Document:

<PAGE>

                                                                     Exhibit 4.1

                         POOLING AND SERVICING AGREEMENT

                                      AMONG

                         NAVISTAR FINANCIAL CORPORATION

                                    SERVICER

                NAVISTAR FINANCIAL RETAIL RECEIVABLES CORPORATION

                                     SELLER

                                       AND

                 CHASE MANHATTAN BANK USA, NATIONAL ASSOCIATION

           NOT IN ITS INDIVIDUAL CAPACITY BUT SOLELY AS OWNER TRUSTEE

                          DATED AS OF NOVEMBER 1, 2001

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                      Page
                                                                                                      ----
<S>                                                                                                   <C>
ARTICLE I DEFINITIONS.............................................................................      1
     SECTION 1.01.     Definitions ...............................................................      1
                       -----------

ARTICLE II CONVEYANCE OF RECEIVABLES; ORIGINAL ISSUANCE OF CERTIFICATES ..........................      2
     SECTION 2.01.     Conveyance of Initial Receivables..........................................      2
                       ---------------------------------
     SECTION 2.02.     Conveyance of Subsequent Receivables.......................................      3
                       ------------------------------------
     SECTION 2.03.     Custody of Receivable Files ...............................................      6
                       ---------------------------
     SECTION 2.04.     Acceptance by Owner Trustee; Limitation on Transfer of International
                       --------------------------------------------------------------------
          Purchase Obligations ...................................................................      7
          --------------------
     SECTION 2.05.     Representations and Warranties as to the Receivables.......................      7
                       ----------------------------------------------------
     SECTION 2.06.     Repurchase of Receivables Upon Breach of Warranty..........................      7
                       -------------------------------------------------

ARTICLE III ADMINISTRATION AND SERVICING OF RECEIVABLES...........................................      8
     SECTION 3.01.     Duties of the Servicer.....................................................      8
                       ----------------------
     SECTION 3.02.     Collection of Receivables Payments.........................................      9
                       ----------------------------------
     SECTION 3.03.     [Reserved.]................................................................      9
                       -----------
     SECTION 3.04.     Realization Upon Liquidating Receivables...................................      9
                       ----------------------------------------
     SECTION 3.05.     Maintenance of Insurance Policies..........................................     10
                       ---------------------------------
     SECTION 3.06.     Maintenance of Security Interests in Vehicles..............................     10
                       ---------------------------------------------
     SECTION 3.07.     Covenants of the Servicer..................................................     10
                       -------------------------
     SECTION 3.08.     Purchase of Receivables Upon Breach of Covenant............................     11
                       -----------------------------------------------
     SECTION 3.09.     Total and Supplemental Servicing Fees; Payment of Certain Expenses
                       ------------------------------------------------------------------
          by Servicer ............................................................................     11
          ----------
     SECTION 3.10.     Servicer's Certificate.....................................................     11
                       ----------------------
     SECTION 3.11.     Application of Collections.................................................     11
                       --------------------------

ARTICLE IV SERVICER'S COVENANTS; DISTRIBUTIONS; RESERVE ACCOUNT;STATEMENTS TO
     NOTEHOLDERS AND CERTIFICATEHOLDERS...........................................................     12
     SECTION 4.01.     Annual Statement as to Compliance: Notice of Servicer Default .............     12
                       -------------------------------------------------------------
     SECTION 4.02.     Annual Independent Accountants' Report ....................................     13
                       --------------------------------------
     SECTION 4.03.     Access to Certain Documentation and Information Regarding Receivables......     13
                       ---------------------------------------------------------------------
     SECTION 4.04.     Amendments to Schedule of Receivables .....................................     13
                       -------------------------------------
     SECTION 4.05.     Assignment of Administrative Receivables and Warranty Receivables .........     14
                       -----------------------------------------------------------------
     SECTION 4.06.     Distributions..............................................................     14
                       -------------
     SECTION 4.07.     Reserve Account............................................................     16
                       ---------------
     SECTION 4.08.     Net Deposits...............................................................     17
                       ------------
</TABLE>

                                       i

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<TABLE>
<S>                                                                                                      <C>
     SECTION 4.09.     Statements to Financial Parties..............................................     17
                       -------------------------------
     SECTION 4.10.     Information Provided to Rating Agencies......................................     19
                       ---------------------------------------

ARTICLE V ACCOUNTS; COLLECTIONS, DEPOSITS AND INVESTMENTS; ADVANCES.................................     19
     SECTION 5.01.     Establishment of Accounts....................................................     19
                       -------------------------
     SECTION 5.02.     Pre-Funding Account..........................................................     23
                       -------------------
     SECTION 5.03.     Negative Carry Account.......................................................     23
                       ----------------------
     SECTION 5.04.     Collections..................................................................     24
                       -----------
     SECTION 5.05.     Investment Earnings and Supplemental Servicing Fees..........................     24
                       ---------------------------------------------------
     SECTION 5.06.     Monthly Advances.............................................................     25
                       ----------------
     SECTION 5.07.     Additional Deposits..........................................................     25
                       -------------------

ARTICLE VI THE SELLER; REPRESENTATIONS AND WARRANTIESOF THE SELLER AND THE SERVICER.................     25
     SECTION 6.01.     Representations and Warranties of the Seller and the Servicer ...............     25
                       -------------------------------------------------------------
     SECTION 6.02.     Liability of Seller..........................................................     28
                       -------------------
     SECTION 6.03.     Merger or Consolidation of, or Assumption of  the Obligations of,
                       ----------------------------------------------------------------
          Seller; Amendment of Certificate of Incorporation.........................................     28
          -------------------------------------------------
     SECTION 6.04.     Limitation on Liability of Seller and Others.................................     28
                       --------------------------------------------
     SECTION 6.05.     Seller May Own Securities....................................................     29
                       -------------------------

ARTICLE VII LIABILITIES OF SERVICER AND OTHERS......................................................     29
     SECTION 7.01.     Liability of Servicer; Indemnities ..........................................     29
                       ----------------------------------
     SECTION 7.02.     Merger or Consolidation of, or Assumption of the Obligations of, the
                       --------------------------------------------------------------------
           Servicer ................................................................................     30
           --------
     SECTION 7.03.     Limitation on Liability of Servicer and Others...............................     31
                       ----------------------------------------------
     SECTION 7.04.     Delegation of Duties.........................................................     31
                       --------------------
     SECTION 7.05.     Servicer Not to Resign ......................................................     32
                       ----------------------

ARTICLE VIII DEFAULT................................................................................     32
     SECTION 8.01.     Servicer Defaults............................................................     32
                       -----------------
     SECTION 8.02.     Consequences of a Servicer Default...........................................     33
                       ----------------------------------
     SECTION 8.03.     Indenture Trustee to Act; Appointment of Successor...........................     33
                       --------------------------------------------------
     SECTION 8.04.     Notification to Financial Parties............................................     34
                       ---------------------------------
     SECTION 8.05.     Waiver of Past Defaults......................................................     34
                       -----------------------
     SECTION 8.06.     Repayment of Advances........................................................     34
                       ---------------------

ARTICLE IX TERMINATION .............................................................................     35
     SECTION 9.01.     Optional Purchase of All Receivables ........................................     35
                       ------------------------------------
     SECTION 9.02.     Sale of Assets; Termination..................................................     35
                       ---------------------------

ARTICLE X MISCELLANEOUS PROVISIONS..................................................................     37
     SECTION 10.01.    Amendment....................................................................     37
                       ---------
</TABLE>

                                       ii

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<TABLE>
     <S>                                                                       <C>
     SECTION 10.02.    Protection of Title to Owner Trust Estate............    39
                       -----------------------------------------
     SECTION 10.03.    Notices..............................................    40
                       -------
     SECTION 10.04.    Governing Law........................................    41
                       -------------
     SECTION 10.05.    Severability of Provisions...........................    41
                       --------------------------
     SECTION 10.06.    Assignment...........................................    41
                       ----------
     SECTION 10.07.    Third-Party Beneficiaries............................    41
                       -------------------------
     SECTION 10.08.    Separate Counterparts................................    41
                       ---------------------
     SECTION 10.09.    Headings and Cross-References........................    41
                       -----------------------------
     SECTION 10.10.    Assignment to Indenture Trustee......................    41
                       -------------------------------
     SECTION 10.11.    No Petition Covenants................................    42
                       ---------------------
     SECTION 10.12.    Limitation of Liability of the Trustees..............    42
                       ---------------------------------------
     SECTION 10.13.    Business Day Certificate.............................    42
                       ------------------------
</TABLE>

                                      iii

<PAGE>

EXHIBIT A      Locations of Schedule of Receivables

EXHIBIT B      Form of Initial PSA Assignment

EXHIBIT C      Form of Subsequent Transfer PSA Assignment

APPENDIX A     Defined Terms and Rules of Construction

APPENDIX B     Notice Addresses and Procedures

                                       iv

<PAGE>

     THIS POOLING AND SERVICING AGREEMENT is made as of November 1, 2001 by and
among Navistar Financial Corporation, a Delaware corporation ("NFC" and, in its
capacity as Servicer hereunder, the "Servicer"), Navistar Financial Retail
Receivables Corporation, a Delaware corporation ("NFRRC" and, in its capacity as
the Seller hereunder, the "Seller"), and Chase Manhattan Bank USA, National
Association, a national banking association, not in its individual capacity, but
solely as Owner Trustee under the Trust Agreement (the "Owner Trustee").

     WHEREAS, NFC has sold the Initial Receivables, and has agreed to sell
Subsequent Receivables, to the Seller pursuant to the Purchase Agreement.

     WHEREAS, the Seller desires to sell the Initial Receivables and Subsequent
Receivables (collectively, the "Receivables"), to the Owner Trustee in exchange
for the Securities and the payment of funds withdrawn from the Pre-Funding
Account pursuant to the terms of this Agreement, and the Servicer desires to
perform the servicing obligations set forth herein for and in consideration of
the fees and other benefits set forth in this Agreement.

     WHEREAS, the Seller and the Owner Trustee wish to set forth the terms
pursuant to which the Receivables are to be sold by the Seller to the Owner
Trustee on behalf of the Trust and serviced by the Servicer.

     NOW, THEREFORE, in consideration of the foregoing, the other good and
valuable consideration and the mutual terms and covenants contained herein, the
parties hereto agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

     SECTION 1.1. Definitions. Certain capitalized terms used in the above
                  -----------
recitals and in this Agreement are defined in and shall have the respective
meanings assigned them in Part I of Appendix A to this Agreement. All references
                                    ----------
herein to "the Agreement" or "this Agreement" are to this Pooling and Servicing
Agreement as it may be amended, supplemented (whether by Subsequent Transfer PSA
Assignment or otherwise) or modified from time to time, the exhibits hereto and
the capitalized terms used herein which are defined in such Appendix A, and all
                                                            ----------
references herein to Articles, Sections and subsections are to Articles,
Sections or subsections of this Agreement unless otherwise specified. The rules
of construction set forth in Part II of such Appendix A shall be applicable to
                                             ----------
this Agreement.

                                   ARTICLE II
          CONVEYANCE OF RECEIVABLES; ORIGINAL ISSUANCE OF CERTIFICATES

                                       1

<PAGE>

     SECTION 2.1. Conveyance of Initial Receivables. In consideration of the
                   ---------------------------------
Owner Trustee's delivery of the Securities to, or upon the order of, the Seller,
the Seller does hereby enter into this Agreement and agree to fulfill all of its
obligations hereunder and to sell, transfer, assign, set over and otherwise
convey to Chase Manhattan Bank USA, National Association, not in its individual
capacity, but solely as Owner Trustee, under the Trust Agreement, without
                                                                  -------
recourse, pursuant to an assignment in the form attached hereto as Exhibit B
--------                                                           ---------
(the "Initial PSA Assignment"), all right, title and interest of the Seller in,
to and under:

     (a) the Initial Receivables and all monies paid thereon (including
Liquidation Proceeds) and due thereunder on and after the Initial Cutoff Date;

     (b) the security interests in the Financed Vehicles granted by Obligors
pursuant to the Initial Receivables and, to the extent permitted by law, any
accessions thereto which are financed by NFC;

     (c) the benefits of any lease assignments with respect to the related
Financed Vehicles;

     (d) any proceeds from any Insurance Policies with respect to the Initial
Receivables;

     (e) any proceeds from Dealer Liability with respect to the Initial
Receivables, proceeds from any International Purchase Obligations with respect
to the Initial Receivables (subject to the limitations set forth in Section
2.04) and proceeds from any Guaranties of Initial Receivables;

     (f) the Purchase Agreement, the Initial PA Assignment pursuant to Section
2.01 of the Purchase Agreement with respect to the Initial Receivables, and the
Custodian Agreement, including the right of the Seller to cause NFC to perform
its obligations thereunder (including the obligation to repurchase Initial
Receivables under certain circumstances); and

     (g) any proceeds of the property described in clauses (a), (b), (c) and (f)
above.

It is the intention of the Seller that the transfer and assignment contemplated
by this Section 2.01 shall constitute a sale of the Initial Receivables from the
Seller to the Owner Trustee, on behalf of the Trust, and the beneficial interest
in and title to the assets conveyed pursuant to this Section 2.01 shall not be
part of the Seller's estate in the event of the filing of a bankruptcy petition
by or against the Seller under any bankruptcy law. Within two Business Days
after the Closing Date, the Seller shall cause to be deposited into the
Collection Account all collections (from whatever source) on or with respect to
the assets conveyed pursuant to this Section 2.01 received by the Seller
pursuant to Section 5.07 of the Purchase Agreement. The Seller and the Servicer
intend to treat such transfer and assignment as a sale for accounting and tax
purposes. Notwithstanding the foregoing, in the event a court of competent
jurisdiction determines that such transfer and assignment did not constitute
such a sale or that such beneficial interest is a part of the Seller's estate,
then (i) the Seller shall be deemed to have granted to the Owner Trustee, on
behalf of the Trust, a first priority perfected security interest in all of the
Seller's right title and interest in, to and under the assets conveyed pursuant
to this Section 2.01, and the Seller hereby grants such security interest and
(ii) the

                                       2

<PAGE>

assets conveyed pursuant to this Section 2.01 shall be deemed to include all
rights, powers and options (but none of the obligations, if any) of the Seller
under any agreement or instrument included in the assets conveyed pursuant to
this Section 2.01, including the immediate and continuing right to claim for,
collect, receive and give receipt for principal and interest payments in respect
of the Initial Receivables included in the assets conveyed pursuant to this
Section 2.01 and all other monies payable under the Initial Receivables conveyed
pursuant to this Section 2.01, to give and receive notices and other
communications, to make waivers or other agreements, to exercise all rights,
powers and options, to bring Proceedings in the name of the Seller or otherwise
and generally to do and receive anything that the Seller is or may be entitled
to do or receive under or with respect to the assets conveyed pursuant to this
Section 2.01. For purposes of such grant, this Agreement shall constitute a
security agreement under the UCC.

     SECTION 2.2. Conveyance of Subsequent Receivables. (a) Subject to
                   ------------------------------------
satisfaction of the conditions set forth in Section 2.02(b) below, in
consideration of the Owner Trustee's delivery on the related Subsequent Transfer
Date to or upon the order of the Seller of the amount described in Section
5.02(a) to be delivered to the Seller, the Seller does hereby agree to sell,
transfer, assign, set over and otherwise convey to the Owner Trustee, without
                                                                      -------
recourse, pursuant to an assignment in substantially the form of Exhibit C (a
--------                                                         ---------
"Subsequent Transfer PSA Assignment"), all right, title and interest of the
Seller in, to and under:

          (i)   the Subsequent Receivables described in such Subsequent Transfer
     PSA Assignment and identified on the Schedule of Receivables and all monies
     paid thereon (including Liquidation Proceeds) and due thereunder on and
     after the applicable Subsequent Cutoff Date;

          (ii)  the security interests in the Financed Vehicles granted by
     Obligors pursuant to such Subsequent Receivables and, to the extent
     permitted by law, any accessions thereto which are financed by NFC;

          (iii) the benefits of any lease assignments with respect to the
     related Financed Vehicles;

          (iv)  any proceeds from any Insurance Policies with respect to such
     Subsequent Receivables;

          (v)   any proceeds from Dealer Liability with respect to such
     Subsequent Receivables, proceeds from any International Purchase
     Obligations with respect to such Subsequent Receivables (subject to the
     limitations set forth in Section 2.04) and proceeds from any Guaranties of
     Subsequent Receivables;

          (vi)  the Purchase Agreement, the Subsequent Transfer PA Assignments
     pursuant to Section 2.01 of the Purchase Agreement with respect to such
     Subsequent Receivables and the Custodian Agreement, including the right of
     the Seller to cause NFC to perform its

                                       3

<PAGE>

     obligations thereunder (including the obligation to repurchase Subsequent
     Receivables under certain circumstances); and

          (vii)  any proceeds of the property described in clauses (i),
     (ii), (iii) and (vi) above.

It is the intention of the Seller that each transfer and assignment contemplated
by this Section 2.02 shall constitute a sale of the related Subsequent
Receivables from the Seller to the Owner Trustee and the beneficial interest in
and title to the assets conveyed pursuant to the Subsequent Transfer PSA
Assignment shall not be part of the Seller's estate in the event of the filing
of a bankruptcy petition by or against the Seller under any bankruptcy law.
Within two Business Days after each Subsequent Transfer Date, the Seller shall
cause to be deposited into the Collection Account all collections (from whatever
source) on or with respect to the assets conveyed pursuant to the related
Subsequent Transfer PSA Assignment received by the Seller pursuant to Section
5.07 of the Purchase Agreement. The Seller and the Servicer intend to treat each
such transfer and assignment as a sale for accounting and tax purposes.
Notwithstanding the foregoing, in the event a court of competent jurisdiction
determines that any such transfer and assignment did not constitute such a sale
or that such beneficial interest is a part of the Seller's estate, then (i) the
Seller shall be deemed to have granted to the Owner Trustee a first priority
perfected security interest in all of the Seller's right, title and interest in,
to and under the assets conveyed pursuant to the related Subsequent Transfer PSA
Assignment, and the Seller hereby grants such security interest and (ii) the
assets conveyed pursuant to such Subsequent Transfer PSA Assignment shall be
deemed to include all rights, powers and options (but none of the obligations,
if any) of the Seller under any agreement or instrument included in the assets
conveyed pursuant to such Subsequent Transfer PSA Assignment, including the
immediate and continuing right to claim for, collect, receive and give receipt
for principal and interest payments in respect of the Subsequent Receivables
included in the assets conveyed pursuant to such Subsequent Transfer PSA
Assignment and all other monies payable under the Subsequent Receivables
conveyed pursuant to such Subsequent Transfer PSA Assignment, to give and
receive notices and other communications, to make waivers or other agreements,
to exercise all rights, powers and options, to bring Proceedings in the name of
the Seller or otherwise and generally to do and receive anything that the Seller
is or may be entitled to do or receive under or with respect to the assets
conveyed pursuant to such Subsequent Transfer PSA Assignment. For purposes of
such grant, each such Subsequent Transfer PSA Assignment, together with this
Agreement, shall constitute a security agreement under the UCC.

          (b)    The Seller shall transfer to the Owner Trustee Subsequent
Receivables and the other property and rights related thereto described in
Section 2.02(a) above only upon the satisfaction of each of the following
conditions precedent on or prior to the related Subsequent Transfer Date:

          (i)    the Funding Period shall not have terminated;

          (ii)   each of the representations and warranties made by the Seller
     pursuant to Section 2.05 with respect to such Subsequent Receivables shall
     be true and correct as of the related Subsequent Transfer Date with the
     same effect as if then made, and the Seller shall

                                       4

<PAGE>

          have performed all obligations to be performed by it hereunder on or
          prior to such Subsequent Transfer Date;

               (iii)  the Seller shall have delivered to the Owner Trustee, the
          Indenture Trustee and the Rating Agencies a duly executed Subsequent
          Transfer PSA Assignment, including a schedule of such Subsequent
          Receivables (which schedule shall be deemed to supplement the Schedule
                                                                        --------
          of Receivables in effect at such time);
          --------------
               (iv)   the applicable Reserve Account Subsequent Transfer Deposit
          for such Subsequent Transfer Date shall have been deposited in the
          Reserve Account pursuant to Section 5.02(a)(ii);

               (v)    the Seller shall, at its own expense, on or prior to each
          Subsequent Transfer Date indicate in its computer files that the
          Subsequent Receivables conveyed on such date have been sold to the
          Owner Trustee pursuant to this Agreement and the related Subsequent
          Transfer PSA Assignment;

               (vi)   the Seller shall have taken any action required to
          maintain the first priority perfected ownership interest of the Owner
          Trustee in the Owner Trust Estate and the first priority perfected
          security interest of the Indenture Trustee in the Collateral;

               (vii)  The Receivables in the Trust (after giving effect to the
          conveyance of the Subsequent Receivables to the Trust on such
          Subsequent Transfer Date) shall meet the following criteria: (A) the
          weighted average Annual Percentage Rate of the Receivables in the
          Trust shall not be less than 8.12%, (B) the weighted average remaining
          maturity of the Receivables in the Trust shall not be greater than 55
          months and (C) the aggregate Receivables Balance of all Receivables
          owing from a single Obligor shall not be more than 2.00% of the
          aggregate Receivables Balance of all Receivables in the Trust;

               (viii) the Seller shall have delivered to the Indenture Trustee
          and the Owner Trustee an Officers' Certificate confirming the
          satisfaction of the conditions specified in this Section 2.02(b);

               (ix)   the Seller shall have delivered to the Rating Agencies an
          Opinion of Counsel with respect to the transfer of such Subsequent
          Receivables substantially in the form of the Opinion of Counsel
          delivered to the Rating Agencies on the Closing Date;

               (x)    The Seller shall have delivered to the Owner Trustee and
          the Indenture Trustee written confirmation from an independent public
          accounting firm that, as of the applicable Subsequent Cutoff Date,
          such Subsequent Receivables satisfied the eligibility criteria
          described in Sections 3.01(a)(v), (r), (s), (t), (w) and (x) of the
          Purchase Agreement; and

                                       5

<PAGE>

                (xi)  S&P shall have notified the Seller in writing that,
         following the addition of all such Subsequent Receivables to the Trust,
         the Notes will be rated by S&P in the same rating category as they were
         rated by S&P prior to such addition.

                (c)   The Seller covenants to transfer to the Owner Trustee
pursuant to Section 2.02(a) before the termination of the Funding Period,
Subsequent Receivables with an aggregate Starting Receivable Balance equal to
$207,670,906.02. If on the Distribution Date on which the Funding Period ends
(or, if the Funding Period does not end on a Distribution Date, the first
Distribution Date following the end of the Funding Period) the Pre-Funded Amount
is equal to or greater than $100,000, the Seller shall be obligated to pay to
the Owner Trustee on the Transfer Date immediately preceding such Distribution
Date an amount equal to the Noteholders' Prepayment Premium with respect to each
class of Notes or such lesser amount that the Seller actually receives from NFC
under Section 2.04 of the Purchase Agreement in respect of NFC's breach thereof;
provided, however, that the foregoing shall be the sole remedy of the Owner
--------  -------
Trustee, the Indenture Trustee and the Noteholders with respect to a failure of
the Seller to comply with this covenant.

         SECTION 2.3. Custody of Receivable Files. In connection with the sale,
                      ---------------------------
transfer and assignment of Receivables to the Seller from NFC pursuant to the
Purchase Agreement, the Seller, simultaneously with the execution and delivery
of this Agreement, shall enter into the Custodian Agreement with the Custodian,
pursuant to which the Seller shall revocably appoint the Custodian, and the
Custodian shall accept such appointment, to act as the agent of the Seller as
Custodian of the following documents or instruments which shall be
constructively delivered to the Owner Trustee, as of the Closing Date with
respect to each Initial Receivable, and as of the related Subsequent Transfer
Date with respect to each Subsequent Receivable:

         (a)    the fully executed original of the Retail Note for such
Receivable;

         (b)    documents evidencing or related to any Insurance Policy;

         (c)    the original credit application of each Obligor, fully executed
by each such Obligor on NFC's customary form, or on a form approved by NFC, for
such application;

         (d)    where permitted by law, the original certificate of title (when
received) and otherwise such documents, if any, that NFC keeps on file in
accordance with its customary procedures indicating that the Financed Vehicle is
owned by the Obligor and subject to the interest of NFC as first lienholder or
secured party; and

         (e)    any and all other documents that NFC keeps on file in accordance
with its customary procedures relating to the individual Receivable, Obligor or
Financed Vehicle.

Pursuant to Sections 2.01(f) and 2.02(a)(vi), the rights of the Seller under the
Custodian Agreement are being assigned to the Owner Trustee.

                                       6

<PAGE>

     SECTION 2.4. Acceptance by Owner Trustee; Limitation on Transfer of
                  ------------------------------------------------------
International Purchase Obligations. The Owner Trustee does hereby accept all
----------------------------------
consideration conveyed by the Seller pursuant to Sections 2.01 and 2.02, and
declares that the Owner Trustee shall hold such consideration upon the trust set
forth in the Trust Agreement for the benefit of Certificateholders, subject to
the terms and conditions of the Trust Agreement, the Indenture and this
Agreement; provided, however, that the Owner Trustee acknowledges and agrees
           --------  -------
that (a) the rights pursuant to the International Purchase Obligations are
personal to NFC, and only the proceeds of such rights are being assigned to the
Owner Trustee pursuant to the terms hereof, (b) the Owner Trustee is not or is
not intended to be a third-party beneficiary of such rights, and (c) accordingly
such rights are not exercisable by, enforceable by or for the benefit of, or
preserved for the benefit of, the Owner Trustee. The Owner Trustee hereby agrees
and accepts the appointment and authorization of NFC as Servicer under Section
3.01. The parties agree that this Agreement (including any Subsequent Transfer
PSA Assignments), the Indenture and the Trust Agreement constitute the Further
Transfer and Servicing Agreements for purposes of the Purchase Agreement.

     SECTION 2.5. Representations and Warranties as to the Receivables.
                  ----------------------------------------------------
Pursuant to Sections 2.01(f) and 2.02(a)(vi), the Seller assigns to the Owner
Trustee all of its right, title and interest in, to and under the Purchase
Agreement. Such assigned right, title and interest includes the representations
and warranties of NFC made to the Seller pursuant to Section 3.01 of the
Purchase Agreement. The Seller hereby represents and warrants to the Owner
Trustee that the Seller has taken no action which would cause such
representations and warranties to be false in any material respect as of the
Closing Date, in the case of the Initial Receivables, and as of the related
Subsequent Transfer Date, in the case of Subsequent Receivables. The Seller
further acknowledges that the Owner Trustee is relying on the representations
and warranties of the Seller under this Agreement and of NFC under the Purchase
Agreement in accepting the Receivables in trust and executing and delivering the
Securities. The foregoing representation and warranty speaks as of the Closing
Date, in the case of the Initial Receivables, and as of the related Subsequent
Transfer Date, in the case of Subsequent Receivables, but shall survive the
sale, transfer and assignment of such Receivables to the Owner Trustee and the
pledge thereof to the Indenture Trustee pursuant to the Indenture.

     SECTION 2.6. Repurchase of Receivables Upon Breach of Warranty. Upon
                  -------------------------------------------------
discovery by the Seller, the Servicer or either Trustee of a breach of any of
the representations and warranties in Section 3.01 of the Purchase Agreement
(and, with respect to subsection 3.01(j) of the Purchase Agreement, irrespective
of any limitation regarding knowledge of NFC) or in Section 2.05 or Section 6.01
of this Agreement that materially and adversely affects the interests of the
Financial Parties in any Receivable, the party discovering such breach shall
give prompt written notice thereof to the others. As of the second Accounting
Date following its discovery or its receipt of notice of breach (or, at the
Seller's election, the first Accounting Date following such discovery), unless
such breach shall have been cured in all material respects, in the event of a
breach of the representations and warranties made by the Seller in Section 2.05
or Section 6.01, the Seller shall repurchase such Receivable from the Owner
Trustee on the related Distribution Date. The Owner Trustee shall have no
affirmative duty to conduct any investigation as to the occurrence of any event
requiring the repurchase of any Receivable pursuant to this Section 2.06.

                                       7

<PAGE>

     The repurchase price to be paid by any Warranty Purchaser shall be an
amount equal to the Warranty Payment. It is understood and agreed that the
obligation of the Warranty Purchaser to repurchase any Receivable as to which a
breach has occurred and is continuing shall, if such repurchase obligations are
fulfilled, constitute the sole remedy against the Seller, the Servicer or NFC
for such breach available to any Interested Party. The Servicer acknowledges its
obligations to repurchase Administrative Receivables from the Owner Trustee
pursuant to Section 3.08 hereof and to repurchase Warranty Receivables pursuant
to Section 5.04 of the Purchase Agreement.

                                   ARTICLE III
                   ADMINISTRATION AND SERVICING OF RECEIVABLES

     SECTION 3.1. Duties of the Servicer. The Servicer is hereby appointed and
                  ----------------------
authorized to act as agent for the Owner of the Receivables and in such capacity
shall manage, service, administer and make collections on the Receivables with
reasonable care, using that degree of skill and attention that the Servicer
exercises with respect to comparable medium and heavy duty truck, bus and
trailer receivables that it services for itself or others. The Servicer hereby
accepts such appointment and authorization and agrees to perform the duties of
Servicer with respect to the Receivables set forth herein. The Servicer's duties
shall include collection and posting of all payments, responding to inquiries of
Obligors on the Receivables, investigating delinquencies, sending payment
coupons to Obligors, reporting tax information to Obligors, policing the
collateral, accounting for collections and furnishing monthly and annual
statements to the Owner of any Receivables with respect to distributions,
generating federal income tax information and performing the other duties
specified herein. Subject to the provisions of Section 3.02, the Servicer shall
follow its customary standards, policies and procedures and shall 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 Owner of the Receivables, pursuant to this
Section 3.01, to execute and deliver, on behalf of all Interested Parties, or
any of them, 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 the Financed Vehicles. The Servicer is hereby
authorized to commence in the name of the Owner of such Receivable or, to the
extent necessary, in its own name, a legal proceeding to enforce a Liquidating
Receivable as contemplated by Section 3.04, to enforce all obligations of NFC
and NFRRC, in its capacity as the Seller or otherwise, under each of the
Purchase Agreement and the Further Transfer and Servicing Agreements or to
commence or participate in a legal proceeding (including a bankruptcy
proceeding) relating to or involving a Receivable or a Liquidating Receivable.
If the Servicer commences or participates in such a legal proceeding in its own
name, the Owner of such Receivable shall thereupon be deemed to have
automatically assigned such Receivable to the Servicer for purposes of
commencing or participating in any such proceeding as a party or claimant, the
Servicer is hereby authorized and empowered by the Owner of a Receivable 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. Any Owner of Receivables, upon the written
request of the Servicer, shall furnish

                                       8

<PAGE>

the Servicer with any powers of attorney and other documents 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 and the other Further Transfer and Servicing Agreements. Except to the
extent required by the preceding two sentences, the authority and rights granted
to the Servicer in this Section 3.01 shall be nonexclusive and shall not be
construed to be in derogation of the retention by the Owner of a Receivable of
equivalent authority and rights.

     SECTION 3.2. Collection of Receivables Payments. The Servicer shall make
                  ----------------------------------
reasonable efforts to collect all payments called for under the terms and
provisions of the Receivables as and when the same shall become due, and shall
follow such collection practices, policies and procedures as it follows with
respect to comparable medium and heavy duty truck, bus and trailer receivables
that it services for itself or others. Except as provided in subsection 3.07(c),
the Servicer is hereby authorized to grant extensions, rebates or adjustments on
a Receivable without the prior consent of the Owner of such Receivable and to
rewrite, in its ordinary course of business, a Receivable to reflect the Full
Prepayment of a Receivable with respect to any Financed Vehicle without the
prior consent of the Owner of such Receivable. The Servicer is authorized in its
discretion to waive any prepayment charge, late payment charge or any other fees
that may be collected in the ordinary course of servicing such Receivable.

     SECTION 3.3. [Reserved.]

     SECTION 3.4. Realization Upon Liquidating Receivables. The Servicer shall
                  ----------------------------------------
use reasonable efforts, consistent with its customary servicing procedures, to
repossess or otherwise comparably convert the ownership of each Financed Vehicle
that it has reasonably determined should be repossessed or otherwise converted
following a default under the Receivable secured by each such Financed Vehicle.
The Servicer is authorized to follow such practices, policies and procedures as
it shall deem necessary or advisable and as shall be customary and usual in its
servicing of medium and heavy duty truck, bus and trailer receivables that it
services for itself or others, which practices, policies and procedures may
include reasonable efforts to realize upon or obtain benefits of any lease
assignments, proceeds from any Dealer Liability, proceeds from any International
Purchase Obligations, proceeds from any Insurance Policies and proceeds from any
Guaranties, in each case with respect to the Receivables, selling the related
Financed Vehicle or Financed Vehicles at public or private sale or sales 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 shall have suffered damage, the Servicer shall not expend funds in
connection with any repair or towards the repossession of such Financed Vehicle
unless it shall determine in its discretion that such repair and/or repossession
shall increase the proceeds of liquidation of the related Receivable by an
amount greater than the amount of such expenses. The Servicer shall be entitled
to receive Liquidation Expenses with respect to each Liquidating Receivable at
such time as the Receivable becomes a Liquidating Receivable in accordance with
subsection 4.06(b)(i).

     SECTION 3.5. Maintenance of Insurance Policies. The Servicer shall, in
                  ---------------------------------
accordance with its customary servicing procedures, require that each Obligor
shall have obtained physical damage insurance covering each Financed Vehicle as
of the execution of the related Receivable,

                                       9

<PAGE>

unless the Servicer has in accordance with its customary procedures permitted an
Obligor to self-insure the Financed Vehicle or Financed Vehicles securing such
Receivable. The Servicer shall, in accordance with its customary servicing
procedures, monitor such physical damage insurance with respect to each Financed
Vehicle that secures each Receivable.

     SECTION 3.6. Maintenance of Security Interests in Vehicles. The Servicer
                    ---------------------------------------------
shall, in accordance with its customary servicing procedures and at its own
expense, take such steps as are necessary to maintain perfection of the first
priority security interest created by each Receivable in the related Financed
Vehicle or Financed Vehicles. The Owner of each Receivable hereby authorizes the
Servicer to re-perfect such security interest as necessary because of the
relocation of a Financed Vehicle or for any other reason.

     SECTION 3.7. Covenants of the Servicer. The Servicer hereby makes the
                    -------------------------
following covenants on which the Owner Trustee, on behalf of the Trust, is
relying in acquiring the Receivables hereunder and issuing the Securities under
the other Further Transfer and Servicing Agreements. The Servicer covenants that
from and after the Closing Date:

     (a) Liens in Force. Except as contemplated in this Agreement, the Servicer
         --------------
shall not release in whole or in part any Financed Vehicle from the security
interest securing such related Receivable;

     (b) No Impairment. The Servicer shall do nothing to impair the rights of
         -------------
NFRRC or any Interested Party in and to such Receivables; and

     (c) No Modifications. The Servicer shall not amend or otherwise modify any
         ----------------
such Receivable such that the Starting Receivable Balance, the Annual Percentage
Rate or the total number of Scheduled Payments is altered or such that the final
scheduled payment on such Receivable will be due later than October 31, 2008.

     SECTION 3.8. Purchase of Receivables Upon Breach of Covenant. Upon
                    -----------------------------------------------
discovery by any of the Seller, the Servicer or any party under the Further
Transfer and Servicing Agreements of a breach of any of the covenants set forth
in Sections 3.06 and 3.07, the party discovering such breach shall give prompt
written notice thereof to the others. As of the second Accounting Date following
its discovery or receipt of notice of such breach (or, at the Servicer's
election, the first Accounting Date so following), the Servicer shall, unless it
shall have cured such breach in all material respects, purchase from the Owner
thereof any Receivable materially and adversely affected by such breach as
determined by such Owner and, on the related Distribution Date, the Servicer
shall pay the Administrative Purchase Payment. It is understood and agreed that
the obligation of the Servicer to purchase any Receivable with respect to which
such a breach has occurred and is continuing shall, if such obligation is
fulfilled, constitute the sole remedy against the Servicer for such breach
available to the Seller or any Interested Party. Neither the Owner Trustee nor
the Indenture Trustee shall have any affirmative duty to conduct any
investigation as to the occurrence of any event requiring the repurchase of any
Receivable pursuant to this Section 3.08.

                                       10

<PAGE>

     SECTION 3.9.  Total and Supplemental Servicing Fees; Payment of Certain
                   ---------------------------------------------------------
Expenses by Servicer. The Servicer is entitled to receive the Total Servicing
--------------------
Fee and Supplemental Servicing Fees out of collections in respect of the
Receivables as provided herein. Subject to any limitations on the Servicer's
liability hereunder, the Servicer shall be required to pay all expenses incurred
by it in connection with its activities under this Agreement (including fees and
disbursements of the Owner Trustee, any trustees and independent accountants,
taxes imposed on the Servicer, expenses incurred in connection with
distributions and reports to Financial Parties and all other fees and expenses
not expressly stated under this Agreement to be for the account of the Financial
Parties, but excluding federal, state and local income and franchise taxes, if
any, of the Owner Trustee or any Securityholder).

     SECTION 3.10. Servicer's Certificate. Not later than 10:00 a.m. (Chicago,
                   ----------------------
Illinois time) on each Determination Date, the Servicer shall deliver to each
Trustee and the Rating Agencies a Servicer's Certificate with respect to the
immediately preceding Monthly Period executed by the President or any Vice
President of the Servicer containing all information necessary to each such
party for making the calculations, withdrawals, deposits, transfers and
distributions required by Section 4.06, and all information required to be
provided to the Financial Parties under subsection 4.09(a). Receivables to be
purchased by the Servicer under Section 3.08 hereof or Section 5.04 of the
Purchase Agreement as of the last day of any Monthly Period shall be identified
by Receivable number (as set forth in the Schedule of Receivables). With respect
                                          -----------------------
to any Receivables for which the Seller is the Owner, the Servicer shall deliver
to the Seller such accountings relating to such Receivables and the actions of
the Servicer with respect thereto as the Seller may reasonably request.

     SECTION 3.11. Application of Collections. For the purposes of this
                   --------------------------
Agreement, as of each Accounting Date, all collections for the related Monthly
Period with respect to each Receivable shall be applied by the Servicer as
follows:

     (a) All payments by or on behalf of the Obligor (excluding Supplemental
Servicing Fees and Investment Earnings) shall be applied (i) first to reduce
                                                             -----
Outstanding Monthly Advances, if any, with respect to such Receivable, as
described in Section 5.06, (ii) second, to the Scheduled Payment for such
                                ------
Monthly Period with respect to such Receivable, and (iii) third, the remainder
                                                          -----
shall constitute, with respect to such Receivable, a Full Prepayment or Partial
Prepayment; and

     (b) A Partial Prepayment made on a Receivable is applied to reduce the
final Scheduled Payment and will thereafter, to the extent the Partial
Prepayment exceeds the final Scheduled Payment, reduce Scheduled Payments in
reverse chronological order beginning with the penultimate Scheduled Payment.
The Rebate related to such Partial Prepayment will reduce the final Scheduled
Payment and will thereafter, to the extent the Rebate exceeds the final
Scheduled Payment, reduce Scheduled Payments in reverse chronological order
beginning with the penultimate Scheduled Payment.

                                       11

<PAGE>

                                   ARTICLE IV
              SERVICER'S COVENANTS; DISTRIBUTIONS; RESERVE ACCOUNT;
                STATEMENTS TO NOTEHOLDERS AND CERTIFICATEHOLDERS

     SECTION 4.1. Annual Statement as to Compliance: Notice of Servicer
                  -----------------------------------------------------
Default.
-------

     (a) The Servicer shall deliver to each Trustee, on or before February 1 of
each year, beginning February 1, 2003, an Officer's Certificate signed by the
President or any Vice President of the Servicer, dated as of the immediately
preceding October 31, stating that (i) a review of the activities of the
Servicer during the preceding 12-month period (or, with respect to the first
such certificate, such period as shall have elapsed from the Closing Date to the
date of 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. A copy of such certificate may be
obtained by any Noteholder or any Certificateholder by a request in writing to
the Indenture Trustee or the Owner Trustee, respectively, addressed to the
Corporate Trust Office of the Indenture Trustee or the Owner Trustee,
respectively.

     (b) The Servicer shall deliver to each Trustee and to the Rating Agencies,
promptly after having obtained knowledge thereof, but in no event later than
five Business Days thereafter, written notice in an Officer's Certificate of any
event which with the giving of notice or lapse of time, or both, would become a
Servicer Default under Section 8.01. The Seller shall deliver to each Trustee,
the Servicer and the Rating Agencies, promptly after having obtained knowledge
thereof, but in no event later than five Business Days thereafter, written
notice in an Officer's Certificate of any event which with the giving of notice
or lapse of time, or both, would become a Servicer Default under clause (b) of
Section 8.01.

     SECTION 4.2. Annual Independent Accountants' Report.
                  --------------------------------------

         (a) The Servicer shall cause a firm of independent accountants, who may
also render other services to the Servicer or the Seller, to deliver to each
Trustee and the Rating Agencies, on or before February 1 of each year, beginning
February 1, 2003 with respect to the twelve months ended on the immediately
preceding October 31 (or, with respect to the first such report, such period as
shall have elapsed from the Closing Date to the date of such certificate), a
report (the "Accountants' Report") addressed to the board of directors of the
Servicer and to each Trustee, to the effect that such firm has audited the
financial statements of the Servicer and issued its report thereon and that such
audit (i) was made in accordance with generally accepted auditing standards,
(ii) included tests relating to Retail Notes serviced for others in accordance
with the requirements of the Uniform Single Audit Program for Mortgage Bankers
(the "Program"), to the extent the procedures in the Program are applicable to
the servicing obligations set forth in this Agreement and (iii) except as
described in the report, disclosed no exceptions or errors in the records
relating to Retail Notes serviced for others that, in the firm's opinion,
paragraph four of the Program requires such firm to report.

                                       12

<PAGE>

     (b) The Accountants' Report shall also indicate that the firm is
independent of the Seller and the Servicer within the meaning of the Code of
Professional Ethics of the American Institute of Certified Public Accountants.

     (c) A copy of the Accountants' Report may be obtained by any Noteholder or
any Certificateholder by a request in writing to the Indenture Trustee or the
Owner Trustee, respectively, addressed to the Corporate Trust Office of the
Indenture Trustee or the Owner Trustee, respectively.

     SECTION 4.3. Access to Certain Documentation and Information Regarding
                  ---------------------------------------------------------
Receivables. The Servicer shall provide to each Trustee reasonable access to the
-----------
documentation regarding the Receivables. The Servicer also shall provide
reasonable access to the documentation regarding the Receivables to a
Securityholder in cases where such Securityholder is required by applicable
statutes or regulations to review such documentation. In each case, such access
shall be afforded without charge but only upon reasonable request and during
normal business hours at offices of the Servicer designated by the Servicer.
Nothing in this Section 4.03 shall derogate from the obligation of the Servicer
to observe any applicable law prohibiting disclosure of information regarding
Obligors, and the failure of the Servicer to provide access as provided in this
Section 4.03 as a result of such obligation shall not constitute a breach of
this Section 4.03.

     SECTION 4.4. Amendments to Schedule of Receivables. On or before each
                  -------------------------------------
Subsequent Transfer Date occurring during the Funding Period, the Seller will
deliver to each Trustee a schedule of the Subsequent Receivables being
transferred to the Owner Trustee (and such schedule shall be deemed to
supplement the Schedule of Receivables). If the Servicer, during a Monthly
Period, assigns to a Receivable an account number that differs from the account
number previously identifying such Receivable on the Schedule of Receivables,
                                                     -----------------------
the Servicer shall deliver to the Seller and each Trustee on or before the
Distribution Date related to such Monthly Period an amendment to the Schedule of
                                                                     -----------
Receivables to report the newly assigned account number. Each such amendment
-----------
shall list all new account numbers assigned to Receivables during such Monthly
Period and shall show by cross reference the prior account numbers identifying
such Receivables on the Schedule of Receivables.
                        -----------------------

     SECTION 4.5. Assignment of Administrative Receivables and Warranty
                  -----------------------------------------------------
Receivables. Upon receipt of the Administrative Purchase Payment or the Warranty
-----------
Payment with respect to an Administrative Receivable or a Warranty Receivable,
respectively, each Trustee shall assign, without recourse, representation or
warranty, to the Servicer or the Warranty Purchaser, as applicable, all of such
Trustee's right, title and interest in, to and under (a) such Administrative
Receivable or Warranty Receivable and all monies due thereon, (b) the security
interests in the related Financed Vehicle and, to the extent permitted by law,
any accessions thereto which are financed by NFC, (c) benefits of any lease
assignments with respect to the Financed Vehicles, (d) proceeds from any
Insurance Policies with respect to such Receivable, (e) proceeds from Dealer
Liability with respect to such Receivable, proceeds from any International
Purchase Obligations with respect to such Receivable and proceeds from any
Guaranties of such Receivable, (f) the interests of such Trustee in certain
rebates of premiums and other amounts relating to the Insurance Policies and any
document

                                       13

<PAGE>

relating thereto and (g) the rights of such Trustee under the Purchase Agreement
and the Custodian Agreement with respect to such Receivable, such assignment
being an assignment outright and not for security. Upon the assignment of such
Receivable described in the preceding sentence, the Servicer or the Warranty
Purchaser, as applicable, shall own such Receivable, and all such security and
documents, free of any further obligations to either Trustee or the Financial
Parties with respect thereto. If in any Proceeding it is held that the Servicer
may not enforce a Receivable on the ground that it is not a real party in
interest or a holder entitled to enforce the Receivable, the applicable Trustee
shall, at the Servicer's expense, take such steps as the Servicer deems
necessary to enforce the Receivable, including bringing suit in the name of such
Person or the names of the Financial Parties.

     SECTION 4.6. Distributions.
                  -------------

     (a)  On or before each Determination Date, with respect to the preceding
Monthly Period and the related Distribution Date, the Servicer shall calculate
the Total Available Amount, Collected Interest, Collected Principal, the Total
Servicing Fee, the Aggregate Class A Noteholders' Interest Distributable Amount,
the Class B Noteholders' Interest Distributable Amount, the Principal Payment
Amount, the Noteholders' Principal Distributable Amount, the net amount, if any,
payable by or to the Owner Trustee under the Interest Rate Swap (including
termination payments) and all other amounts required to determine the amounts to
be deposited in or paid from each of the Collection Account, the Pre-Funding
Account, the Negative Carry Account, the Note Distribution Account, the
Certificate Distribution Account and the Reserve Account on the next succeeding
Distribution Date (or, in the case of payments due under the Interest Rate Swap,
if any, on the Business Day preceding the Distribution Date).

     (b)  On the Business Day preceding each Distribution Date, the Indenture
Trustee shall cause to be made the following withdrawals, deposits, transfers
and distributions in the amounts set forth in the Servicer's Certificate for
such Distribution Date pursuant to Section 3.10:

          (i)   from the Collection Account to the Servicer, in immediately
     available funds, reimbursement of Outstanding Monthly Advances pursuant to
     Section 5.06, payments of Liquidation Expenses with respect to Receivables
     which became Liquidating Receivables during the related Monthly Period
     pursuant to Section 3.04 and any unpaid Liquidation Expenses from prior
     periods;

          (ii)  from the Pre-Funding Account to the Collection Account, the
     Investment Earnings on the Pre-Funding Account for the related Monthly
     Period;

          (iii) from the Negative Carry Account to the Collection Account, the
     Negative Carry Amount for such Distribution Date; and

          (iv)  from the Reserve Account to the Collection Account, the lesser
     of (A) the amount of cash or other immediately available funds therein on
     the day preceding such Distribution Date and (B) the amount, if any, by
     which (I) the sum of the Total Servicing Fee,

                                       14

<PAGE>

     the Aggregate Class A Noteholders' Interest Distributable Amount, the Class
     B Noteholders' Interest Distributable Amount, the net amount, if any,
     payable by the Trust under the Interest Rate Swap and the Noteholders'
     Principal Distributable Amount exceeds (II) the sum of the Available Amount
     for such Distribution Date plus the amounts deposited to the Collection
     Account on such date pursuant to Sections 4.06(b)(ii) and 4.06(b)(iii).

     (c)  Before 12:00 noon, New York City time, on the Business Day preceding
each Distribution Date, the Indenture Trustee (based on the information
contained in the Servicer's Certificate delivered on the related Determination
Date pursuant to Section 3.10) shall make the following distributions from the
Collection Account (after the withdrawals, deposits and transfers specified in
Section 4.06(b) have been made) in the following order of priority:

          (i)   first, to the Servicer, to the extent of the Total Available
     Amount, the Total Servicing Fee;

          (ii)  second, to the Swap Counterparty, to the extent of the Total
     Available Amount (as such amount has been reduced by the distributions
     described in clause (c)(i) above), the net amount, if any, due under the
                  -------------
     Interest Rate Swap (exclusive of payments due in respect of an Early
     Termination Date of the Interest Rate Swap);

          (iii) third, to the extent of the Total Available Amount (as such
     amount has been reduced by the distributions described in clauses (c)(i)
                                                               --------------
     and (ii) above) (a) to the Note Distribution Account in respect of the
         ----
     Aggregate Class A Noteholders' Interest Distributable Amount, and (b) to
     the Swap Counterparty in respect of any payments due to the Swap
     Counterparty in connection with any Early Termination Date of the Interest
     Rate Swap, allocated between the Note Distribution Account and the Swap
     Counterparty in proportion to the amounts owing to the Swap Counterparty in
     connection with such Early Termination Date and in respect of the Aggregate
     Class A Noteholders' Interest Distributable Amount;

          (iv)  fourth, to the Note Distribution Account, to the extent of the
     Total Available Amount (as such amount has been reduced by the
     distributions described in clauses (c) (i), (ii) and (iii) above), the
     Class B Noteholders' Interest Distributable Amount;

          (v)   fifth, to the Note Distribution Account, to the extent of the
     Total Available Amount (as such amount has been reduced by the
     distributions described in clauses (c) (i), (ii), (iii) and (iv) above),
     the Noteholders' Principal Distributable Amount; and

          (vi)  sixth, to the Reserve Account, any portion of the Total
     Available Amount remaining after the distributions described in clauses (c)
     (i) through (v), inclusive, above.

                                       15

<PAGE>

     SECTION 4.7. Reserve Account.
                  ---------------

     (a) The Servicer, for the benefit of the Financial Parties, shall establish
and maintain in the name of the Indenture Trustee an Eligible Deposit Account
known as the Navistar Financial 2001-B Owner Trust Reserve Account (the "Reserve
Account") to include the money and other property deposited and held therein
pursuant to this Section 4.07(a), Section 4.07(c), Section 4.06(c) and Section
5.02(a). On the Closing Date, the Seller shall deposit the Reserve Account
Initial Deposit into the Reserve Account. The Reserve Account shall be the
property of the Owner Trustee, on behalf of the Trust, subject to the rights of
the Indenture Trustee in the Reserve Account Property.

     (b) If the amount on deposit in the Reserve Account on any Distribution
Date (after giving effect to all deposits therein or withdrawals therefrom on
such Distribution Date) exceeds the Specified Reserve Account Balance for such
Distribution Date, the Servicer shall instruct the Indenture Trustee to deposit
into the Certificate Distribution Account an amount equal to any such excess for
distribution to the Certificateholders or upon the order of the
Certificateholders in an account designated in writing by the Certificateholders
to the Servicer.

     (c) If the Servicer, pursuant to Section 5.06, determines on any
Determination Date that it is required to make a Monthly Advance and does not do
so from its own funds, the Servicer shall instruct the Indenture Trustee to
withdraw funds from the Reserve Account and deposit them in the Collection
Account to cover any shortfall. Such payment shall be deemed to have been made
by the Servicer pursuant to Section 5.06 for purposes of making distributions
pursuant to this Agreement, but shall not otherwise satisfy the Servicer's
obligation to deliver the amount of the Monthly Advances to the Collection
Account, and the Servicer shall within two Business Days replace any funds in
the Reserve Account so used. The Servicer shall not be entitled to reimbursement
for any such deemed Monthly Advances unless and until the Servicer shall have
replaced such funds in the Reserve Account.

     SECTION 4.8. Net Deposits. At any time that (i) NFC shall be the Servicer
                  ------------
and (ii) the Servicer shall be permitted by Section 5.04 to remit collections on
a basis other than a daily basis, the Servicer, the Seller, and each Trustee may
make any remittances pursuant to this Article IV net of amounts to be
distributed by the applicable recipient to such remitting party. Nonetheless,
each such party shall account for all of the above described remittances and
distributions as if the amounts were deposited and/or transferred separately.

     SECTION 4.9. Statements to Financial Parties.
                  -------------------------------

     (a) On each Distribution Date, the Owner Trustee shall include with each
distribution to each Certificateholder, and the Indenture Trustee shall include
with each distribution to each Noteholder, a statement (which statement shall
also be provided to the Rating Agencies and the Swap Counterparty) based on
(subject to the last sentence of this paragraph (a)) information in the
Servicer's Certificate furnished pursuant to Section 3.10. Each such statement
shall set forth the following information as to the Notes with respect to such
Distribution Date or the preceding Monthly Period, as applicable:

                                       16

<PAGE>

          (i)    the amount of the distribution allocable to interest on or with
     respect to each class of Notes;

          (ii)   the Aggregate Receivables Balance as of the close of business
     on the last day of such Monthly Period;

          (iii)  the amount of Outstanding Monthly Advances with respect to all
     Receivables on such Distribution Date;

          (iv)   the amount of the Total Servicing Fee paid or payable to the
     Servicer with respect to the related Monthly Period;

          (v)    the amount of Aggregate Losses for the related Monthly Period;

          (vi)   the Delinquency Percentage for the related Monthly Period;

          (vii)  the sum of all Administrative Purchase Payments and all
     Warranty Payments made for the related Monthly Period;

          (viii) the amount of the distribution allocable to principal of each
     class of Notes;

          (ix)   the Note Principal Balance and the Note Pool Factor for each
     class of Notes, each after giving effect to all payments reported under
     (viii) above on such date;

          (x)    the amounts, if any, paid to the Servicer or distributed to
     Noteholders from amounts on deposit in the Reserve Account plus amounts in
     respect thereof to be distributed to each class of Noteholders as a
     prepayment of principal (expressed as a dollar amount per $1,000 of Initial
     Principal Balance);

          (xi)   the amount of the Class A Noteholders' Interest Carryover
     Shortfall, the Noteholders' Principal Carryover Shortfall and the Class B
     Noteholders' Interest Carryover Shortfall if any, and the change in such
     amounts from the preceding Distribution Date;

          (xii)  the balance (if any) of the Reserve Account on such date, after
     giving effect to distributions, withdrawals, transfers and deposits made on
     such date, and the change in such balance from that of the prior
     Distribution Date;

          (xiii) the Negative Carry Amount and the balance, if any, of the
     Negative Carry Account on such date, after giving effect to the withdrawals
     made on such date;

          (xiv)  for Distribution Dates during the Funding Period, the Starting
     Receivables Balance of all Subsequent Receivables transferred to the Owner
     Trustee since the preceding Distribution Date, the remaining Pre-Funded
     Amount and the Investment Earnings on amounts on deposit in the Pre-Funding
     Account (if any) for the related Monthly Period;

                                       17

<PAGE>

          (xv)   for the first Distribution Date occurring on or after the last
     day of the Funding Period, the amount of any remaining Pre-Funded Amount
     that has not been used to fund the purchase of Subsequent Receivables;

          (xvi)  LIBOR and the Interest Rate on the Class A-3 Notes for the next
     Distribution Date; and

          (xvii) the amount of net swap payments under the Interest Rate Swap.

Each amount set forth pursuant to clauses (i), (iv), (viii), (x) and (xi) above
shall be expressed as a dollar amount per $1,000 of initial Note Principal
Balance. In lieu of preparing and delivering a separate statement to Financial
Parties pursuant to this Section, a Trustee may deliver a copy of the Servicer's
Certificate furnished pursuant to Section 3.10.

     (b)  Within the prescribed period of time for tax reporting purposes after
the end of each calendar year during the term of this Agreement, the Servicer
shall prepare and execute and the Indenture Trustee and the Owner Trustee shall
mail to the Swap Counterparty, and each Person who at any time during such
calendar year shall have been a holder of Notes or Certificates, respectively,
and received any payments thereon, a statement prepared and supplied by the
Servicer containing the amounts set forth in each of clauses (i), (iv), (viii),
(x) and (xi), for such calendar year or, if such Person shall have been a
Financial Party during a portion of such calendar year and received any payments
thereon, for the applicable portion of such year, for the purposes of such
Financial Party's preparation of federal income tax returns.

     SECTION 4.10. Information Provided to Rating Agencies. In addition to
                   ---------------------------------------
receiving any information or documents required to be delivered to any Rating
Agency pursuant to any Basic Document, each Rating Agency may request in writing
to the Servicer, and the Servicer shall deliver, reasonable additional
information necessary to the Rating Agencies to monitor the Notes. Promptly, but
in no event later than five Business Days, after obtaining knowledge of an
Insolvency Event with respect to the Servicer, the Seller or the Trust, the
Servicer shall deliver to each of the Ratings Agencies notice of such Insolvency
Event. Failure by the Servicer to comply with the terms of this Section 4.10
shall not constitute a "Servicer Default," an "Event of Default" or a default
under any Basic Document.

                                       18

<PAGE>

                                    ARTICLE V

            ACCOUNTS; COLLECTIONS, DEPOSITS AND INVESTMENTS; ADVANCES

         SECTION 5.1.      Establishment of Accounts.
                           -------------------------

         (a)  (i)   The Servicer, for the benefit of the Financial Parties,
shall establish and maintain in the name of the Indenture Trustee an Eligible
Deposit Account known as the Navistar Financial 2001-B Owner Trust Collection
Account (the "Collection Account"), bearing an additional designation clearly
indicating that the funds deposited therein are held for the benefit of the
Financial Parties.

              (ii)  The Servicer, for the benefit of the Noteholders, shall
establish and maintain in the name of the Indenture Trustee an Eligible Deposit
Account known as the Navistar Financial 2001-B Owner Trust Note Distribution
Account (the "Note Distribution Account"), bearing an additional designation
clearly indicating that the funds deposited therein are held for the benefit of
the Noteholders.

              (iii) Pursuant to the Trust Agreement, the Servicer, for the
benefit of the Certificateholders, shall establish and maintain in the name of
the Owner Trustee an Eligible Deposit Account known as the Navistar Financial
2001-B Owner Trust Certificate Distribution Account (the "Certificate
Distribution Account"), bearing an additional designation clearly indicating
that the funds deposited therein are held for the benefit of the
Certificateholders.

              (iv)  The Servicer, for the benefit of the Noteholders, shall
establish and maintain in the name of the Indenture Trustee an Eligible Deposit
Account known as the Navistar Financial 2001-B Owner Trust Pre-Funding Account
(the "Pre-Funding Account"), bearing an additional designation clearly
indicating that the funds deposited therein are held for the benefit of the
Noteholders.

              (v)   The Servicer, for the benefit of the Financial Parties,
shall establish and maintain in the name of the Indenture Trustee an Eligible
Deposit Account known as the Navistar 2001-B Owner Trust Negative Carry Account
(the "Negative Carry Account") bearing an additional designation clearly
indicating that the funds deposited therein are held for the benefit of the
Financial Parties.

         (b)  (i)   Each of the Designated Accounts shall be initially
established with the Indenture Trustee and shall be maintained with the
Indenture Trustee so long as (A) the short-term unsecured debt obligations of
the Indenture Trustee have the Required Deposit Rating or (B) each of the
Designated Accounts are maintained in the corporate trust department of the
Indenture Trustee. All amounts held in such accounts (including amounts, if any,
which the Servicer is required to remit daily to the Collection Account pursuant
to Section 5.04) shall, to the extent permitted by applicable laws, rules and
regulations, be invested, at the written direction of the Servicer, by such bank
or trust company in Eligible Investments; provided, that funds in the Collection
Account in an amount not in excess of 20% of the Aggregate Receivables Balance
as of the preceding Accounting Date may be

                                       19

<PAGE>

invested in investments which have a rating from S&P of "A-1" rather than
"A-1+," if such investments otherwise constitute Eligible Investments. Such
written direction shall constitute certification by the Servicer that any such
investment is authorized by this Section 5.01. Funds deposited in the Reserve
Account, the Negative Carry Account and the Pre-Funding Account shall be
invested in Eligible Investments which mature prior to the next Distribution
Date; provided, that such investments may mature on a later date if the Rating
Agency Condition is satisfied with respect thereto. Investments in Eligible
Investments shall be made in the name of the Indenture Trustee or its nominee,
and such investments shall not be sold or disposed of prior to their maturity.
Should the short-term unsecured debt obligations of the Indenture Trustee (or
any other bank or trust company with which the Designated Accounts are
maintained) no longer have the Required Deposit Rating, then the Servicer shall
within 10 Business Days (or such longer period, not to exceed 30 calendar days,
upon satisfaction of the Rating Agency Condition with respect thereto), with the
Indenture Trustee's assistance as necessary, cause the Designated Accounts (A)
to be moved to a bank or trust company, the short-term unsecured debt
obligations of which shall have the Required Deposit Rating, or (B) to be moved
to the corporate trust department of the Indenture Trustee. Except with respect
to Investment Earnings on amounts on deposit in the Pre-Funding Account,
Investment Earnings on funds deposited in the Designated Accounts shall be
deposited into the Certificate Distribution Account for distribution to the
Certificateholders, except when the Indenture Trustee is acting as successor
Servicer in which case such Investment Earnings shall be payable to the
Indenture Trustee as successor Servicer. The Indenture Trustee or the other
Person holding the Designated Accounts as provided in this Section 5.01(b)(i)
shall be the "Securities Intermediary." If the Securities Intermediary shall be
a Person other than the Indenture Trustee, the Servicer shall obtain the express
agreement of such Person to the obligations of the Securities Intermediary set
forth in this Section 5.01.

               (ii)    With respect to the Designated Account Property, the
Securities Intermediary agrees, by its acceptance hereof, that:

                      (A)   The Designated Accounts are accounts to which
              Financial Assets will be credited.

                      (B)   All securities or other property underlying any
              Financial Assets credited to the Designated Accounts shall be
              registered in the name of the Securities Intermediary, indorsed to
              the Securities Intermediary or in blank or credited to another
              securities account maintained in the name of the Securities
              Intermediary and in no case will any Financial Asset credited to
              any of the Designated Accounts be registered in the name of the
              Owner Trustee, the Servicer or the Seller, payable to the order of
              the Owner Trustee, the Servicer or the Seller or specially
              indorsed to the Owner Trustee, the Servicer or the Seller except
              to the extent the foregoing have been specially indorsed to the
              Securities Intermediary or in blank.

                      (C)   All property delivered to the Securities
              Intermediary pursuant to this Agreement will be promptly credited
              to the appropriate Designated Account.

                                       20

<PAGE>

                      (D)   Each item of property (whether investment property,
              Financial Asset, security, instrument or cash) credited to a
              Designated Account shall be treated as a "financial asset" within
              the meaning of Section 8-102(a)(9) of the New York UCC.

                      (E)   If at any time the Securities Intermediary shall
              receive any order from the Indenture Trustee directing transfer or
              redemption of any Financial Asset relating to the Securities
              Accounts, the Securities Intermediary shall comply with such
              entitlement order without further consent by the Owner Trustee,
              the Servicer, the Seller or any other Person.

                      (F)   The Designated Accounts shall be governed by the
              laws of the State of New York, regardless of any provision in any
              other agreement. For purposes of the UCC, New York shall be
              deemed to be the Securities Intermediary's jurisdiction and the
              Designated Accounts (as well as the Securities Entitlements
              related thereto) shall be governed by the laws of the State of
              New York.

                      (G)   The Securities Intermediary has not entered into,
              and until the termination of this Agreement will not enter into,
              any agreement with any other person relating to the Designated
              Accounts and/or any Financial Assets credited thereto pursuant to
              which it has agreed to comply with entitlement orders (as defined
              in Section 8-102(a)(8) of the New York UCC) of such other person
              and the Securities Intermediary has not entered into, and until
              the termination of this Agreement will not enter into, any
              agreement with the Owner Trustee, the Seller, the Servicer, the
              Indenture Trustee or the Swap Counterparty purporting to limit or
              condition the obligation of the Securities Intermediary to comply
              with entitlement orders as set forth in Section 5.01(b)(ii)(E)
              hereof.

                      (H)   Except for the claims and interest of the Indenture
              Trustee and of the Owner Trustee in the Designated Accounts, the
              Securities Intermediary knows of no claim to, or interest in, the
              Designated Accounts or in any Financial Asset credited thereto. If
              any other person asserts any lien, encumbrance or adverse claim
              (including any writ, garnishment, judgment, warrant of attachment,
              execution or similar process) against the Designated Accounts or
              in any Financial Asset carried therein, the Securities
              Intermediary will promptly notify the Indenture Trustee, the
              Servicer, the Swap Counterparty and the Owner Trustee thereof.

                      (I)   The Securities Intermediary will promptly send

              copies of all statements, confirmations and other correspondence
              concerning the Designated Accounts and/or any Designated Account
              Property simultaneously to each of the Servicer and the Indenture
              Trustee at the addresses set forth in Appendix B to this
              Agreement.

              (iii)    The Servicer shall have the power, revocable by the
Indenture Trustee (or by the Owner Trustee with the consent of the Indenture
Trustee) to instruct the Indenture Trustee to

                                       21

<PAGE>

make withdrawals and payments from the Designated Accounts for the purpose of
permitting the Servicer or the Owner Trustee to carry out its respective duties
hereunder or permitting the Indenture Trustee to carry out its duties under the
Indenture.

              (iv)  The Indenture Trustee shall possess all right, title and
interest in and to all funds on deposit from time to time in the Designated
Accounts and in all proceeds thereof (except Investment Earnings). Except as
otherwise provided herein or in the Indenture, the Designated Accounts shall be
under the sole dominion and control of the Indenture Trustee for the benefit of
the Financial Parties.

              (v)   The Servicer shall not direct the Indenture Trustee to make
any investment of any funds or to sell any investment held in any of the
Designated Accounts unless the security interest granted and perfected in such
account shall continue to be perfected in such investment or the proceeds of
such sale, in either case without any further action by any Person, and, in
connection with any direction to the Indenture Trustee to make any such
investment or sale, if requested by the Indenture Trustee, the Servicer shall
deliver to the Indenture Trustee an Opinion of Counsel, acceptable to the
Indenture Trustee, to such effect.

         (c)  Pursuant to the Trust Agreement, the Owner Trustee shall possess
all right, title and interest in and to all funds on deposit from time to time
in the Certificate Distribution Account and in all proceeds thereof. Except as
otherwise provided herein or in the Trust Agreement, the Certificate
Distribution Account shall be under the sole dominion and control of the Owner
Trustee for the benefit of the Certificateholders. If, at any time, the
Certificate Distribution Account ceases to be an Eligible Deposit Account, the
Servicer shall within 10 Business Days (or such longer period, not to exceed 30
calendar days, as to which each Rating Agency may consent) establish a new
Certificate Distribution Account as an Eligible Deposit Account and shall cause
the Owner Trustee to transfer any cash and/or any investments in the old
Certificate Distribution Account to such new Certificate Distribution Account.

         (d)  The Indenture Trustee, the Owner Trustee, the Securities
Intermediary and each other Eligible Deposit Institution with whom a Designated
Account or the Certificate Distribution Account is maintained waives any right
of set-off, counterclaim, security interest or bankers' lien to which it might
otherwise be entitled.

         SECTION 5.2.   Pre-Funding Account. (a) On the Closing Date, the Seller
                        -------------------
shall deposit in the Pre-Funding Account $207,670,906.02 from the net proceeds
of the sale of the Notes. On each Subsequent Transfer Date, the Servicer shall
instruct the Indenture Trustee to withdraw from the Pre-Funding Account an
amount equal to (i) the aggregate Starting Receivable Balance of the Subsequent
Receivables transferred to the Owner Trustee on such Subsequent Transfer Date
less the Reserve Account Subsequent Transfer Deposit with respect to such
Subsequent Transfer Date and distribute such amount to or upon the order of the
Seller upon satisfaction of the conditions set forth in Section 2.02(b) with
respect to such transfer, and (ii) the Reserve Account Subsequent Transfer
Deposit with respect to such Subsequent Transfer Date and, on behalf of the
Seller, deposit such amount in the Reserve Account.

                                       22

<PAGE>

         (b)   If the Pre-Funded Amount has not been reduced to zero on or prior
to the Distribution Date on which the Funding Period ends (or, if the Funding
Period does not end on a Distribution Date, on the first Distribution Date
following the end of the Funding Period), the Servicer shall instruct the
Indenture Trustee to transfer from the Pre-Funding Account on such Distribution
Date any amount then remaining in the Pre-Funding Account to the Note
Distribution Account and, if such amount is greater than $100,000, the Seller,
on behalf of the Owner Trustee, will deposit into the Note Distribution Account
an amount equal to the aggregate of Noteholders' Prepayment Premiums for all
classes of Notes; provided, however, that the Owner Trustee's obligation to pay
                  -----------------
the Noteholders' Prepayment Premiums shall be limited to funds which are
received by the Owner Trustee from the Seller pursuant to Section 2.02(c) hereof
as liquidated damages for the failure to deliver the Subsequent Receivables, and
no other assets of the Owner Trustee will be available for making such payments.
If the amount of funds available for payment of the Noteholders' Prepayment
Premiums is less than the sum of the Noteholders' Prepayment Premium for each
class of Notes, then the available funds will be allocated among each class of
Notes in accordance with the Pre-Funded Percentage for such class of Notes.

         SECTION 5.3.   Negative Carry Account. (a) On the Closing Date, the
                        ----------------------
Seller shall deposit in the Negative Carry Account $1,523,000.41 (the "Negative
Carry Account Initial Deposit") from the net proceeds of the sale of the Notes.
On or before the Transfer Date preceding each Distribution Date occurring on or
prior to the first Distribution Date that occurs on or after the end of the
Funding Period, the Servicer will instruct the Indenture Trustee to withdraw
from the Negative Carry Account and deposit into the Collection Account an
amount equal to the Negative Carry Amount for such Distribution Date.

         (b)   On each Distribution Date during the Funding Period, the Servicer
will instruct the Indenture Trustee to withdraw from the Negative Carry Account
an amount equal to the excess, if any, of the amount on deposit in the Negative
Carry Account over the Required Negative Carry Account Balance and deposit it
(i) in the Certificate Distribution Account for distribution to the
Certificateholders or (ii) upon the order of the Certificateholders in an
account designated in writing by the Certificateholders to the Servicer, and on
the Distribution Date on or immediately following the last day of the Funding
Period, the Servicer will instruct the Indenture Trustee to withdraw from the
Negative Carry Account the amount remaining on deposit in the Negative Carry
Account and deposit it in the Certificate Distribution Account for distribution
to the Certificateholders or upon the order of the Certificateholders in an
account designated in writing by the Certificateholders to the Servicer.

         SECTION 5.4.   Collections. The Servicer shall remit to the Collection
                        -----------
Account all payments by or on behalf of the Obligors on the Receivables, all
Insurance Proceeds, all Liquidation Proceeds, proceeds from any Dealer
Liability, proceeds from any International Purchase Obligations and proceeds
from any Guaranties within two Business Days after receipt thereof.
Notwithstanding the foregoing, the Servicer shall not be required to remit such
collections within such two Business Days but may remit collections received
during a Monthly Period to the Collection Account in immediately available funds
on the Business Day immediately preceding the related Distribution

                                       23

<PAGE>

Date but only for so long as (i) NFC is the Servicer, (ii) (x) the Servicer
satisfies the requirements for monthly remittances established by the Rating
Agencies initially rating the Securities, and upon the satisfaction of such
requirements, the Rating Agencies which initially rated the Securities reaffirm
the rating of the Securities at the level at which they would be rated if
collections were remitted within two Business Days or (y) the short-term
unsecured debt obligations of NFC are rated at least A-1+ by S&P and P-1 by
Moody's Investors Service, Inc., and (iii) a Servicer Default shall not have
occurred and be continuing. The Indenture Trustee shall not be deemed to have
knowledge of any event or circumstance under clause (iii) of the immediately
preceding sentence that would require remittance within two Business Days by the
Servicer to the Collection Account unless the Indenture Trustee has received
notice of such event or circumstance from the Seller or the Servicer in an
Officer's Certificate or from Noteholders whose Notes evidence not less than 25%
of the Outstanding Amount of the Voting Notes as of the close of the preceding
Distribution Date or unless a Responsible Officer in the Corporate Trust Office
with knowledge hereof and familiarity herewith has actual knowledge of such
event or circumstance. For purposes of this Article V the phrase "payments by or
on behalf of Obligors" shall mean payments made by Persons other than the
Servicer.

         SECTION 5.5.   Investment Earnings and Supplemental Servicing Fees. The
                        ---------------------------------------------------
Servicer shall be entitled to receive all Supplemental Servicing Fees, and,
except as otherwise provided in Section 5.01(b)(i) hereof, the
Certificateholders (via the Certificate Distribution Account or such other
account as shall be designated in writing by the Certificateholders to the
Servicer) shall be entitled to receive all Investment Earnings (other than
Investment Earnings from amounts on deposit in the Pre-Funding Account), when
and as paid without any obligation to (a) either Trustee, (b) with respect to
the Supplemental Servicing Fees, the Certificateholders or (c) with respect to
the Investment Earnings, the Servicer, in respect thereof. The Servicer will not
have any obligation to deposit any such amount in any account established
hereunder. To the extent that any such amount shall be held in any account
(other than, with respect to amounts to be distributed to the
Certificateholders, the Certificate Distribution Account) held by either
Trustee, or otherwise established hereunder, such amount will be withdrawn
therefrom and paid to the Servicer or deposited in the Certificate Distribution
Account for distribution to the Certificateholders, as applicable, upon
presentation of a certificate signed by a Responsible Officer of such Person
setting forth, in reasonable detail, the amount of such Supplemental Servicing
Fees or such Investment Earnings, respectively.

                                       24

<PAGE>

         SECTION 5.6.   Monthly Advances. Subject to the following sentence, as
                        ----------------
of each Accounting Date, if the payments during the related Monthly Period by or
on behalf of the Obligor on a Receivable (other than an Administrative
Receivable, a Warranty Receivable or a Liquidating Receivable) after application
under subsection 3.11(a)(i) shall be less than the Scheduled Payment, whether as
a result of any extension granted to the Obligor or otherwise, then the Servicer
shall, subject to the following sentence, advance any such shortfall (such
amount, a "Monthly Advance"). The Servicer shall be obligated to make a Monthly
Advance in respect of a Receivable only to the extent that the Servicer, in its
sole discretion, shall determine that such advance shall be recoverable (in
accordance with the two immediately following sentences) from subsequent
collections or recoveries on such Receivable. Subject to Section 4.07(c), the
Servicer shall be reimbursed for Outstanding Monthly Advances with respect to a
Receivable from the following sources with respect to such Receivable, in each
case as set forth in this Agreement: (i) subsequent payments by or on behalf of
the Obligor, (ii) collections of Liquidation Proceeds, (iii) the Administrative
Purchase Payment and (iv) the Warranty Payment. At such time as the Servicer
shall determine that any Outstanding Monthly Advances with respect to any
Receivable shall not be recoverable from payments with respect to such
Receivable, the Servicer shall be reimbursed from any collections made on other
Receivables.

         SECTION 5.7.   Additional Deposits. The Servicer shall deposit in the
                        -------------------
Collection Account the aggregate Monthly Advances pursuant to Section 5.06. The
Servicer and the Seller shall deposit in the Collection Account the aggregate
Administrative Purchase Payments and Warranty Payments with respect to
Administrative Receivables and Warranty Receivables, respectively. All such
deposits with respect to a Monthly Period shall be made in immediately available
funds on the Business Day before the Distribution Date related to such Monthly
Period.

                                   ARTICLE VI
                   THE SELLER; REPRESENTATIONS AND WARRANTIES
                         OF THE SELLER AND THE SERVICER

         SECTION 6.1.   Representations and Warranties of the Seller and the
                        ----------------------------------------------------
Servicer. The Seller and the Servicer each make the following representations
--------
and warranties as to itself on which the Owner Trustee is relying in acquiring
the Receivables hereunder and issuing the Securities under the other Further
Transfer and Servicing Agreements. The following representations and warranties
are made severally by each of the Seller and the Servicer (for purposes of this
Section 6.01, each, a "Party") and speak as of the Closing Date in the case of
the Initial Receivables and as of the applicable Subsequent Transfer Date in the
case of the Subsequent Receivables, but in each case shall survive the sale,
transfer and assignment of such Receivables to the Owner Trustee and the pledge
thereof to the Indenture Trustee pursuant to the Indenture.

         (a)    Representations and Warranties as to each Party.
                -----------------------------------------------

                (i)    Organization and Good Standing.  Such Party has been duly
                       ------------------------------
         organized and is validly existing as a corporation in good standing
         under the laws of the State of Delaware,

                                       25

<PAGE>

         with power and authority to own its properties and to conduct its
         business as such properties are presently owned and such business is
         presently conducted, and had at all relevant times, and now has, power,
         authority and legal right (A) in the case of the Seller, to acquire and
         own the Receivables and (B) in the case of the Servicer, to service the
         Receivables as provided in this Agreement;

                  (ii)   Due Qualification. Such Party 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
         (including, in the case of the Servicer, the servicing of the
         Receivables as required by this Agreement) requires or shall require
         such qualification;

                  (iii)  Power and Authority. Such Party (A) has the power and
                         -------------------
         authority to execute and deliver the Further Transfer and Servicing
         Agreements to which it is a party (as used in this Section 6.01(a), the
         "applicable Further Transfer and Servicing Agreements") and to carry
         out the respective terms of such agreements and, (B) in the case of the
         Seller, has the power and authority to sell and assign the property to
         be sold and assigned to and deposited with the Owner Trustee as part of
         the Owner Trust Estate and has duly authorized such sale and assignment
         to the Owner Trustee by all necessary corporate action; and the
         execution, delivery and performance by such Party of the applicable
         Further Transfer and Servicing Agreements have been duly authorized by
         such Party by all necessary corporate action;

                  (iv)   Binding Obligations. The applicable Further Transfer
                         -------------------
          and Servicing Agreements, when duly executed and delivered, shall
         constitute a legal, valid and binding obligation of such Party
         enforceable against such Party in accordance with its terms, except as
         enforceability may be limited by applicable bankruptcy, insolvency,
         reorganization or other similar laws affecting the enforcement of
         creditors' rights in general and by general principles of equity,
         regardless of whether such enforceability is considered in a proceeding
         in equity or at law;

                  (v)    No Violation. The consummation by such Party of the
                         ------------
         transactions contemplated by the applicable Further Transfer and
         Servicing Agreements and the fulfillment of the terms of such
         agreements by such Party shall 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 such Party, or any indenture, agreement or
         other instrument to which such Party 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
         or other instrument, other than the applicable Further Transfer and
         Servicing Agreements, or violate any law or, to such Party's knowledge,
         any order, rule or regulation applicable to such Party of any court or
         of any federal or state regulatory body, administrative agency or other
         governmental instrumentality having jurisdiction over such Party or any
         of its properties; and

                                       26

<PAGE>

                  (vi)   No Proceedings. There are no proceedings or, to such
                         --------------
         Party's knowledge, investigations pending or, to such Party's
         knowledge, threatened before any court, regulatory body, administrative
         agency or other tribunal or governmental instrumentality having
         jurisdiction over such Party or its properties (i) asserting the
         invalidity of the applicable Further Transfer and Servicing Agreements,
         any Securities issued pursuant thereto and, in the case of the Seller,
         the Custodian Agreement or the Administration Agreement, (ii) seeking
         to prevent the issuance of such Securities or the consummation of any
         of the transactions contemplated by the applicable Further Transfer and
         Servicing Agreements and, in the case of the Seller, the Custodian
         Agreement or the Administration Agreement, or (iii) seeking any
         determination or ruling that might materially and adversely affect the
         performance by such Party of its obligations under, or the validity or
         enforceability of, such Securities, the applicable Further Transfer and
         Servicing Agreements or, in the case of the Seller, the Custodian
         Agreement or the Administration Agreement.

         (b)       Representations and Warranties of the Seller Only.
                   -------------------------------------------------

                  (i)    Good Title. No Receivable has been sold, transferred,
                         ----------
         assigned or pledged by the Seller to any Person other than the Owner
         Trustee; immediately prior to the conveyance of the Receivables
         pursuant to this Agreement, the Seller had good and marketable title
         thereto, free of any Lien (except for any Lien which may have existed
         in accessions to the Financed Vehicles not financed by NFC); and, upon
         execution and delivery of this Agreement and execution and delivery of,
         with respect to the Initial Receivables, the Initial PSA Assignment,
         and, with respect to any Subsequent Receivables, the related Subsequent
         Transfer PSA Assignment by the Seller, the Owner Trustee shall have all
         of the right, title and interest of the Seller in, to and under the
         Purchased Property transferred thereby free of any Lien (except for any
         Lien which may exist in accessions to the Financed Vehicles not
         financed by NFC);

                  (ii)   All Filings Made. All filings (including UCC filings)
                         ----------------
         necessary in any jurisdiction to give the Owner Trustee a first
         priority perfected security or ownership interest in the Purchased
         Property (to the extent it constitutes Code Collateral) shall have been
         made, and the Receivables constitute Code Collateral; and

                  (iii)  Valid Sale. This Agreement and the Initial PSA
                         ----------
         Assignment constitute, and each Subsequent Transfer PSA Assignment when
         duly executed and delivered shall constitute, a valid sale, transfer
         and assignment of the Purchased Property transferred thereby,
         enforceable against creditors of and purchasers from the Seller.

         (c)       Representations and Warranties of the Servicer Only.
                   ---------------------------------------------------

                  (i)    Liquidation Expenses. The amounts defined as
                         --------------------
         "Liquidation Expenses" are a reasonable estimate of such expenses,
         reasonably related to the Servicer's experience for such expenses in
         servicing comparable medium and heavy duty truck, bus and trailer
         receivables.

                                       27

<PAGE>

             (ii)   Purchase Agreement Representations.  The representations
                    ----------------------------------
         and warranties in Sections 3.01 and 3.02 of the Purchase Agreement are
         true as of the Closing Date and each Subsequent Transfer Date.

         SECTION 6.2.    Liability of Seller. The Seller shall be liable in
                         --------------------
accordance with this Agreement only to the extent of the obligations in this
Agreement specifically undertaken by the Seller.

         SECTION 6.3.    Merger or Consolidation of, or Assumption of the
                         ------------------------------------------------
Obligations of, Seller; Amendment of Certificate of Incorporation.
-----------------------------------------------------------------

         (a)   Any corporation (i) into which the Seller may be merged or
consolidated, (ii) resulting from any merger or consolidation to which the
Seller shall be a party, (iii) succeeding to the business of the Seller, or (iv)
more than 50% of the voting stock of which is owned directly or indirectly by
NIC, which corporation in any of the foregoing cases executes an agreement of
assumption to perform every obligation of the Seller under this Agreement, shall
be the successor to the Seller under this Agreement without the execution or
filing of any document or any further act on the part of any of the parties to
this Agreement. The Seller shall provide 10 days' prior notice of any merger,
consolidation or succession pursuant to this Section 6.03 to the Rating
Agencies.

         (b)   The Seller hereby agrees that during the term of this Agreement
it shall not amend Articles Third, Fourth, Fifth, Twelfth or Fourteenth of its
Restated Certificate of Incorporation without obtaining the prior written
consent of the Rating Agencies or without obtaining the prior written consent of
Noteholders whose Notes evidence not less than a majority of the Outstanding
Amount of the Voting Notes as of the close of the preceding Distribution Date
and the prior written consent of the Holders of Certificates evidencing not less
than a majority of the ownership interest in the Trust as of the close of the
preceding Distribution Date.

         SECTION 6.4.    Limitation on Liability of Seller and Others. The
                         --------------------------------------------
Seller and any director or officer or employee or agent of the Seller may rely
in good faith on the advice of counsel or on any document of any kind prima
facie properly executed and submitted by any Person respecting any matters
arising under this Agreement. The Seller shall not be under any obligation to
appear in, prosecute or defend any legal action that is not incidental to its
obligations as Seller of the Receivables under this Agreement and that in its
opinion may involve it in any expense or liability.

         SECTION 6.5.    Seller May Own Securities. Each of the Seller and any
                         -------------------------
Person controlling, controlled by or under common control with the Seller may in
its individual or any other capacity become the owner or pledgee of Securities
with the same rights as it would have if it were not the Seller or an Affiliate
thereof except as otherwise specifically provided herein. Except as otherwise
provided herein, Securities so owned by or pledged to the Seller or such
controlling or commonly controlled Person shall have an equal and proportionate
benefit under the provisions of this Agreement, without preference, priority or
distinction as among all of such Securities.

                                       28

<PAGE>

                                   ARTICLE VII
                       LIABILITIES OF SERVICER AND OTHERS

         SECTION 7.1.    Liability of Servicer; Indemnities.
                         ----------------------------------

         (a)    The Servicer shall be liable in accordance with this Agreement
only to the extent of the obligations in this Agreement specifically undertaken
by the Servicer. Such obligations shall include the following:

                (i)   The Servicer shall defend, indemnify and hold harmless the
         Indenture Trustee, the Owner Trustee, the Owner Trust Estate and the
         Financial Parties from and against any and all costs, expenses, losses,
         damages, claims and liabilities arising out of or resulting from the
         use, ownership or operation by the Servicer or any Affiliate thereof of
         any Financed Vehicle;

                (ii)  The Servicer shall indemnify, defend and hold harmless the
         Owner Trustee and the Indenture Trustee from and against any taxes that
         may at any time be asserted against any such Person with respect to the
         transactions contemplated in this Agreement, including any sales, gross
         receipts, general corporation, Illinois corporate income, tangible
         personal property, privilege or license taxes (but not including any
         taxes asserted with respect to, and as of the date of, the sale of the
         Receivables to the Owner Trustee or the issuance and original sale of
         the Securities, or asserted with respect to ownership of the
         Receivables, or federal or other income taxes arising out of
         distributions on the Securities, or any fees or other compensation
         payable to any such Person) and costs and expenses in defending against
         the same;

                (iii) The Servicer shall indemnify, defend and hold harmless,
         the Owner Trustee, the Indenture Trustee and the Financial Parties from
         and against any and all costs, expenses, losses, claims, damages, and
         liabilities to the extent that such cost, expense, loss, claim, damage,
         or liability arose out of, or was imposed upon such Trustee or the
         Financial Parties through the negligence, willful misfeasance or bad
         faith of the Servicer in the performance of its duties under this
         Agreement and any other Transfer and Servicing Agreements or by reason
         of reckless disregard of its obligations and duties under any of the
         Transfer and Servicing Agreements; and

                (iv)  The Servicer (other than the Indenture Trustee in its
         capacity as successor Servicer pursuant to Section 8.02 hereof) shall
         indemnify, defend and hold harmless each Trustee and their respective
         agents, officers, directors and servants, from and against all costs,
         expenses, losses, claims, damages and liabilities arising out of or
         incurred in connection with (x) in the case of the Owner Trustee, the
         Indenture Trustee's performance of its duties under the Basic
         Documents, (y) in the case of the Indenture Trustee, the Owner
         Trustee's performance of its duties under the Basic Documents or (z)
         the acceptance, administration or performance by, or action or inaction
         of, the applicable Trustee of the trusts and duties contained in this
         Agreement, the Basic Documents, the Indenture (in the case of

                                       29

<PAGE>

         the Indenture Trustee), including the administration of the Trust
         Estate, and the Trust Agreement (in the case of the Owner Trustee),
         including the administration of the Owner Trust Estate, except in each
         case to the extent that such cost, expense, loss, claim, damage or
         liability: (A) is due to the willful misfeasance, bad faith or
         negligence (except for errors in judgment) of the Person seeking to be
         indemnified, (B) to the extent otherwise payable to the Indenture
         Trustee, arises from the Indenture Trustee's breach of any of its
         representations or warranties in Section 6.13 of the Indenture or (C)
         to the extent otherwise payable to the Owner Trustee, arises from the
         Owner Trustee's breach of any of its representations or warranties set
         forth in Section 6.6 of the Trust Agreement.

         (b)   Indemnification under this Section 7.01 shall survive the
resignation or removal of the Owner Trustee or the Indenture Trustee or the
termination of this Agreement and shall include reasonable fees and expenses of
counsel and expenses of litigation. If the Servicer has made any indemnity
payments pursuant to this Section 7.01 and the recipient thereafter collects any
of such amounts from others, the recipient shall promptly repay such amounts
collected to the Servicer, without interest.

         SECTION 7.2.    Merger or Consolidation of, or Assumption of the
                         ------------------------------------------------
Obligations of, the Servicer. Any corporation (a) into which the Servicer may be
----------------------------
merged or consolidated, (b) resulting from any merger, conversion or
consolidation to which the Servicer shall be a party, (c) succeeding to the
business of the Servicer, or (d) more than 50% of the voting stock of which is
owned directly or indirectly by NIC and which is otherwise servicing the
Seller's receivables, which corporation in any of the foregoing cases executes
an agreement of assumption to perform every obligation of the Servicer under
this Agreement shall 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, notwithstanding anything in this Agreement
to the contrary. The Servicer shall provide notice of any merger, consolidation
or succession pursuant to this Section 7.02 to the Rating Agencies.

         SECTION 7.3.    Limitation on Liability of Servicer and Others.
                         ----------------------------------------------

         (a)   Neither the Servicer nor any of the directors or officers or
employees or agents of the Servicer shall be under any liability to the Owner
Trustee or the Financial Parties, except as specifically provided in this
Agreement, for any action taken or for refraining from the taking of any action
pursuant to the Further Transfer and Servicing Agreements or for errors in
judgment; provided, however, that this provision shall not protect the Servicer
          --------  -------
or any such Person against any liability that would otherwise be imposed by
reason of willful misfeasance, bad faith or negligence (except errors in
judgment) in the performance of duties or by reason of reckless disregard of
obligations and duties under the Further Transfer and Servicing Agreements. The
Servicer and any director, officer or employee or agent of the Servicer may rely
in good faith on the advice of counsel or on any document of any kind prima
facie properly executed and submitted by any Person respecting any matters
arising under this Agreement.

         (b)   [Reserved.]

                                       30

<PAGE>

         (c)   Except as provided in this Agreement, the Servicer shall not be
under any obligation to appear in, prosecute or defend any legal action that is
not incidental to its duties to service the Receivables in accordance with this
Agreement and that in its opinion may involve it in any expense or liability;
provided, however, that the Servicer may undertake any reasonable action that it
--------  -------
may deem necessary or desirable in respect of this Agreement and the rights and
duties of the parties to this Agreement and the interests of the Financial
Parties under this Agreement and the Noteholders and (to the extent expressly
provided therein) the Certificateholders under the Indenture and the interests
of the Certificateholders under the Trust Agreement. In such event, the legal
expenses and costs for such action and any liability resulting therefrom shall
be expenses, costs and liabilities of the Owner Trustee payable from the Owner
Trust Estate and the Servicer shall be entitled to be reimbursed therefor.

         (d)   The Applicable Trustee shall distribute out of the Collection
Account on a Distribution Date any amounts permitted for reimbursement pursuant
to subsection 7.03(c) which have not been previously reimbursed after any
deposit to the Reserve Account pursuant to Section 4.06(c)(v) and before any
distribution to the Certificate Distribution Account pursuant to Section
4.07(b); provided, however, that the Applicable Trustee shall not distribute
         --------  -------
such amounts if the amount on deposit in the Reserve Account (after giving
effect to all deposits and withdrawals pursuant to Sections 4.06(b) and (c) and
Section 4.07(c), on such Distribution Date) is greater than zero but less than
the Specified Reserve Account Balance for such Distribution Date.

         SECTION 7.4.    Delegation of Duties. So long as NFC acts as Servicer,
                        --------------------
the Servicer may, at any time without notice or consent, delegate any duties
under this Agreement to any corporation more than 50% of the voting stock of
which is owned, directly or indirectly, by NIC. The Servicer may at any time
perform specific duties as Servicer through sub-contractors who are in the
business of servicing medium and heavy duty truck, bus and trailer receivables;
provided, however, that no such delegation shall relieve the Servicer of its
-------- ------- responsibility with respect to such duties.

         SECTION 7.5.    Servicer Not to Resign. Subject to the provisions of
                         ----------------------
Section 8.02, the Servicer shall not resign from the obligations and duties
imposed on it by this Agreement as Servicer except upon determination that the
performance of its duties under this Agreement is no longer permissible under
applicable law. Any such determination permitting the resignation of the
Servicer shall be evidenced by an Opinion of Counsel to such effect delivered to
each Trustee. No such resignation shall become effective until the Indenture
Trustee or a successor Servicer shall have assumed the responsibilities and
obligations of the Servicer in accordance with Section 8.02.

                                  ARTICLE VIII
                                     DEFAULT

         SECTION 8.1.   Servicer Defaults.  Each of the following shall
                        -----------------
constitute a "Servicer Default:"

                                       31

<PAGE>

         (a)    any failure by the Servicer to deliver to the Indenture Trustee
for deposit in any of the Designated Accounts or to the Owner Trustee for
deposit in the Certificate Distribution Account any required payment or to
direct the Indenture Trustee to make any required distributions therefrom, which
failure continues unremedied for a period of five Business Days after written
notice is received by the Servicer from the Applicable Trustee or after
discovery of such failure by an officer of the Servicer;

         (b)    failure on the part of the Seller or the Servicer to duly
observe or perform in any material respect any other covenants or agreements of
the Seller or the Servicer set forth in the Purchase Agreement, this Agreement
or any of the other Further Transfer and Servicing Agreements which failure (i)
materially and adversely affects the rights of Financial Parties, and (ii)
continues unremedied for a period of 60 days after the date on which written
notice of such failure, requiring the same to be remedied, shall have been given
to the Seller or the Servicer, as applicable, by either Trustee, or to the
Seller or the Servicer, as applicable, and to either Trustee by Noteholders
whose Notes evidence not less than 25% of the Outstanding Amount of the Voting
Notes as of the close of the preceding Distribution Date (or, if the Notes have
been paid in full and the Indenture has been discharged in accordance with its
terms, by Certificateholders whose Certificates evidence not less than 25% of
the ownership interest in the Trust as of the close of the preceding
Distribution Date);

         (c)    the entry of a decree or order by a court or agency or
supervisory authority having jurisdiction in the premises for the appointment of
a conservator, receiver or liquidator for the Seller or the Servicer, in any
insolvency, readjustment of debt, marshaling of assets and liabilities or
similar proceedings, or for the winding up or liquidation of their respective
affairs, and the continuance of any such decree or order unstayed and in effect
for a period of 60 consecutive days; or

         (d)    the consent by the Seller or the Servicer to the appointment of
a conservator or receiver or liquidator in any insolvency, readjustment of debt,
marshaling of assets and liabilities, or similar proceedings of or relating to
the Seller or the Servicer or of or relating to substantially all of their
respective property; or the Seller or the Servicer shall admit in writing its
inability to pay its debts generally as they become due, file a petition to take
advantage of any applicable insolvency or reorganization statute, make an
assignment for the benefit of its creditors or voluntarily suspend payment of
its obligations.

         SECTION 8.2.    Consequences of a Servicer Default. If a Servicer
                         ----------------------------------
Default shall occur and be continuing, either the Indenture Trustee or the
Noteholders whose Notes evidence not less than a majority of the Outstanding
Amount of the Voting Notes as of the close of the preceding Distribution Date
(or, if the Notes have been paid in full and the Indenture has been discharged
in accordance with its terms, by the Owner Trustee or the Holders of
Certificates evidencing not less than a majority of the ownership interest in
the Trust as of the close of the preceding Distribution Date) by notice then
given in writing to the Servicer and the Owner Trustee (and to the Indenture
Trustee if given by the Financial Parties) may, in addition to other rights and
remedies available in a court of law or equity to damages, injunctive relief and
specific performance, terminate all of the rights and obligations of the
Servicer under this Agreement, including the termination of all sub-

                                       32

<PAGE>

servicing agreements, without cost. On or after the receipt by the Servicer of
such written notice, all authority and power of the Servicer under this
Agreement, whether with respect to the Securities or the Receivables or
otherwise, shall pass to and be vested in the Indenture Trustee pursuant to and
under this Section 8.02. The Indenture Trustee is hereby authorized and
empowered to execute and deliver, on behalf of the 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 related documents, or otherwise. The Servicer
agrees to cooperate with either Trustee in effecting the termination of the
responsibilities and rights of the Servicer under this Agreement, including the
transfer to either Trustee for administration by it of all cash amounts that
shall at the time be held by the Servicer for deposit, or that shall have been
deposited by the Servicer in the Collection Account, the Negative Carry Account,
the Pre-Funding Account, the Reserve Account, the Note Distribution Account or
the Certificate Distribution Account or thereafter received with respect to the
Receivables that shall at that time be held by the Servicer. In addition to any
other amounts that are then payable to the Servicer under this Agreement, the
Servicer shall be entitled to receive from the successor Servicer reimbursements
for any Outstanding Monthly Advances made during the period prior to the notice
pursuant to this Section 8.02 which terminates the obligation and rights of the
Servicer under this Agreement.

         SECTION 8.3.    Indenture Trustee to Act; Appointment of Successor.
                         --------------------------------------------------
On and after the time the Servicer receives a notice of termination pursuant to
Section 8.02, the Indenture Trustee shall 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 shall be subject
to all the responsibilities, restrictions, duties and liabilities relating
thereto placed on the Servicer by the terms and provisions of this Agreement;
provided, however, that the predecessor Servicer shall remain liable for, and
--------  -------
the successor Servicer shall have no liability for, any indemnification
obligations of the Servicer arising as a result of acts, omissions or
occurrences during the period in which the predecessor Servicer was the
Servicer; and provided, further, that NFC shall remain liable for all such
              --------  -------
indemnification obligations of the Servicer without regard to whether it is
still Servicer hereunder. As compensation therefor, the Indenture Trustee shall
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 no such notice of termination had been given including, but not limited to,
the Total Servicing Fee and Supplemental Servicing Fees and shall be entitled to
Investment Earnings as set forth in Section 5.01(b)(i) hereof. Notwithstanding
the above, the Indenture Trustee may, if it shall be unwilling so to act, or
shall, if it is legally unable so to act, appoint, or petition a court of
competent jurisdiction to appoint, a successor (i) having a net worth of not
less than $100,000,000 and (ii) whose regular business includes the servicing of
medium and heavy duty truck, bus and trailer receivables, as the successor to
the Servicer under this Agreement in the assumption of all or any part of the
responsibilities, duties or liabilities of the Servicer under this Agreement. In
connection with such appointment and assumption, the Indenture Trustee may make
such arrangements for the compensation of such successor out of payments on
Receivables as it and such successor shall agree; provided, however, that no
                                                  --------  -------
such compensation shall be in excess of that permitted the Servicer under this
Agreement. The Indenture Trustee and such successor shall take such action,
consistent with this Agreement, as shall be necessary to effectuate any such
succession.

                                       33

<PAGE>

         SECTION 8.4.    Notification to Financial Parties. Upon any
                         ---------------------------------
termination of, or appointment of a successor to, the Servicer pursuant to this
Article VIII, the Indenture Trustee shall give prompt written notice thereof to
the Noteholders and the Rating Agencies and the Owner Trustee shall give prompt
written notice thereof to the Certificateholders.

         SECTION 8.5.    Waiver of Past Defaults. Noteholders whose Notes
                         -----------------------
evidence not less than a majority of the Outstanding Amount of the Voting Notes
as of the close of the preceding Distribution Date (or, if all of the Notes have
been paid in full and the Indenture has been discharged in accordance with its
terms, Holders of Certificates evidencing not less than a majority of the
ownership interest in the Trust as of the close of the preceding Distribution
Date) may, on behalf of all Financial Parties, waive any default by the Servicer
in the performance of its obligations hereunder and its consequences, except a
default in making any required deposits to or payments from any of the accounts
in accordance with this Agreement. Upon any such waiver of a past default, such
default shall cease to exist, and any Servicer Default arising therefrom shall
be deemed to have been remedied for every purpose of this Agreement. No such
waiver shall extend to any subsequent or other default or impair any right
consequent thereon.

         SECTION 8.6.    Repayment of Advances. If the identity of the
                         ---------------------
Servicer shall change, the predecessor Servicer shall be entitled to receive, to
the extent of available funds, reimbursement for Outstanding Monthly Advances
pursuant to Section 5.06 in the manner specified in Section 4.06, with respect
to all Monthly Advances made by such predecessor Servicer.

                                       34

<PAGE>

                                   ARTICLE IX

                                   TERMINATION

         SECTION 9.1.    Optional Purchase of All Receivables. On the last day
                         ------------------------------------
of any Monthly Period as of which (i) the Aggregate Receivables Balance is 10%
or less of the Aggregate Starting Receivables Balance and (ii) the Class A-1
Notes, the Class A-2 Notes and the Class A-3 Notes have been paid in full, the
Servicer shall have the option to purchase the assets of the Owner Trust Estate
other than the Designated Accounts and the Certificate Distribution Account. If
the Servicer's long term unsecured debt rating from Moody's Investors Service,
Inc. is equal to or higher than Baa3 at the time that it seeks to exercise such
option, then to exercise such option, the Servicer shall deposit in the
Collection Account an amount equal to the aggregate Administrative Purchase
Payments for the Receivables (including Liquidating Receivables), plus the
appraised value of any such other property contained in the Owner Trust Estate
(less the Liquidation Expenses to be incurred in connection with the recovery
thereof), such value to be determined by an appraiser mutually agreed upon by
the Servicer and each Trustee. If the Servicer's long term unsecured debt rating
from Moody's Investors Service, Inc. is less than Baa3 at the time that it seeks
to exercise such option, then to exercise such option, the Servicer shall
deposit in the Collection Account an amount equal to the appraised value of the
Receivables (including Liquidating Receivables), plus the appraised value of any
such other property contained in the Owner Trust Estate (less the Liquidation
Expenses to be incurred in connection with the recovery thereof), such values to
be determined by an appraiser mutually agreed upon by the Servicer and each
Trustee; provided, that such amount (when added to any funds then on deposit in
the Designated Accounts) must be at least equal to the aggregate Redemption
Price of the outstanding Notes to be redeemed with such proceeds for the
Distribution Date related to the Monthly Period in which such option is
exercised. Thereupon, the Servicer shall succeed to all interests in and to the
Owner Trust Estate (other than the Designated Accounts and the Certificate
Distribution Account).

         SECTION 9.2.    Sale of Assets; Termination.
                         ---------------------------

         (a    Upon any sale or other disposition of the assets of the Owner
Trust Estate pursuant to Article V of the Indenture (an "Event of Default
Sale"), the Servicer shall instruct the Applicable Trustee to deposit the
proceeds from such disposition after all payments and reserves therefrom have
been made or the amount specified in clause SECOND of Section 5.4(b) of the
Indenture (the "Event of Default Proceeds") in the Collection Account. On the
day preceding the Distribution Date on which the Event of Default Proceeds are
deposited in the Collection Account (or, if such proceeds are not so deposited
on the day preceding a Distribution Date, on the day preceding the Distribution
Date immediately following such deposit), the Servicer shall instruct the
Applicable Trustee to make the following deposits (after the application on the
day preceding such Distribution Date of the Available Amount and funds on
deposit in the Reserve Account pursuant to Sections 4.06 and 4.07) from the
Event of Default Proceeds and any funds remaining on deposit in the Reserve
Account (including the proceeds of any sale of investments therein as described
in the following sentence) in the following priority:

                                       35

<PAGE>

                  (i)    to the Swap Counterparty, the net amount, if any, then
         due to the Swap Counterparty under the Interest Rate Swap (exclusive of
         payments due to the Swap Counterparty in respect of an Early
         Termination Date under the Interest Rate Swap);

                  (ii)   second, to (a) the Note Distribution Account in respect
         of the Aggregate Class A Noteholders' Interest Distributable Amount and
         (b) to the Swap Counterparty in respect of any payments due to the Swap
         Counterparty in connection with any Early Termination Date of the
         Interest Rate Swap, allocated between the Note Distribution Account and
         the Swap Counterparty in proportion to the amounts owing to the Swap
         Counterparty in connection with such Early Termination Date and in
         respect of the Aggregate Class A Noteholders' Interest Distributable
         Amount;

                  (iii)  to the Note Distribution Account, any portion of the
         Aggregate Class A Noteholders' Interest Distributable Amount not
         otherwise deposited into the Note Distribution Account on the day
         preceding such Distribution Date for payment of interest on the Class A
         Notes;

                  (iv)   if such Event of Default Sale results from the
         occurrence of an Event of Default specified in Section 5.1(a), (b) or
         (c) of the Indenture, to the Note Distribution Account, an amount equal
         to the Note Principal Balance of the Class A Notes (after giving effect
         to the reduction in the Aggregate Note Principal Balance to result from
         the deposits made in the Note Distribution Account on the day preceding
         such Distribution Date and on the day preceding each prior Distribution
         Date);

                  (v)    to the Note Distribution Account, any portion of the
         Class B Noteholders' Interest Distributable Amount not otherwise
         deposited into the Note Distribution Account on the day preceding such
         Distribution Date;

                  (vi)   if such Event of Default Sale does not result from the
         circumstances specified in Section 9.02(a)(iv), to the Note
         Distribution Account, an amount equal to the Note Principal Balance of
         the Class A Notes (after giving effect to the reduction in the
         Aggregate Note Principal Balance to result from the deposits made in
         the Note Distribution Account on the day preceding such Distribution
         Date and on the day preceding each prior Distribution Date); and

                  (vii)  to the Note Distribution Account, an amount equal to
         the Note Principal Balance of the Class B Notes (after giving effect to
         the reduction therein to result from the deposits made in the Note
         Distribution Account on the day preceding such Distribution Date and on
         the day preceding each prior Distribution Date).

Subject to Section 5.01(b), any investments on deposit in the Reserve Account
which shall not mature on or before the day preceding such Distribution Date
shall be sold by the Indenture Trustee at such time as shall result in the
Indenture Trustee receiving the proceeds from such sale not later than the day
immediately preceding such Distribution Date. Any Event of Default Proceeds

                                       36

<PAGE>

remaining after the deposits described above shall be deposited into the
Certificate Distribution Account for distribution to the Certificateholders.

         (b)    Notice of any termination of the Trust shall be given by the
Servicer to each Trustee as soon as practicable after the Servicer has received
notice thereof.

         (c)    Following the satisfaction and discharge of the Indenture with
respect to the Notes, and the payment in full of the principal and interest on
the Notes, the Certificateholders shall succeed to the rights of the Noteholders
hereunder and the Owner Trustee shall succeed to the rights of, and assume the
obligations of, the Indenture Trustee pursuant to this Agreement (subject to the
continuing obligations of the Indenture Trustee set forth in Section 4.4 of the
Indenture).

         (d)    After payment to each Trustee, the Swap Counterparty, the
Noteholders and the Servicer of all amounts required to be paid under this
Agreement, the Interest Rate Swap, and the Indenture, any amounts on deposit in
the Reserve Account and the Collection Account (after all other distributions
required to be made from such accounts have been made) shall be deposited into
the Certificate Distribution Account for distribution to the Certificateholders
and any other assets remaining in the Owner Trust Estate shall be distributed to
the Certificate Distribution Account for distribution to the Certificateholders.

                                    ARTICLE X
                            MISCELLANEOUS PROVISIONS

         SECTION 10.1.     Amendment.
                           ---------

         (a)    This Agreement may be amended by the Seller, the Servicer and
the Owner Trustee with the consent of the Indenture Trustee, but without the
consent of any of the Financial Parties, (i) to cure any ambiguity, (ii) to
correct or supplement any provision in this Agreement that may be defective or
inconsistent with any other provision in this Agreement or any other Basic
Document, (iii) to add or supplement any credit enhancement for the benefit of
the Noteholders of any class or the Certificateholders provided that if any such
addition shall affect any class of Noteholders or the Certificateholders
differently than any other class of Noteholders or the Certificateholders,
respectively, then such addition shall not, as evidenced by an Opinion of
Counsel, adversely affect in any material respect the interests of any class of
Noteholders or the Certificateholders, (iv) add to the covenants, restrictions
or obligations of the Seller, the Servicer, or either Trustee or (v) add, change
or eliminate any other provision of this Agreement in any manner that shall not,
as evidenced by an Opinion of Counsel, adversely affect in any material respect
the interests of the Financial Parties.

         (b)    This Agreement may also be amended from time to time by the
Seller, the Servicer and the Owner Trustee with the consent of the Indenture
Trustee, the consent of Noteholders whose Notes evidence not less than a
majority of the Outstanding Amount of the Voting Notes as of the close of the
preceding Distribution Date and the consent of Certificateholders whose
Certificates evidence not less than a majority of the ownership interest in the
Trust as of the close of the

                                       37

<PAGE>

preceding Distribution Date (which consents, whether given pursuant to this
Section 10.01 or pursuant to any other provision of this Agreement, shall be
conclusive and binding on such Person and on all future holders of such Notes or
Certificates and of any Notes or Certificates issued upon the transfer thereof
or in exchange thereof or in lieu thereof whether or not notation of such
consent is made upon the Notes or Certificates) 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 Financial
Parties; provided, however, that no such amendment shall (i)(a) increase or
         --------  -------
reduce in any manner the amount of, or accelerate or delay the timing of,
collections of payments on Receivables or distributions that shall be required
to be made on any Security, the Interest Rate for any class of Notes or the
Specified Reserve Account Balance or (b) reduce the aforesaid percentage
required to consent to any such amendment, without the consent of the holders of
all Securities then outstanding or (ii) amend any provision of this Agreement
(including Section 10.06) which requires actions taken under such provision to
have the consent of Noteholders whose Notes evidence greater than a majority of
the Outstanding Amount of the Voting Notes as of the preceding Distribution Date
or of the Holders of Certificates evidencing greater than a majority of the
ownership interest in the Trust as of the preceding Distribution Date, in each
case without the consent of the Indenture Trustee and the numbers of Financial
Parties described in such Section.

         (c)    Prior to the execution of any such amendment or consent, the
Indenture Trustee shall furnish written notification to the Rating Agencies of
the substance of such amendment or consent as provided to the Indenture Trustee.

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

         (e)    It shall not be necessary for the consent of Financial Parties
pursuant to subsection 10.01(b) to approve the particular form of any proposed
amendment or consent, but it shall be sufficient if such consent shall approve
the substance thereof. The manner of obtaining such consents (and any other
consents of Financial Parties provided for in this Agreement) and of evidencing
the authorization of the execution thereof by Financial Parties shall be subject
to such reasonable requirements as either Trustee may prescribe, including the
establishment of record dates pursuant to paragraph number 3 of the Note
Depository Agreement.

         (f)    Prior to the execution of any amendment to this Agreement, each
Trustee shall be entitled to receive and rely upon the Opinion of Counsel
referred to in subsection 10.02(i) and 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. Each Trustee may, but shall not be obligated to, enter into
any such amendment which affects such Trustee's own rights, duties or immunities
under this Agreement or otherwise.

                                       38

<PAGE>

         (g)    Each of NFC and the Seller agrees that such Person shall not
amend or agree to any amendment of the Purchase Agreement unless such amendment
would be permissible under the terms of this Section 10.01 as if this Section
10.01 were contained in the Purchase Agreement.

         (h)    Notwithstanding any other provision of this Agreement, if the
consent of the Swap Counterparty is required pursuant to the Swap Counterparty
Rights Agreement to amend this Agreement, any such purported amendment shall be
null and void ab initio unless the Swap Counterparty consents in writing to such
amendment.

                SECTION 10.2.   Protection of Title to Owner Trust Estate.
                                -----------------------------------------

         (a)    The Seller or the Servicer or both shall execute and file such
financing statements and cause to be executed and filed such continuation and
other 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 Financial
Parties and the Owner Trustee under this Agreement in the Receivables and the
Indenture Trustee's interest in the Receivables under the Indenture. The Seller
or the Servicer or both shall deliver (or cause to be delivered) to the Owner
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 Seller nor the Servicer shall change its name,
identity or corporate structure in any manner that would, could or might make
any financing statement or continuation statement filed in accordance with
paragraph (a) above seriously misleading within the meaning of Section 9-503(a)
of the UCC, unless it shall have given each Trustee at least 60 days prior
written notice thereof.

         (c)    Each of the Seller and the Servicer shall give each Trustee at
least 60 days prior written notice of any relocation of its principal executive
office or change in its jurisdiction of formation if, as a result of such
relocation or change, the applicable provisions of the UCC would require the
filing of any amendment of any previously filed financing or continuation
statement or of any new financing statement. The Servicer shall at all times
maintain each office from which it services Receivables and its principal
executive office within the United States of America.

         (d)    The Servicer shall 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 extensions of
any scheduled payments made not less than 45 days prior thereto, 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, the Note Distribution Account and the Certificate Distribution Account.

         (e)    The Servicer shall maintain its computer systems so that, from
and after the time of sale under this Agreement of the Receivables to the Owner
Trustee, the Servicer's master computer records (including any back-up archives)
that refer to any Receivable indicate clearly that the Receivable is owned by
the Owner Trustee. Indication of the Owner Trustee's ownership of a

                                       39

<PAGE>

Receivable shall be deleted from or modified on the Servicer's computer systems
when, and only when, the Receivable has been paid in full or repurchased by the
Seller or purchased by the Servicer.

         (f)    If at any time the Seller or the Servicer proposes to sell,
grant a security interest in, or otherwise transfer any interest in medium and
heavy duty truck, bus and trailer receivables to any prospective purchaser,
lender or other transferee, the Servicer shall give to such prospective
purchaser, lender or other transferee computer tapes, records or print-outs
(including any restored from back-up 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 Owner Trustee unless such Receivable has been paid in
full or repurchased by the Seller or purchased by the Servicer.

         (g)    The Servicer shall permit each Trustee and their respective
agents at any time to inspect, audit and make copies of and abstracts from the
Servicer's records regarding any Receivables then or previously included in the
Owner Trust Estate.

         (h)    The Servicer shall furnish to each Trustee at any time upon
request a list of all Receivables then held as part of the Owner Trust Estate,
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 Owner Trust Estate. Upon request, the Servicer
shall furnish a copy of any such list to the Seller. Each Trustee and the Seller
shall hold any such list and the Schedule of Receivables for examination by
                                 -----------------------
interested parties during normal business hours at their respective offices
located at the addresses set forth in Section 10.03.

         (i)    The Servicer shall deliver to each Trustee promptly after the
execution and delivery of this Agreement and of each amendment thereto, an
Opinion of Counsel either (a) stating that, in the opinion of such counsel, all
financing statements and continuation statements have been executed and filed
that are necessary fully to preserve and protect the interest of each 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) stating that, in the
opinion of such counsel, no such action is necessary to preserve and protect
such interest.

         (j)    To the extent required by law, the Seller shall cause the Notes
to be registered with the Securities and Exchange Commission pursuant to Section
12(b) or Section 12(g) of the Exchange Act within the time periods specified in
such sections.

         SECTION 10.3.   Notices. All demands, notices and communications upon
                         -------
or to the Seller, the Servicer, either Trustee or the Rating Agencies under this
Agreement shall be delivered as specified in Appendix B hereto.
                                             ----------

         SECTION 10.4.   Governing Law.  All questions concerning the
                         -------------
construction, validity and interpretation of this Agreement shall be governed by
and construed and enforced in accordance with the internal laws of the State of
Illinois, without giving effect to any choice of law or conflict provision or
rule (whether of the State of Illinois or any other jurisdiction) that would
cause the application of the laws of any jurisdiction other than the State of
Illinois;

                                       40

<PAGE>

provided, however that (i) the duties and immunities of the Owner Trustee
hereunder shall be governed by the laws of the State of Delaware and (ii) the
rights and remedies of the Indenture Trustee, and the provisions contained in
Section 5.01(b)(ii) shall be governed by the laws of the State of New York.

         SECTION 10.5.    Severability of Provisions. If any one or more of the
                          --------------------------
covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions or
terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Securities or
the rights of the holders thereof.

         SECTION 10.6.    Assignment. Notwithstanding anything to the contrary
                          ----------
contained in this Agreement, this Agreement may not be assigned by the Seller
without the prior written consent of Noteholders whose Notes evidence not less
than 66% of the Outstanding Amount of the Voting Notes as of the close of the
preceding Distribution Date and of Holders of Certificates evidencing not less
than 66% of the ownership interest in the Trust as of the close of the preceding
Distribution Date. The Seller shall provide notice of any such assignment to the
Rating Agencies.

         SECTION 10.7.    Third-Party Beneficiaries. This Agreement shall inure
                          -------------------------
to the benefit of and be binding upon the parties hereto, the Financial Parties
and the Trustees and their respective successors and permitted assigns. The Swap
Counterparty shall be a third-party beneficiary to this Agreement only to the
extent that it has any rights specified herein or rights with respect to this
Agreement specified under the Swap Counterparty Rights Agreement. Except as
otherwise provided in the Swap Counterparty Rights Agreement, Section 7.01 or in
this Article X, no other Person shall have any right or obligation hereunder.

         SECTION 10.8.    Separate Counterparts.  This Agreement may be executed
                          ---------------------
by the parties hereto in separate counterparts, each of which when so executed
and delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument.

         SECTION 10.9.    Headings and Cross-References. The various headings in
                          -----------------------------
this Agreement are included for convenience only and shall not affect the
meaning or interpretation of any provision of this Agreement.

         SECTION 10.10.   Assignment to Indenture Trustee. The Seller hereby
                          -------------------------------
acknowledges and consents to any mortgage, pledge, assignment and grant of a
security interest by the Owner Trustee on behalf of the Trust, to the Indenture
Trustee pursuant to the Indenture for the benefit of the Noteholders and (only
to the extent expressly provided therein) the Certificateholders of all right,
title and interest of the Owner Trustee in, to and under the Purchased Property
and/or the assignment of any or all of the Owner Trustee's rights and
obligations hereunder to the Indenture Trustee.

         SECTION 10.11.   No Petition  Covenants.  Notwithstanding any prior
                          ----------------------
termination of this Agreement, the Servicer and the Seller shall not, prior to
the date which is one year and one day after

                                       41

<PAGE>

the final distribution with respect to the Securities to the Note Distribution
Account or the Certificate Distribution Account, as applicable, acquiesce,
petition or otherwise invoke or cause the Owner Trustee to invoke the process of
any court or government authority for the purpose of commencing or sustaining a
case against the Trust, the Owner Trust Estate or the Owner Trustee on behalf of
the Trust, 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 Owner Trustee, on behalf of the Trust, or any
substantial part of its property, or ordering the winding up or liquidation of
the affairs of the Trust, the Owner Trust Estate or the Owner Trustee, on behalf
of the Trust.

         SECTION 10.12.    Limitation of Liability of the Trustees.
                          ---------------------------------------

         (a)     Notwithstanding anything contained herein to the contrary, this
Agreement has been acknowledged and accepted by The Bank of New York not in its
individual capacity but solely as Indenture Trustee and in no event shall The
Bank of New York have any liability for the representations, warranties,
covenants, agreements or other obligations of the Owner Trustee hereunder or in
any of the certificates, notices or agreements delivered pursuant hereto, as to
all of which recourse shall be had solely to the assets of the Owner Trust
Estate.

         (b)     Notwithstanding anything contained herein to the contrary, this
Agreement has been executed by Chase Manhattan Bank USA, National Association
not in its individual capacity but solely in its capacity as Owner Trustee of
the Trust under the Trust Agreement and in no event shall Chase Manhattan Bank
USA, National Association in its individual capacity or, except as expressly
provided in the Trust Agreement, as Owner Trustee of the Trust have any
liability for the representations, warranties, covenants, agreements or other
obligations of the Owner Trustee hereunder or in any of the certificates,
notices or agreements delivered pursuant hereto, as to all of which recourse
shall be had solely to the assets of the Owner Trust Estate. For all purposes of
this Agreement, in the performance of its duties or obligations hereunder, the
Owner Trustee shall be subject to, and entitled to the benefits of, the terms
and provisions of Article VI of the Trust Agreement.

         SECTION 10.13.    Business Day Certificate.
                          ------------------------

                 On the Closing Date (with respect to the remainder of calendar
year 2001) and thereafter, within 15 days prior to the end of each calendar year
while this Agreement remains in effect (with respect to the next succeeding
calendar year), the Servicer shall deliver to either Trustee, following receipt
of a written request by such Trustee, an Officers' Certificate specifying the
days on which banking institutions in Chicago, Illinois are authorized or
obligated by law or executive order to be closed.

                                    * * * * *

                                       42

<PAGE>

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

                              CHASE MANHATTAN BANK USA, NATIONAL
                              ASSOCIATION, not in its individual capacity BUT
                              solely as Owner Trustee on behalf of the Trust

                              By:    /s/ John J. Cashin
                              Name:  John J. Cashin
                              Title: Vice President

                              NAVISTAR FINANCIAL RETAIL RECEIVABLES
                              CORPORATION, as Seller

                              By:    /s/ Andrew J. Cederoth
                              Name:  Andrew J. Cederoth
                              Title: Vice President and Treasurer

                              NAVISTAR FINANCIAL CORPORATION, as
                              Servicer

                              By:    /s/ Andrew J. Cederoth
                              Name:  Andrew J. Cederoth
                              Title: Vice President and Treasurer

Acknowledged and Accepted:
THE BANK OF NEW YORK, not in
its individual capacity but solely as
Indenture Trustee

By:    /s/ Erwin Soriano
Name:  Erwin Soriano
Title: Assistant Treasurer

<PAGE>

                                    EXHIBIT A

                      Locations of Schedule of Receivables

                        The Schedule of Receivables is on
                            -----------------------
                             file at the offices of:

               1.   The Indenture Trustee

               2.   The Owner Trustee

               3.   Navistar Financial Corporation

               4.   Navistar Financial Retail Receivables Corporation

<PAGE>

                                    EXHIBIT B

                         Form of Initial PSA Assignment

     For value received, in accordance with the Pooling and Servicing Agreement,
dated as of November 1, 2001 (the "Pooling and Servicing Agreement"), among
Navistar Financial Corporation, a Delaware corporation ("NFC"), Navistar
Financial Retail Receivables Corporation, a Delaware corporation (the "Seller")
and Chase Manhattan Bank USA, National Association, not in its individual
capacity but solely as Owner Trustee under the Trust Agreement (the "Owner
Trustee"), the Seller does hereby sell, assign, transfer and otherwise convey
unto the Owner Trustee, without recourse, all right, title and interest of the
                        ----------------
Seller in, to and under (i) the Initial Receivables (having an aggregate
Starting Receivables Balance of $292,329,093.98) and all monies paid thereon
(including Liquidation Proceeds) and due thereunder on and after the Initial
Cutoff Date; (ii) the security interests in the Financed Vehicles granted by
Obligors pursuant to the Initial Receivables and, to the extent permitted by
law, any accessions thereto which are financed by NFC; (iii) the benefits of any
lease assignments with respect to the related Financed Vehicles; (iv) any
proceeds from any Insurance Policies with respect to the Initial Receivables;
(v) any proceeds from Dealer Liability with respect to the Initial Receivables,
proceeds from any International Purchase Obligations with respect to the Initial
Receivables (subject to the limitations set forth in Section 2.04 of the Pooling
and Servicing Agreement) and proceeds from any Guaranties of Initial
Receivables; (vi) the Purchase Agreement, the assignment pursuant to Section
2.01 of the Purchase Agreement with respect to the Initial Receivables and the
Custodian Agreement, including the right of the Seller to cause NFC to perform
its obligations thereunder (including the obligation to repurchase Initial
Receivables under certain circumstances) and (vii) any proceeds of the property
described in clauses (i), (ii), (iii) and (vi) above.

     The foregoing sale does not constitute and is not intended to result in any
assumption by the Owner Trustee of any obligation of the undersigned to the
Obligors, Dealers, insurers or any other Person in connection with the Initial
Receivables, the agreements with Dealers, any Insurance Policies or any
agreement or instrument relating to any of them.

     This Initial PSA Assignment is made pursuant to and upon the
representations, warranties and agreements on the part of the undersigned
contained in the Pooling and Servicing Agreement and is to be governed by the
Pooling and Servicing Agreement.

     Capitalized terms used herein and not otherwise defined shall have the
meaning assigned to them in the Pooling and Servicing Agreement.

                                    * * * * *

<PAGE>

         IN WITNESS WHEREOF, the undersigned has caused this Initial PSA
Assignment to be duly executed as of November 1, 2001.

                                        NAVISTAR FINANCIAL RETAIL RECEIVABLES
                                        CORPORATION

                                        By:
                                        Name:  Andrew J. Cederoth
                                        Title: Vice President and Treasurer

                                       2

<PAGE>

                                    EXHIBIT C

                   Form of Subsequent Transfer PSA Assignment

     For value received, in accordance with the Pooling and Servicing Agreement,
dated as of November 1, 2001 (the "Pooling and Servicing Agreement"), among
Navistar Financial Corporation, a Delaware corporation ("NFC"), Navistar
Financial Retail Receivables Corporation, a Delaware corporation (the "Seller"),
and Chase Manhattan Bank USA, National Association, not in its individual
capacity but solely as Owner Trustee under the Trust Agreement (the "Owner
Trustee"), the Seller does hereby sell, assign, transfer and otherwise convey
unto the Owner Trustee, without recourse, all right, title and interest of the
                        ----------------
Seller in, to and under (i) the Subsequent Receivables, having an aggregate
Receivable Balance equal to $__________________, set forth on the schedule
hereto (which shall supplement the Schedule of Receivables) and all monies paid
                                   -----------------------
thereon (including Liquidation Proceeds) and due thereunder on and after
__________, 200_ (the "Subsequent Cutoff Date"); (ii) the security interests in
the Financed Vehicles granted by Obligors pursuant to such Subsequent
Receivables and, to the extent permitted by law, any accessions thereto which
are financed by NFC; (iii) the benefits of any lease assignments with respect to
the related Financed Vehicles; (iv) any proceeds from any Insurance Policies
with respect to such Subsequent Receivables; (v) any proceeds from Dealer
Liability with respect to such Subsequent Receivables, proceeds from any
International Purchase Obligations with respect to such Subsequent Receivables
(subject to the limitations set forth in Section 2.04 of the Pooling and
Servicing Agreement) and proceeds from any Guaranties of such Subsequent
Receivables; (vi) the Purchase Agreement, the assignment pursuant to Section
2.01 of the Purchase Agreement with respect to such Subsequent Receivables and
the Custodian Agreement, including the right of the Seller to cause NFC to
perform its obligations thereunder (including the obligation to repurchase
Subsequent Receivables under certain circumstances) and (vii) any proceeds of
the property described in clauses (i), (ii), (iii) and (vi) above.

     The foregoing sale does not constitute and is not intended to result in any
assumption by the Owner Trustee of any obligation of the undersigned to the
Obligors, Dealers, insurers or any other Person in connection with the
Subsequent Receivables assigned hereby, the agreements with Dealers, any
Insurance Policies or any agreement or instrument relating to any of them.

     This Subsequent Transfer PSA Assignment is made pursuant to and upon the
representations, warranties and agreements on the part of the undersigned
contained in the Pooling and Servicing Agreement and is to be governed by the
Pooling and Servicing Agreement.

     Capitalized terms used herein and not otherwise defined shall have the
meaning assigned to them in the Pooling and Servicing Agreement.

                                    * * * * *

<PAGE>

     IN WITNESS WHEREOF, the undersigned has caused this Subsequent Transfer PSA
Assignment to be duly executed as of __________________, 200_.

                                    NAVISTAR FINANCIAL RETAIL RECEIVABLES
                                    CORPORATION

                                    By:
                                    Name:
                                    Title:

<PAGE>

                                   APPENDIX A

                              PART I - DEFINITIONS

     All terms defined in this Appendix shall have the defined meanings when
used in the Basic Documents, unless otherwise defined therein.

     Accountants' Report: The report described in Section 4.02 of the Pooling
     -------------------
and Servicing Agreement.

     Accounting Date: With respect to a Distribution Date, the last day of the
     ---------------
related Monthly Period, or, with respect to any initial Distribution Date that
occurs in the same calendar month as the Closing Date, at the close of business
on the Closing Date.

     Accrual Period: The period from and including the most recent Distribution
     --------------
Date to but excluding the next Distribution Date.

     Act: An Act as specified in Section 11.3(a) of the Indenture.
     ---

     Actual Payment: With respect to a Distribution Date and to a Receivable,
     --------------
all payments received by the Servicer from or for the account of the Obligor
during the related Monthly Period (and, in the case of the first Distribution
Date occurring after the date such Receivable is transferred to the Owner
Trustee, all payments received by the Servicer from or for the account of the
Obligor on or after the applicable Cutoff Date) except for any Overdue Payments
or Supplemental Servicing Fees.

     Administration Agreement: That certain Administration Agreement, dated as
     ------------------------
of November 1, 2001 among NFC, as Administrator, Chase Manhattan Bank USA,
National Association, as Owner Trustee, and the Indenture Trustee, as amended
and supplemented from time to time.

     Administrative Purchase Payment: With respect to a Distribution Date and to
     -------------------------------
an Administrative Receivable purchased as of the related Accounting Date, a
release of all claims for reimbursement of Monthly Advances made on such
Administrative Receivable plus a payment equal to the sum of (i) the sum of the
Scheduled Payments on such Administrative Receivable due after the Accounting
Date minus the Rebate, (ii) any reimbursement made pursuant to the last sentence
of Section 5.06 of the Pooling and Servicing Agreement with respect to such
Receivable, and (iii) all past due Scheduled Payments with respect to which a
Monthly Advance has not been made.

     Administrative Receivable: A Receivable which the Servicer is required to
     -------------------------
purchase as of an Accounting Date pursuant to Section 3.08 of the Pooling and
Servicing Agreement or which the Servicer has elected to purchase as of an
Accounting Date pursuant to Section 9.01 of the Pooling and Servicing Agreement.

     Administrator: NFC or any successor Administrator under the Administration
     -------------
Agreement.

<PAGE>

     Affiliate: With respect to any specified Person, any other Person
     ---------
controlling, controlled by or under common control with such specified Person.
For the purposes of this definition, "control" when used with respect to any
specified 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.

     Agency Office: The office of the Owner Trustee maintained pursuant Section
     -------------
3.2 of the Indenture.

     Aggregate Losses: With respect to a Monthly Period, the sum of (i) the
     ----------------
aggregate of the Receivable Balances of all Receivables newly designated during
such Monthly Period as Liquidating Receivables, plus (ii) the aggregate
principal portion of Scheduled Payments due but not received with respect to all
such Receivables prior to the date any such Receivable was designated a
Liquidating Receivable minus (iii) Liquidation Proceeds collected during such
Monthly Period with respect to all Liquidating Receivables.

     Aggregate Class A Noteholders' Interest Distributable Amount: With respect
     ------------------------------------------------------------
to any Distribution Date, the sum of the Class A Noteholders' Interest
Distributable Amounts for all classes of Class A Notes and the Class A
Noteholders' Interest Carryover Shortfall as of the preceding Distribution Date.

     Aggregate Note Principal Balance: With respect to the close of a
     ---------------------------------
Distribution Date, the sum of the Note Principal Balances for all classes of
Notes.

     Aggregate Receivables Balance: As of any date, the sum of the Receivable
     -----------------------------
Balances of all outstanding Receivables (other than Liquidating Receivables).

     Aggregate Starting Receivables Balance: As of any date of determination,
     --------------------------------------
the sum of the Starting Receivable Balances of the Initial Receivables as of the
Initial Cutoff Date, which is $292,329,093.98, plus the aggregate Starting
                                               ----
Receivable Balances (as of the related Subsequent Cutoff Date) for all
Subsequent Receivables sold to the Owner Trustee on or prior to such date of
determination.

     Annual Percentage Rate: With respect to a Receivable, the annual rate of
     ----------------------
finance charges stated in such Receivable.

     Applicable Trustee: So long as the Aggregate Note Principal Balance is
     ------------------
greater than zero and the Indenture has not been discharged in accordance with
its terms, the Indenture Trustee, and thereafter, the Owner Trustee.

     Assignment: The Initial PSA Assignment or any Subsequent Transfer PSA
     ----------
Assignment.

     Authorized Officer: With respect to the Owner Trustee, acting not in its
     ------------------
individual capacity but solely in its capacity as Owner Trustee under the Trust
Agreement, any officer of the Owner Trustee who is authorized to act for the
Owner Trustee in matters relating to the Owner Trust Estate

                                       2

<PAGE>

and who is identified on the list of Authorized Officers delivered by the Owner
Trustee to the Indenture Trustee on the Closing Date (as such list may be
modified or supplemented from time to time thereafter) and, so long as the
Administration Agreement is in effect, any Vice President or more senior officer
of the Administrator who is authorized to act for the Administrator in matters
relating to the Owner Trust Estate and to be acted upon by the Administrator
pursuant to the Administration Agreement and who is identified on the list of
Authorized Officers delivered by the Administrator to the Indenture Trustee on
the Closing Date (as such list may be modified or supplemented from time to time
thereafter).

     Available Amount: With respect to a Distribution Date, the sum of the
     -----------------
Collected Interest and the Collected Principal for such Distribution Date.

     Available Purchase Amount: As of any Subsequent Transfer Date, the excess,
     -------------------------
if any, of $500,000,000.00 over the Aggregate Starting Receivables Balance on
(and before giving effect to any transfers of Receivables on) such Subsequent
Transfer Date.

     Basic Documents: The Trust Agreement, the Purchase Agreement, each PA
     ---------------
Assignment, the Pooling and Servicing Agreement, each Assignment, the Custodian
Agreement, the Administration Agreement, the Indenture, the Interest Rate Swap,
the Swap Counterparty Rights Agreement, the Note Depository Agreement and the
other documents and certificates delivered in connection therewith.

     Basic Servicing Fee: With respect to a Monthly Period, the fee payable to
     -------------------
the Servicer for services rendered during such Monthly Period, which shall be
equal to one-twelfth of the Basic Servicing Fee Rate multiplied by the Aggregate
Receivables Balance as of the first day of such Monthly Period.

     Basic Servicing Fee Rate: 1.0% per annum.
     ------------------------

     Book-Entry Notes: A beneficial interest in the Notes, ownership and
     ----------------
transfers of which shall be made through book entries by a Clearing Agency as
described in Section 2.10 of the Indenture.

     Business Day: Any day other than a Saturday, a Sunday or any other day on
     ------------
which banking institutions in New York, New York or Chicago, Illinois may, or
are required to, remain closed.

     Certificate: Any one of the certificates executed by the Owner Trustee and
     -----------
authenticated by or on behalf of the Owner Trustee in substantially the form set
forth in Exhibit A to the Trust Agreement.
         ---------

     Certificate Distribution Account: The account designated as such,
     ----------------------------------
established and maintained pursuant to Section 5.1(a) of the Trust Agreement.

     Certificate Register: The register of Certificates specified in Section 3.4
     --------------------
of the Trust Agreement.

                                       3

<PAGE>

     Certificate Registrar: The registrar at any time of the Certificate
     ----------------------
Register, appointed pursuant to Section 3.4(a) of the Trust Agreement.

     Certificated Security: As of any date, has the meaning given to such term
     ---------------------
under the applicable UCC in effect on such date.

     Certificateholder: A Person in whose name a Certificate is registered
     -----------------
pursuant to the terms of the Trust Agreement.

     Class A Noteholders' Interest Carryover Shortfall: As of the close of any
     -------------------------------------------------
Distribution Date, the excess of the Aggregate Class A Noteholders' Interest
Distributable Amount for such Distribution Date over the amount that was
actually deposited in the Note Distribution Account on the day preceding such
current Distribution Date in respect of interest on the Class A Notes.

     Class A Noteholders' Interest Distributable Amount: (a) With respect to the
     --------------------------------------------------
Class A-1 Notes and the Class A-3 Notes and any Distribution Date, the product
of (1) the outstanding principal balance of such class of Class A Notes on the
preceding Distribution Date after giving effect to all payments of principal in
respect of such class of Class A Notes on such preceding Distribution Date (or,
in the case of the first Distribution Date, the outstanding principal balance on
the Closing Date) and (2) the product of the Interest Rate for such class of
Class A Notes for such period and a fraction, the numerator of which is the
actual number of days elapsed from the most recent Distribution Date on which
interest has been paid (or the Closing Date, in the case of the initial period)
to but excluding the current Distribution Date, and the denominator of which is
360, and (b) with respect to the Class A-2 Notes and the Class A-4 Notes and any
Distribution Date, the product of (1) the outstanding principal balance of such
class of Class A Notes on the preceding Distribution Date after giving effect to
all payments of principal in respect of such class of Class A Notes on such
preceding Distribution Date (or, in the case of the first Distribution Date, the
outstanding principal balance on the Closing Date) and (2) the product of the
Interest Rate for such class of Class A Notes and a fraction, the numerator of
which is 30 (or, in the case of the first Distribution Date, the number of days
elapsed from the Closing Date to but excluding such Distribution Date), and the
denominator of which is 360.

     Class A Notes: Collectively, the Class A-1 Notes, Class A-2 Notes, Class
     -------------
A-3 Notes and Class A-4 Notes.

     Class A-1 Notes: The Class A-1 2.44% Asset Backed Notes in the aggregate
     ---------------
principal amount of $79,638,000 issued pursuant to the Indenture.

     Class A-2 Notes: The Class A-2 2.83% Asset Backed Notes in the aggregate
     ---------------
principal amount of $131,715,000 issued pursuant to the Indenture.

     Class A-3 Notes: The Class A-3 Floating Rate Asset Backed Notes in the
     ---------------
aggregate principal amount of $179,000,000 issued pursuant to the Indenture.

     Class A-4 Notes: The Class A-4 4.37% Asset Backed Notes in the aggregate
     ---------------
principal amount of $90,897,000 issued pursuant to the Indenture.

                                       4

<PAGE>

     Class B Notes: The Class B 4.83% Asset Backed Notes in the aggregate
     -------------
principal amount of $18,750,000 issued pursuant to the Indenture.

     Class B Noteholders' Interest Carryover Shortfall: As of the close of any
     -------------------------------------------------
Distribution Date, the excess of (i) the Class B Noteholders' Interest
Distributable Amount for such Distribution Date over (ii) the amount that was
actually deposited in the Note Distribution Account on the day preceding such
current Distribution Date in respect of interest on the Class B Notes.

     Class B Noteholders' Interest Distributable Amount: With respect to any
     --------------------------------------------------
Distribution Date, the sum of (i) the Class B Noteholders' Monthly Interest
Distributable Amount for such Distribution Date and (ii) the Class B
Noteholders' Interest Carryover Shortfall as of the preceding Distribution Date.

     Class B Noteholders' Monthly Interest Distributable Amount: With respect to
     ----------------------------------------------------------
any Distribution Date, the product of (i) the outstanding principal balance of
the Class B Notes on the preceding Distribution Date after giving effect to all
payments of principal in respect of the Class B Notes on such preceding
Distribution Date (or, in the case of the first Distribution Date, the
outstanding principal balance on the Closing Date) and (ii) the product of the
Interest Rate for the Class B Notes and a fraction, the numerator of which is 30
(or, in the case of the first Distribution Date, the number of days elapsed from
the Closing Date to but excluding such Distribution Date) and the denominator of
which is 360.

     Clearing Agency: An organization registered as a "clearing agency" pursuant
     ---------------
to Section 17A of the Exchange Act.

     Clearing Agency Participant: A securities broker, dealer, bank, trust
     ---------------------------
company, clearing corporation or other financial institution or other Person for
whom from time to time a Clearing Agency effects book entry transfers and
pledges of securities deposited with the Clearing Agency.

     Closing: "Closing" as defined in Section 2.03 of the Purchase Agreement.
     -------

     Closing Date: November 1, 2001.
     ------------

     Code: The Internal Revenue Code of 1986, as amended from time to time, and
     ----
the Treasury Regulations promulgated thereunder.

     Code Collateral: Any property a security interest in which may be perfected
     ---------------
by filing under the applicable UCC.

     Collateral: The collateral specified in the Granting Clause of the
     ----------
Indenture.

     Collected Interest: With respect to any Distribution Date, the sum of the
     ------------------
following amounts with respect to the related Monthly Period, in each case
computed in accordance with the actuarial method: (i) that portion of all
collections on Receivables (other than Liquidating Receivables) allocable to
interest or Prepayment Surplus, (ii) that portion of all Liquidation Proceeds
allocable to interest in accordance with the Servicer's customary servicing
procedures, (iii) that portion of all

                                       5

<PAGE>

Monthly Advances allocable to interest and (iv) that portion of all Warranty
Payments, Administrative Purchase Payments or the Optional Purchase Proceeds
allocable to accrued interest or Prepayment Surplus; less an amount equal to the
sum of (x) all amounts received on any Receivable (other than a Liquidating
Receivable) to the extent of the aggregate Outstanding Monthly Advances of
interest with respect to such Receivable and (y) Liquidation Proceeds with
respect to a particular Receivable to the extent of the Outstanding Monthly
Advances of interest thereon.

     Collected Principal: With respect to any Distribution Date, the sum of the
     -------------------
following amounts with respect to the related Monthly Period in each case
computed in accordance with the actuarial method: (i) that portion of all
collections on Receivables (other than Liquidating Receivables) allocable to
principal, (ii) that portion of Liquidation Proceeds allocable to principal in
accordance with the Servicer's customary servicing procedures, (iii) that
portion of all Monthly Advances allocable to principal, (iv) that portion of all
Warranty Payments, Administrative Purchase Payments or the Optional Purchase
Proceeds allocable to principal, and (v) that portion of all Prepayments
allocable to principal; less an amount equal to the sum of (x) amounts received
on any Receivable (other than a Liquidating Receivable) to the extent of the
aggregate Outstanding Monthly Advances of principal with respect to such
Receivable and (y) Liquidation Proceeds with respect to a particular Receivable
to the extent of the Outstanding Monthly Advances of principal and amounts
representing reimbursement for Liquidation Expenses with respect to such
Receivables pursuant to subsection 4.06(b)(i) of the Pooling and Servicing
Agreement.

     Collection Account: The account designated as such, established and
     ------------------
maintained pursuant to Section 5.01(a)(i) of the Pooling and Servicing
Agreement.

     Corporate Trust Office: With respect to the Indenture Trustee or the Owner
     ----------------------
Trustee, the principal office at which at any particular time the corporate
trust business of the Indenture Trustee or Owner Trustee, respectively, shall be
administered, which offices at the Closing Date are located, in the case of the
Indenture Trustee, at The Bank of New York, 5 Penn Plaza, 16/th/ Floor, New
York, New York, 10001, Attn: Corporate Trust ABS Unit, and in the case of the
Owner Trustee, at Chase Manhattan Bank USA, National Association, c/o JP Morgan
Chase, 500 Stanton Christiana Road, OPS4/3rd Flr., Newark, Delaware 19713, Attn:
Institutional Trust Services.

     Custodian: NFC, as Servicer, or another custodian named from time to time
     ---------
in the Custodian Agreement.

     Custodian Agreement: The Custodian Agreement, dated as of November 1, 2001
     -------------------
between the Custodian and the Seller, as amended or supplemented from time to
time.

     Cutoff Date: With respect to an Initial Receivable, the Initial Cutoff
     -----------
Date, and with respect to a Subsequent Receivable, the related Subsequent Cutoff
Date.

     Dealer: (i) A Person with whom International has a valid dealer
     ------
sales/maintenance agreement to sell International vehicles, (ii) a Person with
whom NFC has an agreement to extend new or used truck floor plan financing terms
or (iii) a truck, bus, or trailer equipment manufacturer with whom International
has a valid agreement to sell International vehicles.

                                       6

<PAGE>

     Dealer Liability: With respect to a Receivable, all rights, claims and
     ----------------
actions of NFC against the Dealer which sold the Financed Vehicles(s) which gave
rise to such Receivable and any successor Dealer for recourse or reimbursement
of any losses, costs or expenses arising as a result of a default by the Obligor
on such Receivable.

     Default: Any occurrence that is, or with notice or the lapse of time or
     -------
both would become, an Event of Default.

     Definitive Certificates: The Certificates specified in Section 3.13 of the
     -----------------------
Trust Agreement.

     Definitive Notes: The Notes specified in Section 2.12 of the Indenture.
     ----------------

     Delinquency Percentage: With respect to a Distribution Date, the aggregate
     ----------------------
Remaining Gross Balances of all outstanding Receivables which are 61 days or
more past due as of the last day of the related Monthly Period, as determined in
accordance with the Servicer's normal practices, expressed as a percentage of
the aggregate Remaining Gross Balances of all outstanding Receivables on the
last day of such Monthly Period.

     Designated Account Property: The Designated Accounts, all amounts and
     ---------------------------
investments held from time to time in any Designated Account (whether in the
form of deposit accounts, Physical Property, book-entry securities,
uncertificated securities or otherwise), including the Reserve Account Initial
Deposit, and all proceeds of the foregoing.

     Designated Accounts: The Collection Account, the Note Distribution Account,
     -------------------
the Reserve Account, the Negative Carry Account and the Pre-Funding Account,
collectively.

     Designated Receivables: The "Designated Receivables" as defined in Section
     ----------------------
2.01 of the Purchase Agreement.

     Determination Date: The day that is two Business Days prior to the
     ------------------
Distribution Date.

     Distribution Date: With respect to a Monthly Period, the 15th day of the
     -----------------
next succeeding calendar month or, if such 15th day is not a Business Day, the
next succeeding Business Day, commencing November 15, 2001.

     Distributor: A distributor of vehicles and equipment not manufactured by
     -----------
International.

     Early Termination Date: As defined in each Interest Rate Swap.
     ----------------------

     Eligible Deposit Account: Either (i) a segregated account with an Eligible
     ------------------------
Institution or (ii) a segregated trust account with the corporate trust
department of a depository institution 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, acting in its fiduciary capacity, deposited in such
account so long as any of the securities of such depository institution have a
credit rating from each Rating Agency in one of its generic rating categories
for long-term unsecured debt which signifies investment grade.

                                       7

<PAGE>

     Eligible Institution: A depository institution 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), (A) which has either (1) a
long-term unsecured debt rating of at least "AAA" from S&P and "A2" from Moody's
Investors Service, Inc. or (2) a short-term unsecured debt or certificate of
deposit rating of at least "A-1+" from S&P and "P-1" from Moody's Investors
Service, Inc., (B) whose deposits are insured by the FDIC and (C) having a
combined capital and surplus of at least $50,000,000 as set forth in its most
recent published annual report of condition.

     Eligible Investments: Book-entry securities, negotiable instruments or
     --------------------
securities represented by instruments in bearer or registered form which
evidence:

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

          (ii)  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 any domestic branch of a
     foreign bank) and subject to supervision and examination by Federal or
     State banking or depository institution authorities; provided, however,
                                                          --------  -------
     that at the time of the investment or contractual commitment to invest
     therein, the commercial paper or other short-term 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) thereof shall have a credit rating from each of the Rating
     Agencies in the highest investment category for short-term unsecured debt
     obligations or certificates of deposit granted thereby;

          (iii) commercial paper having, at the time of the investment or
     contractual commitment to invest therein, a rating from each of the Rating
     Agencies in the highest investment category for short-term unsecured debt
     obligations or certificates of deposit granted thereby;

          (iv)  investments in money market or common trust funds having a
     rating from each of the Rating Agencies in the highest investment category
     for short-term unsecured debt obligations or certificates of deposit
     granted thereby (including funds for which the Indenture Trustee or the
     Owner Trustee or any of their respective affiliates is investment manager
     or advisor, so long as such fund shall have such rating);

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

          (vi)  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) a depository institution or trust company
     (acting as principal) described in clause (ii) or (B) a depository
     institution or trust company the deposits of which are insured by FDIC or
     the counterparty for which has a rating from each of the Rating Agencies in
     the highest investment category for short-term unsecured debt

                                       8

<PAGE>

     obligations, the collateral for which is held by a custodial bank for the
     benefit of the Owner Trustee or the Indenture Trustee, is marked to market
     daily and is maintained in an amount that exceeds the amount of such
     repurchase obligation, and which requires liquidation of the collateral
     immediately upon the amount of such collateral being less than the amount
     of such repurchase obligation (unless the counterparty immediately
     satisfies the repurchase obligation upon being notified of such shortfall);

          (vii)  commercial paper master notes having, at the time of the
     investment or contractual commitment to invest therein, a rating from each
     of the Rating Agencies in the highest investment category for short-term
     unsecured debt obligations; and

          (viii) any other investment permitted by each of the Rating Agencies.

in each case, other than as permitted by the Rating Agencies, maturing not later
than the Business Day immediately preceding the next Distribution Date.

     ERISA:  The Employee Retirement Income Security Act of 1974, as amended.
     -----

     Event of Default:  An event described in Section 5.1 of the Indenture.
     ----------------

     Exchange Act:  The Securities Exchange Act of 1934, as amended.
     ------------

     Executive Officer: With respect to any corporation, the Chief Executive
     -----------------
Officer, Chief Operating Officer, Chief Financial Officer, President, Executive
Vice President, any Vice President, the Secretary or the Treasurer of such
corporation; and with respect to any partnership, any general partner thereof.

     Expenses:  The expenses described in Section 6.9 of the Trust Agreement.
     -------

     FDIC:  Federal Deposit Insurance Corporation or any successor agency.
     ----

     Final Scheduled Distribution Date:  With respect to a class of Securities,
     ---------------------------------
the date set forth below opposite such Securities:

          Class A-1 Notes:          November 15, 2002
          Class A-2 Notes:          August 16, 2004
          Class A-3 Notes:          July 17, 2006
          Class A-4 Notes:          November 17, 2008
          Class B Notes:            November 17, 2008

     Financed Vehicle: A new or used medium or heavy duty truck, bus or trailer,
     ----------------
together with any accessions thereto which were financed by NFC, securing an
Obligor's indebtedness under a Receivable. A Receivable may be secured by one or
more Financed Vehicles.

     Financial Asset: Has the meaning given such term in Revised Article 8. As
     ---------------
used herein, the Financial Asset "related to" a Security Entitlement is the
Financial Asset in which the entitlement

                                       9

<PAGE>

holder (as defined in Revised Article 8) holding such Security Entitlement has
the rights and property interest specified in Revised Article 8.

     Financial Parties: The Noteholders, the Certificateholders and, so long as
     -----------------
the Interest Rate Swap is in effect, the Swap Counterparty.

     Floating Rate Notes: The Class-A-3 Notes.
     -------------------

     Full Prepayment: With respect to a Distribution Date, that portion of an
     ---------------
Actual Payment (other than the Scheduled Payment), which with respect to (i) any
Receivable, is sufficient to prepay such Receivable in full (after application
of the Scheduled Payment), or (ii) a Receivable secured by multiple Financed
Vehicles, equals the unpaid principal amount of the Receivable relating to any
Financed Vehicle, as determined by the Servicer in accordance with its customary
servicing procedures.

     Funding Percentage: With respect to any Distribution Date, the percentage
     ------------------
derived from the fraction the numerator of which is the Pre-Funded Amount and
the denominator of which is the sum of the Aggregate Receivables Balance and the
Pre-Funded Amount, in each case, as of the last day of the related Monthly
Period.

     Funding Period: The period beginning on and including the Closing Date and
     --------------
ending on the first to occur of (a) the Distribution Date on which the amount on
deposit in the Pre-Funding Account (after giving effect to any transfers
therefrom in connection with the transfer of Subsequent Receivables to the Owner
Trustee on such Distribution Date) is not greater than $100,000, (b) the date on
which an Event of Default or a Servicer Default occurs, (c) the date on which an
Insolvency Event occurs with respect to the Seller or NFC or (d) the close of
business on the April 2002 Distribution Date.

     Further Transfer and Servicing Agreements: The Pooling and Servicing
     -----------------------------------------
Agreement, including any Assignment, the Trust Agreement and the Indenture.

     Grant: To mortgage, pledge, bargain, sell, warrant, alienate, remise,
     -----
release, convey, assign, transfer, create, and grant a lien upon and a security
interest in and right of set-off against, deposit, set over and confirm pursuant
to the Indenture. A Grant of the Collateral or of any other agreement or
instrument shall include all rights, powers and options (but none of the
obligations) of the Granting party thereunder, including the immediate and
continuing right to claim for, collect, receive and give receipt for principal
and interest payments in respect of, the Collateral and all other moneys payable
thereunder, to give and receive notices and other communications, to make
waivers or other agreements, to exercise all rights and options, to bring
Proceedings in the name of the Granting party or otherwise and generally to do
and receive anything that the Granting party is or may be entitled to do or
receive thereunder or with respect thereto.

     Guaranties: With respect to any Receivable, personal or commercial
     ----------
guaranties of an Obligor's performance with respect thereto.

                                       10

<PAGE>

     Holder: The Person in whose name a Note or Certificate is registered on the
     ------
Note Register or the Certificate Register, as applicable.

     Indemnified Parties: The Persons specified in Section 6.9 of the Trust
     -------------------
Agreement.

     Indenture: The Indenture, dated as of November 1, 2001 between the Owner
     ---------
Trustee and the Indenture Trustee, as amended and supplemented from time to
time.

     Indenture Trustee: The Bank of New York, a New York banking corporation,
     -----------------
not in its individual capacity but solely as trustee under the Indenture, or any
successor trustee under the Indenture.

     Independent: When used with respect to any specified Person, that the
     -----------
Person (i) is in fact independent of the Trust, the Owner Trustee, any other
obligor upon the Notes, the Seller and any Affiliate of any of the foregoing
Persons, (ii) does not have any direct financial interest or any material
indirect financial interest in the Trust, the Owner Trust Estate or the Owner
Trustee, any such other obligor, the Seller or any Affiliate of any of the
foregoing Persons and (iii) is not connected with the Trust, the Owner Trust
Estate or the Owner Trustee, any such other obligor, the Seller or any Affiliate
of any of the foregoing Persons as an officer, employee, promoter, underwriter,
trustee, partner, director or person performing similar functions.

     Independent Certificate: A certificate or opinion to be delivered to the
     -----------------------
Indenture Trustee under the circumstances described in, and otherwise complying
with, the applicable requirements of Section 11.1 of the Indenture, made by an
Independent appraiser or other expert appointed by an Issuer Order and approved
by the Indenture Trustee in the exercise of reasonable care, and such opinion or
certificate shall state that the signer has read the definition of "Independent"
in the Indenture and that the signer is Independent within the meaning thereof.

     Indirect Participant: A securities broker, dealer, bank, trust company or
     --------------------
other Person that clears through or maintains a custodial relationship with a
Clearing Agency Participant, either directly or indirectly.

     Initial Cutoff Date: October 1, 2001.
     -------------------

     Initial PA Assignment: As defined in Section 2.01 of the Pooling and
     ---------------------
Servicing Agreement.

     Initial PSA Assignment: As defined in Section 2.01 of the Pooling and
     ----------------------
Servicing Agreement.

     Initial Receivables: Receivables transferred to the Owner Trustee on the
     -------------------
Closing Date as set forth on the Schedule of Receivables as of the Closing Date.

     Insolvency Event: With respect to a specified Person, (i) the entry of a
     ----------------
decree or order by a court, agency or supervisory authority having jurisdiction
in the premises for the appointment of a conservator, receiver or liquidator for
such Person, in any insolvency, readjustment of debt, marshaling of assets and
liabilities or similar proceedings, or for the winding-up or liquidation of such
Person's affairs, and the continuance of any such decree or order unstayed and
in effect for a

                                       11

<PAGE>

period of 60 consecutive days; (ii) the consent by such Person to the
appointment of a conservator, receiver or liquidator in any insolvency,
readjustment of debt, marshaling of assets and liabilities or similar
proceedings of or relating to such Person or of or relating to substantially all
of such Person's property, or (iii) such Person shall admit in writing its
inability to pay its debts generally as they become due, file a petition to take
advantage of any applicable insolvency or reorganization statute, make an
assignment for the benefit of its creditors or voluntarily suspend payment of
its obligations.

     Insurance Policy: With respect to a Receivable, an insurance policy
     ----------------
covering physical damage, credit life, credit disability, theft, mechanical
breakdown or similar event to each Financed Vehicle securing such Receivable.

     Insurance Proceeds: With respect to any Receivable, proceeds of any
     ------------------
Insurance Policy with respect to such Receivable.

     Interest Rate: With respect to the Class A-1 Notes, 2.44% per annum, with
     -------------
respect to the Class A-2 Notes, 2.83% per annum, with respect to the Class A-3
Notes, One-Month LIBOR plus 0.25% per annum, with respect to the Class A-4
Notes, 4.37% per annum and with respect to the Class B Notes, 4.83% per annum.

     Interest Rate Swap: The interest rate swap agreement, including all
     ------------------
schedules and confirmations related thereto, between the Trust and the Swap
Counterparty, in effect on the Closing Date, as the same may be amended,
supplemented, renewed, extended or replaced from time to time.

     Interested Parties: The Owner Trustee and each other party identified or
     ------------------
described in the Purchase Agreement or the Further Transfer and Servicing
Agreements as having an interest as owner, trustee, secured party, Swap
Counterparty or Securityholder with respect to the Purchased Property.

     International: International Truck and Engine Corporation, a Delaware
     -------------
corporation, and its successors.

     International Purchase Obligations: Certain obligations of International,
     ----------------------------------
subject to limitations, to purchase Financed Vehicles securing Liquidating
Receivables pursuant to Article VI, "NFC/International Retail Repossession
Purchase and Remarketing Agreement" and other provisions of the Master
Intercompany Agreement by and between NFC and International dated as of April
26, 1993, as such Master Intercompany Agreement may be amended, supplemented,
restated or otherwise modified.

     Investment Earnings: Investment earnings on funds deposited in the
     -------------------
Designated Accounts, net of losses and investment expenses, during the
applicable Monthly Period.

     Issuer Order and Issuer Request: A written order or request signed in the
     ------------     --------------
name of the Owner Trustee by any one of its Authorized Officers and delivered to
the Indenture Trustee.

                                       12

<PAGE>

     Lien: Any security interest, lien, charge, pledge, equity or encumbrance of
     ----
any kind other than liens for taxes not yet due and payable, mechanics' liens,
any liens that attach by operation of law, and any liens being contested by
appropriate measures.

     Liquidating Receivable: A Receivable (i) as to which the Servicer (a) has
     ----------------------
reasonably determined, in accordance with its customary servicing procedures,
that eventual payment of amounts owing on such Receivable is unlikely, or (b)
has repossessed the Financed Vehicle or all Financed Vehicles securing the
Receivable or (ii) as to which any related Scheduled Payment is at least 210
days overdue.

     Liquidation Expenses: With respect to a Liquidating Receivable, an amount
     --------------------
not to exceed $750 (or such greater amount as the Servicer determines necessary
in accordance with its customary procedures to refurbish and dispose of a
repossessed Financed Vehicle) as an allowance for amounts charged to the account
of the Obligor, in keeping with the Servicer's customary procedures, for
repossession, refurbishment and disposition of the Financed Vehicle including
out-of-pocket costs related to the liquidation.

     Liquidation Proceeds: With respect to a Liquidating Receivable, all amounts
     --------------------
realized with respect to such Receivables, including benefits of any lease
assignments, Insurance Proceeds, proceeds from any Dealer Liability, proceeds
from any International Purchase Obligations and proceeds from any Guaranties,
net of amounts that are required to be refunded to the Obligor on such
Receivable.

     London Business Day: Any day on which dealings in deposits in United States
     -------------------
dollars are transacted in the London interbank market.

     Materiality Opinion: A written opinion of Mayer, Brown & Platt or another
     -------------------
nationally recognized law firm experienced in securitization matters reasonably
acceptable to the Swap Counterparty, addressed to the Swap Counterparty and in
form and substance reasonably satisfactory to the Swap Counterparty.

     Maximum Negative Carry Amount: With respect to the Closing Date and any
     -----------------------------
Distribution Date, the product of (i) the excess of (a) the weighted average of
the Interest Rates on the Notes, or with respect to the Class A-3 Notes, 3.492%,
as of such date over (b) 1.75%, multiplied by (ii) the amount on deposit in the
Pre-Funding Account on such date multiplied by (iii) the fraction of a year
represented by the number of days from such date until the end of the Funding
Period (calculated on the basis of a 360-day year of twelve 30-day months).

     Monthly Advance: The amount, as of an Accounting Date, which the Servicer
     ---------------
is required to advance on the respective Receivable pursuant to Section 5.06 of
the Pooling and Servicing Agreement.

     Monthly Period: With respect to a Determination Date, a Record Date and a
     --------------
Distribution Date, the calendar month preceding the month in which such date
occurs. With respect to an Accounting Date, the calendar month in which such
Accounting Date occurs.

                                       13

<PAGE>

     Negative Carry Account: The account designated as such, established and
     ----------------------
maintained pursuant to Section 5.01(a)(v) of the Pooling and Servicing
Agreement.

     Negative Carry Account Initial Deposit: Has the meaning set forth in
     --------------------------------------
Section 5.03(a) of the Pooling and Servicing Agreement.

     Negative Carry Account Property: As defined in the Granting Clause of the
     -------------------------------
Indenture.

     Negative Carry Amount: With respect to any Distribution Date, the excess
     ---------------------
(if any) of (i) the product of (a) the sum of the Aggregate Class A Noteholders'
Interest Distributable Amount and the Class B Noteholders' Interest
Distributable Amount for such Distribution Date multiplied by (b) the Funding
Percentage for such Distribution Date over (ii) the Investment Earnings on
amounts in the Pre-Funding Account during the related Monthly Period.

     New York UCC: The UCC as in effect in the State of New York.
     ------------

     NIC: Navistar International Corporation, a Delaware corporation, and its
     ---
successors.

     NFC: Navistar Financial Corporation, a Delaware corporation, and its
     ---
successors.

     NFRRC: Navistar Financial Retail Receivables Corporation, a Delaware
     -----
corporation, and its successors.

     Noteholders: Holders of record of the Notes pursuant to the Indenture and,
     -----------
with respect to any class of Notes, holders of record of such class of Notes
pursuant to the Indenture.

     Noteholders' Prepayment Premium: With respect to (i) the Class A-1 Notes,
     -------------------------------
an amount equal to the excess, if any, discounted as described below, of (a) the
amount of interest that would have accrued on the portion of the remaining
Pre-Funded Amount to be paid to the Noteholders of the Class A-1 Notes pursuant
to Section 8.2(c)(ii) of the Indenture (the "Class A-1 Note Prepayment Amount")
at the Interest Rate of such class during the period commencing on and including
the Distribution Date on which such Class A-1 Note Prepayment Amount is required
to be paid to but excluding February 15, 2002, over (b) the amount of interest
that would have accrued on such Class A-1 Note Prepayment Amount over the same
period at a per annum rate of interest equal to the bond equivalent yield to
maturity on the Determination Date preceding such Distribution Date on the
United States Treasury Bill due February 14, 2002 (such excess to be discounted
on a monthly basis to present value to such Distribution Date at the yield
described in clause (i)(b) above), (ii) the Class A-2 Notes, an amount equal to
the excess, if any, discounted as described below, of (a) the amount of interest
that would have accrued on the portion of the remaining Pre-Funded Amount to be
paid to the Noteholders of the Class A-2 Notes pursuant to Section 8.2(c)(ii) of
the Indenture (the "Class A-2 Note Prepayment Amount") at the Interest Rate of
such class during the period commencing on and including the Distribution Date
on which such Class A-2 Note Prepayment Amount is required to be paid to but
excluding October 15, 2002, over (b) the amount of interest that would have
accrued on such Class A-2 Note Prepayment Amount over the same period at a per
annum rate of interest equal to the bond equivalent yield to maturity on the
Determination Date preceding such Distribution Date on the 5-7/8% United States
Treasury Note due September 30, 2002 (such excess to be discounted on

                                       14

<PAGE>

a monthly basis to present value to such Distribution Date at the yield
described in clause (ii)(b) above), (iii) the Class A-4 Notes, an amount equal
to the excess, if any, discounted as described below, of (a) the amount of
interest that would have accrued on the portion of the remaining Pre-Funded
Amount to be paid to the Noteholders of the Class A-4 Notes pursuant to Section
8.2(c)(ii) of the Indenture (the "Class A-4 Note Prepayment Amount") at the
Interest Rate of such class during the period commencing on and including the
Distribution Date on which such Class A-4 Note Prepayment Amount is required to
be paid to but excluding March 15, 2005, over (b) the amount of interest that
would have accrued on such Class A-4 Note Prepayment Amount over the same period
at a per annum rate of interest equal to the bond equivalent yield to maturity
on the Determination Date preceding such Distribution Date on the 7-1/2% United
States Treasury Note due February 15, 2005 (such excess to be discounted on a
monthly basis to present value to such Distribution Date at the yield described
in clause (iii)(b) above) and (iv) the Class B Notes, an amount equal to the
excess, if any, discounted as described below, of (a) the amount of interest
that would have accrued on the portion of the remaining Pre-Funded Amount to be
paid to the Noteholders of the Class B Notes pursuant to Section 8.2(c)(ii) of
the Indenture (the "Class B Note Prepayment Amount") at the Interest Rate of
such class during the period commencing on and including the Distribution Date
on which such Class B Note Prepayment Amount is required to be paid to but
excluding February 15, 2004, over (b) the amount of interest that would have
accrued on such Class B Note Prepayment Amount over the same period at a per
annum rate of interest equal to the bond equivalent yield to maturity on the
Determination Date preceding such Distribution Date on the 4-3/4% United States
Treasury Note due February 15, 2004 (such excess to be discounted on a monthly
basis to present value to such Distribution Date at the yield described in
clause (v)(b) above).

     Noteholders' Principal Carryover Shortfall: As of the close of any
     ------------------------------------------
Distribution Date, the excess, if any, of Noteholders' Principal Distributable
Amount for such Distribution Date over the amount that was actually deposited in
the Note Distribution Account on the day preceding such Distribution Date in
respect of principal.

     Noteholders' Principal Distributable Amount: For any Distribution Date, the
     -------------------------------------------
lesser of (x) the sum of (i) the Principal Distributable Amount, (ii) the
Noteholders' Principal Carryover Shortfall for the immediately preceding
Distribution Date and (iii) on the Final Scheduled Distribution Date for a class
of Notes, the amount necessary to reduce the Note Principal Balance with respect
to such class of Notes to zero and (y) the sum of the Note Principal Balances
with respect to each outstanding class of Notes.

     Note Depository: The depositary from time to time selected by the Indenture
     ---------------
Trustee on behalf of the Trust in whose name the Notes are registered prior to
the issue of Definitive Notes. The first Note Depository shall be Cede & Co.,
the nominee of the initial Clearing Agency.

     Note Depository Agreement: The agreement, dated as of the Closing Date,
     -------------------------
among the Owner Trustee, the Indenture Trustee and The Depository Trust Company,
as the initial Clearing Agency relating to the Notes, substantially in the form
of Exhibit D to the Indenture, as the same may be amended and supplemented from
   ---------
time to time.

     Note Distribution Account: The account designated as such, established and
     -------------------------
maintained pursuant to Section 5.01(a)(ii) of the Pooling and Servicing
Agreement.

                                       15

<PAGE>

     Note Owner: With respect to a Book-Entry Note, the Person who is the
     ----------
beneficial owner of such Book-Entry Note, as reflected on the books of the
Clearing Agency, or on the books of a Person maintaining an account with such
Clearing Agency (directly as a Clearing Agency Participant or as an Indirect
Participant, in each case in accordance with the rules of such Clearing Agency).

     Note Pool Factor: With respect to any class of Notes and any Distribution
     ----------------
Date, a seven-digit decimal figure computed by the Servicer which is equal to
the Note Principal Balance for such class as of the close of such Distribution
Date divided by the initial Note Principal Balance for such class.

     Note Principal Balance: With respect to any class of Notes and any
     ----------------------
Distribution Date, the initial aggregate principal balance of such class of
Notes, reduced by all previous payments to the Noteholders of such class in
respect of principal of such Notes, other than the Noteholders' Prepayment
Premium.

     Note Register: With respect to any class of Notes, the register of such
     -------------
Notes specified in Section 2.4 of the Indenture.

     Note Registrar: The registrar at any time of the Note Register, appointed
     --------------
pursuant to Section 2.4 of the Indenture.

     Notes: Collectively, the Class A-1 Notes, the Class A-2 Notes, the Class
     -----
A-3 Notes, the Class A-4 Notes and the Class B Notes.

     Obligor: With respect to any Receivable, the purchaser or any co-purchaser
     -------
of the related Financed Vehicle or Financed Vehicles or any other Person, other
than the maker of any Guaranty, who owes payments under a Receivable.

     Officer's Certificate: A certificate signed by any Authorized Officer of
     ---------------------
the Owner Trustee, under the circumstances described in, and otherwise complying
with, the applicable requirements of Section 11.1 of the Indenture, and
delivered to the Indenture Trustee. Unless otherwise specified, any reference in
the Indenture to an officer's certificate shall be to an Officer's Certificate
of any Authorized Officer of the Owner Trustee.

     One-Month LIBOR: For any Distribution Date, the rate per annum of deposits
     ---------------
in United States dollars having a one-month maturity that appears on Telerate
Page 3750 at approximately 11:00 a.m., London time, two London Business Days
prior to the Distribution Date for the Accrual Period preceding such
Distribution Date (or, in the case of the initial Distribution Date, two London
Business Days prior to the Closing Date) (each, a "LIBOR Determination Date").
Notwithstanding the foregoing, in the event that no rate for one-month Dollar
deposits appears on Telerate Page 3750 on the applicable LIBOR Determination
Date, then One-Month LIBOR shall be the arithmetic mean (rounded upwards to the
nearest one-sixteenth of 1%) of the rates at which one-month Dollar deposits are
offered to prime banks in the London interbank market by four major banks in
that market selected by the Indenture Trustee as of the Determination Date and
time specified above. If fewer than two quotations are provided by such banks,
then One-Month LIBOR shall be the arithmetic mean (rounded upwards as above) of
the rates at which one-month loans in United States

                                       16

<PAGE>

dollars are offered to leading European banks by three major banks in New York
City selected by the Indenture Trustee as of 11:00 a.m. New York City time on
the applicable LIBOR Determination Date. If no such quotation can be obtained,
One-Month LIBOR for such Payment Period will be One-Month LIBOR for the prior
Accrual Period.

     Opinion of Counsel: A written opinion of counsel, who may, except as
     ------------------
otherwise expressly provided, be an employee of the Seller or the Servicer. In
addition, for purposes of the Indenture: (i) such counsel shall be satisfactory
to the Indenture Trustee; (ii) the opinion shall be addressed to the Indenture
Trustee as Indenture Trustee and (iii) the opinion shall comply with any
applicable requirements of Section 11.1 of the Indenture and shall be in form
and substance satisfactory to the Indenture Trustee.

     Optional Purchase Proceeds: The amount specified in the second or third
     --------------------------
sentence, as applicable, of Section 9.01 of the Pooling and Servicing Agreement.

     Outstanding: With respect to the Notes, as of the date of determination,
     -----------
all Notes theretofore authenticated and delivered under the Indenture except:

               (i) Notes theretofore canceled by the Indenture Trustee or
     delivered to the Indenture Trustee for cancellation;

               (ii)  Notes or portions thereof the payment for which money in
     the necessary amount has been theretofore deposited with the Indenture
     Trustee or any Paying Agent in trust for the Holders of such Notes;
     provided, however, that if such Notes are to be redeemed, notice of such
     --------  -------
     redemption has been duly given pursuant to the Indenture or provision
     therefor, satisfactory to the Indenture Trustee, has been made; and

               (iii) Notes in exchange for or in lieu of other Notes which have
     been authenticated and delivered pursuant to this Indenture unless proof
     satisfactory to the Indenture Trustee is presented that any such Notes are
     held by a protected purchaser;

provided, however, that in determining whether the Holders of the requisite
--------  -------
Outstanding Amount of the Voting Notes have given any request, demand,
authorization, direction, notice, consent or waiver hereunder or under any Basic
Document, Notes constituting part of the Owner Trust Estate, any other obligor
upon the Notes, the Seller or any Affiliate of any of the foregoing Persons
shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Indenture Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice, consent or waiver, only
Notes that the Indenture Trustee knows to be so owned shall be so disregarded.
Notes so owned that have been pledged in good faith may be regarded as
Outstanding if the pledgee establishes to the satisfaction of the Indenture
Trustee the pledgor's right so to act with respect to such Notes and that the
pledgee is not the Owner Trust Estate, any other obligor upon the Notes, the
Seller or any Affiliate of any of the foregoing Persons.

     Outstanding Amount: As of any date, the aggregate principal amount of all
     ------------------
Notes, or a class of Notes, as applicable, Outstanding at such date. Payment of
Noteholders' Prepayment Premium to Holders of Outstanding Notes will not reduce
the Outstanding Amount of the Notes.

                                       17

<PAGE>

     Outstanding Monthly Advances: As of an Accounting Date with respect to a
     ----------------------------
Receivable, the sum of all Monthly Advances made as of or prior to such
Accounting Date minus all payments or collections as of or prior to such
Accounting Date which are specified in Section 5.06 of the Pooling and Servicing
Agreement as reducing Outstanding Monthly Advances with respect to such
Receivable.

     Overdue Payment: With respect to a Distribution Date and to a Receivable,
     ---------------
all payments received during the related Monthly Period in excess of any
Supplemental Servicing Fees, to the extent of the Outstanding Monthly Advances
relating to such Receivable.

     Owner: For purposes of the Purchase Agreement, the Custodian Agreement and
     -----
the Pooling and Servicing Agreement, the "Owner" of a Receivable means (i) NFRRC
until the execution and delivery of the Further Transfer and Servicing
Agreements and (ii) thereafter, the Owner Trustee, on behalf of the Trust;
provided, that NFC or NFRRC, as applicable, shall be the "Owner" of any
Receivable from and after the time that such Person shall acquire such
Receivable, whether pursuant to Section 5.04 of the Purchase Agreement, Section
3.08 of the Pooling and Servicing Agreement, any other provision of the Further
Transfer and Servicing Agreements or otherwise.

     Owner Trust Estate: All right, title and interest of the Owner Trustee, on
     ------------------
behalf of the Trust in and to the property and rights assigned to the Owner
Trustee, on behalf of the Trust pursuant to Article II of the Pooling and
Servicing Agreement, all funds on deposit from time to time in the Collection
Account and the Certificate Distribution Account, the Interest Rate Swap and all
other property of the Owner Trustee, on behalf of the Trust from time to time,
including any rights of the Owner Trustee and the Trust pursuant to the Pooling
and Servicing Agreement and the Administration Agreement.

     Owner Trustee: Chase Manhattan Bank USA, National Association, a national
     -------------
bank, not in its individual capacity but solely as owner trustee under the Trust
Agreement, or any successor trustee under the Trust Agreement.

     PA Assignment: As defined in Section 2.01 of the Purchase Agreement.
     -------------

     Partial Prepayment: With respect to a Distribution Date and to any
     ------------------
Receivable, the portion of an Actual Payment in excess of the Scheduled Payment
which equals one or more future Scheduled Payments but does not constitute a
Full Prepayment and results in a Rebate in accordance with the Servicer's
customary procedures.

     Party:  A Party as defined in Section 6.01 of the Pooling and Servicing
     -----
Agreement.

     Paying Agent: With respect to the Indenture, the Indenture Trustee or any
     ------------
other Person that meets the eligibility standards for the Indenture Trustee
specified in Section 6.11 of the Indenture and is authorized by the Owner
Trustee to make the payments to and distributions from the Collection Account
and the Note Distribution Account, including payment of principal of or interest
on the Notes on behalf of the Owner Trustee. With respect to the Trust
Agreement, any paying agent or co-paying agent appointed pursuant to Section 3.9
of the Trust Agreement that meets the eligibility

                                       18

<PAGE>

standards for the Owner Trustee specified in Section 6.13 of the Trust
Agreement, and initially The Chase Manhattan Bank.

     Person: Any legal person, including any individual, corporation, limited
     ------
liability company, partnership, joint venture, association, joint stock company,
trust, unincorporated organization or government or any agency or political
subdivision thereof.

     Physical Property: Means bankers' acceptances, commercial paper, negotiable
     -----------------
certificates of deposit and other obligations that constitute "instruments"
within the meaning of Section 9-105(1)(i) of the UCC and are susceptible of
physical delivery.

     Pooling and Servicing Agreement: The Pooling and Servicing Agreement, dated
     -------------------------------
as of November 1, 2001, among NFC, the Seller and Chase Manhattan Bank USA,
National Association, as Owner Trustee, as amended and supplemented from time to
time.

     Predecessor Note: With respect to any particular Note, every previous Note
     ----------------
evidencing all or a portion of the same debt as that evidenced by such
particular Note; and, for the purpose of this definition, any Note authenticated
and delivered under Section 2.5 of the Indenture in lieu of a mutilated, lost,
destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note.

     Pre-Funding Account: The account designated as such, established and
     -------------------
maintained pursuant to Section 5.02(a) of the Pooling and Servicing Agreement.

     Pre-Funding Account Property: As defined in the Granting Clause of the
     ----------------------------
Indenture.

     Pre-Funded Amount: With respect to any Distribution Date, the amount on
     -----------------
deposit in the Pre-Funding Account.

     Pre-Funded Percentage: With respect to a class of Notes other than the
     ---------------------
Class A-3 Notes, the quotient (expressed as a percentage) of (i) the initial
principal balance of such class of Notes as of the Closing Date and (ii) the sum
of the initial principal balances of each class of Notes other than the Class
A-3 Notes as of the Closing Date.

     Prepayment: With respect to a Distribution Date and to a Receivable, the
     ----------
portion of an Actual Payment in excess of the Scheduled Payment.

     Prepayment Surplus: With respect to any Distribution Date on which a
     ------------------
Prepayment is to be applied with respect to a Receivable, that portion of such
Prepayment, net of any Rebate to the Obligor of the portion of the Scheduled
Payments attributable to unearned finance charges, which is not allocable to
principal in accordance with the actuarial method.

     Principal Distributable Amount: With respect to any Distribution Date, the
     ------------------------------
sum of: (i) the principal portion of all Scheduled Payments due with respect to
the related Monthly Period on the Receivables (other than Liquidating
Receivables), (ii) the principal portion of all Prepayments received during the
related Monthly Period (except to the extent included in (i) above) and (iii)
the

                                       19

<PAGE>

Receivable Balance of each Receivable that the Servicer purchased, the Seller
repurchased or that became a Liquidating Receivable during the related Monthly
Period (except to the extent included in (i) or (ii) above).

     Principal Payment Amount: With respect to any Distribution Date, an amount
     ------------------------
equal to the lesser of (a) the Principal Distributable Amount for such
Distribution Date and (b) the Total Available Amount over the sum of the Total
Servicing Fee and accrued and unpaid interest on the Notes due and payable on
such Distribution Date.

     Proceeding: Any suit in equity, action at law or other judicial or
     ----------
administrative proceeding.

     Program: As defined in subsection 4.02(a) of the Pooling and Servicing
     -------
Agreement.

     Purchase Agreement: The Purchase Agreement, dated as of November 1, 2001,
     ------------------
between NFC and the Seller, as amended and supplemented from time to time.

     Purchase Date: "Purchase Date" as defined in Section 2.01 of the Purchase
     -------------
Agreement.

     Purchase Price: As defined in Section 2.02 of the Purchase Agreement.
     --------------

     Purchased Property: As of any date, means all of the Designated Receivables
     ------------------
and the Related Security transferred by NFC to NFRRC pursuant to Section 2.01 of
the Purchase Agreement as of such date.

     Rating Agencies: As of any date, the nationally recognized statistical
     ---------------
rating organizations requested by the Seller to provide ratings on the Notes
which are rating the Notes on such date.

     Rating Agency Condition: With respect to any action, the condition that
     -----------------------
each Rating Agency shall have been given at least 10 days (or such shorter
period as is acceptable to each Rating Agency) prior notice thereof and that
each of the Rating Agencies shall have notified the Seller, the Servicer and the
Owner Trustee in writing that such action shall not result in a downgrade or
withdrawal of the then current rating of the Notes.

     Rebate: With respect to a given date and to a Receivable, the rebate under
     ------
such Receivable that is or would be payable to the Obligor for unearned finance
charges or any other charges that are or would be subject to a rebate to the
Obligor upon the payment of a Partial Prepayment or a Full Prepayment.

     Receivable: A Retail Note secured by one or more Financed Vehicles that is
     ----------
transferred to the Owner Trustee pursuant to the Pooling and Servicing Agreement
and all rights and obligations thereunder.

     Receivable Balance: With respect to any Receivable, as of an Accounting
     ------------------
Date, the Starting Receivable Balance thereof minus the sum of the following
amounts, in each case computed in accordance with the actuarial method: (i) that
portion of all Scheduled Payments allocated to principal due on or after the
Cutoff Date and on or prior to the Accounting Date, (ii) that portion of

                                       20

<PAGE>

all Warranty Payments or Administrative Purchase Payments allocated to
principal, (iii) that portion of all Prepayments allocated to principal, and
(iv) that portion of the following received and allocated to principal by the
Servicer: benefits of any lease assignments, proceeds from any Insurance
Policies, Liquidation Proceeds, proceeds from any Dealer Liability, proceeds
from any International Purchase Obligations and proceeds from any Guaranties.

     Receivable File: The documents listed in Section 2.03 of the Pooling and
     ----------------
Servicing Agreement pertaining to a particular Receivable.

     Record Date: (i) with respect to the Notes and with respect to any
     -----------
Distribution Date, the close of business on the day immediately preceding such
Distribution Date, or if Definitive Notes are issued, the last day of the
preceding Monthly Period; and (ii) with respect to the Certificates and with
respect to any Distribution Date, the last day of the preceding monthly period.

     Redemption Date: The Distribution Date specified by the Servicer or the
     ---------------
Owner Trustee pursuant to Section 10.1(a) or (b) of the Indenture, as
applicable.

     Redemption Price: An amount equal to the aggregate of the Outstanding
     ----------------
Amount of such Notes, together with all accrued and unpaid interest thereon as
of the Redemption Date.

     Registered Holder: The Person in whose name a Note is registered on the
     -----------------
Note Register on the applicable Record Date.

     Related Security: The "Related Security" as defined in Section 2.01 of the
     ----------------
Purchase Agreement.

     Remaining Gross Balance: With respect to any Receivable (other than a
     -----------------------
Liquidating Receivable) and as of an Accounting Date, the Starting Gross
Receivable Balance thereof minus the sum of (i) the portion of all Actual
Payments with respect to such Receivable, (ii) any Warranty Payment or
Administrative Purchase Payment with respect to any such Receivable, (iii) any
Prepayments applied to reduce the Starting Gross Receivable Balance of any such
Receivable and (iv) proceeds from any Insurance Policies with respect to such
Receivable, plus for any Receivable not classified by the Servicer as a "finance
charge - included contract," the portion of the payments specified in the
preceding clauses (i), (ii), (iii) or (iv) above allocable in accordance with
the actuarial method to finance charges; provided, however, that the Remaining
Gross Balance of any Receivable that has been designated a Liquidating
Receivable during the related Monthly Period shall equal zero.

     Repurchase Event: A Repurchase Event described in Section 5.04 of the
     ----------------
Purchase Agreement.

     Required Deposit Rating: A rating on short-term unsecured debt obligations
     -----------------------
of P-1 by Moody's Investors Service, Inc. and A-1+ by S&P. Any requirement that
short-term unsecured debt obligations have the "Required Deposit Rating" means
that such short-term unsecured debt obligations have the foregoing required
ratings from each of such rating agencies.

                                       21

<PAGE>

     Required Negative Carry Account Balance: As of any Determination Date, an
     ---------------------------------------
amount equal to the lesser of (a) the Negative Carry Account Initial Deposit
minus all previous withdrawals from the Negative Carry Account (other than
Investment Earnings, if any, withdrawn to pay the Certificateholders pursuant to
Section 5.05 of the Pooling and Servicing Agreement) and (b) the Maximum
Negative Carry Amount as of such date.

     Reserve Account: The account designated as such, established and maintained
     ---------------
pursuant to Section 4.07(a) of the Pooling and Servicing Agreement.

     Reserve Account Initial Deposit: Cash or Eligible Investments having a
     -------------------------------
value of at least $13,885,631.96, which shall be deposited into the Reserve
Account on the Closing Date pursuant to Section 4.07(a) of the Pooling and
Servicing Agreement.

     Reserve Account Subsequent Transfer Deposit: With respect to any Subsequent
     -------------------------------------------
Transfer Date, cash or Eligible Investments having a value of at least equal to
4.75% of the aggregate Starting Receivable Balance of the Subsequent Receivables
transferred to the Owner Trustee on such Subsequent Transfer Date, which shall
be deposited into the Reserve Account on such Subsequent Transfer Date, pursuant
to Section 4.07(a) of the Pooling and Servicing Agreement.

     Reserve Account Property: As defined in the Granting Clause of the
     ------------------------
Indenture.

     Responsible Officer: With respect to the Indenture Trustee or the Owner
     -------------------
Trustee, any officer within the Corporate Trust Office of such trustee,
including any Vice President, Assistant Vice President, Assistant Secretary,
Assistant Treasurer, Trust Officer or any other officer of such Trustee who
customarily performs functions similar to those performed by the persons who at
the time shall be such officers, respectively, or to whom any corporate trust
matter is referred because of such person's knowledge of and familiarity with
the particular subject and who shall have direct responsibility for the
administration of the Indenture or the Trust, as applicable, and, with respect
to the Servicer, the President, any Vice President, Assistant Vice President,
Secretary, Assistant Secretary or any other officer or assistant officer of such
Person customarily performing functions similar to those performed by any of the
above designated officers, 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.

     Retail Note: A retail loan evidenced by a note and secured by, one or more
     -----------
new or used medium or heavy duty trucks,

buses or trailers.

     Revised Article 8: Revised Article 8 (1994 Version) (and corresponding
     -----------------
amendments to Article 9) as promulgated in 1994 by the National Conference of
Commissioners on Uniform State Laws, in the form in which it has been adopted in
the State of New York.

     S&P : Standard & Poor's Ratings Services and any successor thereto.
     ---

     Schedule of Receivables: The schedule of all Receivables transferred to the
     ------------------------
Owner Trustee, annexed to the Pooling and Servicing Agreement and on file at the
locations listed on Exhibit A to
                    ---------

                                       22

<PAGE>

the Pooling and Servicing Agreement, as it may be amended from time to time in
accordance with any Subsequent Transfer PSA Assignment or the Pooling and
Servicing Agreement.

     Scheduled Payment: A payment which (i) is in the amount required under the
     -----------------
terms of a Receivable in effect as of its applicable Cutoff Date, except, in the
case of any Receivable secured by more than one Financed Vehicle, including any
changes in the terms of such Receivable resulting from a Full Prepayment with
respect to any Financed Vehicle related thereto, (ii) is payable by the Obligor
and (iii) includes finance charges equivalent to the Annual Percentage Rate.
When Scheduled Payment is used with reference to a Distribution Date after the
date such Receivable is transferred to the Trust, it means the payment which is
due in the related Monthly Period; provided, however, that in the case of the
                                   --------  -------
first Distribution Date, the Scheduled Payment shall include all such payments
due from the Obligor on or after its applicable Cutoff Date.

     Secretary of State: The Secretary of State of the State of Delaware.
     ------------------

     Securities:  The Notes and the Certificates.
     ----------

     Securities Act: The Securities Act of 1933, as amended.
     --------------

     Security Certificate: Has the meaning given such term in Section 8-102(a)
     --------------------
(16) of the New York UCC.

     Security Entitlement: Has the meaning given such term in Section
     --------------------
8-102(a)(17) of the New York UCC.

     Securityholder: Any of the Noteholders or Certificateholders.
     --------------

     Seller: The Person executing the Pooling and Servicing Agreement as the
     ------
Seller, or its successor in interest pursuant to Section 6.03 of the Pooling and
Servicing Agreement.

     Servicer: The Person executing the Pooling and Servicing Agreement as the
     --------
Servicer, or its successor in interest pursuant to Section 7.02 of the Pooling
and Servicing Agreement.

     Servicer Default: An event described in Section 8.01 of the Pooling and
     ----------------
Servicing Agreement.

     Servicer's Certificate: A certificate, completed by and executed on behalf
     -----------------------
of the Servicer, in accordance with Section 3.10 of the Pooling and Servicing
Agreement.

     Specified Reserve Account Balance: With respect to any Distribution Date,
     ---------------------------------
the lesser of (i) the Note Principal Balance for all classes of Notes as of such
Distribution Date, and (ii) the greater of:

          (a)  5.5% of the sum of the Aggregate Receivables Balance as of the
     close of business on the last day of the related Monthly Period and the
     aggregate Starting Receivables Balance of all Subsequent Receivables
     acquired by the Trust after such date and on or prior to such Distribution
     Date,

                                       23

<PAGE>

except that if on any Distribution Date (i) the product (expressed as a
------
percentage) of (A) twelve and (B) a fraction, the numerator of which is equal to
the sum of the Aggregate Losses plus Liquidation Proceeds for each of the
Monthly Periods which are the fifth, fourth and third Monthly Periods preceding
the Monthly Period in which such Distribution Date occurs, minus the sum of the
Liquidation Proceeds for the Monthly Periods which are the first, second and
third Monthly Periods preceding the Monthly Period in which such Distribution
Date occurs, and the denominator of which is the sum of the Remaining Gross
Balances of all outstanding Receivables as of the last day of each of the sixth,
fifth and fourth Monthly Periods preceding the Monthly Period in which such
Distribution Date occurs, exceeds 1.5% or (ii) the average of the Delinquency
Percentages for the preceding three months exceeds 2.0%, then the percentage of
the Aggregate Receivables Balance and of the aggregate Starting Receivables
Balance of Subsequent Receivables referred to in clause (a) above, shall be
equal to 10.0%

               ; and

          (b)  2.0% of the Aggregate Starting Receivables Balance.

     Starting Gross Receivable Balance: With respect to any Receivable as of the
     ---------------------------------
applicable Cutoff Date, the Starting Receivable Balance plus, in the case of
Receivables classified by the Servicer as "finance charge - included contracts,"
the finance charges included in the Scheduled Payments.

     Starting Receivable Balance: With respect to a Receivable, the aggregate
     ---------------------------
principal amount advanced under such Receivable toward the purchase price of the
Financed Vehicle or Financed Vehicles, including insurance premiums, service and
warranty contracts, federal excise and sales taxes and other items customarily
financed as part of a Retail Note and related costs, less payments received from
the Obligor prior to the Cutoff Date with respect to such Receivable allocable
on the basis of the actuarial method to principal.

     State: Any one of the 50 States of the United States of America or the
     -----
District of Columbia.

     Subsequent Cutoff Date: Any date designated by the Seller within the period
     ----------------------
beginning on the first day of the Monthly Period preceding the Monthly Period in
which the related Subsequent Transfer Date occurs and ending on the Subsequent
Transfer Date.

     Subsequent Receivables: The Receivables transferred from the Seller to the
     ----------------------
Owner Trustee pursuant to Section 2.02 of the Pooling and Servicing Agreement,
which shall be listed on a schedule to the related Subsequent Transfer PSA
Assignment.

     Subsequent Transfer Date: Any date during the Funding Period on which
     ------------------------
Subsequent Receivables are to be transferred to the Owner Trustee and a related
Subsequent Transfer PSA Assignment is executed and delivered to the Owner
Trustee and the Indenture Trustee pursuant to Section 2.02 of the Pooling and
Servicing Agreement.

     Subsequent Transfer PA Assignment: As defined in Section 2.01 of the
     ---------------------------------
Purchase Agreement.

                                       24

<PAGE>

     Subsequent Transfer PSA Assignment: With respect to Subsequent Receivables
     ----------------------------------
transferred to the Owner Trustee pursuant to Section 2.02 of the Pooling and
Servicing Agreement, has the meaning assigned thereto in Section 2.02(a) of the
Pooling and Servicing Agreement.

     Supplemental Servicing Fee: All late fees, prepayment charges and other
     --------------------------
administrative fees and expenses or similar charges allowed by applicable law
with respect to Receivables, collected (from whatever source) on the Receivables
during the applicable Monthly Period.

     Swap Counterparty: Bank of America, N.A., as swap counterparty under the
     -----------------
Interest Rate Swap, or any successor or replacement Swap Counterparty from time
to time under the Interest Rate Swap.

     Swap Counterparty Rights Agreement: The Swap Counterparty Rights Agreement,
     ----------------------------------
dated as of the Closing Date, among the Swap Counterparty, the Issuer, NFC, as
Servicer, Custodian, and Administrator, the Seller, the Indenture Trustee, and
the Owner Trustee, as amended and supplemented from time to time.

     Temporary Notes: The Notes specified in Section 2.3 of the Indenture.
     ---------------

     Total Available Amount: With respect to a Distribution Date, the sum of the
     ----------------------
Available Amount, all amounts deposited to the Collection Account pursuant to
Sections 4.06(b)(ii) and 4.06(b)(iii) of the Pooling and Servicing Agreement for
such Distribution Date, the net amount paid by the Swap Counterparty to the
Trust under the Interest Rate Swap (including termination payments) and the
amount of all cash and other immediately available funds in the Reserve Account
immediately prior to such date.

     Total Servicing Fee: The sum of the Basic Servicing Fee and any unpaid
     ---------------------
Basic Servicing Fees from all prior Distribution Dates.

     Transfer and Servicing Agreements: The Purchase Agreement, the PA
     ---------------------------------
Assignments, the Pooling and Servicing Agreement, the Assignments, the Trust
Agreement, the Indenture, the Administration Agreement and the Custodian
Agreement.

     Transfer Date: With respect to any Distribution Date, the Business Day
     -------------
immediately preceding such Distribution Date.

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

     Trust: Navistar Financial 2001-B Owner Trust, a Delaware common law trust
     -----
created by the Trust Agreement.

                                       25

<PAGE>

     Trust Agreement: The Trust Agreement, dated as of November 1, 2001, between
     ---------------
the Seller and the Owner Trustee, as amended and supplemented from time to time;
such agreement being the Amended and Restated Trust Agreement contemplated by
the Trust Agreement dated October 17, 2001 between the Seller and the Owner
Trustee.

     Trust Estate: All money, instruments, rights and other property that are
     ------------
subject or intended to be subject to the lien and security interest of the
Indenture for the benefit of the Noteholders (including all property and
interests Granted to the Indenture Trustee), including all proceeds thereof, and
the Reserve Account and the Reserve Account Property pledged to the Indenture
Trustee pursuant to the Indenture.

     Trust Indenture Act or TIA: The Trust Indenture Act of 1939 as in force on
     -------------------    ---
the date hereof, unless otherwise specifically provided.

     Trustees: The Owner Trustee and the Indenture Trustee.
     --------

     UCC: The Uniform Commercial Code as in effect in the relevant jurisdiction.
     ---

     Uncertificated Security: As of any date, has the meaning given to such term
     -----------------------
under the applicable UCC as in effect on such date.

     Underwriting Agreement: The Underwriting Agreement, dated October __,,
     ----------------------
2001, among Banc of America Securities LLC, as representative of the several
underwriters party thereto, the Servicer and the Seller with respect to the sale
of the Notes.

     Voting Notes: Whenever any request, demand, authorization, direction,
     ------------
notice, consent, waiver or other act of a specified percentage in Outstanding
Amount of the Notes is required to be obtained from, given by or furnished to or
filed with the Indenture Trustee, the Owner Trustee or the Rating Agencies, such
requirement shall be satisfied as to the "Voting Notes" if the specified
percentage of the Outstanding Amount of each of the following two voting classes
acts in such fashion: (a) first, the Class A Notes and the Class B Notes voting
together as a single class and (b) second, the Class A Notes voting as a single
class.

     Warranty Payment: With respect to a Distribution Date and to a Warranty
     ----------------
Receivable repurchased as of the related Accounting Date, the sum of (i) the sum
of all remaining Scheduled Payments on such Warranty Receivable due after the
Accounting Date, (ii) all past due Scheduled Payments with respect to which a
Monthly Advance has not been made, (iii) any reimbursement made pursuant to the
last sentence of Section 5.06 of the Pooling and Servicing Agreement with
respect to such Warranty Receivable, and (iv) all Outstanding Monthly Advances
made on such Warranty Receivable, minus (x) the rebate, calculated in accordance
with the actuarial method, that would be payable to the Obligor on such Warranty
Receivable were the Obligor to prepay such Receivable in full on such day and
(y) any Liquidation Proceeds (to the extent applied to reduce the Receivable
Balance of such Warranty Receivable) previously received with respect to such
Warranty Receivable.

                                       26

<PAGE>

     Warranty Purchaser: Either (i) the Seller pursuant to Section 2.06 of the
     -------------------
Pooling and Servicing Agreement or (ii) NFC pursuant to Section 5.04 of the
Purchase Agreement.

     Warranty Receivable: A Receivable which the Warranty Purchaser has become
     -------------------
obligated to repurchase pursuant to Section 2.06 of the Pooling and Servicing
Agreement or Section 5.04 of the Purchase Agreement.

                                       27

<PAGE>

                         PART II - RULES OF CONSTRUCTION

     (a) Accounting Terms. As used in this Appendix or the Basic Documents,
         ----------------
accounting terms which are not defined, and accounting terms partly defined,
herein or therein shall have the respective meanings given to them under
generally accepted accounting principles. To the extent that the definitions of
accounting terms in this Appendix or the Basic Documents are inconsistent with
the meanings of such terms under generally accepted accounting principles, the
definitions contained in this Appendix or the Basic Documents will control.

     (b) "Hereof," etc. The words "hereof," "herein" and "hereunder" and words
          ------------
of similar import when used in this Appendix or any Basic Document will refer to
this Appendix or such Basic Document as a whole and not to any particular
provision of this Appendix or such Basic Document; and Section, Schedule and
Exhibit references contained in this Appendix or any Basic Document are
references to Sections, Schedules and Exhibits in or to this Appendix or such
Basic Document unless otherwise specified. The word "or" is not exclusive.

     (c) Reference to Distribution Dates. With respect to any Distribution Date,
         -------------------------------
the "related Monthly Period," and the "related Record Date," will mean the
Monthly Period and Record Date, respectively, immediately preceding such
Distribution Date, and the relationships among Monthly Periods and Record Dates
will be correlative to the foregoing relationships.

     (d) Number and Gender. Each defined term used in this Appendix or the Basic
         -----------------
Documents has a comparable meaning when used in its plural or singular form.
Each gender-specific term used in this Appendix or the Basic Documents has a
comparable meaning whether used in a masculine, feminine or gender-neutral form.

     (e) Including. Whenever the term "including" (whether or not that term is
         ---------
followed by the phrase "but not limited to" or "without limitation" or words of
similar effect) is used in this Appendix or the Basic Documents in connection
with a listing of items within a particular classification, that listing will be
interpreted to be illustrative only and will not be interpreted as a limitation
on, or exclusive listing of, the items within that classification.

                                       28

<PAGE>

                                   APPENDIX B
                                   ----------

                         Notice Addresses and Procedures

     All requests, demands, directions, consents, waivers, notices,
authorizations and communications provided or permitted under any Basic Document
to be made upon, given or furnished to or filed with the Seller, the Servicer,
the Administrator, the Indenture Trustee, the Owner Trustee or the Rating
Agencies shall be in writing, personally delivered, sent by facsimile with a
copy to follow via first class mail or mailed by certified mail-return receipt
requested, and shall be deemed to have been duly given upon receipt:

                  (a)      in the case of the Seller, at the following address:

                           Navistar Financial Retail Receivables Corporation
                           c/o Corporation Trust Center
                           1209 Orange Street
                           Wilmington, Delaware 19801

                  with a copy to:

                           Navistar Financial Retail Receivables Corporation
                           2850 West Golf Road
                           Rolling Meadows, Illinois 60008
                           Attention: General Counsel

                  (b)      in the case of the Servicer, the Custodian or the
                           Administrator, at the following address:

                           Navistar Financial Corporation
                           2850 West Golf Road
                           Rolling Meadows, Illinois 60008
                           Attention: Treasurer

                  with a copy to:

                           Navistar Financial Corporation
                           2850 West Golf Road
                           Rolling Meadows, Illinois 60008
                           Attention: General Counsel

                  (c)      in the case of the Indenture Trustee, at its
                           Corporate Trust Office

                                       1

<PAGE>

                  (d)      in the case of the Owner Trustee, to the Owner
                           Trustee at its Corporate Trust Office, with copies
                           to:

                           Navistar Financial Retail Receivables Corporation
                           c/o Corporation Trust Center
                           1209 Orange Street
                           Wilmington, Delaware 19801

                           and:

                           Navistar Financial Retail Receivables Corporation
                           2850 West Golf Road
                           Rolling Meadows, Illinois 60008
                           Attention: General Counsel

                  The Owner Trustee shall promptly transmit any notice received
                  by it from the Noteholders to the Indenture Trustee and the
                  Indenture Trustee shall likewise promptly transmit any notice
                  received by it from the Noteholders to the Owner Trustee.

                  (e)      in the case of the Swap Counterparty, to

                           Bank of America N.A.
                           Sears Tower
                           233 South Wacker Drive, Suite 2800
                           Chicago, IL 60606
                           Attention:  Swap Operations
                           Facsimile No.: (312) 234-3166

                           With a copy to:

                           Bank of America N.A.
                           100 N. Tryon St., NC1-007-13-01
                           Charlotte, North Carolina 28255
                           Attention: Capital markets Documentation
                           Facsimile No.: (704) 386-4113

                  (f)      in the case of Moody's Investors Service, Inc., to

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

                                       2

<PAGE>

                  (g)      in the case of Standard & Poor's Ratings Services, to

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

or at such other address as shall be designated by such party in a written
notice to the other parties to this Agreement.

     Where any Basic Document provides for notice to Financial Parties of any
condition or event, such notice shall be sufficiently given (unless otherwise
herein expressly provided) if it is in writing and mailed, first-class, postage
prepaid to each Securityholder affected by such condition or event, at such
Person's address as it appears on the Note Register or Certificate Register, as
applicable, not later than the latest date, and not earlier than the earliest
date, prescribed in such Basic Document for the giving of such notice. If notice
to Financial Parties is given by mail, neither the failure to mail such notice
nor any defect in any notice so mailed to any particular Financial Party shall
affect the sufficiency of such notice with respect to other Financial Parties,
and any notice that is mailed in the manner herein provided shall conclusively
be presumed to have been duly given regardless of whether such notice is in fact
actually received.

                                       3<PAGE>

                                                                     Exhibit 4.2
________________________________________________________________________________

                 CHASE MANHATTAN BANK USA, NATIONAL ASSOCIATION
                                AS OWNER TRUSTEE

                       Class A-1 2.44% Asset Backed Notes
                       Class A-2 2.83% Asset Backed Notes
                   Class A-3 Floating Rate Asset Backed Notes
                       Class A-4 4.37% Asset Backed Notes
                        Class B 4.83% Asset Backed Notes

                         _____________________________

                                    INDENTURE

                          Dated as of November 1, 2001

                         _____________________________

                              The Bank of New York,
                         a New York banking corporation,
                                Indenture Trustee

________________________________________________________________________________

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                     <C>
ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE..................................   2
     SECTION 1.1       Definitions ...................................................   2
                       -----------
     SECTION 1.2       Incorporation by Reference of Trust Indenture Act .............   3
                       -------------------------------------------------

ARTICLE II THE NOTES .................................................................   3
     SECTION 2.1       Form ..........................................................   3
                       ----
     SECTION 2.2       Execution, Authentication and Delivery ........................   4
                       --------------------------------------
     SECTION 2.3       Temporary Notes ...............................................   5
                       ---------------
     SECTION 2.4       Registration; Registration of Transfer and Exchange of Notes ..   5
                       ------------------------------------------------------------
     SECTION 2.5       Mutilated, Destroyed, Lost or Stolen Notes ....................   6
                       ------------------------------------------
     SECTION 2.6       Persons Deemed Noteholders ....................................   7
                       --------------------------
     SECTION 2.7       Payment of Principal and Interest .............................   7
                       ---------------------------------
     SECTION 2.8       Cancellation of Notes .........................................   9
                       ---------------------
     SECTION 2.9       Release of Collateral .........................................   9
                       ---------------------
     SECTION 2.10      Book-Entry Notes ..............................................   9
                       ----------------
     SECTION 2.11      Notices to Clearing Agency ....................................  10
                       --------------------------
     SECTION 2.12      Definitive Notes ..............................................  10
                       ----------------
     SECTION 2.13      Seller as Noteholder ..........................................  11
                       --------------------
     SECTION 2.14      Tax Treatment .................................................  11
                       -------------

ARTICLE III COVENANTS ................................................................  11
     SECTION 3.1       Payment of Principal and Interest .............................  11
                       ---------------------------------
     SECTION 3.2       Maintenance of Agency Office ..................................  11
                       ----------------------------
     SECTION 3.3       Money for Payments To Be Held in Trust ........................  12
                       --------------------------------------
     SECTION 3.4       Existence .....................................................  13
                       ---------
     SECTION 3.5       Protection of Trust Estate; Acknowledgment of Pledge ..........  13
                       ----------------------------------------------------
     SECTION 3.6       Opinions as to Trust Estate ...................................  14
                       ---------------------------
     SECTION 3.7       Performance of Obligations; Servicing of Receivables ..........  15
                       ----------------------------------------------------
     SECTION 3.8       Negative Covenants ............................................  16
                       ------------------
     SECTION 3.9       Annual Statement as to Compliance .............................  16
                       ---------------------------------
     SECTION 3.10      Consolidation, Merger, etc., of Owner Trustee; Disposition of
                       -------------------------------------------------------------
                       Trust Assets ..................................................  17
                       ------------
     SECTION 3.11      Successor or Transferee .......................................  17
                       -----------------------
     SECTION 3.12      No Other Business .............................................  17
                       -----------------
     SECTION 3.13      No Borrowing ..................................................  17
                       ------------
     SECTION 3.14      Guarantees, Loans, Advances and Other Liabilities .............  18
                       -------------------------------------------------
     SECTION 3.15      Servicer's Obligations ........................................  18
                       ----------------------
     SECTION 3.16      Capital Expenditures ..........................................  18
                       --------------------
     SECTION 3.17      Removal of Administrator ......................................  18
                       ------------------------
     SECTION 3.18      Restricted Payments ...........................................  18
                       -------------------
     SECTION 3.19      Notice of Events of Default ...................................  19
                       ---------------------------
     SECTION 3.20      Further Instruments and Acts ..................................  19
                       ----------------------------
</TABLE>

                                        i

<PAGE>

<TABLE>
                                                                                          <c>
     SECTION 3.21     Indenture Trustee's Assignment of Administrative
                      ------------------------------------------------
                      Receivables and Warranty Receivables................................   19
                      ------------------------------------
     SECTION 3.22     Representations and Warranties by the Owner Trustee to the
                      ----------------------------------------------------------
                      Indenture Trustee ..................................................   19
                      -----------------

ARTICLE IV SATISFACTION AND DISCHARGE ....................................................   20
     SECTION 4.1      Satisfaction and Discharge of Indenture ............................   20
                      ---------------------------------------
     SECTION 4.2      Application of Trust Money .........................................   21
                      --------------------------
     SECTION 4.3      Repayment of Monies Held by Paying Agent ...........................   21
                      ----------------------------------------
     SECTION 4.4      Duration of Position of Indenture Trustee for Benefit of
                      --------------------------------------------------------
                      Certificateholders .................................................   21
                      ------------------

ARTICLE V DEFAULT AND REMEDIES ...........................................................   22
     SECTION 5.1      Events of Default ..................................................   22
                      -----------------
     SECTION 5.2      Acceleration of Maturity; Rescission and Annulment .................   23
                      --------------------------------------------------
     SECTION 5.3      Collection of Indebtedness and Suits for Enforcement
                      ----------------------------------------------------
                      by Indenture Trustee ...............................................   24
                      --------------------
     SECTION 5.4      Remedies; Priorities ...............................................   26
                      --------------------
     SECTION 5.5      Optional Preservation of the Trust Estate ..........................   27
                      -----------------------------------------
     SECTION 5.6      Limitation of Suits ................................................   27
                      -------------------
     SECTION 5.7      Unconditional Rights of Noteholders To Receive Principal
                      --------------------------------------------------------
                      and Interest .......................................................   28
                      ------------
     SECTION 5.8      Restoration of Rights and Remedies .................................   28
                      ----------------------------------
     SECTION 5.9      Rights and Remedies Cumulative .....................................   28
                      ------------------------------
     SECTION 5.10     Delay or Omission Not a Waiver .....................................   28
                      ------------------------------
     SECTION 5.11     Control by Noteholders .............................................   29
                      ----------------------
     SECTION 5.12     Waiver of Past Defaults ............................................   29
                      -----------------------
     SECTION 5.13     Undertaking for Costs ..............................................   30
                      ---------------------
     SECTION 5.14     Waiver of Stay or Extension Laws ...................................   30
                      --------------------------------
     SECTION 5.15     Action on Notes ....................................................   30
                      ---------------
     SECTION 5.16     Performance and Enforcement of Certain Obligations .................   31
                      --------------------------------------------------

ARTICLE VI THE INDENTURE TRUSTEE .........................................................   32
     SECTION 6.1      Duties of Indenture Trustee ........................................   32
                      ---------------------------
     SECTION 6.2      Rights of Indenture Trustee ........................................   33
                      ---------------------------
     SECTION 6.3      Indenture Trustee May Own Notes ....................................   34
                      -------------------------------
     SECTION 6.4      Indenture Trustee's Disclaimer .....................................   34
                      ------------------------------
     SECTION 6.5      Notice of Defaults .................................................   34
                      ------------------
     SECTION 6.6      Reports by Indenture Trustee to Holders ............................   34
                      ---------------------------------------
     SECTION 6.7      Compensation; Indemnity ............................................   34
                      -----------------------
     SECTION 6.8      Replacement of Indenture Trustee ...................................   35
                      --------------------------------
     SECTION 6.9      Merger or Consolidation of Indenture Trustee .......................   36
                      --------------------------------------------
     SECTION 6.10     Appointment of Co-Indenture Trustee or Separate Indenture Trustee ..   36
                      -----------------------------------------------------------------
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>                                                                                                <C>
        SECTION 6.11      Eligibility; Disqualification .................................................. 37
                          -----------------------------
        SECTION 6.12      Preferential Collection of Claims Against Owner Trustee ........................ 38
                          -------------------------------------------------------
        SECTION 6.13      Representations and Warranties of Indenture Trustee ............................ 39
                          ---------------------------------------------------
        SECTION 6.14      Indenture Trustee May Enforce Claims Without Possession of Notes                 39
                          ----------------------------------------------------------------
        SECTION 6.15      Suit for Enforcement ........................................................... 39
                          --------------------
        SECTION 6.16      Rights of Noteholders to Direct Indenture Trustee .............................. 40
                          -------------------------------------------------

ARTICLE VII NOTEHOLDERS' LISTS AND REPORTS ............................................................... 40
        SECTION 7.1       Owner Trustee To Furnish Indenture Trustee Names and Addresses
                          --------------------------------------------------------------
                          of Noteholders ................................................................. 40
                         --------------
        SECTION 7.2       Preservation of Information, Communications to Noteholders ..................... 40
                          ----------------------------------------------------------
        SECTION 7.3       Reports by Owner Trustee ....................................................... 41
                          ------------------------
        SECTION 7.4       Reports by Indenture Trustee ................................................... 41
                          ----------------------------

ARTICLE VIII ACCOUNTS, DISBURSEMENTS AND RELEASES ........................................................ 42
        SECTION 8.1       Collection of Money ............................................................ 42
                          -------------------
        SECTION 8.2       Designated Accounts; Payments .................................................. 42
                          -----------------------------
        SECTION 8.3       General Provisions Regarding Accounts .......................................... 45
                          -------------------------------------
        SECTION 8.4       Release of Trust Estate ........................................................ 45
                          -----------------------
        SECTION 8.5       Opinion of Counsel ............................................................. 46
                          ------------------

ARTICLE IX SUPPLEMENTAL INDENTURES ....................................................................... 46
        SECTION 9.1       Supplemental Indentures Without Consent of Noteholders ......................... 46
                          ------------------------------------------------------
        SECTION 9.2       Supplemental Indentures With Consent of Noteholders ............................ 48
                          ---------------------------------------------------
        SECTION 9.3       Execution of Supplemental Indentures ........................................... 49
                          ------------------------------------
        SECTION 9.4       Effect of Supplemental Indenture ............................................... 49
                          --------------------------------
        SECTION 9.5       Conformity with Trust Indenture Act ............................................ 50
                          -----------------------------------
        SECTION 9.6       Reference in Notes to Supplemental Indentures .................................. 50
                          ---------------------------------------------

ARTICLE X REDEMPTION OF NOTES ............................................................................ 50
        SECTION 10.1      Redemption ..................................................................... 50
                          ----------
        SECTION 10.2      Form of Redemption Notice ...................................................... 51
                          -------------------------
        SECTION 10.3      Notes Payable on Redemption Date ............................................... 51
                          --------------------------------

ARTICLE XI MISCELLANEOUS  ................................................................................ 52
        SECTION 11.1      Compliance Certificates and Opinions, etc. ..................................... 52
                          -----------------------------------------
        SECTION 11.2      Form of Documents Delivered to Indenture Trustee ............................... 53
                          ------------------------------------------------
        SECTION 11.3      Acts of Noteholders ............................................................ 54
                          -------------------
        SECTION 11.4      Notices, etc., to Indenture Trustee, Owner Trustee and Rating
                          -------------------------------------------------------------
                          Agencies ....................................................................... 55
                          --------
        SECTION 11.5      Notices to Noteholders; Waiver ................................................. 55
                          ------------------------------
        SECTION 11.6      Alternate Payment and Notice Provisions ........................................ 55
                          ---------------------------------------
        SECTION 11.7      Conflict with Trust Indenture Act .............................................. 56
                          ---------------------------------
</TABLE>

                                       iii

<PAGE>

SECTION 11.8      Effect of Headings and Table of Contents .............. 56
                  ----------------------------------------
SECTION 11.9      Successors and Assigns ................................ 56
                  ----------------------
SECTION 11.10     Separability .......................................... 56
                  ------------
SECTION 11.11     Benefits of Indenture ................................. 56
                  ---------------------
SECTION 11.12     Legal Holidays ........................................ 57
                  --------------
SECTION 11.13     Governing Law ......................................... 57
                  -------------
SECTION 11.14     Counterparts .......................................... 57
                  ------------
SECTION 11.15     Recording of Indenture ................................ 57
                  ----------------------
SECTION 11.16     No Recourse ........................................... 57
                  -----------
SECTION 11.17     No Petition ........................................... 58
                  -----------
SECTION 11.18     Inspection ............................................ 59
                  ----------

                                       iv

<PAGE>

Exhibit A             -        Locations of Schedule of Receivables
Exhibit B             -        Form of Class A-1 Asset Backed Note
Exhibit C             -        Form of Class A-2, Class A-4 and Class B Asset
                               Backed Note
Exhibit D                      Form of Class A-3 Floating Rate Asset Backed Note
Exhibit E             -        Form of Note Depository Agreement

                                       v

<PAGE>

                  INDENTURE, dated as of November 1, 2001 between CHASE
MANHATTAN BANK USA, NATIONAL ASSOCIATION, a national banking association, not in
its individual capacity but solely as trustee under the Trust Agreement (the
"Owner Trustee"), and THE BANK OF NEW YORK, a New York banking corporation, as
trustee and not in its individual capacity (the "Indenture Trustee").

                  Each party agrees as follows for the benefit of the other
party and for the equal and ratable benefit of the Holders of the Notes and
(only to the extent expressly provided herein) the Certificateholders:

                                 GRANTING CLAUSE

                  Chase Manhattan Bank USA, National Association, not in its
individual capacity, but solely as Owner Trustee under the Trust Agreement,
hereby grants to the Indenture Trustee on the Closing Date, as trustee for the
benefit of the Noteholders and (only to the extent expressly provided herein)
the Certificateholders, all of the Owner Trustee's right, title and interest in,
to and under (a) the Receivables listed on the Schedule of Receivables which is
                                               -----------------------
on file at the locations listed on Exhibit A hereto and all monies paid thereon
                                   ---------
(including Liquidation Proceeds) and due thereunder on and after the applicable
Cutoff Date, whether now existing or hereafter acquired and including, without
limitation, Subsequent Receivables acquired by the Owner Trustee pursuant to the
Pooling and Servicing Agreement listed on the schedules to the Subsequent
Transfer Assignments with respect to such Subsequent Receivables and all monies
due thereon on and after the applicable Cutoff Dates; (b) the security interests
in the Financed Vehicles granted by Obligors pursuant to the Receivables and,
where permitted by law, any accessions thereto which are financed by NFC; (c)
the benefits of any lease assignments with respect to the Financed Vehicles; (d)
any proceeds from any Insurance Policies with respect to the Receivables; (e)
any proceeds from Dealer Liability with respect to the Receivables, proceeds
from any International Purchase Obligations with respect to the Receivables
(subject to the limitations set forth in Section 2.04 of the Pooling and
Servicing Agreement) and proceeds of any Guaranties with respect to the
Receivables; (f) all funds on deposit from time to time in the Collection
Account and the Note Distribution Account; (g) the Pooling and Servicing
Agreement (including all rights of NFRRC under the Purchase Agreement, the
Initial PA Assignment and any Subsequent Transfer PA Assignments assigned to the
Owner Trustee pursuant to the Pooling and Servicing Agreement); (h) the Reserve
Account and all proceeds thereof (other than the Investment Earnings thereon),
including all other amounts, investments and investment property held from time
to time in the Reserve Account (whether in the form of deposit accounts,
Physical Property, book-entry securities, uncertificated securities, or
otherwise);

                                       1

<PAGE>

(i) the Reserve Account Initial Deposit with respect to the Closing Date and the
Reserve Account Subsequent Transfer Deposit with respect to each Subsequent
Transfer Date and all proceeds thereof (other than the Investment Earnings
thereon) ((h) and (i), collectively, the "Reserve Account Property"); (j) all
funds on deposit from time to time in the Pre-Funding Account and all proceeds
thereof, including all other amounts and investments held from time to time in
the Pre-Funding Account (whether in the form of deposit accounts, Physical
Property, book-entry securities, uncertificated securities or otherwise)
(collectively, the "Pre-Funding Account Property"); (k) all funds on deposit
from time to time in the Negative Carry Account and all proceeds thereof (other
than the Investment Earnings thereon), including all other amounts, investments
and investment property held from time to time in the Negative Carry Account
(whether in the form of deposit accounts, Physical Property, book-entry
securities, uncertificated securities or otherwise); (l) all rights, title and
interest of the Owner Trustee in, to and under the Interest Rate Swap and the
Swap Counterparty Rights Agreement; and (m) all present and future claims,
demands, causes and choses in action in respect of any or all of the foregoing
and all payments on or under and all proceeds of every kind and nature
whatsoever in respect of any or all of the foregoing, including all proceeds of
the conversion, voluntary or involuntary, into cash or other liquid property,
all cash proceeds, accounts, accounts receivable, notes, drafts, acceptances,
chattel paper, checks, deposit accounts, insurance proceeds, condemnation
awards, rights to payment of any and every kind and other forms of obligations
and receivables, instruments and other property which at any time constitute all
or part of or are included in the proceeds of any of the foregoing
(collectively, the "Collateral").

                  The foregoing Grant is made in trust to secure (a) first, the
payment of principal of

                                       2

<PAGE>

and interest on, and any other amounts owing in respect of, the Class A Notes,
equally and ratably without prejudice, priority or distinction, and (b)
second, the payment of principal of and interest on, and any other amounts owing
in respect of, the Class B Notes, equally and ratably without prejudice,
priority or distinction, and to secure compliance with the provisions of this
Indenture, all as provided in this Indenture. This Indenture constitutes a
security agreement under the UCC.

                  The foregoing Grant includes all rights, powers and options
(but none of the obligations, if any) of the Owner Trustee under any agreement
or instrument included in the Collateral, including the immediate and continuing
right to claim for, collect, receive and give receipt for principal and interest
payments in respect of the Receivables included in the Collateral and all other
monies payable under the Collateral, to give and receive notices and other
communications, to make waivers or other agreements, to exercise all rights and
options, to bring Proceedings in the name of the Owner Trustee or on behalf of
the Owner Trust Estate or otherwise and generally to do and receive anything
that the Owner Trustee is or may be entitled to do or receive under or with
respect to the Collateral.

                  The Indenture Trustee, as trustee on behalf of the Noteholders
and (only to the extent expressly provided herein) the Certificateholders,
acknowledges such Grant and accepts the trusts under this Indenture in
accordance with the provisions of this Indenture.

                                    ARTICLE I
                   DEFINITIONS AND INCORPORATION BY REFERENCE

                  SECTION 1.1 Definitions. Certain capitalized terms used in
                              -----------
this Indenture shall have the respective meanings assigned them in Part I of
Appendix A to the Pooling and Servicing Agreement of even date herewith among
----------
Chase Manhattan Bank USA, National Association, acting as Owner Trustee of the
Navistar Financial 2001-B Owner Trust, NFRRC and NFC (as it may be amended,
supplemented or modified from time to time, the "Pooling and Servicing
Agreement"). All references herein to "the Indenture" or "this Indenture" are to
this Indenture as it may be amended, supplemented or modified from time to time,
the exhibits hereto and the capitalized terms used herein which are defined in
such Appendix A. All references herein to Articles, Sections, subsections and
     ----------
exhibits are to Articles, Sections, subsections and exhibits contained in or
attached to this Indenture unless otherwise specified. All terms defined in this
Indenture shall have the defined meanings when used in any certificate, notice,
Note or other document made or delivered pursuant hereto unless otherwise
defined therein. The rules of construction set forth in Part II of such Appendix
                                                                        --------
A shall be applicable to this Indenture.
-
                  SECTION 1.2 Incorporation by Reference of Trust Indenture Act.
                              -------------------------------------------------
Whenever this Indenture refers to a provision of the TIA, such provision is
incorporated by reference in and made a part of this Indenture. The following
TIA terms used in this Indenture have the following meanings:

                  "Commission" means the Securities and Exchange Commission.

                  "indenture  securities" means the Notes.

                                       3

<PAGE>

                  "indenture security holder" means a Noteholder.

                  "indenture to be qualified" means this Indenture.

                  "indenture trustee" means the Indenture Trustee.

                  "obligor" on the indenture securities means the Owner Trustee
and any other obligor on the indenture securities.

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

                                    ARTICLE II
                                    THE NOTES

                  SECTION 2.1          Form.
                                       ----

                  (a) (i) The Class A-1 Notes, (ii) each of the Class A-2 Notes,
Class A-4 Notes, Class B Notes and (iii) the Class A-3 Notes, with the Indenture
Trustee's certificate of authentication, shall be substantially in the form set
forth in Exhibit B, Exhibit C, and Exhibit D, respectively, with such
         ---------  ---------      ---------
appropriate insertions, omissions, substitutions and other variations as are
required or permitted by this Indenture, and each such class may have such
letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may, consistently herewith, be determined by the
officers executing such Notes, as evidenced by their execution of the Notes. Any
portion of the text of any Note may be set forth on the reverse thereof, with an
appropriate reference thereto on the face of the Note.

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

                  (c) Each Note shall be dated the date of its authentication.
The terms of each class of Notes as provided for in Exhibit B, Exhibit C and
                                                    ---------  ---------
Exhibit D hereto are part of the terms of this Indenture.
---------

                  SECTION 2.2          Execution, Authentication and Delivery.
                                       --------------------------------------

                  (a) Each Note shall be dated the date of its authentication,
and shall be issuable as a registered Note in the minimum denomination of $1,000
and in integral multiples thereof (except, if applicable, for one Note
representing a residual portion of each class which may be issued in a different
denomination).

                  (b) The Notes  shall be  executed  on  behalf  of the  Owner
Trustee  by any of its  Authorized  Officers.The signature of any such
Authorized Officer on the Notes may be manual or

                                       4

<PAGE>

facsimile.

                  (c) Notes bearing the manual or facsimile signature of
individuals who were at any time Authorized Officers of the Owner Trustee shall
bind the Owner Trustee, notwithstanding that such individuals or any of them
have ceased to hold such office prior to the authentication and delivery of such
Notes or did not hold such office at the date of such Notes.

                  (d) The Indenture Trustee shall upon Issuer Order authenticate
and deliver to or upon the order of the Owner Trustee, the Notes for original
issue in aggregate principal amount of $500,000,000, comprised of (i) Class A-1
Notes in the aggregate principal amount of $79,638,000, (ii) Class A-2 Notes in
the aggregate principal amount of $131,715,000, (iii) Class A-3 Notes in the
aggregate principal amount of $179,000,000 and (iv) Class A-4 Notes in the
aggregate principal amount of $90,897,000, and (v) Class B Notes in the
aggregate principal amount of $18,750,000. The aggregate principal amount of all
Notes outstanding at any time may not exceed $500,000,000 except as provided in
Section 2.5.

                  (e) No Notes shall be entitled to any benefit under this
Indenture or be valid or obligatory for any purpose, unless there appears on
such Note a certificate of authentication substantially in the form set forth,
in the case of the Class A-1 Notes, in Exhibit B, in the case of the Class A-2
                                       ---------
Notes, the Class A-4 Notes and the Class B Notes, in Exhibit C, and in the case
                                                     ---------
of the Class A-3 Notes, in Exhibit D, executed by the Indenture Trustee by the
                           ---------
manual signature of one of its authorized signatories, and such certificate upon
any Note shall be conclusive evidence, and the only evidence, that such Note has
been duly authenticated and delivered hereunder.

                  SECTION 2.3              Temporary Notes.
                                           ---------------

                  (a) Pending the preparation of Definitive Notes, if any, the
Owner Trustee may execute, and upon receipt of an Issuer Order the Indenture
Trustee shall authenticate and deliver, such Temporary Notes which are printed,
lithographed, typewritten, mimeographed or otherwise produced, of the tenor of
the Definitive Notes in lieu of which they are issued and with such variations
as are consistent with the terms of this Indenture as the officers executing
such Notes may determine, as evidenced by their execution of such Notes.

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

                                       5

<PAGE>

                  SECTION 2.4 Registration; Registration of Transfer and
                              ------------------------------------------
Exchange of Notes.
-----------------

                  (a) The Owner Trustee shall cause to be kept the Note
Register, comprising separate registers for each class of Notes, in which,
subject to such reasonable regulations as the Owner Trustee may prescribe, the
Owner Trustee shall provide for the registration of the Notes and the
registration of transfers and exchanges of the Notes. The Indenture Trustee
shall initially be the Note Registrar for the purpose of registering the Notes
and transfers of the Notes as herein provided. Upon any resignation of any Note
Registrar, the Owner Trustee shall promptly appoint a successor Note Registrar
or, if it elects not to make such an appointment, assume the duties of the Note
Registrar.

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

                  (c) Upon surrender for registration of transfer of any Note at
the Corporate Trust Office of the Indenture Trustee or the Agency Office of the
Owner Trustee (and following the delivery, in the former case, of such Notes to
the Owner Trustee by the Indenture Trustee), the Owner Trustee shall execute,
the Indenture Trustee shall authenticate and the Noteholder shall obtain from
the Indenture Trustee, in the name of the designated transferee or transferees,
one or more new Notes in any authorized denominations, of a like aggregate
principal amount.

                  (d) At the option of the Noteholder, Notes may be exchanged
for other Notes of the same class in any authorized denominations, of a like
aggregate principal amount, upon surrender of the Notes to be exchanged at the
Corporate Trust Office of the Indenture Trustee or the Agency Office of the
Owner Trustee (and following the delivery, in the former case, of such Notes to
the Owner Trustee by the Indenture Trustee), the Owner Trustee shall execute,
and the Indenture Trustee shall authenticate and the Noteholder shall obtain
from the Indenture Trustee, the Notes which the Noteholder making the exchange
is entitled to receive.

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

                  (f) Every Note presented or surrendered for registration of
transfer or exchange shall be duly endorsed by, or be accompanied by a written
instrument of transfer in form satisfactory to the Indenture Trustee and the
Note Registrar, duly executed by the Holder thereof or such Holder's attorney
duly authorized in writing, with such signature guaranteed by a commercial bank
or trust company located, or having a correspondent located, in the City of New
York or the city in which the Corporate Trust Office of the Indenture Trustee is
located, or by a member firm of a national securities exchange, and such other
documents as the Indenture Trustee may require.

                                       6

<PAGE>

                  (g)  No service charge shall be made to a Holder for any
registration of transfer or exchange of Notes, but the Owner Trustee or
Indenture Trustee may require payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection with any
registration of transfer or exchange of Notes, other than exchanges pursuant to
Sections 2.3 or 9.6 not involving any transfer.

                  (h)  The preceding provisions of this Section 2.4
notwithstanding, the Owner Trustee shall not be required to transfer or make
exchanges, and the Note Registrar need not register transfers or exchanges, of
Notes that: (i) have been selected for redemption pursuant to Article X, if
applicable; or (ii) are due for repayment in full within 15 days of surrender to
the Corporate Trust Office or the Agency Office.

                  SECTION 2.5    Mutilated, Destroyed, Lost or Stolen Notes.
                                 ------------------------------------------

                  (a) If (i) any mutilated Note is surrendered to the Indenture
Trustee, or the Indenture Trustee receives evidence to its satisfaction of the
destruction, loss or theft of any Note, and (ii) there is delivered to the
Indenture Trustee such security or indemnity as may be required by it to hold
the Owner Trustee and the Indenture Trustee harmless, then, in the absence of
notice to the Owner Trustee, the Note Registrar or the Indenture Trustee that
such Note has been acquired by a bona fide purchaser, the Owner Trustee shall
execute and upon the Owner Trustee's request the Indenture Trustee shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Note, a replacement Note of a like class and aggregate
principal amount; provided, however, that if any such destroyed, lost or stolen
                  --------  -------
Note, but not a mutilated Note, shall have become or within seven days shall be
due and payable in full, or shall have been called for redemption, instead of
issuing a replacement Note, the Owner Trustee may make payment to the Holder of
such destroyed, lost or stolen Note when so due or payable or upon the
Redemption Date, if applicable, without surrender thereof.

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

                  (c) In connection with the issuance of any replacement Note
under this Section 2.5, the Owner Trustee may require the payment by the Holder
of such Note of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto and any other reasonable expenses
(including all fees and expenses of the Indenture Trustee) connected therewith.

                  (d) Any duplicate Note issued pursuant to this Section 2.5 in
replacement for any mutilated, destroyed, lost or stolen Note shall constitute
an original additional contractual obligation of the Owner Trustee, whether or
not the mutilated, destroyed, lost or stolen Note shall be found at

                                       7

<PAGE>

any time or be enforced by any Person, and shall be entitled to all the benefits
of this Indenture equally and proportionately with any and all other Notes duly
issued hereunder.

                  (e) The provisions of this Section 2.5 are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Notes.

                  SECTION 2.6  Persons Deemed Noteholders. Prior to due
                                --------------------------
presentment for registration of transfer of any Note, the Owner Trustee, the
Indenture Trustee and any of their agents may treat the Person in whose name any
Note is registered (as of the day of determination) as the Noteholder for the
purpose of receiving payments of principal of and interest on such Note and for
all other purposes whatsoever, whether or not such Note be overdue, and neither
the Owner Trustee, the Indenture Trustee nor any agent of the Owner Trustee or
the Indenture Trustee shall be affected by notice to the contrary.

                  SECTION 2.7  Payment of Principal and Interest.
                                ---------------------------------

                  (a) Interest on the Class A-1 Notes shall accrue in the manner
set forth in Exhibit B at the applicable Interest Rate for such class, and such
             ---------
interest shall be payable on each Distribution Date, in accordance with the
priorities set forth in Section 8.2(c), as specified in the form of Note set
forth in Exhibit B. Interest on the Class A-2 Notes, the Class A-4 Notes and the
         ---------
Class B Notes shall accrue in the manner set forth in Exhibit C at the
                                                      ---------
applicable Interest Rate for such class, and shall be payable on each
Distribution Date, in accordance with the priorities set forth in Section
8.2(c), as specified in the form of Note set forth in Exhibit C. Interest on the
                                                      ---------
Class A-3 Notes shall accrue in the manner set forth in Exhibit D at the
                                                        ---------
applicable Interest Rate for such class, and shall be payable on each
Distribution Date, in accordance with the priorities set forth in Section
8.2(c), as specified in the form of Note set forth in Exhibit D. Any instalment
                                                      ---------
of interest payable on any Note shall be punctually paid or duly provided for by
a deposit by or at the direction of the Owner Trustee or the Servicer into the
Note Distribution Account before each Distribution Date for payment to
Noteholders on the related Distribution Date and shall be paid to the Person in
whose name such Note (or one or more Predecessor Notes) is registered on the
applicable Record Date, by check mailed first-class, postage prepaid to such
Person's address as it appears on the Note Register on such Record Date;
provided, however, that, unless and until Definitive Notes have been issued
--------- -------
pursuant to Section 2.12, with respect to Notes registered on the applicable
Record Date in the name of the Note Depository (initially, Cede & Co.), payment
shall be made by wire transfer in immediately available funds to the account
designated by the Note Depository.

                  (b) Prior to the occurrence of an Event of Default and a
declaration in accordance with Section 5.2(a) that the Notes have become
immediately due and payable, the principal of each class of Notes shall be
payable in full on the Final Scheduled Distribution Date for such class and, to
the extent of funds available therefor, in instalments on the Distribution Dates
(if any) preceding the Final Scheduled Distribution Date for such class, in the
amounts and in accordance with the priorities set forth in Section 8.2(c)(ii) or
(iii), as applicable, and, if applicable, Section 8.2(d). All principal payments
on each class of Notes shall be made pro rata to the Noteholders of such class
entitled thereto. Any instalment of principal payable on any Note shall be
punctually paid or duly provided for by a deposit by the Indenture Trustee in
accordance with the provisions of the Pooling

                                       8

<PAGE>

and Servicing Agreement into the Note Distribution Account prior to the
applicable Distribution Date and shall be paid to the Person in whose name such
Note (or one or more Predecessor Notes) is registered on the applicable Record
Date, by check mailed first-class, postage prepaid to such Person's address as
it appears on the Note Register on such Record Date; provided, however, that,
                                                     --------  -------
unless and until Definitive Notes have been issued pursuant to Section 2.12,
with respect to Notes registered on the Record Date in the name of the Note
Depository, payment shall be made by wire transfer in immediately available
funds to the account designated by the Note Depository, except for: (i) the
final instalment of principal on any Note; and (ii) the Redemption Price for the
Notes redeemed pursuant to Section 10.1, which, in each case, shall be payable
as provided herein. The funds represented by any such checks in respect of
interest or principal returned undelivered shall be held in accordance with
Section 3.3.

                  (c)      [Reserved.]

                  (d) From and after the occurrence of an Event of Default and a
declaration in accordance with Section 5.2(a) that the Notes have become
immediately due and payable, principal on the Notes shall be payable as provided
in Section 8.2(c) (iv) or (v), as applicable and, if applicable, Section 8.2(d).

                  (e) With respect to any Distribution Date on which the final
instalment of principal and interest on a class of Notes is to be paid, the
Indenture Trustee shall notify each Noteholder of such class of record as of the
Record Date for such Distribution Date of the fact that the final instalment of
principal of and interest on such Note is to be paid on such Distribution Date.
Such notice shall be sent (i) on such Record Date by facsimile, if Book-Entry
Notes are outstanding; or (ii) not later than three Business Days after such
Record Date in accordance with Section 11.5(a) if Definitive Notes are
outstanding, and shall specify that such final instalment shall be payable only
upon presentation and surrender of such Note and shall specify the place where
such Note may be presented and surrendered for payment of such instalment and
the manner in which such payment shall be made. Notices in connection with
redemptions of Notes shall be mailed to Noteholders as provided in Section 10.2.
Within sixty days of the surrender pursuant to this Section 2.7(e) or
cancellation pursuant to Section 2.8 of all of the Notes of a particular class,
the Indenture Trustee shall provide each of the Rating Agencies with written
notice stating that all Notes of such class have been surrendered or canceled.

                  SECTION 2.8 Cancellation of Notes. All Notes surrendered for
                               ---------------------
payment, redemption, exchange or registration of transfer shall, if surrendered
to any Person other than the Indenture Trustee, be delivered to the Indenture
Trustee and shall be promptly canceled by the Indenture Trustee. The Owner
Trustee may at any time deliver to the Indenture Trustee for cancellation any
Notes previously authenticated and delivered hereunder which the Owner Trustee
may have acquired in any manner whatsoever, and all Notes so delivered shall be
promptly canceled by the Indenture Trustee. No Notes shall be authenticated in
lieu of or in exchange for any Notes canceled as provided in this Section 2.8,
except as expressly permitted by this Indenture. All canceled Notes may be held
or disposed of by the Indenture Trustee in accordance with its standard
retention or disposal policy as in effect at the time unless the Owner Trustee
shall direct by an Issuer Order that they be returned to it; provided, however,
                                                             --------  -------
that such Issuer Order is timely and the Notes have not been previously disposed
of by the Indenture Trustee. The Indenture Trustee shall certify to

                                       9

<PAGE>

the Owner Trustee that surrendered Notes have been duly canceled and retained or
destroyed, as the case may be.

                  SECTION 2.9 Release of Collateral. The Indenture Trustee
                              ---------------------
shall release property from the lien of this Indenture, other than as permitted
by Sections 3.21, 8.2, 8.4 and 11.1, only upon receipt of an Issuer Request
accompanied by an Officers' Certificate, an Opinion of Counsel (to the extent
required by the TIA) and Independent Certificates in accordance with TIA(S)(S)
314(c) and 314(d)(1).

                  SECTION 2.10 Book-Entry Notes. The Notes, upon original
                               ----------------
issuance, shall be issued in the form of a typewritten Note or Notes
representing the Book-Entry Notes, to be delivered to The Depository Trust
Company, the initial Clearing Agency by or on behalf of the Owner Trustee. Such
Note or Notes shall be registered on the Note Register in the name of the Note
Depository (initially, Cede & Co.), and no Note Owner shall receive a Definitive
Note representing such Note Owner's interest in such Note, except as provided in
Section 2.12. Unless and until Definitive Notes have been issued to the Note
Owners pursuant to Section 2.12:

                           (a)  the provisions of this Section 2.10 shall be in
          full force and effect;

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

                           (c)  to the extent that the provisions of this
         Section 2.10 conflict with any other provisions of this Indenture, the
         provisions of this Section 2.10 shall control;

                           (d)  the rights of the Note Owners shall be exercised
         only through the Clearing Agency and shall be limited to those
         established by law and agreements between such Note Owners and the
         Clearing Agency and/or the Clearing Agency Participants and unless and
         until Definitive Notes are issued pursuant to Section 2.12, the initial
         Clearing Agency shall make book-entry transfers between the Clearing
         Agency Participants and receive and transmit payments of principal of
         and interest on the Notes to such Clearing Agency Participants,
         pursuant to the Note Depository Agreement; and

                           (e)  whenever this Indenture requires or permits
         actions to be taken based upon instructions or directions of Holders of
         Notes evidencing a specified percentage of the Outstanding Amount of
         the Voting Notes, the Clearing Agency shall be deemed to represent such
         percentage only to the extent that it has (i) received written
         instructions to such effect from Note Owners and/or Clearing Agency
         Participants owning or representing, respectively, such required
         percentage of the beneficial interest in the Notes and (ii) has
         delivered such instructions to the Indenture Trustee.

                  SECTION 2.11 Notices to Clearing Agency. Whenever a notice or
                               --------------------------
other communication to the Noteholders is required under this Indenture, unless
and until Definitive Notes shall have been issued to Note Owners pursuant to
Section 2.12, the Indenture Trustee shall give all

                                       10

<PAGE>

such notices and communications specified herein to be given to Noteholders to
the Clearing Agency and shall have no other obligation to the Note Owners.

                  SECTION 2.12     Definitive Notes.
                                   ----------------

                  If (i) the Administrator advises the Indenture Trustee in
writing that the Clearing Agency is no longer willing or able to properly
discharge its responsibilities with respect to the Notes and the Owner Trustee
is unable to locate a qualified successor; (ii) the Administrator, at its
option, advises the Indenture Trustee in writing that it elects to terminate the
book-entry system through the Clearing Agency; or (iii) after the occurrence of
an Event of Default or a Servicer Default, Note Owners representing beneficial
interests aggregating at least a majority of the Outstanding Amount of the
Voting Notes advise the Clearing Agency in writing that the continuation of a
book-entry system through the Clearing Agency is no longer in the best interests
of the Note Owners, then the Clearing Agency shall notify all Note Owners and
the Indenture Trustee of the occurrence of any such event and of the
availability of Definitive Notes to Note Owners requesting the same. Upon
surrender to the Indenture Trustee of the typewritten Note or Notes representing
the Book-Entry Notes by the Clearing Agency, accompanied by registration
instructions, the Owner Trustee shall execute and the Indenture Trustee shall
authenticate the Definitive Notes in accordance with the instructions of the
Clearing Agency. None of the Owner Trustee, the Note Registrar or the Indenture
Trustee shall be liable for any delay in delivery of such instructions and may
conclusively rely on, and shall be protected in relying on, such instructions.
Upon the issuance of Definitive Notes, the Indenture Trustee shall recognize the
Holders of the Definitive Notes as Noteholders.

                  SECTION 2.13     Seller as Noteholder. The Seller in its
                                   --------------------
individual or any other capacity may become the owner or pledgee of Notes and
may otherwise deal with the Owner Trustee or its affiliates with the same rights
it would have if it were not the Seller.

                  SECTION 2.14     Tax Treatment. The Owner Trustee in entering
                                   -------------
into this Indenture, and the Noteholders and the Note Owners, by acquiring any
Note or interest therein, (i) express their intention that the Notes qualify
under applicable tax law as indebtedness secured by the Collateral, and (ii)
unless otherwise required by appropriate taxing authorities, agree to treat the
Notes as indebtedness secured by the Collateral for the purpose of federal
income taxes, state and local income and franchise taxes, and any other taxes
imposed upon, measured by or based upon gross or net income.

                                       11

<PAGE>

                                   ARTICLE III
                                    COVENANTS

                  SECTION 3.1 Payment of Principal and Interest. The Owner
                                ---------------------------------
Trustee shall duly and punctually pay the principal of and interest on the Notes
in accordance with the terms of the Notes and this Indenture. On each
Distribution Date and on the Redemption Date (if applicable), the Indenture
Trustee shall distribute amounts on deposit in the Note Distribution Account to
the Noteholders in accordance with Sections 2.7 and 8.2, less amounts properly
withheld under the Code by any Person from a payment to any Noteholder of
interest and/or principal. Any amounts so withheld shall be considered as having
been paid by the Owner Trustee to such Noteholder for all purposes of this
Indenture.

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

                  SECTION 3.3 Money for Payments To Be Held in Trust.
                                --------------------------------------

                  (a) As provided in Section 8.2, all payments of amounts due
and payable with respect to any Notes that are to be made from amounts withdrawn
from the Note Distribution Account pursuant to Section 8.2(c), (d) or (e) shall
be made on behalf of the Owner Trustee by the Indenture Trustee or by another
Paying Agent, and no amounts so withdrawn from the Note Distribution Account for
payments of Notes shall be paid over to the Owner Trustee except as provided in
this Section 3.3.

                  (b) Before each Distribution Date or the Redemption Date (if
applicable), the Indenture Trustee shall deposit in the Note Distribution
Account an aggregate sum sufficient to pay the amounts then becoming due with
respect to the Notes, such sum to be held in trust for the benefit of the
Persons entitled thereto.

                  (c) The Owner Trustee shall cause each Paying Agent other than
the Indenture Trustee to execute and deliver to the Indenture Trustee an
instrument in which such Paying Agent shall agree with the Indenture Trustee
(and if the Indenture Trustee acts as Paying Agent, it hereby so agrees),
subject to the provisions of this Section 3.3, that such Paying Agent shall:

                  (i) hold all sums held by it for the payment of amounts due
                      with respect to the Notes in trust for the benefit of the
                      Persons entitled thereto until such sums

                                       12

<PAGE>

                           shall be paid to such Persons or otherwise disposed
                           of as herein provided and pay such sums to such
                           Persons as herein provided;

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

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

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

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

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

                  (e)      Subject to applicable laws with respect to escheat of
funds, any money held by the Indenture Trustee or any Paying Agent in trust for
the payment of any amount due with respect to any Note and remaining unclaimed
for one year after such amount has become due and payable shall be discharged
from such trust and be paid by the Indenture Trustee to the Owner Trustee on
Issuer Request; and the Holder of such Note shall thereafter, as an unsecured
general creditor, look only to the Owner Trustee for payment thereof (but only
to the extent of the amounts so paid to the Owner Trustee), and all liability of
the Indenture Trustee or such Paying Agent with respect to such trust money
shall thereupon cease; provided, however, that the Indenture Trustee or such
                       --------  -------
Paying Agent, before being required to make any such payment, may at the expense
of the Owner Trustee cause to be published once, in a newspaper published in the
English language, customarily published on each Business Day and of general
circulation in the City of New York, notice that such money remains unclaimed
and that, after a date specified therein, which shall not be less than 30 days
from the date of such publication, any unclaimed balance of such money then
remaining shall be paid to the Owner Trustee. The Indenture Trustee may also
adopt and employ, at the expense of the Owner Trustee, any other reasonable
means of notification of such payment (including, but not limited to, mailing
notice of such payment to Holders whose Notes have been called but have not been
surrendered for redemption or whose right to or interest in monies due and
payable but not claimed is determinable from the records of the Indenture
Trustee or of any Paying Agent, at the last address of record for each such
Holder).

                                       13

<PAGE>

               SECTION 3.4    Existence. The Owner Trustee shall keep in full
                                ---------
effect its existence, rights and franchises as a national bank (unless it
becomes, or any successor Owner Trustee hereunder is or becomes, organized under
the laws of any other State or of the United States of America, in which case it
shall keep in full effect its existence, rights and franchises under the laws of
such other jurisdiction) and shall obtain and preserve its qualification to do
business in each jurisdiction in which such qualification is or shall be
necessary to protect the validity and enforceability of this Indenture, the
Notes, the Collateral and each other instrument or agreement included in the
Trust Estate.

               SECTION 3.5    Protection of Trust Estate; Acknowledgment of
                                ---------------------------------------------
Pledge. The Owner Trustee shall from time to time execute and deliver all such
------
supplements and amendments hereto and all such financing statements, amendments
thereto, continuation statements, assignments, certificates, instruments of
further assurance and other instruments, and shall take such other action as may
be determined to be necessary or advisable in an Opinion of Counsel to the Owner
Trustee delivered to the Indenture Trustee to:

               (i)   maintain or preserve the lien and security interest (and
the priority thereof) of this Indenture or carry out more effectively the
purposes hereof including by making the necessary filings of financing
statements or amendments thereto within sixty days after the occurrence of any
of the following: (A) any change in the Owner Trustee's (or its successor's)
name, (B) any change in the jurisdiction in which the Owner Trustee (or its
successor) is located for purposes of the UCC and (C) any merger or
consolidation or other change in the Owner Trustee's identity or organizational
structure and by promptly notifying the Indenture Trustee of any such filings;

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

               (iii) enforce the rights of the Indenture Trustee and the
Noteholders in any of the Collateral; or

               (iv)  preserve and defend title to the Trust Estate and the
rights of the Indenture Trustee and the Noteholders in such Trust Estate against
the claims of all Persons and parties, and the Owner Trustee hereby designates
the Indenture Trustee its agent and attorney-in-fact to execute any financing
statement, continuation statement or other instrument required by the Indenture
Trustee pursuant to this Section 3.5.

               SECTION 3.6    Opinions as to Trust Estate.
                                ---------------------------

               (a)   On the Closing Date, the Owner Trustee shall furnish to the
Indenture Trustee an Opinion of Counsel either stating that, in the opinion of
such counsel, such action has been taken with respect to the recording and
filing of this Indenture, any indentures supplemental hereto and any other
requisite documents, and with respect to the execution and filing of any
financing statements and continuation statements as are necessary to perfect and
make effective the lien and security interest of this Indenture and reciting the
details of such action, or stating that, in the opinion of such counsel, no such
action is necessary to make such lien and security interest effective.

                                       14

<PAGE>

               (b)   On or before April 15 in each calendar year, beginning
April 15, 2003, the Owner Trustee shall furnish to the Indenture Trustee an
Opinion of Counsel either stating that, in the opinion of such counsel, such
action has been taken with respect to the recording, filing, re-recording and
refiling of this Indenture, any indentures supplemental hereto and any other
requisite documents and with respect to the execution and filing of any
financing statements and continuation statements as is necessary to maintain the
lien and security interest created by this Indenture and reciting the details of
such action or stating that in the opinion of such counsel no such action is
necessary to maintain the lien and security interest created by this Indenture.
Such Opinion of Counsel shall also describe the recording, filing, re-recording
and refiling of this Indenture, any indentures supplemental hereto and any other
requisite documents and the execution and filing of any financing statements and
continuation statements that will, in the opinion of such counsel, be required
to maintain the lien and security interest of this Indenture until April 15 in
the following calendar year.

               SECTION 3.7     Performance of Obligations; Servicing of
Receivables.                     ----------------------------------------
-----------

               (a)   The Owner Trustee shall not take any action and shall use
its reasonable efforts not to permit any action to be taken by others that would
release any Person from any of such Person's material covenants or obligations
under any instrument or agreement included in the Trust Estate or that would
result in the amendment, hypothecation, subordination, termination or discharge
of, or impair the validity or effectiveness of, any such instrument or
agreement, except as otherwise expressly provided in this Indenture, the Pooling
and Servicing Agreement, the Purchase Agreement, the Administration Agreement or
such other instrument or agreement.

               (b)   The Owner Trustee may contract with other Persons to assist
it in performing its duties under this Indenture, and any performance of such
duties by a Person identified to the Indenture Trustee in the Basic Documents or
an Officers' Certificate of the Owner Trustee shall be deemed to be action taken
by the Owner Trustee. Initially, the Owner Trustee has contracted with the
Servicer and the Administrator to assist the Owner Trustee in performing its
duties under this Indenture.

               (c)   The Owner Trustee shall punctually perform and observe all
of its obligations and agreements contained in this Indenture, the Basic
Documents and in the instruments and agreements included in the Trust Estate,
including but not limited to filing or causing to be filed all UCC financing
statements and continuation statements required to be filed under the terms of
this Indenture, the Pooling and Servicing Agreement and the Purchase Agreement
in accordance with and within the time periods provided for herein and therein.

               (d)   If the Owner Trustee shall have knowledge of the occurrence
of a Servicer Default under the Pooling and Servicing Agreement, the Owner
Trustee shall promptly notify the Indenture Trustee and the Rating Agencies
thereof, and shall specify in such notice the response or action, if any, the
Owner Trustee has taken or is taking with respect of such default. If a Servicer
Default shall arise from the failure of the Servicer to perform any of its
duties or obligations under the Pooling and Servicing Agreement with respect to
the Receivables, the Owner Trustee and the Indenture Trustee shall take all
reasonable steps available to them pursuant to the Pooling and Servicing
Agreement to remedy such failure.

                                       15

<PAGE>

               (e)   Without derogating from the absolute nature of the
assignment granted to the Indenture Trustee under this Indenture or the rights
of the Indenture Trustee hereunder, the Owner Trustee agrees that it shall not,
without the prior written consent of the Indenture Trustee or the Holders of at
least a majority in Outstanding Amount of the Voting Notes, as applicable in
accordance with the terms thereof, amend, modify, waive, supplement, terminate
or surrender, or agree to any amendment, modification, supplement, termination,
waiver or surrender of, the terms of any Collateral or any of the Basic
Documents, or waive timely performance or observance by the Servicer or the
Seller under the Pooling and Servicing Agreement or the Purchase Agreement, the
Administrator under the Administration Agreement or NFC under the Purchase
Agreement; provided, however, that, notwithstanding the foregoing, no action
           --------  -------
specified in the proviso to Section 9.2(a) shall be taken except in compliance
                 -------
with Section 9.2. If any such amendment, modification, supplement or waiver
shall be so consented to by the Indenture Trustee or such Holders, as
applicable, the Owner Trustee agrees, promptly following a request by the
Indenture Trustee to do so, to execute and deliver, in its own name and at its
own expense, such agreements, instruments, consents and other documents as the
Indenture Trustee may deem necessary or appropriate in the circumstances.

               SECTION 3.8    Negative Covenants.  So long as any Notes are
                                ------------------
Outstanding, the Owner Trustee shall not:

               (a)   sell, transfer, exchange or otherwise dispose of any of the
properties or assets of the Owner Trust Estate, except the Owner Trustee may (i)
collect, liquidate, sell or otherwise dispose of Receivables (including Warranty
Receivables, Administrative Receivables and Liquidating Receivables), (ii) make
cash payments out of the Designated Accounts and the Certificate Distribution
Account and (iii) take other actions, in each case as contemplated by the Basic
Documents;

               (b)   claim any credit on, or make any deduction from the
principal or interest payable in respect of the Notes (other than amounts
properly withheld from such payments under the Code or applicable state law) or
assert any claim against any present or former Noteholder by reason of the
payment of the taxes levied or assessed upon any part of the Trust Estate;

               (c)   voluntarily commence any insolvency, readjustment of debt,
marshaling of assets and liabilities or other proceeding, or apply for an order
by a court or agency or supervisory authority for the winding-up or liquidation
of its affairs or any other event specified in Section 5.1(f); or

               (d)   either (i) permit the validity or effectiveness of this
Indenture to be impaired, or permit the lien of this Indenture to be amended,
hypothecated, subordinated, terminated or discharged, or permit any Person to be
released from any covenants or obligations with respect to the Notes under this
Indenture except as may be expressly permitted hereby, (ii) permit any lien,
charge, excise, claim, security interest, mortgage or other encumbrance (other
than the lien of this Indenture) to be created on or extend to or otherwise
arise upon or burden the Trust Estate or any part thereof or any interest
therein or the proceeds thereof (other than tax liens, mechanics' liens and
other liens that arise by operation of law, in each case on a Financed Vehicle
and arising solely as a result of an

                                       16

<PAGE>

action or omission of the related Obligor), or (iii) permit the lien of this
Indenture not to constitute a valid first priority security interest in the
Trust Estate (other than with respect to any such tax, mechanics' or other
lien).

               SECTION 3.9    Annual Statement as to Compliance. The Owner
                              ---------------------------------
Trustee shall deliver to the Indenture Trustee, with a copy to each of the
Rating Agencies, on or before February 1 of each year, beginning February 1,
2003, an Officer's Certificate signed by an Authorized Officer, dated as of the
immediately preceding October 31, stating that:

               (a)  a review of the activities of the Trust during such fiscal
year and of performance by the Owner Trustee under this Indenture has been made
under such Authorized Officer's supervision; and

               (b)  to the best of such Authorized Officer's knowledge, based on
such review, the Owner Trustee has fulfilled in all material respects all of its
obligations under this Indenture throughout such year, or, if there has been a
default in the fulfillment of any such obligation, specifying each such default
known to such Authorized Officer and the nature and status thereof. A copy of
such certificate may be obtained by any Noteholder by a request in writing to
the Owner Trustee addressed to the Corporate Trust Office of the Indenture
Trustee.

               SECTION 3.10   Consolidation, Merger, etc., of Owner Trustee;
                              ----------------------------------------------
Disposition of Trust Assets. The Owner Trustee may be merged with or into or
---------------------------
consolidated with another Person provided that such merger or consolidation
complies with the requirements of Section 6.11 of the Trust Agreement and the
surviving entity is eligible as the Owner Trustee under Section 6.13 of the
Trust Agreement.

               SECTION 3.11   Successor or Transferee.
                              -----------------------

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

               (b)  Upon the appointment of a successor trustee as Owner Trustee
under the Trust Agreement, such successor Owner Trustee shall succeed to, and be
substituted for, and may exercise every right and power of, the Owner Trustee
under this Indenture with the same effect as if such Person had been named as
the Owner Trustee herein.

               SECTION 3.12   No Other Business. The Owner Trustee shall not
                              -----------------
engage in any business or activity other than acquiring, holding and managing
the Collateral and the proceeds therefrom in the manner contemplated by the
Basic Documents, issuing the Securities, making payments on the Securities and
such other activities that are necessary, suitable, desirable or convenient to
accomplish the foregoing or are incidental thereto, as set forth in Section 2.3
of the Trust Agreement. After the end of the Funding Period, the Owner Trustee
shall not fund the purchase of any new Retail Notes.

                                       17

<PAGE>

               SECTION 3.13   No Borrowing. The Owner Trustee shall not issue,
                              ------------
incur, assume, guarantee or otherwise become liable, directly or indirectly, for
any indebtedness for money borrowed other than indebtedness for money borrowed
in respect of the Notes or in accordance with the Basic Documents.

               SECTION 3.14   Guarantees, Loans, Advances and Other
                              -------------------------------------
Liabilities. Except as contemplated by this Indenture or the other Basic
-----------
Documents, the Owner Trustee shall not make any loan or advance or credit to, or
guarantee (directly or indirectly or by an instrument having the effect of
assuring another's payment or performance on any obligation or capability of so
doing or otherwise), endorse or otherwise become contingently liable, directly
or indirectly, in connection with the obligations, stocks or dividends of, or
own, purchase, repurchase or acquire (or agree contingently to do so) any stock,
obligations, assets or securities of, or any other interest in, or make any
capital contribution to, any other Person.

               SECTION 3.15   Servicer's Obligations. The Owner Trustee shall
                              ----------------------
use its best efforts to cause the Servicer to comply with its obligations under
Sections 3.10, 4.01 and 4.02 of the Pooling and Servicing Agreement.

               SECTION 3.16   Capital Expenditures. The Owner Trustee shall
                              --------------------
not make any expenditure of the funds of the Owner Trust Estate (whether by
long-term or operating lease or otherwise) for capital assets (either real,
personal or intangible property) other than the purchase of the Receivables and
other property and rights from the Seller pursuant to the Pooling and Servicing
Agreement.

               SECTION 3.17   Removal of Administrator. So long as any Notes
                              ------------------------
are Outstanding, the Owner Trustee shall not remove the Administrator without
cause unless the Rating Agency Condition for each class of Notes then
outstanding shall have been satisfied in connection with such removal.

               SECTION 3.18   Restricted Payments. Except for payments of
                              -------------------
principal or interest on or redemption of the Notes, so long as any Notes are
Outstanding, the Owner Trustee shall not, directly or indirectly:

               (a)  pay any dividend or make any distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, to any owner of a beneficial interest in the Trust or otherwise, in
each case with respect to any ownership or equity interest or similar security
in or of the Trust or to the Servicer;

               (b)  redeem, purchase, retire or otherwise acquire for value any
such ownership or equity interest or similar security; or

               (c)  set aside or otherwise segregate any amounts for any such
purpose;

provided, however, that the Owner Trustee may make, or cause to be made,
--------  -------
distributions to the Servicer, the Seller, the Indenture Trustee, the Owner
Trustee and the Financial Parties as permitted

                                       18

<PAGE>

by, and to the extent funds are available for such purpose under, the Pooling
and Servicing Agreement, the Trust Agreement or the other Basic Documents. The
Owner Trustee shall not, directly or indirectly, make payments to or
distributions from the Collection Account except in accordance with the Basic
Documents.

           SECTION 3.19  Notice of Events of Default. The Owner Trustee agrees
                         ---------------------------
to give the Indenture Trustee and the Rating Agencies prompt written notice of
each Event of Default hereunder, each Servicer Default, each default on the part
of the Seller of its obligations under the Pooling and Servicing Agreement and
each default on the part of NFC of its obligations under the Purchase Agreement.

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

           SECTION 3.21  Indenture Trustee's Assignment of Administrative
                         ------------------------------------------------
Receivables and Warranty Receivables. Upon receipt of the Administrative
------------------------------------
Purchase Payment or the Warranty Payment with respect to an Administrative
Receivable or a Warranty Receivable, as the case may be, the Indenture Trustee
shall release to the Servicer or the Warranty Purchaser, as applicable, all of
the Indenture Trustee's right, title and interest in and to such repurchased
Receivable, all monies due thereon, the security interest in the related
Financed Vehicle or Financed Vehicles and any accessions thereto, the benefit of
any lease assignment with respect to the related Financed Vehicle or Financed
Vehicles, proceeds arising thereafter from any Insurance Policies with respect
to such Receivable, proceeds arising thereafter from any Dealer Liability on
such Receivable, proceeds arising thereafter of International Purchase
Obligations with respect to such Receivable, proceeds arising thereafter of any
Guaranties with respect to such Receivable and the interests of the Indenture
Trustee in certain rebates of premiums and other amounts relating to the
Insurance Policies and any documents relating thereto, and the Servicer or the
Warranty Purchaser, as applicable, shall thereupon own such Receivable, and all
such security and documents, free of any further obligation to the Indenture
Trustee or the Noteholders with respect thereto. If in any enforcement suit or
legal proceeding it is held that the Servicer may not enforce a Receivable on
the ground that it is not a real party in interest or a holder entitled to
enforce such Receivable, the Indenture Trustee shall, at the Servicer's expense,
take such steps as the Servicer deems necessary to enforce the Receivable,
including bringing suit in the Indenture Trustee's name or the names of the
Securityholders.

           SECTION 3.22  Representations and Warranties by the Owner Trustee
                           ---------------------------------------------------
to the Indenture Trustee. The Owner Trustee (not in its individual capacity, but
------------------------
solely as trustee under the Trust Agreement) hereby represents and warrants to
the Indenture Trustee as follows:

           (a)  Good Title. No Receivable has been sold, transferred, assigned
                ----------
or pledged by the Owner Trustee to any Person other than the Indenture Trustee;
immediately prior to the conveyance of the Receivables pursuant to this
Indenture, the Owner Trustee had good and marketable title thereto, free of any
Lien (except for any Lien which may exist in accessions to the Financed Vehicles
not financed by NFC); and, upon execution and delivery of this Indenture by the
Owner Trustee, the Indenture Trustee shall have all of the right, title and
interest of the Owner Trustee in, to and under the Collateral, free of any Lien
(except for any Lien which may exist in

                                       19

<PAGE>

accessions to the Financed Vehicles not financed by NFC); and

           (b)    All Filings Made. All filings necessary under the UCC in any
                  ----------------
jurisdiction to give the Indenture Trustee a first priority perfected security
interest in the Receivables and, to the extent constituting Code Collateral, the
other Collateral shall have been made. The Receivables constitute Code
Collateral.

                                   ARTICLE IV
                           SATISFACTION AND DISCHARGE

           SECTION 4.1   Satisfaction and Discharge of Indenture. This
                         ---------------------------------------
Indenture shall cease to be of further effect with respect to the Notes except
as to: (i) rights of registration of transfer and exchange; (ii) substitution of
mutilated, destroyed, lost or stolen Notes; (iii) rights of Noteholders to
receive payments of principal thereof and interest thereon; (iv) Sections 3.2,
3.3, 3.4, 3.5, 3.8, 3.10, 3.11, 3.12, 3.13, 3.14, 3.16, 3.19 and 3.21; (v) the
rights, obligations and immunities of the Indenture Trustee hereunder (including
the rights of the Indenture Trustee under Section 6.7 and the obligations of the
Indenture Trustee under Sections 4.2 and 4.4); and (vi) the rights of
Noteholders as beneficiaries hereof with respect to the property so deposited
with the Indenture Trustee payable to all or any of them, and the Indenture
Trustee, on demand of and at the expense of the Owner Trustee from the Owner
Trust Estate, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture with respect to the Notes, if:

           (a)    either:

                    (1)   all Notes theretofore authenticated and delivered
           (other than (A) Notes that have been destroyed, lost or stolen and
           that have been replaced or paid as provided in Section 2.5 and (B)
           Notes for whose payment money has theretofore been deposited in trust
           or segregated and held in trust by the Owner Trustee and thereafter
           repaid to the Owner Trustee or discharged from such trust, as
           provided in Section 3.3) have been delivered to the Indenture Trustee
           for cancellation; or

                    (2)   all Notes not theretofore delivered to the Indenture
           Trustee for cancellation:

                          (A)  have become due and payable,

                          (B)  will be due and payable on their respective Final
                  Scheduled  Distribution Dates within one year, or

                          (C)  are to be called for redemption within one year

                  under arrangements satisfactory to the Indenture Trustee for
                  the giving of notice of redemption by the Indenture Trustee in
                  the name, and at the expense, of the Owner Trustee from the
                  Owner Trust Estate,

and the Owner Trustee, in the case of (A), (B) or (C) of subsection 4.1(a)(2)
above, has irrevocably

                                       20

<PAGE>

deposited or caused to be irrevocably deposited with the Indenture Trustee cash
or direct obligations of or obligations guaranteed by the United States of
America (which will mature prior to the date such amounts are payable), in trust
for such purpose, in an amount sufficient to pay and discharge the entire unpaid
principal and accrued interest on such Notes not theretofore delivered to the
Indenture Trustee for cancellation when due on the Final Scheduled Distribution
Date for such Notes or the Redemption Date for such Notes (if such Notes are to
be called for redemption pursuant to Section 10.1(a)), as the case may be;

           (b)   the Owner Trustee has paid or caused to be paid all other sums
payable hereunder or under the Interest Rate Swap by the Owner Trustee; and

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

           SECTION 4.2  Application of Trust Money. All monies deposited with
                        --------------------------
the Indenture Trustee pursuant to Section 4.1 shall be held in trust and applied
by it, in accordance with the provisions of the Notes and this Indenture, to the
payment, either directly or through any Paying Agent, as the Indenture Trustee
may determine (i) to the Holders of the particular Notes for the payment or
redemption of which such monies have been deposited with the Indenture Trustee,
of all sums due and to become due thereon for principal and interest and (ii) to
the Swap Counterparty of all sums, if any, due or to become due to the Swap
Counterparty under and in accordance with this Indenture; but such monies need
not be segregated from other funds except to the extent required herein or in
the Pooling and Servicing Agreement or by applicable law.

           SECTION 4.3  Repayment of Monies Held by Paying Agent. In connection
                        ----------------------------------------
with the satisfaction and discharge of this Indenture with respect to each class
of Notes, all monies then held by any Paying Agent other than the Indenture
Trustee under the provisions of this Indenture with respect to each such class
of Notes shall, upon demand of the Owner Trustee, be paid to the Indenture
Trustee to be held and applied according to Section 3.3 and thereupon such
Paying Agent shall be released from all further liability with respect to such
monies.

           SECTION 4.4  Duration of Position of Indenture Trustee for Benefit
                        -----------------------------------------------------
of Certificateholders. Notwithstanding (i) the earlier payment in full of all
---------------------
principal and interest due to the Noteholders under the terms of Notes of each
class, (ii) the cancellation of such Notes pursuant to Section 2.8 and (iii) the
discharge of the Indenture Trustee's duties hereunder with respect to such
Notes, the Indenture Trustee shall continue to act in the capacity as Indenture
Trustee hereunder for the benefit of the Certificateholders and the Indenture
Trustee, for the benefit of the Certificateholders, shall comply with its
obligations under Sections 5.01, 8.02 and 8.03 of the Pooling and Servicing
Agreement, as appropriate, until such time as all distributions in respect of
the Certificates have been paid in full.

                                       21

<PAGE>

                                    ARTICLE V
                              DEFAULT AND REMEDIES

          SECTION 5.1    Events of Default. For the purposes of this Indenture,
                         -----------------
"Event of Default" wherever used herein, means any one of the following events:

          (a)    failure to pay any interest on any Note as and when the same
becomes due and payable, and such default shall continue unremedied for a period
of five (5) days; or

          (b)    except as set forth in Section 5.1(c), failure to pay any
instalment of the principal of any Note as and when the same becomes due and
payable, and such default shall continue unremedied for a period of thirty (30)
days after there shall have been given, by registered or certified mail, to the
Owner Trustee and the Seller (or the Servicer, as applicable) by the Indenture
Trustee or to the Owner Trustee and the Seller (or the Servicer, as applicable)
and the Indenture Trustee by the Holders of at least 25% of the Outstanding
Amount of the Voting Notes, a written notice specifying such default, demanding
that it be remedied and stating that such notice is a "Notice of Default"
hereunder; or

          (c)    failure to pay in full the outstanding principal balance of
any class of Notes by the Final Scheduled Distribution Date for such class; or

          (d)    default in the observance or performance in any material
respect of any covenant or agreement of the Owner Trustee made in this Indenture
(other than a covenant or agreement, a default in the observance or performance
of which is specifically dealt with elsewhere in this Section 5.1) which failure
materially and adversely affects the rights of the Noteholders, and such default
shall continue or not be cured for a period of thirty (30) days after there
shall have been given, by registered or certified mail, to the Owner Trustee and
the Seller (or the Servicer, as applicable) by the Indenture Trustee or to the
Owner Trustee and the Seller (or the Servicer, as applicable) and the Indenture
Trustee by the Holders of at least 25% of the Outstanding Amount of the Voting
Notes, a written notice specifying such default, demanding that it be remedied
and stating that such notice is a "Notice of Default" hereunder; or

          (e)    the filing of a decree or order for relief by a court having
jurisdiction in the premises in respect of the Trust or the Owner Trust Estate
or any substantial part of the Owner Trust Estate in an involuntary case under
any applicable federal or state bankruptcy, insolvency or other similar law now
or hereafter in effect, or appointing a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of the Trust or the Owner
Trust Estate (other than as Owner Trustee) or for any substantial part of the
Trust Estate, or ordering the winding-up or liquidation of the Trust's affairs,
and such decree or order shall remain unstayed and in effect for a period of
sixty (60) consecutive days; or

          (f)    the commencement by the Owner Trustee, on behalf of the Trust,
of a voluntary case under any applicable federal or state bankruptcy, insolvency
or other similar law now or hereafter in effect, or the consent by the Owner
Trustee, on behalf of the Trust, to the entry of an order for relief in an
involuntary case under any such law, or the consent by the Owner Trustee, on
behalf of the Trust, to the appointment or taking possession by a receiver,
liquidator, assignee,

                                       22

<PAGE>

custodian, trustee, sequestrator or similar official of the Trust or Owner Trust
Estate or for any substantial part of the Owner Trust Estate, or the making by
the Owner Trustee, on behalf of the Trust, of any general assignment of the
Owner Trust Estate for the benefit of creditors, or the failure by the Owner
Trustee generally to pay the debts of the Trust from the Owner Trust Estate as
such debts become due, or the taking of action by the Owner Trustee in
furtherance of any of the foregoing.

The Owner Trustee shall deliver to the Indenture Trustee, within five (5)
Business Days after learning of the occurrence thereof, written notice in the
form of an Officer's Certificate of any Default under Section 5.1(d), its status
and what action the Owner Trustee is taking or proposes to take with respect
thereto.

          SECTION 5.2    Acceleration of Maturity; Rescission and Annulment.
                         --------------------------------------------------

          (a)    If an Event of Default should occur and be continuing, then and
in every such case, unless the principal amount of the Notes shall have already
become due and payable, either the Indenture Trustee or the Holders of Notes
representing not less than a majority of the Outstanding Amount of the Voting
Notes may declare all the Notes to be immediately due and payable, by a notice
in writing to the Owner Trustee (and to the Indenture Trustee if given by the
Noteholders) setting forth the Event or Events of Default, and upon any such
declaration the unpaid principal amount of the Notes together with accrued and
unpaid interest thereon through the date of acceleration, shall become
immediately due and payable.

          (b)    At any time after such declaration of acceleration of maturity
of the Notes has been made and before a judgment or decree for payment of the
money due thereunder has been obtained by the Indenture Trustee as hereinafter
provided in this Article V, the Holders of Notes representing not less than a
majority of the Outstanding Amount of the Voting Notes, by written notice to the
Owner Trustee and the Indenture Trustee, may rescind and annul such declaration
and its consequences with respect to the Notes; provided, that no such
                                                --------
rescission and annulment shall extend to or affect any subsequent or other
Default or impair any right consequent thereto; and provided further, that if
                                                    -------- -------
the Indenture Trustee shall have proceeded to enforce any right under this
Indenture and such proceedings shall have been discontinued or abandoned because
of such rescission and annulment or for any other reason, or such proceedings
shall have been determined adversely to the Indenture Trustee, then and in every
such case, the Indenture Trustee, the Owner Trustee and the Noteholders, as the
case may be, shall be restored to their respective former positions and rights
hereunder, and all rights, remedies and powers of the Indenture Trustee, the
Owner Trustee and the Noteholders, as the case may be, shall continue as though
no such proceedings had been commenced.

                                       23

<PAGE>

          SECTION 5.3    Collection of Indebtedness and Suits for Enforcement by
                         -------------------------------------------------------
Indenture Trustee.
-----------------

          (a)    The Owner Trustee covenants that if there shall occur an Event
of Default under Sections 5.1(a), (b) or (c), the Owner Trustee shall, upon
demand of the Indenture Trustee, pay to the Indenture Trustee, for the benefit
of the Noteholders from the Owner Trust Estate in accordance with their
respective outstanding principal amounts, the entire amount then due and payable
on the Notes for principal and interest, with interest through the date of such
payment on the overdue principal amount of each class of Notes, at the rate
applicable to such class of Notes, and in addition thereto such further amount
as shall be sufficient to cover the costs and expenses of collection, including
the reasonable compensation, expenses, disbursements and advances of the
Indenture Trustee and its agents and counsel.

          (b)    If the Owner Trustee shall fail forthwith to pay such amounts
from the Owner Trust Estate upon such demand, the Indenture Trustee, in its own
name and as trustee of an express trust, may institute a Proceeding for the
collection of the sums so due and unpaid, and may prosecute such Proceeding to
judgment or final decree, and may enforce the same against the Owner Trustee and
the Owner Trust Estate or other obligor upon such Notes and collect in the
manner provided by law out of the property of the Owner Trust Estate, wherever
situated, the monies adjudged or decreed to be payable.

          (c)    If an Event of Default occurs and is continuing, the Indenture
Trustee may, as more particularly provided in Section 5.4, in its discretion,
proceed to protect and enforce its rights and the rights of the Noteholders, by
such appropriate Proceedings as the Indenture Trustee shall deem most effective
to protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any
power granted herein, or to enforce any other proper remedy or legal or
equitable right vested in the Indenture Trustee by this Indenture or by
applicable law.

          (d)    If there shall be pending, relative to the Owner Trustee or the
Owner Trust Estate or any other obligor upon the Notes or any Person having or
claiming an ownership interest in the Trust Estate, Proceedings under Title 11
of the United States Code or any other applicable federal or state bankruptcy,
insolvency or other similar law, or if a receiver, assignee or trustee in
bankruptcy or reorganization, liquidator, sequestrator or similar official shall
have been appointed for or taken possession of the Trust or the Owner Trust
Estate or such other Person, or in case of any other comparable judicial
Proceedings relative to the Owner Trustee or the Owner Trust Estate, or to the
creditors or property of the Owner Trust Estate, the Indenture Trustee,
irrespective of whether the principal of any Notes shall then be due and payable
as therein expressed or by declaration or otherwise and irrespective of whether
the Indenture Trustee shall have made any demand pursuant to the provisions of
this Section 5.3, shall be entitled and empowered, by intervention in such
Proceedings or otherwise:

                 (i) to file and prove a claim or claims for the entire amount
          of the unpaid principal and interest owing in respect of the Notes and
          to file such other papers or documents as may be necessary or
          advisable in order to have the claims of the Indenture

                                       24

<PAGE>

     Trustee (including any claim for reasonable compensation to the Indenture
     Trustee and each predecessor trustee, and their respective agents,
     attorneys and counsel, and for reimbursement of all expenses and
     liabilities incurred, and all advances made, by the Indenture Trustee and
     each predecessor trustee, except as a result of negligence or bad faith)
     and of the Noteholders allowed in such Proceedings;

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

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

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

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

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

        (f)  All rights of action and of asserting claims under this Indenture,
or under any of the Notes, may be enforced by the Indenture Trustee without the
possession of any of the Notes or the production thereof in any trial or other
Proceedings relative thereto, and any such Proceedings instituted by the
Indenture Trustee shall be brought in its own name as trustee of an express
trust, and any recovery of judgment, subject to the payment of the expenses,
disbursements and compensation of the Indenture Trustee, each predecessor
trustee and their respective agents and attorneys, shall be applied in
accordance with Section 5.4(b).

        (g)  In any Proceedings brought by the Indenture Trustee (and also any
Proceedings involving the interpretation of any provision of this Indenture to
which the Indenture Trustee shall be a party), the Indenture Trustee shall be
held to represent all the Noteholders, and it

                                       25

<PAGE>

shall not be necessary to make any Noteholder a party to any such Proceedings.

          SECTION 5.4   Remedies; Priorities.
                        --------------------

          (a)     If an Event of Default shall have occurred and be continuing
and the Notes have been accelerated under Section 5.2(a), the Indenture Trustee
may do one or more of the following (subject to Section 5.5):

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

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

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

                     (iv) sell the T`rust Estate or any portion thereof or
     rights or interest therein, at one or more public or private sales called
     and conducted in any manner permitted by law or elect to have the Owner
     Trustee maintain possession of the Receivables and continue to apply
     collections on such Receivables as if there had been no declaration of
     acceleration; provided, however, that the Indenture Trustee may not sell or
                   --------  -------
     otherwise liquidate the Trust Estate following an Event of Default and
     acceleration of the Notes, unless (A) the Holders of all of the aggregate
     Outstanding Amount of the Notes consent thereto, (B) the proceeds of such
     sale or liquidation distributable to the Noteholders are sufficient to
     discharge in full the principal of and the accrued interest on the Notes,
     in each case as of the date of such sale or liquidation or (C) (i) there
     has been an Event of Default under Section 5.1(a), (b) or (c) or otherwise
     arising from a failure to make a required payment of principal on any
     Notes, (ii) the Indenture Trustee determines that the Trust Estate will not
     continue to provide sufficient funds for the payment of principal of and
     interest on the Notes as and when they would have become due if the Notes
     had not been declared due and payable and (iii) the Indenture Trustee
     obtains the consent of Holders of a majority of the aggregate Outstanding
     Amount of the Voting Notes. In determining such sufficiency or
     insufficiency with respect to clauses (B) and (C), the Indenture Trustee
     may, but need not, obtain and rely upon an opinion of an Independent
     investment banking or accounting firm of national reputation as to the
     feasibility of such proposed action and as to the sufficiency of the Trust
     Estate for such purpose.

          (b)     If the Indenture Trustee collects any money or property
pursuant to this Article V, it shall pay out or deposit such money or property
in the following order:

                  FIRST: to the Indenture Trustee for amounts due under Section
6.7; and

                                       26

<PAGE>

                SECOND: to the Collection Account, for distribution pursuant to
Section 9.02 of the Pooling and Servicing Agreement and Section 8.2(c).

          SECTION 5.5     Optional Preservation of the Trust Estate. If the
                          -----------------------------------------
Notes have been declared to be due and payable under Section 5.2(a) following an
Event of Default and such declaration and its consequences have not been
rescinded and annulled in accordance with Section 5.2(b), the Indenture Trustee
may, but need not, elect to take and maintain possession of the Trust Estate. It
is the desire of the parties hereto and the Noteholders that there be at all
times sufficient funds for the payment of principal of and interest on the
Notes, and the Indenture Trustee shall take such desire into account when
determining whether or not to take and maintain possession of the Trust Estate.
In determining whether to take and maintain possession of the Trust Estate, the
Indenture Trustee may, but need not, obtain and rely upon an opinion of an
Independent investment banking or accounting firm of national reputation as to
the feasibility of such proposed action and as to the sufficiency of the Trust
Estate for such purpose.

          SECTION 5.6     Limitation of Suits. No Holder of any Note shall have
                          -------------------
any right to institute any Proceeding, judicial or otherwise, with respect to
this Indenture, or for the appointment of a receiver or trustee, or for any
other remedy hereunder, unless:

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

                    (ii)  the Holders of not less than 25% of the Outstanding
     Amount of the Voting Notes have made written request to the Indenture
     Trustee to institute such Proceeding in respect of such Event of Default in
     its own name as Indenture Trustee hereunder;

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

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

                    (v)   no direction inconsistent with such written request
     has been given to the Indenture Trustee during such 60-day period by the
     Holders of a majority of the Outstanding Amount of the Voting Notes;
it being understood and intended that no Holder or Holders of Notes shall have
any right in any manner whatsoever by virtue of, or by availing of, any
provision of this Indenture to affect, disturb or prejudice the rights of any
other Holders of Notes or to obtain or to seek to obtain priority or preference
over any other Holders of Notes or to enforce any right under this Indenture,
except in the manner herein provided and for the equal, ratable (on the basis of
the respective aggregate amount of principal and interest, respectively, due and
unpaid on the Notes held by each Noteholder) and common benefit of all
Noteholders. For the protection and enforcement of the provisions of this
Section 5.6, each and every Noteholder shall be entitled to such relief as can
be given either at law or in equity.

                                       27

<PAGE>

            If the Indenture Trustee shall receive conflicting or inconsistent
requests and indemnity from two or more groups of Holders of Notes, each
representing less than a majority of the Outstanding Amount of the Voting Notes,
the Indenture Trustee in its sole discretion may determine what action, if any,
shall be taken, notwithstanding any other provisions of this Indenture.

            SECTION 5.7   Unconditional Rights of Noteholders To Receive
                          ----------------------------------------------
Principal and Interest. Notwithstanding any other provisions in this Indenture,
----------------------
the Holder of any Note shall have the right, which is absolute and
unconditional, to receive payment of the principal of and interest on such Note
on or after the respective due dates thereof expressed in such Note or in this
Indenture (or, in the case of redemption, if applicable, on or after the
Redemption Date) and to institute suit for the enforcement of any such payment,
and such right shall not be impaired without the consent of such Holder.

            SECTION 5.8   Restoration of Rights and Remedies. If the Indenture
                          ----------------------------------
Trustee or any Noteholder has instituted any Proceeding to enforce any right or
remedy under this Indenture and such Proceeding has been discontinued or
abandoned for any reason or has been determined adversely to the Indenture
Trustee or to such Noteholder, then and in every such case the Owner Trustee,
the Owner Trust Estate, the Indenture Trustee and the Noteholders shall, subject
to any determination in such Proceeding, be restored severally to their
respective former positions hereunder, and thereafter all rights and remedies of
the Indenture Trustee and the Noteholders shall continue as though no such
Proceeding had been instituted.

            SECTION 5.9   Rights and Remedies Cumulative. No right or remedy
                          ------------------------------
herein conferred upon or reserved to the Indenture Trustee or to the Noteholders
is intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law
or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

            SECTION 5.10  Delay or Omission Not a Waiver. No delay or omission
                          ------------------------------
of the Indenture Trustee or any Holder of any Note to exercise any right or
remedy accruing upon any Default shall impair any such right or remedy or
constitute a waiver of any such Default or an acquiescence therein. Every right
and remedy given by this Article V or by law to the Indenture Trustee or to the
Noteholders may be exercised from time to time, and as often as may be deemed
expedient, by the Indenture Trustee or by the Noteholders, as the case may be.

            SECTION 5.11  Control by Noteholders. The Holders of a majority of
                          ----------------------
the Outstanding Amount of the Voting Notes shall, subject to provision being
made for indemnification against costs, expenses and liabilities in a form
satisfactory to the Indenture Trustee, have the right to direct the time, method
and place of conducting any Proceeding for any remedy available to the Indenture
Trustee with respect to the Notes or exercising any trust or power conferred on
the Indenture Trustee; provided, however, that:
                       --------  -------

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

                                       28

<PAGE>

                    (ii) subject to the express terms of Section 5.4, any
     direction to the Indenture Trustee to sell or liquidate the Trust Estate
     shall be by the Holders of Notes representing 100% of the Outstanding
     Amount of the Notes;

                    (iii) if the conditions set forth in Section 5.5 have been
     satisfied and the Indenture Trustee elects to retain the Trust Estate
     pursuant to Section 5.5, then any direction to the Indenture Trustee by
     Holders of Notes representing less than 100% of the Outstanding Amount of
     the Notes to sell or liquidate the Trust Estate shall be of no force and
     effect; and

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

provided, however, that, subject to Section 6.1, the Indenture Trustee need not
--------  -------
take any action that it determines might cause it to incur any liability (a)
with respect to which the Indenture Trustee shall have reasonable grounds to
believe that adequate indemnity against such liability in not assured to it and
(b) which might materially adversely affect the rights of any Noteholders not
consenting to such action.

            SECTION 5.12  Waiver of Past Defaults.
                          -----------------------

            (a)   Prior to the declaration of the acceleration of the
maturity of the Notes as provided in Section 5.2(a), the Holders of not less
than a majority of the Outstanding Amount of the Voting Notes may waive any past
Default and its consequences except a Default (i) in the payment of principal of
or interest on any of the Notes or (ii) in respect of a covenant or provision
hereof which cannot be modified or amended without the consent of the Holder of
each Note. In the case of any such waiver, the Owner Trustee, the Owner Trust
Estate, the Indenture Trustee and the Noteholders shall be restored to their
respective former positions and rights hereunder; but no such waiver shall
extend to or affect any subsequent or other Default or impair any right
consequent thereto.

            (b)   Upon any such waiver, such Default shall cease to exist and be
deemed to have been cured and not to have occurred, and any Event of Default
arising therefrom shall be deemed to have been cured and not to have occurred,
for every purpose of this Indenture and for purposes of Section 8.01(b) of the
Pooling and Servicing Agreement; but no such waiver shall extend to or affect
any subsequent or other Default or impair any right consequent thereto.

            SECTION 5.13  Undertaking for Costs. All parties to this Indenture
                          ---------------------
agree, and each Holder of any Note by such Holder's acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, in any
Proceeding for the enforcement of any right or remedy under this Indenture, or
in any Proceeding against the Indenture Trustee for any action taken, suffered
or omitted by it as Trustee, the filing by any party litigant in such Proceeding
of an undertaking to pay the costs of such Proceeding, and that such court may
in its discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such Proceeding, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; but the
provisions of this Section 5.13 shall not apply to:

                                       29

<PAGE>

            (a)   any Proceeding instituted by the Indenture Trustee;

            (b)   any Proceeding instituted by any Noteholder, or group of
Noteholders, in each case holding in the aggregate more than 10% of the
Outstanding Amount of the Voting Notes; or

            (c)   any Proceeding instituted by any Noteholder for the
enforcement of the payment of principal of or interest on any Note on or after
the respective due dates expressed in such Note and in this Indenture (or, in
the case of redemption, on or after the Redemption Date).

            SECTION 5.14  Waiver of Stay or Extension Laws. The Owner Trustee
                          --------------------------------
covenants (to the extent that it may lawfully do so) that it shall not at any
time insist upon, or plead or in any manner whatsoever, claim or take the
benefit or advantage of, any stay or extension law wherever enacted, now or at
any time hereafter in force, that may adversely affect the covenants or the
performance of this Indenture. The Owner Trustee (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it shall not hinder, delay or impede the execution of
any power herein granted to the Indenture Trustee, but shall suffer and permit
the execution of every such power as though no such law had been enacted.

            SECTION 5.15  Action on Notes. The Indenture Trustee's right to seek
                          ---------------
and recover judgment on the Notes or under this Indenture shall not be affected
by the seeking, obtaining or application of any other relief under or with
respect to this Indenture. Neither the lien of this Indenture nor any rights or
remedies of the Indenture Trustee or the Noteholders shall be impaired by the
recovery of any judgment by the Indenture Trustee against the Owner Trustee or
the Owner Trust Estate or by the levy of any execution under such judgment upon
any portion of the Trust Estate or upon any of the assets of the Owner Trust
Estate. Any money or property collected by the Indenture Trustee shall be
applied in accordance with Section 5.4(b).

            SECTION 5.16  Performance and Enforcement of Certain Obligations.
                          --------------------------------------------------

            (a)   Promptly following a request from the Indenture Trustee to do
so and at the Administrator's expense, the Owner Trustee agrees to take all such
lawful action as the Indenture Trustee may request to compel or secure the
performance and observance by the Seller and the Servicer of their respective
obligations to the Owner Trustee under or in connection with the Pooling and
Servicing Agreement and the Purchase Agreement or by NFC of its obligations
under or in connection with the Purchase Agreement in accordance with the terms
thereof or by any obligor under the Interest Rate Swap of its obligations under
or in accordance with the Interest Rate Swap in accordance with the terms
thereof, and to exercise any and all rights, remedies, powers and privileges
lawfully available to the Owner Trustee under or in connection with the Pooling
and Servicing Agreement, the Purchase Agreement and the Interest Rate Swap to
the extent and in the manner directed by the Indenture Trustee, including the
transmission of notices of default on the part of the Seller, the Servicer, NFC
or any obligor under the Interest Rate Swap thereunder and the institution of
legal or administrative actions or proceedings to compel or secure performance
by the Seller, the Servicer, NFC or any obligor under the Interest Rate Swap of
each of their respective obligations under the Pooling and Servicing Agreement,
the Purchase Agreement and the Interest Rate Swap.

            (b)   If an Event of Default has occurred and is continuing, the
Indenture Trustee

                                       30

<PAGE>

may, and, at the direction (which direction shall be in writing or by telephone
(confirmed in writing promptly thereafter)) of the Holders of 66-2/3% of the
Outstanding Amount of the Voting Notes shall, exercise all rights, remedies,
powers, privileges and claims of the Owner Trustee against the Seller, the
Servicer or any obligor under the Interest Rate Swap under or in connection with
the Pooling and Servicing Agreement and the Purchase Agreement, including the
right or power to take any action to compel or secure performance or observance
by the Seller or the Servicer of each of their obligations to the Owner Trustee
thereunder and to give any consent, request, notice, direction, approval,
extension or waiver under the Pooling and Servicing Agreement, the Purchase
Agreement and the Interest Rate Swap, and any right of the Owner Trustee to take
such action shall be suspended.

          (c) [Reserved.]

          (d) If an Event of Default has occurred and is continuing, the
Indenture Trustee may, and, at the direction (which direction shall be in
writing or by telephone (confirmed in writing promptly thereafter)) of the
Holders of 66-2/3% of the Outstanding Amount of the Voting Notes shall, exercise
all rights, remedies, powers, privileges and claims of the Seller against NFC
under or in connection with the Purchase Agreement, including the right or power
to take any action to compel or secure performance or observance by NFC of each
of its obligations to the Seller thereunder and to give any consent, request,
notice, direction, approval, extension or waiver under the Purchase Agreement,
and any right of the Seller to take such action shall be suspended.

                                   ARTICLE VI
                              THE INDENTURE TRUSTEE

          SECTION 6.1     Duties of Indenture Trustee.
                          ---------------------------

          (a) If an Event of Default has occurred and is continuing, the
Indenture Trustee shall exercise the rights and powers vested in it by this
Indenture and use the same degree of care and skill in their exercise as a
prudent person would exercise or use under the circumstances in the conduct of
such person's own affairs.

          (b) Except during the continuance of an Event of Default:

                  (i)   the Indenture Trustee undertakes to perform such duties
     and only such duties as are specifically set forth in this Indenture and
     the Pooling and Servicing Agreement and no implied covenants or obligations
     shall be read into this Indenture, the Pooling and Servicing Agreement or
     any other Basic Document against the Indenture Trustee; and

                  (ii)  in the absence of bad faith on its part, the Indenture
     Trustee may conclusively rely, as to the truth of the statements and the
     correctness of the opinions expressed therein, upon certificates or
     opinions furnished to the Indenture Trustee and conforming to the
     requirements of this Indenture; provided, however, that the Indenture
                                     --------  -------
     Trustee shall examine the certificates and opinions to determine whether or
     not they conform to any applicable requirements of this Indenture.

                                       31

<PAGE>

          (c) The Indenture Trustee may not be relieved from liability for its
own negligent action, its own negligent failure to act or its own wilful
misconduct, except that:

               (i)   this Section 6.1(c) does not limit the effect of Section
     6.1(b);

               (ii)  the Indenture Trustee shall not be liable for any error of
     judgment made in good faith by a Responsible Officer unless it is proved
     that the Indenture Trustee was negligent in ascertaining the pertinent
     facts; and

               (iii) the Indenture Trustee shall not be liable with respect to
     any action it takes or omits to take in good faith in accordance with a
     direction received by it pursuant to Section 5.11.

          (d) The Indenture Trustee shall not be liable for interest on any
money received by it except as the Indenture Trustee may agree in writing with
the Owner Trustee.

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

          (f) No provision of this Indenture shall require the Indenture Trustee
to expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties hereunder or in the exercise of any of its
rights or powers, if it shall have reasonable grounds to believe that repayments
of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it.

          (g) The Indenture Trustee shall reimburse the Seller and any director,
officer, employee or agent of the Seller for any contractual damages, liability
or expense incurred by reason of the Indenture Trustee's willful misfeasance,
bad faith or gross negligence (except errors in judgment) in the performance of
its duties under any of the Further Transfer and Servicing Agreements, or by
reason of reckless disregard of its obligations and duties under any of the
Further Transfer and Servicing Agreements.

          (h) Every provision of this Indenture relating to the Indenture
Trustee shall be subject to the provisions of this Section 6.1 and to the
provisions of the TIA.

          SECTION 6.2      Rights of Indenture Trustee.
                           ---------------------------

          (a) The Indenture Trustee may rely on any document believed by it to
be genuine and to have been signed or presented by the proper Person. The
Indenture Trustee need not investigate any fact or matter stated in the
document.

          (b) Before the Indenture Trustee acts or refrains from acting, it may
require an Officer's Certificate from the Owner Trustee or an Opinion of Counsel
that such action or omission is required or permissible hereunder. The Indenture
Trustee shall not be liable for any

                                       32

<PAGE>

action it takes or omits to take in good faith in reliance on such Officer's
Certificate or Opinion of Counsel.

          (c)    The Indenture Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through
agents or attorneys or a custodian or nominee, and the Indenture Trustee shall
not be responsible for any misconduct or negligence on the part of, or for the
supervision of, any such agent, attorney, custodian or nominee appointed with
due care by it hereunder.

          (d)    The Indenture Trustee shall not be liable for any action it
takes or omits to take in good faith which it believes to be authorized or
within its rights or powers; provided, however, that the Indenture Trustee's
                             --------  -------
conduct does not constitute wilful misconduct, negligence or bad faith.

          (e)    The Indenture Trustee may consult with counsel, and the advice
or opinion of counsel with respect to legal matters relating to this Indenture
and the Notes shall be full and complete authorization and protection from
liability in respect to any action taken, omitted or suffered by it hereunder in
good faith and in accordance with the advice or opinion of such counsel.

          SECTION 6.3    Indenture Trustee May Own Notes.  The Indenture
                         -------------------------------
Trustee in its individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Owner Trustee, the Servicer or any of
their respective Affiliates with the same rights it would have if it were not
Indenture Trustee; provided, however, that the Indenture Trustee shall comply
                   --------  -------
with Sections 6.10 and 6.11. Any Paying Agent, Note Registrar, co-registrar or
co-paying agent may do the same with like rights.

           SECTION 6.4   Indenture Trustee's Disclaimer. The Indenture Trustee
                         ------------------------------
shall not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Notes, it shall not be accountable for the
Owner Trustee's use of the proceeds from the Notes, and it shall not be
responsible for any statement of the Owner Trustee in the Indenture or in any
document issued in connection with the sale of the Notes or in the Notes other
than the Indenture Trustee's certificate of authentication.

          SECTION 6.5    Notice of Defaults. If a Default occurs and is
                         ------------------
continuing and if it is known to a Responsible Officer of the Indenture Trustee,
the Indenture Trustee shall mail to each Noteholder notice of the Default within
30 days after such Responsible Officer obtained knowledge of such Default.
Except in the case of a Default in payment of principal of or interest on any
Note, the Indenture Trustee may withhold the notice if and so long as a
committee of its Responsible Officers in good faith determines that withholding
the notice is in the interests of Noteholders.

          SECTION 6.6    Reports by Indenture Trustee to Holders. The Indenture
                         ---------------------------------------
in those are what oolyTrustee shall deliver to each Noteholder the information
and documents set forth in Article VII, and, in addition, all such information
with respect to the Notes as may be required, as specified by the Servicer, to
enable such Holder to prepare its federal and state income tax returns.

                                       33

<PAGE>
          SECTION 6.7    Compensation; Indemnity.
                          -----------------------

          (a) The Owner Trustee shall cause the Servicer pursuant to the Pooling
and Servicing Agreement to pay to the Indenture Trustee from time to time such
compensation for its services as shall be agreed upon in writing. The Indenture
Trustee's compensation shall not be limited by any law on compensation of a
trustee of an express trust. The Owner Trustee shall cause the Servicer pursuant
to the Pooling and Servicing Agreement to reimburse the Indenture Trustee for
all reasonable out-of-pocket expenses incurred or made by it, including costs of
collection, in addition to the compensation for its services. Such expenses
shall include the reasonable compensation and expenses, disbursements and
advances of the Indenture Trustee's agents, counsel, accountants and experts.
The Owner Trustee shall cause the Servicer pursuant to the Pooling and Servicing
Agreement to indemnify the Indenture Trustee in accordance with Section 7.01 of
the Pooling and Servicing Agreement.

          (b) The Owner Trustee's obligations to the Indenture Trustee pursuant
to this Section 6.7 shall survive the discharge of this Indenture. When the
Indenture Trustee incurs expenses after the occurrence of a Default specified in
Section 5.1(e) or (f) the expenses are intended to constitute expenses of
administration under Title 11 of the United States Code or any other applicable
federal or state bankruptcy, insolvency or similar law.

          SECTION 6.8    Replacement of Indenture Trustee.
                          --------------------------------

          (a) The Indenture Trustee may at any time give notice of its intent to
resign by so notifying the Owner Trustee; provided, however, that no such
                                          --------  -------
resignation shall become effective and the Indenture Trustee shall not resign
prior to the time set forth in Section 6.8(c). The Holders of a majority in
Outstanding Amount of the Voting Notes may remove the Indenture Trustee by so
notifying the Indenture Trustee and may appoint a successor Indenture Trustee.
Such resignation or removal shall become effective in accordance with Section
6.8(c). The Owner Trustee shall remove the Indenture Trustee if:

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

                 (ii)  the Indenture Trustee is adjudged a bankrupt or
     insolvent;

                 (iii) a receiver or other public officer takes charge of the
     Indenture Trustee or its property; or

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

          (b) If the Indenture Trustee gives notice of its intent to resign or
is removed or if a vacancy exists in the office of the Indenture Trustee for any
reason (the Indenture Trustee in such event being referred to herein as the
retiring Indenture Trustee), the Owner Trustee shall promptly appoint and
designate a successor Indenture Trustee.

          (c) A successor Indenture Trustee shall deliver a written acceptance
of its appointment and designation to the retiring Indenture Trustee and to the
Owner Trustee. Thereupon

                                       34

<PAGE>

the resignation or removal of the retiring Indenture Trustee shall become
effective, and the successor Indenture Trustee shall have all the rights, powers
and duties of the Indenture Trustee under this Indenture. The successor
Indenture Trustee shall mail a notice of its succession to Noteholders and to
each of the Rating Agencies. The retiring Indenture Trustee shall promptly
transfer all property held by it as Indenture Trustee to the successor Indenture
Trustee.

          (d)  If a successor Indenture Trustee does not take office within 60
days after the retiring Indenture Trustee gives notice of its intent to resign
or is removed, the retiring Trustee, the Owner Trustee or the Holders of a
majority of the Outstanding Amount of the Voting Notes may petition any court of
competent jurisdiction for the appointment and designation of a successor
Indenture Trustee.

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

          (f)  Notwithstanding the replacement of the Indenture Trustee pursuant
to this Section 6.8, the Owner Trustee's obligations under Section 6.7 and the
Servicer's corresponding obligations under the Pooling and Servicing Agreement
shall continue for the benefit of the retiring Indenture Trustee.

          SECTION 6.9      Merger or Consolidation of Indenture Trustee.
                            --------------------------------------------

          (a)  Any Person into which the Indenture Trustee may be merged or with
which it may be consolidated, or any Person resulting from any merger or
consolidation to which the Indenture Trustee shall be a party, or any
corporation succeeding to the corporate trust business of the Indenture Trustee,
shall be the successor of the Indenture Trustee under this Indenture; provided,
                                                                      --------
however, that such Person shall be eligible under the provisions of Section
6.11, without the execution or filing of any instrument or any further act on
the part of any of the parties to this Indenture, anything in this Indenture to
the contrary notwithstanding. Following such merger or consolidation, the
successor Indenture Trustee shall mail a notice of such merger or consolidation
to each of the Rating Agencies.

          (b)  If at the time such successor or successors by merger or
consolidation to the Indenture Trustee shall succeed to the trusts created by
this Indenture, any of the Notes shall have been authenticated but not
delivered, any such successor to the Indenture Trustee may adopt the certificate
of authentication of any predecessor trustee, and deliver such Notes so
authenticated; and in case at that time any of the Notes shall not have been
authenticated, any successor to the Indenture Trustee may authenticate such
Notes either in the name of any predecessor hereunder or in the name of the
successor to the Indenture Trustee. In all such cases such certificate of
authentication shall have the same full force as is provided anywhere in the
Notes or herein with respect to the certificate of authentication of the
Indenture Trustee.

                                       35

<PAGE>

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

          (a)  Notwithstanding any other provisions of this Indenture, at any
time, for the purpose of meeting any legal requirement of any jurisdiction in
which any part of the Trust Estate or any Financed Vehicle may at the time be
located, the Indenture Trustee shall have the power and may execute and deliver
all instruments to appoint one or more Persons to act as a co-trustee or
co-trustees, or separate trustee or separate trustees, of all or any part of the
Trust Estate, and to vest in such Person or Persons, in such capacity and for
the benefit of the Noteholders and (only to the extent expressly provided
herein) the Certificateholders, such title to the Trust Estate, or any part
hereof, and, subject to the other provisions of this Section 6.10, such powers,
duties, obligations, rights and trusts as the Indenture Trustee may consider
necessary or desirable. No co-trustee or separate trustee hereunder shall be
required to meet the terms of eligibility as a successor trustee under Section
6.11 and no notice to Noteholders of the appointment of any co-trustee or
separate trustee shall be required under Section 6.8.

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

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

                (ii)  no trustee hereunder shall be personally liable by reason
     of any act or omission of any other trustee hereunder; and

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

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

                                       36

<PAGE>

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

     SECTION 6.11   Eligibility; Disqualification.
                     -----------------------------

     (a) The Indenture Trustee shall at all times satisfy the requirements of
TIA (S) 310(a). The Indenture Trustee shall have a combined capital and surplus
of at least $50,000,000 as set forth in its most recent published annual report
of condition and (unless waived by Moody's) it shall have a long term unsecured
debt rating of Baa3 or better by Moody's Investors Service, Inc. The Indenture
Trustee shall comply with TIA (S) 310(b); provided, however, that there shall be
                                          --------  -------
excluded from the operation of TIA (S) 310(b)(1) any indenture or indentures
under which other securities of the Owner Trustee are outstanding if the
requirements for such exclusion set forth in TIA (S) 310(b)(1) are met.

     (b) If a Default occurs and is continuing, and the Indenture Trustee is
deemed to have a conflicting interest as a result of acting as trustee for both
the Class A Notes and the Class B Notes, the Owner Trustee shall appoint a
successor Indenture Trustee for one or both of such classes, so that there will
be separate Indenture Trustees for the Class A Notes and the Class B Notes. No
such event shall alter the voting rights of the Class A Noteholders or Class B
Noteholders under this Indenture or any other Basic Document. However, so long
as any amounts remain unpaid with respect to the Class A Notes, only the
Indenture Trustee for the Class A Noteholders will have the right to exercise
remedies under this Indenture (but subject to the express provisions of Section
5.4 and to the right of the Class B Noteholders to receive their share of any
proceeds of enforcement, subject to the subordination of the Class B Notes to
the Class A Notes as described herein) to make deposits to and withdrawals from
the Designated Accounts, hold Designated Account Property and to make
distributions to Noteholders from the Note Distribution Account. Upon repayment
of the Class A Notes in full, all rights to exercise remedies under the
Indenture will transfer to the Indenture Trustee for the Class B Notes.

     (c) In the case of the appointment hereunder of a successor Indenture
Trustee with respect to any class of Notes, the Owner Trustee, the retiring
Indenture Trustee and the successor Indenture Trustee with respect to such class
of Notes shall execute and deliver an indenture supplemental hereto wherein the
successor Indenture Trustee shall accept such appointment and which (i) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, the successor Indenture Trustee all the rights,
powers, trusts and duties of the retiring Indenture Trustee with respect to the
Notes of the class to which the appointment of such successor Indenture Trustee
relates, (ii) if the retiring Indenture Trustee is not retiring with respect to
all classes of Notes, shall contain such provisions as shall be deemed necessary
or desirable to confirm that all the rights, powers, trusts and duties of the
retiring Indenture Trustee with respect to the Notes of each class as to which
the retiring Indenture Trustee is not retiring shall continue to be vested in
the retiring Indenture Trustee, and (iii) shall add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than

                                       37

<PAGE>

one Indenture Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Indenture Trustees co-trustees of
the same trust and that each such Indenture Trustee shall be trustee of a trust
or trusts hereunder separate and apart from any trust or trusts hereunder
administered by any other such Indenture Trustee; and upon the execution and
delivery of such supplemental indenture the resignation or removal of the
retiring Indenture Trustee shall become effective to the extent provided
therein.

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

     SECTION 6.13  Representations and Warranties of Indenture Trustee. The
                    ---------------------------------------------------
Indenture Trustee represents and warrants as of the Closing Date that:

     (a) the Indenture Trustee is a New York banking corporation duly organized,
validly existing and in good standing under the laws of the State of New York
and the eligibility requirements set forth in Section 6.11 are satisfied with
respect to the Indenture Trustee;

     (b) the Indenture Trustee has full power, authority and legal right to
execute, deliver and perform this Indenture, and has taken all necessary action
to authorize the execution, delivery and performance by it of this Indenture;

     (c) the execution, delivery and performance by the Indenture Trustee of
this Indenture (i) shall not violate any provision of any law or regulation
governing the banking and trust powers of the Indenture Trustee or any order,
writ, judgment or decree of any court, arbitrator, or governmental authority
applicable to the Indenture Trustee or any of its assets, (ii) shall not violate
any provision of the corporate charter or by-laws of the Indenture Trustee or
(iii) shall not violate any provision of, or constitute, with or without notice
or lapse of time, a default under, or result in the creation or imposition of
any lien on any properties included in the Trust Estate pursuant to the
provisions of any mortgage, indenture, contract, agreement or other undertaking
to which it is a party, which violation, default or lien could reasonably be
expected to have a materially adverse effect on the Indenture Trustee's
performance or ability to perform its duties under this Indenture or on the
transactions contemplated in this Indenture;

     (d) the execution, delivery and performance by the Indenture Trustee of
this Indenture shall not require the authorization, consent or approval of, the
giving of notice to, the filing or registration with, or the taking of any other
action in respect of, any governmental authority or agency regulating the
banking and corporate trust activities of the Indenture Trustee; and

     (e) this Indenture has been duly executed and delivered by the Indenture
Trustee and constitutes the legal, valid and binding agreement of the Indenture
Trustee, enforceable in accordance with its terms.

     SECTION 6.14  Indenture Trustee May Enforce Claims Without Possession of
                    ----------------------------------------------------------
Notes. All rights of action and claims under this Indenture or the Notes may be
-----
prosecuted and

                                       38

<PAGE>

enforced by the Indenture Trustee without the possession of any of the Notes or
the production thereof in any proceeding relating thereto, and any such
proceeding instituted by the Indenture Trustee shall be brought in its own name
as Indenture Trustee. Any recovery of judgment shall, after provision for the
payment of the reasonable compensation, expenses, disbursements and advances of
the Indenture Trustee, its agents and counsel, be for the ratable benefit of the
Noteholders and (only to the extent expressly provided herein) the
Certificateholders in respect of which such judgment has been obtained.

     SECTION 6.15 Suit for Enforcement. If an Event of Default shall occur and
                   --------------------
be continuing, the Indenture Trustee in its discretion may, subject to the
provisions of Section 6.1, proceed to protect and enforce its rights and the
rights of the Noteholders under this Indenture by a Proceeding whether for the
specific performance of any covenant or agreement contained in this Indenture or
in aid of the execution of any power granted in this Indenture or for the
enforcement of any other legal, equitable or other remedy as the Indenture
Trustee, being advised by counsel, shall deem most effectual to protect and
enforce any of the rights of the Indenture Trustee or the Noteholders.

     SECTION 6.16 Rights of Noteholders to Direct Indenture Trustee. Holders of
                   -------------------------------------------------
Notes evidencing not less than a majority of the Outstanding Amount of the
Voting Notes shall have the right to direct in writing the time, method and
place of conducting any Proceeding for any remedy available to the Indenture
Trustee or exercising any trust or power conferred on the Indenture Trustee;
provided, however, that subject to Section 6.1, the Indenture Trustee shall have
--------  -------
the right to decline to follow any such direction if the Indenture Trustee being
advised by counsel determines that the action so directed may not lawfully be
taken, or if the Indenture Trustee in good faith shall, by Responsible Officer,
determine that the proceedings so directed would be illegal or subject it to
personal liability or be unduly prejudicial to the rights of Noteholders not
parties to such direction; and provided, further, that nothing in this Indenture
                               --------  -------
shall impair the right of the Indenture Trustee to take any action deemed proper
by the Indenture Trustee and which is not inconsistent with such direction by
the Noteholders.

                                   ARTICLE VII
                         NOTEHOLDERS' LISTS AND REPORTS

     SECTION 7.1 Owner Trustee To Furnish Indenture Trustee Names and
                   ----------------------------------------------------
Addresses of Noteholders. The Owner Trustee shall furnish or cause to be
------------------------
furnished by the Servicer to the Indenture Trustee (a) not more than five days
before each Distribution Date, a list, in such form as the Indenture Trustee may
reasonably require, of the names and addresses of the Holders of Notes as of the
close of business on the Record Date, and (b) at such other times as the
Indenture Trustee may request in writing, within 14 days after receipt by the
Owner Trustee of any such request, a list of similar form and content as of a
date not more than 10 days prior to the time such list is furnished; provided,
                                                                     --------
however, that so long as the Indenture Trustee is the Note Registrar, no such
-------
list shall be required to be furnished.

                                       39

<PAGE>

          SECTION 7.2 Preservation of Information, Communications to
                        ----------------------------------------------
Noteholders.
-----------

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

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

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

          SECTION VII.3 Reports by Owner Trustee.
                        ------------------------

          (a)  The Owner Trustee shall:

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

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

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

          (b)  Unless the Owner Trustee otherwise determines,  the fiscal year
of the Trust shall end on October 31 of each year.

                                       40

<PAGE>

          SECTION 7.4  Reports by Indenture Trustee.
                       ----------------------------

          (a) If required by TIA (S) 313(a), within 60 days after each February
1, beginning with February 1, 2003, the Indenture Trustee shall mail to each
Noteholder as required by TIA (S) 313(c) a brief report dated as of such date
that complies with TIA (S) 313(a). The Indenture Trustee also shall comply with
TIA (S) 313(b). A copy of any report delivered pursuant to this Section 7.4(a)
shall, at the time of its mailing to Noteholders, be filed by the Indenture
Trustee with the Commission and each stock exchange, if any, on which the Notes
are listed. The Owner Trustee shall notify the Indenture Trustee if and when the
Notes are listed on any stock exchange.

          (b) On each Distribution Date, the Indenture Trustee shall include
with each payment to each Noteholder a copy of the statement for the related
Monthly Period as required pursuant to Section 4.09 of the Pooling and Servicing
Agreement.

                                  ARTICLE VIII
                      ACCOUNTS, DISBURSEMENTS AND RELEASES

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

          SECTION 8.2  Designated Accounts; Payments.
                       -----------------------------

          (a) On or prior to the Closing Date, the Owner Trustee shall cause the
Servicer to establish and maintain, in the name of the Indenture Trustee, for
the benefit of the Financial Parties, the Designated Accounts as provided in
Articles IV and V of the Pooling and Servicing Agreement.

          (b) Before each Distribution Date, the Indenture Trustee shall cause
all withdrawals, deposits, transfers and distributions provided for in Section
4.06(b) and Section 5.02(b) of the Pooling and Servicing Agreement to be made.
Before each Distribution Date, the Indenture Trustee shall make the
distributions from the Collection Account provided for in Section 4.06(c) of the
Pooling and Servicing Agreement. Notwithstanding the preceding sentence, to the
extent permitted and as provided by Section 4.08 of the Pooling and Servicing
Agreement, deposits may be netted against amounts owing to the depositor.

          (c) On each Distribution Date, the Indenture Trustee shall distribute
all amounts

                                       41

<PAGE>

on deposit in the Note Distribution Account, other than amounts deposited in the
Note Distribution Account pursuant to Section 5.02(b) of the Pooling and
Servicing Agreement and subject to the Certificateholder's rights under Section
5.05 of the Pooling and Servicing Agreement to Investment Earnings, to the
Noteholders to the extent of amounts due and unpaid on the Notes for principal
and interest, in the following amounts, and in the following order of priority:

          (i)   (A) first, to accrued and unpaid interest on the Class A Notes;
     provided, however, that if there are not sufficient funds in the Note
     --------  -------
     Distribution Account to pay the entire amount of accrued and unpaid
     interest then due on the Class A Notes, the amount in the Note Distribution
     Account shall be applied to the payment of such interest on each Note of
     each class of the Class A Notes pro rata on the basis of the respective
     aggregate amount of interest due on each such class of Class A Notes; and
     (B) second, unless otherwise provided in clause (iv) below, to accrued and
     unpaid interest on the Class B Notes; provided, however, that if there are
                                           --------  -------
     not sufficient funds in the Note Distribution Account (after the payment of
     all accrued and unpaid interest on the Class A Notes) to pay the entire
     amount of accrued and unpaid interest then due on the Class B Notes, the
     amount in the Note Distribution Account shall be applied to the payment of
     such interest on each of the Class B Notes pro rata on the basis of the
     aggregate amount of interest due on each such Class B Note;

          (ii)  unless otherwise provided in clause (iii), (iv) or (v) below,
     the Principal Payment Amount shall be applied on each Distribution Date, as
     follows:

                (A) first, 100% of the Principal Payment Amount shall be applied
          to pay the principal of the Class A-1 Notes until the Class A-1 Notes
          are paid in full;

                (B) thereafter, 96.25% of the Principal Payment Amount (in the
          case of the Distribution Date on which the Class A-1 Notes are paid in
          full, 96.25% of the remaining Principal Payment Amount) shall be
          applied to pay the principal of the other Class A Notes (all of which
          shall be applied to pay the principal of the Class A-2 Notes until
          paid in full, then shall be applied to pay the principal of the Class
          A-3 Notes until paid in full, and then shall be applied to pay the
          principal of the Class A-4 Notes until paid in full) and 3.75% of the
          Principal Payment Amount (in the case of the Distribution Date on
          which the Class A-1 Notes are paid full, 3.75% of the remaining
          Principal Payment Amount) shall be applied to pay the principal of the
          Class B Notes until the Class A Notes are paid in full; and

                (C) thereafter, 100% of the Principal Payment Amount (in the
          case of the Distribution Date on which the Class A Notes are paid in
          full, the remaining Principal Payment Amount) to the Class B Notes
          until the Class B Notes are paid in full;

          (iii) if the amount on deposit in the Reserve Account on any
     Distribution Date would be, after giving effect to the application of the
     Principal Payment Amount in accordance with the foregoing priorities, less
     than 1.0% of the Initial Aggregate Receivables Balance, then on each
     Distribution Date thereafter until either the Class A Notes are paid in

                                       42

<PAGE>

     full or the amount on deposit in the Reserve Account equals or exceeds the
     Specified Reserve Account Balance, 100% of the Principal Payment Amount
     shall be applied on each Distribution Date to pay the principal of the
     Class A Notes (all of which shall be applied to pay the principal of the
     Class A-1 Notes until paid in full, then shall be applied to pay the
     principal of the Class A-2 Notes until paid in full, then shall be applied
     to pay the principal of Class A-3 Notes until paid in full, and then shall
     be applied to pay the principal of the Class A-4 Notes until paid in full).
     When principal payments on the Class B Notes resume in accordance with the
     preceding sentence, the Principal Payment Amount for such Distribution Date
     shall be applied in accordance with Section 8.2(c)(ii) hereof until the
     Class A Notes have been paid in full, and thereafter 100% of the Principal
     Payment Amount for such Distribution Date shall be applied to pay the
     principal of the Class B Notes until the Class B Notes are paid in full;

               (iv) if the Notes have been declared immediately due and payable
     as provided in Section 5.2(a) following the occurrence of an Event of
     Default specified in Section 5.1(a), (b) or (c) until such time as the
     Class A Notes have been paid in full and this Indenture has been discharged
     with respect to the Class A Notes any amounts remaining in the Note
     Distrdibution Account after the application described in Section
     8.2(c)(i)(A) shall be applied in the following priority: (1) to the
     repayment of principal of each of the Class A-1 Notes pro rata on the basis
     of the respective unpaid principal amount of each such Class A-1 Note; (2)
     to the repayment of principal of each of the Class A-2 Notes, the Class A-3
     Notes and the Class A-4 Notes pro rata on the basis of the respective
     unpaid principal amount of each such Class A Note; (3) to the repayment of
     interest on each of the Class B Notes pro rata on the basis of the amount
     of interest due and unpaid on each such Class B Note and (4) to the
     repayment of principal on each of the Class B Notes pro rata on the basis
     of the respective unpaid principal amount of each such Class B Note; and

               (v ) if the Notes have been declared immediately due and payable
     as provided in Section 5.2(a) following the occurrence of an Event of
     Default specified in Section 5.1(d), (e) or (f), 100% of the Principal
     Payment Amount shall be applied on each Distribution Date to the payment of
     principal of the Class A-1 Notes on the basis of the respective unpaid
     principal balance of each such Class A-1 Note, thereafter 100% of the
     Principal Payment Amount shall be applied on each Distribution Date to the
     payment of principal of the Class A-2 Notes, the Class A-3 Notes and the
     Class A-4 Notes pro rata on the basis of the resp   e unpaid principal
     amount of each such Class A Note, and, thereafter, 100% of the Principal
     Payment Amount shall be applied on each Distribution Date to the payment of
     principal of the Class B Notes pro rata on the basis of the respective
     unpaid principal amount of each such Class B Note.

           (d) Subject to Sections 8.2(c)(iii), (iv) and (v), on the
Distribution Date on which the Funding Period ends (or, if the Funding Period
does not end on a Distribution Date, on the Distribution Date following the end
of the Funding Period), the Indenture Trustee shall apply any and all amounts
deposited into the Note Distribution Account pursuant to Section 5.02(b) of the
Pooling and Servicing Agreement (other than Noteholders' Prepayment Premium) to
the repayment of principal on the Notes in accordance with the priorities set
forth in Section 8.2(c)(ii); provided, however, that if the Pre-Funded Amount as
of the end of the Funding Period is greater than

                                       43

<PAGE>

$100,000, the Indenture Trustee shall apply such amounts to the repayment of
principal of each Class of Notes pro rata on the basis of the respective initial
principal amount of each such Class of Notes, as instructed by Servicer in
writing.

          (e) On the Distribution Date on which the Funding Period ends (or, if
the Funding Period does not end on a Distribution Date, on the first
Distribution Date following the end of the Funding Period), the Indenture
Trustee shall distribute to the Noteholders the Noteholders' Prepayment Premiums
deposited in the Note Distribution Account, as instructed by Servicer in writing
pursuant to Section 5.02(b) of the Pooling and Servicing Agreement; provided,
                                                                    ---------
however, if less than the required Noteholders' Prepayment Premium for all
-------
classes of Notes has been deposited into the Note Distribution Account, the
amount distributable to the holders of each class of Notes shall be their
ratable share of the amount so deposited into the Note Distribution Account
based upon the amount of Noteholders' Prepayment Premium due with respect to
each class of Notes. In either case, the Indenture Trustee shall distribute the
Noteholders' Prepayment Premium allocated to each class of Notes to the
Noteholders of such class of Notes pro rata on the basis of the unpaid principal
amount of such Noteholder's Notes of such class, as instructed by Servicer in
writing.

          SECTION 8.3 General Provisions Regarding Accounts.
                      -------------------------------------

          (a) Subject to Section 6.1(c), the Indenture Trustee shall not in any
way be held liable by reason of any insufficiency in any of the Designated
Accounts resulting from any loss on any Eligible Investment included therein
except for losses attributable to the Indenture Trustee's 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.

          (b) If (i) the Servicer shall have failed to give investment
directions for any funds on deposit in the Designated Accounts to the Indenture
Trustee by 11:00 a.m., New York City time (or such other time as may be agreed
by the Servicer and the Indenture Trustee) on any Business Day; or (ii) a
Default shall have occurred and be continuing with respect to the Notes but the
Notes shall not have been declared due and payable pursuant to Section 5.2(a),
or, if such Notes shall have been declared due and payable following an Event of
Default, but amounts collected or receivable from the Trust Estate are being
applied in accordance with Section 5.5 as if there had not been such a
declaration; then the Indenture Trustee shall, to the fullest extent
practicable, invest and reinvest funds in the Designated Accounts in one or more
Eligible Investments selected by the Indenture Trustee.

          SECTION 8.4 Release of Trust Estate.
                      -----------------------

          (a) Subject to the payment of its fees and expenses pursuant to
Section 6.7, the Indenture Trustee may, and when required by the provisions of
this Indenture shall, execute instruments to release property in the Trust
Estate from the lien of this Indenture, or convey the Indenture Trustee's
interest in the same, in a manner and under circumstances that are consistent
with the provisions of this Indenture. No party relying upon an instrument
executed by the Indenture Trustee as provided in this Article VIII shall be
bound to ascertain the Indenture Trustee's authority, inquire into the
satisfaction of any conditions precedent or see to the application of any
monies.

          (b) The Indenture Trustee shall, at such time as there are no Notes
Outstanding

                                       44

<PAGE>

and all sums due to the Indenture Trustee pursuant to Section 6.7 have been paid
and all amounts owing by the Owner Trustee under the Interest Rate Swap have
been paid, notify the Owner Trustee thereof in writing and upon receipt of an
Issuer Request, release any remaining portion of the Trust Estate that secured
the Notes from the lien of this Indenture and release to the Owner Trustee or
any other Person entitled thereto any funds then on deposit in the Note
Distribution Account. The Indenture Trustee shall (i) release any remaining
portion of the Trust Estate that secured the Certificates from the lien of this
Indenture and (ii) deposit in the Certificate Distribution Account any funds
then on deposit in the Reserve Account or the Collection Account only at such
time as (y) there are no Notes Outstanding and (z) all sums due to the Indenture
Trustee pursuant to Section 6.7 have been paid.

          SECTION 8.5 Opinion of Counsel. The Indenture Trustee shall receive
                      ------------------
at least seven days' notice when requested by the Owner Trustee to take any
action pursuant to Section 8.4(a), accompanied by copies of any instruments
involved, and the Indenture Trustee shall also require as a condition to such
action, an Opinion of Counsel, in form and substance satisfactory to the
Indenture Trustee, stating the legal effect of any such action, outlining the
steps required to complete the same, and concluding that all conditions
precedent to the taking of such action have been complied with and such action
shall not materially and adversely impair the security for the Notes or the
rights of the Noteholders in contravention of the provisions of this Indenture;
provided, however, that such Opinion of Counsel shall not be required to express
--------  -------
an opinion as to the fair value of the Trust Estate. Counsel rendering any such
opinion may rely, without independent investigation, on the accuracy and
validity of any certificate or other instrument delivered to the Indenture
Trustee in connection with any such action.

                                   ARTICLE IX
                             SUPPLEMENTAL INDENTURES

          SECTION 9.1   Supplemental Indentures Without Consent of Noteholders.
                        ------------------------------------------------------

          (a) Without the consent of the Holders of any Notes but with prior
notice to the Rating Agencies, the Owner Trustee and the Indenture Trustee, when
authorized by an Issuer Order, at any time and from time to time, may enter into
one or more indentures supplemental hereto (which shall conform to the
provisions of the TIA as in force at the date of the execution thereof), in form
satisfactory to the Indenture Trustee, for any of the following purposes:

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

              (ii)  to evidence the succession, in compliance with Section 3.11
     and the applicable provisions hereof, of another Person to the Owner
     Trustee, and the assumption by any such successor of the covenants of the
     Owner Trustee contained herein and in the Notes;

                                       45

<PAGE>

                 (iii) to add to the covenants of the Owner Trustee for the
         benefit of the Securityholders, or to surrender any right or power
         herein conferred upon the Owner Trustee;

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

                 (v)   to cure any ambiguity or to correct or supplement any
         provision herein or in any supplemental indenture which may be
         inconsistent with any other provision herein, in any supplemental
         indenture or in any other Basic Document;

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

                 (vii) to modify, eliminate or add to the provisions of this
         Indenture to such extent as shall be necessary to effect the
         qualification of this Indenture under the TIA or under any similar
         federal statute hereafter enacted and to add to this Indenture such
         other provisions as may be expressly required by the TIA, and the
         Indenture Trustee is hereby authorized to join in the execution of any
         such supplemental indenture and to make any further appropriate
         agreements and stipulations that may be therein contained.

             (b) The Owner Trustee and the Indenture Trustee, when authorized
by an Issuer Order, may, also without the consent of any of the Noteholders but
with prior notice to the Rating Agencies, at any time and from time to time
enter into one or more indentures supplemental hereto for the purpose of adding
any provisions to, changing in any manner, or eliminating any of the provisions
of, this Indenture or modifying in any manner the rights of the Noteholders
under this Indenture; provided, however, that such action shall not, as
                      --------  -------
evidenced by an Opinion of Counsel, adversely affect in any material respect the
interests of any Noteholder.

             (c) Notwithstanding any other provision of this Indenture, if the
consent of the Swap Counterparty is required pursuant to the Swap Counterparty
Rights Agreement to enter into a supplemental indenture, any such purported
supplemental indenture shall be null and void ab initio unless the Swap
Counterparty consents in writing to such supplemental indenture. Any such
supplemental indenture shall include the same requirement of the Swap
Counterparty to consent to further supplemental indentures.

             SECTION 9.2   Supplemental Indentures With Consent of Noteholders.
                           ---------------------------------------------------

             (a) The Owner Trustee and the Indenture Trustee, when authorized
by an Issuer Order, also may, with prior notice to the Rating Agencies and with
the consent of the Holders of not

                                       46

<PAGE>

less than a majority of the Outstanding Amount of the Voting Notes, by Act of
such Holders delivered to the Owner Trustee and the Indenture Trustee, enter
into an indenture or indentures supplemental hereto for the purpose of adding
any provisions to, changing in any manner, or eliminating any of the provisions
of, this Indenture or modifying in any manner the rights of the Noteholders
under this Indenture; provided, however, that no such supplemental indenture
                      --------  -------
shall, without the consent of the Holder of each Outstanding Note affected
thereby:

              (i)    change the due date of any instalment of principal of or
     interest on any Note, or reduce the principal amount thereof, the interest
     rate applicable thereto, or the Redemption Price with respect thereto,
     change any place of payment where, or the coin or currency in which, any
     Note or any interest thereon is payable, or impair the right to institute
     suit for the enforcement of the provisions of this Indenture requiring the
     application of funds available therefor, as provided in Article V, to the
     payment of any such amount due on the Notes on or after the respective due
     dates thereof (or, in the case of redemption, on or after the Redemption
     Date);

              (ii)   reduce the percentage of the Outstanding Amount of the
     Voting Notes, the consent of the Holders of which is required for (a) any
     such supplemental indenture, (b) any waiver of compliance with certain
     provisions of this Indenture, certain defaults hereunder and their
     consequences as provided for in this Indenture or (c) any action described
     in Sections 2.12, 3.7(e), 5.2, 5.6, 5.11, 5.12(a), 6.8, or 6.16;

              (iii)  modify or alter the provisions of the proviso to the
     definition of the term "Outstanding Notes;

              (iv)   educe the percentage of the Outstanding Amount of the Notes
     required to direct the Indenture Trustee to sell or liquidate the Trust
     Estate pursuant to Section 5.4 if the proceeds of such sale would be
     insufficient to pay the principal amount of and accrued but unpaid interest
     on the Outstanding Notes;

              (v)    modify any provision of this Section 9.2 to decrease the
     required minimum percentage necessary to approve any amendments to any
     provisions of this Indenture or any of the Basic Documents;

              (vi)   modify any of the provisions of this Indenture in such
     manner as to affect the calculation of the amount of any payment of
     interest or principal due on any Note on any Distribution Date (including
     the calculation of any of the individual components of such calculation),
     or modify or alter the provisions of the Indenture regarding the voting of
     Notes held by the Owner Trustee, the Seller or any Affiliate of either of
     them; or

              (vii)  permit the creation of any Lien ranking prior to or on a
     parity with the lien of this Indenture with respect to any part of the
     Trust Estate or, except as otherwise permitted or contemplated herein,
     terminate the lien of this Indenture on any property at any time subject to
     the lien of this Indenture or deprive the Holder of any Note of the
     security afforded by the lien of this Indenture.

                                       47

<PAGE>

            (b) The Indenture Trustee may in its discretion determine whether or
not any Notes would be affected (such that the consent of each Noteholder would
be required) by any supplemental indenture proposed pursuant to this Section 9.2
and any such determination shall be conclusive and binding upon all of the
Noteholders, whether authenticated and delivered thereunder before or after the
date upon which such supplemental indenture becomes effective. The Indenture
Trustee shall not be liable for any such determination made in good faith.

            (c) It shall be sufficient if an Act of Noteholders approves the
substance, but not the form, of any proposed supplemental indenture.

            (d) Promptly after the execution by the Owner Trustee and the
Indenture Trustee of any supplemental indenture pursuant to this Section 9.2,
the Indenture Trustee shall mail to the Noteholders to which such amendment or
supplemental indenture relates a notice setting forth in general terms the
substance of such supplemental indenture. Any failure of the Indenture Trustee
to mail such notice, or any defect therein, shall not, however, in any way
impair or affect the validity of any such supplemental indenture.

            (e) Notwithstanding any other provision of this Indenture, if the
consent of the Swap Counterparty is required pursuant to the Swap Counterparty
Rights Agreement to enter into a supplemental indenture, any such purported
supplemental indenture shall be null and void ab initio unless the Swap
Counterparty consents in writing to such supplemental indenture. Any such
supplemental indenture shall include the same requirement of the Swap
Counterparty to consent to further supplemental indentures.

            SECTION 9.3 Execution of Supplemental Indentures. In executing, or
                        ------------------------------------
permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the modifications thereby of the trusts created
by this Indenture, the Indenture Trustee shall be entitled to receive, and
subject to Sections 6.1 and 6.2, shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture and that all conditions precedent to
such execution have been satisfied. The Indenture Trustee may, but shall not be
obligated to, enter into any such supplemental indenture that affects the
Indenture Trustee's own rights, duties, liabilities or immunities under this
Indenture or otherwise.

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

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

                                       48

<PAGE>

qualified under the TIA.

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

                                    ARTICLE X
                               REDEMPTION OF NOTES

               SECTION 10.1 Redemption.
                            ----------

               (a)    The Class A-4 Notes and Class B Notes are subject to
redemption in whole, but not in part, upon the exercise by the Servicer of its
option to purchase the Receivables pursuant to Section 9.01 of the Pooling and
Servicing Agreement. Such redemption shall occur on any Distribution Date after
all Class A-1 Notes, Class A-2 Notes and Class A-3 Notes have been paid in full.
The purchase price for the Class A-4 Notes and Class B Notes to be redeemed
shall be equal to the applicable Redemption Price, provided the Owner Trustee
has available funds in the Owner Trust Estate sufficient to pay such amount. The
Owner Trustee shall furnish the Rating Agencies notice of such redemption. If
the Class A-4 Notes and Class B Notes are to be redeemed pursuant to this
Section 10.1(a), the Owner Trustee shall furnish notice thereof to the Indenture
Trustee not later than 25 days prior to the Redemption Date and the Owner
Trustee shall deposit into the Note Distribution Account, before the Redemption
Date, the aggregate Redemption Price of the Class A-4 Notes and Class B Notes to
be redeemed, whereupon all such Notes shall be due and payable on the Redemption
Date.

               (b)    [Reserved.]

               (c)    Within sixty days after the redemption in full pursuant to
this Section 10.1 of any class of Notes, the Indenture Trustee shall provide
each of the Rating Agencies with written notice stating that all of such Notes
have been redeemed.

               SECTION 10.2 Form of Redemption Notice.
                            -------------------------

               (a)    Notice of redemption of the Class A-4 Notes and Class B
Notes under Section 10.1(a) shall be given by the Indenture Trustee by
first-class mail, postage prepaid, mailed not less than five days prior to the
applicable Redemption Date to each Holder of the Class A-4 Notes and Class B
Notes of record, respectively, at such Noteholder's address appearing in the
Note Register.

               (b)    All notices of redemption shall state:

                      (i)   the Redemption Date;

                                       49

<PAGE>

               (ii)  the Redemption Price;

               (iii) the place where Class A-4 Notes and Class B Notes are to be
surrendered for payment of the Redemption Price (which shall be the Agency
Office of the Indenture Trustee to be maintained as provided in Section 3.2);
and

               (iv)  CUSIP numbers.

         (c)   Notice of redemption of the Class A-4 Notes and Class B Notes
shall be given by the Indenture Trustee in the name and at the expense of the
Owner Trustee out of the Owner Trust Estate. Failure to give notice of
redemption, or any defect therein, to any Holder of any Class A-4 Note or Class
B Note to be redeemed shall not impair or affect the validity of the redemption
of any other Class A-4 Note or Class B Note to be redeemed.

         (d)   [Reserved.]

         SECTION 10.3 Notes Payable on Redemption Date.
                      --------------------------------

         The Class A-4 Notes or Class B Notes to be redeemed shall, following
notice of redemption as required by Section 10.2, on the Redemption Date cease
to be Outstanding for purposes of this Indenture and shall thereafter represent
only the right to receive the applicable Redemption Price and (unless the Owner
Trustee shall default in the payment of such Redemption Price) no interest shall
accrue on such Redemption Price for any period after the date to which accrued
interest is calculated for purposes of calculating such Redemption Price.

                                   ARTICLE XI
                                  MISCELLANEOUS

         SECTION 11.1    Compliance Certificates and Opinions, etc.
                         -----------------------------------------

         (a)   Upon any application or request by the Owner Trustee to the
Indenture Trustee to take any action under any provision of this Indenture, the
Owner Trustee shall furnish to the Indenture Trustee: (i) an Officer's
Certificate stating that all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with, (ii) an
Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent, if any, have been complied with and (iii) (if required by
the TIA) an Independent Certificate from a firm of certified public accountants
meeting the applicable requirements of this Section 11.1, except that, in the
case of any such application or request as to which the furnishing of such
documents is specifically required by any provision of this Indenture, no
additional certificate or opinion need be furnished. Every certificate or
opinion with respect to compliance with a condition or covenant provided for in
this Indenture shall include:

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

                                       50

<PAGE>

thereto;

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

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

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

           (b) (i)   Prior to the deposit with the Indenture Trustee of any
Collateral or other property or securities that is to be made the basis for the
release of any property or securities subject to the lien of this Indenture, the
Owner Trustee shall, in addition to any obligation imposed in Section 11.1(a) or
elsewhere in this Indenture, furnish to the Indenture Trustee an Officer's
Certificate certifying or stating the opinion of each Person signing such
certificate as to the fair value (within 60 days of such deposit) to the Owner
Trustee of the Collateral or other property or securities to be so deposited.

               (ii)  Whenever the Owner Trustee is required to furnish to the
     Indenture Trustee an Officer's Certificate certifying or stating the
     opinion of any signer thereof as to the matters described in clause (b)(i)
     above, the Owner Trustee shall also deliver to the Indenture Trustee an
     Independent Certificate as to the same matters, if the fair value to the
     Owner Trust Estate of the securities to be so deposited and of all other
     such securities made on the basis of any such withdrawal or release since
     the commencement of the then current fiscal year of the Trust, as set forth
     in the certificates delivered pursuant to clause (b)(i) above and this
     clause (b)(ii), is 10% or more of the Outstanding Amount of the Notes, but
     such a certificate need not be furnished with respect to any securities so
     deposited if the fair value thereof to the Owner Trust Estate as set forth
     in the related Officer's Certificate is less than $25,000 or less than one
     percent of the Outstanding Amount of the Notes.

               (iii) Other than with respect to the release of any Warranty
     Receivables, Administrative Receivables or Liquidating Receivables,
     whenever any property or securities are to be released from the lien of
     this Indenture, the Owner Trustee shall also furnish to the Indenture
     Trustee an Officer's Certificate certifying or stating the opinion of each
     Person signing such certificate as to the fair value (within 60 days of
     such release) of the property or securities proposed to be released and
     stating that in the opinion of such Person the proposed release will not
     impair the security under this Indenture in contravention of the provisions
     hereof.

               (iv)  Whenever the Owner Trustee is required to furnish to the
     Indenture Trustee an Officer's Certificate certifying or stating the
     opinion of any signatory thereof as to the matters described in clause
     (b)(iii) above, the Owner Trustee shall also furnish to the

                                       51

<PAGE>

     Indenture Trustee an Independent Certificate as to the same matters if the
     fair value of the property or securities and of all other property, other
     than Warranty Receivables, Administrative Receivables and Liquidating
     Receivables, or securities released from the lien of this Indenture since
     the commencement of the then current calendar year, as set forth in the
     certificates required by clause (b)(iii) above and this clause (b)(iv),
     equals 10% or more of the Outstanding Amount of the Notes, but such
     certificate need not be furnished in the case of any release of property or
     securities if the fair value thereof as set forth in the related Officer's
     Certificate is less than $25,000 or less than one percent of the then
     Outstanding Amount of the Notes.

               (v)   Notwithstanding Section 2.9 or any other provision of this
     Section 11.1, the Owner Trustee may (A) collect, liquidate, sell or
     otherwise dispose of Receivables as and to the extent permitted or required
     by the Basic Documents, (B) make cash payments out of the Designated
     Accounts and the Certificate Distribution Account as and to the extent
     permitted or required by the Basic Documents and (C) take any other action
     not inconsistent with the TIA.

           SECTION 11.2     Form of Documents Delivered to Indenture Trustee.
                            ------------------------------------------------

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

           (b) Any certificate or opinion of an Authorized Officer of the Owner
Trustee may be based, insofar as it relates to legal matters, upon a certificate
or opinion of, or representations by, counsel, unless such officer knows, or in
the exercise of reasonable care should know, that the certificate or opinion or
representations with respect to the matters upon which his certificate or
opinion is based are erroneous. Any such certificate of an Authorized Officer or
Opinion of Counsel may be based, insofar as it relates to factual matters, upon
a certificate or opinion of, or representations by, an officer or officers of
the Servicer, the Seller, the Owner Trustee or the Administrator, stating that
the information with respect to such factual matters is in the possession of the
Servicer, the Seller, the Owner Trustee or the Administrator, unless such
counsel knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to such matters are
erroneous.

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

           (d) Whenever in this Indenture, in connection with any application or
certificate or report to the Indenture Trustee, it is provided that the Owner
Trustee shall deliver any document as a condition of the granting of such
application, or as evidence of the Owner Trustee's compliance with any term
hereof, it is intended that the truth and accuracy, at the time of the granting
of such

                                       52

<PAGE>

application or at the effective date of such certificate or report (as the case
may be), of the facts and opinions stated in such document shall in such case be
conditions precedent to the right of the Owner Trustee to have such application
granted or to the sufficiency of such certificate or report. The foregoing shall
not, however, be construed to affect the Indenture Trustee's right to rely upon
the truth and accuracy of any statement or opinion contained in any such
document as provided in Article VI.

               SECTION 11.3      Acts of Noteholders.
                                 -------------------

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

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

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

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

               SECTION 11.4      Notices, etc., to Indenture Trustee, Owner
                                 ------------------------------------------
Trustee and Rating Agencies. Any request, demand, authorization, direction,
---------------------------
notice, consent, waiver or Act of Noteholders or other documents provided or
permitted by this Indenture to be made upon, given or furnished to or filed with
the Indenture Trustee, the Owner Trustee or the Rating Agencies under this
Indenture shall be made upon, given or furnished to or filed with such party as
specified in Appendix B to the Pooling and Servicing Agreement.

               SECTION 11.5      Notices to Noteholders; Waiver.
                                 ------------------------------

               (a)   Where this Indenture provides for notice to Noteholders of
any condition or event, such notice shall be given as specified in Appendix B to
                                                                   ----------
the Pooling and Servicing Agreement.

               (b)   Where this Indenture provides for notice in any manner,
such notice may be

                                       53

<PAGE>

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

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

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

               SECTION 11.6      Alternate Payment and Notice Provisions.
                                 ---------------------------------------

               Notwithstanding any provision of this Indenture or any of the
Notes to the contrary, the Owner Trustee may enter into any agreement with any
Holder of a Note providing for a method of payment, or notice by the Indenture
Trustee or any Paying Agent to such Holder, that is different from the methods
provided for in this Indenture for such payments or notices. The Owner Trustee
shall furnish to the Indenture Trustee a copy of each such agreement and the
Indenture Trustee shall cause payments to be made and notices to be given in
accordance with such agreements.

               SECTION 11.7      Conflict with Trust Indenture Act.
                                 ---------------------------------

               (a)   If any provision hereof limits, qualifies or conflicts with
another provision hereof that is required to be included in this Indenture by
any of the provisions of the TIA, such required provision shall control.

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

               SECTION 11.8      Effect of Headings and Table of Contents.
                                 ----------------------------------------

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

               SECTION 11.9      Successors and Assigns.
                                 ----------------------

               (a)   All covenants and agreements in this Indenture and the
Notes by the Owner Trustee shall bind its successors and assigns, whether so
expressed or not.

               (b)   All covenants and agreements of the Indenture Trustee in
this Indenture shall bind its successors and assigns, whether so expressed or
not.

                                       54

<PAGE>

     SECTION 11.10 Separability.
                   ------------

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

     SECTION 11.11 Benefits of Indenture.
                   ---------------------

     Nothing in this Indenture or in the Notes, express or implied, shall give
to any Person, other than the parties hereto and their successors hereunder, the
Noteholders and the Note Owners and (only to the extent expressly provided
herein) the Certificateholders, any other party secured hereunder, the Swap
Counterparty and any other Person with an ownership interest in any part of the
Trust Estate, any benefit or any legal or equitable right, remedy or claim under
this Indenture. The Swap Counterparty shall be a third-party beneficiary to this
Indenture only to the extent that it has any rights specified herein or rights
with respect to this Indenture specified under the Swap Counterparty Rights
Agreement.

     SECTION 11.12 Legal Holidays.
                   --------------

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

     SECTION 11.13 Governing Law.
                   -------------

     This Indenture shall be construed in accordance with the laws of the State
of Illinois, without reference to its conflict of law provisions, except that
the obligations, rights and remedies of the Indenture Trustee hereunder shall be
determined in accordance with the internal laws of the State of New York,
without reference to its conflict of law provisions.

     SECTION 11.14 Counterparts.
                   ------------

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

                                       55

<PAGE>

     SECTION 11.15 Recording of Indenture.
                   ----------------------

     If this Indenture is subject to recording in any appropriate public
recording offices, such recording is to be effected by the Owner Trustee and at
its expense accompanied by an Opinion of Counsel (which may be counsel to the
Indenture Trustee or any other counsel reasonably acceptable to the Indenture
Trustee) to the effect that such recording is necessary either for the
protection of the Noteholders or any other Person secured hereunder or for the
enforcement of any right or remedy granted to the Indenture Trustee under this
Indenture.

     SECTION 11.16 No Recourse. No recourse may be taken, directly or
                   -----------
indirectly, with respect to the obligations of the Owner Trustee or the
Indenture Trustee on the Notes or under this Indenture or any certificate or
other writing delivered in connection herewith or therewith, against:

     (i)     the Indenture Trustee or the Owner Trustee in its individual
             capacity;

     (ii)    any owner of a beneficial interest in the trust created by the
             Trust Agreement; or

     (iii)   any partner, owner, beneficiary, agent, officer, director, employee
or agent of the Indenture Trustee or the Owner Trustee in their individual
capacities, any holder of a beneficial interest in the Trust, the Owner Trustee
or the Indenture Trustee or of any successor or assign of the Indenture Trustee
or the Owner Trustee in their individual capacities (or any of their successors
or assigns), except as any such Person may have expressly agreed (it being
understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their individual capacities) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any instalment or call owing to such entity. For all purposes of
this Indenture, in the performance of any duties or obligations of the Owner
Trustee hereunder, the Owner Trustee shall be subject to, and entitled to the
benefits of, the terms and provisions of Articles VI, VII and VIII of the Trust
Agreement.

     SECTION 11.17 No Petition.
                   -----------

     The Indenture Trustee, by entering into this Indenture, and each Noteholder
and Note Owner, by accepting a Note (or interest therein) issued hereunder,
hereby covenant and agree that they shall not, prior to the date which is one
year and one day after the termination of this Indenture with respect to the
Owner Trustee pursuant to Section 4.1, acquiesce, petition or otherwise invoke
or cause the Seller or the Owner Trustee to invoke the process of any court or
government authority for the purpose of commencing or sustaining a case against
the Seller or the Owner Trustee or the Owner Trust Estate 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 Seller, the Owner Trust Estate or the Owner Trustee or any substantial
part of its property, or ordering the winding up or liquidation of the affairs
of the Seller, the Owner Trust Estate or the Owner Trustee.

                                       56

<PAGE>

     SECTION 11.18 Inspection.
                   ----------

     The Owner Trustee agrees that, on reasonable prior notice, it shall permit
any representative of the Indenture Trustee, during the Owner Trustee's normal
business hours, to examine all the books of account, records, reports and other
papers of the Owner Trustee (not in its individual capacity, but solely as
trustee under the Trust Agreement), to make copies and extracts therefrom, to
cause such books to be audited by Independent certified public accountants, and
to discuss the Owner Trustee's (not in its individual capacity, but solely as
trustee under the Trust Agreement) affairs, finances and accounts with the Owner
Trustee's officers, employees and Independent certified public accountants, all
at such reasonable times and as often as may be reasonably requested. The
Indenture Trustee shall and shall cause its representatives to hold in
confidence all such information except to the extent disclosure may be required
by law (and all reasonable applications for confidential treatment are
unavailing) and except to the extent that the Indenture Trustee may reasonably
determine that such disclosure is consistent with its obligations hereunder.

                                       57

<PAGE>

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

CHASE MANHATTAN BANK USA, NATIONAL
ASSOCIATION
not in its individual capacity but solely as
Owner Trustee

By: /s/ John J. Cashin

Name:   John J. Cashin
Title:  Vice President

THE BANK OF NEW YORK,
as Indenture Trustee

By: /s/ Erwin Soriano

Name:   Erwin Soriano
Title:  Assistant Treasurer

<PAGE>

STATE OF ILLINOIS )
                  )     ss.:
COUNTY OF COOK    )

   BEFORE ME, the undersigned authority, a Notary Public in and for said county
and state, on this day personally appeared John J. Cashin, known to me to be the
person and officer whose name is subscribed to the foregoing instrument and
acknowledged to me that the same was the act of Chase Manhattan Bank USA,
National Association, a national banking association, not in its individual
capacity, but solely as trustee under the Trust Agreement and that he executed
the same as the act of said national banking association for the purpose and
consideration therein expressed, and in the capacities therein stated.

   GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the 1/st/ day of November, 2001.

                                 /s/ Michelle DeAndrea
                                 -----------------------------------------------
                                 Notary Public in and for the State of Illinois.

My commission expires:

3/20/03
---------------------------

<PAGE>

STATE OF ILLINOIS )
                  )       ss.:
COUNTY OF COOK    )

     BEFORE ME, the undersigned authority, a Notary Public in and for said
county and state, on this day personally appeared Erwin Soriano, known to me to
be the person and officer whose name is subscribed to the foregoing instrument
and acknowledged to me that the same was the act of the said The Bank of New
York, a New York banking corporation, and that he executed the same as the act
of said New York banking corporation for the purpose and consideration therein
stated.

     GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the 1/st/ day of November,
2001.

Notary Public in and for the State of Illinois.

My Commission expires: 3/20/03

/s/ Michelle DeAndrea
---------------------------------

<PAGE>

                                                                       EXHIBIT A

                                  LOCATIONS OF
                             SCHEDULE OF RECEIVABLES

     The Schedule of Receivables is on file at the offices of:
         -----------------------

     1.    The Indenture Trustee

     2.    The Owner Trustee

     3.    Navistar Financial Corporation

     4.    Navistar Financial Retail Receivables Corporation

<PAGE>

                                                                       EXHIBIT B

                       FORM OF CLASS A-1 ASSET BACKED NOTE

REGISTERED                                                      $____________/1/

No. R- _______

                       SEE REVERSE FOR CERTAIN DEFINITIONS

                                                          CUSIP NO.[___________]

          Unless this Note is presented by an authorized representative of The
     Depository Trust Company, a New York corporation ("DTC"), to the Owner
     Trustee or its agent for registration of transfer, exchange or payment, and
     any Note issued is registered in the name of Cede & Co. or in such other
     name as is requested by an authorized representative of DTC (and any
     payment is made to Cede & Co. or to such other entity as is requested by an
     authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
     FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
     registered owner hereof, Cede & Co., has an interest herein.

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

                 CHASE MANHATTAN BANK USA, NATIONAL ASSOCIATION
               Not in its Individual Capacity but Solely as Owner
                  Trustee Under the Trust Agreement Dated as of
                                November 1, 2001

                       CLASS A-1 2.44% ASSET BACKED NOTES

     CHASE MANHATTAN BANK USA, NATIONAL ASSOCIATION, not in its individual
capacity, but solely as trustee (the "Owner Trustee") under that certain Trust
Agreement, dated as of November 1, 2001, between Chase Manhattan Bank USA,
National Association (not in its individual capacity, but solely as trustee) and
Navistar Financial Retail Receivables Corporation creating the Navistar
Financial 2001-B Owner Trust (the "Trust"), for

____________________
/1/ Denominations of $1,000 and integral multiples thereof.

                                       1

<PAGE>

value received, hereby promises to pay to Cede & Co., or registered assigns, the
principal sum of _______________ DOLLARS ($_________) payable in accordance with
the Indenture, prior to the occurrence of an Event of Default and a declaration
that the Notes are due and payable, on each Distribution Date in an amount equal
to the result obtained by multiplying (i) a fraction, the numerator of which is
the initial principal amount hereof and the denominator of which is [aggregate
principal amount for class] by (ii) the aggregate amount, if any, payable from
the Note Distribution Account in respect of principal on such class of the Notes
pursuant to Sections 2.7, 3.1 and 8.2 of the Indenture; provided, however, that
                                                        --------  -------
the entire unpaid principal amount of this Note shall be due and payable on
November 15, 2002 (the "Final Scheduled Distribution Date"). The Owner Trustee
shall pay interest on this Note at the rate per annum shown above on each
Distribution Date until the principal of this Note is paid or made available for
payment, on the principal amount of this Note outstanding on the preceding
Distribution Date (after giving effect to all payments of principal made on the
preceding Distribution Date). Interest on this Note will accrue for each
Distribution Date from and including the most recent Distribution Date on which
interest has been paid to but excluding the then current Distribution Date or,
if no interest has yet been paid, from November 1, 2001. Interest on this Note
will be calculated on the basis of the actual number of days elapsed since the
Closing Date or the preceding Distribution Date divided by 360. Such principal
of and interest on this Note shall be paid in the manner specified on the
reverse hereof.

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

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

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

                                       2

<PAGE>

     IN WITNESS WHEREOF, the Owner Trustee has caused this instrument to be
signed, manually or in facsimile, by its Authorized Officer.

Date: November 1, 2001                           CHASE MANHATTAN BANK USA,
                                                 NATIONAL ASSOCIATION, not
                                                 in its individual capacity
                                                 but solely as Owner Trustee
                                                 under the Trust Agreement

                                                 By: ___________________________
                                                     Name:   John J. Cashin
                                                     Title:  Vice President

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                                 THE BANK OF NEW YORK, not in
                                                 its individual capacity but
                                                 solely as Indenture Trustee

                                                 By: ___________________________
                                                     Name:   Erwin Soriano
                                                     Title:  Assistant Treasurer
                                       3

<PAGE>

                                 REVERSE OF NOTE

     This Note is one of a duly authorized issue of CHASE MANHATTAN BANK USA,
NATIONAL ASSOCIATION, not in its individual capacity, but solely as trustee (the
"Owner Trustee") under that certain Trust Agreement, dated as of November 1,
2001, between Chase Manhattan Bank USA, National Association, as Owner Trustee,
and Navistar Financial Retail Receivables Corporation creating the Navistar
Financial 2001-B Owner Trust (the "Trust") designated as its Class A-1 2.44%
Asset Backed Notes (herein called the "Class A-1 Notes"), all issued under an
Indenture, dated as of November 1, 2001 (such Indenture, as supplemented or
amended, is herein called the "Indenture"), between the Owner Trustee and The
Bank of New York, a New York banking corporation, as trustee (the "Indenture
Trustee", which term includes any successor trustee under the Indenture), to
which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights and obligations thereunder of the Owner
Trustee, the Indenture Trustee and the Noteholders. The Notes are governed by
and subject to all terms of the Indenture (which terms are incorporated herein
and made a part hereof), to which Indenture the holder of this Note by virtue of
acceptance hereof assents and by which such holder is bound. All capitalized
terms used and not otherwise defined in this Note that are defined in the
Indenture, as supplemented or amended, shall have the meanings assigned to them
in or pursuant to the Indenture.

     The Indenture secures (a) first, the payment of principal and interest on,
and any other amounts owing in respect of the Class A Notes, equally and ratably
without prejudice, priority or distinction and (b) second, the payment of
principal of and interest on, and any other amounts owing in respect of the
Class B Notes, equally and ratably without prejudice, priority or distinction,
and to secure compliance with the provisions of the Indenture, as provided
therein.

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

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a
Note Owner, a beneficial interest in a Note, covenants and agrees that by
accepting the benefits of the Indenture such Noteholder will not, prior to the
date which is one year and one day after the termination of this Indenture with
respect to the Owner Trustee, acquiesce, petition or otherwise

                                        4

<PAGE>

invoke or cause the Seller or the Owner Trustee to invoke the process of any
court or government authority for the purpose of commencing or sustaining a case
against the Seller, the Owner Trust Estate or the Owner Trustee 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 Seller, the Owner Trust Estate or the Owner Trustee or any substantial
part of its property, or ordering the winding up or liquidation of the affairs
of the Seller, the Owner Trust Estate or the Owner Trustee.

     Each Noteholder, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, unless otherwise required by appropriate taxing
authorities, agrees to treat the Notes as indebtedness secured by the
Receivables for the purpose of federal income taxes, state and local income and
franchise taxes, and any other taxes imposed upon, measured by or based upon
gross or net income.

     Prior to the due presentment for registration of transfer of this Note, the
Owner Trustee, the Indenture Trustee and any agent of the Owner Trustee or the
Indenture Trustee may treat the Person in whose name this Note (as of the day of
determination or as of such other date as may be specified in the Indenture) is
registered as the owner hereof for all purposes, whether or not this Note shall
be overdue, and neither the Owner Trustee, the Indenture Trustee nor any such
agent shall be affected by notice to the contrary.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Owner Trustee and the rights of the Noteholders under the Indenture at any time
by the Owner Trustee with the consent of the Holders of Notes representing a
majority of the Outstanding Amount of all the Voting Notes. The Indenture also
contains provisions permitting the Holders of Notes representing specified
percentages of the Outstanding Amount of the Voting Notes, on behalf of the
Holders of all the Notes, to waive compliance by the Owner Trustee with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Note (or
any one of more Predecessor Notes) shall be conclusive and binding upon such
Holder and upon all future Holders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether
or not notation of such consent or waiver is made upon this Note. The Indenture
also permits the Indenture Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of the Noteholders.

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

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

     The Notes are issuable only in registered form in denominations as provided
in the Indenture, subject to certain limitations therein set forth.

     This Note and the Indenture shall be construed in accordance with the laws
of the

                                       5

<PAGE>

State of Illinois, without reference to its conflict of law provisions, and the
obligations, rights and remedies of the parties hereunder and thereunder shall
be determined in accordance with such laws, except that the obligations, rights
and remedies of the Indenture Trustee hereunder shall be determined in
accordance with the internal laws of the State of New York.

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

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

                                       6

<PAGE>

                                   ASSIGNMENT

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

______________________________________

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

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

Dated:__________________      __________________________________/1/

                                     Signature Guaranteed:

________________________      __________________________________

___________________
/1/ NOTE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatsoever.

                                       7

<PAGE>

                                                                       EXHIBIT C

                        FORM OF CLASS A-2, CLASS A-4 AND
                            CLASS B ASSET BACKED NOTE

         REGISTERED                                           $______________/1/

No. R-____                                                 CUSIP No. ___________

                       SEE REVERSE FOR CERTAIN DEFINITIONS

          Unless this Note is presented by an authorized representative
     of The Depository Trust Company, a New York corporation ("DTC"),
     to the Owner Trustee or its agent for registration of transfer,
     exchange or payment, and any Note issued is registered in the
     name of Cede & Co. or in such other name as is requested by an
     authorized representative of DTC (and any payment is made to Cede
     & Co. or to such other entity as is requested by an authorized
     representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
     VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
     registered owner hereof, Cede & Co., has an interest herein.

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

                 CHASE MANHATTAN BANK USA, NATIONAL ASSOCIATION
                  Not in its Individual Capacity but Solely as
                     Owner Trustee Under the Trust Agreement
                          Dated as of November 1, 2001

                      CLASS ____ _____% ASSET BACKED NOTES

          CHASE MANHATTAN BANK USA, NATIONAL ASSOCIATION not in its individual
capacity, but solely as trustee (the "Owner Trustee") under that certain Trust
Agreement, dated as of November 1, 2001 between Chase Manhattan Bank USA,
National Association, (not in its individual capacity, but solely as trustee)
and Navistar Financial Retail Receivables Corporation creating the Navistar
Financial 2001-B Owner Trust (the "Trust") for

____________________
/1/ Denominations of $1,000 and integral multiples thereof (except, if
applicable, for one Note representinga residual portion of such class which may
be issued in a different denomination).

                                       8

<PAGE>

value received, hereby promises to pay to Cede & Co., or registered assigns, the
principal sum of _______________ DOLLARS ($_________) payable in accordance with
the Indenture, prior to the occurrence of an Event of Default and a declaration
that the Notes are due and payable, on each Distribution Date in an amount equal
to the result obtained by multiplying (i) a fraction, the numerator of which is
the initial principal amount hereof and the denominator of which is [aggregate
principal amount for class] by (ii) the aggregate amount, if any, payable from
the Note Distribution Account in respect of principal on such class of the Notes
pursuant to Sections 2.7, 3.1 and 8.2 of the Indenture; provided, however, that
                                                        --------  -------
the entire unpaid principal amount of this Note shall be due and payable on [the
earlier of] _______________ (the "Final Scheduled Distribution Date") [and the
Redemption Date, if any, pursuant to Section 10.1(a) of the Indenture]. The
Owner Trustee shall pay interest on this Note at the rate per annum shown above
on each Distribution Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note outstanding on the
preceding Distribution Date (after giving effect to all payments of principal
made on the preceding Distribution Date). Interest on this Note will accrue for
each Distribution Date from and including the most recent Distribution Date on
which interest has been paid to but excluding the then current Distribution Date
or, if no interest has yet been paid, from November 1, 2001. Interest on this
Note will be computed on the basis of a 360-day year of twelve 30-day months
(or, in the case of the initial Distribution Date, 14/30ths of a month). Such
principal of and interest on this Note shall be paid in the manner specified on
the reverse hereof.

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

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

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

                                       9

<PAGE>

          IN WITNESS WHEREOF, the Owner Trustee has caused this instrument to be
signed, manually or in facsimile, by its Authorized Officer.

Date:                                 CHASE MANHATTAN BANK USA,
                                      NATIONAL ASSOCIATION, not in its
                                      individual capacity, but solely as Owner
                                      Trustee under the Trust Agreement

                                      By:______________________
                                         Name: John J. Cashin
                                         Title: Vice President

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                      THE BANK OF NEW YORK, not in its
                                      individual capacity but solely as
                                             Indenture Trustee

                                      By:_________________________
                                         Name: Erwin Soriano
                                         Title: Assistant Treasurer

                                       10

<PAGE>

                                 REVERSE OF NOTE

          This Note is one of a duly authorized issue of CHASE MANHATTAN BANK
USA, NATIONAL ASSOCIATION, not in its individual capacity, but solely as trustee
(the "Owner Trustee") under that certain Trust Agreement, dated as of November
1, 2001, between Chase Manhattan Bank USA, National Association, as Owner
Trustee, and Navistar Financial Retail Receivables Corporation creating the
Navistar Financial 2001-B Owner Trust (the "Trust") designated as its Class ____
% Asset Backed Notes (herein called the "Class__ Notes"), all issued under an
--
Indenture, dated as of November 1, 2001 (such Indenture, as supplemented or
amended, is herein called the "Indenture"), between the Owner Trustee and The
Bank of New York, a New York banking corporation, as trustee (the "Indenture
Trustee", which term includes any successor trustee under the Indenture), to
which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights and obligations thereunder of the Owner
Trustee, the Indenture Trustee and the Noteholders. The Notes are governed by
and subject to all terms of the Indenture (which terms are incorporated herein
and made a part hereof), to which Indenture the holder of this Note by virtue of
acceptance hereof assents and by which such holder is bound. All capitalized
terms used and not otherwise defined in this Note that are defined in the
Indenture, as supplemented or amended, shall have the meanings assigned to them
in or pursuant to the Indenture.

          The Indenture secures (a) first, the payment of principal and interest
on, and any other amounts owing in respect of the Class A Notes, equally and
ratably without prejudice, priority or distinction and (b) second, the payment
of principal of and interest on, and any other amounts owing in respect of the
Class B Notes, equally and ratably without prejudice, priority or distinction,
and to secure compliance with the provisions of the Indenture, as provided
therein.

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

                                       11

<PAGE>

          Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note, covenants and agrees that by
accepting the benefits of the Indenture such Noteholder will not, prior to the
date which is one year and one day after the termination of this Indenture with
respect to the Owner Trustee, acquiesce, petition or otherwise invoke or cause
the Seller or the Owner Trustee to invoke the process of any court or government
authority for the purpose of commencing or sustaining a case against the Seller,
the Owner Trust Estate or the Owner Trustee 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
Seller, the Owner Trust Estate or the Owner Trustee or any substantial part of
its property, or ordering the winding up or liquidation of the affairs of the
Seller, the Owner Trust Estate or the Owner Trustee.

          Each Noteholder, by acceptance of a Note or, in the case of a Note
Owner, a beneficial interest in a Note, unless otherwise required by appropriate
taxing authorities, agrees to treat the Notes as indebtedness secured by the
Receivables for the purpose of federal income taxes, state and local income and
franchise taxes, and any other taxes imposed upon, measured by or based upon
gross or net income.

          Prior to the due presentment for registration of transfer of this
Note, the Owner Trustee, the Indenture Trustee and any agent of the Owner
Trustee or the Indenture Trustee may treat the Person in whose name this Note
(as of the day of determination or as of such other date as may be specified in
the Indenture) is registered as the owner hereof for all purposes, whether or
not this Note shall be overdue, and neither the Owner Trustee, the Indenture
Trustee nor any such agent shall be affected by notice to the contrary.

          The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Owner Trustee and the rights of the Noteholders under the Indenture at any time
by the Owner Trustee with the consent of the Holders of Notes representing a
majority of the Outstanding Amount of all the Voting Notes. The Indenture also
contains provisions permitting the Holders of Notes representing specified
percentages of the Outstanding Amount of the Voting Notes, on behalf of the
Holders of all the Notes, to waive compliance by the Owner Trustee with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Note (or
any one of more Predecessor Notes) shall be conclusive and binding upon such
Holder and upon all future Holders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether
or not notation of such consent or waiver is made upon this Note. The Indenture
also permits the Indenture Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of the Noteholders.

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

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

                                       12

<PAGE>

          The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

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

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

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

                                       13

<PAGE>

                                   ASSIGNMENT

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

_________________________________

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

_______________________________________________

_________________________________________________________________
                    (name and address of assignee)

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

Dated:___________________     _______________________________________ /1/

                                            Signature Guaranteed:

_________________________     ________________________________________

________________
/1/ NOTE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatsoever.

                                       14

<PAGE>

                                                                       Exhibit D

                        FORM OF CLASS A-3, FLOATING RATE
                                ASSET BACKED NOTE

          REGISTERED                                         $______________/1/

No. R-____                                             CUSIP No. ____________

                       SEE REVERSE FOR CERTAIN DEFINITIONS

                     Unless this Note is presented by an authorized
          representative of The Depository Trust Company, a New York corporation
          ("DTC"), to the Owner Trustee or its agent for registration of
          transfer, exchange or payment, and any Note issued is registered in
          the name of Cede & Co. or in such other name as is requested by an
          authorized representative of DTC (and any payment is made to Cede &
          Co. or to such other entity as is requested by an authorized
          representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
          VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
          registered owner hereof, Cede & Co., has an interest herein.

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

                 CHASE MANHATTAN BANK USA, NATIONAL ASSOCIATION
                  Not in its Individual Capacity but Solely as
                     Owner Trustee Under the Trust Agreement
                          Dated as of November 1, 2001

                   CLASS A-3 FLOATING RATE ASSET BACKED NOTES

          CHASE MANHATTAN BANK USA, NATIONAL ASSOCIATION not in its individual
capacity, but solely as trustee (the "Owner Trustee") under that certain Trust
Agreement, dated as of November 1, 2001 between Chase Manhattan Bank USA,
National Association, (not in its individual capacity, but solely as trustee)
and Navistar Financial Retail Receivables Corporation creating the Navistar
Financial 2001-B Owner Trust (the "Trust") for

______________________________

/1/ Denominations of $1,000 and integral multiples thereof (except, if
applicable, for one Note representing a residual portion of such class which may
be issued in a different denomination).

                                       15

<PAGE>

value received, hereby promises to pay to Cede & Co., or registered assigns, the
principal sum of _______________ DOLLARS ($_________) payable in accordance with
the Indenture, prior to the occurrence of an Event of Default and a declaration
that the Notes are due and payable, on each Distribution Date in an amount equal
to the result obtained by multiplying (i) a fraction, the numerator of which is
the initial principal amount hereof and the denominator of which is [aggregate
principal amount for class] by (ii) the aggregate amount, if any, payable from
the Note Distribution Account in respect of principal on such class of the Notes
pursuant to Sections 2.7, 3.1 and 8.2 of the Indenture; provided, however, that
                                                        --------  -------
the entire unpaid principal amount of this Note shall be due and payable on July
17, 2006 (the "Final Scheduled Distribution Date"). The Owner Trustee shall pay
interest on this Note on each Distribution Date until the principal of this Note
is paid or made available for payment, on the principal amount of this Note
outstanding on the preceding Distribution Date (after giving effect to all
payments of principal made on the preceding Distribution Date). Interest on this
Note will accrue for each Distribution Date from and including the most recent
Distribution Date on which interest has been paid to but excluding the then
current Distribution Date or, if no interest has yet been paid, from November 1,
2001. Interest on this Note will be computed on the basis of the actual number
of days elapsed since the Closing Date or the preceding Distribution Date
divided by 360. Such principal of and interest on this Note shall be paid in the
manner specified on the reverse hereof.

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

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

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

                                       16

<PAGE>

               IN WITNESS WHEREOF, the Owner Trustee has caused this instrument
to be signed, manually or in facsimile, by its Authorized Officer.

Date: November 1, 2001                  CHASE MANHATTAN BANK USA,
                                        NATIONAL ASSOCIATION, not in its
                                        individual capacity, but solely as Owner
                                        Trustee under the Trust Agreement

                                        By: ______________________
                                            Name: John J. Cashin
                                            Title: Vice President

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                        THE BANK OF NEW YORK, not in its
                                        individual capacity but solely as
                                        Indenture Trustee

                                        By: _________________________
                                            Name: Erwin Soriano
                                            Title: Assistant Treasurer

<PAGE>

                                 REVERSE OF NOTE

     This Note is one of a duly authorized issue of CHASE MANHATTAN BANK USA,
NATIONAL ASSOCIATION, not in its individual capacity, but solely as trustee (the
"Owner Trustee") under that certain Trust Agreement, dated as of November 1,
2001, between Chase Manhattan Bank USA, National Association, as Owner Trustee,
and Navistar Financial Retail Receivables Corporation creating the Navistar
Financial 2001-B Owner Trust (the "Trust") designated as its Class A-3 Floating
Rate Asset Backed Notes (herein called the "Class A-3 Notes"), all issued under
an Indenture, dated as of November 1, 2001 (such Indenture, as supplemented or
amended, is herein called the "Indenture"), between the Owner Trustee and The
Bank of New York, a New York banking corporation, as trustee (the "Indenture
Trustee", which term includes any successor trustee under the Indenture), to
which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights and obligations thereunder of the Owner
Trustee, the Indenture Trustee and the Noteholders. The Notes are governed by
and subject to all terms of the Indenture (which terms are incorporated herein
and made a part hereof), to which Indenture the holder of this Note by virtue of
acceptance hereof assents and by which such holder is bound. All capitalized
terms used and not otherwise defined in this Note that are defined in the
Indenture, as supplemented or amended, shall have the meanings assigned to them
in or pursuant to the Indenture.

     The Indenture secures (a) first, the payment of principal and interest on,
and any other amounts owing in respect of the Class A Notes, equally and ratably
without prejudice, priority or distinction and (b) second, the payment of
principal of and interest on, and any other amounts owing in respect of the
Class B Notes, equally and ratably without prejudice, priority or distinction,
and to secure compliance with the provisions of the Indenture, as provided
therein.

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

                                       18

<PAGE>

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a
Note Owner, a beneficial interest in a Note, covenants and agrees that by
accepting the benefits of the Indenture such Noteholder will not, prior to the
date which is one year and one day after the termination of this Indenture with
respect to the Owner Trustee, acquiesce, petition or otherwise invoke or cause
the Seller or the Owner Trustee to invoke the process of any court or government
authority for the purpose of commencing or sustaining a case against the Seller,
the Owner Trust Estate or the Owner Trustee 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
Seller, the Owner Trust Estate or the Owner Trustee or any substantial part of
its property, or ordering the winding up or liquidation of the affairs of the
Seller, the Owner Trust Estate or the Owner Trustee.

     Each Noteholder, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, unless otherwise required by appropriate taxing
authorities, agrees to treat the Notes as indebtedness secured by the
Receivables for the purpose of federal income taxes, state and local income and
franchise taxes, and any other taxes imposed upon, measured by or based upon
gross or net income.

     Prior to the due presentment for registration of transfer of this Note, the
Owner Trustee, the Indenture Trustee and any agent of the Owner Trustee or the
Indenture Trustee may treat the Person in whose name this Note (as of the day of
determination or as of such other date as may be specified in the Indenture) is
registered as the owner hereof for all purposes, whether or not this Note shall
be overdue, and neither the Owner Trustee, the Indenture Trustee nor any such
agent shall be affected by notice to the contrary.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Owner Trustee and the rights of the Noteholders under the Indenture at any time
by the Owner Trustee with the consent of the Holders of Notes representing a
majority of the Outstanding Amount of all the Voting Notes. The Indenture also
contains provisions permitting the Holders of Notes representing specified
percentages of the Outstanding Amount of the Voting Notes, on behalf of the
Holders of all the Notes, to waive compliance by the Owner Trustee with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Note (or
any one of more Predecessor Notes) shall be conclusive and binding upon such
Holder and upon all future Holders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether
or not notation of such consent or waiver is made upon this Note. The Indenture
also permits the Indenture Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of the Noteholders.

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

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

                                       19

<PAGE>

     The Notes are issuable only in registered form in denominations as provided
in the Indenture, subject to certain limitations therein set forth.

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

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

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

                                       20

<PAGE>

                                   ASSIGNMENT

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

_________________________________

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

_______________________________________________

________________________________________________________________________
                         (name and address of assignee)

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

Dated:__________________            __________________________________/1/

                                           Signature Guaranteed:

________________________            __________________________________

________________
/1/ NOTE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatsoever.

                                       21

<PAGE>

                                                                       EXHIBIT E

                        FORM OF NOTE DEPOSITORY AGREEMENT

                                       22

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