Insurance Agreement dated as of August 4, 2006



 Exhibit 10.4 
 EXECUTION COPY 
  

 INSURANCE AGREEMENT 
 among 
 MBIA INSURANCE CORPORATION, 
 as Note Insurer, 
 CAPITAL ONE AUTO FINANCE, INC., 
 in its
individual capacity and as Servicer, 
 CAPITAL ONE AUTO RECEIVABLES, LLC, 
 as Seller, 
 CAPITAL ONE AUTO FINANCE TRUST
2006-B, 
 as Issuer 
 and

 JPMORGAN CHASE BANK, N.A., 
 as Indenture Trustee 
 $2,500,000,000 
 Capital One Auto Finance Trust 2006-B 
 Asset Backed Notes, Series 2006-B 
 Class A-1 Notes, Class A-2 Notes, 
 Class A-3-A Notes, Class A-3-B Notes, and Class A-4 Notes 
 Dated as of August 4, 2006 
  








 TABLE OF CONTENTS 
  

					
	 	  	Page
	ARTICLE I	  	
	DEFINITIONS	  		  	1
	ARTICLE II	  	
	REPRESENTATIONS, WARRANTIES AND COVENANTS	  	
			
	Section 2.01.	  	Representations and Warranties of the COAF Companies	  	9
			
	Section 2.02.	  	Affirmative Covenants of the COAF Companies	  	13
			
	Section 2.03.	  	Negative Covenants of the COAF Companies	  	17
			
	Section 2.04.	  	Representations and Covenants of Indenture Trustee	  	17
			
	Section 2.05.	  	Representations, Warranties and Covenants of the Issuer	  	18
			
	Section 2.06.	  	Representations and Warranties of Note Insurer	  	18
			
	Section 2.07.	  	Covenant of Note Insurer; Confidentiality	  	21
		
	ARTICLE III	  	
	THE POLICIES; REIMBURSEMENT	  	
			
	Section 3.01.	  	Issuance of the Policies	  	22
			
	Section 3.02.	  	Payment of Fees and Premium	  	24
			
	Section 3.03.	  	Reimbursement and Additional Payment Obligation	  	25
			
	Section 3.04.	  	Indemnification; Limitation of Liability	  	27
			
	Section 3.05.	  	Payment Procedure	  	29
			
	Section 3.06.	  	Subrogation	  	30
			
	Section 3.07.	  	Reimbursement	  	30
		
	ARTICLE IV	  	
	FURTHER AGREEMENTS	  	
			
	Section 4.01.	  	Effective Date; Term of the Insurance Agreement	  	30
			
	Section 4.02.	  	Further Assurances and Corrective Instruments	  	30
			
	Section 4.03.	  	Obligations Absolute	  	31
			
	Section 4.04.	  	Assignments; Reinsurance; Third-party Rights	  	32
			
	Section 4.05.	  	Liability of the Note Insurer	  	33
			
	Section 4.06.	  	Nonpetition Covenant	  	33
			
	Section 4.07.	  	Parties To Join in Enforcement Action	  	33
			
	Section 4.08.	  	Regulation AB Reports	  	34









					
	ARTICLE V	  	
	DEFAULTS; REMEDIES	  	
			
	Section 5.01.	  	Defaults	  	36
			
	Section 5.02.	  	Remedies; No Remedy Exclusive	  	37
			
	Section 5.03.	  	Waivers	  	37
		
	ARTICLE VI	  	
	MISCELLANEOUS	  	
			
	Section 6.01.	  	Amendments, Etc	  	38
			
	Section 6.02.	  	Notices	  	38
			
	Section 6.03.	  	Severability	  	40
			
	Section 6.04.	  	Governing Law	  	40
			
	Section 6.05.	  	Consent to Jurisdiction	  	40
			
	Section 6.06.	  	Consent of the Note Insurer	  	41
			
	Section 6.07.	  	Counterparts	  	41
			
	Section 6.08.	  	Headings	  	41
			
	Section 6.09.	  	Trial by Jury Waived	  	41
			
	Section 6.10.	  	Limited Liability	  	41
			
	Section 6.11.	  	Entire Agreement	  	41
			
	Section 6.12.	  	Limitation of Liability	  	42

  

 ii 








 INSURANCE AGREEMENT 
 THIS INSURANCE AGREEMENT (this “Insurance Agreement”) is dated as of August 4, 2006 by and among MBIA INSURANCE CORPORATION (the “Note Insurer”), CAPITAL ONE AUTO FINANCE,
INC., in its individual capacity as seller under the Purchase Agreement (“COAF”) and as the Servicer (the “Servicer”), CAPITAL ONE AUTO RECEIVABLES, LLC, as Seller (the “Seller”), CAPITAL ONE AUTO FINANCE
TRUST 2006-B, as Issuer (the “Issuer”), and JPMORGAN CHASE BANK, N.A. in its capacity as indenture trustee (the “Indenture Trustee”). 
 WHEREAS, the Indenture Trustee is authenticating $2,500,000,000 principal amount of the Capital One Auto Finance Trust 2006-B, Asset Backed Notes, Series 2006-B, Class A-1 Notes, Class A-2 Notes,
Class A-3-A Notes, Class A-3-B Notes, and Class A-4 Notes, pursuant to an Indenture as more specifically defined below. The Notes will be secured by the Trust Estate as defined in the Indenture; and 
 WHEREAS, the Issuer, Seller, COAF and Servicer have requested that the Note Insurer issue its Note Guaranty Insurance Policy (the “Note Insurance
Policy”) to guarantee payment of Insured Payments (as defined in Note Insurance Policy) with respect to the Notes, upon such terms and conditions as were mutually agreed upon by the parties and subject to the terms and conditions of the Note
Insurance Policy and has asked the Note Insurer to issue an Interest Rate Swap Insurance Policy (the “Swap Policy”, and together with the Note Insurance Policy, the “Policies”) and the Note Insurer has agreed to insure certain
amounts which may be due from the Owner Trustee on behalf of the Issuer to the Swap Provider under the Swap Agreement; and 
 WHEREAS, the
parties hereto desire to specify the conditions precedent to the issuance of the Policies by the Note Insurer, the indemnity and reimbursement to be provided by COAF and the Servicer in respect of amounts paid by the Note Insurer under the Policies
and to provide for certain other matters; and 
 WHEREAS, the Note Insurer shall be paid an insurance premium pursuant to the Indenture, and
the details of such premium are set forth herein; and 
 WHEREAS, each COAF Company (as defined below) has undertaken certain obligations in
consideration for the Note Insurer’s issuance of the Policies; 
 NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein contained, the parties hereto agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 The terms defined in this Article I shall have the meanings
provided herein for all purposes of this Insurance Agreement, unless the context clearly requires otherwise, in both singular and plural form, as appropriate. Unless the context clearly requires otherwise, all capitalized terms used herein and not
otherwise defined in this Article I shall have the meanings 







 assigned to them in the Transaction Documents (as defined below). All words used herein shall be construed to be of such
gender or number as the circumstances require. This “Insurance Agreement” shall mean this Insurance Agreement as a whole and as the same may, from time to time hereafter, be amended, supplemented or modified. The words “herein,”
“hereby,” “hereof,” “hereto,” “hereinabove” and “hereinbelow,” and words of similar import, refer to this Insurance Agreement as a whole and not to any particular paragraph, clause or other
subdivision hereof, unless otherwise specifically noted. 
 “Business Day” means any day other than a Saturday or a Sunday
or a day on which banking institutions in the states of Delaware, California, Texas, Virginia or New York, or in the state in which the Corporate Trust Office of the Indenture Trustee is located, are authorized or obligated by law, executive
order or government decree to be closed. 
 “Capital One Information” means the information included in the Prospectus, but
excluding the Note Insurer Information and the Underwriter Information. 
 “COAF” means Capital One Auto Finance, Inc., a
Texas corporation, and its successors and assigns. 
 “COAF Company” means COAF, in its individual capacity as seller under
the Purchase Agreement and as Servicer, and the Seller. 
 “Commission” means the Securities and Exchange Commission.

 “Cumulative Net Charge-Off Ratio” means, as of any Determination Date, the ratio of (a) the aggregate Principal
Balance of Receivables that became Defaulted Receivables plus all the Cram Down Losses which occurred during the period from the Initial Cut-Off Date through the end of the related Collection Period reduced by the amount of Liquidation Proceeds with
respect to Defaulted Receivables received during such period which are applied to principal of the Defaulted Receivables to (b) the sum of (i) the initial aggregate Principal Balance of the Initial Receivables plus (ii) the initial
aggregate Principal Balance of the Subsequent Receivables as of their respective Subsequent Cut-Off Dates. 
 “Date of
Issuance” means the date on which the Policies are issued as specified therein. 
 “Default” means any event which
results, or which with the giving of notice or the lapse of time or both would result, in an Event of Default. 
 “Delinquency
Ratio” means, as of a Determination Date, the ratio of (a) the aggregate Principal Balance of Receivables that were Delinquent Receivables at the end of the related Collection Period to (b) the aggregate Principal Balance of all
Receivables as of the first day of such related Collection Period. 
 “Delinquent Receivable” means any Receivable
(excluding (i) any Receivable that has become a Defaulted Receivable and (ii) any Receivable as to which the Servicer has repossessed the related Financed Vehicle) as to which any portion of a scheduled payment remains unpaid for more than
60 days from the date on which it is due and payable. 
  

 2 








 “Event of Default” means any event of default specified in Section 5.01 of this
Insurance Agreement. 
 “Exchange Act Reports” means all Distribution Reports on Form 10-D, Current Reports on Form 8-K and
Annual Reports on Form 10-K that are required to be filed by the Seller or the Issuer with respect to the Notes pursuant to the Exchange Act. 
 “Fee Letter” means the fee letter dated as of August 4, 2006, from the Note Insurer to the Owner Trustee, the Servicer, and the Indenture Trustee. 
 “Financial Statements” means, with respect to Capital One Financial Corporation, the balance sheets and the statements of income,
retained earnings and cash flows for the 12-month period then ended and the notes thereto which have been provided to the Note Insurer. 
 “Fiscal Agent” means the Fiscal Agent, if any, designated pursuant to the terms the Note Policy or the Swap Policy, as applicable. 
 “Fitch” means Fitch, Inc., and any successor thereto, and, if such corporation shall for any reason no longer perform the functions of a securities rating agency, “Fitch” shall be deemed to
refer to any other nationally recognized rating agency designated by the Note Insurer. 
 “Indemnification Agreement” means
that certain Indemnification Agreement dated as of July 27, 2006 by and among the Note Insurer and Barclays Capital Inc. and Deutsche Bank Securities Inc., as Representatives of the several Underwriters (as defined therein). 
 “Indenture” means that certain Indenture dated as of August 4, 2006, between the Issuer and the Indenture Trustee. 
 “Insurance Agreement Event of Default” means any of the following: 
 (a) any failure (i) to observe or perform any covenant or obligation of the Owner Trustee, COAF, the Seller, the Issuer or the
Servicer set forth herein, or in the Indenture, the Sale and Servicing Agreement or the Purchase Agreement which has not been cured within sixty (60) days (or such longer period not in excess of ninety (90) as may be reasonably necessary
to remedy such failure; provided that (i) that failure is capable of remedy within ninety (90) days or less and (ii) the Note Insurer consents in its sole discretion to that longer period) from the date of receipt by the Owner
Trustee, COAF, the Seller, the Issuer or the Servicer, as the case may be, of written notice from the Indenture Trustee or the Note Insurer of such breach or default and such breach or default could reasonably have a material adverse effect on the
interests of the Note Insurer or the Noteholders (as determined in the Note Insurer’s sole discretion), or (ii) of any Person to deposit into the Collection Account or the Reserve Account all amounts required to be deposited therein by the
required deposit date and such failure could reasonably have a material adverse effect on the interests of the Note Insurer or the Noteholders (as determined in the Note Insurer’s sole discretion) and such failure has continued for a period of
at least five (5) Business Days (A) after notice is received by such Person from the Indenture Trustee or the Note Insurer or (B) after discovery of such failure by a responsible officer of such Person; provided, however, that no
Insurance 
  

 3 








 Agreement Event of Default will result from the breach by the Servicer of any covenant for which the
repurchase of the affected Receivables is specified as the sole remedy pursuant to Section 3.6 of the Sale and Servicing Agreement and such repurchase takes place within the time frame required by Section 2.3 and Section 3.6 of the
Sale and Servicing Agreement; 
 (b) any representation, warranty or statement of the Indenture Trustee, the Servicer, the
Owner Trustee, COAF, the Issuer or the Seller (other than representations and warranties under Section 3.2 of the Purchase Agreement and Section 2.2, 3.2, 3.3, 3.4 or 3.5 of the Sale and Servicing Agreement) contained herein or in the
Indenture or in the Sale and Servicing Agreement, the Purchase Agreement or in any report, document or certificate delivered pursuant to the foregoing agreements shall prove to be incorrect in any material respect as of the time when the same shall
have been made and, within sixty (60) days (or such longer period not in excess of ninety (90) as may be reasonably necessary to remedy such failure; provided that (i) that failure is capable of remedy within ninety (90) days or
less and (ii) the Note Insurer consents in its sole discretion to that longer period) after written notice thereof shall have been given to the Indenture Trustee and the defaulting party (if not the Indenture Trustee) by the Servicer, the Note
Insurer, the Indenture Trustee or by Noteholders constituting Noteholder Approval, the circumstances or condition in respect of which such representation, warranty or statement was incorrect shall not have been eliminated or otherwise cured or
waived by the Note Insurer and could reasonably have a material adverse affect on the interests of the Note Insurer or the Noteholders (as determined in the Note Insurer’s sole discretion); 
 (c) the cessation of a valid perfected first priority security interest in the Receivables or the Trust Accounts in favor of the Indenture
Trustee which is not cured within seven (7) Business Days of receipt of notice thereof; 
 (d) [reserved]; 
 (e) as of the Determination Date with respect to each Collection Period, the three month average of the Delinquency Ratios for such
Collection Period and the two Collection Periods immediately preceding such Collection Period is greater than the level specified for such month in such table: 
  

				
	 Collection Period
	  	Delinquency Ratio	 
	August 2006-September 2006	  	6.50	%
	October 2006-February 2007	  	8.00	%
	March 2007-April 2007	  	6.50	%
	May 2007-September 2007	  	7.50	%
	October 2007-February 2008	  	9.00	%
	March 2008-April 2008	  	7.50	%
	May 2008-September 2008	  	8.50	%
	October 2008-February 2009	  	10.00	%
	March 2009-April 2009	  	8.50	%
	May 2009-August 2009	  	9.50	%

  

 4 









				
	 Collection Period
	  	Delinquency Ratio	 
	September 2009	  	10.50	%
	October 2009-February 2010	  	12.00	%
	March 2010-April 2010	  	10.50	%
	May 2010-September 2010	  	11.50	%
	October 2010-February 2011	  	13.00	%
	March 2011-April 2011	  	11.50	%
	May 2011-July 2011	  	12.50	%

 provided that an Insurance Agreement Event of Default occurring under this clause (e) shall
be deemed to have been cured if, as of the Determination Date with respect to each of any three (3) consecutive Collection Periods following the occurrence of an Insurance Agreement Event of Default pursuant to this clause (e), the average
of the Delinquency Ratios for such Collection Periods is less than the percentage above for the applicable Collection Period; 
 (f) a draw is made on the Note Insurance Policy; 
 (g) as of the Determination Date in any month prior to and
including the applicable month set forth in the table below, the Cumulative Net Charge-Off Ratio exceeds the level specified for such month in such table: 
  

				
	 Month
	  	 Cumulative Net
 Charge-Off Ratio
	 
	November 2006-January 2007	  	n/a	 
	February 2007-April 2007	  	7.00	%
	May 2007-July 2007	  	9.30	%
	August 2007-October 2007	  	12.00	%
	November 2007-January 2008	  	14.30	%
	February 2008-April 2008	  	16.00	%
	May 2008-July 2008	  	17.30	%
	August 2008-October 2008	  	19.00	%
	November 2008-January 2009	  	20.00	%
	February 2009 and thereafter	  	21.00	%

 (h) except as permitted by the Sale and Servicing Agreement, any assignment by the
Servicer of its rights and obligations under the Sale and Servicing Agreement or any attempt to make such an assignment; 
 (i) failure to make any payment with respect to the Notes pursuant to the Indenture or Section 4.4(a) of the Sale and Servicing Agreement, which continues unpaid for a period of five (5) Business Days; 
 (j) [reserved]; 
  

 5 








 (k) the occurrence of a Servicer Termination Event or Event of Default under the
Indenture; or 
 (l) any Event of Default or Termination Event (as defined in the Swap Agreement) occurs under the Swap
Agreement. 
 “Investment Company Act” means the Investment Company Act of 1940, including, unless the context otherwise
requires, the rules and regulations thereunder, as amended. 
 “Issuer” means Capital One Auto Finance Trust 2006-B.

 “Late Payment Rate” means the rate of interest as it is publicly announced by Citibank, N.A. at its principal office in
New York, New York as its prime rate (any change in such prime rate of interest to be effective on the date such change is announced by Citibank, N.A.) plus 2.0%. The Late Payment Rate shall be computed on the basis of a year of
365 days calculating the actual number of days elapsed. In no event shall the Late Payment Rate exceed the maximum rate permissible under any applicable law limiting interest rates. 
 “Material Adverse Change” means, in respect of any Person, a material adverse change in (a) the business, financial condition or
results of operations of such Person or (b) the ability of such Person to perform its obligations under any of the Transaction Documents. 
 “Moody’s” means Moody’s Investors Service, Inc., a Delaware corporation, and any successor thereto, and, if such corporation shall for any reason no longer perform the functions of a securities rating agency,
“Moody’s” shall be deemed to refer to any other nationally recognized rating agency designated by the Note Insurer. 
 “Note Insurer Financial Information” means the financial information of the Note Insurer incorporated by reference into the Prospectus or any Exchange Act Report. 
 “Note Insurer Information” means the information relating to the Note Insurer in the Prospectus Supplement as of the date thereof under
the heading “The Note Guaranty Insurance Policy and the Note Insurer” and the information relating to the Note Insurer incorporated by reference into the Prospectus Supplement. 
 “Notes” means the Capital One Auto Finance Trust 2006-B, Asset Backed Notes, Series 2006-B, designated as Class A-1 Notes,
Class A-2 Notes, Class A-3 Notes, and Class A-4 Notes issued in accordance with the provisions of the Indenture. 
 “Owners” means registered holders of Notes. 
 “Person” means an individual, joint stock company,
trust, unincorporated association, joint venture, corporation, limited liability company, business or owner trust, partnership or other organization or entity (whether governmental or private). 
 “Premium” means the premium payable in accordance with Section 3.02 of this Insurance Agreement. 
 “Pricing Date” means July 27, 2006. 
  

 6 








 “Prospectus” means, collectively, (a) the Preliminary Prospectus Supplement dated
July 25, 2006, as supplemented by the Supplement dated July 26, 2006, to the Prospectus dated July 25, 2006 and (b) the Final Prospectus Supplement dated July 27, 2006 to the Prospectus dated July 25, 2006, each
relating to the sale of the Notes on the Closing Date. 
 “Purchase Agreement” means that certain Purchase Agreement, dated
as of August 4, 2006, by and between COAF and Seller. 
 “Regulation AB” means Subpart 229.1100 – Asset Backed
Securities Regulation (Regulation AB) 17 C.F.R. §§229.1100–229.1123, as such may be amended from time to time, and subject to such clarification and interpretation as have been provided by the Commission in the adopting release
(Asset–Backed Securities, Securities Act Release No. 33–8518, 70 Fed. reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff of the Commission, or as may be provided by the Commission or its staff from time to time. 
 “Reserve Account Increase Condition” means the occurrence of one or both of the following events: 
 (a) as of the Determination Date with respect to any Collection Period, the average of the Delinquency Ratios for such Collection Period and the two
Collection Periods immediately preceding such Collection Period is greater than the level specified for such month in the following table: 
  

				
	 Collection Period
	  	Delinquency Ratio	 
	August 2006-September 2006	  	5.50	%
	October 2006-February 2007	  	7.00	%
	March 2007-April 2007	  	5.50	%
	May 2007-September 2007	  	6.50	%
	October 2007-February 2008	  	8.00	%
	March 2008-April 2008	  	6.50	%
	May 2008-September 2008	  	7.50	%
	October 2008-February 2009	  	9.00	%
	March 2009-April 2009	  	7.50	%
	May 2009-August 2009	  	8.50	%
	September 2009	  	9.50	%
	October 2009-February 2010	  	11.00	%
	March 2010-April 2010	  	9.50	%
	May 2010-September 2010	  	10.50	%
	October 2010-February 2011	  	12.00	%
	March 2011-April 2011	  	10.50	%
	May 2011-July 2011	  	11.50	%

 provided that a Reserve Account Increase Condition occurring under this clause (a) shall be
deemed to have been cured if, as of the Determination Date with respect to each of any three (3) consecutive Collection Periods following the 
  

 7 








 occurrence of a Reserve Account Increase Condition pursuant to this clause, the average of the
Delinquency Ratios for such Collection Periods is less than the percentage specified above for the applicable Collection Period; or 
 (b) as
of the Determination Date in any month prior to and including the applicable month set forth in the table below, the Cumulative Net Charge-Off Ratio exceeds the level specified for such month in such table: 
  

				
	 Month
	  	 Cumulative Net
 Charge-Off Ratio
	 
	November 2006-January 2007	  	4.00	%
	February 2007-April 2007	  	6.00	%
	May 2007-July 2007	  	8.30	%
	August 2007-October 2007	  	10.30	%
	November 2007-January 2008	  	12.30	%
	February 2008-April 2008	  	14.00	%
	May 2008-July 2008	  	15.30	%
	August 2008-October 2008	  	16.00	%
	November 2008-January 2009	  	17.00	%
	February 2009 and thereafter	  	18.00	%

 “Sale and Servicing Agreement” means that certain Sale and Servicing Agreement,
dated as of August 4, 2006, between the Seller, the Issuer, the Servicer and the Indenture Trustee. 
 “Securities Act”
means the Securities Act of 1933, including, unless the context otherwise requires, the rules and regulations thereunder, as amended from time to time. 
 “Securities Exchange Act” means the Securities Exchange Act of 1934, including, unless the context otherwise requires, the rules and regulations thereunder, as amended from time to time. 

“S&P” means Standard & Poor’s Ratings Services, and any successor thereto, and, if such corporation shall for any
reason no longer perform the functions of a securities rating agency, “S&P” shall be deemed to refer to any other nationally recognized rating agency designated by the Note Insurer. 
 “Swap Agreement” means the ISDA Master Agreement dated as of August 4, 2006 between the Issuer, and the Swap Provider, the Schedule
thereto, the Swap Transaction Confirmation bearing Ref. No. N497676N dated August 4, 2006, and the Swap Transaction Confirmation bearing Ref. No. N497679N dated August 4, 2006 which is the subject of the Swap Policy. 
 “Swap Policy” means the Interest Rate Swap Insurance Policy No. 483492 issued by MBIA Insurance Corporation, which guarantees
certain payments due under the Swap Agreement. 
  

 8 








 “Swap Provider” means Deutsche Bank AG, New York Branch and its permitted successors and
assigns. 
 “Target Cumulative Net Charge-Off Ratio” means, with respect to the Payment Dates occurring in February
2008, August 2008 and February 2009, the Cumulative Net Charge-Off Ratio set forth below opposite such Payment Date: 
  

			
	 Payment Date
	  	 Target Cumulative Net
 Charge-Off Ratio

	February 2008	  	4.50%
	August 2008	  	6.25%
	February 2009	  	7.50%

 “Term of the Insurance Agreement” shall be determined as provided in
Section 4.01 of this Insurance Agreement. 
 “Transaction” means the transactions contemplated by the Transaction
Documents including the transactions described in the Prospectus. 
 “Transaction Documents” means this Insurance Agreement,
the Prospectus, the Indenture, the Swap Agreement, the Purchase Agreement, the Sale and Servicing Agreement, the Limited Guaranty, the Underwriting Agreement, the Trust Agreement, and the Notes. 
 “Underwriter Information” means the information furnished by the Underwriters in writing expressly for use in the Prospectus and
included in the second paragraph (regarding concessions and discounts) and the second sentence of the ninth paragraph (regarding market making) under the caption “Underwriting” in the Prospectus Supplement. 
 “Underwriting Agreement” has the meaning assigned thereto in Appendix A to the Sale and Servicing Agreement. 
 ARTICLE II 
 REPRESENTATIONS,
WARRANTIES AND COVENANTS 
 Section 2.01. Representations and Warranties of the COAF Companies. 
 (a) Representations and Warranties of the Seller. The Seller makes the following representations and warranties as of the
date hereof and the Date of Issuance: 
 (i) Existence and Power. The Seller is a Delaware limited liability company
validly existing and in good standing under the laws of its state of organization and has, in all material respects, full power and authority to own its assets and operate its business as presently owned or operated, and to execute, deliver and
perform its obligations under the Transaction Documents to which it is a party. The Seller has obtained all necessary licenses and approvals in each jurisdiction where the failure to do so could reasonably result in a Material Adverse Change.

  

 9 








 (ii) Authorization and No Contravention. The execution, delivery and performance
by the Seller of the Transaction Documents to which it is a party have been duly authorized by all necessary action on the part of the Seller and do not contravene or constitute a default under (A) any applicable law, rule or regulation,
(B) its organizational documents or (C) any material indenture or material agreement or material instrument to which the Seller is a party or by which its properties are bound (other than violations of such laws, rules, regulations,
indentures or agreements which do not affect the legality, validity or enforceability of any of such agreements and which, individually or in the aggregate, could reasonably result in a Material Adverse Change). 
 (iii) No Consent Required. No approval or authorization by, or filing with, any Governmental Authority is required in connection
with the execution, delivery and performance by the Seller of any Transaction Document other than (A) UCC filings, (B) approvals and authorizations that have previously been obtained and filings that have previously been made or approvals,
authorizations or filings which will be made on a timely fashion and (C), authorizations or filings which, if not obtained or made, would not reasonably result in a Material Adverse Change. 
 (iv) Binding Effect. Each Transaction Document to which the Seller is a party constitutes the legal, valid and binding obligation
of the Seller enforceable against the Seller in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, receivership, conservatorship or other similar laws affecting
creditors’ rights generally and, if applicable, the rights of creditors of limited liability companies from time to time in effect or by general principles of equity. 
 (v) No Proceedings. There are no actions, suits or proceedings pending or, to the knowledge of the Seller, threatened against the
Seller before or by any Governmental Authority that (A) assert the invalidity or unenforceability of this Agreement or any of the other Transaction Documents, (B) seeking to prevent the issuance of the Notes or the consummation of any of
the transactions contemplated by this Agreement or any of the other Transaction Documents, (C) seeking any determination or ruling that could reasonably result in a Material Adverse Change, or (D) relating to the Seller that would
materially and adversely affect the federal or Applicable Tax State income, excise, franchise or similar tax attributes of the Notes. 
 (vi) Compliance With Securities Laws. The initial offer and sale of the Notes comply in all material respects with all requirements of law, including all registration requirements of applicable securities laws.
Without limitation of the foregoing, the Prospectus does not contain any untrue statement of a material fact and does not omit to state a material fact necessary to make the statements made 
  

 10 








 therein, in light of the circumstances under which they were made, not misleading; provided, however,
that no representation is made with respect to the information in the Prospectus set forth under the heading “THE NOTE GUARANTY INSURANCE POLICY AND THE NOTE INSURER,” the consolidated financial statements of the Note Insurer incorporated
by reference in the Prospectus or the Underwriter Information. Neither the offer nor the sale of the Notes has been or will be in violation of the Securities Act or any other federal or state securities laws. Neither the Issuer nor the Seller is
required to be registered as an “investment company” under the Investment Company Act. 
 (vii) Transaction
Documents. Each of the representations and warranties of the Seller contained in the Transaction Documents is true and correct in all material respects, and the Seller hereby makes each such representation and warranty to, and for the benefit
of, the Note Insurer as if the same were set forth in full herein, provided that the remedy for any breach of this paragraph shall be limited to the remedies specified in the related Transaction Document. 
 (viii) Solvency. The Seller is solvent and will not be rendered insolvent by the Transaction and, after giving effect to the
Transaction, the Seller will not be left with an unreasonably small amount of capital with which to engage in its business, nor does the Seller intend to incur, or believe that it has incurred, debts beyond its ability to pay as they mature. The
Seller does not contemplate the commencement of insolvency, bankruptcy, liquidation or consolidation proceedings or the appointment of a receiver, liquidator, conservator, trustee or similar official in respect of any COAF Company or any of their
assets. 
 (b) Representations and Warranties of Servicer. Each of the Servicer and COAF makes the following
representations and warranties as of the date hereof and the Date of Issuance: 
 (i) Existence and Power. Each of the
Servicer and COAF is a Texas corporation validly existing and in good standing under the laws of its state of organization and has, in all material respects, full power and authority to own its assets and operate its business as presently owned or
operated, and to execute, deliver and perform its obligations under the Transaction Documents to which it is a party. Each of the Servicer and COAF has obtained all necessary licenses and approvals in each jurisdiction where the failure to do so
could reasonably result in a Material Adverse Change. 
 (ii) Authorization and No Contravention. The execution,
delivery and performance by each of the Servicer and COAF of the Transaction Documents to which it is a party have been duly authorized by all necessary action on the part of the Servicer and COAF and do not contravene or constitute a default under
(A) any applicable law, rule or regulation, (B) its organizational documents or (C) any material indenture or material agreement or instrument to which the Servicer or COAF is a party or by which its properties are bound (other than

  

 11 








 violations of such laws, rules, regulations, indentures or agreements which do not affect the legality,
validity or enforceability of any of such agreements and which, individually or if the aggregate, and would not reasonably result in a Material Adverse Change. 
 (iii) No Consent Required. No approval or authorization by, or filing with, any Governmental Authority is required in connection
with the execution, delivery and performance by the Servicer or COAF of any Transaction Document other than (A) UCC filings, (B) approvals and authorizations that have previously been obtained and filings that have previously been made or
approvals, authorizations or filings which will be made on a timely fashion and (C) approval, authorizations or filings which, if not obtained or made, would not reasonably result in a Material Adverse Change. 
 (iv) Binding Effect. Each Transaction Document to which the Servicer or COAF is a party constitutes the legal, valid and binding
obligation of the Servicer enforceable against it in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, receivership, conservatorship or other similar laws
affecting creditors’ rights generally and, if applicable, the rights of creditors of limited liability companies from time to time in effect or by general principles of equity. 
 (v) No Proceedings. There are no actions, suits or proceedings pending or, to the knowledge of the Servicer or COAF, threatened
against the Servicer or COAF before or by any Governmental Authority that (A) assert the invalidity or unenforceability of this Agreement or any of the other Transaction Documents, (B) seeking to prevent the issuance of the Notes or the
consummation of any of the transactions contemplated by this Agreement or any of the other Transaction Documents, (C) seeking any determination or ruling that would materially and adversely affect the performance by the Servicer of its
obligations under this Agreement or any of the other Transaction Documents, or (D) relating to the Servicer or COAF that would materially and adversely affect the federal or Applicable Tax State income, excise, franchise or similar tax
attributes of the Notes. 
 (vi) Financial Statements. The Financial Statements of Capital One Financial Corporation
(A) are, as of the dates and for the periods referred to therein, complete and correct in all material respects, (B) present fairly the financial condition and results of operations of COAF as of the dates and for the periods indicated and
(C) have been prepared in accordance with generally accepted accounting principles consistently applied, except as noted therein (subject as to interim statements to normal year-end adjustments); since the date of the most recent Financial
Statements, there has been no Material Adverse Change in respect of COAF; and except as disclosed in the Financial Statements, COAF is not subject to any contingent liabilities or commitments that, individually or in the aggregate, have a material
possibility of causing a Material Adverse Change in respect of COAF. 
  

 12 








 (vii) Compliance With Securities Laws. The offer and sale of the Notes comply in
all material respects with all requirements of law, including all registration requirements of applicable securities laws. Without limitation of the foregoing, the Prospectus does not contain any untrue statement of a material fact and does not omit
to state a material fact necessary to make the statements made therein, in light of the circumstances under which they were made, not misleading; provided, however, that no representation is made with respect to the information in the Prospectus set
forth under the heading “THE NOTE GUARANTY INSURANCE POLICY AND THE NOTE INSURER,” the consolidated financial statements of the Note Insurer incorporated by reference in the Prospectus or the Underwriter Information. Neither the offer nor
the sale of the Notes has been or will be in violation of the Securities Act or any other federal or state securities laws. Neither the Issuer nor the Seller is required to be registered as an “investment company” under the Investment
Company Act. 
 (viii) Transaction Documents. Each of the representations and warranties of the Servicer and COAF
contained in the Transaction Documents is true and correct in all material respects, and the Servicer and COAF hereby make each such representation and warranty to, and for the benefit of, the Note Insurer as if the same were set forth in full
herein, provided that the remedy for any breach of this paragraph shall be limited to the remedies specified in the related Transaction Document. 
 (ix) Solvency. Each of the Servicer and COAF is solvent and will not be rendered insolvent by the Transaction and, after giving effect to the Transaction, neither the Servicer nor COAF will be left with an
unreasonably small amount of capital with which to engage in its business, nor does the Servicer or COAF intend to incur, or believe that it has incurred, debts beyond its ability to pay as they mature. Neither the Servicer nor COAF contemplates the
commencement of insolvency, bankruptcy, liquidation or consolidation proceedings or the appointment of a receiver, liquidator, conservator, trustee or similar official in respect of any COAF Company or any of their assets. 
 Section 2.02. Affirmative Covenants of the COAF Companies. The COAF Companies hereby agree that during the Term of the Insurance Agreement,
unless the Note Insurer shall otherwise expressly consent in writing: 
 (a) Compliance With Agreements and Applicable
Laws. The COAF Companies shall not be in default under the Transaction Documents and shall comply with all material requirements of any law, rule or regulation applicable to each such party in all circumstances where non-compliance could
reasonably result in a Material Adverse Change. Except in accordance with any provision of the Transaction Documents that expressly states Note Insurer consent is not required, no COAF Company shall agree to any amendment to or modification of the
terms of any Transaction Documents or its 
  

 13 








 respective organizational documents (including without limitation and as applicable its articles of
incorporation, partnership agreement, bylaws, certificate of formation and limited liability company agreement) unless the Note Insurer shall have otherwise consented. 
 (b) Corporate Existence. Each COAF Company, its successors and assigns, shall maintain its corporate or other existence and
shall at all times continue to be duly organized under the laws of its respective jurisdiction of incorporation or formation and duly qualified and duly authorized and shall conduct its business in accordance with the terms of its certificate of
incorporation and bylaws or other formation documents in all circumstances where failure could reasonably result in a Material Adverse Change. 
 (c) The Servicer To Provide Compliance Certificates; Accountants’ Reports; Other Information. The Servicer shall keep or cause to be kept in reasonable detail books and records of account of
COAF’s, and its consolidated subsidiaries’, assets and business, including, but not limited to, books and records relating to the Transaction. The Servicer shall furnish or cause to be furnished to the Note Insurer: 
 (i) Servicer Reports and Compliance Certificates. All reports, certificates and reviews required to be furnished under
Sections 3.8 and 3.9 of the Sale and Servicing Agreement. 
 (ii) Initial and Continuing Reports. On or before the
Closing Date, the Servicer will provide the Note Insurer a copy of the electronic file or other such medium as may be acceptable to the Note Insurer to be delivered to the Indenture Trustee setting forth, as to each Receivable, the information
required on the Schedule of Receivables. 
 (iii) Other Information. Promptly upon receipt thereof, copies of all
schedules, financial statements or other similar reports delivered to or by the Servicer pursuant to the terms of the Sale and Servicing Agreement and, promptly upon request, such other data or reports relating to the Transaction as the Note Insurer
may reasonably request. 
 The Note Insurer agrees that it and its agents, accountants and attorneys shall keep confidential
all financial statements, reports and other information delivered by the Servicer pursuant to this subsection 2.02(c) to the extent provided in Section 2.07 hereof. 
 (d) Access to Records; Discussions With Officers and Accountants. On an annual basis, or as often as the Note Insurer deems
appropriate upon the occurrence of an Insurance Agreement Event of Default, each COAF Company shall, upon the reasonable request of the Note Insurer, permit the Note Insurer or its authorized agents: 
 (i) to inspect its books and records as they may relate to the Notes, the obligations of such party under the Transaction Documents, and
the Transaction; 
  

 14 








 (ii) to discuss the affairs, finances and accounts of each COAF Company with the chief
operating officer and the chief financial officer of such COAF Company, as the case may be; and 
 (iii) with any COAF
Company’s consent, which consent shall not be unreasonably withheld, to discuss the affairs, finances and accounts of such COAF Company with such company’s independent accountants, provided that an officer of such COAF Company shall have
the right to be present during such discussions; provided, however, that upon the occurrence of an Insurance Agreement Event of Default, no such consent of the COAF Companies will be required but the Note Insurer will provide reasonable notice to
such COAF Company prior to such discussions and such discussions may not create an undue burden on such COAF Company’s or the accountants’ business. 
 Such inspections and discussions shall be conducted during normal business hours at the Note Insurer’s cost and expense and shall not
unreasonably disrupt the business of such COAF Company. The books and records of each COAF Company will be maintained at the address of such COAF Company designated herein for receipt of notices, unless the Servicer shall otherwise advise the
parties hereto in writing. 
 (e) Notice of Material Events. Each COAF Company shall be obligated (which
obligation shall be satisfied as to each if performed by any of them) promptly to inform the Note Insurer in writing of the occurrence of any of the following to the extent any of the following relate to it: 
 (i) the submission of any claim or the initiation of any legal process, litigation or administrative or judicial investigation, or
rule-making or disciplinary proceeding by or against any COAF Company that (A) could be required to be disclosed to the Commission or to any COAF Company’s shareholders or (B) is deemed reasonably likely to result in a Material
Adverse Change with respect to any COAF Company, or to the knowledge of such COAF Company, the promulgation of any proceeding or any proposed or final rule which would result in a Material Adverse Change with respect to any COAF Company; 

(ii) any change in the location of any COAF Company’s principal offices, jurisdiction of organization, legal name as indicated on
the public records of any COAF Company’s jurisdiction of organization which shows any COAF Company to be organized, or any change in the location of any COAF Company’s books and records; 
 (iii) the occurrence of any Default, Insurance Agreement Event of Default, Event of Default under the Indenture; Servicer Termination
Event or of any Material Adverse Change; 
 (iv) the commencement of any proceedings by or against any COAF Company under any
applicable bankruptcy, reorganization, liquidation, rehabilitation, insolvency or other similar law now or hereafter in effect or of any 
  

 15 








 proceeding in which a receiver, liquidator, conservator, trustee or similar official shall have been, or
may be, appointed or requested for any COAF Company or any of its assets; or 
 (v) the receipt of notice that (A) any
COAF Company is being placed under regulatory supervision, (B) any license, permit, charter, registration or approval necessary for the conduct of any COAF Company’s business is to be, or may be suspended or revoked, or (C) any COAF
Company is to cease and desist any practice, procedure or policy employed by any COAF Company in the conduct of its business, and such suspension, revocation or cessation may reasonably be expected to result in a Material Adverse Change with respect
to any COAF Company. 
 (f) Financing Statements and Further Assurances. The Servicer will cause to be filed all
necessary financing statements or other instruments, and any amendments or continuation statements relating thereto, necessary to be kept and filed in such manner and in such places as may be required by law to preserve and protect fully the
interest of the Indenture Trustee in the Trust Estate. Each COAF Company shall, upon the request of the Note Insurer, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, within 10 days of
such request, such amendments hereto and such further instruments and take such further action as may be reasonably necessary to effectuate the intention, performance and provisions of the Transaction Documents. In addition, each of the COAF
Companies agrees to cooperate with S&P, Fitch and Moody’s in connection with any review of the Transaction that may be undertaken by S&P, Fitch and Moody’s after the date hereof. 
 (g) Maintenance of Licenses. Each COAF Company or any successors thereof shall maintain all licenses, permits, charters and
registrations which are material to the conduct of its business in all circumstances where failure reasonably could result in a Material Adverse Change. 
 (h) Redemption of Notes. The Servicer shall instruct the Indenture Trustee, upon redemption of the Notes pursuant to the Transaction Documents, to furnish to the Note Insurer a notice of such redemption
and, upon a redemption or other payment of all of the Notes to surrender the Note Insurance Policy to the Note Insurer for cancellation. 
 (i) Third-party Beneficiary. Subject to the provisions of the Transaction Documents, each COAF Company agrees that the Note Insurer shall have all rights provided to the Note Insurer in the Transaction
Documents and that the Note Insurer shall constitute a third-party beneficiary of the Transaction Documents; provided, however, it is expressly acknowledged by the Note Insurer that the sole remedy for any breach of representation and warranty of
COAF and the Seller under Section 3.2 of the Purchase Agreement and Section 2.2, 3.2, 3.3, 3.4 or 3.5 of the Sale and Servicing Agreement, the remedy for any breach shall be limited to the repurchase remedy specified in the Purchase
Agreement. 
  

 16 








 (j) Amendments. The Servicer will provide the Note Insurer with written
notice of any change or amendment to any Transaction Document as currently in effect. 
 (k) Closing Documents.
The Servicer shall provide or cause to be provided to the Note Insurer an executed original copy of each document executed in connection with the Transaction within 90 days after the date of closing. 
 (l) Suspension of Filing. The Seller and the Issuer shall suspend filing periodic Exchange Act Reports by filing Form
15 as soon as reasonably practicable after they are permitted to do so under the Securities Exchange Act and the rules and regulations promulgated thereunder. 
 Section 2.03. Negative Covenants of the COAF Companies. Each COAF Company hereby agrees that during the Term of the Insurance Agreement, unless the Note Insurer shall otherwise expressly consent in
writing: 
 (a) Impairment of Rights. No COAF Company shall take any action, or fail to take any action, if such
action or failure to take action is reasonably likely to result in a Material Adverse Change with respect to any COAF Company, or may interfere in any material respect with the enforcement of any rights of the Note Insurer under or with respect to
the Transaction Documents. Each COAF Company shall give the Note Insurer written notice of any such action or, to the best of the knowledge of any COAF Company, failure to act on the earlier of (i) the date upon which any publicly available
filing or release is made with respect to such action or failure to act or (ii) promptly prior to the date of consummation of such action or failure to act. Each COAF Company shall furnish to the Note Insurer all information reasonably
requested by it that is reasonably necessary to determine compliance with this paragraph. 
 (b) Waiver, Amendments,
Etc. Except in accordance with the Transaction Documents, no COAF Company shall waive, modify or amend, or consent to any waiver, modification or amendment of, any of the terms, provisions or conditions of the Transaction Documents without
the consent of the Note Insurer. 
 (c) Transaction Documents. No COAF Company will at any time in the future
deny that the Transaction Documents constitute the legal, valid and binding obligations of each COAF Company, as applicable. 
 Section 2.04. Representations and Covenants of Indenture Trustee. 
 (a) Representations and
Warranties. As of the Date of Issuance, each of the representations and warranties of the Indenture Trustee set forth in the Transaction Documents are true and correct in all material respects, and the Indenture Trustee makes each such
representation and warranty to, and for the benefit of, the Note Insurer as if the same were set forth in full herein. 
 (b)
Compliance and Amendments. The Indenture Trustee shall comply in all material respects with the terms and conditions of the Transaction Documents to which it is a party, and the Indenture Trustee shall not agree to any amendment to or
modification 
  

 17 








 of the terms of any of the Transaction Documents to which both the Indenture Trustee and the Note Insurer
are parties unless the Note Insurer shall otherwise consent, provided that such consent shall not be required if a Note Insurer Default has occurred and is continuing. 
 Section 2.05. Representations, Warranties and Covenants of the Issuer. The Issuer hereby represents and warrants as follows: 
 (a) Representations and Warranties. As of the Date of Issuance, each of the representations and warranties of the Issuer set
forth in the Transaction Documents is true and correct in all material respects and the Issuer makes each such representation and warranty to, and for the benefit of, the Note Insurer as if the same were set forth in full herein. 
 (b) Compliance and Amendments. The Issuer shall comply in all material respects with the terms and conditions of the
Transaction Documents it is a party and, except in accordance with the Transaction Documents, the Issuer shall not agree to any amendment to or modification of the terms of any of the Transaction Documents to which it is a party unless the Note
Insurer shall otherwise give its prior written consent. 
 (c) Principal Place of Business. The principal place
of business of the Issuer is located in Wilmington, Delaware. 
 Section 2.06. Representations and Warranties of Note Insurer.
The Note Insurer represents, warrants and agrees as follows as of the Closing Date or such other date as specified below: 
 (a) Organization and Licensing. The Note Insurer is a duly organized and validly existing New York stock insurance corporation duly qualified to conduct an insurance business in the State of New York and in any other
jurisdiction where qualification may be necessary to accomplish the Transaction. 
 (b) Corporate Power. The
Note Insurer has the corporate power and authority to issue the Note Insurance Policy and execute and deliver this Insurance Agreement and to perform all of its obligations hereunder and thereunder. 
 (c) Authorization; Approvals. All proceedings legally required for the execution of the Policies and the execution,
issuance, delivery and performance of the Policies and this Insurance Agreement have been taken and all licenses, orders, consents or other authorizations or approvals of the Note Insurer’s Board of Directors or stockholders or any governmental
boards or bodies legally required for the enforceability of the Policies and this Insurance Agreement have been obtained or are not material to the enforceability of the Policies and this Insurance Agreement. 
 (d) Enforceability. The Policies, when issued, will constitute and this Insurance Agreement constitutes, legal, valid and
binding obligations of the Note Insurer, enforceable in accordance with their respective terms, subject to bankruptcy, insolvency, reorganization, moratorium, receivership and other similar laws affecting creditors’ rights 
  

 18 








 generally and by general principles of equity and subject to principles of public policy limiting the
right to enforce the indemnification provisions contained therein and herein, insofar as such provisions relate to indemnification for liabilities arising under federal securities laws. 
 (e) No Conflict. The execution by the Note Insurer of the Policies and this Insurance Agreement will not, and the
performance of the provisions thereof and hereof will not, conflict with or result in a breach of any of the terms, conditions or provisions of the Articles of Incorporation or By Laws of the Note Insurer, or any restriction contained in any
contract, agreement or instrument to which the Note Insurer is a party or by which it is bound; constitute a default under any of the foregoing which would materially and adversely affect its ability to perform its obligations under the Policies or
this Insurance Agreement. 
 (f) Exempt from Registration. The Policies, when issued, will be exempt from
registration under the Securities Act. 
 (g) Note Insurer Information. The Note Insurer Information is true and
correct in all material respects and does not contain any untrue statement of material fact. 
 (h) No
Litigation. There are no actions, suits, proceedings or investigations pending or, to the best of the Note Insurer’s knowledge, threatened against it at law or in equity or before or by any court, governmental agency, board or
commission or any arbitrator which, if decided adversely, would materially and adversely affect its ability to perform its obligations under the Policies or this Insurance Agreement. 
 (i) Compliance With Law, Etc. No practice, procedure or policy employed, or proposed to be employed, by the Note Insurer in
the conduct of its business violates any law, regulation, judgment, agreement, order or decree applicable to the Note Insurer that, if enforced, could result in a Material Adverse Change with respect to the Insurer. 
 (j) No Affiliations. There are no affiliations relating to the Note Insurer and any of the following parties or their affiliates:
JPMorgan Chase Bank, N.A. (the Indenture Trustee), Wilmington Trust Company (the Owner Trustee) or Deutsche Bank AG, New York Branch (the Swap Counterparty). 
 (k) As of the Closing Date and as of each date that Note Insurer Financial Information is incorporated into the Prospectus or any Exchange
Act Report, the Note Insurer or the entity that consolidates the Note Insurer is required to file reports with the Commission pursuant to Section 13(a) or 15(d) of the Exchange Act. 
 (l) As of the Closing Date and as of the date of the Prospectus, the Note Insurer or the entity that consolidates the Note Insurer has
filed all reports and other materials required to be filed during the preceding 12 months (or such shorter period that such party was required to file such reports and materials). As of each date after the Closing Date that Note Insurer Financial
Information is incorporated into the Prospectus or any Exchange Act Report, the Note Insurer or the entity that consolidates the Note Insurer has filed, or during the continuance of a Positive Guidance Condition (as defined 
  

 19 








 in Section 4.08), has used its best efforts to file, all reports and other materials required to be
filed during the preceding 12 months (or such shorter period that such party was required to file such reports and materials). 
 (m) As of the Closing Date and as of the date of the Prospectus, the reports filed by the Note Insurer, or entity that consolidates the Note Insurer, include (or properly incorporate by reference) the financial statements of the Note
Insurer. As of each date after the Closing Date that Note Insurer Financial Information is incorporated into the Prospectus or any Exchange Act Report, the reports filed by the Note Insurer, or any entity that consolidates the Note Insurer, include
(or properly incorporate by reference) the financial statements of the Note Insurer or during the continuance of a Positive Guidance Condition (as defined in Section 4.08), the Note Insurer has used its best efforts to cause the financial
statements of the Note Insurer to be included or properly incorporated by reference. The Note Insurer agrees to respond promptly to a written request from the Seller, which request shall be made no more frequently than once a calendar quarter, as to
whether it or the entity that consolidates it is required to make and has made the filings required by Section 13(a) or Section 15(d) of the Securities Exchange Act. 
 (n) As of the Closing Date and as of each date that Note Insurer Financial Information is incorporated into the Prospectus or any Exchange
Act Report, to the best of the Note Insurer’s knowledge, the accountants who certify the financial statements and supporting schedules included in the Note Insurer Financial Information (if applicable) are independent registered public
accountants as required by the Securities Act. 
 (o) Financial Information. As of the Pricing Date, the date of the
Prospectus Supplement and the Closing Date, the consolidated financial statements of the Insurer and subsidiaries as of December 31, 2005 and December 31, 2004, and for each of the years in the three-year period ended December 31,
2005, prepared in accordance with U.S. generally accepted accounting principles, included in the Annual Report on Form 10-K of MBIA Inc. (which was filed with the Commission on March 8, 2006; Commission File No. 1-09583) as they relate to
the Note Insurer, which are incorporated by reference into the Prospectus Supplement, fairly present in all material respects the financial condition of the Insurer as of such dates and for the periods covered by such statements in accordance with
accounting principles generally accepted in the United States of America. Since December 31, 2005 and as of the Pricing Date, the date of the Prospectus Supplement and the Closing Date, there has been no material change in the financial
condition of the Note Insurer that would materially adversely affect its ability to perform its obligations under the Note Policy. As of the date filed with the Commission and incorporated by reference in the Exchange Act Reports of the Seller as
contemplated by Section 4.08 or provided to the Seller pursuant to Section 2.07(b), such financial statements fairly present in all material respects the financial condition of the Note Insurer as of such dates and for the periods covered
by such financial statements in accordance with accounting principles generally accepted in the United States (subject to normal year-end audit adjustments in the case of any interim financial statements). 
  

 20 








 (p) As of the Closing Date and as of the date of the Prospectus, the Note Insurer
Financial Information incorporated by reference in the Registration Statement relating to the Prospectus (including through filing of an Exchange Act Report) complied in all material respects with the requirements of Item 1114(b)(2) of
Regulation AB. As of each date after the Closing Date in which Note Insurer Financial Information is incorporated into the Prospectus or any Exchange Act Report, the Note Insurer Financial Information incorporated by reference in the Registration
Statement relating to the Prospectus (including through filing of an Exchange Act Report), complied in all material respects with the requirements of Item 1114(b)(2) of Regulation AB or during the continuance of a Positive Guidance Condition
(as defined in Section 4.08), the Note Insurer has used its best efforts to ensure such material compliance. 
 Section 2.07.
Covenant of Note Insurer; Confidentiality. 
 (a) The Note Insurer hereby covenants as follows: The Note Insurer agrees
that it and its shareholders, directors, agents, accountants and attorneys shall keep confidential any matter of which it becomes aware through such inspections or discussions (unless readily available from public sources), except as may be
otherwise required by regulation, law or court order or requested by appropriate governmental authorities or as necessary to preserve its rights or security under or to enforce the Transaction Documents, provided that the foregoing shall not limit
the right of the Note Insurer to make such information available to its regulators, securities rating agencies, reinsurers, credit and liquidity providers, counsel and accountants. If the Note Insurer is requested or required (by oral questions,
interrogatories, requests for information or documents subpoena, civil investigative demand or similar process) to disclose any information of which it becomes aware through such inspections or discussions, the Note Insurer will promptly notify COAF
or the Servicer of such request(s) so that COAF or the Servicer may seek an appropriate protective order and/or waive the Note Insurer’s compliance with the provisions of this Insurance Agreement. If, in the absence of a protective order or the
receipt of a waiver hereunder, the Note Insurer is, nonetheless, in the opinion of its counsel, compelled to disclose such information to any tribunal or else stand liable for contempt or suffer other censure or significant penalty, the Note Insurer
may disclose such information to such tribunal that the Note Insurer is compelled to disclose, provided that a copy of all information disclosed is provided to COAF or the Servicer, as the case maybe, promptly upon such disclosure, so long as the
Note Insurer is not prohibited from providing notice to COAF or Servicer by such tribunal. 
 (b) The Note Insurer agrees to
comply with reasonable requests of the Seller for the delivery of such additional information as may be necessary for the Seller to comply with Item 1114 of Regulation AB, so long as such information is available to the Note Insurer and not
otherwise available to the Seller. 
  

 21 








 ARTICLE III 
 THE POLICIES; REIMBURSEMENT 
 Section 3.01. Issuance of the Policies. The Note Insurer
agrees to issue the Policies on the Closing Date subject to satisfaction of the conditions precedent set forth below: 
 (a)
Payment of Initial Premium and Expenses. The Note Insurer shall have been paid, by the Servicer, that portion of a nonrefundable Premium payable on the Date of Issuance and the Servicer shall agree to reimburse or pay directly other
fees and expenses identified in Section 3.02 hereof as payable, and the Note Insurer shall have received a fully executed copy of the Fee Letter. 
 (b) Transaction Documents. The Note Insurer shall have received a copy of each of the Transaction Documents, in form and substance satisfactory to the Note Insurer, duly authorized, executed and
delivered by each party thereto. 
 (c) Certified Documents and Resolutions. The Note Insurer shall have
received a copy of (i) the certificate of incorporation, limited liability company agreement and bylaws or other organizational documents, as applicable, of each COAF Company and (ii) the resolutions of each COAF Company’s Board of
Directors or members or a committee thereof, as applicable, authorizing the issuance of the Notes and the execution, delivery and performance by each COAF Company of the Transaction Documents and the transactions contemplated thereby, certified by
the Secretary or an Assistant Secretary of each COAF Company (which certificate shall state that such certificate of incorporation, bylaws and resolutions or other organizational documents are in full force and effect without modification on the
Date of Issuance). 
 (d) Incumbency Certificate. The Note Insurer shall have received a certificate of the
Secretary or an Assistant Secretary of each COAF Company certifying the names and signatures of the officers of such COAF Company authorized to execute and deliver the Transaction Documents and that shareholder, partner or member (as applicable)
consent to the execution and delivery of such documents is not necessary. 
 (e) Representations and Warranties;
Certificate. The representations and warranties of each COAF Company set forth or incorporated by reference in this Insurance Agreement shall be true and correct as of the Date of Issuance as if made on the Date of Issuance, and the Note
Insurer shall have received a certificate of appropriate officers of each COAF Company to that effect. 
 (f) Opinions
of Counsel. 
 (i) In-house counsel for COAF shall have issued its favorable opinion, in form and substance acceptable
to the Note Insurer and its counsel, regarding the corporate existence and authority of COAF, in its capacity as seller under the Purchase Agreement and as Servicer. 
  

 22 








 (ii) The law firm of Richards, Layton & Finger, P.A. shall have issued its
favorable opinion, in form and substance acceptable to the Note Insurer and its counsel, regarding the corporate existence and authority of the Seller. 
 (iii) The law firm of Richards, Layton & Finger, P.A. shall have issued its favorable opinion, in form and substance acceptable to the Note Insurer and its counsel, regarding the corporate existence and
authority of the Issuer. 
 (iv) The law firm of Mayer, Brown, Rowe & Maw LLP shall have furnished its favorable
opinion in form and substance acceptable to the Note Insurer and its counsel, regarding the validity and enforceability of the Transaction Documents against COAF, in its capacity as Seller under the Purchase Agreement and as Servicer. 
 (v) The law firm of Mayer, Brown, Rowe & Maw LLP shall have furnished its favorable opinion in form and substance acceptable to
the Note Insurer and its counsel, regarding the validity and enforceability of the Transaction Documents against the Seller and the Issuer. 
 (vi) The law firm of Mayer, Brown, Rowe & Maw LLP shall have furnished its opinions, in form and substance acceptable to the Note Insurer and its counsel, regarding the transfer of the Trust Estate, certain
bankruptcy and non-consolidation issues, security interest issues and the tax treatment of the Notes under federal tax laws. 
 (vii) The Note Insurer shall have received such other opinions of counsel, in form and substance acceptable to the Note Insurer and its counsel, addressing such other matters as the Note Insurer may reasonably request. 
 (g) Approvals, Etc. The Note Insurer shall have received true and correct copies of all approvals, licenses and consents, if
any, including, without limitation, any required approval of the shareholders of any COAF Company, required in connection with the Transaction. 
 (h) No Litigation, Etc. No suit, action or other proceeding, investigation or injunction, or final judgment relating thereto, shall be pending or, to the knowledge of any COAF Company, threatened before
any court or governmental agency in which it is sought to restrain or prohibit or to obtain damages or other relief in connection with the Transaction Documents or the consummation of the Transaction. 
 (i) Legality. No statute, rule, regulation or order shall have been enacted, entered or deemed applicable by any government
or governmental or administrative agency or court that would make the transactions contemplated by any of the Transaction Documents illegal or otherwise prevent the consummation thereof. 
 (j) Satisfaction of Conditions of the Underwriting Agreement. All conditions in the Underwriting Agreement relating to the
Underwriters’ obligation to purchase the Notes shall have been satisfied. 
  

 23 








 (k) Issuance of Ratings. The Note Insurer shall have received confirmation
that the risk secured by the Note Insurance Policy constitutes an investment-grade risk, that the Class A-1 Notes when issued will be rated “A-1+” by S&P, “Prime-1” by Moody’s and “F1+” by Fitch and that
the Class A-2 Notes, Class A-3 Notes, and Class A-4 Notes, when issued, will be rated “AAA” by S&P, “Aaa” by Moody’s and “AAA” by Fitch. 
 (l) No Default. No Default or Event of Default shall have occurred. 
 (m) Additional Items. The Note Insurer shall have received such other documents, instruments, approvals or opinions
requested by the Note Insurer as may be reasonably necessary to effect the Transaction, including, but not limited to, evidence satisfactory to the Note Insurer that the conditions precedent, if any, in the Transaction Documents have been satisfied.

 (n) Underwriting Agreement. The Note Insurer shall have received copies of each of the documents, and
specifically be entitled to rely on each of the documents, required to be delivered to the Underwriters pursuant to the Underwriting Agreement. 
 (o) Conform to Documents. The Note Insurer and its counsel shall have determined that all documents, certificates and opinions to be delivered in connection with the Notes conform to the terms of the
Transaction Documents. 
 (p) Perfection of Security Interest. All actions required to be taken to perfect the
security interest of the Issuer and the Indenture Trustee in the Trust Estate shall have been performed. 
 Section 3.02. Payment of
Fees and Premium. 
 (a) Legal and Accounting Fees. The Servicer shall pay or cause to be paid, on the Date
of Issuance, legal fees and disbursements incurred by the Note Insurer in connection with the issuance of the Policies in accordance with the terms of the Fee Letter. Any fees of the Note Insurer’s auditors payable in respect of any amendment
or supplement to the Prospectus or any other Prospectus incurred after the Date of Issuance shall be paid by the Servicer on demand. 
 (b) Rating Agency Fees. The Servicer shall promptly pay the initial fees of the Rating Agencies with respect to the Notes and the transactions contemplated hereby following receipt of a statement with respect thereto, and
shall pay or cause to be paid any subsequent fees of the Rating Agencies with respect to, and directly allocable to, the Notes. The Note Insurer shall not be responsible for any fees or expenses of the Rating Agencies. The fees for any other rating
agency shall be paid by the party requesting such other rating agency’s rating. 
 (c) Premium. In
consideration of the issuance by the Note Insurer of the Policies, the Note Insurer shall be entitled to receive the Premium as and when due in accordance with the terms of the Fee Letter (i) in the case of Premium due on or before the Date of
Issuance, directly from the Servicer and (ii) in the case of Premium due after 
  

 24 








 the Date of Issuance, pursuant to the Indenture. The Premium paid hereunder or under the Indenture shall
be nonrefundable without regard to whether the Note Insurer makes any payment under the Policies or any other circumstances relating to the Notes or provision being made for payment of the Notes prior to maturity. The Servicer or the Indenture
Trustee, as the case may be, shall make all payments of Premium to be made by them by wire transfer to an account designated from time to time by the Note Insurer by written notice to the Servicer or the Indenture Trustee, respectively. 

Section 3.03. Reimbursement and Additional Payment Obligation. 
 (a) Pursuant to and in accordance with the Indenture and the priorities established in Section 4.4(a) of the Sale and Servicing
Agreement, the Note Insurer shall be entitled to (i) reimbursement for any payment made by the Note Insurer under the Policies, which reimbursement shall be due and payable on the date that any amount is to be paid pursuant to a Notice (as
defined in the Note Insurance Policy) or Demand for Payment (as defined in the Swap Policy), in an amount equal to the amount to be so paid and all amounts previously paid that remain unreimbursed, together with interest on any and all amounts
remaining unreimbursed (to the extent permitted by law, if in respect of any unreimbursed amounts representing interest) from the date such amounts became due until paid in full (after as well as before judgment), at a rate of interest equal to the
Late Payment Rate, (ii) payment or reimbursement of any other amounts owed to the Note Insurer under this Agreement together with interest thereon at a rate equal to the Late Payment Rate and (iii) reimbursement for any payments made by
the Insurer with respect to the fees and expenses of a successor Servicer or with respect to any transition costs (not to exceed $200,000 in the aggregate) relating to the transfer of servicing from the Servicer to such Successor Servicer together
with interest thereon at a rate equal to the Late Payment Rate. 
 (b) The Servicer agrees to pay to the Note Insurer as
follows: anything in Section 3.03(a) to the contrary notwithstanding, the Note Insurer shall be entitled to reimbursement from the Servicer (i) for payments made under the Policies arising as a result of the failure by any COAF Company to
repurchase any Receivable required to be repurchased pursuant to Section 3.3 of the Purchase Agreement and Sections 2.3, 2.6 and 3.6 of the Sale and Servicing Agreement, together with interest on any and all amounts remaining unreimbursed
(to the extent permitted by law, if in respect of any unreimbursed amounts representing interest) from the date such amounts became due until paid in full (after as well as before judgment), at a rate of interest equal to the Late Payment Rate, and
(ii) for payments made under the Policies, arising as a result of the Servicer’s failure to deposit into the Collection Account any amount required to be so deposited pursuant to any Transaction Document, together with interest on any and
all amounts remaining unreimbursed (to the extent permitted by law, if in respect to any unreimbursed amounts representing interest) from the date such amounts became due until paid in full (after as well as before judgment), at a rate of interest
equal to the Late Payment Rate. 
 (c) The Servicer and the Issuer agree to pay to the Note Insurer as follows: any and all
charges, fees, costs and expenses that the Note Insurer may reasonably pay or 
  

 25 








 incur, including, but not limited to, reasonable attorneys’ and accountants’ fees and expenses,
in connection with (i) the enforcement, defense or preservation of any rights in respect of any of the Transaction Documents, including, without limitation, instituting, defending, monitoring or participating in any litigation or proceeding
(including, without limitation, any insolvency or bankruptcy proceeding in respect of any Transaction participant or any affiliate thereof) relating to any of the Transaction Documents, any party to any of the Transaction Documents, in its capacity
as such a party, or the Transaction (ii) any action, proceeding or investigation affecting the Issuer, the Trust Estate or the rights or obligations of the Note Insurer under the Policies or the Transaction Documents, including (without
limitation) any judgment or settlement entered into affecting the Note Insurer or the Note Insurer’s interests, or (iii) any consent, amendment, waiver or other action with respect to, or related to, any Transaction Document, whether or
not executed or completed (“Reimbursable Amounts”). Reimbursable Amounts due to the Note Insurer shall bear interest at a rate equal to the Late Payment Rate. In the event that the Servicer fails to pay to the Note Insurer any Reimbursable
Amounts, the Note Insurer shall be entitled to reimbursement of such amount together with interest thereon from Section 4.4 of the Sale and Servicing Agreement or Section 5.4 of the Indenture, as applicable. In addition, the Note Insurer
reserves the right to charge a reasonable fee as a condition to executing any waiver, consent or amendment proposed in respect of any of the Transaction Documents. 
 (d) Servicer agrees to pay to the Note Insurer as follows: interest on any and all amounts described in subclauses (b), (c) and
(e) of this Section 3.03 from the date payable or paid by such party until payment thereof in full, and interest on any and all amounts described in Section 3.02 from the date due until payment thereof in full, in each case, payable
to the Note Insurer at the Late Payment Rate per annum. 
 (e) The Servicer agrees to pay to the Note Insurer as follows: any
payments made by the Note Insurer on behalf of, or advanced to, the Servicer or COAF, respectively, including, without limitation, any amounts payable by the Servicer or COAF pursuant to the Notes or any other Transaction Documents. All such amounts
are to be immediately due and payable without demand. 
 (f) [Reserved]. 
 (g) Notwithstanding any other provisions of this Agreement, none of the terms and provisions of this Agreement shall ever be construed to
create a contract to pay to the Note Insurer for the use, forbearance or detention of money, interest in excess of the maximum amount of interest permitted to be charged by the Note Insurer to any of the COAF Companies under applicable state or
federal law from time to time in effect, and none of the COAF Companies shall ever be required to pay interest in excess of such maximum amount. If, for any reason, interest is paid hereunder in excess of such maximum amount, then promptly upon any
determination that such excess has been paid the Note Insurer will, at its option, either refund such excess to the payor thereof or apply such excess to the principal owing by such payor hereunder. 
  

 26 








 Section 3.04. Indemnification; Limitation of Liability. 
 (a) In addition to any and all rights of indemnification or any other rights of the Note Insurer pursuant hereto or under law or equity,
the Servicer, the Issuer and COAF and any successor thereto agree to pay, and to protect, indemnify and save harmless, the Note Insurer and its officers, directors, shareholders, employees, agents and each person, if any, who controls the Note
Insurer within the meaning of either Section 15 of the Securities Act or Section 20 of the Securities Exchange Act (the “Note Insurer Indemnified Parties”) from and against any and all claims, losses, liabilities (including
penalties), actions, suits, judgments, demands, damages, costs or reasonable expenses (including, without limitation, reasonable fees and expenses of attorneys, consultants and auditors and reasonable costs of investigations) or obligations
whatsoever paid by the Note Insurer Indemnified Parties (herein collectively referred to as “Liabilities”) of any nature (but excluding lost profits and other consequential damages) arising out of or relating to the transactions
contemplated by the Transaction Documents by reason of: 
 (i) to the extent not covered by the Indemnification Agreement any
act or omission of any COAF Company in connection with the offering, issuance, sale or delivery of the Notes other than by reason of false or misleading Note Insurer Information or Underwriter Information; 
 (ii) any untrue statement or alleged untrue statement of a material fact contained in any of the Capital One Information or any omission
or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; 
 (iii) the misfeasance or malfeasance of, or negligence or theft committed by, any director, officer, employee or agent of any COAF
Company; 
 (iv) the violation by any COAF Company of any federal or state securities, banking or antitrust laws, rules or
regulations in connection with the issuance, offer and sale of the Notes or the transactions contemplated by the Transaction Documents; 
 (v) the violation by any COAF Company of any federal or state laws, rules or regulations relating to the Transaction or the origination of the Receivables, including, without limitation, any consumer protection,
lending and disclosure laws or any laws with respect to the maximum amount of interest permitted to be received on account of any loan of money or with respect to the Receivables; 
 (vi) the breach by the Servicer, the Issuer or COAF of any of its obligations under this Insurance Agreement or any of the other
Transaction Documents (other than breaches under Section 3.2 of the Purchase Agreement or Sections 2.2, 3.2, 3.3, 3.4 or 3.5 of the Sale and Servicing Agreement); and 
  

 27 








 (vii) the breach by the Servicer, the Issuer or COAF of any representation or warranty on
the part of the Servicer, the Issuer or COAF contained in this Insurance Agreement or any of the other Transaction Documents or in any certificate or report furnished or delivered to the Note Insurer thereunder other than any breach for which the
remedy under the Transaction Documents is the repurchase of a Receivable, provided that such Receivable has been repurchased in accordance with the Transaction Documents. 
 This indemnity provision shall survive the termination of this Insurance Agreement and shall survive until the statute of limitations has
run on any causes of action which arise from one of these reasons and until all suits filed as a result thereof have been finally concluded. 
 (b) In addition to any and all rights of indemnification or any other rights of the Servicer, the Seller, the Issuer and COAF pursuant hereto or under law or equity, the Note Insurer agrees to pay, and to protect,
indemnify and save harmless, the Servicer, the Seller, the Issuer and COAF and their respective officers, directors, shareholders, employees, agents and each person, if any, who controls the Servicer, the Seller, the Issuer or COAF within the
meaning of either Section 15 of the Securities Act or Section 20 of the Securities Exchange Act (the “Capital One Indemnified Parties”) from and against any and all claims, losses, liabilities (including penalties), actions,
suits, judgments, demands, damages, costs or reasonable expenses (including, without limitation, reasonable fees and expenses of attorneys, consultants and auditors and reasonable costs of investigations) or obligations whatsoever paid by the
Capital One Indemnified Parties (herein collectively referred to as “Liabilities”) of any nature arising out of or relating to the transactions contemplated by the Transaction Documents by reason of: 
 (i) any untrue statement or alleged untrue statement of a material fact contained in any of the Note Insurer Information or any omission
or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; 
 (ii) a breach of any of the representations, warranties or agreements of Note Insurer contained in Section 2.06 hereof; or

 (iii) any failure of the Note Insurer to make a payment required to be made under the Policies. 
 provided, however, that the Note Insurer’s liability, in the case of a breach of any of the representations, warranties or agreements
of Note Insurer contained in paragraphs (l) through (p) of Section 2.06 hereof, to the extent such representations, warranties or agreements speak as of a date that occurs after the Closing Date, will be limited to (a) the actual
damages incurred by the Sponsor and the Seller (or the Capital One Indemnified Parties in the case of the indemnity provided in (ii) above), and (b) lost profits and other consequential damages, in each case as a direct result of a
determination by the Commission that the Seller is no longer eligible to file 
  

 28 








 registration statements on Form S-3, such determination being based solely on the Note Insurer’s breach of
paragraphs (l) through (p) of Section 2.06 hereof, and the Note Insurer’s liability for the damages described in clause (b) above shall in no event exceed as of any date the sum of (x) the aggregate amount of premium
received by the Note Insurer in connection with the transactions described by this Agreement as of such date and (y) as of such date and without duplication of (x) above the aggregate amount of premium expected to be received by the Note
Insurer assuming that the Loans pay down using a 1.7% ABS prepayment speed (as described in the Prospectus Supplement) and further assuming that the clean up call is exercised by the Servicer at its earliest opportunity. 
 (c) In addition to any and all rights of indemnification or any rights of the Servicer, the Seller, the Issuer and COAF pursuant hereto or
under law or equity, the Note Insurer agrees to pay, and to protect, indemnify and save harmless, the Capital One Indemnified Parties from and against, any and all claims, losses, liabilities (including penalties), actions, suits, judgments,
demands, damages, costs or expenses (including reasonable fees and expenses of attorneys, consultants and auditors and reasonable costs of investigations) of any nature arising out of or by reason of: (i) any untrue statement of a material fact
or an omission to state a material fact necessary in order to make the statements therein in light of the circumstances in which they were made not misleading contained in the consolidated financial statements of MBIA Insurance Corporation and
incorporated by reference into the Exchange Act Reports pursuant to Section 4.08 of this Agreement; or (ii) subject to the limitations on liability set forth in Section 4.08 of this Agreement, any failure of the Note
Insurer to comply with its obligations under Section 4.08 of this Agreement. 
 (d) Any party which proposes to
assert the right to be indemnified under this Section 3.04 will, promptly after receipt of notice of commencement of any action, suit or proceeding against such party in respect of which a claim is to be made against the indemnifying party
under this Section 3.04(d), notify the indemnifying party of the commencement of such action, suit or proceeding, enclosing a copy of all papers served. In case any action, suit or proceeding shall be brought against any indemnified party and
it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in, and, to the extent that it shall wish, to assume the defense thereof, with counsel reasonably satisfactory to such
indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal or other expenses other
than reasonable costs of investigation subsequently incurred by such indemnified party in connection with the defense thereof. The indemnified party shall have the right to employ its counsel in any such action the defense of which is assumed by the
indemnifying party in accordance with the terms of this subsection (c), but the fees and expenses of such counsel shall be at the expense of such indemnified party unless the employment of counsel by such indemnified party has been authorized by the
indemnifying party. The indemnifying party shall not be liable for any settlement of any action or claim effected without its consent. 
 Section 3.05. Payment Procedure. In the event of any payment by the Note Insurer, the Indenture Trustee and the Servicer agree to accept the voucher or other evidence of payment 
  

 29 








 as prima facie evidence of the propriety thereof and the liability therefor to the Note Insurer. All payments to be made
to the Note Insurer under this Insurance Agreement shall be made to the Note Insurer in lawful currency of the United States of America in immediately available funds at the notice address for the Note Insurer as specified in the Indenture on
the date when due or as the Note Insurer shall otherwise direct by written notice to the other parties hereto. In the event that the date of any payment to the Note Insurer or the expiration of any time period hereunder occurs on a day which is not
a Business Day, then such payment or expiration of time period shall be made or occur on the next succeeding Business Day with the same force and effect as if such payment was made or time period expired on the scheduled date of payment or
expiration date. Payments to be made to the Note Insurer under this Insurance Agreement shall bear interest at the Late Payment Rate from the date when due to the date paid. 
 Section 3.06. Subrogation. The parties hereto acknowledge that, to the extent of any payment made by the Note Insurer pursuant to the
Policies, the Note Insurer shall be fully subrogated to the extent of such payment plus interest thereon at the Late Payment Rate, to the rights of the Noteholders or the Swap Provider, as the case may be, to any moneys paid or payable in respect of
the Notes or the Swap Agreement, as the case may be, under the Transaction Documents or otherwise subject to applicable law. The parties hereto agree to such subrogation and further agree to execute such instruments and to take such actions as, in
the sole and reasonable judgment of the Note Insurer, are necessary to evidence such subrogation and to perfect the rights of the Note Insurer to receive any such moneys paid or payable in respect of the Notes or the Swap Agreement, under the
Transaction Documents or otherwise. 
 Section 3.07. Reimbursement. The parties hereto acknowledge that, to the extent of any
payment made by the Note Insurer pursuant to the Policies, the Note Insurer has the right to be reimbursed such amounts plus interest thereon at the Late Payment Rate, all pursuant to and in accordance with the Indenture and Section 4.4(a) of
the Sale and Servicing Agreement and in accordance with the priorities set forth therein for reimbursement of the Note Insurer. 
 ARTICLE
IV 
 FURTHER AGREEMENTS 
 Section 4.01. Effective Date; Term of the Insurance Agreement. This Insurance Agreement shall take effect on the Date of Issuance and shall remain in effect until the later of (a) such time as the Note Insurer is no longer
subject to a claim under the Policies and the Policies shall have been surrendered to the Note Insurer for cancellation and (b) all amounts payable to the Note Insurer by any COAF Company or from any other source under the Transaction Documents
and all amounts payable under the Notes have been paid in full; provided, however, that the provisions of Sections 3.03 and 3.04 hereof shall survive any termination of this Insurance Agreement. 
 Section 4.02. Further Assurances and Corrective Instruments. 
 (a) Excepting at such times as a default in payment under the Policies shall exist or shall have occurred, none of the COAF Companies or
the Indenture Trustee shall grant any waiver of rights under any of the Transaction Documents to which any of them 
  

 30 








 is a party without the prior written consent of the Note Insurer, and any such waiver without the written
consent of the Note Insurer shall be null and void and of no force or effect. 
 (b) To the extent permitted by law, the COAF
Companies agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as the Note Insurer may reasonably request and as may be
required in the Note Insurer’s reasonable judgment to effectuate the intention of or facilitate the performance of this Insurance Agreement. 
 Section 4.03. Obligations Absolute. 
 (a) The obligations of the COAF Companies hereunder shall be
absolute and unconditional and shall be paid or performed strictly in accordance with this Insurance Agreement under all circumstances irrespective of: 
 (i) any lack of validity or enforceability of, or any amendment or other modifications of, or waiver, with respect to any of the Transaction Documents, the Notes or the Policies; 
 (ii) any exchange or release of any other obligations hereunder; 
 (iii) the existence of any claim, setoff, defense, reduction, abatement or other right that any of the COAF Companies may have at any time
against the Note Insurer or any other Person; 
 (iv) any document presented in connection with the Policies proving to be
forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect; 
 (v) any payment by the Note Insurer under the Policies against presentation of a certificate or other document that does not strictly comply with terms of the Policies; or 
 (vi) any failure of any of the COAF Companies to receive the proceeds from the sale of the Notes. 
 (b) Each of the COAF Companies and any and all others who are now or may become liable for all or part of the obligations of any of the
COAF Companies under this Insurance Agreement agree to be bound by this Insurance Agreement and (i) to the extent permitted by law, waive and renounce any and all redemption and exemption rights and the benefit of all valuation and appraisement
privileges against the indebtedness and obligations evidenced by any Transaction Document or by any extension or renewal thereof; (ii) waive presentment and demand for payment, notices of nonpayment and of dishonor, protest of dishonor and
notice of protest; (iii) waive all notices in connection with the delivery and acceptance hereof and all other notices in connection with the performance, default or enforcement of any payment hereunder, except as required by the 
  

 31 








 Transaction Documents; (iv) waive all rights of abatement, diminution, postponement or deduction, or
any defense other than payment, or to any right of setoff or recoupment arising out of any breach under any of the Transaction Documents, by any party thereto or any beneficiary thereof, or out of any obligation at any time owing to any of the COAF
Companies; (v) agree that its liabilities hereunder shall, except as otherwise expressly provided in this Section 4.03, be unconditional and without regard to any setoff, counterclaim or the liability of any other Person for the payment
hereof; (vi) agree that any consent, waiver or forbearance hereunder with respect to an event shall operate only for such event and not for any subsequent event; (vii) consent to any and all extensions of time that may be granted by the
Note Insurer with respect to any payment hereunder or other provisions hereof and to the release of any security at any time given for any payment hereunder, or any part thereof, with or without substitution, and to the release of any Person or
entity liable for any such payment; and (viii) consent to the addition of any and all other makers, endorsers, guarantors and other obligors for any payment hereunder, and to the acceptance of any and all other security for any payment
hereunder, and agree that the addition of any such obligors or security shall not affect the liability of the parties hereto for any payment hereunder. 
 (c) Nothing herein shall be construed as prohibiting any COAF Company from pursuing any rights or remedies it may have against any other Person in a separate legal proceeding. 
 Section 4.04. Assignments; Reinsurance; Third-party Rights. 
 (a) This Insurance Agreement shall be a continuing obligation of the parties hereto and shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and permitted assigns. No COAF Company may assign its rights under this Insurance Agreement, or delegate any of its duties hereunder, without the prior written consent of the Note Insurer.

 (b) The Note Insurer shall have the right to give participations in its rights under this Insurance Agreement and to enter
into contracts of reinsurance with respect to the Policies upon such terms and conditions as the Note Insurer may in its discretion determine; provided, however, that no such participation or reinsurance agreement or arrangement shall relieve the
Note Insurer of any of its obligations hereunder or under the Policies. 
 (c) In addition, the Note Insurer shall be entitled
to assign or pledge to any bank or other lender providing liquidity or credit with respect to the Transaction or the obligations of the Note Insurer in connection therewith any rights of the Note Insurer under the Transaction Documents or with
respect to any real or personal property or other interests pledged to the Note Insurer, or in which the Note Insurer has a security interest, in connection with the Transaction. 
 (d) Except as provided herein with respect to participants and reinsurers, nothing in this Insurance Agreement shall confer any right,
remedy or claim, express or implied, upon any Person, including, particularly, any Owner, other than the Note Insurer 
  

 32 








 against any COAF Company, and all the terms, covenants, conditions, promises and agreements contained
herein shall be for the sole and exclusive benefit of the parties hereto and their successors and permitted assigns. Neither the Indenture Trustee, the Issuer nor any Owner shall have any right to payment from any Premiums paid or payable hereunder
or under the Indenture or from any other amounts paid by any COAF Company pursuant to Section 3.02, 3.03 or 3.04 hereof. 
 Section 4.05. Liability of the Note Insurer. Neither the Note Insurer nor any of its officers, directors or employees shall be liable or responsible for (a) the use that may be made of the Policies by the Indenture Trustee,
or the Swap Provider, as applicable, or for any acts or omissions of the Indenture Trustee in connection therewith; or (b) the validity, sufficiency, accuracy or genuineness of documents delivered to the Note Insurer (or its Fiscal Agent) in
connection with any claim under the Policies, or of any signatures thereon, even if such documents or signatures should in fact prove to be in any or all respects invalid, insufficient, fraudulent or forged (unless the Note Insurer shall have actual
knowledge thereof). In furtherance and not in limitation of the foregoing, the Note Insurer may accept documents that appear on their face to be in order, without responsibility for further investigation. 
 Section 4.06. Nonpetition Covenant. Each party hereto agrees that, prior to the date which is one year and one day after payment in full of
all obligations of each Bankruptcy Remote Party in respect of all securities issued by any Bankruptcy Remote Party involved in this Transaction (a) such party shall not authorize such Bankruptcy Remote Party to commence a voluntary winding-up
or other voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to such Bankruptcy Remote Party or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect in any
jurisdiction or seeking the appointment of an administrator, a trustee, receiver, liquidator, custodian or other similar official with respect to such Bankruptcy Remote Party or any substantial part of its property or to consent to any such relief
or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against such Bankruptcy Remote Party, or to make a general assignment for the benefit of, its creditors generally, any party
hereto or any other creditor of such Bankruptcy Remote Party, and (b) of the parties hereto shall commence or join with any other Person in commencing any proceeding against such Bankruptcy Remote Party under any bankruptcy, reorganization,
liquidation or insolvency law or statute now or hereafter in effect in any jurisdiction. This Section shall survive the termination of this Agreement. 
 Section 4.07. Parties To Join in Enforcement Action. 
 (a) To the extent
necessary to enforce any right of the Note Insurer in or remedy of the Note Insurer under any Receivable or related asset, the Indenture Trustee, the Issuer and each COAF Company agree to join in any action initiated by the Indenture Trustee or the
Note Insurer for the protection of such right or exercise of such remedy. 
 (b) In the event of any court proceeding
(x) with respect to which a COAF Company is a party (including, without limitation, an insolvency or bankruptcy proceeding in respect of any COAF Company) which affects the Trust Estate, the Policies or the obligations of the Note Insurer under
the Transaction Documents, and (y) with 
  

 33 








 respect to which such COAF Company fails to defend or answer, the Note Insurer shall have the right to
direct, assume or otherwise participate in the defense thereof. In such event, the Note Insurer shall, following written notice to the Indenture Trustee, have the exclusive-right to determine, in its sole discretion, the actions necessary to
preserve and protect the Trust Estate. All costs and expenses of the Note Insurer in connection with such action, proceeding or investigation, (including, without limitation, any judgment or settlement entered into or paid by the Note Insurer),
shall be included in the Reimbursement Obligations. 
 (c) The Indenture Trustee shall cooperate with, and take such action as
directed by, the Note Insurer, including (without limitation) entering into such agreements and settlements as the Note Insurer in its sole discretion shall direct with respect to such court proceeding. The Indenture Trustee shall not be liable to
the Note Insurer for any such action that conforms to the direction of the Note Insurer. The Indenture Trustee’s reasonable out-of-pocket costs and expenses (including attorneys’ fees and expenses) with respect to any such action shall be
reimbursed pursuant to and in accordance with the Indenture and the priorities set forth in Section 4.4(a) of the Sale and Servicing Agreement; provided, however, that if such costs and expenses are not so reimbursed on the Payment Date
immediately following the date incurred, then the Note Insurer shall reimburse the Indenture Trustee for such costs and expenses within 60 days of such nonpayment. 
 (d) The Indenture Trustee hereby agrees to provide to the Note Insurer prompt written notice of any action, proceeding or investigation
that names the Owner Trustee or the Issuer as a party or that could adversely affect the Trust Estate or the rights or obligations of the Note Insurer hereunder or under the Policies or the other Transaction Documents, including (without limitation)
any insolvency or bankruptcy proceeding in respect of the Servicer, COAF, the Seller or any affiliate thereof. 
 (e)
Notwithstanding anything contained herein or in any of the other Transaction Documents to the contrary, the Indenture Trustee shall not, without the Note Insurer’s prior written consent or unless directed by the Note Insurer, undertake or join
any litigation or agree to any settlement of any action, proceeding or investigation affecting the Owner Trustee, the Issuer or the Trust Estate or the rights or obligations of the Note Insurer hereunder or under the Policies or the other
Transaction Documents. 
 Section 4.08. Regulation AB Reports. The Note Insurer agrees that: 
 (i) the Note Insurer Financial Information containing the financial information required by Item 1114(b)(2) of Regulation AB
included in documents filed by the Note Insurer with the Commission pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act (the “Note Insurer Exchange Act Reports”), may be incorporated by reference by the
Seller or the Issuer into the Prospectus or any Exchange Act Report to the extent required under Regulation AB or Item 7 on Form 10-D, 
 (ii) only until the Seller and the Issuer would become eligible to suspend filing of periodic reports, assuming their compliance in good faith with the covenant in 
  

 34 








 Section 2.02(o) hereof, the Note Insurer will (or during the continuance of a Positive Guidance
Condition (as defined below), use its best efforts to) continue to file Note Insurer Exchange Act Reports on a timely basis (it being acknowledged that any such filings so made pursuant to any extensions granted by the Commission or otherwise
in accordance with the Securities Act and the Rules and Regulations thereunder will be considered filed “timely”) for so long as the Note Insurer is required to file them pursuant to the Securities Exchange Act or, to the extent the Note
Insurer is no longer required to file them pursuant to the Securities Exchange Act, the Note Insurer will (or during the continuance of a Positive Guidance Condition (as defined below), use its best efforts to) timely furnish documents containing
the financial information required by Item 1114(b)(2) of Regulation AB to the Issuer and, 
 (iii) on not less than five
(5) Business Days’ notice, it will use commercially reasonable efforts to cause its accountants, if required by the Seller or the Issuer in order to comply with the Securities Exchange Act, to issue their consent to the incorporation by
reference of any Note Insurer Exchange Act Report into the Prospectus or any Exchange Act Report; 
 provided, however, that the Note
Insurer’s liability, in the case of a breach of this Section 4.08, will be limited to (a) the actual damages incurred by the Sponsor and the Seller (or the Capital One Indemnified Parties in the case of the indemnity provided in
Section 3.04(c)(ii) of this Agreement), and (b) lost profits and other consequential damages, in each case as a direct result of a determination by the Commission that the Seller is no longer eligible to file registration statements on
Form S-3, such determination being based solely on the Note Insurer’s breach of this Section 4.08, and the Note Insurer’s liability for the damages described in clause (b) above shall in no event exceed as of any date the sum of
(x) the aggregate amount of premium received by the Note Insurer in connection with the transactions described by this Agreement as of such date and (y) as of such date and without duplication of (x) above the aggregate amount of
premium expected to be received by the Note Insurer assuming that the Loans pay down using a 1.7% ABS prepayment speed (as described in the Prospectus Supplement) and further assuming that the clean up call is exercised by the Servicer at its
earliest opportunity. It is understood and agreed that, to the extent any consent letter of the Note Insurer’s accountants is required by the Seller or the Issuer in connection with such filing, the fees and expenses payable in respect thereof
shall be paid by the Servicer upon demand. 
 As used in this Section 4.08, the term “Positive Guidance Condition” means that either
(a) the Commission has not issued any Interpretive Guidance or (b) the Commission has issued Interpretive Guidance and the Note Insurer has delivered an Opinion of Counsel addressed to COAF, the Seller and the Issuer in form and substance
satisfactory to COAF, the Seller, the Issuer and their counsel, to the effect that under the Interpretive Guidance, the failure of a credit enhancement provider to timely file or deliver financial information under Item 1114(b)(2) of Regulation
AB would not constitute a breach by COAF, the Seller or the Issuer of its obligations under Item 1114(b)(2) of Regulation AB or Form 10-D and would not cause COAF, the Seller or the Issuer to fail to satisfy the eligibility requirements for the
use of Form S-3 as described in General Instruction I. to Form S-3. The term “Interpretive Guidance” means any release, no-action letter, telephone interpretation or other publicly available guidance issued by the 
  

 35 








 Commission which addresses the issue of a sponsor’s, depositor’s or issuing entity’s responsibility for
the timely delivery of financial information under Item 1114(b)(2) of Regulation AB. The term “Opinion of Counsel” means the opinion of Kutak Rock LLP or another nationally recognized securitization counsel to MBIA reasonably
acceptable to COAF. 
 ARTICLE V 
 DEFAULTS; REMEDIES 
 Section 5.01. Defaults. The occurrence of any of the following events shall constitute an
Event of Default hereunder: 
 (a) An Insurance Agreement Event of Default shall occur and be continuing; 
 (b) (i) Any COAF Company shall fail to pay when due any amount payable by such COAF Company hereunder and such failure has continued
for a period of at least five (5) Business Days upon receipt of notice by the applicable COAF Company from the Note Insurer, or if specified in the applicable Transaction Document, the applicable grace period set forth therein, or (ii) a
legislative body has enacted any law that declares or a court of competent jurisdiction shall find or rule that any of the Transaction Documents are not valid and binding on any COAF Company; 
 (c) A decree or order of a court or agency or supervisory authority having jurisdiction in the premises in an involuntary case under any
present or future federal or state bankruptcy, insolvency or similar law or the appointment of a conservator or receiver or liquidator or other similar official in any insolvency, readjustment of debt, marshalling of assets and liabilities or
similar proceedings, or for the winding-up or liquidation of its affairs, shall have been entered against any COAF Company and such decree or order shall have remained in force undischarged or unstayed for a period of 90 consecutive days;

 (d) Any COAF Company shall consent to the appointment of a conservator or receiver or liquidator or other similar official
in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings of or relating to any COAF Company or of or relating to all or substantially all of the property of any of them; or 
 (e) Any COAF Company shall admit in writing its inability to pay its debts generally as they become due, file a petition to take advantage
of or otherwise voluntarily commence a case or proceeding under any applicable bankruptcy, insolvency, reorganization or other similar statute, make an assignment for the benefit of its creditors or voluntarily suspend payment of its obligations.

  

 36 








 Section 5.02. Remedies; No Remedy Exclusive. 
 (a) Upon the occurrence of an Event of Default, the Note Insurer may exercise any one or more of the rights and remedies set forth below:

 (i) declare all indebtedness of every type or description then owed by any COAF Company to the Note Insurer pursuant to the
Transaction Documents to be immediately due and payable, and the same shall thereupon be immediately due and payable; provided, however, that any such payment by the Seller or the Issuer shall be paid in accordance with Section 4.4 of the Sale
and Servicing Agreement; 
 (ii) exercise any rights and remedies under the Transaction Documents in accordance with the terms
of the Transaction Documents or direct the Indenture Trustee to exercise such remedies in accordance with the terms of the Transaction Documents; or 
 (iii) take whatever action at law or in equity as may appear necessary or desirable in its judgment to collect the amounts then due under this Insurance Agreement or the Transaction Documents or to enforce performance
and observance of any obligation, agreement or covenant of any COAF Company under this Insurance Agreement or the Transaction Documents. 
 (b) Unless otherwise expressly provided, no remedy herein conferred upon or reserved is intended to be exclusive of any other available remedy, but each remedy shall be cumulative and shall be in addition to other
remedies given under this Insurance Agreement, the Transaction Documents or existing at law or in equity. No delay or omission to exercise any right or power accruing under this Insurance Agreement or the Transaction Documents upon the happening of
any event set forth in Section 5.01 hereof shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to
entitle the Note Insurer to exercise any remedy reserved to the Note Insurer in this Article, it shall not be necessary to give any notice, other than such notice as may be required in this Article. 
 (c) Each party to this Insurance Agreement hereby agrees that, in addition to any other rights or remedies existing in its favor, it shall
be entitled to specific performance and/or injunctive relief in order to enforce any of its rights or any obligation owed to it under the Transaction Documents. 
 Section 5.03. Waivers. 
 (a) No failure by the Note Insurer to exercise, and no
delay by the Note Insurer in exercising, any right hereunder shall operate as a waiver thereof. The exercise by the Note Insurer of any right hereunder shall not preclude the exercise of any other right, and the remedies provided herein to the Note
Insurer are declared in every case to be cumulative and not exclusive of any remedies provided by law or equity. 
 (b) The
Note Insurer shall have the right, to be exercised in its complete discretion, to waive any Event of Default hereunder, by a writing setting forth the terms, conditions and extent of such waiver signed by the Note Insurer and delivered to the
Servicer. Unless such writing expressly provides to the contrary, any waiver so granted 
  

 37 








 shall extend only to the specific event or occurrence which gave rise to the Event of Default so waived
and not to any other similar event or occurrence which occurs subsequent to the date of such waiver. 
 ARTICLE VI 
 MISCELLANEOUS 
 Section 6.01.
Amendments, Etc. This Insurance Agreement may be amended, modified or terminated only by written instrument or written instruments signed by the parties hereto. The Servicer agrees to promptly provide a copy of any amendment to this Insurance
Agreement to the Indenture Trustee and the Rating Agencies. No act or course of dealing shall be deemed to constitute an amendment, modification or termination hereof. 
 Section 6.02. Notices. All demands, notices and other communications to be given hereunder shall be in writing (except as otherwise specifically provided herein) and shall be mailed by registered mail or
personally delivered or telecopied to the recipient as follows: 
  

					
	 To the Note Insurer:
	  	MBIA Insurance Corporation
		  	113 King Street
		  	Armonk, NY 10504
		  	Attention: Insured Portfolio Management - Structured
                    Finance (IPM-SF) (Capital One 2006-B)
		  	Facsimile: (914) 765-3810
		  	Confirmation: (914) 765-3781
		
	 To the Servicer:
	  	Capital One Auto Finance, Inc.
		  	1680 Capital One Drive
		  	McLean, VA 22102
		  	Attention: Director of Securitization
		  	Facsimile: (703) 720-2121
		  	Confirmation: (703) 720-1000
		
	 With a copy to:
	  	Capital One Auto Finance, Inc.
		  	1680 Capital One Drive
		  	McLean, VA 22102
		  	Attention: Legal Department
		  	Facsimile: (703) 720-2121
		  	Confirmation: (703) 875-1000
		
	 To COAF:
	  	Capital One Auto Finance, Inc.
		  	1680 Capital One Drive
		  	McLean, VA 22102
		  	Attention: Director of Securitization
		  	Facsimile: (703) 720-2121
		  	Confirmation: (703) 720-1000

  

 38 









					
	With a copy to:	 	Capital One Auto Finance, Inc.
		 	1680 Capital One Drive
		 	McLean, VA 22102
		 	Attention: Legal Department
		 	Facsimile: (703) 720-2121
		 	Confirmation: (703) 720-1000
		
	To the Seller:	 	Capital One Auto Receivables, LLC
		 	140 E. Shore Drive, Room 1052-D
		 	Glen Allen, VA 23059
		 	Attention: Capital Markets
		 	Facsimile: (804) 290-6666
		 	Confirmation: (804) 290-6736
		
	With a copy to:	 	Capital One Auto Receivables, LLC
		 	1680 Capital One Drive
		 	McLean, VA 22102
		 	Attention: Legal Department
		 	Facsimile: (703) 720-2121
		 	Confirmation: (703) 720-1000
		
	To the Indenture Trustee:	 	JPMorgan Chase Bank, N.A.
		 	6th Floor
		 	4 New York Plaza,
		 	New York, NY 10004-2413
		 	 Attention: Worldwide Securities Services/Structured
 Finance Services-Capital One Auto Finance 2006-B

		 	Facsimile: (212) 623-5932
		 	Confirmation: (212) 623-5379
		
	To the Issuer:	 	Capital One Auto Finance Trust 2006-B
		 	c/o Wilmington Trust Company
		 	1100 North Market Street
		 	Wilmington, DE 19890
		 	Attention:	 	Corporate Trust Administration—
		 		 	Capital One Auto Finance Trust 2006-B
		 	Facsimile: (302) 636-4140
		 	Confirmation: (302) 636-6188
		
	To the Underwriters:	 	
		
		 	Deutsche Bank Securities Inc., as
		 	Representatives of the several Underwriters
		 	60 Wall Street, 19th Floor
		 	New York, NY 10005
		 	Attention: Rick Koppenhaver
		 	Facsimile: (212) 797-2030
		 	 Confirmation: (212) 250-3177


  

 39 









			
		 	 Barclays Capital Inc., as

		 	Representatives of the several Underwriters
		 	200 Park Avenue, 5th Floor
		 	New York, NY 10166
		 	Attention: Jon-Claude Zucconi
		 	Facsimile: (212) 412-6846
		 	Confirmation: (212) 412-7646

 A party may specify an additional or different address or addresses by writing mailed or delivered
to the other parties as aforesaid. All such notices and other communications shall be effective upon receipt. 
 Section 6.03.
Severability. In the event that any provision of this Insurance Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, the parties hereto agree that such holding shall not invalidate or render unenforceable any
other provision hereof. The parties hereto further agree that the holding by any court of competent jurisdiction that any remedy pursued by any party hereto is unavailable or unenforceable shall not affect in any way the ability of such party to
pursue any other remedy available to it. 
 Section 6.04. Governing Law. This Insurance Agreement shall be governed by and
construed in accordance with the laws of the State of New York. 
 Section 6.05. Consent to Jurisdiction. 
 (a) The parties hereto hereby irrevocably submit to the jurisdiction of the United States District Court for the Southern District of
New York and any court in the State of New York located in the City and County of New York, and any appellate court from any thereof, in any action, suit or proceeding brought against it and to or in connection with any of the
Transaction Documents or the transactions contemplated thereunder or for recognition or enforcement of any judgment, and the parties hereto hereby irrevocably and unconditionally agree that all claims in respect of any such action or proceeding may
be heard or determined in such New York state court or, to the extent permitted by taw, in such federal court. The parties hereto agree that a final judgment in any such action, suit or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by law. To the extent permitted by applicable law, the parties hereto hereby waive and agree not to assert by way of motion, as a defense or otherwise in any such suit,
action or proceeding, any claim that it is not personally subject to the jurisdiction of such courts, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that the
related documents or the subject matter thereof may not be litigated in or by such courts. 
 (b) To the extent permitted by
applicable law, the parties hereto shall not seek and hereby waive the right to any review of the judgment of any such court by any court of any other nation or jurisdiction which may be called upon to grant an enforcement of such judgment.

  

 40 








 (c) Nothing contained in this Insurance Agreement shall limit or affect the Note
Insurer’s right to serve process in any other manner permitted by law or to start legal proceedings relating to any of the Transaction Documents against any COAF Company or its or their property in the courts of any jurisdiction. 
 Section 6.06. Consent of the Note Insurer. In the event that the consent of the Note Insurer is required under any of the Transaction
Documents, the determination whether to grant or withhold such consent shall be made by the Note Insurer in its sole discretion without any implied duty towards any other Person, except as otherwise expressly provided therein. 
 Section 6.07. Counterparts. This Insurance Agreement may be executed in counterparts by the parties hereto, and all such counterparts shall
constitute one and the same instrument. 
 Section 6.08. Headings. The headings of Articles and Sections and the Table of
Contents contained in this Insurance Agreement are provided for convenience only. They form no part of this Insurance Agreement and shall not affect its construction or interpretation. Unless otherwise indicated, all references to Articles and
Sections in this Insurance Agreement refer to the corresponding Articles and Sections of this Insurance Agreement. 
 Section 6.09.
Trial by Jury Waived. Each party hereto hereby waives, to the fullest extent permitted by law, any right to a trial by jury in respect of any litigation arising directly or indirectly out of, under or in connection with any of the Transaction
Documents or any of the transactions contemplated thereunder. Each party hereto (a) certifies that no representative, agent or attorney of any party hereto has represented, expressly or otherwise, that it would not, in the event of litigation,
seek to enforce the foregoing waiver and (b) acknowledges that it has been induced to enter into the Transaction Documents to which it is a party by, among other things, this waiver. 
 Section 6.10. Limited Liability. No recourse under any Transaction Document shall be had against, and no personal liability shall attach to,
any officer, employee, director, affiliate or shareholder of any party hereto, as such, by the enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute or otherwise in respect of any of the Transaction
Documents, the Notes or the Policies, it being expressly agreed and understood that each Transaction Document is solely a corporate obligation of each party hereto, and that any and all personal liability, either at common law or in equity, or by
statute or constitution, of every such officer, employee, director, affiliate or shareholder for breaches by any party hereto of any obligations under any Transaction Document is hereby expressly waived as a condition of and in consideration for the
execution and delivery of this Insurance Agreement. 
 Section 6.11. Entire Agreement. This Insurance Agreement and the Policies
set forth the entire agreement between the parties with respect to the subject matter thereof, and this Insurance Agreement supersedes and replaces any agreement or understanding that may have existed between the parties prior to the date hereof in
respect of such subject matter. 
  

 41 








 Section 6.12. Limitation of Liability. It is expressly understood and agreed by and among the
parties hereto (a) that this Insurance Agreement is executed and delivered by Wilmington Trust Company, not in its individual capacity but solely as Owner Trustee under the Amended and Restated Trust Agreement dated as of August 4, 2006
with Capital One Auto Receivables, LLC (the “Trust Agreement”) in the exercise of the power and authority conferred and vested in it as such Owner Trustee, (b) each of the representations, undertakings and agreements made herein by
the Issuer are not personal representations, undertakings and agreements of Wilmington Trust Company, but are binding only on the Issuer, (c) nothing contained herein shall be construed as creating any liability on Wilmington Trust Company,
individual or personally, to perform any covenant of the Issuer either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties hereto and by any person claiming by, through or under any such party,
and (d) under no circumstances shall Wilmington Trust Company be personally liable for the payment of any indebtedness or expense of the Issuer or be liable for the breach or failure of any obligation, representation, warranty or covenant made
or undertaken by the Issuer under this Insurance Agreement. 
 [Remainder of page intentionally left blank] 
  

 42 








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

			
	 MBIA INSURANCE CORPORATION,
 as
Note Insurer


		
	By	 	 /s/ Stephanie Taylor Ciavarello

	Name	 	Stephanie Taylor Ciavarello
	Title	 	Assistant Secretary
	
	 CAPITAL ONE AUTO FINANCE, INC.,
 as Servicer
and in its capacity as seller under the
 Purchase Agreement

		
	By	 	 /s/ Albert A. Ciafre

	Name	 	Albert A. Ciafre
	Title	 	Assistant Vice President
	
	 CAPITAL ONE AUTO RECEIVABLES, LLC,
 as
Seller

		
	By	 	 /s/ Richard Johns

	Name	 	Richard Johns
	Title	 	Assistant Vice President
	
	 CAPITAL ONE AUTO FINANCE TRUST
 2006-B

		
	By	 	 WILMINGTON TRUST COMPANY, not
 in its individual capacity
but solely in its
 capacity as Owner Trustee

		
	By	 	 /s/ W. Chris Sponenberg

	Name	 	W. Chris Sponenberg
	Title	 	Vice President


 Capital One Auto Finance Trust 2006-B 
 Insurance Agreement Signature Page 








			
	 JPMORGAN CHASE BANK, N.A.,
 not in its individual capacity but solely as
 Indenture Trustee


		
	 By
	 	 /s/     Mark W. McDermott

	 Name
	 	Mark W. McDermott
	Title	 	Vice President


 Capital One Auto Finance Trust 2006-B 
 Insurance Agreement Signature Page 
  

 2