Document:

<PAGE>

                                                                     Exhibit 4.7

              [Front Side of Term Notes Other Than One Month Notes]

                             The Thaxton Group, Inc.
                              1524 Pageland Highway
                         Lancaster, South Carolina 29720

                      Subordinated Term Note - Series T2-__

Date of Issue ________________, 20__             No.____________________________

         FOR VALUE RECEIVED, The Thaxton Group, Inc. (the "Issuer") hereby
promises to pay the principal amount of _________________________ Dollars
($_______________) on the Stated Maturity Date set forth below,as the same may
be extended as provided herein, to

Name    ___________________________

        ___________________________  Social Security or     Stated Maturity Date
                                     Employer I.D. No.      ("Maturity")

Address ___________________________  _________________       _________________

        ___________________________

(the "Holder"), or registered assigns, in the manner provided for on the reverse
side hereof. This Subordinated Term Note (the "Term Note") shall bear interest
on the unpaid principal amount from the date of issue until paid at the initial
rate of _____________ percent (____%) per annum, such interest to be payable as
provided herein, provided that such interest rate shall be subject to adjustment
as described on the reverse side hereof.

         ISSUANCE UNDER INDENTURE. This Term Note is one of a series of a duly
authorized issue of securities of the Issuer ((each a "Security") and, together,
the "Securities") issued and to be issued under an Indenture, dated as of
February 17, 1998 (herein called the "Indenture") between the Issuer and The
Bank of New York, as Trustee (herein called the "Trustee" which term includes
any successor Trustee under the Indenture) to which the Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations, duties and immunities thereunder of the Issuer,
the Trustee and the Holders of the Securities, and of the terms upon which the
Securities are, and are to be, authenticated and delivered.

         Reference is made to the further provisions of this Term Note set forth
on the reverse hereof. Such further provisions shall for all purposes have the
same effect as though fully set forth at this place.

         Unless the Certificate of Authentication hereon has been executed by
the Trustee, either directly or through an Authenticating Agent, by the manual
or facsimile signature of an authorized signer, this Term Note shall not be
entitled to any benefit under the Indenture or be valid or obligatory for any
purpose.

<PAGE>

       [Front Side of Subordinated Term Notes Other Than One Month Notes]

         INTEREST PAYMENT OPTIONS

                  Interest at the above rate will be paid
                  ______ Monthly
                  ______ Quarterly
                  ______ At Maturity (compounded daily)

THIS SECURITY IS NOT A DEPOSIT, SAVINGS ACCOUNT OR AN OBLIGATION OF AN INSURED
DEPOSITORY INSTITUTION AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION (FDIC) OR ANY OTHER GOVERNMENTAL AGENCY.

ATTEST:                                     THE THAXTON GROUP, INC.

By:  ____________________________           By: ________________________________
         Allan F. Ross, Secretary               James D. Thaxton
                                                Chairman of the Board, President
[SEAL]                                           and Chief Executive Officer

Authentication Certificate:

         This Term Note is one of the series of Securities referred to in the
within-mentioned Indenture.

                                            The Bank of New York, as Trustee

                                            ____________________________________
                                                     Authorized Agent

                                       2

<PAGE>

      [Reverse Side of Subordinated Term Notes Other Than One Month Notes]

         PAYMENT AND INTEREST ACCRUAL. Payment of the principal of and interest
on this Term Note shall be made in lawful money of the United States at the
principal office of The Thaxton Group, Inc., 1524 Pageland Highway, Lancaster,
South Carolina 29720, or at such other place as the Issuer may designate to the
Holder in writing ("Place of Payment"); PROVIDED, HOWEVER, that any such payment
may be made, at the option of the Issuer, by check mailed to the registered
address of the Holder. Upon payment or tender of payment hereof at Maturity or
earlier redemption (in whole), this Term Note shall be surrendered to the Issuer
for cancellation at the Place of Payment. Unless otherwise agreed in writing by
the Issuer, interest hereon shall cease to accrue, and the Issuer shall have no
further liability with respect thereto, upon payment (or tender of payment in
the aforesaid manner) of the outstanding principal amount hereof plus all
accrued but unpaid interest at Maturity or earlier redemption.

         INTEREST RATE AND INTEREST RATE ADJUSTMENT. The interest rate payable
on the principal amount of this Term Note shall be the initial rate set forth on
the front of this Term Note unless it is adjusted by the Issuer. The Issuer may
adjust the interest rate payable on this series of Securities. Any such
adjustment shall be pursuant to the preceding sentence on the last Business Day
of a month and shall be effective on the first day of the second month following
such adjustment for Securities of this series issued or extended on or after the
first day of such month. Any adjustment of the interest rate shall remain in
effect unless and until a further adjustment is made by the Issuer.

         POSSIBLE AUTOMATIC RENEWALS. No later than 30 days prior to Maturity,
the Company will give the Holder of this Term Note notice by first-class mail of
the Maturity. This Term Note (with any interest payable at Maturity being added
to the principal amount hereof) will be automatically renewed for successive
terms, equal in duration to the original term hereof, at the rate of interest
then in effect for Term Notes of this series unless, prior to Maturity, the
Issuer receives notification of the Holder's intent to redeem the Term Note or
receive the interest payment due at Maturity. Except for a possible change in
the interest rate as described above, all of the terms and conditions applicable
to the Term Note when issued will also apply during each period of renewal. Upon
any renewal hereof, unless this Term Note is surrendered and cancelled and a new
Term Note is issued in its stead, the principal amount of this Term Note shall
be deemed amended to include any accrued but unpaid interest that is added to
the principal amount and the date of Maturity shall be deemed amended to be the
date of Maturity of the period of renewal.

         OPTIONAL REDEMPTION BY ISSUER. This Term Note is subject to redemption
upon not less than 30 days' notice by first class mail, at any time, as a whole
or in part, at the election of the Issuer, without premium, together with
accrued interest to the date fixed for redemption in such notice, but any
interest installment, which is due and payable on or prior to such date, will be
payable to the Holder at the close of business on the relevant interest payment
date. Each partial redemption payment shall be made as provided in the Indenture
on the Outstanding Securities of this series of the Securities called for
redemption.

         REDEMPTION PRIOR TO MATURITY BY HOLDER. The Holder shall have the right
at its option to redeem this Term Note in whole or in part on any Business Day
prior to Maturity. Upon such redemption, the Holder shall forfeit an amount
equal to the difference between the amount of interest actually accrued on this
Term Note since the date of issuance (or, in the case of a renewal or extension
of this Term Note from the date of the most recent renewal) and the amount of
interest that would have accrued on this Term Note had the rate of interest been
3% less than the rate of interest actually accrued. When necessary to comply
with the requirements of this paragraph, any interest already paid to or for the
account of the Holder shall be deducted from the amount redeemed. Holders shall
also have the right to make partial redemptions prior to Maturity; PROVIDED,
HOWEVER, that, in the case of a partial redemption, a minimum outstanding
principal amount of $1,000 is maintained. The above-mentioned forfeitures shall
be calculated only upon the amount so redeemed. This Term Note may be redeemed
before Maturity without forfeiture of any interest upon the death of the Holder
of this Term Note or when the Holder of this Term Note is determined to be
legally incompetent by a court or other administrative body of competent
jurisdiction.

                                       3

<PAGE>

      [Reverse Side of Subordinated Term Notes Other Than One Month Notes]

         PARTIAL REDEMPTIONS REQUIRING SURRENDER OF THIS NOTE; INTEREST RATE
REDUCTION. If this Term Note is redeemed in part and such redemption results in
a principal balance (the "New Principal Amount") that would accrue a lower
annual interest rate than would have accrued if this Term Note had been
originally issued at the New Principal Amount as one of this series of the
Securities, this Term Note shall be surrendered to the Issuer and cancelled and
a new Term Note constituting one of this series of the Securities shall be
issued to the Holder in a denomination equal to the New Principal Amount. Such
new Term Note shall be issued on the terms, including the rate of interest, then
applicable to a Term Note of this series of the Securities having a denomination
equal to the New Principal Amount.

         ASSIGNMENT. As provided in the Indenture and subject to certain
limitations set forth therein, this Term Note shall not be transferable to any
person except by endorsement and delivery by the Holder, or his duly authorized
representative at any Place of Payment referred to above and, upon surrender to
the Issuer with proper endorsement, a new instrument of like tenor shall be
issued in the name of the transferee. No service charge shall be made for any
such registration of transfer or exchange, but the Issuer may require payment of
a sum sufficient to cover any tax or other governmental charge payable in
connection therewith. Unless and until transferred in the manner aforesaid, the
Issuer, the Trustee and any agent of either of them, may treat the Holder whose
name or names appear on the face of this instrument as the absolute owner hereof
for all purposes and neither the Issuer, the Trustee nor any Paying Agent shall
be affected by notice to the contrary. If this Term Note is payable to two or
more persons, they shall be deemed to be joint tenants with right of
survivorship and any and all payments herein shall be made to either, or the
survivor of them.

         SUBORDINATION. THE INDEBTEDNESS EVIDENCED BY THIS TERM NOTE IS, TO THE
EXTENT AND IN THE MANNER PROVIDED IN THE INDENTURE, SUBORDINATE AND SUBJECT IN
RIGHT OF PAYMENT TO THE PRIOR PAYMENT IN FULL OF ALL SENIOR INDEBTEDNESS (AS
DEFINED IN THE INDENTURE) OF THE ISSUER, WHETHER OUTSTANDING AT THE DATE OF THE
INDENTURE OR THEREAFTER INCURRED. EACH HOLDER OF THIS TERM NOTE, BY HIS
ACCEPTANCE HEREOF, AGREES TO AND SHALL BE BOUND BY ALL THE PROVISIONS OF THE
INDENTURE RELATING TO SUCH SUBORDINATION.

         EVENT OF DEFAULT. If an Event of Default, as defined in the Indenture,
shall occur and be continuing, the principal of all the Securities may be
declared due and payable in the manner and with the effect provided in the
Indenture.

         WHEN PAYMENT DATE IS NOT A BUSINESS DAY. In any case where any interest
payment date, redemption date or the Stated Maturity Date (as set forth above)
of this Term Note shall not be a Business Day at any Place of Payment, then
(notwithstanding any other provision of this Term Note) payment of principal and
interest need not be made at such Place of Payment on such date, but may be made
on the next succeeding Business Day at such Place of Payment with the same force
and effect as if made on the interest payment date or redemption date, or at the
Stated Maturity Date (as set forth above), provided that no interest shall
accrue for the period from and after such interest payment date, redemption date
or Stated Maturity Date, as the case may be.

         ISSUABLE IN REGISTERED FORM ONLY. This Term Note is one of a series of
Securities issuable only in registered form without coupons.

         DEFINED TERMS. All capitalized terms in this Term Note which are
defined in the Indenture and not otherwise defined herein shall have the
meanings assigned to them in the Indenture.

                                       4<PAGE>

                                                                     Exhibit 4.8

                              CONSENT OF DIRECTORS
                                       OF
                             THE THAXTON GROUP, INC.
                                       TO
                             ACTION WITHOUT MEETING

         We, the undersigned, being all of the directors of The Thaxton Group,
Inc., a South Carolina corporation (the "Corporation"), do hereby adopt the
following resolutions by signing our written consent hereto:

         WHEREAS, the Corporation entered into an Indenture, dated as of
February 17, 1998, with The Bank of New York, as Trustee (the "Indenture"), for
the issuance thereunder from time to time of the Corporation's Securities (as
defined in the Indenture);

         WHEREAS, pursuant to resolutions adopted by the Board of Directors on
_____, 2002, the Corporation authorized the issuance under the Indenture of up
to and including $125,000,000 in aggregate principal amount of the Securities;

         WHEREAS, Section 301 of the Indenture provides that the aggregate
principal amount of the Securities which may be authenticated and delivered and
Outstanding (as defined in the Indenture) under the Indenture is unlimited and
that the Securities may be issued up to the aggregate principal amount of
Securities from time to time authorized by and pursuant to a resolution of the
Board of Directors of the Corporation;

         WHEREAS, the Board of Directors desires to increase the aggregate
principal amount of Securities which may be authenticated and delivered and
Outstanding under the Indenture from up to and including $75,000,000 to up to
and including $125,000,000;

         RESOLVED, that the additional $125,000,000 in aggregate principal
amount of the Securities issuable under the Indenture shall be issued only as
registered Securities without coupons, shall be dated as of the date of receipt
of payment therefor by the Corporation, and the form of each series of such
Securities as set forth in Exhibits A, B and C to the Indenture, is hereby
approved; and it is further

         RESOLVED, that such Securities shall be executed in the name of and on
behalf of the Corporation by the Chairman of the Board, President and Chief
Executive Officer, the Executive Vice President and Chief Operating Officer, the
Treasurer or any Vice President, under its corporate seal reproduced thereon and
attested by the Secretary or any Assistant Secretary, and the signatures of any
of said officers on such Securities may be manual or in the form of facsimile
signatures of the present or any future said officer, and any such Securities
bearing the manual or facsimile signatures of individuals who were at any time
the proper officers of the Corporation to execute or attest such Securities
shall be and continue to be valid and enforceable obligations of the Corporation

<PAGE>

in accordance with their terms and the terms of the Indenture, notwithstanding
that any such individuals or any of them ceased to hold such offices prior to
the authentication and delivery of such Securities or did not hold such offices
at the date of such Securities; and it is further

         RESOLVED, that pursuant to the provisions of said Indenture, the
Chairman of the Board, President and Chief Executive Officer, the Executive Vice
President and Chief Operating Officer, the Treasurer and any Vice President of
the Corporation be, and each of them hereby is, authorized and empowered to
cause up to and including an additional $125,000,000 in aggregate principal
amount of the Securities to be issued under the Indenture which Securities shall
consist of any of the series of such securities hereinafter authorized, and upon
the issuance and execution thereof by the Corporation, to cause any series of
the Securities to be delivered from time to time to The Bank of New York,
Trustee under the Indenture, for authentication by it, and to deliver to said
Trustee the written order of the Corporation for the authentication and delivery
of any such series of the Securities as they are executed and issued by the
Corporation; and it is further

         RESOLVED, that the Securities, when issued in accordance with the
Indenture, shall be fully paid and nonassessable; and it is further

         RESOLVED, that the additional $125,000,000 in aggregate principal
amount of the Securities shall be issued in series as designated below, and
shall have the terms set forth under each such designated series.

                              SERIES D2 SECURITIES

                  (a) Series D2 of the Securities to be issued by the
         Corporation shall be entitled the "Subordinated Daily Notes - Series
         D2" (the "Series D2 Securities"), payable upon redemption, in whole or
         in part, by the holder or the Corporation as hereinafter provided,
         bearing interest from the date thereof at the initial annual interest
         rate set forth below, compounded daily, with the Interest Payment Date
         on such securities, and the Regular Record Date for such payment, being
         the whole or partial redemption date;

                  (b) Series D2 Securities shall be issued in the following
         denominations at the following annual rates of interest:

                      Any amount of $50 to $50,000                    6.50%
                      Any amount over $50,000 but less                6.75%
                             than $100,000
                      Any amount over $100,000 but less               7.00%
                             than $500,000
                      Over $500,000                                   7.50%

         and such rates shall continue in effect for Series D2 Securities unless
         and until adjusted as hereinafter provided;

<PAGE>

                  (c) As of the last Business Day (as defined in the Indenture)
         of each month, the Chief Executive Officer and President or, in his
         absence, the Executive Vice President and Chief Operating Officer
         (each, an "Authorized Officer") is hereby authorized, in his
         discretion, to adjust the annual interest rate payable on any of the
         Series D2 Securities, and the compounding period for such annual
         interest rate, which adjustment, if any, shall be effective as of the
         first day of the second month following such adjustment;

                  (d) Series D2 Securities shall be redeemable, at the option of
         the Corporation, in whole or in part, at any time as provided in the
         form of the Series D2 Security attached hereto as Exhibit A (the
         "Series D2 Form") and as provided in the Indenture, with accrued
         interest on the redeemed amount of such security payable on the
         redemption date;

                  (e) Series D2 Securities shall be redeemable, in whole or in
         part, at the option of the holder pursuant to the holder's demand for
         payment of all or any portion of the principal amount, with accrued
         interest on the redeemed amount of such security payable on the
         redemption date;

                  (f) Upon any partial redemption of a Series D2 Security by the
         Corporation or the holder thereof pursuant to paragraphs (d) or (e)
         above, the outstanding principal amount thereof shall not be less than
         $50;

                  (g) Upon any partial redemption of a Series D2 Security by a
         holder or by the Corporation that results in a principal amount that
         would accrue a lower annual rate of interest than such Series D2
         Security would have accrued if it had been original issued at such
         principal amount pursuant to paragraph (b) above (the "New Principal
         Amount"), such Series D2 Security shall be cancelled and a new Series
         D2 Security shall be issued to the holder in a denomination equal to
         the New Principal Amount which shall accrue interest from the date of
         issuance at the annual rate set forth in paragraph (b) above for the
         applicable denomination of such new Series D2 Security;

                  (h) Upon any tender of funds to the Corporation by a holder to
         increase the principal amount of a Series D2 Security that would result
         in a principal amount that would accrue a higher annual rate of
         interest if such Series D2 Security had been originally issued pursuant
         to paragraph (b) above (the "New Principal Amount"), such Series D2
         Security, upon receipt of such tendered funds from the holder, shall be
         cancelled and a new Series D2 Security shall be issued to the holder in
         a denomination equal to the New Principal Amount which shall accrue
         interest from the date of issuance at the annual rate provided for in
         paragraph (b) above for the applicable denomination of such new Series
         D2 Security; and

                  (i) Series D2 Securities shall have such other terms,
         conditions and provisions not inconsistent with the foregoing as are
         set forth in the Series D-2 Form and in the Indenture.

<PAGE>

                              SERIES M2 SECURITIES

                  (a) Series M2 of the Securities to be issued by the
         Corporation shall be entitled the "Subordinated One Month Term Notes -
         Series M2" (the "Series M2 Securities"), maturing one month from the
         date thereof and bearing interest on the principal amount thereof at
         the initial annual interest rate set forth below, compounded daily,
         with the Interest Payment Date on the Series M2 Securities and the
         Regular Record Date for such payment being the maturity date thereof as
         the same may be renewed as provided below;

                  (b) The maturity date of Series M2 Securities issued or
         renewed on any date in a calendar month shall be the matching date in
         the next calendar month or, if no such matching date exists, the last
         date in the next calendar month;

                  (c) Series M2 Securities shall be issued in the following
         denominations at the following annual rates of interest:

                      Any amount of $100 to $50,000                    6.50%
                      Any amount over $50,000 but less                 6.75%
                              than $100,000
                      Any amount over $100,000 but less                7.00%
                              than $500,000
                      Any amount over $500,000                         7.50%

         such rates shall continue in effect for Series M2 Securities unless and
         until adjusted as hereinafter provided;

                  (d) As of the last Business Day (as defined in the Indenture)
         of each month, the Authorized Officer is hereby authorized, in his
         discretion, to adjust the annual interest rate payable on Series M2
         Securities, and the compounding period for such annual interest rate,
         issued or renewed on or after the first day of the second month
         following such adjustment;

                  (e) Series M2 Securities shall be redeemable, in whole or in
         part, at the option of the holder prior to the maturity date thereof as
         provided in the Series M2 Form provided that, upon any partial
         redemption of a Series M2 Security by the holder thereof, the
         outstanding principal amount thereof shall not be less than $100;

                  (f) Upon a partial or full redemption of a Series M2 Security
         by the holder thereof prior to its maturity date, all accrued interest
         otherwise payable on a Series M2 Security shall be forfeited as
         provided in the Series M2 Form; provided that the Chairman of the
         Board, President and Chief Executive Officer, the Executive Vice
         President and Chief Operating Officer, the Treasurer, the Chief
         Financial Officer or any Vice President of the Corporation, may, in his
         sole discretion, waive all or any portion of such forfeited interest on
         behalf of the Corporation by a written notation on the Series M2 Form

<PAGE>

         reflecting the amount of such interest forfeiture that any such officer
         deems it appropriate to waive, signed by the officer waiving the same;

                  (g) Upon any partial redemption of a Series M2 Security by a
         holder or by the Corporation that results in a principal amount that
         would accrue a lower annual rate of interest than such Series M2
         Security would have accrued if it had been original issued at such
         principal amount pursuant to paragraph (c) above (the "New Principal
         Amount"), such Series M2 Security shall be cancelled and a new Series
         M2 Security shall be issued to the holder in a denomination equal to
         the New Principal Amount which shall accrue interest from the date of
         issuance at the annual rate set forth in paragraph (c) above for the
         applicable denomination of such new Series M2 Security;

                  (h) Upon any tender of funds to the Corporation by a holder to
         increase the principal amount of a Series M2 Security that would result
         in a New Principal Amount that would accrue a higher annual rate of
         interest if such Series M2 Security had been originally issued pursuant
         to paragraph (c) above such Series M2 Security, upon receipt of such
         tendered funds from the holder, shall be cancelled and a new Series M2
         Security shall be issued to the holder in a denomination equal to the
         New Principal Amount which shall accrue interest from the date of
         issuance at the annual rate provided for in paragraph (c) above for the
         applicable denomination of such new Series M2 Security; and

                  (i) Series M2 Securities shall be subject to automatic renewal
         from time to time for additional terms of one month each, all in
         accordance with the procedure and with the effect provided in these
         resolutions and the Series M2 Form; and

                  (j) Series M2 Securities shall have such other terms,
         conditions and provisions not inconsistent with the foregoing as are
         set forth in the Series M2 Form and in the Indenture.

                 SERIES T2-6, T2-12, T2-36 AND T2-60 SECURITIES

                  (a) Series T2 of the Securities to be issued by the
         Corporation shall be entitled the "Subordinated Term Notes - Series
         T2-6, T2-12, T2-36 or T2-60", respectively, (the "Series T2
         Securities"), with the numerical designation of each Series T2 Security
         reflecting the number of calendar months after the date of issuance by
         the Corporation that the principal amount of such security shall be
         payable by the Corporation;

                  (b) The maturity date of Series T2 Securities issued or
         renewed on any date in a calendar month shall be as follows:

                  Series T2 Securities                Maturity Date
                  --------------------                -------------

                           T2-6 ..................... The matching date in the
                                                      sixth calendar

<PAGE>

                                                      month following the month
                                                      of the issue date or, if
                                                      no such matching date
                                                      exists, the last date in
                                                      such sixth calendar month

                           T2-12 .................... The matching date in the
                                                      twelfth calendar month
                                                      following the month of the
                                                      issue date or, if no such
                                                      matching date exists, the
                                                      last date in such twelfth
                                                      calendar month

                           T2-36 .................... The matching date in the
                                                      thirty-sixth calendar
                                                      month following the month
                                                      of the issue date or, if
                                                      no such matching date
                                                      exists, the last date in
                                                      such thirty-sixth calendar
                                                      month

                           T2-60 .................... The matching date in the
                                                      sixtieth calendar month
                                                      following the month of the
                                                      issue date or, if no such
                                                      matching date exists, the
                                                      last date in such sixtieth
                                                      calendar month

                  (c) Series T2 Securities shall be issued in the following
         denominations at the following annual rates of interest:

         Series T2-6
         -----------

                      Any amount of $1,000 to $50,000            7.25%
                      Any amount over $50,000 but less           8.00%
                            than $100,000
                      Any amount over $100,000 but               8.00%
                            less than $500,000
                      Any amount over $500,000                   8.00%

<PAGE>

         Series T2-12
         ------------

                      Any amount of $1,000 to $50,000            7.75%
                      Any amount over $50,000 but less           8.00%
                            than $100,000
                      Any amount over $100,000 but               8.00%
                            less than $500,000
                      Any amount over $500,000                   8.00%

         Series T2-36
         ------------

                      Any amount of $1,000 to $50,000            7.75%
                      Any amount over $50,000 but less           8.00%
                            than $100,000
                      Any amount over $100,000 but               8.00%
                            less than $500,000
                      Any amount over $500,000                   8.00%

         Series T2-60
         ------------

                      Any amount of $1,000 to$50,000             7.75%
                      Any amount over $50,000 but less           8.00%
                            than $100,000
                      Any amount over $100,000 but               8.00%
                            less than $500,000

                      Any amount over $500,000                   8.00%

         such rates shall remain in effect unless and until adjusted by as
         hereinafter provided;

                  (d) On the last Business Day of each month, the Authorized
         Officer is hereby authorized, in his discretion, to adjust the annual
         interest rate payable on any of the Series T2 Securities, and the
         compounding period for such annual interest rate, issued or renewed on
         or after the first day of the second month following such adjustment;

                  (e) Accrued interest on Series T2 Securities shall be paid
         monthly, quarterly or at maturity in accordance with the choice
         selected by the purchaser of a Series T2 Security as provided under the
         "Interest Payment Options" in the form of Series T2 Security attached
         hereto as Exhibit C (the "Series T2 Form"), and, if interest on a
         Series T2 Security is payable at maturity, interest shall be compounded
         daily;

                  (f) The Interest Payment Date and the Regular Record Date for
         the payment of accrued interest on a Series T2 Security shall be the
         date as of which interest is payable in accordance with the provisions
         of subparagraph (e) above;

                  (g) Any series of the Series T2 Securities shall be
         redeemable, at the option of the Corporation, in whole or in part, at
         any time as provided in the form of the Series T2 Form and as provided
         in the Indenture;

<PAGE>

                  (h) Any of the Series T2 Securities shall be redeemable, in
         whole or in part, by the holder prior to the maturity date thereof as
         provided, and with the forfeiture of a portion of the accrued interest
         upon redemption prior to the maturity date as set forth in the Series
         T2 Form;

                  (i) Upon any partial redemption of a Series T2 Security by the
         Corporation or the holder thereof pursuant to paragraphs (g) or (h)
         above, the outstanding principal amount thereof shall not be less than
         $1,000;

                  (j) Upon any partial redemption of a Series T2 Security by a
         holder or by the Corporation that results in a New Principal Amount
         that would accrue a lower annual rate of interest than such Series T2
         Security would have accrued if it had been originally issued at such
         principal amount pursuant to paragraph (c) above such Series T2
         Security shall be cancelled and a new Series T2 Security shall be
         issued to the holder in a denomination equal to the New Principal
         Amount which shall accrue interest from the date of issuance at the
         annual rate set forth in paragraph (c) above for the applicable
         denomination of such new Series T2 Security;

                  (k) Series T2 Securities shall be subject to automatic renewal
         from time to time, all in accordance with the procedure and with the
         effect provided in these resolutions and the Series T2 Form; and

                  (l) Series T2 Securities shall have such other terms,
         conditions and provisions not inconsistent with the foregoing as are
         set forth in the Series T2 Form and in the Indenture; and it is further

         RESOLVED, that, upon any adjustment in the interest rates payable on
any series of the Securities pursuant to the foregoing resolution, the
appropriate officers of the Corporation be, and they hereby are, authorized and
directed to: (i) promptly notify the Trustee in writing of such adjusted
interest rates; (ii) cause such adjusted interest rates to be set forth in a
supplement to the Corporation's Prospectus relating to the Securities dated
________ __, 2002 (the "Prospectus"); (iii) cause the most recent of any such
supplements to be delivered to any prospective purchaser of the Securities or to
any existing holder of the Securities with a renewal notice sent to such holder
by the Corporation; and (iv) to cause each such supplement, with the advice and
assistance of the Corporation's counsel, to be filed with the Securities and
Exchange Commission ("Commission") pursuant to the Commission's Rule 424 or as a
post-effective amendment to the Corporation's Form S-1 Registration Statement
relating to the Securities; and it is further

         RESOLVED, that principal and interest on each series of the Securities
shall be paid by the Corporation, and such principal and interest shall be paid
at a location determined by an Authorized Officer, which location may be (i) at
the principal office of the Corporation; (ii) such other place as may be
designated by an Authorized Officer; or (iii) by mailing its check to the

<PAGE>

address of the person entitled thereto as such address shall appear in the
Securities Register; and it is further

         RESOLVED, that each series of the Securities may be surrendered for
registration of transfer or for exchange by the holder at the principal office
of the Corporation at 1524 Pageland Highway, Lancaster, South Carolina 29720;

         RESOLVED, that The Bank of New York, be, and it hereby is, appointed
the agent of the Corporation for the registration, transfer and exchange of the
Securities, and that the corporate trust office of the said Bank in
Jacksonville, Florida, be and it hereby is designated, pursuant to the
provisions of the Indenture, as the office or agency of the Corporation in
Jacksonville, Florida, where the Securities may be delivered by the Corporation
for registration, transfer or exchange; and it is further

         RESOLVED, that the form and terms of the selling agent agreement
between the Corporation and Carolina First Investments, Inc., (the "Selling
Agent Agreement"), a copy of which has been presented to the directors, be, and
they hereby are, approved, with such changes and modification thereto as the
officers executing the same shall deem necessary or desirable; and that the
Chairman of the Board and Chief Executive Officer, the President and Chief
Operating Officer, the Treasurer, and any Vice President be, and each of them
hereby is, authorized and empowered to execute and deliver the Selling Agent
Agreement on behalf of and in the name of the Corporation; and it is further

         RESOLVED, that the corporate seal of this Corporation may be affixed to
any instrument or document executed pursuant to the foregoing resolutions by
impressing or affixing the corporate seal or by imprinting or otherwise
reproducing thereon a facsimile thereof; and it is further

         RESOLVED, that the Chairman of the Board and Chief Executive Officer,
the President and Chief Operating Officer, the Treasurer, any Vice President,
and the Secretary of the Corporation be, and each of them hereby is, authorized
and empowered, in the name and on behalf of the Corporation, to make all such
arrangements, to do, perform and authorize all such acts and things and to
execute and deliver all such officers' certificates and such other instruments
and documents as they, acting with the advice and assistance of the
Corporation's counsel, may deem necessary or appropriate in order to fully
effectuate the purpose of each of the foregoing resolutions (hereby ratifying
and confirming any and all actions taken heretofore or hereafter to accomplish
such purposes).

         This action is effective the ___th day of _______, 2002.

         ____________________________               ____________________________
         James D. Thaxton                           Robert L. Wilson

         ____________________________               ____________________________
         Allan F. Ross                              C. L. Thaxton, Sr.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]