Document:

Exhibit 10.13

 

Exhibit 10.13

LETTER OF CREDIT REIMBURSEMENT AGREEMENT

     THIS LETTER OF CREDIT REIMBURSEMENT AGREEMENT, dated as of October 18, 2007 (this
“Reimbursement Agreement”), is entered into among SANTANDER DRIVE AUTO RECEIVABLES TRUST 2007-3, 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
BANCO SANTANDER, S.A., ACTING THROUGH ITS NEW YORK BRANCH (“Banco Santander”), as letter of credit
issuer (in such capacity, the “Letter of Credit Issuer”).

RECITALS

     WHEREAS, the Seller, the Servicer, the Issuer and the Indenture Trustee are, concurrently
herewith, entering into a Sale and Servicing Agreement, dated as of October 18, 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 October 18, 2007 (the “Indenture”), pursuant to which the Issuer is issuing
$500,000,000 aggregate principal amount of Class A Asset Backed Notes (the “Notes”);

     WHEREAS, Banco Santander, 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 Santander Investment Securities Inc., as arranger, have
entered into a second amended and restated credit agreement, dated as of August 30, 2007 (the
“Credit Agreement”), pursuant to which Banco Santander, 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 Banco Santander 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 Banco Santander 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 rate determined, in the sole opinion of Banco
Santander, to be the rate at which federal funds are being offered for sale in the national federal
funds market at 9:00 a.m. (New York, New York 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 Banco Santander 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 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 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, arising out of or
based upon Section 2.3 against any stockholder, employee, officer, agent, trustee, 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, the Owner
Trustee 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.

 

 

     (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.

 

 

     (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:

     (i) 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

 

 

     (ii) 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:

     (i) 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

     (ii) 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 Banco Santander, S.A., acting through its New York Branch, ABA 026007692, Account Number
107143001, 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 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 2007-3
	 

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

	 	 	 	as Owner Trustee
	 

	 	 	 	300 Delaware Avenue
	 

	 	 	 	9th Floor
	 

	 	 	 	Wilmington, Delaware 19801
	 

	 	 	 	Attention: Mildred F. Smith
	 

	 	 	 	Telephone: 302-576-3703
	 

	 	 	 	Telecopier: 302-576 3717
	 
	 	 	 	 
	 

	 	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:
	 	Banco Santander, S.A., acting through its New
	 

	 	 	 	York Branch
	 

	 	 	 	45 East 53rd Street,
	 

	 	 	 	New York, NY 10022
	 

	 	 	 	Attention: Magda Mesegue
	 

	 	 	 	Telephone: (212) 350-3671
	 

	 	 	 	Telecopier: (212) 350-0630
	 

	 	 	 	E-mail: mmesegue@schny.com
	 
	 	 	 	 
	 

	 	If to the Insurer:
	 	Financial Guaranty Insurance Company
	 

	 	 	 	125 Park Avenue
	 

	 	 	 	New York, New York 10017
	 

	 	 	 	Attention: Structured Finance Surveillance

 

 

	 	 	 	 	 
	 

	 	 	 	Santander Drive 2007-3
	 

	 	 	 	Telecopier: (212) 312-3220
	 

	 	 	 	Telephone: (212) 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) 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:

     (i) 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

     (ii) 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, 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.

 

 

     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.

	 	 	 	 	 
	 	BANCO SANTANDER, S.A., ACTING THROUGH ITS NEW YORK
BRANCH, as Letter of Credit Issuer

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

	 	 	 	 	 
	 	SANTANDER DRIVE AUTO RECEIVABLES TRUST 2007-3, 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/ Annette Morgan
 	 
	 	 	Name:  	Annette E. Morgan 	 
	 	 	Title:  	Trust Officer 	 
	 

	 	 	 	 	 
	 	SANTANDER DRIVE AUTO 

RECEIVABLES LLC, as Seller

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

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	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/ Edna Barbara
 	 
	 	 	Name:  	Edna Barber 	 
	 	 	Title:  	Assistant Vice President 	 

 

 

	 	 	 	 	 

EXHIBIT A

TO THE LETTER OF CREDIT REIMBURSEMENT AGREEMENT

A-1EX-4.1

 

EXHIBIT 4.1

CREDIT FACILITY AMENDING AGREEMENT

THIS AGREEMENT MADE as of October 18, 2007.

BETWEEN:

TELVENT CANADA LTD., a Corporation, incorporated under the Laws of
Canada, and having an office in the City of Calgary in the Province
of Alberta (herein referred to as the “Borrower”)

- AND -

ABN AMRO BANK N.V. (formerly known as LaSalle Commercial Lending, a
division of ABN AMRO Bank N.V.), an authorized foreign bank under
the Bank Act (Canada), and having an office in the City of Toronto
in the Province of Ontario (herein referred to as the “Bank”)

WHEREAS the Borrower and the Bank entered into a credit agreement dated May 2, 2003, as the same
has been amended from time to time up to the Effective Date, as hereinafter defined (the “Original
Credit Agreement”);

AND WHEREAS the Borrower and the Bank wish to amend the Original Credit Agreement as more
particularly provided for herein and subject to the terms and conditions hereof;

NOW THEREFORE, in consideration of the terms, covenants, conditions and provisions hereof given or
made by each party hereto, to or in favor of all or any of the other parties hereto, and other good
and valuable consideration (receipt and sufficiency whereof is hereby acknowledged by each party
receiving the same) the parties hereto mutually covenant and agree as follows.

ARTICLE 1

INTERPRETATION

1.1 Definitions

In this Amending Agreement, unless otherwise defined herein, or unless the context otherwise
requires, all capitalized terms shall have the respective meanings specified in the Original Credit
Agreement. Reference to the “Credit Agreement” means the Original Credit Agreement and amendments
thereto from time to time including the amendments made by this Amending Agreement.

1.2 Effective Date Of Amendments Made Hereby

All of the amendments, replacements and changes to the Original Credit Agreement made by this
Amending Agreement shall be effective as of 8:00 am, local time in Calgary, Alberta, on the
Effective Date (as defined in Section 4.1 hereof).

 

 

ARTICLE 2

AMENDMENTS TO ORIGINAL CREDIT AGREEMENT

2.1 Amendments to Defined Terms

	 	(a)	 	Facility A - The definition of “Facility A” in Section 1.1 of the Original
Credit Agreement is hereby amended by replacing the existing definition with the
following:

“Facility A” means the secured revolving credit facility, in a
maximum aggregate principal amount not to exceed the Facility A
Maximum Amount, to be made available to the Borrower by the Bank in
accordance with the provisions hereof.”

	 	(b)	 	Facility A Maximum Amount - Section 1.1 of the Original Credit Agreement is
hereby further amended by inserting therein in appropriate alphabetical order, the
following definition for “Facility A Maximum Amount”:

“Facility A Maximum Amount” means (i) for a period of 30 consecutive
days commencing on October 18, 2007, U.S. $5,000,000 or the
Equivalent Amount in Canadian Dollars and (ii) thereafter, U.S.
$3,000,000 or the Equivalent Amount in Canadian Dollars, in each
case, subject to any reduction in accordance with the provisions
hereof.”

2.2 Amendments To Section 2.11.2

	 	(a)	 	Paragraph (a) of Section 2.11.2 of the Credit Agreement is hereby amended by
replacing existing paragraph (a) with the following:

2.11.2 Except as provided for in Section 11.1 the maximum of:

	 	“(a) 	 	all Loans under Facility A shall not exceed the lesser of:

	 	(i)	 	the then current Facility A Maximum Amount; or
	 
	 	(ii)	 	the Borrowing Base; and”

2.3 Incorporation of Provisions of Amending Agreement

Subject to the terms and conditions contained in this Amending Agreement, the Original Credit
Agreement and each of the other Documents is hereby amended to the extent necessary to give effect
to the provisions of this Amending Agreement and to incorporate the provisions of this Amending
Agreement into the Original Credit Agreement and the other Documents. Without limiting the
forgoing, all references to the Credit Agreement in the promissory note dated May 2, 2003 made by
the Borrower in favour of the Bank as evidence for Facility A, shall be to the Original Credit
Agreement as amended from time to time, including as amended by this Amending Agreement.

 

 

ARTICLE 3.REPRESENTATIONS AND WARRANTIES.

3.1 Representations and Warranties.

To induce the Bank to enter into this Amending Agreement, the Borrower hereby certifies, represents
and warrants to the Bank that:

	 	(a)	 	Authorization. The Borrower is duly authorized to execute and deliver this
Amending Agreement, and to perform its obligations hereunder.
	 
	 	(b)	 	No Conflicts. The execution, delivery and performance by the Borrower of this
Amending Agreement, do not and will not (a) require any consent or approval of any
governmental agency or authority (other than any consent or approval which has been
obtained and is in full force and effect), (b) conflict with (i) any provision of law,
(ii) the charter, by-laws or other organizational documents of the Borrower or (iii)
any agreement, indenture, instrument or other document, or any judgment, order or
decree, which is binding upon the Borrower or any of its properties.
	 
	 	(c)	 	Validity and Binding Effect. The Original Credit Agreement, as amended by this
Amending Agreement, and each of the other Documents to which it is a party, continue to
be a legal, valid and binding obligation, enforceable against it in accordance with
their respective terms, except as enforceability may be limited by bankruptcy,
insolvency or other similar laws of general application affecting the enforcement of
creditors’ rights or by general principles of equity limiting the availability of
equitable remedies.
	 
	 	(d)	 	No Event of Default. As of the date hereof no Event of Default has occurred or
is continuing.

ARTICLE 4

CREDIT AGREEMENT IF FULL FORCE

4.1 Effective Date of Amendments

This Amending Agreement shall not be effective until satisfaction of the following conditions
precedent, each to the satisfaction of the Bank (the date on which such conditions precedent are so
met, hereinafter referred to in this section 4.1 as the Effective Date):

	 	(a)	 	The Borrower shall have duly authorized, executed and delivered to the Bank
this Amending Agreement and the Bank shall have duly executed this Amending Agreement;
and
	 
	 	(b)	 	Each of the Guarantors shall have acknowledged and agreed to the terms hereof
by executing and delivering the Acknowledgement attached as Schedule A hereto.

 

 

4.2 Credit Agreement Otherwise Unamended

Except as specifically herein provided, the Original Credit Agreement and the other Documents
remain unamended and in full force and effect as at the date hereof.

4.3 Amendment Pursuant To Credit Agreement

This Agreement constitutes an amendment within the meaning of Section 18.10 of the Original Credit
Agreement.

ARTICLE 5

MISCELLANEOUS

5.1 Governing Law

This Agreement shall be conclusively deemed to be a contract made under, and shall for all purposes
be governed by and construed in accordance with the laws of the Province of Alberta and the federal
laws of Canada therein applicable to contracts made in and to be wholly performed in such Province,
without prejudice to or limitation of any other rights or remedies available under the laws of any
jurisdiction where property or assets of the Borrower may be found.

5.2 Consent To Jurisdiction

	 	(a)	 	The Borrower hereby irrevocably submits to the jurisdiction of any Alberta
court sitting in Calgary in any action or proceeding arising out of or relating to this
Agreement and the Security Documents and hereby irrevocably agrees that all claims in
respect of any such action or proceeding may be heard and determined in such Alberta
court. The Borrower hereby consents to service upon it at its address set out in
Section 18.2 of the Credit Agreement of copies of the statement of claim and any
process issued in respect of any such action or proceeding. The Borrower agrees that a
final judgment in any such action or proceeding shall be conclusive and may be enforced
in other jurisdictions by suit on the judgment or in any other manner provided by law.
	 
	 	(b)	 	Nothing in this Section shall affect the right of the Bank to serve legal
process in any other manner permitted by law or affect the right of the Bank to bring
any action or proceeding against the Borrower or its property in the courts of other
jurisdictions.

5.3 Benefit Of The Agreement

This Agreement shall enure to the benefit of and be binding upon the Borrower and the Bank, and
their respective successors and permitted assigns.

5.4 Severability

Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall not
invalidate 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.

5.5 Amendments And Waivers

Except as otherwise specifically provided herein, any provision of this Agreement may be amended
only by the Borrower and the Bank in writing and may be waived only if the Bank so agrees in
writing. Any such waiver and any consent by the Bank under any provision of this Agreement may be
given subject to any conditions thought fit by the Bank. Any waiver or consent shall be effective
only in the instance and for the purpose for which it is given.

5.6 Binding Effect

This Agreement shall be binding upon and enure to the benefit of the Borrower and the Bank and
their respective successors and assigns. The Borrower shall not assign its rights and obligations
hereunder or any interest herein without the prior consent of all the Bank.

5.7 Time Of The Essence

Time shall be of the essence of this Agreement.

5.8 Counterparts

This Agreement may be executed in any number of counterparts, each of which shall be deemed to be
an original and all of which taken together shall be deemed to constitute one and the same
instrument, and it shall not be necessary in making proof of this Agreement to produce or account
for more than one such counterpart.

[Remainder of Page Blank]

 

 

[Signature Page to Amending Agreement]

IN WITNESS WHEREOF the Parties hereto have duly executed this Agreement as of the date first above
written.

	 	 	 	 	 
	 	 	Telvent Canada Ltd.
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	Per:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 

	 	 	 	I/We have the authority to bind the corporation
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	ABN AMRO Bank N.V.
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	Per:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	Per:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 

	 	 	 	I/We have the authority to bind the Bank

 

 

Schedule “A”

ACKNOWLEDGMENT BY GUARANTOR

The undersigned Guarantor hereby expressly acknowledges and consents to the execution by the
Borrower of the foregoing Amending Agreement and agrees that all obligations and liabilities under
the Documents to which the Guarantor is a party shall continue in full force and effect, and that
neither the Amending Agreement nor the Guarantor’s acceptance thereof shall in any manner
whatsoever (i) impair or affect the liability of the Guarantor to the Bank under the any of the
Documents to which the Guarantor is a party, (ii) prejudice, waive, or be construed to impair,
affect, prejudice or waive the rights and abilities of the Bank at law, in equity or by statute,
against the Guarantor pursuant to any Document to which the Guarantor is a party, and/or (iii)
release or discharge, nor be construed to release or discharge, any of the obligations and
liabilities owing to the Bank by the Guarantor under any Document to which the Guarantor is a
party.

Acknowledged and agreed to this 18 day of October, 2007

	 	 	 	 	 
	 	 	TELVENT USA, INC.
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	Per:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 

	 	 	 	I/We have the authority to bind the corporation

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