EXHIBIT 10.3

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CUSTODIAL AGREEMENT
 
 
among
 
 
CATERPILLAR FINANCIAL SERVICES CORPORATION
 
 
Originator and Servicer
 
 
CATERPILLAR FINANCIAL FUNDING CORPORATION
 
 
Depositor
 
 
CATERPILLAR FINANCIAL ASSET TRUST 2006-A
 
 
Issuer
 
 
and
 
 
U.S. BANK NATIONAL ASSOCIATION
 
 
Indenture Trustee and Custodian
 
 
Dated as of June 1, 2006
 
 

 

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TABLE OF CONTENTS

ARTICLE I    
DEFINITIONS........................................................................................................................................................................2
 
Section 1.1. 
Definitions.................................................................................................................................................................2
 
Section 1.2.  Interpretation of the
Agreement............................................................................................................................2
 
ARTICLE II     CUSTODIAL
ARRANGEMENT........................................................................................................................................2
 
Section 2.1.  Appointment as
Custodian.....................................................................................................................................2
 
Section 2.2.  Maintenance of
Office.............................................................................................................................................3
 
ARTICLE III     CUSTODIAL
ARRANGEMENT......................................................................................................................................3
 
Section 3.1.  Transfer of Receivables; Delivery of
Documents...............................................................................................3
 
Section 3.2. 
Certification..............................................................................................................................................................4
 
Section 3.3.  Release of Receivable
Files...................................................................................................................................4
 
Section 3.4.  Purchase; Payment In
Full.....................................................................................................................................5
 
Section 3.5.  Other Duties of
Custodian....................................................................................................................................5
 
Section 3.6.  Access to
Records.................................................................................................................................................5
 
Section 3.7.  Instructions; Authority to
Act............................................................................................................................5
 
ARTICLE IV     OWNERSHIP AND TRANSFER OF
RECEIVABLES...................................................................................................6
 
Section 4.1.  Transfer of
Receivables.........................................................................................................................................6
 
Section 4.2.  Substitution and Purchase of
Receivables........................................................................................................6
 
Section 4.3.  No Service Charge for Transfer of
Receivables.................................................................................................7
 
Section 4.4. 
Defeasance...............................................................................................................................................................7
 
ARTICLE V    
CUSTODIAN.......................................................................................................................................................................7
 
Section 5.1.  Representations, Warranties and Covenants of
Custodian............................................................................7
 
Section 5.2.  Charges and
Expenses..........................................................................................................................................8
 
Section 5.3.  No Adverse
Interests...........................................................................................................................................9
 
Section 5.4. 
Inspections.............................................................................................................................................................9
 
Section 5.5. 
Insurance.................................................................................................................................................................9
 
Section 5.6.  Limitation of
Liability.............................................................................................................................................9
 
Section 5.7. 
Indemnification.......................................................................................................................................................9
 
Section 5.8.  Further Rights of
Custodian...............................................................................................................................10
 
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TABLE OF CONTENTS
(continued)
 
ARTICLE VI     MISCELLANEOUS
PROVISIONS.................................................................................................................................10
 
Section 6.1. 
Amendment............................................................................................................................................................10
 
Section 6.2.  Governing
Law......................................................................................................................................................10
 
Section 6.3. 
Notices....................................................................................................................................................................11
 
Section 6.4.  Severability of
Provisions....................................................................................................................................11
 
Section 6.5.  No
Partnership........................................................................................................................................................11
 
Section 6.6.  Termination of
Agreement....................................................................................................................................11
 
Section 6.7. 
Counterparts...........................................................................................................................................................11
 
Section 6.8. 
Assignment.............................................................................................................................................................12
 
Section 6.9. 
Headings..................................................................................................................................................................12
 
Section 6.10. Advice of
Counsel.................................................................................................................................................12
 
Section 6.11. No
Petition..............................................................................................................................................................12
 
Section 6.12. Resignation of
Custodian.....................................................................................................................................12
 
Section 6.13. Limitation of Liability of Indenture Trustee and Owner
Trustee....................................................................12
 
ARTICLE VII     REGULATION AB
COMPLIANCE................................................................................................................................13
 
Section 7.1.  Additional Representations and Warranties of
Custodian..............................................................................13
 
Section 7.2.  Additional Representations and Warranties of
Custodian..............................................................................14
 
Section 7.3.  Report on Assessment of Compliance and
Attestation...................................................................................14
 
Section 7.4.  Indemnification By
Custodian..............................................................................................................................14
 
Section 7.5.   Indemnification of
Custodian...............................................................................................................................15
 
EXHIBIT A  CUSTODIAN
CERTIFICATION.........................................................................................................................................A-1
 
EXHIBIT B  REQUEST FOR RELEASE OF
DOCUMENTS....................................................................................................................B-1
 
EXHIBIT C  TRANSFER
CERTIFICATE..................................................................................................................................................C-1
 
APPLICABLE SERVICING
CRITERIA.....................................................................................................................................................D-1
 

 

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CUSTODIAL AGREEMENT
 
THIS CUSTODIAL AGREEMENT is made as of June 1, 2006 (as amended, modified or
supplemented from time to time, this "Agreement"), by and among CATERPILLAR
FINANCIAL SERVICES CORPORATION, as originator and as servicer (the "Originator"
and the "Servicer", respectively), CATERPILLAR FINANCIAL FUNDING CORPORATION, as
depositor (the "Depositor"), CATERPILLAR FINANCIAL ASSET TRUST 2006-A (the
"Issuing Entity"), U.S. BANK NATIONAL ASSOCIATION, as trustee (the "Indenture
Trustee"), and U.S. BANK NATIONAL ASSOCIATION, as custodian (the "Custodian").
 
RECITALS
 
WHEREAS, before the Closing Date the Originator is the owner of the Receivables;
 
WHEREAS, pursuant to the Purchase Agreement, the Originator will sell the
Receivables to the Depositor;
 
WHEREAS, pursuant to the Sale and Servicing Agreement, the Depositor will sell
the Receivables acquired pursuant to the Purchase Agreement to the Issuing
Entity;
 
WHEREAS, pursuant to the Indenture, the Issuing Entity will Grant to the
Indenture Trustee all of the Issuing Entity's right, title and interest in, to
and under the Receivables and the other assets of the Issuing Entity;
 
WHEREAS, during such time as the Originator, the Depositor, the Issuing Entity
or the Indenture Trustee owns or has an interest in the Receivables, such Person
or Persons shall be referred to herein as the "Receivables Holder," and the
Custodian shall hold all Receivables for the benefit of the Originator, the
Depositor, the Issuing Entity and the Indenture Trustee during such time as such
Person is a Receivables Holder;
 
WHEREAS, in connection with the foregoing, the parties hereto desire to provide
for the custody and management of the Receivables transferred pursuant to the
Purchase Agreement, the Sale and Servicing Agreement and the Indenture (each, a
"Transfer");
 
WHEREAS, the Custodian is a financial institution regulated by the Comptroller
of the Currency of the United States;
 
WHEREAS, the Originator, the Depositor, the Issuing Entity and the Indenture
Trustee, during such time as each such Person is a Receivables Holder, desire to
have the Custodian (i) hold the Receivables as custodian for each such party,
(ii) take possession of the Contracts and the Receivable Files related to the
Receivables, along with certain other documents specified in this Agreement, as
the custodian for such Receivables Holder in accordance with the terms and
conditions of this Agreement and (iii) retain possession of the Contracts and
Receivable Files and such other documents as custodian for the applicable
Receivables Holder; and the Custodian is willing and able to perform the duties
and obligations of a custodian as set forth herein; and
 

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WHEREAS, the Servicer will act as servicer of the Receivables pursuant to the
Sale and Servicing Agreement.
 
NOW, THEREFORE, in consideration of the premises and the mutual agreements
hereinafter set forth, the Originator, the Servicer, the Depositor, the Issuing
Entity, the Indenture Trustee and the Custodian hereby agree as follows:
 
  
ARTICLE I
 
DEFINITIONS
 
Section 1.1.  Definitions. Certain capitalized terms used in this Agreement and
not otherwise defined herein shall have the respective meanings assigned them in
the Sale and Servicing Agreement, dated as of June 1, 2006 (as amended, modified
or supplemented from time to time, the "Sale and Servicing Agreement"), among
the Issuing Entity, the Depositor and the Servicer or in the Indenture, dated as
of June 1, 2006 (as amended, modified or supplemented from time to time, the
"Indenture"), between the Issuing Entity and the Indenture Trustee. All
references in this Agreement to Articles, Sections, Subsections and Exhibits are
to the same contained in or attached to this Agreement unless otherwise
specified. All terms defined in this Agreement shall have the defined meanings
when used in any certificate, notice or other document made or delivered
pursuant hereto unless otherwise defined therein. As used in this Agreement and
in any certificate or other document made or delivered pursuant hereto,
accounting terms not defined in this Agreement or in any such certificate or
other document, and accounting terms partly defined in this Agreement or in any
such certificate or other document to the extent not defined, shall have the
respective meanings given to them under generally accepted accounting
principles. To the extent that the definitions of accounting terms in this
Agreement or in any such certificate or other document are inconsistent with the
meanings of such terms under generally accepted accounting principles, the
definitions contained in this Agreement or in any such certificate or other
document shall control. The words "hereof," "herein," "hereunder," and words of
similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement; the term
"including" shall mean "including without limitation"; and the term "or" is not
exclusive. The definitions contained in this Agreement are applicable to the
singular as well as the plural forms of such terms and to the masculine as well
as to the feminine and neuter genders of such terms. Terms used herein that are
defined in the New York UCC and not otherwise defined herein shall have the
meanings set forth in the New York UCC unless the context requires otherwise.
 
Section 1.2.  Interpretation of the Agreement. In interpreting any mistake or
ambiguity contained herein, the parties hereto agree to resolve any such
mistakes or ambiguities in favor of the Indenture Trustee.
 
 
 
ARTICLE II

 
CUSTODIAL ARRANGEMENT
 
Section 2.1.  Appointment as Custodian. Subject to the terms and conditions
hereof, the Originator, the Depositor, the Issuing Entity and the Indenture
Trustee, as their interests may appear, hereby appoint U.S. Bank National
Association, and U.S. Bank National Association hereby accepts such appointment,
as Custodian to maintain custody of the Receivables, the Contracts and the
Receivable Files during such time as each such Person is a Receivables Holder.
 
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Section 2.2.  Maintenance of Office. The Custodian agrees to maintain each
Receivable File identified in Section 3.03 of the Sale and Servicing Agreement
and Section 2.04 of the Purchase Agreement at its office located at 4040 S.
Eastern Avenue, Suite 346, Las Vegas, Nevada 89119, or at such of its other
offices in Nevada as Custodian shall designate from time to time after giving
the Originator, the Depositor, the Issuing Entity, each of the Rating Agencies
and the Indenture Trustee prior written notice, which office shall be maintained
separate from the offices of the Originator, the Depositor and the Servicer and
shall be at all times under the exclusive dominion and control of the Custodian.
None of the Custodian's employees shall be employees of the Originator, the
Depositor, the Servicer or any of the Servicer's Affiliates.
 
  
 
ARTICLE III

 
CUSTODIAL ARRANGEMENT
 
Section 3.1.  Transfer of Receivables; Delivery of Documents. Within 30 days of
the Closing Date, the Originator shall deliver, or cause to be delivered, to the
Custodian, the Receivable Files, including the Original Contract evidencing each
Receivable.
 
On the date on which the Originator delivers the Receivable Files to the
Custodian (the "Delivery Date"), the Originator shall deliver to the Custodian a
transfer certificate in form of Exhibit C (a "Transfer Certificate"),
acknowledging the Transfer of the Receivables from the Originator to the
Depositor pursuant to the Purchase Agreement. Upon its receipt of such Transfer
Certificate, the Custodian shall acknowledge such Transfer Certificate (as
provided thereon) and deliver to the Depositor a Custodian Certification (as
defined in Section 3.2) (the "Depositor's Custodian Certification") certifying
that it is holding the Receivable Files delivered to it by the Originator on
behalf of the Depositor.
 
Upon receipt of the Depositor's Custodian Certification, the Depositor shall
deliver to the Custodian a Transfer Certificate acknowledging the Transfer of
the Receivables from the Depositor to the Issuing Entity pursuant to the Sale
and Servicing Agreement. Upon its receipt of such Transfer Certificate, the
Custodian shall acknowledge such Transfer Certificate as provided thereon and
deliver to the Issuing Entity a Custodian Certification (the "Issuing Entity's
Custodian Certification") certifying that it is holding the Receivable Files
delivered to it by the Originator on behalf of the Issuing Entity.
 
Upon receipt of the Issuing Entity's Custodian Certification, the Issuing Entity
shall deliver to the Custodian a Transfer Certificate acknowledging the Transfer
of the Receivables from the Issuing Entity to the Indenture Trustee pursuant to
the Indenture. Upon its receipt of such Transfer Certificate, the Custodian
shall acknowledge such Transfer Certificate as provided thereon and deliver to
the Indenture Trustee a Custodian Certification (the "Trustee's Custodian
Certification") certifying that it is holding the Receivable Files delivered to
it by the Originator on behalf of the Indenture Trustee.
 
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Custodian hereby acknowledges receipt of the Purchase Agreement, the Sale and
Servicing Agreement and the Indenture. Custodian further acknowledges that, on
the Delivery Date and pursuant to this Agreement, the Purchase Agreement, the
Sale and Servicing Agreement and the Indenture, Custodian will be given
possession of the Receivable Files relating to the Receivables constituting a
portion of the Collateral, each of which Receivables will be described
specifically on Schedule A to each of the Purchase Agreement and the Sale and
Servicing Agreement, a copy of which will be delivered to Custodian
simultaneously with the delivery of the Receivable Files relating thereto. On
and after the Delivery Date and the completion of the Transfers described above,
and so long as this Agreement shall remain in effect, Custodian shall hold the
Receivable Files now and thereafter, from time to time, in its sole custody and
control as custodian for the Indenture Trustee, unless and until released from
the lien of the Indenture and otherwise in accordance with the Sale and
Servicing Agreement, in which event, Custodian shall hold the Receivables and
the Receivable Files as custodian for the benefit of the applicable Receivables
Holder.
 
Section 3.2.  Certification. Custodian shall hold all documents in each
Receivable File on behalf of the applicable Receivables Holder pursuant to this
Agreement. Upon consummation of a Transfer in accordance with terms hereof,
Custodian shall, with respect to the Receivables transferred to a Receivables
Holder in connection with a Transfer, number, execute and deliver to the
applicable Receivables Holder (with a copy to the Servicer) one or more
certifications (each, a "Custodian Certification") in the form attached as
Exhibit A. Upon issuance of a Custodian Certification with respect to any
Transfer, the Custodian Certification relating to such Receivable previously
delivered shall be deemed and marked cancelled with respect to such Receivable.
 
Section 3.3.  Release of Receivable Files. From time to time and as provided in
the Sale and Servicing Agreement, Custodian is hereby authorized, upon written
request of Servicer (with the approval of the Indenture Trustee, which approval
shall not be unreasonably withheld) in the form annexed as Exhibit B, to release
to the Servicer the Receivable File related to any Receivable or the specific
documents identified in such request by the Servicer. All documents so released
to the Servicer shall be held by it in trust for the benefit of the Indenture
Trustee. Servicer shall return the Receivable File, or such other documents
which have been released to Servicer, to Custodian when Servicer's need therefor
in connection with a foreclosure, modification, termination or repossession no
longer exists, unless the Receivable shall be satisfied in full or liquidated,
in which case, upon receipt of a certification to such effect from Servicer to
Custodian in the form annexed as Exhibit B, the related Receivable File shall be
released by Custodian to Servicer, and Custodian shall thereupon reflect any
such liquidation of the related Receivable. Pursuant to Section 4.07 of the Sale
and Servicing Agreement, (i) the Servicer shall return a Receivable File
released to it within five Business Days of such release and (ii) if such
Receivable File has not been returned to the Custodian within such five Business
Day period, the Servicer shall repurchase the related Receivable.
 
Notwithstanding anything herein or in any other Basic Document to the contrary,
(i) the Servicer shall return any Receivable File released to it in connection
with a modification or extension of a Receivable to the Custodian on the same
day such file is released and (ii) the Custodian shall not release a Receivable
File to the Servicer in connection with a modification or extension of a
Receivable if, after giving effect to the release of such Receivable File, the
number of Receivables having released Receivable Files in connection with
modifications and extensions exceeds four (4).
 
 
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Section 3.4.  Purchase; Payment In Full. Upon the purchase of any Receivable
pursuant to Section 3.02, 3.05 or 4.07 of the Sale and Servicing Agreement or
Section 6.02 of the Purchase Agreement, or upon the payment in full of any
Receivable, which shall be evidenced by Custodian's receipt of the request for
release in the form annexed hereto as Exhibit B, Custodian shall promptly
release the related Receivable File to Servicer and the security interest in
such Receivable and related Receivable File granted by the Issuing Entity to the
Indenture Trustee pursuant to the Indenture shall terminate without any further
action by the Custodian, the Originator, the Depositor or the Indenture Trustee.
 
Section 3.5.  Other Duties of Custodian. The Custodian shall have and perform
the other following powers and duties:
 
(a)  Safekeeping. To segregate the Receivables and Receivable Files from all
other receivables, leases and installment sale contracts and similar records in
its possession, to identify the Receivable Files as being held and to hold the
Receivable Files for and on behalf of the applicable Receivables Holder (which,
on and after the delivery of the appropriate Transfer Certificate on the
Delivery Date, shall be the Indenture Trustee, until such time as the Indenture
Trustee releases the lien of the Indenture), to maintain accurate records
pertaining to each Contract and Receivable in the Receivable Files, to provide
monthly a list of all Receivable Files held by it, together with a current
exception report, and to provide such information as is necessary to enable the
Servicer to deliver the reports and notifications required by Section 4.09 of
the Sale and Servicing Agreement. Custodian will promptly report to the
Indenture Trustee any failure on its part to hold the Receivable Files as herein
provided and promptly take appropriate action to remedy any such failure.
 
(b)  Administration; Reports. In general, to attend to all non-discretionary
details in connection with maintaining custody of the Receivable Files on behalf
of the applicable Receivables Holder as may be expressly provided herein or as
may be required or customary for a custodian. In addition, Custodian shall
assist the Indenture Trustee and the Servicer (at Servicer's cost) generally in
the preparation of reports to holders or to regulatory bodies to the extent
necessitated by Custodian's custody of the Receivable Files.
 
Section 3.6.  Access to Records. Custodian shall permit the Indenture Trustee
and its duly authorized agents, attorneys or auditors to inspect the Receivable
Files and the books and records maintained by the Custodian pursuant hereto at
such reasonable times as they may reasonably request, subject only to compliance
with the terms of the Sale and Servicing Agreement.
 
Section 3.7.  Instructions; Authority to Act. The Custodian shall be deemed to
have received proper instructions with respect to the Receivable Files upon its
receipt of written instructions signed by a Responsible Officer of the Indenture
Trustee (so long as it is the Receivables Holder) and may conclusively rely on
such instructions. In addition, the Custodian may conclusively rely upon any
release request delivered to it in the form attached as Exhibit B duly executed
by an authorized representative of the Servicer as set forth on Annex 1 to
Exhibit B and, if required by the terms thereof, by the Indenture Trustee.
 
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ARTICLE IV

 
OWNERSHIP AND TRANSFER OF RECEIVABLES
 
Section 4.1.  Transfer of Receivables. The delivery of Receivables in connection
with any Transfer shall occur in the following manner:
 
(i)  Upon receipt of a Transfer Certificate, Custodian shall deliver a Custodian
Certification certifying that it is holding the Receivable Files delivered to it
on behalf of the transferee referred to in such Transfer Certificate;
 
(ii)  Custodian shall within 15 days of its receipt of the delivery of the
Receivable Files:
 
(a)  determine whether each Receivable File listed on the Schedule of
Receivables has been delivered to Custodian, and whether Custodian is able to
deliver a Custodian Certification certifying that it is in possession of each
Receivable File;
 
(b)  promptly advise the applicable Receivables Holder, the Indenture Trustee,
the Originator, the Servicer, the Depositor and each of the Rating Agencies by
telephone or by facsimile transmission if it determines that any Receivable File
referred to in clause (a) above has not been so delivered and take no further
action under this Section 4.1 until it determines that such Receivable File has
been so delivered; and
 
(c)  upon determining that such Receivable File has been so delivered, Custodian
shall issue and deliver to applicable Receivables Holder a Custodian
Certification certifying that it is in possession of each Receivable File.
 
Section 4.2.  Substitution and Purchase of Receivables. The purchase of
Receivables pursuant to Section 6.02 of the Purchase Agreement and Section 3.02,
Section 3.05(b) or Section 4.07 of the Sale and Servicing Agreement shall occur
in the following manner:
 
(i)  On or before the date of such purchase, the Servicer shall send the
Indenture Trustee notice, with a copy to Custodian, indicating the Receivables
to be purchased and the aggregate purchase prices to be paid on such date.
 
(ii)  Upon receiving written confirmation in the form annexed as Exhibit B from
the Servicer that it has received the applicable Purchase Amount, or that
payment in full will be escrowed in a manner customary for such purpose,
Custodian shall return to the applicable party (as identified to Custodian by
the Indenture Trustee (so long as it is the Receivables Holder)) Receivable
Files related to the Receivables purchased on such date.
 
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Section 4.3.  No Service Charge for Transfer of Receivables. No service charge
shall be made for any transfer of Receivables, but Custodian may require payment
from the relevant transferor (other than the Indenture Trustee) of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer of Receivables.
 
Section 4.4.  Defeasance. When a Receivable is purchased by the Servicer, the
Depositor or the Originator pursuant to the terms of the Purchase Agreement and
the Sale and Servicing Agreement, the applicable Receivables Holder's interest
in such Receivable and all Collateral with respect to such Receivable shall
terminate, such Receivable and related Collateral shall be conveyed to the
Servicer, the Depositor or the Originator, as applicable, and the Receivables
Holder's rights, title and interest therein shall cease, and the Indenture
Trustee shall execute such instruments acknowledging termination and discharge
of the lien of the Indenture as are required by applicable law.
 
  
 
ARTICLE V
 
CUSTODIAN
 
Section 5.1.  Representations, Warranties and Covenants of Custodian. Custodian
hereby represents and warrants to, and covenants with, the Originator, the
Depositor, the Servicer, the Issuing Entity and the Indenture Trustee, that as
of the date of each Custodian Certification:
 
(i)  Custodian is duly organized, validly existing and in good standing under
the laws of the United States;
 
(ii)  Custodian has the full power and authority to hold each Receivable as
custodian on behalf of the applicable Receivables Holder, and to execute,
deliver and perform, and to enter into and consummate all transactions
contemplated by this Agreement, has duly authorized the execution, delivery and
performance of this Agreement, has duly executed and delivered this Agreement,
and this Agreement constitutes a legal, valid and binding obligation of
Custodian, enforceable against it in accordance with its terms, except as
enforcement of such terms may be limited by bankruptcy, insolvency or similar
laws affecting the enforcement of creditors' rights generally and by the
availability of equitable remedies;
 
(iii)  Neither the execution and delivery of this Agreement, the delivery of
Receivables to Custodian, the issuance of the Custodian Certifications, the
consummation of the transactions contemplated hereby or thereby, nor the
fulfillment of or compliance with the terms and conditions of this Agreement
will conflict with or result in a breach of any of the terms, conditions or
provisions of Custodian's charter or bylaws or any agreement or instrument to
which Custodian is now a party or by which it is bound, or constitute a default
or result in an acceleration under any of the foregoing, or result in the
violation of any law, rule, regulation, order, judgment or decree to which
Custodian or its property is subject;
 
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(iv)  Custodian does not believe, nor does it have any reason or cause to
believe, that it cannot perform each and every covenant contained in this
Agreement;
 
(v)  To Custodian's knowledge after due inquiry, there is no litigation pending
or threatened, which if determined adversely to Custodian, would adversely
affect the execution, delivery or enforceability of this Agreement, or any of
the duties or obligations of Custodian hereunder, or which would have a material
adverse effect on the financial condition of Custodian;
 
(vi)  No consent, approval, authorization or order of any court or governmental
agency or body is required for the execution, delivery and performance by
Custodian of or compliance by Custodian with this Agreement or the consummation
of the transactions contemplated hereby;
 
(vii)  Upon written request of the applicable Receivables Holder, Custodian
shall take such steps as requested by the applicable Receivables Holder to
protect or maintain any interest in any Receivable; and
 
(viii)  The Custodian has not been notified by any party other than the
Originator, the Depositor, the Issuing Entity and the Indenture Trustee that any
such third party claims an interest in the Receivables or the Receivable Files
nor is any such party requesting the Custodian to act as a bailee or custodian
with respect to the Receivables or the Receivable Files.
 
Custodian makes no representations or warranties as to the validity, legality,
sufficiency, enforceability, perfection, genuineness or prior recorded status of
any of the documents contained in each Receivable File or the collectability,
insurability, effectiveness or suitability of any Receivable.
 
Section 5.2.  Charges and Expenses. The Depositor will pay all fees of Custodian
in connection with the performance of its duties hereunder in accordance with
written agreements to be entered into from time to time between the Depositor
and Custodian, including fees and expenses of counsel incurred by Custodian in
the performance of its duties hereunder; provided, however, that (i) Custodian
shall in no event acquire any lien upon any Receivable or Receivable File held
under this Agreement or the Purchase Agreement or the Sale and Servicing
Agreement, or any claim against any Receivables Holder by reason of the failure
of the Depositor to pay any of such charges or expenses and (ii) in the event
the Depositor fails to pay the fees and expenses of Custodian as set forth in
such written agreements, Custodian shall have no obligation to take actions or
incur costs in connection with this Agreement unless the Depositor or another
Person has made adequate provision for payment of Custodian's fees and expenses.
The Depositor shall indemnify Custodian against payment of any documentary stamp
taxes, intangible taxes and other similar taxes, penalties and interest incurred
in connection with the Receivables and the transactions contemplated hereby.
 
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Section 5.3.  No Adverse Interests. Custodian covenants and warrants to the
Originator, the Depositor, the Servicer, the Issuing Entity and the Indenture
Trustee, that as of the date of each Custodian Certification: (i) it holds no
adverse interest, by way of security or otherwise, in any Receivable; and
(ii) the execution of this Agreement and the creation of the custodial
relationship hereunder does not create any interest, by way of security or
otherwise, of Custodian in or to any Receivable or any Receivable File, other
than Custodian's rights as custodian hereunder.
 
Section 5.4.  Inspections. Upon reasonable prior written notice to Custodian,
the Servicer, the Depositor, the Indenture Trustee, the Issuing Entity and such
Person's agents, accountants, attorneys and auditors will be permitted during
normal business hours to examine Custodian's documents, records and other papers
in possession of or under the control of Custodian relating to the Receivables.
 
Section 5.5.  Insurance. Custodian shall, at its own expense, maintain at all
times during the existence of this Agreement and keep in full force and effect,
(1) fidelity insurance, (2) theft of documents insurance, and (3) forgery
insurance subject to deductibles, all as is customary for amounts and with
insurance companies reasonably acceptable to the Servicer and the Indenture
Trustee. A certificate of the respective insurer as to each such policy or a
blanket policy for such coverage shall be furnished to the Servicer or the
Indenture Trustee, upon request, containing the insurer's statement or
endorsement that such insurance shall not terminate prior to receipt by such
party, by registered mail, of 10 days advance notice thereof.
 
Section 5.6.  Limitation of Liability. Custodian assumes no obligation, and
shall be subject to no liability, under this Agreement, except for its
negligence or willful misconduct in the performance of the obligations and
duties as are specifically set forth herein. Custodian shall not be liable for
any action or non-action by it in reliance on advice of counsel believed by it
in good faith to be competent to give such advice. Custodian may rely and shall
be protected in acting upon any written notice, order, request, direction or
other document believed by it to be genuine and to have been signed or presented
by the proper party or parties. Except with respect to the willful misconduct of
the Custodian, neither the Custodian nor its directors, officers and agents
shall be held liable for any indirect or consequential damages resulting from
any action taken or omitted to be taken by it or them under or in connection
with this Agreement, even if advised of the possibility of such damages. The
provisions of this Section 5.6 shall survive the termination of this Agreement.
 
Section 5.7.  Indemnification. Servicer agrees to indemnify Custodian against,
and to hold it harmless from, any liabilities, and any related out-of-pocket
expenses, which it may incur in connection with this Agreement, the Sale and
Servicing Agreement, the Purchase Agreement or the Custodian Certifications,
other than any liabilities and expenses arising out of Custodian's negligence or
willful misconduct. The Custodian agrees to indemnify, defend and hold harmless
the Indenture Trustee against any liability to Noteholders or Certificateholder
arising out of the negligence or willful misconduct of the Custodian (a) in the
preparation or execution of any Custodian Certification or (b) resulting in the
loss of Receivable Files in the custody of the Custodian. This indemnity shall
include indemnification as to reasonable attorneys' fees and costs, whether or
not suit be brought, and including such fees and costs on appeal. The Indenture
Trustee shall give prompt written notice to Custodian of any claim for which
indemnity is or may be sought and shall afford to Custodian the opportunity to
defend such claim.
 
9

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Section 5.8.  Further Rights of Custodian.
 
(a)   If Custodian is at any time uncertain of its obligations hereunder,
Custodian, upon prior written notice to the Indenture Trustee, the Issuing
Entity, the Originator, the Depositor and the Servicer, may refrain from taking
any action with respect to such matter until such uncertainty is removed. If
conflicting demands are made on Custodian with respect to any matter, the
Indenture Trustee's demand shall control, except during the period prior to the
issuance of the Trustee's Custodian Certification pursuant to Section 3.1
hereof, when the applicable Receivables Holder's demand shall control and
Custodian shall have the right to rely on such controlling demand. Custodian
shall have the right in any such case to interplead any or all of the documents
contained in the Receivable Files in a court of competent jurisdiction and, upon
delivery thereof, shall have no further obligations thereunder with respect to
such documents.
 
(b)  The obligations of Custodian shall be determined solely by the express
provisions of this Agreement. No representation, warranty, covenant or
obligation of Custodian shall be implied with respect to this Agreement or
Custodian's service hereunder. Without limiting the generality of the foregoing
statement, except as specifically required herein, Custodian shall be under no
obligation to inspect, review or examine the Receivable Files to determine that
the contents thereof are complete, genuine, enforceable or appropriate for the
represented purpose or that they have been actually recorded or filed in
required offices or that they are other than what they purport to be on their
face.
 
(c)  No provision of this Agreement shall require Custodian to spend or risk its
own funds or otherwise incur financial liability in performance of its duties
under this Agreement unless, pursuant to Section 5.2 hereof, adequate provision
has been made for the reimbursement of Custodian's expenses hereunder.
 
 
 
ARTICLE VI
 
MISCELLANEOUS PROVISIONS
 
Section 6.1.  Amendment. This Agreement may be amended from time to time by
Custodian, the Originator, the Depositor, the Servicer, the Issuing Entity and
the Indenture Trustee by written agreement signed by such parties and upon
satisfaction of the Rating Agency Condition.
 
Section 6.2.  Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 AND 5-1402 OF THE GENERAL
OBLIGATIONS OF LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.
 
10

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Section 6.3.  Notices. All demands, notices and communication hereunder shall be
in writing and shall be deemed to have been duly given if personally delivered
at or mailed by overnight mail, certified mail return receipt requested, postage
prepaid, to (i) in the case of the Servicer and the Originator, Caterpillar
Financial Services Corporation, 2120 West End Avenue, Nashville, Tennessee
37203-0001, (ii) in the case of the Depositor, Caterpillar Financial Funding
Corporation, 4040 S. Eastern Avenue, Suite 344, Las Vegas, Nevada 89119,
(iii) in the case of the Issuing Entity, c/o Chase Bank USA, National
Association, as Owner Trustee, c/o JPMorgan Chase, N.A., 500 Stanton Christiana
Road, OPS4, 3rd Floor, Newark, Delaware 19713, with a copy to the Administrator,
Caterpillar Financial Services Corporation, 2120 West End Avenue, Nashville,
Tennessee 37203-0001, (iv) in the case of the Indenture Trustee, U.S. Bank
National Association, 209 South LaSalle Street, Suite 300, Chicago, Illinois
60604, (v) in the case of the Custodian, U.S. Bank National Association, 209
South LaSalle Street, Suite 300, Chicago, Illinois 60604, and (vi) in the case
of the Rating Agencies, at their respective addresses set forth in the Sale and
Servicing Agreement, and, in each such case, at such other addresses as may
hereafter be furnished to each party hereto in writing.
 
Section 6.4.  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 covenants, agreements, provisions or terms of this
Agreement.
 
Section 6.5.  No Partnership. Nothing herein contained shall be deemed or
construed to create a co-partnership or joint venture between Custodian and the
other parties hereto.
 
Section 6.6.  Termination of Agreement. This Agreement shall be terminated upon
termination of the Sale and Servicing Agreement or at the option of Indenture
Trustee on 30 days written notice to Custodian, the Servicer, the Depositor, the
Issuing Entity and the Originator. Concurrently with, or as soon as practicable
after, the termination of this Agreement, Custodian shall redeliver the
Receivable Files to the Indenture Trustee at such place as the Indenture Trustee
may reasonably designate and until such redelivery, Custodian shall hold such
Receivable Files in its sole custody and control as custodian for and bailee of
the Indenture Trustee. In connection with the administration of this Agreement,
Custodian and the Indenture Trustee may agree from time to time upon the
interpretation of the provisions of this Agreement, as such interpretation may
in their opinion be consistent with the general tenor and purposes of this
Agreement, any such interpretation to be signed and annexed hereto.
 
Section 6.7.  Counterparts. This Agreement may be executed simultaneously in any
number of counterparts, each of which counterparts shall be deemed to be an
original, and such counterparts shall constitute but one and the same
instrument.
 
11

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Section 6.8.  Assignment. No party hereto shall sell, pledge, assign or
otherwise transfer this Agreement without the prior written consent of the other
parties hereto and satisfaction of the Rating Agency Condition.
 
Section 6.9.  Headings. Section headings are for reference purposes only and
shall not be construed as a part of this Agreement.
 
Section 6.10.  Advice of Counsel. Custodian shall be entitled to rely and act
upon advice of counsel with respect to its performance hereunder as Custodian
and shall be without liability for any action reasonably taken pursuant to such
advice, provided that such action is not in violation of application federal or
state law. This paragraph shall not negate Custodian's obligations under
Section 5.7.
 
Section 6.11.  No Petition. Custodian, by entering into this Agreement, hereby
covenants and agrees that it will not at any time (whether or not this Agreement
has been terminated) institute against the Depositor or the Issuing Entity, or
join in any institution against the Depositor or the Issuing Entity of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings under any United States federal or state bankruptcy or
similar law.
 
Section 6.12.  Resignation of Custodian.
 
(a)   Custodian may at any time resign and terminate its obligations under this
Agreement upon at least 90 days' prior written notice to the Servicer and the
Indenture Trustee. Custodian may be removed at any time at the written request
of the Indenture Trustee. In the event of such resignation or removal, the
Indenture Trustee shall appoint a successor custodian acceptable to the
Servicer, which appointment must satisfy the Rating Agency Condition. If the
Indenture Trustee fails to appoint a successor custodian within 30 days, the
Servicer shall appoint a successor custodian. In no event shall the resignation
of Custodian be effective until a successor custodian is duly appointed
hereunder. One original counterpart of such instrument of appointment shall be
delivered to each of the Servicer, Custodian and the successor custodian. The
Servicer shall notify the Rating Agencies of any such resignation or removal and
the appointment of a successor custodian.
 
(b)  In the event of any resignation, Custodian shall promptly transfer to the
successor custodian (or to the Indenture Trustee if no successor custodian has
been appointed) all of the Receivables (including the Receivable Files) in its
possession under this Agreement and take such other action as may be requested
by the Indenture Trustee to effect the transfer of Custodian's Receivable Files
to the successor custodian, which shall provide a written receipt for all such
transferred documents and instruments. On completion of such transfer, Custodian
shall be relieved of all further responsibilities and obligations hereunder.
 
Section 6.13.  Limitation of Liability of Indenture Trustee and Owner Trustee.
 
(a)   Notwithstanding anything contained herein to the contrary, in no event
shall U.S. Bank National Association in its individual capacity have any
liability for the representations, warranties, covenants, agreements or other
obligations of the Issuing Entity 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 Issuing Entity.
 
12

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(b)  Notwithstanding anything contained herein to the contrary, this instrument
has been countersigned by Chase Bank USA, National Association, not in its
individual capacity but solely as Owner Trustee, and in no event shall Chase
Bank USA, National Association have any liability for the representations,
warranties, covenants, agreements or other obligations of the Issuing Entity
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 Issuing Entity. For all purposes of this Agreement, in the performance of
any duties or obligations of the Issuing Entity hereunder, the Owner Trustee
shall be subject to, and entitled to the benefits of, the terms and provisions
of Article VI, VII and VIII of the Trust Agreement.
 
  
 
ARTICLE VII

 
REGULATION AB COMPLIANCE
 
Section 7.1.  Additional Representations and Warranties of Custodian.
 
(a)   Custodian shall be deemed to represent and warrant as of the date hereof
and on each date on which information is provided under Section 7.2 that, except
as disclosed in writing to the Servicer prior to such date: (i) there are no
aspects of its financial condition that could have a material adverse effect on
the performance by it of its Custodian obligations under this Agreement; (ii)
there are no legal or governmental proceedings pending (or known to be
contemplated) against it that would be material to holders of the Notes; and
(iii) there are no affiliations, relationships or transactions relating to
Custodian with respect to any Transaction Party (other than the Indenture
Trustee if Custodian is also the Indenture Trustee) required to be disclosed
under Item 1119 of Regulation AB. The Servicer shall notify Custodian of any
change in the identity of a Transaction Party known to it after the Closing
Date.
 
(b)   If so requested by the Servicer or the Depositor on any date following the
Closing Date, Custodian shall, within five Business Days following such request,
confirm in writing the accuracy of the representations and warranties set forth
in paragraph (b) of this Section or, if any such representation and warranty is
not accurate as of the date of such confirmation, provide reasonably adequate
disclosure of the pertinent facts, in writing, to the requesting party. Any such
request from the Servicer or the Depositor shall not be made more than once each
calendar quarter, unless such party shall have a reasonable basis for a
determination that any of the representations and warranties may not be
accurate.
 
13

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Section 7.2.  Additional Representations and Warranties of Custodian . For the
purpose of satisfying the Depositor's reporting obligation under the Exchange
Act with respect to any class of Notes, Custodian shall (a) notify the Servicer
in writing of any material litigation or governmental proceedings pending or
known to be contemplated against Custodian that would be material to
Noteholders, and (b) provide to the Servicer a written description of such
proceedings. As of the date the Servicer files each Report on Form 10-D or Form
10-K with respect to the Notes, Custodian will be deemed to represent that any
information previously provided under this Article VII is materially correct and
does not have any material omissions unless Custodian has provided an update to
such information. The Servicer, the Issuing Entity and the Depositor will allow
Custodian to review any disclosure relating to material litigation against
Custodian prior to filing such disclosure with the Commission to the extent the
Servicer, the Issuing Entity or the Depositor changes the information provided
by Custodian.
 
Section 7.3.  Report on Assessment of Compliance and Attestation
 
On or before March 15 of each calendar year in which a Form 10-K is required to
be filed in connection with the Notes, Custodian shall:

(a)   deliver to the Servicer a report (in form and substance reasonably
satisfactory to the Servicer) regarding Custodian's assessment of compliance
with the applicable Servicing Criteria during the immediately preceding calendar
year, as required under Rules 13a-18 and 15d-18 of the Exchange Act and Item
1122 of Regulation AB. Such report shall (i) be addressed to the Servicer, the
Issuing Entity and the Depositor, (ii) signed by an authorized officer of
Custodian and (iii) address each of the Servicing Criteria specified on Exhibit
D; and
 
(b)   deliver to the Servicer a report of a nationally recognized registered
public accounting firm that satisfies the requirements of Rule 2-01 of
Regulation S-X under the Securities Act and the Exchange Act that attests to,
and reports on, the assessment of compliance made by Custodian and delivered
pursuant to the preceding paragraph. Such attestation shall be in accordance
with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and
the Exchange Act.
 
Section 7.4.  Indemnification By Custodian. Custodian shall indemnify the
Originator, the Servicer, the Depositor, the Issuing Entity and each affiliate
of such parties and each Person who controls any of such parties (within the
meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act),
and the respective present and former directors, officers, employees and agents
of each of the foregoing, and shall hold each of them harmless from and against
any losses, damages, penalties, fines, forfeitures, legal fees and expenses and
related costs, judgments, and any other costs, fees and expenses that any of
them may sustain arising out of or based upon:
 
(a)   (i) any untrue statement of a material fact contained or alleged to be
contained in any information, report, certification, accountants' attestation or
other material provided under this Article VII by or on behalf of Custodian
(collectively, the "Custodian Information"), or (ii) the omission or alleged
omission to state in the Custodian Information a material fact required to be
stated in the Custodian Information or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading; provided, by way of clarification, that clause (ii) of this
paragraph shall be construed solely by reference to the Custodian Information
and not to any other information communicated in connection with a sale or
purchase of securities, without regard to whether the Custodian Information or
any portion thereof is presented together with or separately from such other
information; or
 
14

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(b)   any failure by Custodian to deliver any information, report,
certification, or other material when and as required under this Article VII,
other than a failure by Custodian to deliver the accountants’ attestation.
 
(c)   In the case of any failure of performance described in clause (b) of this
Section, other than a failure to deliver an accountants' attestation, Custodian
shall promptly reimburse the Servicer, the Issuing Entity, and the Depositor, as
applicable, and each Person responsible for the preparation, execution or filing
of any report required to be filed with the Commission with respect to the
Notes, or for execution of a certification pursuant to Rule 13a-14(d) or Rule
15d-14(d) under the Exchange Act with respect to the Notes, for all costs
reasonably incurred by each such party in order to obtain the information,
report, certification or other material not delivered as required by Custodian.
 
Section 7.5.   Indemnification of Custodian. The Issuing Entity, the Originator,
the Servicer and the Depositor shall indemnify Custodian, each affiliate of
Custodian and the respective present and former directors, officers, employees
and agents of Custodian, and shall hold each of them harmless from and against
any losses, damages, penalties, fines, forfeitures, legal fees and expenses and
related costs, judgments, and any other costs, fees and expenses that any of
them may sustain arising out of or based upon (i) any untrue statement of a
material fact contained or alleged to be contained in any information provided
under this Agreement by or on behalf of the Issuing Entity or the Depositor for
inclusion in any report filed with the Commission under the Exchange Act
(collectively, the “Depositor Information”), or (ii) the omission or alleged
omission to state in the Depositor Information a material fact required to be
stated in the Depositor Information or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading; provided, that clause (ii) of this paragraph shall be construed
solely by reference to the Depositor Information and not to any other
information communicated in connection with the sale or purchase of securities,
without regard to whether the Depositor Information or any portion thereof is
presented together with or separately form such other information; provided,
however, that the Issuing Entity may provide indemnification hereunder only
after payments required under Sections 5.04(b)(i) through 5.04(b)(ix) of the
Sale and Servicing Agreement have been paid.
 
[Signature Pages Follow]
 

 

15

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IN WITNESS WHEREOF, the parties hereto have caused their names to be signed
hereto by their respective officers thereunto duly authorized, all as of the
date first above written.
 
ORIGINATOR

CATERPILLAR FINANCIAL SERVICES
CORPORATION

By:  /s/ James A. Duensing 
Name: James A. Duensing
                                                                                                       
Title: Treasurer
 
SERVICER

CATERPILLAR FINANCIAL SERVICES
CORPORATION, as Servicer

By:  /s/ James A. Duensing 
Name: James A. Duensing
                                                                                                       
Title: Treasurer
 
DEPOSITOR

CATERPILLAR FINANCIAL FUNDING
CORPORATION, as Depositor

By:  /s/ James A. Duensing 
Name: James A. Duensing
                                                                                                       
Title: Treasurer
 

Custodial Agreement
 

--------------------------------------------------------------------------------

ISSUING ENTITY

CATERPILLAR FINANCIAL ASSET TRUST 2006-A

 
By:
CHASE BANK USA, NATIONAL ASSOCIATION, not in its individual capacity but solely
as Owner Trustee under the Trust Agreement

By:  /s/ Diane P. Ledger 
Name: Diane P. Ledger
                                                                                                       
Title: Assistant Vice President
 
INDENTURE TRUSTEE

U.S. BANK NATIONAL ASSOCIATION,
as Indenture Trustee

By: /s/ Melissa A. Rosal
Name: Melissa A. Rosal
                                                                                                       
Title: Vice President
 
CUSTODIAN

U.S. BANK NATIONAL ASSOCIATION,
as Custodian

By: /s/ Melissa A. Rosal 
Name: Melissa A. Rosal
                                                                                                       
Title: Vice President
 

 

Custodial Agreement
 

--------------------------------------------------------------------------------

EXHIBIT A  
 
CUSTODIAN CERTIFICATION
 
Certification No._____
 
[DATE]
 
To:
[DEPOSITOR]
[ISSUING ENTITY]
[INDENTURE TRUSTEE]

 

 
Re:
Custodial Agreement, dated as of June 1, 2006 (the "Custodial Agreement"), by
and among Caterpillar Financial Services Corporation (the "Originator"),
Caterpillar Financial Services Corporation, as Servicer (the "Servicer"),
Caterpillar Financial Funding Corporation (the "Depositor"), Caterpillar
Financial Asset Trust 2006-A (the "Issuing Entity"), U.S. Bank National
Association, as Indenture Trustee (the "Indenture Trustee") and U.S. Bank
National Association, as Custodian (the "Custodian")

 
Gentlemen:
 
[In accordance with the provisions of Section 4.1 of the above-referenced
Custodial Agreement, Custodian hereby certifies (i) that it has received the
Receivable Files delivered to it by the Originator, and (ii) that as to each
Receivable, Custodian holds such Receivable and the other documents in the
related Receivable File in its name as custodian solely on behalf of and for the
benefit of [the Depositor] [the Issuing Entity] [the Indenture Trustee], without
written notice (a) of any adverse claims, liens or encumbrances, (b) that any
Receivable was overdue or has been dishonored, (c) of evidence on the face of
any Receivable or other document in the Receivable File of any security interest
therein, or (d) of any defense against or claim to the Receivable by any other
party.] [In accordance with the provisions of Section 4.1 of the
above-referenced Custodial Agreement, Custodian hereby certifies that it has
received all of the Receivable Files identified on the Receivable Schedule (the
"Receivable Schedule") attached hereto dated as of [June 1, 2006]. The
undersigned, as Custodian, confirms that the Receivable number in each
Receivable File conforms to the respective Receivable number listed on the
Receivable Schedule.] Capitalized terms used herein without definition shall
have the meanings ascribed to them in the Custodial Agreement.
 
Custodian makes no representations or warranties as to the validity, legality,
sufficiency, enforceability, genuineness or prior recorded status of any of the
documents contained in each Receivable File or the collectability, insurability,
effectiveness or suitability of any Receivable.
 
A-1

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[Upon repurchase of the Receivables to which this Custodian Certification
relates and payment of the applicable repurchase price, the Receivables to which
this Custodian Certification relates shall be returned and released by Custodian
to the Person paying such repurchase price, and this Custodian Certification
shall be and be deemed to be canceled by Custodian and of no force and effect.]
 
__________________________________________
as Custodian

By_______________________________________
     Name:
     Title:
 

 

A-2

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EXHIBIT B  
 
REQUEST FOR RELEASE OF DOCUMENTS
 
[DATE]
 
To:
[Custodian]

 

 
Re:
Custodial Agreement, dated as of June 1, 2006, by and among Caterpillar
Financial Services Corporation (the "Originator"), Caterpillar Financial
Services Corporation, as Servicer (the "Servicer"), Caterpillar Financial
Funding Corporation (the "Depositor"), Caterpillar Financial Asset Trust 2006-A
(the "Issuing Entity"), U.S. Bank National Association, as Indenture Trustee
(the "Indenture Trustee") and U.S. Bank National Association, as Custodian
("Custodian")

 
In connection with the administration of the Receivables held by you as
Custodian under the above-referenced Custodial Agreement, [_________], on behalf
of [________], requests the release, and acknowledges receipt, of the following
for the Receivable described below, for the reason indicated:
 
A. Documents Released
 
_____ 1a. Installment Sale Contract or Lease b. Principal Balance ______
 
_____ 2. Other documents:_______________________________
                                                 _______________________________
                                                 _______________________________
                                                 _______________________________
 
B. Obligor's Name, Address & Zip Code:
 
C. Receivable Number:
 
D. Reason for Requesting Documents (check one)
 
_____ 1. Receivable Paid in Full or Payment to be Escrowed in Connection with
Payment in Full.
 
_____ 2. Receivable Repurchased Pursuant to the Purchase Agreement or the Sale
and Servicing Agreement.
 
_____ 3. Receivable Liquidated.
 
_____ 4. Receivable in Foreclosure or Repossession Proceedings.
 
_____ 5. Receivable to be modified or extended.
 
If box 1, 2 or 3 above is checked, and if all or part of Receivable File was
previously released to us, please release to us our previous receipt on file
with you, as well as any additional documents in your possession relating to the
above specified Receivable.
 
B-1

--------------------------------------------------------------------------------

If box 4 or 5 above is checked, upon our return of all of the above documents to
you as Custodian, please acknowledge your receipt by signing in the space
indicated below, and returning this form.
 
If box 5 above is checked, after giving effect to such release, the aggregate
Principal Balance of all Receivables released in connection with modifications
and extensions shall not exceed $[__________]. In addition, upon return of the
Receivable File, we are deemed to certify that the Receivable File as returned
contains the related Receivable as so modified and extended.
 
If box 1, 2 or 3 above is checked, this request is only valid if also executed
by the Depositor and the Indenture Trustee.
 
Documents released hereby in connection with a modification or extension must be
returned to the Custodian on the same Business Day of release.
 
CATERPILLAR FINANCIAL SERVICES
CORPORATION, as Servicer

By ___________________________________
      Name:
                                                                                                              Title:
                                                                                                             
Date:
 
[_______________________________________]

By ____________________________________
       Name:
       Title:
       Date:
Documents returned to Custodian:

____________________________
as Custodian

By_______________________________
Name:
Title:
Date:

B-2

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ANNEX 1
 
Authorized Representatives of Servicer
 

 

B-3

--------------------------------------------------------------------------------

EXHIBIT C  
 
TRANSFER CERTIFICATE
 
U.S. Bank National Association,
as Custodian under the
Custodial Agreement (defined below)
209 South LaSalle Street, Suite 300,
Chicago, Illinois 60604
[DATE]
 

 
Re:
Custodial Agreement, dated as of June 1, 2006 (the "Custodial Agreement"), by
and among Caterpillar Financial Services Corporation (the "Originator"),
Caterpillar Financial Services Corporation, as Servicer (the "Servicer"),
Caterpillar Financial Funding Corporation (the "Depositor"), Caterpillar
Financial Asset Trust 2006-A (the "Issuing Entity"), U.S. Bank National
Association, as Indenture Trustee (the "Indenture Trustee") and U.S. Bank
National Association, as Custodian ("Custodian")

To whom it may concern:
 
Pursuant to Sections 3.1 and  4.1 of the above-referenced Custodial Agreement
(capitalized terms used herein but not otherwise defined shall have the same
meanings assigned to such terms in the Custodial Agreement), we hereby advise
you of the Transfer by the undersigned to [the Depositor][the Issuing
Entity][the Indenture Trustee] of the Receivables identified on the Receivable
Schedule[s] attached [hereto] [to the [Depositor's Custodian Certification]
[Issuing Entity's Custodian Certification] with respect to the undersigned which
we are delivering to you for cancellation]. You are instructed to hold such
Receivables and the related Receivable Files on behalf of and for the benefit of
[the Depositor] [the Issuing Entity] [the Indenture Trustee] and to deliver to
[the Depositor][the Issuing Entity][the Indenture Trustee] a [Depositor's]
[Issuing Entity's] [Trustee's] Custodian Certification acknowledging that you
hold such Receivables and the related Receivable Files on behalf of and for the
benefit of such recipient.
 
Very truly yours,

By ________________________________________
       Name:
       Title:
 
The Custodian hereby acknowledges receipt of the foregoing instructions and
agrees to hold such Receivables and the related Receivable Files solely on
behalf of and for the benefit of [the Depositor] [the Issuing Entity] [the
Indenture Trustee] pursuant to the Custodial Agreement.
 
U.S. BANK NATIONAL ASSOCIATION

By: ________________________________
Name:
Title:

 

C-1

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EXHIBIT D
 
APPLICABLE SERVICING CRITERIA
 
The assessment of compliance to be delivered by the Custodian shall address, at
a minimum, the criteria identified as below as "Applicable Servicing Criteria":

Servicing Criteria
Applicable Servicing Criteria
Reference
Criteria
 
 
General Servicing Considerations
 
1122(d)(1)(i)
Policies and procedures are instituted to monitor any performance or other
triggers and events of default in accordance with the transaction agreements.
 
1122(d)(1)(ii)
If any material servicing activities are outsourced to third parties, policies
and procedures are instituted to monitor the third party's performance and
compliance with such servicing activities.
 
1122(d)(1)(iii)
Any requirements in the transaction agreements to maintain a back-up servicer
for the pool assets are maintained.
 
1122(d)(1)(iv)
A fidelity bond and errors and omissions policy is in effect on the party
participating in the servicing function throughout the reporting period in the
amount of coverage required by and otherwise in accordance with the terms of the
transaction agreements.
 
 
Cash Collection and Administration
 
1122(d)(2)(i)
Payments on pool assets are deposited into the appropriate custodial bank
accounts and related bank clearing accounts no more than two business days
following receipt, or such other number of days specified in the transaction
agreements.
 
1122(d)(2)(ii)
Disbursements made via wire transfer on behalf of an obligor or to an investor
are made only by authorized personnel.
 
1122(d)(2)(iii)
Advances of funds or guarantees regarding collections, cash flows or
distributions, and any interest or other fees charged for such advances, are
made, reviewed and approved as specified in the transaction agreements.
 
1122(d)(2)(iv)
The related accounts for the transaction, such as cash reserve accounts or
accounts established as a form of overcollateralization, are separately
maintained (e.g., with respect to commingling of cash) as set forth in the
transaction agreements.
 
1122(d)(2)(v)
Each custodial account is maintained at a federally insured depository
institution as set forth in the transaction agreements. For purposes of this
criterion, "federally insured depository institution" with respect to a foreign
financial institution means a foreign financial institution that meets the
requirements of Rule 13k-1(b)(1) of the Securities Exchange Act.
 
1122(d)(2)(vi)
Unissued checks are safeguarded so as to prevent unauthorized access.
 
1122(d)(2)(vii)
Reconciliations are prepared on a monthly basis for all asset-backed securities
related bank accounts, including custodial accounts and related bank clearing
accounts. These reconciliations are (A) mathematically accurate; (B) prepared
within 30 calendar days after the bank statement cutoff date, or such other
number of days specified in the transaction agreements; (C) reviewed and
approved by someone other than the person who prepared the reconciliation; and
(D) contain explanations for reconciling items. These reconciling items are
resolved within 90 calendar days of their original identification, or such other
number of days specified in the transaction agreements.
 
 
Investor Remittances and Reporting
 
1122(d)(3)(i)
Reports to investors, including those to be filed with the Commission, are
maintained in accordance with the transaction agreements and applicable
Commission requirements. Specifically, such reports (A) are prepared in
accordance with timeframes and other terms set forth in the transaction
agreements; (B) provide information calculated in accordance with the terms
specified in the transaction agreements; (C) are filed with the Commission as
required by its rules and regulations; and (D) agree with investors' or the
trustee's records as to the total unpaid principal balance and number of pool
assets serviced by the Servicer.
 
1122(d)(3)(ii)
Amounts due to investors are allocated and remitted in accordance with
timeframes, distribution priority and other terms set forth in the transaction
agreements.
 
1122(d)(3)(iii)
Disbursements made to an investor are posted within two business days to the
Servicer's investor records, or such other number of days specified in the
transaction agreements.
 
1122(d)(3)(iv)
Amounts remitted to investors per the investor reports agree with cancelled
checks, or other form of payment, or custodial bank statements.
 
 
Pool Asset Administration
 
1122(d)(4)(i)
Collateral or security on pool assets is maintained as required by the
transaction agreements or related asset pool documents.
ü
1122(d)(4)(ii)
Pool asset and related documents are safeguarded as required by the transaction
agreements
ü
1122(d)(4)(iii)
Any additions, removals or substitutions to the asset pool are made, reviewed
and approved in accordance with any conditions or requirements in the
transaction agreements.
 
1122(d)(4)(iv)
Payments on pool assets, including any payoffs, made in accordance with the
related pool asset documents are posted to the Servicer's obligor records
maintained no more than two business days after receipt, or such other number of
days specified in the transaction agreements, and allocated to principal,
interest or other items (e.g., escrow) in accordance with the related asset pool
documents.
 
1122(d)(4)(v)
The Servicer's records regarding the pool assets agree with the Servicer's
records with respect to an obligor's unpaid principal balance.
 
1122(d)(4)(vi)
Changes with respect to the terms or status of an obligor's pool asset (e.g.,
loan modifications or re-agings) are made, reviewed and approved by authorized
personnel in accordance with the transaction agreements and related pool asset
documents.
 
1122(d)(4)(vii)
Loss mitigation or recovery actions (e.g., forbearance plans, modifications and
deeds in lieu of foreclosure, foreclosures and repossessions, as applicable) are
initiated, conducted and concluded in accordance with the timeframes or other
requirements established by the transaction agreements.
 
1122(d)(4)(viii)
Records documenting collection efforts are maintained during the period a pool
asset is delinquent in accordance with the transaction agreements. Such records
are maintained on at least a monthly basis, or such other period specified in
the transaction agreements, and describe the entity's activities in monitoring
delinquent pool assets including, for example, phone calls, letters and payment
rescheduling plans in cases where delinquency is deemed temporary (e.g., illness
or unemployment).
 
1122(d)(4)(ix)
Adjustments to interest rates or rates of return for pool assets with variable
rates are computed based on the related pool asset documents.
 
1122(d)(4)(x)
Regarding any funds held in trust for an obligor (such as escrow accounts): (A)
such funds are analyzed, in accordance with the obligor's pool asset documents,
on at least an annual basis, or such other period specified in the transaction
agreements; (B) interest on such funds is paid, or credited, to obligors in
accordance with applicable pool asset documents and state laws; and (C) such
funds are returned to the obligor within 30 calendar days of full repayment of
the related pool assets, or such other number of days specified in the
transaction agreements.
 
1122(d)(4)(xi)
Payments made on behalf of an obligor (such as tax or insurance payments) are
made on or before the related penalty or expiration dates, as indicated on the
appropriate bills or notices for such payments, provided that such support has
been received by the servicer at least 30 calendar days prior to these dates, or
such other number of days specified in the transaction agreements.
 
1122(d)(4)(xii)
Any late payment penalties in connection with any payment to be made on behalf
of an obligor are paid from the servicer's funds and not charged to the obligor,
unless the late payment was due to the obligor's error or omission.
 
1122(d)(4)(xiii)
Disbursements made on behalf of an obligor are posted within two business days
to the obligor's records maintained by the servicer, or such other number of
days specified in the transaction agreements.
 
1122(d)(4)(xiv)
Delinquencies, charge-offs and uncollectible accounts are recognized and
recorded in accordance with the transaction agreements.
 
1122(d)(4)(xv)
Any external enhancement or other support, identified in Item 1114(a)(1) through
(3) or Item 1115 of Regulation AB, is maintained as set forth in the transaction
agreements.
 

D-1

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