exv4w1






Exhibit 4.1




 

 






INDENTURE




between



FORD CREDIT AUTO OWNER TRUST 2011-B,

as Issuer



and



THE BANK OF NEW YORK MELLON,

as Indenture Trustee



Dated as of July 1, 2011



 

 








 









 
















TABLE OF CONTENTS




	 	 	 	 	 	 	 

	ARTICLE I USAGE AND DEFINITIONS	 	 	1	 
	Section 1.1.

	 	Usage and Definitions
	 	 	1	 
	Section 1.2.

	 	Incorporation by Reference of Trust Indenture Act
	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE II THE NOTES	 	 	2	 
	Section 2.1.

	 	Form
	 	 	2	 
	Section 2.2.

	 	Execution, Authentication and Delivery
	 	 	2	 
	Section 2.3.

	 	Tax Treatment
	 	 	3	 
	Section 2.4.

	 	Registration; Registration of Transfer and Exchange
	 	 	3	 
	Section 2.5.

	 	Mutilated, Destroyed, Lost or Stolen Notes
	 	 	6	 
	Section 2.6.

	 	Persons Deemed Owners
	 	 	7	 
	Section 2.7.

	 	Payment of Principal and Interest
	 	 	7	 
	Section 2.8.

	 	Cancellation
	 	 	8	 
	Section 2.9.

	 	Release of Collateral
	 	 	8	 
	Section 2.10.

	 	Book-Entry Notes
	 	 	8	 
	Section 2.11.

	 	Definitive Notes
	 	 	9	 
	Section 2.12.

	 	Authenticating Agents
	 	 	10	 
	Section 2.13.

	 	Note Paying Agents
	 	 	10	 
	 
	 	 	 	 	 	 
	ARTICLE III COVENANTS AND REPRESENTATIONS	 	 	11	 
	Section 3.1.

	 	Payment of Principal and Interest
	 	 	11	 
	Section 3.2.

	 	Maintenance of Office or Agency
	 	 	11	 
	Section 3.3.

	 	Money for Payments to be Held in Trust
	 	 	11	 
	Section 3.4.

	 	Existence
	 	 	12	 
	Section 3.5.

	 	Protection of Collateral
	 	 	13	 
	Section 3.6.

	 	Performance of Obligations; Servicing of Receivables
	 	 	13	 
	Section 3.7.

	 	Negative Covenants
	 	 	14	 
	Section 3.8.

	 	Opinions as to Collateral
	 	 	14	 
	Section 3.9.

	 	Annual Statement as to Compliance
	 	 	15	 
	Section 3.10.

	 	Consolidation and Merger; Sale of Assets
	 	 	15	 
	Section 3.11.

	 	Successor or Transferee
	 	 	16	 
	Section 3.12.

	 	No Other Activities
	 	 	17	 
	Section 3.13.

	 	Further Instruments and Acts
	 	 	17	 
	Section 3.14.

	 	Restricted Payments
	 	 	17	 
	Section 3.15.

	 	Notice of Events of Default
	 	 	17	 
	Section 3.16.

	 	Representations and Warranties of the Issuer as to Security Interest
	 	 	17	 
	Section 3.17.

	 	Audits of the Issuer
	 	 	18	 
	Section 3.18.

	 	Representations and Warranties of the Issuer
	 	 	19	 
	 
	 	 	 	 	 	 
	ARTICLE IV SATISFACTION AND DISCHARGE	 	 	19	 
	Section 4.1.

	 	Satisfaction and Discharge of Indenture
	 	 	19	 
	 
	 	 	 	 	 	 
	ARTICLE V REMEDIES	 	 	20	 
	Section 5.1.

	 	Events of Default
	 	 	20	 
	Section 5.2.

	 	Acceleration of Maturity; Rescission and Annulment
	 	 	21	 
	Section 5.3.

	 	Collection of Indebtedness by the Indenture Trustee
	 	 	22	 
	Section 5.4.

	 	Trustee May File Proofs of Claim
	 	 	22	 






 









 






	 	 	 	 	 	 	 

	Section 5.5.

	 	Trustee May Enforce Claims Without Possession of Notes
	 	 	23	 
	Section 5.6.

	 	Remedies; Priorities
	 	 	23	 
	Section 5.7.

	 	Optional Preservation of the Collateral
	 	 	25	 
	Section 5.8.

	 	Limitation on Suits
	 	 	25	 
	Section 5.9.

	 	Unconditional Rights of Noteholders to Receive Principal and Interest
	 	 	26	 
	Section 5.10.

	 	Restoration of Rights and Remedies
	 	 	26	 
	Section 5.11.

	 	Rights and Remedies Cumulative
	 	 	26	 
	Section 5.12.

	 	Delay or Omission Not a Waiver
	 	 	26	 
	Section 5.13.

	 	Control by Noteholders
	 	 	26	 
	Section 5.14.

	 	Waiver of Defaults and Events of Default
	 	 	27	 
	Section 5.15.

	 	Undertaking for Costs
	 	 	27	 
	Section 5.16.

	 	Waiver of Stay or Extension Laws
	 	 	28	 
	Section 5.17.

	 	Performance and Enforcement of Certain Obligations
	 	 	28	 
	 
	 	 	 	 	 	 
	ARTICLE VI THE INDENTURE TRUSTEE	 	 	28	 
	Section 6.1.

	 	Duties of Indenture Trustee
	 	 	28	 
	Section 6.2.

	 	Rights of Indenture Trustee
	 	 	29	 
	Section 6.3.

	 	Individual Rights of Indenture Trustee
	 	 	30	 
	Section 6.4.

	 	Indenture Trustee’s Disclaimer
	 	 	31	 
	Section 6.5.

	 	Notice of Defaults
	 	 	31	 
	Section 6.6.

	 	Reports by Indenture Trustee
	 	 	31	 
	Section 6.7.

	 	Compensation and Indemnity
	 	 	33	 
	Section 6.8.

	 	Replacement of Indenture Trustee
	 	 	34	 
	Section 6.9.

	 	Successor Indenture Trustee by Merger
	 	 	35	 
	Section 6.10.

	 	Appointment of Separate Indenture Trustee or Co-Indenture Trustee
	 	 	35	 
	Section 6.11.

	 	Eligibility; Disqualification
	 	 	36	 
	Section 6.12.

	 	Preferential Collection of Claims Against Issuer
	 	 	37	 
	Section 6.13.

	 	Audits of the Indenture Trustee
	 	 	37	 
	Section 6.14.

	 	Representations and Warranties of the Indenture Trustee
	 	 	38	 
	Section 6.15.

	 	Duty to Update Disclosure
	 	 	39	 
	Section 6.16.

	 	Covenants for Reporting of Repurchase Demands due to Breaches of Representations and Warranties
	 	 	39	 
	 
	 	 	 	 	 	 
	ARTICLE VII NOTEHOLDERS’ LISTS AND REPORTS	 	 	40	 
	Section 7.1.

	 	Names and Addresses of Noteholders
	 	 	40	 
	Section 7.2.

	 	Preservation of Information; Communications to Noteholders
	 	 	40	 
	Section 7.3.

	 	Reports by Issuer
	 	 	40	 
	Section 7.4.

	 	Reports by Indenture Trustee
	 	 	41	 
	 
	 	 	 	 	 	 
	ARTICLE VIII ACCOUNTS, DISBURSEMENTS AND RELEASES	 	 	41	 
	Section 8.1.

	 	Collection of Money
	 	 	41	 
	Section 8.2.

	 	Trust Accounts; Distributions and Disbursements
	 	 	41	 
	Section 8.3.

	 	General Provisions Regarding Bank Accounts
	 	 	44	 
	Section 8.4.

	 	Release of Collateral
	 	 	45	 
	 
	 	 	 	 	 	 
	ARTICLE IX SUPPLEMENTAL INDENTURES	 	 	46	 
	Section 9.1.

	 	Supplemental Indentures Without Consent of Noteholders
	 	 	46	 






ii









 






	 	 	 	 	 	 	 

	Section 9.2.

	 	Supplemental Indentures with Consent of Noteholders
	 	 	47	 
	Section 9.3.

	 	Execution of Supplemental Indentures
	 	 	48	 
	Section 9.4.

	 	Effect of Supplemental Indenture
	 	 	49	 
	Section 9.5.

	 	Conformity with Trust Indenture Act
	 	 	49	 
	Section 9.6.

	 	Reference in Notes to Supplemental Indentures
	 	 	49	 
	 
	 	 	 	 	 	 
	ARTICLE X REDEMPTION OF NOTES	 	 	49	 
	Section 10.1.

	 	Redemption
	 	 	49	 
	 
	 	 	 	 	 	 
	ARTICLE XI MISCELLANEOUS	 	 	50	 
	Section 11.1.

	 	Compliance Certificates and Opinions, etc.
	 	 	50	 
	Section 11.2.

	 	Form of Documents Delivered to Indenture Trustee
	 	 	52	 
	Section 11.3.

	 	Acts of Noteholders
	 	 	52	 
	Section 11.4.

	 	Notices, etc., to Indenture Trustee, Issuer and Rating Agencies
	 	 	53	 
	Section 11.5.

	 	Notices to Noteholders; Waiver
	 	 	53	 
	Section 11.6.

	 	Conflict with Trust Indenture Act
	 	 	54	 
	Section 11.7.

	 	Benefits of Indenture
	 	 	54	 
	Section 11.8.

	 	GOVERNING LAW
	 	 	54	 
	Section 11.9.

	 	Submission to Jurisdiction
	 	 	54	 
	Section 11.10.

	 	WAIVER OF JURY TRIAL
	 	 	54	 
	Section 11.11.

	 	Severability
	 	 	55	 
	Section 11.12.

	 	Counterparts
	 	 	55	 
	Section 11.13.

	 	Headings
	 	 	55	 
	Section 11.14.

	 	Issuer Obligation
	 	 	55	 
	Section 11.15.

	 	Subordination of Claims against the Depositor
	 	 	55	 
	Section 11.16.

	 	No Petition
	 	 	56	 






	 	 	 	 	 

	Exhibit A

	 	Form of Class A Note
	 	A-1
	Exhibit B

	 	Form of Class B / C / D Note
	 	B-1
	Schedule A

	 	Schedule of Receivables
	 	SA-1






iii









 






CROSS REFERENCE TABLE1




	 	 	 	 	 
	TIA	 	Indenture
	Section	 	Section
	 
	 	 	 	 
	310 (a)

	 	 	6.11; 6.14	 
	(b)

	 	 	6.11	 
	(c)

	 	 	N.A.	 
	311 (a)

	 	 	6.12	 
	(b)

	 	 	6.12	 
	(c)

	 	 	6.12	 
	312 (a)

	 	 	N.A.	 
	(b)

	 	 	7.2	 
	(c)

	 	 	7.2	 
	313 (a)

	 	 	7.4	 
	(b)

	 	 	7.4	 
	(c)

	 	 	6.5, 7.3, 7.4	 
	(d)

	 	 	N.A.	 
	314 (a)

	 	 	N.A.	 
	(b)

	 	 	N.A.	 
	(c)

	 	 	8.4, 11.1	 
	(d)

	 	 	8.4, 11.1	 
	(e)

	 	 	N.A.	 
	315 (a)

	 	 	N.A.	 
	(b)

	 	 	N.A.	 
	(c)

	 	 	N.A.	 
	(d)

	 	 	N.A.	 
	(e)

	 	 	N.A.	 
	316 (a)(1)(A)

	 	 	N.A.	 
	(a) (1)(B)

	 	 	N.A.	 
	(a)(2)

	 	 	N.A.	 
	(b)

	 	 	N.A.	 
	(c)

	 	 	N.A.	 
	317

	 	 	11.6	 
	318 (a)

	 	 	N.A.	 








 




			
	1	 	Note: This Cross Reference Table is not deemed, for any purpose, to be part of this
Indenture.
	 
	2	 	N.A. means Not Applicable.




iv









 










     INDENTURE, dated as of July 1, 2011 (this “Indenture”), between FORD CREDIT AUTO OWNER
TRUST 2011-B, a Delaware statutory trust, as Issuer, and THE BANK OF NEW YORK MELLON, a New York
banking corporation, as Indenture Trustee for the benefit of the Secured Parties.



     Each party agrees as follows for the benefit of the other party and for the equal and ratable
benefit of the Secured Parties.



GRANTING CLAUSE




     The Issuer Grants to the Indenture Trustee at the Closing Date, as Indenture Trustee for the
benefit of the Secured Parties, all of the Issuer’s right, title and interest in, to and under,
whether now owned or hereafter acquired, the Collateral.



     The foregoing Grant is made in trust to secure (a) the payment of principal of, interest on
and any other amounts owing in respect of the Notes as provided in this Indenture and (b)
compliance by the Issuer with the provisions of this Indenture for the benefit of the Secured
Parties.



     The Indenture Trustee acknowledges such Grant, accepts the trusts under this Indenture in
accordance with this Indenture and agrees to perform the duties required in this Indenture so that
the interests of the Secured Parties may be adequately and effectively protected.



ARTICLE I

USAGE AND DEFINITIONS




     Section 1.1. Usage and Definitions. Capitalized terms used but not otherwise defined
in this Indenture are defined in Appendix A to the Sale and Servicing Agreement, dated as of July
1, 2011, among Ford Credit Auto Owner Trust 2011-B, as Issuer, Ford Credit Auto Receivables Two
LLC, as Depositor, and Ford Motor Credit Company LLC, as Servicer. Appendix A also contains rules
as to usage applicable to this Indenture. Appendix A is incorporated by reference into this
Indenture.



     Section 1.2. Incorporation by Reference of Trust Indenture Act. Whenever this
Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made
a part of this Indenture. The following TIA terms used in this Indenture have the following
meanings:



     “indenture securities” means the Notes;



     “indenture security holder” means a Noteholder;



     “indenture to be qualified” means this Indenture;



     “indenture trustee” or “institutional trustee” means the Indenture Trustee;
and



     “obligor” on the indenture securities means the Issuer and any other obligor on the
indenture securities.



 









 





     All other TIA terms used in this Indenture that are defined in the TIA, defined by TIA
reference to another statute or defined by Securities and Exchange Commission rule have the meaning
assigned to them by such definitions.



ARTICLE II

THE NOTES




     Section 2.1. Form.



     (a) Each Class of Notes, together with the Indenture Trustee’s certificates of authentication,
will be in substantially the form set forth in the related Exhibit with such variations as are
required or permitted by this Indenture. The Notes may have such marks of identification and such
legends or endorsements placed on them as may be determined, consistent with this Indenture, by the
Responsible Person of the Issuer executing such Notes, as evidenced by their execution of such
Notes. The physical Notes will be produced by any method as determined by the Responsible Person
of the Issuer executing such Notes, as evidenced by their execution of such Notes.



     (b) Each Note will be dated the date of its authentication. The terms of the Notes set forth
in Exhibit A and Exhibit B are part of this Indenture and are incorporated into this Indenture by
reference.



     Section 2.2. Execution, Authentication and Delivery.



     (a) A Responsible Person of the Issuer will execute the Notes on behalf of the Issuer. The
signature of such Responsible Person on the Notes may be manual or facsimile. Notes bearing the
manual or facsimile signature of an individual who was a Responsible Person of the Issuer will bind
the Issuer, notwithstanding that such individual has ceased to hold such office before the
authentication and delivery of such Notes or did not hold such office at the date of issuance of
such Notes.



     (b) The Indenture Trustee will, upon Issuer Order, authenticate and deliver the Notes for
original issue in the Classes, Note Interest Rates and initial Note Balances as set forth below.



	 	 	 	 	 	 	 	 	 
	Class	 	Note Interest Rate	 	Initial Note Balance
	Class A-1 Notes
	 	 	0.21892	%	 	$	303,700,000	 
	Class A-2 Notes
	 	 	0.68	%	 	$	347,800,000	 
	Class A-3 Notes
	 	 	0.84	%	 	$	391,800,000	 
	Class A-4 Notes
	 	 	1.35	%	 	$	256,420,000	 
	Class B Notes
	 	 	2.27	%	 	$	41,040,000	 
	Class C Notes
	 	 	2.54	%	 	$	27,360,000	 
	Class D Notes
	 	 	3.13	%	 	$	27,360,000	 






     (c) The Notes will initially be issued as Book-Entry Notes. The Notes will be issuable in
minimum denominations of $100,000 and in multiples of $1,000 in excess thereof. Notwithstanding
the foregoing, one Note of each Class may fail to be in such minimum denominations due to the
difference between such minimum denomination requirement and the initial Note Balance of the Notes.



2









 





     (d) No Note will be entitled to any benefit under this Indenture or be valid for any purpose,
unless it bears a certificate of authentication substantially in the form provided for in this
Indenture executed by the Indenture Trustee by the manual signature of one of its authorized
signatories, and such certificate upon any Note will be conclusive evidence, and the only evidence,
that such Note has been duly authenticated and delivered under this Indenture.



     Section 2.3. Tax Treatment. The Issuer intends that Notes that are owned or
beneficially owned by a Person other than Ford Credit or its Affiliates will be indebtedness of the
Issuer, secured by the Collateral, for U.S. federal, State and local income and franchise tax
purposes. The Issuer, by entering into this Indenture, and each Noteholder, by its acceptance of a
Note (and each Note Owner by its acceptance of an interest in the applicable Book-Entry Note),
agree to treat the Notes for U.S. federal, State and local income and franchise tax purposes as
indebtedness of the Issuer.



     Section 2.4. Registration; Registration of Transfer and Exchange.



     (a) The Issuer appoints the Indenture Trustee to be the “Note Registrar” and to keep a
register (the “Note Register”) for the purpose of registering Notes and transfers of Notes
as provided in this Indenture. Upon any resignation of the Note Registrar, the Issuer will
promptly appoint a successor or, if it elects not to make such an appointment, assume the duties of
Note Registrar. If the Issuer appoints a Person other than the Indenture Trustee as Note
Registrar, (i) the Issuer will notify the Indenture Trustee of such appointment, (ii) the Indenture
Trustee will have the right to inspect the Note Register at all reasonable times and to obtain
copies of the Note Register and (iii) the Indenture Trustee will have the right to rely upon a
certificate executed by an officer of the Note Registrar as to the names and addresses of the
Noteholders and the principal amounts and number of the Notes.



     (b) Upon surrender for registration of transfer of any Note at the office or agency of the
Issuer maintained under Section 3.2, if the requirements of Section 8-401(a) of the UCC are met,
the Issuer will execute, the Indenture Trustee will authenticate and the Noteholder will obtain
from the Indenture Trustee, in the name of the designated transferee or transferees, one or more
new Notes of the same Class, in any authorized denomination, in the same aggregate principal
amount.



     (c) A Noteholder may exchange Notes for other Notes of the same Class, in any authorized
denominations, in the same aggregate principal amount, by surrendering the Notes to be exchanged at
the office or agency of the Issuer maintained under Section 3.2. If the requirements of Section
8-401(a) of the UCC are met, the Issuer will execute, the Indenture Trustee will authenticate and
the Noteholder will obtain from the Indenture Trustee the Notes that the Noteholder making such
exchange is entitled to receive.



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



     (e) Every Note presented or surrendered for registration of transfer or exchange will be (i)
duly endorsed by, or be accompanied by a written instrument of transfer in form



3









 




satisfactory to the Note Registrar or the Indenture Trustee duly executed by, the Noteholder
of such Note or such Noteholder’s attorney duly authorized in writing, with such signature
guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar
which requirements include membership or participation in the Securities Transfer Agents Medallion
Program or such other “signature guarantee program” as may be determined by the Note Registrar in
addition to, or in substitution for, the Securities Transfer Agents Medallion Program, all in
accordance with the Exchange Act, and (ii) accompanied by such other documents as the Indenture
Trustee may require.




     (f) None of the Issuer, the Note Registrar or the Indenture Trustee will impose a service
charge on a Noteholder for any registration of transfer or exchange of Notes. The Issuer, the Note
Registrar or the Indenture Trustee may require such Noteholder to pay an amount sufficient to cover
any tax or other governmental charge that may be imposed in connection with such registration of
transfer or exchange of the Notes.



     (g) Neither the Issuer nor the Note Registrar will be required to register transfers or
exchanges of Notes selected for redemption or Notes whose next Payment Date is not more than
fifteen days after the requested date of such transfer or exchange.



     (h) None of the Class A-1 Notes or the Class D Notes have been registered under the Securities
Act or any State securities law. None of the Issuer, the Note Registrar or the Indenture Trustee
is obligated to register the Class A-1 Notes or the Class D Notes under the Securities Act or any
other securities or “blue sky” laws or to take any other action not otherwise required under this
Indenture or the Trust Agreement to permit the transfer of any Class A-1 Note or Class D Note
without registration. The Issuer, at the direction of the Depositor or the Administrator, may
elect to register, or cause the registration of, the Class A-1 Notes or the Class D Notes under the
Securities Act and any applicable State securities law, in which case the Issuer will deliver, or
cause to be delivered, to the Indenture Trustee and the Registrar such Opinions of Counsel,
Officer’s Certificates and other information as determined by the Depositor as necessary to effect
such registration.



     (i) Until
such time as any such Class of Notes has been registered under the Securities Act
and any applicable State securities law pursuant to Section 2.4(h), no Class A-1 Note or Class D
Note may be sold, transferred, assigned, participated, pledged, or otherwise disposed of (any such
act, a “Class A-1 Note Transfer” or a “Class D Note Transfer,” respectively) to
any Person except in accordance with the provisions of this
Section 2.4, and any purported Class
A-1 Note Transfer or Class D Note Transfer in violation of this Section 2.4 will be null and void
(each a “Void Class A-1 Note Transfer” or a “Void Class D Note Transfer,”
respectively).



     (j) Each Class A-1 Note will bear a legend to the effect of the legend contained in Exhibit A
unless determined otherwise by the Administrator (as certified to the Indenture Trustee in an
Officer’s Certificate) consistent with applicable law.



     As a condition to the registration of any Class A-1 Note Transfer, the prospective transferee
of such Class A-1 Note will be deemed to represent to the Indenture Trustee, the Note Registrar and
the Issuer the following:



4









 






     (i) It understands that the Class A-1 Notes have not been and will not be registered
under the Securities Act or any state or other applicable securities or “blue sky” law.




     (ii) It understands that Class A-1 Note Transfers are only permitted if made in
compliance with the Securities Act and other applicable laws and only to a person that the
holder reasonably believes is a “qualified institutional buyer” within the meaning of Rule
144A under the Securities Act (a “QIB”).




     (iii) It (A) is a QIB, (B) is aware that the sale to it is being made in reliance on
Rule 144A under the Securities Act and if it is acquiring such Class A-1 Notes or any
interest or participation in the Class A-1 Notes for the account of another QIB, such other
QIB is aware that the sale is being made in reliance on Rule 144A under the Securities Act
and (C) is acquiring such Class A-1 Notes or any interest or participation in the Class A-1
Notes for its own account or for the account of another QIB.




     (iv) It is purchasing the Class A-1 Notes for its own account or for one or more
investor accounts for which it is acting as fiduciary or agent, in each case for investment,
and not with a view to offer, transfer, assign, participate, pledge or otherwise dispose of
such Class A-1 Notes in connection with any distribution of such Class A-1 Notes that would
violate the Securities Act.



     (k) Each Class D Note will bear a legend to the effect of the legend contained in Exhibit B
unless determined otherwise by the Administrator (as certified to the Indenture Trustee in an
Officer’s Certificate) consistent with applicable law.



     As a condition to the registration of any Class D Note Transfer, the prospective transferee of
such Class D Note will be deemed to represent to the Indenture Trustee, the Note Registrar and the
Issuer the following:




     (i) It understands that the Class D Notes have not been and will not be registered
under the Securities Act or any state or other applicable securities or “blue sky” law.




     (ii) It understands that Class D Note Transfers are only permitted if made in
compliance with the Securities Act and other applicable laws and only to a person that the
holder reasonably believes is a QIB.




     (iii) It (A) is a QIB, (B) is aware that the sale to it is being made in reliance on
Rule 144A under the Securities Act and if it is acquiring such Class D Notes or any interest
or participation in the Class D Notes for the account of another QIB, such other QIB is
aware that the sale is being made in reliance on Rule 144A under the Securities Act and (C)
is acquiring such Class D Notes or any interest or participation in the Class D Notes for
its own account or for the account of another QIB.




     (iv) It is purchasing the Class D Notes for its own account or for one or more investor
accounts for which it is acting as fiduciary or agent, in each case for investment, and not
with a view to offer, transfer, assign, participate, pledge or otherwise dispose of



5









 






such Class D Notes in connection with any distribution of such Class D Notes that would
violate the Securities Act.



     (l) By acceptance of any Class A-1 Note or Class D Note, the Class A-1 Noteholder or Class D
Noteholder, as applicable, specifically agrees with and represents to the Depositor, the Issuer and
the Note Registrar, that no Class A-1 Note Transfer or Class D Note Transfer, respectively, will be
made unless (i) the registration requirements of the Securities Act and any applicable State
securities laws have been complied with in respect of such class in accordance with Section 2.4(h),
(ii) such Class A-1 Note Transfer or Class D Note Transfer, as applicable, is to the Depositor or
its Affiliates, or (iii) such Class A-1 Note Transfer or Class D Note Transfer, as applicable, is
exempt from the registration requirements under the Securities Act because such Class A-1 Note
Transfer or Class D Note Transfer, as applicable, is in compliance with Rule 144A under the
Securities Act, to a transferee who the transferor reasonably believes is a Qualified Institutional
Buyer (as defined in the Securities Act) that is purchasing for its own account or for the account
of a Qualified Institutional Buyer and to whom notice is given that such Class A-1 Note Transfer or
Class D Note Transfer, as applicable, is being made in reliance upon Rule 144A under the Securities
Act.



     (m) The Depositor will make available to the prospective transferor and transferee of a Class
A-1 Note or Class D Note information requested to satisfy the requirements of paragraph (d)(4) of
Rule 144A (the “Rule 144A Information”). The Rule 144A Information will include any or all
of the following items requested by the prospective transferee:




     (i) the offering memorandum relating to the Class A-1 Notes or Class D Notes (if any),
as applicable, and any amendments or supplements to such offering memorandum;




     (ii) the Monthly Investor Report for each Payment Date preceding such request; and




     (iii) such other information as is reasonably available to the Indenture Trustee in
order to comply with requests for information pursuant to Rule 144A.



     (n) Each Note Owner that is subject to Title I of ERISA, Section 4975 of the Code or any
Similar Law, by accepting a beneficial interest in a Note, shall be deemed to represent that its
purchase and holding of such beneficial interest does not constitute and will not result in a
non-exempt prohibited transaction under Title I of ERISA or Section 4975 of the Code due to the
applicability of a statutory or administrative exemption from the prohibited transaction rules (or,
if the Note Owner is subject to any Similar Law, such purchase and holding does not constitute and
will not result in a violation of such Similar Law).



     Section 2.5. Mutilated, Destroyed, Lost or Stolen Notes.



     (a) If a mutilated Note is surrendered to the Indenture Trustee or the Indenture Trustee
receives evidence to its satisfaction of the destruction, loss or theft of a Note, then the Issuer
will execute and, upon Issuer Request, the Indenture Trustee will authenticate and deliver a
replacement Note of the same Class and principal amount in exchange for or in lieu of such Note so
long as (i) the Indenture Trustee receives such security or indemnity as may be required



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by it to hold the Issuer and the Indenture Trustee harmless, (ii) none of the Issuer, the Note
Registrar or the Indenture Trustee have received notice that such Note has been acquired by a
protected purchaser, as defined in Section 8-303 of the UCC and (iii) the requirements of Section
8-405 of the UCC are met. However, if any such destroyed, lost or stolen Note (but not a mutilated
Note) is due and payable within fifteen days or has been called for redemption, instead of issuing
a replacement Note, the Issuer may pay such destroyed, lost or stolen Note when so due or payable
or upon the Redemption Date without surrender of such Note. If a protected purchaser of the
original Note in lieu of which such replacement Note was issued (or such payment made) presents for
payment such original Note, the Issuer and the Indenture Trustee will be entitled to recover such
replacement Note (or such payment) from the Person to whom it was delivered or any Person taking
such replacement Note (or such payment) from such Person to whom such replacement Note (or such
payment) was delivered or any assignee of such Person, except a protected purchaser, and will be
entitled to recover upon the security or indemnity provided for such replacement Note (or such
payment) for any cost, expense, loss, damage, claim or liability incurred by the Issuer or the
Indenture Trustee in connection with such replacement Note (or such payment).




     (b) Upon the issuance of any replacement Note under Section 2.5(a), the Issuer may require the
Noteholder of such Note to pay an amount sufficient to cover any tax or other governmental charge
imposed and any other reasonable expenses incurred in connection with such replacement Note.



     (c) Each replacement Note issued pursuant to Section 2.5(a) will constitute an original
additional contractual obligation of the Issuer, whether or not the mutilated, destroyed, lost or
stolen Note will be enforceable by anyone and, except as otherwise provided in this Indenture, will
be entitled to all the benefits of this Indenture equally and proportionately with all other Notes
of the same Class duly issued under this Indenture.



     (d) This Section 2.5 is exclusive and precludes (to the extent lawful) all other rights and
remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Notes.



     Section 2.6. Persons Deemed Owners. On any date, the Issuer, the Indenture Trustee
and any agent of the Issuer or the Indenture Trustee may treat the Person in whose name any Note is
registered as of such date as the owner of such Note for the purpose of receiving payments of
principal of and any interest on such Note and for all other purposes, and none of the Issuer, the
Indenture Trustee or any agent of the Issuer or the Indenture Trustee will be affected by notice to
the contrary.



     Section 2.7. Payment of Principal and Interest.



     (a) Each Class of Notes will accrue interest at the applicable Note Interest Rate. Interest
on each Note will be due and payable on each Payment Date as specified in such Note. Interest on
the Class A-1 Notes will be computed on the basis of actual number of days elapsed and a 360-day
year. Interest on the Notes (other than the Class A-1 Notes) will be computed on the basis of a
360-day year consisting of twelve 30-day months.



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     (b) Interest and principal payments on each Class of Notes will be made ratably to the
Noteholders of such Class entitled to such payments. On each Payment Date, distributions to be
made with respect to interest on and principal of the Book-Entry Notes will be paid to the
Registered Noteholder by wire transfer in immediately available funds to the account designated by
the nominee of the Clearing Agency (initially, such nominee will be Cede & Co.). Distributions to
be made with respect to interest on and principal of the Definitive Notes will be paid to the
Registered Noteholder (i) if such Noteholder has provided to the Note Registrar appropriate
instructions at least five Business Days before such Payment Date and the aggregate original
principal amount of such Noteholder’s Notes is at least $1,000,000, by wire transfer in immediately
available funds to the account of such Noteholder or (ii) by check mailed first class mail, postage
prepaid, to such Registered Noteholder’s address as it appears on the Note Register on the related
Record Date. However, the final installment of principal (whether payable by wire transfer or
check) of each Note on a Payment Date, the Redemption Date or the applicable Final Scheduled
Payment Date will be payable only upon presentation and surrender of such Note. The Indenture
Trustee will notify each Registered Noteholder of the date on which the Issuer expects that the
final installment of principal of and interest on such Registered Noteholder’s Notes will be paid
not later than five days before such date. Such notice will specify the place where such Notes may
be presented and surrendered for payment of such installment. All funds paid by wire transfers or
checks that are returned undelivered will be held in accordance with Section 3.3.



     (c) The principal of each Note will be payable in installments on each Payment Date as
specified in such Note. The entire unpaid Note Balance of each Class of Notes will be due and
payable on the earlier of its applicable Final Scheduled Payment Date and the Redemption Date.
Notwithstanding the foregoing, the entire unpaid principal amount of the Notes will be due and
payable on the date on which the Notes are declared to be immediately due and payable in the manner
provided in Section 5.2(a).



     Section 2.8. Cancellation. Any Person that receives a Note surrendered for payment,
registration of transfer, exchange or redemption will deliver such Note to the Indenture Trustee.
The Indenture Trustee will promptly cancel all Notes it receives that have been surrendered for
payment, registration of transfer or exchange, or redemption. The Issuer may deliver to the
Indenture Trustee for cancellation any Notes previously authenticated and delivered under this
Indenture which the Issuer may have acquired in any manner, and the Indenture Trustee will promptly
cancel such Notes. No Notes will be authenticated in lieu of or in exchange for any Notes
cancelled as provided in this Section 2.8. The Indenture Trustee may hold or dispose of all
cancelled Notes in accordance with its standard retention or disposal policy unless the Issuer
directs, by Issuer Order, that they be destroyed or returned to it (so long as such Notes have not
been disposed of previously by the Indenture Trustee).



     Section 2.9. Release of Collateral. The Indenture Trustee will release property from
the Lien of this Indenture only in accordance with Sections 8.4 and 10.1.



     Section 2.10. Book-Entry Notes. The Class A-1 Notes, Class A-2 Notes, Class A-3
Notes, Class A-4 Notes, Class B Notes, Class C Notes and Class D Notes will be issued as Book-Entry
Notes on the Closing Date. The Book-Entry Notes, upon original issuance, will be issued in the
form of typewritten Notes representing the Book-Entry Notes and delivered to The



8









 




Depository Trust Company, the initial Clearing Agency, by, or on behalf of, the Issuer. The
Book-Entry Notes will be registered initially on the Note Register in the name of Cede & Co., the
nominee of the initial Clearing Agency, and no Note Owner will receive a Definitive Note
representing such Note Owner’s interest in such Note, except as provided in Section 2.11. Unless
and until definitive, fully registered Notes (the “Definitive Notes”) have been issued to
Note Owners pursuant to Section 2.11:




     (a) with respect to Book-Entry Notes, the Note Registrar and the Indenture Trustee will be
entitled to deal with the Clearing Agency for all purposes of this Indenture (including the payment
of principal of and interest on the Book-Entry Notes and the giving of notices, instructions or
directions under this Indenture) as the sole Noteholder of the Book-Entry Notes, and will have no
obligation to the Note Owners;



     (b) the Clearing Agency will make book-entry transfers among its participants and receive and
transmit payments of principal of and interest on the Book-Entry Notes to such participants;



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



     (d) the rights of Note Owners may be exercised only through the Clearing Agency and will be
limited to those established by law and agreements between such Note Owners and the Clearing Agency
and/or its participants pursuant to the DTC Letter; and



     (e) whenever this Indenture requires or permits actions to be taken based upon instructions or
directions of Noteholders of a specified percentage of the Note Balance of the Notes Outstanding
(or the Controlling Class), the Clearing Agency will be deemed to represent such percentage only to
the extent that it has received instructions to such effect from Note Owners and/or the Clearing
Agency’s participants owning or representing, respectively, such required percentage of the
beneficial interest of the Notes Outstanding (or the Controlling Class) and has delivered such
instructions to the Indenture Trustee.



     Section 2.11. Definitive Notes. With respect to any Class or Classes of Book-Entry
Notes, if (a) the Administrator notifies the Indenture Trustee that the Clearing Agency is no
longer willing or able to properly discharge its responsibilities as depository for the Book-Entry
Notes and the Administrator is unable to reach an agreement on satisfactory terms with a qualified
successor, (b) the Administrator notifies the Indenture Trustee that it elects to terminate the
book-entry system through the Clearing Agency or (c) after the occurrence of an Event of Default or
a Servicer Termination Event, so long as any Book-Entry Notes are Outstanding, Note Owners of a
majority of the Note Balance of the Controlling Class notify the Indenture Trustee and the Clearing
Agency that they elect to terminate the book-entry system through the Clearing Agency, then the
Clearing Agency will notify all Note Owners and the Indenture Trustee of the occurrence of such
election and of the availability of Definitive Notes to the Note Owners. After the Clearing Agency
has surrendered the typewritten Notes representing the Book-Entry Notes and delivered the
registration instructions to the Indenture Trustee, the Issuer will execute and the Indenture
Trustee, upon Issuer Request, will authenticate the Definitive Notes in accordance with the
instructions of the Clearing Agency. None of the Issuer, the Note Registrar or the



9









 




Indenture Trustee will be liable for any delay in delivery of such instructions and may
conclusively rely, and will be protected in relying, on such instructions. Upon the issuance of
Definitive Notes to Note Owners, the Indenture Trustee will recognize the holders of such
Definitive Notes as Noteholders.




     Section 2.12. Authenticating Agents.



     (a) The Indenture Trustee may appoint one or more Persons (each, an “Authenticating
Agent”) with the power to act on its behalf and subject to its direction in the authentication
of Notes in connection with issuances, transfers and exchanges under Sections 2.2, 2.4, 2.5 and
9.6, as though each such Authenticating Agent had been expressly authorized by those Sections to
authenticate such Notes. For all purposes of this Indenture, the authentication of Notes by an
Authenticating Agent pursuant to this Section 2.12 is deemed to be the authentication of Notes “by
the Indenture Trustee.”



     (b) Any Person into which an Authenticating Agent may be merged or converted or with which it
may be consolidated, or any Person resulting from any merger or consolidation or conversion to
which an Authenticating Agent is a party, or any Person succeeding to all or substantially all of
the corporate trust business of an Authenticating Agent, will be the successor of such
Authenticating Agent under this Indenture without the execution or filing of any document or any
further act.



     (c) An Authenticating Agent may resign by giving notice of resignation to the Indenture
Trustee and the Owner Trustee. The Indenture Trustee may terminate the agency of an Authenticating
Agent by giving notice of termination to such Authenticating Agent and the Owner Trustee. Upon
receiving such notice of resignation or upon such a termination, the Indenture Trustee may appoint
a successor Authenticating Agent and will notify the Owner Trustee of any such appointment.



     (d) Sections 2.8 and 6.4 will apply to each Authenticating Agent.



     Section 2.13. Note Paying Agents.



     (a) The Indenture Trustee may appoint one or more Note Paying Agents that meet the eligibility
standards for the Indenture Trustee specified in Section 6.11(a). The Note Paying Agents will have
the power to make distributions from the Trust Accounts.



     (b) Any Person into which a Note Paying Agent may be merged or converted or with which it may
be consolidated, or any Person resulting from any merger, consolidation or conversion to which a
Note Paying Agent is a party, or any Person succeeding to all or substantially all of the corporate
trust business of a Note Paying Agent, will be the successor of such Note Paying Agent under this
Indenture without the execution or filing of any document or any further act.



     (c) A Note Paying Agent may resign by giving notice of resignation to the Indenture Trustee,
the Administrator and the Issuer. The Indenture Trustee may terminate the agency of a Note Paying
Agent by giving notice of termination to such Note Paying Agent, the Administrator and the Issuer.
Upon receiving such notice of resignation or upon such a termination, the



10









 




Indenture Trustee may appoint a successor Note Paying Agent and will notify the Administrator
and the Issuer of any such appointment.




     (d) Sections 2.8 and 6.4 will apply to each Note Paying Agent.



ARTICLE III

COVENANTS AND REPRESENTATIONS




     Section 3.1. Payment of Principal and Interest. The Issuer will duly and punctually
pay the principal of and interest on the Notes in accordance with the Notes and this Indenture.
Amounts withheld under the Code or any State or local tax law by any Person from a payment to any
Noteholder will be considered as having been paid by the Issuer to such Noteholder.



     Section 3.2. Maintenance of Office or Agency. The Issuer will maintain an office or
agency in the Borough of Manhattan, The City of New York, where Notes may be surrendered for
registration of transfer or exchange, and where notices and demands to or upon the Issuer in
respect of the Notes and this Indenture may be served. The Issuer initially appoints the Indenture
Trustee to serve as its agent for such purposes. The Issuer will promptly notify the Indenture
Trustee of any change in the location of such office or agency. If the Issuer fails to maintain
any such office or agency or fails to furnish the Indenture Trustee with the address of such office
or agency, such surrenders, notices and demands may be made or served at the Corporate Trust
Office, and the Issuer appoints the Indenture Trustee as its agent to receive all such surrenders,
notices and demands.



     Section 3.3. Money for Payments To Be Held in Trust.



     (a) All payments of amounts due and payable with respect to any Notes that are to be made from
amounts withdrawn from the Bank Accounts will be made on behalf of the Issuer by the Indenture
Trustee or by another Note Paying Agent, and no amounts so withdrawn for payments on the Notes may
be paid over to or at the direction of the Issuer, except as provided in this Section 3.3.



     (b) The Indenture Trustee (including, if applicable, in its capacity as Note Paying Agent)
will, and will cause each Note Paying Agent (other than the Indenture Trustee itself) to, execute
and deliver to the Indenture Trustee, an instrument in which such Note Paying Agent agrees with the
Indenture Trustee to:




     (i) hold all sums held by it for the payment of amounts due on the Notes in trust for
the benefit of the Persons entitled to such sums until such sums are paid to such Persons or
otherwise disposed of as provided in this Indenture and pay such sums to such Persons as
provided in this Indenture;




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



11









 






     (iii) during the continuance of any such default, upon the request of the Indenture
Trustee, immediately pay to the Indenture Trustee all sums held in trust by such Note Paying
Agent;




     (iv) immediately resign as a Note Paying Agent and immediately pay to the Indenture
Trustee all sums held by it in trust for the payment of Notes if it ceases to meet the
eligibility standards specified in Section 6.11(a) with respect to the Indenture Trustee;
and




     (v) comply with all requirements of the Code and any State or local tax law with
respect to withholding and reporting requirements in connection with payments on the Notes.



     (c) The Issuer may by Issuer Order, direct any Note Paying Agent to pay to the Indenture
Trustee all sums held in trust by such Note Paying Agent, such sums to be held by the Indenture
Trustee upon the same terms as those upon which the sums were held by such Note Paying Agent. Upon
a Note Paying Agent’s payment of all sums held in trust to the Indenture Trustee, such Note Paying
Agent will be released from all further liability with respect to such money.



     (d) Subject to laws with respect to escheat of funds, any money held by the Indenture Trustee
or any Note Paying Agent in trust for the payment of any amount due with respect to any Note and
remaining unclaimed for two years after such amount has become due and payable will be discharged
from such trust and paid to the Issuer upon Issuer Request. After such discharge and payment, the
Noteholder of such Note will, as an unsecured general creditor, look only to the Issuer for payment
of such amount due and unclaimed (but only to the extent of the amounts so paid to the Issuer), and
all liability of the Indenture Trustee or such Note Paying Agent with respect to such trust money
will thereupon cease. However, the Indenture Trustee or such Note Paying Agent, before making any
such repayment, will publish once, at the expense and direction of the Issuer, in a newspaper
customarily published on each Business Day in the English language and of general circulation in
The City of New York, notice that such money remains unclaimed and that after a date specified in
such notice, which must be at least 30 days from the date of such publication, any unclaimed
balance of such money then remaining will be repaid to the Issuer. The Indenture Trustee will also
adopt and employ, at the expense of the Administrator and direction of the Issuer, any other
reasonable means of notification of such repayment (including notifying Noteholders whose Notes
have been called but have not been surrendered for redemption or whose right to or interest in
monies due and payable but not claimed is determinable from the records of the Indenture Trustee or
of any Note Paying Agent of such repayment, at the last address of record for each such
Noteholder).



     Section 3.4. Existence. The Issuer will keep in full effect its existence, rights and
franchises as a statutory trust under the Delaware Statutory Trust Act (unless it becomes, or any
successor Issuer under this Indenture is or becomes, organized under the laws of any other State or
of the United States, in which case the Issuer will keep in full effect its existence, rights and
franchises under the laws of such other jurisdiction) and will obtain and preserve its
qualification in each jurisdiction in which such qualification is or will be necessary to protect
the validity and



12









 




enforceability of this Indenture, the Notes, the Collateral and each other instrument or
agreement included in the Collateral.




     Section 3.5. Protection of Collateral.



     (a) The Issuer will (i) execute and deliver all such supplements and amendments to this
Indenture and instruments of further assurance and other instruments, (ii) file or authorize and
cause to be filed all such financing statements and amendments and continuations of such financing
statements and (iii) take such other action, in each case necessary or advisable to:




	 	(A)	 	maintain or preserve the Lien and security interest
(and the priority of such security interest) of this Indenture or carry out
more effectively the purposes of this Indenture;
	 
	 	(B)	 	perfect, publish notice of or protect the validity of
any Grant made or to be made by this Indenture;
	 
	 	(C)	 	enforce any of the Collateral; or
	 
	 	(D)	 	preserve and defend title to the Collateral and the
rights of the Indenture Trustee and the Secured Parties in such Collateral
against the claims of all Persons.





     (b) The Issuer authorizes the Administrator and the Indenture Trustee to file any financing or
continuation statements, and amendments to such statements, in all jurisdictions and with all
filing offices as are necessary or advisable to preserve, maintain and protect the interest of the
Indenture Trustee in the Collateral. Such financing and continuation statements may describe the
Collateral in any manner as the Administrator or the Indenture Trustee may reasonably determine to
ensure the perfection of the interest of the Indenture Trustee in the Collateral (including
describing the Collateral as “all assets” of the Issuer). The Administrator or the Indenture
Trustee, as applicable, will deliver to the Issuer file-stamped copies of, or filing receipts for,
any such financing statement and continuation statement promptly upon such document becoming
available following filing.



     (c) The Indenture Trustee is under no obligation (i) to make any determination of whether any
such financing or continuation statements, and amendments to such statements, are required to be
filed pursuant to this Section 3.5 or (ii) to file any such financing or continuation statements,
or amendment to such statements, and will not be liable for failure to do so.



     Section 3.6. Performance of Obligations; Servicing of Receivables.



     (a) No Release of Material Covenants or Obligations. The Issuer will not take any
action, and will use commercially reasonable efforts to prevent any action from being taken by
others, that would release any Person from any material covenants or obligations under any
instrument or agreement included in the Collateral or that would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the validity or effectiveness
of, any such instrument or agreement, except as provided in any Transaction Document.



13









 





     (b) Contracting. The Issuer may contract with other Persons to assist it in
performing its duties under this Indenture, and any performance of such duties by a Person
identified to the Indenture Trustee in an Officer’s Certificate of the Issuer will be deemed to be
action taken by the Issuer. Initially, the Issuer has contracted with the Servicer and the
Administrator to assist the Issuer in performing its duties under this Indenture.



     (c) Performance of Obligations. The Issuer will punctually perform and observe all of
its obligations and agreements contained in the Transaction Documents and in the instruments and
agreements included in the Collateral.



     (d) Servicer Termination Event. If the Issuer has actual knowledge of the occurrence
of a Servicer Termination Event, the Issuer will promptly notify the Indenture Trustee and the
Rating Agencies of such occurrence and specify in such notice any action the Issuer is taking in
respect of such event. If a Servicer Termination Event arises from the failure of the Servicer to
perform any of its duties and obligations under the Sale and Servicing Agreement with respect to
the Receivables, the Issuer will take all reasonable steps available to cause the Servicer to
remedy such failure.



     Section 3.7. Negative Covenants. So long as any Notes are Outstanding, the Issuer
will not:



     (a) except as permitted by any Transaction Document, sell, transfer, exchange or otherwise
dispose of any part of the Collateral unless directed to do so by the Indenture Trustee;



     (b) claim any credit on, or make any deduction from the principal or interest payable in
respect of, the Notes (other than amounts withheld from such payments under the Code or any State
or local tax law) or assert any claim against any present or former Noteholder by reason of the
payment of the taxes levied or assessed upon the Issuer or the Collateral;



     (c) dissolve or liquidate in whole or in part;



     (d) permit (i) the validity or effectiveness of this Indenture to be impaired, or permit the
Lien of this Indenture to be amended, hypothecated, subordinated, terminated or discharged, or
permit any Person to be released from any covenants or obligations with respect to the Notes under
this Indenture except in each case as permitted by this Indenture, (ii) any Lien other than
Permitted Liens to be created on or extend to or otherwise arise upon or burden the Collateral or
(iii) the Lien of this Indenture not to constitute a valid first priority security interest in the
Collateral (other than with respect to Permitted Liens); or



     (e) except as otherwise provided in any Transaction Document, amend, modify, waive,
supplement, terminate or surrender the terms of any Collateral or any of the Transaction Documents
without the consent of the Indenture Trustee or the Noteholders of a majority of the Note Balance
of the Notes Outstanding and upon notice by the Issuer to the Rating Agencies.



     Section 3.8. Opinions as to Collateral.



     (a) If this Indenture is subject to recording in any appropriate public recording offices, the
Issuer, at its expense, will effect such recording and deliver an Opinion of Counsel to



14









 




the Indenture Trustee (which may be counsel to the Issuer or any other counsel reasonably
acceptable to the Indenture Trustee) to the effect that such recording is necessary either for the
protection of the Secured Parties or any other Person secured under this Indenture or for the
enforcement of any right or remedy granted to the Indenture Trustee under this Indenture.




     (b) On the Closing Date, the Issuer will furnish to the Indenture Trustee an Opinion of
Counsel to the effect that this Indenture and all financing statements and continuation statements
have been properly recorded and filed to make effective the Lien intended to be created by this
Indenture, and reciting the details of such action, or stating that in the opinion of such counsel
no such action is necessary to make such Lien effective.



     (c) On or before April 30 in each calendar year, beginning in the year after the Closing Date,
the Issuer will furnish to the Indenture Trustee an Opinion of Counsel either to the effect that,
in the opinion of such counsel, such action has been taken with respect to the recording, filing,
re-recording and refiling of this Indenture and all financing statements and continuation
statements, as is necessary to maintain the Lien of this Indenture, and reciting the details of
such action, or to the effect that in the opinion of such counsel no such action is necessary to
maintain such Lien.



     Section 3.9. Annual Statement as to Compliance. The Issuer will deliver to the
Indenture Trustee within 90 days after the end of each calendar year, an Officer’s Certificate,
dated as of December 31 of the preceding year stating, as to the Responsible Person signing such
Officer’s Certificate, that (a) a review of the Issuer’s activities and of its performance under
this Indenture during the preceding calendar year (or, in the case of the first certificate, the
portion of the preceding calendar year since the Closing Date) has been made under such Responsible
Person’s supervision and (b) to such Responsible Person’s knowledge, based on such review, the
Issuer has complied in all material respects with all conditions and covenants to be complied with
by the Issuer under this Indenture during the preceding calendar year, or, if there has been a
failure to comply in any material respect that is continuing, specifying each such failure known to
such Responsible Person and the nature and status of such failure. If the Issuer is not required
to file periodic reports under the Exchange Act or otherwise required by law to file an Officer’s
Certificate of the Issuer as to compliance, such Officer’s Certificate may be delivered on or
before April 30 of each calendar year. A copy of the Officer’s Certificate referred to in this
Section 3.9 may be obtained by any Noteholder or Person certifying it is a Note Owner by a request
in writing to the Indenture Trustee at its Corporate Trust Office. The Issuer’s obligation to
deliver an Officer’s Certificate under this Section 3.9 will terminate upon the payment in full of
the Notes, including by redemption in whole pursuant to Section 10.1.



     Section 3.10. Consolidation and Merger; Sale of Assets. The Issuer will not
consolidate or merge with or into any other Person or convey or transfer all or substantially all
of the assets included in the Collateral to any Person, unless:



     (a) the Person (if other than the Issuer) formed by or surviving such consolidation or merger,
or that acquires the properties and assets, (i) is organized and existing under the laws of the
United States or any State and (ii) assumes, by an indenture supplemental to this Indenture,
executed and delivered to the Indenture Trustee, in form reasonably satisfactory to the Indenture
Trustee, the due and punctual payment of the principal of and interest on all Notes and the



15









 




performance or observance of every agreement and covenant of this Indenture to be performed or
observed by the Issuer, all as provided in this Indenture;




     (b) with respect to a conveyance or transfer of all or substantially all of the assets
included in the Collateral, the Person that acquires the properties and assets agrees by means of
the supplemental indenture executed and delivered pursuant to clause (a) (i) that all right, title
and interest so conveyed or transferred will be subject and subordinate to the rights of the
Noteholders, (ii) unless otherwise provided in such supplemental indenture, to indemnify, defend
and hold harmless the Issuer from and against any costs, expenses, losses, damages, claims and
liabilities (including attorneys’ fees) arising under or related to this Indenture and the Notes
and (iii) that such Person will make all filings with the Securities and Exchange Commission (and
any other appropriate Person) required by the Exchange Act in connection with the Notes;



     (c) immediately after giving effect to such consolidation, merger or sale, no Default or Event
of Default will have occurred and be continuing;



     (d) the Rating Agency Condition has been satisfied with respect to such consolidation, merger
or sale;



     (e) the Issuer has received an Opinion of Counsel (and has delivered copies of such Opinion of
Counsel to the Indenture Trustee) to the effect that such consolidation, merger or sale will not
cause (i) any security issued by the Issuer to be deemed sold or exchanged for purposes of Section
1001 of the Code or (ii) the Issuer to be treated as an association or publicly traded partnership
taxable as a corporation for U.S. federal income tax purposes;



     (f) any action that is necessary to maintain the Lien and security interest created by this
Indenture has been taken; and



     (g) the Issuer has delivered to the Depositor, the Servicer, the Owner Trustee and the
Indenture Trustee an Officer’s Certificate and an Opinion of Counsel each to the effect that such
consolidation, merger or sale and such supplemental indenture comply with this Article III and that
all conditions precedent in this Indenture relating to such consolidation, merger or sale have been
complied with (including any filing required by the Exchange Act).



     Section 3.11. Successor or Transferee.



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



     (b) Upon a conveyance or sale of all or substantially all of the assets and properties of the
Issuer pursuant to Section 3.10, the Issuer will be released from every covenant and agreement of
this Indenture to be performed or observed by the Issuer with respect to the Notes immediately upon
the delivery of notice to the Indenture Trustee stating that the Issuer is to be so released.



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     Section 3.12. No Other Activities. The Issuer will not engage in any activities other
than financing, acquiring, owning and pledging the Trust Property in the manner contemplated by the
Transaction Documents and activities incidental to such activities.



     Section 3.13. Further Instruments and Acts. Upon request of the Indenture Trustee,
the Issuer will execute and deliver such further instruments and do such further acts as may be
reasonably necessary or proper to carry out the purpose of this Indenture.



     Section 3.14. Restricted Payments.



     (a) The Issuer will not, directly or indirectly, (i) make any distribution (by reduction of
capital or otherwise) to the Owner Trustee or any owner of a beneficial interest in the Issuer or
otherwise with respect to any ownership or equity interest or security in or of the Issuer or to
the Servicer or the Administrator, (ii) redeem, purchase, retire or otherwise acquire for value any
such ownership or equity interest or security or (iii) set aside or otherwise segregate any amounts
for any such purpose.



     (b) Notwithstanding Section 3.14(a), the Issuer may make payments to the Servicer, the
Administrator, the Owner Trustee, the Indenture Trustee, the Noteholders and the Depositor to the
extent contemplated by the Transaction Documents.



     (c) The Issuer will not, directly or indirectly, make payments to or distributions from the
Collection Account or the Principal Payment Account except in accordance with the Transaction
Documents.



     Section 3.15. Notice of Events of Default. The Issuer will notify the Indenture
Trustee, the Servicer and the Rating Agencies within five Business Days after a Responsible Person
of the Issuer has actual knowledge of an Event of Default.



     Section 3.16. Representations and Warranties of the Issuer as to Security Interest.
The Issuer represents and warrants to the Indenture Trustee as of the Closing Date:



     (a) This Indenture creates a valid and continuing security interest (as defined in the
applicable UCC) in the Collateral in favor of the Indenture Trustee which security interest is
prior to all other Liens, and is enforceable as such against creditors of and purchasers from the
Issuer.



     (b) The Sponsor has represented that it has commenced procedures that will result in the
perfection of a first priority security interest against each Obligor in the Financed Vehicles.



     (c) All of the Permitted Investments have been and will be credited to a Securities Account.
The securities intermediary for each Securities Account has agreed to treat all assets credited to
the Securities Accounts as “financial assets” within the meaning of the applicable UCC. The
Collateral (other than those Permitted Investments which have been credited to a Securities
Account) constitutes “chattel paper,” “instruments” or “general intangibles” within the meaning of
the applicable UCC.



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     (d) The Issuer owns and has good and marketable title to the Collateral free and clear of any
Lien other than Permitted Liens. The Issuer has received all consents and approvals required by
the terms of the Collateral to Grant to the Indenture Trustee all of its interest and rights in the
Collateral, except to the extent that any requirement for consent or approval is rendered
ineffective under the applicable UCC.



     (e) The Issuer has caused, or will cause within ten days after the Closing Date, 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 Granted in the Collateral to the
Indenture Trustee.



     (f) The Issuer has delivered to the Indenture Trustee a fully executed agreement pursuant to
which the securities intermediary has agreed to comply with all instructions originated by the
Indenture Trustee relating to the Securities Accounts without further consent by the Issuer.



     (g) Other than the security interest Granted to the Indenture Trustee pursuant to this
Indenture, the Issuer has not pledged, assigned, sold, granted a security interest in, or otherwise
conveyed any part of the Collateral. The Issuer has not authorized the filing of and is not aware
of any financing statements against the Issuer that include a description of collateral covering
any part of the Collateral, other than any financing statements relating to the security interest
Granted to the Indenture Trustee. The Issuer is not aware of any judgment or tax lien filings
against it.



     (h) The Securities Accounts are not in the name of any Person other than the Issuer or the
Indenture Trustee. The Issuer has not consented to the securities intermediary of any Securities
Account complying with entitlement orders of any Person other than the Indenture Trustee.



     (i) All financing statements filed or to be filed against the Issuer, or any assignor of which
the Issuer is the assignee, in favor of the Indenture Trustee in connection with this Indenture
describing the Collateral contain a statement substantially to the following effect: “The purchase
of or grant of a security interest in any collateral described in this financing statement will
violate the rights of the Secured Parties.”



     The representations and warranties in this Section 3.16, (i) will survive the termination of
this Indenture and (ii) may not be waived by the Indenture Trustee.



     Section 3.17. Audits of the Issuer. The Issuer agrees that, with reasonable prior
notice, it will permit any authorized representative of the Indenture Trustee, the Servicer or the
Administrator, during the Issuer’s normal business hours, to examine and audit the books of
account, records, reports and other documents and materials of the Issuer relating to the
performance of the Issuer’s obligations under this Indenture. In addition, the Issuer will permit
such representatives to make copies and extracts of any such books and records and to discuss the
same with the Issuer’s officers and registered public accountants. Each of the Indenture Trustee,
the Servicer and the Administrator will, and will cause its authorized representatives to, hold in
confidence all such information except to the extent (a) disclosure may be required by



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law (and all reasonable applications for confidential treatment are unavailing) or (b) that
the Indenture Trustee, the Servicer or the Administrator, as the case may be, reasonably determines
that such disclosure is consistent with its obligations under this Indenture.




     Section 3.18. Representations and Warranties of the Issuer. The Issuer represents and
warrants to the Indenture Trustee as of the Closing Date:



     (a) Organization and Qualification. The Issuer is a statutory trust duly formed,
validly existing and in good standing under the laws of the State of Delaware.



     (b) Power, Authorization and Enforceability. The Issuer has the power and authority
to execute, deliver and perform the terms this Indenture. The Issuer has authorized the execution,
delivery and performance of the terms of this Indenture. This Indenture is the legal, valid and
binding obligation of the Issuer enforceable against the Issuer, except as may be limited by
insolvency, bankruptcy, reorganization or other laws relating to the enforcement of creditors’
rights or by general equitable principles.



     (c) No Conflicts and No Violation. The execution and delivery by the Issuer of this
Indenture, the consummation by the Issuer of the transactions contemplated by this Indenture and
the compliance by the Issuer with this Indenture will not (i) violate any Delaware State law,
governmental rule or regulation applicable to the Issuer or any judgment or decree binding on it or
(ii) conflict with, result in a breach of, or constitute (with or without notice or lapse of time
or both) a default under any indenture, mortgage, deed of trust, loan agreement, guarantee or
similar agreement or instrument under which the Issuer is a debtor or guarantor, in each case which
conflict, breach, default, Lien, or violation would reasonably be expected to have a material
adverse effect on the Issuer’s ability to perform its obligations under this Indenture.



     (d) No Proceedings. To the Issuer’s knowledge, there are no proceedings or
investigations pending or overtly threatened in writing before any court or other governmental
authority of the State of Delaware: (i) asserting the invalidity of any of the Transaction
Documents or the Notes (ii) seeking to prevent the issuance of the Notes or the consummation of any
of the transactions contemplated by any of the Transaction Documents, (iii) seeking any
determination or ruling that would reasonably be expected to have a material adverse effect on the
Trust Property or the Issuer’s ability to perform its obligations under, or the validity or
enforceability any of the Transaction Documents or the Notes.



     (e) Investment Company Act. The Issuer is not an “investment company” as defined in
the Investment Company Act.



ARTICLE IV

SATISFACTION AND DISCHARGE




     Section 4.1. Satisfaction and Discharge of Indenture.



     (a) Subject to Section 4.1(b), this Indenture will cease to be of further effect with respect
to the Notes, and the Indenture Trustee, upon Issuer Order and at the expense of the Issuer, will
execute proper instruments, in form and substance reasonably satisfactory to the



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Indenture Trustee, acknowledging satisfaction and discharge of this Indenture with respect to
the Notes, if:





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




     (ii) the Issuer has paid or caused to be paid all other sums payable by it under the
Transaction Documents by the Issuer; and




     (iii) the Issuer has delivered to the Indenture Trustee an Officer’s Certificate and an
Opinion of Counsel, each to the effect that all conditions precedent relating to the
satisfaction and discharge of this Indenture pursuant to this Section 4.1(a) have been
complied with.



     (b) After the satisfaction and discharge of this Indenture pursuant to Section 4.1(a), this
Indenture will continue as to (i) rights of registration of transfer and exchange, (ii) replacement
of mutilated, destroyed, lost or stolen Notes, (iii) the rights of Noteholders to receive payments
of principal of and interest on the Notes, (iv) Sections 3.3, 3.4, 3.5, 3.7, 3.10, 3.12, 3.13, 3.14
and 3.15, (v) the rights, obligations and immunities of the Indenture Trustee under this Indenture
and (vi) the rights of the Secured Parties as beneficiaries of this Indenture with respect to the
property deposited with the Indenture Trustee payable to all or any of them for a period of two
years following such satisfaction and discharge.



     (c) Upon the satisfaction and discharge of the Indenture pursuant to this Section 4.1, at the
request of the Owner Trustee, the Indenture Trustee will deliver to the Owner Trustee a certificate
of a Responsible Person stating that all Noteholders have been paid in full.



ARTICLE V

REMEDIES




     Section 5.1. Events of Default.



     (a) The occurrence of any one of the following events will constitute an event of default
under this Indenture (each, an “Event of Default”):




     (i) failure to pay interest due on any Note of the Controlling Class when the same
becomes due and payable on each Payment Date, and such failure continues for a period of
five days or more;




     (ii) failure to pay the principal of any Note at its Final Scheduled Payment Date or
Redemption Date, if any;




     (iii) failure to observe or perform any material covenant or agreement of the Issuer
made in this Indenture (other than covenants and agreements as to which the




20











 






failure to observe or perform is specifically covered elsewhere in this Section 5.1) or any
representation or warranty of the Issuer made in this Indenture or in any Officer’s Certificate or
other document delivered pursuant to or in connection with this Indenture proves to have been
incorrect in any material respect as of the time made and, in each case, such failure or
incorrectness continues for a period of 60 days after notice was given to the Issuer by the
Indenture Trustee or to the Issuer and the Indenture Trustee by the Noteholders of at least 25% of
the Note Balance of the Controlling Class specifying such failure or incorrectness, requiring it to
be remedied and stating that such notice is a “Notice of Default”; or




     (iv) the occurrence of an Insolvency Event with respect to the Issuer.



     (b) The Issuer will notify the Indenture Trustee within five Business Days after a Responsible
Person of the Issuer has actual knowledge of the occurrence of an event set forth in Section
5.1(a)(iii) which with the giving of notice and the lapse of time would become an Event of Default,
which notice will describe such Default, the status of such Default and what action the Issuer is
taking or proposes to take with respect to such Default. The Issuer will send a copy of such
notice to each Qualified Institution (if not the Indenture Trustee) maintaining a Bank Account.



     (c) The Indenture Trustee will notify the Noteholders within five Business Days after a
Responsible Person of the Indenture Trustee has actual knowledge of the occurrence of an Event of
Default.



     Section 5.2. Acceleration of Maturity; Rescission and Annulment.



     (a) If an Event of Default occurs and is continuing, the Indenture Trustee or the Noteholders
of a majority of the Note Balance of the Controlling Class may declare all of the Notes to be
immediately due and payable, by notice to the Issuer (and to the Indenture Trustee if given by the
Noteholders). Upon any such declaration, the unpaid Note Balance of the Notes, together with
accrued and unpaid interest through the date of acceleration, will become immediately due and
payable. If an Event of Default described in Section 5.1(a)(iv) occurs, all unpaid principal of
and accrued and unpaid interest on the Notes, and all other amounts payable under this Indenture,
will automatically become due and payable without any declaration or other act on the part of the
Indenture Trustee or any Noteholder. Upon any such declaration or automatic acceleration, the
Indenture Trustee will promptly notify each Noteholder and each Qualified Institution (if not the
Indenture Trustee) maintaining a Bank Account.



     (b) The Noteholders of a majority of the Note Balance of the Controlling Class, by notice to
the Issuer and the Indenture Trustee, may rescind and annul a declaration of acceleration of
maturity and its consequences before a judgment or decree for payment of the amount due has been
obtained by the Indenture Trustee as provided in this Article V if:




     (i) the Issuer has paid or deposited with the Indenture Trustee an amount sufficient to
(A) pay all principal of and interest on the Notes and all other amounts that would then be
due under this Indenture or upon the Notes if the Event of Default giving rise to such
acceleration had not occurred, (B) pay all amounts owed to the Indenture



21









 







Trustee under Section 6.7, and (C) pay all other outstanding fees and expenses of the
Issuer, and




     (ii) all Events of Default, other than the non-payment of the principal of the Notes
that has become due solely by such acceleration, have been cured or waived as provided in
Section 5.14.



     No such rescission will affect any subsequent default or impair any right resulting from such
rescission.



     Section 5.3. Collection of Indebtedness by the Indenture Trustee.



     (a) The Issuer covenants that if an Event of Default under Section 5.1(a)(i) or (ii) occurs
and continues, the Issuer, upon demand of the Indenture Trustee, will pay to the Indenture Trustee
for the benefit of the Noteholders, such overdue amount with interest on any overdue principal at
the applicable Note Interest Rate and, to the extent lawful, with interest on any overdue interest
at the applicable Note Interest Rate. In addition, the Issuer covenants to pay, or to cause the
Administrator to pay, the costs and expenses of collection, including all amounts owed to the
Indenture Trustee under Section 6.7.



     (b) If the Issuer fails to pay such amounts upon such demand, the Indenture Trustee, in its
own name and as trustee of an express trust, may institute a Proceeding for the collection of the
sums so due and unpaid, and may prosecute such Proceeding to final judgment, and may enforce the
same against the Issuer and collect the monies adjudged to be payable in the manner provided by law
out of the Collateral.



     Section 5.4. Trustee May File Proofs of Claim.



     (a) If there is pending, relative to the Issuer, Proceedings under the Bankruptcy Code or any
other federal or State bankruptcy, insolvency or other similar law, or in case a trustee,
liquidator, receiver or similar official has been appointed for or taken possession of the Issuer
or its property, the Indenture Trustee, irrespective of whether the Indenture Trustee has made any
demand pursuant to Section 5.3, may:




     (i) file and prove a claim or claims for the whole amount of principal and interest
owing and unpaid in respect of the Notes and file such other papers or documents as may be
necessary or advisable in order to have the claims of the Indenture Trustee on behalf of the
Secured Parties allowed in such Proceedings (including any amounts due to the Indenture
Trustee pursuant to Section 6.7);




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




     (iii) collect and receive any monies or other property payable or deliverable on any
such claims and pay all amounts received with respect to the claims of the Secured Parties,
including such claims asserted by the Indenture Trustee on their behalf; and



22









 






     (iv) file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Indenture Trustee and any Secured Parties
allowed in any judicial proceedings relative to the Issuer, its creditors and its property.



     Any trustee, liquidator, receiver or similar official in any such Proceeding is authorized by
each Noteholder to make payments to the Indenture Trustee, and, if the Indenture Trustee consents
to the making of payments directly to such Noteholders, to pay to the Indenture Trustee an amount
sufficient to cover all amounts owed to the Indenture Trustee under Section 6.7.



     (b) Except as provided in Section 5.4(a)(ii), this Indenture does not authorize the Indenture
Trustee to authorize or consent to or vote for or accept or adopt on behalf of any Noteholder any
plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of
any Noteholder to authorize the Indenture Trustee to vote in respect of the claim of any Noteholder
in any such Proceeding.



     Section 5.5. Trustee May Enforce Claims Without Possession of Notes.



     (a) All rights of action and claims under this Indenture, or under any of the Notes, may be
enforced by the Indenture Trustee without the possession of any of the Notes or the production of
any of the Notes in any Proceeding relative to any of the Notes, and any such Proceeding instituted
by the Indenture Trustee will be brought in its own name as trustee of an express trust, and any
recovery of judgment, subject to the amounts owed to the Indenture Trustee under Section 6.7, will
be for the benefit of the Secured Parties in respect of which such judgment has been recovered.



     (b) In any Proceeding brought by the Indenture Trustee (and any Proceeding involving the
interpretation of this Indenture to which the Indenture Trustee is a party), the Indenture Trustee
will be held to represent all the Noteholders, and it will not be necessary to make any Noteholder
a party to any such Proceeding.



     Section 5.6. Remedies; Priorities.



     (a) If the Notes have been accelerated under Section 5.2(a), the Indenture Trustee may do one
or more of the following (subject to Section 5.7), and will upon direction by the Noteholders of a
majority of the Note Balance of the Controlling Class:




     (i) institute a Proceeding in its own name and as trustee of an express trust for the
collection of all amounts then payable on the Notes or under this Indenture with
respect to the Notes, enforce any judgment obtained and collect from the Issuer monies
adjudged due;




     (ii) institute a Proceeding for the complete or partial foreclosure of this Indenture
with respect to the Collateral;




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



23









 





     (iv) sell or otherwise liquidate all or any portion of the Collateral or rights or
interest in the Collateral at one or more public or private sales called and conducted in
any manner permitted by law.



     The Indenture Trustee will notify each Noteholder and the Depositor of any sale or liquidation
pursuant to Section 5.6(a)(iv) at least fifteen days before such sale or liquidation. Any
Noteholder or the Depositor may submit a bid with respect to such sale or liquidation.



     (b) Notwithstanding Section 5.6(a), the Indenture Trustee is prohibited from selling or
otherwise liquidating the Collateral unless:




	 	(i)	 	the Event of Default is described in Section 5.1(a)(i) or (ii); or
	 
	 	(ii)	 	the Event of Default is described in Section 5.1(a)(iii) and:






	 	(A)	 	the Noteholders representing 100% of the Note Balance
of the Notes Outstanding consent to such sale or liquidation; or
	 
	 	(B)	 	the proceeds of such sale or liquidation are expected
to be sufficient to pay in full all amounts owed by the Issuer to the
Secured Parties including all principal of and accrued interest on the
Notes Outstanding;






	 	(iii)	 	the Event of Default is described in Section 5.1(a)(iv) and:






	 	(A)	 	the Noteholders representing 100% of the Note Balance
of the Controlling Class consent to such sale or liquidation; or
	 
	 	(B)	 	the proceeds of such sale or liquidation are expected
to be sufficient to pay in full all amounts owed by the Issuer to the
Secured Parties including all principal of and accrued interest on the
Notes Outstanding; or
	 
	 	(C)	 	the Indenture Trustee (1) determines (but will have no
obligation to make such determination) that the Collateral will not
continue to provide sufficient funds for the payment of all amounts owed to
the Secured Parties, as those payments would have become due if the Notes
had not been declared due and payable and (2) obtains the
consent of Noteholders of at least 66-2/3% of the Note Balance of the
Controlling Class.





     In determining whether the condition specified in clause (ii)(B), (iii)(B) or (iii)(C)(1)
above has been satisfied, the Indenture Trustee may, but need not, obtain and rely upon an opinion
of a nationally recognized Independent investment banking firm or firm of certified public
accountants as to the expected proceeds or as to the sufficiency of the Collateral for such
purpose.



24









 





     (c) Any money or property collected by the Indenture Trustee following the occurrence of an
Event of Default and an acceleration of the Notes, will be deposited into the Collection Account
for distribution in accordance with Section 8.2(e) on the Payment Date following the Collection
Period during which such amounts are collected. In all other circumstances, Section 8.2(c) will
continue to apply after an Event of Default.



     Section 5.7. Optional Preservation of the Collateral. If the Notes have been
accelerated under Section 5.2(a) and such declaration and its consequences have not been rescinded
and annulled in accordance with Section 5.2(b), the Indenture Trustee may elect to maintain
possession of the Collateral. It is the intention of the parties to this Indenture and the
Noteholders that there at all times be sufficient funds derived from the Collateral for the payment
of principal of and interest on the Notes. The Indenture Trustee will take such intention into
account when determining whether or not to maintain possession of all or any portion of the
Collateral. In determining whether to maintain possession of all or any portion of the Collateral,
the Indenture Trustee may obtain and rely upon an opinion of a nationally recognized Independent
investment banking firm or firm of certified public accountants as to the feasibility of such
proposed action and as to the sufficiency of the Collateral for such purpose.



     Section 5.8.
Limitation on Suits.



     (a) No Noteholder has any right to institute any Proceeding with respect to this Indenture or
for the appointment of a receiver or trustee, or for any other remedy under this Indenture, unless:




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




     (ii) the Noteholders of at least 25% of the Note Balance of the Controlling Class have
requested the Indenture Trustee to institute such Proceeding in respect of such Event of
Default in its own name as Indenture Trustee under this Indenture;




     (iii) such Noteholders have offered reasonable indemnity satisfactory to the Indenture
Trustee against any costs, expenses, losses, damages, claims and liabilities that may be
incurred by the Indenture Trustee, or its agents, counsel, accountants and experts, in
complying with such request;




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




     (v) the Noteholders of a majority of the Note Balance of the Controlling Class have not
given the Indenture Trustee any direction inconsistent with such request during such 60 day
period.



     (b) No Noteholder has any right to affect, disturb or prejudice the rights of any other
Noteholder or to obtain or to seek to obtain priority or preference over any other Noteholder or to
enforce any right under this Indenture, except in the manner provided in this Indenture.



25









 





     (c) If the Indenture Trustee receives conflicting requests pursuant to Section 5.8(a)(ii) from
two or more groups of Noteholders, each evidencing less than a majority of the Note Balance of the
Controlling Class, the Indenture Trustee in its sole discretion may determine what action, if any,
will be taken.



     Section 5.9. Unconditional Rights of Noteholders to Receive Principal and Interest.
Notwithstanding any other provision in this Indenture, each Noteholder has an absolute and
unconditional right to receive payment of the principal of and any interest on its Note on or after
the respective due dates expressed in such Note or in this Indenture (or, in the case of
redemption, on or after the Redemption Date) in accordance with the provisions of this Indenture
and of the other Transaction Documents and to institute a Proceeding for the enforcement of any
such payment in accordance with Section 5.8. Such rights may not be impaired or affected without
the consent of such Noteholder.



     Section 5.10. Restoration of Rights and Remedies. If the Indenture Trustee or any
Noteholder has instituted any Proceeding to enforce any right or remedy under this Indenture and
such Proceeding has been discontinued or abandoned for any reason or has been determined adversely
to the Indenture Trustee or to such Noteholder, then the Issuer, the Indenture Trustee and the
Noteholders, subject to any determination in such Proceeding, will be restored severally and
respectively to their former positions under this Indenture, and subsequently all rights and
remedies of the Indenture Trustee and the Noteholders will continue as though no such Proceeding
had been instituted.



     Section 5.11. Rights and Remedies Cumulative. No right or remedy conferred upon or
reserved to the Indenture Trustee or to the Noteholders in this Indenture is intended to be
exclusive of any other right or remedy, and every right and remedy, to the extent permitted by law,
will be cumulative and in addition to every other right and remedy given under this Indenture or
now or in the future existing at law or in equity or otherwise. The assertion or employment of any
right or remedy under this Indenture, or otherwise, will not prevent the concurrent assertion or
employment of any other appropriate right or remedy. The Indenture Trustee’s right to seek and
recover judgment on the Notes or under this Indenture will not be affected by the seeking,
obtaining or application of any other relief under or with respect to this Indenture. Neither the
Lien of this Indenture nor any rights or remedies of the Indenture Trustee or the Noteholders will
be impaired by the recovery of any judgment by the Indenture Trustee against the Issuer or by the levy of any execution under
such judgment upon any of the Collateral.



     Section 5.12. Delay or Omission Not a Waiver. No delay or omission of the Indenture
Trustee or any Noteholder to exercise any right or remedy accruing upon any Default or Event of
Default will impair any such right or remedy, or constitute a waiver of any such Default or Event
of Default. Every right and remedy conferred by this Article V or by law to the Indenture Trustee
or to the Noteholders may be exercised from time to time, and as often as may be deemed expedient,
by the Indenture Trustee or by the Noteholders, as the case may be.



     Section 5.13. Control by Noteholders. The Noteholders of a majority of the Note
Balance of the Controlling Class have the right to direct the time, method and place of



26









 







conducting any Proceeding for any remedy available to the Indenture Trustee with respect to the Notes or
exercising any trust or power conferred on the Indenture Trustee; provided that:



     (a) such direction does not conflict with any law or with this Indenture;



     (b) except as provided in Section 5.6(b), any direction to the Indenture Trustee to sell or
liquidate the Collateral must be made by the Noteholders of 100% of the Note Balance of the
Controlling Class;



     (c) if the Indenture Trustee elects to retain the Collateral pursuant to Section 5.7, then any
direction to the Indenture Trustee by Noteholders of less than 100% of the Note Balance of the
Controlling Class to sell or liquidate the Collateral will be of no force and effect; and



     (d) the Indenture Trustee may take any other action deemed proper by the Indenture Trustee
that is not inconsistent with such direction from the Noteholders of a majority of the Note Balance
of the Controlling Class.



     Notwithstanding the rights of Noteholders set forth in this Section 5.13, the Indenture
Trustee need not take any action that it determines might materially adversely affect the rights of
any Noteholders not consenting to such action.



     Section 5.14. Waiver of Defaults and Events of Default.



     (a) The Noteholders of a majority of the Note Balance of the Controlling Class may waive any
Default or Event of Default and its consequences except an Event of Default (i) in the payment of
principal of or interest on any of the Notes (other than an Event of Default relating to failure to
pay principal due only by reason of acceleration) or (ii) in respect of a covenant or provision of
this Indenture that cannot be amended, supplemented or modified without the consent of all
Noteholders.



     (b) Upon any such waiver, such Default or Event of Default will be deemed not to have occurred
for every purpose of this Indenture. No such waiver will extend to any other Default or Event of
Default or impair any right relating to any other Default or Event of Default.



     Section 5.15. Undertaking for Costs. The parties to this Indenture agree, and each
Noteholder by such Noteholder’s acceptance of a Note will be deemed to have agreed, that a court
may in its discretion require, in any Proceeding for the enforcement of any right or remedy under
this Indenture, or in any Proceeding against the Indenture Trustee for any action taken, suffered
or omitted by it as Indenture Trustee, the filing by any party litigant in such Proceeding of an
undertaking to pay the costs of such Proceeding, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees, against any party litigant in such
Proceeding. This Section 5.15 will not apply to (a) any Proceeding instituted by the Indenture
Trustee, (b) any Proceeding instituted by any Noteholder or group of Noteholders holding more than
10% of the Note Balance of the Notes Outstanding (or in the case of a Proceeding for the
enforcement of any right or remedy under this Indenture that is instituted by the Controlling
Class, more than 10% of the Note Balance of the Controlling Class), or (c) any Proceeding
instituted by any Noteholder for the enforcement of the payment of principal of or interest on any



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Note on or after the respective due dates expressed in such Note and in this Indenture (or, in the
case of redemption, on or after the Redemption Date).



     Section 5.16. Waiver of Stay or Extension Laws. The Issuer covenants (to the extent
that it may lawfully do so) that it will not insist upon, or plead or in any manner whatsoever,
claim or take the benefit or advantage of, any stay or extension that may affect the covenants or
the performance of this Indenture, and the Issuer (to the extent that it may lawfully do so) waives
all benefit or advantage of any such law, and covenants that it will not hinder, delay or impede
the execution of any power in this Indenture granted to the Indenture Trustee, but will suffer and
permit the execution of every such power as though no such law had been enacted.



     Section 5.17. Performance and Enforcement of Certain Obligations.



     (a) At the Administrator’s expense, the Issuer will promptly take all such lawful action as
the Indenture Trustee may request to (i) compel the performance by (A) the Depositor and the
Servicer of their obligations to the Issuer under the Sale and Servicing Agreement, or (B) the
Depositor and Ford Credit of their obligations under the Purchase Agreement and (ii) exercise any
and all rights, remedies, powers, privileges and claims lawfully available to the Issuer under such
agreements to the extent and in the manner directed by the Indenture Trustee.



     (b) If an Event of Default has occurred and is continuing, the Indenture Trustee may, and at
the direction of the Noteholders of at least 66-2/3% of the Note Balance of the Controlling Class
will, exercise all rights, remedies, powers, privileges and claims of the Issuer against (i) the
Depositor or the Servicer under the Sale and Servicing Agreement, or (ii) the Depositor or Ford
Credit under the Purchase Agreement, including the right or power to take any action to compel
or secure performance or observance by such Persons of their obligations to the Issuer under
such agreements, and to give any consent, request, notice, direction, approval, extension or waiver
under such agreements, and any right of the Issuer to take such action will be suspended.



ARTICLE VI

THE INDENTURE TRUSTEE




     Section 6.1. Duties of Indenture Trustee.



     (a) If an Event of Default has occurred and is continuing, the Indenture Trustee will exercise
the rights and powers vested in it by this Indenture and use the same degree of care and skill in
their exercise as a prudent person would use under the circumstances in the conduct of such
person’s own affairs.



     (b) Except during the continuance of an Event of Default:




     (i) the Indenture Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture and no implied covenants or obligations are to be
read into this Indenture against the Indenture Trustee; and




     (ii) in the absence of bad faith or negligence on its part, the Indenture Trustee may
conclusively rely, as to the truth of the statements and the correctness of the opinions
furnished to it, upon any certificates or opinions furnished to it and, if required by this



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Indenture, conforming to the requirements of this Indenture; provided that the
Indenture Trustee will examine any such certificates and opinions to determine whether or
not they conform to the requirements of this Indenture.



     (c) The Indenture Trustee will not be relieved from liability for its own willful misconduct,
negligent action or negligent failure to act, except that:




     (i) this Section 6.1(c) does not limit the effect of Section 6.1(b);




     (ii) the Indenture Trustee will not be liable for any error of judgment made in good
faith by a Responsible Person unless it is proved that the Indenture Trustee was negligent
in ascertaining the pertinent facts; and




     (iii) the Indenture Trustee will not be liable for any action it takes or omits to take
in good faith in accordance with this Indenture or a direction received by it pursuant to
Sections 5.13 and 5.17(b).



     (d) The Indenture Trustee will not be liable for interest on any money received by it except
as the Indenture Trustee may agree in writing with the Issuer.



     (e) Money held in trust by the Indenture Trustee need not be segregated from other funds
except to the extent required by law, this Indenture or the Sale and Servicing Agreement.



     (f) Every provision of this Indenture relating to the conduct of, affecting the liability of
or affording protection to the Indenture Trustee is subject to this Section 6.1 and to the TIA.



     (g) The Indenture Trustee will not be charged with knowledge of any Default or any Event of
Default unless either (i) a Responsible Person of the Indenture Trustee has actual knowledge of
such Default or Event of Default or (ii) notice of such Default or Event of Default has been given
to the Indenture Trustee in accordance with this Indenture.



     (h) The rights, privileges, protections, immunities and benefits given to the Indenture
Trustee, including its right to be indemnified, are extended to, and will be enforceable by, the
Indenture Trustee in each of its capacities under this Indenture and the other Transaction
Documents.



     Section 6.2. Rights of Indenture Trustee.



     (a) The Indenture Trustee may conclusively rely and will be protected in acting or refraining
from acting upon any certificate, instrument, opinion, report, notice, request, direction, consent
or other document believed by it to be genuine and which appears on its face to be properly
executed and signed or presented by the proper Person. The Indenture Trustee need not investigate
any fact or matters stated in any such document.



     (b) Before the Indenture Trustee acts or refrains from acting, it may require an Officer’s
Certificate or an Opinion of Counsel. The Indenture Trustee will not be liable for any action it
takes or omits to take in good faith in reliance on an Officer’s Certificate or Opinion of Counsel.



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     (c) The Indenture Trustee may exercise any of its rights or powers under this Indenture or
perform any duties under this Indenture either directly or by or through agents or attorneys or a
custodian or nominee, and the Indenture Trustee will not be responsible for any misconduct or
negligence on the part of, or for the supervision of, any such agent, counsel, custodian or nominee
appointed with due care by it under this Indenture.



     (d) The Indenture Trustee will not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or powers if such action or omission
by the Indenture Trustee does not constitute negligence.



     (e) The Indenture Trustee may consult with counsel, and the advice or opinion of counsel with
respect to legal matters relating to this Indenture and the Notes will be full and complete
authorization and protection from liability with respect to any action taken or not taken by the
Indenture Trustee under this Indenture in good faith and in accordance with the advice or opinion
of such counsel.



     (f) The Indenture Trustee is under no obligation to (i) exercise any of the rights or powers
vested in it by this Indenture or to expend or risk its own funds or otherwise incur financial
liability in the performance of its duties under this Indenture if it has reasonable grounds to
believe that repayment of funds advanced by it or adequate indemnity satisfactory to
it against such risk or liability is not reasonably assured to it or (ii) honor the request or
direction of any of the Noteholders pursuant to this Indenture unless such Noteholders have offered
to the Indenture Trustee reasonable security or indemnity satisfactory to it from and against the
reasonable costs, expenses, disbursements, advances and liabilities that might be incurred by the
Indenture Trustee, or its agents, counsel, accountants and experts, in complying with such request
or direction.



     (g) The Indenture Trustee will not be responsible or liable for any failure or delay in the
performance of its obligations under this Indenture arising out of or caused by, directly or
indirectly, forces beyond its control, including strikes, work stoppages, acts of war or terrorism,
civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions,
loss or malfunctions of utilities, but the Indenture Trustee will use reasonable efforts which are
consistent with accepted practices in the banking industry to resume performance as soon as
practicable under the circumstances.



     (h) The Indenture Trustee will not be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including loss of profit) irrespective of
whether the Indenture Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action.



     Section 6.3. Individual Rights of Indenture Trustee. The Indenture Trustee, in its
individual or any other capacity, may become the owner or pledgee of Notes and may otherwise deal
with the Issuer or any of its Affiliates with the same rights it would have if it were not
Indenture Trustee. Any Note Paying Agent, Note Registrar, Authenticating Agent, co-registrar or
co-paying agent under this Indenture may do the same with like rights.



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     Section 6.4. Indenture Trustee’s Disclaimer. The Indenture Trustee (a) will not be
responsible for, and makes no representation or warranty as to, the validity or adequacy of this
Indenture or the Notes and (b) will not be accountable for the Issuer’s use of the proceeds from
the Notes, or responsible for any statement of the Issuer in this Indenture or in any document
issued in connection with the sale of the Notes or in the Notes other than the Indenture Trustee’s
certificate of authentication.



     Section 6.5. Notice of Defaults. Within 90 days of a Responsible Person of the
Indenture Trustee obtaining actual knowledge of, or receiving notice of, any Default under this
Indenture, the Indenture Trustee will mail as described in Section 313(c) of the TIA to each
Noteholder, notice of such Default, unless such Default has been cured or waived; provided
that (a) except in the case of a Default in the payment of principal of or interest on any Note,
the Indenture Trustee may withhold such notice if and so long as a committee of its Responsible
Persons in good faith determines that the withholding of such notice is in the interests of the
Noteholders and (b) in the case of any Default specified in Section 5.1(a)(iii), the Indenture
Trustee will not give notice to the Noteholders until at least 30 days after a Responsible Person
of the Indenture Trustee has obtained actual knowledge of, or has received notice of, such Default.



     Section 6.6. Reports by Indenture Trustee.



     (a) Upon delivery to the Indenture Trustee by the Servicer of the information prepared by the
Servicer pursuant to Section 3.4(a) of the Sale and Servicing Agreement to enable each Noteholder
to prepare its federal and State income tax returns, the Indenture Trustee will deliver the
relevant portions of such information to each Noteholder of record as of the most recent Record
Date (which delivery may be made by making such information available to the Noteholders through
the Indenture Trustee’s website, which initially is located at
https://gctinvestorreporting.bnymellon.com).



     (b) On each Payment Date, the Indenture Trustee will deliver the Monthly Investor Report to
each Noteholder of record as of the most recent Record Date (which delivery may be made by e-mail
to the e-mail addresses in the Note Register without need for confirmation of receipt or by making
such report available to the Noteholders through the Indenture Trustee’s website, which initially
is located at https://gctinvestorreporting.bnymellon.com).



     (c) If required by Regulation AB and requested by the Depositor or the Servicer, the Indenture
Trustee will deliver to the Depositor, the Owner Trustee, and the Servicer on or before March 1 of
each year, beginning in the year after the Closing Date, an Officer’s Certificate, dated as of
December 31 of the preceding calendar year, signed by a Responsible Person of the Indenture Trustee
(i) to the effect that (A) a review of the Indenture Trustee’s activities during the preceding
calendar year (or, in the case of the first certificate, the portion of the preceding calendar year
since the Closing Date) and of its performance under this Indenture has been made under such
Responsible Person’s supervision and (B) to such Responsible Person’s knowledge, based on such
review, the Indenture Trustee has fulfilled in all material respects all of its obligations under
this Indenture throughout such calendar year (or, in the case of the first certificate, the portion
of the preceding calendar year since the Closing Date), or, if there has been a failure to fulfill
any such obligation in any material respect, specifically identifying each



31









 







such failure known to such Responsible Person and the nature and status of such failure and (ii) certifying to matters
related to the Indenture Trustee as required under Form 10-K under the Exchange Act. If the Issuer
is not required to file periodic reports under the Exchange Act or otherwise required by law to
file an Officer’s Certificate of the Indenture Trustee as to compliance, such Officer’s Certificate
may be delivered on or before April 1 of each calendar year.



     (d) If required under Regulation AB, the Indenture Trustee will:




     (i) deliver to the Depositor, the Owner Trustee and the Servicer, a report, dated as of
December 31 of the preceding calendar year, on its assessment of compliance with the minimum
servicing criteria described in Items 1122(d)(2)(i), (2)(ii), (2)(iv), (2)(v), (3)(ii) (with
respect to remittances only) and (3)(iv) of Regulation AB (the “Applicable Servicing
Criteria”) during the preceding calendar year, including disclosure of any material
instance of non-compliance identified by the Indenture Trustee, as required by Rule 13a-18
and 15d-18 of the Exchange Act and Item 1122 of Regulation AB under the Securities Act. Such report on assessment will be addressed to the board
of directors of the Servicer and to the Depositor and the Owner Trustee; and




     (ii) cause a firm of registered public accountants that is qualified and independent
within the meaning of Rule 2-01 of Regulation S-X under the Securities Act to deliver to the
Depositor, Owner Trustee and the Servicer an attestation report that satisfies the
requirements of Rule 13a-18 or Rule 15d-18 under the Exchange Act, as applicable, on the
assessment of compliance with the Applicable Servicing Criteria with respect to the prior
calendar year. Such attestation report will 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. The firm may
render other services to the Indenture Trustee, but the firm must indicate in each
attestation report that it is qualified and independent within the meaning of Rule 2-01 of
Regulation S-X under the Securities Act.



     The reports referred to in this Section 6.6(d) will be delivered on before March 1 of each
year, beginning in the year after the Closing Date, in a format suitable for filing with the
Securities and Exchange Commission on EDGAR, unless the Issuer is not required to file periodic
reports under the Exchange Act or any other law, in which case the reports will be delivered on or
before April 1 of each calendar year, beginning in the year after the Closing Date.



     (e) Each of the parties agrees that (i) the obligations of the parties under Sections 6.6(c)
and (d) will be interpreted in such a manner as to accomplish compliance with Regulation AB and
(ii) the parties’ obligations under Sections 6.6(c) and (d) will be deemed to be supplemented and
modified as necessary to be consistent with any such amendments, interpretive guidance provided by
the Securities and Exchange Commission or its staff or established market practice among
participants in the asset-backed securities markets in respect of the requirements of Regulation
AB, and the parties will comply with reasonable requests made by the Depositor, the Servicer or the
Indenture Trustee in good faith for delivery of additional or different information required to
comply with the provisions of Regulation AB.



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     If the parties to this Indenture determine to further clarify or amend Sections 6.6(c) or (d),
this Indenture may be amended to reflect the new agreement between the parties covering matters in
Sections 6.6(c) or (d) pursuant to Section 9.1(a), which amendment will not require the delivery of
any Opinions of Counsel or satisfaction of the Rating Agency Condition.



     Section 6.7. Compensation and Indemnity.



     (a) The Issuer will, or will cause the Administrator to, pay the Indenture Trustee as
compensation for the Indenture Trustee’s services under this Indenture such fees as have been
separately agreed upon on the date of this Indenture between the Issuer and the Indenture Trustee.
The Indenture Trustee’s compensation will not be limited by any law on compensation of a trustee of
an express trust. The Issuer will reimburse the Indenture Trustee for all reasonable out-of-pocket
expenses incurred or made by the Indenture Trustee, including costs of collection, and the
reasonable compensation, expenses and disbursements of the Indenture Trustee’s agents,
counsel, accountants and experts, but excluding any expenses incurred by the Indenture Trustee
through the Indenture Trustee’s willful misconduct, bad faith or negligence (except for errors in
judgment).



     (b) The Issuer will, or will cause the Administrator to, indemnify, defend and hold harmless
the Indenture Trustee, and its respective officers, directors, employees and agents, from and
against any and all costs, expenses, losses, damages, claims and liabilities (including the
reasonable compensation, expenses and disbursements of the Indenture Trustee’s agents, counsel,
accountants and experts) incurred by it in connection with the administration of and the
performance of its duties under this Indenture, including the costs and expenses of defending
itself against any loss, damage, claim or liability incurred by it in connection with the exercise
or performance of any of its powers or duties under this Indenture, but excluding any cost,
expense, loss, damage, claim or liability (i) incurred by the Indenture Trustee through the
Indenture Trustee’s willful misconduct, bad faith or negligence (except for errors in judgment) or
(ii) arising out of the Indenture Trustee’s breach of any of its representations or warranties set
forth in this Indenture.



     (c) Promptly upon receipt by the Indenture Trustee, or any of its officers, directors,
employees and agents (each, an “Indemnified Person”), of notice of the commencement of any
Proceeding against any such Indemnified Person, such Indemnified Person will, if a claim in respect
of such Proceeding is to be made under Section 6.7(b), notify the Issuer and the Administrator of
the commencement of such Proceeding. Failure by the Indenture Trustee to so notify the Issuer and
the Administrator will not relieve the Issuer or the Administrator of its obligations under this
Section 6.7; provided that neither the Issuer nor the Administrator has been materially
prejudiced by such failure to so notify and notice is given within 180 days of a Responsible Person
of the Indenture Trustee learning of such Proceeding. The Issuer, or, if Issuer so causes, the
Administrator, may participate in and assume the defense and settlement of any such Proceeding at
its expense, and no settlement of such Proceeding may be made without the approval of the Issuer or
the Administrator, as applicable, and such Indemnified Person, which approvals will not be
unreasonably withheld, delayed or conditioned. After notice from the Issuer or the Administrator,
as applicable, to the Indemnified Person of the intention of the Issuer or the Administrator,
as applicable, to assume the defense of such Proceeding with counsel reasonably satisfactory to the
Indemnified Person, and so long as the Issuer or the Administrator,



33









 







as applicable, so assumes the defense of such Proceeding in a manner reasonably satisfactory to the Indemnified Person, neither
the Issuer nor the Administrator will be liable for any legal expenses of counsel to the
Indemnified Person unless there is a conflict between the interests of the Issuer or the
Administrator, as applicable, on one hand, and an Indemnified Person, on the other hand, in which
case the Issuer or the Administrator, will pay for the separate counsel to the Indemnified Person.



     (d) The obligations of the Issuer and the Administrator to the Indenture Trustee pursuant to
this Section 6.7 will survive the resignation or removal of the Indenture Trustee and the discharge
of this Indenture. Expenses incurred by the Indenture Trustee after the occurrence of a Default
specified in Section 5.1(a)(iv) are intended to constitute expenses of administration under the
Bankruptcy Code or any other applicable federal or State bankruptcy, insolvency or similar law.



     Section 6.8. Replacement of Indenture Trustee.



     (a) No resignation or removal of the Indenture Trustee, and no appointment of a successor
Indenture Trustee, will become effective until the acceptance of appointment by the successor
Indenture Trustee pursuant to this Section 6.8. Subject to the preceding sentence, the Indenture
Trustee may resign by notifying the Issuer. The Noteholders of a majority of the Note Balance of
the Controlling Class may remove the Indenture Trustee without cause by notifying the Indenture
Trustee and the Issuer and may appoint a successor Indenture Trustee.



     (b) The Issuer must remove the Indenture Trustee if:




     (i) the Indenture Trustee fails to comply with Section 6.11;




     (ii) an Insolvency Event occurs with respect to the Indenture Trustee; or




     (iii) the Indenture Trustee becomes legally unable to act or otherwise incapable of
acting as Indenture Trustee.



     (c) If the Indenture Trustee resigns or is removed or if a vacancy exists in the office of
Indenture Trustee for any reason, the Issuer must appoint a successor Indenture Trustee promptly.



     (d) Any successor Indenture Trustee will deliver a written acceptance of its appointment to
the retiring Indenture Trustee, the Issuer and the Administrator. Upon delivery of such
acceptance, the resignation or removal of the retiring Indenture Trustee will become effective, and
the successor Indenture Trustee will have all the rights, powers, duties and obligations of the
Indenture Trustee under this Indenture. The Issuer will continue to pay all amounts owed to the
retiring Indenture Trustee in accordance with Sections 6.7 and 8.2 following the retiring Indenture
Trustee’s resignation or removal until all such amounts are paid. The successor Indenture Trustee
will deliver a notice of its succession to the Secured Parties. The retiring Indenture Trustee
will promptly transfer all property held by it as Indenture Trustee to the successor Indenture
Trustee.



34









 





     (e) If a successor Indenture Trustee does not take office within 60 days after the retiring
Indenture Trustee tenders its resignation or is removed, the retiring Indenture Trustee, the Issuer
or the Noteholders of a majority of the Note Balance of the Controlling Class may petition any
court of competent jurisdiction for the appointment of a successor Indenture Trustee.



     (f) Notwithstanding the replacement of the retiring Indenture Trustee pursuant to this Section
6.8, any obligations of the Issuer and the Administrator owing to the retiring Indenture Trustee
under Section 6.7 will continue for the benefit of the retiring Indenture Trustee.



     Section 6.9. Successor Indenture Trustee by Merger.



     (a) If the Indenture Trustee consolidates with, merges or converts into, or transfers all or
substantially all of its corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation or banking association will be the
successor Indenture Trustee so long as such corporation or banking association is otherwise
qualified and eligible under Section 6.11. The Indenture Trustee will promptly notify the Servicer
and the Issuer (who will notify the Rating Agencies) of any such transaction.



     (b) If, at the time any such successor by merger, conversion or consolidation to the Indenture
Trustee succeeds to the trusts created by this Indenture, any of the Notes have been authenticated
but not delivered, such successor may adopt the certificate of authentication of any predecessor
Indenture Trustee and deliver such Notes so authenticated. If at such time any of the Notes have
not been authenticated, any successor to the Indenture Trustee may authenticate such Notes either
in the name of any predecessor Indenture Trustee or in the name of such successor Indenture
Trustee. In all such cases, such certificates will have the same force and effect provided for
anywhere in the Notes or in this Indenture as the certificate of the predecessor Indenture Trustee.



     Section 6.10. Appointment of Separate Indenture Trustee or Co-Indenture Trustee.



     (a) For the purpose of meeting any legal requirement of any jurisdiction in which any part of
the Collateral may at the time be located, after delivering notice to the Issuer and the Servicer,
the Indenture Trustee may appoint one or more Persons to act as a separate trustee or separate
trustees, or co-trustee or co-trustees, of all or any part of the Collateral, and to vest in such
Persons, in such capacity and for the benefit of the Secured Parties, such title to all or any part
of the Collateral, and, subject to this Section 6.10, such rights, powers, duties and obligations
as the Indenture Trustee may consider necessary or desirable. No separate trustee or co-trustee
will be required to meet the terms of eligibility as a successor trustee under Section 6.11 and no
notice to the Secured Parties of the appointment of any separate trustee or co-trustee will be
required under Section 6.8.



     (b) Every separate trustee and co-trustee will, to the extent permitted by law, be appointed
and act subject to the following:




     (i) all rights, powers, duties and obligations conferred or imposed upon the Indenture
Trustee will be conferred or imposed upon and exercised or performed by the Indenture
Trustee, or the Indenture Trustee and such separate trustee or co-trustee jointly (it being
understood that such separate trustee or co-trustee will not be authorized to act



35









 







separately without the Indenture Trustee joining in such act), except to the extent that under any law
of any jurisdiction in which any particular act or acts are to be performed the Indenture
Trustee will be incompetent or unqualified to perform such act or acts, in which event such
rights, powers, duties and obligations (including the holding of title to all or any portion
of the Collateral in any such jurisdiction) will be exercised and performed singly by such
separate trustee or co-trustee, but solely at the direction of the Indenture Trustee;




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




     (iii) the Indenture Trustee may accept the resignation of or remove any separate
trustee or co-trustee.



     (c) Any notice, request or other writing given to the Indenture Trustee will be deemed to have
been given to each appointed separate trustee and co-trustee, as effectively as if given to each of
them. Every instrument appointing any separate trustee or co-trustee will refer to this Indenture
and the conditions of this Section 6.10. Each separate trustee and co-trustee, upon its acceptance
of the trusts conferred, will be vested with the estates or property specified in its instrument of
appointment, either jointly with the Indenture Trustee or separately, as may be provided in such
instrument of appointment, subject to this Indenture. Every such instrument will be filed with the
Indenture Trustee.



     (d) Any separate trustee or co-trustee may appoint the Indenture Trustee as its agent or
attorney-in-fact with power and authority, to the extent not prohibited by law, to do any lawful
act under or in respect of this Indenture on its behalf and in its name. If any separate trustee
or co-trustee dies, becomes incapable of acting, resigns or is removed, all of its estates,
properties, rights, remedies and trusts will vest in and be exercised by the Indenture Trustee, to
the extent permitted by law, without the appointment of a new or successor trustee.



     Section 6.11. Eligibility; Disqualification.



     (a) The Indenture Trustee must satisfy the requirements of Section 310(a) of the TIA and must
comply with Section 310(b) of the TIA. The Indenture Trustee or its parent must have a combined
capital and surplus of at least $50,000,000 as set forth in its most recent annual published report
of condition and must have a long-term debt rating of investment grade by each of the Rating
Agencies or must otherwise be acceptable to each of the Rating Agencies. Within ten days after the
Indenture Trustee fails to satisfy any of the requirements set forth in this Section 6.11(a) or
ceases to be a Qualified Institution, the Indenture Trustee will notify the Issuer and the Servicer
of such failure.



     (b) Within 90 days after the occurrence of an Event of Default that has not been cured or
waived, unless authorized by the Securities and Exchange Commission, the Indenture Trustee will
resign with respect to the Class A Notes, the Class B Notes, the Class C Notes and/or the Class D
Notes in accordance with Section 6.8, and the Issuer will appoint a successor Indenture Trustee for
any or all of such Class A Notes, Class B Notes, Class C Notes and/or Class D Notes, as applicable,
so that there will be separate Indenture Trustees for the Class A Notes, Class B



36









 







Notes, the Class C Notes and the Class D Notes. If the Indenture Trustee fails to comply with the terms of the
preceding sentence, the Indenture Trustee must comply with TIA Section 310(b)(ii) and (iii).



     (c) If a successor Indenture Trustee is appointed with respect to any of the Class A Notes,
Class B Notes, Class C Notes or Class D Notes pursuant to this Section 6.11, the Issuer, the retiring Indenture Trustee and the successor Indenture Trustee will execute an indenture
supplemental to this Indenture. Such supplemental indenture will contain:




     (i) provisions by which the successor Indenture Trustee accepts its appointment;




     (ii) provisions necessary or desirable to transfer and confirm to, and to vest in, the
successor Indenture Trustee all the rights, powers, duties and obligations of the retiring
Indenture Trustee with respect to the Notes to which the appointment of such successor
Indenture Trustee relates;




     (iii) if the retiring Indenture Trustee is not retiring with respect to all of the
Notes, provisions necessary or desirable to confirm that all the rights, powers, duties and
obligations of the retiring Indenture Trustee with respect to the Notes as to which the
retiring Indenture Trustee is not retiring continue to be vested in the Indenture Trustee;
and




     (iv) provisions necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Indenture Trustee.



     Nothing in this Indenture or in such supplemental indenture will constitute such Indenture
Trustees co-trustees of the same trust and each such Indenture Trustee will be a trustee of a trust
or trusts under this Indenture separate and apart from any trust or trusts under this Indenture
administered by any other Indenture Trustee. The indenture supplement will become effective upon
the removal of the retiring Indenture Trustee.



     Section 6.12. Preferential Collection of Claims Against Issuer. The Indenture Trustee
will comply with Section 311(a) of the TIA, excluding any creditor relationship listed in Section
311(b) of the TIA. An Indenture Trustee who has resigned or been removed will be subject to
Section 311(c) of the TIA.



     Section 6.13. Audits of the Indenture Trustee. The Indenture Trustee agrees that,
with reasonable prior notice, it will permit any authorized representative of the Issuer, the
Servicer or the Administrator, during the Indenture Trustee’s normal business hours, to examine and
audit the books of account, records, reports and other documents and materials of the Indenture
Trustee relating to (a) the performance of the Indenture Trustee’s obligations under this
Indenture, (b) any payments of fees and expenses of the Indenture Trustee in connection with such
performance and (c) any claim made by the Indenture Trustee under this Indenture. In addition, the
Indenture Trustee will permit such representatives to make copies and extracts of any such books
and records and to discuss the same with the Indenture Trustee’s officers and employees. Each of
the Issuer, the Servicer and the Administrator will, and will cause its authorized representatives
to, hold in confidence all such information except to the extent



37









 







disclosure may be required by law (and all reasonable applications for confidential treatment are unavailing) and except to the
extent that the Issuer, the Servicer or the Administrator, as the case may be, may reasonably
determine that such disclosure is consistent with its obligations under this Indenture. The
Indenture Trustee will maintain all such pertinent books, records, reports and other documents and materials for a period of two
years after the termination of its obligations under this Indenture.



     Section 6.14. Representations and Warranties of the Indenture Trustee. The Indenture
Trustee represents and warrants to the Issuer as of the Closing Date:



     (a) Organization and Qualification. The Indenture Trustee is a banking corporation
duly organized, validly existing and in good standing under the laws of the State of New York. The
Indenture Trustee is qualified as a foreign banking corporation in good standing and has obtained
all necessary licenses and approvals in all jurisdictions in which the ownership or lease of its
properties or the conduct of its activities requires such qualification, license or approval,
unless the failure to obtain such qualifications, licenses or approvals would not reasonably be
expected to have a material adverse effect on the Indenture Trustee’s ability to perform its
obligations under this Indenture or the other Transaction Documents to which it is a party.



     (b) Power, Authorization and Enforceability. The Indenture Trustee has the power and
authority to execute deliver and perform the terms of this Indenture. The Indenture Trustee has
authorized the execution, delivery and performance of the terms of this Indenture. This Indenture
is the legal, valid and binding obligation of the Indenture Trustee enforceable against the
Indenture Trustee, except as may be limited by insolvency, bankruptcy, reorganization or other laws
relating to or affecting the enforcement of creditors’ rights or by general equitable principles.



     (c) No Conflicts and No Violation. The execution and delivery by the Indenture
Trustee of this Indenture, the consummation by the Indenture Trustee of the transactions
contemplated by this Indenture and the compliance by the Indenture Trustee with this Indenture will
not (i) violate any federal or New York State law, governmental rule or regulation governing the
banking or trust powers of the Indenture Trustee or any judgment or order binding on it or (ii)
conflict with, result in a breach of, or constitute (with or without notice or lapse of time or
both) a default under its charter documents or by-laws or any indenture, mortgage, deed of trust,
loan agreement, guarantee or similar agreement or instrument under which the Indenture Trustee is a
debtor or guarantor or (iii) violate any law or, to the Indenture Trustee’s knowledge, any order,
rule, or regulation applicable to the Indenture Trustee of any court or of any federal or State
regulatory body, administrative agency or other governmental instrumentality having jurisdiction
over the Indenture Trustee or its properties, in each case which conflict, breach, default, Lien,
or violation would reasonably be expected to have a material adverse effect on the Indenture
Trustee’s ability to perform its obligations under this Indenture.



     (d) No Proceedings. To the Indenture Trustee’s knowledge, there are no proceedings or
investigations pending or overtly threatened in writing, before any court, regulatory body,
administrative agency, or other governmental instrumentality having jurisdiction over the Indenture
Trustee or its properties: (i) asserting the invalidity of any of this Indenture or the Sale and
Servicing Agreement, (ii) seeking to prevent the issuance of the Notes or the consummation



38









 







of any of the transactions contemplated by any of the Transaction Documents or (iii) seeking any
determination or ruling that would reasonably be expected to have a material adverse effect on
the Indenture Trustee’s ability to perform its obligations under, or the validity or
enforceability of, this Indenture.



     (e) Eligibility. The Indenture Trustee satisfies the requirements of Section 310(a)
of the TIA and is a Qualified Institution. The Indenture Trustee or its parent has a combined
capital and surplus of at least $50,000,000 as set forth in its most recent annual published report
of condition.



     (f) Information Provided by the Indenture Trustee. The information provided by the
Indenture Trustee in any certificate delivered by a Responsible Person of the Indenture Trustee is
true and correct in all material respects.



     Section 6.15. Duty to Update Disclosure. The Indenture Trustee will notify and
provide information, and certify such information in an Officer’s Certificate, to the Depositor
upon any event or condition relating to the Indenture Trustee or actions taken by the Indenture
Trustee that (a) (i) is required to be disclosed by the Depositor under Item 2 (the institution of,
material developments in, or termination of legal proceedings against The Bank of New York Mellon
that are material to Noteholders) of Form 10-D under the Exchange Act within five days of such
occurrence or (ii) the Depositor reasonably requests of the Indenture Trustee that the Depositor,
in good faith, believes is necessary to comply with Regulation AB within five days of such request
or (b) (i) is required to be disclosed under Item 5 (submission of matters to a vote of
Noteholders) of Form 10-D under the Exchange Act within five days of a Responsible Person of the
Indenture Trustee becoming aware of such submission, (ii) is required to be disclosed under Item
6.02 (resignation, removal, replacement or substitution of The Bank of New York Mellon as Indenture
Trustee) or Item 6.04 (failure to make a distribution when required) of Form 8-K under the Exchange
Act within two days of a Responsible Person of the Indenture Trustee becoming aware of such
occurrence or (iii) causes the information provided by the Indenture Trustee in any certificate
delivered by a Responsible Person of the Indenture Trustee to be untrue or incorrect in any
material respect or is necessary to make the statements provided by the Indenture Trustee in light
of the circumstances in which they were made not misleading within five days of a Responsible
Person of the Indenture Trustee becoming aware thereof.



     Section 6.16. Covenants for Reporting of Repurchase Demands due to Breaches of
Representations and Warranties. The Indenture Trustee will (i) notify the Sponsor, the
Depositor and the Servicer, as soon as practicable and in any event within five Business Days, of
all demands or requests communicated (in writing or orally) to the Indenture Trustee for the
repurchase of any Receivable pursuant to Section 3.3 of the Purchase Agreement or Section 2.4 of
the Sale and Servicing Agreement and (ii) promptly upon request by the Sponsor, the Depositor or
the Servicer, provide to them any other information reasonably requested to facilitate compliance
by them with Rule 15Ga-1 under the Exchange Act, and Items 1104(e) and 1121(c) of Regulation AB.
In no event will the Indenture Trustee or the Issuer have any responsibility or liability in
connection with any filing required to be made by a securitizer under the Exchange Act or
Regulation AB.



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ARTICLE VII

NOTEHOLDERS’ LISTS AND REPORTS




     Section 7.1. Names and Addresses of Noteholders. If the Indenture Trustee is not the
Note Registrar, the Issuer will furnish a list of the names and addresses of the Noteholders of any
Definitive Notes to the Indenture Trustee (a) not more than five days after each Record Date, as of
such Record Date and (b) not more than 30 days after receipt by the Issuer of a request from the
Indenture Trustee, as of a date not more than ten days before the time such list is furnished. If
the Indenture Trustee is the Note Registrar, the Indenture Trustee, upon the request of the Owner
Trustee, will furnish within ten days to the Owner Trustee a list of Noteholders of all Book-Entry
Notes as of the date specified by the Owner Trustee.



     Section 7.2. Preservation of Information; Communications to Noteholders.



     (a) The Indenture Trustee will preserve, in as current a form as is reasonably practicable,
the names and addresses of the Noteholders contained in the most recent list furnished to the
Indenture Trustee pursuant to Section 7.1 and the names and addresses of Noteholders received by
the Indenture Trustee in its capacity as Note Registrar. The Indenture Trustee may destroy any
list furnished to it pursuant to Section 7.1 upon receipt of a new list.



     (b) Noteholders may communicate pursuant to Section 312(b) of the TIA with other Noteholders
with respect to their rights under this Indenture or under the Notes.



     (c) The Issuer, the Indenture Trustee and the Note Registrar will have the protection of
Section 312(c) of the TIA.



     Section 7.3. Reports by Issuer.



     (a) The Issuer will:




     (i) file with the Indenture Trustee, within fifteen days after the Issuer is required
to file the same with the Securities and Exchange Commission, copies of the annual reports
and of the information, documents and other reports (or copies of such portions of any of
the foregoing as the Securities and Exchange Commission may prescribe) that the Issuer is
required to file with the Securities and Exchange Commission pursuant to Section 13 or 15(d)
of the Exchange Act;




     (ii) file with the Indenture Trustee and the Securities and Exchange Commission such
additional information, documents and reports with respect to compliance by the Issuer with
the conditions and covenants of this Indenture, as may be prescribed by the Securities and
Exchange Commission; and




     (iii) supply to the Indenture Trustee such information, documents and reports (or
summaries) required to be filed by the Issuer pursuant to Section 7.3(a)(i) and (ii) as may
be required by rules and regulations prescribed by the Securities and Exchange Commission.



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     (b) The Indenture Trustee will mail as described in TIA Section 313(c) to all Noteholders the
information, documents and reports (or summaries) supplied to the Indenture Trustee pursuant to
Section 7.3(a).



     (c) Unless the Issuer otherwise determines, the fiscal year of the Issuer will be the calendar
year.



     Section 7.4. Reports by Indenture Trustee.



     (a) Within 90 days after each April 15, beginning in the year after the Closing Date, the
Indenture Trustee will prepare and mail to each Noteholder a report dated as of such April 15 that
complies with Section 313(a) of the TIA, but only if such report is required pursuant Section
313(a) of the TIA. The Indenture Trustee will also prepare and mail to Noteholders any report
required pursuant to Section 313(b) of the TIA. Any report mailed to the Noteholders pursuant to
this Section 7.4(a) will be mailed in compliance with Section 313(c) of the TIA.



     (b) The Indenture Trustee will file with the Securities and Exchange Commission and any stock
exchange on which the Notes are listed a copy of each report delivered pursuant to Section 7.4(a)
at the time of its mailing to Noteholders. The Issuer will notify the Indenture Trustee if and
when the Notes are listed on any stock exchange.



ARTICLE VIII

ACCOUNTS, DISBURSEMENTS AND RELEASES




     Section 8.1. Collection of Money. Except as otherwise provided in this Indenture, the
Indenture Trustee may demand payment or delivery of, and will receive and collect, directly and
without intervention or assistance of any fiscal agent or other intermediary, all money and other
property payable to or receivable by the Indenture Trustee pursuant to this Indenture and the Sale
and Servicing Agreement. The Indenture Trustee will apply all such money received by it as
provided in this Indenture and the Sale and Servicing Agreement.



     Section 8.2. Trust Accounts; Distributions and Disbursements.



     (a) On or before the Closing Date, the Indenture Trustee will establish, and on and after the
Closing Date will maintain, the Bank Accounts as provided in Section 4.1 of the Sale and Servicing
Agreement.



     (b) On or before each Payment Date, the Indenture Trustee will withdraw all amounts required
to be withdrawn from the Reserve Account and deposit them into the Collection Account pursuant to
Section 4.4 of the Sale and Servicing Agreement.



     (c) As long as the Indenture Trustee has received the Monthly Investor Report by the related
Determination Date, the Indenture Trustee (based on the information contained in the most recent
Monthly Investor Report) will make the following withdrawals from the Collection Account and make
deposits and payments on each Payment Date, to the extent of Available Funds in the Collection
Account with respect to such Payment Date, in the following order of priority (pro rata to the
Persons within each priority level based on the amounts due except as otherwise specified):



41









 






     (i) first, to the payment of all amounts, including indemnities, then due to the
Indenture Trustee and the Owner Trustee and any expenses of the Issuer incurred in
accordance with the Transaction Documents, in each case, to the extent not paid by the
Depositor or Administrator, up to a maximum of $150,000 per year;




     (ii) second, to the Servicer, the Servicing Fee and all unpaid Servicing Fees from
preceding Collection Periods;




     (iii) third, to the Noteholders of Class A Notes, the aggregate Accrued Note Interest
for the Class A Notes, pro rata based on the Note Balances of the Class A Notes as of the
preceding Payment Date;




     (iv) fourth, to the Principal Payment Account, the First Priority Principal Payment;




     (v) fifth, to the Noteholders of Class B Notes, the Accrued Note Interest for the Class
B Notes;




     (vi) sixth, to the Principal Payment Account, the Second Priority Principal Payment;




     (vii) seventh, to the Noteholders of Class C Notes, the Accrued Note Interest for the
Class C Notes;




     (viii) eighth, to the Principal Payment Account, the Third Priority Principal Payment;




     (ix) ninth, to the Noteholders of Class D Notes, the Accrued Note Interest for the
Class D Notes;




     (x) tenth, to the Reserve Account, the amount required to reinstate the amount in the
Reserve Account up to the Specified Reserve Balance, unless such Payment Date is on or after
the Final Scheduled Payment Date for the Class D Notes;




     (xi) eleventh, to the Principal Payment Account, the Regular Principal Payment;




     (xii) twelfth, to the payment of all amounts due to the Indenture Trustee and the Owner
Trustee and any expenses of the Issuer, in each case, to the extent not paid by the
Depositor or Administrator or pursuant to Section 8.2(c)(i) on such Payment Date; and




     (xiii) thirteenth, to the Trust Distribution Account (or if the Trust Distribution
Account has not been established, to the holder of the Residual Interest), any funds
remaining in the Collection Account with respect to the Collection Period preceding such
Payment Date.



     (d) On each Payment Date, the Indenture Trustee (based on the information contained in the
most recent Monthly Investor Report) will withdraw the funds in the Principal Payment



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Account and make deposits and payments in the following order of priority, in each case, applied ratably in
accordance with the Note Balance of the Notes of such Class:




     (i) first, to the Noteholders of Class A-1 Notes in payment of principal until the Note
Balance of the Class A-1 Notes has been reduced to zero;




     (ii) second, to the Noteholders of Class A-2 Notes in payment of principal until the
Note Balance of the Class A-2 Notes has been reduced to zero;




     (iii) third, to the Noteholders of Class A-3 Notes in payment of principal until the
Note Balance of the Class A-3 Notes has been reduced to zero;




     (iv) fourth, to the Noteholders of Class A-4 Notes in payment of principal until the
Note Balance of the Class A-4 Notes has been reduced to zero;




     (v) fifth, to the Noteholders of Class B Notes in payment of principal until the Note
Balance of the Class B Notes has been reduced to zero;




     (vi) sixth, to the Noteholders of Class C Notes in payment of principal until the Note
Balance of the Class C Notes has been reduced to zero;




     (vii) seventh, to the Noteholders of Class D Notes in payment of principal until the
Note Balance of the Class D Notes has been reduced to zero; and




     (viii) eighth, to the Trust Distribution Account (or if the Trust Distribution Account
has not been established, to the holder of the Residual Interest), any funds remaining in
the Principal Payment Account.



     (e) Notwithstanding anything in this Indenture to the contrary, if the Notes are accelerated
following an Event of Default, then on each Payment Date following the Collection Period during
which such acceleration occurs, the Indenture Trustee (based on the information contained in the
most recent Monthly Investor Report) will make the following withdrawals from the Bank Accounts and
make payments and distributions on each Payment Date, to the extent of funds in the Bank Accounts
with respect to the Collection Period preceding such Payment Date, in the following order of
priority (pro rata to the Persons within each priority level based on the amounts due except as
otherwise specified):




     (i) first, to the payment of all amounts due to the Indenture Trustee, the Owner
Trustee and any expenses of the Issuer incurred in accordance with the Transaction
Documents;




     (ii) second, to the Servicer for due and unpaid Servicing Fees;




     (iii) third, to the Noteholders of Class A Notes, the aggregate Accrued Note Interest
for the Class A Notes, pro rata based on the Note Balances of the Class A Notes as of the
preceding Payment Date;



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     (iv) fourth, to the Noteholders of Class A-1 Notes in payment of principal until the
Note Balance of the Class A-1 Notes is reduced to zero;




     (v) fifth, to the Noteholders of Class A-2 Notes in payment of principal until the Note
Balance of the Class A-2 Notes is reduced to zero;




     (vi) sixth, to the Noteholders of Class A-3 Notes in payment of principal until the
Note Balance of the Class A-3 Notes is reduced to zero;




     (vii) seventh, to the Noteholders of Class A-4 Notes in payment of principal until the
Note Balance of the Class A-4 Notes is reduced to zero;




     (viii) eighth, to the Noteholders of Class B Notes, the Accrued Note Interest for the
Class B Notes;




     (ix) ninth, to the Noteholders of Class B Notes in payment of principal until the Note
Balance of the Class B Notes is reduced to zero;




     (x) tenth, to the Noteholders of Class C Notes, the Accrued Note Interest for the Class
C Notes;




     (xi) eleventh, to the Noteholders of Class C Notes in payment of principal until the
Note Balance of the Class C Notes is reduced to zero;




     (xii) twelfth, to the Noteholders of Class D Notes, the Accrued Note Interest for the
Class D Notes;




     (xiii) thirteenth, to the Noteholders of Class D Notes in payment of principal until
the Note Balance of the Class D Notes is reduced to zero; and




     (xiv) fourteenth, to the Trust Distribution Account (or if the Trust Distribution
Account has not been established, to the holder of the Residual Interest), any remaining
money or property.



     (f) Each of (i) the subordination of interest payments to the Noteholders of the Class B Notes
to the payment of any First Priority Principal Payment to the Noteholders of the Class A Notes,
(ii) the subordination of interest payments to the Noteholders of the Class C Notes to the payment
of any Second Priority Principal Payment to the Noteholders of the Class A Notes and
the Class B Notes and (iii) the subordination of interest payments to the Noteholders of the
Class D Notes to the payment of any Third Priority Principal Payment to the Noteholders of the
Class A Notes, the Class B Notes and the Class C Notes pursuant to Section 8.2(c) is deemed a
subordination agreement within the meaning of Section 510(a) of the Bankruptcy Code.



     Section 8.3. General Provisions Regarding Bank Accounts.



     (a) The Indenture Trustee will not be liable by reason of any insufficiency in any of the Bank
Accounts resulting from any loss on any Permitted Investment included in the Bank Accounts, except
for losses attributable to the Indenture Trustee’s failure to make payments on




44











 




such Permitted Investments issued by the Indenture Trustee, in its commercial capacity as
principal obligor and not as trustee. In addition, the Indenture Trustee has no duty to monitor
the activities of any Qualified Institution (unless such Qualified Institution is also the
Indenture Trustee) and will not be liable for the actions or inactions of any Qualified Institution
(unless such Qualified Institution is also the Indenture Trustee).




     (b) A Responsible Person of the Indenture Trustee will provide notice to the Qualified
Institution maintaining the Reserve Account and the Collection Account (if not the Indenture
Trustee) if an Event of Default has occurred and is continuing with respect to the Notes.



     Section 8.4. Release of Collateral.



     (a) The Indenture Trustee will release property from the Lien of this Indenture only upon
receipt of an Issuer Request accompanied by an Officer’s Certificate and an Opinion of Counsel
meeting the requirements of Section 11.1.



     (b) To facilitate the Servicer’s servicing of the Receivables pursuant to the Sale and
Servicing Agreement, the Indenture Trustee will be deemed to release, and does release, and each
Noteholder or Note Owner by its acceptance of a Note or a beneficial interest in a Note
respectively acknowledges that the Indenture Trustee will release any and all Liens and other
rights and interests it possesses or may possess from time to time, without further action of the
parties, in, to and under:




     (i) each Receivable and all proceeds of such Receivable, effective on the date on which
a Purchase Amount with respect to such Receivable is deposited into the Collection Account;




     (ii) each Receivable and the proceeds of such Receivable and the rights of Ford Credit
(individually or as Servicer) under any contract or agreement for the sale of such
Receivable in accordance with Section 3.3 of the Sale and Servicing Agreement, effective
immediately prior to the date on which such contract or agreement arises (provided
that the Servicer will receive and apply all proceeds of such sale in accordance with
Section 3.3 of the Sale and Servicing Agreement); and




     (iii) each Receivable and the proceeds of such Receivable, effective upon the date (if
any) on which such Receivable became a Liquidated Receivable and the proceeds of a sale by
auction or other disposition of the related Financed Vehicle have been received and applied.



     (c) Upon request by the Servicer or the Issuer, the Indenture Trustee will execute instruments
and authorize or file termination statements to release property from the Lien of this Indenture or
convey the Indenture Trustee’s interest in the same to effect the transfers of Receivables
permitted by Sections 8.4 or 10.1. No party relying upon an instrument or authorization executed
by the Indenture Trustee as provided in this Article VIII is required to
ascertain the Indenture Trustee’s authority, inquire into the satisfaction of any conditions
precedent or require evidence as to the application of any monies.



45









 





     (d) The Indenture Trustee, at such time as there are no Notes Outstanding and all sums due
from the Issuer to the Indenture Trustee pursuant to Section 6.7 have been paid in full, will
release the Collateral from the Lien of this Indenture and release to the Issuer or any other
Person entitled to such funds, the funds then in the Bank Accounts under this Indenture. The
Indenture Trustee will release property from the Lien of this Indenture pursuant to this Section
8.4(d) only upon receipt of an Issuer Request accompanied by an Officer’s Certificate and an
Opinion of Counsel and (if required by the TIA) Independent Certificates in accordance with
Sections 314(c) and 314(d)(1) of the TIA meeting the requirements of Section 11.1.



ARTICLE IX

SUPPLEMENTAL INDENTURES




     Section 9.1. Supplemental Indentures Without Consent of Noteholders.



     (a) The Issuer and the Indenture Trustee, when directed by Issuer Order, may enter, without
the consent of the Noteholders but with prior notice by the Issuer to the Rating Agencies, into one
or more indentures supplemental to this Indenture (which will conform to the provisions of the
Trust Indenture Act as in force at the date of the execution of any such indenture supplemental to
this Indenture) for any of the following purposes:




     (i) to correct or expand the description of any property subject to the Lien of this
Indenture, or better to assure, convey and confirm unto the Indenture Trustee any property
subject or required to be subjected to the Lien of this Indenture, or to subject additional
property to the Lien of this Indenture;




     (ii) to evidence the succession, in compliance with this Indenture, of another Person
to the Issuer, and the assumption by any such successor of the covenants of the Issuer in
this Indenture and in the Notes;




     (iii) to add to the covenants of the Issuer, for the benefit of the Noteholders, or to
surrender any right or power conferred upon the Issuer in this Indenture;




     (iv) to convey, transfer, assign, mortgage or pledge any property to or with the
Indenture Trustee;




     (v) to cure any ambiguity, to correct or supplement any provision in this Indenture or
in any supplemental indenture that may be inconsistent with any other provision in this
Indenture or in any supplemental indenture or to add provisions which are not inconsistent
with the provisions of this Indenture so long as such action does not materially adversely
affect the interests of the Noteholders;




     (vi) to evidence the acceptance of the appointment under this Indenture of a successor
trustee with respect to the Notes and to add to or change any of the provisions
of this Indenture as will be necessary to facilitate the administration of the trusts
under this Indenture by more than one trustee, pursuant to Article VI; or



46









 






     (vii) to modify, eliminate or add to the provisions of this Indenture as necessary to
effect the qualification of this Indenture under the TIA and to add to this Indenture such
other provisions as may be required by the TIA.



     All supplemental indentures pursuant to this Section 9.1(a) will be in form reasonably
satisfactory to the Indenture Trustee. The Indenture Trustee is authorized to join in the
execution of any such supplemental indenture and to make any further reasonably appropriate
agreements and stipulations that may be contained in such supplemental indenture.



     (b) The Issuer and the Indenture Trustee, when directed by Issuer Order, may enter, without
the consent of any of the Noteholders, into an indenture or indentures supplemental to this
Indenture for the purpose of adding any provisions to, or changing in any manner or eliminating any
of the provisions of, this Indenture or of modifying in any manner (other than the modifications
set forth in Section 9.2) the rights of the Noteholders under this Indenture or for the purpose of
issuing additional securities in exchange for all or a portion of the Residual Interest, subject to
the following conditions:




     (i) the Issuer delivers, or causes the Administrator to deliver, to the Indenture
Trustee an Officer’s Certificate to the effect that such amendment will not have a material
adverse effect on the Notes;




     (ii) the Issuer delivers an Opinion of Counsel to the Indenture Trustee stating that
such amendment will not (A) cause any Note to be deemed sold or exchanged for purposes of
Section 1001 of the Code, (B) cause the Issuer to be treated as an association or publicly
traded partnership taxable as a corporation for U.S. federal income tax purposes, or (C)
with respect to the issuance of additional securities only, adversely affect the treatment
of the Notes as debt for U.S. federal income tax purposes;




     (iii) the Rating Agency Condition has been satisfied with respect to such amendment;
and




     (iv) with respect to the issuance of additional securities only, (A) payments of
interest and principal on such additional securities on each Payment Date will be
subordinate to payments of interest and principal on the Notes, and (B) either (1) such
additional securities are registered under the Securities Act or (2) the Issuer delivers an
Opinion of Counsel to the Indenture Trustee to the effect that the offer, sale and delivery
of such additional securities do not require registration under the Securities Act.



     Section 9.2. Supplemental Indentures with Consent of Noteholders.



     (a) The Issuer and the Indenture Trustee, when directed by Issuer Order, may enter, with the
consent of the Noteholders of a majority of the Note Balance of the Controlling Class and with
prior notice by the Issuer to the Rating Agencies, into an indenture or indentures
supplemental to this Indenture for the purpose of adding any provisions to, or changing in any
manner or eliminating any of the provisions of, this Indenture or modifying in any manner the
rights of the Noteholders under this Indenture if the Issuer delivers an Opinion of Counsel to the
Indenture Trustee to the effect that such amendment will not (i) cause any Note to be deemed sold
or exchanged for purposes of Section 1001 of the Code or (ii) cause the Issuer to be treated



47









 







as an association or publicly traded partnership taxable as a corporation for U.S. federal income tax
purposes; provided, however, that no such supplemental indenture, without the
consent of each Noteholder of each Outstanding Note adversely affected by such supplemental
indenture, will:




	 	(A)	 	modify or alter Section 9.1 or this Section 9.2;
	 
	 	(B)	 	change (1) the Final Scheduled Payment Date or the date
of payment of any installment of principal of or interest on any Note, (2)
the principal amount of or interest rate on any Note, (3) the price at
which the Notes may be redeemed, (4) the provisions of this Indenture
relating to the priority of payments on the Notes or relating to the
application of collections on, or the proceeds of the sale of, the
Collateral to payment of principal of or interest on the Notes, or change
any place of payment where, or the coin or currency in which, any Note or
the interest on any Note is payable, or (5) the right of Noteholders to
institute Proceedings to enforce this Indenture;
	 
	 	(C)	 	modify the percentage of the Note Balance of the Notes
Outstanding or the Controlling Class required for any action;
	 
	 	(D)	 	modify or alter (1) the second proviso to the
definition of “Outstanding” or (2) the definition of “Controlling Class”;
	 
	 	(E)	 	modify the calculation of the amount of any payment of
interest or principal due on any Note on any Payment Date; or
	 
	 	(F)	 	permit the creation of any Lien ranking prior or equal
to the Lien of this Indenture with respect to any part of the Collateral
other than Permitted Liens, or except as permitted by this Indenture or the
other Transaction Documents, release the Lien of this Indenture with
respect to any part of the Collateral.





     (b) It will not be necessary for any Act of Noteholders under this Section 9.2 to approve the
particular form of any proposed supplemental indenture, but it will be sufficient if such Act of
Noteholders approves the substance of such proposed supplemental indenture.



     Section 9.3. Execution of Supplemental Indentures. In executing, or permitting the
additional trusts created by, any supplemental indenture permitted by this Article IX or the
modification of the trusts created by this Indenture, the Indenture Trustee will be entitled to
receive, and subject to Sections 6.1 and 6.2, will be fully protected in relying upon, an Opinion
of Counsel to the effect that the execution of such
supplemental indenture is authorized or permitted by this Indenture and that all conditions
precedent to the execution and delivery of such supplemental indenture have been satisfied. The
Indenture Trustee may, but is not obligated to, enter into any such supplemental indenture that
affects the Indenture Trustee’s own rights, powers, duties, obligations, liabilities or immunities
under this Indenture or otherwise.



48









 





     Section 9.4. Effect of Supplemental Indenture. Upon the execution of any supplemental
indenture pursuant to this Article IX, this Indenture will be modified and amended in accordance
with such supplemental indenture, and such supplemental indenture will be part of this Indenture
for any and all purposes. Every Noteholder of Notes authenticated and delivered before or after
such supplemental indenture will be bound by such supplemental indenture.



     Section 9.5. Conformity with Trust Indenture Act. Every amendment of this Indenture
and every supplemental indenture executed pursuant to this Article IX will conform to the
requirements of the Trust Indenture Act as then in effect so long as this Indenture is qualified
under the Trust Indenture Act.



     Section 9.6. Reference in Notes to Supplemental Indentures. Notes authenticated and
delivered after the execution of any supplemental indenture pursuant to this Article IX may, and if
required by the Indenture Trustee will, bear a notation in form approved by the Indenture Trustee
as to any matter provided for in such supplemental indenture. If the Issuer or the Indenture
Trustee so determine, new Notes so modified as to conform, in the opinion of the Indenture Trustee
and the Issuer, to any such supplemental indenture may be prepared and executed by the Issuer and
authenticated and delivered by the Indenture Trustee in exchange for Outstanding Notes.



ARTICLE X

REDEMPTION OF NOTES




     Section 10.1. Redemption.



     (a) The Notes are subject to redemption in whole, but not in part, at the direction of the
Servicer on any Payment Date on which the Servicer exercises its option to purchase the Trust
Property pursuant to Section 8.1 of the Sale and Servicing Agreement. After the Servicer notifies
the Indenture Trustee that it will exercise its option pursuant to Section 8.1 of the Sale and
Servicing Agreement, the Indenture Trustee will promptly notify the Noteholders:




     (i) of the outstanding Note Balance of each Class of the Notes to be prepaid as of the
most recent Payment Date and that the Notes plus accrued and unpaid interest on such Notes
at the applicable Note Interest Rate to the Redemption Date will be paid in full;




     (ii) of the place where such Notes are to be surrendered for final payment (which will
be the office or agency of the Issuer maintained as provided in Section 3.2); and




     (iii) that on the Redemption Date, the outstanding principal amount will become due and
payable upon the Notes and that interest on the Notes will cease to accrue from and after
the Redemption Date, unless the Issuer defaults in the payment of the Notes on the
Redemption Date.



     (b) The Issuer will cause the Servicer to deposit by 10:00 a.m. (New York City time) on the
Business Day preceding the Redemption Date (or, with satisfaction of the Rating Agency Condition,
on the Redemption Date) in the Collection Account the amount required pursuant to



49









 







Section 8.1 of
the Sale and Servicing Agreement, whereupon all such Notes will be paid in full on the Redemption
Date.



     (c) On the Redemption Date, the outstanding principal amount of the Notes will be due and
payable and interest on the Notes will cease to accrue from and after the Redemption Date, unless
the Issuer defaults in the payment of the Notes on the Redemption Date. Upon redemption, the
Indenture Trustee agrees to execute any and all instruments reasonably requested of it to release
the Collateral from the Lien of this Indenture and release to the Issuer or any other Person
entitled to any funds then on deposit in the Bank Accounts under this Indenture.



ARTICLE XI

MISCELLANEOUS




     Section 11.1. Compliance Certificates and Opinions, etc.



     (a) In connection with any order or request by the Issuer to the Indenture Trustee to take any
action under this Indenture, the Issuer will deliver the following documents to the Indenture
Trustee (such documents, collectively, an “Issuer Order” or “Issuer Request”, as
applicable): (i) a written order or a written request, respectively, signed in the name of the
Issuer by any one of its Responsible Persons and delivered to the Indenture Trustee, (ii) an
Officer’s Certificate stating that all conditions precedent provided for in this Indenture relating
to the proposed action have been complied with, (iii) to the extent required by the TIA or upon
request of the Indenture Trustee, an Opinion of Counsel to the effect that in the opinion of such
counsel all such conditions precedent have been complied with and (iv) (if required by the TIA) an
Independent Certificate from a firm of certified public accountants of national reputation selected
by the Issuer. However, in the case of any such order or request as to which the furnishing of
such documents is specifically required by this Indenture, no additional certificate or opinion
need be furnished.



     (b) Every certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture will include:




     (i) a statement that each signatory of such certificate or opinion has read such
covenant or condition and the definitions in this Indenture relating to such covenant or
condition;




     (ii) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;




     (iii) a statement that, in the opinion of each such signatory, such signatory has made
such examination or investigation as is necessary to enable such signatory to express an
informed opinion as to whether or not such covenant or condition has been complied with; and




     (iv) a statement as to whether, in the opinion of each such signatory, such condition
or covenant has been complied with.



50









 





     (c) (i) Before depositing any cash or property with the Indenture Trustee that is to be made
the basis for the release of any property subject to the Lien of this Indenture, the Issuer will,
furnish to the Indenture Trustee (A) an Officer’s Certificate stating the opinion of each
Responsible Person signing such certificate as to the fair value (within 90 days of such deposit)
to the Issuer of the cash or property to be so deposited and (B) an Independent Certificate as to
the same matters, if the fair value to the Issuer of the securities to be so deposited and of all
other such securities made the basis of any such withdrawal or release since the commencement of
the then-current calendar year, as set forth in the certificates delivered pursuant to Section
11.1(c)(i)(A), is 10% or more of the Note Balance of the Notes Outstanding, but such a certificate
need not be furnished with respect to any property or securities so deposited, if the fair value of
such property or securities to the Issuer as set forth in the related Officer’s Certificate is less
than $25,000 or less than 1% of the Note Balance of the Notes Outstanding.




     (ii) Whenever any property or securities are to be released from the Lien of this
Indenture, the Issuer will furnish to the Indenture Trustee (A) an Officer’s Certificate
certifying or stating the opinion of each Responsible Person signing such certificate as to
the fair value (within 90 days of such release) of the property or securities proposed to be
released and stating that in the opinion of such Responsible Person the proposed release
will not impair the security under this Indenture in contravention of the provisions of this
Indenture and (B) an Independent Certificate as to the same matters, if the fair value of
the property or securities and of all other property, other than property as contemplated by
Section 11.1(c)(iii), or securities released from the Lien of this Indenture since the
commencement of the then-current calendar year, as set forth in the certificates required by
Section 11.1(c)(ii)(A) and this Section 11.1(c)(ii)(B), equals 10% or more of the Note
Balance of the Notes Outstanding, but such certificate need not be furnished in the case of
any release of property or securities, if the fair value of such property or securities as
set forth in the related Officer’s Certificate is less than $25,000 or less than 1% of the
Note Balance of the Notes Outstanding.



     (d) Notwithstanding Section 2.9 or any other provisions of this Section 11.1, the Issuer may,
without compliance with the requirements of the other provisions of this Section 11.1, (i) collect,
liquidate, sell or otherwise dispose of Receivables and Financed Vehicles in the ordinary course of
its business provided that all proceeds, Recoveries and related amounts and proceeds of such
dispositions are applied in accordance with the provisions of this Indenture and (ii) make cash
payments out of the Bank Accounts, in each case, as and to the extent permitted or required by the
Transaction Documents.



     (e) If the Securities and Exchange Commission issues an exemptive order under Section 304(d)
of the TIA modifying the Indenture Trustee’s obligations under Sections 314(c) and 314(d)(1) of the
TIA, the Indenture Trustee will release property from the Lien of this Indenture only in accordance
with the Transaction Documents and the conditions and procedures set forth in such exemptive order.



51









 





     Section 11.2. Form of Documents Delivered to Indenture Trustee.



     (a) Any Officer’s Certificate of a Responsible Person of the Issuer may be based, insofar as
it relates to legal matters, upon an opinion of counsel, unless such Responsible Person knows, or
in the exercise of reasonable care should know, that such opinion, with respect to the matters upon
which such Officer’s Certificate is based, is erroneous. Any Officer’s Certificate of a
Responsible Person of the Issuer or opinion of counsel may be based, insofar as it relates to
factual matters, upon an Officer’s Certificate of or representation by a Responsible Person of the
Servicer, the Depositor or the Issuer (including by the Administrator on behalf of the Issuer),
stating that the information with respect to such factual matters is in the possession of the
Servicer, the Depositor, the Issuer or the Administrator, unless such Responsible Person of the
Issuer or counsel knows, or in the exercise of reasonable care should know, that the Officer’s
Certificate or representation with respect to such matters is erroneous.



     (b) In any case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be certified by, or
covered by the opinion of, only one such Person, or that they be certified or covered by only one
document, but one such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify or give an opinion
as to such matters in one or several documents.



     Section 11.3. Acts of Noteholders.



     (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by the Noteholders or a specified percentage of
Noteholders may be embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Noteholders in person or by agents duly appointed in writing. Except as
otherwise provided in this Indenture such action will become effective when such instrument or
instruments are delivered to the Indenture Trustee, and, if required, to the Issuer. Such
instrument or instruments (and the action embodied in such instrument or
instruments and evidenced by such instrument or instruments) are sometimes referred to in this
Indenture as the “Act of Noteholders” signing such instrument or instruments. Proof of
execution of any such instrument or of a writing appointing any such agent will be sufficient for
any purpose of this Indenture and (subject to Section 6.1) conclusive in favor of the Indenture
Trustee and the Issuer, if made in the manner provided in this Section 11.3.



     (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved in any manner that the Indenture Trustee deems sufficient.



     (c) Any Act of Noteholders will bind the Noteholder of every Note issued upon the registration
of such Note or in exchange for such Note or in lieu of such Note, in respect of anything done,
omitted or suffered to be done by the Indenture Trustee or the Issuer in reliance on such Note,
whether or not notation of such action is made upon such Note.



52









 





     Section 11.4. Notices, etc., to Indenture Trustee, Issuer and Rating Agencies.



     (a) Unless otherwise specified in this Indenture, all notices, requests, demands, consents,
waivers or other communications to or from the parties to this Indenture must be in writing and
will be deemed to have been given and made:




     (i) upon delivery or, in the case of a letter mailed by registered first class mail,
postage prepaid, three days after deposit in the mail;




     (ii) in the case of a fax, when receipt is confirmed by telephone, reply email or reply
fax from the recipient;




     (iii) in the case of an email, 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) of an email to such recipient stating that such electronic posting has occurred.



     Unless otherwise specified in this Indenture, any such notice, request, demand, consent or
other communication must be delivered or addressed as set forth on Schedule B to the Sale and
Servicing Agreement or at such other address as any party may designate by notice to the other
parties.



     (b) Any notice required or permitted to be mailed to a Noteholder (i) in the case of
Definitive Notes, must be sent by overnight delivery, mailed by registered first class mail,
postage prepaid, or sent by fax, to the address of such Person as shown in the Note Register or
(ii) in the case of Book-Entry Notes, must be delivered pursuant to the applicable procedures of
the Clearing Agency. Any notice so mailed within the time prescribed in this Indenture will be
conclusively presumed to have been duly given, whether or not the Noteholder receives such notice.



     Section 11.5. Notices to Noteholders; Waiver.



     (a) Any notice to Noteholders will be sufficiently given (unless otherwise provided in this
Indenture) if in writing and (i) in the case of Definitive Notes, sent by overnight delivery,
mailed by registered first class mail, postage prepaid, or sent by facsimile, to each Noteholder
adversely affected by such event, at its address or fax number as it appears on the Note Register
or (ii) in the case of Book-Entry Notes, delivered pursuant to the applicable procedures of the
Clearing Agency, in each case, not later than the latest date, and not earlier than the earliest
date, prescribed for the giving of such notice. In any case where notice to Noteholders is given
by mail, neither the failure to mail such notice nor any defect in any notice so mailed to any
particular Noteholder will affect the sufficiency of such notice with respect to other Noteholders,
and any notice that is mailed in the manner provided in this Indenture will conclusively be
presumed to have been duly given.



53









 





     (b) Where this Indenture provides for notice in any manner, such notice may be waived by any
Person entitled to receive such notice, either before or after the event, and such waiver will be
the equivalent of such notice. Waivers of notice by Noteholders will be filed with the Indenture
Trustee but such filing will not be a condition precedent to the validity of any action taken in
reliance upon such a waiver.



     (c) In case, by reason of the suspension of regular mail service as a result of a strike, work
stoppage or similar activity, it is impractical to mail notice of any event to Noteholders when
such notice is required to be given pursuant to this Indenture, then any manner of giving such
notice satisfactory to the Indenture Trustee will be deemed to be a sufficient giving of such
notice.



     (d) Where this Indenture provides for notice to the Rating Agencies, failure to give such
notice will not affect any other rights or obligations created under this Indenture, and will not
under any circumstance constitute a Default or Event of Default.



     Section 11.6. Conflict with Trust Indenture Act. If any provision of this Indenture
limits, qualifies or conflicts with another provision of this Indenture that is required or deemed
to be included in this Indenture by any of the provisions of the TIA, such required or deemed
provision will control. The provisions of Sections 310 through 317 of the TIA that impose duties
on any Person (including the provisions automatically deemed included in this Indenture unless
expressly excluded by this Indenture) are a part of and govern this Indenture.



     Section 11.7. Benefits of Indenture. Nothing in this Indenture or in the Notes,
express or implied, will give to any Person, other than the parties to this Indenture and their
successors under this Indenture, and the Secured Parties and any other party secured under this
Indenture, and any other Person with an ownership interest in any part of the Collateral, any
benefit or any legal or equitable right, remedy or claim under this Indenture.



     Section 11.8. GOVERNING LAW. THIS INDENTURE WILL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.



     Section 11.9. Submission to Jurisdiction. The parties submit to the nonexclusive
jurisdiction of the United States District Court for the Southern District of New York and of any
New York State Court sitting in New York, New York for purposes of all legal proceedings arising
out of or relating to this Indenture. The parties irrevocably waive, to the fullest extent they may
do so, any objection that they may now or hereafter have to the laying of the venue of any such
proceeding brought in such a court and any claim that any such proceeding brought in such a court
has been brought in an inconvenient forum.



     Section 11.10. WAIVER OF JURY TRIAL. EACH PARTY TO THIS INDENTURE IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE OR THE TRANSACTIONS CONTEMPLATED BY THIS
INDENTURE.



54









 





     Section 11.11. Severability. If any of the covenants, agreements or terms of this
Indenture is held invalid, illegal or unenforceable, then it will be deemed severable from the
remaining covenants, agreements or terms of this Indenture and will in no way affect the validity,
legality or enforceability of the remaining Indenture or of the Notes or the rights of the
Noteholders.



     Section 11.12. Counterparts. This Indenture may be executed in any number of
counterparts. Each counterpart will be an original, and all counterparts will together constitute
one and the same instrument.



     Section 11.13. Headings. The headings in this Indenture are included for convenience
only and will not affect the meaning or interpretation of this Indenture.



     Section 11.14. Issuer Obligation. No recourse may be taken, directly or indirectly,
with respect to the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the
Notes or under this Indenture or any certificate or other writing delivered in connection with this
Indenture or the Notes, against (a) the Indenture Trustee or the Owner Trustee each in its
individual capacity, (b) any holder of a beneficial interest in the Issuer, (c) any partner, owner,
beneficiary, agent, officer, director, employee or agent of the Indenture Trustee or the Owner
Trustee, each in its individual capacity or (d) any holder of a beneficial interest in the Owner
Trustee or the Indenture Trustee, each in
its individual capacity, except as any such Person may have agreed (it being understood that
the Indenture Trustee and the Owner Trustee have no such obligations in their individual
capacities). For all purposes of this Indenture, in the performance of any duties or obligations
of the Issuer under this Indenture, the Owner Trustee will be subject to, and entitled to the
benefits of, Articles V, VI and VII of the Trust Agreement.



     Section 11.15. Subordination of Claims against the Depositor.



     (a) The obligations of the Issuer under this Indenture are solely the obligations of the
Issuer and do not represent any obligation or interest in any assets of the Depositor. The
Indenture Trustee, by entering into this Indenture, and each Noteholder and Note Owner, by
accepting a Note or a beneficial interest in a Note, acknowledge and agree that they have no right,
title or interest in or to any Other Assets of the Depositor. Notwithstanding the preceding
sentence, if such Indenture Trustee, Noteholder or Note Owner either (i) asserts an interest or
claim to, or benefit from, the Other Assets, or (ii) is deemed to have any such interest, claim to,
or benefit in or from the Other Assets, whether by operation of law, legal process, pursuant to
insolvency laws or otherwise (including by virtue of Section 1111(b) of the Bankruptcy Code), then
such Indenture Trustee, Noteholder or Note Owner further acknowledges and agrees that any such
interest, claim or benefit in or from the Other Assets is expressly subordinated to the
indefeasible payment in full of the other obligations and liabilities, which, under the relevant
documents relating to the securitization or conveyance of such Other Assets, are entitled to be
paid from, entitled to the benefits of, or otherwise secured by such Other Assets (whether or not
any such entitlement or security interest is legally perfected or otherwise entitled to a priority
of distributions or application under applicable law, including insolvency laws, and whether or not
asserted against the Depositor), including the payment of post-petition interest on such other
obligations and liabilities. This subordination agreement is deemed a subordination agreement
within the meaning of Section 510(a) of the Bankruptcy Code. The Indenture Trustee, each



55









 







Noteholder and each Note Owner further acknowledges and agrees that no adequate remedy at law
exists for a breach of this Section 11.15 and this Section 11.15 may be enforced by an action for
specific performance.



     (b) This Section 11.15 is for the third party benefit of those entitled to rely on this
Section 11.15 and will survive the termination of this Indenture.



     Section 11.16. No Petition. The Indenture Trustee, each Noteholder or Note Owner, by
accepting a Note or a beneficial interest in a Note, each covenants and agrees that, before the
date that is one year and one day (or, if longer, any applicable preference period) after the
payment in full of (a) all securities issued by the Depositor or by a trust for which the Depositor
was a depositor and (b) the Notes, it will not institute against, or join any other Person in
instituting against, the Depositor or the Issuer, respectively, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings or other proceedings under any federal or State
bankruptcy or similar law in connection with any obligations relating to the Notes, this Indenture
or any of the
Transaction Documents. This Section 11.16 will survive the resignation or removal of the
Indenture Trustee under this Indenture and the termination of this Indenture.



[Remainder of Page Intentionally Left Blank]




56









 









EXECUTED BY:




	 	 	 	 	 
	 	FORD CREDIT AUTO OWNER TRUST 2011-B,

as Issuer

 	 
	 	By:  	U.S. BANK TRUST NATIONAL ASSOCIATION,
 	 
	 	 	not in its individual capacity but solely as Owner Trustee of Ford Credit
Auto Owner Trust 2011-B 	 
	 
	 	By:  	/s/ Nicole Poole

 	 
	 	 	Name:  	Nicole Poole	 
	 	 	Title:  	Vice President	 
	 
	 	THE BANK OF NEW YORK MELLON,

not in its individual capacity but solely as
Indenture Trustee

 	 
	 	By:  	/s/ Antonio Vayas 	 
	 	 	Name:  	Antonio Vayas 	 
	 	 	Title:  	Vice President 	 
	 




 











 





Exhibit A




Form of Class A Note



UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE OF THIS NOTE FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER OF THIS NOTE, CEDE & CO., HAS AN INTEREST IN THIS NOTE.



[Class A-1 Notes Only: THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES OR BLUE SKY LAWS OF ANY STATE
OF THE UNITED STATES. THE HOLDER OF THIS NOTE, BY PURCHASING THIS NOTE, AGREES FOR THE BENEFIT OF
THE ISSUER AND THE DEPOSITOR THAT THIS NOTE MAY BE SOLD, TRANSFERRED, ASSIGNED, PARTICIPATED,
PLEDGED OR OTHERWISE DISPOSED OF ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE
LAWS, AND ONLY (I) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (II)
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER, WITHIN THE MEANING OF RULE 144A (A “QIB”), PURCHASING
FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT
THE REOFFER, RESALE, PLEDGE, OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (III) TO
THE DEPOSITOR OR ITS AFFILIATES, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF
THE UNITED STATES AND SECURITIES AND BLUE SKY LAWS OF THE STATES OF THE UNITED STATES.]



EACH NOTE OWNER THAT IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
AS AMENDED (“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
“CODE”), OR ANY FEDERAL, STATE, LOCAL OR NON-U.S. LAW OR REGULATION THAT IS SUBSTANTIALLY SIMILAR
TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE (“SIMILAR LAW”), BY ACCEPTING A BENEFICIAL INTEREST
IN THIS NOTE, IS DEEMED TO REPRESENT THAT ITS PURCHASE AND HOLDING OF SUCH BENEFICIAL INTEREST DOES
NOT CONSTITUTE AND WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER TITLE I OF ERISA OR
SECTION 4975 OF THE CODE DUE TO THE APPLICABILITY OF A STATUTORY OR ADMINISTRATIVE EXEMPTION FROM
THE PROHIBITED TRANSACTION RULES (OR, IF THE NOTE OWNER IS SUBJECT TO ANY SIMILAR LAW, SUCH
PURCHASE AND






A-1









 







HOLDING DOES NOT CONSTITUTE AND WILL NOT RESULT IN A VIOLATION OF SUCH SIMILAR LAW).



THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH IN THIS NOTE. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE OF THIS
NOTE.







A-2









 








	 	 	 	 	 

	REGISTERED

No. R-1

	 	$[__________]
	 	 

CUSIP NO. [__________]






FORD CREDIT AUTO OWNER TRUST 2011-B




CLASS A-[__] [___%] ASSET BACKED NOTES



     Ford Credit Auto Owner Trust 2011-B, a statutory trust organized under the laws of the State
of Delaware (the “Issuer”), for value received, promises to pay to CEDE & CO., or
registered assigns, the principal sum of [________________] DOLLARS payable on the fifteenth day of
each calendar month, or, if any such day is not a Business Day, the next succeeding Business Day,
commencing in [__________] (each, a “Payment Date”) in an amount equal to the aggregate
amount payable to Noteholders of Class A-[__] Notes on such Payment Date from the Principal Payment
Account in respect of principal on the Class A-[__] Notes pursuant to Section 3.1 of the Indenture,
dated as of [__________] (the “Indenture”), between the Issuer and The Bank of New York
Mellon, as Indenture Trustee (the “Indenture Trustee”). However, the entire unpaid
principal amount of this Note will be due and payable on the earlier of the [__________] Payment
Date (the “Class A-[__] Final Scheduled Payment Date”) or the Redemption Date pursuant to
Section 10.1 of the Indenture. Notwithstanding the foregoing, the entire unpaid principal amount
of the Notes will be due and payable on the date on which the Notes are declared to be immediately
due and payable in the manner provided in Section 5.2(a) of the Indenture. All principal payments
on the Class A-[__] Notes will be made ratably to the Noteholders entitled to such principal
payments. Capitalized terms used but not otherwise defined in this Note are defined in Article I of
the Indenture, which also contains rules as to usage applicable to this Note.



     The Issuer will pay interest on this Note at the rate per annum shown above on each Payment
Date until the principal of this Note is paid or made available for payment, on the principal
amount of this Note outstanding on the preceding Payment Date (after giving effect to all payments
of principal made on the preceding Payment Date), subject to certain limitations contained in
Section 3.1 of the Indenture. Interest on this Note will accrue for each Payment Date from and
including the [15th day of the calendar month preceding each Payment Date][previous Payment Date on
which interest has been paid] (or, in the case of the initial Payment Date, from and including the
Closing Date) to but excluding [the 15th day of the following calendar month][such Payment Date].
Interest will be computed on the basis of [actual days elapsed and] a 360-day year [of twelve 30
day months].



     The principal of and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private
debts. All payments made by the Issuer with respect to this Note will be applied first to interest
due and payable on this Note as provided above and then to the unpaid principal of this Note.



     This Note is one of a duly authorized issue of Class A-[__] [___%] Asset Backed Notes (the
“Class A-[__] Notes”) of the Issuer. Also authorized under the Indenture are the [[Class
A-[__] Notes, the Class B Notes, the Class C Notes and the Class D Notes.] The Indenture and all
indentures supplemental to the Indenture set forth the respective rights and obligations



A-3









 




thereunder of the Issuer, the Indenture Trustee and the Noteholders. The Notes are subject to
all terms of the Indenture.




     The Class A-[__] Notes are and will be equally and ratably secured by the collateral pledged
as security therefor as provided in the Indenture. Interest on and principal of the Notes will be
payable in accordance with the priority of payments set forth in Section 8.2 of the Indenture.



     Payments of interest on this Note on each Payment Date, together with any installment of
principal to the extent not in full payment of this Note, will be made to the Registered Noteholder
of this Note either by wire transfer in immediately available funds, to the account of such
Noteholder at a bank or other entity having appropriate facilities for such wire transfer, if such
Noteholder has provided to the Note Registrar appropriate written instructions at least five
Business Days before such Payment Date and such Noteholder’s Notes in the aggregate evidence a
denomination of not less than $1,000,000, or, if not, by check mailed first class mail, postage
prepaid, to such Registered Noteholder’s address as it appears on the Note Register on each Record
Date. However, unless Definitive Notes have been issued to Note Owners, payment will be made by
wire transfer in immediately available funds to the account designated by Cede & Co., as nominee of
the Clearing Agency or any successor nominee. Such payments will be made without requiring that
this Note be submitted for notation of payment. Any reduction in the principal amount of this Note
effected by any payments made on any Payment Date will be binding upon all future Noteholders of
this Note and of any Note issued upon the registration of transfer of this Note or in exchange of
this Note or in lieu of this Note, whether or not noted on this Note. If funds are expected to be
available for payment in full of the then remaining unpaid principal amount of this Note on a
Payment Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, will notify
the Registered Noteholder of this Note as of the preceding Record Date by notice mailed or
transmitted by facsimile before such Payment Date, and the amount then due and payable will be
payable only upon presentation and surrender of this Note at the Indenture Trustee’s Corporate
Trust Office or at the office of the Indenture Trustee’s agent appointed for such purposes located
in The City of New York.



     The Issuer will pay interest on overdue installments of interest at the Class A-[__] Note
Interest Rate to the extent lawful.



     The Notes may be redeemed, in whole but not in part, in the manner and to the extent described
in the Indenture and the Sale and Servicing Agreement.



     The transfer of this Note is subject to the restrictions on transfer specified on the face of
this Note and to the other limitations set forth in the Indenture. Subject to the satisfaction of
such restrictions and limitations, the transfer of this Note may be registered on the Note Register
upon surrender of this Note for registration of transfer at the office or agency designated by the
Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Indenture Trustee duly executed by, the Noteholder of this
Note or such Noteholder’s attorney duly authorized in writing, with such signature guaranteed by an
“eligible guarantor institution” meeting the requirements of the Note Registrar, and thereupon one
or more new Notes of the same Class in authorized denominations and in the same aggregate principal
amount will be issued to the designated transferee or transferees. No service charge



A-4









 




will be charged for any registration of transfer or exchange of this Note, but the transferor
may be required to pay an amount sufficient to cover any tax or other governmental charge that may
be imposed in connection with any such registration of transfer or exchange.




     Each Noteholder or Note Owner, by its acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture
Trustee on the Notes or under the Indenture or any certificate or other writing delivered in
connection with the Notes and the Indenture, against (i) the Indenture Trustee or the Owner
Trustee, each in its individual capacity, (ii) any holder of a beneficial interest in the Issuer,
(iii) any partner, owner, beneficiary, agent, officer, director, employee or agent of the Indenture
Trustee or the Owner Trustee, each in its individual capacity, or (iv) any holder of a beneficial
interest in the Owner Trustee or the Indenture Trustee, each in its individual capacity, except as
any such Person may have agreed.



     The obligations of the Issuer under the Indenture are solely the obligations of the Issuer and
do not represent any obligation or interest in any assets of the Depositor. Each Noteholder and
Note Owner, by its acceptance of a Note or a beneficial interest in a Note, acknowledges and agrees
that it has no right, title or interest in or to any Other Assets of the Depositor.
Notwithstanding the preceding sentence, if such Noteholder or Note Owner either (i) asserts an
interest or claim to, or benefit from, Other Assets, or (ii) is deemed to have any such interest,
claim to, or benefit in or from Other Assets, whether by operation of law, legal process, pursuant
to insolvency laws or otherwise (including by virtue of Section 1111(b) of the Bankruptcy Code),
then such Noteholder or Note Owner further acknowledges and agrees that any such interest, claim or
benefit in or from Other Assets is and will be expressly subordinated to the indefeasible payment
in full of the other obligations and liabilities, which, under the relevant documents relating to
the securitization or conveyance of such Other Assets, are entitled to be paid from, entitled to
the benefits of, or otherwise secured by such Other Assets (whether or not any such entitlement or
security interest is legally perfected or otherwise entitled to a priority of distributions or
application under applicable law, including insolvency laws, and whether or not asserted against
the Depositor), including the payment of post-petition interest on such other obligations and
liabilities.



     THIS SUBORDINATION AGREEMENT WILL BE DEEMED A SUBORDINATION AGREEMENT WITHIN THE MEANING OF
SECTION 510(a) OF THE BANKRUPTCY CODE.



     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees by accepting the benefits of the Indenture that
such Noteholder or Note Owner will not institute against the Depositor or the Issuer, or join in
any institution against the Depositor or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any federal or State bankruptcy or similar
law in connection with any obligations relating to the Notes, the Indenture or any of the other
Transaction Documents.



     The Issuer has entered into the Indenture and this Note is issued with the intention that, for
federal, State, and local income and franchise tax purposes, Notes that are beneficially owned



A-5









 




by a Person other than Ford Credit or its Affiliates will qualify as indebtedness of the
Issuer secured by the Collateral. Each Noteholder or Note Owner, by its acceptance of a Note or a
beneficial interest in a Note, will be deemed to agree to treat the Notes for federal, State and
local income, single business and franchise tax purposes as indebtedness of the Issuer.




     With respect to any date of determination, the Issuer, the Indenture Trustee and any agent of
the Issuer or the Indenture Trustee may treat the Person in whose name this Note is registered as
of such date as the owner of such Note for the purpose of receiving payments of principal of and
any interest on such Note and for all other purposes, and none of the Issuer, the Indenture Trustee
or any agent of the Issuer or the Indenture Trustee will recognize notice to the contrary.



     The Indenture permits, with certain exceptions requiring the consent of all adversely affected
Noteholders as provided in the Indenture, the amendment of the Indenture and the modification of
the rights and obligations of the Issuer and the rights of the Noteholders under the Indenture by
the Issuer with the consent of the Noteholders of Notes evidencing not less than a majority of the
Note Balance of the Controlling Class. The Indenture also permits the Indenture Trustee to amend
or waive certain terms and conditions set forth in the Indenture without the consent of the
Noteholders provided certain conditions are satisfied. In addition, the Indenture contains
provisions permitting the Noteholders of Notes evidencing specified percentages of the Note Balance
of the Notes Outstanding or of the Controlling Class, on behalf of all Noteholders, to waive
compliance by the Issuer with certain provisions of the Indenture and certain defaults under the
Indenture and their consequences. Any such consent or waiver by the Noteholder of this Note will
be conclusive and binding upon such Noteholder and upon all future Noteholders of this Note and of
any Note issued upon the registration of transfer of this Note or in exchange of this Note or in
lieu of this Note whether or not notation of such consent or waiver is made upon this Note.



     The term “Issuer”, as used in this Note, includes any successor to the Issuer under the
Indenture.



     The Issuer is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Indenture Trustee and the Noteholders under the
Indenture.



     The Notes are issuable only in registered form in denominations as provided in the Indenture,
subject to certain limitations set forth in the Indenture.



     THIS NOTE AND THE INDENTURE WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK.



     No reference in this Note to the Indenture, and no provision of this Note or of the Indenture,
will alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Note at the time, place and rate, and in the coin or currency
prescribed in this Note.



     Anything in this Note to the contrary notwithstanding, except as provided in the Transaction
Documents, none of The Bank of New York Mellon, in its individual capacity, U.S. Bank Trust
National Association, in its individual capacity, any owner of a beneficial interest in



A-6









 




the Issuer, or any of their respective partners, beneficiaries, agents, officers, directors,
employees or successors or assigns will be personally liable for, nor will recourse be had to any
of them for, the payment of principal or of interest on this Note or performance of, or omission to
perform, any of the covenants, obligations or indemnifications contained in the Indenture. The
Noteholder of this Note, by its acceptance of this Note, agrees that, except as provided in the
Transaction Documents, in the case of an Event of Default under the Indenture, the Noteholder has
no claim against any of the foregoing for any deficiency, loss or claim therefrom;
provided, however, that nothing contained in this Note will be taken to prevent
recourse to, and enforcement against, the assets of the Issuer for any and all liabilities,
obligations and undertakings contained in the Indenture or in this Note.




     Unless the certificate of authentication on this Note has been executed by the Indenture
Trustee whose name appears below by manual signature, this Note will not be entitled to any benefit
under the Indenture, or be valid or obligatory for any purpose.



[Remainder of Page Intentionally Left Blank]






A-7









 








     The Issuer has caused this instrument to be signed, manually or in facsimile, by its
Responsible Person, as of the date set forth below.



Date: [__________]




	 	 	 	 	 
	 	FORD CREDIT AUTO OWNER TRUST 2011-B

 	 
	 	BY:  	U.S. BANK TRUST NATIONAL ASSOCIATION,
 	 
	 	 	not in its individual capacity but solely as Owner 	 
	 	 	Trustee of Ford Credit Auto Owner Trust 2011-B 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Responsible Person 	 
	 	 	 	 
	 



TRUSTEE’S CERTIFICATE OF AUTHENTICATION





     This is one of the Class A-[__] Notes designated above and referred to in the Indenture.



Date: [__________]




	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON,

not in its individual capacity but

solely as Indenture Trustee

 	 
	 	By:  	 	 
	 	 	Responsible Person 	 
	 	 	 	 



A-8









 






	 	 	 	 	 



ASSIGNMENT





     Social Security or taxpayer I.D. or other identifying number of assignee:


FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:




	 	 	 	 	 
	
 	 	 
	(name and address of assignee) 	 	 
	 	 	 


the within Note and all rights under said Note, and hereby irrevocably constitutes and appoints
_________________, attorney, to transfer said Note on the books kept for registration of said Note,
with full power of substitution in the premises.




	 	 	 

	Dated:                                                                            
 

	 	                                                                       
                        */

Signature Guaranteed






*/






 




			
	*/	 	NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears on the
face of the within Note in every particular, without alteration, enlargement or any change whatever. Such signature
must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, which
requirements include membership or participation in the Securities Transfer Agents Medallion Program or such other
“signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for, the
Securities Transfer Agents Medallion Program, all in accordance with the Exchange Act.




A-9









 










Exhibit B




Form of Class B / C / D Note



UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE OF THIS NOTE FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER OF THIS NOTE, CEDE & CO., HAS AN INTEREST IN THIS NOTE.



[Class D only: THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR UNDER THE SECURITIES OR BLUE SKY LAWS OF ANY STATE OF THE UNITED STATES. THE
HOLDER OF THIS NOTE, BY PURCHASING THIS NOTE, AGREES FOR THE BENEFIT OF THE ISSUER AND THE
DEPOSITOR THAT THIS NOTE MAY BE SOLD, TRANSFERRED, ASSIGNED, PARTICIPATED, PLEDGED OR OTHERWISE
DISPOSED OF ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS, AND ONLY (I)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (II) PURSUANT TO RULE
144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER, WITHIN THE MEANING OF RULE 144A (A “QIB”), PURCHASING FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER,
RESALE, PLEDGE, OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (III) TO THE DEPOSITOR
OR ITS AFFILIATES, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED
STATES AND SECURITIES AND BLUE SKY LAWS OF THE STATES OF THE UNITED STATES.]



EACH NOTE OWNER THAT IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
AS AMENDED (“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
“CODE”), OR ANY FEDERAL, STATE, LOCAL OR NON-U.S. LAW OR REGULATION THAT IS SUBSTANTIALLY SIMILAR
TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE (“SIMILAR LAW”), BY ACCEPTING A BENEFICIAL INTEREST
IN THIS NOTE, IS DEEMED TO REPRESENT THAT ITS PURCHASE AND HOLDING OF SUCH BENEFICIAL INTEREST DOES
NOT CONSTITUTE AND WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER TITLE I OF ERISA OR
SECTION 4975 OF THE CODE DUE TO THE APPLICABILITY OF A STATUTORY OR ADMINISTRATIVE EXEMPTION FROM
THE PROHIBITED TRANSACTION RULES (OR, IF THE NOTE OWNER IS SUBJECT TO ANY SIMILAR LAW, SUCH
PURCHASE AND






B-1









 







HOLDING DOES NOT CONSTITUTE AND WILL NOT RESULT IN A VIOLATION OF SUCH SIMILAR LAW).



THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH IN THIS NOTE. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE OF THIS
NOTE.







B-2









 








	 	 	 

	     

	 	$[__________]
	 
	 	 
	No. [B/C/D]-1

	 	CUSIP NO. [__________]






FORD CREDIT AUTO OWNER TRUST 2011-B




CLASS [B/C/D] [____]% ASSET BACKED NOTES



     Ford Credit Auto Owner Trust 2011-B, a statutory trust organized under the laws of the State
of Delaware (the “Issuer”), for value received, promises to pay to CEDE & CO., or
registered assigns, the principal sum of [______________________] DOLLARS payable on the fifteenth
day of each calendar month, or, if any such day is not a Business Day, the next succeeding Business
Day, commencing in [________] (each, a “Payment Date”) in an amount equal to the aggregate
amount payable to Noteholders of Class [B/C/D] Notes on such Payment Date from the Principal
Payment Account in respect of principal on the Class [B/C/D] Notes pursuant to Section 3.1 of the
Indenture, dated as of [__________] (the “Indenture”), between the Issuer and The Bank of
New York Mellon, as Indenture Trustee (the “Indenture Trustee”). However, the entire
unpaid principal amount of this Note will be due and payable on the earlier of the [________]
Payment Date (the “Class [B/C/D] Final Scheduled Payment Date”) or the Redemption Date
pursuant to Section 10.1 of the Indenture. Notwithstanding the foregoing, the entire unpaid
principal amount of the Notes will be due and payable on the date on which the Notes are declared
to be immediately due and payable in the manner provided in Section 5.2(a) of the Indenture. All
principal payments on the Class [B/C/D] Notes will be made ratably to the Noteholders entitled to
such principal payments. Capitalized terms used but not otherwise defined in this Note are defined
in Article I of the Indenture, which also contains rules as to usage applicable to this Note.



     The Issuer will pay interest on this Note at the rate per annum shown above on each Payment
Date until the principal of this Note is paid or made available for payment, on the principal
amount of this Note outstanding on the preceding Payment Date (after giving effect to all payments
of principal made on the preceding Payment Date), subject to certain limitations contained in
Section 3.1 of the Indenture. Interest on this Note will accrue for each Payment Date from and
including the 15th day of the calendar month preceding each Payment Date (or, in the
case of the initial Payment Date, from and including the Closing Date) to but excluding the
15th day of the following calendar month. Interest will be computed on the basis of a
360-day year of twelve 30-day months.



     The principal of and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private
debts. All payments made by the Issuer with respect to this Note will be applied first to interest
due and payable on this Note as provided above and then to the unpaid principal of this Note.



     This Note is one of a duly authorized issue of Class [B/C/D] [____]% Asset Backed Notes (the
“Class [B/C/D]Notes”) of the Issuer. Also authorized under the Indenture are the
[Class A-[___] Notes, the Class [B] Notes, the Class [C] Notes and the Class [D] Notes]. The



B-3









 




Indenture and all indentures supplemental to the Indenture set forth the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the Noteholders. The Notes are
subject to all terms of the Indenture.




     The Class [B/C/D] Notes are and will be equally and ratably secured by the collateral pledged
as security therefor as provided in the Indenture. The Class [B/C/D] Notes are subordinated in
right of payment to the Class A Notes, [the Class B Notes, the Class C Notes].



     Payments of interest on this Note on each Payment Date, together with any installment of
principal to the extent not in full payment of this Note, will be made to the Registered Noteholder
of this Note either by wire transfer in immediately available funds, to the account of such
Noteholder at a bank or other entity having appropriate facilities for such wire transfer, if such
Noteholder has provided to the Note Registrar appropriate written instructions at least five
Business Days before such Payment Date and such Noteholder’s Notes in the aggregate evidence a
denomination of not less than $1,000,000, or, if not, by check mailed first class mail, postage
prepaid, to such Registered Noteholder’s address as it appears on the Note Register on each Record
Date. Such payments will be made without requiring that this Note be submitted for notation of
payment. Any reduction in the principal amount of this Note effected by any payments made on any
Payment Date will be binding upon all future Noteholders of this Note and of any Note issued upon
the registration of transfer of this Note or in exchange of this Note or in lieu of this Note,
whether or not noted on this Note. If funds are expected to be available for payment in full of
the then remaining unpaid principal amount of this Note on a Payment Date, then the Indenture
Trustee, in the name of and on behalf of the Issuer, will notify the Registered Noteholder of this
Note as of the preceding Record Date by notice mailed or transmitted by facsimile before such
Payment Date, and the amount then due and payable will be payable only upon presentation and
surrender of this Note at the Indenture Trustee’s Corporate Trust Office or at the office of the
Indenture Trustee’s agent appointed for such purposes located in The City of New York.



     The Issuer will pay interest on overdue installments of interest at the Class [B/C/D] Note
Interest Rate to the extent lawful.



     The Notes may be redeemed, in whole but not in part, in the manner and to the extent described
in the Indenture and the Sale and Servicing Agreement.



     The transfer of this Note is subject to the restrictions on transfer specified on the face of
this Note and to the other limitations set forth in the Indenture. Subject to the satisfaction of
such restrictions and limitations, the transfer of this Note may be registered on the Note Register
upon surrender of this Note for registration of transfer at the office or agency designated by the
Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Indenture Trustee duly executed by, the Noteholder of this
Note or such Noteholder’s attorney duly authorized in writing, with such signature guaranteed by an
“eligible guarantor institution” meeting the requirements of the Note Registrar, and thereupon one
or more new Notes of the same Class in authorized denominations and in the same aggregate principal
amount will be issued to the designated transferee or transferees. No service charge will be
charged for any registration of transfer or exchange of this Note, but the transferor may



B-4









 




be required to pay an amount sufficient to cover any tax or other governmental charge that may
be imposed in connection with any such registration of transfer or exchange.




     Each Noteholder, by its acceptance of a Note, covenants and agrees that no recourse may be
taken, directly or indirectly, with respect to the obligations of the Issuer, the Owner Trustee or
the Indenture Trustee on the Notes or under the Indenture or any certificate or other writing
delivered in connection with the Notes and the Indenture, against (i) the Indenture Trustee or the
Owner Trustee, each in its individual capacity, (ii) any holder of a beneficial interest in the
Issuer, (iii) any partner, owner, beneficiary, agent, officer, director, employee or agent of the
Indenture Trustee or the Owner Trustee, each in its individual capacity, or (iv) any holder of a
beneficial interest in the Owner Trustee or the Indenture Trustee, each in its individual capacity,
except as any such Person may have agreed.



     The obligations of the Issuer under the Indenture are solely the obligations of the Issuer and
will not represent any obligation or interest in any assets of the Depositor. Each Noteholder, by
its acceptance of a Note, acknowledges and agrees that it has no right, title or interest in or to
any Other Assets of the Depositor. To the extent that, notwithstanding the agreements and
provisions contained in the preceding sentence, such Noteholder either (i) asserts an interest or
claim to, or benefit from, Other Assets, or (ii) is deemed to have any such interest, claim to, or
benefit in or from Other Assets, whether by operation of law, legal process, pursuant to insolvency
laws or otherwise (including by virtue of Section 1111(b) of the Bankruptcy Code or any successor
provision having similar effect under the Bankruptcy Code), then such Noteholder further
acknowledges and agrees that any such interest, claim or benefit in or from Other Assets is and
will be expressly subordinated to the indefeasible payment in full of the other obligations and
liabilities, which, under the relevant documents relating to the securitization or conveyance of
such Other Assets, are entitled to be paid from, entitled to the benefits of, or otherwise secured
by such Other Assets (whether or not any such entitlement or security interest is legally perfected
or otherwise entitled to a priority of distributions or application under applicable law, including
insolvency laws, and whether or not asserted against the Depositor), including the payment of
post-petition interest on such other obligations and liabilities.



     THIS SUBORDINATION AGREEMENT WILL BE DEEMED A SUBORDINATION AGREEMENT WITHIN THE MEANING OF
SECTION 510(a) OF THE BANKRUPTCY CODE.



     Each Noteholder, by acceptance of a Note, covenants and agrees by accepting the benefits of
the Indenture that such Noteholder will not institute against the Depositor or the Issuer, or join
in any institution against the Depositor or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any federal or State bankruptcy or similar
law in connection with any obligations relating to the Notes, the Indenture or any of the other
Transaction Documents.



     The Issuer has entered into the Indenture and this Note is issued with the intention that, for
federal, State, and local income and franchise tax purposes, Notes that are owned by a Person other
than Ford Credit or its Affiliates will qualify as indebtedness of the Issuer secured by the
Collateral. Each Noteholder, by its acceptance of a Note, will be deemed to agree to treat the



B-5









 




Notes for federal, State and local income, single business and franchise tax purposes as
indebtedness of the Issuer.




     With respect to any date of determination, the Issuer, the Indenture Trustee and any agent of
the Issuer or the Indenture Trustee may treat the Person in whose name this Note is registered as
of such date as the owner of such Note for the purpose of receiving payments of principal of and
any interest on such Note and for all other purposes, and none of the Issuer, the Indenture Trustee
or any agent of the Issuer or the Indenture Trustee will recognize notice to the contrary.



     The Indenture permits, with certain exceptions requiring the consent of all adversely affected
Noteholders as provided in the Indenture, the amendment of the Indenture and the modification of
the rights and obligations of the Issuer and the rights of the Noteholders under the Indenture by
the Issuer with the consent of the Noteholders of Notes evidencing not less than a majority of the
Note Balance of the Controlling Class. The Indenture also permits the Indenture Trustee to amend
or waive certain terms and conditions set forth in the Indenture without the consent of the
Noteholders provided certain conditions are satisfied. In addition, the Indenture contains
provisions permitting the Noteholders of Notes evidencing specified percentages of the Note Balance
of the Notes Outstanding or of the Controlling Class, on behalf of all Noteholders, to waive
compliance by the Issuer with certain provisions of the Indenture and certain defaults under the
Indenture and their consequences. Any such consent or waiver by the Noteholder of this Note will
be conclusive and binding upon such Noteholder and upon all future Noteholders of this Note and of
any Note issued upon the registration of transfer of this Note or in exchange of this Note or in
lieu of this Note whether or not notation of such consent or waiver is made upon this Note.



     The term “Issuer”, as used in this Note, includes any successor to the Issuer under the
Indenture.



     The Issuer is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Indenture Trustee and the Noteholders under the
Indenture.



     The Notes are issuable only in registered form in denominations as provided in the Indenture,
subject to certain limitations set forth in the Indenture.



     THIS NOTE AND THE INDENTURE WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK.



     No reference in this Note to the Indenture, and no provision of this Note or of the Indenture,
will alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Note at the time, place and rate, and in the coin or currency
prescribed in this Note.



     Anything in this Note to the contrary notwithstanding, except as provided in the Transaction
Documents, none of The Bank of New York Mellon, in its individual capacity, U.S. Bank Trust
National Association, in its individual capacity, any owner of a beneficial interest in the Issuer,
or any of their respective partners, beneficiaries, agents, officers, directors, employees or
successors or assigns will be personally liable for, nor will recourse be had to any of them for,



B-6









 




the payment of principal or of interest on this Note or performance of, or omission to
perform, any of the covenants, obligations or indemnifications contained in the Indenture. The
Noteholder of this Note, by its acceptance of this Note, agrees that, except as provided in the
Transaction Documents, in the case of an Event of Default under the Indenture, the Noteholder has
no claim against any of the foregoing for any deficiency, loss or claim therefrom;
provided, however, that nothing contained in this Note will be taken to prevent
recourse to, and enforcement against, the assets of the Issuer for any and all liabilities,
obligations and undertakings contained in the Indenture or in this Note.




     Unless the certificate of authentication on this Note has been executed by the Indenture
Trustee whose name appears below by manual signature, this Note will not be entitled to any benefit
under the Indenture, or be valid or obligatory for any purpose.



[Remainder of Page Intentionally Left Blank]






B-7









 








     The Issuer has caused this instrument to be signed, manually or in facsimile, by its
Responsible Person, as of the date set forth below.



Date: [__________]




	 	 	 	 	 
	 	FORD CREDIT AUTO OWNER TRUST 2011-B

 	 
	 	BY:  	U.S. BANK TRUST NATIONAL ASSOCIATION,
 	 
	 	 	not in its individual capacity but solely as Owner 	 
	 	 	Trustee of Ford Credit Auto Owner Trust 2011-B 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Responsible Person 	 
	 	 	 	 
	 



TRUSTEE’S CERTIFICATE OF AUTHENTICATION





     This is one of the Class [B/C/D] Notes designated above and referred to in the Indenture.



Date: [__________]




	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON,

not in its individual capacity but

solely as Indenture Trustee

 	 
	 	By:  	 	 
	 	 	Responsible Person 	 
	 	 	 	 



B-8









 






	 	 	 	 	 



ASSIGNMENT





     Social Security or taxpayer I.D. or other identifying number of assignee:


FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:




	 	 	 	 	 
	
 	 	 
	(name and address of assignee) 	 	 
	 	 	 


the within Note and all rights under said Note, and hereby irrevocably constitutes and appoints
_________________, attorney, to transfer said Note on the books kept for registration of said, with
full power of substitution in the premises.




	 	 	 

	Dated:                                         
 

	 	                                                                       
                        */

Signature Guaranteed
	 
	 	 
	 

	 	*/








 




			
	*/	 	NOTICE: The signature to this assignment must correspond with the name of the registered owner
as it appears on the face of the within Note in every particular, without alteration, enlargement
or any change whatever. Such signature must be guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, which requirements include membership or
participation in the Securities Transfer Agents Medallion Program or such other “signature
guarantee program” as may be determined by the Note Registrar in addition to, or in substitution
for, the Securities Transfer Agents Medallion Program, all in accordance with the Exchange
Act.




B-9









 










Schedule A




Schedule of Receivables




Delivered on CD Rom to the Indenture Trustee at the Closing




SA-1