Document:

EXECUTION COPY

               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2004-C

                $ 63,000,000 2.390% Asset-Backed Notes, Class A-1
                $106,000,000 3.040% Asset-Backed Notes, Class A-2
                $ 74,000,000 3.402% Asset-Backed Notes, Class A-3
                $107,000,000 3.777% Asset-Backed Notes, Class A-4

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

                                    INDENTURE

                          Dated as of December 1, 2004

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

                    JPMORGAN CHASE BANK, NATIONAL ASSOCIATION
                                Indenture Trustee

================================================================================

                                TABLE OF CONTENTS

                                                                                                               Page
                                                                                                               ----

ARTICLE I          Definitions....................................................................................3

     SECTION 1.1.     Definitions.................................................................................3
     SECTION 1.2.     Incorporation by Reference of Trust Indenture Act...........................................3
     SECTION 1.3.     Rules of Construction.......................................................................3

ARTICLE II         The Notes......................................................................................4

     SECTION 2.1.     Form........................................................................................4
     SECTION 2.2.     Execution, Authentication and Delivery......................................................4
     SECTION 2.3.     Temporary Notes.............................................................................5
     SECTION 2.4.     Registration; Registration of Transfer and Exchange.........................................5
     SECTION 2.5.     Mutilated, Destroyed, Lost or Stolen Notes..................................................7
     SECTION 2.6.     Persons Deemed Owners.......................................................................8
     SECTION 2.7.     Access to List of Noteholders' Names and Addresses..........................................8
     SECTION 2.8.     Maintenance of Office or Agency.............................................................8
     SECTION 2.9.     Payment of Principal and Interest; Defaulted Interest.......................................8
     SECTION 2.10.    Cancellation................................................................................9
     SECTION 2.11.    Release of Pledged Property.................................................................9

ARTICLE III        Covenants.....................................................................................10

     SECTION 3.1.     Payment of Principal and Interest..........................................................10
     SECTION 3.2.     Maintenance of Office or Agency............................................................10
     SECTION 3.3.     Money for Payments to be Held in Trust.....................................................10
     SECTION 3.4.     Existence..................................................................................12
     SECTION 3.5.     Protection of Pledged Property.............................................................12
     SECTION 3.6.     Opinions as to Pledged Property............................................................13
     SECTION 3.7.     Performance of Obligations; Servicing of Receivables.......................................13
     SECTION 3.8.     Negative Covenants.........................................................................14
     SECTION 3.9.     Annual Statement as to Compliance..........................................................15
     SECTION 3.10.    Issuer May Consolidate, Etc. Only on Certain Terms.........................................15
     SECTION 3.11.    Successor or Transferee....................................................................17
     SECTION 3.12.    No Other Business..........................................................................18
     SECTION 3.13.    No Borrowing...............................................................................18
     SECTION 3.14.    Servicer's Obligations.....................................................................18
     SECTION 3.15.    Guarantees, Loans, Advances and Other Liabilities..........................................18
     SECTION 3.16.    Capital Expenditures.......................................................................18
     SECTION 3.17.    Compliance with Laws.......................................................................18
     SECTION 3.18.    Restricted Payments........................................................................18
     SECTION 3.19.    Notice of Events of Default................................................................19
     SECTION 3.20.    Further Instruments and Acts...............................................................19
     SECTION 3.21.    Income Tax Characterization................................................................19

                                       i

ARTICLE IV         Satisfaction and Discharge....................................................................19

     SECTION 4.1.     Satisfaction and Discharge of Indenture....................................................19
     SECTION 4.2.     Application of Trust Money.................................................................20
     SECTION 4.3.     Repayment of Moneys Held by Note Paying Agent..............................................20

ARTICLE V          Remedies......................................................................................21

     SECTION 5.1.     Events of Default..........................................................................21
     SECTION 5.2.     Rights Upon Event of Default...............................................................22
     SECTION 5.3.     Collection of Indebtedness and Suits for Enforcement by Indenture Trustee..................23
     SECTION 5.4.     Remedies...................................................................................25
     SECTION 5.5.     Optional Preservation of the Pledged Property..............................................26
     SECTION 5.6.     Priorities.................................................................................27
     SECTION 5.7.     Limitation of Suits........................................................................28
     SECTION 5.8.     Unconditional Rights of Noteholders To Receive Principal and Interest......................29
     SECTION 5.9.     Restoration of Rights and Remedies.........................................................29
     SECTION 5.10.    Rights and Remedies Cumulative.............................................................29
     SECTION 5.11.    Delay or Omission Not a Waiver.............................................................29
     SECTION 5.12.    Control by Noteholders.....................................................................29
     SECTION 5.13.    Waiver of Past Defaults....................................................................30
     SECTION 5.14.    Undertaking for Costs......................................................................30
     SECTION 5.15.    Waiver of Stay or Extension Laws...........................................................31
     SECTION 5.16.    Action on Notes............................................................................31
     SECTION 5.17.    Performance and Enforcement of Certain Obligations.........................................31
     SECTION 5.18.    Subrogation................................................................................31
     SECTION 5.19.    Preference Claims; Direction of Proceedings................................................32

ARTICLE VI         The Indenture Trustee.........................................................................33

     SECTION 6.1.     Duties of Indenture Trustee................................................................33
     SECTION 6.2.     Rights of Indenture Trustee................................................................36
     SECTION 6.3.     Individual Rights of Indenture Trustee.....................................................37
     SECTION 6.4.     Indenture Trustee's Disclaimer.............................................................37
     SECTION 6.5.     Notice of Defaults.........................................................................38
     SECTION 6.6.     Reports by Indenture Trustee to Holders....................................................38
     SECTION 6.7.     Compensation and Indemnity.................................................................38
     SECTION 6.8.     Replacement of Indenture Trustee...........................................................39
     SECTION 6.9.     Successor Indenture Trustee by Merger......................................................40
     SECTION 6.10.    Appointment of Co-Trustee or Separate Trustee..............................................41
     SECTION 6.11.    Eligibility................................................................................42
     SECTION 6.12.    Preferential Collection of Claims Against Issuer...........................................42
     SECTION 6.13.    Representations and Warranties of the Indenture Trustee....................................43
     SECTION 6.14.    Valid and Binding Indenture................................................................43
     SECTION 6.15.    Waiver of Setoffs..........................................................................43

                                       ii

     SECTION 6.16.    Control by the Controlling Party...........................................................43

ARTICLE VII        Noteholders' Lists and Communications.........................................................43

     SECTION 7.1.     Issuer To Furnish To Indenture Trustee Names and Addresses of Noteholders..................43
     SECTION 7.2.     Preservation of Information; Communications to Noteholders.................................44
     SECTION 7.3.     Reports by Issuer..........................................................................44
     SECTION 7.4.     Reports by Indenture Trustee...............................................................44

ARTICLE VIII       Collection of Money;  Releases................................................................45

     SECTION 8.1.     Collection of Money........................................................................45
     SECTION 8.2.     Release of Pledged Property................................................................45
     SECTION 8.3.     Opinion of Counsel.........................................................................46

ARTICLE IX         Supplemental Indentures.......................................................................46

     SECTION 9.1.     Supplemental Indentures Without Consent of Noteholders.....................................46
     SECTION 9.2.     Supplemental Indentures with Consent of Noteholders........................................47
     SECTION 9.3.     Execution of Supplemental Indentures.......................................................49
     SECTION 9.4.     Effect of Supplemental Indenture...........................................................49
     SECTION 9.5.     Conformity With Trust Indenture Act........................................................49
     SECTION 9.6.     Reference in Notes to Supplemental Indentures..............................................49

ARTICLE X          Redemption of Notes...........................................................................49

     SECTION 10.1.    Redemption.................................................................................49
     SECTION 10.2.    Form of Redemption Notice..................................................................50
     SECTION 10.3.    Notes Payable on Redemption Date...........................................................50

ARTICLE XI         Miscellaneous.................................................................................51

     SECTION 11.1.    Compliance Certificates and Opinions, etc..................................................51
     SECTION 11.2.    Form of Documents Delivered to Indenture Trustee...........................................52
     SECTION 11.3.    Acts of Noteholders........................................................................53
     SECTION 11.4.    Notices, etc., to Indenture Trustee, Issuer and Rating Agencies............................54
     SECTION 11.5.    Notices to Noteholders; Waiver.............................................................55
     SECTION 11.6.    Conflict with Trust Indenture Act..........................................................56
     SECTION 11.7.    Effect of Headings and Table of Contents...................................................56
     SECTION 11.8.    Successors and Assigns.....................................................................56
     SECTION 11.9.    Separability...............................................................................56
     SECTION 11.10.   Benefits of Indenture......................................................................56
     SECTION 11.11.   Legal Holidays.............................................................................56
     SECTION 11.12.   GOVERNING LAW..............................................................................56
     SECTION 11.13.   Counterparts...............................................................................56
     SECTION 11.14.   Recording of Indenture.....................................................................57
     SECTION 11.15.   Trust Obligation...........................................................................57
     SECTION 11.16.   No Petition................................................................................58

                                      iii

     SECTION 11.17.   Inspection.................................................................................58
     SECTION 11.18.   Rights of Note Insurer as Controlling Party................................................58
     SECTION 11.19.   Effect of Policy Expiration Date...........................................................58

                                       iv

                              ANNEXES AND EXHIBITS

Annex      A      Defined Terms

Exhibit    A-1    Form of Class A-1 Note
Exhibit    A-2    Form of Class A-2 Note
Exhibit    A-3    Form of Class A-3 Note
Exhibit    A-4    Form of Class A-4 Note
Exhibit    B      Form of Depository Agreement
Exhibit    C      Form of Certificate as to ERISA Matters

                                       v

              LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2004-C

                  Reconciliation and Tie between the Indenture
                      dated as of December 1, 2004 and the
                     Trust Indenture Act of 1939, as amended

                 RECONCILIATION AND TIE BETWEEN TRUST INDENTURE
                    ACT OF 1939 AND INDENTURE PROVISIONS(1)*

   Trust Indenture Act Section                     Indenture Section
   ---------------------------                     -----------------
           ss. 310(a)(1)                                ss. 6.11
              (a)(2)                                      6.11
              (a)(3)                                      6.10
              (a)(4)                                Not Applicable
               (b) 6.11 (c)                         Not Applicable
              311(a)                                      6.12
               (b)                                        6.12
              312(a)                                      7.1
               (b)                                        7.2
               (c)                                        7.2
              313(a)                                      7.4
               (b)                                        7.4
               (c)                                      7.3, 7.4
               (d)                                        7.3
            314(a)(4)                                     3.9
               (b)                                  Not Applicable
               (c)                                    2.11, 8.2
               (d)                                    2.11, 8.2
               (e)                                       11.1
              315(a)                                      6.1
               (b)                                        6.5
               (c)                                        6.1
               (d)                                        6.1
               (e)                                        5.14
      316(a) (last sentence)                        Not Applicable
              (a)(1)(A)                                   5.3
              (a)(1)(B)                                   5.13
              317(a)(1)                                   5.4
              (a)(2)                                     5.3(e)
               (b)                                        3.3
-------------
(1)  This reconciliation and tie shall not, for any purpose, be deemed to be
     part of the within indenture.

                                       vi

               318(a)                              Not Applicable
                (b)                                Not Applicable
                (c)                                Not Applicable

                                      vii

     INDENTURE dated as of December 1, 2004, between LONG BEACH ACCEPTANCE AUTO
RECEIVABLES TRUST 2004-C, a Delaware statutory trust (the "Issuer"), and
JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, a banking association organized under
the laws of the United States, as indenture trustee (the "Indenture Trustee").

     Each party agrees as follows for the benefit of the other party and for the
equal and ratable benefit of the Holders of the Issuer's 2.390% Asset-Backed
Notes, Class A-1, 3.040% Asset-Backed Notes, Class A-2, 3.402% Asset-Backed
Notes, Class A-3, and 3.777% Asset-Backed Notes, Class A-4, (collectively the
"Class A Notes" or the "Notes") and 6.00% Asset-Backed Certificates (the "Class
C Certificate").

     As security for the payment and performance by the Issuer of its
obligations under this Indenture, the Notes and the Class C Certificate, the
Issuer has agreed to assign the Pledged Property (as defined below) as
collateral to the Indenture Trustee for the benefit of the Noteholders and the
Class C Certificateholder.

     Financial Security Assurance, Inc. (the "Note Insurer"), for the benefit of
the Class A Noteholders, has issued and delivered a financial guaranty insurance
policy, dated the Closing Date (with endorsements, the "Policy"), pursuant to
which the Note Insurer guarantees Scheduled Payments, as defined in the
Insurance Agreement.

     As an inducement to the Note Insurer to issue and deliver the Policy, the
Issuer and the Note Insurer have executed and delivered the Insurance and
Indemnity Agreement, dated as of December 1, 2004 (as amended from time to time,
the "Insurance Agreement"), among the Note Insurer, the Issuer, Long Beach
Acceptance Corp., a Delaware corporation, ("LBAC") and Long Beach Acceptance
Receivables Corp., a Delaware corporation, as transferor, (the "Transferor").

     As an additional inducement to the Note Insurer to issue the Policy, and as
security for the performance by the Issuer of its obligations under this
Indenture and as security for the performance by the Issuer of its obligations
under this Indenture, the Issuer has agreed to assign the Pledged Property (as
defined below) as collateral to the Indenture Trustee for the benefit of the
Noteholders, the Class C Certificateholder and the Note Insurer, as their
respective interests may appear.

                                 GRANTING CLAUSE

          The Issuer hereby Grants to the Indenture Trustee for the benefit of
the Noteholders, the Class C Certificateholder and the Note Insurer all of the
Issuer's right, title and interest in and to the following property (the
"Pledged Property") now owned or hereafter acquired:

     (i)  the Initial Receivables listed in Schedule A hereto and the Subsequent
          Receivables listed in Schedule A to the related Transfer Agreement,
          all moneys received on the Receivables after the applicable Cutoff
          Date and, with respect to the Initial Receivables and the Subsequent
          Receivables which are Precomputed Receivables, the related Payahead
          Amount, and all Liquidation Proceeds and Recoveries received with
          respect to such Receivables;

     (ii) the security interests in the related Financed Vehicles granted by the
          related Obligors pursuant to the Receivables, and any other interest
          of the Transferor in such Financed Vehicles, including the
          certificates of title and any other evidence of ownership with respect
          to such Financed Vehicles;

    (iii) any proceeds from claims on any physical damage, credit life and
          credit accident and health insurance policies or certificates or the
          VSI Policy, if any, relating to the related Financed Vehicles or the
          related Obligors, including any rebates and premiums;

     (iv) property (including the right to receive future Liquidation Proceeds)
          that secures a Receivable, and that has been acquired by or on behalf
          of the Issuer pursuant to the liquidation of such Receivable;

     (v)  the Purchase Agreement, each Transfer Agreement and the Sale and
          Servicing Agreement, including a direct right to cause LBAC to
          purchase Receivables from the Trust upon the occurrence of a breach of
          any of the representations and warranties contained in Section 3.03(b)
          of the Purchase Agreement or Section 4 of the related Transfer
          Agreement, or the failure of LBAC to timely comply with its
          obligations pursuant to Section 5.05 of the Purchase Agreement;

     (vi) refunds for the costs of extended service contracts with respect to
          the related Financed Vehicles, refunds of unearned premiums with
          respect to credit life and credit accident and health insurance
          policies or certificates covering a related Obligor or Financed
          Vehicle or his or her obligations with respect to such Financed
          Vehicle and any recourse to Dealers for any of the foregoing;

    (vii) the Legal Files and the Receivable Files related to each Receivable
          and any and all other documents that LBAC keeps on file in accordance
          with its customary procedures relating to the Receivables, the related
          Obligors or the related Financed Vehicles;

   (viii) all amounts and property from time to time held in or credited to
          the Collection Account, the Pre-Funding Account, the Note Account and
          the Supplemental Enhancement Account;

                                       2

     (ix) all amounts and property from time to time held in or credited to the
          Lock-Box Account, to the extent such amounts and property relate to
          the Receivables;

     (x)  any proceeds from recourse against Dealers (other than any Chargeback
          Obligations), including any Dealer Title Guaranties with respect to
          the sale of the Receivables; and

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

The foregoing Grant is made in trust to the Indenture Trustee for the benefit of
the Noteholders, the Class C Certificateholder and the Note Insurer. The
Indenture Trustee hereby acknowledges such Grant, accepts the trusts under this
Indenture in accordance with the provisions of this Indenture and agrees to
perform its duties required in this Indenture to the end that the interests of
such parties, recognizing the priorities of their respective interests may be
adequately and effectively protected.

                                   ARTICLE I

                                   Definitions

          SECTION 1.1. Definitions. Whenever used in this Indenture, capitalized
terms used and not otherwise defined herein shall have the meanings set forth in
Annex A attached hereto.

          SECTION 1.2. Incorporation by Reference of Trust Indenture Act.
Whenever this Indenture refers to a provision of the Trust Indenture Act of
1939, as amended (the "TIA"), such provision is incorporated by reference in and
made a part of this Indenture. The following TIA terms used in this Indenture
have the following meanings:

          "Commission" means the Securities and Exchange Commission.

          "indenture securities" means the Notes.

          "indenture security holder" means a Noteholder.

          "indenture to be qualified" means this Indenture.

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

          "obligor" on the indenture securities means the Issuer.

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

          SECTION 1.3. Rules of Construction. Unless the context otherwise
requires:

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

                                       3

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

          (iii) "or" is not exclusive;

          (iv) "including" means including without limitation; and

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

                                   ARTICLE II

                                    The Notes

          SECTION 2.1. Form. The Class A-1 Notes, the Class A-2 Notes, the Class
A-3 Notes and the Class A-4 Notes shall be in substantially the forms set forth
in Exhibits A-1, A-2, A-3 and A-4 respectively, with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may,
consistently herewith, be determined by the officers executing such Notes, as
evidenced by their execution of the Notes. Any portion of the text of any Note
may be set forth on the reverse thereof, with an appropriate reference thereto
on the face of the Note.

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

          Each Note shall be dated the date of its authentication. The terms of
the Notes set forth in Exhibits A-1, A-2, A-3 and A-4 respectively, are part of
the terms of this Indenture.

          SECTION 2.2. Execution, Authentication and Delivery. The Notes shall
be executed on behalf of the Issuer by an authorized representative of the Owner
Trustee. The signature of any such authorized representative on the Notes may be
manual or facsimile.

          Notes bearing the manual or facsimile signature of individuals who
were at any time authorized representatives of the Owner Trustee shall bind the
Issuer, notwithstanding that such individuals or any of them have ceased to hold
such offices prior to the authentication and delivery of such Notes or did not
hold such offices at the date of such Notes.

          The Indenture Trustee shall, upon receipt of the Policy and the Issuer
Order, authenticate and deliver (i) Class A-1 Notes for original issue in an
aggregate principal amount of $63,000,000, (ii) Class A-2 Notes for original
issue in an aggregate principal amount of $106,000,000, (iii) Class A-3 Notes
for original issue in an aggregate principal amount of $74,000,000 and (iv)
Class A-4 Notes for original issue in an aggregate principal amount of
$107,000,000. The Notes outstanding at any time may not exceed such amounts
except as provided in Section 2.5.

                                       4

          The Notes shall be issuable as registered Notes. The Class A Notes
will be issuable in minimum denominations of one hundred thousand dollars
($100,000) and integral multiples of one thousand dollars ($1,000) in excess
thereof.

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

          SECTION 2.3. Temporary Notes. Pending the preparation of Definitive
Notes, the Issuer may execute and, upon receipt of an Issuer Order, the
Indenture Trustee shall authenticate and deliver, temporary Notes which are
printed, lithographed, typewritten, mimeographed or otherwise produced, of the
tenor of the Definitive Notes in lieu of which they are issued and with such
variations not inconsistent with the terms of this Indenture as the officers
executing such Notes may determine, as evidenced by their execution of such
Notes.

          If temporary Notes are issued, the Issuer will cause Definitive Notes
to be prepared without unreasonable delay. After the preparation of Definitive
Notes, the temporary Notes shall be exchangeable for Definitive Notes upon
surrender of the temporary Notes at the office or agency of the Issuer to be
maintained as provided in Section 3.2, without charge to the Noteholder. Upon
surrender for cancellation of any one or more temporary Notes, the Issuer shall
execute and the Indenture Trustee shall authenticate and deliver in exchange
therefor a like principal amount of Definitive Notes of authorized
denominations. Until so exchanged, the temporary Notes shall in all respects be
entitled to the same benefits under this Indenture as Definitive Notes.

          SECTION 2.4. Registration; Registration of Transfer and Exchange. (a)
The Issuer shall cause to be kept a register (the "Note Register") in which,
subject to such reasonable regulations as it may prescribe, the Issuer shall
provide for the registration of Notes and the registration of transfers and
exchanges of Notes. The Indenture Trustee shall be "Note Registrar" for the
purpose of registering Notes and transfers and exchanges of Notes as herein
provided. Upon any resignation of any Note Registrar, the Issuer shall promptly
appoint a successor or, if it elects not to make such an appointment, assume the
duties of Note Registrar.

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

          No transfer of a Note shall be made to any Person unless the Indenture
Trustee has received a certificate (substantially in the form of Exhibit C
hereto) from such transferee to the effect that such transferee (a) is not a
Plan, and is not acting on behalf of or investing the

                                       5

assets of a Plan or (b) a Department of Labor prohibited transaction class
exemption applies to the transferee's acquisition and continued holding of such
Note. The preparation and delivery of the certificate referred to above shall
not be an expense of the Indenture Trustee or the Transferor but shall be borne
by the transferee. Each transferee of a beneficial ownership interest in a
book-entry Note shall be deemed to make one of the foregoing representations and
shall not be required to deliver the certificate referred to above.

          (b) With respect to the Notes held in book-entry form, the Notes shall
be registered in the name of a nominee designated by the Clearing Agency (and
may be aggregated as to denominations with other Notes held by the Clearing
Agency). With respect to Notes held in book-entry form:

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

               (2) the rights of Note Owners will be exercised only through the
          Clearing Agency and will be limited to those established by law and
          agreements between such Note Owners and the Clearing Agency and/or the
          Clearing Agency Participants pursuant to the Depository Agreement; and

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

          Neither the Indenture Trustee nor the Note Registrar shall have any
responsibility to monitor or restrict the transfer of beneficial ownership in
any Note an interest in which is transferable through the facilities of the
Clearing Agency.

          If (i)(A) the Issuer advises the Indenture Trustee in writing that the
Clearing Agency is no longer willing or able to properly discharge its
responsibilities with respect to the Notes as described in the Depository
Agreement and (B) the Issuer is unable to locate a qualified successor with
respect to which (unless a Note Insurer Default has occurred and is continuing)
the Note Insurer has provided its prior written consent, (ii) the Issuer at its
option advises the Indenture Trustee in writing that it elects to terminate the
book-entry system through the Clearing Agency, or (iii) after the occurrence of
an Event of Default, the Note Insurer (or, if a Note Insurer Default has
occurred and is continuing, the Majorityholders) advise the Indenture Trustee
and the Clearing Agency through the Clearing Agency Participants in writing that
the continuation of a book-entry system through the Clearing Agency with respect
to such class is no longer in the best interests of the related Note Owners,
then the Indenture Trustee shall notify all such Note Owners, through the
Clearing Agency, and the Note Insurer of the occurrence of any

                                       6

such event and of the availability of Definitive Notes to such Note Owners
requesting the same. Upon surrender to the Indenture Trustee of the related
Notes by the Clearing Agency accompanied by registration instructions from the
Clearing Agency, the Issuer shall issue definitive Notes and deliver such
definitive Notes in accordance with the instructions of the Clearing Agency.
None of the Issuer, the Note Registrar nor the Indenture Trustee shall be liable
for any delay in delivery of such instructions and may conclusively rely on, and
shall be protected in relying on, such instructions. Upon the issuance of
Definitive Notes, the Indenture Trustee shall recognize the Holders of the
Definitive Notes as Noteholders hereunder. The Indenture Trustee shall not be
liable if the Transferor is unable to locate a qualified successor Clearing
Agency.

          (c) Upon surrender for registration of transfer of any Note at the
Corporate Trust Office, the Indenture Trustee shall have the Issuer execute, and
the Indenture Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Notes in authorized
denominations of a like aggregate principal amount.

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

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

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

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

          SECTION 2.5. Mutilated, Destroyed, Lost or Stolen Notes. If (a) any
mutilated Note shall be surrendered to the Note Registrar, or if the Note
Registrar shall receive evidence to its satisfaction of the destruction, loss,
or theft of any Note and (b) there shall be delivered to the Note Registrar, the
Indenture Trustee and the Note Insurer such security or indemnity as may be
required by them to save each of them harmless, then in the absence of notice
that such Note shall have been acquired by a bona fide purchaser, the Issuer
shall execute, and the Indenture Trustee shall authenticate and deliver, in
exchange for or in lieu of any such

                                       7

mutilated, destroyed, lost or stolen Note, a new Note of like tenor and
denomination. In connection with the issuance of any new Note under this Section
2.5, the Indenture Trustee and the Note Registrar may require the payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection therewith. Any duplicate Note issued pursuant to this Section 2.5
shall constitute valid obligations of the Issuer, evidencing the same debt and
entitled to the same benefits of this Indenture, as if originally issued,
whether or not the lost, stolen, or destroyed Note shall be found at any time.

          SECTION 2.6. Persons Deemed Owners. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Indenture Trustee, the
Note Insurer and any agent of Issuer, the Indenture Trustee and the Note Insurer
may treat the Person in whose name any Note is registered (as of the Record
Date) as the owner of such Note for the purpose of receiving payments of
principal of and interest, if any, on such Note and for all other purposes
whatsoever, whether or not such Note be overdue, and none of the Issuer, the
Note Insurer, the Indenture Trustee nor any agent of the Issuer or the Indenture
Trustee shall be affected by notice to the contrary.

          SECTION 2.7. Access to List of Noteholders' Names and Addresses. The
Indenture Trustee shall furnish or cause to be furnished to the Servicer or the
Note Insurer, at the expense of the Issuer, within 15 days after receipt by the
Indenture Trustee of a request therefor from the Servicer or the Note Insurer,
as the case may be, in writing, a list of the names and addresses of the
Noteholders as of the most recent Record Date. If three or more Class A
Noteholders, or one or more Class A Noteholders evidencing not less than 25% of
the Class A Note Balance apply in writing to the Indenture Trustee, and such
application states that the applicants desire to communicate with other
Noteholders with respect to their rights under this Indenture or under the Notes
and such application shall be accompanied by a copy of the communication that
such applicants propose to transmit, then the Indenture Trustee shall, within
five Business Days after the receipt for such application, afford such
applicants access during normal business hours to the current list of
Noteholders. Each Holder, by receiving and holding a Note, shall be deemed to
have agreed to hold none of the Issuer, the Servicer, the Note Insurer, the Note
Registrar or the Indenture Trustee accountable by reason of the disclosure of
its name and address, regardless of the source from which such information was
derived.

          SECTION 2.8. Maintenance of Office or Agency. The Indenture Trustee
shall maintain in the Borough of Manhattan, the City of New York, an office or
offices or agency or agencies where Notes may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Indenture
Trustee in respect of the Notes and this Indenture may be served. The Indenture
Trustee initially designates its office located at 4 New York Plaza, 6th Floor,
New York, New York 10004, as its office for such purposes. The Indenture Trustee
shall give prompt written notice to the Issuer and to Noteholders of any change
in the location of the Note Register or any such office or agency.

          SECTION 2.9. Payment of Principal and Interest; Defaulted Interest.

          (a) The Notes shall accrue interest as provided in the forms of the
Notes set forth in Exhibits A-1, A-2, A-3 and A-4, respectively, and such
interest shall be due and payable on each Payment Date, as specified therein.
Any installment of interest or principal, if any, payable on any Note which is
punctually paid or duly provided for by the Issuer on the

                                       8

applicable Payment Date shall be paid as set forth in Section 5.6 of the Sale
and Servicing Agreement.

          (b) The principal of each Note shall be payable in installments on
each Payment Date as provided in the forms of the Notes. Notwithstanding the
foregoing, the entire unpaid Note Balance of each Class of Notes shall be due
and payable, if not previously paid, on the date on which an Event of Default
shall have occurred and be continuing, if the Controlling Party has declared the
Notes to be immediately due and payable in the manner provided in Section 5.2.
In such an event, all principal payments on each Class of Notes shall be made
pro rata to the Noteholders of each such Class entitled thereto. Upon written
notice from the Issuer, the Indenture Trustee shall notify the Person in whose
name a Note is registered at the close of business on the Record Date preceding
the Payment Date on which the Issuer expects that the final installment of
principal of and interest on such Note will be paid. Such notice shall be mailed
or transmitted by facsimile prior to such final Payment Date and shall specify
that such final installment will be payable only upon presentation and surrender
of such Note and shall specify the place where such Note may be presented and
surrendered for payment of such installment. Notices in connection with
redemptions of Notes shall be mailed to Noteholders as provided in Section 10.2.

          (c) If the Issuer defaults in a payment of interest on the Notes, and
such default is waived by the Controlling Party, the Issuer shall pay the Class
A-1 Interest Carryover Shortfall, the Class A-2 Interest Carryover Shortfall,
the Class A-3 Interest Carryover Shortfall or the Class A-4 Interest Carryover
Shortfall to the related Noteholders, as applicable, on the immediately
following Payment Date.

          (d) Promptly following the date on which all principal of and interest
on the Class A Notes has been paid in full and the Class A Notes have been
surrendered to the Indenture Trustee, the Indenture Trustee shall, if the Note
Insurer has paid any amount in respect of the Class A Notes under the Policy or
otherwise which has not been reimbursed to it, deliver such surrendered Class A
Notes to the Note Insurer.

          SECTION 2.10. Cancellation. Subject to Section 2.9(d), all Notes
surrendered for payment, registration of transfer, exchange or redemption shall,
if surrendered to any Person other than the Indenture Trustee, be delivered to
the Indenture Trustee and shall be promptly canceled by the Indenture Trustee.
Subject to Section 2.9(d), the Issuer may at any time deliver to the Indenture
Trustee for cancellation any Notes previously authenticated and delivered
hereunder which the Issuer may have acquired in any manner whatsoever, and all
Notes so delivered shall be promptly canceled by the Indenture Trustee. No Notes
shall be authenticated in lieu of or in exchange for any Notes canceled as
provided in this Section, except as expressly permitted by this Indenture.
Subject to Section 2.9(d), all canceled Notes may be held or disposed of by the
Indenture Trustee in accordance with its standard retention or disposal policy
as in effect at the time unless the Issuer shall timely direct by an Issuer
Order that such Notes be destroyed or returned to it; provided that such Notes
have not been previously disposed of by the Indenture Trustee prior to its
receipt of such Issuer Order.

          SECTION 2.11. Release of Pledged Property. The Indenture Trustee
shall, on or after the Termination Date, release and cause the Trust Collateral
Agent to release any remaining portion of the Pledged Property from the lien
created by this Indenture and deposit in

                                       9

the Collection Account any funds then on deposit in any of the other Accounts.
The Indenture Trustee shall release property from the lien created by this
Indenture pursuant to this Section 2.11 only upon receipt of an Issuer Request
and, if required by the TIA, Independent Certificates in accordance with Section
314(c) and 314(d)(1) of the TIA.

                                  ARTICLE III

                                    Covenants

          SECTION 3.1. Payment of Principal and Interest. The Issuer will duly
and punctually pay the principal of and interest on the Notes and the Class C
Certificate in accordance with the terms of the Notes, the Class C Certificate,
the Trust Agreement and this Indenture. Without limiting the foregoing, the
Issuer will cause to be distributed on each Payment Date (a) all amounts on
deposit in the Note Account deposited therein pursuant to the Sale and Servicing
Agreement (i) for the benefit of the Class A-1 Notes, to the Class A-1
Noteholders, (ii) for the benefit of the Class A-2 Notes, to the Class A-2
Noteholders, (iii) for the benefit of the Class A-3 Notes, to the Class A-3
Noteholders, (iv) for the benefit of the Class A-4 Notes, to the Class A-4
Noteholders and (b) all amounts on deposit in the Note Account for the benefit
of the Class C Certificate, including all amounts released or withdrawn from the
Supplemental Enhancement Account pursuant to the Sale and Servicing Agreement to
the Class C Certificate, or once the Class C Certificate Balance is reduced to
zero and all interest and other amounts due and payable on the Class C
Certificate have been paid in full, to the Class R Certificateholder. Amounts
properly withheld under the Code by any Person from a payment to any Noteholder
or the Class C Certificateholder of interest and/or principal shall be
considered as having been paid by the Issuer to such Noteholder or Class C
Certificateholder for all purposes of this Indenture.

          SECTION 3.2. Maintenance of Office or Agency. The Issuer will maintain
in the Borough of Manhattan, the City of New York, an office or agency where
Notes may be surrendered for registration of transfer or exchange, and where
notices and demands to or upon the Issuer in respect of the Notes and this
Indenture may be served. The Issuer hereby initially appoints the Indenture
Trustee to serve as its agent for the foregoing purposes. The Issuer will give
prompt written notice to the Indenture Trustee of the location, and of any
change in the location, of any such office or agency. If at any time the Issuer
shall fail to maintain any such office or agency or shall fail to furnish the
Indenture Trustee with the address thereof, such surrenders, notices and demands
may be made or served at the Corporate Trust Office, and the Issuer hereby
appoints the Indenture Trustee as its agent to receive all such surrenders,
notices and demands.

          SECTION 3.3. Money for Payments to be Held in Trust. On or before each
Payment Date and Redemption Date, the Issuer shall deposit or cause to be
deposited in the Note Account from the Collection Account an aggregate sum
sufficient to pay the amounts then becoming due under the Notes and the Class C
Certificate, such sum to be held in trust for the benefit of the Persons
entitled thereto and (unless the Note Paying Agent is the Indenture Trustee)
shall promptly notify the Indenture Trustee of its action or failure so to act.

          The Issuer will cause each Note Paying Agent other than the Indenture
Trustee to execute and deliver to the Indenture Trustee and the Note Insurer an
instrument in which such

                                       10

Note Paying Agent shall agree with the Indenture Trustee (and if the Indenture
Trustee acts as Note Paying Agent, it hereby so agrees), subject to the
provisions of this Section, that such Note Paying Agent will:

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

          (ii) give the Indenture Trustee notice of any default by the Issuer
     (or any other obligor upon the Notes) or the Class C Certificate of which
     it has actual knowledge in the making of any payment required to be made
     with respect to the Notes or the Class C Certificate;

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

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

          (v) comply with all requirements of the Code with respect to the
     withholding from any payments made by it on any Notes or the Class C
     Certificate of any applicable withholding taxes imposed thereon and with
     respect to any applicable reporting requirements in connection therewith.

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

          Subject to applicable laws with respect to the escheat of funds, any
money held by the Indenture Trustee or any Note Paying Agent in trust for the
payment of any amount due with respect to any Note and remaining unclaimed for
two years after such amount has become due and payable shall be discharged from
such trust and be paid to the Issuer on Issuer Request with the consent of the
Note Insurer (unless a Note Insurer Default shall have occurred and be
continuing) and shall be deposited by the Indenture Trustee in the Collection
Account; and the Holder of such Note shall thereafter, as an unsecured general
creditor, look only to the Issuer for payment thereof (but only to the extent of
the amounts so paid to the Issuer), and all liability of the Indenture Trustee
or such Note Paying Agent with respect to such trust money shall thereupon
cease; provided, however, that if such money or any portion thereof had been
previously deposited by the Note Insurer or the Trust Collateral Agent with the
Indenture Trustee for the payment of principal or interest on the Class A Notes
or the Class C Certificate, to the

                                       11

extent any amounts are owing to the Note Insurer, such amounts shall be paid
promptly to the Note Insurer upon the Indenture Trustee's receipt of a written
request by the Note Insurer to such effect; and provided, further, that the
Indenture Trustee or such Note Paying Agent, before being required to make any
such repayment, shall at the expense of the Issuer cause to be published once,
in a newspaper published in the English language, customarily published on each
Business Day and of general circulation in New York, New York, notice that such
money remains unclaimed and that, after a date specified therein, which shall
not be less than thirty (30) days from the date of such publication, any
unclaimed balance of such money then remaining will be repaid to the Issuer. The
Indenture Trustee shall also adopt and employ, at the expense of the Issuer, any
other reasonable means of notification of such repayment (including mailing
notice of such repayment to Holders whose Notes have been called but have not
been surrendered for redemption or whose right to or interest in moneys due and
payable but not claimed is determinable from the records of the Indenture
Trustee or of any Note Paying Agent, at the last address of record for each such
Holder).

          SECTION 3.4. Existence. Except as otherwise permitted by the
provisions of Section 3.10, the Issuer will keep in full effect its existence,
rights and franchises as a statutory trust under the laws of the State of
Delaware (unless it becomes, or any successor Issuer hereunder is or becomes,
organized under the laws of any other state or of the United States of America,
in which case the Issuer will keep in full effect its existence, rights and
franchises under the laws of such other jurisdiction) and will obtain and
preserve its qualification to do business in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Notes, the Class C Certificate, the
Pledged Property and each other instrument or agreement included in the Trust
Assets.

          SECTION 3.5. Protection of Pledged Property. The Issuer intends the
security interest Granted pursuant to this Indenture in favor of the Indenture
Trustee for the benefit of the Note Insurer, the Class C Certificateholder and
the Noteholders to be prior to all other liens in respect of the Trust Assets,
and the Issuer shall take all actions necessary to obtain and maintain, in favor
of the Indenture Trustee, for the benefit of the Note Insurer, the Class C
Certificateholder and the Noteholders, a first lien on and a first priority,
perfected security interest in the Pledged Property. The Issuer will from time
to time prepare (or shall cause to be prepared), execute and deliver all such
supplements and amendments hereto and all such financing statements,
continuation statements, instruments of further assurance and other instruments,
and will take such other action necessary or advisable to:

          (i) provide further assurance with respect to the Grant and/or Grant
     more effectively all or any portion of the Pledged Property or maintain the
     Pledged Property free and clear of all prior liens;

          (ii) maintain or preserve the lien and security interest (and the
     priority thereof) in favor of the Indenture Trustee for the benefit of the
     Noteholders, the Class C Certificateholder and the Note Insurer created by
     this Indenture or carry out more effectively the purposes hereof;

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

                                       12

          (iv) enforce any of the Pledged Property;

          (v) preserve and defend title to the Pledged Property and the rights
     of the Indenture Trustee in such Pledged Property against the claims of all
     persons and parties; and

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

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

          SECTION 3.6. Opinions as to Pledged Property.

          (a) On the Closing Date, the Issuer shall furnish to the Indenture
Trustee and the Note Insurer an Opinion of Counsel either stating that, in the
opinion of such counsel, such action has been taken with respect to the
recording and filing of this Indenture, any indentures supplemental hereto, and
any other requisite documents, and with respect to the filing of any financing
statements and continuation statements, as are necessary to perfect and make
effective the first priority lien and security interest in favor of the
Indenture Trustee, for the benefit of the Noteholders, the Class C
Certificateholder and the Note Insurer, created by this Indenture and reciting
the details of such action, or stating that, in the opinion of such counsel, no
such action is necessary to make such lien and security interest effective.

          (b) Within 120 days after the beginning of each calendar year,
beginning with the calendar year beginning January 1, 2006, the Issuer shall
furnish to the Indenture Trustee and the Note Insurer an Opinion of Counsel
either stating that, in the opinion of such counsel, such action has been taken
with respect to the recording, filing, re-recording and refiling of this
Indenture, any indentures supplemental hereto and any other requisite documents
and with respect to the execution and filing of any financing statements and
continuation statements as are necessary to maintain the lien and security
interest created by this Indenture and reciting the details of such action or
stating that in the opinion of such counsel no such action is necessary to
maintain such lien and security interest. Such Opinion of Counsel shall also
describe the recording, filing, re-recording and refiling of this Indenture, any
indentures supplemental hereto and any other requisite documents and the
execution and filing of any financing statements and continuation statements
that will, in the opinion of such counsel, be required to maintain the lien and
security interest of this Indenture until January 30 in the following calendar
year.

          SECTION 3.7. Performance of Obligations; Servicing of Receivables. (a)
The Issuer will not take any action and will use its best efforts not to permit
any action to be taken by others that would release any Person from any of such
Person's material covenants or obligations under any instrument or agreement
included in the Pledged Property or that would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the
validity or effectiveness of, any such instrument or agreement, except as
ordered by any bankruptcy or other court or as expressly provided in this
Indenture, the Basic Documents or such other instrument or agreement.

                                       13

          (b) The Issuer may contract with other Persons acceptable to the Note
Insurer (so long as no Note Insurer Default shall have occurred and be
continuing) to assist it in performing its duties under this Indenture, and any
performance of such duties by a Person identified to the Indenture Trustee and
the Note Insurer in an Officer's Certificate of the Issuer shall be deemed to be
action taken by the Issuer. Initially, the Issuer has contracted with the
Servicer to assist the Issuer in performing its duties under this Indenture.

          (c) The Issuer will punctually perform and observe all of its
obligations and agreements contained in this Indenture, the Basic Documents and
in the instruments and agreements included in the Pledged Property, including
preparing (or causing to prepared) and filing (or causing to be filed) all UCC
financing statements and continuation statements required to be filed by the
terms of this Indenture and the Sale and Servicing Agreement in accordance with
and within the time periods provided for herein and therein. Except as otherwise
expressly provided therein, the Issuer shall not waive, amend, modify,
supplement or terminate any Basic Document or any provision thereof without the
consent of the Indenture Trustee or the Note Insurer (or if a Note Insurer
Default has occurred and is continuing, the Majorityholders).

          (d) If a responsible officer of the Owner Trustee shall have actual
knowledge of the occurrence of a Servicer Termination Event under the Sale and
Servicing Agreement, the Issuer shall promptly notify the Indenture Trustee, the
Note Insurer and the Rating Agencies thereof in accordance with Section 11.4,
and shall specify in such notice the action, if any, the Issuer is taking in
respect of such default. If a Servicer Termination Event shall arise from the
failure of the Servicer to perform any of its duties or obligations under the
Sale and Servicing Agreement with respect to the Receivables, the Issuer shall
take all reasonable steps available to it to remedy such failure.

          (e) The Issuer agrees that it will not waive timely performance or
observance by the Servicer or the Transferor of their respective duties under
the Basic Documents (x) without the prior consent of the Note Insurer (unless a
Note Insurer Default shall have occurred and be continuing) or (y) if the effect
thereof would adversely affect the Holders of the Notes or the Class C
Certificates.

          SECTION 3.8. Negative Covenants. So long as any Notes or the Class C
Certificate are outstanding, the Issuer shall not:

          (i) except as expressly permitted by this Indenture or the Basic
     Documents, sell, transfer, exchange or otherwise dispose of any of the
     properties or assets of the Issuer, including those included in the Pledged
     Property, unless directed to do so by the Controlling Party;

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

          (iii) (A) permit the validity or effectiveness of this Indenture to be
     impaired, or permit the lien in favor of the Indenture Trustee created by
     this Indenture to be

                                       14

     amended, hypothecated, subordinated, terminated or discharged, or permit
     any Person to be released from any covenants or obligations with respect to
     the Notes or the Class C Certificate under this Indenture except as may be
     expressly permitted hereby, (B) permit any lien, charge, excise, claim,
     security interest, mortgage or other encumbrance (other than the lien of
     this Indenture) to be created on or extend to or otherwise arise upon or
     burden the Pledged Property or any part thereof or any interest therein or
     the proceeds thereof (other than tax liens, mechanics' liens and other
     liens that arise by operation of law, in each case on a Financed Vehicle
     and arising solely as a result of an action or omission of the related
     Obligor), (C) permit the lien of this Indenture not to constitute a valid
     first priority (other than with respect to any such tax, mechanics' or
     other lien) security interest in the Pledged Property or (D) amend, modify
     or fail to comply with the provisions of the Basic Documents without the
     prior written consent of the Controlling Party;

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

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

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

          SECTION 3.9. Annual Statement as to Compliance. The Issuer will
deliver to the Indenture Trustee and the Note Insurer, within 120 days after the
end of each fiscal year of the Issuer (commencing with the fiscal year ended
December 31, 2005), and otherwise in compliance with the requirements of Section
314(a)(4) of the TIA, an Officer's Certificate stating, as to the Authorized
Officer signing such Officer's Certificate, that:

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

          (ii) to the best of such Authorized Officer's knowledge, based on such
     review, the Issuer has complied with all conditions and covenants under
     this Indenture throughout such year, or, if there has been a default in the
     compliance of any such condition or covenant, specifying each such default
     known to such Authorized Officer and the nature and status thereof.

          SECTION 3.10. Issuer May Consolidate, Etc. Only on Certain Terms. (a)
The Issuer shall not consolidate or merge with or into any other Person, unless:

          (i) the Person (if other than the Issuer) formed by or surviving such
     consolidation or merger shall be a Person organized and existing under the
     laws of the United States of America or any state and shall expressly
     assume, by an indenture supplemental hereto, executed and delivered to the
     Indenture Trustee, in form satisfactory to the Indenture Trustee and the
     Note Insurer (so long as no Note Insurer Default shall have occurred and be
     continuing), the due and punctual payment of the principal of and interest
     on all Notes and the Class C Certificate and the performance or observance
     of

                                       15

     every agreement and covenant of this Indenture on the part of the Issuer to
     be performed or observed, all as provided herein;

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

          (iii) the Rating Agency Condition shall have been satisfied with
     respect to such transaction;

          (iv) the Issuer shall have received an Opinion of Counsel (and shall
     have delivered copies thereof to the Indenture Trustee and the Note Insurer
     (so long as no Note Insurer Default shall have occurred and be continuing))
     to the effect that such transaction will not cause for federal income tax
     purposes (i) the Notes to cease to qualify as indebtedness or (ii) the
     Issuer to become an association, or publicly traded partnership, taxable as
     a corporation;

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

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

          (vii) so long as no Note Insurer Default shall have occurred and be
     continuing, the Issuer shall have given the Note Insurer written notice of
     such conveyance or transfer at least twenty (20) Business Days prior to the
     consummation of such action and shall have received the prior written
     approval of the Note Insurer of such conveyance or transfer and the Issuer
     or the Person (if other than the Issuer) formed by or surviving such
     conveyance or transfer has a net worth, immediately after such conveyance
     or transfer, that is (a) greater than zero and (b) not less than the net
     worth of the Issuer immediately prior to giving effect to such conveyance
     or transfer.

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

          (i) the Person that acquires by conveyance or transfer the properties
     and assets of the Issuer the conveyance or transfer of which is hereby
     restricted shall (A) be a United States citizen or a Person organized and
     existing under the laws of the United States of America or any state, (B)
     expressly assume, by an indenture supplemental hereto, executed and
     delivered to the Indenture Trustee, in form satisfactory to the Indenture
     Trustee, and the Note Insurer (so long as no Note Insurer Default shall
     have occurred and be continuing), the due and punctual payment of the
     principal of and interest on all Notes and the Class C Certificate and the
     performance or observance of every agreement and covenant of this Indenture
     and each of the Basic Documents on the part of the Issuer to be performed
     or observed, all as provided herein, (C) expressly agree by means of such
     supplemental indenture that all right, title and interest so conveyed or
     transferred shall be subject and subordinate to the rights of Holders of
     the Notes and the

                                       16

     Class C Certificateholder, and (D) unless otherwise provided in such
     supplemental indenture, expressly agree to indemnify, defend and hold
     harmless the Issuer against and from any loss, liability or expense arising
     under or related to this Indenture, the Notes and the Class C Certificate;

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

          (iii) the Rating Agency Condition shall have been satisfied with
     respect to such transaction;

          (iv) the Issuer shall have received an Opinion of Counsel (and shall
     have delivered copies thereof to the Indenture Trustee and the Note Insurer
     (so long as no Note Insurer Default shall have occurred and be continuing))
     to the effect that such transaction will not have any material adverse tax
     consequence to the Trust, the Note Insurer, any Noteholder or any
     Certificateholder;

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

          (vi) the Issuer shall have delivered to the Indenture Trustee and the
     Note Insurer an Officers' Certificate and an Opinion of Counsel each
     stating that such conveyance or transfer and such supplemental indenture
     comply with this Article III and that all conditions precedent herein
     provided for relating to such transaction have been complied with; and

          (vii) so long as no Note Insurer Default shall have occurred and be
     continuing, the Issuer shall have given the Note Insurer written notice of
     such conveyance or transfer at least twenty (20) Business Days prior to the
     consummation of such action and shall have received the prior written
     approval of the Note Insurer of such consolidation or merger and the Issuer
     or the Person (if other than the Issuer) formed by or surviving such
     consolidation or merger has a net worth, immediately after such
     consolidation or merger, that is (a) greater than zero and (b) not less
     than the net worth of the Issuer immediately prior to giving effect to such
     consolidation or merger.

          SECTION 3.11. Successor or Transferee. (a) Upon any consolidation or
merger of the Issuer in accordance with Section 3.10(a), the Person formed by or
surviving such consolidation or merger (if other than the Issuer) shall succeed
to, and be substituted for, and may exercise every right and power of, the
Issuer under this Indenture with the same effect as if such Person had been
named as the Issuer herein.

          (b) Upon a conveyance or transfer of all the assets and properties of
the Issuer pursuant to Section 3.10 (b), Long Beach Acceptance Auto Receivables
Trust 2004-C will be released from every covenant and agreement of this
Indenture to be observed or performed on the part of the Issuer with respect to
the Notes or the Class C Certificate, as the case may be, immediately upon the
delivery of written notice to the Indenture Trustee stating that Long Beach
Acceptance Auto Receivables Trust 2004-C is to be so released.

                                       17

          SECTION 3.12. No Other Business. The Issuer shall not engage in any
business other than financing, purchasing, owning, selling and managing the
Receivables in the manner contemplated by this Indenture and the Basic Documents
and activities incidental thereto. After the Funding Period, the Issuer shall
not fund the acquisition of any additional Receivables.

          SECTION 3.13. No Borrowing. The Issuer shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
Indebtedness except for (i) the Notes, (ii) obligations owing from time to time
to the Note Insurer under the Insurance Agreement and (iii) any other
Indebtedness permitted by or arising under the Basic Documents. The proceeds of
the Notes and the Class C Certificate shall be used exclusively to fund the
Issuer's acquisition of the Receivables and the other assets specified in the
Sale and Servicing Agreement, to fund the Pre-Funding Account, the Spread
Account and the Supplemental Enhancement Account and to pay the Issuer's
organizational, transactional and start-up expenses.

          SECTION 3.14. Servicer's Obligations. The Issuer shall cause the
Servicer to comply with Sections 4.9, 4.10, 4.11 and 5.7 of the Sale and
Servicing Agreement.

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

          SECTION 3.16. Capital Expenditures. The Issuer shall not make any
expenditure (by long-term or operating lease or otherwise) for capital assets
(either realty or personalty).

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

          SECTION 3.18. Restricted Payments. The Issuer shall not, directly or
indirectly, (i) pay any dividend or make any payment (by reduction of capital or
otherwise), whether in cash, property, securities or a combination thereof, to
the Owner Trustee or any owner of a beneficial interest in the Issuer or
otherwise with respect to any ownership or equity interest or security in or of
the Issuer or to the Servicer, (ii) redeem, purchase, retire or otherwise
acquire for value any such ownership or equity interest or security or (iii) set
aside or otherwise segregate any amounts for any such purpose; provided,
however, that the Issuer may make, or cause to be made, payments to the
Servicer, the Owner Trustee, the Trust Collateral Agent, the Back-up Servicer,
the Custodian, the Indenture Trustee, the Note Insurer, the Noteholders and the
Certificateholders as permitted by, and to the extent funds are available for
such purpose under, the Sale and Servicing Agreement, the Spread Account
Agreement or Trust Agreement.

                                       18

The Issuer will not, directly or indirectly, make payments to or payments from
the Collection Account except in accordance with this Indenture and the Basic
Documents.

          SECTION 3.19. Notice of Events of Default. Upon a responsible officer
of the Owner Trustee having actual knowledge or receipt of written notice
thereof, the Issuer agrees to give the Indenture Trustee, the Trust Collateral
Agent, the Note Insurer and the Rating Agencies prompt written notice of each
Event of Default hereunder and each default on the part of the Servicer or the
Transferor of its obligations under the Sale and Servicing Agreement.

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

          SECTION 3.21. Income Tax Characterization. For purposes of federal
income, state and local income and franchise and any other income taxes, the
Issuer will treat, and each Noteholder by its acceptance of a Note will be
deemed to have agreed to treat, the Notes as indebtedness and hereby instructs
the Indenture Trustee to treat the Notes as indebtedness for all applicable tax
reporting purposes.

                                   ARTICLE IV

                           Satisfaction and Discharge

          SECTION 4.1. Satisfaction and Discharge of Indenture. This Indenture
shall cease to be of further effect with respect to the Notes and the Class C
Certificate except as to (i) rights of registration of transfer and exchange of
the Notes, (ii) substitution of mutilated, destroyed, lost or stolen Notes,
(iii) rights of Noteholders and the Class C Certificateholder to receive
payments of principal thereof and interest thereon, (iv) Sections 3.3, 3.4, 3.5,
3.8, 3.10, 3.12, 3.13, 3.20 and 3.21, (v) the rights, obligations and immunities
of the Indenture Trustee hereunder (including the rights of the Indenture
Trustee under Section 6.7 and the obligations of the Indenture Trustee under
Section 4.2) and (vi) the rights of Noteholders and the Class C
Certificateholder as beneficiaries hereof with respect to the property so
deposited with the Indenture Trustee payable to all or any of them, and the
Indenture Trustee, on demand of and at the expense of the Issuer, shall execute
proper instruments acknowledging satisfaction and discharge of this Indenture
with respect to the Notes and the Class C Certificate, when:

               (A) either

               (1) all Notes theretofore authenticated and delivered (other than
          (i) Notes that have been destroyed, lost or stolen and that have been
          replaced or paid as provided in Section 2.5 and (ii) Notes for whose
          payment money has theretofore been deposited in trust or segregated
          and held in trust by the Issuer and thereafter repaid to the Issuer or
          discharged from such trust, as provided in Section 3.3) have been
          delivered to the Indenture Trustee for cancellation, the Class C
          Certificate theretofore authenticated and delivered as provided in the
          Trust Agreement has been delivered to the Owner Trustee for
          cancellation and the Policy has expired and been returned to the Note
          Insurer for cancellation; or

                                       19

               (2) all Notes or the Class C Certificate not theretofore
          delivered to the Indenture Trustee for cancellation

               (i) have become due and payable,

               (ii) will become due and payable on the Class A-1 Final Scheduled
          Payment Date, the Class A-2 Final Scheduled Payment Date, the Class
          A-3 Final Scheduled Payment Date or the Class A-4 Final Scheduled
          Payment Date, as applicable, within one year, or

               (iii) are to be called for redemption within one year under
          arrangements satisfactory to the Indenture Trustee for the giving of
          notice of redemption by the Indenture Trustee in the name, and at the
          expense, of the Issuer,

          and the Issuer, in the case of (i), (ii) or (iii) above, has
          irrevocably deposited or caused to be irrevocably deposited with the
          Indenture Trustee cash or direct obligations of or obligations
          guaranteed by the United States of America (which will mature prior to
          the date such amounts are payable), in trust for such purpose, in an
          amount sufficient to pay and discharge the entire indebtedness on such
          Notes not theretofore delivered to the Indenture Trustee for
          cancellation when due on the Class A-1 Final Scheduled Payment Date,
          the Class A-2 Final Scheduled Payment Date, the Class A-3 Final
          Scheduled Payment Date or the Class A-4 Final Scheduled Payment Date,
          as applicable, or the Redemption Date (if Notes shall have been called
          for redemption pursuant to Section 10.1(a)), as the case may be;

               (B) the Issuer has paid or caused to be paid all its obligations
          to the Note Insurer, the Noteholders, the Class C Certificateholder
          and the Indenture Trustee; and

               (C) the Issuer has delivered to the Indenture Trustee and the
          Note Insurer an Officer's Certificate and an Opinion of Counsel and,
          if required by the TIA, an Independent Certificate from a firm of
          certified public accountants, each meeting the applicable requirements
          of Section 11.1(a) and each stating that all conditions precedent
          herein provided for relating to the satisfaction and discharge of this
          Indenture have been complied with.

          SECTION 4.2. Application of Trust Money. All moneys deposited with the
Indenture Trustee pursuant to Section 4.1 hereof shall be held in trust and
applied by it, in accordance with the provisions of the Notes, the Class C
Certificate, the Class R Certificate and this Indenture, to the payment, either
directly or through any Note Paying Agent, as the Indenture Trustee may
determine, to the Holders of the particular Notes or Certificate for the payment
or redemption of which such moneys have been deposited with the Indenture
Trustee, of all sums due and to become due thereon for principal and interest;
but such moneys need not be segregated from other funds except to the extent
required herein or in the Sale and Servicing Agreement or required by law.

          SECTION 4.3. Repayment of Moneys Held by Note Paying Agent. In
connection with the satisfaction and discharge of this Indenture with respect to
the Notes, all

                                       20

moneys then held by any Note Paying Agent other than the Indenture Trustee under
the provisions of this Indenture with respect to such Notes shall, upon demand
of the Issuer, be paid to the Indenture Trustee to be held and applied according
to Section 3.3 and thereupon such Note Paying Agent shall be released from all
further liability with respect to such moneys.

                                   ARTICLE V

                                    Remedies

          SECTION 5.1. Events of Default. "Event of Default", wherever used
herein, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected
by operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

          (i) default in the payment of any Note Interest when the same becomes
     due and payable, and such default shall continue for a period of five (5)
     days (solely for purposes of this clause, a payment on the Class A Notes
     funded by the Note Insurer or funded from amounts on deposit in the
     Supplemental Enhancement Account pursuant to the Sale and Servicing
     Agreement, or the Spread Account pursuant to the Spread Account Agreement,
     shall be deemed to be a payment made by the Issuer); or

          (ii) default in the payment of the Principal Payment Amount, on the
     Class A-1 Final Scheduled Payment Date, the Class A-2 Final Scheduled
     Payment Date, the Class A-3 Final Scheduled Payment Date or the Class A-4
     Final Scheduled Payment Date, as the case may be (solely for purposes of
     this clause, a payment on the Class A Notes funded by the Note Insurer or
     funded from amounts on deposit in the Supplemental Enhancement Account
     pursuant to the Sale and Servicing Agreement or the Spread Account pursuant
     to the Spread Account Agreement, shall be deemed to be a payment made by
     the Issuer); or

          (iii) so long as a Note Insurer Default shall not have occurred and be
     continuing, an Insurance Agreement Indenture Cross Default shall have
     occurred; provided, however, that the occurrence of an Insurance Agreement
     Indenture Cross Default may not form the basis of an Event of Default
     unless the Note Insurer shall, upon prior written notice to the Rating
     Agencies, have delivered to the Issuer and the Indenture Trustee and not
     rescinded a written notice specifying that such Insurance Agreement
     Indenture Cross Default constitutes an Event of Default under this
     Indenture; or

          (iv) so long as a Note Insurer Default shall not have occurred and be
     continuing, a default in the observance or performance of any covenant or
     agreement of the Issuer made in this Indenture (other than a covenant or
     agreement, a default in the observance or performance of which is elsewhere
     in this Section specifically dealt with), or any representation or warranty
     of the Issuer made in this Indenture or in any certificate or other writing
     delivered under or in connection with this Indenture proving to have been
     incorrect in any material respect when made, and such default continuing or
     not being cured, or the circumstances or conditions for which the
     representation or warranty was incorrect not having been eliminated or
     otherwise cured for a period of thirty (30) days

                                       21

     after the date on which written notice of such default or incorrect
     representation or warranty, requiring the same to be remedied, shall have
     been given to the Issuer and the Indenture Trustee by the Note Insurer (or
     if a Note Insurer Default has occurred and is continuing, by the
     Noteholders evidencing not less than 25% of the Class A Note Balance or
     after the Policy Expiration Date, by the Class C Certificateholder; or

          (v) so long as a Note Insurer Default shall have occurred and be
     continuing, the filing of a decree or order for relief by a court having
     jurisdiction in the premises in respect of the Issuer or any substantial
     part of the Pledged Property in an involuntary case under any applicable
     federal or state bankruptcy, insolvency or other similar law now or
     hereafter in effect, or appointing a receiver, liquidator, assignee,
     custodian, trustee, sequestrator or similar official of the Issuer or for
     any substantial part of the Pledged Property, or ordering the winding-up or
     liquidation of the Issuer's affairs, and such decree or order shall remain
     unstayed and in effect for a period of sixty (60) consecutive days; or

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

          SECTION 5.2. Rights Upon Event of Default. (a) If a Note Insurer
Default shall not have occurred and be continuing and an Event of Default shall
have occurred and be continuing, the Notes shall become immediately due and
payable at par, together with accrued interest thereon. If an Event of Default
shall have occurred and be continuing, the Controlling Party may exercise any of
the remedies specified in Section 5.4(a). In the event of any acceleration of
any Class A Notes by operation of this Section 5.2, the Indenture Trustee shall
continue to be entitled to make claims under the Policy pursuant to the Sale and
Servicing Agreement for Scheduled Payments on the Class A Notes. Payments under
the Policy following acceleration of any Class A Notes shall be applied by the
Indenture Trustee:

          FIRST: to Class A Noteholders for amounts due and unpaid on the Class
     A Notes for interest, ratably, without preference or priority of any kind,
     according to the amounts due and payable on the Class A Notes for interest;
     and

          SECOND: to Class A Noteholders for amounts due and unpaid on the Class
     A Notes for principal, ratably, without preference or priority of any kind,
     according to the amounts due and payable on the Class A Notes for
     principal.

          (b) In the event any Class A Notes are accelerated due to an Event of
Default, the Note Insurer shall have the right (in addition to its obligation to
pay Scheduled Payments on the Class A Notes in accordance with the Policy), but
not the obligation, to make payments under the Policy or otherwise of interest
and principal due on such Class A Notes, in whole or in part,

                                       22

on any date or dates following such acceleration as the Note Insurer, in its
sole discretion, shall elect.

          (c) If a Note Insurer Default shall have occurred and be continuing
and an Event of Default shall have occurred and be continuing, the Indenture
Trustee in its discretion may, or if so requested in writing by the
Majorityholders shall, declare by written notice to the Issuer that the Notes
become, whereupon they shall become, immediately due and payable at par, in
accordance with the priorities set forth in Section 5.6, together with accrued
interest thereon.

          (d) If a Note Insurer Default shall have occurred and be continuing,
then at any time after such declaration of acceleration of maturity has been
made and before a judgment or decree for payment of the money due has been
obtained by the Indenture Trustee as hereinafter in this Article V; provided,
the Majorityholders, by written notice to the Issuer and the Indenture Trustee,
may rescind and annul such declaration and its consequences if:

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

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

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

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

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

          SECTION 5.3. Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee. (a) The Issuer covenants that if (i) default is made in the
payment of any interest on any Note when the same becomes due and payable, and
such default continues for a period of five days, or (ii) default is made in the
payment of the principal of or any installment of the principal of any Note when
the same becomes due and payable, the Issuer will pay to the Indenture Trustee,
for the benefit of the Holders of the Notes, the whole amount then due and
payable on such Notes for principal and interest, with interest upon the overdue
principal, and, to the extent payment at such rate of interest shall be legally
enforceable, upon overdue installments of interest, at the applicable Note Rate
and in addition thereto such further amount as shall be sufficient to cover the
costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Indenture Trustee and its agents and
counsel.

          (b) Each of the Indenture Trustee and the Note Insurer hereby
irrevocably and unconditionally appoints the Controlling Party as the true and
lawful attorney-in-fact of the Indenture Trustee or the Note Insurer, as
applicable, for so long as neither the Indenture Trustee nor the Note Insurer is
the Controlling Party, with full power of substitution, to execute,

                                       23

acknowledge and deliver any notice, document, certificate, paper, pleading or
instrument and to do in the name of the Controlling Party as well as in the
name, place and stead of the Indenture Trustee and the Note Insurer such acts,
things and deeds for or on behalf of and in the name of either the Indenture
Trustee or the Note Insurer under this Indenture (including specifically under
Section 5.4) and under the Basic Documents which either the Indenture Trustee
and the Note Insurer could or might do or which may be necessary, desirable or
convenient in such Controlling Party's sole discretion to effect the purposes
contemplated hereunder and under the Basic Documents and, without limitation,
following the occurrence of an Event of Default, exercise full right, power and
authority to take, or defer from taking, any and all acts with respect to the
administration, maintenance or disposition of the Pledged Property.

          (c) If an Event of Default occurs and is continuing, the Indenture
Trustee may in its discretion but with the consent of the Note Insurer, so long
as no Note Insurer Default is then continuing, and shall, at the direction of
the Controlling Party, proceed to protect and enforce its rights and the rights
of the Noteholders by such appropriate Proceedings as the Indenture Trustee or
the Controlling Party shall deem effective to protect and enforce any such
rights, whether for the specific enforcement of any covenant or agreement in
this Indenture or in aid of the exercise of any power granted herein, or to
enforce any other proper remedy or legal or equitable right vested in the
Indenture Trustee by this Indenture or by law.

          (d) Intentionally Omitted.

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

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

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

                                       24

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

          (iv) to file such proofs of claim and other papers or documents as may
     be necessary or advisable in order to have the claims of the Indenture
     Trustee or the Noteholders allowed in any judicial proceedings relative to
     the Issuer, its creditors and its property;

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

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

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

          (h) In any proceedings brought by the Indenture Trustee (and also any
proceedings involving the interpretation of any provision of this Indenture, the
Spread Account Agreement or any other Basic Document), the Indenture Trustee
shall be held to represent all the Holders of the Notes, and it shall not be
necessary to make any Noteholder a party to any such proceedings.

          SECTION 5.4. Remedies. (a) If an Event of Default shall have occurred
and be continuing, the Controlling Party may do one or more of the following
(subject to Section 5.5):

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

                                       25

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

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

          (iv) direct the Trust Collateral Agent to sell or otherwise liquidate
     the Pledged Property or any portion thereof or rights or interest therein,
     at one or more public or private sales called and conducted in any manner
     permitted by law; provided, however, that:

               (A) if the Indenture Trustee is the Controlling Party, the
          Indenture Trustee may not, nor direct the Trust Collateral Agent to,
          sell or otherwise liquidate the Pledged Property following an Event of
          Default unless:

                    (I) such Event of Default is of the type described in
               Section 5.1(i) or (ii), or

                    (II) either

                        (x) 100% of the Noteholders consent thereto,

                        (y) the proceeds of such sale or liquidation are
                    sufficient to discharge in full all amounts then due and
                    unpaid upon such Notes for principal and interest, or

                        (z) the Indenture Trustee determines that the Trust
                    Assets will not continue to provide sufficient funds for the
                    payment of principal of and interest on the Notes as they
                    would have become due if the Notes had not been declared due
                    and payable, and the Indenture Trustee provides prior
                    written notice to the Rating Agencies and obtains the
                    consent of Holders of 66-2/3% of the outstanding Class A
                    Note Balance.

          In determining such sufficiency or insufficiency with respect to
clause (y) and (z), the Indenture Trustee may, but need not, obtain and
conclusively rely upon an opinion of an Independent investment banking or
accounting firm of national reputation, which opinion shall not be at the
expense of the Indenture Trustee, as to the feasibility of such proposed action
and as to the sufficiency of the Pledged Property for such purpose.

          SECTION 5.5. Optional Preservation of the Pledged Property. If the
Indenture Trustee is the Controlling Party and if the Notes have been declared
to be due and payable under Section 5.2 following an Event of Default and such
declaration and its consequences have not been rescinded and annulled, the
Indenture Trustee may, but need not, elect to direct the Trust Collateral Agent
to maintain possession of the Pledged Property. It is the desire of the parties
hereto and the Noteholders that there be at all times sufficient funds for the
payment of principal of and interest on the Notes, and the Indenture Trustee
shall take such desire into account when determining whether or not to direct
the Trust Collateral Agent to maintain possession of the

                                       26

Pledged Property. In determining whether to direct the Trust Collateral Agent to
maintain possession of the Pledged Property, the Indenture Trustee may, but need
not, obtain and conclusively rely upon an opinion of an Independent investment
banking or accounting firm of national reputation, which opinion shall not be at
the expense of the Indenture Trustee, as to the feasibility of such proposed
action and as to the sufficiency of the Pledged Property for such purpose.

          SECTION 5.6. Priorities.

          (a) If the Indenture Trustee collects any money or property pursuant
to this Article V (excluding any payments made under the Policy), or if the
Trust Collateral Agent delivers any money or property in respect of liquidation
of the Pledged Property to the Indenture Trustee pursuant to Section 5.4(iv),
such money or property, as applicable, shall be applied by the Indenture Trustee
on the related Payment Date in the following order of priority:

          First: amounts due and owing and required to be distributed to the
     Servicer (provided there is no Servicer Termination Event), the Indenture
     Trustee, the Custodian and the Back-up Servicer, respectively, pursuant to
     priorities (i) and (ii) of Section 5.6(c) of the Sale and Servicing
     Agreement and not previously distributed, in the order of such priorities
     and without preference or priority of any kind within such priorities;

          Second: to the Class A-1 Noteholders, the Class A-2 Noteholders, the
     Class A-3 Noteholders and the Class A-4 Noteholders for amounts due and
     unpaid on the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes and the
     Class A-4 Notes for interest, ratably, without preference or priority of
     any kind, according to the amounts due and payable on the Class A-1 Notes,
     the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes for
     interest;

          Third: to the Class A-1 Noteholders, the Class A-2 Noteholders, the
     Class A-3 Noteholders and the Class A-4 Noteholders for amounts due and
     unpaid on the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and
     the Class A-4 Notes for principal, pro rata (based on the then outstanding
     Class A-1 Note Balance, Class A-2 Note Balance, Class A-3 Note Balance and
     Class A-4 Note Balance) without preference of any kind;

          Fourth: amounts due and owing and required to be distributed to the
     Note Insurer pursuant to priorities (v) and (vi) of Section 5.6(c) of the
     Sale and Servicing Agreement and not previously distributed;

          Fifth: for distribution to the Class C Certificateholder, amounts due
     and owing and required to be distributed pursuant to priority (vii) of
     Section 5.6(c) of the Sale and Servicing Agreement;

          Sixth: to the Collateral Agent for deposit in the Supplemental
     Enhancement Account, any reimbursement amounts pursuant to priority (viii)
     of Section 5.6(c) of the Sale and Servicing Agreement;

          Seventh: to the Trust Collateral Agent, the Back-up Servicer, the
     Indenture Trustee and the Custodian, respectively, amounts due and owing
     and required to be

                                       27

     distributed to such entities (including amounts due under Section 6.7)
     pursuant to priority (ix) of Section 5.6(c) of the Sale and Servicing
     Agreement and not previously distributed;

          Eighth: to the Collateral Agent, for deposit in the Spread Account,
     any amounts remaining after application pursuant to the priorities above,
     for application in accordance with the provisions of the Spread Account
     Agreement;

          Ninth: for distribution to the Class C Certificateholder, up to an
     amount equal to any Class C Interest Carryover Shortfall, Class C
     Supplemental Interest and Class C Principal Deficiency Amount then due and
     unpaid and the outstanding principal balance of the Class C Certificate;

          Tenth: to the Class R Certificateholder, any remaining amounts
     released from the Spread Account after application pursuant to the
     priorities above.

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

          SECTION 5.7. Limitation of Suits.

          No Class A Noteholder shall have any right to institute any
proceeding, judicial or otherwise, with respect to this Indenture, or for the
appointment of a receiver or trustee, or for any other remedy hereunder, unless:

          (i) such Holder has previously given written notice to the Indenture
     Trustee of a continuing Event of Default;

          (ii) the Class A Noteholders evidencing not less than 25% of the Class
     A Note Balance have made written request to the Indenture Trustee to
     institute such proceeding in respect of such Event of Default in its own
     name as Indenture Trustee hereunder;

          (iii) such Holder or Holders have offered to the Indenture Trustee
     indemnity reasonably satisfactory to it against the costs, expenses and
     liabilities to be incurred in complying with such request;

          (iv) the Indenture Trustee for sixty (60) days after its receipt of
     such notice, request and offer of indemnity has failed to institute such
     proceedings;

          (v) no direction inconsistent with such written request has been given
     to the Indenture Trustee during such 60-day period by the Majorityholders;
     and

          (vi) a Note Insurer Default shall have occurred and be continuing.

          It is understood and intended that no one or more Noteholders shall
have any right in any manner whatever by virtue of, or by availing of, any
provision of this Indenture to affect, disturb or prejudice the rights of any
other Noteholders or to obtain or to seek to obtain priority

                                       28

or preference over any other Noteholders or to enforce any right under this
Indenture, except in the manner herein provided.

          In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Noteholders, each
representing less than a majority of the outstanding Class A Note Balance, the
Indenture Trustee shall take direction from the group representing the greater
percentage of the outstanding Class A Note Balance, and if the groups represent
equal interests, the Indenture Trustee, in its sole discretion may determine
what action, if any, shall be taken, notwithstanding any other provisions of
this Indenture.

          SECTION 5.8. Unconditional Rights of Noteholders To Receive Principal
and Interest. Subject to the provisions of this Indenture, the Holder of any
Note shall have the right, which is absolute and unconditional, to receive
payment of the principal of and interest, if any, on such Note on or after the
respective due dates thereof expressed in such Note or in this Indenture (or, in
the case of redemption, on or after the Redemption Date), to the extent that
funds are available for distribution to each such Holder on such due dates, and
the Controlling Party may institute suit for the enforcement of any such
payment, and such right shall not be impaired without the consent of such
Holder.

          SECTION 5.9. Restoration of Rights and Remedies. If the Controlling
Party or any Noteholder has instituted any proceeding to enforce any right or
remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason or has been determined adversely to the Indenture
Trustee or to such Noteholder, then and in every such case the Issuer, the
Indenture Trustee and the Noteholders shall, subject to any determination in
such Proceeding, be restored severally and respectively to their former
positions hereunder, and thereafter all rights and remedies of the Indenture
Trustee and the Noteholders shall continue as though no such proceeding had been
instituted.

          SECTION 5.10. Rights and Remedies Cumulative. No right or remedy
herein conferred upon or reserved to the Controlling Party or to the Noteholders
is intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law
or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

          SECTION 5.11. Delay or Omission Not a Waiver. No delay or omission of
the Indenture Trustee, the Controlling Party or any Holder of any Note to
exercise any right or remedy accruing upon any Default or Event of Default shall
impair any such right or remedy or constitute a waiver of any such Default or
Event of Default or an acquiescence therein. Every right and remedy given by
this Article V or by law to the Indenture Trustee, the Note Insurer or to the
Noteholders may be exercised from time to time, and as often as may be deemed
expedient, by the Indenture Trustee, the Note Insurer or by the Noteholders, as
the case may be.

          SECTION 5.12. Control by Noteholders. If the Indenture Trustee is the
Controlling Party, Majorityholders shall have the right to direct the time,
method and place of conducting any Proceeding for any remedy available to the
Indenture Trustee with respect to the Notes or exercising any trust or power
conferred on the Indenture Trustee; provided that:

                                       29

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

          (ii) if the conditions set forth in Section 5.5 have been satisfied
     and the Indenture Trustee elects to retain the Pledged Property pursuant to
     such Section, then any direction to the Indenture Trustee by Noteholders
     representing less than 100% of the outstanding Note Balance of the Notes to
     sell or liquidate the Pledged Property shall be of no force and effect; and

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

provided, however, that, subject to Article VI, the Indenture Trustee need not
take any action that it determines might involve it in liability or might
materially adversely affect the rights of any Noteholders or the Class C
Certificateholder not consenting to such action.

          SECTION 5.13. Waiver of Past Defaults. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.4, the Note
Insurer (provided no Note Insurer Default shall have occurred and be continuing)
or the Majorityholders (if a Note Insurer Default shall have occurred and be
continuing), may waive any past Default or Event of Default and its consequences
except a Default (a) in payment of principal of or interest on any of the Notes
or (b) in respect of a covenant or provision hereof which cannot be modified or
amended without the consent of the Holder of each Note. In the case of any such
waiver, the Issuer, the Indenture Trustee and the Holders of the Notes shall be
restored to their former positions and rights hereunder, respectively; but no
such waiver shall extend to any subsequent or other Default or impair any right
consequent thereto.

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

          SECTION 5.14. Undertaking for Costs. All parties to this Indenture
agree, and each Holder of any Note by such Holder's acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, in any suit
for the enforcement of any right or remedy under this Indenture, or in any suit
against the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to (a) any suit instituted by the
Indenture Trustee, (b) any suit instituted by any Noteholders, or groups of
Noteholders, in each case holding in the aggregate more than 10% of the
outstanding Note Balance of each of the Class A Notes or (c) any suit instituted
by any Noteholder for the enforcement of the payment of principal of or interest
on any Note on or after the respective due dates expressed in such Note and in
this Indenture (or, in the case of redemption, on or after the Redemption Date).

                                       30

          SECTION 5.15. Waiver of Stay or Extension Laws. The Issuer covenants
(to the extent that it may lawfully do so) that it will not at any time insist
upon, or plead or in any manner whatsoever, claim or take the benefit or
advantage of, any stay or extension law wherever enacted, now or at any time
hereafter in force, that may affect the covenants or the performance of this
Indenture; and the Issuer (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that it
will not hinder, delay or impede the execution of any power herein granted to
the Indenture Trustee, but will suffer and permit the execution of every such
power as though no such law had been enacted.

          SECTION 5.16. Action on Notes. The Indenture Trustee's right to seek
and recover judgment on the Notes or under this Indenture shall not be affected
by the seeking, obtaining or application of any other relief under or with
respect to this Indenture. Neither the lien of this Indenture nor any rights or
remedies of the Indenture Trustee or the Noteholders shall be impaired by the
recovery of any judgment by the Indenture Trustee against the Issuer or by the
levy of any execution under such judgment upon any portion of the Pledged
Property or upon any of the assets of the Issuer.

          SECTION 5.17. Performance and Enforcement of Certain Obligations. (a)
Promptly following a request from the Indenture Trustee upon the direction of
the Servicer to do so and at the Issuer's expense, the Issuer agrees to take all
such lawful action as the Indenture Trustee may request to compel or secure the
performance and observance by the Transferor and the Servicer, as applicable, of
each of their obligations to the Issuer under or in connection with the Sale and
Servicing Agreement in accordance with the terms thereof, and to exercise any
and all rights, remedies, powers and privileges lawfully available to the Issuer
under or in connection with the Sale and Servicing Agreement to the extent and
in the manner directed by the Indenture Trustee, including the transmission of
notices of default on the part of the Transferor or the Servicer thereunder and
the institution of legal or administrative actions or proceedings to compel or
secure performance by the Transferor or the Servicer of each of their
obligations under the Sale and Servicing Agreement.

          (b) If the Indenture Trustee is the Controlling Party and if an Event
of Default has occurred and is continuing, the Indenture Trustee may, and, at
the written direction of the Holders of 66-2/3% of the outstanding Note Balance
of the Class A Notes shall, subject to Article VI, exercise all rights,
remedies, powers, privileges and claims of the Issuer against the Transferor or
the Servicer under or in connection with the Sale and Servicing Agreement,
including the right or power to take any action to compel or secure performance
or observance by the Transferor or the Servicer of each of their obligations to
the Issuer thereunder and to give any consent, request, notice, direction,
approval, extension or waiver under the Sale and Servicing Agreement, and any
right of the Issuer to take such action shall be suspended.

          SECTION 5.18. Subrogation.

          The Note Insurer shall, to the extent it makes any payment with
respect to the Class A Notes, become subrogated to the rights of the recipients
of such payments to the extent of such payments. Subject to and conditioned upon
any payment with respect to the Class A Notes by or on behalf of the Note
Insurer, each Class A Noteholder shall be deemed, without further action, to
have directed the Indenture Trustee to assign to the Note Insurer all rights to
the payment of interest or principal with respect to the Class A Notes which are
then due for

                                       31

payment to the extent of all payments made by the Note Insurer and the Note
Insurer may exercise any option, vote, right, power or the like with respect to
the Class A Notes to the extent that it has made payment with respect to the
Class A Notes whether pursuant to the Policy or otherwise. Notwithstanding the
foregoing, the order of priority of payments to be made pursuant to Section
5.6(c) of the Sale and Servicing Agreement shall not be modified by this clause.
To evidence such subrogation, the Note Registrar shall note the Note Insurer's
rights as subrogee upon the register of Class A Noteholders upon receipt from
the Note Insurer of proof of payment by the Note Insurer of any Scheduled
Payment or other payment.

          SECTION 5.19. Preference Claims; Direction of Proceedings.

          (a) In the event that the Indenture Trustee has received a certified
copy of an order of the appropriate court that any Scheduled Payment paid on a
Class A Note has been avoided in whole or in part as a preference payment under
applicable bankruptcy law, the Indenture Trustee shall so notify the Note
Insurer, shall comply with the provisions of the Policy to obtain payment by the
Note Insurer of such avoided payment, and shall, at the time it provides notice
to the Note Insurer, notify Holders of the Class A Notes by mail that, in the
event that any Class A Noteholder's payment is so recoverable, such Class A
Noteholder will be entitled to payment pursuant to the terms of the Policy.
Pursuant to the terms of the Policy, the Note Insurer will make such payment on
behalf of the Class A Noteholder to the receiver, conservator,
debtor-in-possession or trustee in bankruptcy named in the Order (as defined in
the Policy) and not to the Indenture Trustee or any Class A Noteholder directly
(unless such Class A Noteholder has previously paid such payment to the
receiver, conservator, debtor-in-possession or trustee in bankruptcy, in which
case the Note Insurer will make such payment to the Indenture Trustee for
payment, in accordance with the instructions to be provided by the Note Insurer,
to such Class A Noteholder upon proof of such payment reasonably satisfactory to
the Note Insurer).

          (b) Each Notice of Claim shall provide that the Indenture Trustee, on
its behalf and on behalf of the Class A Noteholders, thereby appoints the Note
Insurer as agent and attorney-in-fact for the Indenture Trustee and each Class A
Noteholder in any legal proceeding with respect to the Class A Notes. The
Indenture Trustee shall promptly notify the Note Insurer of any proceeding or
the institution of any action (of which a Responsible Officer of the Indenture
Trustee has actual knowledge) seeking the avoidance as a preferential transfer
under applicable bankruptcy, insolvency, receivership, rehabilitation or similar
law (a "Preference Claim") of any payment made with respect to the Class A
Notes. Each Holder of Class A Notes, by its purchase of Class A Notes, and the
Indenture Trustee hereby agree that so long as a Note Insurer Default shall not
have occurred and be continuing, the Note Insurer may at any time during the
continuation of any proceeding relating to a Preference Claim direct all matters
relating to such Preference Claim including (i) the direction of any appeal of
any order relating to any Preference Claim and (ii) the posting of any surety,
supersedeas or performance bond pending any such appeal at the expense of the
Note Insurer, but subject to reimbursement as provided in the Insurance
Agreement. In addition, and without limitation of the foregoing, the Note
Insurer shall be subrogated to, and each Class A Noteholder and the Indenture
Trustee hereby delegate and assign, to the fullest extent permitted by law, the
rights of the Indenture Trustee and each Class A Noteholder in the conduct of
any proceeding with respect to a Preference Claim, including, without
limitation, all rights of any party to an adversary proceeding action with
respect to any court order issued in connection with any such Preference Claim.

                                       32

                                   ARTICLE VI

                              The Indenture Trustee

          SECTION 6.1. Duties of Indenture Trustee. (a) The Indenture Trustee,
both prior to the occurrence of an Event of Default and after an Event of
Default shall have been cured or waived, shall undertake to perform such duties
and only such duties as are specifically set forth in this Indenture. If an
Event of Default shall have occurred and shall not have been cured or waived,
the Indenture Trustee may, and at the direction of the Note Insurer (or, if a
Note Insurer Default shall have occurred and is continuing, the
Majorityholders), shall exercise such of the rights and powers vested in it by
this Indenture and shall use the same degree of care and skill in their
exercise, as a prudent person would exercise or use under the circumstances in
the conduct of its own affairs.

          (b) The Indenture Trustee, upon receipt of all resolutions,
certificates, statements, opinions, reports, documents, orders or other
instruments furnished to the Indenture Trustee that shall be specifically
required to be furnished pursuant to any provision of this Indenture, shall
examine them to determine whether they conform to the requirements of this
Indenture; provided, however, that the Indenture Trustee shall not be
responsible for the accuracy or content of any such resolution, certificate,
statement, opinion, report, document, order or other instrument. If any such
instrument is found not to conform in any material respect to the requirements
of this Indenture, the Indenture Trustee shall notify the Note Insurer, the
Class C Certificateholder and the Noteholders of such instrument in the event
that the Indenture Trustee, after so requesting, does not receive a
satisfactorily corrected instrument.

          (c) The Indenture Trustee shall take and maintain custody of the
Schedule of Receivables included as Schedule A to the Sale and Servicing
Agreement and each Schedule of Receivables attached as Schedule A to the related
Transfer Agreement and shall retain copies of all Servicer's Certificates
prepared under the Sale and Servicing Agreement.

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

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

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

                                       33

          (iii) The Indenture Trustee shall not be liable with respect to any
     action taken, suffered, or omitted to be taken in good faith in accordance
     with this Indenture or at the direction of the Note Insurer or, after a
     Note Insurer Default, the Class A Noteholders evidencing not less than 25%
     of the Class A Note Balance, or, after the Policy Expiration Date, by the
     Class C Certificateholder, relating to the time, method, and place of
     conducting any proceeding for any remedy available to the Indenture
     Trustee, or exercising any trust or power conferred upon the Indenture
     Trustee, under this Indenture;

          (iv) The Indenture Trustee shall not be charged with knowledge of any
     Event of Default, unless a Responsible Officer of the Indenture Trustee
     receives written notice of such Event of Default from the Servicer or the
     Transferor, as the case may be, the Note Insurer or, after a Note Insurer
     Default, the Class A Noteholders evidencing not less than 25% of the Class
     A Note Balance or, after the Policy Expiration Date, by the Class C
     Certificateholder (such notice shall constitute actual knowledge of an
     Event of Default by the Indenture Trustee); and

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

          (e) The Indenture Trustee may, but shall not be required to, expend or
risk its own funds or otherwise incur financial liability in the performance of
any of its duties hereunder, or in the exercise of any of its rights or powers,
unless it shall have been provided with indemnity against such risk or liability
in form and substance satisfactory to the Indenture Trustee, and none of the
provisions contained in this Indenture shall in any event require the Indenture
Trustee to perform, or be responsible for the manner of performance of, any of
the obligations of the Servicer under this Indenture except during such time, if
any, as the Indenture Trustee, in its capacity as Back-up Servicer, shall be the
successor to, and be vested with the rights, duties, powers, and privileges of,
the Servicer in accordance with the terms of the Sale and Servicing Agreement.

          (f) Except for actions expressly authorized by this Indenture, the
Indenture Trustee shall take no action reasonably likely to impair the security
interests created or existing under any Receivable or Financed Vehicle or to
impair the value of any Receivable or Financed Vehicle.

          (g) All information obtained by the Indenture Trustee regarding the
Obligors and the Receivables, whether upon the exercise of its rights under this
Indenture or otherwise, shall be maintained by the Indenture Trustee in
confidence and shall not be disclosed to any other Person, all in accordance
with the Federal Financial Privacy Law; provided that, nothing herein shall
prevent the Indenture Trustee from delivering copies of such information whether
or not constituting Confidential Information, and disclosing other information,
whether or not Confidential Information, to (i) its directors, officers,
employees, agents and professional consultants to the extent necessary to carry
on the Indenture Trustee's business in the ordinary course, (ii) any Noteholder
or the Note Insurer to the extent that such Noteholder or the Note Insurer is
entitled to such information under this Indenture, but not otherwise, (iii) any
governmental authority which specifically requests (or as to which applicable
regulations require) such information, (iv) any nationally recognized rating
agency in connection with the

                                       34

rating of the Notes by such agency, or (v) any other Person to which such
delivery or disclosure may be necessary or appropriate, (a) in compliance with
any applicable law, rule, regulation or order, (b) in response to any subpoena
or other legal process, (c) in connection with any litigation to which the
Indenture Trustee is a party, (d) in order to enforce the rights of the
Noteholders and the Note Insurer under the Trust established hereunder, or (e)
otherwise, in accordance with the Federal Financial Privacy Law; provided, that,
prior to any such disclosure, the Indenture Trustee shall inform each such party
(other than any Noteholder, the Note Insurer or any other party to the Basic
Documents) that receives Confidential Information of the foregoing requirements
and shall use its commercially reasonable best efforts to cause such party to
comply with such requirements.

          (h) Money held in trust by the Indenture Trustee need not be
segregated from other funds except to the extent required by law or the terms of
this Indenture or the Sale and Servicing Agreement.

          (i) Every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Indenture Trustee
shall be subject to the provisions of this Section 6.1 and the provisions of the
TIA.

          (j) The Indenture Trustee shall, and hereby agrees that it will,
perform all of the obligations and duties required of it under the Sale and
Servicing Agreement.

          (k) The Indenture Trustee shall, and hereby agrees that it will, hold
the Policy in trust, and will hold any proceeds of any claim on the Policy in
trust, solely for the use and benefit of the Class A Noteholders.

          (l) Without limiting the generality of this Section 6.1, the Indenture
Trustee shall have no duty (i) to see to any recording, filing or depositing of
this Indenture or any agreement referred to herein or any financing statement
evidencing a security interest in the Financed Vehicles, or to see to the
maintenance of any such recording or filing or depositing or to any recording,
refiling or redepositing of any thereof, (ii) to see to any insurance of the
Financed Vehicles or Obligors or to effect or maintain any such insurance, (iii)
to see to the payment or discharge of any tax, assessment or other governmental
charge or any Lien or encumbrance of any kind owing with respect to, assessed or
levied against any part of the Pledged Property, (iv) to confirm or verify the
contents of any reports or certificates delivered to the Indenture Trustee
pursuant to this Indenture or the Sale and Servicing Agreement believed by the
Indenture Trustee to be genuine and to have been signed or presented by the
proper party or parties, or (v) to inspect the Financed Vehicles at any time or
ascertain or inquire as to the performance or observance of any of the Issuer's,
the Transferor's or the Servicer's representations, warranties or covenants or
the Servicer's duties and obligations as Servicer and as custodian of the
Receivable Files under the Sale and Servicing Agreement.

          (m) In no event shall JPMorgan Chase, in any of its capacities
hereunder, be deemed to have assumed any duties of the Owner Trustee under the
Delaware Statutory Trust Act, common law, or the Trust Agreement.

          (n) The Indenture Trustee shall not be required to give any bond or
surety in respect of the powers granted to it under this Indenture.

                                       35

          SECTION 6.2. Rights of Indenture Trustee. Except as otherwise provided
in Section 6.1(b):

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

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

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

          (iv) The Indenture Trustee shall not be bound to make any
     investigation into the facts or matters stated in any resolution,
     certificate, statement, instrument, opinion, report, notice, request,
     consent, order, approval, bond, or other paper or document, unless
     requested in writing to do so by the Note Insurer (if no Note Insurer
     Default shall have occurred or be continuing), the Issuer or by the Class A
     Noteholders evidencing not less than 25% of the Class A Note Balance or,
     after the Policy Expiration Date, by the Class C Certificateholder;
     provided, however, that, if the payment within a reasonable time to the
     Indenture Trustee of the costs, expenses, or liabilities likely to be
     incurred by it in the making of such investigation shall be, in the opinion
     of the Indenture Trustee, not assured to the Indenture Trustee by the
     security afforded to it by the terms of this Indenture, the Indenture
     Trustee may require indemnity in form and substance satisfactory to it
     against such cost, expense, or liability as a condition to so proceeding.
     The reasonable expense of every such examination shall be paid by the
     Person making such request or, if paid by the Indenture Trustee, shall be
     reimbursed by the Person making such request upon demand.

          (v) The Indenture Trustee may execute any of the trusts or powers
     hereunder or perform any duties under this Indenture either directly or by
     or through agents or attorneys or a custodian. The Indenture Trustee shall
     not be responsible for any

                                       36

     misconduct or negligence of any such agent or custodian appointed with due
     care by it hereunder, or of any agent or custodian of the Servicer in its
     capacity as Servicer or custodian or otherwise.

          (vi) The Indenture Trustee shall have no duty of independent inquiry,
     and the Indenture Trustee may rely upon the representations and warranties
     and covenants of the Transferor and the Servicer contained in the Basic
     Documents with respect to the Receivables and the Receivable Files.

          (vii) The Indenture Trustee may rely, as to factual matters relating
     to the Transferor or the Servicer, on an Officer's Certificate of the
     Transferor or Servicer, respectively.

          (viii) The Indenture Trustee shall not be required to take any action
     or refrain from taking any action under this Indenture, or any related
     documents referred to herein, nor shall any provision of this Indenture, or
     any such related document be deemed to impose a duty on the Indenture
     Trustee to take action, if the Indenture Trustee shall have been advised by
     counsel that such action is contrary to (i) the terms of this Indenture,
     (ii) any such related document or (iii) law.

          SECTION 6.3. Individual Rights of Indenture Trustee. The Indenture
Trustee in its individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Issuer or its Affiliates with the same
rights it would have if it were not Indenture Trustee. Any Note Paying Agent,
Note Registrar, co-registrar or co-Note Paying Agent may do the same with like
rights.

          SECTION 6.4. Indenture Trustee's Disclaimer. The recitals contained
herein shall be taken as the statements of the Issuer and the Indenture Trustee
does not assume any responsibility for the correctness thereof. The Indenture
Trustee shall not make any representations as to the validity or sufficiency of
this Indenture, the Notes, or of any Receivable or related document. The
Indenture Trustee shall not at any time have any responsibility or liability for
or with respect to the validity or adequacy of this Indenture, the Trust Assets
or the Notes; it shall not be accountable for the Issuer's use of the proceeds
from the Notes; and it shall not be responsible for any statement of the Issuer
in the Indenture or in any document issued in connection with the sale of the
Notes or in the Notes; provided, however, that the foregoing shall not relieve
the Indenture Trustee of its obligation to perform its duties under this
Indenture. Except with respect to a claim based on the failure of the Indenture
Trustee to perform its duties under this Indenture or based on the Indenture
Trustee's negligence or willful misconduct, no recourse shall be had for any
claim based on any provision of this Indenture, the Notes, or any Receivable or
assignment thereof against the Indenture Trustee in its individual capacity, the
Indenture Trustee shall not have any personal obligation, liability, or duty
whatsoever to any Noteholder or any other Person with respect to any such claim,
and any such claim shall be asserted solely against the Issuer or any indemnitor
who shall furnish indemnity as provided in this Indenture. The Indenture Trustee
shall not be accountable for the use or application by the Issuer of any of the
Notes or of the proceeds of such Notes, or for the use or application of any
funds paid to the Servicer in respect of the Receivables.

                                       37

          SECTION 6.5. Notice of Defaults. If an Event of Default or a Servicing
Termination Event under the Sale and Servicing Agreement occurs and is
continuing and if it is either known by, or written notice of the existence
thereof has been delivered to, a Responsible Officer of the Indenture Trustee,
the Indenture Trustee shall mail to each Noteholder notice of the Event of
Default or Servicer Termination Event within ninety (90) days after such
knowledge or notice occurs. Except in the case of a Default in payment of
principal of or interest on any Note (including payments pursuant to the
mandatory redemption provisions of such Note), the Indenture Trustee may
withhold the notice if and so long as a committee of two or more of its
Responsible Officers in good faith determines that withholding the notice is in
the interests of Noteholders.

          SECTION 6.6. Reports by Indenture Trustee to Holders. The Indenture
Trustee shall deliver to each Noteholder such information as may be reasonably
required to enable such Holder to prepare its federal and state income tax
returns.

          SECTION 6.7. Compensation and Indemnity. (a) Pursuant to Section
5.6(c) of the Sale and Servicing Agreement, the Issuer shall pay to the
Indenture Trustee and the Back-up Servicer from time to time compensation for
their services. The Indenture Trustee, in its capacities, as Indenture Trustee,
Trust Collateral Agent and Back-up Servicer, shall be entitled to receive the
Indenture Trustee's Fee and the Back-up Servicer's Fee on each Payment Date. The
Indenture Trustee's compensation shall not be limited by any law on compensation
of a trustee of an express trust. Pursuant to Section 5.6(c) of the Sale and
Servicing Agreement, the Issuer shall reimburse the Indenture Trustee and the
Trust Collateral Agent for all reasonable out-of-pocket expenses incurred or
made by it, including costs of collection, in addition to the compensation for
its services. Such expenses shall include the reasonable compensation and
expenses and disbursements of the Indenture Trustee's, the Back-up Servicer's,
the Collateral Agent's and the Trust Collateral Agent's agents, counsel,
accountants and experts. The Issuer shall cause the Servicer to indemnify the
Indenture Trustee, the Trust Collateral Agent, the Back-up Servicer, the
Collateral Agent and their respective officers, directors, employees and agents
against any and all loss, liability or expense (including attorneys' fees and
expenses) incurred by each of them in connection with the acceptance or the
administration of this trust and the performance of its duties under the Basic
Documents. The Indenture Trustee, the Trust Collateral Agent, the Collateral
Agent or the Back-up Servicer shall notify the Issuer and the Servicer promptly
of any claim for which it may seek indemnity. Failure by the Indenture Trustee,
the Back-up Servicer, the Collateral Agent or the Trust Collateral Agent to so
notify the Issuer and the Servicer shall not relieve the Issuer of its
obligations hereunder or the Servicer of its obligations under Article XII of
the Sale and Servicing Agreement. The Issuer shall cause the Servicer to defend
any such claim, the Indenture Trustee, Trust Collateral Agent, the Collateral
Agent or the Back-up Servicer may have separate counsel and the Issuer shall
cause the Servicer to pay the fees and expenses of such counsel. Neither the
Issuer nor the Servicer need reimburse any expense or indemnify against any
loss, liability or expense incurred by the Indenture Trustee, the Back-up
Servicer, the Collateral Agent or Trust Collateral Agent through the Indenture
Trustee's, the Back-up Servicer's, the Collateral Agent's or Trust Collateral
Agent's own willful misconduct, negligence or bad faith.

          (b) The Issuer's payment obligations pursuant to this Section shall
survive the discharge of this Indenture or the earlier resignation or removal of
the Indenture Trustee. When the Indenture Trustee, the Trust Collateral Agent or
the Back-up Servicer incurs expenses after

                                       38

the occurrence of a Default specified in Section 5.1(iv) and (v) with respect to
the Issuer, the expenses are intended to constitute expenses of administration
under Title 11 of the United States Code or any other applicable federal or
state bankruptcy, insolvency or similar law. Notwithstanding anything else set
forth in this Indenture or the Basic Documents, the Indenture Trustee agrees
that the obligations of the Issuer (but not the Servicer) to the Indenture
Trustee hereunder and under the Basic Documents shall be recourse to the Pledged
Property only and specifically shall not be recourse to the assets of any
Certificateholder or any Noteholder. In addition, the Indenture Trustee agrees
that its recourse to the Issuer, the Pledged Property, the Transferor and
amounts held pursuant of the Spread Account Agreement shall be limited to the
right to receive the payments referred to in Section 5.6(c) and (d) of the Sale
and Servicing Agreement.

          SECTION 6.8. Replacement of Indenture Trustee. The Indenture Trustee
may resign at any time by so notifying the Issuer and the Note Insurer. To the
extent that the Indenture Trustee resigns hereunder, the Trust Collateral Agent
shall resign under the Sale and Servicing Agreement and the Collateral Agent
shall resign under the Spread Account Agreement. The Issuer may and, at the
request of the Note Insurer (unless a Note Insurer Default shall have occurred
and be continuing) shall, remove the Indenture Trustee, if:

          (i) the Indenture Trustee fails to comply with Section 6.11;

          (ii) a court having jurisdiction in the premises in respect of the
     Indenture Trustee in an involuntary case or proceeding under federal or
     state banking or bankruptcy laws, as now or hereafter constituted, or any
     other applicable federal or state bankruptcy, insolvency or other similar
     law, shall have entered a decree or order granting relief or appointing a
     receiver, liquidator, assignee, custodian, trustee, conservator,
     sequestrator (or similar official) for the Indenture Trustee or for any
     substantial part of the Indenture Trustee's property, or ordering the
     winding-up or liquidation of the Indenture Trustee's affairs;

          (iii) an involuntary case under the federal bankruptcy laws, as now or
     hereafter in effect, or another present or future federal or state
     bankruptcy, insolvency or similar law is commenced with respect to the
     Indenture Trustee and such case is not dismissed within sixty (60) days;

          (iv) the Indenture Trustee commences a voluntary case under any
     federal or state banking or bankruptcy laws, as now or hereafter
     constituted, or any other applicable federal or state bankruptcy,
     insolvency or other similar law, or consents to the appointment of or
     taking possession by a receiver, liquidator, assignee, custodian, trustee,
     conservator, sequestrator (or other similar official) for the Indenture
     Trustee or for any substantial part of the Indenture Trustee's property, or
     makes any assignment for the benefit of creditors or fails generally to pay
     its debts as such debts become due or takes any corporate action in
     furtherance of any of the foregoing;

          (v) the Trust Collateral Agent resigns or is removed in accordance
     with Section 10.8 of the Sale and Servicing Agreement;

                                       39

          (vi) the Collateral Agent resigns or is removed in accordance with the
     Spread Account Agreement;

          (vii) the Back-up Servicer is removed in accordance with Section 8.5
     of the Sale and Servicing Agreement; or

          (viii) the Indenture Trustee otherwise becomes incapable of acting.

          If the Indenture Trustee resigns or is removed or if a vacancy exists
in the office of the Indenture Trustee for any reason (the Indenture Trustee in
such event being referred to herein as the retiring Indenture Trustee), the
Issuer shall promptly appoint a successor Indenture Trustee and Trust Collateral
Agent acceptable to the Note Insurer (so long as a Note Insurer Default shall
not have occurred and be continuing). If the Issuer fails to appoint such a
successor Indenture Trustee and Trust Collateral Agent, the Controlling Party
may appoint a successor Indenture Trustee and Trust Collateral Agent.

          A successor Indenture Trustee shall deliver a written acceptance of
its appointment to the retiring Indenture Trustee, the Note Insurer (provided
that no Note Insurer Default shall have occurred and be continuing) and to the
Issuer. Thereupon the resignation or removal of the retiring Indenture Trustee
shall become effective, and the successor Indenture Trustee shall have all the
rights, powers and duties of the retiring Indenture Trustee under this Indenture
subject to satisfaction of the Rating Agency Condition. The successor Indenture
Trustee shall mail a notice of its succession to Noteholders. The retiring
Indenture Trustee shall promptly transfer all property held by it as Indenture
Trustee to the successor Indenture Trustee.

          If a successor Indenture Trustee does not take office within sixty
(60) days after the retiring Indenture Trustee resigns or is removed, the
retiring Indenture Trustee, the Issuer or the Note Insurer (so long as no Note
Insurer Default has occurred and is continuing) or the Majorityholders (if a
Note Insurer Default has occurred and is continuing) may petition any court of
competent jurisdiction for the appointment of a successor Indenture Trustee.

          If the Indenture Trustee fails to comply with Section 6.11, any
Noteholder may petition any court of competent jurisdiction for the removal of
the Indenture Trustee and the appointment of a successor Indenture Trustee.

          Any resignation or removal of the Indenture Trustee and appointment of
a successor Indenture Trustee pursuant to any of the provisions of this Section
shall not become effective until acceptance of appointment by the successor
Indenture Trustee pursuant to this Section and payment of all fees and expenses
owed to the retiring Indenture Trustee.

          Notwithstanding the replacement of the Indenture Trustee pursuant to
this Section, the Issuer's obligations under Section 6.7 shall continue for the
benefit of the retiring Indenture Trustee.

          SECTION 6.9. Successor Indenture Trustee by Merger. If the Indenture
Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets to, another corporation
or banking association, the resulting, surviving or transferee corporation
without any further act shall be the successor Indenture

                                       40

Trustee. The Indenture Trustee shall provide the Rating Agencies with written
notice of any such transaction and shall mail notice of such merger or
consolidation to the Rating Agencies.

          In case at the time such successor or successors by merger, conversion
or consolidation to the Indenture Trustee shall succeed to the trusts created by
this Indenture any of the Notes shall have been authenticated but not delivered,
any such successor to the Indenture Trustee may adopt the certificate of
authentication of any predecessor Indenture Trustee, and deliver such Notes so
authenticated; and in case at that time any of the Notes shall not have been
authenticated, any successor to the Indenture Trustee may authenticate such
Notes either in the name of any predecessor hereunder or in the name of the
successor to the Indenture Trustee; and in all such cases such certificates
shall have the full force which it is anywhere in the Notes or in this Indenture
provided that the certificate of the Indenture Trustee shall have.

          SECTION 6.10. Appointment of Co-Trustee or Separate Trustee.

          (a) Notwithstanding any other provisions of this Indenture, at any
time, for the purpose of meeting any legal requirement of any jurisdiction in
which any part of the Trust may at the time be located, the Indenture Trustee
with the consent of the Note Insurer (so long as a Note Insurer Default shall
not have occurred and be continuing) shall have the power and may execute and
deliver all instruments to appoint one or more Persons to act as a co-trustee or
co-trustees, or separate trustee or separate trustees, of all or any part of the
Trust, and to vest in such Person or Persons, in such capacity and for the
benefit of the Noteholders, such title to the Trust, or any part hereof, and,
subject to the other provisions of this Section, such powers, duties,
obligations, rights and trusts as the Indenture Trustee may consider necessary
or desirable. No co-trustee or separate trustee hereunder shall be required to
meet the terms of eligibility as a successor Indenture Trustee under Section
6.11 and no notice to Noteholders of the appointment of any co-trustee or
separate trustee shall be required under Section 6.8 hereof.

          (b) Every separate trustee and co-trustee shall, to the extent
permitted by law, be appointed and act subject to the following provisions and
conditions:

          (i) all rights, powers, duties and obligations conferred or imposed
     upon the Indenture Trustee shall be conferred or imposed upon and exercised
     or performed by the Indenture Trustee and such separate trustee or
     co-trustee jointly (it being understood that such separate trustee or
     co-trustee is not authorized to act separately without the Indenture
     Trustee joining in such act), except to the extent that under any law of
     any jurisdiction in which any particular act or acts are to be performed
     the Indenture Trustee shall be incompetent or unqualified to perform such
     act or acts, in which event such rights, powers, duties and obligations
     (including the holding of title to the Trust or any portion thereof in any
     such jurisdiction) shall be exercised and performed singly by such separate
     trustee or co-trustee, but solely at the direction of the Indenture
     Trustee;

          (ii) no trustee hereunder shall be personally liable by reason of any
     act or omission of any other trustee hereunder, including acts or omissions
     of predecessor or successor Indenture Trustees; and

          (iii) the Indenture Trustee may at any time accept the resignation of
     or remove any separate trustee or co-trustee.

                                       41

          (c) Any notice, request or other writing given to the Indenture
Trustee shall be deemed to have been given to each of the then separate trustees
and co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Indenture and
the conditions of this Article VI. Each separate trustee and co-trustee, upon
its acceptance of the trusts conferred, shall be vested with the estates or
property specified in its instrument of appointment, either jointly with the
Indenture Trustee or separately, as may be provided therein, subject to all the
provisions of this Indenture, specifically including every provision of this
Indenture relating to the conduct of, affecting the liability of, or affording
protection to, the Indenture Trustee. Every such instrument shall be filed with
the Indenture Trustee.

          (d) Any separate trustee or co-trustee may at any time constitute the
Indenture Trustee, its agent or attorney-in-fact with full power and authority,
to the extent not prohibited by law, to do any lawful act under or in respect of
this Indenture on its behalf and in its name. If any separate trustee or
co-trustee shall die, dissolve, become insolvent, become incapable of acting,
resign or be removed, all of its estates, properties, rights, remedies and
trusts shall vest in and be exercised by the Indenture Trustee, to the extent
permitted by law, without the appointment of a new or successor Indenture
Trustee.

          (e) Any and all amounts relating to the fees and expenses of the
co-trustee or separate trustee will be borne by the Pledged Property.

          SECTION 6.11. Eligibility. The Indenture Trustee shall at all times
satisfy the requirements of Section 310(a) of the TIA. The Indenture Trustee
under this Indenture shall at all times be organized and doing business under
the laws of the United States of America or any state thereof; authorized under
such laws to exercise corporate trust powers; having a combined capital and
surplus of at least $50,000,000 and subject to supervision or examination by
Federal or State authorities satisfactory to the Note Insurer; and having a
rating, both with respect to long-term and short-term unsecured obligations, of
not less than investment grade by each Rating Agency. If such corporation shall
publish reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purpose of this Section 6.11, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. In case at any time the
Indenture Trustee shall cease to be eligible in accordance with the provisions
of this Section 6.11, the Indenture Trustee shall resign immediately in the
manner and with the effect specified in Section 6.8. The Indenture Trustee shall
comply with Section 310(b) of the TIA, including the optional provision
permitted by the second sentence of Section 310(b)(9) of the TIA; provided,
however, that there shall be excluded from the operation of Section 310(b)(1) of
the TIA any indenture or indentures under which other securities of the Issuer
are outstanding if the requirements for such exclusion set forth in 310(b)(1) of
the TIA are met.

          SECTION 6.12. Preferential Collection of Claims Against Issuer. The
Indenture Trustee shall comply with Section 311(a) of the TIA, excluding any
creditor relationship listed in Section 311(b) of the TIA. A Trustee who has
resigned or been removed shall be subject to TIA ss. 311(a) to the extent
indicated

                                       42

          SECTION 6.13. Representations and Warranties of the Indenture Trustee.
The Indenture Trustee represents and warrants to the Issuer and the Note Insurer
as follows:

          (a) Due Organization. The Indenture Trustee is a national banking
association in good standing under the laws of the United States and is duly
authorized and licensed under applicable law to conduct its business as
presently conducted.

          (b) Corporate Power. The Indenture Trustee has all requisite right,
power and authority to execute and deliver this Indenture and to perform all of
its duties as Indenture Trustee hereunder.

          (c) Due Authorization. The execution and delivery by the Indenture
Trustee of this Indenture and the other Basic Documents to which it is a party,
and the performance by the Indenture Trustee of its duties hereunder and
thereunder, have been duly authorized by all necessary corporate proceedings and
no further approvals or filings, including any governmental approvals, are
required for the valid execution and delivery by the Indenture Trustee, or the
performance by the Indenture Trustee, of this Indenture and such other Basic
Documents.

          SECTION 6.14. Valid and Binding Indenture. The Indenture Trustee has
duly executed and delivered this Indenture and each other Basic Document to
which it is a party, and each of this Indenture and each such other Basic
Document constitutes the legal, valid and binding obligation of the Indenture
Trustee, enforceable against the Indenture Trustee in accordance with its terms,
except as (i) such enforceability may be limited by bankruptcy, insolvency,
reorganization and similar laws relating to or affecting the enforcement of
creditors' rights generally and (ii) the availability of equitable remedies may
be limited by equitable principles of general applicability.

          SECTION 6.15. Waiver of Setoffs. The Indenture Trustee hereby
expressly waives any and all rights of setoff that the Indenture Trustee may
otherwise at any time have under applicable law with respect to any Account and
agrees that amounts in the Accounts shall at all times be held and applied
solely in accordance with the provisions hereof.

          SECTION 6.16. Control by the Controlling Party. The Indenture Trustee
shall comply with notices and instructions given by the Issuer only if
accompanied by the written consent of the Controlling Party, except that if any
Event of Default shall have occurred and be continuing, the Indenture Trustee
shall act upon and comply with notices and instructions given by the Controlling
Party alone in the place and stead of the Issuer.

                                  ARTICLE VII

                      Noteholders' Lists and Communications

          SECTION 7.1. Issuer To Furnish To Indenture Trustee Names and
Addresses of Noteholders. The Issuer will furnish or cause to be furnished to
the Indenture Trustee (a) not more than five days after the earlier of (i) each
Record Date and (ii) three months after the last Record Date, a list, in such
form as the Indenture Trustee may reasonably require, of the names and addresses
of the Noteholders and the Class C Certificateholder as of such Record Date, (b)
at such other times as the Indenture Trustee may request in writing, within
thirty (30) days after receipt by the Issuer of any such request, a list of
similar form and content as of a date not more

                                       43

than 10 days prior to the time such list is furnished; provided, however, that
so long as the Indenture Trustee is the Note Registrar, no such list shall be
required to be furnished. If definitive Notes have been issued, the Indenture
Trustee or, if the Indenture Trustee is not the Note Registrar, the Issuer shall
furnish to the Note Insurer in writing on an annual basis on each June 30 and at
such other times as the Note Insurer may request a copy of the list.

          SECTION 7.2. Preservation of Information; Communications to
Noteholders.

          (a) The Indenture Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Noteholders contained in
the most recent list furnished to the Indenture Trustee as provided in Section
7.1 and the names and addresses of Noteholders received by the Indenture Trustee
in its capacity as Note Registrar. The Indenture Trustee may destroy any list
furnished to it as provided in such Section 7.1 upon receipt of a new list so
furnished.

          (b) Noteholders may communicate, pursuant to Section 312(b) of the
TIA, with other Noteholders with respect to their rights under this Indenture or
under the Notes.

          (c) The Issuer, the Indenture Trustee and the Note Registrar shall
have the protection of Section 312(c) of the TIA.

          SECTION 7.3. Reports by Issuer.

          (a) The Issuer shall:

          (i) file with the Indenture Trustee, within 15 days after the Issuer
     is required to file the same with the Commission, copies of the annual
     reports and of the information, documents and other reports (or copies of
     such portions of any of the foregoing as the Commission may from time to
     time by rules and regulations prescribe) which the Issuer may be required
     to file with the Commission pursuant to Section 13 or 15(d) of the Exchange
     Act;

          (ii) file with the Indenture Trustee and the Commission in accordance
     with rules and regulations prescribed from time to time by the Commission
     such additional information, documents and reports with respect to
     compliance by the Issuer with the conditions and covenants of this
     Indenture as may be required from time to time by such rules and
     regulations; and

          (iii) supply to the Indenture Trustee (and the Indenture Trustee shall
     transmit by mail to all Class A Noteholders described in Section 313(c) of
     the TIA) such summaries of any information, documents and reports required
     to be filed by the Issuer pursuant to clauses (i) and (ii) of this Section
     7.3(a) as may be required by rules and regulations prescribed from time to
     time by the Commission.

          (b) Unless the Issuer otherwise determines, the fiscal year of the
Issuer shall end on December 31 of each year.

          SECTION 7.4. Reports by Indenture Trustee. If required by Section
313(a) of the TIA, within 60 days after the end of each year, commencing with
the year ended December

                                       44

31, 2005, the Indenture Trustee shall mail to each Class A Noteholder as
required by Section 313(c) of the TIA a brief report dated a of such date that
complies with Section 313(a) of the TIA. The Indenture Trustee shall also comply
with Section 313(b) of the TIA.

          A copy of each report at the time of its mailing to Class A
Noteholders shall be filed by the Indenture Trustee with the Commission and each
stock exchange, if any, on which the Class A Notes are listed. The Issuer shall
notify the Indenture Trustee if and when the Class A Notes are listed on any
stock exchange.

                                  ARTICLE VIII

                          Collection of Money; Releases

          SECTION 8.1. Collection of Money. Except as otherwise expressly
provided herein, the Indenture Trustee may demand payment or delivery of, and
shall receive and collect, directly and without intervention or assistance of
any fiscal agent or other intermediary, all money and other property payable to
or receivable by the Indenture Trustee pursuant to this Indenture and the Sale
and Servicing Agreement. The Indenture Trustee shall apply all such money
received by it, or cause the Trust Collateral Agent to apply all money received
by it, as provided in this Indenture and the Sale and Servicing Agreement.
Except as otherwise expressly provided in this Indenture or in the Sale and
Servicing Agreement, if any default occurs in the making of any payment or
performance under any agreement or instrument that is part of the Pledged
Property, the Indenture Trustee may take such action as may be appropriate to
enforce such payment or performance, including the institution and prosecution
of appropriate proceedings. Any such action shall be without prejudice to any
right to claim a Default or Event of Default under this Indenture and any right
to proceed thereafter as provided in Article V.

          SECTION 8.2. Release of Pledged Property(a) Subject to the payment of
its fees and expenses and other amounts pursuant to Section 6.7, the Indenture
Trustee may, and when required by the provisions of this Indenture shall,
execute instruments to release property from the lien of this Indenture, in a
manner and under circumstances that are not inconsistent with the provisions of
this Indenture. No party relying upon an instrument executed by the Indenture
Trustee as provided in this Article VIII shall be bound to ascertain the
Indenture Trustee's authority, inquire into the satisfaction of any conditions
precedent or see to the application of any moneys.

          (b) The Indenture Trustee shall, at such time as there are no Notes
outstanding, the Class C Certificate is no longer outstanding and all amounts
due to the Class C Certificateholder have been paid in full, all amounts owing
to the Note Insurer under the Basic Documents have been paid and all sums due
the Indenture Trustee pursuant to Section 6.7 have been paid, release the
Pledged Property from the lien of this Indenture and release to the Issuer or
any other Person entitled thereto any funds then on deposit in the Accounts. The
Indenture Trustee shall release property from the lien of this Indenture
pursuant to this Section 8.2(b) only upon receipt of an Issuer Request
accompanied by an Officer's Certificate and an Opinion of Counsel and (if
required by the TIA) Independent Certificates in accordance with Section 314(c)
and Section 314(d)(1) of the TIA.

                                       45

          SECTION 8.3. Opinion of Counsel. The Indenture Trustee shall receive
at least seven days' notice when requested by the Issuer to take any action
pursuant to Section 8.2(a), accompanied by copies of any instruments involved,
and the Indenture Trustee shall also require as a condition to such action, an
Opinion of Counsel in form and substance satisfactory to the Indenture Trustee,
stating the legal effect of any such action, outlining the steps required to
complete the same, and concluding that all conditions precedent to the taking of
such action have been complied with and such action will not materially and
adversely impair the security for the Notes or the Class C Certificate or the
rights of the Holders thereof in contravention of the provisions of this
Indenture; provided, however, that such Opinion of Counsel shall not be required
to express an opinion as to the fair value of the Pledged Property. Counsel
rendering any such opinion may rely, without independent investigation, on the
accuracy and validity of any certificate or other instrument delivered to the
Indenture Trustee in connection with any such action.

                                   ARTICLE IX

                             Supplemental Indentures

          SECTION 9.1. Supplemental Indentures Without Consent of Noteholders.
Without the consent of the Holders of any Notes but with the prior written
consent of the Note Insurer (unless a Note Insurer Default shall have occurred
and be continuing) and with prior notice to the Rating Agencies and the Class C
Certificateholder by the Issuer, as evidenced to the Indenture Trustee, the
Issuer and the Indenture Trustee, when authorized by an Issuer Order, at any
time and from time to time, may enter into one or more indentures supplemental
hereto (which shall conform to the provisions of the TIA as in force at the date
of the execution thereof), in form satisfactory to the Indenture Trustee, for
any of the following purposes:

          (i) to correct or amplify the description of any property at any time
     subject to the lien of this Indenture, or better to assure, convey and
     confirm unto the Indenture Trustee any property subject or required to be
     subjected to the lien of this Indenture, or to subject to the lien of this
     Indenture additional property;

          (ii) to evidence the succession, in compliance with the applicable
     provisions hereof, of another person to the Issuer, and the assumption by
     any such successor of the covenants of the Issuer herein and in the Notes
     or the Class C Certificates contained;

          (iii) to add to the covenants of the Issuer, for the benefit of the
     Holders of the Notes and the Class C Certificate, or to surrender any right
     or power herein conferred upon the Issuer;

          (iv) to convey, transfer, assign, mortgage or pledge any property to
     or with the Indenture Trustee;

          (v) to cure any ambiguity, to correct or supplement any provision
     herein or in any supplemental indenture which may be inconsistent with any
     other provision herein or in any supplemental indenture or to make any
     other provisions with respect to matters or questions arising under this
     Indenture or in any supplemental indenture; provided that such action shall
     not adversely affect in any material respect the interests of the Holders

                                       46

     of the Notes, as evidenced by satisfaction of the Rating Agency Condition
     with respect to such supplemental indenture; or

          (vi) to evidence and provide for the acceptance of the appointment
     hereunder by a successor Indenture Trustee with respect to the Notes and
     the Class C Certificate and to add to or change any of the provisions of
     this Indenture as shall be necessary to facilitate the administration of
     the trusts hereunder by more than one trustee, pursuant to the requirements
     of Article VI.

          (vii) to modify, eliminate or add to the provisions of this Indenture
     to such extent as shall be necessary to effect the qualification of this
     Indenture under the TIA or under any similar federal statute hereafter
     enacted and to add to this Indenture such other provisions as may be
     expressly required by the TIA.

          The Indenture shall not be amended or modified without the prior
written consent of the Class C Certificateholder (to the extent such Class C
Certificate has not been paid in full) if the result of such amendment or
modification is (a) to reduce or change the priority of payments payable to the
Class C Certificateholder; (b) to accelerate or postpone the scheduled date of
any payment payable to the Class C Certificateholder; or (c) to modify any of
the definitions in the Basic Documents which would have the effect of any of the
forgoing.

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

          SECTION 9.2. Supplemental Indentures with Consent of Noteholders. The
Issuer and the Indenture Trustee, when authorized by an Issuer Order, also may,
with prior notice to the Rating Agencies, with the prior written consent of the
Note Insurer (or, if a Note Insurer Default shall have occurred and be
continuing, with the consent of the Majorityholders), enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to, or
changing in any manner or eliminating any of the provisions of, this Indenture
or of modifying in any manner the rights of the Holders of the Notes under this
Indenture; provided, however, that, subject to the express rights of the Note
Insurer under the Basic Documents, no such supplemental indenture shall, without
the consent of the Holder of each outstanding Note affected thereby and the
Class C Certificateholder, if affected thereby:

          (i) change the date of payment of any installment of principal of,
     interest on or other amounts with respect to any Note or the Class C
     Certificate, or reduce the principal amount thereof, the Note Rate, the
     Class C Certificate Interest Rate or the Class C Supplemental Interest Rate
     thereon or the Redemption Price with respect to the Notes, change the
     provision of this Indenture relating to the application of collections on,
     or the proceeds of the sale of, the Pledged Property to payment of
     principal of or interest on the Notes, or change any place of payment
     where, or the coin or currency in which, any Note or the Class C
     Certificate or the interest thereon is payable;

          (ii) impair the right to institute suit for the enforcement of the
     provisions of this Indenture requiring the application of funds available
     therefor, as provided in Article V, to the payment of any such amount due
     on the Notes or the Class C Certificate on or

                                       47

     after the respective due dates thereof (or, in the case of redemption, on
     or after the Redemption Date);

          (iii) reduce the percentage of the outstanding Note Balance of the
     Notes, or the principal balance of the Class C Certificate, the consent of
     the Holders of which is required for any such supplemental indenture, or
     the consent of the Holders of which is required for any waiver of
     compliance with certain provisions of this Indenture or certain defaults
     hereunder and their consequences provided for in this Indenture;

          (iv) reduce the percentage of the outstanding Note Balance of the
     Notes, or the principal balance of the Class C Certificate, required to
     direct the Indenture Trustee to direct the Issuer to sell or liquidate the
     Pledged Property pursuant to Section 5.4;

          (v) modify any provision of this Section except to increase any
     percentage specified herein or to provide that certain additional
     provisions of this Indenture or the Basic Documents cannot be modified or
     waived without the consent of the Holder of each Outstanding Note or the
     Class C Certificate affected thereby;

          (vi) modify any of the provisions of this Indenture in such manner as
     to affect the calculation of the amount of any payment of interest or
     principal due on any Note or the Class C Certificate on any Payment Date
     (including the calculation of any of the individual components of such
     calculation) or to affect the rights of the Noteholders to the benefit of
     any provisions for the mandatory redemption of the Notes contained herein;
     or

          (vii) permit the creation of any lien ranking prior to or on a parity
     with the lien of this Indenture with respect to any part of the Pledged
     Property or, except as otherwise permitted or contemplated herein or in any
     of the Basic Documents, terminate the lien of this Indenture on any
     property at any time subject hereto or deprive the Holder of any Note or
     the Class C Certificate of the security provided by the lien of this
     Indenture.

          The Indenture Trustee may determine whether or not any Notes or the
Class C Certificate would be affected by any supplemental indenture and any such
determination shall be conclusive upon the Holders of all Notes and the Class C
Certificate, whether theretofore or thereafter authenticated and delivered
hereunder. The Indenture Trustee shall not be liable for any such determination
made in good faith.

          It shall not be necessary for any Act of Noteholders under this
Section to approve the particular form of any proposed supplemental indenture,
but it shall be sufficient if such Act shall approve the substance thereof.

          Promptly after the execution by the Issuer and the Indenture Trustee
of any supplemental indenture pursuant to this Section, the Indenture Trustee
shall mail to the Holders of the Notes and the Class C Certificateholder to
which such amendment or supplemental indenture relates a notice setting forth in
general terms the substance of such supplemental indenture. Any failure of the
Indenture Trustee to mail such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such supplemental
indenture.

                                       48

          SECTION 9.3. Execution of Supplemental Indentures. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the amendments or modifications thereby of the
trusts created by this Indenture, the Indenture Trustee shall be entitled to
receive, and shall be fully protected in relying upon, an Opinion of Counsel
stating that the execution of such supplemental indenture is authorized or
permitted by this Indenture. The Indenture Trustee may, but shall not be
obligated to, enter into any such supplemental indenture that affects the
Indenture Trustee's own rights, duties, liabilities or immunities under this
Indenture or otherwise.

          SECTION 9.4. Effect of Supplemental Indenture. Upon the execution of
any supplemental indenture pursuant to the provisions hereof, this Indenture
shall be and be deemed to be modified and amended in accordance therewith with
respect to the Notes or the Class C Certificate affected thereby, and the
respective rights, limitations of rights, obligations, duties, liabilities and
immunities under this Indenture of the Indenture Trustee, the Issuer and the
Holders of the Notes and the Class C Certificate shall thereafter be determined,
exercised and enforced hereunder subject in all respects to such modifications
and amendments, and all the terms and conditions of any such supplemental
indenture shall be and be deemed to be part of the terms and conditions of this
Indenture for any and all purposes.

          SECTION 9.5. Conformity With Trust Indenture Act. Every amendment of
this Indenture and every supplemental indenture executed pursuant to this
Article IX shall conform to the requirements of the TIA as then in effect so
long as this Indenture shall then be qualified under the TIA.

          SECTION 9.6. Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and if required by the Indenture Trustee shall,
bear a notation in form approved by the Indenture Trustee as to any matter
provided for in such supplemental indenture. If the Issuer or the Indenture
Trustee shall so determine, new Notes so modified as to conform, in the opinion
of the Indenture Trustee and the Issuer, to any such supplemental indenture may
be prepared and executed by the Issuer and authenticated and delivered by the
Indenture Trustee in exchange for Outstanding Notes.

                                   ARTICLE X

                               Redemption of Notes

          SECTION 10.1. Redemption. (a) The Notes and the Class C Certificate
are subject to redemption in whole, but not in part, by the Class R
Certificateholder on any Payment Date occurring on or after the date on which
the outstanding Pool Balance is less than or equal to 10% of the sum of the
Original Pool Balance plus the Original Pre-Funded Amount, at a price equal to
the Redemption Price. If the Notes are to be redeemed pursuant to this Section
10.1(a), the Class R Certificateholder will be required to furnish notice of
such election to the Indenture Trustee not later than the end of the Collection
Period for the related Payment Date and deposit with the Indenture Trustee in
the Note Account the Redemption Price of the Notes and/or the Class C
Certificate to be redeemed, plus any amounts owed to the Note Insurer under the
Insurance Agreement and all amounts owed to the Indenture Trustee under this
Indenture; whereupon all such Notes and/or the Class C Certificate shall be due
and payable on the

                                       49

Redemption Date upon the furnishing of a notice complying with Section 10.2 to
each Holder of Notes and/or the Class C Certificateholder. The Indenture Trustee
shall furnish the Note Insurer and the Rating Agencies notice of such
redemption.

          (b) In the event that on the Final Funding Period Payment Date the
remaining Pre-Funded Amount after giving effect to the purchase by the
Transferor and the conveyance to the Trust of all Subsequent Receivables during
the Funding Period, including any such purchase on the last day of the Funding
Period, is greater than zero, the Class A Notes will be redeemed pursuant to
Section 5.6(c)(iv) of the Sale and Servicing Agreement, in an amount equal to
the Mandatory Special Redemption.

          SECTION 10.2. Form of Redemption Notice. Notice of redemption under
Section 10.1(a) shall be given by the Indenture Trustee by facsimile or by
first-class mail, postage prepaid, transmitted or mailed prior to the applicable
Redemption Date to each Holder of Notes and/or the Class C Certificateholder, as
of the close of business on the Record Date preceding the applicable Redemption
Date, at such Holder's address appearing in the Note Register.

          All notices of redemption shall state:

          (i) the Redemption Date;

          (ii) the Redemption Price;

          (iii) that the Record Date otherwise applicable to such Redemption
     Date is not applicable and that payments shall be made only upon
     presentation and surrender of such Notes and/or the Class C
     Certificateholder and the place where such Notes and/or the Class C
     Certificateholder are to be surrendered for payment of the Redemption Price
     (which shall be the office or agency of the Issuer to be maintained as
     provided in Section 3.2); and

          (iv) that interest on the Notes shall cease to accrue on the
     Redemption Date.

          Notice of redemption of the Notes and/or the Class C Certificateholder
shall be given by the Indenture Trustee in the name and at the expense of the
Issuer. Failure to give notice of redemption, or any defect therein, to any
Holder of any Note and/or Class C Certificateholder shall not impair or affect
the validity of the redemption of any other Note or the Class C Certificate.

          SECTION 10.3. Notes Payable on Redemption Date. The Notes and Class C
Certificate to be redeemed shall, following notice of redemption as required by
Section 10.2, on the Redemption Date become due and payable at the Redemption
Price and (unless the Class R Certificateholder shall default in the payment of
the Redemption Price) no interest shall accrue on the Redemption Price for any
period after the date to which accrued interest is calculated for purposes of
calculating the Redemption Price.

                                       50

                                   ARTICLE XI

                                  Miscellaneous

          SECTION 11.1. Compliance Certificates and Opinions, etc. (a) Upon any
application or request by the Issuer to the Indenture Trustee to take any action
under any provision of this Indenture, the Issuer shall furnish to the Indenture
Trustee and to the Note Insurer (i) an Officer's Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with, (ii) an Opinion of Counsel stating that
in the opinion of such counsel all such conditions precedent, if any, have been
complied with, except that, in the case of any such application or request as to
which the furnishing of such documents is specifically required by any provision
of this Indenture, no additional certificate or opinion need be furnished and
(iii) (if required by the TIA) an Independent Certificate from a firm of
certified public accountants.

          Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

          (i) a statement that each signatory of such certificate or opinion has
     read or has caused to be read such covenant or condition and the
     definitions herein relating thereto;

          (ii) a brief statement as to the nature and scope of the examination
     or investigation upon which the statements or opinions contained in such
     certificate or opinion are based;

          (iii) a statement that, in the opinion of each such signatory, such
     signatory has made such examination or investigation as is necessary to
     enable such signatory to express an informed opinion as to whether or not
     such covenant or condition has been complied with; and

          (iv) a statement as to whether, in the opinion of each such signatory
     such condition or covenant has been complied with.

          (b) Prior to the deposit of any Pledged Property or other property or
securities with the Indenture Trustee that is to be made the basis for the
release of any property or securities subject to the lien of this Indenture, the
Issuer shall, in addition to any obligation imposed in Section 11.1(a) or
elsewhere in this Indenture, furnish to the Indenture Trustee and the Note
Insurer an Officer's Certificate certifying or stating the opinion of each
person signing such certificate as to the fair value (within 90 days of such
deposit) to the Issuer of the Pledged Property or other property or securities
to be so deposited.

          (i) Whenever the Issuer is required to furnish to the Indenture
     Trustee and the Note Insurer an Officer's Certificate certifying or stating
     the opinion of any signer thereof as to the matters described in clause (i)
     above, the Issuer shall also deliver to the Indenture Trustee and the Note
     Insurer an Independent Certificate as to the same matters, if the fair
     value to the Issuer of the securities to be so deposited and of all other
     such securities made the basis of any such withdrawal or release since the
     commencement of the then-current fiscal year of the Issuer, as set forth in
     the certificates delivered pursuant

                                       51

     to clause (i) above and this clause (ii), is 10% or more of the outstanding
     Note Balance of the Notes, but such a certificate need not be furnished
     with respect to any securities so deposited, if the fair value thereof to
     the Issuer as set forth in the related Officer's Certificate is less than
     $25,000 or less than 1% of the outstanding Note Balance of the Notes.

          (ii) Other than with respect to the release of any Purchased
     Receivables or Liquidated Receivables or any Receivable that has been paid
     in full by or on behalf of the related Obligor, whenever any property or
     securities are to be released from the lien of this Indenture, the Issuer
     shall also furnish to the Indenture Trustee and the Note Insurer an
     Officer's Certificate certifying or stating the opinion of each person
     signing such certificate as to the fair value (within ninety (90) days of
     such release) of the property or securities proposed to be released and
     stating that in the opinion of such person the proposed release will not
     impair the security under this Indenture in contravention of the provisions
     hereof.

          (iii) Whenever the Issuer is required to furnish to the Indenture
     Trustee and the Note Insurer an Officer's Certificate certifying or stating
     the opinion of any signer thereof as to the matters described in clause
     (iii) above, the Issuer shall also furnish to the Indenture Trustee and the
     Note Insurer an Independent Certificate as to the same matters if the fair
     value of the property or securities and of all other property other than
     Purchased Receivables and Defaulted Receivables, or securities released
     from the lien of this Indenture since the commencement of the then current
     calendar year, as set forth in the certificates required by clause (iii)
     above and this clause (iv), equals 10% or more of the outstanding Note
     Balance of the Notes, but such certificate need not be furnished in the
     case of any release of property or securities if the fair value thereof as
     set forth in the related Officer's Certificate is less than $25,000 or less
     than 1% of the then outstanding Note Balance of the Notes.

          (iv) Notwithstanding Section 2.11 or any other provision of this
     Section, the Issuer may (A) collect, liquidate, sell or otherwise dispose
     of Receivables as and to the extent permitted or required by the Basic
     Documents and (B) make cash payments out of the Accounts as and to the
     extent permitted or required by the Basic Documents.

          SECTION 11.2. Form of Documents Delivered to Indenture Trustee. In any
case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may certify
or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion
as to such matters in one or several documents.

          Any certificate or opinion of an Authorized Officer of the Issuer may
be based, insofar as it relates to legal matters, upon a certificate or opinion
of, or representations by, counsel, unless such officer knows, or in the
exercise of reasonable care should know, that the certificate or opinion or
representations with respect to the matters upon which his or her certificate or
opinion is based are erroneous. Any such certificate of an Authorized Officer or
Opinion of Counsel may be based, insofar as it relates to factual matters, upon
a certificate or

                                       52

opinion of, or representations by, an officer or officers of the Servicer, the
Transferor or the Issuer, stating that the information with respect to such
factual matters is in the possession of the Servicer, the Transferor or the
Issuer, unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such
matters are erroneous.

          Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

          Whenever in this Indenture, in connection with any application or
certificate or report to the Indenture Trustee, it is provided that the Issuer
shall deliver any document as a condition of the granting of such application,
or as evidence of the Issuer's compliance with any term hereof, it is intended
that the truth and accuracy, at the time of the granting of such application or
at the effective date of such certificate or report (as the case may be), of the
facts and opinions stated in such document shall in such case be conditions
precedent to the right of the Issuer to have such application granted or to the
sufficiency of such certificate or report. The foregoing shall not, however, be
construed to affect the Indenture Trustee's right to rely upon the truth and
accuracy of any statement or opinion contained in any such document as provided
in Article VI.

          SECTION 11.3. Acts of Noteholders. (a) Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given or taken by Noteholders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such Noteholders in person or by agents duly appointed in writing; and except as
herein otherwise expressly provided such action shall become effective when such
instrument or instruments are delivered to the Indenture Trustee, and, where it
is hereby expressly required, to the Issuer. Such instrument or instruments (and
the action embodied therein and evidenced thereby) are herein sometimes referred
to as the "Act" of the Noteholders signing such instrument or instruments. Proof
of execution of any such instrument or of a writing appointing any such agent
shall be sufficient for any purpose of this Indenture and (subject to Section
6.1) conclusive in favor of the Indenture Trustee and the Issuer, if made in the
manner provided in this Section.

          (b) The fact and date of the execution by any person of any such
instrument or writing may be proved in any customary manner of the Indenture
Trustee.

          (c) The ownership of Notes shall be proved by the Note Register.

          (d) Any request, demand, authorization, direction, notice, consent,
waiver or other action by the Holder of any Notes shall bind the Holder of every
Note issued upon the registration thereof or in exchange therefor or in lieu
thereof, in respect of anything done, omitted or suffered to be done by the
Indenture Trustee or the Issuer in reliance thereon, whether or not notation of
such action is made upon such Note.

                                       53

          SECTION 11.4. Notices, etc., to Indenture Trustee, Issuer, the Class C
Certificateholder and Rating Agencies. Any request, demand, authorization,
direction, notice, consent, waiver, instruction or Act of Noteholders or other
documents provided or permitted by this Indenture to be made upon, given or
furnished to or filed with:

          (a) The Indenture Trustee by any Noteholder or the Class C
Certificateholder or by the Issuer shall be sufficient for every purpose
hereunder if personally delivered, delivered by overnight courier or mailed
certified mail, return receipt requested and shall be deemed to have been duly
given upon receipt to the Indenture Trustee at its Corporate Trust Office, or

          (b) The Issuer by the Indenture Trustee or by any Noteholder or the
Class C Certificateholder shall be sufficient for every purpose hereunder if
personally delivered, delivered by overnight courier or mailed certified mail,
return receipt requested and shall deemed to have been duly given upon receipt
to the Issuer addressed to: Long Beach Acceptance Auto Receivables Trust 2004-C,
in care of Wilmington Trust Company, Rodney Square North, 1100 North Market
Street, Wilmington, Delaware 19890-0001, Attention: Corporate Trust
Administration (Telecopy: (302) 651-8882), or at any other address previously
furnished in writing to the Indenture Trustee by Issuer. The Issuer shall
promptly transmit any notice received by it from the Noteholders to the
Indenture Trustee and the Class C Certificateholder.

          (c) The Note Insurer by the Issuer or the Indenture Trustee shall be
sufficient for any purpose hereunder if in writing and mailed by registered mail
or personally delivered or telexed or telecopied to the recipient as follows:

To the Note Insurer:    Financial Security Assurance Inc.
                        350 Park Avenue
                        New York, NY 10022
                        Attention:  Transaction Oversight
                        Re: Long Beach Acceptance Auto Receivables Trust 2004-C
                        Telex No.: (212) 688-3101
                        Confirmation: (212) 826-0100
                        Telecopy Nos.: (212) 339-3518 or (212) 339-3529

                        (in each case in which notice or other
                        communication to the Note Insurer refers to an
                        Event of Default, a claim on the Policy or with
                        respect to which failure on the part of the Note
                        Insurer to respond shall be deemed to constitute
                        consent or acceptance, then a copy of such notice
                        or other communication should also be sent to the
                        attention of the General Counsel and the
                        Head-Financial Guaranty Group "URGENT MATERIAL
                        ENCLOSED").

To the Class C Certificateholder:     Greenwich Capital Financial Products, Inc
                                      600 Steamboat Road
                                      Greenwich, Connecticut 06830
                                      Attention:  Asset-Backed Finance
                                      Telephone:  (203) 622-5666
                                      Facsimile:  (203) 618-2164

                                       54

                                      With a copy to:

                                      Greenwich Capital Financial Products, Inc.
                                      600 Steamboat Road
                                      Greenwich, Connecticut 06830
                                      Attention:  General Counsel
                                      Telephone:  (203) 625-6065
                                      Facsimile:  (203) 629-4571

          Notices required to be given to the Rating Agencies by the Issuer, the
Indenture Trustee or the Owner Trustee shall be in writing, personally
delivered, delivered by overnight courier, mailed certified mail, return receipt
requested or, in the case of S&P, delivered electronically to (i) in the case of
Moody's, at the following address: Moody's Investors Service, Inc., 99 Church
Street, New York, New York 10004 and (ii) in the case of S&P, with respect to
any information not available in electronic format, at the following address:
Standard & Poor's Ratings Services, 55 Water Street, 41st Floor, New York, New
York 10041, Attention of ABS Surveillance Group and with respect to any
information available in electronic format shall be delivered electronically to
Servicer_reports@sandp.com; or as to each of the foregoing, at such other
address as shall be designated by written notice to the other parties.

          SECTION 11.5. Notices to Noteholders; Waiver. Where this Indenture
provides for notice to Noteholders or the Class C Certificateholder, of any
event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class, postage prepaid to
each Noteholder or the Class C Certificateholder, affected by such event, at his
address as it appears on the Note Register or the Certificate Register, as the
case may be, not later than the latest date, and not earlier than the earliest
date, prescribed for the giving of such notice. In any case where notice to
Noteholders or the Class C Certificateholder is given by mail, neither the
failure to mail such notice nor any defect in any notice so mailed to any
particular Noteholder or the Class C Certificateholder shall affect the
sufficiency of such notice with respect to other Noteholders or the Class C
Certificateholder, and any notice that is mailed in the manner herein provided
shall conclusively be presumed to have been duly given.

          Where this Indenture provides for notice in any manner, such notice
may be waived in writing by any Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by Noteholders shall be filed with the Indenture
Trustee but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such a waiver.

          In case, by reason of the suspension of regular mail service as a
result of a strike, work stoppage or similar activity, it shall be impractical
to mail notice of any event to Noteholders or the Class C Certificateholder when
such notice is required to be given pursuant to any provision of this Indenture,
then any manner of giving such notice as shall be satisfactory to the Indenture
Trustee shall be deemed to be a sufficient giving of such notice.

          Where this Indenture provides for notice to the Rating Agencies,
failure to give such notice shall not affect any other rights or obligations
created hereunder, and shall not under any circumstance constitute a Default or
Event of Default.

                                       55

          SECTION 11.6. Conflict with Trust Indenture Act. If any provision
hereof limits, qualifies or conflicts with another provision hereof that is
required to be included in this Indenture by any of the provisions of the TIA,
such required provision shall control.

          The provisions of TIA ss.ss. 310 through 317 that impose duties on any
person (including the provisions automatically deemed included herein unless
expressly excluded by this Indenture) are a part of and govern this Indenture,
whether or not physically contained herein.

          SECTION 11.7. Effect of Headings and Table of Contents. The Article
and Section headings herein and the Table of Contents are for convenience only
and shall not affect the construction hereof.

          SECTION 11.8. Successors and Assigns. All covenants and agreements in
this Indenture and the Notes by the Issuer shall bind its successors and
assigns, whether so expressed or not. All agreements of the Indenture Trustee in
this Indenture shall bind its successors, co-trustees and agents of the
Indenture Trustee.

          SECTION 11.9. Separability. In case any provision in this Indenture or
in the Notes shall be invalid, illegal or unenforceable, the validity, legality,
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

          SECTION 11.10. Benefits of Indenture. The Note Insurer and its
successors and assigns shall be third-party beneficiaries to the provisions of
this Indenture, and shall be entitled to rely upon and directly to enforce such
provisions of this Indenture so long as no Note Insurer Default shall have
occurred and be continuing. Nothing in this Indenture or in the Notes, express
or implied, shall give to any Person, other than the parties hereto and their
successors hereunder, and the Noteholders, the Class C Certificateholder and any
other party secured hereunder, and any other person with an ownership interest
in any part of the Pledged Property, any benefit or any legal or equitable
right, remedy or claim under this Indenture. The Note Insurer may disclaim any
of its rights and powers under this Indenture (in which case the Indenture
Trustee may exercise such right or power hereunder), but not its duties and
obligations under the Policy, upon delivery of a written notice to the Indenture
Trustee.

          SECTION 11.11. Legal Holidays. In any case where the date on which any
payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes or this Indenture) payment need not be made on such date,
but may be made on the next succeeding Business Day with the same force and
effect as if made on the date an which nominally due, and no interest shall
accrue for the period from and after any such nominal date.

          SECTION 11.12. GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH, AND THIS INDENTURE AND ALL MATTERS ARISING OUT OF OR RELATING
IN ANY WAY TO THIS INDENTURE SHALL BE GOVERNED BY, THE LAWS OF THE STATE OF NEW
YORK.

          SECTION 11.13. Counterparts. This Indenture may be executed in any
number of counterparts, each of which so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the
same instrument.

                                       56

          SECTION 11.14. Recording of Indenture. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense accompanied by an Opinion of Counsel
(which may be counsel to the Indenture Trustee or any other counsel reasonably
acceptable to the Indenture Trustee and the Note Insurer) to the effect that
such recording is necessary either for the protection of the Noteholders or any
other person secured hereunder or for the enforcement of any right or remedy
granted to the Indenture Trustee or the Trust Collateral Agent under this
Indenture or the Sale and Servicing Agreement, or the Collateral Agent under the
Spread Account Agreement.

          SECTION 11.15. Trust Obligation.

          (a) No recourse may be taken, directly or indirectly, with respect to
the obligations of the Issuer, the Transferor, the Servicer, the Owner Trustee,
the Trust Collateral Agent or the Indenture Trustee on the Notes or under this
Indenture or any certificate or other writing delivered in connection herewith
or therewith, against (i) the Issuer, the Transferor, the Servicer, the
Indenture Trustee, the Trust Collateral Agent or the Owner Trustee in its
individual capacity, (ii) any owner of a beneficial interest in the Issuer or
(iii) any partner, owner, beneficiary, agent, officer, director, employee or
agent of the Transferor, the Servicer, the Indenture Trustee, the Trust
Collateral Agent or the Owner Trustee in its individual capacity, any holder of
a beneficial interest in the Issuer, the Transferor, the Servicer, the Owner
Trustee, the Trust Collateral Agent or the Indenture Trustee or of any successor
or assign of the Transferor, the Servicer, the Indenture Trustee, the Trust
Collateral Agent or the Owner Trustee in its individual capacity, except in each
case as any such Person may have expressly agreed (it being understood that the
Indenture Trustee, the Trust Collateral Agent and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or call owing to such entity. For all purposes of
this Indenture, in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of the Trust Agreement.

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

          (c) Notwithstanding anything contained herein to the contrary, this
Agreement has been executed and delivered by JPMorgan Chase, not in its
individual capacity but solely as Indenture Trustee and in no event shall
JPMorgan Chase have any liability for the

                                       57

representations, warranties, covenants, agreements or other obligations of the
Issuer hereunder or in any of the certificates, notices or agreements delivered
pursuant hereto, as to all of which recourse shall be had solely to the assets
of the Issuer.

          SECTION 11.16. No Petition. The Indenture Trustee, by entering into
this Indenture, and each Noteholder, by accepting a Note, hereby covenant and
agree that they will not prior to the date that is one year and one day after
the payment in full of all outstanding Notes and the Class C Certificate
institute against the Transferor or the Issuer, or join in any institution
against the Transferor or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings under
any United States federal or State bankruptcy or similar law in connection with
any obligations relating to the Notes, the Class C Certificate, this Indenture
or any of the Basic Documents.

          SECTION 11.17. Inspection. The Issuer agrees that, on reasonable prior
notice, it will permit any representative of the Indenture Trustee or of the
Note Insurer, during the Issuer's normal business hours, to examine all the
books of account, records, reports, and other papers of the Issuer, to make
copies and extracts therefrom, to cause such books to be audited by independent
certified public accountants, and to discuss the Issuer's affairs, finances and
accounts with the Issuer's officers, employees, and independent certified public
accountants, all at such reasonable times and as often as may be reasonably
requested. Notwithstanding anything herein to the contrary, the foregoing shall
not be construed to prohibit (i) disclosure of any and all information that is
or becomes publicly known, (ii) disclosure of any and all information (A) if
required to do so by any applicable statute, law, rule or regulation, (B) to any
government agency or regulatory body having or claiming authority to regulate or
oversee any respects of the Indenture Trustee's business or that of its
affiliates, (C) pursuant to any subpoena, civil investigative demand or similar
demand or request of any court, regulatory authority, arbitrator or arbitration
to which the Indenture Trustee or an affiliate or an officer, director, employer
or shareholder thereof is a party, (D) in any preliminary or final offering
circular, registration statement or contract or other document pertaining to the
transactions contemplated by the Indenture approved in advance by the Servicer
or the Issuer or (E) to any independent or internal auditor, agent, employee or
attorney of the Indenture Trustee having a need to know the same, provided that
the Indenture Trustee advises such recipient of the confidential nature of the
information being disclosed, or (iii) any other disclosure authorized by the
Servicer or the Issuer.

          SECTION 11.18. Rights of Note Insurer as Controlling Party. So long as
no Note Insurer Default has occurred and is continuing, except as otherwise
specifically provided herein, whenever Noteholder action, consent or approval is
required under this Indenture, such action, consent or approval shall be deemed
to have been taken or given on behalf of, and shall be binding upon, all
Noteholders if the Note Insurer agrees to take such action or give such consent
or approval. If a Note Insurer Default has occurred and is continuing, any
provision, including this Section 11.18, which gives the Note Insurer any rights
as Controlling Party shall be inoperative during the period of such Note Insurer
Default and such rights shall instead vest in the Indenture Trustee acting at
the direction of the Majorityholders.

          SECTION 11.19. Effect of Policy Expiration Date. Notwithstanding
anything to the contrary set forth herein, all references to any right of the
Note Insurer to direct, appoint, consent to, accept, approve of, take or omit to
take any action under this Indenture or any other Basic Document shall be
inapplicable at all times after the Policy Expiration Date, and (i) if such

                                       58

reference provides for another party or parties to take or omit to take any such
action following a Note Insurer Default, such party or parties shall also be
entitled to take or omit to take such action following the Policy Expiration
Date and (ii) if such reference does not provide for another party or parties to
take or omit to take any such action following a Note Insurer Default, then the
Indenture Trustee acting at the direction of the Majorityholders shall have the
right to take or omit to take such action following the Policy Expiration Date.
In addition, any other provision of this Indenture or any other Basic Document
which is operative based in whole or in part on whether a Note Insurer Default
has or has not occurred shall, at all times on or after the Policy Expiration
Date, be deemed to refer to whether or not the Policy Expiration Date has
occurred.

                      [THIS SPACE INTENTIONALLY LEFT BLANK]

                                       59

          IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused
this Indenture to be duly executed by their respective officers, hereunto duly
authorized, all as of the day and year first above written.

                           LONG BEACH ACCEPTANCE AUTO
                           RECEIVABLES TRUST 2004-C,

                           By: Wilmington Trust Company, not in its
                           individual capacity but solely as Owner Trustee

                           By: /s/ Patricia A. Evans
                              --------------------------------------------------
                           Name: Patricia A. Evans
                           Title: Assistant Vice President

                           JPMORGAN CHASE BANK, NATIONAL
                           ASSOCIATION, not in its individual capacity but
                           solely as Indenture Trustee

                           By: /s/ Ciriano Emanuele
                              --------------------------------------------------
                           Name: Ciriano Emanuele
                           Title: Assistant Vice President

                        [Signature Page to the Indenture]

                                                                         ANNEX A

                                  DEFINED TERMS

                                                                     EXHIBIT A-1

REGISTERED                                                    $63,000,000
No. RA--1--1

                       SEE REVERSE FOR CERTAIN DEFINITIONS

                                                           CUSIP NO. 542391 BT 3

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

NO TRANSFER OF THIS NOTE SHALL BE PERMITTED TO BE MADE TO ANY PERSON UNLESS THE
INDENTURE TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEREE TO THE EFFECT
THAT EITHER (I) THE TRANSFEREE IS NOT AND IS NOT ACTING ON BEHALF OF OR
INVESTING THE ASSETS OF (A) AN "EMPLOYEE BENEFIT PLAN" (AS DEFINED IN SECTION
3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA")) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA OR (B) A "PLAN"
(AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED (THE "CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE CODE OR (II) A
DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION APPLIES TO THE
TRANSFEREE'S ACQUISITION AND CONTINUED HOLDING OF THIS NOTE. EACH TRANSFEREE OF
A BENEFICIAL INTEREST IN THIS NOTE SHALL BE DEEMED TO MAKE ONE OF THE FOREGOING
REPRESENTATIONS.

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2004-C
                       2.390% ASSET-BACKED NOTE, CLASS A-1

          Long Beach Acceptance Auto Receivables Trust 2004-C, a statutory trust
organized and existing under the laws of the State of Delaware (herein referred
to as the "Issuer"), for value received, hereby promises to pay to CEDE & CO. or
registered assigns, the principal sum of SIXTY THREE MILLION DOLLARS payable on
each Payment Date from the sources and on the terms and conditions set forth
herein and as more fully set forth in the Indenture; provided, however, that the
entire unpaid principal amount of this Class A-1 Note shall be due and payable
on the December 2005 Payment Date (the "Class A-1 Final Scheduled

Payment Date"). The Issuer will pay interest on this Note at the rate per annum
shown above on each Payment Date until the principal of this Note is paid or
made available for payment. Interest on this Note will accrue for each Payment
Date from and including the most recent Payment Date on which interest has been
paid to but excluding such Payment Date or, if no interest has yet been paid,
from and including December 9, 2004 (the "Interest Period"). Interest on this
Note will be computed on the basis of a 360-day year and the actual number of
days elapsed in the interest accrual period (or, with respect to the first
Payment Date, 40 days). Such principal of and interest on this Note shall be
paid in the manner specified on the reverse hereof.

          The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

          The Class A-1 Notes are entitled to the benefits of a financial
guaranty insurance policy (the "Policy") issued by Financial Security Assurance,
Inc. (the "Note Insurer"), pursuant to which the Note Insurer has
unconditionally guaranteed payment to the Class A-1 Noteholders of (i) the Class
A-1 Interest Payment Amount with respect to each Payment Date, (ii) the amount,
if any, by which the outstanding Class A Note Balance (after taking into account
payments of principal on such Payment Date) exceeds the sum of the Pool Balance
as of the last day of the related Collection Period and the remaining Pre-Funded
Amount, if any, with respect to such Payment Date and (iii) the Principal
Payment Amount with respect to the Class A-1 Final Scheduled Payment Date, all
as more fully set forth in the Indenture and the Sale and Servicing Agreement.

          Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

          Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

                                     A-1-2

          IN WITNESS WHEREOF, the Issuer has caused this instrument to be
signed, manually or in facsimile, by its Authorized Officer as of the date set
forth below.

Date: December 9, 2004

                           LONG BEACH ACCEPTANCE AUTO
                           RECEIVABLES TRUST 2004-C

                           By: Wilmington Trust Company, not in its individual
                           capacity but solely as Owner Trustee

                           By:
                              -------------------------------------------------
                           Name:
                           Title:

                                     A-1-3

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

          This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

Date: December 9, 2004         JPMORGAN CHASE BANK, NATIONAL
                               ASSOCIATION, not in its individual capacity but
                               solely as Indenture Trustee

                               By:
                                  ----------------------------------------
                                            Authorized Signatory

                                     A-1-4

                                [REVERSE OF NOTE]

          This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its 2.390% Asset-Backed Notes, Class A-1 (herein called the "Class
A-1 Notes"), issued under an Indenture dated as of December 1, 2004 (such
indenture, as supplemented or amended, is herein called the "Indenture"),
between the Issuer and JPMorgan Chase Bank, National Association, as Indenture
Trustee (the "Indenture Trustee", which term includes any successor Indenture
Trustee under the Indenture) to which Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the Holders of
the Notes. The 3.040% Asset-Backed Notes, Class A-2 (the "Class A-2 Notes"), the
3.402% Asset-Backed Notes, Class A-3 (the "Class A-3 Notes") and the 3.777%
Asset-Backed Notes, Class A-4 (the "Class A-4 Notes" and together with the Class
A-1 Notes, the Class A-2 Notes, and the Class A-3 Notes, the "Notes") have also
been issued under the Indenture. The Notes are subject to all terms of the
Indenture and the Sale and Servicing Agreement. All terms used in this Note that
are defined in the Indenture, as supplemented or amended, shall have the
meanings assigned to them in or pursuant to the Indenture, as so supplemented or
amended.

          The Notes are and will be equally and ratably secured by the
collateral pledged as security therefor as provided in the Indenture.

          Principal of the Class A-1 Notes will be payable on each Payment Date
in an amount described on the face hereof. "Payment Date" means the fifteenth
day of each month, or, if any such date is not a Business Day, the next Business
Day, commencing January 18, 2005. The term "Payment Date," shall be deemed to
include the Class A-1 Final Scheduled Payment Date, the Class A-2 Final
Scheduled Payment Date, the Class A-3 Final Scheduled Payment Date and the Class
A-4 Final Scheduled Payment Date.

          As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note is registrable in the Note Register
upon surrender of this Note for registration of transfer at the offices or
agencies maintained by the Indenture Trustee in its capacity as Note Registrar
or by any successor Note Registrar, in the Borough of Manhattan, The City of New
York, accompanied by a written instrument of transfer in form satisfactory to
the Indenture Trustee and the Note Registrar duly executed by the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Notes of authorized denominations evidencing the same aggregate debt of the
Trust will be issued to the designated transferee.

          The Notes shall be issuable in minimum denominations of one hundred
thousand dollars ($100,000) and integral multiples of one thousand dollars
($1,000) in excess thereof. As provided in the Agreement and subject to certain
limitations set forth therein, Notes are exchangeable for new Notes of
authorized denominations evidencing the same aggregate denomination, as
requested by the Holder surrendering the same. No service charge will be made
for any such registration of transfer or exchange, but the Indenture Trustee may
require payment of a sum sufficient to cover any tax or governmental charges
payable in connection therewith.

                                     A-1-5

          The Indenture Trustee, the Note Registrar, and any agent of the
Indenture Trustee or the Note Registrar may treat the person in whose name this
Note is registered as the owner hereof for all purposes, and neither the
Indenture Trustee, the Note Registrar, nor any such agent shall be affected by
any notice to the contrary.

          The obligations and responsibilities created by the Sale and Servicing
Agreement, the Indenture and the Trust Agreement shall terminate upon the
payment to Noteholders of all amounts required to be paid to them pursuant to
the Indenture and the Sale and Servicing Agreement, the payment of all
Reimbursement Obligations, and the expiration of any preference period with
respect thereto and the disposition of all property held as part of the Trust.
The Class R Certificateholder may redeem the Notes on any Payment Date on or
after the outstanding Pool Balance is less than or equal to 10% of the sum of
the Original Pool Balance plus the Original Pre-Funded Amount at a price
specified in the Indenture.

          The Issuer shall pay interest on overdue installments of interest at
the Class A-1 Note Rate to the extent lawful.

          Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Owner Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Indenture Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Issuer, the Transferor, the Servicer, the Originator, the
Indenture Trustee, Trust Collateral Agent, Collateral Agent, Back-up Servicer,
Custodian or the Owner Trustee in its individual capacity, (ii) any owner of a
beneficial interest in the Issuer or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of the Transferor, the Servicer, the
Originator, the Indenture Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Transferor, the Servicer, the
Originator, the Owner Trustee, Trust Collateral Agent, Collateral Agent, Back-up
Servicer, Custodian or the Indenture Trustee or of any successor or assign of
the Transferor, the Servicer, the Originator, the Indenture Trustee, Trust
Collateral Agent, Collateral Agent, Back-up Servicer, Custodian or the Owner
Trustee in its individual capacity, except as any such Person may have expressly
agreed (it being understood that the Indenture Trustee, Trust Collateral Agent,
Collateral Agent, Back-up Servicer, Custodian and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or call owing to such entity.

          Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note covenants and agrees to treat
the Notes as indebtedness for purposes of federal income, state and local income
and franchise and any other income taxes.

          The Indenture permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Transferor and the rights of the Noteholders under the Indenture at any time by
the Issuer and the Indenture Trustee with the consent of the Note Insurer but,
in certain circumstances, without the consent of the Holders of

                                     A-1-6

Notes. The Indenture also contains provisions permitting the Noteholders
representing specified percentages of the outstanding Note Balance of the Notes,
on behalf of the Holders of all the Notes, to waive compliance by the Issuer
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one of more Predecessor Notes) shall be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note.

          The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

          The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Indenture Trustee and the
Noteholders under the Indenture.

          This Note, the Sale and Servicing Agreement and the Indenture shall be
construed in accordance with the laws of the State of New York, without
reference to its conflict of law provisions, and the obligations, rights and
remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws.

          No reference herein to the Indenture or any of the other Basic
Documents and no provision of this Note or of the Indenture or any of the other
Basic Documents shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place, and rate, and in the coin or currency herein prescribed.

          Anything herein to the contrary notwithstanding, except as expressly
provided in the Indenture or the Basic Documents, neither Wilmington Trust
Company in its individual capacity, any owner of a beneficial interest in the
Issuer, nor any of their respective partners, beneficiaries, agents, officers,
directors, employees or successors or assigns shall be personally liable for,
nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note or the Indenture, it
being expressly understood that said covenants, obligations and indemnifications
have been made by the Issuer for the sole purposes of binding the interests of
the Issuer in the assets of the Issuer. The Holder of this Note by the
acceptance hereof agrees that except as expressly provided in the Indenture or
the Basic Documents, in the case of an Event of Default under the Indenture, the
Holder shall have no claim against any of the foregoing for any deficiency, loss
or claim therefrom; provided, however, that nothing contained herein shall be
taken to prevent recourse to, and enforcement against, the assets of the Issuer
for any and all liabilities, obligations and undertakings contained in the
Indenture or in this Note.

                                     A-1-7

                                   ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

          FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto
               --------------------------------
                (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints, attorney, to transfer said Note on the books kept for registration
thereof, with full power of substitution in the premises.

Dated                                 (2)
     ---------------------------------      ------------------------------------
                                            Signature Guaranteed:

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

--------------------
(2)  NOTE: The signature to this assignment must correspond with the name of the
     registered owner as it appears on the face of the within Note in every
     particular, without alteration, enlargement or any change whatsoever.

                                     A-1-8

                                                                     EXHIBIT A-2

REGISTERED                                               $106,000,000
No. RA--2--1
                       SEE REVERSE FOR CERTAIN DEFINITIONS

                                                         CUSIP NO. 542391 BU 0

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

NO TRANSFER OF THIS NOTE SHALL BE PERMITTED TO BE MADE TO ANY PERSON UNLESS THE
INDENTURE TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEREE TO THE EFFECT
THAT EITHER (I) THE TRANSFEREE IS NOT AND IS NOT ACTING ON BEHALF OF OR
INVESTING THE ASSETS OF (A) AN "EMPLOYEE BENEFIT PLAN" (AS DEFINED IN SECTION
3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA")) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA OR (B) A "PLAN"
(AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED (THE "CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE CODE OR (II) A
DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION APPLIES TO THE
TRANSFEREE'S ACQUISITION AND CONTINUED HOLDING OF THIS NOTE. EACH TRANSFEREE OF
A BENEFICIAL INTEREST IN THIS NOTE SHALL BE DEEMED TO MAKE ONE OF THE FOREGOING
REPRESENTATIONS.

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2004-C
                       3.040% ASSET-BACKED NOTE, CLASS A-2

          Long Beach Acceptance Auto Receivables Trust 2004-C, a statutory trust
organized and existing under the laws of the State of Delaware (herein referred
to as the "Issuer"), for value received, hereby promises to pay to CEDE & CO. or
registered assigns, the principal sum of ONE HUNDRED SIX MILLION DOLLARS payable
on each Payment Date from the sources and on the terms and conditions set forth
herein and as more fully set forth in the Indenture; provided, however, that the
entire unpaid principal amount of this Class A-2 Note

shall be due and payable on the August 2008 Payment Date (the "Class A-2 Final
Scheduled Payment Date"). The Issuer will pay interest on this Note at the rate
per annum shown above on each Payment Date until the principal of this Note is
paid or made available for payment. Interest on this Note will accrue for each
Payment Date from and including the most recent Payment Date on which interest
has been paid to but excluding such Payment Date or, if no interest has yet been
paid, from and including December 9, 2004 (the "Interest Period"). Interest on
this Note will be computed on the basis of a 360-day year consisting of twelve
30 day months (or, with respect to the first Payment Date, 39 days). Such
principal of and interest on this Note shall be paid in the manner specified on
the reverse hereof. Except as otherwise set forth in the Indenture, the rights
of the Class A-2 Noteholders to receive payments of principal on each Payment
Date are subordinated to the rights of the Class A-1 Noteholders to receive
payments in respect of principal, if any, due on such Payment Date.

          The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

          The Class A-2 Notes are entitled to the benefits of a financial
guaranty insurance policy (the "Policy") issued by Financial Security Assurance,
Inc. (the "Note Insurer"), pursuant to which the Note Insurer has
unconditionally guaranteed payment to the Class A-2 Noteholders of (i) the Class
A-2 Interest Payment Amount with respect to each Payment Date, (ii) the amount,
if any, by which the outstanding Class A Note Balance (after taking into account
payments of principal on such Payment Date) exceeds the sum of the Pool Balance
as of the last day of the related Collection Period and the remaining Pre-Funded
Amount, if any, with respect to such Payment Date and (iii) the Principal
Payment Amount with respect to the Class A-2 Final Scheduled Payment Date, all
as more fully set forth in the Indenture and the Sale and Servicing Agreement.

          Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

          Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

                                     A-2-2

          IN WITNESS WHEREOF, the Issuer has caused this instrument to be
signed, manually or in facsimile, by its Authorized Officer as of the date set
forth below.

Date: December 9, 2004

                            LONG BEACH ACCEPTANCE AUTO
                            RECEIVABLES TRUST 2004-C

                            By: Wilmington Trust Company, not in its individual
                            capacity but solely as Owner Trustee

                            By:
                               -------------------------------------------------
                            Name:
                            Title:

                                     A-2-3

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

          This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

Date: December 9, 2004          JPMORGAN CHASE BANK, NATIONAL
                                ASSOCIATION not in its individual capacity but
                                solely as Indenture Trustee

                                By:
                                   -----------------------------------------
                                            Authorized Signatory

                                     A-2-4

                                [REVERSE OF NOTE]

          This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its 3.040% Asset-Backed Notes, Class A-2 (herein called the "Class
A-2 Notes"), issued under an Indenture dated as of December 1, 2004 (such
indenture, as supplemented or amended, is herein called the "Indenture"),
between the Issuer and JPMorgan Chase Bank, National Association, as Indenture
Trustee (the "Indenture Trustee", which term includes any successor Indenture
Trustee under the Indenture) to which Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the Holders of
the Notes. The 2.390% Asset-Backed Notes, Class A-1 (the "Class A-1 Notes"), the
3.402% Asset-Backed Notes, Class A-3 (the "Class A-3 Notes") and the 3.777%
Asset-Backed Notes, Class A-4 (the "Class A-4 Notes" and together with the Class
A-1 Notes, the Class A-2 Notes, and the Class A-3 Notes, the "Notes") have also
been issued under the Indenture. The Notes are subject to all terms of the
Indenture and the Sale and Servicing Agreement. All terms used in this Note that
are defined in the Indenture, as supplemented or amended, shall have the
meanings assigned to them in or pursuant to the Indenture, as so supplemented or
amended.

          The Notes are and will be equally and ratably secured by the
collateral pledged as security therefor as provided in the Indenture.

          Principal of the Class A-2 Notes will be payable on each Payment Date
in an amount described on the face hereof. "Payment Date" means the fifteenth
day of each month, or, if any such date is not a Business Day, the next Business
Day, commencing January 18, 2005. The term "Payment Date," shall be deemed to
include the Class A-1 Final Scheduled Payment Date, the Class A-2 Final
Scheduled Payment Date, the Class A-3 Final Scheduled Payment Date and the Class
A-4 Final Scheduled Payment Date.

          As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note is registrable in the Note Register
upon surrender of this Note for registration of transfer at the offices or
agencies maintained by the Indenture Trustee in its capacity as Note Registrar
or by any successor Note Registrar, in the Borough of Manhattan, The City of New
York, accompanied by a written instrument of transfer in form satisfactory to
the Indenture Trustee and the Note Registrar duly executed by the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Notes of authorized denominations evidencing the same aggregate debt of the
Trust will be issued to the designated transferee.

          The Notes shall be issuable in minimum denominations of one hundred
thousand dollars ($100,000) and integral multiples of one thousand dollars
($1,000) in excess thereof. As provided in the Agreement and subject to certain
limitations set forth therein, Notes are exchangeable for new Notes of
authorized denominations evidencing the same aggregate denomination, as
requested by the Holder surrendering the same. No service charge will be made
for any such registration of transfer or exchange, but the Indenture Trustee may
require payment of a sum sufficient to cover any tax or governmental charges
payable in connection therewith.

                                     A-2-5

          The Indenture Trustee, the Note Registrar, and any agent of the
Indenture Trustee or the Note Registrar may treat the person in whose name this
Note is registered as the owner hereof for all purposes, and neither the
Indenture Trustee, the Note Registrar, nor any such agent shall be affected by
any notice to the contrary.

          The obligations and responsibilities created by the Sale and Servicing
Agreement, the Indenture and the Trust Agreement shall terminate upon the
payment to Noteholders of all amounts required to be paid to them pursuant to
the Indenture and the Sale and Servicing Agreement, the payment of all
Reimbursement Obligations, and the expiration of any preference period with
respect thereto and the disposition of all property held as part of the Trust.
The Class R Certificateholder may redeem the Notes on any Payment Date on or
after the outstanding Pool Balance is less than or equal to 10% of the sum of
the Original Pool Balance plus the Original Pre-Funded Amount at a price
specified in the Indenture.

          The Issuer shall pay interest on overdue installments of interest at
the Class A-2 Note Rate to the extent lawful.

          Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Owner Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Indenture Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Issuer, the Transferor, the Servicer, the Originator, the
Indenture Trustee, Trust Collateral Agent, Collateral Agent, Back-up Servicer,
Custodian or the Owner Trustee in its individual capacity, (ii) any owner of a
beneficial interest in the Issuer or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of the Transferor, the Servicer, the
Originator, the Indenture Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Transferor, the Servicer, the
Originator, the Owner Trustee, Trust Collateral Agent, Collateral Agent, Back-up
Servicer, Custodian or the Indenture Trustee or of any successor or assign of
the Transferor, the Servicer, the Originator, the Indenture Trustee, Trust
Collateral Agent, Collateral Agent, Back-up Servicer, Custodian or the Owner
Trustee in its individual capacity, except as any such Person may have expressly
agreed (it being understood that the Indenture Trustee, Trust Collateral Agent,
Collateral Agent, Back-up Servicer, Custodian and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or call owing to such entity.

          Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note covenants and agrees to treat
the Notes as indebtedness for purposes of federal income, state and local income
and franchise and any other income taxes.

          The Indenture permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Transferor and the rights of the Noteholders under the Indenture at any time by
the Issuer and the Indenture Trustee with the consent of the Note Insurer but,
in certain circumstances, without the consent of the Holders of

                                     A-2-6

Notes. The Indenture also contains provisions permitting the Noteholders
representing specified percentages of the outstanding Note Balance of the Notes,
on behalf of the Holders of all the Notes, to waive compliance by the Issuer
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one of more Predecessor Notes) shall be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note.

          The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

          The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Indenture Trustee and the
Noteholders under the Indenture.

          This Note, the Sale and Servicing Agreement and the Indenture shall be
construed in accordance with the laws of the State of New York, without
reference to its conflict of law provisions, and the obligations, rights and
remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws.

          No reference herein to the Indenture or any of the other Basic
Documents and no provision of this Note or of the Indenture or any of the other
Basic Documents shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place, and rate, and in the coin or currency herein prescribed.

          Anything herein to the contrary notwithstanding, except as expressly
provided in the Indenture or the Basic Documents, neither Wilmington Trust
Company in its individual capacity, any owner of a beneficial interest in the
Issuer, nor any of their respective partners, beneficiaries, agents, officers,
directors, employees or successors or assigns shall be personally liable for,
nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note or the Indenture, it
being expressly understood that said covenants, obligations and indemnifications
have been made by the Issuer for the sole purposes of binding the interests of
the Issuer in the assets of the Issuer. The Holder of this Note by the
acceptance hereof agrees that except as expressly provided in the Indenture or
the Basic Documents, in the case of an Event of Default under the Indenture, the
Holder shall have no claim against any of the foregoing for any deficiency, loss
or claim therefrom; provided, however, that nothing contained herein shall be
taken to prevent recourse to, and enforcement against, the assets of the Issuer
for any and all liabilities, obligations and undertakings contained in the
Indenture or in this Note.

                                     A-2-7

                                   ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

          FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto
               --------------------------------
                (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints, attorney, to transfer said Note on the books kept for registration
thereof, with full power of substitution in the premises.

Dated                               (3)
     ------------------------------      ---------------------------------------
                                         Signature Guaranteed:

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

-----------------
(3)  NOTE: The signature to this assignment must correspond with the name of the
     registered owner as it appears on the face of the within Note in every
     particular, without alteration, enlargement or any change whatsoever.

                                     A-2-8

                                                                     EXHIBIT A-3

REGISTERED                                                     $74,000,000
No. RA--3--1
                       SEE REVERSE FOR CERTAIN DEFINITIONS

                                                          CUSIP NO. 542391 BV 8

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

NO TRANSFER OF THIS NOTE SHALL BE PERMITTED TO BE MADE TO ANY PERSON UNLESS THE
INDENTURE TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEREE TO THE EFFECT
THAT EITHER (I) THE TRANSFEREE IS NOT AND IS NOT ACTING ON BEHALF OF OR
INVESTING THE ASSETS OF (A) AN "EMPLOYEE BENEFIT PLAN" (AS DEFINED IN SECTION
3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA")) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA OR (B) A "PLAN"
(AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED (THE "CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE CODE OR (II) A
DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION APPLIES TO THE
TRANSFEREE'S ACQUISITION AND CONTINUED HOLDING OF THIS NOTE. EACH TRANSFEREE OF
A BENEFICIAL INTEREST IN THIS NOTE SHALL BE DEEMED TO MAKE ONE OF THE FOREGOING
REPRESENTATIONS.

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2004-C
                       3.402% ASSET-BACKED NOTE, CLASS A-3

                  Long Beach Acceptance Auto Receivables Trust 2004-C, a
statutory trust organized and existing under the laws of the State of Delaware
(herein referred to as the "Issuer"), for value received, hereby promises to pay
to CEDE & CO. or registered assigns, the principal sum of SEVENTY FOUR MILLION
DOLLARS payable on each Payment Date from the sources and on the terms and
conditions set forth herein and as more fully set forth in the Indenture;
provided, however, that the entire unpaid principal amount of this Class A-3
Note shall be due and payable on the September 2009 Payment Date (the "Class A-3
Final Scheduled

                                     A-3-1

Payment Date"). The Issuer will pay interest on this Note at the rate per annum
shown above on each Payment Date until the principal of this Note is paid or
made available for payment. Interest on this Note will accrue for each Payment
Date from and including the most recent Payment Date on which interest has been
paid to but excluding such Payment Date or, if no interest has yet been paid,
from and including December 9, 2004 (the "Interest Period"). Interest on this
note will be computed on the basis of a 360-day year consisting of twelve 30 day
months (or, with respect to the first Payment Date, 39 days). Such principal of
and interest on this Note shall be paid in the manner specified on the reverse
hereof. Except as otherwise set forth in the Indenture, the rights of the Class
A-3 Noteholders to receive payments of principal on each Payment Date are
subordinated to the rights of the Class A-1 Noteholders and the Class A-2
Noteholders to receive payments in respect of principal, if any, due on such
Payment Date.

          The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

          The Class A-3 Notes are entitled to the benefits of a financial
guaranty insurance policy (the "Policy") issued by Financial Security Assurance,
Inc. (the "Note Insurer"), pursuant to which the Note Insurer has
unconditionally guaranteed payment to the Class A-3 Noteholders of (i) the Class
A-3 Interest Payment Amount with respect to each Payment Date, (ii) the amount,
if any, by which the outstanding Class A Note Balance (after taking into account
payments of principal on such Payment Date) exceeds the sum of the Pool Balance
as of the last day of the related Collection Period and the remaining Pre-Funded
Amount, if any, with respect to such Payment Date and (iii) the Principal
Payment Amount with respect to the Class A-3 Final Scheduled Payment Date, all
as more fully set forth in the Indenture and the Sale and Servicing Agreement.

          Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

          Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

                                     A-3-2

          IN WITNESS WHEREOF, the Issuer has caused this instrument to be
signed, manually or in facsimile, by its Authorized Officer as of the date set
forth below.

Date: December 9, 2004

                             LONG BEACH ACCEPTANCE AUTO
                             RECEIVABLES TRUST 2004-C

                             By: Wilmington Trust Company, not in its individual
                             capacity but solely as Owner Trustee

                             By:
                                ------------------------------------------------
                             Name:
                             Title:

                                     A-3-3

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

          This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

Date: December 9, 2004           JPMORGAN CHASE BANK, NATIONAL
                                 ASSOCIATION not in its individual capacity but
                                 solely as Indenture Trustee

                                 By:
                                    ----------------------------------------
                                            Authorized Signatory

                                     A-3-4

                                [REVERSE OF NOTE]

          This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its 3.402% Asset-Backed Notes, Class A-3 (herein called the "Class
A-3 Notes"), issued under an Indenture dated as of December 1, 2004 (such
indenture, as supplemented or amended, is herein called the "Indenture"),
between the Issuer and JPMorgan Chase Bank, National Association, as Indenture
Trustee (the "Indenture Trustee", which term includes any successor Indenture
Trustee under the Indenture) to which Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the Holders of
the Notes. The 2.390% Asset-Backed Notes, Class A-1 (the "Class A-1 Notes"), the
3.040% Asset-Backed Notes, Class A-2 (the "Class A-2 Notes") and the 3.777%
Asset-Backed Notes, Class A-4 (the "Class A-4 Notes" and together with the Class
A-1 Notes, the Class A-2 Notes, and the Class A-3 Notes, the "Notes") have also
been issued under the Indenture. The Notes are subject to all terms of the
Indenture and the Sale and Servicing Agreement. All terms used in this Note that
are defined in the Indenture, as supplemented or amended, shall have the
meanings assigned to them in or pursuant to the Indenture, as so supplemented or
amended.

          The Notes are and will be equally and ratably secured by the
collateral pledged as security therefor as provided in the Indenture.

          Principal of the Class A-3 Notes will be payable on each Payment Date
in an amount described on the face hereof. "Payment Date" means the fifteenth
day of each month, or, if any such date is not a Business Day, the next Business
Day, commencing January 18, 2005. The term "Payment Date," shall be deemed to
include the Class A-1 Final Scheduled Payment Date, the Class A-2 Final
Scheduled Payment Date, the Class A-3 Final Scheduled Payment Date and the Class
A-4 Final Scheduled Payment Date.

          As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note is registrable in the Note Register
upon surrender of this Note for registration of transfer at the offices or
agencies maintained by the Indenture Trustee in its capacity as Note Registrar
or by any successor Note Registrar, in the Borough of Manhattan, The City of New
York, accompanied by a written instrument of transfer in form satisfactory to
the Indenture Trustee and the Note Registrar duly executed by the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Notes of authorized denominations evidencing the same aggregate debt of the
Trust will be issued to the designated transferee.

          The Notes shall be issuable in minimum denominations of one hundred
thousand dollars ($100,000) and integral multiples of one thousand dollars
($1,000) in excess thereof. As provided in the Agreement and subject to certain
limitations set forth therein, Notes are exchangeable for new Notes of
authorized denominations evidencing the same aggregate denomination, as
requested by the Holder surrendering the same. No service charge will be made
for any such registration of transfer or exchange, but the Indenture Trustee may
require payment of a sum sufficient to cover any tax or governmental charges
payable in connection therewith.

                                     A-3-5

          The Indenture Trustee, the Note Registrar, and any agent of the
Indenture Trustee or the Note Registrar may treat the person in whose name this
Note is registered as the owner hereof for all purposes, and neither the
Indenture Trustee, the Note Registrar, nor any such agent shall be affected by
any notice to the contrary.

          The obligations and responsibilities created by the Sale and Servicing
Agreement, the Indenture and the Trust Agreement shall terminate upon the
payment to Noteholders of all amounts required to be paid to them pursuant to
the Indenture and the Sale and Servicing Agreement, the payment of all
Reimbursement Obligations, and the expiration of any preference period with
respect thereto and the disposition of all property held as part of the Trust.
The Class R Certificateholder may redeem the Notes on any Payment Date on or
after the outstanding Pool Balance is less than or equal to 10% of the sum of
the Original Pool Balance plus the Original Pre-Funded Amount at a price
specified in the Indenture.

          The Issuer shall pay interest on overdue installments of interest at
the Class A-3 Note Rate to the extent lawful.

          Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Owner Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Indenture Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Issuer, the Transferor, the Servicer, the Originator, the
Indenture Trustee, Trust Collateral Agent, Collateral Agent, Back-up Servicer,
Custodian or the Owner Trustee in its individual capacity, (ii) any owner of a
beneficial interest in the Issuer or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of the Transferor, the Servicer, the
Originator, the Indenture Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Transferor, the Servicer, the
Originator, the Owner Trustee, Trust Collateral Agent, Collateral Agent, Back-up
Servicer, Custodian or the Indenture Trustee or of any successor or assign of
the Transferor, the Servicer, the Originator, the Indenture Trustee, Trust
Collateral Agent, Collateral Agent, Back-up Servicer, Custodian or the Owner
Trustee in its individual capacity, except as any such Person may have expressly
agreed (it being understood that the Indenture Trustee, Trust Collateral Agent,
Collateral Agent, Back-up Servicer, Custodian and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or call owing to such entity.

          Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note covenants and agrees to treat
the Notes as indebtedness for purposes of federal income, state and local income
and franchise and any other income taxes.

          The Indenture permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Transferor and the rights of the Noteholders under the Indenture at any time by
the Issuer and the Indenture Trustee with the consent of the Note Insurer but,
in certain circumstances, without the consent of the Holders of

                                     A-3-6

Notes. The Indenture also contains provisions permitting the Noteholders
representing specified percentages of the outstanding Note Balance of the Notes,
on behalf of the Holders of all the Notes, to waive compliance by the Issuer
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one of more Predecessor Notes) shall be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note.

          The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

          The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Indenture Trustee and the
Noteholders under the Indenture.

          This Note, the Sale and Servicing Agreement and the Indenture shall be
construed in accordance with the laws of the State of New York, without
reference to its conflict of law provisions, and the obligations, rights and
remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws.

          No reference herein to the Indenture or any of the other Basic
Documents and no provision of this Note or of the Indenture or any of the other
Basic Documents shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place, and rate, and in the coin or currency herein prescribed.

          Anything herein to the contrary notwithstanding, except as expressly
provided in the Indenture or the Basic Documents, neither Wilmington Trust
Company in its individual capacity, any owner of a beneficial interest in the
Issuer, nor any of their respective partners, beneficiaries, agents, officers,
directors, employees or successors or assigns shall be personally liable for,
nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note or the Indenture, it
being expressly understood that said covenants, obligations and indemnifications
have been made by the Issuer for the sole purposes of binding the interests of
the Issuer in the assets of the Issuer. The Holder of this Note by the
acceptance hereof agrees that except as expressly provided in the Indenture or
the Basic Documents, in the case of an Event of Default under the Indenture, the
Holder shall have no claim against any of the foregoing for any deficiency, loss
or claim therefrom; provided, however, that nothing contained herein shall be
taken to prevent recourse to, and enforcement against, the assets of the Issuer
for any and all liabilities, obligations and undertakings contained in the
Indenture or in this Note.

                                     A-3-7

                                   ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

          FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto
               --------------------------------
                (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints, attorney, to transfer said Note on the books kept for registration
thereof, with full power of substitution in the premises.

Dated                                     (4)
     ------------------------------------     ----------------------------------
                                              Signature Guaranteed:

----------------------
(4)  NOTE: The signature to this assignment must correspond with the name of the
     registered owner as it appears on the face of the within Note in every
     particular, without alteration, enlargement or any change whatsoever.

                                     A-3-8

                                                                     EXHIBIT A-4

REGISTERED                                                  $107,000,000
No. RA--4--1

                      SEE REVERSE FOR CERTAIN DEFINITIONS

                                                           CUSIP NO. 542391 BW 6

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

NO TRANSFER OF THIS NOTE SHALL BE PERMITTED TO BE MADE TO ANY PERSON UNLESS THE
INDENTURE TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEREE TO THE EFFECT
THAT EITHER (I) THE TRANSFEREE IS NOT AND IS NOT ACTING ON BEHALF OF OR
INVESTING THE ASSETS OF (A) AN "EMPLOYEE BENEFIT PLAN" (AS DEFINED IN SECTION
3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA")) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA OR (B) A "PLAN"
(AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED (THE "CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE CODE OR (II) A
DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION APPLIES TO THE
TRANSFEREE'S ACQUISITION AND CONTINUED HOLDING OF THIS NOTE. EACH TRANSFEREE OF
A BENEFICIAL INTEREST IN THIS NOTE SHALL BE DEEMED TO MAKE ONE OF THE FOREGOING
REPRESENTATIONS.

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2004-C
                       3.777% ASSET-BACKED NOTE, CLASS A-4

                  Long Beach Acceptance Auto Receivables Trust 2004-C, a
statutory trust organized and existing under the laws of the State of Delaware
(herein referred to as the "Issuer"), for value received, hereby promises to pay
to CEDE & CO. or registered assigns, the principal sum of ONE HUNDRED SEVEN
MILLION DOLLARS payable on each Payment Date from the sources and on the terms
and conditions set forth herein and as more fully set forth in the Indenture;
provided, however, that the entire unpaid principal amount of this Class A-4

                                     A-4-1

Note shall be due and payable on the July 2011 Payment Date (the "Class A-4
Final Scheduled Payment Date"). The Issuer will pay interest on this Note at the
rate per annum shown above on each Payment Date until the principal of this Note
is paid or made available for payment. Interest on this Note will accrue for
each Payment Date from and including the most recent Payment Date on which
interest has been paid to but excluding such Payment Date or, if no interest has
yet been paid, from and including December 9, 2004 (the "Interest Period").
Interest on this note will be computed on the basis of a 360-day year consisting
of twelve 30 day months (or, with respect to the first Payment Date, 39 days).
Such principal of and interest on this Note shall be paid in the manner
specified on the reverse hereof. Except as otherwise set forth in the Indenture,
the rights of the Class A-4 Noteholders to receive payments of principal on each
Payment Date are subordinated to the rights of the Class A-1 Noteholders, the
Class A-2 Noteholders and the Class A-3 Noteholders to receive payments in
respect of principal, if any, due on such Payment Date.

          The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

          The Class A-4 Notes are entitled to the benefits of a financial
guaranty insurance policy (the "Policy") issued by Financial Security Assurance,
Inc. (the "Note Insurer"), pursuant to which the Note Insurer has
unconditionally guaranteed payment to the Class A-4 Noteholders of (i) the Class
A-4 Interest Payment Amount with respect to each Payment Date, (ii) the amount,
if any, by which the outstanding Class A Note Balance (after taking into account
payments of principal on such Payment Date) exceeds the sum of the Pool Balance
as of the last day of the related Collection Period and the remaining Pre-Funded
Amount, if any, with respect to such Payment Date and (iii) the Principal
Payment Amount with respect to the Class A-4 Final Scheduled Payment Date, all
as more fully set forth in the Indenture and the Sale and Servicing Agreement.

          Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

          Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

                                     A-4-2

          IN WITNESS WHEREOF, the Issuer has caused this instrument to be
signed, manually or in facsimile, by its Authorized Officer as of the date set
forth below.

Date: December 9, 2004

                           LONG BEACH ACCEPTANCE AUTO
                           RECEIVABLES TRUST 2004-C

                           By: Wilmington Trust Company, not in its individual
                           capacity but solely as Owner Trustee

                           By:
                               --------------------------------------------
                           Name:
                           Title:

                                     A-4-3

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

          This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

Date: December 9, 2004           JPMORGAN CHASE BANK, NATIONAL
                                 ASSOCIATION, not in its individual capacity but
                                 solely as Indenture Trustee

                                 By:
                                    ----------------------------------------
                                               Authorized Signatory

                                     A-4-4

                                [REVERSE OF NOTE]

          This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its 3.777% Asset-Backed Notes, Class A-4 (herein called the "Class
A-4 Notes"), issued under an Indenture dated as of December 1, 2004 (such
indenture, as supplemented or amended, is herein called the "Indenture"),
between the Issuer and JPMorgan Chase Bank, National Association, as Indenture
Trustee (the "Indenture Trustee", which term includes any successor Indenture
Trustee under the Indenture) to which Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the Holders of
the Notes. The 2.390% Asset-Backed Notes, Class A-1 (the "Class A-1 Notes"), the
3.040% Asset-Backed Notes, Class A-2 (the "Class A-2 Notes") and the 3.402%
Asset-Backed Notes, Class A-3 (the "Class A-3 Notes" and together with the Class
A-1 Notes, the Class A-2 Notes, and the Class A-3 Notes, the "Notes") have also
been issued under the Indenture. The Notes are subject to all terms of the
Indenture and the Sale and Servicing Agreement. All terms used in this Note that
are defined in the Indenture, as supplemented or amended, shall have the
meanings assigned to them in or pursuant to the Indenture, as so supplemented or
amended.

          The Notes are and will be equally and ratably secured by the
collateral pledged as security therefor as provided in the Indenture.

          Principal of the Class A-4 Notes will be payable on each Payment Date
in an amount described on the face hereof. "Payment Date" means the fifteenth
day of each month, or, if any such date is not a Business Day, the next Business
Day, commencing January 18, 2005. The term "Payment Date," shall be deemed to
include the Class A-1 Final Scheduled Payment Date, the Class A-2 Final
Scheduled Payment Date, the Class A-3 Final Scheduled Payment Date and the Class
A-4 Final Scheduled Payment Date.

          As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note is registrable in the Note Register
upon surrender of this Note for registration of transfer at the offices or
agencies maintained by the Indenture Trustee in its capacity as Note Registrar
or by any successor Note Registrar, in the Borough of Manhattan, The City of New
York, accompanied by a written instrument of transfer in form satisfactory to
the Indenture Trustee and the Note Registrar duly executed by the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Notes of authorized denominations evidencing the same aggregate debt of the
Trust will be issued to the designated transferee.

          The Notes shall be issuable in minimum denominations of one hundred
thousand dollars ($100,000) and integral multiples of one thousand dollars
($1,000) in excess thereof. As provided in the Agreement and subject to certain
limitations set forth therein, Notes are exchangeable for new Notes of
authorized denominations evidencing the same aggregate denomination, as
requested by the Holder surrendering the same. No service charge will be made
for any such registration of transfer or exchange, but the Indenture Trustee may
require payment of a sum sufficient to cover any tax or governmental charges
payable in connection therewith.

                                     A-4-5

          The Indenture Trustee, the Note Registrar, and any agent of the
Indenture Trustee or the Note Registrar may treat the person in whose name this
Note is registered as the owner hereof for all purposes, and neither the
Indenture Trustee, the Note Registrar, nor any such agent shall be affected by
any notice to the contrary.

          The obligations and responsibilities created by the Sale and Servicing
Agreement, the Indenture and the Trust Agreement shall terminate upon the
payment to Noteholders of all amounts required to be paid to them pursuant to
the Indenture and the Sale and Servicing Agreement, the payment of all
Reimbursement Obligations, and the expiration of any preference period with
respect thereto and the disposition of all property held as part of the Trust.
The Class R Certificateholder may redeem the Notes on any Payment Date on or
after the outstanding Pool Balance is less than or equal to 10% of the sum of
the Original Pool Balance plus the Original Pre-Funded Amount at a price
specified in the Indenture.

          The Issuer shall pay interest on overdue installments of interest at
the Class A-4 Note Rate to the extent lawful.

          Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Owner Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Indenture Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Issuer, the Transferor, the Servicer, the Originator, the
Indenture Trustee, Trust Collateral Agent, Collateral Agent, Back-up Servicer,
Custodian or the Owner Trustee in its individual capacity, (ii) any owner of a
beneficial interest in the Issuer or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of the Transferor, the Servicer, the
Originator, the Indenture Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Transferor, the Servicer, the
Originator, the Owner Trustee, Trust Collateral Agent, Collateral Agent, Back-up
Servicer, Custodian or the Indenture Trustee or of any successor or assign of
the Transferor, the Servicer, the Originator, the Indenture Trustee, Trust
Collateral Agent, Collateral Agent, Back-up Servicer, Custodian or the Owner
Trustee in its individual capacity, except as any such Person may have expressly
agreed (it being understood that the Indenture Trustee, Trust Collateral Agent,
Collateral Agent, Back-up Servicer, Custodian and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or call owing to such entity.

          Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note covenants and agrees to treat
the Notes as indebtedness for purposes of federal income, state and local income
and franchise and any other income taxes.

          The Indenture permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Transferor and the rights of the Noteholders under the Indenture at any time by
the Issuer and the Indenture Trustee with the consent of the Note Insurer but,
in certain circumstances, without the consent of the Holders of

                                     A-4-6

Notes. The Indenture also contains provisions permitting the Noteholders
representing specified percentages of the outstanding Note Balance of the Notes,
on behalf of the Holders of all the Notes, to waive compliance by the Issuer
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one of more Predecessor Notes) shall be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note.

          The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

          The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Indenture Trustee and the
Noteholders under the Indenture.

          This Note, the Sale and Servicing Agreement and the Indenture shall be
construed in accordance with the laws of the State of New York, without
reference to its conflict of law provisions, and the obligations, rights and
remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws.

          No reference herein to the Indenture or any of the other Basic
Documents and no provision of this Note or of the Indenture or any of the other
Basic Documents shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place, and rate, and in the coin or currency herein prescribed.

          Anything herein to the contrary notwithstanding, except as expressly
provided in the Indenture or the Basic Documents, neither Wilmington Trust
Company in its individual capacity, any owner of a beneficial interest in the
Issuer, nor any of their respective partners, beneficiaries, agents, officers,
directors, employees or successors or assigns shall be personally liable for,
nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note or the Indenture, it
being expressly understood that said covenants, obligations and indemnifications
have been made by the Issuer for the sole purposes of binding the interests of
the Issuer in the assets of the Issuer. The Holder of this Note by the
acceptance hereof agrees that except as expressly provided in the Indenture or
the Basic Documents, in the case of an Event of Default under the Indenture, the
Holder shall have no claim against any of the foregoing for any deficiency, loss
or claim therefrom; provided, however, that nothing contained herein shall be
taken to prevent recourse to, and enforcement against, the assets of the Issuer
for any and all liabilities, obligations and undertakings contained in the
Indenture or in this Note.

                                     A-4-7

                                   ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

          FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto
               --------------------------------
                (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints, attorney, to transfer said Note on the books kept for registration
thereof, with full power of substitution in the premises.

Dated                                 (5)
     ---------------------------------     -------------------------------------
                                           Signature Guaranteed:

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

------------------
(5)  NOTE: The signature to this assignment must correspond with the name of the
     registered owner as it appears on the face of the within Note in every
     particular, without alteration, enlargement or any change whatsoever.

                                     A-4-8

EXHIBIT B

                          FORM OF DEPOSITORY AGREEMENT

           Please See Tab [__] for the DTC Letter of Representations.

                                      B-1

                                                                       EXHIBIT C

                    [FORM OF CERTIFICATE AS TO ERISA MATTERS]

                                     [date]

Long Beach Acceptance Auto Receivables Trust 2004-C
c/o Wilmington Trust Company, as Owner Trustee
Rodney Square North
1100 North Market Street
Wilmington, Delaware  19890-0001
Attention:  Corporate Trust Administration

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION
4 New York Plaza, 6th Floor
New York, New York 10004
Attention:   Institutional Trust Services/ Global Debt
             Long Beach Acceptance Auto
             Receivables Trust 2004-C

         Re: Long Beach Acceptance Auto Receivables Trust 2004-C
             Asset-Backed Notes, Class [A-1][A-2][A-3][A-4]

Ladies and Gentlemen:

          [NAME OF OFFICER] ____________________ hereby certifies that:

          1. That he [she] is [Title of Officer] ________________ of [Name of
Transferee] ______________________________________ (the "Transferee"), a
[savings institution] [corporation] duly organized and existing under the laws
of [the State of ________] [the United States], on behalf of which he [she]
makes this affidavit.

          2. The Transferee (i) is not, and is not acting on behalf of or
investing the assets of, (a) an employee benefit plan (as defined in Section
3(3) of the Employee Retirement Income Security Act of 1974, as amended
("ERISA")) that is subject to the provisions of Title I of ERISA or (b) a plan
(as defined in Section 4975(e)(1) of the Internal Revenue Code of 1986, as
amended (the "Code") that is subject to Section 4975 of the Code (each, a
"Benefit Plan") or (ii) is entitled to exemptive relief pursuant to a Department
of Labor prohibited transaction class exemption with respect to the Transferee's
acquisition and continued holding of such Class [A-1][A-2][A-3][A-4] Note.

          3. The Transferee hereby acknowledges that under the terms of the
Indenture, dated as of December 1, 2004 (the "Indenture"), between Long Beach
Acceptance Auto Receivables Trust 2004-C (the "Issuer") and JPMorgan Chase Bank,
National Association, as indenture trustee (the "Indenture Trustee"), no
transfer of any Class [A-1][A-2][A-3][A-4] Note (as defined in the Indenture)
shall be

                                      C-1

permitted to be made to any person unless the Indenture Trustee has received a
certificate from such transferee to the effect that such transferee (A) is not a
Benefit Plan and is not acting on behalf of or investing the assets of any such
Benefit Plan or (B) is entitled to exemptive relief pursuant to a Department of
Labor prohibited transaction class exemption with respect to such transferee's
acquisition and continued holding of such Note.

          4. The Class [A-1][A-2][A-3][A-4] Notes shall be registered in the
name of _________________ ___________________ [as nominee for the Transferee.]

          IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
[Title of Officer] ______________ _______________, this _____ day of
___________, _____.

                           --------------------------
                           [name of Transferee]

                           By: _______________________
                               Name:
                               Title:

          The undersigned hereby acknowledges
that it is holding and will hold the Class
[A-1][A-2][A-3][A-4] Notes at the exclusive
direction of and as nominee of the Investor
named above.

-------------------------------------
[name of nominee]

By:__________________________________
   Name:
   Title:

                                      C-2EXECUTION COPY

================================================================================

                      AMENDED AND RESTATED TRUST AGREEMENT

                                     between

                     LONG BEACH ACCEPTANCE RECEIVABLES CORP.

                                       and

                            WILMINGTON TRUST COMPANY
                                  Owner Trustee

                          Dated as of December 1, 2004

================================================================================

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

ARTICLE I. DEFINITIONS........................................................1

 SECTION 1.1.  Capitalized Terms..............................................1
 SECTION 1.2.  Other Definitional Provisions..................................3

ARTICLE II. ORGANIZATION......................................................3

 SECTION 2.1.  Name...........................................................3
 SECTION 2.2.  Office.........................................................4
 SECTION 2.3.  Purposes and Powers............................................4
 SECTION 2.4.  Appointment of Owner Trustee...................................7
 SECTION 2.5.  Initial Capital Contribution to the Trust......................7
 SECTION 2.6.  Declaration of Trust...........................................7
 SECTION 2.7.  Title to Owner Trust Estate....................................8
 SECTION 2.8.  Situs of Trust.................................................8
 SECTION 2.9.  Representations and Warranties of the Transferor...............8
 SECTION 2.10. Covenants of the Certificateholders...........................10
 SECTION 2.11. Federal Income Tax Treatment of the Trust.....................11
 SECTION 2.12. Derivatives Contracts.........................................14

ARTICLE III. CERTIFICATES AND TRANSFER OF INTEREST...........................15

 SECTION 3.1.  Initial Ownership.............................................15
 SECTION 3.2.  The Certificates..............................................15
 SECTION 3.3.  Authentication of Certificates................................15
 SECTION 3.4.  Registration of Certificates..................................16
 SECTION 3.5.  Mutilated, Destroyed, Lost or Stolen Certificates.............17
 SECTION 3.6.  Persons Deemed Certificateholders.............................17
 SECTION 3.7.  Transfer of Certificates......................................18
 SECTION 3.8.  Disposition In Whole But Not In Part..........................19

ARTICLE IV. VOTING RIGHTS AND OTHER ACTIONS..................................20

 SECTION 4.1.  Prior Notice to Certificateholders with Respect to Certain
               Matters.......................................................20
 SECTION 4.2.  Action by Certificateholders with Respect to Certain Matters..20
 SECTION 4.3.  Restrictions on Certificateholders' Power.....................21
 SECTION 4.4.  Rights of Note Insurer........................................21

ARTICLE V. AUTHORITY AND DUTIES OF OWNER TRUSTEE.............................21

 SECTION 5.1.  General Authority.............................................21
 SECTION 5.2.  General Duties................................................22
 SECTION 5.3.  Action upon Instruction.......................................22
 SECTION 5.4.  No Duties Except as Specified in this Agreement or in
               Instructions..................................................23

                                       i

                                                                            Page
                                                                            ----

 SECTION 5.5.  No Action Except under Specified Documents or Instructions.....24
 SECTION 5.6.  Restrictions...................................................24

ARTICLE VI. CONCERNING THE OWNER TRUSTEE......................................24

 SECTION 6.1.  Acceptance of Trusts and Duties................................24
 SECTION 6.2.  Furnishing of Documents........................................26
 SECTION 6.3.  Representations and Warranties.................................26
 SECTION 6.4.  Reliance; Advice of Counsel....................................27
 SECTION 6.5.  Not Acting in Individual Capacity..............................27
 SECTION 6.6.  Owner Trustee Not Liable for Certificates or Receivables.......27
 SECTION 6.7.  Owner Trustee May Own Notes....................................28
 SECTION 6.8.  Payments from Owner Trust Estate...............................28
 SECTION 6.9.  Doing Business in Other Jurisdictions..........................28

ARTICLE VII. COMPENSATION OF OWNER TRUSTEE....................................28

 SECTION 7.1.  Owner Trustee's Fees and Expenses..............................28
 SECTION 7.2.  Indemnification................................................29
 SECTION 7.3.  Payments to the Owner Trustee..................................29
 SECTION 7.4.  Non-recourse Obligations.......................................29

ARTICLE VIII. TERMINATION OF TRUST AGREEMENT..................................29

 SECTION 8.1.  Termination of Trust Agreement.................................29

ARTICLE IX. SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES............30

 SECTION 9.1.  Eligibility Requirements for Owner Trustee.....................30
 SECTION 9.2.  Resignation or Removal of Owner Trustee........................31
 SECTION 9.3.  Successor Owner Trustee........................................31
 SECTION 9.4.  Merger or Consolidation of Owner Trustee.......................32
 SECTION 9.5.  Appointment of Co-Indenture Trustee or Separate Indenture
               Trustee........................................................32

ARTICLE X. MISCELLANEOUS......................................................33

 SECTION 10.1.  Supplements and Amendments....................................33
 SECTION 10.2.  No Legal Title to Owner Trust Estate in Certificateholders....35
 SECTION 10.3.  Limitations on Rights of Others...............................35
 SECTION 10.4.  Notices.......................................................35
 SECTION 10.5.  Severability..................................................36
 SECTION 10.6.  Separate Counterparts.........................................36
 SECTION 10.7.  Assignments...................................................37
 SECTION 10.8.  No Recourse...................................................37
 SECTION 10.9.  Headings......................................................37
 SECTION 10.10. GOVERNING LAW.................................................37

                                       ii

                                                                            Page
                                                                            ----

 SECTION 10.11. Servicer......................................................37
 SECTION 10.12. Limitation on Liability.......................................37
 SECTION 10.13. No Petition...................................................38
 SECTION 10.14. Bankruptcy Matters............................................38
 SECTION 10.15. Effect of Policy Expiration Date..............................38

EXHIBITS
--------

EXHIBIT A    -  Form of Certificate of Trust

EXHIBIT B-1  -  Form of Class R Certificate

EXHIBIT B-2  -  Form of Class C Certificate

EXHIBIT C    -  Form of Transferee's Certificate for Qualified Institutional
                Buyers

EXHIBIT D    -  Form of Transferee's Certificate for Institutional Accredited
                Investors

EXHIBIT E    -  Form of Transferor's Certificate

EXHIBIT F    -  Form of ERISA Certificate

EXHIBIT G    -  Form of Flow Through Entity Certificate

                                      iii

                  AMENDED AND RESTATED TRUST AGREEMENT dated as of December 1,
2004 between LONG BEACH ACCEPTANCE RECEIVABLES CORP., a Delaware corporation
(the "Transferor"), and Wilmington Trust Company, a Delaware banking
corporation, acting hereunder not in its individual capacity but solely as Owner
Trustee (in such capacity, the "Owner Trustee").

                  WHEREAS, the Transferor and the Owner Trustee have entered
into a Trust Agreement dated as of December 1, 2004 (the "Original Trust
Agreement"); and

                  WHEREAS, the Transferor and the Owner Trustee wish to amend
and restate the Original Trust Agreement by entering into this Agreement.

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

                                   ARTICLE I.

                                   Definitions

                  SECTION 1.1. Capitalized Terms. For all purposes of this
Agreement, the following terms shall have the meanings set forth below, terms
defined in the singular shall include the plural:

                  "Agreement" shall mean this Amended and Restated Trust
Agreement, as the same may be further amended and supplemented from time to
time.

                  "Capital Account" shall have the meaning assigned to such term
in Section 2.11.

                  "Certificate" shall mean each of the Class C Certificate and
the Class R Certificate.

                  "Certificate of Trust" shall mean the Certificate of Trust in
the form of Exhibit A to be filed for the Trust pursuant to Section 3810(a) of
the Statutory Trust Act.

                  "Certificate Register" and "Certificate Registrar" shall mean
the register mentioned and the registrar appointed pursuant to Section 3.4.

                  "Certificateholder" or "Holder" shall mean the person in whose
name a Certificate is registered on the Certificate Register.

                  "Class C Certificate" means the certificate substantially in
the form of Exhibit B-2 attached hereto.

                  "Class R Certificate" means a trust certificate evidencing the
entire beneficial interest in the Trust, substantially in the form of Exhibit
B-1 attached hereto.

                  "Derivative Contract" means any ISDA Master Agreement,
together with the related Schedule and Confirmation, entered into by the Trust
and a Derivative Counterparty in accordance with Section 2.12.

                  "Derivative Counterparty" means any counterparty to a
Derivative Contract as provided in Section 2.12.

                  "Instructing Party" shall have the meaning assigned to such
term in Section 5.3.

                  "Nonrecourse Debt Minimum Gain" means "partner nonrecourse
debt minimum gain" as defined in Treasury Regulation 1.704-2(i)(2).

                  "Non-Registered Trust Certificate" means a Certificate other
than a Registered Trust Certificate.

                  "Owner Trust Estate" shall mean all right, title and interest
of the Trust in and to the property and rights assigned to the Trust pursuant to
Article II of the Sale and Servicing Agreement and pursuant to each Transfer
Agreement, all funds on deposit from time to time in Collection Account, the
Pre-Funding Account, the Supplemental Enhancement Account or the Note Account
and all other property of the Trust from time to time, including any rights of
the Owner Trustee and the Trust pursuant to the Sale and Servicing Agreement and
the Spread Account Agreement.

                  "Partnership Interest" means with respect to any
Certificateholder, the partnership interest as determined by the relative
amounts in each Certificateholder's Capital Accounts.

                  "Registered Trust Certificate" means a Certificate that was
sold pursuant to a registration statement that has been filed and has become
effective under the Securities Act.

                  "Secretary of State" means the Secretary of State of the State
of Delaware.

                  "Statutory Trust Act" shall mean Chapter 38 of Title 12 of the
Delaware Code, 12 Del. Code ss. 3801 et. seq. as the same may be amended from
time to time.

                  "Transferee's Certificate" means a certificate in the form of
Exhibits C or D hereto.

                  "Transferor's Certificate" means a certificate in the form of
Exhibit E hereto.

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

                  "Trust" means the trust established by this Agreement.

                                       2

                  "Trust Minimum Gain" means "partnership minimum gain" as
defined in Treasury Regulations 1.704-2(b)(2) and 1.704-(d). In accordance with
Treasury Regulations Section 1.704-2(d), the amount of Trust Minimum Gain is
determined by first computing, for each nonrecourse liability of the Trust, any
gain the Trust would realize if it disposed of the property subject to the
liability for no consideration other than full satisfaction of the liability,
and then aggregating the separately computed gains. A Certificateholder's share
of Trust Minimum Gain shall be determined in accordance with Treasury Regulation
Section 1.704-2(g)(1).

                  "WTC" means Wilmington Trust Company, a Delaware banking
corporation, in its individual capacity.

                  SECTION 1.2. Other Definitional Provisions.

                    (a) Capitalized terms used herein and not otherwise defined
               herein have the meanings assigned to them in Annex A to the Sale
               and Servicing Agreement.

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

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

                    (d) The words "hereof," "herein," "hereunder" and words of
               similar import when used in this Agreement shall refer to this
               Agreement as a whole and not to any particular provision of this
               Agreement; Section and Exhibit references contained in this
               Agreement are references to Sections and Exhibits in or to this
               Agreement unless otherwise specified; and the term "including"
               shall mean "including without limitation."

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

                                  ARTICLE II.

                                  Organization

                  SECTION 2.1. Name. There is hereby formed a trust to be known
as "Long Beach Acceptance Auto Receivables Trust 2004-C," in which name the
Owner Trustee may

                                       3

conduct the business of the Trust, make and execute contracts and other
instruments on behalf of the Trust and sue and be sued on behalf of the Trust.

                  SECTION 2.2. Office. The principal office of the Trust, and
such additional offices as the Class R Certificateholder may direct the Owner
Trustee to establish, shall be located at such place or places inside or outside
the State of Delaware as the Class R Certificateholder may unanimously designate
from time to time. The Class R Certificateholder hereby designates the office of
the Owner Trustee at Rodney Square North, 1100 North Market Street, Wilmington,
Delaware 19890-0001, Attention: Corporate Trust Administration as the principal
office of the Trust.

                  SECTION 2.3. Purposes and Powers. The Trust and the parties to
this Agreement shall be subject to the following provisions regarding the
purposes, powers and procedures of the Trust:

                         (a) The purpose of the Trust is to engage solely in the
        following activities:

                  (i) to acquire the Owner Trust Estate pursuant to Article II
        of the Sale and Servicing Agreement and each Transfer Agreement, as
        applicable;

                  (ii) to issue the Notes pursuant to the Indenture and the
        Class C Certificate and the Class R Certificate pursuant to this
        Agreement, to sell and exchange the Notes and to transfer the Class R
        Certificate to the Transferor and sell the Class C Certificate and to
        pay interest on and principal of the Notes and distributions on the
        Certificates;

                  (iii) with the proceeds of the sale of the Notes and the Class
        C Certificate, to fund the Pre-Funding Account, the Spread Account and
        the Supplemental Enhancement Account, and to pay the balance to the
        Transferor pursuant to the Sale and Servicing Agreement;

                  (iv) to assign, grant, transfer, pledge, mortgage and convey
        the Pledged Property to the Indenture Trustee pursuant to the Indenture
        for the benefit of the Note Insurer, the Certificateholders and the
        Noteholders and to hold, manage and distribute to the Certificateholders
        pursuant to the terms of the Sale and Servicing Agreement, each Transfer
        Agreement and the Spread Account Agreement any portion of the Pledged
        Property released from the Lien of the Indenture;

                  (v) at the direction of the Transferor and subject to the
        requirements set forth in Section 2.12 hereof, to enter into Derivative
        Contracts for the benefit of the Class R Certificateholder;

                  (vi) to enter into and perform its obligations under the Basic
        Documents to which it is a party;

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

                                       4

                  (viii) subject to compliance with the Basic Documents, to
        engage in such other activities as may be required in connection with
        conservation of the Owner Trust Estate and the making of distributions
        to the Certificateholders and the Noteholders.

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

                         (b) The Trust's only assets shall be the Owner Trust
        Estate. Other than the Notes, the Trust shall not secure any
        indebtedness with any of the Owner Trust Estate.

                         (c) Other than with respect to the transfer to the
        Trust of the Trust Assets, the Trust shall not do any of the following:
        acquire any obligations of, make loans or advances to, borrow funds
        from, assume or guarantee the obligations or liabilities of, have its
        obligations or liabilities guaranteed by, or hold itself out as
        responsible for the debts and obligations of the Owner Trustee, the
        Certificateholders, LBAC, LBARC-WI, the Indenture Trustee or any other
        person or entity.

                         (d) The Owner Trustee shall not manage, control, use,
        sell, dispose of or otherwise deal with any part of the Owner Trust
        Estate except in accordance with the specific limitations set forth in
        this Agreement and the other Basic Documents to which the Trust is a
        party.

                         (e) The Trust shall, in all dealings with the public,
        identify itself under the name of the Trust and as a separate and
        distinct entity from any other Person or entity. All transactions and
        agreements between the Trust and third parties shall be conducted in the
        name of the Trust as an entity separate and independent from the Owner
        Trustee, the Indenture Trustee, the Transferor, LBAC and any
        Certificateholder.

                         (f) All transactions and agreements between the Trust,
        on the one hand, and any of WTC, the Owner Trustee, the Indenture
        Trustee, the Trust Collateral Agent, the Custodian, the Transferor,
        LBAC, the Class R Certificateholder and the Class C Certificateholder,
        on the other hand, shall reflect the separate legal existence of each
        entity and will be formally documented in writing. The pricing and other
        material terms of all such transactions and agreements shall be on terms
        substantially similar to those that would be available on an
        arm's-length basis with unaffiliated third parties.

                         (g) The Trust shall not commingle its funds and other
        assets with those of any other Person or business entity and shall
        maintain its assets and liabilities in such a manner that it shall not
        be costly or difficult to segregate, ascertain or identify its
        individual assets and liabilities from those of any other person or
        entity. The Owner Trustee shall hold the Owner Trust Estate on behalf of
        the Trust.

                         (h) The Trust shall pay its liabilities and losses as
        they become due from the Owner Trust Estate, provided, however, that
        none of the Owner Trust Estate shall be used to pay the liabilities
        (including liability in respect of guaranties) and losses of WTC, the
        Transferor, LBAC, the Indenture Trustee, the Trust Collateral Agent, the
        Custodian or

                                       5

        any Certificateholder. The Trust has been structured to maintain capital
        in an amount reasonably sufficient to meet the anticipated needs of the
        Trust.

                         (i) The Trust shall not share any of the same officers
        or other employees with the Servicer, the Transferor, LBAC, the
        Indenture Trustee, the Trust Collateral Agent, the Custodian or any
        Certificateholder.

                         (j) The Trust shall not, jointly with the Servicer, the
        Transferor, LBAC, the Indenture Trustee, the Trust Collateral Agent, the
        Custodian or any Certificateholder contract or do business with vendors
        or service providers or share overhead expenses.

                         (k) The Trust shall maintain its own bank accounts,
        books and records and annual financial statements prepared in accordance
        with generally accepted accounting principles, separate from those of
        WTC, the Owner Trustee, the Indenture Trustee, the Trust Collateral
        Agent, the Custodian, the Transferor, LBAC, LBARC-WI and any
        Certificateholder. The foregoing will reflect that the assets and
        liabilities of and all transactions and transfers of funds involving the
        Trust shall be separate from those of each such other entity, and the
        Trust shall pay or bear the cost of the preparation of its own financial
        statements and shall not pay or bear the cost of the preparation of the
        financial statements of any such other entity. Neither the accounting
        records nor the financial statements of the Trust will indicate that the
        Owner Trust Estate is available to pay creditors of WTC, the Indenture
        Trustee, the Trust Collateral Agent, the Custodian, the Transferor,
        LBAC, LBARC-WI or any Certificateholder or any other person or entity.

                         (l) The Owner Trustee shall not have the power to
        commence a voluntary proceeding in bankruptcy relating to the Trust
        without the prior approval of the Certificateholders and the Transferor
        and the delivery to the Owner Trustee by each of the Certificateholders
        and the Transferor of a certificate stating that such entity reasonably
        believes that the Trust is insolvent.

                         (m) Each of the Owner Trustee and the Transferor
        covenants and agrees that it will not at any time institute against any
        Certificateholder, or join in any institution against any
        Certificateholder of any bankruptcy, reorganization, arrangement,
        insolvency or liquidation proceeding or other proceeding under any
        United States of America federal or state bankruptcy or similar law in
        connection with any obligations relating to the Certificates or this
        Agreement. The Owner Trustee and the Transferor each covenants and
        agrees that it will not, in any capacity, seek the substantive
        consolidation of the assets of the Trust with any Certificateholder.

                         (n) The Certificates cannot be transferred other than
        pursuant to Section 3.7.

                         (o) The Owner Trustee may, pursuant to Section 5.2 of
        this Agreement, delegate certain administrative duties relating to the
        Trust to specified entities (other than the Class R Certificateholder),
        which will be authorized to prepare on behalf of the Trust all
        documents, reports, filings, instruments, certificates and opinions as
        it shall be the duty of the Trust to prepare, file and deliver. However,
        the Owner Trustee may not delegate

                                       6

        any such administrative duties to the Class R Certificateholder, and the
        Class R Certificateholder may not perform any of the Trust's duties or
        obligations.

                         (p) The Class R Certificate shall entitle the Class R
        Certificateholder only to the benefits and distributions as are
        expressly set forth in this Agreement.

                         (q) The Class C Certificate shall entitle the Class C
        Certificateholder only to the benefits and distributions as are
        expressly set forth in this Agreement.

                         (r) The Trust and this Agreement may not be revoked or
        terminated except in accordance with Section 8.1 of this Agreement and
        in no event shall any Certificateholder have the ability to terminate
        the Trust unilaterally.

                         (s) The Trust shall not consensually merge or
        consolidate with any of WTC, the Owner Trustee, the Transferor, LBAC,
        LBARC-WI or any Certificateholder.

                         (t) Neither the Transferor nor any Certificateholder
        shall request or instruct the Owner Trustee to take or refrain from
        taking any action if such action or inaction would be contrary to any
        obligation of the Trust or the Owner Trustee under this Agreement or
        contrary to the limited purposes of the Trust, and the Owner Trustee
        shall be under no obligation to comply with any such request or
        instruction if given.

                  SECTION 2.4. Appointment of Owner Trustee. The Transferor
hereby appoints the Owner Trustee as trustee of the Trust effective as of the
date hereof, to have all the rights, powers and duties set forth herein.

                  SECTION 2.5. Initial Capital Contribution to the Trust. The
Transferor hereby sells, assigns, transfers, conveys and sets over to the Owner
Trustee, as of the date hereof, the sum of $1. The Owner Trustee hereby
acknowledges receipt in trust from the Transferor, as of the date hereof, of the
foregoing contribution, which shall constitute the initial property of the
Trust. The Transferor shall pay organizational expenses of the Trust as they may
arise.

                  SECTION 2.6. Declaration of Trust. The Owner Trustee hereby
declares that it will hold the Owner Trust Estate for the use and benefit of the
Certificateholders in trust upon and subject to the conditions set forth herein,
subject to the obligations of the Trust under the Basic Documents. It is the
intention of the parties hereto that the Trust constitute a statutory trust
under the Statutory Trust Act and that this Agreement constitute the governing
instrument of such statutory trust. Effective as of the date hereof, the Owner
Trustee shall have all rights, powers and duties set forth herein and to the
extent not inconsistent herewith, in the Statutory Trust Act with respect to
accomplishing the purposes of the Trust. The Owner Trustee shall file the
Certificate of Trust with the Secretary of State.

                  No Certificateholder shall have any personal liability for any
liability or obligation of the Trust.

                                       7

                  SECTION 2.7. Title to Owner Trust Estate

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

                         (b) No Certificateholder shall have legal title to any
        part of the Owner Trust Estate. The Class R Certificateholder shall be
        entitled to receive distributions with respect to its undivided
        ownership interest therein only in accordance with the Sale and
        Servicing Agreement and the Spread Account Agreement. The Class C
        Certificateholder shall be entitled to receive distributions with
        respect to its undivided ownership interest therein only in accordance
        with the Sale and Servicing Agreement. No transfer, by operation of law
        or otherwise, of any right, title or interest by the Class R
        Certificateholder of its ownership interest in the Owner Trust Estate
        shall operate to terminate this Agreement or the trusts hereunder or
        entitle any transferee to an accounting or to the transfer to it of
        legal title to any part of the Owner Trust Estate.

                  SECTION 2.8. Situs of Trust. The Trust shall be administered
in the State of Delaware.

                  SECTION 2.9. Representations and Warranties of the Transferor.
The Transferor makes the following representations and warranties on which the
Owner Trustee relies in accepting the Trust Assets in trust and issuing the
Certificates and upon which the Note Insurer relies in issuing the Policy:

                         (a) Organization and Good Standing. The Transferor is
        duly organized and validly existing as a Delaware corporation with power
        and authority to own its properties and to conduct its business as such
        properties are currently owned and such business is presently conducted
        and is proposed to be conducted pursuant to this Agreement and the Basic
        Documents to which it is a party.

                         (b) Due Qualification. The Transferor is duly qualified
        to do business as a foreign corporation in good standing, and has
        obtained all necessary licenses and approvals, in all jurisdictions in
        which the ownership or lease of its property, the conduct of its
        business and the performance of its obligations under this Agreement and
        the Basic Documents to which it is a party requires such qualification.

                         (c) Power; Authority; Execution; Enforceability. The
        Transferor has the corporate power and authority to execute and deliver
        this Agreement and to carry out its terms; the Transferor has full power
        and authority to sell and assign the property to be conveyed and
        assigned to and deposited with the Trust and the Transferor has duly
        authorized such conveyance and assignment and deposit to the Trust by
        all necessary corporate action; and the execution, delivery and
        performance of this Agreement and the other Basic Documents to which it
        is a party has been duly authorized by the Transferor by all necessary
        corporate action. The Transferor has duly executed this Agreement and

                                       8

        the other Basic Documents to which it is a party, and this Agreement and
        the other Basic Documents to which it is a party constitute the legal,
        valid and binding obligations of the Transferor, enforceable against the
        Transferor in accordance with their terms.

                         (d) No Consent Required. No consent, license, approval
        or authorization or registration or declaration with, any Person or with
        any governmental authority, bureau or agency is required to be obtained
        by the Transferor in connection with the execution, delivery or
        performance of this Agreement and the Basic Documents to which the
        Transferor is a party, except for such as have been obtained, effected
        or made.

                         (e) No Violation. The consummation of the transactions
        contemplated by this Agreement and the other Basic Documents and the
        fulfillment of the terms hereof and thereof do 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 by-laws of the Transferor, or any indenture, agreement
        or other instrument to which the Transferor is a party or by which it is
        bound; nor result in the creation or imposition of any Lien upon any of
        its properties pursuant to the terms of any such indenture, agreement or
        other instrument (other than pursuant to the Basic Documents); nor
        violate any law or, to the best of the Transferor's knowledge, any
        order, rule or regulation applicable to the Transferor of any court or
        of any federal or state regulatory body, administrative agency or other
        governmental instrumentality having jurisdiction over the Transferor or
        its properties.

                         (f) No Proceedings. There are no proceedings or
        investigations pending or, to its knowledge threatened against it before
        any court, regulatory body, administrative agency or other tribunal or
        governmental instrumentality having jurisdiction over it or its
        properties (A) asserting the invalidity of this Agreement or any of the
        Basic Documents to which the Transferor is a party, (B) seeking to
        prevent the issuance of the Certificates or the Notes or the
        consummation of any of the transactions contemplated by this Agreement
        or any of the Basic Documents to which the Transferor is a party, (C)
        seeking any determination or ruling that might materially and adversely
        affect its performance of its obligations under, or the validity or
        enforceability of, this Agreement or any of the Basic Documents to which
        the Transferor is a party, or (D) seeking to adversely affect the
        federal income tax or other federal, state or local tax attributes of
        the Notes or the Certificates.

                         (g) No Liens. Upon the conveyance, assignment or other
        transfer of any of the Trust Assets by the Transferor to the Trust
        pursuant to the Sale and Servicing Agreement and each Transfer
        Agreement, the Transferor will have conveyed to the Trust good title,
        free and clear of any lien, encumbrance or other interests of others
        (including any claim of any creditor of the Transferor or any of its
        Affiliates) of any nature and the Trust will have the right to Grant and
        deliver the Pledged Property to the Indenture Trustee in accordance with
        the Indenture and upon the Grant and delivery of the Pledged Property by
        the Trust to the Indenture Trustee in the manner contemplated by the
        Indenture, and assuming the validity and binding effect of the
        Indenture, the Indenture Trustee will have obtained a valid first
        priority security interest therein, prior to all liens.

                                       9

                         (h) Records. Immediately upon the sale or other
        delivery of any Trust Assets to the Trust pursuant to the Sale and
        Servicing Agreement and each Transfer Agreement, the Transferor will
        make any appropriate notations on its records to indicate that the Trust
        Assets have been transferred to the Trust pursuant to the Sale and
        Servicing Agreement, each Transfer Agreement and, to the extent it
        constitutes Pledged Property, has been pledged by the Trust to the
        Indenture Trustee to secure payment of the Notes.

                         (i) No Bankruptcy Petition. The Transferor has no
        present intent to cause a voluntary bankruptcy of the Trust.

                         (j) Separate Entity. The Transferor will hold itself
        out to the public under its own name as a separate and distinct entity
        and conduct its business so as not to mislead others as to the identity
        of the entity under which those others are concerned. Without limiting
        the generality of the foregoing, all oral and written communications,
        including all letters, invoices, contracts, statements and applications
        will be made solely in the name of the Trust if they are made on behalf
        of the Trust and solely in the name of the Transferor if they are made
        on behalf of the Transferor.

                         (k) Financial Statements. The Transferor will disclose
        in all financial statements that the assets of the Trust are not
        available to the Transferor's creditors.

                  SECTION 2.10. Covenants of the Certificateholders. Each
Certificateholder, by its acceptance of a Certificate, agrees:

                         (a) to be bound by the terms and conditions of the
        Certificates of which such Certificateholder is the beneficial owner and
        of this Agreement and the other Basic Documents, including any
        supplements or amendments hereto and thereto and to perform the
        obligations of a Certificateholder as set forth therein or herein, in
        all respects as if it were a signatory hereto. This undertaking is made
        for the benefit of the Trust, the Owner Trustee and the Note Insurer;

                         (b) until one year and one day after the completion of
        the events specified in Section 8.1(d), not to, for any reason,
        institute proceedings for the Trust to be adjudicated a bankrupt or
        insolvent, or consent to the institution of bankruptcy or insolvency
        proceedings against the Trust, or file a petition seeking or consenting
        to reorganization or relief under any applicable federal or state law
        relating to bankruptcy, or consent to the appointment of a receiver,
        liquidator, assignee, trustee, sequestrator (or other similar official)
        of the Trust or a substantial part of its property, or cause or permit
        the Trust to make any assignment for the benefit of its creditors, or
        admit in writing its inability to pay its debts generally as they become
        due, or declare or effect a moratorium on its debt or take any action in
        furtherance of any such action; and

                         (c) with respect to the Class R Certificateholder, to
        execute and deliver such instruments of conveyance, assignment, grant,
        confirmation, as well as any financing statements, in each case, as the
        Note Insurer shall consider reasonably necessary in order to perfect the
        security interests of the Collateral Agent in the collateral pledged
        under the Spread Account Agreement.

                                       10

                  SECTION 2.11. Federal Income Tax Treatment of the Trust.

                  (a) The Trust will be treated as a partnership (rather than
        disregarded as a separate entity) for federal income tax purposes.
        Therefore, the following provisions shall apply:

                         (i) A separate capital account (each, a "Capital
        Account") shall be established and maintained for each Certificateholder
        by the Class R Certificateholder, in accordance with Treasury
        Regulations Section 1.704-1(b)(2)(iv). No Certificateholder shall be
        entitled to interest on its Capital Account or any capital contribution
        made by such Certificateholder to the Trust. For the avoidance of doubt,
        the initial amount in the Class C Certificateholder's Capital Account is
        equal to $7,954,545.45.

                         (ii) Distributions on the Class C and Class R
        Certificates shall be made in accordance with Sections 5.6 and 5.12 of
        the Sale and Servicing Agreement. Any distributions made to the Class C
        or Class R Certificateholder shall reduce the amount of such
        Certificateholder's Capital Account.

                         (iii) Upon termination of the Trust pursuant to Article
        VII, any amounts available for distribution to Certificateholders shall
        be distributed to the Certificateholders with positive Capital Account
        balances in accordance with such balances; provided, however, that any
        amounts remaining in the Supplemental Enhancement Account shall first be
        paid to the Class C Certificateholder until the principal balance of the
        Class C Certificate is reduced to zero and all amounts due and owing to
        the Class C Certificateholder are paid in full. For purposes of this
        Section 2.11, the Capital Account of each Certificateholder shall be
        determined after all adjustments made in accordance with this Section
        2.11 resulting from the Trust's operations and from all sales and
        dispositions of all or any part of the assets of the Trust. Any
        distributions pursuant to this Section 2.11 shall be made by the end of
        the Taxable Year in which the termination occurs (or, if later, within
        90 days after the date of the termination).

                         (iv) No Certificateholder shall be required to restore
        any deficit balance in its Capital Account. Furthermore, no
        Certificateholder shall be liable for the return of the Capital Account
        of, or of any capital contribution made to the Trust by, another
        Certificateholder.

                         (v) Profit and loss of the Trust for each Taxable Year
        shall be allocated to the Certificateholders in accordance with their
        respective Partnership Interests.

                         (vi) Notwithstanding any provision to the contrary, (i)
        any expense of the Trust that is a "nonrecourse deduction" within the
        meaning of Treasury Regulations Section 1.704-2(b)(1) shall be allocated
        in accordance with the Certificateholders' respective Partnership
        Interests, (ii) any expense of the Trust that is a "partner nonrecourse
        deduction" within the meaning of Treasury Regulations Section
        1.704-2(i)(2) shall be allocated in accordance with Treasury Regulations
        Section 1.704-2(i)(1), (iii) if there is a net decrease in Trust Minimum
        Gain within the meaning of Treasury

                                       11

        Regulations Section 1.704-2(f)(1) for any Taxable Year, items of gain
        and income shall be allocated among the Certificateholders in accordance
        with Treasury Regulations Section 1.704-2(f) and the ordering rules
        contained in Treasury Regulations Section 1.704-2(j), and (iv) if there
        is a net decrease in Nonrecourse Debt Minimum Gain within the meaning of
        Treasury Regulations Section 1.704-2(i)(4) for any Taxable Year, items
        of gain and income shall be allocated among the Certificateholders in
        accordance with Treasury Regulations Section 1.704-2(i)(4) and the
        ordering rules contained in Treasury Regulations Section 1.704-2(j). A
        Certificateholder's "interest in partnership profits" for purposes of
        determining its share of the nonrecourse liabilities of the Trust within
        the meaning of Treasury Regulations Section 1.752-3(a)(3) shall be such
        Certificateholder's Partnership Interest.

                         (vii) If a Certificateholder receives in any Taxable
        Year an adjustment, allocation, or distribution described in
        subparagraphs (4), (5), or (6) of Treasury Regulations Section
        1.704-1(b)(2)(ii)(d) that causes or increases a negative balance in such
        Certificateholder's Capital Account that exceeds the sum of such
        Certificateholder's shares of Trust Minimum Gain and Certificateholder
        Nonrecourse Debt Minimum Gain, as determined in accordance with Treasury
        Regulations Sections 1.704-2(g) and 1.704-2(i), such Certificateholder
        shall be allocated specially for such Taxable Year (and, if necessary,
        later Taxable Years) items of income and gain in an amount and manner
        sufficient to eliminate such negative Capital Account balance as quickly
        as possible as provided in Treasury Regulations Section
        1.704-1(b)(2)(ii)(d). After the occurrence of an allocation of income or
        gain to a Certificateholder in accordance with this Section 2.11, to the
        extent permitted by Regulations Section 1.704-1(b), items of expense or
        loss shall be allocated to such Certificateholder in an amount necessary
        to offset the income or gain previously allocated to such
        Certificateholder under this Section 2.11.

                         (viii) Loss shall not be allocated to a
        Certificateholder to the extent that such allocation would cause a
        deficit in such Certificateholder's Capital Account (after reduction to
        reflect the items described in Treasury Regulations Section
        1.704-1(b)(2)(ii)(d)(4), (5) and (6)) to exceed the sum of such
        Certificateholder's shares of Trust Minimum Gain and Certificateholder
        Nonrecourse Debt Minimum Gain. Any loss in excess of that limitation
        shall be allocated to all the Certificateholders in accordance with
        their respective Partnership Interests. After the occurrence of an
        allocation of loss to a Certificateholder in accordance with this
        Section 2.11(a)(vii), to the extent permitted by Treasury Regulations
        Section 1.704-1(b), profit shall be allocated to such Certificateholder
        in an amount necessary to offset the loss previously allocated to such
        Certificateholder under this Section 2.11(a)(vii).

                         (ix) If a Certificateholder transfers any part or all
        of its Partnership Interest and the transferee is admitted as a
        Certificateholder as provided herein (a "Transferee Certificateholder"),
        the distributive shares of the various items of profit and loss
        allocable among the Certificateholders during such Taxable Year shall be
        allocated between the transferor and the Transferee Certificateholder
        (at the election of the Certificateholders (including the transferor,
        but excluding the Transferee Certificateholder)) either (i) as if the
        Taxable Year had ended on the date of the transfer

                                       12

        or (ii) based on the number of days of such Taxable Year that each was a
        Certificateholder without regard to the results of Trust activities in
        the respective portions of such Taxable Year in which the transferor and
        Transferee Certificateholder were Certificateholders.

                         (x) "Profit" and "loss" and any items of income, gain,
        expense or loss referred to in this Section 2.11 shall be determined in
        accordance with federal income tax accounting principles as modified by
        Treasury Regulations Section 1.704-1(b)(2)(iv), excepting that that
        profits and losses shall not include items of income, gain, and expense
        that are specially allocated pursuant to Sections 2.11(a)(v),
        2.11(a)(vi) or 2.11(a)(vii) hereof. All allocations of income, profits,
        gains, expenses, and losses (and all items contained therein) for
        federal income tax purposes shall be identical to all allocations of
        such items set forth in this Section 2.11, except as otherwise required
        by Section 704(c) of the Code and Section 1.704-1(b)(4) of the Treasury
        Regulations.

                         (xi) The taxable year of the Trust (the "Taxable Year")
        shall be the calendar year or such other taxable year as may be required
        by Section 706(b) of the Code.

                         (xii) As provided in Section 5.7(c) of the Sale and
        Servicing Agreement, at the Servicer's expense, the Class R
        Certificateholder shall (i) cause a firm of nationally recognized
        accountants to prepare, and file or cause to file such tax returns
        relating to the Trust (including a partnership information return, IRS
        Form 1065) as are required by applicable federal, state, and local law,
        (ii) cause such returns to be signed in the manner required by law,
        (iii) make such elections as may from time to time be required or
        appropriate under any applicable law so as to maintain the Trust's
        classification as a partnership for tax purposes, (iv) prepare and
        deliver, or cause to be prepared and delivered, to the
        Certificateholders, no later than 120 days after the close of each
        Taxable Year (or no later than April l5th), a Schedule K-1, a copy of
        the Trust's informational tax return (IRS Form 1065), and such other
        reports (collectively, the "Annual Tax Reports") setting forth in
        sufficient detail all such information and data with respect to the
        transactions effected by or involving the Trust during such Taxable Year
        as shall enable each Certificateholder to prepare its federal, state,
        and local income tax returns in accordance with the laws then
        prevailing, and (v) collect, or cause to be collected, any withholding
        tax with respect to income or distributions to Certificateholders.

                         (xiii) The Class R Certificateholder shall be
        designated as the tax matters partner for the Trust within the meaning
        of Section 6231(a)(7) of the Code (the "Tax Matters Partner"). The Tax
        Matters Partner shall have the right and obligation to take all actions
        authorized and required, respectively, by the Code for the Tax Matters
        Partner. The Tax Matters Partner shall have the right to retain
        professional assistance in respect of any audit or controversy
        proceeding initiated with respect to the Trust by the Internal Revenue
        Service or any state or local taxing authority, and except as provided
        in Section 2.11(xi), all expenses and fees incurred by the Tax Matters
        Partner on behalf of the Trust shall constitute expenses of the Trust.
        In the event the Tax Matters Partner receives notice

                                       13

        of a final partnership adjustment under Section 6223(a)(2) of the Code,
        the Tax Matters Partner shall either (i) file a court petition for
        judicial review of such adjustment within the period provided under
        Section 6226(a) of the Code, a copy of which petition shall be mailed to
        all other Certificateholders on the date such petition is filed, or (ii)
        mail a written notice to all other Certificateholders, within such
        period, that describes the Tax Matters Partner's reasons for determining
        not to file such a petition.

             (b) Except as otherwise provided in this Section 2.11, the
    Certificateholders shall instruct the Class R Certificateholder in writing
    as to whether to make any available election under the Code or any
    applicable state or local tax law on behalf of the Trust. However, neither
    the Owner Trustee nor any Certificateholder will, under any circumstances,
    and at any time, make an election on IRS Form 8832 or otherwise, to classify
    the Trust as an association taxable as a corporation for federal, state or
    any other applicable tax purpose. Further, neither the Owner Trustee nor any
    Certificateholder will, under any circumstances, and at any time, cause the
    Trust to engage in any activity which would cause the Trust to become an
    association or, publicly traded partnership, taxable as corporation for
    federal income tax purposes.

                  SECTION 2.12. Derivatives Contracts.

                  (a) The Trust, at the direction of the Transferor, shall
        execute and deliver Derivative Contracts in such form as the Transferor
        shall approve, as evidenced conclusively by the Trust's execution
        thereof, such Derivative Contracts being solely for the benefit of the
        Class R Certificateholder; provided, however, that neither the execution
        and delivery of any such Derivative Contract nor the consummation of any
        transaction contemplated thereunder shall give rise to a non-exempt
        prohibited transaction described in Section 406 of ERISA or 4975(c)(1)
        of the Code. Any such Derivative Contract shall constitute a fully
        prepaid agreement. Any acquisition of a Derivative Contract shall be
        accompanied by (i) an Opinion of Counsel provided by, and at the expense
        of, the Transferor to the effect that the existence of the Derivative
        Contract will not cause the Trust to be characterized as a publicly
        traded partnership taxable as a corporation for federal income tax
        purposes; (ii) the prior written consent of the Note Insurer to the
        acquisition of such Derivative Contract, such consent not to be
        unreasonably withheld; provided that such consent shall not be deemed to
        be unreasonably withheld if the proposed Derivative Contract does not
        satisfy the requirements set forth in clauses (b) and (c) below; and
        (iii) confirmation from the Rating Agencies that the then-current rating
        of the Notes will not be qualified, reduced or withdrawn (without regard
        to the Policy) as a result of the acquisition of such Derivative
        Contract. Prior to the acquisition of any Derivative Contracts by the
        Trust, the Trust at the direction and expense of the Transferor, shall
        establish and maintain in its own name an Eligible Account (the
        "Derivative Contract Collection Account"), bearing a designation clearly
        indicating that the funds deposited therein are held for the benefit of
        the Trust on behalf of the Class R Certificateholder. All collections,
        proceeds and other amounts in respect of the Derivative Contracts
        payable by the Derivative Counterparty shall be deposited into the
        Derivative Contract Collection Account for distribution to the Class R
        Certificateholder on the Distribution Date following receipt thereof by
        the Trust.

                                       14

                         (b) No Derivative Contract shall provide for any
        payment obligation on the part of the Trust. Each Derivative Contract
        must (i) contain a non-petition covenant provision from the Derivative
        Counterparty, (ii) limit payment dates thereunder to Payment Dates and
        (iii) contain a provision limiting any cash payments due to the
        Derivative Counterparty on any day under such Derivative Contract solely
        to funds available therefore in the Collection Account to make payments
        to the Holder of the Class R Certificates on such Payment Date.

                         (c) Each Derivative Contract must (i) provide for the
        direct payment of any amounts by the Derivative Counterparty thereunder
        to the Certificate Account at least one Business Day prior to the
        related Payment Date, (ii) provide that in the event of the occurrence
        of an Event of Default, such Derivative Contract shall terminate upon
        the direction of a majority Percentage Interest of the Class R
        Certificateholders, (iii) prohibit the Derivative Counterparty from
        "setting-off" or "netting" other obligations of the Trust and its
        Affiliates against such Derivative Counterparty's payment obligations
        thereunder and (iv) satisfy the Rating Agency Condition.

                                  ARTICLE III.

                      Certificates and Transfer of Interest

                  SECTION 3.1. Initial Ownership. Upon the formation of the
Trust by the contribution by the Transferor pursuant to Section 2.5 and until
the issuance of the Certificates, the Transferor shall be the sole beneficiary
of the Trust.

                  SECTION 3.2. The Certificates. The Certificates shall be
executed on behalf of the Trust by manual or facsimile signature of an
authorized officer of the Owner Trustee. A Certificate bearing the manual or
facsimile signatures of individuals who were, at the time when such signatures
shall have been affixed, authorized to sign on behalf of the Trust, shall be
validly issued and entitled to the benefit of this Agreement, notwithstanding
that such individuals or any of them shall have ceased to be so authorized prior
to the authentication and delivery of such Certificate or did not hold such
offices at the date of authentication and delivery of such Certificate. A
transferee of a Certificate shall become a Certificateholder, and shall be
entitled to the rights and subject to the obligations of a Certificateholder
hereunder, upon due registration of such Certificate in such transferee's name
pursuant to Section 3.4.

                  SECTION 3.3. Authentication of Certificates.

                         (a) Concurrently with the conveyance of the Receivables
        to the Trust pursuant to the Sale and Servicing Agreement, the Owner
        Trustee shall cause the Class R Certificate to be executed on behalf of
        the Trust, authenticated and delivered to or upon the written order of
        the Transferor, signed by its chairman of the board, its president or
        any vice president, its treasurer or any assistant treasurer without
        further corporate action by the Transferor, in authorized denominations.
        No Class R Certificate shall entitle its holder to any benefit under
        this Agreement, or shall be valid for any purpose, unless there shall
        appear on such Class R Certificate a certificate of authentication
        substantially in the

                                       15

        form set forth in Exhibit B-1, executed by the Owner Trustee or WTC as
        the Owner Trustee's authentication agent, by manual signature; such
        authentication shall constitute conclusive evidence that such Class R
        Certificate shall have been duly authenticated and delivered hereunder.
        Each Class R Certificate shall be dated the date of its authentication.

                         (b) Concurrently with the conveyance of the Receivables
        to the Trust pursuant to the Sale and Servicing Agreement, and the
        execution, authentication and delivery of the Class R Certificate, the
        Owner Trustee shall cause the Class C Certificate to be executed on
        behalf of the Trust, authenticated and delivered to or upon the written
        order of the Transferor, signed by its chairman of the board, its
        president or any vice president, its treasurer or any assistant
        treasurer without further corporate action by the Transferor, in
        authorized denominations. No Class C Certificate shall entitle its
        holder to any benefit under this Agreement or the Sale and Servicing
        Agreement, or shall be valid for any purpose, unless there shall appear
        on such Class C Certificate a certificate of authentication
        substantially in the form set forth in Exhibit B-2, executed by the
        Owner Trustee or WTC as the Owner Trustee's authentication agent, by
        manual signature; such authentication shall constitute conclusive
        evidence that such Class C Certificate shall have been duly
        authenticated and delivered hereunder. Each Class C Certificate shall be
        dated the date of its authentication.

                  SECTION 3.4. Registration of Certificates

                         (a) The Certificate Registrar shall keep or cause to be
        kept, at the office or agency maintained pursuant to Section 2.2, a
        Certificate Register in which, subject to such reasonable regulations as
        it may prescribe, the Owner Trustee shall provide for the registration
        of the Certificates and of transfers and exchanges of the Certificates
        as herein provided. WTC shall be the initial Certificate Registrar.

                         (b) The Certificate Registrar shall provide the Trust
        Collateral Agent with the name and address of the Certificateholders on
        the Closing Date. Upon any transfer of a Certificate, the Certificate
        Registrar shall notify the Trust Collateral Agent of the name and
        address of the transferee in writing, by facsimile, on the day of such
        transfer.

                         (c) Upon surrender for registration of transfer of a
        Certificate at the office or agency maintained pursuant to Section 2.2,
        the Owner Trustee shall execute, authenticate and deliver (or shall
        cause WTC as its authenticating agent to authenticate and deliver), in
        the name of the designated transferee, a new Certificate dated the date
        of authentication by the Owner Trustee or any authenticating agent.

                         (d) A Certificate presented or surrendered for
        registration of transfer or exchange shall be accompanied by a written
        instrument of transfer in form satisfactory to the Owner Trustee and the
        Certificate Registrar duly executed by the Certificateholder or his
        attorney duly authorized in writing, with such signature guaranteed by
        an "eligible guarantor institution" meeting the requirements of the
        Certificate Registrar, which requirements include membership or
        participation in the Securities Transfer Agent's Medallion Program
        ("STAMP") or such other "signature guarantee program" as may be
        determined by the Certificate Registrar in addition to, or in
        substitution for, STAMP, all in

                                       16

        accordance with the Exchange Act. Each Certificate surrendered for
        registration of transfer or exchange shall be canceled and subsequently
        disposed of by the Owner Trustee in accordance with its customary
        practice.

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

                         (f) In furtherance of and in limitation of the
        foregoing, each Certificateholder, by acceptance of its Certificate,
        specifically acknowledges that it has no right to or interest in any
        monies at any time held in the Supplemental Enhancement Account or the
        Spread Account prior to the release of such monies pursuant to Section
        5.6(c) or Section 5.6(d) of the Sale and Servicing Agreement, such
        monies being held in trust for the benefit of the Class A Noteholders
        and the Note Insurer. Notwithstanding the foregoing, in the event that
        it is ever determined that provisions of the Sale and Servicing
        Agreement and the Spread Account Agreement shall be considered to
        constitute a security agreement and the Transferor and each
        Certificateholder hereby grant to the Collateral Agent for the benefit
        of the Class A Noteholders and the Note Insurer a first priority
        perfected security interest in such amounts, to be applied as set forth
        in Section 3.03 of the Spread Account Agreement and Section 5.6 of the
        Sale and Servicing Agreement. In addition, the Class R
        Certificateholder, by acceptance of its Certificate, hereby appoints the
        Transferor as its agent to pledge a first priority perfected security
        interest in the Spread Account, and any amounts held therein from time
        to time to the Collateral Agent pursuant to the Spread Account Agreement
        and agrees to execute and deliver such instruments of conveyance,
        assignment, grant and confirmation, as well as financing statements, in
        each case as the Note Insurer shall consider reasonably necessary in
        order to perfect the Collateral Agent's Security Interest in the
        Collateral (as such terms are defined in the Spread Account Agreement).

                  SECTION 3.5. Mutilated, Destroyed, Lost or Stolen
Certificates. If (a) any mutilated Certificate shall be surrendered to the
Certificate Registrar, or if the Certificate Registrar shall receive evidence to
its satisfaction of the destruction, loss or theft of any Certificate and (b)
there shall be delivered to the Certificate Registrar, the Owner Trustee and
(unless a Note Insurer Default shall have occurred and be continuing) the Note
Insurer, such security or indemnity as may be required by them to save each of
them harmless, then in the absence of notice that such Certificate shall have
been acquired by a bona fide purchaser, the Owner Trustee on behalf of the Trust
shall execute and the Owner Trustee, or WTC, as the Owner Trustee's
authenticating agent, shall authenticate and deliver, in exchange for or in lieu
of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate
of like class, tenor and denomination. In connection with the issuance of any
new Certificate under this Section, the Owner Trustee or the Certificate
Registrar may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection therewith. Any duplicate
Certificate issued pursuant to this Section shall constitute conclusive evidence
of an ownership interest in the Trust, as if originally issued, whether or not
the lost, stolen or destroyed Certificate shall be found at any time.

                                       17

                  SECTION 3.6. Persons Deemed Certificateholders. Every Person
by virtue of becoming a Certificateholder in accordance with this Agreement
shall be deemed to be bound by the terms of this Agreement. Prior to due
presentation of a Certificate for registration of transfer, the Owner Trustee,
the Certificate Registrar and the Note Insurer and any agent of the Owner
Trustee, the Certificate Registrar and the Note Insurer, may treat the person in
whose name any Certificate shall be registered in the Certificate Register as
the owner of such Certificate for the purpose of receiving distributions
pursuant to the Sale and Servicing Agreement and the Spread Account Agreement
and for all other purposes whatsoever, and none of the Owner Trustee, the
Certificate Registrar or the Note Insurer nor any agent of the Owner Trustee,
the Certificate Registrar or the Note Insurer shall be bound by any notice to
the contrary.

                  SECTION 3.7. Transfer of Certificates.

                         (a) No transfer of a Certificate shall be made unless
        (I) such transfer (x) is made pursuant to an effective registration
        statement under the Securities Act and any applicable state securities
        laws or (y) is exempt from the registration requirements under the
        Securities Act and such state securities laws and (II) such transfer is
        to a Person that satisfies the requirements of paragraph (a)(2)(i) or
        (a)(2)(ii) of Rule 3a-7 as then in effect or any successor rule ("Rule
        3a-7") under the Investment Company Act.

                         (b) Each prospective purchaser of a Non-Registered
        Certificate not held in book-entry form (other than with respect to the
        initial transfer of any such Certificate by the Transferor) shall
        deliver a completed and duly executed Transferee's Certificate (in the
        form of Exhibit C hereto for "qualified institutional buyers" as defined
        in Rule 144A of the Securities Act ("Rule 144A") or Exhibit D hereto for
        "accredited investors" as defined in Rule 501(a)(1), (2), (3) or (7) of
        Regulation D promulgated under the Securities Act) to the Owner Trustee
        and to the Transferor for inspection prior to effecting any requested
        transfer. Each prospective seller of a Non-Registered Certificate (other
        than with respect to the initial transfer of any such Certificate by the
        Transferor) shall deliver a completed and duly executed Transferor's
        Certificate (in the form of Exhibit E hereto) to the Owner Trustee for
        inspection prior to effecting any requested transfer. The Transferor and
        the Owner Trustee may conclusively rely upon the information contained
        in any such Transferee's Certificate or Transferor's Certificate in the
        absence of actual knowledge to the contrary.

                         (c) In connection with any transfer, the Owner Trustee
        may (except in the case of (x) the initial transfer of any such
        Certificate by the Transferor, (y) a transfer to a "qualified
        institutional buyer" who delivers a Transferee's Certificate in the form
        of Exhibit C hereto, or (z) a transfer to a "accredited investor" who
        delivers a Transferee's Certificate in the form of Exhibit D hereto)
        require an opinion of counsel satisfactory to the Owner Trustee and the
        Transferor to the effect that such transfer may be effected without
        registration under the Securities Act, which opinion of counsel, if so
        required, shall be addressed to the Transferor and the Owner Trustee and
        shall be secured at the expense of the holder of a Certificate. The
        Owner Trustee may conclusively rely upon the representation of any
        purchaser made to the Owner Trustee, and upon such opinion of counsel,
        and shall be fully protected in so doing.

                                       18

                         (d) No transfer of a Certificate shall be made to any
        Person unless the Owner Trustee has received a certificate
        (substantially in the form of Exhibit F hereto) from such transferee to
        the effect that such transferee is not a Plan, and is not acting on
        behalf of or investing the assets of a Plan. The preparation and
        delivery of the certificate referred to above shall not be an expense of
        the Trust, the Owner Trustee or the Transferor but shall be borne by the
        transferee. Each transferee of a beneficial ownership interest in a
        book-entry Certificate shall be deemed to represent that it is not a
        Plan and is not acting on behalf of or investing the assets of a Plan.

                         (e) No transfer of a Certificate shall be made to any
        Person unless the Owner Trustee and Transferor have received a
        certificate (substantially in the form of Exhibit G hereto) from such
        transferee to the effect that (i) such transferee is acquiring such
        certificate for its own behalf and is not acting as agent or custodian
        for any other Person or entity in connection with such acquisition, (ii)
        if the transferee is a partnership, grantor trust or S corporation for
        federal income tax purposes (a "Flow Through Entity"), any certificate
        (and interest in the Trust in the aggregate) owned by such Flow Through
        Entity will represent less than 50% of the value of the assets owned by
        such Flow Through Entity and no special allocation of income, gain,
        loss, deduction or credit from such certificate will be made among the
        beneficial owners of such Flow Through Entity, and (iii) the transferee
        is a United States Person within the meaning of the Code.

                         (f) No transfer, pledge or encumbrance of the Class R
        Certificate shall be made to any Person unless (A) such Person is a
        Rated Entity, a Bankruptcy Remote Entity or a statutory trust
        established under Chapter 38 of Title 12 of the Delaware Code, 12 Del.
        C. ss. 3801 et seq. that is a Bankruptcy Remote Entity, or (B) such
        pledge is made to GCFP pursuant to the Credit and Security Agreement;
        provided, however, that in the event GCFP forecloses on its security
        interest in the Class R Certificate, the Class R Certificate may be
        registered in the name of a Person that is not a Bankruptcy Remote
        Entity for a period not to exceed two (2) Business Days. Each
        Certificate shall at all times be registered in the name of a single
        holder.

                         (g) The Certificates shall bear legends stating that
        they have not been registered under the Securities Act and are subject
        to the restrictions on transfer described herein. By purchasing a
        Certificate, each purchaser shall be deemed to have agreed to these
        restrictions on transfer.

                         (h) In order to preserve the exemption for resales and
        transfers provided by Rule 144A, the Transferor shall provide to any
        Holder of a Non-Registered Certificate and any prospective purchaser
        designated by such Holder, upon request of such Holder or such
        prospective purchaser, such information required by Rule 144A as will
        enable the resale of such Non-Registered Certificate to be made pursuant
        to Rule 144A. The Owner Trustee shall cooperate with the Transferor in
        providing the Transferor such information regarding the Non-Registered
        Certificates, the Trust Assets and other matters regarding the Trust as
        the Transferor shall reasonably request to meet its obligations under
        the preceding sentence.

                                       19

                         (i) Notwithstanding any provision of this Agreement to
        the contrary, any transfer of Certificates that causes the total number
        of beneficial owners of Certificates to exceed ninety-nine (99) shall be
        null and void and the Certificate Register shall be amended to reflect
        such voided transfer.

                  SECTION 3.8. Disposition In Whole But Not In Part.Each of the
Class C Certificate and the Class R Certificate may be transferred in whole but
not in part. Any attempted transfer of any Certificate that would divide the
beneficial ownership in the Trust shall be void.

                                  ARTICLE IV.

                         Voting Rights and Other Actions

                  SECTION 4.1. Prior Notice to Certificateholders with Respect
to Certain Matters. With respect to the following matters, the Owner Trustee
shall not take action unless at least thirty (30) days before the taking of such
action, the Owner Trustee shall have notified the Certificateholders and the
Note Insurer in writing of the proposed action and the Certificateholders shall
not have notified the Owner Trustee in writing prior to the 30th day after such
notice is given that any Certificateholder has withheld consent or provided
alternative direction:

                         (a) the election by the Trust to file an amendment to
        the Certificate of Trust (unless such amendment is required to be filed
        under the Statutory Trust Act or unless such amendment would not
        materially and adversely affect the interests of the
        Certificateholders);

                         (b) the amendment of the Indenture by a supplemental
        indenture in circumstances where the consent of any Noteholder is
        required;

                         (c) the amendment of the Indenture by a supplemental
        indenture in circumstances where the consent of any Noteholder is not
        required and such amendment materially adversely affects the interest of
        any Certificateholder; or

                         (d) except pursuant to Section 13.1 of the Sale and
        Servicing Agreement, the amendment, change or modification of the Sale
        and Servicing Agreement, except to cure any ambiguity or defect or to
        amend or supplement any provision in a manner that would not materially
        adversely affect the interests any Certificateholder.

                  The Owner Trustee shall notify each Certificateholder in
writing of any appointment of a successor Note Registrar or Trust Collateral
Agent within five Business Days after receipt of notice thereof.

                  SECTION 4.2. Action by Certificateholders with Respect to
Certain Matters. The Owner Trustee shall not have the power, except upon the
direction of the Controlling Party or, after the Class A Notes and Reimbursement
Obligations have been paid and full and the expiration of the Policy in
accordance with its terms, each Certificateholder in accordance with the Basic
Documents, to (a) remove the Servicer under the Sale and Servicing Agreement

                                       20

pursuant to Section 9.1 thereof or (b) except as expressly provided in the Basic
Documents, sell the Receivables after the termination of the Indenture. The
Owner Trustee shall take the actions referred to in the preceding sentence only
upon written instructions signed by the Controlling Party or each
Certificateholder, as applicable and the furnishing of indemnification
satisfactory to the Owner Trustee by each Certificateholder. To the fullest
extent permitted by applicable law, the Owner Trustee shall not have the power
to, and shall not, commence any proceeding or other actions contemplated by
Section 2.10 (b).

                  SECTION 4.3. Restrictions on Certificateholders' Power.

                         (a) No Certificateholder shall direct the Owner Trustee
        to take or refrain from taking any action if such action or inaction
        would be contrary to any obligation of the Trust or the Owner Trustee
        under this Agreement or any of the Basic Documents or would be contrary
        to Section 2.3 nor shall the Owner Trustee be obligated to follow any
        such direction, if given.

                         (b) No Certificateholder shall have any right by virtue
        or by availing itself of any provisions of this Agreement to institute
        any suit, action, or proceeding in equity or at law upon or under or
        with respect to this Agreement or any Basic Document, unless such
        Certificateholder is the Instructing Party pursuant to Section 5.3 and
        unless such Certificateholder previously shall have given to the Owner
        Trustee a written notice of default and of the continuance thereof, as
        provided in this Agreement, and also unless such Certificateholder shall
        have made written request upon the Owner Trustee to institute such
        action, suit or proceeding in its own name as Owner Trustee under this
        Agreement and shall have offered to the Owner Trustee such reasonable
        indemnity as it may require against the costs, expenses and liabilities
        to be incurred therein or thereby, and the Owner Trustee, for thirty
        (30) days after its receipt of such notice, request, and offer of
        indemnity, shall have neglected or refused to institute any such action,
        suit, or proceeding, and during such 30-day period no request or waiver
        inconsistent with such written request has been given to the Owner
        Trustee pursuant to and in compliance with this Section or Section 5.3.
        For the protection and enforcement of the provisions of this Section,
        the Certificateholders and the Owner Trustee shall be entitled to such
        relief as can be given either at law or in equity.

                  SECTION 4.4. Rights of Note Insurer. Notwithstanding anything
to the contrary in the Basic Documents, without the prior written consent of the
Note Insurer (so long as no Note Insurer Default shall have occurred and be
continuing), the Owner Trustee shall not (i) remove the Servicer, (ii) initiate
any claim, suit or proceeding by the Trust or compromise any claim, suit or
proceeding brought by or against the Trust, other than with respect to the
enforcement of any Receivable or any rights of the Trust thereunder, (iii)
authorize the merger or consolidation of the Trust with or into any other
statutory trust or other entity (other than in accordance with Section 3.10 of
the Indenture) or (iv) amend the Certificate of Trust (except as may be required
by the Statutory Trust Act).

                                       21

                                   ARTICLE V.

                      Authority and Duties of Owner Trustee

                  SECTION 5.1. General Authority.

                         (a) The Owner Trustee is authorized and directed to
        execute and deliver the Basic Documents to which the Trust is named as a
        party and each certificate or other document attached as an exhibit to
        or contemplated by the Basic Documents to which the Trust is named as a
        party and any amendment thereto, in each case, in such form as the
        Transferor shall approve as evidenced conclusively by the Owner
        Trustee's execution thereof, and on behalf of the Trust, to direct the
        Indenture Trustee to authenticate and deliver the Class A-1 Notes in the
        aggregate principal amount of $63,000,000, the Class A-2 Notes in the
        aggregate principal amount of $106,000,000, the Class A-3 Notes in the
        aggregate principal amount of $74,000,000 and the Class A-4 Notes in the
        aggregate principal amount of $107,000,000. In addition to the
        foregoing, the Owner Trustee is authorized, but shall not be obligated,
        to take all actions required of the Trust pursuant to the Basic
        Documents. The Owner Trustee is further authorized from time to time to
        take such action as the Instructing Party recommends with respect to the
        Basic Documents so long as such activities are consistent with the terms
        of the Basic Documents.

                         (b) The Owner Trustee shall sign on behalf of the Trust
        any applicable tax returns of the Trust, unless applicable law requires
        a Certificateholder to sign such documents.

                  SECTION 5.2. General Duties(a) . It shall be the duty of the
Owner Trustee:

                  (i) to discharge (or cause to be discharged) all of its
        responsibilities pursuant to the terms of this Agreement and to
        administer the Trust in the interest of the Certificateholders, subject
        to the Basic Documents and in accordance with the provisions of this
        Agreement; and

                  (ii) to execute on behalf of the Trust any license, approval,
        authorization or registration required by any governmental authority,
        bureau or agency, as notified by the Servicer and presented to the Owner
        Trustee in final execution form, with respect to which the failure to
        maintain any such license, approval, authorization or registration would
        have an adverse effect on the validity and enforceability of the
        Indenture, the Certificates, the Notes or the Owner Trust Estate.

                  Notwithstanding the foregoing, the Owner Trustee shall be
deemed to have discharged its duties and responsibilities hereunder and under
the Basic Documents to the extent the Servicer has agreed in the Sale and
Servicing Agreement to perform any act or to discharge any duty of the Trust or
the Owner Trustee hereunder or under any Basic Document, and the Owner Trustee
shall not be liable for the default or failure of the Servicer to carry out its
obligations under the Sale and Servicing Agreement.

                                       22

                  SECTION 5.3. Action upon Instruction.

                         (a) Subject to Article IV and the terms of the Spread
        Account Agreement, the Note Insurer (so long as a Note Insurer Default
        shall not have occurred and be continuing) or the Class C
        Certificateholder (or if the Class C Certificate Balance has been
        reduced to zero and all amounts due to the Class C Certificateholder
        have been paid, the Class R Certificateholder) (if a Note Insurer
        Default shall have occurred and be continuing) (the "Instructing Party")
        shall have the exclusive right to direct the actions of the Owner
        Trustee in the management of the Trust, so long as such instructions are
        not inconsistent with the express terms set forth herein or in any Basic
        Document. The Instructing Party shall not instruct the Owner Trustee in
        a manner inconsistent with this Agreement or the Basic Documents.

                         (b) The Owner Trustee shall not be required to take any
        action hereunder or under any Basic Document if the Owner Trustee shall
        have reasonably determined, or shall have been advised by counsel, that
        such action is likely to result in liability on the part of the Owner
        Trustee or is contrary to the terms hereof or of any Basic Document or
        is otherwise contrary to law.

                         (c) Whenever the Owner Trustee is unable to decide
        between alternative courses of action permitted or required by the terms
        of this Agreement or any Basic Document, the Owner Trustee shall
        promptly give notice (in such form as shall be appropriate under the
        circumstances) to the Instructing Party requesting instruction as to the
        course of action to be adopted, and to the extent the Owner Trustee acts
        in good faith in accordance with any written instruction of the
        Instructing Party received, the Owner Trustee shall not be liable on
        account of such action to any Person. If the Owner Trustee shall not
        have received appropriate instruction within ten days of such notice (or
        within such shorter period of time as reasonably may be specified in
        such notice or may be necessary under the circumstances) it may, but
        shall be under no duty to, take or refrain from taking such action, not
        inconsistent with this Agreement or the Basic Documents, as it shall
        deem to be in the best interests of the Certificateholders, and shall
        have no liability to any Person for such action or inaction.

                         (d) In the event that the Owner Trustee is unsure as to
        the application of any provision of this Agreement or any Basic Document
        or any such provision is ambiguous as to its application, or is, or
        appears to be, in conflict with any other applicable provision, or in
        the event that this Agreement permits any determination by the Owner
        Trustee or is silent or is incomplete as to the course of action that
        the Owner Trustee is required to take with respect to a particular set
        of facts, the Owner Trustee may give notice (in such form as shall be
        appropriate under the circumstances) to the Instructing Party requesting
        instruction and, to the extent that the Owner Trustee acts or refrains
        from acting in good faith in accordance with any such instruction
        received, the Owner Trustee shall not be liable, on account of such
        action or inaction, to any Person. If the Owner Trustee shall not have
        received appropriate instruction within 10 days of such notice (or
        within such shorter period of time as reasonably may be specified in
        such notice or may be necessary under the circumstances) it may, but
        shall be under no duty to, take or refrain from taking such action, not
        inconsistent with this Agreement or the Basic

                                       23

        Documents, as it shall deem to be in the best interests of the
        Certificateholders, and shall have no liability to any Person for such
        action or inaction.

                  SECTION 5.4. No Duties Except as Specified in this Agreement
or in Instructions. The Owner Trustee shall not have any duty or obligation to
manage, make any payment with respect to, register, record, sell, dispose of, or
otherwise deal with the Owner Trust Estate, or to otherwise take or refrain from
taking any action under, or in connection with, any document contemplated hereby
to which the Owner Trustee is a party, except as expressly provided by the terms
of this Agreement or in any document or written instruction received by the
Owner Trustee pursuant to Section 5.3; and no implied duties or obligations
shall be read into this Agreement or any Basic Document against the Owner
Trustee. The Owner Trustee shall have no responsibility for filing any financing
or continuation statement in any public office at any time or to otherwise
perfect or maintain the perfection of any security interest or lien granted to
it hereunder or to prepare or file any Commission filing for the Trust or to
record this Agreement or any Basic Document. WTC nevertheless agrees that it
will, at its own cost and expense, promptly take all action as may be necessary
to discharge any Liens on any part of the Owner Trust Estate that result from
actions by, or claims against, WTC and that are not related to the ownership or
the administration of the Owner Trust Estate.

                  SECTION 5.5. No Action Except under Specified Documents or
Instructions. The Owner Trustee shall not manage, control, use, sell, dispose of
or otherwise deal with any part of the Owner Trust Estate except (i) in
accordance with the powers granted to and the authority conferred upon the Owner
Trustee pursuant to this Agreement, (ii) in accordance with the Basic Documents
and (iii) in accordance with any document or instruction delivered to the Owner
Trustee pursuant to Section 5.3.

                  SECTION 5.6. Restrictions. The Owner Trustee shall not take
any action (a) that is inconsistent with the purposes of the Trust set forth in
Section 2.3 or (b) that, to the actual knowledge of the Owner Trustee, would
result in the Trust's becoming an association, or publicly traded partnership,
taxable as a corporation for federal income tax purposes. The Instructing Party
shall not direct the Owner Trustee to take action that would violate the
provisions of this Section.

                                  ARTICLE VI.

                          Concerning the Owner Trustee

                  SECTION 6.1. Acceptance of Trusts and Duties. The Owner
Trustee accepts the trusts hereby created and agrees to perform its duties
hereunder with respect to such trusts but only upon the terms of this Agreement.
The Owner Trustee also agrees to disburse all moneys actually received by it
constituting part of the Owner Trust Estate upon the terms of the Basic
Documents and this Agreement. The Owner Trustee shall not be answerable or
accountable hereunder or under any Basic Document under any circumstances,
except (i) for its own willful misconduct, bad faith or negligence, (ii) in the
case of the inaccuracy of any representation or warranty contained in Section
6.3 expressly made by the Owner Trustee, (iii) for liabilities arising from the
failure of WTC to perform obligations expressly undertaken by it in the last
sentence of Section 5.4 hereof, (iv) for any investments issued by the Owner
Trustee or any

                                       24

branch or Affiliate thereof in its commercial capacity or (v) for taxes, fees or
other charges on, based on or measured by, any fees, commissions or compensation
received by the Owner Trustee. In particular, but not by way of limitation (and
subject to the exceptions set forth in the preceding sentence):

                         (a) the Owner Trustee shall not be liable for any error
        of judgment made in good faith by a Responsible Officer of the Owner
        Trustee;

                         (b) the Owner Trustee shall not be liable with respect
        to any action taken or omitted to be taken by it in accordance with the
        instructions of the Instructing Party, the Servicer or any
        Certificateholder;

                         (c) no provision of this Agreement or any Basic
        Document shall require the Owner Trustee to expend or risk funds or
        otherwise incur any financial liability in the performance of any of its
        rights or powers hereunder or under any Basic Document if the Owner
        Trustee shall have reasonable grounds for believing that repayment of
        such funds or adequate indemnity against such risk or liability is not
        reasonably assured or provided to it;

                         (d) under no circumstances shall the Owner Trustee be
        liable for indebtedness evidenced by or arising under any of the Basic
        Documents, including the principal of and interest on the Notes;

                         (e) the Owner Trustee shall not be responsible for or
        in respect of the validity or sufficiency of this Agreement or for the
        due execution hereof by the Transferor or for the form, character,
        genuineness, sufficiency, value or validity of any of the Owner Trust
        Estate or for or in respect of the validity or sufficiency of the Basic
        Documents, other than the certificate of authentication on a
        Certificate, and the Owner Trustee shall in no event assume or incur any
        liability, duty or obligation to the Note Insurer, Indenture Trustee,
        Trust Collateral Agent, the Collateral Agent, any Noteholder or to any
        Certificateholder, other than as expressly provided for herein and in
        the Basic Documents;

                         (f) the Owner Trustee shall not be liable for the
        default or misconduct of the Note Insurer, the Indenture Trustee, the
        Trust Collateral Agent or the Servicer under any of the Basic Documents
        or otherwise and the Owner Trustee shall have no obligation or liability
        to perform the obligations under this Agreement or the Basic Documents
        that are required to be performed by the Indenture Trustee under the
        Indenture or the Trust Collateral Agent or the Servicer under the Sale
        and Servicing Agreement;

                         (g) the Owner Trustee shall be under no obligation to
        exercise any of the rights or powers vested in it by this Agreement, or
        to institute, conduct or defend any litigation under this Agreement or
        otherwise or in relation to this Agreement or any Basic Document, at the
        request, order or direction of the Instructing Party or a
        Certificateholder, unless such Instructing Party or such
        Certificateholder has offered to the Owner Trustee security or indemnity
        reasonably satisfactory to it against the costs, expenses and
        liabilities that may be incurred by the Owner Trustee therein or
        thereby. The right of the Owner Trustee to perform any discretionary act
        enumerated in this Agreement or in any

                                       25

        Basic Document shall not be construed as a duty, and the Owner Trustee
        shall not be answerable for other than its negligence, bad faith or
        willful misconduct in the performance of any such act;

                         (h) with respect to the Note Insurer or Instructing
        Party, the Owner Trustee undertakes to perform or observe only such of
        the covenants and obligations of the Owner Trustee as are expressly set
        forth in this Agreement, and no implied covenants or obligations with
        respect to the Note Insurer or Instructing Party shall be read into this
        Agreement or the other Basic Documents against the Owner Trustee. The
        Owner Trustee shall not be deemed to owe any fiduciary duty to the Note
        Insurer or Instructing Party, and shall not be liable to any such person
        for the failure of the Trust to perform its obligations to such persons
        other than in accordance with Section 10.12 of this Agreement in the
        performance of its express obligations under this Agreement; and

                         (i) notwithstanding anything to the contrary herein or
        in any other document, the Owner Trustee shall not be required to
        execute, deliver or certify on behalf of the Trust, the Servicer, the
        Transferor or any other Person any filings, certificates, affidavits or
        other instruments required by the SEC or required under the
        Sarbanes-Oxley Act of 2002. Notwithstanding any Person's right to
        instruct the Owner Trustee, neither the Owner Trustee nor any agent,
        employee, director or officer of the Owner Trustee shall have any
        obligation to execute any certificates or other documents required by
        the SEC or required pursuant to the Sarbanes-Oxley Act of 2002 or the
        rules and regulations promulgated thereunder, and the refusal to comply
        with any such instructions shall not constitute a default or breach
        under this Agreement or any other document in connection herewith.

                  SECTION 6.2. Furnishing of Documents. The Owner Trustee shall
furnish to each Certificateholder promptly upon receipt of a written request
therefor, duplicates or copies of all reports, notices, requests, demands,
certificates, financial statements and any other instruments furnished to the
Owner Trustee under the Basic Documents.

                  SECTION 6.3. Representations and Warranties. The Owner Trustee
and WTC hereby represent and warrant to the Transferor, each Certificateholder
and the Note Insurer (which shall have relied on such representations and
warranties in issuing the Policy), that:

                         (a) It is a Delaware banking corporation, duly
        organized and validly existing in good standing under the laws of the
        State of Delaware and it holds all grants, authorizations, consents,
        orders and approvals from all governmental authorities necessary under
        the laws of the State of Delaware to carry on its true business as now
        conducted. It has all requisite corporate power and authority to
        execute, deliver and perform its obligations under this Agreement.

                         (b) It has taken all corporate action necessary to
        authorize the execution and delivery by it of this Agreement, and this
        Agreement will be executed and delivered by one of its officers who is
        duly authorized to execute and deliver this Agreement on its behalf.

                                       26

                         (c) Neither the execution nor the delivery by it of
        this Agreement, nor the consummation by it of the transactions
        contemplated hereby nor compliance by it with any of the terms or
        provisions hereof will contravene any Delaware state or federal law,
        governmental rule or regulation governing the banking or trust powers of
        the Owner Trustee or any judgment or order binding on it, or constitute
        any default under its charter documents or by-laws or any indenture,
        mortgage, contract, agreement or instrument to which it is a party or by
        which any of its properties may be bound, or result in the creation or
        imposition of any lien, charge or encumbrance on the Trust Assets
        resulting from actions by or claims against the Owner Trustee in its
        individual capacity except as expressly contemplated by this Agreement
        or Indenture.

                         (d) No consent, approval, authorization or order of, or
        filing with, any court or regulatory, supervisory or government agency
        or body is required by the Owner Trustee under Delaware law in
        connection with the execution, delivery and performance by the Owner
        Trustee of this Agreement or the consummation by the Owner Trustee of
        the transactions contemplated hereby (except for the filing of the
        Certificate of Trust with the Secretary of State).

                         (e) The Owner Trustee has no present intent to cause a
        voluntary bankruptcy of the Trust.

                  SECTION 6.4. Reliance; Advice of Counsel.

                         (a) The Owner Trustee shall incur no liability to
        anyone in acting upon any signature, instrument, notice, resolution,
        request, consent, order, certificate, report, opinion, bond or other
        document or paper believed by it to be genuine and believed by it to be
        signed by the proper party or parties. The Owner Trustee may accept a
        certified copy of a resolution of the board of directors or other
        governing body of any corporate party as conclusive evidence that such
        resolution has been duly adopted by such body and that the same is in
        full force and effect. As to any fact or matter the method of the
        determination of which is not specifically prescribed herein, the Owner
        Trustee may for all purposes hereof rely on a certificate, signed by the
        president or any vice president or by the treasurer, secretary or other
        authorized officers of the relevant party, as to such fact or matter,
        and such certificate shall constitute full protection to the Owner
        Trustee for any action taken or omitted to be taken by it in good faith
        in reliance thereon.

                         (b) In the exercise or administration of the trusts
        hereunder and in the performance of its duties and obligations under
        this Agreement or the Basic Documents, the Owner Trustee (i) may act
        directly or through its agents or attorneys pursuant to agreements
        entered into with any of them, and the Owner Trustee shall not be liable
        for the conduct or misconduct of such agents or attorneys if such agents
        or attorneys shall have been selected by the Owner Trustee with
        reasonable care, and (ii) may consult with counsel, accountants and
        other skilled persons to be selected with reasonable care and employed
        by it. The Owner Trustee shall not be liable for anything done, suffered
        or omitted in good faith by it in accordance with the written opinion or
        advice of any such counsel, accountants or other such persons and
        according to such opinion not contrary to this Agreement or any Basic
        Document.

                                       27

                  SECTION 6.5. Not Acting in Individual Capacity. Except as
provided in Article II and this Article VI, in accepting the trusts hereby
created WTC acts solely as Owner Trustee hereunder and not in its individual
capacity and all Persons having any claim against the Owner Trustee by reason of
the transactions contemplated by this Agreement or any Basic Document shall look
only to the Owner Trust Estate for payment or satisfaction thereof.

                  SECTION 6.6. Owner Trustee Not Liable for Certificates or
Receivables. The recitals contained herein and in the Certificates (other than
the signature and countersignature of the Owner Trustee on the Certificates)
shall be taken as the statements of the Transferor and the Owner Trustee assumes
no responsibility for the correctness thereof. The Owner Trustee makes no
representations as to the validity or sufficiency of this Agreement, of any
Basic Document or of the Certificates (other than the signature and
countersignature of the Owner Trustee on the Certificates) or the Notes, or of
any Receivable or related documents. The Owner Trustee shall at no time have any
responsibility or liability for or with respect to the legality, validity and
enforceability of any Receivable, or the perfection and priority of any security
interest created by any Receivable in any Financed Vehicle or the maintenance of
any such perfection and priority, or for or with respect to the sufficiency of
the Owner Trust Estate or its ability to generate the payments to be distributed
to each Certificateholder under this Agreement or the Noteholders under the
Indenture, including: the existence, condition and ownership of any Financed
Vehicle; the existence and enforceability of any insurance thereon; the
existence and contents of any Receivable on any computer or other record
thereof; the validity of the assignment of any Receivable to the Trust or of any
intervening assignment; the completeness of any Receivable; the performance or
enforcement of any Receivable; the compliance by the Transferor, the Servicer or
any other Person with any warranty or representation made under any Basic
Document or in any related document or the accuracy of any such warranty or
representation or any action of the Indenture Trustee or the Servicer or any
subservicer taken in the name of the Owner Trustee.

                  SECTION 6.7. Owner Trustee May Own Notes. The Owner Trustee in
its individual capacity may become the owner or pledgee of the Notes and may
deal with any Certificateholder, the Transferor, the Indenture Trustee and the
Servicer in banking transactions with the same rights as it would have if it
were not Owner Trustee.

                  SECTION 6.8. Payments from Owner Trust Estate. All payments to
be made by the Owner Trustee under this Agreement or any of the Basic Documents
to which the Trust or the Owner Trustee is a party shall be made only from the
income and proceeds of the Owner Trust Estate and only to the extent that the
Owner Trust shall have received income or proceeds from the Owner Trust Estate
to make such payments in accordance with the terms hereof. WTC, or any successor
thereto, in its individual capacity, shall not be liable for any amounts payable
under this Agreement or any of the Basic Documents to which the Trust or the
Owner Trustee is a party.

                  SECTION 6.9. Doing Business in Other Jurisdictions.
Notwithstanding anything contained to the contrary, neither WTC or any successor
thereto, nor the Owner Trustee shall be required to take any action in any
jurisdiction other than in the State of Delaware if the taking of such action
will, even after the appointment of a co-trustee or separate trustee in
accordance with Section 9.5 hereof, (i) require the consent or approval or
authorization or order

                                       28

of or the giving of notice to, or the registration with or the taking of any
other action in respect of, any state or other governmental authority or agency
of any jurisdiction other than the State of Delaware; (ii) result in any fee,
tax or other governmental charge under the laws of the State of Delaware
becoming payable by WTC (or any successor thereto); or (iii) subject WTC (or any
successor thereto) to personal jurisdiction in any jurisdiction other than the
State of Delaware for causes of action arising from acts unrelated to the
consummation of the transactions by WTC (or any successor thereto) or the Owner
Trustee, as the case may be, contemplated hereby.

                                  ARTICLE VII.

                          Compensation of Owner Trustee

                  SECTION 7.1. Owner Trustee's Fees and Expenses. The Owner
Trustee shall receive as compensation for its services hereunder such fees as
have been separately agreed upon before the date hereof between LBAC and the
Owner Trustee, and the Owner Trustee shall be entitled to be reimbursed by LBAC
for its other reasonable expenses hereunder, including the reasonable
compensation, expenses and disbursements of such agents, representatives,
experts and counsel as the Owner Trustee may employ in connection with the
exercise and performance of its rights and its duties hereunder and under the
Basic Documents.

                  SECTION 7.2. Indemnification. Each of the Owner Trustee and
WTC and its officers, directors, successors, assigns, agents and servants shall
be indemnified by the Servicer in and to the extent set forth in Section
8.2(a)(v) of the Sale and Servicing Agreement.

                  SECTION 7.3. Payments to the Owner Trustee. Any amounts paid
to the Owner Trustee pursuant to this Article VII shall be deemed not to be a
part of the Owner Trust Estate immediately after such payment.

                  SECTION 7.4. Non-recourse Obligations. Notwithstanding
anything in this Agreement or any Basic Document, the Owner Trustee agrees in
its individual capacity and in its capacity as Owner Trustee for the Trust that
all obligations of the Trust to the Owner Trustee individually or as Owner
Trustee for the Trust shall be recourse to the Owner Trust Estate only and
specifically shall not be recourse to the assets of any Certificateholder.

                                 ARTICLE VIII.

                         Termination of Trust Agreement

                  SECTION 8.1. Termination of Trust Agreement.

                         (a) This Agreement shall terminate and the Trust shall
        wind up and dissolve and be of no further force or effect upon the
        latest of (i) the maturity or other liquidation of the last Receivable
        and the subsequent distribution of amounts in respect of such
        Receivables as provided in the Basic Documents, (ii) the payment to each
        Certificateholder of all amounts required to be paid to it pursuant to
        this Agreement and the Sale and Servicing Agreement and the payment to
        the Note Insurer of all amounts payable or reimbursable to it pursuant
        to the Sale and Servicing Agreement, (iii) the

                                       29

        expiration of the Policy in accordance with its terms; or (iv) payment
        to the Note Insurer in full of all Reimbursement Obligations; provided,
        however, that the rights to indemnification under Section 7.2 and the
        rights under Section 7.1 shall survive the termination of the Trust. The
        Servicer shall promptly notify the Owner Trustee and the Note Insurer of
        any prospective termination pursuant to this Section. The bankruptcy,
        liquidation, dissolution, death or incapacity of a Certificateholder,
        shall not (x) operate to terminate this Agreement or the Trust, nor (y)
        entitle such Certificateholder's legal representatives or heirs to claim
        an accounting or to take any action or proceeding in any court for a
        partition or winding up of all or any part of the Trust or Owner Trust
        Estate nor (z) otherwise affect the rights, obligations and liabilities
        of the parties hereto.

                         (b) Neither the Transferor nor any Certificateholder
        shall be entitled to revoke or terminate the Trust.

                         (c) Notice of any termination of the Trust, specifying
        the Payment Date upon which each Certificateholder shall surrender its
        Certificate to the Trust Collateral Agent for payment of the final
        distribution and cancellation, shall be given by the Owner Trustee by
        letter to such Certificateholder mailed within five Business Days of
        receipt of notice of such termination from the Servicer given pursuant
        to Section 10.1(c) of the Sale and Servicing Agreement, stating (i) the
        Payment Date upon or with respect to which final payment of such
        Certificates shall be made upon presentation and surrender of such
        Certificates at the office of the Trust Collateral Agent therein
        designated, (ii) the amount of any such final payment, (iii) that the
        Record Date otherwise applicable to such Payment Date is not applicable,
        payments being made only upon presentation and surrender of such
        Certificates at the office of the Trust Collateral Agent therein
        specified and (iv) interest will cease to accrue on such Certificates.
        The Owner Trustee shall give such notice to the Trust Collateral Agent
        at the time such notice is given to the related Certificateholder. Upon
        presentation and surrender of such Certificates, the Trust Collateral
        Agent shall cause to be distributed to each Certificateholder amounts
        distributable on such Payment Date pursuant to Section 5.6 of the Sale
        and Servicing Agreement.

                  In the event that any Certificateholder shall not surrender
its Certificates for cancellation within six months after the date specified in
the above mentioned written notice, the Trust Collateral Agent shall give a
second written notice to such Certificateholder to surrender its Certificates
for cancellation and receive the final distribution with respect thereto. If
within one year after the second notice all the Certificates shall not have been
surrendered for cancellation, the Trust Collateral Agent may take appropriate
steps, or may appoint an agent to take appropriate steps, to contact the
Certificateholders concerning surrender of the Certificates, and the cost
thereof shall be paid out of the funds and other assets that shall remain
subject to this Agreement. Any funds remaining in the Trust after exhaustion of
such remedies shall be distributed, subject to applicable escheat laws, by the
Trust Collateral Agent to the Transferor.

                         (d) Upon the winding up of the Trust and its
        dissolution, the Owner Trustee shall cause the Certificate of Trust to
        be canceled by filing a certificate of cancellation with the Secretary
        of State in accordance with the provisions of Section 3810 of the
        Statutory Trust Act.

                                       30

                                  ARTICLE IX.

             Successor Owner Trustees and Additional Owner Trustees

                  SECTION 9.1. Eligibility Requirements for Owner Trustee. The
Owner Trustee shall at all times be a corporation or national banking
association (i) satisfying the provisions of Section 3807(a) of the Statutory
Trust Act; (ii) authorized to exercise corporate trust powers; (iii) having a
combined capital and surplus of at least $50,000,000 and subject to supervision
or examination by Federal or State authorities; and (iv) acceptable to the Note
Insurer in its sole discretion, so long as a Note Insurer Default shall not have
occurred and be continuing. If such entity shall publish reports of condition at
least annually, pursuant to law or to the requirements of the aforesaid
supervising or examining authority, then for the purpose of this Section, the
combined capital and surplus of such entity shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published. In case at any time the Owner Trustee shall cease to be eligible in
accordance with the provisions of this Section, the Owner Trustee shall resign
immediately in the manner and with the effect specified in Section 9.2.

                  SECTION 9.2. Resignation or Removal of Owner Trustee. The
Owner Trustee may at any time resign and be discharged from the trusts hereby
created by giving sixty days' written notice thereof to the Transferor, the
Certificateholders, the Note Insurer and the Servicer. Upon receiving such
notice of resignation, the Class R Certificateholder shall, with the prior
written consent of the Note Insurer, promptly appoint a successor Owner Trustee
by written instrument, in duplicate, one copy of which instrument shall be
delivered to the resigning Owner Trustee and one copy to the successor Owner
Trustee, provided that the Class R Certificateholder shall have received written
confirmation from each of the Rating Agencies that the proposed appointment will
not result in an increased capital charge to the Note Insurer by either of the
Rating Agencies. If no successor Owner Trustee shall have been so appointed and
have accepted appointment within thirty (30) days after the giving of such
notice of resignation, the resigning Owner Trustee or the Note Insurer may
petition any court of competent jurisdiction for the appointment of a successor
Owner Trustee.

                  If at any time the Owner Trustee shall cease to be eligible in
accordance with the provisions of Section 9.1 and shall fail to resign after
written request therefor by the Class R Certificateholder, or if at any time the
Owner Trustee shall be legally unable to act, or shall be adjudged bankrupt or
insolvent, or a receiver of the Owner Trustee or of its property shall be
appointed, or any public officer shall take charge or control of the Owner
Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then the Class R Certificateholder with the consent
of the Note Insurer (so long as a Note Insurer Default shall not have occurred
and be continuing) may remove the Owner Trustee. If the Class R
Certificateholder shall remove the Owner Trustee under the authority of the
immediately preceding sentence, the Class R Certificateholder shall, with the
prior written consent of the Note Insurer, promptly appoint a successor Owner
Trustee by written instrument, in duplicate, one copy of which instrument shall
be delivered to the outgoing Owner Trustee so removed, one copy to the Note
Insurer and one copy to the successor Owner Trustee and payment of all fees owed
to the outgoing Owner Trustee.

                                       31

                  Any resignation or removal of the Owner Trustee and
appointment of a successor Owner Trustee pursuant to any of the provisions of
this Section shall not become effective until acceptance of appointment by the
successor Owner Trustee pursuant to Section 9.3 and payment of all fees and
expenses owed to the outgoing Owner Trustee. The Class R Certificateholder shall
provide notice of such resignation or removal of the Owner Trustee to the Class
C Certificateholder and each of the Rating Agencies.

                  SECTION 9.3. Successor Owner Trustee. Any successor Owner
Trustee appointed pursuant to Section 9.2 shall execute, acknowledge and deliver
to the Transferor, the Certificateholders, the Servicer, the Note Insurer and to
its predecessor Owner Trustee an instrument accepting such appointment under
this Agreement, and thereupon the resignation or removal of the predecessor
Owner Trustee shall become effective and such successor Owner Trustee, without
any further act, deed or conveyance, shall become fully vested with all the
rights, powers, duties and obligations of its predecessor under this Agreement,
with like effect as if originally named as Owner Trustee. The predecessor Owner
Trustee shall upon payment of its fees and expenses deliver to the successor
Owner Trustee all documents and statements and monies held by it under this
Agreement; and the Transferor, the Certificateholders and the predecessor Owner
Trustee shall execute and deliver such instruments and do such other things as
may reasonably be required for fully and certainly vesting and confirming in the
successor Owner Trustee all such rights, powers, duties and obligations.

                  No successor Owner Trustee shall accept appointment as
provided in this Section unless at the time of such acceptance such successor
Owner Trustee shall be eligible pursuant to Section 9.1.

                  Upon acceptance of appointment by a successor Owner Trustee
pursuant to this Section, (i) the Servicer shall mail notice of the successor of
such Owner Trustee to the Certificateholders, the Indenture Trustee, the
Noteholders and the Rating Agencies and (ii) the successor Owner Trustee shall
file an amendment to the Certificate of Trust with the secretary of State
identifying its name and principal place of business in the State of Delaware.
If the Servicer shall fail to mail such notice within ten (10) days after
acceptance of appointment by the successor Owner Trustee, the successor Owner
Trustee shall cause such notice to be mailed at the expense of the Servicer.

                  SECTION 9.4. Merger or Consolidation of Owner Trustee. Any
corporation into which the Owner Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Owner Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Owner Trustee, shall be the successor of the Owner Trustee
hereunder, provided such corporation shall be eligible pursuant to Section 9.1,
without the execution or filing of any instrument or any further act on the part
of any of the parties hereto, anything herein to the contrary notwithstanding;
provided further that the Owner Trustee (i) shall mail notice of such merger or
consolidation to the Rating Agencies and (ii) shall file an amendment to the
Certificate of Trust as required under Section 9.3, above.

                  SECTION 9.5. Appointment of Co-Indenture Trustee or Separate
Indenture Trustee. Notwithstanding any other provisions of this Agreement, at
any time, for the purpose of

                                       32

meeting any legal requirements of any jurisdiction in which any part of the
Owner Trust Estate or any Financed Vehicle may at the time be located, the
Servicer and the Owner Trustee acting jointly shall have the power and shall
execute and deliver all instruments to appoint one or more Persons approved by
the Owner Trustee and the Note Insurer to act as co-trustee, jointly with the
Owner Trustee, or separate trustee or separate trustees, of all or any part of
the Owner Trust Estate, and to vest in such Person, in such capacity, such title
to the Trust, or any part thereof, and, subject to the other provisions of this
Section, such powers, duties, obligations, rights and trusts as the Servicer and
the Owner Trustee may consider necessary or desirable. If the Servicer shall not
have joined in such appointment within 15 days after the receipt by it of a
request so to do, the Owner Trustee subject, unless a Note Insurer Default shall
have occurred and be continuing, to the approval of the Note Insurer (which
approval shall not be unreasonably withheld) shall have the power to make such
appointment. No co-trustee or separate trustee under this Agreement shall be
required to meet the terms of eligibility as a successor trustee pursuant to
Section 9.1 and no notice of the appointment of any co-trustee or separate
trustee shall be required pursuant to Section 9.3.

                  Each separate trustee and co-trustee shall, to the extent
permitted by law, be appointed and act subject to the following provisions and
conditions:

                         (i) all rights, powers, duties and obligations
        conferred or imposed upon the Owner Trustee shall be conferred upon and
        exercised or performed by the Owner Trustee and such separate trustee or
        co-trustee jointly (it being understood that such separate trustee or
        co-trustee is not authorized to act separately without the Owner Trustee
        joining in such act), except to the extent that under any law of any
        jurisdiction in which any particular act or acts are to be performed,
        the Owner Trustee shall be incompetent or unqualified to perform such
        act or acts, in which event such rights, powers, duties and obligations
        (including the holding of title to the Trust or any portion thereof in
        any such jurisdiction) shall be exercised and performed singly by such
        separate trustee or co-trustee, but solely at the direction of the Owner
        Trustee;

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

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

                  Any notice, request or other writing given to the Owner
Trustee shall be deemed to have been given to each of the then separate trustees
and co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Agreement and
the conditions of this Article. Each separate trustee and co-trustee, upon its
acceptance of the trusts conferred, shall be vested with the estates or property
specified in its instrument of appointment, either jointly with the Owner
Trustee or separately, as may be provided therein, subject to all the provisions
of this Agreement, specifically including every provision of this Agreement
relating to the conduct of, affecting the liability of, or affording protection
to, the Owner Trustee. Each such instrument shall be filed with the Owner
Trustee and a copy thereof given to the Servicer and the Note Insurer.

                                       33

                  Any separate trustee or co-trustee may at any time appoint the
Owner Trustee, its agent or attorney-in-fact with full power and authority, to
the extent not prohibited by law, to do any lawful act under or in respect of
this Agreement on its behalf and in its name. If any separate trustee or
co-trustee shall die, become incapable of acting, resign or be removed, all of
its estates, properties, rights, remedies and trusts shall vest in and be
exercised by the Owner Trustee, to the extent permitted by law, without the
appointment of a new or successor trustee.

                                   ARTICLE X.

                                  Miscellaneous

                  SECTION 10.1. Supplements and Amendments.

                         (a) This Agreement may be amended by the Transferor and
        the Owner Trustee, with the prior written consent of the Note Insurer
        (so long as a Note Insurer Default shall not have occurred and be
        continuing) and with prior written notice to the Rating Agencies,
        without the consent of any of the Noteholders or the Certificateholders
        (so long as such Certificates are outstanding), (i) to cure any
        ambiguity or defect or (ii) to correct, supplement or modify any
        provisions in this Agreement; provided, however, that such action shall
        not, as evidenced by an Opinion of Counsel which may be based upon a
        certificate of the Servicer, delivered to the Owner Trustee, the Rating
        Agencies and the Note Insurer, adversely affect in any material respect
        the interests of any Noteholder or Certificateholder.

                         (b) This Agreement may also be amended from time to
        time, with the prior written consent of the Note Insurer (so long as a
        Note Insurer Default shall not have occurred and be continuing) by the
        Transferor and the Owner Trustee, with prior written notice to the
        Rating Agencies, to the extent such amendment materially and adversely
        affects the interests of the Class A Noteholders, with the consent of
        the Class A Noteholders evidencing not less than 50% of the outstanding
        Class A Note Balance to the extent such amendment materially and
        adversely affects the interests of the Class C Certificateholder, with
        the consent of the Class C Certificateholder and, to the extent such
        amendment materially and adversely affects the interests of the Class R
        Certificateholder, the consent of the Class R Certificateholder (which
        consent of the Class R Certificateholder given pursuant to this Section
        or pursuant to any other provision of this Agreement shall be conclusive
        and binding on such Class R Certificateholder and any future Class R
        Certificateholder) 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 or
        any Certificateholder; provided, however, that, subject to the express
        rights of the Note Insurer under the Basic Documents, no such amendment
        shall (a) increase or reduce in any manner the amount of, or accelerate
        or delay the timing of, collections of payments on Receivables or
        distributions that shall be required to be made for the benefit of the
        Noteholders or any Certificateholder or (b) reduce the aforesaid
        percentage of the Class A Note Balance or the Certificateholders
        required to consent to any such amendment, without the consent of the
        Noteholders of all the outstanding Class A Notes, the Class C
        Certificateholder or the Class R Certificateholder, as the case may be.

                                       34

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

                  It shall not be necessary for the consent of
Certificateholders, the Noteholders or the Indenture Trustee 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 any other consents of any
Certificateholder provided for in this Agreement or in any other Basic Document)
and of evidencing the authorization of the execution thereof by any
Certificateholder shall be subject to such reasonable requirements as the Owner
Trustee may prescribe. Promptly after the execution of any amendment to the
Certificate of Trust, the Owner Trustee shall cause the filing of such amendment
with the Secretary of State.

                  Prior to the execution of any amendment to this Agreement or
the Certificate of Trust, the Owner Trustee and the Note Insurer shall be
entitled to receive and rely upon an Opinion of Counsel stating that the
execution of such amendment is authorized or permitted by this Agreement and
that all conditions precedent to the execution and delivery of such amendment
have been satisfied. The Owner Trustee may, but shall not be obligated to, enter
into any such amendment which affects the Owner Trustee's own rights, duties or
immunities under this Agreement or otherwise.

                  SECTION 10.2. No Legal Title to Owner Trust Estate in
Certificateholders. No Certificateholder shall have legal title to any part of
the Owner Trust Estate. Each Certificateholder shall be entitled to receive
distributions in accordance with this Agreement and the Sale and Servicing
Agreement. No transfer, by operation of law or otherwise, of any right, title or
interest of any Certificateholder to and in its ownership interest in the Owner
Trust Estate shall operate to terminate this Agreement or the trusts hereunder
or entitle any transferee to an accounting or to the transfer to it of legal
title to any part of the Owner Trust Estate.

                  SECTION 10.3. Limitations on Rights of Others. The provisions
of this Agreement are solely for the benefit of the Owner Trustee, the
Transferor, the Certificateholders, the Servicer and, to the extent expressly
provided herein, the Note Insurer, the Indenture Trustee and the Noteholders,
and nothing in this Agreement, whether express or implied, shall be construed to
give to any other Person any legal or equitable right, remedy or claim in the
Owner Trust Estate or under or in respect of this Agreement or any covenants,
conditions or provisions contained herein.

                  SECTION 10.4. Notices.

                         (a) Unless otherwise expressly specified or permitted
        by the terms hereof, all notices shall be in writing and shall be deemed
        given upon receipt personally delivered, sent by facsimile transmission
        (with appropriate confirmation) delivered by overnight courier or mailed
        first class mail or certified mail, in each case return receipt
        requested, and shall be deemed to have been duly given upon receipt:

                                       35

                (i)     if to the Owner Trustee, addressed to:

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

                (ii)    if to the Transferor, addressed to:

                        Long Beach Acceptance Receivables Corp.
                        One Mack Centre Drive
                        Paramus, New Jersey 07652
                        Attention: General Counsel
                        (Telecopy Number: (201) 262-6868)

                (iii)   if to the Note Insurer, addressed to

                        Financial Security Assurance Inc.
                        350 Park Avenue, New York, NY 10022
                        Attention:  Transaction Oversight
                        Re: Long Beach Acceptance Auto Receivables Trust 2004-C
                        Telex No.: (212) 688-3101
                        Confirmation: (212) 826-0100
                        Telecopy Nos.: (212) 339-3518, (212) 339-3529

                        (in each case in which notice or other communication to
                        Financial Security refers to an Event of Default, a
                        claim on the Policy or with respect to which failure on
                        the part of Financial Security to respond shall be
                        deemed to constitute consent or acceptance, then a copy
                        of such notice or other communication should also be
                        sent to the attention of the General Counsel and the
                        Head-Financial Guaranty Group "URGENT MATERIAL
                        ENCLOSED").

                (iv)    in the case of the Rating Agencies, addressed to:

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

                        and

                                       36

                         Standard & Poor's Ratings Services
                         55 Water Street, 40th Floor
                         New York, New York 10041
                         Attention:  Asset Backed Surveillance Department

                         (b) Any notice required or permitted to be given to a
        Class R Certificateholder shall be given by first-class mail, postage
        prepaid, at the address of the Class R Certificateholder in the register
        maintained by the Owner Trustee. Any notice so mailed within the time
        prescribed in this Agreement shall be conclusively presumed to have been
        duly given, whether or not the Class R Certificateholder receives such
        notice.

                  SECTION 10.5. Severability. Any provision of this Agreement
that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

                  SECTION 10.6. Separate Counterparts. This Agreement may be
executed by the parties hereto in separate counterparts, each of which when so
executed and delivered shall be an original, but all such counterparts shall
together constitute but one and the same instrument.

                  SECTION 10.7. Assignments. This Agreement shall inure to the
benefit of and be binding upon the parties hereto and their respective
successors and permitted assigns.

                  SECTION 10.8. No Recourse.

                         (a) The Class R Certificateholder by accepting a Class
        R Certificate acknowledges that such Class R Certificate represents a
        beneficial interest in the Trust only and does not represent interests
        in or obligations of the Transferor, the Servicer, the Owner Trustee,
        the Indenture Trustee, the Note Insurer or any Affiliate thereof and no
        recourse may be had against such parties or their assets, except as may
        be expressly set forth or contemplated in this Agreement, the Class R
        Certificate or the Basic Documents.

                         (b) The Class C Certificateholder by accepting a Class
        C Certificate acknowledges that such Class C Certificate represents a
        right to receive interest and cashflow in accordance with the terms of
        the Sale and Servicing Agreement and a beneficial interest in the Trust
        and does not represent interests in or obligations of the Transferor,
        the Servicer, the Owner Trustee, the Indenture Trustee, the Note Insurer
        or any Affiliate thereof and no recourse may be had against such parties
        or their assets, except as may be expressly set forth or contemplated in
        this Agreement, the Class C Certificate or the Basic Documents.

                  SECTION 10.9. Headings. The headings of the various Articles
and Sections herein are for convenience of reference only and shall not define
or limit any of the terms or provisions hereof.

                                       37

                  SECTION 10.10. GOVERNING LAW. THIS AGREEMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH, AND THIS AGREEMENT AND ALL MATTERS ARISING OUT OF
OR RELATING IN ANY WAY TO THIS AGREEMENT SHALL BE GOVERNED BY, THE LAWS OF THE
STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS.

                  SECTION 10.11. Servicer. The Servicer is authorized to
prepare, or cause to be prepared, execute and deliver on behalf of the Trust all
such documents, reports, filings, instruments, certificates and opinions as it
shall be the duty of the Trust or Owner Trustee to prepare, file or deliver
pursuant to the Basic Documents. Upon written request, the Owner Trustee shall
execute and deliver to the Servicer a limited power of attorney appointing the
Servicer the Trust's agent and attorney-in-fact to prepare, or cause to be
prepared, execute and deliver all such documents, reports, filings, instruments,
certificates and opinions.

                  SECTION 10.12. Limitation on Liability. With respect to the
Note Insurer, the Owner Trustee undertakes to perform or observe only such of
the covenants and obligations of the Owner Trustee as are expressly set forth in
this Agreement, and no implied covenants or obligations with respect to the Note
Insurer shall be read into this Agreement or the other Basic Documents against
the Owner Trustee. The Owner Trustee shall not be deemed to owe any fiduciary
duty to the Note Insurer, and shall not be liable to any such person for the
failure of the Trust to perform its obligations to such persons other than as a
result of the gross negligence or willful misconduct of the Owner Trustee in the
performance of its express obligations under this Agreement.

                  SECTION 10.13. No Petition. The Owner Trustee (not in its
individual capacity but solely as Owner Trustee), by entering into this
Agreement, each Certificateholder, by accepting its Certificate, and the
Indenture Trustee and each Noteholder by accepting the benefits of this
Agreement, hereby covenant and agree that they will not at any time institute
against the Transferor, or join in any institution against the Transferor of,
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings, or other proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the
Certificates, the Notes, this Agreement or any other Basic Documents.

                  SECTION 10.14. Bankruptcy Matters. To the fullest extent
permitted by law, no Certificateholder nor any party to this Agreement shall
take any action to cause the Trust to dissolve in whole or in part or file a
voluntary petition or otherwise initiate proceedings to have the Trust
adjudicated bankrupt or insolvent, or consent to the institution of bankruptcy
or insolvency proceedings against the Trust as debtor under any applicable
federal or state law relating to bankruptcy, insolvency or other relief for
debts with respect to the Trust; or seek or consent to the appointment of any
trustee, receiver, conservator, assignee, sequestrator, custodian, liquidator
(or other similar official) of the Trust or of all or any substantial part of
the properties and assets of the Trust, or cause the Trust to make any general
assignment for the benefit or creditors of the Trust or take any action in
furtherance of any of the above actions unless each Certificateholder and the
Indenture Trustee shall have provided their written consent.

                  SECTION 10.15. Effect of Policy Expiration Date.
Notwithstanding anything to the contrary set forth herein, all references to any
right of the Note Insurer to direct, appoint,

                                       38

consent to, accept, approve of, take or omit to take any action under this
Agreement or any other Basic Document shall be inapplicable at all times after
the Policy Expiration Date, and if such reference provides for another party or
parties to take or omit to take any such action following a Note Insurer
Default, such party or parties shall also be entitled to take or omit to take
such action following the Policy Expiration Date and (ii) if such reference does
not provide for another party or parties to take or omit to take any such action
following a Note Insurer Default, then the Indenture Trustee acting at the
direction of the Majorityholders shall have the right to take or omit to take
any such action following the Policy Expiration Date. In addition, any other
provision of this Agreement or any other Basic Document which is operative based
in whole or in part on whether a Note Insurer Default has or has not occurred
shall, at all times on or after the Policy Expiration Date, be deemed to refer
to whether or not the Policy Expiration Date has occurred.

                                       39

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

                                     WILMINGTON TRUST COMPANY, as Owner Trustee

                                     By: /s/ Patricia A. Evans
                                        ---------------------------------------
                                        Name:  Patricia A. Evans
                                        Title: Assistant Vice President

                                     LONG BEACH ACCEPTANCE RECEIVABLES CORP.

                                      By: /s/ Mike Pankey
                                         --------------------------------------
                                         Name:  Mike Pankey
                                         Title: Chief Financial Officer

                     [Signature Page to the Trust Agreement]

                                                                       EXHIBIT A

                         [FORM OF CERTIFICATE OF TRUST]

                              CERTIFICATE OF TRUST
                                       OF
               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2004-C

                  This Certificate of Trust of LONG BEACH ACCEPTANCE AUTO
RECEIVABLES TRUST 2004-C (the "Trust") is being duly executed and filed by the
undersigned, as trustee, to form a statutory trust under the Statutory Trust Act
(12 Del. C. ss.3801 et seq.) (the "Act").

                  1. Name. The name of the statutory trust formed hereby is LONG
BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2004-C.

                  2. Owner Trustee. The name and business address of the trustee
of the Trust in the State of Delaware is Wilmington Trust Company, Rodney Square
North, 1100 North Market Street, Wilmington, Delaware 19890-0001, Attention:
Corporate Trust Administration.

                  3. Effective Date. This Certificate of Trust will be effective
upon filing.

                  IN WITNESS WHEREOF, the undersigned, being the sole trustee of
the Trust, has executed this Certificate of Trust in accordance with Section
3811(a) of the Act.

                                 WILMINGTON TRUST COMPANY, as Owner Trustee

                                 By:
                                      --------------------------------------
                                      Name:
                                      Title:

                                   EXHIBIT B-1

                          [FORM OF CLASS R CERTIFICATE]

THIS CLASS R CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE APPLICABLE SECURITIES LAWS OF ANY
STATE. ACCORDINGLY, ANY TRANSFER OF THIS CLASS R CERTIFICATE IS SUBJECT TO
CERTAIN RESTRICTIONS SET FORTH IN SECTION 3.7 OF THE TRUST AGREEMENT. BY ITS
ACCEPTANCE OF THIS CLASS R CERTIFICATE THE HOLDER OF THIS CLASS R CERTIFICATE IS
DEEMED TO REPRESENT TO THE TRANSFEROR AND THE OWNER TRUSTEE (I) THAT IT IS AN
INSTITUTIONAL INVESTOR THAT IS AN "ACCREDITED INVESTOR" AS DEFINED IN RULE
501(A)(1), (2), (3) OR (7) OF REGULATION D PROMULGATED UNDER THE SECURITIES ACT
(AN "INSTITUTIONAL ACCREDITED INVESTOR") AND THAT IT IS ACQUIRING THIS CLASS R
CERTIFICATE FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A
FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE INSTITUTIONAL ACCREDITED
INVESTORS UNLESS THE HOLDER IS A BANK ACTING IN ITS FIDUCIARY CAPACITY) FOR
INVESTMENT AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, THE
PUBLIC DISTRIBUTION HEREOF OR (II) THAT IT IS A "QUALIFIED INSTITUTIONAL BUYER"
AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT AND IS ACQUIRING THIS CLASS R
CERTIFICATE FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A
FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL
BUYERS).

NO SALE, PLEDGE OR OTHER TRANSFER OF THIS CLASS R CERTIFICATE MAY BE MADE BY ANY
PERSON UNLESS EITHER (I) SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE TO THE
TRANSFEROR, (II) SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE TO AN INSTITUTIONAL
ACCREDITED INVESTOR THAT EXECUTES A CERTIFICATE, SUBSTANTIALLY IN THE FORM
SPECIFIED IN THE TRUST AGREEMENT, TO THE EFFECT THAT IT IS AN INSTITUTIONAL
ACCREDITED INVESTOR ACTING FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF
OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE
INSTITUTIONAL ACCREDITED INVESTORS UNLESS THE HOLDER IS A BANK ACTING IN ITS
FIDUCIARY CAPACITY), (III) SO LONG AS THIS CLASS R CERTIFICATE IS ELIGIBLE FOR
RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, SUCH SALE, PLEDGE OR
OTHER TRANSFER IS MADE TO A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES AFTER
DUE INQUIRY IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A),
ACTING FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY
OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL BUYERS) TO
WHOM NOTICE IS GIVEN THAT THE SALE, PLEDGE OR TRANSFER IS BEING MADE IN RELIANCE
ON RULE 144A, OR (IV) SUCH SALE, PLEDGE OR OTHER TRANSFER IS OTHERWISE MADE IN A
TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, IN
WHICH CASE (A) THE OWNER TRUSTEE SHALL REQUIRE THAT BOTH THE PROSPECTIVE
TRANSFEROR AND THE PROSPECTIVE TRANSFEREE CERTIFY TO THE OWNER

TRUSTEE AND THE TRANSFEROR IN WRITING THE FACTS SURROUNDING SUCH TRANSFER, WHICH
CERTIFICATION SHALL BE IN FORM AND SUBSTANCE SATISFACTORY TO THE OWNER TRUSTEE
AND THE TRANSFEROR, AND (B) THE OWNER TRUSTEE MAY REQUIRE A WRITTEN OPINION OF
COUNSEL (WHICH SHALL NOT BE AT THE EXPENSE OF THE TRUST, THE TRANSFEROR OR THE
OWNER TRUSTEE) SATISFACTORY TO THE TRANSFEROR AND THE OWNER TRUSTEE TO THE
EFFECT THAT SUCH TRANSFER WILL NOT VIOLATE THE SECURITIES ACT. NO SALE, PLEDGE
OR OTHER TRANSFER MAY BE MADE TO ANY ONE PERSON FOR CLASS R CERTIFICATES WITH A
FACE AMOUNT OF LESS THAN $100,000 AND, IN THE CASE OF ANY PERSON ACTING ON
BEHALF OF ONE OR MORE THIRD PARTIES (OTHER THAN A BANK (AS DEFINED IN SECTION
3(A)(2) OF THE SECURITIES ACT) ACTING IN ITS FIDUCIARY CAPACITY), FOR CLASS R
CERTIFICATES WITH A FACE AMOUNT OF LESS THAN $100,000 FOR EACH SUCH THIRD PARTY.

NO TRANSFER OF THIS CLASS R CERTIFICATE SHALL BE PERMITTED TO BE MADE TO ANY
PERSON UNLESS THE OWNER TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEREE
TO THE EFFECT THAT SUCH TRANSFEREE IS NOT (A) AN EMPLOYEE BENEFIT PLAN (AS
DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
AS AMENDED ("ERISA")) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA OR
(B) A PLAN (AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE CODE
(EACH, A "BENEFIT PLAN"), AND IS NOT ACTING ON BEHALF OF OR INVESTING THE ASSETS
OF A BENEFIT PLAN. EACH TRANSFEREE OF A BENEFICIAL OWNERSHIP INTEREST IN THIS
CLASS R CERTIFICATE SHALL BE DEEMED TO REPRESENT THAT IT IS NOT A BENEFIT PLAN
AND IS NOT ACTING ON BEHALF OF OR INVESTING THE ASSETS OF A BENEFIT PLAN.

NO TRANSFER OR SALE OF THIS CLASS R CERTIFICATE SHALL BE PERMITTED TO BE MADE IF
THE TRANSFER OR SALE INCREASES THE NUMBER OF CERTIFICATEHOLDERS TO MORE THAN
NINETY-NINE (99).

THE HOLDER OF THIS CLASS R CERTIFICATE REPRESENTS, BY VIRTUE OF ITS ACCEPTANCE
HEREOF, (I) THAT IT IS ACQUIRING THIS CLASS R CERTIFICATE FOR ITS OWN BEHALF AND
IS NOT ACTING AS AGENT OR CUSTODIAN FOR ANY OTHER PERSON OR ENTITY IN CONNECTION
WITH SUCH ACQUISITION, (II) IF THE HOLDER IS A PARTNERSHIP, GRANTOR TRUST OR S
CORPORATION FOR FEDERAL INCOME TAX PURPOSES (A "FLOW-THROUGH ENTITY"), ANY CLASS
R CERTIFICATE OWNED BY SUCH FLOW-THROUGH ENTITY WILL REPRESENT LESS THAN 50% OF
THE VALUE OF ALL THE ASSETS OWNED BY SUCH FLOW-THROUGH ENTITY AND NO SPECIAL
ALLOCATION OF INCOME, GAIN, LOSS, DEDUCTION OR CREDIT FROM SUCH CLASS R
CERTIFICATE WILL BE MADE AMONG THE BENEFICIAL OWNERS OF SUCH FLOW-THROUGH
ENTITY, AND (III) THE HOLDER IS A UNITED STATES PERSON WITHIN THE MEANING OF THE
CODE.

                                      B-1-2

TRANSFER OF THIS CLASS R CERTIFICATE IS SUBJECT TO CERTAIN RESTRICTIONS SET
FORTH IN SECTION 3.7 OF THE AGREEMENT.

                                      B-1-3

               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2004-C

                   UNDER AMENDED AND RESTATED TRUST AGREEMENT

                          DATED AS OF DECEMBER 1, 2004

Certificate Number:

                  Wilmington Trust Company, a Delaware banking corporation, not
in its individual capacity but solely as trustee (the "Owner Trustee") under an
Amended and Restated Trust Agreement, dated as of December 1, 2004, between Long
Beach Acceptance Receivables Corp., a Delaware corporation (the "Transferor")
and the Owner Trustee (the "Trust Agreement"), hereby certifies that LONG BEACH
ACCEPTANCE RECEIVABLES CORP. is the Holder of this Class R Certificate
representing the entire beneficial interest in the Long Beach Acceptance Auto
Receivables Trust (the "Trust") created by the Trust Agreement. This Class R
Certificate is issued pursuant to and is entitled to the benefits of the Trust
Agreement, and the Class R Certificateholder by acceptance hereof agrees to be
bound by the terms of the Trust Agreement. Reference is hereby made to the Trust
Agreement for a statement of the rights and obligations of the Class R
Certificateholder hereof. The Owner Trustee may treat the person shown on the
register maintained by the Owner Trustee pursuant to the Trust Agreement as the
absolute Class R Certificateholder hereof for all purposes.

                  Capitalized terms used herein without definition have the
meanings ascribed to them in or by reference to the Trust Agreement.

                  The Class R Certificateholder hereof, by its acceptance of
this Class R Certificate, warrants and represents to, and agrees with, the Owner
Trustee that it shall not transfer this Class R Certificate except in accordance
with the Trust Agreement.

                  The Class R Certificateholder, by acceptance of its Class R
Certificate, specifically acknowledges that it has no right to or interest in
any monies at any time held pursuant to the Spread Account Agreement prior to
the release of such monies pursuant to Section 5.6 of the Sale and Servicing
Agreement, such monies being held in trust for the benefit of the Class A
Noteholders and the Note Insurer. Notwithstanding the foregoing, in the event
that it is ever determined that provisions of the Sale and Servicing Agreement
and the Spread Account Agreement shall be considered to constitute a security
agreement and the Transferor and the Class R Certificateholder hereby grant to
the Collateral Agent for the benefit of the Class A Noteholders and the Note
Insurer a first priority perfected security interest in such amounts, to be
applied as set forth in Section 3.03 of the Spread Account Agreement. In
addition the Class R Certificateholder, by acceptance of its Class R
Certificate, hereby appoints the Transferor as its agent to pledge a first
priority perfected security interest in the Spread Account, and any amounts held
therein from time to time to the Collateral Agent pursuant to the Spread Account
Agreement and agrees to execute and deliver such instruments of conveyance,
assignment, grant and confirmation, as well as financing statements, in each
case as the Note Insurer shall consider reasonably necessary in order to perfect
the Collateral Agent's Security Interest in the Collateral (as such terms are
defined in the Spread Account Agreement).

                                      B-1-4

                  This Class R Certificate and the Trust Agreement shall in all
respects be governed by, and construed in accordance with, the laws of the State
of Delaware, without regard to conflict-of-law principles.

                                      B-1-5

                  IN WITNESS WHEREOF, the Trust, pursuant to the Trust
Agreement, has caused this Class R Certificate to be issued as of the date
hereof.

                             LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2004-C

                             By:  Wilmington Trust Company,
                                  not in its individual capacity
                                  but solely as Owner Trustee

                             By:
                                  -------------------------------------------
                                  Name:
                                  Title:

Dated:  December 9, 2004

                  This is one of the Class R Certificates referred to in the
within-mentioned Agreement.

                             WILMINGTON TRUST COMPANY,
                             not in its individual capacity
                             but solely as Owner Trustee

                             By:  Wilmington Trust Company,
                                  Authenticating Agent

                             By:
                                  ---------------------------------------------
                                  Name:
                                  Title:

Dated:  December 9, 2004

                                      B-1-6

                                   ASSIGNMENT

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

PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE

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

(Please print or typewrite name and address, including postal zip code, of
assignee)

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

the within Class R Certificate, and all rights thereunder, hereby irrevocably
constituting and appointing

_____________________________________ Attorney to transfer said Class R
Certificate on the books of the Certificate Registrar, with full power of
substitution in the premises.

Dated:

                                                                           *
                                  -----------------------------------------

                                                                           *
                                  -----------------------------------------

* NOTICE: The signature to this assignment must correspond with the name as it
appears upon the face of the within Class R Certificate in every particular,
without alteration, enlargement or any change whatever.

                                      B-1-7

                                                                     EXHIBIT B-2

                          [FORM OF CLASS C CERTIFICATE]

THIS CLASS C CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE APPLICABLE SECURITIES LAWS OF ANY
STATE. ACCORDINGLY, ANY TRANSFER OF THIS CLASS C CERTIFICATE IS SUBJECT TO
CERTAIN RESTRICTIONS SET FORTH IN SECTION 3.7 OF THE TRUST AGREEMENT. BY ITS
ACCEPTANCE OF THIS CLASS C CERTIFICATE THE HOLDER OF THIS CLASS C CERTIFICATE IS
DEEMED TO REPRESENT TO THE TRANSFEROR AND THE OWNER TRUSTEE (I) THAT IT IS AN
INSTITUTIONAL INVESTOR THAT IS AN "ACCREDITED INVESTOR" AS DEFINED IN RULE
501(A)(1), (2), (3) OR (7) OF REGULATION D PROMULGATED UNDER THE SECURITIES ACT
(AN "INSTITUTIONAL ACCREDITED INVESTOR") AND THAT IT IS ACQUIRING THIS CLASS C
CERTIFICATE FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A
FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE INSTITUTIONAL ACCREDITED
INVESTORS UNLESS THE HOLDER IS A BANK ACTING IN ITS FIDUCIARY CAPACITY) FOR
INVESTMENT AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, THE
PUBLIC DISTRIBUTION HEREOF OR (II) THAT IT IS A "QUALIFIED INSTITUTIONAL BUYER"
AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT AND IS ACQUIRING THIS CLASS C
CERTIFICATE FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A
FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL
BUYERS).

NO SALE, PLEDGE OR OTHER TRANSFER OF THIS CLASS C CERTIFICATE MAY BE MADE BY ANY
PERSON UNLESS EITHER (I) SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE TO THE
TRANSFEROR, (II) SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE TO AN INSTITUTIONAL
ACCREDITED INVESTOR THAT EXECUTES A CERTIFICATE, SUBSTANTIALLY IN THE FORM
SPECIFIED IN THE TRUST AGREEMENT, TO THE EFFECT THAT IT IS AN INSTITUTIONAL
ACCREDITED INVESTOR ACTING FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF
OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE
INSTITUTIONAL ACCREDITED INVESTORS UNLESS THE HOLDER IS A BANK ACTING IN ITS
FIDUCIARY CAPACITY), (III) SO LONG AS THIS CLASS C CERTIFICATE IS ELIGIBLE FOR
RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, SUCH SALE, PLEDGE OR
OTHER TRANSFER IS MADE TO A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES AFTER
DUE INQUIRY IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A),
ACTING FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY
OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL BUYERS) TO
WHOM NOTICE IS GIVEN THAT THE SALE,

PLEDGE OR TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (IV) SUCH SALE,
PLEDGE OR OTHER TRANSFER IS OTHERWISE MADE IN A TRANSACTION EXEMPT FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, IN WHICH CASE (A) THE OWNER
TRUSTEE SHALL REQUIRE THAT BOTH THE PROSPECTIVE TRANSFEROR AND THE PROSPECTIVE
TRANSFEREE CERTIFY TO THE OWNER TRUSTEE AND THE TRANSFEROR IN WRITING THE FACTS
SURROUNDING SUCH TRANSFER, WHICH CERTIFICATION SHALL BE IN FORM AND SUBSTANCE
SATISFACTORY TO THE OWNER TRUSTEE AND THE TRANSFEROR, AND (B) THE OWNER TRUSTEE
MAY REQUIRE A WRITTEN OPINION OF COUNSEL (WHICH SHALL NOT BE AT THE EXPENSE OF
THE TRUST, THE TRANSFEROR OR THE OWNER TRUSTEE) SATISFACTORY TO THE TRANSFEROR
AND THE OWNER TRUSTEE TO THE EFFECT THAT SUCH TRANSFER WILL NOT VIOLATE THE
SECURITIES ACT. NO SALE, PLEDGE OR OTHER TRANSFER MAY BE MADE TO ANY ONE PERSON
FOR CLASS C CERTIFICATES WITH A FACE AMOUNT OF LESS THAN $100,000 AND, IN THE
CASE OF ANY PERSON ACTING ON BEHALF OF ONE OR MORE THIRD PARTIES (OTHER THAN A
BANK (AS DEFINED IN SECTION 3(A)(2) OF THE SECURITIES ACT) ACTING IN ITS
FIDUCIARY CAPACITY), FOR CLASS C CERTIFICATES WITH A FACE AMOUNT OF LESS THAN
$100,000 FOR EACH SUCH THIRD PARTY.

NO TRANSFER OF THIS CLASS C CERTIFICATE SHALL BE PERMITTED TO BE MADE TO ANY
PERSON UNLESS THE OWNER TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEREE
TO THE EFFECT THAT SUCH TRANSFEREE IS NOT (A) AN EMPLOYEE BENEFIT PLAN (AS
DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
AS AMENDED ("ERISA")) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA OR
(B) A PLAN (AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE CODE
(EACH, A "BENEFIT PLAN"), AND IS NOT ACTING ON BEHALF OF OR INVESTING THE ASSETS
OF A BENEFIT PLAN. EACH TRANSFEREE OF A BENEFICIAL OWNERSHIP INTEREST IN THIS
CLASS C CERTIFICATE SHALL BE DEEMED TO REPRESENT THAT IT IS NOT A BENEFIT PLAN
AND IS NOT ACTING ON BEHALF OF OR INVESTING THE ASSETS OF A BENEFIT PLAN.

NO TRANSFER OR SALE OF THIS CLASS C CERTIFICATE SHALL BE PERMITTED TO BE MADE IF
THE TRANSFER OR SALE INCREASES THE NUMBER OF CERTIFICATEHOLDERS TO MORE THAN
NINETY-NINE (99).

THE HOLDER OF THIS CLASS C CERTIFICATE REPRESENTS, BY VIRTUE OF ITS ACCEPTANCE
HEREOF, (I) THAT IT IS ACQUIRING THIS CLASS C CERTIFICATE FOR ITS OWN BEHALF AND
IS NOT ACTING AS AGENT OR CUSTODIAN FOR ANY OTHER PERSON OR ENTITY IN CONNECTION
WITH SUCH ACQUISITION, (II) IF THE HOLDER IS A PARTNERSHIP, GRANTOR TRUST OR S
CORPORATION FOR FEDERAL INCOME TAX PURPOSES (A "FLOW-THROUGH ENTITY"), ANY CLASS
C CERTIFICATE OWNED BY SUCH FLOW-THROUGH ENTITY WILL REPRESENT LESS THAN 50% OF
THE VALUE OF ALL THE ASSETS OWNED BY SUCH FLOW-THROUGH ENTITY AND NO SPECIAL
ALLOCATION OF INCOME, GAIN, LOSS, DEDUCTION OR CREDIT FROM SUCH CLASS C
CERTIFICATE WILL BE MADE AMONG THE

                                      B-2-2

BENEFICIAL OWNERS OF SUCH FLOW-THROUGH ENTITY, AND (III) THE HOLDER IS A UNITED
STATES PERSON WITHIN THE MEANING OF THE CODE.

TRANSFER OF THIS CLASS C CERTIFICATE IS SUBJECT TO CERTAIN RESTRICTIONS SET
FORTH IN SECTION 3.7 OF THE AGREEMENT.

                                      B-2-3

               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2004-C

                   UNDER AMENDED AND RESTATED TRUST AGREEMENT

                          DATED AS OF DECEMBER 1, 2004

   Certificate No. 1       Initial Principal Balance:    Certificate Rate: 6.00%
                                 $7,954,545.45
  First Payment Date:
   January 18, 2005

         Wilmington Trust Company, a Delaware banking corporation, not in its
individual capacity but solely as trustee (the "Owner Trustee") under an Amended
and Restated Trust Agreement, dated as of December 1, 2004, between Long Beach
Acceptance Receivables Corp., a Delaware corporation (the "Transferor") and the
Owner Trustee (the "Trust Agreement"), hereby certifies that GREENWICH CAPITAL
MARKETS, INC. is the Holder of this Class C Certificate representing the right
to receive interest and principal distributions in accordance with the terms of
the Sale and Servicing Agreement. This 6.00% Class C Certificate is issued
pursuant to and is entitled to the benefits of the Trust Agreement, and the
Class C Certificateholder by acceptance hereof agrees to be bound by the terms
of the Trust Agreement. Reference is hereby made to the Trust Agreement for a
statement of the rights and obligations of the Class C Certificateholder hereof.
The Owner Trustee may treat the person shown on the register maintained by the
Owner Trustee pursuant to the Trust Agreement as the absolute Class C
Certificateholder hereof for all purposes.

         Capitalized terms used herein without definition have the meanings
ascribed to them in or by reference to the Trust Agreement.

         The Class C Certificateholder hereof, by its acceptance of this Class C
Certificate, warrants and represents to, and agrees with, the Owner Trustee that
it shall not transfer this Class C Certificate except in accordance with the
Trust Agreement.

         The Class C Certificateholder, by acceptance of its Class C
Certificate, specifically acknowledges that it has no right to or interest in
any monies at any time held pursuant to the Sale and Servicing Agreement or the
Spread Account Agreement prior to the release of such monies pursuant to
Sections 5.6(c) or 5.6(d) of the Sale and Servicing Agreement, such monies being
held in trust for the benefit of the Class A Noteholders and the Note Insurer.
Notwithstanding the foregoing, in the event that it is ever determined that
provisions of the Sale and Servicing Agreement and the Spread Account Agreement
shall be considered to constitute a security agreement and the Transferor and
the Class C Certificateholder hereby grant to the Collateral Agent for the
benefit of the Class A Noteholders and the Note Insurer a first priority
perfected security interest in such amounts, to be applied as set forth in
Section 3.03 of the Spread Account Agreement and Section 5.6 of the Sale and
Servicing Agreement.

                                     B-2-4

         This Class C Certificate and the Trust Agreement shall in all respects
be governed by, and construed in accordance with, the laws of the State of
Delaware, without regard to conflict-of-law principles.

                                     B-2-5

         IN WITNESS WHEREOF, the Trust, pursuant to the Trust Agreement, has
caused this Class C Certificate to be issued as of the date hereof.

                                           LONG BEACH ACCEPTANCE AUTO
                                           RECEIVABLES TRUST 2004-C

                                           By: Wilmington Trust Company,
                                               not in its individual capacity
                                               but solely as Owner Trustee

                                           By:
                                               ---------------------------------
                                               Name:
                                               Title:

Dated: December 9, 2004

         This is one of the Class C Certificates referred to in the
within-mentioned Agreement.

                                           WILMINGTON TRUST COMPANY,
                                           not in its individual capacity
                                           but solely as Owner Trustee

                                           By: Wilmington Trust Company,
                                               Authenticating Agent

                                           By:
                                               ---------------------------------
                                               Name:
                                               Title:

Dated: December 9, 2004

                                     B-2-6

                                   ASSIGNMENT

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

PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE

--------------------------------------------------------------------------------
(Please print or typewrite name and address, including postal zip code, of
assignee)

--------------------------------------------------------------------------------
the within Class C Certificate, and all rights thereunder, hereby irrevocably
constituting and appointing

_____________________________________ Attorney to transfer said Class C
Certificate on the books of the Certificate Registrar, with full power of
substitution in the premises.

Dated:

                                                                               *
                                        ---------------------------------------

                                                                               *
                                        ---------------------------------------

* NOTICE: The signature to this assignment must correspond with the name as it
appears upon the face of the within Class C Certificate in every particular,
without alteration, enlargement or any change whatever.

                                     B-2-7

                                                                       EXHIBIT C

                    [FORM OF "QUALIFIED INSTITUTIONAL BUYER"
                            TRANSFEREE'S CERTIFICATE]

                                     [Date]

Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, DE  19890-0001
Attn:  Corporate Trust Administration

Long Beach Acceptance Receivables Corp.
One Mack Centre Drive
Paramus, NJ  07652
Attn:  President

         Re: Long Beach Acceptance Auto Receivables Trust 2004-C

Ladies and Gentlemen:

         In connection with the proposed purchase by the buyer listed below (the
"Buyer") of the Class [C][R] Certificates (as defined below) issued pursuant to
the Amended and Restated Trust Agreement, dated as of December 1, 2004 (the
"Trust Agreement"), between Long Beach Acceptance Receivables Corp., as
Transferor (the "Transferor") and Wilmington Trust Company, as trustee (the
"Owner Trustee"), relating to Long Beach Acceptance Auto Receivables Trust
2004-C (the " Class [C][R] Certificates"), the Buyer advises you as follows: (i)
the Buyer is a "qualified institutional buyer" as that term is defined in Rule
144A under the Securities Act of 1933, as amended (the "1933 Act") and is
acquiring beneficial ownership of the Class [C][R] Certificates for its own
account or for the account of not more than _ persons, each of which is a
"qualified institutional buyer"; and (ii) the Buyer satisfies the requirements
of paragraph (a)(2)(ii) of Rule 3a-7 under the Investment Company Act of 1940,
as amended (the "1940 Act"). In addition to the foregoing, you may rely on the
information provided in Annex 1 or 2, as applicable, attached hereto and
incorporated herein.

         The Buyer understands that the Class [C][R] Certificates have not been
registered under the 1933 Act or the securities laws of any state. The Buyer
acknowledges that it has independently conducted such investigation and
evaluation of the merits and the risks involved in an investment in the Class
[C][R] Certificates and has received such information (whether from the
Transferor, the Owner Trustee, the transferor from which it proposes to purchase
Class [C][R] Certificates, or from any other source) as the Buyer has deemed
necessary and advisable in order to make its investment decision. The Buyer has
had any questions arising from such investigation and evaluation answered by the
Transferor to the satisfaction of the Buyer. The Buyer is a sophisticated
institutional investor, having such knowledge and experience in financial and
business matters generally, and with respect to asset-backed securities and
investments in "non-prime" automobile loans specifically, that it is capable of
independently

evaluating the merits and risks of investment in the Class [C][R] Certificates.
In the normal course of its business, the Buyer invests in or purchases
securities similar to the Class [C][R] Certificates. The Buyer is aware that it
may be required to bear the economic risk of an investment in the Class [C][R]
Certificates for an indefinite period of time, and it is able to bear such risk
for an indefinite period.

                                            Very truly yours,

                                            [BUYER]

                                            By:
                                               ---------------------------------
                                            Name:
                                            Title:

                                            Taxpayer ID:
                                                        ------------------------

                                            Name in which Class [C][R]
                                            Certificate is to be Registered:

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

                                            Address for Notices:

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

                                            Payment Instructions:

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

                                      C-2

                                                            ANNEX 1 TO EXHIBIT C

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

             [For Buyers Other Than Registered Investment Companies]

         The undersigned hereby certifies as follows to the parties listed in
the "Qualified Institutional Buyer" Transferee's Certificate to which this
certification relates with respect to the Rule 144A Securities described
therein:

         1. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.

         2. In connection with purchases by the Buyer, the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933 ("Rule 144A") because (i) the Buyer owned and/or invested on a
discretionary basis $_________________(1) in securities (except for the excluded
securities referred to below) as of the end of the Buyer's most recent fiscal
year (such amount being calculated in accordance with Rule 144A) and (ii) the
Buyer satisfies the criteria in the category marked below.

[ ] Corporation, etc. The Buyer is a corporation (other than a bank, savings and
loan association or similar institution), Massachusetts or similar business
trust, partnership, or charitable organization described in Section 501(c)(3) of
the Internal Revenue Code of 1986, as amended.

[ ] Bank. The Buyer (a) is a national bank or banking institution organized
under the laws of any State, territory or the District of Columbia, the business
of which is substantially confined to banking and is supervised by the State or
territorial banking commission or similar official or is a foreign bank or
equivalent institution, and (b) has an audited net worth of at least $25,000,000
as demonstrated in its latest annual financial statements, a copy of which is
attached hereto.

[ ] Savings and Loan. The Buyer (a) is a savings and loan association, building
and loan association, cooperative bank, homestead association or similar
institution, which is supervised and examined by a State or Federal authority
having supervision over any such institutions or is a foreign savings and loan
association or equivalent institution and (b) has an audited net worth of at
least $25,000,000 as demonstrated in its latest annual financial statements, a
copy of which is attached hereto.

[ ] Broker-dealer. The Buyer is a dealer registered pursuant to Section 15 of
the Securities Exchange Act of 1934.

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

(1) Buyer must own and/or invest on a discretionary basis at least $100,000,000
in securities unless Buyer is a dealer, and, in that case, Buyer must own and/or
invest on a discretionary basis at least $10,000,000 in securities.

                                      C-3

[ ] Insurance Company. The Buyer is an insurance company whose primary and
predominant business activity is the writing of insurance or the reinsuring of
risks underwritten by insurance companies and which is subject to supervision by
the insurance commissioner or a similar official or agency of a State, territory
or the District of Columbia.

[ ] State or Local Plan. The Buyer is a plan established and maintained by a
State, its political subdivisions, or any agency or instrumentality of the State
or its political subdivisions, for the benefit of its employees.

[ ] ERISA Plan. The Buyer is an employee benefit plan within the meaning of
Title I of the Employee Retirement Income Security Act of 1974.

[ ] Investment Advisor. The Buyer is an investment advisor registered under the
Investment Advisers Act of 1940.

[ ] Small Business Investment Company. Buyer is a small business investment
company licensed by the U.S. Small Business Administration under Section 301(c)
or (d) of the Small Business Investment Act of 1958.

[ ] Business Development Company. Buyer is a business development company as
defined in Section 202(a)(22) of the Investment Advisors Act of 1940.

[ ] Trust Fund. The Buyer is a trust fund whose trustee is a bank or trust
company and whose participants are exclusively State or Local Plans or ERISA
Plans as defined above, and no participant of the Buyer is an individual
retirement account or an H.R. 10 (Keogh) plan.

         3. The term "securities" as used herein does not include (i) securities
of issuers that are affiliated with the Buyer, (ii) securities that are part of
an unsold allotment to or subscription by the Buyer, if the Buyer is a dealer,
(iii) bank deposit notes and certificates of deposit, (iv) loan participations,
(v) repurchase agreements, (vi) securities owned but subject to a repurchase
agreement and (vii) currency, interest rate and commodity swaps.

         4. For purposes of determining the aggregate amount of securities owned
and/or invested on a discretionary basis by the Buyer, the Buyer used the cost
of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph, except (i) where the Buyer reports its
securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934.

         5. The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Class [C][R]
Certificates are

                                      C-4

relying and will continue to rely on the statements made herein because one or
more sales to the Buyer may be in reliance on Rule 144A.

         6. Until the date of purchase of the Rule 144A Securities, the Buyer
will notify each of the parties to which this certification is made of any
changes in the information and conclusions herein. Until such notice is given,
the Buyer's purchase of Rule 144A Securities will constitute a reaffirmation of
this certification as of the date of such purchase. In addition, if the Buyer is
a Bank or Savings and Loan as provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

                                            ------------------------------------
                                            Print Name of Buyer

                                            By:
                                               ---------------------------------
                                            Name:
                                            Title:

                                            Date:

                                      C-5

                                                            ANNEX 2 TO EXHIBIT C

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

              [For Buyers that are Registered Investment Companies]

         The undersigned hereby certifies as follows to the parties listed in
the "Qualified Institutional Buyer" Transferee's Certificate to which this
certification relates with respect to the Rule 144A Securities described
therein:

         1. As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933 ("Rule 144A") because Buyer is part of a Family of
Investment Companies (as defined below), is such an officer of the Adviser.

         2. In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in SEC Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, and (ii)
as marked below, the Buyer alone, or the Buyer's Family of Investment Companies,
owned at least $100,000,000 in securities (other than the excluded securities
referred to below) as of the end of the Buyer's most recent fiscal year. For
purposes of determining the amount of securities owned by the Buyer or the
Buyer's Family of Investment Companies, the cost of such securities was used,
except (i) where the Buyer or the Buyer's Family of Investment Companies reports
its securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market.

         [ ] The Buyer owned $__________ in securities (other than the excluded
         securities referred to below) as of the end of the Buyer's most recent
         fiscal year (such amount being calculated in accordance with Rule
         144A).

         [ ] The Buyer is part of a Family of Investment Companies which owned
         in the aggregate $__________ in securities (other than the excluded
         securities referred to below) as of the end of the Buyer's most recent
         fiscal year (such amount being calculated in accordance with Rule
         144A).

         3. The term "Family of Investment Companies" as used herein means two
or more registered investment companies (or series thereof) that have the same
investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).

         4. The term "securities" as used herein does not include (i) securities
of issuers that are affiliated with the Buyer or are part of the Buyer's Family
of Investment Companies, (ii) bank deposit notes and certificates of deposit,
(iii) loan participations, (iv) repurchase agreements, (v) securities owned but
subject to a repurchase agreement and (vi) currency, interest rate and commodity
swaps.

                                      C-6

         5. The Buyer is familiar with Rule 144A and understands that the
parties listed in the Qualified Institutional Buyer Transferee's Certificate to
which this certification relates are relying and will continue to rely on the
statements made herein because one or more sales to the Buyer will be in
reliance on Rule 144A. In addition, the Buyer will only purchase for the Buyer's
own account.

         6. Until the date of purchase of the Rule 144A Securities, the
undersigned will notify each of the parties to which this certification is made
of any changes in the information and conclusions herein. Until such notice is
given, the Buyer's purchase of Rule 144A Securities will constitute a
reaffirmation of this certification by the undersigned as of the date of such
purchase.

                                       -----------------------------------------
                                       Print Name of Buyer or Adviser

                                       By:
                                          --------------------------------------
                                       Name:
                                       Title:

                                       IF AN ADVISER:

                                       -----------------------------------------
                                       Print Name of Buyer

                                       Date:

                                      C-7

                                                                       EXHIBIT D

            [FORM OF "ACCREDITED INVESTOR" TRANSFEREE'S CERTIFICATE]

                                     [Date]

Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890-0001
Attn:  Corporate Trust Administration

Long Beach Acceptance Receivables Corp.
One Mack Centre Drive
Paramus, NJ 07652
Attn:  President

         Re: Long Beach Acceptance Auto Receivables Trust 2004-C

Dear Sirs:

         In connection with the proposed purchase by the buyer listed below (the
"Buyer") of Class [C][R] Certificates (as defined below) issued pursuant to the
Amended and Restated Trust Agreement, dated as of December 1, 2004 (the "Trust
Agreement"), between Long Beach Acceptance Receivables Corp., as Transferor (the
"Transferor"), and Wilmington Trust Company, as trustee (the "Owner Trustee"),
relating to Long Beach Acceptance Auto Receivables Trust 2004-C (the "Class
[C][R] Certificates"), the Buyer confirms that:

         1. The Buyer understands that the Class [C][R] Certificates have not
been registered under the Securities Act of 1933, as amended (the "1933 Act"),
and may not be sold except as permitted in the following sentence. The Buyer
agrees, on its own behalf and on behalf of any accounts for which it is acting
as hereinafter stated, that such Class [C][R] Certificates may be resold,
pledged or transferred only: (i) so long as such Class [C][R] Certificates are
eligible for resale pursuant to Rule 144A under the 1933 Act ("Rule 144A"), to a
person who the Buyer reasonably believes is a "qualified institutional buyer" as
defined in Rule 144A (a "QIB") that purchases for its own account or for the
account of a QIB, to whom notice is given that the resale, pledge or transfer is
being made in reliance on Rule 144A, (ii) pursuant to an exemption from
registration under the 1933 Act provided by Rule 144 (if applicable) under the
1933 Act or (iii) to an institution that is an "Accredited Investor" as defined
in Rule 501(a)(1), (2), (3) or (7) under the 1933 Act (an "Accredited Investor")
that is acquiring the Class [C][R] Certificates for investment purposes and not
for distribution, in each case in accordance with any applicable securities laws
of any state of the United States, and the Buyer will notify any purchaser of
the Class [C][R] Certificates from it of the above resale restrictions. The
Buyer further understands that in connection with any transfer of the Class
[C][R] Certificates to an Accredited Investor by it that the Transferor or Owner
Trustee may request, and if so requested the Buyer will furnish, such
certificates and other information as they may reasonably require to confirm any
such transfer with the foregoing restrictions.

         2. The Buyer is an institutional investor which is an Accredited
Investor or, if the Class [C][R] Certificates are to be purchased for one or
more institutional accounts ("investor accounts") for which it is acting as
fiduciary or agent (except if it is a bank as defined in Section 3(a)(2) of the
1933 Act, or a savings and loan association or other institution as described in
Section 3(a)(5)(A) of the 1933 Act, whether acting in its individual or in a
fiduciary capacity), each such investor account is an institutional investor and
an Accredited Investor on a like basis. In the normal course of its business,
the Buyer invests in or purchases securities similar to the Class [C][R]
Certificates.

         3. The Buyer satisfies the requirements of paragraph (a)(2)(i) of Rule
3a-7 of the Investment Company Act of 1940, as amended.

         4. The Buyer acknowledges that it has independently conducted such
investigation and evaluation of the merits and the risks involved in an
investment in the Class [C][R] Certificates and has received such information
(whether from the Transferor, the Servicer, the transferor from which it
proposes to purchase Class [C][R] Certificates, or from any other source) as the
Buyer has deemed necessary and advisable in order to make its investment
decision. The Buyer has had any questions arising from such investigation and
evaluation answered by the Transferor to the satisfaction of the Buyer. The
Buyer is a sophisticated institutional investor, having such knowledge and
experience in financial and business matters generally, and with respect to
asset-backed securities and investments in "non-prime" automobile loans
specifically, that it is capable of independently evaluating the merits and
risks of investment in the Class [C][R] Certificates. In the normal course of
its business, the Buyer invests in or purchases securities similar to the Class
[C][R] Certificates. The Buyer is aware that it (or any investor account) may be
required to bear the economic risk of an investment in the Class [C][R]
Certificates for an indefinite period of time, and it (or such account) is able
to bear such risk for an indefinite period.

                                            Very truly yours,

                                            [BUYER]

                                            By:
                                               ---------------------------------
                                            Name:
                                            Title:

                                      D-2

                                                                       EXHIBIT E

                       [FORM OF TRANSFEROR'S CERTIFICATE]

                                     [Date]

Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890-0001
Attn:  Corporate Trust Administration

         Re: Long Beach Acceptance Auto Receivables Trust 2004-C

         Ladies and Gentlemen:

         In connection with the disposition by the transferor listed below (the
"Transferor") of Class [C][R] Certificates (as defined below) issued pursuant to
the Amended and Restated Trust Agreement, dated as of December 1, 2004 (the
"Trust Agreement") between Long Beach Acceptance Receivables Corp., as
Transferor (the "Transferor"), and Wilmington Trust Company, as trustee (the
"Owner Trustee"), relating to Long Beach Acceptance Auto Receivables Trust
2004-C (the "Class [C][R] Certificates"), the Transferor certifies that:

         (a) the Transferor understands that the Class [C][R] Certificates have
not been registered under the Securities Act of 1933, as amended (the "1933
Act"), and are being disposed of by the Transferor in a transaction that is
exempt from the registration requirements of the 1933 Act; and

         (b) the Transferor has not offered or sold any Class [C][R]
Certificates to, or solicited offers to buy any Class [C][R] Certificates from,
any person, or otherwise approached or negotiated with any person with respect
thereto, in a manner that would be deemed, or taken any other action which would
result in, a violation of Section 5 of the 1933 Act.

                                        Very truly yours,

                                        [Name of Transferor]

                                        By:
                                           -------------------------------------
                                        Name:
                                        Title:

                                                                       EXHIBIT F

                           [FORM OF ERISA CERTIFICATE]

                                     [Date]

Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890-0001
Attn:  Corporate Trust Administration

Long Beach Acceptance Receivables Corp.
One Mack Centre Drive
Paramus, NJ 07652
Attn:  President

         Re: Long Beach Acceptance Auto Receivables Trust 2004-C

Ladies and Gentlemen:

[NAME OF OFFICER] hereby certifies that:

         1. That he [she] is [Title of Officer] ____________________ of [Name of
Transferee] ___________________________________________ (the "Transferee"), a
[savings institution] [corporation] duly organized and existing under the laws
of [the State of ________] [the United States], on behalf of which he [she]
makes this affidavit.

         2. The Transferee (1) is not, and on _______________ [insert date of
transfer of Class [C][R] Certificate to Transferee] will not be, and on such
date will not be acting on behalf of or investing the assets of (a) an "employee
benefit plan" (as defined in Section 3(3) of the Employee Retirement Income
Security Act of 1974, as amended ("ERISA")) that is subject to the provisions of
Title I of ERISA or (b) a "plan" (as defined in Section 4975(e)(1) of the
Internal Revenue Code of 1986, as amended (the "Code")) that is subject to
Section 4975 of the Code (each, a "Benefit Plan").

         3. In connection with the proposed purchase by the Transferee of the
Class [C][R] Certificate issued pursuant to the Trust Agreement (the
"Agreement") between Long Beach Acceptance Receivables Corp., as Transferor (the
"Transferor"), and Wilmington Trust Company, as trustee (the "Owner Trustee"),
dated as of December 1, 2004, the Transferee hereby acknowledges that under the
terms of the Agreement no transfer of any Class [C][R] Certificate (as defined
in the Agreement) shall be permitted to be made to any person unless the Owner
Trustee has received a certificate from such transferee to the effect that such
transferee is not a Benefit Plan and is not acting on behalf of or investing the
assets of a Benefit Plan.

         [4. The Class [C][R] Certificates shall be registered in the name of
_______________________ as nominee for the Transferee.]

         IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
[Title of Officer] _______________, this__ day of ____________.

                                           [Name of Transferee]

                                           By:
                                              ----------------------------------
                                              Name:
                                              Title:

The undersigned hereby acknowledges
that it is holding and will hold the Class [C][R]
Certificates at the exclusive direction of and
as nominee of the Investor named above.

[Name of Nominee]

By:
   --------------------------------
   Name:
   Title:

                                      F-2

                                                                       EXHIBIT G

                    [FORM OF FLOW THROUGH ENTITY CERTIFICATE]

                                     [Date]

Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890-0001
Attn:  Corporate Trust Administration

Long Beach Acceptance Receivables Corp.
One Mack Centre Drive
Paramus, NJ 07652
Attn:  President

         Re: Long Beach Acceptance Auto Receivables Trust 2004-C

Ladies and Gentlemen:

[NAME OF OFFICER] hereby certifies that:

         1. That he [she] is [Title of Officer] ____________ of [Name of
Transferee] _______________________________ (the "Transferee"), a [savings
institution] [corporation] duly organized and existing under the laws of [the
State of ____________] [the United States], on behalf of which he [she] makes
this affidavit.

         2. The Transferee (a) is acquiring the Class [C][R] Certificate (as
defined below) for its own behalf and is not acting as agent or custodian for
any other person or entity in connection with such acquisition, (b) if the
Transferee is a partnership, grantor trust or S corporation for federal income
tax purposes (a "Flow Through Entity"), any Class [C][R] Certificate owned by
such Flow Through Entity will represent less than 50% of the value of all the
assets owned by such Flow Through Entity and no special allocation of income,
gain, loss, deduction or credit from such Class [C][R] Certificate will be made
among the beneficial owners of such Flow Through Entity, and (c) the Transferee
is a United States person within the meaning of the Internal Revenue Code of
1986, as amended.

         3. The Transferee hereby acknowledges that under the terms of the
Amended and Restated Trust Agreement (the "Agreement") between Long Beach
Acceptance Receivables Corp., as Transferor (the "Transferor"), and Wilmington
Trust Company, as trustee (the "Owner Trustee"), dated as of December 1, 2004 no
transfer of any Class [C][R] Certificate (as defined in the Agreement) shall be
permitted to be made to any person unless the Owner Trustee has received a
certificate from such transferee to the effect that such transferee (a) is
acquiring the Class [C][R] Certificate for its own behalf

and is not acting as agent or custodian for any other person or entity in
connection with such acquisition, (b) if the transferee is a partnership,
grantor trust or S corporation for federal income tax purposes (a "Flow Through
Entity"), any Class [C][R] Certificate owned by such Flow Through Entity will
represent less than 50% of the value of all the assets owned by such Flow
Through Entity and no special allocation of income, gain, loss, deduction or
credit from such Class [C][R] Certificate will be made among the beneficial
owners of such Flow Through Entity, and (c) the transferee is a United States
person within the meaning of the Internal Revenue Code of 1986 as amended.

         [4. The Class [C][R] Certificates shall be registered in the name of as
nominee for the Transferee.]

         IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
[Title of Officer) _____________________________, this ___ day of -----------.

                                         [NAME OF TRANSFEREE]

                                         By:
                                            --------------------------------
                                         Name:
                                         Title:

The undersigned hereby acknowledges
that it is holding and will hold the Class [C][R]
Certificates at the exclusive direction of and
as nominee of the Investor named above.

[NAME OF NOMINEE]

By:
   ---------------------------------
Name:
Title:

                                      G-2

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