THE
CONTRACTS TO THE INDENTURE TRUSTEE, THAT EACH CONTRACT AND THE SALE OF THE
RELATED FINANCED VEHICLE COMPLIED AT THE TIME IT WAS ORIGINATED OR MADE AND ON
THE CUTOFF DATE, AS THE CASE MAY BE, DOES COMPLY IN ALL MATERIAL RESPECTS WITH
ALL REQUIREMENTS OF APPLICABLE FEDERAL, STATE AND LOCAL LAWS, AND REGULATIONS
THEREUNDER.
(B)
THE SERVICER COVENANTS THAT IN THE EVENT THAT THE SERVICER
REALIZES UPON ANY CONTRACT, THE METHODS UTILIZED BY THE SERVICER TO REALIZE UPON
SUCH CONTRACT OR OTHERWISE ENFORCE ANY PROVISIONS OF THE CONTRACT, WILL NOT
SUBJECT THE SERVICER, THE ISSUER, THE NOTEHOLDERS, THE INSURER OR THE INDENTURE
TRUSTEE TO LIABILITY UNDER ANY FEDERAL, STATE OR LOCAL LAW, AND THAT SUCH
ENFORCEMENT BY THE SERVICER WILL BE CONDUCTED IN ACCORDANCE WITH THE PROVISIONS
OF THIS SERVICING AGREEMENT, THE STANDARD OF CARE SET FORTH IN SECTION 2.18
HEREOF AND IN THE COLLECTION POLICY.
2.18.
STANDARD OF CARE. IN PERFORMING ITS DUTIES AND OBLIGATIONS
HEREUNDER AND IN ADMINISTERING AND ENFORCING THE INSURANCE POLICIES RELATING TO
THE CONTRACTS PURSUANT TO THIS SERVICING AGREEMENT, THE SERVICER WILL COMPLY
WITH ALL APPLICABLE STATE AND FEDERAL LAWS AND SHALL SERVICE AND ADMINISTER THE
CONTRACTS BY EMPLOYING SUCH PROCEDURES (INCLUDING COLLECTION
16
PROCEDURES) AND DEGREE OF CARE, IN EACH CASE CONSISTENT WITH PRUDENT INDUSTRY
STANDARDS, AS ARE CUSTOMARILY EMPLOYED BY THE SERVICER IN SERVICING AND
ADMINISTERING MOTOR VEHICLE RETAIL INSTALLMENT SALES CONTRACTS AND NOTES OWNED
OR SERVICED BY THE SERVICER COMPARABLE TO THE CONTRACTS. IN PERFORMING SUCH
DUTIES, SO LONG AS FIRST INVESTORS SERVICING CORPORATION IS THE SERVICER (I) IT
SHALL COMPLY WITH THE COLLECTION POLICY, AND (II) IT SHALL NOT MAKE ANY MATERIAL
AMENDMENT TO SUCH COLLECTION POLICY WITHOUT THE PRIOR WRITTEN CONSENT OF THE
INSURER (PROVIDED THAT NO INSURER DEFAULT SHALL HAVE OCCURRED AND BE CONTINUING)
WHICH CONSENT SHALL NOT BE UNREASONABLY WITHHELD; PROVIDED, HOWEVER, THAT
NOTWITHSTANDING THE FOREGOING, THE SERVICER SHALL NOT, EXCEPT PURSUANT TO A
JUDICIAL ORDER FROM A COURT OF COMPETENT JURISDICTION, OR AS OTHERWISE REQUIRED
BY APPLICABLE LAW OR REGULATION, RELEASE OR WAIVE THE RIGHT TO COLLECT THE
UNPAID BALANCE ON ANY CONTRACT. IN PERFORMING ITS DUTIES AND OBLIGATIONS
HEREUNDER, THE SERVICER SHALL COMPLY WITH ALL APPLICABLE FEDERAL AND STATE LAWS
AND REGULATIONS, SHALL MAINTAIN ALL STATE AND FEDERAL LICENSES AND FRANCHISES
NECESSARY FOR IT TO PERFORM ITS SERVICING RESPONSIBILITIES HEREUNDER, AND SHALL
NOT IMPAIR THE RIGHTS OF THE ISSUER, THE INSURER OR THE INDENTURE TRUSTEE ON
BEHALF OF THE NOTEHOLDERS IN THE COLLATERAL.
2.19.
RECORDS. THE SERVICER SHALL MAINTAIN OR CAUSE TO BE MAINTAINED SUCH
BOOKS OF ACCOUNT AND OTHER RECORDS AS WILL ENABLE THE ISSUER AND THE INSURER TO
DETERMINE THE STATUS OF EACH CONTRACT AND ANY INSURANCE POLICY RELATING THERETO.
2.20.
INSPECTION.
(A)
AT ALL TIMES DURING THE TERM HEREOF, THE SERVICER SHALL AFFORD THE
ISSUER, THE INSURER, THE BACK-UP SERVICER AND THE INDENTURE TRUSTEE AND THEIR
AUTHORIZED AGENTS, UPON THREE BUSINESS DAYS' PRIOR WRITTEN NOTICE, REASONABLE
ACCESS DURING NORMAL BUSINESS HOURS TO THE SERVICER'S RECORDS AND FILES RELATING
TO THE CONTRACTS