EXHIBIT 10.15


                                FOURTH AMENDMENT
                                       TO
                      GENERAL CREDIT AND SECURITY AGREEMENT

         THIS AGREEMENT, dated as of September 10, 1998, between SPECTRUM
Commercial Services, a division of Lyon Financial Services, Inc., a Minnesota
Corporation, having its mailing address and principal place of business at 7900
International Drive, Suite 800, Bloomington, Minnesota 55425 (herein called
"Lender" or "SCS"), and Appliance Recycling Centers of America, Inc., a
Minnesota corporation, having the mailing address and principal place of
business at 7400 Excelsior Boulevard, Minneapolis, MN 55426 (herein called
"Borrower"), amends that certain General Credit and Security Agreement dated
August 30, 1996, ("Credit Agreement") as amended. Where the provisions of this
Agreement conflict with the Credit Agreement, the intent of this Agreement shall
control.

         1. The definition of "Maximum Principal Amount" under paragraph 2 of
            the Credit Agreement is hereby deleted and replaced with the
            following:

               "Maximum Principal Amount" shall mean, at any date,
               Two Million and No/100ths Dollars ($2,000,000).

         2. The definition of "Borrowing Base" appearing in Paragraph 2 are
            respectively amended in their entirety to read as follows:

                "Borrowing Base" shall mean the sum of (i) Eighty
                percent (80%) of the net amount of Eligible
                Receivables or such greater or lesser percentage as
                Lender, in its sole discretion, shall deem
                appropriate, plus (ii) the lesser of (x) One Hundred
                Fifty Thousand and No/100ths Dollars ($150,000.00) or
                (y) Twenty Five percent (25%) of the net amount of
                Eligible Inventory (excluding Eligible Whirlpool
                Inventory), or such greater or lesser dollars and/or
                percentage as Lender, in its sole discretion, shall
                deem appropriate, plus (iii) the lesser of (x) Nine
                Hundred Thousand and No/100ths Dollars ($900,000.00)
                or (y) Seventy Five percent (75%) of the net amount
                of Eligible Whirlpool Inventory, or such greater or
                lesser dollars and/or percentage as Lender, in its
                sole discretion, shall deem appropriate.


         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

SPECTRUM COMMERCIAL SERVICES                   APPLIANCE RECYCLING CENTERS
                                                  OF AMERICA, INC.


By       /s/ Steven Lowenthal                  By       /s/ Edward R. Cameron
  ----------------------------------------       ------------------------------
Steven I. Lowenthal, Senior Vice President        Its President







                            GUARANTOR ACKNOWLEDGMENT

         The undersigned (collectively the "Guarantor") has entered into certain
Guaranties of various dates (collectively the "Guaranty;" capitalized terms not
otherwise defined herein being used herein as therein defined), pursuant to
which each Guarantor has guarantied the payment and performance of certain
Indebtedness of Appliance Recycling Centers of America, Inc., a Minnesota
corporation ("Borrower") to SPECTRUM Commercial Services, a division of Lyon
Financial Services, Inc., a Minnesota corporation, ("SCS"), which Indebtedness
includes, without limitation, all obligations of Borrower under that certain
Revolving Note dated as of August 30, 1996 between the Borrower and SCS as
subsequently amended (as so amended the "Original Loan Agreement").

         Each Guarantor hereby acknowledges that it has received a copy, of: (a)
the Fourth Amendment to General Credit and Security Agreement and Waiver dated
as of the date hereof (the "Loan Agreement") between the Borrower and SCS
amending and restating the Original Loan Agreement;

         Each Guarantor hereby:

         (a) agrees and acknowledges that:

                  (i) the Guaranty applicable to the Guarantor shall be of an
             UNLIMITED AMOUNT, including without limitation all of Lender's
             fees, costs, expenses and attorneys' fees incurred in enforcing the
             Guarantee; and

         (b) confirms that:

                  (i) by the Guaranty, the Guarantor continues to guarantee the
             full payment and performance of all of the Indebtedness owed to
             SCS, including, without limitation, all obligations of Borrower
             under the Original Loan Agreement as amended and restated by the
             Loan Agreement; and

                  (ii) the Guaranty remains in full force and effect,
             enforceable against the Guarantor in accordance with its terms.

                                                     /s/ Edward R. Cameron
                                            -----------------------------------
ARCA-MARYLAND INC.                          Edward R. Cameron
                                            Guarantor
By       /s/ Edward R. Cameron
   ----------------------------------
   Its President

APPLIANCE RECYCLING CENTERS                 ARCA OF ST. LOUIS, INC.
    OF AMERICA-CALIFORNIA, INC.

By       /s/ Edward R. Cameron              By       /s/ Edward R. Cameron
   ----------------------------------          --------------------------------
   Its President                               Its President

Accepted and Agreed to this 4th day of June, 1998

SPECTRUM COMMERCIAL SERVICES

By:      /s/ Steven I. Lowenthal
    ---------------------------------
    Its Senior Vice President