exv4w2



 





EXHIBIT 4.2



 


TRUST AGREEMENT




Among




TRIAD FINANCIAL SPECIAL PURPOSE LLC

Depositor,




TRIAD FINANCIAL CORPORATION

Administrator

and




WILMINGTON TRUST COMPANY

Owner Trustee




Dated as of November 21, 2007



 


 









 








TABLE OF CONTENTS




	 	 	 	 	 
	 	 	Page	 
	ARTICLE I.
	 	 	 	 
	DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	Section 1.1. Capitalized Terms
	 	 	1	 
	Section 1.2. Other Definitional Provisions
	 	 	3	 
	 
	 	 	 	 
	ARTICLE II.
	 	 	 	 
	ORGANIZATION
	 	 	4	 
	 
	 	 	 	 
	Section 2.1. Name
	 	 	4	 
	Section 2.2. Office
	 	 	4	 
	Section 2.3. Purposes and Powers
	 	 	4	 
	Section 2.4. Appointment of Owner Trustee
	 	 	5	 
	Section 2.5. Initial Capital Contribution of Trust Estate
	 	 	5	 
	Section 2.6. Declaration of Trust
	 	 	5	 
	Section 2.7. Liability of the Certificateholders
	 	 	5	 
	Section 2.8. Title to Trust Property
	 	 	5	 
	Section 2.9. Situs of Trust
	 	 	6	 
	Section 2.10. Representations and Warranties of the Depositor
	 	 	6	 
	Section 2.11. Representations and Warranties of the Administrator
	 	 	7	 
	Section 2.12. Covenants of the Certificateholders
	 	 	8	 
	Section 2.13. Federal Income Tax Treatment of the Trust
	 	 	9	 
	 
	 	 	 	 
	ARTICLE III.
	 	 	 	 
	CERTIFICATES AND TRANSFERS OF INTERESTS
	 	 	9	 
	 
	 	 	 	 
	Section 3.1. Ownership
	 	 	9	 
	Section 3.2. The Certificates
	 	 	9	 
	Section 3.3. Authentication of Certificates
	 	 	10	 
	Section 3.4. Registration of Transfer and Exchange of Certificates
	 	 	10	 
	Section 3.5. Mutilated, Destroyed, Lost or Stolen Certificates
	 	 	11	 
	Section 3.6. Persons Deemed Certificateholders
	 	 	12	 
	Section 3.7. Maintenance of Office or Agency
	 	 	12	 
	Section 3.8. ERISA Restrictions
	 	 	12	 
	Section 3.9. Access to List of Certificateholders’ Names and Addresses
	 	 	13	 
	 
	 	 	 	 
	ARTICLE IV.
	 	 	 	 
	VOTING RIGHTS AND OTHER ACTIONS
	 	 	13	 
	 
	 	 	 	 
	Section 4.1.
Majority Certificateholders
	 	 	13	 
	Section 4.2. Prior Notice to Certificateholders with Respect to Certain Matters
	 	 	13	 
	Section 4.3. Action by Certificateholders with Respect to Certain Matters
	 	 	14	 
	Section 4.4. Restrictions on Certificateholders’ Power
	 	 	14	 
	Section 4.5. Rights of Security Insurer
	 	 	14	 






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	 	 	Page	 
	ARTICLE V.
	 	 	 	 
	AUTHORITY AND DUTIES OF OWNER TRUSTEE
	 	 	15	 
	 
	 	 	 	 
	Section 5.1. General Authority
	 	 	15	 
	Section 5.2. General Duties
	 	 	15	 
	Section 5.3. Action upon Instruction
	 	 	15	 
	Section 5.4. No Duties Except as Specified in this Agreement or in Instructions
	 	 	16	 
	Section 5.5. No Action Except under Specified Documents or Instructions
	 	 	16	 
	Section 5.6. Restrictions
	 	 	17	 
	 
	 	 	 	 
	ARTICLE VI.
	 	 	 	 
	CONCERNING THE OWNER TRUSTEE
	 	 	17	 
	 
	 	 	 	 
	Section 6.1. Acceptance of Trusts and Duties
	 	 	17	 
	Section 6.2. Furnishing of Documents
	 	 	18	 
	Section 6.3. Representations and Warranties
	 	 	18	 
	Section 6.4. Reliance; Advice of Counsel
	 	 	19	 
	Section 6.5. Not Acting in Individual Capacity
	 	 	19	 
	Section 6.6. Owner Trustee Not Liable for Certificates or Receivables
	 	 	19	 
	Section 6.7. Owner Trustee May Own Notes
	 	 	20	 
	Section 6.8. Payments from Owner Trust Estate
	 	 	20	 
	Section 6.9. Doing Business in Other Jurisdictions
	 	 	21	 
	Section 6.10. Legal Proceedings
	 	 	21	 
	 
	 	 	 	 
	ARTICLE VII.
	 	 	 	 
	COMPENSATION OF OWNER TRUSTEE
	 	 	21	 
	 
	 	 	 	 
	Section 7.1. Owner Trustee’s Fees and Expenses
	 	 	21	 
	Section 7.2. Indemnification
	 	 	21	 
	Section 7.3. Payments to the Owner Trustee
	 	 	22	 
	Section 7.4. Non-recourse Obligations
	 	 	22	 
	 
	 	 	 	 
	ARTICLE VIII.
	 	 	 	 
	TERMINATION OF TRUST AGREEMENT
	 	 	22	 
	 
	 	 	 	 
	Section 8.1. Termination of Trust Agreement
	 	 	22	 
	 
	 	 	 	 
	ARTICLE IX.
	 	 	 	 
	SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES
	 	 	23	 
	 
	 	 	 	 
	Section 9.1. Eligibility Requirements for Owner Trustee
	 	 	23	 
	Section 9.2. Resignation or Removal of Owner Trustee
	 	 	23	 
	Section 9.3. Successor Owner Trustee
	 	 	24	 
	Section 9.4. Merger or Consolidation of Owner Trustee
	 	 	25	 
	Section 9.5. Appointment of Co-Trustee or Separate Trustee
	 	 	25	 






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	 	 	Page	 
	ARTICLE X.
	 	 	 	 
	MISCELLANEOUS
	 	 	26	 
	 
	 	 	 	 
	Section 10.1. Supplements and Amendments
	 	 	26	 
	Section 10.2. No Legal Title to Owner Trust Estate in Certificateholders
	 	 	27	 
	Section 10.3. Limitations on Rights of Others
	 	 	27	 
	Section 10.4. Notices
	 	 	28	 
	Section 10.5. Severability
	 	 	29	 
	Section 10.6. Separate Counterparts
	 	 	29	 
	Section 10.7. Assignments
	 	 	29	 
	Section 10.8. No Recourse
	 	 	29	 
	Section 10.9. No Petition
	 	 	29	 
	Section 10.10. Headings
	 	 	29	 
	Section 10.11. GOVERNING LAW
	 	 	29	 
	Section 10.12. Administrator
	 	 	29	 






EXHIBITS




	 	 	 	 	 
	EXHIBIT A

	 	-
	 	FORM OF CERTIFICATE
	EXHIBIT B

	 	-
	 	FORM OF CERTIFICATE OF TRUST
	EXHIBIT C

	 	-
	 	FORM OF QUALIFIED INSTITUTIONAL BUYER TRANSFEREE’S
CERTIFICATE






iii 









 





     This TRUST AGREEMENT dated as of November 21, 2007 among TRIAD FINANCIAL SPECIAL PURPOSE LLC,
a Delaware limited liability company (the “Depositor”), TRIAD FINANCIAL CORPORATION, a
California corporation, as sponsor of the Trust and Administrator (the “Administrator”),
and WILMINGTON TRUST COMPANY, a Delaware banking corporation, as trustee and not in its individual
capacity (the “Owner Trustee”), amends and restates in its entirety that certain Trust
Agreement dated as of October 23, 2007 between the Depositor and the Owner Trustee.



ARTICLE I.

DEFINITIONS




     Section
1.1. Capitalized Terms. For all purposes of this Agreement, the following terms will have
the meanings set forth below:



     “Administrator” means Triad, as the Administrator of the Trust.



     “Agreement” means this Trust Agreement, as the same may be amended and supplemented
from time to time.



     “Basic Documents” means this Agreement, the Certificate of Trust, the Sale and
Servicing Agreement, the Purchase Agreement, the Insurance Agreement, the Swap Agreement, the
Indenture, and the other documents and certificates delivered in connection therewith.



     “Beneficial Interest” means an undivided fractional beneficial ownership interest in
the Trust. The amount of each Beneficial Interest shall be expressed as a percentage, and the
total of the Beneficial Interests shall be 100.0%.



     “Benefit Plan” has the meaning assigned to such term in Section 3.8.



     “Certificate” means a trust certificate evidencing the beneficial interest of a
Certificateholder in the Trust, substantially in the form of Exhibit A attached hereto.



     “Certificateholder” or “Holder” means the Person in whose name a Certificate
is registered on the Certificate Register, initially Triad Financial Residual Special Purpose LLC.



     “Certificate of Trust” means the Certificate of Trust in the form of Exhibit B
that has been filed for the Trust pursuant to Section 3810(a) of the Statutory Trust Statute.



     “Certificate Register” and “Certificate Registrar” mean the register mentioned
and the registrar appointed pursuant to Section 3.4.



     “Code” means the Internal Revenue Code of 1986, as amended from time to time, and
Treasury Regulations promulgated thereunder.



     “Corporate Trust Office” means, with respect to the Owner Trustee, the principal
corporate trust office of the Owner Trustee located at 1100 North Market Street, Wilmington,
Delaware 19890, or at such other address as the Owner Trustee may designate by notice to the



 









 







Certificateholders, or the principal corporate trust office of any successor Owner Trustee (the
address of which such successor Owner Trustee will notify the Certificateholders).



     “Depositor” means Triad Financial Special Purpose LLC, a Delaware limited liability
company.



     “ERISA” has the meaning assigned to such term in Section 3.8.



     “Expenses” has the meaning assigned to such term in Section 7.2.



     “Indemnified Parties” has the meaning assigned to such term in Section 7.2.



     “Indenture” means the Indenture, dated as of November 21, 2007, between the Trust and
Citibank, N.A., as Indenture Trustee, as the same may be amended and supplemented from time to
time.



     “Instructing Party” has the meaning assigned to such term in Section 5.3



     “Majority Certificateholders” means Certificateholders holding at least a majority of
the Beneficial Interests.



     “Owner Trust Estate” means all right, title and interest of the Trust in and to the
property and rights assigned to the Trust pursuant to Section 2.1 of the Sale and Servicing
Agreement, all funds on deposit from time to time in the Trust Accounts (including all Eligible
Investments therein and all proceeds therefrom) and all other property of the Trust from time to
time, including any rights of the Owner Trustee and the Trust under the Sale and Servicing
Agreement.



     “Owner Trustee” means Wilmington Trust Company, a Delaware banking corporation, not in
its individual capacity but solely as owner trustee under this Agreement, and any successor Owner
Trustee hereunder.



     “Person” means any individual, corporation, estate, partnership, limited liability
company, joint venture, association, joint stock company, trust (including any beneficiary
thereof), unincorporated organization or government or any agency or political subdivision thereof.



     “Record Date” means with respect to any Distribution Date, the close of business on
the last Business Day immediately preceding such Distribution Date.



     “Residual Holder” means Triad Financial Residual Special Purpose LLC, a Delaware
limited liability company.



     “Responsible Officer” means, with respect to the Owner Trustee, any officer within the
Corporate Trust Office of the Owner Trustee with direct responsibility for the administration of
the Trust and also, with respect to a particular matter, any other officer to whom such matter is
referred because of such officer’s knowledge of and familiarity with the particular subject.



2









 





     “Sale and Servicing Agreement” means the Sale and Servicing Agreement dated as of
November 21, 2007, among the Trust, the Depositor, Triad and the Indenture Trustee, as the same may
be amended and supplemented from time to time.



     “Secretary of State” means the Secretary of State of the State of Delaware.



     “Security Insurer” means Financial Security Assurance Inc., or its successor in
interest.



     “Statutory Trust Statute” means Chapter 38 of Title 12 of the Delaware Code, 12
Del. Code § 3801 et seq., as the same may be amended from time to time.



     “Swap Agreement” means the ISDA Master Agreement, dated November 21, 2007, between the
Trust and the Swap Counterparty, including the Schedule and Credit Support Annex thereto, the
Confirmation relating to the Class A-2b Notes, the Confirmation relating to the Class A-3b Notes
and the Confirmation relating to the Class A-4b Notes, together with any replacement swap agreement
(which replacement swap agreement has been approved by the Security Insurer in accordance with
Section 12.17 of the Sale and Servicing Agreement); provided, however, that no
additional swap agreement shall be a “Swap Agreement” under the Basic Documents for so long as the
Swap Agreement is outstanding without the prior, written consent of the Swap Counterparty unless
the Swap Agreement has terminated.



     “Swap Counterparty” means Citibank, N.A., together with any replacement Swap
Counterparty (which replacement Swap Counterparty must be approved by the Security Insurer in
accordance with Section 12.17 of the Sale and Servicing Agreement).



     “Treasury Regulations” means regulations, including proposed or temporary regulations,
promulgated under the Code. References herein to specific provisions of proposed or temporary
regulations will include analogous provisions of final Treasury Regulations or other successor
Treasury Regulations.



     “Triad” means Triad Financial Corporation, a California corporation, or its successor
in interest.



     “Trust” means the trust established by this Agreement.



     Section 1.2.
Other Definitional Provisions.



          (a) Capitalized terms used herein and not otherwise defined have the meanings assigned to them
in the Sale and Servicing Agreement or, if not defined therein, in the Indenture.




          (b) All terms defined in this Agreement will have the defined meanings when used in any
certificate or other document made or delivered pursuant hereto unless otherwise defined therein.




          (c) As used in this Agreement and in any certificate or other document made or delivered
pursuant hereto or thereto, accounting terms not defined in this Agreement or in any such
certificate or other document, and accounting terms partly defined in this Agreement or in



3









 






any such
certificate or other document to the extent not defined, will have the respective meanings given to
them under generally accepted accounting principles as in effect on the date of this Agreement or
any such certificate or other document, as applicable. To the extent that the definitions of
accounting terms in this Agreement or in any such certificate or other document are inconsistent
with the meanings of such terms under generally accepted accounting principles, the definitions
contained in this Agreement or in any such certificate or other document will control.




          (d) The words “hereof,” “herein,” “hereunder” and words of similar
import when used in this Agreement will refer to this Agreement as a whole and not to any
particular provision of this Agreement; Section and Exhibit references contained in this Agreement
are references to Sections and Exhibits in or to this Agreement unless otherwise specified; and the
term “including” will mean “including without limitation.”




          (e) The definitions contained in this Agreement are applicable to the singular as well as the
plural forms of such terms and to the masculine as well as to the feminine and neuter genders of
such terms.




ARTICLE II.

ORGANIZATION




     Section 2.1.
Name. There is hereby formed a trust to be known as “Triad Automobile Receivables
Trust 2007-B,” in which name the Owner Trustee may conduct the business of the Trust, make and
execute contracts and other instruments on behalf of the Trust and sue and be sued.



     Section 2.2.
Office. The office of the Trust will be in care of the Owner Trustee at the Corporate
Trust Office or at such other address as the Owner Trustee may designate by written notice to the
Certificateholders.



     Section 2.3.
Purposes and Powers. The purpose of the Trust is, and the Trust will have the power
and authority, to engage in the following activities:



          (a) to issue the Notes pursuant to the Indenture and the Certificates pursuant to this
Agreement, and to sell the Notes to the Depositor and sell, transfer or exchange the Certificates;




          (b) to assign, grant, transfer, pledge, mortgage and convey the Owner Trust Estate to the
Indenture Trustee pursuant to the Indenture for the benefit of the Security Insurer and on behalf
of the Noteholders and the Swap Counterparty and to hold, manage and distribute to the
Certificateholders pursuant to the terms of the Sale and Servicing Agreement any portion of the
Owner Trust Estate released from the Lien of, and remitted to the Trust pursuant to, the Indenture;




          (c) to enter into and perform its obligations under the Basic Documents to which it is a
party;




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          (d) to enter into interest rate swaps and caps and other derivative instruments in connection
with the Notes;




          (e) to enter into interest rate swaps and caps and other derivative instruments in connection
with the Certificates;




          (f) to engage in those activities, including entering into agreements, that are necessary,
suitable or convenient to accomplish the foregoing or are incidental thereto or connected
therewith; and




          (g) subject to compliance with the Basic Documents, to engage in such other activities as may
be required in connection with conservation of the Owner Trust Estate and the making of
distributions to the Certificateholders and the Noteholders.



The Trust is hereby authorized to engage in the foregoing activities. The Trust will not engage in
any activity other than in connection with the foregoing or other than as required or authorized by
the terms of the Basic Documents.




     Section 2.4.
Appointment of Owner Trustee. The Depositor hereby appoints the Owner Trustee as
trustee of the Trust effective as of the date hereof, to have all the rights, powers and duties set
forth herein.



     Section 2.5.
Initial Capital Contribution of Trust Estate. The Owner Trustee hereby acknowledges
prior receipt in trust from the Depositor of the sum of $1,000 which contribution will constitute
the initial Owner Trust Estate. The Administrator will pay organizational expenses of the Trust as
they may arise.



     Section 2.6.
Declaration of Trust. The Owner Trustee hereby declares that it will hold the Owner
Trust Estate in trust upon and subject to the conditions set forth herein for the use and benefit
of the Holders, subject to the obligations of the Trust under the Basic Documents. It is the
intention of the parties hereto that the Trust constitute a statutory trust under the Statutory
Trust Statute and that this Agreement constitute the governing instrument of such statutory trust.
Effective as of the date hereof, the Owner Trustee will have all rights, powers and duties set
forth herein and to the extent not inconsistent herewith, in the Statutory Trust Statute with
respect to accomplishing the purposes of the Trust. The Owner Trustee has filed the Certificate of
Trust with the Secretary of State.



     Section 2.7.
Liability of the Certificateholders. Certificateholders and holders of beneficial
interests therein shall be entitled to the same limitation of personal liability extended to
stockholders of private corporations for profit organized under the General Corporation Law of the
State of Delaware.



     Section 2.8.
Title to Trust Property.



          (a) Legal title to all the Owner Trust Estate will be vested at all times in the Trust as a
separate legal entity except where applicable law in any jurisdiction requires title to any part of
the Owner Trust Estate to be vested in a trustee or trustees, in which case title will be deemed to
be vested in the Owner Trustee, a co-trustee and/or a separate trustee, as the case may



5









 






be. If any
portion of the Owner Trust Estate is deemed vested in the Owner Trustee, a co-trustee and/or
separate trustee, the Owner Trustee, upon having actual knowledge thereof, will immediately notify
the Indenture Trustee, the Servicer and the Administrator, and the Administrator will cause to be
filed such UCC financing statements and related filing documents or writings as are necessary to
maintain the Indenture Trustee’s security interest in the Owner Trust Estate.




          (b) No Certificateholder will have legal title to any part of the Trust Property. No
transfer, by operation of law or otherwise, of any right, title or interest by any
Certificateholder of its ownership interest in the Owner Trust Estate will operate to terminate
this Agreement or the trusts hereunder or entitle any transferee to an accounting or to the
transfer to it of legal title to any part of the Trust Property.




     Section 2.9.
Situs of Trust. The Trust will be located in the State of Delaware. All bank
accounts maintained by the Owner Trustee on behalf of the Trust will be located in the State of
Delaware or the State of New York. Payments will be received by the Trust only in Delaware or New
York and payments will be made by the Trust only from Delaware or New York. The Trust will not
have any employees in any state other than Delaware; provided, however, that
nothing herein will restrict or prohibit the Owner Trustee, the Servicer or any agent of the Trust
from having employees within or without the State of
Delaware. The only office of the Trust will be at the Corporate Trust Office located in
Delaware.



     Section 2.10.
Representations and Warranties of the Depositor. The Depositor makes the following
representations and warranties on which the Owner Trustee relies in accepting the Owner Trust
Estate in trust and executing the Certificates and upon which the Security Insurer relies in
issuing the Note Policy.



          (a) Organization and Good Standing. The Depositor is duly organized and validly
existing as a Delaware limited liability company with power and authority to own its properties and
to conduct its business as such properties are currently owned and such business is presently
conducted and is proposed to be conducted pursuant to the Basic Documents.




          (b) Due Qualification. The Depositor is duly qualified to do business 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 property, the conduct of its business
and the performance of its obligations under the Basic Documents requires such qualification.




          (c) Power and Authority. The Depositor has the power and authority to execute and
deliver this Agreement and to carry out its terms; the Depositor has full power and authority to
sell and assign the property to be sold and assigned to and deposited with the Trust and the
Depositor has duly authorized such sale and assignment and deposit to the Trust by all necessary
action; and the execution, delivery and performance of this Agreement has been duly authorized by
the Depositor by all necessary action.




          (d) No Consent Required. No consent, license, approval or authorization or
registration or declaration with, any Person or with any governmental authority, bureau or



6









 






agency
is required in connection with the execution, delivery or performance of the Basic Documents,
except for such as have been obtained, effected or made.




          (e) No Violation. The consummation of the transactions contemplated by this Agreement
and the fulfillment of the terms hereof do not conflict with, result in any breach of any of the
terms and provisions of, or constitute (with or without notice or lapse of time) a default under,
the limited liability agreement of the Depositor, or any material indenture, agreement or other
instrument to which the Depositor is a party or by which it is bound; nor result in the creation or
imposition of any Lien upon any of its properties pursuant to the terms of any such indenture,
agreement or other instrument (other than pursuant to the Basic Documents); nor violate any law or,
to the best of the Depositor’s knowledge, any order, rule or regulation applicable to the Depositor
of any court or of any federal or state regulatory body, administrative agency or other
governmental instrumentality having jurisdiction over the Depositor or its properties.




          (f) No Proceedings. There are no proceedings or investigations pending or, to the
Depositor’s best knowledge, threatened against it before any court, regulatory body, administrative
agency or other tribunal or governmental instrumentality having jurisdiction over it or its
properties (i) asserting the invalidity of any of the Basic Documents, (ii) seeking to prevent the
issuance of the Certificates or the Notes or the consummation of any of the transactions
contemplated by any of the Basic Documents, (iii) seeking any determination or ruling that might
materially and adversely affect its performance of its obligations under, or the validity or
enforceability of, any of the Basic Documents, or (iv) seeking to adversely affect the federal
income tax or other federal, state or local tax characteristics of the Certificates.




     Section 2.11.
Representations and Warranties of the Administrator. The Administrator, as sponsor of
the Trust, assumes all rights and obligations under Section 2(a)(4) of the Securities Act of 1933,
as amended (the “Securities Act”). The Administrator makes the following representations
and warranties on which the Owner Trustee relies in accepting the Owner Trust Estate in trust and
executing the Certificates and upon which the Security Insurer relies in issuing the Note Policy.



          (a) Organization and Good Standing. The Administrator is duly organized and validly
existing as a California corporation with corporate power and authority to own its properties and
to conduct its business as such properties are currently owned and such business is presently
conducted and is proposed to be conducted pursuant to the Basic Documents.




          (b) Due Qualification. The Administrator is duly qualified to do business as a
foreign corporation in good standing, and has obtained all necessary licenses and approvals, in all
jurisdictions in which the ownership or lease of its property, the conduct of its business and the
performance of its obligations under the Basic Documents requires such qualification.




          (c) Power and Authority. The Administrator has the corporate power and authority to
execute and deliver this Agreement and to carry out its terms; the Administrator has full power and
authority to sell and assign the property to be sold and assigned to the Depositor and deposited by
the Depositor with the Trust and the Administrator has duly authorized such sale and assignment to
the Depositor by all necessary corporate action; and the execution,



7









 






delivery and performance of
this Agreement has been duly authorized by the Administrator by all necessary corporate action.




          (d) No Consent Required. No consent, license, approval or authorization or
registration or declaration with, any Person or with any governmental authority, bureau or agency
is required in connection with the execution, delivery or performance of the Basic Documents,
except for such as have been obtained, effected or made.




          (e) No Violation. The consummation of the transactions contemplated by this Agreement
and the fulfillment of the terms hereof do not conflict with, result in any breach of any of the
terms and provisions of, or constitute (with or without notice or lapse of time) a default under,
the articles of incorporation or by-laws of the Administrator, or any material indenture, agreement
or other instrument to which the Administrator is a party or by which it is bound; nor result in
the creation or imposition of any Lien upon any of its properties pursuant to the terms of any such
indenture, agreement or other instrument (other than pursuant to the Basic Documents); nor violate
any law or, to the best of the Administrator’s knowledge, any order, rule or regulation applicable
to the Administrator of any court or of any federal or state regulatory body, administrative agency
or other governmental instrumentality having jurisdiction over the Administrator or its properties.




          (f) No Proceedings. There are no proceedings or investigations pending or, to the
Administrator’s best knowledge, threatened against it before any court, regulatory body,
administrative agency or other tribunal or governmental instrumentality having jurisdiction over it
or its properties (i) asserting the invalidity of any of the Basic Documents, (ii) seeking to
prevent the issuance of the Certificates or the Notes or the consummation of any of the
transactions contemplated by any of the Basic Documents, (iii) seeking any determination or ruling
that might materially and adversely affect its performance of its obligations under, or the
validity or enforceability of, any of the Basic Documents, or (iv) seeking to adversely affect the
federal income tax or other federal, state or local tax attributes of the Certificates.




     Section 2.12.
Covenants of the Certificateholders. Each Certificateholder agrees:



          (a) to be bound by the terms and conditions of the Certificate of which the Holder is the
owner and of this Agreement, including any supplements or amendments hereto and to perform the
obligations of a Holder as set forth therein or herein, in all respects as if it were a signatory
hereto. This undertaking is made for the benefit of the Trust, the Owner Trustee and the Security
Insurer; and




          (b) until the completion of the events specified in Section 8.1(d), not to, for any
reason, institute proceedings for the Trust to be adjudicated bankrupt or insolvent, or consent to
the institution of bankruptcy or insolvency proceedings against the Trust, or file a petition
seeking or consenting to reorganization or relief under any applicable federal or state law
relating to bankruptcy, or consent to the appointment of a receiver, liquidator, assignee, trustee,
sequestrator (or other similar official) of the Trust or a substantial part of its property, or
cause or permit the Trust to make any assignment for the benefit of its creditors, or admit in
writing its inability to pay its debts generally as they become due, or declare or effect a
moratorium on its debt or take any action in furtherance of any such action.





8









 








     Section 2.13.
Federal Income Tax Treatment of the Trust.



          (a) For so long as the Trust has a single owner for federal income tax purposes, it will,
pursuant to Treasury Regulations promulgated under Section 7701 of the Code, be disregarded as an
entity distinct from the Certificateholder for all federal income tax purposes. Accordingly, for
federal income tax purposes, the Certificateholder will be treated as (i) owning all assets owned
by the Trust, (ii) having incurred all liabilities incurred by the Trust, and (iii) all
transactions between the Trust and the Certificateholder will be disregarded.




          (b) Neither the Owner Trustee nor any Certificateholder will, under any circumstances, and at
any time, make an election on IRS Form 8832 or otherwise, to classify the Trust as an association
taxable as a corporation for federal, state or any other applicable tax purpose.




          (c) If there is more than one owner of the Certificates, due to the sale of the Certificates,
issuance by the Trust of additional Certificates to a Person other than the Residual Holder or
otherwise, the Depositor and the Owner Trustee, by entering into this Agreement, and the Residual
Holder and the Certificateholders, by acquiring any Certificates or interest therein, (i) express
their intention that the Certificates will qualify as equity interests in a partnership for federal
income tax purposes and (ii) unless otherwise required by the appropriate taxing authorities, agree
to treat the Certificates as equity interests in a partnership for the purposes of federal income
taxes, state and local income and franchise taxes, and any other taxes imposed upon, measured by,
or based upon gross or net income. The parties agree that, unless otherwise required by
appropriate tax authorities, the Trust shall file or cause to be filed annual or other necessary
returns, reports and other forms consistent with such characterization of the Trust for tax
purposes. At any such time that the Trust has two or more equity owners, this Agreement will be
amended, in accordance with Section 10.1 herein, and appropriate provisions will be added
so as to provide for the treatment of the Trust as a partnership for federal income tax purposes.




ARTICLE III.

CERTIFICATES AND TRANSFERS OF INTERESTS




     Section 3.1.
Ownership. Upon the formation of the Trust by the contribution by the Depositor
pursuant to Section 2.5 and until the issuance of the Certificate to the initial
Certificateholder, the Depositor will be the sole beneficiary of the Trust.



     Section 3.2.
The Certificates. Each Certificate will be executed on behalf of the Trust by manual
or facsimile signature of an authorized officer of the Owner Trustee. A Certificate bearing the
manual or facsimile signatures of individuals who were, at the time when such signatures will
have been affixed, authorized to sign on behalf of the Trust, will be validly issued and
entitled to the benefit of this Agreement, notwithstanding that such individuals or any of them
will have ceased to be so authorized prior to the authentication and delivery of such Certificate
or did not hold such offices at the date of authentication and delivery of such Certificate.
Subject to the satisfaction of the conditions herein and those conditions stated on the
Certificate, a transferee of a Certificate will become a Certificateholder, and will be entitled to
the rights and subject to the obligations of a Certificateholder hereunder, upon due registration
of



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such Certificate in such transferee’s name pursuant to Section 3.4. Each Certificate
will be issuable in minimum denominations of no less than 5% of the beneficial interest in the
Trust. Each Certificate will represent a Beneficial Interest in the Trust.



     Section 3.3.
Authentication of Certificates. Concurrently with the initial sale of the Receivables
to the Trust pursuant to the Sale and Servicing Agreement, the Owner Trustee will cause the
Certificates to be executed on behalf of the Trust, authenticated and delivered to or upon the
written order of the Depositor, signed by its chairman of the board, its president or any vice
president, its treasurer or any assistant treasurer without further action by the Depositor, in
authorized denominations. No Certificate will entitle its Holder to any benefit under this
Agreement, or will be valid for any purpose, unless there will appear on such Certificate a
certificate of authentication substantially in the form set forth in Exhibit A, executed by
the Owner Trustee, by manual or facsimile signature; such authentication will constitute conclusive
evidence that such Certificate is duly authenticated and delivered hereunder. Each Certificate
will be dated the date of its authentication.



     Section 3.4.
Registration of Transfer and Exchange of Certificates. The Certificate Registrar will
keep or cause to be kept, at the office or agency maintained pursuant to Section 3.7, a
Certificate Register in which, subject to such reasonable regulations as it may prescribe, the
Owner Trustee will provide for the registration of the Certificates and of transfers and exchanges
of the Certificates as herein provided. The Owner Trustee will be the initial Certificate
Registrar.



     The initial Certificateholder will provide the Certificate Registrar and the Indenture Trustee
with its name and address on the Closing Date. Upon any transfers of a Certificate, the
Certificate Registrar will notify the Indenture Trustee of the name and address of each transferee
in writing, by facsimile, on the day of such transfer.



     Upon surrender for registration of transfer of a Certificate at the office or agency
maintained pursuant to Section 3.7, the Owner Trustee will execute, authenticate and
deliver, in the name of the designated transferee, a new Certificate dated the date of
authentication by the Owner Trustee or any authenticating agent.



     A Certificate presented or surrendered for registration of transfer or exchange will be
accompanied by a written instrument of transfer in form satisfactory to the Owner Trustee and the
Certificate Registrar duly executed by the Certificateholder or his
attorney duly authorized in writing. Each Certificate surrendered for registration of
transfer or exchange will be canceled and subsequently disposed of by the Owner Trustee in
accordance with its customary practice.



     No service charge will be made for any registration of transfer or exchange of a Certificate,
but the Owner Trustee or the Certificate Registrar may require payment of a sum sufficient to cover
any expense, tax or governmental charge that may be imposed in connection with any transfer or
exchange of a Certificate.



     To the fullest extent permitted by applicable law, no sale, pledge or other transfer of a
Certificate will be made unless (a) such sale, pledge or other transfer (i) is made pursuant to an
effective registration statement under the Securities Act and any applicable state securities laws



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or (ii) is made to a Person that is a “qualified institutional buyer” as defined in Rule 144A under
the Securities Act, (b) such sale, pledge or other transfer will not cause the Trust to be treated
as a publicly traded partnership taxable as a corporation for federal income tax purposes, and (c)
such sale, pledge or other transfer is made to a Person who is a United States Person (within the
meaning of Section 7701(a)(30) of the Code) and who has delivered to the Owner Trustee satisfactory
evidence thereof. Each prospective purchaser of a Certificate after the Closing Date will deliver
a completed and duly executed transferee’s certificate (in the form of Exhibit C for
“qualified institutional buyers”), to the Owner Trustee and to the transferor for inspection prior
to effecting any requested transfer. The Issuer and the Owner Trustee may rely conclusively upon
the information contained in any such transferee’s certificate in the absence of knowledge to the
contrary. In connection with any transfer (other than the purchase of any Certificate by a
purchaser who delivers a transferee’s certificate in the form of Exhibit C), the Owner
Trustee will require an Opinion of Counsel to the effect that such transfer may be effected without
registration under the Securities Act, which Opinion of Counsel, if so required, will be addressed
to the Issuer and the Owner Trustee and will be secured at the expense of the Holder. The Owner
Trustee may rely upon the representation of any transferee made to the Owner Trustee, and upon such
Opinion of Counsel, and will be fully protected in so doing. Any Certificateholders will be deemed
to have agreed to these restrictions on transfer.



     In order to preserve the exemption for resales and transfers provided by Rule 144A under the
Securities Act, the Issuer will provide to any Certificateholder and any prospective purchaser
designated by such Certificateholder, upon request of such Certificateholder or such prospective
purchaser, such information required by Rule 144A as will enable the resale of such Certificate to
be made pursuant to Rule 144A. The Owner Trustee will cooperate with the Issuer in providing the
Issuer such information in its possession regarding the Certificates, the Receivables and other
matters regarding the Certificates as the Issuer will reasonably request to meet its obligations
under the preceding sentence.



     At the option of a Holder, a Certificate may be exchanged for one or more other Certificates
of authorized denominations of a like aggregate beneficial interest in the Trust upon surrender of
the Certificate to be exchanged at the Corporate Trust Office maintained pursuant to Section
3.7. Whenever any Certificates are so surrendered for
exchange, the Owner Trustee shall execute on behalf of the Trust, authenticate and deliver one
or more Certificates dated the date of authentication by the Owner Trustee or any authenticating
agent. Such Certificates shall be delivered to the Holder making the exchange.



     Section 3.5.
Mutilated, Destroyed, Lost or Stolen Certificates.



          (a) If (i) any mutilated Certificate will be surrendered to the Certificate Registrar, or if
the Certificate Registrar will receive evidence to its satisfaction of the destruction, loss or
theft of any Certificate and (ii) there will be delivered to the Certificate Registrar and the
Owner Trustee such security or indemnity as may be required by them to hold each of them harmless,
then in the absence of notice that such Certificate has been acquired by a protected purchaser, the
Owner Trustee on behalf of the Trust will execute, and the Owner Trustee will authenticate and
deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a
new Certificate of like class, tenor and denomination. In connection with the issuance of any new
Certificate under this Section 3.5, the Owner Trustee or the Certificate



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Registrar may
require the payment of a sum sufficient to cover any expense, tax or other governmental charge that
may be imposed in connection therewith. Any duplicate Certificate issued pursuant to this
Section 3.5 will constitute conclusive evidence of an ownership interest in the Trust, as
if originally issued, whether or not the mutilated, destroyed, lost or stolen Certificate will be
found at any time.




          (b) If, after the delivery of a replacement Certificate or payment in respect of a mutilated,
destroyed, lost or stolen Certificate pursuant to Section 3.5(a), a protected purchaser of
the original Certificate in lieu of which such replacement Certificate was issued presents for
payment such original Certificate, the Owner Trustee shall be entitled to recover such payment from
the Person to whom such replacement Certificate was delivered or any Person taking such replacement
Certificate from such Person to whom such replacement Certificate was delivered or any assignee of
such Person, except a protected purchaser, and shall be entitled to recover upon the security or
indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by the
Owner Trustee in connection therewith.




          (c) The provisions of this Section 3.5 are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Certificates.




     Section 3.6.
Persons Deemed Certificateholders. Every Person by virtue of becoming a
Certificateholder in accordance with this Agreement is deemed to be bound by the terms of this
Agreement. Prior to due presentation of a Certificate for registration of transfer, the Owner
Trustee, the Certificate Registrar and the Security Insurer, and any agent of the Owner Trustee,
the Certificate Registrar and the Security Insurer, may treat the person in whose name any
Certificate
will be registered in the Certificate Register as the owner of such Certificate for the
purpose of receiving distributions pursuant to the Sale and Servicing Agreement and for all other
purposes whatsoever, and none of the Owner Trustee, the Certificate Registrar or the Security
Insurer nor any agent of the Owner Trustee, the Certificate Registrar or the Security Insurer will
be bound by any notice to the contrary.



     Section 3.7.
Maintenance of Office or Agency. The Owner Trustee will maintain an office or offices
or agency or agencies where Certificates may be surrendered for registration of transfer or
exchange and where notices and demands to or upon the Owner Trustee in respect of the Certificates
and the Basic Documents may be served. The Owner Trustee initially designates its principal
Corporate Trust Office for such purposes. The Owner Trustee will give prompt written notice to the
Depositor, the Certificateholders and (unless an Insurer Default has occurred and is continuing)
the Security Insurer of any change in the location of the Certificate Register or any such office
or agency.



     Section 3.8.
ERISA Restrictions. The Certificates may not be acquired by or for the account of (a)
an employee benefit plan (as defined in Section 3(3) of the Employee Retirement Income Security Act
of 1974, as amended (“ERISA”)) that is subject to the provisions of Title I of ERISA, (b) a
plan (as defined in Section 4975(e)(1) of the Code) that is subject to Section 4975 of the Code, or
(c) any entity whose underlying assets include assets of a plan described in (a) or (b) above by
reason of such plan’s investment in the entity (including, without limitation, an insurance company
general account) (each, a “Benefit Plan”). By accepting and



12









 







holding its beneficial ownership
interest in its Certificate, the Holder thereof is deemed to have represented and warranted that it
is not a Benefit Plan.



     Section 3.9.
Access to List of Certificateholders’ Names and Addresses. The Owner Trustee shall
furnish or cause to be furnished to the Servicer and the Depositor, within 15 days after receipt by
the Owner Trustee of a request therefor from the Servicer or the Depositor in writing, a list of
the names and addresses of the Certificateholders as of the most recent Record Date. Each Holder,
by receiving and holding a Certificate, shall be deemed to have agreed not to hold any of the
Servicer, the Depositor or the Owner Trustee accountable by reason of the disclosure of its name
and address, regardless of the source from which such information was derived.



ARTICLE IV.

VOTING RIGHTS AND OTHER ACTIONS




     Section 4.1.
Majority Certificateholders. Except as expressly provided herein, any action that may
be taken or consent that may be given or withheld by the Certificateholders under this Agreement
shall be effective if such action is taken or consent is given or withheld by the Majority
Certificateholders as of such action or consent. Except as expressly provided herein, any
written notice, instruction, direction or other document of the Certificateholders delivered
pursuant to this Agreement shall be effective if signed by the Majority Certificateholders.



     Section 4.2.
Prior Notice to Certificateholders with Respect to Certain Matters. With respect to
the following matters, the Owner Trustee will not take action unless at least 30 days before the
taking of such action, the Owner Trustee will have notified the Certificateholders in writing of
the proposed action and the Majority Certificateholders will not have notified the Owner Trustee in
writing prior to the 30th day after such notice is given that the Majority Certificateholders have
withheld consent or provided alternative direction:



          (a) the election by the Trust to file an amendment to the Certificate of Trust (unless such
amendment is required to be filed under the Statutory Trust Statute or unless such amendment would
not materially and adversely affect the interests of the Holder);




          (b) the amendment of the Indenture by a supplemental indenture in circumstances where the
consent of any Noteholder is required;




          (c) the amendment of the Indenture by a supplemental indenture in circumstances where the
consent of any Noteholder is not required and such amendment materially adversely affects the
interest of the Certificateholders; or




          (d) except pursuant to Section 12.1(b) of the Sale and Servicing Agreement, the amendment,
change or modification of the Sale and Servicing Agreement, except to cure any ambiguity or defect
or to amend or supplement any provision in a manner that would not materially adversely affect the
interests of the Certificateholders.




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The Owner Trustee will notify the Certificateholders in writing of any appointment of a successor
Note Registrar or Indenture Trustee within five Business Days after receipt of notice thereof.




     Section 4.3.
Action by Certificateholders with Respect to Certain Matters. The Owner Trustee will
not have the power, except upon the direction of all Certificateholders or the Security Insurer in
accordance with the Basic Documents, to (a) remove the Servicer under the Sale and Servicing
Agreement pursuant to Section 9.2 thereof or (b) except as expressly provided in the Basic
Documents, sell the Receivables after the termination of the Indenture. The Owner Trustee will
take the actions referred to in the preceding sentence only upon written instructions signed by all
Certificateholders or the Security Insurer in accordance with the Basic Documents and the
furnishing of indemnification satisfactory to the Owner Trustee by all Certificateholders or the
Security Insurer in accordance with the Basic Documents.



     Section 4.4.
Restrictions on Certificateholders’ Power.



          (a) No Certificateholder will direct the Owner Trustee to take or refrain from taking any
action if such action or inaction would be contrary to any obligation of the Trust or the Owner
Trustee under any of the Basic Documents or would be contrary to Section 2.3 nor will the
Owner Trustee be obligated to follow any such direction, if given.




          (b) The Certificateholders will not have any right by virtue or by availing themselves of any
provisions of this Agreement to institute any suit, action, or proceeding in equity or at law upon
or under or with respect to this Agreement or any Basic Document, unless the Certificateholders
constitute the Majority Certificateholders who are the Instructing Party pursuant to Section
5.3 and unless the Certificateholders previously will have given to the Owner Trustee a written
notice of default and of the continuance thereof, as provided in this Agreement, and also unless
the Certificateholders will have made written request upon the Owner Trustee to institute such
action, suit or proceeding in its own name as Owner Trustee under this Agreement and will have
offered to the Owner Trustee such reasonable indemnity as it may require against the costs,
expenses and liabilities to be incurred therein or thereby, and the Owner Trustee, for 10 days
after its receipt of such notice, request, and offer of indemnity, has neglected or refused to
institute any such action, suit, or proceeding, and during such 10-day period no request or waiver
inconsistent with such written request has been given to the Owner Trustee pursuant to and in
compliance with this Section 4.4 or Section 5.3. For the protection and
enforcement of the provisions of this Section 4.4, the Certificateholders and the Owner
Trustee are entitled to such relief as can be given either at law or in equity.




     Section 4.5.
Rights of Security Insurer. Notwithstanding anything to the contrary in the Basic
Documents, without the prior written consent of the Security Insurer (so long as no Insurer Default
has occurred and is continuing), the Owner Trustee will not (a) remove the Servicer, (b) initiate
any claim, suit or proceeding by the Trust or compromise any claim, suit or proceeding brought by
or against the Trust, other than with respect to the enforcement of any Receivable or any rights of
the Trust thereunder, (c) authorize the merger or consolidation of the Trust with or into any other
statutory trust or other entity (other than in accordance with Section 3.10 of the Indenture) or
(d) amend the Certificate of Trust (other than as may be required by the Statutory Trust Statute).



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ARTICLE V.

AUTHORITY AND DUTIES OF OWNER TRUSTEE




     Section 5.1.
General Authority. The Owner Trustee is authorized and directed to execute and
deliver the Basic Documents to which the Trust is named as a party and each certificate or other
document
attached as an exhibit to or contemplated by the Basic Documents to which the Trust is named
as a party and any amendment thereto, in each case, in such form as the Majority Certificateholders
will approve as evidenced conclusively by the Owner Trustee’s execution thereof, and on behalf of
the Trust, to direct the Indenture Trustee to authenticate and deliver Class A-1 Notes in the
aggregate principal amount of $140,000,000, Class A-2a Notes in the aggregate principal amount of
$60,000,000, Class A-2b Notes in the aggregate principal amount of $155,000,000, Class A-3a Notes
in the aggregate principal amount of $35,000,000, Class A-3b Notes in the aggregate principal
amount of $72,000,000, Class A-4a Notes in the aggregate principal amount of $36,330,000 and Class
A-4b Notes in the aggregate principal amount of $100,000,000. In addition to the foregoing, the
Owner Trustee is authorized, but will not be obligated, to take all actions required of the Trust
pursuant to the Basic Documents. The Owner Trustee is further authorized from time to time to take
such action as the Instructing Party recommends with respect to the Basic Documents.



     Section 5.2.
General Duties. It will be the duty of the Owner Trustee to discharge (or cause to be
discharged) all of its responsibilities pursuant to the terms of this Agreement and to administer
the Trust in the interest of the Holders, subject to the Basic Documents and in accordance with the
provisions of this Agreement. Notwithstanding the foregoing, the Owner Trustee is deemed to have
discharged its duties and responsibilities under the Basic Documents to the extent the Servicer or
Administrator has agreed to perform any act or to discharge any duty of the Trust or the Owner
Trustee hereunder or under any Basic Document, and the Owner Trustee will not be liable for the
default or failure of the Servicer or Administrator to carry out its obligations.



     Section 5.3.
Action upon Instruction.



          (a) Subject to Article IV, the Security Insurer (so long as any Class A Notes are
outstanding and an Insurer Default will not have occurred and be continuing) or the Majority
Certificateholders (if an Insurer Default has occurred and is continuing or if no Class A Notes are
outstanding) (the “Instructing Party”) has the exclusive right to direct the actions of the
Owner Trustee in the management of the Trust. The Instructing Party will ensure that such
instructions are not inconsistent with the express terms set forth herein or in any Basic Document.
The Instructing Party will not instruct the Owner Trustee in a manner inconsistent with the Basic
Documents.




          (b) The Owner Trustee will not be required to take any action hereunder or under any Basic
Document if the Owner Trustee has reasonably determined, or has been advised by counsel, that such
action is likely to result in liability on the part of the Owner Trustee or is contrary to the
terms hereof or of any Basic Document or is otherwise contrary to law.




          (c) Whenever the Owner Trustee is unable to decide between alternative courses of action
permitted or required by the terms of this Agreement or any Basic Document,



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the Owner Trustee will
promptly give notice (in such form as will be appropriate under the circumstances) to the
Instructing Party requesting instruction as to the course of action to be adopted, and to the
extent the Owner Trustee acts in good faith in accordance with any written instruction of the
Instructing Party received, the Owner Trustee will not be liable on account of such action to any
Person. If the Owner Trustee will not have received appropriate instruction within 10 days of such
notice (or within such shorter period of time as reasonably may be specified in such notice or may
be necessary under the circumstances) it may, but will be under no duty to, take or refrain from
taking such action, not inconsistent with the Basic Documents, as it will deem to be in the best
interests of the Certificateholders, and will have no liability to any Person for such action or
inaction.




          (d) If the Owner Trustee is unsure as to the application of any provision of this Agreement or
any Basic Document or any such provision is ambiguous as to its application, or is, or appears to
be, in conflict with any other applicable provision, or if this Agreement permits any determination
by the Owner Trustee or is silent or is incomplete as to the course of action that the Owner
Trustee is required to take with respect to a particular set of facts, the Owner Trustee may give
notice (in such form as will be appropriate under the circumstances) to the Instructing Party
requesting instruction and, to the extent that the Owner Trustee acts or refrains from acting in
good faith in accordance with any such instruction received, the Owner Trustee will not be liable,
on account of such action or inaction, to any Person. If the Owner Trustee will not have received
appropriate instruction within 10 days of such notice (or within such shorter period of time as
reasonably may be specified in such notice or may be necessary under the circumstances) it may, but
will be under no duty to, take or refrain from taking such action, not inconsistent with the Basic
Documents, as it will deem to be in the best interests of the Certificateholders, and will have no
liability to any Person for such action or inaction.




     Section 5.4.
No Duties Except as Specified in this Agreement or in Instructions. The Owner Trustee
will not have any duty or obligation to manage, make any payment with respect to, register, record,
sell, dispose of, or otherwise deal with the Owner Trust Estate, or to otherwise take or refrain
from taking any action under, or in connection with, any document contemplated hereby to which the
Owner Trustee is a party, except as expressly provided by the terms of this Agreement or in any
document or written instruction received by the Owner Trustee pursuant to Section 5.3; and
no implied duties or obligations will be read into this Agreement or any Basic Document against the
Owner Trustee. The Owner Trustee will have no responsibility for filing any financing or
continuation statement in any public office at any time or to otherwise perfect or maintain the
perfection of any security interest or lien granted to it hereunder or to prepare or file any
filing for the Trust with the Securities and Exchange Commission or to record this Agreement or any
Basic Document. The Owner Trustee nevertheless agrees that it will, at its own cost and expense,
promptly take all action as may be necessary to discharge any Liens on any part of the Owner Trust
Estate that result from
actions by, or claims against, the Owner Trustee (solely in its individual capacity) and that
are not related to the ownership or the administration of the Owner Trust Estate.



     Section 5.5.
No Action Except under Specified Documents or Instructions. The Owner Trustee will
not manage, control, use, sell, dispose of or otherwise deal with any part of the Owner Trust
Estate except (a) in accordance with the powers granted to and the authority conferred upon the
Owner Trustee pursuant to this Agreement, (b) in accordance with the Basic



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Documents or (c) in
accordance with any document or instruction delivered to the Owner Trustee pursuant to Section
5.3.



     Section 5.6.
Restrictions. The Owner Trustee will not take any action (a) that is inconsistent
with the purposes of the Trust set forth in Section 2.3 or (b) that, to the actual
knowledge of the Owner Trustee, would result in the Trust’s becoming taxable as a corporation for
federal income tax purposes. No Certificateholder will direct the Owner Trustee to take action
that would violate the provisions of this Section 5.6.



ARTICLE VI.

CONCERNING THE OWNER TRUSTEE




     Section 6.1.
Acceptance of Trusts and Duties. The Owner Trustee accepts the trusts hereby created
and agrees to perform its duties hereunder with respect to such trusts but only upon the terms of
this Agreement. The Owner Trustee also agrees to disburse all moneys actually received by it
constituting part of the Owner Trust Estate upon the terms of the Basic Documents. The Owner
Trustee will not be answerable or accountable hereunder or under any Basic Document under any
circumstances, except (i) for its own willful misconduct, bad faith or gross negligence, (ii) in
the case of the inaccuracy of any representation or warranty contained in Section 6.3
expressly made by the Owner Trustee, (iii) for liabilities arising from the failure of the Owner
Trustee to perform obligations expressly undertaken by it in the last
sentence of 
Section
5.4 hereof, and (iv) for taxes, fees or other charges on, based on or measured by, any fees,
commissions or compensation received by the Owner Trustee. In particular, but not by way of
limitation (and subject to the exceptions set forth in the preceding sentence):



          (a) the Owner Trustee will not be liable for any error of judgment made by a Responsible
Officer of the Owner Trustee;




          (b) the Owner Trustee will not be liable with respect to any action taken or omitted to be
taken by it in accordance with the instructions of the Instructing Party, the Servicer or the
Majority Certificateholders;




          (c) no provision of this Agreement or any Basic Document will require the Owner Trustee to
expend or risk funds or otherwise incur any financial liability in the performance of any of its
rights or powers hereunder or under any Basic
Document if the Owner Trustee has reasonable grounds for believing that repayment of such
funds or adequate indemnity against such risk or liability is not reasonably assured or provided to
it;




          (d) under no circumstances will the Owner Trustee be liable for indebtedness evidenced by or
arising under any of the Basic Documents, including the principal of and interest on the Notes;




          (e) the Owner Trustee will not be responsible for or in respect of the validity or sufficiency
of this Agreement or for the due execution hereof by the Depositor or for the form, character,
genuineness, sufficiency, value or validity of any of the Owner Trust Estate or for or in respect
of the validity or sufficiency of the Basic Documents, other than the certificate of authentication
on the Certificates, and the Owner Trustee will in no event assume or incur any



17









 






liability, duty or
obligation to the Security Insurer, Indenture Trustee, any Noteholder or to any Certificateholder,
other than as expressly provided for herein;




          (f) the Owner Trustee will not be liable for the default or misconduct of the Security
Insurer, the Administrator, the Indenture Trustee, or the Servicer under any of the Basic Documents
or otherwise and the Owner Trustee has no obligation or liability to perform the obligations under
the Basic Documents that are required to be performed by the Administrator, the Indenture Trustee
or the Servicer under the Sale and Servicing Agreement; and




          (g) the Owner Trustee will be under no obligation to exercise any of the rights or powers
vested in it by this Agreement, or to institute, conduct or defend any litigation under this
Agreement or otherwise or in relation to this Agreement or any Basic Document, at the request,
order or direction of the Instructing Party or the Majority Certificateholders, unless such
Instructing Party or Majority Certificateholders has offered to the Owner Trustee security or
indemnity satisfactory to it against the costs, expenses and liabilities that may be incurred by
the Owner Trustee therein or thereby. The right of the Owner Trustee to perform any discretionary
act enumerated in this Agreement or in any Basic Document will not be construed as a duty, and the
Owner Trustee will not be answerable for other than its gross negligence, bad faith or willful
misconduct in the performance of any such act.




     With respect to the Security Insurer or Instructing Party, the Owner Trustee undertakes to
perform or observe only such of the covenants and obligations of the Owner Trustee as are expressly
set forth in this Agreement, and no implied covenants or obligations with respect to the Security
Insurer or Instructing Party shall be read into the Basic Documents against the Owner Trustee. The
Owner Trustee shall not be deemed to owe any fiduciary duty to the Security Insurer or Instructing
Party, and shall not be liable to any such person for the failure of the Trust to perform its
obligations to such persons other than as a result of the gross negligence or willful misconduct of
the Owner Trustee in the performance of its express obligations under this Agreement.



     Section 6.2.
Furnishing of Documents. The Owner Trustee will furnish to a Certificateholder promptly upon receipt of a written
request therefor, duplicates or copies of all reports, notices, requests, demands, certificates,
financial statements and any other instruments furnished to the Owner Trustee under the Basic
Documents.



     Section 6.3.
Representations and Warranties. The Owner Trustee hereby represents and warrants to
the Depositor, the Holder and the Security Insurer (which will have relied on such representations
and warranties in issuing the Note Policy), that:



          (a) It is a Delaware banking corporation, duly organized and validly existing in good standing
under the laws of the State of Delaware. It has all requisite corporate power and authority to
execute, deliver and perform its obligations under this Agreement.




          (b) It has taken all corporate action necessary to authorize the execution and delivery by it
of this Agreement, and this Agreement will be executed and delivered by one of its officers who is
duly authorized to execute and deliver this Agreement on its behalf.




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          (c) Neither the execution nor the delivery by it of this Agreement, nor the consummation by it
of the transactions contemplated hereby nor compliance by it with any of the terms or provisions
hereof will contravene any federal or Delaware state law, governmental rule or regulation governing
the banking or trust powers of the Owner Trustee or any judgment or order binding on it, or
constitute any default under its charter documents or by-laws or any indenture, mortgage, contract,
agreement or instrument to which it is a party or by which any of its properties may be bound.




          (d) This Agreement constitutes a legal, valid and binding obligation of the Owner Trustee,
enforceable against the Owner Trustee in accordance with its terms, subject as to enforceability to
applicable bankruptcy, insolvency, reorganization, conservatorship, receivership, liquidation and
other similar laws affecting enforcement of the rights of creditors of banks generally and to
equitable limitations on the availability of specific remedies.




     Section 6.4.
Reliance; Advice of Counsel.



          (a) The Owner Trustee will incur no liability to anyone in acting upon any signature,
instrument, notice, resolution, request, consent, order, certificate, report, opinion, bond or
other document or paper believed by it to be genuine and believed by it to be signed by the proper
party or parties. The Owner Trustee may accept a certified copy of a resolution of the board of
directors or other governing body of any corporate party as conclusive evidence that such
resolution has been duly adopted by such body and that the same is in full force and effect. As to
any fact or matter the method of the determination of which is not specifically prescribed herein,
the Owner Trustee may for
all purposes hereof rely on a certificate, signed by the president or any vice president or by
the treasurer, secretary or other authorized officers of the relevant party, as to such fact or
matter, and such certificate will constitute full protection to the Owner Trustee for any action
taken or omitted to be taken by it in good faith in reliance thereon.




          (b) In the exercise or administration of the trusts hereunder and in the performance of its
duties and obligations under the Basic Documents, the Owner Trustee (i) may act directly or through
its agents or attorneys pursuant to agreements entered into with any of them, and the Owner Trustee
will not be liable for the conduct or misconduct of such agents or attorneys if such agents or
attorneys will have been selected by the Owner Trustee with reasonable care, and (ii) may consult
with counsel, accountants and other skilled persons to be selected in good faith. The Owner
Trustee will not be liable for anything done, suffered or omitted in good faith by it in accordance
with the opinion or advice of any such counsel, accountants or other such persons and according to
such opinion not contrary to this Agreement or any Basic Document.




     Section 6.5.
Not Acting in Individual Capacity. Except as provided in this Article VI, in
accepting the trust hereby created Wilmington Trust Company acts solely as Owner Trustee hereunder
and not in its individual capacity and all Persons having any claim against the Owner Trustee by
reason of the transactions contemplated by this Agreement or any Basic Document will look only to
the Owner Trust Estate for payment or satisfaction thereof.



     Section 6.6.
Owner Trustee Not Liable for Certificates or Receivables. The recitals contained
herein and in the Certificates (other than the signature and countersignature of the



19









 







Owner Trustee
on the Certificates) will be taken as the statements of the Certificateholders and the Owner
Trustee assumes no responsibility for the correctness thereof. The Owner Trustee makes no
representations as to the validity or sufficiency of this Agreement, of any Basic Document or of
any Certificate (other than the signature and countersignature of the Owner Trustee on any
Certificate) or the Notes, or of any Receivable or related documents. The Owner Trustee will at no
time have any responsibility or liability for or with respect to the legality, validity and
enforceability of any Receivable, or the perfection and priority of any security interest created
by any Receivable in any Financed Vehicle or the maintenance of any such perfection and priority,
or for or with respect to the sufficiency of the Owner Trust Estate or its ability to generate the
payments to be distributed to Certificateholders under this Agreement or the Noteholders under the
Indenture, including: the existence, condition and ownership of any Financed Vehicle; the
existence and enforceability of any insurance thereon; the existence and contents of any Receivable
on any computer or other record thereof; the validity of the assignment of any Receivable to the
Trust or of any intervening assignment; the completeness of any Receivable; the performance or
enforcement of any Receivable; the compliance by the Depositor, the Servicer or any other Person
with any warranty or representation made under any Basic Document or in any related document or the
accuracy of any such warranty or representation or any action of the Indenture Trustee or the
Servicer or any subservicer taken in the name of the Owner Trustee.



     Section 6.7.
Owner Trustee May Own Notes. The Owner Trustee in its individual or any other
capacity may become the owner or pledgee of the Notes and may deal with the Depositor, the
Indenture Trustee and the Servicer in banking transactions with the same rights as it would have if
it were not Owner Trustee.



     Section 6.8.
Payments from Owner Trust Estate. All payments to be made by the Owner Trustee under
any of the Basic Documents to which the Trust or the Owner Trustee is a party will be made only
from the income and proceeds of the Owner Trust Estate and only to the extent that the Trust will
have received income or proceeds from the Owner Trust Estate to make such payments in accordance
with the terms hereof. Wilmington Trust Company, or any successor thereto, in its individual
capacity, will not be liable for any amounts payable under any of the Basic Documents to which the
Trust or the Owner Trustee is a party.



20









 





     Section 6.9.
Doing Business in Other Jurisdictions. Notwithstanding anything contained herein to
the contrary, neither Wilmington Trust Company or any successor thereto, nor the Owner Trustee will
be required to take any action in any jurisdiction other than in the State of Delaware if the
taking of such action will, even after the appointment of a co-trustee or separate trustee in
accordance with Section 9.5 hereof, (a) require the consent or approval or authorization or
order of or the giving of notice to, or the registration with or the taking of any other action in
respect of, any state or other governmental authority or agency of any jurisdiction other than the
State of Delaware; (b) result in any fee, tax or other governmental charge under the laws of the
State of Delaware becoming payable by Wilmington Trust Company (or any successor thereto); or (c)
subject Wilmington Trust Company (or any successor thereto) to personal jurisdiction in any
jurisdiction other than the State of Delaware for causes of action arising from acts unrelated to
the consummation of the transactions by Wilmington Trust Company (or any successor thereto) or the
Owner Trustee, as the case may be, contemplated hereby.



     Section 6.10.
Legal Proceedings. As required by Regulation AB, the Owner Trustee will promptly
notify the Servicer, the Depositor and the Issuer (with a copy to the Security Insurer) of the
commencement or, if applicable, the termination of any and all legal proceedings of which any
property of the Owner Trustee is the subject, that is material to the Class A Noteholders (as
defined in the Indenture) and any such proceedings known to be contemplated by governmental
authorities. In addition, the Owner Trustee will furnish to the Servicer, the Depositor and the
Issuer (with a copy to the Security Insurer), in writing, the necessary disclosure describing such
proceedings required to be disclosed under Item 1117 of Regulation AB, for inclusion in reports
filed pursuant to the Exchange Act.



ARTICLE VII.

COMPENSATION OF OWNER TRUSTEE




     Section 7.1.
Owner Trustee’s Fees and Expenses. The Owner Trustee will receive as compensation for
its services hereunder such fees as have been separately agreed upon before the date hereof between
Triad and the Owner Trustee, and the Owner Trustee will be entitled to be reimbursed by Triad for
its other reasonable expenses hereunder, including the reasonable compensation, expenses and
disbursements of such agents, representatives, experts and counsel as the Owner Trustee may employ
in connection with the exercise and performance of its rights and its duties hereunder and under
the Basic Documents.



     Section 7.2.
Indemnification. Triad will indemnify the Owner Trustee and its officers, directors,
employees, successors, assigns, agents and servants (collectively, the “Indemnified
Parties”) from and against, any and all costs, expenses, losses, damages, claims and
liabilities (collectively, “Expenses”), arising out of or resulting from the Basic
Documents, the Owner Trust Estate, the administration of the Owner Trust Estate or the action or
inaction of the Owner Trustee hereunder, except that Triad will not be liable for or required to
indemnify the Owner Trustee from and against Expenses (i) arising or resulting from any of the
matters described in the third sentence of Section 6.1 and (ii) constituting federal, state
or other taxes arising out of any fees paid to the Owner Trustee pursuant to the Basic Documents.




21











 





     Indemnification under this Section 7.2 will include reasonable fees and expenses of
counsel and expenses of litigation and the indemnities contained in this Section 7.2 and
the rights under Section 7.1 will survive the resignation or termination of the Owner
Trustee or the termination of this Agreement. In any event of any claim, action or proceeding for
which indemnity will be sought pursuant to this Section 7.2, the Owner Trustee’s choice of
legal counsel will be subject to the approval of Triad which approval will not be unreasonably
withheld.



     Section 7.3. Payments to the Owner Trustee. Any amounts paid to the Owner Trustee pursuant to this
Article VII will be deemed not to be a part of the Owner Trust Estate immediately after such
payment.



     Section 7.4. Non-recourse Obligations. Notwithstanding anything in this Agreement or any Basic
Document, the Owner Trustee agrees in its individual capacity and in its capacity as Owner Trustee
for the Trust that all obligations of the Trust to the Owner Trustee individually or as Owner
Trustee for the Trust will be with recourse to the Owner Trust Estate only and specifically will be
without recourse to the assets of the Holders.



ARTICLE VIII.

TERMINATION OF TRUST AGREEMENT




     Section 8.1. Termination of Trust Agreement.



          (a) This Agreement and the Trust will terminate in accordance with
Section 3808 of the Statutory Trust Statute and be of no further force or effect upon the
later of (i) the maturity or other liquidation of the last Receivable (including the purchase by
the Servicer at its option of the corpus of the Trust as described in Section 10.1 of the Sale and
Servicing Agreement) and the subsequent distribution of amounts in respect of such Receivables as
provided in the Basic Documents, or (ii) the payment to the Certificateholders of all amounts
required to be paid to them pursuant to this Agreement and the payment to the Security Insurer of
all amounts payable or reimbursable to it pursuant to the Sale and Servicing Agreement and the
Insurance Agreement and the payment to the Swap Counterparty of all amounts payable to it pursuant
to the Swap Agreement; provided, however, that the rights to indemnification under
Section 7.2 and the rights under Section 7.1 will survive the termination of the
Trust. Triad or the Servicer will promptly notify the Owner Trustee and the Security Insurer of
any prospective termination pursuant to this Section 8.1. The bankruptcy, liquidation,
dissolution, death or incapacity of any Certificateholder will not (x) operate to terminate this
Agreement or the Trust, nor (y) entitle such Certificateholder’s legal representatives or heirs to
claim an accounting or to take any action or proceeding in any court for a partition or winding up
of all or any part of the Trust or Owner Trust Estate nor (z) otherwise affect the rights,
obligations and liabilities of the parties hereto.




          (b) Neither the Depositor nor the Certificateholders will be entitled to revoke or terminate
the Trust.




          (c) Notice of any termination of the Trust, specifying the Distribution Date upon which each
Certificateholder will surrender its Certificate to the Owner Trustee for




22









 







payment of the final distribution, if any, and cancellation, will be given by the Owner Trustee by letter to the
Certificateholders mailed within five Business Days of receipt of notice of such termination from
the Servicer given pursuant to Section 10.1(c) of the Sale and Servicing Agreement, stating (i) the
Distribution Date upon or with respect to which final payment of each Certificate will be made upon
presentation and surrender of such Certificate at the office of the Owner Trustee therein
designated, (ii) the amount of any such final payment and (iii) that the Record Date otherwise
applicable to such Distribution Date is not applicable, payments being made only upon presentation
and surrender of such Certificate at the office of the Owner Trustee therein specified. The Owner
Trustee will give such notice to the Indenture Trustee at the time such notice is given to the
Certificateholders. Upon presentation and surrender of a Certificate, the Owner Trustee will
instruct the Indenture Trustee to cause to be distributed to the Certificateholders thereof amounts
distributable on such Distribution Date pursuant to Section 5.7 of the Sale and Servicing
Agreement.




          If a Certificateholder does not surrender its Certificate for cancellation within six months
after the date specified in the above mentioned written notice, the Owner Trustee will give a
second written notice to such Certificateholder to surrender its Certificate for cancellation and
receive the final distribution with respect thereto. If within one year after the second notice
the Certificate will not have been surrendered for cancellation, the Owner Trustee may take
appropriate steps, or may appoint an agent to take appropriate steps, to contact such
Certificateholder concerning surrender of its Certificate, and the cost thereof will be paid out of
the funds and other assets that will remain subject to this Agreement. Any funds remaining in the
Trust after exhaustion of such remedies will be distributed, subject to applicable escheat laws, by
the Owner Trustee to the Certificateholders.




          (d) Upon the completion of the winding up of the Trust in accordance with Section 3808 of the
Statutory Trust Statute and its termination, the Owner Trustee will cause the Certificate of Trust
to be canceled by filing a certificate of cancellation with the Secretary of State in accordance
with the provisions of Section 3810 of the Statutory Trust Statute.




ARTICLE IX.

SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES




     Section 9.1. Eligibility Requirements for Owner Trustee. The Owner Trustee will at all times be a
corporation (i) satisfying the provisions of Section 3807(a) of the Statutory Trust Statute;
(ii) authorized to exercise corporate trust powers; (iii) having a combined capital and surplus of
at least $50,000,000 and subject to supervision or examination by federal or state authorities; and
(iv) acceptable to the Security Insurer in its sole discretion (so long as an Insurer Default will
not have occurred and be continuing). If such corporation will publish reports of condition at
least annually, pursuant to law or to the requirements of the aforesaid supervising or examining
authority, then for the purpose of this Section 9.1, the combined capital and surplus of such corporation will be deemed to be its
combined capital and surplus as set forth in its most recent report of condition so published. In
case at any time the Owner Trustee will cease to be eligible in accordance with the provisions of
this Section 9.1, the Owner Trustee will resign immediately in the manner and with the effect
specified in Section 9.2.



     Section 9.2. Resignation or Removal of Owner Trustee. The Owner Trustee may at



23









 




any time resign and be discharged from the trusts hereby created by giving written notice thereof to the Depositor, the
Security Insurer, the Administrator and the Servicer. Upon receiving such notice of resignation,
the Administrator will promptly appoint a successor Owner Trustee by written instrument, in
duplicate, one copy of which instrument will be delivered to the resigning Owner Trustee and one
copy to the successor Owner Trustee, provided that the Administrator has received written
confirmation from each of the Rating Agencies that the proposed appointment will not result in an
increased capital charge to the Security Insurer by either of the Rating Agencies. If no successor
Owner Trustee has been so appointed and has accepted appointment within 30 days after the giving of
such notice of resignation, the resigning Owner Trustee or the Security Insurer may petition any
court of competent jurisdiction for the appointment of a successor Owner Trustee.




     If at any time the Owner Trustee will cease to be eligible in accordance with the provisions
of Section 9.1 and will fail to resign after written request therefor by the Administrator,
or if at any time the Owner Trustee will be legally unable to act, or will be adjudged bankrupt or
insolvent, or a receiver of the Owner Trustee or of its property will be appointed, or any public
officer will take charge or control of the Owner Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation, then the Administrator with the consent of
the Security Insurer (so long as an Insurer Default will not have occurred and be continuing) may
remove the Owner Trustee. If the Administrator removes the Owner Trustee under the authority of
the immediately preceding sentence, the Administrator will promptly appoint a successor Owner
Trustee by written instrument, in duplicate, one copy of which instrument will be delivered to the
outgoing Owner Trustee so removed, one copy to the Security Insurer and one copy to the successor
Owner Trustee and payment of all fees owed to the outgoing Owner Trustee.



     Any resignation or removal of the Owner Trustee and appointment of a successor Owner Trustee
pursuant to any of the provisions of this Section 9.2 will not become effective until
acceptance of appointment by the successor Owner Trustee pursuant to Section 9.3 and
payment of all fees and expenses owed to the outgoing Owner Trustee. The Administrator will
provide notice of such resignation or removal of the Owner Trustee to each of the Rating Agencies.



     Section 9.3. Successor Owner Trustee. Any successor Owner Trustee appointed pursuant to
Section 9.2 will execute, acknowledge and deliver to the Depositor, the Servicer, the
Administrator, the Security Insurer and to its predecessor Owner Trustee an instrument accepting
such appointment under this Agreement, and thereupon the resignation or removal of the predecessor
Owner Trustee will become effective and such successor Owner Trustee, without any further act, deed
or conveyance, will become fully vested with all the rights, powers, duties and obligations of
its predecessor under this Agreement, with like effect as if originally named as Owner Trustee.
The predecessor Owner Trustee will upon payment of its fees and expenses deliver to the successor
Owner Trustee all documents and statements and monies held by it under this Agreement; and the
Depositor, the Administrator and the predecessor Owner Trustee will execute and deliver such
instruments and do such other things as may reasonably be required for fully and certainly vesting
and confirming in the successor Owner Trustee all such rights, powers, duties and obligations.



24









 





     No successor Owner Trustee will accept appointment as provided in this Section 9.3
unless at the time of such acceptance such successor Owner Trustee will be eligible pursuant to
Section 9.1.



     Upon acceptance of appointment by a successor Owner Trustee pursuant to this
Section 9.3, the Administrator will mail notice of the successor of such Owner Trustee to
the Certificateholders, the Indenture Trustee, the Noteholders, the Security Insurer and the Rating
Agencies. If the Administrator fails to mail such notice within 10 days after acceptance of
appointment by the successor Owner Trustee, the successor Owner Trustee will cause such notice to
be mailed at the expense of the Administrator.



     Section 9.4. Merger or Consolidation of Owner Trustee. Any corporation into which the Owner
Trustee may be merged or converted or with which it may be consolidated, or any corporation
resulting from any merger, conversion or consolidation to which the Owner Trustee will be a party,
or any corporation succeeding to all or substantially all of the corporate trust business of the
Owner Trustee, will be the successor of the Owner Trustee hereunder, provided such corporation will
be eligible pursuant to Section 9.1, without the execution or filing of any instrument or any
further act on the part of any of the parties hereto, anything herein to the contrary
notwithstanding; provided further that the Owner Trustee will mail notice of such merger or
consolidation to the Rating Agencies.



     Section 9.5. Appointment of Co-Trustee or Separate Trustee. Notwithstanding any other provisions
of this Agreement, at any time, for the purpose of meeting any legal requirements of any
jurisdiction in which any part of the Owner Trust Estate or any Financed Vehicle may at the time be
located, the Servicer and the Owner Trustee acting jointly have the power and will execute and
deliver all instruments to appoint one or more Persons approved by the Owner Trustee and the
Security Insurer to act as co-trustee, jointly with the Owner Trustee, or separate trustee or
separate trustees, of all or any part of the Owner Trust Estate, and to vest in such Person, in
such capacity, such title to the Trust, or any part thereof, and, subject to the other provisions
of this Section 9.5, such powers, duties, obligations, rights and trusts as the Servicer and the
Owner Trustee may consider necessary or desirable. If the Servicer has not joined in such
appointment within 15 days after the receipt by it of a request so to do, the Owner Trustee subject
(unless an Insurer Default has occurred and is continuing) to the approval of the Security Insurer
(which approval will not be unreasonably withheld) has the power to make such appointment. No
co-trustee or separate trustee under this Agreement will be required to meet the terms of
eligibility as a successor trustee pursuant to Section 9.1 and no
notice of the appointment of any co-trustee or separate trustee will be required pursuant to
Section 9.3.



     Each separate trustee and co-trustee will, to the extent permitted by law, be appointed and
act subject to the following provisions and conditions:



          (a) all rights, powers, duties and obligations conferred or imposed upon the Owner Trustee
will be conferred upon and exercised or performed by the Owner Trustee and such separate trustee or
co-trustee jointly (it being understood that such separate trustee or co-trustee is not authorized
to act separately without the Owner 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 Owner
Trustee will be incompetent or unqualified to perform such act or




25









 







acts, in which event such rights, powers, duties and obligations (including the holding of title to the Trust or any portion thereof
in any such jurisdiction) will be exercised and performed singly by such separate trustee or
co-trustee, but solely at the direction of the Owner Trustee;




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




          (c) the Administrator and the Owner Trustee acting jointly may at any time accept the
resignation of or remove any separate trustee or co-trustee.




     Any notice, request or other writing given to the Owner Trustee will be deemed to have been
given to each of the then separate trustees and co-trustees, as effectively as if given to each of
them. Every instrument appointing any separate trustee or co-trustee will refer to this Agreement
and the conditions of this Article IX. 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 Owner Trustee or separately, as may be provided
therein, subject to all the provisions of this Agreement, specifically including every provision of
this Agreement relating to the conduct of, affecting the liability of, or affording protection to,
the Owner Trustee. Each such instrument will be filed with the Owner Trustee and a copy thereof
given to the Servicer and the Security Insurer.



     Any separate trustee or co-trustee may at any time appoint the Owner Trustee, its agent or
attorney-in-fact with full power and authority, to the extent not prohibited by law, to do any
lawful act under or in respect of this Agreement on its behalf and in its name. If any separate
trustee or co-trustee should die, become incapable of acting, resign or be removed, all of its
estates, properties, rights, remedies and trusts will vest in and be exercised by the Owner
Trustee, to the extent permitted by law, without the appointment of a new or successor trustee.



ARTICLE X.

MISCELLANEOUS




     Section 10.1. Supplements and Amendments.



          (a) This Agreement may be amended by the Depositor, the Administrator and the Owner Trustee,
with the prior written consent of the Security Insurer (so long as an Insurer Default will not have
occurred and be continuing) and with prior written notice to the Rating Agencies, without the
consent of any of the Noteholders or the Certificateholders, (i) to cure any ambiguity or defect or
(ii) to correct, supplement or modify any provisions in this Agreement; provided,
however, that such action will not, as evidenced by an Opinion of Counsel which may be
based upon a certificate of the Servicer, adversely affect in any material respect the interests of
any Noteholder or Certificateholder.




          (b) This Agreement may also be amended from time to time, with the prior written consent of
the Security Insurer (so long as an Insurer Default will not have occurred and be continuing), by
the Depositor, the Administrator and the Owner Trustee, with prior written notice to the Rating
Agencies, to the extent such amendment materially and adversely affects the interests of the
Noteholders, with the consent of the Noteholders evidencing not less than a majority of the
Outstanding Amount of the Notes, and the consent of the Majority




26









 







Certificateholders (which consent of any Certificateholder or Noteholder given pursuant to this Section 10.1(b) or pursuant
to any other provision of this Agreement will be conclusive and binding on such Certificateholder
or Noteholder) for the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Agreement or of modifying in any manner the rights of the Noteholders
or the Certificateholders; provided, however, that, subject to the express rights
of the Security Insurer under the Basic Documents, no such amendment will (i) increase or reduce in
any manner the amount of, or accelerate or delay the timing of, collections of payments on
Receivables or distributions that will be required to be made for the benefit of the Noteholders or
the Certificateholders or (ii) reduce the aforesaid percentage of the Outstanding Amount of the
Notes and aforesaid percentage of the Certificateholders required to consent to any such amendment,
without the consent of the Holders of all the outstanding Notes and Certificates.




          Promptly after the execution of any such amendment or consent, the Owner Trustee will furnish
written notification of the substance of such amendment or consent to the Certificateholders, the
Indenture Trustee, the Security Insurer, and each of the Rating Agencies.




          It will not be necessary for the consent of the Certificateholders, the Noteholders or the
Indenture Trustee pursuant to this Section 10.1(b) to approve the particular form of any
proposed amendment or consent, but it will be sufficient if such consent will approve the substance
thereof. The manner of obtaining such consents (and any other consents of the Certificateholders
provided for in this Agreement or in any other Basic Document) and of evidencing the authorization
of the execution thereof by the Certificateholders will be subject to such reasonable requirements
as the Owner Trustee may prescribe. Promptly after the execution of any amendment to the
Certificate of Trust, the Owner Trustee will cause the filing of such amendment with the Secretary
of State.




          Prior to the execution of any amendment to this Agreement or the Certificate of Trust, the
Owner Trustee will be entitled to receive and rely upon an Opinion of Counsel stating that the
execution of such amendment is authorized or permitted by this Agreement and that all conditions
precedent to the execution and delivery of such amendment have been satisfied. The
Owner Trustee may, but will not be obligated to, enter into any such amendment which affects
the Owner Trustee’s own rights, duties or immunities under this Agreement or otherwise.




     Section 10.2. No Legal Title to Owner Trust Estate in Certificateholders. No Certificateholder will
have legal title to any part of the Owner Trust Estate. The Certificateholders will be entitled to
receive distributions in accordance with Article VIII. No transfer, by operation of law or
otherwise, of any right, title or interest of a Certificateholder to and in its ownership interest
in the Owner Trust Estate will operate to terminate this Agreement or the trust hereunder or
entitle any transferee to an accounting or to the transfer to it of legal title to any part of the
Owner Trust Estate.



     Section 10.3. Limitations on Rights of Others. The provisions of this Agreement are solely for the
benefit of the Owner Trustee, the Depositor, the Certificateholders, the Servicer and, to the
extent expressly provided herein, the Security Insurer, the Swap Counterparty, the Indenture
Trustee and the Noteholders, and nothing in this Agreement, whether express or implied, will be
construed to give to any other Person any legal or equitable right, remedy or



27









 




claim in the Owner Trust Estate or under or in respect of this Agreement or any covenants, conditions or provisions
contained herein.




     Section 10.4. Notices.



          (a) All demands, notices and communications hereunder will be in writing and will be deemed to
have been duly given to the addressee if mailed, by first-class registered mail, postage prepaid
service, confirmed facsimile transmission, or a nationally recognized express courier, as follows:




          If to the Administrator:




	 	 	 	 	 
	 

	 	Triad Financial Corporation
	 	 
	 

	 	7711 Center Avenue, Suite 100	 	 
	 

	 	Huntington Beach, CA 92647	 	 
	 

	 	Attention: Chief Financial Officer	 	 






          If to the Owner Trustee:




	 	 	 	 	 
	 
	 	Wilmington Trust Company	 	 
	 
	 	1100 North Market Street	 	 
	 
	 	Wilmington, DE  19890	 	 
	 
	 	Attention: Corporate Trust Administration	 	 






          If to the Depositor:




	 	 	 	 	 
	 
	 	Triad Financial Special Purpose LLC	 	 
	 
	 	7711 Center Avenue, Suite 390	 	 
	 
	 	Huntington Beach, CA  92647	 	 
	 
	 	Attention: Chief Financial Officer	 	 






          If to the Security Insurer:




	 	 	 	 	 
	 
	 	Financial Security Assurance Inc.	 	 
	 
	 	31 West 52nd Street	 	 
	 
	 	New York, NY  10019	 	 





(in each case in which notice or other communication to the Security Insurer refers to an Event of
Default, a claim on the Note Policy or with respect to which failure on the part of the Security
Insurer to respond will be deemed to constitute consent or acceptance, then a copy of such notice
or other communication should also be sent to the attention of the General Counsel and the
Head-Financial Guaranty Group “URGENT MATERIAL ENCLOSED”); or, as to each party, at such
other address as will be designated by such party in a written notice to each other party. Any
such demand, notice or communication hereunder will be deemed to have been received on the date
delivered to or received at the premises of the addressee as evidenced by the date noted on the
return receipt.




28









 








          (b) Any notice required or permitted to be given to a Certificateholder will be given by
first-class mail, postage prepaid, at the address of the Holder. Any notice so mailed within the
time prescribed in this Agreement will be conclusively presumed to have been duly given, whether or
not such Certificateholder receives such notice.




     Section 10.5. Severability. Any provision of this Agreement that is prohibited or unenforceable in
any jurisdiction will, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction will not invalidate or render unenforceable such provision in
any other jurisdiction.



     Section 10.6. Separate Counterparts. This Agreement may be executed by the parties hereto in
separate counterparts, each of which when so executed and delivered will be an original, but all
such counterparts will together constitute but one and the same instrument.



     Section 10.7. Assignments. This Agreement will inure to the benefit of and be binding upon the
parties hereto, the Security Insurer, the Swap Counterparty and their respective successors and
permitted assigns.



     Section 10.8. No Recourse. Each Certificateholder by accepting a Certificate acknowledges that a Certificate
represents a beneficial interest in the Trust only and does not represent interests in or
obligations of the Depositor, the Servicer, the Owner Trustee, the Indenture Trustee, the Security
Insurer or any Affiliate thereof and no recourse may be had against such parties or their assets,
except as may be expressly set forth or contemplated in the Certificates or the Basic Documents.



     Section 10.9. No Petition. To the fullest extent permitted by applicable law, the Owner Trustee and
the Administrator, by entering into this Agreement, each Certificateholder, by accepting a
Certificate, and the Indenture Trustee and each Noteholder, by accepting the benefits of this
Agreement, each hereby covenants and agrees that it will not at any time institute against the
Depositor or the Issuer, or join in any institution against the Depositor or the Issuer, of
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or state bankruptcy or similar law in connection with
any obligations relating to the Certificates, the Notes or any of the Basic Documents.



     Section 10.10. Headings. The headings of the various Articles and Sections herein are for
convenience of reference only and will not define or limit any of the terms or provisions hereof.



     Section 10.11. GOVERNING LAW. THIS AGREEMENT WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER WILL BE DETERMINED IN ACCORDANCE WITH
SUCH LAWS.



     Section 10.12. Administrator. The Administrator is authorized to prepare, or cause to be prepared,
execute and deliver on behalf of the Trust all such documents, reports, filings, instruments,
certificates and opinions as it will be the duty of the Trust or Owner Trustee to



29









 




prepare, file or deliver pursuant to the Basic Documents. Upon written request, the Owner Trustee will execute and
deliver to the Administrator a limited power of attorney appointing the Administrator the Trust’s
agent and attorney-in-fact to prepare, or cause to be prepared, execute and deliver all such
documents, reports, filings, instruments, certificates and opinions.




[Remainder of page intentionally left blank.]




30









 





     IN WITNESS WHEREOF, the parties hereto have caused this Trust Agreement to be duly executed by
their respective officers hereunto duly authorized, as of the day and year first above written.



	 	 	 	 	 	 	 
	 	 	WILMINGTON TRUST COMPANY	 	 
	 	 	          Owner Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Rachel L. Simpson	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Rachel L. Simpson	 	 
	 

	 	Title:
	 	Senior Financial Services Officer	 	 
	 
	 	 	 	 	 	 
	 	 	TRIAD FINANCIAL SPECIAL PURPOSE LLC	 	 
	 	 	          Depositor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Mike L. Wilhelms	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Mike L. Wilhelms	 	 
	 

	 	Title:
	 	Senior Vice President and	 	 
	 

	 	 	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	TRIAD FINANCIAL CORPORATION	 	 
	 	 	          Administrator	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Mike L. Wilhelms	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Mike L. Wilhelms	 	 
	 

	 	Title:
	 	Senior Vice President and	 	 
	 

	 	 	 	Chief Financial Officer	 	 






 









 





EXHIBIT A




NUMBER

R-1




SEE REVERSE FOR CERTAIN DEFINITIONS




THIS CERTIFICATE IS NOT TRANSFERABLE,

EXCEPT UNDER THE LIMITED CONDITIONS

SPECIFIED IN THE TRUST AGREEMENT




 






ASSET BACKED CERTIFICATE



evidencing a beneficial ownership interest in certain distributions of the Trust, as defined below,
the property of which includes a pool of retail installment sale contracts secured by new and used
automobiles and light duty trucks.




     THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR THE APPLICABLE SECURITIES LAWS OF ANY STATE. ACCORDINGLY,
TRANSFER OF THIS CERTIFICATE IS SUBJECT TO CERTAIN RESTRICTIONS SET FORTH IN SECTION 3.4 OF THE
TRUST AGREEMENT. BY ITS ACCEPTANCE OF THIS CERTIFICATE THE HOLDER OF THIS CERTIFICATE HAS
REPRESENTED TO THE TRUST AND THE OWNER TRUSTEE THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) AND IS ACQUIRING THIS CERTIFICATE FOR
ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH
OTHERS ALSO ARE QUALIFIED INSTITUTIONAL BUYERS).



     NO SALE, PLEDGE OR OTHER TRANSFER OF THIS CERTIFICATE MAY BE MADE BY ANY PERSON UNLESS
(I) SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR IS EXEMPT FROM THE
REGISTRATION REQUIREMENTS UNDER THE SECURITIES ACT AND SUCH STATE SECURITIES LAWS, (II) SO LONG AS
THIS CERTIFICATE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, SUCH SALE, PLEDGE OR OTHER TRANSFER
IS MADE TO A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES AFTER DUE INQUIRY IS A “QUALIFIED
INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A), ACTING FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT
OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL
BUYERS) TO WHOM NOTICE IS GIVEN THAT THE SALE, PLEDGE OR TRANSFER IS BEING MADE IN RELIANCE ON RULE
144A, OR (III) SUCH SALE, PLEDGE OR OTHER TRANSFER IS OTHERWISE MADE IN A TRANSACTION EXEMPT FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, IN WHICH CASE (A) THE OWNER TRUSTEE WILL
REQUIRE THAT BOTH THE PROSPECTIVE TRANSFEROR AND THE PROSPECTIVE



A-1









 







TRANSFEREE CERTIFY TO THE OWNER TRUSTEE AND THE TRUST IN WRITING THE FACTS SURROUNDING SUCH
TRANSFER, WHICH CERTIFICATION WILL BE IN FORM AND SUBSTANCE SATISFACTORY TO THE OWNER TRUSTEE AND
THE TRUST, AND (B) THE OWNER TRUSTEE MAY REQUIRE A WRITTEN OPINION OF COUNSEL (WHICH WILL NOT BE AT
THE EXPENSE OF THE TRUST OR THE OWNER TRUSTEE) SATISFACTORY TO THE TRUST AND THE OWNER TRUSTEE TO
THE EFFECT THAT SUCH TRANSFER WILL NOT VIOLATE THE SECURITIES ACT. NO SALE, PLEDGE OR OTHER
TRANSFER MAY BE MADE TO ANY ONE PERSON FOR CERTIFICATES WITH A BENEFICIAL INTEREST OF LESS THAN 5%.



     NO TRANSFER OF THIS CERTIFICATE WILL BE PERMITTED TO BE MADE TO ANY PERSON UNLESS THE OWNER
TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEREE TO THE EFFECT THAT THE TRANSFEREE IS NOT
AND IS NOT ACTING ON BEHALF OF OR INVESTING THE ASSETS OF (A) AN “EMPLOYEE BENEFIT PLAN” (AS
DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
(“ERISA”)) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, (B) A “PLAN” (AS DEFINED IN
SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)) THAT IS SUBJECT
TO SECTION 4975 OF THE CODE OR (C) ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE ASSETS OF A PLAN
DESCRIBED IN (A) OR (B) ABOVE BY REASON OF SUCH PLAN’S INVESTMENT IN THE ENTITY (INCLUDING, WITHOUT
LIMITATION, AN INSURANCE COMPANY GENERAL ACCOUNT). EACH TRANSFEREE OF A BENEFICIAL INTEREST IN
THIS CERTIFICATE WILL BE DEEMED TO HAVE MADE THE FOREGOING REPRESENTATION.


(This Certificate does not represent an interest in or obligation of Triad Financial Special
Purpose LLC or any of its Affiliates.)




     THIS CERTIFIES THAT [                                        ] is the registered owner of a nonassessable, fully-paid,
beneficial ownership interest in certain distributions of Triad Automobile Receivables Trust 2007-B
(the “Trust”) formed by Triad Financial Special Purpose LLC, a Delaware limited liability
company (the “Depositor”).



     The Trust was created pursuant to a Trust Agreement dated October 23, 2007, as amended and
restated as of November 21, 2007 (the “Trust Agreement”), among the Depositor, Triad
Financial Corporation (the “Administrator”) and Wilmington Trust Company, as owner trustee
(the “Owner Trustee”), a summary of certain of the pertinent provisions of which is set
forth below. To the extent not otherwise defined herein, the capitalized terms used herein have
the meanings assigned to them in the Trust Agreement.



     This is one of the duly authorized Certificates designated as “Asset Backed Certificates”
(herein called the “Certificate”). Also issued under the Indenture, dated as of November
21, 2007, between the Trust and Citibank, N.A., as indenture trustee, are four classes of Notes
designated as “Class A-1 5.06815% Asset Backed Notes”, “Class A-2a 5.30% Asset Backed Notes”,
“Class A-2b Floating Rate Asset Backed Notes,” “Class A-3a 5.24% Asset Backed Notes,” “Class A-3b
Floating Rate Asset Backed Notes,” “Class A-4a 5.43% Asset Backed Notes” and the “Class A-4b
Floating Rate Asset Backed Notes.” This Certificate is issued under



A-2









 







and is subject to the terms, provisions and conditions of the Trust Agreement, to which Trust
Agreement the holder of this Certificate by virtue of the acceptance hereof assents and by which
such holder is bound. The property of the Trust includes a pool of retail installment sale
contracts secured by new and used automobiles and light duty trucks (the “Receivables”),
all monies due thereunder after the Cutoff Date, security interests in the vehicles financed
thereby, certain bank accounts and the proceeds thereof, proceeds from claims on certain insurance
policies and certain other rights under the Trust Agreement and the Sale and Servicing Agreement,
and all right, title and interest of the Depositor in and to the Purchase Agreement dated as of
November 21, 2007 between Triad Financial Corporation and the Depositor and all proceeds of the
foregoing.



     The holder of this Certificate acknowledges and agrees that its rights to receive
distributions in respect of this Certificate are subordinated to the rights of the Noteholders, the
Swap Counterparty and the Security Insurer as described in the Sale and Servicing Agreement, the
Indenture and the Trust Agreement, as applicable.



     Distributions on this Certificate will be made as provided in the Trust Agreement and the Sale
and Servicing Agreement by the Indenture Trustee by wire transfer or check mailed to the
Certificateholder without the presentation or surrender of this Certificate or the making of any
notation hereon. Except as otherwise provided in the Trust Agreement or the Sale and Servicing
Agreement and notwithstanding the above, the final distribution on this Certificate will be made
after due notice by the Owner Trustee of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency maintained for the purpose
by the Owner Trustee.



     Reference is hereby made to the further provisions of this Certificate set forth on the
reverse hereof, which further provisions will for all purposes have the same effect as if set forth
at this place.



     Unless the certificate of authentication hereon has been executed by an authorized officer of
the Owner Trustee, by manual or facsimile signature, this Certificate will not entitle the holder
hereof to any benefit under the Trust Agreement or the Sale and Servicing Agreement or be valid for
any purpose.



     THIS CERTIFICATE WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER WILL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.



A-3









 





     IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and not in its individual
capacity, has caused this Certificate to be duly executed.



	 	 	 	 	 	 	 
	 	 	TRIAD AUTOMOBILE RECEIVABLES TRUST 2007-B  
	 
	 	 	 	 	 	 
	 

	 	By:
	 	WILMINGTON TRUST COMPANY,	 	 
	 

	 	 	 	     not in its individual capacity but	 	 
	 

	 	 	 	     solely as Owner Trustee of the Trust	 	 
	 
	 	 	 	 	 	 
	Dated: November 21, 2007
	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	     Authorized Signatory	 	 






OWNER TRUSTEE’S CERTIFICATE OF AUTHENTICATION




This is the Certificate referred to in the within-mentioned Trust Agreement.




	 	 	 	 	 	 	 	 	 	 	 
	WILMINGTON TRUST COMPANY,	 	OR	 	WILMINGTON TRUST COMPANY,	 	 
	not in its individual capacity but solely	 	 	 	not in its individual capacity but solely	 	 
	as Owner Trustee of the Trust	 	 	 	as Owner Trustee of the Trust	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	     Authenticating Agent
	 	 	 	 	 	     Authorized Signatory	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	     Authorized Signatory	 	 	 	 	 	 	 	 






A-4









 





(Reverse of Certificate)




     This Certificate does not represent an obligation of, or an interest in, the Depositor, the
Administrator, the Servicer, the Owner Trustee or any Affiliates of any of them and no recourse may
be had against such parties or their assets, except as may be expressly set forth or contemplated
herein or in the Basic Documents. In addition, this Certificate is not guaranteed by any
governmental agency or instrumentality and is limited in right of payment to certain collections
with respect to the Receivables, all as more specifically set forth herein and in the Sale and
Servicing Agreement. A copy of each of the Sale and Servicing Agreement and the Trust Agreement
may be examined during normal business hours at the principal office of the Depositor, and at such
other places, if any, designated by the Administrator, by any Certificateholder upon written
request.



     The Trust Agreement permits, with certain exceptions therein provided, the amendment thereof
and the modification of the rights and obligations of the Depositor under the Trust Agreement at
any time by the Depositor, the Administrator and the Owner Trustee with the consent of the Security
Insurer, the Majority Noteholders and the Majority Certificateholders. Any such consent by the
Holder of this Certificate will be conclusive and binding on such Holder and on all future Holders
of this Certificate and of any Certificate issued upon the transfer hereof or in exchange hereof or
in lieu hereof whether or not notation of such consent is made upon this Certificate. The Trust
Agreement also permits the amendment thereof, in certain limited circumstances, without the consent
of any Certificateholder.



     As provided in the Trust Agreement and subject to certain limitations therein set forth, the
transfer of this Certificate is registerable in the Certificate Register upon surrender of this
Certificate for registration of transfer at the offices or agencies of the Certificate Registrar
maintained by the Owner Trustee accompanied by a written instrument of transfer in form
satisfactory to the Owner Trustee and the Certificate Registrar duly executed by the holder hereof
or such holder’s attorney duly authorized in writing, and thereupon a new Certificate evidencing
the same aggregate interest in the Trust will be issued to the designated transferee. The initial
Certificate Registrar appointed under the Trust Agreement is Wilmington Trust Company. No service
charge will be made for any such registration of transfer or exchange, but the Owner Trustee or the
Certificate Registrar may require payment of a sum sufficient to cover any expense, tax or
governmental charge payable in connection therewith. The Owner Trustee may decline to register
this Certificate if (1) the registration of this Certificate in the name of the purchaser or other
transferee, in the reasonable belief of the Owner Trustee, will cause the Trust to be treated as a
publicly traded partnership taxable as a corporation for federal income tax purposes, or (2) the
purchaser or the transferee seeking registration of this Certificate is not a United States Person
(within the meaning of Section 7701(a)(30) of the Code) or fails to deliver to the Owner Trustee
satisfactory evidence of its status as such a United States Person.



     The Owner Trustee, the Security Insurer and any agent of the Owner Trustee or the Security
Insurer may treat the person in whose name this Certificate is registered as the owner hereof for
all purposes, and none of the Owner Trustee, the Security Insurer nor any such agent will be
affected by any notice to the contrary.



A-5









 





     The obligations and responsibilities created by the Trust Agreement and the Trust created
thereby will terminate upon: the later of (i) the maturity or other liquidation of the last
Receivable (including the purchase by the Servicer at its option of the corpus of the Trust as
described in Section 10.1 of the Sale and Servicing Agreement) and the subsequent distribution of
amounts in respect of such Receivables as provided in the Basic Documents, or (ii) the payment to
the Certificateholders of all amounts required to be paid pursuant to the Trust Agreement and the
payment to the Security Insurer of all amounts payable or reimbursable to it pursuant to the Sale
and Servicing Agreement. The Servicer may at its option purchase the corpus of the Trust at a
price specified in the Sale and Servicing Agreement, and such purchase of the Receivables and other
property of the Trust will effect early retirement of this Certificate; however, such right of
purchase is exercisable, subject to certain restrictions in the Sale and Servicing Agreement, only
as of the last day of any Collection Period as of which the Pool Balance is 10% or less of the
Original Pool Balance.



     The recitals contained herein will be taken as the statements of the Trust and the Owner
Trustee assumes no responsibility for the correctness thereof. The Owner Trustee makes no
representations as to the validity or sufficiency of this Certificate or of any Receivable or
related document.


Unless the certificate of authentication hereon will have been executed by an authorized officer of
the Owner Trustee, by manual or facsimile signature, this Certificate will not entitle the Holder
hereof to any benefit under the Trust Agreement or the Sale and Servicing Agreement or be valid for
any purpose.




A-6









 








ASSIGNMENT




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




PLEASE INSERT SOCIAL SECURITY

OR OTHER IDENTIFYING NUMBER

OF ASSIGNEE




	 	 	 
	 
	(Please print or type name and address, including postal zip code, of assignee)
	 
	 	 
	 
	the within Certificate, and all rights thereunder, hereby irrevocably constituting and appointing
	 
	 	 
	
                                 	 Attorney to transfer said Certificate on the books of the	 Certificate Registrar, 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 Certificate 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 Certificate Registrar, which
requirements include membership or participation in STAMP or such other “signature guarantee
program” as may be determined by the Certificate Registrar in addition to, or in substitution
for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.





A-7









 





EXHIBIT B




CERTIFICATE OF TRUST

OF

TRIAD AUTOMOBILE RECEIVABLES TRUST 2007-B




     THIS Certificate of Trust of Triad Automobile Receivables Trust 2007-B (the “Trust”) is being
duly executed and filed by the undersigned, as trustee, to form a statutory trust under the
Delaware Statutory Trust Act (12 Del. C. § 3801 et seq.) (the “Act”).



     1. Name. The name of the statutory trust formed hereby is “Triad Automobile
Receivables Trust 2007-B.”



     2. Delaware Trustee. The name and business address of the trustee of the Trust in the
State of Delaware are Wilmington Trust Company, 1100 North Market Street, Wilmington, Delaware
19890-0001, Attention: Corporate Trust Administration.



     3. Effective Date. This Certificate of Trust shall be effective upon filing.



     IN WITNESS WHEREOF, the undersigned has duly executed this Certificate of Trust in accordance
with Section 3811(a)(1) of the Act.



	 	 	 	 	 	 	 
	 	 	WILMINGTON TRUST COMPANY	 	 
	 	 	as trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 






 









 





EXHIBIT C




[FORM OF “QUALIFIED INSTITUTIONAL BUYER”

TRANSFEREE’S CERTIFICATE]




[Date]




Triad Automobile Receivables Trust 2007-B

c/o Wilmington Trust Company, as Owner Trustee

1100 North Market Street

Wilmington, DE 19890-0001

Attention: Corporate Trust Administration




Wilmington Trust Company

1100 North Market Street

Wilmington, Delaware 19890

Attention: Chief Financial Officer



     Re:           Triad Automobile Receivables Trust 2007-B, Trust Certificate No.                    




Dear Sirs:




     In connection with the proposed purchase by the buyer listed below (the “Buyer”) of
the above-referenced Trust Certificate (the “Certificate”) issued pursuant to the Trust
Agreement, dated as of November 21, 2007 (the “Trust Agreement”) among Triad Financial
Special Purpose LLC, as depositor (the “Depositor”), Triad Financial Corporation, as
administrator (the “Administrator”) and Wilmington Trust Company, as trustee and not in its
individual capacity (the “Owner Trustee”), relating to the Triad Automobile Receivables
Trust 2007–B Certificate, the Buyer advises you that the Buyer is a “qualified institutional buyer”
as that term is defined in Rule 144A under the Securities Act of 1933, as amended (the “1933
Act”), and is acquiring beneficial ownership of the Certificate for its own account or for the
account of another “qualified institutional buyer.” In addition to the foregoing, you may rely on
the information provided in Annex 1 or 2, as applicable, attached hereto and incorporated herein.



     The Buyer understands that the Certificate has not been registered under the 1933 Act or the
securities laws of any state. The Buyer acknowledges that it has independently conducted such
investigation and evaluation of the merits and the risks involved in an investment in the
Certificate and has received such information (whether from the Depositor, the transferor from
which it proposes to purchase the Certificate, or from any other source) as the Buyer has deemed
necessary and advisable in order to make its investment decision. The Buyer has had any questions
arising from such investigation and evaluation answered by the Issuer to the satisfaction of the
Buyer. The Buyer is a sophisticated institutional investor, having such knowledge and experience
in financial and business matters generally, and with respect to asset-backed notes and investments
in “non-prime” and “sub-prime” automobile loans specifically, that it is capable of independently
evaluating the merits and risks of investment in the Certificate. In the normal course of its
business, the Buyer invests in or purchases certificates similar to the Certificate. The Buyer is
aware that it may be required to bear the economic risk



 









 







of an investment in the Certificate for an indefinite period of time, and it is able to bear
such risk for an indefinite period.



	 	 	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	[BUYER]	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 
	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Taxpayer
	 	ID:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Name in which Note is to be Registered:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 	 	Payment Instructions	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 





C-2









 





ANNEX 1 TO EXHIBIT C




QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A




[For Buyers Other Than Registered Investment Companies]




     The undersigned hereby certifies as follows to the parties listed in the “Qualified
Institutional Buyer” Transferee’s Certificate to which this certification relates with respect to
the Certificate described therein:



     1. As indicated below, the undersigned is the President, Chief Financial Officer, Senior Vice
President or other executive officer of the Buyer.



     2. In connection with purchases by the Buyer, the Buyer is a “qualified institutional buyer”
as that term is defined in Rule 144A under the Securities Act of 1933 (“Rule 144A”) because
(i) the Buyer owned and/or invested on a discretionary basis $_________1 in
securities (except for the excluded securities referred to below) as of the end of the Buyer’s most
recent fiscal year (such amount being calculated in accordance with Rule 144A) and (ii) the Buyer
satisfies the criteria in the category marked below.



	 	 	 
	___
	 	Corporation, etc. The Buyer is a corporation (other
than a bank, savings and loan association or similar
institution), Massachusetts or similar business trust,
partnership, or charitable organization described in
Section 501(c)(3) of the Internal Revenue Code of 1986,
as amended.
	 
	 	 
	___
	 	Bank. The Buyer (a) is a national bank or banking
institution organized under the laws of any state,
territory or the District of Columbia, the business of
which is substantially confined to banking and is
supervised by the state or territorial banking
commission or similar official or is a foreign bank or
equivalent institution, and (b) has an audited net worth
of at least $25,000,000 as demonstrated in its latest
annual financial statements, a copy of which is attached
hereto.
	 
	 	 
	___
	 	Savings and Loan. The Buyer (a) is a savings and loan
association, building and loan association, cooperative
bank, homestead association or similar institution,
which is supervised and examined by a state or federal
authority having supervision over any such institutions
or is a foreign savings and loan association or
equivalent institution and (b) has an audited net worth
of at least $25,000,000 as demonstrated in its latest
annual financial statements, a copy of which is attached
hereto.








 




			
	1	 	Buyer must own and/or invest on a discretionary basis
at least $100,000,000 in securities unless Buyer is a dealer, and, in that
case, Buyer must own and/or invest on a discretionary basis at least
$10,000,000 in securities.





C-3









 





	 	 	 
	___

	 	Broker-dealer. The Buyer is a dealer registered
pursuant to Section 15 of the Securities Exchange Act of
1934.
	 
	 	 
	___

	 	Insurance Company. The Buyer is an insurance company
whose primary and predominant business activity is the
writing of insurance or the reinsuring of risks
underwritten by insurance companies and which is subject
to supervision by the insurance commissioner or a
similar official or agency of a state, territory or the
District of Columbia.
	 
	 	 
	___

	 	State or Local Plan. The Buyer is a plan established
and maintained by a state, its political subdivisions,
or any agency or instrumentality of the state or its
political subdivisions, for the benefit of its
employees.
	 
	 	 
	___

	 	ERISA Plan. The Buyer is an “employee benefit plan”
within the meaning of Title I of the Employee Retirement
Income Security Act of 1974.
	 
	 	 
	___

	 	Investment Advisor. The Buyer is an investment advisor
registered under the Investment Advisers Act of 1940.
	 
	 	 
	___

	 	Small Business Investment Company. Buyer is a small
business investment company licensed by the U.S. Small
Business Administration under Section 301(c) or (d) of
the Small Business Investment Act of 1958.
	 
	 	 
	___

	 	Business Development Company. Buyer is a business
development company as defined in Section 202(a)(22) of
the Investment Advisors Act of 1940.
	 
	 	 
	___

	 	Trust Fund. The Buyer is a trust fund whose trustee is
a bank or trust company and whose participants are
exclusively State or Local Plans or ERISA Plans as
defined above, and no participant of the Buyer is an
individual retirement account or an H.R. 10 (Keogh)
plan.






     3. The Buyer is not, and is not acting on behalf of or investing the assets of, (a) an
“employee benefit plan” (as defined in Section 3(3) of the Employee Retirement Income Security Act
of 1974, as amended (“ERISA”)) that is subject to the provisions of Title I of ERISA,
(b) “a plan” (as defined in Section 4975(e)(1) of the Internal Revenue Code of 1986, as amended
(the “Code”) that is subject to Section 4975 of the Code or (c) any entity whose underlying
assets include assets of a plan described in (a) or (b) above by reason of such plan’s investment
in the entity (including, without limitation, an insurance company general account).



     4. The term “securities” as used herein does not include (a) securities of issuers that are
affiliated with the Buyer, (b) securities that are part of an unsold allotment to or subscription
by the Buyer, if the Buyer is a dealer, (c) bank deposit notes and certificates of deposit,
(d) loan participations, (e) repurchase agreements, (f) securities owned but subject to a
repurchase agreement and (g) currency, interest rate and commodity swaps.



     5. For purposes of determining the aggregate amount of securities owned and/or invested on a
discretionary basis by the Buyer, the Buyer used the cost of such securities to the



C-4









 







Buyer and did not include any of the securities referred to in the preceding paragraph, except
(a) where the Buyer reports its securities holdings in its financial statements on the basis of
their market value, and (b) no current information with respect to the cost of those securities has
been published. If clause (b) in the preceding sentence applies, the securities may be valued at
market. Further, in determining such aggregate amount, the Buyer may have included securities
owned by subsidiaries of the Buyer, but only if such subsidiaries are consolidated with the Buyer
in its financial statements prepared in accordance with generally accepted accounting principles
and if the investments of such subsidiaries are managed under the Buyer’s direction. However, such
securities were not included if the Buyer is a majority-owned, consolidated subsidiary of another
enterprise and the Buyer is not itself a reporting company under the Securities Exchange Act of
1934.



     6. The Buyer acknowledges that it is familiar with Rule 144A and understands that the seller
to it and other parties related to the securities are relying and will continue to rely on the
statements made herein because one or more sales to the Buyer may be in reliance on Rule 144A.



     7. Until the date of purchase of the Certificate, the Buyer will notify each of the parties to
which this certification is made of any changes in the information and conclusions herein. Until
such notice is given, the Buyer’s purchase of Rule 144A Securities will constitute a reaffirmation
of this certification as of the date of such purchase. In addition, if the Buyer is a Bank or
Savings and Loan as provided above, the Buyer agrees that it will furnish to such parties updated
annual financial statements promptly after they become available.




	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Print Name of Buyer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 	 	 





C-5









 





ANNEX 2 TO EXHIBIT C




QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A




[For Buyers that are Registered Investment Companies]




     The undersigned hereby certifies as follows to the parties listed in the “Qualified
Institutional Buyer” Transferee’s Certificate to which this certification relates with respect to
the Rule 144A Securities described therein:



     1. As indicated below, the undersigned is the President, Chief Financial Officer or Senior
Vice President of the Buyer or, if the Buyer is a “qualified institutional buyer” as that term is
defined in Rule 144A under the Securities Act of 1933, as amended (“Rule 144A”), because
the Buyer is part of a Family of Investment Companies (as defined below), is such an officer of the
Buyer.



     2. In connection with purchases by the Buyer, the Buyer is a “qualified institutional buyer”
as defined in Rule 144A because (a) the Buyer is an investment company registered under the
Investment Company Act of 1940, as amended, and (b) as marked below, the Buyer alone, or the
Buyer’s Family of Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer’s most recent fiscal year. For
purposes of determining the amount of securities owned by the Buyer or the Buyer’s Family of
Investment Companies, the cost of such securities was used, except (x) where the Buyer or the
Buyer’s Family of Investment Companies reports its securities holdings in its financial statements
on the basis of their market value, and (y) no current information with respect to the cost of
those securities has been published. If clause (y) in the preceding sentence applies, the
securities may be valued at market.




	 	 	 
	___

	 	The Buyer owned
$_____ in securities (other
than the excluded securities referred to below) as of
the end of the Buyer’s most recent fiscal year (such
amount being calculated in accordance with Rule 144A).
	 
	 	 
	___

	 	The Buyer is part of a Family of Investment Companies
which owned in the aggregate $_____ in securities
(other than the excluded securities referred to below)
as of the end of the Buyer’s most recent fiscal year
(such amount being calculated in accordance with
Rule 144A).






     3. The Buyer is not, and is not acting on behalf of or investing the assets of, (a) an
“employee benefit plan” (as defined in Section 3(3) of the Employee Retirement Income Security Act
of 1974, as amended (“ERISA”)) that is subject to the provisions of Title I of ERISA, (b) a
“plan” (as defined in Section 4975(e)(1) of the Internal Revenue Code of 1986, as amended (the
“Code”) that is subject to Section 4975 of the Code or (c) any entity whose underlying
assets include assets of a plan described in (a) or (b) above by reason of such plan’s investment
in the entity (including, without limitation, an insurance company general account).



     4. The term “Family of Investment Companies” as used herein means two or more registered
investment companies (or series thereof) that have the same investment adviser or



C-6









 







investment advisers that are affiliated (by virtue of being majority owned subsidiaries of the
same parent or because one investment adviser is a majority owned subsidiary of the other).



     5. The term “securities” as used herein does not include (a) securities of issuers that are
affiliated with the Buyer or are part of the Buyer’s Family of Investment Companies, (b) bank
deposit notes and certificates of deposit, (c) loan participations, (d) repurchase agreements,
(e) securities owned but subject to a repurchase agreement and (f) currency, interest rate and
commodity swaps.



     6. The Buyer is familiar with Rule 144A and understands that the parties listed in the
“Qualified Institutional Buyer” Transferee’s Certificate to which this certification relates are
relying and will continue to rely on the statements made herein because one or more sales to the
Buyer will be in reliance on Rule 144A. In addition, the Buyer will only purchase for the Buyer’s
own account.



     7. Until the date of purchase of the Certificate, the undersigned will notify each of the
parties to which this certification is made of any changes in the information and conclusions
herein. Until such notice is given, the Buyer’s purchase of Rule 144A Securities will constitute a
reaffirmation of this certification by the undersigned as of the date of such purchase.




	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Print Name of Buyer or Adviser	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	IF AN ADVISER:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Print Name of Buyer	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 	 	 






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