Exhibit 10.5


 


ASSET REPRESENTATIONS REVIEW AGREEMENT


 


among


 


HONDA AUTO RECEIVABLES 2020-1 OWNER TRUST,

as Issuer,


 


AMERICAN HONDA FINANCE CORPORATION,

as Sponsor and Servicer


 


and


 


CLAYTON FIXED INCOME SERVICES LLC,


 


as Asset Representations Reviewer


 


Dated as of February 26, 2020


 






    


     


    

 


	 	TABLE OF CONTENTS	 
	 	 	 
	 	 	Page
	 	 	
	ARTICLE I	USAGE AND DEFINITIONS	1
	Section 1.1.	Usage and Definitions	1
	Section 1.2.	Additional Definitions	2
	ARTICLE II	ENGAGEMENT OF ASSET REPRESENTATIONS REVIEWER	2
	Section 2.1.	Engagement; Acceptance	2
	Section 2.2.	Confirmation of Scope	2
	ARTICLE III	ASSET REPRESENTATIONS REVIEW PROCESS	3
	Section 3.1.	Review Notices	3
	Section 3.2.	Identification of Subject Receivables	3
	Section 3.3.	Review Materials	3
	Section 3.4.	Performance of Reviews	3
	Section 3.5.	Review Reports	4
	Section 3.6.	Limitations on Review Obligations	5
	ARTICLE IV	ASSET REPRESENTATIONS REVIEWER	5
	Section 4.1.	Representations and Warranties	5
	Section 4.2.	Covenants	6
	Section 4.3.	Fees, Expenses and Indemnities	7
	Section 4.4.	Limitation on Liability	7
	Section 4.5.	Indemnification by Asset Representations Reviewer	8
	Section 4.6.	Indemnification of Asset Representations Reviewer	8
	Section 4.7.	Inspections of Asset Representations Reviewer	9
	Section 4.8.	Delegation of Obligations	9
	Section 4.9.	Confidential Information	9
	Section 4.10.	Personally Identifiable Information	11
	ARTICLE V	RESIGNATION AND REMOVAL; SUCCESSOR ASSET REPRESENTATIONS REVIEWER	13
	Section 5.1.	Eligibility Requirements for Asset Representations Reviewer	13
	Section 5.2.	Resignation and Removal of Asset Representations Reviewer	13
	Section 5.3.	Successor Asset Representations Reviewer	13
	Section 5.4.	Merger, Consolidation or Succession	14
	ARTICLE VI	OTHER AGREEMENTS	14
	Section 6.1.	Independence of Asset Representations Reviewer	14
	Section 6.2.	No Petition	14
	Section 6.3.	Limitation of Liability of Owner Trustee	15




 






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	 	TABLE OF CONTENTS	 
	 	(continued)	 
	 	 	 
	 	 	Page
	 	 	 
	Section 6.4.	Termination of Agreement	15
	ARTICLE VII	MISCELLANEOUS PROVISIONS	15
	Section 7.1.	Amendments	15
	Section 7.2.	Assignment; Benefit of Agreement; Third Party Beneficiaries	15
	Section 7.3.	Notices	16
	Section 7.4.	Governing Law; Submission to Jurisdiction; Waiver of Jury Trial	16
	Section 7.5.	No Waiver; Remedies	17
	Section 7.6.	Severability	17
	Section 7.7.	Headings	17
	Section 7.8.	Counterparts	17
	 	 	 
	Schedule A	Representations and Warranties, Review Materials and Tests	 



 






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ASSET REPRESENTATIONS REVIEW AGREEMENT,
dated as of February 26, 2020 (this “Agreement”), among HONDA AUTO RECEIVABLES 2020-1 OWNER TRUST, a Delaware
statutory trust, as Issuer (the “Issuer”), AMERICAN HONDA FINANCE CORPORATION, a California Corporation (“AHFC”),
as Sponsor and Servicer, and CLAYTON FIXED INCOME SERVICES LLC, a Delaware limited liability company, as Asset Representations
Reviewer (the “Asset Representations Reviewer”).


 


BACKGROUND


 


WHEREAS, in the regular course of its business,
AHFC acquires certain motor vehicle retail installment sale contracts secured by new and used automobiles (including light-duty
trucks) from motor vehicle dealers.


 


WHEREAS, in connection with a securitization
transaction sponsored by AHFC, AHFC sold a pool of Receivables consisting of retail installment sale contracts to American Honda
Receivables, LLC (the “Depositor”), who sold them to the Issuer.


 


WHEREAS, the Issuer has granted a security
interest in the pool of Receivables to the Indenture Trustee, for the benefit of the Holders of Notes, as security for the Notes
issued by the Issuer under the Indenture.


 


WHEREAS, the Issuer desires to engage the
Asset Representations Reviewer to perform reviews of certain Receivables for compliance with the representations and warranties
made by AHFC about the Receivables in the pool.


 


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


 


ARTICLE
I

USAGE AND DEFINITIONS


 


Section 1.1.         
Usage and Definitions. (a) Except as otherwise specified herein or if the context may otherwise require, capitalized
terms not defined in this Agreement shall have the respective meanings assigned such terms set forth in Appendix A to the Sale
and Servicing Agreement, dated as of the date hereof (the “Sale and Servicing Agreement”), by and among the
Depositor, as seller, AHFC, as servicer, RPA seller and sponsor, and Honda Auto Receivables 2020-1 Owner Trust, as issuer.


 


(b)              
With respect to all terms in this Agreement, the singular includes the plural and the plural the singular; words importing
any gender include the other genders; references to “writing” include printing, typing, lithography and other means
of reproducing words in a visible form; references to agreements and other contractual instruments include all subsequent amendments,
amendments and restatements, and supplements thereto or changes therein entered into in accordance with their respective terms
and not prohibited by this Agreement; references to Persons include their permitted successors and assigns; references to laws
include their amendments and supplements, the rules and regulations thereunder and any successors thereto; the term “including”
means “including without limitation;” and the term “or” is not exclusive.


 






    


     


    

 


Section 1.2.         
Additional Definitions. The following terms have the meanings given below:


 


“Asset Review” means
the performance by the Asset Representations Reviewer of the testing procedures for each Test and each Subject Receivable according
to Section 3.4.


 


“Confidential Information”
has the meaning stated in Section 4.9(b).


 


“Information Recipients”
has the meaning stated in Section 4.9(a).


 


“Issuer PII” has the
meaning stated in Section 4.10(a).


 


“Personally Identifiable Information”
or “PII” has the meaning stated in Section 4.10(a).


 


“Review Fee” has the
meaning stated in Section 4.3(b).


 


“Review Materials” means,
for an Asset Review and a Subject Receivable, the documents and other materials for each Test listed under “Review Materials”
in Schedule A.


 


“Review Report” means,
for an Asset Review, the report of the Asset Representations Reviewer prepared according to Section 3.5.


 


“Test” has the meaning
stated in Section 3.4(a).


 


“Test Complete” has the
meaning stated in Section 3.4(c).


 


“Test Fail” has the meaning
stated in Section 3.4(a).


 


“Test Incomplete” has
the meaning stated in Section 3.4(a).


 


“Test Pass” has the meaning
stated in Section 3.4(a).


 


ARTICLE
II

ENGAGEMENT OF ASSET REPRESENTATIONS REVIEWER


 


Section 2.1.         
Engagement; Acceptance. The Issuer engages Clayton Fixed Income Services LLC to act as the Asset Representations
Reviewer for the Issuer. Clayton Fixed Income Services LLC accepts the engagement and agrees to perform the obligations of the
Asset Representations Reviewer on the terms in this Agreement.


 


Section 2.2.         
Confirmation of Scope. The parties confirm that the Asset Representations Reviewer is not responsible for determining
whether noncompliance with the representations or warranties constitutes a breach of the Basic Documents.


 






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ARTICLE
III

ASSET REPRESENTATIONS REVIEW PROCESS


 


Section 3.1.          Review
Notices. On receipt of a review notice from the Indenture Trustee in accordance with Section 7.05 of the Indenture, the
Asset Representations Reviewer will start an Asset Review. The Asset Representations Reviewer will have no obligation to
start an Asset Review until a review notice is received.


 


Section 3.2.         
Identification of Subject Receivables. Within ten (10) Business Days after receipt of a review notice, the Servicer
will deliver to the Asset Representations Reviewer a list of the Subject Receivables.


 


Section 3.3.         
Review Materials.


 


(a)              
Access to Review Materials. The Servicer will give the Asset Representations Reviewer access to the Review Materials
for all of the Subject Receivables within sixty (60) calendar days after receipt of the review notice in one or more of the following
ways in the Servicer’s reasonable discretion: (i) by electronic posting of Review Materials to a password-protected website
to which the Asset Representations Reviewer has access, (ii) by providing originals or photocopies of documents relating to the
Subject Receivables at one of the properties of the Servicer or (iii) in another manner agreed by the Servicer and the Asset Representations
Reviewer. The Servicer may redact or remove PII from the Review Materials so long as all information in the Review Materials necessary
for the Asset Representations Reviewer to complete the Asset Review remains intact and unchanged.


 


(b)              
Missing or Insufficient Review Materials. The Asset Representations Reviewer will review the Review Materials to
determine if any Review Materials are missing or insufficient for the Asset Representations Reviewer to perform any Test. If the
Asset Representations Reviewer reasonably determines that any of the Review Materials are missing or insufficient for the Asset
Representations Reviewer to perform any Test, the Asset Representations Reviewer will notify the Servicer promptly, and in any
event no less than twenty (20) calendar days before completing the Review, and the Servicer will use reasonable efforts to provide
the Asset Representations Reviewer access to such missing Review Materials or other documents or information to correct the insufficiency
within fifteen (15) calendar days. If the missing or insufficient Review Materials have not been provided by the Servicer within
sixty (60) calendar days, the parties agree that the Subject Receivable will have a Test Incomplete for the related Test(s) and
the Review Report will indicate the reason for the Test Incomplete.


 


Section 3.4.         
Performance of Reviews.


 


(a)              
Test Procedures. For an Asset Review, the Asset Representations Reviewer will perform for each Subject Receivable
the procedures listed under “Tests” in Schedule A for each representation and warranty (each, a “Test”),
using the Review Materials listed for each such Test in Schedule A. For each Test and Subject Receivable, the Asset Representations
Reviewer will determine in its reasonable judgment if the Test has been satisfied (a “Test Pass”), or if the
Test has not been satisfied (a “Test Fail”), or if the Test could not be concluded as a result of missing or
incomplete Review Materials (a “Test Incomplete”). The Asset Representations Reviewer will use such determination
for all Subject Receivables that are subject to the same Test.


 






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(b)               Review
Period. The Asset Representations Reviewer will complete the Review of all of the Subject Receivables within sixty (60)
calendar days after receiving access to the Review Materials under Section 3.3(a). However, if missing or additional
Review Materials are provided to the Asset Representations Reviewer under Section 3.3(b), the review period will be
extended for an additional thirty (30) calendar days.


 


(c)              
Completion of Review for Certain Subject Receivables. Following the delivery of the list of the Subject Receivables
and before the delivery of the Review Report by the Asset Representations Reviewer, the Servicer may notify the Asset Representations
Reviewer if a Subject Receivable is paid in full by the Obligor or purchased from the Issuer by the Sponsor, the Depositor or the
Servicer according to the applicable Basic Document. On receipt of notice, the Asset Representations Reviewer will immediately
terminate all Tests of such Receivables and the Review of such Receivables will be considered complete (a “Test Complete”).
In this case, the Review Report will indicate a Test Complete for the Receivables and the related reason.


 


(d)              
Previously Reviewed Receivable: Duplicative Tests. If any Subject Receivable was included in a prior Asset Review,
the Asset Representations Reviewer will not perform the same Tests on it, but will include the results of the previous Tests in
the Review Report for the current Asset Review.


 


(e)              
Duplicative Tests. If the same Test is required for more than one representation or warranty listed on Schedule
A, the Asset Representations Reviewer will only perform the Test once for each Review Receivable but will report the results
of the Test for each applicable representation or warranty on the Review Report.


 


(f)               
Termination of Review. If an Asset Review is in process and the Notes will be paid in full on the next Distribution
Date, the Servicer will notify the Asset Representations Reviewer and the Indenture Trustee no less than ten (10) calendar days
before that Distribution Date. On receipt of notice, the Asset Representations Reviewer will terminate the Asset Review immediately
and will have no obligation to deliver a Review Report.


 


Section 3.5.         
Review Reports. (a) Within ten (10) calendar days after the end of the Asset Review period under Section 3.4(b),
the Asset Representations Reviewer will deliver to the Issuer, the Sponsor, the Servicer and the Indenture Trustee a Review Report
indicating for each Subject Receivable whether there was a Test Pass or a Test Fail for each Test, or whether the Subject Receivable
was a Test Complete and the related reason. The Review Report will contain a summary of the findings and conclusions of the Asset
Representations Reviewer with respect to the Asset Review to be included in the Issuer’s Form 10-D report for the Collection
Period in which the Review Report is received. The Asset Representations Reviewer will ensure that the Review Report does not contain
any Issuer PII. On the reasonable request of the Servicer or the Indenture Trustee, acting solely on behalf of the Noteholders,
the Asset Representations Reviewer will provide additional details on the Test results.


 


(b)               Questions
About Review. The Asset Representations Reviewer will make appropriate personnel available to respond in writing to
written questions or requests for clarification of any Review Report from the Servicer or the Indenture Trustee, acting
solely on behalf of the Noteholders, until the earlier of (i) payment in full of the Notes and (ii) one year after the
delivery of the Review Report. The Asset Representations Reviewer will have no obligation to respond to questions or requests
for clarification from Noteholders or any Person other than the Servicer or the Indenture Trustee, acting solely on behalf of
the Noteholders, and will direct such Persons to submit written requests to the Servicer.


 






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Section 3.6.         
Limitations on Review Obligations.


 


(a)              
Review Process Limitations. The Asset Representations Reviewer will have no obligation:


 


(i)                
to determine whether a Delinquency Trigger has occurred or whether the required percentage of Noteholders has voted to direct
an Asset Review under the Indenture, and may rely on the information in any review notice delivered by the Indenture Trustee;


 


(ii)             
to determine which Receivables are subject to an Asset Review, and may rely on the lists of Subject Receivables provided
by the Servicer;


 


(iii)           
to obtain or confirm the validity of the Review Materials and no liability for any errors in the Review Materials and may
rely on the accuracy and completeness of the Review Materials;


 


(iv)            
to obtain missing or insufficient Review Materials from any party or any other source; or


 


(v)              
to take any action or cause any other party to take any action under any of the Basic Documents or otherwise to enforce
any remedies against any Person for breaches of representations or warranties about the Subject Receivables.


 


ARTICLE
IV

ASSET REPRESENTATIONS REVIEWER


 


Section 4.1.         
Representations and Warranties. The Asset Representations Reviewer represents and warrants to the Issuer as of the
Closing Date:


 


(a)              
Organization and Qualification. The Asset Representations Reviewer is duly organized and validly existing as a limited
liability company in good standing under the laws of the State of Delaware. The Asset Representations Reviewer is qualified as
a foreign limited liability company 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 the qualification, license or approval,
unless the failure to obtain the qualifications, licenses or approvals would not reasonably be expected to have a material adverse
effect on the Asset Representations Reviewer’s ability to perform its obligations under this Agreement.


 


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


 






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(c)              
No Conflicts and No Violation. The completion of the transactions contemplated by this Agreement and the performance
of the Asset Representations Reviewer’s obligations under this Agreement will not (A) conflict with, or be a breach or default
under, any indenture, loan agreement, guarantee or other agreement or instrument under which the Asset Representations Reviewer
is a debtor or guarantor, (B) result in the creation or imposition of any Lien on any of the properties or assets of the Asset
Representations Reviewer under the terms of any indenture, loan agreement, guarantee or other agreement or instrument, (C) violate
the organizational documents of the Asset Representations Reviewer or (D) violate any law or any order, rule or regulation of a
federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the
Asset Representations Reviewer or its properties that applies to the Asset Representations Reviewer, which, in each case, would
reasonably be expected to have a material adverse effect on the Asset Representations Reviewer’s ability to perform its obligations
under this Agreement.


 


(d)              
No Proceedings. There are no proceedings or investigations pending or, to the knowledge of the Asset Representations
Reviewer, threatened in writing before a federal or State court, regulatory body, administrative agency or other governmental instrumentality
having jurisdiction over the Asset Representations Reviewer or its properties (A) asserting the invalidity of this Agreement, (B)
seeking to prevent the completion of the transactions contemplated by this Agreement or (C) seeking any determination or ruling
that would reasonably be expected to have a material adverse effect on the Asset Representations Reviewer’s ability to perform
its obligations under, or the validity or enforceability of, this Agreement.


 


(e)              
Eligibility. The Asset Representations Reviewer meets the eligibility requirements in Section 5.1 and will
notify the Issuer and the Servicer promptly if it no longer meets, or reasonably expects that it will no longer meet, the eligibility
requirements in Section 5.1.


 


Section 4.2.         
Covenants. The Asset Representations Reviewer covenants and agrees that:


 


(a)              
Eligibility. It will notify the Issuer and the Servicer promptly if it no longer meets the eligibility requirements
in Section 5.1.


 


(b)              
Review Systems; Personnel. It will maintain business process management and/or other systems necessary to ensure
that it can perform each Test and, on execution of this Agreement, will load each Test into these systems. The Asset Representations
Reviewer will ensure that these systems allow for each Subject Receivable and the related Review Materials to be individually tracked
and stored as contemplated by this Agreement. The Asset Representations Reviewer will maintain adequate staff that is properly
trained to conduct Asset Reviews as required by this Agreement.


 


(c)               Maintenance
of Review Materials. It will maintain copies of any Review Materials, Review Reports and other documents relating to an
Asset Review, including internal correspondence and work papers, for a period of two years after the termination of this
Agreement or repayment of the Notes in full, whichever comes first.


 






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Section 4.3.         
Fees, Expenses and Indemnities.


 


(a)              
Annual Fee. The Sponsor will pay the Asset Representations Reviewer, as compensation for agreeing to act as the Asset
Representations Reviewer under this Agreement, an annual fee equal to $5,000. The annual fee will be paid as agreed in Section
4.3(d) by the Sponsor until this Agreement is terminated; provided, that in the year in which all Notes are paid in
full, the annual fee shall be reduced pro rata by an amount equal to the days of the year in which the Notes are no longer outstanding.


 


(b)              
Review Fee. Following the completion of an Asset Review and the delivery to the Indenture Trustee, the Sponsor and
the Servicer of the Review Report, or the termination of an Asset Review according to Section 3.4(e), and the delivery to
the Sponsor of a detailed invoice, the Asset Representations Reviewer will be entitled to a fee of up to $250 for each Account
containing a Subject Receivable (the “Review Fee”). However, no Review Fee will be charged for any Tests that
were performed in a prior Asset Representations Review or for any Asset Representations Review in which no Tests were completed
prior to the Asset Representations Reviewer being notified of a termination of the Asset Representations Review in accordance with
Section 3.4(e). The Sponsor will pay the Review Fee to the Asset Representations Reviewer in accordance with the terms of
Section 4.3(d) of this Agreement. If an Asset Review is terminated according to Section 3.4(e), the Asset Representations
Reviewer must submit its invoice for the Review Fee for the terminated Asset Review no later than five Business Days before the
final Payment Date to be reimbursed no later than the final Payment Date.


 


(c)              
Reimbursement of Travel Expenses. If the Servicer provides access to the Review Materials at one of its properties,
the Sponsor will reimburse the Asset Representations Reviewer for its reasonable travel expenses incurred in connection with the
Asset Review upon receipt of a detailed invoice.


 


(d)              
Payment of Fees and Indemnities. The Asset Representations Reviewer shall submit reasonably detailed invoices to
the Sponsor for any amounts owed to it under this Agreement. To the extent not paid by the Sponsor within sixty (60) calendar days
following the receipt of a detailed invoice, the fees provided for in this Section 4.3 and the indemnities provided for
in Section 4.6(a) shall be paid by the Issuer pursuant to Section 4.06(c) of the Sale and Servicing Agreement; provided,
that prior to any such payment pursuant to the Sale and Servicing Agreement, the Asset Representations Reviewer shall notify the
Sponsor in writing that such payments have been outstanding for at least sixty (60) calendar days. For the avoidance of doubt,
to the extent that such owed amounts are not paid in full by the Sponsor or any other party, upon receipt of a detailed invoice,
the Asset Representations Reviewer shall be entitled to payment by the Sponsor of incurred but otherwise unpaid amounts.


 


Section 4.4.         
Limitation on Liability. The Asset Representations Reviewer will not be liable to any Person for any action taken,
or not taken, in good faith under this Agreement or for errors in judgment. However, the Asset Representations Reviewer will be
liable for its willful misconduct, bad faith, breach of this Agreement or negligence in performing its obligations under this
Agreement. In no event will the Asset Representations Reviewer be liable for special, indirect or consequential losses or damages
(including lost profit), even if the Asset Representations Reviewer has been advised of the likelihood of the loss or damage and
regardless of the form of action.


 






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Section 4.5.         
Indemnification by Asset Representations Reviewer. The Asset Representations Reviewer will indemnify each of the
Issuer, the Depositor, the Servicer, the Sponsor, the Owner Trustee and the Indenture Trustee (each, an “Indemnified Party”)
and their respective directors, officers, employees and agents for all costs, expenses, losses, damages and liabilities (including
any reasonable legal fees and expenses incurred by an Indemnified Party in connection with the enforcement of any indemnification
or other obligation of the Asset Representations Reviewer) resulting from (a) the willful misconduct, bad faith or negligence of
the Asset Representations Reviewer in performing its obligations under this Agreement, (b) the Asset Representations Reviewer’s
failure to comply with the requirements of applicable federal, state or local laws and regulations in the performance of its duties
hereunder or (c) the Asset Representations Reviewer’s breach of any of its representations, warranties, covenants or other
obligations in this Agreement. The Asset Representations Reviewer’s obligations under this Section 4.5 will survive
the termination of this Agreement, the termination of the Issuer and the permitted resignation or removal of the Asset Representations
Reviewer.


 


Section 4.6.         
Indemnification of Asset Representations Reviewer.


 


(a)              
Indemnification. The Sponsor will indemnify the Asset Representations Reviewer and its officers, directors, employees
and agents (each, an “Indemnified Person”), for all costs, expenses, losses, damages and liabilities resulting
from the performance of the Asset Representations Reviewer’s obligations under this Agreement (including the costs and expenses
of defending itself against any loss, damage or liability), but excluding any cost, expense, loss, damage or liability resulting
from (i) the Asset Representations Reviewer’s willful misconduct, bad faith or negligence, (ii) the Asset Representations
Reviewer’s failure to comply with the requirements of applicable federal, state and local laws and regulations in the performance
of its duties hereunder or (iii) the Asset Representations Reviewer’s breach of any of its representations, warranties, covenants
or other obligations in this Agreement.


 


(b)              
Proceedings. Promptly on receipt by an Indemnified Person of notice of a Proceeding against it, the Indemnified Person
will, if a claim is to be made under Section 4.6(a), notify the Sponsor of the Proceeding. The Sponsor may participate in
and assume the defense and settlement of a Proceeding at its expense. If the Sponsor notifies the Indemnified Person of its intention
to assume the defense of the Proceeding with counsel reasonably satisfactory to the Indemnified Person, and the Sponsor will not
be liable for legal expenses of counsel to the Indemnified Person unless there is a conflict between the interests of the Sponsor,
and an Indemnified Person. If there is a conflict, the Sponsor will pay for the reasonable fees and expenses of separate counsel
to the Indemnified Person. No settlement of a Proceeding may be made without the approval of the Sponsor and the Indemnified Person,
which approval will not be unreasonably withheld.


 






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(c)              
Survival of Obligations. The Issuer’s obligations under this Section 4.6 will survive the permitted
resignation or removal of the Asset Representations Reviewer and the termination of this Agreement.


 


(d)              
Repayment. If the Sponsor makes any payment under this Section 4.6 and the Indemnified Person later collects
any of the amounts for which the payments were made to it from others, the Indemnified Person will promptly repay the amounts to
the Sponsor.


 


Section 4.7.         
Inspections of Asset Representations Reviewer. The Asset Representations Reviewer agrees that, with reasonable prior
notice not more than once during any year, it will permit authorized representatives of the Issuer, the Servicer or the Sponsor,
during the Asset Representations Reviewer’s normal business hours, to examine and review the books of account, records, reports
and other documents and materials of the Asset Representations Reviewer relating to (a) the performance of the Asset Representations
Reviewer’s obligations under this Agreement, (b) payments of fees and expenses of the Asset Representations Reviewer for
its performance and (c) a claim made by the Asset Representations Reviewer under this Agreement. In addition, the Asset Representations
Reviewer will permit the Issuer’s, the Servicer’s or the Sponsor’s representatives to make copies and extracts
of any of those documents and to discuss them with the Asset Representations Reviewer’s officers and employees. Each of the
Issuer, the Servicer and the Sponsor will, and will cause its authorized representatives to, hold in confidence any proprietary
confidential information of the Asset Representations Reviewer except if disclosure may be required by law or if the Issuer, the
Servicer or the Sponsor reasonably determines that it is required to make the disclosure under this Agreement or the other Basic
Documents. Except as described in Section 4.2(c), the Asset Representations Reviewer will maintain all relevant books, records,
reports and other documents and materials for a period of at least two years after the termination of its obligations under this
Agreement.


 


Section 4.8.         
Delegation of Obligations. The Asset Representations Reviewer may not delegate or subcontract its obligations under
this Agreement to any Person without the consent of the parties to this Agreement.


 


Section 4.9.         
Confidential Information.


 


(a)              
Treatment. The Asset Representations Reviewer agrees to hold and treat Confidential Information given to it under
this Agreement in confidence and under the terms and conditions of this Section 4.9, and will implement and maintain safeguards
to further assure the confidentiality of the Confidential Information. The Confidential Information will not, without the prior
consent of the Issuer, the Sponsor and the Servicer, be disclosed or used by the Asset Representations Reviewer, or its officers,
directors, employees, agents, representatives or affiliates, including legal counsel (collectively, the “Information Recipients”)
other than for the purposes of performing Asset Reviews of Subject Receivables or performing its obligations under this Agreement.
The Asset Representations Reviewer agrees that it will not, and will cause its Affiliates to not (i) purchase or sell securities
issued by AHFC or its Affiliates or special purpose entities on the basis of Confidential Information or (ii) use the Confidential
Information for the preparation of research reports, newsletters or other publications or similar communications.


 






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(b)              
Definition. “Confidential Information” means oral, written and electronic materials (irrespective
of its source or form of communication) furnished before, on or after the date of this Agreement to the Asset Representations Reviewer
for the purposes contemplated by this Agreement, including:


 


(i)                
lists of Subject Receivables and any related Review Materials;


 


(ii)             
origination and servicing guidelines, policies and procedures and form contracts; and


 


(iii)           
notes, analyses, compilations, studies or other documents or records prepared by the Sponsor or the Servicer, which contain
information supplied by or on behalf of the Sponsor or the Servicer or their representatives.


 


However, Confidential Information will not include information
that (A) is or becomes generally available to the public other than as a result of disclosure by the Information Recipients, (B)
was available to, or becomes available to, the Information Recipients on a non-confidential basis from a Person or entity other
than the Issuer, the Sponsor or the Servicer before its disclosure to the Information Recipients who, to the knowledge of the Information
Recipient is not bound by a confidentiality agreement with the Issuer, the Sponsor or the Servicer and is not prohibited from transmitting
the information to the Information Recipients, (C) is independently developed by the Information Recipients without the use of
the Confidential Information, as shown by the Information Recipients’ files and records or other evidence in the Information
Recipients’ possession or (D) the Issuer, the Sponsor or the Servicer provides permission to the applicable Information Recipients
to release.


 


(c)              
Protection. The Asset Representations Reviewer will use reasonable measures to protect the secrecy of and avoid disclosure
and unauthorized use of Confidential Information, including those measures that it takes to protect its own confidential information
and not less than a reasonable standard of care. The Asset Representations Reviewer acknowledges that Personally Identifiable Information
is also subject to the additional requirements in Section 4.9.


 


(d)              
Disclosure. If the Asset Representations Reviewer is required by applicable law, regulation, rule or order issued
by an administrative, governmental, regulatory or judicial authority to disclose part of the Confidential Information, it may disclose
the Confidential Information. However, before a required disclosure, the Asset Representations Reviewer, if permitted by law, regulation,
rule or order, will use its reasonable efforts to provide the Issuer, the Sponsor and the Servicer with notice of the requirement
and will cooperate, at the Sponsor’s expense, in the Issuer’s and the Sponsor’s pursuit of a proper protective
order or other relief for the disclosure of the Confidential Information. If the Issuer or the Sponsor is unable to obtain a protective
order or other proper remedy by the date that the information is required to be disclosed, the Asset Representations Reviewer will
disclose only that part of the Confidential Information that it is advised by its legal counsel it is legally required to disclose.


 


(e)              
Responsibility for Information Recipients. The Asset Representations Reviewer will be responsible for a breach of
this Section 4.9 by its Information Recipients.


 






    10


     


    

 


(f)               
Violation. The Asset Representations Reviewer agrees that a violation of this Agreement may cause irreparable injury
to the Issuer, the Sponsor and the Servicer and the Issuer, the Sponsor and the Servicer may seek injunctive relief in addition
to legal remedies. If an action is initiated by the Issuer or the Servicer to enforce this Section 4.9, the prevailing party
will be reimbursed for its fees and expenses, including reasonable attorney’s fees, incurred for the enforcement.


 


Section 4.10.     
Personally Identifiable Information.


 


(a)              
Definitions. “Personally Identifiable Information” or “PII” means information
in any format about an identifiable individual, including, name, address, phone number, e-mail address, account number(s), identification
number(s), vehicle identification number(s) or “VIN(s)”, any other actual or assigned attribute associated with or
identifiable to an individual and any information that when used separately or in combination with other information could identify
an individual. “Issuer PII” means PII furnished by the Issuer, the Servicer or their Affiliates to the Asset
Representations Reviewer and PII developed or otherwise collected or acquired by the Asset Representations Reviewer in performing
its obligations under this Agreement.


 


(b)              
Use of Issuer PII. The Issuer does not grant the Asset Representations Reviewer any rights to Issuer PII. None of
the Issuer, the Sponsor or the Servicer intend to share, provide or supply any Issuer PII to the Asset Representations Reviewer.
However, if the Asset Representations Reviewer receives any Issuer PII, the Asset Representations Reviewer will promptly (i) notify
the Servicer and (ii) delete and destroy such Issuer PII in accordance with Section 4.10(c). Notwithstanding the foregoing,
the Asset Representations Reviewer must comply with all laws applicable to PII, Issuer PII and the Asset Representations Reviewer’s
business, including any legally required codes of conduct, including those relating to privacy, security and data protection. The
Asset Representations Reviewer will implement and maintain reasonable and appropriate practices, procedures and systems, including
administrative, technical and physical safeguards designed to (i) protect the security, confidentiality and integrity of Issuer
PII, (ii) ensure against anticipated threats or hazards to the security or integrity of Issuer PII, (iii) protect against unauthorized
access to or use of Issuer PII and (iv) otherwise comply with its obligations under this Agreement. These safeguards include a
written data security plan, employee training, information access controls, restricted disclosures, systems protections (e.g.,
intrusion protection, data storage protection and data transmission protection) and physical security measures.


 


(c)              
Additional Limitations. In addition to the use and protection requirements described in Section 4.10(b), the
Asset Representations Reviewer’s disclosure of Issuer PII is also subject to the following requirements:


 


(i)                 The
Asset Representations Reviewer will not disclose Issuer PII to its personnel or allow its personnel access to Issuer PII
except (A) for the Asset Representations Reviewer personnel who require Issuer PII to perform an Asset Review, (B) with the
prior consent of the Issuer or (C) as required by applicable law. When permitted, the disclosure of or access to Issuer PII
will be limited to the specific information necessary for the individual to complete the assigned task. The Asset
Representations Reviewer will inform personnel with access to Issuer PII of the confidentiality requirements in this
Agreement and train its personnel with access to Issuer PII on the proper use and protection of Issuer PII.


 


(ii)             
The Asset Representations Reviewer will not sell, disclose, provide or exchange Issuer PII with or to any third party without
the prior consent of the Issuer.


 






    11


     


    

 


(d)              
Notice of Breach. The Asset Representations Reviewer will notify the Issuer promptly in the event of an actual or
reasonably suspected security breach, unauthorized access, misappropriation or other compromise of the security, confidentiality
or integrity of Issuer PII and, where applicable, immediately take action to prevent any further breach.


 


(e)              
Return or Disposal of Issuer PII. Except where return or disposal is prohibited by applicable law, promptly on the
earlier of the completion of the Asset Review or the request of the Issuer, all Issuer PII in any medium in the Asset Representations
Reviewer’s possession or under its control will be (i) destroyed in a manner that prevents its recovery or restoration or
(ii) if so directed by the Issuer, returned to the Issuer without the Asset Representations Reviewer retaining any actual or recoverable
copies, in both cases, without charge to the Issuer. Where the Asset Representations Reviewer retains Issuer PII, the Asset Representations
Reviewer will limit the Asset Representations Reviewer’s further use or disclosure of Issuer PII to that required by applicable
law.


 


(f)               
Compliance; Modification. The Asset Representations Reviewer will cooperate with and provide information to the Issuer
regarding the Asset Representations Reviewer’s compliance with this Section 4.10. The Asset Representations Reviewer
and the Issuer agree to modify this Section 4.10 as necessary from time to time for either party to comply with applicable
law.


 


(g)              
Affiliates and Third Parties. If the Asset Representations Reviewer processes the PII of the Issuer’s Affiliates
or a third party when performing an Asset Review, and if such Affiliate or third party is identified to the Asset Representations
Reviewer, such Affiliate or third party is an intended third-party beneficiary of this Section 4.10, and this Agreement
is intended to benefit the Affiliate or third party. The Affiliate or third party will be entitled to enforce the PII related terms
of this Section 4.10 against the Asset Representations Reviewer as if each were a signatory to this Agreement.


 


(h)              
Audit of Asset Representations Reviewer. The Asset Representations Reviewer will permit the Issuer and its authorized
representatives to audit the Asset Representations Reviewer’s compliance with this Agreement during the Asset Representations
Reviewer’s normal business hours on reasonable advance notice to the Asset Representations Reviewer, and not more than once
during any year unless circumstances necessitate additional audits. The Issuer agrees to make reasonable efforts to schedule any
audit described in this Section 4.10 with the inspections described in Section 4.7. The Asset Representations Reviewer
will also permit the Issuer and its authorized representatives during normal business hours on reasonable advance written notice
to audit any service providers used by the Asset Representations Reviewer with the Sponsor’s prior written consent to fulfill
the Asset Representations Reviewer’s obligations under this Agreement.


 






    12


     


    

 


ARTICLE
V


RESIGNATION AND REMOVAL;

SUCCESSOR ASSET REPRESENTATIONS REVIEWER


 


Section 5.1.         
Eligibility Requirements for Asset Representations Reviewer. The Asset Representations Reviewer must be a Person
who (a) is not Affiliated with the Sponsor, the Depositor, the Servicer, the Indenture Trustee, the Owner Trustee or any of their
Affiliates and (b) was not, and is not Affiliated with a Person that was, engaged by the Sponsor or any Underwriter to perform
any due diligence on the Receivables prior to the Closing Date.


 


Section 5.2.         
Resignation and Removal of Asset Representations Reviewer.


 


(a)              
No Resignation of Asset Representations Reviewer. The Asset Representations Reviewer will not resign as Asset Representations
Reviewer unless (a) the Asset Representations Reviewer no longer meets the eligibility requirements in Section 5.1 or (b)
upon determination that the performance of its duties under this Agreement is no longer permissible under applicable law. The Asset
Representations Reviewer will notify the Issuer and the Servicer of its resignation as soon as practicable after it determines
it is required to resign and stating the resignation date and including an Opinion of Counsel supporting its determination.


 


(b)              
Removal of Asset Representations Reviewer. If any of the following events occur, the Sponsor, by notice to the Asset
Representations Reviewer, may remove the Asset Representations Reviewer and terminate its rights and obligations under this Agreement:


 


(i)                
the Asset Representations Reviewer no longer meets the eligibility requirements in Section 5.1;


 


(ii)             
the Asset Representations Reviewer breaches of any of its representations, warranties, covenants or obligations in this
Agreement; or


 


(iii)           
an Insolvency Event of the Asset Representations Reviewer occurs.


 


(c)              
Notice of Resignation or Removal. The Sponsor will notify the Issuer, the Owner Trustee and the Indenture Trustee
of any resignation or removal of the Asset Representations Reviewer.


 


(d)              
Continue to Perform After Resignation or Removal. No resignation or removal of the Asset Representations Reviewer
will be effective, and the Asset Representations Reviewer will continue to perform its obligations under this Agreement, until
a successor Asset Representations Reviewer has accepted its engagement according to Section 5.3(b).


 


Section 5.3.         
Successor Asset Representations Reviewer.


 


(a)              
Engagement of Successor Asset Representations Reviewer. Following the resignation or removal of the Asset Representations
Reviewer, the Sponsor will appoint a successor Asset Representations Reviewer who meets the eligibility requirements of Section
5.1.


 






    13


     


    

 


(b)              
Effectiveness of Resignation or Removal. No resignation or removal of the Asset Representations Reviewer will be
effective until the successor Asset Representations Reviewer has executed and delivered to the Issuer and the Servicer an agreement
accepting its engagement and agreeing to perform the obligations of the Asset Representations Reviewer under this Agreement or
entered into a new agreement with the Issuer on substantially the same terms as this Agreement.


 


(c)              
Transition and Expenses. If the Asset Representations Reviewer resigns or is removed, the Asset Representations Reviewer
will cooperate with the Issuer and take all actions reasonably requested to assist the Issuer in making an orderly transition of
the Asset Representations Reviewer’s rights and obligations under this Agreement to the successor Asset Representations Reviewer.
The Asset Representations Reviewer will pay the reasonable expenses (including the fees and expenses of counsel) of transitioning
the Asset Representations Reviewer’s obligations under this Agreement and preparing the successor Asset Representations Reviewer
to take on such obligations on receipt of an invoice with reasonable detail of the expenses from the Issuer or the successor Asset
Representations Reviewer.


 


Section 5.4.         
Merger, Consolidation or Succession. Any Person (a) into which the Asset Representations Reviewer is merged or consolidated,
(b) resulting from any merger or consolidation to which the Asset Representations Reviewer is a party or (c) succeeding to the
business of the Asset Representations Reviewer, if that Person meets the eligibility requirements in Section 5.1, will be
the successor to the Asset Representations Reviewer under this Agreement. Such Person will execute and deliver to the Issuer and
the Servicer an agreement to assume the Asset Representations Reviewer’s obligations under this Agreement (unless the assumption
happens by operation of law).


 


ARTICLE
VI

OTHER AGREEMENTS


 


Section 6.1.         
Independence of Asset Representations Reviewer. The Asset Representations Reviewer will be an independent contractor
and will not be subject to the supervision of the Issuer, the Owner Trustee or the Indenture Trustee for the manner in which it
accomplishes the performance of its obligations under this Agreement. Unless authorized by the Issuer, the Owner Trustee, or the
Indenture Trustee, respectively, the Asset Representations Reviewer will have no authority to act for or represent the Issuer,
the Owner Trustee or the Indenture Trustee and will not be considered an agent of the Issuer, the Owner Trustee or the Indenture
Trustee. None of the Issuer, the Owner Trustee or the Indenture Trustee will be responsible for monitoring the performance of the
Asset Representations Reviewer or liable to any Person for the failure of the Asset Representations Reviewer to perform its obligations
hereunder. Nothing in this Agreement will make the Asset Representations Reviewer and any of the Issuer, the Owner Trustee or the
Indenture Trustee members of any partnership, joint venture or other separate entity or impose any liability as such on any of
them.


 


Section 6.2.         
No Petition. Each of the parties, by entering into this Agreement, agrees that, before the date that is one year
and one day (or, if longer, any applicable preference period) after payment in full of (a) all securities issued by the Depositor
or by a trust for which the Depositor was a depositor (including, without limitation, the Issuer) or (b) the Notes, it will not
start or pursue against, or join any other Person in starting or pursuing against (i) the Depositor or (ii) the Issuer, respectively,
any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other proceedings under any bankruptcy or
similar law. This Section 6.2 will survive the termination of this Agreement.


 






    14


     


    

 


Section 6.3.         
Limitation of Liability of Owner Trustee. This Agreement has been signed on behalf of the Issuer by The Bank of New
York Mellon not in its individual capacity but solely in its capacity as Owner Trustee of the Issuer. In no event will The Bank
of New York Mellon in its individual capacity be liable for the Issuer’s obligations under this Agreement. For all purposes
under this Agreement, the Owner Trustee will be subject to, and entitled to the benefits of, the Trust Agreement.


 


Section 6.4.         
Termination of Agreement. This Agreement will terminate, except for the obligations under Section 4.5 or as
otherwise stated in this Agreement, on the earlier of (a) the payment in full of all outstanding Notes and the satisfaction and
discharge of the Indenture and (b) the date the Issuer is terminated under the Trust Agreement.


 


ARTICLE
VII

MISCELLANEOUS PROVISIONS


 


Section 7.1.         
Amendments.


 


(a)              
This Agreement can be modified in a written document executed by the parties hereto without the consent of the Noteholders
or any other Person; provided, that, except with respect to amendments (i) to clarify an ambiguity, correct an error or correct
or supplement any term of this Agreement that may be defective or inconsistent with the other terms of this Agreement or to provide
for, or facilitate the acceptance of this Agreement by, a successor Asset Representations Reviewer or (ii) to convert or supplement
any provision in a manner consistent with the intent of this Agreement, either (a) such amendment shall not, as evidenced by an
opinion of counsel or officer’s certificate, materially and adversely affect the interests of the holders of any outstanding
Note or (b) the Rating Agency Condition is satisfied with respect to such amendment. With respect to any amendment for which clauses
(a) or (b) of the immediately preceding sentence cannot be satisfied, this Agreement can be amended with the consent of the Noteholders
of a majority of the Outstanding Principal Balance of the Notes of each adversely affected Series.


 


(b)              
Notice of Amendments. The Servicer will notify the Rating Agencies in advance of any amendment. Promptly after the
execution of an amendment, the Servicer will deliver a copy of the amendment to the Rating Agencies and the Indenture Trustee.


 


Section 7.2.         
Assignment; Benefit of Agreement; Third Party Beneficiaries.


 


(a)              
Assignment. Except as stated in Section 5.4, this Agreement may not be assigned by the Asset Representations
Reviewer without the consent of the parties to this Agreement.


 


(b)               Benefit
of Agreement; Third-Party Beneficiaries. This Agreement is for the benefit of and will be binding on the parties and
their permitted successors and assigns. The Owner Trustee and the Indenture Trustee, for the benefit of the Noteholders, will
be third-party beneficiaries of this Agreement and entitled to enforce this Agreement against the Asset Representations
Reviewer. No other Person will have any right or obligation under this Agreement.


 






    15


     


    

 


Section 7.3.         
Notices.


 


(a)              
Delivery of Notices. All notices, requests, demands, consents, waivers or other communications to or from the parties
must be in writing and will be considered given:


 


(i)                
For overnight mail, on delivery or, for a letter mailed by registered first class mail, postage prepaid, three days after
deposit in the mail;


 


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


 


(iii)           
for an email, when receipt is confirmed by telephone or reply email from the recipient; and


 


(iv)            
for an electronic posting to a password-protected website to which the recipient has access, on delivery (without the requirement
of confirmation of receipt) of an email to that recipient stating that the electronic posting has occurred.


 


(b)              
Notice Addresses. Any notice, request, demand, consent, waiver or other communication will be delivered or addressed
to: (i) (a) in the case of the Sponsor and the Servicer, to American Honda Finance Corporation, 20800 Madrona Avenue, Torrance,
CA 90503, Attention: Treasury Capital Markets, (b) in the case of the Issuer or the Owner Trustee, to Honda Auto Receivables 2020-1
Owner Trust, c/o The Bank of New York Mellon, 240 Greenwich Street, Floor 7 West, New York, NY 10286, Attention: Asset Backed Securities
Unit – Honda Auto Receivables 2020-1, (c) in the case of the Indenture Trustee, to U.S. Bank National Association, 190 South
LaSalle Street, 7th Floor, Chicago, Illinois, 60603, Attention: Corporate Trust Services Honda Auto Receivables 2020-1
and (d) in the case of the Asset Representations Reviewer via electronic mail to ARRNotices@clayton.com, and to Clayton Fixed Income
Services LLC, 2638 South Falkenburg Road, Riverview, FL 33578, Attention: SVP; with a copy to Covius Services, LLC, 720 S. Colorado
Blvd, Suite 200, Glendale, CO 80246, Attention: Legal Department or, (ii) as to each party, at such other address or email as shall
be designated by such party in a written notice to each other party.


 


Section 7.4.         
Governing Law; Submission to Jurisdiction; Waiver of Jury Trial. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES
OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.


 


Each
of the parties hereto hereby submits to the exclusive 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 City for purposes of all legal proceedings arising
out of or relating to this Agreement or the transactions contemplated hereby. Each of the parties hereto hereby further
irrevocably waives any claim that any such courts lack jurisdiction over such party, and agrees not to plead or claim, in any
legal action or proceeding with respect to this Agreement in any of the aforesaid courts, that any such court lacks
jurisdiction over such party. Each of the parties hereto irrevocably waives, to the fullest extent permitted by law, any
objection that it 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.


 






    16


     


    

 


Each
party hereto hereby waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in respect
of any litigation directly or indirectly arising out of, under or in connection with this agreement.


 


Section 7.5.         
No Waiver; Remedies. No party’s failure or delay in exercising a power, right or remedy under this Agreement
will operate as a waiver. No single or partial exercise of a power, right or remedy will preclude any other or further exercise
of the power, right or remedy or the exercise of any other power, right or remedy. The powers, rights and remedies under this Agreement
are in addition to any powers, rights and remedies under law.


 


Section 7.6.         
Severability. If a part of this Agreement is held invalid, illegal or unenforceable, then it will be deemed severable
from the remaining Agreement and will not affect the validity, legality or enforceability of the remaining Agreement.


 


Section 7.7.         
Headings. The headings in this Agreement are included for convenience and will not affect the meaning
or interpretation of this Agreement.


 


Section 7.8.         
Counterparts. This Agreement may be executed in multiple counterparts. Each counterpart will be an original and all
counterparts will together be one document.


 


[Remainder of Page Left Blank]


 


 






    17


     


    

 



 


	EXECUTED BY:	 
	 	HONDA AUTO RECEIVABLES 2020-1 OWNER TRUST,
	 	as Issuer
	 	 
	 	By:  	The Bank of New York Mellon, not in its individual capacity, but solely as Owner Trustee





	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	AMERICAN HONDA FINANCE CORPORATION,
	 	as Sponsor and Servicer
	 	 
	 	By:	 
	 	 	Name:	Paul C. Honda
	 	 	Title:	Vice President and Assistant Secretary
	 	 
	 	CLAYTON FIXED INCOME SERVICES LLC,
	 	as Asset Representations Reviewer
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:



 


HAROT 2018-4


ARR Agreement


 






    S-1


     


    

 


Schedule A


 


Representations and Warranties, Review Materials
and Tests


 


	
        Representations and Warranty
	
        Review
        Materials and Tests

	
        (i)         Characteristics
        of Receivables. Each Receivable

        (a)  was originated by a Dealer located in the United States for the sale of the related Financed Vehicle, fully executed or
electronically authenticated by the Obligor thereto, purchased by AHFC from such Dealer under an existing agreement with AHFC,
assigned by such Dealer to the RPA Seller and subsequently sold by the RPA Seller to the Purchaser pursuant to the Receivables
Purchase Agreement,

        (b)         has created or shall create a first priority security interest in favor of the RPA Seller in the related Financed Vehicle,
        which security interest has been assigned by the RPA Seller to the Purchaser and shall be assignable, and shall be so assigned,
        by the Purchaser to the Issuer,

        (c)  contains provisions that permit the repossession and sale of the Financed Vehicle upon a default under the Receivable by
the Obligor,

        (d)  except as otherwise provided in this Agreement, provides, at the time of origination, for level Monthly Payments (provided
that the first and last payments in the life of the Receivable may be different from but in no event more than two times the level
payment) that fully amortize the Amount Financed over its original term,

        (e)   allows for prepayment,

        (f)   
        is not listed on the Servicer’s records as a federal, state or local governmental entity and

        (g)  
        is a retail installment sales contract.
	
        Review Materials:

        (a)   Title documents

        (b)   Installment sales contract

        (c)   Receivable Files

        (d)   Servicer’s Records/Data file

        Tests:

        (a)    Origination

        i.     Review the contract and confirm that the Dealer address is a United States address.

        ii.    Review the contract and confirm that it was signed by the Obligor.

        iii.   Review the contract and confirm that AHFC (or an acceptable variation of the name) is listed as an assignee within the
assignment section.

        iv.   Review the contract and confirm the Vehicle Identification Number (VIN) on the contract matches the VIN on the Certificate
of Title or Application for Title.

        v.     Confirm the Dealer signed the assignment section of the contract.

        (b)   Security Interest Enforcement

        i.     Review the Receivable File and confirm that the security interest has not been subordinated and the Receivable maintains
an enforceable security interest in favor of AHFC for the Financed Vehicle.

        (c)    Repossession

        i.     Review the contract and confirm that it contains language permitting the repossession and sale of the Financed Vehicle
upon default by the Obligor.

        (d)          Fully Amortizing Payment Schedule

        i.     Review the contract and confirm that all payments are equivalent with the possible exception of the first and last payments,
which may be two times the level payment.

        ii.    Review the Truth-in-Lending section of the contract and calculate the product of the Amount of Payments with the Number
of Payments and confirm that this amount is equal to the Total of Payments.

        (e)   Prepayments

        i.            Review the contract and confirm that the terms conform to the representation.

        (f)    No governmental obligors

        i.     Review the contract and confirm that the Obligor does not appear to be a governmental entity and that the Servicer’s
records do not otherwise indicate that the Obligor is a governmental entity.

        (g)   Retail installment sale contract

        i.     Review the contract and confirm that the contract terms conform to the representation.

        (h)          If (a) through (g) are confirmed, then Test Pass.




 






     


     


    

 


	(ii)         Compliance with
Law.  At the time it was originated, the Receivable complied in all material respects with all requirements of law
in effect at the time and applicable to such Receivable.	
        Review Materials:

        (a)   Installment sales contract

        (b)   AHFC’s
list of approved contract forms.

        Tests:

        (a)   Review
the contract form number and revision date and confirm that they are both on AHFC’s list of approved contract forms.

        (b)  If (a) is confirmed, then Test Pass.

	(iii)        Binding Obligation.  Each Receivable is on a form contract that includes the legal and binding payment obligation in writing of the related Obligor, enforceable by the holder thereof, except as enforceability may be subject to or limited by bankruptcy, insolvency, reorganization, moratorium, liquidation or other laws affecting the enforcement of creditors’ rights and by general principles of equity, consumer protection laws and the Servicemembers Civil Relief Act.	
        Review Materials:

        (a)   Installment
sales contract

        (b)  AHFC’s
list of approved contract forms.

        Tests:

        (a)   Review the contract form number and revision date and confirm that they are both on AHFC’s list of approved contract
forms.

        (b)  Confirm the Obligor signed the contract.

        (c)   If
(a) and (b) are confirmed, then Test Pass.

	(iv)        Receivables in Force.  According to the Servicer’s Receivables system, the Receivable shall not have been satisfied, subordinated or rescinded, nor shall the Financed Vehicle have been released in whole or in part from the lien granted by the related Receivable on the Cutoff Date.	
        Review Materials:

        (a)   Receivable Files

        (b)  Title
documents

        (c)   Servicer’s
Records/Data file

        Tests:

        (a)  Confirm that there is no indication in the Servicer’s Records or Receivable Files that the Receivable
was subordinated or rescinded.

        (b)  Confirm
that there is no indication in the Servicer’s Records or Receivable Files that the Receivable was satisfied prior to the
Cut-off Date.

        (c)  Confirm
that there is no indication in the Servicer’s Records or Receivable Files that the Financed Vehicle has been released from
the lien in whole or in part.

        (d)   If (a) through (c) are confirmed, then Test Pass.

	(v)         No Defenses.  To the RPA Seller’s knowledge, no right of rescission, setoff, counterclaim or defense has been asserted or threatened in writing by any Obligor against the Receivable.	
        Review Materials:

        (a)   Receivable Files

        (b)   Receivable
system

        Tests:

        (a)   Review the Receivable Files and confirm that there is no indication the Receivable is subject to rescission,
setoff, counterclaim or defense that would cause the Receivable to become invalid, or, if so, confirm such indications
were not present as of the Cut-off Date.

        (b)         If (a) is confirmed, then Test Pass.

	(vi)        No Defaults.  Except for payment delinquencies that, as of the Cutoff Date, were not more than thirty (30) days, according to the accounting records of the RPA Seller, no payment default existed under the terms of any Receivable as of the Cutoff Date.	
        Review Materials:

        (a)    Servicer’s Records/Data file

        Tests:

        (a)           Confirm that there is no indication of a payment default, other than payment delinquencies of not more than thirty (30)
        days, or if so, confirm such defaults were not present as of the Cut-off Date.

        (b)   
        If (a) is confirmed, then Test Pass.




 






     


     


    

 


	(vii)       Insurance.  Each
Obligor of a Receivable has been required to obtain physical damage insurance covering the related Financed Vehicle and is required
under the terms of the related Receivable to maintain such insurance.	
        Review Materials:

        (a)    Installment sale contract

        Tests:

        (a)   Confirm that the contract contains language that requires the Obligor to obtain and maintain insurance against physical
damage to the Financed Vehicle.

        (b)   If (a) is confirmed, then Test Pass.

         

	(viii)      Lawful Assignment.  The terms of the Receivable do not limit the right of the owner of the Receivable to sell the Receivable.	
        Review Materials:

        (a)    Installment sale contract

        Tests:

        (a)  Review
the contract and confirm that there is no language present that limits the rights of the owner of the Receivable to sell the Receivable.

        (b)          If (a) is confirmed, then Test Pass.

	(ix)        Chattel Paper.  The
Receivable is either “tangible chattel paper” or “electronic chattel paper” within the meaning of the
applicable UCC and (A) if the Receivable is tangible chattel paper, there is only one executed or otherwise authenticated original
of such Receivable or (B) if the Receivable is electronic chattel paper, there is only one authoritative copy of the record or
records (as defined in the UCC) comprising such Receivable.	
        Review Materials:

        (a)           Installment sale contract

        (b)          AHFC’s list of approved contract forms

        (c)   Title
documents

        Tests:

        (a)   Review
the contract form number and revision date and confirm that it is on AHFC’s list of approved contract forms.

        (b)  Confirm
there is a signature under the each of the Obligor’s and seller’s name within the contract.

        (c)   Confirm
there is no indication the contract was voided or is otherwise not the original authenticated copy.

        (d)          If (a) through (c) are confirmed, then Test Pass.

	(x)         Security Interest.  The RPA Seller has, or the Servicer has, started procedures that will result in the RPA Seller having a perfected, first priority security interest in the Financed Vehicle within then (10) days of the Closing Date, which security interest was validly created and is assignable by the RPA Seller to the Purchaser.	
        Review Materials:

        (a)    Installment sales contract

        (b)          Title documents

        Tests:

        (a)   Confirm
the Title documents report AHFC (or an acceptable variation of the name) as the first lien holder.

        (b)   Confirm
that the Obligor name on the contract matches the name on the title documents.

        (c)   Confirm
that the Vehicle Identification Number (VIN) on the contract matches the vehicle identification number as reported on the title
documents.

        (d)   If (a) through (c) are confirmed, then Test Pass.




 


	
        (xi)       Individual
        Characteristics. Each Receivable has the following individual characteristics as of the Cutoff Date:

        (a)   is not listed on the Servicer’s records as the subject of a pending bankruptcy proceeding;

        (b)   had an original maturity of not greater than 72 payments;

        (c)         provides for the payment of a finance charge or shall yield interest calculated on the basis of a Contract Rate of at least
        0.50%;

        (d)          has a Scheduled Payment that is not more than thirty (30) days past due;

        (e)   the Financed Vehicle to which the Receivable relates is a new or used Honda or Acura automobile or light-duty truck; and

        (f)   the Obligor under each Receivable had a billing address in the United States or its territories or possessions, according
to the records of the Servicer.
	
        Review Materials:

        (a)    Installment sales contract

        (b)   Servicer’s Records/Data file

        (c)    Receivable Files

        Tests:

        (a)    Bankruptcy

        i.     Review
the Servicer’s records and confirm that the Obligor was not the subject of a bankruptcy proceeding as of the Cutoff Date.

        (b)   Original Maturity

        i.           Confirm that the number of payments as stated within the contract does not exceed 72 payments.

        (c)    Contract Rate

        i.     Confirm that the Contract Rate stated within the contract is greater than or equal to 0.50% as of the Cutoff Date.

        (d)   
        Past Due

        i.     Review
the Servicer’s records and confirm that the Receivable was not more than thirty (30) days past due as of the Cutoff Date.

        (e)    
        New or Used Honda or Acura

        i.           Confirm the Financed Vehicle is a new or used automobile or light-duty truck as stated within the New/Used section of the
        contract.

        (f)     
        Billing Address

        i.     Confirm
the Receivable Files indicate that the Obligor’s address is located within the United States or its territories or possessions
as of the Cutoff Date.

        (g)   
        If (a) through (f) are confirmed, then Test Pass.