Document:

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                                                                  EXECUTION COPY

                                                                     EXHIBIT 4.2

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                                 TRUST AGREEMENT

                                      Among

                       TRIAD FINANCIAL SPECIAL PURPOSE LLC
                                   Depositor,

                           TRIAD FINANCIAL CORPORATION
                                  Administrator
                                       and

                            WILMINGTON TRUST COMPANY
                                  Owner Trustee

                            Dated as of May 26, 2005

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                                TABLE OF CONTENTS

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

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

ARTICLE II.
ORGANIZATION.........................................................................................    4

         Section 2.1.     Name.......................................................................    4
         Section 2.2.     Office.....................................................................    4
         Section 2.3.     Purposes and Powers........................................................    4
         Section 2.4.     Appointment of Owner Trustee...............................................    5
         Section 2.5.     Initial Capital Contribution of Trust Estate...............................    5
         Section 2.6.     Declaration of Trust.......................................................    5
         Section 2.7.     Liability of the Certificateholders........................................    5
         Section 2.8.     Title to Trust Property....................................................    5
         Section 2.9.     Situs of Trust.............................................................    5
         Section 2.10.    Representations and Warranties of the Depositor............................    6
         Section 2.11.    Representations and Warranties of the Administrator........................    7
         Section 2.12.    Covenants of the Certificateholders........................................    8
         Section 2.13.    Federal Income Tax Treatment of the Trust..................................    8

ARTICLE III.
CERTIFICATES AND TRANSFERS OF INTERESTS..............................................................    9

         Section 3.1.     Ownership..................................................................    9
         Section 3.2.     The Certificates...........................................................    9
         Section 3.3.     Authentication of Certificates.............................................    9
         Section 3.4.     Registration of Transfer and Exchange of Certificates......................   10
         Section 3.5.     Mutilated, Destroyed, Lost or Stolen Certificates..........................   11
         Section 3.6.     Persons Deemed Certificateholders..........................................   12
         Section 3.7.     Maintenance of Office or Agency............................................   12
         Section 3.8.     ERISA Restrictions.........................................................   12
         Section 3.9.     Access to List of Certificateholders' Names and Addresses..................   12

ARTICLE IV.
VOTING RIGHTS AND OTHER ACTIONS......................................................................   13

         Section 4.1.     Majority Certificateholders................................................   13
         Section 4.2.     Prior Notice to Certificateholders with Respect to Certain Matters.........   13
         Section 4.3.     Action by Certificateholders with Respect to Certain Matters...............   13
         Section 4.4.     Restrictions on Certificateholders' Power..................................   14
         Section 4.5.     Rights of Security Insurer.................................................   14
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<S>                                                                                                     <C>
ARTICLE V.
AUTHORITY AND DUTIES OF OWNER TRUSTEE................................................................   14

         Section 5.1.     General Authority..........................................................   14
         Section 5.2.     General Duties.............................................................   15
         Section 5.3.     Action upon Instruction....................................................   15
         Section 5.4.     No Duties Except as Specified in this Agreement or in Instructions.........   16
         Section 5.5.     No Action Except under Specified Documents or Instructions.................   16
         Section 5.6.     Restrictions...............................................................   16

ARTICLE VI.
CONCERNING THE OWNER TRUSTEE.........................................................................   16

         Section 6.1.     Acceptance of Trusts and Duties............................................   16
         Section 6.2.     Furnishing of Documents....................................................   18
         Section 6.3.     Representations and Warranties.............................................   18
         Section 6.4.     Reliance; Advice of Counsel................................................   19
         Section 6.5.     Not Acting in Individual Capacity..........................................   19
         Section 6.6.     Owner Trustee Not Liable for Certificates or Receivables...................   19
         Section 6.7.     Owner Trustee May Own Notes................................................   20
         Section 6.8.     Payments from Owner Trust Estate...........................................   20
         Section 6.9.     Doing Business in Other Jurisdictions......................................   20

ARTICLE VII.
COMPENSATION OF OWNER TRUSTEE........................................................................   20

         Section 7.1.     Owner Trustee's Fees and Expenses..........................................   20
         Section 7.2.     Indemnification............................................................   20
         Section 7.3.     Payments to the Owner Trustee..............................................   21
         Section 7.4.     Non-recourse Obligations...................................................   21

ARTICLE VIII.
TERMINATION OF TRUST AGREEMENT.......................................................................   21

         Section 8.1.     Termination of Trust Agreement.............................................   21

ARTICLE IX.
SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES...............................................   22

         Section 9.1.     Eligibility Requirements for Owner Trustee.................................   22
         Section 9.2.     Resignation or Removal of Owner Trustee....................................   23
         Section 9.3.     Successor Owner Trustee....................................................   23
         Section 9.4.     Merger or Consolidation of Owner Trustee...................................   24
         Section 9.5.     Appointment of Co-Trustee or Separate Trustee..............................   24
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ARTICLE X.
MISCELLANEOUS........................................................................................   25

         Section 10.1.    Supplements and Amendments.................................................   25
         Section 10.2.    No Legal Title to Owner Trust Estate in Certificateholders.................   26
         Section 10.3.    Limitations on Rights of Others............................................   27
         Section 10.4.    Notices....................................................................   27
         Section 10.5.    Severability...............................................................   28
         Section 10.6.    Separate Counterparts......................................................   28
         Section 10.7.    Assignments................................................................   28
         Section 10.8.    No Recourse................................................................   28
         Section 10.9.    No Petition................................................................   28
         Section 10.10.   Headings...................................................................   28
         Section 10.11.   GOVERNING LAW..............................................................   28
         Section 10.12.   Administrator..............................................................   29
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                                    EXHIBITS

EXHIBIT A    -   FORM OF CERTIFICATE
EXHIBIT B    -   FORM OF CERTIFICATE OF TRUST
EXHIBIT C    -   FORM OF QUALIFIED INSTITUTIONAL BUYER TRANSFEREE'S CERTIFICATE

                                      iii
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      This TRUST AGREEMENT dated as of May 26, 2005 among TRIAD FINANCIAL
SPECIAL PURPOSE LLC, a Delaware limited liability company (the "Depositor"),
TRIAD FINANCIAL CORPORATION, as sponsor of the Trust and Administrator (the
"Administrator"), and WILMINGTON TRUST COMPANY, a Delaware banking corporation,
as trustee and not in its individual capacity (the "Owner Trustee"), amends and
restates in its entirety that certain Trust Agreement dated as of April 15, 2005
between the Depositor and the Owner Trustee.

                                   ARTICLE I.
                                  DEFINITIONS

      Section 1.1. Capitalized Terms. For all purposes of this Agreement, the
following terms will have the meanings set forth below:

      "Administrator" means Triad, as the Administrator of the Trust.

      "Agreement" means this Trust Agreement, as the same may be amended and
supplemented from time to time.

      "Beneficial Interest" means an undivided fractional beneficial ownership
interest in the Trust. The amount of each Beneficial Interest shall be expressed
as a percentage, and the total of the Beneficial Interests shall be 100.0%.

      "Benefit Plan" has the meaning assigned to such term in Section 3.8.

      "Certificate" means a trust certificate evidencing the beneficial interest
of a Certificateholder in the Trust, substantially in the form of Exhibit A
attached hereto.

      "Certificateholder" or "Holder" means the Person in whose name a
Certificate is registered on the Certificate Register, initially Triad Financial
Residual Special Purpose LLC.

      "Certificate of Trust" means the Certificate of Trust in the form of
Exhibit B that has been filed for the Trust pursuant to Section 3810(a) of the
Statutory Trust Statute.

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

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

      "Corporate Trust Office" means, with respect to the Owner Trustee, the
principal corporate trust office of the Owner Trustee located at Rodney Square
North, 1100 North Market Street, Wilmington, Delaware 19890, or at such other
address as the Owner Trustee may designate by notice to the Certificateholders,
or the principal corporate trust office of any successor Owner Trustee (the
address of which such successor Owner Trustee will notify the
Certificateholders).

      "Depositor" means Triad Financial Special Purpose LLC, a Delaware limited
liability company.

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      "ERISA" has the meaning assigned to such term in Section 3.8.

      "Expenses" has the meaning assigned to such term in Section 7.2.

      "Indemnified Parties" has the meaning assigned to such term in Section
7.2.

      "Indenture" means the Indenture, dated as of May 26, 2005, between the
Trust and JPMorgan Chase Bank, N.A., as Indenture Trustee, as the same may be
amended and supplemented from time to time.

      "Instructing Party" has the meaning assigned to such term in Section 5.3

      "Majority Certificateholders" means Certificateholders holding at least a
majority of the Beneficial Interests.

      "Owner Trust Estate" means all right, title and interest of the Trust in
and to the property and rights assigned to the Trust pursuant to Section 2.1 of
the Sale and Servicing Agreement, all funds on deposit from time to time in the
Trust Accounts (including all Eligible Investments therein and all proceeds
therefrom) and all other property of the Trust from time to time, including any
rights of the Owner Trustee and the Trust under the Sale and Servicing
Agreement.

      "Owner Trustee" means Wilmington Trust Company, a Delaware banking
corporation, not in its individual capacity but solely as owner trustee under
this Agreement, and any successor Owner Trustee hereunder.

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

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

      "Residual Holder" means Triad Financial Residual Special Purpose LLC, a
Delaware limited liability company.

      "Responsible Officer" means, with respect to the Owner Trustee, any
officer within the Corporate Trust Office of the Owner Trustee with direct
responsibility for the administration of the Trust and also, with respect to a
particular matter, any other officer to whom such matter is referred because of
such officer's knowledge of and familiarity with the particular subject.

      "Sale and Servicing Agreement" means the Sale and Servicing Agreement
dated as of May 26, 2005, among the Trust, the Depositor, Triad and the
Indenture Trustee, as the same may be amended and supplemented from time to
time.

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

      "Security Insurer" means Ambac Assurance Corporation, or its successor in
interest.

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      "Statutory Trust Statute" means Chapter 38 of Title 12 of the Delaware
Code, 12 Del. Code Section 3801 et seq., as the same may be amended from time to
time.

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

      "Triad" means Triad Financial Corporation, a California corporation, or
its successor in interest.

      "Trust" means the trust established by this Agreement.

      Section 1.2. Other Definitional Provisions.

            (a) Capitalized terms used herein and not otherwise defined have the
meanings assigned to them in the Sale and Servicing Agreement or, if not defined
therein, in the Indenture.

            (b) All terms defined in this Agreement will 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, will 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 will
control.

            (d) The words "hereof," "herein," "hereunder" and words of similar
import when used in this Agreement will 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"
will 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.

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                                   ARTICLE II.
                                  ORGANIZATION

      Section 2.1. Name. There is hereby formed a trust to be known as "Triad
Automobile Receivables Trust 2005-A," in which name the Owner Trustee may
conduct the business of the Trust, make and execute contracts and other
instruments on behalf of the Trust and sue and be sued.

      Section 2.2. Office. The office of the Trust will be in care of the Owner
Trustee at the Corporate Trust Office or at such other address as the Owner
Trustee may designate by written notice to the Certificateholders.

      Section 2.3. Purposes and Powers. The purpose of the Trust is, and the
Trust will have the power and authority, to engage in the following activities:

            (a) to issue the Notes pursuant to the Indenture and the
Certificates pursuant to this Agreement, and to sell the Notes to the Depositor
and sell, transfer or exchange the Certificates;

            (b) to assign, grant, transfer, pledge, mortgage and convey the
Trust Estate to the Indenture Trustee pursuant to the Indenture for the benefit
of the Security Insurer and on behalf of the Noteholders and to hold, manage and
distribute to the Certificateholders pursuant to the terms of the Sale and
Servicing Agreement any portion of the Trust Estate released from the Lien of,
and remitted to the Trust pursuant to, the Indenture;

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

            (d) to enter into interest rate swaps and caps and other derivative
instruments in connection with the Notes;

            (e) to enter into interest rate swaps and caps and other derivative
instruments in connection with the Certificates;

            (f) 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

            (g) 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
will not engage in any activity other than in connection with the foregoing or
other than as required or authorized by the terms of the Basic Documents.

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      Section 2.4. Appointment of Owner Trustee. The Depositor 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 of Trust Estate. The Owner
Trustee hereby acknowledges prior receipt in trust from the Depositor of the sum
of $1,000 which contribution will constitute the initial Owner Trust Estate. The
Administrator will 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 in trust upon and subject to the conditions
set forth herein for the use and benefit of the Holders, 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 Statute and that this Agreement constitute the governing instrument of
such statutory trust. Effective as of the date hereof, the Owner Trustee will
have all rights, powers and duties set forth herein and to the extent not
inconsistent herewith, in the Statutory Trust Statute with respect to
accomplishing the purposes of the Trust. The Owner Trustee has filed the
Certificate of Trust with the Secretary of State.

      Section 2.7. Liability of the Certificateholders. Certificateholders and
holders of beneficial interests therein shall be entitled to the same limitation
of personal liability extended to stockholders of private corporations for
profit organized under the General Corporation Law of the State of Delaware.

      Section 2.8. Title to Trust Property.

            (a) Legal title to all the Owner Trust Estate will 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 will be deemed to be vested in the
Owner Trustee, a co-trustee and/or a separate trustee, as the case may be. If
any portion of the Owner Trust Estate is deemed vested in the Owner Trustee, a
co-trustee and/or separate trustee, the Owner Trustee, upon having actual
knowledge thereof, will immediately notify the Indenture Trustee, the Servicer
and the Administrator, and the Administrator will cause to be filed such UCC
financing statements and related filing documents or writings as are necessary
to maintain the Indenture Trustee's security interest in the Owner Trust Estate.

            (b) No Certificateholder will have legal title to any part of the
Trust Property. No transfer, by operation of law or otherwise, of any right,
title or interest by any Certificateholder of its ownership interest in the
Owner Trust Estate will 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 Trust Property.

      Section 2.9. Situs of Trust. The Trust will be located in the State of
Delaware. All bank accounts maintained by the Owner Trustee on behalf of the
Trust will be located in the State of Delaware or the State of New York.
Payments will be received by the Trust only in Delaware or

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New York and payments will be made by the Trust only from Delaware or New York.
The Trust will not have any employees in any state other than Delaware;
provided, however, that nothing herein will restrict or prohibit the Owner
Trustee, the Servicer or any agent of the Trust from having employees within or
without the State of Delaware. The only office of the Trust will be at the
Corporate Trust Office located in Delaware.

      Section 2.10. Representations and Warranties of the Depositor. The
Depositor makes the following representations and warranties on which the Owner
Trustee relies in accepting the Owner Trust Estate in trust and executing the
Certificates and upon which the Security Insurer relies in issuing the Note
Policy.

            (a) Organization and Good Standing. The Depositor is duly organized
and validly existing as a Delaware limited liability company 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 the Basic Documents.

            (b) Due Qualification. The Depositor is duly qualified to do
business as a foreign limited liability company 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 the Basic Documents requires such
qualification.

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

            (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 in connection with the
execution, delivery or performance of the Basic Documents, except for such as
have been obtained, effected or made.

            (e) No Violation. The consummation of the transactions contemplated
by this Agreement and the fulfillment of the terms hereof do not conflict with,
result in any breach of any of the terms and provisions of, or constitute (with
or without notice or lapse of time) a default under, the limited liability
agreement of the Depositor, or any material indenture, agreement or other
instrument to which the Depositor 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
Depositor's knowledge, any order, rule or regulation applicable to the Depositor
of any court or of any federal or state regulatory body, administrative agency
or other governmental instrumentality having jurisdiction over the Depositor or
its properties.

            (f) No Proceedings. There are no proceedings or investigations
pending or, to the Depositor's best knowledge, threatened against it before any
court, regulatory body,

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administrative agency or other tribunal or governmental instrumentality having
jurisdiction over it or its properties (i) asserting the invalidity of any of
the Basic Documents, (ii) seeking to prevent the issuance of the Certificates or
the Notes or the consummation of any of the transactions contemplated by any of
the Basic Documents, (iii) seeking any determination or ruling that might
materially and adversely affect its performance of its obligations under, or the
validity or enforceability of, any of the Basic Documents, or (iv) seeking to
adversely affect the federal income tax or other federal, state or local tax
characteristics of the Certificates.

      Section 2.11. Representations and Warranties of the Administrator. The
Administrator, as sponsor of the Trust, assumes all rights and obligations under
Section 2(a)(4) of the Securities Act of 1933, as amended (the "Securities
Act"). The Administrator makes the following representations and warranties on
which the Owner Trustee relies in accepting the Owner Trust Estate in trust and
executing the Certificates and upon which the Security Insurer relies in issuing
the Note Policy.

            (a) Organization and Good Standing. The Administrator is duly
organized and validly existing as a California corporation with corporate 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 the Basic Documents.

            (b) Due Qualification. The Administrator 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 the Basic Documents requires such qualification.

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

            (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 in connection with the
execution, delivery or performance of the Basic Documents, except for such as
have been obtained, effected or made.

            (e) No Violation. The consummation of the transactions contemplated
by this Agreement and the fulfillment of the terms hereof do not conflict with,
result in any breach of any of the terms and provisions of, or constitute (with
or without notice or lapse of time) a default under, the certificate of
incorporation or by-laws of the Administrator, or any material indenture,
agreement or other instrument to which the Administrator 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 Administrator's knowledge, any order, rule or regulation
applicable to the Administrator of any court or of any federal or state
regulatory

                                       7
<PAGE>

body, administrative agency or other governmental instrumentality having
jurisdiction over the Administrator or its properties.

            (f) No Proceedings. There are no proceedings or investigations
pending or, to the Administrator's best knowledge, threatened against it before
any court, regulatory body, administrative agency or other tribunal or
governmental instrumentality having jurisdiction over it or its properties (i)
asserting the invalidity of any of the Basic Documents, (ii) seeking to prevent
the issuance of the Certificates or the Notes or the consummation of any of the
transactions contemplated by any of the Basic Documents, (iii) seeking any
determination or ruling that might materially and adversely affect its
performance of its obligations under, or the validity or enforceability of, any
of the Basic Documents, or (iv) seeking to adversely affect the federal income
tax or other federal, state or local tax attributes of the Certificates.

      Section 2.12. Covenants of the Certificateholders. Each Certificateholder
agrees:

            (a) to be bound by the terms and conditions of the Certificate of
which the Holder is the owner and of this Agreement, including any supplements
or amendments hereto and to perform the obligations of a Holder 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
Security Insurer; and

            (b) until the completion of the events specified in Section 8.1(d),
not to, for any reason, institute proceedings for the Trust to be adjudicated
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.

      Section 2.13. Federal Income Tax Treatment of the Trust.

            (a) For so long as the Trust has a single owner for federal income
tax purposes, it will, pursuant to Treasury Regulations promulgated under
Section 7701 of the Code, be disregarded as an entity distinct from the
Certificateholder for all federal income tax purposes. Accordingly, for federal
income tax purposes, the Certificateholder will be treated as (i) owning all
assets owned by the Trust, (ii) having incurred all liabilities incurred by the
Trust, and (iii) all transactions between the Trust and the Certificateholder
will be disregarded.

            (b) 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.

            (c) If there is more than one owner of the Certificates, due to the
sale of the Certificates, issuance by the Trust of additional Certificates to a
Person other than the Residual Holder or otherwise, the Depositor and the Owner
Trustee, by entering into this Agreement, and

                                       8
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the Residual Holder and the Certificateholders, by acquiring any Certificates or
interest therein, (i) express their intention that the Certificates will qualify
as equity interests in a partnership for federal income tax purposes and (ii)
unless otherwise required by the appropriate taxing authorities, agree to treat
the Certificates as equity interests in a partnership for the purposes of
federal income taxes, state and local income and franchise taxes, and any other
taxes imposed upon, measured by, or based upon gross or net income. The parties
agree that, unless otherwise required by appropriate tax authorities, the Trust
shall file or cause to be filed annual or other necessary returns, reports and
other forms consistent with such characterization of the Trust for tax purposes.
At any such time that the Trust has two or more equity owners, this Agreement
will be amended, in accordance with Section 10.1 herein, and appropriate
provisions will be added so as to provide for the treatment of the Trust as a
partnership for federal income tax purposes.

                                  ARTICLE III.
                     CERTIFICATES AND TRANSFERS OF INTERESTS

      Section 3.1. Ownership. Upon the formation of the Trust by the
contribution by the Depositor pursuant to Section 2.5 and until the issuance of
the Certificate to the initial Certificateholder, the Depositor will be the sole
beneficiary of the Trust.

      Section 3.2. The Certificates. Each Certificate will 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 will have been affixed,
authorized to sign on behalf of the Trust, will be validly issued and entitled
to the benefit of this Agreement, notwithstanding that such individuals or any
of them will 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. Subject to the satisfaction of
the conditions herein and those conditions stated on the Certificate, a
transferee of a Certificate will become a Certificateholder, and will 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. Each Certificate will be issuable in minimum
denominations of no less than 5% of the beneficial interest in the Trust. Each
Certificate will represent a Beneficial Interest in the Trust.

      Section 3.3. Authentication of Certificates. Concurrently with the initial
sale of the Receivables to the Trust pursuant to the Sale and Servicing
Agreement, the Owner Trustee will cause the Certificates to be executed on
behalf of the Trust, authenticated and delivered to or upon the written order of
the Depositor, signed by its chairman of the board, its president or any vice
president, its treasurer or any assistant treasurer without further action by
the Depositor, in authorized denominations. No Certificate will entitle its
Holder to any benefit under this Agreement, or will be valid for any purpose,
unless there will appear on such Certificate a certificate of authentication
substantially in the form set forth in Exhibit A, executed by the Owner Trustee,
by manual or facsimile signature; such authentication will constitute conclusive
evidence that such Certificate is duly authenticated and delivered hereunder.
Each Certificate will be dated the date of its authentication.

                                       9
<PAGE>

      Section 3.4. Registration of Transfer and Exchange of Certificates. The
Certificate Registrar will keep or cause to be kept, at the office or agency
maintained pursuant to Section 3.7, a Certificate Register in which, subject to
such reasonable regulations as it may prescribe, the Owner Trustee will provide
for the registration of the Certificates and of transfers and exchanges of the
Certificates as herein provided. The Owner Trustee will be the initial
Certificate Registrar.

      The initial Certificateholder will provide the Certificate Registrar and
the Indenture Trustee with its name and address on the Closing Date. Upon any
transfers of a Certificate, the Certificate Registrar will notify the Indenture
Trustee of the name and address of each transferee in writing, by facsimile, on
the day of such transfer.

      Upon surrender for registration of transfer of a Certificate at the office
or agency maintained pursuant to Section 3.7, the Owner Trustee will execute,
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.

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

      No service charge will 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 expense, tax or
governmental charge that may be imposed in connection with any transfer or
exchange of a Certificate.

      To the fullest extent permitted by applicable law, no sale, pledge or
other transfer of a Certificate will be made unless (a) such sale, pledge or
other transfer (i) is made pursuant to an effective registration statement under
the Securities Act and any applicable state securities laws or (ii) such sale,
pledge or other transfer is made to a Person that is a "qualified institutional
buyer" as defined in Rule 144A under the Securities Act, (b) such sale, pledge
or other transfer will not cause the Trust to be treated as a publicly traded
partnership taxable as a corporation for federal income tax purposes, and (c)
such sale, pledge or other transfer is made to a Person who is a United States
Person (within the meaning of Section 7701(a)(30) of the Code) and who has
delivered to the Owner Trustee satisfactory evidence thereof. Each prospective
purchaser of a Certificate after the Closing Date will deliver a completed and
duly executed transferee's certificate (in the form of Exhibit C for "qualified
institutional buyers"), to the Owner Trustee and to the transferor for
inspection prior to effecting any requested transfer. The Issuer and the Owner
Trustee may rely conclusively upon the information contained in any such
transferee's certificate in the absence of knowledge to the contrary. In
connection with any transfer (other than the purchase of any Certificate by a
purchaser who delivers a transferee's certificate in the form of Exhibit C), the
Owner Trustee will require an Opinion of Counsel to the effect that such
transfer may be effected without registration under the Securities Act, which
Opinion of Counsel, if so required, will be addressed to the Issuer and the
Owner Trustee and will be secured at the expense of the Holder. The Owner
Trustee may rely upon the representation of

                                       10
<PAGE>

any transferee made to the Owner Trustee, and upon such Opinion of Counsel, and
will be fully protected in so doing. Any Certificateholders will be deemed to
have agreed to these restrictions on transfer.

      In order to preserve the exemption for resales and transfers provided by
Rule 144A under the Securities Act, the Issuer will provide to any
Certificateholder and any prospective purchaser designated by such
Certificateholder, upon request of such Certificateholder or such prospective
purchaser, such information required by Rule 144A as will enable the resale of
such Certificate to be made pursuant to Rule 144A. The Owner Trustee will
cooperate with the Issuer in providing the Issuer such information in its
possession regarding the Certificates, the Receivables and other matters
regarding the Certificates as the Issuer will reasonably request to meet its
obligations under the preceding sentence.

      At the option of a Holder, a Certificate may be exchanged for one or more
other Certificates of authorized denominations of a like aggregate beneficial
interest in the Trust upon surrender of the Certificate to be exchanged at the
Corporate Trust Office maintained pursuant to Section 3.7. Whenever any
Certificates are so surrendered for exchange, the Owner Trustee shall execute on
behalf of the Trust, authenticate and deliver one or more Certificates dated the
date of authentication by the Owner Trustee or any authenticating agent. Such
Certificates shall be delivered to the Holder making the exchange.

      Section 3.5. Mutilated, Destroyed, Lost or Stolen Certificates.

            (a) If (i) any mutilated Certificate will be surrendered to the
Certificate Registrar, or if the Certificate Registrar will receive evidence to
its satisfaction of the destruction, loss or theft of any Certificate and (ii)
there will be delivered to the Certificate Registrar and the Owner Trustee such
security or indemnity as may be required by them to hold each of them harmless,
then in the absence of notice that such Certificate has been acquired by a
protected purchaser, the Owner Trustee on behalf of the Trust will execute, and
the Owner Trustee will 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 3.5, the Owner Trustee or the Certificate
Registrar may require the payment of a sum sufficient to cover any expense, tax
or other governmental charge that may be imposed in connection therewith. Any
duplicate Certificate issued pursuant to this Section 3.5 will constitute
conclusive evidence of an ownership interest in the Trust, as if originally
issued, whether or not the mutilated, destroyed, lost or stolen Certificate will
be found at any time.

            (b) If, after the delivery of a replacement Certificate or payment
in respect of a mutilated, destroyed, lost or stolen Certificate pursuant to
Section 3.5(a), a protected purchaser of the original Certificate in lieu of
which such replacement Certificate was issued presents for payment such original
Certificate, the Owner Trustee shall be entitled to recover such payment from
the Person to whom such replacement Certificate was delivered or any Person
taking such replacement Certificate from such Person to whom such replacement
Certificate was delivered or any assignee of such Person, except a protected
purchaser, and shall be entitled to recover upon the security or indemnity
provided therefor to the extent of any loss, damage, cost or expense incurred by
the Owner Trustee in connection therewith.

                                       11
<PAGE>

            (c) The provisions of this Section 3.5 are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Certificates.

      Section 3.6. Persons Deemed Certificateholders. Every Person by virtue of
becoming a Certificateholder in accordance with this Agreement is 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 Security Insurer, and any agent of the Owner Trustee, the Certificate
Registrar and the Security Insurer, may treat the person in whose name any
Certificate will 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 for all other purposes whatsoever, and none of the Owner
Trustee, the Certificate Registrar or the Security Insurer nor any agent of the
Owner Trustee, the Certificate Registrar or the Security Insurer will be bound
by any notice to the contrary.

      Section 3.7. Maintenance of Office or Agency. The Owner Trustee will
maintain an office or offices or agency or agencies where Certificates may be
surrendered for registration of transfer or exchange and where notices and
demands to or upon the Owner Trustee in respect of the Certificates and the
Basic Documents may be served. The Owner Trustee initially designates its
principal Corporate Trust Office for such purposes. The Owner Trustee will give
prompt written notice to the Depositor, the Certificateholders and (unless an
Insurer Default has occurred and is continuing) the Security Insurer of any
change in the location of the Certificate Register or any such office or agency.

      Section 3.8. ERISA Restrictions. The Certificates may not be acquired by
or for the account 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, (b) a plan (as defined in
Section 4975(e)(1) of the Code) that is subject to Section 4975 of the Code, or
(c) any entity whose underlying assets include assets of a plan described in (a)
or (b) above by reason of such plan's investment in the entity (including,
without limitation, an insurance company general account) (each, a "Benefit
Plan"). By accepting and holding its beneficial ownership interest in its
Certificate, the Holder thereof is deemed to have represented and warranted that
it is not a Benefit Plan.

      Section 3.9. Access to List of Certificateholders' Names and Addresses.
The Owner Trustee shall furnish or cause to be furnished to the Servicer and the
Depositor, within 15 days after receipt by the Owner Trustee of a request
therefor from the Servicer or the Depositor in writing, a list of the names and
addresses of the Certificateholders as of the most recent Record Date. Each
Holder, by receiving and holding a Certificate, shall be deemed to have agreed
not to hold any of the Servicer, the Depositor or the Owner Trustee accountable
by reason of the disclosure of its name and address, regardless of the source
from which such information was derived.

                                       12
<PAGE>

                                  ARTICLE IV.
                         VOTING RIGHTS AND OTHER ACTIONS

      Section 4.1. Majority Certificateholders. Except as expressly provided
herein, any action that may be taken or consent that may be given or withheld by
the Certificateholders under this Agreement shall be effective if such action is
taken or consent is given or withheld by the Majority Certificateholders as of
such action or consent. Except as expressly provided herein, any written notice,
instruction, direction or other document of the Certificateholders delivered
pursuant to this Agreement shall be effective if signed by the Majority
Certificateholders.

      Section 4.2. Prior Notice to Certificateholders with Respect to Certain
Matters. With respect to the following matters, the Owner Trustee will not take
action unless at least 30 days before the taking of such action, the Owner
Trustee will have notified the Certificateholders in writing of the proposed
action and the Majority Certificateholders will not have notified the Owner
Trustee in writing prior to the 30th day after such notice is given that the
Majority Certificateholders have 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 Statute or unless such amendment would not materially and
adversely affect the interests of the Holder);

            (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 the Certificateholders;
or

            (d) except pursuant to Section 12.1(b) 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
of the Certificateholders.

The Owner Trustee will notify the Certificateholders in writing of any
appointment of a successor Note Registrar or Indenture Trustee within five
Business Days after receipt of notice thereof.

      Section 4.3. Action by Certificateholders with Respect to Certain Matters.
The Owner Trustee will not have the power, except upon the direction of all
Certificateholders or the Security Insurer in accordance with the Basic
Documents, to (a) remove the Servicer under the Sale and Servicing Agreement
pursuant to Section 9.2 thereof or (b) except as expressly provided in the Basic
Documents, sell the Receivables after the termination of the Indenture. The
Owner Trustee will take the actions referred to in the preceding sentence only
upon written instructions signed by all Certificateholders and the furnishing of
indemnification satisfactory to the Owner Trustee by all Certificateholders.

                                       13
<PAGE>

      Section 4.4. Restrictions on Certificateholders' Power.

            (a) No Certificateholder will 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 any of the Basic
Documents or would be contrary to Section 2.3 nor will the Owner Trustee be
obligated to follow any such direction, if given.

            (b) The Certificateholders will not have any right by virtue or by
availing themselves 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 the Certificateholders constitute the
Majority Certificateholders who are the Instructing Party pursuant to Section
5.3 and unless the Certificateholders previously will have given to the Owner
Trustee a written notice of default and of the continuance thereof, as provided
in this Agreement, and also unless the Certificateholders will 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 will 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 10 days after its receipt of such notice, request, and offer of
indemnity, has neglected or refused to institute any such action, suit, or
proceeding, and during such 10-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 4.4 or Section 5.3. For the protection and
enforcement of the provisions of this Section 4.4, the Certificateholders and
the Owner Trustee are entitled to such relief as can be given either at law or
in equity.

      Section 4.5. Rights of Security Insurer. Notwithstanding anything to the
contrary in the Basic Documents, without the prior written consent of the
Security Insurer (so long as no Insurer Default has occurred and is continuing),
the Owner Trustee will not (a) remove the Servicer, (b) 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, (c) 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 (d)
amend the Certificate of Trust (other than as may be required by the Statutory
Trust Statute).

                                   ARTICLE V.
                      AUTHORITY AND DUTIES OF OWNER TRUSTEE

      Section 5.1. General Authority. 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 Majority
Certificateholders will 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 Class A-1 Notes in the aggregate principal amount of
$245,000,000, Class A-2 Notes in the aggregate principal amount of $335,000,000,
Class A-3 Notes in the aggregate principal amount of $290,000,000 and Class A-4
Notes in the aggregate principal amount of $234,000,000. In addition to the
foregoing, the Owner Trustee is authorized, but will not be

                                       14
<PAGE>

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.

      Section 5.2. General Duties. It will be the duty of the Owner Trustee 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
Holders, subject to the Basic Documents and in accordance with the provisions of
this Agreement. Notwithstanding the foregoing, the Owner Trustee is deemed to
have discharged its duties and responsibilities under the Basic Documents to the
extent the Servicer or Administrator has agreed 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 will not be liable for the default or
failure of the Servicer or Administrator to carry out its obligations.

      Section 5.3. Action upon Instruction.

            (a) Subject to Article IV, the Security Insurer (so long as any
Class A Notes are outstanding and an Insurer Default will not have occurred and
be continuing) or the Majority Certificateholders (if an Insurer Default has
occurred and is continuing or if no Class A Notes are outstanding) (the
"Instructing Party") has the exclusive right to direct the actions of the Owner
Trustee in the management of the Trust. The Instructing Party will ensure that
such instructions are not inconsistent with the express terms set forth herein
or in any Basic Document. The Instructing Party will not instruct the Owner
Trustee in a manner inconsistent with the Basic Documents.

            (b) The Owner Trustee will not be required to take any action
hereunder or under any Basic Document if the Owner Trustee has reasonably
determined, or has 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 will promptly give notice (in
such form as will 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 will not be
liable on account of such action to any Person. If the Owner Trustee will 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 will be under no duty to, take
or refrain from taking such action, not inconsistent with the Basic Documents,
as it will deem to be in the best interests of the Certificateholders, and will
have no liability to any Person for such action or inaction.

            (d) If 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 if this Agreement permits any determination by
the Owner Trustee or is silent or is incomplete as to the course of

                                       15
<PAGE>

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 will 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 will not be liable, on account of such action or inaction, to any
Person. If the Owner Trustee will 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 will be under no duty to, take or refrain from taking
such action, not inconsistent with the Basic Documents, as it will deem to be in
the best interests of the Certificateholders, and will 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 will 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 will
be read into this Agreement or any Basic Document against the Owner Trustee. The
Owner Trustee will 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 filing for the Trust with the Securities and
Exchange Commission or to record this Agreement or any Basic Document. The Owner
Trustee 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, the Owner
Trustee (solely in its individual capacity) 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 will not manage, control, use, sell, dispose of or otherwise
deal with any part of the Owner Trust Estate except (a) in accordance with the
powers granted to and the authority conferred upon the Owner Trustee pursuant to
this Agreement, (b) in accordance with the Basic Documents or (c) in accordance
with any document or instruction delivered to the Owner Trustee pursuant to
Section 5.3.

      Section 5.6. Restrictions. The Owner Trustee will 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 taxable as a corporation for federal income tax purposes. No
Certificateholder will direct the Owner Trustee to take action that would
violate the provisions of this Section 5.6.

                                   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

                                       16
<PAGE>

actually received by it constituting part of the Owner Trust Estate upon the
terms of the Basic Documents. The Owner Trustee will not be answerable or
accountable hereunder or under any Basic Document under any circumstances,
except (i) for its own willful misconduct, bad faith or gross 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 the Owner Trustee to perform obligations expressly
undertaken by it in the last sentence of Section 5.4 hereof, and (iv) 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 will not be liable for any error of judgment
made by a Responsible Officer of the Owner Trustee;

            (b) the Owner Trustee will 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 the Majority Certificateholders;

            (c) no provision of this Agreement or any Basic Document will
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 has 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 will 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 will not be responsible for or in respect of
the validity or sufficiency of this Agreement or for the due execution hereof by
the Depositor 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 the Certificates, and the Owner Trustee will in no event
assume or incur any liability, duty or obligation to the Security Insurer,
Indenture Trustee, any Noteholder or to any Certificateholder, other than as
expressly provided for herein;

            (f) the Owner Trustee will not be liable for the default or
misconduct of the Security Insurer, the Administrator, the Indenture Trustee, or
the Servicer under any of the Basic Documents or otherwise and the Owner Trustee
has no obligation or liability to perform the obligations under the Basic
Documents that are required to be performed by the Administrator, the Indenture
Trustee or the Servicer under the Sale and Servicing Agreement; and

            (g) the Owner Trustee will 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 the Majority Certificateholders, unless such Instructing
Party or Majority Certificateholders has offered to the Owner Trustee security
or indemnity satisfactory to it against the costs, expenses and liabilities that
may be incurred by the

                                       17
<PAGE>

Owner Trustee therein or thereby. The right of the Owner Trustee to perform any
discretionary act enumerated in this Agreement or in any Basic Document will not
be construed as a duty, and the Owner Trustee will not be answerable for other
than its gross negligence, bad faith or willful misconduct in the performance of
any such act.

      With respect to the Security 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 Security Insurer or
Instructing Party shall be read into the Basic Documents against the Owner
Trustee. The Owner Trustee shall not be deemed to owe any fiduciary duty to the
Security 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 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 6.2. Furnishing of Documents. The Owner Trustee will furnish to a
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 hereby
represents and warrants to the Depositor, the Holder and the Security Insurer
(which will have relied on such representations and warranties in issuing the
Note 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. 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.

            (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
federal or Delaware state 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.

            (d) This Agreement constitutes a legal, valid and binding obligation
of the Owner Trustee, enforceable against the Owner Trustee in accordance with
its terms, subject as to enforceability to applicable bankruptcy, insolvency,
reorganization, convservatorship, receivership, liquidation and other similar
laws affecting enforcement of the rights of creditors of banks generally and to
equitable limitations on the availability of specific remedies.

                                       18
<PAGE>

      Section 6.4. Reliance; Advice of Counsel.

            (a) The Owner Trustee will 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 will 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 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 will not be
liable for the conduct or misconduct of such agents or attorneys if such agents
or attorneys will have been selected by the Owner Trustee with reasonable care,
and (ii) may consult with counsel, accountants and other skilled persons to be
selected in good faith. The Owner Trustee will not be liable for anything done,
suffered or omitted in good faith by it in accordance with the 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.

      Section 6.5. Not Acting in Individual Capacity. Except as provided in this
Article VI, in accepting the trust hereby created Wilmington Trust Company 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 will 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) will be taken as the
statements of the Certificateholders 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 any Certificate (other than the signature and
countersignature of the Owner Trustee on any Certificate) or the Notes, or of
any Receivable or related documents. The Owner Trustee will 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 Certificateholders 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

                                       19
<PAGE>

any Receivable; the performance or enforcement of any Receivable; the compliance
by the Depositor, 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 or any other capacity may become the owner or pledgee of the Notes
and may deal with the Depositor, 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 any of the Basic Documents to which the Trust or the
Owner Trustee is a party will be made only from the income and proceeds of the
Owner Trust Estate and only to the extent that the Trust will have received
income or proceeds from the Owner Trust Estate to make such payments in
accordance with the terms hereof. Wilmington Trust Company, or any successor
thereto, in its individual capacity, will not be liable for any amounts payable
under 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 herein to the contrary, neither Wilmington Trust Company or
any successor thereto, nor the Owner Trustee will 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, (a) require the consent or approval or
authorization or order 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; (b)
result in any fee, tax or other governmental charge under the laws of the State
of Delaware becoming payable by Wilmington Trust Company (or any successor
thereto); or (c) subject Wilmington Trust Company (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 Wilmington Trust Company (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 will
receive as compensation for its services hereunder such fees as have been
separately agreed upon before the date hereof between Triad and the Owner
Trustee, and the Owner Trustee will be entitled to be reimbursed by Triad 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. Triad will indemnify the Owner Trustee and
its officers, directors, employees, successors, assigns, agents and servants
(collectively, the "Indemnified

                                       20
<PAGE>

Parties") from and against, any and all costs, expenses, losses, damages, claims
and liabilities (collectively, "Expenses"), arising out of or resulting from the
Basic Documents, the Owner Trust Estate, the administration of the Owner Trust
Estate or the action or inaction of the Owner Trustee hereunder, except that
Triad will not be liable for or required to indemnify the Owner Trustee from and
against Expenses (i) arising or resulting from any of the matters described in
the third sentence of Section 6.1 and (ii) constituting federal, state or other
taxes arising out of any fees paid to the Owner Trustee pursuant to the Basic
Documents.

      Indemnification under this Section 7.2 will include reasonable fees and
expenses of counsel and expenses of litigation and the indemnities contained in
this Section 7.2 and the rights under Section 7.1 will survive the resignation
or termination of the Owner Trustee or the termination of this Agreement. In any
event of any claim, action or proceeding for which indemnity will be sought
pursuant to this Section 7.2, the Owner Trustee's choice of legal counsel will
be subject to the approval of Triad which approval will not be unreasonably
withheld.

      Section 7.3. Payments to the Owner Trustee. Any amounts paid to the Owner
Trustee pursuant to this Article VII will 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
will be with recourse to the Owner Trust Estate only and specifically will be
without recourse to the assets of the Holders.

                                  ARTICLE VIII.
                         TERMINATION OF TRUST AGREEMENT

      Section 8.1. Termination of Trust Agreement.

            (a) This Agreement and the Trust will terminate in accordance with
Section 3808 of the Statutory Trust Statute and be of no further force or effect
upon the later of (i) the maturity or other liquidation of the last Receivable
(including the purchase by the Servicer at its option of the corpus of the Trust
as described in Section 10.1 of the Sale and Servicing Agreement) and the
subsequent distribution of amounts in respect of such Receivables as provided in
the Basic Documents, or (ii) the payment to the Certificateholders of all
amounts required to be paid to them pursuant to this Agreement and the payment
to the Security Insurer of all amounts payable or reimbursable to them pursuant
to the Sale and Servicing Agreement; provided, however, that the rights to
indemnification under Section 7.2 and the rights under Section 7.1 will survive
the termination of the Trust. Triad or the Servicer will promptly notify the
Owner Trustee and the Security Insurer of any prospective termination pursuant
to this Section 8.1. The bankruptcy, liquidation, dissolution, death or
incapacity of any Certificateholder will 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.

                                       21
<PAGE>

            (b) Neither the Depositor nor the Certificateholders will be
entitled to revoke or terminate the Trust.

            (c) Notice of any termination of the Trust, specifying the
Distribution Date upon which each Certificateholder will surrender its
Certificate to the Owner Trustee for payment of the final distribution, if any,
and cancellation, will be given by the Owner Trustee by letter to the
Certificateholders 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 Distribution Date upon or with respect to
which final payment of each Certificate will be made upon presentation and
surrender of such Certificate at the office of the Owner Trustee therein
designated, (ii) the amount of any such final payment and (iii) that the Record
Date otherwise applicable to such Distribution Date is not applicable, payments
being made only upon presentation and surrender of such Certificate at the
office of the Owner Trustee therein specified. The Owner Trustee will give such
notice to the Indenture Trustee at the time such notice is given to the
Certificateholders. Upon presentation and surrender of a Certificate, the Owner
Trustee will instruct the Indenture Trustee to cause to be distributed to the
Certificateholders thereof amounts distributable on such Distribution Date
pursuant to Section 5.7 of the Sale and Servicing Agreement.

            If a Certificateholder does not surrender its Certificate for
cancellation within six months after the date specified in the above mentioned
written notice, the Owner Trustee will give a second written notice to such
Certificateholder to surrender its Certificate for cancellation and receive the
final distribution with respect thereto. If within one year after the second
notice the Certificate will not have been surrendered for cancellation, the
Owner Trustee may take appropriate steps, or may appoint an agent to take
appropriate steps, to contact such Certificateholder concerning surrender of its
Certificate, and the cost thereof will be paid out of the funds and other assets
that will remain subject to this Agreement. Any funds remaining in the Trust
after exhaustion of such remedies will be distributed, subject to applicable
escheat laws, by the Owner Trustee to the Certificateholders.

            (d) Upon the completion of the winding up of the Trust in accordance
with Section 3808 of the Statutory Trust Statute and its termination, the Owner
Trustee will 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 Statute.

                                   ARTICLE IX.
             SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

      Section 9.1. Eligibility Requirements for Owner Trustee. The Owner Trustee
will at all times be a corporation (i) satisfying the provisions of Section
3807(a) of the Statutory Trust Statute; (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 Security Insurer in its sole discretion
(so long as an Insurer Default will not have occurred and be continuing). If
such corporation will 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 9.1, the combined capital and
surplus of such corporation will be deemed to be its combined capital and
surplus as set forth in its most

                                       22
<PAGE>

recent report of condition so published. In case at any time the Owner Trustee
will cease to be eligible in accordance with the provisions of this Section 9.1,
the Owner Trustee will 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 written notice thereof to the Depositor, the Security Insurer, the
Administrator and the Servicer. Upon receiving such notice of resignation, the
Administrator will promptly appoint a successor Owner Trustee by written
instrument, in duplicate, one copy of which instrument will be delivered to the
resigning Owner Trustee and one copy to the successor Owner Trustee, provided
that the Administrator has received written confirmation from each of the Rating
Agencies that the proposed appointment will not result in an increased capital
charge to the Security Insurer by either of the Rating Agencies. If no successor
Owner Trustee has been so appointed and has accepted appointment within 30 days
after the giving of such notice of resignation, the resigning Owner Trustee or
the Security Insurer may petition any court of competent jurisdiction for the
appointment of a successor Owner Trustee.

      If at any time the Owner Trustee will cease to be eligible in accordance
with the provisions of Section 9.1 and will fail to resign after written request
therefor by the Administrator, or if at any time the Owner Trustee will be
legally unable to act, or will be adjudged bankrupt or insolvent, or a receiver
of the Owner Trustee or of its property will be appointed, or any public officer
will take charge or control of the Owner Trustee or of its property or affairs
for the purpose of rehabilitation, conservation or liquidation, then the
Administrator with the consent of the Security Insurer (so long as an Insurer
Default will not have occurred and be continuing) may remove the Owner Trustee.
If the Administrator removes the Owner Trustee under the authority of the
immediately preceding sentence, the Administrator will promptly appoint a
successor Owner Trustee by written instrument, in duplicate, one copy of which
instrument will be delivered to the outgoing Owner Trustee so removed, one copy
to the Security Insurer and one copy to the successor Owner Trustee and payment
of all fees owed to the outgoing Owner Trustee.

      Any resignation or removal of the Owner Trustee and appointment of a
successor Owner Trustee pursuant to any of the provisions of this Section 9.2
will 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 Administrator will provide notice of such
resignation or removal of the Owner Trustee to each of the Rating Agencies.

      Section 9.3. Successor Owner Trustee. Any successor Owner Trustee
appointed pursuant to Section 9.2 will execute, acknowledge and deliver to the
Depositor, the Servicer, the Administrator, the Security 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 will become effective and such successor Owner Trustee, without any
further act, deed or conveyance, will 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 will 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 Depositor, the Administrator and the predecessor Owner
Trustee will

                                       23
<PAGE>

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 will accept appointment as provided in this
Section 9.3 unless at the time of such acceptance such successor Owner Trustee
will be eligible pursuant to Section 9.1.

      Upon acceptance of appointment by a successor Owner Trustee pursuant to
this Section 9.3, the Administrator will mail notice of the successor of such
Owner Trustee to the Certificateholders, the Indenture Trustee, the Noteholders
and the Rating Agencies. If the Administrator fails to mail such notice within
10 days after acceptance of appointment by the successor Owner Trustee, the
successor Owner Trustee will cause such notice to be mailed at the expense of
the Administrator.

      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 will be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Owner Trustee, will be the successor of the Owner Trustee hereunder, provided
such corporation will 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 will mail notice of such merger or consolidation to the Rating
Agencies.

      Section 9.5. Appointment of Co-Trustee or Separate Trustee.
Notwithstanding any other provisions of this Agreement, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any part
of the Owner Trust Estate or any Financed Vehicle may at the time be located,
the Servicer and the Owner Trustee acting jointly have the power and will
execute and deliver all instruments to appoint one or more Persons approved by
the Owner Trustee and the Security 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 9.5, such powers, duties, obligations, rights and trusts as the
Servicer and the Owner Trustee may consider necessary or desirable. If the
Servicer has not joined in such appointment within 15 days after the receipt by
it of a request so to do, the Owner Trustee subject (unless an Insurer Default
has occurred and is continuing) to the approval of the Security Insurer (which
approval will not be unreasonably withheld) has the power to make such
appointment. No co-trustee or separate trustee under this Agreement will 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 will be required pursuant to Section 9.3.

      Each separate trustee and co-trustee will, to the extent permitted by law,
be appointed and act subject to the following provisions and conditions:

            (a) all rights, powers, duties and obligations conferred or imposed
upon the Owner Trustee will be conferred upon and exercised or performed by the
Owner Trustee and

                                       24
<PAGE>

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 will 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) will be
exercised and performed singly by such separate trustee or co-trustee, but
solely at the direction of the Owner Trustee;

            (b) no trustee under this Agreement will be personally liable by
reason of any act or omission of any other trustee under this Agreement; and

            (c) the Administrator 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 will 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 will refer to this Agreement and the conditions
of this Article IX. Each separate trustee and co-trustee, upon its acceptance of
the trusts conferred, will 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 will be filed with the Owner Trustee and a
copy thereof given to the Servicer and the Security Insurer.

      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
should die, become incapable of acting, resign or be removed, all of its
estates, properties, rights, remedies and trusts will 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 Depositor, the
Administrator and the Owner Trustee, with the prior written consent of the
Security Insurer (so long as an Insurer Default will 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, (i) to cure any
ambiguity or defect or (ii) to correct, supplement or modify any provisions in
this Agreement; provided, however, that such action will not, as evidenced by an
Opinion of Counsel which may be based upon a certificate of the Servicer,
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 Security Insurer (so long as an Insurer Default
will not have occurred and

                                       25
<PAGE>

be continuing), by the Depositor, the Administrator 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 Noteholders, with the
consent of the Noteholders evidencing not less than a majority of the
Outstanding Amount of the Notes, and the consent of the Majority
Certificateholders (which consent of any Certificateholder or Noteholder given
pursuant to this Section 10.1(b) or pursuant to any other provision of this
Agreement will be conclusive and binding on such Certificateholder or
Noteholder) 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 the Certificateholders; provided,
however, that, subject to the express rights of the Security Insurer under the
Basic Documents, no such amendment will (i) increase or reduce in any manner the
amount of, or accelerate or delay the timing of, collections of payments on
Receivables or distributions that will be required to be made for the benefit of
the Noteholders or the Certificateholders or (ii) reduce the aforesaid
percentage of the Outstanding Amount of the Notes and aforesaid percentage of
the Certificateholders required to consent to any such amendment, without the
consent of the Holders of all the outstanding Notes and Certificates.

            Promptly after the execution of any such amendment or consent, the
Owner Trustee will furnish written notification of the substance of such
amendment or consent to the Certificateholders, the Indenture Trustee and each
of the Rating Agencies.

            It will not be necessary for the consent of the Certificateholders,
the Noteholders or the Indenture Trustee pursuant to this Section 10.1(b) to
approve the particular form of any proposed amendment or consent, but it will be
sufficient if such consent will approve the substance thereof. The manner of
obtaining such consents (and any other consents of the Certificateholders
provided for in this Agreement or in any other Basic Document) and of evidencing
the authorization of the execution thereof by the Certificateholders will 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 will 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 will 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 will 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 will have legal title to any part of the Owner Trust
Estate. The Certificateholders will be entitled to receive distributions in
accordance with Article VIII. No transfer, by operation of law or otherwise, of
any right, title or interest of a Certificateholder to and in its ownership
interest in the Owner Trust Estate will operate to terminate this Agreement or
the trust 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.

                                       26
<PAGE>

      Section 10.3. Limitations on Rights of Others. The provisions of this
Agreement are solely for the benefit of the Owner Trustee, the Depositor, the
Certificateholders, the Servicer and, to the extent expressly provided herein,
the Security Insurer, the Indenture Trustee and the Noteholders, and nothing in
this Agreement, whether express or implied, will 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) All demands, notices and communications hereunder will be in
writing and will be deemed to have been duly given to the addressee if mailed,
by first-class registered mail, postage prepaid service, confirmed facsimile
transmission, or a nationally recognized express courier, as follows:

                  If to the Administrator:

                              Triad Financial Corporation
                              7711 Center Avenue, Suite 100
                              Huntington Beach, CA  92647
                              Attention: Chief Financial Officer

                  If to the Owner Trustee:

                              Wilmington Trust Company
                              Rodney Square North
                              1100 North Market Street
                              Wilmington, DE  19890
                              Attention: Corporate Trust Administration

                  If to the Depositor:

                              Triad Financial Special Purpose LLC
                              7711 Center Avenue, Suite 390
                              Huntington Beach, CA  92647
                              Attention: Chief Financial Officer

                  If to the Security Insurer:

                              Ambac Assurance Corporation
                              One State Street Plaza
                              New York, NY  10004

(in each case in which notice or other communication to the Security Insurer
refers to an Event of Default, a claim on the Note Policy or with respect to
which failure on the part of the Security Insurer to respond will 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

                                       27
<PAGE>

Head-Financial Guaranty Group "URGENT MATERIAL ENCLOSED"); or, as to each party,
at such other address as will be designated by such party in a written notice to
each other party. Any such demand, notice or communication hereunder will be
deemed to have been received on the date delivered to or received at the
premises of the addressee as evidenced by the date noted on the return receipt.

            (b) Any notice required or permitted to be given to a
Certificateholder will be given by first-class mail, postage prepaid, at the
address of the Holder. Any notice so mailed within the time prescribed in this
Agreement will be conclusively presumed to have been duly given, whether or not
such Certificateholder receives such notice.

      Section 10.5. Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction will, 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 will 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 will be an original, but all such counterparts will together
constitute but one and the same instrument.

      Section 10.7. Assignments. This Agreement will inure to the benefit of and
be binding upon the parties hereto and their respective successors and permitted
assigns.

      Section 10.8. No Recourse. Each Certificateholder by accepting a
Certificate acknowledges that a Certificate represents a beneficial interest in
the Trust only and does not represent interests in or obligations of the
Depositor, the Servicer, the Owner Trustee, the Indenture Trustee, the Security
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 the
Certificates or the Basic Documents.

      Section 10.9. No Petition. To the fullest extent permitted by applicable
law, the Owner Trustee and the Administrator, by entering into this Agreement,
each Certificateholder, by accepting a Certificate, and the Indenture Trustee
and each Noteholder, by accepting the benefits of this Agreement, each hereby
covenants and agrees that it will not at any time institute against the
Depositor or the Issuer, or join in any institution against the Depositor or the
Issuer, of 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 or any of the Basic Documents.

      Section 10.10. Headings. The headings of the various Articles and Sections
herein are for convenience of reference only and will not define or limit any of
the terms or provisions hereof.

      Section 10.11. GOVERNING LAW. THIS AGREEMENT WILL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE, WITHOUT
REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND

                                       28
<PAGE>

THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER WILL BE DETERMINED
IN ACCORDANCE WITH SUCH LAWS.

      Section 10.12. Administrator. The Administrator 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 will
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 will execute and
deliver to the Administrator a limited power of attorney appointing the
Administrator 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.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

                                       29
<PAGE>

      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
                                             Owner Trustee

                                       By: /s/ Rachel L. Simpson
                                           ------------------------------------
                                       Name:  Rachel L. Simpson
                                       Title: Financial Services Officer

                                       TRIAD FINANCIAL SPECIAL PURPOSE LLC
                                           Depositor

                                       By: /s/ Mike L. Wilhelms
                                           -------------------------------------
                                       Name:  Mike L. Wilhelms
                                       Title: Chief Financial Officer

                                       TRIAD FINANCIAL CORPORATION
                                           Administrator

                                       By: /s/ Mike L. Wilhelms
                                           -------------------------------------
                                       Name:  Mike L. Wilhelms
                                       Title: Senior Vice President
                                              and Chief Financial Officer

<PAGE>

                                                                       EXHIBIT A

NUMBER
R-1

                       SEE REVERSE FOR CERTAIN DEFINITIONS

                      THIS CERTIFICATE IS NOT TRANSFERABLE,
                       EXCEPT UNDER THE LIMITED CONDITIONS
                        SPECIFIED IN THE TRUST AGREEMENT

                            ASSET BACKED CERTIFICATE

evidencing a beneficial ownership interest in certain distributions of the
Trust, as defined below, the property of which includes a pool of retail
installment sale contracts secured by new and used automobiles and light duty
trucks.

      THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE APPLICABLE
SECURITIES LAWS OF ANY STATE. ACCORDINGLY, TRANSFER OF THIS CERTIFICATE IS
SUBJECT TO CERTAIN RESTRICTIONS SET FORTH IN SECTION 3.4 OF THE TRUST AGREEMENT.
BY ITS ACCEPTANCE OF THIS CERTIFICATE THE HOLDER OF THIS CERTIFICATE HAS
REPRESENTED TO THE ISSUER AND THE OWNER TRUSTEE THAT IT IS A "QUALIFIED
INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT ("RULE
144A") AND IS ACQUIRING THIS 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 CERTIFICATE MAY BE MADE BY ANY
PERSON UNLESS (I) SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND ANY APPLICABLE
STATE SECURITIES LAWS OR IS EXEMPT FROM THE REGISTRATION REQUIREMENTS UNDER THE
SECURITIES ACT AND SUCH STATE SECURITIES LAWS, (II) SO LONG AS THIS CERTIFICATE
IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, 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 (III) 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 WILL REQUIRE THAT BOTH THE PROSPECTIVE
TRANSFEROR AND THE PROSPECTIVE

                                       A-1
<PAGE>

TRANSFEREE CERTIFY TO THE OWNER TRUSTEE AND THE ISSUER IN WRITING THE FACTS
SURROUNDING SUCH TRANSFER, WHICH CERTIFICATION WILL BE IN FORM AND SUBSTANCE
SATISFACTORY TO THE OWNER TRUSTEE AND THE ISSUER, AND (B) THE OWNER TRUSTEE MAY
REQUIRE A WRITTEN OPINION OF COUNSEL (WHICH WILL NOT BE AT THE EXPENSE OF THE
ISSUER OR THE OWNER TRUSTEE) SATISFACTORY TO THE ISSUER 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 CERTIFICATES WITH A
BENEFICIAL INTEREST OF LESS THAN 5%.

      NO TRANSFER OF THIS CERTIFICATE WILL BE PERMITTED TO BE MADE TO ANY PERSON
UNLESS THE OWNER TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEREE TO THE
EFFECT THAT 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, (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 (C) ANY ENTITY WHOSE
UNDERLYING ASSETS INCLUDE ASSETS OF A PLAN DESCRIBED IN (A) OR (B) ABOVE BY
REASON OF SUCH PLAN'S INVESTMENT IN THE ENTITY (INCLUDING, WITHOUT LIMITATION,
AN INSURANCE COMPANY GENERAL ACCOUNT). EACH TRANSFEREE OF A BENEFICIAL INTEREST
IN THIS CERTIFICATE WILL BE DEEMED TO HAVE MADE THE FOREGOING REPRESENTATION.

(THIS CERTIFICATE DOES NOT REPRESENT AN INTEREST IN OR OBLIGATION OF TRIAD
FINANCIAL SPECIAL PURPOSE LLC OR ANY OF ITS AFFILIATES.)

      THIS CERTIFIES THAT [_______________] is the registered owner of a
nonassessable, fully-paid, beneficial ownership interest in certain
distributions of Triad Automobile Receivables Trust 2005-A (the "Trust") formed
by Triad Financial Special Purpose LLC, a Delaware limited liability company
(the "Depositor").

      The Trust was created pursuant to a Trust Agreement dated April 15, 2005,
as amended and restated as of May 26, 2005 (the "Trust Agreement"), among the
Depositor, Triad Financial Corporation (the "Administrator") and Wilmington
Trust Company, as owner trustee (the "Owner Trustee"), a summary of certain of
the pertinent provisions of which is set forth below. To the extent not
otherwise defined herein, the capitalized terms used herein have the meanings
assigned to them in the Trust Agreement.

      This is one of the duly authorized Certificates designated as "Asset
Backed Certificates" (herein called the "Certificate"). Also issued under the
Indenture, dated as of May 26, 2005, between the Trust and JPMorgan Chase Bank,
N.A., as indenture trustee, are four classes of Notes designated as "Class A-1
3.30% Asset Backed Notes", "Class A-2 3.79% Asset Backed Notes", "Class A-3
4.05% Asset Backed Notes" and the "Class A-4 4.22% Asset Backed Notes." This
Certificate is issued under and is subject to the terms, provisions and
conditions of the Trust Agreement, to which Trust Agreement the holder of this
Certificate by virtue of the acceptance

                                      A-2
<PAGE>

hereof assents and by which such holder is bound. The property of the Trust
includes a pool of retail installment sale contracts secured by new and used
automobiles and light duty trucks (the "Receivables"), all monies due thereunder
after the Cutoff Date, security interests in the vehicles financed thereby,
certain bank accounts and the proceeds thereof, proceeds from claims on certain
insurance policies and certain other rights under the Trust Agreement and the
Sale and Servicing Agreement, and all right, title and interest of the Depositor
in and to the Purchase Agreement dated as of May 26, 2005 between Triad
Financial Corporation and the Depositor and all proceeds of the foregoing.

      The holder of this Certificate acknowledges and agrees that its rights to
receive distributions in respect of this Certificate are subordinated to the
rights of the Noteholders as described in the Sale and Servicing Agreement, the
Indenture and the Trust Agreement, as applicable.

      Distributions on this Certificate will be made as provided in the Trust
Agreement and the Sale and Servicing Agreement by the Indenture Trustee by wire
transfer or check mailed to the Certificateholder without the presentation or
surrender of this Certificate or the making of any notation hereon. Except as
otherwise provided in the Trust Agreement or the Sale and Servicing Agreement
and notwithstanding the above, the final distribution on this Certificate will
be made after due notice by the Owner Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency maintained for the purpose by the Owner Trustee.

      Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof, which further provisions will for all purposes have
the same effect as if set forth at this place.

      Unless the certificate of authentication hereon has been executed by an
authorized officer of the Owner Trustee, by manual or facsimile signature, this
Certificate will not entitle the holder hereof to any benefit under the Trust
Agreement or the Sale and Servicing Agreement or be valid for any purpose.

      THIS CERTIFICATE WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW
PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
WILL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

                                      A-3
<PAGE>

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

                                  TRIAD AUTOMOBILE RECEIVABLES TRUST 2005-A

                                  By: WILMINGTON TRUST COMPANY,
                                       not in its individual capacity but
                                       solely as Owner Trustee of the Trust

Dated: May ____, 2005             By: __________________________________________
                                       Authorized Signatory

                  OWNER TRUSTEE'S CERTIFICATE OF AUTHENTICATION

  This is the Certificate referred to in the within-mentioned Trust Agreement.

WILMINGTON TRUST COMPANY,           OR  WILMINGTON TRUST COMPANY,
not in its individual capacity          not in its individual capacity
but solely as Owner Trustee of          but solely as Owner Trustee of
the Trust                               the Trust

By:_____________________________        By:_____________________________________
    Authenticating Agent                    Authorized Signatory

By:_____________________________
    Authorized Signatory

                                       A-4
<PAGE>

                            (Reverse of Certificate)

      This Certificate does not represent an obligation of, or an interest in,
the Depositor, the Administrator, the Servicer, the Owner Trustee or any
Affiliates of any of them and no recourse may be had against such parties or
their assets, except as may be expressly set forth or contemplated herein or in
the Basic Documents. In addition, this Certificate is not guaranteed by any
governmental agency or instrumentality and is limited in right of payment to
certain collections with respect to the Receivables, all as more specifically
set forth herein and in the Sale and Servicing Agreement. A copy of each of the
Sale and Servicing Agreement and the Trust Agreement may be examined during
normal business hours at the principal office of the Depositor, and at such
other places, if any, designated by the Administrator, by any Certificateholder
upon written request.

      The Trust Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor under the Trust Agreement at any time by the Depositor, the
Administrator and the Owner Trustee with the consent of the Security Insurer,
the Majority Noteholders and the Majority Certificateholders. Any such consent
by the Holder of this Certificate will be conclusive and binding on such Holder
and on all future Holders of this Certificate and of any Certificate issued upon
the transfer hereof or in exchange hereof or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Trust Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of any Certificateholder.

      As provided in the Trust Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registerable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies of the Certificate Registrar maintained by
the Owner Trustee accompanied by a written instrument of transfer in form
satisfactory to the Owner Trustee and the Certificate Registrar duly executed by
the holder hereof or such holder's attorney duly authorized in writing, and
thereupon a new Certificate evidencing the same aggregate interest in the Trust
will be issued to the designated transferee. The initial Certificate Registrar
appointed under the Trust Agreement is Wilmington Trust Company. No service
charge will be made for any such registration of transfer or exchange, but the
Owner Trustee or the Certificate Registrar may require payment of a sum
sufficient to cover any expense, tax or governmental charge payable in
connection therewith. The Owner Trustee may decline to register this Certificate
if (1) the registration of this Certificate in the name of the purchaser or
other transferee, in the reasonable belief of the Owner Trustee, will cause the
Trust to be treated as a publicly traded partnership taxable as a corporation
for federal income tax purposes, or (2) the purchaser or the transferee seeking
registration of this Certificate is not a United States Person (within the
meaning of Section 7701(a)(30) of the Code) or fails to deliver to the Owner
Trustee satisfactory evidence of its status as such a United States Person.

      The Owner Trustee, the Security Insurer and any agent of the Owner Trustee
or the Security Insurer may treat the person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the Owner Trustee,
the Security Insurer nor any such agent will be affected by any notice to the
contrary.

                                      A-5
<PAGE>

      The obligations and responsibilities created by the Trust Agreement and
the Trust created thereby will terminate upon: the later of (i) the maturity or
other liquidation of the last Receivable (including the purchase by the Servicer
at its option of the corpus of the Trust as described in Section 10.1 of the
Sale and Servicing Agreement) and the subsequent distribution of amounts in
respect of such Receivables as provided in the Basic Documents, or (ii) the
payment to the Certificateholders of all amounts required to be paid pursuant to
the Trust Agreement and the payment to the Security Insurer of all amounts
payable or reimbursable to it pursuant to the Sale and Servicing Agreement. The
Servicer may at its option purchase the corpus of the Trust at a price specified
in the Sale and Servicing Agreement, and such purchase of the Receivables and
other property of the Trust will effect early retirement of this Certificate;
however, such right of purchase is exercisable, subject to certain restrictions,
only as of the last day of any Collection Period as of which the Pool Balance is
10% or less of the Original Pool Balance.

      The recitals contained herein will be taken as the statements of the Trust
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
Certificate or of any Receivable or related document.

Unless the certificate of authentication hereon will have been executed by an
authorized officer of the Owner Trustee, by manual or facsimile signature, this
Certificate will not entitle the Holder hereof to any benefit under the Trust
Agreement or the Sale and Servicing Agreement or be valid for any purpose.

                                       A-6
<PAGE>

                                   ASSIGNMENT

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

PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE

________________________________________________________________________________
(Please print or type name and address, including postal zip code, of assignee)

________________________________________________________________________________
the within Certificate, and all rights thereunder, hereby irrevocably
constituting and appointing

______________________________ Attorney to transfer said Certificate on the
books of the Certificate Registrar, with full power of substitution in the
premises.

Dated:                                        ________________________________*
                                              Signature

Guaranteed:                                   ________________________________*

______________________________________

*  NOTICE: The signature to this assignment must correspond with the name of the
   registered owner as it appears on the face of the within Certificate in every
   particular, without alteration, enlargement or any change whatever. Such
   signature must be guaranteed by an "eligible guarantor institution" meeting
   the requirements of the Certificate Registrar, which requirements include
   membership or participation in 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 accordance with the Securities Exchange
   Act of 1934, as amended.

                                      A-7
<PAGE>

                                                                       EXHIBIT B

                              CERTIFICATE OF TRUST
                                       OF
                    TRIAD AUTOMOBILE RECEIVABLES TRUST 2005-A

      THIS Certificate of Trust of Triad Automobile Receivables Trust 2005-A
(the "Trust") is being duly executed and filed by the undersigned, as trustee,
to form a statutory trust under the Delaware Statutory Trust Act (12 Del. C.
Section 3801 et seq.) (the "Act").

      1. Name. The name of the statutory trust formed hereby is "Triad
Automobile Receivables Trust 2005-A."

      2. Delaware Trustee. The name and business address of the trustee of the
Trust in the State of Delaware are 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 shall be effective upon
filing.

      IN WITNESS WHEREOF, the undersigned has duly executed this Certificate of
Trust in accordance with Section 3811(a)(1) of the Act.

                                                     WILMINGTON TRUST COMPANY'
                                                     as trustee

                                                     By:_______________________
                                                     Name:
                                                     Title:

<PAGE>

                                                                       EXHIBIT C

                    [FORM OF "QUALIFIED INSTITUTIONAL BUYER"
                            TRANSFEREE'S CERTIFICATE]

                                     [DATE]

Triad Automobile Receivables Trust 2005-A
c/o Wilmington Trust Company, as Owner Trustee
Rodney Square North
1100 North Market Street
Wilmington, DE  19890-0001
Attention: Corporate Trust Administration

Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19801

Attention: Chief Financial Officer

  Re: Triad Automobile Receivables Trust 2005-A, Trust Certificate No.

Dear Sirs:

      In connection with the proposed purchase by the buyer listed below (the
"Buyer") of the above-referenced Trust Certificate (the "Certificate") issued
pursuant to the Trust Agreement, dated as of May 26, 2005 (the "Trust
Agreement") among Triad Financial Special Purpose LLC, as depositor (the
"Depositor"), Triad Financial Corporation, as administrator (the
"Administrator") and Wilmington Trust Company, as trustee and not in its
individual capacity (the "Owner Trustee"), relating to the Triad Automobile
Receivables Trust 2005 - A Certificate, the Buyer advises you that 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 Certificate for its own account or for the account of another
"qualified institutional buyer." 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 Certificate has 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 Certificate and has received such
information (whether from the Depositor, the transferor from which it proposes
to purchase the Certificate, 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
Issuer 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 notes and
investments in "non-prime" and "sub-prime" automobile loans specifically, that
it is capable of independently evaluating the merits and risks of investment in
the Certificate. In the normal course of its business, the Buyer invests in or
purchases certificates

                                      C-1
<PAGE>

similar to the Certificate. The Buyer is aware that it may be required to bear
the economic risk of an investment in the Certificate 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 Note is to be Registered:

                                      __________________________________________

                                      Address for Notices:
                                      __________________________________________
                                      __________________________________________
                                      __________________________________________

                                      Payment Instructions
                                      __________________________________________
                                      __________________________________________

                                       C-2
<PAGE>

                                                            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 Certificate 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.

_______________________
(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
<PAGE>
      _______ Broker-dealer. The Buyer is a dealer registered pursuant to
              Section 15 of the Securities Exchange Act of 1934.

      _______ 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 Buyer 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, (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 (c) any entity whose underlying
assets include assets of a plan described in (a) or (b) above by reason of such
plan's investment in the entity (including, without limitation, an insurance
company general account).

      4. The term "securities" as used herein does not include (a) securities of
issuers that are affiliated with the Buyer, (b) securities that are part of an
unsold allotment to or subscription by the Buyer, if the Buyer is a dealer, (c)
bank deposit notes and certificates of deposit, (d) loan participations, (e)
repurchase agreements, (f) securities owned but subject to a repurchase
agreement and (g) currency, interest rate and commodity swaps.

      5. 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

                                      C-4
<PAGE>

Buyer and did not include any of the securities referred to in the preceding
paragraph, except (a) where the Buyer reports its securities holdings in its
financial statements on the basis of their market value, and (b) no current
information with respect to the cost of those securities has been published. If
clause (b) 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.

      6. The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the securities
are 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.

      7. Until the date of purchase of the Certificate, 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
<PAGE>

                                                            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, as amended ("Rule 144A"), because the Buyer is part of a Family of
Investment Companies (as defined below), is such an officer of the Buyer.

      2. In connection with purchases by the Buyer, the Buyer is a "qualified
institutional buyer" as defined in Rule 144A because (a) the Buyer is an
investment company registered under the Investment Company Act of 1940, as
amended, and (b) 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 (x) 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 (y) no current information with respect to the
cost of those securities has been published. If clause (y) 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 Buyer 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, (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 (c) any entity whose underlying
assets include assets of a plan described in (a) or (b) above by reason of such
plan's investment in the entity (including, without limitation, an insurance
company general account).

      4. 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

                                      C-6
<PAGE>

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).

      5. The term "securities" as used herein does not include (a) securities of
issuers that are affiliated with the Buyer or are part of the Buyer's Family of
Investment Companies, (b) bank deposit notes and certificates of deposit, (c)
loan participations, (d) repurchase agreements, (e) securities owned but subject
to a repurchase agreement and (f) currency, interest rate and commodity swaps.

      6. 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.

      7. Until the date of purchase of the Certificate, 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<PAGE>

                                                                     EXHIBIT 4.3

                               SALE AND SERVICING
                                    AGREEMENT

                                      among

                   TRIAD AUTOMOBILE RECEIVABLES TRUST 2005-A,
                                     Issuer,

                      TRIAD FINANCIAL SPECIAL PURPOSE LLC,
                                   Depositor,

                          TRIAD FINANCIAL CORPORATION,
                             Servicer and Custodian

                                       and

                           JPMORGAN CHASE BANK, N.A.,
                      Backup Servicer and Indenture Trustee

                            Dated as of May 26, 2005

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                                TABLE OF CONTENTS

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                                                                                                                Page
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ARTICLE I DEFINITIONS........................................................................................     1
         Section 1.1       Definitions.......................................................................     1
         Section 1.2       Other Definitional Provisions.....................................................    17

ARTICLE II CONVEYANCE OF RECEIVABLES.........................................................................    17
         Section 2.1       Conveyance of Receivables.........................................................    17
         Section 2.2       [Reserved]........................................................................    18
         Section 2.3       Further Encumbrance of Trust Property.............................................    18

ARTICLE III THE RECEIVABLES..................................................................................    19
         Section 3.1       Representations and Warranties....................................................    19
         Section 3.2       Repurchase upon Breach of Representations and Warranties..........................    19
         Section 3.3       Custody of Receivables Files......................................................    20

ARTICLE IV ADMINISTRATION AND SERVICING OF RECEIVABLES.......................................................    22
         Section 4.1       Duties of the Servicer............................................................    22
         Section 4.2       Collection of Receivable Payments; Modifications of Receivables; Blocked
                           Account Agreement.................................................................    24
         Section 4.3       Realization upon Receivables......................................................    26
         Section 4.4       Insurance.........................................................................    27
         Section 4.5       Maintenance of Security Interests in Vehicles.....................................    28
         Section 4.6       Covenants, Representations, and Warranties of Servicer............................    29
         Section 4.7       Purchase of Receivables Upon Breach of Covenant...................................    30
         Section 4.8       Total Servicing Fee; Payment of Certain Expenses by Servicer......................    31
         Section 4.9       Servicer's Certificate............................................................    31
         Section 4.10      Annual Statement as to Compliance, Notice of Servicer Termination Event...........    31
         Section 4.11      Annual Independent Accountants' Report............................................    32
         Section 4.12      Access to Certain Documentation and Information Regarding Receivables.............    32
         Section 4.13      Reserved..........................................................................    33
         Section 4.14      Fidelity Bond and Errors and Omissions Policy.....................................    33

ARTICLE V TRUST ACCOUNTS; DISTRIBUTIONS; STATEMENTS TO NOTEHOLDERS...........................................    33
         Section 5.1       Establishment of Trust Accounts...................................................    33
         Section 5.2       [Reserved]........................................................................    35
         Section 5.3       Certain Reimbursements to the Servicer............................................    35
         Section 5.4       Application of Collections........................................................    35
         Section 5.5       Spread Account....................................................................    36
         Section 5.6       Additional Deposits...............................................................    36
         Section 5.7       Distributions.....................................................................    36
         Section 5.8       Note Distribution Account.........................................................    38
         Section 5.9       Reserved..........................................................................    39
         Section 5.10      Statements to Noteholders.........................................................    39
</TABLE>

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<TABLE>
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         Section 5.11      Optional Deposits by the Insurer..................................................    40

ARTICLE VI THE NOTE POLICY...................................................................................    40
         Section 6.1       Claims Under Note Policy..........................................................    40
         Section 6.2       Preference Claims Under Note Policy...............................................    42
         Section 6.3       Surrender of Note Policy..........................................................    44

ARTICLE VII THE DEPOSITOR....................................................................................    44
         Section 7.1       Representations of Depositor......................................................    44
         Section 7.2       Organizational Existence..........................................................    45
         Section 7.3       Liability of Depositor............................................................    45
         Section 7.4       Merger or Consolidation of, or Assumption of the Obligations of, Depositor........    45
         Section 7.5       Limitation on Liability of Depositor and Others...................................    46
         Section 7.6       Ownership of the Certificates or Notes............................................    46

ARTICLE VIII THE SERVICER....................................................................................    46
         Section 8.1       Representations of Servicer.......................................................    46
         Section 8.2       Liability of Servicer; Indemnities................................................    47
         Section 8.3       Merger or Consolidation of, or Assumption of the Obligations of the Servicer
                           or Backup Servicer................................................................    48
         Section 8.4       Limitation on Liability of Servicer, Backup Servicer and Others...................    49
         Section 8.5       Delegation of Duties..............................................................    50
         Section 8.6       Servicer and Backup Servicer Not to Resign........................................    50

ARTICLE IX DEFAULT...........................................................................................    51
         Section 9.1       Servicer Termination Event........................................................    51
         Section 9.2       Consequences of a Servicer Termination Event......................................    52
         Section 9.3       Appointment of Successor..........................................................    53
         Section 9.4       Notification to Noteholders.......................................................    54
         Section 9.5       Waiver of Past Defaults...........................................................    54

ARTICLE X TERMINATION........................................................................................    54
         Section 10.1      Optional Purchase of All Receivables..............................................    54

ARTICLE XI ADMINISTRATIVE DUTIES OF THE SERVICER.............................................................    55
         Section 11.1      Administrative Duties.............................................................    55
         Section 11.2      Records...........................................................................    57
         Section 11.3      Additional Information to be Furnished to the Issuer..............................    57

ARTICLE XII MISCELLANEOUS PROVISIONS.........................................................................    57
         Section 12.1      Amendment.........................................................................    57
         Section 12.2      Protection of Title to Trust......................................................    58
         Section 12.3      Notices...........................................................................    59
         Section 12.4      Assignment........................................................................    61
         Section 12.5      Limitations on Rights of Others...................................................    61
         Section 12.6      Severability......................................................................    61
         Section 12.7      Separate Counterparts.............................................................    61
         Section 12.8      Headings..........................................................................    61
</TABLE>

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<TABLE>
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         Section 12.9      Governing Law.....................................................................    61
         Section 12.10     Assignment to Indenture Trustee...................................................    61
         Section 12.11     Nonpetition Covenants.............................................................    62
         Section 12.12     Limitation of Liability of Owner Trustee and Indenture Trustee....................    62
         Section 12.13     Independence of the Servicer......................................................    62
         Section 12.14     No Joint Venture..................................................................    63
         Section 12.15     Nonpublic Personal Information....................................................    63
</TABLE>

         SCHEDULES

         Schedule A   Schedule of Receivables
         Schedule B   Representations and Warranties
         Schedule C   Servicing Policies and Procedures
         Schedule D   Custodian Third Party Vendors

         EXHIBITS

         Exhibit A    Form of Servicer's Certificate
         Exhibit B    Form of Note Guaranty Insurance Policy

                                       iii

<PAGE>

            SALE AND SERVICING AGREEMENT dated as of May 26, 2005, among TRIAD
AUTOMOBILE RECEIVABLES TRUST 2005-A, a Delaware statutory trust (the "Issuer"),
TRIAD FINANCIAL SPECIAL PURPOSE LLC, a Delaware limited liability company (the
"Depositor"), and TRIAD FINANCIAL CORPORATION, a California corporation
("Triad", in its capacity as Servicer, the "Servicer", and in its capacity as
Custodian, the "Custodian"), and JPMORGAN CHASE BANK, N.A., a national banking
association organized under the laws of the United States, in its capacity as
Backup Servicer and Indenture Trustee (in such capacities, the "Backup Servicer"
and the "Indenture Trustee", respectively).

            The Issuer desires to purchase the Receivables and Other Conveyed
Property;

            The Depositor has purchased the Receivables and Other Conveyed
Property from Triad and is willing to sell the Receivables and Other Conveyed
Property to the Issuer;

            The Servicer is willing to service the Receivables;

            The Custodian is willing to take custody of the Receivable Files.

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

                                    ARTICLE I

                                   Definitions

      Section 1.1 Definitions. Whenever used in this Agreement, the following
words and phrases will have the following meanings:

            "Accounting Date" means, with respect to any Collection Period the
last day of such Collection Period.

            "Additional Funds Available" means, with respect to any Distribution
Date, the sum of: (1) the Spread Account Draw Amount, if any, received by the
Indenture Trustee with respect to the Distribution Date; plus (2) the Insurer
Optional Deposit, if any, received by the Indenture Trustee with respect to the
Distribution Date.

            "Administrative Receivable" means, so long as Triad is the Servicer,
with respect to any Collection Period, a Receivable which the Servicer is
required to purchase pursuant to Section 4.7 on the Determination Date with
respect to such Collection Period.

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

            "Aggregate Principal Balance" means, with respect to any date of
determination, the sum of the Principal Balances for all Receivables (other than
(i) any Receivable that became a Liquidated Receivable prior to the end of the
preceding Collection Period and (ii) any Receivable

<PAGE>

that became a Purchased Receivable prior to the end of the preceding Collection
Period) as of the date of determination.

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

            "Amount Financed" means, with respect to a Receivable, the aggregate
amount advanced under such Receivable toward the purchase price of the Financed
Vehicle and any related costs, including amounts advanced at the time the
Receivable is originated in respect of accessories, insurance premiums, service
contracts, car club and warranty contracts and other items customarily financed
as part of retail automobile installment sale contracts or promissory notes, and
related costs.

            "Attestation Protocol" means, the procedures, standards, guidance,
explanatory materials and exhibits with respect to the conduct of an attestation
program that are set forth in the preface, introduction and exhibits to The
Uniform Single Attestation Program for Mortgage Bankers effective for fiscal
years ended on or after December 15, 1995 or in any successor program, to the
extent such procedures, standards, guidance, explanatory materials and exhibits
are applicable to the servicing obligations set forth herein.

            "Annual Percentage Rate" or "APR" of a Receivable means the annual
percentage rate of finance charges or service charges, as stated in the related
Contract.

            "Auto Loan Purchase and Sale Agreement" means any agreement between
a Third-Party Lender and Triad relating to the acquisition of Receivables from a
Third Party Lender by Triad.

            "Available Funds" means, for any Collection Period, the sum of (1)
the Collected Funds for the Collection Period; plus (2) all Purchase Amounts
deposited in the Collection Account with respect to the Collection Period, plus
income on investments held in the Collection Account, including earnings
transferred to the Collection Account pursuant to Section 5.1(b) hereof; plus
(3) the proceeds of any liquidation of the assets of the Issuer, other than Net
Liquidation Proceeds.

            "Backup Servicer" means JPMorgan Chase Bank, N.A.

            "Base Servicing Fee" means, with respect to any Collection Period,
the fee payable to the Servicer for services rendered during such Collection
Period, which will be equal to one-twelfth of the Servicing Fee Rate multiplied
by the Pool Balance as of the opening of business on the first day of such
Collection Period.

            "Basic Documents" means this Agreement, the Certificate of Trust,
the Trust Agreement, the Purchase Agreement, the Insurance Agreement, the
Indenture, and the other documents and certificates delivered in connection
therewith.

            "Blocked Account Agreement" means the Blocked Account Agreement with
Notice, dated as of April 29, 2005, by and among Triad, the Processing Bank,
Mellon Financial Services Corporation #1, Triad Automobile Receivables Warehouse
Trust and the Indenture Trustee, as such agreement may be amended or
supplemented from time to time, unless the Indenture Trustee will cease to be a
party thereunder, or such agreement will be terminated in accordance with its
terms, in which event "Blocked Account Agreement" will mean such other
agreement, in form and substance

                                       2

<PAGE>

acceptable to the Controlling Party, among the Servicer, the Indenture Trustee
and the Processing Bank.

            "Business Day" means a day other than a Saturday, a Sunday or other
day on which commercial banks located in the states of Delaware, California, or
New York are authorized or obligated to be closed.

            "Certificate" means the trust certificate evidencing the beneficial
interest of the Certificateholder in the Trust.

            "Certificateholders" means the Persons in whose name the
Certificates are registered.

            "Class" means the Class A-1 Notes, the Class A-2 Notes, the Class
A-3 Notes or the Class A-4 Notes, as the context requires.

            "Class A Notes" means, collectively, the Class A-1 Notes, the Class
A-2 Notes, the Class A-3 Notes and the Class A-4 Notes.

            "Class A Noteholders" means holders of the Class A Notes.

            "Class A Noteholders' Accelerated Principal Amount" means, for any
Distribution Date, the lesser of: (1) the sum of (a) the excess, if any, of the
amount of Available Funds on the Distribution Date over the amounts payable on
the Distribution Date under clauses (i) through (x) of Section 5.7(a); plus, (b)
the amounts, if any, on deposit in the Spread Account in excess of the Spread
Account Requirement for the Distribution Date; and (2) the excess, if any, on
the Distribution Date of (a) the Pro Forma Class A Note Balance for the
Distribution Date; over (b) the Required Pro Forma Class A Note Balance for the
Distribution Date.

            "Class A Noteholders' Interest Distributable Amount" means, for any
Distribution Date, the sum of the Class A Noteholders' Monthly Interest
Distributable Amount for each Class of Class A Notes for such Distribution Date
and the Class A Noteholders' Interest Carryover Amount, if any, for each Class
of Class A Notes, calculated as of such Distribution Date.

            "Class A Noteholders' Interest Carryover Amount" means, for any
Class of Class A Notes and any Determination Date, all or any portion of the
Class A Noteholders' Interest Distributable Amount for the Class for the
immediately preceding Distribution Date still unpaid as of the Determination
Date, plus, to the extent permitted by law, interest on the unpaid amount at the
interest rate paid on the Class of Notes from the preceding Distribution Date to
but excluding the related Distribution Date.

            "Class A Noteholders' Monthly Interest Distributable Amount" means,
for any Distribution Date and any Class of Class A Notes, the interest accrued
at the applicable Interest Rates during the applicable Interest Period on the
principal amount of the Notes of each Class of the Class A Notes outstanding as
of the end of the prior Distribution Date or, in the case of the first
Distribution Date, as of the Closing Date.

            "Class A Noteholders' Monthly Principal Distributable Amount" means,
with respect to any Distribution Date, the amount, which will not be less than
zero, equal to the excess, if any, of (x) the sum of (i) the principal portion
of all Collected Funds received during the immediately preceding Collection
Period (other than with respect to Liquidated Receivables), including any full

                                       3

<PAGE>

and partial principal prepayments during such Collection Period, (ii) the
Principal Balance of all Receivables that became Liquidated Receivables during
the related Collection Period (other than Purchased Receivables), (iii) the
principal portion of any Purchase Amounts received with respect to all
Receivables that became Purchased Receivables during the related Collection
Period, (iv) in the sole discretion of the Insurer, the Principal Balance of all
the Receivables that were required to be purchased pursuant to Sections 3.2 and
4.7, during such Collection Period but were not purchased, (v) the aggregate
amount of Cram Down Losses that occurred during the related Collection Period,
and (vi) if the Notes have been accelerated pursuant to Section 5.2 of the
Indenture, the amount of money or property collected in respect of principal
collections pursuant to Section 5.4 of the Indenture following such acceleration
by the Indenture Trustee or Controlling Party to the extent not used to pay
interest to the Class A Notes pursuant to Section 5.6 of the Indenture over (y)
the sum of the Step-Down Amount, if any, for such Distribution Date and amounts
distributed under Section 5.7(a)(iv), if any, for such Distribution Date.

            "Class A Noteholders' Parity Deficit Amount" means, for any
Distribution Date, the excess, if any, of (1) the aggregate remaining principal
amount of the Class A Notes outstanding on the Distribution Date after giving
effect to all reductions in such aggregate principal amount from sources other
than the Note Policy over (2) the Pool Balance at the end of the prior
Collection Period.

            "Class A Noteholders' Principal Carryover Amount" means, as of any
Determination Date, all or any portion of the Class A Noteholders' Principal
Distributable Amount from the immediately preceding Distribution Date that
remains unpaid.

            "Class A Noteholders' Principal Distributable Amount" means, for any
Distribution Date, the sum of the Class A Noteholders' Monthly Principal
Distributable Amount for the Distribution Date and the Class A Noteholders'
Principal Carryover Amount, if any, as of the Distribution Date.

            "Class A-1 Notes" has the meaning assigned to such term in the
Indenture.

            "Class A-2 Notes" has the meaning assigned to such term in the
Indenture.

            "Class A-3 Notes" has the meaning assigned to such term in the
Indenture.

            "Class A-4 Notes" has the meaning assigned to such term in the
Indenture.

            "Closing Date" means May 26, 2005.

            "Collateral Insurance" has the meaning set forth in Section 4.4(a).

            "Collected Funds" means, with respect to any Collection Period, the
amount of funds in the Collection Account representing collections on the
Receivables (other than Purchased Receivables) during such Collection Period,
including all Net Liquidation Proceeds collected during such Collection Period
(but excluding any Purchase Amounts).

            "Collection Account" means the account designated as such,
established and maintained pursuant to Section 5.1.

            "Collection Period" means, with respect to the first Distribution
Date, the period beginning on the close of business on April 30, 2005 and ending
on the close of business on May 31,

                                       4

<PAGE>

2005. With respect to each subsequent Distribution Date, "Collection Period"
means the period beginning on the open of business on the first day of the
immediately preceding calendar month and ending on the close of business on the
last day of the immediately preceding calendar month. Any amount stated "as of
the close of business of the last day of a Collection Period" will give effect
to the following calculations as determined as of the end of the day on such
last day: (i) all applications of collections and (ii) all distributions.

            "Collection Records" means all manually prepared or computer
generated records relating to collection efforts or payment histories with
respect to the Receivables.

            "Computer Tape" means the computer tapes or other electronic media
furnished by Triad to the Issuer and its assigns describing certain
characteristics of the Receivables as of the Cutoff Date.

            "Contract" means a motor vehicle retail installment sale contract,
installment loan contract or note and security agreement.

            "Controlling Party" means the Insurer, provided that if (i) an
Insurer Default has occurred and is continuing or (ii) all amounts payable to
the Class A Noteholders under the Indenture and the Insurer under the Insurance
Agreement have been paid in full, then the Controlling Party means the Indenture
Trustee acting at the direction of the Majority Noteholders.

            "Copies" has the meaning set forth in Section 3.3(c).

            "Corporate Trust Office" means (i) with respect to the Owner
Trustee, the principal corporate trust office of the Owner Trustee, which at the
time of execution of this agreement is Wilmington Trust Company, is Rodney
Square North, 1100 N. Market Street, Wilmington, Delaware 19890, and (ii) with
respect to the Indenture Trustee and the Backup Servicer, the principal office
at which at any particular time its corporate trust business is administered,
which at the time of execution of this agreement is 4 New York Plaza, 6th Floor,
New York, New York 10004-2477, Attention: Worldwide Securities Services - Global
Debt - Triad 2005-A.

            "Cram Down Loss" means, for any Receivable (other than a Purchased
Receivable or a Liquidated Receivable), if a court of appropriate jurisdiction
in an insolvency proceeding issued an order reducing the amount owed on the
Receivable or otherwise modifying or restructuring the scheduled payments to be
made on the Receivable, an amount equal to the excess of the Receivable's
Principal Balance immediately prior to the order over the Receivable's Principal
Balance as reduced.

            "Cumulative Net Losses" means with respect to any Determination
Date, the aggregate principal balance of all Net Liquidation Losses for each
Collection Period from the Closing Date to and including the last day of the
related Collection Period.

            "Cumulative Net Loss Ratio" means, with respect to any Determination
Date, the ratio, expressed as a percentage, computed by dividing (i) Cumulative
Net Losses as of such Determination Date by (ii) the Original Pool Balance.

            "Cumulative Net Loss Trigger Event" means, with respect to any
Determination Date, the Cumulative Net Loss Ratio with respect to such
Determination Date exceeds the amounts set forth below:

                                       5

<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE OCCURRING IN:                                              PERCENTAGE:
-------------------------------                                              -----------
<S>                                                                          <C>
June 2005 through August 2005.............................................      1.56%
September 2005 through November 2005......................................      3.12%
December 2005 through February 2006.......................................      4.68%
March 2006 through May 2006...............................................      6.24%
June 2006 through August 2006.............................................      8.06%
September 2006 through November 2006......................................      9.88%
December 2006 through February 2007.......................................     11.70%
March 2007 through May 2007...............................................     13.52%
June 2007 through August 2007.............................................     15.08%
September 2007 through November 2007......................................     16.64%
December 2007 through February 2008.......................................     18.20%
March 2008 through May 2008...............................................     19.76%
June 2008 and thereafter..................................................     20.00%
</TABLE>

            "Custodian" means Triad as custodian hereunder acting as agent for
the Indenture Trustee, or any other Person named from time to time as custodian
hereunder, which Person must be reasonably acceptable to the Controlling Party
(the Custodian as of the Closing Date is acceptable to the Insurer as of the
Closing Date).

            "Cutoff Date" means April 30, 2005.

            "Dealer" means a dealer who sold a Financed Vehicle and who
originated and assigned the respective Receivable to Triad under a Dealer
Agreement or pursuant to a Dealer Assignment.

            "Dealer Agreement" means any agreement between a Dealer and Triad
relating to the acquisition of Receivables from the Dealer by Triad.

            "Dealer Assignment" means, with respect to a Receivable, the
executed assignment executed by the Dealer conveying such Receivable to Triad.

            "Delinquency Rate" means, with respect to any Determination Date, a
fraction, expressed as a percentage, (a) the numerator of which is equal to the
Aggregate Principal Balance of all Receivables, other than Liquidated
Receivables, for which 10% or more of a Scheduled Receivables Payment was 60 or
more days delinquent as of the last day of the related Collection Period and (b)
the denominator of which is equal to the Aggregate Principal Balance as of the
last day of the related Collection Period.

            "Depositor" means Triad Financial Special Purpose LLC, a Delaware
limited liability company.

            "Determination Date" means, with respect to any Collection Period,
the third Business Day preceding the Distribution Date in the next Collection
Period.

            "Distribution Date" means, with respect to each Collection Period,
the 12th day of the following Collection Period, or, if such day is not a
Business Day, the immediately following Business Day, commencing June 13, 2005.

                                       6

<PAGE>

            "Electronic Ledger" means the electronic master record of the motor
vehicle retail installment sale contracts, installment loan contracts and note
and security agreements of the Servicer.

            "Eligible Deposit Account" means a segregated trust account with the
corporate trust department of a depository institution acceptable to the Insurer
organized under the laws of the United States of America or any one of the
states thereof or the District of Columbia (or any domestic branch of a foreign
bank), having corporate trust powers and acting as trustee for funds deposited
in such account, so long as any of the securities of such depository institution
and its corporate parent have a credit rating from each Rating Agency in one of
its generic rating categories which signifies investment grade and a rating of
at least A-1 by Standard & Poor's and/or P-1 by Moody's.

            "Eligible Investments" mean book-entry securities, negotiable
instruments or securities, in each case denominated in United States dollars,
represented by instruments in bearer or registered form which evidence:

            (a) direct obligations of, and obligations fully guaranteed as to
      timely payment by, the United States of America;

            (b) demand deposits, time deposits or certificates of deposit of any
      depository institution or trust company incorporated under the laws of the
      United States of America or any state thereof or the District of Columbia
      (or any domestic branch of a foreign bank) and subject to supervision and
      examination by federal or state banking or depository institution
      authorities (including depository receipts issued by any such institution
      or trust company as custodian with respect to any obligation referred to
      in clause (a) above or portion of such obligation for the benefit of the
      holders of such depository receipts); provided, however, that at the time
      of the investment or contractual commitment to invest therein (which will
      be deemed to be made again each time funds are reinvested following each
      Distribution Date), the commercial paper or other short-term senior
      unsecured debt obligations (other than such obligations the rating of
      which is based on the credit of a Person other than such depository
      institution or trust company) of such depository institution or trust
      company will have a credit rating from Standard & Poor's of A-1+ and from
      Moody's of P-1;

            (c) commercial paper and demand notes investing solely in commercial
      paper having, at the time of the investment or contractual commitment to
      invest therein, a rating from Standard & Poor's of A-1+ and from Moody's
      of P-1;

            (d) investments in money market funds (including funds for which the
      Indenture Trustee or the Owner Trustee in each of their individual
      capacities or any of their respective Affiliates is investment manager,
      controlling party or advisor) having a rating from Standard & Poor's of
      AAA and from Moody's of Aaa;

            (e) bankers' acceptances issued by any depository institution or
      trust company referred to in clause (b) above;

            (f) repurchase obligations with respect to any security that is a
      direct obligation of, or fully guaranteed by, the United States of America
      or any agency or instrumentality thereof the obligations of which are
      backed by the full faith and credit of the United States of

                                       7

<PAGE>

      America, in either case entered into with a depository institution or
      trust company (acting as principal) referred to in clause (b) above;

            (g) any other investment which would satisfy the Rating Agency
      Condition and is consistent with the ratings of the Securities and which,
      so long as no Insurer Default has occurred and is continuing, has been
      approved by the Insurer, or any other investment that by its terms
      converts to cash within a finite period, if the Rating Agency Condition is
      satisfied with respect thereto; and

            (h) cash.

            Any of the foregoing Eligible Investments may be purchased by or
through the Owner Trustee or the Indenture Trustee or any of their respective
Affiliates. None of the Eligible Investments may have an "r" subscript as part
of its S&P rating. Each of the Eligible Investments must have a predetermined
fixed dollar amount that is due at maturity.

            "Eligible Servicer" means, Triad Financial Corporation, as Servicer,
JPMorgan Chase Bank, N.A., as Backup Servicer, or another Person which at the
time of its appointment as Servicer or Backup Servicer, (i) is servicing a
portfolio of motor vehicle retail installment sale contracts and/or motor
vehicle installment loan contracts, (ii) is legally qualified and has the
capacity to service the Receivables, (iii) has demonstrated the ability
professionally and competently to service a portfolio of motor vehicle retail
installment sale contracts and/or motor vehicle installment loan contracts
similar to the Receivables with reasonable skill and care, (iv) is qualified and
entitled to use, pursuant to a license or other written agreement, and agrees to
maintain the confidentiality of, the software which the Servicer uses in
connection with performing its duties and responsibilities under this Agreement
or otherwise has available software which is adequate to perform its duties and
responsibilities under this Agreement, and (v) so long as no Insurer Default has
occurred and is continuing, is reasonably acceptable to the Insurer.

            "FDIC" means the Federal Deposit Insurance Corporation.

            "Final Scheduled Distribution Date" means with respect to (i) the
Class A-1 Notes, the June 2006 Distribution Date, (ii) the Class A-2 Notes, the
January 2009 Distribution Date, (iii) the Class A-3 Notes, the March 2010
Distribution Date and (iv) the Class A-4 Notes, the June 2012 Distribution Date.

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

            "Indenture" means the Indenture dated as of May 26, 2005, between
the Issuer and JPMorgan Chase Bank, N.A., as Indenture Trustee, as the same may
be amended and supplemented from time to time.

            "Indenture Trustee" means JPMorgan Chase Bank, N.A., its successors
in interest and any successor trustee hereunder and under the Indenture.

            "Indenture Trustee Fee" means, with respect to any Collection
Period, the fee payable to the Indenture Trustee for services rendered during
such Collection Period, which will be equal to $250.

                                       8

<PAGE>

            "Independent Accountants" has the meaning set forth in Section 4.11.

            "Insolvency Event" means, with respect to a specified Person, (a)
the filing of a petition against such Person or the entry of a decree or order
for relief by a court having jurisdiction in the premises in respect of such
Person or any substantial part of its 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 for such Person or for any
substantial part of its property, or ordering the winding-up or liquidation or
such Person's affairs, and such petition, decree or order will remain unstayed
and in effect for a period of 60 consecutive days; or (b) the commencement by
such Person 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 such Person to the entry of an order for relief in an involuntary
case under any such law, or the consent by such Person to the appointment of or
taking possession by, a receiver, liquidator, assignee, custodian, trustee,
sequestrator, or similar official for such Person or for any substantial part of
its property, or the making by such Person of any general assignment for the
benefit of creditors, or the failure by such Person generally to pay its debts
as such debts become due, or the taking of action by such Person in furtherance
of any of the foregoing.

            "Insolvency Proceeds" has the meaning set forth in Section 10.1(b).

            "Insurance Agreement" means the Insurance and Indemnity Agreement,
dated as of May 26, 2005, among the Insurer, the Trust, the Depositor, Triad and
the Indenture Trustee.

            "Insurance Agreement Event of Default" means an "Event of Default"
as defined in the Insurance Agreement.

            "Insurance Policy" means, with respect to a Receivable, any
insurance policy (including the insurance policies described in Section 4.4)
benefiting the holder of the Receivable providing loss or physical damage,
credit life, credit disability, theft, mechanical breakdown or similar coverage
with respect to the Financed Vehicle or the Obligor.

            "Insured Payment" has the meaning set forth in the Note Policy.

            "Insurer" means Ambac Assurance Corporation, a Wisconsin-domiciled
stock insurance corporation incorporated under the laws of the State of
Wisconsin, or any successor thereto, as issuer of the Note Policy.

            "Insurer Default" means the occurrence and continuance of any of the
following events:

            (a) the Insurer failing to make a payment required under the Note
      Policy in accordance with its terms;

            (b) the Insurer (i) filing a petition or commencing any case or
      proceeding under any provision or chapter of the United States Bankruptcy
      Code or any other similar federal or state law relating to insolvency,
      bankruptcy, rehabilitation, liquidation or reorganization, (ii) making a
      general assignment for the benefit of its creditors, or (iii) having an
      order for relief entered against it under the United States Bankruptcy
      Code or any other similar federal or

                                       9

<PAGE>

      state law relating to insolvency, bankruptcy, rehabilitation, liquidation
      or reorganization which is final and nonappealable; or

            (c) a court of competent jurisdiction, the Wisconsin Department of
      Insurance or other competent regulatory authority has entered a final and
      nonappealable order, judgment or decree (i) appointing a custodian,
      trustee, agent or receiver for the Insurer or for all or any material
      portion of its property or (ii) authorizing the taking of possession of
      all or any material portion of the property of the Insurer by a custodian,
      trustee, agent or receiver.

            "Insurer Optional Deposit" means, for any Distribution Date, an
amount other than an Insured Payment delivered by the Insurer, at its sole
option, for deposit into the Collection Account for any of the following
purposes: to provide funds to pay the fees or expenses of any of the Issuer's
service providers for the Distribution Date; or to include those amounts as part
of Additional Funds Available for the Distribution Date to the extent that
without them a draw would be required to be made on the Note Policy.

            "Interest Period" means, with respect to any Distribution Date, (i)
with respect to the Class A-1 Notes, the period from and including the preceding
Distribution Date (or in the case of the first Distribution Date, from and
including the Closing Date) to, but excluding, such Distribution Date and (ii)
with respect to the Class A-2 Notes, the Class A-3 Notes and the Class A-4
Notes, the period from and including the 12th day of the prior calendar month
(or in the case of the first Distribution Date, from and including the Closing
Date) to, but excluding, the 12th day of the calendar month in which such
Distribution Date occurs.

            "Interest Rate" means, with respect to (i) the Class A-1 Notes,
3.30% per annum, (ii) the Class A-2 Notes, 3.79% per annum, (iii) the Class A-3
Notes, 4.05% per annum, and (vi) the Class A-4 Notes, 4.22% per annum (in the
case of the Class A-1 Notes, computed on the basis of a 360 day year and the
actual number of days in the related Interest Period and in the case of the
Class A-2 Notes, Class A-3 Notes and Class A-4 Notes computed on the basis of a
360-day year consisting of twelve 30-day months).

            "Investment Earnings" means, with respect to any date of
determination and Trust Account, the investment earnings on amounts on deposit
in such Trust Account on such date.

            "Issuer" means Triad Automobile Receivables Trust 2005-A, a Delaware
statutory trust.

            "Lien" means a security interest, lien, charge, pledge, equity, or
encumbrance of any kind, other than tax liens, mechanics' liens and any liens
that attach to the respective Receivable by operation of law as a result of any
act or omission by the related Obligor.

            "Lien Certificate" means, with respect to a Financed Vehicle, an
original certificate of title, certificate of lien or other notification issued
by the Registrar of Titles of the applicable state to a secured party which
indicates that the lien of the secured party on the Financed Vehicle is recorded
on the original certificate of title. In any jurisdiction in which the original
certificate of title is required to be given to the Obligor, the term "Lien
Certificate" will mean only a certificate or notification issued to a secured
party.

                                       10

<PAGE>

            "Liquidated Receivable" means, with respect to any Collection
Period, any Receivable with respect to which any of the following has occurred:
(i) 10% or more of any Scheduled Receivable Payment is 120 days or more past
due, except Receivables with respect to which the related Financed Vehicle has
been repossessed within such 120 days; (ii) the earlier of (A) 90 days have
elapsed since the Servicer repossessed the Financed Vehicle and (B) the sale of
the related Financed Vehicle; or (iii) the Servicer has determined in good faith
that it has received all amounts it expects to recover.

            "Lockbox Account" means an account maintained by the Processing Bank
pursuant to Section 4.2(d).

            "Majority Noteholders" has the meaning set forth in the Indenture.

            "Minimum Servicing Standards" means servicing standards identified
as "Minimum Servicing Standards" in The Uniform Single Attestation Program for
Mortgage Bankers effective for fiscal years ended on or after December 15, 1995
or in any successor program, to the extent such standards are applicable to the
servicing obligations set forth herein.

            "Monthly Extension Rate" means, with respect to any Accounting Date,
the fraction, expressed as a percentage, the numerator of which is the aggregate
Principal Balance of Receivables whose payments were extended during the related
Collection Period and the denominator of which is the Aggregate Principal
Balance as of the immediately preceding Accounting Date.

            "Monthly Records" means all records and data maintained by the
Servicer with respect to the Receivables, including the following with respect
to each Receivable: the account number; the originating Dealer; Obligor name;
Obligor address; Obligor home phone number; Obligor business phone number, if
any; original Principal Balance; original term; Annual Percentage Rate; current
Principal Balance; current remaining term; origination date; first payment date;
final scheduled payment date; next payment due date; new/used classification;
collateral description; days currently delinquent; number of contract extensions
(months) to date; amount of Scheduled Receivables Payment; and past due late
charges.

            "Moody's" means Moody's Investors Service, Inc., or its successor.

            "Net Liquidation Losses" means, with respect to any Determination
Date, the amount, if any, by which (a) the sum of (i) the Principal Balance of
all Receivables which became Liquidated Receivables during the related
Collection Period, and (ii) the aggregate of all Cram Down Losses that occurred
during such Collection Period, exceeds (b) the Net Liquidation Proceeds received
during the related Collection Period in respect of all Liquidated Receivables.

            "Net Liquidation Proceeds" means, with respect to a Liquidated
Receivable, (1) proceeds from the disposition of the underlying Financed
Vehicle; plus (2) any related insurance proceeds; plus (3) other monies received
from the Obligor that are allocable to principal and interest due under the
Receivable; minus (4) the Servicer's reasonable out-of-pocket costs, including
repossession and resale expenses not already deducted from the proceeds, and any
amounts required to be remitted to the Obligor by law.

            "Net Loss Rate" means, with respect to a Collection Period, the
fraction, expressed as a percentage, the numerator of which is equal to the
aggregate of the Net Liquidation Losses for such

                                       11

<PAGE>

Collection Period and the denominator of which is the Aggregate Principal
Balance as of the first day of such Collection Period.

            "Note Distribution Account" means the account designated as such,
established and maintained pursuant to Section 5.1.

            "Note Policy" means the financial guaranty insurance policy issued
by the Insurer to the Indenture Trustee for the benefit of the Class A
Noteholders.

            "Note Pool Factor" means, for each Class of Notes as of the close of
business on any date of determination, a seven-digit decimal figure equal to the
outstanding principal amount of such Class of Notes divided by the original
principal amount of such Class of Notes.

            "Note Preference Claim" has the meaning set forth in Section 6.2(b).

            "Noteholders" means the holders of the Class A Notes.

            "Notes" means the Class A Notes.

            "Obligor" on a Receivable means the purchaser or co-purchaser(s) of
a Financed Vehicle and any other Person who owes payments under the Receivable.

            "Officer's Certificate" means a certificate signed by the chairman
of the board, the president, any executive vice president or any vice president,
any treasurer, assistant treasurer, secretary or assistant secretary of the
Servicer, as appropriate.

            "Opinion of Counsel" means a written opinion of counsel reasonably
acceptable to the Insurer, which opinion is satisfactory in form and substance
to the Indenture Trustee and, if such opinion or a copy thereof is required by
the provisions of this Agreement to be delivered to the Insurer, to the Insurer.

            "Original Pool Balance" means, as of any date of determination,
$1,200,000,000.18 (which is the Pool Balance as of the Cutoff Date).

            "Originator" means Triad.

            "Other Conveyed Property" means all property conveyed by the
Depositor to the Trust pursuant to Section 2.1(b) through (h).

            "Overcollateralization Target Percentage" means (a) 13.5%; provided
that, if no Spread Cap Event (as defined in the Insurance Agreement) and no
Insurance Agreement Event of Default shall have occurred on the 18th
Distribution Date, the Overcollateralization Target Percentage shall decline to
12.5%, beginning on such Distribution Date; provided further that, if no Spread
Cap Event (as defined in the Insurance Agreement) and no Insurance Agreement
Event of Default shall have occurred on the 24th Distribution Date, the
Overcollateralization Target Percentage shall decline to 11.5%, beginning on
such Distribution Date; and provided further that, if no Spread Cap Event (as
defined in the Insurance Agreement) and no Insurance Agreement Event of Default
shall have occurred on the 30th Distribution Date, the Overcollateralization
Target Percentage shall decline to 10.5%, beginning on such Distribution Date.

                                       12

<PAGE>

            "Owner Trust Estate" has the meaning assigned to such term in the
Trust Agreement.

            "Owner Trustee" means Wilmington Trust Company, not in its
individual capacity but solely as Owner Trustee under the Trust Agreement, its
successors in interest or any successor Owner Trustee under the Trust Agreement.

            "Owner Trustee Fee" means with respect to any Collection Period, the
fee payable to the Owner Trustee for services rendered during such Collection
Period, which will be equal to $250.

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

            "Policy Claim Amount" has the meaning set forth in the Note Policy.

            "Pool Balance" means, as of any date of determination, the Aggregate
Principal Balance at the end of the preceding Collection Period.

            "Preference Amount" has the meaning set forth in the Note Policy.

            "Premium" means the premium payable to the Insurer, as specified in
the Insurance Agreement.

            "Principal Balance" means, for any Receivable as of any date of
determination, (i) the Amount Financed; minus (ii) the sum of (a) that portion
of all amounts received on or prior to that date and allocable to principal
according to the Receivable's terms, and (b) any Cram Down Losses for the
Receivable accounted for as of that date.

            "Processing Bank" means, initially, Mellon Bank, N.A. and its
successors in interest, and thereafter a depository institution named by the
Servicer and approved by the Insurer (so long as no Insurer Default has occurred
and is continuing) which provides a lockbox as part of its normal and customary
services at which the Lockbox Account is established and maintained as of such
date; provided, however, that upon the occurrence of a Servicer Termination
Event, the Controlling Party may, in its sole discretion, cause the Lockbox
Account to be established at another bank.

            "Pro Forma Class A Note Balance" means, for any Distribution Date,
the aggregate remaining principal amount of the Class A Notes outstanding on the
Distribution Date, after giving effect to distributions to be made on such
Distribution Date under clauses (i) through (x) of Section 5.7(a).

            "Purchase Agreement" means the Purchase Agreement between the
Depositor and Triad, dated as of May 26, 2005, as such Purchase Agreement may be
amended from time to time.

            "Purchase Amount" means, with respect to a Receivable, the sum of
(i) the Principal Balance as of the date of purchase and (ii) an amount of
interest accrued thereon at the related Annual Percentage Rate from the end of
the prior Collection Period through the last day of the month of purchase.

            "Purchased Receivable" means, with respect to any Collection Period,
a Receivable purchased as of the close of business on the last day of the
Collection Period by Triad or the Servicer

                                       13

<PAGE>

so long as JPMorgan Chase Bank, N.A. is not acting as Servicer, as the result of
a breach of a covenant or as an exercise of its optional redemption right.

            "Rating Agency" means Moody's and Standard & Poor's. If no such
organization or successor maintains a rating on the Securities, "Rating Agency"
will mean a nationally recognized statistical rating organization or other
comparable Person designated by the Issuer and reasonably acceptable to the
Insurer (so long as no Insurer Default has occurred and is continuing), notice
of which designation will be given by the Issuer to the Indenture Trustee, the
Owner Trustee and the Servicer.

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

            "Receivable" means any Contract listed on Schedule A (which Schedule
may be in the form of microfiche or a disk).

            "Receivable Files" means the documents specified in Section 3.3.

            "Record Date" has the meaning set forth in the Indenture.

            "Registrar of Titles" means, with respect to any state, the
governmental agency or body responsible for the registration of, and the
issuance of certificates of title relating to, motor vehicles and liens thereon.

            "Required Pro Forma Class A Note Balance" means, with respect to any
Distribution Date, a dollar amount equal to the product of (1) the difference
between (a) 100% and (b) the Overcollateralization Target Percentage for that
Distribution Date and (2) the Pool Balance as of the end of the prior Collection
Period.

            "Schedule of Receivables" means the schedule of all motor vehicle
retail installment sale contracts, installment loan contracts and note and
security agreements originally held as part of the Trust which is attached as
Schedule A.

            "Schedule of Representations" means the Schedule of Representations
and Warranties attached as Schedule B.

            "Scheduled Receivables Payment" means, with respect to any
Collection Period for any Receivable, the amount set forth in the Receivable as
required to be paid by the Obligor in the Collection Period. If, after the
Closing Date, the Obligor's obligation under a Receivable with respect to a
Collection Period is modified so as to differ from the amount specified in the
Receivable as a result of (i) the order of a court in an insolvency proceeding
involving the Obligor, (ii) pursuant to the Servicemembers Civil Relief Act or
(iii) modifications or extensions of the Receivable permitted by Section 4.2(b),
the Scheduled Receivables Payment with respect to such Collection Period will
refer to the Obligor's payment obligation with respect to the Collection Period
as so modified.

            "Securities" means, collectively, the Class A Notes and the
Certificates.

                                       14

<PAGE>

            "Service Contract" means, with respect to a Financed Vehicle, the
agreement, if any, financed under the related Receivable that provides for the
repair of the Financed Vehicle.

            "Servicer" means Triad as the servicer of the Receivables, and each
successor Servicer pursuant to Section 9.3.

            "Servicer Termination Event" means an event specified in Section
9.1.

            "Servicer's Certificate" means an Officer's Certificate delivered
pursuant to Section 4.9, substantially in the form of Exhibit A.

            "Servicing Fee" has the meaning specified in Section 4.8.

            "Servicing Fee Rate" means 2.25% per annum.

            "Simple Interest Method" means the method of allocating a fixed
level payment on an obligation between principal and interest, pursuant to which
the portion of the payment that is allocated to interest is equal to the product
of the fixed rate of interest on the obligation multiplied by the period of time
expressed as a fraction of a year, based on the actual number of days elapsed
since the preceding payment under the obligation was made and 365 days in the
calendar year.

            "Spread Account" means the account designated as such, established
and maintained pursuant to Section 5.5.

            "Spread Account Draw Amount" means, for any Determination Date, the
amount, after taking into account the application on the Distribution Date of
Available Funds for the related Collection Period, equal to any shortfall in the
payment of amounts described in clauses (i) through (vi) of Section 5.7(a).

            "Spread Account Initial Deposit" means $24,000,000.

            "Spread Account Requirement" means, with respect to the Closing Date
and for any Distribution Date, a dollar amount equal to: the Spread Account
Initial Deposit or, if a Spread Cap Event (as such term is defined in the
Insurance Agreement) has occurred and is continuing, 3.00% of the Original Pool
Balance.

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

            "Statutory Trust Statute" means Chapter 38 of Title 12 of the
Delaware Code, 12 Del. Code Section 3801 et seq., as the same may be amended
from time to time.

            "Step-Down Amount" means, with respect to any Distribution Date, the
excess, if any, of (x) the Required Pro Forma Class A Note Balance over (y) the
Pro Forma Class A Note Balance on such Distribution Date, calculated for this
definition only without deduction for any Step-Down Amount (i.e., assuming that
the entire amount described in clause (x) of the definition of "Class A
Noteholders' Monthly Principal Distributable Amount" is distributed as principal
on the Class A Notes).

                                       15

<PAGE>

            "Supplemental Servicing Fee" means, with respect to any Collection
Period, all administrative fees, expenses and charges paid by or on behalf of
Obligors, including late fees, prepayment fees, extension fees and liquidation
fees collected on the Receivables during the Collection Period and any expenses
incurred by the Servicer in connection with repossession and liquidation of the
Financed Vehicle.

            "Third-Party Lender" means an entity that originated a loan to a
consumer or was the original assignee of a motor vehicle retail installment sale
contract from a dealer for the purchase of a motor vehicle and sold the loan or
motor vehicle retail installment sale contract to Triad pursuant to an Auto Loan
Purchase and Sale Agreement.

            "Third-Party Lender Assignment" means, with respect to a Receivable,
the assignment executed by a Third-Party Lender conveying the Receivable to
Triad.

            "Triad" means Triad Financial Corporation, a California corporation,
and its successors and assigns.

            "Trust" means the Issuer.

            "Trust Account Property" means the Trust Accounts, all amounts and
investments held from time to time in any Trust Account (whether in the form of
deposit accounts, physical property, book-entry securities, uncertificated
securities or otherwise), and all proceeds of the foregoing.

            "Trust Accounts" has the meaning assigned thereto in Section 5.1.

            "Trust Agreement" means the Trust Agreement dated as of April 15,
2005 among Triad, as the Administrator, the Depositor and the Owner Trustee, as
amended and restated as of May 26, 2005 as the same may be amended and
supplemented from time to time.

            "Trust Officer" means, (i) in the case of the Indenture Trustee, the
chairman or vice-chairman of the board of directors, any managing director, the
chairman or vice-chairman of the executive committee of the board of directors,
the president, any vice president, assistant vice president, the secretary, any
assistant secretary, the treasurer, any assistant treasurer, the cashier, any
assistant cashier, any trust officer or assistant trust officer, the controller
and any assistant controller or any other officer of the Indenture Trustee
customarily performing functions similar to those performed by any of the above
designated officers and also means, with respect to a particular corporate trust
matter, any other officer to whom such matter is referred because of such
officer's knowledge of and familiarity with the particular subject, and (ii) in
the case of the Owner Trustee, any officer in the corporate trust office of the
Owner Trustee or any agent of the Owner Trustee under a power of attorney with
direct responsibility for the administration of any of the Basic Documents on
behalf of the Owner Trustee.

            "Trust Property" means all right, title and interest of the Trust in
and to the property and rights assigned to the Trust pursuant to Section 2.1
hereof, all funds on deposit from time to time in the Trust Accounts (including
all Eligible Investments therein and all proceeds therefrom) and all other
property of the Trust from time to time, including any rights of the Owner
Trustee and the Trust under this Agreement.

                                       16

<PAGE>

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

      Section 1.2 Other Definitional Provisions.

            (a) Capitalized terms used herein and not otherwise defined herein
      have the meanings assigned to them in the Indenture, or, if not defined
      therein, in the Trust Agreement.

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

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

            (d) The words "hereof," "herein," "hereunder" and words of similar
      import when used in this Agreement will refer to this Agreement as a whole
      and not to any particular provision of this Agreement; Section, Schedule
      and Exhibit references contained in this Agreement are references to
      Sections, Schedules and Exhibits in or to this Agreement unless otherwise
      specified; and the term "including" means "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.

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

                                   ARTICLE II

                            Conveyance of Receivables

      Section 2.1 Conveyance of Receivables. In consideration of the Issuer's
delivery to or upon the order of the Depositor on the Closing Date of the Notes
and the Certificates and the other amounts to be distributed from time to time
to the order of the Depositor in accordance with the

                                       17

<PAGE>

terms of this Agreement, the Depositor does hereby sell, transfer, assign, set
over and otherwise convey to the Issuer, without recourse, all right, title and
interest of the Depositor in and to:

            (a) the Receivables and all moneys received thereon after the Cutoff
      Date;

            (b) an assignment of the security interests in the Financed Vehicles
      granted by Obligors pursuant to the Receivables and any other interest of
      the Originator or the Depositor in such Financed Vehicles;

            (c) any proceeds and the right to receive proceeds with respect to
      the Receivables from claims on any physical damage, credit life or
      disability insurance policies covering Financed Vehicles or Obligors and
      any proceeds from the liquidation of the Receivables;

            (d) the right to cause the related Dealer or Third-Party Lender to
      repurchase Receivables pursuant to a Dealer Agreement or an Auto Loan
      Purchase and Sale Agreement, respectively, as a result of a breach of
      representation or warranty in the related Dealer Agreement or Auto Loan
      Purchase and Sale Agreement, respectively;

            (e) all rights, if any, to refunds for the costs of Service
      Contracts on the related Financed Vehicles;

            (f) the related Receivable Files;

            (g) all of the Depositor's right, title and interest in its rights
      and benefits, but none of its obligations or burdens, under the Purchase
      Agreement, including the Depositor's rights under the Purchase Agreement,
      to enforce the delivery requirements, representations and warranties and
      the cure and repurchase obligations of Triad under the Purchase Agreement;
      and

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

            It is the intention of the Depositor that the transfer and
assignment contemplated by this Agreement constitutes a sale of the Receivables
and Other Conveyed Property from the Depositor to the Issuer and the beneficial
interest in and title to the Receivables and the Other Conveyed Property will
not be part of the Depositor's estate in the event of the filing of a bankruptcy
petition by or against the Depositor under any bankruptcy law. In the event
that, notwithstanding the intent of the Depositor, the transfer and assignment
contemplated hereby is held by a court of competent jurisdiction not to be a
sale, this Agreement will constitute a grant of a security interest in the
property referred to in this Section to the Issuer for the benefit of the
Indenture Trustee, the Noteholders and the Insurer.

      Section 2.2 [Reserved].

      Section 2.3 Further Encumbrance of Trust Property.

            (a) Immediately upon the conveyance to the Trust by the Depositor of
      the Trust Property, all right, title and interest of the Depositor in and
      to such item of Trust Property will terminate, and all such right, title
      and interest will vest in the Trust, in accordance with the Trust
      Agreement and the Statutory Trust Statute.

                                       18

<PAGE>

            (b) Immediately upon the vesting of the Trust Property in the Trust,
      the Trust will have the sole right to pledge or otherwise encumber such
      Trust Property. Pursuant to the Indenture, the Trust will grant a security
      interest in the Trust Property to the Indenture Trustee securing the
      repayment of the Notes and the Issuer's obligations to the Insurer. The
      Certificates will represent the beneficial ownership interest in the Trust
      Property, and the Certificateholders will be entitled to receive
      distributions with respect thereto as set forth herein.

            (c) Following the payment in full of the Notes and the release and
      discharge of the Indenture, all covenants of the Issuer under Article III
      of the Indenture will, until payment in full of the Certificates, remain
      as covenants of the Issuer for the benefit of the Certificateholders,
      enforceable by the Certificateholders to the same extent as such covenants
      were enforceable by the Noteholders prior to the discharge of the
      Indenture. Any rights of the Indenture Trustee under Article III of the
      Indenture, following the discharge of the Indenture, will vest in
      Certificateholders.

            (d) The Indenture Trustee will, at such time as there are no Notes
      outstanding and all sums due to the Indenture Trustee, the Insurer and the
      Backup Servicer pursuant to the Indenture and this Agreement have been
      paid, release any remaining portion of the Trust Property to the
      Certificateholders.

                                   ARTICLE III

                                 The Receivables

      Section 3.1 Representations and Warranties. The Depositor hereby conveys
its rights, title and interest in and to the representations and warranties made
by the Originator in respect of the Receivables pursuant to the Purchase
Agreement and this Agreement.

      In addition, the Depositor makes the following representations and
warranties, on which the Issuer relies in accepting the Receivables and
delivering the Securities. Such representations and warranties speak as of the
Closing Date, but shall survive the transfer and assignment of the Receivables
by the Depositor to the Issuer and the pledge thereof to the Indenture Trustee
in accordance with the terms of the Indenture:

            (a) Title. The Depositor shall convey to the Issuer all right, title
      and interest of the Depositor in and to the Receivables, including all
      right, title and interest of the Depositor in and to the security
      interests in the related Financed Vehicles.

            (b) All Filings Made. The Depositor has caused all filings
      (including UCC filings) to be made in Delaware with respect to the sale of
      the Receivables to the Issuer and the pledge contemplated in the Basic
      Documents to the Indenture Trustee.

            (c) Liens. The Depositor has not taken any actions to create, incur
      or suffer to exist any Lien on or restriction on transferability of any
      Receivable except for the Lien of the Indenture and the restrictions on
      transferability imposed by this Agreement.

      Section 3.2 Repurchase upon Breach of Representations and Warranties.

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            (a) The Depositor, the Servicer, the Insurer, the Indenture Trustee
      or the Trust, as the case may be, will inform the other parties to this
      Agreement and Triad promptly, by notice in writing, upon the discovery of
      any breach of the representations and warranties referenced in Section 3.1
      and in Schedule B hereto. As of the last day of the second (or, if Triad
      so elects, the first) month following the discovery by Triad or receipt by
      Triad of notice of such breach, unless such breach is cured by such date,
      Triad will repurchase any Receivable in which the interests of the
      Noteholders or the Insurer are materially and adversely affected by any
      such breach as of such date. The "second month" will mean the month
      following the month in which discovery occurs or notice is given, and the
      "first month" will mean the month in which discovery occurs or notice is
      given.

            In consideration of and simultaneously with the repurchase of the
Receivable, Triad will remit to the Collection Account the Purchase Amount in
the manner specified in Section 5.6 and the Issuer and the Indenture Trustee
will execute such assignments and other documents reasonably requested by such
person in order to effect such repurchase. The Issuer and the Indenture Trustee
will take such steps in assigning such Receivable to Triad as are described in
Section 5.2 of the Purchase Agreement.

            The sole remedy of the Issuer, the Owner Trustee, the Indenture
Trustee or the Noteholders with respect to a breach of representations and
warranties pursuant to Section 3.1 and the agreement contained in this Section
will be the repurchase of Receivables pursuant to this Section, subject to the
conditions contained herein or to enforce the obligation of Triad to repurchase
such Receivables pursuant to the Purchase Agreement. Neither the Owner Trustee
nor the Indenture Trustee will have a duty to conduct any affirmative
investigation as to the occurrence of any conditions requiring the repurchase of
any Receivable pursuant to this Section.

            In addition to the foregoing and notwithstanding whether the related
Receivable has been purchased by Triad, Triad will indemnify the Trust, the
Indenture Trustee, the Backup Servicer, and the officers, directors, agents and
employees thereof, the Insurer and the Noteholders against all costs, expenses,
losses, damages, claims and liabilities, including reasonable fees and expenses
of counsel, which may be asserted against or incurred by any of them as a result
of third party claims arising out of the events or facts giving rise to such
breach.

            (b) Pursuant to Section 2.1, the Depositor conveyed to the Trust all
      of the Depositor's right, title and interest in its rights and benefits,
      but none of its obligations or burdens, under the Purchase Agreement
      including the Depositor's rights under the Purchase Agreement to enforce
      the delivery requirements, representations and warranties, indemnities and
      the cure or repurchase obligations of Triad thereunder. The Depositor
      hereby represents and warrants to the Trust that such assignment is valid
      and enforceable against the Depositor.

      Section 3.3 Custody of Receivables Files.

            (a) In connection with the sale, transfer and assignment of the
      Receivables and the Other Conveyed Property to the Trust pursuant to this
      Agreement, the Indenture Trustee hereby revocably appoints the Custodian,
      and the Custodian hereby accepts such appointment, to act as the agent of
      the Indenture Trustee as custodian of the following documents or
      instruments in its possession or in the possession of third party vendors
      on behalf of the Custodian which will be delivered to the Custodian as
      agent of the Indenture Trustee on or before the Closing Date (with respect
      to each Receivable):

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                  (i) the fully executed original of the Contract related to
such Receivable (together with any agreements modifying the Receivable,
including any extension agreements);

                  (ii) the original certificate of title (when received)
indicating that the Financed Vehicle is owned by the Obligor and subject to the
interest of Triad as first lienholder or secured party (including any Lien
Certificate received by Triad) or that it has been assigned to Triad as first
lienholder or secured party, or, if such original certificate of title has not
yet been received, a copy of the application therefor, showing Triad as secured
party and otherwise such related documents, if any, that Triad keeps on file in
accordance with its customary procedures; and

                  (iii) in connection with Receivable Files pertaining to retail
installment sale contracts, the original credit application, or a copy thereof
(collectively, the "Receivable Files").

            (b) Upon payment in full of any Receivable, the Servicer will notify
      the Custodian pursuant to a certificate of an officer of the Servicer
      (which certificate will include a statement to the effect that all amounts
      received in connection with such payments which are required to be
      deposited in the Collection Account pursuant to Section 4.1 have been so
      deposited) and will request delivery of the Receivable File to the
      Servicer. From time to time as appropriate for servicing and enforcing any
      Receivable, the Custodian will, upon written request of an officer of the
      Servicer and delivery to the Custodian of a receipt signed by such
      officer, cause the related Receivable File to be released to the Servicer.
      The Servicer's receipt of a Receivable File will obligate the Servicer to
      return the Receivable File to the Custodian when its need by the Servicer
      has ceased unless the Receivable is repurchased as described in Section
      3.2 or 4.7.

            (c) The Custodian, or its third-party vendor, will hold the
      Receivable Files on behalf of the Indenture Trustee and will maintain such
      accurate and complete accounts, records and computer systems pertaining to
      each Receivable File as will enable the Indenture Trustee to comply with
      the terms and conditions of this Agreement. For so long as Triad is the
      Custodian, the Custodian will maintain the Receivable Files at (i) its
      office located at 7711 Center Avenue, Suite 100, Huntington Beach,
      California 92647, (ii) with a third-party service provider identified on
      Schedule D hereto, as it may be modified from time to time by the
      Custodian with the consent of the Insurer, which will not be unreasonably
      withheld, or (iii) subject to the prior written consent of the Insurer, so
      long as no Insurer Default has occurred and is continuing, at such other
      office as will from time to time be identified to the Indenture Trustee
      and the Insurer. Each Receivable will be identified on the books and
      records of the Custodian in a manner that (i) indicates that the
      Receivables are held by the Custodian on behalf of the Indenture Trustee
      and (ii) is otherwise necessary, as reasonably determined by the
      Custodian. So long as JPMorgan Chase Bank, N.A. is not the Custodian, the
      Custodian will conduct, or cause to be conducted, periodic physical
      inspections of the Receivable Files held by it, and of the related
      accounts, records and computer systems, in such a manner as will enable
      the Indenture Trustee, the Insurer and the Custodian to verify the
      accuracy of the Custodian's inventory and recordkeeping. Such inspections
      will be conducted at such times, in such manner and by such persons
      including independent accountants, as the Insurer or the Indenture Trustee
      may reasonably request and the cost of such inspections will be borne
      directly by the Custodian, so long as JPMorgan Chase Bank, N.A. is not the
      Custodian, and not by the Indenture Trustee, but such inspections are not
      to take place more than once per year. The Custodian will promptly report
      to the Insurer and the Indenture Trustee any failure on its part to hold
      the Receivable Files and maintain its

                                       21

<PAGE>

      accounts, records and computer systems as herein provided and promptly
      take appropriate action to remedy any such failure. Upon request, the
      Custodian will, at the expense of the party making such request, make
      copies or other electronic file records (e.g., diskettes, CDs, etc.) (the
      "Copies") of the Receivable Files and will deliver such Copies to the
      Indenture Trustee and the Indenture Trustee will hold such Copies on
      behalf of the Issuer Secured Parties.

            (d) The Custodian will, subject only to the Custodian's security
      requirements applicable to its own employees having access to similar
      records held by the Custodian, which requirements will be consistent with
      the practices of an institution that maintains custody of Receivable Files
      for its own account, and at such times as may be reasonably imposed by the
      Custodian, permit only the Insurer and the Indenture Trustee or their duly
      authorized representatives, attorneys or auditors to inspect the
      Receivable Files and the related accounts, records, and computer systems
      maintained by the Custodian pursuant hereto at such times as the Insurer
      or the Indenture Trustee may reasonably request during normal business
      hours.

            (e) The Custodian will be deemed to have received proper
      instructions with respect to the Receivable Files upon its receipt of
      written instructions signed by a Responsible Officer of the Indenture
      Trustee. Such instructions may be general or specific in terms. The
      Indenture Trustee will provide a copy of any such instructions to the
      Insurer.

            (f) The Custodian will indemnify the Issuer, the Owner Trustee, the
      Backup Servicer, the Insurer, the Noteholders and the Indenture Trustee
      for any and all liabilities, obligations, losses, damage, payments, costs
      or expenses of any kind whatsoever (including the fees and expenses of
      counsel) that may be imposed on, incurred or asserted against such Persons
      and their respective officers, directors, employees, agents, attorneys and
      successors and assigns as the result of any act or omission in any way
      relating to the maintenance and custody by the Custodian or any
      third-party vendor of the Receivable Files; provided, however, that the
      Custodian will not be liable for any portion of any such liabilities,
      obligations, losses, damages, payments, costs or expenses due to the
      willful misfeasance, bad faith or gross negligence of the Issuer, the
      Owner Trustee, the Backup Servicer, the Insurer or the Indenture Trustee
      or the officers, directors, employees and agents thereof. In no event will
      the Custodian be liable to any third party for acts or omissions of the
      Custodian other than as specifically set forth in this Section.

                                   ARTICLE IV

                   Administration and Servicing of Receivables

      Section 4.1 Duties of the Servicer.

            (a) The Servicer is hereby authorized to act as agent for the Trust
      and in such capacity will manage, service, administer and make collections
      on the Receivables (other than Purchased Receivables after the date of
      purchase thereof by Triad or the Servicer), and perform the other actions
      required by the Servicer under this Agreement. The Servicer agrees that
      its servicing of the Receivables will be carried out in accordance with
      customary and usual procedures of institutions which service motor vehicle
      retail installment sales contracts and, to the extent more exacting, the
      degree of skill and attention that the Servicer

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<PAGE>

      exercises from time to time with respect to all comparable motor vehicle
      receivables that it services for itself or others. In performing such
      duties, so long as Triad is the Servicer, it will substantially comply
      with the policies and procedures described on Schedule C, as such policies
      and procedures may be updated from time to time. The Servicer's duties
      will include collection and posting of all payments, responding to
      inquiries of Obligors on the Receivables, investigating delinquencies,
      sending payment coupons or statements to Obligors, reporting any required
      tax information to Obligors, monitoring the collateral, complying with the
      terms of the Blocked Account Agreement, accounting for collections and
      furnishing monthly and annual statements to the Indenture Trustee and the
      Insurer with respect to distributions, and performing the other duties
      specified herein.

            (b) The Servicer will also administer and enforce all rights and
      responsibilities of the holder of the Receivables provided for in the
      Dealer Agreements and Auto Loan Purchase and Sale Agreements (and will
      maintain possession of the Dealer Agreements and Auto Loan Purchase and
      Sale Agreements, to the extent it is necessary to do so), the Dealer
      Assignments, the Third-Party Lender Assignments and the Insurance
      Policies, to the extent that such Dealer Agreements, Auto Loan Purchase
      and Sale Agreements, Dealer Assignments, Third-Party Lender Assignments
      and Insurance Policies relate to the Receivables, the Financed Vehicles or
      the Obligors. To the extent consistent with the standards, policies and
      procedures otherwise required hereby, the Servicer will follow its
      customary standards, policies, and procedures and will have full power and
      authority, acting alone, to do any and all things in connection with such
      managing, servicing, administration and collection that it may deem
      necessary or desirable. Without limiting the generality of the foregoing,
      the Servicer is hereby authorized and empowered by the Trust to execute
      and deliver, on behalf of the Trust, any and all instruments of
      satisfaction or cancellation, or of partial or full release or discharge,
      and all other comparable instruments, with respect to the Receivables and
      with respect to the Financed Vehicles; provided, however, that
      notwithstanding the foregoing, the Servicer will not, except pursuant to
      an order from a court of competent jurisdiction, release an Obligor from
      payment of any unpaid amount under any Receivable or waive the right to
      collect the unpaid balance of any Receivable from the Obligor except in
      accordance with the Servicer's customary practices.

            (c) The Servicer is hereby authorized to commence, in its own name
      or in the name of the Trust, a legal proceeding to enforce a Receivable
      pursuant to Section 4.3 or to commence or participate in any other legal
      proceeding (including a bankruptcy proceeding) relating to or involving a
      Receivable, an Obligor or a Financed Vehicle. If the Servicer commences or
      participates in such a legal proceeding in its own name, the Trust will
      thereupon be deemed to have automatically assigned such Receivable to the
      Servicer solely for purposes of commencing or participating in any such
      proceeding as a party or claimant, and the Servicer is authorized and
      empowered by the Trust to execute and deliver in the Servicer's name any
      notices, demands, claims, complaints, responses, affidavits or other
      documents or instruments in connection with any such proceeding. The
      Indenture Trustee and the Owner Trustee will furnish the Servicer with any
      limited powers of attorney and other documents which the Servicer may
      reasonably request and which the Servicer deems necessary or appropriate
      and take any other steps which the Servicer may deem necessary or
      appropriate to enable the Servicer to carry out its servicing and
      administrative duties under this Agreement.

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<PAGE>

      Section 4.2 Collection of Receivable Payments; Modifications of
Receivables; Blocked Account Agreement.

            (a) Consistent with the standards, policies and procedures required
      by this Agreement, the Servicer will make reasonable efforts to collect
      all payments called for under the terms and provisions of the Receivables
      as and when the same will become due, and will follow such collection
      procedures as it follows with respect to all comparable motor vehicle
      receivables that it services for itself or others and otherwise act with
      respect to the Receivables, the Dealer Agreements, the Dealer Assignments,
      the Auto Loan Purchase and Sale Agreements, the Third-Party Lender
      Assignments, the Insurance Policies and the Other Conveyed Property in
      such manner as will, in the reasonable judgment of the Servicer, maximize
      the amount to be received by the Trust with respect thereto. The Servicer
      is authorized in its discretion to waive any prepayment charge, late
      payment charge or any other similar fees that may be collected in the
      ordinary course of servicing any Receivable.

            (b) The Servicer may at any time agree to a modification or
      amendment of a Receivable (i) in order to change the Obligor's regular due
      date in accordance with its servicing policies and procedures, (ii) in
      order to re-amortize the Scheduled Receivables Payments on the Receivable
      following a partial prepayment of principal or (iii) as may be required by
      law, in accordance with its customary procedures if the Servicer believes
      in good faith that such extension, modification or amendment is necessary
      to avoid a default on such Receivable, will maximize the amount to be
      received by the Trust with respect to such Receivable, and is otherwise in
      the best interests of the Trust; provided, however, that in no event may a
      Receivable be extended beyond the Collection Period immediately preceding
      the last Final Scheduled Distribution Date.

            (c) The Servicer may grant payment extensions on, or other
      modifications or amendments to, a Receivable (in addition to those
      modifications permitted by Section 4.2(b)) in accordance with its
      customary procedures if the Servicer believes in good faith that such
      extension, modification or amendment is necessary to avoid a default on
      such Receivable, will maximize the amount to be received by the Trust with
      respect to such Receivable, and is otherwise in the best interests of the
      Trust; provided, however, that:

                  (i) The aggregate period of all extensions on a Receivable
does not exceed eight months;

                  (ii) In no event may a Receivable be extended beyond the
Collection Period immediately preceding the latest Final Scheduled Distribution
Date;

                  (iii) The average Monthly Extension Rate for any three
consecutive Collection Periods does not exceed 4%;

                  (iv) The Servicer may not amend or modify a Receivable (except
as provided in Section 4.2(b) and this Section 4.2(c) or as otherwise required
by law) without the consent of the Insurer, so long as no Insurer Default has
occurred and is continuing, or the Majority Noteholders (if an Insurer Default
has occurred and is continuing; and

                  (v) In no event may a Receivable be extended more than once
within a twelve month period.

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<PAGE>

            With respect to Section 4.2(c)(iii), in the event the average of the
Monthly Extension Rates calculated with respect to three consecutive Collection
Periods exceeds 4% (which information will be set forth in the related
Servicer's Certificate), the Servicer will, so long as the Servicer is not
JPMorgan Chase Bank, N.A., acting as Backup Servicer, on the third such
Accounting Date, purchase from the Trust the Receivables with respect to which
payment had been extended (starting with the Receivables most recently so
extended) in an aggregate Principal Balance equal to the product of (i) the
excess of such average of Monthly Extension Rates over 4% and (ii) the Aggregate
Principal Balance, and pay the related Purchase Amount on the related
Determination Date; provided, however, that in the event the Backup Servicer
will be acting as Servicer hereunder, the foregoing sentence will apply only in
respect of Receivables as to which payments had been extended by such Backup
Servicer.

            (d) The Servicer will use its best efforts to notify or direct
      Obligors to make all payments on the Receivables, whether by check or by
      direct debit of the Obligor's bank account, to be made directly to one or
      more Processing Banks pursuant to a Blocked Account Agreement. The
      Servicer will use its best efforts to notify or direct any Processing Bank
      to deposit all payments on the Receivables in the Lockbox Account no later
      than the Business Day after receipt, and to cause all amounts credited to
      the Lockbox Account on account of such payments to be transferred to the
      Collection Account no later than the second Business Day after receipt of
      available funds with respect to such payments. The Lockbox Account will be
      a demand deposit account held by the Processing Bank.

            On the Closing Date, the Servicer will deposit or cause to be
deposited in immediately available funds into the Collection Account all amounts
collected with respect to the Receivables from the Cutoff Date to the fourth
(4th) Business Day preceding the Closing Date. As soon as possible thereafter
and in accordance with the provisions of this Agreement, all amounts collected
with respect to the Receivables from such date to the Closing Date will be
deposited into the Collection Account.

            Notwithstanding any Blocked Account Agreement, or any of the
provisions of this Agreement relating to the Blocked Account Agreement, the
Servicer will remain obligated and liable to the Trust, the Indenture Trustee
and Noteholders for servicing and administering the Receivables and the Other
Conveyed Property in accordance with the provisions of this Agreement without
diminution of such obligation or liability by virtue thereof; provided, however,
that the foregoing will not apply to any Backup Servicer for so long as a
Processing Bank is performing its obligations pursuant to the terms of a Blocked
Account Agreement.

            If the Servicer is terminated, the successor Servicer will assume
all of the rights and obligations of the outgoing Servicer under the Blocked
Account Agreement subject to the terms hereof. In such event, the successor
Servicer will be deemed to have assumed all of the outgoing Servicer's interest
therein and to have replaced the outgoing Servicer as a party to each such
Blocked Account Agreement to the same extent as if such Blocked Account
Agreement had been assigned to the successor Servicer, except that the outgoing
Servicer will not thereby be relieved of any liability or obligations on the
part of the outgoing Servicer to the Processing Bank under such Blocked Account
Agreement. The outgoing Servicer will, upon request of the Indenture Trustee,
but at the expense of the outgoing Servicer, deliver to the successor Servicer
all documents and records relating to each such Blocked Account Agreement and an
accounting of amounts collected and held by the Processing Bank and otherwise
use its best efforts to effect the orderly and efficient transfer of any Blocked
Account Agreement to the successor Servicer. In the event that the Insurer (so
long as no

                                       25

<PAGE>

Insurer Default has occurred and is continuing) or the Majority Noteholders (if
an Insurer Default has occurred and is continuing) elects to change the identity
of the Processing Bank, the outgoing Servicer, at its expense, will cause the
Processing Bank to deliver, at the direction of the Insurer (so long as no
Insurer Default has occurred and is continuing) or the Majority Noteholders (if
an Insurer Default has occurred and is continuing) to the Indenture Trustee or a
successor Processing Bank, all documents and records relating to the Receivables
and all amounts held (or thereafter received) by the Processing Bank (together
with an accounting of such amounts) and will otherwise use its best efforts to
effect the orderly and efficient transfer of the lockbox arrangements and the
Servicer will notify the Obligors to make payments to the Lockbox established by
the successor.

            (e) The Servicer will remit all payments by or on behalf of the
      Obligors received in the form of checks with payment coupons directly by
      the Servicer to the Processing Bank for deposit into the Collection
      Account, in either case, and as soon as practicable, but in no event later
      than the second Business Day after receipt thereof. Other payments
      received by each of the Servicer, Triad and the Depositor will be
      deposited into a local servicing account for processing immediately upon
      receipt, and then transferred in immediately available funds to the
      Lockbox Account for deposit to the Collection Account no later than the
      second (2nd) Business Day after receipt of available amounts.

      Section 4.3 Realization upon Receivables.

            (a) Consistent with the standards, policies and procedures required
      by this Agreement, the Servicer will use commercially reasonable efforts
      to repossess (or otherwise comparably convert the ownership of) and
      liquidate any Financed Vehicle securing a Receivable with respect to which
      the Servicer has determined that payments thereunder are not likely to be
      resumed, as soon as is practicable after default on such Receivable but in
      no event later than the date on which 10% or more of a Scheduled
      Receivables Payment has become 91 days delinquent; provided, however, that
      the Servicer may elect not to repossess a Financed Vehicle within such
      time period if in its good faith judgment it determines that the proceeds
      ultimately recoverable with respect to such Receivable would be increased
      by forbearance. The Servicer is authorized to follow such customary
      practices and procedures as it will deem necessary or advisable,
      consistent with the standard of care required by Section 4.1, which
      practices and procedures may include reasonable efforts to realize upon
      any recourse to Dealers and Third-Party Lenders, the sale of the related
      Financed Vehicle at public or private sale, the submission of claims under
      an Insurance Policy and other actions by the Servicer in order to realize
      upon such a Receivable. The Servicer will have the discretion to retain or
      sell to a third-party any of the Liquidated Receivables. The foregoing is
      subject to the provision that, in any case in which the Financed Vehicle
      will have suffered damage, the Servicer will not expend funds in
      connection with any repair or towards the repossession of such Financed
      Vehicle unless it will determine in its discretion that such repair and/or
      repossession will increase the proceeds of liquidation of the related
      Receivable by an amount greater than the amount of such expenses. All
      amounts received upon liquidation of a Financed Vehicle will be remitted
      by the Servicer to the Collection Account as soon as practicable, but in
      no event later than the second Business Day after receipt of available
      funds thereof. The Servicer will be entitled to recover all reasonable
      expenses incurred by it in the course of repossessing and liquidating a
      Financed Vehicle into cash proceeds, as provided in Section 5.7(a) or out
      of the cash proceeds of such Financed Vehicle, any deficiency obtained
      from the Obligor or any amounts received from the related Dealer or
      Third-Party Lender, which amounts in reimbursement may be retained by the
      Servicer (and

                                       26

<PAGE>

      will not be required to be deposited as provided in Section 4.2(e)) to the
      extent of such expenses. The Servicer will pay on behalf of the Trust any
      personal property taxes assessed on repossessed Financed Vehicles. The
      Servicer will be entitled to reimbursement of any such tax from Net
      Liquidation Proceeds with respect to such Receivable.

            (b) If the Servicer elects to commence a legal proceeding to enforce
      a Dealer Agreement, Auto Loan Purchase and Sale Agreement, Dealer
      Assignment or Third-Party Lender Assignment, the act of commencement will
      be deemed to be an automatic assignment from the Trust to the Servicer of
      the rights under such Dealer Agreement, Auto Loan Purchase and Sale
      Agreement, Dealer Assignment or Third-Party Lender Assignment for purposes
      of collection only. If, however, in any enforcement suit or legal
      proceeding it is held that the Servicer may not enforce a Dealer
      Agreement, Auto Loan Purchase and Sale Agreement, Dealer Assignment or
      Third-Party Lender Assignment on the grounds that it is not a real party
      in interest or a Person entitled to enforce the Dealer Agreement, Auto
      Loan Purchase and Sale Agreement, Dealer Assignment or Third-Party Lender
      Assignment, the Owner Trustee and/or the Indenture Trustee, at the
      Servicer's expense, will take such steps as the Servicer deems reasonably
      necessary to enforce the Dealer Agreement, Auto Loan Purchase and Sale
      Agreement, Dealer Assignment or Third-Party Lender Assignment, including
      bringing suit in its name or the name of the Trust and the Owner Trustee
      and/or the Indenture Trustee for the benefit of the Issuer Secured
      Parties. All amounts recovered will be remitted directly by the Servicer
      as provided in Section 4.2(e).

      Section 4.4 Insurance.

            (a) The Servicer will require, in accordance with its customary
      servicing policies and procedures, that each Financed Vehicle be insured
      by the related Obligor under the Insurance Policies referred to in
      Paragraph 24 of the Schedule of Representations and Warranties. Each
      Receivable requires the Obligor to maintain such physical loss and damage
      insurance, naming Triad and its successors and assigns as additional
      insureds, and permits the holder of such Receivable to obtain physical
      loss and damage insurance at the expense of the Obligor if the Obligor
      fails to maintain such insurance. If the Servicer determines that an
      Obligor has failed to obtain or maintain a physical loss and damage
      Insurance Policy covering the related Financed Vehicle as described in
      Paragraph 24 (including during the repossession of such Financed Vehicle)
      the Servicer may enforce the rights of the holder of the Receivable under
      the Receivable to require the Obligor to obtain such physical loss and
      damage insurance in accordance with its customary servicing policies and
      procedures. The Servicer may, at its sole option, maintain a vendor's
      single interest or other collateral protection insurance policy with
      respect to all Financed Vehicles ("Collateral Insurance") which policy by
      its terms insures against physical loss and damage in the event any
      Obligor fails to maintain physical loss and damage insurance with respect
      to the related Financed Vehicle. The parties acknowledge that the Servicer
      does not now have, nor does it intend to obtain, Collateral Insurance. All
      policies of Collateral Insurance will be endorsed with clauses providing
      for loss payable to the Servicer. Costs incurred by the Servicer in
      maintaining such Collateral Insurance will be paid by the Servicer.

            (b) The Servicer may, at its sole option, if an Obligor fails to
      obtain or maintain a physical loss and damage Insurance Policy, obtain
      insurance with respect to the related Financed Vehicle and advance on
      behalf of such Obligor, as required under the terms of the insurance
      policy, the premiums for such "force-placed" insurance. The parties hereto

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      acknowledge that the Servicer does not now have, nor does it intend to
      obtain, force-placed insurance. All policies of force-placed insurance
      will be endorsed with clauses providing for loss payable to the Servicer.
      Any cost incurred by the Servicer in maintaining such force-placed
      insurance will only be recoverable out of premiums paid by the Obligors or
      Net Liquidation Proceeds with respect to the Receivable, as provided in
      Section 4.4(c).

            In connection with any force-placed insurance obtained hereunder,
the Servicer may, in the manner and to the extent permitted by applicable law,
require the Obligors to repay the entire premium to the Servicer. In no event
will the Servicer include the amount of the premium in the Amount Financed under
the Receivable. "Insurance add-on amounts," which are the premiums charged to
Obligors in the event that the Servicer obtains force-placed insurance, with
respect to any Receivable will be treated as a separate obligation of the
Obligor and will not be added to the Principal Balance of such Receivable, and
amounts allocable thereto will not be available for distribution on the Notes
and the Certificates. The Servicer will retain and separately administer the
right to receive payments from Obligors with respect to insurance add-on amounts
or rebates of force-placed insurance premiums. If an Obligor makes a payment
with respect to a Receivable having force-placed insurance, but the Servicer is
unable to determine whether the payment is allocable to the Receivable or to the
insurance add-on amount, the payment will be applied first to any unpaid
Scheduled Receivables Payments and then to the insurance add-on amount. Net
Liquidation Proceeds on any Receivable will be used first to pay the Principal
Balance and accrued interest on such Receivable and then to pay the related
insurance add-on amount. If an Obligor under a Receivable with respect to which
the Servicer has placed force-placed insurance fails to make scheduled payments
of such insurance add-on amount as due, and the Servicer has determined that
eventual payment of the insurance add-on amount is unlikely, the Servicer may,
but will not be required to, purchase such Receivable from the Trust for the
Purchase Amount on any subsequent Determination Date. Any such Receivable, and
any Receivable with respect to which the Servicer has placed force-placed
insurance which has been paid in full (excluding any insurance add-on amounts)
will be assigned to the Servicer.

            (c) The Servicer may sue to enforce or collect upon the Insurance
      Policies, in its own name, if possible, or as agent of the Trust. If the
      Servicer elects to commence a legal proceeding to enforce an Insurance
      Policy, the act of commencement will be deemed to be an automatic
      assignment of the rights of the Trust under such Insurance Policy to the
      Servicer for purposes of collection only. If, however, in any enforcement
      suit or legal proceeding it is held that the Servicer may not enforce an
      Insurance Policy on the grounds that it is not a real party in interest or
      a holder entitled to enforce the Insurance Policy, the Owner Trustee
      and/or the Indenture Trustee, at the Servicer's expense, will take such
      steps as the Servicer deems necessary to enforce such Insurance Policy,
      including bringing suit in its name or the name of the Trust and the Owner
      Trustee and/or the Indenture Trustee for the benefit of the Noteholders.

            (d) The Servicer will cause itself and may cause the Indenture
      Trustee to be named as named insured under all policies of Collateral
      Insurance.

      Section 4.5 Maintenance of Security Interests in Vehicles.

            (a) Consistent with the policies and procedures required by this
      Agreement, the Servicer will take such steps on behalf of the Trust as are
      necessary to maintain perfection of the security interest created by each
      Receivable in the related Financed Vehicle, including

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      obtaining the execution by the Obligors and the recording, registering,
      filing, re-recording, re-filing, and re-registering of all security
      agreements, financing statements and continuation statements as are
      necessary to maintain the security interest granted by the Obligors under
      the respective Receivables. The Indenture Trustee hereby authorizes the
      Servicer, and the Servicer agrees, to take any and all steps necessary to
      re-perfect such security interest on behalf of the Trust as necessary
      because of the relocation of a Financed Vehicle or for any other reason.
      In the event that the assignment of a Receivable to the Trust is
      insufficient, without a notation on the related Financed Vehicle's
      certificate of title, or without fulfilling any additional administrative
      requirements under the laws of the state in which the Financed Vehicle is
      located, to perfect a security interest in the related Financed Vehicle in
      favor of the Trust, the Servicer agrees that Triad's designation as the
      secured party on the certificate of title is in its capacity as Servicer
      as agent of the Trust.

            (b) Upon the occurrence of an Insurance Agreement Event of Default,
      the Insurer may (so long as no Insurer Default has occurred and is
      continuing) instruct the Indenture Trustee and the Servicer to take or
      cause to be taken, or, if an Insurer Default has occurred and is
      continuing, upon the occurrence of a Servicer Termination Event, the
      Indenture Trustee and the Servicer will take or cause to be taken such
      action as may, in the opinion of counsel to the Controlling Party, be
      necessary to perfect or re-perfect the security interests in the Financed
      Vehicles securing the Receivables in the name of the Trust by amending the
      title documents of such Financed Vehicles or by such other reasonable
      means as may, in the opinion of counsel to the Controlling Party, be
      necessary or prudent.

            Triad hereby agrees to pay all expenses related to such perfection
or reperfection and to take all action necessary therefor. In addition, prior to
the occurrence of an Insurance Agreement Event of Default, the Controlling Party
may instruct the Servicer to take or cause to be taken such action as may, in
the opinion of counsel to the Controlling Party, be necessary to perfect or
re-perfect the security interest in the Financed Vehicles underlying the
Receivables in the name of the Trust, including by amending the title documents
of such Financed Vehicles or by such other reasonable means as may, in the
opinion of counsel to the Controlling Party, be necessary or prudent; provided,
however, that if the Controlling Party requests that the title documents be
amended prior to the occurrence of an Insurance Agreement Event of Default, the
out-of-pocket expenses of the Servicer or the Indenture Trustee in connection
with such action will be reimbursed to the Servicer or the Indenture Trustee, as
applicable, by the Controlling Party. Triad hereby appoints the Indenture
Trustee as its attorney-in-fact to execute certificates of title or any other
documents, prepared by the Servicer, in the name and stead of Triad (it being
understood that and agreed that the Indenture Trustee has no obligation to take
such steps with respect to any perfection or reperfection, except as pursuant to
the Basic Documents to which it is a party and for which Triad has paid all
expenses) and the Indenture Trustee hereby accepts such appointment.

            (c) Upon the occurrence of a Servicer Termination Event, at the
      option of the Controlling Party, Triad shall be terminated as Custodian
      and all original receivable contracts and related title documents must be
      transferred to a successor custodian acceptable to the Controlling Party.

      Section 4.6 Covenants, Representations, and Warranties of Servicer. By its
execution and delivery of this Agreement, the Servicer makes the following
representations, warranties and covenants on which the Issuer relies in
accepting the Receivables, on which the Indenture Trustee relies in
authenticating the Notes and on which the Insurer relies in issuing the Note
Policy.

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            (a) The Servicer covenants as follows:

                  (i) Liens in Force. The Financed Vehicle securing each
Receivable will not be released in whole or in part from the security interest
granted by the Receivable, except upon payment in full of the Receivable or as
otherwise contemplated herein;

                  (ii) No Impairment. The Servicer will do nothing to impair the
rights of the Trust or the Noteholders in the Receivables, the Dealer
Agreements, the Auto Loan Purchase and Sale Agreements, the Dealer Assignments,
the Third-Party Lender Assignments, the Insurance Policies or the Other Conveyed
Property except as otherwise expressly provided herein;

                  (iii) No Amendments. The Servicer will not extend or otherwise
amend the terms of any Receivable, except in accordance with Section 4.2; and

                  (iv) Restrictions on Liens. The Servicer will not (i) create,
incur or suffer to exist, or agree to create, incur or suffer to exist, or
consent to cause or permit in the future (upon the happening of a contingency or
otherwise) the creation, incurrence or existence of any Lien or restriction on
transferability of the Receivables except for the Lien in favor of the Indenture
Trustee for the benefit of the Noteholders and Insurer, and the restrictions on
transferability imposed by this Agreement or (ii) sign or file under the UCC of
any jurisdiction any financing statement which names Triad or the Servicer as a
debtor, or sign any security agreement authorizing any secured party thereunder
to file such financing statement, with respect to the Receivables, except in
each case any such instrument solely securing the rights and preserving the Lien
of the Indenture Trustee, for the benefit of the Noteholders and the Insurer.

            (b) The Servicer represents, warrants and covenants as of the
      Closing Date as to itself that the representations and warranties set
      forth on the Schedule of Representations attached hereto as Schedule B are
      true and correct, provided that such representations and warranties
      contained therein and herein will not apply to any entity other than
      Triad.

      Section 4.7 Purchase of Receivables Upon Breach of Covenant. Upon
discovery by any of the Servicer, the Insurer, the Trust or a Responsible
Officer of the Indenture Trustee of a breach of any of the representations,
warranties and covenants set forth in Sections 4.5(a) or 4.6, the party
discovering such breach will give prompt written notice to the others; provided,
however, that the failure to give any such notice will not affect any obligation
of Triad as Servicer under this Section 4.7. As of the second Accounting Date
following its discovery or receipt of notice of any breach of any
representation, warranty or covenant set forth in Sections 4.5(a) or 4.6 which
materially and adversely affects the interests of the Noteholders or the Insurer
in any Receivable (including any Liquidated Receivable) (or, at Triad's
election, the first Accounting Date so following) or the related Financed
Vehicle, Triad will, unless such breach has been cured in all material respects,
purchase from the Trust the Receivable affected by such breach and, on the
related Determination Date, Triad will pay the related Purchase Amount. It is
understood and agreed that the obligation of Triad to purchase any Receivable
(including any Liquidated Receivable) with respect to which such a breach has
occurred and is continuing will, if such obligation is fulfilled, constitute the
sole remedy against Triad for such breach available to the Insurer, the
Noteholders, the Owner Trustee or the Indenture Trustee; provided, however, that
Triad will indemnify the Trust, the Backup Servicer, the Insurer, the Owner
Trustee, the Indenture Trustee and the Noteholders from and against all costs,
expenses, losses, damages, claims and liabilities, including reasonable fees and
expenses of counsel, which may be asserted against or incurred by any of them as
a result of third party claims arising out of the

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<PAGE>

events or facts giving rise to such breach. The indemnification provided
pursuant to this section will survive the removal or resignation of the
Indenture Trustee and or the Backup Servicer. In no event shall JPMorgan Chase
Bank, N.A., in its capacity as the Backup Servicer or successor Servicer, be
obligated to repurchase any Receivable pursuant to this Section 4.7.

      Section 4.8 Total Servicing Fee; Payment of Certain Expenses by Servicer.
On each Distribution Date, the Servicer will be entitled to receive out of the
Collection Account the Base Servicing Fee and any Supplemental Servicing Fee for
the related Collection Period (together, the "Servicing Fee") pursuant to
Section 5.7. The Servicer will be required to pay all expenses incurred by it in
connection with its activities under this Agreement (including taxes imposed on
the Servicer, expenses incurred in connection with distributions and reports
made by the Servicer to Noteholders or the Insurer and, to the extent not
provided for pursuant to Section 5.7, all other fees and out-of-pocket expenses
of the Owner Trustee, the Backup Servicer, and the Indenture Trustee, except
taxes levied or assessed against the Trust, the Owner Trustee, the Backup
Servicer or the Indenture Trustee, and claims against the Trust, the Owner
Trustee, the Backup Servicer or the Indenture Trustee in respect of
indemnification, which taxes and claims in respect of indemnification against
the Trust are expressly stated to be for the account of Triad). The Servicer
will, to the extent not provided for pursuant to Section 5.7, be liable for the
fees and out-of-pocket expenses of the Owner Trustee, the Backup Servicer, the
Indenture Trustee, the Custodian, the Processing Bank (and any fees under the
Blocked Account Agreement) and the Independent Accountants except taxes levied
or assessed against such parties. Notwithstanding the foregoing, if the Servicer
is not Triad, a successor to Triad as Servicer including the Backup Servicer
permitted by Section 9.3 will not be liable for taxes levied or assessed against
the Trust or claims against the Trust in respect of indemnification, or the fees
and expenses referred to above.

      Section 4.9 Servicer's Certificate. No later than 11:00 a.m. New York City
time on each Determination Date, the Servicer will deliver (facsimile delivery
being acceptable; and in the case of the Servicer's Certificate to be delivered
to the Indenture Trustee, the Depositor and the Backup Servicer, an e-mail in a
computer file, the format of which will be agreed upon between the Servicer and
such parties) to the Indenture Trustee, the Owner Trustee, the Backup Servicer,
the Insurer and each Rating Agency a Servicer's Certificate containing among the
other things set forth in Exhibit A, (i) all information necessary to enable the
Indenture Trustee to give any notice required by Section 6.1 and to make the
distributions required by Section 5.7, (ii) a listing of all Purchased
Receivables and Administrative Receivables purchased as of the related
Accounting Date, (iii) all information necessary to enable the Indenture Trustee
to send the statements to Noteholders and the Insurer required by Section 5.10,
(iv) the Delinquency Rate, Net Loss Rate and Cumulative Net Loss Ratio for such
Determination Date, and (v) whether to the knowledge of the Servicer an
Insurance Agreement Event of Default, a Spread Cap Event (as defined in the
Insurance Agreement) or a Trigger Event (as defined in the Insurance Agreement)
has occurred. Receivables purchased by the Servicer or by Triad on the related
Accounting Date and each Receivable that became a Liquidated Receivable or that
was paid in full during the related Collection Period will be identified by
account number (as set forth in the Schedule of Receivables).

      Section 4.10 Annual Statement as to Compliance, Notice of Servicer
Termination Event.

            (a) The Servicer will deliver to the Indenture Trustee, the Owner
      Trustee, the Backup Servicer, the Insurer and each Rating Agency, on or
      before April 30 (or 120 days after the end of the Servicer's fiscal year,
      if other than December 31) of each year, beginning on April 30, 2006, an
      Officer's Certificate, dated as of December 31 (or other applicable date)

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      of such year, stating that (i) a review of the activities of the Servicer
      during the preceding 12-month period (or such other period as has elapsed
      from the Closing Date to the date of the first such certificate) and of
      its performance under this Agreement has been made under such officer's
      supervision, and (ii) to such officer's knowledge, based on such review,
      the Servicer has fulfilled all its obligations under this Agreement
      throughout such period, or, if there has been a default in the fulfillment
      of any such obligation, specifying each such default known to such officer
      and the nature and status thereof.

            (b) The Servicer will deliver to the Indenture Trustee, the Owner
      Trustee, the Backup Servicer, the Insurer, and each Rating Agency,
      promptly after having obtained knowledge thereof, but in no event later
      than two (2) Business Days thereafter, written notice in an Officer's
      Certificate of any event which with the giving of notice or lapse of time,
      or both, would become a Servicer Termination Event under Section 9.1.

      Section 4.11 Annual Independent Accountants' Report.

            The Servicer will cause a firm of independent certified public
accountants (the "Independent Accountants"), who may also render other services
to the Servicer or to its Affiliates, to deliver to the Indenture Trustee, the
Owner Trustee, the Backup Servicer, the Insurer and each Rating Agency, on or
before April 30 (or 120 days after the end of the Servicer's fiscal year, if
other than December 31) of each year, beginning on April 30, 2006 with respect
to the twelve months ended the immediately preceding December 31 (or other
applicable date) (or such other period as has elapsed from the Closing Date to
the date of such certificate), a report (the "Accountant's Report") addressed to
the board of directors of the Servicer to the effect that such firm has examined
the Servicer's assertion that the Servicer has complied with its Minimum
Servicing Standards and that such examination (1) was conducted in accordance
with the Attestation Protocol, (2) included examining, on a test basis, evidence
regarding Servicer's Compliance with its Minimum Servicing Standards. The
Accountant's Report shall include an opinion that the Servicer's assertion with
respect to compliance with its Minimum Servicing Standards is fairly stated in
all material respects or shall report the exceptions that do not permit such
opinion. The Accountant's Report required by this Section 4.11 may be replaced
at the election of the Servicer by any similar report or certification using
standards other than the Minimum Servicing Standards or the Attestation Protocol
that are now or in the future in use by servicers of retail installment sale
contracts or direct purchase money loans or that otherwise comply with any rule,
regulation, "no action" letter or similar guidance promulgated by the Securities
and Exchange Commission. Except to the extent otherwise required by applicable
law, the Servicer is not required to deliver the report hereunder if Triad is
reported solely as a consolidated subsidiary and there are no separate audits of
the books and records of Triad; provided, however, the Servicer is required to
notify the Indenture Trustee in writing that there are no separate audits of the
books and records of Triad and that therefore the Servicer will not be
delivering the report. Notwithstanding this Section 4.11, if the Backup Servicer
is then acting as the successor Servicer, it shall only be required to provide a
copy of its annual SAS 70 report and its audited financial statements.

      Section 4.12 Access to Certain Documentation and Information Regarding
Receivables. The Servicer will upon reasonable prior notice provide to
representatives of the Indenture Trustee, the Owner Trustee, the Backup Servicer
and the Insurer reasonable access to the documentation regarding the
Receivables. In each case, such access will be afforded without charge but only
upon reasonable request and during normal business hours. Any expense incident
to the exercise by the Indenture Trustee, Owner Trustee, Backup Servicer or the
Insurer will be borne by the Servicer to the

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extent such visits and examinations are not more frequent than once in any
twelve-month period, or a Servicer Termination Event has occurred and is
continuing. Nothing in this Section will affect the obligation of the Servicer
to observe any applicable law prohibiting disclosure of information regarding
the Obligors, and the failure of the Servicer to provide access as provided in
this Section 4.12 as a result of such obligation will not constitute a breach of
this Section 4.12.

      Section 4.13 Reserved.

      Section 4.14 Fidelity Bond and Errors and Omissions Policy. The Servicer
will not be required to maintain an errors and omissions policy. The Servicer
will maintain a fidelity bond of a type and in an amount customary for servicers
engaged in the business of servicing motor vehicle receivables.

                                    ARTICLE V

            Trust Accounts; Distributions; Statements to Noteholders

      Section 5.1 Establishment of Trust Accounts.

            (a) (i) The Indenture Trustee, on behalf of the Noteholders and the
      Insurer, will establish and maintain in its own name one or more Eligible
      Deposit Accounts (collectively, the "Collection Account"), bearing a
      designation clearly indicating that the funds deposited therein are held
      for the benefit of the Indenture Trustee on behalf of the Noteholders and
      the Insurer. The Collection Account will initially be established with the
      Indenture Trustee.

                  (ii) The Indenture Trustee, on behalf of the Noteholders, will
establish and maintain in its own name an Eligible Deposit Account (the "Note
Distribution Account"), bearing a designation clearly indicating that the funds
deposited therein are held for the benefit of the Indenture Trustee on behalf of
the Noteholders and the Insurer. The Note Distribution Account will initially be
established with the Indenture Trustee.

                  (iii) The Indenture Trustee, on behalf of the Noteholders,
will establish and maintain in its own name an Eligible Deposit Account (the
"Spread Account"), bearing a designation clearly indicating that the funds
deposited therein are held in trust for the benefit of the Indenture Trustee on
behalf of the Noteholders and the Insurer. The Spread Account will initially be
established with the Indenture Trustee.

                  (iv) Funds on deposit in the Collection Account, the Note
Distribution Account (but only to the extent of deposits therein for more than
one Business Day), and the Spread Account (collectively, the "Trust Accounts")
will be invested by the Indenture Trustee (or any custodian with respect to
funds on deposit in any such account) in Eligible Investments selected in
writing by the Servicer (pursuant to standing instructions or otherwise). All
such Eligible Investments will be held by or on behalf of the Indenture Trustee
for the benefit of the Noteholders and the Insurer, as applicable. Funds on
deposit in any Trust Account will be invested in Eligible Investments that will
mature so that such funds will be available at the close of business on the
Business Day immediately preceding the following Distribution Date. However, if
each of the Rating Agencies confirms that it would not affect the ratings
assigned to the Notes and the Insurer consents, funds on deposit in the Spread
Account may be invested in Eligible Investments that will

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<PAGE>

mature so that funds will be available on the following Distribution Date. All
Eligible Investments will be held to maturity.

            (b) All investment earnings of moneys deposited in the Trust
      Accounts will be deposited (or caused to be deposited) by the Indenture
      Trustee in the Collection Account, and any loss resulting from such
      investments will be charged to the applicable Trust Account. The Servicer
      will not direct the Indenture Trustee to make any investment of any funds
      held in any of the Trust Accounts unless the security interest granted and
      perfected in such account will continue to be perfected in such
      investment, in either case without any further action by any Person.

            (c) The Indenture Trustee will not in any way be held liable by
      reason of any insufficiency in any of the Trust Accounts resulting from
      any loss on any Eligible Investment included therein except for losses
      attributable to the Indenture Trustee's negligence or bad faith or its
      failure to make payments on such Eligible Investments issued by the
      Indenture Trustee, in its commercial capacity as principal obligor and not
      as trustee, in accordance with their terms.

            (d) If (i) the Servicer fails to give investment directions in
      writing for any funds on deposit in the Trust Accounts to the Indenture
      Trustee by 1:00 p.m. New York City Time (or such other time as may be
      agreed by the Issuer and Indenture Trustee) on any Business Day; or (ii) a
      Default or Event of Default has occurred and is continuing with respect to
      the Notes but the Notes have not been declared due and payable, or, if
      such Notes will have been declared due and payable following an Event of
      Default, amounts collected or receivable from the Trust Property are being
      applied as if there had not been such a declaration; then the Indenture
      Trustee will, to the fullest extent practicable, invest and reinvest funds
      in the Trust Accounts in the investment described in clause (d) of the
      definition of Eligible Investments.

            (e) (i) The Indenture Trustee will possess all right, title and
      interest in all funds on deposit from time to time in the Trust Accounts
      and in all proceeds thereof and all such funds, investments, proceeds and
      income will be part of the Owner Trust Estate. Except as otherwise
      provided herein, the Trust Accounts will be under the sole dominion and
      control of the Indenture Trustee for the benefit of the Noteholders and
      the Insurer. If, at any time, any of the Trust Accounts ceases to be an
      Eligible Deposit Account, the Indenture Trustee (or the Servicer on its
      behalf) will within ten Business Days (or such longer period as to which
      each Rating Agency and the Insurer may consent) establish a new Trust
      Account as an Eligible Deposit Account and will transfer any cash and/or
      any investments to such new Trust Account. In connection with the
      foregoing, the Servicer agrees that, in the event that any of the Trust
      Accounts are not accounts with the Indenture Trustee, the Servicer will
      notify the Indenture Trustee in writing promptly upon any of such Trust
      Accounts ceasing to be an Eligible Deposit Account.

                  (ii) With respect to the Trust Account Property, the Indenture
Trustee agrees that:

                        (A) any Trust Account Property that is held in deposit
accounts will be held solely in the Eligible Deposit Accounts; and, except as
otherwise provided herein, each such Eligible Deposit Account will be subject to
the exclusive custody and control of the Indenture Trustee, and the Indenture
Trustee will have sole signature authority with respect thereto;

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                        (B) any Trust Account Property that constitutes
"securities entitlements" will be delivered to the Indenture Trustee in
accordance with the UCC and will be held, pending maturity or disposition,
solely by the Indenture Trustee or a securities intermediary (as such term is
defined in Section 8-102(14) of the UCC) acting solely for the Indenture
Trustee; and

                        (C) the "securities intermediary's jurisdiction," for
purposes of Section 8-110 of the UCC, shall be the State of New York.

            (f) The Servicer will have the power, revocable by the Insurer or,
      with the consent of the Insurer, by the Indenture Trustee, to instruct the
      Indenture Trustee to make withdrawals and payments from the Trust Accounts
      for the purpose of permitting the Servicer and the Indenture Trustee to
      carry out its respective duties hereunder.

      Section 5.2 [Reserved].

      Section 5.3 Certain Reimbursements to the Servicer. The Servicer will be
entitled to be reimbursed from amounts on deposit in the Collection Account with
respect to a Collection Period for amounts previously deposited in the
Collection Account but later determined by the Servicer to have resulted from
mistaken deposits or postings or checks returned for insufficient funds. To the
extent that such amounts are owed to the Processing Bank, the Servicer will
cause such amounts to be returned to the Processing Bank. The amount to be
reimbursed hereunder will be paid to the Servicer on the related Distribution
Date pursuant to Section 5.7(a)(i) upon certification by the Servicer of such
amounts and the provision of such information to the Indenture Trustee and the
Insurer as may be necessary in the opinion of the Insurer to verify the accuracy
of such certification; provided, however, that the Servicer must provide such
clarification within 12 months of such mistaken deposit, posting, or returned
check. In the event that the Insurer has not received evidence satisfactory to
it of the Servicer's entitlement to reimbursement pursuant to this Section 5.3,
the Insurer will (unless an Insurer Default has occurred and is continuing) give
the Indenture Trustee notice in writing to such effect, following receipt of
which the Indenture Trustee will not make a distribution to the Servicer in
respect of such amount pursuant to Section 5.7, or if the Servicer prior thereto
has been reimbursed pursuant to Section 5.7, the Indenture Trustee will withhold
such amounts from amounts otherwise distributable to the Servicer on the next
succeeding Distribution Date. The Servicer will additionally be entitled to
receive from amounts on deposit in the Collection Account with respect to a
Collection Period any amounts paid by Obligors that were collected in the
Lockbox Account but that do not relate to (i) principal and interest payments
due on the Receivables and (ii) any Supplemental Servicing Fees.

      Section 5.4 Application of Collections. All collections for the Collection
Period will be applied by the Servicer as follows:

            With respect to each Receivable (other than a Purchased Receivable),
payments by or on behalf of the Obligor (other than Supplemental Servicing Fees
with respect to such Receivable, to the extent collected) will be applied to
interest and principal in accordance with the Simple Interest Method.

            All amounts collected that are payable to the Servicer as
Supplemental Servicing Fees hereunder will be deposited in the Collection
Account and paid to the Servicer in accordance with Section 5.7(a).

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      Section 5.5 Spread Account.

            (a) On or prior to the Closing Date, the Depositor will deposit an
      amount equal to the Spread Account Initial Deposit into the Spread Account
      from the proceeds of the Notes. On each Distribution Date, to the extent
      of funds available therefor pursuant to the priority of payments, amounts
      will be deposited into the Spread Account in accordance with Section
      5.7(a)(ix) until the amount on deposit therein is equal to the Spread
      Account Requirement.

            (b) In the event that the Servicer's Certificate with respect to any
      Determination Date states that there is a Spread Account Draw Amount, then
      on the related Distribution Date, the Indenture Trustee will withdraw such
      Spread Account Draw Amount from the Spread Account to the extent of funds
      on deposit therein and deposit such amount into the Collection Account for
      distribution in accordance with Section 5.7(a).

            (c) After considering all required distributions made on a
      Distribution Date, amounts on deposit in the Spread Account on that
      Distribution Date that are in excess of the Spread Account Requirement for
      that Distribution Date will be applied by the Indenture Trustee in
      accordance with Section 5.7(a)(vii), then 5.7(a)(x) through (xii).

      Section 5.6 Additional Deposits.

            (a) The Servicer and Triad, as applicable, will deposit or cause to
      be deposited in the Collection Account on the Determination Date on which
      such obligations are due the aggregate Purchase Amount with respect to
      Purchased Receivables.

            (b) The proceeds of any sale of the assets of the Trust described in
      Section 10.1 will be deposited in the Collection Account on the date of
      such sale.

            (c) If the Indenture Trustee receives any Additional Funds Available
      of the type described in clause (2) of the definition thereof it will
      deposit them into the Collection Account and on each Distribution Date it
      will transfer any such funds to the Note Distribution Account.

      Section 5.7 Distributions.

            (a) On each Distribution Date, unless payments are required to be
      made in accordance with Article V of the Indenture, the Indenture Trustee
      will (based solely on the information contained in the Servicer's
      Certificate delivered with respect to the related Determination Date)
      distribute the following amounts from Available Funds on deposit in the
      Collection Account unless otherwise specified, to the extent of the
      sources of funds stated to be available therefor, and in the following
      order of priority:

                  (i) to the Servicer, the Servicing Fee for the related
Collection Period, and, to the extent the Servicer has not reimbursed itself or
to the extent not retained by the Servicer, other amounts relating to mistaken
deposits, postings or checks returned for insufficient funds, and to the extent
available, any amounts paid by the Obligors during the preceding Collection
Period that were collected in the Collection Account but that do not relate to
principal payments or interest payments, such as late fees, prepayment charges
and other administrative charges;

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                  (ii) to the Owner Trustee, the Indenture Trustee and the
Backup Servicer, the Owner Trustee Fee, the Indenture Trustee Fee, and any
accrued and unpaid servicer transition expenses of any incoming servicer then
due to the Indenture Trustee, the Backup Servicer or any other successor
servicer, up to a maximum amount of $200,000 in the aggregate;

                  (iii) to the Note Distribution Account, the Class A
Noteholders' Interest Distributable Amount;

                  (iv) to the Note Distribution Account, to make a payment of
principal on the Class A Notes to the extent necessary to reduce the Class A
Note principal balance to the Pool Balance;

                  (v) to the Note Distribution Account, to make a payment of the
remaining principal balance of any of the Class A Notes on their Final Scheduled
Distribution Date;

                  (vi) to the Insurer, any unpaid amounts owed to the Insurer
under the Insurance Agreement with respect to unpaid Premiums and unreimbursed
Insured Payments;

                  (vii) to the Insurer, so long as no Insurer Default has
occurred and is continuing, any other unpaid amounts owed to the Insurer under
the Insurance Agreement;

                  (viii) to the Note Distribution Account, to make a payment of
the Class A Noteholders' Principal Distributable Amount;

                  (ix) to the Spread Account, any amount required to increase
the amount in the Spread Account to the Spread Account Requirement; (x) to the
Insurer, if an Insurer Default has occurred or is continuing, the amounts
described under clause (vii) above;

                  (xi) to the Note Distribution Account, to make a payment of
the Class A Noteholders' Accelerated Principal Amount, provided that if a
Cumulative Net Loss Trigger Event or an Insurance Agreement Event of Default has
occurred and is continuing, all remaining Available Funds shall be applied to
pay principal on the Class A Notes until they have been paid in full, in either
case, for payment to the Class A Noteholders; and

                  (xii) to the Note Distribution Account, to make a payment of
all remaining amounts to the Certificateholders.

            (b) On each Distribution Date, the Indenture Trustee will (based
      solely on the information contained in the Servicer's Certificate
      delivered with respect to the related Determination Date, unless the
      Insurer has notified the Indenture Trustee in writing of any errors or
      deficiencies with respect thereto) distribute from the Collection Account
      the Additional Funds Available, if any, plus the Policy Claim Amount, if
      any, in each case then on deposit in the Collection Account, and deposit
      in the Note Distribution Account any excess of the Scheduled Payments (as
      defined in the Note Policy) due on such Distribution Date over the amount
      of all Available Funds previously deposited in the Note Distribution
      Account with respect to the related Distribution Date, which amount will
      be applied solely to the payment of amounts then due and unpaid on the
      Class A Notes in accordance with the priorities set forth in Section
      5.8(a).

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            (c) In the event that the Collection Account is maintained with an
      institution other than the Indenture Trustee, the Servicer will instruct
      and cause such institution to make all deposits and distributions pursuant
      to Sections 5.7(a) and 5.7(b) on the related Distribution Date.

      Section 5.8 Note Distribution Account.

            (a) On each Distribution Date (based solely on the information
      contained in the Servicer's Certificate) the Indenture Trustee will
      distribute all amounts on deposit in the Note Distribution Account to
      Noteholders in respect of the Notes to the extent of amounts due and
      unpaid on the Notes for principal and interest in the following amounts:

            - From amounts transferred pursuant to Section 5.7(a)(iii), accrued
      and unpaid interest on the Class A Notes; provided that if such amount is
      insufficient to pay the entire amount of accrued and unpaid interest then
      due on each Class of Class A Notes, the amount in the Note Distribution
      Account will be applied to the payment of such interest on each Class of
      Class A Notes pro rata on the basis of the amount of accrued and unpaid
      interest due on each Class of Class A Notes.

            - From amounts transferred pursuant to Section 5.7(a)(iv), (v),
      (viii), and (xi), in the following order of priority:

                  (1) to the holders of the Class A-1 Notes, the total amount
            paid out on each Distribution Date until the outstanding principal
            balance of the Class A-1 Notes has been reduced to zero;

                  (2) to the holders of the Class A-2 Notes, the total amount
            paid out on each Distribution Date until the outstanding principal
            balance of the Class A-2 Notes has been reduced to zero;

                  (3) to the holders of the Class A-3 Notes, the total amount
            paid out on each Distribution Date until the outstanding principal
            balance of the Class A-3 Notes has been reduced to zero; and

                  (4) to the holders of the Class A-4 Notes, the total amount
            paid out on each Distribution Date until the outstanding principal
            balance of the Class A-4 Notes is reduced to zero.

provided, that after the acceleration of the Notes following the occurrence of
an Event of Default under the Indenture, payments of principal on the Notes will
be made, instead of as provided above after payment of all amounts owing to the
Indenture Trustee pursuant to Section 6.7 of the Indenture, first to the Class
A-1 Notes until the Class A-1 Notes have been paid in full, and second to the
other Classes of Class A Notes pro rata until they are paid in full.

            (b) On each Distribution Date, the Indenture Trustee will post on
      its website at www.jpmorgan.com/sfr, which posting will be accessible to
      each Noteholder and to the Insurer, the statement provided to the
      Indenture Trustee by the Servicer pursuant to Section 5.10 hereof on such
      Distribution Date.

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<PAGE>

            (c) In the event that any withholding tax is imposed on the Trust's
      payment (or allocations of income) to a Noteholder, such tax will reduce
      the amount otherwise distributable to the Noteholder in accordance with
      this Section 5.8. The Indenture Trustee is hereby authorized and directed
      to retain from amounts otherwise distributable to the Noteholders
      sufficient funds for the payment of any withholding tax attributable to
      the Trust (but such authorization will not prevent the Indenture Trustee
      from contesting any such tax in appropriate proceedings, and withholding
      payment of such tax, if permitted by law, pending the outcome of such
      proceedings). The amount of any withholding tax imposed with respect to a
      Noteholder will be treated as cash distributed to such Noteholder at the
      time it is withheld by the Trust and remitted to the appropriate taxing
      authority. If there is a possibility that withholding tax is payable with
      respect to a distribution (such as a distribution to a non-U.S.
      Noteholder), the Indenture Trustee may in its sole discretion withhold
      such amounts in accordance with this Section 5.8(c). In the event that a
      Noteholder wishes to apply for a refund of any such withholding tax, the
      Indenture Trustee will reasonably cooperate with such Noteholder in making
      such claim so long as such Noteholder agrees to reimburse the Indenture
      Trustee for any out-of-pocket expenses (including legal fees and expenses)
      incurred.

            (d) Distributions required to be made to Noteholders on any
      Distribution Date will be made to each Noteholder of record on the related
      Record Date either by wire transfer, or by check mailed to such
      Noteholder, as provided in Section 2.7 of the Indenture.

            (e) Subject to Section 5.1 and this Section 5.8, monies received by
      the Indenture Trustee hereunder need not be segregated in any manner
      except to the extent required by law and may be deposited under such
      general conditions as may be prescribed by law, and the Indenture Trustee
      will not be liable for any interest thereon.

      Section 5.9 Reserved.

      Section 5.10 Statements to Noteholders.

            (a) On each Distribution Date, the Indenture Trustee will make
      available to each Noteholder and to the Insurer and the Rating Agencies a
      statement setting forth at least the following information (which will be
      included in the Servicer's Certificate delivered to the Indenture Trustee)
      to the extent applicable:

                  (i) the amount of such distribution allocable to principal of
each Class of Notes;

                  (ii) the amount of such distribution allocable to interest on
or with respect to each Class of Notes;

                  (iii) the amount of such distribution payable out of amounts
withdrawn from the Spread Account or pursuant to a claim on the Note Policy;

                  (iv) the Pool Balance as of the close of business on the last
day of the preceding Collection Period;

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<PAGE>

                  (v) the aggregate outstanding principal amount of each Class
of the Notes and the Note Pool Factor for each such Class after giving effect to
payments allocated to principal reported under Section 5.10(a)(i);

                  (vi) the amount of the Servicing Fee paid to the Servicer with
respect to the related Collection Period and/or due but unpaid with respect to
such Collection Period or prior Collection Periods, as the case may be;

                  (vii) the Class A Noteholders' Interest Carryover Amount and
the Class A Noteholders' Principal Carryover Amount, if any;

                  (viii) the Delinquency Rate with respect to such Distribution
Date;

                  (ix) the Net Loss Rate and Cumulative Net Loss Ratio with
respect to such Distribution Date; and

                  (x) the aggregate Purchase Amounts for Receivables, if any,
that were repurchased by Triad or the Servicer on or prior to the related
Determination Date.

Each amount set forth pursuant to Section 5.10(a)(i), (ii), (iii), (vi) and
(vii) will be expressed as a dollar amount per $1,000 of the initial principal
balance of the Notes (or Class thereof).

            (b) The Indenture Trustee will make the statements referred to in
      Section 5.10(a) (and, at its option, any additional files containing the
      same information in an alternative format) available each month via the
      Indenture Trustee's internet website, which is presently located at
      www.jpmorgan.com/sfr. Persons that are entitled to receive such statements
      but are unable to use the above website are entitled to have a paper copy
      mailed to them via first class mail by calling the Indenture Trustee at
      (212) 623-5600. The Indenture Trustee will have the right to change the
      way the statements referred to in Section 5.10(a) are distributed in order
      to make such distribution more convenient and/or more accessible to the
      parties entitled to receive such statements. The Indenture Trustee will
      provide notification of any such change to all parties entitled to receive
      such statements in the manner described in Section 12.3, Section 11.4 of
      the Indenture or Section 11.5 of the Indenture, as appropriate.

      Section 5.11 Optional Deposits by the Insurer. The Insurer will at any
time, and from time to time, with respect to a Distribution Date, have the
option (but will not be required, except in accordance with the terms of the
Note Policy) to deliver an Insurer Optional Deposit to the Indenture Trustee for
deposit into the Collection Account.

                                   ARTICLE VI

                                 The Note Policy

      Section 6.1 Claims Under Note Policy.

            (a) In the event that the Servicer's Certificate with respect to any
      Determination Date states that there is a Policy Claim Amount, the
      Indenture Trustee will furnish to the Insurer no later than 12:00 noon New
      York City time on the Business Day after the related Determination Date a
      completed Notice (as attached as a form to the Note Policy) specifying the
      amount of the Policy Claim Amount, provided, that if such Notice is
      received after 12:00

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<PAGE>

      noon, New York City time, on such Business Day, it will be deemed to be
      received before 12:00 noon, New York City time, on the following Business
      Day. If any such Notice is not in proper form or is otherwise insufficient
      for the purpose of making a claim under the Note Policy, it will be deemed
      not to have been received for purposes of making such claim, and the
      Insurer will promptly so advise the Indenture Trustee in writing and the
      Indenture Trustee may submit an amended or corrected Notice. If such an
      amended or corrected Notice is in proper form and is otherwise sufficient
      for the purpose of making a claim under the Note Policy, it will be deemed
      to have been timely received on the Business Day of such resubmission;
      provided, that if such notice is received after 12:00 noon, New York City
      time, it shall be deemed to be received before 12:00 noon, New York City
      time, on the following Business Day.

            (b) Any notice delivered by the Indenture Trustee to the Insurer
      pursuant to Section 6.1(a) will specify the Policy Claim Amount claimed
      under the Note Policy and will constitute a "Notice" under the Note
      Policy. In accordance with the provisions of the Note Policy, the Insurer
      is required to pay to the Indenture Trustee the Policy Claim Amount
      properly claimed thereunder by 12:00 noon, New York City time, on the
      later of (i) the Distribution Date on which the related Policy Claim
      Amount is due for payment under the Indenture or (ii) the second Business
      Day following actual receipt in New York, New York on a Business Day by
      the Insurer of a Notice, appropriately completed and executed by the
      Indenture Trustee; provided, that if such Notice is received after 12:00
      noon, New York City time, on such Business Day, it will be deemed to be
      received before 12:00 noon, New York City time, on the following Business
      Day. The Indenture Trustee will deposit amounts paid by the Insurer
      pursuant to a claim submitted under this Section 6.1 into the Note
      Distribution Account for payment to Holders (as defined in the Note
      Policy) on the related Distribution Date (or, if funds are received from
      the Insurer after the related Distribution Date, for payment to Holders
      promptly after such receipt). Any payment made by the Insurer under the
      Note Policy will be applied solely to the payment of the Class A Notes,
      and for no other purpose. Amounts payable in respect of any Policy Claim
      Amounts due under the Note Policy, unless otherwise stated therein, will
      be distributed by the Insurer to, or at the direction of, the Indenture
      Trustee, by wire transfer of immediately available funds. The Insurer's
      payment obligations under the Note Policy with respect to particular
      Policy Claim Amounts will be discharged to the extent funds equal to the
      applicable Policy Claim Amounts are paid by the Insurer to, or at the
      direction of, the Indenture Trustee in accordance with the Indenture
      Trustee's request, whether or not such funds are properly applied by the
      Indenture Trustee. Payment of Policy Claim Amounts will be made only at
      the time set forth in the Note Policy, and no accelerated Insured Payments
      (as defined in the Note Policy) will be made except to the extent that the
      Insurer has specified an earlier date for payment at its sole option. The
      Note Policy does not insure against loss of any prepayment or other
      acceleration payment which at any time may become due in respect of any
      Insured Obligation (as defined in the Note Policy), other than at the sole
      option of the Insurer, nor against any risk other than Nonpayment (as
      defined in the Note Policy), including failure of the Indenture Trustee to
      remit any Policy Claim Amounts or Scheduled Payments due to Holders.
      Notwithstanding anything to the contrary set forth in the Note Policy, in
      no event will the aggregate amount paid by the Insurer thereunder exceed
      the Maximum Insured Amount (as defined in the Note Policy).

            (c) The Indenture Trustee will (i) receive as attorney-in-fact of
      each Holder any Policy Claim Amount from the Insurer and (ii) deposit the
      same in the Note Distribution

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<PAGE>

      Account for distribution to Noteholders. Any and all Policy Claim Amounts
      disbursed by the Indenture Trustee from claims made under the Note Policy
      will not be considered payment by the Trust with respect to such Class A
      Notes, and will not discharge the obligations of the Trust with respect
      thereto. The Insurer will, upon any payment pursuant to the Note Policy,
      in furtherance and not in limitation of its equitable right of subrogation
      and its rights under the Insurance Agreement, to the extent it makes any
      payment with respect to the Class A Notes, become subrogated to the rights
      of any Holders to receive any and all amounts due in respect of the
      Insured Obligations as to which such payment was made. The Insurer will be
      a co-beneficiary of the Indenture Trustee's lien under the Indenture.
      Subject to and conditioned upon any payment with respect to the Class A
      Notes by or on behalf of the Insurer, the Indenture Trustee will assign to
      the Insurer all rights to the payment of interest or principal with
      respect to the Notes which are then due for payment to the extent of all
      payments made by the Insurer, and the Insurer may exercise any option,
      vote, right, power or the like with respect to the Notes to the extent
      that it has made payment pursuant to the Note Policy. To evidence such
      subrogation, the Note Registrar will note the Insurer's rights as subrogee
      upon the register of Holders. The foregoing subrogation will in all cases
      be subject to the rights of the Holders to receive all Scheduled Payments
      (as defined in the Note Policy) in respect of the Class A Notes.

            (d) The Indenture Trustee will keep a complete and accurate record
      of all funds deposited into the Note Distribution Account with respect to
      the Note Policy and the allocation of such funds to payment of interest on
      and principal paid in respect of any Class A Note. The Insurer will have
      the right to inspect such records at reasonable times upon one Business
      Day's prior notice to the Indenture Trustee.

            (e) Only the Indenture Trustee on behalf of the Holders will be
      entitled to make a claim for Policy Claim Amounts and Preference Amounts
      under the Note Policy. Notwithstanding any other provision of this
      Agreement or any Basic Document, the Noteholders are not entitled to
      institute proceedings directly against the Insurer.

      Section 6.2 Preference Claims Under Note Policy.

            (a) In the event that the Indenture Trustee has received a certified
      copy of a final, nonappealable order of an appropriate court or other body
      exercising jurisdiction that any interest on or principal of the Class A
      Notes which has become due for payment under the Indenture or this
      Agreement, the nonpayment of which would have been covered by the Note
      Policy, and which was made to a Holder by or on behalf of the Issuer has
      been deemed a preferential transfer and recoverable, or theretofore
      recovered, from such Holder pursuant to Title 11 of the United States Code
      in accordance with an Order (such amount, a "Preference Amount"), the
      Indenture Trustee will so notify the Insurer, will comply with the
      provisions of the Note Policy to obtain payment by the Insurer of such
      avoided payment, and will, at the time it provides notice to the Insurer,
      notify Holders by mail that, in the event that any Holder's payment is so
      recoverable, such Holder will be entitled to payment pursuant to the terms
      of the Note Policy. The Insurer will pay any Preference Amount when due to
      be paid pursuant to an Order (as defined below), but in any event no
      earlier than the fifth Business Day following actual receipt by the
      Insurer of (i) a certified copy of a final, nonappealable order of a court
      or other body exercising jurisdiction to the effect that a Holder is
      required to return such Preference Amount paid during the term of the Note
      Policy because the payments of such amounts were avoided as a preferential
      transfer or otherwise rescinded or required to

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<PAGE>

      be restored by the Indenture Trustee or such Holder (the "Order"), (ii) an
      opinion of counsel satisfactory to the Insurer stating that the Order has
      been entered and is final and not subject to any stay, (iii) an
      assignment, in form and substance satisfactory to the Insurer, duly
      executed and delivered by such Holder and the Indenture Trustee,
      irrevocably assigning to the Insurer all rights and claims of the
      Indenture Trustee and such Holder relating to or arising under the
      Indenture or otherwise with respect to such Preference Amount, (iv)
      appropriate instruments in form satisfactory to the Insurer to effect the
      appointment of the Insurer as agent for such Holder in any legal
      proceeding related to such Preference Amount, and (v) a Notice
      appropriately completed and executed by the Indenture Trustee in the form
      attached as Exhibit B to the Note Policy; provided, that (I) if such
      documents are received by the Insurer after 12:00 noon, New York City
      time, on such Business Day, they will be deemed to be received before
      12:00 noon, New York City time, on the following Business Day and (II) the
      Insurer will not be obligated to pay any Preference Amount in respect of
      principal (other than the Class A Noteholders' Parity Deficit Amount)
      prior to the Final Scheduled Distribution Date for the relevant class of
      Class A Notes. Such payment will be disbursed to the receiver,
      conservator, debtor-in-possession or trustee in bankruptcy named in the
      Order, and not to the Indenture Trustee or the Holder directly, unless the
      Indenture Trustee or the relevant Holder has made a payment of the
      Preference Amounts to the court or such receiver, conservator,
      debtor-in-possession or trustee in bankruptcy named in the Order, in which
      case the Insurer will pay the Indenture Trustee, or as directed by the
      Indenture Trustee, to the extent of the payment of the Preference Amount,
      subject to the delivery of (a) the items referred to in clauses (i), (ii),
      (iii), (iv) and (v) above to the Insurer and (b) evidence satisfactory to
      the Insurer that payment has been made to such court or receiver,
      conservator, debtor-in-possession or trustee in bankruptcy named in the
      Order; provided, further, that any Preference Amount that constitutes
      interest will be limited to the amount of interest on the outstanding
      principal amount of the Class A Notes (calculated at the Interest Rate for
      the relevant class of Class A Notes) accrued as of the last day of the
      applicable interest accrual period with respect to the Class A Notes and
      will not, in any event, include any interest on the Class A Notes accrued
      after such date or any interest on such interest amount; provided,
      further, that in no event will the Insurer be obligated to make any
      payment (i) in respect to any Preference Amount to the extent that such
      payment, when added to all prior payments of Policy Claim Amounts, would
      exceed the Maximum Insured Amount (as defined in the Note Policy) or (ii)
      prior to the time the Insurer would have been required to pay a Policy
      Claim Amount pursuant to Section 3 of the Policy.

            (b) The Indenture Trustee will promptly notify the Insurer of any
      proceeding or the institution of any action (of which a Responsible
      Officer of the Indenture Trustee has actual knowledge) seeking the
      avoidance as a preferential transfer under applicable bankruptcy,
      insolvency, receivership, rehabilitation or similar law (a "Note
      Preference Claim") of any payment made to a Holder that has been deemed a
      preferential transfer and recoverable, or theretofore recovered, from such
      Holder pursuant to Title 11 of United States Code in accordance with an
      Order. Each Holder, by its purchase of Class A Notes, and the Indenture
      Trustee hereby agree that so long as no Insurer Default has occurred and
      is continuing, the Insurer may at any time during the continuation of any
      proceeding relating to a Note Preference Claim direct all matters relating
      to such Note Preference Claim, including (i) the direction of any appeal
      of any order relating to any Note Preference Claim and (ii) the posting of
      any surety, supersedeas or performance bond pending any such appeal at the
      expense of the Insurer, but subject to reimbursement as provided in the
      Insurance Agreement. In addition, and without limitation of the foregoing,
      as set forth in Section 6.1(c), the Insurer

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<PAGE>

      will be subrogated to, and each Holder and the Indenture Trustee hereby
      delegate and assign, to the fullest extent permitted by law, the rights of
      the trustee and each Holder in the conduct of any proceeding with respect
      to a Note Preference Claim, including all rights of any party to an
      adversary proceeding action with respect to any court order issued in
      connection with any such Note Preference Claim.

      Section 6.3 Surrender of Note Policy. Indenture Trustee will surrender the
Note Policy to the Insurer for cancellation upon the expiration of such policy
in accordance with the terms thereof.

                                   ARTICLE VII

                                  The Depositor

      Section 7.1 Representations of Depositor. The Depositor makes the
following representations on which the Insurer will be deemed to have relied in
executing and delivering the Note Policy and on which the Issuer is deemed to
have relied in acquiring the Receivables and on which the Indenture Trustee and
Backup Servicer may rely. The representations are true and correct as of the
execution and delivery of this Agreement and as of the Closing Date, in the case
of Receivables, and will survive the sale of the Receivables to the Issuer and
the pledge thereof to the Indenture Trustee pursuant to the Indenture.

            (a) Organization and Good Standing. The Depositor has been duly
      organized and is validly existing as a limited liability company in good
      standing under the laws of the State of Delaware, with power and authority
      to own its properties and to conduct its business as such properties are
      currently owned and such business is currently conducted, and had at all
      relevant times, and now has, limited liability company power, authority
      and legal right to acquire, own and sell the Receivables and the Other
      Conveyed Property transferred to the Trust.

            (b) Due Qualification. The Depositor is duly qualified to do
      business as a foreign limited liability company in good standing and has
      obtained all necessary licenses and approvals in all jurisdictions where
      the failure to do so would materially and adversely affect the Depositor's
      ability to transfer the Receivables and the Other Conveyed Property to the
      Trust pursuant to this Agreement, or the validity or enforceability of the
      Receivables and the Other Conveyed Property or to perform the Depositor's
      obligations under the Basic Documents to which it is a party.

            (c) Power and Authority. The Depositor has the power and authority
      to execute and deliver the Basic Documents to which it is a party and to
      carry out their respective terms; the Depositor has full power and
      authority to sell and assign the Receivables and the Other Conveyed
      Property to be sold and assigned to and deposited with the Trust by it and
      has duly authorized such sale and assignment to the Trust by all necessary
      action; and the execution, delivery and performance of the Basic Documents
      to which it is a party have been duly authorized by the Depositor by all
      necessary action.

            (d) Valid Sale, Binding Obligations. This Agreement effects a valid
      sale, transfer and assignment of the Receivables and the Other Conveyed
      Property, enforceable against the Depositor and creditors of and
      purchasers from the Depositor; and the Basic Documents to which it is a
      party, when duly executed and delivered, will constitute legal, valid and
      binding

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<PAGE>

      obligations of the Depositor enforceable in accordance with their
      respective terms, except as enforceability may be limited by bankruptcy,
      insolvency, reorganization or other similar laws affecting the enforcement
      of creditors' rights generally and by equitable limitations on the
      availability of specific remedies, regardless of whether such
      enforceability is considered in a proceeding in equity or at law.

            (e) No Violation. The consummation of the transactions contemplated
      by the Basic Documents and the fulfillment of the terms of the Basic
      Documents to which the Depositor is a party will not conflict with, result
      in any breach of any of the terms and provisions of or constitute (with or
      without notice, lapse of time or both) a default under the limited
      liability company agreement or operating agreement of the Depositor, or
      any material indenture, agreement, mortgage, deed of trust or other
      instrument to which the Depositor is a party or by which it is bound, or
      result in the creation or imposition of any Lien upon any of its
      properties pursuant to the terms of any such indenture, agreement,
      mortgage, deed of trust or other instrument, other than the Basic
      Documents, or violate any law, order, rule or regulation applicable to the
      Depositor of any court or of any federal or state regulatory body,
      administrative agency or other governmental instrumentality having
      jurisdiction over the Depositor or any of its properties.

            (f) No Proceedings. There are no proceedings or investigations
      pending or, to the Depositor's best knowledge, threatened against the
      Depositor, before any court, regulatory body, administrative agency or
      other tribunal or governmental instrumentality having jurisdiction over
      the Depositor or its properties (A) asserting the invalidity of any of the
      Basic Documents, (B) seeking to prevent the issuance of the Securities or
      the consummation of any of the transactions contemplated by this Agreement
      or any of the Basic Documents, or (C) seeking any determination or ruling
      that might materially and adversely affect the performance by the
      Depositor of its obligations under, or the validity or enforceability of,
      any of the Basic Documents.

            (g) True Sale. The Receivables are being transferred with the
      intention of removing them from the Depositor's estate pursuant to Section
      541 of the Bankruptcy Code, as the same may be amended from time to time.

      Section 7.2 Organizational Existence. During the term of this Agreement,
the Depositor will keep in full force and effect its existence, rights and
franchises as a limited liability company under the laws of Delaware and will
obtain and preserve its qualification to do business in each jurisdiction in
which such qualification is or will be necessary to protect the validity and
enforceability of the Basic Documents and each other instrument or agreement
necessary or appropriate to the proper administration of this Agreement and the
transactions contemplated hereby.

      Section 7.3 Liability of Depositor. The Depositor will be liable in
accordance herewith only to the extent of the obligations specifically
undertaken by the Depositor under this Agreement.

      Section 7.4 Merger or Consolidation of, or Assumption of the Obligations
of, Depositor. Any Person (a) into which the Depositor may be merged or
consolidated, (b) which may result from any merger or consolidation to which the
Depositor will be a party or (c) which may succeed to the properties and assets
of the Depositor substantially as a whole, which Person in any of the foregoing
cases executes an agreement of assumption to perform every obligation of the
Depositor under this Agreement, will be the successor to the Depositor hereunder
without the execution or filing of any

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document or any further act by any of the parties to this Agreement; provided,
however, that the Depositor will have delivered to the Owner Trustee, the Backup
Servicer, the Indenture Trustee and the Insurer an Opinion of Counsel stating
that, in the opinion of such counsel, either (A) all financing statements and
continuation statements and amendments thereto have been executed and filed that
are necessary fully to preserve and protect the interest of the Issuer and the
Indenture Trustee, respectively, in the Receivables and reciting the details of
such filings or (B) no such action will be necessary to preserve and protect
such interest.

      Section 7.5 Limitation on Liability of Depositor and Others. The Depositor
and any director or officer or employee or agent of the Depositor may rely in
good faith on the advice of counsel or on any document of any kind, prima facie
properly executed and submitted by any Person respecting any matters arising
under any Basic Document. The Depositor will not be under any obligation to
appear in, prosecute or defend any legal action that will not be incidental to
its obligations under this Agreement, and that in its opinion may involve it in
any expense or liability.

      Section 7.6 Ownership of the Certificates or Notes. The Depositor may in
its individual or any other capacity become the owner or pledgee of Certificates
or Notes with the same rights as it would have if it were not the Depositor,
except as expressly provided herein or in any Basic Document. Notes or
Certificates so owned by the Depositor will have an equal and proportionate
benefit under the provisions of the Basic Documents, without preference,
priority, or distinction as among all of the Notes or Certificates.

                                  ARTICLE VIII

                                  The Servicer

      Section 8.1 Representations of Servicer. The Servicer makes the following
representations on which the Insurer is deemed to have relied in executing and
delivering the Note Policy and on which the Issuer is deemed to have relied in
acquiring the Receivables and on which the Indenture Trustee and the Backup
Servicer may rely. The representations are true and correct as of the execution
and delivery of this Agreement and as of the Closing Date, in the case of the
Receivables, and will survive the sale of the Receivables to the Issuer and the
pledge thereof to the Indenture Trustee pursuant to the Indenture.

            (a) Representations and Warranties. The representations and
      warranties set forth on the Schedule of Representations attached hereto as
      Schedule B are true and correct;

            (b) Organization and Good Standing. The Servicer has been duly
      organized and is validly existing and in good standing under the laws of
      California, with corporate power, authority and legal right to own its
      properties and to conduct its business as such properties are currently
      owned and such business is currently conducted, and had at all relevant
      times, and now has, power, authority and legal right to enter into and
      perform its obligations under the Basic Documents to which it is a party;

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

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<PAGE>

            (d) Power and Authority. The Servicer has the corporate power and
      authority to execute and deliver the Basic Documents to which it is a
      party and to carry out their respective terms, and the execution, delivery
      and performance of the Basic Documents to which it is a party have been
      duly authorized by the Servicer by all necessary corporate action;

            (e) Binding Obligation. The Basic Documents to which the Servicer is
      a party constitute legal, valid and binding obligations of the Servicer
      enforceable in accordance with their respective terms, except as
      enforceability may be limited by bankruptcy, insolvency, reorganization,
      or other similar laws affecting the enforcement of creditors' rights
      generally and by equitable limitations on the availability of specific
      remedies, regardless of whether such enforceability is considered in a
      proceeding in equity or at law;

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

            (g) No Proceedings. There are no proceedings or investigations
      pending or, to the Servicer's best knowledge, threatened against the
      Servicer, before any court, regulatory body, administrative agency or
      other tribunal or governmental instrumentality having jurisdiction over
      the Servicer or its properties (A) asserting the invalidity of any of the
      Basic Documents, (B) seeking to prevent the issuance of the Securities or
      the consummation of any of the transactions contemplated by any of the
      Basic Documents, or (C) seeking any determination or ruling that might
      materially and adversely affect the performance by the Servicer of its
      obligations under, or the validity or enforceability of, any of the Basic
      Documents or (D) seeking to adversely affect the federal income tax or
      other federal, state or local tax attributes of the Securities;

            (h) No Consents. The Servicer is not required to obtain the consent
      of any other party or any consent, license, approval or authorization, or
      registration or declaration with, any governmental authority, bureau or
      agency in connection with the execution, delivery, performance, validity
      or enforceability of this Agreement which has not already been obtained.

      Section 8.2 Liability of Servicer; Indemnities.

            (a) The Servicer (in its capacity as such) will be liable hereunder
      only to the extent of the obligations in this Agreement specifically
      undertaken by the Servicer and the representations made by the Servicer.

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<PAGE>

            (b) The Servicer will defend, indemnify and hold harmless the Trust,
      the Depositor, the Indenture Trustee, the Owner Trustee, the Backup
      Servicer, the Insurer, their respective officers, directors, agents and
      employees, and the Noteholders from and against any and all costs,
      expenses, losses, damages, claims and liabilities, including reasonable
      fees and expenses of counsel and expenses of litigation (i) arising out of
      or resulting from the use, ownership or operation by the Servicer or any
      Affiliate thereof of any Financed Vehicle or (ii) to the extent that such
      cost, expense, loss, claim, damage, or liability arose out of, or was
      imposed upon the Trust, the Indenture Trustee, the Depositor, the Owner
      Trustee, the Backup Servicer, the Insurer or the Noteholders by reason of
      the breach of this Agreement by the Servicer, the negligence (other than
      errors in judgment), misfeasance, or bad faith of the Servicer in the
      performance of its duties under this Agreement or by reason of reckless
      disregard of its obligations and duties under this Agreement.

            (c) Indemnification under this Section 8.2 will include, without
      limitation, reasonable fees and expenses of counsel and expenses of
      litigation. If the Servicer has made any indemnity payments pursuant to
      this Section 8.2 and the recipient thereafter collects any of such amounts
      from others, the recipient will promptly repay such amounts collected to
      the Servicer, without interest.

            (d) The Servicer will pay, reimburse and indemnify the Indenture
      Trustee and the Backup Servicer in accordance with Section 6.7 of the
      Indenture.

      Section 8.3 Merger or Consolidation of, or Assumption of the Obligations
of the Servicer or Backup Servicer.

            (a) The Servicer will not merge or consolidate with any other
      person, convey, transfer or lease substantially all its assets as an
      entirety to another Person, or permit any other Person to become the
      successor to the Servicer's business unless, after the merger,
      consolidation, conveyance, transfer, lease or succession, the successor or
      surviving entity will be capable of fulfilling the duties of the Servicer
      contained in this Agreement and, subject to Section 4.6 of the Insurance
      Agreement, will be acceptable to the Controlling Party, and, if an Insurer
      Default has occurred or is continuing, will be an Eligible Servicer. Any
      corporation (i) into which the Servicer may be merged or consolidated,
      (ii) resulting from any merger or consolidation to which the Servicer will
      be a party, (iii) which acquires by conveyance, transfer, or lease
      substantially all of the assets of the Servicer, or (iv) succeeding to the
      business of the Servicer, in any of the foregoing cases will execute an
      agreement of assumption to perform every obligation of the Servicer under
      this Agreement and, whether or not such assumption agreement is executed,
      will be the successor to the Servicer under this Agreement without the
      execution or filing of any paper or any further act on the part of any of
      the parties to this Agreement, anything in this Agreement to the contrary
      notwithstanding; provided, however, that nothing contained herein will be
      deemed to release the Servicer from any obligation. The Servicer will
      provide notice of any merger, consolidation or succession pursuant to this
      Section 8.3 to the Owner Trustee, the Depositor, the Indenture Trustee,
      the Noteholders, the Insurer and each Rating Agency. Notwithstanding the
      foregoing, the Servicer will not merge or consolidate with any other
      Person or permit any other Person to become a successor to the Servicer's
      business, unless (x) immediately after giving effect to such transaction,
      no representation or warranty made pursuant to Section 4.6 will have been
      breached (for purposes hereof, such representations and warranties will be
      true and correct as of the date of the consummation of such transaction)
      and no Servicer Termination Event has

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<PAGE>

      occurred and is continuing other than in connection with a change in
      control as provided in the Insurance Agreement, (y) the Servicer will have
      delivered to the Owner Trustee, the Indenture Trustee, Backup Servicer,
      the Rating Agencies and the Insurer an Officer's Certificate and an
      Opinion of Counsel each stating that such consolidation, merger or
      succession and such agreement of assumption comply with this Section 8.3
      and that all conditions precedent, if any, provided for in this Agreement
      relating to such transaction have been complied with, and (z) the Servicer
      will have delivered to the Owner Trustee, the Indenture Trustee, the
      Rating Agencies and the Insurer an Opinion of Counsel, stating in the
      opinion of such counsel, either (A) all financing statements and
      continuation statements and amendments thereto have been executed and
      filed that are necessary to preserve and protect the interest of the Trust
      in the Receivables and the Other Conveyed Property and reciting the
      details of the filings or (B) no such action will be necessary to preserve
      and protect such interest.

            (b) Any corporation (i) into which the Backup Servicer may be merged
      or consolidated, (ii) resulting from any merger or consolidation to which
      the Backup Servicer will be a party, (iii) which acquires by conveyance,
      transfer or lease substantially all of the assets of the Backup Servicer,
      or (iv) succeeding to the business of the Backup Servicer, in any of the
      foregoing cases will execute an agreement of assumption to perform every
      obligation of the Backup Servicer under this Agreement and, whether or not
      such assumption agreement is executed, will be the successor to the Backup
      Servicer under this Agreement without the execution or filing of any paper
      or any further act on the part of any of the parties to this Agreement,
      anything in this Agreement to the contrary notwithstanding; provided,
      however, that nothing contained herein will be deemed to release the
      Backup Servicer from any obligation.

      Section 8.4 Limitation on Liability of Servicer, Backup Servicer and
Others.

            (a) Neither the Servicer, the Backup Servicer nor any of the
      directors or officers or employees or agents of the Servicer or Backup
      Servicer will be liable to the Trust or the Noteholders, except as
      provided in this Agreement, for any action taken or for refraining from
      the taking of any action pursuant to this Agreement; provided, however,
      that this provision will not protect the Servicer, the Backup Servicer or
      any such person against any liability that would otherwise be imposed by
      reason of a breach of this Agreement or willful misfeasance, bad faith or
      negligence (excluding errors in judgment) in the performance of duties;
      provided further that this provision will not affect any liability of
      Triad to indemnify the Indenture Trustee and the Owner Trustee for costs,
      taxes, expenses, claims, liabilities, losses or damages paid by the
      Indenture Trustee and the Owner Trustee, in their individual capacities
      pursuant to the Purchase Agreement. The Servicer, the Backup Servicer and
      any director, officer, employee or agent of the Servicer or Backup
      Servicer may rely in good faith on the written advice of counsel or on any
      document of any kind prima facie properly executed and submitted by any
      Person respecting any matters arising under this Agreement.

            (b) The Backup Servicer will not be liable for any obligation of the
      Servicer contained in this Agreement or for any errors of the Servicer
      contained in any computer file, certificate or other data or document
      delivered to the Backup Servicer hereunder or on which the Backup Servicer
      must rely in order to perform its obligations hereunder, and the Owner
      Trustee, the Indenture Trustee, the Backup Servicer, the Depositor and the
      Insurer and the Noteholders will look only to the Servicer to perform such
      obligations. The Backup Servicer,

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<PAGE>

      the Indenture Trustee, the Owner Trustee and the Custodian will have no
      responsibility and will not be in default hereunder or incur any liability
      for any failure, error, malfunction or any delay in carrying out any of
      their respective duties under this Agreement if such failure or delay
      results from the Backup Servicer acting in accordance with information
      prepared or supplied by a Person other than the Backup Servicer (or
      contractual agents of the Backup Servicer) or the failure of any such
      other Person to prepare or provide such information. The Backup Servicer
      will have no responsibility, will not be in default and will incur no
      liability for (i) any act or failure to act of any third party (other than
      its contractual agents), including the Servicer or the Controlling Party,
      (ii) any inaccuracy or omission in a notice or communication received by
      the Backup Servicer from any third party (other than its contractual
      agents), (iii) the invalidity or unenforceability of any Receivable under
      applicable law, (iv) the breach or inaccuracy of any representation or
      warranty made with respect to any Receivable, or (v) the acts or omissions
      of any successor Backup Servicer. The provisions of this Section 8.4(b)
      will not limit the Backup Servicer's obligations pursuant to Section 4.14.

            (c) The parties expressly acknowledge and consent to JPMorgan Chase
      Bank, N.A. acting in the possible dual capacity of Backup Servicer or
      successor Servicer and in the capacity as Indenture Trustee. JPMorgan
      Chase Bank, N.A. may, in such dual or other capacity, discharge its
      separate functions fully, without hindrance or regard to conflict of
      interest principles, duty of loyalty principles or other breach of
      fiduciary duties to the extent that any such conflict or breach arises
      from the performance by JPMorgan Chase Bank, N.A. of express duties set
      forth in the this Agreement in any of such capacities, all of which
      defenses, claims or assertions are hereby expressly waived by the other
      parties hereto and the Noteholders except in the case of gross negligence
      and willful misconduct by JPMorgan Chase Bank, N.A.

      Section 8.5 Delegation of Duties. The Servicer may delegate duties under
this Agreement to an Affiliate of Triad with the prior written consent of the
Insurer (unless an Insurer Default has occurred and is continuing). The Servicer
also may at any time perform through sub-contractors the specific duties of (i)
repossession of Financed Vehicles, (ii) tracking Financed Vehicles' Lien
Certificates and (iii) pursuing the collection of deficiency balances or other
amounts due on certain Liquidated Receivables, in each case, without the consent
of the Insurer and may perform other specific collection and repossession duties
through such sub-contractors in accordance with Servicer's customary servicing
policies and procedures; provided, however, that no such delegation or
sub-contracting of duties by the Servicer will relieve the Servicer of its
responsibility with respect to such duties. So long as no Insurer Default has
occurred and is continuing neither Triad nor any party acting as Servicer
hereunder will appoint any subservicer hereunder without the prior written
consent of the Insurer.

      Section 8.6 Servicer and Backup Servicer Not to Resign. Subject to Section
8.3, neither the Servicer nor the Backup Servicer may resign from the
obligations and duties imposed on it by this Agreement as Servicer or Backup
Servicer except upon a determination that by reason of a change in legal
requirements the performance of its duties under this Agreement would cause it
to be in violation of such legal requirements in a manner which would have a
material adverse effect on the Servicer or the Backup Servicer, as the case may
be, and the Insurer (so long as an Insurer Default has not occurred) or the
Majority Noteholders (if an Insurer Default has occurred and is continuing) does
not elect to waive the obligations of the Servicer or the Backup Servicer, as
the case may be, to perform the duties which render it legally unable to act or
to delegate those duties to another Person. Any such determination permitting
the resignation of the Servicer or Backup

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<PAGE>

Servicer will be evidenced by an Opinion of Counsel to such effect delivered and
acceptable to the Indenture Trustee, the Owner Trustee and the Insurer (unless
an Insurer Default has occurred and is continuing). No resignation of the
Servicer will become effective until, so long as no Insurer Default has occurred
and is continuing, the Backup Servicer or an entity acceptable to the Insurer
has assumed the responsibilities and obligations of the Servicer or, if an
Insurer Default has occurred and is continuing, the Backup Servicer or a
successor Servicer that is an Eligible Servicer has assumed the responsibilities
and obligations of the Servicer. No resignation of the Backup Servicer will
become effective until, so long as no Insurer Default has occurred and is
continuing, an entity acceptable to the Insurer has assumed the responsibilities
and obligations of the Backup Servicer or, if an Insurer Default has occurred
and is continuing, a Person that is an Eligible Servicer has assumed the
responsibilities and obligations of the Backup Servicer; provided, however, that
(i) in the event a successor Backup Servicer is not appointed within 60 days
after the Backup Servicer has given notice of its resignation and has provided
the Opinion of Counsel required by this Section 8.6, the Backup Servicer may
petition a court for its removal, (ii) the Backup Servicer may resign with the
written consent of the Insurer and (iii) notwithstanding anything to the
contrary, if JPMorgan Chase Bank, N.A. resigns or is removed as the Indenture
Trustee under the Indenture it will no longer be the Backup Servicer.

                                   ARTICLE IX

                                     Default

      Section 9.1 Servicer Termination Event. For purposes of this Agreement,
each of the following will constitute a "Servicer Termination Event":

            (a) Any failure by the Servicer to deliver to the Indenture Trustee
      for distribution to Noteholders any proceeds or payment required to be so
      delivered under this Agreement that continues unremedied for a period of
      two Business Days (one Business Day with respect to payment of Purchase
      Amounts) after written notice is received by the Servicer from the
      Indenture Trustee or (unless an Insurer Default has occurred and is
      continuing) the Insurer or after discovery of such failure by a
      Responsible Officer of the Servicer;

            (b) Failure by the Servicer to deliver the Servicer's Certificate by
      the Determination Date;

            (c) Failure on the part of the Servicer duly to observe or perform
      any other covenants or agreements of the Servicer set forth in this
      Agreement or, if the Servicer is Triad, failure of Triad duly to perform
      any other covenants or agreements of Triad set forth in the Purchase
      Agreement which failure (i) materially and adversely affects the rights of
      Noteholders (determined without regard to the availability of funds under
      the Note Policy), or of the Insurer (unless an Insurer Default has
      occurred and is continuing), and (ii) continues unremedied for a period of
      30 days after the date on which written notice of such failure, requiring
      the same to be remedied, has been given to the Servicer by the Indenture
      Trustee, the Issuer or the Insurer (or, if an Insurer Default has occurred
      and is continuing, by any Noteholder);

            (d) An Insolvency Event has occurred with respect to the Servicer;

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            (e) Any representation, warranty or statement of the Servicer made
      in this Agreement or any certificate, report or other writing delivered
      pursuant hereto will prove to be incorrect in any material respect as of
      the time when the same will have been made, and the incorrectness of such
      representation, warranty or statement has a material adverse effect on the
      Trust, the Insurer or the Noteholders' interests and, within 30 days after
      knowledge thereof by the Servicer or after written notice thereof will
      have been given to the Servicer by the Indenture Trustee or the Insurer
      (or, if an Insurer Default has occurred and is continuing, a Noteholder),
      the circumstances or conditions in respect of which such representation,
      warranty or statement was incorrect will not have been eliminated or
      otherwise cured;

            (f) So long as no Insurer Default has occurred and is continuing, an
      Insurance Agreement Event of Default occurs;

            (g) A claim is made under the Note Policy; or

            (h) The occurrence of a Trigger Event under the Insurance Agreement.

      Section 9.2 Consequences of a Servicer Termination Event. If a Servicer
Termination Event has occurred and is continuing, the Insurer may (or, if an
Insurer Default has occurred and is continuing, the Indenture Trustee (to the
extent it has knowledge thereof) may, and will at the direction of the Majority
Noteholders), by notice given in writing to the Servicer (and to the Indenture
Trustee if given by the Insurer) terminate all of the rights and obligations of
the Servicer under this Agreement; provided that if no Insurer Default has
occurred and is continuing, neither the Indenture Trustee nor the Majority
Noteholders may deliver such notice, and termination will be in the Insurer's
sole and absolute discretion. On or after the receipt by the Servicer of such
written notice all authority, power, obligations and responsibilities of the
Servicer under this Agreement, whether with respect to the Notes, the
Certificates or the Other Conveyed Property or otherwise, automatically will
pass to, be vested in and become obligations and responsibilities of the Backup
Servicer (or such other successor Servicer appointed by the Controlling Party);
provided, however, that the successor Servicer will have no liability with
respect to any obligation which was required to be performed by the terminated
Servicer prior to the date that the successor Servicer becomes the Servicer or
any claim of a third party based on any alleged action or inaction of the
terminated Servicer. The successor Servicer is authorized and empowered by this
Agreement to execute and deliver, on behalf of the terminated Servicer, as
attorney-in-fact or otherwise, any and all documents and other instruments and
to do or accomplish all other acts or things necessary or appropriate to effect
the purposes of such notice of termination, whether to complete the transfer and
endorsement of the Receivables and the Other Conveyed Property and related
documents to show the Trust as lienholder or secured party on the related Lien
Certificates, or otherwise. The terminated Servicer agrees to cooperate with the
Controlling Party and the successor Servicer in effecting the termination of the
responsibilities and rights of the terminated Servicer under this Agreement,
including the transfer to the successor Servicer for administration by it of all
cash amounts that will at the time be held by the terminated Servicer for
deposit, or have been deposited by the terminated Servicer, in the Collection
Account or thereafter received with respect to the Receivables and the delivery
to the successor Servicer of all Receivable Files, Monthly Records and
Collection Records and a computer tape in readable form as of the most recent
Business Day containing all information necessary to enable the successor
Servicer to service the Receivables and the Other Conveyed Property. If
requested by the Controlling Party, the successor Servicer will terminate the
Blocked Account Agreement and direct the Obligors to make all payments under the
Receivables directly to the successor Servicer (in which event the successor
Servicer will process such payments in accordance

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with Section 4.2(e)), or to a lockbox established by the successor Servicer at
the direction of the Controlling Party, at the successor Servicer's expense. The
terminated Servicer will grant the Indenture Trustee, the successor Servicer and
the Controlling Party reasonable access to the terminated Servicer's premises at
the terminated Servicer's expense.

      Section 9.3 Appointment of Successor.

            (a) On and after the time the Servicer receives a notice of
      termination pursuant to Section 9.2, or upon the resignation of the
      Servicer pursuant to Section 8.6, the Backup Servicer (unless the
      Controlling Party will have exercised its option pursuant to Section
      9.3(b) to appoint an alternate successor Servicer) will be the successor
      in all respects to the Servicer in its capacity as servicer under this
      Agreement and the transactions set forth or provided for in this
      Agreement, and will be subject to all the rights, responsibilities,
      restrictions, duties, liabilities and termination provisions relating
      thereto placed on the Servicer by the terms and provisions of this
      Agreement except as otherwise stated herein. The Indenture Trustee and
      such successor will take such action, consistent with this Agreement, as
      will be necessary to effectuate any such succession. If a successor
      Servicer is acting as Servicer hereunder, it will be subject to
      termination under Section 9.2 upon the occurrence of any Servicer
      Termination Event applicable to it as Servicer.

            (b) The Controlling Party may exercise at any time its right to
      appoint as Backup Servicer or as successor to the Servicer a Person other
      than the Person serving as Backup Servicer at the time, and (without
      limiting its obligations under the Note Policy) will have no liability to
      the Indenture Trustee, Triad, the Depositor, the Person then serving as
      Backup Servicer, any Noteholders or any other Person if it does so.
      Notwithstanding the above, if the Backup Servicer will be legally unable
      or unwilling to act as Servicer, and an Insurer Default has occurred and
      is continuing, the Backup Servicer, the Indenture Trustee or the Majority
      Noteholders may petition a court of competent jurisdiction to appoint any
      Eligible Servicer as the successor to the Servicer. Pending appointment
      pursuant to the preceding sentence, the Backup Servicer, subject to
      Section 8.6(iii), will act as successor Servicer unless it is legally
      unable to do so, in which event the outgoing Servicer will continue to act
      as Servicer until a successor has been appointed and accepted such
      appointment. Subject to Section 8.6, no provision of this Agreement will
      be construed as relieving the Backup Servicer of its obligation to succeed
      as successor Servicer upon the termination of the Servicer pursuant to
      Section 9.2 or the resignation of the Servicer pursuant to Section 8.6. If
      upon the termination of the Servicer pursuant to Section 9.2 or the
      resignation of the Servicer pursuant to Section 8.6, the Controlling Party
      appoints a successor Servicer other than the Backup Servicer, the Backup
      Servicer will not be relieved of its duties as Backup Servicer hereunder.

            (c) Any successor Servicer will be entitled to such compensation
      (whether payable out of the Collection Account or otherwise) as the
      Servicer would have been entitled to under this Agreement if the Servicer
      had not resigned or been terminated hereunder. The Insurer, if the Class A
      Notes are outstanding and no Insurer Default has occurred and is
      continuing, and such successor Servicer may agree on additional
      compensation to be paid to such successor Servicer, which additional
      compensation will be payable as provided herein and will in no event
      exceed $150,000 in the aggregate and which will be deemed to be part of
      the "Servicing Fee" described in Section 4.8. The Backup Servicer will not
      be liable for any Servicing Fee, additional compensation or other amounts
      to be paid to such successor

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      Servicer in connection with its assumption and performance of the
      servicing duties described herein.

      Section 9.4 Notification to Noteholders. Upon any termination of, or
appointment of a successor to, the Servicer, the Indenture Trustee will give
prompt written notice thereof to each Noteholder and to the Rating Agencies.

      Section 9.5 Waiver of Past Defaults. So long as no Insurer Default has
occurred and is continuing, the Insurer (or, if an Insurer Default has occurred
and is continuing, the Majority Noteholders) may, on behalf of all Noteholders,
waive any default by the Servicer in the performance of its obligations
hereunder and its consequences. Upon any such waiver of a past default, such
default will cease to exist, and any Servicer Termination Event arising
therefrom will be deemed to have been remedied for every purpose of this
Agreement. No such waiver will extend to any subsequent or other default or
impair any right consequent thereto.

                                    ARTICLE X

                                   Termination

      Section 10.1 Optional Purchase of All Receivables.

            (a) On any Distribution Date after the last day of any Collection
      Period as of which the Pool Balance will be less than or equal to 10% of
      the Original Pool Balance, the Servicer will have the option to purchase
      the Owner Trust Estate, other than the Trust Accounts (with the consent of
      the Insurer if such purchase would result in a claim on the Note Policy or
      would result in any amount owing to the Insurer under the Insurance
      Agreement remaining unpaid); provided, however, that the amount to be paid
      for such purchase (as set forth in the following sentence) will be
      sufficient to pay the full amount of principal, premium, if any, and
      interest due and payable on the Notes on such Distribution Date. To
      exercise such option, the Servicer will deposit at least two Business Days
      prior to such Distribution Date pursuant to Section 5.6 in the Collection
      Account an amount equal to the aggregate Purchase Amount for the
      Receivables (other than Receivables that became Liquidated Receivables on
      or before the last day of the Collection Period preceding such
      Distribution Date), plus the appraised value of any other property held by
      the Trust (other than the Trust Accounts), such value to be determined by
      an appraiser mutually agreed upon by the Servicer, the Insurer and the
      Indenture Trustee, and will succeed to all interests in and to the Trust.

            (b) Upon any sale of the assets of the Trust pursuant to Section 8.1
      of the Trust Agreement, the Servicer will instruct the Indenture Trustee
      to deposit the proceeds from such sale after all payments and reserves
      therefrom (including the expenses of such sale) have been made (the
      "Insolvency Proceeds") in the Collection Account.

            (c) Notice of any termination of the Trust will be given by the
      Servicer to the Owner Trustee, the Indenture Trustee, the Backup Servicer,
      the Insurer and the Rating Agencies as soon as practicable after the
      Servicer has received notice thereof.

            (d) Following the satisfaction and discharge of the Indenture and
      the payment in full of the principal of and interest on the Notes, the
      Certificateholders will succeed to the

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      rights of the Noteholders hereunder and the Trust will succeed to the
      rights of, and assume the obligations of, the Indenture Trustee pursuant
      to this Agreement.

                                   ARTICLE XI

                      Administrative Duties of the Servicer

      Section 11.1 Administrative Duties.

            (a) Duties with Respect to the Basic Documents. The Servicer will
      perform all its duties and the duties of the Issuer under the Basic
      Documents. In addition, the Servicer will consult with the Owner Trustee
      as the Servicer deems appropriate regarding the duties of the Issuer under
      the Basic Documents. The Servicer will monitor the performance of the
      Issuer and will advise the Owner Trustee when action is necessary to
      comply with the Issuer's duties under the Basic Documents. The Servicer
      will prepare for execution by the Issuer or will cause the preparation by
      other appropriate Persons of all such documents, reports, filings,
      instruments, certificates and opinions as it will be the duty of the
      Issuer to prepare, file or deliver pursuant to the Basic Documents. In
      furtherance of the foregoing, the Servicer will take all necessary action
      that is the duty of the Issuer to take pursuant to the Indenture,
      including pursuant to Sections 2.7, 3.5, 3.6, 3.7, 3.9, 3.10, 3.17, 4.1,
      5.4, 7.3, 8.3, 9.2, 9.3, 11.1 and 11.15 of the Indenture.

            (b) Duties with Respect to the Issuer.

                  (i) In addition to the duties of the Servicer set forth in the
Basic Documents, the Servicer will perform such calculations and will prepare
for execution by the Issuer or the Owner Trustee or will cause the preparation
by other appropriate Persons of all such documents, reports, filings,
instruments, certificates and opinions as it will be the duty of the Issuer or
the Owner Trustee to prepare, file or deliver pursuant to any of the Basic
Documents or under state and federal tax and securities laws, and at the request
of the Owner Trustee will take all appropriate action that it is the duty of the
Issuer to take pursuant to any of the Basic Documents. In accordance with the
directions of the Issuer or the Owner Trustee, the Servicer will administer,
perform or supervise the performance of such other activities in connection with
the Collateral (including the Basic Documents) as are not covered by any of the
foregoing provisions and as are expressly requested by the Issuer or the Owner
Trustee and are reasonably within the capability of the Servicer.

                  (ii) Notwithstanding anything in any of the Basic Documents to
the contrary, the Servicer will be responsible for promptly notifying the Owner
Trustee and the Indenture Trustee in the event that any withholding tax is
imposed on the Issuer's payments (or allocations of income) to an Owner (as
defined in the Trust Agreement) as contemplated in this Agreement. Any such
notice will be in writing and specify the amount of any withholding tax required
to be withheld by the Owner Trustee or the Indenture Trustee pursuant to such
provision.

                  (iii) Notwithstanding anything in the Basic Documents to the
contrary, the Servicer will be responsible for performance of any duties of the
Issuer set forth in any amended Trust Agreement (as contemplated by Section 2.12
of the Trust Agreement) with respect to, among other things, accounting and
reports to Certificateholders (as defined in the Trust Agreement); provided,
however, that once prepared by the Servicer the Owner Trustee will retain
responsibility

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for the distribution of the Schedule K-1s upon request of the Certificateholders
in order to enable the Certificateholders to prepare its federal and state
income tax returns.

                  (iv) The Servicer will perform the duties of the Servicer
specified in Section 9.2 of the Trust Agreement required to be performed in
connection with the resignation or removal of the Owner Trustee, and any other
duties expressly required to be performed by the Servicer under any of the Basic
Documents.

                  (v) In carrying out the foregoing duties or any of its other
obligations under this Agreement, the Servicer may enter into transactions with
or otherwise deal with any of its Affiliates; provided, however, that the terms
of any such transactions or dealings will be in accordance with any directions
received from the Issuer and will be, in the Servicer's opinion, no less
favorable to the Issuer in any material respect.

            (c) Tax Matters. The Servicer will prepare and file, on behalf of
      the Trust, all tax returns, tax elections, financial statements and such
      annual or other reports attributable to the activities engaged in by the
      Issuer as are necessary for preparation of tax reports, including forms
      1099. All tax returns will be signed by the Servicer unless applicable law
      requires a Certificateholder to sign such documents.

            (d) Non-Ministerial Matters. With respect to matters that in the
      reasonable judgment of the Servicer are non-ministerial, the Servicer will
      not take any action pursuant to this Article XI unless within a reasonable
      time before the taking of such action, the Servicer will have notified the
      Owner Trustee and the Indenture Trustee of the proposed action and the
      Owner Trustee and, with respect to items (A), (B), (C) and (D) below, the
      Indenture Trustee and, so long as no Insurer Default has occurred and is
      continuing, the Insurer will not have withheld consent or provided an
      alternative direction. For the purpose of the preceding sentence,
      "non-ministerial matters" include:

                        (A) the amendment of or any supplement to the Indenture;

                        (B) the initiation of any claim or lawsuit by the Issuer
and the compromise of any action, claim or lawsuit brought by or against the
Issuer (other than in connection with the collection of the Receivables);

                        (C) the amendment, change or modification of any of the
Basic Documents;

                        (D) the appointment of successor Note Registrars,
successor Paying Agents and successor Indenture Trustees pursuant to the
Indenture or the appointment of Successor Servicers or the consent to the
assignment by the Note Registrar, Paying Agent or Indenture Trustee of its
obligations under the Indenture; and

                        (E) the removal of the Indenture Trustee.

            (e) Exceptions. Except as expressly set forth herein, the Servicer,
      in its capacity hereunder, will not be obligated to, and will not, (1)
      make any payments to the Noteholders or Certificateholders under the Basic
      Documents, (2) sell the Trust Estate pursuant to Section 5.5 of the
      Indenture, (3) take any other action that the Issuer directs the Servicer
      not to take

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<PAGE>

      on its behalf or (4) in connection with its duties hereunder assume any
      indemnification obligation of any other Person.

            (f) The Backup Servicer or any successor Servicer will not be
      responsible for any obligations or duties of the Servicer under this
      Section 11.1.

      Section 11.2 Records. The Servicer will maintain appropriate books of
account and records relating to services performed under this Agreement, which
books of account and records will be accessible for inspection by the Issuer at
any time during normal business hours upon reasonable prior notice.

      Section 11.3 Additional Information to be Furnished to the Issuer. The
Servicer will furnish to the Issuer and, so long as no Insurer Default has
occurred and is continuing, the Insurer, from time to time such additional
information regarding the Collateral as the Issuer and, so long as no Insurer
Default has occurred and is continuing, the Insurer, will reasonably request.

                                   ARTICLE XII

                            Miscellaneous Provisions

      Section 12.1 Amendment.

            (a) This Agreement may be amended from time to time by the parties
      hereto, with the consent of the Indenture Trustee (which consent may not
      be unreasonably withheld) and with the prior written consent of the
      Insurer (which consent will not be unreasonably withheld; provided that no
      Insurer Default has occurred and is continuing) but without the consent of
      any of the Noteholders, to cure any ambiguity, to correct or supplement
      any provisions in this Agreement, to comply with any changes in the Code,
      or to make any other provisions with respect to matters or questions
      arising under this Agreement which will not be inconsistent with the
      provisions of this Agreement or the Insurance Agreement; provided,
      however, that such action will not, as evidenced by an Opinion of Counsel
      delivered to Owner Trustee and the Indenture Trustee, adversely affect in
      any material respect the interests of any Noteholder; provided further
      that if an Insurer Default has occurred and is continuing, such action
      will not materially adversely affect the interests of the Insurer.

            (b) This Agreement may also be amended from time to time by the
      parties hereto, with the consent of the Insurer, the consent of the
      Indenture Trustee, and the consent of the Holders of Notes evidencing not
      less than a majority of the outstanding principal amount of the Notes for
      the purpose of adding any provisions to or changing in any manner or
      eliminating any of the provisions of this Agreement or of modifying in any
      manner the rights of the Noteholders; provided, however, that no such
      amendment will (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 will be required to be made for the benefit of the
      Noteholders or (b) reduce the aforesaid percentage of the outstanding
      principal amount of the Notes, the Holders of which are required to
      consent to any such amendment, without the consent of the Holders of all
      the outstanding Notes of each class affected thereby; provided, further,
      that if an Insurer Default has occurred and is continuing, such action
      will not materially adversely affect the interest of the Insurer.

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<PAGE>

            (c) The party requesting such amendment will furnish written
      notification of the substance of such amendment or consent to the Rating
      Agencies before the execution thereof and the Indenture Trustee will
      furnish written notification of the substance of such amendment or consent
      to each Noteholder promptly after the execution thereof.

            (d) It will not be necessary for the consent of Noteholders pursuant
      to this Section 12.1 to approve the particular form of any proposed
      amendment or consent, but it will be sufficient if such consent will
      approve the substance thereof. The manner of obtaining such consents (and
      any other consents of Noteholders provided for in this Agreement) and of
      evidencing the authorization of any action by Noteholders will be subject
      to such reasonable requirements as the Indenture Trustee or the Owner
      Trustee, as applicable, may prescribe.

            (e) Prior to the execution of any amendment to this Agreement, the
      Owner Trustee, the Indenture Trustee, the Insurer and Backup Servicer will
      be entitled to receive and conclusively rely upon an Opinion of Counsel
      stating that the execution of such amendment is authorized or permitted by
      this Agreement and the Opinion of Counsel referred to in Section 12.2(h)
      has been delivered. The Owner Trustee, the Backup Servicer and the
      Indenture Trustee may, but will not be obligated to, enter into any such
      amendment which affects the Issuer's, the Owner Trustee's, the Backup
      Servicer's or the Indenture Trustee's, as applicable, own rights, duties
      or immunities under this Agreement or otherwise.

      Section 12.2 Protection of Title to Trust.

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

            (b) Neither the Depositor nor the Servicer will change its name,
      identity, corporate structure or jurisdiction of formation or take any
      action that would, could or might make any financing statement or
      continuation statement filed in accordance with Section 12.2(a)
      ineffective to continue the first priority perfected security interest in
      that portion of the trust estate in which a security interest may be
      perfected by filing under the applicable Uniform Commercial Code. If any
      refiling is required, the Depositor or Servicer, as the case may be, will
      promptly give notice and file new financing statements or amendments
      thereto or continuation statements thereof. Promptly upon such filing, the
      Depositor or the Servicer, as the case may be, will deliver an Opinion of
      Counsel in form and substance reasonably satisfactory to the Insurer,
      stating either (A) all financing statements and continuation statements
      have been executed and filed that are necessary fully to preserve and
      protect the interest of the Trust and the Indenture Trustee in the
      Receivables, and reciting the details of such filings or referring to
      prior Opinions of Counsel in which such details are given, or (B) no such
      action will be necessary to preserve and protect such interest.

            (c) The Servicer will at all times maintain each office from which
      it will service Receivables, and its principal executive office, within
      the United States of America.

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            (d) The Servicer will maintain accounts and records as to each
      Receivable accurately and in sufficient detail to permit (i) the reader
      thereof to know at any time the status of such Receivable, including
      payments and recoveries made and payments owing (and the nature of each)
      and (ii) reconciliation between payments or recoveries on (or with respect
      to) each Receivable and the amounts from time to time deposited in the
      Collection Account in respect of such Receivable.

            (e) The Servicer will maintain its computer systems so that, from
      and after the time of sale under this Agreement of the Receivables to the
      Issuer, the Servicer's master computer records (including any backup
      archives) that refer to a Receivable will indicate clearly the interest of
      the Trust in such Receivable and that such Receivable is owned by the
      Trust. Indication of the Trust's interest in a Receivable will be deleted
      from or modified on the Servicer's computer systems when, and only when,
      the related Receivable will have been paid in full or repurchased.

            (f) If at any time the Servicer proposes to sell, grant a security
      interest in or otherwise transfer any interest in motor vehicle
      receivables to any prospective purchaser, lender or other transferee, the
      Servicer will give to such prospective purchaser, lender or other
      transferee computer tapes, records or printouts (including any restored
      from backup archives) that, if they refer in any manner whatsoever to any
      Receivable, indicate clearly that such Receivable has been sold and is
      owned by the Trust unless such Receivable has been paid in full or
      repurchased.

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

            (h) The Servicer will deliver to the Insurer, the Owner Trustee and
      the Indenture Trustee promptly after the execution and delivery of the
      Agreement and, if required pursuant to Section 12.1, of each amendment, an
      Opinion of Counsel stating that, in the opinion of such counsel, in form
      and substance reasonably satisfactory to the Insurer, either (A) all
      financing statements and continuation statements have been executed and
      filed that are necessary fully to preserve and protect the interest of the
      Trust and the Indenture Trustee in the Receivables, and reciting the
      details of such filings or referring to prior Opinions of Counsel in which
      such details are given, or (B) no such action will be necessary to
      preserve and protect such interest. Each Opinion of Counsel referred to in
      this paragraph (h) will specify any action necessary (as of the date of
      such opinion) to be taken in the following year to preserve and protect
      such interest.

      Section 12.3 Notices. All demands, notices and communications hereunder
will be in writing and will be deemed to have been duly given to the addressee
if mailed, by first-class registered mail, postage prepaid service, confirmed
facsimile transmission, or a nationally recognized express courier, as follows:

            If to the Depositor:          Triad Financial Special Purpose LLC
                                          7711 Center Avenue, Suite 390
                                          Huntington Beach, California 92647

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<PAGE>

                                          Attention: Chief Financial Officer

            If to the Servicer:           Triad Financial Corporation
                                          7711 Center Avenue, Suite 100
                                          Huntington Beach, California 92647
                                          Attention: Chief Financial Officer

            If to the Issuer or
            Owner Trustee:                Wilmington Trust Company
                                          Rodney Square North,
                                          1100 N. Market Street
                                          Wilmington, Delaware 19890
                                          Attn: Corporate Trust Administration

            If to the Indenture Trustee:  JPMorgan Chase Bank, N.A.
                                          4 New York Plaza, 6th Floor
                                          New York, New York 10004-2477
                                          Attention: Worldwide Securities
                                          Services - Global Debt - Triad
                                          2005-A

            If to the Insurer:            Ambac Assurance Corporation
                                          One State Street Plaza
                                          19th Floor
                                          New York, New York  10004

In each case in which notice or other communication to the Insurer refers to a
Servicer Termination Event, a claim on the Note Policy, or with respect to which
failure on the part of the Insurer to respond will be deemed to constitute
consent or acceptance, then a copy of such notice or other communication should
also be sent to the attention of General Counsel and will be marked to indicate
"URGENT MATERIAL ENCLOSED."

            If to Moody's:                Moody's Investors Service, Inc.
                                          ABS Monitoring Department
                                          99 Church Street
                                          New York, New York 10007

            If to Standard & Poor's:      Standard & Poor's Ratings Group
                                          55 Water Street
                                          New York, New York 10041
                                          Attention: Asset Backed Surveillance
            Department

Any such demand, notice or communication hereunder will be deemed to have been
received on the date delivered to or received at the premises of the addressee
as evidenced by the date noted on the return receipt.

            Subject to Section 5.10(b) hereof, any notice required or permitted
to be mailed to a Noteholder will be given by first class mail, postage prepaid,
at the address of such Holder as shown

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<PAGE>

in the Note Register. Any notice so mailed within the time prescribed in the
Agreement will be conclusively presumed to have been duly given, whether or not
the Noteholder receives such notice.

      Section 12.4 Assignment. This Agreement will inure to the benefit of and
be binding upon the parties hereto and their respective successors and permitted
assigns. Notwithstanding anything to the contrary contained herein, except as
provided in Sections 7.4 and 8.3 and as provided in the provisions of this
Agreement concerning the resignation of the Servicer, this Agreement may not be
assigned by the Depositor or the Servicer without the prior written consent of
the Trust, the Backup Servicer, the Indenture Trustee and the Insurer (or if an
Insurer Default has occurred and is continuing the of Noteholders evidencing not
less than 66-2/3% of the principal amount of the outstanding Notes).

      Section 12.5 Limitations on Rights of Others. The provisions of this
Agreement are solely for the benefit of the parties hereto, the Indenture
Trustee, the Owner Trustee and the Noteholders, as third-party beneficiaries.
The Insurer and its successors and assigns will be a third-party beneficiary to
the provisions of this Agreement, and will be entitled to rely upon and directly
enforce such provisions of this Agreement so long as no Insurer Default has
occurred and is continuing. Except as expressly stated otherwise herein, any
right of the Insurer to direct, appoint, consent to, approve of, or take any
action under this Agreement, will be a right exercised by the Insurer in its
sole and absolute discretion. The Insurer may disclaim any of its rights and
powers under this Agreement (but not its duties and obligations under the Note
Policy) upon delivery of a written notice to the Owner Trustee. Except as
provided in this Agreement, no other Person will have 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 12.6 Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction will, 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 will not invalidate or render unenforceable
such provision in any other jurisdiction.

      Section 12.7 Separate Counterparts. This Agreement may be executed by the
parties hereto in separate counterparts, each of which when so executed and
delivered will be an original, but all such counterparts will together
constitute but one and the same instrument.

      Section 12.8 Headings. The headings of the various Articles and Sections
herein are for convenience of reference only and will not define or limit any of
the terms or provisions hereof.

      Section 12.9 Governing Law. THIS AGREEMENT WILL 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
WILL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

      Section 12.10 Assignment to Indenture Trustee. The Depositor hereby
acknowledges and consents to any mortgage, pledge, assignment and grant of a
security interest by the Issuer to the Indenture Trustee pursuant to the
Indenture for the benefit of the Noteholders of all right, title and interest of
the Issuer in, to and under the Receivables and/or the assignment of any or all
of the Issuer's rights and obligations hereunder to the Indenture Trustee.

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      Section 12.11 Nonpetition Covenants.

            (a) Notwithstanding any termination of this Agreement, the Servicer,
      the Backup Servicer, the Indenture Trustee and the Depositor will not,
      prior to the date that is one year and one day after the termination of
      this Agreement, acquiesce, petition or otherwise invoke or cause the
      Issuer to invoke the process of any court or government authority for the
      purpose of commencing or sustaining a case against the Issuer under any
      federal or state bankruptcy, insolvency or similar law or appointing a
      receiver, liquidator, assignee, trustee, custodian, sequestrator or other
      similar official of the Issuer or any substantial part of its property, or
      ordering the winding up or liquidation of the affairs of the Issuer.

            (b) Notwithstanding any termination of this Agreement, the Issuer,
      the Servicer, the Backup Servicer and the Indenture Trustee will not,
      prior to the date that is one year and one day after the termination of
      this Agreement with respect to the Depositor, acquiesce to, petition or
      otherwise invoke or cause the Depositor to invoke the process of any court
      or government authority for the purpose of commencing or sustaining a case
      against the Depositor under any federal or state bankruptcy, insolvency or
      similar law, appointing a receiver, liquidator, assignee, trustee,
      custodian, sequestrator, or other similar official of the Depositor or any
      substantial part of its property, or ordering the winding up or
      liquidation of the affairs of the Depositor.

      Section 12.12 Limitation of Liability of Owner Trustee and Indenture
Trustee.

            (a) Notwithstanding anything contained herein to the contrary, this
      Agreement has been executed by Wilmington Trust Company not in its
      individual capacity but solely in its capacity as Owner Trustee of the
      Issuer and in no event will Wilmington Trust Company in its individual
      capacity or, except as expressly provided in the Trust Agreement, as Owner
      Trustee have any liability for the 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 will be had solely to the assets of the Issuer. For all
      purposes of this Agreement, in the performance of its duties or
      obligations hereunder or in the performance of any duties or obligations
      of the Issuer hereunder, the Owner Trustee will be subject to, and
      entitled to the benefits of, the terms and provisions of Articles V, VI
      and VII of the Trust Agreement.

            (b) Notwithstanding anything contained herein to the contrary, this
      Agreement has been executed and delivered by JPMorgan Chase Bank, N.A.,
      not in its individual capacity but solely as Indenture Trustee and Backup
      Servicer and in no event will JPMorgan Chase Bank, N.A. have any liability
      for the 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 will
      be had solely to the assets of the Issuer.

            (c) In no event will JPMorgan Chase Bank, N.A., in any of its
      capacities hereunder, be deemed to have assumed any duties of the Owner
      Trustee under the Delaware Statutory Trust Statute, common law, or the
      Trust Agreement.

      Section 12.13 Independence of the Servicer. For all purposes of this
Agreement, the Servicer will be an independent contractor and will not be
subject to the supervision of the Issuer, the

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Indenture Trustee and Backup Servicer or the Owner Trustee with respect to the
manner in which it accomplishes the performance of its obligations hereunder.
Unless expressly authorized by this Agreement, the Servicer will have no
authority to act for or represent the Issuer or the Owner Trustee in any way and
will not otherwise be deemed an agent of the Issuer or the Owner Trustee.

      Section 12.14 No Joint Venture. Nothing contained in this Agreement (i)
will constitute the Servicer and either of the Issuer or the Owner Trustee as
members of any partnership, joint venture, association, syndicate,
unincorporated business or other separate entity, (ii) will be construed to
impose any liability as such on any of them or (iii) will be deemed to confer on
any of them any express, implied or apparent authority to incur any obligation
or liability on behalf of the others.

      Section 12.15 Nonpublic Personal Information. In the course of carrying
out their duties under this Agreement, the Indenture Trustee, the Backup
Servicer, the Issuer and the Depositor shall develop or receive certain
information regarding the "consumers" and "customers" of the Servicer, including
but not limited to "nonpublic personal information," (as those terms are defined
in Title V of the Gramm-Leach-Bliley Act and the privacy regulations adopted
thereunder). Notwithstanding any other provision of the Agreement, with respect
to nonpublic personal information about the customers and consumers of the
Servicer, each of the Indenture Trustee, the Backup Servicer, the Issuer and the
Depositor agrees as follows: (i) except as may be reasonably necessary in the
ordinary course of business to carry out the activities to be performed by the
Indenture Trustee, the Backup Servicer, the Issuer or the Depositor under this
Agreement or as may be required by law or legal process, it will not disclose
any such nonpublic personal information to any third party; (ii) it will not use
any such nonpublic personal information other than to carry out the purposes for
which it was disclosed to the Indenture Trustee, the Backup Servicer, the Issuer
or the Depositor, as applicable, unless such other use is expressly permitted by
a written agreement executed by the Servicer or required by law or legal
process; (iii) it shall restrict disclosure of the information solely to those
of its employees with a need to know and will advise employees who receive the
information of the obligation of confidentiality hereunder; and (iv) it will
take all reasonable measures, including without limitation such measures as it
takes to safeguard its own confidential information, to ensure the security and
confidentiality of all such nonpublic personal information, to protect against
anticipated threats or hazards to the security or integrity of such nonpublic
personal information and to protect against unauthorized access to or use of
such nonpublic personal information. The Servicer shall have access (during
normal business hours, upon reasonable prior notice) to review such books and
records of the Indenture Trustee, the Backup Servicer, Issuer and the Depositor
as may be necessary to assess compliance with the requirements of this Section
12.15. All costs and expenses of such a review shall be borne solely by the
Servicer, unless the results of such review indicate a breach of this Section
12.15 by the Indenture Trustee, the Backup Servicer, the Issuer or the
Depositor. The Indenture Trustee, the Backup Servicer, the Issuer or the
Depositor, as applicable, shall promptly notify the Servicer if it receives any
complaint or notice concerning a violation of privacy rights or becomes aware of
a breach of customer data security. Upon termination of this Agreement, the
Indenture Trustee, the Backup Servicer, the Issuer and the Depositor shall
return or destroy all nonpublic personal information, without retaining any
copies of such documents and records.

                           [Signature page to follow]

                                       63

<PAGE>

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

                                     TRIAD AUTOMOBILE RECEIVABLES TRUST 2005-A

                                     By: WILMINGTON TRUST COMPANY, not in its
                                     individual capacity but solely as Owner
                                     Trustee of the Trust

                                     By: /s/ Rachel L. Simpson
                                         ------------------------------------
                                         Name:  Rachel L. Simpson
                                         Title: Financial Services Officer

                                     TRIAD FINANCIAL SPECIAL PURPOSE LLC, as
                                     Depositor

                                     By: /s/ Mike L. Wilhelms
                                         ------------------------------------
                                         Name: Mike L. Wilhelms
                                         Title: Chief Financial Officer

                                     TRIAD FINANCIAL CORPORATION, as Servicer
                                     and Custodian

                                     By: /s/ Mike L. Wilhelms
                                         ------------------------------------
                                         Name: Mike L. Wilhelms
                                         Title: Senior Vice President
                                                and Chief Financial Officer

                                     JPMORGAN CHASE BANK, N.A., as Backup
                                     Servicer

                                     By: /s/ Michael A. Smith
                                         ------------------------------------
                                         Name:  Michael A. Smith
                                         Title: Vice President

Acknowledged and accepted by
JPMORGAN CHASE BANK, N.A.,
not in its individual capacity but solely as Indenture Trustee

By: /s/ Michael A. Smith
    ----------------------
    Name:  Michael A. Smith
    Title: Vice President

                [Signature Page to Sale and Servicing Agreement]

<PAGE>

                                                                      SCHEDULE A

                             SCHEDULE OF RECEIVABLES

                   [See Schedule A to the Purchase Agreement]

                                     SCH-A-1

<PAGE>

                                                                      SCHEDULE B

                         REPRESENTATIONS AND WARRANTIES

                   [See Schedule B to the Purchase Agreement]

                                     SCH-B-1

<PAGE>

                                                                      SCHEDULE C

                        SERVICING POLICIES AND PROCEDURES

                Note: Applicable Time Periods Will Vary by State
                                 [See Attached]

                                     SCH-C-1

<PAGE>

                                                                      SCHEDULE D

                          CUSTODIAN THIRD PARTY VENDORS

               Arcus Data Security Inc., an Iron Mountain Company

                          FDI Computer Consulting, Inc.

                                       A-1

<PAGE>

                                                                       EXHIBIT A

                             SERVICER'S CERTIFICATE

                                 [See Attached]

                                       B-1

<PAGE>

                                                                       EXHIBIT B

                     FORM OF NOTE GUARANTY INSURANCE POLICY

                               [Please see Tab 12]

                                       C-1

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