Document:

Exhibit 4.1

 

AMENDED AND RESTATED

INDENTURE

 

 

Between

 

 

TEXTRON FINANCIAL FLOORPLAN MASTER
NOTE TRUST,

as Issuer

 

 

and

 

 

THE BANK OF NEW YORK,

as Indenture Trustee

 

 

Dated as of May 26, 2005

 

 

CROSS-REFERENCE TABLE

TRUST INDENTURE ACT

 

	
  SECTION

  	
   

  	
   

  	
  INDENTURE

  SECTION

  	
   

  
	
  310

  	
  (a) (1)

  	
   

  	
  6.11

  	
   

  
	
   

  	
  (a) (2)

  	
   

  	
  6.11

  	
   

  
	
   

  	
  (a) (3)

  	
   

  	
  6.10

  	
   

  
	
   

  	
  (a) (4)

  	
   

  	
  5.3(g), 5.3(h)

  	
   

  
	
   

  	
  (b)

  	
   

  	
  6.11

  	
   

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  	
   

  
	
  311

  	
  (a)

  	
   

  	
  6.13

  	
   

  
	
   

  	
  (b)

  	
   

  	
  6.13

  	
   

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  	
   

  
	
  312

  	
  (a)

  	
   

  	
  7.1, 7.2

  	
   

  
	
   

  	
  (b)

  	
   

  	
  7.2

  	
   

  
	
   

  	
  (c)

  	
   

  	
  7.2

  	
   

  
	
  313

  	
  (a)

  	
   

  	
  7.4(a), 7.4(b)

  	
   

  
	
   

  	
  (b) (1)

  	
   

  	
  7.4(a)

  	
   

  
	
   

  	
  (b) (2)

  	
   

  	
  7.4(a)

  	
   

  
	
   

  	
  (c)

  	
   

  	
  7.4(a)

  	
   

  
	
   

  	
  (d)

  	
   

  	
  7.4(a)

  	
   

  
	
  314

  	
  (a)

  	
   

  	
  7.3(a), 3.9

  	
   

  
	
   

  	
  (b)

  	
   

  	
  3.6

  	
   

  
	
   

  	
  (c) (1)

  	
   

  	
  2.1, 2.9, 4.1, 11.1(a)

  	
   

  
	
   

  	
  (c) (2)

  	
   

  	
  2.1, 2.9, 4.1, 11.1(a)

  	
   

  
	
   

  	
  (c) (3)

  	
   

  	
  2.9, 4.1, 11.1(a)

  	
   

  
	
   

  	
  (d)

  	
   

  	
  2.9, 11.1(b)

  	
   

  
	
   

  	
  (e)

  	
   

  	
  11.1(a)

  	
   

  
	
   

  	
  (f)

  	
   

  	
  11.1(a)

  	
   

  
	
  315

  	
  (a)

  	
   

  	
  6.1(a)

  	
   

  
	
   

  	
  (b)

  	
   

  	
  6.5

  	
   

  
	
   

  	
  (c)

  	
   

  	
  6.1(a)

  	
   

  
	
   

  	
  (d)

  	
   

  	
  6.2, 6.1(c)

  	
   

  
	
   

  	
  (e)

  	
   

  	
  5.13

  	
   

  
	
  316

  	
  (a) last sentence

  	
   

  	
  11.3(c)

  	
   

  
	
   

  	
  (a) (1) (A)

  	
   

  	
  5.11

  	
   

  
	
   

  	
  (a) (1) (B)

  	
   

  	
  5.12

  	
   

  
	
   

  	
  (a) (2)

  	
   

  	
  Omitted

  	
   

  
	
  316

  	
  (b), (c)

  	
   

  	
  5.7

  	
   

  
	
  317

  	
  (a) (1)

  	
   

  	
  5.3(b)

  	
   

  
	
   

  	
  (a) (2)

  	
   

  	
  5.3(d)

  	
   

  
	
   

  	
  (b)

  	
   

  	
  3.3

  	
   

  
	
  318

  	
  (a)

  	
   

  	
  11.7

  	
   

  
						

 

N.A. means Not Applicable.

 

This cross reference
table shall not, for any purpose, be deemed to be part of this Indenture.

 

 

TABLE
OF CONTENTS

 

 

	
  ARTICLE I
  DEFINITIONS AND INCORPORATION BY REFERENCE

  	
   

  
	
   

  	
   

  
	
   

  	
  SECTION 1.1 Definitions and
  Rules of Construction

  	
   

  
	
   

  	
  SECTION 1.2 Incorporation by
  Reference of Trust Indenture Act

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II
  THE INVESTOR INTERESTS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.1 Issuance of Investor
  Interests; Execution, Authentication and Delivery

  	
   

  
	
   

  	
  SECTION 2.2 Form of Investor
  Interests and Indenture Trustee’s Certificate of Authentication

  	
   

  
	
   

  	
  SECTION 2.3 Temporary Interests

  	
   

  
	
   

  	
  SECTION 2.4 Registration;
  Registration of Transfer and Exchange of Investor Interests

  	
   

  
	
   

  	
  SECTION 2.5 Mutilated, Destroyed,
  Lost or Stolen Investor Interests

  	
   

  
	
   

  	
  SECTION 2.6 Persons Deemed
  Interestholders

  	
   

  
	
   

  	
  SECTION 2.7 Payment of Principal
  and Interest

  	
   

  
	
   

  	
  SECTION 2.8 Cancellation of
  Investor Interests

  	
   

  
	
   

  	
  SECTION 2.9 Release of Collateral

  	
   

  
	
   

  	
  SECTION 2.10 Book-Entry
  Interests

  	
   

  
	
   

  	
  SECTION 2.11 Notices to Clearing
  Agency

  	
   

  
	
   

  	
  SECTION 2.12 Definitive
  Interests

  	
   

  
	
   

  	
  SECTION 2.13 Seller as
  Interestholder

  	
   

  
	
   

  	
  SECTION 2.14 Tax Treatment

  	
   

  
	
   

  	
  SECTION 2.15 Special Terms
  Applicable to Subsequent Transfers of Certain Interests

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.1 Payment of Principal
  and Interest

  	
   

  
	
   

  	
  SECTION 3.2 Maintenance of Agency
  Office

  	
   

  
	
   

  	
  SECTION 3.3 Money for Payments To
  Be Held in Trust

  	
   

  
	
   

  	
  SECTION 3.4 Existence

  	
   

  
	
   

  	
  SECTION 3.5 Protection of Trust
  Estate; Acknowledgment of Pledge

  	
   

  
	
   

  	
  SECTION 3.6 Opinions as to Trust
  Estate

  	
   

  
	
   

  	
  SECTION 3.7 Performance of
  Obligations; Servicing of Receivables

  	
   

  
	
   

  	
  SECTION 3.8 Financial Reports by
  the Issuer

  	
   

  
	
   

  	
  SECTION 3.9 Books and Records

  	
   

  
	
   

  	
  SECTION 3.10 Compliance with
  Laws

  	
   

  
	
   

  	
  SECTION 3.11 Rule 144A
  Information

  	
   

  
	
   

  	
  SECTION 3.12 Annual Tax
  Information

  	
   

  
	
   

  	
  SECTION 3.13 Annual Statement as
  to Compliance

  	
   

  
	
   

  	
  SECTION 3.14 Servicer’s
  Obligations

  	
   

  
	
   

  	
  SECTION 3.15 Notice of Events of
  Default

  	
   

  
	
   

  	
  SECTION 3.16 Further Instruments
  and Acts

  	
   

  
	
   

  	
  SECTION 3.17 Indenture Trustee’s
  Assignment of Interests in Certain Receivables

  	
   

  
	
   

  	
  SECTION 3.18 Consolidation or Merger
  of Issuer; Disposition of Trust Assets; Permitted Assets

  	
   

  

 

i

 

	
   

  	
  SECTION 3.19 Successor or
  Transferee

  	
   

  
	
   

  	
  SECTION 3.20 No Other Business

  	
   

  
	
   

  	
  SECTION 3.21 No Borrowing

  	
   

  
	
   

  	
  SECTION 3.22 Guarantees, Loans,
  Advances and Other Liabilities

  	
   

  
	
   

  	
  SECTION 3.23 Capital
  Expenditures

  	
   

  
	
   

  	
  SECTION 3.24 Restricted Payments

  	
   

  
	
   

  	
  SECTION 3.25 Other Negative
  Covenants

  	
   

  
	
   

  	
  SECTION 3.26 Separate Corporate
  Existence of the Issuer

  	
   

  
	
   

  	
  SECTION 3.27 Representations and
  Warranties by the Issuer to the Indenture Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV
  SATISFACTION AND DISCHARGE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 4.1 Satisfaction and
  Discharge of Indenture

  	
   

  
	
   

  	
  SECTION 4.2 Application of Trust
  Money

  	
   

  
	
   

  	
  SECTION 4.3 Repayment of Monies
  Held by Paying Agent

  	
   

  
	
   

  	
  SECTION 4.4 Duration of Position
  of Indenture Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V
  DEFAULT AND REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 5.1 Events of Default

  	
   

  
	
   

  	
  SECTION 5.2 Acceleration of
  Maturity; Rescission and Annulment

  	
   

  
	
   

  	
  SECTION 5.3 Collection of
  Indebtedness and Suits for Enforcement by Indenture Trustee

  	
   

  
	
   

  	
  SECTION 5.4 Remedies; Priorities

  	
   

  
	
   

  	
  SECTION 5.5 Optional Preservation
  of the Trust Estate

  	
   

  
	
   

  	
  SECTION 5.6 Limitation of Suits

  	
   

  
	
   

  	
  SECTION 5.7 Unconditional Rights
  of Interestholders To Receive Principal and Interest

  	
   

  
	
   

  	
  SECTION 5.8 Restoration of Rights
  and Remedies

  	
   

  
	
   

  	
  SECTION 5.9 Rights and Remedies
  Cumulative

  	
   

  
	
   

  	
  SECTION 5.10 Delay or Omission
  Not a Waiver

  	
   

  
	
   

  	
  SECTION 5.11 Control by
  Interestholders

  	
   

  
	
   

  	
  SECTION 5.12 Waiver of Past Defaults

  	
   

  
	
   

  	
  SECTION 5.13 Undertaking for
  Costs

  	
   

  
	
   

  	
  SECTION 5.14 Waiver of Stay or
  Extension Laws

  	
   

  
	
   

  	
  SECTION 5.15 Action on Investor
  Interests

  	
   

  
	
   

  	
  SECTION 5.16 Performance and
  Enforcement of Certain Obligations

  	
   

  
	
   

  	
  SECTION 5.17 Early Amortization
  Events

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI
  THE INDENTURE TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 6.1 Duties of Indenture
  Trustee

  	
   

  
	
   

  	
  SECTION 6.2 Rights of Indenture
  Trustee

  	
   

  
	
   

  	
  SECTION 6.3 Individual Rights of
  Indenture Trustee

  	
   

  
	
   

  	
  SECTION 6.4 Indenture Trustee’s
  Disclaimer

  	
   

  
	
   

  	
  SECTION 6.5 Notice of Defaults

  	
   

  
	
   

  	
  SECTION 6.6 Reports by Indenture
  Trustee to Holders

  	
   

  
	
   

  	
  SECTION 6.7 Compensation;
  Indemnity

  	
   

  
	
   

  	
  SECTION 6.8 Replacement of
  Indenture Trustee

  	
   

  
	
   

  	
  SECTION 6.9 Successor Indenture
  Trustee by Merger

  	
   

  
	
   

  	
  SECTION 6.10 Appointment of
  Co-Indenture Trustee or Separate Indenture Trustee

  	
   

  
	
   

  	
  SECTION 6.11 Indenture Trustee
  Required; Eligibility

  	
   

  

 

ii

 

	
   

  	
  SECTION 6.12 Waiver of Setoffs

  	
   

  
	
   

  	
  SECTION 6.13 Preferential
  Collection of Claims Against Issuer

  	
   

  
	
   

  	
  SECTION 6.14 Representations and
  Covenants of the Indenture Trustee

  	
   

  
	
   

  	
  SECTION 6.15 Custody of
  Collateral

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII
  INTERESTHOLDERS’ LISTS AND REPORTS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 7.1 Issuer To Furnish
  Indenture Trustee Names and Addresses of Interestholders

  	
   

  
	
   

  	
  SECTION 7.2 Preservation of
  Information, Communications to Interestholders

  	
   

  
	
   

  	
  SECTION 7.3 Reports by Issuer

  	
   

  
	
   

  	
  SECTION 7.4 Reports by Indenture
  Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII
  ACCOUNTS, DISBURSEMENTS AND RELEASES

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 8.1 Collection of Money

  	
   

  
	
   

  	
  SECTION 8.2 Trust Accounts;
  Allocations; Payments

  	
   

  
	
   

  	
  SECTION 8.3 General Provisions
  Regarding Trust Accounts

  	
   

  
	
   

  	
  SECTION 8.4 Release of Trust
  Estate

  	
   

  
	
   

  	
  SECTION 8.5 Opinion of Counsel

  	
   

  
	
   

  	
  SECTION 8.6 Rights of
  Interestholders

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX
  SUPPLEMENTAL INDENTURES

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 9.1 Supplemental
  Indentures Without Consent of Interestholders

  	
   

  
	
   

  	
  SECTION 9.2 Supplemental
  Indentures With Consent of Interestholders

  	
   

  
	
   

  	
  SECTION 9.3 Execution of
  Supplemental Indentures

  	
   

  
	
   

  	
  SECTION 9.4 Effect of
  Supplemental Indenture

  	
   

  
	
   

  	
  SECTION 9.5 Conformity with Trust
  Indenture Act

  	
   

  
	
   

  	
  SECTION 9.6 Reference in Investor
  Interests to Supplemental Indentures

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE X
  REDEMPTION OF INVESTOR INTERESTS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 10.1 Redemption

  	
   

  
	
   

  	
  SECTION 10.2 Form of
  Redemption Notice

  	
   

  
	
   

  	
  SECTION 10.3 Investor Interests
  Payable on Redemption Date

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 11.1 Compliance
  Certificates and Opinions, etc.

  	
   

  
	
   

  	
  SECTION 11.2 Form of
  Documents Delivered to Indenture Trustee

  	
   

  
	
   

  	
  SECTION 11.3 Acts of
  Interestholders

  	
   

  
	
   

  	
  SECTION 11.4 Notices, etc., to
  Indenture Trustee, Issuer and Rating Agencies

  	
   

  
	
   

  	
  SECTION 11.5 Notices to
  Interestholders; Waiver

  	
   

  
	
   

  	
  SECTION 11.6 Alternate Payment
  and Notice Provisions

  	
   

  
	
   

  	
  SECTION 11.7 Conflict with Trust
  Indenture Act

  	
   

  
	
   

  	
  SECTION 11.8 Effect of Headings
  and Table of Contents

  	
   

  
	
   

  	
  SECTION 11.9 Successors and
  Assigns

  	
   

  
	
   

  	
  SECTION 11.10 Separability

  	
   

  
	
   

  	
  SECTION 11.11 Benefits of
  Indenture

  	
   

  
	
   

  	
  SECTION 11.12 Legal Holidays

  	
   

  

 

iii

 

	
   

  	
  SECTION 11.13 GOVERNING LAW

  	
   

  
	
   

  	
  SECTION 11.14 Counterparts

  	
   

  
	
   

  	
  SECTION 11.15 Recording of
  Indenture

  	
   

  
	
   

  	
  SECTION 11.16 No Recourse

  	
   

  
	
   

  	
  SECTION 11.17 No Petition

  	
   

  
	
   

  	
  SECTION 11.18 Inspection

  	
   

  
	
   

  	
  SECTION 11.19 No Substantive
  Review of Compliance Documents

  	
   

  
	
   

  	
  SECTION 11.20 Amendment of
  Basic Documents

  	
   

  
	
   

  	
  SECTION 11.21 Subordination

  	
   

  
	
   

  	
  SECTION 11.22 Intercreditor
  Arrangement

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A                                               Form of
  Investment Letter

  	
   

  

 

iv

 

AMENDED AND
RESTATED INDENTURE, dated as of May 26, 2005, between TEXTRON FINANCIAL
FLOORPLAN MASTER NOTE TRUST, a Delaware statutory trust (the “Issuer”),
and THE BANK OF NEW YORK, a New York banking corporation, as indenture trustee
(as indenture trustee and not in its individual capacity the “Indenture
Trustee”).

 

RECITALS

 

IN WITNESS
WHEREOF, each party agrees to as follows for the benefit of the other party and
for the equal and ratable benefit of the Holders of the Investor Interests and
(only to the extent expressly provided herein) the Residual Interestholder:

 

GRANTING CLAUSE

 

The Issuer hereby
mortgages, pledges, bargains, sells, warrants, alienates, remises, releases,
conveys, assigns, transfers, creates, and grants to the Indenture Trustee, for
the benefit of the Holders of the Investor Interests, and (only to the extent
expressly provided herein) the Residual Interestholder, on the date hereof and
on each Addition Date, a Lien upon and a security interest in and a right of
set-off against all accounts, general intangibles, chattel paper, instruments,
documents, money, deposit accounts, certificates of deposit, goods, letters of
credit, advices of credit and investment property, consisting of, arising from
or relating to: (a) all Receivables, all Collateral Security with respect
thereto, all monies due or to become due thereon (including all interest
thereon accruing after the Initial Cut-Off Date, whether paid or payable) and
all amounts received with respect thereto (including Collections) and all
proceeds thereof (including “proceeds” as defined in Section 9-102(64)
of the UCC) and Recoveries, existing in Accounts on the Initial Cut-Off Date,
generated in the Accounts after the Initial Cut-Off Date and Receivables
existing in or generated in any Accounts added to the Issuer on any Addition
Date; (b) all of the Issuer’s rights, remedies, powers and privileges with
respect to such Receivables under the Receivables Transfer Agreements, the
Receivables Purchase Agreement and the Sale and Servicing Agreement; (c) all
funds on deposit in the Trust Accounts; and (d) any proceeds of the
foregoing (collectively, the “Collateral”).

 

The foregoing
Grant has been made and will continue to be made in trust to secure the payment
of principal of and interest on, and any other amounts owing in respect of, the
Investor Interests, equally and ratably without prejudice, priority or
distinction (except as otherwise provided in any Series Supplement or
supplement hereto), to secure (only to the extent expressly provided herein)
distributions with respect to the Residual Interest, and to secure compliance
with the provisions of this Indenture, all as provided in this Indenture.  This Indenture constitutes a security
agreement under the UCC.

 

The foregoing
Grant includes and will continue to include all rights, powers and options (but
none of the obligations, if any) of the Issuer under any agreement or
instrument included in the Collateral, including the immediate and continuing
right to claim for, collect, receive and give receipt for principal and
interest payments in respect of the Receivables included in the Collateral and
all other monies payable under the Collateral, to give and receive notices and
other communications, to make waivers or other agreements, to exercise all
rights and options, to bring Proceedings in the name of the Issuer or otherwise
and generally to do and receive anything that the Issuer is or may be entitled
to do or receive under or with respect to the Collateral.

 

The Indenture
Trustee, as trustee on behalf of the Interestholders and (only to the extent
expressly provided herein) the Residual Interestholder, acknowledges such Grant
and accepts the trusts under this Indenture in accordance with the provisions
of this Indenture.

 

 

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

 

SECTION 1.1  Definitions and Rules of Construction.  Certain capitalized terms used in this
Indenture shall have the respective meanings assigned them in the Amended and
Restated Sale and Servicing Agreement, dated as of the date hereof (the “Sale
and Servicing Agreement”), among Textron Financial Corporation (“TFC”),
the Seller, the Issuer and the Indenture Trustee.  All references herein to “this Indenture” are
to this Indenture as it may be amended, supplemented or modified from time to
time, and all references herein to Articles, Sections, subsections and exhibits
are to Articles, Sections, subsections and exhibits of this Indenture unless
otherwise specified.  All terms defined
in this Indenture shall have the defined meanings when used in any certificate,
notice, Investor Interest or other document made or delivered pursuant hereto
unless otherwise defined therein.  The rules of
construction set forth in Section 1.2 of the Sale and Servicing
Agreement shall be applicable to this Indenture.

 

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

 

“Commission” means
the Securities and Exchange Commission.

 

“Indenture
securities” means the Investor Interests.

 

“Indenture trustee”
means the Indenture Trustee.

 

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

 

All other Trust
Indenture Act terms used in this Indenture that are defined by the Trust
Indenture Act, defined by Trust Indenture Act reference to another statute or
defined by a Commission rule have the respective meanings assigned to them
by such definitions.

 

ARTICLE II

THE INVESTOR INTERESTS

 

SECTION 2.1  Issuance of Investor Interests; Execution,
Authentication and Delivery.

 

(a)                                  Investor
Interests may be issued by the Issuer upon execution of this Indenture and from
time to time thereafter, in each case, in accordance with the terms and
conditions authorized by or pursuant to a Series Supplement.  The Investor Interests may be issued in one
or more Series.  The aggregate principal
amount of the Investor Interests of all Series that may be authenticated
and delivered and outstanding under this Indenture is not limited.

 

(b)                                 The
Investor Interests shall be executed on behalf of the Issuer by any of its
Authorized Officers.  The signature of
any such Authorized Officer on the Investor Interests may be manual or
facsimile.  Investor Interests 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 office prior to the
authentication and delivery of such Investor Interests or did not hold such
office at the date of such Investor Interests.

 

2

 

(c)                                  Prior
to or concurrently with the delivery of any Investor Interest to the Indenture
Trustee for authentication, the parties hereto shall execute and deliver a Series Supplement
which will specify the principal terms of such new Series. The terms of such Series Supplement
may modify or amend the terms of this Indenture solely as applied to such new Series of
Investor Interests.

 

(i)                                     The
Series Supplement shall set forth, in addition to all other requirements
of such certificate:

 

(A)                              the name or designation of the particular
Series (which shall distinguish such Series from all other Series);

 

(B)                                the initial aggregate principal amount of
the Series (or method for calculating its initial principal amount) which
may be authenticated and delivered under this Indenture (except for Investor
Interests authenticated and delivered upon registration and transfer of, or in
exchange for, or in lieu of, other Investor Interests of such Series pursuant
to this Indenture);

 

(C)                                the method for allocating principal and
interest to the Interestholders;

 

(D)                               the rate or rates (or the method for
determining its rate) at which the Investor Interests of such Series shall
bear interest, if any, or the initial interest rate and the method for
determining subsequent interest rates;

 

(E)                                 the terms on which the Investor Interests
may be exchanged for Investor Interests of another Series, be subject to
repurchase, optional redemption or mandatory redemption by the Seller or be
remarketed by any remarketing agent;

 

(F)                                 the percentage used to calculate Monthly
Servicing Fees;

 

(G)                                the level of subordination provided by
the Residual Interest;

 

(H)                               the Final Payment Date for that Series;
and

 

(I)                                    any other terms permitted by this
Indenture.

 

(ii)                                  The
obligation of the Indenture Trustee to authenticate the Investor  Interests of such new Series and to
execute and deliver the related Series Supplement is subject to the
following:

 

(A)                              on or before the tenth Business Day
immediately preceding the Series Issuance Date, the Seller shall have
given the Indenture Trustee, the Issuer, the Servicer, each Rating Agency with
respect to the new Series and each outstanding Series and any Agent
written notice of such issuance and the Series Issuance Date;

 

(B)                                the Issuer shall have delivered to the
Indenture Trustee a Series Supplement, in form reasonably satisfactory to
the Indenture Trustee, executed by the Issuer and the Servicer;

 

(C)                                the Issuer shall have delivered to the
Indenture Trustee any related agreements, executed by each party hereto other
than the Indenture Trustee;

 

3

 

(D)                               there shall have been delivered to the
Indenture Trustee an Opinion of Counsel to the effect that, for federal income
tax purposes, (i) the issuance of the Investor Interests will not
adversely affect the characterization of the Investor Interests of any
outstanding Series or Class of Investor Interests, as debt, nor will
the issuance cause a taxable event for any Interestholder and (ii) the
issuance of such Investor Interests will not cause the Issuer to be characterized
as an association or publicly traded partnership taxable as a corporation;

 

(E)                                 the Issuer and the Servicer shall each
have delivered to the Indenture Trustee an Officer’s Certificate to the effect
that on the Series Issuance Date after giving effect to the issuance of
such new Series, all conditions precedent provided in this Indenture and the
related Series Supplement with respect to the authentication and delivery
of the new Series of Investor Interests have been complied with;

 

(F)                                 the Rating Agency Condition shall be
satisfied with respect to the issuance of such Series of Investor
Interests.

 

(d)                                 Prior
to or concurrently with each new issuance, TFC and the Issuer shall have
represented and warranted that the issuance shall not, in their reasonable belief,
cause an Early Amortization Event to occur for any outstanding Series or Class of
Investor Interests.

 

(e)                                  Upon
execution and delivery of the items set forth in Section 2.1(c)(ii) above
to the Indenture Trustee, the Indenture Trustee shall thereupon authenticate
and deliver the related Investor Interests as directed in an Issuer Order.

 

(f)                                    The
Indenture Trustee is hereby authorized and directed to execute and deliver any Series Supplement
provided to it by the Issuer pursuant to Section 2.1(c)(ii).  The Indenture Trustee shall not be under any
obligation to execute and deliver any such Series Supplement which it
deems, in its reasonable judgment, to adversely affect the Indenture Trustee’s
own rights, duties, liabilities or indemnities. 
The Indenture Trustee shall not otherwise be responsible for, and its
execution and delivery of any Series Supplement shall not be construed to
imply or constitute any affirmative determination on the part of the Indenture
Trustee as to the sufficiency or acceptability of the terms of such Series Supplement.

 

SECTION 2.2  Form of Investor Interests and
Indenture Trustee’s Certificate of Authentication.

 

(a)                                  The
Investor Interests shall be in the forms provided from time to time by or
pursuant to a Series Supplement in accordance with the terms of this
Indenture and may have such letters, numbers or other marks of identification
or designation and such legends or endorsements printed, lithographed or
engraved thereon as the Issuer may deem appropriate and as are not inconsistent
with the provisions of this Indenture, or as may be required to comply with any
law or with any rule or regulation made pursuant thereto or with any rule or
regulation of any stock exchange on which the Investor Interests may be listed
or to conform to usage.  Any portion of
the text of any Investor Interest may be set forth on the reverse thereof, with
an appropriate reference thereto on the face of the Investor Interest.  The Definitive Interests 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 Authorized Officer executing such Investor Interests, as evidenced by such
officer’s execution of such Investor Interests.

 

4

 

(b)                                 The
Indenture Trustee’s certificate of authentication shall be substantially in the
following form:

 

INDENTURE TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

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

 

THE
BANK OF NEW YORK, not in its individual capacity but solely as Indenture
Trustee

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
  Dated:

  	
   

  	
   

  

 

(c)                                  Each
Investor Interest shall be dated the date of its authentication.  Unless otherwise provided in the related Series Supplement,
each Investor Interest shall be issuable as a registered Investor Interest in
the minimum denomination of $1,000,000 and in integral multiples of $1,000.

 

SECTION 2.3  Temporary Interests.

 

(a)                                  Pending
the preparation of Definitive Interests, if any, to be issued in exchange for
Book-Entry Interests, the Issuer may execute, and upon receipt of an Issuer
Order the Indenture Trustee shall authenticate and deliver, such Temporary
Interests which are printed, lithographed, typewritten, mimeographed or
otherwise produced, of the tenor of the Definitive Interests in lieu of which
they are issued and with such variations as are consistent with the terms of
this Indenture as the officers executing such Investor Interests may determine,
as evidenced by their execution of such Investor Interests.

 

(b)                                 If
Temporary Interests are issued, the Issuer shall cause Definitive Interests to
be prepared without unreasonable delay. 
After the preparation of Definitive Interests, the Temporary Interests
shall be exchangeable for Definitive Interests upon surrender of the Temporary
Interests at the Agency Office of the Issuer to be maintained as provided in Section 3.2,
without charge to the Interestholder. 
Upon surrender for cancellation of any one or more Temporary Interests,
the Issuer shall execute and the Indenture Trustee shall authenticate and
deliver in exchange therefor a like principal amount of Definitive Interests of
authorized denominations.  Until so
delivered in exchange, the Temporary Interests shall in all respects be
entitled to the same benefits under this Indenture as Definitive Interests.

 

SECTION 2.4  Registration; Registration of Transfer and
Exchange of Investor Interests.

 

(a)                                  The
Issuer shall cause to be kept the Register, comprising separate registers for
each Series and Class of Investor Interests, in which, subject to
such reasonable regulations as the Issuer may prescribe, the Issuer shall
provide for the registration of the Investor Interests and the registration of
transfers and exchanges of the Investor Interests (the “Register”).  The Indenture Trustee shall initially be the
Registrar for the purpose of registering the Investor Interests and transfers
of the Investor Interests as herein provided. 
Upon any resignation of any Registrar, the Issuer shall promptly appoint
a successor Registrar or, if it elects not to make such an appointment, assume
the duties of the Registrar.

 

5

 

(b)                                 If
a Person other than the Indenture Trustee is appointed by the Issuer as
Registrar, the Issuer shall give the Indenture Trustee prompt written notice of
the appointment of such Registrar and of the location, and any change in the
location, of the Register.  The Indenture
Trustee shall have the right to inspect the Register at all reasonable times
and to obtain copies thereof.  The
Indenture Trustee shall have the right to rely upon a certificate executed on
behalf of the Registrar by an Executive Officer thereof as to the names and
addresses of the Interestholders and the principal amounts and number of such
Investor Interests.

 

(c)                                  Upon
surrender for registration of transfer of any Investor Interest at the
Corporate Trust Office of the Indenture Trustee or the Agency Office of the
Issuer (and following the delivery, in the former case, of such Investor
Interests to the Issuer by the Indenture Trustee), if the requirements of Section 8-401(a) of
the UCC as in effect in the State of New York are met and any appropriate
requirements for transition set forth in the related Series Supplement are
satisfied, the Issuer shall execute, the Indenture Trustee shall authenticate
and the Interestholder shall obtain from the Indenture Trustee, in the name of
the designated transferee or transferees, one or more new Investor Interests of
the same Series in any authorized denominations of a like aggregate
principal amount.

 

(d)                                 At
the option of the Interestholders, Investor Interests may be exchanged for
other Investor Interests of the same Series and Class in any
authorized denominations, of a like aggregate principal amount, upon surrender
of such Investor Interests to be exchanged at the Corporate Trust Office of the
Indenture Trustee or the Agency Office of the Issuer (and following the
delivery, in the former case, of such Investor Interests to the Issuer by the
Indenture Trustee).  Whenever Investor
Interests are so surrendered for exchange, if the requirements of Section 8-401(a) of
the UCC are met, the Issuer shall execute, and the Indenture Trustee shall
authenticate and the Interestholder shall obtain from the Indenture Trustee,
such Investor Interests which the Interestholder making the exchange is
entitled to receive.

 

(e)                                  All
Investor Interests issued upon any registration of transfer or exchange of
other Investor Interests shall be the valid obligations of the Issuer,
evidencing the same debt, and entitled to the same benefits under this
Indenture and the related Series Supplement as the Investor Interests
surrendered upon such registration of transfer or exchange.

 

(f)                                    Every
Investor Interest presented or surrendered for registration of transfer or
exchange shall be duly endorsed by, or be accompanied by a written instrument
of transfer in form satisfactory to the Indenture Trustee and the Registrar,
duly executed by the Holder thereof or such Holder’s attorney duly authorized
in writing, with such signature guaranteed by a commercial bank or trust
company and by such other documents as the Indenture Trustee and Registrar may
reasonably require.

 

(g)                                 No
service charge shall be made to a Holder for any registration of transfer or
exchange of Investor Interests, but the Issuer or Indenture Trustee 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
Investor Interests, other than exchanges pursuant to Sections 2.3 or 9.6
not involving any transfer.

 

(h)                                 The
preceding provisions of this Section 2.4 notwithstanding, the
Issuer shall not be required to transfer or make exchanges, and the Registrar
need not register transfers or exchanges, (i) of Investor Interests that
have been selected for redemption pursuant to Article X, if
applicable; (ii) of Investor Interests that are due for repayment within
15 days of submission to the Corporate Trust Office or the Agency Office;
or (iii) if Section 2.15 has not been complied with in
connection with such transfer.

 

6

 

(i)                                     The
registration of transfer of any Investor Interest shall be subject to the
additional requirements, if any, set forth in the related Series Supplement.

 

(j)                                     All
Investor Interests surrendered for registration of transfer or exchange shall
be cancelled by the Indenture Trustee and Registrar and disposed of by the
Indenture Trustee and Registrar in accordance with its customary
procedures.  The Indenture Trustee and
Registrar shall dispose of any Temporary Interests upon its exchange in full
for Definitive Investor Interests (of the same Series) in accordance with its
customary procedures.

 

(k)                                  Neither
the Indenture Trustee nor the Registrar shall have any responsibility to
monitor or restrict the transfer of beneficial ownership in any Investor
Interest an interest in which is transferable through the facilities of the
Depository.

 

SECTION 2.5  Mutilated, Destroyed, Lost or Stolen
Investor Interests.

 

(a)                                  If
(i) any mutilated Investor Interest is surrendered to the Indenture
Trustee, or the Indenture Trustee receives evidence to its satisfaction of the
destruction, loss or theft of any Investor Interest, 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 Registrar or the Indenture Trustee that such Investor Interest has
been acquired by a bona fide purchaser, the Issuer shall execute and upon the
Issuer’s written request the Indenture Trustee shall authenticate and deliver,
in exchange for or in lieu of any such mutilated, destroyed, lost or stolen
Investor Interest, a replacement Investor Interest of a like Series and Class and
aggregate principal amount; provided, however, that if any such
destroyed, lost or stolen Investor Interest, but not a mutilated Investor
Interest, shall have become or within 15 days shall be due and payable, or
shall have been called for redemption, instead of issuing a replacement
Investor Interest, the Issuer may make payment to the Holder of such destroyed,
lost or stolen Investor Interest when so due or payable or upon the Redemption
Date, if applicable, without surrender thereof.

 

(b)                                 If,
after the delivery of a replacement Investor Interest or payment in respect of
a destroyed, lost or stolen Investor Interest pursuant to subsection (a),
a bona fide purchaser of the original Investor Interest in lieu of which such
replacement Investor Interest was issued presents for payment such original
Investor Interest, the Issuer and the Indenture Trustee shall be entitled to
recover such replacement Investor Interest (or such payment) from (i) any
Person to whom it was delivered, (ii) the Person taking such replacement
Investor Interest from the Person to whom such replacement Investor Interest
was delivered or (iii) any assignee of such Person, except a bona fide
purchaser, and the Issuer and the Indenture Trustee 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.

 

(c)                                  In
connection with the issuance of any replacement Investor Interest under this Section 2.5,
the Issuer or the Indenture Trustee may require the payment by the Holder of
such Investor Interest 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 all fees and expenses of the Indenture Trustee)
connected therewith.

 

(d)                                 Any
duplicate Investor Interest issued pursuant to this Section 2.5 in
replacement for any mutilated, destroyed, lost or stolen Investor Interest
shall constitute an original additional contractual obligation of the Issuer,
whether or not the mutilated, destroyed, lost or stolen Investor Interest shall
be found at any time or be enforced by any Person, and shall be entitled to all
the benefits of this Indenture equally and proportionately with any and all
other Investor Interests duly issued hereunder.

 

7

 

(e)                                  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 Investor
Interests.

 

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

 

(a)                                  Interest
on each Series of Investor Interests shall accrue and be payable as
provided in the applicable Series Supplement.  Unless otherwise provided in the applicable Series Supplement,
any installment of interest payable on any Investor Interest shall be
punctually paid or duly provided for by a deposit by or at the written
direction of the Issuer into the Collection Account, on the applicable Payment
Date and shall be paid to the Person in whose name such Investor Interest (or
one or more Predecessor Interests) is registered on the applicable Record Date,
by check mailed first-class, postage prepaid to such Person’s address as it
appears on the Register on such Record Date or, if any Interestholder that
holds at least $10,000,000 of Outstanding Amount of Investor Interests of any Series so
requests, payment shall be made by wire transfer in immediately available funds
to the account designated by such Interestholder; provided, however,
that, with respect to Book-Entry Interests registered on the applicable Record
Date in the name of the Depository for which Definitive Interests have not been
issued pursuant to Section 2.12, payment shall be made by wire
transfer in immediately available funds to the account designated by such
Holder.

 

(b)                                 The
principal of each Series of Investor Interests shall be payable as provided
in the applicable Series Supplement. 
All principal payments on each Series of Investor Interests shall
be made pro rata to the Interestholders of such Series entitled thereto
unless otherwise provided in the related Series Supplement.  Unless otherwise provided in the applicable Series Supplement,
any installment of principal payable on any Investor Interest shall be
punctually paid or duly provided for by a deposit by or at the direction of the
Issuer into the Collection Account on the applicable Payment Date and shall be
paid to the Person in whose name such Investor Interest (or one or more
Predecessor Interests) is registered on the applicable Record Date, by check
mailed first-class, postage prepaid to such Person’s address as it appears on
the Register on such Record Date or, if any Interestholder that holds at least
$10,000,000 of the Outstanding Amount of Investor Interests of any Series so
requests, payment shall be made by wire transfer in immediately available funds
to the account designated by such Interestholder; provided, however,
that, with respect to Book-Entry Interests registered on the Record Date in the
name of the Depository for which Definitive Interests have not been issued
pursuant to Section 2.12, payment shall be made by wire transfer in
immediately available funds to the account designated by such Holder, except
for the final installment of principal on any such Investor Interest and the
Redemption Price for any Investor Interests, if so called, which, in each case,
shall be payable as provided herein. The funds represented by any such checks
in respect of interest or principal returned undelivered shall be held in
accordance with Section 3.3.

 

(c)                                  With
respect to any Payment Date on which the final installment of principal and
interest on a Series of Investor Interests is to be paid and upon the
Indenture Trustee having received notice from the Issuer that such final
installment has been made, the Indenture Trustee shall notify each
Interestholder of such Series of Investor Interests as of the Record Date
for such Payment Date of the fact

 

8

 

that the final installment of principal of and
interest on such Investor Interest is to be paid on such Payment Date.  With respect to Book-Entry Interests for
which Definitive Interests have not been issued, such notice shall be sent on
the Business Day prior to such Payment Date by facsimile, and with respect to
Definitive Interests, such notice shall be sent not later than three Business
Days after such Record Date in accordance with Section 11.5(a),
and, in each case, shall specify that such final installment shall be payable
only upon presentation and surrender of such Investor Interest and shall
specify the place where such Investor Interest may be presented and surrendered
for payment of such installment.  The
Indenture Trustee shall not be liable for any failure to provide notice to the
Interestholders as required pursuant to this Section 2.7(c) to
the extent it has not received notice of such expected final Payment Date from
the Issuer not later than two Business Days after the Record Date.  Notices in connection with redemptions of
Investor Interests shall be mailed to Interestholders as provided in Section 10.2.

 

SECTION 2.8  Cancellation of Investor Interests.  All Investor Interests surrendered for
payment, redemption, exchange or registration of transfer shall, if surrendered
to any Person other than the Indenture Trustee, be delivered to the Indenture
Trustee and shall be promptly canceled by the Indenture Trustee.  The Issuer may at any time deliver to the
Indenture Trustee for cancellation any Investor Interests previously
authenticated and delivered hereunder which the Issuer may have acquired in any
lawful manner whatsoever, and all Investor Interests so delivered shall be
promptly canceled by the Indenture Trustee. 
No Investor Interests shall be authenticated in lieu of or in exchange
for any Investor Interests canceled as provided in this Section 2.8,
except as expressly permitted by this Indenture or the related Series Supplement.  All canceled Investor Interests 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.

 

SECTION 2.9  Release of Collateral.  If the Indenture is or is required to be
qualified under the Trust Indenture Act, the Indenture Trustee shall release
property from the Lien of this Indenture, other than as permitted by Sections
3.17, 8.2, 8.4 and 11.1, only upon receipt of an
Issuer Request accompanied by an Officer’s Certificate, an Opinion of Counsel
and (to the extent required by the Trust Indenture Act) Independent
Certificates in accordance with Sections 314(c) and 314(d)(1) of the
Trust Indenture Act.

 

SECTION 2.10  Book-Entry Interests.  Unless otherwise provided in the applicable Series Supplement,
each Series of Investor Interests, upon original issuance, shall be issued
in the form of a typewritten Investor Interest or Investor Interests
representing the Book-Entry Interests, to be delivered to The Depository Trust
Company, the initial Clearing Agency by or on behalf of the Issuer and such
Investor Interest or Investor Interests shall be registered in the Register in
the name of the nominee of the Clearing Agency (initially, Cede &
Co.).  No Beneficial Owner of an Investor
Interest shall receive a Definitive Interest representing such Beneficial Owner’s
interest in such Investor Interest, except as provided in Section 2.12.  Unless and until Definitive Interests with
respect to such Investor Interests have been issued to such Beneficial Owners
pursuant to Section 2.12, with respect to such Investor Interests:

 

(a)                                  the
provisions of this Section 2.10 shall be in full force and effect;

 

(b)                                 the
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 such Investor Interests and the giving of instructions or
directions hereunder) as the sole Holder of such Investor Interests and shall
have no obligation to such Beneficial Owners;

 

(c)                                  to
the extent that the provisions of this Section 2.10 conflict with
any other provisions of this Indenture, the provisions of this Section 2.10
shall control;

 

9

 

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

 

(e)                                  whenever
this Indenture requires or permits actions to be taken based upon instructions
or directions of Holders of Investor Interests evidencing a specified
percentage of the Outstanding Amount of the Investor Interests, the Clearing
Agency shall be deemed to represent such percentage only to the extent that it
has (i) received written instructions to such effect from Beneficial
Owners of Investor Interests and/or Clearing Agency Participants owning or
representing, respectively, such required percentage of the beneficial interest
in the Investor Interests and  (ii) has
delivered such instructions to the Indenture Trustee.

 

SECTION 2.11  Notices to Clearing Agency.  With respect to any Investor Interests issued
as Book-Entry Interests, whenever a notice or other communication to the
Interestholders is required under this Indenture, unless and until Definitive
Interests representing such Investor Interests shall have been issued to the
related Beneficial Owners of Investor Interests pursuant to Section 2.12,
the Indenture Trustee shall give all such notices and communications specified
herein to be given to the related Interestholders to the Clearing Agency and
shall have no obligation to such Beneficial Owners.

 

SECTION 2.12  Definitive Interests.  If for any Investor Interests issued as
Book-Entry Interests: (i) the Issuer advises the Indenture Trustee in
writing that the Clearing Agency is no longer willing or able to properly
discharge its responsibilities with respect to such Investor Interests and the
Issuer is unable to locate a qualified successor; (ii) the Issuer, at its
option, advises the Indenture Trustee in writing that it elects to terminate
the book-entry system through the Clearing Agency; or (iii) after the
occurrence of an Event of Default or a Servicing Default, Beneficial Owners
representing beneficial interests aggregating at least a majority of the
Outstanding Amount of such Investor Interests advise the Clearing Agency in
writing that the continuation of a book-entry system through the Clearing
Agency is no longer in the best interests of such Beneficial Owners, then the
Clearing Agency shall notify all Beneficial Owners and the Indenture Trustee in
writing of the occurrence of any such event and of the availability of
Definitive Interests to such Beneficial Owners requesting the same.  Upon surrender to the Indenture Trustee of
the typewritten Investor Interest or Investor Interests representing such
Book-Entry Interests by the Clearing Agency, accompanied by registration
instructions, the Issuer shall execute and the Indenture Trustee shall
authenticate the related Definitive Interests in accordance with the instructions
of the Clearing Agency.  None of the
Issuer, the Registrar or the Indenture Trustee shall be liable for any delay in
delivery of such instructions and may conclusively rely on, and shall be fully
protected in relying on, such instructions. 
Upon the issuance of such Definitive Interests, the Indenture Trustee
shall recognize the Holders of such Definitive Interests as
Interestholders.  The Indenture Trustee
shall not be liable if the Issuer or the Indenture Trustee is unable to locate
a qualified successor Depository (or a successor Clearing Agency).

 

SECTION 2.13  Seller as Interestholder.  The Seller in its individual or any other
capacity may become the owner or pledgee of Investor Interests of any Series and
may otherwise deal with the Issuer or its affiliates with the same rights it
would have if it were not the Seller.

 

SECTION 2.14  Tax Treatment.  Unless otherwise specified in a Series Supplement
with respect to Investor Interests of a Series (or with respect to Classes
of Investor Interests of a Series), the Issuer and the Indenture Trustee
entering into this Indenture, and the Interestholders and the Beneficial
Owners, by acquiring any Investor Interest or interest therein, (i) express
their intention that such Investor Interests

 

10

 

qualify under applicable tax law as indebtedness
secured by the Collateral and (ii) unless otherwise required by
appropriate taxing authorities, agree to treat the Investor Interests as
indebtedness of the Issuer secured by the Collateral for the purpose of federal
income, state and local income and franchise taxes, any applicable single
business tax, and any other taxes imposed upon, measured by or based upon gross
or net income.  To the extent that the
Issuer and the Indenture Trustee determine in a Series Supplement that the
Investor Interests of that Series will have tax attributes that are
different than those described in the preceding sentence, the Issuer and the
Indenture Trustee, and the holders of the Investor Interests of that Series,
will agree to be bound by such determination.

 

SECTION 2.15  Special Terms Applicable to Subsequent
Transfers of Certain Interests.

 

(a)                                  The
Investor Interests may not have been registered under the Securities Act, or
the securities laws of any other jurisdiction. 
Consequently, such Investor Interests (the “Unregistered Interests”)
are not transferable other than pursuant to an exemption from the registration
requirements of the Securities Act and satisfaction of certain other provisions
specified herein or in the related Series Supplement. Unless otherwise
provided in the related Series Supplement, no sale, pledge or other
transfer of any Unregistered Interest (or interest therein) after the date
thereof may be made by any Person unless either such sale, pledge or other
transfer is (i) otherwise made in a transaction exempt from the
registration requirements of the Securities Act, in which case (A) the
Indenture Trustee shall require that both the prospective transferor and the
prospective transferee certify to the Indenture Trustee and the Seller in
writing the facts surrounding such transfer, which certification shall be in
form and substance satisfactory to the Indenture Trustee and the Seller, and (B) the
Indenture Trustee shall require a written opinion of counsel (which shall not
be at the expense of the Seller, the Servicer or the Indenture Trustee)
satisfactory to the Seller and the Indenture Trustee to the effect that such
transfer will not violate the Securities Act or 
(ii) satisfies the restrictions on transfer set forth in the
applicable Series Supplement. Neither the Seller nor the Indenture Trustee
shall be obligated to register any Unregistered Interests under the Securities
Act, qualify any Unregistered Interests under the securities laws of any state
or provide registration rights to any purchaser or holder thereof.

 

(b)                                 Unless
otherwise provided in the related Series Supplement, the Unregistered
Interests may not be acquired by or for the account of a Benefit Plan and, by
accepting and holding an Unregistered Interest, the Holder thereof shall be
deemed to have represented and warranted that it is not a Benefit Plan and, if
requested to do so by the Seller or the Indenture Trustee, the Holder of an
Unregistered Interest shall execute and deliver to the Indenture Trustee an
investment letter in the form set forth in Exhibit A or such other
certifications as provided in the related Series Supplement.

 

(c)                                  Unless
otherwise provided in the related Series Supplement, Unregistered
Interests shall be issued in the form of Definitive Interests, shall be in
fully registered form and Sections 2.10, 2.11 and 2.12 of
this Indenture shall not apply thereto.

 

(d)                                 Each
Unregistered Interest shall bear legends to the effect set forth in subsections
(a) and (b) (if subsection (b) is applicable) above or as
otherwise provided in the related Series Supplement.

 

SECTION 2.16  Representations and Warranties.

 

(a)                                  The
Issuer hereby represents, warrants and covenants to the Indenture Trustee as follows
as of the date hereof:

 

(i)                                     General.
This Indenture creates a valid and continuing security interest in the Issuer’s
right, title and interest in, to and under the Collateral which (a) is enforceable

 

11

 

against creditors of and purchasers from the Issuer, as such
enforceability may be limited by applicable law, now or hereafter in effect,
and by general principles of equity (whether considered in a suit at law or in
equity), and (b) will be prior to all other Liens (other than Permitted
Liens) in such property.

 

(ii)                                  Characterization.
The Receivables constitute “accounts”, “general intangibles” or “chattel paper”
within the meaning of UCC Section 9-102.

 

(iii)                               Creation. The
Issuer owns and has good and marketable title to such Conveyed Assets free and
clear of any Lien, claim or encumbrance of any Person (other than Permitted
Liens).

 

(iv)                              Perfection.
The Issuer has caused, or will have caused within ten (10) days after the
date hereof or any applicable Addition Date, the filing of all appropriate
financing statements in the proper filing office in the appropriate
jurisdictions under applicable law in order to perfect the Indenture Trustee’s
security interest in the Collateral.

 

(v)                                 Priority.
Other than the security interest granted to the Indenture Trustee pursuant to
this Indenture, the Issuer has not pledged, assigned, sold, granted a security
interest in, or otherwise conveyed any of the Collateral except as permitted by
this Indenture and the other Basic Documents. The Issuer has not authorized the
filing of and is not aware of any financing statements against the Issuer that
include a description of collateral covering the Collateral other than any
financing statement (i) in favor of the Indenture Trustee or (ii) that
has been terminated. The Issuer is not aware of any judgment lien or tax lien
filings against the Issuer.

 

(vi)                              Survival
of Perfection Representations. Notwithstanding any other provision of this
Agreement or any other Basic Document, the representations contained in this Section 2.16(a) shall
be continuing and remain in full force and effect.

 

(b)                                 No
Waiver. The Indenture Trustee shall not without the consent of S&P (if
S&P is then rating any outstanding Series) waive a breach of any of the
representations and warranties contained in Section 2.16(a).

 

ARTICLE III

COVENANTS

 

SECTION 3.1  Payment of Principal and Interest.  The Issuer shall duly and punctually pay the
principal of and interest on the Investor Interests in accordance with the
terms of the Investor Interests and this Indenture.  On each date on which any payments are to be
made, the Issuer shall cause amounts on deposit in the Collection Account to be
paid to the Interestholders in accordance with the terms of the Investor Interests
and this Indenture, less amounts properly withheld under the Code by any Person
from a payment to any Interestholder of interest and/or principal.  Any amounts so withheld shall be considered
as having been paid by the Issuer to such Interestholder for all purposes of
this Indenture.

 

SECTION 3.2  Maintenance of Agency Office.  As long as any of the Investor Interests
remains Outstanding, the Issuer shall maintain in the Borough of Manhattan, the
City of New York, an office (the “Agency Office”), being an office or
agency where Investor Interests may be surrendered to the Issuer for
registration of transfer or exchange, and where notices and demands to or upon
the Issuer in respect of the Investor Interests and this Indenture may be
served.  The Issuer hereby initially
appoints the Indenture 

 

12

 

Trustee to serve
as its agent for the foregoing purposes, which address is The Bank of New York,
101 Barclay Street, 12-E, New York, New York 10286.  If the Indenture Trustee is not the agent,
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 of the Indenture Trustee, 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.

 

(a)                                  All
disbursements of amounts due and payable with respect to any Investor Interests
that are to be made from amounts withdrawn from the applicable Collection
Account shall be made on behalf of the Issuer by the Indenture Trustee or by
another Paying Agent, and no amounts so withdrawn from such Collection Account
for payments of Investor Interests shall be paid over to the Issuer except as
provided in this Section 3.3.

 

(b)                                 On
or before each date on which payments are to be made or the Redemption Date (if
applicable), the Issuer shall deposit or cause to be deposited in the
applicable Collection Account aggregate sums sufficient to pay the amounts then
becoming due with respect to the Investor Interests, such sums to be held in
trust for the benefit of the Persons entitled thereto and (unless the Paying
Agent is the Indenture Trustee) shall promptly notify the Indenture Trustee in
writing of its action or failure to so act.

 

(c)                                  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), subject to the provisions of this Section 3.3,
that such Paying Agent shall:

 

(i)                                     hold
all sums held by it for the payment of amounts due with respect to the Investor
Interests 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 herein provided;

 

(ii)                                  give
the Indenture Trustee notice of any default by the Issuer (or any other obligor
upon the Investor Interests) of which it has actual knowledge in the making of
any payment required to be made with respect to the Investor Interests;

 

(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)                              immediately
resign as a Paying Agent and forthwith pay to the Indenture Trustee all sums
held by it in trust for the payment of Investor Interests if at any time it
ceases to meet the standards required to be met by a Paying Agent in effect at
the time of determination; and

 

(v)                                 comply
with all requirements of the Code with respect to the withholding from any
payments made by it on any Investor Interests of any applicable withholding
taxes imposed thereon and with respect to any applicable reporting requirements
in connection therewith.

 

13

 

(d)                                 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 the sums were held by such Paying Agent; and upon such
payment by any Paying Agent to the Indenture Trustee, such Paying Agent shall
be released from all further liability with respect to such money.

 

(e)                                  Subject
to applicable laws with respect to 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 Investor Interest and remaining unclaimed for one year
after such amount has become due and payable shall be discharged from such
trust and be paid by the Indenture Trustee to the Issuer upon receipt of an
Issuer Request; and the Holder of such Investor Interest shall thereafter, as
an unsecured general creditor, look only to the Issuer for payment thereof (but
only to the extent of the amounts so paid to the Issuer), 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 payment,
may at the expense of the Issuer cause to be published once, in a 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 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 expense of the Issuer, any other reasonable means
of notification of such repayment (including mailing notice of such repayment
to Holders whose Investor Interests 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
Holder).

 

SECTION 3.4  Existence.  The Issuer shall keep in full effect its
existence and rights as a statutory trust under the laws of the State of
Delaware, 12 Del. C. Section 3801 et  seq., and shall obtain
and preserve its qualification to do business in each jurisdiction in which
such qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Investor Interests, the Collateral and
each other instrument or agreement included in the Trust Estate.

 

SECTION 3.5  Protection of Trust Estate; Acknowledgment
of Pledge.  The Issuer shall from
time to time execute and deliver all such supplements and amendments hereto and
all such financing statements, amendments thereto, continuation statements,
assignments, certificates, instruments of further assurance and other instruments,
and shall take such other action necessary or advisable to:

 

(a)                                  maintain
or preserve the Lien and security interest (and the priority thereof) of this
Indenture or carry out more effectively the purposes hereof, including by
making the necessary filings of financing statements or amendments thereto
within 60 days after the occurrence of any of the following:

 

(A)                              any change in the Issuer’s name,

 

(B)                                any change in the location of the Issuer’s
principal place of business,

 

(C)                                any merger or consolidation or other
change in the Issuer’s identity or organizational structure and by promptly
notifying in writing the Indenture Trustee of any such filings and

 

(D)                               any other change or occurrence that would
make any financing statement

 

14

 

or amendment
seriously misleading within the meaning of Section 9-402(7) of
the UCC or any successor statute thereto;

 

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

 

(c)                                  enforce
the rights of the Indenture Trustee and the Interestholders in any of the
Collateral; or

 

(d)                                 preserve
and defend title to the Trust Estate and the rights of the Indenture Trustee
and the Interestholders in such Trust Estate against the claims of all Persons
and parties.  In addition, the Issuer
shall deliver to the Indenture Trustee all documents constituting “instruments”
(as defined in the UCC as in effect in the applicable jurisdiction) as shall
have been delivered to it by the Seller pursuant to the terms of the Sale and
Servicing Agreement relating to the Trust Estate with such endorsements
attached as the Indenture Trustee may reasonably require.

 

SECTION 3.6  Opinions as to Trust Estate.

 

(a)                                  On
the date hereof, the Issuer shall furnish to the Indenture Trustee an Opinion
of Counsel with respect to the filing of such financing statements and
continuation statements as are necessary to perfect and make effective the Lien
and security interest of this Indenture and reciting the details of such
action.

 

(b)                                 On
or before April 30 of the calendar year following the year, if any, in
which any Series receives a rating from a Rating Agency, the Issuer shall
furnish to the Indenture Trustee an Opinion of Counsel either stating that, in
the opinion of such counsel, 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
is necessary to maintain the Lien and security interest created by this
Indenture and reciting the details of such action or stating that in the
opinion of such counsel no such action is necessary to maintain the Lien and
security interest created by this Indenture. 
Such Opinion of Counsel shall also 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 commercially reasonable efforts
to not permit any action to be taken by others that would release any Person
from any of such Person’s material covenants or obligations under any
instrument or agreement included in the Trust Estate 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 otherwise expressly provided in this Indenture, the Sale and
Servicing Agreement, the Receivables Purchase Agreement, any Receivables
Transfer Agreement or such other instrument or agreement included in the Trust
Estate.

 

(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 herein or in the Basic Documents or an Officer’s
Certificate of the Issuer shall be deemed to be action taken by the
Issuer.  The Indenture Trustee shall not
be responsible for the action or inaction of the

 

15

 

Servicer. 
Initially, the Issuer has contracted with the Servicer to assist the
Issuer in performing its duties under this Indenture.  Pursuant to the Administration Agreement, the
Issuer has appointed the Administrator as its attorney-in-fact.

 

(c)                                  The
Issuer shall punctually perform and observe all of its obligations and agreements
contained in this Indenture, the Basic Documents and in the instruments and
agreements included in the Trust Estate, including filing or causing to be
filed all UCC financing statements and continuation statements required to be
filed under the terms of this Indenture, the Sale and Servicing Agreement, any
Receivables Transfer Agreement and the Receivables Purchase Agreement 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 Basic Document or any provision thereof without the consent of
the Indenture Trustee or the Control Investors of each outstanding Series.

 

(d)                                 If
the Issuer shall have knowledge of the occurrence of a Servicing Default under
the Sale and Servicing Agreement, the Issuer shall promptly notify the
Indenture Trustee and the Rating Agencies in writing thereof, and shall specify
in such notice the response or action, if any, the Issuer has taken or is
taking with respect to such default.  If
a Servicing Default shall arise from the failure of the Servicer to perform any
of its duties or obligations under the Sale and Servicing Agreement, any
Receivables Transfer Agreement or the Receivables Purchase Agreement with
respect to the Receivables in the Accounts, the Issuer and the Indenture
Trustee shall take all reasonable steps available to them pursuant to the Sale
and Servicing Agreement, the related Receivables Transfer Agreement and the
Receivables Purchase Agreement to remedy such failure.

 

(e)                                  As
promptly as reasonably possible after the giving of notice of termination to
the Servicer of the Servicer’s rights and powers pursuant to Section 7.1
of the Sale and Servicing Agreement, the Issuer shall appoint a successor
Servicer (the “Successor Servicer”) as provided in Section 7.2 of the Sale
and Servicing Agreement, and such Successor Servicer shall accept its
appointment by a written assumption in a form acceptable to the Indenture
Trustee. If a Successor Servicer has not been appointed and accepted its
appointment at the time when the previous Servicer ceases to act as Servicer,
the Indenture Trustee without further action, but subject to the provisions of Section 7.2
of the Sale and Servicing Agreement, shall automatically be appointed the
Successor Servicer. The Indenture Trustee may resign as the Servicer by giving
written notice of such resignation to the Issuer and in such event shall be
released from such duties and obligations, such release not to be effective
until the date a Successor Servicer enters into a servicing agreement with the
Issuer as provided below. Upon delivery of any such notice to the Issuer, the
Issuer shall obtain a new Servicer as the Successor Servicer under the Sale and
Servicing Agreement.  Any Servicer other
than the Indenture Trustee shall: (i) be an established Person having a
net worth of not less than $50,000,000 and whose regular business includes the
servicing of receivables similar to the Receivables; (ii) enter into a
servicing agreement with the Issuer having substantially the same provisions as
the provisions of the Sale and Servicing Agreement applicable to the Servicer;
and (iii) not be a competitor of a Textron Inc. subsidiary or division,
and not be a subsidiary or Affiliate of a competitor of a Textron Inc.
subsidiary or division, in either case, unless such competitor (or subsidiary
or Affiliate) has signed a confidentiality agreement with respect to the
information regarding the Receivables. If within 30 days after the delivery of
the notice referred to above, the Issuer shall not have obtained such a
Successor Servicer, the Indenture Trustee may appoint, or may petition a court
of competent jurisdiction to appoint, a Successor Servicer. In connection with
any such appointment, the Indenture Trustee may make such arrangements for the
compensation of such Successor Servicer as it and such Successor Servicer shall
agree, subject to the limitations set forth below and in the Sale and Servicing
Agreement, and in accordance with Section 7.2 of the Sale and Servicing
Agreement, the Issuer shall enter into an agreement with such Successor
Servicer for the servicing of the Receivables (such agreement to be in form and
substance satisfactory to the Indenture Trustee).  Notwithstanding

 

16

 

anything herein or in the Sale and Servicing Agreement
to the contrary, in no event shall the Indenture Trustee be liable for any
Monthly Servicing Fee or for any differential in the amount of the Monthly
Servicing Fee paid hereunder and the amount necessary to induce any Successor
Servicer to act as Successor Servicer under this Indenture and the transactions
set forth or provided for herein.  If the
Indenture Trustee shall succeed to the previous Servicer’s duties as Servicer,
it shall do so in its individual capacity and not in its capacity as Indenture
Trustee and, accordingly, the provisions of Article VI shall be
inapplicable to the Indenture Trustee in its duties as the Successor
Servicer.  If the Indenture Trustee shall
become the Successor Servicer under the Sale and Servicing Agreement, the
Indenture Trustee shall be entitled to appoint as Servicer any one of its
Affiliates or perform any of its duties in such capacity through an agent or an
Affiliate; provided, however, that the Indenture Trustee shall be
fully liable for the actions and omissions of such Affiliate or agent in its
capacity as Successor Servicer.

 

(f)                                    Upon
any termination of the Servicer’s rights and powers pursuant to the Sale and
Servicing Agreement, the Issuer shall promptly notify the Indenture Trustee. As
soon as a Successor Servicer is appointed, the Issuer shall notify the
Indenture Trustee of such appointment, specifying in such notice the name and address
of such Successor Servicer.

 

(g)                                 Without
derogating from the absolute nature of the assignment Granted to the Indenture
Trustee or the rights of the Indenture Trustee under this Indenture, the Issuer
agrees (i) that it will not, without the prior written consent of the
Indenture Trustee and the prior satisfaction of the Rating Agency Condition
with respect thereto, amend, modify, waive, supplement, terminate or surrender,
or agree to any amendment, modification, supplement, termination, waiver or surrender
of, the terms of any Collateral (except to the extent otherwise provided in the
Sale and Servicing Agreement) or the Basic Documents (except to the extent
otherwise provided in the Basic Documents), or waive timely performance or
observance by the Servicer or the Seller of its obligations under the Sale and
Servicing Agreement or this Indenture or the Originator of its obligations
under the Receivables Purchase Agreement; and (ii) that any such amendment
shall not increase or reduce in any manner the amount of, or accelerate or
delay the timing of, Collections or distributions that are required to be made
for the benefit of the Interestholders without the consent of the Holders of
all Outstanding Investor Interests.  If
any such amendment, modification, supplement or waiver shall be so consented to
by the Indenture Trustee or such Holders, as required, the Issuer agrees,
promptly following a request by the Indenture Trustee to do so, to execute and
deliver, in its own name and at its own expense, such agreements, instruments,
consents and other documents as the Indenture Trustee may deem necessary or
appropriate in the circumstances.

 

SECTION 3.8  Reserved.

 

SECTION 3.9  Books and Records.  The Issuer shall keep proper books of record
and account in which full, true and correct entries shall be made of all
dealings and transactions in relation to the Collateral and its business
activities in accordance with GAAP, and shall permit the Indenture Trustee and
any Holder of at least 51% of the Outstanding Investor Interests of any Series to
visit and inspect any of its properties, to examine and make abstracts from any
of its books and records and to discuss its affairs, finances and accounts with
its officers, directors, employees and independent public accountants, all at
such reasonable times upon reasonable notice and as often as may reasonably be
requested.

 

SECTION 3.10  Compliance with Laws.  The Issuer will comply with the requirements
of all applicable laws, rules, regulations and orders of all Governmental
Authorities, a violation of which, individually or in the aggregate for all
such violations, is reasonably likely to have a material adverse effect on the
Interestholders.

 

17

 

SECTION 3.11  Rule 144A Information.  For so long as any of the Investor Interests
are “restricted securities” within the meaning of Rule 144(a)(3) under
the Securities Act, the Issuer agrees to provide to any Interestholder or
Beneficial Owner, and to any prospective purchaser of Investor Interests
designated by such Interestholder or Beneficial Owner upon the request of such
Interestholder or Beneficial Owner or prospective purchaser, any information
required to be provided to such holder or prospective purchaser to satisfy the
conditions set forth in Rule 144A(d)(4) under the Securities Act.

 

SECTION 3.12  Annual Tax Information.  Unless otherwise specified in the related Series Supplement,
on or before January 31 of each calendar year, the Indenture Trustee shall
furnish to each Person who at any time during the preceding calendar year was
an Interestholder a statement prepared by or on behalf of the Issuer containing
the information that is necessary or desirable to enable the Interestholders to
prepare their tax returns.  The obligations
of the Issuer to prepare and the Indenture Trustee to distribute such
information shall be deemed to have been satisfied to the extent that
substantially comparable information shall be provided by the Indenture Trustee
pursuant to any requirements of the Code as from time to time in effect.

 

SECTION 3.13  Annual Statement as to Compliance.  The Issuer shall deliver to the Indenture
Trustee, on or before April 30 of each year an Officer’s Certificate
signed by an Authorized Officer of the Issuer, dated as of December 31 of
such year, stating that:

 

(a)                                  a
review of the activities of the Issuer during such fiscal year and of the
Issuer’s performance under this Indenture has been made under such Authorized
Officer’s supervision; and

 

(b)                                 to
the best of such Authorized Officer’s knowledge, based on such review, the
Issuer has fulfilled in all material respects all of its obligations under this
Indenture throughout such year, or, if there has been a default in the
fulfillment of any such obligation, specifying each such default known to such
Authorized Officer and the nature and status thereof and the steps, if any,
taken to remedy any such default. A copy of such certificate may be obtained by
any Interestholder by a request in writing to the Issuer addressed to the
Corporate Trust Office of the Indenture Trustee.

 

SECTION 3.14  Servicer’s Obligations.  The Issuer shall use its best efforts to
cause the Servicer to comply with its obligations under Sections 3.4, 3.5 and
3.6 of the Sale and Servicing Agreement.

 

SECTION 3.15  Notice of Events of Default.  The Issuer agrees to give the Indenture
Trustee and the Rating Agencies prompt written notice of each Event of Default
hereunder, each Servicing Default, any Insolvency Event with respect to the
Seller, each default on the part of the Seller or the Servicer of its
respective obligations under the Sale and Servicing Agreement, each default on
the part of an Originator of its obligations under the related Receivables
Transfer Agreement and each default on the part of TFC of its obligations under
the Receivables Purchase Agreement, in each case promptly after the discovery
thereof by the Issuer.

 

SECTION 3.16  Further Instruments and Acts.  Upon request of the Indenture Trustee, the
Issuer shall 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 3.17  Indenture Trustee’s Assignment of
Interests in Certain Receivables. 
The Indenture Trustee shall assign, without recourse, representation or
warranty, to the Servicer or the Seller, as the case may be, all of the
Indenture Trustee’s right, title and interest in and to any Receivable assigned
by the Issuer to the Servicer or the Seller, as applicable, pursuant to the
Receivables Purchase Agreement

 

18

 

or the Sale and Servicing Agreement (in each case, to
the extent so assigned and upon the receipt of any related payment, if
applicable), such assignment being an assignment outright and not for security;
and the Servicer or the Seller, as applicable, shall thereupon own the interest
purchased in such Receivable, free of any further obligation to the Indenture
Trustee, the Interestholders or the Residual Interestholder with respect
thereto; provided, however, that no such assignment to the
Servicer or the Seller shall be effective unless and until the Servicer or the
Seller, as applicable, has performed all of its obligations in full under the
Basic Documents.  If in any enforcement
suit or legal proceeding it is held that the Servicer may not enforce a
Receivable on the ground that it is not a real party in interest or a holder
entitled to enforce such Receivable, the Indenture Trustee shall, at the
Servicer’s expense, take such steps as the Servicer deems necessary to enforce
the Receivable, including bringing suit in the Indenture Trustee’s name, the
names of the Interestholders or the name of the Residual Interestholder.

 

SECTION 3.18  Consolidation or Merger of Issuer;
Disposition of Trust Assets; Permitted Assets.

 

(a)                                  The
Issuer shall not consolidate or merge with or into any other Person.

 

(b)                                 Except
as otherwise expressly permitted or contemplated by this Indenture or the other
Basic Documents, the Issuer shall not sell, convey, exchange, transfer or
otherwise dispose of any portion of the properties and assets included in the
Trust Estate to any Person.

 

(c)                                  In
addition to the Trust Estate, the Issuer may hold only those assets that would
not cause the Issuer to fail to be a QSPE.

 

SECTION 3.19  Successor or Transferee.  Upon a conveyance or transfer of all the
assets and properties of the Issuer pursuant to Section 3.18(b),
the Issuer shall be released from every covenant and agreement of this
Indenture to be observed or performed on the part of the Issuer with respect to
the Investor Interests immediately upon the delivery of written notice to the
Indenture Trustee from the Person acquiring such assets and properties stating
that the Issuer is to be so released.

 

SECTION 3.20  No Other Business.  The Issuer shall not engage in any business
or activity other than acquiring, holding and managing the Collateral and the
proceeds therefrom in the manner contemplated by the Basic Documents, issuing the
Investor Interests, making payments on the Investor Interests and the Residual
Interest and such other activities that are necessary, suitable or convenient
to accomplish the foregoing or are incidental thereto.

 

SECTION 3.21  No Borrowing.  The Issuer shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
indebtedness for money borrowed other than indebtedness for money borrowed in
respect of the Investor Interests or in accordance with the Basic Documents.

 

SECTION 3.22  Guarantees, Loans, Advances and Other
Liabilities.  Except as contemplated
by this Indenture or the other Basic Documents, the Issuer shall not make any
loan or advance or credit to, or 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, or 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.

 

SECTION 3.23  Capital Expenditures.  The Issuer shall not make any expenditure
(whether by long-term or operating lease or otherwise) for capital assets
(either real, personal or intangible property)

 

19

 

other than the purchase of the Receivables and other
property and rights from the Seller on the Initial Closing Date and from time
to time thereafter pursuant to the Basic Documents.

 

SECTION 3.24  Restricted Payments.  Except for payments of principal or interest
on or redemption of the Investor Interests, so long as any Investor Interests
are outstanding, 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 Issuer
or any owner of a beneficial interest in the Issuer or otherwise, in each case
with respect to any ownership or equity interest or similar security in or of
the Issuer or to the Servicer;

 

(b)                                 redeem,
purchase, retire or otherwise acquire for value any such ownership or equity
interest or similar security; or

 

(c)                                  set
aside or otherwise segregate any amounts for any such purpose;

 

provided,
however, that the Issuer may make, or cause to be made, distributions to
the Servicer, the Seller, the Indenture Trustee, the Issuer, the
Interestholders and the Residual Interestholder as permitted by, and to the
extent funds are available for such purpose under, the Sale and Servicing
Agreement, the Trust Agreement or the other Basic Documents.  The Issuer shall not, directly or indirectly,
make payments to or distributions from the Collection Account or any other
Trust Account except in accordance with the Basic Documents.

 

SECTION 3.25  Other Negative Covenants.  So long as any Investor Interests are
Outstanding, the Issuer shall not:

 

(a)                                  sell,
transfer, exchange or otherwise dispose of any of the properties or assets of
the Issuer, except the Issuer may:  (i) collect,
liquidate, sell or otherwise dispose of the Issuer’s interest in Receivables
including Designated Ineligible Receivables, (ii) make cash payments out
of the Trust Accounts and (iii) take other actions, in each case as
contemplated by the Trust Agreement and the other Basic Documents;

 

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

 

(c)                                  voluntarily
commence any insolvency, readjustment of debt, marshaling of assets and
liabilities or other proceeding, or apply for an order by a court or agency or
supervisory authority for the winding-up or liquidation of its affairs or any
other event specified in Section 5.1(e);

 

(d)                                 either
(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 Investor Interests under this
Indenture except as may be expressly permitted hereby, (ii) permit any
Lien, charge, excise, claim, security interest, mortgage or other encumbrance
(other than Permitted Liens) to be created on or extend to or otherwise arise
upon or burden the Trust Estate or any part thereof or any interest therein or
the proceeds thereof or (iii) permit the Lien of

 

20

 

this Indenture not to constitute a valid first priority security
interest in the Trust Estate (other than with respect to any such tax,
mechanics’ or other Lien); provided, however, that nothing in
this Section 3.25(d) shall prohibit any Permitted Liens.

 

(e)                                  amend
the Trust Agreement unless the Rating Agency Condition is satisfied prior to
such amendment;

 

(f)                                    change
its name or the jurisdiction of its formation without 60 days’ prior written
notice to the Indenture Trustee to allow the Indenture Trustee to file all
filings prepared by the Issuer (including filings of financing statements on
form UCC-1) and recordings necessary to maintain the perfection of the
interest of the Indenture Trustee on behalf of the Interestholders in the
Collateral pursuant to this Indenture. 
If the Issuer desires to so change its name or the jurisdiction of its
formation, the Issuer will make any required filings and prior to actually
changing its office or its name or the jurisdiction of its formation the Issuer
shall deliver to the Indenture Trustee (i) an Officer’s Certificate and (ii) copies
of all such required filings with the filing information duly noted thereon by
the office in which such filings were made; or

 

(g)                                 dissolve
or liquidate in whole or in part.

 

SECTION 3.26  Separate Corporate Existence of the Issuer.  The Issuer hereby acknowledges that the
parties to the Basic Documents are entering into the transactions contemplated
by the Basic Documents in reliance on the Issuer’s identity as a legal entity
separate from each Originator, TFC, the Seller and the other Affiliates of
TFC.  From and after the date hereof
until the date on which there are no Investor Interests of any Series or Class Outstanding,
the Issuer shall take such actions as shall be required in order that:

 

(a)                                  The
Issuer will maintain corporate records and books of account separate from those
of each of its Affiliates and stationery that are separate and distinct from
those of each of its Affiliates;

 

(b)                                 The
Issuer’s assets will be maintained in a manner that facilitates their
identification and segregation from those of any of its Affiliates;

 

(c)                                  The
Issuer will strictly observe statutory trust formalities in its dealings with
the public and with each of its Affiliates, and funds or other assets of the
Issuer will not be commingled with those of any of its Affiliates, except as
may be permitted by the Basic Documents. The Issuer will at all times, in its
dealings with the public and with each of its Affiliates, hold itself out and
conduct itself as a legal entity separate and distinct from each of its
Affiliates. The Issuer will not maintain joint bank accounts or other
depository accounts to which any of its Affiliates (other than the Servicer)
has independent access;

 

(d)                                 The
Issuer will compensate each of its employees, consultants and agents from the
Issuer’s own funds for services provided to the Issuer; and

 

(e)                                  The
Issuer will not hold itself out to be responsible for the debts of any of its
Affiliates.

 

SECTION 3.27  Representations and Warranties by the
Issuer to the Indenture Trustee.  The
Issuer hereby represents and warrants to the Indenture Trustee as follows:

 

21

 

(a)                                  Organization
and Good Standing.  The Issuer is a
statutory trust duly formed and validly existing in good standing under the
laws of the State of Delaware and has full power and authority to own its
properties and to conduct its business as such properties are presently owned
and such business is presently conducted.

 

(b)                                 Due
Qualification.  The Issuer is duly
qualified to do business, is in good standing as a foreign entity and has
obtained all necessary licenses and approvals in all jurisdictions in which the
conduct of its business requires such qualification, licenses or approvals and
in which the failure so to qualify or to obtain such licenses and approvals or
to preserve and maintain such qualification, licenses or approvals could
reasonably be expected to give rise to a material adverse effect on the
Interestholders.

 

(c)                                  Power
and Authority; Due Authorization. 
The Issuer (i) has all necessary 
power and authority to (A) execute and deliver this Indenture and
the other Basic Documents to which it is a party, (B) perform its
obligations under this Indenture and the other Basic Documents to which it is a
party and (C) make a Grant of the Collateral to the Indenture Trustee on
the terms and subject to the conditions herein provided and (ii) has duly
authorized by all necessary action such Grant and the execution, delivery and
performance of, and the consummation of the transactions provided for in, this
Indenture and the other Basic Documents to which it is a party.

 

(d)                                 Binding
Obligations.  This Indenture (i) constitutes
a grant to the Indenture Trustee of a security interest (as defined in the UCC)
in all of the Issuer’s right, title and interest in, to and under the
Collateral, free and clear of any Lien (other than Permitted Liens and Liens on
Collateral Security other than Financed Assets), which is enforceable with
respect to the existing Receivables owned by the Issuer and the proceeds
thereof upon execution and delivery of this Indenture and which will be
enforceable with respect to the Receivables hereafter acquired by the Issuer and
the proceeds thereof upon such acquisition by the Issuer and (ii) constitutes,
and each other Basic Document to which the Issuer is a party when duly executed
and delivered will constitute, a legal, valid and binding obligation of the
Issuer, enforceable against the Issuer in accordance with its terms, except (A) as
such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of
creditors’ rights generally and (B) as such enforceability may be limited
by general principles of equity, regardless of whether such enforceability is
considered in a proceeding in equity or at law.

 

(e)                                  No
Conflict or Violation.  The
execution, delivery and performance of, and the consummation of the
transactions contemplated by, this Indenture and the other Basic Documents to
be signed by the Issuer, and the fulfillment of the terms hereof and thereof,
will not (i) conflict with, result in any breach of any of the terms and
provisions of, or constitute (with or without notice or lapse of time or both)
a material default under the Trust Agreement or any material indenture, loan
agreement, mortgage, deed of trust, or other agreement or instrument to which
the Issuer is a party or by which it or any of its respective properties is
bound, (ii) result in the creation or imposition of any Lien on any of the
Collateral pursuant to the terms of any such material indenture, loan
agreement, mortgage, deed of trust, or other material agreement or instrument
other than this Indenture and the other Basic Documents or (iii) conflict
with or violate any federal, state, local or foreign law or any decision,
decree, order, rule or regulation applicable to the Issuer or of any
Governmental Authority having jurisdiction over the Issuer, which conflict or
violation described in this clause (iii), individually or in the aggregate,
could reasonably be expected to have a material adverse effect on the
Interestholders.

 

22

 

(f)                                    Litigation
and Other Proceedings.  (i) There
is no action, suit, proceeding or investigation pending or, to the best
knowledge of the Issuer, threatened, against the Issuer before any Governmental
Authority and (ii) the Issuer is not subject to any order, judgment,
decree, injunction, stipulation or consent order of or with any Governmental
Authority that, in the case of either of the foregoing clauses (i) and
(ii), (A) asserts the invalidity of this Indenture or any other Basic
Document, (B) seeks to prevent the Grant of any Collateral by the Issuer
to the Indenture Trustee, the ownership or acquisition by the Issuer of a
material amount of Receivables or the consummation of any of the transactions
contemplated by this Indenture or any other Basic Document, (C) seeks any
determination or ruling that, in the reasonable judgment of the Issuer, would
materially and adversely affect the performance by the Issuer of its
obligations under this Indenture or any other Basic Document or the validity or
enforceability of this Indenture or any other Basic Document or (D) individually
or in the aggregate for all such actions, suits, proceedings and investigations
could reasonably be expected to have a material adverse effect on the
Interestholders.

 

(g)                                 Governmental
Approvals.  Except where the failure
to obtain or make such authorization, consent, order, approval or action could
not reasonably be expected to have a material adverse effect on the
Interestholders, all authorizations, consents, orders and approvals of, or
other actions by, any Governmental Authority that are required to be obtained
by the Issuer in connection with the Grant of the Collateral or the due
execution, delivery and performance by the Issuer of this Indenture or any
other Basic Document to which it is a party and the consummation by the Issuer
of the transactions contemplated by this Indenture and the other Basic
Documents to which it is a party have been obtained or made and are in full
force and effect.

 

(h)                                 Margin
Regulations.  The Issuer is not
engaged, principally or as one of its important activities, in the business of
extending credit for the purpose of purchasing or carrying margin stock (within
the meanings of Regulations T, U and X of the Board of Governors of the Federal
Reserve System).

 

(i)                                     Taxes.  The Issuer has filed (or there have been
filed on its behalf as a member of a consolidated group) all tax returns and
reports required by law to have been filed by it and has paid all taxes,
assessments and governmental charges thereby shown to be owing by it, other
than any such taxes, assessments or charges that are being diligently contested
in good faith by appropriate proceedings, for which adequate reserves in
accordance with GAAP have been set aside on its books and that have not given
rise to any Liens (other than Permitted Liens); provided, however,
that as of the date of this Indenture, the Issuer is a newly established entity
and as such has not been required to file any tax returns.

 

(j)                                     Solvency.  After giving effect to the transactions
contemplated by this Indenture and the other Basic Documents, the Issuer is
solvent and able to pay its debts as they come due and has adequate capital to
conduct its business as presently conducted.

 

(k)                                  Offices;
Legal Name.  The Issuer’s sole jurisdiction
of organization is the State of Delaware and such jurisdiction has not changed
within four months prior to the date of this Indenture.  The principal place of business and chief
executive office of the Issuer is located at 40 Westminster Street, P.O. Box
6687, Providence, Rhode Island 02940-6687.  The legal name of the Issuer is Textron
Financial Floorplan Master Note Trust and its organizational identification
number is 3375208.

 

23

 

(l)                                     Investment
Company Act.  The Issuer is not, and
is not controlled by, an “investment company” registered or required to be
registered under the Investment Company Act.

 

(m)                               Accuracy
of Information.  All certificates,
reports, statements, documents and other information furnished to the Indenture
Trustee by or on behalf of the Issuer pursuant to any provision of this
Indenture or any other Basic Document, or in connection with or pursuant to any
amendment or modification of, or waiver under, this Indenture or any other
Basic Document, shall, at the time the same are so furnished, be complete and
correct in all material respects on the date the same are furnished to the
Indenture Trustee.

 

(n)                                 Security
Interests.  No security agreement,
financing statement or equivalent security or Lien instrument listing the
Issuer as debtor covering all or any part of the Collateral is on file or of
record in any jurisdiction, except such as may have been filed, recorded or
made by the Issuer in favor of the Indenture Trustee on behalf of the
Interestholders in connection with this Indenture.  The Issuer has taken, or will take within 10
days after the date hereof, all action necessary to perfect such security
interest.

 

(o)                                 All
Filings Made.  All filings
(including, without limitation, UCC filings) necessary in any jurisdiction to
give the Indenture Trustee, upon the acquisition by the Issuer of any Eligible
Receivable, a first priority perfected security interest in such Eligible
Receivable have been made and will continue to be made by the Issuer as
necessary.

 

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 Investor Interests except as to:  (i) rights of registration of transfer
and exchange; (ii) substitution of mutilated, destroyed, lost or stolen
Investor Interests; (iii) rights of Interestholders to receive payments of
principal thereof and interest thereon; (iv) Sections  3.3, 3.4,
3.5, 3.15 and 3.16; (v) 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 Sections 4.2 and 4.4); and (vi) the
rights of Interestholders 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 Investor Interests, if:

 

(a)                                  either:

 

(i)                                     all
Investor Interests theretofore authenticated and delivered (other than (A) Investor
Interests that have been destroyed, lost or stolen and that have been replaced
or paid as provided in Section 2.5 and (B) Investor Interests
for whose 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
Investor Interests not theretofore delivered to the Indenture Trustee for
cancellation:

 

(A)                              have
become due and payable,

 

24

 

(B)                                will
be due and payable on their respective stated final maturity dates within one
year, or

 

(C)                                are
to be called for redemption permitted by this Indenture, if any, 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 (A), (B) or (C) of subsection 4.1(a)(ii) above,
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 each case derived from Collections on the Receivables allocable to
the Investor Interests of the applicable Series in accordance with the
Basic Documents, in trust for such purpose, in an amount sufficient to pay and
discharge the entire unpaid principal and accrued interest on such Investor
Interests not theretofore delivered to the Indenture Trustee for cancellation
when due;

 

(b)                                 the
Issuer has paid or caused to be paid or performed all amounts and obligations
which the Issuer may owe to or on behalf of the Indenture Trustee for the
benefit of the Interestholders under this Indenture or the Investor Interests;
and

 

(c)                                  the
Issuer has delivered to the Indenture Trustee an Officer’s Certificate of the
Issuer, an Opinion of Counsel and (if required by the Trust Indenture Act or is
requested by the Indenture Trustee) an Independent Certificate from a firm of
certified public accountants, each meeting the applicable requirements of Section 11.1
and each stating that all conditions precedent herein provided for relating to
the satisfaction and discharge of this Indenture have been complied with.

 

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 Investor Interests and this
Indenture and the applicable provisions of the Sale and Servicing Agreement and
the Series Supplement, to the payment, either directly or through any
Paying Agent, as the Indenture Trustee may determine, to the Holders of the
particular Investor Interests 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; provided, however,
that such monies need not be segregated from other funds except to the extent
required herein or in the Sale and Servicing Agreement or by applicable law.

 

SECTION 4.3  Repayment of Monies Held by Paying Agent.  In connection with the satisfaction and
discharge of this Indenture with respect to each Series of Investor
Interests, all monies then held by any Paying Agent other than the Indenture
Trustee under the provisions of this Indenture with respect to all such
Investor Interests 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.

 

SECTION 4.4  Duration of Position of Indenture Trustee.  Notwithstanding the earlier payment in full
of all principal and interest due to all Interestholders under the terms of the
Investor Interests of each Series and the cancellation of such Investor
Interests pursuant to Section 2.8, the Indenture Trustee shall
continue to act in the capacity as Indenture Trustee hereunder to the benefit
of the Residual Interestholder and the Indenture Trustee, for the benefit of
the Residual Interestholder, shall comply with its obligations under the Sale
and Servicing Agreement and the other Basic Documents, as appropriate, until
such time as all distributions due to the Residual Interestholder have been
paid in full.

 

25

 

ARTICLE V

DEFAULT AND REMEDIES

 

SECTION 5.1  Events of Default.  For the purposes of this Indenture, “Event of
Default” wherever used herein, means any one of the following events:

 

(a)                                  failure
to pay any interest on any Investor Interest as and when the same becomes due
and payable and such default continues unremedied for a period of thirty-five
days; or

 

(b)                                 failure
to pay in full the unpaid principal balance, together with all accrued and
unpaid interest, attributable to any Series or Class of Investor
Interests on or prior to the Final Payment Date for such Series or Class;
or

 

(c)                                  default
in the observance or performance of any covenant or agreement of the Issuer
made in this Indenture (other than a covenant or agreement, a default in the
observance or performance of which is elsewhere in this Section 5.1
specifically dealt with), or any representation or warranty of the Issuer made
in this Indenture or in any certificate or other writing delivered pursuant
hereto or in connection herewith proving to have been incorrect in any material
respect as of the time when the same shall have been made, for a period of 60
days after there shall have been given to the Issuer by the Indenture Trustee
or to the Issuer and the Indenture Trustee by the Holders of at least 25% of
the Outstanding Amount of the Investor Interests of all Outstanding Series, a
written notice specifying such default or incorrect representation or warranty
and requiring it to be remedied and stating that such notice is a notice of
Default hereunder; or

 

(d)                                 the
filing of a decree or an order for relief by a court having jurisdiction in the
premises in respect of the Issuer or any substantial part of the Trust Estate
in an involuntary case under the Bankruptcy Code, and such order shall have
continued undischarged or unstayed for a period of 60 consecutive days; or the
filing of a decree or order by a court having jurisdiction in the premises approving
as properly filed a petition seeking reorganization, arrangement, adjustment or
composition of the Issuer under any other Insolvency Law, and such decree or
order shall have continued undischarged or unstayed for a period of 60
consecutive days; or the filing of a decree or order of a court having
jurisdiction in the premises appointing a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of the Issuer or for any
substantial part of the Trust Estate, or ordering the winding-up or liquidation
of the Issuer’s affairs, and such decree or order shall have continued
undischarged and unstayed for a period of 60 consecutive days; or

 

(e)                                  the
commencement by the Issuer of a voluntary case under the Bankruptcy Code; or
the filing of a petition or answer or consent by the Issuer seeking
reorganization, arrangement, adjustment or composition under any other
Insolvency Law, or consent to the filing of any such petition, answer or
consent; or the consent by the Issuer to the appointment or taking of
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 an assignment for the benefit
of creditors, or the admission in writing of its inability to pay its debts
generally as such debts become due.

 

The Issuer shall deliver
to the Indenture Trustee within two Business Days after learning of the
occurrence thereof, written notice in the form of an Officer’s Certificate of
any event which with the giving of notice and the lapse of time would become an
Event of Default, its status and what action the Issuer is taking or proposes
to take with respect thereto.

 

26

 

SECTION 5.2  Acceleration of Maturity; Rescission and
Annulment.

 

(a)                                  If
an Event of Default described in Section 5.1(a), (b) or
(c) should occur and be continuing with respect to any Series of
Investor Interests, then and in every such case, unless the principal amount of
the Investor Interests shall have already become due and payable, either the
Indenture Trustee or the Control Investors of the affected Series may
declare the principal of those Investor Interests to be immediately due and
payable, by a notice in writing to the Issuer (and to the Indenture Trustee if
given by the Control Investors of the affected Series) setting forth the Event
or Events of Default, and upon any such declaration the unpaid principal amount
of such Investor Interests, together with accrued and unpaid interest thereon
through the date of acceleration, shall become immediately due and
payable.  If an Event of Default
described in Section 5.1(d) or (e) should occur
and be continuing, the unpaid principal amount of all Investor Interests,
together with accrued and unpaid interest thereon through the date of
acceleration, shall become immediately due and payable.  Any such declaration will constitute an Early
Amortization Event for that Series and may be rescinded as set forth in Section 5.2(b).

 

(b)                                 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 provided in this Article V,
the Control Investors of the affected Series by written notice to the
Issuer and the Indenture Trustee may rescind and annul such declaration and its
consequences; provided, however, that no such rescission and
annulment shall extend to or affect any subsequent Event of Default or impair
any right consequent thereto; and provided, further, that if the
Indenture Trustee shall have proceeded to enforce any right under this
Indenture and such Proceedings shall have been discontinued or abandoned
because of such rescission and annulment or for any other reason, or shall have
been determined adversely to the Indenture, then and in every such case, the
Indenture Trustee, the Issuer and the Interestholders, as the case may be,
shall be restored to their respective former positions and rights hereunder,
and all rights, remedies and powers of the Indenture Trustee, the Issuer and
the Interestholders, as the case may be, shall continue as though no such
Proceedings had been commenced.

 

SECTION 5.3  Collection of Indebtedness and Suits for
Enforcement by Indenture Trustee.

 

(a)                                  The
Issuer covenants that if there shall occur an Event of Default under Section 5.1(a) or
(b) that has not been waived pursuant to Section 5.12,
then the Issuer shall, upon demand of the Indenture Trustee, pay to the
Indenture Trustee, for the ratable benefit of the parties to receive such
amounts pursuant to the terms of this Indenture, the entire amount then due and
payable on the Investor Interests for principal and interest, with interest
upon the overdue principal for each Series of Investor Interests, at the
rate borne by such Investor Interests and in addition thereto such further
amount as shall be sufficient to cover the costs and expenses of collection,
including any fees and Increased Cost Amounts, the reasonable compensation,
expenses, disbursements and advances of the Indenture Trustee and its agents
and counsel, with all such amounts applied as described in Section 5.4(b).

 

(b)                                 The
Indenture Trustee, following the occurrence of an Event of Default, shall have
full right, power and authority to take, or defer from taking, any and all acts
with respect to the administration, maintenance or disposition of the
Collateral, including the exercise of any remedies specified in Sections 5.3
and 5.4, as directed by the Control Investors of the affected Series.

 

(c)                                  If
the Issuer shall fail forthwith to pay such amounts 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 Investor Interests and
collect in the manner provided by law out of the property of the Issuer or
other obligor upon such Investor Interests, wherever situated, the monies
adjudged or decreed to be payable.

 

27

 

(d)                                 If
an Event of Default occurs and is continuing, the Indenture Trustee may, as more
particularly provided in Section 5.4, in its discretion or at the
direction of the Control Investors of the affected Series, proceed to protect
and enforce its rights and the rights of the Interestholders, 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, by any Series Supplement
or by applicable law.

 

(e)                                  If
there shall be pending, relative to the Issuer or any other obligor upon the
Investor Interests or any Person having or claiming an ownership interest in
the Trust Estate, Proceedings under any Insolvency Law, or if 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 Investor Interests, or to the creditors or property of the Issuer or such
other obligor, the Indenture Trustee, irrespective of whether the principal of
any Investor Interests 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 5.3,
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 Investor Interests 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 trustee, and their
respective agents, attorneys and counsel, and for reimbursement of all expenses
and liabilities incurred, and all advances made, by the Indenture Trustee and
each predecessor trustee, except as a result of negligence or bad faith) and of
the Interestholders allowed in such Proceedings;

 

(ii)                                  unless
prohibited by applicable law and regulations, to vote on behalf of the Holders
of Investor Interests 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
Interestholders 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 Holders
of Investor Interests 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 of
such Interestholders to make payments to the Indenture Trustee, and, if the
Indenture Trustee shall consent to the making of payments directly to such
Interestholders, to pay to the Indenture Trustee such amounts as shall be
sufficient to cover reasonable compensation to the Indenture Trustee, each
predecessor 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 trustee except as a result of negligence
or bad faith.

 

(f)                                    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
Interestholder any plan of

 

28

 

reorganization, arrangement, adjustment or composition
affecting the Investor Interests or the rights of any Holder thereof or to
authorize the Indenture Trustee to vote in respect of the claim of any
Interestholder in any such proceeding except, as aforesaid, to vote for the
election of a trustee in bankruptcy or similar Person.

 

(g)                                 All
rights of action and of asserting claims under this Indenture, or under any of
the Investor Interests, may be enforced by the Indenture Trustee without the
possession of any of the Investor Interests or the production thereof in any
trial or other Proceedings relative thereto, and any such 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
trustee and their respective agents and attorneys, shall be for the ratable
benefit of the Interestholders.

 

(h)                                 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 shall be a party), the Indenture Trustee shall be held to
represent all the Interestholders, and it shall not be necessary to make any
Interestholder a party to any such Proceedings.

 

SECTION 5.4  Remedies; Priorities.    (a) If an Event of Default shall have
occurred and be continuing and the Investor Interests have been accelerated
under Section 5.2(a), the Indenture Trustee may (but shall not be
required to) do one or more of the following (subject to Section 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 Investor Interests or under this
Indenture with respect thereto, whether by declaration of acceleration or
otherwise, enforce any judgment obtained, and collect from the Issuer and any
other obligor upon such Investor Interests monies adjudged due;

 

(ii)                                  institute
Proceedings from time to time for the complete or partial foreclosure of this
Indenture with respect to the Trust Estate;

 

(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
Interestholders; and

 

(iv)                              sell
the portions of the related Trust Estate allocated to that Series, 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 or elect to have the
Issuer maintain possession of the Trust Estate, by randomly selecting
Receivables included therein, and continue to apply Collections on such
Receivables as if there had been no declaration of acceleration (although the
Early Amortization Period commenced by that declaration shall continue unless
the declaration is rescinded);

 

provided,
however, that the Indenture Trustee may not sell or otherwise liquidate
an interest in the Trust Estate following an Event of Default and acceleration
of the Investor Interests, unless (A) the Control Investors of the
affected Series consent thereto, (B) the proceeds of such sale or
liquidation distributable to the Interestholders and the Residual
Interestholder are sufficient to discharge in full the principal of and the
accrued interest on the Investor Interests of the affected Series as of
the date of such sale or liquidation or (C) (i) there has been an
Event of Default under Section 5.1(a), (b) or (c) or
otherwise arising from a failure to make a required payment of principal on any
Investor Interests and (ii) the Indenture Trustee determines that the
Trust Estate

 

29

 

is reasonably
unlikely to provide sufficient funds for the payment of principal of and
interest on the Investor Interests as and when they would have become due if
the Investor Interests had not been declared due and payable.  In determining such sufficiency or
insufficiency with respect to clauses (B) and (C), 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.

 

(b)                                 If
the Indenture Trustee collects any money or property pursuant to this Article V,
it shall pay out the money or property in the following order:

 

FIRST:  to the Indenture Trustee for amounts due
under Section 6.7; and

 

SECOND:  unless otherwise specified in the applicable Series Supplement,
to the Collection Account for distribution pursuant to Section 4.2(d) of
the Sale and Servicing Agreement, with such amounts being deemed to be
Principal Collections and Non-Principal Collections in the same proportion as
(x) the outstanding principal balance of the Investor Interests bears to (y)
the sum of the accrued and unpaid interest on the Investor Interests and other
fees and expenses payable in connection therewith under the applicable Series Supplement.  Repayment in full of the accrued interest on
and unpaid principal balance of the Investor Interests of that Series will
be made prior to any further distribution on the subordinated portion of the
Residual Interest.

 

(c)                                  Notwithstanding
the foregoing, if an Event of Default shall have occurred and be continuing and
the Investor Interests of any Series shall have been accelerated under Section 5.2(a) and
the Final Payment Date for such Series of Investor Interests shall have
occurred, on the first Payment Date thereafter, the Indenture Trustee will sell
or cause to be sold on such Payment Date such Principal Receivables (or
interests therein) in the amount and manner described in the related Series Supplement;
provided, however, that in no event shall the amount of Principal
Receivables sold exceed the Series Allocation Percentage for that Series (for
the Collection Period in which such Payment Date occurs) of Principal
Receivables on such Payment Date.  The
proceeds from such sale shall be immediately deposited into the applicable such
Trust Account as shall be specified in the related Series Supplement and
shall be allocated and distributed to the Interestholders of such Series in
accordance with the terms of the related Series Supplement.

 

SECTION 5.5  Optional Preservation of the Trust Estate.  If the Investor Interests have been declared
to be due and payable under Section 5.2 following an Event of
Default and such declaration and its consequences have not been rescinded and
annulled, the Indenture Trustee may, but need not, elect to take and maintain
possession of the Trust Estate.  It is
the desire of the parties hereto and the Interestholders that there be at all
times sufficient funds for the payment of principal of and interest on the
Investor Interests, and the Indenture Trustee shall take such desire into
account when determining whether or not to take and maintain possession of the
Trust Estate.  In determining whether to
take and maintain possession of the Trust Estate, 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.

 

SECTION 5.6  Limitation of Suits.  No Interestholder 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:

 

(a)                                  such
Holder has previously given written notice to the Indenture Trustee of a
continuing Event of Default;

 

30

 

(b)                                 the
Holders of not less than 25% of the Outstanding Amount of the Investor
Interests for any Series have made written request to the Indenture
Trustee to institute such Proceeding in respect of such Event of Default in its
own name as Indenture Trustee hereunder;

 

(c)                                  such
Holder or Holders have offered to the Indenture Trustee reasonable indemnity
against the costs, expenses and liabilities that may be incurred in complying
with such request;

 

(d)                                 the
Indenture Trustee has failed to institute such Proceedings for 60 days after
its receipt of such notice, request and offer of indemnity; and

 

(e)                                  no
direction inconsistent with such written request has been given to the
Indenture Trustee during such 60-day period by the Control Investors of
each affected Series.

 

It is understood
and intended that no one or more Interestholders shall have any right in any
manner whatsoever by virtue of, or by availing of, any provision of this
Indenture to affect, disturb or prejudice the rights of any other
Interestholders or to obtain or to seek to obtain priority or preference over
any other Holders or to enforce any right under this Indenture, except in the
manner herein provided.

 

If the Indenture
Trustee shall receive conflicting or inconsistent requests and indemnity from
two or more groups of Interestholders pursuant to this Section 5.6,
each representing less than a majority of the Outstanding Amount of Investor
Interests for the relevant Series, the Indenture Trustee shall act at the
direction of the group representing the greater percentage of the Outstanding
Amount of Investor Interests and if there is no such group then in its sole
discretion may determine what action, if any, shall be taken, notwithstanding
any other provisions of this Indenture.

 

SECTION 5.7  Unconditional Rights of Interestholders To
Receive Principal and Interest. 
Notwithstanding any other provisions in this Indenture, the Holder of
any Investor Interest shall have the right, which is absolute and
unconditional, to receive payment of the principal of and interest on such
Investor Interest on or after the respective due dates thereof expressed in
such Investor Interest or in this Indenture (or, in the case of redemption, if
applicable, 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 Holder.

 

SECTION 5.8  Restoration of Rights and Remedies.  If the Indenture Trustee or any
Interestholder 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
Interestholder, then and in every such case the Issuer, the Indenture Trustee
and the Interestholders shall, subject to any determination in such Proceeding,
be restored severally and to their respective former positions hereunder, and
thereafter all rights and remedies of the Indenture Trustee and the
Interestholders 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 Interestholders 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 Investor Interest to exercise any right or remedy accruing
upon any Default or Event

 

31

 

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
Interestholders may be exercised from time to time, and as often as may be
deemed expedient, by the Indenture Trustee or by the Interestholders, as the case
may be.

 

SECTION 5.11  Control by Interestholders.  The Control Investors for each Series shall,
subject to provision being made for indemnification against costs, expenses and
liabilities in a form satisfactory to the Indenture Trustee, have the right to
direct in writing the time, method and place of conducting any Proceeding for
any remedy available to the Indenture Trustee with respect to the Investor
Interests or exercising any trust or power conferred on the Indenture Trustee; provided,
however, 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 Section 5.4, any direction to the Indenture
Trustee to sell or liquidate the Trust Estate shall be by the Holders of Investor
Interests representing not less than 100% of the Outstanding Investor
Interests;

 

(c)                                  if
the conditions set forth in Section 5.4 have been satisfied and the
Indenture Trustee elects to retain the Trust Estate pursuant to Section 5.5,
then any direction to the Indenture Trustee by Holders of Investor Interests
representing less than 100% of the Outstanding Investor Interests to sell or
liquidate the Trust Estate shall be of no force and effect; and

 

(d)                                 the
Indenture Trustee may take any other action deemed proper by the Indenture
Trustee that is not inconsistent with such direction;

 

provided,
however, that, subject to Section 6.1, the Indenture Trustee
need not take any action that it determines might cause it to incur any
liability (y) with respect to which the Indenture Trustee shall have reasonable
grounds to believe that adequate indemnity against such liability is not
assured to it and (z) which might materially adversely affect the rights of any
Interestholders not consenting to such action.

 

SECTION 5.12  Waiver of Past Defaults.

 

(a)                                  Prior
to the acceleration of the maturity of any Series of Notes pursuant to Section 5.2,
and subject to Section 5.2(b), the Control Investors of any
affected Series may waive any past Default or Event of Default with respect
to such Series and its consequences except a Default or an Event of
Default: (a) in payment of principal of or interest on any of the Notes of
such Series or (b) in respect of a covenant or provision hereof that
cannot be modified or amended without the consent of each Interestholder of
such Series. In the case of any such waiver, the Issuer, the Indenture Trustee
and the Interestholders of the affected Series 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.

 

(b)                                 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 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
Holder of any Investor Interest by such Holder’s acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, in any
Proceeding for the enforcement of any right or remedy under this Indenture, or
in any Proceeding against the Indenture Trustee for any action taken, suffered
or omitted by

 

32

 

it as Trustee, the filing by any party litigant in
such Proceeding of an undertaking to pay the costs of such Proceeding, and that
such court may in its discretion assess reasonable costs, including reasonable
attorneys’ fees and expenses, against any party litigant in such Proceeding,
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 5.13
shall not apply to: (a) any Proceeding instituted by the Indenture
Trustee; (b) any Proceeding instituted by any Interestholder, or group of
Interestholders, in each case holding in the aggregate more than 10% of the
Outstanding Amount of the Investor Interests; or (c) any Proceeding
instituted by any Interestholder for the enforcement of the payment of
principal of or interest on any Investor Interest on or after the respective
due dates expressed in such Investor Interest 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 shall 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
adversely affect the covenants or the performance of this Indenture.  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 shall not hinder, delay or impede the execution of
any power herein granted to the Indenture Trustee, but shall suffer and permit
the execution of every such power as though no such law had been enacted.

 

SECTION 5.15  Action on Investor Interests.  The Indenture Trustee’s right to seek and
recover judgment on the Investor Interests 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 Interestholders 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) hereof.

 

SECTION 5.16  Performance and Enforcement of Certain
Obligations.

 

(a)                                  Promptly
following a request from the Indenture Trustee to do so and at the Issuer’s
expense, the Issuer agrees to take all such lawful action as the Indenture
Trustee may request to compel or secure the performance and observance by the
Seller and the Servicer of their respective obligations to the Issuer under or
in connection with the Sale and Servicing Agreement, the Receivables Purchase
Agreement and the Receivables Transfer Agreements, by TFC of its obligations
under or in connection with the Receivables Purchase Agreement in accordance
with the terms thereof or by an Originator of its obligations under or in
connection with the related Receivables Transfer Agreement 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 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 or the Servicer 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.

 

(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 or by telephone
(confirmed in writing promptly thereafter)) of the Control Investors of any
outstanding Series 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, including the right or
power to take any action to compel or secure performance or observance by the
Seller or the Servicer of each of their obligations to the Issuer

 

33

 

thereunder and to give any consent, request, notice,
direction, approval, extension or waiver under the Sale and Servicing
Agreement, and any right of the Issuer to take such action shall be suspended.

 

(c)                                  Promptly
following a request from the Indenture Trustee to do so and at the Issuer’s
expense, the Issuer agrees to take all such lawful action as the Indenture
Trustee may request to compel or secure the performance and observance by TFC
and the Servicer of their obligations to the Seller under or in connection with
the Receivables Purchase Agreement in accordance with the terms thereof, and to
secure the performance and observance by an Originator of its obligations to
TFC under or in connection with a Receivables Transfer Agreement, and to
exercise any and all rights, remedies, powers and privileges lawfully available
to the Issuer under or in connection with the Receivables Purchase Agreement
and the Receivables Transfer Agreements to the extent and in the manner
directed by the Indenture Trustee, including the transmission of notices of
default thereunder and the institution of legal or administrative actions or
proceedings to compel or secure performance by the Seller and TFC of each of
their obligations under the Receivables Purchase Agreement and of the
applicable Originator and TFC of each of their obligations under the related
Receivables Transfer Agreement.

 

(d)                                 If
an Event of Default has occurred and is continuing, the Indenture Trustee may,
and, at the direction (which direction shall be in writing or by telephone
(confirmed in writing promptly thereafter)) of the Control Investors of any
outstanding Series shall, exercise all rights, remedies, powers,
privileges and claims of (i) the Seller against TFC under or in connection
with the Receivables Purchase Agreement, including the right or power to take
any action to compel or secure performance or observance by TFC of its
obligations to the Seller thereunder and to give any consent, request, notice,
direction, approval, extension or waiver under the Receivables Purchase
Agreement, and any right of the Seller to take such action shall be suspended
and (ii) TFC against an Originator under or in connection with the related
Receivables Transfer Agreement, including the right or power to take any action
to compel or secure performance or observance by the related Originator of its
obligations to TFC thereunder and to give any consent, request, notice,
direction, approval, extension or waiver under the related Receivables Transfer
Agreement, and the right of TFC to take such action shall be suspended.

 

SECTION 5.17  Early Amortization Events.  An Early Amortization Event for any Series of
Investor Interests shall be any of the events so defined in the Series Supplement
relating to a Series of Investor Interests, as well as the following
events:

 

(a)                                  the
Seller shall fail to convey Receivables in Additional Accounts to the Issuer
within five Business Days after the day on which it is required to convey such
Receivables if the Net Pool Balance is less than the Required Net Pool Balance
as of the last day of any Collection Period;

 

(b)                                 the
Seller, the Servicer, the Issuer or any Material Originator shall file a
petition for relief or a voluntary case under any applicable federal or state
bankruptcy, insolvency or other similar law now or hereafter in effect, or
shall consent to the entry of an order for relief in an involuntary case under
any such law, or shall consent to the appointment of or taking possession by a
receiver, liquidator, assignee, custodian, trustee, sequestrator or similar
official for such Person or for any substantial part of its property, or shall
make a general assignment for the benefit of creditors, or shall fail generally
or admit in writing its inability to pay its debts as such debts become due, or
shall take action in furtherance of any of the foregoing.

 

(c)                                  there
shall have been filed a decree or order for relief by a court having
jurisdiction in the premises in respect of the Seller, the Servicer, the Issuer
or any Material Originator or any substantial part of the property of either
such Person in an involuntary case under any applicable federal or state
bankruptcy, insolvency or other similar law now or hereafter

 

34

 

in effect and such order shall have continued undischarged or unstayed
for a period of 60 days; or there shall have been entered a decree or order by
a court having jurisdiction in the premises approving as properly filed a
petition seeking reorganization, arrangement, adjustment, or composition of the
Seller, the Servicer, the Issuer or any Material Originator under any other
similar applicable federal law, and such decree or order shall have continued
undischarged or unstayed for a period of 60 days; or a decree or order of a
court having jurisdiction in the premises for the appointment of a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official for
such Person or for any substantial part of its property, or ordering the
winding-up or liquidation of such Person’s affairs, and such decree or order
shall remain unstayed and in effect for a period of 60 consecutive days;

 

(d)                                 failure
on the part of any Transaction Party (i) to make any payment or deposit
required by the applicable Supplement or the Sale and Servicing Agreement
including any Transfer Deposit Amount or Adjustment Payment, on or before the
date occurring five Business Days after the date such payment or deposit is
required to be made therein; or (ii) with respect to any Series, to
deliver a Payment Date Statement on the date required under the applicable Series Supplement
(or within the applicable grace period which will not exceed five Business
Days); or (iii) to observe or perform in any material respect any other
covenants or agreements set forth in the applicable Supplement or the Sale and
Servicing Agreement, which failure continues unremedied for a period of 60 days
after written notice of such failure; provided, however, that an
Early Amortization Event pursuant to this clause (iii) shall not be deemed
to have occurred if the Seller shall have repurchased the related Receivables
or, if applicable, all of the Receivables during such period in accordance with
the provisions of this Agreement; or (iv) duly to observe or perform in
any material respect any other covenants or agreements of the Transaction
Parties set forth in the applicable Supplement or the Sale and Servicing
Agreement, which failure in the case of this clause (iv) has a material
adverse effect on the Interestholders and continues unremedied for a period of
60 days after the date on which written notice of such failure, requiring the
same to be remedied, shall have been given to the Seller and the Servicer by
the Indenture Trustee;

 

(e)                                  any
representation or warranty made by an Originator in the applicable Receivables
Transfer Agreement, by TFC in the Receivables Purchase Agreement or by the
Servicer in the Sale and Servicing Agreement or any information required to be
given by the Servicer to the Indenture Trustee to identify the Accounts proves
to have been incorrect in any material respect when made and continues to be
incorrect in any material respect for a period of 60 days after written notice
and as a result the interests of any Series of Investor Interestholders
are materially and adversely affected; provided,
however, that an Early Amortization Event
shall not be deemed to occur hereunder if the Seller or the Servicer has
repurchased or purchased, as applicable, the related Conveyed Receivables or
all such Conveyed Receivables in such Account, if applicable, during such 60
day period in accordance with the provisions of the Sale and Servicing
Agreement; or

 

(f)                                    the
Issuer or the Seller shall become an “investment company” within the meaning of
the Investment Company Act.

 

Immediately upon
the occurrence of any event described above or in the related Series Supplement
for a Series of Investor Interests, subject to applicable law, and after
the applicable grace period, if any, an amortization event (an “Early
Amortization Event”) shall occur without any notice or other action on the
part of any party, as set forth in the Series Supplement and solely with
respect to the affected Series.

 

35

 

ARTICLE VI

THE INDENTURE TRUSTEE

 

SECTION 6.1  Duties of Indenture Trustee.

 

(a)                                  If
an Event of Default has occurred and is continuing of which a Responsible
Officer of the Indenture Trustee has actual knowledge, the Indenture Trustee
shall exercise the rights and powers vested in it by this Indenture and 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, including continuing to hold the Trust Estate and receive Collections
on the Receivables included therein as provided in the Sale and Servicing
Agreement.

 

(b)                                 Except
during the continuance of an Event of Default of which a Responsible Officer of
the Indenture Trustee has actual knowledge:

 

(i)                                     the
Indenture Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture and the Sale and Servicing Agreement
and no implied covenants or obligations shall be read into this Indenture or
the Sale and Servicing Agreement against the Indenture Trustee; and

 

(ii)                                  in
the absence of bad faith or negligence 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 the face value of the certificates, reports,
resolutions, documents, orders, opinions or other instruments furnished to the
Indenture Trustee and conforming to the requirements of this Indenture; provided,
however, that the Indenture Trustee shall not be responsible for the
accuracy or content of any such resolution, certificate, statement, opinion,
report, document, order or other instrument; however, the Indenture Trustee
shall examine the certificates and opinions to determine whether or not they
conform to the requirements of this Indenture. 
If any such instrument is found not to conform in any material respect
to the requirements of this Indenture, the Indenture Trustee shall notify the
Interestholders of such instrument in the event that the Indenture Trustee, after
so requesting, does not receive a satisfactorily corrected instrument.

 

(c)                                  The
Indenture Trustee may 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 6.1;

 

(ii)                                  the
Indenture Trustee shall not be liable for any error of judgment made in good
faith 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 the terms
of this Indenture or any other Basic Document.

 

(d)                                 Every
provision of this Indenture that in any way relates to the Indenture Trustee is
subject to paragraphs (a), (b), (c) and (g) of this Section 6.1.

 

36

 

(e)                                  The
Indenture Trustee shall not be liable for indebtedness evidenced by or arising
under any of the Basic Documents, including principal of or interest on the
Investor Interests, or 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.  The Indenture
Trustee shall be under no liability for interest on any monies received by it
hereunder except as otherwise agreed upon in writing by the Indenture Trustee
and the Issuer.

 

(g)                                 No
provision of this Indenture shall require the Indenture Trustee to advance,
expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties hereunder 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 adequate indemnity against such risk or liability is not
reasonably assured to it.

 

(h)                                 Every
provision of this Indenture 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 6.1 and, if the Indenture is or is
required to be qualified under this Trust Indenture Act, to the provisions of
the Trust Indenture Act.

 

(i)                                     Except
as provided in Section 7.2 of the Sale and Servicing Agreement, the
Indenture Trustee shall not be required to perform, or be responsible for the
manner of performance of, any of the obligations of the Servicer or any other
party under the Sale and Servicing Agreement.

 

(j)                                     The
Indenture Trustee shall have no duty (A) to see to any recording, filing,
or depositing of this Indenture or any agreement referred to herein or any
financing statement or continuation statement evidencing a security interest,
or to see to the maintenance of any such recording or filing or depositing or
to any rerecording, refiling or redepositing of any thereof, (B) to see to
any insurance, or (C) to see to the payment or discharge of any tax,
assessment, or other governmental charge or any Lien or encumbrance of any kind
owing with respect to, assessed or levied against, any part of the Trust
Estate.

 

(k)                                  For
purposes of this Section 6.1, the Indenture Trustee, or a
Responsible Officer thereof, shall be charged with actual knowledge of any
default or an Event of Default if a Responsible Officer actually knows of such
default or Event of Default or the Indenture Trustee receives written notice of
such default or Event of Default from the Issuer, the Servicer or
Interestholders owning Investor Interests aggregating not less than 10% of the
Outstanding Amount of the Investor Interests. 
Notwithstanding the foregoing, the Indenture Trustee shall not be
required to take notice and in the absence of such actual notice and knowledge,
the Indenture Trustee may conclusively assume that there is no such default or
Event of Default.

 

(l)                                     Notwithstanding
any term herein, or in any Series Supplement, to the contrary, neither the
Indenture Trustee nor the Registrar shall be responsible or liable hereunder
for ascertaining whether any transfer of a Investor Interest complies with, and
shall not otherwise be under a duty hereunder to monitor, determine or cause
compliance with, the Securities Act, the Investment Company Act, the Code or
ERISA, or any other federal or state securities laws that may be applicable
(or, in any case, any particular rule or regulation promulgated
thereunder); provided, however, that if a specific transfer
certificate or Opinion of Counsel is expressly required by the terms of this
Indenture or by the terms of the applicable Series Supplement, to be
delivered to, the Indenture Trustee or Registrar, the Indenture Trustee or
Registrar, as the case may be, shall be under a duty to receive such
certificate or Opinion of Counsel prior to registration of such transfer and to
examine the same to determine whether it

 

37

 

conforms on its face to the applicable requirements of
this Indenture or the applicable requirements of such Series Supplement
(as the case may be), and the Indenture Trustee or Registrar, as the case may
be, shall promptly notify the party delivering the same if it determines that
such certificate or Opinion of Counsel does not conform to such requirements.

 

SECTION 6.2  Rights of Indenture Trustee.

 

(a)                                  The
Indenture Trustee may conclusively rely on the face value of 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.

 

(b)                                 Before
the Indenture Trustee acts or refrains from acting, it may require an Officer’s
Certificate or an Opinion of Counsel from the appropriate party.  The Indenture Trustee shall not be liable for
any action it takes or omits to take in good faith in reliance on an Officer’s
Certificate or Opinion of Counsel from the appropriate party.  The right of the Indenture Trustee to perform
any discretionary act enumerated in this Indenture or in any Basic Document
shall not be construed as a duty of the Indenture Trustee and the Indenture
Trustee shall not be answerable for other than its negligence or willful
misconduct in the performance of such discretionary act.

 

(c)                                  The
Indenture Trustee may execute any of the trusts or powers hereunder or perform
any duties hereunder 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 any such agent, attorney or custodian
appointed by the Indenture Trustee with due care.

 

(d)                                 The
Indenture Trustee shall not be liable for any action it takes or omits to take
in good faith that it believes to be authorized or within its rights or powers;
provided 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 written advice or opinion
of counsel with respect to legal matters relating to this Indenture and the
Investor Interests 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)                                    In
the event that the Indenture Trustee is also acting as Paying Agent, Registrar
or collateral agent, the rights and protections afforded to the Indenture
Trustee pursuant to this Article VI shall be afforded to such
Paying Agent, Registrar or collateral agent.

 

(g)                                 The
Indenture Trustee shall be under no obligation to exercise any of the trusts or
powers vested in it by this Indenture or to institute, conduct or defend any
litigation hereunder or in relation hereto at the request, order or direction
of any of the Interestholders, pursuant to the provisions of this Indenture,
unless such Interestholders shall have offered to the Indenture Trustee
reasonable security or indemnity against the costs, expenses and liabilities
which may be incurred therein or thereby.

 

(h)                                 The
right of the Indenture Trustee to perform any discretionary act enumerated in
this Indenture shall not be construed as a duty, and the Indenture Trustee
shall not be answerable for other than its negligence or willful misconduct in
the performance of such act.

 

38

 

(i)                                     The
Indenture Trustee shall not be required to give any bond or surety in respect
of the powers granted hereunder.

 

(j)                                     The
Indenture Trustee shall not be bound to make any investigation into the facts
or matters stated in any resolution, certificate, instrument, opinion, report,
notice, request, direction, consent, order, or other paper or document, but the
Indenture Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the
Indenture Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books and records of the
Issuer, personally, or by agent or attorney at the sole cost of the Servicer
and shall incur no liability or additional liability of any kind by reason of
such inquiry or investigation.

 

(k)                                  The
Indenture Trustee may execute any of the trusts or powers hereunder or perform
any duties hereunder either directly or by or through agents, attorneys or
custodians, and the Indenture Trustee shall not be liable for any misconduct of
negligence on the part of any such agent, attorney or custodian appointed by
the Indenture Trustee with due care.

 

SECTION 6.3  Individual Rights of Indenture Trustee.  The Indenture Trustee may hold Investor
Interests solely in a capacity as a fiduciary for another Person but may
otherwise deal with the Issuer, the Servicer or any of their respective
Affiliates with the same rights it would have if it were not Indenture Trustee;
provided, however, that the Indenture Trustee shall comply with Sections
6.11 and 6.12.  Any Paying
Agent, Registrar, co-registrar or co-paying agent may do the same with like
rights.

 

SECTION 6.4  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, the Trust Estate or the Investor Interests, it shall not be
accountable for the Issuer’s use of the proceeds from the Investor Interests,
and it shall not be responsible for any statement of the Issuer in the
Indenture, in any Basic Document or in any document issued in connection with
the sale of the Investor Interests or in the Investor Interests 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 actually known to a Responsible Officer of the Indenture Trustee, the
Indenture Trustee shall mail to each Interestholder notice of the Default
within 15 days after such Default occurs.

 

SECTION 6.6  Reports by Indenture Trustee to Holders.  The Indenture Trustee shall deliver to each
Interestholder such information as may be required to enable such holder to
prepare its federal and state income tax returns as and to the extent provided
in Article VII.

 

SECTION 6.7  Compensation; Indemnity.

 

(a)                                  The
Issuer shall, or shall cause the Servicer to, pay to the Indenture Trustee from
time to time reasonable compensation for its services. The Indenture Trustee’s
compensation shall not be limited by any law on compensation of a trustee of an
express trust. The Issuer shall, or shall cause the Servicer to, reimburse the
Indenture Trustee for all reasonable out-of-pocket expenses incurred or made by
it, including costs of collection, in addition to the compensation for its
services. Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Indenture Trustee’s agents, counsel,
accountants and experts. The Issuer shall, or shall cause the Servicer to,
indemnify the Indenture Trustee and its officers, directors, employees and
agents against any and all loss, liability or expense (including attorneys’
fees and reasonable expenses) incurred by them in connection with the
administration of this trust and the performance of its duties hereunder or
under any other Basic Document. The Indenture Trustee shall notify the Issuer
and the Servicer promptly of any claim for which

 

39

 

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 the claim; provided, however, that  the Indenture Trustee may elect to have
separate counsel and the Issuer shall, or shall cause the Servicer to, pay the
fees and expenses of such counsel. Neither the Issuer nor the Servicer need
reimburse any expense or indemnify against any loss, liability or expense
incurred by the Indenture Trustee through the Indenture Trustee’s own willful
misconduct, negligence or bad faith.

 

(b)                                 The
Issuer’s payment obligations to the Indenture Trustee pursuant to this Section 6.7
shall survive the discharge of this Indenture or the earlier resignation or
removal of the Indenture Trustee. When the Indenture Trustee incurs expenses
after the occurrence of a Default specified in Section 5.1(iv) or
(v), the expenses are intended to constitute expenses of administration
under Title 11 of the United States Code or any other applicable Federal or
State bankruptcy, insolvency or similar law.

 

(c)                                  Notwithstanding
the foregoing, the Issuer shall not be obligated to pay any amount under this Section 6.7
unless and until the Issuer has funds available to pay any such amount.  Any such amount that the Issuer does not pay
pursuant to the operation of the preceding sentence shall not constitute a
claim (as defined in §101 of Title 11 of the United States Code, as amended)
against or corporate obligation of the Issuer for any such insufficiency unless
and until the Issuer has funds available to pay any such amount.

 

SECTION 6.8  Replacement of Indenture Trustee.  No resignation or removal of the Indenture
Trustee and no appointment of a successor Indenture Trustee shall become
effective until the acceptance of appointment by the successor Indenture
Trustee pursuant to this Section 6.8.  The Indenture Trustee may resign at any time
by giving 60 days’ notice to the Issuer and each Rating Agency.  The Control Investors of any Series may
remove the Indenture Trustee by so notifying the Indenture Trustee and may
appoint a successor Indenture Trustee. 
The Issuer shall remove the Indenture Trustee if:

 

(i)                                     the
Indenture Trustee fails to comply with Section 6.11;

 

(ii)                                  the
Indenture Trustee is adjudged a bankrupt or insolvent;

 

(iii)                               a receiver or other
public officer takes charge of the Indenture Trustee or its property;

 

(iv)                              the
Indenture Trustee otherwise becomes incapable of acting; or

 

(v)                                 the
Indenture Trustee breaches any representation, warranty or covenant made by it
under any Basic Document.

 

If the Indenture Trustee
resigns or is removed or if a vacancy exists in the office of 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, subject to Section 6.11.

 

A successor
Indenture Trustee shall deliver a written acceptance of its appointment to the
retiring Indenture Trustee, the Servicer and to the Issuer.  Thereupon the resignation or removal of the
retiring Indenture Trustee shall become effective, and the successor Indenture
Trustee shall have all of the rights, powers and duties of the Indenture
Trustee under this Indenture.  The
retiring Indenture Trustee shall be paid all amounts owed to it upon its resignation
or removal.  The successor Indenture
Trustee shall mail a notice of its succession to Interestholders.  The retiring Indenture Trustee shall promptly

 

40

 

transfer all property held by it as Indenture Trustee to the successor
Indenture Trustee.  The retiring
Indenture Trustee shall not be liable for the acts or omissions of any
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 Control Investors of any Series may petition any court of
competent jurisdiction for the appointment of a successor Indenture Trustee.

 

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

 

Notwithstanding
the replacement of the Indenture Trustee pursuant to this Section, the Issuer’s
and the Servicer’s obligations under Section 6.7 shall continue for
the benefit of the retiring Indenture Trustee.

 

SECTION 6.9  Successor Indenture Trustee by Merger.

 

(a)                                  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 qualified and eligible
under Section 6.11.  The
Indenture Trustee shall provide the Rating Agencies notice of any such
transaction.

 

(b)                                 In
case at the time such successor or successors to the Indenture Trustee by
merger, conversion or consolidation shall succeed to the trusts created by this
Indenture any of the Investor Interests 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
Investor Interests so authenticated; and in case at that time any of the
Investor Interests shall not have been authenticated, any successor to the
Indenture Trustee may authenticate such Investor Interests either in the name of
any predecessor hereunder or in the name of the successor to the Indenture
Trustee; and in all such cases such certificates shall have the full force that
it is anywhere in the Investor Interests or in this Indenture provided that the
certificate of the Indenture Trustee shall have.

 

SECTION 6.10  Appointment of Co-Indenture Trustee or
Separate Indenture Trustee.

 

(a)                                  Notwithstanding
any other provisions of this Indenture, at any time, for the purpose of meeting
any legal requirement of any jurisdiction in which the Issuer or any Dealer may
at the time be located or otherwise be deemed to be doing business, the
Indenture Trustee shall have the power and may execute and deliver all
instruments to appoint one or more Persons approved by the Indenture Trustee to
act as a co-trustee or co-trustees, jointly with the Indenture Trustee, or
separate indenture 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
Interestholders and (only to the extent expressly provided herein) the Residual
Interestholder, such title to the Collateral, or any part hereof, and, subject
to the other provisions of this Section 6.10, such powers, duties,
obligations, rights and trusts as the Indenture Trustee may consider necessary
or desirable.  No co-indenture trustee or
separate indenture trustee hereunder shall be required to meet the terms of
eligibility as a successor trustee under Section 6.11 and no notice
to Interestholders of the appointment of any co-indenture trustee or separate
indenture trustee shall be required under Section 6.8.

 

41

 

(b)                                 Every
separate indenture trustee and co-indenture 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
understood that such separate indenture trustee or co-indenture 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
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 Indenture Trustee;

 

(ii)                                  no
indenture trustee hereunder shall be personally liable by reason of any act or
omission of any other indenture trustee hereunder; and

 

(iii)                               the Indenture Trustee
may at any time accept the resignation of or remove any separate indenture
trustee or co-indenture trustee.

 

(c)                                  Any
notice, request or other writing given to the Indenture Trustee shall be deemed
to have been given to each of the then separate indenture trustees and
co-indenture 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 indenture trustee and
co-indenture 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.

 

(d)                                 Any
separate indenture trustee or co-indenture trustee may at any time appoint the
Indenture Trustee as 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 indenture trustee or
co-indenture 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 indenture trustee.

 

SECTION 6.11  Indenture Trustee Required; Eligibility.

 

(a)                                  The
Issuer agrees, for the benefit of the Interestholders, that there shall at all
times be an indenture trustee hereunder which shall be a bank (within the
meaning of Section 2(a)(5) of the 1940 Act) organized and doing
business under the laws of the United States or any State thereof, authorized
under such laws to exercise corporate trust powers, having aggregate capital,
surplus and undivided profits of at least $50,000,000, be subject to
supervision or examination by federal or state authority, having a senior
unsecured long-term debt rating of “Baa3” or better by Moody’s, if rated by
Moody’s, or “BBB” or better by Standard & Poor’s, if rated by Standard &
Poor’s (or, if not rated by Moody’s or Standard & Poor’s, a comparable
rating acceptable to the Rating Agencies by another statistical rating agency,
as evidenced by written confirmation from each Rating Agency that such bank’s
acting as Indenture Trustee would not in and of itself result in a
qualification, downgrade or withdrawal of any of the then-current ratings
assigned thereby to the Investor Interests of any Class).  If such bank

 

42

 

published reports of conditions at least annually,
pursuant to law or to the requirements of said supervising or examining
authority, then for the purposes of this Section 6.11, the combined
capital, surplus and undivided profits of such bank shall be deemed to be its
combined capital, surplus and undivided profits as set forth in its most recent
report of condition so published.  The
Indenture Trustee shall in no event be an Affiliate of the Issuer or the
Servicer or an Affiliate of any Person involved in the organization or
operation of the Issuer or be directly or indirectly controlled by the Issuer
unless the Rating Agency Condition is satisfied.  If at any time the Indenture Trustee shall
cease to be eligible in accordance with the provisions of this Section, it
shall resign immediately in the manner and with the effect specified in Section 6.08
of this Indenture.

 

(b)                                 In
the case of the appointment hereunder of a successor Indenture Trustee with
respect to any Class of Investor Interests pursuant to this Section 6.11,
the Issuer, the retiring Indenture Trustee and the successor Indenture Trustee with
respect to such Class of Investor Interests shall execute and deliver an
indenture supplemental hereto wherein each successor Indenture Trustee shall
accept such appointment and which (i) shall contain such provisions as
shall be necessary or desirable to transfer and confirm to, and to vest in, the
successor Indenture Trustee all of the rights, powers, trusts and duties of the
retiring Indenture Trustee with respect to the Investor Interests of the Class to
which the appointment of such successor Indenture Trustee relates, (ii) if
the retiring Indenture Trustee is not retiring with respect to all Classes of
Investor Interests, shall contain such provisions as shall be deemed necessary
or desirable to confirm that all of the rights, powers, trusts and duties of
the retiring Indenture Trustee with respect to the Investor Interests of each Class as
to which the retiring Indenture Trustee is not retiring shall continue to be
vested in the Indenture Trustee and (iii) shall add to or change any of
the provisions of this Indenture as shall be necessary to provide for or
facilitate the administration of the trusts hereunder by more than one
Indenture Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Indenture Trustees co-trustees of
the same trust and that each such Indenture Trustee shall be a trustee of a
trust or trusts hereunder separate and apart from any trust or trusts hereunder
administered by any other such Indenture Trustee; and upon the removal of the
retiring Indenture Trustee shall become effective to the extent provided
herein.

 

SECTION 6.12  Waiver of Setoffs.  The Indenture Trustee hereby expressly waives
any and all rights of setoff that the Indenture Trustee may otherwise at any
time have under applicable law with respect to any Trust Account and agrees
that amounts in the Trust Accounts shall at all times be held and applied
solely in accordance with the provisions hereof and of the other Basic
Documents.

 

SECTION 6.13  Preferential Collection of Claims Against
Issuer.  The Indenture Trustee shall
comply with Section 311(a) of the Trust Indenture Act, excluding any
creditor relationship listed in Section 311(b) of the Trust Indenture
Act. A trustee who has resigned or been removed shall be subject to Section 311(a) of
the Trust Indenture Act to the extent indicated.

 

SECTION 6.14  Representations and Covenants of the
Indenture Trustee.

 

The Indenture
Trustee represents, warrants and covenants that:

 

(a)                                  The
Indenture Trustee is duly organized and validly existing under the laws of the
jurisdiction of its organization;

 

(b)                                 The
Indenture Trustee has full power and authority to deliver and perform this
Indenture and has taken all necessary action to authorize the execution,
delivery and performance by it of this Indenture and other Basic Documents to
which it is a party; and

 

43

 

(c)                                  Each
of this Indenture and other Basic Documents to which it is a party has been
duly executed and delivered by the Indenture Trustee and constitutes its legal,
valid and binding obligation in accordance with its terms.

 

SECTION 6.15  Custody of Collateral.  The Indenture Trustee shall hold such of the
Collateral (and any other  collateral
that may be Granted to the Indenture Trustee) as consists of instruments,
deposit accounts, negotiable documents, money, goods, letters of credit, and
advices of credit in the State of New York. 
The Indenture Trustee shall hold such of the Collateral as constitutes
investment property through a securities intermediary, which securities
intermediary shall agree with the Indenture Trustee that (a) such
investment property shall at all times be credited to a securities account of
the Indenture Trustee, (b) such securities intermediary shall treat the
Indenture Trustee as entitled to exercise the rights that comprise each
financial asset credited to such securities account, (c) all property
credited to such securities account shall be treated as a financial asset, (d) such
securities intermediary shall comply with entitlement orders originated by the
Indenture Trustee without the further consent of any other person or entity, (e) such
securities intermediary will not agree with any person other than the Indenture
Trustee to comply with entitlement orders originated by such other person, (f) such
securities accounts and the property credited thereto shall not be subject to
any Lien, security interest, right of set-off in favor of such securities
intermediary or anyone claiming through it (other than the Indenture Trustee),
and (g) such agreement shall be governed by the laws of the State of New
York.  Terms used in the preceding
sentence that are defined in the UCC and not otherwise defined herein shall
have the meaning set forth in the UCC. Except as permitted by this Section 6.15,
the Indenture Trustee shall not hold Collateral through an agent or a
nominee.  The Indenture Trustee, in its
capacity as depository bank or securities intermediary for any Trust Account,
agrees and acknowledges that the Indenture Trustee has “control” (pursuant to
the UCC as in effect from time to time in the State of New York) of amounts and
investments held in such Trust Accounts for all purposes of this Indenture and
the other Basic Documents.  For all
purposes of this Indenture and the other Basic Documents, the Indenture Trustee’s
“jurisdiction” in respect of matters governed by the UCC shall be the State of
New York.

 

ARTICLE VII

INTERESTHOLDERS’ LISTS AND REPORTS

 

SECTION 7.1  Issuer To Furnish Indenture Trustee Names
and Addresses of Interestholders. 
The Issuer shall furnish or cause to be furnished by the Servicer to the
Indenture Trustee (a) not more than five days before each date on which
payments are to be made, a list, in such form as the Indenture Trustee may
reasonably require, of the names and addresses of the Holders of Investor
Interests as of the close of business on the related Record Date, and (b) at
such other times as the Indenture Trustee may request in writing, within 14
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 the Indenture Trustee is the
Registrar, no such list shall be required to be furnished.

 

SECTION 7.2  Preservation of Information,
Communications to Interestholders.

 

(a)                                  The
Indenture Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of the Holders of Investor Interests
contained in the most recent list furnished to the Indenture Trustee as
provided in Section 7.1 and the names and addresses of Holders of
Investor Interests received by the Indenture Trustee in its capacity as
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.

 

(b)                                 Interestholders
may communicate pursuant to Section 312(b) of the Trust Indenture Act
with other Interestholders with respect to their rights under this Indenture or
under the Investor Interests.

 

44

 

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

 

SECTION 7.3  Reports by Issuer.

 

(a)                                  The
Issuer shall:

 

(i)                                     file
with the Indenture Trustee, within 15 days after the Issuer is required to file
the same with the Commission or any applicable state agencies, copies of the
annual reports and of the information, documents and other reports (or copies of
such portions of any of the foregoing as the Commission may from time to time
by rules and regulations prescribe) which the Issuer may be required to
file with the Commission pursuant to Section 13 or 15(d) of the
Exchange Act or any applicable state agencies pursuant to comparable
regulation;

 

(ii)                                  file
with the Indenture Trustee and the Commission or any applicable state agencies
in accordance with rules and regulations prescribed from time to time by
the Commission or any applicable state agencies such additional information,
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
Interestholders described in Section 313(c) of the Trust Indenture
Act) such summaries of any information, documents and reports required to be
filed by the Issuer pursuant to clauses (i) and (ii) of this Section 7.3(a) as
may be required by rules and regulations prescribed from time to time by
the Commission or any applicable state agencies.

 

(b)                                 Unless
the Issuer otherwise determines, the fiscal year of the Issuer shall end on December 31
of such year.

 

SECTION 7.4  Reports by Indenture Trustee.

 

(a)                                  If
required by Section 313(a) of the Trust Indenture Act, within 60 days
after March 30 of each year, the Indenture Trustee shall mail to each
Interestholder as required by Section 313(c) of the Trust Indenture
Act a brief report dated as of such date that complies with Section 313(a) of
the Trust Indenture Act.  If the
Indenture is or is required to be qualified under the Trust Indenture Act, the
Indenture Trustee also shall comply with Section 313 of the Trust
Indenture Act. A copy of any report delivered pursuant to this Section 7.4(a) shall,
at the time of its mailing to Interestholders, be filed by the Indenture
Trustee with the Commission, if required by applicable rules, and each stock
exchange, if any, on which the Investor Interests are listed. The Issuer shall
notify the Indenture Trustee in writing if and when the Investor Interests are
listed on any stock exchange.

 

The report
contemplated by this Section 7.4(a) shall include the
following information concerning the Indenture Trustee:

 

(i)                                     its
eligibility and qualifications to continue as Indenture Trustee under this
Indenture;

 

(ii)                                  any
amounts advanced by the Indenture Trustee under this Indenture;

 

45

 

(iii)                               the amount, interest
rate and maturity date of specified indebtedness owing by the Issuer to the
Indenture Trustee in its individual capacity;

 

(iv)                              the
property and funds physically held by the Indenture Trustee as trustee; and

 

(v)                                 any
action taken by the Indenture Trustee that has a material adverse effect on the
Interestholders and that has not been previously reported.

 

(b)                                 On
each Payment Date, the Indenture Trustee shall include with each payment to
each Interestholder a copy of the statement for the Collection Period or
Periods applicable to such Payment Date as required pursuant to Section 3.4
of the Sale and Servicing Agreement provided, the Servicer has provided the
Indenture Trustee with such information as required.

 

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.  The Indenture Trustee shall apply all such
money received by it as provided in the Basic Documents.  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 Trust Estate,
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 an Event of Default under this Indenture and any right to
proceed thereafter as provided in Article V.

 

SECTION 8.2  Trust Accounts; Allocations; Payments.

 

(a)                                  On
or prior to the Closing Date, the Issuer shall cause the Servicer to establish
and maintain, in the name of the Indenture Trustee, for the benefit of the
Interestholders, the Trust Accounts as provided in any Series Supplement
and Section 4.1 of the Sale and Servicing Agreement (or with
respect to any Trust Account for any Series of Investor Interests issued
after the Closing Date, on or prior to the closing date with respect to such Series of
Investor Interests).

 

(b)                                 Subject
to and in accordance with Section 8.2(c), after giving effect to
allocations in respect of Dealer Overconcentrations, Manufacturer
Overconcentrations and Product Line Overconcentrations pursuant to the Sale and
Servicing Agreement, Collections of Non-Principal Receivables and Principal
Receivables, Defaulted Amounts and Miscellaneous Payments will be allocated to
each Series from and after the related Series Cut-Off Date on the
basis of the Allocable Non-Principal Collections, Allocable Principal
Collections, Allocable Defaulted Amount and Allocable Miscellaneous Payments
for such Series, respectively, and amounts so allocated to any Series will
not, except as specified in the related Series Supplement, be available to
the Interestholders of any other Series. 
Allocations thereof among the Series in any Group and among the
Classes in any Series and between the Interestholders and the Residual
Interestholders shall be set forth in the related Series Supplement or Series Supplements.

 

(c)                                  For
purposes of determining the Series Allocation Percentage for any Series in
connection with the allocation of Non-Principal Receivables and Principal
Receivables, Defaulted Amounts and Miscellaneous Payments for the specified
Collection Period:

 

46

 

(i)                                     unless
the related Series Supplement shall provide otherwise, each Series upon
issuance, shall be deemed to have been created and in existence as of the first
day of the Collection Period in which the related Series Cut-Off Date
falls and, as a result, shall be allocated (based on its Series Allocation
Percentage) its allocable portion of Non-Principal Receivables and Principal
Receivables, Defaulted Amounts and Miscellaneous Payments for such Collection
Period; and

 

(ii)                                  unless
the related Series Supplement shall provide otherwise, with respect to any
Series, if (x) as of the last day of any Collection Period the amounts on
deposit in the Collection Account and the related Series Accounts are
sufficient to pay in full the outstanding principal amount, accrued interest
and all other amounts payable by the Issuer (whether or not then due) with
respect to any such Series of Investor Interests on the Payment Date
relating to such Collection Period (after giving effect to the allocations,
distributions, withdrawals and deposits to be made on such related Payment
Date) then (y) such Series shall be deemed to have been paid in full on
such last day and, as a result, shall not be allocated any portion of
Non-Principal Receivables and Principal Receivables, Defaulted Amounts and
Miscellaneous Payments for any subsequent Collection Period.  For purposes of making the determination in
clause (x) above, on the date of any such determination it shall be assumed
that any theretofore unpaid Adjustment Payments with respect to the immediately
preceding Collection Period shall be allocated to such Series on the
related Determination Date and shall be payable from amounts allocated to or
available with respect to such Series on the related Payment Date.

 

(d)                                 On
or before the date any distribution is to be made by the Indenture Trustee, all
amounts required to be disbursed by the Indenture Trustee will be deposited by
the Indenture Trustee upon receipt into the applicable Trust Account as shall
be specified in the related Series Supplement.  The Indenture Trustee shall (unless otherwise
provided in any Series Supplement) allocate the amount deposited into such
Trust Accounts to the extent and at the times as provided in the related Series Supplement.  The Indenture Trustee shall distribute
amounts to the Holders of such Series to the extent and at the times
provided in the related Series Supplement.

 

(e)                                  Notwithstanding
any provision of this Indenture to the contrary, for so long as the Seller is
the sole Residual Interestholder and until the Indenture Trustee shall have
received written notice from the Issuer or the Seller to the contrary, all
amounts to be distributed by the Indenture Trustee to the Residual Interestholder
or the Residual Interest Distribution Account shall be distributed to the
Seller to the account specified by the Seller.

 

SECTION 8.3  General Provisions Regarding Trust
Accounts.

 

(a)                                  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 Eligible Investment included therein except for
losses attributable to the Indenture Trustee’s failure to make payments on such
Eligible Investments issued by the Indenture Trustee, in its commercial
capacity as principal obligor and not as trustee, in accordance with their
terms.

 

(b)                                 If
(i) the Servicer shall have failed to give written investment directions
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) an Event
of Default shall have occurred and be continuing with respect to the Investor
Interests but the Investor Interests shall not have been declared due and
payable pursuant to Section 5.2, or, (iii) if such Investor
Interests shall have been declared due and payable following an Event of
Default, but amounts

 

47

 

collected or receivable from the Trust Estate are
being applied in accordance with Section 5.5 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 Eligible
Investments specified in clause (b) of the definition thereof.

 

SECTION 8.4  Release of Trust Estate.

 

(a)                                  Subject
to the payment of its fees and expenses pursuant to Section 6.7,
the Indenture Trustee may, 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 consistent with the provisions of this
Indenture.  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 Investor Interests
Outstanding and all sums due to the Indenture Trustee pursuant to Section 6.7
have been paid, notify the Issuer thereof in writing and upon receipt of an
Issuer Request, release any remaining portion of the Trust Estate that secured
the Investor Interests from the Lien of this Indenture and release to the
Issuer or any other Person entitled thereto any funds then on deposit in the
Collection Account, the Excess Funding Account and, except as otherwise
specified in the related Series Supplement, any other Trust Account.  The Indenture Trustee shall (i) release
any remaining portion of the Trust Estate that secured the Residual Interest
from the Lien of this Indenture and (ii) release to the Issuer or any
other Person entitled thereto any funds then on deposit in the Collection
Account only at such time as (x) there are no Investor Interests Outstanding
and (y) all sums due to the Indenture Trustee pursuant to Section 6.7
have been paid.

 

SECTION 8.5  Opinion of Counsel.  The Indenture Trustee shall receive at least
five days’ notice when requested by the Issuer to take any action pursuant to Section 8.4,
accompanied by copies of any instruments involved, and the Indenture Trustee
shall also require as a condition to such action, an Opinion of Counsel and an
Officer’s Certificate, in form and substance reasonably satisfactory to the
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
shall not have a material adverse effect on the Interestholders; provided,
however, 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,
without independent investigation, on the accuracy and validity of any
certificate or other instrument delivered to the Indenture Trustee pursuant to
the provisions of this Indenture in connection with any such action.

 

SECTION 8.6  Rights of Interestholders.  The Investor Interests shall represent
limited recourse obligations of the Issuer secured by the Collateral, including
the right to receive Collections and other amounts at the times and in the
amounts specified in this Article VIII or in the applicable Series Supplement
to be deposited in Collection Account and any Series Accounts (if so
specified in the related Series Supplement).  The Investor Interests do not represent
obligations of, or interests in, the Originator, the Seller, the Indenture
Trustee or the Servicer.  The Investor
Interests are limited in right of payment to Collections on the Collateral and
other assets of the Issuer allocable to the Investor Interests as provided
herein and in the applicable Series Supplement.

 

48

 

ARTICLE IX

SUPPLEMENTAL INDENTURES

 

SECTION 9.1  Supplemental Indentures Without Consent of
Interestholders.

 

(a)                                  The
Issuer and the Indenture Trustee, when authorized by an Issuer Order and upon
notice to the Rating Agencies, at any time and from time to time, so long as
such amendment would not cause the Issuer to fail to be a QSPE, may enter into
one or more indentures supplemental hereto (which shall conform to the
provisions of 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 Section 3.18 and 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 Investor Interests;

 

(iii)                               to add to the covenants
of the Issuer for the benefit of the Interestholders 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 or to correct or supplement any provision herein or in any
supplemental indenture which may be inconsistent with any other provision
herein or in any supplemental indenture;

 

(vi)                              to
evidence and provide for the acceptance of the appointment hereunder by a
successor trustee with respect to the Investor Interests and the Indenture 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 Trust Indenture Act or
under any similar federal statute hereafter enacted and to add to this
Indenture such other provisions as may be expressly required by the Trust
Indenture Act, and 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; and

 

(viii)                        to provide for the issuance of
one or more new Series of Investor Interests, in accordance with the
provisions of Section 2.1.

 

(b)                                 The
Issuer and the Indenture Trustee, when authorized by an Issuer Order, may, also
without the consent of any of the Interestholders but upon satisfaction of the
Rating Agency Condition at any time and from time to time, so long as such
amendment would not cause the Issuer to fail to be a QSPE, enter into one or
more indentures supplemental hereto for the purpose of adding any provisions
to, changing in any manner, or eliminating any of the provisions of, this
Indenture or modifying in any manner the rights of the Interestholders under
this Indenture; provided, however, that

 

49

 

such action shall not, as evidenced by an Officer’s
Certificate and an Opinion of Counsel (not at the expense of the Indenture
Trustee), adversely affect in any material respect the interests of any
Investor Interestholder unless such Interestholders’ consent is obtained.

 

(c)                                  Notwithstanding
anything contained herein to the contrary, this Indenture and any Series Supplement
may be amended with the consent of the parties thereto (which consent shall not
be unreasonably withheld), but without the consent of any Interestholders 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 generally accepted accounting
principles  (“GAAP”), (b) the
Seller or any Affiliate of the Seller or any of their Affiliates to otherwise
comply with or obtain more favorable treatment under any law or regulation or
any accounting rule or principle or (c) the Seller or Servicer to
remove and reassign any Accounts and/or some or all of the Receivables arising
therein to the extent such removal and reassignment would be consistent with
derecognition under GAAP of the transfer of such Receivables to the Issuer; it
being a condition to any such amendment that the Rating Agency Condition shall
have been met regarding the Investor Interests of all Series.

 

(d)                                 The
Issuer shall not enter into any indenture supplemental hereto pursuant to this Section 9.1
that is inconsistent with the transactions contemplated by the Basic Documents
being accounted for as a sale under GAAP.

 

SECTION 9.2  Supplemental Indentures With Consent of
Interestholders.

 

(a)                                  The
Issuer and the Indenture Trustee, when authorized by an Issuer Order, also may,
with prior written notice to the Rating Agencies and with the written consent
of the Control Investors of each Series of Investor Interests affected
thereby, 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, changing in any manner, or eliminating any
of the provisions of, this Indenture or modifying in any manner the rights of
the Interestholders under this Indenture; provided, however, that
no such supplemental indenture shall, without the consent of the Holder of each
Outstanding Investor Interest affected thereby:

 

(i)                                     change
the due date of any installment of principal of or interest on any Investor
Interest, or reduce the principal amount thereof, the interest rate applicable
thereto, or the Redemption Price with respect thereto, change any place of
payment where, or the coin or currency in which, any Investor Interest or any
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
Investor Interests 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 Investor
Interests, 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 as provided for in this Indenture;

 

(iii)                               impair the right to
institute suit for the enforcement of specified provisions of this Indenture
regarding payment;

 

(iv)                              reduce
the percentage of the aggregate outstanding principal amount of the Investor
Interests required to direct the Indenture Trustee to sell or liquidate the
Trust

 

50

 

Estate pursuant to Section 5.4 if the proceeds of such sale
would be insufficient to pay the principal amount of and accrued but unpaid
interest on the Outstanding Investor Interests;

 

(v)                                 modify
any provision of this Section 9.2 to decrease the required minimum
percentage necessary to approve any amendments to any provisions of this
Indenture;

 

(vi)                              modify
or alter the provisions of the Indenture regarding the voting of Investor
Interests held by the Issuer, the Seller or any Affiliate of either of them; or

 

(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, terminate the Lien of this Indenture on any property at
any time subject hereto or deprive the Holder of any Investor Interest of the
security afforded by the Lien of this Indenture.

 

(b)                                 The
Indenture Trustee may in its discretion determine whether or not any Investor
Interests would be affected (such that the consent of each Interestholder would
be required) by any supplemental indenture proposed pursuant to this Section 9.2
and any such determination shall be conclusive and binding upon the Holders of
all Investor Interests, whether authenticated and delivered thereunder before
or after the date upon which such supplemental indenture becomes effective. The
Indenture Trustee shall not be liable for any such determination made in good
faith.

 

(c)                                  It
shall be sufficient if an Act of Interestholders approves the substance, but
not the form, of any proposed supplemental indenture.

 

(d)                                 Promptly
after the execution by the Issuer and the Indenture Trustee of any supplemental
indenture pursuant to this Section 9.2, the Indenture Trustee shall
mail to the Interestholders to which such amendment or supplemental indenture
relates a notice 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.

 

(e)                                  The
Issuer shall not enter into any indenture supplemental hereto pursuant to this Section 9.2
that is inconsistent with the transactions contemplated by the Basic Documents
being accounted for as a sale under GAAP.

 

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, not at its own expense, and
subject to Sections 6.1 and 6.2, shall be fully protected in
relying upon, an Opinion of Counsel and an Officer’s Certificate stating that
the execution of such supplemental indenture is authorized or permitted by this
Article IX and that all conditions precedent in this Article IX
to the execution of any such amendment have been satisfied.  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
Investor Interests affected thereby, and the respective rights, limitations of
rights, obligations, duties, liabilities and immunities under this Indenture

 

51

 

of the Indenture Trustee, the Issuer and the
Interestholders 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 Investor Interests to
Supplemental Indentures.  Investor
Interests 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 Investor Interests 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 Investor Interests of the same
Series.

 

ARTICLE X

REDEMPTION OF INVESTOR INTERESTS

 

SECTION 10.1  Redemption.

 

(a)                                  A
Series of Investor Interests shall be subject to redemption if and to the
extent provided in the related Series Supplement.

 

(b)                                 Each
Series of Investor Interests shall be subject to redemption as set forth
in this Section 10.1(b).  If
any breach of any of the representations and warranties set forth in Section 2.3
of the Sale and Servicing Agreement shall have a material adverse effect on the
Interestholders, then either the Indenture Trustee or the Control Investors of
the affected Series, by written notice to the Issuer and the Indenture Trustee
may direct the Issuer to redeem all of the Investor Interests then Outstanding
on the second Payment Date following the date of such notice (or such later
date as may be specified in such notice); provided, however, that
no such redemption shall be required to be made if on or prior to the earlier
of he date the Redemption Notice is or is required to be sent to
Interestholders, the representations and warranties set forth in Section 2.3
of the Sale and Servicing Agreement are satisfied in all material respects and
any material adverse effect on the Interestholders caused thereby shall have
been cured.  The Issuer shall promptly
furnish a copy of such notice to the Seller.

 

(c)                                  The
redemption price for any Investor Interests shall be equal to the applicable
Redemption Price set forth in the related Series Supplement. The Issuer
shall only be required to redeem Investor Interests if it has available funds
sufficient to pay such amount. The Issuer shall furnish the Rating Agencies
notice of any such redemption.  If any
Investor Interests are to be redeemed pursuant to this Section 10.1(a),
the Issuer shall furnish notice thereof to the Indenture Trustee not later than
20 days prior to the applicable Redemption Date and the Issuer shall deposit
into the Collection Account on or before the applicable Redemption Date, the
aggregate Redemption Price of the Investor Interests to be redeemed, whereupon
all such Investor Interests shall be due and payable on the Redemption Date.

 

52

 

SECTION 10.2  Form of Redemption Notice.

 

(a)                                  Notice
of redemption of any Investor Interests under Section 10.1 shall be
given by the Indenture Trustee by first-class mail, postage prepaid, mailed not
less than 15 days prior to the applicable Redemption Date to each
Interestholder of record of the Investor Interests to be redeemed at such
Interestholder’s address appearing in the Register.

 

(b)                                 All
notices of redemption shall state:

 

(i)                                     the
applicable Redemption Date;

 

(ii)                                  the
applicable Redemption Price;

 

(iii)                               the place where the
Investor Interests are to be surrendered for payment of the Redemption Price
(which shall be the Agency Office of the Indenture Trustee to be maintained as
provided in Section 3.2);

 

(iv)                              the
CUSIP number, if applicable; and

 

(v)                                 the
principal amount of Investor Interests to be redeemed.

 

(c)                                  Notice
of redemption of the Investor Interests shall be given by the Indenture Trustee
in the name and at the expense of the Issuer. 
Failure to give notice of redemption, or any defect therein, to any
Holder of any Investor Interest shall not impair or affect the validity of
the redemption of any other Investor Interest.

 

SECTION 10.3  Investor Interests Payable on Redemption
Date.  With respect to any Investor
Interests, such Investor Interests shall, following notice of redemption as
required by Section 10.2 (in the case of redemption pursuant to Section 10.1),
on the applicable Redemption Date cease to be Outstanding for purposes of this
Indenture and shall thereafter represent only the right to receive the
applicable Redemption Price and (unless the Issuer shall default in the payment
of such Redemption Price) no interest shall accrue on such Redemption Price for
any period after the date to which accrued interest is calculated for purposes
of calculating such 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 (x) an Officer’s Certificate stating that the Issuer has
complied with all conditions precedent, if any, provided for in this Indenture
relating to the proposed action and (y) an Opinion of Counsel stating that in
the opinion of such counsel all such conditions precedent, if any, have been
complied with 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 with respect to compliance with a condition or covenant provided for
in this Indenture shall include:

 

(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;

 

53

 

(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 (within 90 days of such deposit) to the Issuer
of the Collateral or other property or securities to be so deposited.

 

(i)                                     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 to the Issuer of the 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) above and this clause
(ii), is 10% or more of the Outstanding Amount of the Investor Interests, 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 one percent of the Outstanding Amount of the
Investor Interests.

 

(ii)                                  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.

 

(iii)                               Other than with respect
to the release of the Lien of this Indenture on any Collateral that has been
reassigned in accordance with Section 2.7 of the Sale and Servicing
Agreement, 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 property as
contemplated by clause (v) below, or securities released from the Lien of
this 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 Outstanding Amount of the Investor Interests,
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 [one] percent of the then Outstanding Amount of the
Investor Interests.

 

54

 

(iv)                              Notwithstanding
Section 2.9 or any other provision of this Section 11.1,
the Issuer may (A) collect, liquidate, sell or otherwise dispose of
Receivables and related Collateral Security and proceeds of both as and to the
extent permitted or required by the Basic Documents, (B) make cash
payments out of the Trust Accounts as and to the extent permitted or required
by the Basic Documents and (C) take any other action not inconsistent with
the Trust Indenture Act so long as the Indenture is or is required to be
qualified under the Trust Indenture Act.

 

SECTION 11.2  Form of Documents Delivered to
Indenture Trustee.

 

(a)                                  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.

 

(b)                                 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 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 or the Issuer, stating that the
information with respect to such factual matters is in the possession of the
Servicer, the Seller or the Issuer, unless such Authorized Officer or 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.

 

(c)                                  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.

 

(d)                                 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 Article VI.

 

(e)                                  In
determining whether the holders of the required principal amount of Investor Interests
have concurred in any act, Investor Interests owned by the Issuer, TFC or any
of its Affiliates, shall be disregarded; provided, however, that
for the purposes of determining whether the Indenture Trustee shall be
protected in relying on any such act, only Investor Interests which such
Trustee knows are so owned shall be disregarded.

 

55

 

SECTION 11.3  Acts of Interestholders.

 

(a)                                  Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Indenture to be given or taken by Interestholders or a Series of
Interestholders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Interestholders in person or by agents
duly appointed in writing and shall be subject to Section 5.11
hereof; 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 Interestholders 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 11.3.

 

(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 Investor Interests shall be proved by the Register.

 

(d)                                 Any
request, demand, authorization, direction, notice, consent, waiver or other
action by the Holder of any Investor Interests (or any one or more Predecessor
Interests) shall bind the Holder of every Investor Interest 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 Investor Interest.

 

SECTION 11.4  Notices, etc., to Indenture Trustee,
Issuer and Rating Agencies.  Any
request, demand, authorization, direction, notice, consent, waiver or Act of
Interestholders or other documents provided or permitted by this Indenture
shall be in writing and, if such request, demand, authorization, direction,
notice, consent, waiver or act of Interestholders is to be made upon, given or
furnished to or filed with:

 

(i)                                     the
Indenture Trustee by any Interestholder or by the Issuer, shall be sufficient
for every purpose hereunder if made, given, furnished or filed in writing to or
with the Indenture Trustee at its Corporate Trust Office; or

 

(ii)                                  the
Issuer by the Indenture Trustee or by any Interestholder, shall be sufficient
for every purpose hereunder if in writing and mailed first-class, postage
prepaid to the Issuer addressed to: 
Textron Financial Floorplan Master Note Trust, 40 Westminster Street, P.O. Box
6687, Providence, Rhode Island 02940-6687 Attention: Chief Financial
Officer (telecopy: (401) 621-5045) with copies to (i) to the same
address, Attention: General Counsel (telecopy: (401)621-5040) and (ii) SunTrust
Bank, 25 Park Place, 24th Floor, Atlanta, Georgia 30303, Attention: Corporate
Department,  (telecopy: (404) 588-7335),
or at any other address previously furnished in writing to the Indenture
Trustee by the Issuer.  The Issuer shall
promptly transmit any notice received by it from the Interestholders to the
Indenture Trustee.

 

Notices required
to be given to the Rating Agencies by the Issuer, the Indenture Trustee or the
Owner Trustee shall be in writing, personally delivered or mailed by certified
mail, return receipt requested, to such address as shall be designated by
written notice from any Rating Agency to the other parties.

 

56

 

SECTION 11.5  Notices to Interestholders; Waiver.

 

(a)                                  Where
this Indenture provides for notice to Interestholders of any condition or
event, such notice shall be sufficiently given 
(unless otherwise herein expressly provided) if it is in writing and
mailed, first-class, postage prepaid to each Interestholder affected by such
event, at such Person’s address as it appears on the Register, not later than
the latest date, and not earlier than the earliest date, prescribed for the
giving of such notice.  If notice to
Interestholders is given by mail, neither the failure to mail such notice nor
any defect in any notice so mailed to any particular Interestholder shall
affect the sufficiency of such notice with respect to other Interestholders,
and any notice that is mailed in the manner herein provided shall conclusively
be presumed to have been duly given regardless of whether such notice is in
fact actually received.

 

(b)                                 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 Interestholders 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.

 

(c)                                  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 of Interestholders 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.

 

(d)                                 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 an Event of Default.

 

SECTION 11.6  Alternate Payment and Notice Provisions.  Notwithstanding any provision of this
Indenture or any of the Investor Interests to the contrary, the Issuer may
enter into any agreement with any Holder of a Investor Interest providing for a
method of payment, or notice by the Indenture Trustee or any Paying Agent to
such Holder, that is different from the methods provided for in this Indenture
for such payments or notices.  The Issuer
shall furnish to the Indenture Trustee a copy of each such agreement and the
Indenture Trustee shall cause payments to be made and notices to be given in
accordance with such agreements.

 

SECTION 11.7  Conflict with Trust Indenture Act.

 

(a)                                  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.

 

(b)                                 If
this Indenture is or is required to be qualified under the Trust Indenture Act,
the provisions of Sections 310 through 317 of the Trust Indenture Act 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.

 

57

 

SECTION 11.9  Successors and Assigns.

 

(a)                                  All
covenants and agreements in this Indenture and the Investor Interests by the
Issuer shall bind its successors and assigns, whether so expressed or not.

 

(b)                                 All
covenants and agreements of the Indenture Trustee in this Indenture shall bind
its successors and assigns, whether so expressed or not.

 

SECTION 11.10  Separability.  In case any provision in this Indenture or in
the Investor Interests 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 Investor
Interests, express or implied, shall give to any Person, other than the parties
hereto and their successors hereunder, the Interestholders and the Beneficial
Owners of Investor Interests and (only to the extent expressly provided herein)
the Residual Interestholder and any other party secured hereunder, 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.  If the date on which any payment is due shall
not be a Business Day, then (notwithstanding any other provision of the
Investor Interests 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 (OTHER THAN SECTION 5-1401
OF THE NEW YORK GENERAL OBLIGATIONS LAW), 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 (which may
be counsel to the Indenture Trustee or any other counsel reasonably acceptable
to the Indenture Trustee) to the effect that such recording is necessary either
for the protection of the Interestholders 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  No Recourse.

 

(a)                                  Each
Interestholder will agree by acceptance of a Investor Interest (or interest
therein) that no recourse may be taken, directly or indirectly, with respect to
the obligations of the Issuer or the Indenture Trustee on the Investor
Interests 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 its individual capacity;

 

(ii)                                  any
owner of a beneficial interest in the Issuer; or

 

58

 

(iii)                               any partner,
beneficiary, agent, officer, director or employee of the Indenture Trustee or
the Owner Trustee in its individual capacity, any holder of a beneficial
interest in the Owner Trustee, the Issuer or the Indenture Trustee or of any
successor or assign of 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 has no such
obligation in its 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. For all purposes of this
Indenture, in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of the Trust Agreement.

 

(b)                                 Except
as expressly provided in the Basic Documents, neither the Seller, the Servicer,
the Indenture Trustee nor the Owner Trustee in their respective individual
capacities, any owner of a beneficial interest in the Issuer, nor any of their
respective partners, owners, beneficiaries, agents, officers, directors,
employees or successors or assigns, shall be personally liable for, nor shall
recourse be had to any of them for, the payment of principal of or interest on,
or performance of, or omission to perform, any of the covenants, obligations or
indemnifications contained in the Investor Interests or this Indenture, it
being expressly understood that said covenants, obligations and
indemnifications have been made by the Issuer solely as the Issuer in the
assets of the Issuer.  Each Interestholder
or Beneficial Owner by the acceptance of a Investor Interest (or beneficial
interest therein) will agree that, except as expressly provided in the Basic
Documents, in the case of an Event of Default under this Indenture, the Holder
shall have no claim against any of the foregoing for any deficiency, loss or
claim therefrom; provided, however, that nothing contained herein
shall be taken to prevent recourse to, and enforcement against, the assets of
the Issuer for any and all liabilities, obligations and undertakings contained
in this Indenture or in the Investor Interests.

 

SECTION 11.17  No Petition.  The Indenture Trustee, by entering into this
Indenture, and each Interestholder and Beneficial Owner, by accepting an
Investor Interest (or interest therein) issued hereunder, hereby covenant and
agree that they shall not, prior to the date which is one year and one day
after the termination of the Trust Agreement, acquiesce, petition or otherwise
invoke or cause the Seller or the Issuer to invoke the process of any court or
government authority for the purpose of commencing or sustaining a case against
the Seller or the Issuer under any Insolvency Law or appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar
official of the Seller or the Issuer or any substantial part of its property,
or ordering the winding up or liquidation of the affairs of the Seller or the
Issuer unless Interestholders representing not less than 66 2/3% of the
Outstanding Amount of each Series have approved such action.

 

SECTION 11.18  Inspection.  The Issuer agrees that, on reasonable prior
notice, it shall permit any representative of the Indenture Trustee, during the
Issuer’s normal business hours, to examine all the books of account, records,
reports and other papers of the Issuer, to make copies and extracts therefrom,
to cause such books to be audited by Independent certified public accountants,
and to discuss the Issuer’s affairs, finances and accounts with the Issuer’s
officers, employees and Independent certified public accountants, all at such
reasonable times and as often as may be reasonably requested.  The Indenture Trustee shall and shall cause
its representatives to hold in confidence all such information except to the
extent disclosure may be required by law (and all reasonable applications for
confidential treatment are unavailing) and except to the extent that the
Indenture Trustee may reasonably determine that such disclosure is consistent
with its obligations hereunder.

 

59

 

SECTION 11.19  No Substantive Review of Compliance
Documents.  Other than as
specifically set forth in this Indenture for notices which specifically contain
information of which the Indenture Trustee is to have notice, any reports,
information or other documents provided to the Indenture Trustee are for the
purposes only of enabling the sending party to comply with its document
delivery requirements hereunder and such party’s receipt of any such
information shall not, in and of itself, constitute constructive or actual
notice to the Indenture Trustee of any information contained therein or
determinable from any information contained therein, including the Issuer or
the Servicer’s compliance with any of its covenants, representations or
warranties hereunder.

 

SECTION 11.20  Amendment of Basic Documents.  The Issuer shall not amend, modify or grant
any consent or waiver with respect to the provisions of any of the Basic
Documents without the prior written consent of the Indenture Trustee, except
where the Basic Documents do not require the consent of the Indenture Trustee
for such amendment, modification, consent or waiver.

 

SECTION 11.21  Subordination.

 

(a)                                  The
Issuer and each Holder, by accepting an Investor Interest, acknowledge and
agree that such Investor Interest represents indebtedness of the Issuer and
does not represent an interest in any assets (other than the Conveyed Assets)
of the Seller (including by virtue of any deficiency claim in respect of
obligations not paid or otherwise satisfied from the Conveyed Assets and
proceeds thereof).  In furtherance of and
not in derogation of the foregoing, to the extent the Seller enters into other
securitization transactions, each of the Issuer and each Holder, by accepting
an Investor Interest, acknowledges and agrees that it shall have no right,
title or interest in or to any assets (or interests therein) (other than the
Conveyed Assets) conveyed or purported to be conveyed by the Seller to another
securitization trust or other Person or Persons in connection therewith
(whether by way of a sale, capital contribution or by virtue of the granting of
a lien) (“Other Assets”).  To the
extent that, notwithstanding the agreements and provisions contained in the
preceding sentences of this subsection, the Issuer or any Holder either (i) asserts
an interest or claim to, or benefit from, Other Assets, whether asserted
against or through the Seller or any other Person owned by the Seller, or (ii) is
deemed to have any such interest, claim 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 Federal Bankruptcy Code or any successor provision having similar effect
under the Bankruptcy Code), and whether deemed asserted against or through the
Seller or any other Person owned by the Seller, then the Issuer and each
Holder, by accepting an Investor Interest, further acknowledge and agree that
any such interest, claim or benefit in or from Other Assets is and shall be
expressly subordinated to the indefeasible payment in full of all obligations
and liabilities of the Seller which, under the terms of the relevant documents
relating to the securitization 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 distribution or application under
applicable law, including insolvency laws, and whether asserted against the
Seller or any other Person owned by the Seller), including the payment of
post-petition interest on such other obligations and liabilities.  This subordination provision shall be deemed
a subordination agreement within the meaning of Section 510(a) of the
Bankruptcy Code.  Each Holder further
acknowledges and agrees that no adequate remedy at law exists for a breach of
this Section 11.21 and the terms of this Section 11.21
may be enforced by an action for specific performance.

 

(b)                                 The provisions of this Section 11.21 shall be for the third
party benefit of those entitled to rely thereon and shall survive the
termination of this Indenture.

 

SECTION 11.22  Intercreditor Arrangement.  With respect to a Dealer that is the obligor
under Receivables that have been or will be conveyed to the Seller under the Receivables
Purchase Agreement,

 

60

 

TFC may be or become a lender to such Dealer under an
agreement or arrangement (a “Unrelated Agreement”) other than a
Floorplan Financing Agreement or an Accounts Receivable Financing Agreement (an
“Applicable Financing Agreement”), pursuant to which TFC has been
granted a security interest in the same collateral (the “Common Collateral”)
in which the Applicable Financing Agreement for such Dealer creates a security
interest, which Common Collateral may include the same Financed Assets (the “Common
Financed Assets”) in which such Applicable Financing Agreement creates a
security interest.  The Common Collateral
other than the related Common Financed Assets is referred to herein as the “Common
Non-Financed Asset Collateral.”  The
Indenture Trustee on behalf of the Interestholders is subject to the Seller’s
agreement in Article VII of the Receivables Purchase Agreement
that, with respect to each Receivable of each such Dealer:  (a) the security interest in such Common
Non-Financed Asset Collateral created by the Applicable Financing Agreement and
assigned to the Seller is junior and subordinate to the security interest
therein created by the Unrelated Agreement; (b) the Seller has no legal
right to realize upon such Common Non-Financed Asset Collateral or exercise its
rights under the Applicable Financing Agreement in any manner that is
materially adverse to TFC until all required payments in respect of the
obligation created or secured by the Unrelated Agreement have been made; and (c) in
realizing on such Common Non-Financed Asset Collateral, TFC shall not be
obligated to protect or preserve the rights of the Seller or the Trust in such
Common Non-Financed Asset Collateral.

 

SECTION 11.23  Amendment and Restatement.  This Indenture amends and restates the
Indenture dated as of the March 30, 2001, as amended, among the parties
hereto in its entirety and is not in satisfaction of the terms, provisions or
obligations thereunder.  All liens
granted thereunder shall continue under this Indenture.

 

[signature page follows]

 

61

 

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.

 

	
   

  	
  TEXTRON FINANCIAL FLOORPLAN
  MASTER

  NOTE TRUST

  
	
   

  	
   

  
	
   

  	
  By:    SUNTRUST
  DELAWARE TRUST COMPANY,

  not in its individual capacity but solely as Owner Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jack Ellerin

  	
   

  
	
   

  	
  Name: Jack Ellerin

  
	
   

  	
  Title: Trust Officer

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK, not in its
  individual

  capacity, but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ryan Bittner

  	
   

  
	
   

  	
  Name: Ryan Bittner

  
	
   

  	
  Title: Assistant
  Treasurer

  
					

 

 

EXHIBIT A

 

FORM OF INVESTMENT LETTER

 

 

	
   

  	
          ,
  20   

  

 

 

Textron Financial Floorplan Master Note Trust

Series           
Investor Interests

 

Re:                               Purchase of                  
Unregisterered Interests

 

Ladies and Gentlemen:

 

This letter (the “Investment Letter”)
is delivered by                                     
(the “Holder”) pursuant to Section 2.15 of the Amended and Restated Indenture (the
“Indenture”) dated as of May 26,
2005 between Textron Financial Floorplan Master Note Trust, as Issuer, and The
Bank of New York, as Indenture Trustee. 
Capitalized terms used herein without definition shall have the meanings
set forth in the Indenture.  The Holder
represents to the Issuer as follows:

 

(i)                                     the
Holder has such knowledge and experience in financial and business matters as
to be capable of evaluating the merits and risks of an investment in the
Unregistered Interests and is able to bear the economic risk of such
investment;

 

(ii)                                  the
Holder has reviewed the Indenture, all other Basic Documents and all related
documents, including any applicable note purchase agreement (including the
exhibits thereto) and has had the opportunity to perform due diligence with
respect thereto and to ask questions of and receive answers from the Issuer and
its representatives concerning the Issuer, the Seller and the Unregistered
Interests;

 

(iii)                               the Holder is not
acquiring the Unregistered Interests as an agent or otherwise for any other
person (other than another Holder);

 

(iv)                              the
Holder is a “Qualified Institutional Buyer” as
defined in Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”) (a “Qualified Institutional
Buyer”) and is aware that the seller of the Unregistered Interests
and other parties intend to rely on the statements made herein and the
exemption from the registration requirements of the Securities Act provided by Rule 144A.  The Holder understands that the offering and
sale of the Unregistered Interests have not been and will not be registered
under the Securities Act of 1933, as amended, and have not and will not be
registered or qualified under any applicable “blue sky”
law, and that the offering and sale of the Unregistered Interests have not been
reviewed by, passed on or submitted to any federal or state agency or
commission, securities exchange or other regulatory body;

 

(v)                                 the
Holder is acquiring the Unregistered Interests without a view to any
distribution, resale or other transfer thereof, except as contemplated by the following
sentence.  The Holder

 

 

will
not resell or otherwise transfer the Unregistered Interests or any portion
thereof, except in accordance with the Indenture,
the Basic Documents and any related document, including any applicable note
purchase agreement, and only to a Qualified Institutional Buyer in a
transaction exempt from the registration requirements of the Securities Act of
1933, as amended, and applicable state securities or “blue sky”
laws.  The Holder will notify any Person
to whom it resells or transfers the Unregistered Interests that such resale or
transfer is being made in reliance upon Rule 144A;

 

(vi)                              the
Holder understands that each Note will bear a legend to substantially the
following effect:

 

THIS NOTE HAS NOT
BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED EXCEPT (A) TO A PERSON WHOM THE SELLER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A
UNDER THE SECURITIES ACT IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A
WHO IS PURCHASING THE NOTES FOR HIS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER OR (B) TO AN ACCREDITED INVESTOR THAT IS NOT
A QUALIFIED INSTITUTIONAL BUYER (SUBJECT IN THE CASE OF CLAUSE (B) TO
RECEIPT BY THE INDENTURE TRUSTEE OF SUCH CERTIFICATES AND OTHER DOCUMENTS AS
ARE REQUIRED UNDER THE INDENTURE), IN EACH CASE IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER
JURISDICTION.

 

(vii)                           this Investment Letter has
been duly authorized, executed and delivered and constitutes the legal, valid
and binding obligations of the Holder, enforceable against the Holder in
accordance with its terms, except as such enforceability may be limited by
receivership, conservatorship, bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforcement of creditors’ rights generally
and general principles of equity.

 

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
					

 

2Exhibit 4.2

 

 

AMENDED AND RESTATED

SERIES 2001-1
SUPPLEMENT

 

Dated as of May 26,
2005

 

to

 

AMENDED AND RESTATED
INDENTURE

 

dated as of May 26,
2005

 

among

 

TEXTRON FINANCIAL
FLOORPLAN MASTER NOTE TRUST

(formerly known as
Textron Financial Corporation Receivables Trust 2001-CP-1),

as Issuer

 

TEXTRON FINANCIAL
CORPORATION,

as Servicer

 

and

 

THE BANK OF NEW YORK,

as Indenture Trustee

 

 

 

TEXTRON FINANCIAL
FLOORPLAN MASTER NOTE TRUST

SERIES 2001-1 NOTES

 

 

	
  ARTICLE I

  	
   

  
	
  Definitions

  	
   

  
	
   

  	
   

  
	
  Section 1.01

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
  Creation of the Series 2001-1
  Notes

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.01 

  	
  Designation

  	
   

  
	
  Section 2.02 

  	
  Form,
  Execution, Authentication and Delivery of Series 2001-1 Notes

  	
   

  
	
  Section 2.03 

  	
  Issuance of
  Additional Series 2001-1 Notes

  	
   

  
	
  Section 2.04 

  	
  Incremental Fundings

  	
   

  
	
  Section 2.05 

  	
  Procedure
  for Decreasing the Invested Amount

  	
   

  
	
  Section 2.06 

  	
  Transfer of Class B Notes

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  
	
  Servicing Fee

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.01 

  	
  Servicing Compensation

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  
	
  Rights
  of Series 2001-1 Noteholders and Allocation and Application of
  Collections

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.01 

  	
  Daily
  Allocations; Payments to Residual Interestholder

  	
   

  
	
  Section 4.02 

  	
  Monthly Interest

  	
   

  
	
  Section 4.03 

  	
  Determination of
  Monthly Principal

  	
   

  
	
  Section 4.04 

  	
  Establishment
  of Excess Funding Account

  	
   

  
	
  Section 4.05 

  	
  Application of Collections

  	
   

  
	
  Section 4.06 

  	
  Distributions
  to Series 2001-1 Noteholders

  	
   

  
	
  Section 4.07 

  	
  Investor Charge-Offs

  	
   

  
	
  Section 4.08 

  	
  Excess Funding Account

  	
   

  
	
  Section 4.09 

  	
  Reallocated Principal
  Collections

  	
   

  
	
  Section 4.10 

  	
  Excess Non-Principal
  Collections

  	
   

  
	
  Section 4.11 

  	
  Excess Principal
  Collections

  	
   

  
	
  Section 4.12 

  	
  Reserve Account

  	
   

  
	
  Section 4.13 

  	
  Investment
  of Amounts on Deposit in Series Accounts

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  
	
  Distributions
  and Reports to Series 2001-1 Noteholders

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.01 

  	
  Distributions

  	
   

  
	
  Section 5.02 

  	
  Reports
  and Statements to Series 2001-1 Noteholders

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  
	
  Early Amortization Events

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.01 

  	
  Additional Early
  Amortization Events

  	
   

  
	
  Section 6.02 

  	
  Recommencement
  of the Revolving Period

  	
   

  

 

i

 

	
  ARTICLE VII

  	
   

  
	
  Optional Purchase

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.01 

  	
  Optional Purchase

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  
	
  Final Distributions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.01 

  	
  Acquisition
  of Notes Pursuant to Section 10.1 of the Indenture; Distributions
  pursuant to Section 7.01 of this Series Supplement or Section 5.4
  of the Indenture

  	
   

  
	
  Section 8.02 

  	
  Series Termination

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
   

  
	
  Other Series Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.01 

  	
  Additional Covenants

  	
   

  
	
  Section 9.02 

  	
  Tax Treatment of
  the Series 2001-1 Notes

  	
   

  
	
  Section 9.03
  

  	
  Supplemental
  Indentures

  	
   

  
	
  Section 9.04
  

  	
  Waiver of Past
  Defaults

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
   

  
	
  Miscellaneous Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.01

  	
  Ratification
  of Agreement

  	
   

  
	
  Section 10.02

  	
  Counterparts

  	
   

  
	
  Section 10.03

  	
  GOVERNING LAW

  	
   

  
	
  Section 10.04

  	
  Amendment
  and Restatement

  	
   

  

 

	
  EXHIBITS

  	
   

  
	
   

  	
   

  
	
  Exhibit A

  	
  Forms of Series 2001-1 Notes

  
	
  Exhibit B

  	
  Form of Payment Date Statement

  

 

ii

 

THIS AMENDED AND
RESTATED SERIES SUPPLEMENT, dated as of May 26, 2005 (as amended,
restated, supplemented or otherwise modified from time to time, the “Series Supplement”) to the Amended and
Restated Indenture, dated as of May 26, 2005 (as amended, restated,
supplemented or otherwise modified from time to time, the “Indenture”), between TEXTRON FINANCIAL FLOORPLAN
MASTER NOTE TRUST (formerly known as Textron Financial Corporation Receivables
Trust 2001-CP-1) (the “Issuer”
or the “Trust”), TEXTRON FINANCIAL
CORPORATION (the “Servicer”) and THE BANK
OF NEW YORK as Indenture Trustee (as indenture trustee and not in its
individual capacity, the “Indenture Trustee”).

 

Section 2.1 of the Indenture provides that the Issuer may from
time to time issue one or more new Series of Investor Interests.  The Principal Terms of any new Series of
Investor Interests are to be set forth in a Series Supplement.  Pursuant to this Series Supplement, the
Issuer and the Indenture Trustee shall create the Series 2001-1
Notes and specify the Principal Terms thereof. 
The Servicer is acknowledging this Series Supplement to agree to
the terms hereof applicable to the Servicer. 
The parties hereto acknowledge that the Issuer is not a separate entity
for tax purposes and that the overall transaction is being structured so that
the Class A and Class B Floating Rate Variable Funding Notes, if held
by Persons other than the Seller, will be characterized as debt for federal tax
purposes.

 

On March 30,
2001 the Issuer issued its Series 2001-1 Notes pursuant to the
Indenture and that certain Series 2001- I Supplement dated as of March 30,
2001 among the Issuer, the Servicer and the Indenture Trustee (as heretofore
amended, the Existing Supplement”). 
The Issuer, the Servicer and the Indenture Trustee wish to amend and
restate the Existing Supplement in its entirety upon the terms and conditions
set forth herein.

 

ARTICLE I

Definitions

 

Section 1.01  Definitions.

 

(a)                                  Whenever
used in this Series Supplement, the following words and phrases have the
following meanings.

 

“Agent” means
any “Managing Agent” as defined in the Class A Note Purchase Agreement.

 

“Agreement” means the Amended and Restated Sale
and Servicing Agreement, dated as of the date hereof, among Textron Financial
Corporation, as Servicer, Textron Receivables Corporation III, as Seller, the
Indenture Trustee and the Issuer, as amended from time to time.

 

“Allocable Defaulted Amount” means for any
Collection Period, the product of (a) the average daily Series 2001-1
Allocation Percentage for that Collection Period and (b) the Defaulted
Amount for that Collection Period (after giving effect to any allocation of a
portion of the Defaulted Amount to the Residual Interestholder pursuant to Section 4.2
of the Agreement).

 

“Allocable Miscellaneous Payments” means, with
respect to any day, an amount equal to the product of (i) the Series 2001-1
Allocation Percentage for such day and (ii) Miscellaneous Payments on such
day.

 

 

“Allocable Non-Principal Collections” means, with
respect to any day, an amount equal to the product of (i) the Series 2001-1
Allocation Percentage for such day and (ii) the aggregate amount of Non-Principal
Collections deposited in the Collection Account (after giving effect to any
allocation of Non-Principal Collections to the Residual Interestholder pursuant
to Section 4.2 of the Agreement).

 

“Allocable Principal Collections” means, with
respect to any day, an amount equal to the product of (i) the Series 2001-1
Allocation Percentage for such day and (ii) the aggregate amount of
Principal Collections deposited in the Collection Account on such day (after
giving effect to any allocation of Non-Principal Collections to the Residual
Interestholder pursuant to Section 4.2 of the Agreement).

 

“Alternate
Purchasers” has the meaning specified in the Class A Note Purchase
Agreement.

 

“Applicable
LIBO Percentage” means, at any time of determination the applicable “Margin”
set forth below based upon the senior unsecured long-term debt rating of TFC by
Standard & Poor’s and Moody’s at such time of determination (and if
such debt ratings for Standard & Poor’s and Moody’s are not in the
same column below, the higher of such two ratings (corresponding to the lower
Margin) shall be the applicable Margin):

 

S&P/Moody’s Long Term
Debt Rating

 

	
   

  	
   

  	
  A+/A1

  	
   

  	
  A/A2

  	
   

  	
  A-/A3

  	
   

  	
  BBB+/Baa1

  	
   

  	
  BBB/Baa2

  	
   

  	
  any other
  rating

  	
   

  
	
  Margin

  	
   

  	
  52.5

  	
   

  	
  60

  	
   

  	
  70

  	
   

  	
  85

  	
   

  	
  112.5

  	
   

  	
  150

  	
   

  

 

“Available Investor Non-Principal Collections”
means, with respect to any Payment Date, the Investor Non-Principal Collections
for the related Collection Period.

 

“Available Investor Principal Collections” means,
with respect to any Payment Date, the sum of the Investor Principal Collections
for the related Collection Period and the amount, if any, of Available Investor
Non-Principal Collections and Investment Proceeds allocated to cover the
Investor Defaulted Amount, Investor Dilution Amount or to reverse Investor
Charge-Offs on such Payment Date.

 

“Available
Reserve Account Amount” means, with respect to any Payment Date, an amount
equal to the lesser of (a) the amount on deposit in the Reserve Account
(exclusive of Investment Proceeds on such date and before giving effect to any
deposit to, or withdrawal from, the Reserve Account made or to be made with
respect to such date) and (b) the Required Reserve Account Amount, in each
case on such Payment Date.

 

“Base Rate”
means, with respect to any Determination Date, a fraction (expressed as a
percentage (annualized)), the numerator of which is the sum of (a) the
amount of interest on the Class A Notes and the Class B Notes due on
the related Payment Date plus (b) the Investor Monthly Servicing Fee due
on the related Payment Date, and the denominator of which is the Outstanding
Amount of the Series 2001-1 Notes as of the beginning of the related
Collection Period.

 

2

 

“Breakage Costs”
has the meaning specified in the Class A Note Purchase Agreement.

 

“Calculation Agent” means the Indenture Trustee or
any other Calculation Agent selected by the Residual Interestholder which is
reasonably acceptable to the Indenture Trustee.

 

“Class A Additional Interest” has the meaning
specified in Section 4.02(a).

 

“Class A
Decrease” has the meaning specified in Section 2.05.

 

“Class A
Interest Rate” means, with respect to any Interest Period, (a) with
respect to any portion of the Class A Notes owned by a Conduit Purchaser
and funded through the issuance of Commercial Paper, the CP Rate applicable to
such Conduit Purchaser for such Interest Period, (b) with respect to any
portion of the Class A Notes not subject to clause (a) above owned by
a Conduit Purchaser or an Alternate Purchaser, the LIBO Rate applicable to such
Conduit Purchaser or Alternate Purchaser for such Interest Period plus the
Applicable LIBO Percentage per annum as the same may be adjusted pursuant to Section 2.05(b) of
the Class A Note Purchase Agreement; provided, however, that
if (i) a Purchaser determines that it would be contrary to law or the
directive of any central bank or other governmental authority to obtain United
States dollars in the London interbank market to fund or maintain its
investment in the Class A Notes for such Interest Period or (ii) such
Purchaser is unable, by reason of circumstances affecting the London interbank
market generally, to obtain United States dollars in such market to fund its
investment in the Class A Notes for such Interest Period, then the Class A
Interest Rate shall be the Prime Rate, or (iii) if such Purchaser
determines that the maintenance of its investment in the Class A Notes for
such Interest Period at the LIBO Rate will not adequately and fairly reflect
the cost to such Purchaser of funding such investment at such rate, then the Class A
Interest Rate shall be the lesser of (A) the cost to such Purchaser of
funding its investment in the Class A Notes for such Interest Period and (B) the
Prime Rate; and, provided, further, that any such Class A
Notes subject to clause (b) shall bear interest at the Prime Rate for the
first two Business Days following the purchase thereof and (c) with
respect to the Outstanding Principal Amount of each Class A Note at all
times (x) following the occurrence of an Early Amortization Event other than of
the type described in Section 6.01(a)(i) or Section 6.01(a)(vi) or
(y) during any Interest Period (or portion thereof) when an Early Amortization
Event described in Section 6.01(a)(vi) is continuing, the Prime Rate
plus 1.00% per annum.

 

“Class A Interest Shortfall” has the meaning
specified in Section 4.02(a).

 

“Class A Monthly Interest” has the meaning
specified in Section 4.02(a).

 

“Class A Note” has the meaning specified in Section 2.01(a).

 

“Class A Note Purchase Agreement” means the
Amended and Restated Class A Note Purchase Agreement dated as of the date
hereof among the Seller, the Issuer, the Servicer, the Conduit Purchasers,
Alternate Purchasers and Managing Agents from time to time party thereto, and
Bank of America, N.A. as the funding agent, as amended from time to time.

 

“Class A Noteholder” means any Holder of a Class A
Note, and “Class A Noteholders” means the Holders of the Class A
Notes.

 

3

 

“Class B
Decrease” has the meaning specified in Section 2.05.

 

“Class B Interest Shortfall” has the meaning
specified in Section 4.02(b).

 

“Class B
Interest Rate” means the Prime Rate plus 1.5%.

 

“Class B Monthly Interest” has the meaning
specified in Section 4.02(b).

 

“Class B Note” has the meaning specified in Section 2.01(a).

 

“Class B
Note Purchase Agreement” means the Amended and Restated Class B Note
Purchase Agreement dated as of the date hereof between the Seller and the
Issuer, as amended from time to time.

 

“Class B Noteholder” means any Holder of a Class B
Note, and “Class B Noteholders” means
the Holders of the Class B Notes.

 

“Closing Date”
means May 26, 2005 and each date on which the principal amount of the Series 2001-1
Notes is increased pursuant to Section 2.03.

 

“Commercial
Paper” has the meaning specified in the Class A Note Purchase
Agreement.

 

“Commitment
Termination Date” means the earliest of (i) the Scheduled Liquidity
Termination Date, (ii) the occurrence of an Early Amortization Event or an
Event of Default and (iii) five days following receipt of written notice
from the Seller.

 

“Conduit
Purchaser” has the meaning specified in the Class A Note Purchase
Agreement.

 

“Control
Investors” means Class A Noteholders representing at least a majority
of the  Outstanding Amount of Class A
Notes.

 

“CP Costs”
shall mean, with respect to any Conduit Purchaser and for any Interest Period,
the sum of (i) discount accrued on pooled Commercial Paper during such
Interest Period, plus (ii) any and all accrued commissions in respect of
placement agents and commercial paper dealers in respect of pooled Commercial
Paper for such Interest Period, plus (iii) issuing and paying agent fees
incurred on such pooled Commercial Paper for such Interest Period plus (iv) other
costs associated with funding small or odd-lot amounts with respect to all
receivable purchase facilities which are substantially funded by pooled
Commercial Paper for such Interest Period, minus (v) any accrual of income
net of expenses received during such Interest Period from investment of
collections received under all receivable purchase facilities funded
substantially with pooled Commercial Paper, minus (vi) any payment
received by such Conduit Purchaser during such Interest Period net of expenses
in respect of Breakage Costs or similar indemnification payments, related to
the prepayment of any portion of the Class A Notes of such Conduit
Purchaser pursuant to the terms of any receivable purchase facilities funded
substantially with pooled Commercial Paper.

 

“CP Rate”
shall mean, with respect to any Conduit Purchaser for any Interest Period, a
per annum rate equal to a fraction, expressed as a percentage, the numerator of
which shall be

 

4

 

equal to the product of (i) its CP Costs for such Interest Period,
times (ii)  the percentage share that the Class A Notes held
by such Conduit Purchaser represents in relation to all assets or investments
associated with any receivable purchase facility held by such Conduit Purchaser
and funded substantially with pooled Commercial Paper, for each day during such
Interest Period (or portion thereof), and the denominator of which is the
weighted daily average outstanding principal amount of Class A Notes held
by such Conduit Purchaser during such Interest Period.  In addition to the foregoing costs, if any
Incremental Funding shall be required during any period of time determined by
the applicable Managing Agent of the applicable Conduit Purchaser’s Ownership
Group in its sole discretion to result in an incrementally higher CP Rate
applicable to such Incremental Funding, the Invested Amount associated with any
such Incremental Funding shall, during such period, be deemed to be funded by
the Conduit Purchaser in a special pool (which may include capital associated
with other receivable purchase facilities) for the purposes of determining such
additional CP Rate applicable only to such special pool and charged each day
during such period against such Invested Amount.

 

“Decrease”
has the meaning specified in Section 2.05.

 

“Early Amortization Event” means any Early
Amortization Event specified in Section 5.17 of the Indenture,
together with any additional Early Amortization Event specified in Section 6.01
of this Series Supplement.

 

“Early Amortization Period” means a period
beginning on the date on which an Early Amortization Event specified in Section 5.17
of the Indenture or Section 6.01 of this Series Supplement
shall have occurred with respect to the Series 2001-1 Notes and
terminating on the earliest of: (a) the payment in full of the outstanding
principal amount of and all accrued and unpaid interest on the Series 2001-1
Notes and (b) the Series 2001-1 Stated Maturity Date.  Notwithstanding anything to the contrary in
this Series Supplement, an Early Amortization Period that commences before
the scheduled end of the Revolving Period may be terminated, and the Revolving
Period may recommence, if the Rating Agency Condition is satisfied.

 

“Enhancement
Trigger Event” means the occurrence of any of the following event(s): (a)(i) on
any Determination Date, the average of the Monthly Payment Rates for the three
preceding Collection Periods is less than 14% for the Determination Dates
falling in February through May, less than 16% for the Determination Dates
falling in June, less than 18% for the Determination Dates falling in July through
October or less than 16% for the Determination Dates falling in November through
January or (ii) on any Determination Date, the Portfolio Yield is
less than the sum of the Base Rate plus 1.00% or (b) on any Determination
Date, the average of the Monthly Payment Rates for the three preceding
Collection Periods is less than 13% for the Determination Dates falling in February through
May, less than 15% for the Determination Date falling in June, less than 17%
for the Determination Dates falling in July through October or less
than 15% for the Determination Dates falling in November through January.

 

“Enhancement
Trigger Period” means a period beginning on the date on which an
Enhancement Trigger Event shall have occurred and terminating on the date on
which no Enhancement Trigger Event shall be continuing; provided, however,
that if the Early Amortization Period has commenced during the continuance of
an Enhancement Trigger Period,

 

5

 

such Enhancement Trigger Period shall be deemed to be continuing during
the Early Amortization Period.

 

“Fee Letter”
has the meaning specified in the Class A Note Purchase Agreement.

 

“Final Payment Date” means the earlier of (i) the
Series 2001-1 Stated Maturity Date and (ii) the first Payment
Date on which, after giving effect to all payments to be made on that Payment
Date, the outstanding principal amount of the Series 2001-1 Notes
will be paid in full.

 

“Fixed Allocation Percentage” means, with respect
to any day, the percentage equivalent (which percentage shall never exceed
100%) of a fraction, the numerator of which is the Invested Amount as of the
last day of the Revolving Period, and the denominator of which is the product
of the Series 2001-1 Allocation Percentage for the day for which the
Fixed Allocation Percentage is being calculated times the greater of (A) the
sum of (x) the Net Pool Balance as of the most recent Reset Date and (y) the Series 2001-1
Excess Funding Amount at the end of such most recent Reset Date and (B) the
sum of the numerators used to calculate the allocation percentage for all
outstanding Series of Investor Interests as of the date of determination.

 

“Floating Allocation Percentage” means, with
respect to any day, the percentage equivalent (which percentage shall never
exceed 100%) of a fraction, the numerator of which is the Invested Amount as of
the most recent Reset Date and the denominator of which is the product of the Series 2001-1 Allocation Percentage for the day for which the Floating Allocation
Percentage is being calculated times the greater of (A) the sum of (x) the
Net Pool Balance as of the most recent Reset Date and (y) the Series 2001-1
Excess Funding Amount at the end of such most recent Reset Date and (B) the
sum of the numerators used to calculate the allocation percentage for all
outstanding Series of Investor Interests as of the date of determination.

 

“Group One”
means Series 2001-1 and each other outstanding Series hereafter
specified in the related Series Supplement to be included in Group One.

 

“Group Purchase
Limit Excess” has the meaning specified in the Class A Note Purchase
Agreement.

 

“Increased Cost
Amount” has the meaning specified in the Class A Note Purchase
Agreement.

 

“Incremental
Funding” has the meaning specified in the Class A Note Purchase
Agreement with respect to the Class A Notes and the meaning specified in
the Class B Note Purchase Agreement with respect to the Class B
Notes.

 

“Indemnified
Amounts” has the meaning specified in the Class A Note Purchase
Agreement.

 

“Indenture” has the meaning set forth in the
recitals to this Series Supplement.

 

“Indenture Trustee” has the meaning set forth in
the recitals to this Series Supplement.

 

6

 

“Initial Invested Amount” means, with respect to
the Series 2001-1 Notes, $588,235,294, $550,000,000 of which is the
Initial Invested Amount of the Class A Notes and $38,235,294 of which is
the Initial Invested Amount of the Class B Notes, plus the amount of any
increase in the principal amount of the Series 2001-1 Notes pursuant
to Section 2.03 or otherwise pursuant to an amendment hereto.

 

“Initial Payment Date” means July 13, 2005.

 

“Interest Period” means, for any Payment Date, the
period from and including the Payment Date preceding such Payment Date to but
excluding such Payment Date (or in the case of the Initial Payment Date, the
period from and including the Closing Date to but excluding the Initial Payment
Date).

 

“Interest Rate”
means, with respect to the Class A Notes, the Class A Interest Rate
and with respect to the Class B Notes, the Class B Interest Rate.

 

“Invested Amount” means, when used with respect to
any date, an amount equal to (a) the Initial Invested Amount of the Series 2001-1
Notes, plus (b) the amount of any increase in the principal amount
of the Series 2001-1 Notes pursuant to Section 2.04, minus (c) the amount, without duplication,
of principal payments made to Series 2001-1 Noteholders prior to
such date, minus (d) the excess, if
any, of the aggregate amount of Investor Charge-Offs prior to such date over
Investor Charge-Offs reimbursed pursuant to Section 4.07 prior to
such date, provided that the Invested Amount shall in no event be less than
zero.

 

“Investment Proceeds” means, with respect to any
Determination Date and any Payment Date, an amount equal to the Series 2001-1
Allocation Percentage of the interest and other investment earnings (net of
losses and investment expenses) on funds held in the Reserve Account and the Series 2001-1
Allocation Percentage of the interest and other investment earnings (net of losses
and investment expenses) on funds held in the Collection Account and the Excess
Funding Account credited to the Collection Account pursuant to Section 4.1
of the Agreement.

 

“Investor Charge-Offs” has the meaning specified
in Section 4.07.

 

“Investor Defaulted Amount” means, with respect to
any Payment Date, an amount equal to the product of (a) the Allocable
Defaulted Amount for the related Collection Period and (b) the average
daily Floating Allocation Percentage for the related Collection Period.

 

“Investor
Dilution Amount” mean, with respect to any Payment Date, an amount equal to
the average daily Series 2001-1 Allocation Percentage for the
related Collection Period of any Dilution Amount.

 

“Investor Monthly Servicing Fee” has the meaning
specified in Section 3.01.

 

“Investor Non-Principal Collections” means, with
respect to any Deposit Date (i) falling in the Revolving Period, the sum
of (a) the product of the Floating Allocation Percentage and Allocable Non-Principal
Collections for such day plus (b) any Allocable Miscellaneous Payments
that are treated as Investor Non-Principal Collections pursuant to Section 4.01(e))

 

7

 

retained in the Collection Account pursuant to Section 4.01(b) for
such day and (ii) occurring after the last day of the Revolving Period,
the sum of (a) the product of the Fixed Allocation Percentage and
Allocable Non-Principal Collections for such day plus (b) any Allocable
Miscellaneous Payments that are treated as Investor Non-Principal Collections
pursuant to Section 4.01(e)) retained in the Collection Account
pursuant to Section 4.01(b) for such day.

 

“Investor Principal Collections” means, with
respect to any Deposit Date, (i) falling in the Revolving Period, the sum
of (a) the product of the Floating Allocation Percentage and Allocable
Principal Collections for such day plus (b) any Allocable Miscellaneous
Payments that are treated as Investor Principal Collections for such day and (ii) occurring
after the last day of the Revolving Period, the sum of (a) the product of
the Fixed Allocation Percentage and Allocable Principal Collections for such
day plus (b) any Allocable Miscellaneous Payments that are treated as
Investor Principal Collections for such day.

 

 “Issuer”
has the meaning set forth in the recitals to this Series Supplement.

 

“LIBO Rate” means, with respect to any Interest
Period, the rate per annum equal to the (i) the applicable British Bankers’
Association Interest Settlement Rate for deposits in U.S. dollars appearing on
Reuters Screen FRBD as of 11:00 a.m. (London time) two Business Days prior
to the first day of the relevant Interest Period, and having a maturity equal
to such Interest Period, provided that, (1) if Reuters Screen FRBD
is not available to the Calculation Agent for any reason, the applicable LIBO
Rate for the relevant Interest Period shall instead be the applicable British
Bankers’ Association Interest Settlement Rate for deposits in U.S. dollars as
reported by any other generally recognized financial information service as of
11:00 a.m. (London time) two Business Days prior to the first day of such
Interest Period, and having a maturity equal to such Interest Period, and (2) if
no such British Bankers’ Association Interest Settlement Rate is available to
the Calculation Agent, the applicable LIBO Rate for each member of an Ownership
Group for the relevant Interest Period shall instead be the rate determined by
the Calculation Agent to be the rate at which the Managing Agent of such
Ownership Group  (or, if applicable, the
primary bank affiliate of such Managing Agent) offers to place deposits in U.S.
dollars with first-class banks in the London interbank market at approximately
11:00 a.m. (London time) two Business Days prior to the first day of such
Interest Period, in the approximate amount to be funded at the LIBO Rate and
having a maturity equal to such Interest Period, divided by (ii) one minus
the maximum aggregate reserve requirement (including all basic, supplemental,
marginal or other reserves) which is imposed against the Calculation Agent in
respect of Eurocurrency liabilities, as defined in Regulation D of the Board of
Governors of the Federal Reserve System as in effect from time to time
(expressed as a decimal), applicable to such Interest Period.  The LIBO Rate shall be rounded, if necessary,
to the next higher 1/16 of 1%.

 

“Managing Agent”
has the meaning specified in the Class A Note Purchase Agreement.

 

“Monthly Payment Rate” means, for any Collection
Period, the percentage derived from dividing Principal Collections for such
Collection Period less Principal Collections allocated to the Residual
Interestholder pursuant to Sections 4.2(f) through (h) of
the Agreement by the beginning Net Pool Balance for such Collection Period.

 

8

 

“Monthly Principal” has the meaning specified in Section 4.03.

 

“Monthly Principal Reallocation Amount” means,
for any Collection Period, an amount equal to the lesser of (a) the excess of
(x) the amount needed to make the payments described in Sections 4.05(a)(i)
and (ii) over (y) the amount of Non-Principal Collections and amounts
withdrawn from the Reserve Account that are available to cover the payments
described in Sections 4.05(a)(i) and (ii) and (b) the excess, if
any, of (x) the initial maximum principal amount of the Class B Note over (y)
the amount of unreimbursed Investor Charge-Offs after giving effect to Investor
Charge-Offs for the related Collection Period.

 

“Monthly Servicing Fee”
has the meaning specified in Section 3.01.

 

“Note Purchase
Agreements” means the Class A Note Purchase Agreement and the Class B
Note Purchase Agreement.

 

“Other Costs”
has the meaning set forth in the Class A Note Purchase Agreement.

 

“Other Fees”
means, for any Collection Period, the fees and amounts payable for such
Collection Period as described in the Fee Letter.

 

“Other Monthly
Amounts” means, for any Collection Period, the Increased Cost Amount, Other
Fees, Other Costs, Breakage Costs and Indemnified Amounts payable to the Series 2001-1
Interestholders for such Collection Period, together with any other amounts due
to any Interestholder under any of the Basic Documents or the Class A Note
Purchase Agreements.

 

“Ownership
Group” has the meaning specified in the Class A Note Purchase
Agreement.

 

“Partial Amortization Period” means a period on
which a Group Purchase Limit Excess exists and ending on the earlier of (a) the
earliest date on which no Group Purchase Limit Excess exists or (b) the
commencement of the Early Amortization Period.

 

“Payment Date Statement” has the meaning specified
in Section 5.02.

 

“Prime Rate” means with respect to any member of
an Ownership Group  and with respect to
amounts funded by such Ownership Group, a rate per annum equal to the corporate
base rate, prime rate or base rate of interest, as applicable, announced by the
Managing Agent for such Ownership Group (or, if applicable, by the primary bank
affiliate of such Managing Agent) from time to time, changing when and as such
rate changes and “Prime Rate” for purposes of the Class B Interest Rate
shall mean the rate per annum equal to the corporate base rate, prime rate or
base rate of interest, as applicable, announced by Bank of America, N.A. from
time to time, changing when and as such rate changes.

 

“Portfolio
Yield” means, with respect to any Determination Date, a fraction expressed
as a percentage (annualized), the numerator of which is an amount equal to
Non-Principal Collections for the related Collection Period and the denominator
of which is the Invested Amount less amounts the Series 2001-1
Excess Funding Amount as of the beginning of the related Collection Period.

 

9

 

“Rating Agency
Condition” means, in relation to any proposed action, amendment or waiver,
that the Issuer (or applicable Person) has obtained prior written consent to
such action, amendment or waiver, from the Control Investors.

 

“Reallocated
Principal Collections” means, for any Payment Date, Investor Principal
Collections applied in accordance with Section 4.09 in an amount not to
exceed the Monthly Principal Reallocation Amount for the related Collection
Period.

 

“Record Date” means, with respect to any Payment
Date, the close of business on the last day of the Collection Period preceding
such Payment Date.

 

“Redemption Price” means, with respect to any
Payment Date, the sum of (a) the aggregate Outstanding Amount of the Series 2001-1
Notes to be redeemed on the Determination Date preceding the Payment Date on
which such redemption is to be made, (b) accrued and unpaid interest on
the unpaid balance of the Series 2001-1 Notes (calculated on the
basis of the Outstanding Amount of each Class of the Series 2001-1
Notes at the Interest Rate as in effect during the applicable Interest Periods
through the day preceding such Payment Date), (c) without duplication with
respect to any amounts due under clause (b) of this definition, any Class A
Additional Interest with respect to the Class A Notes to be repurchased, (d) the
aggregate amount of unreimbursed Investor Charge-Offs and Investor Defaulted
Amounts with respect to the Series 2001-1 Notes to be redeemed and (e) accrued
and unpaid Investor Monthly Servicing Fees.

 

“Required
Reserve Account Amount” means, for any day, an amount equal to (a) the
product of (i) the Required Reserve Account Percentage and (ii) the
Invested Amount of the Series 2001-1 Notes on such day or (b) any
other amount designated by the Seller; provided, however, that if
such designation is of a lesser amount, the Seller shall (i) provide the
Indenture Trustee with evidence that the Rating Agency Condition shall have
been satisfied and (ii) deliver to the Indenture Trustee a certificate of
an Authorized Officer to the effect that, based on the facts known to such
officer at such time, in the reasonable belief of the Seller, such designation
will not cause an Early Amortization Event to occur with respect to Series 2001-1.

 

“Required
Reserve Account Percentage” means (i) 0% so long as an Enhancement
Trigger Event has not occurred and (ii) if an Enhancement Trigger Event
has occurred, the Required Reserve Account Percentage shall be the aggregate of
(i) 0.75%, if an Enhancement Trigger Event under clause (a)(i) of the
definition thereof has occurred, (ii) 1.00%, if an Enhancement Trigger
Event under clause (a)(ii) of the definition thereof has occurred, and (iii) 1.00%,
if an Enhancement Trigger Event under clause (b) of the definition thereof
has occurred.

 

“Required Residual Percentage” means, with respect
to Series 2001-1, 103%.

 

“Required
Subordination Percentage” means 6.50%.

 

“Reserve
Account” means the account designated as such, established and maintained
pursuant to Section 4.04.

 

“Reserve
Account Deficiency” means the excess, if any, of the Required Reserve Account
Amount over the Available Reserve Account Amount.

 

10

 

“Reset Date” means (a) the last day of a
Collection Period, (b) any Addition Date, (c) any date of issuance of
an additional Series of Investor Interests (including the Closing Date) or
any date of issuance of additional Investor Interests of any outstanding Series occurs
or (d) any Removal Commencement Date.

 

“Residual Interestholder” means the holder of the
Residual Interest.

 

“Residual Interestholder’s Percentage” means, with
respect to any day, a percentage (which percentage shall never be less than 0%
nor more than 100%) equal to 100% minus (a) the Floating Allocation
Percentage on such day, when used with respect to Allocable Non-Principal Collections
and Allocable Defaulted Amounts and with respect to Allocable Principal
Collections during the Revolving Period, and (b) the Fixed Allocation
Percentage on such day, when used with respect to Allocable Principal
Collections during a Partial Amortization Period or an Early Amortization
Period.

 

“Revolving Period” means the period beginning at
the close of business on the Closing Date and terminating on the earliest of (a) the
close of business on the day preceding the Commitment Termination Date, (b) the
close of business on the day preceding the day on which a Partial Amortization
Period commences and (c) the close of business on the day preceding the
day on which an Early Amortization Period commences; provided,
however, that, if a Partial Amortization
Period ends and an Early Amortization Period has not commenced, the Revolving
Period will recommence as of the open of business on the day after such Partial
Amortization Period ends and if any Early Amortization Period ends as described
in Section 6.02 hereof, the Revolving Period will recommence as of
the open of business on the day after such Early Amortization Period ends.

 

“Scheduled
Liquidity Termination Date” means April 28, 2006, as such date may be
extended pursuant to the terms of the Class A Note Purchase Agreement.

 

“Series 2001-1” means the Series 2001-1
Notes, the Principal Terms of which are specified in this Series Supplement.

 

“Series 2001-1 Allocation Percentage”
means the Series Allocation Percentage with respect to Series 2001-1.

 

“Series 2001-1 Cut-Off Date” means March 27,
2001.

 

“Series 2001-1 Excess Funding Amount”
means, with respect to the Series 2001-1 Notes, for any day, the
product of (a) the Series 2001-1 Allocation Percentage on such
day and (b) the amount on deposit in the Excess Funding Account (other
than Investment Proceeds) on such day.

 

“Series 2001-1
Excess Non-Principal Collections” means Excess Non-Principal Collections
allocated from other Series in Group One to Series 2001-1
pursuant to Section 4.3 of the Agreement.

 

“Series 2001-1 Noteholders” means the
Holders of the Series 2001-1 Notes.

 

“Series 2001-1 Notes” has the meaning
specified in Section 2.01(a).

 

11

 

“Series 2001-1 Non-Principal Shortfall”
means, with respect to any Payment Date, an amount equal to the excess, if any,
of (a) the full amount required to be paid, without duplication, pursuant
to Sections 4.05(a)(i) through (viii) on such
Payment Date over (b) the Available
Investor Non-Principal Collections (excluding any portion thereof attributable
to Excess Non-Principal Collections) and Investment Proceeds with respect to
such Payment Date.

 

“Series 2001-1
Principal Shortfall” means, with respect to any Payment Date, an amount
equal to the excess, if any, of (a) the full amount required to be paid,
without duplication, pursuant to Section 4.05(a)(i) through (iii) on
such Payment Date over (b) Available Investor Principal Collections with
respect to such Payment Date (excluding any portion thereof attributable to
Reallocated Principal Collections).

 

“Series 2001-1 Stated Maturity Date”
means the Payment Date falling in the 24th calendar month after the
then current Commitment Termination Date.

 

“Series Supplement” has the meaning set forth
in the recitals to this Series Supplement.

 

“Servicer” has the meaning set forth in the
recitals to this Series Supplement.

 

“Servicing Fee Rate” means, with respect to Series 2001-1,
1.5%, or such other percentage as may be approved by the Control Investors in
writing.

 

“Subordinated
Interest Percentage” means, as of any date of determination, a percentage
calculated by dividing (a) an amount equal to (i) the Invested Amount
as of such date minus (ii) the aggregate outstanding principal
balance of the Class A Notes plus the Series 2001-1
Excess Funding Amount on such date by (b) the sum of the aggregate
outstanding principal balance of the Class A Notes plus the
aggregate outstanding principal balance of the Class B Notes as of such
date.

 

“Termination
Date” means, with respect to Series 2001-1, the day after the
Payment Date falling in the 2nd calendar month after the Series 2001-1
Stated Maturity Date.

 

“Trust” has the meaning set forth in the recitals
to this Series Supplement.

 

(b)                                 Notwithstanding
anything to the contrary in this Series Supplement or the other Documents,
the term “Rating Agency” whenever used in
this Series Supplement or such other Basic Documents shall mean (i) with
respect to the assignment of a rating, Moody’s and Standard & Poor’s
and (ii) in all other circumstances with respect to Series 2001-1,
the Series 2001-1 Noteholders. 
As used in this Series Supplement and the other Basic Documents
with respect to Series 2001-1, “highest investment category” means (i) in
the case of Standard & Poor’s, A-l+ or AAA, as applicable, and (ii) in
the case of Moody’s, P-1 or Aaa, as applicable.

 

(c)                                  All
capitalized terms used herein and not otherwise defined herein have the
meanings ascribed to them in the Agreement. 
The definitions in this Section 2.01 are applicable to the
singular as well as to the plural forms of such terms and to the masculine as
well as to the feminine and neuter genders of such terms.

 

12

 

(d)                                 The
words “hereof”, “herein” and “hereunder” and words of similar import when used
in this Series Supplement shall refer to this Series Supplement as a
whole and not to any particular provision of this Series Supplement;
references to any Article, Section or Exhibit are references to
Articles, Sections and Exhibits in or to this Series Supplement unless
otherwise specified; and the term “including” means “including without
limitation”.

 

ARTICLE II

Creation of the Series 2001-1
Notes

 

Section 2.01  Designation.

 

(a)                                  There
is hereby created a Series of Investor Interests to be issued pursuant to
the Indenture and this Series Supplement and shall be comprised of two
classes: (i) the Class A Floating Rate Variable Funding Notes, Series 2001-1
(the “Class A Notes”) and (ii) the Class B Floating Rate
Variable Funding Notes, Series 2001-1 (the “Class B Notes”;
and together with the Class A Notes, the “Series 2001-1
Notes”.

 

(b)                                 If
any term or provision contained herein shall conflict with or be inconsistent
with any term or provision contained in the Indenture, the terms and provisions
of this Series Supplement shall govern.

 

(c)                                  As
described in Section 2.15 of the Indenture, the Series 2001-1
Notes shall be Unregistered Interests.

 

(d)                                 Series 2001-1
shall be included in Group One and shall be a Principal Sharing Series.  Series 2001-1 shall be an Excess
Allocation Series with respect to Group One only.  Series 2001-1 shall not be
subordinated to any other Series.

 

Section 2.02  Form, Execution,
Authentication and Delivery of Series 2001-1 Notes.

 

(a)                                  The
Class A and Class B Notes shall be represented by notes in
substantially the form set forth in Exhibit A, with such
appropriate insertions, omissions, substitutions and other variations as are
required or permitted by the Indenture. 
The terms of the Series 2001-1 Notes set forth in Exhibit A
are part of the terms of this Series Supplement and the Indenture.

 

(b)                                 The
Issuer shall execute and issue and the Indenture Trustee shall authenticate and
deliver the Class A Note with a maximum principal amount of $550,000,000
and the Class B Note with a maximum principal amount of $38,235,294.

 

(c)                                  Each
Class A Note shall be issued in minimum denominations of $1,000,000 and
integral multiples of $1,000 in excess thereof and the Class B Notes shall
be issued in minimum denominations of $1,000.

 

Section 2.03  Issuance of
Additional Series 2001-1 Notes.  At the request of the Series 2001-1
Noteholders from time to time, the Issuer shall issue additional principal
amounts of Series 2001-1 Notes and this Series Supplement may
be amended to reflect such issuance by the Servicer, the Indenture Trustee and
the Issuer, such amendment to be subject to the approval of the Series 2001-1
Noteholders but without the consent of the Residual Interestholder.

 

13

 

(a)                                  Prior
to the issuance of any additional principal amount of Series 2001-1
Notes, the following conditions shall have been satisfied: (i) the Rating
Agency Condition shall have been satisfied with respect to such issuance and
amendment; and (ii) after giving effect to the issuance of such additional
Series 2001-1 Notes, the Subordinated Interest Percentage shall be
equal to or greater than the Required Subordination Percentage; and (iii) the
Net Pool Balance shall be not less than the Required Net Pool Balance after
giving effect to the issuance of such additional Series 2001-1
Notes.

 

(b)                                 The
Issuer hereby covenants to take all action necessary to satisfy the conditions
precedent specified in clause (a) above to effect an increase in the
principal amount of the Series 2001-1 Notes.

 

(c)                                  Upon
the issuance of any additional Series 2001-1 Notes, the Issuer, the
Indenture Trustee and the Servicer shall each make notations in its records to
evidence such increase.

 

Section 2.04  Incremental Fundings.  The Issuer may increase the principal amount
outstanding under the Series 2001-1 Notes by requesting Incremental
Fundings under the Series 2001-1 Notes pursuant to the terms of the
Note Purchase Agreements.

 

Section 2.05  Procedure for Decreasing the Invested
Amount.   On any Payment Date during
the Revolving Period, upon the written request of the Servicer, the Invested
Amount may be reduced out of Principal Collections allocable to this Series of
Notes in accordance with the Basic Documents (a “Decrease”) which
Decrease shall be allocated by the Servicer between (a) the amount to be
used to ratably reduce the outstanding principal balance of the Class A
Notes (such amount, the “Class A Decrease”) and (b) the amount
to be used to reduce the outstanding principal balance of the Class B
Notes (such amount, the “Class B Decrease”) and such allocation
shall be set forth in such notice; provided that (i) the Servicer
shall have given the Indenture Trustee and each applicable Class A
Noteholder (or its agent) irrevocable written notice (effective upon receipt)
thereof, prior to 11:00 a.m., Chicago time,  no later than the third Business Day
preceding the date of such Decrease, if the requested amount of the Class A
Decrease is $20,000,000 or less, or no later than the fifth Business Day
preceding the date of such Decrease in all other cases, (ii) the minimum
amount of such Decrease shall be $1,000,000; (iii) no  Decrease may be made if, after giving effect
to the reduction of the Invested Amount that would result from such requested
Decrease, the Subordinated Interest Percentage would be less than the Required
Subordination Percentage.

 

Section 2.06  Transfer of Class B Notes.  Neither the Class B Notes nor any
interest therein may be sold, pledged, participated, transferred, disposed of
or otherwise alienated (each, a “Transfer”), and the Registrar will not
recognize any Transfer or purported Transfer of a Class B Note, unless
prior to such Transfer or purported Transfer the Indenture Trustee and the
Registrar have received an Opinion of Counsel to the effect that, for federal
income tax purposes, such Transfer will not cause the Issuer to be
characterized as an association or publicly traded partnership as a
corporation.  Any Transfer or purported
Transfer of a Class B Note in violation of the preceding sentence shall be
void ab initio and of no effect.

 

14

 

ARTICLE III

Servicing Fee

 

Section 3.01  Servicing
Compensation.  The Monthly
Servicing Fee with respect to Series 2001-1 (the “Investor Monthly Servicing Fee”) shall be payable
to the Servicer, in arrears, on each Payment Date in respect of any Collection
Period (or portion thereof) occurring prior to the earlier of the first Payment
Date following the Series 2001-1 Stated Maturity Date and the first
Payment Date on which the Invested Amount is permanently reduced to zero, in an
amount equal to the product of (a) the Servicing Fee Rate, (b) the
Invested Amount as of the last day of such Collection Period, (c) a fraction,
the numerator of which is the actual number of days elapsed in the related
Collection Period and the denominator of which is 360; provided,
however, that with respect to the first
Payment Date, the Investor Monthly Servicing Fee shall be equal to the product
of (i) the Servicing Fee Rate, (ii) the Invested Amount as of the
Closing Date and (iii) a fraction, the numerator of which is the number of
days from and including the Closing Date to and including the last day of the
Collection Period immediately preceding the first Payment Date and the
denominator of which is 360.  The
remainder of the  Servicing Fee shall be
paid by the Residual Interestholder and the Interestholders of other Series,
and in no event shall the Series 2001-1 Noteholders, the Trust, the
Indenture Trustee or the Owner Trustee be liable for the share of the Servicing
Fee to be paid by the Residual Interestholder or the Interestholders of other
Series.  The Investor Monthly Servicing
Fee shall be payable to the Servicer solely to the extent amounts are available
for distribution therefor in accordance with the terms of this Series Supplement.

 

ARTICLE IV

Rights of Series 2001-1
Noteholders and

Allocation and Application of Collections

 

Section 4.01  Daily Allocations;
Payments to Residual Interestholder. 
On each Deposit Date, Non-Principal Collections, Principal Collections
and Miscellaneous Payments will be allocated to Series 2001-1 based
on the Series 2001-1 Allocation Percentage and shall be further
allocated and distributed as set forth in this Section 4.01.

 

(a)                                  Non-Principal Collections.  On each Deposit Date, the Servicer shall
allocate to Series 2001-1 and retain in the Collection Account
(until applied as provided herein) an amount equal to the Floating Allocation
Percentage then in effect of Allocable Non-Principal Collections deposited in
the Collection Account for such Deposit Date.

 

(b)                                 Investor
Principal Collections—Revolving Period. 
On each Deposit Date during the Revolving Period, the Servicer shall
cause an amount equal to the Investor Principal Collections for such Deposit
Date to be allocated to Series 2001-1 and such amount shall be
applied as provided in Section 4.05(b) and first, an amount
equal to the Reallocated Principal Collections for the related Payment Date shall
be made available on that Payment Date for application in accordance with Section 4.09,
second, if any other Principal Sharing Series is outstanding and in its
accumulation period or amortization period, shall be retained in the Principal
Account for application, to the extent necessary, as Excess Principal
Collections to other Principal Sharing Series on the related Payment Date,
third, shall be deposited in the Excess Funding Account to the extent necessary
so that the Net Pool Balance is not less than the Required Net Pool Balance,
and fourth, shall be released to the Residual Interestholder.

 

15

 

(c)                                  Investor
Principal Collections—Partial Amortization Period and Early Amortization Period.  On each Deposit Date during the Partial
Amortization Period and the Early Amortization Period, the Servicer shall cause
an amount equal to the Investor Principal Collections for such Deposit Date to
be allocated to Series 2001-1 for application as provided in Section 4.05(c) and
first, an amount equal to the Reallocated Principal Collections for the related
Payment Date shall be made available on that Payment Date for application in
accordance with Section 4.09, second, if any other Principal
Sharing Series is outstanding and in its accumulation period or
amortization period, shall be retained in the Principal Account for
application, to the extent necessary, as Excess Principal Collections to other
Principal Sharing Series on the related Payment Date, third, shall be deposited
in the Excess Funding Account to the extent necessary so that the Net Pool
Balance is not less than the Required Net Pool Balance, and fourth, shall be
released to the Residual Interestholder.

 

(d)                                 Miscellaneous Payments.  On each Deposit Date, the Servicer shall
treat any Allocable Miscellaneous Payments as Investor Principal Collections
and apply them as provided in Section 4.01(b) or 4.01(c),
as appropriate, except that any Allocable Miscellaneous Payments consisting of (i) Adjustment
Payments that were paid after their due date as per Section 3.9(a) of
the Agreement, if the amount of such overdue Adjustment Payments has been
included in the Investor Dilution Amount for any prior Collection Period and (ii) the
interest portion of Transfer Deposit Amounts resulting from the Servicer’s
purchase of Receivables pursuant to Section 3.3(d) of the Agreement,
shall in each case, be treated as Allocable Non-Principal Collections and
applied as provided in Section 4.01(a).

 

The withdrawals to
be made from the Collection Account pursuant to this Section 4.01
do not apply to deposits into the Collection Account that do not represent
Collections, including payment of the Redemption Price for the Series 2001-1
Notes pursuant to Section 10.1(b) of the Indenture and Section 7.01
of this Series Supplement and proceeds from the sale, disposition or
liquidation of Conveyed Receivables pursuant to Section 5.4 of the
Indenture.

 

Section 4.02  Monthly Interest.

 

(a)           The
amount of monthly interest (“Class A Monthly Interest”) accrued during
any Interest Period with respect to the Class A Notes, shall be equal to the
sum of (i) the product of (A) the Class A Interest Rate, (B) the average daily
Outstanding Amount of the Class A Notes during such Interest Period and (C) a
fraction, the numerator of which is the actual number of days elapsed in the
related Interest Period and the denominator of which is 360, and (ii) the
amounts payable pursuant to Section 2.05(c) of the Class A Note Purchase
Agreement; provided, however  that with respect to the
first such Payment Date, Class A Monthly Interest shall be calculated based on
the outstanding principal amount of the Class A Notes on the Closing Date.  On the Determination Date preceding each Payment
Date, the Servicer shall determine the excess, if any (the “Class A Interest
Shortfall”), of (x) the aggregate Class A Monthly Interest for the Interest
Period applicable to such Payment Date over (y) the amount that will be
available to be distributed to Class A Noteholders on such Payment Date in
respect thereof pursuant to this Series Supplement.  If the Class A Interest Shortfall with
respect to any Payment Date is greater than zero, an additional amount (“Class
A Additional Interest”) equal to the product of (A) the LIBO Rate for the Interest
Period commencing on such Payment Date (or, for subsequent Interest Periods,
the LIBO Rate for such subsequent Interest Period), (B) such Class A Interest

 

16

 

Shortfall (or the portion thereof that has not been paid to Class A
Noteholders and (C) a fraction, the numerator of which is the amount of
days elapsed in such Interest Period (or in a subsequent Interest Period) and
the denominator of which is 360, shall be payable as provided herein with respect
to Class A Notes on each Payment Date following such Payment Date to and
including the Payment Date on which such Class A Interest Shortfall is
paid to Class A Noteholders. 
Notwithstanding anything to the contrary herein, Class A Additional
Interest shall be payable or distributed to Class A Noteholders only to
the extent permitted by applicable law.

 

(b)                                 The
amount of monthly interest (“Class B Monthly Interest”) accrued
during any Interest Period with respect to the Class B Notes shall be
equal to the product of (A) the Class B Interest Rate in effect on
the first Business Day of such Interest Period, (B) the Outstanding Amount
of the Class B Notes as of the close of business on the preceding Payment
Date (after giving effect to all repayments of principal made to Class B
Noteholders on such preceding Payment Date, if any) and (C) a fraction,
the numerator of which is the actual number of days elapsed in the related
Interest Period and the denominator of which is 360; provided, however, that
with respect to the first such Payment Date, Class B Monthly Interest
shall be calculated based on the outstanding principal amount of the Class B
Notes on the Closing Date.  On the
Determination Date preceding each Payment Date, the Servicer shall determine
the excess, if any (the “Class B Interest
Shortfall”), of (x) the aggregate Class B Monthly Interest
for the Interest Period applicable to such Payment Date over (y) the
amount that will be available to be distributed to Class B Noteholders on
such Payment Date in respect thereof pursuant to this Series Supplement.

 

Section 4.03  Determination of
Monthly Principal.  Beginning
with the Payment Date in the month following the month in which a Partial
Amortization Period or an Early Amortization Period begins, the amount of
monthly principal with respect to Series 2001-1 on each Payment Date
(the “Monthly Principal”) shall be equal
to, (a) in the case of a Partial Amortization Period  the lesser of (i) the Available Investor
Principal Collections on deposit in the Collection Account for the preceding
Collection Period and (ii) an amount equal to the aggregate Group Purchase
Limit Excess that exists prior to any deposit into the Collection Account on
such Payment Date and (b) in the case of an Early Amortization Period the
lesser of (i) the Available Investor Principal Collections on deposit in
the Collection Account with respect to such Payment Date and (ii) an
amount equal to the Invested Amount (after taking into account any adjustments
to be made to the Invested Amount on such Payment Date pursuant to Section 4.07)  prior to any deposit into the Collection
Account on such Payment Date.

 

Section 4.04  Establishment of
Excess Funding Account.  The
Issuer has previously caused to be established and covenants to hereafter
maintain the Collection Account and the Excess Funding Account.  The Issuer hereby establishes and covenants
to hereafter maintain the Reserve Account which shall be a Trust Account and an
Eligible Deposit Account in accordance with Section 4.1(b) of
the Agreement under the sole dominion and control of the Indenture Trustee for
the benefit of the Series 2001-1 Noteholders and the Residual
Interestholder.

 

Section 4.05  Application of
Collections.

 

(a)                                  Available
Investor Non-Principal Collections and Investment Proceeds.  On each Payment Date, the Servicer shall
direct the Indenture Trustee in writing to apply an amount equal

 

17

 

to the sum of Available Investor Non-Principal
Collections and any Investment Proceeds deposited in the Collection Account for
the related Collection Period for distribution, to the extent of funds
available therefor, in the following priority:

 

(i)                                     first, an amount
equal to the Investor Monthly Servicing Fee for such Payment Date (to the
extent not previously paid), plus any unpaid Servicer Advances and accrued and
unpaid interest thereon, shall be distributed to the Servicer;

 

(ii)                                  second, an amount equal to Class A Monthly
Interest for such Payment Date, plus the
amount of any Class A Monthly Interest previously due but not distributed
to the Class A Noteholders on a prior Payment Date, plus
the amount of any Class A Additional Interest for such Payment Date and
any Class A Additional Interest previously due but not distributed to the Class A
Noteholders on a prior Payment Date, shall be paid to the Class A
Noteholders; plus the Other Monthly Amounts for such Payment Date plus Other
Monthly Amounts previously due but which remain repaid;

 

(iii)                               third,
an amount equal to the Investor Defaulted Amount and the Investor Dilution
Amount, if any, for such Payment Date shall be treated as a portion of
Available Investor Principal Collections for such day;

 

(iv)                              fourth, an amount equal to the aggregate amount
of Investor Charge-Offs that have not been previously reimbursed as provided in
Section 4.07 and this Section 4.05(a)(iv) shall be
treated as Available Investor Principal Collections with respect to such day
and shall increase the Invested Amount;

 

(v)                                 fifth,
an amount, if any, equal to the amount required to be deposited in the Reserve
Account pursuant to Section 4.12 shall be deposited into the
Reserve Account during the Revolving Period;

 

(vi)                              sixth,
an amount equal to Class B Monthly Interest for such Payment Date, plus the amount of any Class B Monthly
Interest previously due but not distributed to the Class B Noteholders on
a prior Payment Date shall be paid to the Class B Noteholders; and

 

(vii)         seventh, if the Early
Amortization Period has not occurred and is not continuing, the balance, if
any, will constitute a portion of Excess Non-Principal Collections for such
Payment Date and will be applied in accordance with Section 4.3 of the
Agreement;

 

(viii)        eighth, during the Early
Amortization Period, the remaining balance, if any, will be used to make
principal payments first, to the Class A Noteholders until the Outstanding
Amount of the Class A Notes is paid in full and second, to the Class B
Noteholder until the Outstanding Amount of the Class B Notes is paid in full;

 

(ix)                                ninth, the balance, if any, shall be distributed
to the Residual Interestholder.

 

18

 

On
each Payment Date, to the extent that there is a shortfall (a “Payment Date
Shortfall”) in the amounts to be paid or deposited pursuant to clause(a)(ii) of
this Section 4.05, the Paying Agent on behalf of the Issuer, shall
withdraw from the Collection Account, from any Servicer Advance on deposit
therein, an amount equal to the lesser of (i) the Payment Date Shortfall
for such Payment Date and (ii) the product of (x) such Servicer Advance
and (y) the Floating Allocation Percentage for the previous Collection Period,
and apply such withdrawn amount to make the payments and deposits contemplated
by such clause(a)(ii) of this Section 4.05.

 

(b)                                 Available
Investor Principal Collections – Revolving Period.  On each Payment Date during the Revolving
Period, an amount equal to the Available Investor Principal Collections
deposited into the Collection Account for the related Collection Period shall
be applied as follows:

 

first, such amount shall be deposited into the
Excess Funding Account to the extent necessary so that the amount on deposit in
the Excess Funding Account plus the Net Pool Balance is at least equal to the
Required Net Pool Balance;

 

second,
to the Class A Noteholders, the amount of any Class A Decrease (which
satisfies the requirements of Section 2.05) to reduce the
outstanding principal amount of the Class A Notes;

 

third,
to the Class B Noteholders, the amount of any Class B Decrease (which
satisfies the requirements of Section 2.05) to reduce the
outstanding principal amount of the Class B Notes;

 

fourth, subject to the prior payment of any
outstanding unpaid obligations of the Issuer pursuant to Section 6.7
of the Indenture, any remaining amount shall be treated as Excess Principal
Collections and applied in accordance with Section 4.3 of the Agreement.

 

(c)                                  Available
Investor Principal Collections – Partial Amortization Period or Early
Amortization Period.  On each Payment
Date during a Partial Amortization Period or an Early Amortization Period, an
amount equal to Available Investor Principal Collections deposited in the
Collection Account for the related Collection Period shall be applied as
follows:

 

(i)                                     first,
to the Class A Noteholders (x) during a Partial Amortization Period until
no Group Purchase Limit Excess exists (with application of such amount being
made pro rata among the Class A Noteholders based upon each of their
respective Group Purchase Limit Excess, if any, rather than based upon the
outstanding principal amount of the Class A Notes) and (y) during an Early
Amortization Period until the Outstanding Amount of the Class A Notes has
been paid in full;

 

(ii)                                  second,
to the Class B Noteholders (x) during a Partial Amortization Period until
the outstanding principal amount of the Class B Notes has been reduced to
the extent necessary to reduce the Subordinated Interest Percentage to the
Required Subordination Percentage (but not less than the Required Subordination
Percentage) and

 

19

 

(y) during an Early Amortization Period until the Outstanding Amount of
the Class B Notes has been paid in full; and

 

third,
after giving effect to clauses (i) and (ii) above and subject to
prior payment of any outstanding unpaid obligations of the Issuer pursuant to Section 6.7
of the Indenture, any remaining amount shall be treated as Excess Principal
Collections and applied in accordance with Section 4.3 of the Agreement.

 

(d)                                 Payment
of Available Investor Principal Collections.  On the earlier to occur of (i) the first
Payment Date during the Early Amortization Period and (ii) the Commitment
Termination Date, the Servicer shall pay the amount determined under Section 4.05(c)(i) and
(c)(ii) first, to the Class A Noteholders, until the
Outstanding Amount of the Class A Notes is paid in full and second, to the
Class B Noteholder until the Outstanding Amount of the Class B Note
is paid in full.

 

Section 4.06  Distributions to Series 2001-1
Noteholders.   On each
Payment Date during a Partial Amortization Period or an Early Amortization
Period, the Servicer shall direct the Indenture Trustee in writing to make the
following distributions at the following times from the Collection Account, the
Reserve Account and the Excess Funding Account:

 

(a)                                  on
each Payment Date, all amounts on deposit in the Collection Account that are
payable to the Class A Noteholders with respect to accrued interest, other
amounts and principal shall be distributed to the Class A Noteholders in
accordance with Section 4.05; and

 

(b)                                 on
each Payment Date, all amounts on deposit in the Collection Account that are
payable to the Class B Noteholders with respect to accrued interest and
principal shall be distributed to the Class B Noteholders in accordance
with Section 4.05.

 

Section 4.07  Investor Charge-Offs.  On each Determination Date, the Servicer
shall calculate the Investor Defaulted Amount and the Investor Dilution Amount,
if any, for the related Payment Date. 
If, on any Payment Date the sum of the Investor Defaulted Amount,
Investor Dilution Amount and Reallocated Principal Collections for such Payment
Date exceeds the amount of Available Investor Non-Principal Collections and the
Investment Proceeds allocated with respect thereto pursuant to Section 4.05(a)(iv) on
such Payment Date and amounts withdrawn from the Reserve Account on such
Payment Date (after giving effect to the allocations, distributions,
withdrawals and deposits to be made on such Payment Date), the Invested Amount
shall be reduced by the amount of such excess, but not by more than the lesser
of (i) the sum of the Investor Defaulted Amount, Investor Dilution Amount
and Reallocated Principal Collections for such Payment Date, and (ii) the
Invested Amount on such Payment Date (an “Investor
Charge-Off”).  Investor Charge-Offs
shall thereafter be reimbursed and the Invested Amount increased (but not by an
amount in excess of the aggregate unreimbursed Investor Charge-Offs on any
Payment Date) by the amount of Available Investor Non-Principal Collection and
Investment Proceeds allocated and available for that purpose pursuant to Section 4.05(a)(iv).

 

Section 4.08  Excess Funding
Account.  On the business day
after the last day of the Revolving Period, the Series 2001-1 Excess
Funding Amount shall, pursuant to Servicer written

 

20

 

instruction, be deposited in the Collection Account on
such date and distributed in accordance with Section 4.06.  Thereafter, the Series 2001-1
Noteholders shall not be entitled to any funds on deposit in the Excess Funding
Account.

 

Section 4.09  Reallocated Principal Collections.  On each Payment Date, the Servicer shall
apply Reallocated Principal Collections with respect to that Payment Date to
fund any deficiency pursuant to and in the priority set forth in Sections
4.05(a)(i) through (iii). On each Payment Date, the Invested
Amount shall be reduced by the amount of Reallocated Principal Collections for
such Payment Date.  Reallocated Principal
Collections shall become part of Investor Charge-Offs pursuant to Section 4.07.

 

Section 4.10  Excess Non-Principal Collections.  Series 2001-1 shall be an Excess
Allocation Series with respect to Group One only. Subject to Section 4.3
of the Agreement, Excess Non-Principal Collections with respect to the Excess
Allocation Series in Group One for any Payment Date will be allocated to Series 2001-1
in an amount equal to the product of (x) the aggregate amount of Excess
Non-Principal Collections with respect to all the Excess Allocation Series in
Group One for the related Payment Date and (y) a fraction, the numerator of
which is the Series 2001-1 Non-Principal Shortfall for such Payment
Date and the denominator of which is the aggregate amount of Non-Principal
Shortfalls for all the Excess Allocation Series in Group One for such
Payment Date.

 

Section 4.11  Excess Principal Collections.  Subject to Section 4.3 of the Agreement,
Excess Principal Collections allocable to Series 2001-1 on any
Payment Date will be equal to the product of (x) the aggregate amount of Excess
Principal Collections with respect to all Principal Sharing Series for
such Payment Date and (y) a fraction, the numerator of which is the Series 2001-1
Principal Shortfall for such Payment Date and the denominator of which is the
aggregate amount of Principal Shortfalls for all the Series which are
Principal Sharing Series for such Payment Date.

 

Section 4.12  Reserve Account.

 

(a)                                  On
each Payment Date, if the aggregate amount of Available Investor Non-Principal
Collections is less than the aggregate amount required to be paid or deposited
pursuant to clauses (i) through (iii) of Section 4.05(a),
the Issuer shall withdraw from the Reserve Account the amount of such
deficiency up to the Available Reserve Account Amount and shall apply such
amount in accordance with such clauses of Section 4.05(a).

 

(b)                                 On
the Series 2001-1 Stated Maturity Date, and on any day following the
occurrence of an Event of Default with respect to Series 2001-1 that
has resulted in the acceleration of the Series 2001-1 Notes, the
Servicer shall withdraw from the Reserve Account the Available Reserve Account
Amount for payment to the Series 2001-1 Noteholders to fund any
shortfalls in amounts owed to the Series 2001-1 Noteholders.

 

(c)                                  If
on any Payment Date, after giving effect to all withdrawals from the Reserve
Account, the Available Reserve Account Amount is less than the Required Reserve
Account Amount then in effect, Available Investor Non-Principal Collections
shall be deposited into the

 

21

 

Reserve Account pursuant to Section 4.05(a)(v) up
to the amount of the Reserve Account Deficiency.

 

(d)                                 If,
after giving effect to all deposits to and withdrawals from the Reserve Account
with respect to any Payment Date, the amount on deposit in the Reserve Account
exceeds the Required Reserve Account Amount, the Servicer shall withdraw an
amount equal to such excess from the Reserve Account and distribute such amount
to the Residual Interestholder on the related Payment Date. On the date on
which the Reserve Account has been terminated, after giving effect to any
withdrawal on such date pursuant to Section 4.12(a) and making
any payments to the Series 2001-1 Noteholders required pursuant to
this Indenture, all amounts then remaining in the Reserve Account shall be
released to the Residual Interestholder.

 

(e)                                  The
Reserve Account will terminate on the earliest to occur of (i) the date on
which the Outstanding Amount of the Series 2001-1 Notes has been
reduced to zero and all other amounts payable to the Series 2001-1
Noteholders have been paid in full; (ii) the Series 2001-1
Stated Maturity Date; and (iii) the termination of the Issuer.

 

Section 4.13  Investment of Amounts on Deposit in Series Accounts.

 

(a)                                  To
the extent there are uninvested amounts deposited in the Series Accounts,
the Servicer shall cause such amounts to be invested in Eligible Investments
selected by the Servicer that mature no later than the following Payment Date.

 

(b)                                 On
each Payment Date, the Investment Proceeds, if any, accrued since the preceding
Payment Date on funds on deposit in the Reserve Account shall be treated as
Available Investor Non-Principal Collections and paid or deposited in
accordance with Section 4.05(a). 
Subject to the foregoing, for purposes of determining the availability
of funds or the balance in the Reserve Account for any reason under this Series Supplement,
all Investment Proceeds shall be deemed not to be available or on deposit.

 

ARTICLE V

Distributions and Reports to Series 2001-1
Noteholders

 

Section 5.01  Distributions.

 

(a)                                  On
each Payment Date, the Indenture Trustee shall distribute to each Series 2001-1
Noteholder of record on the preceding Record Date (other than as provided in Section 2.7(c) of
the Indenture with respect to a final distribution) such Interestholder’s pro
rata share (based on the aggregate fractional undivided interests represented
by the Series 2001-1 Notes held by such Interestholder, except
during a Partial Amortization Period to the extent provided in Section 4.05(c)(i))
of the amounts on deposit in the Collection Account, the Excess Funding Account
or the Reserve Account as is payable to the Series 2001-1
Noteholders on such Payment Date according to the written instructions of the
Servicer given pursuant to Sections 4.05 and 4.06.

 

(b)                                 Except
as provided in Section 2.7(c) of the Indenture with respect to
a final distribution, distributions to Series 2001-1 Noteholders
hereunder shall be made in immediately available funds wired to each Series 2001-1
Interestholder in accordance with such

 

22

 

Interestholder’s wiring information appearing in the
Register without presentation or surrender of any Series 2001-1
Notes or the making of any notation thereon.

 

Section 5.02  Reports and
Statements to Series 2001-1 Noteholders.

 

(a)                                  At
least two Business Days prior to each Payment Date, the Servicer will provide
to the Indenture Trustee, and on each such Payment Date, the Indenture Trustee
shall forward to each Series 2001-1 Interestholder of record (the “Payment Date Statement”), a statement
substantially in the form of Exhibit B  prepared
by the Servicer setting forth certain information relating to the Issuer and
the Series 2001-1 Notes.

 

(b)                                 A
copy of each statement provided pursuant to paragraph (a) will be
made available for inspection at the Corporate Trust Office.

 

(c)                                  Within
the prescribed period for tax reporting purposes after the end of each calendar
year, beginning with calendar year 2001, the Indenture Trustee shall furnish or
cause to be furnished to each Person who at any time during the preceding
calendar year was a Series 2001-1 Noteholder and the Residual
Interestholder, a statement prepared by the Servicer containing such
information as may be required by the Code and applicable U.S. treasury
regulations to enable the Series 2001-1 Noteholders or Residual
Interestholder to prepare their federal income tax returns.  Such obligation of the Indenture Trustee
shall be deemed to have been satisfied to the extent that substantially
comparable information shall be provided by the Indenture Trustee pursuant to
any requirements of the Code as from time to time in effect.

 

ARTICLE VI

Early Amortization Events

 

Section 6.01  Additional Early
Amortization Events.

 

(a)                                  In
addition to the Early Amortization Events set forth in Section 5.17
of the Indenture and except as provided in Section 6.01(b), the
occurrence of any of the following events shall, immediately upon the
occurrence thereof without notice or other action on the part of the Indenture
Trustee or the Series 2001-1 Noteholders, be deemed to be an Early
Amortization Event solely with respect to Series 2001-1:

 

(i)                                     on
any Determination Date, the average of the Monthly Payment Rates for the three
preceding Collection Periods is less than 12% for the Determination Dates
falling in February through May, or less than 14% for the Determination
Date falling in June, less than 16% for the Determination Dates falling in July through
October, or less than 14% for the Determination Dates falling in November through
January (or a lower percentage if the Rating Agency Condition has been
satisfied with respect to that lower percentage); or;

 

(ii)                                  any
Servicing Default occurs;

 

(iii)                               the occurrence of an
Event of Default with respect to the Series 2001-1 Notes and the
declaration that the Series 2001-1 Notes are due and payable
pursuant to Section 5.2 of the Indenture;

 

23

 

(iv)                              on
the Commitment Termination Date, the Series 2001-1 Notes are not
paid in full;

 

(v)                                 the
failure by any Transaction Party that is party to the Class A Note
Purchase Agreement, any Fee Letter or the Repurchase Agreement (the “Specified
Transaction Documents”) (i) to make any payment or deposit required by the
applicable Specified Transaction Document on or before the date occurring three
Business Days after the date such payment or deposit is required to be made
therein; or (ii) to observe or perform in any material respect any other
covenants or agreements set forth in the applicable Specified Transaction
Document which failure continues unremedied for a period of 30 days after
written notice of such failure to the applicable Transaction Party requiring
the same to be remedied; or (iii) duly to observe or perform in any
material respect any other covenants or agreements of the Transaction Parties
set forth in the applicable Specified Transaction Document, which failure in
the case of this clause (iii) has a Material Adverse Effect and continues
unremedied for a period of 30 days after the date on which written notice of
such failure to the applicable Transaction Party, requiring the same to be
remedied;

 

(vi)                              the
Subordinated Interest Percentage is less than the Required Subordination
Percentage for five consecutive Business Days; or

 

(vii)                           on any Payment Date, (A) there
exists (1) Investor Charge-Offs or (2) a withdrawal from the Reserve
Account, in each case relating to a shortfall in Non-Principal Collections on a
prior Payment Date that has not been reimbursed as of such Payment Date after
application of all Collections on such date or (B) (1) Investor
Charge-Offs or (2) a withdrawal from the Reserve Account in an aggregate
amount in excess of 0.25% of the Outstanding Amount of the Class A Notes
on such date, in each case, relating to a shortfall in Non-Principal
Collections; or

 

(viii)                        on any Payment Date after the
occurrence of an Enhancement Trigger Event under clause (b) of the
definition thereof, the Seller has not deposited an amount into the Reserve
Account equal to 1.00% of the Outstanding Amount of the Class A Notes on
such date; or

 

(ix)                                on
any Payment Date, the amount on deposit in the Reserve Account is less than the
Required Reserve Account Amount for such Payment Date after application of all
Collections on such date and for the three consecutive Payment Dates
immediately preceding such Payment Date.

 

(b)                                 In
the case of any event described in Sections 6.01(a)(ii) above or in
Section 5.17(d) or (e) of the Indenture, an Early Amortization
Event with respect to Series 2001-1 shall be deemed to have occurred
only if either (i) the Indenture Trustee or (ii) the Control
Investors, by written notice to the Issuer, the Seller and the Servicer (and the
Indenture Trustee, if such notice is given by Series 2001-1
Noteholders) declare that an Early Amortization Event has occurred as of the
date of such notice.  In the case of any
other event described above or in Section 5.17 of the Indenture, an Early
Amortization Event will occur without any notice or

 

24

 

other action on the part of the Indenture Trustee or
the Series 2001-1 Noteholders immediately upon the occurrence of
such event.

 

Section 6.02  Recommencement of
the Revolving Period.  If any
Early Amortization Event (other than an Early Amortization Event described in Section 5.17(a) of
the Indenture) occurs, the Revolving Period shall recommence following
satisfaction of the Rating Agency Condition; provided,
however, that no other Early Amortization
Event that has not been cured or waived as described herein has occurred and
the scheduled termination of the Revolving Period has not occurred.

 

ARTICLE VII

Optional Purchase

 

Section 7.01  Optional Purchase.

 

(a)                                  On
any Payment Date occurring after the date on which the aggregate outstanding
principal amount of the Series 2001-1 Notes is reduced to an amount
less than or equal to 10% of the initial outstanding principal amount of the Series 2001-1
Notes, the Servicer shall have the option to purchase the Series 2001-1
Notes in whole but not in part at a purchase price equal to the Redemption
Price for such Payment Date.

 

(b)                                 The
Servicer shall give the Indenture Trustee at least 20 days’ prior written
notice of the Payment Date on which the Servicer intends to exercise such
purchase option.  Not later than
12:00 noon, New York City time, on such Payment Date, the Servicer shall
deposit an amount equal to the sum of (i) the Series 2001-1
Excess Funding Amount (in a maximum amount not exceeding the Redemption Price),
(ii) the Reserve Account Amount (in a maximum amount not exceeding the
Redemption Price) and (iii) the excess, if any, of the Redemption Price
over the amount calculated in clauses (i) and (ii) into the
Collection Account in immediately available funds.  Such purchase option is subject to payment in
full of the Redemption Price.  The
Redemption Price shall be distributed as set forth in Section 8.01.

 

ARTICLE VIII

Final Distributions

 

Section 8.01  Acquisition of Notes
Pursuant to Section 10.1 of the Indenture; Distributions pursuant to Section 7.01
of this Series Supplement or Section 5.4 of the Indenture.

 

(a)                                  The
amount to be paid by the Seller to the Collection Account with respect to Series 2001-1
Notes in connection with a redemption of the Series 2001-1 Notes
pursuant to Section 10.1(b) of the Indenture shall equal the
Redemption Price for the Payment Date on which such redemption occurs.

 

(b)                                 With
respect to the Redemption Price deposited into the Collection Account pursuant
to Section 7.01 or 8.01(a) of this Series Supplement
or any amount distributable to the Series 2001-1 Noteholders
pursuant to Section 5.4(a)(iv) or 5.4(b) of the
Indenture following a sale of Receivables by the Issuer, the Indenture Trustee
shall, not later than 12:00 noon, New York City time, on the Payment Date
on which such amounts are deposited (or, if such date is not a Payment Date, on
the immediately following Payment Date), based upon information

 

25

 

provided by the Servicer (which shall include specific
instructions with respect to the following amounts), make distributions of the
following amounts (in the priority set forth below and, in each case, after
giving effect to any deposits and distributions otherwise to be made on such
date) in immediately available funds:  (i) first,
(x) an amount equal to the outstanding principal amount of the Class A
Notes shall be distributed to the Class A Noteholders and (y) an
amount equal to the sum of (A) Class A Monthly Interest for such
Payment Date, (B) any Class A Monthly Interest previously due but not
distributed on a prior Payment Date, and (C) the amount of Class A
Additional Interest, if any, for such Payment Date and any Class A
Additional Interest previously due but not distributed on a prior Payment Date,
shall be distributed to the Class A Noteholders and (D) any Other
Monthly Amounts owing to the Class A Noteholders which are due and unpaid;
(ii) second, an amount equal to the outstanding principal amount of the Class B
Notes shall be distributed to the Class B Noteholders and (y) an
amount equal to the sum of (A) Class B Monthly Interest for such
Payment Date and (B) any Class B Monthly Interest previously due but
not distributed on a prior Payment Date shall be distributed to the Class B
Noteholders; and (iii) third, any excess will be released to the Residual
Interestholder.

 

(c)                                  Notwithstanding
anything to the contrary in this Series Supplement or the Indenture, any
distribution made pursuant to Section 8.01(b) shall be deemed
to be a final distribution pursuant to Section 2.7(c) of the
Indenture with respect to the Series 2001-1 Notes.

 

Section 8.02  Series Termination.  On the Series 2001-1 Stated
Maturity Date, if  the Invested
Amount  is greater than zero  (after giving effect to deposits and
distributions otherwise to be made on such Series 2001-1 Stated
Maturity Date), the Indenture Trustee will sell or cause to be sold on such Series 2001-1
Stated Maturity Date in accordance with the Indenture an amount of Principal
Receivables (or interests therein) equal to 110% of the Invested  Amount 
on such Series 2001-1 Stated Maturity Date  (after giving effect to such deposits and
distributions); provided, however, that in no event shall the
amount of Principal Receivables sold exceed the product of the Series 2001-1
Allocation Percentage (for the Collection Period in which such Payment Date
occurs) and the Principal Receivables on such Payment Date.  The proceeds from such sale shall be paid
first, to the Class A Noteholders until the outstanding principal amount
and unpaid interest on the Class A Notes is paid in full; and second, to
the Class B Noteholders until the outstanding principal amount and unpaid
interest on the Class B Notes is paid in full; and then any remaining
proceeds shall be allocated and distributed as Principal Collections in
accordance with the terms of Section 4.06.  On and after the Termination Date, no
distributions will be made pursuant to this Supplement except as otherwise
expressly provided for in the Indenture.

 

ARTICLE IX

Other Series Provisions

 

Section 9.01  Additional Covenants.  Except for the conveyance hereunder to the
Indenture Trustee, the Issuer shall not sell, pledge, assign or transfer to any
other Person any rights it might have to funds on deposit in the Collection
Account, the Reserve Account or the Excess Funding Account or Investment
Proceeds with respect thereto.

 

Section 9.02  Tax Treatment of the
Series 2001-1 Notes. 
The Issuer and the purchasers of the Class A Notes intend, and will
take actions consistent with and refrain from any action

 

26

 

inconsistent with the intention, that the Class A
Notes be treated as indebtedness which is solely secured by the Collateral for
all federal, state, local and foreign income and franchise tax purposes and
that the Issuer be disregarded as an entity separate from the Seller for
federal income tax purposes.  The Issuer,
by entering into this Series Supplement, and each Class A Noteholder,
by its acceptance of a Class A Note, agrees to treat the Class A
Notes for federal, state and local income, single business and franchise tax
purposes as indebtedness of the Issuer.

 

Section 9.03  Supplemental Indentures.  Is expressly understood by the parties hereto
that with respect to Series 2001-1, no action may be taken under Section
9.1(b) of the Indenture unless the Rating Agency Condition has been
satisfied.

 

Section 9.04  Waiver of Past Defaults.  Any default by the Servicer as described in Section
7.4 of the Agreement may be waived by only by the Control Investors.

 

ARTICLE X

Miscellaneous Provisions

 

Section 10.01 
Ratification of Agreement.  As supplemented by this Series Supplement,
the Agreement is in all respects ratified and confirmed and the Agreement as so
supplemented by this Series Supplement shall be read, taken and construed
as one and the same instrument.

 

Section 10.02 
Counterparts.  This Series Supplement may be executed
by the parties hereto in any number of counterparts, each of which shall be an
original, but all of which together shall constitute one and the same
instrument.

 

Section 10.03 
GOVERNING LAW.  THIS SERIES SUPPLEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE
CHOICE OF LAW PRINCIPLES THEREOF (OTHER THAN SECTION 5-1401 OF THE
NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF
THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

Section 10.04 
Amendment and Restatement.  
This Series Supplement amends, restates and supersedes in its
entirety the Existing Supplement and shall not constitute a novation
thereof.  It is the intent of each of the
parties hereto that all references to the Existing Supplement in any
Transaction Document to which such party is a party and which becomes or
remains effective on or after the date hereof shall be deemed to mean and be
references to this Series Supplement.

 

27

 

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

 

	
   

  	
  TEXTRON FINANCIAL FLOORPLAN

  
	
   

  	
  MASTER NOTE TRUST (formerly known

  
	
   

  	
  as Textron Financial Corporation Receivables

  
	
   

  	
  Trust 2001-CP-1), as Issuer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  SunTrust Delaware Trust Company,

  
	
   

  	
   

  	
  not in its individual capacity but

  
	
   

  	
   

  	
  solely as Owner Trustee on behalf

  
	
   

  	
   

  	
  of the Trust

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Jack Ellerin

  	
   

  
	
   

  	
   

  	
  Name: Jack Ellerin

  
	
   

  	
   

  	
  Title: Trust Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TEXTRON FINANCIAL CORPORATION,

  
	
   

  	
  as Servicer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eric Karlson

  	
   

  
	
   

  	
  Name: Eric Karlson

  
	
   

  	
  Title: Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
  not in its individual capacity but solely

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ryan Bittner

  	
   

  
	
   

  	
  Name: Ryan Bittner

  
	
   

  	
  Title: Assistant
  Treasurer

  
							

 

Signature Page to Amended and Restated Series 2001-1
Supplement

 

 

EXHIBIT A

 

FORMS OF SERIES 2001-1 NOTES

 

[attached]

 

 

FORM OF
CLASS A NOTE

 

THIS NOTE HAS NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED EXCEPT (A) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS
A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE
SECURITIES ACT IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A WHO IS
PURCHASING THE NOTES FOR HIS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER OR (B) TO AN ACCREDITED INVESTOR THAT IS NOT A
QUALIFIED INSTITUTIONAL BUYER (SUBJECT IN THE CASE OF CLAUSE (B) TO
RECEIPT BY THE INDENTURE TRUSTEE OF SUCH CERTIFICATES AND OTHER DOCUMENTS AS
ARE REQUIRED UNDER THE INDENTURE), IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION.

 

 

TEXTRON FINANCIAL FLOORPLAN MASTER NOTE TRUST

CLASS A FLOATING RATE VARIABLE FUNDING NOTE,

SERIES 2001-1

 

 

	
  Note
  A-[   ]

  	
   

  	
  The Amount Set
  Forth on Schedule 1 as the

  “Current Maximum Principal Amount”

  

 

TEXTRON
FINANCIAL FLOORPLAN MASTER NOTE TRUST, a Delaware statutory trust, (the “Issuer”)
for value received, hereby promises to pay to [NAME OF HOLDER], or registered
assigns, upon presentation and surrender to this Note (except as otherwise
permitted by the Indenture referred to below), the principal sum equal to the
Maximum Principal Amount (or such lesser amount as shall equal the aggregate
outstanding principal under this Note) on the Series 2001-1 Stated
Maturity Date except as provided in the Indenture referred to herein.

 

This Note is one
of a duly authorized issue of Class A Floating Rate Variable Funding
Notes, Series 2001-1 (the “Class A Notes”) issued and to be
issued under the Amended and Restated Indenture dated as of May 26, 2005
(as supplemented by the Amended and Restated Series 2001-1
Supplement dated as of May 26, 2005 (as such Series 2001-1
Supplement may be amended, restated, supplemented or otherwise modified from
time to time, the “Supplement”) and  as
it may be amended, restated, supplemented or otherwise modified from time to
time in accordance with its terms, the “Indenture”) among the Issuer and The
Bank of New York, a New York banking corporation, as Indenture Trustee (the “Indenture
Trustee”, which term includes any successor trustee as permitted under the
Indenture).  Reference is hereby made to
the Indenture  for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of
the Issuer, the Indenture Trustee and the Holders of the Class A Notes and
the terms upon which the Class A Notes are, and are to be, authenticated
and delivered.  Capitalized terms used
herein and not otherwise defined shall have the meanings set forth in the
Indenture or the Supplement or the Class A Note Purchase Agreement as the
case may be.

 

The Issuer
promises to pay interest, if any, at the Class A Interest Rate from time
to time, on the thirteenth calendar day of each month, or, if such day is not a
Business Day, on the next succeeding Business Day, commencing [Month] 13,
[Year] (each, a “Payment Date”) in each case on the outstanding principal
balance hereunder until such outstanding principal balance is paid or until the
Termination Date as provided in the Supplement. 
To the extent lawful and enforceable, interest on any Class A
Interest Shortfall shall accrue hereon to the extent provided in the
Supplement.  The interest and other
amounts so payable, and punctually paid, on any Payment Date will, as provided
in the Indenture, be paid to the Person in whose name this Note (or one or more
predecessor Notes) is registered at the close of business on the Record Date
for such interest, which shall be the last day of the Collection Period preceding
such Payment Date.

 

 

The principal of
this Note shall be payable on each Payment Date on which funds are permitted or
required to be used for such purpose in accordance with the Supplement and the
Indenture.  The principal of this Note
shall be due and payable no later than the Series 2001-1 Stated Maturity
Date, unless previously repaid prior thereto as described in the Indenture.

 

The obligations of
the Issuer under this Note and the Indenture are limited recourse obligations
of the Issuer as provided in the Indenture. 
The payments of principal of, and interest and other amounts with
respect to, this Note are subject to the priority of payments as provided in
the Indenture and Supplement.

 

Unless the
certificate of authentication hereon has been executed by the Indenture Trustee
by the manual signature of one of its Authorized Officers, this Note shall not
be entitled to any benefit under the Indenture or be valid or obligatory for
any purpose.

 

If an Event of
Default shall occur and be continuing, this Note may become or be declared due
and payable in the manner and with the effect provided in the Indenture.

 

Title to Notes
shall pass solely by registration in the Register kept by the Registrar, which
for the Class A Notes initially shall be the Indenture Trustee.

 

No service charge
shall be made for any registration of transfer or exchange of this Note, but
the Indenture Trustee or any Registrar may require payment 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 all fees and expenses of
the Indenture Trustee) connected therewith.

 

The Issuer has
structured the Indenture and the Class A Notes with the intention that the
Class A Notes will qualify under applicable tax law as indebtedness, and
the Issuer, the Residual Interestholder, the Servicer and each Holder of a Class A
Note or holder of any interest in a Class A Note by acceptance of its Class A
Note (or interest therein), agrees to treat and to take no action inconsistent
with the treatment of the Class A Notes (or interest therein) for purposes
of federal, state, local and foreign income or franchise taxes and any other
tax imposed on or measure by income, as indebtedness.  Each Holder of a Class A Note agrees
that it will cause any holder of an interest therein acquiring such interest
through it to comply with the Indenture as to treatment as indebtedness for
certain tax purposes.

 

For the avoidance
of doubt, this Note has been countersigned by SunTrust Delaware Trust Company
not in its individual capacity but solely in its capacity as Owner Trustee of
the Issuer, and in no event shall SunTrust Delaware Trust Company in its
individual capacity have any liability with respect to the obligations
hereunder as to all of which recourse shall be had solely to the assets of the
Issuer as provided in the Indenture.

 

AS PROVIDED IN THE INDENTURE, THE INDENTURE AND THE
NOTES SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE
STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATION
LAW OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT REGARD TO CONFLICT OF LAWS
PRINCIPLES).

 

2

 

IN
WITNESS WHEREOF, the Issuer has caused this Class A Floating Rate Variable
Funding Note, Series 2001-1, to be signed, manually or in facsimile,
by its Authorized Officer.

 

Dated:  [               ]

 

	
   

  	
  TEXTRON FINANCIAL
  FLOORPLAN

  MASTER NOTE TRUST, as the Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  SUNTRUST DELAWARE TRUST

  COMPANY, not in its individual capacity,

  but solely as Owner Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

Dated:  [      ]

 

	
   

  	
  THE BANK OF NEW YORK, not in its
  individual

  capacity but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

Schedule 1

 

INCREMENTAL FUNDINGS AND REPAYMENTS

 

	
  Amount of

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Incremental

  	
   

  	
  Principal

  	
   

  	
  Outstanding

  	
   

  	
  Current Maximum

  	
   

  
	
  Funding

  	
   

  	
  Amount Repaid

  	
   

  	
  Principal Balance

  	
   

  	
  Principal Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

FORM OF
CLASS B NOTE

 

THIS NOTE HAS NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED EXCEPT (A) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS
A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE
SECURITIES ACT IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A WHO IS
PURCHASING THE NOTES FOR HIS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER OR (B) TO AN ACCREDITED INVESTOR THAT IS NOT A
QUALIFIED INSTITUTIONAL BUYER (SUBJECT IN THE CASE OF CLAUSE (B) TO
RECEIPT BY THE INDENTURE TRUSTEE OF SUCH CERTIFICATES AND OTHER DOCUMENTS AS
ARE REQUIRED UNDER THE INDENTURE), IN EACH CASE IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER
JURISDICTION.

 

 

TEXTRON FINANCIAL FLOORPLAN MASTER NOTE TRUST

CLASS B FLOATING RATE VARIABLE FUNDING NOTE,

SERIES 2001-1

 

	
  Note
  B-[   ]

  	
   

  	
  The Amount Set
  Forth on Schedule 1 as the

  “Current Maximum Principal Amount”

  

 

TEXTRON
FINANCIAL FLOORPLAN MASTER NOTE TRUST, a Delaware statutory trust, (the “Issuer”)
for value received, hereby promises to pay to [NAME OF HOLDER], or its
registered assigns, upon presentation and surrender to this Note (except as
otherwise permitted by the Indenture referred to below), the principal sum
equal to the Maximum Principal Amount (or such lesser amount as shall equal the
aggregate outstanding principal under this Note) on the Series 2001-1
Stated Maturity Date except as provided in the Indenture referred to herein.

 

This Note is one
of a duly authorized issue of Class B Floating Rate Notes, Series 2001-1
(the “Class B Notes”) issued and to be issued under the Amended and
Restated Indenture dated as of May 26, 2005 (as supplemented by the
Amended and Restated Series 2001-1 Supplement dated as of May 26,
2005 (as such Series 2001-1 Supplement may be amended, restated,
supplemented or otherwise modified from time to time, the “Supplement”)
and  as it may be amended, restated,
supplemented or otherwise modified from time to time in accordance with its
terms, the “Indenture”) among the Issuer and The Bank of New York, a New York
banking corporation, as Indenture Trustee (the “Indenture Trustee”, which term
includes any successor trustee as permitted under the Indenture).  Reference is hereby made to the
Indenture  for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of
the Issuer, the Indenture Trustee and the Holders of the Class B Notes and
the terms upon which the Class B Notes are, and are to be, authenticated
and delivered.  Capitalized terms used
herein and not otherwise defined shall have the meanings set forth in the
Indenture or the Supplement or the Class B Note Purchase Agreement as the
case may be.

 

The Issuer
promises to pay interest, if any, at the Class B Interest Rate from time
to time, on the thirteenth calendar day of each month, or, if such day is not a
Business Day, on the next succeeding Business Day, commencing [Month] 13,
[Year] (each, a “Payment Date”) in each case on the outstanding principal
balance hereunder until such outstanding principal balance is paid or until the
Termination Date as provided in the Supplement. 
To the extent lawful and enforceable, interest on any Class B
Interest Shortfall shall accrue hereon to the extent provided in the
Supplement.  The interest and other
amounts so payable, and punctually paid, on any Payment Date will, as provided
in the Indenture, be paid to the Person in whose name this Note (or one or more
predecessor Notes) is registered at the close of business on the Record Date
for such interest, which shall be the last day of the Collection Period preceding
such Payment Date.

 

 

The principal of
this Note shall be payable on each Payment Date on which funds are permitted or
required to be used for such purpose in accordance with the Supplement and the
Indenture.  The principal of this Note shall
be due and payable no later than the Series 2001-1 Stated Maturity
Date, unless previously repaid prior thereto as described in the Indenture.

 

The obligations of
the Issuer under this Note and the Indenture are limited recourse obligations
of the Issuer as provided in the Indenture. 
The payments of principal of, and interest and other amounts with
respect to, this Note are subject to the priority of payments as provided in
the Indenture and Supplement.

 

Unless the
certificate of authentication hereon has been executed by the Indenture Trustee
by the manual signature of one of its Authorized Officers, this Note shall not
be entitled to any benefit under the Indenture or be valid or obligatory for
any purpose.

 

If an Event of
Default shall occur and be continuing, this Note may become or be declared due
and payable in the manner and with the effect provided in the Indenture.

 

Title to Notes
shall pass solely by registration in the Register kept by the Registrar, which
for the Class B Notes initially shall be the Indenture Trustee.

 

No service charge
shall be made for any registration of transfer or exchange of this Note, but
the Indenture Trustee or any Registrar may require payment 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 all fees and expenses of
the Indenture Trustee) connected therewith.

 

Neither
this Class B Note nor any interest herein may be sold, pledged,
participated, transferred, disposed of or otherwise alienated (each, a “Transfer”),
and the Registrar will not recognize any Transfer or purported Transfer of this
Class B Note”, unless prior to such Transfer or purported Transfer the
Indenture Trustee and the Registrar have received an Opinion of Counsel to the
effect that, for federal income tax purposes, such Transfer will not cause the
Issuer to be characterized as an association 
or publicly traded partnership taxable as a corporation.  Any Transfer or purported Transfer of this Class B
Note in violation of the preceding sentence shall be void ab initio and of no
effect.

 

For the avoidance of
doubt, this Note has been countersigned by SunTrust Delaware Trust Company not
in its individual capacity but solely in its capacity as Owner Trustee of the Issuer,
and in no event shall SunTrust Delaware Trust Company in its individual
capacity have any liability with respect to the obligations hereunder as to all
of which recourse shall be had solely to the assets of the Issuer as provided
in the Indenture.

 

AS
PROVIDED IN THE INDENTURE, THE INDENTURE AND THE NOTES SHALL BE CONSTRUED IN
ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401
OF THE GENERAL OBLIGATION LAW OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT
REGARD TO CONFLICT OF LAWS PRINCIPLES).

 

2

 

IN
WITNESS WHEREOF, the Issuer has caused this Class B Floating Rate Note, Series 2001-1,
to be signed, manually or in facsimile, by its Authorized Officer.

 

Dated:  [         ]

 

	
   

  	
  TEXTRON FINANCIAL
  FLOORPLAN

  MASTER NOTE TRUST, as the Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  SUNTRUST DELAWARE TRUST

  COMPANY, not in its individual capacity,

  but solely as Owner Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

Dated:  [        ]

 

	
   

  	
  THE BANK OF NEW YORK, not in its
  individual

  capacity but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

Schedule 1

 

INCREMENTAL FUNDINGS AND REPAYMENTS

 

	
  Amount of

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Incremental

  	
   

  	
  Principal

  	
   

  	
  Outstanding

  	
   

  	
  Current Maximum

  	
   

  
	
  Funding

  	
   

  	
  Amount Repaid

  	
   

  	
  Principal Balance

  	
   

  	
  Principal Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

EXHIBIT B

 

FORM OF PAYMENT DATE STATEMENT

 

[attached]

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