Document:

<PAGE>

                                                                     EXHIBIT 4.2

                                                                  EXECUTION COPY

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                              AMENDED AND RESTATED

                                 TRUST AGREEMENT

                                      among

                       TRIAD FINANCIAL SPECIAL PURPOSE LLC
                                   Depositor,

                           TRIAD FINANCIAL CORPORATION
                                  Administrator
                                       and

                            WILMINGTON TRUST COMPANY
                                  Owner Trustee

                          Dated as of October 29, 2003

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                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                                 <C>
ARTICLE I. DEFINITIONS.......................................................................................        1

       SECTION 1.1. Capitalized Terms........................................................................        1
       SECTION 1.2. Other Definitional Provisions............................................................        2

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

       SECTION 2.1. Name ....................................................................................        3
       SECTION 2.2. Office ..................................................................................        3
       SECTION 2.3. Purposes and Powers......................................................................        3
       SECTION 2.4. Appointment of Owner Trustee.............................................................        4
       SECTION 2.5. Initial Capital Contribution of Trust Estate.............................................        4
       SECTION 2.6. Declaration of Trust.....................................................................        4
       SECTION 2.7. Title to Trust Property..................................................................        5
       SECTION 2.8. Situs of Trust...........................................................................        5
       SECTION 2.9. Representations and Warranties of the Depositor..........................................        5
       SECTION 2.10.Representations and Warranties of the Administrator......................................        6
       SECTION 2.11.Covenants of the Certificateholder.......................................................        7
       SECTION 2.12.Federal Income Tax Treatment of the Trust................................................        8

ARTICLE III. CERTIFICATE AND TRANSFER OF INTEREST............................................................        8

       SECTION 3.1. Ownership ...............................................................................        8
       SECTION 3.2. The Certificate..........................................................................        8
       SECTION 3.3. Authentication of Certificate............................................................        9
       SECTION 3.4. Registration of Transfer and Exchange of Certificate.....................................        9
       SECTION 3.5. Mutilated, Destroyed, Lost or Stolen Certificates........................................       10
       SECTION 3.6. Persons Deemed Certificateholders........................................................       11
       SECTION 3.7. Maintenance of Office or Agency..........................................................       11
       SECTION 3.8. Disposition in Whole But Not in Part.....................................................       11
       SECTION 3.9. ERISA Restrictions.......................................................................       11

ARTICLE IV. VOTING RIGHTS AND OTHER ACTIONS..................................................................       11

       SECTION 4.1. Prior Notice to Holder with Respect to Certain Matters...................................       11
       SECTION 4.2. Action by Certificateholder with Respect to Certain Matters..............................       12
       SECTION 4.3. Restrictions on Certificateholder's Power................................................       12
       SECTION 4.4. Rights of Security Insurer...............................................................       13

ARTICLE V. AUTHORITY AND DUTIES OF OWNER TRUSTEE.............................................................       13

       SECTION 5.1. General Authority........................................................................       13
       SECTION 5.2. General Duties...........................................................................       13
       SECTION 5.3. Action upon Instruction..................................................................       14
       SECTION 5.4. No Duties Except as Specified in this Agreement or in Instructions.......................       14
       SECTION 5.5. No Action Except under Specified Documents or Instructions...............................       15
</TABLE>

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<TABLE>
<S>                                                                                                                 <C>
       SECTION 5.6.   RESTRICTIONS...........................................................................       15

ARTICLE VI. CONCERNING THE OWNER TRUSTEE.....................................................................       15

       SECTION 6.1.   Acceptance of Trusts and Duties........................................................       15
       SECTION 6.2.   Furnishing of Documents................................................................       17
       SECTION 6.3.   Representations and Warranties.........................................................       17
       SECTION 6.4.   Reliance; Advice of Counsel............................................................       17
       SECTION 6.5.   Not Acting in Individual Capacity......................................................       18
       SECTION 6.6.   Owner Trustee Not Liable for Certificate or Receivables................................       18
       SECTION 6.7.   Owner Trustee May Own Notes............................................................       18
       SECTION 6.8.   Payments from Owner Trust Estate.......................................................       18
       SECTION 6.9.   Doing Business in Other Jurisdictions..................................................       19

ARTICLE VII. COMPENSATION OF OWNER TRUSTEE...................................................................       19

       SECTION 7.1.   Owner Trustee's Fees and Expenses......................................................       19
       SECTION 7.2.   Indemnification........................................................................       19
       SECTION 7.3.   Payments to the Owner Trustee..........................................................       20
       SECTION 7.4.   Non-recourse Obligations...............................................................       20

ARTICLE VIII. TERMINATION OF TRUST AGREEMENT.................................................................       20

       SECTION 8.1.   Termination of Trust Agreement.........................................................       20

ARTICLE IX. SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES...........................................       21

       SECTION 9.1.   Eligibility Requirements for Owner Trustee.............................................       21
       SECTION 9.2.   Resignation or Removal of Owner Trustee................................................       21
       SECTION 9.3.   Successor Owner Trustee................................................................       22
       SECTION 9.4.   Merger or Consolidation of Owner Trustee...............................................       23
       SECTION 9.5.   Appointment of Co-Trustee or Separate Trustee..........................................       23

ARTICLE X. MISCELLANEOUS.....................................................................................       24

       SECTION 10.1.  Supplements and Amendments.............................................................       24
       SECTION 10.2.  No Legal Title to Owner Trust Estate in Certificateholder..............................       25
       SECTION 10.3.  Limitations on Rights of Others........................................................       25
       SECTION 10.4.  Notices. 26
       SECTION 10.5.  Severability...........................................................................       27
       SECTION 10.6.  Separate Counterparts..................................................................       27
       SECTION 10.7.  Assignments............................................................................       27
       SECTION 10.8.  No Recourse............................................................................       27
       SECTION 10.9.  No Petition............................................................................       27
       SECTION 10.10. Headings...............................................................................       27
       SECTION 10.11. GOVERNING LAW..........................................................................       27
       SECTION 10.12. Administrator..........................................................................       28
</TABLE>

                                    EXHIBITS

EXHIBIT A         FORM OF CERTIFICATE

                                       ii

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EXHIBIT B         FORM OF CERTIFICATE OF TRUST
EXHIBIT C         FORM OF CERTIFICATE AS TO INITIAL PURCHASE
EXHIBIT D         FORM OF QUALIFIED INSTITUTIONAL BUYER TRANSFEREE'S
                  CERTIFICATE

                                      iii

<PAGE>

                  This AMENDED AND RESTATED TRUST AGREEMENT dated as of October
29, 2003 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 Owner Trustee, (the "Owner Trustee") amends and restates
in its entirety that certain Trust Agreement dated as of August 5, 2003 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.

                  "Benefit Plan" has the meaning assigned to such term in
Section 3.9.

                  "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 Special Purpose LLC.

                  "Certificate of Trust" means the Certificate of Trust in the
form of Exhibit B to be 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
Certificateholder, or the principal corporate trust office of any successor
Owner Trustee (the address of which the successor owner trustee will notify the
Certificateholder).

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

                  "ERISA" has the meaning assigned to such term in Section 3.9.

<PAGE>

                  "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.

                  "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
Article II of the Sale and Servicing Agreement, all funds on deposit from time
to time in the Trust Accounts and all other property of the Trust from time to
time, including any rights of the Owner Trustee and the Trust pursuant to the
Sale and Servicing Agreement.

                  "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.

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

                  "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 October 1, 2003, 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 MBIA Insurance Corporation, or its
successor in interest.

                  "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.

                  "Trust" means the trust established by this Agreement.

                  SECTION 1.2. Other Definitional Provisions.

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                  (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.

                                  ARTICLE II.

                                  Organization

                  SECTION 2.1. Name. There is hereby formed a trust to be known
as "Triad Automobile Receivables Trust 2003-B," 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 Certificateholder.

                  SECTION 2.3. Purposes and Powers.

                  (a)      The purpose of the Trust is, and the Trust will have
the power and authority, to engage in the following activities:

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                           (i)      to issue the Notes pursuant to the Indenture
                                    and the Certificate pursuant to this
                                    Agreement, and to sell the Notes to the
                                    Depositor;

                           (ii)     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
                                    Certificateholder 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;

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

                           (iv)     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

                           (v)      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
                                    Certificateholder 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 this Agreement or the Basic
Documents.

                  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 Holder, 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 will file the
Certificate of Trust with the Secretary of State.

                  The Holder will not have any personal liability for any
liability or obligation of the Trust.

                                       4

<PAGE>

                  SECTION 2.7. 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)      The Holder will not have legal title to any part of
the Trust Property. The Holder is entitled to receive distributions with respect
to its undivided ownership interest therein only in accordance with Article
VIII. No transfer, by operation of law or otherwise, of any right, title or
interest by the 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 2.8. 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 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 2.9. 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 Certificate 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 this Agreement and the Basic Documents.

                  (b)      Due Qualification. It 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 this Agreement and the Basic Documents
requires such qualification.

                                       5

<PAGE>

                  (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 this Agreement and 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 its knowledge, threatened against it before any
court, regulatory body, administrative agency or other tribunal or governmental
instrumentality having jurisdiction over it or its properties (A) asserting the
invalidity of this Agreement or any of the Basic Documents, (B) seeking to
prevent the issuance of the Certificate or the Notes or the consummation of any
of the transactions contemplated by this Agreement or any of the Basic
Documents, (C) seeking any determination or ruling that might materially and
adversely affect its performance of its obligations under, or the validity or
enforceability of, this Agreement or any of the Basic Documents, or (D) seeking
to adversely affect the federal income tax or other federal, state or local tax
characteristics of the Certificate.

                  SECTION 2.10. 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 Administrator makes the following representations and warranties on which
the Owner Trustee relies in accepting the Owner Trust Estate in trust and
executing the Certificate 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 power and
authority to own its properties and to conduct its business as such properties
are currently owned and such business is presently conducted and is proposed to
be conducted pursuant to this Agreement and the Basic Documents.

                                       6

<PAGE>

                  (b)      Due Qualification. It is duly qualified to do
business as a foreign corporation in good standing, and has obtained all
necessary licenses and approvals, in all jurisdictions in which the ownership or
lease of its property, the conduct of its business and the performance of its
obligations under this Agreement and the Basic Documents 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 and deposited with the Trust and the
Administrator has duly authorized such sale and assignment and deposit to the
Trust 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 this Agreement and 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 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 its knowledge, threatened against it before any
court, regulatory body, administrative agency or other tribunal or governmental
instrumentality having jurisdiction over it or its properties (A) asserting the
invalidity of this Agreement or any of the Basic Documents, (B) seeking to
prevent the issuance of the Certificate or the Notes or the consummation of any
of the transactions contemplated by this Agreement or any of the Basic
Documents, (C) seeking any determination or ruling that might materially and
adversely affect its performance of its obligations under, or the validity or
enforceability of, this Agreement or any of the Basic Documents, or (D) seeking
to adversely affect the federal income tax or other federal, state or local tax
attributes of the Certificate.

                  SECTION 2.11. Covenants of the Certificateholder. The
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

                                       7

<PAGE>

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 a bankrupt or insolvent, or consent to the institution of
bankruptcy or insolvency proceedings against the Trust, or file a petition
seeking or consenting to reorganization or relief under any applicable federal
or state law relating to bankruptcy, or consent to the appointment of a
receiver, liquidator, assignee, trustee, sequestrator (or other similar
official) of the Trust or a substantial part of its property, or cause or permit
the Trust to make any assignment for the benefit of its creditors, or admit in
writing its inability to pay its debts generally as they become due, or declare
or effect a moratorium on its debt or take any action in furtherance of any such
action.

                  SECTION 2.12. 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)      Notwithstanding Section 3.8, in the event that the
Trust has two equity owners for federal income tax purposes, the Trust will be
treated as a partnership. At any such time that the Trust has two 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 treatment of the Trust
as a partnership.

                                  ARTICLE III.

                      Certificate and Transfer of Interest

                  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 Certificate. The 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

                                       8

<PAGE>

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. The Certificate will be issuable in
minimum denominations no less than 5% of the certificate balance.

                  SECTION 3.3. Authentication of Certificate. Concurrently with
the initial sale of the Receivables to the Trust pursuant to the Sale and
Servicing Agreement, the Owner Trustee will cause the Certificate 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 signature; such authentication will constitute conclusive evidence
that such Certificate is duly authenticated and delivered hereunder. The
Certificate will be dated the date of its authentication.

                  SECTION 3.4. Registration of Transfer and Exchange of
Certificate. 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 Certificate and of transfers
and exchanges of the Certificate as herein provided. The Owner Trustee will be
the initial Certificate Registrar.

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

                  Upon surrender for registration of transfer of the 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 the 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 the Certificate.

                  To the fullest extent permitted by applicable law, no sale,
pledge or other transfer of a Certificate will be made unless (I) such sale,
pledge or other transfer (i) is made pursuant to

                                       9

<PAGE>

an effective registration statement under the Securities Act and any applicable
state securities laws or (ii) is exempt from the registration requirements under
the Securities Act and such state securities laws and (II) such sale, pledge or
other transfer is made to a Person that satisfies the requirements of paragraph
(a)(2)(ii) of Rule 3a-7 as then in effect or any successor rule ("Rule 3a-7")
under the Investment Company Act. Each prospective purchaser of the Certificate
in the initial sale by the Issuer on the Closing Date will deliver completed and
duly executed transferee's certificate (in the form of Exhibit C) to the Owner
Trustee. 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 D 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 (i) the initial purchase of any
Certificate by the initial purchasers who deliver a transferee's certificate in
the form of Exhibit C and (ii) the purchase of any Certificate by a purchaser
who delivers a Transferee's Certificate in the form of Exhibit D), 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 any transferee made to the Owner Trustee, and upon
such Opinion of Counsel, and will be fully protected in so doing. Any
Certificate Owners 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 Certificate, the Receivables and other matters
regarding the Certificate as the Issuer will reasonably request to meet its
obligations under the preceding sentence.

                  SECTION 3.5. Mutilated, Destroyed, Lost or Stolen
Certificates. If (a) 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 (b)
there will be delivered to the Certificate Registrar and the Owner Trustee such
security or indemnity as may be required by them to save each of them harmless,
then in the absence of notice that such Certificate has been acquired by a bona
fide 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, 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 will constitute conclusive evidence
of an ownership interest in the Trust, as if originally issued, whether or not
the lost, stolen or destroyed Certificate will be found at any time.

                                       10

<PAGE>

                  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
the 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 the
Certificate may be surrendered for registration of transfer or exchange and
where notices and demands to or upon the Owner Trustee in respect of the
Certificate 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 Certificateholder
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. Disposition in Whole But Not in Part. The
Certificate may be transferred in whole but not in part. To the fullest extent
permitted by applicable law, any attempted transfer of the Certificate that
would divide the ownership of the Trust Estate is void.

                  SECTION 3.9. ERISA Restrictions. The Certificate may not be
acquired by or for the account of (i) 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, (ii) a plan
(as defined in Section 4975(e)(1) of the Code) that is subject to Section 4975
of the Code, or (iii) any entity whose underlying assets include assets of a
plan described in (i) or (ii) 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.

                                  ARTICLE IV.

                         Voting Rights and Other Actions

                  SECTION 4.1. Prior Notice to Holder 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 Certificateholder in writing of the proposed
action and the Certificateholder will not have notified the Owner Trustee in
writing prior to the 30th day after such notice is given that the
Certificateholder has withheld consent or provided alternative direction:

                                       11

<PAGE>

                  (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
Certificateholder; 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 Certificateholder.

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

                  SECTION 4.2. Action by Certificateholder with Respect to
Certain Matters. The Owner Trustee will not have the power, except upon the
direction of the Certificateholder 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 the Certificateholder and the
furnishing of indemnification satisfactory to the Owner Trustee by the
Certificateholder.

                  SECTION 4.3. Restrictions on Certificateholder's Power.

                  (a)      The Certificateholder will not direct the Owner
Trustee to take or refrain from taking any action if such action or inaction
would be contrary to any obligation of the Trust or the Owner Trustee under this
Agreement or any of the Basic Documents or would be contrary to Section 2.3 nor
will the Owner Trustee be obligated to follow any such direction, if given.

                  (b)      The Certificateholder will not have any right by
virtue or by availing itself of any provisions of this Agreement to institute
any suit, action, or proceeding in equity or at law upon or under or with
respect to this Agreement or any Basic Document, unless the Certificateholder is
the Instructing Party pursuant to Section 5.3 and unless the Certificateholder
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
Certificateholder 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 30 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
30-day period no request or waiver inconsistent with such written request has
been given to the Owner Trustee pursuant to and in compliance with this Section
or

                                       12

<PAGE>

Section 5.3. For the protection and enforcement of the provisions of this
Section, the Certificateholder and the Owner Trustee are entitled to such relief
as can be given either at law or in equity.

                  SECTION 4.4. 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 (i) remove the Servicer, (ii)
initiate any claim, suit or proceeding by the Trust or compromise any claim,
suit or proceeding brought by or against the Trust, other than with respect to
the enforcement of any Receivable or any rights of the Trust thereunder, (iii)
authorize the merger or consolidation of the Trust with or into any other
statutory trust or other entity (other than in accordance with Section 3.10 of
the Indenture) or (iv) amend the Certificate of Trust (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 Certificateholder 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 $193,000,000, Class A-2 Notes in
the aggregate principal amount of $280,000,000, Class A-3 Notes in the aggregate
principal amount of $210,000,000, Class A-4 Notes in the aggregate principal
amount of $249,000,000 and Class B Notes in the aggregate principal amount of
$92,700,567.30. In addition to the foregoing, the Owner Trustee is authorized,
but will not be obligated, to take all actions required of the Trust pursuant to
the Basic Documents. The Owner Trustee is further authorized from time to time
to take such action as the Instructing Party recommends with respect to the
Basic Documents.

                  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 Holder, 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 hereunder
and 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.

                                       13

<PAGE>

                  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 Certificateholder (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 this Agreement or 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 ten days of such notice (or within
such shorter period of time as reasonably may be specified in such notice or may
be necessary under the circumstances) it may, but will be under no duty to, take
or refrain from taking such action, not inconsistent with this Agreement or the
Basic Documents, as it will deem to be in the best interests of the
Certificateholder, 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 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
this Agreement or the Basic Documents, as it will deem to be in the best
interests of the Certificateholder, 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

                                       14

<PAGE>

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 (i) in
accordance with the powers granted to and the authority conferred upon the Owner
Trustee pursuant to this Agreement, (ii) in accordance with the Basic Documents
or (iii) in accordance with any document or instruction delivered to the Owner
Trustee pursuant to Section 5.3.

                  SECTION 5.6. Restrictions. The Owner Trustee 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. The Certificateholder will not direct the Owner Trustee to take action
that would violate the provisions of this Section.

                                  ARTICLE VI.

                          Concerning the Owner Trustee

                  SECTION 6.1. Acceptance of Trusts and Duties. The Owner
Trustee accepts the trusts hereby created and agrees to perform its duties
hereunder with respect to such trusts but only upon the terms of this Agreement.
The Owner Trustee also agrees to disburse all moneys actually received by it
constituting part of the Owner Trust Estate upon the terms of the Basic
Documents and this Agreement. The Owner Trustee 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, (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):

                                       15

<PAGE>

                  (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 Certificateholder;

                  (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 Certificate, and the Owner Trustee will in
no event assume or incur any liability, duty or obligation to the Security
Insurer, Trustee, 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 this
Agreement or 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 Certificateholder, unless such
Instructing Party or Certificateholder has offered to the Owner Trustee security
or indemnity satisfactory to it against the costs, expenses and liabilities that
may be incurred by the Owner Trustee therein or thereby. The right of the Owner
Trustee to perform any discretionary act enumerated in this Agreement or in any
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 the Agreement,
and no implied covenants or obligations with respect to the Security Insurer or
Instructing Party shall be read into this Agreement or the other Basic

                                       16

<PAGE>

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 the 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.

                  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 this
Agreement or the Basic Documents, the Owner Trustee (i) may act directly or
through its agents or attorneys pursuant to agreements

                                       17

<PAGE>

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 Certificate or
Receivables. The recitals contained herein and in the Certificate (other than
the signature and countersignature of the Owner Trustee on the Certificate) will
be taken as the statements of the Certificateholder and the Owner Trustee
assumes no responsibility for the correctness thereof. The Owner Trustee makes
no representations as to the validity or sufficiency of this Agreement, of any
Basic Document or of the Certificate (other than the signature and
countersignature of the Owner Trustee on the 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 Certificateholder under this Agreement or the Noteholders under the
Indenture, including, without limitation: the existence, condition and ownership
of any Financed Vehicle; the existence and enforceability of any insurance
thereon; the existence and contents of any Receivable on any computer or other
record thereof; the validity of the assignment of any Receivable to the Trust or
of any intervening assignment; the completeness of any Receivable; the
performance or enforcement of any Receivable; the compliance by the 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 this Agreement or 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
Owner 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

                                       18

<PAGE>

liable for any amounts payable under this Agreement or any of the Basic
Documents to which the Trust or the Owner Trustee is a party.

                  SECTION 6.9. Doing Business in Other Jurisdictions.
Notwithstanding anything contained 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, (i) 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; (ii) 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 (iii) 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 Parties") from and against, any and all
costs, expenses, losses, damages, claims and liabilities (collectively,
"Expenses"), arising out of or resulting from this Agreement, 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 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, the Owner Trustee's choice of legal
counsel will be subject to the approval of Triad which approval will not be
unreasonably withheld.

                                       19

<PAGE>

                  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 Holder.

                                 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 latest 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
Certificateholder of all amounts required to be paid to it pursuant to this
Agreement and the payment to the Security Insurer of all amounts payable or
reimbursable to it 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. The bankruptcy, liquidation,
dissolution, death or incapacity of the Certificateholder will not (x) operate
to terminate this Agreement or the Trust, nor (y) entitle the
Certificateholder's legal representatives or heirs to claim an accounting or to
take any action or proceeding in any court for a partition or winding up of all
or any part of the Trust or Owner Trust Estate nor (z) otherwise affect the
rights, obligations and liabilities of the parties hereto.

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

                  (c)      Notice of any termination of the Trust, specifying
the Distribution Date upon which the Certificateholder will surrender the
Certificate to the Indenture Trustee for payment of the final distribution and
cancellation, will be given by the Owner Trustee by letter to the
Certificateholder mailed within five Business Days of receipt of notice of such
termination from the Servicer given pursuant to Section 10.1(c) of the Sale and
Servicing Agreement, stating (i) the Distribution Date upon or with respect to
which final payment of the Certificate will be made upon presentation and
surrender of the Certificate at the office of the Indenture 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 the Certificate at the office
of the Indenture Trustee therein specified. The Owner Trustee will give such
notice to the Indenture Trustee at the time such

                                       20

<PAGE>

notice is given to the Certificateholder. Upon presentation and surrender of the
Certificate, the Indenture Trustee will cause to be distributed to the
Certificateholder amounts distributable on such Distribution Date pursuant to
Section 5.7 of the Sale and Servicing Agreement.

                  If the Certificateholder does not surrender the 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
the Certificateholder to surrender the 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 the 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 Holder.

                  (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, the combined capital and surplus of such
corporation will be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. In case at any time the
Owner Trustee will cease to be eligible in accordance with the provisions of
this Section, 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 have accepted appointment within 30 days
after the giving of such notice of resignation, the resigning

                                       21

<PAGE>

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 will remove 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 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 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 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, the Servicer will mail notice of the successor of such
Owner Trustee to the Certificateholder, the Indenture Trustee, the Noteholders
and the Rating Agencies. If the Servicer will fail 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 Servicer.

                                       22

<PAGE>

                  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, such powers, duties, obligations, rights and trusts as the
Servicer and the Owner Trustee may consider necessary or desirable. If the
Servicer will not have joined in such appointment within 15 days after the
receipt by it of a request so to do, the Owner Trustee subject, unless 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:

                           (i)      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 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;

                                       23

<PAGE>

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

                           (iii)    the Servicer and the Owner Trustee acting
                                    jointly may at any time accept the
                                    resignation of or remove any separate
                                    trustee or co-trustee.

                  Any notice, request or other writing given to the Owner
Trustee 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. 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 will 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 Certificateholder, (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 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 Certificateholder

                                       24

<PAGE>

(which consent of any Holder of a Certificate or Note given pursuant to this
Section or pursuant to any other provision of this Agreement will be conclusive
and binding on such Holder) 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
Certificateholder; provided, however, that, subject to the express rights of the
Security Insurer under the Basic Documents, 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 the Certificateholder or (b)
reduce the aforesaid percentage of the Outstanding Amount of the Notes and the
Certificate Balance required to consent to any such amendment, without the
consent of the Holders of all the outstanding Notes and the Certificateholder.

                  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 Certificateholder, the Indenture Trustee and each of
the Rating Agencies.

                  It will not be necessary for the consent of Certificateholder,
the Noteholders or the Indenture Trustee pursuant to this Section 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 Certificateholder provided for in this
Agreement or in any other Basic Document) and of evidencing the authorization of
the execution thereof by Certificateholder 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
Certificateholder. The Certificateholder will not have legal title to any part
of the Owner Trust Estate. The Certificateholder 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 the 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.

                  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 Certificateholder, 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

                                       25

<PAGE>

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, California 92647
                           Attention: Chief Financial Officer

                  If to the Owner Trustee:
                           Wilmington Trust Company
                           Rodney Square North
                           1100 North Market Street
                           Wilmington, Delaware 19801
                           Attention: Chief Financial Officer

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

                  If to the Security Insurer:
                           Security Insurer
                           MBIA Insurance Corporation
                           113 King Street
                           Armonk, NY 10504
                           Attention: Insured Portfolio Management - Structured
                                      Finance (IPM-SF)
                                      Triad Automobile Receivables Trust 2003-B
                           Facsimile:    (914) 765-3810
                           Confirmation: (914) 765-3781

(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 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

                                       26

<PAGE>

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
the 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. The Certificateholder by accepting
a Certificate acknowledges that the 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 this
Agreement, the Certificate or the Basic Documents.

                  SECTION 10.9. No Petition. To the fullest extent permitted by
applicable law, The Owner Trustee, 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
Certificate, the Notes, this Agreement or any other 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 THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER WILL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS.

                                       27

<PAGE>

                  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.]

                                       28

<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/ JANEL R. HAVRILLA
                                ---------------------------------------------
                                Name: Janel R. Havrilla
                                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: Chief Financial Officer

                     [Amended and Restated Trust Agreement]

<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 or used automobiles, vans or 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 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 UNDER THE SECURITIES
ACT, SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE TO A PERSON WHO THE TRANSFEROR
REASONABLY BELIEVES AFTER DUE INQUIRY IS A "QUALIFIED INSTITUTIONAL BUYER" (AS
DEFINED IN RULE 144A), ACTING FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF
OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED
INSTITUTIONAL BUYERS) TO WHOM NOTICE IS GIVEN THAT THE SALE, PLEDGE OR TRANSFER
IS BEING MADE IN RELIANCE ON RULE 144A, OR (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

<PAGE>

TRUSTEE WILL REQUIRE THAT BOTH THE PROSPECTIVE TRANSFEROR AND THE PROSPECTIVE
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
PERCENTAGE 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 Triad Financial Special Purpose LLC is the
registered owner of a nonassessable, fully-paid, beneficial ownership interest
in certain distributions of Triad Automobile Receivables Trust 2003-B (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 August 5,
2003, as amended and restated as of October 29, 2003 (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 the duly authorized Certificate designated as "Asset Backed
Certificate" (herein called the "Certificate"). Also issued under the Indenture,
dated as of October 1, 2003, between the Trust, and JPMorgan Chase Bank, as
trustee, are five classes of Notes designated as "Class A-1 1.13% Asset Backed
Notes" (the "Class A-1 Notes"), "Class A-2 1.66% Asset Backed

                                      A-2
<PAGE>

Notes" (the "Class A-2 Notes"), "Class A-3 2.48% Asset Backed Notes" (the "Class
A-3 Notes"),"Class A-4 3.20% Asset Backed Notes" (the "Class A-4 Notes") and the
Class B 8.00% Asset Backed Notes" (the "Class B 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 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, vans or light duty trucks (the "Receivables"), all monies
due thereunder on or 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, all right, to and interest of
the Depositor in and to the Purchase Agreement dated as of October 1, 2003
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 Indenture 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 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, 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 2003-B

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

Dated: October 29, 2003            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 but solely as         not in its individual
 Owner Trustee of the Trust                          capacity but solely as
                                                     Owner Trustee of the Trust

By: _________________________                        By: _______________________
         Authenticating Agent                            Authorized Signatory

By: _________________________
        Authorized Signatory

                                      A-4

<PAGE>

                            (Reverse of Certificate)

         The Certificate does not represent an obligation of, or an interest in,
the Depositor, 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 Trust Agreement, the
Indenture or 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 Note Majority and the Certificateholder. 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 the
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, 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.

         The obligations and responsibilities created by the Trust Agreement and
the Trust created thereby will terminate upon the payment to the
Certificateholder of all amounts required to be paid to it pursuant to the Trust
Agreement and the Sale and Servicing Agreement and the disposition of all
property held as part of the Trust. The Servicer of the Receivables 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 the Certificate; however, such right
of purchase is exercisable, subject to certain restrictions,

                                      A-5
<PAGE>

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

                                     FORM OF

                              CERTIFICATE OF TRUST

                                       OF

                    TRIAD AUTOMOBILE RECEIVABLES TRUST 2003-B

                  THIS Certificate of Trust of TRIAD AUTOMOBILE RECEIVABLES
TRUST 2003-B (the "Trust") is being duly executed and filed on behalf of the
Trust 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 by this
Certificate of Trust is "Triad Automobile Receivables Trust 2003-B."

                  2.       Delaware Trustee. The name and business address of
the trustee of the Trust in the State of Delaware is Wilmington Trust Company.

                  3.       Effective Date. This Certificate of Trust will 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, not in its
                                   individual capacity but solely as trustee of
                                   the Trust

                                   By: _________________________________________
                                       Name:
                                       Title:

                                      B-1

<PAGE>

                                                                       EXHIBIT C

                  [FORM OF CERTIFICATE AS TO INITIAL PURCHASE]

                                     [date]

Triad Automobile Receivables Trust 2003-B
c/o Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington Delaware 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 2003-B,
                           Trust Certificate

         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 Amended and Restated Trust Agreement, dated as of October 29,
2003 (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 Owner Trustee (the "Owner
Trustee"), relating to the Triad Automobile Receivables Trust 2003-B
Certificate, the Buyer advises you as follows:

                           (i)      it (a) has such knowledge and experience in
                                    financial and business matters that it is
                                    capable of evaluating the merits and risks
                                    of its investment in the Certificate and is
                                    able to bear the economic risks of such
                                    investment; (b) is a "qualified
                                    institutional buyer" as that term is defined
                                    in Rule 144A under the Securities Act of
                                    1933, as amended, and is acquiring
                                    beneficial ownership of the Certificate for
                                    its own account or for the account of
                                    another "qualified institutional buyer"; (c)
                                    satisfies the requirements of paragraph
                                    (a)(2)(ii) of Rule 3a-7 under the Investment
                                    Company Act of 1940, as amended, and (d)
                                    understands that the Administrator, the
                                    Depositor and the Owner Trustee are relying
                                    on such representations in connection with
                                    the issuance of the Certificate;

<PAGE>

                           (ii)     it has reviewed the Prospectus Supplement
                                    (including the section captioned "Risk
                                    Factors" therein) and such other materials
                                    and information with respect to the
                                    Certificate, the Depositor and the
                                    Administrator as it deems necessary and has
                                    been afforded the opportunity to make
                                    inquiry of the Depositor and the
                                    Administrator and to receive answers, and
                                    has received all information requested;

                           (iii)    it understands that the Certificate have not
                                    been registered or qualified under the 1933
                                    Act or the securities laws of any state;

                           (iv)     it has not distributed the Prospectus
                                    Supplement or any other materials relating
                                    to the Certificate to anyone other than its
                                    counsel or other advisor, and no one other
                                    than such counsel or advisor has used its
                                    copies of such documents; and

                           (v)      it is not, and is not acting on behalf of or
                                    investing the assets of, (x) 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, (y) 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 (z)
                                    any entity whose underlying assets include
                                    assets of a plan described in (x) or (y)
                                    above by reason of such plan's investment in
                                    the entity (including, without limitation,
                                    an insurance company general account).

                                        Very truly yours,

                                        [BUYER]

                                        By: ____________________________________
                                        Name:
                                        Title:

                                      C-2

<PAGE>

                                                                       EXHIBIT D

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

                                     [date]

Triad Automobile Receivables Trust 2003-B
c/o Wilmington Trust Company, as Owner Trustee
Rodney Square North
1100 North Market Street
Wilmington, Delaware 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 2003-B,
                           Trust Certificate

         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 Amended and Restated Trust Agreement, dated as of October 29,
2003 (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 (the "Owner Trustee"),
relating to the Triad Automobile Receivables Trust 2003-A Certificate, the Buyer
advises you as follows: (i) the Buyer is a "qualified institutional buyer" as
that term is defined in Rule 144A under the Securities Act of 1933, as amended
(the "1933 Act") and is acquiring beneficial ownership of the Certificate for
its own account or for the account of another "qualified institutional buyer";
and (ii) the Buyer satisfies the requirements of paragraph (a)(2)(ii) of Rule
3a-7 under the Investment Company Act of 1940, as amended (the "1940 Act"). In
addition to the foregoing, you may rely on the information provided in Annex 1
or 2, as applicable, attached hereto and incorporated herein.

         The Buyer understands that the 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 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 notes similar to the

                                      D-1

<PAGE>

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   _____

                                      D-2

<PAGE>

                                                            ANNEX 1 TO EXHIBIT D

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

             [For Buyers Other Than Registered Investment Companies]

         The undersigned hereby certifies as follows to the parties listed in
the "Qualified Institutional Buyer" Transferee's Certificate to which this
certification relates with respect to the Rule 144A Securities described
therein:

         1.       As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.

         2. In connection with purchases by the Buyer, the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933 ("Rule 144A") because (i) the Buyer owned and/or invested on a
discretionary basis $_____________(1) in securities (except for the excluded
securities referred to below) as of the end of the Buyer's most recent fiscal
year (such amount being calculated in accordance with Rule 144A) and (ii) the
Buyer satisfies the criteria in the category marked below.

         -        Corporation, etc. The Buyer is a corporation (other than a
                  bank, savings and loan association or similar institution),
                  Massachusetts or similar business trust, partnership, or
                  charitable organization described in Section 501(c)(3) of the
                  Internal Revenue Code of 1986, as amended.

         -        Bank. The Buyer (a) is a national bank or banking institution
                  organized under the laws of any State, territory or the
                  District of Columbia, the business of which is substantially
                  confined to banking and is supervised by the State or
                  territorial banking commission or similar official or is a
                  foreign bank or equivalent institution, and (b) has an audited
                  net worth of at least $25,000,000 as demonstrated in its
                  latest annual financial statements, a copy of which is
                  attached hereto.

         -        Savings and Loan. The Buyer (a) is a savings and loan
                  association, building and loan association, cooperative bank,
                  homestead association or similar institution, which is
                  supervised and examined by a State or Federal authority having
                  supervision over any such institutions or is a foreign savings
                  and loan association or equivalent institution and (b) has an
                  audited net worth of at least $25,000,000 as demonstrated in
                  its latest annual financial statements, a copy of which is
                  attached hereto.

         -        Broker-dealer. The Buyer is a dealer registered pursuant to
                  Section 15 of the Securities Exchange Act of 1934.

______________________________

                  (1)      Buyer must own and/or invest on a discretionary basis
at least $100,000,000 in securities unless Buyer is a dealer, and, in that case,
Buyer must own and/or invest on a discretionary basis at least $10,000,000 in
securities.

                                      D-3

<PAGE>

         -        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 (i)
securities of issuers that are affiliated with the Buyer, (ii) securities that
are part of an unsold allotment to or subscription by the Buyer, if the Buyer is
a dealer, (iii) bank deposit notes and certificates of deposit, (iv) loan
participations, (v) repurchase agreements, (vi) securities owned but subject to
a repurchase agreement and (vii) currency, interest rate and commodity swaps.

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

                                      D-4

<PAGE>

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 Rule 144A Securities, the
Buyer will notify each of the parties to which this certification is made of any
changes in the information and conclusions herein. Until such notice is given,
the Buyer's purchase of Rule 144A Securities will constitute a reaffirmation of
this certification as of the date of such purchase. In addition, if the Buyer is
a Bank or Savings and Loan as provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

                                   _____________________________________________
                                   Print Name of Buyer

                                   By: _________________________________________
                                       Name:
                                       Title:

                                   Date: _______________________________________

                                      D-5

<PAGE>

                                                            ANNEX 2 TO EXHIBIT D

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

              [For Buyers that are Registered Investment Companies]

         The undersigned hereby certifies as follows to the parties listed in
the "Qualified Institutional Buyer" Transferee's Certificate to which this
certification relates with respect to the Rule 144A Securities described
therein:

         1.       As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933 ("Rule 144A"), because Buyer is part of a Family of
Investment Companies (as defined below), is such an officer of the Buyer.

         2.       In connection with purchases by Buyer, the Buyer is a
"qualified institutional buyer" as defined in SEC Rule 144A because (i) the
Buyer is an investment company registered under the Investment Company Act of
1940, and (ii) as marked below, the Buyer alone, or the Buyer's Family of
Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining the amount of securities owned by the
Buyer or the Buyer's Family of Investment Companies, the cost of such securities
was used, except (i) where the Buyer or the Buyer's Family of Investment
Companies reports its securities holdings in its financial statements on the
basis of their market value, and (ii) no current information with respect to the
cost of those securities has been published. If clause (ii) in the preceding
sentence applies, the securities may be valued at market.

         -        The Buyer owned $________________ in securities (other than
                  the excluded securities referred to below) as of the end of
                  the Buyer's most recent fiscal year (such amount being
                  calculated in accordance with Rule 144A).

         -        The Buyer is part of a Family of Investment Companies which
                  owned in the aggregate $__________ in securities (other than
                  the excluded securities referred to below) as of the end of
                  the Buyer's most recent fiscal year (such amount being
                  calculated in accordance with Rule 144A).

         3.       The 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

                                      D-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 (i)
securities of issuers that are affiliated with the Buyer or are part of the
Buyer's Family of Investment Companies, (ii) bank deposit notes and certificates
of deposit, (iii) loan participations, (iv) repurchase agreements, (v)
securities owned but subject to a repurchase agreement and (vi) currency,
interest rate and commodity swaps.

         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 Rule 144A Securities, the
undersigned will notify each of the parties to which this certification is made
of any changes in the information and conclusions herein. Until such notice is
given, the Buyer's purchase of Rule 144A Securities will constitute a
reaffirmation of this certification by the undersigned as of the date of such
purchase.

                                   _____________________________________________
                                          Print Name of Buyer or Adviser

                                   By: _________________________________________
                                       Name:
                                       Title:

                                   IF AN ADVISER:

                                   _____________________________________________
                                          Print Name of Buyer

                                   Date: _______________________________________

                                      D-7<PAGE>

                                                                     EXHIBIT 4.3

                                                                  EXECUTION COPY

                               SALE AND SERVICING

                                    AGREEMENT

                                      among

                   TRIAD AUTOMOBILE RECEIVABLES TRUST 2003-B,

                                     Issuer,

                      TRIAD FINANCIAL SPECIAL PURPOSE LLC,

                                   Depositor,

                          TRIAD FINANCIAL CORPORATION,

                             Servicer and Custodian

                                       and

                              JPMORGAN CHASE BANK,

                      Backup Servicer and Indenture Trustee

                           Dated as of October 1, 2003

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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.......................................................       16

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..........................................................       21

     SECTION 4.1.           Duties of the Servicer..............................................................       21
     SECTION 4.2.           Collection of Receivable Payments; Modifications of Receivables; Lockbox
                            Agreement...........................................................................       22
     SECTION 4.3.           Realization upon Receivables........................................................       25
     SECTION 4.4.           Insurance...........................................................................       26
     SECTION 4.5.           Maintenance of Security Interests in Vehicles.......................................       27
     SECTION 4.6.           Covenants, Representations, and Warranties of Servicer..............................       28
     SECTION 4.7.           Purchase of Receivables Upon Breach of Covenant.....................................       29
     SECTION 4.8.           Total Servicing Fee; Payment of Certain Expenses by Servicer........................       29
     SECTION 4.9.           Servicer's Certificate..............................................................       30
     SECTION 4.10.          Annual Statement as to Compliance, Notice of Servicer Termination Event.............       30
     SECTION 4.11.          Annual Independent Accountants' Report..............................................       31
     SECTION 4.12.          Access to Certain Documentation and Information Regarding Receivables...............       31
     SECTION 4.13.          Reserved............................................................................       32
     SECTION 4.14.          Fidelity Bond and Errors and Omissions Policy.......................................       32

ARTICLE V Trust Accounts; Distributions; Statements to Noteholders..............................................       32

     SECTION 5.1.           Establishment of Trust Accounts.....................................................       32
     SECTION 5.2.           [Reserved]..........................................................................       34
     SECTION 5.3.           Certain Reimbursements to the Servicer..............................................       34
     SECTION 5.4.           Application of Collections..........................................................       34
     SECTION 5.5.           Spread Account......................................................................       34
     SECTION 5.6.           Additional Deposits.................................................................       35
     SECTION 5.7.           Distributions.......................................................................       35
     SECTION 5.8.           Note Distribution Account...........................................................       37
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     SECTION 5.9.           Reserved............................................................................       38
     SECTION 5.10.          Statements to Noteholders...........................................................       38
     SECTION 5.11.          Optional Deposits by the Insurer....................................................       39

ARTICLE VI The Note Policy......................................................................................       40

     SECTION 6.1.           Claims Under Note Policy............................................................       40
     SECTION 6.2.           Preference Claims Under Note Policy.................................................       41
     SECTION 6.3.           Surrender of Note Policy............................................................       42

ARTICLE VII The Depositor.......................................................................................       42

     SECTION 7.1.           Representations of Depositor........................................................       42
     SECTION 7.2.           Organizational Existence............................................................       43
     SECTION 7.3.           Liability of Depositor..............................................................       44
     SECTION 7.4.           Merger or Consolidation of, or Assumption of the Obligations of, Depositor..........       44
     SECTION 7.5.           Limitation on Liability of Depositor and Others.....................................       44
     SECTION 7.6.           Ownership of the Certificates or Notes..............................................       44

ARTICLE VIII The Servicer.......................................................................................       44

     SECTION 8.1.           Representations of Servicer.........................................................       44
     SECTION 8.2.           Liability of Servicer; Indemnities..................................................       46
     SECTION 8.3.           Merger or Consolidation of, or Assumption of the Obligations of the Servicer
                            or Backup Servicer..................................................................       46
     SECTION 8.4.           Limitation on Liability of Servicer, Backup Servicer and Others.....................       47
     SECTION 8.5.           Delegation of Duties................................................................       48
     SECTION 8.6.           Servicer and Backup Servicer Not to Resign..........................................       49

ARTICLE IX Default..............................................................................................       49

     SECTION 9.1.           Servicer Termination Event..........................................................       49
     SECTION 9.2.           Consequences of a Servicer Termination Event........................................       50
     SECTION 9.3.           Appointment of Successor............................................................       51
     SECTION 9.4.           Notification to Noteholders.........................................................       52
     SECTION 9.5.           Waiver of Past Defaults.............................................................       52

ARTICLE X Termination...........................................................................................       52

     SECTION 10.1.          Optional Purchase of All Receivables................................................       52

ARTICLE XI Administrative Duties of the Servicer................................................................       53

     SECTION 11.1.          Administrative Duties...............................................................       53
     SECTION 11.2.          Records.............................................................................       55
     SECTION 11.3.          Additional Information to be Furnished to the Issuer................................       55

ARTICLE XII Miscellaneous Provisions............................................................................       55

     SECTION 12.1.          Amendment...........................................................................       55
     SECTION 12.2.          Protection of Title to Trust........................................................       56
     SECTION 12.3.          Notices.............................................................................       58
     SECTION 12.4.          Assignment..........................................................................       59
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SECTION 12.5.          Limitations on Rights of Others.....................................................       59
SECTION 12.6.          Severability........................................................................       59
SECTION 12.7.          Separate Counterparts...............................................................       60
SECTION 12.8.          Headings............................................................................       60
SECTION 12.9.          Governing Law.......................................................................       60
SECTION 12.10.         Assignment to Indenture Trustee.....................................................       60
SECTION 12.11.         Nonpetition Covenants...............................................................       60
SECTION 12.12.         Limitation of Liability of Owner Trustee and Indenture Trustee......................       60
SECTION 12.13.         Independence of the Servicer........................................................       61
SECTION 12.14.         No Joint Venture....................................................................       61
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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 October 1, 2003,
among TRIAD AUTOMOBILE RECEIVABLES TRUST 2003-B, 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, a New York
banking corporation, 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

<PAGE>

Liquidated Receivable prior to the end of the preceding Collection Period and
(ii) any Receivable 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.

                  "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.

                  "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 other documents and certificates delivered in connection
therewith.

                  "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.

                  "Certificateholder" means the Person in whose name the
Certificate is registered.

                  "Class" means the Class A-1 Notes, the Class A-2 Notes, the
Class A-3 Notes, the Class A-4 Notes or the Class B 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.

                                       2

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                  "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 (xiii) 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; minus (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 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), (ii) the Principal Balance of all Receivables that
became Liquidated Receivables during the related Collection Period (other than
Purchased Receivables), (iii) the 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) and (vii), 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

                                       3

<PAGE>

sources other than the Note Policy minus (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 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.

                  "Class B Notes" has the meaning assigned to such term in the
Indenture.

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

                  "Class B Noteholders' Interest Carryover Amount" means, for
any Determination Date, all or any portion of the Class B Noteholders' Interest
Distributable Amount 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 B Notes
from the preceding Distribution Date to but excluding the related Distribution
Date.

                  "Class B Noteholders' Monthly Interest Distributable Amount"
means, for any Distribution Date, the interest accrued during the applicable
interest period on the principal amount of the Class B 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.

                  "Closing Date" means October 29, 2003.

                  "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.

                                       4

<PAGE>

                  "Collection Period" means, with respect to the first
Distribution Date, the period beginning on the close of business on September
30, 2003 and ending on the close of business on October 31, 2003. 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: Institutional Trust Services - Triad
2003-B.

                  "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 (i) the excess of the
Receivable's Principal Balance immediately prior to the order over the
Receivable's Principal Balance as reduced; and/or (ii) if the court issued an
order reducing the effective interest rate on the Receivable, the excess of the
Receivable Principal Balance immediately prior to the order over the
Receivable's net present value - using as the discount rate the higher of the
APR on the Receivable or the rate of interest, if any, specified by the court in
the order - of the scheduled payments as so modified or restructured. A Cram
Down Loss is deemed to have occurred on the order's issuance date.

                  "Cumulative Net Loss Ratio" means the ratio, expressed as a
percentage, computed by dividing (i) Cumulative Net Losses by (ii) the Original
Pool Balance.

                                       5

<PAGE>

                  "Cumulative Net Losses" means the aggregate principal balance
of all Net Liquidation Losses for each Collection Period from the Closing Date
to and including the then current Collection Period.

                  "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 September 30, 2003.

                  "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 all or more than 10% 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 3rd 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 November 12,
2003.

                  "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

                                       6

<PAGE>

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 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.

                                       7

<PAGE>

                  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.

                  "Eligible Servicer" means, Triad Financial Corporation, as
Servicer, JPMorgan Chase Bank, 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 November 2004 Distribution Date, (ii) the Class A-2
Notes, the February 2007 Distribution Date, (iii) the Class A-3 Notes, the March
2008 Distribution Date, (iv) the Class A-4 Notes, the December 2010 Distribution
Date and (v) the Class B Notes, the December 2010 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.

                  "Fitch" means Fitch Ratings, or its successor.

                  "Indenture" means the Indenture dated as of October 1, 2003,
between the Issuer and JPMorgan Chase Bank, as Indenture Trustee, as the same
may be amended and supplemented from time to time.

                  "Indenture Trustee" means JPMorgan Chase Bank, 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.

                  "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

                                       8

<PAGE>

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 October 29, 2003, 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 MBIA Insurance Corporation, a stock insurance
corporation incorporated under the laws of the State of New York, 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 state law relating to insolvency, bankruptcy, rehabilitation, liquidation or
reorganization which is final and nonappealable; or

         (c)      a court of competent jurisdiction, the New York 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

                                       9

<PAGE>

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, 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.

                  "Interest Rate" means, with respect to (i) the Class A-1
Notes, 1.13% per annum, (ii) the Class A-2 Notes, 1.66% per annum, (iii) the
Class A-3 Notes, 2.48% per annum, (v) the Class A-4 Notes, 3.20% per annum and
(vi) the Class B Notes, 8.00% 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,
Class A-4 Notes and Class B 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 2003-B, 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.

                  "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 Vehicles have
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 all amounts it expects to be recovered have been received.

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

                  "Lockbox Agreement" means the Amended and Restated Master
Account Agreement, dated as of August l, 2002, by and among Triad, the Lockbox
Bank 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 "Lockbox Agreement" will mean such other agreement, in form and
substance acceptable to the Controlling Party, among the Servicer, the Indenture
Trustee and the Lockbox Bank.

                                       10

<PAGE>

                  "Lockbox 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.

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

                  "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 of Receivables 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, 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 such 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 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.

                                       11

<PAGE>

                  "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 outstanding 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 and Class
B Notes.

                  "Notes" means the Class A Notes and the Class B Notes.

                  "Obligor" on a Receivable means the purchaser or
co-purchaser(s) of the 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, the sum of $1,024,700,567.30 (which is the Pool Balance as of the
Cutoff Date).

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

                  "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.

                                       12

<PAGE>

                  "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.

                  "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 (xiii) of Section 5.7(a).

                  "Program" has the meaning set forth in Section 4.11.

                  "Purchase Agreement" means the Purchase Agreement between the
Depositor and Triad, dated as of October 1, 2003, as such Purchase Agreement may
be amended from time to time.

                  "Purchase Amount" means, with respect to a Receivable, the
Principal Balance as of the date 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 so long as JPMorgan Chase Bank 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, Standard & Poor's and Fitch. 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 of the Rating Agencies has notified the Servicer, the Depositor, the
Insurer, the Owner Trustee and the Indenture Trustee in writing that such action
will not result in a reduction or withdrawal of the then current rating of any
Class of Notes.

                  "Realized Losses" means, with respect to any Receivable that
becomes a Liquidated Receivable, the excess of the Principal Balance of the
Liquidated Receivable over its Net Liquidation Proceeds to the extent allocable
to principal.

                  "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" means, with respect to each Distribution Date,
the Business Day immediately preceding such Distribution Date, unless otherwise
specified in the Agreement.

                  "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.

                                       13

<PAGE>

                  "Required Pro Forma Class A Note Balance" means, with respect
to any Distribution Date, a dollar amount equal to the product of (x) 87% and
(y) 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 Soldiers' and Sailors' Civil Relief
Act of 1940 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, the Class
B Notes and the Certificates.

                  "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

                                       14

<PAGE>

Collection Period, equal to any shortfall in the payment of amounts described in
clauses (i) through (vii) of Section 5.7(a).

                  "Spread Account Initial Deposit" means an amount equal to 3%
of the aggregate principal balance of the Receivables on the Cutoff Date (which
is equal to $30,741,017.02).

                  "Spread Account Requirement" means, with respect to the
Closing Date, the Spread Account Initial Deposit and with respect to any
Distribution Date thereafter, an amount equal to the greater of (x) 3.00% of the
Aggregate Principal Balance at the end of the prior Collection Period and (y)
2.00% of the Original Pool Balance or, if a Spread Cap Event (as such term is
defined in the Insurance Agreement) has occurred and is continuing, the greater
of (a) 6.00% of the Aggregate Principal Balance at the end of the prior
Collection Period and (b) 3.00% of the Original Pool Balance.

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

                  "Statutory Trust Statute" 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).

                  "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 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

                                       15

<PAGE>

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 August
5, 2003 among Triad, as the Administrator, the Depositor and the Owner Trustee,
as amended and restated as of October 29, 2003 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 this Agreement or any of the Basic Documents on behalf of the
Owner Trustee.

                  "Trust Property" means the property and proceeds conveyed
pursuant to Section 2.1, together with certain monies paid on or after the
Cutoff Date, the Collection Account (including all Eligible Investments therein
and all proceeds therefrom), the Spread Account and certain other rights under
this Agreement.

                  "UCC" means the Uniform Commercial Code as in effect in the
relevant jurisdiction on the date of the Agreement.

         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.

                                       16

<PAGE>

         (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 other amounts to be distributed from time to time to the order
of the Depositor in accordance with the 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

                                       17

<PAGE>

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 Trust Property from the Depositor to the Issuer and the beneficial
interest in and title to the Receivables and the other Trust 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.

         (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. 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
Securities 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
Certificateholder.

                                       18

<PAGE>

                                  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 in respect of the Receivables pursuant to the Purchase Agreement
and this Agreement.

         SECTION 3.2. Repurchase upon Breach of Representations and Warranties.

         (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 will
execute such assignments and other documents reasonably requested by such person
in order to effect such repurchase. 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.

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         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):

                  (i)      the fully executed original of the 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, 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 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

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<PAGE>

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 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 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 Noteholders.

         (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.

         (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.

                                   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, 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

                                       21

<PAGE>

and, to the extent more exacting, the degree of skill and attention that the
Servicer 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 Lockbox 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.

         SECTION 4.2. Collection of Receivable Payments; Modifications of
Receivables; Lockbox 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

                                       22

<PAGE>

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.

                  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, 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)

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<PAGE>

the difference between such average of Monthly Extension Rates and 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 Lockbox
Banks pursuant to a Lockbox Agreement. The Servicer will use its best efforts to
notify or direct any Lockbox 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 Lockbox 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 Lockbox Agreement, or any of the
provisions of this Agreement relating to the Lockbox 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
Lockbox Bank is performing its obligations pursuant to the terms of a Lockbox
Agreement.

                  If the Servicer is terminated, the successor Servicer will
assume all of the rights and obligations of the outgoing Servicer under the
Lockbox 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
Lockbox Agreement to the same extent as if such Lockbox 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 Lockbox Bank under such Lockbox 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 Lockbox Agreement and an accounting of amounts collected and held
by the Lockbox Bank and otherwise use its best efforts to effect the orderly and
efficient transfer of any Lockbox Agreement to the successor Servicer. In the
event that 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) elects to change the identity of the Lockbox Bank, the outgoing
Servicer, at its expense, will cause the Lockbox Bank to deliver, at the
direction of the Insurer (so long as an Insurer Default has not occurred) or the
Majority Noteholders (if an Insurer Default has occurred and is continuing) to
the Indenture Trustee or a successor Lockbox Bank, all documents and records
relating to the Receivables and all amounts held (or thereafter received) by the
Lockbox 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

                                       24

<PAGE>

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 Lockbox 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 all or more than 10% 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 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 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,

                                       25

<PAGE>

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 Noteholders. 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 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

                                       26

<PAGE>

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 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
or a Trigger Event, the Insurer may (so long as no Insurer Default has occurred
and is continuing) instruct the Indenture

                                       27

<PAGE>

Trustee and the Servicer to take or cause to be taken, or, if an Insurer Default
has occurred, 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 to 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 Insurer, 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 Insurer.

         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.

         (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

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<PAGE>

                  (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 Uniform Commercial Code 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 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, 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-

                                       29

<PAGE>

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 Lockbox Bank (and any fees under the
Lockbox 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 10:00 a.m. Eastern
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, 2004, an Officer's
Certificate, dated as of December 31 (or other applicable date) 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

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<PAGE>

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, 2004 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 addressed to the board of directors of
the Servicer, to the Indenture Trustee, the Owner Trustee, the Backup Servicer
and to the Insurer, to the effect that such firm has audited the financial
statements of Triad and issued its report thereon and that such audit (1) was
made in accordance with generally accepted auditing standards, (2) included
tests relating to automotive loans serviced for others in accordance with the
requirements of the Uniform Single Attestation Program for Mortgage Bankers (the
"Program"), to the extent the procedures in such Program are applicable to the
servicing obligations set forth in the Agreement, and (3) except as described in
the report, disclosed no exceptions or errors in the records relating to
automobile and light duty truck loans serviced for others that such firm is
required to report under the Program. Except to the extent otherwise required by
the 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 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.

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<PAGE>

         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 Servicer will cause the Indenture Trustee to
establish and maintain an Eligible Deposit Account (the "Spread Account") with
the Indenture Trustee, bearing a designation clearly indicating that the funds
deposited therein are held in trust for the benefit of the Noteholders and the
Insurer.

                  (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 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 such 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

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<PAGE>

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. Eastern 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 five 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;

                           (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.

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<PAGE>

         (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
extent that such amounts are owed to the Lockbox Bank, the Servicer will cause
such amounts to be returned to the Lockbox 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).

         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)(xii) until
the amount on deposit therein is equal to the Spread Account Requirement.

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<PAGE>

         (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)(x), then 5.7(a)(xiii) through (xv).

         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 purchase or sale of the assets of the
Trust described in Section 10.1 will be deposited in the Collection Account.

         (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;

                  (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;

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<PAGE>

                  (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 Payment;

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

                  (viii)   to the Note Distribution Account, the Class B
         Noteholders' Interest Distributable Amount;

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

                  (x)      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;

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

                  (xii)    to the Spread Account, any amount required to
         increase the amount in the Spread Account to the Spread Account
         Requirement;

                  (xiii)   to the Insurer, if an Insurer Default has occurred or
         is continuing, the amounts described under clause (x) above;

                  (xiv)    to the Note Distribution Account, to make a payment
         of the Class A Noteholders' Accelerated Principal Amount, provided that
         if 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

                  (xv)     to the Note Distribution Account, to make a payment
         of principal to the holders of the Class B Notes, or, if the Class B
         Notes are no longer outstanding, to make a payment of all remaining
         amounts to the Certificateholder.

         (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

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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).

         (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)(viii), accrued and unpaid interest on the Class B Notes.

                  -        From amounts transferred pursuant to Section
         5.7(a)(iv), (v), (vii), (xi) and (xiv), 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.

                  -        From amounts transferred pursuant to section
         5.7(a)(ix) and (xv), to the holders of the Class B Notes, until the
         outstanding principal balance of the Class B 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

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<PAGE>

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, second to the other Classes of Class A Notes pro rata
until they are paid in full, and third, to the Class B Notes.

         (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.

         (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-US
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 preceding
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 or prior to 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) as to the Notes 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;

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<PAGE>

                  (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;

                  (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,
         the Class B Noteholders' Interest Carryover Amount and the Class A
         Noteholders' Principal Carryover Amount;

                  (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/absmbs. 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 amounts to the Indenture Trustee for deposit into the
Collection Account for any of the following purposes: (i) to provide funds in
respect of the payment of fees or expenses of any provider of services to the
Trust with respect to such Distribution Date, or (ii) to include such amount to
the extent that without such amount a draw would be required to be made on the
Note Policy.

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<PAGE>

                                   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 Eastern 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 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 A.M., 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. 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,
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

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<PAGE>

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 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
entitled to make a claim for an Insured Payment 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 a court with competent
jurisdiction to the effect that a Holder is required to return any 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 be restored by the Indenture Trustee or such Holder (the "Order"),
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. Any Preference Amount due under the Note Policy 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 Amount 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.

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<PAGE>

         Notwithstanding any provision of this Agreement, any payments made
under the Note Policy will be subject to the terms of the Note 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 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, 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,

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<PAGE>

or the validity or enforceability of the Receivables and the Other Conveyed
Property or to perform the Depositor's obligations hereunder and 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 this Agreement and the Basic Documents and to carry out
its terms and their terms, respectively; 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 this Agreement and 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 this Agreement and the Basic Documents to which it is a
party, when duly executed and delivered, will constitute legal, valid and
binding 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 this Agreement and the Basic Documents and the fulfillment of
the terms of this Agreement and 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, lapse of time or both) a default under the limited liability
company agreement or operating agreement of the Depositor, or any 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 this
Agreement, 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 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 this Agreement or 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, this Agreement or 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

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<PAGE>

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 this
Agreement, 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 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. The
Depositor intends to retain the Certificates. The Depositor will notify the
Owner Trustee, the Indenture Trustee and the Insurer with respect to any other
transfer of any Certificate.

                                  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

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<PAGE>

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.

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

                  (ii)     Organization and Good Standing. The Servicer has been
         duly organized and is validly existing and in good standing under the
         laws of California, with 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;

                  (iii)    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;

                  (iv)     Power and Authority. The Servicer has the power and
         authority to execute and deliver this Agreement and the Basic Documents
         and to carry out its terms and their terms, respectively, and the
         execution, delivery and performance of this Agreement and the Basic
         Documents have been duly authorized by the Servicer by all necessary
         corporate action;

                  (v)      Binding Obligation. This Agreement and the Basic
         Documents 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;

                  (vi)     No Violation. The consummation of the transactions
         contemplated by this Agreement and the Basic Documents, and the
         fulfillment of the terms of this Agreement and 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 this Agreement,
         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;

                  (vii)    No Proceedings. There are no proceedings or
         investigations pending or, to the Servicer's 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 this Agreement or any of the

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<PAGE>

         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 Servicer of its obligations under, or the validity
         or enforceability of, this Agreement or 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;

                  (viii)   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.

         (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

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<PAGE>

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 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,

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<PAGE>

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,
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) 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 acting in the possible dual capacity of Backup Servicer or successor
Servicer and in the capacity as Indenture Trustee. JPMorgan Chase Bank 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 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.

         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.

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<PAGE>

         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 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 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

                                       49

<PAGE>

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;

         (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;

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

         (i)      Failure of the Servicer to repurchase Receivables in the event
the Monthly Extension Rate exceeds the 4% limitation set forth in Section
4.2(c)(iii) hereof.

         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

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<PAGE>

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 Lockbox 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 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.

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<PAGE>

         (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. The Backup
Servicer will not be liable for any Servicing Fee, additional compensation or
other amounts to be paid to such successor 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 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 then due and payable on the Notes. To exercise such option, the
Servicer will deposit pursuant to Section 5.6 in the Collection Account an
amount equal to the aggregate Purchase Amount for the Receivables (including
Liquidated Receivables), plus the appraised value of any other property held by
the Trust, 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.

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<PAGE>

         (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 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, 5.1, 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 this Agreement or any of 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 this Agreement or
         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 this Agreement or 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 this Agreement or 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 this Agreement. Any such notice will be in
         writing and specify the amount of

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<PAGE>

         any withholding tax required to be withheld by the Owner Trustee or the
         Indenture Trustee pursuant to such provision.

                  (iii)    Notwithstanding anything in this Agreement or the
         Basic Documents to the contrary, the Servicer will be responsible for
         performance of the duties of the Issuer set forth in Section 5.1 of the
         Trust Agreement with respect to, among other things, accounting and
         reports to Owners (as defined in the Trust Agreement); provided,
         however, that once prepared by the Servicer the Owner Trustee will
         retain responsibility for the distribution of the Schedule K-1s upon
         request of the Certificateholder in order to enable the
         Certificateholder 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 this Agreement or 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
                  this Agreement or 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

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<PAGE>

                           (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 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), 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 with 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,

                                       55

<PAGE>

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.

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

         (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)(1) 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.

                                       56

<PAGE>

         (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.

         (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:

                           (1)      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;
         and

                           (2)      within 90 days after the beginning of each
         calendar year beginning with the first calendar year beginning more
         than three months after the Cutoff Date, an Opinion of Counsel, dated
         as of a date during such 90-day period, stating that, in the opinion of
         such counsel, 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 clause (1) or (2) above
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.

                                       57

<PAGE>

         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
                                           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
                                           4 New York Plaza, 6th Floor
                                           New York, New York 10004-2477
                                           Attention: Institutional Trust
                                           Services/Triad 2003-B

        If to the Insurer:                 MBIA Insurance Corporation
                                           113 King Street
                                           Armonk, New York 10504
                                           Attention: Insured Portfolio
                                           Management-Structured
                                                        Finance (IPM-SF)
                                                        Triad Automobile
                                                        Receivables
                                                        Trust 2003-B
                                           Facsimile:    (914) 765-3810
                                           Confirmation: (914) 765-3781

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 Ram Wertheim and will be marked to indicate
"URGENT MATERIAL ENCLOSED."

                                       58

<PAGE>

       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

       If to Fitch:                       Fitch Ratings
                                          One State Street Plaza
                                          New York, New York 10004.

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 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 Holders of Notes
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

                                       59

<PAGE>

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.

         SECTION 12.11. Nonpetition Covenants.

         (a)      Notwithstanding any termination of this Agreement, the
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
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

                                       60
<PAGE>

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, not in
its individual capacity but solely as Indenture Trustee and Backup Servicer and
in no event will JPMorgan Chase Bank 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, 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 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

                                       61

<PAGE>

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]

                                       62

<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 2003-B

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

                         By: /s/ JANEL R. HAVRILLA
                             ---------------------------------------------
                             Name: Janel R. Havrilla
                             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: Chief Financial Officer

          [Signature Page to Sale and Servicing Agreement (p. 1 of 2)]

<PAGE>

                               JPMORGAN CHASE BANK,
                               not in its individual capacity but solely as
                               Backup Servicer

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

Acknowledged and accepted by

JPMORGAN CHASE BANK,
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 (p. 2 of 2)]

<PAGE>

                                                                      SCHEDULE A

                             SCHEDULE OF RECEIVABLES

                      [On File with Dewey Ballantine LLP]

                                    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

                      [On File with Dewey Ballantine LLP]

                                     SCH-C-1

<PAGE>

                                                                      SCHEDULE D

                          CUSTODIAN THIRD PARTY VENDORS

               Arcus Data Security Inc., an Iron Mountain Company

               FDI Computer Consulting, Inc.

                                     SCH-D-1

<PAGE>

                                                                       EXHIBIT A

                             SERVICER'S CERTIFICATE

                      [On File with Dewey Ballantine LLP]

                                       B-1

<PAGE>

                                                                       EXHIBIT B

                     FORM OF NOTE GUARANTY INSURANCE POLICY

                               [See Exhibit 4.4]

                                       C-1

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