Document:

exv4w2

 

Exhibit 4.2

 

INTERIM TRUST AGREEMENT

between

SLM FUNDING LLC,

as the Depositor

and

CHASE BANK USA,

NATIONAL ASSOCIATION,

not in its individual capacity but solely

as the Interim Trustee

Dated as of September 28, 2006

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I Definitions and Usage
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II Appointment of Interim Trustee
	 	 	1	 
	SECTION 2.1 Appointment of Interim Trustee
	 	 	1	 
	SECTION 2.2 Declaration of Trust
	 	 	2	 
	SECTION 2.3 Title to Interim Trust Loans
	 	 	2	 
	 
	 	 	 	 
	ARTICLE III Representations and Warranties of the Depositor
	 	 	2	 
	 
	 	 	 	 
	ARTICLE IV Authority and Duties of Interim Trustee
	 	 	3	 
	SECTION 4.1 General Authority
	 	 	3	 
	SECTION 4.2 General Duties
	 	 	3	 
	SECTION 4.3 No Duties Except as Specified in this Agreement
	 	 	3	 
	SECTION 4.4 No Action Except Under Specified Documents
	 	 	3	 
	SECTION 4.5 Restrictions
	 	 	3	 
	 
	 	 	 	 
	ARTICLE V Concerning the Interim Trustee
	 	 	3	 
	SECTION 5.1 Acceptance of Trust and Duties
	 	 	3	 
	SECTION 5.2 Representations and Warranties
	 	 	4	 
	SECTION 5.3 Not Acting in Individual Capacity
	 	 	4	 
	SECTION 5.4 Interim Trustee Not Liable for the Interim Trust Loans
	 	 	5	 
	 
	 	 	 	 
	ARTICLE VI Compensation of Interim Trustee
	 	 	5	 
	 
	 	 	 	 
	ARTICLE VII Termination of Interim Trust Agreement
	 	 	5	 
	 
	 	 	 	 
	ARTICLE VIII SUCCESSOR INTERIM TRUSTEES
	 	 	5	 
	SECTION 8.1 Eligibility Requirements for Interim Trustee
	 	 	5	 
	SECTION 8.2 Resignation or Removal of Interim Trustee
	 	 	6	 
	SECTION 8.3 Successor Interim Trustee
	 	 	6	 
	SECTION 8.4 Merger or Consolidation of Interim Trustee
	 	 	7	 
	 
	 	 	 	 
	ARTICLE IX Miscellaneous
	 	 	7	 
	SECTION 9.1 Supplements and Amendments
	 	 	7	 
	SECTION 9.2 Notices
	 	 	8	 
	SECTION 9.3 Severability
	 	 	8	 
	SECTION 9.4 Separate Counterparts
	 	 	8	 
	SECTION 9.5 Successors and Assigns
	 	 	8	 
	SECTION 9.6 Headings
	 	 	8	 
	SECTION 9.7 Governing Law
	 	 	8	 

 i

 

 

INTERIM TRUST AGREEMENT

     INTERIM TRUST AGREEMENT (the “Agreement”), dated as of September 28, 2006, between SLM FUNDING
LLC, a Delaware limited liability company (the “Depositor”), and CHASE BANK USA, NATIONAL
ASSOCIATION, a national banking association, not in its individual capacity but solely as Interim
Trustee (the “Interim Trustee”).

     WHEREAS, the Depositor is a limited liability company established for the purpose of
purchasing Loans from SLM Education Credit Finance Corporation (“SLM ECFC”) and, among others, VG
Funding, LLC (“VG Funding,” and together with SLM ECFC, the “Sellers”) for immediate resale to
special purpose trusts established for the purpose of financing the purchase of such Loans;

     WHEREAS, on the Closing Date, the Depositor will enter into a separate Purchase Agreement with
each of the Sellers, and a Sale Agreement with SLM Private Credit Student Loan Trust 2006-C for the
purpose of effecting the purchase and resale of the Interim Trust Loans (the “Sale Agreements”);
and

     WHEREAS, pursuant to the terms of the Sale Agreement, the Depositor may be required, under
certain circumstances, to repurchase some of the Interim Trust Loans;

     NOW, THEREFORE, the Depositor and the Interim Trustee hereby agree as follows:

ARTICLE I

Definitions and Usage

     Except as otherwise specified herein or as the context may otherwise require, capitalized
terms used but not otherwise defined herein are defined in Appendix A to the Indenture, dated as of
September 1, 2006, between the Trustee on behalf of the Trust, the Trust and the Indenture Trustee,
as may be amended or supplemented from time to time.

ARTICLE II

Appointment of Interim Trustee

     SECTION 2.1 Appointment of Interim Trustee. The Depositor hereby appoints the Interim
Trustee, effective as of the date hereof, as trustee, to have all the rights, powers and duties set
forth herein, including, without limitation:

	 	a.	 	to hold legal title to the Interim Trust Loans on behalf and for the benefit of
the Depositor;

1

 

	 	b.	 	to enter into and perform its obligations as the Interim Trustee under this
Agreement, and the Sale Agreements ; and
	 
	 	c.	 	to engage in those activities, including entering into agreements, that are
necessary, suitable or convenient to accomplish the foregoing or are incidental thereto
or connected therewith.

     SECTION 2.2 Declaration of Trust. The Interim Trustee hereby declares that it will
hold the Interim Trust Loans in trust upon and subject to the conditions set forth herein for the
use and benefit of the Depositor, subject to the obligations of the Interim Trustee under the Sale
Agreements. Effective as of the date hereof, the Interim Trustee shall have all rights, powers and
duties set forth herein with respect to accomplishing the purposes of this Agreement.

     SECTION 2.3 Title to Interim Trust Loans. Legal title to all of the Interim Trust
Loans shall be vested at all times in the Interim Trustee on behalf of and for the benefit of the
Depositor.

ARTICLE III

Representations and Warranties of the Depositor

	 	 	 	The Depositor hereby represents and warrants to the Interim Trustee that:
	 
	 	1.	 	It is duly organized and validly existing as a Delaware limited liability
company in good standing under the laws of the State of Delaware, with power and
authority to own its properties and to conduct its business as such properties are
currently owned and such business is presently conducted.
	 
	 	2.	 	It has all necessary power and authority to execute and deliver this Agreement
and to carry out its terms; and the execution, delivery and performance of this
Agreement has been duly authorized by all necessary action.
	 
	 	3.	 	This Agreement constitutes a legal, valid and binding obligation of the
Depositor enforceable in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization and similar laws relating to creditors’ rights generally and
subject to general principles of equity.
	 
	 	4.	 	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 certificate of formation or limited liability company
operating agreement, in effect as of the date hereof, of the Depositor, or any
indenture, agreement or other instrument to which the Depositor is a party or by
which it is bound; nor 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

2

 

	 	 	 	instrument (other than as contemplated by the Basic Documents); nor violate any law
or any order, rule or regulation applicable to the Depositor of any court or of any
Federal or state regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over the Depositor or its properties.

ARTICLE IV

Authority and Duties of Interim Trustee

     SECTION 4.1 General Authority. The Interim Trustee is authorized and directed to
execute and deliver the Sale Agreements and this Agreement and each certificate or other document
attached as an exhibit to or contemplated by such agreements, in each case, in such form as the
Depositor shall approve as evidenced conclusively by the Interim Trustee’s execution thereof. The
Interim Trustee is also authorized and directed on behalf and for the benefit of the Depositor to
acquire and hold legal title to the Interim Trust Loans and to take all actions required of the
Interim Trustee pursuant to the Sale Agreements and this Agreement.

     SECTION 4.2 General Duties. It shall be the duty of the Interim Trustee to discharge
(or cause to be discharged) all its responsibilities as the Interim Trustee pursuant to the terms
of the Sale Agreements and this Agreement.

     SECTION 4.3 No Duties Except as Specified in this Agreement. The Interim Trustee
shall not have any duty or obligation to manage, make any payment with respect to, register,
record, sell, service, dispose of or otherwise deal with the Interim Trust Loans, or to otherwise
take or refrain from taking any action under, or in connection with, any document contemplated
hereby to which the Interim Trustee is a party, except as expressly provided by the terms of the
Sale Agreements or this Agreement; and no implied duties or obligations shall be read into this
Agreement or the Sale Agreements against the Interim Trustee.

     SECTION 4.4 No Action Except Under Specified Documents. The Interim Trustee shall not
otherwise deal with the Interim Trust Loans except in accordance with the powers granted to and the
authority conferred upon the Interim Trustee pursuant to this Agreement and the Sale Agreements.

     SECTION 4.5 Restrictions. The Interim Trustee shall not take any action that is inconsistent with the purposes of the
Trust set forth in the Basic Documents.

ARTICLE V

Concerning the Interim Trustee

     SECTION 5.1 Acceptance of Trust and Duties. The Interim Trustee accepts the trust
hereby created and agrees to perform its duties hereunder with respect to such trust but only upon
the terms of this Agreement. The Interim Trustee shall not be answerable or accountable

3

 

hereunder
or under the Sale Agreements under any circumstances, except (i) for its own willful misconduct or
negligence or (ii) in the case of the inaccuracy of any representation or warranty contained in
Section 5.2 below expressly made by the Interim Trustee. In particular, but not by way of
limitation (and subject to the exceptions set forth in the preceding sentence):

	 	1.	 	The Interim Trustee shall not be liable for any error of judgment made by a
responsible officer of the Interim Trustee.
	 
	 	2.	 	No provision of this Agreement or the Sale Agreements shall require the Interim
Trustee to expend or risk funds or otherwise incur any financial liability in the
performance of any of its rights or powers hereunder or under the Sale Agreements, if
the Interim Trustee shall have reasonable grounds for believing that repayment of such
funds or adequate indemnity against such risk or liability is not reasonably assured or
provided to it.
	 
	 	3.	 	The Interim Trustee shall not be responsible for or in respect of the validity
or sufficiency of this Agreement or for the due execution hereof by the Depositor or
for the form, character, genuineness, sufficiency, value or validity of any of the
Interim Trust Loans or for or in respect of the validity or sufficiency of the Sale
Agreements.

     SECTION 5.2 Representations and Warranties. The Interim Trustee hereby represents and
warrants to the Depositor that:

	 	1.	 	It is duly organized and validly existing in good standing under the laws of
its governing jurisdiction and has an office located within the State of Delaware, at
which it will act as trustee for the Trust. It has all requisite power and authority to
execute, deliver and perform its obligations under the Sale Agreements and this
Agreement.
	 
	 	2.	 	It has taken all action necessary to authorize the execution and delivery by it
of the Sale Agreements and this Agreement, and the Sale Agreements and this
Agreement have been executed and delivered by one of its officers who is duly
authorized to execute and deliver the same on its behalf.
	 
	 	3.	 	Neither the execution nor the delivery by it of the Sale Agreements or this
Agreement, nor the consummation by it of the transactions contemplated thereby or
hereby nor compliance by it with any of the terms or provisions thereof or hereof will
contravene any Federal or Delaware state law, governmental rule or regulation governing
the banking or trust powers of the Interim Trustee or any judgment or order binding on
it, or constitute any default under its charter documents or by-laws or any indenture,
mortgage, contract, agreement or instrument to which it is a party or by which any of
its properties may be bound.

     SECTION 5.3 Not Acting in Individual Capacity. Except as provided in this

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Article V,
in accepting the trust hereby created, Chase Bank USA, National Association acts solely as Interim
Trustee hereunder and not in its individual capacity.

     SECTION 5.4 Interim Trustee Not Liable for the Interim Trust Loans. The Interim
Trustee makes no representations as to the validity or sufficiency of this Agreement or the Sale
Agreements, or of any Interim Trust Loan or related documents. The Interim Trustee shall at no
time have any responsibility for or with respect to the sufficiency of the Interim Trust Loans; the
validity or completeness of the assignment to the Interim Trustee of legal title to any Interim
Trust Loan on behalf and for the benefit of the Depositor; the performance or enforcement (except
as expressly set forth in the Sale Agreements) of any Interim Trust Loan; the compliance by the
Depositor or the Servicer with any warranty or representation made under any Basic Document or in
any related document or the accuracy of any such warranty or representation or any action or
inaction of the Administrator, the Indenture Trustee or the Servicer or any subservicer taken in
the name of the Interim Trustee.

ARTICLE VI

Compensation of Interim Trustee

     The Interim Trustee shall receive as compensation for its services hereunder such fees as have
been separately agreed upon before the date hereof between the Depositor and the Interim Trustee,
and the Interim Trustee shall be entitled to be reimbursed by the Depositor, to the extent provided
in such separate agreement, for its other reasonable expenses hereunder.

ARTICLE VII

Termination of Interim Trust Agreement

     This Agreement (other than Article VI) and the trust created hereby shall terminate and be of
no further force or effect upon the earlier of (i) the termination of the Trust pursuant to Section
9.1 of the Trust Agreement and (ii) the expiration of 21 years from the death of the last survivor
of the descendants of Joseph P. Kennedy, the late Ambassador of the United States to the Court of
St. James’s, living on the date hereof.

ARTICLE VIII

Successor Interim Trustees

     SECTION 8.1 Eligibility Requirements for Interim Trustee. The Interim Trustee shall
at all times be a corporation or banking association being authorized to exercise corporate trust
powers and hold legal title to the Interim Trust Loans. In case at any time the Interim Trustee
shall cease to be eligible in accordance with the provisions of this Section, the Interim Trustee
shall resign immediately in the manner and with the effect specified in Section 8.2.

5

 

     SECTION 8.2 Resignation or Removal of Interim Trustee. The Interim Trustee may at any
time resign and be discharged from the trust hereby created by giving written notice thereof to the
Depositor. Upon receiving such notice of resignation, the Depositor shall promptly appoint a
successor Interim Trustee meeting the eligibility requirements of Section 8.1 by written
instrument, in duplicate, one copy of which instrument shall be delivered to the resigning Interim
Trustee and one copy to the successor Interim Trustee. If no successor Interim Trustee shall have
been so appointed and have accepted appointment within 30 days after the giving of such notice of
resignation, the resigning Interim Trustee may petition any court of competent jurisdiction for the
appointment of a successor Interim Trustee; provided, however, that such right to
appoint or to petition for the appointment of any such successor shall in no event relieve the
resigning Interim Trustee from any obligations otherwise imposed on it under this Agreement or the
Sale Agreements until such successor has in fact assumed such appointment.

     If at any time the Interim Trustee shall cease to be or shall be likely to cease to be
eligible in accordance with the provisions of Section 8.1 and shall fail to resign after written
request therefor by the Depositor, then the Depositor may remove the Interim Trustee. If the
Depositor shall remove the Interim Trustee under the authority of the immediately preceding
sentence, the Depositor shall promptly appoint a successor Interim Trustee by written instrument,
in duplicate, one copy of which instrument shall be delivered to the outgoing Interim Trustee so
removed and one copy to the successor Interim Trustee together with payment of all fees owed to the
outgoing Interim Trustee.

     Any resignation or removal of the Interim Trustee and appointment of a successor Interim
Trustee pursuant to any of the provisions of this Section shall not become effective until
acceptance of appointment by the successor Interim Trustee pursuant to Section 8.3 and payment of
all fees and expenses owed to the outgoing Interim Trustee.

     SECTION 8.3 Successor Interim Trustee. Any successor Interim Trustee appointed
pursuant to Section 8.2 shall execute, acknowledge and deliver to the Depositor and to its
predecessor Interim Trustee an instrument accepting such appointment under this Agreement, and
thereupon the resignation or removal of the predecessor Interim Trustee shall become effective and
such successor Interim Trustee, without any further act, deed or conveyance, shall become fully
vested with all the rights, powers, duties and obligations of its predecessor under this Agreement,
with like effect as if originally named as Interim Trustee. The predecessor Interim Trustee shall
upon payment of its fees and expenses deliver to the successor Interim Trustee all documents,
statements, moneys and properties held by it under this Agreement and shall assign, if permissible,
to the successor Interim Trustee any lender identification number obtained from the Department with
respect to the Interim Trust Loans; and the Depositor and the predecessor Interim Trustee shall
execute and deliver such instruments and do such other things as may reasonably be required for
fully and certainly vesting and confirming in the successor Interim Trustee all such rights,
powers, duties and obligations.

     No successor Interim Trustee shall accept such appointment as provided in this Section unless
at the time of such acceptance such successor Interim Trustee shall be eligible pursuant to Section
8.1.

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     SECTION 8.4 Merger or Consolidation of Interim Trustee. Any corporation into which
the Interim Trustee may be merged or converted or with which it may be consolidated, or any
corporation or banking association resulting from any merger, conversion or consolidation to which
the Interim Trustee shall be a party, or any corporation succeeding to all or substantially all the
corporate trust business of the Interim Trustee, shall, without the execution or filing of any
instrument or any further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding, be the successor of the Interim Trustee hereunder; provided that
such corporation or banking association shall be eligible pursuant to Section 8.1.

ARTICLE IX

Miscellaneous

     SECTION 9.1 Supplements and Amendments. This Agreement may be amended by the
Depositor and the Interim Trustee, with prior written notice to the Rating Agencies, without the
consent of any of the Noteholders or any
Excess Distribution Certificateholder, to cure any ambiguity, to correct or supplement any
provisions in this Agreement or for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions in this Agreement; provided, however,
that such action shall not, as evidenced by an Opinion of Counsel, adversely affect in any material
respect the interests of any Noteholder or any Excess Distribution Certificateholder.

     This Agreement may also be amended from time to time by the Depositor and the Interim Trustee,
with prior written notice to the Rating Agencies and with the consent of the Noteholders evidencing
not less than a majority of the Outstanding Amount of the Notes, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of this Agreement;
provided, however, that no such amendment shall reduce the aforesaid percentage of
the Outstanding Amount of the Notes required to consent to any such amendment, without the consent
of all the outstanding Noteholders.

     Promptly after the execution of any such amendment or consent, the Interim Trustee shall
furnish written notification of the substance of such amendment or consent to the Indenture Trustee
and each of the Rating Agencies.

     It shall not be necessary for the consent of the Noteholders pursuant to this Section to
approve the particular form of any proposed amendment or consent, but it shall be sufficient if
such consent shall approve the substance thereof. The manner of obtaining such consents and of
evidencing the authorization of the execution thereof shall be subject to such reasonable
requirements as the Interim Trustee may prescribe.

     Prior to the execution of any amendment to this Agreement, the Interim Trustee shall be
entitled to receive and rely upon an Opinion of Counsel stating that the execution of such
amendment is authorized or permitted by this Agreement. The Interim Trustee may, but shall

7

 

not be
obligated to, enter into any such amendment which affects the Interim Trustee’s own rights, duties
or immunities under this Agreement or otherwise.

     SECTION 9.2 Notices. Unless otherwise expressly specified or permitted by the terms
hereof, all notices shall be in writing and shall be deemed given upon receipt by the intended
recipient or three Business Days after mailing if mailed by certified mail, postage prepaid (except
that notice to the Interim Trustee shall be deemed given only upon actual receipt by the Interim
Trustee), if to the Interim Trustee, addressed to its Corporate Trust Office; if to the Depositor,
addressed to SLM Funding LLC, 12061 Bluemont Way, V3419, Reston, Virginia 20190, or, as to each
party, at such other address as shall be designated by such party in a written notice to each other
party.

     SECTION 9.3 Severability. Any provision of this 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 9.4 Separate Counterparts. This Agreement may be executed by the parties
hereto in separate counterparts, each of which when so executed and delivered shall be an original,
but all such counterparts shall together constitute but one and the same instrument.

     SECTION 9.5 Successors and Assigns. All covenants and agreements contained herein
shall be binding upon and to the benefit of, the Depositor and its successors and the Interim
Trustee and its successors, all as herein provided.

     SECTION 9.6 Headings. The headings of the various Articles and Sections herein are
for convenience of reference only and shall not define or limit any of the terms or provisions
hereof.

     SECTION 9.7 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware, 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.

8

 

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

	 	 	 	 	 
	 	 	CHASE BANK USA,
	 	 	NATIONAL ASSOCIATION,
	 	 	not in its individual capacity but solely

as the Interim Trustee
	 
	 	 	 	 
	 

	 	By:
	 	     /S/ JOHN J. CASHIN
	 

	 	 	 	 
	 

	 	 	 	Name: John J. Cashin
	 

	 	 	 	Title: Vice President
	 
	 	 	 	 
	 	 	SLM FUNDING LLC,
	 	 	as the Depositor
	 
	 	 	 	 
	 

	 	By:
	 	     /S/ MARK L. HELEEN
	 

	 	 	 	 
	 

	 	 	 	Name: Mark L. Heleen
	 

	 	 	 	Title: Vice President

9exv4w3

 

Exhibit 4.3

 

INTERIM TRUST AGREEMENT

between

VG FUNDING, LLC,

as the Seller

and

CHASE BANK USA,

NATIONAL ASSOCIATION,

not in its individual capacity but solely
as Interim Trustee for
the benefit of
VG Funding, LLC

Dated as of September 28, 2006

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I Definitions and Usage
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II Appointment of VG Funding Trustee
	 	 	1	 
	SECTION 2.1 Appointment of VG Funding Trustee
	 	 	1	 
	SECTION 2.2 Declaration of Trust
	 	 	2	 
	SECTION 2.3 Title to Interim Trust Loans
	 	 	2	 
	 
	 	 	 	 
	ARTICLE III Representations and Warranties of VG Funding
	 	 	2	 
	 
	 	 	 	 
	ARTICLE IV Authority and Duties of VG Funding Trustee
	 	 	3	 
	SECTION 4.1 General Authority
	 	 	3	 
	SECTION 4.2 General Duties
	 	 	3	 
	SECTION 4.3 No Duties Except as Specified in this Agreement
	 	 	3	 
	SECTION 4.4 No Action Except Under Specified Documents
	 	 	3	 
	SECTION 4.5 Restrictions
	 	 	3	 
	 
	 	 	 	 
	ARTICLE V Concerning the VG Funding Trustee
	 	 	4	 
	SECTION 5.1 Acceptance of Trust and Duties
	 	 	4	 
	SECTION 5.2 Representations and Warranties
	 	 	4	 
	SECTION 5.3 Not Acting in Individual Capacity
	 	 	5	 
	SECTION 5.4 VG Funding Trustee Not Liable for the Interim Trust Loans
	 	 	5	 
	 
	 	 	 	 
	ARTICLE VI Compensation of VG Funding Trustee
	 	 	5	 
	 
	 	 	 	 
	ARTICLE VII Termination of Interim Trust Agreement
	 	 	5	 
	 
	 	 	 	 
	ARTICLE VIII Successor VG Funding Trustees
	 	 	6	 
	SECTION 8.1 Eligibility Requirements for VG Funding Trustee
	 	 	6	 
	SECTION 8.2 Resignation or Removal of VG Funding Trustee
	 	 	6	 
	SECTION 8.3 Successor VG Funding Trustee
	 	 	6	 
	SECTION 8.4 Merger or Consolidation of VG Funding Trustee
	 	 	7	 
	 
	 	 	 	 
	ARTICLE IX Miscellaneous
	 	 	7	 
	SECTION 9.1 Supplements and Amendments
	 	 	7	 
	SECTION 9.2 Notices
	 	 	8	 
	SECTION 9.3 Severability
	 	 	8	 
	SECTION 9.4 Separate Counterparts
	 	 	8	 
	SECTION 9.5 Successors and Assigns
	 	 	8	 
	SECTION 9.6 Headings
	 	 	8	 
	SECTION 9.7 Governing Law
	 	 	9	 

 i

 

 

INTERIM TRUST AGREEMENT

     INTERIM TRUST AGREEMENT (the “Agreement”), dated as of September 28, 2006, between VG Funding,
LLC (“VG Funding”) as the Purchaser and subsequent Seller of certain Loans, and CHASE BANK USA,
NATIONAL ASSOCIATION, a national banking association, not in its individual capacity but solely as
Interim Trustee (the “VG Funding Trustee”).

     WHEREAS, VG Funding is a limited liability company established for the purpose of purchasing
Loans from subsidiaries or affiliates of SLM Corporation and selling Loans to, among others, SLM
Funding LLC (the “Depositor”) for resale to special purpose trusts established for the purpose of
financing the purchase of such Loans;

     WHEREAS, on the Closing Date, VG Funding will acquire certain Loans from VG Funding I, a
Delaware statutory trust of which VG Funding is the depositor, and will subsequently enter into a
Sale Agreement with the Depositor (the “Sale Agreements”), for the purpose of effecting the sale of
such Loans to the Depositor; and

     WHEREAS, pursuant to the terms of the Sale Agreement with the Depositor, VG Funding may be
required, under certain circumstances, to repurchase some of the Interim Trust Loans.

     NOW, THEREFORE, VG Funding and the VG Funding Trustee hereby agree as follows:

ARTICLE I

Definitions and Usage

     Except as otherwise specified herein or as the context may otherwise require, capitalized
terms used but not otherwise defined herein are defined in Appendix A to the Indenture, dated as of
September 1, 2006, between the Trustee on behalf of the Trust, the Trust and the Indenture Trustee,
as may be amended or supplemented from time to time.

ARTICLE II

Appointment of VG Funding Trustee

     SECTION 2.1 Appointment of VG Funding Trustee. VG Funding hereby appoints the VG
Funding Trustee, effective as of the date hereof, as trustee, to have all the rights, powers and
duties set forth herein, including, without limitation:

	 	a.	 	to hold legal title to the Interim Trust Loans on behalf and for the benefit of
VG Funding;

1

 

	 	b.	 	to enter into and perform its obligations as the VG Funding Trustee under this
Agreement and the VG Funding Sale Agreement; and
	 
	 	c.	 	to engage in those activities, including entering into agreements, that are
necessary, suitable or convenient to accomplish the foregoing or are incidental thereto
or connected therewith.

     SECTION 2.2 Declaration of Trust. The VG Funding Trustee hereby declares that it will
hold the Interim Trust Loans in trust upon and subject to the conditions set forth herein for the
use and benefit of VG Funding, subject to the obligations of the VG Funding Trustee under the VG
Funding Sale Agreement. Effective as of the date hereof, the VG Funding Trustee shall have all
rights, powers and duties set forth herein with respect to accomplishing the purposes of this
Agreement.

     SECTION 2.3 Title to Interim Trust Loans. Legal title to all of the Interim Trust
Loans shall be vested at all times in the VG Funding Trustee on behalf of and for the benefit of VG
Funding.

ARTICLE III

Representations and Warranties of Depositor

	 	 	 	VG Funding hereby represents and warrants to the VG Funding Trustee that:
	 
	 	1.	 	It is duly organized and validly existing as a Delaware limited liability
company in good standing under the laws of the State of Delaware, with power and
authority to own its properties and to conduct its business as such properties are
currently owned and such business is presently conducted.
	 
	 	2.	 	It has all necessary power and authority to execute and deliver this Agreement
and to carry out its terms; and the execution, delivery and performance of this
Agreement has been duly authorized by VG Funding by all necessary action.
	 
	 	3.	 	This Agreement constitutes a legal, valid and binding obligation of VG Funding
enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization and similar laws relating to creditors’ rights generally and subject to
general principles of equity.
	 
	 	4.	 	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 certificate of formation or limited liability company
operating agreement, in effect as of the date hereof, of VG Funding, or any indenture,
agreement or other instrument to which VG Funding is a party or by
which it is bound; nor result in the creation or imposition of any Lien upon any of

2

 

	 	 	 	its properties pursuant to the terms of any such indenture, agreement or other
instrument (other than as contemplated by the Basic Documents); nor violate any law
or any order, rule or regulation applicable to VG Funding of any court or of any
Federal or state regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over VG Funding or its properties.

ARTICLE IV

Authority and Duties of VG Funding Trustee

     SECTION 4.1 General Authority. The VG Funding Trustee is authorized and directed to
execute and deliver the VG Funding Sale Agreement and this Agreement and each certificate or other
document attached as an exhibit to or contemplated by such agreements, in each case, in such form
as VG Funding shall approve as evidenced conclusively by the VG Funding Trustee’s execution
thereof. The VG Funding Trustee is also authorized and directed on behalf and for the benefit of
VG Funding to acquire and hold legal title to the Interim Trust Loans and to take all actions
required of the VG Funding Trustee pursuant to the VG Funding Sale Agreement and this Agreement.

     SECTION 4.2 General Duties. It shall be the duty of the VG Funding Trustee to
discharge (or cause to be discharged) all its responsibilities as the VG Funding Trustee pursuant
to the terms of the VG Funding Sale Agreement and this Agreement.

     SECTION 4.3 No Duties Except as Specified in this Agreement. The VG Funding Trustee
shall not have any duty or obligation to manage, make any payment with respect to, register,
record, sell, service, dispose of or otherwise deal with the Interim Trust Loans, or to otherwise
take or refrain from taking any action under, or in connection with, any document contemplated
hereby to which the VG Funding Trustee is a party, except as expressly provided by the terms of the
VG Funding Sale Agreement or this Agreement; and no implied duties or obligations shall be read
into this Agreement or the VG Funding Sale Agreement against the VG Funding Trustee.

     SECTION 4.4 No Action Except Under Specified Documents. The VG Funding Trustee shall
not otherwise deal with the Interim Trust Loans except in accordance with the powers granted to and
the authority conferred upon the VG Funding Trustee pursuant to this Agreement and the VG Funding
Sale Agreement.

     SECTION 4.5 Restrictions. The VG Funding Trustee shall not take any action that is inconsistent with the purposes of
the Trust set forth in the Basic Documents.

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ARTICLE V

Concerning the VG Funding Trustee

     SECTION 5.1 Acceptance of Trust and Duties. The VG Funding Trustee accepts the trust
hereby created and agrees to perform its duties hereunder with respect to such trust but only upon
the terms of this Agreement. The VG Funding Trustee shall not be answerable or accountable
hereunder or under the VG Funding Sale Agreement under any circumstances, except (i) for its own
willful misconduct or negligence or (ii) in the case of the inaccuracy of any representation or
warranty contained in Section 5.2 below expressly made by the VG Funding Trustee. In particular,
but not by way of limitation (and subject to the exceptions set forth in the preceding sentence):

	 	1.	 	The VG Funding Trustee shall not be liable for any error of judgment made by a
responsible officer of the VG Funding Trustee.
	 
	 	2.	 	No provision of this Agreement or the VG Funding Sale Agreement shall require
the VG Funding Trustee to expend or risk funds or otherwise incur any financial
liability in the performance of any of its rights or powers hereunder or under the VG
Funding Sale Agreement, if the VG Funding Trustee shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity against such risk or
liability is not reasonably assured or provided to it.
	 
	 	3.	 	The VG Funding Trustee shall not be responsible for or in respect of the
validity or sufficiency of this Agreement or for the due execution hereof by VG Funding
or for the form, character, genuineness, sufficiency, value or validity of any of the
Interim Trust Loans or for or in respect of the validity or sufficiency of the VG
Funding Sale Agreement.

     SECTION 5.2 Representations and Warranties. The VG Funding Trustee hereby represents
and warrants to VG Funding that:

	 	1.	 	It is duly organized and validly existing in good standing under the laws of
its governing jurisdiction and has an office located within the State of Delaware, at
which it will act as trustee for the Trust. It has all requisite power and authority to
execute, deliver and perform its obligations under the VG Funding Sale Agreement and
this Agreement.
	 
	 	2.	 	It has taken all action necessary to authorize the execution and delivery by it
of the VG Funding Sale Agreement and this Agreement, and the VG Funding Sale
Agreement and this Agreement have been executed and delivered by one of its officers
who is duly authorized to execute and deliver the same on its behalf.
	 
	 	3.	 	Neither the execution nor the delivery by it of the VG Funding Sale Agreement
or this Agreement, nor the consummation by it of the transactions contemplated

4

 

	 	 	 	thereby
or hereby nor compliance by it with any of the terms or provisions thereof or hereof
will contravene any Federal or Delaware state law, governmental rule or regulation
governing the banking or trust powers of the VG Funding Trustee or any judgment or
order binding on it, or constitute any default under its charter documents or by-laws
or any indenture, mortgage, contract, agreement or instrument to which it is a party or
by which any of its properties may be bound.

     SECTION 5.3 Not Acting in Individual Capacity. Except as provided in this Article V,
in accepting the trust hereby created, Chase Bank USA, National Association acts solely as VG
Funding Trustee hereunder and not in its individual capacity.

     SECTION 5.4 VG Funding Trustee Not Liable for the Interim Trust Loans. The VG Funding
Trustee makes no representations as to the validity or sufficiency of this Agreement or the VG
Funding Sale Agreement, or of any Interim Trust Loan or related documents. The VG Funding Trustee
shall at no time have any responsibility for or with respect to the sufficiency of the Interim
Trust Loans; the validity or completeness of the assignment to the VG Funding Trustee of legal
title to any Interim Trust Loan on behalf and for the benefit of VG Funding; the performance or
enforcement (except as expressly set forth in the VG Funding Sale Agreement) of any Interim Trust
Loan; the compliance by VG Funding or the Servicer with any warranty or representation made under
any Basic Document or in any related document or the accuracy of any such warranty or
representation or any action or inaction of the Administrator, the Indenture Trustee or the
Servicer or any subservicer taken in the name of the VG Funding Trustee.

ARTICLE VI

Compensation of VG Funding Trustee

     The VG Funding Trustee shall receive as compensation for its services hereunder such fees as
have been separately agreed upon before the date hereof between VG Funding and the VG Funding
Trustee, and the VG Funding Trustee shall be entitled to be reimbursed by VG Funding, to the extent
provided in such separate agreement, for its other reasonable expenses hereunder.

ARTICLE VII

Termination of Interim Trust Agreement

     This Agreement (other than Article VI) and the trust created hereby shall terminate and be of
no further force or effect upon the earlier of (i) the termination of the Trust pursuant to Section
9.1 of the Trust Agreement and (ii) the expiration of 21 years from the death of the last survivor
of the descendants of Joseph P. Kennedy, the late Ambassador of the United States to the Court of
St. James’s, living on the date hereof.

5

 

ARTICLE VIII

Successor VG Funding Trustees

     SECTION 8.1 Eligibility Requirements for VG Funding Trustee. The VG Funding Trustee
shall at all times be a corporation or banking association being authorized to exercise corporate
trust powers and hold legal title to the Interim Trust Loans. In case at any time the VG Funding
Trustee shall cease to be eligible in accordance with the provisions of this Section, the VG
Funding Trustee shall resign immediately in the manner and with the effect specified in Section
8.2.

     SECTION 8.2 Resignation or Removal of VG Funding Trustee. The VG Funding Trustee may
at any time resign and be discharged from the trust hereby created by giving written notice thereof
to VG Funding. Upon receiving such notice of resignation, VG Funding shall promptly appoint a
successor VG Funding Trustee meeting the eligibility requirements of Section 8.1 by written
instrument, in duplicate, one copy of which instrument shall be delivered to the resigning VG
Funding Trustee and one copy to the successor VG Funding Trustee. If no successor VG Funding
Trustee shall have been so appointed and have accepted appointment within 30 days after the giving
of such notice of resignation, the resigning VG Funding Trustee may petition any court of competent
jurisdiction for the appointment of a successor VG Funding Trustee; provided,
however, that such right to appoint or to petition for the appointment of any such
successor shall in no event relieve the resigning VG Funding Trustee from any obligations otherwise
imposed on it under this Agreement or the VG Funding Sale Agreement until such successor has in
fact assumed such appointment.

     If at any time the VG Funding Trustee shall cease to be or shall be likely to cease to be
eligible in accordance with the provisions of Section 8.1 and shall fail to resign after written
request therefor by VG Funding, then VG Funding may remove the VG Funding Trustee. If VG Funding
shall remove the VG Funding Trustee under the authority of the immediately preceding sentence, VG
Funding shall promptly appoint a successor VG Funding Trustee by written instrument, in duplicate,
one copy of which instrument shall be delivered to the outgoing VG Funding Trustee so removed and
one copy to the successor VG Funding Trustee together with payment of all fees owed to the outgoing
VG Funding Trustee.

     Any resignation or removal of the VG Funding Trustee and appointment of a successor VG Funding
Trustee pursuant to any of the provisions of this Section shall not become effective until
acceptance of appointment by the successor VG Funding Trustee pursuant to Section 8.3 and payment
of all fees and expenses owed to the outgoing VG Funding Trustee.

     SECTION 8.3 Successor VG Funding Trustee. Any successor VG Funding Trustee appointed
pursuant to Section 8.2 shall execute, acknowledge and deliver to VG Funding and to its predecessor
VG Funding Trustee an instrument accepting such appointment under this Agreement, and thereupon the
resignation or removal of the predecessor VG Funding Trustee shall become effective and such
successor VG Funding Trustee, without any further act, deed or

6

 

conveyance, shall become fully
vested with all the rights, powers, duties and obligations of its predecessor under this Agreement,
with like effect as if originally named as VG Funding Trustee. The predecessor VG Funding Trustee
shall upon payment of its fees and expenses deliver to the successor VG Funding Trustee all
documents, statements, moneys and properties held by it under this Agreement and shall assign, if
permissible, to the successor VG Funding Trustee any lender identification number obtained from the
Department with respect to the Interim Trust Loans; and VG Funding and the predecessor VG Funding
Trustee shall execute and deliver such instruments and do such other things as may reasonably be
required for fully and certainly vesting and confirming in the successor VG Funding Trustee all
such rights, powers, duties and obligations.

     No successor VG Funding Trustee shall accept such appointment as provided in this Section
unless at the time of such acceptance such successor VG Funding Trustee shall be eligible pursuant
to Section 8.1.

     SECTION 8.4 Merger or Consolidation of VG Funding Trustee. Any corporation into which
the VG Funding Trustee may be merged or converted or with which it may be consolidated, or any
corporation or banking association resulting from any merger, conversion or consolidation to which
the VG Funding Trustee shall be a party, or any corporation succeeding to all or substantially all
the corporate trust business of the VG Funding Trustee, shall, without the execution or filing of
any instrument or any further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding, be the successor of the VG Funding Trustee hereunder; provided
that such corporation or banking association shall be eligible pursuant to Section 8.1.

ARTICLE IX

Miscellaneous

     SECTION 9.1 Supplements and Amendments. This Agreement may be amended by VG Funding
and the VG Funding Trustee, with prior written notice to the Rating Agencies, without the consent
of any of the Noteholders or the
Excess Distribution Certificateholders, to cure any ambiguity, to correct or supplement any
provisions in this Agreement or for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions in this Agreement; provided, however,
that such action shall not, as evidenced by an Opinion of Counsel, adversely affect in any material
respect the interests of any Noteholder or the Excess Distribution Certificateholders.

     This Agreement may also be amended from time to time by VG Funding and the VG Funding Trustee,
with prior written notice to the Rating Agencies and with the consent of the Noteholders evidencing
not less than a majority of the Outstanding Amount of the Notes, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of this Agreement;
provided, however, that no such amendment shall reduce the aforesaid percentage of
the Outstanding Amount of the Notes required to consent to any such

7

 

amendment, without the consent
of all the outstanding Noteholders.

     Promptly after the execution of any such amendment or consent, the VG Funding Trustee shall
furnish written notification of the substance of such amendment or consent to the Indenture Trustee
and each of the Rating Agencies.

     It shall not be necessary for the consent of the Noteholders pursuant to this Section to
approve the particular form of any proposed amendment or consent, but it shall be sufficient if
such consent shall approve the substance thereof. The manner of obtaining such consents and of
evidencing the authorization of the execution thereof shall be subject to such reasonable
requirements as the VG Funding Trustee may prescribe.

     Prior to the execution of any amendment to this Agreement, the VG Funding Trustee shall be
entitled to receive and rely upon an Opinion of Counsel stating that the execution of such
amendment is authorized or permitted by this Agreement. The VG Funding Trustee may, but shall not
be obligated to, enter into any such amendment which affects the VG Funding Trustee’s own rights,
duties or immunities under this Agreement or otherwise.

     SECTION 9.2 Notices. Unless otherwise expressly specified or permitted by the terms
hereof, all notices shall be in writing and shall be deemed given upon receipt by the intended
recipient or three Business Days after mailing if mailed by certified mail, postage prepaid (except
that notice to the VG Funding Trustee shall be deemed given only upon actual receipt by the VG
Funding Trustee), if to the VG Funding Trustee, addressed to its Corporate Trust Office; if to VG
Funding, addressed to VG Funding, LLC, 12061 Bluemont Way, V3419, Reston, Virginia 20190, or, as to
each party, at such other address as shall be designated by such party in a written notice to each
other party.

     SECTION 9.3 Severability. Any provision of this 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 9.4 Separate Counterparts. This Agreement may be executed by the parties
hereto in separate counterparts, each of which when so executed and delivered shall be an original,
but all such counterparts shall together constitute but one and the same instrument.

     SECTION 9.5 Successors and Assigns. All covenants and agreements contained herein
shall be binding upon and to the benefit of, VG Funding and its successors and the VG Funding
Trustee and its successors, all as herein provided.

     SECTION 9.6 Headings. The headings of the various Articles and Sections herein are
for convenience of reference only and shall not define or limit any of the terms or provisions
hereof.

8

 

     SECTION 9.7 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware, 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.

9

 

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

	 	 	 	 	 
	 	 	CHASE BANK USA, NATIONAL ASSOCIATION,
	 	 	not in its individual capacity but solely as Eligible
Lender Trustee for the benefit of VG Funding, LLC
	 
	 	 	 	 
	 

	 	By:
	 	     /S/ JOHN J. CASHIN
	 

	 	 	 	 
	 

	 	 	 	Name: John J. Cashin
	 

	 	 	 	Title: Vice President
	 
	 	 	 	 
	 	 	VG FUNDING, LLC,
	 	 	in its capacity as Purchaser and Seller
	 
	 	 	 	 
	 

	 	By:
	 	     /S/ MARK L. HELEEN
	 

	 	 	 	 
	 

	 	 	 	Name: Mark L. Heleen
	 

	 	 	 	Title: Vice President

10

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