Document:

Insurance Agreement

 Exhibit 10.2 
 EXECUTION COPY 
  

 MBIA INSURANCE CORPORATION, 
 as Insurer 
 UPFC AUTO RECEIVABLES TRUST 2007-A, 
 as Issuer 
 UNITED AUTO CREDIT CORPORATION, 
 Individually
and as Servicer 
 UPFC AUTO FINANCING CORPORATION, 
 as Seller 
 and 
 DEUTSCHE BANK TRUST COMPANY AMERICAS, 
 as Trustee, as Trust Collateral Agent, as Collateral Agent and as
Backup Servicer 
 INSURANCE AGREEMENT 
 UPFC Auto Receivables Trust 2007-A 
 Class A-1 Notes, Class A-2 Notes 
 and Class A-3 Notes 
 Dated as of June 14, 2007 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ARTICLE I
	DEFINITIONS	  	1
	
	ARTICLE II
	REPRESENTATIONS, WARRANTIES AND COVENANTS
			
	Section 2.01.	  	Representation and Warranties of UACC, the Servicer and the Seller	  	6
	Section 2.02.	  	Affirmative Covenants of the Servicer, UACC and the Seller	  	10
	Section 2.03.	  	Negative Covenants of UACC, the Servicer and the Seller	  	16
	Section 2.04.	  	Representations and Warranties of the Issuer.	  	17
	Section 2.05.	  	Affirmative Covenants of the Issuer.	  	20
	Section 2.06.	  	Negative Covenants of the Issuer.	  	22
	Section 2.07.	  	[Reserved]	  	23
	
	ARTICLE III
	THE POLICY; REIMBURSEMENT
			
	Section 3.01.	  	Issuance of the Policy	  	23
	Section 3.02.	  	Payment of Fees and Premium	  	26
	Section 3.03.	  	Reimbursement and Additional Payment Obligation	  	26
	Section 3.04.	  	Indemnification; Limitation of Liability	  	28
	Section 3.05.	  	Payment Procedure	  	30
	
	ARTICLE IV
	FURTHER AGREEMENTS
			
	Section 4.01.	  	Effective Date; Term of the Insurance Agreement	  	30
	Section 4.02.	  	Further Assurances and Corrective Instruments	  	31
	Section 4.03.	  	Obligations Absolute	  	31
	Section 4.04.	  	Assignments; Reinsurance; Third-party Rights	  	33
	Section 4.05.	  	Liability of the Insurer	  	33
	Section 4.06.	  	Parties Will Not Institute Insolvency Proceedings	  	34
	Section 4.07.	  	UACC, the Servicer, the Seller, the Issuer, the Trustee, the Trust Collateral Agent, the Collateral Agent and the Backup Servicer To Join in Enforcement Action	  	34
	Section 4.08.	  	Subrogation	  	34
	Section 4.09.	  	Insurer’s Rights Regarding Actions, Proceedings or Investigations	  	34
	Section 4.10.	  	Specified Impaired Amount Report	  	36
	Section 4.11.	  	Insurer Financial Statements	  	36
	
	ARTICLE V
	DEFAULTS; REMEDIES
			
	Section 5.01.	  	Defaults	  	36
	Section 5.02.	  	Remedies; No Remedy Exclusive	  	39

					
	Section 5.03.	  	Waivers	  	39
	
	ARTICLE VI
	MISCELLANEOUS
			
	Section 6.01.	  	Amendments, Etc	  	40
	Section 6.02.	  	Notices	  	40
	Section 6.03.	  	Severability	  	41
	Section 6.04.	  	Governing Law	  	41
	Section 6.05.	  	Consent to Jurisdiction	  	41
	Section 6.06.	  	Consent of the Insurer	  	42
	Section 6.07.	  	Counterparts	  	42
	Section 6.08.	  	Headings	  	42
	Section 6.09.	  	Trial by Jury Waived	  	42
	Section 6.10.	  	Limited Liability	  	43
	Section 6.11.	  	Entire Agreement	  	43
	[Remainder of page intentionally blank; signature page follows]	  	43

  

 ii 

 INSURANCE AGREEMENT 
 INSURANCE AGREEMENT (this “Insurance Agreement”), dated as of June 14, 2007 by and among UPFC AUTO RECEIVABLES TRUST 2007-A, as Issuer (the “Issuer”), UPFC AUTO FINANCING
CORPORATION, as Seller (the “Seller”), UNITED AUTO CREDIT CORPORATION, individually (“UACC”) and in its capacity as Servicer under the Sale and Servicing Agreement described below (together with its permitted
successors and assigns, the “Servicer”), MBIA INSURANCE CORPORATION, as Insurer (the “Insurer”), and DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee (the “Trustee”), as Trust Collateral Agent (the
“Trust Collateral Agent”), as Collateral Agent (the “Collateral Agent”) and as Backup Servicer (the “Backup Servicer”). 
 WHEREAS, the Indenture dated as of June 1, 2007 relating to UPFC Auto Receivables Trust 2007-A Class A-1 Notes, Class A-2 Notes and Class A-3 Notes, (the “Obligations”), between the
Issuer, the Trustee and the Trust Collateral Agent (the “Indenture”) provides for, among other things, the issuance of asset backed notes representing debt obligations secured by the collateral pledged thereunder and the Insurer has agreed
to issue its Note Guaranty Insurance Policy (the “Policy”) that guarantees certain payments on the Obligations; and 
 WHEREAS, the
Insurer shall be paid an insurance premium pursuant to the Sale and Servicing Agreement and the details of such premium are set forth herein; and 
 WHEREAS, UACC, the Servicer, the Backup Servicer, the Trustee, the Collateral Agent, the Trust Collateral Agent, the Seller and the Issuer have undertaken certain obligations in consideration of the Insurer’s issuance of the Policy;

 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 Sale and Servicing Agreement or the Indenture, as applicable. 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. 
 “Bankruptcy Code” means 11 U.S.C. §§ 101, et seq., as amended. 

 “Business Day” means any day other than (a) a Saturday or a Sunday or (b) a
day on which banking institutions in the states of California, Texas, Delaware or New York are authorized or obligated by law or executive order to be closed. 
 “Capitalized Lease” means all monetary obligations of a Person under any lease or similar arrangement of such Person which, in accordance with GAAP, should be capitalized or classified as capitalized
leases on the balance sheet of such Person and, for purposes of this Agreement, the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP. 
 “Change of Control” means (i) a transfer of ownership or grant by UPFC or any of its Affiliates of any membership or ownership
interest in UPFC or any of its Affiliates or amendment or change in the organizational documents or operating agreements of UPFC or any of its Affiliates as a result of which Guillermo Bron ceases to own, hold or Control more than 25 percent of the
voting interests in UPFC or any of its Affiliates or (ii) United PanAm Financial Corp. ceases to be a publicly traded company. 
 “Code” means the Internal Revenue Code of 1986, including, unless the context otherwise requires, the rules and regulations thereunder, as amended from time to time. 
 “Collateral Agent” means Deutsche Bank Trust Company Americas, a national banking association, as collateral agent under the Spread
Account Agreement, and any successor to the Collateral Agent under the Spread Account Agreement. 
 “Commission” means the
Securities and Exchange Commission. 
 “Control” or “Controlled By” shall mean the possession, direct or indirect,
of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities or membership interest, by contract or otherwise, and, without limiting the generality of the foregoing, any
Person who, individually or with his immediate family or any other Affiliate, directly or indirectly owns or holds 25 percent or more of the voting interest or equity interest in any other Person shall be deemed to Control such other Person.

 “Date of Issuance” means the date on which the Policy is 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 Insurance
Agreement Event of Default. 
 “EBITDA” for a twelve month period of determination shall mean the sum of UPFC’s pretax
earnings from continuing operations, Interest Expense and depreciation, depletion, and amortization of tangible and intangible assets, before extraordinary gains, minority interests, and miscellaneous gains and losses, in each case for such period,
computed, calculated and determined on a consolidated basis for UPFC in accordance with GAAP. 
 “Financial Statements”
means, with respect to UPFC, the consolidated balance sheets and the statements of income, retained earnings and cash flows and the notes thereto which have been provided to the Insurer. 
  

 2 

 “Fiscal Agent” means the Fiscal Agent, if any, designated pursuant to the terms of the
Policy. 
 “GAAP” means generally accepted accounting principles, including principles of consolidation, applied on a
consistent basis. 
 “Indebtedness” means at any time and with respect to any Person (and without duplication) all items of
indebtedness, obligation or liability of such Person, whether matured or unmatured, liquidated or unliquidated, direct or contingent, joint or several, including, without limitation or duplication: (a) all obligations of such Person for
borrowed money, (b) all indebtedness secured by Liens on property owned by such Person, whether or not the Indebtedness secured thereby should have been assumed or guaranteed by such Person, (c) guaranties and endorsements (other than for
purposes of collection in the ordinary course of business) by such Person and other contingent obligations of such Person in respect of, or to purchase or otherwise acquire, indebtedness or obligations of others, (d) all Capitalized Leases of such
Person, (e) all indebtedness and obligations of others guaranteed by such Person, (f) all obligations of such Person to pay a specified purchase price for goods or services, whether or not delivered or accepted (i.e., take-or-pay and
similar obligations), (g) all obligations of such Person under any interest rate swap program or any similar agreement, arrangement or undertaking relating to fluctuations in interest rate, (h) all obligations of such Person in respect to
letters of credit, under acceptance facilities, in respect of unfunded vested benefits under any Plan, in respect of foreign currency exchange agreements and in respect of deferred compensation agreements or arrangements, (i) all obligations of
such Person to pay the deferred purchase price of property or services and (j) all obligations of such Person to advance funds to, or purchase or lease assets, property or services from, any other Person in order to maintain the financial
condition of such Person. 
 “Indemnification Agreement” means the Indemnification Agreement dated as of June 5, 2007
among the Insurer, UACC and Deutsche Bank Securities. 
 “Indenture” means the Indenture dated as of June 1, 2007 among
the Issuer, the Trust Collateral Agent and the Trustee as the same may be amended or supplemented from time to time in accordance with the terms thereof. 
 “Insurance Agreement Event of Default” means any event of default specified in Section 5.01 hereof. 
 “Interest Expense” for a twelve month period of determination shall mean UPFC’s total gross interest expense during such period (excluding interest income), and shall in any event include,
without limitation, (i) interest expensed (whether or not paid) on all Indebtedness of each of the Servicer and UPFC, (ii) the amortization of debt discounts, (iii) the amortization of all fees payable in connection with the
incurrence of Indebtedness of either of the Servicer or UPFC to the extent included in interest expense, and (iv) the portion of any Capitalized Lease obligation allocable to interest expense, in each case for such period, computed, calculated
and determined on a consolidated basis for UPFC in accordance with GAAP. 
  

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 “Investment Company Act” means the Investment Company Act of 1940, including, unless the
context otherwise requires, the rules and regulations thereunder, as amended. 
 “Late Payment Rate” means, for any date of
determination, 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%. 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. 
 “Liabilities” shall have the meaning ascribed to such term in Section
3.04(a) hereof. 
 “Losses” means (a) any actual out-of-pocket loss paid by the Insurer or its respective parents,
subsidiaries and affiliates or any shareholder, director, officer, employee, agent or any “controlling person” (as such term is used in the Securities Act) of any of the foregoing and (b) any actual out-of-pocket costs and expenses
paid by such party, including reasonable fees and expenses of its counsel, to the extent not paid, satisfied or reimbursed from funds provided by any other Person (provided that the foregoing shall not create or imply any obligation to pursue
recourse against any such other Person). 
 “Material Adverse Change” means, in respect of any Person, a material adverse
change in (a) the business, financial condition, results of operations or properties 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 Insurer. 
 “Obligor” means the original obligor under each Receivable, including any guarantor of such obligor and their respective successors.

 “Offering Document” means the Prospectus dated February 5, 2007 and the Prospectus Supplement thereto dated
June 5, 2007 of the Issuer in respect of the Obligations (and any amendment or supplement thereto) and any other offering document in respect of the Obligations prepared by UACC, the Servicer, the Seller or the Issuer that makes reference to
the Policy. 
 “Opinion Facts and Assumptions” means the facts and assumptions contained in the insolvency opinion dated
June 14, 2007 by Mitchell Silberberg & Knupp LLP and the officer’s certificates attached as exhibits thereto insofar as they relate to the Seller, the Issuer and UACC. 
 “Owner” shall have the meaning set forth in the Policy. 
 “Person” means an individual, joint stock company, trust, unincorporated association, joint venture, corporation, business or owner trust, limited liability company, partnership or other organization
or entity (whether governmental or private). 
  

 4 

 “Plan” means any employee pension benefit plan or welfare benefit plan subject to ERISA
or Section 401(a) of the Code, and in respect of which UPFC or any of its Affiliates is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

 “Premium” means the premium payable in accordance with Section 3.02 hereof. 
 “Premium Letter” means the Premium Letter from the Insurer to UACC, the Issuer, the Trustee and the Trust Collateral Agent dated
June 14, 2007. 
 “Premium Percentage” shall have the meaning ascribed to such term in Section 3.02 hereof.

 “Sale Agreement” means the Sale Agreement dated as of June 1, 2007, between the Seller and UACC, as the same may be
amended or supplemented from time to time in accordance with the terms thereof. 
 “Sale and Servicing Agreement” means the
Sale and Servicing Agreement dated as of June 1, 2007 among the Issuer, the Seller, the Servicer, the Backup Servicer, the Trust Collateral Agent and the Designated Backup Subservicer, as the same may be amended or supplemented from time to
time in accordance with the terms thereof. 
 “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. 
 “Specified Impaired Amount” means the aggregate Principal Balance of the Receivables subject to a Chapter 7 or Chapter 13 proceeding under the Bankruptcy Code that are more than 120 days past due.

 “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., 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 Insurer.

 “Tangible Stockholders’ Equity” means shareholders’ equity less goodwill. 
 “Tangible Net Worth” means, with respect to any Person, the net worth of such Person calculated in accordance with GAAP, after
subtracting therefrom the aggregate amount of such Person’s intangible assets, including, without limitation, goodwill, franchises, licenses, patents, trademarks, copyrights and service marks. 
 “Term of the Insurance Agreement” shall be determined as provided in Section 4.01 hereof. 
  

 5 

 “Transaction” means the transactions contemplated by the Transaction Documents,
including the transactions described in the Transaction Documents. 
 “Transaction Documents” means this Insurance
Agreement, the Indemnification Agreement, the Indenture, the Trust Agreement, the Sale and Servicing Agreement, the Sale Agreement, the Underwriting Agreement, the Mail Box Access Agreement, the Premium Letter, the Spread Account Agreement and the
Obligations. 
 “Trust Agreement” means the Amended and Restated Trust Agreement dated as of June 14, 2007 between the
Seller and Wells Fargo Delaware Trust Company, as Owner Trustee, as the same may be amended or supplemented from time to time in accordance with the terms thereof. 
 “Trust Collateral Agent” means Deutsche Bank Trust Company Americas, a New York banking corporation, as trust collateral agent under the Indenture, and any successor to the Trust Collateral Agent
under the Indenture. 
 “Trustee” means Deutsche Bank Trust Company Americas, as Trustee under the Indenture, and any
successor Trustee under the Indenture. 
 “Trust Indenture Act” means the Trust Indenture Act of 1939, including, unless the
context otherwise requires, the rules and regulations thereunder, as amended from time to time. 
 “Underwriter” means
Deutsche Bank Securities. 
 “Underwriting Agreement” means the Underwriting Agreement between the Underwriter and the
Seller with respect to the offer and sale of the Obligations, as the same may be amended from time to time. 
 “UPFC” means
United Pan Am Financial Corp. 
 ARTICLE II 
 REPRESENTATIONS, WARRANTIES AND COVENANTS 
 Section 2.01. Representation and
Warranties of UACC, the Servicer and the Seller. UACC, the Servicer and the Seller represent, warrant and covenant as of the Date of Issuance, each as to those matters relating to itself, as follows: 
 (a) Due Organization and Qualification. UACC, the Servicer and the Seller are each a corporation, duly organized, validly
existing and in good standing under the laws of its respective jurisdiction of organization. Each of UACC, the Servicer and the Seller is duly qualified to do business, is in good standing and has obtained all licenses, permits, charters,
registrations and approvals (together, “approvals”) necessary for the conduct of its business as currently conducted and as described in the Offering Document and the performance of its obligations under the Transaction Documents in each
jurisdiction in which the failure to be so qualified or to obtain such approvals would render any Transaction Document unenforceable in any respect or would have a material adverse effect upon the Transaction, the Owners or the Insurer. 

 

 6 

 (b) Power and Authority. Each of the Servicer and the Seller has all
necessary power and authority to conduct its business as currently conducted and, as described in the Offering Document, to execute, deliver and perform its obligations under the Transaction Documents and to consummate the Transaction. 

(c) Due Authorization. The execution, delivery and performance of the Transaction Documents by UACC, the Servicer and the
Seller have been duly authorized by all necessary action and do not require any additional approvals or consents of, or other action by or any notice to or filing with, any Person, including, without limitation, any governmental entity or the
Servicer’s, UACC’s, or the Seller’s stockholders, which have not previously been obtained or given by the Servicer, UACC or the Seller. 
 (d) Noncontravention. None of the execution and delivery of the Transaction Documents by UACC, the Servicer or the Seller, the consummation of the transactions contemplated thereby or by the Offering
Document or the satisfaction of the terms and conditions of the Transaction Documents: 
 (i) conflicts with or results in any
breach or violation of any provision of the organizational documents of the Servicer, UACC or the Seller or any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award currently in effect having applicability to the
Servicer, UACC or the Seller or any of their material properties, including regulations issued by an administrative agency or other governmental authority having supervisory powers over the Servicer, UACC or the Seller; 
 (ii) constitutes a default by the Servicer, UACC or the Seller under or a breach of any provision of any loan agreement, mortgage,
indenture or other agreement or instrument to which the Servicer, UACC or the Seller is a party or by which any of its or their respective properties, which are individually or in the aggregate material to the Servicer, UACC or the Seller, is or may
be bound or affected; or 
 (iii) results in or requires the creation of any lien upon or in respect of any assets of the
Servicer, UACC or the Seller, except as contemplated by the Transaction Documents. 
 (e) Legal Proceedings.
There is no action, proceeding or investigation by or before any court, governmental or administrative agency or arbitrator against or affecting the Servicer, UACC or the Seller, or any of its or their subsidiaries, or any properties or rights of
the Servicer, UACC or the Seller or any of its or their subsidiaries, pending or, to the Servicer’s, UACC’s or the Seller’s knowledge after reasonable inquiry, threatened, which in any case could reasonably be expected to result in a
Material Adverse Change with respect to UACC, the Servicer or the Seller. 
 (f) Valid and Binding Obligations.
The Obligations, when executed, authenticated and issued in accordance with the Indenture, and the Transaction Documents (other than the Obligations), when executed and delivered by the Servicer, the Seller and 

  

 7 

 
UACC, will constitute the legal, valid and binding obligations of the Servicer, UACC, the Seller, and the Trust, as applicable, enforceable in accordance
with their respective terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and general equitable principles and public policy
considerations as to rights of indemnification for violations of federal securities laws. None of the Servicer, UACC or the Seller will at any time in the future deny that the Transaction Documents constitute the legal, valid and binding obligations
of the Servicer, UACC, the Seller or the Trust, as applicable. 
 (g) Financial Statements. The Financial
Statements of UPFC, copies of which have been furnished to the Insurer by UACC, (i) are, as of the dates and for the periods referred to therein, complete and correct in all material respects, (ii) present fairly the financial condition
and results of operations of UPFC, as of the dates and for the periods indicated and (iii) 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 UPFC, UACC, the Seller or the Servicer. Except as disclosed in the Financial Statements,
UPFC, UACC, the Seller and the Servicer are 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 UPFC, UACC, the Seller or the
Servicer. 
 (h) Compliance With Law, Etc. No practice, procedure or policy employed, or proposed to be
employed, by the Servicer, UACC or the Seller in the conduct of its business violates any law, regulation, judgment, agreement, order or decree applicable to any of them that, if enforced, could reasonably be expected to result in a Material Adverse
Change with respect to the Servicer, UACC or the Seller. The Servicer, UACC and the Seller are not in breach of or in default under any applicable law or administrative regulation of its respective jurisdiction of organization, or any department,
division, agency or instrumentality thereof or of the United States or any applicable judgment or decree or any loan agreement, note, resolution, certificate, agreement or other instrument to which the Servicer, UACC or the Seller is a party or
is otherwise subject which, if enforced, would have a material adverse effect on the ability of the Servicer, UACC or the Seller, as the case may be, to perform its respective obligations under the Transaction Documents. 
 (i) Taxes. The Servicer, UACC and the Seller and the Servicer’s, UACC’s and the Seller’s parent company or
companies have filed prior to the date hereof all federal and state tax returns that are required to be filed and paid all taxes, including any assessments received by them that are not being contested in good faith, to the extent that such taxes
have become due, except for any failures to file or pay that, individually or in the aggregate, would not result in a Material Adverse Change with respect to the Servicer, UACC or the Seller. 
 (j) Accuracy of Information. Neither the Transaction Documents nor other information relating to the Receivables, the
operations of the Servicer, UACC or the Seller (including servicing or origination of loans) or the financial condition of the Servicer, 

  

 8 

 
UACC or the Seller (collectively, the “Documents”), as amended, supplemented or superseded, furnished to the Insurer by the Servicer, UACC or the
Seller contains any statement of a material fact by the Servicer, UACC or the Seller which was untrue or misleading in any material adverse respect when made. None of the Servicer, UACC or the Seller has any knowledge of circumstances that could
reasonably be expected to cause a Material Adverse Change with respect to the Servicer, UACC or the Seller. Since the furnishing of the Documents, there has been no change or any development or event involving a prospective change known to the
Servicer, UACC or the Seller that would render any of the Documents untrue or misleading in any material respect. 
 (k)
Compliance With Securities Laws. The offer and sale of the Obligations comply in all material respects with all requirements of law, including all registration requirements of applicable securities laws. Without limitation of the
foregoing, the Offering Document 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 Offering Document set forth under the headings “The Policy” and “The Insurer” or the consolidated financial statements of the
Insurer incorporated by reference in the Offering Document. Neither the offer nor the sale of the Obligations has been or will be in violation of the Securities Act or any other federal or state securities laws. The Trust is not required to be
registered as an “investment company” under the Investment Company Act. 
 (l) Transaction Documents.
Each of the representations and warranties of the Servicer, UACC and the Seller contained in the Transaction Documents is true and correct in all material respects, and the Servicer, UACC and the Seller hereby make each such representation and
warranty to, and for the benefit of, the Insurer as if the same were set forth in full herein. 
 (m) Solvency;
Fraudulent Conveyance. The Servicer, UACC and the Seller are solvent and will not be rendered insolvent by the Transaction and, after giving effect to the Transaction, none of the Servicer, UACC or the Seller will be left with an
unreasonably small amount of capital with which to engage in its business, nor does the Servicer, UACC or the Seller intend to incur, or believe that it has incurred, debts beyond its ability to pay as they mature. None of the Servicer, UACC or the
Seller 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 the Servicer, UACC or the Seller or any of
their assets. The amount of consideration being received by the Issuer upon the sale of the Obligations to the Underwriter constitutes reasonably equivalent value and fair consideration for the interest in the Receivables securing the Obligations.
UACC is not transferring the Receivables to the Seller, the Seller is not transferring the Receivables to the Issuer, the Issuer is not pledging the Receivables to the Trustee and the Issuer is not selling the Obligations to the Underwriter, as
provided in the Transaction Documents, with any intent to hinder, delay or defraud any of the Seller’s or UACC’s creditors. 
  

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 (n) Principal Place of Business. 
 (i) The principal place of business of UACC and the Servicer is located in Irvine, California and UACC and the Servicer are a corporation
organized under the laws of the State of California. “United Auto Credit Corporation” is the correct legal name of UACC and the Servicer indicated on the public records of UACC’s and the Servicer’s jurisdiction of organization
which shows UACC and the Servicer to be organized. 
 (ii) The principal place of business of the Seller is located in Hurst,
Texas and the Seller is a corporation organized under the laws of the State of Texas. “UPFC Auto Financing Corporation” is the correct legal name of the Seller indicated on the public records of the Seller’s jurisdiction of
organization which shows the Seller to be organized. 
 (o) Opinion Facts and Assumptions. The Opinion Facts and
Assumptions insofar as they relate to the Seller and UACC are true and correct as of the Date of Issuance. 
 Section 2.02.
Affirmative Covenants of the Servicer, UACC and the Seller. The Servicer, UACC and the Seller hereby agree that during the Term of the Insurance Agreement, unless the Insurer shall otherwise expressly consent in writing:

 (a) Compliance With Agreements and Applicable Laws. The Servicer, UACC and the Seller shall not be in default
under the Transaction Documents and shall comply with all material requirements of any law, rule or regulation applicable to it. None of the Servicer, UACC or the Seller shall agree to any amendment to or modification of the terms of any Transaction
Documents unless the Insurer shall have given its prior written consent. 
 (b) Corporate Existence. The
Servicer, its successors and assigns, UACC, its successors and assigns, the Seller, its successors and assigns shall maintain their corporate or business trust existence and shall at all times continue to be duly organized under the laws of their
respective jurisdictions of organization and duly qualified and duly authorized (as described in section 2.01(a), (b) and (c) hereof) and shall conduct its business in accordance with the terms of its certificate or articles of
incorporation, bylaws and organizational documents. 
 (c) Financial Statements; Accountants’ Reports; Other
Information. The Servicer, UACC and the Seller shall keep or cause to be kept in reasonable detail books and records of account of their assets and business, including, but not limited to, books and records relating to the Transaction. The
Servicer and the Seller shall furnish or cause to be furnished to the Insurer: 
 (i) Annual Financial Statements. As
soon as available, and in any event within 120 days after the close of each fiscal year of UPFC, the audited consolidated balance sheets of UPFC, and its subsidiaries as of the end of such fiscal year and the related audited consolidated
statements of income, changes in shareholders’ equity and cash flows for such fiscal year, all in reasonable detail 

  

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and stating in comparative form the respective figures for the corresponding date and period in the preceding fiscal year, prepared in accordance with
generally accepted accounting principles, consistently applied, and accompanied by the audit opinion of UPFC’s independent accountants (which shall be nationally recognized independent public accounting firms) and by the certificate specified
in Section 2.02(e) hereof. 
 (ii) Quarterly Financial Statements. As soon as available, and in any event within
90 days after each of the first three fiscal quarters of each fiscal year of UPFC, the unaudited consolidated balance sheets of UPFC and its subsidiaries as of the end of such fiscal quarter and the related unaudited consolidated statements of
income, changes in shareholders’ equity and cash flows for such fiscal quarter, all in reasonable detail and stating in comparative form the respective figures for the corresponding date and period in the preceding fiscal year, prepared in
accordance with generally accepted accounting principles consistently applied and accompanied by the certificate specified in Section 2.02(e) hereof. 
 (iii) Initial and Continuing Reports. On or before the Closing Date, the Servicer will provide the Insurer a copy of the magnetic tape to be delivered to the Trustee, the Trust Collateral Agent and the Backup
Servicer on the Closing Date, setting forth, as to each Receivable, the information (as of the close of business on the prior day) required under the definition of “Schedule of Receivables” at Section 1.1 of the Sale and Servicing
Agreement. Thereafter, the Servicer shall deliver to the Insurer the reports required by Section 4.9 of the Sale and Servicing Agreement pursuant to the terms of Section 4.9 of the Sale and Servicing Agreement. 
 (iv) Computer Diskette. Upon request of the Insurer, the Servicer will deliver to the Insurer on a quarterly basis a computer
diskette containing a summary of the information provided to the Insurer pursuant to clause (iii) of this Section 2.02(c) and also containing information similar to the information provided in the Schedule of Receivables and any
supplements delivered to the Trust Collateral Agent and the Backup Servicer pursuant to the Sale and Servicing Agreement and described in Schedule A of the Sale and Servicing Agreement. 
 (v) Certain Information. Upon the reasonable request of the Insurer, the Servicer and the Seller shall promptly provide copies of
any requested proxy statements, financial statements, reports and registration statements which the Servicer or the Seller files with, or delivers to, the Commission or any national securities exchange. 
 (vi) Other Information. Promptly upon receipt thereof, copies of all schedules, financial statements or other similar reports
delivered to or by the Servicer or the Seller pursuant to the terms of the Transaction Documents and, promptly upon request, such other data as the Insurer may reasonably request. 
  

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 (vii) Information Regarding Warehouse Agreement. Promptly upon receipt thereof,
copies of (a) all requests for waiver or consent relating to the warehouse facility or agreement with Deutsche Bank AG, New York Branch (the “Deutsche Bank Warehouse Facility”) and (b) any notice of nonrenewal of the Deutsche
Bank Warehouse Facility. 
 All financial statements specified in clause (i) of this Section 2.02(c) shall be
furnished in consolidated form for UPFC and all its subsidiaries in the event UPFC shall consolidate its financial statements with its subsidiaries. 
 The 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 Section 2.02(c) to
the extent provided in Section 2.02(f) hereof. 
 (d) Monthly Compliance Certificate. The Servicer shall
deliver to the Insurer, on the 25th day of each month and if such day is not a Business Day then on the next Business Day a certificate signed by an officer of UACC: 
 (i) stating the most recent Tangible Net Worth for UPFC; 
 (ii) stating the amount of committed and in good standing warehouse facilities maintained by UACC; and 
 (iii) listing each Insurance Agreement Event of Default that has occurred. 
 (e) Compliance Certificate. UACC, the Servicer and the Seller shall deliver to the Insurer, concurrently with the delivery
of the financial statements required pursuant to Section 2.02(c)(i) and (ii) hereof, one or more certificates signed by an officer of UACC, an officer of the Servicer and an officer of the applicable Seller authorized to execute such
certificates on behalf of UACC, the Servicer and the Seller stating that: 
 (i) a review of the Servicer’s performance
under the Transaction Documents during such period has been made under such officer’s supervision; 
 (ii) to the best of
such individual’s knowledge following reasonable inquiry, no Default or Insurance Agreement Event of Default has occurred or, if a Default or Insurance Agreement Event of Default has occurred, specifying the nature thereof and, if the Servicer
has a right to cure, stating in reasonable detail (including, if applicable, any supporting calculations) the steps, if any, being taken by the Servicer to cure such Default or Insurance Agreement Event of Default or to otherwise comply with the
terms of the agreement to which such Default or Insurance Agreement Event of Default relates; 
 (iii) the attached financial
statements submitted in accordance with Section 2.02(c)(i) or (ii) hereof, as the case may be, are complete and correct in all material respects and present fairly the financial condition and results of operations of UPFC and its
subsidiaries as of the dates and for the periods indicated, in accordance with generally accepted accounting principles consistently applied; and 
  

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 (f) Access to Records; Discussions With Officers and Accountants. On an
annual basis, or upon the occurrence of a Material Adverse Change, a Default or an Insurance Agreement Event of Default UACC, the Servicer and the Seller shall, upon the reasonable request of the Insurer, permit the Insurer or its authorized agents
and the Backup Servicer: 
 (i) to inspect the books and records of UACC, the Servicer and the Seller as they may relate to
the Obligations, the obligations of UACC, the Servicer, or the obligations of the Seller under the Transaction Documents, and the Transaction; 
 (ii) to discuss the affairs, finances and accounts of UACC, the Servicer or the Seller with the applicable chief operating officer and chief financial officer; and 
 (iii) with UACC’s, the Servicer’s or the Seller’s consent, as applicable, which consent shall not be unreasonably withheld,
to discuss the affairs, finances and accounts of UACC, the Servicer or the Seller with UACC’s, the Servicer’s or the Seller’s independent accountants, provided that an officer of UACC, the Servicer or the Seller shall have the right
to be present during such discussions. 
 Such inspections and discussions shall be conducted during normal business hours and
shall not unreasonably disrupt the business of UACC, the Servicer or the Seller. The books and records of UACC shall be maintained at the address of UACC designated herein for receipt of notices, unless UACC shall otherwise advise the parties hereto
in writing. The books and records of the Seller shall be maintained at the address of the Seller designated herein for receipt of notices, unless the Seller shall otherwise advise the parties hereto in writing. The books and records of the Servicer
shall be maintained at the address of the Servicer designated herein for receipt of notices, unless the Servicer shall otherwise advise the parties hereto in writing. 
 The 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 Insurer to make such information available to its regulators, securities rating agencies, reinsurers, credit
and liquidity providers, counsel and accountants. 
 (g) Notice of Material Events. UACC, the Servicer and the
Seller shall be obligated (which obligation shall be satisfied as to each if performed by UACC, the Servicer or the Seller) promptly to inform the 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 or threat of any legal process, litigation or administrative or
judicial investigation or rule making or disciplinary proceeding in any federal, state or local court or before any arbitration board, or any such proceeding threatened by any government agency, that has a reasonable likelihood of being adversely
determined and (A) if so determined, could have a material adverse effect on the Servicer, the Seller, the Owners or the Insurer, (B) would be required to be disclosed to the Commission or to the UACC’s, the Servicer’s or the
Seller’s shareholders or (C) would result in a Material Adverse Change with respect to UACC, the Servicer or the Seller; 
  

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 (ii) any change in the location of the Servicer’s or the Seller’s principal
office or any change in the location of Servicer’s or the Seller’s books and records; 
 (iii) the occurrence of any
Default or Insurance Agreement Event of Default or of any Material Adverse Change; 
 (iv) the commencement of any proceedings
by or against UACC, the Servicer or the Seller under any applicable bankruptcy, reorganization, liquidation, rehabilitation, insolvency or other similar law now or hereafter in effect or of any proceeding in which a receiver, liquidator,
conservator, trustee or similar official shall have been, or may be, appointed or requested for UACC, the Servicer or the Seller or any of its or their assets; or 
 (v) the receipt of notice that (A) UACC, the Servicer or the Seller is being placed under regulatory supervision, (B) any
license, permit, charter, registration or approval necessary for the conduct of UACC’s, the Servicer’s or the Seller’s business is to be or may be suspended or revoked, or (C) UACC, the Servicer or the Seller is to cease and
desist any practice, procedure or policy employed by UACC, the Servicer or the Seller in the conduct of its business, which, in any such case, may result in a Material Adverse Change with respect to UACC, the Servicer or the Seller or would have a
material adverse effect on the Owners or the Insurer. 
 (h) Financing Statements and Further Assurances. The
Servicer shall, at its own expense, promptly take, or cause to be taken, such actions as may be necessary to (or as may be requested by the Insurer and, in the reasonable judgment of the Insurer, are necessary or desirable) (i) create and
maintain the Indenture as a valid and perfected Lien covering the Collateral and (ii) fully preserve and protect the perfected first priority security interest of the Trust Collateral Agent for the benefit of the Trust Secured Parties in, and
all rights of the Trust Collateral Agent for the benefit of the Trust Secured Parties with respect to, the Collateral, including, without limitation, the execution and filing of 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 Trust Collateral Agent in the Collateral. In
addition, each of the Servicer and the Seller agrees to cooperate with S&P and Moody’s in connection with any review of the Transaction that 

  

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may be undertaken by S&P or Moody’s after the date hereof and to provide all information reasonably requested by S&P or Moody’s. In the
event that a successor servicer is appointed pursuant to the Sale and Servicing Agreement, the transition costs and expenses incurred by such successor servicer shall be paid in accordance with Section 5.7 of the Sale and Servicing Agreement.

 (i) Maintenance of Licenses. UACC, the Servicer and the Seller, respectively, or any successors thereof shall
maintain or cause to be maintained all licenses, permits, charters and registrations which are material to the conduct of its business. 
 (j) Redemption of Obligations. UACC, the Servicer and the Seller shall instruct the Trustee, upon redemption or payment in full of the Obligations pursuant to the Indenture or otherwise, to furnish to
the Insurer a notice of such redemption and, upon a redemption or payment in full of the Obligations, to surrender the Policy to the Insurer for cancellation. 
 (k) Disclosure Document. Each Offering Document delivered with respect to the Obligations shall clearly disclose that the
Policy is not covered by the property/casualty insurance security fund specified in Article 76 of the New York Insurance Law. 
 (l) Servicing of Receivables. The Servicer shall perform such actions with respect to the Receivables as are required by or provided in the Sale and Servicing Agreement. The Servicer will provide the Insurer with written
notice of any change or amendment to any Transaction Document as currently in effect. 
 (m) Maintenance of Security
Interest. On or before each February 28, beginning in 2008, so long as any of the Obligations are outstanding, the Servicer shall furnish to the Insurer and the Trust Collateral Agent an officers’ certificate either stating
that such action has been taken with respect to the recording, filing, rerecording and refiling of any financing statements and continuation statements as is necessary to maintain the interest of the Trust Collateral Agent created by the Indenture
with respect to the Collateral and reciting the details of such action or stating that no such action is necessary to maintain such interests. Such officers’ certificate shall also describe the recording, filing, rerecording and refiling of any
financing statements and continuation statements that will be required to maintain the interest of the Trust Collateral Agent in the Collateral until the date such next officers’ certificate is due. The Servicer will use its best efforts to
cause any necessary recordings or filings to be made with respect to the Collateral. 
 (n) Closing Documents.
The Servicer shall provide or cause to be provided to the Insurer a loose transcript of the Transaction Documents and the Offering Document and an executed original copy of each document executed in connection with the Transaction within
60 days after the date of closing. Upon the request of the Insurer, the Servicer shall provide or cause to be provided to the Insurer a copy of each of the Transaction Documents on computer diskette, in a format acceptable to the Insurer.

  

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 (o) Preference Payments. With respect to any Preference Amount (as defined
in the Policy), the Servicer shall provide to the Insurer upon the request of the Insurer: 
 (i) a certified copy of the
final nonappealable order of a court having competent jurisdiction ordering the recovery by a trustee in bankruptcy as voidable preference amounts included in previous distributions under Section 5.7 of the Sale and Servicing Agreement to any
Owner pursuant to the United States Bankruptcy Code, 11 U.S.C. §§ 101 et seq., as amended (the “Bankruptcy Code”); 
 (ii) an opinion of counsel satisfactory to the Insurer, and upon which the Insurer shall be entitled to rely, stating that such order is final and is not subject to appeal; 
 (iii) an assignment in such form as is reasonably required by the Insurer, irrevocably assigning to the Insurer all rights and claims of
the Servicer, the Trustee and any Owner relating to or arising under the Receivable against the debtor which made such preference payment or otherwise with respect to such preference amount; and 
 (iv) appropriate instruments to effect (when executed by the affected party) the appointment of the Insurer as agent for the Trustee and
any Owner in any legal proceeding relating to such preference payment being in a form satisfactory to the Insurer. 
 Section 2.03.
Negative Covenants of UACC, the Servicer and the Seller. UACC, the Servicer and the Seller hereby agree that during the Term of the Insurance Agreement, unless the Insurer shall otherwise expressly consent in writing:

 (a) Impairment of Rights. None of UACC, the Servicer or the Seller shall take any action, or fail to take any
action, if such action or failure to take action may result in a material adverse change as described in clause (b) of the definition of Material Adverse Change with respect to UACC, the Servicer or the Seller, or may interfere with the
enforcement of any rights of the Insurer under or with respect to the Transaction Documents. UACC, the Servicer or the Seller, as the case may be, shall give the Insurer written notice of any such action or 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. UACC, the Servicer and the Seller
shall furnish to the Insurer all information requested by it that is reasonably necessary to determine compliance with this Section (a). 
 (b) Adverse Selection Procedure. UACC, the Servicer and the Seller shall not use any adverse selection procedure in selecting Receivables to be transferred to the Trust Collateral Agent from the
outstanding Receivables that qualify under the Indenture or the Sale and Servicing Agreement for inclusion in the Collateral. 
 (c) Waiver, Amendments, Etc. None of UACC, the Servicer or the Seller shall waive, modify or amend, or consent to any waiver, modification or amendment of, any of the terms, provisions or conditions of any of the Transaction
Documents without the prior written consent of the Insurer. 
  

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 (d) Receivables; Charge off Policy. Except as otherwise permitted in the
Indenture or Sale and Servicing Agreement, the Servicer and the Seller shall not materially alter or amend any Receivable, their respective collection policies or their respective charge-off policies in a manner that materially adversely affects the
Insurer unless the Insurer shall have previously given its consent, which consent shall not be withheld unreasonably. 
 Section 2.04.
Representations and Warranties of the Issuer. As of the Date of Issuance, the Issuer represents, warrants and covenants as follows: 
 (a) Due Organization and Qualification. The Issuer is a statutory trust and is duly organized and validly existing under the laws of its jurisdiction of organization. The Issuer is duly qualified to do
business and has obtained all licenses, permits, charters, registrations and approvals (together, “approvals”) necessary for the conduct of its business as currently conducted and as described in the Offering Document and the performance
of its obligations under the Transaction Documents to which it is a party, in each jurisdiction in which the failure to be so qualified or to obtain such approvals would render any Transaction Document to which it is a party unenforceable in any
respect or would have a material adverse effect upon the Transaction, the Owner or the Insurer. 
 (b) Power and
Authority. The Issuer has all necessary power and authority to conduct its business as currently conducted and, as described in the Offering Document, to execute, deliver and perform its obligations under the Transaction Documents to which
it is a party and to consummate the Transaction. 
 (c) Due Authorization. The execution, delivery and
performance of the Transaction Documents by the Issuer have been duly authorized by all necessary action and do not require any additional approvals or consents, or other action by or any notice to or filing with any Person, including, without
limitation, any governmental entity or the Issuer’s certificateholders, which have not previously been obtained or given by the Issuer. 
 (d) Noncontravention. Neither the execution and delivery of the Transaction Documents by the Issuer, the consummation of the Transaction contemplated thereby or by the Offering Document nor the
satisfaction of the terms and conditions of the Transaction Documents: 
 (i) conflicts with or results in any breach or
violation of any provision of the Trust Agreement or any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award currently in effect having applicability to the Issuer or any of its material properties, including
regulations issued by an administrative agency or other governmental authority having supervisory powers over the Issuer; 
  

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 (ii) constitutes a default by the Issuer under or a breach of any provision of any loan
agreement, mortgage, indenture or other agreement or instrument to which the Issuer is a party or by which any of its properties, which are individually or in the aggregate material to the Issuer, is or may be bound or affected; or 
 (iii) results in or requires the creation of any lien upon or in respect of any assets of the Issuer except as contemplated by the
Transaction Documents. 
 (e) Legal Proceedings. There is no action, proceeding or investigation by or before
any court, governmental or administrative agency or arbitrator against or affecting the Issuer or any properties or rights of the Issuer pending or, to the Issuer’s knowledge after reasonable inquiry, threatened, which, in any case, could
reasonably be expected to result in a Material Adverse Change with respect to the Issuer. 
 (f) Valid and Binding
Obligations. The Obligations, when executed, authenticated and issued in accordance with the Indenture and the Transaction Documents (other than the Obligations), when executed and delivered by the Issuer, will constitute the legal, valid
and binding obligations of the Issuer enforceable in accordance with their respective terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights
generally and general equitable principles and public policy considerations as to rights of indemnification for violations of federal securities laws. The Issuer will not at any time in the future deny that the Transaction Documents constitute the
legal, valid and binding obligations of the Issuer. 
 (g) Compliance With Law, Etc. No practice, procedure or
policy employed, or proposed to be employed, by the Issuer in the conduct of its business violates any law, regulation, judgment, agreement, order or decree applicable to it that, if enforced, could reasonably be expected to result in a Material
Adverse Change with respect to the Issuer. The Issuer is not in breach of or default under any applicable law or administrative regulation of its jurisdiction of organization, or any department, division, agency or instrumentality thereof or of the
United States or any applicable judgment or decree or any loan agreement, note, resolution, certificate, agreement or other instrument to which the Issuer is a party or is otherwise subject which, if enforced, would have a material adverse
effect on the ability of the Issuer, to perform its obligations under the Transaction Documents. 
 (h) Compliance With
Securities Laws. The offer and sale of the Obligations comply in all material respects with all requirements of law, including all registration requirements of applicable securities laws. Without limitation of the foregoing, the Offering
Document 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 Offering Document set forth under the heading “The Policy” and “The Insurer” or the consolidated financial statements of the Insurer incorporated by reference
in the Offering Document. Neither the offer nor the sale of the Obligations has been or will be in violation of the Securities Act or any other federal or state securities laws. 
  

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 (i) Taxes. The Issuer has filed prior to the date hereof all federal and
state tax returns that are required to be filed and paid all taxes, including any assessments received by them that are not being contested in good faith, to the extent that such taxes have become due, except for any failures to file or pay that,
individually or in the aggregate, would not result in a Material Adverse Change with respect to the Issuer. 
 (j)
Transaction Documents. Each of the representations and warranties of the Issuer contained in the Transaction Documents is true and correct in all material respects, and the Issuer hereby makes each such representation and warranty to,
and for the benefit of, the 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 or in this Insurance
Agreement. 
 (k) Solvency. The Issuer is solvent and will not be rendered insolvent by the Transaction and,
after giving effect to the Transaction, the Issuer will not be left with an unreasonably small amount of capital with which to engage in its respective business, nor does the Issuer intend to incur, or believe that it has incurred, debts beyond its
ability to pay as they mature. The Issuer 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
the Issuer or any of its assets. 
 (l) Principal Place of Business. The principal place of business of the
Issuer is located in Wilmington, Delaware and the Issuer is a statutory trust organized under the laws of the State of Delaware. “UPFC Auto Receivables Trust 2007-A” is the correct legal name of the Issuer indicated on the public records
of the Issuer’s jurisdiction of organization which shows the Issuer to be organized. 
 (m) Investment Company
Act. The Issuer is not an “investment company,” or an “affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company,” as such terms are defined in the
Investment Company Act. The Issuer is not required to be registered as an “investment company” under the Investment Company Act. 
 (n) No Consents. No authorization or approval or other action by, and no notice to or filing with, any Person, including, without limitation, any governmental entity or regulatory body, is required for
the due execution, delivery and performance by the Issuer of the Transaction Documents or any other material document or instrument to be delivered thereunder, except (in each case) such as have been obtained or the failure of which to be obtained
would not be reasonably likely to have a material adverse effect on the Transaction. 
 (o) No Material Event of
Default. There is no material event of default on the part of the Issuer under any agreement involving financial obligations which would materially adversely impact the financial condition or operations of the Issuer or its obligations under
any document associated with this Transaction. 
  

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 (p) Opinion Facts and Assumptions. The Opinion Facts and Assumptions
insofar as they relate to the Issuer are true and correct as of the Date of Issuance. 
 Section 2.05. Affirmative Covenants of the
Issuer. The Issuer hereby agrees that during the Term of the Insurance Agreement, unless the Insurer shall otherwise expressly consent in writing: 
 (a) Compliance With Agreements and Applicable Laws. The Issuer shall not be in default under the Transaction Documents and shall comply with all material requirements of any law, rule or regulation
applicable to it. The Issuer shall not agree to any material amendment to or modification of the terms of any Transaction Documents unless the Insurer shall have given its prior written consent. 
 (b) Maintain Existence. The Issuer and its successors and assigns shall maintain its existence and shall at all times
continue to be duly organized under the laws of its jurisdiction and duly qualified and duly authorized and shall conduct its business in accordance with the terms of its organizational documents. 
 (c) Notice of Material Events. The Issuer shall be obligated promptly to inform the Insurer in writing of the occurrence of
any of the following to the extent any of the following relate to it and to the extent that it receives actual notice of the occurrence of any of the following events: 
 (i) the submission of any claim or the initiation or threat of any legal process, litigation or administrative or judicial investigation,
or rule making or disciplinary proceeding by or against the Issuer that (A) could be required to be disclosed to the Commission or to the Issuer’s owners or (B) could result in a Material Adverse Change with respect to the Issuer or
the promulgation of any proceeding or any proposed or final rule which would result in a Material Adverse Change with respect to the Issuer; 
 (ii) any change in the location of the Issuer’s principal office, jurisdiction of organization, legal name as indicated on the public records of the Issuer’s jurisdiction of organization which shows the
Issuer’s to be organized, or any change in the location of the Issuer’s books and records; 
 (iii) the occurrence
of any Default or Insurance Agreement Event of Default or of any Material Adverse Change; 
 (iv) the commencement of any
proceedings by or against the Issuer under any applicable bankruptcy, reorganization, liquidation, rehabilitation, insolvency or other similar law now or hereafter in effect or of any proceeding in which a receiver, liquidator, conservator, trustee
or similar official shall have been, or may be, appointed or requested for the Issuer or any of its assets; or 
  

 20 

 (v) the receipt of notice that (A) the Issuer is being placed under regulatory
supervision, (B) any license, permit, charter, registration or approval necessary for the conduct of the Issuer’s business is to be, or may be suspended or revoked, or (C) the Issuer is to cease and desist any practice, procedure or
policy employed by the Issuer in the conduct of its business, and such cessation may result in a Material Adverse Change with respect to the Issuer. 
 (d) Financing Statements and Further Assurances. To the extent provided in the Indenture, the Issuer 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 Trustee. The Issuer shall, upon the request of the Insurer, from
time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, within 30 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 to which it is a party. In addition, the Issuer agrees to cooperate with S&P and Moody’s in connection with any review of the Transaction that may be
undertaken by S&P and Moody’s after the date hereof. 
 (e) Maintenance of Licenses. The Issuer, or any
successors thereof, shall maintain all licenses, permits, charters and registrations which are material to the conduct of its business. 
 (f) Third-Party Beneficiary. The Issuer agrees that the Insurer shall have all rights of a third-party beneficiary in respect of each Transaction Document and hereby incorporates and restates its
representations, warranties and covenants as set forth therein for the benefit of the Insurer. 
 (g) Tax
Matters. The Issuer will take all actions necessary to ensure that the Issuer is treated as a disregarded entity for federal income tax purposes and not as an association (or publicly traded partnership), taxable as a corporation.

 (h) Financial Statements; Accountants’ Reports; Other Information. The Issuer shall keep or cause to be
kept in reasonable detail books and records of account of its assets and business, including, but not limited to, books and records relating to the Transaction. The Issuer shall furnish or cause to be furnished to the Insurer promptly upon receipt
thereof, copies of all schedules, financial statements or other similar reports delivered to or by the Issuer pursuant to the terms of the Transaction Documents and, promptly upon request, such other data as the Insurer may reasonably request.

 (i) Access to Records; Discussions With Officers and Accountants. On an annual basis, or upon the occurrence
of a Material Adverse Change, the Issuer shall, upon the reasonable request of the Insurer, at its expense, permit the Insurer or its authorized agents: 
 (i) to inspect the books and records of the Issuer as they may relate to the Obligations, the obligations of the Issuer under the Transaction Documents, and the Transaction; 
  

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 (ii) to discuss the affairs, finances and accounts of the Issuer; and 
 (iii) with the Issuer’s consent, as the case may be, which consent shall not be unreasonably withheld, to discuss the affairs,
finances and accounts of the Issuer with the Issuer’s independent accountants, provided that a representative of the Seller or the Issuer shall have the right to be present during such discussions. 
 Such inspections and discussions shall be conducted during normal business hours and shall not unreasonably disrupt the business of the
Issuer. The books and records of the Issuer will be maintained at the address of the Issuer designated herein for receipt of notices, unless the Issuer shall otherwise advise the parties hereto in writing. 
 The 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 Insurer to make such information available to its regulators, securities rating agencies, reinsurers, credit
and liquidity providers, counsel and accountants. 
 Section 2.06. Negative Covenants of the Issuer. The Issuer hereby agrees
that during the Term of the Insurance Agreement, unless the Insurer shall otherwise expressly consent in writing: 
 (a)
Impairment of Rights. The Issuer shall not take any action, or fail to take any action, if such action or failure to take action may result in a material adverse change as described in clause (b) of the definition of Material
Adverse Change with respect to the Issuer, or may interfere with the enforcement of any rights of the Insurer under or with respect to the Transaction Documents. The Issuer shall give the Insurer written notice of any such action or 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. The Issuer shall
furnish to the Insurer all information requested by it that is reasonably necessary to determine compliance with this paragraph. 
 (b) Waiver, Amendments, Etc. Except in accordance with the Transaction Documents, the Issuer shall not waive, modify or amend, or consent to any waiver, modification or amendment of, any of the material terms, provisions or
conditions of the Transaction Documents without the consent of the Insurer. Except upon the prior written consent of the Insurer, the Issuer shall not allow the modification or amendment, nor consent to any modification or amendment of the
Certificate of Trust issued pursuant to the Trust Agreement. 
  

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 (c) Restrictions on Liens. The Issuer shall not, except as
contemplated by the Transaction Documents, (i) create, incur or suffer to exist, or agree to create, incur or suffer to exist, or consent to cause or permit in the future (upon the happening of a contingency or otherwise) the creation,
incurrence or existence of any lien or restriction on transferability of the Receivables or (ii) sign or file under the Uniform Commercial Code of any jurisdiction any financing statement which names the Issuer as a debtor, or sign any security
agreement authorizing any secured party thereunder to file such financing statement, with respect to the Receivables. 
 (d)
Successors. The Issuer shall not remove or replace, or cause to be removed or replaced, the Servicer, the Trustee, the Trust Collateral Agent, the Collateral Agent or the Owner Trustee without the prior written consent of the
Insurer. 
 (e) Subsidiaries. The Issuer shall not form, or cause to be formed, any subsidiaries.

 (f) No Mergers. The Issuer shall not consolidate with or merge into any Person or transfer all or any
material amount of its assets to any Person, liquidate or dissolve except as permitted by the Trust Agreement and as contemplated by the Transaction Documents. 
 (g) Other Activities. The Issuer shall not (i) sell, pledge, transfer, exchange or otherwise dispose of any of its
assets except as permitted under the Transaction Documents; or (ii) engage in any business or activity except as contemplated by the Transaction Documents and as permitted by the Trust Agreement. 
 (h) Trust Agreement. The Issuer shall not amend the Trust Agreement without the prior written consent of the Insurer.

 Section 2.07. [Reserved]. 
 ARTICLE III 
 THE POLICY; REIMBURSEMENT 
 Section 3.01. Issuance of the Policy. The Insurer agrees to issue the Policy on the Closing Date subject to satisfaction of the
conditions precedent set forth below: 
 (a) Payment of Expenses. UACC shall have agreed to reimburse or pay
directly other fees and expenses identified in Section 3.02 hereof as payable. 
 (b) Transaction
Documents. The Insurer shall have received a fully executed copy of the Premium Letter and a copy of each of the Transaction Documents and the Offering Document, in form and substance satisfactory to the Insurer, duly authorized, executed
and delivered by each party thereto. 
 (c) Certified Documents and Resolutions. The Insurer shall have received
a copy of (i) the certificate or articles of incorporation and bylaws or other organizational 

  

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documents of the Servicer and the Seller (ii) the resolutions of the Seller’s board of directors authorizing the sale of the Receivables and
(iii) a certificate of the appropriate officers of the Servicer and the Seller stating that such certificate or articles of incorporation, bylaws, resolutions or other organizational documents are in full force and effect without modification
on the Date of Issuance. 
 (d) Incumbency Certificate. The Insurer shall have received a certificate of the
Secretary or an Assistant Secretary of the Servicer and the Seller certifying the names and signatures of the officers of the Servicer and the Seller authorized to execute and deliver the Transaction Documents and that shareholder consent to the
execution and delivery of such documents is not necessary. 
 (e) Representations and Warranties; Certificate.
The representations and warranties of the Servicer and the Seller 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 Insurer shall have
received a certificate of appropriate officers of the Servicer and the Seller to that effect. 
 (f) Opinions of
Counsel. 
 (i) Mitchell Silberberg & Knupp LLP shall have issued its favorable opinion, in form and
substance acceptable to the Insurer and its counsel, regarding the corporate existence and authority of UACC, the Servicer and the Seller. 
 (ii) Mitchell Silberberg & Knupp LLP shall have issued its favorable opinion, in form and substance acceptable to the Insurer and its counsel, regarding the enforceability and validity of the Transaction
Documents against UACC, the Servicer and the Seller. 
 (iii) Richards, Layton & Finger shall have issued its
favorable opinion, in form and substance acceptable to the Insurer and its counsel, regarding the business trust existence and authority of the Issuer and the validity and the enforceability of the Transaction Documents against the Issuer.

 (iv) Emmet, Marvin & Martin, LLP shall have issued its favorable opinion, in form and substance acceptable to the
Insurer and its counsel, regarding the corporate existence and authority of the Trustee, the Trust Collateral Agent, the Collateral Agent and the Backup Servicer and the validity and the enforceability of the Transaction Documents against the
Trustee. 
 (v) Mitchell Silberberg & Knupp LLP shall have furnished its opinions, in form and substance acceptable
to the Insurer and its counsel, regarding the sale of the Receivables, certain matters with respect to perfection issues, and the tax treatment of payments on the Obligations under federal and state tax laws. 
 (vi) The Insurer shall have received such other opinions of counsel, in form and substance acceptable to the Insurer and its counsel,
addressing such 

  

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other matters as the Insurer may reasonably request. Each opinion of counsel delivered in connection with the Transaction shall be addressed to and delivered
to the Insurer. 
 (g) Approvals, Etc. The 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 UACC, the Servicer and the Seller, 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 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) Issuance of Ratings. The Insurer shall have received confirmation that the rating on the Obligations without regard to
the Policy will have a shadow rating from S&P and Moody’s at a level required by the Insurer. 
 (k) No
Default. No Default or Insurance Agreement Event of Default shall have occurred. 
 (l) Additional
Items. The Insurer shall have received such other documents, instruments, approvals or opinions requested by the Insurer or its counsel as may be reasonably necessary to effect the Transaction, including, but not limited to, evidence
satisfactory to the Insurer and its counsel that the conditions precedent, if any, in the Transaction Documents have been satisfied. 
 (m) Conform to Documents. The Insurer and its counsel shall have determined that all documents, certificates and opinions to be delivered in connection with the Obligations conform to the terms of the Transaction Documents.

 (n) Compliance With Premium Letter. All other terms, conditions and requirements of the Premium Letter
shall have been satisfied. 
 (o) Satisfaction of Conditions of the Underwriting Agreement. All conditions in
the Underwriting Agreement relating to the Underwriter’s obligation to purchase the Obligations shall have been satisfied. 
 (p) Underwriting Agreement. The Insurer shall have received copies of each of the documents, and shall be entitled to rely on each of the documents, required to be delivered to the Underwriter pursuant to the Underwriting
Agreement. 
  

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 Section 3.02. Payment of Fees and Premium. 
 (a) Legal and Accounting Fees. UACC shall pay or cause to be paid, on the Date of Issuance, legal fees and disbursements
incurred by the Insurer in connection with the issuance of the Policy and any fees of the Insurer’s auditors, in each case in accordance with the terms of the Premium Letter. Any fees of the Insurer’s auditors payable in respect of any
amendment or supplement to the Offering Document or any other Offering Document incurred after the Date of Issuance shall be paid by UACC on demand. 
 (b) Premium. In consideration of the issuance by the Insurer of the Policy, the Insurer shall be entitled to receive the Premium as and when due in accordance with the terms of the Premium Letter
(i) in the case of Premium due on or before the Date of Issuance, directly from UACC and (ii) in the case of Premium due after the Date of Issuance, from the Issuer pursuant to the Sale and Servicing Agreement. For purposes of the Sale and
Servicing Agreement, the term “Premium Percentage” shall have the meaning set forth in paragraph 2 of the Premium Letter. The Premium shall be calculated according to the Premium Letter for the amount due on or before the Date of
Issuance, if any, and paragraph 2 of the Premium Letter for the amount due on each Distribution Date. The Premium paid hereunder or under the Sale and Servicing Agreement shall be nonrefundable without regard to whether the Insurer makes any
payment under the Policy or any other circumstances relating to the Obligations or provision being made for payment of the Obligations prior to maturity. The Servicer and the Issuer shall make all payments of Premium to be made by them by wire
transfer to an account designated from time to time by the Insurer by written notice to the Servicer, the Issuer, and the Trustee. 
 Section
3.03. Reimbursement and Additional Payment Obligation. 
 (a) In accordance with the priorities
established in Section 5.7 of the Sale and Servicing Agreement, the Insurer shall be entitled to (i) reimbursement for any payment made by the Insurer under the Policy, 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 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 Insurer hereunder together with interest thereon at a rate equal to the Late Payment Rate, (iii) reimbursement for any payments made by the Insurer with respect to the fees and
expenses of a replacement servicer or with respect to any transition costs relating to the transfer of servicing from the Servicer to the replacement servicer together with interest thereon at a rate equal to the Late Payment Rate, (iv) all
costs and expenses of the Insurer in connection with any action, proceeding or investigation affecting the Issuer, or the Collateral or the rights or obligations of the Insurer hereunder or under the Policy or the Transaction Documents, including
(without limitation) any judgment or settlement entered into affecting the Insurer or the Insurer’s interests, together with interest thereon at a rate equal to the Late Payment Rate and (v) reimbursement for any payments made by the
Insurer on behalf of, or advanced to the Collateral Agent, the Trust Collateral Agent or the Trustee. 
  

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 (b) Notwithstanding anything in Section 3.03(a) to the contrary, UACC, the Servicer
and the Seller agree to reimburse the Insurer as follows: (i) for payments made under the Policy arising as a result of UACC’s failure to repurchase any Receivable required to be repurchased pursuant to Section 3.2 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 Policy, arising as a result of (A) the Servicer’s failure to deposit into the Collection Account any amount
required to be so deposited pursuant to the Indenture, the Sale and Servicing Agreement or any other Transaction Document, (B) UACC’s failure to repurchase any Receivable required to be repurchased pursuant to Section 4.7 of the Sale
and Servicing Agreement or (C) the Seller’s failure to repurchase any Receivable required to be repurchased pursuant to Section 3.4 of the Sale Agreement, in each case 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) UACC, the Servicer and the Seller agree to pay to the Insurer as follows: any and all charges, fees,
costs and expenses that the Insurer may reasonably pay or incur, including, but not limited to, attorneys’ and accountants’ fees and expenses, in connection with (i) any accounts established to facilitate payments under the Policy to
the extent the Insurer has not been immediately reimbursed on the date that any amount is paid by the Insurer under the Policy, (ii) the enforcement, defense or preservation of any rights in respect of any of the Transaction Documents,
including defending, monitoring or participating in any litigation or proceeding (including 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, (iii) any amendment, consent, waiver or other action with respect to, or related to, any Transaction Document, whether or not executed or completed,
(iv) payments made by MBIA relating to the Mail Box Access Agreement or (v) preparation of bound volumes of the Transaction documents; costs and expenses shall include a reasonable allocation of compensation and overhead attributable to
the time of employees of the Insurer spent in connection with the actions described in clause (ii) above, and the Insurer reserves the right to charge a reasonable fee as a condition to executing any waiver or consent proposed in respect
of any of the Transaction Documents. Such amounts shall be payable within 60 days of the receipt by UACC, the Servicer or the Seller of an invoice therefore. 
 (d) UACC, the Servicer and the Seller agree to pay to the Insurer as follows: interest on any and all amounts described in
subsections (b), (c), (e) and (f) 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 hereof from the date due until
payment thereof in full, in each case payable to the Insurer at the Late Payment Rate per annum. 
  

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 (e) UACC, and, as applicable, the Servicer, the Seller, and the Issuer agree to pay to
the Insurer as follows: any payments made by the Insurer on behalf of, or advanced to the Servicer, the Seller, the Trustee, the Trust Collateral Agent, the Collateral Agent or the Issuer, respectively, including, without limitation, any amounts
payable by the Servicer, the Seller or the Issuer or otherwise pursuant to the Obligations or any other Transaction Documents, including, without limitation, payments, if any, made by the Insurer with respect to retitling of the title documents
relating to the Financed Vehicles pursuant to Section 4.5 of the Sale and Servicing Agreement. 
 (f) Following
termination of the Indenture pursuant to Section 4.1 thereof, the Servicer agrees to reimburse the Insurer for any Insured Payments required to be made pursuant to the Policy subsequent to the date of such termination. 
 All such amounts are to be immediately due and payable without demand, except as otherwise provided herein. 
 Section 3.04. Indemnification; Limitation of Liability. 
 (a) In addition to any and all rights of indemnification or any other rights of the Insurer pursuant hereto or under law or equity, UACC,
the Seller and the Servicer and any successors thereto agree to pay, and to protect, indemnify and save harmless, the Insurer and its officers, directors, shareholders, employees, agents and each person, if any, who controls the Insurer within the
meaning of either Section 15 of the Securities Act or Section 20 of the Securities Exchange Act 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 Insurer (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 the Offering Document or in any amendment or supplement thereto or in any preliminary offering document, or arising out of or based
upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such Liabilities arise out of or are based upon any such untrue
statement or omission or allegation thereof based upon information set forth in the Offering Document under the captions “The Policy” and “The Insurer” or in the financial statements of the Insurer, including any information in
any amendment or supplement to the Offering Document furnished by the Insurer in writing expressly for use therein that amends or supplements such information (all such information being referred to herein as “Insurer Information”);

  

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 (ii) to the extent not covered by clause (i) above, any act or omission of UACC, the
Seller or the Servicer, or the allegation thereof, in connection with the offering, issuance, sale or delivery of the Obligations; 
 (iii) the misfeasance or malfeasance of, or negligence or theft committed by, any director, officer, employee or agent of UACC, the Servicer, the Seller or the Issuer; 
 (iv) the violation by UACC, the Issuer, the Seller or the Servicer of any federal or state securities, banking or antitrust laws, rules or
regulations in connection with the issuance, offer and sale of the Obligations or the transactions contemplated by the Transaction Documents; 
 (v) the violation by UACC, the Issuer, the Seller or the Servicer 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 and 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 UACC, the Seller or the Servicer of any of its obligations under this Insurance Agreement or any of the other
Transaction Documents; and 
 (vii) the breach by UACC, the Servicer or the Seller of any representation or warranty on the
part of UACC, the Servicer or the Seller contained in the Transaction Documents or in any certificate or report furnished or delivered to the Insurer thereunder. 
 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) UACC and the Seller agree to indemnify the Issuer and the Insurer for any and all Liabilities that have been incurred due to any claim, counterclaim, rescission, setoff or defense asserted by an Obligor under any
Receivable subject to the Federal Trade Commission regulations provided in 16 C.F.R. Part 433. 
 (c) UACC, the Servicer and
the Seller agree to indemnify and hold harmless the Issuer and the Insurer for any and all Liabilities incurred due to (i) any agreement or acquiescence by the Servicer and the Seller to any reduction, rebate, rescheduling or delay of any
payments due and owing by any Obligor under any Receivable based upon an agreement on the part of the Servicer and the Seller to make or rebate any future payments on such Receivable, (ii) any agreement on the part of the Servicer and the
Seller to make or rebate any future payments on any Receivable or (iii) any settlement of any judicial proceeding or any claim, action or proceeding of any regulatory body. 
  

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 (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 UACC, the Servicer or the Seller under this Section 3.04, notify
UACC, the Servicer or the Seller 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 UACC, the
Servicer or the Seller of the commencement thereof, UACC, the Servicer or the Seller shall be entitled to participate in, and, to the extent that it shall wish, to assume the defense thereof, with counsel satisfactory to such indemnified party, and
after notice from UACC, the Servicer or the Seller to such indemnified party of its election so to assume the defense thereof, UACC, the Servicer or the Seller 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 UACC,
the Servicer or the Seller in accordance with the terms of this subsection (d), 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 UACC, the Servicer or the Seller. UACC, the Servicer or the Seller 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 Insurer, the Trustee, the Trust Collateral Agent, the Collateral
Agent, UACC, the Seller and the Servicer agree to accept the voucher or other evidence of payment as prima facie evidence of the propriety thereof and the liability therefor to the Insurer. All payments to be made to the Insurer under this Insurance
Agreement shall be made to the Insurer in lawful currency of the United States of America in immediately available funds at the notice address for the Insurer as specified in Section 6.02 hereof on the date when due or as the Insurer shall
otherwise direct by written notice to the other parties hereto. In the event that the date of any payment to the 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 Insurer under
this Insurance Agreement shall bear interest at the Late Payment Rate from the date when due to the date paid. 
 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 Insurer is no
longer subject to a claim under the Policy and the Policy shall have been surrendered to the Insurer for cancellation and (b) all amounts payable to the Insurer by UACC, the Servicer, the Seller, or from any other source under the Transaction
Documents and all amounts payable under the Obligations have been paid in full; provided, however, that the provisions of Sections 3.02, 3.03, 3.04 and 4.06 hereof shall survive any termination of this Insurance Agreement. 
  

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 Section 4.02. Further Assurances and Corrective Instruments. 
 (a) Excepting at such times as an Insurer Default shall exist and be continuing, none of UACC, the Servicer, the Seller, the Issuer, the
Trustee, the Trust Collateral Agent, the Collateral Agent or the Backup Servicer shall grant any waiver of rights under any of the Transaction Documents to which any of them is a party without the prior written consent of the Insurer, and any such
waiver without the prior written consent of the Insurer shall be null and void and of no force or effect. 
 (b) To the
extent permitted by law, UACC, the Servicer, the Seller, the Trustee, the Trust Collateral Agent, the Collateral Agent and the Backup Servicer agree that they will, upon the request of the 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 required in the Insurer’s reasonable judgment to effectuate
the intention of or facilitate the performance of this Insurance Agreement or the other Transaction Documents. 
 Section 4.03.
Obligations Absolute. 
 (a) The obligations of UACC, the Servicer, the Seller, the Issuer, the Trustee,
the Trust Collateral Agent, the Collateral Agent and the Backup Servicer 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 Obligations or the Policy; 
 (ii) any exchange or release of any other obligations hereunder;

 (iii) the existence of any claim, setoff, defense, reduction, abatement or other right that UACC, the Servicer, the Seller,
the Issuer, the Trustee, the Trust Collateral Agent, the Collateral Agent or the Backup Servicer may have at any time against the Insurer or any other Person; 
 (iv) any document presented in connection with the Policy 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 Insurer under the Policy against
presentation of a certificate or other document that does not strictly comply with terms of the Policy; 
  

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 (vi) any failure of UACC, the Servicer, the Seller, the Issuer, the Trustee, the Trust
Collateral Agent, the Collateral Agent or the Backup Servicer to receive the proceeds from the sale of the Obligations; or 
 (vii) any breach by UACC, the Servicer, the Seller, the Issuer, the Trustee, the Trust Collateral Agent, the Collateral Agent and the Backup Servicer of any representation, warranty or covenant contained in any of the Transaction Documents.

 (b) UACC, the Servicer, the Trustee, the Trust Collateral Agent, the Collateral Agent and the Backup Servicer and any and
all others who are now or may become liable for all or part of the obligations of the Servicer, the Seller, the Issuer, the Trustee, the Trust Collateral Agent, the Collateral Agent or the Backup Servicer 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 Transaction Documents; (iv) waive all rights of abatement,
diminution, postponement or deduction, or any defense other than payment, or 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 UACC, the Servicer, the Seller, the Issuer, the Trustee, the Trust Collateral Agent, the Collateral Agent or the Backup Servicer; (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 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 UACC, the Servicer, the Seller, the Issuer,
the Trustee, the Trust Collateral Agent, the Collateral Agent and the Backup Servicer from pursuing any rights or remedies it may have against any other Person in a separate legal proceeding. 
  

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 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. None of UACC, the Servicer, the Seller or the Issuer may assign its rights under this Insurance Agreement, or delegate any of its duties hereunder, without the prior written
consent of the Insurer. None of the Trustee, the Trust Collateral Agent, the Collateral Agent or the Backup Servicer may assign its rights under this Insurance Agreement, or delegate any of its duties hereunder, without the prior written consent of
the Insurer, which consent shall not be unreasonably withheld or delayed, except to a successor or assign that is permitted by the Indenture. Any assignment made in violation of this Insurance Agreement shall be null and void. 
 (b) The 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 Policy upon such terms and conditions as the Insurer may in its discretion determine; provided, however, that no such participation or reinsurance agreement or arrangement shall relieve the Insurer of any of its
obligations hereunder or under the Policy. 
 (c) In addition, the 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 Insurer in connection therewith any rights of the Insurer under the Transaction Documents or with respect to any real or personal property or
other interests pledged to the Insurer, or in which the 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
Insurer against UACC, the Servicer, the Seller, the Issuer, the Trustee, the Trust Collateral Agent, the Collateral Agent or the Backup Servicer 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 Trustee nor any Owner shall have any right to payment from any Premiums paid or payable hereunder or under the Sale and Servicing Agreement or from
any other amounts paid by the Servicer, the Seller, the Issuer, the Trustee, the Trust Collateral Agent, the Collateral Agent or the Backup Servicer pursuant to Section 3.02, 3.03 or 3.04 hereof. 
 (e) UACC, the Servicer, the Trustee, the Trust Collateral Agent, the Collateral Agent and the Backup Servicer agree that the Insurer shall
have all rights of a third-party beneficiary in respect of the Indenture and each other Transaction Document to which it is not a signing party and hereby incorporate and restate their representations, warranties and covenants as set forth therein
for the benefit of the Insurer. 
 Section 4.05. Liability of the Insurer. Neither the Insurer nor any of its officers,
directors or employees shall be liable or responsible for (a) the use that may be made of the Policy by the Trustee or the Trust Collateral Agent or for any acts or omissions of the Trustee or the Trust Collateral Agent in connection therewith
or (b) the validity, sufficiency, accuracy or genuineness of documents delivered to the Insurer (or its Fiscal Agent) in connection with any 

  

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claim under the Policy, 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 Insurer shall have actual knowledge thereof). In furtherance and not in limitation of the foregoing, the Insurer (or its Fiscal Agent) may accept documents that appear on their face to be in order,
without responsibility for further investigation. 
 Section 4.06. Parties Will Not Institute Insolvency
Proceedings. So long as this Agreement is in effect, and for one year following its termination, none of the parties hereto will file any involuntary petition or otherwise institute any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceeding or other proceedings under any federal or state bankruptcy or similar law against the Issuer or the Seller. 
 Section 4.07. UACC, the Servicer, the Seller, the Issuer, the Trustee, the Trust Collateral Agent, the Collateral Agent and the Backup Servicer To Join in Enforcement Action. To the extent necessary to enforce
any right of the Insurer in or remedy of the Insurer under any Receivable, UACC, the Servicer, the Seller, the Issuer, the Trustee, the Trust Collateral Agent, the Collateral Agent and the Backup Servicer agree to join in any action initiated by the
Trust or the Insurer (in the case of the Trustee, the Trust Collateral Agent, the Collateral Agent and the Backup Servicer, at the expense of the Issuer or the Servicer, subject to the terms and conditions of the Transaction Documents) for the
protection of such right or exercise of such remedy. 
 Section 4.08. Subrogation. To the extent of any payments
under the Policy, the Insurer shall be fully subrogated to any remedies against UACC, the Servicer or the Seller or in respect of the Receivables available to the Trustee or the Trust Collateral Agent under the Indenture and the Sale and Servicing
Agreement. The Trustee and the Trust Collateral Agent acknowledge such subrogation and, further, agree to execute such instruments prepared by the Insurer and to take such reasonable actions as, in the sole judgment of the Insurer, are necessary to
evidence such subrogation and to perfect the rights of the Insurer to receive any moneys paid or payable under the Indenture or the Sale and Servicing Agreement. 
 Section 4.09. Insurer’s Rights Regarding Actions, Proceedings or Investigations. Until the Obligations have been paid in full, all amounts owed to the Insurer have been paid in full, this Insurance
Agreement has terminated and the Policy has been returned to the Insurer for cancellation, the following provisions shall apply, it being expressly understood that none of the following costs shall be borne by the Trustee: 
 (a) Notwithstanding anything contained herein or in the other Transaction Documents to the contrary, the Insurer shall have the right to
participate in, to direct the enforcement or defense of, and, at the Insurer’s sole option, to institute or assume the defense of, any action, proceeding or investigation that could adversely affect the Issuer or the Collateral or the rights or
obligations of the Insurer hereunder or under the Policy or the Transaction Documents, including (without limitation) any insolvency or bankruptcy proceeding in respect of UPFC, UACC, the Servicer, the Seller, the Issuer or any affiliate thereof.
Following notice to the Trustee, the Trust Collateral Agent and the Owner Trustee, the Insurer shall have exclusive right to determine, in its sole discretion, the actions necessary to preserve and protect the Collateral. All costs and expenses of
the 

  

 34 

 
Insurer in connection with such action, proceeding or investigation, including (without limitation) any judgment or settlement entered into affecting the
Insurer or the Insurer’s interests, shall be included in amounts reimbursable to the Insurer under Section 5.7 of the Sale and Servicing Agreement. 
 (b) In connection with any action, proceeding or investigation that could adversely affect the Collateral or the Issuer or the rights or
obligations of the Insurer hereunder or under the Policy or the Transaction Documents, including (without limitation) any insolvency or bankruptcy proceeding in respect of UPFC, UACC, the Servicer, the Seller, the Issuer or any affiliate thereof,
the Trustee, the Trust Collateral Agent and the Issuer hereby agree to cooperate with, and to take such action as directed by, the Insurer, including (without limitation) entering into such agreements and settlements as the Insurer shall direct, in
its sole discretion without the consent of the Owners. Notwithstanding any other provision herein or in any of the other Transaction Documents, neither the Trustee nor the Trust Collateral Agent shall be liable to the Insurer or the Owners for any
such action that conforms to the direction of the Insurer. The Trustee’s and the Trust’s reasonable out-of-pocket costs and expenses (including attorneys’ fees and expenses) with respect to any such action shall be reimbursed pursuant
to Section 5.7 of the Sale and Servicing Agreement. 
 (c) The Trustee, the Trust Collateral Agent, the Owner Trustee and
the Issuer hereby agree to provide to the Insurer prompt written notice of any action, proceeding or investigation (of which a Responsible Officer has actual knowledge) that names the Trustee, the Trust Collateral Agent, the Issuer or the Owner
Trustee on behalf of the Trust Secured Parties as a party or that involves the Issuer or the Collateral or the rights or obligations of the Insurer hereunder or under the Policy or the Transaction Documents, including (without limitation) any
insolvency or bankruptcy proceeding in respect of UPFC, UACC, the Servicer, the Seller, the Issuer or any affiliate thereof. 
 (d) So long as an Insurer Default shall not have occurred and be continuing, none of the Trustee, the Trust Collateral Agent or the Issuer shall, without the Insurer’s prior written consent, which such consent not to be unreasonably
withheld, or unless directed by the Insurer, undertake or join any litigation or agree to any settlement of any action, proceeding or investigation affecting the Collateral or the Issuer or the rights or obligations of the Insurer hereunder or under
the Policy or the other Transaction Documents. 
 (e) The Trustee agrees that the Insurer shall have such rights as set forth
in this Section, which are in addition to any rights of the Insurer pursuant to the other provisions of the Transaction Documents, that the rights set forth in this Section may be exercised by the Insurer, in its sole discretion, without the need
for the consent or approval of the Trustee, the Trust Collateral Agent or the Issuer, notwithstanding any other provision contained herein or in any of the other Transaction Documents, and that nothing contained in this Section shall be deemed to be
an obligation of the Insurer to exercise any of the rights provided for herein. 
  

 35 

 Section 4.10. Specified Impaired Amount Report. Not later than the seventh day next succeeding
each Distribution Date, UACC shall deliver a report to the Insurer stating the Specified Impaired Amount as of the end of the Collection Period relating to such Distribution Date. 
 Section 4.11. Insurer Financial Statements. The Insurer agrees, at the written request of the Issuer, to use the Insurer’s commercially
reasonable efforts to provide audited financial statements of the Insurer prepared in accordance with accounting principles generally accepted in the United States of America, to the extent that such audited financial statements are available.

 ARTICLE V 
 DEFAULTS;
REMEDIES 
 Section 5.01. Defaults. The occurrence of any of the following events shall constitute an Insurance
Agreement Event of Default hereunder: 
 (a) any representation or warranty made by UACC, the Servicer, the Seller, the
Issuer, the Owner Trustee, the Trustee, the Trust Collateral Agent, the Collateral Agent or the Backup Servicer hereunder or under any of the other Transaction Documents, or in any certificate or report furnished hereunder or under the Transaction
Documents, shall prove to be untrue, misleading, incorrect or incomplete in any material respect and such untrue, misleading, incorrect or incomplete representation or warranty is not cured within any applicable grace period contained in the
applicable Transaction Document; 
 (b) any failure by the Servicer to deliver to the Trustee for distribution to the Owners
any proceeds or payment required to be delivered under the terms of the Transaction Documents that continues unremedied for a period of two Business Days after written notice is received by the Servicer from the Trustee, the Trust Collateral Agent
or the Insurer or after the discovery of such failure by an officer of the Servicer; 
 (c) (i) UACC, the Servicer, the
Seller, the Issuer, the Owner Trustee, the Trustee, the Trust Collateral Agent, the Collateral Agent or the Backup Servicer shall fail to pay or deposit when due any amount payable by UACC, the Servicer, the Seller, the Issuer, the Owner Trustee,
the Trustee, the Trust Collateral Agent, the Collateral Agent or the Backup Servicer hereunder or under any other Transaction Document and such failure continues for a period of at least two Business Days or, if so specified in the applicable
Transaction Document, the applicable cure 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 this Insurance Agreement or any other Transaction
Document is not valid and binding on UACC, the Servicer, the Seller, the Issuer, the Owner Trustee, the Trustee, the Trust Collateral Agent, the Collateral Agent or the Backup Servicer. 
 (d) the occurrence and continuance of a “Event of Default” under the Indenture (as defined therein) or the occurrence of a
Servicer Termination Event under the Sale and Servicing Agreement; 
  

 36 

 (e) any failure on the part of UACC, the Servicer, the Seller, the Issuer, the Owner
Trustee, the Trustee, the Trust Collateral Agent, the Collateral Agent or the Backup Servicer duly to observe or perform in any material respect any other of the covenants or agreements on the part of UACC, the Servicer, the Seller, the Issuer, the
Owner Trustee, the Trustee, the Trust Collateral Agent, the Collateral Agent or the Backup Servicer contained in this Insurance Agreement or in any other Transaction Document which continues unremedied for a period of 10 days with respect to
this Insurance Agreement, or, with respect to any other Transaction Document, beyond any cure period provided for therein, after the earlier of (i) the date on which written notice of such failure, requiring the same to be remedied, shall have
been given to UACC, the Servicer, the Seller, the Issuer, the Owner Trustee, the Trustee, the Trust Collateral Agent, the Collateral Agent or the Backup Servicer. as applicable, by the Insurer (with a copy to the Trustee) or by the Trustee, the
Trust Collateral Agent or the Collateral Agent (with a copy to the Insurer), or (ii) an officer of UACC, the Servicer, the Seller, the Issuer, the Owner Trustee, the Trustee, the Trust Collateral Agent, the Collateral Agent or the Backup
Servicer, as applicable, has actual notice of any such failure; 
 (f) 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
bankruptcy, insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings, or for the winding-up or liquidation of its respective affairs, shall have been entered against UPFC, UACC, the Servicer, the Seller, the
Issuer, the Owner Trustee, the Trustee, the Trust Collateral Agent, the Collateral Agent or the Backup Servicer and such decree or order shall have remained in force undischarged or unstayed for a period of 30 consecutive days; 
 (g) UPFC, UACC, the Servicer, the Seller, the Issuer, the Owner Trustee, the Trustee, the Trust Collateral Agent, the Collateral Agent or
the Backup Servicer shall consent to the appointment of a conservator or receiver or liquidator or other similar official in any bankruptcy, insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings of or
relating to UPFC, UACC, the Servicer, the Seller, the Issuer, the Owner Trustee, the Trustee, the Trust Collateral Agent, the Collateral Agent or the Backup Servicer or of or relating to all or substantially all of its respective property;

 (h) UACC, the Servicer, the Seller, the Issuer, the Owner Trustee, the Trustee, the Trust Collateral Agent, the Collateral
Agent or the Backup Servicer 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; 
 (i) the cessation of the Trust Collateral Agent’s valid perfected first priority security interest in the Collateral for the benefit of the Trust Secured Parties; 
  

 37 

 (j) Default (as defined in the Indenture) in the payment of principal of or interest on
the Notes when due; 
 (k) a claim is made of the Policy; 
 (l) the failure of UACC, the Seller or the Issuer to comply with, or maintain the accuracy of, the Opinion Facts and Assumptions;

 (m) the occurrence of a Level 3 Trigger Event (as defined in the Spread Account Agreement); 
 (n) a Change of Control occurs with respect to UPFC or any of its Affiliates; 
 (o) failure by UACC to maintain, in good standing, a committed warehouse facility of at least $250 million; 
 (p) the entry of final rulings against any of UPFC, its consolidated subsidiaries or Affiliates by a court of competent jurisdiction
assessing monetary damages in excess of $10 million or settlements resulting in the payment by the Seller or its Affiliates of amounts in excess of $10 million; 
 (q) Ray Thousand is no longer acting in his current capacities at UPFC, its consolidated subsidiaries and Affiliates and a replacement for
Ray Thousand, acceptable to the Insurer, is not made within 90 days of (i) the departure of Ray Thousand from UPFC, its consolidated subsidiaries or Affiliates or (ii) a change in any such capacity; 
 (r) UPFC fails to maintain minimum Tangible Stockholders’ Equity of $120 million plus 50 percent of positive net income less amounts
used for stock repurchase subsequent to the reporting period ended March 31, 2007 and each subsequent quarter; 
 (s)
UPFC fails to maintain a minimum EBITDA to Interest Expense coverage of 1.2 to 1.0, the test to be made on a quarterly basis (coinciding with UPFC’s quarterly fiscal reporting) on a rolling six month basis; 
 (t) the Servicer fails to purchase Receivables within 30 days after the occurrence of any of the events described in Section 4.2(c)
of the Sale and Servicing Agreement in accordance with Section 4.2(c) of the Sale and Servicing Agreement; and 
 (u)
UACC, the Servicer, the Seller, the Issuer, the Owner Trustee, the Trustee, the Trust Collateral Agent, the Collateral Agent or the Backup Servicer assert that any of the Transaction Documents to which it is a party is not valid and binding on the
parties thereto, or any finding or ruling made by any court, governmental authority or agency having jurisdiction over any of the parties to any other of the Transaction Documents or any property thereof that any material provision of any of the
Transaction Documents is not valid and binding on the parties thereto. 
  

 38 

 Section 5.02. Remedies; No Remedy Exclusive. 
 (a) Upon the occurrence of an Insurance Agreement Event of Default, the Insurer may exercise any one or more of the rights and remedies
set forth below: 
 (i) exercise any rights and remedies under the Transaction Documents in accordance with the terms of the
Transaction Documents or direct the Trustee or the Trust Collateral Agent to exercise such remedies in accordance with the terms of the Transaction Documents; or 
 (ii) take whatever action at law or in equity as may appear necessary or desirable in its judgment to collect the amounts then due under
the Transaction Documents or to enforce performance and observance of any obligation, agreement or covenant of UACC, the Servicer, the Seller, the Issuer, the Owner Trustee, the Trustee, the Trust Collateral Agent, the Collateral Agent or the Backup
Servicer under 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 the Transaction Documents or existing at law or in equity. No delay or omission to
exercise any right or power accruing under 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 Insurer to exercise any remedy reserved to the Insurer in this Article, it shall not be necessary to give any notice other than such notice as
may be required in this Article V. 
 Section 5.03. Waivers. 
 (a) No failure by the Insurer to exercise, and no delay by the Insurer in exercising, any right hereunder shall operate as a waiver
thereof. The exercise by the Insurer of any right hereunder shall not preclude the exercise of any other right, and the remedies provided herein to the Insurer are declared in every case to be cumulative and not exclusive of any remedies provided by
law or equity. 
 (b) The Insurer shall have the right, to be exercised in its complete discretion, to waive any Insurance
Agreement Event of Default hereunder, by a writing setting forth the terms, conditions and extent of such waiver signed by the Insurer and delivered to UACC, the Servicer, the Seller, the Issuer, the Owner Trustee, the Trustee, the Trust Collateral
Agent, the Collateral Agent or the Backup Servicer. Unless such writing expressly provides to the contrary, any waiver so granted shall extend only to the specific event or occurrence which gave rise to the Insurance Agreement Event of Default so
waived and not to any other similar event or occurrence which occurs subsequent to the date of such waiver. 
  

 39 

 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 Collateral Agent, S&P and
Moody’s. 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: 
  

							
	(a)	 	To the Insurer:
		
		 	 MBIA Insurance Corporation
 113 King
Street
 Armonk, NY 10504

		 	Attention:	 	Insured Portfolio Management-Structured Finance (IPM-SF)
		 		 	(UPFC Auto Receivables Trust 2007-A)
		 	Facsimile:	 	(914) 765-3810
		 	Confirmation:	 	(914) 765-3781
		
		 	(in each case in which notice or other communication to the Insurer refers to an Insurance Agreement Event of Default, a claim on the Policy or with respect to which failure on
the part of the Insurer to respond shall be deemed to constitute consent or acceptance, then a copy of such notice or other communication should also be sent to the attention of each of the general counsel and the Insurer and shall be marked to
indicate “URGENT MATERIAL ENCLOSED.”)
		
	(b)	 	To the Seller:
		
		 	 UPFC Auto Financing Corporation
 Business
Operations Office
 860 W Airport Freeway, Suite 702
 Hurst, Texas
76054

		 	Attn: David J. Carlton, Senior Vice President
		 	Telephone: 817-577-6200
		 	Facsimile: 817-577-6201
		
		 	with a copy to:
		
		 	 United Auto Credit Corporation
 18191 Von
Karman Avenue, Suite 300
 Irvine, California 92612

		 	Attn: Arash A. Khazei, CFO
		 	Telephone: 949-224-1227
		 	Facsimile: 949-224-1910

  

 40 

			
	(c)	 	To UACC and the Servicer:
		
		 	United Auto Credit Corporation
		 	18191 Von Karman Avenue, Suite 300
		 	Irvine, CA 92612
		 	Attention: Arash A. Khazei
		
	(d)	 	To the Trustee, the Trust Collateral Agent and the Collateral Agent:
		
		 	Deutsche Bank Trust Company Americas
		 	60 Wall Street, 26th Floor
		 	New York, NY 10005
		 	Attention: Structured Finance Services
		 	Facsimile: (212) 797-8606
		
	(e)	 	To the Issuer:
		
		 	UPFC Auto Receivables Trust 2007-A
		 	c/o Wells Fargo Delaware Trust Company
		 	919 Market Street, Suite 700
		 	Wilmington, DE 19801
		 	Attention: Corporate Trust Administration
		
		 	With a copy to the Servicer at the address set forth above.

 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 WITHOUT REGARD TO CHOICE OF LAW PROVISIONS. 
 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 

  

 41 

 
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 law, 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. 
 (c) Except as provided in Section 4.06 herein, nothing contained in this Insurance Agreement shall limit or affect the 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 party hereto or its or their property in the courts of any jurisdiction. 
 Section 6.06. Consent of the Insurer. In the event that the consent of the Insurer is required under any of the Transaction
Documents, the determination whether to grant or withhold such consent shall be made by the Insurer in its sole discretion without any implied duty towards any other Person. 
 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. 
  

 42 

 Section 6.10. Limited Liability. 
 (a) No recourse under any Transaction Document shall be had against, and no personal liability shall attach to, any officer, employee,
director, affiliate, trustee 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
Obligations or the Policy, 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. 
 (b) In no event shall the Trustee, Trust Collateral Agent, the Backup Servicer
or the Collateral Agent be liable for any indirect, special, punitive or consequential loss or damage of any kind whatsoever, including, but not limited to, lost profits, even if the Trustee, Trust Collateral Agent, the Backup Servicer or the
Collateral Agent have been advised of the likelihood of such loss or damage and regardless of the form of action. 
 (c) In
no event shall the Trustee, Trust Collateral Agent, the Backup Servicer or the Collateral Agent be liable for any failure or delay in the performance of its obligations hereunder because of circumstances beyond their control, including, but not
limited to, acts of God, flood, war (whether declared or undeclared), terrorism, fire, riot, embargo, government action, including any laws, ordinances, regulations, governmental action or the like which delay, restrict or prohibit the providing of
the services contemplated by this Agreement. 
 (d) It is expressly understood and agreed by the parties hereto that
(a) this Insurance Agreement is executed and delivered by Wells Fargo Delaware Trust Company, not individually or personally but solely as trustee of the Issuer, in the exercise of the powers and authority conferred and vested in it under the
Trust Agreement, (b) each of the representations, undertakings and agreements herein made on the part of the Issuer is made and intended not as personal representations, undertakings and agreements by Wells Fargo Delaware Trust Company but is
made and intended for the purpose for binding only the Issuer and (c) under no circumstances shall Wells Fargo Delaware Trust Company be personally liable for the payment of any indebtedness or expenses 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. 
 Section 6.11. Entire Agreement. The Transaction Documents and the Policy 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. 
 [Remainder of page intentionally blank; signature page follows] 
  

 43 

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

			
	MBIA INSURANCE CORPORATION
		
	By:	 	  

	Title:	 	Assistant Secretary
	
	UPFC AUTO RECEIVABLES TRUST 2007-A, as Issuer
		
	By:	 	Wells Fargo Delaware Trust Company, not in its individual capacity but solely as Owner Trustee
		
	By:	 	  

	Title:	 	  

	
	UPFC AUTO FINANCING CORPORATION, as Seller
		
	By:	 	  

	Title:	 	  

	
	UNITED AUTO CREDIT CORPORATION, Individually and as Servicer
		
	By :	 	  

	Title:	 	  

	
	 DEUTSCHE BANK TRUST COMPANY
 AMERICAS, as
Trustee, as Trust Collateral Agent, as Collateral Agent and as Backup Servicer

		
	By:	 	  

	Title:	 	  

		
	By:	 	  

	Title:	 	  

 UPFC Auto Receivables Trust 2007-A 
 Insurance Agreement Signature Page 
 4813-8011-3153.7Spread Account Agreement

 Exhibit 10.3 
 EXECUTION COPY 
 SPREAD ACCOUNT AGREEMENT 
 among 
 UPFC AUTO RECEIVABLES TRUST 2007-A, 
 as Issuer, 
 MBIA INSURANCE CORPORATION,

 as Insurer, 
 and 
 DEUTSCHE BANK TRUST COMPANY AMERICAS, 
 as
Trustee, as Trust Collateral Agent and as Collateral Agent 
 Dated as of June 14, 2007 
  

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page
	 ARTICLE I
 DEFINITIONS

			
	 Section 1.01.
	 	Definitions	  	1
	 Section 1.02.
	 	Other Definitional Provisions	  	9
	
	 ARTICLE II
 THE SPREAD ACCOUNT AGREEMENT COLLATERAL

			
	 Section 2.01.
	 	Grant of Security Interest by the Issuer	  	9
	 Section 2.02.
	 	Priority	  	10
	 Section 2.03.
	 	Issuer Remains Liable	  	10
	 Section 2.04.
	 	Delivery and Maintenance of Spread Account Agreement Collateral	  	10
	 Section 2.05.
	 	Termination and Release of Rights	  	12
	 Section 2.06.
	 	Non-Recourse Obligations of Issuer	  	12
	
	 ARTICLE III
 SPREAD ACCOUNT

			
	 Section 3.01.
	 	Establishment of Spread Account; Initial Deposit into Spread Account; Maintenance of Spread Account	  	13
	 Section 3.02.
	 	Investments	  	13
	 Section 3.03.
	 	Payments; Priority of Payments	  	14
	 Section 3.04.
	 	General Provisions Regarding Spread Account	  	16
	 Section 3.05.
	 	Reports by the Collateral Agent	  	17
	
	 ARTICLE IV
 THE COLLATERAL AGENT

			
	 Section 4.01.
	 	Appointment and Powers	  	17
	 Section 4.02.
	 	Performance of Duties	  	17
	 Section 4.03.
	 	Limitation on Liability	  	18
	 Section 4.04.
	 	Reliance upon Documents	  	18
	 Section 4.05.
	 	Successor Collateral Agent	  	18
	 Section 4.06.
	 	Indemnification	  	20
	 Section 4.07.
	 	Compensation and Reimbursement	  	20
	 Section 4.08.
	 	Representations and Warranties of the Collateral Agent	  	21
	 Section 4.09.
	 	Waiver of Setoffs	  	21
	 Section 4.10.
	 	Control by the Controlling Party	  	21
	 Section 4.11.
	 	Limitation of Liability	  	21
	
	 ARTICLE V
 COVENANTS OF THE ISSUER

			
	 Section 5.01.
	 	Preservation of Spread Account Agreement Collateral	  	22
	 Section 5.02.
	 	Notices	  	22

					
	 Section 5.03.
	 	Waiver of Stay or Extension Laws; Marshalling of Assets	  	22
	 Section 5.04.
	 	Noninterference, etc	  	23
	 Section 5.05.
	 	Issuer Changes	  	23
	
	 ARTICLE VI
 CONTROLLING PARTY; INTERCREDITOR PROVISIONS

			
	 Section 6.01.
	 	Appointment of Controlling Party	  	23
	 Section 6.02.
	 	Controlling Party’s Authority	  	24
	 Section 6.03.
	 	Rights of Trust Secured Parties	  	24
	 Section 6.04.
	 	Degree of Care	  	25
	
	 ARTICLE VII
 REMEDIES UPON DEFAULT

			
	 Section 7.01.
	 	Remedies upon a Default	  	26
	 Section 7.02.
	 	Waiver of Default	  	26
	 Section 7.03.
	 	Restoration of Rights and Remedies	  	26
	 Section 7.04.
	 	No Remedy Exclusive	  	26
	
	 ARTICLE VIII
 MISCELLANEOUS

			
	 Section 8.01.
	 	Further Assurances	  	27
	 Section 8.02.
	 	Waiver	  	27
	 Section 8.03.
	 	Amendments; Waivers	  	27
	 Section 8.04.
	 	Severability	  	27
	 Section 8.05.
	 	Nonpetition Covenant	  	28
	 Section 8.06.
	 	Notices	  	28
	 Section 8.07.
	 	Term of this Agreement	  	30
	 Section 8.08.
	 	Assignments; Third-Party Rights; Reinsurance	  	30
	 Section 8.09.
	 	Consent of Controlling Party	  	31
	 Section 8.10.
	 	Consents to Jurisdiction	  	31
	 Section 8.11.
	 	Determination of Adverse Effect	  	31
	 Section 8.12.
	 	Headings	  	31
	 Section 8.13.
	 	TRIAL BY JURY WAIVED	  	31
	 Section 8.14.
	 	GOVERNING LAW	  	32
	 Section 8.15.
	 	Counterparts	  	32
	 Section 8.16.
	 	Limitation of Liability	  	32

  

 ii 

 SPREAD ACCOUNT AGREEMENT 
 This SPREAD ACCOUNT AGREEMENT, dated as of June 14, 2007 (this “Agreement”), is among UPFC AUTO RECEIVABLES TRUST 2007-A, as issuer (the “Issuer”), MBIA INSURANCE CORPORATION, as insurer (the
“Insurer”), and DEUTSCHE BANK TRUST COMPANY AMERICAS, as trustee (in such capacity, the “Trustee”), as trust collateral agent (in such capacity the “Trust Collateral Agent”) and as collateral agent (in such capacity,
the “Collateral Agent”). 
 RECITALS 
 WHEREAS, the Issuer was formed pursuant to the Trust Agreement dated as of February 6, 2007 as amended and restated as of June 14, 2007 (as amended from time to time, the “Trust Agreement”),
between UPFC Auto Financing Corporation. as seller, (the “Seller”) and Wells Fargo Delaware Trust Company, as owner trustee (the “Owner Trustee”). 
 WHEREAS, pursuant to a Sale and Servicing Agreement, dated as of June 1, 2007, (the “Sale and Servicing Agreement”) among the Issuer, the Seller, the Servicer, the Trust Collateral Agent, the Custodian,
the Backup Servicer and the Designated Backup Subservicer, the Seller sold to the Issuer all of its right, title and interest in and to the Receivables and Other Conveyed Property. 
 WHEREAS, pursuant to the Indenture, dated as of June 1, 2007, (the “Indenture”), between the Issuer, the Trustee and the Trust Collateral
Agent, the Issuer pledged all of its right, title and interest in and to the Collateral to the Trust Collateral Agent on behalf of the Trust Secured Parties. 
 WHEREAS, the Issuer requested that the Insurer issue the Note Policy to the Trustee to guarantee payment of the Insured Payments on each Distribution Date, in respect of the Notes. 
 WHEREAS, in consideration of the issuance of the Note Policy, the Issuer and the Servicer have agreed that the Insurer shall have certain rights as
Controlling Party to the extent set forth in the Basic Documents, with respect to the Collateral. 
 In consideration of the premises, and
for other good and valuable consideration, the adequacy, receipt and sufficiency of which are hereby acknowledged the parties hereto agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 Section 1.01. Definitions. Unless otherwise defined in this Agreement, the following terms shall have the following meanings: 
 “Collateral Agent” means, initially Deutsche Bank Trust Company Americas, in its capacity as collateral agent on behalf of the Trust
Secured Parties, including its successors in interest, until a successor Person shall have become the Collateral Agent pursuant to Section 4.05 and thereafter “Collateral Agent” shall mean such successor Person. 

 “Collateral Agent Fee” means as designated in the fee letter between Collateral Agent
and UACC. 
 “Controlling Party” means the Person designated as the Controlling Party at such time pursuant to
Section 6.01. 
 “Cumulative Net Loss” means the positive difference between (i) the sum of (A) the aggregate
Principal Balance of all Liquidated Receivables plus (B) aggregate Cram Down Losses and (ii) Liquidation Proceeds received with respect to the Receivables described in clause (i). 
 “Cumulative Net Loss Ratio” means, the ratio, expressed as a percentage, computed by dividing (a) Cumulative Net Losses by
(b) the Original Pool Balance. 
 “Default” means, (i) if the Insurer is then the Controlling Party, any Insurance
Agreement Event of Default and (ii) if the Trustee is then the Controlling Party, any Event of Default under Section 5.1 of the Indenture. 
 “Delinquency Ratio” means, with respect to any Distribution Date, the ratio, expressed as a percentage, computed by dividing: (a) the aggregate Principal Balance of all Receivables as to which
were Delinquent Receivables as of the close of business on the last day of the related Collection Period by (b) the sum of the aggregate Principal Balance of all Receivables as of the close of business on the first day of the related Collection
Period. 
 “Delinquent Receivable” means a Receivable with respect to which 10% or more of a scheduled payment is more than
sixty (60) days past due (excluding (i) Receivables which the Servicer has repossessed the related Financed Vehicle and (ii) Receivables which have become Liquidated Receivables). 
 “Final Termination Date” means the date that is the later of (i) the Insurer Termination Date and (ii) the Trustee Termination
Date. 
 “Impaired Loan Ratio” means the ratio, expressed as a percentage, computed by dividing (a) 65% of the
Specified Impaired Amount (as stated in the report most recently delivered pursuant to Section 4.10 of the Insurance Agreement) by (b) the Original Pool Balance; provided that at any time that the Specified Impaired Amount is less than
0.50% of the Aggregate Principal Balance, the Impaired Loan Ratio shall be deemed to be zero. 
 “Insured Payments” has the
meaning set forth in the Note Policy. 
 “Insurer Termination Date” means the date which is the latest of (i) the date
of the expiration of the Note Policy and the cancellation and return thereof to the Insurer, (ii) the date on which the Insurer shall have received payment and performance in full of all Insurer Trust Secured Obligations and (iii) the
latest date on which any payment referred to above could be avoided as a preference or otherwise under the United States Bankruptcy Code or any other similar federal or state law relating to insolvency, bankruptcy, rehabilitation, liquidation or
reorganization, as specified in an Opinion of Counsel delivered to the Collateral Agent, the Insurer and the Trustee. 
  

 2 

 “Issuer” means UPFC Auto Receivables Trust 2007-A. 
 “Level 1 Cumulative Net Loss Test” means a test that is met if, for each Distribution Date specified below, the sum of the Cumulative
Net Loss Ratio for the related Collection Period plus the Impaired Loan Ratio is less than or equal to the percentage set forth opposite such Distribution Date: 
  

				
	 Distribution Date occurring in:
	  	Percentage	 
	October 2007	  	1.80	%
	November 2007	  	2.40	%
	December 2007	  	3.00	%
	January 2008	  	3.50	%
	February 2008	  	4.00	%
	March 2008	  	4.50	%
	April 2008	  	5.00	%
	May 2008	  	5.50	%
	June 2008	  	6.10	%
	July 2008	  	6.60	%
	August 2008	  	7.10	%
	September 2008	  	7.60	%
	October 2008	  	8.10	%
	November 2008	  	8.60	%
	December 2008	  	9.10	%
	January 2009	  	9.60	%
	February 2009	  	10.10	%
	March 2009	  	10.60	%
	April 2009	  	11.10	%
	May 2009	  	11.60	%
	June 2009	  	12.10	%
	July 2009	  	12.40	%
	August 2009	  	12.60	%
	September 2009	  	12.90	%
	October 2009	  	13.10	%
	November 2009	  	13.40	%

  

 3 

				
	December 2009	  	13.60	%
	 January 2010
	  	13.90	%
	 February 2010
	  	14.00	%
	 March 2010
	  	14.40	%
	 April 2010
	  	14.55	%
	 May 2010
	  	14.65	%
	 June 2010
	  	14.75	%
	 July 2010
	  	14.90	%
	 August 2010
	  	15.00	%
	 September 2010 and thereafter
	  	15.10	%

 “Level 1 Delinquency Test” means a test that is met if, for each Distribution
Date specified below, the arithmetic average of the monthly Delinquency Ratios for the three immediately preceding Collection Periods is less than or equal to the percentage set forth opposite such Distribution Date: 
  

				
	 Distribution Date occurring
in:
	  	Percentage	 
	 October 2007 through December 2007
	  	2.00	%
	 January 2008 though June 2008
	  	2.50	%
	 July 2008 through December 2008
	  	3.00	%
	 January 2009 though June 2009
	  	3.50	%
	 July 2009 through December 2009
	  	4.00	%
	 January 2010 and thereafter
	  	4.50	%

 “Level 1 Trigger Event” means either of the Level 1 Cumulative Net Loss Test or
the Level 1 Delinquency Test is not met. 
 “Level 2 Cumulative Net Loss Test” means a test that is met if, for each
Distribution Date specified below, the sum of the Cumulative Net Loss Ratio for the related Collection Period plus the Impaired Loan Ratio is less than or equal to the percentage set forth opposite such Distribution Date: 
  

				
	 Distribution Date occurring
in:
	  	Percentage	 
	 October 2007
	  	2.10	%
	 November 2007
	  	2.65	%

  

 4 

				
	December 2007	  	3.35	%
	 January 2008
	  	3.85	%
	 February 2008
	  	4.35	%
	 March 2008
	  	5.00	%
	 April 2008
	  	5.65	%
	 May 2008
	  	6.35	%
	 June 2008
	  	7.05	%
	 July 2008
	  	7.55	%
	 August 2008
	  	8.20	%
	 September 2008
	  	8.90	%
	 October 2008
	  	9.55	%
	 November 2008
	  	10.05	%
	 December 2008
	  	10.70	%
	 January 2009
	  	11.20	%
	 February 2009
	  	11.70	%
	 March 2009
	  	12.20	%
	 April 2009
	  	12.70	%
	 May 2009
	  	13.20	%
	 June 2009
	  	13.70	%
	 July 2009
	  	14.15	%
	 August 2009
	  	14.35	%
	 September 2009
	  	14.85	%
	 October 2009
	  	15.00	%
	 November 2009
	  	15.15	%
	 December 2009
	  	15.50	%
	 January 2010
	  	15.65	%
	 February 2010
	  	15.85	%
	 March 2010
	  	16.00	%
	 April 2010
	  	16.15	%
	 May 2010
	  	16.35	%
	 June 2010
	  	16.50	%
	 July 2010
	  	16.65	%
	 August 2010
	  	17.00	%
	 September 2010
	  	17.15	%
	 October 2010 and thereafter
	  	17.25	%

  

 5 

 “Level 2 Delinquency Test” means a test that is met if, for each Distribution Date
specified below, the arithmetic average of the monthly Delinquency Ratios for the three immediately preceding Collection Periods is less than or equal to the percentage set forth opposite such Distribution Date: 
  

				
	 Distribution Date occurring
in:
	  	Percentage	 
	 October 2007 through December 2007
	  	2.50	%
	 January 2008 though June 2008
	  	3.00	%
	 July 2008 through December 2008
	  	3.50	%
	 January 2009 though June 2009
	  	4.00	%
	 July 2009 through December 2009
	  	4.50	%
	 January 2010 and thereafter
	  	5.00	%

 “Level 2 Trigger Event” means either of the Level 2 Cumulative Net Loss Test or
the Level 2 Delinquency Test is not met. 
 “Level 3 Cumulative Net Loss Test” means a test that is met if, for each
Distribution Date specified below, the sum of the Cumulative Net Loss Ratio for the related Collection Period plus the Impaired Loan Ratio is less than or equal to the percentage set forth opposite such Distribution Date: 
  

				
	 Distribution Date occurring
in:
	  	Percentage	 
	 October 2007
	  	2.25	%
	 November 2007
	  	2.75	%
	 December 2007
	  	3.50	%
	 January 2008
	  	4.00	%
	 February 2008
	  	4.50	%
	 March 2008
	  	5.25	%
	 April 2008
	  	6.00	%
	 May 2008
	  	6.75	%
	 June 2008
	  	7.50	%

  

 6 

				
	 July 2008
	  	8.00	%
	 August 2008
	  	8.75	%
	 September 2008
	  	9.50	%
	 October 2008
	  	10.25	%
	 November 2008
	  	10.75	%
	 December 2008
	  	11.50	%
	 January 2009
	  	12.00	%
	 February 2009
	  	12.50	%
	 March 2009
	  	13.00	%
	 April 2009
	  	13.50	%
	 May 2009
	  	14.00	%
	 June 2009
	  	14.50	%
	 July 2009
	  	15.00	%
	 August 2009
	  	15.25	%
	 September 2009
	  	15.75	%
	 October 2009
	  	16.25	%
	 November 2009
	  	16.50	%
	 December 2009
	  	17.25	%
	 January 2010
	  	17.75	%
	 February 2010
	  	17.75	%
	 March 2010
	  	18.00	%
	 April 2010
	  	18.25	%
	 May 2010
	  	18.50	%
	 June 2010
	  	18.50	%
	 July 2010
	  	19.00	%
	 August 2010
	  	19.00	%
	 September 2010
	  	19.25	%
	 October 2010
	  	19.50	%
	 November 2010
	  	19.50	%
	 December 2010 and thereafter
	  	19.75	%

  

 7 

 “Level 3 Delinquency Test” means a test that is met if, for each Distribution Date
specified below, the arithmetic average of the monthly Delinquency Ratios for the three immediately preceding Collection Periods is less than or equal to the percentage set forth opposite such Distribution Date: 
  

				
	 Distribution Date occurring
in:
	  	Percentage	 
	 October 2007 through December 2007
	  	3.00	%
	 January 2008 though June 2008
	  	3.50	%
	 July 2008 through December 2008
	  	4.00	%
	 January 2009 though June 2009
	  	4.50	%
	 July 2009 through December 2009
	  	5.00	%
	 January 2010 and thereafter
	  	5.50	%

 “Level 3 Trigger Event” means the occurrence of any one of the following
(A) a Servicer Termination Event, (B) an Insurance Agreement Event of Default, (C) the Level 3 Cumulative Net Loss Test is not met or (D) the Level 3 Delinquency Test is not met. 
 “Liquidation Proceeds” means, with respect to a Liquidated Receivable, all amounts realized with respect to such Receivable including
(1) proceeds from the disposition of the underlying financed vehicles; (2) any related insurance proceeds; (3) other monies received from the obligor that are allocable to principal and interest due under the automobile loan, and
(4) with respect to a Sold Receivable, the related Sale Amount. 
 “Non-Controlling Party” means, at any time, the
Trust Secured Party that is not the Controlling Party at such time. 
 “Outstanding Pool Balance” means the Pool Balance as
of the end of the related Collection Period. 
 “Requisite Amount” means an amount equal to 2.0% of the Original Pool
Balance provided, however, that on each Distribution Date upon which a Level 1 Trigger Event or Level 2 Trigger Event has occurred and is continuing, and upon each Distribution Date thereafter (unless no Level 1 Trigger Event or a
Level 2 Trigger Event has occurred for three consecutive months) the Requisite Amount shall be equal to the greater of (x) 6.0% of the Outstanding Pool Balance and (y) 4.0% of the Original Pool Balance; and provided further,
that on each Distribution Date upon which a Level 3 Trigger Event has occurred and upon each Distribution Date thereafter, the Requisite Amount shall be equal to 100% of the outstanding principal balance of the Notes. 
 “Security Interests” means the security interests and Liens in the Spread Account Agreement Collateral granted pursuant to
Section 2.01. 
  

 8 

 “Seller” means UPFC Auto Financing Corporation. 
 “Specified Impaired Amount” has the meaning ascribed to such term in the Insurance Agreement. 
 “Spread Account” means the account designated as such, established and maintained pursuant to Article III. 
 “Spread Account Agreement Collateral” has the meaning set forth in Section 2.01. 
 “Spread Account Claim Amount” has the meaning set forth in Section 1.1 of the Sale and Servicing Agreement. 
 “Trigger Event” means a Level 1 Trigger Event, a Level 2 Trigger Event or a Level 3 Trigger Event. 
 “Trustee Termination Date” means the date which is the latest of the date on which (i) the Trustee shall have received, as Trustee
for the holders of the Notes, payment and performance in full of all Trustee Trust Secured Obligations and (ii) all payments in respect of the Notes shall have been made and the Indenture shall have been satisfied and discharged pursuant to the
terms of Article IV of the Indenture. 
 “UACC” means United Auto Credit Corporation. 
 “Uniform Commercial Code” or “UCC” means the Uniform Commercial Code in effect in the relevant jurisdiction, as the
same may be amended from time to time. 
 Section 1.02. Other Definitional Provisions. 
 (a) Capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Sale and Servicing Agreement or the
Indenture, as the case may be. 
 (b) The terms “hereof,” “herein” or “hereunder,” unless
otherwise modified by more specific reference, shall refer to this Agreement in its entirety. Unless otherwise indicated in context, the terms “Article,” “Section,” “Appendix,” “Exhibit” or “Annex”
shall refer to an Article or Section of, or Appendix, Exhibit or Annex to, this Agreement. The definition of a term shall include the singular, the plural, the past, the present, the future, the active and the passive forms of such term.

 ARTICLE II 
 THE
SPREAD ACCOUNT AGREEMENT COLLATERAL 
 Section 2.01. Grant of Security Interest by the Issuer. In order to secure the performance
of Trust Secured Obligations, to the extent provided herein, the Issuer hereby pledges, assigns, grants, transfers and conveys to the Collateral Agent, on behalf of and for the 

  

 9 

 
benefit of the Trust Secured Parties, a lien on and security interest in (which lien and security interest is intended to be prior to all other Liens), all
of its right, title and interest in and to the following (all being collectively referred to herein as the “Spread Account Agreement Collateral” and constituting Spread Account Agreement Collateral hereunder): 
 (a) the Spread Account established pursuant to Section 3.01, and each other account owned by the Issuer and maintained by the
Collateral Agent (including, without limitation, the Spread Account Initial Deposit related thereto and all additional monies, checks, securities, investments and other documents from time to time held in or evidencing any such accounts);

 (b) all of the Issuer’s right, title and interest in and to investments made with proceeds of the property described
in clause (a) above, or made with amounts on deposit in the Spread Account; and 
 (c) all distributions, revenues,
products, substitutions, benefits, profits and proceeds, in whatever form, of any of the foregoing whether now owned or hereafter acquired. 
 Section 2.02. Priority. The Issuer intends the security interests in favor of the Trust Secured Parties to be prior to all other Liens in respect of the Spread Account Agreement Collateral, and the Issuer shall take all actions
necessary to obtain and maintain, in favor of the Collateral Agent, for the benefit of the Trust Secured Parties, a first lien on and a first priority, perfected security interest in the Spread Account Agreement Collateral including, without
limitation, the filing of a UCC-1 financing statement relating to the Spread Account Agreement Collateral. Subject to the provisions hereof specifying the rights and powers of the Collateral Agent at the written direction of the Controlling Party
from time to time to control certain specified matters relating to the Spread Account Agreement Collateral, each Trust Secured Party shall have all of the rights, remedies and recourse with respect to the Spread Account Agreement Collateral afforded
a secured party under the Uniform Commercial Code, and all other applicable law in addition to, and not in limitation of, the other rights, remedies and recourse granted to such Trust Secured Parties by this Agreement or any other law relating to
the creation and perfection of liens on, and security interests in, the Spread Account Agreement Collateral. 
 Section 2.03. Issuer
Remains Liable. The Security Interests are granted as security only and shall not (i) transfer or in any way affect or modify, or relieve either the Issuer from, any obligation to perform or satisfy, any term, covenant, condition or
agreement to be performed or satisfied by the Issuer under or in connection with this Agreement, the Insurance Agreement or any other Basic Documents to which it is a party or (ii) impose any obligation on any of the Trust Secured Parties or
the Collateral Agent to perform or observe any such term, covenant, condition or agreement or impose any liability on any of the Trust Secured Parties or the Collateral Agent for any act or omission on its part relative thereto or for any breach of
any representation or warranty on its part contained therein or made in connection therewith, except, in each case, to the extent provided herein and in the other Basic Documents. 
  

 10 

 Section 2.04. Delivery and Maintenance of Spread Account Agreement Collateral. 
 (a) The Collateral Agent agrees to maintain the Spread Account Agreement Collateral received by it (or evidence thereof, in the case of
book-entry securities in the name of the Collateral Agent) and all records and documents relating thereto at the office of the Collateral Agent specified in Section 8.06 or such other address as may be approved by the Controlling Party. The
Collateral Agent shall keep all Spread Account Agreement Collateral and related documentation in its possession separate and apart from all other property that it is holding in its possession and from its own general assets and shall maintain
accurate records pertaining to the Eligible Investments and Spread Account included in the Spread Account Agreement Collateral in such a manner as shall enable the Collateral Agent and the Trust Secured Parties to verify the accuracy of such
record-keeping. The Collateral Agent’s books and records shall at all times show that the Spread Account Agreement Collateral is held by the Collateral Agent as agent of the Trust Secured Parties and is not the property of the Collateral Agent.
The Collateral Agent will promptly report to each Trust Secured Party and the Issuer any failure on its part to hold the Spread Account Agreement Collateral as provided in this Section 2.04(a) and will promptly take appropriate action to remedy
any such failure. 
 (b) The Collateral Agent shall permit each of the Trust Secured Parties, or their respective duly
authorized representatives, attorneys, auditors or designees, to inspect the Spread Account Agreement Collateral in the possession of or otherwise under the control of the Collateral Agent pursuant hereto at such reasonable times during normal
business hours as any such Trust Secured Party may reasonably request upon not less than one Business Day’s prior written notice. The costs and expenses associated with any such inspection will be paid by the party making such inspection.

 (c) All Spread Account Agreement Collateral shall be transferred to the Collateral Agent on behalf of the Trust Secured
Party in a manner consistent with the definition of “Delivery” set forth in the Sale and Servicing Agreement. 
 (d)
Notwithstanding anything to the contrary herein, the Collateral Agent: (i) is and will be acting on behalf of the Trust Secured Parties as a securities intermediary under Article Eight of the UCC and acknowledges that it holds the Spread
Account Agreement Collateral for the benefit of the Trust Secured Parties for purposes of Section 9-313 of the UCC (ii) shall establish and maintain the Spread Account for the benefit of the Trust Secured Parties as a holder of a security
interest in the Spread Account Agreement Collateral and the Spread Account; (iii) shall treat all of the assets in the Spread Account (other than cash) as financial assets under Article Eight of the UCC; (iv) shall not hold, or
exercise control (within the meaning of Article Eight or Nine of the UCC) over, the Spread Account Agreement Collateral and/or the Spread Account for the benefit of any person or entity other than the Trust Secured Parties; (v) has
received notice of the Trust Secured Parties’ interest in the assets contained and/or to be contained in the Spread Account; and (vi) shall take written instructions only from the Trust Secured Party constituting the Controlling Party
hereunder (without any consent of and notwithstanding any alternate direction of the Issuer) with respect to the Spread Account and/or the Spread Account Agreement Collateral, including, without limitation, all instructions with respect to the
acquisition, transfer and disposition of assets in the Spread Account and the proceeds thereof. In accordance with the choice of law governing this Agreement set forth in Section 8.14 herein, for purposes of Article Eight of the UCC the
jurisdiction of the Collateral Agent is deemed to be New York. 
  

 11 

 Section 2.05. Termination and Release of Rights. 
 (a) On the Insurer Termination Date, the rights, remedies, powers, duties, authority and obligations conferred upon the Insurer pursuant
to this Agreement in respect of the Spread Account Agreement Collateral shall terminate and be of no further force and effect and all rights, remedies, powers, duties, authority and obligations of the Insurer with respect to such Spread Account
Agreement Collateral shall be automatically released; provided that any indemnity provided to or by the Insurer herein shall survive such Insurer Termination Date. If the Insurer is acting as Controlling Party on the related Insurer Termination
Date, the Insurer agrees, at the expense of the Issuer, to execute and deliver such instruments as the successor Controlling Party may reasonably request to effectuate such release, and any such instruments so executed and delivered shall be fully
binding on the Insurer and any Person claiming by, through or under the Insurer. 
 (b) On the Trustee Termination Date, the
rights, remedies, powers, duties, authority and obligations, if any, conferred upon the Trustee pursuant to this Agreement in respect of the Spread Account Agreement Collateral shall terminate and be of no further force and effect and all such
rights, remedies, powers, duties, authority and obligations of the Trustee with respect to such Spread Account Agreement Collateral shall be automatically released; provided that any indemnity provided to the Trustee herein shall survive such
Trustee Termination Date. If the Trustee is acting as Controlling Party on the related Trustee Termination Date, the Trustee agrees, at the expense of the Issuer, to execute and deliver such instruments as the Issuer may reasonably request to
effectuate such release, and any such instruments so executed and delivered shall be fully binding on the Trustee. 
 (c) On
the Final Termination Date, the rights, remedies, powers, duties, authority and obligations conferred upon the Collateral Agent and each Trust Secured Party pursuant to this Agreement shall terminate and be of no further force and effect and all
rights, remedies, powers, duties, authority and obligations of the Collateral Agent and each Trust Secured Party with respect to the Spread Account Agreement Collateral shall be automatically released. On the Final Termination Date, the Collateral
Agent agrees, and each Trust Secured Party agrees, at the expense of the Issuer, to execute such instruments of release, in recordable form if necessary, in favor of the Issuer as the Issuer may reasonably request, to deliver any Spread Account
Agreement Collateral in its possession to the Issuer, and to otherwise release the lien of this Agreement and release and deliver to the Issuer the Spread Account Agreement Collateral. 
 Section 2.06. Non-Recourse Obligations of Issuer. Notwithstanding anything herein or in the other Basic Documents to the contrary, the parties
hereto agree that the obligations of the Issuer hereunder shall be recourse only to the extent of amounts released to the Issuer pursuant to Section 3.03(b)(ii) and retained by the Issuer in accordance with the next sentence. The Issuer agrees
that it shall not declare or make any payment to the Seller or UACC except in accordance with the Basic Documents. Nothing contained herein shall be deemed to limit the rights of the Noteholders under any other Basic Document. 
  

 12 

 ARTICLE III 
 SPREAD ACCOUNT 
 Section 3.01. Establishment of Spread Account; Initial Deposit into Spread
Account; Maintenance of Spread Account. 
 (a) On or prior to the Closing Date, the Collateral Agent shall establish, at
its office or at another depository institution or trust company an Eligible Deposit Account, designated, “Spread Account—Deutsche Bank Trust Company Americas, as Collateral Agent for MBIA Insurance Corporation and Deutsche Bank Trust
Company Americas, as Trustee and Trust Collateral Agent Re: UPFC Auto Receivables Trust 2007-A Class A Asset Backed Notes Series 2007-A” (the “Spread Account”). The Spread Account shall be maintained by the Collateral Agent at
all times separate and apart from any other account of UACC, the Seller, the Servicer or the Issuer. If the Spread Account ceases to be an Eligible Deposit Account, the Collateral Agent shall notify the Controlling Party of such fact and shall
establish within five Business Days of such determination, in accordance with Section 3.04(a), a successor Spread Account thereto, which shall be an Eligible Deposit Account, at another depository institution acceptable to the Controlling
Party. 
 (b) No withdrawals may be made of funds in the Spread Account except as provided in Section 3.03. Except as
specifically provided in this Agreement, funds in the Spread Account shall not be commingled with any other moneys. All moneys deposited from time to time in the Spread Account and all investments made with such moneys shall be held by the
Collateral Agent as part of the Spread Account Agreement Collateral. 
 (c) On the Closing Date, Issuer shall provide or cause
to be provided to the Collateral Agent for deposit into the Spread Account an amount equal to the Spread Account Initial Deposit. 
 (d) On each Distribution Date, after giving effect to all payments to be made on the related Distribution Date, the Collateral Agent shall based solely on the Servicer’s Certificate delivered with respect to the Determination Date
cause to be maintained in the Spread Account an amount equal to the Requisite Amount in accordance with Section 5.07 of the Sale and Servicing Agreement. 
 Section 3.02. Investments. 
 (a) Funds which may at any time be held in the Spread
Account shall be invested and reinvested by the Collateral Agent, at the written direction (which may include, subject to the provisions hereof, general standing instructions) of the Issuer (unless a Default shall have occurred and be continuing, in
which case at the written direction of the Controlling Party if it so elects) or its designee received by the Collateral Agent by 1:00 p.m. New York City time, on the Business Day prior to the date on which 

  

 13 

 
such investment shall be made, in one or more Eligible Investments in the manner specified in Section 3.02(b) and (c). If no written direction with
respect to any portion of such Spread Account is received by the Collateral Agent, the Collateral Agent shall invest such funds overnight in money market mutual funds described in paragraph (d) of the definition of the term “Eligible
Investments,” provided that the Collateral Agent shall not be liable for any loss or absence of income resulting from such investments. 
 (b) Each investment made pursuant to this Section on any date shall mature not later than the Business Day immediately preceding the Distribution Date next succeeding the day such investment is made or payable on
demand, provided that any investment of funds in the Spread Account maintained with the Collateral Agent in any investment as to which the Collateral Agent is the obligor, if otherwise qualified as an Eligible Investment may mature on the
Distribution Date next succeeding the date of such investment. 
 (c) Subject to the other provisions hereof, the Collateral
Agent shall have sole control over each such investment and the income thereon, and any certificate or other instrument evidencing any such investment, if any, shall be delivered directly to the Collateral Agent or its agent, together with each
document of transfer, if any, necessary to transfer title to such investment to the Collateral Agent in a manner which complies with Section 2.04 and the requirements of the definition of “Eligible Investments.” 
 (d) If amounts on deposit in the Spread Account are at any time invested in an Eligible Investment payable on demand, the Collateral Agent
shall (i) consistent with any notice required to be given thereunder, demand that payment thereon be made on the last day such Eligible Investment is permitted to mature under the provisions hereof and (ii) demand payment of all amounts
due thereunder promptly upon receipt of written notice from the Controlling Party to the effect that such investment does not constitute an Eligible Investment. 
 (e) All moneys on deposit in the Spread Account, together with any deposits or securities in which such moneys may be invested or
reinvested, and any gains from such investments, shall constitute Spread Account Agreement Collateral hereunder subject to the Security Interests of the Trust Secured Parties. 
 (f) Subject to Section 4.03, the Collateral Agent shall not be liable by reason of any insufficiency in amounts on deposit in the
Spread Account resulting from any loss on any Eligible Investment included therein except for losses attributable to the failure of the relevant Deutsche Bank entity, in its commercial capacity, to make payments on Eligible Investments as to which
it, is obligated. All income or loss on investments of funds in the Spread Account shall be reported by UACC as taxable income or loss. 
 Section 3.03. Payments; Priority of Payments. 
 (a) On or before the second Business Day prior to each
Distribution Date, the Collateral Agent will make the following determinations on the basis of information (including, without limitation, the amount of any Spread Account Claim Amount) 

  

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received pursuant to Article IV of the Sale and Servicing Agreement from the Servicer; provided, however, that if the Collateral Agent receives written
notice from the Insurer, the Trustee, the Issuer or the Servicer of the occurrence of an Insurance Agreement Event of Default, such notice shall be determinative for the purposes of determining the Requisite Amount: 
 (i) determine the amounts to be on deposit in the Spread Account on such Distribution Date which will be available to satisfy any Spread
Account Claim Amount; and 
 (ii) determine (A) the amounts, if any, to be paid from the Spread Account with respect to
the Spread Account Claim Amount and (B) whether, following payment from the Spread Account to the Trust Collateral Agent for deposit into the Collection Account, a Spread Account Claim Amount will continue to exist. 
 On such Distribution Date, the Collateral Agent shall deliver a certificate to the Trust Collateral Agent and the Insurer with respect to any Deficiency
Notice, stating the amount, if any, to be distributed to the Trust Collateral Agent on that Distribution Date in respect of such Spread Account Claim Amount. 
 (b) On each Distribution Date, the Collateral Agent shall make the following payments from the Spread Account (to the extent of funds
available in the Spread Account) in the following order of priority: 
 (i) if the Trust Collateral Agent has delivered a
Deficiency Notice and if there exists a Spread Account Claim Amount, to the Trust Collateral Agent for deposit in the Collection Account the amount of such Spread Account Claim Amount; and 
 (ii) any funds in the Spread Account in excess of the Requisite Amount, after making the withdrawals therefrom required by clause
(i) of this Section 3.03(b) (to the extent of funds available in excess of the Requisite Amount) and any funds remaining in the Spread Account as of the Distribution Date immediately following the Final Termination Date will be applied by
the Collateral Agent in the following order of priority: 
 (A) to the payment of any expenses payable pursuant to
Section 4.5 of the Sale and Servicing Agreement to the extent not paid by the Servicer; 
 (B) to the Trust Collateral
Agent for payment to any replacement servicer any accrued and unpaid replacement servicer fees, transition costs or additional compensation to the extent not paid pursuant to the Sale and Servicing Agreement; 
  

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 (C) to the Trust Collateral Agent for payment to the Insurer, any amounts due and owing
to the Insurer that were not paid under Section 5.7(b)(viii) of the Sale and Servicing Agreement; 
 (D) to the Trustee,
the Trust Collateral Agent, the Backup Servicer, the Custodian, the Collateral Agent and the Designated Backup Subservicer, any fees, expenses or additional compensation to the extent not paid pursuant to the Sale and Servicing Agreement;

 (E) to the Backup Servicer, any indemnification amounts payable by the Servicer to the Backup Servicer to the extent not
paid by the Servicer; and 
 (F) to the holder(s) of the Certificates, any remaining funds in the Spread Account in excess of
the Requisite Amount. 
 Section 3.04. General Provisions Regarding Spread Account. 
 (a) Promptly upon the establishment (initially or upon any relocation) of the Spread Account hereunder, the Collateral Agent shall advise
the Issuer and each Trust Secured Party in writing of the name and address of the depository institution or trust company where the Spread Account has been established (if not at Deutsche Bank Trust Company Americas or any successor Collateral Agent
in its commercial banking capacity), the name of the officer of the depository institution who is responsible for overseeing the Spread Account, the account number and the individuals whose names appear on the signature cards for the Spread Account.
The Issuer shall cause each such depository institution or trust company to execute a written agreement, in form and substance reasonably satisfactory to the Controlling Party, waiving, and the Collateral Agent, by its execution of this Agreement
hereby waives (except to the extent expressly provided herein), in each case to the extent permitted under applicable law, (i) any banker’s or other statutory or similar Lien, and (ii) any right of set-off or other similar right under
applicable law with respect to the Spread Account and agreeing, and the Collateral Agent by its execution of this Agreement hereby agrees to notify the Issuer and each Trust Secured Party of any charge or claim against or with respect to such Spread
Account. The Collateral Agent shall give the Issuer and each Trust Secured Party at least ten Business Days’ prior written notice of any change in the location of the Spread Account or in any related account information. Anything herein to the
contrary notwithstanding, unless otherwise consented to by the Controlling Party in writing, the Collateral Agent shall have no right to change the location of the Spread Account 
 (b) Upon the written request of the Controlling Party or the Issuer, the Collateral Agent shall cause, at the expense of the Issuer, the
depository institution at which the Spread Account is located to forward to the requesting party copies of all monthly account statements for the Spread Account. 
  

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 (c) No passbook, certificate of deposit or other similar instrument evidencing the Spread
Account shall be issued, and all contracts, receipts and other papers, if any, governing or evidencing the Spread Account shall be held by the Collateral Agent. 
 Section 3.05. Reports by the Collateral Agent. The Collateral Agent shall report to the Issuer, the Insurer, the Trustee (unless the Trustee is the same party as the Collateral Agent), the Trust Collateral
Agent (unless the Trust Collateral Agent is the same party as the Collateral Agent) and the Servicer, on a monthly basis no later than each Distribution Date, the amount on deposit in the Spread Account and the identity of the investments included
therein as of the last day of the related Collection Period, and shall provide accountings of deposits into and withdrawals from the Spread Account, and of the investments made therein, upon the request of the Issuer, the Insurer or the Servicer.

 ARTICLE IV 
 THE
COLLATERAL AGENT 
 Section 4.01. Appointment and Powers. Subject to the terms and conditions hereof, each of the Trust Secured
Parties hereby appoints Deutsche Bank Trust Company Americas as the Collateral Agent with respect to the Spread Account Agreement Collateral, and Deutsche Bank Trust Company Americas hereby accepts such appointment and agrees to act as Collateral
Agent with respect to the Spread Account Agreement Collateral, for the Trust Secured Parties, to maintain custody and possession of such Spread Account Agreement Collateral (except as otherwise provided hereunder) and to perform the other duties of
the Collateral Agent in accordance with the provisions of this Agreement. Each Trust Secured Party hereby authorizes the Collateral Agent to take such action on its behalf, and to exercise such rights, remedies, powers and privileges hereunder, as
the Controlling Party may direct and as are specifically authorized to be exercised by the Collateral Agent by the terms hereof, together with such actions, rights, remedies, powers and privileges as are reasonably incidental thereto. The Collateral
Agent shall act (and shall be completely protected in so acting) upon and in compliance with the written instructions of the Controlling Party delivered pursuant to this Agreement promptly following receipt of such written instructions; provided
that the Collateral Agent shall not act in accordance with any instructions (i) which are not authorized by, or in violation of the provisions of, this Agreement, (ii) which are in violation of any applicable law, rule or regulation or
(iii) for which the Collateral Agent has not received reasonable indemnity. Receipt of such instructions shall not be a condition to the exercise by the Collateral Agent of its express duties hereunder, except where this Agreement provides that
the Collateral Agent is permitted to act only following and in accordance with such instructions. 
 Section 4.02. Performance of
Duties. The Collateral Agent shall have no duties or responsibilities except those expressly set forth in this Agreement and the other Basic Documents to which the Collateral Agent is a party or as directed by the Controlling Party in accordance
with this Agreement. The Collateral Agent shall not be required to take any discretionary actions hereunder except at the written direction and with indemnification satisfactory to it from the Controlling Party. 
  

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 Section 4.03. Limitation on Liability. Neither the Collateral Agent nor any of its directors,
officers or employees shall be liable for any action taken or omitted to be taken by it or them hereunder, or in connection herewith, except that the Collateral Agent shall be liable for its negligence, bad faith or willful misconduct; nor shall the
Collateral Agent be responsible for the validity, effectiveness, value, sufficiency or enforceability against the Issuer of this Agreement or any of the Spread Account Agreement Collateral (or any part thereof). Notwithstanding any term or provision
of this Agreement, the Collateral Agent shall incur no liability to the Issuer or the Trust Secured Parties for any action taken or omitted by the Collateral Agent in connection with the Spread Account Agreement Collateral, except for the negligence
or willful misconduct on the part of the Collateral Agent, and, further, shall incur no liability to the Trust Secured Parties except for negligence or willful misconduct in carrying out its duties to the Trust Secured Parties. Subject to
Section 4.04, the Collateral Agent shall be completely protected and shall incur no liability to any such party in relying upon the accuracy, acting in reliance upon the contents, and assuming the genuineness of any notice, demand, certificate,
signature, instrument or other document reasonably believed by the Collateral Agent to be genuine and to have been duly executed by the appropriate signatory, and (absent actual knowledge to the contrary) the Collateral Agent shall not be required
to make any independent investigation with respect thereto. The Collateral Agent shall at all times be free independently to establish to its reasonable satisfaction, but shall have no duty to independently verify, the existence or nonexistence of
facts that are a condition to the exercise or enforcement of any right or remedy hereunder or under any of the Basic Documents. The Collateral Agent may consult with counsel selected by it with due care, and shall not be liable for any action taken
or omitted to be taken by it hereunder in good faith and in accordance with the advice of such counsel. The Collateral Agent shall not be under any obligation to exercise any of the remedial rights or powers vested in it by this Agreement or to
follow any direction from the Controlling Party unless it shall have received reasonable security or indemnity satisfactory to the Collateral Agent against the costs, expenses and liabilities which might be incurred by it. 
 Section 4.04. Reliance upon Documents. In the absence of bad faith or negligence on its part, the Collateral Agent shall be entitled to rely on
any communication, instrument, paper or other document reasonably believed by it to be genuine and correct and to have been signed or sent by the proper Person or Persons and shall have no liability in acting, or omitting to act, where such action
or omission to act is in reasonable reliance upon any statement or opinion contained in any such document or instrument. 
 Section 4.05.
Successor Collateral Agent. 
 (a) Any Person into which the Collateral Agent may be converted or merged, or with which it
may be consolidated, or to which it may sell or transfer its trust business and assets as a whole, or substantially as a whole, or any Person resulting from any such conversion, merger, consolidation, sale or transfer to which the Collateral Agent
is a party, shall (provided it is otherwise qualified to serve as the Collateral Agent hereunder and is acceptable to the Insurer) be and become a successor Collateral Agent hereunder and be vested with all of the title to and interest in the Spread
Account Agreement Collateral and all of the trusts, powers, discretions, immunities, privileges and other matters as was its predecessor without the execution or filing of any instrument or any further act, deed or conveyance on the part of any of
the parties hereto, anything herein to 

  

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the contrary notwithstanding, except to the extent, if any, that any such action is necessary to perfect, or continue the perfection of, the security
interest of the Trust Secured Parties in the Spread Account Agreement Collateral. 
 (b) The Collateral Agent and any
successor Collateral Agent may resign only (i) upon a determination that by reason of a change in legal requirements the performance of its duties under this Agreement would cause it to be in violation of such legal requirements in a manner
which would result in a material adverse effect on the Collateral Agent as evidenced by an Opinion of Counsel delivered to the Insurer, and the Controlling Party does not elect to waive the Collateral Agent’s obligation to perform those duties
which render it legally unable to act or elect to delegate those duties to another Person, or (ii) with the prior written consent of the Controlling Party. The Collateral Agent shall give not less than 45 days’ prior written notice of any
such permitted resignation by registered or certified mail to the other Trust Secured Party and the Issuer; provided, that such resignation shall take effect only upon the date which is the latest of (A) the effective date of the appointment of
a successor Collateral Agent acceptable to the Insurer (provided that an Insurer Default has not occurred and is continuing) and the acceptance in writing by such successor Collateral Agent of such appointment and of its obligation to perform its
duties hereunder in accordance with the provisions hereof, (B) delivery of the Collateral to such successor to be held in accordance with the procedures specified in Article II, and (C) receipt by the Controlling Party of an Opinion
of Counsel to the effect described in Section 5.05. Notwithstanding the preceding sentence, if by the contemplated date of resignation specified in the written notice of resignation delivered as described above no successor Collateral Agent or
temporary successor Collateral Agent has been appointed Collateral Agent or becomes the Collateral Agent pursuant to Section 4.05(d), the resigning Collateral Agent may petition a court of competent jurisdiction in New York, New York for the
appointment of a successor acceptable to the Insurer (provided that an Insurer Default has not occurred and is continuing). Notwithstanding anything herein to the contrary, if the Trustee, the Trust Collateral Agent and Collateral Agent are the same
party and the Trustee or the Trust Collateral Agent resigns under the Indenture, the Collateral Agent may resign in accordance with the procedures for resignation of the Trustee and the Trust Collateral Agent under the Indenture. 
 (c) The Collateral Agent may be removed by the Controlling Party at any time, with or without cause, by an instrument or concurrent
instruments in writing delivered to the Collateral Agent, the other Trust Secured Party and the Issuer. A temporary successor may be removed at any time to allow a successor Collateral Agent to be appointed pursuant to Section 4.05(d). Any
removal pursuant to the provisions of this subsection (c) shall take effect only upon the date which is the latest of (i) the effective date of the appointment of a successor Collateral Agent acceptable to the Insurer (provided that an
Insurer Default has not occurred and is continuing) and the acceptance in writing by such successor Collateral Agent of such appointment and of its obligation to perform its duties hereunder in accordance with the provisions hereof,
(ii) delivery of the Spread Account Agreement Collateral to such successor to be held in accordance with the procedures specified in Article II and (iii) receipt by the Controlling Party of an Opinion of Counsel to the effect
described in Section 5.05. 
  

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 (d) The Controlling Party shall have the sole right to appoint each successor Collateral
Agent. Every temporary or permanent successor Collateral Agent appointed hereunder shall execute, acknowledge and deliver to its predecessor and to each Trust Secured Party and the Issuer an instrument in writing accepting such appointment hereunder
and the relevant predecessor shall execute, acknowledge and deliver such other documents and instruments as will effectuate the delivery of all Spread Account Agreement Collateral to the successor Collateral Agent to be held in accordance with the
procedures specified in Article II, whereupon such successor, without any further act, deed or conveyance, shall become fully vested with all the estates, properties, rights, powers, duties and obligations of its predecessor. Such predecessor
shall, nevertheless, on the written request of either Trust Secured Party or the Issuer, execute and deliver an instrument transferring to such successor all the estates, properties, rights and powers of such predecessor hereunder. In the event that
any instrument in writing from the Issuer or a Trust Secured Party is reasonably required by a successor Collateral Agent to more fully and certainly vest in such successor the estates, properties, rights, powers, duties and obligations vested or
intended to be vested hereunder in the Collateral Agent, any and all such written instruments shall, at the request of the temporary or permanent successor Collateral Agent, be forthwith executed, acknowledged and delivered by the Issuer. The
designation of any successor Collateral Agent and the instrument or instruments removing any Collateral Agent and appointing a successor hereunder, together with all other instruments provided for herein, shall be maintained with the records
relating to the Spread Account Agreement Collateral and, to the extent required by applicable law, filed or recorded by the successor Collateral Agent in each place where such filing or recording is necessary to effect the transfer of the Spread
Account Agreement Collateral to the successor Collateral Agent or to protect or continue the perfection of the security interests granted hereunder. 
 Section 4.06. Indemnification. The Seller shall indemnify the Collateral Agent, its directors, officers, employees and agents for, and hold the Collateral Agent, its directors, officers, employees and agents
harmless against, any loss, liability or expense (including the fees and expenses of Counsel and the costs and expenses of defending against any claim of liability) arising out of or in connection with the Collateral Agent’s acting as
Collateral Agent hereunder, except such loss, liability or expense as shall result from the negligence, bad faith or willful misconduct of the Collateral Agent. The obligation of the Seller under this Section 4.06 shall survive the termination
of this Agreement and the resignation or removal of the Collateral Agent or the Servicer. 
 Section 4.07. Compensation and
Reimbursement. The Seller agrees for the benefit of the Trust Secured Parties to pay to the Collateral Agent, the Collateral Agent Fee for all services rendered by it hereunder (which compensation shall not be limited by any provision of law in
regard to the compensation of a collateral trustee) and to reimburse the Collateral Agent for any reasonable and out of pocket expenses (including reasonable legal fees and expenses but excluding any expenses resulting from the gross negligence, bad
faith, or willful misconduct of the Collateral Agent) incurred in connection with the duties contemplated herein. 
  

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 Section 4.08. Representations and Warranties of the Collateral Agent. The Collateral Agent
represents and warrants to the Issuer and to each Trust Secured Party as follows: 
 (a) Due Organization. The
Collateral Agent is a banking corporation, duly organized, validly existing and in good standing under the laws of the State of New York and is duly authorized and licensed under applicable law to conduct its business as presently conducted.

 (b) Corporate Power. The Collateral Agent has all requisite right, power and authority to execute and deliver
this Agreement and to perform all of its duties as Collateral Agent hereunder. 
 (c) Due Authorization. The
execution and delivery by the Collateral Agent of this Agreement and the other Basic Documents to which it is a party, and the performance by the Collateral Agent of its duties hereunder and thereunder, have been duly authorized by all necessary
corporate proceedings and no further approvals or filings, including any governmental approvals, are required for the valid execution and delivery by the Collateral Agent, or the performance by the Collateral Agent, of this Agreement and such other
Basic Documents. 
 (d) Valid and Binding Agreement. The Collateral Agent has duly executed and delivered this
Agreement and each other Basic Document to which it is a party, and each of this Agreement and each such other Basic Document constitutes the legal, valid and binding obligation of the Collateral Agent, enforceable against the Collateral Agent in
accordance with its terms, except as (i) such enforceability may be limited by bankruptcy, insolvency, reorganization and similar laws relating to or affecting the enforcement of creditors’ rights generally and (ii) the availability
of equitable remedies may be limited by equitable principles of general applicability. 
 Section 4.09. Waiver of Setoffs. The
Collateral Agent hereby expressly waives any and all rights of set off that the Collateral Agent may otherwise at any time have under applicable law with respect to the Spread Account and agrees that amounts in the Spread Account shall at all times
be held and applied solely in accordance with the provisions hereof. 
 Section 4.10. Control by the Controlling Party. The Collateral
Agent shall comply with notices and instructions given by the Issuer only if accompanied by the written consent of the Controlling Party, except that if any Default shall have occurred and be continuing, the Collateral Agent shall act upon and
comply with notices and instructions given by the Controlling Party alone in the place and stead of the Issuer. 
 Section 4.11.
Limitation of Liability. 
 (a) In no event shall the Trustee, Trust Collateral Agent or the Collateral Agent be liable
for any indirect, special, punitive or consequential loss or damage of any kind whatsoever, including, but not limited to, lost profits, even if the Trustee, Trust Collateral Agent or the Collateral Agent have been advised of the likelihood of such
loss or damage and regardless of the form of action. 
  

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 (b) In no event shall the Trustee, Trust Collateral Agent or the Collateral Agent be
liable for any failure or delay in the performance of its obligations hereunder because of circumstances beyond their control, including, but not limited to, acts of God, flood, war (whether declared or undeclared), terrorism, fire, riot, embargo,
government action, including any laws, ordinances, regulations, governmental action or the like which delay, restrict or prohibit the providing of the services contemplated by this Agreement. 
 ARTICLE V 
 COVENANTS OF THE ISSUER 
 Section 5.01. Preservation of Spread Account Agreement Collateral. Subject to the rights, powers and authorities granted to the Collateral Agent
and the Controlling Party in this Agreement, the Issuer shall take such action as is necessary and proper with respect to the Spread Account Agreement Collateral in order to preserve and maintain such Spread Account Agreement Collateral and to cause
(subject to the rights of the Trust Secured Parties) the Collateral Agent to perform its obligations with respect to such Spread Account Agreement Collateral as provided herein including, without limitation, filing UCC-1s on the Spread Account and
investments therein. The Issuer will do, execute, acknowledge and deliver, or cause to be done, executed, acknowledged and delivered, such instruments of transfer or take such other steps or actions as may be necessary, or required by the
Controlling Party, to perfect the Security Interests granted hereunder in the Spread Account Agreement Collateral, to ensure that such Security Interests rank prior to all other Liens and to preserve the priority of such Security Interests and the
validity and enforceability thereof. 
 Section 5.02. Notices. In the event that the Issuer acquires knowledge of the occurrence and
continuance of any Insurance Agreement Event of Default or Event of Default under the Indenture or of any event of default or like event, howsoever described or called, under any of the Basic Documents, the Issuer shall immediately give notice
thereof to the Collateral Agent and each Trust Secured Party. 
 Section 5.03. Waiver of Stay or Extension Laws; Marshalling of
Assets. The Issuer covenants, to the fullest extent permitted by applicable law, that it will not at any time insist upon, plead or in any manner whatsoever claim or take the benefit or advantage of, any appraisement, valuation, stay, extension
or redemption law wherever enacted, now or at any time hereafter in force, in order to prevent or hinder the enforcement of this Agreement or any absolute sale of the Spread Account Agreement Collateral or any part thereof, or the possession thereof
by any purchaser at any sale under Article VII; and the Issuer, to the fullest extent permitted by applicable law, for itself and all who may claim under it, hereby waives the benefit of all such laws, and covenants that it will not hinder,
delay or impede the execution of any power herein granted to the Collateral Agent, but will suffer and permit the execution of every such power as though no such law had been enacted. The Issuer, for itself and all who may claim under it, waives, to
the fullest extent permitted by applicable law, all right to have the Spread Account Agreement Collateral marshaled upon any foreclosure or other disposition thereof. 
  

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 Section 5.04. Noninterference, etc. The Issuer shall not (i) waive or alter any of its rights
under the Spread Account Agreement Collateral (or any agreement or instrument relating thereto) without the prior written consent of the Controlling Party, (ii) fail to pay any tax, assessment, charge or fee levied or assessed against the
Spread Account Agreement Collateral, or to defend any action, if such failure to pay or defend may adversely affect the priority or enforceability of the Issuer’s right, title or interest in and to the Spread Account Agreement Collateral or the
Collateral Agent’s lien on, and security interest in, the Spread Account Agreement Collateral for the benefit of the Trust Secured Parties or (iii) take any action, or fail to take any action, if such action or failure to take action will
interfere with the enforcement of any rights under the Basic Documents. 
 Section 5.05. Issuer Changes 
 (a) Change in Name, Structure, etc. The Issuer shall not change its name, identity or corporate structure unless it shall
have given each Trust Secured Party and the Collateral Agent at least 30 days’ prior written notice thereof, shall have effected any necessary or appropriate assignments or amendments thereto and filings of financing statements or amendments
thereto. 
 (b) Relocation of the Issuer. The Issuer shall not change its principal executive office or
jurisdiction of organization unless it gives each Trust Secured Party and the Collateral Agent at least 30 days’ prior written notice of any relocation of its principal executive office. If the Issuer relocates its principal executive office,
jurisdiction of organization or principal place of business from Delaware, the Issuer shall give prior notice thereof to the Controlling Party and the Collateral Agent and shall effect whatever appropriate recordations and filings are necessary and
shall provide an Opinion of Counsel to the Controlling Party and the Collateral Agent, to the effect that, upon the recording of any necessary assignments or amendments to previously-recorded assignments and filing of any necessary amendments to the
previously filed financing or continuation statements or upon the filing of one or more specified new financing statements, and the taking of such other actions as may be specified in such opinion, the security interests in the Spread Account
Agreement Collateral shall remain, after such relocation, valid and perfected. 
 ARTICLE VI 
 CONTROLLING PARTY; INTERCREDITOR PROVISIONS 
 Section 6.01. Appointment of Controlling Party. From and after the Closing Date until the Insurer Termination Date, the Insurer shall be the Controlling Party and shall be entitled to exercise all the rights given the Controlling
Party hereunder. From and after the Insurer Termination Date until the Trustee Termination Date, the Trustee shall be the Controlling Party. Notwithstanding the foregoing, in the event that an Insurer Default shall have occurred and be continuing,
the Trustee shall be the Controlling Party until the applicable Trustee Termination Date. If prior to an Insurer Termination Date the Trustee shall have become the Controlling Party as a result of the occurrence of an Insurer Default and either such
Insurer Default is cured or for any other reason ceases to exist or the Trustee Termination Date occurs, then upon such 

  

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cure or other cessation or on such Trustee Termination Date, as the case may be, the Insurer shall, upon written notice thereof being duly given to the
Collateral Agent, again be the Controlling Party. 
 Section 6.02. Controlling Party’s Authority. 
 (a) The Issuer hereby irrevocably appoints the Collateral Agent, and any successor to the Collateral Agent appointed pursuant to
Section 4.05, its true and lawful attorney, with full power of substitution, in the name of the Issuer, the Trust Secured Parties or otherwise, but (subject to Section 2.06) at the expense of the Issuer, to the extent permitted by law to
exercise, at any time and from time to time while any Insurance Agreement Event of Default has occurred but at all such times at the written direction of the Controlling Party, any or all of the following powers with respect to all or any of the
Spread Account Agreement Collateral: (i) to demand, sue for, collect, receive and give acquittance for any and all monies due or to become due upon or by virtue thereof, (ii) to settle, compromise, compound, prosecute or defend any action
or proceeding with respect thereto, (iii) to sell, transfer, assign or otherwise deal with the same or the proceeds thereof as fully and effectively as if the Collateral Agent were the absolute owner thereof, and (iv) to extend the time of
payment of any or all thereof and to make any allowance or other adjustments with respect thereto. 
 (b) With respect to the
Notes and the related Spread Account Agreement Collateral, each Trust Secured Party hereby irrevocably and unconditionally constitutes and appoints the Collateral Agent, and any successor to such Collateral Agent appointed pursuant to
Section 4.05 from time to time, as the true and lawful attorney-in-fact of the Trust Secured Parties, with full power of substitution, to execute, acknowledge and deliver any notice, document, certificate, paper, pleading or instrument and to
do in the name of the Collateral Agent as well as in the name, place and stead of such Trust Secured Party such acts, things and deeds for and on behalf of and in the name of the Trust Secured Parties under this Agreement which the Trust Secured
Parties could or might do or which may be necessary, desirable or convenient in the Collateral Agent’s sole discretion with the prior written consent of the Controlling Party or at the direction of the Controlling Party to effect the purposes
contemplated hereunder and, without limitation, exercise full right, power and authority to take, or defer from taking, any and all acts with respect to the administration of the Spread Account Agreement Collateral, and the enforcement of the rights
of the Trust Secured Parties hereunder, on behalf of and for the benefit of the Trust Secured Parties, as their interests may appear. 
 Section 6.03. Rights of Trust Secured Parties. With respect to the Notes and the related Spread Account Agreement Collateral, the Non-Controlling Party at any time expressly agrees that it shall not assert any rights that it may
otherwise have, as a Trust Secured Party with respect to the Spread Account Agreement Collateral, to direct the maintenance, sale or other disposition of the Spread Account Agreement Collateral or any portion thereof, notwithstanding the occurrence
and continuance of any Default or any non-performance by the Issuer of any obligation owed to such Trust Secured Party hereunder or under any other Basic Document, and each party hereto agrees that the Collateral Agent, at the direction of the
Controlling Party shall be the only Person entitled to assert and exercise such rights. 
  

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 Section 6.04. Degree of Care. 
 (a) Collateral Agent. Notwithstanding any term or provision of this Agreement, the Collateral Agent shall incur no liability
to the Issuer for any action taken or omitted by the Collateral Agent in connection with the Spread Account Agreement Collateral, except for any negligence, bad faith or willful misconduct on the part of the Collateral Agent and, further, shall
incur no liability to the Non-Controlling Party except for the negligence, bad faith or willful misconduct of the Collateral Agent in carrying out its duties, if any, to the Non-Controlling Party. The Collateral Agent shall be completely protected
and shall incur no liability to any such party in relying upon the accuracy, acting in reliance upon the contents and assuming the genuineness of any notice, demand, certificate, signature, instrument or other document believed by the Collateral
Agent to be genuine and to have been duly executed by the appropriate signatory, and (absent manifest error or actual knowledge to the contrary) the Collateral Agent shall not be required to make any independent investigation with respect thereto.
The Collateral Agent shall, at all times, be free independently to establish to its reasonable satisfaction the existence or nonexistence, as the case may be, of any fact the existence or nonexistence of which shall be a condition to the exercise or
enforcement of any right or remedy under this Agreement or any of the Basic Documents. 
 (b) Controlling Party.
Notwithstanding any term or provision of this Agreement, the Controlling Party shall incur no liability to the Issuer, Seller, Servicer or any secured party for any action taken or omitted by the Controlling Party in connection with the
Spread Account Agreement Collateral, except for any negligence, bad faith or willful misconduct on the part of the Controlling Party and, further, shall incur no liability to the Non-Controlling Party except for a breach of the terms of this
Agreement or for negligence, bad faith or willful misconduct in carrying out its duties, if any, to the Non-Controlling Party. The Controlling Party shall be protected and shall incur no liability to any such party in relying upon the accuracy,
acting in reliance upon the contents and assuming the genuineness of any notice, demand, certificate, signature, instrument or other document believed by the Controlling Party to be genuine and to have been duly executed by the appropriate
signatory, and (absent manifest error or actual knowledge to the contrary) the Controlling Party shall not be required to make any independent investigation with respect thereto. The Controlling Party shall, at all times, be free independently to
establish to its reasonable satisfaction the existence or nonexistence, as the case may be, of any fact the existence or nonexistence of which shall be a condition to the exercise or enforcement of any right or remedy under this Agreement or any of
the Basic Documents. 
 (c) The Non-Controlling Party. The Non-Controlling Party shall not be liable to the
Issuer for any action or failure to act by the Controlling Party or the Collateral Agent in exercising, or failing to exercise, any rights or remedies hereunder. 
  

 25 

 ARTICLE VII 
 REMEDIES UPON DEFAULT 
 Section 7.01. Remedies upon a Default. If a Default has occurred, the
Collateral Agent shall, at the written direction of the Controlling Party, take whatever action at law or in equity as may appear necessary or desirable in the judgment of the Controlling Party to collect and satisfy all Trust Secured Obligations,
including, but not limited to, foreclosure upon the Spread Account Agreement Collateral and all other rights available to secured parties under applicable law or to enforce performance and observance of any obligation, agreement or covenant under
any of the Basic Documents. 
 Section 7.02. Waiver of Default. The Controlling Party shall have the sole right, to be exercised in
its complete discretion, to waive any Default by a writing setting forth the terms, conditions and extent of such waiver signed by the Controlling Party and delivered to the Collateral Agent, the other Trust Secured Party and the Issuer. Any such
waiver shall be binding upon the Non-Controlling Party and the Collateral Agent. Unless such writing expressly provides to the contrary, any waiver so granted shall extend only to the specific event or occurrence which gave rise to the Default so
waived and not to any other similar event or occurrence which occurs subsequent to the date of such waiver. 
 Section 7.03. Restoration
of Rights and Remedies. If the Collateral Agent has instituted any proceeding to enforce any right or remedy under this Agreement, and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the
Collateral Agent, then and in every such case the Issuer, the Collateral Agent and each of the Trust Secured Parties shall, subject to any determination in such proceeding, be restored severally and respectively to their former positions hereunder,
and thereafter all rights and remedies of the Trust Secured Parties shall continue as though no such proceeding had been instituted. 
 Section 7.04. No Remedy Exclusive. No right or remedy herein conferred upon or reserved to the Collateral Agent, the Controlling Party or either of the Trust Secured Parties is intended to be exclusive of any other right or remedy,
and every right or remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law, in equity or otherwise (but, in each case, shall be subject to the
provisions of this Agreement limiting such remedies), and each and every right, power and remedy whether specifically herein given or otherwise existing may be exercised from time to time and as often and in such order as may be deemed expedient by
the Controlling Party, and the exercise of or the beginning of the exercise of any right or power or remedy shall not be construed to be a waiver of the right to exercise at the same time or thereafter any other right, power or remedy. 

 

 26 

 ARTICLE VIII 
 MISCELLANEOUS 
 Section 8.01. Further Assurances. Each party hereto shall take such action and
deliver such instruments to any other party hereto, in addition to the actions and instruments specifically provided for herein, as may be reasonably requested or required to effectuate the purpose or provisions of this Agreement or to confirm or
perfect any transaction described or contemplated herein. 
 Section 8.02. Waiver. Any waiver by any party of any provision of this
Agreement or any right, remedy or option hereunder shall only prevent and stop such party from thereafter enforcing such provision, right, remedy or option if such waiver is given in writing and only as to the specific instance and for the specific
purpose for which such waiver was given. The failure or refusal of any party hereto to insist in any one or more instances, or in a course of dealing, upon the strict performance of any of the terms or provisions of this Agreement by any party
hereto or the partial exercise of any right, remedy or option hereunder shall not be construed as a waiver or relinquishment of any such term or provision, but the same shall continue in full force and effect. 
 Section 8.03. Amendments; Waivers. No amendment, modification, waiver or supplement to this Agreement or any provision of this Agreement shall in
any event be effective unless the same shall have been made or consented to in writing by each of the parties hereto and the Rating Agency Condition shall have been satisfied; provided, however, that, notwithstanding the foregoing, for so long as
the Insurer shall be the Controlling Party, any amendments, modifications, waivers or supplements hereto, or to the Spread Account Agreement Collateral or Spread Account or to any requirement hereunder to deposit or retain any amounts in such Spread
Account or to distribute any amounts therein as provided in Section 3.03 shall be effective if made or consented to in writing by the Insurer, the Issuer and the Collateral Agent (the consent of which shall not be withheld or delayed with
respect to any amendment that does not adversely affect the Collateral Agent) but shall in no circumstances require the consent of the Trustee or the Noteholders. 
 Section 8.04. Severability. In the event that any provision of this Agreement or the application thereof to any party hereto or to any circumstance or in any jurisdiction governing this Agreement shall, to any
extent, be invalid or unenforceable under any applicable statute, regulation or rule of law, then such provision shall be deemed inoperative to the extent that it is invalid or unenforceable and the remainder of this Agreement, and the application
of any such invalid or unenforceable provision to the parties, jurisdictions or circumstances other than to whom or to which it is held invalid or unenforceable, shall not be affected thereby nor shall the same affect the validity or enforceability
of any other provision of this Agreement. The parties hereto further agree that the holding by any court of competent jurisdiction that any remedy pursued by the Collateral Agent, or any of the Trust Secured Parties, hereunder is unavailable or
unenforceable shall not affect in any way the ability of the Collateral Agent or any of the Trust Secured Parties to pursue any other remedy available to it or them (subject, however, to the provisions of this Agreement limiting such remedies).

  

 27 

 Section 8.05. Nonpetition Covenant. Notwithstanding any prior termination of this Agreement, each
of the parties hereto agrees that it shall not, prior to one year and one day after the Final Scheduled Distribution Date of the Class A-3 Notes and payment of all amounts due to the Insurer under the Insurance Agreement, acquiesce, petition or
otherwise invoke or cause the Issuer or the Seller to invoke the process of the United States of America, any State or other political subdivision thereof or any entity exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government for the purpose of commencing or sustaining a case by or against the Issuer or the Seller under a Federal or state bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee,
Trustee, custodian, sequestrator or other similar official of the Issuer or the Seller or all or any part of its respective property or assets or ordering the winding up or liquidation of the affairs of the Issuer or the Seller. The parties agree
that damages will be an inadequate remedy for breach of this covenant and that this covenant may be specifically enforced. 
 Section
8.06. Notices. All notices, demands, certificates, requests and communications hereunder (“notices”) shall be in writing and shall be effective (a) upon receipt when sent through the U.S. mails, registered or certified mail,
return receipt requested, postage prepaid, with such receipt to be effective the date of delivery indicated on the return receipt, (b) one Business Day after delivery to an overnight courier, (c) on the date personally delivered to an
Authorized Officer of the party to which sent, or (d) on the date transmitted by legible telecopier transmission with a confirmation of receipt, in all cases addressed to the recipient as follows: 
  

	 	(a)	If to the Issuer: 

 UPFC Auto Receivables Trust 2007-A

 c/o Wells Fargo Delaware Trust Company 
 919 Market Street, Suite 700 
 Wilmington, DE 19801 
 Attention: Corporate Trust Administration 
  

 28 

	 	(b)	If to the Insurer: 

 MBIA Insurance Corporation

 113 King Street 
 Armonk, New
York 10504 
 Attention: Insured Portfolio Management—Structured Finance 
 (UPFC Auto Receivables Trust 2007-A) 
 (in
each case in which notice or other communication to the Insurer refers to a Default or a claim on the Policy or in which failure on the part of the Insurer to respond shall be deemed to constitute consent or acceptance, then with a copy to the
attention of the General Counsel marked to reflect “Urgent Materials Enclosed”) 
  

	 	(c)	If to the Trustee and the Trust Collateral Agent: 

 Deutsche Bank Trust Company Americas 
 60 Wall Street, 26th Floor 
 New York,
NY 10005 
 Attention: Structured Finance Services 
  

	 	(d)	If to the Collateral Agent: 

 Deutsche Bank Trust Company
Americas 
 60 Wall Street, 26th Floor 
 New York, NY 10005 
 Attention: Structured Finance Services 
  

	 	(e)	If to Moody’s: 

 Moody’s Investors Service, Inc.

 ABS Monitoring Department 
 99 Church Street 
 New York, New York 10007 
  

 29 

	 	(f)	If to Standard & Poor’s: 

 Standard & Poor’s Ratings Services, a division of 
 The McGraw Hill Companies, Inc. 
 55 Water Street, 40th Floor 
 New York, New
York 10041 
 Attention: Asset-Backed Surveillance Department 
 A copy of each notice given hereunder to any party hereto shall also be given to (without duplication) the Insurer, the Issuer, the Trustee, the Trust Collateral Agent and the Collateral Agent. Each party hereto may,
by notice given in accordance herewith to each of the other parties hereto, designate any further or different address to which subsequent notices shall be sent. 
 Section 8.07. Term of this Agreement. This Agreement shall take effect on the Closing Date and shall continue in effect until the Distribution Date occurring immediately following the Final Termination Date. On
the Distribution Date occurring immediately following the Final Termination Date and after giving effect to any withdrawals pursuant to Section 3.03, this Agreement shall terminate, all obligations of the parties hereunder shall cease and
terminate and the Spread Account Agreement Collateral, if any, held hereunder and not to be used or applied in discharge of any obligations of the Issuer in respect of the Trust Secured Obligations or otherwise under this Agreement, shall be
released to and in favor of the Issuer; provided that the provisions of Sections 4.06, 4.07 and 8.05 shall survive any termination of this Agreement and the release of any Spread Account Agreement Collateral upon such termination. 
 Section 8.08. Assignments; Third-Party Rights; Reinsurance. 
 (a) This Agreement shall be a continuing obligation of the parties hereto and shall (i) be binding upon the parties and their
respective successors and assigns, and (ii) inure to the benefit of and be enforceable by each Trust Secured Party and the Collateral Agent, and by their respective successors, transferees and assigns. The Issuer may not assign this Agreement,
or delegate any of its duties hereunder, without the prior written consent of the Controlling Party. 
 (b) The Insurer shall
have the right to give participations in its rights under this Agreement and to enter into contracts of reinsurance with respect to the Note Policy issued in connection with the Notes, upon such terms and conditions as the Insurer in its discretion
determines, and each such participant or reinsurer shall be entitled to the benefit of any representation, warranty, covenant and obligation of each party (other than the Insurer) hereunder as if such participant or reinsurer was a party hereto and,
subject only to such agreement regarding such reinsurance or participation, shall have the right to enforce the obligations of each such other party directly hereunder; provided, however, that no such reinsurance or participation agreement or
arrangement shall relieve the Insurer of its obligations hereunder, under the Basic Documents to which it is a party or under the Note Policy. In addition, nothing contained herein shall restrict the Insurer from assigning to any Person pursuant to
any liquidity facility or credit facility any rights of the Insurer under this Agreement or with respect to any real or personal property or other interests pledged to the Insurer, or in which the Insurer has a security interest, in connection with
the transactions contemplated hereby. 
  

 30 

 Section 8.09. Consent of Controlling Party. In the event that the Controlling Party’s consent
is required under the terms hereof or under the terms of any Basic Document, it is understood and agreed that, except as otherwise provided expressly herein, the determination whether to grant or withhold such consent shall be made solely by the
Controlling Party in its sole discretion. 
 Section 8.10. Consents to Jurisdiction. Each of the parties hereto irrevocably submits to
the non-exclusive jurisdiction of the United States District Court for the Southern District of New York, 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 related to or in connection with this Agreement, the other Basic Documents or the transactions contemplated hereunder or thereunder or for recognition or enforcement of any judgment and each of the parties hereto
irrevocably and unconditionally agrees that all claims in respect of any such suit or action or proceeding may be heard or determined in such New York State court or, to the extent permitted by law, in such federal court. Each of the parties hereto
agrees 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, each of the
parties hereby waives and agrees 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 this Agreement or any of the other Basic Documents or the subject matter hereof or thereof may not be litigated in or by such courts. The Issuer
hereby irrevocably appoints and designates Deutsche Bank Trust Company Americas, as its true and lawful attorney and duly authorized agent for acceptance of service of legal process relating hereto. The Issuer agrees that service of such process
upon such Person shall constitute personal service of such process upon it. Subject to Section 8.05, nothing contained in this Agreement shall limit or affect the rights of any party hereto to serve process in any other manner permitted by law
or to start legal proceedings relating to any of the Basic Documents against the Issuer or its property in the courts of any jurisdiction. 
 Section 8.11. Determination of Adverse Effect. Any determination of an adverse effect on the interest of the Trust Secured Parties or the Noteholders shall be made without consideration of the availability of funds under the Note
Policy. 
 Section 8.12. Headings. The headings of articles, sections and paragraphs and the Table of Contents contained in this
Agreement are provided for convenience only. They form no part of this Agreement and shall not affect its construction or interpretation. 
 Section 8.13. TRIAL BY JURY WAIVED. EACH OF THE PARTIES HERETO WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION ARISING DIRECTLY OR INDIRECTLY OUT OF, UNDER OR IN
CONNECTION WITH THIS AGREEMENT, ANY OF THE OTHER BASIC DOCUMENTS OR ANY OF THE TRANSACTIONS 

  

 31 

 
CONTEMPLATED HEREUNDER OR THEREUNDER. EACH OF THE PARTIES HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER BASIC DOCUMENTS TO
WHICH IT IS A PARTY, BY AMONG OTHER THINGS, THIS WAIVER. 
 Section 8.14. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ITS CONFLICTS OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES UNDER THIS
AGREEMENT SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
 Section 8.15. Counterparts. This Agreement may be executed in two or
more counterparts by the parties hereto, and each such counterpart shall be considered an original and all such counterparts shall constitute one and the same instrument. 
 Section 8.16. Limitation of Liability. 
 (a) It is expressly understood and agreed by
the parties hereto that (a) this Agreement is executed and delivered by Wells Fargo Delaware Trust Company, not individually or personally but solely as trustee of the Issuer, in the exercise of the powers and authority conferred and vested in
it under the Trust Agreement, (b) each of the representations, undertakings and agreements herein made on the part of the Issuer is made and intended not as personal representations, undertakings and agreements by Wells Fargo Delaware Trust
Company but is made and intended for the purpose for binding only the Issuer and (c) under no circumstances shall Wells Fargo Delaware Trust Company be personally liable for the payment of any indebtedness or expenses 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 Agreement. 
 (b) Notwithstanding anything contained herein to the contrary, this Agreement has been executed and delivered by Deutsche Bank Trust Company Americas, not in its individual capacity but solely in its capacities as
Collateral Agent, Trustee and Trust Collateral Agent and in no event shall Deutsche Bank Trust Company Americas, have any liability for the representations, warranties, covenants, agreements or other obligations of the Issuer hereunder or in any of
the certificates, notices or agreements delivered pursuant hereto, as to all of which recourse shall be had solely to the assets of the Issuer. 
 [REMAINDER OF PAGE INTENTIONALLY BLANK; SIGNATURE PAGE FOLLOWS] 
  

 32 

 IN WITNESS WHEREOF, the parties hereto have executed this Spread Account Agreement as of the date set
forth on the first page hereof. 
  

			
	 UPFC AUTO RECEIVABLES TRUST 2007-A, as
 Issuer

		
	By:	 	WELLS FARGO DELAWARE TRUST COMPANY, not in its individual capacity but solely as Owner Trustee on behalf of the Trust.
		
	By:	 	  

	Title:	 	  

  

 UPFC Auto Receivables Trust 2007-A 
 Spread Account Agreement Signature Page 

			
	MBIA INSURANCE CORPORATION, as Insurer
		
	By:	 	  

	Title:	 	Assistant Secretary

  

 UPFC Auto Receivables Trust 2007-A 
 Spread Account Agreement Signature Page 

			
	 DEUTSCHE BANK TRUST COMPANY
 AMERICAS, as
Trustee, as Trust Collateral Agent
 and as Collateral Agent

		
	By:	 	  

	Title:	 	  

		
	By:	 	  

	Title:	 	  

  

 UPFC Auto Receivables Trust 2007-A 
 Spread Account Agreement Signature Page 

 Accepted and Agreed with respect to Sections 4.06 and 4.07: 
  

			
	UNITED AUTO CREDIT CORPORATION
		
	By:	 	  

	Title:	 	  

  

 UPFC Auto Receivables Trust 2007-A 
 Spread Account Agreement Signature Page

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