Document:

Exhibit 10.12

 

Exhibit 10.12

ACCESSION AGREEMENT

Dated as of April 4, 2007

     Reference is hereby made to the INTERCREDITOR AND MASTER COLLECTION ACCOUNT AGREEMENT, dated
as of December 7, 2006 (the “Agreement”) among,

WELLS FARGO BANK, NATIONAL ASSOCIATION, in its capacity as the Collateral Custodian
under the Wachovia Warehouse Agreement, the Trust Collateral Agent under the
Existing Securitizations, the Indenture Trustee under the Existing Indentures and
the Master Collection Account Agent under this Agreement (“Wells Fargo”),

WACHOVIA CAPITAL MARKETS, LLC, in its capacity as the Administrative Agent under the
Wachovia Warehouse Agreement (“Wachovia Warehouse Collateral Agent”),

DRIVE CONSUMER USA INC. (“Drive”),

DRIVE WAREHOUSE LP (“Drive Warehouse”),

DRIVE RECEIVABLES CORP. 6, DRIVE RECEIVABLES CORP. 7, DRIVE RECEIVABLES CORP. 8,
DRIVE RECEIVABLES CORP. 9, DRIVE RECEIVABLES CORP. 10, DRIVE RECEIVABLES CORP. 11
and DRIVE RECEIVABLES CORP. 12 (each a “Seller” and collectively the
“Existing Sellers”),

DRIVE AUTO RECEIVABLES TRUST 2003-2, DRIVE AUTO RECEIVABLES TRUST 2004-1, DRIVE AUTO
RECEIVABLES TRUST 2005-1, DRIVE AUTO RECEIVABLES TRUST 2005-2, DRIVE AUTO
RECEIVABLES TRUST 2005-3, DRIVE AUTO RECEIVABLES TRUST 2006-1 AND DRIVE AUTO
RECEIVABLES TRUST 2006-2, (each a “Trust” or an “Issuer” and
collectively the “Existing Trusts” or the “Existing Issuers”),

MBIA INSURANCE CORPORATION, in its capacity as the Class A Insurer under the MBIA
Securitizations (“MBIA”), and

FINANCIAL SECURITY ASSURANCE INC., in its capacity the Class A Insurer under the FSA
Securitizations (“FSA”).

     Unless otherwise defined herein, or the context otherwise requires, capitalized terms used in
this Accession Agreement have the meanings ascribed thereto in the Agreement. This is an Accession
Agreement and is being entered into pursuant to the Agreement.

     1. Each of the undersigned Other Parties hereby:

 

     (a) acknowledges and confirms that it has received a copy of the Agreement and the
exhibits thereto;

     (b) agrees to be bound by the terms and conditions set forth in the Agreement as if it
were an original signatory thereto; and

     (c) advises each of the parties to the Agreement of the following with respect to the
Other Party for purposes of the Agreement:

	 	2.	 	Names and Addresses of Other Parties:
	 
	 	 	 	Santander Drive Auto Receivables Trust 2007-1

c/o U.S. Bank Trust National Association

300 Delaware Avenue, 9th Floor

Wilmington, Delaware 19801

Attention: Sterling Correia

Telephone No.: (302) 552-3104

Facsimile: (302) 552-3129
	 
	 	 	 	Santander Drive Auto Receivables LLC

8585 North Stemmons Freeway, Suite 1100-N

Dallas, TX 75247

Attention: Jim Moore

Telephone No.: (214) 237-3530

Facsimile: (214) 237-3570
	 
	 	 	 	Financial Guaranty Insurance Company

125 Park Avenue

New York, New York 10017

Attention: Structure Finance Surveillance — Santander Drive 2007-1

Facsimile: (212) 312-3220

Confirmation: (800) 352-0001

E-mail: SFsurveillance@fgic.com
	 
	 	3.	 	Description of Securitization or other Transaction:
	 
	 	 	 	The securitization transaction described in the Sale and Servicing
Agreement, dated as of April 4, 2007, among Santander Drive Auto Receivables
Trust 2007-1, as Issuer, Santander Drive Auto Receivables LLC, as Seller,
Santander Consumer USA Inc., as Master Servicer, Wells Fargo Bank, National
Association, as Indenture Trustee and Backup Servicer, as it may from time
to time be amended, supplemented or otherwise modified in accordance with
the terms thereof and the other transaction documents related thereto (the
“Santander Drive 2007-1 Securitization”).

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	 	 	 	The Indenture dated as of April 4, 2007 between Santander Drive Auto
Receivables Trust 2007-1, as Issuer, and Wells Fargo Bank, National
Association, as Indenture Trustee (the “Santander Drive 2007-1
Indenture”).
	 
	 	4.	 	Designations under the Agreement:

	 	(a)	 	The Santander Drive 2007-1 Securitization is a
Securitization.
	 
	 	(b)	 	The Santander Drive 2006-2 Indenture is an
Indenture.
	 
	 	(c)	 	Santander Drive Auto Receivables LLC is a
Seller.
	 
	 	(d)	 	Santander Drive Auto Receivables Trust 2007-1
is a Trust.
	 
	 	(e)	 	Financial Guaranty Insurance Company is a Class
A Insurer.

[rest of page left intentionally blank]

3

 

     IN WITNESS WHEREOF, the Other Parties have executed this Accession Agreement as of the date
first written above.

	 	 	 	 	 
	 

	 	SANTANDER DRIVE AUTO 
RECEIVABLES LLC	 	 
	 
	 	 	 	 
	 

	 	By: /s/ Jim W. Moore
 

Name: Jim W. Moore

Title: Vice President
	 	 
	 
	 	 	 	 
	 

	 	SANTANDER DRIVE AUTO RECEIVABLES TRUST 2007-1	 	 
	 
	 	 	 	 
	 

	 	By: U.S. Bank Trust National Association, not
in its individual capacity but solely as Owner
Trustee	 	 
	 
	 	 	 	 
	 

	 	By: /s/ Sterling C. Correia
 

Name: Sterling C. Correia

Title: Vice President
	 	 
	 
	 	 	 	 
	 

	 	FINANCIAL GUARANTY INSURANCE COMPANY	 	 
	 
	 	 	 	 
	 

	 	By: /s/ Matthew Fanelli
 

Name: Matthew Fanelli

Title: Director
	 	 

Signature Page

Accession Agreement to Intercreditor Agreement

4Exhibit 10.13

 

Exhibit 10.13

LETTER OF CREDIT REIMBURSEMENT AGREEMENT

     THIS LETTER OF CREDIT REIMBURSEMENT AGREEMENT, dated as of April 4, 2007 (this “Reimbursement
Agreement”), is entered into among SANTANDER DRIVE AUTO RECEIVABLES TRUST 2007-1, a Delaware
statutory trust (the “Issuer”), WELLS FARGO BANK, NATIONAL ASSOCIATION (“Wells Fargo”), as
indenture trustee (in such capacity, the “Indenture Trustee”), SANTANDER DRIVE AUTO RECEIVABLES
LLC, a Delaware limited liability company, as seller (the “Seller”), SANTANDER CONSUMER USA INC.,
an Illinois corporation (“Santander Consumer”), as servicer (in such capacity, the “Servicer”), and
WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking association (“Wachovia Bank”), as letter of
credit issuer (in such capacity, the “Letter of Credit Issuer”).

RECITALS

     WHEREAS, the Seller, the Servicer, the Issuer, the Indenture Trustee and Wells Fargo, as
backup servicer, are, concurrently herewith, entering into a Sale and Servicing Agreement, dated as
of April 4, 2007 (the “Sale and Servicing Agreement”), pursuant to which the Issuer is acquiring
from the Seller a pool of retail installment sales contracts (the “Contracts”) secured by new and
used automobiles, light-duty trucks, vans and mini-vans financed thereby;

     WHEREAS, the Issuer and the Indenture Trustee are, concurrently herewith, entering into an
indenture, dated as of April 4, 2007 (the “Indenture”), pursuant to which the Issuer is issuing
$1,200,000,000 aggregate principal amount of Class A Asset Backed Notes (the “Notes”);

     WHEREAS, Wachovia Bank, as administrative agent and as issuing bank, Drive Residual Holdings
LP, as borrower, Santander Consumer, as originator, the financial institutions signatory thereto
from time to time (the “Lenders”) and Wachovia Capital Markets, LLC, as arranger, have entered into
an amended and restated credit agreement, dated as of December 7, 2006 (the “Credit Agreement”),
pursuant to which Wachovia Bank, as Letter of Credit Issuer, may provide, pursuant to the terms and
conditions contained in the Credit Agreement, the Letter of Credit, in substantially the form
attached hereto as Exhibit A; and

     WHEREAS, the parties hereto wish to set forth certain terms and conditions relating to the
issuance of the Letter of Credit in connection with the Notes and the Reserve Amount.

     NOW, THEREFORE, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.1. Definitions. As used in this Reimbursement Agreement and unless the
context requires a different meaning, capitalized terms defined in the recitals, the heading and
text hereof shall have their defined meanings when used herein, and capitalized terms not otherwise
defined herein shall have the meanings assigned to such terms in the Sale and Servicing Agreement
and the following terms shall have the following meanings:

 

 

     “Base Rate” shall mean, as of any date, a rate per annum equal to the greater of (i)
the rate announced by Wachovia Bank from time to time as its prime rate in the United States, such
rate to change as and when such designated rate changes, which rate is not intended to be the
lowest rate of interest charged by Wachovia Bank in connection with extensions of credit to debtors
or (ii) a fluctuating interest rate per annum (rounded upwards, if necessary, to the nearest 1/100
of 1%) equal for each day during such period to the weighted average of the federal funds rates as
quoted by Wachovia Bank and confirmed in Federal Reserve Board Statistical Release H.15(519) or any
successor or substitute publication selected by Wachovia Bank (or, if such day is not a Business
Day, for the preceding Business Day), or, if for any reason such rate is not available on any day,
the rate determined, in the sole opinion of Wachovia Bank, to be the rate at which federal funds
are being offered for sale in the national federal funds market at 9:00 a.m. (Charlotte, North
Carolina time) on such day, plus 1.00%.

     “Cash Flow” means cash flow supporting the Notes, calculated in accordance with Item
1114 of Regulation AB, as determined by the Issuer or the Servicer in its reasonable discretion.

     “Commission” means the United States Securities and Exchange Commission.

     “Eligible Letter of Credit Issuer” means an institution with a short-term debt or
deposit rating at least equal to A-1 or the equivalent from S&P and Prime-1 or the equivalent from
Moody’s and a long-term debt or deposit rating at least equal to A or the equivalent from S&P and
A2 or the equivalent from Moody’s.

     “Exchange Act” means the Securities Exchange Act of 1934, including, unless the
context otherwise requires, the rules and regulations thereunder.

     “Exchange Act Reports” means all Distribution Reports on Form 10-D, Current Reports on
Form 8-K and Annual Reports on Form 10-K that are required to be filed by the Seller or the Issuer
with respect to the Notes pursuant to the Exchange Act.

     “Letter of Credit” means the Reserve Account Letter of Credit issued by the Letter of
Credit Issuer, substantially in the form of Exhibit A.

     “Letter of Credit Draw Amount” means any unreimbursed drawing under the Letter of
Credit.

     “Rating Agency Condition” means written confirmation by each Rating Agency that its
then current rating of the Notes, without giving effect to the Note Policy, shall not be reduced or
withdrawn.

     “Repayment Amount” shall mean the sum of all amounts payable with respect to any
outstanding Letter of Credit Draw Amounts, fees, interest and expenses and all other amounts owing
to the Letter of Credit Issuer hereunder and to Wachovia Bank and the Lenders under the Credit
Agreement, with respect to the Letter of Credit.

     “Regulation AB” means Subpart 229.1100 — Asset Backed Securities (Regulation AB), 17
C.F.R. § § 229.1100-229.1123, and subject to such clarification and interpretation as have been
provided by the Commission in the adopting release (Asset-Backed Securities, Securities

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Act Release no. 33-8518.70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff of the
Commission, or as may be provided by the Commission or its staff from time to time.

     Section 1.2. Interpretation. When used in this Reimbursement Agreement, unless a
contrary intention appears: (a) a term has the meaning assigned to it; (b) an accounting term not
otherwise defined has the meaning assigned to it in accordance with GAAP; (c) “or” is not
exclusive; (d) “including” means including without limitation; (e) words in the singular include
the plural and words in the plural include the singular; (f) any agreement, instrument or statute
defined or referred to herein or in any instrument or certificate delivered in connection herewith
means such agreement, instrument or statute as from time to time amended, modified or supplemented
and includes (in the case of agreements or instruments) references to all attachments thereto and
instruments incorporated therein; (g) references to a Person are also to its successors and
permitted assigns; (h) the words “hereof”, “herein” and “hereunder” and words of similar import
when used in this Reimbursement Agreement shall refer to this Reimbursement Agreement as a whole
and not to any particular provision hereof; (i) references contained herein to Section, Schedule
and Exhibit, as applicable, are references to Sections, Schedules and Exhibits in this
Reimbursement Agreement unless otherwise specified; (j) references to “writing” include printing,
typing, lithography and other means of reproducing words in a visible form; and (k) the term
“proceeds” has the meaning set forth in the applicable UCC.

ARTICLE II

LETTER OF CREDIT

     Section 2.1. Issuance. The Letter of Credit Issuer hereby agrees, upon the request of
the Servicer on the terms and subject to the conditions set forth in the Credit Agreement, to issue
to the Indenture Trustee the Letter of Credit. If a successor Indenture Trustee is appointed,
promptly following the appointment of such successor Indenture Trustee pursuant to the terms of the
Indenture and upon receipt of an Instruction to Transfer substantially in the form of Annex C to
the Letter of Credit, the Letter of Credit Issuer shall deliver to such successor Indenture
Trustee, in exchange for the outstanding Letter of Credit held by the predecessor Indenture
Trustee, a substitute Letter of Credit substantially in the form of Exhibit A hereto, having terms
identical to the then outstanding Letter of Credit but in favor of such successor Indenture
Trustee.

     Section 2.2. Terms and Payments.

          (a) Except as expressly provided herein or in any Transaction Document, all terms and
conditions with respect to the payment of the Repayment Amount and any other fees, interest and
expenses with respect to the Letter of Credit, shall not be determined in accordance with the
Transaction Documents, but shall be determined in accordance with the Letter of Credit and the
Credit Agreement.

          (b) Without the prior written consent of the Letter of Credit Issuer, at no time while the
Issuer is subject to the reporting requirements of the Exchange Act will the face amount of the
Letter of Credit be modified to exceed an amount equal to 9.50% of the Cash

3

 

Flow, provided that the foregoing shall not reduce or modify the Letter of Credit Issuer’s
obligations under the Letter of Credit.

          (c) To the extent the face amount of the Letter of Credit would exceed an amount equal to
9.50% of the Cash Flow, the Issuer and the Servicer shall (i) arrange for the issuance of an
additional letter or letters of credit and/or (ii) provide for deposits to be made to the Reserve
Account from Available Funds (as defined in the Sale and Servicing Agreement), other than any draws
on the Letter of Credit and otherwise to the extent available, so that at all times the Letter of
Credit Amount shall not exceed 9.50% of the Cash Flow.

     Section 2.3. Limited Recourse; Obligations Absolute.

          (a) Subject to Sections 2.3(b), (c) and (d) hereof, the obligation to repay any Repayment
Amount shall be without recourse to the Seller (or any Person acting on behalf of the Seller), the
Issuer, the Servicer, the Insurer, the Indenture Trustee or any holder of Notes or any Affiliate,
officer or director of any of them and the obligation to pay any Repayment Amount shall be limited
solely to the application of:

     (i) Available Funds (as defined in the Credit Agreement) and other amounts
payable in respect thereof required to be distributed to the Lenders, and only to
the extent that such amounts are available pursuant to the Credit Agreement for
distribution to the Lenders with respect to the Letter of Credit; and

     (ii) any remaining funds of the Issuer, after payment in full of the debt and
all other obligations of the Issuer, incurred in accordance with the Transaction
Documents.

          (b) In the event of a failure by the Servicer to make any payments, deposits, transfers or
give any instructions to transfer, in each case as required by the Sale and Servicing Agreement,
which failure directly results in (i) a withdrawal from the Reserve Account or a drawing under the
Letter of Credit or (ii) a decreased amount required to be distributed to the Letter of Credit
Issuer under the Credit Agreement, the obligation to repay the portion of the Repayment Amount
resulting from such breach shall be a full recourse obligation of the Servicer, together with
interest on such amount at the Base Rate in effect from time to time plus 2.00% from the date such
payment, deposit or transfer was required to be received by the Issuer or, in the case of the
failure to furnish required instructions resulting in a withdrawal from the Reserve Account or a
drawing under the Letter of Credit, from the date of such withdrawal or drawing. Amounts payable
hereunder by the Servicer shall not include amounts that have the effect of recourse or which
constitute advances by the Servicer due to credit or payment problems of the related obligors;
provided that the foregoing shall not affect any obligations the Servicer may otherwise have
pursuant to the Credit Agreement.

          (c) The obligations of (i) the Seller and the Servicer under this Section are solely corporate
obligations of the Seller and the Servicer and (ii) the Issuer under this Section are solely trust
obligations of the Issuer, and shall be payable by such Person solely as provided in this Section.
No recourse shall be had for the payment of any amount owing hereunder or any other obligation of,
or claim against, the Seller or the Issuer or the Servicer, as the case may be,

4

 

arising out of or based upon Section 2.3 against any stockholder, employee, officer, agent,
director or authorized person of the Seller, the Issuer or the Servicer.

          (d) Nothing contained in this Section shall relieve the Seller (or any Person acting on behalf
of the Seller), the Issuer, the Servicer, the Insurer, the Indenture Trustee or any holder of Notes
or any Affiliate, officer or director of any of them, of any liability such Person might otherwise
have as a result of actions or omissions taken by them resulting from fraud, gross negligence or
willful misconduct.

          (e) The provisions of Section 2.3(a) shall constitute a subordination agreement for purposes
of Section 510(a) of the Bankruptcy Code. No amount owing by the Seller or the Issuer, as the case
may be, hereunder, in excess of the liabilities that it is required to pay in accordance with
Section 2.3(a) shall constitute a “claim” (as defined in Section 101(5) of the Bankruptcy Code)
against it.

          (f) The Letter of Credit Issuer agrees that it shall have no right of setoff or banker’s lien
against (i) the Seller, the Issuer, the Indenture Trustee, the Servicer, the Insurer, any holder of
a Note or any Affiliate, officer or director of any of them, (ii) the Trust Estate or (iii) any
amounts on deposit in any Trust Account (other than the Residual Interest Account, to the extent
applicable), in any such case with respect to the reimbursement of the Repayment Amount or with
respect to any amount owing to the Letter of Credit Issuer arising hereunder or under the Letter of
Credit.

ARTICLE III

REPRESENTATIONS, WARRANTIES AND COVENANTS

     Section 3.1. Representations and Warranties of the Issuer, the Seller and the
Servicer. To induce the Letter of Credit Issuer to enter into this Reimbursement Agreement and
to issue the Letter of Credit, each of the Issuer, the Seller and the Servicer hereby represents
and warrants, each as to itself only (which representations and warranties shall be deemed made on
the date of issuance of the Letter of Credit), to the Letter of Credit Issuer that:

          (a) Due Organization and Qualification. Such Person is: (i) duly formed and validly
existing as a Delaware statutory trust, Illinois corporation or Delaware limited liability company,
respectively, and is in good standing under the laws of the State of Delaware or Illinois, as
applicable; and (ii) duly qualified to do business and is in good standing in each jurisdiction in
which the failure to be so qualified would have a material adverse effect upon such Person or their
ability to perform their obligations under this Reimbursement Agreement and any Transaction
Document to which such Person is a party.

          (b) Power and Authority. Such Person has all power and authority and has obtained all
licenses, permits, charters, registrations and approvals, necessary: (i) for the conduct of its
business as presently conducted; and (ii) to execute, deliver and perform its obligations under
this Reimbursement Agreement and each Transaction Document to which such Person is a party.

5

 

          (c) Approval. The execution, delivery and performance of this Reimbursement Agreement
have been duly authorized by all necessary action on the part of such Person.

          (d) Valid and Binding Obligation. This Reimbursement Agreement constitutes a legal,
valid and binding obligation of such Person, enforceable in accordance with its terms, except as
such enforceability may be limited by: (i) bankruptcy, insolvency, reorganization, receivership or
other similar laws affecting the enforcement of creditors’ rights generally; and (ii) general
equitable principles, regardless of whether such enforceability shall be considered a proceeding in
equity or at law.

          (e) Noncontravention. The consummation of the transactions contemplated by this
Reimbursement Agreement and the fulfillment of the terms hereof shall not: (i) conflict with,
result in any breach of any of the terms and provisions of, nor constitute a default (nor an event
which, with the giving of notice or passage of time, or both, would constitute a default) under the
organizational documents of such Person, or any indenture, agreement or other instrument to which
such Person is a party or by which it shall be bound; (ii) 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 the Indenture); or (iii) violate any law or any order, rule, or regulation
applicable to such Person of any court or of any federal or state regulatory body, administrative
agency, or other governmental instrumentality having jurisdiction over such Person or its
properties.

          (f) No Consents. No consent, license, approval or authorization from, or
registration, or declaration with, any governmental authority, bureau or agency, nor any consent,
approval, waiver or notification of any creditor, lessor or other non-governmental person, is
required in connection with the execution, delivery and performance by the such Person of this
Reimbursement Agreement, except (in each case) such as have been obtained and are in full force and
effect.

          (g) Pending Litigation or Other Proceeding. To the knowledge of such Person, there
are no proceedings or investigations pending, or threatened, before any court, regulatory body,
administrative agency, or other governmental instrumentality having jurisdiction over such Person
or its properties: (i) asserting the invalidity of this Reimbursement Agreement or any other
Transaction Document to which such Person is a party; or (ii) seeking any determination or ruling
that might materially and adversely affect the validity or enforceability of, this Reimbursement
Agreement or any other Transaction Document to which such Person is a party.

     Section 3.2. Affirmative Covenants.

          (a) Compliance with Transaction Documents. Each of the Issuer, the Seller and the
Servicer agrees for itself, that it will comply with all terms and conditions applicable to such
Person contained in this Reimbursement Agreement and each other Transaction Document to which such
Person is a party.

6

 

          (b) Amendments. Each of the Issuer, the Seller and the Servicer will give the Letter
of Credit Issuer prior written notice of any proposed amendment to or modification of any
Transaction Document. Unless the Letter of Credit Issuer shall have previously approved in writing
the form of such amendment or modification, none of the Issuer, the Seller or the Servicer will
cause or permit to become effective any amendment to or modification of any the Transaction
Document if such amendment or modification would materially and adversely affect the Letter of
Credit Issuer, including any amendment or modification that: (i) reduces the amount or changes the
timing of payments to the Letter of Credit Issuer or any Certificateholder; (ii) impairs or
adversely affects the value of the Collateral; (iii) permits the creation of any Lien ranking prior
to or on a parity with the Lien of the Indenture Trustee with respect to any of the Collateral; or
(iv) terminates the Lien of the Indenture Trustee with respect to the Collateral.

          (c) Optional Repurchase. Neither the Seller nor the Servicer will effect any optional
purchase of the Contracts pursuant to Article 8 of the Sale and Servicing Agreement, unless: (i)
the Letter of Credit Issuer has been, or simultaneously therewith will be, repaid the Repayment
Amount in full; and (ii) no amounts are owing to the Letter of Credit Issuer hereunder or under the
Credit Agreement with respect to the Letter of Credit.

          (d) Access to Records; Discussions with Officers and Accountants. The Issuer, the
Seller and the Servicer shall each, upon the reasonable request of the Letter of Credit Issuer,
permit any authorized representative or agent of the Letter of Credit Issuer at reasonable times
to: (i) inspect the books and records of the Issuer, the Seller or the Servicer that may relate to
the Notes, the Certificates and the obligations of such Person under this Reimbursement Agreement
and the other Transaction Documents to which such Person is a party; and (ii) discuss the affairs,
finances and accounts of such Person with any of its respective officers, directors and
representatives, including its independent certified public accountants; provided, however, that,
so long as no Trigger Event or Event of Default has occurred and is continuing, the Letter of
Credit Issuer shall not inspect such books and records more frequently than once every six months.

          (e) Letter of Credit Amount. Each of the Seller and the Servicer shall promptly
notify the Letter of Credit Issuer if the Letter of Credit Issuer is liable or contingently liable
to provide payments under the Letter of Credit representing more than 9.0% of the Cash Flow. The
Seller and the Servicer shall use commercially reasonable efforts to give notification pursuant to
this Section not fewer than 30 days prior to the date on which the Letter of Credit Issuer is
anticipated to be liable or contingently liable to provide payments under the Letter of Credit
representing more than 9.0% of the Cash Flow.

     Section 3.3. No Petition.

          (a) The Letter of Credit Issuer hereby covenants and agrees that prior to the date which is
one year and one day after the payment in full of the latest maturing:

     (1) Note and the expiration of the Note Policy and the Swap Policy, it will not
institute against, or join with any other Person in instituting against, the Issuer;
and

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     (2) security issued by any securitization trust created by the Seller, it will
not institute against, or join with any other Person in instituting against, the
Seller,

any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any federal or state bankruptcy or similar law; provided, however, that nothing
in this Section shall constitute a waiver of any claim for reimbursement or other payment from the
Seller or the Issuer pursuant to this Reimbursement Agreement in any such proceedings or limit in
any manner any of the rights of the Letter of Credit Issuer under the Credit Agreement. The
provisions of this Section shall survive the termination of this Reimbursement Agreement and the
replacement or removal of the Letter of Credit Issuer.

          (b) The Servicer hereby covenants and agrees that prior to the date which is one year and one
day after the payment in full of the latest maturing:

     (1) Note and the expiration of the Note Policy and the Swap Policy, it will not
institute against, or join with any other Person in instituting against, the Issuer;
and

     (2) security issued by any securitization trust created by the Seller, it will
not institute against, or join with any other Person in instituting against, the
Seller,

any bankruptcy, reorganization, arrangement, conservatorship, receivership, insolvency or
liquidation proceedings, or other proceedings under any federal or state bankruptcy, receivership
or similar law, in connection with any amounts due the Servicer (or any Affiliate or parent
thereof) under any Transaction Document or otherwise without the prior written consent of the
Letter of Credit Issuer. The provisions of this Section shall survive termination of this
Reimbursement Agreement.

ARTICLE IV

MISCELLANEOUS

     Section 4.1. Third-Party Beneficiary. The Insurer is an intended third party
beneficiary of this Reimbursement Agreement.

     Section 4.2. Payments. All payments to the Letter of Credit Issuer hereunder shall be
made in lawful currency of the United States and in immediately available funds prior to 11:00 a.m.
(New York City time) on the date such payment is due by wire transfer to the Letter of Credit
Issuer, to Wachovia Bank, National Association, ABA # 053 000 219, Account Number 01459160000192,
Account Name: World Banking Group, or to such other office or account maintained by the Letter of
Credit Issuer as the Letter of Credit Issuer may direct.

     Section 4.3. Notices. All notices, requests and other communications to any party
hereunder shall be in writing (including bank wire, facsimile transmission or similar writing) and
addressed, delivered or transmitted to such party at its address or telecopy number set forth
below, or at such other address or telecopy number, as the case may be, as such party may

8

 

hereafter specify for the purpose by notice to the other party (or as provided in the
Transaction Documents). Each such notice, request or communication shall be effective when
received by the party to which it is addressed.

If to the Servicer:

Santander Consumer USA Inc.

8585 North Stemmons Freeway

Dallas, Texas 75247

Attention: Chief Financial Officer

Telephone: 214-237-3530

Telecopier: 214-630-0828

If to the Seller:

Santander Drive Auto Receivables LLC

8585 North Stemmons Freeway

Dallas, Texas 75247

Attention: Chief Financial Officer

Telephone: 214-237-3530

Telecopier: 214 237 3570

If to the Issuer:

Santander Drive Auto Receivables Trust 2007-1

c/o U.S. Bank Trust National Association,

as Owner Trustee

Attn: Sterling C. Correia

300 Delaware Avenue

9th Floor

Wilmington, Delaware 19801

Telephone: 302-576-3702

Telecopier: 302-576 3717

sterling.correia@usbank.com

If to the Indenture Trustee:

Wells Fargo Bank, National Association

MAC N9311-161

Sixth Street & Marquette Avenue

Minneapolis, MN 55479

Attention: Corporate Trust Services- Asset Backed Administration

Telephone: 612-667-8058

Telecopier: 612-667-3539

If to the Letter of Credit Issuer:

Wachovia Bank, National Association

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One Wachovia Center

301 S. College St.

Charlotte, NC 28288-0610

Attention: Curt Sidden

Telecopier: (704) 383-9106

Telephone: (704) 715-6030

If to the Insurer:

Financial Guaranty Insurance Company

125 Park Avenue

New York, NY 10017

Attention: Structured Finance Surveillance —

   Santander Drive 2007-1

Telecopier: (212) 312-3220

Telephone: (800) 352-0001

Email: SFSurveillance@fgic.com

If to the Rating Agencies:

Standard & Poor’s Ratings Services

55 Water Street

New York, New York 10041

Asset Backed Surveillance Department

Moody’s Investors Service, Inc.

99 Church Street

New York, New York 10007

ABS Monitoring Department

     Section 4.4. Amendments. No provision of this Reimbursement Agreement shall be
waived, amended or supplemented except (i) by a written instrument executed by the parties hereto
(ii) with the prior written consent of the Insurer and (iii) following prior written notice to each
Rating Agency.

     Section 4.5. Governing Law; Jurisdiction. THIS REIMBURSEMENT AGREEMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT
OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW) AND THE OBLIGATIONS,
RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Section 4.6. Waiver of Jury Trial. EACH PARTY HERETO HEREBY KNOWINGLY, VOLUNTARILY
AND INTENTIONALLY WAIVES ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS REIMBURSEMENT AGREEMENT OR ANY
OTHER RELATED DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR
WRITTEN)

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OR ACTIONS OF ANY PARTY HERETO IN CONNECTION HEREWITH OR THEREWITH. EACH OF THE SELLER, THE
MASTER SERVICER AND THE ISSUER ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT
CONSIDERATION FOR THIS PROVISION AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE LETTER OF
CREDIT ISSUER’S ENTERING INTO THIS REIMBURSEMENT AGREEMENT.

     Section 4.7. Waivers; Remedies Cumulative. Neither any failure nor any delay on the
part of the Letter of Credit Issuer in exercising any right, power or privilege hereunder or under
the Letter of Credit shall operate as a waiver thereof, nor shall a single or partial exercise
thereof preclude any other or further exercise or the exercise of any other right, power or
privilege. The remedies herein provided are cumulative and not exclusive of any remedies provided
by law.

     Section 4.8. Severability. Any provision of this Reimbursement Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, 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 4.9. Term. This Reimbursement Agreement shall remain in full force and effect
until the payment of the Repayment Amount, notwithstanding the earlier termination of the Letter of
Credit.

     Section 4.10. Successors and Assigns.

          (a) This Reimbursement Agreement shall be binding upon the parties hereto and their respective
successors and assigns; provided, however, that none of the Seller, the Servicer or the Issuer may
transfer or assign any of its obligations, rights, or interests hereunder without (i) the prior
written consent of the Letter of Credit Issuer and Financial Guaranty Insurance Company (in its
capacity as issuer of the Note Policy) (the “Insurer”) and (ii) prior written notice to each Rating
Agency.

          (b) The Letter of Credit Issuer may at any time:

     (1) assign all or a portion of its obligations under the Letter of Credit and
its rights under this Reimbursement Agreement to an Eligible Letter of Credit
Issuer; provided, however, that (A) the Rating Agency Condition shall have been
satisfied with respect to such assignment, (B) the Insurer shall have consented in
writing to such assignment (which consent shall not be unreasonably withheld), (C)
such assignment shall be for an amount at least equal to $1,000,000 and (D) such
Eligible Letter of Credit Issuer agrees in writing to be bound by Section 4.17
hereof. It is understood and agreed that in connection with partial assignments by
the Letter of Credit Issuer, such reasonable amendments to this Reimbursement
Agreement as the Letter of Credit Issuer may request shall be entered into by the
other parties hereto to accommodate such assignments, including without limitation,
if requested, customary “agency” and “syndication” provisions; and

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     (2) grant participations in minimum amounts of $1,000,000 to any other Person,
in all or part of its obligations under the Letter of Credit and its rights under
this Reimbursement Agreement (it being understood and agreed that no other party
hereto shall have any obligation to give notices to any such participant, that such
participation will not in any way reduce the Letter of Credit Issuer’s commitment to
make disbursements under the Letter of Credit, and that such participation shall not
increase the obligations (including with respect to costs and expenses) of any other
party hereunder); provided that the Letter of Credit Issuer shall be entitled to
receive any increased costs or indemnities payable hereunder incurred by the Letter
of Credit Issuer or such participant to the extent not in excess of such amounts
calculated as if there were no participation.

     Section 4.11. Survival. All representations and warranties contained herein or made
in writing by any of the Seller, the Servicer or the Issuer in connection herewith shall survive
the execution and delivery of this Reimbursement Agreement, regardless of any investigation made by
the Letter of Credit Issuer or on its behalf and shall continue so long as and until such time as
all obligations hereunder and under the Transaction Documents and all Indebtedness under the Notes
shall have been paid in full. The obligations of each of the Seller, the Servicer and the Issuer
under this Section and Sections 3.3, 4.1, 4.5 — 4.8, 4.13 and 4.17(c) shall in each case survive
any termination of this Reimbursement Agreement, the payment in full of all obligations hereunder
and the termination of the Letter of Credit.

     Section 4.12. Counterparts. This Reimbursement Agreement may be executed in any
number of counterparts, and by the different parties hereto on the same or separate counterparts,
each of which counterparts, when so executed and delivered, shall be deemed to be an original and
all of which counterparts, taken together, shall constitute one and the same agreement.

     Section 4.13. Further Assurances. Each of the Seller, the Servicer, the Issuer and
the Indenture Trustee agrees to do such further acts and things and to execute and deliver to the
Letter of Credit Issuer such additional assignments, agreements, powers and instruments as are
reasonably required by the Letter of Credit Issuer to carry into effect the purposes of this
Reimbursement Agreement and the Transaction Documents or to better assure and confirm to the Letter
of Credit Issuer its rights, powers and remedies hereunder.

     Section 4.14. Headings. Section headings in this Reimbursement Agreement are included
herein for convenience of reference only and shall not constitute a part of this Reimbursement
Agreement for any other purpose.

     Section 4.15. Limited Liability of U.S. Bank Trust National Association. It is
expressly understood and agreed by the parties hereto that: (a) this Reimbursement Agreement is
executed and delivered by U.S. Bank Trust National Association not individually or personally but
solely as Owner Trustee on behalf of the Issuer; (b) each of the representations, undertakings and
agreements herein made on the part of the Issuer is made and intended not as personal
representations, undertakings and agreements by U.S. Bank Trust National Association, but are made
and intended for the purpose of binding only the Issuer; (c) nothing herein contained shall be
construed as creating any liability on U.S. Bank Trust National Association, individually or
personally, to perform any covenant of the Issuer either expressed or implied contained herein,

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all such liability, if any, being expressly waived by the parties hereto and by any person
claiming by, through or under such parties; and (d) under no circumstances shall U.S. Bank Trust
National Association be personally liable for the payment of any indebtedness or expenses of the
Issuer or be liable for the breach or failure of any obligation, representation, warranty or
covenant made or undertaken by the Issuer under this Reimbursement Agreement.

     Section 4.16. Non-Confidential Information. Notwithstanding any other statement
herein, the Issuer, the Indenture Trustee, the Seller, the Servicer and the Letter of Credit Issuer
each understands that it (and each of its employees, representatives or other agents) may disclose
to any and all persons, without limitations of any kind, the tax treatment and tax structure of the
transaction contemplated herein; provided, however, that it (and any of its employees,
representatives or other agents) will not disclose any information that is not necessary to
understand the tax treatment and tax structure of such transaction (including the identity of any
of the parties to the transaction and any information that could lead another to determine the
identity of any such parties), or any other information to the extent that such disclosure could
result in a violation of any federal or state securities law.

     Section 4.17. Regulation AB Compliance.

          (a) The Letter of Credit Issuer agrees to comply with commercially reasonable requests of the
Seller for the delivery of such information relating to the Letter of Credit Issuer as may be
necessary for the Seller to comply with Item 1114 of Regulation AB as it relates to the Letter of
Credit Issuer. The Letter of Credit Issuer agrees that such information may be incorporated by
reference or attached as an exhibit to any Exchange Act Report to the extent required under
Regulation AB or Item 7 on Form 10-D.

          (b) As of the date that any required information is provided to the Seller or the Issuer
pursuant to Section 4.17(a) to be attached as an exhibit to any Exchange Act Report, such
information will comply in all material respects with the requirements of Item 1114 of Regulation
AB.

          (c) Notwithstanding anything to the contrary, the Letter of Credit Issuer’s liability in the
case of a breach of this Section 4.17 which has the effect of imposing liability on any party
entitled to indemnification under this Reimbursement Agreement under Regulation AB, will be limited
to the actual damages incurred by Santander Consumer and the Seller as a direct result of a
determination by the Commission that the Seller is no longer eligible to file registration
statements on Form S-3, such determination being based solely on the Letter of Credit Issuer’s
breach of this Section 4.17.

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

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL 

ASSOCIATION, as Letter of Credit Issuer

 	 
	 	By:  	/s/ Justin Zakocs
 	 
	 	 	Name:  	Justin Zakocs 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	 	SANTANDER DRIVE AUTO RECEIVABLES

TRUST 2007-1, as Issuer
	 
	 	 	 	 
	 

	 	By:
	 	U.S. BANK TRUST NATIONAL

ASSOCIATION, not in its individual capacity,

but solely in its capacity as Owner Trustee 

under the Trust Agreement

	 	 	 	 	 
	 	 	 
	 	By:  	                                              /s/ Sterling C. Correia
 	 
	 	 	Name:  	Sterling C. Correia 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	SANTANDER DRIVE AUTO RECEIVABLES

LLC, as Seller

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

Signature
Page to Letter of Credit Reimbursement Agreement

 

 

	 	 	 	 	 
	 	SANTANDER CONSUMER USA INC., as 

Servicer

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

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL

ASSOCIATION, as Indenture Trustee

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

Signature Page to Letter of Credit Reimbursement Agreement

 

 

EXHIBIT A

TO THE LETTER OF CREDIT REIMBURSEMENT AGREEMENT

A-1

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