Document:

exv4w4

 

Exhibit 4.4

Execution Copy

ENDORSEMENT NO. 1 TO

FINANCIAL GUARANTY INSURANCE POLICY

	 	 	 
	FINANCIAL SECURITY

	 	350 Park Avenue
	ASSURANCE INC.

	 	New York, New York 10022

	 	 	 
	OBLIGOR:

	 	AmeriCredit Automobile Receivables Trust 2004-D-F
	 
	 	 
	OBLIGATIONS:

	 	$145,000,000 Class A-1 2.08% Asset Backed Notes, Series 2004-D-F
	

	 	$236,000,000 Class A-2 2.53% Asset Backed Notes, Series 2004-D-F
	

	 	$197,000,000 Class A-3 2.98% Asset Backed Notes, Series 2004-D-F
	

	 	$172,000,000 Class A-4 3.43% Asset Backed Notes, Series 2004-D-F
	 
	 	 
	Policy No.:

	 	51589-N
	 
	 	 
	Date of Issuance:

	 	November 9, 2004

     1. Definitions. For all purposes of this Policy, the terms specified
below shall have the meanings or constructions provided below. Capitalized
terms used herein and not otherwise defined herein shall have the meanings
provided in the Indenture or the Sale and Servicing Agreement unless otherwise
specified.

     “Business Day” means any day other than a Saturday, Sunday, legal holiday
or other day on which commercial banking institutions in Wilmington, Delaware,
Fort Worth, Texas, New York City, New York or any other location of any
successor Servicer, successor Owner Trustee or successor Trust Collateral Agent
are authorized or obligated by law, executive order or governmental decree to
be closed.

     “Holder” shall have the meaning set forth in the Indenture; provided,
however that “Holder” shall not include the Obligor or any affiliates or
successors thereof in the event the Obligor, or any such affiliate or
successor, is a registered or beneficial owner of the Obligations.

     “Indenture” means the Indenture, dated as of October 26, 2004, between the
Obligor and JPMorgan Chase Bank, as Trustee and Trust Collateral Agent, as
amended from time to time with the consent of Financial Security.

     “Indenture Trustee” means JPMorgan Chase Bank, in its capacity as Trustee
under the Indenture and any successor in such capacity.

     “Policy” means this Financial Guaranty Insurance Policy and includes each
endorsement thereto.

     “Receipt” and “Received” mean actual delivery to Financial Security and to
the Fiscal Agent (as defined below), if any, prior to 12:00 noon, New York City
time, on a Business Day; delivery either on a day that is not a Business Day,
or after 12:00 noon, New York City time, shall be deemed to be receipt on the
next succeeding Business Day.

 

 

	 	 	 
	Policy No.: 51589 -N

	 	Date of Issuance: November 9, 2004

If any notice or certificate given hereunder by the Trust Collateral Agent
is not in proper form or is not properly completed, executed or delivered, it
shall be deemed not to have been Received, and Financial Security or its Fiscal
Agent shall promptly so advise the Trust Collateral Agent and the Trust
Collateral Agent may submit an amended notice.

     “Sale and Servicing Agreement” means the Sale and Servicing Agreement
dated as of October 26, 2004 among the Obligor, AmeriCredit Financial Services,
Inc., as Servicer, AFS Funding Trust, as Seller, Systems & Services
Technologies, Inc. as Backup Servicer and JPMorgan Chase Bank, as Trust
Collateral Agent, as such agreement may be amended, supplemented or otherwise
modified from time to time in accordance with the terms thereof.

     “Scheduled Payments” means, as to each Insured Distribution Date, payments
which are required to be made to Holders in accordance with the original terms
of the Obligations when issued and without regard to any subsequent amendment
or modification of the Obligations or of the Indenture except amendments or
modifications to which Financial Security has given its prior written consent,
which payments are (i) the Noteholders’ Interest Distributable Amount with
respect to the related Distribution Date, (ii) the Noteholders’ Remaining
Parity Deficit Amount with respect to the related Distribution Date and (iii)
with respect to the Final Scheduled Distribution Date for any class of
Obligations, the outstanding principal amount of such class on such Final
Scheduled Distribution Date, after taking into account reductions on such date
of such outstanding principal amount from all sources other than this Policy.
Scheduled Payments do not include payments which become due on an accelerated
basis as a result of (a) a default by the Obligor, (b) an election by the
Obligor to pay principal on an accelerated basis, (c) the occurrence of an
Event of Default under the Indenture or (d) any other cause, unless Financial
Security elects, in its sole discretion, to pay in whole or in part such
principal due upon acceleration, together with any accrued interest to the date
of acceleration. In the event Financial Security does not so elect, this
Policy will continue to guarantee payment on the Obligations in accordance with
their original terms. Scheduled Payments shall not include (x) any portion of
a Noteholders’ Interest Distributable Amount due to Holders because the
appropriate notice and certificate for payment in proper form as required by
paragraph 2 hereof was not timely Received by Financial Security or (y) any
portion of a Noteholders’ Interest Distributable Amount due to Holders
representing interest on any Noteholders’ Interest Carryover Amount accrued
from and including the date of payment of the amount of such Noteholders’
Interest Carryover Amount, unless in each case, Financial Security elects, in
its sole discretion, to pay such amount in whole or in part, pursuant hereto.
Scheduled Payments shall not include any amounts due in respect of the
Obligations attributable to any increase in interest rate, penalty or other sum
payable by the Obligor by reason of any default or event of default in respect
of the Obligations, or by reason of any deterioration of the credit worthiness
of the Obligor, nor shall Scheduled Payments include, nor shall coverage be
provided under this Policy in respect of, any taxes, withholding or other
charge with respect to any Holder imposed by any governmental authority due in
connection with the payment of any Scheduled Payment to a Holder.

2

 

	 	 	 
	Policy No.: 51589 -N

	 	Date of Issuance: November 9, 2004

     “Term Of This Policy” means the period from and including the Date of
Issuance to and including the date on which (i) all Scheduled Payments have
been paid or deemed to be paid within the meaning of Section 4.1 of the
Indenture; (ii) any period during which any Scheduled Payment could have been
avoided in whole or in part as a preference payment under applicable
bankruptcy, insolvency, receivership or similar law shall have expired and
(iii) if any proceedings requisite to avoidance as a preference payment have
been commenced prior to the occurrence of (i) and (ii), a final and
nonappealable order in resolution of each such proceeding has been entered.

     “Trust Collateral Agent” means JPMorgan Chase Bank, in its capacity as
Trust Collateral Agent under the Indenture, acting as agent for the Indenture
Trustee in accordance with the terms of the Indenture, and any successor in
such capacity.

     2. Notices and Conditions to Payment in Respect of Scheduled Payments.
Following Receipt by Financial Security of a notice and certificate from the
Trust Collateral Agent in the form attached as Exhibit A to this Endorsement,
Financial Security will pay any amount payable hereunder in respect of
Scheduled Payments on the Obligations out of the funds of Financial Security on
the later to occur of (a) 12:00 noon, New York City time, on the third Business
Day following such Receipt; and (b) 12:00 noon, New York City time, on the date
on which such payment is due on the Obligations. Payments due hereunder in
respect of Scheduled Payments will be disbursed to the Trust Collateral Agent
by wire transfer of immediately available funds.

     Financial Security shall be entitled to pay any amount hereunder in
respect of Scheduled Payments on the Obligations, including any amount due on
the Obligations on an accelerated basis, whether or not any notice and
certificate shall have been Received by Financial Security as provided above;
provided, however, that by acceptance of this Policy the Trust Collateral Agent
agrees to provide to Financial Security, upon Financial Security’s request to
the Trust Collateral Agent, a notice and certificate in respect of any such
payments made by Financial Security. Financial Security shall be entitled to
pay hereunder any amount that becomes due on the Obligations on an accelerated
basis at any time or from time to time after such amount becomes due, in whole
or in part, prior to the scheduled date of payment thereof; Scheduled Payments
insured hereunder shall not include interest, in respect of principal paid
hereunder on an accelerated basis, accruing from and after the date of such
payment of principal. Financial Security’s obligations hereunder in respect of
Scheduled Payments shall be discharged to the extent funds are disbursed by
Financial Security as provided herein whether or not such funds are properly
applied by the Trust Collateral Agent.

     3. Notices and Conditions to Payment in Respect of Scheduled Payments
Avoided as Preference Payments. If any Scheduled Payment is avoided as a
preference payment under applicable bankruptcy, insolvency, receivership or
similar law, Financial Security will pay such amount out of the funds of
Financial Security on the later of (a) the date when due to be paid pursuant to
the Order referred to below or (b) the first to occur of (i) the fourth
Business Day following Receipt by Financial Security from the Trust Collateral
Agent of (A) a certified copy of the order (the “Order”) of the court or other
governmental body that exercised jurisdiction to the effect that the Holder is

3

 

	 	 	 
	Policy No.: 51589 -N

	 	Date of Issuance: November 9, 2004

required to return Scheduled Payments made with respect to the Obligations
during the Term Of This Policy because such payments were avoidable as
preference payments under applicable bankruptcy law, (B) a certificate of the
Holder that the Order has been entered and is not subject to any stay and (C)
an assignment duly executed and delivered by the Holder, in such form as is
reasonably required by Financial Security, and provided to the Holder by
Financial Security, irrevocably assigning to Financial Security all rights and
claims of the Holder relating to or arising under the Obligations against the
estate of the Obligor or otherwise with respect to such preference payment or
(ii) the date of Receipt by Financial Security from the Trust Collateral Agent
of the items referred to in clauses (A), (B) and (C) above if, at least four
Business Days prior to such date of Receipt, Financial Security shall have
Received written notice from the Trust Collateral Agent that such items were to
be delivered on such date and such date was specified in such notice. Such
payment shall be disbursed to the receiver, conservator, debtor-in-possession
or trustee in bankruptcy named in the Order and not to the Trust Collateral
Agent or any Holder directly (unless a Holder has previously paid such amount
to the receiver, conservator, debtor-in-possession or trustee in bankruptcy
named in the Order, in which case such payment shall be disbursed to the Trust
Collateral Agent for distribution to such Holder upon proof of such payment
reasonably satisfactory to Financial Security). In connection with the
foregoing, Financial Security shall have the rights provided pursuant to
Section 6.2 of the Sale and Servicing Agreement.

     4. Governing Law. This Policy shall be construed in accordance with, and
this Policy and all matters arising out of or relating in any way to this
Policy shall be governed by, the law of the state of New York.

     5. Fiscal Agent. At any time during the Term Of This Policy, Financial
Security may appoint a fiscal agent (the “Fiscal Agent”) for purposes of this
Policy by written notice to the Trust Collateral Agent at the notice address
specified in the Indenture specifying the name and notice address of the Fiscal
Agent. From and after the date of receipt of such notice by the Trust
Collateral Agent, (i) copies of all notices and documents required to be
delivered to Financial Security pursuant to this Policy shall be simultaneously
delivered to the Fiscal Agent and to Financial Security and shall not be deemed
Received until Received by both, and (ii) all payments required to be made by
Financial Security under this Policy may be made directly by Financial Security
or by the Fiscal Agent on behalf of Financial Security. The Fiscal Agent is
the agent of Financial Security only and the Fiscal Agent shall in no event be
liable to any Holder for any acts of the Fiscal Agent or any failure of
Financial Security to deposit, or cause to be deposited, sufficient funds to
make payments due under the Policy.

     6. Waiver of Defenses. To the fullest extent permitted by applicable law,
Financial Security agrees not to assert, and hereby waives, for the benefit of
each Holder, all rights (whether by counterclaim, setoff or otherwise) and
defenses (including, without limitation, the defense of fraud), whether
acquired by subrogation, assignment or otherwise, to the extent that such
rights and defenses may be available to Financial Security to avoid payment of
its obligations under this Policy in accordance with the express provisions of
this Policy.

4

 

	 	 	 
	Policy No.: 51589 -N

	 	Date of Issuance: November 9, 2004

     7. Notices. All notices 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 Financial Security as follows:

Financial Security Assurance Inc.

350 Park Avenue

New York, NY 10022

Attention: Managing Director - Transaction Oversight Department

Re: AmeriCredit Automobile Receivables Trust 2004-D-F

Policy No.: 51589-N

Telecopy No.: (212) 339-3518

Confirmation: (212) 826-0100

     Financial Security may specify a different address or addresses by writing
mailed or delivered to the Trust Collateral Agent.

     8. Priorities. In the event that any term or provision of the face of
this Policy is inconsistent with the provisions of this Endorsement, the
provisions of this Endorsement shall take precedence and shall be binding.

     9. Exclusions From Insurance Guaranty Funds. This Policy is not covered
by the Property/Casualty Insurance Security Fund specified in Article 76 of the
New York Insurance Law. This Policy is not covered by the Florida Insurance
Guaranty Association created under Part II of Chapter 631 of the Florida
Insurance Code. In the event that Financial Security were to become insolvent,
any claims arising under this Policy are excluded from coverage by the
California Insurance Guaranty Association, established pursuant to Article 14.2
of Chapter 1 of Part 2 of Division 1 of the California Insurance Code.

     10. Surrender of Policy. The Trust Collateral Agent shall surrender this
Policy to Financial Security for cancellation upon expiration of the Term Of
This Policy.

     IN WITNESS WHEREOF, FINANCIAL SECURITY ASSURANCE INC. has caused this
Endorsement No. 1 to be executed by its Authorized Officer.

	 	 	 	 	 
	 	 	FINANCIAL SECURITY ASSURANCE INC.
	 	 	
By
	 	/s/ M. Douglas Watson, Jr

Authorized Officer

5

 

EXHIBIT A

To Endorsement No. 1

NOTICE OF CLAIM AND CERTIFICATE

(Letterhead of Trust Collateral Agent)

Financial Security Assurance Inc.

350 Park Avenue

New York, NY 10022

     Re: AmeriCredit Automobile Receivables Trust 2004-D-F

     The undersigned, a duly authorized officer of JPMorgan Chase Bank (the
“Trust Collateral Agent”), hereby certifies to Financial Security Assurance
Inc. (“Financial Security”), with reference to Financial Guaranty Insurance
Policy No. 51589-N dated October 26, 2004, (the “Policy”) issued by Financial
Security in respect of the $145,000,000 Class A-1 2.08% Asset Backed Notes,
$236,000,000 Class A-2 2.53% Asset Backed Notes, $197,000,000 Class A-3 2.98%
Asset Backed Notes and $172,000,000 Class A-4 3.43% Asset Backed Notes of the
above-referenced Trust (the “Obligations”), that:

     (i) The Trust Collateral Agent is the Trust Collateral Agent for the
Holders under the Indenture.

     (ii) The sum of all amounts on deposit (or scheduled to be on deposit) in
the Note Distribution Account and available for distribution to the Holders
pursuant to the Indenture will be $   (the “Shortfall”) less than the
aggregate amount of Scheduled Payments due on    .

     (iii) The Trust Collateral Agent is making a claim under the Policy for
the Shortfall to be applied to the payment of Scheduled Payments.

     (iv) The Trust Collateral Agent agrees that, following receipt of funds
from Financial Security, it shall (a) hold such amounts in trust and apply the
same directly to the payment of Scheduled Payments on the Obligations when due;
(b) not apply such funds for any other purpose; (c) not commingle such funds
with other funds held by the Trust Collateral Agent and (d) maintain an
accurate record of such payments with respect to each Obligation and the
corresponding claim on the Policy and proceeds thereof, and, if the Obligation
is required to be surrendered or presented for such payment, shall stamp on
each such Obligation the legend “$[insert applicable amount] paid by Financial
Security and the balance hereof has been cancelled and reissued” and then shall
deliver such Obligation to Financial Security.

     (v) The Trust Collateral Agent, on behalf of the Holders, hereby assigns
to Financial Security the rights of the Holders with respect to the Obligations
to the extent of any payments under the Policy, including, without limitation,
any amounts due to the

A-1

 

Holders in respect of securities law violations arising from the offer and
sale of the Obligations. The foregoing assignment is in addition to, and not
in limitation of, rights of subrogation otherwise available to Financial
Security in respect of such payments. Payments to Financial Security in
respect of the foregoing assignment shall in all cases be subject to and
subordinate to the rights of the Holders to receive all Scheduled Payments in
respect of the Obligations. The Trust Collateral Agent shall take such action
and deliver such instruments as may be reasonably requested or required by
Financial Security to effectuate the purpose or provisions of this clause (v).

     (vi) The Trust Collateral Agent, on behalf of the Holders, hereby appoints
Financial Security as agent and attorney-in-fact for the Trust Collateral Agent
and each such Holder in any legal proceeding with respect to the Obligations.
The Trust Collateral Agent hereby agrees that, so long as an Insurer Default
(as defined in the Indenture) shall not exist, Financial Security may at any
time during the continuation of any proceeding by or against the Obligor under
the United States Bankruptcy Code or any other applicable bankruptcy,
insolvency, receivership, rehabilitation or similar law (an “Insolvency
Proceeding”) direct all matters relating to such Insolvency Proceeding,
including without limitation, (A) all matters relating to any claim in
connection with an Insolvency Proceeding seeking the avoidance as a
preferential transfer of any payment made with respect to the Obligations (a
“Preference Claim”), (B) the direction of any appeal of any order relating to
any Preference Claim at the expense of Financial Security but subject to
reimbursement as provided in the Insurance Agreement and (C) the posting of any
surety, supersedeas or performance bond pending any such appeal. In addition,
the Trust Collateral Agent hereby agrees that Financial Security shall be
subrogated to, and the Trust Collateral Agent on its behalf and on behalf of
each Holder, hereby delegates and assigns, to the fullest extent permitted by
law, the rights of the Trust Collateral Agent and each Holder in the conduct of
any Insolvency Proceeding, including, without limitation, all rights of any
party to an adversary proceeding or action with respect to any court order
issued in connection with any such Insolvency Proceeding.

     (vii) Payment should be made by wire transfer directed to [SPECIFY
ACCOUNT].

     Unless the context otherwise requires, capitalized terms used in this
Notice of Claim and Certificate and not defined herein shall have the meanings
provided in the Policy.

A-2

 

     IN WITNESS WHEREOF, the Trust Collateral Agent has executed and delivered
this Notice of Claim and Certificate as of the    th day of    , 20   .

	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, 
as Trust Collateral Agent
	 
	 	 	 	 
	

	 	By
	 	

	

	 	Title
	 	 

For Financial Security or Fiscal Agent Use Only

Wire transfer sent on                     By                                       

Confirmation Number                                       

A-3exv10w1

 

Exhibit 10.1

Execution Copy

PURCHASE AGREEMENT

between

AFS FUNDING TRUST

Purchaser

and

AMERICREDIT FINANCIAL SERVICES, INC.

Seller

Dated as of October 26, 2004

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page

	ARTICLE I. DEFINITIONS
	 	 	1	 
	SECTION 1.1 General
	 	 	1	 
	SECTION 1.2 Specific Terms
	 	 	1	 
	SECTION 1.3 Usage of Terms
	 	 	2	 
	SECTION 1.4 [Reserved]
	 	 	2	 
	SECTION 1.5 No Recourse
	 	 	2	 
	SECTION 1.6 Action by or Consent of Noteholders and Certificateholder
	 	 	3	 
	SECTION 1.7 Material Adverse Effect
	 	 	3	 
	ARTICLE II. CONVEYANCE OF THE RECEIVABLES AND THE OTHER CONVEYED PROPERTY
	 	 	3	 
	SECTION 2.1 Conveyance of the Receivables and the Other Conveyed Property
	 	 	3	 
	SECTION 2.2 [Reserved]
	 	 	4	 
	ARTICLE III. REPRESENTATIONS AND WARRANTIES
	 	 	4	 
	SECTION 3.1 Representations and Warranties of Seller
	 	 	4	 
	SECTION 3.2 Representations and Warranties of Purchaser
	 	 	6	 
	ARTICLE IV. COVENANTS OF SELLER
	 	 	8	 
	SECTION 4.1 Protection of Title of Purchaser
	 	 	8	 
	SECTION 4.2 Other Liens or Interests
	 	 	9	 
	SECTION 4.3 Costs and Expenses
	 	 	9	 
	SECTION 4.4 Indemnification
	 	 	9	 
	ARTICLE V. REPURCHASES
	 	 	11	 
	SECTION 5.1 Repurchase of Receivables Upon Breach of Warranty
	 	 	11	 
	SECTION 5.2 Reassignment of Purchased Receivables
	 	 	12	 
	SECTION 5.3 Waivers
	 	 	12	 
	ARTICLE VI. MISCELLANEOUS
	 	 	13	 
	SECTION 6.1 Liability of Seller
	 	 	13	 
	SECTION 6.2 Merger or Consolidation of Seller or Purchaser
	 	 	13	 
	SECTION 6.3 Limitation on Liability of Seller and Others
	 	 	13	 
	SECTION 6.4 Seller May Own Notes or the Certificate
	 	 	14	 
	SECTION 6.5 Amendment
	 	 	14	 
	SECTION 6.6 Notices
	 	 	15	 
	SECTION 6.7 Merger and Integration
	 	 	15	 
	SECTION 6.8 Severability of Provisions
	 	 	15	 
	SECTION 6.9 Intention of the Parties
	 	 	15	 
	SECTION 6.10 Governing Law
	 	 	16	 
	SECTION 6.11 Counterparts
	 	 	16	 
	SECTION 6.12 Conveyance of the Receivables and the Other Conveyed Property to the Issuer
	 	 	16	 
	SECTION 6.13 Nonpetition Covenant
	 	 	16	 

i

 

	 	 	 	 	 
	 	 	Page

	SECTION 6.14 Benefits of Purchase Agreement
	 	 	16	 

SCHEDULES

Schedule A — Schedule of Receivables

Schedule B — Representations and Warranties from AFS as to the Receivables

 ii 

 

 

PURCHASE AGREEMENT

          THIS PURCHASE AGREEMENT, dated as of October 26, 2004, executed among AFS
Funding Trust, a Delaware statutory trust, as purchaser (“Purchaser”) and
AmeriCredit Financial Services, Inc., a Delaware corporation, as Seller
(“Seller”).

WITNESSETH:

          WHEREAS, Purchaser has agreed to purchase from the Seller, and the Seller,
pursuant to this Agreement, is transferring to Purchaser the Receivables and
Other Conveyed Property.

          NOW, THEREFORE, in consideration of the premises and the mutual agreements
hereinafter contained, and for other good and valuable consideration, the
receipt of which is acknowledged, Purchaser and the Seller, intending to be
legally bound, hereby agree as follows:

ARTICLE I.

DEFINITIONS

          SECTION 1.1 General. The specific terms defined in this Article include the
plural as well as the singular. The words “herein,” “hereof” and “hereunder”
and other words of similar import refer to this Agreement as a whole and not to
any particular Article, Section or other subdivision, and Article, Section,
Schedule and Exhibit references, unless otherwise specified, refer to Articles
and Sections of and Schedules and Exhibits to this Agreement. Capitalized
terms used herein without definition shall have the respective meanings
assigned to such terms in the Sale and Servicing Agreement dated as of October
26, 2004, by and among AFS Funding Trust (as Seller), AmeriCredit Financial
Services, Inc. (in its individual capacity and as Servicer), AmeriCredit
Automobile Receivables Trust 2004-D-F (as Issuer), JPMorgan Chase Bank (as
Trust Collateral Agent) and Systems & Services Technologies, Inc. (as Backup
Servicer).

          SECTION 1.2 Specific Terms. Whenever used in this Agreement, the following
words and phrases, unless the context otherwise requires, shall have the
following meanings:

          “Agreement” shall mean this Purchase Agreement and all amendments hereof
and supplements hereto.

          “Closing Date” means November 9, 2004.

          “Issuer” means AmeriCredit Automobile Receivables Trust 2004-D-F.

          “Other Conveyed Property” means all property conveyed by the Seller to the
Purchaser pursuant to this Agreement and by the Purchaser to the Trust pursuant
to Sections
2.1(b),(c),(d),(e),(f), (h) and (i) of the Sale and Servicing Agreement.

 

 

          “Owner Trustee” means Wilmington Trust Company, as Owner Trustee appointed
and acting pursuant to the Trust Agreement.

          “Receivables” means the Receivables listed on the Schedule of Receivables
attached hereto.

          “Related Documents” means, the Notes, the Certificate, the Custodian
Agreement, the Sale and Servicing Agreement, the Indenture, the Trust
Agreement, the Note Policy, the Spread Account Agreement, the Spread Account
Agreement Supplement, the Insurance Agreement, the Lockbox Agreement and the
Underwriting Agreement. The Related Documents to be executed by any party are
referred to herein as “such party’s Related Documents,” “its Related Documents”
or by a similar expression.

          “Repurchase Event” means the occurrence of a breach of any of the Seller’s
representations and warranties hereunder or any other event which requires the
repurchase of a Receivable by the Seller under the Sale and Servicing
Agreement.

          “Sale and Servicing Agreement” means the Sale and Servicing Agreement
referred to in Section 1.1 hereof.

          “Schedule of Representations” means the Schedule of Representations and
Warranties attached hereto as Schedule B.

          “Schedule of Receivables” means the schedule of Receivables sold and
transferred pursuant to this Agreement which is attached hereto as Schedule A.

          “Trust Collateral Agent” means JPMorgan Chase Bank, as trust collateral
agent and any successor trust collateral agent appointed and acting pursuant to
the Indenture.

          “Trustee” means JPMorgan Chase Bank, as trustee and any successor trustee
appointed and acting pursuant to the Indenture.

          SECTION 1.3 Usage of Terms. With respect to all terms used in this Agreement,
the singular includes the plural and the plural the singular; words importing
any gender include the other gender; references to “writing” include printing,
typing, lithography, and other means of reproducing words in a visible form;
references to agreements and other contractual instruments include all
subsequent amendments thereto or changes therein entered into in accordance
with their respective terms and not prohibited by this Agreement or the Sale
and Servicing Agreement; references to Persons include their permitted
successors and assigns; and the terms “include” or “including” mean “include
without limitation” or “including without limitation.”

          SECTION 1.4 [Reserved].

          SECTION 1.5 No Recourse. Without limiting the obligations of Seller hereunder,
no recourse may be taken, directly or indirectly, under this Agreement or any
certificate or other writing delivered in connection herewith or therewith,
against any stockholder, officer or director, as such, of Seller, or of any
predecessor or successor of Seller.

2

 

          SECTION 1.6 Action by or Consent of Noteholders and Certificateholder.
Whenever any provision of this Agreement refers to action to be taken, or
consented to, by Noteholders or the Certificateholder, such provision shall be
deemed to refer to the Certificateholder or Noteholder, as the case may be, of
record as of the Record Date immediately preceding the date on which such
action is to be taken, or consent given, by Noteholders or the
Certificateholder. Solely for the purposes of any action to be taken, or
consented to, by Noteholders or the Certificateholder, any Note or Certificate
registered in the name of the Seller or any Affiliate thereof shall be deemed
not to be outstanding; provided, however, that, solely for the purpose of
determining whether the Trustee or the Trust Collateral Agent is entitled to
rely upon any such action or consent, only Notes or Certificates which the
Owner Trustee, the Trustee or the Trust Collateral Agent, respectively, knows
to be so owned shall be so disregarded.

          SECTION 1.7 Material Adverse Effect. Whenever a determination is to be made
under this Agreement as to whether a given event, action, course of conduct or
set of facts or circumstances could or would have a material adverse effect on
the Noteholders (or any similar or analogous determination), such determination
shall be made without taking into account the funds available from claims under
the Note Policy.

ARTICLE II.

CONVEYANCE OF THE RECEIVABLES

AND THE OTHER CONVEYED PROPERTY

          SECTION 2.1 Conveyance of the Receivables and the Other Conveyed Property.

     (a) Subject to the terms and conditions of this Agreement, Seller
hereby sells, transfers, assigns, and otherwise conveys to Purchaser
without recourse (but without limitation of its obligations in this
Agreement), and Purchaser hereby purchases, all right, title and interest
of Seller in and to the following described property (collectively, the
“Receivables and the Other Conveyed Property”):

          (1) the Receivables and all moneys received thereon after the Cutoff
Date,

          (2) the Other Conveyed Property conveyed to Purchaser by Selle
pursuant to this Agreement including (a) the security interests in
the Financed Vehicles granted by Obligors pursuant to the Receivables and
any other interest of the Seller in such Financed Vehicles, (b) any
proceeds and the right to receive any proceeds with respect to the
Receivables from claims on any physical damage, credit life or disability
insurance policies covering Financed Vehicles or Obligors and any
proceeds from the liquidation of the Receivables, (c) any proceeds from
any Receivable

3

 

repurchased by a Dealer, pursuant to a Dealer Agreement,
as a result of a breach of representation or warranty in the related
Dealer Agreement, (d) any proceeds from any Receivable repurchased by a
Third-Party Lender, pursuant to an Auto Loan Purchase and Sale Agreement,
as a result of a breach of representation or warranty in the related Auto
Loan Purchase and Sale Agreement, (e) all rights under any Service
Contracts on the related Financed Vehicles and (f) the related Receivable
Files,

          (3) all of the Seller’s (a) Accounts, (b) Chattel Paper, (c)
Documents, (d) Instruments and (e) General Intangibles (as such terms are
defined in the applicable UCC) relating to the property described in
items (1) and (2), and

          (4) all proceeds and investments with respect to items (1), (2) and
(3) above.

     (b) Simultaneously with the conveyance of the Receivables and the
Other Conveyed Property to Purchaser, Purchaser has paid or caused to be
paid to or upon the order of Seller an amount equal to the book value of
the Receivables, as set forth on the books and records of Seller, a
portion by wire transfer of immediately available funds and the remainder
as a contribution to the capital of the Purchaser (a wholly-owned
subsidiary of Seller).

          SECTION 2.2 [Reserved]

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

          SECTION 3.1 Representations and Warranties of Seller. Seller makes the
following representations and warranties as of the date hereof and the Closing
Date, on which Purchaser relies in purchasing the Receivables and the Other
Conveyed Property and in transferring the Receivables and the Other Conveyed
Property to the Issuer under the Sale and Servicing Agreement and on which the
Insurer will rely in issuing the Note Policy. Such representations are made as
of the execution and delivery of this Agreement, but shall survive the sale,
transfer and assignment of the Receivables and the Other Conveyed Property
hereunder, and the sale, transfer and assignment thereof by Purchaser to the
Issuer under the Sale and Servicing Agreement. Seller and Purchaser agree that
Purchaser will assign to Issuer all Purchaser’s rights under this Agreement and
that the Trustee will thereafter be entitled to enforce this Agreement against
Seller in the Trustee’s own name on behalf of the Noteholders.

     (a) Schedule of Representations. The representations and warranties
set forth on the Schedule of Representations with respect to the
Receivables as of the date hereof and the Closing Date, are true and
correct.

     (b) Organization and Good Standing. Seller has been duly organized
and is validly existing as a corporation in good standing under the laws
of the State of Delaware, with power and authority to own its properties
and to conduct its business as such properties are currently owned and
such business is currently conducted, and had at all relevant times, and
now has, power, authority and legal right to acquire, own and sell the
Receivables and the Other Conveyed Property to be transferred to
Purchaser.

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     (c) Due Qualification. Seller is duly qualified to do business as a
foreign corporation in good standing, and has obtained all necessary
licenses and approvals in all jurisdictions in which the ownership or
lease of its property or the conduct of its business requires such
qualification.

     (d) Power and Authority. Seller has the power and authority to
execute and deliver this Agreement and its Related Documents and to carry
out its terms and their terms, respectively; Seller has full power and
authority to sell and assign the Receivables and the Other Conveyed
Property to be sold and assigned to and deposited with Purchaser
hereunder and has duly authorized such sale and assignment to Purchaser
by all necessary corporate action; and the execution, delivery and
performance of this Agreement and Seller’s Related Documents have been
duly authorized by Seller by all necessary corporate action.

     (e) Valid Sale; Binding Obligations. This Agreement and Seller’s
Related Documents have been duly executed and delivered, shall effect a
valid sale, transfer and assignment of the Receivables and the Other
Conveyed Property to the Purchaser, enforceable against Seller and
creditors of and purchasers from Seller; and this Agreement and Seller’s
Related Documents constitute legal, valid and binding obligations of
Seller enforceable in accordance with their respective terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization
or other similar laws affecting the enforcement of creditors’ rights
generally and by equitable limitations on the availability of specific
remedies, regardless of whether such enforceability is considered in a
proceeding in equity or at law.

     (f) No Violation. The consummation of the transactions contemplated
by this Agreement and the Related Documents, and the fulfillment of the
terms of this Agreement and the Related Documents, shall not conflict
with, result in any breach of any of the terms and provisions of, or
constitute (with or without notice, lapse of time or both) a default
under, the articles of incorporation or bylaws of Seller, or any
indenture, agreement, mortgage, deed of trust or other instrument to
which Seller is a party or by which it is bound, or result in the
creation or imposition of any Lien upon any of its properties pursuant to
the terms of any such indenture, agreement, mortgage, deed of trust or
other instrument, other than this Agreement, the Spread Account
Agreement, the Sale and Servicing Agreement and the Indenture, or violate
any law, order, rule or regulation applicable to Seller of any court or
of any federal or state regulatory body, administrative
agency or other governmental instrumentality having jurisdiction
over Seller or any of its properties.

     (g) No Proceedings. There are no proceedings or investigations
pending or, to Seller’s knowledge, threatened against Seller, before any
court, regulatory body, administrative agency or other tribunal or
governmental instrumentality having jurisdiction over Seller or its
properties (i) asserting the invalidity of this Agreement or any of the
Related Documents, (ii) seeking to prevent the issuance of the Notes or
the consummation of any of the transactions contemplated by this
Agreement or any of the Related Documents, (iii) seeking any
determination or ruling that might materially and adversely affect the
performance by Seller of its obligations under, or the validity or

5

 

enforceability of, this Agreement or any of the Related Documents or (iv)
seeking to affect adversely the federal income tax or other federal,
state or local tax attributes of, or seeking to impose any excise,
franchise, transfer or similar tax upon, the transfer and acquisition of
the Receivables and the Other Conveyed Property hereunder or under the
Sale and Servicing Agreement.

     (h) True Sale. The Receivables are being transferred with the
intention of removing them from Seller’s estate pursuant to Section 541
of the Bankruptcy Code, as the same may be amended from time to time.

     (i) Chief Executive Office. The chief executive office of Seller is
located at 801 Cherry Street, Suite 3900, Fort Worth, Texas 76102.

          SECTION 3.2 Representations and Warranties of Purchaser. Purchaser makes the
following representations and warranties, on which Seller relies in selling,
assigning, transferring and conveying the Receivables and the Other Conveyed
Property to Purchaser hereunder. Such representations are made as of the
execution and delivery of this Agreement, but shall survive the sale, transfer
and assignment of the Receivables and the Other Conveyed Property hereunder and
the sale, transfer and assignment thereof by Purchaser to the Issuer under the
Sale and Servicing Agreement.

     (a) Organization and Good Standing. Purchaser has been duly
organized and is validly existing and in good standing as a statutory
trust under the laws of the State of Delaware, with the power and
authority to own its properties and to conduct its business as such
properties are currently owned and such business is currently conducted,
and had at all relevant times, and has, full power, authority and legal
right to acquire and own the Receivables and the Other Conveyed Property,
and to transfer the Receivables and the Other Conveyed Property to the
Issuer pursuant to the Sale and Servicing Agreement.

     (b) Due Qualification. Purchaser is duly qualified to do business,
is in good standing, and has obtained all necessary licenses and
approvals in all jurisdictions where the failure to do so would
materially and adversely affect Purchaser’s ability to acquire the
Receivables or the Other Conveyed Property, and to transfer the
Receivables and the Other Conveyed Property to the Issuer pursuant to the
Sale and Servicing Agreement, or
the validity or enforceability of the Receivables and the Other
Conveyed Property or to perform Purchaser’s obligations hereunder and
under the Purchaser’s Related Documents.

     (c) Power and Authority. Purchaser has the power, authority and
legal right to execute and deliver this Agreement and to carry out the
terms hereof and to acquire the Receivables and the Other Conveyed
Property hereunder; and the execution, delivery and performance of this
Agreement and all of the documents required pursuant hereto have been
duly authorized by Purchaser by all necessary action.

     (d) No Consent Required. Purchaser is not required to obtain the
consent of any other Person, or any consent, license, approval or
authorization or registration or declaration with, any governmental
authority, bureau or agency in connection with the

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execution, delivery or
performance of this Agreement and the Related Documents, except for such
as have been obtained, effected or made.

     (e) Binding Obligation. This Agreement constitutes a legal, valid
and binding obligation of Purchaser, enforceable against Purchaser in
accordance with its terms, subject, as to enforceability, to applicable
bankruptcy, insolvency, reorganization, conservatorship, receivership,
liquidation and other similar laws and to general equitable principles.

     (f) No Violation. The execution, delivery and performance by
Purchaser of this Agreement, the consummation of the transactions
contemplated by this Agreement and the Related Documents and the
fulfillment of the terms of this Agreement and the Related Documents do
not and will not conflict with, result in any breach of any of the terms
and provisions of, or constitute (with or without notice or lapse of
time) a default under, the trust agreement of Purchaser, or conflict with
or breach any of the terms or provisions of, or constitute (with or
without notice or lapse of time) a default under, any indenture,
agreement, mortgage, deed of trust or other instrument to which Purchaser
is a party or by which Purchaser is bound or to which any of its
properties are subject, or result in the creation or imposition of any
Lien upon any of its properties pursuant to the terms of any such
indenture, agreement, mortgage, deed of trust or other instrument (other
than the Sale and Servicing Agreement and the Spread Account Agreement),
or violate any law, order, rule or regulation, applicable to Purchaser or
its properties, of any federal or state regulatory body, any court,
administrative agency, or other governmental instrumentality having
jurisdiction over Purchaser or any of its properties.

     (g) No Proceedings. There are no proceedings or investigations
pending, or, to the knowledge of Purchaser, threatened against Purchaser,
before any court, regulatory body, administrative agency, or other
tribunal or governmental instrumentality having jurisdiction over
Purchaser or its properties: (i) asserting the invalidity of this
Agreement or any of the Related Documents, (ii) seeking to prevent the
consummation of any of the transactions contemplated by this Agreement or
any of the Related Documents, (iii) seeking any determination or ruling
that might materially and adversely affect the performance by Purchaser
of its obligations under, or the validity or enforceability of, this
Agreement or any of the Related Documents or (iv) that may adversely
affect the federal or state income tax attributes of, or seeking to
impose any excise, franchise,
transfer or similar tax upon, the transfer and acquisition of the
Receivables and the Other Conveyed Property hereunder or the transfer of
the Receivables and the Other Conveyed Property to the Issuer pursuant to
the Sale and Servicing Agreement.

          In the event of any breach of a representation and warranty made by
Purchaser hereunder, Seller covenants and agrees that it will not take any
action to pursue any remedy that it may have hereunder, in law, in equity or
otherwise, until a year and a day have passed since the date on which all
Notes, Certificates, pass-through certificates or other similar securities
issued by Purchaser, or a trust or similar vehicle formed by Purchaser, have
been paid in full. Seller and Purchaser agree that damages will not be an
adequate remedy for such breach and that this covenant may be specifically
enforced by Purchaser, Issuer or by the Trustee on behalf of the Noteholders
and Owner Trustee on behalf of the Certificateholder.

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ARTICLE IV.

COVENANTS OF SELLER

          SECTION 4.1 Protection of Title of Purchaser.

     (a) At or prior to the Closing Date, Seller shall have filed or
caused to be filed a UCC-1 financing statement, naming Seller as seller
or debtor, naming Purchaser as purchaser or secured party and describing
the Receivables and the Other Conveyed Property being sold by it to
Purchaser as collateral, with the office of the Secretary of State of the
State of Delaware and in such other locations as Purchaser shall have
required. From time to time thereafter, Seller shall execute and file
such financing statements and cause to be executed and filed such
continuation statements, all in such manner and in such places as may be
required by law fully to preserve, maintain and protect the interest of
Purchaser under this Agreement, of the Issuer under the Sale and
Servicing Agreement and of the Trust Collateral Agent under the Indenture
in the Receivables and the Other Conveyed Property and in the proceeds
thereof. Seller shall deliver (or cause to be delivered) to Purchaser,
the Trust Collateral Agent and the Insurer file-stamped copies of, or
filing receipts for, any document filed as provided above, as soon as
available following such filing. In the event that Seller fails to
perform its obligations under this subsection, Purchaser, Issuer or the
Trust Collateral Agent may do so, at the expense of such Seller. In
furtherance of the foregoing, the Seller hereby authorizes the Purchaser,
the Issuer or the Trust Collateral Agent to file a record or records (as
defined in the applicable UCC), including, without limitation, financing
statements, in all jurisdictions and with all filing offices as each may
determine, in its sole discretion, are necessary or advisable to perfect
the security interest granted to the Purchaser pursuant to Section 6.9 of
this Agreement. Such financing statements may describe the collateral in
the same manner as described herein or may contain an indication or
description of collateral that describes such property in any other
manner as such party may determine, in its sole discretion, is necessary,
advisable or prudent to ensure the perfection of the security interest in
the collateral granted to the Purchaser herein.

     (b) Seller shall not change its name, identity, state of
incorporation or corporate structure in any manner that would, could or
might make any financing statement or continuation statement filed by
Seller (or by Purchaser, Issuer or the Trust Collateral Agent on behalf
of Seller) in accordance with paragraph (a) above seriously misleading
within the meaning of §9-506 of the applicable UCC, unless they shall
have given Purchaser, Issuer, the Insurer and the Trust Collateral Agent
at least 60 days’ prior written notice thereof, and shall promptly file
appropriate amendments to all previously filed financing statements and
continuation statements.

     (c) Seller shall give Purchaser, the Issuer, the Insurer (so long as
an Insurer Default shall not have occurred and be continuing) and the
Trust Collateral Agent at least 60 days’ prior written notice of any
relocation that would result in a change of location of the debtor within
the meaning of Section 9-307 of the applicable UCC. Seller shall at all
times maintain (i) each office from which it services Receivables within
the United States

8

 

of America or Canada and (ii) its principal executive
office within the United States of America.

     (d) Prior to the Closing Date, Seller has maintained accounts and
records as to each Receivable accurately and in sufficient detail to
permit (i) the reader thereof to know at any time as of or prior to the
Closing Date, the status of such Receivable, including payments and
recoveries made and payments owing (and the nature of each) and (ii)
reconciliation between payments or recoveries on (or with respect to)
each Receivable and the Principal Balance as of the Closing Date. Seller
shall maintain its computer systems so that, from and after the time of
sale under this Agreement of the Receivables to Purchaser, and the
conveyance of the Receivables by Purchaser to the Issuer, Seller’s master
computer records (including archives) that shall refer to a Receivable
indicate clearly that such Receivable has been sold to Purchaser and has
been conveyed by Purchaser to the Issuer. Indication of the Issuer’s
ownership of a Receivable shall be deleted from or modified on Seller’s
computer systems when, and only when, the Receivable shall become a
Purchased Receivable or a Sold Receivable or shall have been paid in full
or sold pursuant to the terms of the Sale and Servicing Agreement.

     (e) If at any time Seller shall propose to sell, grant a security
interest in, or otherwise transfer any interest in any motor vehicle
receivables to any prospective purchaser, lender or other transferee,
Seller shall give to such prospective purchaser, lender, or other
transferee computer tapes, records, or print-outs (including any restored
from archives) that, if they shall refer in any manner whatsoever to any
Receivable (other than a Purchased Receivable or a Sold Receivable),
shall indicate clearly that such Receivable has been sold to Purchaser,
sold by Purchaser to Issuer, and is owned by the Issuer.

          SECTION 4.2 Other Liens or Interests. Except for the conveyances hereunder,
Seller will not sell, pledge, assign or transfer to any other Person, or grant,
create, incur, assume or suffer to exist any Lien on the Receivables or the
Other Conveyed Property or any interest therein, and Seller shall defend the
right, title, and interest of Purchaser and the Issuer in and to the
Receivables and the Other Conveyed Property
against all claims of third parties claiming through or under Seller.

          SECTION 4.3 Costs and Expenses. Seller shall pay all reasonable costs and
disbursements in connection with the performance of its obligations hereunder
and under its Related Documents.

          SECTION 4.4 Indemnification.

     (a) Seller shall defend, indemnify and hold harmless Purchaser, the
Issuer, the Trust Collateral Agent, the Trustee, the Backup Servicer, the
Owner Trustee, the Noteholders and the Certificateholder from and against
any and all costs, expenses, losses, damages, claims, and liabilities,
arising out of or resulting from any breach of any of Seller’s
representations and warranties contained herein.

9

 

     (b) Seller shall defend, indemnify and hold harmless Purchaser, the
Issuer, the Trust Collateral Agent, the Trustee, the Backup Servicer, the
Owner Trustee, the Noteholders and the Certificateholder from and against
any and all costs, expenses, losses, damages, claims, and liabilities,
arising out of or resulting from the use, ownership or operation by
Seller or any affiliate thereof of a Financed Vehicle.

     (c) Seller shall defend, indemnify and hold harmless Purchaser, the
Issuer, the Trust Collateral Agent, the Trustee, the Backup Servicer, the
Owner Trustee, the Noteholders and the Certificateholder from and against
any and all costs, expenses, losses, damages, claims and liabilities
arising out of or resulting from any action taken, or failed to be taken,
by it in respect of any portion of the Receivables other than in
accordance with this Agreement or the Sale and Servicing Agreement.

     (d) Seller agrees to pay, and shall defend, indemnify and hold
harmless Purchaser, the Issuer, the Trust Collateral Agent, the Trustee,
the Backup Servicer, the Owner Trustee, the Noteholders and the
Certificateholder from and against any taxes that may at any time be
asserted against Purchaser, the Issuer, the Trust Collateral Agent, the
Trustee, the Backup Servicer, the Owner Trustee, the Noteholders and the
Certificateholder with respect to the transactions contemplated in this
Agreement, including, without limitation, any sales, gross receipts,
general corporation, tangible or intangible personal property, privilege,
or license taxes (but not including any taxes asserted with respect to,
and as of the date of, the sale, transfer and assignment of the
Receivables and the Other Conveyed Property to Purchaser and by Purchaser
to the Issuer or the issuance and original sale of the Notes or issuance
of the Certificate, or asserted with respect to ownership of the
Receivables and Other Conveyed Property which shall be indemnified by
Seller pursuant to clause (e) below, or federal, state or other income
taxes, arising out of distributions on the Notes or the Certificate or
transfer taxes arising in connection with the transfer of the Notes or
the Certificate) and costs and expenses in defending against the same,
arising by reason of the acts to be performed by Seller under this
Agreement or imposed against such Persons.

     (e) Seller agrees to pay, and to indemnify, defend and hold harmless
Purchaser, the Issuer, the Trust Collateral Agent, the Trustee, the
Backup Servicer, the
Owner Trustee, the Noteholders and the Certificateholder from, any
taxes which may at any time be asserted against such Persons with respect
to, and as of the date of, the conveyance or ownership of the Receivables
or the Other Conveyed Property hereunder and the conveyance or ownership
of the Receivables under the Sale and Servicing Agreement or the issuance
and original sale of the Notes or the issuance of the Certificate,
including, without limitation, any sales, gross receipts, personal
property, tangible or intangible personal property, privilege or license
taxes (but not including any federal or other income taxes, including
franchise taxes, arising out of the transactions contemplated hereby or
transfer taxes arising in connection with the transfer of the Notes or
the Certificate) and costs and expenses in defending against the same,
arising by reason of the acts to be performed by Seller under this
Agreement or imposed against such Persons.

10

 

     (f) Seller shall defend, indemnify, and hold harmless Purchaser, the
Issuer, the Trust Collateral Agent, the Trustee, the Backup Servicer, the
Owner Trustee, the Noteholders and the Certificateholder from and against
any and all costs, expenses, losses, claims, damages, and liabilities to
the extent that such cost, expense, loss, claim, damage, or liability
arose out of, or was imposed upon Purchaser, the Issuer, the Trust
Collateral Agent, the Trustee, the Backup Servicer, the Owner Trustee,
the Noteholders or the Certificateholder through the negligence, willful
misfeasance, or bad faith of Seller in the performance of its duties
under this Agreement or by reason of reckless disregard of Seller’s
obligations and duties under this Agreement.

     (g) Seller shall indemnify, defend and hold harmless Purchaser, the
Issuer, the Trust Collateral Agent, the Trustee, the Backup Servicer, the
Owner Trustee, the Noteholders and the Certificateholder from and against
any loss, liability or expense incurred by reason of the violation by
Seller of federal or state securities laws in connection with the
registration or the sale of the Notes.

     (h) Seller shall indemnify, defend and hold harmless Purchaser, the
Issuer, the Trust Collateral Agent, the Trustee, the Backup Servicer, the
Owner Trustee, the Noteholders and the Certificateholder from and against
any loss, liability or expense imposed upon, or incurred by, Purchaser,
the Issuer, the Trust Collateral Agent, the Trustee, the Backup Servicer,
the Owner Trustee, the Noteholders or the Certificateholder as result of
the failure of any Receivable, or the sale of the related Financed
Vehicle, to comply with all requirements of applicable law.

     (i) Seller shall defend, indemnify, and hold harmless Purchaser from
and against all costs, expenses, losses, claims, damages, and liabilities
arising out of or incurred in connection with the acceptance or
performance of Seller’s trusts and duties as Servicer under the Sale and
Servicing Agreement, except to the extent that such cost, expense, loss,
claim, damage, or liability shall be due to the willful misfeasance, bad
faith, or negligence (except for errors in judgment) of Purchaser.

     (j) Seller shall indemnify the Owner Trustee and its officers,
directors, successors, assigns, agents and servants jointly and severally
with the Purchaser pursuant to Section 7.2 of the Trust Agreement.

          Indemnification under this Section 4.4 shall include reasonable fees and
expenses of counsel and expenses of litigation and shall survive payment of the
Notes and the Certificate. The indemnity obligations hereunder shall be in
addition to any obligation that Seller may otherwise have.

ARTICLE V.

REPURCHASES

          SECTION 5.1 Repurchase of Receivables Upon Breach of Warranty. Upon the
occurrence of a Repurchase Event, Seller shall, unless the breach which is the
subject of such Repurchase Event shall have been cured in all material
respects, repurchase the Receivable

11

 

relating thereto from the Issuer and,
simultaneously with the repurchase of the Receivable, Seller shall deposit the
Purchase Amount in full, without deduction or offset, to the Collection
Account, pursuant to Section 3.2 of the Sale and Servicing Agreement. It is
understood and agreed that, except as set forth in Section 6.1 hereof, the
obligation of Seller to repurchase any Receivable, as to which a breach
occurred and is continuing, shall, if such obligation is fulfilled, constitute
the sole remedy against Seller for such breach available to Purchaser, the
Issuer, the Insurer, the Backup Servicer, the Noteholders, the
Certificateholder, the Trust Collateral Agent on behalf of the Noteholders or
the Owner Trustee on behalf of the Certificateholder. The provisions of this
Section 5.1 are intended to grant the Issuer, the Insurer and the Trust
Collateral Agent a direct right against Seller to demand performance hereunder,
and in connection therewith, Seller waives any requirement of prior demand
against Purchaser with respect to such repurchase obligation. Any such
repurchase shall take place in the manner specified in Section 3.2 of the Sale
and Servicing Agreement. Notwithstanding any other provision of this Agreement
or the Sale and Servicing Agreement to the contrary, the obligation of Seller
under this Section shall not terminate upon a termination of Seller as Servicer
under the Sale and Servicing Agreement and shall be performed in accordance
with the terms hereof notwithstanding the failure of the Servicer or Purchaser
to perform any of their respective obligations with respect to such Receivable
under the Sale and Servicing Agreement.

          In addition to the foregoing and notwithstanding whether the related
Receivable shall have been purchased by Seller, Seller shall indemnify the
Issuer, the Trust Collateral Agent, the Trustee, the Backup Servicer, the Owner
Trustee, the Insurer, the Noteholders and the Certificateholder from and
against all costs, expenses, losses, damages, claims and liabilities, including
reasonable fees and expenses of counsel, which may be asserted against or
incurred by any of them as a result of third party claims arising out of the
events or facts giving rise to such Repurchase Events.

          SECTION 5.2 Reassignment of Purchased Receivables. Upon deposit in the
Collection Account of the Purchase Amount of any Receivable repurchased by
Seller under Section 5.1 hereof, Purchaser and the Issuer shall take such steps
as may be reasonably requested by Seller in order to assign to Seller all of
Purchaser’s and the Issuer’s right, title and interest in and to such
Receivable and all security and documents and all Other Conveyed Property
conveyed to Purchaser and the Issuer directly relating thereto, without
recourse, representation or warranty, except as to the absence of Liens created
by or arising as a result of actions of Purchaser or the Issuer. Such
assignment shall be a sale and assignment outright, and not for security. If,
following the reassignment of a Purchased Receivable, in any enforcement suit
or legal proceeding, it is held that Seller may not enforce any such Receivable
on the ground that it shall not be a real party in interest or a holder
entitled to enforce the Receivable, Purchaser and the Issuer shall, at the
expense of Seller, take such steps as Seller deems reasonably necessary to
enforce the Receivable, including bringing suit in Purchaser’s or in the
Issuer’s name.

          SECTION 5.3 Waivers. No failure or delay on the part of Purchaser, or the
Issuer as assignee of Purchaser, or the Trust Collateral Agent as assignee of
the Issuer, in exercising any power, right or remedy under this Agreement shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such power, right or remedy preclude any other or future exercise thereof or
the exercise of any other power, right or remedy.

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ARTICLE VI.

MISCELLANEOUS

          SECTION 6.1 Liability of Seller. Seller shall be liable in accordance herewith
only to the extent of the obligations in this Agreement specifically undertaken
by Seller and the representations and warranties of Seller.

          SECTION 6.2 Merger or Consolidation of Seller or Purchaser. Any corporation or
other entity (i) into which Seller or Purchaser may be merged or consolidated,
(ii) resulting from any merger or consolidation to which Seller or Purchaser is
a party or (iii) succeeding to the business of Seller or Purchaser, in the case
of Purchaser, which corporation has a certificate of incorporation containing
provisions relating to limitations on business and other matters substantively
identical to those contained in Purchaser’s trust agreement, provided that in
any of the foregoing cases such corporation shall execute an agreement of
assumption to perform every obligation of Seller or Purchaser, as the case may
be, under this Agreement and, whether or not such assumption agreement is
executed, shall be the successor to Seller or Purchaser, as the case may be,
hereunder (without relieving Seller or Purchaser of their responsibilities
hereunder, if it survives such merger or consolidation) without the execution
or filing of any document or any further action by any of the parties to this
Agreement. Notwithstanding the foregoing, so long as an Insurer Default shall
not have occurred and be continuing, Purchaser shall not merge or consolidate
with any other Person or permit any other Person to become the successor to
Purchaser’s business without the prior written consent of the Insurer. Seller
or Purchaser shall promptly inform the other party, the Issuer, the Trust
Collateral Agent, the Owner Trustee and, so long as an Insurer Default shall
not have occurred and be continuing, the Insurer of such merger, consolidation
or purchase and assumption. Notwithstanding the foregoing, as a condition to
the consummation of the transactions referred to in clauses (i), (ii) and (iii)
above, (x) immediately after giving effect to such transaction, no
representation or warranty made pursuant to Sections 3.1 and 3.2 of this
Agreement shall have been breached (for purposes hereof, such representations
and warranties shall speak as of the date of the consummation of such
transaction) and no event that, after notice or lapse of time, or both, would
become an event of default under the Insurance Agreement, shall have occurred
and be continuing, (y) Seller or Purchaser, as applicable, shall have delivered
written notice of such consolidation, merger or purchase and assumption to the
Rating Agencies prior to the consummation of such transaction and shall have
delivered to the Issuer, the Insurer and the Trust Collateral Agent an
Officer’s Certificate of the Seller or a certificate signed by or on behalf of
the Purchaser, as applicable, and an Opinion of Counsel each stating that such
consolidation, merger or succession and such agreement of assumption comply
with this Section 6.2 and that all conditions precedent, if any, provided for
in this Agreement relating to such transaction have been complied with, and (z)
Seller or Purchaser, as applicable, shall have delivered to the Issuer, the
Insurer and the Trust Collateral Agent an Opinion of Counsel, stating, in the
opinion of such counsel, either (A) all financing statements and continuation
statements and amendments thereto have been executed and filed that are
necessary to preserve and protect the interest of the Issuer and the Trust
Collateral Agent in the Receivables and reciting the details of the filings or
(B) no such action shall be necessary to preserve and protect such interest.

          SECTION 6.3 Limitation on Liability of Seller and Others. Seller and any
director, officer, employee or agent thereof may rely in good faith on the
advice of counsel or on

13

 

any document of any kind prima facie properly executed
and submitted by any Person respecting any matters arising under this
Agreement. Seller shall not be under any obligation to appear in, prosecute or
defend any legal action that is not incidental to its obligations under this
Agreement or its Related Documents and that in its opinion may involve it in
any expense or liability.

          SECTION 6.4 Seller May Own Notes or the Certificate. Subject to the provisions
of the Sale and Servicing Agreement, Seller and any Affiliate of Seller may in
their individual or any other capacity become the owner or pledgee of Notes or
the Certificate with the same rights as they would have if they were not Seller
or an Affiliate thereof.

          SECTION 6.5 Amendment.

     (a) This Agreement may be amended by Seller and Purchaser with the
prior written consent of the Insurer (so long as an Insurer Default shall
not have occurred and be continuing) but without the consent of the Trust
Collateral Agent, the Owner Trustee, the Certificateholder or any of the
Noteholders (i) to cure any ambiguity or (ii) to correct any provisions
in this Agreement; provided, however, that such action shall not, as
evidenced by an Opinion of Counsel delivered to the Issuer, the Owner
Trustee, the Insurer and the Trust Collateral Agent, adversely affect in
any material respect the interests of any Certificateholder or Noteholder
or, if an Insurer Default shall have occurred and be continuing, the
Insurer.

     (b) This Agreement may also be amended from time to time by Seller
and Purchaser, with the prior written consent of the Insurer (so long as
an Insurer Default shall not have occurred and be continuing) and with
the consent of the Trust Collateral
Agent and, if required, the Certificateholder and the Noteholders,
in accordance with the Sale and Servicing Agreement, 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 Certificateholder or Noteholders; provided, however, the
Seller provides the Trust Collateral Agent with an Opinion of Counsel,
(which may be provided by the Seller’s internal counsel) that no such
amendment shall increase or reduce in any manner the amount of, or
accelerate or delay the timing of, collections of payments on Receivables
or distributions that shall be required to be made on any Note or
Certificate; provided further that if an Insurer Default has occurred and
is continuing, such amendment shall not materially adversely affect the
interests of the Insurer.

     (c) Prior to the execution of any such amendment or consent, Seller
shall have furnished written notification of the substance of such
amendment or consent to each Rating Agency.

     (d) It shall not be necessary for the consent of Certificateholder
or Noteholders pursuant to this Section to approve the particular form of
any proposed amendment or consent, but it shall be sufficient if such
consent shall approve the substance thereof. The manner of obtaining
such consents and of evidencing the authorization of the execution
thereof by Certificateholder or Noteholders shall be subject to such
reasonable requirements as the Trust Collateral Agent may prescribe,
including the establishment of record dates. The consent of a Holder of
a Certificate or a Note

14

 

given pursuant to this Section or pursuant to any
other provision of this Agreement shall be conclusive and binding on such
Holder and on all future Holders of such Certificate or Note and of any
Certificate or Note issued upon the transfer thereof or in exchange
thereof or in lieu thereof whether or not notation of such consent is
made upon the Certificate or Note.

          SECTION 6.6 Notices. All demands, notices and communications to Seller or
Purchaser hereunder shall be in writing, personally delivered, or sent by
telecopier (subsequently confirmed in writing), reputable overnight courier or
mailed by certified mail, return receipt requested, and shall be deemed to have
been given upon receipt (a) in the case of Seller, to AmeriCredit Financial
Services, Inc., 801 Cherry Street, Suite 3900, Fort Worth, Texas 76102,
Attention: Chief Financial Officer, or (b) in the case of Purchaser, to AFS
Funding Trust, c/o Deutsche Bank Trust Company Delaware, as Owner Trustee, E.A.
Delle Donne Corporate Center, Montgomery Building, 1011 Centre Road, Suite 200,
Wilmington Delaware, 19805-1266, Attention: Corporate Trust, with a copy to AFS
Funding Trust, c/o AmeriCredit Financial Services, Inc., as Administrator, 801
Cherry Street, Suite 3900, Fort Worth, Texas 76102, Attention: Chief Financial
Officer, or such other address as shall be designated by a party in a written
notice delivered to the other party or to the Issuer, Owner Trustee, the
Insurer or the Trust Collateral Agent, as applicable.

          SECTION 6.7 Merger and Integration. Except as specifically stated otherwise
herein, this Agreement and Related Documents set forth the entire understanding
of the parties relating to the subject matter hereof, and all prior
understandings, written or oral, are superseded by this Agreement and the
Related Documents. This Agreement may not be modified, amended, waived or
supplemented except as provided herein.

          SECTION 6.8 Severability of Provisions. If any one or more of the covenants,
provisions or terms of this Agreement shall be for any reason whatsoever held
invalid, then such covenants, provisions or terms shall be deemed severable
from the remaining covenants, provisions or terms of this Agreement and shall
in no way affect the validity or enforceability of the other provisions of this
Agreement.

          SECTION 6.9 Intention of the Parties. The execution and delivery of this
Agreement shall constitute an acknowledgment by Seller and Purchaser that they
intend that the assignment and transfer herein contemplated constitute a sale
and assignment outright, and not for security, of the Receivables and the Other
Conveyed Property, conveying good title thereto free and clear of any Liens,
from Seller to Purchaser, and that the Receivables and the Other Conveyed
Property shall not be a part of Seller’s estate in the event of the bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding, or other
proceeding under any federal or state bankruptcy or similar law, or the
occurrence of another similar event, of, or with respect to Seller. In the
event that such conveyance is determined to be made as security for a loan made
by Purchaser, the Issuer, the Noteholders or the Certificateholder to Seller,
the Seller hereby grants to Purchaser a security interest in all of Seller’s
right, title and interest in and to the Receivables, the Other Conveyed
Property and all other property conveyed to the Purchaser by the Seller
pursuant to Section 2.1 hereof, in each case, whether now owned or existing or
hereafter acquired or arising, and this Agreement shall constitute a security
agreement under applicable law.

15

 

          SECTION 6.10 Governing Law This Agreement shall be construed in accordance
with, and this Agreement and all matters arising out of or relating in any way
to this Agreement shall be governed by, the law of the State of New York,
without giving effect to its conflict of law provisions (other than Sections
5-1401 and 5-1402 of the New York General Obligation Law).

          SECTION 6.11 Counterparts For the purpose of facilitating the execution of
this Agreement and for other purposes, this Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall
be deemed to be an original, and all of which counterparts shall constitute but
one and the same instrument.

          SECTION 6.12 Conveyance of the Receivables and the Other Conveyed Property to
the Issuer. Seller acknowledges that Purchaser intends, pursuant to the Sale
and Servicing Agreement, to convey the Receivables and the Other Conveyed
Property, together with its rights under this Agreement, to the Issuer on the
date hereof. Seller acknowledges and consents to such
conveyance and pledge and waives any further notice thereof and covenants and
agrees that the representations and warranties of Seller contained in this
Agreement and the rights of Purchaser hereunder are intended to benefit the
Insurer, the Issuer, the Owner Trustee, the Trust Collateral Agent, the
Noteholders and the Certificateholder. In furtherance of the foregoing, Seller
covenants and agrees to perform its duties and obligations hereunder, in
accordance with the terms hereof for the benefit of the Insurer, the Issuer,
the Owner Trustee, the Trust Collateral Agent, the Noteholders and the
Certificateholder and that, notwithstanding anything to the contrary in this
Agreement, Seller shall be directly liable to the Issuer, the Owner Trustee,
the Trust Collateral Agent, the Noteholders and the Certificateholder
(notwithstanding any failure by the Servicer, the Backup Servicer or the
Purchaser to perform its respective duties and obligations hereunder or under
Related Documents) and that the Trust Collateral Agent may enforce the duties
and obligations of Seller under this Agreement against Seller for the benefit
of the Insurer, the Owner Trustee, the Trust Collateral Agent, the Noteholders
and the Certificateholder.

          SECTION 6.13 Nonpetition Covenant. Neither Purchaser nor Seller shall petition
or otherwise invoke the process of any court or government authority for the
purpose of commencing or sustaining a case against the Purchaser or the Issuer
under any federal or state bankruptcy, insolvency or similar law or appointing
a receiver, liquidator, assignee, trustee, custodian, sequestrator or other
similar official of the Purchaser or the Issuer or any substantial part of
their respective property, or ordering the winding up or liquidation of the
affairs of the Purchaser or the Issuer.

          SECTION 6.14 Benefits of Purchase Agreement. The Insurer and its successors
and assigns shall be a third-party beneficiary to the provisions of this
Purchase Agreement and shall be entitled to rely upon and directly enforce the
provisions of this Purchase Agreement so long as no Insurer Default shall have
occurred and be continuing.

[Remainder of page intentionally left blank]

16

 

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

	 	 	 	 	 
	 	 	AFS FUNDING TRUST, as Purchaser
	 	 	
By:
	 	AMERICREDIT FINANCIAL SERVICES, INC., 
as Administrator
	 	 	
By
	 	     /s/ Sheli Fitzgerald

Name: Sheli Fitzgerald

Title: Assistant Vice President
	 	 	AMERICREDIT FINANCIAL SERVICES, INC., as Seller
	 	 	
By
	 	     /s/ Susan B. Sheffield

Name: Susan B. Sheffield

Title: Senior Vice President

	 	 	 	 	 
	
Accepted:	 	 
	
JPMORGAN CHASE BANK,
as Trustee and Trust Collateral Agent	 	 
	By	 	
     /s/ Melissa Wilman

Name: Melissa Wilman

Title: Vice President	 	 

[Purchase Agreement]

 

 

SCHEDULE A

SCHEDULE OF RECEIVABLES

 

 

SCHEDULE B

REPRESENTATIONS AND WARRANTIES OF

AMERICREDIT FINANCIAL SERVICES, INC. (“AMERICREDIT”)

     1. Characteristics of Receivables. Each Receivable (A) was originated (i)
by AmeriCredit, (ii) by a Dealer and purchased by AmeriCredit from such Dealer
under an existing Dealer Agreement or pursuant to a Dealer Assignment with
AmeriCredit and was validly assigned by such Dealer to AmeriCredit pursuant to
a Dealer Assignment or (iii) by a Third-Party Lender and purchased by
AmeriCredit from such Third-Party Lender under an existing Auto Loan Purchase
and Sale Agreement or pursuant to a Third-Party Lender Assignment with
AmeriCredit and was validly assigned by such Third-Party Lender to AmeriCredit
pursuant to a Third-Party Lender Assignment (B) was originated by AmeriCredit,
such Dealer or such Third-Party Lender for the retail sale of a Financed
Vehicle in the ordinary course of AmeriCredit’s, the Dealer’s or the
Third-Party Lender’s business, in each case was originated in accordance with
AmeriCredit’s credit policies and was fully and properly executed by the
parties thereto, and AmeriCredit, each Dealer and each Third-Party Lender had
all necessary licenses and permits to originate Receivables in the state where
AmeriCredit, each such Dealer or each such Third-Party Lender was located, (C)
contains customary and enforceable provisions such as to render the rights and
remedies of the holder thereof adequate for realization against the collateral
security, (D) is a Receivable which provides for level monthly payments
(provided that the period in the first Collection Period and the payment in the
final Collection Period of the Receivable may be minimally different from the
normal period and level payment) which, if made when due, shall fully amortize
the Amount Financed over the original term and (E) has not been amended or
collections with respect to which waived, other than as evidenced in the
Receivable File or the Servicer’s electronic records relating thereto.

     2. No Fraud or Misrepresentation. Each Receivable was originated (i) by
AmeriCredit, (ii) by a Dealer and was sold by the Dealer to AmeriCredit, or
(iii) by a Third-Party Lender and was sold by the Third-Party Lender to
AmeriCredit, and was sold by AmeriCredit to AFS Funding Trust without any fraud
or misrepresentation on the part of such Dealer or Third-Party Lender in any
case.

     3. Compliance with Law. All requirements of applicable federal, state and
local laws, and regulations thereunder (including, without limitation, usury
laws, the Federal Truth-in-Lending Act, the Equal Credit Opportunity Act, the
Fair Credit Billing Act, the Fair Credit Reporting Act, the Fair Debt
Collection Practices Act, the Federal Trade Commission Act, the Moss-Magnuson
Warranty Act, the Federal Reserve Board’s Regulations “B” and “Z” (including
amendments to the Federal Reserve’s Official Staff Commentary to Regulation Z,
effective October 1, 1998, concerning negative equity loans), the
Servicemembers Civil Relief Act, each applicable state Motor Vehicle Retail
Installment Sales Act, and state adaptations of the National Consumer Act and
of the Uniform Consumer Credit Code and other consumer credit laws and equal
credit opportunity and disclosure laws) in respect of the Receivables and the
Financed Vehicles, have been complied with in all material respects, and each
Receivable and the sale of the Financed Vehicle evidenced by each Receivable
complied at the time it was originated or made and now complies in all material
respects with all applicable legal requirements.

 

 

     4. Origination. Each Receivable was originated in the United States.

     5. Binding Obligation. Each Receivable represents the genuine, legal,
valid and binding payment obligation of the Obligor thereon, enforceable by the
holder thereof in accordance with its terms, except (A) as enforceability may
be limited by bankruptcy, insolvency, reorganization or similar laws affecting
the enforcement of creditors’ rights generally and by equitable limitations on
the availability of specific remedies, regardless of whether such
enforceability is considered in a proceeding in equity or at law and (B) as
such Receivable may be modified by the application after the Cutoff Date of the
Servicemembers Civil Relief Act, as amended; and all parties to each Receivable
had full legal capacity to execute and deliver such Receivable and all other
documents related thereto and to grant the security interest purported to be
granted thereby.

     6. No Government Obligor. No Obligor is the United States of America or
any State or any agency, department, subdivision or instrumentality thereof.

     7. Obligor Bankruptcy. At the Cutoff Date no Obligor had been identified
on the records of AmeriCredit as being the subject of a current bankruptcy
proceeding.

     8. Schedule of Receivables. The information set forth in the Schedule of
Receivables has been produced from the Electronic Ledger and was true and
correct in all material respects as of the close of business on the Cutoff
Date.

     9. Marking Records. By the Closing Date, AmeriCredit will have caused the
portions of the Electronic Ledger relating to the Receivables to be clearly and
unambiguously marked to show that the Receivables have been sold to AFS Funding
Trust by AmeriCredit and resold by the AFS Funding Trust to the Trust in
accordance with the terms of the Sale and Servicing Agreement.

     10. Computer Tape. The Computer Tape made available by AmeriCredit to AFS
Funding Trust and to the Trust on the Closing Date was complete and accurate as
of the Cutoff Date and includes a description of the same Receivables that are
described in the Schedule of Receivables.

     11. Adverse Selection. No selection procedures adverse to the Noteholders
or the Insurer were utilized in selecting the Receivables from those
receivables owned by AmeriCredit which met the selection criteria contained in
the Sale and Servicing Agreement.

     12. Chattel Paper. The Receivables constitute (A) “tangible chattel
paper” within the meaning of the UCC as in effect in the States of Texas, New
York and Delaware and (B) each Receivable shall be maintained in its original
“tangible” form, unless the Controlling Party has consented in writing to such
chattel paper being maintained in another form or medium.

     13. One Original. There is only one original executed copy of each
Receivable.

     14. Receivable Files Complete. There exists a Receivable File pertaining
to each Receivable and such Receivable File contains (a) a fully executed
original of the Receivable, (b) the original executed credit application
therefor, or a paper or electronic copy thereof and (c) the

B-2

 

original Lien Certificate or application. Each of such documents which is
required to be signed by the Obligor has been signed by the Obligor in the
appropriate spaces. All blanks on any form have been properly filled in and
each form has otherwise been correctly prepared. The complete Receivable File
for each Receivable currently is in the possession of the Custodian.

     15. Receivables in Force. No Receivable has been satisfied, subordinated
or rescinded, and the Financed Vehicle securing each such Receivable has not
been released from the lien of the related Receivable in whole or in part. No
terms of any Receivable have been waived, altered or modified in any respect
since its origination, except by instruments or documents identified in the
Receivable File or the Servicer’s electronic records.

     16. Lawful Assignment. No Receivable was originated in, or is subject to
the laws of, any jurisdiction the laws of which would make unlawful, void or
voidable the sale, transfer and assignment of such Receivable under this
Agreement or pursuant to transfers of the Notes.

     17. Good Title. Immediately prior to the conveyance of the Receivables to
AFS Funding Trust pursuant to this Agreement, AmeriCredit was the sole owner
thereof and had good and indefeasible title thereto, free of any Lien and, upon
execution and delivery of this Agreement by AmeriCredit, AFS Funding Trust
shall have good and indefeasible title to and will be the sole owner of such
Receivables, free of any Lien. No Dealer or Third-Party Lender has a
participation in, or other right to receive, proceeds of any Receivable.
AmeriCredit has not taken any action to convey any right to any Person that
would result in such Person having a right to payments received under the
related Insurance Policies or the related Dealer Agreements, Auto Loan Purchase
and Sale Agreements, Dealer Assignments, or Third-Party Lender Assignments or
to payments due under such Receivables.

     18. Security Interest in Financed Vehicle. Each Receivable created or
shall create a valid, binding and enforceable first priority security interest
in favor of AmeriCredit in the Financed Vehicle. The Lien Certificate for each
Financed Vehicle show, or if a new or replacement Lien Certificate is being
applied for with respect to such Financed Vehicle the Lien Certificate will be
received within 180 days of the Closing Date and will show, AmeriCredit (or,
with respect to Lien Certificates provided by the State of Maine, the Issuer)
named as the original secured party under each Receivable as the holder of a
first priority security interest in such Financed Vehicle. With respect to
each Receivable for which the Lien Certificate has not yet been returned from
the Registrar of Titles, AmeriCredit has applied for or received written
evidence from the related Dealer or Third-Party Lender that such Lien
Certificate showing AmeriCredit or the Issuer, as applicable, as first
lienholder has been applied for and AmeriCredit’s security interest has been
validly assigned by AmeriCredit to AFS Funding Trust pursuant to this
Agreement. This Agreement creates a valid and continuing security interest (as
defined in the UCC) in the Receivables in favor of the Purchaser, which
security interest is prior to all other Liens, and is enforceable as such as
against creditors of and purchasers from the Seller. Immediately after the
sale, transfer and assignment thereof by AmeriCredit to AFS Funding Trust, each
Receivable will be secured by an enforceable and perfected first priority
security interest in the Financed Vehicle in favor of AFS Funding Trust as
secured party, which security interest is prior to all other Liens upon and
security interests in such Financed Vehicle which now exist or may hereafter
arise or be created (except, as to priority, for any lien for taxes, labor or
materials affecting a Financed Vehicle). As of the Cutoff Date there were no
Liens or

B-3

 

claims for taxes, work, labor or materials affecting a Financed Vehicle
which are or may be Liens prior or equal to the Liens of the related
Receivable.

     19. All Filings Made. All filings (including, without limitation, UCC
filings (including, without limitation, the filing by the Seller of all
appropriate financing statements in the proper filing office in the State of
Delaware under applicable law in order to perfect the security interest in the
Receivables granted to the Purchaser hereunder)) required to be made by any
Person and actions required to be taken or performed by any Person in any
jurisdiction to give the Trust and the Trust Collateral Agent a first priority
perfected lien on, or ownership interest in, the Receivables and the proceeds
thereof and the Other Conveyed Property have been made, taken or performed.

     20. No Impairment. AmeriCredit has not done anything to convey any right
to any Person that would result in such Person having a right to payments due
under the Receivables or otherwise to impair the rights of the Trust, the
Insurer, the Trustee, the Trust Collateral Agent and the Noteholders in any
Receivable or the proceeds thereof. Other than the security interest granted
to the Purchaser pursuant to this Agreement and except any other security
interests that have been fully released and discharged as of the Closing Date,
the Seller has not pledged, assigned, sold, granted a security interest in, or
otherwise conveyed any of the Receivables. The Seller has not authorized the
filing of and is not aware of any financing statements against the Seller that
include a description of collateral covering the Receivables other than any
financing statement relating to the security interest granted to the Purchaser
hereunder or that has been terminated. The Seller is not aware of any judgment
or tax lien filings against it.

     21. Receivable Not Assumable. No Receivable is assumable by another
Person in a manner which would release the Obligor thereof from such Obligor’s
obligations to AmeriCredit with respect to such Receivable.

     22. No Defenses. No Receivable is subject to any right of rescission,
setoff, counterclaim or defense and no such right has been asserted or
threatened with respect to any Receivable.

     23. No Default. There has been no default, breach, violation or event
permitting acceleration under the terms of any Receivable (other than payment
delinquencies of not more than 30 days) and no condition exists or event has
occurred and is continuing that with notice, the lapse of time or both would
constitute a default, breach, violation or event permitting acceleration under
the terms of any Receivable, and there has been no waiver of any of the
foregoing. As of the Cutoff Date no Financed Vehicle had been repossessed.

     24. Insurance. At the time of an origination of a Receivable by
AmeriCredit or a purchase of a Receivable by AmeriCredit from a Dealer or
Third-Party Lender, each Financed Vehicle is required to be covered by a
comprehensive and collision insurance policy (i) in an amount at least equal to
the lesser of (a) its maximum insurable value or (b) the principal amount due
from the Obligor under the related Receivable, (ii) naming AmeriCredit as loss
payee and (iii) insuring against loss and damage due to fire, theft,
transportation, collision and other risks generally covered by comprehensive
and collision coverage. Each Receivable requires the Obligor to maintain
physical loss and damage insurance, naming AmeriCredit and its successors

B-4

 

and assigns as additional insured parties, and each Receivable permits the
holder thereof to obtain physical loss and damage insurance at the expense of
the Obligor if the Obligor fails to do so. No Financed Vehicle is insured
under a policy of Force-Placed Insurance on the Cutoff Date.

     25. Past Due. At the Cutoff Date no Receivable was more than 30 days past
due.

     26. Remaining Principal Balance. At the Cutoff Date the Principal Balance
of each Receivable set forth in the Schedule of Receivables is true and
accurate in all material respects.

     27. Certain Characteristics of Receivables. (A) Each Receivable had a
remaining maturity, as of the Cutoff Date, of not more than 72 months; (B) each
Receivable had an original maturity, as of the Cutoff Date of not more than 72
months; (C) not more than 40% of Receivables (calculated by Aggregate Principal
Balance) shall have an original term to maturity of 72 months; (D) each
Receivable had a remaining Principal Balance as of the Cutoff Date of at least
$250 and not more than $80,000; (E) each Receivable has an Annual Percentage
Rate of at least 2% and not more than 33%; (F) the Receivables’ weighted
average annual percentage rate is not less than 16.25%; (G) not more than 35%
of the Obligors reside in Texas and California (based on the Obligor’s mailing
address as of the Cutoff Date); (H) no Receivable was more than 30 days past
due as of the Cutoff Date; and (I) no funds have been advanced by AmeriCredit,
any Dealer, any Third-Party Lender, or anyone acting on behalf of any of them
in order to cause any Receivable to qualify under clause (H) above.

     28. Perfection. The Servicer has taken all steps necessary to perfect its
security interest against the related Obligors in the property securing the
Receivables and will take all necessary steps on behalf of the Trust to
maintain the Trust’s perfection of the security interest created by each
Receivable in the related Financed Vehicle.

     29. Interest Calculation. Each Contract provides for the calculation of
interest payable thereunder under either the “simple interest” method, the
“Rule of 78’s” method or the “precomputed interest” method.

     30. Lockbox Account. Each Obligor has been, or will be, directed to make
all payments on their related Receivable to the Lockbox Account.

     31. Consumer Leases. No Receivable constitutes a “consumer lease” under
either (a) the UCC as in effect in the jurisdiction the law of which governs
the Receivable or (b) the Consumer Leasing Act, 15 USC 1667.

B-5

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