amount and (ii) the Noteholders'
Principal Distributable Amount.  Scheduled Payments do not include payments
which become due on an accelerated basis as a result of (a) a default by the
Obligor, (b) an election by the Obligor to pay principal on an accelerated
basis, (c) the occurrence of an Event of Default under the Indenture or (d) any
other cause, unless Financial Security elects, in its sole discretion, to pay in
whole or in part such principal due upon acceleration, together with any accrued
interest to the date of acceleration.  In the event Financial Security does not
so elect, this Policy will continue to guarantee payment on the Notes in
accordance with their original terms. Scheduled Payments shall not include
(x) any portion of a Noteholders' Interest Distributable Amount due to
Noteholders because a notice and certificate in proper form as required by
paragraph 2 hereof was not timely Received by Financial Security, (y) any
portion of a Noteholders' Interest Distributable Amount due to Noteholders
representing interest on any Noteholders' Interest Carryover Shortfall accrued
from and including the date of payment of the amount of such Noteholders'
Interest Carryover Shortfall pursuant hereto, or (z) any Note Prepayment Amounts
or any Note Prepayment Premiums, unless, in each case, Financial Security
elects, in its sole discretion, to pay such amount in whole or in part.
Scheduled Payments shall not include any amounts due in respect of the
Obligations attributable to any increase in interest rate, penalty or other sum
payable by the Obligor by reason of any default or event of default in respect
of the Obligations, or by reason of any deterioration of the credit worthiness
of the Obligor, nor shall Scheduled Payments include, nor shall coverage be
provided under this Policy in respect of, any taxes, withholding or other charge
with respect to any Holder imposed by any governmental authority due in
connection with the payment of any Scheduled Payment to a Holder.

     "TERM OF THIS POLICY" means the period from and including the Closing Date
to and including the latest of the date on which (i) all Scheduled Payments have
been paid or deemed to be paid within the meaning of Section 4.01 of the
Indenture; (ii) any period during which any Scheduled Payment could have been
avoided in whole or in part as a preference payment under applicable bankruptcy,
insolvency, receivership or similar law shall have expired and (iii) if any
proceedings requisite to avoidance as a preference payment have been commenced
prior to the occurrence of (i) and (ii), a final and nonappealable order in
resolution of each such proceeding has been entered.

     "TRUSTEE" means Norwest Bank Minnesota, National Association, in its
capacity as Trustee under the Indenture and any successor in such capacity.

                                          2
<PAGE>

     2.  NOTICES AND CONDITIONS TO PAYMENT IN RESPECT OF SCHEDULED PAYMENTS.
Following Receipt by Financial Security of a notice and certificate from the
Trustee in the form attached as Exhibit A to this Endorsement, Financial
Security will pay any amount payable hereunder in respect of Scheduled Payments
on the Obligations out of the funds of Financial Security on the later to occur
of (a) 12:00 noon, New York City time, on the third Business Day following such
Receipt; and (b) 12:00 noon, New York City time, on the date on which such
payment is due on the Obligations. Payments due hereunder in respect of
Scheduled Payments will be disbursed to the Trustee by wire transfer of
immediately available funds.

     Financial Security shall be entitled to pay any amount hereunder in respect
of Scheduled Payments on the Obligations, including any amount due on the
Obligations upon acceleration, whether or not any notice and certificate shall
have been Received by Financial Security as provided above; PROVIDED, HOWEVER,
that by the acceptance of this Policy, the Trustee agrees to provide, upon
request by Financial Security, a notice and certificate in respect of any such
payment by Financial Security.  Financial Security shall be entitled to pay
hereunder any amount due on the Obligations upon acceleration at any time or
from time to time, in whole or in part, prior to the scheduled date of payment
thereof; Scheduled Payments insured hereunder shall not include interest, in
respect of principal paid hereunder upon acceleration, accruing from after the
date of such payment of principal.  Financial Security's obligations hereunder
in respect of Scheduled Payments shall be discharged to the extent such amounts
are paid by the Issuer in accordance with the Indenture or disbursed by
Financial Security as provided herein whether or not such funds are properly
applied by the Trustee except as otherwise provided in paragraph 3 of this
Endorsement.

     3.  NOTICES AND CONDITIONS TO PAYMENT IN RESPECT OF SCHEDULED PAYMENTS
AVOIDED AS PREFERENCE PAYMENTS.  If any Scheduled Payment is avoided as a
preference payment under applicable bankruptcy, insolvency, receivership or
similar law, Financial Security will pay such amount out of the funds of
Financial Security on the later of (a) the date when due to be paid pursuant to
the Order referred to below or (b) the first to occur of (i) the fourth Business
Day following Receipt by Financial Security from the Trustee of (A) a certified
copy of the order of the court or other governmental body which exercised
jurisdiction to the effect that the Holder is  required to return principal of
or interest paid on the Obligations during the Term Of This Policy because such
payments were avoidable as preference payments under applicable bankruptcy law
(the "Order"), (B) a certificate of the Holder that the Order has been entered
and is not subject to any stay and (C) an assignment duly executed and delivered
by the Holder, in such form as is reasonably required by Financial Security, and
provided to the Holder by Financial Security, irrevocably assigning to Financial
Security all rights and claims of the Holder relating to or arising under the
Obligations against the estate of the Obligor or otherwise with respect to such
preference payment or (ii) the date of Receipt by Financial Security from the
Trustee of the items referred to in clauses (A), (B) and (C) above if, at least
four Business Days prior to such date of Receipt, Financial Security shall have
Received written notice from the Trustee that such items were to be delivered on
such date and such date was specified in such notice. Such payment shall be
disbursed to the receiver, conservator, debtor-in-possession or trustee in
bankruptcy named in the Order and not to the Trustee or any Holder directly
(unless a Holder has previously paid such amount to the receiver, conservator,
debtor-in-possession or trustee in bankruptcy named in the Order, in which case
such payment shall be disbursed to the Trustee for distribution to such Holder
upon proof of such payment reasonably satisfactory to Financial Security). In
connection

                                          3
<PAGE>

with the foregoing, Financial Security shall have the rights provided pursuant
to Section 5.19 of the Indenture.

     4.  GOVERNING LAW.  This Policy shall be governed by and construed in
accordance with the laws of the State of New York without giving effect to the
conflict of laws principles thereof.

     5.  FISCAL AGENT.  At any time during the Term Of This Policy, Financial
Security may appoint a fiscal agent (the "Fiscal Agent") for purposes of this
Policy by written notice to the Trustee at the notice address specified in the
Indenture specifying the name and notice address of the Fiscal Agent.  From and
after the date of receipt of such notice by the Trustee, (i) copies of all
notices and documents required to be delivered to Financial Security pursuant to
this Policy shall be simultaneously delivered to the Fiscal Agent and to
Financial Security and shall not be deemed Received until Received by both, and
(ii) all payments required to be made by Financial Security under this policy
may be made directly by Financial Security or by the Fiscal Agent on behalf of
Financial Security. The Fiscal Agent is the agent of Financial Security only and
the Fiscal Agent shall in no event be liable to any Holder for any acts of the
Fiscal Agent or any failure of Financial Security to deposit, or cause to be
deposited, sufficient funds to make payments due under the Policy.

     6.  WAIVER OF DEFENSES.  To the fullest extent permitted by applicable law,
Financial Security agrees not to assert, and hereby waives, for the benefit of
each Holder, all rights (whether by counterclaim, setoff or otherwise) and
defenses (including, without limitation, the defenses of fraud), whether
acquired by subrogation, assignment or otherwise, to the extent that such rights
and defenses may be available to Financial Security to avoid payment of its
obligations under this Policy in accordance with the express provisions of this
Policy.

     7.  NOTICES.  All notices to be given hereunder shall be in writing (except
as otherwise specifically provided herein) and shall be mailed by registered
mail or personally delivered or telecopied to Financial Security as follows:

          Financial Security Assurance Inc.
          350 Park Avenue
          New York, NY  10022
          Attention:  Senior Vice President - Transaction Oversight
          Telecopy No.:   (212) 339-3518
          Confirmation:   (212) 826-0100

     Financial Security may specify a different address or addresses by writing
mailed or delivered to the Trustee.

     8.  PRIORITIES.  In the event that any term or provision of the fact of
this Policy is inconsistent with the provisions of this Endorsement, the
provisions of this Endorsement shall take precedence and shall be binding.

     9.  EXCLUSIONS FROM INSURANCE GUARANTY FUNDS.  This Policy is not covered
by the Property/Casualty Insurance Security Fund specified in Article 76 of the
New York Insurance Law.  This Policy is not covered by the Florida Insurance
Guaranty Association created under Part II of Chapter 631 of the Florida
Insurance Code.  In the event that Financial Security were to

                                          4
<PAGE>

become insolvent, any claims arising under this Policy are excluded from
coverage by the California Insurance Guaranty Association, established pursuant
to Article 14.2 of Chapter 1 of Part 2 of Division 1 of the California Insurance
Code.

     10.  SURRENDER OF POLICY.  The Holder shall surrender this Policy to
Financial Security for cancellation upon expiration of the Term Of This Policy.

     IN WITNESS WHEREOF, FINANCIAL SECURITY ASSURANCE INC. has caused this
Endorsement No. 1 to be executed by its Authorized Officer.

                                   FINANCIAL SECURITY ASSURANCE INC.

                                   By:       /s/ Russell B. Brewer II
                                        ----------------------------------------
                                             Authorized Officer

                                          5
<PAGE>

                                                                       EXHIBIT A
                                                            To Endorsement No. 1

                          NOTICE OF CLAIM AND CERTIFICATE
                              (Letterhead of Trustee)

Financial Security Assurance Inc.
350 Park Avenue
New York, NY  10022
Attention:  Senior Vice President

     Re:  ARCADIA AUTOMOBILE RECEIVABLES TRUST, 1999-C

     The undersigned, a duly authorized officer of Norwest Bank Minnesota,
National Association (the "Trustee"), hereby certifies to Financial Security
Assurance Inc. ("Financial Security"), with reference to Financial Guaranty
Insurance Policy No. 50858-N dated September 22, 1999 (the "Policy") issued by
Financial Security in respect of the $242,000,000 6.25% Class A-1 Automobile
Receivables-Backed Notes, the $150,000,000 6.90% Class A-2 Automobile
Receivables-Backed Notes and the $208,000,000 7.20% Class A-3 Automobile
Receivables-Backed Notes, of the above referenced Trust (the "Obligations"),
that:

        (i)    The Trustee is the Trustee under the Indenture for the Holders.

        (ii)   The sum of all amounts on deposit (or scheduled to be on deposit)
in the Note Distribution Account and available for distribution to the Holders
pursuant to the Indenture will be $_________ (the "Shortfall") less than the
aggregate amount of Scheduled Payments due on ___________________.

        (iii)  The Trustee is making a claim under the Policy for the Shortfall
to be applied to the payment of Scheduled Payments.

        (iv)   The Trustee agrees that, following receipt of funds from
Financial Security, it shall (a) hold such amounts in trust and apply the same
directly to the payment of Scheduled Payments on the Obligations when due;
(b) not apply such funds for any other purpose; (c) not commingle such funds
with other funds held by the Trustee and (d) maintain an accurate record of such
payments with respect to each Obligation and the corresponding claim on the
Policy and proceeds thereof, and, if the Obligation is required to be
surrendered or presented for such payment, shall stamp on each such Obligation
the legend $"[insert applicable amount] paid by Financial Security and the
balance hereof has been canceled and reissued" and then shall deliver such
Obligation to Financial Security.

        (v)    The Trustee, on behalf of the Holders, hereby assigns to
Financial Security the rights of the Holders with respect to the Obligations to
the extent of any payments under the Policy, including, without limitation, any
amounts due to the Holders in respect of securities law violations arising from
the offer and sale of the Obligations.  The foregoing assignment is in

                                         A-1
<PAGE>

addition to, and not in limitation of, rights of subrogation otherwise available
to Financial Security in respect of such payments.  Payments to Financial
Security in respect of the foregoing assignment shall in all cases be subject to
and subordinate to the rights of the Holders to receive all Scheduled Payments
in respect of the Obligations. The Trustee shall take such action and deliver
such instruments as may be reasonably requested or required by Financial
Security to effectuate the purpose or provisions of this clause (v).

        (vi)   The Trustee, on its behalf and on behalf of the Holders, hereby
appoints Financial Security as agent and attorney-in-fact for the Trustee and
each such Holder in any legal proceeding with respect to the Obligations.  The
Trustee hereby agrees that, so long as an Insurer Default (as defined in the
Indenture) shall not exist, Financial Security may at any time during the
contribution of any proceeding by or against the Obligor under the United States
Bankruptcy Code or any other applicable bankruptcy, insolvency, receivership,
rehabilitation or similar law (an "Insolvency Proceeding") direct all matters
relating to such Insolvency Proceeding, including without limitation, (A) all
matters relating to any claim in connection with an Insolvency Proceeding
seeking the avoidance as a preferential transfer of any payment made with
respect to the Obligations (a "Preference Claim"), (B) the direction of any
appeal of any order relating to any Preference Claim at the expense of Financial
Security but subject to reimbursement as provided in the Insurance Agreement and
(C) the posting of any surety, supersedeas or performance bond pending any such
appeal. In addition, the Trustee hereby agrees that Financial Security shall be
subrogated to, and the Trustee on its behalf and on behalf of each Holder,
hereby delegates and assigns, to the fullest extent permitted by law, the rights
of the Trustee and each Holder in the conduct of any Insolvency Proceeding,
including, without limitation, all rights of any party to an adversary
proceeding or action with respect to any court order issued in connection with
any such Insolvency Proceeding.

        (vii)  Payment should be made by wire transfer directed to [SPECIFY
ACCOUNT].

     Unless the context otherwise requires, capitalized terms used in this
Notice of Claim and Certificate and not defined herein shall have the meanings
provided in the Policy.

                                         A-2
<PAGE>

     IN WITNESS WHEREOF, the Trustee has executed and delivered this Notice of
Claim and Certificate as of the ____ day of ______, _____.

                                   NORWEST BANK MINNESOTA, NATIONAL
                                   ASSOCIATION

                                   By_________________________________
                                   Title______________________________

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

For Financial Security or
Fiscal Agent Use Only

Wire transfer sent on ____________ by ___________________________

Confirmation Number _____________________.

                                         A-3

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