Document:

Exhibit 10.3

 

Exhibit 10.3

EXECUTION VERSION

 

ADMINISTRATION AGREEMENT

between

SANTANDER DRIVE AUTO RECEIVABLES TRUST 2007-2,

as Issuer,

SANTANDER CONSUMER USA INC.,

as Administrator

U.S. BANK TRUST NATIONAL ASSOCIATION,

as Owner Trustee

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Indenture Trustee

Dated as of September 5, 2007

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	1.	 	Duties of the Administrator
	 	 	1	 
	2.	 	Records
	 	 	3	 
	3.	 	Compensation; Payment of Fees and Expenses
	 	 	3	 
	4.	 	Independence of the Administrator
	 	 	3	 
	5.	 	No Joint Venture
	 	 	3	 
	6.	 	Other Activities of the Administrator
	 	 	4	 
	7.	 	Representations and Warranties of the Administrator
	 	 	4	 
	8.	 	Administrator Termination Events; Termination of the Administrator
	 	 	5	 
	9.	 	Action upon Termination or Removal
	 	 	6	 
	10.	 	Liens
	 	 	6	 
	11.	 	Notices
	 	 	6	 
	12.	 	Amendments
	 	 	8	 
	13.	 	Governing Law; Submission to Jurisdiction
	 	 	9	 
	14.	 	Headings
	 	 	10	 
	15.	 	Counterparts
	 	 	10	 
	16.	 	Severability of Provisions
	 	 	10	 
	17.	 	Not Applicable to Santander Consumer in Other Capacities
	 	 	10	 
	18.	 	Benefits of the Administration Agreement
	 	 	10	 
	19.	 	Assignment
	 	 	10	 
	20.	 	Nonpetition Covenant
	 	 	11	 
	21.	 	Limitation of Liability
	 	 	11	 
	22.	 	Limitation of Rights
	 	 	11	 

 i 

 

 

     THIS ADMINISTRATION AGREEMENT (this “Agreement”) dated as of September 5, 2007, is
between SANTANDER DRIVE AUTO RECEIVABLES TRUST 2007-2, a Delaware statutory trust (the
“Issuer”), U.S. BANK TRUST NATIONAL ASSOCIATION, a national banking association, not in its
individual capacity, but solely as Owner Trustee of the Issuer (the “Owner Trustee”),
SANTANDER CONSUMER USA INC., an Illinois corporation, as administrator (“Santander
Consumer” or the “Administrator”), and Wells Fargo Bank, National Association, a
national banking association organized under the laws of the United States, as indenture trustee
(the “Indenture Trustee”). Capitalized terms used herein and not otherwise defined herein
shall have the meanings assigned such terms in Appendix A to the Sale and Servicing
Agreement dated as of the date hereof (the “Sale and Servicing Agreement”) by and between
Santander Drive Auto Receivables LLC, as seller, the Issuer, the Administrator, as servicer, and
the Indenture Trustee, as indenture trustee.

W I T N E S S E T H :

     WHEREAS, the Issuer has issued the Notes pursuant to the Indenture and has entered into
certain agreements in connection therewith, including, (i) the Sale and Servicing Agreement, (ii)
the Indenture, (iii) the Note Depository Agreement, (iv) the Trust Agreement, (v) the Interest Rate
Swap Agreement, (vi) the Intercreditor Agreement, (vii) each reimbursement agreement relating to
each Reserve Account Letter of Credit, and (viii) the Insurance Agreement (each of the agreements
referred to in clauses (i) through (viii) are referred to herein collectively as the “Issuer
Documents”);

     WHEREAS, to secure payment of the Notes, the Issuer has pledged the Collateral to the
Indenture Trustee pursuant to the Indenture;

     WHEREAS, pursuant to the Issuer Documents, the Issuer and the Owner Trustee are required to
perform certain duties;

     WHEREAS, the Issuer and the Owner Trustee desire to have the Administrator perform certain of
the duties of the Issuer and the Owner Trustee (in its capacity as Owner Trustee), and to provide
such additional services consistent with this Agreement and the Issuer Documents as the Issuer may
from time to time request;

     WHEREAS, the Administrator has the capacity to provide the services required hereby and is
willing to perform such services for the Issuer and the Owner Trustee on the terms set forth
herein;

     NOW, THEREFORE, in consideration of the mutual terms and covenants contained herein, and other
good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the
parties agree as follows:

     1. Duties of the Administrator.

     (a) Duties with Respect to the Issuer Documents. The Administrator shall
perform all of its duties as Administrator under this Agreement, all duties expressly
assigned to it under the Issuer Documents and the duties and obligations of the Issuer and
the Owner Trustee (if any) under the Issuer Documents; provided, however, except as

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otherwise provided in the Issuer Documents, that the Administrator shall have no
obligation to make any payment required to be made by the Issuer under any Issuer Document.
In addition, the Administrator shall consult with the Issuer, the Indenture Trustee, the
Insurer and the Owner Trustee regarding its duties and obligations under the Issuer
Documents. The Administrator shall monitor the performance of the Issuer and the Owner
Trustee and shall advise the Issuer, the Indenture Trustee, the Insurer and the Owner
Trustee when action is necessary to comply with the Issuer’s and the Owner Trustee’s duties
and obligations under the Issuer Documents. The Administrator shall perform such
calculations, shall execute and deliver all Issuer Orders and Officer’s Certificates
required of the Issuer under the Issuer Documents and shall prepare for execution by the
Issuer or the Owner Trustee or shall cause the preparation by other appropriate persons of
all such documents, reports, filings, instruments, certificates, opinions, financial
statements and accounting books and records as it shall be the duty of the Issuer or the
Owner Trustee (in its capacity as owner trustee) to prepare, file or deliver pursuant to the
Issuer Documents or under state and federal tax and securities laws. In furtherance of the
foregoing, the Administrator shall take all appropriate action that is the duty of the
Issuer and the Owner Trustee (in its capacity as owner trustee) to take pursuant to the
Issuer Documents, including, without limitation, pursuant to Section 5.4 (with respect to
the preparation and filing of tax returns) of the Trust Agreement, and shall prepare and
execute on behalf of the Issuer or obtain from the appropriate party all such documents,
reports, filings, instruments, notices, certificates and opinions as it shall be the duty of
the Issuer to prepare, file, obtain or deliver pursuant to the Issuer Documents or otherwise
by law. The Administrator, on behalf of the Issuer, shall monitor, apply for, obtain and
maintain all licenses, permits, registrations, foreign qualifications, regulatory approvals
and consents required in connection with the conduct of the Issuer’s business and
activities. Upon written request, the Owner Trustee shall execute and deliver to Santander
Consumer a limited power of attorney appointing Santander Consumer as the Issuer’s agent and
attorney-in-fact to prepare, or cause to be prepared, executed and delivered all such
documents, reports, filings, instruments, certificates and opinions.

     (b) Notwithstanding anything to the contrary in this Agreement, the Administrator shall
not be obligated to, and shall not, take any action that the Issuer directs the
Administrator not to take nor which would result in a violation or breach of the Issuer’s
covenants, agreements or obligations under any of the Issuer Documents.

     (c) Non-Ministerial Matters; Exceptions to Administrator Duties.

     (i) Notwithstanding anything to the contrary in this Agreement, with respect to
matters that in the reasonable judgment of the Administrator are non-ministerial,
the Administrator shall not take any action unless, within a reasonable time before
the taking of such action, the Administrator shall have notified the Issuer of the
proposed action and the Issuer shall not have withheld consent or provided an
alternative direction. For the purpose of the preceding sentence, “non-ministerial
matters” shall include, without limitation:

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     (A) the initiation of any claim or lawsuit by the Issuer and the compromise of
any action, claim or lawsuit brought by or against the Issuer;

     (B) the appointment of successor Note Registrars, successor Paying Agents,
successor Indenture Trustees, successor Administrators, successor Owner Trustees,
successor Swap Providers or successor Servicers, or the consent to the assignment by
the Note Registrar, Paying Agent or Indenture Trustee of its obligations under the
Indenture; and

     (C) the removal of the Indenture Trustee.

     (ii) Notwithstanding anything to the contrary in this Agreement, the
Administrator shall not be obligated to, and shall not, (x) make any payments to the
Noteholders under the Transaction Documents, (y) except as provided in the
Transaction Documents, sell the Trust Estate or (z) take any other action that the
Issuer or the Issuer directs the Administrator not to take on its behalf.

     (d) In accordance with Section 6.7 of the Sale and Servicing Agreement, in the event
that (i) a Servicer Termination Event has occurred and is continuing or (ii) Banco
Santander, S.A. fails to maintain (a) a credit rating on its short-term unsecured debt of at
least “A-1+” by S&P and at least “Prime-1” by Moody’s and (b) a long-term rating of at least
“A-” by S&P and “A3” by Moody’s, and if the Controlling Party so directs the Issuer, the
Administrator shall appoint, or shall cause the Issuer to appoint, a backup servicer
reasonably acceptable to the Controlling Party.

     2. Records. The Administrator shall maintain appropriate books of account and records
relating to services performed hereunder, which books of account and records shall be accessible
for inspection by the Issuer, the Seller, the Insurer and the Indenture Trustee at any time during
normal business hours. The Administrator shall furnish to the Owner Trustee, the Indenture Trustee
and the Insurer from time to time such additional information regarding the Issuer or the Issuer
Documents as the Owner Trustee, the Indenture Trustee or the Insurer shall reasonably request.

     3. Compensation; Payment of Fees and Expenses. As compensation for the performance of
the Administrator’s obligations under this Agreement and as reimbursement for its expenses related
thereto, the Administrator shall be entitled to receive $2,500 annually which shall be solely an
obligation of the Servicer. The Administrator shall pay all expenses incurred by it in connection
with its activities hereunder.

     4. Independence of the Administrator. For all purposes of this Agreement, the
Administrator shall be an independent contractor and shall not be subject to the supervision of the
Issuer with respect to the manner in which it accomplishes the performance of its obligations
hereunder. Unless expressly authorized by the Issuer, the Administrator shall have no authority to
act for or to represent the Issuer in any way (other than as permitted hereunder) and shall not
otherwise be deemed an agent of the Issuer.

     5. No Joint Venture. Nothing contained in this Agreement (i) shall constitute the
Administrator and the Issuer as members of any partnership, joint venture, association, syndicate,

3

 

unincorporated business or other separate entity, (ii) shall be construed to impose any
liability as such on any of them or (iii) shall be deemed to confer on any of them any express,
implied or apparent authority to incur any obligation or liability on behalf of the others.

     6. Other Activities of the Administrator. Nothing herein shall prevent the
Administrator or its Affiliates from engaging in other businesses or, in its sole discretion, from
acting in a similar capacity as an Administrator for any other Person even though such Person may
engage in business activities similar to those of the Issuer, the Owner Trustee or the Indenture
Trustee.

     7. Representations and Warranties of the Administrator. The Administrator represents
and warrants to the Issuer, the Owner Trustee, the Insurer and the Indenture Trustee as follows:

     (a) Existence and Power. The Administrator is a corporation validly existing
and in good standing under the laws of its state of organization and has, in all material
respects, full power and authority to own its assets and operate its business as presently
owned or operated, and to execute, deliver and perform its obligations under the Transaction
Documents to which it is a party or affect the enforceability or collectibility of the
Contracts or any other part of the Collateral. The Administrator has obtained all necessary
licenses and approvals in each jurisdiction where the failure to do so would materially and
adversely affect the ability of the Administrator to perform its obligations under the
Transaction Documents or affect the enforceability or collectibility of the Contracts or any
other part of the Collateral.

     (b) Authorization and No Contravention. The execution, delivery and
performance by the Administrator of the Transaction Documents to which it is a party have
been duly authorized by all necessary action on the part of the Administrator and do not
contravene or constitute a default under (i) any applicable law, rule or regulation, (ii)
its organizational documents or (iii) any material indenture or material agreement or
instrument to which the Administrator is a party by which its properties are bound (other
than violations of such laws, rules, regulations, indentures or agreements which do not
affect the legality, validity or enforceability of any of such agreements and which,
individually or in the aggregate, would not materially and adversely affect the transactions
contemplated by, or the Administrator’s ability to perform its obligations under, the
Transaction Documents).

     (c) No Consent Required. No approval or authorization by, or filing with, any
Governmental Authority is required in connection with the execution, delivery and
performance by the Administrator of any Transaction Document other than (i) UCC filings,
(ii) approvals and authorizations that have previously been obtained and filings that have
previously been made and (iii) approval, authorizations or filings which, if not obtained or
made, would not have a material adverse effect on the enforceability or collectibility of
the Contracts or any other part of the Collateral or would not materially and adversely
affect the ability of the Administrator to perform its obligations under the Transaction
Documents.

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     (d) Binding Effect. Each Transaction Document to which the Administrator is a
party constitutes the legal, valid and binding obligation of the Administrator enforceable
against the Administrator in accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium, receivership,
conservatorship or other similar laws affecting the enforcement of creditors’ rights
generally or by general principles of equity.

     8. Administrator Termination Events; Termination of the Administrator.

     (a) Subject to clauses (d) and (e) below, the Administrator may resign its duties
hereunder by providing the Issuer and the Insurer with at least sixty (60) days’ prior
written notice.

     (b) Subject to clauses (d) and (e) below, the Issuer may remove the Administrator
without cause by providing the Administrator and the Insurer with at least sixty (60) days’
prior written notice.

     (c) The occurrence of any one of the following events (each, an “Administrator
Termination Event”) shall also entitle the Issuer, subject to Section 19 hereof,
to terminate and replace the Administrator:

     (i) any failure by the Administrator to deliver or cause to be delivered any
required payment to the Indenture Trustee, the Insurer or the Swap Provider which
failure continues unremedied for one Business Day after discovery thereof by a
Responsible Officer of the Administrator or receipt by the Administrator of written
notice thereof from the Indenture Trustee, the Insurer or Noteholders evidencing at
least 25% of Outstanding Notes, voting together as a single class;

     (ii) any failure by the Administrator to duly observe or perform in any
material respect any other of its covenants or agreements in this Agreement, which
failure materially and adversely affects the rights of the Issuer, the Insurer or
the Noteholders, and which continues unremedied for 30 days after discovery thereof
by a Responsible Officer of the Administrator or receipt by the Administrator of
written notice thereof from the Indenture Trustee, the Insurer or Noteholders
evidencing at least 25% of Outstanding Notes, voting together as a single class;

     (iii) any representation or warranty of the Administrator made in any
Transaction Document to which the Administrator is a party or by which it is bound
or any certificate delivered pursuant to this Agreement proves to have been
incorrect in any material respect when made, which failure materially and adversely
affects the rights of the Issuer, the Insurer or the Noteholders, and which failure
continues unremedied for 30 days after discovery thereof by a Responsible Officer of
the Administrator or receipt by the Administrator of written notice thereof from the
Indenture Trustee, the Insurer or Noteholders evidencing at least 25% of Outstanding
Notes, voting together as a single class (it being understood that any repurchase of
a Receivable by Santander Consumer

5

 

pursuant to Section 3.3 of the Contribution Agreement, by the Seller pursuant
to Section 2.3 of the Sale and Servicing Agreement or by the Servicer pursuant to
Section 3.6 of the Sale and Servicing Agreement shall be deemed to remedy any
incorrect representation or warranty with respect to such Receivable); or

     (d) the Administrator suffers a Bankruptcy Event.

     (e) If an Administrator Termination Event shall have occurred, the Issuer may, subject
to Section 19 hereof, by notice given to the Administrator, the Insurer and the
Owner Trustee, terminate all or a portion of the rights and powers of the Administrator
under this Agreement, including the rights of the Administrator to receive the annual fee
for services hereunder for all periods following such termination; provided, however that
such termination shall not become effective until such time as the Issuer, subject to
Section 19 hereof, shall have appointed a successor Administrator acceptable to the
Insurer in the manner set forth below. Upon any such termination, all rights, powers,
duties and responsibilities of the Administrator under this Agreement shall vest in and be
assumed by any successor Administrator appointed by the Issuer, subject to Section
19 hereof, pursuant to an administration agreement between the Issuer and such successor
Administrator, containing substantially the same provisions as this Agreement (including
with respect to the compensation of such successor Administrator), and the successor
Administrator is hereby irrevocably authorized and empowered to execute and deliver, on
behalf of the Administrator, as attorney-in-fact or otherwise, all documents and other
instruments, and to do or accomplish all other acts or things necessary or appropriate to
effect such vesting and assumption. Further, in such event, the Administrator shall use its
commercially reasonable efforts to effect the orderly and efficient transfer of the
administration of the Issuer to the new Administrator.

     (f) The Issuer, subject to Section 19 hereof, may with the prior written
consent of the Insurer waive in writing any Administrator Termination Event by the
Administrator in the performance of its obligations hereunder and its consequences. Upon
any such waiver of a past Administrator Termination Event, such Administrator Termination
Event shall cease to exist, and any Administrator Termination Event arising therefrom shall
be deemed to have been remedied for every purpose of this Agreement. No such waiver shall
extend to any subsequent or other Administrator Termination Event or impair any right
consequent thereon.

     9. Action upon Termination or Removal. Promptly upon the effective date of
termination of this Agreement pursuant to Section 8, or the removal of the Administrator
pursuant to Section 8, the Administrator shall be entitled to be paid by the Servicer all
fees and reimbursable expenses accruing to it to the date of such termination or removal.

     10. Liens. The Administrator will not directly or indirectly create, allow or suffer
to exist any Lien on the Collateral other than Permitted Liens.

     11. Notices. Any notice, report or other communication given hereunder shall be in
writing and addressed as follows:

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	 	(a)	 	if to the Administrator, to:
	 
	 	 	 	Santander Consumer USA Inc.

8585 North Stemmons Freeway

Suite 1100-N

Dallas, Texas 75247

Attention: Jim W. Moore

Telephone: (214) 634-1110

Facsimile: (214) 237-3570
	 
	 	(b)	 	if to the Issuer, to:
	 
	 	 	 	Santander Drive Auto Receivables Trust 2007-2

U.S. Bank Trust National Association

300 Delaware Avenue, 9th Floor

Wilmington, DE 19801

Attention: Mildred F. Smith

Telephone: (302) 576-3703

Facsimile: (302) 576-3717
	 
	 	(c)	 	if to the Owner Trustee, to:
	 
	 	 	 	U.S. Bank Trust National Association

300 Delaware Avenue, 9th Floor

Wilmington, DE 19801

Attention: Mildred F. Smith

Telephone: (302) 576-3703

Facsimile: (302) 576-3717
	 
	 	(d)	 	if to the Indenture Trustee, to:
	 
	 	 	 	Wells Fargo Bank, National Association

MAC N9311-161

Sixth Street and Marquette Avenue

Minneapolis, MN 55479

Attention: Corporate Trust Services – Asset-Backed

Administration/Santander Drive Auto 2007-2

Telephone: (612) 667-8058

Facsimile: (612) 667-3464
	 
	 	(e)	 	if to the Insurer, to:
	 
	 	 	 	MBIA Insurance Corporation

113 King Street

Armonk, NY 10504

7

 

	 	 	 	Attention: Insured Portfolio Management – Asset-Backed

Finance (IPM-SF) Santander Drive Auto Receivables Trust 2007-2

Telephone: (914) 273-4545

Facsimile: (914) 765-3810

or to such other address as any party shall have provided to the other parties in writing. Any
notice required to be in writing hereunder shall be deemed given if such notice is mailed by
certified mail, postage prepaid or hand-delivered to the address of such party as provided above.

     12. Amendments.

     (a) Any term or provision of this Agreement may be amended by the Administrator, with
the prior written consent of the Insurer, without the consent of the Indenture Trustee, any
Noteholder, the Issuer or the Owner Trustee (subject to Section 12(e) below);
provided that such amendment shall not, as evidenced by an Opinion of Counsel delivered to
the Indenture Trustee and the Insurer materially and adversely affect the interests of the
Noteholders; provided, further, that such amendment shall be deemed not to materially and
adversely affect the interests of any Noteholder, and no Opinion of Counsel shall be
required, if the Rating Agency Condition is satisfied with respect to such amendment.

     (b) Any term or provision of this Agreement may be amended by the Administrator, with
the prior written consent of the Insurer, but without the consent of the Indenture Trustee,
any Noteholder, the Issuer, the Owner Trustee (subject to Section 12(e) below) or
any other Person to add, modify or eliminate any provisions as may be necessary or advisable
in order to enable the Seller, the Servicer or any of their Affiliates to comply with or
obtain more favorable treatment under any law or regulation or any accounting rule or
principle, it being a condition to any such amendment that the Rating Agency Condition shall
have been satisfied.

     (c) This Agreement may also be amended from time to time by the Issuer, the
Administrator and the Indenture Trustee, with the consent of the Insurer and the Holders of
Notes evidencing not less than a majority of the aggregate principal amount of the
Outstanding Notes, voting as a single class, for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Agreement or of
modifying in any manner the rights of the Noteholders. It will not be necessary for the
consent of Noteholders to approve the particular form of any proposed amendment or consent,
but it will be sufficient if such consent approves the substance thereof. The manner of
obtaining such consents (and any other consents of Noteholders provided for in this
Agreement) and of evidencing the authorization of the execution thereof by Noteholders will
be subject to such reasonable requirements as the Indenture Trustee may prescribe, including
the establishment of record dates pursuant to the Note Depository Agreement.

     (d) Prior to the execution of any such amendment, the Administrator shall provide
written notification of the substance of such amendment to each Rating Agency,

8

 

the Insurer and the Owner Trustee; and promptly after the execution of any such
amendment or consent, the Administrator shall furnish a copy of such amendment or consent to
each Rating Agency, the Owner Trustee, the Insurer and the Indenture Trustee.

     (e) Prior to the execution of any amendment to this Agreement, the Issuer, the Owner
Trustee, the Insurer and the Indenture Trustee shall be entitled to receive and conclusively
rely upon an Opinion of Counsel stating that the execution of such amendment is authorized
or permitted by this Agreement and that all conditions precedent to the execution and
delivery of such amendment have been satisfied. The Owner Trustee and the Indenture Trustee
may, but shall not be obligated to, enter into any such amendment which adversely affects
the Owner Trustee’s or the Indenture Trustee’s, as applicable, own rights, duties or
immunities under this Agreement. Furthermore, notwithstanding anything to the contrary
herein, this Agreement may not be amended in any way that would expand the Owner Trustee’s
duties or adversely affect the Owner Trustee’s rights, duties or obligations under this
Agreement, the Transaction Documents or otherwise or the Administrator’s duties and
obligations under Section 1 of this Agreement, without the prior written consent of
the Owner Trustee.

     13. Governing Law; Submission to Jurisdiction.

     (a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL,
SUBSTANTIVE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE RULES THEREOF RELATING TO
CONFLICTS OF LAW AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     (b) Each of the parties hereto hereby irrevocably and unconditionally:

     (i) submits for itself and its property in any legal action or proceeding
relating to this Agreement or any documents executed and delivered in connection
herewith, or for recognition and enforcement of any judgment in respect thereof, to
the nonexclusive general jurisdiction of the courts of the State of New York, the
courts of the United States of America for the Southern District of New York and
appellate courts from any thereof;

     (ii) consents that any such action or proceeding may be brought in such courts
and waives any objection that it may now or hereafter have to the venue of such
action or proceeding in any such court or that such action or proceeding was brought
in an inconvenient court and agrees not to plead or claim the same;

     (iii) agrees that service of process in any such action or proceeding may be
effected by mailing a copy thereof by registered or certified mail (or any
substantially similar form of mail), postage prepaid, to such Person at its address
determined in accordance with Section 11 of this Agreement; and

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     (iv) agrees that nothing herein shall affect the right to effect service of
process in any other manner permitted by law or shall limit the right to sue in any
other jurisdiction.

     14. Headings. The section headings hereof have been inserted for convenience of
reference only and shall not be construed to affect the meaning, construction or effect of this
Agreement.

     15. Counterparts. This Agreement may be executed in any number of counterparts, each
of which so executed shall be deemed to be an original, but all of such counterparts shall together
constitute but one and the same instrument.

     16. Severability of Provisions. If any one or more of the covenants, agreements,
provisions or terms of this Agreement shall be for any reason whatsoever held invalid, then such
covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants,
agreements, provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement.

     17. Not Applicable to Santander Consumer in Other Capacities. Nothing in this
Agreement shall affect any obligation Santander Consumer may have in any other capacity.
Notwithstanding anything in the Issuer Documents to the contrary, if Santander Consumer is removed
as Servicer pursuant to Section 7.1 of the Sale and Servicing Agreement, Santander Consumer shall
remain obligated to perform the administrative duties of the Owner Trustee under the Issuer
Documents in accordance with Section 1(a) hereof, unless the Owner Trustee has contracted
with a third party acceptable to the Controlling Party to discharge such duties, in accordance with
Section 6.2 of the Trust Agreement. Santander Consumer agrees to provide the indemnification of
the Owner Trustee pursuant to Section 6.2 of the Sale and Servicing Agreement and agrees that this
indemnity will survive the termination of Santander Consumer as Servicer under the Sale and
Servicing Agreement.

     18. Benefits of the Administration Agreement. Nothing in this Agreement, expressed or
implied, shall give to any Person other than the parties hereto and their successors hereunder, the
Owner Trustee, any separate trustee or co-trustee appointed under Section 6.10 of the Indenture,
the Insurer and the Noteholders, any benefit or any legal or equitable right, remedy or claim under
this Agreement. For the avoidance of doubt, the Owner Trustee and the Insurer are third party
beneficiaries of this Agreement and are entitled to the rights and benefits hereunder and may
enforce the provisions hereof as if they were a party hereto.

     19. Assignment. Each party hereto hereby acknowledges and consents to the mortgage,
pledge, assignment and grant of a security interest by the Issuer to the Indenture Trustee pursuant
to the Indenture for the benefit of the Noteholders and the Insurer of all of the Issuer’s rights
under this Agreement. In addition, the Administrator hereby acknowledges and agrees that for so
long as any Notes are outstanding, the Indenture Trustee will have the right to exercise all
waivers and consents, rights, remedies, powers, privileges and claims of the Issuer under this
Agreement.

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     20. Nonpetition Covenant. Each party hereto agrees that, prior to the date which is
one year and one day after payment in full of all obligations of each Bankruptcy Remote Party in
respect of all securities issued by any Bankruptcy Remote Party (i) such party shall not authorize
any Bankruptcy Remote Party to commence a voluntary winding-up or other voluntary case or other
proceeding seeking liquidation, reorganization or other relief with respect to such Bankruptcy
Remote Party or its debts under any bankruptcy, insolvency or other similar law now or hereafter in
effect in any jurisdiction or seeking the appointment of an administrator, a trustee, receiver,
liquidator, custodian or other similar official with respect to such Bankruptcy Remote Party or any
substantial part of its property or to consent to any such relief or to the appointment of or
taking possession by any such official in an involuntary case or other proceeding commenced against
such Bankruptcy Remote Party, or to make a general assignment for the benefit of, its creditors
generally, any party hereto or any other creditor of such Bankruptcy Remote Party, and (ii) none of
the parties hereto shall commence or join with any other Person in commencing any proceeding
against such Bankruptcy Remote Party under any bankruptcy, reorganization, liquidation or
insolvency law or statute now or hereafter in effect in any jurisdiction.

     21. Limitation of Liability. Notwithstanding anything contained herein to the
contrary, this Agreement has been executed and delivered by U.S. Bank Trust National Association,
not in its individual capacity but solely as Owner Trustee, and in no event shall it have any
liability for the representations, warranties, covenants, agreements or other obligations of the
Issuer hereunder or under the Notes or any of the other Transaction Documents or in any of the
certificates, notices or agreements delivered pursuant thereto, as to all of which recourse shall
be had solely to the assets of the Issuer. Under no circumstances shall the Owner Trustee be
personally liable for the payment of any indebtedness or expense of the Issuer or be liable for the
breach or failure of any obligations, representation, warranty or covenant made or undertaken by
the Issuer under the Transaction Documents. For the purposes of this Agreement, in the performance
of its duties or obligations hereunder, the Owner Trustee shall be subject to, and entitled to the
benefits of, the terms and provisions of Articles VI, VII and VIII of the Trust Agreement.

     22. Limitation of Rights. (a) All of the rights of the Insurer in, to and under this
Agreement (including, but not limited to, all of the Insurer’s rights as a third party beneficiary
of this Agreement and all of the Insurer’s rights to receive notice of any action hereunder and to
give or withhold consent to any action hereunder) shall terminate upon the termination of the
Insurance Agreement in accordance with the terms thereof and the payment in full of all amounts
owing to the Insurer.

[SIGNATURES ON NEXT PAGE]

11

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered
as of the day and year first above written.

	 	 	 	 	 
	 	SANTANDER DRIVE AUTO RECEIVABLES TRUST 2007-2

By: U.S. BANK TRUST NATIONAL ASSOCIATION,
 not in its individual capacity but solely as Owner Trustee

 	 
	 	By:  	/s/
Nicole Poole 	 
	 	Name:  	Nicole Poole 	 
	 	Title:  	Vice President 	 
	 
	 
	 	U.S. BANK TRUST NATIONAL ASSOCIATION, 
not in its
individual capacity, but solely as Owner Trustee

 	 
	 	By:  	/s/
Nicole Poole 	 
	 	Name:  	Nicole Poole 	 
	 	Title:  	Vice President 	 
	 

S-1

 

	 	 	 	 	 
	 	SANTANDER CONSUMER USA INC., 

as Administrator
 	 
	 
	 	By:  	/s/
Jim W. Moore 	 
	 	Name:  	Jim W. Moore 	 
	 	Title:  	Vice President 	 
	 

S-2

 

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Indenture
Trustee

 	 
	 	By:  	/s/
Marianna C. Stershic 	 
	 	Name:  	Marianna C. Stershic 	 
	 	Title:  	Vice President 	 
	 

S-3

 

Joinder of Servicer:

SANTANDER CONSUMER USA INC., as Servicer, joins in this Agreement solely for purposes of
Section 3.

	 	 	 	 	 
	 	SANTANDER CONSUMER USA INC., 

as Servicer

 	 
	 	By:  	/s/
Jim W. Moore 	 
	 	Name:  	Jim W. Moore 	 
	 	Title:  	Vice President 	 
	 

S-4Exhibit 10.4

 

Exhibit 10.4

EXECUTION VERSION

LIMITED GUARANTY

     This Limited Guaranty (this “Guaranty”) is entered into as of September 5, 2007, by
Banco Santander, S.A. (the “Guarantor”), in favor of Santander Drive Auto Receivables Trust
2007-2 (the “Issuer”), Wells Fargo Bank, National Association, as Indenture Trustee under
the Indenture referred to below (in such capacity, the “Indenture Trustee”), U.S. Bank
Trust National Association, as Owner Trustee under the Trust Agreement (the “Owner
Trustee”) and MBIA Insurance Corporation (the “Note Insurer”).

     WHEREAS, Santander Consumer USA Inc., as transferor (the “Transferor”), and Santander Drive
Auto Receivables LLC (the “Depositor”), as purchaser, are parties to that certain Contribution
Agreement dated as of even date herewith (as amended, modified or supplemented from time to time,
the “Contribution Agreement”); and

     WHEREAS, the Issuer, the Transferor, the Depositor and the Indenture Trustee are parties to
that certain Sale and Servicing Agreement dated as of even date herewith (as amended, modified or
supplemented from time to time, the “Sale and Servicing Agreement”); and

     WHEREAS, the Issuer, the Transferor, the Owner Trustee and the Indenture Trustee are parties
to that certain Administration Agreement dated as of even date herewith (as amended, modified or
supplemented from time to time, the “Administration Agreement”); and

     WHEREAS, the Issuer and Indenture Trustee are parties to that certain Indenture dated as of
even date herewith (as amended, modified or supplemented from time to time, the
“Indenture”) pursuant to which the Issuer has issued the Notes; and

     WHEREAS, the Note Insurer, the Transferor, the Depositor, the Issuer and the Indenture Trustee
are parties to that certain Insurance Agreement dated as of even date herewith (the “Insurance
Agreement”); and

     WHEREAS, the Note Insurer issued its Note Guaranty Insurance Policy (the “Note Insurance
Policy”) on September 5, 2007, guaranteeing certain payments due under the Notes as fully set
forth in the Note Insurance Policy; and

     WHEREAS, it is a condition precedent to the Note Insurer’s issuance of the Note Insurance
Policy that the Guarantor enter into this Guaranty;

     WHEREAS, the Guarantor will receive substantial direct and indirect benefits from the
consummation of the transactions contemplated by the Contribution Agreement, the Sale and Servicing
Agreement, the Administration Agreement and the Indenture; and

     NOW, THEREFORE, in consideration of the premises and the mutual covenants set forth
herein, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by the Guarantor, the parties hereto agree as follows:

Limited Guaranty

 

 

     Section 1. Definitions. Unless otherwise defined in this Guaranty, all defined terms used in
this Guaranty shall have the meanings ascribed to such terms in Appendix A to the Sale and
Servicing Agreement.

     Section 2. Guaranty of Obligations.

     (a) The Guarantor hereby absolutely, irrevocably and unconditionally guarantees for the
benefit of the Issuer, the Owner Trustee, the Indenture Trustee, the Noteholders and the Note
Insurer, the due and punctual performance by the Transferor (as servicer, custodian, if applicable,
and/or in its individual capacity) of its covenants, agreements and obligations contained in (i)
the Contribution Agreement; (ii) the Sale and Servicing Agreement, (iii) the Insurance Agreement
and (iv) the Administration Agreement (together, the “Obligations”);

     (b) For the avoidance of doubt, the Guarantor shall have no obligation to guaranty (and does
not guaranty) any obligations of the Obligors under the Receivables or any obligation of the Issuer
under the Indenture.

     Section 3. Unconditionality; Irrevocability. (a) This is an absolute, unconditional and
continuing guaranty of payment and performance of all Obligations, and the Guarantor agrees that
its obligations under this Guaranty shall be irrevocable. The dissolution, insolvency or
adjudication of bankruptcy of the Guarantor shall not revoke this Guaranty.

     (b) No act or thing need occur to establish the liability or obligation of the Guarantor
hereunder, and no act or thing, except full payment, discharge and performance of all Obligations,
shall in any way exonerate the Guarantor hereunder or modify, reduce, limit or release the
liability of Guarantor hereunder. None of Issuer, the Indenture Trustee or the Note Insurer shall
be required first to resort to payment of the Obligations by the Transferor or other Person, or
their properties, before enforcing this Guaranty. Until payment in full of the Obligations, the
Obligations of the Guarantor under this Guaranty shall not be affected, modified or impaired upon
the happening from time to time of any event, including, without limitation, the events described
in Section 4 herein, whether or not with notice to or the consent of the Guarantor.

     (c) The Guarantor further agrees that, if any payment applied hereunder to the Obligations is
thereafter set aside, recovered, rescinded or required to be returned for any reason (including,
without limitation, the bankruptcy, insolvency or reorganization of the Transferor or any other
obligor) or declared to be fraudulent or preferential, the Obligations to which such payment was
applied shall for the purpose of this Guaranty be deemed to have continued in existence,
notwithstanding such payment, and this Guaranty shall be enforceable as to such Obligations as
fully as if such payment had never been made. The provisions of this Section 3(c) hereof
shall survive any termination of this Guaranty.

     Section 4. Continuation and Validity of Obligations. The liability of the Guarantor shall not
be affected or impaired by any of the following events: (a) the validity, enforceability, discharge, disaffirmance, settlement or compromise (by any Person, including any trustee in
bankruptcy or other similar official) of the Obligations or of the Transaction Documents, (b) the
absence of any attempt to collect the Obligations from the Transferor or any guarantor or other

2

 

Person, (c) the waiver or consent by the Issuer, the Indenture Trustee, the Note Insurer, or any
other Person with respect to any provision of any instrument or agreement evidencing the
Obligations, any delay or lack of diligence in the enforcement of the Obligations, or any failure
to institute proceedings, file a claim, give any required notices or otherwise protect the
Obligations, (d) any change of the time, manner or place of payment or performance, or any other
term of any of the Obligations, (e) any law, regulation or order of any jurisdiction affecting any
term of any of the Obligations or rights of the Issuer, the Indenture Trustee or the Note Insurer
with respect thereto, (f) the failure by the Indenture Trustee to take any steps to perfect and
maintain perfected its interest in the Receivables, Financed Vehicles or other property acquired
from the Issuer or any security or collateral related to the Obligations, (g) the commencement of
any bankruptcy, insolvency or similar proceeding with respect to the Transferor, the Issuer or the
Depositor or any other affiliate of the Transferor, (h) any full or partial release of, compromise
or settlement with, or agreement not to sue, the Transferor or any guarantor or other person liable
in respect of any Obligations, (i) any release, surrender, cancellation or other discharge of any
evidence of the Obligations or the acceptance of any instrument in renewal or substitution thereof,
(j) any collection, sale, lease or disposition of, or any other enforcement of or realization on,
any Receivable or Financed Vehicle, (k) any assignment, pledge or other transfer of the Obligations
or any evidence thereof, (l) any acceptance of collateral security, guarantors, accommodation
parties or sureties for any or all Obligations, (m) any change in the existing relationship between
the Guarantor and the Transferor including, without limitation, any sale or other transfer of the
stock of the Transferor by the Guarantor or (n) any legal or equitable discharge or defense of the
Guarantor. The Guarantor waives any and all defenses and discharges available to a surety,
guarantor or accommodation co-obligor.

     Section 5. Representations and Warranties. The Guarantor hereby makes the following
representations and warranties as of the date hereof on which the Issuer, the Indenture Trustee and
the Note Insurer will be deemed to have relied in acquiring the Transferred Assets or the pledge of
the Collateral (as defined in the Indenture), as the case may be or, in the case of the Note
Insurer, in issuing the Note Insurance Policy:

     (a) Existence and Power. The Guarantor is a registered bank holding company duly
incorporated, validly existing and in good standing under the laws of its state of organization and
has all power and authority required to carry on its business as it is presently conducted and to
execute, deliver and perform this Guaranty. The Guarantor has obtained all necessary licenses and
approvals, in all jurisdictions where the failure to do so would materially and adversely affect
the financial condition, business or operations of the Guarantor, taken as a whole.

     (b) Corporate Authorization and No Contravention. The execution, delivery and performance by
the Guarantor of this Guaranty has been duly authorized by all necessary corporate action and does
not contravene or constitute a default under (i) any applicable law, rule or regulation, (ii) its
organizational documents or (iii) any material agreement, material contract, order or other
material instrument to which it is a party or its property is subject, except where such
contravention or default would not have a material adverse effect on the enforceability or collectibility of the Receivables or the financial condition, business or operations of the
Guarantor, taken as a whole.

3

 

     (c) No Consent Required. No approval or authorization by, or filing with, any (a) Federal,
state, municipal, foreign or other governmental entity, board, bureau, agency or instrumentality,
(b) administrative or regulatory authority (including any central bank or similar authority) or (c)
court or judicial authority is required in connection with the execution, delivery and performance
by the Guarantor of this Guaranty other than (i) approvals and authorizations that have previously
been obtained and filings that have previously been made or approvals, authorizations or filings
which will be made on a timely basis and (ii) approval, authorizations or filings which, if not
obtained or made, would not have a material adverse effect on the financial condition, business or
operations of the Guarantor, taken as a whole.

     (d) Binding Effect. This Guaranty constitutes the legal, valid and binding obligation of the
Guarantor enforceable against the Guarantor in accordance with its terms, except as limited by
bankruptcy, insolvency, or other similar laws of general application relating to or affecting the
enforcement of creditors’ rights generally and subject to general principles of equity.

     (e) No Proceedings. There are no actions, suits or proceedings pending or, to the knowledge
of the Guarantor, threatened against the Guarantor before or by any Governmental Authority that (i)
assert the invalidity or unenforceability of this Guaranty, (ii) seeking to prevent the
consummation of any of the transactions contemplated by this Guaranty, (iii) seeking any
determination or ruling that would materially and adversely affect the performance by the Guarantor
of its obligations under this Guaranty or (iv) seeking any determination or ruling that would
adversely affect the validity or enforceability of this Guaranty.

     (f) Benefits. The Guarantor has a direct and substantial economic interest in the Transferor
and expects to derive substantial benefits therefrom and from the transaction described in the
Transaction Documents, any loans, credit transactions, financial accommodations, discounts,
purchases of property and other transactions and events resulting in the creation of Obligations
and the other obligations guaranteed hereby, and this Guaranty shall be effective and enforceable
by the Issuer, the Indenture Trustee and the Note Insurer without regard to the receipt, nature or
value of any such benefits.

     (g) Solvency. The Guarantor is not insolvent nor will it be rendered insolvent by virtue of
entering into or carrying out this Guaranty.

     Section 6. Independent Obligations. The obligations of the Guarantor hereunder are undertaken
as primary obligor and independently of the obligations of the Transferor, or any other obligor,
guarantor or Person, and action or actions may be brought or prosecuted directly against the
Guarantor whether or not action is brought first or at all against the Transferor, the Depositor or
any other obligor, guarantor or Person, against any collateral security or any other circumstance
whatsoever, and whether or not the Transferor or any other obligor, guarantor or Person is joined
in any such action or actions, or any claims or demands are made or are not made, or any action is
taken on or against the Transferor, any other obligor, guarantor or Person or any collateral
security or otherwise.

     Section 7. Waivers. The Guarantor waives any and all defenses, claims, setoffs and discharges
of the Transferor, or any other obligor, pertaining to the Obligations. Without

4

 

limiting the
generality of the foregoing or any other provision hereof, to the fullest extent permitted by
applicable law, the Guarantor hereby waives: (a) any defense arising by reason of any invalidity or
unenforceability of the Transferor’s obligations in respect of the Transaction Documents, any
manner in which the Issuer, the Indenture Trustee or the Note Insurer have exercised (or not
exercised) any rights and remedies under the Transaction Documents or the Notes, or any cessation
from any cause whatsoever of the liability of any obligor, guarantor or Person; (b) all
presentments, demands for performance, notices of nonperformance, protests, notices of protest,
notices of dishonor and notices of acceptance of the Transaction Documents (including this
Guaranty); (c) any release of any of the Collateral (as defined in the Indenture) provided under
the Indenture or other Transaction Documents; (d) notice of any indulgences, extensions, consents
or waivers given to the Transferor or any other obligor, guarantor or Person, notice of any
Servicer Termination Event under the Sale and Servicing Agreement, any Default or Event of Default
under the Indenture or default or event of default under any of the other Transaction Documents or
other notice of any kind whatsoever; (e) any right or claim of right to cause the Indenture Trustee
or the Note Insurer to proceed against the Transferor or any other obligor, guarantor or Person in
any particular order, to proceed against or exhaust any collateral security held by the Issuer, the
Indenture Trustee or the Note Insurer at any time or to pursue any other right or remedy whatsoever
at any time; (f) any requirement of diligence or promptness on the Issuer’s, the Indenture
Trustee’s or the Note Insurer’s part in (X) making any claim or demand on or commencing suit
against the Transferor or any other obligor, guarantor or Person, and (Y) otherwise enforcing the
Issuer’s, the Indenture Trustee’s or the Note Insurer’s rights in respect of the Indenture or the
other Transaction Documents; (g) any defense of waiver, release, discharge in bankruptcy, statute
of limitations, res judicata, statute of frauds, anti-deficiency statute, fraud, usury, illegality
or unenforceability which may be available to any person liable in respect of any Obligations, or
any setoff available against, the Issuer, the Indenture Trustee or the Note Insurer to the
Transferor or any other such person, whether or not on account of a related transaction; and (h)
any duty of the Issuer, the Indenture Trustee or the Note Insurer to advise the Guarantor of any
information known to the Issuer, the Indenture Trustee or the Note Insurer regarding the financial
condition of the Transferor or any other circumstance, it being agreed that the Guarantor assumes
responsibility for being and keeping informed of such condition or any such circumstance.

     Without limiting the generality of the foregoing, to the fullest extent permitted by
applicable law, the Guarantor specifically waives all defenses the Guarantor may have based upon
any election of remedies by the Issuer, the Indenture Trustee or the Note Insurer which destroys
the Guarantor’s rights to proceed against the Transferor or any other obligor, guarantor or Person
for reimbursement, contribution or otherwise, including any loss of rights that it may suffer by
reason of any rights, powers, remedies or defenses of the Transferor in connection with any laws
limiting, qualifying or discharging indebtedness of or remedies against the Transferor, and the
Guarantor hereby agrees not to exercise or pursue, so long as any of the Obligations remain
unsatisfied, any right to reimbursement, subrogation, or contribution from the Transferor in
respect of payments hereunder.

     Section 8. Significance of Waivers. The Guarantor represents, warrants and agrees that each
of the waivers set forth herein are made with the Guarantor’s full knowledge of its significance and consequences, with the understanding that events giving rise to any defense
waived may diminish, destroy or otherwise adversely affect rights which the Guarantor

5

 

otherwise may
have against the Transferor or any other obligor, guarantor or Person, or against collateral, and
that under the circumstances the waivers are reasonable.

     Section 9. Reimbursement. The Guarantor shall pay or reimburse all costs and expenses
(including reasonable attorneys’ fees and legal expenses) incurred by the Owner Trustee, the
Indenture Trustee or the Note Insurer in connection with the protection, defense or enforcement of
this Guaranty in any litigation or bankruptcy or insolvency proceedings.

     Section 10. Cumulative Liability. The liability of the Guarantor under this Guaranty is in
addition to and shall be cumulative with all other liabilities of the Guarantor as Guarantor,
surety, endorser, accommodation co-obligor or otherwise of any Obligations or obligation of the
Transferor, without any limitation as to amount.

     Section 11. Nonpetition Covenant. Each party hereto agrees that, prior to the date which is
one year and one day after payment in full of all obligations of each Bankruptcy Remote Party in
respect of all securities issued by any Bankruptcy Remote Party (i) such party shall not authorize
any Bankruptcy Remote Party to commence a voluntary winding up or other voluntary case or other
proceeding seeking liquidation, reorganization or other relief with respect to such Bankruptcy
Remote Party or its debts under any bankruptcy, insolvency or other similar law now or hereafter in
effect in any jurisdiction or seeking the appointment of an administrator, a trustee, receiver,
liquidator, custodian, or other similar official with respect to such Bankruptcy Remote Party or
any substantial part of its property or to consent to any such relief or to the appointment of or
taking possession by any such official in an involuntary case or other proceeding commenced against
such Bankruptcy Remote Party, or to make a general assignment for the benefit of, its creditors
generally, any party hereto or any other creditor of such Bankruptcy Remote Party, and (ii) none of
the parties hereto shall commence or join with any other Person in commencing any proceeding
against such Bankruptcy Remote Party under any bankruptcy, reorganization, liquidation or
insolvency law or statute now or hereafter in effect in any jurisdiction.

     Section 12. Amendments. This Guaranty may not be waived, modified, amended, terminated,
released or otherwise changed except by a writing signed by the Guarantor, the Issuer, the Note
Insurer and the Indenture Trustee. The Guarantor may not assign its obligations hereunder without
the prior written consent of the Note Insurer, the Issuer and the Indenture Trustee.

     Section 13. Governing Law. THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE INTERNAL, SUBSTANTIVE LAWS OF THE STATE OF NEW YORK INCLUDING SECTIONS 5-1401 AND 5-1402
OF THE NEW YORK GENERAL OBLIGATIONS LAW BUT EXCLUDING TO THE MAXIMUM EXTENT PERMITTED BY LAW ALL
OTHER RULES THEREOF RELATING TO CONFLICTS OF LAW AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Section 14. Submission to Jurisdiction. Each of the parties hereto hereby irrevocably and
unconditionally:

6

 

     (a) submits for itself and its property in any legal action or proceeding relating to this
Guaranty or any documents executed and delivered in connection herewith, or for recognition and
enforcement of any judgment in respect thereof, to the nonexclusive general jurisdiction of the
courts of the State of New York, the courts of the United States of America for the Southern
District of New York and appellate courts from any thereof;

     (b) consents that any such action or proceeding may be brought in such courts and waives any
objection that it may now or hereafter have to the venue of such action or proceeding in any such
court or that such action or proceeding was brought in an inconvenient court and agrees not to
plead or claim the same; and

     (c) agrees that nothing herein shall affect the right to effect service of process in any
manner permitted by law or shall limit the right to sue in any other jurisdiction.

     Section 15. Counterparts. This Guaranty may be executed in any number of counterparts, each
of which so executed shall be deemed to be an original, but all such counterparts shall together
constitute but one and the same instrument.

     Section 16. Severability of Provisions. If any one or more of the covenants, agreements,
provisions or terms of this Guaranty shall be for any reason whatsoever held invalid, then such
covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants,
agreements, provisions or terms of this Guaranty and shall in no way affect the validity or
enforceability of the other provisions of this Guaranty.

     Section 17. Benefits; Third-party Beneficiary. This Guaranty shall be effective as of the
date hereof, without further act, condition or acceptance by the Issuer, the Indenture Trustee or
the Note Insurer, shall be binding upon the Guarantor and the successors and assigns of the
Guarantor and shall inure to the benefit of the Issuer, the Indenture Trustee and the Note Insurer
and their respective participants, successors and assigns.

     Section 18. Termination. This Guaranty shall terminate upon the payment in full of the
principal balance of the Notes plus any accrued interest thereon and payment in full of all amounts
owed to the Note Insurer pursuant to the terms of the Insurance Agreement; provided, however, that
the provisions of Section 3(c) hereof shall survive any termination of this Guaranty.

     Section 19. Limitation of Liability. Notwithstanding anything contained herein to the
contrary, this Guaranty has been executed and delivered by U.S. Bank Trust National Association,
not in its individual capacity but solely as Owner Trustee and in no event shall it have any
liability for the representation, warranties, covenants agreements or other obligations of the
Issuer hereunder or under the Notes or any of the other Transaction Documents or in any of the
certificates, notices or agreements delivered pursuant thereto, as to all of which recourse shall
be had solely to the assets of the Issuer. Under no circumstances shall the Owner Trustee be
personally liable for the payment of any indebtedness or expense of the Issuer or be liable for the
breach or failure of any obligation, representation, warranty or covenant made or undertaken by
the Issuer under the Transaction Documents. For the purposes of this Guaranty, in the
performance of its duties or obligations hereunder, the Owner Trustee shall be subject to, and

7

 

entitled to the benefits of, the terms and provisions of Articles VI, VII and
VIII of the Trust Agreement.

8

 

     IN WITNESS WHEREOF, this Guaranty has been duly executed by the parties hereto as of
the date and year first above written.

	 	 	 	 	 
	 	BANCO SANTANDER, S.A., as Guarantor

 	 
	 	By:  	/s/
Jose Antonio Soler
 	 
	 	 	Name: Jose Antonio Soler	 
	 	 	Title:   	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	ACKNOWLEDGED:

WELLS FARGO BANK, NATIONAL ASSOCATION, not in its individual capacity, but solely as Indenture Trustee

 	 
	 	By:  	/s/ Marianna C. Stershic
 	 
	 	 	Name:  	Marianna C. Stershic 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	SANTANDER DRIVE AUTO RECEIVABLES TRUST 2007-2

By: U.S. BANK TRUST NATIONAL ASSOCIATION, not in its individual capacity, but solely as Owner Trustee

 	 
	 	By:  	/s/ Nicole Poole
 	 
	 	 	Name:  	Nicole Poole 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	U.S. BANK TRUST NATIONAL ASSOCIATION, not in its
individual capacity, but solely as Owner Trustee

 	 
	 	By:  	/s/ Nicole Poole
 	 
	 	 	Name:  	Nicole Poole 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	MBIA INSURANCE CORPORATION

 	 
	 	By:  	/s/ Amy R. Gonch
 	 
	 	 	Name:  	Amy  Gonch 	 
	 	 	Title:  	Assistant Secretary

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