Document:

exv10w2

 

EXHIBIT 10.2

 

 

FORM OF

RECEIVABLES PURCHASE AGREEMENT

between

HYUNDAI MOTOR FINANCE COMPANY,

as Seller,

and

HYUNDAI ABS FUNDING CORPORATION,

as Depositor

Dated as of [__________], 200[__]

 

 

 

 

TABLE OF CONTENTS

ARTICLE I

Certain Definitions

ARTICLE II

Conveyance of Receivables

	 	 	 	 	 
	Section 2.01. Conveyance of Receivables
	 	 	2	 
	Section 2.02. The Closing
	 	 	4	 

ARTICLE III

Representations and Warranties

	 	 	 	 	 
	Section 3.01. Representations and Warranties of Depositor
	 	 	4	 
	Section 3.02. Representations and Warranties of Seller
	 	 	4	 

ARTICLE IV

Conditions

	 	 	 	 	 
	Section 4.01. Conditions to Obligation of the Depositor
	 	 	14	 
	Section 4.02. Conditions to Obligation of the Seller
	 	 	14	 

ARTICLE V

Covenants of the Seller

	 	 	 	 	 
	Section 5.01. Protection of Right, Title and Interest
	 	 	15	 
	Section 5.02. Other Liens or Interests
	 	 	15	 
	Section 5.03. Costs and Expenses
	 	 	15	 
	Section 5.04. Hold Harmless
	 	 	15	 

ARTICLE VI

Indemnification

	 	 	 	 	 
	Section 6.01. Indemnification
	 	 	16	 

ARTICLE VII

Miscellaneous Provisions

	 	 	 	 	 
	Section 7.01. Obligations of Seller
	 	 	16	 
	Section 7.02. Repurchase Events
	 	 	16	 
	Section 7.03. Depositor Assignment of Repurchased Receivables
	 	 	17	 
	Section 7.04. Transfer to the Issuer
	 	 	17	 
	Section 7.05. Amendment
	 	 	17	 

 

 

	 	 	 	 	 	 	 
	Section 7.06. Waivers
	 	 	18	 
	Section 7.07. Notices
	 	 	18	 
	Section 7.08. Costs and Expenses
	 	 	18	 
	Section 7.09. Representations of the Seller and the Depositor
	 	 	18	 
	Section 7.10. Confidential Information
	 	 	18	 
	Section 7.11. Headings and Cross-References
	 	 	18	 
	Section 7.12. GOVERNING LAW
	 	 	18	 
	Section 7.13. Counterparts
	 	 	19	 
	Section 7.14. Third Party Beneficiary
	 	 	19	 
	Section 7.15. No Proceedings
	 	 	19	 
	Section 7.16. Nonpetition Covenant
	 	 	19	 
	 
	 	 	 	 	 	 
	EXHIBIT A
	 	Subordinated Promissory Note	 	 	A-1	 
	SCHEDULE I
	 	Schedule of Receivables	 	 	I-1	 
	SCHEDULE II
	 	Receivable File Schedule	 	II-1	 
	SCHEDULE III
	 	Reconveyance Documents	 	III-1	 
	SCHEDULE IV
	 	Conduit Documents	 	IV-1	 

ii

 

 

     RECEIVABLES PURCHASE AGREEMENT dated as of [                    ], 200[___] between HYUNDAI MOTOR FINANCE
COMPANY, a California corporation, as seller (the “Seller”), and HYUNDAI ABS FUNDING CORPORATION, a
Delaware corporation, as depositor (the “Depositor”).

RECITALS

     WHEREAS, in the regular course of its business, the Seller has purchased certain motor vehicle
retail installment sale contracts secured by new and used automobiles and light-duty trucks from
motor vehicle dealers;

     WHEREAS, the Seller and the Depositor wish to set forth the terms pursuant to which such
contracts are to be sold by the Seller to the Depositor; and

     WHEREAS, the Depositor intends, concurrently with its purchases from time to time hereunder,
to convey all of its right, title and interest in and to $[                    ] of such contracts to
Hyundai Auto Receivables Trust 200[___] (the “Issuer”) pursuant to a Sale and Servicing Agreement
dated as of [                    ], 200[___] (the “Sale and Servicing Agreement”), by and among the Issuer,
the Depositor, the Seller, Hyundai Motor Finance Company, as Servicer and [                                        ],
as Indenture Trustee, and the Issuer intends to pledge all of its right, title and interest in such
contracts to the Indenture Trustee pursuant to the Indenture.

     NOW, THEREFORE, in consideration of the foregoing, other good and valuable consideration and
the mutual terms and covenants contained herein, the parties hereto agree as follows:

ARTICLE I

Certain Definitions

     Terms not defined in this Agreement shall have the meanings assigned thereto in the Sale and
Servicing Agreement or the Indenture. As used in this Agreement, the following terms shall, unless
the context otherwise requires, have the following meanings (such meanings to be equally applicable
to the singular and plural forms of the terms defined):

     “Agreement” shall mean this Receivables Purchase Agreement, as the same may be amended and
supplemented from time to time.

     “Closing Date” shall mean [                    ], 200[___].

     [“Conduit Documents” shall mean the documents listed on Schedule IV hereto.]

     “Depositor” shall mean Hyundai ABS Funding Corporation, a Delaware corporation, its successors
and assigns.

     “Indemnified Losses” shall have the meaning specified in Section 6.01.

     “Indemnified Party” shall have the meaning specified in Section 6.01.

 

 

     “Lien Certificate” means with respect to a Financed Vehicle, an original certificate of title,
certificate of lien or other notification issued by the Registrar of Titles of the applicable state
to a secured party which indicates that the lien of the secured party on the Financed Vehicle is
recorded on the original certificate of title. In any jurisdiction in which the original
certificate of title is required to be given to the Obligor, the term “Lien Certificate” shall mean
only a certificate or notification issued to a secured party.

     “Purchase Price” means, with respect to any Receivable, an amount equal to the Principal
Balance of such Receivable as of the Cutoff Date.

     “Receivable” shall mean any Contract listed on Schedule I hereto (which Schedule may be in the
form of microfiche).

     “Reconveyance Documents” shall mean the documents listed on Schedule III hereto.

     “Registrar of Titles” means with respect to any state, the governmental agency or body
responsible for the registration of, and the issuance of certificates of title relating to, motor
vehicles and liens thereon.

     “Repurchase Event” shall have the meaning specified in Section 7.02.

     “Sale and Servicing Agreement” shall have the meaning set forth in the recitals.

     “Schedule of Receivables” shall mean the list of Receivables annexed hereto as Schedule I.

     “Seller” shall mean Hyundai Motor Finance Company, a California corporation, its successors
and assigns.

     “Subordinated Promissory Note” shall have the meaning specified in Section 2.01(a).

     “Transfer Date” shall mean the Closing Date.

     “Transfer Tax” shall have the meaning specified in Section 3.02(b)(xlvi).

     “Underwriting Agreement” means the Underwriting Agreement dated [                    ], 200[___],
relating to Hyundai Auto Receivables Trust 200[___] among the Depositor, HMFC and [                    ], on
behalf of itself and as Representative of the Several Underwriters.

ARTICLE II

Conveyance of Receivables

     Section 2.01. Conveyance of Receivables.

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     (a) In consideration of the Depositor’s delivery to or upon the order of the Seller on the
Closing Date of $[                    ] and a subordinated revolving credit note of the Depositor in the
form of Exhibit A attached hereto (the “Subordinated Promissory Note”) in a principal amount equal
to $[                    ], the Seller does hereby sell, transfer, assign, set over and otherwise convey to
the Depositor, without recourse (subject to the obligations of the Seller herein) all right, title,
and interest of the Seller in and to:

     (i) the Receivables and all moneys received thereon on or after the
Cutoff Date;

     (ii) the security interests in the Financed Vehicles and any
accessions thereto granted by Obligors pursuant to the Receivables and any
other interest of the Seller in such Financed Vehicles;

     (iii) any Liquidation Proceeds and any other proceeds with respect to
the Receivables from claims on any physical damage, credit life or
disability insurance policies covering Financed Vehicles or Obligors,
including any vendor’s single interest or other collateral protection
insurance policy;

     (iv) any property that shall have secured any Receivable and that
shall have been acquired by or on behalf of the Seller;

     (v) all documents and other items contained in the Receivable Files;

     (vi) all proceeds from any Receivable repurchased by a Dealer pursuant
to a Dealer Agreement; and

     (vii) the proceeds of any and all of the foregoing.

The Depositor shall make payment in respect of the Purchase Price upon demand by the Seller.

     (b) The outstanding principal amount of the Subordinated Promissory Note shall bear interest
at a rate per annum equal to the prime rate as published on such day (or, if not then published, on
the most recently preceding day) in The Wall Street Journal as the “Prime Rate.” Changes in the
rate payable hereunder shall be effective on each day on which a change in the Prime Rate is
published. On each Payment Date, the Depositor shall repay the accrued interest on, and principal
amount of, the Subordinated Promissory Note as and to the extent of any amounts received by the
Depositor from proceeds of collections of Receivables, subject, however, to the prior right of the
Issuer to receive payments out of the collections pursuant to this Agreement.

     (c) [Reserved]

     (d) The Seller and the Depositor intend that the transfer of assets by the Seller to the
Depositor pursuant to this Agreement be a sale of the ownership interest in such assets to the
Depositor, rather than the mere granting of a security interest to secure a borrowing. In the
event, however, that such transfer is deemed not to be a sale but to be of a mere security interest
to secure a borrowing or such transfer is otherwise not effective to sell the Receivables and other

3

 

property described in Section 2.01(a) hereof, the Seller shall be deemed to have hereby granted to
the Depositor a perfected first priority security interest in all such assets, and this Agreement
shall constitute a security agreement under applicable law. Pursuant to the Sale and Servicing
Agreement and Section 7.04 hereof, the Depositor may sell, transfer and assign to the Issuer (i)
all or any portion of the assets assigned to the Depositor hereunder, (ii) all or any portion of
the Depositor’s rights against the Seller under this Agreement and (iii) all proceeds thereof. Such
assignment may be made by the Depositor with or without an assignment by the Depositor of its
rights under this Agreement, and without further notice to or acknowledgement from the Seller. The
Seller waives, to the extent permitted under applicable law, all claims, causes of action and
remedies, whether legal or equitable (including any right of setoff), against the Depositor or any
assignee of the Depositor relating to such action by the Depositor in connection with the
transactions contemplated by the Sale and Servicing Agreement.

     Section 2.02. The Closing. The sale and purchase of the Receivables shall take place at a
closing at the offices of [                    ], [Address], on the Closing Date, simultaneously with the
closing under (a) the Sale and Servicing Agreement, (b) the Indenture and (c) the Trust Agreement.

ARTICLE III

Representations and Warranties

     Section 3.01. Representations and Warranties of Depositor. The Depositor hereby represents and
warrants as follows to the Seller and the Indenture Trustee as of the date hereof and the Transfer
Date:

     (a) Organization and Good Standing. The Depositor has been duly
organized and is validly existing as a corporation in good standing under
the laws of the State of Delaware, with the corporate power and authority
to own its properties and to conduct its business as such properties are
currently owned and such business is presently conducted, including the
corporate power, authority and legal right to acquire and sell the
Receivables.

     (b) Power and Authority. The Depositor has the power and authority to
execute and deliver this Agreement and to carry out its terms; and the
execution, delivery and performance of this Agreement have been duly
authorized by the Depositor by all necessary corporate action.

     (c) No Violation. The consummation of the transactions contemplated by
this Agreement and the fulfillment of the terms hereof do 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 or both) a default
under, the charter or bylaws of the Depositor, or any indenture, agreement
or other instrument to which the Depositor is a party or by which it is
bound.

     Section 3.02. Representations and Warranties of Seller.

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     (a) The Seller hereby represents and warrants as follows to the Depositor and the Indenture
Trustee as of the date hereof and as of the Transfer Date:

     (i) Organization and Good Standing. The Seller has been duly organized
and is validly existing as a corporation in good standing under the laws of
the State of California, with the corporate power and authority to own its
properties and to conduct its business as such properties are currently
owned and such business is presently conducted.

     (ii) Due Qualification. The 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 property or the conduct of its business shall require such
qualifications.

     (iii) Power and Authority. The Seller has the power and authority to
execute and deliver this Agreement and the other Basic Documents to which
it is a party and to carry out their respective terms; the Seller had at
all relevant times, and has, full power, authority and legal right to sell,
transfer and assign the property sold, transferred and assigned to the
Depositor hereby and has duly authorized such sale, transfer and assignment
to the Depositor by all necessary corporate action; and the execution,
delivery and performance of this Agreement and the other Basic Documents to
which the Seller is a party have been duly authorized by the Seller by all
necessary corporate action.

     (iv) No Violation. The consummation of the transactions contemplated
by this Agreement and the other Basic Documents to which the Seller is a
party and the fulfillment of their respective terms do 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 or both) a default under, the
articles of incorporation or bylaws of the Seller, or any indenture,
agreement or other instrument to which the 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 or
other instrument (other than this Agreement), or violate any law or, to the
best of the Seller’s knowledge, any order, rule or regulation applicable to
the Seller of any court or of any federal or state regulatory body,
administrative agency or other governmental instrumentality having
jurisdiction over the Seller or its properties.

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

5

 

     (vi) Valid Sale, Binding Obligation. This Agreement and the other
Basic Documents to which the Seller is a party, when duly executed and
delivered by the other parties hereto and thereto, shall constitute legal,
valid and binding obligations of the Seller, enforceable against the Seller
in accordance with their respective terms, except as the enforceability
thereof may be limited by bankruptcy, insolvency, reorganization and
similar laws now or hereafter in effect relating to or affecting creditors’
rights generally and to general principles of equity (whether applied in a
proceeding at law or in equity).

     (vii) Chief Executive Office. The chief executive office of the Seller
is located at 10550 Talbert Avenue, Fountain Valley, California 92708.

     (viii) No Consents. The Seller is not required to obtain the consent
of any other party or any consent, license, approval, registration,
authorization, or declaration of or with any governmental authority, bureau
or agency in connection with the execution, delivery, performance,
validity, or enforceability of this Agreement or any other Basic Document
to which it is a party that has not already been obtained.

     (ix) Seller Information. No certificate of an officer, statement or
document furnished in writing or report delivered pursuant to the terms
hereof by the Seller contains any untrue statement of a material fact or
omits to state any material fact necessary to make the certificate,
statement, document or report not misleading.

     (x) Ordinary Course. The transactions contemplated by this Agreement
and the other Basic Documents to which the Seller is a party are in the
ordinary course of the Seller’s business.

     (xi) Solvency. The Seller is not insolvent, nor will the Seller be
made insolvent by the transfer of the Receivables, nor does the Seller
contemplate any pending insolvency.

     (xii) Legal Compliance. The Seller is not in violation of, and the
execution and delivery of this Agreement and the other Basic Documents to
which the Seller is a party by it and its performance and compliance with
the terms of this Agreement and the other Basic Documents to which the
Seller is a party will not constitute a violation with respect to, any
order or decree of any court or any order or regulation of any federal,
state, municipal or governmental agency having jurisdiction, which
violation would materially and adversely affect the Seller’s condition
(financial or otherwise) or operations or any of the Seller’s properties or
materially and adversely affect the performance of any of its duties under
the Basic Documents.

     (xiii) Creditors. The Seller represents and warrants that it did not
sell the Receivables to the Depositor with any intent to hinder, delay or
defraud any of its creditors.

     (xiv) No Notice. The Seller represents and warrants that it acquired
title to the Receivables in good faith, without notice of any adverse
claim.

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     (xv) Bulk Transfer. The Seller represents and warrants that the
transfer, assignment and conveyance of the Receivables by the Seller
pursuant to this Agreement are not subject to the bulk transfer laws or any
similar statutory provisions in effect in any applicable jurisdiction.

     (b) The Seller makes the following representations and warranties with respect to the
Receivables, on which the Depositor relies in accepting the Receivables and in transferring the
Receivables to the Issuer under the Sale and Servicing Agreement, and on which the Issuer relies in
pledging the same to the Indenture Trustee. Such representations and warranties speak as of the
execution and delivery of this Agreement as of the Closing Date, but shall survive the sale,
transfer and assignment of the Receivables to the Depositor, the subsequent sale, transfer and
assignment of the Receivables by the Depositor to the Issuer pursuant to the Sale and Servicing
Agreement and the pledge of the Receivables by the Issuer to the Indenture Trustee pursuant to the
Indenture.

     (i) Characteristics of Receivables. Each Receivable (A) was originated
in the United States of America by a Dealer located in the United States of
America for the retail sale of a Financed Vehicle in the ordinary course of
such Dealer’s business and satisfied the Seller’s Credit and Collection
Policy as of the date of origination of the related Receivable, is payable
in United States dollars, has been fully and properly executed by the
parties thereto, has been purchased by the Seller from such Dealer under an
existing Dealer Agreement and has been validly assigned by such Dealer to
the Seller, (B) has created or shall create a valid, subsisting and
enforceable first priority security interest in favor of the Seller in the
Financed Vehicle, which security interest is assignable by the Seller to
the Depositor, by the Depositor to the Issuer, and by the Issuer to the
Indenture Trustee, (C) contains customary and enforceable provisions such
that the rights and remedies of the holder thereof are adequate for
realization against the collateral of the benefits of the security, (D)
provides for fixed level monthly payments (provided that the payment in the
last month of the term of the Receivable may be insignificantly different
from the level payments) that fully amortize the Amount Financed by
maturity and yield interest at the APR and (E) amortizes using the simple
interest method.

     (ii) Compliance with Law. Each Receivable and the sale of the related
Financed Vehicle complied at the time it was originated or made, and at the
time of execution of this Agreement complies, in all material respects with
all requirements of applicable federal, state and local laws, rulings and
regulations thereunder, including 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 Magnuson-Moss Warranty Act, the Federal
Reserve Board’s Regulations “B” and “Z”, the Servicemembers Civil Relief
Act, the Gramm-Leach-Bliley Act, 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; and each Dealer has
represented to the Seller that such Dealer had all necessary licenses and
permits to originate such Receivables.

     (iii) Binding Obligation. Each Receivable represents the genuine,
legal, valid and binding payment obligation of the Obligor thereon,
enforceable by the holder thereof

7

 

in accordance with its terms, except (A) as enforceability thereof 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 Transfer Date
of the Servicemembers Civil Relief Act.

     (iv) No Government Obligor. No Receivable is due from the United
States of America or any State or any agency, department, subdivision or
instrumentality thereof.

     (v) Obligor Bankruptcy. According to the records of the Seller, as of
the Cutoff Date, no Obligor is the subject of a bankruptcy proceeding.

     (vi) Schedule of Receivables. The information set forth in Schedule I
to this Agreement is true and correct in all material respects as of the
close of business on the Cutoff Date.

     (vii) Marking Records. By the Transfer Date, the Seller will have
caused its computer and accounting records relating to each Receivable to
be clearly and unambiguously marked to show that the Receivables have been
sold to the Depositor by the Seller and transferred and assigned by the
Depositor to the Issuer in accordance with the terms of the Sale and
Servicing Agreement and pledged by the Issuer to the Indenture Trustee in
accordance with the terms of the Indenture.

     (viii) Computer Tape. The computer tape regarding the Receivables made
available by the Seller to the Depositor is complete and accurate in all
respects as of the Transfer Date.

     (ix) No Adverse Selection. The Receivables sold to the Depositor by
the Seller were randomly selected from those motor vehicle installment
contracts in the Seller’s portfolio based upon the satisfaction of the
criteria set forth in this Agreement and no selection procedures believed
by the Seller to be adverse to the Noteholders or the Certificateholder
were utilized in selecting the Receivables.

     (x) Chattel Paper. Each Receivable constitutes chattel paper within
the meaning of the UCC as in effect in the state of origination.

     (xi) One Original. There is only one executed original of each
Receivable.

     (xii) Receivables in Force. No Receivable has been satisfied,
subordinated or rescinded, nor has any Financed Vehicle been released from
the Lien of the related Receivable in whole or in part. None of the terms
of any Receivable has been waived, altered or modified in any respect since
its origination, except by instruments or documents identified in the
related Receivable File. No Receivable has been modified as a result of the
application of the Servicemembers Civil Relief Act.

     (xiii) Lawful Assignment. No Receivable has been originated in, or is
subject to the laws of, any jurisdiction the laws of which would make
unlawful, void or voidable the

8

 

sale, transfer and assignment of such Receivable under this Agreement, the
Sale and Servicing Agreement or the pledge of such Receivable under the
Indenture.

     (xiv) Title. It is the intention of the Seller that the transfers and
assignments herein contemplated constitute sales of the Receivables from
the Seller to the Depositor and that the beneficial interest in and title
to the Receivables not be part of the debtor’s estate in the event of the
filing of a bankruptcy petition by or against the Seller under any
bankruptcy law. No Receivable, other than the Receivables identified in the
Reconveyance Documents, has been sold, transferred, assigned or pledged by
the Seller to any Person other than to the Depositor or pursuant to this
Agreement (or by the Depositor to any other Person other than to the Issuer
pursuant to the Sale and Servicing Agreement). Except with respect to the
Liens under the Conduit Documents (which such Liens shall be released in
accordance with provisions of the Reconveyance Documents), immediately
prior to the transfers and assignments herein contemplated, the Seller has
good and marketable title to each Receivable free and clear of all Liens,
and, immediately upon the transfer thereof, the Depositor shall have good
and marketable title to each Receivable, free and clear of all Liens and,
immediately upon the transfer thereof from the Depositor to the Issuer
pursuant to the Sale and Servicing Agreement, the Issuer shall have good
and marketable title to each Receivable, free and clear of all Liens and,
immediately upon the pledge thereof from the Issuer to the Indenture
Trustee pursuant to the Indenture, the Indenture Trustee shall have a first
priority perfected security interest in each Receivable.

     (xv) Security Interest in Financed Vehicle. Immediately prior to its
sale, assignment and transfer to the Depositor pursuant to this Agreement,
each Receivable shall be secured by a validly perfected first priority
security interest in the related Financed Vehicle in favor of the Seller as
secured party, or all necessary and appropriate actions have been commenced
that will result in the valid perfection of a first priority security
interest in such Financed Vehicle in favor of the Seller as secured party
within 120 days of the Closing Date, and the Seller further represents that
it will complete all such actions. The Lien Certificate for each Financed
Vehicle shows, or if a new or replacement Lien Certificate is being applied
for with respect to such Financed Vehicle such Lien Certificate shall be
received within 120 days of the Closing Date and shall show, the Seller
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, the Seller has received written evidence that
such Lien Certificate showing the Seller as first lienholder has been
applied for. Each Dealer’s ownership interest in any Receivable originated
by such Dealer has been validly assigned by the Dealer to the Seller. The
Seller’s ownership interest in the Receivables and security interest in the
Financed Vehicles has been validly assigned to the Depositor pursuant to
this Agreement. The Seller has the legal right to repossess or recover by
legal process in its name the Financed Vehicle.

     (xvi) All Filings Made. All filings (including UCC filings, except for
UCC releases required to be filed in accordance with the Reconveyance
Documents) required to be made in any jurisdiction to give the Issuer a
first perfected ownership interest in the

9

 

Receivables and the Indenture Trustee a first priority perfected security
interest in the Receivables have been made.

     (xvii) No Defenses. No Receivable is subject to any right of
rescission, setoff, counterclaim, dispute or defense, including the defense
of usury, whether arising out of transactions concerning the Receivable or
otherwise, and the operation of any terms of the Receivable or the exercise
by the Seller or the Obligor of any right under the Receivable will not
render the Receivable unenforceable in whole or in part, and no such right
of rescission, setoff, counterclaim, dispute or defense, including the
defense of usury, has been asserted with respect thereto.

     (xviii) 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.

     (xix) Insurance. The Seller, in accordance with its customary
procedures, has determined that the Obligor has obtained physical damage
insurance covering each Financed Vehicle and, under the terms of the
related Receivable, the Obligor is required to maintain such insurance and
to name the Seller as a loss payee.

     (xx) Final Scheduled Maturity Date. No Receivable has a final
scheduled payment date after [                    ], 200[___].

     (xxi) Certain Characteristics of the Receivables. As of the applicable
Cutoff Date, (A) each Receivable had an original maturity of not less than
12 or more than 72 months and (B) no Receivable was more than [___] days
past due as of the Cutoff Date.

     (xxii) No Foreign Obligor. All of the Receivables are due from
Obligors who are citizens, or legal resident aliens, of the United States
of America.

     (xxiii) No Extensions. The number or timing of scheduled payments has
not been changed on any Receivable on or before the Closing Date, as
applicable, except as reflected on the computer tape delivered in
connection with the sale of the Receivables.

     (xxiv) Scheduled Payments. Each Obligor has been instructed to make
all scheduled payments to the Post Office Boxes. To the best knowledge of
the Seller, each Obligor has paid the entire down payment called for by the
contract.

     (xxv) [Reserved]

     (xxvi) No Fleet Sales. No Receivable has been included in a “fleet”
sale (i.e., a sale to any single Obligor of more than five Financed
Vehicles).

     (xxvii) Receivable Files. There is no more than one original copy of
each of the documents or instruments constituting the Receivable Files, and
to the extent that an

10

 

original copy has been maintained, the Servicer has in its possession all
such original copies that constitute or evidence the Receivables. The
Receivable Files that constitute or evidence the Receivables do not have
any marks or notations indicating that they have been pledged, assigned or
otherwise conveyed by the Seller to any Person other than the Depositor[,
except for such Liens as have been released on or before the Closing Date].
All financing statements filed or to be filed against the Seller in favor
of the Depositor in connection herewith describing the Receivables contain
a statement to the following effect: “A purchase of or security interest in
any collateral described in this financing statement, except as provided in
the Receivables Purchase Agreement, will violate the rights of the
Depositor.”

     (xxviii) No Fraud or Misrepresentation. Each Receivable was originated
by a Dealer and was sold by the Dealer to the Seller, to the best of the
Seller’s knowledge, without fraud or misrepresentation on the part of such
Dealer in either case.

     (xxix) Receivables Not Assumable. No Receivable is assumable by
another person in a manner which would release the Obligor thereof from
such Obligor’s obligations to the Seller with respect to such Receivable.

     (xxx) No Impairment. The Seller has not done anything to convey any
right to any person that would result in such person having a right to
payments due under a Receivable or otherwise to impair the rights of the
Depositor in any Receivable or the proceeds thereof.

     (xxxi) Tax Liens. There is no Lien against any Financed Vehicle for
delinquent taxes.

     (xxxii) No Corporate Obligor. All of the Receivables are due from
Obligors who are natural persons.

     (xxxiii) No Liens. No Liens or claims have been filed for work, labor,
or materials relating to a Financed Vehicle that are prior to, or equal or
coordinate with, the security interest in the Financed Vehicle granted by
the related Receivable.

     (xxxiv) Servicing. Each Receivable has been serviced in conformity
with all applicable laws, rules and regulation and in conformity with the
Seller’s policies and procedures which are consistent with customary,
prudent industry standards.

     (xxxv) APR. No Receivable has an APR of less than [___]% and the
weighted average coupon on the pool of Receivables is at least [___]%.

     (xxxvi) Remaining Term. Each Receivable has a remaining term of at
least [_] months and no more than [___] months.

     (xxxvii) Original Term. The weighted average original term for the
Receivables is at least [___] months.

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     (xxxviii) Remaining Balance. Each Receivable has a remaining balance
of at least $[                    ] and not greater than $[                    ].

     (xxxix) New Vehicles. At least [                    ]% of the aggregate principal
balance of the Receivables is secured by Financed Vehicles which were new
at the date of origination.

     (xl) No Advances. No advances have been made to Obligors in order to
meet any representation and warranties herein set forth.

     (xli) No Repossessions. No Financed Vehicle has been repossessed on or
prior to the applicable Transfer Date.

     (xlii) No Omissions. There have been no material omissions or
misstatements in any document provided or statement made to the Depositor
concerning the Receivables by or on behalf of the Seller in connection with
the transactions contemplated by this Agreement.

     (xliii) No Proceedings Pending. As of the Cutoff Date, there are no
proceedings pending, or to the best of the Seller’s knowledge, threatened,
wherein the Obligor or any governmental agency has alleged that any
Receivable is illegal or unenforceable.

     (xliv) Dealer Agreements. Each Dealer from whom the Seller purchases
Receivables has entered into a Dealer Agreement with the Seller providing
for the sale of Receivables from time to time by such Dealer to the Seller.

     (xlv) Receivable Obligations. The Seller has duly fulfilled all
obligations to be fulfilled on its part under or in connection with the
origination, acquisition and assignment of the Receivables. To the best of
the Seller’s knowledge, no notice to or consent from any Obligor is
necessary to effect the acquisition of the Receivables by the Indenture
Trustee.

     (xlvi) Taxes. The sale, transfer, assignment and conveyance of the
Receivables by the Seller pursuant to this Agreement is not subject to and
will not result in any tax, fee or governmental charge payable by the
Seller, the Issuer or the Indenture Trustee to any federal, state or local
government (“Transfer Taxes”) other than Transfer Taxes which have or will
be paid by the Seller as due. In the event the Issuer or the Indenture
Trustee receives actual notice of any Transfer Taxes arising out of the
transfer, assignment and conveyance of the Receivables, on written demand
by the Issuer or the Indenture Trustee, or upon the Seller’s otherwise
being given notice thereof by the Issuer or the Indenture Trustee, the
Seller shall pay, and otherwise indemnify and hold the Issuer and the
Indenture Trustee harmless, on an after-tax basis, from and against any and
all such Transfer Taxes (it being understood that the Noteholders, the
Indenture Trustee and the Issuer shall have no obligation to pay such
Transfer Taxes).

     (xlvii) Computer Tape. The computer tape from which the selection of
the Receivables being acquired on the Closing Date was made available to
the accountants

12

 

that are providing a comfort letter to the Noteholders in connection with
the numerical information regarding the Receivables and the Notes.

     (xlviii) No Future Disbursement. At the time each Receivable was
acquired from the Dealer, the Amount Financed was fully disbursed. There is
no requirement for future advances of principal thereunder, and, other than
in connection with Dealer participations, all fees and expenses in
connection with the origination of such Receivable have been paid.

     (xlix) Physical Damage Insurance Policy. In connection with the
purchase of each Receivable, the Seller required the related Dealer to
furnish evidence that the related Financed Vehicle was covered by a
physical damage insurance policy (i) in an amount at least equal to the
lesser of (a) the actual cash value of the related Financed Vehicle or (b)
the unpaid principal balance owing on such Receivable, (ii) naming the
Seller as a 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.

     (l) Dealer Agreement. The Dealer that sold each Receivable to the
Seller has entered into a Dealer Agreement and such Dealer Agreement,
together with the assignment and related documentation signed by the
Dealer, constitutes the entire agreement between the Seller and the related
Dealer with respect to the sale of such Receivable to the Seller. Each such
Dealer Agreement is in full force and effect and is the legal, valid and
binding obligation of such Dealer; there have been no material defaults by
such Dealer with respect to such Receivable; the Seller has fully performed
all of its obligations under such Dealer Agreement; the Seller has not made
any statements or representations to such Dealer (whether written or oral)
inconsistent with any term of such Dealer Agreement; the Purchase Price (as
specified in the applicable Dealer Agreement) for such Receivable has been
paid in full by the Seller; there is no other payment of principal due to
such Dealer from the Seller for the purchase of such Receivable; such
Dealer has no right, title or interest in or to any Receivable; there is no
prior course of dealing between such Dealer and the Seller which will
materially and adversely affect the terms of such Dealer Agreement; and any
payment owed to such Dealer by the Seller is a corporate obligation of the
Seller.

     (li) Condition of Financed Vehicle. Each Receivable requires the
Obligor to maintain the related Financed Vehicle in good and workable
order.

     (lii) Condition of Financed Vehicle as of Transfer Date. To the best
of the Seller’s knowledge, each Financed Vehicle was properly delivered to
the related Obligor in good repair, without defects and in satisfactory
order, and each Financed Vehicle is in good operating condition and repair
as of the Transfer Date.

     (liii) [Reserved]

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

13

 

     (lv) Balance as of Cutoff Date. The aggregate principal balance of the
Receivables as of the Cutoff Date is equal to $[                                        ].

ARTICLE IV

Conditions

     Section 4.01. Conditions to Obligation of the Depositor. The obligation of the Depositor to
purchase the Receivables is subject to the satisfaction of the following conditions:

     (a) Representations and Warranties True. The representations and
warranties of the Seller hereunder shall be true and correct on the
Transfer Date with the same effect as if then made, and the Seller shall
have performed all obligations to be performed by it hereunder on or prior
to the Transfer Date.

     (b) Computer Files Marked. The Seller shall, at its own expense, on or
prior to the Transfer Date, indicate in its computer files that the
Receivables have been sold to the Depositor pursuant to this Agreement and
deliver to the Depositor the Schedule of Receivables, certified by the
Seller’s President, a Vice President or the Treasurer to be true, correct
and complete.

     (c) Documents To Be Delivered by the Seller on the Transfer Date.

     (i) Evidence of UCC Filing. On or prior to the Transfer Date, the
Seller shall record and file, at its own expense, a UCC-1 financing
statement, in each jurisdiction in which required by applicable law,
naming the Seller as debtor and naming the Depositor as secured party,
describing the Receivables and the other assets assigned to the
Depositor pursuant to Section 2.01 hereof, meeting the requirements of
the laws of each such jurisdiction and in such manner as is necessary
to perfect the sale, transfer, assignment and conveyance of the
Receivables and such other assets to the Depositor. The Seller shall
deliver to the Depositor a file-stamped copy or other evidence
satisfactory to the Depositor of such filing on or prior to the
Transfer Date.

     (ii) Other Documents. Such other documents as the Depositor may
reasonably request.

     (d) Other Transactions. The transactions contemplated by the Sale and
Servicing Agreement, the Indenture and the Trust Agreement to be
consummated on the Transfer Date shall be consummated on such date.

     Section 4.02. Conditions to Obligation of the Seller. The obligation of the Seller to sell the
Receivables to the Depositor is subject to the satisfaction of the following conditions:

     (a) Representations and Warranties True. The representations and
warranties of the Depositor hereunder shall be true and correct on the
Transfer Date with the same effect as if then made, and the Depositor shall
have performed all obligations to be performed by it hereunder on or prior
to the Transfer Date.

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     (b) Receivables Purchase Price. On the Transfer Date, the Depositor
shall have delivered to the Seller the Purchase Price specified in Section
2.01.

ARTICLE V

Covenants of the Seller

     The Seller agrees with the Depositor and the Indenture Trustee as follows:

     Section 5.01. Protection of Right, Title and Interest.

     (a) Filings. The Seller shall cause, at its own expense, all financing statements and
continuation statements and any other necessary documents (other than the costs to re-title the
Financed Vehicles in order to name a party other than the Seller as lienholder) covering the right,
title and interest of the Seller, the Depositor, the Trust and the Indenture Trustee, respectively,
in and to the Receivables and the other property included in the Trust Estate to be promptly filed
and at all times to be kept recorded, registered and filed, all in such manner and in such places
as may be required by law fully to preserve and protect the right, title and interest of the
Depositor hereunder, the Trust under the Sale and Servicing Agreement and the Indenture Trustee
under the Indenture in and to the Receivables and the other property included in the Trust Estate.
The Seller shall deliver to the Depositor and the Indenture Trustee file-stamped copies of, or
filing receipts for, any document recorded, registered or filed as provided above, as soon as
available following such recordation, registration or filing. The Depositor shall cooperate fully
with the Seller in connection with the obligations set forth above and will execute any and all
documents reasonably required to fulfill the intent of this paragraph.

     (b) Name Change. If the Seller makes any change in its name, identity or corporate structure
that would make any financing statement or continuation statement filed in accordance with
paragraph (a) above seriously misleading within the applicable provisions of the UCC or any title
statute, the Seller shall give the Depositor, the Indenture Trustee and the Owner Trustee written
notice thereof at least 45 days prior to such change and shall promptly file such financing
statements or amendments as may be necessary to continue the perfection of the Depositor’s interest
in the property conveyed pursuant to Section 2.01.

     Section 5.02. Other Liens or Interests. Except for the conveyances hereunder and pursuant to
the Basic Documents, the Seller shall not sell, pledge, assign or transfer to any Person, or grant,
create, incur, assume, or suffer to exist any Lien on, or any interest in, to or under the
Receivables, and the Seller shall defend the right, title and interest of the Depositor, the Trust
and the Indenture Trustee in, to and under the Receivables against all claims of third parties
claiming through or under the Seller.

     Section 5.03. Costs and Expenses. The Seller agrees to pay all reasonable costs and
disbursements in connection with the perfection, as against all third parties, of the Depositor’s,
the Issuer’s and the Indenture Trustee’s right, title and interest in and to the Receivables and
the other property included in the Trust Estate.

     Section 5.04. Hold Harmless. Seller shall protect, defend, indemnify and hold the Depositor
and the Issuer and their respective assigns and their attorneys, accountants, employees,

15

 

officers and directors harmless from and against all losses, liabilities, claims, damages and
expenses of every kind and character, as incurred, resulting from or relating to or arising out of
(i) the inaccuracy, nonfulfillment or breach of any representation, warranty, covenant or agreement
made by Seller in this Agreement, (ii) any legal action, including, without limitation, any
counterclaim, that has either been settled by the litigants (which settlement, if Seller is not a
party thereto shall be with the consent of Seller) or has proceeded to judgment by a court of
competent jurisdiction, in either case to the extent it is based upon alleged facts that, if true,
would constitute a breach of any representation, warranty, covenant or agreement made by Seller in
this Agreement, (iii) any actions or omissions of Seller or any employee or agent of Seller or any
Dealer occurring prior to the Transfer Date with respect to any of the Receivables or Financed
Vehicles or (iv) any failure of a Receivable to be originated in compliance with all requirements
of law. These indemnity obligations shall be in addition to any obligation that the Seller may
otherwise have.

ARTICLE VI

Indemnification

     Section 6.01. Indemnification.

     Without limiting any other rights any such Person may have hereunder or under applicable law,
the Seller hereby indemnifies and holds harmless the Depositor and its officers, directors, agents
and employees (each an “Indemnified Party”) from and against any and all damages, losses, claims,
liabilities, penalties, costs and expenses (including reasonable attorneys’ fees and court costs)
(all of the foregoing collectively, the “Indemnified Losses”) at any time imposed on or incurred by
any Indemnified Party arising out of or otherwise relating to this Agreement, the transactions
contemplated hereby or the acquisition of any of the Receivables, or any action taken or omitted by
any of the Indemnified Parties, whether arising by reason of the acts to be performed by the Seller
hereunder or otherwise, excluding only Indemnified Losses to the extent (a) such Indemnified Losses
resulted from gross negligence or willful misconduct of the Indemnified Party seeking
indemnification, (b) due to the financial inability of the Obligor to pay a Receivable and for
which reimbursement would constitute recourse to the Seller for uncollectible Receivables or (c)
such Indemnified Losses include taxes on, or measured by, the overall net income of the Depositor
or any other Indemnified Party.

ARTICLE VII

Miscellaneous Provisions

     Section 7.01. Obligations of Seller. The obligations of the Seller under this Agreement shall
not be affected by reason of any invalidity, illegality or irregularity of any Receivable.

     Section 7.02. Repurchase Events. The Seller hereby covenants and agrees with the Depositor for
the benefit of the Depositor, the Indenture Trustee, the Issuer, the Owner Trustee, the
Certificateholder and the Noteholders that the occurrence of a breach of any of the Seller’s
representations and warranties contained in Section 3.02(b), without regard to any limitation set
forth in such representation or warranty concerning the knowledge of the Seller as to the facts

16

 

stated therein, with respect to any Receivable shall constitute an event obligating the Seller to
repurchase such Receivables if the interests of the Depositor, the Indenture Trustee, the Owner
Trustee, the Issuer or the Securityholders are materially and adversely affected by such breach
(each, a “Repurchase Event”), at the Purchase Amount, from the Depositor or from the Issuer, as
applicable, unless any such breach shall have been cured by the last day of the first Collection
Period following the discovery or notice thereof by or to the Seller or the Servicer. The
repurchase obligation of the Seller shall constitute the sole remedy available to the Depositor,
the Indenture Trustee, the Owner Trustee, the Issuer and the Securityholders against the Seller
with respect to any Repurchase Event.

     Section 7.03. Depositor Assignment of Repurchased Receivables. With respect to all Receivables
repurchased by the Seller pursuant to this Agreement, the Depositor shall assign, without recourse,
representation or warranty, to the Seller all of the Depositor’s right, title and interest in and
to such Receivables and all security and documents relating thereto.

     Section 7.04. Transfer to the Issuer. The Seller acknowledges and agrees that (1) the
Depositor will, pursuant to the Sale and Servicing Agreement, transfer and assign the Receivables
and assign its rights under this Agreement with respect thereto to the Issuer and, pursuant to the
Indenture, the Issuer will pledge the Receivables to the Indenture Trustee, and (2) the
representations and warranties contained in this Agreement and the rights of the Depositor under
this Agreement, including under Section 7.02, are intended to benefit the Issuer, the Noteholders
and the Certificateholder. The Seller hereby consents to such transfers and assignments and agrees
that enforcement of a right or remedy hereunder by the Indenture Trustee, the Owner Trustee or the
Issuer shall have the same force and effect as if the right or remedy had been enforced or executed
by the Depositor.

     Section 7.05. Amendment. This Agreement may be amended from time to time, with prior written
notice to the Rating Agencies but without the consent of the Noteholders or the Certificateholder,
by a written amendment duly executed and delivered by the Seller and the Depositor, 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 Noteholders or the Certificateholder;
provided that such amendment shall not, as evidenced by an Opinion of Counsel, materially and
adversely affect the interest of any Noteholder or Certificateholder. This Agreement may also be
amended by the Seller and the Depositor, with prior written notice to the Rating Agencies and the
prior written consent of Holders of Notes evidencing at least a majority of the Outstanding Amount
of the Notes and Holders of Certificates evidencing at least a majority of the Certificate Balance
(excluding, for purposes of this Section 7.05, Certificates held by the Seller or any of its
affiliates), for the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Agreement or of modifying in any manner the rights of the Noteholders
or the Certificateholder; provided, however, that no such amendment may (i) increase or reduce in
any manner the amount of, or accelerate or delay the timing of, collections of payments on
Receivables or distributions that are required to be made for the benefit of Noteholders or the
Certificateholder or (ii) reduce the aforesaid percentage of the Notes or the Certificates that is
required to consent to any such amendment, without the consent of the Holders of all the
outstanding Notes and Certificates.

17

 

     Section 7.06. Waivers. No failure or delay on the part of the Depositor, the Issuer or the
Indenture Trustee in exercising any power, right or remedy under this Agreement or the Bill of Sale
shall operate as a waiver thereof, nor shall any single or partial exercise of any such power,
right or remedy preclude any other or further exercise thereof or the exercise of any other power,
right or remedy.

     Section 7.07. Notices. All demands, notices and communications under this Agreement shall be
in writing, personally delivered or mailed by certified mail, return receipt requested, to: (1) in
the case of the Seller, Hyundai Motor Finance Company, 10550 Talbert Avenue, Fountain Valley,
California 92708, Attention: Vice President, Finance, with a copy to General Counsel; (2) in the
case of the Depositor, Hyundai ABS Funding Corporation, 10550 Talbert Avenue, Fountain Valley,
California 92708, Attention: Vice President and Secretary, with a copy to General Counsel; (3) in
the case of Moody’s, Moody’s Investors Service, Inc., ABS Monitoring Department, 99 Church Street,
New York, New York 10007; (4) in the case of Standard & Poor’s, Standard & Poor’s, a division of
The McGraw-Hill Companies, Inc., 55 Water Street (40th Floor), New York, New York 10041, Attention:
Asset Backed Surveillance Department; (5) in the case of Fitch, Fitch, Inc., One State Street
Plaza, New York, New York 10004;or as to each of the foregoing, at such other address as shall be
designated by written notice to the other parties.

     Section 7.08. Costs and Expenses. The Seller shall pay all expenses incident to the
performance of its obligations under this Agreement and the Seller agrees to pay all reasonable
out-of-pocket costs and expenses of the Depositor, in connection with the perfection as against
third parties of the Depositor’s, the Issuer’s and the Indenture Trustee’s right, title and
interest in and to the Receivables and the enforcement of any obligation of the Seller hereunder.

     Section 7.09. Representations of the Seller and the Depositor. The respective agreements,
representations, warranties and other statements by the Seller and the Depositor set forth in or
made pursuant to this Agreement shall remain in full force and effect and will survive the closing
under Section 2.02 and the transfers and assignments referred to in Section 7.04.

     Section 7.10. Confidential Information. The Depositor agrees that it will neither use nor
disclose to any Person the names and addresses of the Obligors, except to enforce the Depositor’s
rights hereunder, under the Receivables, under the Sale and Servicing Agreement or any other Basic
Document, or as required by any of the foregoing or by law.

     Section 7.11. Headings and Cross-References. The various headings in this Agreement are
included for convenience only and shall not affect the meaning or interpretation of any provision
of this Agreement. References in this Agreement to section names or numbers are to such Sections of
this Agreement.

     Section 7.12. GOVERNING LAW. THIS AGREEMENT AND THE ASSIGNMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER OR THEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

18

 

     Section 7.13. Counterparts. This Agreement may be executed in counterparts, each of which
shall be an original, but all of which together shall constitute one and the same instrument.

     Section 7.14. Third Party Beneficiary. The Indenture Trustee is an express third party
beneficiary of this Agreement and shall be entitled to enforce the provisions of this Agreement as
if it were a party hereto.

     Section 7.15. No Proceedings. So long as this Agreement is in effect, and for one year plus
one day following its termination, the Seller agrees that it will not file any involuntary petition
or otherwise institute any bankruptcy, reorganization arrangement, insolvency or liquidation
proceeding or other proceedings under any federal or state bankruptcy law or similar law against
the Trust.

     Section 7.16. Nonpetition Covenant. Notwithstanding any prior termination of this Agreement,
the Seller shall not, prior to the date that is one year and one day after the termination of this
Agreement with respect to the Depositor, acquiesce, petition or otherwise invoke or cause the
Depositor to invoke the process of any court or government authority for the purpose of commencing
or sustaining a case against the Depositor 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 Depositor or any substantial part of its property, or ordering the
winding up or liquidation of the affairs of the Depositor.

19

 

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

	 	 	 	 	 
	 	HYUNDAI MOTOR FINANCE COMPANY

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	HYUNDAI ABS FUNDING CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

EXHIBIT A

Subordinated Promissory Note

[                                        ], 200[___]

     FOR VALUE RECEIVED, HYUNDAI ABS FUNDING CORPORATION (“Depositor”), hereby promises to pay to
the order of HYUNDAI MOTOR FINANCE COMPANY (“Seller”), at the principal office of Seller at 10550
Talbert Avenue, Fountain Valley, California, or at such other place as Seller may designate from
time to time, the unpaid principal amount hereof, together with accrued interest thereon at a rate
per annum equal to the prime rate as published on such day (or, if not then published, on the most
recently preceding day) in The Wall Street Journal as the “Prime Rate” (changes in the rate payable
hereunder shall be effective on each day on which a change in the Prime Rate is published), in
lawful money of the United States of America and in immediately available funds, on the sixtieth
(60th) day after the termination of the Purchase Agreement referred to below or, if such sixtieth
(60th) day is not a Business Day, on the first Business Day thereafter (such sixtieth (60th) day or
later Business Day being referred to as the “Maturity Date”), together with costs of collection and
reasonable attorney’s fees incurred by Seller in the collection of the indebtedness evidenced
hereby. Except as otherwise defined herein, capitalized terms used herein and defined in the
Receivables Purchase Agreement dated as of [                    ], 200[___] between Depositor and Seller (as
amended and modified or supplemented from time to time the “Purchase Agreement”) shall be used
herein as so defined. Interest shall be computed hereunder for the actual number of days elapsed on
the basis of a year consisting of three hundred sixty five (365) days.

     All accrued interest on the principal amount of this Note will be due and payable on each
Settlement Date; provided, however, that on or prior to the Maturity Date, unless Seller instructs
Depositor otherwise, such interest may be paid by means of an increase in the amount of the unpaid
principal amount hereof by an amount equal to the interest being so paid.

     The principal amount of this Note shall be initially established and thereafter adjusted from
time to time in accordance with the terms and conditions of the Purchase Agreement (the terms and
conditions of which are hereby incorporated in this Note by this reference) and the terms of this
Note. Seller shall record the initial principal amount of this Note, all adjustments thereto and
all payments thereof on Schedule A annexed hereto and made a part hereof, or on a continuation
thereof which shall be attached hereto and made a part hereof, and any such recordation shall,
absent manifest error, constitute prima facie evidence of the information so recorded; provided,
however, that the failure to so record shall not limit the obligations of Depositor hereunder or
under the Purchase Agreement.

     Depositor and, by its acceptance of this Note, Seller hereby acknowledge and agree that any
and all payments made or payable in respect of this Note are and shall remain subordinate and
junior in right of payment to any right of the seven classes of notes, designated as [___]% Asset
Backed Notes, Class A-1, [___]% Asset Backed Notes, Class A-2, [___]% Asset Backed Notes, Class
A-3, [___]% Asset Backed Notes, Class A-4, [___]% Asset Backed Notes, Class B, [___]% Asset
Backed Notes, Class C, and [___]% Asset Backed Notes, Class D, issued pursuant to the Indenture,
dated as of [                    ], 200[___] (as amended,

 

 

supplemented, amended and restated or otherwise modified from time to time), between the Hyundai
Auto Receivables Trust 200[___] and [                                        ] and the Hyundai Auto Receivables Trust 200[___]
Asset Backed Trust Certificates, issued pursuant to the Amended and Restated Trust Agreement, dated
as of [                    ], 200[___] (as amended, supplemented, amended and restated or otherwise modified
from time to time, the “Trust Agreement”), between the Depositor and [                    ], acting not in
its individual capacity but solely as owner trustee under the Trust Agreement, to receive any
payment by the Depositor thereunder. Depositor shall have the right to pay all or any part of the
unpaid principal amount of this Note without premium or penalty at any time; provided, that
interest shall be paid on the amount repaid to and including the date of repayment.

     Depositor hereby waives presentment, diligence, notice of dishonor, payment, demand, protest,
notice of protest, notice of nonpayment and all other demands and notices of every kind in
connection with the delivery, acceptance, performance and enforcement of this Note and, to the full
extent permitted by law, the right to plead any statute of limitations as a defense to any demands
hereunder. Depositor and, by its acceptance of this Note, Seller also assent to extension of the
time of payment, forbearance or other indulgence without notice.

     This Note applies to, inures to the benefit of, and binds the successors and assigns of,
Depositor and Seller. Neither Depositor nor Seller may assign any duties or obligations hereunder
without the prior written consent of the other party. THIS NOTE IS MADE UNDER, AND ALL QUESTIONS
CONCERNING THE CONSTRUCTION, VALIDITY AND INTERPRETATION OF THIS NOTE SHALL BE GOVERNED BY, THE
INTERNAL LAWS OF THE STATE OF NEW YORK.

     On the first Business Day after the Maturity Date at the close of business of which all
principal and accrued interest owing on this Note have been paid in full, this Note will be
surrendered to Depositor for cancellation.

 

 

     IN WITNESS WHEREOF, Depositor has executed and delivered this Note by its duly authorized
officer as of the day hereof.

	 	 	 	 	 
	 	HYUNDAI ABS FUNDING CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

ANNEX I to

EXHIBIT A

ANNEX A

REVOLVING PROMISSORY NOTE

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	UNPAID PRINCIPAL	 	 	 	 
	 	 	INCREASE IN	 	DECREASE IN	 	AMOUNT AFTER	 	REASON FOR	 	NOTATION
	DATE	 	PRINCIPAL AMOUNT	 	PRINCIPAL AMOUNT	 	ADJUSTMENT	 	ADJUSTMENT*	 	MADE BY
	 

	 	 
	 	 
	 	$	 	 	 	Initial Balance
	 	 

 

			
	*	 	Describe or use appropriate code specified below:
	 
	 	 	A=increase in lieu of cash payment of interest
	 
	 	 	B=increase/decrease pursuant to Section 1.2 of the Purchase and Sale
Agreement
	 
	 	 	C=decrease due to payment of principal

 

 

SCHEDULE I

Schedule of Receivables

[To be delivered to the Trust at Closing]

 

 

SCHEDULE II

Receivable File Schedule

	1.	 	All documents obtained or created in connection with the credit
investigation.
	 
	2.	 	All Obligor records including without limitation (i) file copy of
Receivable; (ii) copy of Dealer assignment (if applicable) and any
intervening assignments; (iii) warranty copy (if applicable); (iv) credit
life insurance policy (if applicable); (v) proof of auto insurance or
obligor agreement to provide such insurance; (vi) title application; (vii)
contract verification sheet; and (viii) original application.
	 
	3.	 	Original document file together with all documents maintained therein.
	 
	4.	 	Any and all other documents that the Servicer shall keep on file in
accordance with its customary procedures relating to a Receivable, an
Obligor or a Financed Vehicle.

 

 

SCHEDULE III

Reconveyance Agreements

[Reconveyance and Release Agreement dated as of [                    ], 200[___] among Hyundai BC Funding
Corporation, Societe Generale, Amsterdam Funding Corporation, Asset One Securitization, L.L.C. and
Sheffield Receivables Corporation]

[Receivables Transfer Agreement and Assignment, dated as of [                    ], 200[___] between Hyundai
Motor Finance Company and Hyundai BC Funding Corporation]

 

 

SCHEDULE IV

Conduit Documents

[Purchase and Sale Agreement dated as of [                    ], 200[___], as amended, between Hyundai Motor
Finance Company and Hyundai BC Funding Corporation]

[Second Amended and Restated Receivables Purchase Agreement dated as of [                    ], 200[___], as
amended, among Hyundai BC Funding Corporation, Hyundai Motor Finance Company, Amsterdam Funding
Corporation, Asset One Securities, L.L.C., Sheffield Receivables Corporation, ABN AMRO Bank N.V.,
Barclays Bank PLC and Societe Generale]exv10w3

 

EXHIBIT
10.3

 

 

FORM OF

OWNER TRUST ADMINISTRATION AGREEMENT

among

HYUNDAI AUTO RECEIVABLES TRUST 200[__],

HYUNDAI MOTOR FINANCE COMPANY, as Administrator,

and

[_________________________________], as Indenture Trustee

Dated as of [__________], 200[__]

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	Section 1.1 Duties of the Administrator with Respect to the Depository Agreement and the
Indenture
	 	 	2	 
	Section 1.2 Additional Duties
	 	 	5	 
	Section 1.3 Non-Ministerial Matters
	 	 	6	 
	Section 2. Records
	 	 	7	 
	Section 3. Compensation
	 	 	7	 
	Section 4. Additional Information To Be Furnished to the Issuer
	 	 	7	 
	Section 5. Independence of the Administrator
	 	 	7	 
	Section 6. No Joint Venture
	 	 	7	 
	Section 7. Other Activities of Administrator
	 	 	7	 
	Section 8. Term of Agreement; Resignation and Removal of
Administrator
	 	 	7	 
	Section 9. Action upon Termination, Resignation or
Removal
	 	 	9	 
	Section 10. Notices
	 	 	9	 
	Section 11. Amendments
	 	 	10	 
	Section 12. Successors and Assigns
	 	 	11	 
	Section 13. GOVERNING LAW
	 	 	11	 
	Section 14. Headings
	 	 	11	 
	Section 15. Counterparts
	 	 	11	 
	Section 16. Severability
	 	 	11	 
	Section 17. Not Applicable to [___________________] in Other
Capacities
	 	 	11	 
	Section 18. Limitation of Liability of Owner Trustee and Indenture
Trustee
	 	 	11	 
	Section 19. Third-Party Beneficiary
	 	 	12	 
	Section 20. Nonpetition Covenants
	 	 	12	 

i

 

	 	 	 	 	 
	 	 	Page	 
	Section 21. Liability of Administrator
	 	 	12	 

ii

 

          This OWNER TRUST ADMINISTRATION AGREEMENT dated as of [______], 200[___] among HYUNDAI AUTO
RECEIVABLES TRUST 200[___], a Delaware statutory business trust (the “Issuer”), HYUNDAI MOTOR
FINANCE COMPANY, a California corporation, as administrator (the “Administrator”), and
[______], a [______]l banking association, not in its individual capacity but solely
as Indenture Trustee (the “Indenture Trustee”).

WITNESSETH:

          WHEREAS, the Issuer was formed pursuant to a Trust Agreement dated as of [______], 200[___]
[and is governed by an Amended and Restated Trust Agreement dated as of [______], 200[___] (as
amended and supplemented from time to time, the “Trust Agreement”)], by and among Hyundai ABS
Funding Corporation, as depositor (the “Depositor”), [______], not in its individual
capacity but solely as owner trustee (the “Owner Trustee”), and Hyundai Motor Finance Company, as
administrator (the “Administrator”), and is issuing [___]% Asset Backed Notes, Class A-1, [___]%
Asset Backed Notes, Class A-2, [___]% Asset Backed Notes, Class A-3 and [___]% Asset Backed
Notes, Class A-4 (collectively, the “Class A Notes”), [___]% Asset Backed Notes, Class B (the
“Class B Notes”), [___]% Asset Backed Notes, Class C (the “Class C Notes”), and [___]% Asset
Backed Notes, Class D Notes (the “Class D Notes”, and, collectively with the Class A Notes, the
Class B Notes and the Class C Notes, the “Notes”) pursuant to the Indenture dated as of
[______], 200[___] (as amended and supplemented from time to time, the “Indenture”), between the
Issuer and the Indenture Trustee, and is issuing asset backed certificates (the “Trust
Certificates” and, collectively with the Notes, the “Securities”) pursuant to the Trust Agreement
(capitalized terms used and not otherwise defined herein shall have the meanings assigned to such
terms in the Indenture or the Trust Agreement, as applicable);

          WHEREAS, the Issuer has entered into certain agreements in connection with the issuance of the
Securities, including (i) a Sale and Servicing Agreement dated as of [______], 200[___] (as
amended and supplemented from time to time, the “Sale and Servicing Agreement”), among Hyundai
Motor Finance Company, as seller (in such capacity, the “Seller”) and as servicer (in such capacity
the “Servicer”), the Depositor, the Issuer and the Indenture Trustee, (ii) a Letter of
Representations dated [______], 200[___] (as amended and supplemented from time to time, the
“Depository Agreement”), among the Issuer, the Indenture Trustee, the Administrator and The
Depository Trust Company (“DTC”) relating to the Notes and (iii) the Indenture (the Sale and
Servicing Agreement, the Depository Agreement, the Indenture and the Trust Agreement being referred
to hereinafter collectively as the “Related Agreements”);

          WHEREAS, pursuant to the Related Agreements, the Issuer and Owner Trustee are required to
perform certain duties in connection with (a) the Notes and the collateral therefor pledged
pursuant to the Indenture (the “Collateral”) and (b) the beneficial ownership interests in the
Issuer (the registered holders of such interests being referred to herein as the “Owners”);

          WHEREAS, the Issuer and the Owner Trustee desire to have the Administrator perform certain of
the duties of the Issuer and the Owner Trustee referred to in the preceding

 

 

clause and to provide such additional services consistent with the terms of this Agreement and the
Related Agreements as the Issuer and the Owner Trustee may from time to time request; and

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

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

			
	Section 1.1	 	Duties of the Administrator with Respect to the Depository Agreement
and the Indenture.

          The Administrator agrees to perform all its duties as Administrator and all the duties of the
Issuer and the Owner Trustee under the Depository Agreement. In addition, the Administrator shall
consult with the Owner Trustee regarding the duties of the Issuer or the Owner Trustee under the
Indenture and the Depository Agreement. The Administrator shall monitor the performance of the
Issuer and shall advise the Owner Trustee when action is necessary to comply with the Issuer’s or
the Owner Trustee’s duties under the Indenture and the Depository Agreement. The Administrator
shall prepare for execution by the Issuer, or shall cause the preparation by other appropriate
persons of, all such documents, reports, filings, instruments, certificates and opinions that it
shall be the duty of the Issuer or the Owner Trustee to prepare, file or deliver pursuant to the
Indenture and the Depository Agreement. In furtherance of the foregoing, the Administrator shall
take all appropriate action that is the duty of the Issuer or the Owner Trustee to take pursuant to
the Indenture including, without limitation, such of the foregoing as are required with respect to
the following matters under the Indenture (parenthetical section references are to sections of the
Indenture):

          (A) the duty to cause the Note Register to be kept and to give the Indenture Trustee notice of
any appointment of a new Note Registrar and the location, or change in location, of the Note
Register (Section 2.04);

          (B) the notification of Noteholders of the final principal payment on their Notes (Section
2.08(b));

          (C) the preparation of or obtaining of the documents and instruments required for
authentication of the Notes and delivery of the same to the Indenture Trustee (Section 2.02);

          (D) the preparation, obtaining or filing of the instruments, opinions and certificates and
other documents required for the release of collateral (Section 4.04);

          (E) the maintenance of an office in the Borough of Manhattan, City of New York, for
registration of transfer or exchange of Notes (Section 3.02);

          (F) the duty to cause newly appointed Paying Agents, if any, to deliver to the Indenture
Trustee the instrument specified in the Indenture regarding funds held in trust (Section 3.03);

2

 

          (G) the direction to the Indenture Trustee to deposit moneys with Paying Agents, if any, other
than the Indenture Trustee (Section 3.03);

          (H) the obtaining and preservation of the Issuer’s qualification to do business in each
jurisdiction in which such qualification is or shall be necessary to protect the validity and
enforceability of the Indenture, the Notes, the Collateral and each other instrument and agreement
included in the Trust Estate (Section 3.04);

          (I) the preparation of all supplements and amendments to the Indenture and all financing
statements, continuation statements, instruments of further assurance and other instruments and the
taking of such other action as is necessary or advisable to protect the Trust Estate (Section
3.05);

          (J) the delivery of the Opinion of Counsel on the Closing Date and the annual delivery of
Opinions of Counsel as to the Trust Estate, and the annual delivery of the Officer’s Certificate
and certain other statements as to compliance with the Indenture (Sections 3.06 and 3.09);

          (K) the identification to the Indenture Trustee in an Officer’s Certificate of a Person with
whom the Issuer has contracted to perform its duties under the Indenture (Section 3.07(b));

          (L) the delivery of written notice to the Indenture Trustee and the Rating Agencies of a
Servicer Default under the Sale and Servicing Agreement and, if such Servicer Default arises from
the failure of the Servicer to perform any of its duties under the Sale and Servicing Agreement
with respect to the Receivables, the taking of all reasonable steps available to remedy such
failure (Section 3.07(d));

          (M) the duty to cause the Servicer to comply with Sections 4.09, 4.10, 4.11 and Article VII of
the Sale and Servicing Agreement (Section 3.14);

          (N) the preparation and obtaining of documents and instruments required for the release of the
Issuer from its obligations under the Indenture (Section 3.10(b));

          (O) the delivery of written notice to the Indenture Trustee and the Rating Agencies of each
Event of Default under the Indenture and each default by the Servicer or the Seller under the Sale
and Servicing Agreement and by the Seller or the Company under the Receivables Purchase Agreement
(Section 3.19);

          (P) the monitoring of the Issuer’s obligations as to the satisfaction and discharge of the
Indenture and the preparation and execution of an Officer’s Certificate and the obtaining of the
Opinion of Counsel and the Independent Certificate relating thereto (Section 4.01);

          (Q) the compliance with any written directive of the Indenture Trustee with respect to the
sale of the Trust Estate in a commercially reasonable manner if an Event of Default shall have
occurred and be continuing (Section 5.04);

3

 

          (R) the preparation and delivery of notice to Noteholders of the removal of the Indenture
Trustee and the appointment of a successor Indenture Trustee (Section 6.08);

          (S) the preparation of any written instruments required to confirm more fully the authority of
any co-trustee or separate trustee and any written instruments necessary in connection with the
resignation or removal of any co-trustee or separate trustee (Sections 6.08 and 6.10);

          (T) the furnishing to the Indenture Trustee with the names and addresses of Noteholders during
any period when the Indenture Trustee is not the Note Registrar (Section 7.01);

          (U) provide reasonable and appropriate assistance to the Depositor or its designees, as
applicable, with the preparation and filing with the Commission, any applicable state agencies and
the Indenture Trustee of documents required to be filed on a periodic basis with, and summaries
thereof as may be required by rules and regulations prescribed by, the Commission and any
applicable state agencies and the transmission of such summaries, as necessary, to the Noteholders
(Section 7.03);

          (V) the opening of one or more accounts in the Issuer’s name, the preparation and delivery of
Issuer Orders, Officer’s Certificates and Opinions of Counsel and all other actions necessary with
respect to investment and reinvestment of funds in the Trust Accounts (Sections 8.02 and 8.03);

          (W) the preparation of an Issuer Request and Officer’s Certificate and the obtaining of an
Opinion of Counsel and Independent Certificates, if necessary, for the release of the Trust Estate
(Sections 8.04 and 8.05);

          (X) the preparation of Issuer Orders and the obtaining of Opinions of Counsel with respect to
the execution of supplemental indentures and the mailing to the Noteholders of notices with respect
to such supplemental indentures (Sections 9.01, 9.02 and 9.03);

          (Y) the execution and delivery of new Notes conforming to any supplemental indenture (Section
9.05);

          (Z) the duty to notify Noteholders of redemption of the Notes or to cause the Indenture
Trustee to provide such notification (Section 10.02);

          (AA) the preparation and delivery of all Officer’s Certificates, Opinions of Counsel and
Independent Certificates with respect to any requests by the Issuer to the Indenture Trustee to
take any action under the Indenture (Section 11.01(a));

          (BB) the preparation and delivery of Officer’s Certificates and the obtaining of Independent
Certificates, if necessary, for the release of property from the lien of the Indenture (Section
11.01(b));

4

 

          (CC) the notification of the Rating Agencies, upon the failure of the Indenture Trustee to
give such notification, of the information required pursuant to Section 11.04 of the Indenture
(Section 11.04);

          (DD) the preparation and delivery to Noteholders and the Indenture Trustee of any agreements
with respect to alternate payment and notice provisions (Section 11.06);

          (EE) the recording of the Indenture, if applicable (Section 11.14);

          (FF) the preparation of Definitive Notes in accordance with the instructions of the Clearing
Agency (Section 2.12);

          (GG) the direction to Paying Agents to pay to the Indenture Trustee all sums held in trust by
such Paying Agents (Section 3.03); and

          (HH) provide the Indenture Trustee with the information necessary to deliver to each
Noteholder such information as may be reasonably required to enable such Holder to prepare its
United States federal and state and local income or franchise tax returns (Section 6.06).

Section 1.2 Additional Duties.

               (i) In addition to the duties of the Administrator set forth above, the Administrator shall
perform such calculations and shall prepare or shall cause the preparation by other appropriate
persons of, and shall execute on behalf of the Issuer or the Owner Trustee, all such documents,
reports, filings, instruments, certificates and opinions that it shall be the duty of the Issuer or
the Owner Trustee to prepare, file or deliver pursuant to the Related Agreements or Section
5.04(a), (b), (c) or (d) of the Trust Agreement, and at the request of the Owner Trustee shall take
all appropriate action that it is the duty of the Issuer or the Owner Trustee to take pursuant to
the Related Agreements. In furtherance thereof, the Owner Trustee shall, on behalf of itself and of
the Issuer, execute and deliver to the Administrator and to each successor Administrator appointed
pursuant to the terms hereof, one or more powers of attorney substantially in the form of Exhibit A
hereto, appointing the Administrator the attorney-in-fact of the Owner Trustee and the Issuer for
the purpose of executing on behalf of the Owner Trustee and the Issuer all such documents, reports,
filings, instruments, certificates and opinions. Subject to Section 5 of this Agreement, and in
accordance with the directions of the Owner Trustee, the Administrator shall administer, perform or
supervise the performance of such other activities in connection with the Collateral (including the
Related Agreements) as are not covered by any of the foregoing provisions and as are expressly
requested by the Owner Trustee and are reasonably within the capability of the Administrator. Such
responsibilities shall include providing to the Depositor and the Indenture Trustee the monthly
servicing report in an appropriate electronic form.

               (ii) Notwithstanding anything in this Agreement or the Related Agreements to the contrary, the
Administrator shall be responsible for performance of the duties of the Owner Trustee set forth in
Section 5.04(a), (b), (c) and (d), the penultimate sentence of Section 5.04 and Section 5.05(a) of
the Trust Agreement with respect to, among other things, accounting and reports to Owners;
provided, however, that the Owner Trustee shall retain

5

 

responsibility for the distribution of the Schedule K-1s (as prepared by the Administrator)
necessary to enable each Owner to prepare its federal and state income tax returns.

               (iii) The Administrator shall satisfy its obligations with respect to clause (ii) above by
retaining, at the expense of the Trust payable by the Administrator, a firm of independent public
accountants (the “Accountants”) acceptable to the Owner Trustee, which shall perform the
obligations of the Administrator thereunder.

               (iv) The Administrator shall perform the duties of the Administrator including, without
limitation, those specified in Sections 8.01, 8.02 and 10.02 of the Trust Agreement required to be
performed in connection with the fees, expenses and indemnification and the resignation or removal
of the Owner Trustee, and any other duties expressly required to be performed by the Administrator
under the Trust Agreement.

               (v) In carrying out the foregoing duties or any of its other obligations under this Agreement,
the Administrator may enter into transactions or otherwise deal with any of its affiliates;
provided, however, that the terms of any such transactions or dealings shall be in accordance with
any directions received from the Issuer and shall be, in the Administrator’s opinion, no less
favorable to the Issuer than would be available from unaffiliated parties.

Section 1.3 Non-Ministerial Matters.

          With respect to matters that in the reasonable judgment of the Administrator are
non-ministerial, the Administrator shall not take any action unless within a reasonable time before
the taking of such action, the Administrator shall have notified the Owner Trustee of the proposed
action and the Owner Trustee shall have withheld consent or provided an alternative direction.
Unless explicitly provided under this Administration Agreement, for the purpose of the preceding
sentence, “non-ministerial matters” shall include, without limitation:

          (A) the amendment of or any supplement to the Indenture;

          (B) the initiation of any claim or lawsuit by the Issuer and the compromise of any action,
claim or lawsuit brought by or against the Issuer (other than in connection with the collection of
the Receivables).

          (C) the amendment, change or modification of the Related Agreements;

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

          (E) the removal of the Indenture Trustee.

Notwithstanding anything to the contrary in this Agreement, the Administrator shall not be
obligated to, and shall not, (x) make any payments to the Noteholders under the Related Agreements,
(y) sell the Trust Estate pursuant to Section 5.04 of the Indenture or (z) take any other action
that the Issuer directs the Administrator not to take on its behalf.

6

 

Section 2. Records.

The Administrator shall maintain appropriate books of account and records
relating to services performed hereunder, which books of account and records shall be accessible
for inspection by the Issuer at any time during normal business hours.

Section 3. Compensation.

As compensation for the performance of the Administrator’s obligations
under this Agreement and as reimbursement for its expenses related thereto, the Administrator shall
be paid by the Servicer as set forth in Schedule C to the Sale and Servicing Agreement.

Section 4. Additional Information To Be Furnished to the Issuer.

The Administrator shall furnish to
the Issuer from time to time such additional information regarding the Collateral as the Issuer
shall reasonably request.

Section 5. Independence of the Administrator.

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

Section 6. No Joint Venture.

Nothing contained in this Agreement (i) shall constitute the
Administrator and either of the Issuer or the Owner Trustee as members of any partnership, joint
venture, association, syndicate, unincorporated business or other separate entity, (ii) shall be
construed to impose any liability as such on any of them or (iii) shall be deemed to confer on any
of them any express, implied or apparent authority to incur any obligation or liability on behalf
of the others.

Section 7. Other Activities of Administrator.

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

          The Administrator and its affiliates may generally engage in any kind of business with any
person party to a Related Agreement, any of its affiliates and any person who may do business with
or own securities of any such person or any of its affiliates, without any duty to account therefor
to the Issuer, the Owner Trustee or the Indenture Trustee.

Section 8. Term of Agreement; Resignation and Removal of Administrator.

          (a) This Agreement shall continue in force until the dissolution of the Issuer, upon which
event this Agreement shall automatically terminate.

          (b) Subject to Sections 8(e) and (f), the Administrator may resign its duties hereunder by
providing the Issuer with at least 60 days’ prior written notice.

7

 

          (c) Subject to Sections 8(e) and (f), the Issuer may remove the Administrator without cause by
providing the Administrator with at least 60 days’ prior written notice.

          (d) Subject to Sections 8(e) and (f), at the sole option of the Issuer, the Administrator may
be removed immediately upon written notice of termination from the Issuer to the Administrator if
any of the following events shall occur:

               (i) the Administrator shall default in the performance of any of its duties under this
Agreement and, after notice of such default, shall not cure such default within ten Business Days
(or, if such default cannot be cured in such time, shall not give within ten days such assurance of
cure as shall be reasonably satisfactory to the Issuer);

               (ii) a court having jurisdiction in the premises shall enter a decree or order for relief, and
such decree or order shall not have been vacated within 60 days, in respect of the Administrator in
any involuntary case under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect or appoint a receiver, liquidator, assignee, custodian, trustee, sequestrator
or similar official for the Administrator or any substantial part of its property or order the
winding-up or liquidation of its affairs; or

               (iii) the Administrator shall commence a voluntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, shall consent to the entry of an order
for relief in an involuntary case under any such law, shall consent to the appointment of a
receiver, liquidator, assignee, trustee, custodian, sequestrator or similar official for the
Administrator or any substantial part of its property, shall consent to the taking of possession by
any such official of any substantial part of its property, shall make any general assignment for
the benefit of creditors or shall fail generally to pay its debts as they become due.

               The Administrator agrees that if any of the events specified in clauses (ii) or (iii) of this
Section shall occur, it shall give written notice thereof to the Issuer and the Indenture Trustee
within seven days after the happening of such event.

          (e) No resignation or removal of the Administrator pursuant to this Section shall be effective
until (i) a successor Administrator shall have been appointed by the Issuer, (ii) such successor
Administrator shall have agreed in writing to be bound by the terms of this Agreement in the same
manner as the Administrator is bound hereunder and (iii) the Owner Trustee and the Indenture
Trustee consent to the successor Administrator.

          (f) The appointment of any successor Administrator shall be effective only after receipt of
written confirmation from each Rating Agency that the proposed appointment will not result in the
qualification, downgrading or withdrawal of any rating assigned to the Notes by such Rating Agency.

          (g) A successor Administrator shall execute, acknowledge and deliver a written acceptance of
its appointment hereunder to the resigning Administrator and to the Issuer. Thereupon the
resignation or removal of the resigning Administrator shall become effective, and the successor
Administrator shall have all the rights, powers and duties of the Administrator under this
Agreement. The successor Administrator shall mail a notice of its succession to the Noteholders and
the Certificateholders. The resigning Administrator shall promptly transfer or

8

 

cause to be transferred all property and any related agreements, documents and statements held by
it as Administrator to the successor Administrator and the resigning Administrator shall execute
and deliver such instruments and do other things as may reasonably be required for fully and
certainly vesting in the successor Administrator all rights, power, duties and obligations
hereunder.

          (h) In no event shall a resigning Administrator be liable for the acts or omissions of any
successor Administrator hereunder.

          (i) In the exercise or administration of its duties hereunder and under the Related Documents,
the Administrator may act directly or through its agents or attorneys pursuant to agreements
entered into with any of them, and the Administrator shall not be liable for the conduct or
misconduct of such agents or attorneys if such agents or attorneys shall have been selected by the
Administrator with due care.

Section 9. Action upon Termination, Resignation or Removal.

Promptly upon the effective date of
termination of this Agreement pursuant to Section 8(a) or the resignation or removal of the
Administrator pursuant to Section 8(b) or (c), respectively, the Administrator shall be entitled to
be paid all fees and reimbursable expenses accruing to it to the date of such termination,
resignation or removal. The Administrator shall forthwith upon such termination pursuant to Section
8(a) deliver to the Issuer all property and documents of or relating to the Collateral then in the
custody of the Administrator. In the event of the resignation or removal of the Administrator
pursuant to Section 8(b) or (c), respectively, the Administrator shall cooperate with the Issuer
and take all reasonable steps requested to assist the Issuer in making an orderly transfer of the
duties of the Administrator.

Section 10. Notices.

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

               (i) if to the Issuer or the Owner Trustee, to:

	 	 	 
	 

	 	Hyundai Auto Receivables Trust 200[___]
	 

	 	In care of [______]
	 

	 	[______]
	 

	 	[______]
	 

	 	[______]
	 

	 	Attention: [______]

9

 

               (ii) if to the Administrator, to:

	 	 	 
	 

	 	Hyundai Motor Finance Company
	 

	 	10550 Talbert Avenue
	 

	 	Fountain Valley, CA 92708
	 

	 	Attention: Vice President, Finance

                    with a copy to the General Counsel

               (iii) if to the Indenture Trustee, to:

	 	 	 
	 

	 	[______]
	 

	 	[______]
	 

	 	[______]
	 

	 	Attention: [______]

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

Section 11. Amendments.

          This Agreement may be amended from time to time by a written amendment duly
executed and delivered by the Issuer, the Administrator and the Indenture Trustee, with the written
consent of the Owner Trustee, without the consent of the Noteholders and the Certificateholders,
for the purpose of adding any provisions to or changing in any manner or eliminating any of the
provisions of this Agreement; provided that (i) such amendment will not materially and adversely
affect the interest of any Noteholder or Certificateholder as confirmed by an opinion of counsel
provided to the Indenture Trustee and (ii) the Administrator shall have delivered to the Owner
Trustee and the Indenture Trustee, an Opinion of Counsel stating that, in the opinion of such
counsel, either (A) all financing statements and continuation statements have been filed that are
necessary to fully preserve and protect the interest of the Owner Trustee and the Indenture Trustee
in the Receivables, and reciting the details of such filings or referring to prior Opinions of
Counsel in which such details are given, or (B) no such action shall be necessary to preserve and
protect such interest. This Agreement may also be amended by the Issuer, the Administrator and the
Indenture Trustee with the written consent of the Owner Trustee and the holders of Notes evidencing
at least a majority of the Outstanding Amount of the Controlling Class and the holders of Trust
Certificates evidencing at least a majority of the Certificate Percentage Interests 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 Noteholders or the Certificateholders;
provided, however, that no such amendment may (i) increase or reduce in any manner the amount of,
or accelerate or delay the timing of, collections of payments on Receivables or distributions that
are required to be made for the benefit of the Noteholders or Certificateholders or (ii) reduce the
aforesaid percentage of the holders of Notes and Trust Certificates which are required to consent
to any such amendment, without the consent of the holders of all the outstanding Notes and Trust
Certificates. Notwithstanding the foregoing, the Administrator may not amend this Agreement without
the permission of the Seller, which permission shall not be unreasonably withheld.

10

 

Section 12. Successors and Assigns.

This Agreement may not be assigned by the Administrator unless
such assignment is previously consented to in writing by the Issuer and the Owner Trustee and
subject to the satisfaction of the Rating Agency Condition in respect thereof. An assignment with
such consent and satisfaction, if accepted by the assignee, shall bind the assignee hereunder in
the same manner as the Administrator is bound hereunder. Notwithstanding the foregoing, this
Agreement may be assigned by the Administrator without the consent of the Issuer or the Owner
Trustee to a corporation or other organization that is a successor (by merger, consolidation or
purchase of assets) to the Administrator; provided that such successor organization executes and
delivers to the Issuer, the Owner Trustee and the Indenture Trustee an agreement in which such
corporation or other organization agrees to be bound hereunder by the terms of said assignment in
the same manner as the Administrator is bound hereunder and represents that it has the financial
ability to satisfy its indemnification obligations hereunder. Notwithstanding the foregoing, the
Administrator can transfer its obligations to any affiliate that succeeds to substantially all of
the assets and liabilities of the Administrator and who has represented and warranted that it is
not less creditworthy than the Administrator. Subject to the foregoing, this Agreement shall bind
any successors or assigns of the parties hereto.

Section 13. GOVERNING LAW.

THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS
AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

Section 14. Headings.

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

Section 15. Counterparts.

This Agreement may be executed in counterparts, each of which when so
executed shall be an original, but all of which together shall constitute but one and the same
agreement.

Section 16. Severability.

Any provision of this Agreement that is prohibited or unenforceable in
any jurisdiction shall be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

Section 17. Not Applicable to [________________________] in Other Capacities.

Nothing in this
Agreement shall affect any obligation [______] may have in any other capacity.

Section 18. Limitation of Liability of Owner Trustee and Indenture Trustee.

          (a) Notwithstanding anything contained herein to the contrary, this instrument has been
executed by the Owner Trustee solely in its capacity as Owner Trustee and in no event shall the
Owner Trustee in its individual capacity or any beneficial owner of the Issuer have any

11

 

liability for the representations, warranties, covenants, agreements or other obligations of the
Issuer hereunder, as to all of which recourse shall be had solely to the assets of the Issuer. For
all purposes of this Agreement, in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits of, the terms and
provisions of Articles VI, VII and VIII of the Trust Agreement.

          (b) Notwithstanding anything contained herein to the contrary, this Agreement has been
countersigned by the Indenture Trustee solely as Indenture Trustee and in no event shall the
Indenture Trustee have any liability for the representations, warranties, covenants, agreements or
other obligations of the Issuer hereunder or in any of the certificates, notices or agreements
delivered pursuant hereto, as to all of which recourse shall be had solely to the assets of the
Issuer.

          (c) No recourse under any obligation, covenant or agreement of the Issuer contained in this
Agreement shall be had against any agent of the Issuer (including the Administrator and the Owner
Trustee) as such by the enforcement of any assessment or by any legal or equitable proceeding, by
virtue of any statute or otherwise; it being expressly agreed and understood that this Agreement is
solely an obligation of the Issuer as a Delaware statutory business trust, and that no personal
liability whatever shall attach to or be incurred by any agent of the Issuer (including the
Administrator and the Owner Trustee), as such, under or by reason of any of the obligations,
covenants or agreements of the Issuer contained in this Agreement, or implied therefrom, and that
any and all personal liability for breaches by the Issuer of any such obligations, covenants or
agreements, either at common law or at equity, or by statute or constitution, of every such agent
is hereby expressly waived as a condition of and in consideration for the execution of this
Agreement.

Section 19. Third-Party Beneficiary.

The Seller, the Depositor and the Owner Trustee are
third-party beneficiaries to this Agreement and are entitled to the rights and benefits hereunder
and may enforce the provisions hereof as if each were a party hereto.

Section 20. Nonpetition Covenants.

Notwithstanding any prior termination of this Agreement, the
Administrator and the Indenture Trustee shall not, prior to the date which is one year and one day
after the termination of this Agreement with respect to the Issuer, acquiesce, petition or
otherwise invoke or cause the Issuer to invoke the process of any court of government authority for
the purpose of commencing or sustaining a case against 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 Issuer or any substantial part of its
property, or ordering the winding up or liquidation of the affairs of the Issuer.

Section 21. Liability of Administrator.

Notwithstanding any provision of this Agreement, the
Administrator shall not have any obligations under this Agreement other than those specifically set
forth herein, and no implied obligations of the Administrator shall be read into this Agreement.
Neither the Administrator nor any of its directors, officers, agents or employees shall be liable
for any action taken or omitted to be taken in good faith by it or them under or in connection with
this Agreement, except for its or their own gross negligence or willful misconduct and in no event
shall the Administrator be liable under or in connection with this Agreement for indirect, special
or consequential losses or damages of any kind, including lost

12

 

profits, even if advised of the possibility thereof and regardless of the form of action by which
such losses or damages may be claimed. Without limiting the foregoing, the Administrator may (a)
consult with legal counsel (including counsel for the Issuer), independent public accountants and
other experts selected by it and shall not be liable for any action taken or omitted to be taken in
good faith by it in accordance with the advice of such counsel, accountants or experts and (b)
shall incur no liability under or in respect of this Agreement by acting upon any notice (including
notice by telephone), consent, certificate or other instrument or writing (which may be by
facsimile) believed by it to be genuine and signed or sent by the proper party or parties.

13

 

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

	 	 	 	 	 
	 	 	HYUNDAI AUTO RECEIVABLES TRUST 200[__]
	 
	 	 	 	 
	 

	 	By:
	 	[______], not in its
individual capacity but solely as
Owner Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	[________________________], not in its
individual capacity but solely as
Indenture Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	HYUNDAI MOTOR FINANCE COMPANY, as

Administrator
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

 

 

EXHIBIT A                         

POWER OF ATTORNEY

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	STATE OF

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	COUNTY OF

	 	 	)	 	 	 

          KNOW ALL MEN BY THESE PRESENTS, that Hyundai Auto Receivables Trust 200[___] (the “Issuer”),
does hereby make, constitute and appoint Hyundai Motor Finance Company, as administrator (the
“Administrator”) under the Owner Trust Administration Agreement dated [______], 200[___] (the
“Administration Agreement”), among the Issuer, the Administrator, the Owner Trustee, and
[______], as Indenture Trustee, as the same may be amended from time to time, and its
agents and attorneys, as Attorneys-in-Fact to execute on behalf of the Owner Trustee or the Issuer
all such documents, reports, filings, instruments, certificates and opinions as it should be the
duty of the Owner Trustee or the Issuer to prepare, file or deliver pursuant to the Basic
Documents, or pursuant to Section 5.04(a), (b), (c) or (d) of the Trust Agreement, including,
without limitation, to appear for and represent the Owner Trustee and the Issuer in connection with
the preparation, filing and audit of federal, state and local tax returns pertaining to the Issuer,
and with full power to perform any and all acts associated with such returns and audits that the
Owner Trustee could perform, including without limitation, the right to distribute and receive
confidential information, defend and assert positions in response to audits, initiate and defend
litigation, and to execute waivers of restrictions on assessments of deficiencies, consents to the
extension of any statutory or regulatory time limit, and settlements.

          All powers of attorney for this purpose heretofore filed or executed by the Owner Trustee are
hereby revoked.

          Capitalized terms that are used and not otherwise defined herein shall have the meanings
ascribed thereto in the Administration Agreement.

          EXECUTED this [___] day of [______], 200[___].

	 	 	 	 	 
	 	 	HYUNDAI AUTO RECEIVABLES TRUST 200[__]
	 
	 	 	 	 
	 

	 	By:
	 	[______], not in its
individual capacity but solely as
Owner Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

 

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	STATE OF

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	COUNTY OF

	 	 	)	 	 	 

          Before me, the undersigned authority, on this day personally appeared ______,
known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged
to me that s/he signed the same for the purposes and considerations therein expressed.

Sworn to before me this ___

day of [______], 200[___].

Notary Public — State of ______

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