Exhibit 10.1

 

 


PURCHASE AGREEMENT


 


dated as of February 28, 2014


 


between


 


USAA FEDERAL SAVINGS BANK


 


and


 


USAA ACCEPTANCE, LLC


 

 


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TABLE OF CONTENTS


 


	 	Page
	 	 
	ARTICLE I        DEFINITIONS
    AND USAGE	1
	 	 
	SECTION 1.1	 	Definitions	1
	 	 	 	 
	SECTION 1.2	 	Other Interpretive Provisions	1
	 	 	 	 
	ARTICLE II        PURCHASE	2
	 	 	 	 
	SECTION 2.1	 	Agreement to Sell and Contribute on the Closing Date	2
	 	 	 	 
	SECTION 2.2	 	Consideration and Payment	2
	 	 	 	 
	ARTICLE III        
    REPRESENTATIONS, WARRANTIES AND COVENANTS	2
	 	 
	SECTION 3.1	 	Representations and Warranties of the Bank	2
	 	 	 	 
	SECTION 3.2	 	Representations and Warranties of the Bank as to each
    Receivable	4
	 	 	 	 
	SECTION 3.3	 	Repurchase upon Breach	4
	 	 	 	 
	SECTION 3.4	 	Protection of Title	4
	 	 	 	 
	SECTION 3.5	 	Other Liens or Interests	5
	 	 	 	 
	SECTION 3.6	 	Perfection Representations, Warranties and Covenants	5
	 	 	 	 
	ARTICLE IV         MISCELLANEOUS	6
	 	 
	SECTION 4.1	 	Transfers Intended as Sale; Security Interest	6
	 	 	 	 
	SECTION 4.2	 	Notices, Etc	7
	 	 	 	 
	SECTION 4.3	 	Choice of Law	7
	 	 	 	 
	SECTION 4.4	 	Headings	7
	 	 	 	 
	SECTION 4.5	 	Counterparts	7
	 	 	 	 
	SECTION 4.6	 	Amendment	7
	 	 	 	 
	SECTION 4.7	 	Waivers	8
	 	 	 	 
	SECTION 4.8	 	Entire Agreement	8
	 	 	 	 
	SECTION 4.9	 	Severability of Provisions	9
	 	 	 	 
	SECTION 4.10	 	Binding Effect	9
	 	 	 	 
	SECTION 4.11	 	Acknowledgment and Agreement	9
	 	 	 	 
	SECTION 4.12	 	Cumulative Remedies	9
	 	 	 	 
	SECTION 4.13	 	Nonpetition Covenant	9
	 	 	 	 
	SECTION 4.14	 	Submission to Jurisdiction; Waiver of Jury Trial	10


 





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EXHIBITS


 


	Exhibit A	 	Form of Assignment Pursuant to Purchase Agreement
	Schedule I	 	Representations and Warranties With Respect to the Receivables
	Schedule II	 	Perfection Representations, Warranties and Covenants


 








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THIS PURCHASE AGREEMENT is made and
entered into as of February 28, 2014 (as amended from time to time, this “Agreement”) by USAA FEDERAL SAVINGS
BANK, a federally chartered savings association (the “Bank”), and USAA ACCEPTANCE, LLC, a Delaware
limited liability company (the “Purchaser”).


 


WITNESSETH:


 


WHEREAS, the Purchaser desires to purchase
from the Bank a portfolio of motor vehicle receivables, including retail motor vehicle installment loans that are secured by new
and used automobiles and light-duty trucks; and


 


WHEREAS, the Bank is willing to sell such
portfolio of motor vehicle receivables and related property to the Purchaser on the terms and conditions set forth in this Agreement.


 


NOW, THEREFORE, in consideration of the
premises and the mutual agreements set forth herein, the parties hereto agree as follows:


 


ARTICLE
I



DEFINITIONS AND USAGE


 


SECTION 1.1 Definitions. Except as
otherwise defined herein or as the context may otherwise require, capitalized terms used but not otherwise defined herein are
defined in Appendix A to the Sale and Servicing Agreement dated as of the date hereof (as from time to time amended, supplemented
or otherwise modified and in effect, the “Sale and Servicing Agreement”) among USAA Auto Owner Trust 2014-1,
the Bank, as servicer, the Purchaser, as seller, and U.S. Bank National Association, as indenture trustee, which also contains
rules as to usage that are applicable herein.


 


SECTION 1.2 Other Interpretive Provisions.
For purposes of this Agreement, unless the context otherwise requires: (a) accounting terms not otherwise defined in this Agreement,
and accounting terms partly defined in this Agreement to the extent not defined, shall have the respective meanings given to them
under GAAP (provided, that, to the extent that the definitions in this Agreement and GAAP conflict, the definitions in
this Agreement shall control); (b) terms defined in Article 9 of the UCC as in effect in the relevant jurisdiction and not otherwise
defined in this Agreement are used as defined in that Article; (c) the words “hereof,” “herein” and “hereunder”
and words of similar import refer to this Agreement as a whole and not to any particular provision of this Agreement; (d) references
to any Article, Section, Schedule, Appendix or Exhibit are references to Articles, Sections, Schedules, Appendices and Exhibits
in or to this Agreement and references to any paragraph, subsection, clause or other subdivision within any Section or definition
refer to such paragraph, subsection, clause or other subdivision of such Section or definition; (e) the term “including”
and all variations thereof means “including without limitation”; (f) except as otherwise expressly provided herein,
references to any law or regulation refer to that law or regulation as amended from time to time and include any successor law
or regulation; (g) references to any Person include that Person’s successors and assigns; and (h) unless the context otherwise
requires, defined terms shall be equally applicable to both the singular and plural forms.


 




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ARTICLE
II



PURCHASE


 


SECTION 2.1 Agreement to Sell and Contribute
on the Closing Date. On the terms and subject to the conditions set forth in this Agreement, the Bank agrees to transfer,
assign, set over, sell and otherwise convey to the Purchaser without recourse (subject to the obligations herein) on the Closing
Date all of its right, title and interest in, to and under the Receivables, the Collections after the Cut-Off Date, the Receivable
Files and the Related Security relating thereto, described in the assignment in the form of Exhibit A (the “Assignment”)
delivered on the Closing Date (the “Purchased Assets”) having a Net Pool Balance as of the Cut-Off Date equal
to $503,778,943.57, which sale shall be effective as of the Cut-Off Date. The sale, transfer, assignment and conveyance made hereunder
does not constitute and is not intended to result in an assumption by the Purchaser of any obligation of the Originator to the
Obligors or any other Person in connection with the Receivables or the other assets and properties conveyed hereunder or any agreement,
document or instrument related thereto.


 


SECTION 2.2 Consideration and Payment.
In consideration of the transfer of the Purchased Assets conveyed to the Purchaser on the Closing Date, the Purchaser shall pay
to the Bank on such date an amount equal to the estimated fair market value of the Purchased Assets, as determined by the Purchaser
and the Bank prior to sale, which amount shall be paid (a) in cash to the Bank and (b) by a capital contribution by the Bank of
an undivided interest in such Purchased Assets that increases its equity interest in the Purchaser in an amount equal to the estimated
fair market value of the Purchased Assets over the amount of cash paid by the Purchaser to the Bank.


 


ARTICLE
III



REPRESENTATIONS, WARRANTIES AND COVENANTS


 


SECTION 3.1 Representations and Warranties
of the Bank. The Bank makes the following representations and warranties as of the Closing Date on which the Purchaser will
be deemed to have relied in acquiring the Purchased Assets. The representations and warranties will survive the conveyance of
the Purchased Assets to the Purchaser pursuant to this Agreement, the conveyance of the Purchased Assets to the Issuer pursuant
to the Sale and Servicing Agreement and the Grant thereof by the Issuer to the Indenture Trustee pursuant to the Indenture:


 


(a) Existence and Power. The Bank
is a federally chartered savings association validly existing and in good standing under the laws of the United States and has,
in all material respects, all power and authority required to carry on its business as now conducted. The Bank has obtained all
necessary licenses and approvals in each jurisdiction where the failure to do so would materially and adversely affect the ability
of the Bank to perform its obligations under the Transaction Documents or the enforceability or collectibility of the Receivables
or any other part of the Purchased Assets.


 


(b) Authorization and No Contravention.
The execution, delivery and performance by the Bank of each Transaction Document to which it is a party (i) have been duly authorized


 


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by all necessary action on the part of the
Bank and (ii) do not contravene or constitute a default under (A) any applicable law, rule or regulation, (B) its organizational
documents or (C) any material agreement, contract, order or other instrument to which it is a party or its property is subject
(other than violations which do not affect the legality, validity or enforceability of any of such agreements and which, individually
or in the aggregate, would not materially and adversely affect the transactions contemplated by, or the Bank’s ability to
perform its obligations under, the Transaction Documents).


 


(c) No Consent Required. No approval
or authorization by, or filing with, any Governmental Authority is required in connection with the execution, delivery and performance
by the Bank of any Transaction Document other than (i) UCC filings, (ii) approvals and authorizations that have previously been
obtained and filings that have previously been made and (iii) approvals, authorizations or filings which, if not obtained or made,
would not have a material adverse effect on the enforceability or collectibility of the Receivables or any other part of the Purchased
Assets or would not materially and adversely affect the ability of the Bank to perform its obligations under the Transaction Documents.


 


(d) Binding Effect. Each Transaction
Document to which the Bank is a party constitutes the legal, valid and binding obligation of the Bank enforceable against the
Bank in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, receivership, conservatorship or other similar laws affecting creditors’ rights generally and, if applicable,
the rights of creditors of federally chartered savings associations from time to time in effect or by general principles of equity.


 


(e) No Proceedings. There are no
actions, suits or Proceedings pending or, to the knowledge of the Bank, threatened against the Bank before or by any Governmental
Authority that (i) assert the invalidity or unenforceability of this Agreement or any of the other Transaction Documents, (ii)
seek to prevent the issuance of the Notes or the consummation of any of the transactions contemplated by this Agreement or any
of the other Transaction Documents, (iii) seek any determination or ruling that would materially and adversely affect the performance
by the Bank of its obligations under this Agreement or any of the other Transaction Documents, or (iv) relate to the Bank that
would materially and adversely affect the federal or Applicable Tax State income, excise, franchise or similar tax attributes
of the Notes.


 


(f) Lien Filings. The Bank is not
aware of any material judgment, ERISA or tax lien filings against the Bank.


 


(g) Official Record. So long as the
Notes remain outstanding, the Transaction Documents to which the Bank is a party shall be treated as an official record of the
Bank within the meaning of Section 13(e) of the Federal Deposit Insurance Act (12 U.S.C. Section 1823(e)).


 


(h) Sale Treatment. The transactions
contemplated by the Transaction Documents and the Sale Agreement, dated as of the date hereof, between the Purchaser and United
Services Automobile Association, a Texas reciprocal interinsurance exchange, result in sale treatment with respect to the Receivables
for financial accounting purposes on the standalone balance sheet of the Bank in accordance with generally accepted accounting
principles.


 


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(i) Bank Approval. Each of the Transaction
Documents to which the Bank is a party has been approved by the board of directors, the executive committee or the loan committee
of the Bank and such approval is reflected in the minutes of the board of directors, executive committee or loan committee.


 


SECTION 3.2 Representations and Warranties
of the Bank as to each Receivable. The Bank hereby makes the representations and warranties set forth on Schedule I
as to the Receivables, sold, contributed, transferred, assigned, set over, sold and otherwise conveyed to the Purchaser under
this Agreement on which such representations and warranties the Purchaser relies in acquiring the Receivables. Such representations
and warranties shall survive the sale of the Receivables to the Issuer under the Sale and Servicing Agreement, and the Grant of
the Receivables by the Issuer to the Indenture Trustee pursuant to the Indenture. Notwithstanding any statement to the contrary
contained herein or in any other Transaction Document, the Bank shall not be required to notify any insurer with respect to any
Insurance Policy obtained by an Obligor.


 


SECTION 3.3 Repurchase upon Breach.
Upon discovery by or notice to the Purchaser or the Bank of a breach of any of the representations and warranties set forth in
Section 3.2 at the time such representations and warranties were made which materially and adversely affects the interests
of the Issuer or the Noteholders, the party discovering such breach or receiving such notice shall give prompt written notice
thereof to the other party; provided, that delivery of the Servicer’s Certificate, which identifies that Receivables
are being or have been repurchased, shall be deemed to constitute prompt notice by the Servicer (if the Bank is the Servicer)
of such breach; provided, further, that the failure to give such notice shall not affect any obligation of
the Bank hereunder. If the Bank does not correct or cure such breach prior to the end of the Collection Period which includes
the 60th day (or, if the Bank elects, an earlier date) after the date that the Bank became aware or was notified of such breach,
then the Bank shall purchase any Receivable materially and adversely affected by such breach from the Purchaser on the Payment
Date following the end of such Collection Period. Any such breach or failure will be deemed to not have a material and adverse
effect if such breach or failure does not affect the ability of the Purchaser (or its assignee) to collect, receive and retain
timely payment in full on such Receivable, including Liquidation Proceeds. Any such purchase by the Bank shall be at a price equal
to the Repurchase Price. In consideration for such repurchase, the Bank shall make (or shall cause to be made) a payment to the
Purchaser equal to the Repurchase Price by depositing such amount into the Collection Account prior to 11:00 a.m., New York City
time on such Payment Date. Upon payment of such Repurchase Price by the Bank, the Purchaser shall release and shall execute and
deliver such instruments of release, transfer or assignment, in each case without recourse or representation, as may be reasonably
requested by the Bank to evidence such release, transfer or assignment or more effectively vest in the Bank or its designee any
Receivable repurchased pursuant hereto. It is understood and agreed that the obligation of the Bank to repurchase any Receivable
as described above shall constitute the sole remedy respecting such breach available to the Purchaser.


 


SECTION 3.4 Protection of Title.


 


(a) The Bank shall authorize and file such
financing statements and cause to be authorized and filed such continuation and other statements, all in such manner and in such


 


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places as may be required by law fully to
preserve, maintain and protect the interest of the Purchaser under this Agreement in the Receivables as well as any subsequent
assignee of the Receivables (other than any Related Security with respect thereto, to the extent that the interest of the Purchaser
therein cannot be perfected by the filing of a financing statement). The Bank shall deliver (or cause to be delivered) to the
Purchaser as well as any subsequent assignee of the Receivables file-stamped copies of, or filing receipts for, any document filed
as provided above, as soon as available following such filing.


 


(b) The Bank will notify the Purchaser in
writing within ten (10) days following the occurrence of (i) any change in the Bank’s organizational structure as a federally
chartered savings association, (ii) any change in the Bank’s “location” (within the meaning of Section 9-307
of the UCC of all applicable jurisdictions) and (iii) any change in the Bank’s name and shall have taken all action prior
to making such change (or shall have made arrangements to take such action substantially simultaneously with such change, if it
is not possible to take such action in advance) reasonably necessary or advisable in the opinion of the Purchaser to amend all
previously filed financing statements or continuation statements described in paragraph (a) above.


 


(c) The Bank shall maintain (or shall cause
the Servicer to maintain) its computer systems so that, from time to time after the conveyance under this Agreement of the Receivables,
the master computer records (including any backup archives, it being understood that any such backup archives may not reflect
such interest until thirty-five (35) days after the applicable changes are made to such master computer records) that refer to
a Receivable shall indicate clearly the interest of the Purchaser (or any subsequent assignee of the Purchaser) in such Receivable
and that such Receivable is owned by such Person. Indication of such Person’s interest in a Receivable shall not be deleted
from or modified on such computer systems until, and only until, the related Receivable shall have been paid in full or repurchased.


 


(d) If at any time the Bank shall propose
to sell, grant a security interest in or otherwise transfer any interest in motor vehicle receivables to any prospective purchaser,
lender or other transferee, the Bank shall give to such prospective purchaser, lender or other transferee computer tapes, records
or printouts (including any restored from backup archives) that, if they shall refer in any manner whatsoever to any Receivable,
shall indicate clearly that such Receivable has been sold and is owned by the Purchaser (or any subsequent assignee of the Purchaser).


 


SECTION 3.5 Other Liens or Interests.
Except for the conveyances and grants of security interests pursuant to this Agreement and the other Transaction Documents, the
Bank shall not sell, pledge, assign or transfer the Receivables or other property transferred to the Purchaser to any other Person,
or grant, create, incur, assume or suffer to exist any Lien (other than Permitted Liens) on any interest therein, and the Bank
shall defend the right, title and interest of the Purchaser in, to and under such Receivables or other property transferred to
the Purchaser against all claims of third parties claiming through or under the Bank.


 


SECTION 3.6 Perfection Representations,
Warranties and Covenants. The Bank hereby makes the perfection representations, warranties and covenants set forth on Schedule
II


 


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hereto to the Purchaser and the Purchaser
shall be deemed to have relied on such representations, warranties and covenants in acquiring the Purchased Assets.


 


ARTICLE
IV



MISCELLANEOUS


 


SECTION 4.1 Transfers Intended as Sale;
Security Interest.


 


(a) Each of the parties hereto expressly
intends and agrees that the transfers contemplated and effected under this Agreement are complete and absolute sales and contributions
rather than pledges or assignments of only a security interest and shall be given effect as such for all purposes. It is further
the intention of the parties hereto that the Receivables and related Purchased Assets shall not be treated as property of the
Bank by the FDIC or other governmental authority acting as conservator or receiver of the Bank in a conservatorship, receivership,
insolvency or other similar proceeding in respect of the Bank under the Federal Deposit Insurance Act, 12 U.S.C. Section 1811
et seq. or other applicable law. The sales and transfers by the Bank of the Receivables and related Purchased Assets hereunder
are and shall be without recourse to, or representation or warranty (express or implied) by, the Bank, except as otherwise specifically
provided herein. The limited rights of recourse specified herein against the Bank are intended to provide a remedy for breach
of representations and warranties relating to the condition of the property sold, rather than to the collectibility of the Receivables.


 


(b) Notwithstanding the foregoing, in the
event that the Receivables and other Purchased Assets are held to be property of the Bank, or if for any reason this Agreement
is held or deemed to create indebtedness or a security interest in the Receivables and other Purchased Assets, then it is intended
that:


 


(i) This Agreement shall be deemed
to be a security agreement within the meaning of Articles 8 and 9 of the New York UCC and the UCC of any other applicable jurisdiction;


 


(ii) The conveyance provided for
in Section 2.1 shall be deemed to be a grant by the Bank of, and the Bank hereby grants to the Purchaser, a security interest
in all of its right (including the power to convey title thereto), title and interest, whether now owned or hereafter acquired,
in and to the Receivables and other Purchased Assets, to secure such indebtedness and the performance of the obligations of the
Bank hereunder;


 


(iii) The possession by the Purchaser
or its agent of the Receivable Files and any other property as constitute instruments, money, negotiable documents or chattel
paper shall be deemed to be “possession by the secured party” or possession by the purchaser or a Person designated
by such purchaser, for purposes of perfecting the security interest pursuant to the New York UCC and the UCC of any other applicable
jurisdiction; and


 


(iv) Notifications to Persons holding
such property, and acknowledgments, receipts or confirmations from Persons holding such property, shall be deemed to be notifications
to, or acknowledgments, receipts or confirmations from, bailees or agents


 


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(as applicable) of the Purchaser
for the purpose of perfecting such security interest under applicable law.


 


SECTION 4.2 Notices, Etc. All demands,
notices and communications hereunder shall be in writing and shall be delivered or mailed by registered or certified first-class
United States mail, postage prepaid, hand delivery, prepaid courier service, by facsimile or, if so provided on Schedule II
to the Sale and Servicing Agreement, by electronic transmission, and addressed in each case as specified on Schedule II
to the Sale and Servicing Agreement or at such other address as shall be designated by any of the specified addressees in
a written notice to the other parties hereto. Delivery will be deemed to have been given and made: (i) upon delivery or, in the
case of a letter mailed by registered or certified first-class United States mail, postage prepaid, three days after deposit in
the mail, (ii) in the case of a facsimile, when receipt is confirmed by telephone, reply email or reply facsimile from the recipient,
(iii) in the case of electronic transmission, when receipt is confirmed by telephone or reply email from the recipient and (iv)
in the case of an electronic posting to a password-protected website to which the recipient has been provided access, upon delivery
(without the requirement of confirmation of receipt) and notice (including email) to such recipient stating that such electronic
posting has occurred.


 


SECTION
4.3 Choice of Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE INTERNAL, SUBSTANTIVE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE RULES THEREOF RELATING TO
CONFLICTS OF LAW, OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.


 


SECTION 4.4 Headings. The section
headings hereof have been inserted for convenience only and shall not be construed to affect the meaning, construction or effect
of this Agreement.


 


SECTION 4.5 Counterparts. This Agreement
may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all of such counterparts
shall together constitute but one and the same instrument.


 


SECTION 4.6 Amendment.


 


(a) Any term or provision of this Agreement
may be amended by the Bank and the Purchaser without the consent of the Indenture Trustee, any Noteholder, the Issuer, the Owner
Trustee or any other Person subject to the satisfaction of one of the following conditions:


 


(i) the Bank or the Purchaser delivers
to the Indenture Trustee: (a) an Opinion of Counsel to the effect that such amendment will not materially and adversely affect
the interests of the Noteholders and (b) an Officer’s Certificate of the Bank or the Purchaser, respectively, to the effect
that such amendment will not materially and adversely affect the interests of the Noteholders; or


 


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(ii) the Rating Agency Condition
is satisfied with respect to such amendment and the Bank or the Purchaser notifies the Indenture Trustee in writing that the Rating
Agency Condition is satisfied with respect to such amendment.


 


(b) This Agreement may also be amended from
time to time by the Bank and the Purchaser, with the consent of the Holders of Notes evidencing not less than a majority of the
Outstanding Note Balance of the Controlling Class, voting as a single class, for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Agreement or of modifying in any manner the rights of the Noteholders.
It will not be necessary for the consent of Noteholders to approve the particular form of any proposed amendment or consent, but
it will be sufficient if such consent approves the substance thereof. The manner of obtaining such consents (and any other consents
of Noteholders provided for in this Agreement) and of evidencing the authorization of the execution thereof by Noteholders will
be subject to such reasonable requirements as the Indenture Trustee may prescribe, including the establishment of record dates
pursuant to the Note Depository Agreement.


 


(c) Prior to the execution of any amendment
pursuant to this Section 4.6, the Bank shall provide written notification of the substance of such amendment to each Rating
Agency; and promptly after the execution of any such amendment or consent, the Bank shall furnish a copy of such amendment or
consent to each Rating Agency and the Indenture Trustee; provided, that no amendment pursuant to this Section 4.6
shall be effective which affects the rights, protections or duties of the Indenture Trustee or the Owner Trustee without the prior
written consent of such Person (which consent shall not be unreasonably withheld or delayed).


 


(d) Prior to the execution of any amendment
pursuant to this Section 4.6, the Owner Trustee and the Indenture Trustee shall be entitled to receive and conclusively
rely upon an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this Agreement and
that all conditions precedent to the execution and delivery of such amendment have been satisfied. The Owner Trustee and the Indenture
Trustee may, but shall not be obligated to, enter into or execute on behalf of the Issuer any such amendment which adversely affects
the Owner Trustee’s or the Indenture Trustee’s, as applicable, own rights, privileges, indemnities, duties or obligations
under this Agreement.


 


SECTION 4.7 Waivers. No failure or
delay on the part of the Purchaser, the Servicer, the Bank, the Issuer or the Indenture Trustee in exercising any power or right
hereunder (to the extent such Person has any power or right hereunder) shall operate as a waiver thereof, nor shall any single
or partial exercise of any such power or right preclude any other or further exercise thereof or the exercise of any other power
or right. No notice to or demand on the Purchaser or the Bank in any case shall entitle it to any notice or demand in similar
or other circumstances. No waiver or approval by either party under this Agreement shall, except as may otherwise be stated in
such waiver or approval, be applicable to subsequent transactions. No waiver or approval under this Agreement shall require any
similar or dissimilar waiver or approval thereafter to be granted hereunder.


 


SECTION 4.8 Entire Agreement. The
Transaction Documents contain a final and complete integration of all prior expressions by the parties hereto with respect to
the subject matter thereof and shall constitute the entire agreement among the parties hereto with respect to


 


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the subject matter thereof, superseding all
prior oral or written understandings. There are no unwritten agreements among the parties hereto with respect to the subject matter
hereof.


 


SECTION 4.9 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.


 


SECTION 4.10 Binding Effect. This
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.
This Agreement shall create and constitute the continuing obligations of the parties hereto in accordance with its terms, and
shall remain in full force and effect until such time as the parties hereto shall agree.


 


SECTION 4.11 Acknowledgment and Agreement.
By execution below, the Bank expressly acknowledges and consents to the sale of the Purchased Assets and the assignment of all
rights and obligations of the Bank related thereto by the Purchaser to the Issuer pursuant to the Sale and Servicing Agreement
and the Grant of a security interest in the Receivables and the other Purchased Assets by the Issuer to the Indenture Trustee
pursuant to the Indenture for the benefit of the Noteholders. In addition, the Bank hereby acknowledges and agrees that for so
long as the Notes are outstanding, the Indenture Trustee will have the right to exercise all powers, privileges and claims of
the Purchaser under this Agreement pursuant to the Grant of such security interest in the event that the Purchaser shall fail
to exercise the same.


 


SECTION 4.12 Cumulative Remedies.
The remedies herein provided are cumulative and not exclusive of any remedies provided by law.


 


SECTION 4.13 Nonpetition Covenant.
Each party hereto agrees that, prior to the date which is one year and one day after payment in full of all obligations of each
Bankruptcy Remote Party in respect of all securities issued by any Bankruptcy Remote Party (i) such party hereto shall not authorize
any Bankruptcy Remote Party to commence a voluntary winding-up or other voluntary case or other Proceeding seeking liquidation,
reorganization or other relief with respect to such Bankruptcy Remote Party or its debts under any bankruptcy, insolvency or other
similar law now or hereafter in effect in any jurisdiction or seeking the appointment of an administrator, a trustee, receiver,
liquidator, custodian or other similar official with respect to such Bankruptcy Remote Party or any substantial part of its property
or to consent to any such relief or to the appointment of or taking possession by any such official in an involuntary case or
other Proceeding commenced against such Bankruptcy Remote Party, or to make a general assignment for the benefit of its creditors
generally, any party hereto or any other creditor of such Bankruptcy Remote Party, and (ii) such party shall not commence, join
with any other Person in commencing or institute with any other Person any Proceeding against such Bankruptcy Remote Party under
any bankruptcy, reorganization, liquidation or insolvency law or statute now or hereafter in effect in any jurisdiction; provided,
that the foregoing shall in no way limit the rights of the parties hereto to pursue any other creditor rights or remedies that
such Persons may have against the Issuer under applicable law. This Section shall survive the termination of this Agreement.


 


	708317988
    14443670	-9-	Purchase
    Agreement (USAA 2014-1)







    	 



    	



    

SECTION 4.14 Submission to Jurisdiction;
Waiver of Jury Trial. Each of the parties hereto hereby irrevocably and unconditionally:


 


(a) submits for itself and its property
in any legal action or Proceeding relating to this Agreement or any documents executed and delivered in connection herewith, or
for recognition and enforcement of any judgment in respect thereof, to the nonexclusive general jurisdiction of the courts of
the State of New York, the courts of the United States of America for the Southern District of New York and appellate courts from
any thereof;


 


(b) consents that any such action or Proceeding
may be brought and maintained in such courts and waives any objection that it may now or hereafter have to the venue of such action
or Proceeding in any such court or that such action or Proceeding was brought in an inconvenient court and agrees not to plead
or claim the same;


 


(c) agrees that service of process in any
such action or Proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar
form of mail), postage prepaid, to such Person at its address determined in accordance with Section 4.2;


 


(d) agrees that nothing herein shall affect
the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction;
and


 


(e) to the extent permitted by applicable
law, each party hereto irrevocably waives all right of trial by jury in any action, Proceeding or counterclaim based on, or arising
out of, under or in connection with this Agreement, any other Transaction Document, or any matter arising hereunder or thereunder.


 


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Left Blank]


 




	708317988
    14443670	 -10-	Purchase
    Agreement (USAA 2014-1)






    	 



    	



    

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the day and year first written above.


 


 





	 	USAA FEDERAL SAVINGS BANK	 
	 	 	 	 	 
	 	By:	 	 
	 	Name:	John D. Harrell	 
	 	Title:	Vice President	 
	 	 	 	 
	 	USAA ACCEPTANCE, LLC	 
	 	 	 
	 	By:	 	 
	 	Name: 	David K. Kimball	 
	 	Title:	Vice President and Treasurer	 


 




	708317988
    14443670	S-1	Purchase
    Agreement (USAA 2014-1)






    	 



    	



    
EXHIBIT A


 


FORM OF

ASSIGNMENT PURSUANT TO PURCHASE AGREEMENT


 


February [      ], 2014


 


For value received, in accordance with
the Purchase Agreement dated as of February 28, 2014 (the “Agreement”), between USAA Federal Savings Bank,
a federally chartered savings association (the “Bank”), and USAA Acceptance, LLC, a Delaware limited liability
company (the “Purchaser”), on the terms and subject to the conditions set forth in the Agreement, the Bank
does hereby transfer, assign, set over, sell and otherwise convey to the Purchaser without recourse (subject to the obligations
in the Agreement) on the Closing Date, all of its right, title and interest in, to and under the Receivables set forth on the
schedule of Receivables delivered by the Bank to the Purchaser on the date hereof, the Collections after the Cut-Off Date, the
Receivable Files and the Related Security relating thereto, which sale shall be effective as of the Cut-Off Date.


 


The foregoing sale does not constitute
and is not intended to result in any assumption by the Purchaser of any obligation of the undersigned or the Originator to the
Obligors or any other Person in connection with the Receivables, or the other assets and properties conveyed hereunder or any
agreement, document or instrument related thereto.


 


This assignment is made pursuant to and
upon the representations, warranties and agreements on the part of the undersigned contained in the Agreement and is governed
by the Agreement.


 


Capitalized terms used herein and not otherwise
defined shall have the meaning assigned to them in the Agreement or if not defined in the Agreement, in Appendix A to the Sale
and Servicing Agreement, dated as of February 28, 2014, among USAA Auto Owner Trust 2014-1, the Bank, as servicer, the Purchaser,
as seller, and U.S. Bank National Association, as indenture trustee.


 


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	708317988 14443670	Exhibit A-1	Purchase Agreement (USAA 2014-1)









    	 



    	



    

IN WITNESS HEREOF, the undersigned has
caused this assignment to be duly executed as of the date first above written.


 


	 	USAA FEDERAL SAVINGS BANK
	 	 
	 	By:	 
	 	Name:
	 	Title:



 


	708317988 14443670	Exhibit A-2	Purchase Agreement (USAA 2014-1)




    	 



    	



    

SCHEDULE I


 


REPRESENTATIONS AND WARRANTIES WITH
RESPECT TO THE RECEIVABLES


 


		(a)	Characteristics of Receivables. Each Receivable:



 


	 	(i)	has been fully and properly executed or electronically
                                                                     authenticated (as defined in the UCC) by the Obligor thereto;
	 	 	 
	 	(ii)	has been originated or acquired directly by the Originator
                                                                      in accordance with its customary practices;
	 	 	 
	 	(iii)	as of the Closing Date is secured by a first priority
                                                                       validly perfected security interest in the Financed Vehicle
                                                                       in favor of the Originator, as secured party, or all necessary
                                                                       actions have been commenced that would result in a first
                                                                       priority security interest in the Financed Vehicle in favor
                                                                       of the Originator, as secured party, which security interest,
                                                                       in either case, is assignable and has been so assigned
                                                                       (x) by the Bank to the Purchaser and (y) by the Purchaser
                                                                       to the Issuer; 
	 	 	 
	 	(iv)	contains customary and enforceable provisions such that
                                                                      the rights and remedies of the holder thereof are adequate
                                                                      for realization against the collateral of the benefits of
                                                                      the security;
	 	 	 
	 	(v)	provided, at origination, for level periodic payments
                                                                     which fully amortize the initial Outstanding Principal Balance
                                                                     over the original term; provided, that the amount
                                                                     of the first or last payment may be different but in no event
                                                                     more than three times the level monthly payment;
	 	 	 
	 	(vi)	provides for interest at the Contract Rate specified
                                                                      in the Schedule of Receivables; and
	 	 	 
	 	(vii)	was originated in the United States.



 


		(b)	Individual Characteristics. Each Receivable has the following
                                                           individual characteristics as of the Cut-Off Date:



 


	 	(i)	each Receivable is secured by a new or used automobile
                                                                     or light-duty truck;
	 	 	 
	 	(ii)	each Receivable has a Contract Rate of no less than
                                                                      2.00% and not more than 17.49%;
	 	 	 
	 	(iii)	each Receivable had an original term to maturity of not more than 72 months and not less than 12 months and each Receivable has a remaining term to maturity, as of the Cut-Off Date, of 2 months or more;
	 	 	 
	 	(iv)	each Receivable has an Outstanding Principal Balance
                                                                      as of the Cut-Off Date of greater than or equal to $804.03;



 



	708317988 14443670	Schedule I-1	Purchase Agreement (USAA 2014-1)





    	 



    	



    

	 	(v)	no Receivable has a scheduled maturity date later than
                                                                     January 22, 2020;
	 	 	 
	 	(vi)	no Receivable was more than 30 days past due as of the
                                                                      Cut-Off Date; 
	 	 	 
	 	(vii)	as of the Cut-Off Date, no Receivable was noted in
                                                                       the records of the Servicer as being the subject of any
                                                                       pending bankruptcy or insolvency Proceeding;
	 	 	 
	 	(viii)	no Receivable is subject to a force-placed Insurance
                                                                        Policy on the related Financed Vehicle; 
	 	 	 
	 	(ix)	each Receivable is a Simple Interest Receivable; and
	 	 	 
		(x)	each of the Receivables were selected using selection procedures
                                                               that were not known or intended by the Bank to be adverse to the
                                                               Purchaser. 



 


	(c)	Schedule of Receivables. The information with respect to each Receivable transferred
                                 on the Closing Date set forth in the Schedule of Receivables was true and correct in all material
                                 respects as of the Cut-Off Date.
	 	 
	(d)	Compliance with Law.  Each Receivable complied at the time it was originated or made,
                                 in all material respects with all requirements of applicable federal, state and local laws, and
                                 regulations thereunder, including, to the extent applicable, usury laws, the Federal Truth in
                                 Lending Act, the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Federal Trade
                                 Commission Act, the Fair Debt Collection Practices Act, the Fair Credit Billing Act, the Magnuson-Moss
                                 Warranty Act, the Consumer Financial Protection Bureau’s Regulations B and Z, the Servicemembers
                                 Civil Relief Act of 2003, as amended, state adaptations of the National Consumer Act and of the
                                 Uniform Consumer Credit Code and any other consumer credit, equal opportunity and disclosure
                                 laws applicable to that Receivable.
	 	 
	(e)	Binding Obligation. Each Receivable constitutes the legal, valid and binding payment
                                 obligation in writing of the Obligor, enforceable in all material respects by the holder thereof
                                 in accordance with its terms, subject, as to enforcement, to applicable bankruptcy, insolvency,
                                 reorganization, liquidation or other similar laws and equitable principles relating to or affecting
                                 the enforcement of creditors’ rights generally.
	 	 
	(f)	Receivable in Force. Each Receivable has not been satisfied, subordinated or rescinded
                                 nor has the related Financed Vehicle been released from the lien granted by the Receivable in
                                 whole or in part.
	 	 
	(g)	No Waiver. As of the Cut-Off Date, no provision of a Receivable has been waived.
	 	 
	(h)	No Default. Except for payment delinquencies continuing for a period of not more than
                                 30 days as of the Cut-Off Date, the records of the Servicer did not disclose that any default,
                                 breach, violation or event permitting acceleration under the terms of the Receivable existed
                                 as of the Cut-Off Date or that any continuing condition that with notice or lapse of time, or
                                 both, would constitute a default, breach, violation or event



 


	708317988 14443670	Schedule I-2	Purchase Agreement (USAA 2014-1)




    	 



    	



    

		permitting acceleration under the terms of the
                                                 Receivable had arisen as of the Cut-Off Date.



 


	(i)	Insurance. Each Receivable requires the Obligor thereunder to insure the Financed
                                 Vehicle under a physical damage insurance policy.
	 	 
	(j)	No Government Obligor.  The Obligor on each Receivable is not the United States of
                                 America or any state thereof or any local government, or any agency, department, political subdivision
                                 or instrumentality of the United States of America or any state thereof or any local government.
	 	 
	(k)	Assignment.  No Receivable has been originated in, or is subject to the laws of, any
                                 jurisdiction under which the sale, transfer, assignment, conveyance or pledge of such Receivable
                                 would be unlawful, void, or voidable. The Bank has not entered into any agreement with any Obligor
                                 that prohibits, restricts or conditions the assignment of the related Receivable.
	 	 
	(l)	Good Title.  It is the intention of the Bank that the sale, contribution, transfer,
                                 assignment and conveyance herein contemplated constitute an absolute sale, contribution, transfer,
                                 assignment and conveyance of the Receivables and that the Receivables not be part of the Bank’s
                                 estate in the event of the filing of a bankruptcy petition by or against the Bank under any bankruptcy
                                 law. No Receivable has been sold, transferred, assigned, conveyed or pledged to any Person other
                                 than pursuant to the Transaction Documents. As of the Closing Date, and immediately prior to
                                 the sale and transfer herein contemplated, the Bank had good and marketable title to each Receivable
                                 free and clear of all Liens (except any Lien which will be released simultaneously with or prior
                                 to the sale and transfer of such Receivable to the Purchaser), and, immediately upon the sale
                                 and transfer thereof, the Purchaser will have good and marketable title to each Receivable, free
                                 and clear of all Liens (other than Permitted Liens).
	 	 
	(m)	Filings. All filings (including, without limitation, UCC filings) necessary in any
                                 jurisdiction to give the Issuer a first priority, validly perfected ownership interest in the
                                 Receivables (other than the Related Security with respect thereto), and to give the Indenture
                                 Trustee a first priority perfected security interest therein, will be made within ten days of
                                 the Closing Date.
	 	 
	(n)	Priority. The Receivable is not pledged, assigned, sold, subject to a security interest,
                                 or otherwise conveyed other than pursuant to the Transaction Documents. The Bank has not authorized
                                 the filing of and is not aware of any financing statements against the Bank or the Purchaser
                                 that include a description of collateral covering the Receivables other than any financing statement
                                 relating to security interests granted under the Transaction Documents or that have been terminated.
                                 The Purchase Agreement creates a valid and continuing security interest in the Receivable (other
                                 than the Related Security with respect thereto) in favor of the Purchaser which security interest
                                 is prior to all other Liens (other than Permitted Liens) and is enforceable as such against all
                                 other creditors of and purchasers and assignees from the Purchaser.



 


	708317988 14443670	Schedule I-3	Purchase Agreement (USAA 2014-1)




    	 



    	



    

	(o)	Characterization of Receivables. Each Receivable constitutes either “tangible
                                 chattel paper,” “electronic chattel paper,” an “account,” a “promissory
                                 note” or a “payment intangible,” each as defined in the UCC.
	 	 
	(p)	One Original.  With respect to any Receivable constituting electronic chattel paper, there is only one
            “authoritative copy” (as such term is used in Section 9-105 of the UCC) of the Receivable or with respect
            to any Receivable constituting tangible chattel paper for which an original executed copy exists, there is no more
            than one original executed copy of such Receivable and none of the instruments, tangible chattel paper or electronic
            chattel paper that constitute or evidence the Receivables has any marks or notations indicating that it has been pledged,
            assigned or otherwise conveyed to any Person other than to a party to the Transaction Documents.
	 	 
	(q)	No Defenses. The Bank has no knowledge either of any facts which would give rise to any right of rescission,
            set-off, counterclaim or defense, or of the same being asserted or threatened, with respect to any Receivable.
	 	 
	(r)	No Repossession. As of the Cut-Off Date, no Financed Vehicle shall have been repossessed.



 


	708317988 14443670	Schedule I-4	Purchase Agreement (USAA 2014-1)




    	 



    	



    

SCHEDULE
II


 


PERFECTION REPRESENTATIONS, WARRANTIES
AND COVENANTS


 


In addition to the representations, warranties
and covenants contained in the Agreement, the Bank hereby represents, warrants and covenants to the Purchaser as follows on the
Closing Date:


 


General


 


1. This Agreement creates a valid and continuing
security interest (as defined in the applicable UCC) in the Receivables and the other Purchased Assets in favor of the Purchaser,
which security interest is prior to all other Liens, and is enforceable as such against creditors of and purchasers from the Bank.



  


2. The Receivables constitute “chattel
paper” (including “electronic chattel paper” and “tangible chattel paper”), “accounts,”
“instruments” or “general intangibles,” within the meaning of the applicable UCC. 


  


3. Each Receivable is secured by a first
priority validly perfected security interest in the related Financed Vehicle in favor of the Originator, as secured party, or
all necessary actions with respect to such Receivable have been taken or will be taken to perfect a first priority security interest
in the related Financed Vehicle in favor of the Originator, as secured party.


  


Creation


 


4. Immediately prior to the sale, transfer,
assignment and conveyance of a Receivable by the Bank to the Purchaser, the Bank owned and had good and marketable title to such
Receivable free and clear of any Lien and immediately after the sale, transfer, assignment and conveyance of such Receivable to
the Purchaser, the Purchaser will have good and marketable title to such Receivable free and clear of any Lien. 


  


5. The related Originator has received
all consents and approvals to the sale of the Receivables hereunder to the Purchaser required by the terms of the Receivables
that constitute instruments.


  


Perfection


 


6. The Bank has caused or will have caused,
within ten days after the effective date of this Agreement, the filing of all appropriate financing statements in the proper filing
office in the appropriate jurisdictions under applicable law in order to perfect the security interest in the Receivables granted
to the Purchaser hereunder; and the Servicer, in its capacity as custodian, has in its possession the original copies of such
instruments or tangible chattel paper that constitute or evidence the Receivables, and all financing statements referred to in
this paragraph contain a statement that: “A purchase of or security interest in any collateral described in this financing
statement will violate the rights of the Secured Party/Purchaser.”


 



	708317988 14443670	Schedule II-1	Purchase Agreement (USAA 2014-1)









    	 



    	



    

7. With respect to Receivables that constitute
instruments or tangible chattel paper, either: 


  


		a.	All original executed copies of each such instrument or tangible
                                                            chattel paper have been delivered to the Indenture Trustee; or
	 	 	 
	 	b.	Such instruments or tangible chattel paper are in the possession
                                                                  of the Servicer and the Indenture Trustee has received a written
                                                                  acknowledgment from the Servicer that the Servicer (in its capacity
                                                                  as custodian) is holding such instruments or tangible chattel
                                                                  paper solely on behalf and for the benefit of the Indenture
                                                                  Trustee; or 
	 	 	 
	 	c.	The Servicer received possession of such instruments or
                                                                  tangible chattel paper after the Indenture Trustee received
                                                                  a written acknowledgment from the Servicer that the Servicer
                                                                  is acting solely as agent of the Indenture Trustee.



 


Priority


 


8. The Bank has not authorized the filing
of, and is not aware of, any financing statements against the Bank that include a description of collateral covering the Receivables
other than any financing statement (i) relating to the conveyance of the Receivables by the Bank to the Purchaser under the Purchase
Agreement, (ii) relating to the conveyance of the Receivables by the Seller to the Issuer under the Sale and Servicing Agreement,
(iii) relating to the security interest granted to the Indenture Trustee under the Indenture or (iv) that has been terminated.


  


9. The Bank is not aware of any material
judgment, ERISA or tax lien filings against the Bank. 


  


10. Neither the Bank nor a custodian or
vaulting agent thereof holding any Receivable that is electronic chattel paper has communicated an “authoritative copy”
(as such term is used in Section 9-105 of the UCC) of any loan agreement that constitutes or evidences such Receivable to any
Person other than the Servicer.


  


11. None of the instruments, tangible chattel
paper or electronic chattel paper that constitute or evidence the Receivables has any marks or notations indicating that they
have been pledged, assigned or otherwise conveyed to any Person other than the Purchaser, the Issuer or the Indenture Trustee.


  


Survival of Perfection
Representations


 


12. Notwithstanding any other provision
of the Purchase Agreement or any other Transaction Document, the perfection representations, warranties and covenants contained
in this Schedule II shall be continuing, and remain in full force and effect until such time as all obligations under
the Transaction Documents and the Notes have been finally and fully paid and performed.


 




	708317988 14443670	Schedule II-2	Purchase Agreement (USAA 2014-1)








    	 



    	



    

No Waiver


 


13. The Bank shall provide the Rating Agencies
with prompt written notice of any material breach of the perfection representations, warranties and covenants contained in this
Schedule II, and shall not, without satisfying the Rating Agency Condition, waive a breach of any of such perfection
representations, warranties or covenants.


 




	708317988 14443670	Schedule II-3	Purchase Agreement (USAA 2014-1)