Document:

Exhibit 4.1

 

EXECUTION COPY

 

 

INDENTURE

 

Dated as of June 22, 2005

 

among

 

HSBC AUTOMOTIVE TRUST
2005-1

 

Issuer,

 

WELLS FARGO BANK,
NATIONAL ASSOCIATION

Indenture Trustee

 

and

 

HSBC
BANK USA, NATIONAL ASSOCIATION

Administrator

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE
  I. Definitions and Incorporation by Reference

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.1

  	
  Definitions

  	
   

  
	
  SECTION 1.2

  	
  Incorporation
  by Reference of the Trust Indenture Act

  	
   

  
	
  SECTION 1.3

  	
  Rules
  of Construction

  	
   

  
	
  SECTION 1.4

  	
  Action
  by or Consent of Noteholders and Certificateholders

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  II. The Notes

  	
   

  
	
   

  	
   

  
	
  SECTION 2.1

  	
  Form;
  Amount Limited; Issuable in Series

  	
   

  
	
  SECTION 2.2

  	
  Execution,
  Authentication and Delivery

  	
   

  
	
  SECTION 2.3

  	
  Temporary
  Notes

  	
   

  
	
  SECTION 2.4

  	
  Registration;
  Registration of Transfer and Exchange

  	
   

  
	
  SECTION 2.5

  	
  Mutilated,
  Destroyed, Lost or Stolen Notes

  	
   

  
	
  SECTION 2.6

  	
  Persons
  Deemed Owner

  	
   

  
	
  SECTION 2.7

  	
  Payment
  of Principal and Interest; Defaulted Interest

  	
   

  
	
  SECTION 2.8

  	
  Cancellation

  	
   

  
	
  SECTION 2.9

  	
  Reserved

  	
   

  
	
  SECTION 2.10

  	
  Book-Entry
  Notes

  	
   

  
	
  SECTION 2.11

  	
  Notices
  to Clearing Agency

  	
   

  
	
  SECTION 2.12

  	
  Definitive
  Notes

  	
   

  
	
  SECTION 2.13

  	
  Final
  Distribution

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III. Covenants 

  	
   

  
	
   

  	
   

  
	
  SECTION 3.1

  	
  Payment
  of Principal and Interest

  	
   

  
	
  SECTION 3.2

  	
  Maintenance
  of Office or Agency

  	
   

  
	
  SECTION 3.3

  	
  Money
  for Payments to be Held in Trust

  	
   

  
	
  SECTION 3.4

  	
  Existence

  	
   

  
	
  SECTION 3.5

  	
  Protection
  of Series Trust Estate

  	
   

  
	
  SECTION 3.6

  	
  Opinions
  as to Series Trust Estate

  	
   

  
	
  SECTION 3.7

  	
  Performance
  of Obligations; Servicing of Receivables

  	
   

  
	
  SECTION 3.8

  	
  Negative
  Covenants

  	
   

  
	
  SECTION 3.9

  	
  Annual
  Statement as to Compliance

  	
   

  
	
  SECTION 3.10

  	
  Issuer
  May Consolidate, Etc. Only on Certain Terms

  	
   

  
	
  SECTION 3.11

  	
  Successor
  or Transferee

  	
   

  
	
  SECTION 3.12

  	
  No
  Other Business

  	
   

  
	
  SECTION 3.13

  	
  No
  Borrowing

  	
   

  
	
  SECTION 3.14

  	
  Master
  Servicer’s Obligations

  	
   

  
	
  SECTION 3.15

  	
  Guarantees,
  Loans, Advances and Other Liabilities

  	
   

  
	
  SECTION 3.16

  	
  Capital
  Expenditures

  	
   

  
	
  SECTION 3.17

  	
  Compliance
  with Laws

  	
   

  
	
  SECTION
  3.18

  	
  Restricted Payments

  	
   

  
	
  SECTION
  3.19

  	
  Notice of Events of Default

  	
   

  
	
  SECTION
  3.20

  	
  Further Instruments and Acts

  	
   

  
	
  SECTION
  3.21

  	
  Amendments of Master Sale and Servicing
  Agreement and Trust Agreement

  	
   

  
	
  SECTION
  3.22

  	
  Income Tax Characterization

  	
   

  

 

i

 

	
  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 Note Paying
  Agent

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V. Remedies

  	
   

  
	
   

  	
   

  
	
  SECTION
  5.1

  	
  Events of Default

  	
   

  
	
  SECTION
  5.2

  	
  Collection of Indebtedness and Suits for
  Enforcement by Indenture Trustee

  	
   

  
	
  SECTION
  5.3

  	
  Limitation of Suits

  	
   

  
	
  SECTION
  5.4

  	
  Unconditional Rights of Noteholders To
  Receive Principal and Interest

  	
   

  
	
  SECTION
  5.5

  	
  Restoration of Rights and Remedies

  	
   

  
	
  SECTION
  5.6

  	
  Rights and Remedies Cumulative

  	
   

  
	
  SECTION
  5.7

  	
  Delay or Omission Not a Waiver

  	
   

  
	
  SECTION
  5.8

  	
  Limitation on Voting of Preferred Stock;
  Control by Noteholders

  	
   

  
	
  SECTION
  5.9

  	
  Waiver of Past Defaults

  	
   

  
	
  SECTION
  5.10

  	
  Undertaking for Costs

  	
   

  
	
  SECTION
  5.11

  	
  Waiver of Stay or Extension Laws

  	
   

  
	
  SECTION
  5.12

  	
  Action on Notes

  	
   

  
	
  SECTION
  5.13

  	
  Performance and Enforcement of Certain
  Obligations

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VI. The Indenture Trustee and the Administrator

  	
   

  
	
   

  	
   

  
	
  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 Master Servicer to Holders

  	
   

  
	
  SECTION
  6.7

  	
  Indenture Trustee Compensation and
  Indemnification

  	
   

  
	
  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

  	
  Eligibility: Disqualification

  	
   

  
	
  SECTION
  6.12

  	
  Preferential Collection of Claims Against
  Issuer

  	
   

  
	
  SECTION
  6.13

  	
  Representations and Warranties of the
  Indenture Trustee

  	
   

  
	
  SECTION
  6.14

  	
  Waiver of Setoffs

  	
   

  
	
  SECTION
  6.15

  	
  No Consent to Certain Acts of Seller

  	
   

  
	
  SECTION
  6.16

  	
  Duties, Liabilities and Limitations on
  Liability of Administrator.

  	
   

  
	
  SECTION
  6.17

  	
  Administrator Compensation and
  Indemnification.

  	
   

  
	
  SECTION
  6.18

  	
  Replacement of Administrator.

  	
   

  
	
  SECTION
  6.19

  	
  Successor Administrator by Merger

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VII. Noteholders’ Lists and Reports

  	
   

  
	
   

  	
   

  
	
  SECTION
  7.1

  	
  Issuer To Furnish To Indenture Trustee and
  Administrator Names and Addresses of Noteholders

  	
   

  

 

ii

 

	
  SECTION
  7.2

  	
  Preservation of Information; Communications
  to Noteholders

  	
   

  
	
  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

  	
  Release of Series Trust Estate

  	
   

  
	
  SECTION
  8.3

  	
  Opinion of Counsel

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IX. Amendments; the Series Supplement

  	
   

  
	
   

  	
   

  
	
  SECTION
  9.1

  	
  Amendments Without Consent of Noteholders

  	
   

  
	
  SECTION
  9.2

  	
  Amendments With Consent of Noteholders

  	
   

  
	
  SECTION
  9.3

  	
  Series Supplement Authorizing the Notes

  	
   

  
	
  SECTION
  9.4

  	
  Execution of the Series Supplement

  	
   

  
	
  SECTION
  9.5

  	
  Effect of Series Supplement

  	
   

  
	
  SECTION
  9.6

  	
  Conformity With Trust Indenture Act

  	
   

  
	
  SECTION
  9.7

  	
  Reference in Notes to the Series Supplement

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE X. [Reserved]

  	
   

  
	
   

  	
   

  
	
  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 Noteholders

  	
   

  
	
  SECTION
  11.4

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

  	
   

  
	
  SECTION
  11.5

  	
  Notices to Noteholders; Waiver

  	
   

  
	
  SECTION
  11.6

  	
  Alternate Payment and Notice Provisions

  	
   

  
	
  SECTION
  11.7

  	
  Conflict with TIA

  	
   

  
	
  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

  	
   

  
	
  SECTION 11.13

  	
  GOVERNING LAW

  	
   

  
	
  SECTION 11.14

  	
  Counterparts

  	
   

  
	
  SECTION 11.15

  	
  Recording of Indenture

  	
   

  
	
  SECTION 11.16

  	
  Trust Obligation

  	
   

  
	
  SECTION 11.17

  	
  No Petition

  	
   

  
	
  SECTION 11.18

  	
  Limited Recourse.

  	
   

  
	
  SECTION 11.19

  	
  Inspection

  	
   

  
	
  SECTION 11.20

  	
  Limitation of Liability

  	
   

  

 

	
  EXHIBIT
  A — Form of Transferee Certificate

  

 

iii

 

 

INDENTURE dated as of June 22, 2005, among HSBC
AUTOMOTIVE TRUST 2005-1, a Delaware statutory trust (the “Issuer”), WELLS FARGO
BANK, NATIONAL ASSOCIATION, a national banking association, as indenture
trustee (the “Indenture Trustee”) and HSBC BANK USA, NATIONAL ASSOCIATION, a national banking
association, as administrator (the “Administrator”).

 

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

 

GRANTING CLAUSE

 

In order to secure the due and punctual payment of the principal of and
interest on the Notes when and as the same shall become due and payable,
whether as scheduled, by declaration of acceleration, prepayment or otherwise,
the Issuer, pursuant to the Series Supplement, shall pledge the Series Trust
Estate to the Indenture Trustee, all for the benefit of the Indenture Trustee
for the benefit of the Secured Parties.

 

ARTICLE I.

Definitions and Incorporation by Reference

 

SECTION 1.1         Definitions.  Except as otherwise specified herein, the
following terms have the respective meanings set forth below for all purposes
of this Indenture.

 

“Act” has the meaning specified in Section 11.3(a).

 

“Administrator” means HSBC Bank USA, National Association, a national
banking association, as administrator under this Indenture and the other Basic
Documents to which it is a party, or any successor administrator hereunder and
thereunder.

 

“Authorized Officer” means, with respect to the Issuer and the Master
Servicer, any officer or agent acting pursuant to a power of attorney of the
Owner Trustee or the Master Servicer, as applicable, who is authorized to act
for the Owner Trustee or the Master Servicer, as applicable, in matters
relating to the Issuer and who is identified on the list of Authorized Officers
delivered by each of the Owner Trustee and the Master Servicer to the Indenture
Trustee and the Administrator on the Closing Date (as such list may be modified
or supplemented from time to time thereafter).

 

“Book Entry Notes” means any beneficial interest in the Notes,
ownership and transfers of which shall be made through book entries by a
Clearing Agency as described in Section 2.10.

 

“Class” means all of the Notes having the same specified payment terms
and priority of payment.

 

1

 

“Class SV Preferred Stock” means the preferred stock of the Seller.

 

“Clearing Agency” means an organization registered as a “clearing
agency” pursuant to Section 17A of the Exchange Act.

 

“Clearing Agency Participant” means a broker, dealer, bank, other
financial institution or other Person for whom from time to time a Clearing
Agency effects book-entry transfers and pledges of securities deposited with
the Clearing Agency.

 

“Code” means the Internal Revenue Code of 1986, as amended from time to
time, and Treasury Regulations promulgated thereunder.

 

“Corporate Trust Office” has the meaning assigned to such term in the
Series Supplement.

 

“Default” means any occurrence that is, or with notice or the lapse of
time or both would become, an Event of Default.

 

“Definitive Notes” has the meaning specified in Section 2.10.

 

“Event of Default” has the meaning specified in Section 5.1.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Executive Officer” means, with respect to any corporation, the Chief
Executive Officer, Chief Operating Officer, Chief Financial Officer, President,
Executive Vice President, any Vice President, the Secretary, the Treasurer, or
any Assistant Treasurer of such corporation.

 

“Grant” means mortgage, pledge, bargain, sell, warrant, alienate,
remise, release, convey, assign, transfer, create, grant a lien upon and a
security interest in and right of set-off against, deposit, set over and
confirm pursuant to this Indenture.  A
Grant of the Series Trust Estate or of any other agreement or instrument shall
include all rights, powers and options (but none of the obligations) of the
granting party thereunder, including the immediate and continuing right to
claim for, collect, receive and give receipt for principal and interest
payments in respect of the Series Trust Estate and all other monies payable
thereunder, 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 granting party or otherwise and generally to do
and receive anything that the granting party is or may be entitled to do or
receive thereunder or with respect thereto.

 

“Holder” or “Noteholder” means the Person in whose name a Note is
registered on the Note Register.

 

“Indebtedness” means, with respect to any Person at any time, (a)
indebtedness or liability of such Person for borrowed money whether or not
evidenced by bonds, debentures, notes or other instruments, or for the deferred
purchase price of

 

2

 

property or services (including trade obligations);
(b) obligations of such Person as lessee under leases which should have been or
should be, in accordance with generally accepted accounting principles,
recorded as capital leases; (c) current liabilities of such Person in respect
of unfunded vested benefits under plans covered by Title IV of ERISA; (d)
obligations issued for or liabilities incurred on the account of such Person;
(e) obligations or liabilities of such Person arising under acceptance
facilities; (f) obligations of such Person under any guarantees, endorsements
(other than for collection or deposit in the ordinary course of business) and
other contingent obligations to purchase, to provide funds for payment, to
supply funds to invest in any Person or otherwise to assure a creditor against
loss; (g) obligations of such Person secured by any lien on property or assets
of such Person, whether or not the obligations have been assumed by such
Person; or (h) obligations of such Person under any interest rate or currency
exchange agreement.

 

“Indenture Trustee” means, initially, Wells Fargo Bank, National
Association, a national banking association, not in its individual capacity but
as trustee under this Indenture, or any successor trustee under this Indenture.

 

“Indenture Trustee Fee” means the fees due to the Indenture Trustee, as
may be set forth in that certain fee letter, dated as of the date hereof
between the Master Servicer and the Indenture Trustee.

 

“Independent” means, when used with respect to any specified Person,
that the person (a) is in fact independent of the Issuer, any other obligor
upon the Notes, the Seller and any Affiliate of any of the foregoing persons,
(b) does not have any direct financial interest or any material indirect
financial interest in the Issuer, any such other obligor, the Seller or any
Affiliate of any of the foregoing Persons and (c) is not connected with the
Issuer, any such other obligor, the Seller or any Affiliate of any of the
foregoing Persons as an officer, employee, promoter, underwriter, trustee,
partner, director or Person performing similar functions.

 

“Independent Certificate” means a certificate or opinion to be
delivered to the Indenture Trustee under the circumstances described in, and
otherwise complying with, the applicable requirements of Section 11.1, prepared
by an Independent appraiser or other expert appointed pursuant to an Issuer
Order and approved by the Indenture Trustee in the exercise of reasonable care,
and such opinion or certificate shall state that the signer has read the
definition of “Independent” in this Indenture and that the signer is
Independent within the meaning thereof.

 

“Issuer Order” and “Issuer Request” means a written order or request
signed in the name of the Issuer by any one of its Authorized Officers and
delivered to the Indenture Trustee and/or the Administrator, as the case may be.

 

“Master Sale and Servicing Agreement” has the meaning assigned to such
term in the Series Supplement.

 

“Moody’s” means Moody’s Investors Service, Inc., or its successor.

 

“Notes” means the Notes authenticated and delivered under this
Indenture.

 

3

 

“Note Owner” means, with respect to a Book-Entry Note, the person who
is the owner of such Book-Entry Note, as reflected on the books of the Clearing
Agency, or on the books of a Person maintaining an account with such Clearing
Agency (directly as a Clearing Agency Participant or as an indirect
participant, in each case in accordance with the rules of such Clearing
Agency).

 

“Note Paying Agent” means the Administrator or any other Person that
meets the eligibility standards for the Indenture Trustee specified in Section 6.11
and is authorized by the Issuer to make payments to and distributions from the
Collection Account, including payment of principal of or interest on the Notes
on behalf of the Issuer.

 

“Note Register” and “Note Registrar” have the respective meanings
specified in Section 2.4.

 

“Officer’s Certificate” means a certificate signed by any Authorized
Officer of the Issuer, under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 11.1 and TIA § 314,
and delivered to the Indenture Trustee and/or the Administrator, as the case
may be.  Unless otherwise specified, any
reference in this Indenture to an Officer’s Certificate shall be to an Officer’s
Certificate of any Authorized Officer of the Issuer.  Each certificate with respect to compliance
with a condition or covenant provided for in this Indenture shall include (1) a
statement that the Authorized Officer signing the certificate has read such
covenant or condition; (2) a brief statement as to the nature and scope of the
examination or investigation upon which the statements contained in such
certificate are based; (3) a statement that in the opinion of such person, he
has made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or condition has
been complied with; and (4) a statement as to whether or not, in the opinion of
such person, such condition or covenant has been complied with.

 

“Outstanding” means, as of the date of determination, all Notes
theretofore authenticated and delivered under this Indenture except:

 

(i)            Notes theretofore canceled by the
Note Registrar or delivered to the Note Registrar for cancellation;

 

(ii)           Notes or portions thereof the payment
for which money in the necessary amount has been theretofore deposited with the
Indenture Trustee or any Note Paying Agent in trust for the Holders of such
Notes (provided, however, that if such Notes are to be redeemed,
notice of such redemption has been duly given pursuant to the Series Supplement
or provision therefor, satisfactory to the Indenture Trustee and the
Administrator, has been made); and

 

(iii)          Notes in exchange for or in lieu of
other Notes which have been authenticated and delivered pursuant to this
Indenture unless proof satisfactory to

 

4

 

the Administrator is presented that any such Notes are
held by a bona fide purchaser;

 

provided, however, that in
determining whether the Holders of the requisite Outstanding Amount of the
Notes have given any request, demand, authorization, direction, notice, consent
or waiver hereunder or under any Basic Document, Notes owned by the Issuer, any
other obligor upon the Notes, the Seller or any Affiliate of any of the
foregoing Persons shall be disregarded and deemed not to be Outstanding, except
that, in determining whether the Indenture Trustee and/or the Administrator shall
be protected in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Notes that a Responsible Officer of
the Indenture Trustee or the Administrator, as the case may be, either actually
knows to be so owned or has received written notice thereof shall be so
disregarded.  Notes so owned that have
been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Indenture Trustee or the Administrator,
as the case may be, the pledgee’s right so to act with respect to such Notes
and that the pledgee is not the Issuer, any other obligor upon the Notes, the
Seller or any Affiliate of any of the foregoing Persons.

 

“Outstanding Amount” means the aggregate principal amount of all Notes,
or Class of Notes, as applicable, Outstanding at the date of determination.

 

“Owner Trustee” has the meaning assigned to such term in the Trust
Agreement.

 

“Predecessor Note” means, with respect to any particular Note, every
previous Note evidencing all or a portion of the same debt as that evidenced by
such particular Note; and, for the purpose of this definition, any Note
authenticated and delivered under Section 2.5 in lieu of a mutilated, lost,
destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note.

 

“Proceeding” means any suit in equity, action at law or other judicial
or administrative proceeding.

 

“Record Date” means, with respect to a Distribution Date, the close of
business on the Business Day immediately preceding such Distribution Date.  However, if Definitive Notes are issued, the
Record Date shall be the last Business Day of the month preceding a
Distribution Date.

 

“Registration Statement” has the meaning specified therefor in the
Securities Act.

 

“Responsible Officer” means, with respect to the Indenture Trustee, the
Administrator or the Owner Trustee, any officer within the Corporate Trust
Office of the Indenture Trustee, the Administrator or the Owner Trustee, as the
case may be, including any Vice President, Assistant Vice President, Assistant
Treasurer, Assistant Secretary, Financial Services Officer or any other officer
of the Indenture Trustee, the Administrator or the Owner Trustee, as the case
may be, customarily performing functions similar to

 

5

 

those performed by any of the above designated
officers and having direct responsibility for the administration of this
Indenture.

 

“Secured Parties” has the meaning assigned to such term in the Series
Supplement.

 

“Securities Act” means the Securities Act of 1933, as amended.

 

“Series Supplement” means the Series Supplement, dated as of June 22,
2005, among the Master Servicer, the Issuer, the Seller, the Indenture Trustee,
the Owner Trustee and the Administrator, as such agreement may be amended or
supplemented from time to time.

 

“Series Trust Estate” has the meaning assigned to such term in the
Series Supplement.

 

“S&P” means Standard & Poor’s Rating Services, a division of
The McGraw-Hill Companies, Inc., or its successor.

 

“State” means any one of the 50 states of the United States of America
or the District of Columbia.

 

“Tranche” means all of the Notes having the same date of
authentication.

 

“Trust Agreement” has the meaning assigned to such term in the Series
Supplement.

 

“Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939,
as amended and as in force on the date hereof, unless otherwise specifically
provided.

 

“UCC” means, unless the context otherwise requires, the Uniform
Commercial Code, as in effect in the relevant jurisdiction, as amended from
time to time.

 

“Unregistered Note” means a Note which is not being offered for sale
hereunder pursuant to a Registration Statement.

 

Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to them in the Master Sale and Servicing Agreement,
the Series Supplement or the Trust Agreement.

 

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

 

“Commission” means the Securities and Exchange Commission.

 

“indenture securities” means the Notes.

 

6

 

“indenture security holder” means a Noteholder.

 

“indenture to be qualified” means this Indenture.

 

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

 

“obligor” on the indenture securities means the Issuer.

 

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

 

SECTION 1.3         Rules of Construction.  Unless the context otherwise requires:

 

(i)                    a term has
the meaning assigned to it;

 

(ii)                   an
accounting term not otherwise defined has the meaning assigned to it in
accordance with generally accepted accounting principles as in effect from time
to time;

 

(iii)                  “or” is not
exclusive;

 

(iv)                  “including”
means including without limitation; and

 

(v)                   words in the
singular include the plural and words in the plural include the singular.

 

SECTION 1.4         Action by or Consent of Noteholders
and Certificateholders.  Whenever any
provision of this Indenture refers to action to be taken, or consented to, by
Noteholders or Certificateholders, such provision shall be deemed to refer to
the Certificateholder or Noteholder, as the case may be, of record as of the
Record Date immediately preceding the date on which such action is to be taken,
or consent given, by Noteholders or Certificateholders.  Solely for the purposes of any action to be
taken, or consented to, by Noteholders or Certificateholders, any Note or
Certificate registered in the name of Seller or any Affiliate thereof shall be
deemed not to be Outstanding (except in the event that the Seller and/or an
Affiliate thereof then owns all outstanding Certificates and Outstanding
Notes); provided, however, that, solely for the purpose of
determining whether the Indenture Trustee is entitled to rely upon any such
action or consent, only Notes or Certificates which the Owner Trustee or the
Indenture Trustee, respectively, knows to be so owned shall be so disregarded.

 

7

 

ARTICLE II.

The Notes

 

SECTION 2.1         Form; Amount Limited; Issuable in Series.

 

(a)           The
Notes shall be in substantially the form set forth in the Series Supplement,
with such appropriate insertions, omissions, substitutions and other variations
as are required or permitted by this Indenture or the Series Supplement and
which do not affect the rights, duties or obligations of the Administrator
without the consent of the Administrator, and may have such letters, numbers or
other marks of identification and such legends or endorsements placed thereon
as may, consistently herewith, be determined by the officers executing such
Notes, as evidenced by their execution of the Notes.  Any portion of the text of any Note may be
set forth on the reverse thereof, with an appropriate reference thereto on the
face of the Note.

 

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

 

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

 

(b)           The
aggregate principal amount of Notes which may be authenticated and delivered
and Outstanding at any time under this Indenture is not limited; provided
that the Series Supplement may so limit the aggregate principal amount of
Notes.  The Notes shall be issued in a
series, and may be issued in Classes and/or Tranches within such series (and
Tranches within a Class).

 

No Notes shall be issued under this Indenture unless such Notes have
been authorized pursuant to the Series Supplement, and all conditions precedent
to the issuance thereof, as specified in the Series Supplement, shall have been
satisfied.

 

All Notes issued under this Indenture shall be in all respects equally
and ratably entitled to the benefits hereof and secured by the Series Trust
Estate without preference, priority or distinction on account of the actual
time or times of authentication and delivery, all in accordance with the terms
and provisions hereof and the Series Supplement.

 

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

 

Notes bearing the original or facsimile signature of individuals who
were at any time Authorized Officers of the Issuer shall bind the Issuer,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the

 

8

 

authentication and delivery of such Notes or did not
hold such offices at the issuance date of such Notes.

 

The Notes shall be issuable in the denominations specified in the
Series Supplement.

 

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

 

SECTION 2.3         Temporary Notes.  Pending the preparation of Definitive Notes
of any Class or Tranche, the Issuer may execute, and upon receipt of an Issuer
Order prepared and delivered by the Master Servicer, the Administrator shall
authenticate and deliver, temporary Notes which are printed, lithographed,
typewritten, mimeographed or otherwise produced, of the tenor of the Definitive
Notes in lieu of which they are issued and with such variations not
inconsistent with the terms of this Indenture as the officers executing such
Notes may determine, as evidenced by their execution of such Notes.

 

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

 

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

 

If a Person other than the Administrator is appointed by the Issuer as
Note Registrar, the Issuer will give the Indenture Trustee and the
Administrator prompt written notice of the appointment of such Note Registrar
and of the location, and any change in

 

9

 

the location, of the Note Register.  The Indenture Trustee and, if it is no longer
serving as Note Registrar hereunder, the Administrator, shall have the right to
inspect the Note Register at all reasonable times and to obtain copies
thereof.  The Indenture Trustee and the
Administrator shall have the right to rely upon a certificate executed on
behalf of the Note Registrar by an Authorized Officer thereof as to the names
and addresses of the Holders of the Notes and the principal amounts and number
of such Notes.

 

Upon surrender for registration or transfer of any Note at the office
or agency of the Issuer to be maintained as provided in Section 3.2, and if the
requirements of Section 8-401(1) of the UCC are met, the Issuer shall execute
and cause the Administrator to authenticate one or more new Notes, in any
authorized denominations, of the same class and a like aggregate principal
amount.  A Noteholder may also obtain
from the Administrator, in the name of the designated transferee or transferees
one or more new Notes, in any authorized denominations, of the same Class and
Tranche, as applicable, and a like aggregate principal amount.  Such requirements shall not be deemed to
create a duty in the Administrator, nor shall the Administrator have any duty, to
monitor the compliance by the Issuer with Section 8-401 of the UCC.

 

At the option of the Holder, Notes of any Class or Tranche may be
exchanged for other Notes of such Class or Tranche in any authorized denominations
of the same Class (and Tranche, if applicable) and a like aggregate principal
amount, upon surrender of the Notes to be exchanged at such office or
agency.  Whenever any Notes are so
surrendered for exchange, and if the requirements of Section 8-401(1) of the
UCC are met, the Issuer shall execute and upon its written request the Administrator
shall authenticate the Notes which the Noteholder making the exchange is
entitled to receive.  Such requirements
shall not be deemed to create a duty in the Administrator, nor shall the
Administrator have any duty, to monitor the compliance by the Issuer with
Section 8-401 of the UCC.

 

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

 

Unless specified in the Series Supplement, every Note presented or
surrendered for registration of transfer or exchange shall, unless specified in
the Series Supplement, be (i) duly endorsed by, or be accompanied by a written
instrument of transfer in the form attached as an exhibit to the Note duly
executed by the Holder thereof or such Holder’s attorney duly authorized in
writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar which requirements include
membership or participation in Securities Transfer Agents Medallion Program (“Stamp”)
or such other “signature guarantee program” as may be determined by the Note
Registrar in addition to, or in substitution for, Stamp, all in accordance with
the Exchange Act, and (ii) accompanied by such other documents as the Note Registrar
may require.

 

10

 

No service charge shall be made to a Holder for any registration of
transfer or exchange of Notes, but the Note Registrar may require payment of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any registration of transfer or exchange of Notes.

 

Notwithstanding, the preceding provisions of this section, the Issuer
shall not be required to make, and the Note Registrar shall not register,
transfers or exchanges of Notes selected for redemption for a period of 15 days
preceding a Distribution Date.

 

The Note Registrar shall not register the transfer of a Definitive Note
unless the transferee has executed and delivered to the Administrator a
certification, in the form of Exhibit A hereto, to the effect that
either (i) the transferee is not (A) an employee benefit plan (within the
meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974,
as amended (“ERISA”)) that is subject to Title I of ERISA or (B) a plan (within
the meaning of Section 4975(e)(1) of the Code) that is subject to Section 4975
of the Code (each of the foregoing, a “Plan”), and is not acting on behalf of
or investing the assets of a Plan or (ii) that the transferee’s acquisition and
continued holding of the Definitive Note will be covered by a prohibited
transaction class exemption issued by the U.S. Department of Labor.  Each Note Owner that purchases a Book-Entry
Note, or to whom a Book-Entry Note is transferred, shall be deemed to represent
that either (i) it is not a Plan and is not acting on behalf of or investing
the assets of a Plan or (ii) its acquisition and continued holding of the
Book-Entry Note will be covered by a prohibited transaction class exemption
issued by the U.S. Department of Labor.

 

No Holder of an Unregistered Note shall transfer its Note, unless (i)
such transfer is made in accordance with Rule 144A under the Securities Act or
(ii) pursuant to an exemption from registration provided by Rule 144 under the
Securities Act (if available) and the registration and qualification
requirements under applicable state securities laws.

 

Each Unregistered Note issued hereunder will contain the following
legend limiting sales to “Qualified Institutional Buyers” within the meaning of
Rule 144A under the Securities Act:

 

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND HAS NOT BEEN
APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR REGULATORY
AUTHORITY OF ANY STATE.  THIS NOTE HAS
BEEN OFFERED AND SOLD PRIVATELY.  THE
HOLDER HEREOF ACKNOWLEDGES THAT THESE SECURITIES ARE “RESTRICTED SECURITIES” THAT HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT AND AGREES FOR THE BENEFIT OF THE OBLIGORS
AND ITS AFFILIATES THAT THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED EXCEPT (A) TO A PERSON WHOM

 

11

 

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 OR (B) PURSUANT TO AN
EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF
AVAILABLE), IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF
ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION.

 

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

 

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

 

Every replacement Note issued pursuant to this Section in replacement
of any mutilated, destroyed, lost or stolen Note shall constitute an original
additional

 

12

 

contractual obligation of the Issuer, whether or not
the mutilated, destroyed, lost or stolen Note shall be at any time enforceable
by anyone, and shall be entitled to all the benefits of this Indenture and the
Series Supplement equally and proportionately with any and all other Notes duly
issued hereunder.

 

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

 

SECTION 2.6         Persons Deemed Owner.  Prior to due presentment for registration of
transfer of any Note, the Issuer, the Indenture Trustee, the Administrator, the
Note Registrar and any agent of any of them may treat the Person in whose name
any Note is registered (as of the Record Date) as the owner of such Note for
the purpose of receiving payments of principal of and interest, if any on such
Note and for all other purposes whatsoever, whether or not such Note be
overdue, and none of the Issuer, the Indenture Trustee, the Administrator, the
Note Registrar or any agent of any of them shall be affected by notice to the
contrary.

 

SECTION 2.7         Payment of Principal and Interest; Defaulted Interest.

 

(a)           The
Notes shall accrue interest as provided in the form of Note set forth in the
Series Supplement and such interest shall be due and payable on each
Distribution Date as specified therein. 
Any installment of interest or principal, if any, payable on any Note
which is punctually or duly provided for by the Issuer on the applicable
Distribution Date shall be paid, as provided in the Series Supplement, or if
not so provided to the Person in whose name such Note (or one or more
Predecessor Notes) is registered on the Record Date, by check mailed
first-class, postage prepaid, to such Person’s address as it appears on the
Note Register on such Record Date, except that, if the Notes are Book Entry
Notes, unless Definitive Notes have been issued pursuant to Section 2.12, with
respect to Notes registered on the Record Date in the name of the nominee of
the Clearing Agency (initially, such nominee to be Cede & Co.), payment
will be made by wire transfer in immediately available funds to the account
designated by such nominee and except for the final installment of principal
payable with respect to such Note on a Distribution Date or on the Final
Scheduled Distribution Date as set forth in the Series Supplement which shall
be payable as provided below.  The funds
represented by any such checks returned undelivered shall be held in accordance
with Section 3.3.

 

(b)           The
principal of each Note shall be payable in installments on each Distribution
Date as provided in the form of Note set forth in the Series Supplement.  Notwithstanding the foregoing, the entire
unpaid principal amount of the Notes shall be due and payable, if not
previously paid, on the date on which an Event of Default shall have occurred
and be continuing, if the Notes are declared to be immediately due and payable
in the manner provided in the Series Supplement.  Upon written notice from the Master Servicer
on behalf of the Issuer, the Administrator shall notify the Person in whose
name a Note is registered at the close of business on the Record Date preceding
the Distribution Date on which the Issuer expects that the final installment of
principal of

 

13

 

and interest on such Note will be paid. 
Such notice may be mailed or transmitted by facsimile prior to such
final Distribution Date and may specify that such final installment will be
payable only upon presentation and surrender of such Note and shall specify the
place where such Note may be presented and surrendered for payment of such
installment.

 

(c)           If
the Issuer defaults in a payment of interest on the Notes, the Issuer shall pay
defaulted interest (plus interest on such defaulted interest to the extent
lawful) at the applicable Note Rate to the extent lawful.  Unless otherwise provided in the Series
Supplement, the Issuer may pay such defaulted interest to the Persons who are
Noteholders on a subsequent special record date, which date shall be at least
five Business Days prior to the payment date. 
The Issuer shall fix or cause to be fixed any such special record date
and payment date, and, at least 15 days before any such special record date,
the Issuer shall mail to each Noteholder, the Indenture Trustee and the
Administrator a notice that states the special record date, the payment date
and the amount of defaulted interest to be paid.

 

SECTION 2.8         Cancellation.  All Notes surrendered for payment,
registration of transfer, exchange or redemption shall, if surrendered to any
Person other than the Administrator, be delivered to the Note Registrar and
shall be promptly canceled by the Note Registrar in accordance with its
customary procedures.  The Issuer may at
any time deliver to the Note Registrar for cancellation any Notes previously
authenticated and delivered hereunder which the Issuer may have acquired in any
manner whatsoever, and all Notes so delivered shall be promptly canceled by the
Note Registrar in accordance with its customary procedures.  No Notes shall be authenticated in lieu of or
in exchange for any Notes canceled as provided in this Section, except as
expressly permitted by this Indenture. 
All canceled Notes may be held or disposed of by the Note Registrar in
accordance with its standard retention or disposal policy as in effect at the
time.

 

SECTION 2.9         Reserved.

 

SECTION 2.10       Book-Entry Notes.  The Notes, upon original issuance, may be
issued in the form of typewritten Notes representing the Book-Entry Notes, to
be delivered to The Depository Trust Company or its agent, the initial Clearing
Agency, by, or on behalf of, the Issuer. 
Such Notes may initially be registered on the Note Register in the name
of Cede & Co., the nominee of the initial Clearing Agency, and no Note
Owner will receive a Definitive Note representing such Note Owner’s interest in
such Note, except as provided in Section 2.12. 
Unless and until definitive, fully registered Notes (the “Definitive
Notes”) have been issued to Note Owners pursuant to Section 2.12:

 

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

 

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

 

14

 

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

 

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

 

(v)                   whenever
this Indenture requires or permits actions to be taken based upon instructions
or directions of Holders of Notes evidencing a specified percentage of the
Outstanding Amount of the Notes, the Clearing Agency shall be deemed to
represent such percentage only to the extent that it has received instructions
to such effect from Note Owners and/or Clearing Agency Participants owning or
representing, respectively, such required percentage of the beneficial interest
in the Notes or in the Notes of a Class, as the case maybe, and has delivered
such instructions to the Indenture Trustee and/or the Administrator, as the
case may be; and

 

(vi)                  Note Owners
may receive copies of any reports sent to Noteholders pursuant to this
Indenture, upon written request, together with a certification that they are
Note Owners and payment of reproduction and postage expenses associated with
the distribution of such reports, from the Administrator at the Corporate Trust
Office or, if applicable, on the Administrator’s web-site specified in the
Series Supplement.

 

SECTION 2.11       Notices to Clearing Agency.  With respect to any Notes which are Book
Entry Notes, whenever a notice or other communication to the Noteholders is
required under this Indenture, unless and until Definitive Notes shall have
been issued to Note Owners pursuant to Section 2.12, the Indenture Trustee or
the Administrator, as the case may be, shall give all such notices and
communications specified herein to be given to Holders of the Notes to the
Clearing Agency, and shall have no obligation to the Note Owners.

 

SECTION 2.12       Definitive Notes.  If any Notes are Book-Entry Notes and if (i)
the Master Servicer advises the Indenture Trustee and the Administrator in
writing that the Clearing Agency is no longer willing or able to properly
discharge its responsibilities with respect to such Notes, and the Master
Servicer is unable to locate a qualified successor, (ii) the Master Servicer at
its option advises the Indenture Trustee and the Administrator 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, Note Owners representing
beneficial interests aggregating at least a majority of the Outstanding Amount
of the Notes advise the Indenture Trustee through 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 the Note Owners, then the Administrator,
in the case of (i)

 

15

 

and (ii), and the
Indenture Trustee, in the case of (iii), shall notify all Note Owners, the
Master Servicer, the Indenture Trustee and the Administrator of the occurrence
of any such event and of the availability of Definitive Notes to Note Owners
requesting the same.  Upon surrender to
the Administrator of the typewritten Note or Notes representing the Book-Entry
Notes by the Clearing Agency, accompanied by registration instructions, the
Issuer shall execute and upon the written direction of the Issuer the Administrator
shall authenticate the Definitive Notes in accordance with the instructions of
the Clearing Agency.  None of the Issuer,
the Note Registrar, the Indenture Trustee or the Administrator shall be liable
for any delay in delivery of such instructions and may conclusively rely on,
and shall be protected in relying on, such instructions.  Upon the issuance of Definitive Notes, the
Indenture Trustee, the Administrator and the Note Registrar shall recognize the
Holders of the Definitive Notes as Noteholders.

 

SECTION 2.13       Final Distribution.

 

(a)           The
Master Servicer on behalf of the Issuer shall give the Indenture Trustee and
the Administrator at least 15 days prior written notice of the Distribution
Date (or other date) on which the Noteholders of any Class may surrender their
Notes for payment of the final distribution on and cancellation of such
Notes.  Not later than the fifth day of
the month in which the final distribution in respect of such Class is payable
to Noteholders, the Administrator shall provide notice to the Noteholders of such
Class specifying (i) the date upon which final payment of such Class will
be made upon presentation and surrender of Notes (if required) of such Class at
the office or offices therein designated, (ii) the amount of any such
final payment and (iii) that the Record Date otherwise applicable to such
payment date is not applicable, payments being made only upon presentation and
surrender of such Notes at the office or offices therein specified.  Unless it is serving in the related
functions, the Administrator shall give such notice to the Note Registrar and
the Note Paying Agent at the time such notice is given to Noteholders.

 

(b)           Notwithstanding
a final distribution to the Noteholders of any Class, except as otherwise
provided in this paragraph, all funds then on deposit in the Collection Account
and the Trust Accounts shall continue to be held in trust for the benefit of
such Noteholders, and the Note Paying Agent or the Administrator shall pay such
funds to such Noteholders upon surrender of their Notes.  In the event that all such Noteholders shall
not surrender their Notes for cancellation within six months after the date
specified in the notice from the Administrator described in paragraph (a), the Administrator
shall give a second notice to the remaining such Noteholders to surrender their
Notes for cancellation and receive the final distribution with respect
thereto.  If within one year after the
second notice all such Notes shall not have been surrendered for cancellation,
the Administrator may take appropriate steps, or may appoint an agent to take
appropriate steps, to contact the remaining such Noteholders concerning
surrender of their Notes, and the cost thereof shall be paid out of the funds
in the account held for the benefit of such Noteholders.  The Administrator and the Note Paying Agent
shall upon written request pay to the Issuer any moneys held by them for the
payment of principal or interest that remains unclaimed for two years.  After payment to the Issuer, Noteholders entitled
to the money must look to the Issuer for payment as general unsecured creditors

 

16

 

unless an applicable abandoned property law designates another Person,
the Indenture Trustee, the Administrator or such Note Paying Agent with respect
to such trust money shall thereupon cease.

 

(c)           Any
notice required or permitted to be given to a Holder of Registered Notes shall
be given by first-class mail, postage prepaid, at the address of such Holder as
shown in the Note Register.

 

ARTICLE III.

Covenants

 

SECTION 3.1         Payment of Principal and Interest.  The Issuer will duly and punctually pay or
cause to be paid the principal of and interest on the Notes in accordance with
the terms of the Notes, this Indenture and the Series Supplement.  Amounts properly withheld under the Code by
any Person from a payment to any Noteholder of interest and/or principal shall
be considered as having been paid by the Issuer to such Noteholder for all
purposes of this Indenture.

 

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

 

SECTION 3.3         Money for Payments to be Held in
Trust.  One Business Day prior to
each Distribution Date, the Issuer shall deposit or cause to be deposited to
the Collection Account Available Funds (which shall be immediately available)
with respect to the related Collection Period. 
Such sum shall be held in trust for the benefit of the Persons entitled
thereto and (unless the Note Paying Agent is the Administrator), the Issuer
shall promptly notify the Administrator of its action or failure so to act.

 

The Issuer hereby appoints the Person serving as Administrator as Note
Paying Agent to make payments to Noteholders on behalf of the Issuer in
accordance with the provisions of the Notes, this Indenture and the Series
Supplement, and such Person hereby accepts such appointment (subject to removal
in the event it no longer serves as Administrator pursuant to Section 6.18).

 

The Issuer will cause each Note Paying Agent other than the Indenture
Trustee or the Administrator to execute and deliver to the Indenture Trustee an

 

17

 

instrument in which such Note Paying Agent shall agree
with the Indenture Trustee (and if the Indenture Trustee or the Administrator acts
as Note Paying Agent with respect to clauses (i) and (v), it hereby so agrees),
subject to the provisions of this Section, that such Note Paying Agent will:

 

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

 

(ii)                   give the
Indenture Trustee written notice of any default by the Issuer of which a
Responsible Officer of the Note Paying Agent has actual knowledge (or any other
obligor upon the Notes) in the making of any payment required to be made with
respect to the Notes;

 

(iii)                  at any time
during the continuance of any such default, upon the written request of the
Indenture Trustee, forthwith pay to the Indenture Trustee all sums so held in
trust by such Note Paying Agent;

 

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

 

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

 

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

 

The Issuer hereby appoints the Person serving as Administrator, as
Certificate Paying Agent to make payments to Certificateholders on behalf of
the Issuer in accordance with the provisions of the Certificates, this
Indenture and the Trust Agreement, and such Person hereby accepts such
appointment (subject to removal in the event it no longer serves as Administrator
pursuant to Section 6.18) and further agrees that it will be bound by the
provisions of the Trust Agreement relating to the Certificate Paying Agent and
will:

 

(i)                    hold all
sums held by it for the payment of amounts due with respect to the Certificates
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 

 

18

 

provided and as
provided in the Trust Agreement and pay such sums to such Persons as herein and
therein provided;

 

(ii)                   give the
Owner Trustee notice of any default by the Issuer of which a Responsible
Officer of the Certificate Paying Agent has actual knowledge in the making of
any payment required to be made with respect to the Certificates;

 

(iii)                  at any time
during the continuance of any such default, upon the written request of the
Owner Trustee forthwith pay to the Owner Trustee on behalf of the Issuer all
sums so held in Trust by such Certificate Paying Agent;

 

(iv)                  immediately
resign as a Certificate Paying Agent and forthwith pay to the Owner Trustee on
behalf of the Issuer all sums held by it in trust for the payment of
Certificates if at any time it ceases to meet the standards required to be met
by a Note Paying Agent at the time of its appointment; and

 

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

 

SECTION 3.4         Existence.  Except as otherwise permitted by the
provisions of Section 3.10, the Issuer will keep in full effect its existence,
rights and franchises as a statutory trust under the laws of the State of
Delaware (unless it becomes, or any successor Issuer hereunder is or becomes,
organized under the laws of any other state or of the United States of America,
in which case the Issuer will keep in full effect its existence, rights and
franchises under the laws of such other jurisdiction) and will 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 Series Supplement, the Notes and each
other instrument or agreement included in the Series Trust Estate.

 

SECTION 3.5         Protection of Series Trust Estate.  The Issuer intends the security interest
Granted pursuant to this Indenture and the Series Supplement in favor of the
Secured Parties to be prior to all other liens in respect of the Series Trust
Estate, and the Issuer shall take all actions necessary to obtain and maintain,
in favor of the Indenture Trustee for the benefit of the Secured Parties a
first lien on and a first priority, perfected security interest in the Series
Trust Estate.  The Issuer will: (a) from
time to time prepare (or shall cause to be prepared), execute and deliver all
such supplements and amendments hereto and all such financing statements,
continuation statements, instruments of further assurance and other
instruments, (b) authenticate such records, and (c) take such other action
necessary or advisable to:

 

(i)                    Grant more
effectively all or any portion of the Series Trust Estate;

 

19

 

(ii)                   maintain or
preserve the lien and security interest (and the priority thereof) in favor of
the Indenture Trustee for the benefit of the Secured Parties created by this
Indenture and the Series Supplement or carry out more effectively the purposes
hereof;

 

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

 

(iv)                  enforce any
of the Series Trust Estate;

 

(v)                   preserve and
defend title to the Series Trust Estate and the rights of the Indenture Trustee
in such Series Trust Estate against the claims of all persons and parties; and

 

(vi)                  pay all
taxes or assessments levied or assessed upon the Series Trust Estate when due.

 

SECTION 3.6         Opinions as to Series Trust Estate.

 

(a)           On
the Closing Date, 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 and filing of this Indenture, the
Series Supplement, and any other requisite documents, and with respect to the
execution and filing of any financing statements and continuation statements,
as are necessary to perfect and make effective the first priority lien and
security interest in favor of the Indenture Trustee for the benefit of the
Secured Parties, created by this Indenture and the Series Supplement and
reciting the details of such action, or stating that, in the opinion of such
counsel, no such action is necessary to make such perfected lien and security
interest effective.

 

(b)           On
or before March 31 of each year, beginning with March 31, 2006, the Master
Servicer on behalf of 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, the Series Supplement and any other requisite
documents, with respect to the execution and filing of any financing statements
and continuation statements, and with respect to the authentication of such
records as are necessary to maintain the lien and security interest created by
this Indenture and the Series Supplement and reciting the details of such
action or stating that in the opinion of such counsel no such action is
necessary to maintain such lien and security interest.  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, the execution
and filing of any financing statements and continuation statements and the
authentication of such records that will, in the opinion of such counsel, be
required to maintain the lien and security interest of this Indenture and the
Series Supplement until March 31 of the following year.

 

20

 

SECTION 3.7         Performance of Obligations; Servicing of Receivables.

 

(a)           The
Issuer will not take any action and will use its best efforts not to 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 Series 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
ordered by any bankruptcy or other court or as expressly provided in this
Indenture and the Basic Documents or such other instrument or agreement.

 

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

 

(c)           The
Issuer will punctually perform and observe all of its obligations and
agreements contained in this Indenture and the Basic Documents and in the
instruments and agreements included in the Series Trust Estate, including, but
not limited, to preparing (or causing to be prepared) and filing (or causing to
be filed) all UCC financing statements and continuation statements required to
be filed by the terms of this Indenture, the Series Supplement and the Master
Sale and Servicing 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.

 

(d)           If
a Responsible Officer of the Owner Trustee shall have actual knowledge of the
occurrence of a Master Servicer Termination Event under the Master Sale and
Servicing Agreement, the Issuer shall promptly notify the Indenture Trustee,
the Administrator and the Rating Agencies thereof in accordance with Section
11.4, and shall specify in such notice the action, if any, the Issuer is taking
in respect of such default.  If a Master
Servicer Termination Event shall arise from the failure of the Master Servicer
to perform any of its duties or obligations under the Master Sale and Servicing
Agreement with respect to the Receivables, the Issuer shall take all reasonable
steps available to it to remedy such failure.

 

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

 

(i)                    except as
expressly permitted by this Indenture or the Basic Documents, sell, transfer,
exchange or otherwise dispose of any of the properties or assets of the Issuer,
including those included in the Series Trust Estate;

 

21

 

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

 

(iii)                  (A) permit
the validity or effectiveness of this Indenture or the Series Supplement to be
impaired, or permit the lien in favor of the Indenture Trustee created by this
Indenture to be amended, hypothecated, subordinated, terminated or discharged,
or permit any Person to be released from any covenants or obligations with
respect to the Notes under this Indenture or the Series Supplement except as
may be expressly permitted hereby, (B) permit any lien, charge, excise, claim,
security interest, mortgage or other encumbrance (other than the lien of this
Indenture and the Series Supplement) to be created on or extend to or otherwise
arise upon or burden the Series Trust Estate or any part thereof or any
interest therein or the proceeds thereof (other than tax liens, mechanics’
liens and other liens that arise by operation of law, in each case on a Financed
Vehicle and arising solely as a result of an action or omission of the related
Obligor), (C) permit the lien of this Indenture and the Series Supplement not
to constitute a valid first priority (other than with respect to any such tax,
mechanics’ or other lien) security interest in the Series Trust Estate, (D)
except as expressly permitted therein, amend, modify or fail to comply with the
provisions of the Basic Documents or (E) except as expressly permitted
therein, amend, modify or fail to comply with the provisions of the Related
Documents.

 

SECTION 3.9         Annual Statement as to Compliance.  The Master Servicer on behalf of the Issuer
will deliver to the Indenture Trustee, on or before March 31 of each year
(commencing with March 31, 2006), and otherwise in compliance with the
requirements of TIA Section 314(a)(4) an Officer’s Certificate stating, as to
the Authorized Officer signing such Officer’s Certificate, that

 

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

 

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

 

SECTION 3.10       Issuer May Consolidate, Etc. Only on Certain Terms.

 

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

 

22

 

(i)                    the Person
(if other than the Issuer) formed by or surviving such consolidation or merger shall
be a Person organized and existing under the laws of the United States of
America or any State and shall expressly assume, by an indenture supplemental
hereto, executed and delivered to the Indenture Trustee and the Administrator,
in form satisfactory to the Indenture Trustee, the due and punctual payment of
the principal of and interest on all Notes and the performance or observance of
every agreement and covenant of this Indenture and the Series Supplement on the
part of the Issuer to be performed or observed, all as provided herein;

 

(ii)                   immediately
after giving effect to such transaction, no Default or Event of Default shall
have occurred and be continuing under the Series Supplement;

 

(iii)                  the Rating
Agency Condition shall have been satisfied with respect to such transaction;

 

(iv)                  the Issuer
shall have received an Opinion of Counsel (and shall have delivered copies thereof
to the Indenture Trustee and the Owner Trustee) to the effect that such
transaction will not cause the Trust to be treated as an association or
publicly traded partnership taxable as a corporation for federal income tax
purposes, or cause the Notes to fail to qualify as debt for federal income tax
purposes;

 

(v)                   any action
as is necessary to maintain the lien and security interest created by this
Indenture and the Series Supplement shall have been taken;

 

(vi)                  the Issuer
shall have delivered to the Indenture Trustee an Officer’s Certificate and an
Opinion of Counsel each stating that such consolidation or merger comply with
this Article III and that all conditions precedent herein provided for relating
to such transaction have been complied with (including any filing required by
the Exchange Act); and

 

(b)           The
Issuer shall not convey or transfer all or substantially all of its properties
or assets, including those included in the Series Trust Estate, to any Person,
unless

 

(i)                    the Person
that acquires by conveyance or transfer the properties and assets of the Issuer
the conveyance or transfer of which is hereby restricted shall (A) be a United
States citizen or a Person organized and existing under the laws of the United
States of America or any state, (B) expressly assume, by an indenture
supplemental hereto, executed and delivered to the Indenture Trustee, in form
satisfactory to the Indenture Trustee, the due and punctual payment of the
principal of and interest on all Notes and the performance or observance of
every agreement and covenant of this Indenture, the Series Supplement, each of
the Basic Documents and each of the Related Documents on

 

23

 

the part of the
Issuer to be performed or observed, all as provided herein, (C) expressly agree
by means of such Indenture Supplement that all right, title and interest so
conveyed or transferred shall be subject and subordinate to the rights of
Holders of the Notes, (D) unless otherwise provided in such Series Supplement,
expressly agree to indemnify, defend and hold harmless the Issuer against and
from any loss, liability or expense arising under or related to this Indenture,
the Series Supplement and the Notes and (E) expressly agree by means of such
Series Supplement that such Person (or if a group of persons, then one
specified Person) shall prepare (or cause to be prepared) and make all filings
with the Commission (and any other appropriate Person) required by the Exchange
Act in connection with the Notes;

 

(ii)                   immediately
after giving effect to such transaction, no Default or Event of Default shall
have occurred and be continuing under the Series Supplement;

 

(iii)                  the Rating
Agency Condition shall have been satisfied with respect to such transaction;

 

(iv)                  the Issuer
shall have received an Opinion of Counsel (and shall have delivered copies
thereof to the Indenture Trustee) to the effect that such transaction will not cause
the Trust to be treated as an association or publicly traded partnership
taxable as a corporation for federal income tax purposes, or cause the Notes to
fail to qualify as debt for federal income tax purposes;

 

(v)                   any action
as is necessary to maintain the lien and security interest created by this
Indenture and the Series Supplement shall have been taken; and

 

(vi)                  the Issuer
shall have delivered to the Indenture Trustee an Officers’ Certificate and an
Opinion of Counsel each stating that such conveyance or transfer and such
Indenture Supplement complies with this Article III and that all conditions
precedent herein provided for relating to such transaction have been complied
with (including any filing required by the Exchange Act).

 

SECTION 3.11       Successor or Transferee.

 

(a)           Upon
any consolidation or merger of the Issuer in accordance with Section 3.10(a),
the Person formed by or surviving such consolidation or merger (if other than
the Issuer) shall succeed to, and be substituted for, and may exercise every
right and power of, the Issuer under this Indenture and the Series Supplement
with the same effect as if such Person had been named as Issuer herein.

 

(b)           Upon
a conveyance or transfer of all the assets and properties of the Issuer
pursuant to Section 3.10(b), HSBC Automotive Trust 2005-1 will be released from
every covenant and agreement of this Indenture and the Series Supplement to be
observed or performed on the part of the Issuer with respect to the Notes immediately

 

24

 

upon the delivery of written notice to the Indenture Trustee stating
that HSBC Automotive Trust 2005-1 is to be so released.

 

SECTION 3.12       No Other Business.  The Issuer shall not engage in any business
other than financing, purchasing, owning, selling and managing the Receivables,
entering and maintaining any ancillary agreement related to issuance of the
Notes and owning the Class SV Preferred Stock of the Seller in the manner
contemplated by this Indenture, the Basic Documents and the Series Supplement
and all Related Documents and activities incidental thereto.

 

SECTION 3.13       No Borrowing.  The Issuer shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
Indebtedness except for (i) the Notes, (ii) obligations owing from time to time
to a Series Support Provider under the related agreement regarding Series
Support, if any and (iii) any other Indebtedness permitted by or arising under
the Basic Documents and the Series Supplement. 
The proceeds of the Notes and the Certificates of a Series shall be used
exclusively to fund the Issuer’s purchase of the Receivables of such Series, or
to obtain release of the lien relating to the pledge of the Receivables for a
prior series of notes issued by the Issuer, the purchase of related property of
the Series Trust Estate, to fund any trust account and to pay the Issuer’s
organizational, transactional and start-up expenses.

 

SECTION 3.14       Master Servicer’s Obligations.  The Issuer shall enforce the provisions of
Sections 4.9, 4.10 and 4.11 of the Master Sale and Servicing Agreement with
respect to the duties of Master Servicer thereunder.

 

SECTION 3.15       Guarantees, Loans, Advances and Other
Liabilities.  Except as contemplated
by the Master Sale and Servicing Agreement or this Indenture or the Series
Supplement, 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 continently 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 3.16       Capital Expenditures.  The Issuer shall not make any expenditure (by
long-term or operating lease or otherwise) for capital assets (either realty or
personally).

 

SECTION 3.17       Compliance with Laws.  The Issuer shall comply with the requirements
of all applicable laws, the non-compliance with which would, individually or in
the aggregate, materially and adversely affect the ability of the Issuer to
perform its obligations under the Notes, this Indenture, or any Basic Document,
the Series Supplement or any Related Document.

 

25

 

SECTION 3.18       Restricted Payments.  The Issuer shall not, directly or indirectly,
(i) pay any dividend or make any distribution (by reduction of capital or
otherwise), whether in cash, property, securities or a combination thereof, to
the Owner Trustee or any owner of a beneficial interest in the Issuer or
otherwise with respect to any ownership or equity interest or security in or of
the Issuer or to the Seller, (ii) redeem, purchase, retire or otherwise acquire
for value any such ownership or equity interest or security or (iii) 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 Seller, the
Master Servicer, the Owner Trustee, the Indenture Trustee, the Administrator
and the Certificateholders as permitted by, and to the extent funds are
available for such purpose under, the Master Sale and Servicing Agreement or
Trust Agreement.  The Issuer will not,
directly or indirectly, make payments to or distributions from the Collection
Account except in accordance with this Indenture, the Basic Documents, the
Series Supplement or any Related Document.

 

SECTION 3.19       Notice of Events of Default.  Upon a Responsible Officer of the Owner
Trustee having actual knowledge thereof, the Issuer agrees to give the
Indenture Trustee, the Administrator and the Rating Agencies prompt written
notice of each Event of Default under the Series Supplement and each default on
the part of the Master Servicer or the Seller of its obligations under the
Master Sale and Servicing Agreement.

 

SECTION 3.20       Further Instruments and Acts.  Upon request of the Indenture Trustee or the
Administrator, as the case may be, the Issuer will execute and deliver such
further instruments and do such further acts as may be reasonably necessary or
proper to carry out more effectively the purpose of this Indenture.

 

SECTION 3.21       Amendments of Master Sale and
Servicing Agreement and Trust Agreement. 
The Issuer shall not agree to any amendment to Section 13.1 of the
Master Sale and Servicing Agreement or Section 11.1 of the Trust Agreement to
eliminate the requirements thereunder that the Indenture Trustee, the
Administrator or the Holders of the Notes consent to amendments thereto as
provided therein.

 

SECTION 3.22       Income Tax Characterization.  For purposes of federal income, state and
local income and franchise and any other income taxes, the Issuer, the
Noteholders and the Certificateholders will treat the Notes as indebtedness and
hereby instruct the Indenture Trustee to treat the Notes as indebtedness for
federal and state tax reporting purposes.

 

ARTICLE IV.

Satisfaction and Discharge

 

SECTION 4.1         Satisfaction and Discharge of
Indenture.  This Indenture shall
cease to be of further effect with respect to the Notes except as to (i) rights
of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive
payments of principal thereof and

 

26

 

interest thereon, (iv)
Sections 3.3, 3.4, 3.5, 3.8, 3.10, 3.12, 3.13, 3.20, 3.21 and 3.22, (v) the
rights and immunities of the Indenture Trustee and the Administrator hereunder
(including the rights of the Indenture Trustee and the Administrator under
Section 6.7 and Section 6.17 and the obligations of the Indenture Trustee and
the Administrator under Section 4.2) and (vi) the rights of the Secured Parties
as beneficiaries hereof with respect to the Series Trust Estate so deposited
with the Indenture Trustee or the Administrator payable to all or any of them,
and the Indenture Trustee, on written demand of and at the expense of the
Issuer, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture with respect to the Notes, when either

 

(1)           all Notes
theretofore authenticated and delivered (other than (i) Notes that have been
destroyed, lost or stolen and that have been replaced or paid as provided in
Section 2.5 and (ii) Notes 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 Note Registrar for cancellation and the Series
Support, if any, has been returned to the Series Support Provider; or

 

(2)           all
Notes not theretofore delivered to the Note Registrar for cancellation

 

(i)            have become due and payable,

 

(ii)           will become due and payable at their
respective Final Scheduled Distribution Dates within one year, or

 

(iii)          are to be called for redemption within
one year under arrangements satisfactory to the Indenture Trustee and the
Administrator for the giving of notice of redemption by the Administrator, upon
the instructions of the Master Servicer or the Indenture Trustee, as the case
may be, in the name, and at the expense, of the Issuer,

 

and the Issuer, in the case of (i), (ii) or (iii)
above, has irrevocably deposited or caused to be irrevocably deposited with the
Administrator cash or direct obligations of or obligations guaranteed by the
United States of America (which will mature prior to the date such amounts are
payable), in trust for such purpose, in an amount sufficient to pay and
discharge the entire indebtedness on such Notes not theretofore delivered to
the Administrator for cancellation when due on the Final Scheduled Distribution
Date or tender date (if Notes shall have been called for redemption or tender
pursuant to the Series Supplement), as the case may be.

 

SECTION 4.2         Application of Trust Money.  All monies deposited with the Indenture
Trustee and/or the Administrator pursuant to Section 4.1 hereof shall

 

27

 

be held in trust and
applied by it, in accordance with the provisions of the Notes, this Indenture
and the Series Supplement, to the payment, either directly or through any Note
Paying Agent, as the Indenture Trustee and/or the Administrator, as the case
may be, may determine, to the Secured Parties for the payment or redemption of
which such monies have been deposited with the Indenture Trustee and/or the
Administrator, as the case may be, of all sums due and to become due thereon
for principal and interest; but such monies need not be segregated from other
funds except to the extent required herein or in the Master Sale and Servicing
Agreement or required by law.

 

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

 

ARTICLE V.

Remedies

 

SECTION 5.1         Events of Default.  The definition of “Event of Default” with
respect to a Series, together with certain rights and remedies consequent
thereto, shall be set forth in the Series Supplement.

 

SECTION 5.2         Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee.

 

(a)           Subject
to the terms of the Series Supplement, the Issuer covenants that if (i) default
is made in the payment of any interest on any Note when the same becomes due
and payable, and such default continues for a period of five days, or (ii)
default is made in the payment of the principal of or any installment of the
principal of any Note when the same becomes due and payable, and such default
continues for a period of five days, the Issuer will, upon demand of the
Indenture Trustee, pay to it or the Administrator, for the benefit of the
Secured Parties, the whole amount then due and payable on such Notes for
principal and interest, with interest upon the overdue principal, and, to the
extent payment at such rate of interest shall be legally enforceable, upon
overdue installments of interest, at the applicable Note Rate and in addition
thereto such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Indenture Trustee and its agents and outside
counsel.

 

(b)           If
an Event of Default occurs and is continuing with respect to a Series, the
Indenture Trustee may in its discretion proceed to protect and enforce the
rights of the Secured Parties 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 the Series Supplement or 

 

28

 

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, the Series Supplement or by law.

 

(c)           In
case there shall be pending, relative to the Issuer or any other obligor upon
the Notes or any Person having or claiming an ownership interest in the Series
Trust Estate, proceedings under Title 11 of the United States Code or any other
applicable federal or state bankruptcy, insolvency or other similar law, or in
case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Issuer or its property or such other obligor or Person,
or in case of any other comparable judicial proceedings relative to the Issuer
or other obligor upon the Notes of such Series, or to the creditors or property
of the Issuer or such other obligor, the Indenture Trustee, irrespective of
whether the principal of any Notes of such Series shall then be due and payable
as therein expressed or by declaration or otherwise and irrespective of whether
the Indenture Trustee shall have made any demand pursuant to the provisions of
this Section, shall be entitled and empowered, by intervention in such
proceedings or otherwise:

 

(i)                    to file and
prove a claim or claims for the whole amount of principal and interest owing
and unpaid to the Secured Parties and to file such other papers or documents as
may be necessary or advisable in order to have the claims of the Indenture
Trustee against the Series Trust Estate (including any claim for reasonable
compensation to the Indenture Trustee and each predecessor Indenture Trustee,
and their respective agents, attorneys and outside counsel, and for
reimbursement of all expenses and liabilities incurred, and all advances made,
by the Indenture Trustee and each predecessor Indenture Trustee, except as a
result of negligence, bad faith or willful misconduct), of the Noteholders
allowed in such Proceedings;

 

(ii)                   unless
prohibited by applicable law and regulations, to vote on behalf of the Secured
Parties of such Series 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 received with respect to the Series Trust Estate and to distribute
all amounts received with respect to the claims of the Secured Parties 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 Secured Parties, in
each case against the Series Trust Estate 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 the Secured Parties to
make payments to the Indenture Trustee, and, in the event that the Indenture
Trustee shall consent to the making

 

29

 

of payments directly to the Secured Parties, to pay to the Indenture
Trustee such amounts as shall be sufficient to cover reasonable compensation to
the Indenture Trustee, each predecessor Indenture Trustee and their respective
agents, attorneys and counsel, and all other expenses and liabilities incurred,
and all advances made, by the Indenture Trustee and each predecessor Indenture
Trustee except as a result of negligence or bad faith.

 

(d)           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 Secured
Party any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Holder thereof or to authorize the
Indenture Trustee to vote in respect of the claim of any Secured Party in any
such proceeding except, as aforesaid, to vote for the election of a trustee in
bankruptcy or similar person.

 

(e)           All
rights of action and of asserting claims under this Indenture, the Series
Supplement or under any of the Notes, may be enforced by the Indenture Trustee
without the possession of any of the Notes or the production thereof in any
trial or other proceedings relative thereto, and any such action or proceedings
instituted by the Indenture Trustee shall be brought in its own name as trustee
of an express trust, and any recovery of judgment, subject to the payment of
the expenses, disbursements and compensation of the Indenture Trustee, each
predecessor Indenture Trustee and their respective agents and attorneys, shall
be for the ratable benefit of the Secured Parties.

 

(f)            In
any proceedings brought by the Indenture Trustee (and also any proceedings
involving the interpretation of any provision of this Indenture or the Series
Supplement), the Indenture Trustee shall be held to represent all the Secured
Parties, and it shall not be necessary to make any Secured Party a party to any
such proceedings.

 

SECTION 5.3         Limitation of Suits.  No Holder of any Note shall have any right to
institute any proceeding, judicial or otherwise, with respect to this Indenture
or the Series Supplement, or for the appointment of a receiver or trustee, or
for any other remedy hereunder, unless:

 

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

 

(ii)                   the Holders
of not less than 25% of the Outstanding Amount of the Notes 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;

 

(iii)                  such Holder
or Holders have offered to the Indenture Trustee indemnity reasonably
satisfactory to it against the costs, expenses and liabilities to be incurred
in complying with such request;

 

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

 

30

 

(v)                   no direction
inconsistent with such written request has been given to the Indenture Trustee
during such 60-day period by the Holders of a majority of the Outstanding
Amount of the Notes of such Series;

 

it being understood and intended that no Holders of Notes 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 Holders of Notes 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.

 

SECTION 5.4         Unconditional Rights of Noteholders
To Receive Principal and Interest. 
Notwithstanding any other provisions in this Indenture, the Holder of
any Note shall have the right, which is absolute and unconditional, to receive
payment of the principal of and interest, if any, on such Note on or after the
respective due dates thereof expressed in such Note or in this Indenture or the
Series Supplement (or, in the case of redemption or tender pursuant to the
Series Supplement, on or after the related redemption or tender date) and to
institute a suit for the enforcement of any such payment, and such right shall
not be impaired without the consent of such Holder.

 

SECTION 5.5         Restoration of Rights and Remedies.  If the Indenture Trustee or any Noteholder
has instituted any Proceeding to enforce any right or remedy under this
Indenture or the Series Supplement and such Proceeding has been discontinued or
abandoned for any reason, then and in every such case the Issuer, the Indenture
Trustee and the related Noteholders shall, subject to any determination in such
Proceeding, be restored severally and respectively to their former positions
hereunder, and thereafter all rights and remedies of the Indenture Trustee and
the related Noteholders shall continue as though no such proceeding had been
instituted.

 

SECTION 5.6         Rights and Remedies Cumulative.  No right or remedy herein conferred upon or
reserved to any Noteholders is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

 

SECTION 5.7         Delay or Omission Not a Waiver.  No delay or omission of the Indenture
Trustee, any Controlling Party or any Holder of any related Note to exercise
any right or remedy accruing upon any Default or Event of Default shall impair
any such right or remedy or constitute a waiver of any such Default or Event of
Default or an acquiescence therein. 
Every right and remedy given by this Article V or by law to the
Indenture Trustee or to any Noteholders may be exercised from time to time, and
as often as may be deemed expedient, by the Indenture Trustee or by the related
Noteholders, as the case may be.

 

31

 

SECTION 5.8         Limitation on Voting of Preferred
Stock; Control by Noteholders.

 

(a)           Notwithstanding
any provision of any Related Document to the contrary, the Indenture Trustee
shall hold the Class SV Preferred Stock in trust for the benefit of the Secured
Parties and shall vote such stock only pursuant to the written instructions of
the Holders of a majority of the Outstanding Amount of the Notes.

 

(b)           The
Controlling Party shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Indenture Trustee
with respect to the Notes of such Series or exercising any trust or power
conferred on the Indenture Trustee; provided that

 

(i)                    such
direction shall not be in conflict with any rule of law or with this Indenture
or with the Series Supplement; and

 

(ii)                   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
involve it in liability or might materially adversely affect the rights of any
Noteholders not consenting to such action.

 

SECTION 5.9         Waiver of Past Defaults. The
Controlling Party may waive any Default or Event of Default relating to the
Notes and its consequences except a Default (a) in payment of principal of or
interest on any of the Notes or (b) in respect of a covenant or provision
hereof which cannot be modified or amended without the consent of the Holder of
each Note.  In the case of any such
waiver, the Issuer, the Indenture Trustee and the Holders of the Notes shall be
restored to their former positions and rights hereunder, respectively; but no
such waiver shall extend to any subsequent or other Default or impair any right
consequent thereto.

 

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

 

SECTION 5.10       Undertaking for Costs.  All parties to this Indenture and the Series
Supplement agree, and each Holder of any Note by such Holder’s acceptance
thereof shall be deemed to have agreed, that any court may in its discretion
require, in any suit for the enforcement of any right or remedy under this
Indenture and the Series Supplement, or in any suit against the Indenture
Trustee for any action taken, suffered or omitted by it as Indenture Trustee,
the filing by any party litigant in such suit of an undertaking to pay the
costs of such suit, and that such court may in its discretion assess reasonable
costs, including reasonable attorneys’ fees, against any party litigant in such
suit, having due regard to the merits and good faith of the claims or defenses
made by such party litigant; but the provisions of this Section shall not apply
to (a) any suit instituted by the Indenture Trustee, (b) any suit instituted by
any Noteholder, or group of Noteholders, in each case holding in the aggregate
more than 10% of the Outstanding

 

32

 

Amount of the Notes or (c)
any suit instituted by any Noteholder for the enforcement of the payment of
principal of or interest on any Note on or after the respective due dates
expressed in such Note and in this Indenture and the Series Supplement.

 

SECTION 5.11       Waiver of Stay or Extension Laws.  The Issuer covenants (to the extent that it
may lawfully do so) that it will not at any time insist upon, or plead or in
any manner whatsoever, claim or take the benefit of, any stay or extension law
wherever enacted, now or at any time hereafter in force, that may affect the
covenants or the performance of this Indenture and the Series Supplement; and
the Issuer (to the extent that it may lawfully do so) hereby expressly waives
all benefit of any such law, and covenants that it will not hinder, delay or
impede the execution of any power herein granted to the Indenture Trustee, but
will suffer and permit the execution of every such power as though no such law
had been enacted.

 

SECTION 5.12       Action on Notes.  The Indenture Trustee’s right to seek and
recover judgment on the Notes or under this Indenture or the Series Supplement
shall not be affected by the seeking, obtaining or application of any other
relief under or with respect to this Indenture or the Series Supplement.  Neither the lien of this Indenture or the
Series Supplement nor any rights or remedies of the Indenture Trustee or the Noteholders
shall be impaired by the recovery of any judgment by the Indenture Trustee against
the Issuer or by the levy of any execution under such judgment upon any portion
of the Series Trust Estate or upon any of the assets of the Issuer.

 

SECTION 5.13       Performance and Enforcement of Certain Obligations.

 

(a)           Promptly
following a request from the Indenture Trustee to do so and at the Master
Servicer’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 Master Servicer, as applicable, of each of
their obligations to the Issuer under or in connection with the Master Sale and
Servicing 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 Master 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 Master
Servicer thereunder and the institution of legal or administrative actions or
proceedings to compel or secure performance by the Seller or the Master
Servicer of each of their obligations under the Master Sale and Servicing
Agreement.

 

(b)           If
an Event of Default has occurred and is continuing, the Indenture Trustee in
its discretion may, and at the written direction of the Holders of 66-2/3% of
the Outstanding Amount of the Notes shall, exercise all rights, remedies,
powers, privileges and claims of the Issuer against the Seller or the Master
Servicer under or in connection with the Master 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 Master Servicer of each of their obligations
to the Issuer thereunder and to give any consent, request, notice, direction,
approval, extension or waiver under the Master Sale

 

33

 

and Servicing Agreement, and any right of the Issuer to take such
action shall be suspended.

 

ARTICLE VI.

The Indenture Trustee and the Administrator

 

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 the other
Basic Documents and use the same degree of care and skill in its exercise as a
prudent person would exercise or use under the circumstances in the conduct of
such person’s own affairs.

 

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

 

(i)                    the
Indenture Trustee undertakes to perform with respect to such Series such duties
and only such duties as are specifically set forth in this Indenture and the other
Basic Documents to which it is a party and no implied covenants or obligations
shall be read into this Indenture or the other Basic Documents against the
Indenture Trustee; and

 

(ii)                   in the
absence of bad faith on its part, the Indenture Trustee may conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Indenture Trustee as
the case may be and conforming to the requirements of this Indenture and the other
Basic Documents; however, the Indenture Trustee shall examine the certificates
and opinions to determine whether or not they conform on their face to the
requirements of this Indenture and the other Basic Documents provided, further,
that the Indenture Trustee shall not be responsible for the accuracy or content
of any resolution, certificate, statement, opinion, report, document, order or
other instrument furnished to it, including, without limitation, any
statistical, numerical or financial data contained therein.

 

(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;

 

(ii)                   the
Indenture Trustee shall not be liable for any error of judgment made in good
faith by a Responsible Officer unless it is proven that the Indenture Trustee
was negligent in ascertaining the pertinent facts; and

 

34

 

(iii)                  the
Indenture Trustee shall not be liable with respect to any action it takes or
omits to take in good faith in accordance with a direction received by it
pursuant to Section 5.8.

 

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

 

(e)           Money
held in trust by the Indenture Trustee, if any, need not be segregated from
other funds except to the extent required by law or the terms of this
Indenture, the Series Supplement or the Master Sale and Servicing Agreement.

 

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

 

(g)           Every
provision of this Indenture and the other Basic Documents relating to the
conduct or affecting the liability of or affording protection to the Indenture
Trustee shall be subject to the provisions of this Section and to the
provisions of the TIA.

 

(h)           The
Indenture Trustee shall, and hereby agrees that it will, perform all of the
obligations and duties required of it under each Related Document to which it
is a party.

 

(i)            Without
limiting the generality of this Section 6.1, neither the Indenture Trustee nor
the Administrator shall have any duty (i) to see to any recording, filing or
depositing of this Indenture, the Series Supplement or any agreement referred
to herein or any financing statement evidencing a security interest in the
Financed Vehicles, or to see to the maintenance of any such recording or filing
or depositing or to any recording, refiling or redepositing of any thereof,
(ii) to see to any insurance of the Financed Vehicles or Obligors or to effect
or maintain any such insurance, (iii) 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,
(iv) to confirm or verify the contents of any reports or certificates delivered
to the Indenture Trustee pursuant to this Indenture, the Series Supplement or
the Master Sale and Servicing Agreement believed by the Indenture Trustee to be
genuine and to have been signed or presented by the proper party or parties, or
(v) to inspect the Financed Vehicles at any time or ascertain or inquire as to
the performance or observance of any of the Issuer’s, the Seller’s or the
Master Servicer’s representations, warranties or covenants or the Master
Servicer’s duties and obligations as Master Servicer and as custodian of the
Receivable Files under the Master Sale and Servicing Agreement.

 

(j)            In
no event shall the Indenture Trustee, in any of its capacities hereunder, be
deemed to have assumed any duties of the Owner Trustee under the Delaware Statutory
Trust Statute, common law, or the Trust Agreement.

 

35

 

SECTION 6.2         Rights of Indenture Trustee.

 

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

 

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

 

(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, or for the supervision of the
Master Servicer or any other agent, attorney, custodian or nominee appointed
with due care by it hereunder.

 

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

 

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

 

(f)            The
Indenture Trustee shall be under no obligation to institute, conduct or defend
any litigation under this Indenture or the Series Supplement or in relation to
this Indenture or the Series Supplement, at the request, order or direction of
any of the Holders of Notes, pursuant to the provisions of this Indenture or
the Series Supplement, unless such Holders of Notes shall have offered to the
Indenture Trustee reasonable security or indemnity against the costs, expenses
and liabilities that may be incurred therein or thereby; provided, however,
that the Indenture Trustee shall, upon the occurrence of an Event of Default
(that has not been cured), exercise the rights and powers vested in it by this
Indenture and the Series Supplement with reasonable care and skill customary
for the care and skill exercised by Indenture Trustees under similar
circumstances.

 

(g)           The
Indenture Trustee shall not be bound to make any investigation into the facts
or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond or other paper
or document unless required in writing to do so by any Holder of a Note; provided,
however, that if the payment within a reasonable time to the Indenture
Trustee of the costs, expenses or liabilities likely to be incurred by it in
the making of such investigation

 

36

 

is, in the opinion of the Indenture Trustee not reasonably assured to
the Indenture Trustee by the security afforded to it by the terms of this
Indenture, the Series Supplement or the Master Sale and Servicing Agreement,
the Indenture Trustee may require indemnity reasonably satisfactory to it
against such cost, expense or liability as a condition to so proceeding; the
reasonable expense of every such examination shall be paid by the Person making
such request.

 

(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.  For
purposes of clarification, the Indenture Trustee shall be under no obligation
hereunder to monitor the perfection of any security interest or the filing of
any financing statement or continuation statement in connection therewith.

 

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

 

(j)            Anything
in this Indenture or any supplement hereto to the contrary notwithstanding, in
no event shall the Indenture Trustee be liable for special, indirect or
consequential loss or damage of any kind whatsoever (including but not limited
to lost profits), even if the Indenture Trustee has been advised of the
likelihood of such loss or damage and regardless of the form of action.

 

(k)           The
Indenture Trustee shall not be required to take notice or be deemed to have
notice or knowledge of any default, Event of Default or Master Servicer
Termination Event unless a Responsible Officer of the Indenture Trustee shall
have actual notice thereof.

 

SECTION 6.3         Individual Rights of Indenture
Trustee.  The Indenture Trustee in
its individual or any other capacity may become the owner or pledgee of Notes
and may otherwise deal with the Issuer or its Affiliates with the same rights
it would have if it were not Indenture Trustee. 
Any Note Paying Agent, Note Registrar, co-registrar or co-paying agent
may do the same with like rights. 
However, the Indenture Trustee must comply with Sections 6.11 and 6.12.

 

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 Series Supplement, the Series Trust Estate or the Notes, it
shall not be accountable for the Issuer’s use of the proceeds from the Notes,
and it shall not be responsible for any statement of the Issuer in the
Indenture, in the Series Supplement or in any document issued in connection
with the sale of the Notes or in the Notes.

 

SECTION 6.5         Notice of Defaults.  If an Event of Default occurs and is
continuing and if it is either actually known by, or written notice of the
existence thereof has been delivered to, a Responsible Officer of the Indenture
Trustee, the Indenture Trustee shall mail to each Noteholder notice of the Event
of Default within 90 days after

 

37

 

such knowledge or notice
occurs.  Except in the case of an Event
of Default in payment of principal of or interest on any Note, the Indenture
Trustee may withhold the notice to Noteholders if and so long as a committee of
its Responsible Officers in good faith determines that withholding the notice
is in the interests of Noteholders.

 

SECTION 6.6         Reports by Master Servicer to
Holders.  Upon the written request of
any Noteholder to the Master Servicer, the Master Servicer shall on behalf of
the Issuer deliver to the Administrator for distribution to any Noteholder such
information as may be reasonably required by such Noteholder to enable such
Noteholder to prepare its federal and state income tax returns required by law.  The Administrator shall have no duty or
obligation to verify or confirm the contents of the information contained
therein.

 

SECTION 6.7         Indenture Trustee Compensation and Indemnification.

 

(a)           As
payable in the Series Supplement, the Issuer shall, or shall cause the Master
Servicer to, pay to the Indenture Trustee from time to time the Indenture
Trustee Fee as 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 Master 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, outside counsel, accountants and experts.  The Issuer shall or shall cause the Master
Servicer to indemnify the Indenture Trustee, and its respective officers,
directors, employees and agents against any and all loss, liability or expense
(including attorneys’ fees and expenses) incurred by each of them in connection
with the acceptance or the administration of this trust and the performance of
its duties hereunder.  The Indenture
Trustee shall notify the Issuer and the Master Servicer promptly of any claim
for which it may seek indemnity.  Failure
by the Indenture Trustee to so notify the Issuer and the Master Servicer shall
not relieve the Issuer of its obligations hereunder or the Master Servicer of its
obligations under Article XII of the Master Sale and Servicing Agreement.  The Issuer shall defend or shall cause the
Master Servicer to defend any claim for indemnity that may arise against the
Indenture Trustee, or the Indenture Trustee may have separate counsel and the
Issuer shall or shall cause the Master Servicer to pay the fees and expenses of
such counsel.  Neither the Issuer nor the
Master Servicer need reimburse any expense or indemnify against any loss,
liability or expense incurred by the Indenture Trustee through such Person’s
own willful misconduct, negligence or bad faith.

 

(b)           The
Issuer’s payment obligations to the Indenture Trustee pursuant to this Section
shall survive the resignation or removal of the Indenture Trustee and the
discharge of this Indenture.  When the
Indenture Trustee incurs expenses after the occurrence of an Insolvency Event
with respect to the Issuer, 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.  Notwithstanding anything else set forth in
any Related Documents, the Indenture Trustee agrees that the obligations of the
Issuer (but not the Master Servicer) to the Indenture Trustee hereunder

 

38

 

or under any other Related Documents, shall be recourse to the Series
Trust Estate only and specifically shall not be recourse to the assets of any
Securityholder.  In addition, the
Indenture Trustee agrees that its recourse to the Issuer, the Series Trust
Estate, the Seller and amounts held pursuant to the Series Support shall be
limited to the right to receive the distributions as provided for in the
payment priority provisions of the Series Supplement.

 

SECTION 6.8         Replacement of Indenture Trustee.  The Indenture Trustee may, and in the
circumstances specified in subparagraph (i) shall, resign at any time upon 60
days’ prior written notice by so notifying the Issuer, Holders of a majority of
Outstanding Amount of the Notes and the Master Servicer.  In addition, the Master Servicer may remove
the Indenture Trustee by so notifying the Indenture Trustee upon 60 days’
written notice.  The Issuer may and
shall, at the direction of the Noteholders, remove the Indenture Trustee, if:

 

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

 

(ii)                   a court
having jurisdiction in the premises in respect of the Indenture Trustee in an
involuntary case or proceeding under federal or state banking or bankruptcy
laws, as now or hereafter constituted, or any other applicable federal or state
bankruptcy, insolvency or other similar law, shall have entered a decree or
order granting relief or appointing a receiver, liquidator, assignee,
custodian, trustee, conservator, sequestrator (or similar official) for the
Indenture Trustee or for any substantial part of the Indenture Trustee’s
property, or ordering the winding-up or liquidation of the Indenture Trustee’s
affairs;

 

(iii)                  an
involuntary case under the federal bankruptcy laws, as now or hereafter in
effect, or another present or future federal or state bankruptcy, insolvency or
similar law is commenced with respect to the Indenture Trustee and such case is
not dismissed within 60 days;

 

(iv)                  the
Indenture Trustee commences a voluntary case under any federal or state banking
or bankruptcy laws, as now or hereafter constituted, or any other applicable
federal or state bankruptcy, insolvency or other similar law, or consents to
the appointment of or taking possession by a receiver, liquidator, assignee,
custodian, trustee, conservator, sequestrator (or other similar official) for
the Indenture Trustee or for any substantial part of the Indenture Trustee’s
property, or makes any assignment for the benefit of creditors or fails
generally to pay its debts as such debts become due or takes any corporate
action in furtherance of any of the foregoing;

 

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

 

(vi)                  the rating
assigned to the long-term unsecured debt obligations of the Indenture Trustee
by the Rating Agencies shall be lowered below the rating

 

39

 

of “BBB”, “Baa2”
or equivalent rating or be withdrawn by either of the Rating Agencies.

 

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 deliver a written notice of such removal, resignation or
vacancy to the Master Servicer, and the Master Servicer may appoint a successor
Indenture Trustee.  If the Master
Servicer fails to appoint such a successor Indenture Trustee, the Issuer or a
resigning Indenture Trustee may petition any court of competent jurisdiction to
appoint a successor Indenture Trustee. 
If the Indenture Trustee resigns or is removed, the Indenture Trustee
shall also resign or be removed, as the case may be, as Note Paying Agent, Note
Registrar and Certificate Paying Agent.

 

A successor Indenture Trustee shall deliver a written acceptance of its
appointment to the retiring Indenture Trustee, the Issuer and the Administrator.  Thereupon the resignation or removal of the
retiring Indenture Trustee shall become effective, and the successor Indenture
Trustee shall have all the rights, powers and duties of the retiring Indenture
Trustee under the Basic Documents.  The
successor Indenture Trustee shall mail a notice of its succession to
Noteholders.  The retiring Indenture
Trustee shall promptly transfer all property held by it as Indenture Trustee to
the successor Indenture Trustee.

 

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

 

Notwithstanding the replacement of the Indenture Trustee pursuant to
this Section, the Issuer’s and the Master 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.  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 entity without any further
act shall be the successor Indenture Trustee; provided that such
corporation or banking association shall otherwise be eligible under Section
6.11 hereof.  The Indenture Trustee shall
provide the Rating Agencies with written notice of any such transaction as soon
as practical thereafter.

 

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 any part
of the Trust may at the time be located, the Indenture Trustee shall have the
power and may execute and deliver all instruments to appoint one or more
Persons to act as a

 

40

 

co-trustee or co-trustees, or separate trustee or separate trustees, of
all or any part of the Series Trust Estate, and to vest in such Person or
Persons, in such capacity and for the benefit of the Secured Parties, such
title to the Series Trust Estate, or any part hereof, and, subject to the other
provisions of this Section, such powers, duties, obligations, rights and trusts
as the Indenture Trustee may consider necessary or desirable.  No co-trustee or separate trustee hereunder
shall be required to meet the terms of eligibility as a successor trustee under
Section 6.11 and no notice to Noteholders of the appointment of any co-trustee
or separate trustee shall be required under Section 6.8 hereof.  The cost and expense of such co-trustee or
co-trustees, and/or separate trustee or separate trustees, shall be a cost and
expense of the Indenture Trustee pursuant to Section 3.03(a)(ii) of the Series
Supplement.

 

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

 

(i)                    all rights,
powers, duties and obligations conferred or imposed upon the Indenture Trustee
shall be conferred or imposed upon and exercised or performed by the Indenture
Trustee and such separate trustee or co-trustee jointly (it being understood
that such separate trustee or co-trustee is not authorized to act separately
without the Indenture Trustee joining in such act), except to the extent that
under any law of any jurisdiction in which any particular act or acts are to be
performed the Indenture Trustee shall be incompetent or unqualified to perform
such act or acts, in which event such rights, powers, duties and obligations
(including the holding of title to the Trust 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 trustee
hereunder shall be personally liable by reason of any act or omission of any
other trustee hereunder, including acts or omissions of predecessor or
successor trustees; and

 

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

 

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

 

(d)           Any
separate trustee or co-trustee may at any time constitute the Indenture
Trustee, its agent or attorney-in-fact with full power and authority, to the
extent

 

41

 

not prohibited by law, to do any lawful act under or in respect of this
Indenture on its behalf and in its name. 
If any separate trustee or co-trustee shall die, dissolve, become
insolvent, become incapable of acting, resign or be removed, all of its
estates, properties, rights, remedies and trusts shall vest in and be exercised
by the Indenture Trustee, to the extent permitted by law, without the appointment
of a new or successor trustee.

 

SECTION 6.11       Eligibility: Disqualification.  The Indenture Trustee shall at all
times:  satisfy TIA § 310(a), have a
combined capital and surplus of at least $50,000,000 as set forth in its most
recent published annual report of condition, and have a long-term debt rating
of at least “BBB”, “Baa2” or equivalent rating from each of the Rating
Agencies.  The Indenture Trustee shall
comply with TIA § 310(b), including the optional provision permitted by
the second sentence of TIA § 310(b)(9); provided, however,
that there shall be excluded from the operation of TIA § 310(b)(1) any
indenture or indentures under which other securities of the Issuer are
outstanding if the requirements for such exclusion set forth in TIA § 310(b)(1)
are met.

 

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

 

SECTION 6.13       Representations and Warranties of the
Indenture Trustee.  The Indenture
Trustee represents and warrants to the Issuer as follows:

 

(a)           Due
Organization.  The Indenture Trustee
is a national banking association, duly organized, validly existing and in good
standing under the laws of the United States and is duly authorized and
licensed under applicable law to conduct its business as presently conducted.

 

(b)           Corporate
Power.  The Indenture Trustee has all
requisite right, power and authority to execute and deliver this Indenture, the
Series Supplement and any other Related Document to which it is a party and to
perform all of its duties as the Indenture Trustee hereunder.

 

(c)           Due
Authorization.  The execution and
delivery by the Indenture Trustee of this Indenture, the Series Supplement and
any other Related Documents to which it is a party, and the performance by the
Indenture Trustee of its duties hereunder and thereunder, have been duly authorized
by all necessary corporate proceedings which are required for the valid
execution and delivery by the Indenture Trustee, or the performance by the
Indenture Trustee, of this Indenture, the Series Supplement and such other
Related Documents.

 

(d)           Valid
and Binding Indenture.  The Indenture
Trustee has duly executed and delivered this Indenture, the Series Supplement
and each other Related Document to which it is a party, and each of this
Indenture, the Series Supplement and each other Related Document constitutes
the legal, valid and binding obligation of the Indenture Trustee enforceable
against the Indenture Trustee in accordance with its terms,

 

42

 

except as (i) such enforceability may be limited by bankruptcy,
insolvency, reorganization and similar laws relating to or affecting the
enforcement of creditors’ rights generally and (ii) the availability of
equitable remedies may be limited by equitable principles of general
applicability.

 

SECTION 6.14       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.

 

SECTION 6.15       No Consent to Certain Acts of Seller.  The Seller shall not request that the
Indenture Trustee consent to, nor shall the Indenture Trustee consent to any action
proposed to be taken by the Seller pursuant to Article FIFTEENTH of the Seller’s
Articles of Incorporation.

 

SECTION 6.16       Duties, Liabilities and Limitations on
Liability of Administrator.

 

(a)           The
Administrator shall undertake to perform such duties and only such duties as
are specifically set forth in this Indenture and the other Basic Documents to
which it is a party.  The duties and
obligations of the Administrator with respect to the Notes and the Certificates
and the Basic Documents to which it is a party shall be determined solely by
the express provisions of such Basic Documents, the Administrator shall not be
liable except for the performance of such duties and obligations as are
specifically set forth in the Basic Documents to which it is a party, and no
implied covenants or obligations shall be read into the Basic Documents against
the Administrator.

 

(b)           The
Administrator shall have all of the rights of, benefits of, and limitations on
liability afforded to, the Indenture Trustee under this Article VI to the same
extent as though the Administrator had been named in the various provisions of
Article VI, except (i) to the extent otherwise provided in Sections 6.17, 6.18
and 6.19 (for example, Section 6.17 shall apply instead of Section 6.7), (ii)
with respect to Section 6.4, the Adminstrator shall be responsible for the
Administrator’s certificate of authentication, and (iii) to the extent a
conflict arises between this Section 6.16 and another provision of this Article
VI, this Section 6.16 shall govern.  Such
rights, benefits and limitations will be accorded the Administrator, in its
capacity as such, under all of the Basic Documents.

 

(c)           In
acting under this Indenture and the other Basic Documents to which it is a
party and in connection with the Notes and the Ownership Interest, the
Administrator is acting solely as an agent of the Issuer and does not assume
any obligation or relationship of agency for or with, or any fiduciary
obligation towards, any of the Holders of the Notes.

 

(d)           The
Administrator shall be obligated to make payments pursuant to the terms of the Basic
Documents only if, and only to the extent that, sufficient funds are

 

43

 

available therefor in the Collection Account.  In no event shall the Administrator, in its
capacity as Administrator, Note Paying Agent or Certificate Paying Agent or in
its individual capacity, be liable for any such payments.

 

(e)           In
each case that the Administrator (including in its capacity as Note Paying
Agent or Certificate Paying Agent hereunder) may or is required hereunder or
under any other Basic Document to which it is a party to take any action (an “Action”),
including without limitation to make any determination or judgment (including
without limitation the proper reporting and/or withholding for federal income
tax purposes required with respect to any payment made under any Basic Document
for which the Administrator has a reporting and/or withholding obligation for federal
income tax purposes), to exercise rights or powers or otherwise act hereunder
or thereunder, the Administrator may seek direction from the Master
Servicer.  The Administrator shall not be
liable with respect to any Action taken or omitted to be taken by it in good
faith in accordance with the direction from the Master Servicer.  If the Administrator shall request direction
from the Master Servicer with respect to any Action, the Administrator shall be
entitled to refrain from such Action unless and until such Administrator shall have
received direction from the Master Servicer, and the Administrator shall not
incur liability to any Person by reason of so refraining.

 

(f)            The
Administrator may rely, and shall be fully protected in relying, on any
direction or instruction received from the Master Servicer, the Indenture
Trustee or any other party hereto or to the other Basic Documents.

 

(g)           The
Administrator shall not be responsible for filing any financing or continuation
statement or otherwise taking any action in connection with any security
interest or lien granted pursuant to the Basic Documents.

 

SECTION 6.17       Administrator Compensation and
Indemnification.

 

(a)           The
Administrator shall be entitled to such compensation as shall be mutually
agreed upon between it and the Master Servicer for its services hereunder and
under the other Basic Documents to which it is a party, including its roles as
Note Paying Agent and Certificate Paying Agent and Certificate Registrar under
the Trust Agreement.  The Administrator
agrees and acknowledges that it shall look solely to the Master Servicer for
payment of such compensation and it shall not be entitled to payment of such
compensation from the Issuer, the Indenture Trustee or out of the Series Trust
Estate.  The Issuer shall or shall cause
the Master Servicer to reimburse the Administrator 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 Administrator’s
agents, outside counsel, accountants and experts.

 

(b)           The
Administrator and any director, officer, employee or agent of the Administrator
shall be indemnified by the initial Master Servicer and held harmless by the
Master Servicer against any loss, liability or expense (including reasonable
attorney’s fees and expenses) arising out of, relating to or in connection with
(i) this

 

44

 

Indenture, the Notes and the other Basic Documents or in connection
with their respective duties hereunder or any legal action relating thereto,
other than any loss, liability or expense incurred by reason of willful
misconduct, negligence or bad faith in the performance of the Administrator’s
duties hereunder or thereunder and (ii) any audit, controversy or judicial
proceeding relating to a governmental taxing authority.

 

(c)           Notwithstanding
anything contained in this Indenture or any of the other Basic Documents to the
contrary, the indemnification provided for in this Section 6.17 shall survive
the payment of the Notes, the resignation or removal of the Administrator
and/or the satisfaction and discharge of this Indenture.

 

SECTION 6.18       Replacement of Administrator.

 

No resignation or removal of the Administrator and no appointment of a
successor Administrator shall become effective until the acceptance of
appointment by the successor Administrator pursuant to this Section.  The Administrator may resign at any time by
so notifying the Issuer.  The Issuer
shall remove the Administrator if:

 

(a)           the
Administrator fails to comply with Section 6.11 above;

 

(b)           the
Administrator is adjudged a bankrupt or insolvent;

 

(c)           a
receiver or other public officer takes charge of the Administrator or its
property; or

 

(d)           the
Administrator otherwise becomes incapable of acting.

 

If the Administrator resigns or is removed or if a vacancy exists in
the office of Administrator for any reason (the Administrator in such event
being referred to herein as the retiring Administrator), the Issuer shall
promptly appoint a successor Administrator.

 

A successor Administrator shall deliver a written acceptance of its
appointment to the retiring Administrator, the Issuer and the Indenture
Trustee.  Thereupon the resignation or
removal of the retiring Administrator shall become effective, and the successor
Administrator shall have all the rights, powers and duties of the Administrator
under this Indenture and the other Basic Documents to which it is a party.  The successor Administrator shall mail a
notice of its succession to Noteholders. 
The retiring Administrator shall promptly transfer all property held by
it as Administrator to the successor Administrator.

 

If a successor Administrator does not take office within 30 days after
the retiring Administrator resigns or is removed, the Indenture Trustee shall
perform the obligations of the Administrator hereunder until a successor
Administrator shall be appointed, and for so long as the Indenture Trustee serves
as Administrator hereunder, the Indenture Trustee shall be entitled to such
compensation in addition to its compensation pursuant to Section 6.7 hereunder
as the Master Servicer and the Indenture Trustee shall agree.

 

45

 

Notwithstanding the replacement of the Administrator
pursuant to this Section 6.18, the Master Servicer’s obligations under Section
6.17 above shall continue for the benefit of the retiring Administrator.

 

SECTION 6.19       Successor Administrator by Merger.

 

If the Administrator consolidates with, merges or converts into, or
transfers all or substantially all its corporate trust business or assets to,
another Person or banking association, the resulting, surviving or transferee
corporation without any further act shall be the successor Administrator;
provided, that such corporation or banking association shall be otherwise
qualified and eligible under Section 6.11 above.

 

In case, at the time such successor or successors by
merger, conversion or consolidation to the Administrator shall succeed to the
rights, duties and responsibilities created by this Indenture, any of the Notes
shall have been authenticated but not delivered, any such successor to the
Administrator may adopt the certificate of authentication, if any, of any
predecessor administrator, and deliver such Notes so authenticated; and in case
at that time any of the Notes shall not have been authenticated, any successor
to the Administrator may authenticate such Notes either in the name of any
predecessor hereunder or in the name of the successor to the Administrator; and
in all such cases such certificates shall have the full force which it is
anywhere in the Notes or in this Indenture provided that the certificate of the
Administrator shall have.

 

ARTICLE VII.

Noteholders’ Lists and Reports

 

SECTION 7.1         Issuer To Furnish To Indenture
Trustee and Administrator Names and Addresses of Noteholders.  The Issuer will furnish or cause to be
furnished to the Indenture Trustee and the Administrator with respect to each
Series of Notes (a) not more than five days after the earlier of (i) each
Record Date with respect to such Series and (ii) three months after the last
Record Date, a list, in such form as the Indenture Trustee and the Administrator
may reasonably require, of the names and addresses of the Holders with respect
to such Series as of such Record Date, (b) at such other times as the Indenture
Trustee and/or the Administrator may request in writing, within 30 days after
receipt by the Issuer of any such request, a list of similar form and content
as of a date not more than 10 days prior to the time such list is furnished; provided,
however, that so long as the Administrator is the Note Registrar, no
such list shall be required to be furnished to the Administrator.

 

46

 

SECTION 7.2         Preservation of Information;
Communications to Noteholders.  The
Indenture Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of the Holders contained in the most
recent list furnished to the Indenture Trustee as provided in Section 7.1.  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.

 

(a)           Noteholders
may communicate pursuant to TIA § 312(b) with other Noteholders with
respect to their rights under this Indenture or under the Notes.

 

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

 

SECTION 7.3         Reports by Issuer.

 

(a)           If
this Indenture is qualified under the TIA, the Issuer shall:

 

(i)                    file with
the Indenture Trustee, within 15 days after the Issuer is required to file the
same with the Commission, copies of the annual reports and copies 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;

 

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

 

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

 

(c)           The
Indenture Trustee shall not have any duty or obligation with respect to any
reports or other information delivered to it pursuant to this Section 7.3.

 

SECTION 7.4         Reports by Indenture Trustee.  If required by TIA § 313(a), within 60
days after each March 31 beginning with March 31, 2006 the Indenture Trustee
shall mail to each Noteholder as required by TIA § 313(c) a brief report
dated as of such date that complies with TIA § 313(a).  The Indenture Trustee also shall comply with
TIA § 313(b).

 

47

 

A copy of each report at the time of its mailing to Noteholders shall
be filed by the Indenture Trustee with the Commission and each stock exchange,
if any, on which the Notes are listed. 
The Issuer shall notify the Indenture Trustee if and when the Notes are
listed on any stock exchange.

 

ARTICLE VIII.

Accounts, Disbursements and Releases

 

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

 

SECTION 8.2         Release of Series Trust Estate.

 

(a)           Subject
to the payment of its fees and expenses pursuant to Section 6.7, and to the
extent not covered by Section 8.2(b), the Indenture Trustee may, and when
required by the Issuer and the provisions of this Indenture shall, execute
instruments to release property from the lien of this Indenture, in a manner
and under circumstances that are not inconsistent 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 Notes Outstanding and all
sums due the Indenture Trustee pursuant to Section 6.7 have been paid, release
any remaining portion of the Series Trust Estate that secured the Notes from
the lien of this Indenture and release (or direct the Administrator to release)
to the Issuer or any other Person entitled thereto any funds then on deposit in
the Trust Accounts.  The Indenture
Trustee shall release property from the lien of this Indenture pursuant to this
Section 8.2(b) only upon receipt of an Issuer Request accompanied by an Officer’s
Certificate, an Opinion of Counsel and (if required by the TIA) Independent
Certificates in accordance with TIA §§ 314(c) and 314(d)(1) meeting the
applicable requirements of Section 11.1.

 

48

 

SECTION 8.3         Opinion of Counsel.  The Indenture Trustee shall receive at least
seven days’ notice when requested by the Issuer to take any action pursuant to
Section 8.2(a), accompanied by copies of any instruments involved, and the
Indenture Trustee shall also require as a condition to such action, an Opinion
of Counsel, stating the legal effect of any such action, outlining the steps
required to complete the same, and concluding that all conditions precedent to
the taking of such action have been complied with and such action will not
materially and adversely impair the security for the Notes or the rights of the
Secured Parties in contravention of the provisions of this Indenture; provided,
however, that such Opinion of Counsel shall not be required to express
an opinion as to the fair value of the Series 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 in connection
with any such action.

 

ARTICLE IX.

Amendments; the Series Supplement

 

SECTION 9.1         Amendments Without Consent of Noteholders.

 

(a)           Except
as otherwise provided in the Series Supplement, without the consent of the
Holders of any Notes and with prior written notice to the Rating Agencies, as
evidenced to the Indenture Trustee, the Administrator and the Issuer, when
authorized by an Issuer Order, at any time and from time to time, the parties
hereto may enter into one or more amendments hereto, in form satisfactory to
the Indenture Trustee, the Administrator and the Owner 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 to the lien of this Indenture additional property;

 

(ii)                   to evidence
the succession, in compliance with the applicable provisions hereof, of another
person to the Issuer, and the assumption by any such successor of the covenants
of the Issuer herein and in the Notes contained;

 

(iii)                  to add to
the covenants of the Issuer, for the benefit of the Holders of the Notes, or to
surrender any right or power herein conferred upon the Issuer;

 

(iv)                  to convey,
transfer, assign, mortgage or pledge any property to or with the Indenture
Trustee;

 

(v)                   to cure any
ambiguity, to correct or supplement any provision herein or in the Series
Supplement which may be inconsistent with any other provision herein or in the
Series Supplement or to make any other provisions with respect to matters or
questions arising under this Indenture or in the Series

 

49

 

Supplement; provided
that such action shall not, as evidenced by an Opinion of Counsel, adversely
affect the interests of the Holders of the Notes;

 

(vi)                  to evidence
and provide for the acceptance of the appointment hereunder by a successor
trustee with respect to the Notes and to add to or change any of the provisions
of this Indenture as shall be necessary to facilitate the administration of the
trusts hereunder by more than one trustee, pursuant to the requirements of
Article VI; or

 

(vii)                 to modify,
eliminate or add to the provisions of this Indenture to such extent as shall be
necessary to effect the qualification of this Indenture under the TIA or under
any similar federal statute hereafter enacted and to add to this Indenture such
other provisions as may be expressly required by the TIA.

 

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

 

(b)           Except
as otherwise provided in the Series Supplement, the Issuer, the Administrator
and the Indenture Trustee, when authorized by an Issuer Order, may, also
without the consent of any of the Holders of the Notes and with prior written
notice to the Rating Agencies by the Issuer, as evidenced to the Administrator
and the Indenture Trustee, enter into an amendment hereto for the purpose of
adding any provisions to, or changing in any manner or eliminating any of the
provisions of, this Indenture or of modifying in any manner the rights of the
Holders of the Notes under this Indenture; provided, however,
that such action shall not, as evidenced by an Opinion of Counsel, adversely
affect in any material respect the interests of any Noteholder.

 

SECTION 9.2         Amendments With Consent of
Noteholders.  Except as otherwise
provided in the Series Supplement, the Issuer, the Administrator and the
Indenture Trustee, when authorized by an Issuer Order provided by the Master
Servicer, also may, with prior written notice to the Rating Agencies and with
the consent of the Holders of not less than a majority of the Outstanding
Amount of each Class of Notes affected thereby, by Act of such Holders
delivered to the Issuer, the Administrator and the Indenture Trustee, enter
into an amendment hereto for the purpose of adding any provisions to, or
changing in any manner or eliminating any of the provisions of, this Indenture
or of modifying in any manner the rights of the Holders of the Notes under this
Indenture; provided, however, that no such amendment shall,
without the consent of the Holder of each Outstanding Note affected thereby:

 

(i)            change the date of
payment of any installment of principal of or interest on any Note, or reduce
the principal amount thereof, the interest rate thereon, change the provision
of this Indenture relating to the application of collections on, or the
proceeds of the sale of, the Series Trust Estate to payment of principal of or
interest on the Notes, or change any place of payment where, or the coin or
currency in which, any Note or the interest thereon is payable;

 

50

 

(ii)           impair the right to
institute suit for the enforcement of the provisions of this Indenture
requiring the application of funds available therefor, as provided in Article
V, to the payment of any such amount due on the Notes on or after the
respective due dates thereof;

 

(iii)          reduce the percentage of
the Outstanding Amount of the Notes, the consent of the Holders of which is
required for any such Series Supplement, or the consent of the Holders of which
is required for any waiver of compliance with certain provisions of this
Indenture or certain defaults hereunder and their consequences provided for in
this Indenture;

 

(iv)          modify or alter the
provisions of the proviso to the definition of the term “Outstanding”;

 

(v)           reduce the percentage
of the Outstanding Amount of the Notes required to direct the Indenture Trustee
to direct the Issuer to sell or liquidate the Series Trust Estate pursuant to
Section 4.03 of the Series Supplement;

 

(vi)          modify any provision of
this Section except to increase any percentage specified herein or to provide
that certain additional provisions of this Indenture or the Basic Documents
cannot be modified or waived without the consent of the Holder of each
Outstanding Note affected thereby;

 

(vii)         modify any of the
provisions of this Indenture in such manner as to affect the calculation of the
amount of any payment of interest or principal due on any Note on any
Distribution Date (including the calculation of any of the individual
components of such calculation) or to affect the rights of the Holders of Notes
to the benefit of any provisions for the mandatory redemption of the Notes
contained in the Series Supplement; or

 

(viii)        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 Series Trust Estate or, except as otherwise
permitted or contemplated herein or in the Series Supplement or the Related
Documents, terminate the lien of this Indenture on any property at any time
subject hereto or deprive the Holder of any Note of the security provided by
the lien of this Indenture.

 

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

 

Promptly after the execution by the Issuer, the Administrator and the
Indenture Trustee of any amendment pursuant to this Section, the Indenture
Trustee shall mail to the Holders of the Notes to which such amendment relates
a notice setting forth in general terms the substance of such amendment.  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 amendment.

 

51

 

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

 

SECTION 9.3         Series Supplement Authorizing the Notes.

 

(a)           The
Notes issued hereunder shall be issued pursuant to the Series Supplement, which
shall set forth the terms and provisions of the Notes.

 

(b)           Amendments
to the Series Supplement shall be governed by the provisions of the Series
Supplement.

 

SECTION 9.4         Execution of the Series Supplement.
 The Indenture Trustee and the
Administrator shall be entitled to receive, and subject to Sections 6.1 and
6.2, shall be fully protected in relying upon, an Opinion of Counsel (and, if
requested, an Officer’s Certificate) stating that the execution of the Series
Supplement is authorized or permitted by this Indenture.

 

SECTION 9.5         Effect of Series Supplement.  Upon the execution of the Series Supplement
or any amendment pursuant to the provisions of the Series Supplement or hereof,
this Indenture shall be and be deemed to be modified and amended in accordance
therewith with respect to the Notes affected thereby, and the respective
rights, limitations of rights, obligations, duties, liabilities and immunities
under this Indenture of the Indenture Trustee, the Issuer and the Holders of
the Notes shall thereafter be determined, exercised and enforced hereunder
subject in all respects to such modifications and amendments, and all the terms
and conditions of the Series Supplement or any amendment shall be and be deemed
to be part of the terms and conditions of this Indenture for any and all
purposes.

 

SECTION 9.6         Conformity With Trust Indenture Act.  Every amendment of this Indenture and the
Series Supplement 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 9.7         Reference in Notes to the Series
Supplement.  Notes authenticated and
delivered after the execution of the Series Supplement pursuant to this Article
IX may, and if required by the Issuer shall, bear a notation as to any matter
provided for in the Series Supplement. 
If the Issuer shall so determine, new Notes so modified as to conform,
in the opinion of the Issuer, to the Series Supplement may be prepared and
executed by the Issuer and authenticated and delivered by the Administrator in
exchange for Outstanding Notes.

 

52

 

ARTICLE X.
 

[Reserved]

 

ARTICLE XI.

Miscellaneous

 

SECTION 11.1       Compliance Certificates and Opinions,
etc.

 

(a)           Upon
any application or request by the Issuer to the Indenture Trustee or the
Administrator, as the case may be, to take any action under any provision of
this Indenture or the Series Supplement, the Issuer shall furnish to the
Indenture Trustee or the Administrator, as the case may be, (i) an Officer’s
Certificate stating that all conditions precedent, if any, provided for in this
Indenture or the Series Supplement relating to the proposed action have been
complied with, (ii) an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent, if any, have been complied with and
(iii) (if required by the TIA) an Independent Certificate from a firm of certified
public accountants meeting the applicable requirements of this Section, 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
or the Series Supplement, 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 or the Series Supplement
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;

 

(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 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 and the Series
Supplement, the Issuer shall, in addition to any obligation imposed in Section
11.1(a) or elsewhere in this Indenture or the Series Supplement, furnish to the
Indenture Trustee an Officer’s Certificate certifying or stating the opinion of
each person signing such

 

53

 

certificate as to
the fair value (within 90 days of such deposit) to the Issuer of the property
or securities to be so deposited.

 

(ii)                   Whenever
the Issuer is required to furnish to the Indenture Trustee an Officer’s
Certificate certifying or stating the opinion of any signer thereof as to the
matters described in clause (i) above, the Issuer shall also deliver to the
Indenture Trustee an Independent Certificate as to the same matters, if the
fair value 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 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 Notes; provided, that such
a certificate need not be furnished with respect to any securities so
deposited, if the fair value thereof to the Issuer as set forth in the related
Officer’s Certificate is less than $25,000 or less than 1% percent of the
Outstanding Amount of the Notes.

 

(iii)                  Other than
with respect to the release of any Repurchased Receivables or Liquidated
Receivables (as such terms are defined in the Master Sale and Servicing
Agreement), whenever any property or securities are to be released from the
lien of this Indenture and the Series Supplement, 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 and the Series Supplement in contravention of
the provisions hereof.

 

(iv)                  Whenever the
Issuer is required to furnish to the Indenture Trustee an Officer’s Certificate
certifying or stating the opinion of any signer thereof as to the matters
described in clause (i) 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 Repurchased
Receivables and Defaulted Receivables (as such terms are defined in the Master
Sale and Servicing Agreement), or securities released from the lien of this
Indenture since the commencement of then current calendar year, as set forth in
the certificates required by clause (ii) above and this clause (iv), equals 10%
or more of the Outstanding Amount of the Notes; provided, that such
certificate need not be furnished in the case of any release of property or
securities if the fair value thereof as set forth in the related Officer’s
Certificate is less than $25,000 or less than 1 percent of then Outstanding
Amount of the Notes.

 

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

 

54

 

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

 

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

 

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

 

Whenever in this Indenture or the Series Supplement, 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 conclusively
rely upon the truth and accuracy of any statement or opinion contained in any
such document as provided in Article VI.

 

SECTION 11.3       Acts of Noteholders.

 

(a)           Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Indenture to be given or taken by Noteholders may be
embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Noteholders in person or by agents duly appointed in
writing; and except as herein otherwise expressly provided such action shall
become effective when such instrument or instruments are delivered to the
Indenture Trustee, and, where it is hereby expressly required, to the
Issuer.  Such instrument or instruments
(and the action embodied therein and evidenced thereby) are herein sometimes
referred to as the “Act” of

 

55

 

the Noteholders signing such instrument or instruments.  Proof of execution of any such instrument or
of a writing appointing any such agent shall be sufficient for any purpose of
this Indenture and (subject to Section 6.1) conclusive in favor of the
Indenture Trustee, the Administrator and the Issuer, if made in the manner
provided in this Section.

 

(b)           The
fact and date of the execution by any person of any such instrument or writing
may be proved in any customary manner of the Indenture Trustee.

 

(c)           The
ownership of Notes shall be proved by the Note Register.

 

(d)           Any
request, demand, authorization, direction, notice, consent, waiver or other
action by the Holder of any Notes shall bind the Holder of every Note issued
upon the registration thereof or in exchange therefor or in lieu thereof, in
respect of anything done, omitted or suffered to be done by the Indenture
Trustee or the Issuer in reliance thereon, whether or not notation of such
action is made upon such Note.

 

SECTION 11.4       Notices, etc., to Indenture Trustee,
Issuer and Rating Agencies.  Any
request, demand, authorization, direction, notice, consent, waiver or Act of
Noteholders or other documents provided or permitted by this Indenture or the
Series Supplement to be made upon, given or furnished to or filed with:

 

(a)           The
Indenture Trustee by any Noteholder, the Issuer or the Administrator shall be
sufficient for every purpose hereunder if personally delivered, delivered by
overnight courier or mailed first-class and shall be deemed to have been duly
given upon receipt to the Indenture Trustee at its Corporate Trust Office,

 

(b)           The
Administrator by any Noteholder, the Issuer or the Indenture Trustee shall be
sufficient for every purpose hereunder if personally delivered, delivered by
overnight courier or mailed first-class and shall be deemed to have been duly
given upon receipt to the Administrator at its Corporate Trust Office,

 

(c)           The
Issuer by the Indenture Trustee or by any Noteholder shall be sufficient for
every purpose hereunder if personally delivered, delivered by facsimile or
overnight courier or mailed first class, and shall be deemed to have been duly
given upon receipt to the Issuer addressed to: 
HSBC Automotive Trust 2005-1, in care of the Owner Trustee at its
Corporate Trust Office, or at any other address previously furnished in writing
to the Indenture Trustee by the Issuer.  Each
of the Issuer and the Administrator shall promptly transmit any notice received
by it from the Noteholders to the Indenture Trustee.

 

Notices required to be given to the Rating Agencies by the Issuer, the
Indenture Trustee, the Administrator or the Owner Trustee shall be in writing,
personally delivered, delivered by overnight courier or first class or via
facsimile to (i) in the case of Moody’s, at the following address: Moody’s
Investors Service, Inc., 99 Church Street, New York, New York 10004, Fax
No:  (212) 553-0355, (ii) in the case of
S&P, at the following address: Standard & Poor’s Ratings Group, 55
Water Street, New York, New York 10041, Attention: Asset Backed Surveillance
Department, Fax No:  (212) 438-2649 and
(iii) in the case of Fitch, Inc., at the following address: One State Street
Plaza, New York,

 

56

 

New York 10004, Fax No. (212) 480-4438; or as to each
of the foregoing, at such other address as shall be designated by written
notice to the other parties.

 

SECTION 11.5       Notices to Noteholders; Waiver.  Where this Indenture or the Series Supplement
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class, postage prepaid to each Noteholder affected by such
event, at his address as it appears on the Note Register, not later than the
latest date, and not earlier than the earliest date, prescribed for the giving
of such notice.  In any case where notice
to Noteholders is given by mail, neither the failure to mail such notice nor
any defect in any notice so mailed to any particular Noteholder shall affect
the sufficiency of such notice with respect to other Noteholders, and any
notice that is mailed in the manner herein provided shall conclusively be
presumed to have been duly given.

 

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

 

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

 

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

 

SECTION 11.6       Alternate Payment and Notice
Provisions.  Notwithstanding any
provision of this Indenture, the Series Supplement or any of the Notes to the
contrary, the Issuer may enter into any agreement with any Holder of a Note
providing for a method of payment, or notice by the Indenture Trustee or any
Note Paying Agent to such Holder, that is different from the methods provided
for in this Indenture or the Series Supplement for such payments or notices,
provided that such methods are reasonable and consented to by the Indenture
Trustee and the Note Paying Agent (which consent, in each case, shall not be
unreasonably withheld).  The Issuer will
furnish to the Indenture Trustee and the Note Paying Agent a copy of each such
agreement and the Indenture Trustee and the Note Paying Agent, as the case may
be, will cause payments to be made and notices to be given in accordance with
such agreements.  Any additional costs
and expenses incurred by the Indenture Trustee or the Note Paying Agent, as the
case may be, pursuant to this Section shall be a cost and expense of the
Indenture Trustee or the Administrator, respectively, pursuant to Section
3.03(a)(ii) of the Series Supplement.

 

57

 

SECTION 11.7       Conflict with TIA.  If this Indenture is qualified under the TIA
and if any provision hereof limits, qualifies or conflicts with a provision of the
TIA that is required or deemed under the TIA to be a part of and govern this Indenture,
such required or deemed provision shall control.  If any provision of this Indenture modifies
or excludes any provision of the TIA that may be so modified or excluded, the
latter provisions shall be deemed to apply to this Indenture as so modified or
to be excluded, as the case may be.

 

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

 

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

 

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

 

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

 

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

 

SECTION 11.12     Legal Holidays.  In any case where the date on which any
payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes, this Indenture or the Series Supplement) 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 an which nominally due,
and no interest shall accrue for the period from and after any such nominal
date.

 

SECTION 11.13     GOVERNING LAW.  THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAWS PROVISIONS

 

58

 

WHICH WOULD REQUIRE THE
APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION, 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 or the Series Supplement 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 Trust or any other counsel
reasonably acceptable to the Indenture Trustee) to the effect that such
recording is necessary either for the protection of the Noteholders or any
other person secured hereunder or for the enforcement of any right or remedy
granted to the Indenture Trustee under this Indenture or the Series Supplement.

 

SECTION 11.16     Trust Obligation.  No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Seller, the
Master Servicer, the Owner Trustee, the Administrator or the Indenture Trustee
on the Notes or under this Indenture or the Series Supplement or any
certificate or other writing delivered in connection herewith or therewith,
against (i) the Seller, the Master Servicer, the Indenture Trustee, the
Administrator or the Owner Trustee in its individual capacity, (ii) any owner
of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director, employee or agent of the Seller, the
Master Servicer, the Indenture Trustee, the Administrator or the Owner Trustee
in its individual capacity, any holder of a beneficial interest in the Issuer,
the Seller, the Master Servicer, the Indenture Trustee, the Administrator or
the Owner Trustee or of any successor or assign of the Seller, the Master
Servicer, the Indenture Trustee, the Administrator or the Owner Trustee in its
individual capacity, except as any such Person may have expressly agreed (it
being understood that the Indenture Trustee, the Administrator and the Owner
Trustee have no such obligations in their individual capacity) and except that
any such 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 Articles VI, VII, and
VIII of the Trust Agreement.

 

SECTION 11.17     No Petition.  The Indenture Trustee and the Administrator,
by entering into this Indenture, and each Noteholder, by accepting a Note,
hereby covenant and agree that they will not at any time institute against the
Seller, or the Issuer, or join in, cooperate with or encourage others in
connection with the institution against the Seller, or the Issuer of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings under any United States federal or state bankruptcy or
similar law in connection with any obligations relating to

 

59

 

the Notes, this Indenture
or any of the Basic Documents or any of the Related Documents.

 

SECTION 11.18     Limited
Recourse.

 

(a)           Notwithstanding
anything in the Related Documents to the contrary, the Notes constitute limited
recourse obligations of the Issuer and are limited in recourse to the Series
Trust Estate.  The Indenture Trustee, by
entering into this Indenture and the Series Supplement, and each Noteholder
agree that recourse for the Notes is limited to the Series Trust Estate and, if
the Series Trust Estate shall prove to be insufficient to pay amounts due under
the Notes, the Noteholders shall have no claim against the assets of the Issuer
or the Seller other than the Series Trust Estate.

 

(b)           If,
notwithstanding paragraph (a) above, the Noteholders are deemed to have any
interest in any asset of the Seller other than the Seller’s interest in the
Series Trust Estate, including any interest in assets of the Seller pledged to
secure debt obligations of the Seller other than the Notes, the Indenture
Trustee, by entering into this Indenture and the Series Supplement, and each
Noteholder agree that any such interest is subordinate to the claims of the
holders of any such debt obligations, and the Noteholders shall have no rights
in such assets until such other debt obligations are indefeasibly paid in
full.  The agreement of the Indenture
Trustee and the Noteholders pursuant to this Section 11.18(b) is intended to
constitute a subordination agreement for the purposes of Section 510(a) of the
Bankruptcy Code.

 

SECTION 11.19     Inspection.  The Issuer agrees that, on reasonable prior
notice, it will 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.

 

SECTION 11.20     Limitation of Liability.  It is expressly understood and agreed by the
parties hereto that (a) this Indenture is executed and delivered by the Owner
Trustee, not individually or personally but solely as Owner Trustee of the Issuer
under the Trust Agreement, in the exercise of the powers and authority
conferred and vested in it, (b) each of the representations, undertakings and
agreements herein made on the part of the Issuer is made and intended not as
personal representations, undertakings and agreements by the Owner Trustee but
is made and intended for the purpose of binding only the Issuer, (c) nothing
herein contained shall be construed as creating any liability on the Owner
Trustee individually or personally, to perform any covenant either expressed or
implied contained herein, all such liability, if any, being expressly waived

 

60

 

by the parties to this
Indenture and by any person claiming by, through or under them and (d) under no
circumstances shall the Owner Trustee be personally liable for the payment of
any indebtedness or expenses of the Issuer or be liable for the breach or
failure of any obligation, representation, warranty or covenant made or
undertaking by the Issuer under this Indenture or any related documents.

 

[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, hereunto duly
authorized, all as of the day and year first above written.

 

	
   

  	
  HSBC AUTOMOTIVE TRUST 2005-1

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  U.S. BANK TRUST NATIONAL

  ASSOCIATION,

  
	
   

  	
   

  	
  not in its individual capacity but solely as

  Owner Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Patricia M. Child

  	
   

  
	
   

  	
   

  	
  Name: Patricia M. Child

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, NATIONAL

  ASSOCIATION, not in its individual capacity but

  solely as Indenture Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Cory Branden

  	
   

  
	
   

  	
   

  	
  Name: Cory Branden

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  HSBC BANK USA, NATIONAL
  ASSOCIATION,

  
	
   

  	
  as Administrator

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Susie Moy

  	
   

  
	
   

  	
   

  	
  Name: Susie Moy

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  	
   

  
					

 

 

Exhibit A

 

FORM OF TRANSFEREE
CERTIFICATE

 

Pursuant to Section 2.4 of the Indenture dated as of June 22, 2005 between
HSBC Automotive Trust 2005-1, Wells Fargo Bank, National Association, a
national banking association, and HSBC Bank USA, National Association, a
national banking association,                             
(the “Transferee”) hereby certifies on the date hereof that either (check
appropriate certification):

 

(i) the Transferee is not (A) an employee benefit plan
(within the meaning of Section 3(3) of the Employee Retirement Income Security
Act of 1974, as amended (“ERISA”)) that is subject to Title I of ERISA or (B) a
plan (within the meaning of Section 4975(e)(1) of the Internal Revenue Code of
1986, as amended (the “Code”)) that is subject to Section 4975 of the Code
(each of the foregoing, a “Plan”), and is not acting on behalf of or investing
the assets of a Plan; or

 

(ii) that the Transferee’s acquisition and continued
holding of the Definitive Note will be covered by a prohibited transaction
class exemption issued by the U.S. Department of Labor.

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [Name of Transferee]Exhibit
4.2

 

EXECUTION
COPY

 

 

AMENDED AND
RESTATED

 

TRUST AGREEMENT

 

 

between

 

 

HSBC AUTO
RECEIVABLES CORPORATION

 

 

and

 

U.S. BANK TRUST NATIONAL
ASSOCIATION

Owner Trustee

 

 

Dated as of June 22,
2005

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I Definitions

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.1.

  	
   

  	
  Capitalized Terms

  	
   

  	
   

  
	
  Section 1.2.

  	
   

  	
  Other Definitional Provisions

  	
   

  	
   

  
	
  Section 1.3.

  	
   

  	
  Action by or Consent of Noteholders
  and Certificateholders

  	
   

  	
   

  
	
  Section 1.4.

  	
   

  	
  Material Adverse Effect

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II Organization

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.1.

  	
   

  	
  Name

  	
   

  	
   

  
	
  Section 2.2.

  	
   

  	
  Office

  	
   

  	
   

  
	
  Section 2.3.

  	
   

  	
  Purposes and Powers

  	
   

  	
   

  
	
  Section 2.4.

  	
   

  	
  Appointment of Owner Trustee

  	
   

  	
   

  
	
  Section 2.5.

  	
   

  	
  Initial Capital Contribution of Owner
  Trust Estate

  	
   

  	
   

  
	
  Section 2.6.

  	
   

  	
  Declaration of Trust

  	
   

  	
   

  
	
  Section 2.7.

  	
   

  	
  Liability

  	
   

  	
   

  
	
  Section 2.8.

  	
   

  	
  Title to Owner Trust Estate

  	
   

  	
   

  
	
  Section 2.9.

  	
   

  	
  Situs of Owner Trust Estate

  	
   

  	
   

  
	
  Section 2.10.

  	
   

  	
  Representations and Warranties of
  the Depositor

  	
   

  	
   

  
	
  Section 2.11.

  	
   

  	
  Federal Income Tax Allocations

  	
   

  	
   

  
	
  Section 2.12.

  	
   

  	
  Covenants of the Depositor

  	
   

  	
   

  
	
  Section 2.13.

  	
   

  	
  Covenants of the Certificateholders

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III Certificates and Transfer
  of Interests

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.1.

  	
   

  	
  Initial Ownership

  	
   

  	
   

  
	
  Section 3.2.

  	
   

  	
  The Certificates

  	
   

  	
   

  
	
  Section 3.3.

  	
   

  	
  Authentication of Certificates

  	
   

  	
   

  
	
  Section 3.4.

  	
   

  	
  Registration of Transfer and Exchange
  of Certificates

  	
   

  	
   

  
	
  Section 3.5.

  	
   

  	
  Mutilated, Destroyed, Lost or Stolen
  Certificates

  	
   

  	
   

  
	
  Section 3.6.

  	
   

  	
  Persons Deemed Certificateholders

  	
   

  	
   

  
	
  Section 3.7.

  	
   

  	
  Access to List of Certificateholders’
  Names and Addresses

  	
   

  	
   

  
	
  Section 3.8.

  	
   

  	
  Maintenance of Office or Agency

  	
   

  	
   

  
	
  Section 3.9.

  	
   

  	
  ERISA Restrictions

  	
   

  	
   

  
	
  Section 3.10.

  	
   

  	
  Securities Matters

  	
   

  	
   

  
	
  Section 3.11.

  	
   

  	
  Distributions

  	
   

  	
   

  
	
  Section 3.12.

  	
   

  	
  Certificate Paying Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV Voting Rights and Other
  Actions

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.1.

  	
   

  	
  Prior Notice to Holders with Respect
  to Certain Matters

  	
   

  	
   

  
	
  Section 4.2.

  	
   

  	
  Action by Certificateholders with
  Respect to Certain Matters

  	
   

  	
   

  
	
  Section 4.3.

  	
   

  	
  Action by Certificateholders with
  Respect to Bankruptcy

  	
   

  	
   

  
	
  Section 4.4.

  	
   

  	
  Restrictions on Certificateholders’
  Power

  	
   

  	
   

  
	
  Section 4.5.

  	
   

  	
  Majority Control

  	
   

  	
   

  

 

 

	
  ARTICLE V Certain Duties

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.1.

  	
   

  	
  Accounting and Records to the
  Noteholders, Certificateholders, the Internal Revenue Service and Others

  	
   

  	
   

  
	
  Section 5.2.

  	
   

  	
  Signature on Returns; Tax Matters
  Partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI Authority and Duties of
  Owner Trustee

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.1.

  	
   

  	
  General Authority

  	
   

  	
   

  
	
  Section 6.2.

  	
   

  	
  General Duties

  	
   

  	
   

  
	
  Section 6.3.

  	
   

  	
  Action upon Instruction

  	
   

  	
   

  
	
  Section 6.4.

  	
   

  	
  No Duties Except as Specified in this
  Agreement or in Instructions

  	
   

  	
   

  
	
  Section 6.5.

  	
   

  	
  No Action Except under Specified
  Documents or Instructions

  	
   

  	
   

  
	
  Section 6.6.

  	
   

  	
  Restrictions

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII Concerning the Owner
  Trustee

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.1.

  	
   

  	
  Acceptance of Trust and Duties

  	
   

  	
   

  
	
  Section 7.2.

  	
   

  	
  Furnishing of Documents

  	
   

  	
   

  
	
  Section 7.3.

  	
   

  	
  Representations and Warranties

  	
   

  	
   

  
	
  Section 7.4.

  	
   

  	
  Reliance; Advice of Counsel

  	
   

  	
   

  
	
  Section 7.5.

  	
   

  	
  Not Acting in Individual Capacity

  	
   

  	
   

  
	
  Section 7.6.

  	
   

  	
  Owner Trustee Not Liable for
  Certificates or Receivables

  	
   

  	
   

  
	
  Section 7.7.

  	
   

  	
  Owner Trustee May Own Certificates
  and Notes

  	
   

  	
   

  
	
  Section 7.8.

  	
   

  	
  Payments from Owner Trust Estate

  	
   

  	
   

  
	
  Section 7.9.

  	
   

  	
  Doing Business in Other Jurisdictions

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII Compensation of Owner
  Trustee

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 8.1.

  	
   

  	
  Owner Trustee’s Fees and Expenses

  	
   

  	
   

  
	
  Section 8.2.

  	
   

  	
  Indemnification

  	
   

  	
   

  
	
  Section 8.3.

  	
   

  	
  Payments to the Owner Trustee

  	
   

  	
   

  
	
  Section 8.4.

  	
   

  	
  Non-recourse Obligations

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX Termination of Agreement

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 9.1.

  	
   

  	
  Termination of Agreement

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X Successor Owner Trustees and
  Additional Owner Trustees

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 10.1.

  	
   

  	
  Eligibility Requirements for Owner Trustee

  	
   

  	
   

  
	
  Section 10.2.

  	
   

  	
  Resignation or Removal of Owner
  Trustee

  	
   

  	
   

  
	
  Section 10.3.

  	
   

  	
  Successor Owner Trustee

  	
   

  	
   

  
	
  Section 10.4.

  	
   

  	
  Merger or Consolidation of Owner
  Trustee

  	
   

  	
   

  
	
  Section 10.5.

  	
   

  	
  Appointment of Co-Trustee or Separate
  Trustee

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI Miscellaneous

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 11.1.

  	
   

  	
  Supplements and Amendments

  	
   

  	
   

  
	
  Section 11.2.

  	
   

  	
  No Legal Title to Owner Trust Estate
  in Certificateholders

  	
   

  	
   

  

 

ii

 

	
  Section 11.3.

  	
   

  	
  Limitations on Rights of Others

  	
   

  	
   

  
	
  Section 11.4.

  	
   

  	
  Notices

  	
   

  	
   

  
	
  Section 11.5.

  	
   

  	
  Severability

  	
   

  	
   

  
	
  Section 11.6.

  	
   

  	
  Separate Counterparts

  	
   

  	
   

  
	
  Section 11.7.

  	
   

  	
  Assignments; Support Provider

  	
   

  	
   

  
	
  Section 11.8.

  	
   

  	
  Covenants of the Depositor

  	
   

  	
   

  
	
  Section 11.9.

  	
   

  	
  No Petition

  	
   

  	
   

  
	
  Section 11.10.

  	
   

  	
  No Recourse

  	
   

  	
   

  
	
  Section 11.11.

  	
   

  	
  Headings

  	
   

  	
   

  
	
  Section 11.12.

  	
   

  	
  GOVERNING LAW

  	
   

  	
   

  
	
  Section 11.13.

  	
   

  	
  Master Servicer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit
  A

  	
   

  	
  Form
  of Certificate

  	
   

  	
   

  
	
  Exhibit
  B

  	
   

  	
  Form
  of Certificate of Trust

  	
   

  	
   

  

 

iii

 

THIS AMENDED AND RESTATED TRUST AGREEMENT, dated as of
June 22, 2005, between HSBC AUTO RECEIVABLES CORPORATION, a Nevada
corporation (the “Depositor”) and U.S. BANK TRUST NATIONAL ASSOCIATION, a
national banking association, as Owner Trustee (the “Owner Trustee”), amends
and restates in its entirety that certain Trust Agreement, dated as of
June 13, 2005, between the Depositor and the Owner Trustee.

 

ARTICLE I

Definitions

 

Section 1.1.            Capitalized Terms.  For all purposes of this Agreement, the
following terms shall have the meanings set forth below:

 

“Administrator” shall mean HSBC Bank USA, National
Association, or its successors, not in its individual capacity but solely as
administrator under the Transaction Documents to which it is a party, and any
successor administrator thereunder. 

 

“Agreement” shall mean this Amended and Restated Trust
Agreement, as the same may be amended and supplemented from time to time.

 

“Benefit Plan” shall have the meaning assigned to such
term in Section 3.9.

 

“Certificates” means, if the Depositor elects
(i) to evidence its interest in certificated form pursuant to
Section 3.2, the certificate substantially in the form of Exhibit A
or (ii) to have its interest be uncertificated pursuant to
Section 3.2, such uncertificated interest.

 

“Certificate Majority” shall have the meaning assigned
to such term in Section 4.1.

 

“Certificate Paying Agent” means the Administrator.

 

“Certificate Register” and “Certificate Registrar”
shall mean the register mentioned and the registrar appointed pursuant to
Section 3.4.

 

“Certificate of Trust” shall mean the Certificate of
Trust in the form of Exhibit B to be filed for the Trust pursuant to
§ 3810(a) of the Statutory Trust Statute.

 

“Code” shall mean the Internal Revenue Code of 1986,
as amended.

 

“Corporate Trust Office” shall mean, with respect to
the Owner Trustee, the office of the Owner Trustee located at 209 South LaSalle
Street, Suite 300, Chicago, Illinois 60604, Attention: Corporate Trust
Services, or at such other address as the Owner Trustee may designate by notice
to the Certificateholders and the Depositor, or the principal corporate trust
office of any successor Owner Trustee (the address of which the successor owner
trustee will notify the Certificateholders and the Depositor).

 

 

“Depositor” shall mean HSBC Auto Receivables
Corporation in its capacity as Depositor hereunder.

 

“ERISA” shall have the meaning assigned to such term
in Section 3.9.

 

“Expenses” shall have the meaning assigned to such
term in Section 8.2.

 

“Holder” or “Certificateholder” shall mean a Person in
whose name a Certificate is registered on the Certificate Register.

 

“HSBC Finance” shall mean HSBC Finance Corporation.

 

“Indemnified Parties” shall have the meaning assigned
to such term in Section 8.2.

 

“Owner Trust Estate” shall mean all right, title and
interest of the Trust in and to the property and rights assigned to the Trust
pursuant to Article II of the Master Sale and Servicing Agreement, all
funds on deposit from time to time in the Trust Accounts and all other property
of the Trust from time to time, including any rights of the Owner Trustee and
the Trust pursuant to the Master Sale and Servicing Agreement and each Related
Document.

 

“Owner Trustee” shall mean U.S. Bank Trust National
Association, a national banking association, not in its individual capacity but
solely as Owner Trustee under this Agreement, and any successor Owner Trustee
hereunder.

 

“Percentage Interest” shall mean, with respect to a
Certificate, the portion of the interests in the Trust represented by a
Certificate, as reflected in the Certificate Register.

 

“Secretary of State” shall mean the Secretary of State
of the State of Delaware.

 

“Securities Act” shall have the meaning assigned to
such term in Section 3.4.

 

“Series Trust Estate” shall mean the property
granted to the Indenture Trustee on behalf of the Trust pursuant to
Section 1.02 of the Series Supplement.

 

“Statutory Trust Statute” shall mean Chapter 38 of
Title 12 of the Delaware Code, 12 Del. Code § 3801 et seq. as the
same may be amended from time to time.

 

“Treasury Regulations” shall mean regulations,
including proposed or temporary regulations, promulgated under the Code.  References herein to specific provisions of
proposed or temporary regulations shall include analogous provisions of final
Treasury Regulations or other successor Treasury Regulations.

 

2

 

“Trust” shall mean the trust established by this
Agreement.

 

Section 1.2.            Other Definitional Provisions.  (a)  Capitalized terms used herein
and not otherwise defined have the meanings assigned to them in the Master Sale
and Servicing Agreement or, if not defined therein, in the Indenture; provided
that, as used herein, Series means only the Series of Notes
and Series of Certificates with respect to which the Trust is the Issuer
and only such Series Trust Estates included in the Owner Trust Estate.

 

(b)           All
terms defined in this Agreement shall have the defined meanings when used in
any Certificate or other document made or delivered pursuant hereto unless
otherwise defined therein.

 

(c)           As
used in this Agreement and in any Certificate or other document made or
delivered pursuant hereto or thereto, accounting terms not defined in this
Agreement or in any such certificate or other document, and accounting terms
partly defined in this Agreement or in any such certificate or other document
to the extent not defined, shall have the respective meanings given to them
under generally accepted accounting principles as in effect on the date of this
Agreement or any such certificate or other document, as applicable.  To the extent that the definitions of
accounting terms in this Agreement or in any such certificate or other document
are inconsistent with the meanings of such terms under generally accepted
accounting principles, the definitions contained in this Agreement or in any
such certificate or other document shall control.

 

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

 

(e)           The
definitions contained in this Agreement are applicable to the singular as well
as the plural forms of such terms and to the masculine as well as to the
feminine and neuter genders of such terms.

 

Section 1.3.            Action by or Consent of
Noteholders and Certificateholders. 
Whenever any provision of this Agreement refers to action to be taken,
or consented to, by Noteholders or Certificateholders, such provision shall be
deemed to refer to the Certificateholder or Noteholder, as the case may be, of
record as of the Record Date immediately preceding the date on which such
action is to be taken, or consent given, by Noteholders or
Certificateholders.  Solely for the
purposes of any action to be taken, or consented to, by Noteholders, any Note
registered in the name of the Depositor or any Affiliate thereof shall be
deemed not to be outstanding; provided, however, that, solely for
the purpose of determining whether the Indenture Trustee is entitled to rely
upon any such action or consent, only Notes which the Owner Trustee or the
Indenture Trustee knows to be so owned shall be so disregarded.

 

3

 

Section 1.4.            Material Adverse Effect.  Whenever a determination is to be made under
this Agreement as to whether a given event, action, course of conduct or set of
facts or circumstances could or would have a material adverse effect on the
Noteholders or Certificateholders (or any similar or analogous determination),
such determination shall be made without taking into account the funds
available from claims under any policy or other Series Support.

 

ARTICLE II

 

Organization

 

Section 2.1.            Name.  There is hereby formed a trust to be known as
“HSBC Automotive Trust 2005-1”, in which name the Owner Trustee may conduct the
business of the Trust, make and execute contracts and other instruments on
behalf of the Trust and sue and be sued.

 

Section 2.2.            Office.  The principal place of business of the Trust
for purposes of Delaware law shall be in care of the Owner Trustee at the
Corporate Trust Office of the Owner Trustee or at such other address as the
Owner Trustee may designate by written notice to the Certificateholders and the
Depositor.  The Trust may establish
additional offices located at such place or places inside or outside the State
of Delaware as the Owner Trustee may designate from time to time by written
notice to the Certificateholders and the Depositor.  Initially, the Trust shall establish one such
additional office at the Corporate Trust Office of the Owner Trustee.

 

Section 2.3.            Purposes and Powers.  (a)  The purpose of the Trust is,
and the Trust shall have the power and authority, to engage in the following
activities:

 

(i)            to
issue the Notes pursuant to the Indenture and the Series Supplement and
the Certificates pursuant to this Agreement and the Series Supplement, and
to sell the Notes;

 

(ii)           with
the proceeds of the sale of the Notes, to fund the expense of obtaining any
Series Support and to pay the organizational, start-up and transactional
expenses of the Trust and to pay the balance to the Depositor pursuant to the
Master Sale and Servicing Agreement;

 

(iii)          with
respect to the Series Trust Estate, to assign, grant, transfer, pledge,
mortgage and convey the Series Trust Estate to the Indenture Trustee
pursuant to the Indenture and the Series Supplement for the benefit of the
Secured Parties;

 

(iv)          to
enter into and perform its obligations under the Basic Documents and the
Related Documents, in each case, to which it is a party;

 

(v)           to
acquire, hold and manage the Owner Trust Estate;

 

4

 

(vi)          to
make distributions on the Certificates in accordance with their respective
terms;

 

(vii)         to
own Class SV Preferred Stock of the Depositor;

 

(viii)        to
engage in those activities, including entering into agreements, that are
necessary, suitable or convenient to accomplish the foregoing or are incidental
thereto or connected therewith; and

 

(ix)           subject
to compliance with the Basic Documents and the Related Documents, to engage in
such other activities as may be required in connection with conservation of the
Owner Trust Estate and the making of distributions to the Certificateholders
and the Noteholders.

 

(b)           The
Trust is hereby authorized to engage in the foregoing activities.  The Trust shall not engage in any activity
other than in connection with the foregoing or other than as required or
authorized by the terms of this Agreement, the Basic Documents or any Related
Documents.

 

Section 2.4.            Appointment of Owner Trustee.  The Depositor hereby appoints the Owner
Trustee as trustee of the Trust effective as of the date hereof, to have all
the respective rights, powers and duties set forth herein.

 

Section 2.5.            Initial Capital Contribution of
Owner Trust Estate.  The Depositor
hereby sells, assigns, transfers, conveys and sets over to the Owner Trustee,
on behalf of the Trust, as of the date hereof, the sum of $1,000 and one share
of Class SV Preferred Stock of the Depositor.  The Owner Trustee hereby acknowledges receipt
in trust from the Depositor, as of the date hereof, of the foregoing
contribution, which shall constitute the initial Owner Trust Estate.  The Depositor shall pay organizational expenses
of the Trust as they may arise.

 

Section 2.6.            Declaration of Trust.  The Owner Trustee hereby declares that it
will hold the Owner Trust Estate in trust upon and subject to the conditions
set forth herein, on behalf of the Trust, for the use and benefit of the
Certificateholders, subject to the obligations of the Trust under the Basic
Documents.  It is the intention of the
parties hereto that the Trust constitute a statutory trust under the Statutory
Trust Statute and that this Agreement constitute the governing instrument of
such statutory trust.  It is the
intention of the parties hereto that, solely for federal income tax purposes,
the Trust shall be disregarded as an entity separate from the
Certificateholder; provided, however, that in the event
Certificates are owned by more than one Certificateholder, it is the intention
of the parties hereto that, solely for federal income tax purposes, the Trust
shall then be treated as a partnership and that, unless otherwise required by
appropriate tax authorities, only after such time the Trust will file or cause
to be filed annual or other necessary returns, reports and other forms
consistent with the characterization of the Trust as a partnership for such tax
purposes.  Effective as of the date
hereof, the Owner Trustee shall have all rights, powers and duties set forth
herein and to the extent not inconsistent herewith, in the Statutory Trust
Statute with respect to accomplishing the 

 

5

 

purposes of the
Trust.  The Owner Trustee shall file the
Certificate of Trust with the Secretary of State.

 

Section 2.7.            Liability.  (a)  The Depositor shall pay
organizational expenses of the Trust as they may arise or shall, upon the
request of the Owner Trustee, promptly reimburse the Owner Trustee for any such
expenses paid by the Owner Trustee.

 

(b)           No
Holder, other than to the extent set forth in clause (a), shall have any
personal liability for any liability or obligation of the Trust.

 

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

 

(b)           The
holders of the Certificates shall not have legal title to any part of the
Series Trust Estate.  The Holders of
the Certificates shall be entitled to receive distributions with respect to
their undivided ownership interest therein in accordance with the terms hereof
and the Series Supplement.  No
transfer, by operation of law or otherwise, of any right, title or interest by
any Certificateholder of its ownership interest in the Owner Trust Estate shall
operate to terminate this Agreement or the trusts hereunder or entitle any
transferee to an accounting or to the transfer to it of legal title to any part
of the Series Trust Estate.

 

Section 2.9.            Situs of Owner Trust Estate.  The Trust will be located in the State of
Delaware and administered in the State of Delaware and the State of
Illinois.  All bank accounts maintained
by the Owner Trustee on behalf of the Trust shall be located with the Certificate
Paying Agent in the State of New York. 
Payments will be received by the Certificate Paying Agent on behalf of
the Trust in New York and payments will be made by the Trust from New York.  The Trust shall not have any employees in any
state other than Delaware; provided, however, that nothing herein
shall restrict or prohibit the Owner Trustee, the Master Servicer or any agent
of the Trust from having employees within or without the State of
Delaware.  The principal office of the
Trust will be at the Corporate Trust Office.

 

Section 2.10.          Representations and Warranties of
the Depositor.  The Depositor makes
the following representations and warranties on which the Owner Trustee relies
in accepting the Owner Trust Estate in trust and executing the Certificates and
Notes and upon which any Support Provider relies in providing any
Series Support.  Each of the
following representations and warranties shall be deemed to be made on each
date on which a Series Trust Estate is pledged under the Indenture.

 

(a)           Organization
and Good Standing.  The Depositor is
duly organized and validly existing as a Nevada corporation with power and
authority to own its properties and to conduct its business as such properties
are currently owned and such 

 

6

 

business is presently conducted and is proposed to be
conducted pursuant to this Agreement and the Basic Documents.

 

(b)           Due
Qualification.  It is duly qualified
to do business as a foreign corporation in good standing, and has obtained all
necessary licenses and approvals, in all jurisdictions in which the ownership
or lease of its property, the conduct of its business and the performance of
its obligations under this Agreement and the Basic Documents requires such
qualification and in which the failure to so qualify would have a material
adverse effect on the business, properties, assets or condition (financial or
otherwise) of the Depositor.

 

(c)           Power
and Authority.  The Depositor has the
corporate power and authority to execute and deliver this Agreement and to
carry out its terms; the Depositor has full power and authority to sell and
assign the property to be sold and assigned to and deposited with the Trust;
the Depositor has duly authorized such sale, assignment and deposit to the
Trust by all necessary corporate action; and the execution, delivery and
performance of this Agreement has been duly authorized by the Depositor by all
necessary corporate action.

 

(d)           Binding
Obligations.  This Agreement, when
duly executed and delivered, shall constitute legal, valid and binding
obligations of the Depositor enforceable against the Depositor in accordance
with its terms, except as enforceability may be limited by bankruptcy,
insolvency, reorganization or other similar laws affecting the enforcement of
creditors’ rights generally and by equitable limitations on the availability of
specific remedies, regardless of whether such enforceability is considered in a
proceeding in equity or at law.

 

(e)           No
Consent Required.  To the best knowledge
of the Depositor, no consent, license, approval or authorization or
registration or declaration with, any Person or with any governmental
authority, bureau or agency is required in connection with the execution,
delivery or performance of this Agreement and the Related Documents, except for
such as have been obtained, effected or made or as to which a failure to
obtain, effect or make would not have a material adverse effect on the
business, properties, assets or condition (financial or other) of the
Depositor.

 

(f)            No
Violation.  The consummation of the
transactions contemplated by this Agreement and the fulfillment of the terms
hereof do not conflict with, result in any breach of any of the terms and
provisions of, or constitute (with or without notice or lapse of time) a
default under, the articles of incorporation or by-laws of the Depositor, or
any material indenture, agreement or other instrument to which the Depositor is
a party or by which it is bound; nor result in the creation or imposition of
any Lien upon any of its properties pursuant to the terms of any such
indenture, agreement or other instrument (other than pursuant to the Basic
Documents or any applicable Related Documents); nor violate any law or, to the
best of the Depositor’s knowledge, any order, rule or regulation
applicable to the Depositor of any court or of any federal or state regulatory
body, administrative agency or other governmental instrumentality having
jurisdiction over the Depositor or its properties, provided, however,
that the Receivables will not satisfy the 

 

7

 

Eligibility Criteria set forth in Schedule I to
the Series Supplement until the date on which such Receivables are
transferred to the Issuer.

 

(g)           No
Proceedings.  To the best of the
Depositor’s knowledge, there are no proceedings or investigations pending or,
to its knowledge threatened against it before any court, regulatory body,
administrative agency or other tribunal or governmental instrumentality having
jurisdiction over it or its properties (A) asserting the invalidity of
this Agreement or any of the Basic Documents, (B) seeking to prevent the
issuance of the Certificates or the Notes or the consummation of any of the
transactions contemplated by this Agreement or any of the Basic Documents,
(C) seeking any determination or ruling that might materially and
adversely affect its performance of its obligations under, or the validity or
enforceability of, this Agreement or any Related Documents, or (D) seeking
to adversely affect the federal income tax or other federal, state or local tax
attributes of any of the Notes or Certificates.

 

Section 2.11.          Federal Income Tax Allocations.  (a)  For so long as the Trust has a
single owner for federal income tax purposes, it will, pursuant to Treasury
Regulations promulgated under section 7701 of the Code, be disregarded as
an entity separate from the Certificateholder for all federal income tax
purposes.  Accordingly, for federal
income tax purposes, the Certificateholder will be treated as (i) owning
all assets owned by the Trust, (ii) having incurred all liabilities
incurred by the Trust, and (iii) all transactions between the Trust and
the Certificateholder will be disregarded.

 

(b)           Neither
the Owner Trustee nor any Certificateholder will, under any circumstances, and
at any time, make an election on IRS Form 8832 or otherwise, to classify
the Trust as an association taxable as a corporation for federal, state or any
other applicable tax purpose.

 

(c)           In
the event that the Trust has two or more equity owners for federal income tax
purposes, the Trust will be treated as a partnership.  At any such time that the Trust has two or
more equity owners, this Agreement will be amended, in accordance with
Section 11.1 herein, and appropriate provisions will be added so as to
provide for treatment of the Trust as a partnership.

 

Section 2.12.          Covenants of the Depositor.  The Depositor agrees and covenants for the
benefit of the Owner Trustee and the Indenture Trustee for the benefit of the
Secured Parties, during the term of this Agreement, and to the fullest extent
permitted by applicable law, that:

 

(a)           (i) it
shall not create, incur or suffer to exist any indebtedness or (ii) engage
in any business, except (x) as permitted by its articles of incorporation and
the Related Documents and (y) in connection with a securitization transaction
(including warehousing transactions) and the related documents in which the
related indebtedness is issued pursuant to an indenture having a provision
substantially similar to Section 11.18 of the Indenture; provided, however,
that no other Series shall be issued under the Basic Documents so long as
the Notes are outstanding;

 

8

 

(b)           it
shall not, for any reason, institute proceedings for the Trust to be
adjudicated bankrupt or insolvent, or consent to the institution of bankruptcy
or insolvency proceedings against the Trust, or file a petition seeking or
consenting to reorganization or relief under any applicable federal or state
law relating to the bankruptcy of the Trust, or consent to the appointment of a
receiver, liquidator, assignee, trustee, sequestrator (or other similar
official) of the Trust or a substantial part of the property of the Trust or
cause or permit the Trust to make any assignment for the benefit of creditors,
or admit in writing the inability of the Trust to pay its debts generally as
they become due, or declare or effect a moratorium on the debt of the Trust or
take any action in furtherance of any such action;

 

(c)           it
shall obtain from each counterparty to each Basic Document to which it or the
Trust is a party and each other agreement entered into on or after the date
hereof to which it or the Trust is a party, an agreement by each such
counterparty that prior to the occurrence of the event specified in
Section 9.1(e) such counterparty shall not institute against, or join
any other Person in instituting against, it or the Trust, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings or other
similar proceedings under the laws of the United States or any state of the
United States; and

 

(d)           it
shall not, for any reason, withdraw or attempt to withdraw from this Agreement,
dissolve, institute proceedings for it to be adjudicated a bankrupt or
insolvent, or consent to the institution of bankruptcy or insolvency
proceedings against it, or file a petition seeking or consenting to
reorganization or relief under any applicable federal or state law relating to
bankruptcy, or consent to the appointment of a receiver, liquidator, assignee,
trustee, sequestrator (or other similar official) of it or a substantial part
of its property, or make any assignment for the benefit of creditors, or admit
in writing its inability to pay its debts generally as they become due, or
declare or effect a moratorium on its debt or take any action in furtherance of
any such action.

 

Section 2.13.          Covenants of the Certificateholders.  Each Certificateholder agrees:

 

(a)           to
be bound by the terms and conditions of the related Certificates, of this
Agreement and, with respect to the holders of Certificates, of the
Series Supplement, including any supplements or amendments hereto and to
perform the obligations of a Certificateholder as set forth therein or herein,
in all respects as if it were a signatory hereto.  This undertaking is made for the benefit of
the Trust, the Owner Trustee and the Secured Parties;

 

(b)           to
hereby appoint the Depositor as such Certificateholder’s agent and attorney-in-fact
to sign any federal income tax information return filed on behalf of the Trust,
if any, and agree that, if requested by the Trust, it will sign such federal
income tax information return in its capacity as holder of an interest in the
Trust.  Each Certificateholder also
hereby agrees that in its tax returns it will not take any position
inconsistent with those taken in any tax returns that may be filed by the
Trust;

 

9

 

(c)           if
such Certificateholder is other than an individual or other entity holding its
Certificate through a broker who reports securities sales on Form 1099-B,
to notify the Owner Trustee of any transfer by it of a Certificate in a taxable
sale or exchange, within 30 days of the date of the transfer;

 

(d)           until
the completion of the events specified in Section 9.1(e), not to, for any
reason, institute proceedings for the Trust or the Depositor to be adjudicated
a bankrupt or insolvent, or consent to the institution of bankruptcy or insolvency
proceedings against the Trust, or file a petition seeking or consenting to
reorganization or relief under any applicable federal or state law relating to
bankruptcy, or consent to the appointment of a receiver, liquidator, assignee,
trustee, sequestrator (or other similar official) of the Trust or a substantial
part of its property, or cause or permit the Trust to make any assignment for
the benefit of its creditors, or admit in writing its inability to pay its
debts generally as they become due, or declare or effect a moratorium on its
debt or take any action in furtherance of any such action; and

 

(e)           that
there shall not be more than 98 other holders of Certificates.

 

ARTICLE III

Certificates and Transfer
of Interests

 

Section 3.1.            Initial Ownership.  Upon the formation of the Trust by the
contribution by the Depositor pursuant to Section 2.5, the Trust shall
issue an uncertificated ownership interest in the Trust (the “Uncertificated
Certificate”) to the Depositor.  Unless
and until the Depositor transfers all or a portion of the Percentage Interest
represented by such Uncertificated Certificate, such Uncertificated Certificate
shall represent one hundred percent (100%) of the Percentage Interest.  Upon issuance, the Certificates shall be
fully paid and nonassessable.

 

Section 3.2.            The Certificates.  (a)   The Certificates shall be in
uncertificated form with records of interest ownership maintained by the
Certificate Registrar in the Certificate Register.  If, on or after the Closing Date, the holder of
any Uncertificated Certificate delivers to the Owner Trustee a written request
that the Uncertificated Certificate specified in such request be issued in
certificated form (a related “Certification Request”), the Owner Trustee shall
promptly issue such Certificate to the holder thereof in certificated
form.  If a Certification Request has
been delivered, the Certificate will be issued in registered form,
substantially in the form of Exhibit A, and shall upon issue, be executed
and delivered by the Depositor to the Owner Trustee for authentication and
redelivery as provided in Section 3.3.

 

(b)           If
the Certificates are in certificated form, they shall be executed on behalf of
the Trust by manual or facsimile signature of an authorized officer of the
Owner Trustee.  Certificates bearing the
manual or facsimile signatures of individuals who were, at the time when such
signatures shall have been affixed, authorized to sign on behalf of the Trust,
shall be validly issued and entitled to the benefit of this Agreement,
notwithstanding that such individuals or any of them shall have ceased to be so

 

10

 

authorized prior to the authentication and delivery of
such Certificates or did not hold such offices at the date of authentication
and delivery of such Certificates.

 

(c)           A
transferee of a Certificate (whether in certificated or uncertificated form)
shall become a Certificateholder, and shall be entitled to the rights and
subject to the obligations of a Certificateholder hereunder, upon due
registration of such Certificate in such transferee’s name pursuant to
Section 3.4.  Any transfer of a
Certificate (whether in certificated or uncertificated form) shall satisfy each
of the transfer restrictions set forth herein and other requirements set forth
in the form of Certificate attached hereto as Exhibit A.

 

(d)           No
Certificates shall be issued under this Agreement unless such Certificates have
been authorized pursuant to the Series Supplement and all conditions
precedent to the issuance thereof, as specified in the Series Supplement
shall have been satisfied.  All
Certificates issued under this Agreement shall be in all respects entitled to
the benefits hereof and of the Owner Trust Estate.

 

Section 3.3.            Authentication of Certificates.  If the Certificates are in certificated form,
the Owner Trustee shall cause the related Certificates to be executed on behalf
of the Trust, authenticated and delivered to or upon the written order of the
Depositor, signed by its chairman of the board, its president or any vice
president, its treasurer or any assistant treasurer without further corporate
action by the Depositor, in authorized denominations.  No Certificate shall entitle its holder to
any benefit under this Agreement or, with respect to a Series, the
Series Supplement, or shall be valid for any purpose, unless there shall
appear on such Certificate a certificate of authentication substantially in the
form set forth in Exhibit A, executed by the Owner Trustee or its authenticating
agent, by manual signature; such authentication shall constitute conclusive
evidence that such Certificate shall have been duly authenticated and delivered
hereunder.  All Certificates shall be
dated the date of their authentication.

 

Section 3.4.            Registration of Transfer and
Exchange of Certificates. 
(a)  The Certificate Registrar shall keep or cause to be kept,
at the office or agency maintained pursuant to Section 3.8, a Certificate
Register in which, subject to such reasonable regulations as it may prescribe,
the Owner Trustee shall provide for the registration of Certificates (whether
in certificated or uncertificated form) and of transfers and exchanges of
Certificates (whether in certificated or uncertificated form) as herein
provided.  The Owner Trustee shall be the
initial Certificate Registrar.

 

(b)           The
Certificate Registrar shall provide the Indenture Trustee and the Administrator
with a list of the names and addresses of the Certificateholders on the Closing
Date in the form which such information is provided to the Certificate
Registrar by the Depositor.  Upon any
transfers of Certificates, the Certificate Registrar shall notify the Indenture
Trustee and the Administrator of the name and address of the transferee in
writing, by facsimile, on the day of such transfer.

 

(c)           If
a Certificate is in certificated form, upon surrender for registration of
transfer of any Certificate to the Certificate Registrar at the office or 

 

11

 

agency maintained pursuant to Section 3.8, the
Owner Trustee shall execute, authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Certificates of the same
Series in the aggregate Percentage Interest to be transferred, dated the
date of authentication by the Owner Trustee or any authenticating agent.  If a Certificate is in uncertificated form,
upon representation of such Certificate in accordance with Section 3.2,
the Certificate Registrar shall reflect in the Certificate Register the transfer
of the relevant Percentage Interest.  If
a Certificate is in certificated form, at the option of the Holder thereof,
such Certificate may be exchanged for one or more other Certificates of the
same Series in authorized denominations of a like Percentage Interest upon
surrender of the Certificates of the same Series, to be exchanged at the office
or agency maintained pursuant to Section 3.8.  Certificates may be issued in any Percentage
Interest not to exceed 100%.

 

(d)           Every
Certificate presented or, in the case of certificated Certificates, surrendered
for registration of transfer or exchange shall be accompanied by a written
instrument of transfer in form satisfactory to the Owner Trustee and the
Certificate Registrar duly executed by the Certificateholder or his attorney
duly authorized in writing, with such signature guaranteed by an “eligible
guarantor institution” meeting the requirements of the Certificate Registrar,
which requirements include membership or participation in the Securities Transfer
Agent’s Medallion Program (“STAMP”) or such other “signature guarantee program”
as may be determined by the Certificate Registrar in addition to, or in
substitution for, STAMP, all in accordance with the Exchange Act.  Each certificated Certificate surrendered for
registration of transfer or exchange shall be canceled and subsequently
disposed of by the Owner Trustee in accordance with its customary practice.

 

(e)           No
service charge shall be made for any registration of transfer or exchange of
Certificates, but the Owner Trustee or the Certificate Registrar may require
payment of a sum sufficient to cover any tax or governmental charge that may be
imposed in connection with any transfer or exchange of Certificates.

 

Section 3.5.            Mutilated, Destroyed, Lost or
Stolen Certificates.  If (a) any
mutilated Certificate shall be surrendered to the Certificate Registrar, or if
the Certificate Registrar shall receive evidence to its satisfaction of the
destruction, loss or theft of any Certificate and (b) there shall be
delivered to the Certificate Registrar and the Owner Trustee, such security or
indemnity as may be required by them to hold each of them harmless, then in the
absence of notice that such Certificate shall have been acquired by a bona fide
purchaser, the Owner Trustee on behalf of the Trust shall execute and the Owner
Trustee or its authenticating agent shall authenticate and deliver, in exchange
for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a
new Certificate of like Series principal balance.  In connection with the issuance of any new
Certificate under this Section, the Owner Trustee or the Certificate Registrar
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection therewith.  Any duplicate Certificate issued pursuant to
this section shall constitute conclusive evidence of an ownership interest
in the Trust, as if originally issued, whether or not the lost, stolen or
destroyed Certificate shall be found at any time.

 

12

 

Section 3.6.            Persons Deemed Certificateholders.  Every Person by virtue of becoming a
Certificateholder in accordance with this Agreement and the rules and
regulations of the Certificate Registrar shall be deemed to be bound by the
terms of this Agreement.  Prior to due
presentation of a Certificate for registration of transfer, the Owner Trustee
and the Certificate Registrar and any agent of the Owner Trustee and the
Certificate Registrar may treat the Person in whose name any Certificate shall
be registered in the Certificate Register as the owner of such Certificate for
the purpose of receiving distributions pursuant hereto, the Indenture or the
Series Supplement (in the case of a Certificate) and for all other
purposes whatsoever, and none of the Owner Trustee, the Certificate Registrar
nor any agent of the Owner Trustee or the Certificate Registrar shall be bound
by any notice to the contrary.

 

Section 3.7.            Access to List of
Certificateholders’ Names and Addresses. 
The Owner Trustee or the Certificate Registrar shall furnish or cause to
be furnished to the Master Servicer, the Depositor, the Indenture Trustee or
the Administrator within 15 days after receipt by the Owner Trustee or the
Certificate Registrar of a request therefor from such Person in writing, a
list, of the names and addresses of the Certificateholders as of the most
recent Record Date.  If three or more
Holders of Certificates or one or more Holders of Certificates evidencing not
less than 25% of the Percentage Interest apply in writing to the Owner Trustee
or the Certificate Registrar, and such application states that the applicants
desire to communicate with other Certificateholders with respect to their
rights under this Agreement, under the Certificates of such Series or
under the Series Supplement and such application is accompanied by a copy
of the communication that such applicants propose to transmit, then the Owner
Trustee or the Certificate Registrar shall, within five Business Days after the
receipt of such application, afford such applicants access during normal
business hours to the current list of Certificateholders of such Series.  Each Holder, by receiving and holding a Certificate,
shall be deemed to have agreed not to hold any of the Depositor, the Master
Servicer, the Owner Trustee or any agent thereof accountable by reason of the
disclosure of its name and address, regardless of the source from which such
information was derived.

 

Section 3.8.            Maintenance of Office or Agency.  The Owner Trustee or the Certificate
Registrar shall maintain in Chicago, Illinois, an office or offices or agency
or agencies where Certificates may be surrendered for registration of transfer
or exchange and where notices and demands to or upon the Owner Trustee in
respect of the Certificates and the Basic Documents may be served.  The Owner Trustee initially designates its
Corporate Trust Office for such purposes. 
The Owner Trustee shall give prompt written notice to the Depositor, the
Certificateholders and any Support Provider of any change in the location of
the Certificate Register or any such office or agency.

 

Section 3.9.            ERISA Restrictions.  The Certificates may not be acquired by or
for the account of (i) an employee benefit plan (as defined in
§ 3(3) of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”)) that is subject to the provisions of Title I of ERISA,
(ii) a plan (as defined in § 4975(e)(1) of the Code) that is
subject to Section 4975 of the Code or (iii) any entity whose
underlying assets include assets of a plan described in (i) or
(ii) by reason of such plan’s investment in the entity (each, a “Benefit
Plan”).  The Certificate Registrar shall not
register the 

 

13

 

transfer of a Certificate
unless the transferee has delivered to the Owner Trustee a representation
letter in form and substance satisfactory to the Owner Trustee to the effect
that the transferee is not, and is not acquiring the Certificate for the
account of, a Benefit Plan.

 

Section 3.10.          Securities Matters.  Notwithstanding anything contained herein to
the contrary, the Owner Trustee shall not be responsible for ascertaining
whether any transfer complies with the registration provisions or exemptions
from the Securities Act, the Exchange Act, applicable state securities law or
the Investment Company Act; provided, however, that if a
certificate is specifically required to be delivered to the Owner Trustee by a
purchaser or transferee of a Certificate, the Owner Trustee shall be under a
duty to examine the same to determine whether it conforms to the requirements
of this Agreement and shall promptly notify the party delivering the same if
such certificate does not so conform.

 

Section 3.11.          Distributions.  Distributions shall be made from time to time
by the Owner Trustee or the Certificate Paying Agent in accordance with the
Percentage Interests of the Certificateholders.

 

Section 3.12.          Certificate Paying Agent.  Distributions to be made in respect of the
Certificates pursuant to this Agreement, or the Series Supplement shall be
made by the Certificate Paying Agent, by wire transfer or check mailed to the
Certificateholder of record in the Certificate Register without the
presentation or surrender of the Certificate or the making of any notation
thereon, except as provided in Section 9.1(c) with respect to the
final distribution on a Certificates.

 

ARTICLE IV

Voting Rights and Other
Actions

 

Section 4.1.            Prior Notice to Holders with
Respect to Certain Matters.  With
respect to the following matters, the Owner Trustee shall not take action
unless at least 30 days before the taking of such action, the Owner Trustee
shall have notified the Certificateholders in writing of the proposed action
and Certificateholders holding, in the aggregate, greater than 50% of the
Percentage Interests (a “Certificate Majority”) shall not have notified the
Owner Trustee in writing prior to the 30th day after such notice is given that
such Certificateholders have withheld consent or provided alternative
direction:

 

(a)           the
election by the Trust to file an amendment to the Certificate of Trust, which
amendment shall have satisfied the Rating Agency Condition (unless such
amendment is required to be filed under the Statutory Trust Statute or unless
such amendment would not materially and adversely affect the interests of the
Holders);

 

(b)           the
amendment of the Indenture by a supplemental indenture in circumstances where
the consent of any Noteholder is required;

 

14

 

(c)           the
amendment of the Indenture by a supplemental indenture in circumstances where
the consent of any Noteholder is not required and such amendment materially
adversely affects the interest of the Certificateholders;

 

(d)           except
pursuant to Section 13.1(b) of the Master Sale and Servicing
Agreement, the amendment, change or modification of the Master Sale and
Servicing Agreement, except to cure any ambiguity or defect or to amend or
supplement any provision in a manner that would not materially adversely affect
the interests of the Certificateholders; or

 

(e)           the
Depositor shall not, without the unanimous consent of the holders of the
Class SV Preferred Stock of the Depositor, institute proceedings to be
adjudicated insolvent, or consent to the institution of any bankruptcy or
insolvency case or proceedings against it, or file or consent to a petition
under any applicable federal or state law relating to bankruptcy, seeking the
Depositor’s liquidation or reorganization or any other relief for the
Corporation as debtor, or consent to the appointment of a receiver, liquidator,
assignee, trustee, custodian or sequestrator (or other similar official) of the
Corporation or a substantial part of its property, or make any assignment for
the benefit of creditors, or admit in writing its inability to pay its debts
generally as they become due, or take any corporate action in furtherance of
such action.

 

The Owner Trustee shall notify the Certificateholders
in writing of any appointment of a successor Note Registrar or Certificate
Registrar within five Business Days thereof.

 

Section 4.2.            Action by Certificateholders with
Respect to Certain Matters.  The
Owner Trustee shall not have the power (a) to remove the Master Servicer
under the Master Sale and Servicing Agreement or (b) except as expressly
provided in the Indenture and the Series Supplement and at the written
direction of the Certificateholders, sell the Receivables after the termination
of the Indenture.  The Owner Trustee
shall take the actions referred to in the preceding sentence only upon written
instructions signed by the Certificateholders and the furnishing of
indemnification satisfactory to the Owner Trustee by the Certificateholders.

 

Section 4.3.            Action by Certificateholders with
Respect to Bankruptcy.  Until one
year and one day following the date of payment in full of the Notes, the Owner
Trustee shall not have the power to, and shall not, commence any proceeding or
other actions contemplated by Section 2.13(d) hereof relating to the
Trust without the prior written consent of all the Certificateholders and the
delivery to the Owner Trustee by each such Certificateholder of a certificate
certifying that such Certificateholder reasonably believes that the Trust is
insolvent.

 

Section 4.4.            Restrictions on
Certificateholders’ Power. 
(a)  The Certificateholders shall not direct the Owner Trustee
to take or refrain from taking any action if such action or inaction would be
contrary to any obligation of the Trust or the Owner Trustee under this
Agreement or any of the Basic Documents or would be 

 

15

 

contrary to
Section 2.3 or otherwise contrary to law nor shall the Owner Trustee be
obligated to follow any such direction, if given.

 

(b)           No
Certificateholder shall have any right by virtue or by availing itself of any
provisions of this Agreement to institute any suit, action, or proceeding in
equity or at law upon or under or with respect to this Agreement or any Basic
Document, unless there are no outstanding Notes and unless the Certificate
Majority previously shall have given to the Owner Trustee a written notice of
default and of the continuance thereof, as provided in this Agreement, and also
unless the Certificate Majority shall have made written request upon the Owner
Trustee to institute such action, suit or proceeding in its own name as Owner
Trustee under this Agreement and shall have offered to the Owner Trustee such
reasonable indemnity as it may require against the costs, expenses and
liabilities to be incurred therein or thereby, and the Owner Trustee, for 30
days after its receipt of such notice, request, and offer of indemnity, shall
have neglected or refused to institute any such action, suit, or proceeding,
and during such 30-day period no request or waiver inconsistent with such
written request has been given to the Owner Trustee pursuant to and in
compliance with this section or Section 6.3; it being understood and
intended, and being expressly covenanted by each Certificateholder with every
other Certificateholder and the Owner Trustee, that no one or more Holders of
Certificates shall have any right in any manner whatever by virtue or by
availing itself or themselves of any provisions of this Agreement to affect,
disturb, or prejudice the rights of the Holders of any other of the
Certificates, or to obtain or seek to obtain priority over or preference to any
other such Holder, or to enforce any right under this Agreement, except in the
manner provided in this Agreement and for the equal, ratable, and common
benefit of all Certificateholders.  For
the protection and enforcement of the provisions of this Section 4.4, each
and every Certificateholder and the Owner Trustee shall be entitled to such
relief as can be given either at law or in equity.

 

Section 4.5.            Majority Control.  No Certificateholder shall have any right to
vote or in any manner otherwise control the operation and management of the
Trust except as expressly provided in this Agreement.  Except as expressly provided herein, any
action that may be taken by the Certificateholders under this Agreement may be
taken by the Certificate Majority. 
Except as expressly provided herein, any written notice of the Certificateholders
delivered pursuant to this Agreement shall be effective if signed by the
Certificate Majority at the time of the delivery of such notice.

 

ARTICLE V

 

Certain Duties

 

Section 5.1.            Accounting and Records to the
Noteholders, Certificateholders, the Internal Revenue Service and Others.  Subject to Sections 12.1(b)(iii) and
12.1(c) of the Master Sale and Servicing Agreement, the Master Servicer
shall (a) maintain (or cause to be maintained) the books of the Trust on a
calendar year basis on the accrual method of accounting, including, without
limitation, the allocations of net income under Section 2.11,
(b) deliver (or cause to be delivered) to each Certificateholder, as may
be required by the Code and applicable Treasury Regulations, 

 

16

 

such information as may
be required (including Schedule K-1, if applicable) to enable each
Certificateholder to prepare its federal and state income tax returns,
(c) file or cause to be filed, if necessary, such tax returns relating to
the Trust (including a partnership information return, Form 1065, if
applicable), and direct the Owner Trustee or the Master Servicer, as the case
may be, to make such elections as may from time to time be required or
appropriate under any applicable state or federal statute or rule or
regulation thereunder so as to maintain the Trust’s characterization as a
disregarded entity, or if applicable, as a partnership, for federal income tax
purposes and (d) collect or cause to be collected any withholding tax as
described in and in accordance with the Master Sale and Serving Agreement or
the Series Supplement with respect to income or distributions to
Certificateholders and the appropriate forms relating thereto.  The Owner Trustee or the Master Servicer, as
the case may be, shall make all elections pursuant to this Section 5.1 as
directed in writing by the Depositor. 
The Owner Trustee shall sign all tax information returns, if any, filed
pursuant to this Section 5.1 and any other returns as may be required by
law, and in doing so shall rely entirely upon, and shall have no liability for
information provided by, or calculations provided by, the Depositor or the
Master Servicer.  The Owner Trustee shall
elect under Section 1278 of the Code to include in income currently any
market discount that accrues with respect to the Receivables.  The Owner Trustee shall not make the election
provided under Section 754 of the Code.

 

Section 5.2.            Signature on Returns; Tax Matters
Partner. 
(a)  Notwithstanding the provisions of Section 5.1 and in
the event that the Trust is characterized as a partnership for federal income
tax purposes, the Owner Trustee shall sign on behalf of the Trust the tax
returns of the Trust, unless applicable law requires a Certificateholder to
sign such documents, in which case such documents shall be signed by the
Depositor.

 

(b)           In
the event that the Trust is characterized as a partnership for federal income
tax purposes, the Depositor shall be the “tax matters partner” of the Trust
pursuant to the Code.

 

ARTICLE VI

Authority and Duties of
Owner Trustee

 

Section 6.1.            General Authority.  The Owner Trustee is authorized and directed
to execute and deliver on behalf of the Trust the Basic Documents to which the
Trust is named as a party and each certificate or other document attached as an
exhibit to or contemplated by the Basic Documents to which the Trust is named
as a party and any amendment thereto, in each case, in such form as the
Depositor shall approve as evidenced conclusively by the Owner Trustee’s
execution thereof, and on behalf of the Trust, to direct the Administrator to
authenticate and deliver the Notes.  In
addition to the foregoing, the Owner Trustee is authorized, but shall not be
obligated, to take all actions required of the Trust pursuant to the Basic
Documents.  The Owner Trustee is further
authorized from time to time to take such action as the Certificate Majority
recommends with respect to the Basic Documents so long as such activities are
consistent with the terms of the Basic Documents.

 

17

 

Section 6.2.            General Duties.  It shall be the duty of the Owner Trustee to
discharge (or cause to be discharged) all of its responsibilities pursuant to
the terms of this Agreement and to administer the Trust in accordance with the
provisions of this Agreement and in the interest of the Holders, subject to the
Basic Documents.  Notwithstanding the
foregoing, the Owner Trustee shall be deemed to have discharged its duties and
responsibilities hereunder and under the Basic Documents to the extent the
Master Servicer has agreed in the Master Sale and Servicing Agreement to
perform any act or to discharge any duty of the Trust or the Owner Trustee
hereunder or under any Basic Document and the Owner Trustee shall not be liable
for the default or failure of the Master Servicer to carry out its obligations
under the Master Sale and Servicing Agreement.

 

Section 6.3.            Action upon Instruction.  (a)  Subject to Article IV, the
Certificate Majority shall have the exclusive right to direct the actions of
the Owner Trustee in the management of the Trust, so long as such instructions
are not inconsistent with the express terms set forth herein or in any Basic
Document.  The Certificate Majority shall
not instruct the Owner Trustee in a manner inconsistent with this Agreement or
the Basic Documents.

 

(b)           The
Owner Trustee shall not be required to take any action hereunder or under any
Basic Document if the Owner Trustee shall have reasonably determined, or shall
have been advised by counsel, that such action is likely to result in liability
on the part of the Owner Trustee or is contrary to the terms hereof or of any
Basic Document or is otherwise contrary to law.

 

(c)           Whenever
the Owner Trustee is unable to decide between alternative courses of action
permitted or required by the terms of this Agreement or any Basic Document, the
Owner Trustee shall promptly give notice (in such form as shall be appropriate
under the circumstances) to the Certificate Majority requesting instruction as
to the course of action to be adopted, and to the extent the Owner Trustee acts
in good faith in accordance with any written instruction of the Certificate
Majority, the Owner Trustee shall not be liable on account of such action to
any Person.  If the Owner Trustee shall
not have received appropriate instruction within ten days of such notice (or
within such shorter period of time as reasonably may be specified in such
notice or may be necessary under the circumstances) it may, but shall be under
no duty to, take or refrain from taking such action, not inconsistent with this
Agreement or the Basic Documents or as it shall deem to be in the best
interests of the Certificateholders, and shall have no liability to any Person
for such action or inaction.

 

(d)           In
the event that the Owner Trustee is unsure as to the application of any
provision of this Agreement or any Basic Document or any such provision is
ambiguous as to its application, or is, or appears to be, in conflict with any
other applicable provision, or in the event that this Agreement permits any
determination by the Owner Trustee or is silent or is incomplete as to the
course of action that the Owner Trustee is required to take with respect to a
particular set of facts, the Owner Trustee may give notice (in such form as
shall be appropriate under the circumstances) to the Certificate Majority
requesting instruction and, to the extent that the Owner Trustee acts 

 

18

 

or refrains from acting in good faith in accordance
with any such instruction received, the Owner Trustee shall not be liable, on
account of such action or inaction, to any Person.  If the Owner Trustee shall not have received
appropriate instruction within 10 days of such notice (or within such shorter
period of time as reasonably may be specified in such notice or may be
necessary under the circumstances) it may, but shall be under no duty to, take
or refrain from taking such action, not inconsistent with this Agreement or the
Basic Documents, as it shall deem to be in the best interests of the
Certificateholders, and shall have no liability to any Person for such action
or inaction.

 

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

 

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

 

Section 6.6.            Restrictions.  The Owner Trustee shall not take any action
(a) that is inconsistent with the purposes of the Trust set forth in
Section 2.3 or (b) that, to the actual knowledge of the Owner
Trustee, would result in the Trust’s becoming taxable as a corporation or a
publicly traded partnership for federal income tax purposes.  The Certificateholders shall not direct the
Owner Trustee to take action that would violate the provisions of this Section.

 

19

 

ARTICLE VII

Concerning the Owner
Trustee

 

Section 7.1.            Acceptance of Trust and Duties.  The Owner Trustee accepts the trust hereby
created and agrees to perform its duties hereunder with respect to such trust
but only upon the terms of this Agreement. 
The Owner Trustee and the Certificate Paying Agent also agree to
disburse all monies actually received by it constituting part of the Owner
Trust Estate upon the terms of this Agreement or the Basic Documents.  The Owner Trustee shall not be answerable or
accountable hereunder or under any Basic Document under any circumstances,
except (i) for its own willful misconduct, bad faith or negligence,
(ii) in the case of the inaccuracy of any representation or warranty
contained in Section 7.3 expressly made by the Owner Trustee in its
individual capacity, (iii) for liabilities arising from the failure of the
Owner Trustee to perform obligations expressly undertaken by it in the last
sentence of Section 6.4 hereof, (iv) for any investments issued by
the Owner Trustee or any branch or affiliate thereof in its commercial capacity
or (v) for taxes, fees or other charges on, based on or measured by, any
fees, commissions or compensation received by the Owner Trustee.  In particular, but not by way of limitation
(and subject to the exceptions set forth in the preceding sentence):

 

(a)           the
Owner Trustee shall not be liable for any error of judgment made by a
Responsible Officer of the Owner Trustee;

 

(b)           the
Owner Trustee shall not be liable with respect to any action taken or omitted
to be taken by it in accordance with the instructions of the Certificate
Majority, the Depositor, the Master Servicer or any Certificateholder;

 

(c)           no
provision of this Agreement or any Basic Document shall require the Owner
Trustee to expend or risk funds or otherwise incur any financial liability in
the performance of any of its rights or powers hereunder or under any Basic
Document if the Owner Trustee shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured or provided to it;

 

(d)           under
no circumstances shall the Owner Trustee be liable for indebtedness evidenced
by or arising under any of the Basic Documents or any Related Document,
including the principal of and interest on the Notes;

 

(e)           the
Owner Trustee shall not be responsible for or in respect of the validity or
sufficiency of this Agreement or for the due execution hereof by the Depositor
or for the form, character, genuineness, sufficiency, value or validity of any
of the Owner Trust Estate or for or in respect of the validity or sufficiency
of the Basic Documents or any Related Document, other than the certificate of
authentication on the Certificates, and the Owner Trustee shall in no event
assume or incur any liability, duty or obligation to the Depositor, any Support
Provider, the Indenture Trustee, the Administrator, the 

 

20

 

Certificate Paying Agent, any Noteholder or to any
Certificateholder, other than as expressly provided for herein or in the Basic
Documents;

 

(f)            the
Owner Trustee shall not be liable for the default or misconduct of the
Depositor, any Support Provider, the Indenture Trustee, the Administrator or
the Master Servicer under any of the Basic Documents or otherwise and the Owner
Trustee shall have no obligation or liability to perform the obligations under
this Agreement or the Basic Documents that are required to be performed by the
Depositor or the Certificate Paying Agent under this Agreement, by the
Indenture Trustee or the Administrator under the Indenture, the
Series Supplement or any Related Document or the Master Servicer under the
Master Sale and Servicing Agreement or the Series Supplement; and

 

(g)           the
Owner Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Agreement, or to institute, conduct or defend any
litigation under this Agreement or otherwise or in relation to this Agreement
or any Basic Document at the request, order or direction of the Certificate
Majority or any of the Certificateholders, unless such Certificate Majority or
Certificateholders have offered to the Owner Trustee security or indemnity
satisfactory to it against the costs, expenses and liabilities that may be
incurred by the Owner Trustee therein or thereby.  The right of the Owner Trustee to perform any
discretionary act enumerated in this Agreement or in any Basic Document shall
not be construed as a duty, and the Owner Trustee shall not be answerable for
other than its negligence, bad faith or willful misconduct in the performance
of any such act.

 

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

 

Section 7.3.            Representations and Warranties.  The Owner Trustee hereby represents and
warrants, in its individual capacity, to the Depositor, the Holders and any
Support Provider (which shall have relied on such representations and
warranties in issuing any policy relating to Series Support), that:

 

(a)           It
is a national banking association, duly organized, validly existing and in good
standing under the laws of the United States. 
It has all requisite power and authority to execute, deliver and perform
its obligations under this Agreement.

 

(b)           It
has taken all actions necessary to authorize the execution and delivery by it
of this Agreement, and this Agreement will be executed and delivered by one of
its officers who is duly authorized to execute and deliver this Agreement on its
behalf.

 

(c)           Neither
the execution nor the delivery by it of this Agreement, nor the consummation by
it of the transactions contemplated hereby nor compliance by it with any of the
terms or provisions hereof will contravene any federal or Delaware state law,
governmental rule or regulation governing the banking or trust powers of
it or any 

 

21

 

judgment or order binding on it, or constitute any
default under its charter documents or by-laws or any indenture, mortgage,
contract, agreement or instrument to which it is a party or by which any of its
properties may be bound.

 

(d)           This
Agreement constitutes the legal, valid and binding obligation of the Owner
Trustee, enforceable against it in accordance with its terms except as the
enforceability thereof may be limited by bankruptcy, insolvency, moratorium,
reorganization or other similar laws affecting the enforcement of creditors’
rights generally and by general principles of equity.

 

(e)           It
is authorized to exercise trust powers in the State of Delaware as and to the
extent contemplated herein and it has a principal place of business in the
State of Delaware.

 

Section 7.4.            Reliance; Advice of Counsel.  (a)  The Owner Trustee shall incur
no liability to anyone in acting upon any signature, instrument, notice,
resolution, request, consent, order, certificate, report, opinion, bond or
other document or paper believed by it to be genuine and believed by it to be
signed by the proper party or parties. 
The Owner Trustee may accept a certified copy of a resolution of the
board of directors or other governing body of any corporate party as conclusive
evidence that such resolution has been duly adopted by such body and that the
same is in full force and effect.  As to any
fact or matter the method of the determination of which is not specifically
prescribed herein, the Owner Trustee may for all purposes hereof rely on a
certificate, signed by the president or any vice president or by the treasurer,
secretary or other authorized officers of the relevant party, as to such fact
or matter, and such certificate shall constitute full protection to the Owner
Trustee for any action taken or omitted to be taken by it in good faith in
reliance thereon.

 

(b)           In
the exercise or administration of the trusts hereunder and in the performance
of its duties and obligations under this Agreement or the Basic Documents, the
Owner Trustee (i) may act directly or through its agents or attorneys
pursuant to agreements entered into with any of them, and the Owner Trustee
shall not be liable for the conduct or misconduct of such agents or attorneys
if such agents or attorneys shall have been selected by the Owner Trustee with
reasonable care, and (ii) may consult with counsel, accountants and other
skilled persons to be selected with reasonable care and employed by it.  The Owner Trustee shall not be liable for
anything done, suffered or omitted in good faith by it in accordance with the
written opinion or advice of any such counsel, accountants or other such
persons and according to such opinion not contrary to this Agreement or any
Basic Document.

 

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

 

22

 

Section 7.6.            Owner Trustee Not Liable for
Certificates or Receivables. 
The recitals contained herein and in certificated Certificates (other
than the signature and countersignature of the Owner Trustee on such
Certificates) shall be taken as the statements of the Depositor and the Owner
Trustee assumes no responsibility for the correctness thereof.  The Owner Trustee makes no representations as
to the validity or sufficiency of this Agreement, of any Basic Document or of
the Certificates (other than the signature and countersignature of the Owner
Trustee on certificated Certificates) or the Notes, or of any Receivable or
related documents.  The Owner Trustee
shall at no time have any responsibility or liability for or with respect to
the legality, validity and enforceability of any Receivable, or the perfection
and priority of any security interest created by any Receivable in any Financed
Vehicle or the maintenance of any such perfection and priority, or for or with
respect to the sufficiency of the Owner Trust Estate or its ability to generate
the payments to be distributed to Certificateholders under this Agreement or
the Noteholders under the Indenture, including, without limitation:  the existence, condition and ownership of any
Financed Vehicle; the existence and enforceability of any insurance thereon;
the existence and contents of any Receivable on any computer or other record
thereof; the validity of the assignment of any Receivable to the Trust or of
any intervening assignment; the completeness of any Receivable; the performance
or enforcement of any Receivable; the compliance by the Depositor, the Master
Servicer or any other Person with any warranty or representation made under any
Basic Document or in any related document or the accuracy of any such warranty
or representation or any action of the Indenture Trustee, the Administrator or
the Master Servicer or any subservicer taken in the name of the Owner Trustee.

 

Section 7.7.            Owner
Trustee May Own Certificates and Notes.  The Owner Trustee in its individual or any
other capacity may become the owner or pledgee of Certificates or Notes and may
deal with the Depositor, the Indenture Trustee, the Administrator and the
Master Servicer in banking transactions with the same rights as it would have
if it were not Owner Trustee.

 

Section 7.8.            Payments
from Owner Trust Estate  All
payments to be made by the Owner Trustee or any Certificate Paying Agent under
this Agreement or any of the Basic Documents shall be made only from the income
and proceeds of the Owner Trust Estate and only to the extent that the Owner
Trustee shall have received income or proceeds from the Owner Trust Estate to
make such payments in accordance with the terms hereof.  The Owner Trustee,
or any successor thereto, in its individual capacity, shall not be liable for
any amounts payable under this Agreement or any of the Basic Documents.

 

Section 7.9.            Doing Business in Other Jurisdictions.  Notwithstanding anything contained herein to
the contrary, the Owner Trustee (in its individual and trustee capacities)
shall not be required to take any action in any jurisdiction other than in the
State of Delaware if the taking of such action will, even after the appointment
of a co-trustee or separate trustee in accordance with Section 10.5 hereof,
(i) require the consent or approval or authorization or order of or the
giving of notice to, or the registration with or the taking of any other action
in respect of, any state or other governmental authority or agency of any
jurisdiction other than the State of Delaware; (ii) result in any fee, tax
or

 

23

 

other governmental charge
under the laws of the State of Delaware becoming payable by the Owner Trustee
(in its individual capacity); or (iii) subject the Owner Trustee (in its
individual capacity) to personal jurisdiction in any jurisdiction other than
the State of Delaware for causes of action arising from acts unrelated to the
consummation of the transactions by the Owner Trustee (in its individual and
trustee capacities) contemplated hereby.

 

ARTICLE VIII

 

Compensation of Owner
Trustee

 

Section 8.1.            Owner Trustee’s Fees and Expenses.  The Owner Trustee shall receive as
compensation for its services hereunder such fees as have been separately
agreed upon before the date hereof between HSBC Finance and the Owner Trustee,
and the Owner Trustee shall be entitled to be reimbursed by the Depositor for
its other reasonable expenses hereunder, including the reasonable compensation,
expenses and disbursements of such agents, representatives, experts and counsel
as the Owner Trustee may employ in connection with the exercise and performance
of its respective rights and duties hereunder or under the Basic Documents.

 

Section 8.2.            Indemnification.  To the fullest extent permitted by applicable
law, the Depositor shall be liable as primary obligor for, and shall indemnify
the Owner Trustee (in its individual and trustee capacities) and its officers,
directors, successors, assigns, agents and servants (collectively, the “Indemnified
Parties”) from and against, any and all liabilities, obligations, losses,
damages, taxes, claims, actions and suits, and any and all reasonable costs,
expenses and disbursements (including reasonable legal fees and expenses) of
any kind and nature whatsoever (collectively, “Expenses”) which may at any time
be imposed on, incurred by, or asserted against the Owner Trustee (in its trust
or individual capacities) or any Indemnified Party in any way relating to or
arising out of this Agreement or the Basic Documents, the Owner Trust Estate,
the administration of the Owner Trust Estate or the action or inaction of the
Owner Trustee hereunder, except only that the Depositor shall not be liable for
or required to indemnify the Owner Trustee from and against Expenses arising or
resulting from any of the matters described in the third sentence of
Section 7.1.  The indemnities
contained in this Section 8.2 and the rights under Section 8.1 shall
survive the resignation or termination of the Owner Trustee or the termination
of this Agreement.  In any event of any
claim, action or proceeding for which indemnity will be sought pursuant to this
Section, the Owner Trustee’s choice of legal counsel shall be subject to the
approval of the Depositor which approval shall not be unreasonably withheld.

 

Section 8.3.            Payments to the Owner Trustee.  Any amounts paid to the Owner Trustee in its
trustee capacity pursuant to this Article VIII shall be deemed not to be a
part of the Owner Trust Estate immediately after such payment and any amounts
so paid to the Owner Trustee, in its individual capacity shall not be so paid
out of the Owner Trust Estate but shall be the property of the Owner Trustee in
its individual capacity.

 

24

 

Section 8.4.            Non-recourse Obligations.  Notwithstanding anything in this Agreement or
any Basic Document, the Owner Trustee agrees in its individual capacity and in
its capacity as Owner Trustee for the Trust that all obligations of the Trust
to the Owner Trustee individually or as Owner Trustee for the Trust shall be
recourse to the Owner Trust Estate only and specifically shall not be recourse
to the assets of any Certificateholder.

 

ARTICLE IX

 

Termination of Agreement

 

Section 9.1.            Termination of Agreement.  (a)  This Agreement shall terminate
and the Trust shall dissolve, wind up, terminate and be of no further force or
effect upon the latest to occur of (i) the maturity or other liquidation
of the last Receivable (including the optional purchase by the Depositor or the
Master Servicer of the corpus of the Trust as described in Section 11.1 of
the Master Sale and Servicing Agreement) and the subsequent distribution of
amounts in respect of such Receivables as provided in the Basic Documents and,
with respect to amounts released from the Lien of the Indenture, distribution
thereof to the Certificateholders, or (ii) the payment to Noteholders and
Certificateholders of all amounts required to be paid to them pursuant to the
Indenture and this Agreement, including, with respect to amounts released from
the Lien of the Indenture, distribution thereof to the Certificateholders and
the payment to any Support Provider of all amounts payable or reimbursable to
it pursuant to the Series Supplement; provided, however,
that the rights to indemnification under Section 8.2 and the rights under
Section 8.1 shall survive the termination of the Trust.  The Master Servicer shall promptly notify the
Owner Trustee of any prospective termination pursuant to this Section 9.1.  The bankruptcy, liquidation, dissolution,
death or incapacity of any Certificateholder shall not (x) operate to terminate
this Agreement or the Trust, nor (y) entitle such Certificateholder’s legal
representatives or heirs to claim an accounting or to take any action or
proceeding in any court for a partition or winding up of all or any part of the
Trust or Owner Trust Estate nor (z) otherwise affect the rights, obligations
and liabilities of the parties hereto.

 

(b)           Except
as provided in clause (a), neither the Depositor nor any other
Certificateholder shall be entitled to revoke or terminate the Trust.

 

(c)           If
any Certificates are in certificated form, notice of any termination of a
Series Trust Estate, specifying the Distribution Date upon which the
Certificateholders of such Series shall surrender their Certificates to
the Certificate Paying Agent for payment of the final distribution and
cancellation, shall be given by the Owner Trustee by letter to
Certificateholders of such Series mailed within five Business Days of
receipt of notice of such termination given pursuant to
Section 9.1(a) hereof, stating (i) the Distribution Date upon or
with respect to which final payment of the Certificates of such
Series shall be made upon presentation and surrender of the Certificates
of such Series at the office of the Certificate Paying Agent therein
designated, (ii) the amount of any such final payment, (iii) that the
Record Date otherwise applicable to such Distribution Date is not applicable,
payments being made only upon

 

25

 

presentation and surrender of the
Certificates of such Series at the office of the Certificate Paying Agent
therein specified and (iv) interest will cease to accrue on the
Certificates of such Series.  The Owner
Trustee shall give such notice to the Certificate Registrar (if other than the
Owner Trustee) and the Certificate Paying Agent at the time such notice is
given to Certificateholders.  Upon
presentation and surrender of the Certificates of such Series, the Certificate
Paying Agent shall cause to be distributed to Certificateholders of such
Series amounts distributable pursuant to the Series Supplement.

 

(d)           If
any Certificates are in certificated form, in the event that all of the Certificateholders
holding certificated Certificates of such Series shall not surrender their
Certificates for cancellation within six months after the date specified in the
above-mentioned written notice, the Certificate Paying Agent shall give a second
written notice to the remaining Certificateholders holding certificated
Certificates of such Series to surrender their Certificates for
cancellation and receive the final distribution with respect thereto.  If within one year after the second notice
all the certificated Certificates of such Series shall not have been
surrendered for cancellation, the Certificate Paying Agent may take appropriate
steps, or may appoint an agent to take appropriate steps, to contact the
remaining Certificateholders holding certificated Certificates concerning
surrender of their Certificates, and the cost thereof shall be paid out of the
funds and other Series Trust Estate assets that shall remain subject to
this Agreement.  Any funds remaining in
the Trust after exhaustion of such remedies shall be distributed, subject to
applicable escheat laws, by the Certificate Paying Agent to the Depositor and
Holders shall look solely to the Depositor for payment.

 

(e)           Any
funds remaining in the Trust after funds for final distribution have been
distributed or set aside for distribution shall be distributed by the
Certificate Paying Agent to the Depositor.

 

(f)            Upon
the winding up of the Trust and its termination, the Owner Trustee shall cause
the Certificate of Trust to be canceled by filing a certificate of cancellation
with the Secretary of State in accordance with the provisions of
Section 3810 of the Statutory Trust Statute.

 

ARTICLE X

 

Successor Owner Trustees
and Additional Owner Trustees

 

Section 10.1.          Eligibility Requirements for Owner Trustee.  The Owner Trustee shall at all times be a
corporation or national banking association (i) satisfying the provisions
of Section 3807(a) of the Statutory Trust Statute,
(ii) authorized to exercise corporate trust powers; (iii) having a
combined capital and surplus of at least $50,000,000 and subject to supervision
or examination by federal or state authorities; (iv) having (or having a
parent which has) a rating of at least Baa3 by Moody’s or A-1 by
Standard & Poors; and (v) acceptable to the Certificateholders.  If such corporation shall publish reports of
condition at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then for the purpose of this
Section, the combined capital and surplus of such corporation shall be deemed
to be its combined 

 

26

 

capital
and surplus as set forth in its most recent report of condition so
published.  In case at any time the Owner
Trustee shall cease to be eligible in accordance with the provisions of this
Section, the Owner Trustee shall resign immediately in the manner and with the
effect specified in Section 10.2.

 

Section 10.2.          Resignation or Removal of Owner
Trustee.  The Owner Trustee
may at any time resign and be discharged from the trusts hereby created by
giving written notice thereof to the Depositor (or in the event that the
Depositor is not the sole Certificateholder, the Certificate Majority), any
Support Provider and the Master Servicer. 
Upon receiving such notice of resignation, the Depositor shall promptly
appoint a successor Owner Trustee, meeting the qualifications set forth in
Section 10.1 herein, by written instrument, in duplicate, one copy of
which instrument shall be delivered to the resigning Owner Trustee and one copy
to the successor Owner Trustee; provided  that the Depositor shall
have received written confirmation from each of the Rating Agencies that the
proposed appointment will not result in an increased capital charge to any
Support Provider by either of the Rating Agencies.  If no successor Owner Trustee shall have been
so appointed and have accepted appointment within 30 days after the giving of
such notice of resignation, the resigning Owner Trustee or any Support Provider
may petition any court of competent jurisdiction for the appointment of a
successor Owner Trustee.

 

If at any time the Owner Trustee shall cease to be
eligible in accordance with the provisions of Section 10.1 and shall fail
to resign after written request therefor by the Depositor, or if at any time
the Owner Trustee shall be legally unable to act, or shall be adjudged bankrupt
or insolvent, or a receiver of the Owner Trustee or of its respective property
shall be appointed, or any public officer shall take charge or control of the
Owner Trustee or of its respective property or affairs for the purpose of
rehabilitation, conservation or liquidation, then the Depositor may remove the
Owner Trustee.  If the Depositor shall
remove the Owner Trustee under the authority of the immediately preceding
sentence, the Depositor shall promptly appoint a successor Owner Trustee
meeting the qualifications set forth in Section 10.1 herein, by written
instrument, in triplicate, one copy of which instrument shall be delivered to the
outgoing Owner Trustee so removed, one copy to any Support Provider and one
copy to the successor Owner Trustee.

 

Any resignation or removal of the Owner Trustee and
appointment of a successor Owner Trustee pursuant to any of the provisions of
this Section 10.2 shall not become effective until acceptance of
appointment by the successor Owner Trustee pursuant to Section 10.3 and
payment of all fees and expenses owed to the outgoing Owner Trustee.  The Depositor shall provide notice of such
resignation or removal of the Owner Trustee to each of the Rating Agencies.

 

Section 10.3.          Successor Owner Trustee.  Any successor Owner Trustee appointed
pursuant to Section 10.2 shall execute, acknowledge and deliver to the
Depositor, the Master Servicer, any Support Provider and to its predecessor
Owner Trustee an instrument accepting such appointment under this Agreement,
and thereupon the resignation or removal of its predecessor shall become
effective and the successor 

 

27

 

Owner Trustee, without
any further act, deed or conveyance, shall become fully vested with all the
rights, powers, duties and obligations of its predecessor under this Agreement,
with like effect as if originally named as Owner Trustee.  The predecessor Owner Trustee shall upon
payment of its fees and expenses deliver to the successor Owner Trustee all
documents and statements and monies held by it under this Agreement; and the
Depositor and the predecessor Owner Trustee shall execute and deliver such instruments
and do such other things as may reasonably be required for fully and certainly
vesting and confirming in the successor Owner Trustee all such rights, powers,
duties and obligations.

 

No successor Owner Trustee shall accept appointment as
provided in this Section 10.3 unless at the time of such acceptance such
successor Owner Trustee shall be eligible pursuant to Section 10.1.

 

Upon acceptance of appointment by a successor Owner
Trustee pursuant to this Section, the Master Servicer shall mail notice of the
successor of such Owner Trustee to all Certificateholders, the Indenture
Trustee, the Administrator, the Noteholders and the Rating Agencies.  If the Master Servicer shall fail to mail
such notice within 10 days after acceptance of appointment by the successor
Owner Trustee, the successor Owner Trustee shall cause such notice to be mailed
at the expense of the Master Servicer.

 

Any successor Owner Trustee appointed pursuant to this
Section 10.3 shall promptly file an amendment to the Certificate of Trust
with the Secretary of State identifying the name and principal place of
business of such successor Owner Trustee in the State of Delaware.

 

Section 10.4.          Merger or Consolidation of Owner
Trustee.  Any corporation into
which the Owner Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Owner Trustee shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Owner Trustee, shall be the successor of the Owner Trustee hereunder, provided
such corporation shall be eligible pursuant to Section 10.1, without the
execution or filing of any instrument or any further act on the part of any of
the parties hereto, anything herein to the contrary notwithstanding; provided,
further, that the Owner Trustee shall mail notice of such merger or
consolidation to the Rating Agencies, the Depositor and the Master Servicer.

 

Section 10.5.          Appointment of Co-Trustee or Separate
Trustee.  Notwithstanding any
other provisions of this Agreement, at any time, for the purpose of meeting any
legal requirements of any jurisdiction in which any part of the Owner Trust
Estate or any Financed Vehicle may at the time be located, the Master Servicer
and the Owner Trustee acting jointly shall have the power and shall execute and
deliver all instruments to appoint one or more Persons approved by the Owner
Trustee and any Support Provider to act as co-trustee, jointly with the Owner Trustee,
or separate trustee or separate trustees, of all or any part of the Owner Trust
Estate, and to vest in such Person, in such capacity, such title to the Trust,
or any part thereof, and, subject to the 

 

28

 

other
provisions of this Section, such powers, duties, obligations, rights and trusts
as the Master Servicer and the Owner Trustee may consider necessary or
desirable.  If the Master Servicer shall
not have joined in such appointment within 15 days after the receipt by it of a
request so to do, the Owner Trustee and subject to the approval of the
Certificate Majority (which approval shall not be unreasonably withheld), shall
have the power to make such appointment. 
No co-trustee or separate trustee under this Agreement shall be required
to meet the terms of eligibility as a successor trustee pursuant to
Section 10.1 and no notice of the appointment of any co-trustee or
separate trustee shall be required pursuant to Section 10.3.

 

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

 

(i)            all
rights, powers, duties and obligations conferred or imposed upon the Owner
Trustee shall be conferred upon and exercised or performed by the Owner Trustee
and such separate trustee or co-trustee jointly (it being understood that such
separate trustee or co-trustee is not authorized to act separately without the
Owner Trustee joining in such act), except to the extent that under any law of
any jurisdiction in which any particular act or acts are to be performed, the
Owner Trustee shall be incompetent or unqualified to perform such act or acts,
in which event such rights, powers, duties and obligations (including the
holding of title to the Trust or any portion thereof in any such jurisdiction)
shall be exercised and performed singly by such separate trustee or co-trustee,
but solely at the direction of the Owner Trustee;

 

(ii)           no trustee under this Agreement shall be personally liable
by reason of any act or omission of any other trustee under this Agreement; and

 

(iii)          the Master Servicer and the Owner Trustee acting jointly may
at any time accept the resignation of or remove any separate trustee or
co-trustee.

 

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

 

Any separate trustee or co-trustee may at any time
appoint the Owner Trustee, its agent or attorney-in-fact with full power and
authority, to the extent not prohibited by law, to do any lawful act under or
in respect of this Agreement on its behalf and in its name.  If any separate trustee or co-trustee shall
die, become incapable of 

 

29

 

acting, resign or be
removed, all of its estates, properties, rights, remedies and trusts shall vest
in and be exercised by the Owner Trustee, to the extent permitted by law,
without the appointment of a new or successor trustee.

 

ARTICLE XI

 

Miscellaneous

 

Section 11.1.          Supplements and Amendments.  (a)  This Agreement may be amended from
time to time by the parties hereto by a written instrument signed by each of
them, without the consent of any of the Securityholders; provided that
an Opinion of Counsel for the Depositor (which Opinion of Counsel may, as to
factual matters, rely upon Officer’s Certificates of the Depositor) is
addressed and delivered to the Owner Trustee, dated the date of any such
amendment, to the effect that the conditions precedent to any such amendment
have been satisfied and the Depositor shall have delivered to the Owner Trustee
an Officer’s Certificate dated the date of any such Amendment, stating that the
Depositor reasonably believes that such Amendment will not have a material adverse
effect on the Securityholders.

 

(b)           This
Agreement may also be amended from time to time with the consent of the
Noteholders evidencing not less than a majority of the Outstanding Amount of
the Notes, and the consent of the Certificateholders representing at least a
50% Percentage Interest, for which the Seller has not delivered an Officer’s
Certificate stating that there is no material adverse effect, for the purpose
of adding any provisions to or changing in any manner or eliminating any of the
provisions of this Agreement or of modifying in any manner the rights of the
Securityholders; provided, however, that no such amendment shall
(i) reduce in any manner the amount of, or delay the timing of, payments
received that are required to be distributed on any Security without the
consent of the related Securityholder, or (ii) reduce the aforesaid
percentage of Securities the Holder of which are required to consent to any
such amendment, without the consent of the Holders of all such Certificates then
outstanding or cause any material adverse tax consequences to any
Certificateholders or Noteholders.

 

Prior to the execution of any such amendment or
consent, the Owner Trustee shall furnish written notification of the substance
of such amendment or consent to each Certificateholder, the Indenture Trustee,
the Administrator and each of the Rating Agencies.

 

It shall not be necessary for the consent of
Certificateholders, the Noteholders or the Indenture Trustee pursuant to this
Section to approve the particular form of any proposed amendment or
consent, but it shall be sufficient if such consent shall approve the substance
thereof.  The manner of obtaining such
consents (and any other consents of Certificateholders provided for in this
Agreement or in any other Basic Document) and of evidencing the authorization
of the execution thereof by Certificateholders shall be subject to such
reasonable requirements as the Owner Trustee may prescribe.  Promptly after the execution of any amendment
to the Certificate of 

 

30

 

Trust, including, without
limitation, amendments pursuant this Section, the Owner Trustee shall cause the
filing of such amendment with the Secretary of State.

 

(c)           The
Owner Trustee shall not be required to enter into any amendment to this
Agreement which adversely affects their respective rights, duties or immunities
under this Agreement.

 

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

 

Section 11.3.          Limitations on Rights of Others.  The provisions of this Agreement are solely
for the benefit of the Owner Trustee, the Depositor, the Certificateholders,
the Master Servicer and any Support Provider, the Indenture Trustee, the
Administrator and the Noteholders, and nothing in this Agreement, whether
express or implied, shall be construed to give to any other Person any legal or
equitable right, remedy or claim in the Owner Trust Estate or under or in
respect of this Agreement or any covenants, conditions or provisions contained
herein.

 

Section 11.4.          Notices.  (a)  Unless otherwise expressly
specified or permitted by the terms hereof, all notices shall be in writing and
shall be deemed given upon receipt personally delivered, delivered by overnight
courier or mailed first class mail or certified mail, in each case return
receipt requested, and shall be deemed to have been duly given upon receipt, if
to the Owner Trustee, addressed to its Corporate Trust Office; if to the
Depositor, addressed to HSBC Auto Receivables Corporation, 1111 Town Center
Drive, Las Vegas, Nevada 89144, with a copy to HSBC Finance Corporation, 2700
Sanders Road, Prospect Heights, Illinois 60070, Attn: Treasurer; if to any
Support Provider, at the address of such Support Provider as set forth in the
Series Supplement; or, as to each party, at such other address as shall be
designated by such party in a written notice to each other party.

 

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

 

Section 11.5.          Severability.  Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

31

 

Section 11.6.          Separate Counterparts.  This Agreement may be executed by the parties
hereto in separate counterparts, each of which when so executed and delivered
shall be an original, but all such counterparts shall together constitute but
one and the same instrument.

 

Section 11.7.          Assignments; Support Provider.  This Agreement shall inure to the benefit of
and be binding upon the parties hereto and their
respective successors and permitted assigns. 
This Agreement shall also inure to the benefit of any Support
Provider.  Without limiting the
generality of the foregoing, all covenants and agreements in this Agreement which
confer rights upon any Support Provider shall be for the benefit of and run
directly to any Support Provider, and any Support Provider shall be entitled to
rely on and enforce such covenants, subject, however, to the limitations on
such rights provided in this Agreement and the Basic Documents.  The Support Provider, if any, may disclaim
any of its rights and powers under this Agreement (but not its duties and
obligations under any Series Support) upon delivery of a written notice to
the Owner Trustee.

 

Section 11.8.          Covenants of the Depositor.  The Depositor will not at any time institute
against the Trust any bankruptcy proceedings under any United States federal or
state bankruptcy or similar law in connection with any obligations relating to
the Certificates, the Notes, this Agreement or any of the Basic Documents.

 

Section 11.9.          No Petition. 
To the fullest extent permitted by applicable law, the Owner Trustee
(not in its individual capacity but solely as Owner Trustee), by entering into
this Agreement, each Certificateholder, by accepting a Certificate, and the
Indenture Trustee, the Administrator and each Noteholder by accepting the
benefits of this Agreement, hereby covenants and agrees that they will not at
any time institute against the Depositor, or join in any institution against
the Depositor of, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other proceedings under any United States federal
or state bankruptcy or similar law in connection with any obligations relating
to the Certificates, the Notes, this Agreement, any of the Basic Documents, the
Series Supplement or any Related Documents.

 

Section 11.10.        No Recourse. 
Each Certificateholder by accepting a Certificate acknowledges that such
Certificateholder’s Certificates represent beneficial interests in the Owner
Trust Estate only and do not represent interests in or obligations of the
Master Servicer, the Depositor, the Owner Trustee, the Indenture Trustee, the
Administrator, any Support Provider or any Affiliate thereof and no recourse
may be had against such parties or their assets, except as may be expressly set
forth or contemplated in this Agreement, the Certificates, the Basic Documents,
the Series Supplement or any Related Documents.

 

Section 11.11.        Headings.  The headings of the various Articles and
Sections herein are for convenience of reference only and shall not define or
limit any of the terms or provisions hereof.

 

32

 

Section 11.12.        GOVERNING LAW.  THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

Section 11.13.        Master Servicer. 
The Master Servicer is authorized to prepare, or cause to be prepared,
execute and deliver on behalf of the Trust all such documents, reports,
filings, instruments, certificates and opinions as it shall be the duty of the
Trust or Owner Trustee to prepare, file or deliver pursuant to the Basic
Documents, the Series Supplement or any Related Documents.  Upon written request, the Owner Trustee shall
execute and deliver to the Master Servicer a limited power of attorney
appointing the Master Servicer the Trust’s agent and attorney-in-fact to prepare,
or cause to be prepared, execute and deliver all such documents, reports,
filings, instruments, certificates and opinions

 

33

 

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

 

	
   

  	
  U.S. BANK TRUST
  NATIONAL 

  ASSOCIATION,

  
	
   

  	
  as Owner Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Patricia M. Child

  
	
   

  	
   

  	
  Name: Patricia
  M. Child

  
	
   

  	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  HSBC AUTO
  RECEIVABLES 

  CORPORATION,

  
	
   

  	
  as Depositor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   /s/ Steven H. Smith

  
	
   

  	
  By:

  	
  Name: Steven H.
  Smith

  
	
   

  	
   

  	
  Title: Vice
  President & Assistant Treasurer

  
	
   

  	
   

  	
   

  
	
  Acknowledged and
  Agreed:

  	
   

  	
   

  
	
  HSBC FINANCE
  CORPORATION,

  	
   

  	
   

  
	
  as Master Servicer

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   /s/ Edgar D. Ancona

  	
   

  	
   

  	
   

  
	
   

  	
  Name: Edgar D. Ancona

  	
   

  	
   

  
	
   

  	
  Title: Senior Vice
  President - Treasurer

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  HSBC BANK USA, NATIONAL
  ASSOCIATION,

  	
   

  	
   

  
	
  not in its individual
  capacity

  	
   

  	
   

  
	
  but solely as
  Certificate Paying Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   /s/ Susie Moy

  	
   

  	
   

  	
   

  
	
   

  	
  Name: Susie Moy

  	
   

  	
   

  
	
   

  	
  Title: Vice President

  	
   

  	
   

  
						

 

[Signature
Page for Amended and Restated Trust Agreement]

 

 

EXHIBIT A

 

[FORM OF
CERTIFICATE]

 

NUMBER

 

HSBC AUTOMOTIVE
TRUST 2005-1

CERTIFICATE

 

SEE REVERSE FOR
CERTAIN DEFINITIONS

 

THIS CERTIFICATE HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR THE SECURITIES LAWS OF ANY STATE IN RELIANCE UPON EXEMPTIONS PROVIDED BY THE
SECURITIES ACT AND SUCH STATE SECURITIES LAWS. 
NO RESALE OR OTHER TRANSFER OF THIS CERTIFICATE MAY BE MADE UNLESS
SUCH RESALE OR TRANSFER (A) IS MADE IN ACCORDANCE WITH SECTION 3.4 OF
THE AMENDED AND RESTATED TRUST AGREEMENT PERTAINING TO THE HSBC AUTOMOTIVE
TRUST 2005-1 (THE “AGREEMENT”) AND (B) IS MADE (i) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (ii) IN A
TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
APPLICABLE STATE SECURITIES LAWS, (iii) TO THE SELLER OR (iv) TO A
PERSON WHO THE TRANSFEROR REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL
BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT THAT IS AWARE
THAT THE RESALE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A AND
(C) UPON THE SATISFACTION OF CERTAIN OTHER REQUIREMENTS SPECIFIED IN THE
AGREEMENT.  NEITHER THE
DEPOSITOR, THE MASTER SERVICER, THE TRUST NOR THE OWNER TRUSTEE IS
OBLIGATED TO REGISTER THE CERTIFICATES UNDER THE SECURITIES ACT OR ANY
APPLICABLE STATE SECURITIES LAWS.

 

CERTIFICATE

 

evidencing
a beneficial ownership interest in the assets of the Trust relating to the
Series Trust Estate, which includes a pool of motor vehicle retail
installment sale contracts sold to the Trust by HSBC Auto Receivables
Corporation.

 

(This Certificate does not represent an interest in or
obligation of HSBC Auto Receivables Corporation or any of its Affiliates,
except to the extent described below.)

 

THIS CERTIFIES THAT HSBC Auto Receivables Corporation
is the registered owner of a fully-paid and, to the fullest extent permitted by
applicable law, nonassessable beneficial ownership interest representing a 100%
Percentage Interest in the assets of HSBC Automotive Trust 2005-1 (the “Trust”)
formed by HSBC Auto 

 

A-1

 

Receivables
Corporation, a Nevada corporation (the “Depositor”) and the Series Trust
Estate.

 

OWNER TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

This is one of the
Certificates referred to in the within-mentioned Agreement.

 

U.S. BANK TRUST NATIONAL
ASSOCIATION,

not
in its individual

capacity
but solely as

Owner Trustee

 

	
  by 

  	
  Authenticating
  Agent

  
	
  by

  	
   

  

 

HSBC Automotive Trust 2005-1 (the “Trust”), was
created pursuant to a Trust Agreement, dated as of June 13, 2005 (the “Agreement”),
between the Depositor and U.S. Bank Trust National Association, as owner
trustee (the “Owner Trustee”), as amended and restated as of June 22, 2005
and as supplemented by a Series Supplement dated as of June 22, 2005
(the “Series Supplement”).  A
summary of certain of the pertinent provisions of the Agreement and
Series Supplement is set forth below. 
To the extent not otherwise defined herein, the capitalized terms used
herein have the meanings assigned to them in the Agreement and the
Series Supplement.

 

This certificate is one of the duly authorized
certificates of Trust of HSBC Automotive Trust 2005-1 designated as
Certificates.

 

This Certificate is issued under and is subject to the
terms, provisions and conditions of the Agreement and the
Series Supplement, to which Agreement the holder of this Certificate by
virtue of the acceptance hereof assents and by which such holder is bound.  The property of the Trust consists of the
Series Trust Estate which includes a pool of motor vehicle retail
installment sale contracts (the “Receivables”), all monies due thereunder on or
after specified Cut-off Dates, security interests in the vehicles financed
thereby, certain bank accounts and the proceeds thereof, proceeds from claims
on certain insurance policies and certain other rights under the Agreement and
the Master Sale and Servicing Agreement and each related Transfer Agreement,
all right, to and interest of, the Depositor in and to (i) the Master
Receivables Purchase Agreement dated as of December 18, 2001 between HSBC
Auto Finance Inc.(“HAFI”) (formerly Household Automotive Finance Corporation)
and the Depositor, as such agreement may be amended or supplemented from time
to time, (ii) the Master Receivables Purchase Agreement dated as of
November 18, 2002 between HAFI and the Depositor, as such agreement may be
amended or supplemented from time to time, (iii) the Master Receivables
Purchase Agreement dated as of June 24, 2002 between HSBC Auto Credit Inc.
(“HACI”) (formerly Household Automotive Credit Corporation) and the Depositor,
as such agreement may be amended or supplemented from time to time, and
(iv) the Master 

 

A-2

 

Receivables Purchase
Agreement dated as of August 8, 2002, between HACI and the Depositor, as
such agreement may be amended or supplemented from time to time.

 

The Notes have been issued pursuant to an Indenture
dated as of June 22, 2005 (the “Indenture”), among the Trust, HSBC Bank
USA, National Association, as Administrator and Wells Fargo Bank, National
Association, as Indenture Trustee and the Series Supplement.

 

Under the Series Supplement, there will be
distributed on the 17th day of each month or, if such 17th day is not a
Business Day, the next Business Day (the “Distribution Date”), commencing on
July 18, 2005, to the Person in whose name this Certificate is registered
at the close of business on the Business Day preceding such Distribution Date
(the “Record Date”) such Certificateholder’s fractional undivided interest in
any amount to be distributed to Certificateholders on such Distribution Date.

 

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

 

Distributions on this Certificate will be made as
provided in the Agreement by the Owner Trustee by wire transfer or check mailed
to the Certificateholder of record in the Certificate Register without the
presentation or surrender of this Certificate or the making of any notation
hereon.  Except as otherwise provided in
the Agreement and notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Owner Trustee of the pendency
of such distribution and only upon presentation and surrender of this
Certificate at the office or agency maintained for the purpose by the Owner
Trustee in the Corporate Trust Office.

 

Reference is hereby made to the further provisions of
this Certificate set forth on the reverse hereof, which further provisions
shall for all purposes have the same effect as if set forth at this place.

 

Unless the certificate of authentication hereon shall
have been executed by an authorized officer of the Owner Trustee, by manual
signature, this Certificate shall not entitle the holder hereof to any benefit
under the Agreement or the Master Sale and Servicing Agreement or be valid for
any purpose.

 

THIS CERTIFICATE SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE
TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF
THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

A-3

 

IN WITNESS WHEREOF, the Owner Trustee, on behalf of
the Trust and not in its individual capacity, has caused this Certificate to be
duly executed.

 

	
   

  	
   

  	
  HSBC AUTOMOTIVE TRUST
  2005-1

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:  U.S. BANK TRUST NATIONAL 

  ASSOCIATION,

  
	
   

  	
   

  	
  not in its individual
  capacity but solely as 

  Owner Trustee

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

A-4

 

(Reverse of
Certificate)

 

The Certificates do not represent an obligation of, or
an interest in, the Depositor, the Master Servicer, the Owner Trustee or any
Affiliates of any of them and no recourse may be had against such parties or
their assets, except as may be expressly set forth or contemplated herein or in
the Agreement, the Indenture, the Basic Documents or any Related Documents.  In addition, this Certificate is not
guaranteed by any governmental agency or instrumentality and is limited in
right of payment to certain collections with respect to the Receivables, as
more specifically set forth herein and in the Master Sale and Servicing Agreement.  A copy of each of the Master Sale and
Servicing Agreement, the Agreement and the Series Supplement may be
examined during normal business hours at the principal office of the Depositor,
and at such other places, if any, designated by the Depositor, by any
Certificateholder upon written request.

 

As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies of the Certificate Registrar maintained
by the Owner Trustee in the Corporate Trust Office, accompanied by a written
instrument of transfer in form satisfactory to the Owner Trustee and the
Certificate Registrar duly executed by the holder hereof or such holder’s
attorney duly authorized in writing, and thereupon one or more new Certificates
in authorized denominations evidencing the same aggregate interest in the Trust
will be issued to the designated transferee. 
The initial Certificate Registrar appointed under the Agreement is the
Owner Trustee.

 

The Certificates are issuable as registered
Certificates in any Percentage Interest not to exceed 100%.  As provided in the Agreement and subject to
certain limitations therein set forth, Certificates are exchangeable for new
Certificates in authorized denominations evidencing the same aggregate
Percentage Interest, as requested by the holder surrendering the same.  No service charge will be made for any such
registration of transfer or exchange, but the Owner Trustee or the Certificate
Registrar may require payment of a sum sufficient to cover any tax or
governmental charge payable in connection therewith.

 

The Owner Trustee and the Certificate Registrar and
any agent of the Owner Trustee or the Certificate Registrar may treat the
person in whose name this Certificate is registered as the owner hereof for all
purposes, and none of the Owner Trustee, the Certificate
Registrar nor any such agent shall be affected by any notice to the
contrary.

 

The Certificates may not be acquired by or for the
account of (a) an employee benefit plan (as defined in § 3(3) of
ERISA) that is subject to the provisions of Title I of ERISA, (b) a plan
(as defined in § 4975(e) (1) of the Code) that is subject to
§ 4975 of the Code or (c) any entity whose underlying assets include
plan assets by reason of such plan’s investment in the entity (each, a “Benefit
Plan”).  The Certificate Registrar shall
not register the transfer of a Certificate unless the transferee has delivered
to the Owner Trustee a representation letter in form and substance satisfactory
to the 

 

A-5

 

Owner Trustee to
the effect that the transferee is not, and is not acquiring the Certificate for
the account of, a Benefit Plan.

 

The recitals contained herein shall be taken as the
statements of the Depositor or the Master Servicer, as the case may be, and the
Owner Trustee assumes no responsibility for the correctness thereof.  The Owner Trustee makes no representations as
to the validity or sufficiency of this Certificate or of any Receivable
or related document.

 

Unless the certificate of authentication hereon shall
have been executed by an authorized officer of the Owner Trustee, by manual or
facsimile signature, this Certificate shall not entitle the holder hereof to
any benefit under the Agreement or the Master Sale and Servicing Agreement or
be valid for any purpose.

 

A-6

 

ASSIGNMENT

 

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

PLEASE INSERT SOCIAL
SECURITY

OR OTHER IDENTIFYING
NUMBER

OF ASSIGNEE

 

	
   

  
	
  (Please print or type
  name and address, including postal zip code, of assignee)

  
	
   

  
	
   

  
	
  the within Certificate,
  and all rights thereunder, hereby irrevocably constituting and appointing

  
	
   

  
	
   

  	
  Attorney to transfer
  said Certificate on the books of the Certificate Registrar, with full power
  of substitution 

  
	
  in
  the premises.

  
	
   

  
	
  Dated:

  
	
   

  
	
   

  
	
   

  	
   

  	
   *

  
	
   

  	
  Signature Guaranteed:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   *

  
				

 

*              NOTICE:  The
signature to this assignment must correspond with the name of the registered
owner as it appears on the face of the within Certificate in every particular,
without alteration, enlargement or any change whatever.  Such signature must be guaranteed by an “eligible
guarantor institution” meeting the requirements of the Certificate Registrar,
which requirements include membership or participation in STAMP or such other “signature
guarantee program” as may be determined by the Certificate Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

 

A-7

 

EXHIBIT B

 

[FORM OF
CERTIFICATE OF TRUST]

 

CERTIFICATE
OF TRUST

OF

HSBC
AUTOMOTIVE TRUST 2005-1

 

THIS Certificate of Trust of HSBC Automotive Trust
2005-1 (the “Trust”) is being duly executed and filed on behalf of the Trust by
the undersigned, as trustee, to form a statutory trust under the Delaware
Statutory Trust Act (12 Del. C. § 3801 et seq.) (the “Act”).

 

1.             Name.  The name of the statutory trust formed by
this Certificate of Trust is HSBC Automotive Trust 2005-1.

 

2.             Delaware
Trustee.  The name and business
address of the trustee of the Trust in the State of Delaware are U.S. Bank
Trust National Association, 300 Delaware Avenue, 8th Floor, Wilmington, Delaware
19801.

 

3.             Effective
Date.  This Certificate of Trust
shall be effective upon filing.

 

IN WITNESS WHEREOF,
the undersigned have duly executed this Certificate of Trust in accordance with
Section 3811(a)(1) of the Act.

 

	
   

  	
  U.S. BANK TRUST
  NATIONAL 

  ASSOCIATION,

  
	
   

  	
  not in its individual
  capacity but solely as 

  Owner Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

B-1

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