Document:

exv4w1

 

EXHIBIT 4.1

EXECUTION COPY

VOLKSWAGEN AUTO LOAN ENHANCED TRUST 2003-2

Class A-1 1.14563% Auto Loan Asset Backed Notes

Class A-2 1.55% Auto Loan Asset Backed Notes

Class A-3 2.27% Auto Loan Asset Backed Notes

Class A-4 2.94% Auto Loan Asset Backed Notes

Class B 0.000% Auto Loan Asset Backed Notes

INDENTURE

Dated as of October 29, 2003

JPMORGAN CHASE BANK,

as the Indenture Trustee

	 	 	 
	 	 	2003-2 Indenture

 

CROSS REFERENCE TABLE1

	 	 	 	 	 	 	 
	TIA	 	 	 	 	Indenture
	Section	 	 	 	 	Section
	310
	 	 	(a) (1)	 	 	6.11
	 
	 	 	(a) (2)	 	 	6.11
	 
	 	 	(a) (3)	 	 	6.10; 6.11
	 
	 	 	(a) (4)	 	 	N.A.2
	 
	 	 	(a) (5)	 	 	6.11
	 
	 	 	(b)	 	 	6.8; 6.11
	 
	 	 	(c)	 	 	N.A.
	311
	 	 	(a)	 	 	6.12
	 
	 	 	(b)	 	 	6.12
	 
	 	 	(c)	 	 	N.A.
	312
	 	 	(a)	 	 	7.1
	 
	 	 	(b)	 	 	7.2
	 
	 	 	(c)	 	 	7.2
	313
	 	 	(a)	 	 	7.3
	 
	 	 	(b) (1)	 	 	7.3
	 
	 	 	(b) (2)	 	 	7.3
	 
	 	 	(c)	 	 	7.3
	 
	 	 	(d)	 	 	7.3
	314
	 	 	(a)	 	 	3.9
	 
	 	 	(b)	 	 	3.6; 11.15
	 
	 	 	(c) (1)	 	 	11.15
	 
	 	 	(c) (2)	 	 	11.1
	 
	 	 	(c) (3)	 	 	11.1
	 
	 	 	(d)	 	 	11.1
	 
	 	 	(e)	 	 	11.1
	 
	 	 	(f)	 	 	N.A.
	315
	 	 	(a)	 	 	6.1 (b)
	 
	 	 	(b)	 	 	6.5 (b)
	 
	 	 	(c)	 	 	6.1 (a)
	 
	 	 	(d)	 	 	6.1 (c)
	 
	 	 	(e)	 	 	5.13
	316
	 	 	(a) (1) (A)	 	 	5.11
	 
	 	 	(a) (1) (B)	 	 	5.12
	 
	 	 	(a) (2)	 	 	N.A.
	 
	 	 	(b)	 	 	5.7
	 
	 	 	(c)	 	 	5.6 (b)
	317
	 	 	(a) (1)	 	 	5.3 (b)
	 
	 	 	(a) (2)	 	 	5.3 (d)
	 
	 	 	(b)	 	 	3.3
	318
	 	 	(a)	 	 	11.7

	1 Note: This Cross Reference Table shall not, for any purpose, be deemed to be
part of this Indenture.
	 
	2 N.A. means Not Applicable.

	 	 	 
	 	 	2003-2 Indenture

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page
	 	 	 	 	 	 	 	 
	ARTICLE I	 	DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	2	 
	       SECTION 1.1	 	 	Definitions
	 	 	2	 
	       SECTION 1.2	 	 	Incorporation by Reference of Trust Indenture Act
	 	 	2	 
	       SECTION 1.3	 	 	Other Interpretive Provisions
	 	 	2	 
	ARTICLE II	 	THE NOTES
	 	 	3	 
	       SECTION 2.1	 	 	Form
	 	 	3	 
	       SECTION 2.2	 	 	Execution, Authentication and Delivery
	 	 	3	 
	       SECTION 2.3	 	 	Temporary Notes
	 	 	3	 
	       SECTION 2.4	 	 	Registration of Transfer and Exchange
	 	 	4	 
	       SECTION 2.5	 	 	Mutilated, Destroyed, Lost or Stolen Notes
	 	 	6	 
	       SECTION 2.6	 	 	Persons Deemed Owners
	 	 	6	 
	       SECTION 2.7	 	 	Payment of Principal and Interest; Defaulted Interest
	 	 	7	 
	       SECTION 2.8	 	 	Cancellation
	 	 	7	 
	       SECTION 2.9	 	 	Release of Collateral
	 	 	8	 
	       SECTION 2.10	 	 	Book-Entry Notes
	 	 	8	 
	       SECTION 2.11	 	 	Notices to Clearing Agency
	 	 	9	 
	       SECTION 2.12	 	 	Definitive Notes
	 	 	9	 
	       SECTION 2.13	 	 	Authenticating Agents
	 	 	9	 
	       SECTION 2.14	 	 	Tax Treatment
	 	 	10	 
	       SECTION 2.15	 	 	Transfer of Class B Notes
	 	 	10	 
	ARTICLE III	 	COVENANTS
	 	 	10	 
	       SECTION 3.1	 	 	Payment of Principal and Interest
	 	 	10	 
	       SECTION 3.2	 	 	Maintenance of Office or Agency
	 	 	11	 
	       SECTION 3.3	 	 	Money for Payments To Be Held in Trust
	 	 	11	 
	       SECTION 3.4	 	 	Existence
	 	 	12	 
	       SECTION 3.5	 	 	Protection of Collateral
	 	 	13	 
	       SECTION 3.6	 	 	Opinions as to Collateral
	 	 	13	 
	       SECTION 3.7	 	 	Performance of Obligations; Servicing of Receivables
	 	 	14	 
	       SECTION 3.8	 	 	Negative Covenants
	 	 	14	 
	       SECTION 3.9	 	 	Annual Compliance Statement
	 	 	15	 
	       SECTION 3.10	 	 	Servicer’s Obligations
	 	 	16	 
	       SECTION 3.11	 	 	Restrictions on Certain Other Activities
	 	 	16	 
	       SECTION 3.12	 	 	Restricted Payments
	 	 	16	 

	 	 	 
	 	i	2003-2 Indenture

 

TABLE OF CONTENTS
(Continued)

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page
	 	 	 	 	 	 	 	 
	       SECTION 3.13	 	 	Notice of Events of Default
	 	 	17	 
	       SECTION 3.14	 	 	Further Instruments and Acts
	 	 	17	 
	       SECTION 3.15	 	 	Compliance with Laws
	 	 	17	 
	       SECTION 3.16	 	 	Removal of Administrator
	 	 	17	 
	       SECTION 3.17	 	 	Perfection Representations
	 	 	17	 
	ARTICLE IV	 	SATISFACTION AND DISCHARGE
	 	 	17	 
	       SECTION 4.1	 	 	Satisfaction and Discharge of Indenture
	 	 	17	 
	       SECTION 4.2	 	 	Application of Trust Money
	 	 	18	 
	       SECTION 4.3	 	 	Repayment of Monies Held by Paying Agent
	 	 	18	 
	ARTICLE V	 	REMEDIES
	 	 	18	 
	       SECTION 5.1	 	 	Events of Default
	 	 	18	 
	       SECTION 5.2	 	 	Acceleration of Maturity; Waiver of Event of Default
	 	 	20	 
	       SECTION 5.3	 	 	Collection of Indebtedness and Suits for Enforcement
by the Indenture Trustee
	 	 	20	 
	       SECTION 5.4	 	 	Remedies; Priorities
	 	 	23	 
	       SECTION 5.5	 	 	Optional Preservation of the Collateral
	 	 	25	 
	       SECTION 5.6	 	 	Limitation of Suits
	 	 	25	 
	       SECTION 5.7	 	 	Unconditional Rights of Noteholders To Receive
Principal and Interest
	 	 	26	 
	       SECTION 5.8	 	 	Restoration of Rights and Remedies
	 	 	26	 
	       SECTION 5.9	 	 	Rights and Remedies Cumulative
	 	 	26	 
	       SECTION 5.10	 	 	Delay or Omission Not a Waiver
	 	 	26	 
	       SECTION 5.11	 	 	Control by Noteholders
	 	 	26	 
	       SECTION 5.12	 	 	Waiver of Past Defaults
	 	 	27	 
	       SECTION 5.13	 	 	Undertaking for Costs
	 	 	27	 
	       SECTION 5.14	 	 	Waiver of Stay or Extension Laws
	 	 	28	 
	       SECTION 5.15	 	 	Action on Notes
	 	 	28	 
	       SECTION 5.16	 	 	Performance and Enforcement of Certain Obligations
	 	 	28	 
	       SECTION 5.17	 	 	Sale of Collateral
	 	 	29	 
	ARTICLE VI	 	THE INDENTURE TRUSTEE
	 	 	29	 
	       SECTION 6.1	 	 	Duties of the Indenture Trustee
	 	 	29	 
	       SECTION 6.2	 	 	Rights of the Indenture Trustee
	 	 	30	 

	 	 	 
	 	ii	2003-2 Indenture

 

TABLE OF CONTENTS
(Continued)

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page
	 	 	 	 	 	 	 	 
	       SECTION 6.3	 	 	Individual Rights of the Indenture Trustee
	 	 	31	 
	       SECTION 6.4	 	 	The Indenture Trustee’s Disclaimer
	 	 	32	 
	       SECTION 6.5	 	 	Notice of Defaults
	 	 	32	 
	       SECTION 6.6	 	 	Reports by the Indenture Trustee to Noteholders
	 	 	32	 
	       SECTION 6.7	 	 	Compensation and Indemnity
	 	 	32	 
	       SECTION 6.8	 	 	Removal, Resignation and Replacement of the Indenture Trustee
	 	 	33	 
	       SECTION 6.9	 	 	Successor Indenture Trustee by Merger
	 	 	34	 
	       SECTION 6.10	 	 	Appointment of Co-Indenture Trustee or Separate Indenture Trustee
	 	 	34	 
	       SECTION 6.11	 	 	Eligibility; Disqualification
	 	 	35	 
	       SECTION 6.12	 	 	Preferential Collection of Claims Against the Issuer
	 	 	36	 
	       SECTION 6.13	 	 	Representations and Warranties
	 	 	36	 
	ARTICLE VII	 	NOTEHOLDERS’ LISTS AND REPORTS
	 	 	36	 
	       SECTION 7.1	 	 	The Issuer to Furnish the Indenture Trustee Names and
Addresses of Noteholders
	 	 	36	 
	       SECTION 7.2	 	 	Preservation of Information; Communications to Noteholders
	 	 	36	 
	       SECTION 7.3	 	 	Reports by the Indenture Trustee
	 	 	37	 
	ARTICLE VIII	 	ACCOUNTS, DISBURSEMENTS AND RELEASES
	 	 	37	 
	       SECTION 8.1	 	 	Collection of Money
	 	 	37	 
	       SECTION 8.2	 	 	Trust Accounts
	 	 	37	 
	       SECTION 8.3	 	 	General Provisions Regarding Accounts
	 	 	38	 
	       SECTION 8.4	 	 	Release of Collateral
	 	 	38	 
	       SECTION 8.5	 	 	Opinion of Counsel
	 	 	39	 
	ARTICLE IX	 	SUPPLEMENTAL INDENTURES
	 	 	39	 
	       SECTION 9.1	 	 	Supplemental Indentures Without Consent of Noteholders
	 	 	39	 
	       SECTION 9.2	 	 	Supplemental Indentures with Consent of Noteholders
	 	 	41	 
	       SECTION 9.3	 	 	Execution of Supplemental Indentures
	 	 	42	 
	       SECTION 9.4	 	 	Effect of Supplemental Indenture
	 	 	42	 
	       SECTION 9.5	 	 	Conformity With Trust Indenture Act
	 	 	43	 
	       SECTION 9.6	 	 	Reference in Notes to Supplemental Indentures
	 	 	43	 
	ARTICLE X	 	REDEMPTION OF NOTES
	 	 	43	 

	 	 	 
	 	iii	2003-2 Indenture

 

TABLE OF CONTENTS
(Continued)

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page
	 	 	 	 	 	 	 	 
	       SECTION 10.1	 	 	Redemption
	 	 	43	 
	       SECTION 10.2	 	 	Form of Redemption Notice
	 	 	43	 
	       SECTION 10.3	 	 	Notes Payable on Redemption Date
	 	 	44	 
	ARTICLE XI	 	MISCELLANEOUS
	 	 	44	 
	       SECTION 11.1	 	 	Compliance Certificates and Opinions, etc.
	 	 	44	 
	       SECTION 11.2	 	 	Form of Documents Delivered to the Indenture Trustee
	 	 	46	 
	       SECTION 11.3	 	 	Acts of Noteholders
	 	 	47	 
	       SECTION 11.4	 	 	Notices
	 	 	47	 
	       SECTION 11.5	 	 	Notices to Noteholders; Waiver
	 	 	47	 
	       SECTION 11.6	 	 	Alternate Payment and Notice Provisions
	 	 	48	 
	       SECTION 11.7	 	 	Conflict with Trust Indenture Act
	 	 	48	 
	       SECTION 11.8	 	 	Effect of Headings and Table of Contents
	 	 	48	 
	       SECTION 11.9	 	 	Successors and Assigns
	 	 	49	 
	       SECTION 11.10	 	 	Separability
	 	 	49	 
	       SECTION 11.11	 	 	Benefits of Indenture
	 	 	49	 
	       SECTION 11.12	 	 	Legal Holidays
	 	 	49	 
	       SECTION 11.13	 	 	GOVERNING LAW
	 	 	49	 
	       SECTION 11.14	 	 	Counterparts
	 	 	49	 
	       SECTION 11.15	 	 	Recording of Indenture
	 	 	49	 
	       SECTION 11.16	 	 	Trust Obligation
	 	 	49	 
	       SECTION 11.17	 	 	No Petition
	 	 	50	 
	       SECTION 11.18	 	 	Intent
	 	 	50	 
	       SECTION 11.19	 	 	Submission to Jurisdiction
	 	 	50	 
	       SECTION 11.20	 	 	Subordination of Claims
	 	 	51	 
	       SECTION 11.21	 	 	Limitation of Liability of Owner Trustee
	 	 	51	 

	 	 	 
	Exhibit A	 	
Forms of Notes

	 	 	 
	 	iv	2003-2 Indenture

 

     This INDENTURE, dated as of October 29, 2003 (as amended, modified or
supplemented from time to time, this “Indenture”), is between VOLKSWAGEN AUTO
LOAN ENHANCED TRUST 2003-2, a Delaware statutory trust (the “Issuer”), and
JPMORGAN CHASE BANK, a New York banking corporation, solely as trustee and not
in its individual capacity (the “Indenture Trustee”).

     Each party agrees as follows for the benefit of the other party and the
equal and ratable benefit of the Holders of the Issuer’s Class A-1 1.14563%
Auto Loan Asset Backed Notes (the “Class A-1 Notes”), Class A-2 1.55% Auto Loan
Asset Backed Notes (the “Class A-2 Notes”), Class A-3 2.27% Auto Loan Asset
Backed Notes (the “Class A-3 Notes”), the Class A-4 2.94% Auto Loan Asset
Backed Notes (the “Class A-4 Notes”; together with the Class A-1 Notes, the
Class A-2 Notes and the Class A-3 Notes, the “Class A Notes”) and Class B
0.000% Auto Loan Asset Backed Notes (the “Class B Notes”; together with the
Class A Notes, the “Notes”).

GRANTING CLAUSE

     The Issuer, to secure the payment of principal of and interest on, and any
other amounts owing in respect of, the Notes, equally and ratably without
prejudice, priority or distinction except as set forth herein, and to secure
compliance with the provisions of this Indenture, hereby Grants in trust to the
Indenture Trustee on the Closing Date, as trustee for the benefit of the
Noteholders, all of the Issuer’s right, title and interest, whether now owned
or hereafter acquired, in and to (i) the Trust Estate and (ii) all present and
future claims, demands, causes and choses in action in respect of any or all of
the Trust Estate and all payments on or under and all proceeds of every kind
and nature whatsoever in respect of any or all of the Trust Estate, including
all proceeds of the conversion, voluntary or involuntary, into cash or other
liquid property, all cash proceeds, accounts, accounts receivable, notes,
drafts, acceptances, chattel paper, checks, deposit accounts, insurance
proceeds, condemnation awards, rights to payment of any and every kind and
other forms of obligations and receivables, instruments, securities, financial
assets and other property which at any time constitute all or part of or are
included in the proceeds of any of the Trust Estate (collectively, the
“Collateral”).

     The Indenture Trustee, on behalf of the Noteholders, acknowledges the
foregoing Grant, accepts the trusts under this Indenture and agrees to perform
its duties required in this Indenture in accordance with the provisions of this
Indenture.

     The foregoing Grant is made in trust to secure the payment of principal of
and interest on, and any other amounts owing in respect of, the Notes, equally
and ratably without prejudice, priority or distinction except as set forth
herein, and compliance with the provisions of this Indenture, all as provided
in this Indenture.

     Without limiting the foregoing Grant, any Receivable purchased by the
Seller or the Servicer pursuant to Section 2.3 or Section 3.6, respectively, of
the Sale and Servicing Agreement shall be deemed to be automatically released
from the lien of this Indenture without any action being taken by the Indenture
Trustee upon payment by the Seller or the Servicer, as applicable, of the
related Repurchase Price for such Repurchased Receivable.

	 	 	 
	 	 	2003-2 Indenture

 

ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE

     SECTION 1.1 Definitions. Capitalized terms are used in this Indenture as
defined in Appendix A to the Sale and Servicing Agreement, dated as of October
29, 2003 (as amended, modified or supplemented from time to time, the “Sale and
Servicing Agreement”), among Volkswagen Public Auto Loan Securitization, LLC,
as Seller, the Issuer, VW Credit, Inc., as Servicer, and the Indenture Trustee.

     SECTION 1.2 Incorporation by Reference of Trust Indenture Act. Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated
by reference in and made a part of this Indenture. The following TIA terms used
in this Indenture have the following meanings:

     “Commission” means the Securities and Exchange Commission.

     “indenture securities” means the Notes.

     “indenture security holder” means a Noteholder.

     “indenture to be qualified” means this Indenture.

     “indenture trustee” or “institutional trustee” means the Indenture
Trustee.

     “obligor” on the indenture securities means the Issuer and any other
obligor on the indenture securities.

     All other TIA terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by Commission rule have
the meaning assigned to them by such definitions.

     SECTION 1.3 Other Interpretive Provisions. All terms defined in this
Indenture shall have the defined meanings when used in any certificate or other
document delivered pursuant hereto unless otherwise defined therein. For
purposes of this Indenture and all such certificates and other documents,
unless the context otherwise requires: (a) accounting terms not otherwise
defined in this Indenture, and accounting terms partly defined in this
Indenture to the extent not defined, shall have the respective meanings given
to them under GAAP (provided that, to the extent that the definitions in this
Indenture and GAAP conflict, the definitions in this Indenture shall control);
(b) the words “hereof,” “herein” and “hereunder” and words of similar import
refer to this Indenture as a whole and not to any particular provision of this
Indenture; (c) references to any Article, Section, Schedule or Exhibit are
references to Articles, Sections, Schedules and Exhibits in or to this
Indenture and references to any paragraph, subsection, clause or other
subdivision within any Section or definition refer to such paragraph,
subsection, clause or other subdivision of such Section or definition; (d) the
term “including” and all variations thereof means “including without
limitation”; (e) except as otherwise expressly provided herein, references to
any law or regulation refer to that law or regulation as amended from time to
time and include any successor law or regulation; (f) references to any Person
include that Person’s successors and assigns; and (g) headings are for purposes
of reference only and shall not otherwise affect the meaning or interpretation
of any provision hereof.

	 	 	 
	 	2	2003-2 Indenture

 

ARTICLE II THE NOTES

     SECTION 2.1 Form. The Class A-1 Notes, Class A-2 Notes, Class A-3 Notes,
Class A-4 Notes and Class B Notes, in each case together with the Indenture
Trustee’s certificate of authentication, shall be in substantially the
applicable form set forth in Exhibit A hereto, with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture and may have such letters, numbers or other marks
of identification and such legends or endorsements placed thereon as may,
consistently herewith, be determined by the officers executing the Notes, as
evidenced by their execution of the Notes. Any portion of the text of any Note
may be set forth on the reverse thereof, with an appropriate reference thereto
on the face of the Note.

     Each Note shall be dated the date of its authentication. The terms of the
Notes set forth in Exhibit A hereto are part of the terms of this Indenture.

     SECTION 2.2 Execution, Authentication and Delivery. The Notes shall be
executed on behalf of the Issuer by any of its Authorized Officers. The
signature of any such Authorized Officer on the Notes may be manual or
facsimile.

     Notes bearing the manual or facsimile signature of individuals who were at
any time Authorized Officers of the Issuer shall bind the Issuer,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Notes or did not hold
such offices at the date of such Notes.

     The Indenture Trustee shall, upon Issuer Order, authenticate and deliver
Class A-1 Notes for original issue in an aggregate outstanding principal amount
of $269,000,000, Class A-2 Notes for original issue in an aggregate outstanding
principal amount of $345,000,000, Class A-3 Notes for original issue in an
aggregate outstanding principal amount of $368,000,000, Class A-4 Notes for
original issue in an aggregate outstanding principal amount of $279,315,000 and
Class B Notes for original issue in an aggregate outstanding principal amount
of $29,033,164.85. The aggregate outstanding principal amount of Class A-1
Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 Notes and Class B Notes
outstanding at any time may not exceed such amounts except as provided in
Section 2.5.

     Each Note shall be dated the date of its authentication. The Notes shall
be issuable as registered Notes in the minimum denomination of $100,000 and in
integral multiples of $1,000 in excess thereof (except for one Note of each
Class which may be issued in a denomination other than an integral multiple of
$1,000).

     No Note shall be entitled to any benefit under this Indenture or be valid
or obligatory for any purpose, unless there appears on such Note a certificate
of authentication substantially in the form provided for herein executed by the
Indenture Trustee by the manual signature of one of its authorized signatories,
and such certificate upon any Note shall be conclusive evidence, and the only
evidence, that such Note has been duly authenticated and delivered hereunder.

     SECTION 2.3 Temporary Notes. Pending the preparation of Definitive Notes,
the Issuer may execute, and upon receipt of an Issuer Order, the Indenture
Trustee shall authenticate and deliver, temporary Notes which are printed,
lithographed, typewritten, mimeographed or

	 	 	 
	 	3	2003-2 Indenture

 

otherwise produced, of the tenor of the Definitive Notes in lieu of which
they are issued and with such variations not inconsistent with the terms of
this Indenture as the officers executing such Notes may determine, as evidenced
by their execution of such Notes.

     If temporary Notes are issued, the Issuer shall cause Definitive Notes to
be prepared without unreasonable delay. After the preparation of Definitive
Notes, the temporary Notes shall be exchangeable for Definitive Notes upon
surrender of the temporary Notes at the office or agency of the Issuer to be
maintained as provided in Section 3.2, without charge to the Holder. Upon
surrender for cancellation of any one or more temporary Notes, the Issuer shall
execute and the Indenture Trustee upon Issuer Order shall authenticate and
deliver in exchange therefor a like principal amount of Definitive Notes of
authorized denominations. Until so exchanged, the temporary Notes shall in all
respects be entitled to the same benefits under this Indenture as Definitive
Notes.

     SECTION 2.4 Registration of Transfer and Exchange. The Issuer shall cause
to be kept a register (the “Note Register”) in which, subject to such
reasonable regulations as it may prescribe, the Issuer shall provide for the
registration of Notes and the registration of transfers of Notes. The
Indenture Trustee shall initially be “Note Registrar” for the purpose of
registering Notes and transfers of Notes as herein provided. Upon any
resignation of any Note Registrar, the Issuer shall promptly appoint a
successor or, if it elects not to make such an appointment, assume the duties
of Note Registrar.

     If a Person other than the Indenture Trustee is appointed by the Issuer as
Note Registrar, the Issuer shall give the Indenture Trustee prompt written
notice of the appointment of such Note Registrar and of the location, and any
change in the location, of the Note Register, and the Indenture Trustee shall
have the right to inspect the Note Register at all reasonable times and to
obtain copies thereof, and the Indenture Trustee shall have the right to
conclusively rely upon a certificate executed on behalf of Note Registrar by a
Responsible Officer thereof as to the names and addresses of the Noteholders
and the principal amounts and number of such Notes.

     Upon surrender for registration of transfer of any Note at the office or
agency of the Issuer to be maintained as provided in Section 3.2, if the
requirements of Section 8-401 of the UCC are met, the Issuer shall execute and
upon its written request the Indenture Trustee shall authenticate and the
Noteholder shall obtain from the Indenture Trustee, in the name of the
designated transferee or transferees, one or more new Notes, in any authorized
denominations, of the same Class and a like aggregate outstanding principal
amount.

     At the option of the related Noteholder, Notes may be exchanged for other
Notes in any authorized denominations, of the same Class and a like aggregate
outstanding principal amount, upon surrender of the Notes to be exchanged at
such office or agency. Whenever any Notes are so surrendered for exchange, if
the requirements of Section 8-401 of the UCC are met the Issuer shall execute
and, upon Issuer Request, the Indenture Trustee shall authenticate and the
related Noteholder shall obtain from the Indenture Trustee, the Notes which the
Noteholder making the exchange is entitled to receive.

	 	 	 
	 	4	2003-2 Indenture

 

     All Notes issued upon any registration of transfer or exchange of Notes
shall be the valid obligations of the Issuer, evidencing the same debt, and
entitled to the same benefits under this Indenture, as the Notes surrendered
upon such registration of transfer or exchange.

     Every Note presented or surrendered for registration of transfer or
exchange shall be (i) duly endorsed by, or be accompanied by, a written
instrument of transfer in form and substance satisfactory to the Issuer and the
Indenture Trustee duly executed by the Noteholder thereof or its
attorney-in-fact duly authorized in writing, with such signature guaranteed by
an “eligible grantor institution” meeting the requirements of the Note
Registrar which requirements include membership or participation in a
Securities Transfer Agents Medallion Program (“Stamp”) or such other “signature
guarantee program” as may be determined by the Note Registrar in addition to,
or in substitution for, Stamp, all in accordance with the Exchange Act and (ii)
accompanied by such other documents as the Indenture Trustee may require.

     No service charge shall be made to a Noteholder for any registration of
transfer or exchange of Notes, but the Issuer may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any registration of transfer or exchange of Notes, other than
exchanges pursuant to Section 2.3 or Section 9.6 not involving any transfer.

     The preceding provisions of this Section notwithstanding, the Issuer shall
not be required to make and the Note Registrar need not register transfers or
exchanges of any Notes selected for redemption or of any Note for a period of
15 days preceding the due date for any payment with respect to such Note.

     By acquiring a Class A-1 Note, a Class A-2 Note, a Class A-3 Note or a
Class A-4 Note, each purchaser and transferee shall be deemed to represent and
warrant that either (a) it is not acquiring such Note with the plan assets of
an “employee benefit plan” as defined in Section 3(3) of ERISA, which is
subject to Title I of ERISA, or a “plan” as defined in Section 4975 of the
Code; or (b) the acquisition and holding of such Note will not give rise to a
nonexempt prohibited transaction under Section 406(a) of ERISA of Section 4975
of the Code.

     No Class B Note may be acquired by or for the account of or with the
assets of (a) an employee benefit plan (as defined in Section 3(3) of ERISA)
that is subject to the provisions of Title I of ERISA, (b) a plan described in
Section 4975 of the Code or (c) any entity whose underlying assets include plan
assets by reason of a plan’s investment in the entity. By accepting and
holding a Class B Note, the holder thereof shall be deemed to have represented
and warranted that it is not a Benefit Plan and is not purchasing on behalf of
a Benefit Plan.

     The Indenture Trustee shall have no obligation or duty to monitor,
determine or inquire as to compliance with any restrictions on transfer imposed
under this Indenture or under applicable law with respect to any transfer of
any interest in any Note other than to require delivery of such certificates
and other documentation or evidence as are expressly required by, and to do so
if and when expressly required by the terms of, this Indenture, and to examine
the same to determine substantial compliance as to form with the express
requirements hereof.

	 	 	 
	 	5	2003-2 Indenture

 

     SECTION 2.5 Mutilated, Destroyed, Lost or Stolen Notes. If (i) any
mutilated Note is surrendered to the Indenture Trustee, or the Indenture
Trustee receives evidence to its satisfaction of the destruction, loss or theft
of any Note, and (ii) there is delivered to the Indenture Trustee such security
or indemnity as may be required by it to hold the Issuer and the Indenture
Trustee harmless, then, in the absence of notice to the Issuer, the Note
Registrar or the Indenture Trustee that such Note has been acquired by a
“protected purchaser” (as contemplated by Article 8 of the UCC), and provided
that the requirements of Section 8-405 of the UCC are met, the Issuer shall
execute and upon its written request the Indenture Trustee shall authenticate
and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost
or stolen Note, a replacement Note; provided that if any such destroyed, lost
or stolen Note, but not a mutilated Note, shall have become or within seven
days shall be due and payable, or shall have been called for redemption,
instead of issuing a replacement Note, the Issuer may upon delivery of the
security or indemnity herein required pay such destroyed, lost or stolen Note
when so due or payable or upon the Redemption Date without surrender thereof.
If, after the delivery of such replacement Note or payment of a destroyed, lost
or stolen Note pursuant to the proviso to the preceding sentence, a “protected
purchaser” (as contemplated by Article 8 of the UCC) of the original Note in
lieu of which such replacement Note was issued presents for payment such
original Note, the Issuer and the Indenture Trustee shall be entitled to
recover such replacement Note (or such payment) from the Person to whom it was
delivered or any Person taking such replacement Note from such Person to whom
such replacement Note was delivered or any assignee of such Person, except a
“protected purchaser” (as contemplated by Article 8 of the UCC), and shall be
entitled to recover upon the security or indemnity provided therefor to the
extent of any loss, damage, cost or expense incurred by the Issuer or the
Indenture Trustee in connection therewith.

     Upon the issuance of any replacement Note under this Section 2.5, the
Issuer or the Indenture Trustee may require the payment by the Noteholder of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto and any other reasonable expenses (including the
fees and expenses of the Indenture Trustee or the Note Registrar) connected
therewith.

     Every replacement Note issued pursuant to this Section 2.5 in replacement
of any mutilated, destroyed, lost or stolen Note shall constitute an original
additional contractual obligation of the Issuer, whether or not the mutilated,
destroyed, lost or stolen Note shall be at any time enforceable by anyone, and
shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

     The provisions of this Section 2.5 are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Notes.

     SECTION 2.6 Persons Deemed Owners. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Indenture Trustee and any
agent of the Issuer or the Indenture Trustee may treat the Person in whose name
any Note is registered (as of the day of determination) as the owner of such
Note for the purpose of receiving payments of principal of and interest, if
any, on such Note and for all other purposes whatsoever, whether or not such

	 	 	 
	 	6	2003-2 Indenture

 

Note be overdue, and neither the Issuer, the Indenture Trustee nor any
agent of the Issuer or the Indenture Trustee shall be affected by notice to the
contrary.

     SECTION 2.7 Payment of Principal and Interest; Defaulted Interest. (a)
The Notes shall accrue interest at their respective Interest Rates, and such
interest shall be payable on each Payment Date as specified therein, subject to
Sections 3.1 and 8.2. Any installment of interest or principal, if any, payable
on any Note which is punctually paid or duly provided for by the Issuer on the
applicable Payment Date shall be paid to the Person in whose name such Note (or
one or more Predecessor Notes) is registered on the Record Date, by check
mailed first-class, postage prepaid, to such Person’s address as it appears on
the Note Register on such Record Date, except that, unless Definitive Notes
have been issued pursuant to Section 2.12, with respect to Notes registered on
the Record Date in the name of the nominee of the Clearing Agency (initially,
such nominee to be Cede & Co.), payment will be made by wire transfer in
immediately available funds to the account designated by such nominee and
except for the final installment of principal payable with respect to such Note
on a Payment Date or on the Final Scheduled Payment Date for such Class (and
except for the Redemption Price for any Note called for redemption pursuant to
Section 10.1) which shall be payable as provided below. The funds represented
by any such checks returned undelivered shall be held in accordance with
Section 3.3.

     (b)  The principal of each Note shall be payable in installments on each
Payment Date as provided in Section 8.2. Notwithstanding the foregoing, the
entire unpaid principal amount of the Notes and all accrued interest thereon
shall be due and payable, if not previously paid, on the earlier of (i) the
date on which an Event of Default shall have occurred and be continuing, if the
Indenture Trustee or the Holders of a majority of the aggregate outstanding
principal amount of the Controlling Class, have declared the Notes to be
immediately due and payable in the manner provided in Section 5.2 and (ii) with
respect to any Class of Notes, on the Final Scheduled Payment Date for that
Class. All principal payments on each Class of Notes shall be made pro rata to
the Noteholders of such Class entitled thereto. The Indenture Trustee shall
notify the Person in whose name a Note is registered at the close of business
on the Record Date preceding the Payment Date on which Indenture Trustee
expects that the final installment of principal of and interest on such Note
will be paid. Such notice shall be transmitted prior to such final Payment Date
and shall specify that such final installment will be payable only upon
presentation and surrender of such Note and shall specify the place where such
Note may be presented and surrendered for payment of such installment. Notices
in connection with redemptions of Notes shall be mailed to Noteholders as
provided in Section 10.2.

     SECTION 2.8 Cancellation. All Notes surrendered for payment, registration
of transfer, exchange or redemption shall, if surrendered to any Person other
than the Indenture Trustee, be delivered to the Indenture Trustee and shall be
promptly cancelled by the Indenture Trustee. The Issuer may at any time deliver
to the Indenture Trustee for cancellation any Notes previously authenticated
and delivered hereunder which the Issuer may have acquired in any manner
whatsoever, and all Notes so delivered shall be promptly cancelled by the
Indenture Trustee. No Notes shall be authenticated in lieu of or in exchange
for any Notes cancelled as provided in this Section, except as expressly
permitted by this Indenture. All cancelled Notes may be held or disposed of by
the Indenture Trustee in accordance with its standard retention or disposal
policy as in effect at the time unless the Issuer shall direct by an Issuer
Order that they be returned to it;

	 	 	 
	 	7	2003-2 Indenture

 

provided that such Issuer Order is timely and that such Notes have not
been previously disposed of by the Indenture Trustee.

     SECTION 2.9 Release of Collateral. Subject to Section 11.1, the Indenture
Trustee shall release property from the lien of this Indenture only upon
receipt of an Issuer Request accompanied by an Officer’s Certificate, an
Opinion of Counsel and Independent Certificates in accordance with TIA Sections
314(c) and 314(d)(1) or an Opinion of Counsel in lieu of such Independent
Certificates to the effect that the TIA does not require any such Independent
Certificates. If the Commission shall issue an exemptive order under TIA
Section 304(d) modifying the Issuer’s obligations under TIA Sections 314(c) and
314(d)(1), subject to Section 11.1 and the terms of the Transaction Documents,
the Indenture Trustee shall release property from the lien of this Indenture in
accordance with the conditions and procedures set forth in such exemptive
order.

     SECTION 2.10 Book-Entry Notes. The Class A Notes, upon original issuance,
will be issued in the form of typewritten notes representing the Book-Entry
Notes, to be delivered to the Indenture Trustee, as agent for DTC, the initial
Clearing Agency, by, or on behalf of, the Issuer. One fully registered Class A
Note shall be issued with respect to each $500 million in principal amount of
each Class of Class A Notes and any such lesser amount. Such Class A Notes
shall initially be registered on the Note Register in the name of Cede & Co.,
the nominee of the initial Clearing Agency, and no Note Owner shall receive a
Definitive Note representing such Note Owner’s interest in such Class A Note,
except as provided in Section 2.12. Unless and until definitive, fully
registered Notes (the “Definitive Notes”) have been issued to Note Owners
pursuant to Section 2.12:

     (a)  the provisions of this Section shall be in full force and effect;

     (b)  the Note Registrar and the Indenture Trustee shall be entitled to deal
with the Clearing Agency for all purposes of this Indenture (including the
payment of principal of and interest on the Class A Notes and the giving of
instructions or directions hereunder) as the sole Noteholders of the Class A
Notes, and shall have no obligation to the Note Owners;

     (c)  to the extent that the provisions of this Section conflict with any
other provisions of this Indenture, the provisions of this Section shall
control;

     (d)  the rights of Note Owners shall be exercised only through the Clearing
Agency and shall be limited to those established by law and agreements between
or among such Note Owners and the Clearing Agency and/or the Clearing Agency
Participants or Persons acting through Clearing Agency Participants. Pursuant
to the Note Depository Agreement, unless and until Definitive Notes are issued
pursuant to Section 2.12, the initial Clearing Agency will make book-entry
transfers among the Clearing Agency Participants and receive and transmit
payments of principal of and interest on the Notes to such Clearing Agency
Participants; and

     (e)  whenever this Indenture requires or permits actions to be taken based
upon instructions or directions of Noteholders evidencing a specified
percentage of the aggregate outstanding principal amount of the Outstanding
Notes, the Clearing Agency shall be deemed to represent such percentage only to
the extent that it has received instructions to such effect from

	 	 	 
	 	8	2003-2 Indenture

 

Note Owners and/or Clearing Agency Participants or Persons acting through
Clearing Agency Participants owning or representing, respectively, such
required percentage of the beneficial interest in the Class A Notes and has
delivered such instructions to the Indenture Trustee.

     SECTION 2.11 Notices to Clearing Agency. Whenever a notice or other
communication to the Noteholders is required under this Indenture, unless and
until Definitive Notes shall have been issued to Note Owners pursuant to
Section 2.12, the Indenture Trustee shall give all such notices and
communications specified herein to be given to the Class A Noteholders to the
Clearing Agency, and shall have no obligation to the Note Owners.

     SECTION 2.12 Definitive Notes. The Class B Notes, upon original issuance,
shall be issued as Definitive Notes to be delivered to the Seller by or on
behalf of the Issuer. If (a) the Administrator advises the Indenture Trustee
in writing that the Clearing Agency is no longer willing or able to properly
discharge its responsibilities with respect to the Class A Notes, and the
Administrator or the Indenture Trustee is unable to locate a qualified
successor, (b) the Administrator at its option advises the Indenture Trustee in
writing that it elects to terminate the book-entry system through the Clearing
Agency or (c) after the occurrence of an Event of Default, Note Owners
representing beneficial interests aggregating at least a majority of the
aggregate outstanding principal amount of the Outstanding Notes, voting
together as a single class, advise the Indenture Trustee through the Clearing
Agency or its successor in writing that the continuation of a book-entry system
through the Clearing Agency or its successor is no longer in the best interests
of the Note Owners, then the Clearing Agency shall notify all Note Owners and
the Indenture Trustee of the occurrence of any such event and of the
availability of Definitive Notes to Note Owners requesting the same. Upon
surrender to the Indenture Trustee of the typewritten Note or Notes
representing the Book-Entry Notes by the Clearing Agency, accompanied by
registration instructions, the Issuer shall execute and the Indenture Trustee
shall authenticate the Definitive Notes in accordance with the instructions of
the Clearing Agency. None of the Issuer, the Note Registrar or the Indenture
Trustee shall be liable for any delay in delivery of such instructions and may
conclusively rely on, and shall be protected in relying on, such instructions.
Upon the issuance of Definitive Notes, the Indenture Trustee shall recognize
the Holders of the Definitive Notes as Noteholders.

     The Definitive Notes shall be typewritten, printed, lithographed or
engraved or produced by any combination of these methods (with or without steel
engraved borders), all as determined by the officers executing such Notes, as
evidenced by their execution of such Notes.

     SECTION 2.13 Authenticating Agents. (a) Upon the request of the Issuer,
the Indenture Trustee shall, and if the Indenture Trustee so chooses, the
Indenture Trustee may appoint one or more Persons (each, an “Authenticating
Agent”) with power to act on its behalf and subject to its direction in the
authentication of Notes in connection with issuance, transfers and exchanges
under Sections 2.2, 2.3, 2.4, 2.5 and 9.6, as fully to all intents and purposes
as though each such Authenticating Agent had been expressly authorized by those
Sections to authenticate such Notes. For all purposes of this Indenture, the
authentication of Notes by an Authenticating Agent pursuant to this Section
shall be deemed to be the authentication of Notes “by the Indenture Trustee.”
The Indenture Trustee shall be the Authenticating Agent in the absence of any
appointment thereof.

	 	 	 
	 	9	2003-2 Indenture

 

     (b)  Any corporation into which any Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, consolidation or conversion to which any Authenticating Agent
shall be a party, or any corporation succeeding to all or substantially all of
the corporate trust business of any Authenticating Agent, shall be the
successor of such Authenticating Agent hereunder, without the execution or
filing of any further act on the part of the parties hereto or such
Authenticating Agent or such successor corporation.

     (c)  Any Authenticating Agent may at any time resign by giving written
notice of resignation to the Indenture Trustee and the Issuer. The Indenture
Trustee may at any time terminate the agency of any Authenticating Agent by
giving written notice of termination to such Authenticating Agent and the
Issuer. Upon receiving such notice of resignation or upon such termination,
the Indenture Trustee may appoint a successor Authenticating Agent and shall
give written notice of any such appointment to the Issuer.

     (d)  The provisions of Section 6.4 shall be applicable to any
Authenticating Agent.

     SECTION 2.14 Tax Treatment. The Issuer has entered into this Indenture,
and the Notes shall be issued, with the intention that, solely for federal,
state and local income and franchise tax purposes, the Class A Notes shall
qualify as indebtedness secured by the Collateral. The Issuer, by entering
into this Indenture, and each Class A Noteholder, by its acceptance of a Class
A Note (and each Note Owner by its acceptance of an interest in the applicable
Book-Entry Note), agree to treat the Class A Notes for federal, state and local
income and franchise tax purposes as indebtedness.

     SECTION 2.15 Transfer of Class B Notes. The Class B Notes, or any
interest therein, may only be transferred upon receipt by the Indenture Trustee
and the Issuer of an Opinion of Counsel, subject to the assumptions and
qualifications stated therein, and in a form substantially acceptable to the
Indenture Trustee, substantially to the effect that the transfer of the Class B
Notes:

     (a)  will not adversely affect the tax characterization as debt of Notes of
any outstanding Class that were characterized as debt for federal income tax
purposes at the time of their issuance;

     (b)  will not cause the Issuer to be deemed to be an association (or
publicly traded partnership) taxable as a corporation; and

     (c)  will not cause or constitute an event in which gain or loss would be
recognized by any Noteholder.

ARTICLE III COVENANTS

     SECTION 3.1 Payment of Principal and Interest. The Issuer will duly and
punctually pay the principal of and interest on the Notes in accordance with
the terms of the Notes and this Indenture. Without limiting the foregoing and
subject to Section 8.2, on each Payment Date the Issuer shall cause to be paid
all amounts on deposit in the Collection Account which represent Available
Funds for such Payment Date, Advances made on such Payment Date pursuant to

	 	 	 
	 	10	2003-2 Indenture

 

Section 4.3(c) of the Sale and Servicing Agreement and the Reserve Account
Draw Amount for such Payment Date received by the Servicer during the preceding
Collection Period. Amounts properly withheld under the Internal Revenue Code by
any Person from a payment to any Noteholder of interest and/or principal shall
be considered to have been paid by the Issuer to such Noteholder for all
purposes of this Indenture. The final interest payment on each Class of Notes
is due on the earlier of (a) the Payment Date (including any Redemption Date)
on which the principal amount of that Class of Notes is reduced to zero or (b)
the applicable Final Scheduled Payment Date for that Class of Notes.

     SECTION 3.2 Maintenance of Office or Agency. The Issuer shall maintain in
the Borough of Manhattan, The City of New York, an office or agency where Notes
may be surrendered for registration of transfer or exchange, and where notices
and demands to or upon the Issuer in respect of the Notes and this Indenture
may be served. The Issuer hereby initially appoints the Indenture Trustee to
serve as its agent for the foregoing purposes. The Issuer shall give prompt
written notice to the Indenture Trustee of the location, and of any change in
the location, of any such office or agency. If at any time the Issuer shall
fail to maintain any such office or agency or shall fail to furnish the
Indenture Trustee with the address thereof, such surrenders, notices and
demands may be made or served at the Corporate Trust Office, and the Issuer
hereby appoints the Indenture Trustee as its agent to receive all such
surrenders, notices and demands.

     SECTION 3.3 Money for Payments To Be Held in Trust. As provided in
Sections 8.2 and 5.4, all payments of amounts due and payable with respect to
any Notes that are to be made from amounts withdrawn from the Trust Accounts
shall be made on behalf of the Issuer by the Indenture Trustee or by another
Paying Agent, and no amounts so withdrawn therefrom for payments on the Notes
shall be paid over to the Issuer except as provided in this Section and Section
4.4 of the Sale and Servicing Agreement.

     On or prior to each Payment Date and Redemption Date, the Issuer shall
deposit or cause to be deposited into the Collection Account an aggregate sum
sufficient to pay the amounts then becoming due under the Notes, and the Paying
Agent shall hold such sum to be held in trust for the benefit of the Persons
entitled thereto pursuant to the Transaction Documents and (unless the Paying
Agent is the Indenture Trustee) shall promptly notify the Indenture Trustee in
writing of its action or failure so to act.

     The Issuer shall cause each Paying Agent other than the Indenture Trustee
to execute and deliver to the Indenture Trustee an instrument in which such
Paying Agent shall agree with the Indenture Trustee (and if the Indenture
Trustee acts as Paying Agent, it hereby so agrees to the extent relevant),
subject to the provisions of this Section, that such Paying Agent will:

		
	 	     (i) hold all sums held by it for the payment of amounts due with
respect to the Notes in trust for the benefit of the Persons entitled
thereto until such sums shall be paid to such Persons or otherwise
disposed of as herein provided and pay such sums to such Persons as
provided in the Transaction Documents;

	 	 	 
	 	11	2003-2 Indenture

 

		
	 	     (ii) give the Indenture Trustee written notice of any default by the
Issuer (or any other obligor upon the Notes) of which it has actual
knowledge in the making of any payment required to be made with respect
to the Notes;
	 
	 	     (iii) at any time during the continuance of any such default, upon
the written request of the Indenture Trustee, forthwith pay to the
Indenture Trustee all sums so held in trust by such Paying Agent;
	 
	 	     (iv) promptly resign as a Paying Agent and forthwith pay to the
Indenture Trustee all sums held by it in trust for the payment of Notes
if at any time it ceases to meet the standards required to be met by a
Paying Agent at the time of its appointment; and
	 
	 	     (v) comply with all requirements of the Code with respect to the
withholding from any payments made by it on any Notes of any applicable
withholding taxes imposed thereon and with respect to any applicable
reporting requirements in connection therewith.

     The Issuer may at any time, for the purpose of obtaining the satisfaction
and discharge of this Indenture or for any other purpose, by Issuer Order
direct any Paying Agent to pay to the Indenture Trustee all sums held in trust
by such Paying Agent, such sums to be held by the Indenture Trustee upon the
same trusts as those upon which such sums were held by such Paying Agent; and
upon such a payment by any Paying Agent to the Indenture Trustee, such Paying
Agent shall be released from all further liability with respect to such money.

     Subject to applicable laws with respect to the escheat of funds, any money
held by the Indenture Trustee or any Paying Agent in trust for the payment of
any amount due with respect to any Note and remaining unclaimed for two years
after such amount has become due and payable shall be discharged from such
trust and distributed by the Indenture Trustee to the Issuer on Issuer Request
and the Holder of such Note shall thereafter, as an unsecured general creditor,
look only to the Issuer for payment thereof and all liability of the Indenture
Trustee or such Paying Agent with respect to such trust money shall thereupon
cease; provided, however, that the Indenture Trustee or such Paying Agent,
before being required to make any such repayment, shall at the reasonable
expense of the Issuer cause to be published once, in an Authorized Newspaper
published in the English language, customarily published on each Business Day
and of general circulation in The City of New York, notice that such money
remains unclaimed and that, after a date specified therein, which date shall
not be less than 30 days from the date of such publication, any unclaimed
balance of such money then remaining shall be paid to the Issuer. The Indenture
Trustee may also adopt and employ, at the written direction of and at the
expense of the Issuer, any other reasonable means of notification of such
repayment (including, but not limited to, mailing notice of such repayment to
Holders whose Notes have been called but have not been surrendered for
redemption or whose right to or interest in monies due and payable but not
claimed is determinable from the records of the Indenture Trustee or of any
Paying Agent, at the last address of record for each such Noteholder).

     SECTION 3.4 Existence. The Issuer will keep in full effect its existence,
rights and franchises as a statutory trust under the laws of the State of
Delaware.

	 	 	 
	 	12	2003-2 Indenture

 

     SECTION 3.5 Protection of Collateral. The Issuer intends the security
interest Granted pursuant to this Indenture in favor of the Indenture Trustee
on behalf of the Noteholders to be prior to all other Liens in respect of the
Collateral, and the Issuer shall take all actions necessary to obtain and
maintain, for the benefit of the Indenture Trustee on behalf of the
Noteholders, a first lien on and a first priority, perfected security interest
in the Collateral. The Issuer shall from time to time execute and deliver all
such supplements and amendments hereto and all such financing statements,
continuation statements, instruments of further assurance and other
instruments, all as prepared by the Administrator and delivered to the Issuer,
and shall take such other action necessary or advisable to:

     (a)  Grant more effectively all or any portion of the Collateral;

     (b)  maintain or preserve the lien and security interest (and the priority
thereof) created by this Indenture or carry out more effectively the purposes
hereof;

     (c)  perfect, publish notice of or protect the validity of any Grant made
or to be made by this Indenture;

     (d)  enforce any of the Collateral; or

     (e)  preserve and defend title to the Collateral and the rights of the
Indenture Trustee and the Noteholders in the Collateral against the claims of
all Persons.

     The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact and hereby authorizes the Indenture Trustee to execute all
financing statements, continuation statements or other instruments required to
be executed (if any) pursuant to this Section. Notwithstanding any statement
to the contrary contained herein or in any other Transaction Document, the
Issuer shall not be required to notify any Dealer or any insurer with respect
to any Insurance Policy about any aspect of the transactions contemplated by
the Transaction Documents.

     SECTION 3.6 Opinions as to Collateral. (a) On the Closing Date, the
Issuer shall furnish or cause to be furnished to the Indenture Trustee an
Opinion of Counsel to the effect that, in the opinion of such counsel, either
(i) such action has been taken with respect to the recording and filing of this
Indenture, any indentures supplemental hereto and any other requisite
documents, and with respect to the filing of any financing statements and
continuation statements as are necessary to perfect and make effective the
first priority lien and security interest of this Indenture, and reciting the
details of such action, or (ii) no such action is necessary to make such lien
and security interest effective.

     (b)  Within 120 days after the beginning of each calendar year, beginning
with April 30, 2004, the Issuer shall furnish to the Indenture Trustee an
Opinion of Counsel to the effect that, in the opinion of such counsel, either
(i) such action has been taken with respect to the recording, filing,
re-recording and refiling of this Indenture, any indentures supplemental hereto
and any other requisite documents, and with respect to the execution and filing
of any financing statements and continuation statements as are necessary to
maintain the lien and security interest created by this Indenture, and reciting
the details of such actions or (ii) no such action is necessary to maintain
such lien and security interest. Such Opinion of Counsel shall also

	 	 	 
	 	13	2003-2 Indenture

 

describe the recording, filing, re-recording and refiling of this
Indenture, any indentures supplemental hereto and any other requisite documents
and the execution and filing of any financing statements and continuation
statements that will, in the opinion of such counsel, be required to maintain
the lien and security interest of this Indenture until April 30 in the
following calendar year.

     SECTION 3.7 Performance of Obligations; Servicing of Receivables. (a)
The Issuer shall not take any action and shall use its best efforts not to
permit any action to be taken by others, including the Administrator, that
would release any Person from any of such Person’s material covenants or
obligations under any instrument or agreement included in the Collateral or
that would result in the amendment, hypothecation, subordination, termination
or discharge of, or impair the validity or effectiveness of, any such
instrument or agreement, except as ordered by any bankruptcy or other court or
as expressly provided in this Indenture, the Transaction Documents or such
other instrument or agreement.

     (b)  The Issuer may contract with other Persons to assist it in performing
its duties under this Indenture, and any performance of such duties by a Person
identified to the Indenture Trustee in an Officer’s Certificate of the Issuer
shall be deemed to be action taken by the Issuer. Initially, the Issuer has
contracted with the Administrator, and the Administrator has agreed, to assist
the Issuer in performing its duties under this Indenture.

     (c)  The Issuer shall, and shall cause the Administrator and the Servicer
to, punctually perform and observe all of its respective obligations and
agreements contained in this Indenture, the other Transaction Documents and the
instruments and agreements included in the Collateral, including but not
limited to preparing (or causing to prepared) and filing (or causing to be
filed) all UCC financing statements and continuation statements required to be
filed by the terms of this Indenture and the other Transaction Documents in
accordance with and within the time periods provided for herein and therein.
Except as otherwise expressly provided therein, the Issuer shall not waive,
amend, modify, supplement or terminate any Transaction Document or any
provision thereof other than in accordance with the amendment provisions set
forth in such Transaction Document.

     SECTION 3.8 Negative Covenants. So long as any Notes are Outstanding, the
Issuer shall not:

     (a)  engage in any activities other than financing, acquiring, owning,
pledging and managing the Receivables and the other Collateral as contemplated
by this Indenture and the other Transaction Documents;

     (b)  except as expressly permitted by this Indenture or in the other
Transaction Documents, sell, transfer, exchange or otherwise dispose of any of
the properties or assets of the Issuer;

     (c)  claim any credit on, or make any deduction from the principal or
interest payable in respect of, the Notes (other than amounts properly withheld
from such payments under the Code or applicable state law) or assert any claim
against any present or former Noteholder by reason of the payment of the taxes
levied or assessed upon any part of the Trust Estate;

	 	 	 
	 	14	2003-2 Indenture

 

     (d)  dissolve or liquidate in whole or in part;

     (e)  (i) permit the validity or effectiveness of this Indenture to be
impaired, or permit the lien of this Indenture to be amended, hypothecated,
subordinated, terminated or discharged, or permit any Person to be released
from any covenants or obligations with respect to the Notes under this
Indenture except as may be expressly permitted hereby, (ii) permit any Lien
(other than Permitted Liens) to be created on or extend to or otherwise arise
upon or burden the assets of the Issuer or any part thereof or any interest
therein or the proceeds thereof or (iii) permit the lien of this Indenture not
to constitute a valid first priority (other than with respect to any Permitted
Lien) security interest in the Collateral;

     (f)  incur, assume or guarantee any indebtedness other than indebtedness
incurred in accordance with the Transaction Documents; or

     (g)  merge or consolidate with, or transfer substantially all of its assets
to, any other Person.

     Notwithstanding any statement to the contrary contained herein or in any
other Transaction Document, the Issuer shall not be required to notify any
Dealer or any insurer with respect to any Insurance Policy about any aspect of
the transactions contemplated by the Transaction Documents.

     SECTION 3.9 Annual Compliance Statement.

     (a)  The Issuer shall deliver to the Indenture Trustee and each Rating
Agency, within 120 days after the end of each calendar year, beginning April
30, 2004, an Officer’s Certificate stating, as to the Authorized Officer
signing such Officer’s Certificate, that:

		
	 	     (i) a review of the activities of the Issuer during such year and of
its performance under this Indenture has been made under such Authorized
Officer’s supervision; and
	 
	 	     (ii) to the best of such Authorized Officer’s knowledge, based on
such review, the Issuer has complied with all conditions and covenants
under this Indenture throughout such year, or, if there has been a
default in the compliance of any such condition or covenant, specifying
each such default known to such Authorized Officer and the nature and
status thereof.

     (b)  The Issuer shall:

		
	 	     (i) file with the Indenture Trustee, within 15 days after the Issuer
is required (if at all) to file the same with the Commission, copies of
the annual reports and such other information, documents and reports (or
copies of such portions of any of the foregoing as the Commission may
from time to time by rules and regulations prescribe) as the Issuer may
be required to file with the Commission pursuant to Section 13 or 15(d)
of the Exchange Act or such other reports required pursuant to TIA
Section 314(a)(1);
	 
	 	     (ii) file with the Indenture Trustee and the Commission in
accordance with rules and regulations prescribed from time to time by the
Commission such other information,

	 	 	 
	 	15	2003-2 Indenture

 

		
	 	documents and reports with respect to compliance by the Issuer with
the conditions and covenants of this Indenture as may be required from
time to time by such rules and regulations; and
	 
	 	     (iii) supply to the Indenture Trustee (and the Indenture Trustee
shall transmit by mail to all Noteholders as required by TIA Section
313(c)) such summaries of any information, documents and reports required
to be filed by the Issuer pursuant to clauses (i) and (ii) of this
Section 3.9(b) as may be required pursuant to rules and regulations
prescribed from time to time by the Commission.

     (c)  Delivery of such reports, information and documents to the Indenture
Trustee is for informational purposes only and the Indenture Trustee’s receipt
of such shall not constitute constructive notice of any information contained
therein or determinable from information contained therein, including the
Issuer’s compliance with any of its covenants hereunder (as to which the
Indenture Trustee is entitled to rely exclusively on Officer’s Certificates).

     (d)  Unless the Issuer otherwise determines, the fiscal year of the Issuer
shall be the same as the fiscal year of the Servicer.

     SECTION 3.10 Servicer’s Obligations. The Issuer shall cause the Servicer
to comply with the Sale and Servicing Agreement.

     SECTION 3.11 Restrictions on Certain Other Activities. The Issuer shall
not: (i) engage in any activities other than financing, acquiring, owning,
pledging and managing the Trust Estate and the other Collateral in the manner

contemplated by the Transaction Documents; (ii) issue, incur, assume, guarantee
or otherwise become liable, directly or indirectly, for any indebtedness other
than the Notes; (iii) make any loan, advance or credit to, guarantee (directly
or indirectly or by an instrument having the effect of assuring another’s
payment or performance on any obligation or capability of so doing or
otherwise), endorse or otherwise become contingently liable, directly or
indirectly, in connection with the obligations, stocks or dividends of, own,
purchase, repurchase or acquire (or agree contingently to do so) any stock,
obligations, assets or securities of, or any other interest in, or make any
capital contribution to, any other Person; or (iv) make any expenditure (by
long-term or operating lease or otherwise) for capital assets (either realty or
personalty).

     SECTION 3.12 Restricted Payments. The Issuer shall not, directly or
indirectly, (a) pay any dividend or make any distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, to the Owner Trustee or any owner of a beneficial interest in the
Issuer or otherwise with respect to any ownership or equity interest or
security in or of the Issuer or to the Servicer or the Administrator, (b)
redeem, purchase, retire or otherwise acquire for value any such ownership or
equity interest or security or (c) set aside or otherwise segregate any amounts
for any such purpose; provided that the Issuer may cause to be made
distributions to the Servicer, the Administrator, the Owner Trustee, the
Indenture Trustee, the Noteholders and the Certificateholders as permitted by,
and to the extent funds are available for such purpose under, this Indenture,
the Sale and Servicing Agreement, the Administration Agreement or the Trust
Agreement. Other than as set forth in the preceding sentence, the Issuer will
not, directly or indirectly, make distributions from the Trust Accounts.

	 	 	 
	 	16	2003-2 Indenture

 

     SECTION 3.13 Notice of Events of Default. The Issuer shall promptly
deliver to the Indenture Trustee and each Rating Agency written notice in the
form of an Officer’s Certificate of any event which with the giving of notice,
the lapse of time or both would become an Event of Default, its status and what
action the Issuer is taking or proposes to take with respect thereto.

     SECTION 3.14 Further Instruments and Acts. Upon request of the Indenture
Trustee, the Issuer will execute and deliver such further instruments and do
such further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Indenture.

     SECTION 3.15 Compliance with Laws. The Issuer shall comply with the
requirements of all applicable laws, the non-compliance with which would,
individually or in the aggregate, materially and adversely affect the ability
of the Issuer to perform its obligations under the Notes, this Indenture or any
other Transaction Document.

     SECTION 3.16 Removal of Administrator. For so long as any Notes are
Outstanding, the Issuer shall not remove the Administrator without cause unless
the Rating Agency Condition shall have been satisfied in connection therewith.

     SECTION 3.17 Perfection Representations. The Issuer hereby represents and
warrants to the Indenture Trustee as follows:

     (a)  Good Title. None of the Collateral has been sold, transferred,
assigned or pledged by the Issuer to any Person other than the Indenture
Trustee; immediately prior to the conveyance of the Collateral pursuant to this
Indenture, the Issuer has good and marketable title thereto, free of any Lien;
and, upon execution and delivery of this Indenture by the Issuer, the Indenture
Trustee shall have all of the right, title and interest of the Issuer in, to
and under the Collateral, free of any Lien (other than Permitted Liens); and

     (b)  All Filings Made. All filings (including, without limitation, UCC
filings) necessary in any jurisdiction to give the Indenture Trustee a first
priority perfected security interest in the Collateral have been made.

ARTICLE IV SATISFACTION AND DISCHARGE

     SECTION 4.1 Satisfaction and Discharge of Indenture. This Indenture shall
cease to be of further effect with respect to the Notes except as to (a) rights
of registration of transfer and exchange, (b) substitution of mutilated,
destroyed, lost or stolen Notes, (c) rights of Noteholders to receive payments
of principal thereof and interest thereon, (d) Sections 3.3, 3.4, 3.5, 3.8,
3.10, 3.11 and 3.12, (e) the rights, obligations and immunities of the
Indenture Trustee hereunder (including the rights of the Indenture Trustee
under Section 6.7 and the obligations of the Indenture Trustee under Section
4.2) and (f) the rights of Noteholders as beneficiaries hereof with respect to
the property so deposited with the Indenture Trustee payable to all or any of
them, and the Indenture Trustee, on demand of and at the expense of the Issuer,
shall execute proper instruments acknowledging satisfaction and discharge of
this Indenture with respect to the Notes, when:

     (a)  either (i) all Notes theretofore authenticated and delivered (other
than (1) Notes that have been destroyed, lost or stolen and that have been
replaced or paid as provided in Section 2.5

	 	 	 
	 	17	2003-2 Indenture

 

and (2) Notes for which payment money has theretofore been deposited in
trust or segregated and held in trust by the Issuer and thereafter repaid to
the Issuer or discharged from such trust, as provided in Section 3.3) have been
delivered to the Indenture Trustee for cancellation or (ii) all Notes not
theretofore delivered to the Indenture Trustee for cancellation (1) have become
due and payable, (2) will become due and payable at the Final Scheduled Payment
Date within one year, or (3) are to be called for redemption within one year
under arrangements satisfactory to the Indenture Trustee for the giving of
notice of redemption by the Indenture Trustee in the name, and at the expense,
of the Issuer, and the Issuer, in the case of clauses (1), (2) or (3), has
irrevocably deposited or caused to be irrevocably deposited with the Indenture
Trustee cash or direct obligations of or obligations guaranteed by the United
States of America (which will mature prior to the date such amounts are
payable), in trust for such purpose, in an amount sufficient to pay and
discharge the entire indebtedness on such Notes not theretofore delivered to
the Indenture Trustee for cancellation, when due, to the Final Scheduled
Payment Date or Redemption Date (if Notes shall have been called for redemption
pursuant to Section 10.1), as the case may be;

     (b)  the Issuer has paid or caused to be paid all other sums payable
hereunder by the Issuer; or

     (c)  the Issuer has delivered to the Indenture Trustee an Officer’s
Certificate, an Opinion of Counsel and (if required by the TIA or the Indenture
Trustee) a certificate from a firm of certified public accountants, each
meeting the applicable requirements of Section 11.1(a) and, subject to Section
11.2, each stating that all conditions precedent herein provided for relating
to the satisfaction and discharge of this Indenture have been complied with
(and, in the case of an Officer’s Certificate, stating that the Rating Agency
Condition has been satisfied).

     SECTION 4.2 Application of Trust Money. All monies deposited with the
Indenture Trustee pursuant to Section 4.1 shall be held in trust and applied by
it, in accordance with the provisions of the Notes, this Indenture and Article
IV of the Sale and Servicing Agreement, to the payment, either directly or
through any Paying Agent, as the Indenture Trustee may determine, to the
Holders of the particular Notes for the payment or redemption of which such
monies have been deposited with the Indenture Trustee, of all sums due and to
become due thereon for principal and interest. Such monies need not be
segregated from other funds except to the extent required herein, in the Sale
and Servicing Agreement or by law.

     SECTION 4.3 Repayment of Monies Held by Paying Agent. In connection with
the satisfaction and discharge of this Indenture with respect to the Notes, all
monies then held by any Paying Agent other than the Indenture Trustee under the
provisions of this Indenture with respect to such Notes shall, upon demand of
the Issuer, be paid to the Indenture Trustee to be held and applied according
to Section 3.3 and thereupon such Paying Agent shall be released from all
further liability with respect to such monies.

ARTICLE V REMEDIES

     SECTION 5.1 Events of Default. The occurrence and continuation of any one
of the following events (whatever the reason for such Event of Default and
whether it shall be voluntary or involuntary or be effected by operation of law
or pursuant to any judgment, decree

	 	 	 
	 	18	2003-2 Indenture

 

or order of any court or any order, rule or regulation of any
administrative or governmental body) shall constitute a default under this
Indenture (each, an “Event of Default”):

		
	 	     (a) default in the payment of any interest on any Note of the
Controlling Class when the same becomes due and payable, and such
default shall continue for a period of five days;
	 
	 	     (b) default in the payment of principal of any Note at the
related Final Scheduled Payment Date or the Redemption Date;
	 
	 	     (c) any failure by the Issuer to duly observe or perform in
any material respect any of its material covenants or agreements
made in this Indenture (other than a covenant or agreement, a
default in the observance or performance of which is elsewhere in
this Section specifically dealt with), which failure materially and
adversely affects the interests of the Noteholders, and such
failure shall continue unremedied for a period of 90 days after
there shall have been given, by registered or certified mail, to
the Issuer by the Indenture Trustee or by Noteholders evidencing at
least a majority of the aggregate outstanding principal amount of
the Outstanding Notes, a written notice specifying such failure and
requiring it to be remedied and stating that such notice is a
“Notice of Default” hereunder;
	 
	 	     (d) any representation or warranty of the Issuer made in this
Indenture proves to have been incorrect in any material respect
when made, which failure materially and adversely affects the
rights of the Noteholders, and which failure continues unremedied
for 90 days after there shall have been given, by registered or
certified mail, to the Issuer by the Indenture Trustee or by
Noteholders evidencing at least a majority of the aggregate
outstanding principal amount of the Outstanding Notes, a written
notice specifying such failure and requiring it to be remedied and
stating that such notice is a “Notice of Default” hereunder;
	 
	 	     (e) the filing of a decree or order for relief by a court
having jurisdiction in the premises in respect of the Issuer or any
substantial part of the Collateral in an involuntary case under any
applicable federal or state bankruptcy, insolvency or other similar
law now or hereafter in effect, or appointing a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar
official of the Issuer or for any substantial part of the
Collateral, or ordering the winding-up or liquidation of the
Issuer’s affairs, and such decree or order shall remain unstayed
and in effect for a period of 90 consecutive days; or
	 
	 	     (f) the commencement by the Issuer of a voluntary case under
any applicable federal or state bankruptcy, insolvency or other
similar law now or hereafter in effect, or the consent by the
Issuer to the entry of an order for relief in an involuntary case
under any such law, or the consent by the Issuer to the appointment
or taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of the Issuer
or for any substantial part of the Trust Estate, or the making by
the Issuer of any general assignment for the

	 	 	 
	 	19	2003-2 Indenture

 

		
	 	     benefit of creditors, or the failure by the Issuer generally
to pay its debts as such debts become due, or the taking of action
by the Issuer in furtherance of any of the foregoing;

provided, however, that a delay in or failure of performance referred to under
clauses (a), (b) or (c) above for a period of 150 days will not constitute an
Event of Default if that delay or failure was caused by force majeure or other
similar occurrence.

     SECTION 5.2 Acceleration of Maturity; Waiver of Event of Default. Except
as set forth in the following sentence, if an Event of Default should occur and
be continuing, then and in every such case the Indenture Trustee or the
Noteholders representing not less than a majority of the aggregate outstanding
principal amount of the Controlling Class, may declare all the Notes to be
immediately due and payable, by a notice in writing to the Issuer (and to the
Indenture Trustee if given by Noteholders), and upon any such declaration the
unpaid principal amount of such Notes, together with accrued and unpaid
interest thereon through the date of acceleration, shall become immediately due
and payable. If an Event of Default specified in Section 5.1(e) or (f) occurs,
all unpaid principal, together with all accrued and unpaid interest thereon, of
all Notes, and all other amounts payable hereunder, shall automatically become
due and payable without any declaration or other act on the part of the
Indenture Trustee or any Noteholder.

     At any time after such declaration of acceleration of maturity has been
made and before a judgment or decree for payment of the money due has been
obtained by the Indenture Trustee as hereinafter described in this Article V,
the Noteholders representing a majority of the aggregate outstanding principal
amount of the Controlling Class, by written notice to the Issuer and the
Indenture Trustee, may rescind and annul such declaration and its consequences
if:

     (a)  the Issuer has paid or deposited with the Indenture Trustee a sum
sufficient to pay (i) all payments of principal of and interest on all Notes
and all other amounts that would then be due hereunder or upon such Notes if
the Event of Default giving rise to such acceleration had not occurred, and
(ii) all sums paid or advanced by the Indenture Trustee hereunder and the
reasonable compensation, expenses, disbursements and advances of the Indenture
Trustee and its agents and counsel; and

     (b)  all Events of Default, other than the nonpayment of the principal of
the Notes that has become due solely by such acceleration, have been cured or
waived as provided in Section 5.12.

     No such rescission shall affect any subsequent default or impair any right
consequent thereto.

     If the Notes have been declared due and payable or have automatically
become due and payable following an Event of Default, the Indenture Trustee may
institute proceedings to collect amounts due, exercise remedies as a secured
party (including foreclosure or sale of the Collateral) or elect to maintain
the Collateral and continue to apply the proceeds from the Collateral as if
there had been no declaration of acceleration. Any sale of the Collateral by
the Indenture Trustee will be subject to the terms and conditions of Section
5.4.

     SECTION 5.3 Collection of Indebtedness and Suits for Enforcement by the
Indenture Trustee. (a) The Issuer covenants that if (i) default is made in
the payment of any interest on

	 	 	 
	 	20	2003-2 Indenture

 

any Note of the Controlling Class when the same becomes due and payable,
and such default continues for a period of five days, or (ii) default is made
in the payment of the principal of or any installment of the principal of any
Note when the same becomes due and payable, the Issuer will, upon demand of the
Indenture Trustee in writing as directed by a majority of the aggregate
outstanding principal amount of the Controlling Class, pay to the Indenture
Trustee, for the benefit of the Holders of the Notes, the whole amount then due
and payable on such Notes for principal and interest, with interest upon the
overdue principal, and, to the extent payment at such rate of interest shall be
legally enforceable, upon overdue installments of interest, at the applicable
Interest Rate and in addition thereto such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Indenture
Trustee and its agents and counsel.

     (b)  In case the Issuer shall fail forthwith to pay the amounts described
in clause (a) above upon such demand, the Indenture Trustee, in its own name
and as trustee of an express trust, may institute a proceeding for the
collection of the sums so due and unpaid, and may prosecute such proceeding to
judgment or final decree, and may enforce the same against the Issuer or other
obligor upon such Notes and collect in the manner provided by law out of the
property of the Issuer or other obligor upon such Notes, wherever situated, the
monies adjudged or decreed to be payable.

     (c)  If an Event of Default occurs and is continuing, the Indenture Trustee
may, as more particularly provided in Section 5.4, in its discretion, proceed
to protect and enforce its rights and the rights of the Noteholders, by such
appropriate proceedings as the Indenture Trustee shall deem most effective to
protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any
power granted herein, or to enforce any other proper remedy or legal or
equitable right vested in the Indenture Trustee by this Indenture or by law.

     (d)  In case there shall be pending, relative to the Issuer or any other
obligor upon the Notes or any Person having or claiming an ownership interest
in the Collateral, proceedings under the Bankruptcy Code or any other
applicable federal or state bankruptcy, insolvency or other similar law, or in
case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Issuer or its property or such other obligor or Person,
or in case of any other comparable judicial proceedings relative to the Issuer
or other obligor upon the Notes, or to the creditors or property of the Issuer
or such other obligor, the Indenture Trustee, irrespective of whether the
principal of any Notes shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Indenture Trustee
shall have made any demand pursuant to the provisions of this Section, shall be
entitled and empowered, by intervention in such proceedings or otherwise:

		
	 	     (i) to file and prove a claim or claims for the whole amount of
principal and interest owing and unpaid in respect of the Notes and to
file such other papers or documents as may be necessary or advisable in
order to have the claims of the Indenture Trustee (including any claim
for reasonable compensation to the Indenture Trustee and each predecessor
Indenture Trustee, and their respective agents, attorneys and counsel,
and for reimbursement of all expenses and liabilities incurred, and all
advances made, by

	 	 	 
	 	21	2003-2 Indenture

 

		
	 	the Indenture Trustee and each predecessor Indenture Trustee, except
as a result of negligence, bad faith or willful misconduct) and of the
Noteholders allowed in such proceedings;
	 
	 	     (ii) unless prohibited by applicable law and regulations, to vote on
behalf of the Holders of Notes in any election of a trustee, a standby
trustee or person performing similar functions in any such proceedings;
	 
	 	     (iii) to collect and receive any monies or other property payable or
deliverable on any such claims and to distribute all amounts received
with respect to the claims of the Noteholders and of the Indenture
Trustee on their behalf; and
	 
	 	     (iv) to file such proofs of claim and other papers or documents as
may be necessary or advisable in order to have the claims of the
Indenture Trustee or the Noteholders allowed in any judicial proceedings
relative to the Issuer, its creditors and its property;

and any trustee, receiver, liquidator, custodian or other similar official in
any such proceeding is hereby authorized by each Noteholder to make payments to
the Indenture Trustee, and, in the event that the Indenture Trustee shall
consent to the making of payments directly to such Noteholders, to pay to the
Indenture Trustee such amounts as shall be sufficient to cover reasonable
compensation to the Indenture Trustee, each predecessor Indenture Trustee and
their respective agents, attorneys and counsel, and all other expenses and
liabilities incurred, and all advances made, by the Indenture Trustee and each
predecessor Indenture Trustee except as a result of negligence, bad faith or
willful misconduct, and any other amounts due the Indenture Trustee under
Section 6.7.

     (e)  Nothing herein contained shall be deemed to authorize the Indenture
Trustee to authorize or consent to or vote for or accept or adopt on behalf of
any Noteholder any plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Holder thereof or to
authorize the Indenture Trustee to vote in respect of the claim of any
Noteholder in any such proceeding except, as aforesaid, to vote for the
election of a trustee in bankruptcy or similar person.

     (f)  All rights of action and of asserting claims under this Indenture, or
under any of the Notes, may be enforced by the Indenture Trustee without the
possession of any of the Notes or the production thereof in any trial or other
proceedings relative thereto, and any such action or proceedings instituted by
the Indenture Trustee shall be brought in its own name as trustee of an express
trust, and any recovery of judgment, subject to the payment of the expenses,
disbursements and compensation of the Indenture Trustee, each predecessor
Indenture Trustee and their respective agents and attorneys, shall be for the
ratable benefit of the Holders of the Class A Notes and then for the ratable
benefit of the Holders of the Class B Notes, to the extent set forth in Section
5.4(b).

     (g)  In any proceedings brought by the Indenture Trustee (and also any
proceedings involving the interpretation of any provision of this Indenture to
which the Indenture Trustee

	 	 	 
	 	22	2003-2 Indenture

 

shall be a party), the Indenture Trustee shall be held to represent all
the Noteholders, and it shall not be necessary to make any Noteholder a party
to any such proceedings.

     SECTION 5.4 Remedies; Priorities. (a) If an Event of Default shall have
occurred and be continuing, the Indenture Trustee may do one or more of the
following (subject to Sections 5.2 and 5.5):

		
	 	     (i) institute proceedings in its own name and as trustee of an
express trust for the collection of all amounts then payable on the Notes
or under this Indenture with respect thereto, whether by declaration or
otherwise, enforce any judgment obtained, and collect from the Issuer and
any other obligor upon such Notes monies adjudged due;
	 
	 	     (ii) institute proceedings from time to time for the complete or
partial foreclosure of this Indenture with respect to the Collateral;
	 
	 	     (iii) exercise any remedies of a secured party under the UCC and
take any other appropriate action to protect and enforce the rights and
remedies of the Indenture Trustee and the Noteholders; and
	 
	 	     (iv) Subject to Section 5.17, after an acceleration of the maturity
of the Notes pursuant to Section 5.2, sell the Collateral or any portion
thereof or rights or interest therein, at one or more public or private
sales called and conducted in any manner permitted by law;

provided, however, that the Indenture Trustee may not sell or otherwise
liquidate the Collateral following an Event of Default unless (A) the holders
of 100% of the aggregate outstanding principal amount of the Controlling Class
have consented to such liquidation, (B) the proceeds of such sale or
liquidation are sufficient to pay in full the principal of and the accrued
interest on the Outstanding Notes or (C) the default relates to the failure to
pay interest or principal when due (a “Payment Default”) and the Indenture
Trustee determines (but shall have no obligation to make such determination)
that the Collections on the Receivables will not be sufficient on an ongoing
basis to make all payments on the Notes as they would have become due if the
Notes had not been declared due and payable; and the Indenture Trustee obtains
the consent of the holders of 66-2/3% of the aggregate outstanding principal
amount of the Controlling Class. In determining such sufficiency or
insufficiency with respect to clauses (B) and (C) of the preceding sentence,
the Indenture Trustee may, but need not, obtain and rely upon an opinion of an
Independent investment banking or accounting firm of national reputation as to
the feasibility of such proposed action and as to the sufficiency of the Trust
Estate for such purpose. Notwithstanding anything herein to the contrary, if
the Event of Default does not relate to a Payment Default or Bankruptcy Event
with respect to the Issuer, the Indenture Trustee may not sell or otherwise
liquidate the Trust Estate unless the Holders of all Outstanding Notes consent
to such sale or the proceeds of such sale are sufficient to pay in full the
principal of and accrued interest on the Outstanding Notes.

     (b)  Notwithstanding the provisions of Section 8.2 of this Indenture or
Section 4.4 of the Sale and Servicing Agreement, if the Indenture Trustee
collects any money or property pursuant to this Article V and the Notes have
been accelerated, it shall pay out such money or property

	 	 	 
	 	23	2003-2 Indenture

 

(and other amounts, including all amounts held on deposit in the Reserve
Account) held as Collateral for the benefit of the Noteholders (net of
liquidation costs associated with the sale of the Trust Estate) in the
following order of priority:

		
	 	     (i) first, to the Indenture Trustee and the Owner Trustee, any
accrued and unpaid fees (including any unpaid Indenture Trustee or Owner
Trustee fees with respect to prior periods) reasonable expenses and
indemnity payments which have not previously been paid; provided that
aggregate expenses payable to the Indenture Trustee and the Owner Trustee
pursuant to this clause (i) shall be limited to $100,000 per annum;
	 
	 	     (ii) second, to the Servicer (or any predecessor Servicer, if
applicable), for reimbursement of all outstanding Advances;
	 
	 	     (iii) third, to the Servicer, the Servicing Fee and all unpaid
Servicing Fees with respect to prior periods;
	 
	 	     (iv) fourth, to the Class A Noteholders, for payment to each
respective Class of Noteholders, the Class A Accrued Note Interest for
the related Interest Period; provided that if there are not sufficient
funds available to pay the entire amount of the Class A Accrued Note
Interest, the amounts available shall be applied to the payment of such
interest on the Class A Notes on a pro rata basis based upon the amount
of interest payable to each Class of Class A Notes;
	 
	 	     (v) fifth, to the Holders of the Class A-1 Notes in respect of
principal thereof until the Class A-1 Notes have been paid in full;
	 
	 	     (vi) sixth, to the Holders of the Class A-2 Notes, Class A-3 Notes
and Class A-4 Notes, in respect of principal thereon, on a pro rata basis
(based on the aggregate outstanding principal amount of the Outstanding
Notes of each Class on such Payment Date), until all Classes of the Class
A Notes have been paid in full;
	 
	 	     (vii) seventh, to the Holders of the Class B Notes in respect of
principal thereof until the Class B Notes have been paid in full;
	 
	 	     (viii) eighth, to the Indenture Trustee and the Owner Trustee, any
accrued and unpaid fees, reasonable expenses and indemnity payments which
have not previously been paid; and
	 
	 	     (ix) ninth, any remaining funds shall be distributed to or at the
direction of the Certificateholder.

     The Indenture Trustee may fix a record date and payment date for any
payment to Noteholders pursuant to this Section. At least 15 days before such
record date, the Issuer shall mail to each Noteholder and the Indenture Trustee
a notice that states the record date, the payment date and the amount to be
paid.

     Prior to an acceleration of the Notes after an Event of Default, if the
Indenture Trustee collects any money or property pursuant to this Article V,
such amounts shall be deposited into

	 	 	 
	 	24	2003-2 Indenture

 

the Collection Account and distributed in accordance with Section 4.4 of
the Sale and Servicing Agreement and Section 8.2 hereof.

     SECTION 5.5 Optional Preservation of the Collateral. If the Notes have
been declared or are automatically due and payable under Section 5.2 following
an Event of Default and such declaration or automatic occurrence and its
consequences have not been rescinded and annulled, if permitted hereunder, the
Indenture Trustee may, but need not, elect to maintain possession of the Trust
Estate and continue to apply the proceeds thereof in accordance with Section
5.4(b). It is the intent of the parties hereto and the Noteholders that there
be at all times sufficient funds for the payment of principal of and interest
on the Notes, and the Indenture Trustee shall take such intent into account
when determining whether or not to maintain possession of the Collateral. In
determining whether to maintain possession of the Collateral, the Indenture
Trustee may, but need not, obtain and rely upon an opinion of an Independent
investment banking or accounting firm of national reputation as to the
feasibility of such proposed action and as to the sufficiency of the Collateral
for such purpose.

     SECTION 5.6 Limitation of Suits. (a) No Holder of any Note shall have
any right to institute any proceeding, judicial or otherwise, with respect to
this Indenture, or for the appointment of a receiver or trustee, or for any
other remedy hereunder, unless:

		
	 	     (i) such Holder has previously given written notice to the Indenture
Trustee of a continuing Event of Default;
	 
	 	     (ii) the Holders of not less than 25% of the aggregate outstanding
principal amount of the Controlling Class have made written request to
the Indenture Trustee to institute such proceeding in respect of such
Event of Default in its own name as the Indenture Trustee hereunder;
	 
	 	     (iii) such Holder or Holders have offered to the Indenture Trustee
indemnity reasonably satisfactory to it against the costs, expenses and
liabilities to be incurred in complying with such request;
	 
	 	     (iv) the Indenture Trustee for 60 days after its receipt of such
notice, request and offer of indemnity has failed to institute such
proceedings; and
	 
	 	     (v) no direction inconsistent with such written request has been
given to the Indenture Trustee during such 60-day period by the Holders
of a majority of the aggregate outstanding principal amount of the
Controlling Class.

No Noteholder or group of Noteholders shall have any right in any manner
whatever by virtue of, or by availing of, any provision of this Indenture to
affect, disturb or prejudice the rights of any other Noteholders or to obtain
or to seek to obtain priority or preference over any other Noteholders or to
enforce any right under this Indenture, except, in each case, to the extent and
in the manner herein provided.

     In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Noteholders,
each representing less than a majority of the aggregate outstanding principal
amount of the Controlling Class, the Indenture Trustee in its sole

	 	 	 
	 	25	2003-2 Indenture

 

discretion may determine what action, if any, shall be taken,
notwithstanding any other provisions of this Indenture.

     (b)  No Noteholder shall have any right to vote except as provided pursuant
to this Indenture and the Notes, nor any right in any manner to otherwise
control the operation and management of the Issuer. However, in connection
with any action as to which Noteholders are entitled to vote or consent under
this Indenture and the Notes, the Issuer may set a record date for purposes of
determining the identity of Noteholders entitled to vote or consent in
accordance with TIA Section 316(c).

     SECTION 5.7 Unconditional Rights of Noteholders To Receive Principal and
Interest. Notwithstanding any other provisions in this Indenture, the Holder
of any Note shall have the right, which is absolute and unconditional, to
receive payment of the principal of and interest on such Note on or after the
respective due dates thereof expressed in such Note or in this Indenture (or,
in the case of redemption, on or after the Redemption Date) and to institute
suit for the enforcement of any such payment and such right shall not be
impaired without the consent of such Noteholder.

     SECTION 5.8 Restoration of Rights and Remedies. If the Indenture Trustee
or any Noteholder has instituted any Proceeding to enforce any right or remedy
under this Indenture and such Proceeding has been discontinued or abandoned for
any reason or has been determined adversely to the Indenture Trustee or to such
Noteholder, then and in every such case the Issuer, the Indenture Trustee and
the Noteholders shall, subject to any determination in such Proceeding, be
restored severally and respectively to their former positions hereunder, and
thereafter all rights and remedies of the Indenture Trustee and the Noteholders
shall continue as though no such Proceeding had been instituted.

     SECTION 5.9 Rights and Remedies Cumulative. No right or remedy herein
conferred upon or reserved to the Indenture Trustee or to the Noteholders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at
law or in equity or otherwise. The assertion or employment of any right or
remedy hereunder or otherwise shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

     SECTION 5.10 Delay or Omission Not a Waiver. No delay or omission of the
Indenture Trustee or any Holder of any Note to exercise any right or remedy
accruing upon any Default or Event of Default shall impair any such right or
remedy or constitute a waiver of any such Default or Event of Default or an
acquiescence therein. Every right and remedy given by this Article V or by law
to the Indenture Trustee or to the Noteholders may be exercised from time to
time, and as often as may be deemed expedient, by the Indenture Trustee or by
the Noteholders, as the case may be.

     SECTION 5.11 Control by Noteholders. Subject to the provisions of
Sections 5.4, 5.6, 6.2(d) and 6.2(e), Noteholders holding not less than a
majority of the aggregate outstanding principal amount of the Controlling
Class, shall have the right to direct the time, method and place of conducting
any proceeding for any remedy available to the Indenture Trustee with

	 	 	 
	 	26	2003-2 Indenture

 

respect to the Notes or with respect to the exercise of any trust or power
conferred on the Indenture Trustee; provided that

		
	 	     (a) such direction shall not be in conflict with any rule of
law or with this Indenture;
	 
	 	     (b) subject to the express terms of the proviso and the last
sentence of Section 5.4(a), any direction to the Indenture Trustee
to sell or liquidate the Trust Estate shall be by the Holders of
Notes representing not less than 100% of the aggregate outstanding
principal amount of the Outstanding Notes unless the proceeds of
such sale are sufficient to pay in full the principal of and
accrued interest on the Outstanding Notes;
	 
	 	     (c) if the conditions set forth in Section 5.5 have been
satisfied and the Indenture Trustee elects to retain the Trust
Estate pursuant to such Section, then any direction to the
Indenture Trustee by Holders of Notes representing less than 100%
of the aggregate outstanding principal amount of the Outstanding
Notes to sell or liquidate the Trust Estate shall be of no force
and effect;
	 
	 	     (d) the Indenture Trustee may take any other action deemed
proper by the Indenture Trustee that is not inconsistent with such
direction, applicable law and the terms of this Indenture; and
	 
	 	     (e) such direction shall be in writing;

provided, further, that, subject to Section 6.1, the Indenture Trustee need not
take any action that it determines might expose it to personal liability or
might materially adversely affect or unduly prejudice the rights of any
Noteholders not consenting to such action.

     SECTION 5.12 Waiver of Past Defaults. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.2, the
Holders of Notes of not less than a majority of the aggregate outstanding
principal amount of the Controlling Class, may waive any past Default or Event
of Default and its consequences except a Default (a) in payment of principal of
or interest on any of the Notes, (b) in respect of a covenant or provision
hereof which cannot be modified or amended without the consent of each
Noteholder or (c) arising from a Bankruptcy Event with respect to the Issuer.
In the case of any such waiver, the Issuer, the Indenture Trustee and the
Noteholders shall be restored to their former positions and rights hereunder,
respectively; but no such waiver shall extend to any subsequent or other
Default or impair any right consequent thereto.

     Upon any such waiver, such Default shall cease to exist and be deemed to
have been cured and not to have occurred, and any Event of Default arising
therefrom shall be deemed to have been cured and not to have occurred, for
every purpose of this Indenture; but no such waiver shall extend to any prior,
subsequent or other Default or Event of Default or impair any right consequent
thereto.

     SECTION 5.13 Undertaking for Costs. All parties to this Indenture agree,
and each Noteholder by such Noteholder’s acceptance thereof shall be deemed to
have agreed, that any

	 	 	 
	 	27	2003-2 Indenture

 

court may in its discretion require, in any suit for the enforcement of
any right or remedy under this Indenture, or in any suit against the Indenture
Trustee for any action taken, suffered or omitted by it as the Indenture
Trustee, the filing by any party litigant in such suit of an undertaking to pay
the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees, against any party
litigant in such suit, having due regard to the merits and good faith of the
claims or defenses made by such party litigant; but the provisions of this
Section shall not apply to (a) any suit instituted by the Indenture Trustee,
(b) any suit instituted by any Noteholder, or group of Noteholders, in each
case holding in the aggregate more than 10% of the aggregate outstanding
principal amount of the Outstanding Notes or (c) any suit instituted by any
Noteholder for the enforcement of the payment of principal of or interest on
any Note on or after the respective due dates expressed in such Note and in
this Indenture (or, in the case of redemption, on or after the Redemption
Date).

     SECTION 5.14 Waiver of Stay or Extension Laws. The Issuer covenants (to
the extent that it may lawfully do so) that it will not at any time insist
upon, or plead or in any manner whatsoever, claim or take the benefit or
advantage of, any stay or extension law wherever enacted, now or at any time
hereafter in force, that may affect the covenants or the performance of this
Indenture; and the Issuer (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that
it will not hinder, delay or impede the execution of any power herein granted
to the Indenture Trustee, but will suffer and permit the execution of every
such power as though no such law had been enacted.

     SECTION 5.15 Action on Notes. The Indenture Trustee’s right to seek and
recover judgment on the Notes or under this Indenture shall not be affected by
the seeking, obtaining or application of any other relief under or with respect
to this Indenture. Neither the lien of this Indenture nor any rights or
remedies of the Indenture Trustee or the Noteholders shall be impaired by the
recovery of any judgment by the Indenture Trustee against the Issuer or by the
levy of any execution under such judgment upon any portion of the Trust Estate
or upon any of the assets of the Issuer. Any money or property collected by
the Indenture Trustee shall be applied in accordance with Section 5.4(b), if
the maturity of the Notes has been accelerated pursuant to Section 5.2, or
Section 4.4 of the Sale and Servicing Agreement and Section 8.2 of this
Indenture, if the maturity of the Notes has not been accelerated.

     SECTION 5.16 Performance and Enforcement of Certain Obligations. (a)
Promptly following a request from the Indenture Trustee to do so, the Issuer
shall take all such lawful action as the Indenture Trustee may request to
compel or secure the performance and observance (i) by the Seller and the
Servicer, as applicable, of each of their obligations to the Issuer under or in
connection with the Sale and Servicing Agreement, or (ii) by the Seller or
VCI, as applicable, of each of their obligations under or in connection with
the Purchase Agreement, in each case, in accordance with the terms thereof, and
to exercise any and all rights, remedies, powers and privileges lawfully
available to the Issuer under or in connection with the Sale and Servicing
Agreement and the Purchase Agreement, as the case may be, to the extent and in
the manner directed by the Indenture Trustee, including the transmission of
notices of default on the part of the Seller, the Servicer or VCI thereunder
and the institution of legal or administrative actions or proceedings to compel
or secure performance by the Seller or the Servicer of each of their
obligations under the Sale and Servicing Agreement or by the Seller or VCI, as
applicable, of each of their obligations under or in connection with the
Purchase Agreement.

	 	 	 
	 	28	2003-2 Indenture

 

     (b)  If an Event of Default has occurred and is continuing, the Indenture
Trustee may, and, at the direction (which direction shall be in writing) of the
Holders of a majority of the aggregate outstanding principal amount of the
Controlling Class shall, exercise all rights, remedies, powers, privileges and
claims of the Issuer against the Seller or the Servicer under or in connection
with the Sale and Servicing Agreement or against the Seller or VCI under the
Purchase Agreement, including the right or power to take any action to compel
or secure performance or observance by the Seller, the Servicer or VCI of each
of their obligations to the Issuer thereunder and to give any consent, request,
notice, direction, approval, extension or waiver under the Sale and Servicing
Agreement or the Purchase Agreement, as applicable, and any right of the Issuer
to take such action shall be suspended.

     SECTION 5.17 Sale of Collateral. If the Indenture Trustee acts to sell
the Collateral or any part thereof, pursuant to Section 5.4(a), the Indenture
Trustee shall publish a notice in an Authorized Newspaper stating that the
Indenture Trustee intends to effect such a sale in a commercially reasonable
manner and on commercially reasonable terms, which shall include the
solicitation of competitive bids. Following such publication, the Indenture
Trustee shall, unless otherwise prohibited by applicable law from any such
action, sell the Collateral or any part thereof, in such manner and on such
terms as provided above to the highest bidder, provided, however, that the
Indenture Trustee may from time to time postpone any sale by public
announcement made at the time and place of such sale. The Indenture Trustee
shall give notice to the Seller and the Servicer of any proposed sale, and the
Seller, the Servicer or any Affiliate thereof shall be permitted to bid for the
Collateral at any such sale. The Indenture Trustee may obtain a prior
determination from a conservator, receiver or trustee in bankruptcy of the
Issuer that the terms and manner of any proposed sale are commercially
reasonable. The power to effect any sale of any portion of the Collateral
pursuant to Section 5.4 and this Section 5.17 shall not be exhausted by any one
or more sales as to any portion of the Collateral remaining unsold, but shall
continue unimpaired until the entire Collateral shall have been sold or all
amounts payable on the Notes shall have been paid.

ARTICLE VI THE INDENTURE TRUSTEE

     SECTION 6.1 Duties of the Indenture Trustee. (a) If an Event of Default
has occurred and is continuing, the Indenture Trustee shall exercise the rights
and powers vested in it by this Indenture and shall use the same degree of care
and skill in their exercise as a prudent person would exercise or use under the
circumstances in the conduct of such person’s own affairs.

     (b)  Prior to the occurrence of an Event of Default:

		
	 	     (i) the Indenture Trustee undertakes to perform such duties and only
such duties as are specifically set forth in this Indenture and the other
Transaction Documents to which it is a party and no implied covenants or
obligations shall be read into this Indenture or the other Transaction
Documents against the Indenture Trustee; and
	 
	 	     (ii) in the absence of bad faith on its part, the Indenture Trustee
may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or
opinions furnished to the Indenture Trustee and conforming to the
requirements of this Indenture; but in the case of any such certificates
or opinions

	 	 	 
	 	29	2003-2 Indenture

 

		
	 	which by any provisions hereof are specifically required to be
furnished to the Indenture Trustee, the Indenture Trustee shall examine
the certificates and opinions to determine whether or not they conform to
the requirements of this Indenture (but need not confirm or investigate
the accuracy of mathematical calculations or other facts stated therein).

     (c)  The Indenture Trustee shall not be relieved from liability for its own
negligent action, its own negligent failure to act or its own willful
misconduct, except that:

		
	 	     (i) this paragraph does not limit the effect of paragraph (b) of
this Section;
	 
	 	     (ii) the Indenture Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer unless it is proved
that the Indenture Trustee was negligent in ascertaining the pertinent
facts; and
	 
	 	     (iii) the Indenture Trustee shall not be liable with respect to any
action it takes or omits to take in good faith in accordance with a
direction received by it pursuant to Section 5.11.

     (d)  Every provision of this Indenture that in any way relates to the
Indenture Trustee is subject to paragraphs (a), (b) and (c) of this Section.

     (e)  The Indenture Trustee shall not be liable for interest on any money
received by it except as the Indenture Trustee may agree in writing with the
Issuer.

     (f)  Money held in trust by the Indenture Trustee need not be segregated
from other funds except to the extent required by law or the terms of this
Indenture or the Sale and Servicing Agreement.

     (g)  No provision of this Indenture or any other Transaction Document shall
require the Indenture Trustee to expend or risk its own funds or otherwise
incur financial liability in the performance of any of its duties hereunder or
thereunder or in the exercise of any of its rights or powers, if it shall have
reasonable grounds to believe that repayment of such funds or indemnity
satisfactory to it against such risk or liability is not reasonably assured to
it.

     (h)  Every provision of this Indenture and each other Transaction Document
relating to the conduct or affecting the liability of or affording protection
to the Indenture Trustee shall be subject to the provisions of this Section and
to the provisions of the TIA.

     (i)  The Indenture Trustee shall take all actions required to be taken by
the Indenture Trustee under the Sale and Servicing Agreement.

     SECTION 6.2 Rights of the Indenture Trustee. Subject to the provisions of
Section 6.1:

     (a)  The Indenture Trustee may conclusively rely on any document believed
by it to be genuine and to have been signed or presented by the proper person.
The Indenture Trustee need not investigate any fact or matter stated in the
document.

	 	 	 
	 	30	2003-2 Indenture

 

     (b)  Before the Indenture Trustee acts or refrains from acting, it may
require an Officer’s Certificate or an Opinion of Counsel, as applicable. The
Indenture Trustee shall not be liable for any action it takes, suffers or omits
to take in good faith in reliance on such Officer’s Certificate or Opinion of
Counsel.

     (c)  The Indenture Trustee may execute any of the trusts or powers
hereunder or under any of the Transaction Documents to which the Indenture
Trustee is a party or perform any duties hereunder or under any of the
Transaction Documents to which the Indenture Trustee is a party either directly
or by or through agents or attorneys or a custodian or nominee, and the
Indenture Trustee shall not be responsible for any misconduct or negligence on
the part of, or for the supervision of, the Administrator, any co-trustee or
separate trustee appointed in accordance with the provisions of Section 6.10,
or any other such agent, attorney, custodian or nominee appointed with due care
by it hereunder.

     (d)  The Indenture Trustee shall not be liable for any action it takes or
omits to take in good faith which it reasonably believes to be authorized or
within discretion or rights or powers conferred upon it by this Indenture;
provided, however, that the Indenture Trustee’s conduct does not constitute
willful misconduct, negligence or bad faith.

     (e)  The Indenture Trustee may consult with counsel, and the advice or
opinion of counsel with respect to legal matters relating to this Indenture,
the Notes and any Transaction Documents to which the Indenture Trustee is a
party shall be full and complete authorization and protection from liability in
respect to any action taken, omitted or suffered by it hereunder in good faith
and in accordance with the advice or opinion of such counsel.

     (f)  The Indenture Trustee shall be under no obligation to exercise any of
the rights or powers vested in it by this Indenture or to institute, conduct or
defend any litigation under this Indenture or in relation to this Indenture or
to honor the request or direction of any of the Noteholders pursuant to this
Indenture unless such Noteholders shall have offered to the Indenture Trustee
reasonable security or indemnity satisfactory to the Indenture Trustee against
the reasonable costs, expenses, disbursements, advances and liabilities that
might be incurred by it, its agents and its counsel in compliance with such
request or direction.

     (g)  The Indenture Trustee shall not be deemed to have notice of any
Default or Event of Default unless a Responsible Officer of the Indenture
Trustee has actual knowledge thereof or unless written notice of any event
which is in fact such a default is received by the Indenture Trustee at the
Corporate Trust Office of the Indenture Trustee, and such notice references the
Notes and this Indenture.

     SECTION 6.3 Individual Rights of the Indenture Trustee. Subject to
Section 310 of the TIA, the Indenture Trustee in its individual or any other
capacity may become the owner or pledgee of Notes and may otherwise deal with
the Seller, the Owner Trustee, the Administrator and their respective
Affiliates with the same rights it would have if it were not the Indenture
Trustee, and the Seller, the Owner Trustee, the Administrator and their
respective Affiliates may maintain normal commercial banking and investment
banking relationships with the Indenture Trustee and its Affiliates. Any
Paying Agent, Note Registrar, co-registrar, co-paying agent, co-

	 	 	 
	 	31	2003-2 Indenture

 

trustee or separate trustee may do the same with like rights. However, the
Indenture Trustee must comply with Section 6.11.

     SECTION 6.4 The Indenture Trustee’s Disclaimer. The Indenture Trustee
shall not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Notes, shall not be accountable for the
Issuer’s use of the proceeds from the Notes, and shall not be responsible for
any statement of the Issuer in the Indenture or in any document issued in
connection with the sale of the Notes or in the Notes, all of which shall be
taken as the statements of the Issuer, other than the Indenture Trustee’s
certificate of authentication.

     SECTION 6.5 Notice of Defaults. If a Default occurs and is continuing and
if it is either actually known by a Responsible Officer of the Indenture
Trustee or written notice of the existence thereof has been delivered to a
Responsible Officer of the Indenture Trustee, the Indenture Trustee shall mail
to each Noteholder and the Rating Agencies notice of the Default within 90 days
after such knowledge or notice occurs. Except in the case of a Default in
payment of principal of or interest on any Note (including payments pursuant to
the mandatory redemption provisions of such Note), the Indenture Trustee may
withhold the notice if and so long as a committee of its Responsible Officers
in good faith determines that withholding the notice is in the interests of
Noteholders.

     SECTION 6.6 Reports by the Indenture Trustee to Noteholders. The
Indenture Trustee, at the expense of the Issuer, shall deliver to each
Noteholder, not later than the latest date permitted by law, such information
as may be required by law to enable such Holder to prepare its federal and
state income tax returns.

     SECTION 6.7 Compensation and Indemnity. The Issuer shall cause the
Servicer pursuant to the Sale and Servicing Agreement to, (i) pay to the
Indenture Trustee from time to time such compensation as the Servicer and the
Indenture Trustee shall from time to time agree in writing for services
rendered by the Indenture Trustee hereunder in accordance with a fee letter
between the Servicer and the Indenture Trustee, (ii) reimburse the Indenture
Trustee for all reasonable expenses, advances and disbursements reasonably
incurred by it in connection with the performance of its duties as Indenture
Trustee and (iii) indemnify the Indenture Trustee for, and hold it harmless
against, any and all loss, liability or expense (including reasonable
attorneys’ fees) incurred by it in connection with the administration of the
trust or trusts hereunder or the performance of its duties as Indenture
Trustee. The Indenture Trustee’s compensation shall not be limited by any law
on compensation of a trustee of an express trust. The Indenture Trustee shall
notify the Issuer and the Servicer promptly of any claim for which it may seek
indemnity. Failure by the Indenture Trustee to so notify the Issuer and the
Servicer shall not relieve the Issuer or the Servicer of its obligations
hereunder. The Issuer shall, or shall cause the Servicer to, defend any such
claim, and the Indenture Trustee may have separate counsel and the Issuer
shall, or shall cause the Servicer to, pay the fees and expenses of such
counsel. The Indenture Trustee shall not be indemnified by the Administrator,
the Issuer, the Transferor or the Servicer against any loss, liability or
expense incurred by it through its own willful misconduct, negligence or bad
faith, except that the Indenture Trustee shall not be liable (i) for any error
of judgment made by it in good faith unless it is proved that the Indenture
Trustee was negligent in ascertaining the pertinent facts, (ii) with respect to
any action it takes or omits to take in good faith in accordance with a
direction received by it from the Noteholders in

	 	 	 
	 	32	2003-2 Indenture

 

accordance with the terms of this Indenture and (iii) for interest on any
money received by it except as the Indenture Trustee and the Issuer may agree
in writing.

     The compensation and indemnity obligations to the Indenture Trustee
pursuant to this Section shall survive the discharge of this Indenture. When
the Indenture Trustee incurs expenses after the occurrence of an Event of
Default set forth in Section 5.1(e) or Section 5.1(f) with respect to the
Issuer, the expenses are intended to constitute expenses of administration
under the Bankruptcy Code or any other applicable federal or state bankruptcy,
insolvency or similar law.

     SECTION 6.8 Removal, Resignation and Replacement of the Indenture Trustee.
The Indenture Trustee may resign at any time by so notifying the Issuer, the
Administrator, the Servicer and each Rating Agency. The Holders of a majority
of the aggregate outstanding principal amount of the Controlling Class may
remove the Indenture Trustee without cause by so notifying the Indenture
Trustee and the Issuer, and following that removal may appoint a successor to
the Indenture Trustee. The Issuer shall remove the Indenture Trustee if:

		
	 	     (a) the Indenture Trustee fails to comply with Section 6.11;
	 
	 	     (b) a Bankruptcy Event occurs with respect to the Indenture
Trustee;
	 
	 	     (c) a receiver or other public officer takes charge of the
Indenture Trustee or its property; or
	 
	 	     (d) the Indenture Trustee otherwise becomes incapable of
acting.

     If the Indenture Trustee resigns or is removed or if a vacancy exists in
the office of the Indenture Trustee for any reason (the Indenture Trustee in
such event being referred to herein as the retiring Indenture Trustee), the
Issuer shall promptly appoint a successor Indenture Trustee which satisfies the
requirements set forth in Section 6.11.

     A successor Indenture Trustee shall deliver a written acceptance of its
appointment to the retiring Indenture Trustee and to the Issuer. Thereupon the
resignation or removal of the retiring Indenture Trustee shall become
effective, and the successor Indenture Trustee, without any further act, deed
or conveyance, shall have all the rights, powers and duties of the Indenture
Trustee under this Indenture subject to satisfaction of the Rating Agency
Condition. The successor Indenture Trustee shall mail a notice of its
succession to Noteholders. The retiring Indenture Trustee shall promptly
transfer all property held by it as the Indenture Trustee to the successor
Indenture Trustee.

     If a successor Indenture Trustee does not take office within 60 days after
the retiring Indenture Trustee resigns or is removed, the retiring Indenture
Trustee, the Issuer or the Holders of a majority of the aggregate outstanding
principal amount of the Controlling Class may petition any court of competent
jurisdiction, at the expense of the Issuer, for the appointment of a successor
Indenture Trustee.

	 	 	 
	 	33	2003-2 Indenture

 

     If the Indenture Trustee fails to comply with Section 6.11, any Noteholder
may petition any court of competent jurisdiction for the removal of the
Indenture Trustee and the appointment of a successor Indenture Trustee.

     Any resignation or removal of the Indenture Trustee and appointment of a
successor Indenture Trustee pursuant to any of the provisions of this Section
shall not become effective until acceptance of appointment by the successor
Indenture Trustee pursuant to this Section 6.8 and payment of all fees and
expenses owed to the outgoing Indenture Trustee.

     Notwithstanding the resignation or removal of the Indenture Trustee
pursuant to this Section, the Issuer’s and the Administrator’s obligations
under Section 6.7 shall continue for the benefit of the retiring Indenture
Trustee.

     The Indenture Trustee shall not be liable for the acts or omissions of any
successor Indenture Trustee.

     SECTION 6.9 Successor Indenture Trustee by Merger. Subject to Section
6.11, if the Indenture Trustee consolidates with, merges or converts into, or
transfers all or substantially all its corporate trust business or assets to,
another corporation or banking association, the resulting, surviving or
transferee corporation without any further act shall be the successor Indenture
Trustee, provided that such corporation or banking association shall be
otherwise qualified and eligible under Section 6.11. The Indenture Trustee
shall provide each Rating Agency and the Administrator prior written notice of
any such transaction.

     In case at the time such successor or successors by merger, conversion or
consolidation to the Indenture Trustee shall succeed to the trusts created by
this Indenture any of the Notes shall have been authenticated but not
delivered, any such successor to the Indenture Trustee may adopt the
certificate of authentication of any predecessor trustee, and deliver such
Notes so authenticated; and in case at that time any of the Notes shall not
have been authenticated, any successor to the Indenture Trustee may
authenticate such Notes either in the name of any predecessor hereunder or in
the name of the successor to the Indenture Trustee.

     SECTION 6.10 Appointment of Co-Indenture Trustee or Separate Indenture
Trustee. (a) Notwithstanding any other provisions of this Indenture, at any
time, after delivering written notice to the Administrator, for the purpose of
meeting any legal requirement of any jurisdiction in which any part of the
Trust Estate may at the time be located, the Indenture Trustee and the
Administrator acting jointly shall have the power and may execute and deliver
all instruments to appoint one or more Persons to act as a co-trustee or
co-trustees, or separate trustee or separate trustees, of all or any part of
the Trust Estate, and to vest in such Person or Persons, in such capacity and
for the benefit of the Noteholders, such title to the Trust Estate, or any part
hereof, and, subject to the other provisions of this Section, such powers,
duties, obligations, rights and trusts as the Indenture Trustee and the
Administrator may consider necessary or desirable. No co-trustee or separate
trustee hereunder shall be required to meet the terms of eligibility as a
successor trustee under Section 6.11 and no notice to Noteholders of the
appointment of any co-trustee or separate trustee shall be required under
Section 6.8.

	 	 	 
	 	34	2003-2 Indenture

 

     (b)  Every separate trustee and co-trustee shall, to the extent permitted
by law, be appointed and act subject to the following provisions and
conditions:

		
	 	     (i) all rights, powers, duties and obligations conferred or imposed
upon the Indenture Trustee shall be conferred or imposed upon and
exercised or performed by the Indenture Trustee and such separate trustee
or co-trustee jointly (it being intended that such separate trustee or
co-trustee is not authorized to act separately without the Indenture
Trustee joining in such act), except to the extent that under any law of
any jurisdiction in which any particular act or acts are to be performed
the Indenture Trustee shall be incompetent or unqualified to perform such
act or acts, in which event such rights, powers, duties and obligations
(including the holding of title to the Collateral or any portion thereof
in any such jurisdiction) shall be exercised and performed singly by such
separate trustee or co-trustee, but solely at the direction of the
Indenture Trustee;
	 
	 	     (ii) no separate trustee or co-trustee hereunder shall be personally
liable by reason of any act or omission of any other trustee hereunder,
including acts or omissions of predecessor or successor trustees; and
	 
	 	     (iii) the Indenture Trustee and the Administrator may at any time
accept the resignation of or, acting jointly, remove any separate trustee
or co-trustee.

     (c)  Any notice, request or other writing given to the Indenture Trustee
shall be deemed to have been given to each of then separate trustees and
co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Indenture and
the conditions of this Article VI. Each separate trustee and co-trustee, upon
its acceptance of the trusts conferred, shall be vested with the estates or
property specified in its instrument of appointment, either jointly with the
Indenture Trustee or separately, as may be provided therein, subject to all the
provisions of this Indenture, specifically including every provision of this
Indenture relating to the conduct of, affecting the liability of, or affording
protection to, the Indenture Trustee. Every such instrument shall be filed
with the Indenture Trustee and a copy thereof given to the Administrator.

     (d)  Any separate trustee or co-trustee may at any time constitute the
Indenture Trustee its agent or attorney-in-fact with full power and authority,
to the extent not prohibited by law, to do any lawful act under or in respect
of this Indenture on its behalf and in its name. If any separate trustee or
co-trustee shall die, become incapable of acting, resign or be removed, all of
its estates, properties, rights, remedies and trusts shall vest in and be
exercised by the Indenture Trustee, to the extent permitted by law, without the
appointment of a new or successor trustee. Notwithstanding anything to the
contrary in this Indenture, the appointment of any separate trustee or
co-trustee shall not relieve the Indenture Trustee of its obligations and
duties under this Indenture.

     SECTION 6.11 Eligibility; Disqualification. The Indenture Trustee shall
at all times satisfy the requirements of TIA Section 310(a) and, in addition,
shall have a combined capital and surplus of at least $50,000,000 as set forth
in its most recent published annual report of condition and shall have a long
term debt rating of investment grade or better by each Rating Agency or shall
otherwise be acceptable to each Rating Agency. The Indenture Trustee shall

	 	 	 
	 	35	2003-2 Indenture

 

also satisfy the requirements of TIA Section 310(b). Neither the Issuer
nor any Affiliate of the Issuer may serve as Indenture Trustee.

     SECTION 6.12 Preferential Collection of Claims Against the Issuer. The
Indenture Trustee shall comply with TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). Any Indenture Trustee who has
resigned or been removed shall be subject to TIA Section 311(a) to the extent
indicated.

     SECTION 6.13 Representations and Warranties. The Indenture Trustee hereby
makes the following representations and warranties on which the Issuer and the
Noteholders shall rely:

		
	 	     (i) the Indenture Trustee is a New York banking corporation duly
organized, validly existing and in good standing under the laws of New
York; and
	 
	 	     (ii) the Indenture Trustee has full power, authority and legal right
to execute, deliver, and perform this Indenture and shall have taken all
necessary action to authorize the execution, delivery and performance by
it of this Indenture.

ARTICLE VII NOTEHOLDERS’ LISTS AND REPORTS

     SECTION 7.1 The Issuer to Furnish the Indenture Trustee Names and
Addresses of Noteholders. The Issuer shall furnish or cause to be furnished to
the Indenture Trustee (a) not more than five days after each Record Date, a
list, in such form as the Indenture Trustee may reasonably require, of the
names and addresses of the Noteholders as of such Record Date, and (b) at such
other times as the Indenture Trustee may request in writing, within 30 days
after receipt by the Issuer of any such request, a list of similar form and
content as of a date not more than ten days prior to the time such list is
furnished; provided, however, that so long as (i) the Indenture Trustee is the
Note Registrar, or (ii) the Notes are issued as Book-Entry Notes, no such list
shall be required to be furnished to the Indenture Trustee.

     SECTION 7.2 Preservation of Information; Communications to Noteholders.
(a) The Indenture Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Noteholders contained in
the most recent list furnished to the Indenture Trustee as provided in Section
7.1 and the names and addresses of Noteholders received by the Indenture
Trustee in its capacity as the Note Registrar. The Indenture Trustee may
destroy any list furnished to it as provided in such Section 7.1 upon receipt
of a new list so furnished; provided, however, that so long as the Indenture
Trustee is the Note Registrar or the Notes are issued as Book-Entry Notes, no
such list shall be required to be preserved or maintained.

     (b)  The Noteholders may communicate pursuant to TIA Section 312(b) with
other Noteholders with respect to their rights under this Indenture or under
the Notes. Upon receipt by the Indenture Trustee of any request by three or
more Noteholders or by one or more Noteholders of Notes evidencing not less
than 25% of the aggregate outstanding principal amount of the Outstanding Notes
to receive a copy of the current list of Noteholders (whether or not made
pursuant to TIA Section 312(b)), the Indenture Trustee shall promptly notify
the Administrator thereof by providing to the Administrator a copy of such
request and a copy of the list of Noteholders produced in response thereto.

	 	 	 
	 	36	2003-2 Indenture

 

     (c)  The Issuer, the Indenture Trustee and Note Registrar shall have the
protection of TIA Section 312(c).

     SECTION 7.3 Reports by the Indenture Trustee. If required by TIA Section
313(a), within 60 days after each March 31, beginning with March 31, 2004, the
Indenture Trustee shall mail to each Noteholder as required by TIA Section
313(c), a brief report dated as of such date that complies with TIA Section
313(a). The Indenture Trustee also shall comply with TIA Section 313(b). A
copy of each report at the time of its mailing to Noteholders shall be filed by
the Indenture Trustee with the Commission and each stock exchange, if any, on
which the Notes are listed. The Issuer shall notify the Indenture Trustee if
and when the Notes are listed on any stock exchange.

ARTICLE VIII ACCOUNTS, DISBURSEMENTS AND RELEASES

     SECTION 8.1 Collection of Money. Except as otherwise expressly provided
herein, the Indenture Trustee may demand payment or delivery of, and shall
receive and collect, directly and without intervention or assistance of any
fiscal agent or other intermediary, all money and other property payable to or
receivable by the Indenture Trustee pursuant to this Indenture and the Sale and
Servicing Agreement. The Indenture Trustee shall apply all such money received
by it as provided in this Indenture. Except as otherwise expressly provided in
this Indenture, if any default occurs in the making of any payment or
performance under any agreement or instrument that is part of the Collateral,
the Indenture Trustee may take such action as may be appropriate to enforce
such payment or performance, including the institution and prosecution of
appropriate proceedings. Any such action shall be without prejudice to any
right to claim a Default or Event of Default under this Indenture and any right
to proceed thereafter as provided in Article V.

     SECTION 8.2 Trust Accounts. (a) Trust Accounts. On or prior to the
Closing Date, the Issuer shall cause the Servicer to establish, in the name of
Indenture Trustee, the Trust Accounts as provided in Section 4.1 of the Sale
and Servicing Agreement.

     (b)  On or before each Payment Date, the Issuer shall cause (i) the
Servicer to deposit all Collections and Advances and (ii) the Servicer, the
Seller or VCI, as applicable, to deposit all Repurchase Prices with respect to
the Collection Period preceding such Payment Date in the Collection Account as
provided in the Sale and Servicing Agreement. On or before each Payment Date,
all amounts required to be withdrawn from the Reserve Account and deposited in
the Collection Account pursuant to Section 4.3 of the Sale and Servicing
Agreement shall be withdrawn by the Indenture Trustee from the Reserve Account
and deposited to the Collection Account.

     (c)  Prior to the acceleration of the Notes pursuant to Section 5.2 of this
Indenture, on each Payment Date and Redemption Date, the Indenture Trustee
shall distribute all amounts on deposit in the Principal Distribution Account
to Noteholders in respect of the Notes to the extent of the funds therein in
the following order of priority:

		
	 	     (i) first, to the Holders of the Class A-1 Notes, until the Class
A-1 Notes are paid in full;

	 	 	 
	 	37	2003-2 Indenture

 

		
	 	     (ii) second, to the Holders of the Class A-2 Notes, until the Class
A-2 Notes are paid in full;
	 
	 	     (iii) third, to the Holders of the Class A-3 Notes, until the Class
A-3 Notes are paid in full;
	 
	 	     (iv) fourth, to the Holders of the Class A-4 Notes, until the Class
A-4 Notes are paid in full; and
	 
	 	     (v) fifth, to the Holders of the Class B Notes, until the Class B
Notes are paid in full.

     SECTION 8.3 General Provisions Regarding Accounts. (a) The funds in the
Trust Accounts shall be invested in Permitted Investments in accordance with
and subject to Section 4.1(b) of the Sale and Servicing Agreement and all
interest and investment income (net of losses and investment expenses) on funds
on deposit (i) in the Collection Account and the Principal Distribution Account
shall be distributed in accordance with the provisions of Section 3.7 of the
Sale and Servicing Agreement and (ii) in the Reserve Account shall be
distributed in accordance with the provisions of Sections 4.3(b) and (d) of the
Sale and Servicing Agreement. The Indenture Trustee shall not be directed to
make any investment of any funds or to sell any investment held in any of the
Trust Accounts unless the security interest Granted and perfected in such
account will continue to be perfected in such investment or the proceeds of
such sale, in either case without any further action by any Person, and, in
connection with any direction to Indenture Trustee to make any such investment
or sale, if requested by Indenture Trustee, the Issuer shall deliver to the
Indenture Trustee an Opinion of Counsel, acceptable to Indenture Trustee, to
such effect.

     (b)  Subject to Section 6.1(c), the Indenture Trustee shall not in any way
be held liable by reason of any insufficiency in any of the Trust Accounts
resulting from any loss on any Permitted Investment included therein, except
for losses attributable to the Indenture Trustee’s failure to make payments on
any such Permitted Investments issued by the Indenture Trustee in its
commercial capacity as principal obligor and not as trustee, in accordance with
their terms.

     (c)  If (i) investment directions shall not have been given in writing by
the Servicer in accordance with Section 4.1(b) of the Sale and Servicing
Agreement for any funds on deposit in the Trust Accounts to the Indenture
Trustee by 11:00 a.m., New York City time (or such other time as may be agreed
by the Servicer and the Indenture Trustee), on any Business Day or (ii) a
Default or Event of Default shall have occurred and be continuing with respect
to the Notes but the Notes shall not have been declared due and payable
pursuant to Section 5.2 or (iii) if the Notes shall have been declared due and
payable following an Event of Default and amounts collected or received from
the Trust Estate are being applied in accordance with Section 5.4 as if there
had not been such a declaration, then the Indenture Trustee shall, to the
fullest extent practicable, invest and reinvest funds in the Trust Accounts in
one or more Permitted Investments in accordance with the standing instructions
most recently given by the Servicer.

     SECTION 8.4 Release of Collateral. (a) Subject to the payment of its
fees and expenses pursuant to Section 6.7, the Indenture Trustee may if
permitted by and in accordance with the

	 	 	 
	 	38	2003-2 Indenture

 

terms hereof, and when required by the provisions of this Indenture shall,
execute instruments to release property from the lien of this Indenture, or
convey the Indenture Trustee’s interest in the same, in a manner and under
circumstances that are not inconsistent with the provisions of this Indenture
or such other document. No party relying upon an instrument executed by the
Indenture Trustee as provided in this Article VIII shall be bound to ascertain
the Indenture Trustee’s authority, inquire into the satisfaction of any
conditions precedent or see to the application of any monies.

     (b)  The Indenture Trustee shall, at such time as there are no Notes
Outstanding and all sums due the Indenture Trustee pursuant to Section 6.7 have
been paid, release any remaining portion of the Collateral that secured the
Notes from the lien of this Indenture and release to the Issuer or any other
Person entitled thereto any funds then on deposit in the Trust Accounts. Such
release shall include release of the lien of this Indenture and transfer of
dominion and control over the Trust Accounts to the Issuer or its designee. The
Indenture Trustee shall release property from the lien of this Indenture
pursuant to this Section only upon receipt of an Issuer Request accompanied by
an Officer’s Certificate, an Opinion of Counsel and (if required by the TIA)
Independent Certificates in accordance with TIA Sections 314(c) and 314(d)(1)
meeting the applicable requirements of Section 11.1.

     Each Noteholder or Note Owner, by its acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note, acknowledges that from time
to time the Indenture Trustee shall release the lien of this Indenture (or
shall be deemed to automatically release the lien of this Indenture without any
further action) on any Receivable to be sold to (i) the Seller in accordance
with Section 2.3 of the Sale and Servicing Agreement, (ii) to Servicer in
accordance with Section 3.6 of the Sale and Servicing Agreement and (iii) to
VCI in accordance with Section 3.3 of the Purchase Agreement.

     SECTION 8.5 Opinion of Counsel. The Indenture Trustee shall receive at
least seven days’ notice when requested by Issuer to take any action pursuant
to Section 8.4(a), accompanied by copies of any instruments involved, and
Indenture Trustee may also require as a condition to such action, an Opinion of
Counsel, in form and substance satisfactory to Indenture Trustee, stating the
legal effect of any such action, outlining the steps required to complete the
same, and concluding that all conditions precedent to the taking of such action
have been complied with and such action will not materially and adversely
impair the security for the Notes or the rights of the Noteholders in
contravention of the provisions of this Indenture; provided that such Opinion
of Counsel shall not be required to express an opinion as to the fair value of
the Trust Estate. Counsel rendering any such opinion may rely, as to factual
matters, without independent investigation, on the accuracy and validity of any
certificate or other instrument delivered to Indenture Trustee in connection
with any such action.

ARTICLE IX SUPPLEMENTAL INDENTURES

     SECTION 9.1 Supplemental Indentures Without Consent of Noteholders. (a)
Without the consent of the Noteholders but with prior notice to each Rating
Agency, the Issuer and the Indenture Trustee, when authorized by an Issuer
Order, at any time and from time to time, may enter into one or more indentures
supplemental hereto (which shall conform to the provisions of

	 	 	 
	 	39	2003-2 Indenture

 

the Trust Indenture Act as in force at the date of the execution thereof),
in form satisfactory to the Indenture Trustee, for any of the following
purposes:

		
	 	     (i) to correct or amplify the description of any property at any
time subject to the lien of this Indenture, or better to assure, convey
and confirm unto the Indenture Trustee any property subject or required
to be subjected to the lien of this Indenture, or to subject additional
property to the lien of this Indenture;
	 
	 	     (ii) to evidence the succession, in compliance with the applicable
provisions hereof, of another person to the Issuer, and the assumption by
any such successor of the covenants of the Issuer contained herein and in
the Notes;
	 
	 	     (iii) to add to the covenants of the Issuer, for the benefit of the
Noteholders, or to surrender any right or power herein conferred upon the
Issuer;
	 
	 	     (iv) to convey, transfer, assign, mortgage or pledge any property to
or with the Indenture Trustee;
	 
	 	     (v) to cure any ambiguity, to correct or to supplement any provision
herein or in any supplemental indenture which may be inconsistent with
any other provision herein or in any supplemental indenture or to make
any other provisions with respect to matters or questions arising under
this Indenture or in any supplemental indenture; provided that such
action shall not materially and adversely affect the interests of the
Noteholders;
	 
	 	     (vi) to evidence and provide for the acceptance of the appointment
hereunder by a successor trustee with respect to the Notes and to add to
or change any of the provisions of this Indenture as shall be necessary
to facilitate the administration of the trusts hereunder by more than one
trustee, pursuant to the requirements of Article VI;
	 
	 	     (vii) to modify, eliminate or add to the provisions of this
Indenture to such extent as shall be necessary to effect the
qualification of this Indenture under the TIA or under any similar
federal statute hereafter enacted and to add to this Indenture such other
provisions as may be expressly required by the TIA; or
	 
	 	     (viii) to add, modify or eliminate such provisions as may be
necessary or advisable in order to enable (a) the transfer to the Issuer
of all or any portion of the Receivables to be derecognized under GAAP by
the Seller to the Issuer, (b) the Issuer to avoid becoming a member of
Seller’s consolidated group under GAAP or (c) the Seller or any of its
Affiliates to otherwise comply with or obtain more favorable treatment
under any law or regulation or any accounting rule or principle; it being
a condition to any such amendment that the Rating Agency Condition be
satisfied.

     The Indenture Trustee is hereby authorized to join in the execution of any
such supplemental indenture and to make any further appropriate agreements and
stipulations that may be therein contained.

     (b)  The Issuer and the Indenture Trustee, when authorized by an Issuer
Order, may, also without the consent of any Noteholder, enter into an indenture
or indentures supplemental hereto

	 	 	 
	 	40	2003-2 Indenture

 

for the purpose of adding any provisions to, or changing in any manner or
eliminating any of the provisions of, this Indenture or of modifying in any
manner (other than the modifications set forth in Section 9.2, which require
consent of each Noteholder affected thereby) the rights of the Noteholders
under this Indenture; provided (i) that the Rating Agency Condition shall have
been satisfied with respect to such action, and (ii) that such action shall
not, as evidenced by an Opinion of Counsel, (A) materially and adversely
affects the interests of any Noteholder, (B) affect the treatment of the Notes
as debt for federal income tax purposes, or (C) be deemed to cause a taxable
exchange of the Notes for federal income tax purposes.

     SECTION 9.2 Supplemental Indentures with Consent of Noteholders. The
Issuer and the Indenture Trustee, when authorized by an Issuer Order, also may,
with prior notice to the Rating Agencies and with the consent of the Holders of
not less than a majority of the aggregate outstanding principal amount of the
Outstanding Notes, voting together as a single class, by Act of such Holders
delivered to the Issuer and the Indenture Trustee, enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to, or
changing in any manner or eliminating any of the provisions of, this Indenture
or of modifying in any manner the rights of the Noteholders under this
Indenture; provided that no such supplemental indenture shall, without the
consent of the Holder of each Outstanding Note affected thereby:

		
	 	     (i) change the date of payment of any installment of principal
(including, without limitation, the Final Scheduled Payment Date) of or
interest on any Note, or reduce the principal amount thereof, the
interest rate thereon or the Redemption Price with respect thereto,
change the provision of this Indenture relating to the application of
collections on, or the proceeds of the sale of, the Trust Estate to
payment of principal of or interest on the Notes, or change any place of
payment where, or the coin or currency in which, any Note or the interest
thereon is payable, or impair the right to institute suit for the
enforcement of the provisions of this Indenture requiring the application
of funds available therefor, as provided in Article V, to the payment of
any such amount due on the Notes on or after the respective due dates
thereof (or, in the case of redemption, on or after the Redemption Date);
	 
	 	     (ii) reduce the percentage of the aggregate outstanding principal
amount of the Outstanding Notes, the consent of the Holders of which is
required for any such supplemental indenture, or the consent of the
Holders of which is required for any waiver of compliance with certain
provisions of this Indenture or certain defaults hereunder and their
consequences provided for in this Indenture;
	 
	 	     (iii) modify or alter the provisions of the proviso to the
definition of the term “Outstanding”;
	 
	 	     (iv) reduce the percentage of the aggregate outstanding principal
amount of the Outstanding Notes required to direct the Indenture Trustee
to direct the Issuer to sell or liquidate the Trust Estate pursuant to
Section 5.4 if the proceeds of such sale would be insufficient to pay the
aggregate outstanding principal amount of the Outstanding Notes plus
accrued but unpaid interest on the Notes;

	 	 	 
	 	41	2003-2 Indenture

 

		
	 	     (v) modify any provision of this Section in any respect adverse to
the interests of the Noteholders except to increase any percentage
specified herein or to provide that certain additional provisions of this
Indenture or the Transaction Documents cannot be modified or waived
without the consent of the Holder of each Outstanding Note affected
thereby;
	 
	 	     (vi) modify any of the provisions of this Indenture in such manner
as to affect the calculation of the amount of any payment of interest or
principal due on any Note on any Payment Date (including the calculation
of any of the individual components of such calculation) or to affect the
rights of the Noteholders to the benefit of any provisions for the
mandatory redemption of the Notes contained herein;
	 
	 	     (vii) permit the creation of any Lien ranking prior to or on a
parity with the lien of this Indenture with respect to any part of the
Trust Estate or, except as otherwise permitted or contemplated herein or
in the Transaction Documents, terminate the lien of this Indenture on any
property at any time subject hereto or deprive any Noteholder of the
security provided by the lien of this Indenture; or
	 
	 	     (viii) impair the right to institute suit for the enforcement of
payment as provided in Section 5.7.

     Any such supplemental indenture shall be executed only upon delivery of an
Opinion of Counsel to the same effect as in Section 9.1(b)(ii).

     It shall not be necessary for any Act of Noteholders under this Section to
approve the particular form of any proposed supplemental indenture, but it
shall be sufficient if such Act shall approve the substance thereof.

     Promptly after the execution by the Issuer and the Indenture Trustee of
any supplemental indenture pursuant to this Section, the Indenture Trustee
shall mail to the Noteholders to which such amendment or supplemental indenture
relates a notice (to be provided by the Issuer and at the Issuer’s expense)
setting forth in general terms the substance of such supplemental indenture.
Any failure of the Indenture Trustee to mail such notice, or any defect
therein, shall not, however, in any way impair or affect the validity of any
such supplemental indenture.

     SECTION 9.3 Execution of Supplemental Indentures. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the modifications thereby of the trusts created
by this Indenture, the Indenture Trustee shall be entitled to receive, and
subject to Sections 6.1 and 6.2, shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Indenture Trustee may, but shall
not be obligated to, enter into any such supplemental indenture that affects
the Indenture Trustee’s own rights, duties, liabilities or immunities under
this Indenture or otherwise.

     SECTION 9.4 Effect of Supplemental Indenture. Upon the execution of any
supplemental indenture pursuant to the provisions hereof, this Indenture shall
be and be deemed to be modified and amended in accordance therewith with
respect to the Notes affected thereby, and the respective rights, limitations
of rights, obligations, duties, liabilities and immunities

	 	 	 
	 	42	2003-2 Indenture

 

under this Indenture of the Indenture Trustee, the Issuer and the
Noteholders shall thereafter be determined, exercised and enforced hereunder
subject in all respects to such modifications and amendments, and all the terms
and conditions of any such supplemental indenture shall be and be deemed to be
part of the terms and conditions of this Indenture for any and all purposes.

     SECTION 9.5 Conformity With Trust Indenture Act. Every amendment of this
Indenture and every supplemental indenture executed pursuant to this Article IX
shall conform to the requirements of the Trust Indenture Act as then in effect
so long as this Indenture shall then be qualified under the Trust Indenture
Act.

     SECTION 9.6 Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and if required by the Indenture Trustee
shall, bear a notation in form approved by the Indenture Trustee as to any
matter provided for in such supplemental indenture. If the Issuer or the
Indenture Trustee shall so determine, new Notes so modified as to conform, in
the opinion of the Indenture Trustee and the Issuer, to any such supplemental
indenture may be prepared and executed by the Issuer and authenticated and
delivered by the Indenture Trustee in exchange for Outstanding Notes.

ARTICLE X REDEMPTION OF NOTES

     SECTION 10.1 Redemption. (a) Each of the Notes is subject to redemption
in whole, but not in part, at the direction of VCI, as Servicer, pursuant to
Section 8.1 of the Sale and Servicing Agreement, on any Payment Date on which
VCI exercises its option to purchase the Trust Estate pursuant to said Section
8.1, for a purchase price equal to the Optional Purchase Price, which amount
shall be deposited by the Servicer into the Collection Account on the
Redemption Date.

     (b)  Each of the Notes is subject to redemption in whole, but not in part,
on any Payment Date on which the sum of the amounts in the Reserve Account and
the remaining Available Funds after the payments under clauses first through
third of Section 4.4(a) of the Sale and Servicing Agreement would be sufficient
to pay in full the aggregate unpaid Note Balance of all of the Outstanding
Notes as determined by the Servicer. On such Payment Date, (i) the Indenture
Trustee upon written direction from the Servicer shall transfer all amounts on
deposit in the Reserve Account to the Collection Account and (ii) the
Outstanding Notes shall be redeemed in whole, but not in part.

     (c)  If the Notes are to be redeemed pursuant to Sections 10.1(a) or
10.1(b), the Administrator or the Issuer shall provide at least 20 days’ prior
notice of the redemption of the Notes to the Indenture Trustee and the Owner
Trustee, and the Indenture Trustee shall provide prompt (but not later than 10
days prior to the applicable Redemption Date) notice thereof to the
Noteholders.

     SECTION 10.2 Form of Redemption Notice. Notice of redemption under
Section 10.1 shall be given by the Indenture Trustee by facsimile or by
first-class mail, postage prepaid, transmitted or mailed prior to the
applicable Redemption Date to each Holder of Notes as of the

	 	 	 
	 	43	2003-2 Indenture

 

close of business on the Record Date preceding the applicable Redemption
Date, at such Holder’s address appearing in the Note Register.

		
	 	     All notices of redemption shall state:
	 
	 	     (i) the Redemption Date;
	 
	 	     (ii) the Redemption Price;
	 
	 	     (iii) that the Record Date otherwise applicable to such Redemption
Date is not applicable and that payments shall be made only upon
presentation and surrender of such Notes, and the place where such Notes
are to be surrendered for payment of the Redemption Price (which shall be
the office or agency of the Issuer to be maintained as provided in
Section 3.2);
	 
	 	     (iv) that interest on the Notes shall cease to accrue on the
Redemption Date; and
	 
	 	     (v) the CUSIP numbers (if applicable) for such Notes.

     Notice of redemption of the Notes shall be given by the Indenture Trustee
in the name and at the expense of the Issuer. In addition, the Issuer shall
notify each Rating Agency upon redemption of the Notes. Failure to give notice
of redemption, or any defect therein, to any Noteholder shall not impair or
affect the validity of the redemption of any Note.

     SECTION 10.3 Notes Payable on Redemption Date. The Notes to be redeemed
shall, following notice of redemption as required by Section 10.2 (in the case
of redemption pursuant to Section 10.1), on the Redemption Date become due and
payable at the Redemption Price and (unless the Issuer shall default in the
payment of the Redemption Price) no interest shall accrue on the Redemption
Price for any period after the date to which accrued interest is calculated for
purposes of calculating the Redemption Price.

ARTICLE XI MISCELLANEOUS

     SECTION 11.1 Compliance Certificates and Opinions, etc. (a) Upon any
application or request by the Issuer to the Indenture Trustee to take any
action under any provision of this Indenture, the Issuer shall furnish to the
Indenture Trustee (i) an Officer’s Certificate stating that all conditions
precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with that satisfies TIA Section 314(c)(1), (ii) an
Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent, if any, have been complied with that satisfies TIA
Section 314(c)(2) and (iii) if required by the TIA in the case of condition
precedent compliance with which is subject to verification by accountants, a
certificate or opinion of an accountant that satisfies TIA Section 314(c)(3),
except that, in the case of any such application or request as to which the
furnishing of such documents is specifically required by any provision of this
Indenture, no additional certificate or opinion need be furnished.

     Every certificate or opinion in accordance with TIA Section 314(e) with
respect to compliance with a condition or covenant provided for in this
Indenture shall include:

	 	 	 
	 	44	2003-2 Indenture

 

		
	 	     (i) a statement that each signatory of such certificate or opinion
has read or has caused to be read such covenant or condition and the
definitions herein relating thereto;
	 
	 	     (ii) a brief statement as to the nature and scope of the examination
or investigation upon which the statements or opinions contained in such
certificate or opinion are based;
	 
	 	     (iii) a statement that, in the opinion of each such signatory, such
signatory has made such examination or investigation as is necessary to
enable such signatory to express an informed opinion as to whether or not
such covenant or condition has been complied with; and
	 
	 	     (iv) a statement as to whether, in the opinion of each such
signatory such condition or covenant has been complied with.

     (b)  (i) Prior to the deposit of any Collateral or other property or
securities with the Indenture Trustee that is to be made the basis for the
release of any property or securities subject to the lien of this Indenture,
the Issuer shall, in addition to any obligation imposed in Section 11.1(a) or
elsewhere in this Indenture, furnish to the Indenture Trustee an Officer’s
Certificate certifying or stating the opinion of each person signing such
certificate as to the fair value in accordance with TIA Section 314(d) (within
90 days of such deposit) to the Issuer of the Collateral or other property or
securities to be so deposited.

     (ii)  Whenever the Issuer is required to furnish to the Indenture Trustee an
Officer’s Certificate certifying or stating the opinion of any signer thereof
as to the matters described in clause (i) above, the Issuer shall also deliver
to the Indenture Trustee an Independent Certificate as to the same matters, if
the fair value in accordance with TIA Section 314(d) to the Issuer of the
property or securities to be so deposited and of all other such securities made
the basis of any such withdrawal or release since the commencement of the
then-current fiscal year of the Issuer, as set forth in the certificates
delivered pursuant to clause (i) and this clause (ii), is 10% or more of the
aggregate outstanding principal amount of the Outstanding Notes, but such a
certificate need not be furnished with respect to any securities so deposited,
if the fair value thereof to the Issuer as set forth in the related Officer’s
Certificate is less than $25,000 or less than one percent of the aggregate
outstanding principal amount of the Outstanding Notes.

     (iii)  Other than as contemplated by Section 11.1(b)(v), whenever any
property or securities are to be released from the lien of this Indenture, the
Issuer shall also furnish to the Indenture Trustee an Officer’s Certificate
certifying or stating the opinion of each person signing such certificate as to
the fair value (within 90 days of such release) of the property or securities
proposed to be released and stating that in the opinion of such person the
proposed release will not impair the security under this Indenture in
contravention of the provisions hereof.

     (iv)  Whenever the Issuer is required to furnish to the Indenture Trustee
an Officer’s Certificate certifying or stating the opinion of any signer
thereof as to the matters described in clause (iii) above, the Issuer shall
also furnish to the Indenture Trustee an Independent Certificate as to the same
matters if the fair value of the property or securities and of all other
property other than Purchased Receivables, or securities released from the lien
of this Indenture

	 	 	 
	 	45	2003-2 Indenture

 

since the commencement of the then current calendar year, as set forth in
the certificates required by clause (iii) above and this clause (iv), equals
10% or more of the aggregate outstanding principal amount of the Outstanding
Notes, but such certificate need not be furnished in the case of any release of
property or securities if the fair value thereof as set forth in the related
Officer’s Certificate is less than $25,000 or less than one percent of the then
aggregate outstanding principal amount of the Outstanding Notes.

     (v)  Notwithstanding Section 2.9 or any other provision of this Section,
the Issuer may (A) collect, liquidate, sell or otherwise dispose of Receivables
and Financed Vehicles as and to the extent permitted or required by the
Transaction Documents and (B) make cash payments out of the Trust Accounts as
and to the extent permitted or required by the Transaction Documents.

     SECTION 11.2 Form of Documents Delivered to the Indenture Trustee. In any
case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other
such Persons as to other matters, and any such Person may certify or give an
opinion as to such matters in one or several documents.

     Any certificate or opinion of an Authorized Officer of the Issuer may be
based, insofar as it relates to legal matters, upon a certificate or opinion
of, or representations by, counsel, unless such officer knows, or in the
exercise of reasonable care should know, that the certificate or opinion or
representations with respect to the matters upon which his or her certificate
or opinion is based are erroneous. Any such certificate of an Authorized
Officer or Opinion of Counsel may be based, insofar as it relates to factual
matters, upon a certificate or opinion of, or representations by, an officer or
officers of the Servicer, the Seller, the Administrator or the Issuer, stating
that the information with respect to such factual matters is in the possession
of the Servicer, the Seller, the Administrator or the Issuer, unless such
counsel knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to such matters are
erroneous.

     Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

     Whenever in this Indenture, in connection with any application or
certificate or report to the Indenture Trustee, it is provided that the Issuer
shall deliver any document as a condition of the granting of such application,
or as evidence of the Issuer’s compliance with any term hereof, it is intended
that the truth and accuracy, at the time of the granting of such application or
at the effective date of such certificate or report (as the case may be), of
the facts and opinions stated in such document shall in such case be conditions
precedent to the right of the Issuer to have such application granted or to the
sufficiency of such certificate or report. The foregoing shall not, however,
be construed to affect the Indenture Trustee’s right to rely upon the truth and
accuracy of any statement or opinion contained in any such document as provided
in Section 6.1(b).

	 	 	 
	 	46	2003-2 Indenture

 

     SECTION 11.3 Acts of Noteholders. (a) Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture
to be given or taken by Noteholders may be embodied in and evidenced by one or
more instruments of substantially similar tenor signed by such Noteholders in
person or by agents duly appointed in writing; and except as herein otherwise
expressly provided such action shall become effective when such instrument or
instruments are delivered to the Indenture Trustee, and, where it is hereby
expressly required, to the Issuer. Such instrument or instruments (and the
action embodied therein and evidenced thereby) are herein sometimes referred to
as the “Act” of the Noteholders signing such instrument or instruments. Proof
of execution of any such instrument or of a writing appointing any such agent
shall be sufficient for any purpose of this Indenture and (subject to Section
6.1) conclusive in favor of the Indenture Trustee and the Issuer, if made in
the manner provided in this Section.

		
	 	     (b) The fact and date of the execution by any person of any
such instrument or writing may be proved in any manner that the
Indenture Trustee deems sufficient.
	 
	 	     (c) The ownership of Notes shall be proved by the Note
Register.
	 
	 	     (d) Any request, demand, authorization, direction, notice,
consent, waiver or other action by any Noteholder shall bind the
Holder of every Note issued upon the registration thereof or in
exchange therefor or in lieu thereof, in respect of anything done,
omitted or suffered to be done by the Indenture Trustee or the
Issuer in reliance thereon, whether or not notation of such action
is made upon such Note.

     SECTION 11.4 Notices. All demands, notices and communications hereunder
shall be in writing and shall be delivered or mailed by registered or certified
first-class United States mail, postage prepaid, hand delivery, prepaid courier
service, or by telecopier, and addressed in each case as follows: (i) if to
the Issuer, c/o The Bank of New York (Delaware), P.O. Box 6873, White Clay
Center, Route 273, Newark, Delaware 19714, Attention: Kris Gullo, with a copy
to the Administrator, at 3800 Hamlin Road, Auburn Hills, Michigan 48326
(telecopier no. (248) 754-5360), Attention: General Counsel; (ii) if to the
Indenture Trustee, to JPMorgan Chase Bank, 4 New York Plaza,
6th Floor, New
York, New York 10004-2477 (telecopier no. (212) 623-5932), Attention: ITS
Structured Finance Administration – Volkswagen Auto Loan Enhanced Trust 2003-2;
(iii) if to Moody’s, to Moody’s Investors Service, Inc., 99 Church Street, New
York, New York 10007 (telecopier no. (212) 298-7139), Attention: ABS Monitoring
Group; (iv) if to Standard & Poor’s, to Standard & Poor’s Ratings Services, 55
Water Street, New York, New York 10041 (telecopier no. (212) 438-2664),
Attention: Asset Backed Surveillance Group; or (v) at such other address as
shall be designated by any of the foregoing in a written notice to the other
parties hereto. Delivery shall occur only upon receipt or reported tender of
such communication by an officer of the recipient entitled to receive such
notices located at the address of such recipient for notices hereunder.

     SECTION 11.5 Notices to Noteholders; Waiver. Where this Indenture
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class, postage prepaid or via Electronic

	 	 	 
	 	47	2003-2 Indenture

 

Transmission to each Noteholder affected by such event, at his address as
it appears on the Note Register, not later than the latest date, and not
earlier than the earliest date, prescribed for the giving of such notice. In
any case where notice to Noteholders is given by mail, neither the failure to
mail such notice nor any defect in any notice so mailed to any particular
Noteholder shall affect the sufficiency of such notice with respect to other
Noteholders, and any notice that is mailed in the manner herein provided shall
conclusively be presumed to have been duly given.

     Where this Indenture provides for notice in any manner, such notice may be
waived in writing by any Person entitled to receive such notice, either before
or after the event, and such waiver shall be the equivalent of such notice.
Waivers of notice by Noteholders shall be filed with the Indenture Trustee but
such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such a waiver.

     In case, by reason of the suspension of regular mail service as a result
of a strike, work stoppage or similar activity, it shall be impractical to mail
notice of any event to Noteholders when such notice is required to be given
pursuant to any provision of this Indenture, then any manner of giving such
notice as shall be satisfactory to the Indenture Trustee shall be deemed to be
a sufficient giving of such notice.

     Where this Indenture provides for notice to the Rating Agencies, failure
to give such notice shall not affect any other rights or obligations created
hereunder, and shall not under any circumstance constitute a Default or an
Event of Default.

     SECTION 11.6 Alternate Payment and Notice Provisions. Notwithstanding any
provision of this Indenture or any of the Notes to the contrary, the Issuer may
enter into any agreement with any Noteholder providing for a method of payment,
or notice by the Indenture Trustee or any Paying Agent to such Noteholder, that
is different from the methods provided for in this Indenture for such payments
or notices, provided that such methods are reasonable and consented to by the
Indenture Trustee (which consent shall not be unreasonably withheld). The
Issuer will furnish to the Indenture Trustee a copy of each such agreement and
the Indenture Trustee will cause payments to be made and notices to be given in
accordance with such agreements.

     SECTION 11.7 Conflict with Trust Indenture Act. If any provision hereof
limits, qualifies or conflicts with another provision hereof that is required
to be included in this Indenture by any of the provisions of the Trust
Indenture Act, such required provision shall control.

     The provisions of TIA Sections 310 through 317 that impose duties on any
person (including the provisions automatically deemed included herein unless
expressly excluded by this Indenture) are a part of and govern this Indenture,
whether or not physically contained herein.

     SECTION 11.8 Effect of Headings and Table of Contents. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

	 	 	 
	 	48	2003-2 Indenture

 

     SECTION 11.9 Successors and Assigns. All covenants and agreements in this
Indenture and the Notes by the Issuer shall bind its successors and assigns,
whether so expressed or not. All agreements of the Indenture Trustee in this
Indenture shall bind its successors.

     SECTION 11.10 Separability. In case any provision in this Indenture or in
the Notes shall be invalid, illegal or unenforceable, the validity, legality,
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

     SECTION 11.11 Benefits of Indenture. Nothing in this Indenture or in the
Notes, express or implied, shall give to any Person, other than the parties
hereto and their successors hereunder, and the Noteholders and any other Person
with an ownership interest in any part of the Trust Estate, any benefit or any
legal or equitable right, remedy or claim under this Indenture.

     SECTION 11.12 Legal Holidays. In any case where the date on which any
payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes or this Indenture) payment need not be made on such
date, but may be made on the next succeeding Business Day with the same force
and effect as if made on the date on which nominally due, and no interest shall
accrue for the period from and after any such nominal date.

     SECTION 11.13 GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     SECTION 11.14 Counterparts. This Indenture may be executed in any number
of counterparts, each of which so executed shall be deemed to be an original,
but all such counterparts shall together constitute but one and the same
instrument.

     SECTION 11.15 Recording of Indenture. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense accompanied by an Opinion of Counsel
to the effect that such recording is necessary either for the protection of the
Noteholders or any other Person secured hereunder or for the enforcement of any
right or remedy granted to the Indenture Trustee under this Indenture.

     SECTION 11.16 Trust Obligation. Each Noteholder or Note Owner, by
acceptance of a Note, or, in the case of a Note Owner or a beneficial interest
in a Note, by accepting the benefits of this Indenture, covenants and agrees
that no recourse may be taken, directly or indirectly, with respect to the
obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the
Notes or under this Indenture or any certificate or other writing delivered in
connection herewith or therewith, against (i) the Indenture Trustee or the
Owner Trustee in their respective individual capacities, (ii) any
Certificateholder or any other owner of a beneficial interest in the Issuer,
(iii) the Servicer, the Administrator or the Seller or (iv) any partner, owner,
beneficiary, agent, officer, director, employee, successor or assign of any
Person described in clauses (i), (ii) and (iii) above, except as any such
Person may have expressly agreed (it being understood that the Indenture
Trustee and the Owner Trustee have no such obligations in their individual
capacity) and except that any such partner, owner or beneficiary shall be fully
liable, to the extent provided

	 	 	 
	 	49	2003-2 Indenture

 

by applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such entity.

     SECTION 11.17 No Petition. Each of the Indenture Trustee, by entering
into this Indenture, and each Noteholder and Note Owner, by accepting a Note
or, in the case of a Note Owner, a beneficial interest in a Note, hereby
covenants and agrees that prior to the date which is one year and one day after
payment in full of all obligations of each Bankruptcy Remote Party in respect
of all securities issued by the Bankruptcy Remote Parties, (i) such party shall
not authorize any Bankruptcy Remote Party to commence a voluntary winding-up or
other voluntary case or other proceeding seeking liquidation, reorganization or
other relief with respect to such Bankruptcy Remote Party or its debts under
any bankruptcy, insolvency or other similar law now or hereafter in effect in
any jurisdiction or seeking the appointment of an administrator, a trustee,
receiver, liquidator, custodian or other similar official with respect to such
Bankruptcy Remote Party or any substantial part of its property or to consent
to any such relief or to the appointment of or taking possession by any such
official in an involuntary case or other proceeding commenced against such
Bankruptcy Remote Party, or to make a general assignment for the benefit of,
its creditors generally, any party hereto or any other creditor of such
Bankruptcy Remote Party, and (ii) none of the parties hereto shall commence,
join or institute against, with any other Person, any proceeding against such
Bankruptcy Remote Party under any bankruptcy, reorganization, arrangement,
liquidation or insolvency law or statute now or hereafter in effect in any
jurisdiction.

     SECTION 11.18 Intent.

     (a)  It is the intent of the Issuer that the Notes constitute indebtedness
for all financial accounting purposes and the Issuer agrees and each purchaser
of a Note (by virtue of the acquisition of such Note or an interest therein)
shall be deemed to have agreed, to treat the Notes as indebtedness for all
financial accounting purposes.

     (b)  It is the intent of the Issuer that the Notes constitute indebtedness
of the Issuer for all tax purposes and the Issuer agrees and each purchaser of
a Note (by virtue of the acquisition of such Note or an interest therein) shall
be deemed to have agreed to treat the Notes as indebtedness for all tax
purposes.

     SECTION 11.19 Submission to Jurisdiction. Each of the parties hereto
hereby irrevocably and unconditionally:

     (a)  submits for itself and its property in any legal action or proceeding
relating to this Indenture or any documents executed and delivered in
connection herewith, or for recognition and enforcement of any judgment in
respect thereof, to the nonexclusive general jurisdiction of the courts of the
State of New York, the courts of the United States of America for the Southern
District of New York and appellate courts from any thereof;

     (b)  consents that any such action or proceeding may be brought in such
courts and waives any objection that it may now or hereafter have to the venue
of such action or proceeding in any such court or that such action or
proceeding was brought in an inconvenient court and agrees not to plead or
claim the same;

	 	 	 
	 	50	2003-2 Indenture

 

     (c)  agrees that service of process in any such action or proceeding may be
effected by mailing a copy thereof by registered or certified mail (or any
substantially similar form of mail), postage prepaid, to such Person at its
address determined in accordance with Section 11.4 of this Indenture; and

     (d)  agrees that nothing herein shall affect the right to effect service of
process in any other manner permitted by law or shall limit the right to sue in
any other jurisdiction.

     SECTION 11.20 Subordination of Claims. The Issuer’s obligations under
this Indenture are obligations solely of the Issuer and will not constitute a
claim against the Seller to the extent that the Issuer does not have funds
sufficient to make payment of such obligations. In furtherance of and not in
derogation of the foregoing, each of the Owner Trustee (in its individual
capacity and as the Owner Trustee), by accepting the benefits of this
Indenture, the Certificateholder, by accepting the Certificate, and Indenture
Trustee (in its individual capacity and as Indenture Trustee), by entering into
this Indenture, and each Noteholder and each Note Owner, by accepting the
benefits of this Indenture, hereby acknowledges and agrees that such Person has
no right, title or interest in or to the Other Assets of the Seller. To the
extent that, notwithstanding the agreements and provisions contained in the
preceding sentence, each of the Owner Trustee, the Indenture Trustee, each
Noteholder or Note Owner and the Certificateholder either (i) asserts an
interest or claim to, or benefit from, Other Assets, or (ii) is deemed to have
any such interest, claim to, or benefit in or from Other Assets, whether by
operation of law, legal process, pursuant to applicable provisions of
insolvency laws or otherwise (including by virtue of Section 1111(b) of the
Bankruptcy Code or any successor provision having similar effect under the
Bankruptcy Code), then such Person further acknowledges and agrees that any
such interest, claim or benefit in or from Other Assets is and will be
expressly subordinated to the indefeasible payment in full, which, under the
terms of the relevant documents relating to the securitization or conveyance of
such Other Assets, are entitled to be paid from, entitled to the benefits of,
or otherwise secured by such Other Assets (whether or not any such entitlement
or security interest is legally perfected or otherwise entitled to a priority
of distributions or application under applicable law, including insolvency
laws, and whether or not asserted against the Seller), including the payment of
post-petition interest on such other obligations and liabilities. This
subordination agreement will be deemed a subordination agreement within the
meaning of Section 510(a) of the Bankruptcy Code. Each of the Indenture
Trustee (in its individual capacity and as the Indenture Trustee), by entering
into or accepting this Indenture, the Certificateholder, by accepting the
Certificate, and the Owner Trustee, and each Noteholder or Note Owner, by
accepting the benefits of this Indenture, hereby further acknowledges and
agrees that no adequate remedy at law exists for a breach of this Section and
the terms of this Section may be enforced by an action for specific
performance. The provisions of this Section will be for the third party
benefit of those entitled to rely thereon and will survive the termination of
this Indenture.

     SECTION 11.21 Limitation of Liability of Owner Trustee. It is expressly
understood and agreed by and between the parties hereto that (i) this Indenture
is executed and delivered by The Bank of New York (Delaware), not in its
individual capacity but solely as Owner Trustee of the Issuer in the exercise
of the power and authority conferred and vested in it as such Owner Trustee,
(ii) each of the representations, undertakings and agreements made herein by
the Issuer are not personal representations, undertakings and agreements of The
Bank of New York (Delaware), but are binding only on the Issuer, (iii) nothing
contained herein shall be construed

	 	 	 
	 	51	2003-2 Indenture

 

as creating any liability on The Bank of New York (Delaware), 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 any such
party, and (iv) under no circumstances shall The Bank of New York (Delaware) be
personally liable for the payment of any indebtedness or expense 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 Indenture.

[Remainder of Page Intentionally Left Blank]

	 	 	 
	 	52	2003-2 Indenture

 

     IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused this
Indenture to be duly executed by their respective officers, thereunto duly
authorized, all as of the day and year first above written.

	 	 	 	 	 
	 	 	VOLKSWAGEN AUTO LOAN ENHANCED TRUST 2003-2
	 	 	 	 	 
	 	 	By: The Bank of New York (Delaware), not in
its individual capacity but solely as Owner
Trustee
	 	 	 	 	 
	 	 	
By:
	 	/s/ William T. Lewis
	 	 	 	 	

	 	 	
Name:
	 	William T. Lewis
	 	 	
Title:
	 	Sr. Vice President

	 	 	 
	 	S-1	2003-2 Indenture

 

	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, not in its individual

capacity but solely as Indenture Trustee
	 	 	 	 	 
	 	 	
By:
	 	/s/ Wen Hao Wang
	 	 	 	 	

	\	 	
Name:

Title:
	 	Wen Hao Wang

Asst. Vice President

	 	 	 
	 	S-2	2003-2 Indenture

 

Exhibit A

FORMS OF NOTES

	 	 	 
	 	A-1	2003-2 Indenture

 

FORM OF CLASS [A-1] [A-2] [A-3][A-4] NOTES

	 	 	 
	REGISTERED	 	$                    1
	No.  R-        	 	
CUSIP NO.                    
	 	 	
ISIN.                        

     UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

     THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

VOLKSWAGEN AUTO LOAN ENHANCED TRUST 2003-2

[CLASS A-1 1.14563%] [CLASS A-2 1.55%] [CLASS A-3 2.27%] [CLASS A-4 2.94%]

AUTO LOAN ASSET BACKED NOTES

     Volkswagen Auto Loan Enhanced Trust 2003-2, a statutory trust organized
and existing under the laws of the State of Delaware (including any successor,
the “Issuer”), for value received, hereby promises to pay to CEDE & CO., or
registered assigns, the principal sum of [     ] DOLLARS ($[     ]), in monthly
installments on the 20th of each month, or if such day is not a Business Day,
on the immediately succeeding Business Day, commencing on November 20, 2003
[FOR CLASS A-1 ONLY: ; provided, however, that if the Class A-1 Notes remain
outstanding at that time, the November 2004 Payment Date for the Class A-1
Notes only will be November 19, 2004] (each, a “Payment Date”) until the
principal of this Note is paid or made available for payment, and to pay
interest on each Payment Date on the Class [A-1] [A-2] [A-3] [A-4] Note Balance
as of the preceding Payment Date (after giving effect to all payments of
principal made on the preceding Payment Date), or as of the Closing Date in the
case of the first Payment Date, at the rate per annum shown above (the
“Interest Rate”), in each case as and to the extent set forth in Sections 2.7,
3.1, 5.4(b) and 8.2 of the Indenture and Section 4.4 of the Sale and Servicing
Agreement; provided, however, that the entire Class [A-1] [A-2] [A-3] [A-4]
Note Balance shall be due and payable on the earliest of (i) [     ] (the “Final
Scheduled Payment Date”), (ii) the Redemption Date, if any, pursuant to Section
10.1 of the Indenture and (iii) the date the Notes are accelerated after an
Event of Default pursuant to Section 5.2 of the Indenture.

	 	 	1 Denominations of $100,000 and integral multiples of $1,000 in excess thereof.

	 	 	 
	 	A-2	2003-2 Indenture

 

Interest on this Note will accrue for each Payment Date from and including
the preceding Payment Date (or, in the case of the initial Payment Date, from
and including the Closing Date) to but excluding such Payment Date. Interest
will be computed on the basis of [Class A-1: actual days elapsed and a 360-day
year][Class A-2, A-3 and A-4: a 360-day year of twelve 30-day months]. Such
principal of and interest on this Note shall be paid in the manner specified on
the reverse hereof.

     The principal of and interest on this Note are payable in such coin or
currency of the United States as at the time of payment is legal tender for
payment of public and private debts. All payments made by the Issuer with
respect to this Note shall be applied first to interest on this Note as
provided above and then to the unpaid principal of this Note.

     Reference is made to the further provisions of this Note set forth on the
reverse hereof, which shall have the same effect as though fully set forth on
the face of this Note.

     Unless the certificate of authentication hereon has been executed by the
Indenture Trustee the name of which appears below by manual signature, this
Note shall not be entitled to any benefit under the Indenture referred to on
the reverse hereof or be valid or obligatory for any purpose.

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed,
manually, by its Authorized Officer.

Dated: October 29, 2003

	 	 	 	 	 
	 	 	VOLKSWAGEN AUTO LOAN ENHANCED

TRUST 2003-2
	 	 	 	 	 
	 	 	By: THE
BANK OF NEW YORK (DELAWARE), not in
its individual capacity but solely as Owner Trustee
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Name:	 	 
	 	 	 	 	

	 	 	
Title:	 	 
	 	 	 	 	

	 	 	 
	 	A-3	2003-2 Indenture

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

Dated: October 29, 2003

	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK,

a New York banking corporation, not in its
individual capacity but solely as Indenture Trustee
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	 	 	Authorized Signatory

	 	 	 
	 	A-4	2003-2 Indenture

 

[REVERSE OF NOTE]

     This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its [Class A-1 1.14563%] [Class A-2 1.55%] [Class A-3 2.27%]
[Class A-4 2.94%] Auto Loan Asset-Backed Notes (herein called the “Class [A-1]
[A-2] [A-3] [A-4] Notes” or the “Notes”), all issued under an Indenture dated
as of October 29, 2003 (such Indenture, as supplemented or amended, is herein
called the “Indenture”), between the Issuer and JPMorgan Chase Bank, a New York
banking corporation, not in its individual capacity but solely as trustee (the
“Indenture Trustee”), which term includes any successor Indenture Trustee under
the Indenture, to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the
Noteholders. The Notes are subject to all terms of the Indenture and the Sale
and Servicing Agreement. All terms used in this Note that are not otherwise
defined herein and that are defined in the Indenture or the Sale and Servicing
Agreement shall have the meanings assigned to them in the Indenture or in
Appendix A of the Sale and Servicing Agreement.

     The Class A Notes are and will be equally and ratably secured by the
collateral pledged as security therefor as provided in the Indenture. The
Class B Notes are subordinated to the Class A Notes, and are secured by the
collateral pledged as security therefor on a subordinated basis as provided in
the Indenture. All covenants and agreements made by the Issuer in the
Indenture are for the benefit of the Holders of the Class A Notes and the Class
B Notes.

     Principal payable on the Notes will be paid on each Payment Date in the
amount specified in the Indenture and in the Sale and Servicing Agreement. As
described above, the entire Class [A-1] [A-2] [A-3] [A-4] Note Balance shall be
due and payable on the earliest of (i) [     ] (the “Final Scheduled Payment
Date”), (ii) the Redemption Date, if any, pursuant to Section 10.1 of the
Indenture and (iii) the date the Notes are accelerated after an Event of
Default pursuant to Section 5.2 of the Indenture. All principal payments on
the Class [A-1] [A-2] [A-3] [A-4] Notes shall be made pro rata to the Class
[A-1] [A-2] [A-3] [A-4] Noteholders entitled thereto.

     Payments of principal of and interest on this Note made on each Payment
Date, Redemption Date or upon acceleration shall be made by check mailed to the
Person whose name appears as the registered Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on the
related Record Date, except that with respect to Notes registered on the Record
Date in the name of the nominee of the Depository (initially, such nominee to
be Cede & Co.), payments will be made by wire transfer in immediately available
funds to the account designated by such nominee. Such checks shall be mailed
to the Person entitled thereto at the address of such Person as it appears on
the Note Register as of the applicable Record Date without requiring that this
Note be submitted for notation of payment. Any reduction in the principal
amount of this Note (or any one or more Predecessor Notes) affected by any
payments made on any Payment Date or Redemption Date shall be binding upon all
future Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not noted
hereon. If funds are expected to be available, as provided in the Indenture,
for payment in full of the remaining unpaid principal amount of this Note on a
Payment Date or Redemption Date, then the Indenture Trustee, in the name of and
on behalf of the Issuer, will notify the Person who was the registered Holder
hereof

	 	 	 
	 	A-5	2003-2 Indenture

 

as of the Record Date preceding such Payment Date or Redemption Date by
notice mailed prior to such Payment Date or Redemption Date and the amount then
due and payable shall be payable only upon presentation and surrender of this
Note at the Corporate Trust Office of the Indenture Trustee or at the office of
the Indenture Trustee’s agent appointed for such purposes located in The City
of New York.

     Each Noteholder or Note Owner, by acceptance of a Note, or, in the case of
a Note Owner, a beneficial interest in a Note, covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Seller, the Servicer, the Owner Trustee or the Indenture
Trustee on the Notes or under this Indenture or any certificate or other
writing delivered in connection herewith or therewith, against (i) the Seller,
the Servicer, the Indenture Trustee or the Owner Trustee in its individual
capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any
partner, owner, beneficiary, agent, officer, director, employee or agent of the
Seller, the Servicer, the Indenture Trustee or the Owner Trustee in its
individual capacity, any holder of a beneficial interest in the Issuer, the
Seller, the Servicer, the Owner Trustee or the Indenture Trustee or of any
successor or assign of the Seller, the Servicer, the Indenture Trustee or the
Owner Trustee in its individual capacity, except as any such Person may have
expressly agreed (it being understood that the Indenture Trustee and the Owner
Trustee have no such obligations in their individual capacity) and except that
any such partner, owner or beneficiary shall be fully liable, to the extent
provided by applicable law, for any unpaid consideration for stock, unpaid
capital contribution or failure to pay any installment or call owing to such
entity.

     It is the intent of the Seller, the Servicer, the Noteholders and the Note
Owners that, for purposes of federal and state income tax and any other tax
measured in whole or in part by income, the Class A Notes (including the Class
[A-1] [A-2] [A-3] [A-4] Notes) will qualify as indebtedness of the Issuer. The
Noteholders, by acceptance of a Class A Note, agree to treat, and to take no
action inconsistent with the treatment of, the Class A Notes for such tax
purposes as indebtedness of the Issuer.

     Each Noteholder or Note Owner, by acceptance of a Note, or, in the case of
a Note Owner, a beneficial interest in a Note, covenants and agrees that, prior
to the date which is one year and one day after payment in full of all
obligations of each Bankruptcy Remote Party in respect of all securities issued
by any Bankruptcy Remote Party (i) such party shall not authorize any
Bankruptcy Remote Party to commence a voluntary winding-up or other voluntary
case or other proceeding seeking liquidation, reorganization or other relief
with respect to such Bankruptcy Remote Party or its debts under any bankruptcy,
insolvency or other similar law now or hereafter in effect in any jurisdiction
or seeking the appointment of an administrator, a trustee, receiver,
liquidator, custodian or other similar official with respect to such Bankruptcy
Remote Party or any substantial part of its property or to consent to any such
relief or to the appointment of or taking possession by any such official in
any involuntary case or other proceeding commenced against such Bankruptcy
Remote Party, or to make a general assignment for the benefit of, its creditors
generally, any party hereto or any other creditor of such Bankruptcy Remote
Party, and (ii) none of the parties hereto shall commence or join with any
other Person in commencing any proceeding against such Bankruptcy Remote Party
under any bankruptcy, reorganization, liquidation or insolvency law or statute
now or hereafter in effect in any jurisdiction.

	 	 	 
	 	A-6	2003-2 Indenture

 

     This Note and the Indenture shall be construed in accordance with the laws
of the State of New York, without reference to its conflict of law provisions,
and the obligations, rights and remedies of the parties hereunder and
thereunder shall be determined in accordance with such laws.

     No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note
at the times, place and rate, and in the coin or currency, herein prescribed.

	 	 	 
	 	A-7	2003-2 Indenture

 

ASSIGNMENT

	 	 	 
	Social Security or taxpayer I.D. or other identifying number of assignee	 
	 	 	

	 
	

	 	 	 
	FOR VALUE RECEIVED, the undersigned hereby sells,
assigns and transfers unto	 	 
	 	 	

	 	 	
(name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints _________________________, attorney, to transfer said Note on the
books kept for registration thereof, with full power of substitution in the
premises.

	 	 	 	 	 
	Dated:	 	 	 	 
	 	

	 	
	*/
	 	 	 	Signature Guaranteed:	 

	 	 
	 	

	 	Signatures must be guaranteed by an “eligible
guarantor institution” meeting the
requirements of the Note Registrar, which
requirements include membership or
participation in STAMP or such other
“signature guarantee program” as may be
determined by the Note Registrar in addition
to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act
of 1934, as amended.

	*/	 	 NOTE: The signature to this assignment must correspond with the name
of the registered owner as it appears on the face of the within Note in every
particular without alteration, enlargement or any change whatsoever.

	 	 	 
	 	A-8	2003-2 Indenture

 

FORM OF CLASS B NOTES

	 	 	 
	REGISTERED	 	
$                1
	No. R-                	 	 

     THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES OR
BLUE SKY LAW. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES THAT THIS
NOTE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN
COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTIONS.

     THIS NOTE, OR ANY INTEREST HEREIN, MAY ONLY BE TRANSFERRED UPON RECEIPT BY
THE INDENTURE TRUSTEE AND THE ISSUER OF AN OPINION OF COUNSEL, SUBJECT TO THE
ASSUMPTIONS AND QUALIFICATIONS STATED THEREIN, AND IN A FORM SUBSTANTIALLY
ACCEPTABLE TO THE INDENTURE TRUSTEE, SUBSTANTIALLY TO THE EFFECT THAT THE
TRANSFER OF THE CLASS B NOTES WILL NOT ADVERSELY AFFECT THE TAX
CHARACTERIZATION AS DEBT OF NOTES OF ANY OUTSTANDING CLASS THAT WERE
CHARACTERIZED AS DEBT FOR FEDERAL INCOME TAX PURPOSES AT THE TIME OF THEIR
ISSUANCE; (B) WILL NOT CAUSE THE ISSUER TO BE DEEMED TO BE AN ASSOCIATION (OR
PUBLICLY TRADED PARTNERSHIP) TAXABLE AS A CORPORATION; AND (C) WILL NOT CAUSE
OR CONSTITUTE AN EVENT IN WHICH GAIN OR LOSS WOULD BE RECOGNIZED BY ANY
NOTEHOLDER.

     THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

     NEITHER THIS NOTE NOR ANY INTEREST HEREIN MAY BE ACQUIRED OR HELD (IN THE
INITIAL ACQUISITION OR THROUGH A TRANSFER) BY OR FOR THE ACCOUNT OF OR WITH THE
ASSETS OF (A) AN EMPLOYEE BENEFIT PLAN (AS DEFINED IN SECTION 3(3) OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”)) THAT IS
SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, (B) A PLAN DESCRIBED IN SECTION
4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED OR (C) ANY ENTITY WHOSE
UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF A PLAN’S INVESTMENT IN THE
ENTITY.

	 	 	1 Denominations of $100,000 and integral multiples of $1,000 in excess thereof.

	 	 	 
	 	A-9	2003-2 Indenture

 

VOLKSWAGEN AUTO LOAN ENHANCED TRUST 2003-2

0.00% CLASS B AUTO LOAN ASSET BACKED NOTES

     Volkswagen Auto Loan Enhanced Trust 2003-2, a statutory trust organized
and existing under the laws of the State of Delaware (including any successor,
the “Issuer”), for value received, hereby promises to pay to VOLKSWAGEN PUBLIC
AUTO LOAN SECURITIZATION, LLC, or registered assigns, the principal sum of
[     ] DOLLARS ($[     ]), in monthly installments on the 20th of each month, or
if such day is not a Business Day, on the immediately succeeding Business Day,
commencing on November 20, 2003 (each, a “Payment Date”) until the principal of
this Note is paid or made available for payment, and to pay interest on each
Payment Date on the Class B Note Balance as of the preceding Payment Date
(after giving effect to all payments of principal made on the preceding Payment
Date), or as of the Closing Date in the case of the first Payment Date, at the
rate per annum shown above (the “Interest Rate”), in each case as and to the
extent set forth in Sections 2.7, 3.1, 5.4(b) and 8.2 of the Indenture and
Section 4.4 of the Sale and Servicing Agreement; provided, however, that the
entire Class B Note Balance shall be due and payable on the earliest of (i)
[     ] (the “Final Scheduled Payment Date”), (ii) the Redemption Date, if any,
pursuant to Section 10.1 of the Indenture and (iii) the date the Notes are
accelerated after an Event of Default pursuant to Section 5.2 of the Indenture.
Interest on this Note will accrue for each Payment Date from and including
the preceding Payment Date (or, in the case of the initial Payment Date, from
and including the Closing Date) to but excluding such Payment Date. Interest
will be computed on the basis of a 360-day year of twelve 30-day months. Such
principal of and interest on this Note shall be paid in the manner specified on
the reverse hereof.

     The principal of and interest on this Note are payable in such coin or
currency of the United States as at the time of payment is legal tender for
payment of public and private debts. All payments made by the Issuer with
respect to this Note shall be applied first to interest on this Note as
provided above and then to the unpaid principal of this Note.

     Reference is made to the further provisions of this Note set forth on the
reverse hereof, which shall have the same effect as though fully set forth on

the face of this Note.

     Unless the certificate of authentication hereon has been executed by the
Indenture Trustee the name of which appears below by manual signature, this
Note shall not be entitled to any benefit under the Indenture referred to on
the reverse hereof or be valid or obligatory for any purpose.

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed,
manually, by its Authorized Officer.

Dated: October 29, 2003

	 	 	 
	 	A-10	2003-2 Indenture

 

	 	 	 	 	 
	 	 	VOLKSWAGEN AUTO LOAN ENHANCED

TRUST 2003-2
	 	 	 	 	 
	 	 	By: THE
BANK OF NEW YORK (DELAWARE), not in
its individual capacity but solely as Owner Trustee
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Name:	 	 
	 	 	 	 	

	 	 	
Title:	 	 
	 	 	 	 	

	 	 	 
	 	A-11	2003-2 Indenture

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

Dated: October 29, 2003

	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK,
	 	 	
a New York banking corporation, not in its
individual
capacity but solely as Indenture Trustee	 
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	

	 
	 	 	 	
Authorized Signatory	 

	 	 	 
	 	A-12	2003-2 Indenture

 

[REVERSE OF NOTE]

     This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its 0.00% Class B Auto Loan Asset-Backed Notes (herein called the
“Class B Notes” or the “Notes”), all issued under an Indenture dated as of
October 29, 2003 (such Indenture, as supplemented or amended, is herein called
the “Indenture”), between the Issuer and JPMorgan Chase Bank, a New York
banking corporation, not in its individual capacity but solely as trustee (the
“Indenture Trustee”), which term includes any successor Indenture Trustee under
the Indenture, to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the
Noteholders. The Notes are subject to all terms of the Indenture and the Sale
and Servicing Agreement. All terms used in this Note that are not otherwise
defined herein and that are defined in the Indenture or the Sale and Servicing
Agreement shall have the meanings assigned to them in the Indenture or in
Appendix A of the Sale and Servicing Agreement.

     The Class A Notes are and will be equally and ratably secured by the
collateral pledged as security therefor as provided in the Indenture. The
Class B Notes are subordinated to the Class A Notes, and are secured by the
collateral pledged as security therefor on a subordinated basis as provided in
the Indenture. All covenants and agreements made by the Issuer in the
Indenture are for the benefit of the Holders of the Class A Notes and the Class
B Notes.

     Principal payable on the Notes will be paid on each Payment Date in the
amount specified in the Indenture and in the Sale and Servicing Agreement. As
described above, the entire Class B Note Balance shall be due and payable on
the earliest of (i) [     ] (the “Final Scheduled Payment Date”), (ii) the
Redemption Date, if any, pursuant to Section 10.1 of the Indenture and (iii)
the date the Notes are accelerated after an Event of Default pursuant to
Section 5.2 of the Indenture. All principal payments on the Class B Notes
shall be made pro rata to the Class B Noteholders entitled thereto.

     Payments of principal of and interest on this Note made on each Payment
Date, Redemption Date or upon acceleration shall be made by check mailed to the
Person whose name appears as the registered Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on the
related Record Date. Such checks shall be mailed to the Person entitled
thereto at the address of such Person as it appears on the Note Register as of
the applicable Record Date without requiring that this Note be submitted for
notation of payment. Any reduction in the principal amount of this Note (or
any one or more Predecessor Notes) affected by any payments made on any Payment
Date or Redemption Date shall be binding upon all future Holders of this Note
and of any Note issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not noted hereon. If funds are expected
to be available, as provided in the Indenture, for payment in full of the
remaining unpaid principal amount of this Note on a Payment Date or Redemption
Date, then the Indenture Trustee, in the name of and on behalf of the Issuer,
will notify the Person who was the registered Holder hereof as of the Record
Date preceding such Payment Date or Redemption Date by notice mailed prior to
such Payment Date or Redemption Date and the amount then due and payable shall
be payable only upon presentation and surrender of this Note at the Corporate
Trust Office of the Indenture Trustee or at the office of the Indenture
Trustee’s agent appointed for such purposes located in The City of New York.

	 	 	 
	 	A-13	2003-2 Indenture

 

     Each Noteholder or Note Owner, by acceptance of a Note, or, in the case of
a Note Owner, a beneficial interest in a Note, covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Seller, the Servicer, the Owner Trustee or the Indenture
Trustee on the Notes or under this Indenture or any certificate or other
writing delivered in connection herewith or therewith, against (i) the Seller,
the Servicer, the Indenture Trustee or the Owner Trustee in its individual
capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any
partner, owner, beneficiary, agent, officer, director, employee or agent of the
Seller, the Servicer, the Indenture Trustee or the Owner Trustee in its
individual capacity, any holder of a beneficial interest in the Issuer, the
Seller, the Servicer, the Owner Trustee or the Indenture Trustee or of any
successor or assign of the Seller, the Servicer, the Indenture Trustee or the
Owner Trustee in its individual capacity, except as any such Person may have
expressly agreed (it being understood that the Indenture Trustee and the Owner
Trustee have no such obligations in their individual capacity) and except that
any such partner, owner or beneficiary shall be fully liable, to the extent
provided by applicable law, for any unpaid consideration for stock, unpaid
capital contribution or failure to pay any installment or call owing to such
entity.

     It is the intent of the Seller, the Servicer, the Noteholders and the Note
Owners that, for purposes of federal and state income tax and any other tax
measured in whole or in part by income, the Class A Notes will qualify as
indebtedness of the Issuer.

     Each Noteholder or Note Owner, by acceptance of a Note, or, in the case of
a Note Owner, a beneficial interest in a Note, covenants and agrees that, prior
to the date which is one year and one day after payment in full of all
obligations of each Bankruptcy Remote Party in respect of all securities issued
by any Bankruptcy Remote Party (i) such party shall not authorize any
Bankruptcy Remote Party to commence a voluntary winding-up or other voluntary
case or other proceeding seeking liquidation, reorganization or other relief
with respect to such Bankruptcy Remote Party or its debts under any bankruptcy,
insolvency or other similar law now or hereafter in effect in any jurisdiction
or seeking the appointment of an administrator, a trustee, receiver,
liquidator, custodian or other similar official with respect to such Bankruptcy
Remote Party or any substantial part of its property or to consent to any such
relief or to the appointment of or taking possession by any such official in
any involuntary case or other proceeding commenced against such Bankruptcy
Remote Party, or to make a general assignment for the benefit of, its creditors
generally, any party hereto or any other creditor of such Bankruptcy Remote
Party, and (ii) none of the parties hereto shall commence or join with any
other Person in commencing any proceeding against such Bankruptcy Remote Party
under any bankruptcy, reorganization, liquidation or insolvency law or statute
now or hereafter in effect in any jurisdiction.

     This Note and the Indenture shall be construed in accordance with the laws
of the State of New York, without reference to its conflict of law provisions,
and the obligations, rights and remedies of the parties hereunder and
thereunder shall be determined in accordance with such laws.

     No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the

	 	 	 
	 	A-14	2003-2 Indenture

 

principal of and interest on this Note at the times, place and rate, and
in the coin or currency, herein prescribed.

	 	 	 
	 	A-15	2003-2 Indenture

 

ASSIGNMENT

	 	 	 
	Social Security or taxpayer I.D. or other identifying number of assignee	 	 
	 	 	

	 
	

	 	 	 
	FOR VALUE RECEIVED, the undersigned hereby sells,
assigns and transfers unto	 	 
	 	 	

	 	 	
(name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints _________________________, attorney, to transfer said Note on the
books kept for registration thereof, with full power of substitution in the
premises.

	 	 	 	 	 
	Dated:	 	 	 	 
	 	

	 	
	*/
	 	 	 	Signature Guaranteed:	 

	 	 
	 	

	 	Signatures must be guaranteed by an “eligible
guarantor institution” meeting the
requirements of the Note Registrar, which
requirements include membership or
participation in STAMP or such other
“signature guarantee program” as may be
determined by the Note Registrar in addition
to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act
of 1934, as amended

	*	 	/ NOTE: The signature to this assignment must correspond with the name
of the registered owner as it appears on the face of the within Note in every
particular without alteration, enlargement or any change whatsoever.

	 	 	 
	 	A-16	2003-2 Indentureexv4w2

 

EXHIBIT 4.2

EXECUTION COPY

VOLKSWAGEN AUTO LOAN ENHANCED TRUST 2003-2

AMENDED AND RESTATED

TRUST AGREEMENT

between

VOLKSWAGEN PUBLIC AUTO LOAN SECURITIZATION, LLC,

as the Depositor

and

THE BANK OF NEW YORK (DELAWARE),

as the Owner Trustee

Dated as of October 29, 2003

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page
	ARTICLE I	 	DEFINITIONS
	 	 	1	 
	SECTION 1.1.	 	 	Capitalized Terms
	 	 	1	 
	SECTION 1.2.	 	 	Other Interpretive Provisions
	 	 	1	 
	ARTICLE II	 	ORGANIZATION
	 	 	2	 
	SECTION 2.1.	 	 	Name
	 	 	2	 
	SECTION 2.2.	 	 	Office
	 	 	2	 
	SECTION 2.3.	 	 	Purposes and Powers
	 	 	2	 
	SECTION 2.4.	 	 	Appointment of the Owner Trustee
	 	 	3	 
	SECTION 2.5.	 	 	Initial Capital Contribution of Trust Estate
	 	 	3	 
	SECTION 2.6.	 	 	Declaration of Trust
	 	 	3	 
	SECTION 2.7.	 	 	Organizational Expenses; Liabilities of the Holders
	 	 	3	 
	SECTION 2.8.	 	 	Title to the Trust Estate
	 	 	3	 
	SECTION 2.9.	 	 	Representations and Warranties of the Seller
	 	 	4	 
	SECTION 2.10.	 	 	Situs of Issuer
	 	 	5	 
	ARTICLE III	 	CERTIFICATE AND TRANSFER OF CERTIFICATE
	 	 	5	 
	SECTION 3.1.	 	 	Initial Ownership
	 	 	5	 
	SECTION 3.2.	 	 	Authentication of Certificate
	 	 	5	 
	SECTION 3.3.	 	 	Form of the Certificate
	 	 	5	 
	SECTION 3.4.	 	 	Registration of Certificates
	 	 	5	 
	SECTION 3.5.	 	 	Transfer of Certificate
	 	 	5	 
	SECTION 3.6.	 	 	Lost, Stolen, Mutilated or Destroyed Certificates
	 	 	6	 
	ARTICLE IV	 	ACTIONS BY OWNER TRUSTEE
	 	 	7	 
	SECTION 4.1.	 	 	Prior Notice to Certificateholder with Respect to Certain Matters
	 	 	7	 
	SECTION 4.2.	 	 	Action by Certificateholder with Respect to Certain Matters
	 	 	7	 
	SECTION 4.3.	 	 	Action by Certificateholder with Respect to Bankruptcy
	 	 	7	 
	SECTION 4.4.	 	 	Restrictions on Certificateholder’s Power
	 	 	8	 
	SECTION 4.5.	 	 	Majority Control
	 	 	8	 
	ARTICLE V	 	APPLICATION OF TRUST FUNDS; CERTAIN DUTIES
	 	 	8	 
	SECTION 5.1.	 	 	Application of Trust Funds
	 	 	8	 
	SECTION 5.2.	 	 	Method of Payment
	 	 	8	 
	SECTION 5.3.	 	 	Sarbanes-Oxley Act
	 	 	8	 
	SECTION 5.4.	 	 	Signature on Returns
	 	 	8	 
	ARTICLE VI	 	AUTHORITY AND DUTIES OF OWNER TRUSTEE
	 	 	9	 
	SECTION 6.1.	 	 	General Authority
	 	 	9	 
	SECTION 6.2.	 	 	General Duties
	 	 	9	 
	SECTION 6.3.	 	 	Action upon Instruction
	 	 	9	 

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TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page
	    SECTION 6.4.	 	 	No Duties Except as Specified in this Agreement or in Instructions
	 	 	10	 
	    SECTION 6.5.	 	 	No Action Except under Specified Documents or Instructions
	 	 	11	 
	    SECTION 6.6.	 	 	Restrictions
	 	 	11	 
	ARTICLE VII	 	CONCERNING OWNER TRUSTEE
	 	 	11	 
	    SECTION 7.1.	 	 	Acceptance of Trusts and Duties
	 	 	11	 
	    SECTION 7.2.	 	 	Furnishing of Documents
	 	 	12	 
	    SECTION 7.3.	 	 	Representations and Warranties
	 	 	12	 
	    SECTION 7.4.	 	 	Reliance; Advice of Counsel
	 	 	12	 
	    SECTION 7.5.	 	 	Not Acting in Individual Capacity
	 	 	13	 
	    SECTION 7.6.	 	 	The Owner Trustee May Own Notes
	 	 	13	 
	ARTICLE VIII	 	COMPENSATION OF OWNER TRUSTEE
	 	 	13	 
	    SECTION 8.1.	 	 	The Owner Trustee’s Compensation
	 	 	13	 
	    SECTION 8.2.	 	 	Indemnification
	 	 	14	 
	    SECTION 8.3.	 	 	Payments to the Owner Trustee
	 	 	14	 
	ARTICLE IX	 	TERMINATION OF TRUST AGREEMENT
	 	 	14	 
	    SECTION 9.1.	 	 	Termination of Trust Agreement
	 	 	14	 
	    SECTION 9.2.	 	 	Dissolution of the Issuer
	 	 	14	 
	    SECTION 9.3.	 	 	Limitations on Termination
	 	 	15	 
	ARTICLE X	 	SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES
	 	 	15	 
	    SECTION 10.1.	 	 	Eligibility Requirements for the Owner Trustee
	 	 	15	 
	    SECTION 10.2.	 	 	Resignation or Removal of the Owner Trustee
	 	 	15	 
	    SECTION 10.3.	 	 	Successor Owner Trustee
	 	 	16	 
	    SECTION 10.4.	 	 	Merger or Consolidation of the Owner Trustee
	 	 	16	 
	    SECTION 10.5.	 	 	Appointment of Co-Trustee or Separate Trustee
	 	 	17	 
	ARTICLE XI	 	MISCELLANEOUS
	 	 	18	 
	    SECTION 11.1.	 	 	Amendments
	 	 	18	 
	    SECTION 11.2.	 	 	No Legal Title to Trust Estate in Certificateholder
	 	 	19	 
	    SECTION 11.3.	 	 	Limitations on Rights of Others
	 	 	19	 
	    SECTION 11.4.	 	 	Notices
	 	 	19	 
	    SECTION 11.5.	 	 	Severability
	 	 	20	 
	    SECTION 11.6.	 	 	Separate Counterparts
	 	 	20	 
	    SECTION 11.7.	 	 	Successors and Assigns
	 	 	20	 
	    SECTION 11.8.	 	 	No Petition
	 	 	20	 
	    SECTION 11.9.	 	 	Headings
	 	 	21	 

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TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page
	SECTION 11.10.	 	 	GOVERNING LAW
	 	 	21	 

	 	 	 
	Exhibit A	 	
Form of Certificate

-iii-

 

     This AMENDED AND RESTATED TRUST AGREEMENT is made as of October 29, 2003
(as from time to time amended, supplemented or otherwise modified and in
effect, this “Agreement”) between VOLKSWAGEN PUBLIC AUTO LOAN SECURITIZATION,
LLC, a Delaware limited liability company, as the Depositor (the “Seller”), and
THE BANK OF NEW YORK (DELAWARE), a Delaware banking corporation (“BNY”), as the
owner trustee (in such capacity, the “Owner Trustee”).

RECITALS

     WHEREAS, the Seller and the Owner Trustee entered into that certain Trust
Agreement dated as of September 24, 2003 (the “Original Trust Agreement”),
pursuant to which the Issuer (as defined below) was created; and

     WHEREAS, in connection with the issuance of the Notes, the parties have
agreed to amend and restate the Original Trust Agreement;

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

ARTICLE I

DEFINITIONS

     SECTION 1.1. Capitalized Terms. Unless otherwise indicated, capitalized
terms used in this Agreement are defined in Appendix A to the Sale and
Servicing Agreement dated as of the date hereof (as from time to time amended,
supplemented or otherwise modified and in effect, the “Sale and Servicing
Agreement”) among the Issuer, the Seller, VW Credit, Inc., as servicer, and
JPMorgan Chase Bank, as indenture trustee, as the same may be amended, modified
or supplemented from time to time.

     SECTION 1.2. Other Interpretive Provisions. All terms defined in this
Agreement shall have the defined meanings when used in any certificate or other
document delivered pursuant hereto unless otherwise defined therein. For
purposes of this Agreement and all such certificates and other documents,
unless the context otherwise requires: (a) accounting terms not otherwise
defined in this Agreement, and accounting terms partly defined in this
Agreement to the extent not defined, shall have the respective meanings given
to them under GAAP; (b) terms defined in Article 9 of the UCC as in effect in
the State of Delaware and not otherwise defined in this Agreement are used as
defined in that Article; (c) the words “hereof,” “herein” and “hereunder” and
words of similar import refer to this Agreement as a whole and not to any
particular provision of this Agreement; (d) references to any Article, Section,
Schedule or Exhibit are references to Articles, Sections, Schedules and
Exhibits in or to this Agreement, and references to any paragraph, subsection,
clause or other subdivision within any Section or definition refer to such
paragraph, subsection, clause or other subdivision of such Section or
definition; (e) the term “including” means “including without limitation”; (f)
references to any law or regulation refer to that law or regulation as amended
from time to time and include any successor law or regulation; and (g)
references to any Person include that Person’s successors and assigns.

 

 

ARTICLE II

ORGANIZATION

     SECTION 2.1. Name. The trust created under the Original Trust Agreement
shall be known as “Volkswagen Auto Loan Enhanced Trust 2003-2” (the “Issuer”),
in which name the Owner Trustee may conduct the business of such trust, make
and execute contracts and other instruments on behalf of such trust and sue and
be sued.

     SECTION 2.2. Office. The office of the Issuer shall be in care of the
Owner Trustee at the Corporate Trust Office or at such other address as the
Owner Trustee may designate by written notice to the Certificateholder, the
Seller and the Administrator.

     SECTION 2.3. Purposes and Powers. The purpose of the Issuer is, and the
Issuer shall have the power and authority, to engage in the following
activities:

		
	 	     (a) to issue the Notes pursuant to the Indenture and the Certificate
pursuant to this Agreement, and to sell, transfer and exchange the Notes
and the Certificate and to pay interest on and principal of the Notes and
distributions on the Certificate;
	 
	 	     (b) to acquire the property and assets set forth in the Sale and
Servicing Agreement from the Seller pursuant to the terms thereof, to
make deposits to and withdrawals from the Collection Account, the
Principal Distribution Account and the Reserve Account and to pay the
organizational, start-up and transactional expenses of the Issuer;
	 
	 	     (c) to assign, grant, transfer, pledge, mortgage and convey the
Trust Estate pursuant to the Indenture and to hold, manage and distribute
to the Certificateholder any portion of the Trust Estate released from
the lien of, and remitted to the Issuer pursuant to, the Indenture;
	 
	 	     (d) to enter into and perform its obligations under the Transaction
Documents to which it is a party;
	 
	 	     (e) 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; and
	 
	 	     (f) subject to compliance with the Transaction Documents, to engage
in such other activities as may be required in connection with
conservation of the Trust Estate and the making of distributions to the
Certificateholder and the Noteholders.

The Owner Trustee is hereby authorized to engage in the foregoing activities on
behalf of the Issuer. Neither the Issuer nor the Owner Trustee on behalf of
the Issuer shall engage in any activity other than in connection with the
foregoing or other than as required or authorized by the terms of this
Agreement or the other Transaction Documents.

2

 

     SECTION 2.4. Appointment of the Owner Trustee. The Seller hereby appoints
the Owner Trustee as trustee of the Issuer effective as of the date hereof, to
have all the rights, powers and duties set forth herein.

     SECTION 2.5. Initial Capital Contribution of Trust Estate. As of the date
of the Original Trust Agreement, the Seller sold, assigned, transferred,
conveyed and set over to the Owner Trustee the sum of $1. The Owner Trustee
hereby acknowledges receipt in trust from the Seller, as of such date, of the
foregoing contribution, which shall constitute the initial Trust Estate and
shall be deposited in the Collection Account.

     SECTION 2.6. Declaration of Trust. The Owner Trustee hereby declares that
it will hold the Trust Estate in trust upon and subject to the conditions set
forth herein for the use and benefit of the Certificateholder, subject to the
obligations of the Issuer under the Transaction Documents. It is the intention
of the parties hereto that the Issuer constitute a statutory trust under the
Statutory Trust Statute and that this Agreement constitute the governing
instrument of such statutory trust. It is the intention of the parties hereto
that, solely for income and franchise tax purposes, the Issuer will be
disregarded as an entity separate from the Seller, the Seller will be
disregarded as an entity separate from VCI and the Notes will be characterized
as debt. The parties agree that, unless otherwise required by appropriate tax
authorities, the Issuer will not file or cause to be filed annual or other
necessary returns, reports and other forms consistent with the characterization
of the Issuer as an entity separate from its owner. In the event that the
Issuer is deemed to have more than one beneficial owner for federal income tax
purposes, the Issuer will file returns, reports and other forms consistent with
the characterization of the Issuer as a partnership, and this Agreement shall
be amended to include such provisions as may be required under Subchapter K of
the Internal Revenue Code of 1986, as amended. Effective as of the date
hereof, the Owner Trustee shall have all rights, powers and duties set forth
herein and in the Statutory Trust Statute with respect to accomplishing the
purposes of the Issuer. The Owner Trustee filed the Certificate of Trust with
the Secretary of State of the State of Delaware as required by Section 3810(a)
of the Statutory Trust Statute. Notwithstanding anything herein or in the
Statutory Trust Statute to the contrary, it is the intention of the parties
hereto that the Issuer constitute a “business trust” within the meaning of
Section 101(9)(A)(v) of the Bankruptcy Code.

     SECTION 2.7. Organizational Expenses; Liabilities of the Holders.

		
	 	     (a) The Servicer shall pay organizational expenses of the Issuer as
they may arise.
	 
	 	     (b) No Certificateholder (including the Seller) shall have any
personal liability for any liability or obligation of the Issuer.

     SECTION 2.8. Title to the Trust Estate. Legal title to all the Trust
Estate shall be vested at all times in the Issuer as a separate legal entity,
except where applicable law in any jurisdiction requires title to any part of
the Trust Estate to be vested in a trustee or trustees, in which case title
shall be deemed to be vested in the Owner Trustee, a co-trustee and/or a
separate trustee, as the case may be.

3

 

     SECTION 2.9. Representations and Warranties of the Seller. The Seller
hereby represents and warrants to the Owner Trustee that:

		
	 	     (a) Existence and Power. The Seller is a Delaware limited liability
company validly existing and in good standing under the laws of the State
of Delaware and has, in all material respects, all power and authority
required to carry on its business as now conducted. The Seller has
obtained all necessary licenses and approvals in each jurisdiction where
the failure to do so would materially and adversely affect the ability of
the Seller to perform its obligations under the Transaction Documents and
the Underwriting Agreement.
	 
	 	     (b) Authorization and No Contravention. The execution, delivery and
performance by each Seller of each Transaction Document to which it is a
party (i) have been duly authorized by all necessary action on the part
of the Seller and (ii) do not contravene or constitute a default under
(A) any applicable law, rule or regulation, (B) its organizational
instruments or (C) any material agreement, contract, order or other
instrument to which it is a party or its property is subject (other than
violations of such laws, rules, regulations, indenture or agreements
which do not affect the legality, validity or enforceability of any of
such agreements and which, individually or in the aggregate, would not
materially and adversely affect the transactions contemplated by, or the
Seller’s ability to perform its obligations under, the Transaction
Documents to which it is a party).
	 
	 	     (c) No Consent Required. No approval, authorization or other action
by, or filing with, any Governmental Authority is required in connection
with the execution, delivery and performance by the Seller of any
Transaction Document other than UCC filings and other than approvals and
authorizations that have previously been obtained and filings which have
previously been made.
	 
	 	     (d) Binding Effect. Each Transaction Document and the Underwriting
Agreement to which the Seller is a party constitutes the legal, valid and
binding obligation of the Seller enforceable against the Seller in
accordance with its terms, except as such enforceability may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium,
receivership, conservatorship or other similar laws affecting creditors’
rights generally and, if applicable the rights of creditors of limited
liability companies from time to time in effect or by general principles
of equity or other similar laws of general application relating to or
affecting the enforcement of creditors’ rights generally and subject to
general principles of equity.
	 
	 	     (e) No Proceedings. There is no action, suit, proceeding or
investigation pending or, to the knowledge of the Seller, threatened
against the Seller which, either in any one instance or in the aggregate,
would result in any material adverse change in the business, operations,
financial condition, properties or assets of the Seller, or in any
material impairment of the right or ability of the Seller to carry on its
business substantially as now conducted, or in any material liability on
the part of the Seller, or which would render invalid this Agreement or
the Receivables or the obligations of the Seller

4

 

		
	 	contemplated herein, or which would materially impair the ability of
the Seller to perform under the terms of this Agreement or any other
Transaction Document.

     SECTION 2.10. Situs of Issuer. The Issuer shall be located in the State
of Delaware and administered in the State of Delaware or the State of New York.
All bank accounts maintained by the Owner Trustee on behalf of the Issuer
shall be located in the State of Delaware or the State of New York. The Issuer
shall not have any employees in any state; provided, however, that nothing
herein shall restrict or prohibit the Owner Trustee from having employees
within or without the State of Delaware. Payments will be received by the
Issuer only in Delaware or New York and payments will be made by the Issuer
only from Delaware or New York.

ARTICLE III

CERTIFICATE AND TRANSFER OF CERTIFICATE

     SECTION 3.1. Initial Ownership. Upon the formation of the Issuer and
until the issuance of the Certificate, the Seller is the sole beneficiary of
the Issuer; and upon the issuance of the Certificate, the Seller will no longer
be a beneficiary of the Issuer, except to the extent that the Seller is the
Certificateholder.

     SECTION 3.2. Authentication of Certificate. Concurrently with the sale of
the Transferred Assets to the Issuer pursuant to the Sale and Servicing
Agreement, the Owner Trustee shall cause the Certificate to be executed on
behalf of the Issuer, authenticated and delivered to or upon the written order
of the Seller, signed by its chairman of the board, its president, its chief
financial officer, its chief accounting officer, any vice president, its
secretary, any assistant secretary, its treasurer or any assistant treasurer,
without further corporate action by the Seller. The Certificate shall
represent 100% of the beneficial interest in the Issuer and shall be fully-paid
and nonassessable.

     SECTION 3.3. Form of the Certificate. The Certificate, upon original
issuance, will be issued in the form of a typewritten Certificate representing
a definitive Certificate and shall be registered in the name of “Volkswagen
Public Auto Loan Securitization, LLC” as the initial registered owner thereof.
The Owner Trustee shall execute and authenticate, or cause to be authenticated,
the definitive Certificate in accordance with the instructions of the Seller.

     SECTION 3.4. Registration of Certificates. The Owner Trustee shall
maintain at its office referred to in Section 2.2, or at the office of any
agent appointed by it and approved in writing by the Certificateholder at the
time of such appointment, a register for the registration and transfer of the
Certificate.

     SECTION 3.5. Transfer of Certificate. (a) The Certificateholder may
assign, convey or otherwise transfer all or any of its right, title and
interest in the Certificate; provided that (i) the Rating Agency Condition is
satisfied, (ii) the Owner Trustee and the Issuer receive an Opinion of Counsel
stating that, in the opinion of such counsel, such transfer (a) will not
adversely affect the tax characterization as debt of Notes of any outstanding
Class that were characterized as debt for federal income tax purposes at the
time of their issuance; (b) will not cause the Issuer to be deemed to be an
association (or publicly traded partnership) taxable as a corporation; and (c)
will

5

 

not cause or constitute an event in which gain or loss would be recognized
by any Noteholder, and (iii) the Certificate may not be acquired by or for the
account of or with the assets of (a) an employee benefit plan (as defined in
Section 3(3) of ERISA) that is subject to the provisions of Title I of ERISA,
(b) a plan described in Section 4975 of the Code or (c) any entity whose
underlying assets include plan assets by reason of a plan’s investment in the
entity. By accepting and holding the Certificate, the holder thereof shall be
deemed to have represented and warranted that it is not a Benefit Plan and is
not purchasing on behalf of a Benefit Plan. The Owner Trustee shall have no
duty to independently determine that the requirement in (iii) above is met and
shall incur no liability to any person in the event the holder of the
Certificate does not comply with such restrictions. Subject to the transfer
restrictions contained herein and in the Certificate, the Certificateholder may
transfer all or any portion of the beneficial interest in the Issuer evidenced
by such Certificate upon surrender thereof to the Owner Trustee accompanied by
the documents required by this Section. Such transfer may be made by the
registered Certificateholder in person or by his attorney duly authorized in
writing upon surrender of the Certificate to the Owner Trustee accompanied by a
written instrument of transfer and with such signature guarantees and evidence
of authority of the Persons signing the instrument of transfer as the Owner
Trustee may reasonably require. Promptly upon the receipt of such documents
and receipt by the Owner Trustee of the transferor’s Certificate, the Owner
Trustee shall record the name of such transferee as a Certificateholder and its
percentage of beneficial interest in the Issuer in the Certificate register and
issue, execute and deliver to such Certificateholder a Certificate evidencing
such beneficial interest in the Issuer. In the event a transferor transfers
only a portion of its beneficial interest in the Issuer, the Owner Trustee
shall register and issue, to such transferor a new Certificate evidencing such
transferor’s new percentage of beneficial interest in the issuer. Subsequent
to a transfer and upon the issuance of the new Certificate or Certificates, the
Owner Trustee shall cancel and destroy the Certificate surrendered to it in
connection with such transfer. The Owner Trustee may treat the Person in whose
name any Certificate is registered as the sole owner of the beneficial interest
in the Issuer evidenced by such Certificate.

		
	 	     (a) As a condition precedent to any registration of transfer under
this Section 3.5, the Owner Trustee may require the payment of a sum
sufficient to cover the payment of any tax or taxes or other governmental
charges required to be paid in connection with such transfer.
	 
	 	     (b) The Owner Trustee shall not be obligated to register any
transfer of a Certificate unless each of the transferor and the
transferee have certified to the Owner Trustee that such transfer does
not violate any of the transfer restrictions stated herein. The Owner
Trustee shall not be liable to any Person for registering any transfer
based on such certifications.

     SECTION 3.6. Lost, Stolen, Mutilated or Destroyed Certificates. If (i)
any mutilated Certificate is surrendered to the Owner Trustee, or (ii) the
Owner Trustee receives evidence to its satisfaction that any Certificate has
been destroyed, lost or stolen, and upon proof of ownership satisfactory to the
Owner Trustee together with such security or indemnity as may be requested by
the Owner Trustee to save it harmless, the Owner Trustee shall execute and
deliver a new Certificate for the same percentage of beneficial interest in the
Issuer as the Certificate so mutilated, destroyed, lost or stolen, of like
tenor and bearing a different issue number, with such

6

 

notations, if any, as the Owner Trustee shall determine. Upon the
issuance of any new Certificate under this Section 3.6, the Issuer or Owner
Trustee may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any transfer or
exchange of the Certificate and any other reasonable expenses (including the
reasonable fees and expenses of the Issuer and the Owner Trustee) connected
therewith. Any duplicate Certificate issued pursuant to this Section 3.6 shall
constitute complete and indefeasible evidence of ownership in the Issuer, as if
originally issued, whether or not the lost, stolen or destroyed Certificate
shall be found at any time.

ARTICLE IV

ACTIONS BY OWNER TRUSTEE

     SECTION 4.1. Prior Notice to Certificateholder with Respect to Certain
Matters. With respect to the following matters, the Owner Trustee shall not
take action unless at least 30 days before the taking of such action, the Owner
Trustee shall have notified the Certificateholder in writing of the proposed
action and the Certificateholder shall not have notified the Owner Trustee in
writing prior to the 30th day after such notice is given that the
Certificateholder has withheld consent or provided alternative direction:

		
	 	     (a) the amendment of the Indenture by a supplemental indenture in
circumstances where the consent of any Noteholder is required;
	 
	 	     (b) the amendment of the Indenture by a supplemental indenture in
circumstances where the consent of any Noteholder is not required and
such amendment materially adversely affects the interests of the
Certificateholder;
	 
	 	     (c) the amendment, change or modification of the Sale and Servicing
Agreement, or the Administration Agreement, except to cure any ambiguity
or defect or to amend or supplement any provision in a manner that would
not materially adversely affect the interests of the Certificateholder;
or
	 
	 	     (d) the appointment pursuant to the Indenture of a successor
Indenture Trustee or the consent to the assignment by the Note Registrar
or the Indenture Trustee of its obligations under the Indenture or this
Agreement, as applicable.

     SECTION 4.2. Action by Certificateholder with Respect to Certain Matters.
The Owner Trustee shall not have the power, except upon the direction of the
Certificateholder, to (a) except as expressly provided in the Transaction
Documents, sell the Collateral after the termination of the Indenture in
accordance with its terms, (b) remove the Administrator under the
Administration Agreement pursuant to Section 8 thereof or (c) appoint a
successor Administrator pursuant to Section 8 of the Administration Agreement.
The Owner Trustee shall take the actions referred to in the preceding sentence
only upon written instructions signed by the Certificateholder.

     SECTION 4.3. Action by Certificateholder with Respect to Bankruptcy. The
Owner Trustee shall not have the power to commence a voluntary proceeding in
bankruptcy relating to the Issuer until one year and one day after the
Outstanding Amount of all the Notes has been

7

 

reduced to zero and without the prior written approval of the
Certificateholder and the delivery to the Owner Trustee by the
Certificateholder of a certificate certifying that the Certificateholder
reasonably believes that the Issuer is insolvent.

     SECTION 4.4. Restrictions on Certificateholder’s Power. The
Certificateholder shall not direct the Owner Trustee to take or refrain from
taking any action if such action or inaction would be contrary to any
obligation of the Issuer or the Owner Trustee under this Agreement or any of
the Transaction Documents or would be contrary to Section 2.3, nor shall the
Owner Trustee be obligated to follow any such direction, if given.

     SECTION 4.5. Majority Control. To the extent that there is more than one
Certificateholder, any action which may be taken or consent or instructions
which may be given by the Certificateholder under this Agreement may be taken
by Certificateholders holding in the aggregate a percentage of the beneficial
interest in the Issuer equal to more than 50% of the beneficial interest in the
Issuer at the time of such action.

ARTICLE V

APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

     SECTION 5.1. Application of Trust Funds. Distributions on the Certificate
shall be made in accordance with the provisions of the Indenture and the Sale
and Servicing Agreement. Subject to the Lien of the Indenture, the Owner
Trustee shall promptly distribute to the Certificateholder all other amounts
(if any) received by the Issuer or the Owner Trustee in respect of the Trust
Estate. After the termination of the Indenture in accordance with its terms,
the Owner Trustee shall distribute all amounts received (if any) by the Issuer
and the Owner Trustee in respect of the Trust Estate at the direction of the
Certificateholder.

     SECTION 5.2. Method of Payment. Subject to the Indenture, distributions
required to be made to the Certificateholder on any Payment Date and all
amounts received by the Issuer or the Owner Trustee on any other date that are
payable to the Certificateholder pursuant to this Agreement or any other
Transaction Document shall be made to the Certificateholder by wire transfer,
in immediately available funds, to the account of the Certificateholder
designated by the Certificateholder to the Owner Trustee and Indenture Trustee
in writing.

     SECTION 5.3. Sarbanes-Oxley Act. Notwithstanding anything to the contrary
herein or in any Transaction Document, the Owner Trustee shall not be required
to execute, deliver or certify in accordance with the provisions of the
Sarbanes-Oxley Act on behalf of the Issuer or any other Person, any periodic
reports filed pursuant to the Exchange Act, or any other documents pursuant to
the Sarbanes-Oxley Act.

     SECTION 5.4. Signature on Returns. Subject to Section 2.6, the
Certificateholder shall sign on behalf of the Issuer the tax returns of the
Issuer, unless applicable law requires the Owner Trustee to sign such
documents, in which case such documents shall be signed by the Owner Trustee at
the written direction of the Certificateholder.

8

 

ARTICLE VI

AUTHORITY AND DUTIES OF OWNER TRUSTEE

     SECTION 6.1. General Authority. The Owner Trustee is authorized and
directed to execute and deliver the Transaction Documents to which the Issuer
is named as a party, and each certificate or other document attached as an
exhibit to or contemplated by the Transaction Documents to which the Issuer or
the Owner Trustee is named as a party and any amendment thereto, in each case,
in such form as the Seller shall approve, as evidenced conclusively by the
Owner Trustee’s execution thereof, and at the written direction of the Seller,
to direct the Indenture Trustee to authenticate and deliver Class A-1 Notes in
the aggregate principal amount of $269,000,000, Class A-2 Notes in the
aggregate principal amount of $345,000,000, Class A-3 Notes in the aggregate
principal amount of $368,000,000, Class A-4 Notes in the aggregate principal
amount of $279,315,000 and Class B Notes in the aggregate principal amount of
$29,033,164.85. In addition to the foregoing, the Owner Trustee is authorized,
but shall not be obligated, to take all actions required of the Issuer pursuant
to the Transaction Documents. The Owner Trustee is further authorized from
time to time to take such action as the Seller or the Administrator recommends
or directs in writing with respect to the Transaction Documents, except to the
extent that this Agreement expressly requires the consent of the
Certificateholder for such action.

     SECTION 6.2. General Duties. It shall be the duty of the Owner Trustee to
discharge (or cause to be discharged) all of its responsibilities pursuant to
the terms of this Agreement and the other Transaction Documents and to
administer the Issuer in the interest of the Certificateholder, subject to
Transaction Documents, and in accordance with the provisions of this Agreement.
Notwithstanding the foregoing, the Owner Trustee shall be deemed to have
discharged its duties and responsibilities hereunder and under the Transaction
Documents to the extent the Administrator has agreed in the Administration
Agreement to perform any act or to discharge any duty of the Issuer or the
Owner Trustee hereunder or under any Transaction Document, and the Owner
Trustee shall not be liable for the default or failure of the Administrator to
carry out its obligations under the Administration Agreement and shall have no
duty to monitor the performance of the Administrator or any other Person under
the Administration Agreement or any other document. The Owner Trustee shall
have no obligation to administer, service or collect the Receivables or to
maintain, monitor or otherwise supervise the administration, servicing or
collection of the Receivables. The Owner Trustee shall not be required to
perform any of the obligations of the Issuer under any Transaction Document
that are required to be performed by the Servicer, the Seller, the
Administrator or the Indenture Trustee.

     SECTION 6.3. Action upon Instruction. (a) Subject to Article IV, and in
accordance with the Transaction Documents, the Certificateholder may, by
written instruction, direct the Owner Trustee in the management of the Issuer.
Such direction may be exercised at any time by written instruction of the
Certificateholder pursuant to Article IV.

		
	 	     (b) Subject to Section 7.1, the Owner Trustee shall not be required
to take any action hereunder or under any Transaction Document if the
Owner Trustee shall have reasonably determined or been advised by counsel
that such action is likely to result in

9

 

		
	 	liability on the part of the Owner Trustee or is contrary to the
terms hereof or of any Transaction Document or is otherwise contrary to
law.
	 
	 	     (c) Whenever the Owner Trustee is unable to decide between
alternative courses of action permitted or required by the terms of this
Agreement or any Transaction Document or is unsure as to the application
of any provision of this Agreement or any Transaction Document or any
such provision is ambiguous as to its application, or is, or appears to
be, in conflict with any other applicable provision, or in the event that
this Agreement permits any determination by the Owner Trustee or is
silent or is incomplete as to the course of action that the Owner Trustee
is required to take with respect to a particular set of facts, the Owner
Trustee shall promptly give notice (in such form as shall be appropriate
under the circumstances) to the Certificateholder requesting instruction
as to the course of action to be adopted or application of such
provision, and to the extent the Owner Trustee acts or refrains from
acting in good faith in accordance with any written instruction of the
Certificateholder received, the Owner Trustee shall not be liable on
account of such action or inaction to any Person. If the Owner Trustee
shall not have received appropriate instruction within ten days of such
notice (or within such shorter period of time as reasonably may be
specified in such notice or may be necessary under the circumstances) it
may, but shall be under no duty to, take or refrain from taking such
action, not inconsistent with this Agreement or the Transaction
Documents, as it shall deem to be in the best interests of the
Certificateholder, and shall have no liability to any Person for such
action or inaction.
	 
	 	     (d) The Owner Trustee shall be under no obligation to exercise any
of the rights or powers vested in it by this Agreement, or to institute,
conduct or defend any litigation, at the request, order or direction of
the Certificateholder or any other Person, unless such Certificateholder
or such Person has offered to the Owner Trustee security or indemnity
satisfactory to it against the costs, expenses and liabilities that may
be incurred by the Owner Trustee (including, without limitation, the
reasonable fees and expenses of its counsel) therein or thereby,
including such advances as the Owner Trustee shall reasonably request.

       SECTION 6.4. No Duties Except as Specified in this Agreement or in
Instructions. The Owner Trustee shall not have any duty or obligation to
manage, make any payment with respect to, register, record, sell, dispose of,
or otherwise deal with the Trust Estate, or to otherwise take or refrain from
taking any action under, or in connection with, any document contemplated
hereby to which the Issuer or the Owner Trustee is a party, except as expressly
provided by the terms of this Agreement or in any document or written
instruction received by the Owner Trustee pursuant to Section 6.3; and no
implied duties or obligations shall be read into this Agreement or any
Transaction Document against the Owner Trustee. The Owner Trustee shall have
no responsibility for filing any financing or continuation statement in any
public office at any time or to otherwise perfect or maintain the perfection of
any security interest or Lien granted to it hereunder or to prepare or file any
Commission filing for the Issuer or to record this Agreement or any Transaction
Document. BNY nevertheless agrees that it will, at its own cost and expense,
promptly take all action as may be necessary to discharge any Liens on any part
of the Trust Estate that result from actions by, or claims against, BNY that
are not related to the ownership or

10

 

the administration of the Trust Estate. The Owner Trustee shall have no
responsibility or liability for or with respect to the genuineness, value,
sufficiency or validity of the Trust Estate.

     SECTION 6.5. No Action Except under Specified Documents or Instructions.
The Owner Trustee shall not manage, control, use, sell, dispose of or otherwise
deal with any part of the Trust Estate except (i) in accordance with the powers
granted to and the authority conferred upon the Owner Trustee pursuant to this
Agreement, (ii) in accordance with the Transaction Documents and (iii) in
accordance with any document or instruction delivered to the Owner Trustee
pursuant to Section 6.3.

     SECTION 6.6. Restrictions. The Owner Trustee shall not take any action
(a) that is inconsistent with the purposes of the Issuer set forth in Section
2.3 or (b) that, to the actual knowledge of a Responsible Officer of the Owner
Trustee, would (i) affect the treatment of the Notes as indebtedness for
federal income, state and local income and franchise tax purposes, (ii) be
deemed to cause a taxable exchange of the Notes for federal income or state
income or franchise tax purposes or (iii) cause the Issuer or any portion
thereof to be treated as an association or publicly traded partnership taxable
as a corporation for federal income, state and local income or franchise tax
purposes. The Certificateholder shall not direct the Owner Trustee to take
action that would violate the provisions of this Section.

ARTICLE VII

CONCERNING OWNER TRUSTEE

     SECTION 7.1. Acceptance of Trusts and Duties. The Owner Trustee accepts
the trusts hereby created and agrees to perform its duties hereunder with
respect to such trusts but only upon the terms of this Agreement. The Owner
Trustee also agrees to disburse all moneys actually received by it constituting
part of the Trust Estate upon the terms of the Transaction Documents and this
Agreement. The Owner Trustee shall not be personally liable or accountable
hereunder or under any Transaction Document under any circumstances
notwithstanding anything herein or in the Transaction Documents to the
contrary, except (i) for its own willful misconduct, bad faith or negligence,
(ii) in the case of the inaccuracy of any representation or warranty contained
in Section 7.3 expressly made by BNY in its individual capacity, (iii) for
liabilities arising from the failure of BNY to perform obligations expressly
undertaken by it in the last sentence of Section 6.4 or (iv) for taxes, fees or
other charges on, based on or measured by, any fees, commissions or
compensation received by the Owner Trustee. In particular, but not by way of
limitation of the foregoing:

		
	 	     (i) The Owner Trustee shall not be personally liable for any
error of judgment made in good faith by any of its officers or
employees unless it is proved that such persons were negligent in
ascertaining the pertinent facts;
	 
	 	     (ii) No provision of this Agreement shall require the Owner
Trustee to expend or risk its personal funds or otherwise incur any
financial liability in the exercise of its rights or powers
hereunder;

11

 

		
	 	     (iii) Under no circumstances shall the Owner Trustee be
personally liable for any representation, warranty, covenant,
obligation or indebtedness of the Issuer, and
	 
	 	     (iv) The Owner Trustee shall not be personally responsible for
or in respect of the validity or sufficiency of this Agreement or
for the due execution hereof by any Person other than the Owner
Trustee.

     SECTION 7.2. Furnishing of Documents. The Owner Trustee shall furnish to
the Certificateholder promptly upon receipt of a written request therefor,
duplicates or copies of all reports, notices, requests, demands, certificates,
financial statements and any other instruments furnished to the Owner Trustee
under the Transaction Documents.

     SECTION 7.3. Representations and Warranties. BNY hereby represents and
warrants to the Seller for the benefit of the Certificateholder, that:

		
	 	     (a) It is a banking corporation duly incorporated and validly
existing in good standing under the laws of the State of Delaware and
having an office within the State of Delaware. It has all requisite
corporate power and authority to execute, deliver and perform its
obligations under this Agreement.
	 
	 	     (b) It has taken all corporate action necessary to authorize the
execution and delivery by it of this Agreement, and this Agreement will
be executed and delivered by one of its officers who is duly authorized
to execute and deliver this Agreement on its behalf.
	 
	 	     (c) This Agreement constitutes a legal, valid and binding obligation
of the Owner Trustee, enforceable against the Owner Trustee in accordance
with its terms, subject, as to enforceability, to applicable bankruptcy,
insolvency, reorganization, conservatorship, receivership, liquidation
and other similar laws affecting enforcement of the rights of creditors
of banks generally and to equitable limitations on the availability of
specific remedies.
	 
	 	     (d) Neither the execution nor the delivery by it of this Agreement,
nor the consummation by it of the transactions contemplated hereby nor
compliance by it with any of the terms or provisions hereof will
contravene any federal or Delaware law, governmental rule or regulation
governing the banking or trust powers of the Owner Trustee or any
judgment or order binding on it, or constitute any default under its
charter documents or by-laws.

     SECTION 7.4. Reliance; Advice of Counsel. (a) The Owner Trustee shall
incur no personal liability to anyone in acting upon any signature, instrument,
notice, resolution, request, consent, order, certificate, report, opinion, bond
or other document or paper believed by it to be genuine and believed by it to
be signed by the proper party or parties. The Owner Trustee may accept a
certified copy of a resolution of the board of directors or other governing
body of any corporate party as conclusive evidence that such resolution has
been duly adopted by such body and that the same is in full force and effect.
As to any fact or matter the method of the determination of which is not
specifically prescribed herein, the Owner Trustee may for all

12

 

purposes hereof rely on a certificate, signed by the president or any vice
president or by the treasurer, secretary or other Authorized Officers of the
relevant party, as to such fact or matter, and such certificate shall
constitute full protection to the Owner Trustee for any action taken or omitted
to be taken by it in good faith in reliance thereon.

		
	 	     (b) In the exercise or administration of the trusts hereunder and in
the performance of its duties and obligations under this Agreement or the
Transaction Documents, the Owner Trustee (i) may act directly or through
its agents or attorneys pursuant to agreements entered into with any of
them, but the Owner Trustee shall not be personally liable for the
conduct or misconduct of such agents, custodians, nominees (including
persons acting under a power of attorney) or attorneys selected with
reasonable care and (ii) may consult with counsel, accountants and other
skilled persons knowledgeable in the relevant area to be selected with
reasonable care and employed by it at the expense of the Issuer. The
Owner Trustee shall not be personally liable for anything done, suffered
or omitted in good faith by it in accordance with the written opinion or
advice of any such counsel, accountants or other such persons.

     SECTION 7.5. Not Acting in Individual Capacity. Except as provided in
this Article VII, in accepting the trusts hereby created, BNY acts solely as
the Owner Trustee hereunder and not in its individual capacity and all Persons
having any claim against the Owner Trustee by reason of the transactions
contemplated by this Agreement or any Transaction Document shall look only to
the Trust Estate for payment or satisfaction thereof.

     SECTION 7.6. The Owner Trustee May Own Notes. The Owner Trustee in its
individual or any other capacity may become the owner or pledgee of Notes. The
Owner Trustee may deal with the Seller, the Indenture Trustee, the
Administrator and their respective Affiliates in banking transactions with the
same rights as it would have if it were not the Owner Trustee, and the Seller,
the Indenture Trustee, the Administrator and their respective Affiliates may
maintain normal commercial banking relationships with the Owner Trustee and its
Affiliates.

ARTICLE VIII

COMPENSATION OF OWNER TRUSTEE

     SECTION 8.1. The Owner Trustee’s Compensation. The Issuer shall cause the
Servicer to pay to BNY pursuant to Section 3.11 of the Sale and Servicing
Agreement from time to time compensation for all services rendered by BNY under
this Agreement pursuant to a fee letter between the Servicer and the Owner
Trustee (which compensation shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust). The Servicer,
pursuant to Section 3.11 of the Sale and Servicing Agreement and the fee letter
between the Servicer and the Owner Trustee, shall reimburse BNY upon its
request for all reasonable expenses, disbursements and advances incurred or
made by BNY in accordance with any provision of this Agreement (including the
reasonable compensation, expenses and disbursements of such agents, experts and
counsel as BNY may employ in connection with the exercise and performance of
its rights and its duties hereunder), except any such expense may be
attributable to its willful misconduct, negligence (other than an error in
judgment) or bad faith.

13

 

To the extent not paid by the Servicer, such fees and reasonable expenses
shall be paid in accordance with Section 4.4 of the Sale and Servicing
Agreement.

     SECTION 8.2. Indemnification. The Seller shall cause the Servicer to
indemnify BNY in its individual capacity and as trustee and its successors,
assigns, directors, officers, employees and agents (the “Indemnified Parties”)
from and against, any and all loss, liability, expense, tax, penalty or claim
(including reasonable legal fees and expenses) of any kind and nature
whatsoever which may at any time be imposed on, incurred by, or asserted
against BNY in its individual capacity and as trustee or any Indemnified Party
in any way relating to or arising out of this Agreement, the Transaction
Documents, the Trust Estate, the administration of the Trust Estate or the
action or inaction of BNY hereunder; provided, however, that neither the Seller
nor the Servicer shall be liable for or required to indemnify BNY from and
against any of the foregoing expenses arising or resulting from (i) BNY’s own
willful misconduct, bad faith or negligence, (ii) the inaccuracy of any
representation or warranty contained in Section 7.3 expressly made by BNY in
its individual capacity, (iii) liabilities arising from the failure of BNY to
perform obligations expressly undertaken by it in the last sentence of Section
6.4 or (iv) taxes, fees or other charges on, based on or measured by, any fees,
commissions or compensation received by the Owner Trustee. To the extent not
paid by the Servicer, such indemnification shall be paid in accordance with
Section 4.4 of the Sale and Servicing Agreement.

     SECTION 8.3. Payments to the Owner Trustee. Any amounts paid to the Owner
Trustee pursuant to this Article VIII and the Sale and Servicing Agreement
shall be deemed not to be a part of the Trust Estate immediately after such
payment.

ARTICLE IX

TERMINATION OF TRUST AGREEMENT

     SECTION 9.1. Termination of Trust Agreement. The Issuer shall dissolve
upon the later of (a) the final distribution by the Owner Trustee of all moneys
or other property or proceeds of the Trust Estate in accordance with the terms
of the Indenture, the Sale and Servicing Agreement and Article V and (b) the
discharge of the Indenture in accordance with Article IV of the Indenture. The
bankruptcy, liquidation, dissolution, death or incapacity of the
Certificateholder shall not (x) operate to terminate this Agreement or the
Issuer, nor (y) entitle the Certificateholder’s legal representatives or heirs
to claim an accounting or to take any action or proceeding in any court for a
partition or winding up of all or any part of the Issuer or Trust Estate nor
(z) otherwise affect the rights, obligations and liabilities of the parties
hereto.

     SECTION 9.2. Dissolution of the Issuer. Upon dissolution of the Issuer,
the Administrator on behalf of the Owner Trustee shall wind up the business and
affairs of the Issuer as required by Section 3808 of the Statutory Trust
Statute. Upon the satisfaction and discharge of the Indenture, and receipt of
a certificate from the Indenture Trustee stating that all Noteholders have been
paid in full and that the Indenture Trustee is aware of no claims remaining
against the Issuer in respect of the Indenture and the Notes, the Owner
Trustee, in the absence of actual knowledge of any other claim against the
Issuer and at the written direction of the Certificateholder, shall be deemed
to have made reasonable provision to pay all claims and obligations (including
conditional, contingent or unmatured obligations) for purposes of Section

14

 

3808(e) of the Statutory Trust Statute and shall cause the Certificate of
Trust to be cancelled by filing a certificate of cancellation with the Delaware
Secretary of State in accordance with the provisions of Section 3810 of the
Statutory Trust Statute, at which time the Issuer shall terminate and this
Agreement (other than Article VIII) shall be of no further force or effect.

     SECTION 9.3. Limitations on Termination. Except as provided in Section
9.1, neither the Seller nor the Certificateholder shall be entitled to revoke
or terminate the Issuer.

ARTICLE X

SUCCESSOR OWNER TRUSTEES AND ADDITIONAL

OWNER TRUSTEES

     SECTION 10.1. Eligibility Requirements for the Owner Trustee. The Owner
Trustee shall at all times be a bank (i) authorized to exercise corporate trust
powers, (ii) having a combined capital and surplus of at least $50,000,000 and
(iii) subject to supervision or examination by Federal or state authorities.
If such bank shall publish reports of condition at least annually, pursuant to
law or to the requirements of the aforesaid supervising or examining authority,
then for the purpose of this Section, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. The Owner Trustee shall
at all times be an institution satisfying the provisions of Section 3807(a) of
the Statutory Trust Statute. In case at any time the Owner Trustee shall cease
to be eligible in accordance with the provisions of this Section, the Owner
Trustee shall resign immediately in the manner and with the effect specified in
Section 10.2.

     SECTION 10.2. Resignation or Removal of the Owner Trustee. The Owner
Trustee may at any time resign and be discharged from the trusts hereby created
by giving written notice thereof to the Seller, the Administrator, the
Servicer, the Indenture Trustee and the Certificateholder. Upon receiving such
notice of resignation, the Seller and the Administrator, acting jointly, shall
promptly appoint a successor Owner Trustee which satisfies the eligibility
requirements set forth in Section 10.1 by written instrument, in duplicate, one
copy of which instrument shall be delivered to the resigning Owner Trustee and
one copy to the successor Owner Trustee. If no successor Owner Trustee shall
have been so appointed and have accepted appointment within 30 days after the
giving of such notice of resignation, the resigning Owner Trustee may petition
any court of competent jurisdiction for the appointment of a successor Owner
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 Owner
Trustee from any obligations otherwise imposed on it under the Transaction
Documents until such successor has in fact assumed such appointment.

     If at any time the Owner Trustee shall cease to be eligible in accordance
with the provisions of Section 10.1 and shall fail to resign after written
request therefor by the Seller or the Administrator, or if at any time the
Owner Trustee shall be legally unable to act, or shall be adjudged bankrupt or
insolvent, or a receiver of the Owner Trustee or of its property shall be
appointed, or any public officer shall take charge or control of the Owner
Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then the Seller or the Administrator may remove
the Owner Trustee. If the Seller or the Administrator shall

15

 

remove the Owner Trustee under the authority of the immediately preceding
sentence, the Seller and the Administrator, acting jointly, shall promptly
appoint a successor Owner Trustee by written instrument, in duplicate, one copy
of which instrument shall be delivered to the outgoing Owner Trustee so removed
and one copy to the successor Owner Trustee and shall pay all fees owed to the
outgoing Owner Trustee.

     Any resignation or removal of the Owner Trustee and appointment of a
successor Owner Trustee pursuant to any of the provisions of this Section shall
not become effective until acceptance of appointment by the successor Owner
Trustee pursuant to Section 10.3 and payment of all fees and expenses owed to
the outgoing Owner Trustee. The Seller shall provide (or shall cause to be
provided) notice of such resignation or removal of the Owner Trustee to each of
the Rating Agencies.

     SECTION 10.3. Successor Owner Trustee. Any successor Owner Trustee
appointed pursuant to Section 10.2 shall execute, acknowledge and deliver to
the Seller, the Administrator and to its predecessor Owner Trustee an
instrument accepting such appointment under this Agreement, and thereupon the
resignation or removal of the predecessor Owner Trustee shall become effective
and such successor Owner 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 the Owner Trustee. The predecessor Owner Trustee shall upon payment
of its fees and expenses deliver to the successor Owner Trustee all documents
and statements and monies held by it under this Agreement; and the Seller and
the predecessor Owner 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 Owner Trustee all such rights, powers, duties
and obligations.

     No successor Owner Trustee shall accept appointment as provided in this
Section unless at the time of such acceptance such successor Owner Trustee
shall be eligible pursuant to Section 10.1.

     Upon acceptance of appointment by a successor Owner Trustee pursuant to
this Section, the Seller shall mail (or shall cause to be mailed) notice of the
successor of such Owner Trustee to the Certificateholder, Indenture Trustee,
the Noteholders and each of the Rating Agencies. If the Seller shall fail to
mail (or cause to be mailed) such notice within 10 days after acceptance of
appointment by the successor Owner Trustee, the successor Owner Trustee shall
cause such notice to be mailed at the expense of the Seller.

     SECTION 10.4. Merger or Consolidation of the Owner Trustee. Any
corporation into which the Owner Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Owner Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Owner 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 Owner
Trustee hereunder; provided that such corporation shall be eligible pursuant to
Section 10.1; and provided further that the Owner

16

 

Trustee shall mail notice of such merger or consolidation to the Seller,
the Administrator and the Rating Agencies.

     SECTION 10.5. Appointment of Co-Trustee or Separate Trustee.
Notwithstanding any other provisions of this Agreement, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any part
of the Trust Estate may at the time be located, the Seller and the Owner
Trustee acting jointly shall have the power and shall execute and deliver all
instruments to appoint one or more Persons approved by the Owner Trustee to act
as co-trustee, jointly with the Owner Trustee, or separate trustee or separate
trustees, of all or any part of the Trust Estate, and to vest in such Person,
in such capacity, such title to the Issuer, or any part thereof, and, subject
to the other provisions of this Section, such powers, duties, obligations,
rights and trusts as the Seller and the Owner Trustee may consider necessary or
desirable. If the Seller shall not have joined in such appointment within 15
days after the receipt by it of a request so to do, the Owner Trustee alone
shall have the power to make such appointment. No co-trustee or separate
trustee under this Agreement shall be required to meet the terms of eligibility
as a successor trustee pursuant to Section 10.1 and no notice of the
appointment of any co-trustee or separate trustee shall be required pursuant to
Section 10.3.

     Each separate trustee and co-trustee shall, to the extent permitted by
law, be appointed and act subject to the following provisions and conditions:

		
	 	     (i) all rights, powers, duties and obligations conferred or
imposed upon the Owner Trustee shall be conferred upon and
exercised or performed by the Owner Trustee and such separate
trustee or co-trustee jointly (it being understood that such
separate trustee or co-trustee is not authorized to act separately
without the Owner Trustee joining in such act), except to the
extent that under any law of any jurisdiction in which any
particular act or acts are to be performed, the Owner Trustee shall
be incompetent or unqualified to perform such act or acts, in which
event such rights, powers, duties and obligations (including the
holding of title to the Issuer or any portion thereof in any such
jurisdiction) shall be exercised and performed singly by such
separate trustee or co-trustee, but solely at the direction of the
Owner Trustee;
	 
	 	     (ii) no trustee under this Agreement shall be personally
liable by reason of any act or omission of any other trustee under
this Agreement; and
	 
	 	     (iii) the Seller and the Owner Trustee acting jointly may at
any time accept the resignation of or remove any separate trustee
or co-trustee.

     Any notice, request or other writing given to the Owner Trustee shall be
deemed to have been given to each of the then separate trustees and
co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Agreement and
the conditions of this Article. Each separate trustee and co-trustee, upon its
acceptance of the trusts conferred, shall be vested with the estates or
property specified in its instrument of appointment, either jointly with the
Owner Trustee or separately, as may be provided therein, subject to all the
provisions of this Agreement, specifically including every provision of this
Agreement relating to the conduct of, affecting the liability of, or affording

17

 

protection to, the Owner Trustee. Each such instrument shall be filed
with the Owner Trustee and copies thereof given to the Seller and the
Administrator.

     Any separate trustee or co-trustee may at any time appoint the Owner
Trustee, its agent or attorney-in-fact with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. If any separate trustee or co-trustee
shall become incapable of acting, resign or be removed, all of its estates,
properties, rights, remedies and trusts shall vest in and be exercised by the
Owner Trustee, to the extent permitted by law, without the appointment of a new
or successor trustee. The Owner Trustee shall have no obligation to determine
whether a co-trustee or separate trustee is legally required in any
jurisdiction in which any part of the Trust Estate may be located.

ARTICLE XI

MISCELLANEOUS

     SECTION 11.1. Amendments.

		
	 	     (a) Any term or provision of this Agreement may be amended by the
Seller and the Owner Trustee without the consent of the Indenture
Trustee, any Noteholder or the Issuer; provided that such amendment shall
not, as evidenced by an Opinion of Counsel delivered to the Indenture
Trustee materially and adversely affect the interests of the Noteholders.
	 
	 	     (b) Any term or provision of this Agreement may be amended by the
Seller and the Owner Trustee, without the consent of the Indenture
Trustee, any Noteholder, the Issuer or any other Person to add, modify or
eliminate any provisions as may be necessary or advisable in order to
enable the Seller, the Servicer or any of their Affiliates to comply with
or obtain more favorable treatment under any law or regulation or any
accounting rule or principle, it being a condition to any such amendment
that the Rating Agency Condition shall have been satisfied.
	 
	 	     (c) This Agreement may also be amended from time to time by the
Seller and the Owner Trustee, with the consent of the Holders of Notes
evidencing not less than a majority of the aggregate principal amount of
the Outstanding Notes, voting as a single class, for the purpose of
adding any provisions to or changing in any manner or eliminating any of
the provisions of this Agreement or of modifying in any manner the rights
of the Noteholders. The manner of obtaining such consents (and any other
consents of Noteholders provided for in this Agreement) and of evidencing
the authorization of the execution thereof by Noteholders will be subject
to such reasonable requirements as the Indenture Trustee may prescribe,
including the establishment of record dates pursuant to the Note
Depository Agreement.
	 
	 	     (d) Prior to the execution of any such amendment, the Seller shall
provide written notification of the substance of such amendment to each
Rating Agency and the Owner Trustee; and promptly after the execution of
any such amendment or consent, the Seller

18

 

		
	 	shall furnish a copy of such amendment or consent to each Rating
Agency, the Owner Trustee and the Indenture Trustee.
	 
	 	     (e) Prior to the execution of any amendment to this Agreement, the
Owner Trustee shall be entitled to receive and conclusively rely upon an
Opinion of Counsel stating that the execution of such amendment is
authorized or permitted by this Agreement and that all conditions
precedent to the execution and delivery of such amendment have been
satisfied. The Owner Trustee may, but shall not be obligated to, enter
into any such amendment which affects the Owner Trustee’s own rights,
duties or immunities under this Agreement.

     SECTION 11.2. No Legal Title to Trust Estate in Certificateholder. The
Certificateholder shall not have legal title to any part of the Trust Estate.
The Certificateholder shall be entitled to receive distributions with respect
to its undivided beneficial interest therein only in accordance with Articles V
and IX. No transfer, by operation of law or otherwise, of any right, title or
interest of the Certificateholder to and in its ownership interest in the Trust
Estate shall operate to terminate this Agreement or the trusts hereunder or
entitle any transferee to an accounting or to the transfer to it of legal title
to any part of the Trust Estate.

     SECTION 11.3. Limitations on Rights of Others. The provisions of this
Agreement are solely for the benefit of the Owner Trustee, the Seller, the
Administrator, the Certificateholder and, to the extent expressly provided
herein, the Indenture Trustee and the Noteholders, and nothing in this
Agreement, whether express or implied, shall be construed to give to any other
Person any legal or equitable right, remedy or claim in the Trust Estate or
under or in respect of this Agreement or any covenants, conditions or
provisions contained herein.

     SECTION 11.4. Notices. (a) Unless otherwise expressly specified or
permitted by the terms hereof, all notices shall be in writing and shall be
deemed given by telecopy with receipt acknowledged by the recipient thereof or
upon receipt personally delivered, delivered by overnight courier or mailed
certified mail, return receipt requested, if to the Owner Trustee, addressed to
The Bank of New York (Delaware), P.O. Box 6873, White Clay Center, Route 273,
Newark, Delaware 19714, Attention: Kris Gullo (Tel: 302-283-8079; Fax:
302-283-8279), with a copy to the Corporate Trust Office; if to the Seller,
addressed to 3800 Hamlin Road, Auburn Hills, Michigan 48326 (Tel: (248)
754-5360; Fax: (248) 754-5360), Attention: Treasurer, with a copy to 3800
Hamlin Road, Auburn Hills, Michigan 48326 (Tel: (248) 754-5360; Fax: (248)
754-5360), Attention: General Counsel; if to the Administrator, addressed to
3800 Hamlin Road, Auburn Hills, Michigan 48326 (Tel: (248) 754-5360; Fax: (248)
754-5360), Attention: Treasurer with a copy to 3800 Hamlin Road, Auburn Hills,
Michigan 48326 (Tel: (248) 754-5360; Fax: (248) 754-5360), Attention: General
Counsel; or, as to each party, at such other address as shall be designated by
such party in a written notice to each other party.

		
	 	     (b) Any notice required or permitted to be given to a
Certificateholder shall be given by first-class mail, postage prepaid, at
the address of such Certificateholder as shall be designated by such
party in a written notice to each other party. Any notice so mailed
within the time prescribed in this Agreement shall be conclusively
presumed to have been duly given, whether or not the Certificateholder
receives such notice.

19

 

     SECTION 11.5. 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 11.6. 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 11.7. Successors and Assigns. All covenants and agreements
contained herein shall be binding upon, and inure to the benefit of, the
Seller, the Owner Trustee and its successors and the Certificateholder and its
successors and permitted assigns, all as herein provided. Any request, notice,
direction, consent, waiver or other instrument or action by the
Certificateholder shall bind the successors and assigns of the
Certificateholder.

     SECTION 11.8. No Petition.

		
	 	     (a) Each of the Owner Trustee (in its individual capacity and as the
Owner Trustee), by entering into this Agreement, the Seller, the
Certificateholder, by accepting the Certificate, and the Indenture
Trustee and each Noteholder or Note Owner by accepting the benefits of
this Agreement, hereby covenants and agrees that prior to the date which
is one year and one day after payment in full of all obligations of each
Bankruptcy Remote Party in respect of all securities issued by the
Bankruptcy Remote Parties (i) such party shall not authorize any
Bankruptcy Remote Party to commence a voluntary winding-up or other
voluntary case or other proceeding seeking liquidation, reorganization or
other relief with respect to such Bankruptcy Remote Party or its debts
under any bankruptcy, insolvency or other similar law now or hereafter in
effect in any jurisdiction or seeking the appointment of an
administrator, a trustee, receiver, liquidator, custodian or other
similar official with respect to such Bankruptcy Remote Party or any
substantial part of its property or to consent to any such relief or to
the appointment of or taking possession by any such official in an
involuntary case or other proceeding commenced against such Bankruptcy
Remote Party, or to make a general assignment for the benefit of, its
creditors generally, any party hereto or any other creditor of such
Bankruptcy Remote Party, and (ii) such party shall not commence, join or
institute against, with any other Person, any proceeding against such
Bankruptcy Remote Party under any bankruptcy, reorganization,
arrangement, liquidation or insolvency law or statute now or hereafter in
effect in any jurisdiction.
	 
	 	     (b) The Seller’s obligations under this Agreement are obligations
solely of the Seller and will not constitute a claim against the Seller
to the extent that the Seller does not have funds sufficient to make
payment of such obligations. In furtherance of and not in derogation of
the foregoing, each of the Owner Trustee (in its individual capacity and
as the Owner Trustee), by entering into or accepting this agreement, the
Certificateholder, by accepting the Certificate, and the Indenture
Trustee and each Noteholder or Note Owner, by accepting the benefits of
this Agreement, hereby acknowledges and agrees that such Person has no
right, title or interest in or to the Other Assets of the Seller. To

20

 

		
	 	the extent that, notwithstanding the agreements and provisions
contained in the preceding sentence, each of the Owner Trustee, the
Indenture Trustee, each Noteholder or Note Owner and the
Certificateholder either (i) asserts an interest or claim to, or benefit
from, Other Assets, or (ii) is deemed to have any such interest, claim
to, or benefit in or from Other Assets, whether by operation of law,
legal process, pursuant to applicable provisions of insolvency laws or
otherwise (including by virtue of Section 1111(b) of the Bankruptcy Code
or any successor provision having similar effect under the Bankruptcy
Code), then such Person further acknowledges and agrees that any such
interest, claim or benefit in or from Other Assets is and will be
expressly subordinated to the indefeasible payment in full, which, under
the terms of the relevant documents relating to the securitization or
conveyance of such Other Assets, are entitled to be paid from, entitled
to the benefits of, or otherwise secured by such Other Assets (whether or
not any such entitlement or security interest is legally perfected or
otherwise entitled to a priority of distributions or application under
applicable law, including insolvency laws, and whether or not asserted
against the Seller), including the payment of post-petition interest on
such other obligations and liabilities. This subordination agreement
will be deemed a subordination agreement within the meaning of Section
510(a) of the Bankruptcy Code. Each of the Owner Trustee (in its
individual capacity and as the Owner Trustee), by entering into or
accepting this agreement, the Certificateholder, by accepting the
Certificate, and the Indenture Trustee and each Noteholder or Note Owner,
by accepting the benefits of this Agreement, hereby further acknowledges
and agrees that no adequate remedy at law exists for a breach of this
Section and the terms of this Section may be enforced by an action for
specific performance. The provisions of this Section will be for the
third party benefit of those entitled to rely thereon and will survive
the termination of this Agreement.

     SECTION 11.9. 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 11.10. GOVERNING LAW. THIS AGREEMENT SHALL BE 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.

[Remainder of Page Intentionally Left Blank]

21

 

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

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK (DELAWARE)
	 	 	 	 	 
	 	 	
By:
	 	/s/ Patrick Burns
	 	 	 	 	

	 	 	
Name:
	 	Patrick Burns
	 	 	
Title:
	 	SVP

	 	 	 
	S-1	 	
Trust Agreement

 

 

	 	 	 	 	 
	 	 	VOLKSWAGEN PUBLIC AUTO LOAN
	 	 	SECURITIZATION, LLC
	 	 	 	 	 
	 	 	
By:
	 	/s/ Peter Schupp
	 	 	 	 	

	 	 	
Name:
	 	Peter Schupp
	 	 	
Title:
	 	President
	 	 	 	 	 
	 	 	
By:
	 	/s/ LeSha A. Thorpe
	 	 	 	 	

	 	 	
Name:
	 	LeSha A. Thorpe
	 	 	
Title:
	 	Assistant Treasurer

	 	 	 
	S-2	 	
Trust Agreement

 

 

EXHIBIT A

FORM OF CERTIFICATE

	NUMBER
R-1	100% BENEFICIAL INTEREST

VOLKSWAGEN AUTO LOAN ENHANCED TRUST 2003-2

CERTIFICATE

     Evidencing the 100% beneficial interest in all of the assets of the Issuer
(as defined below), which consist primarily of motor vehicle receivables,
including motor vehicle retail installment sales contracts and/or installment
loans that are secured by new and used automobiles and light-duty trucks.

     (This Certificate does not represent an interest in or obligation of
Volkswagen Public Auto Loan Securitization, LLC, VW Credit, Inc. or any of
their respective Affiliates, except to the extent described below.)

     THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OR ANY
OTHER APPLICABLE SECURITIES OR “BLUE SKY” LAWS OF ANY STATE OR OTHER
JURISDICTION, AND MAY NOT BE RESOLD, ASSIGNED, PLEDGED OR OTHERWISE TRANSFERRED
EXCEPT IN COMPLIANCE WITH THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
OR ANY OTHER APPLICABLE SECURITIES OR “BLUE SKY” LAWS, PURSUANT TO AN EXEMPTION
THEREFROM OR IN A TRANSACTION NOT SUBJECT THERETO.

     NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE ACQUIRED OR HELD
(IN THE INITIAL ACQUISITION OR THROUGH A TRANSFER) BY OR FOR THE ACCOUNT OF OR
WITH THE ASSETS OF (A) AN EMPLOYEE BENEFIT PLAN (AS DEFINED IN SECTION 3(3) OF
THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”)) THAT
IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, (B) A PLAN DESCRIBED IN
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED OR (C) ANY ENTITY
WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF A PLAN’S INVESTMENT IN
THE ENTITY.

     THIS CERTIFIES THAT [          ] is the registered owner of a 100%
nonassessable, fully-paid, beneficial interest in the Trust Estate of VOLKSWAGEN AUTO LOAN ENHANCED TRUST 2003-2, a Delaware statutory trust (the
“Issuer”) formed by Volkswagen Public Auto Loan Securitization, LLC, a Delaware
limited liability company, as depositor (the “Seller”).

     The Issuer was created pursuant to a Trust Agreement dated as of September
24, 2003 (as amended and restated as of October 29, 2003, the “Trust
Agreement”), between the Seller and The Bank of New York (Delaware), as owner
trustee (the “Owner Trustee”), a summary of

A-1

 

certain of the pertinent provisions of which is set forth below. To the
extent not otherwise defined herein, the capitalized terms used herein have the
meanings assigned to them in the Sale and Servicing Agreement, dated as of
October 29, 2003, among the Seller, the Issuer, JPMorgan Chase Bank, as
indenture trustee, and VW Credit, Inc., as servicer, as the same may be amended
or supplemented from time to time.

     This Certificate is issued under and is subject to the terms, provisions
and conditions of the Trust Agreement, to which Trust Agreement the holder of
this Certificate by virtue of the acceptance hereof assents and by which such
holder is bound. The provisions and conditions of the Trust Agreement are
hereby incorporated by reference as though set forth in their entirety herein.

     The holder of this Certificate acknowledges and agrees that its rights to
receive distributions in respect of this Certificate are subordinated to the
rights of the Noteholders as described in the Indenture, the Sale and Servicing
Agreement and the Trust Agreement, as applicable.

     THIS CERTIFICATE SHALL BE 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.

     By accepting this Certificate, the Certificateholder hereby covenants and
agrees that prior to the date which is one year and one day after payment in
full of all obligations of each Bankruptcy Remote Party in respect of all
securities issued by the Bankruptcy Remote Parties (i) such Person shall not
authorize such Bankruptcy Remote Party to commence a voluntary winding-up or
other voluntary case or other proceeding seeking liquidation, reorganization or
other relief with respect to such Bankruptcy Remote Party or its debts under
any bankruptcy, insolvency or other similar law now or hereafter in effect in
any jurisdiction or seeking the appointment of an administrator, a trustee,
receiver, liquidator, custodian or other similar official with respect to such
Bankruptcy Remote Party or any substantial part of its property or to consent
to any such relief or to the appointment of or taking possession by any such
official in an involuntary case or other proceeding commenced against such
Bankruptcy Remote Party, or to make a general assignment for the benefit of any
party hereto or any other creditor of such Bankruptcy Remote Party, and (ii)
such Person shall not commence or join with any other Person in commencing any
proceeding against such Bankruptcy Remote Party under any bankruptcy,
reorganization, liquidation or insolvency law or statute now or hereafter in
effect in any jurisdiction.

     This Certificate may not be acquired by or for the account of or with the
assets of (a) an employee benefit plan (as defined in Section 3(3) of ERISA)
that is subject to the provisions of Title I of ERISA, (b) a plan described in
Section 4975 of the Code or (c) any entity whose underlying assets include plan
assets by reason of a plan’s investment in the entity (each, a “Benefit Plan”).
By accepting and holding this Certificate, the holder hereof shall be deemed
to have represented and warranted that it is not a Benefit Plan and is not
purchasing on behalf of a Benefit Plan.

A-2

 

     It is the intention of the parties to the Trust Agreement that, solely for
income and franchise tax purposes, the Issuer will be disregarded as an entity
separate from the Seller, the Seller will be disregarded as an entity separate
from VCI and the Notes will be characterized as debt. By accepting this
Certificate, the Certificateholder agrees to take no action inconsistent with
the foregoing intended tax treatment.

     By accepting this Certificate, the Certificateholder acknowledges that
this Certificate represents a beneficial interest in the Issuer only and does
not represent interests in or obligations of the Seller, the Servicer, the
Administrator, the Owner Trustee, the Indenture Trustee or any of their
respective Affiliates and no recourse may be had against such parties or their
assets, except as expressly set forth or contemplated in this Certificate, the
Trust Agreement or any other Transaction Document.

A-3

 

     IN WITNESS WHEREOF, the Issuer has caused this Certificate to be duly
executed.

	 	 	 
	 	 	
VOLKSWAGEN AUTO LOAN ENHANCED TRUST 2003-2
	 	 	 
	 	 	
By: The Bank of New York (Delaware), not
	 	 	
in its individual capacity, but solely as

Owner Trustee

	 	 	 
	Dated:
	 	
By:

A-4

 

OWNER TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is the Certificate referred to in the within-mentioned Trust
Agreement.

	 	 	 
	 	 	
The Bank of New York (Delaware), not in its
individual capacity but solely as Owner
Trustee
	 	 	 
	 	 	
By: 

	 	 	
      Authenticating Agent
	 	 	 
	 	 	
By: 

	 	 	
      Authorized Signatory

A-5

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