Document:

EXHIBIT 4.2

USAA Acceptance, LLC

Seller,

USAA Federal Savings Bank

Servicer

and

Trustee

on behalf of the Holders

FORM OF POOLING AND SERVICING AGREEMENT

Dated as of ________ __, 20__

USAA AUTO OWNER TRUST
20[  ]-[  ]

____% Asset Backed Certificates, Class A

____% Asset Backed Certificates, Class B

TABLE OF
CONTENTS

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE I

 	
 DEFINITIONS

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 1.1

 	
 Definitions

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 1.2

 	
 Other
 Interpretative Provisions

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 1.3

 	
 Calculations

 	
  

 	
 19

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 1.4

 	
 References

 	
  

 	
 19

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 1.5

 	
 Action by or
 Consent of Holders

 	
  

 	
 19

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE II

 	
 THE TRUST
 PROPERTY

 	
  

 	
 19

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 2.1

 	
 Conveyance
 of Trust Property

 	
  

 	
 19

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 2.2

 	
 Representations
 and Warranties as to Each Receivable

 	
  

 	
 19

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 2.3

 	
 Representations
 and Warranties as to the Receivables in the Aggregate

 	
  

 	
 22

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 2.4

 	
 Repurchase
 upon Breach

 	
  

 	
 23

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 2.5

 	
 Custodian of
 Receivable Files

 	
  

 	
 23

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE III

 	
 ADMINISTRATION
 AND SERVICING OF TRUST PROPERTY

 	
  

 	
 26

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 3.1

 	
 Duties of
 Servicer

 	
  

 	
 26

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 3.2

 	
 Collection
 of Receivable Payments

 	
  

 	
 27

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 3.3

 	
 Realization
 upon Receivables

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 3.4

 	
 Physical
 Damage Insurance

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 3.5

 	
 Maintenance
 of Security Interests in Financed Vehicles

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 3.6

 	
 Covenants of
 Servicer

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 3.7

 	
 Purchase by
 Servicer upon Breach

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 3.8

 	
 Servicing
 Compensation

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 3.9

 	
 Servicer’s
 Report

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 3.10

 	
 Annual
 Statement as to Compliance

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 3.11

 	
 Annual
 Registered Public Accounting Firm Attestation Report

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 3.12

 	
 Access to
 Certain Documentation and Information Regarding Receivables

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 3.13

 	
 Reports to
 the Commission

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 3.14

 	
 Reports to
 the Rating Agency

 	
  

 	
 32

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 3.15

 	
 Servicer
 Expenses

 	
  

 	
 32

 

-i-

TABLE OF
CONTENTS

(continued)

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE IV

 	
 DISTRIBUTIONS;
 RESERVE ACCOUNT; STATEMENTS TO HOLDERS

 	
  

 	
 32

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 4.1

 	
 Establishment
 of Accounts

 	
  

 	
 32

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 4.2

 	
 Collections

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 4.3

 	
 [RESERVED]

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 4.4

 	
 Additional
 Deposits; Net Deposits

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 4.5

 	
 Distributions

 	
  

 	
 35

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 4.6

 	
 Reserve
 Account

 	
  

 	
 37

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 4.7

 	
 Statements
 to Holders

 	
  

 	
 38

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE V

 	
 THE
 CERTIFICATES

 	
  

 	
 40

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 5.1

 	
 The
 Certificates

 	
  

 	
 40

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 5.2

 	
 Authentication
 of Certificates

 	
  

 	
 40

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 5.3

 	
 Registration
 of Transfer and Exchange of Certificates

 	
  

 	
 40

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 5.4

 	
 Mutilated,
 Destroyed, Lost or Stolen Certificates

 	
  

 	
 41

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 5.5

 	
 Persons
 Deemed Owners

 	
  

 	
 41

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 5.6

 	
 Access to
 List of Holders’ Names and Addresses

 	
  

 	
 41

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 5.7

 	
 Maintenance
 of Office or Agency

 	
  

 	
 42

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 5.8

 	
 Book Entry
 Certificates

 	
  

 	
 42

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 5.9

 	
 Notices to
 Clearing Agency

 	
  

 	
 43

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 5.10

 	
 Definitive
 Certificates

 	
  

 	
 43

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VI

 	
 SELLER

 	
  

 	
 43

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 6.1

 	
 Representations
 and Warranties of Seller

 	
  

 	
 43

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 6.2

 	
 Merger or
 Consolidation of, or Assumption of the Obligations of, Seller

 	
  

 	
 45

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 6.3

 	
 Limitation
 on Liability of Seller and Others

 	
  

 	
 45

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VII

 	
 SERVICER

 	
  

 	
 46

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 7.1

 	
 Representations
 and Warranties of Servicer

 	
  

 	
 46

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 7.2

 	
 Indemnities
 of Servicer

 	
  

 	
 47

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 7.3

 	
 Merger or
 Consolidation of or Assumption of the Obligations of Servicer

 	
  

 	
 48

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 7.4

 	
 Limitation
 on Liability of Servicer and Others

 	
  

 	
 48

 

-ii-

TABLE OF CONTENTS
(continued)

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 7.5

 	
 Bank Not To
 Resign as Servicer

 	
  

 	
 49

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 7.6

 	
 Servicer May
 Own Certificates

 	
  

 	
 49

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 7.7

 	
 Existence

 	
  

 	
 49

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VIII

 	
 SERVICING
 TERMINATION

 	
  

 	
 49

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 8.1

 	
 Servicer
 Termination Events

 	
  

 	
 49

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 8.2

 	
 Trustee to
 Act; Appointment of Successor Servicer

 	
  

 	
 51

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 8.3

 	
 Effect of
 Servicing Transfer

 	
  

 	
 52

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 8.4

 	
 Notification
 to Holders

 	
  

 	
 53

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 8.5

 	
 Waiver of
 Past Servicer Termination Events

 	
  

 	
 53

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 8.6

 	
 Transfer of
 Accounts

 	
  

 	
 53

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE IX

 	
 TRUSTEE

 	
  

 	
 53

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 9.1

 	
 Acceptance
 by Trustee

 	
  

 	
 53

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 9.2

 	
 Duties of
 Trustee

 	
  

 	
 53

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 9.3

 	
 Trustee’s
 Certificate

 	
  

 	
 55

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 9.4

 	
 Trustee’s
 Assignment of Purchased Receivables

 	
  

 	
 55

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 9.5

 	
 Certain
 Matters Affecting Trustee

 	
  

 	
 55

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 9.6

 	
 Trustee Not
 Liable for Certificates or Receivables

 	
  

 	
 57

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 9.7

 	
 Trustee May
 Own Certificates

 	
  

 	
 58

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 9.8

 	
 Trustee’s Fees
 and Expenses

 	
  

 	
 58

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 9.9

 	
 Eligibility
 Requirements for Trustee

 	
  

 	
 59

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 9.10

 	
 Resignation
 or Removal of Trustee

 	
  

 	
 59

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 9.11

 	
 Successor
 Trustee

 	
  

 	
 60

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 9.12

 	
 Merger or
 Consolidation of or Assumption of Obligations of Trustee

 	
  

 	
 60

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 9.13

 	
 Appointment
 of Co-Trustee or Separate Trustee

 	
  

 	
 60

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 9.14

 	
 Representations
 and Warranties of Trustee

 	
  

 	
 62

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 9.15

 	
 Reports by
 Trustee

 	
  

 	
 63

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 9.16

 	
 Tax Returns

 	
  

 	
 63

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 9.17

 	
 Trustee May
 Enforce Claims Without Possession of Certificates

 	
  

 	
 63

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE X

 	
 TERMINATION

 	
  

 	
 63

 

-iii-

TABLE OF CONTENTS
(continued)

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 10.1

 	
 Termination
 of the Trust

 	
  

 	
 63

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 10.2

 	
 Optional
 Purchase of All Receivables

 	
  

 	
 64

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XI

 	
 MISCELLANEOUS
 PROVISIONS

 	
  

 	
 64

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 11.1

 	
 Amendment

 	
  

 	
 64

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 11.2

 	
 Protection
 of Title to Trust Property

 	
  

 	
 66

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 11.3

 	
 Limitation
 on Rights of Holders

 	
  

 	
 67

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 11.4

 	
 Governing
 Law

 	
  

 	
 68

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 11.5

 	
 Notices

 	
  

 	
 68

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 11.6

 	
 Severability
 of Provisions

 	
  

 	
 69

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 11.7

 	
 Assignment

 	
  

 	
 69

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 11.8

 	
 Certificates
 Nonassessable and Fully Paid

 	
  

 	
 69

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section 11.9

 	
 Intention of
 Parties

 	
  

 	
 69

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section
 11.10

 	
 Counterparts

 	
  

 	
 69

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section
 11.11

 	
 Further
 Assurances

 	
  

 	
 69

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section
 11.12

 	
 No Waiver;
 Cumulative Remedies

 	
  

 	
 70

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section
 11.13

 	
 Regulation
 AB

 	
  

 	
 70

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section
 11.14

 	
 Information
 to Be Provided by Trustee

 	
  

 	
 70

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section
 11.15

 	
 Form 8-K
 Filings

 	
  

 	
 71

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section
 11.16

 	
 Indemnification

 	
  

 	
 71

 

-iv-

	
  

 	
  

 	
  

 	
  

 
	
 SCHEDULE

 
	
  

 	
  

 	
  

 	
  

 
	
 SCHEDULE A

 	
 LOCATION OF
 RECEIVABLE FILES

 	
  

 	
 S-1

 
	
  

 	
  

 	
  

 	
  

 
	
 EXHIBITS

 
	
  

 	
  

 	
  

 	
  

 
	
 EXHIBIT A

 	
 FORM OF
 CLASS A CERTIFICATE

 	
  

 	
 A-1

 
	
 EXHIBIT B

 	
 FORM OF
 CLASS B CERTIFICATE

 	
  

 	
 B-1

 
	
 EXHIBIT C

 	
 FORM OF
 SERVICER’S REPORT

 	
  

 	
 C-1

 
	
 EXHIBIT D

 	
 SERVICING
 CRITERIA

 	
  

 	
 D-1

 
	
 EXHIBIT E

 	
 FORM OF
 TRUSTEE’S ANNUAL CERTIFICATION

 	
  

 	
 E-1

 
	
 EXHIBIT F

 	
 FORM OF
 TRUSTEE’S ANNUAL CERTIFICATION REGARDING ITEM 1117 AND ITEM 1119 OF
 REGULATION AB

 	
  

 	
 F-1

 

                    POOLING
AND SERVICING AGREEMENT dated as of ____________, 20__, between USAA
Acceptance, LLC, a Delaware limited liability company, as Seller, USAA Federal
Savings Bank (“Bank”), a federally chartered savings association, as
Servicer, and __________, a ______________________, as trustee hereunder.

                    In
consideration of the premises and of the mutual agreements herein contained,
and other good and valuable consideration, the receipt of which is
acknowledged, the parties hereto, intending to be legally bound, agree as
follows:

ARTICLE I

DEFINITIONS

                    Section
1.1 Definitions. Whenever used
in this Agreement, the following capitalized words and phrases, unless the
context otherwise requires, have the following meanings:

                    “Accounts”
means collectively the Collection Account, the Class A Distribution Account,
the Class B Distribution Account and the Payahead Account.

                    “Account
Property” means all amounts and investments held from time to time in any
Account or the Reserve Account, as the case may be (whether in the form of
deposit accounts, instruments, certificated securities, book entry securities,
uncertificated securities or otherwise), and all proceeds of the foregoing.

                    “Actuarial
Receivable” means a Receivable that provides for (i) amortization of the
loan over a series of fixed level payment monthly installments and (ii) each
monthly installment, including the monthly installment representing the final
payment on the Receivable, to consist of an amount of interest equal to 1/12 of
the Contract Rate of the loan multiplied by the unpaid principal balance of the
loan, and an amount of principal equal to the remainder of the monthly
installment.

                    “Acquired
Receivable” means a Receivable acquired by Transferor through a bulk
purchase of Receivables or the acquisition of a financial institution that
owned the Receivable.

                    “Additional
Servicing” means, for each Distribution Date, an amount equal to the lesser
of (i) the amount by which (A) the aggregate amount of the Servicing Fee for
such Distribution Date and all prior Distribution Dates exceeds (B) the
aggregate amount of Additional Servicing paid to Servicer on all prior Distribution
Dates and (ii) the amount, if any, by which (A) the sum of Available Interest
and Available Principal for such Distribution Date exceed (B) the sum, without
duplication of (x) the Servicing Fee paid on such Distribution Date with
respect to the related Collection Period and any accrued and unpaid Servicing
Fee for prior Collection Periods, (y) all amounts required to be distributed to
the Holders on such Distribution Date and (z) the amount, if any, deposited in
the Reserve Account on such Distribution Date.

                    “Administration
Agreement” means the Administration Agreement dated as of _______, 20__ by
and among the Trust, the Administrator and the Indenture Trustee as amended,
restated and otherwise modified from time to time

                    “Administrator”
means Bank in its capacity as administrator of the Trust under the
Administration Agreement, and any successor thereto.

                    “Affiliate”
means, with respect to any specified Person, any other Person controlling,
controlled by or under common control with such specified Person. For the purposes of this definition,
“control” when used with respect to any specified Person means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms “controlling” and “controlled” have meanings correlative to the
foregoing. A Person shall not be deemed
to be an Affiliate of any specified Person solely because such other Person has
the contractual right or obligation to manage such specified Person or act as
servicer with respect to the financial assets of such specified Person unless
such other Person controls the specified Person through equity ownership or otherwise.

                    “Agreement”
means this Pooling and Servicing Agreement, including its schedules and
exhibits, as amended, modified or supplemented from time to time.

                    “Authorized
Officer” means any officer within the Corporate Trust Office of Trustee,
including any vice president, assistant vice president, secretary, assistant
secretary or any other officer of Trustee customarily performing functions
similar to those performed by any of the above designated officers and also,
with respect to a particular matter, any other officer to whom such matter is
referred because of such officer’s knowledge of and familiarity with the
particular subject.

                    “Available
Interest” means, for any Distribution Date, the sum of the following
amounts for the related Collection Period: (a) that portion of the Collections
on the Receivables received during the such Collection Period that is allocable
to interest in accordance with Servicer’s customary servicing procedures, (b) all
Liquidation Proceeds received during the related Collection Period and (c) the
Purchase Amounts, to the extent allocable to accrued interest, of all
Receivables that are purchased by Servicer as of the last day of the related
Collection Period. “Available Interest”
for any Distribution Date shall exclude all payments and proceeds of any
Receivables the Purchase Amount of which has been distributed on a prior
Distribution Date.

                    “Available
Principal” means, for any Distribution Date the sum of the following
amounts with respect to the related Collection Period: (a) that portion of all Collections on the
Receivables received during such Collection Period that is allocable to
principal in accordance with Servicer’s customary servicing procedures; and (b)
the Purchase Amounts, to the extent attributable to principal, of all
Receivables purchased by Servicer as of the last day of the related Collection
Period. “Available Principal” on any
Distribution Date shall exclude all payments and proceeds of any Receivables
the Purchase Amount of which has been distributed on a prior Distribution Date.

                    “Available
Reserve Amount” is defined in Section 4.6.

2

                    “Book
Entry Certificate” means beneficial interests in the definitive
Certificates described in Section 5.8, the ownership of which shall be
evidenced, and transfers of which shall be made, through book entries by a
Clearing Agency as described in Section 5.8.

                    “Business
Day” means a day that is not a Saturday or a Sunday and that in the States
of New York, Illinois, Texas and the State in which the Corporate Trust Office
is located is neither a legal holiday nor a day on which banking institutions
are authorized by law, regulation or executive order to be closed.

                    “Certificate”
means any Class A Certificate or Class B Certificate.

                    “Certificate
Owner” means, with respect to a Book Entry Certificate, the Person who is
the owner of such Book Entry Certificate, as reflected on the books of the
Clearing Agency, or on the books of a Person maintaining an account with such
Clearing Agency (directly or as an indirect participant, in accordance with the
rules, regulations and procedures of such Clearing Agency).

                    “Certificate
Register” means the register maintained by Trustee for the registration of
Certificates and of transfers and exchanges of Certificates as provided in Section
5.3.

                    “Class
A Certificate” means a certificate executed by Trustee on behalf of the
Trust and authenticated by Trustee substantially in the form of Exhibit A.

                    “Class
A Certificate Balance” means, at any time, the original Class A Certificate
Balance, as reduced by all amounts allocable to principal on the Class A
Certificates distributed to Class A Holders prior to such time.

                    “Class
A Certificate Rate” means ____% per annum, calculated on the basis of a
360-day year consisting of twelve 30-day months.

                    “Class
A Distribution Account” means the account established, maintained and
designated as the “Class A Distribution Account” pursuant to Section 4.1.

                    “Class
A Holder” means the Person in whose name a Class A Certificate is registered
in the Certificate Register, except that, solely for the purpose of giving any
consent, request or waiver pursuant to this Agreement, the interest evidenced
by any Class A Certificate registered in the name of the Transferor, Servicer,
or any Person actually known to an Authorized Officer of Trustee to be an
Affiliate, the Transferor, or Servicer, shall not be taken into account in
determining whether the requisite percentage necessary to effect any such
consent, request or waiver shall have been obtained.

                    “Class
A Interest Carryover Shortfall” means, (a) with respect to the initial
Distribution Date, zero, and (b) with respect to any other Distribution Date,
the excess of Class A Monthly Interest for the preceding Distribution Date and
any outstanding Class A Interest Carryover Shortfall on such preceding
Distribution Date, over the amount in respect of interest that is actually
deposited in the Class A Distribution Account on such preceding Distribution
Date, plus 30 days of interest on such excess, to the extent permitted by law,
in an amount equal

3

to the product of one-twelfth multiplied by the Class A Certificate
Rate multiplied by the amount of such excess.

                    “Class
A Interest Distributable Amount” means, with respect to any Distribution
Date, the sum of (a) the Class A Monthly Interest for such Distribution Date
and (b) the Class A Interest Carryover Shortfall for such Distribution Date.

                    “Class
A Monthly Interest” means, for any Distribution Date, an amount equal to
one-twelfth (or the actual number of days from and including the Closing Date
to but excluding _____________, 20__ divided by 360, for the initial
Distribution Date) of the Class A Certificate Rate multiplied by the Class A
Certificate Balance as of the close of business on the immediately preceding
Distribution Date, after giving effect to all payments of principal to the
Class A Certificates on or prior to such Distribution Date (or, in the case of
the first Distribution Date, the Original Class A Certificate Balance).

                    “Class
A Monthly Principal” means, with respect to any Distribution Date, the
Class A Percentage of Available Principal for such Distribution Date plus the
Class A Percentage of Realized Losses with respect to the related Collection
Period.

                    “Class
A Percentage” means _____%.

                    “Class
A Pool Factor” means, with respect to any Distribution Date, the Class A
Certificate Balance as of the close of business on such Distribution Date
(after giving effect to any payments to be made on such Distribution Date)
divided by the Original Class A Certificate Balance, expressed as a seven-digit
decimal.

                    “Class
A Principal Carryover Shortfall” means, as of the close of business on any
Distribution Date, the excess of Class A Monthly Principal for such
Distribution Date and any outstanding Class A Principal Carryover Shortfall
from the preceding Distribution Date over the amount in respect of principal
that is actually deposited in the Class A Distribution Account on such
Distribution Date.

                    “Class
A Principal Distributable Amount” means, with respect to any Distribution
Date, the sum of Class A Monthly Principal for such Distribution Date and, in
the case of any Distribution Date other than the initial Distribution Date, the
Class A Principal Carryover Shortfall as of the close of business on the
preceding Distribution Date; provided that the Class A Principal
Distributable Amount shall not exceed the Class A Certificate Balance prior to
such Distribution Date. In addition, on
the Final Scheduled Distribution Date, the Class A Principal Distributable
Amount shall include, to the extent not included under the preceding sentence,
the amount that is necessary (after giving effect to the other amounts to be
deposited in the Class A Distribution Account on such Distribution Date and
allocable to principal) to reduce the Class A Certificate Balance to zero.

                    “Class
B Certificate” means a certificate executed by Trustee on behalf of the
Trust and authenticated by Trustee substantially in the form of Exhibit B.

4

                    “Class
B Certificate Balance” means, at any time, the Original Class B Certificate
Balance, as reduced by all amounts allocable to principal on the Class B
Certificates distributed to Class B Holders prior to such time.

                    “Class
B Certificate Owner” means, with respect to a Book Entry Certificate
representing a beneficial interest in the Class B Certificates, the Person who
is the owner of such Book Entry Certificate, as reflected on the books of the
Clearing Agency, or on the books of a Person maintaining an account with such
Clearing Agency (directly or as an indirect participant in accordance with the
rules, regulations and procedures of such Clearing Agency).

                    “Class
B Certificate Rate” means ____% per annum, calculated on the basis of a
360-day year consisting of twelve 30-day months.

                    “Class
B Distribution Account” means the account established, maintained and
designated as the “Class B Distribution Account” pursuant to Section 4.1.

                    “Class
B Holder” means the Person in whose name a Class B Certificate is
registered in the Certificate Register, except that, solely for the purpose of
giving any consent, request or waiver pursuant to this Agreement, the interest
evidenced by any Class B Certificate registered in the name of the Transferor,
Servicer, or any Person actually known to an Authorized Officer of Trustee to
be an Affiliate of the Transferor or Servicer, shall not be taken into account
in determining whether the requisite percentage necessary to effect any such
consent, request or waiver shall have been obtained.

                    “Class
B Interest Carryover Shortfall” means, (a) with respect to the initial
Distribution Date, zero, and (b) with respect to any other Distribution Date,
the excess of Class B Monthly Interest for the preceding Distribution Date and
any outstanding Class B Interest Carryover Shortfall on such preceding
Distribution Date, over the amount in respect of interest that is actually
deposited in the Class B Distribution Account on such preceding Distribution
Date, plus 30 days of interest on such excess, to the extent permitted by law,
in an amount equal to the product of one-twelfth multiplied by the Class B
Certificate Rate multiplied by the amount of such excess.

                    “Class
B Interest Distributable Amount” means, with respect to any Distribution
Date, the sum of (a) the Class B Monthly Interest for such Distribution Date
and (b) the Class B Interest Carryover Shortfall for such Distribution Date.

                    “Class
B Monthly Interest” means, for any Distribution Date, an amount equal to
one-twelfth (or the actual number of days from and including the Closing Date
to but excluding __________, 20__ divided by 360, for the initial Distribution
Date) of the Class B Certificate Rate multiplied by the Class B Certificate Balance
as of the close of business on the immediately preceding Distribution Date,
after giving effect to all payments of principal to the Class B Certificates on
or prior to such Distribution Date (or, in the case of the first Distribution
Date, the Certificate Balance on the Closing Date).

                    “Class
B Monthly Principal” means, with respect to any Distribution Date, the
Class B Percentage of Available Principal for such Distribution Date plus the
Class B Percentage of Realized Losses with respect to the related Collection
Period.

5

                    “Class
B Percentage” means __%.

                    “Class
B Pool Factor” means, with respect to any Distribution Date, the Class B
Certificate Balance as of the close of business on such Distribution Date
(after giving effect to any payments to be made on such Distribution Date)
divided by the Original Class B Certificate Balance, expressed as a seven-digit
decimal.

                    “Class
B Principal Carryover Shortfall” means, as of the close of business on any
Distribution Date, the excess of Class B Monthly Principal for such
Distribution Date and any outstanding Class B Principal Carryover Shortfall
from the preceding Distribution Date over the amount in respect of principal
that is actually deposited in the Class B Distribution Account on such
Distribution Date.

                    “Class
B Principal Distributable Amount” means, with respect to any Distribution
Date, the sum of Class B Monthly Principal for such Distribution Date and, in
the case of any Distribution Date other than the initial Distribution Date, the
Class B Principal Carryover Shortfall as of the close of business on the
preceding Distribution Date; provided that the Class B Principal
Distributable Amount shall not exceed the Class B Certificate Balance prior to
such Distribution Date. In addition, on
the Final Scheduled Distribution Date, the Class B Principal Distributable
Amount shall include, to the extent not included under the preceding sentence,
the amount that is necessary (after giving effect to the other amounts to be
deposited in the Class B Distribution Account on such Distribution Date and
allocable to principal) to reduce the Class B Certificate Balance to zero.

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

                    “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 of securities deposited with the Clearing Agency.

                    “Closing
Date” means the date of the initial issuance of the Certificates hereunder.

                    “Code”
means the Internal Revenue Code of 1986, as amended, modified or supplemented
from time to time, and any successor law thereto, and the Treasury Regulations
promulgated thereunder.

                    “Collection
Account” means the segregated account or accounts established, maintained
and designated as the “Collection Account” pursuant to Section 4.1.

                    “Collection
Period” means, (a) in the case of the initial Collection Period, the period
from [but not including] the Cutoff Date to and including ___________ __, 20__
and (b) thereafter, each calendar month during the term of this Pooling and
Servicing Agreement. With respect to any Determination Date, Deposit Date or
Distribution Date, the “related Collection Period” means the Collection Period
preceding the month in which such Determination Date, Deposit Date or
Distribution Date occurs.

6

                    “Collections”
means all collections on the Receivables and any proceeds from Insurance
Policies and lender’s single interest insurance policies.

                    “Commission”
means the Securities and Exchange Commission.

                    “Contract
Rate” means, with respect to a Receivable, the rate per annum of interest
charged on the outstanding principal balance of such Receivable.

                    “Corporate
Trust Office” means the principal office of Trustee at which at any
particular time its corporate trust business shall be administered, which
office at date of execution of this Agreement is located at ____________,
Attention: ______________, Telephone: _______________, Facsimile:
________________ or at such other address as Trustee may designate from time to
time by notice to the Holders, the Transferor, Seller and Servicer, or the
principal corporate trust office of any successor Trustee (the address of which
the successor Trustee will notify the Holders, the Transferor, Seller and
Servicer).

                    “Custodian”
means Servicer in its capacity as agent of the Trustee, as custodian of the
Receivable Files and the Transferor acting as agent for Servicer for the
purpose of maintaining custody of the Receivables Files.

                    “Cutoff
Date” means the [opening] of business on ___________ __, 20___.

                    “Cutoff
Date Principal Balance” means, with respect to any Receivable, the Initial
Principal Balance of such Receivable minus the sum of the portion of all
payments received under such Receivable from or on behalf of the related
Obligor on or prior to the Cutoff Date and allocable to principal in accordance
with the terms of the Receivable.

                    “Dealer”
means, with respect to any Receivable, the seller of the related Financed
Vehicle.

                    “Dealer
Agreement” means an agreement between an Originator and a Dealer pursuant
to which such Originator acquires Motor Vehicle Loans from the Dealer or gives
such Dealer the right to induce persons to apply to such Originator for loans
in connection with the retail sale of Motor Vehicles by such Dealer.

                    “Dealer
Recourse” means, with respect to any Dealer, any rights and remedies
against such Dealer under the related Dealer Agreement (other than with respect
to any breach of representation or warranty thereunder) with respect to credit
losses on a Receivable secured by a Financed Vehicle sold by such Dealer.

                    “Defaulted
Receivable” means, with respect to any Collection Period, a Receivable
(other than a Purchased Receivable) which Servicer has determined to charge off
during such Collection Period in accordance with its customary servicing
practices; provided
that any Receivable which Servicer is obligated to repurchase or purchase shall
be deemed to have become a Defaulted Receivable during a Collection Period if
Servicer fails to deposit the related Purchase Amount on the related Deposit
Date when due.

                    “Definitive
Certificates” is defined in Section 5.8.

7

                    “Delivery”
when used with respect to Account Property means:

	
  

 	
  

 
	
  

 	
           (A) with
 respect to bankers’ acceptances, commercial paper, negotiable certificates of
 deposit and other obligations that constitute “instruments” within the
 meaning of Section 9-102(47) of the UCC and are susceptible of physical
 delivery, transfer thereof to Trustee or its nominee or custodian by physical
 delivery to Trustee or its nominee or custodian endorsed to, or registered in
 the name of, Trustee or its nominee or custodian or endorsed in blank, and,
 with respect to a “certificated security” (as defined in Section 8-102 of the
 UCC) transfer thereof (i) by delivery of such certificated security endorsed
 to, or registered in the name of, Trustee or its nominee or custodian or
 endorsed in blank to a “financial intermediary” (as defined in Section 8-313
 of the UCC) and the making by such financial intermediary of entries on its
 books and records identifying such certificated securities as belonging to
 Trustee or its nominee or custodian and the sending by such financial
 intermediary of a confirmation of the purchase of such certificated security by
 Trustee or its nominee or custodian, or (ii) by delivery thereof to a
 “clearing corporation” (as defined in Section 8-102(3) of the UCC) and the
 making by such clearing corporation of appropriate entries on its books
 reducing the appropriate securities account of the transferor and increasing
 the appropriate securities account of a financial intermediary by the amount
 of such certificated security, the identification by the clearing corporation
 of the certificated securities for the sole and exclusive account of the
 financial intermediary, the maintenance of such certificated securities by
 such clearing corporation or a “custodian bank” (as defined in Section
 8-102(4) of the UCC) or the nominee of either subject to the clearing
 corporation’s exclusive control, the sending of a confirmation by the
 financial intermediary of the purchase by Trustee or its nominee or custodian
 of such securities and the making by such financial intermediary of entries
 on its books and records identifying such certificated securities as
 belonging to Trustee or its nominee or custodian (all of the foregoing,
 “Physical Property”), and, in any event, any such Physical Property in
 registered form shall be in the name of Trustee or its nominee or custodian;
 and such additional or alternative procedures as may hereafter become
 appropriate to effect the complete transfer of ownership of any such Account
 Property to Trustee or its nominee or custodian, consistent with changes in
 applicable law or regulations or the interpretation thereof;

 
	
  

 	
  

 
	
  

 	
           (B) with
 respect to any securities issued by the U.S. Treasury, the Federal Home Loan
 Mortgage Corporation or by the Federal National Mortgage Association that is
 a book-entry security held through the Federal Reserve System pursuant to
 Federal book-entry regulations, the following procedures, all in accordance
 with applicable law, including applicable Federal regulations and Articles 8
 and 9 of the UCC: book-entry registration of such Account Property to an
 appropriate book-entry account maintained with a Federal Reserve Bank by a
 financial intermediary which is also a “depository” pursuant to applicable
 Federal regulations and issuance by such financial intermediary of a deposit
 advice or other written confirmation of such book-entry registration to
 Trustee or its nominee or custodian of the purchase by Trustee or its nominee
 or custodian of 

 

8

	
  

 	
  

 
	
  

 	
 such book-entry securities; the making by such financial intermediary
 of entries in its books and records identifying such book entry security held
 through the Federal Reserve System pursuant to Federal book-entry regulations
 as belonging to Trustee or its nominee or custodian and indicating that such
 custodian holds such Account Property solely as agent for Trustee or its
 nominee or custodian; and such additional or alternative procedures as may
 hereafter become appropriate to effect complete transfer of ownership of any
 such Account Property to Trustee or its nominee or custodian, consistent with
 changes in applicable law or regulations or the interpretation thereof; and

 
	
  

 	
  

 
	
  

 	
           (C) with
 respect to any item of Account Property that is an uncertificated security
 under Article 8 of the UCC and that is not governed by clause (b)
 above, registration on the books and records of the issuer thereof in the
 name of the financial intermediary, the sending of a confirmation by the
 financial intermediary of the purchase by Trustee or its nominee or custodian
 of such uncertificated security, the making by such financial intermediary of
 entries on its books and records identifying such uncertificated certificates
 as belonging to Trustee or its nominee or custodian.

 

                    “Deposit
Date” means, with respect to any Collection Period, the Business Day
preceding the related Distribution Date.

                    “Depository
Agreement” means the agreement among Seller, Servicer, Trustee and the
initial Clearing Agency, dated the Closing Date.

                    “Determination
Date” with respect to any Collection Period, means the tenth day of the
calendar month following such Collection Period (or, if the tenth day is not a
Business Day, the next succeeding Business Day).

                    “Direct
Loan” means motor vehicle promissory notes and security agreements executed
by an Obligor in favor of a motor vehicle lender.

                    “Distribution
Date” means the _____ day of each month (or, if the ___ day is not a
Business Day, the next succeeding Business Day), commencing _______ __, 20__.

                    “Dollar”
and the sign “$” mean lawful money of the United States.

                    “Eligible
Deposit Account” means either (a) a segregated account with an Eligible
Institution or (b) a segregated trust account with the corporate trust
department of a depository institution organized under the laws of the United
States of America or any one of the states thereof or the District of Columbia
(or any domestic branch of a foreign bank), having corporate trust powers and
acting as trustee for funds deposited in such account, so long as the long-term
unsecured debt of such depository institution shall have a credit rating from
each Rating Agency in one of its generic rating categories which signifies
investment grade. Any such accounts
(other than the Reserve Account) may be maintained with ______________, or any
of its Affiliates, if such accounts meet the requirements described in clause
(a) of the preceding sentence.

9

                    “Eligible
Institution” means a depository institution (which may be Servicer or any
Affiliate of Servicer or Trustee) organized under the laws of the United States
of America or any one of the states thereof or the District of Columbia (or any
domestic branch of a foreign bank), which (a) has (i) either a long-term senior
unsecured debt rating of AA or a short-term senior unsecured debt or
certificate of deposit rating of A-1+ or better by S&P and (ii) (A) a
short-term senior unsecured debt rating of A-1 or better by S&P and (B) a
short-term senior unsecured debt rating of P-1 or better by Moody’s, or any
other long-term, short-term or certificate of deposit rating acceptable to the
Rating Agencies and (b) whose deposits are insured by the Federal Deposit
Insurance Corporation. If so qualified, Servicer, any Affiliate of Servicer or
Trustee may be considered an Eligible Institution.

                    
“Eligible Investments” shall mean any one or more of the following types
of investments:

	
  

 	
  

 
	
  

 	
           (A)
 direct obligations of, and obligations fully guaranteed as to timely payment
 by, the United States of America;

 
	
  

 	
  

 
	
  

 	
           (B)
 demand deposits, time deposits or certificates of deposit of any depository
 institution (including any Affiliate of the Transferor, Seller, Trustee or
 any Affiliate of the Trustee) or trust company incorporated under the laws of
 the United States of America or any state thereof or the District of Columbia
 (or any domestic branch of a foreign bank) and subject to supervision and
 examination by Federal or state banking or depository institution authorities
 (including depository receipts issued by any such institution or trust
 company as custodian with respect to any obligation referred to in clause
 (a) above or a portion of such obligation for the benefit of the holders
 of such depository receipts); provided that at the time of the
 investment or contractual commitment to invest therein (which shall be deemed
 to be made again each time funds are reinvested following each Distribution
 Date), the commercial paper or other short-term senior unsecured debt
 obligations (other than such obligations the rating of which is based on the
 credit of a Person other than such depository institution or trust company)
 of such depository institution or trust company shall have a credit rating
 from S&P of A-1+ and from Moody’s of P-1;

 
	
  

 	
  

 
	
  

 	
           (C)
 commercial paper (including commercial paper of any Affiliate of the
 Transferor Seller) having, at the time of the investment or contractual
 commitment to invest therein, a rating from S&P of A-1+ and from Moody’s
 of P-1;

 
	
  

 	
  

 
	
  

 	
           (D)
 investments in money market funds (including funds for which Trustee or any
 of its Affiliates or any of Seller’s or Transferor’s Affiliates is investment
 manager or advisor) having a rating from S&P of AAA-m or AAAm-and from
 Moody’s of Aaa;

 
	
  

 	
  

 
	
  

 	
           (E)
 bankers’ acceptances issued by any depository institution or trust company
 referred to in clause (b) above;

 

10

	
  

 	
  

 
	
  

 	
           (F)
 repurchase obligations with respect to any security that is a direct
 obligation of, or fully guaranteed by, the United States of America or any
 agency or instrumentality thereof the obligations of which are backed by the
 full faith and credit of the United States of America, in either case entered
 into with a depository institution or trust company (acting as principal)
 referred to in clause (b) above; and

 
	
  

 	
  

 
	
  

 	
           (G) any
 other investment with respect to which each Rating Agency has provided
 written notice that such investment would not cause such Rating Agency to
 downgrade or withdraw its then current rating on the Class A Certificates or
 the Class B Certificates.

 

                    “Eligible
Servicer” means a Person which, at the time of its appointment as Servicer,
(a) has a net worth of not less than $50,000,000, (b) is servicing a portfolio
of motor vehicle retail installment sales contracts and/or motor vehicle loans,
(c) is legally qualified, and has the capacity, to service the Receivables, (d)
has demonstrated the ability to service a portfolio of motor vehicle loans
similar to the Receivables professionally and competently in accordance with
standards of skill and care that are consistent with prudent industry
standards, and (e) is qualified and entitled to use pursuant to a license or
other written agreement, and agrees to maintain the confidentiality of, the
software which Servicer uses in connection with performing its duties and
responsibilities under this Agreement or obtains rights to use, or develops at
its own expense, software which is adequate to perform its duties and
responsibilities under this Agreement.

                    “ERISA”
means the Employment Retirement Income Security Act of 1974, as amended.

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

                    “Final
Scheduled Distribution Date” means the _______ __ Distribution Date.

                    “Final
Scheduled Maturity Date” means the last day of the Collection Period
immediately preceding the Collection Period during which the Final Scheduled
Distribution Date falls.

                    “Financed
Vehicle” means, with respect to a Receivable, the Motor Vehicle, together
with all accessories and accessions thereto, securing or purporting to secure
the indebtedness under such Receivable.

                    “GAAP”
is defined in Section 11.1(c).

                    “Holder”
means the Person in whose name a Certificate is registered in the Certificate
Register, except that, solely for the purpose of giving any consent, request or
waiver pursuant to this Agreement, the interest evidenced by any Certificate
registered in the name of the Transferor, Servicer or any Person actually known
to an Authorized Officer of Trustee to be an Affiliate of the Transferor or
Servicer, shall not be taken into account in determining whether the requisite
percentage necessary to effect any such consent, request or waiver shall have
been obtained.

11

                    “Initial
Principal Balance” means, in respect of a Receivable, the amount advanced
under the Receivable toward the purchase price of the Financed Vehicle and
related costs, including accessories, service and warranty contracts, insurance
premiums, other items customarily financed as part of retail motor vehicle
loans and/or retail installment sales contracts and other fees charged by the
Transferor or Dealer and included in the amount to be financed, the total of
which is shown as the initial principal balance in the note and security
agreement or retail installment sale contract evidencing and securing such
Receivable.

                    “Insurance
Policies” means, all credit life and disability insurance policies
maintained by the Obligors and all Physical Damage Insurance Policies.

                    “Item
1117 Disclosure Item” means with respect to any Person, (a) any legal
proceedings pending against such Person or of which any property of such Person
is then subject, or (b) any governmental proceeding known to be contemplated by
governmental authorities against such Person or of which any property of such
Person would be subject, in each case that would be material to the
Certificateholders.

                    “Item
1119 Party” means Seller, Bank, Servicer, Trustee, any underwriter of the
Certificates and any other material transaction party identified by Seller or
Bank to Trustee in writing.

                    “Lien”
means a security interest, lien, charge, pledge, preference, participation
interest or encumbrance of any kind, other than liens for taxes not yet due and
payable, mechanics’ or materialmen’s liens and other liens for work, labor or
materials, and any other liens that may attach by operation of law.

                    “Liquidation
Proceeds” means, with respect to any Receivable which has become a
Defaulted Receivable, (a) insurance proceeds received by Servicer with respect
to the Insurance Policies, (b) amounts received by Servicer in connection with
such Defaulted Receivable pursuant to the exercise of rights under that Receivable
and (c) the monies collected by Servicer (from whatever source, including
proceeds of a sale of a Financed Vehicle or a deficiency balance recovered
after the charge-off of the related Receivable or as a result of any Dealer
Recourse) on such Defaulted Receivable net of any expenses incurred by Servicer
in connection therewith and any payments required by law to be remitted to the
Obligor.

                    “Majority
Holders” means Holders of Certificates evidencing not less than a majority
of the aggregate outstanding principal balance of the Class A Certificates and
the Class B Certificates taken together as a single class.

                    “Minimum
Specified Reserve Balance” with respect to any Distribution Date means the
lesser of (i) $______ and (ii) the aggregate outstanding Class A Certificate
Balance and Class B Certificate Balance (after giving effect to any
distributions on the Certificates on such Distribution Date).

                    [“Moody’s”
means Moody’s Investors Service, Inc., or any successor that is a nationally
recognized statistical rating organization.]

                    “Motor
Vehicle” means a new or used automobile or light duty truck.

12

                    “Motor
Vehicle Loan” means a Direct Loan or retail installment sales contract
secured by a Motor Vehicle originated by the Transferor or another financial
institution.

                    “Obligor”
means, with respect to a Receivable, the borrower or co-borrowers under the
related Receivable and any co-signer of the Receivable or other Person who owes
or may be primarily or secondarily liable for payments under such Receivable.

                    “Officer’s
Certificate” means a certificate signed by the chairman, the president, any
vice president or the treasurer of the Transferor or Servicer, as the case may
be, and delivered to Trustee.

                    “Opinion
of Counsel” means a written opinion of counsel (who may be an employee of
the Transferor or Servicer or any of their Affiliates) reasonably acceptable in
form to Trustee.

                    “Original
Certificate Balance” means the sum of the Original Class A Certificate
Balance and the Original Class B Certificate Balance.

                    “Original
Class A Certificate Balance” means $_________.

                    “Original
Class B Certificate Balance” means $_________.

                    “Original
Pool Balance” means the Pool Balance as of the Cutoff Date.

                    “Originator”
means, with respect to any Direct Loan or retail installment sales contract,
the Transferor that was the lender with respect to such Direct Loan or that
acquired such Direct Loan or retail installment sales contract from a Dealer or
other Person.

                    “Payahead
Account” means the account designated as such, established and maintained
pursuant to Section 4.1.

                    “Payaheads”
means early payments by or on behalf of Obligors on Precomputed Receivables
which, in accordance with Servicer’s customary practices, do not constitute
scheduled payments or full prepayments and are applied to principal and
interest in a subsequent period.

                    “Person”
means a legal person, including any individual, corporation, estate,
partnership, limited liability company, joint venture, association, joint stock
company, trust, unincorporated organization, or government or any agency or
political subdivision thereof, or any other entity of whatever nature.

                    “Physical
Damage Insurance Policy” means a theft and physical damage insurance policy
maintained by the Obligor under a Receivable, providing coverage against loss
or damage to or theft of the related Financed Vehicle.

                    “Pool
Balance” means, at any time, the aggregate Principal Balance of the
Receivables (excluding Defaulted Receivables) at such time.

13

                    “Pool
Factor” means, with respect to any Collection Period, the Pool Balance as
of the last day of such Collection Period divided by the Original Pool Balance,
expressed as a seven-digit decimal.

                    “Precomputed
Receivable” means (i) an Actuarial Receivable, (ii) a Rule of 78’s
Receivable or (iii) a Sum of Periodic Balances Receivable.

                    “Principal
Balance” means, as of any time, for any Receivable, the principal balance
of such Receivable under the terms of the Receivable determined in accordance
with Servicer’s customary practices.

                    “Purchase
Agreement” means each Purchase Agreement dated as of ________ __, 20__ by
and between the Transferor and Seller, as amended, restated or otherwise
modified from time to time.

                    “Purchase
Amount” of any Receivable means, with respect to any Deposit Date, an
amount equal to the sum of (a) the outstanding Principal Balance of such Receivable
as of the last day of the preceding Collection Period and (b) the amount of
accrued and unpaid interest on such Principal Balance at the related Contract
Rate from the date a payment was last made by or on behalf of the Obligor
through and including the last day of such preceding Collection Period, in each
case after giving effect to the receipt of monies collected on such Receivable
in such preceding Collection Period.

                    “Purchased
Receivable” means, at any time, a Motor Vehicle Loan included in the
Schedule of Receivables as to which payment of the Purchase Amount has
previously been made by the Transferor or Servicer pursuant to this Agreement.

                    “Rating
Agencies” means [
                    ].

                    “Rating
Agency Condition” means, with respect to any action, that each Rating
Agency shall have been given 10 days’ prior notice thereof (or such shorter
period as shall be acceptable to the Rating Agencies) and that none of the
Rating Agencies shall have notified the Transferor Seller, Servicer or Trustee
in writing that such action will, in and of itself, result in a reduction or
withdrawal of the then current rating on the Class A Certificates or the Class
B Certificates.

                    “Realized
Losses” means, for any Collection Period, the aggregate Principal Balances
of any Receivables that became Defaulted Receivables during such Collection
Period.

                    “Receivable”
means each Motor Vehicle Loan described in the Schedule of Receivables, but
excluding (i) Defaulted Receivables to the extent the Principal Balances
thereof have been deposited in the Collection Account and (ii) any Purchased
Receivables.

                    “Receivable
File” is defined in Section 2.5.

                    “Record
Date” means, subject to Section 1.4, with respect to any
Distribution Date, the last day of the related Collection Period.

14

                    “Regulation
AB” means Subpart 229.1100 – Asset Backed Securities (Regulation AB), 17
C.F.R. §§229.110-229.1123, as such regulation may be amended from time to time
and subject to such clarification and interpretation as have been provided by
the Commission in the adopting release (Asset-Backed Securities, Securities Act
Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (January 7, 2005)) or by the
staff of the Commission, or as may be provided in writing by the Commission or
its staff from time to time.

                    “Related
Agreements” means the Certificates, the Depository Agreement and the underwriting
agreement between Seller and the underwriter(s) of the Certificates. The
Related Agreements to be executed by any party are referred to herein as “such
party’s Related Agreements”, “its Related Agreements” or by a similar
expression.

                    “Reportable
Event” means any event required to be reported on Form 8-K, and in any
event, the following:

	
  

 	
  

 
	
  

 	
           (A) entry
 into a material definitive agreement related to the Trust or the Certificates
 or an amendment to a Related Agreement, even if Seller is not a party to such
 agreement (e.g., a servicing agreement with a servicer contemplated by Item
 1108(a)(3) of Regulation AB);

 
	
  

 	
  

 
	
  

 	
           (B)
 termination of a Related Agreement (other than by expiration of the agreement
 on its stated termination date or as a result of all parties completing their
 obligations under such agreement), even if Seller is not a party to such
 agreement (e.g., a servicing agreement with a servicer contemplated by Item
 1108(a)(3) of Regulation AB);

 
	
  

 	
  

 
	
  

 	
           (C) with
 respect to Servicer only, the occurrence of a Servicer Termination Event;

 
	
  

 	
  

 
	
  

 	
           (D) the
 resignation, removal, replacement, or substitution of Trustee; and

 
	
  

 	
  

 
	
  

 	
           (E) with
 respect to Trustee only, a required distribution to Holders of the
 Certificates is not made as of the required Distribution Date under this
 Agreement.

 

                    “Required
Rating” means a rating with respect to short term deposit obligations of at
least P-1 by Moody’s and at least A-1 by S&P.

                    “Reserve
Account” means the account established, maintained and designated as the
“Reserve Account” pursuant to Section 4.6.

                    “Reserve
Account Initial Deposit” means cash or Eligible Investments having a value
of at least $____________.

                    “Reserve Account Property” is defined in Section 4.6.

15

                    “Responsible
Officer” means, with respect to the Trustee, any officer within the
corporate trust department of the Trustee, including any vice president,
assistant vice president, assistant secretary, assistant treasurer, trust
officer or any other officer of the Trustee who customarily performs functions
similar to those performed by the persons who at the time shall be such
officers, respectively, or to whom any corporate trust matter is referred
because of such person’s knowledge of and familiarity with the particular
subject and who, in each case, shall have direct responsibility for the
administration of the Agreement.

                    “Rule
of 78’s Receivable” means a Receivable that provides for the payment by the
Obligor of a specified total amount of payments, payable in equal monthly
installments on each due date, which total represents the principal amount
financed and add-on interest in an amount calculated at the stated Contract
Rate for the term of the Receivable and allocated to each monthly payment based
upon a fraction, the numerator of which is the number of payments scheduled to
have been made prior to the due date for such monthly payments on such Receivable
and the denominator of which is the sum of all such numbers of payments to be
made until the maturity of such Receivable.

                    [“S&P”
means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc., or any successor that is a nationally recognized statistical
rating organization.]

                    “Schedule
of Receivables” means, with respect to the Motor Vehicle Loans to be
conveyed to Seller by the Transferor and to Trustee by Seller, the list
identifying such retail Motor Vehicle Loans delivered to Trustee on the Closing
Date.

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

                    “Securities
Intermediary” is defined in Section 4.6 of this Agreement.

                    “Seller”
means USAA Acceptance, LLC, in its capacity as seller of the Receivables to the
Trust under this Agreement, or any successor pursuant to Section 6.3.

                    “Servicer”
means USAA Federal Savings Bank, in its capacity as servicer of the Receivables
under this Agreement, any successor pursuant to Section 7.3 or any
successor Servicer appointed and acting pursuant to Section 8.2.

                    “Servicer
Termination Event” means an event specified in Section 8.1.

                    “Servicer’s
Report” is defined in Section 3.9.

                    “Servicing
Criteria” shall mean the “servicing criteria” set forth in Item 1122(d) of
Regulation AB.

                    “Servicing
Fee” means, with respect to any Distribution Date, an amount equal to the
product of (a) one-twelfth of the Servicing Fee Rate, multiplied by (b) the
Pool Balance as of the beginning of the first day of the preceding Collection
Period.

16

                    “Servicing
Fee Rate” shall be ___% per annum, calculated on the basis of a 360-day
year consisting of twelve 30-day months.

                    “Servicing
Officer” means any individual involved in, or responsible for, the
administration and servicing of the Receivables, whose name appears on a list of
servicing officers attached to an Officer’s Certificate furnished to Trustee by
Servicer, as such list may be amended from time to time by Servicer in writing.

                    “Simple
Interest Method” means the method of allocating a fixed level payment
monthly installments between principal and interest, pursuant to which such
installment is allocated first to accrued and unpaid interest at the Contract
Rate on the unpaid principal balance and the remainder of such installment is
allocable to principal.

                    “Simple
Interest Receivable” means any Receivable under which the portion of a
payment allocable to interest and the portion allocable to principal is
determined in accordance with the Simple Interest Method.

                    “Specified
Reserve Account Balance” means, for any Distribution Date, the greater of
(a) ___% of the sum of the Class A Certificate Balance plus the Class B
Certificate Balance on such Distribution Date (after giving effect to all
payments on the Certificates to be made on or prior to such Distribution Date),
and (b) the Minimum Specified Reserve Balance as of such Distribution Date.

                    “Sum
of Periodic Balances Receivable” means a Receivable that provides for the
payment by the obligor of a specified total amount of payments, payable in
equal monthly installments on each due date, which total represents the
principal amount financed and add-on interest in an amount calculated at the
stated Contract Rate for the term of the Receivable and allocated to each
monthly payment based upon a fraction, the numerator of which is the principal
balance of such Receivable immediately prior to the due date for such monthly
payment and the denominator of which is the sum of all principal balances for
each monthly payment to be made until the maturity of such Receivable.

                    “Supplemental
Servicing Fee” is defined in Section 3.8.

                    “Transferor”
means USAA Acceptance, LLC.

                    “Trust”
means the trust created by this Agreement, which shall be known as USAA Auto
Owner Trust 20[  ]—[  ].

                    “Trustee”
means _________, a ___________, as Trustee under this Agreement and any
successor Trustee appointed and acting pursuant to this Agreement.

                    “Trust
Property” means:

	
  

 	
  

 
	
  

 	
           (A)
 all right, title and interest of Seller in and to the Receivables, and all
 moneys received thereon [on or] after the Cutoff Date;

 

17

	
  

 	
  

 
	
  

 	
           (B) all
 right, title and interest of Seller in the security interests in the Financed
 Vehicles granted by Obligors pursuant to the Receivables and any other
 interest of Seller in the Financed Vehicles and any other property that shall
 secure the Receivables;

 
	
  

 	
  

 
	
  

 	
           (C) the
 interest of Seller in any proceeds with respect to the Receivables from
 claims on any Insurance Policies covering Financed Vehicles or the Obligors
 or from claims under any lender’s single interest insurance policy naming the
 Transferor as an insured;

 
	
  

 	
  

 
	
  

 	
           (D)
 rebates of premiums relating to Insurance Policies and rebates of other items
 such as extended warranties financed under the Receivables, in each case, to
 the extent Servicer would, in accordance with its customary practices, apply
 such amounts to the Principal Balance of the related Receivable;

 
	
  

 	
  

 
	
  

 	
           (E) the
 interest of Seller in any proceeds from (i) any Receivable repurchased by a
 Dealer, pursuant to a Dealer Agreement, as a result of a breach of
 representation or warranty in the related Dealer Agreement, (ii) a default by
 an Obligor resulting in the repossession of the Financed Vehicle under the
 applicable Motor Vehicle Loan or (iii) any Dealer Recourse or other rights
 relating to the Receivables under Dealer Agreements;

 
	
  

 	
  

 
	
  

 	
           (F) all
 right, title and interest in all funds on deposit from time to time in the
 Collection Account, the Payahead Account, the Class A Distribution Account
 and the Class B Distribution Account (including the Account Property related
 thereto) and in all investments and proceeds thereof (but excluding all
 investment income thereon);

 
	
  

 	
  

 
	
  

 	
           (G) all
 right, title and interest of Seller under each Purchase Agreement, including
 the right of Seller to cause the Transferor to repurchase Receivables from
 Seller;

 
	
  

 	
  

 
	
  

 	
           (H) all
 right, title and interest of Seller in any instrument or document relating to
 the Receivables; and

 
	
  

 	
  

 
	
  

 	
           (I) the
 proceeds of any and all of the foregoing.

 

                    Notwithstanding
anything to the contrary contained herein, the Trust Property shall not
include, and the Trust shall not have any right to, the Reserve Account or any
funds actually or deemed to be deposited in such account or any investments
therein.

                    “UCC”
means the Uniform Commercial Code as in effect in the relevant jurisdiction.

                    Section
1.2 Other Interpretative Provisions. For purposes of this Agreement,
unless the context otherwise requires: (a) accounting terms not otherwise
defined in this Agreement, and accounting terms partly defined in this
Agreement to the extent not defined, shall have the respective meanings given
to them under GAAP; (b) terms defined in Article 9 of

18

the UCC as in effect in the relevant jurisdiction and not otherwise
defined in this Agreement are used as defined in that Article; (c) the words
“hereof,” “herein” and “hereunder” and words of similar import refer to this
Agreement as a whole and not to any particular provision of this Agreement; (d)
references to any Article, Section, Schedule, Appendix or Exhibit are
references to Articles, Sections, Schedules, Appendices and Exhibits in or to
this Agreement and references to any paragraph, subsection, clause or other
subdivision within any Section or definition refer to such paragraph,
subsection, clause or other subdivision of such Section or definition; (e) the
term “including” means “including without limitation”; (f) except as otherwise
expressly provided herein, references to any law or regulation refer to that
law or regulation as amended from time to time and include any successor law or
regulation; (g) references to any Person include that Person’s successors and
assigns; and (h) headings are for purposes of reference only and shall not
otherwise affect the meaning or interpretation of any provision hereof.

                    Section
1.3 Calculations. All calculations of the amount of interest accrued on
the Certificates during any Collection Period and all calculations of the
amount of the Servicing Fee payable with respect to a Collection Period shall
be made on the basis of a 360-day year consisting of twelve 30-day months.

                    Section
1.4 References. All references to the Record Date prior to the first
Record Date in the life of the Trust shall be to the Closing Date. All references
to the first day of a Collection Period shall refer to the opening of business
on such day. All references to the last day of a Collection Period shall refer
to the close of business on such day. All references herein to the close of
business means the close of business, [Texas] time.

                    Section 1.5
Action
by or Consent of Holders. Whenever any provision of this Agreement refers
to action to be taken, or consented to, by Holders, such provision shall be
deemed to refer to Holders of record as of the Record Date immediately
preceding the date on which such action is to be taken, or consented to, by
Holders.

ARTICLE II

THE TRUST PROPERTY

                    Section
2.1 Conveyance of Trust Property. In consideration of Trustee’s delivery
to Seller or its designee of authenticated Certificates, in authorized
denominations, in an aggregate amount equal to the Original Certificate
Balance, Seller hereby sells, transfers, assigns and conveys to Trustee, upon
the terms and conditions hereof, in trust for the benefit of the Holders, the
Trust Property, without recourse (except to the extent of Servicer’s
obligations under this Agreement and the Related Agreements). The sale,
transfer, assignment, setting over and conveyance made hereunder shall not
constitute and is not intended to result in an assumption by Trustee, any
Holder or any Certificate Owner of any obligation of the Transferor to the
Obligors, the Dealers or any other Person in connection with the Receivables
and the other Trust Property or any agreement, document or instrument related
thereto.

                    Section
2.2 Representations and Warranties as to Each Receivable. The Servicer
hereby makes the following representations and warranties as to each Receivable
on which Trustee shall rely in accepting the Trust Property in trust and
authenticating the

19

Certificates. Unless otherwise indicated, such representations and
warranties shall speak as of the Closing Date, but shall survive the sale,
transfer and assignment of the Receivables and the other Trust Property to the
Trust.

	
  

 	
  

 
	
  

 	
           (a) Characteristics
 of Receivables. The Receivable has been fully and properly executed by
 the parties thereto and (i) is a Direct Loan made by an Originator or has
 been originated by a Dealer in the ordinary course of such Dealer’s business
 and has been purchased by an Originator, in either case, in the ordinary
 course of such Originator’s business and in accordance with such Originator’s
 underwriting standards to finance the retail sale by a Dealer of the related
 Financed Vehicle or has otherwise been acquired by the Transferor, (ii) the
 Originator of which has underwriting standards that require physical damage
 insurance to be maintained on the related Financed Vehicle, (iii) is secured
 by a valid, subsisting, binding and enforceable first priority security
 interest in favor of the Transferor in the Financed Vehicle (subject to
 administrative delays and clerical errors on the part of the applicable
 government agency and to any statutory or other lien arising by operation of
 law after the Closing Date which is prior to such security interest), which
 security interest is assignable together with such Receivable, and has been
 so assigned to Seller, and subsequently assigned by Seller to Trustee, (iv)
 contains customary and enforceable provisions such that the rights and
 remedies of the holder thereof are adequate for realization against the
 collateral of the benefits of the security, (v) provided, at origination, for
 level monthly payments (provided that the amount of the last
 payment may be different), which fully amortize the Initial Principal Balance
 over the original term, (vi) provides for interest at the Contract Rate
 specified in the Schedule of Receivables, (vii) was originated in the United
 States, and (viii) constitutes “chattel paper” as defined in the UCC.

 
	
  

 	
  

 
	
  

 	
           (b) Individual
 Characteristics. The Receivables have the following individual
 characteristics as of the Cutoff Date: (i) each Receivable is secured by a
 Motor Vehicle; (ii) each Receivable has a Contract Rate of at least ____% and
 not more than ___%; (iii) each Receivable had a remaining number of scheduled
 payments, as of the Cutoff Date, of not less than ______ and not more than
 _____; (iv) each Receivable had an initial Principal Balance of not less than
 $_______ and not more than $_____; (v) no Receivable was more than 30 days
 past due as of the Cutoff Date; (vi) no Financed Vehicle had been repossessed
 as of the Cutoff Date; (vii) no Receivable is subject to a force placed
 Physical Damage Insurance Policy on the related Financed Vehicle; [(viii)
 each Receivable is a Simple Interest Receivable;] and (ix) the Dealer of the
 Financed Vehicle has no participation in, or other right to receive, any
 proceeds of the Receivable. The Receivables were selected using selection
 procedures that were not intended by the Transferor or Seller to be adverse
 to the Holders.

 
	
  

 	
  

 
	
  

 	
           (c) Schedule
 of Receivables. The information with respect to each Receivable set forth
 in the Schedule of Receivables, including (without limitation) the identity
 and address of the Obligor, account number, the Initial Principal

 

20

	
  

 	
  

 
	
  

 	
 Balance, the maturity date and the Contract Rate, was true and
 correct in all material respects as of the close of business on the Cutoff
 Date.

 
	
  

 	
  

 
	
  

 	
           (d) Compliance
 with Law. The Receivable complied at the time it was originated or made,
 and will comply as of the Closing Date, in all material respects with all
 requirements of applicable federal, state and local laws, and regulations
 thereunder, including, to the extent applicable, usury laws, the Federal
 Truth in Lending Act, the Equal Credit Opportunity Act, the Fair Credit
 Billing Act, the Fair Credit Reporting Act, the Federal Trade Commission Act,
 the Magnuson-Moss Warranty Act, the Fair Debt Collection Practices Act,
 Consumer Financial Protection Bureau’s B and Z and any other consumer credit,
 consumer protection, equal opportunity and disclosure laws.

 
	
  

 	
  

 
	
  

 	
           (e) Binding
 Obligation. The Receivable constitutes the genuine, legal, valid and
 binding payment obligation in writing of the Obligor, enforceable in all
 material respects by the holder thereof in accordance with its terms, subject
 to the effect of bankruptcy, insolvency, reorganization, or other similar
 laws affecting the enforcement of creditors’ rights generally, and the
 Receivable is not subject to any right of rescission, setoff, counterclaim or
 defense, including the defense of usury.

 
	
  

 	
  

 
	
  

 	
           (f) Lien
 in Force. Neither Seller nor the Transferor has taken any action which
 would have the effect of releasing the related Financed Vehicle from the Lien
 granted by the Receivable in whole or in part.

 
	
  

 	
  

 
	
  

 	
           (g) No
 Amendment or Waiver. No material provision of the Receivable has been
 amended, waived, altered or modified in any respect, except such waivers as
 would be permitted under this Agreement, and no amendment, waiver, alteration
 or modification causes such Receivable not to conform to the other
 representations or warranties contained in this Section.

 
	
  

 	
  

 
	
  

 	
           (h) No
 Liens. Neither Seller nor the Transferor has received notice of any Liens
 or claims, including Liens for work, labor, materials or unpaid state or
 federal taxes, relating to the Financed Vehicle securing the Receivable, that
 are or may be prior to or equal to the Lien granted by the Receivable.

 
	
  

 	
  

 
	
  

 	
           (i) No
 Default. Except for payment delinquencies continuing for a period of not
 more than 30 days as of the Cutoff Date, to the knowledge of Seller, no
 default, breach, violation or event permitting acceleration under the terms
 of the Receivable exists and no continuing condition that with notice or
 lapse of time, or both, would constitute a default, breach, violation or
 event permitting acceleration under the terms of the Receivable has arisen.

 
	
  

 	
  

 
	
  

 	
           (j) Insurance.
 The Receivable requires the Obligor to insure the Financed Vehicle under a
 Physical Damage Insurance Policy, pay the premiums for such insurance and
 keep such insurance in full force and effect.

 

21

	
  

 	
  

 
	
  

 	
           (k) Good
 Title. No Receivable has been sold, transferred, assigned, or pledged by
 Seller to any Person other than the Trust. Immediately prior to the transfer
 and assignment herein contemplated, Seller had good and marketable title to
 the Receivable free and clear of any Lien and had full right and power to
 transfer and assign the Receivable to the Trust and immediately upon the
 transfer and assignment of the Receivable to the Trust, the Trust shall have
 good and marketable title to the Receivable, free and clear of any Lien; and
 the Trust’s interest in the Receivable resulting from the transfer has been
 perfected under the UCC.

 
	
  

 	
  

 
	
  

 	
           (l) Obligations.
 The Transferor has duly fulfilled all obligations on its part to be fulfilled
 under, or in connection with, the Receivable.

 
	
  

 	
  

 
	
  

 	
           (m) Possession.
 There is only one original executed Receivable, and immediately prior to the
 Closing Date, the Transferor will have possession of such original executed
 Receivable.

 
	
  

 	
  

 
	
  

 	
           (n) [No
 Government Obligor. The Obligor on the Receivable is not the United
 States of America or any state thereof or any local government, or any
 agency, department, political subdivision or instrumentality of the United
 States of America or any state thereof or any local government.]

 
	
  

 	
  

 
	
  

 	
           (o) Marking
 Records. By the Closing Date, Seller shall have caused the portions of
 Seller’s and the Transferor’s electronic master record of Motor Vehicle Loans
 relating to the Receivables to be clearly and unambiguously marked to show
 that the Receivable is owned by Trustee in accordance with the terms of this
 Agreement.

 
	
  

 	
  

 
	
  

 	
           (p) No
 Assignment. As of the Closing Date, Seller shall not have taken any
 action to convey any right to any Person that would result in such Person
 having a right to payments received under the Insurance Policies or Dealer
 Agreements, or payments due under the Receivable, that is senior to, or equal
 with, that of Trustee.

 
	
  

 	
  

 
	
  

 	
           (q) Lawful
 Assignment. The Receivable has not been originated in, and is not subject
 to the laws of, any jurisdiction under which the sale, transfer or assignment
 of such Receivable hereunder or pursuant to transfers of the Certificates are
 unlawful, void or voidable. Neither Seller nor the Transferor has entered
 into any agreement with any obligor that prohibits, restricts or conditions
 the assignment of any portion of the Receivables.

 

                    Section
2.3 Representations and Warranties as to the Receivables in the Aggregate.
The Servicer hereby makes the following representations and warranties as to
the Receivables on which Trustee shall rely in accepting the Trust Property in
trust and authenticating the Certificates. Unless otherwise indicated, such
representations and warranties shall speak as of the Closing Date, but shall
survive the sale, transfer and assignment of the Receivables and the other
Trust Property to the Trust.

22

	
  

 	
  

 
	
  

 	
           (a) Amounts.
 The Original Pool Balance was $______________.

 
	
  

 	
  

 
	
  

 	
           (b) Aggregate
 Characteristics. The Receivables had the following characteristics in the
 aggregate as of the Cutoff Date: (i) approximately ___% of the Original Pool
 Balance was attributable to loans for purchases of new Financed Vehicles, and
 approximately ___% of the Original Pool Balance was attributable to loans for
 purchases of used Financed Vehicles; (ii) approximately ___%, ___%, ___% and
 ____% of the Original Pool Balance was attributable to Receivables the
 mailing addresses of the Obligors with respect to which are located in the
 States of __________, __________, __________, and ___________, respectively,
 and no other state accounts for more than 5% of the Original Pool Balance;
 (iii) the weighted average Contract Rate of the Receivables was ____%; (iv)
 there are ______________ Receivables being conveyed by Seller to the Trust;
 (v) the average Cutoff Date Principal Balance of the Receivables was
 $________; and (vi) the weighted average original term and weighted average
 remaining term of the Receivables were ______ months and ___ months,
 respectively.

 

                    Section
2.4 Repurchase upon Breach. Seller, Servicer or Trustee, as the case may
be, shall inform the other parties to this Agreement promptly, in writing, upon
the discovery of any breach or failure to be true of the representations or
warranties made by Servicer in Section 2.2, provided that the failure to
give such notice shall not affect any obligation of Servicer. If the breach or
failure shall not have been cured by the last day of the Collection Period
which includes the 60th day (or if Servicer elects, the 30th day) after the
date on which Servicer becomes aware of, or receives written notice from
Trustee or Servicer of, such breach or failure, and such breach or failure
materially and adversely affects the interests of Trustee and the Holders in
any Receivable, Servicer shall purchase each such affected Receivable from
Trustee as of such last day of such Collection Period at a purchase price equal
to the Purchase Amount for such Receivable as of such last day of such
Collection Period. Notwithstanding the foregoing, any such breach or failure
with respect to the representations and warranties contained in Section 2.2
will not be deemed to have such a material and adverse effect with respect to a
Receivable if the facts resulting in such breach or failure do not affect the
ability of the Trust to receive and retain payment in full on such Receivable.
In consideration of the repurchase of a Receivable hereunder, Servicer shall
remit the Purchase Amount of such Receivable, no later than the close of
business on the next Deposit Date, in the manner specified in Section 4.4.
The sole remedy of the Trust, Trustee or the Holders with respect to a breach
or failure to be true of the representations or warranties made by Servicer
pursuant to Section 2.2 shall be to require Servicer to purchase
Receivables pursuant to this Section.

                    Section
2.5 Custodian of Receivable Files. (a) Custody. To assure uniform
quality in servicing the Receivables and to reduce administrative costs,
Trustee, upon the execution and delivery of this Agreement, revocably appoints
the Custodian, as agent, and the Custodian accepts such appointment, to act as
agent on behalf of Trustee to maintain custody of the following documents or
instruments, which are hereby constructively delivered to Trustee with respect
to each Receivable (collectively, a “Receivable File”):

	
  

 	
  

 
	
  

 	
 (i) the fully executed original of the Receivable;

 

23

	
  

 	
  

 
	
  

 	
 (ii) any documents customarily delivered to or held by Servicer
 evidencing the existence of any Physical Damage Insurance Policies;

 
	
  

 	
  

 
	
  

 	
 (iii) the original credit application, fully executed by the Obligor;

 
	
  

 	
  

 
	
  

 	
 (iv) the original certificate of title, or such other documents as
 the Transferor, as appropriate, keeps on file, in accordance with its
 customary procedures, evidencing the security interest of the Transferor in
 the Financed Vehicle;

 
	
  

 	
  

 
	
  

 	
 (v) originals or true copies of all documents, instruments or
 writings relating to extensions, amendments or waivers of the Receivable; and

 
	
  

 	
  

 
	
  

 	
 (vi) any and all other documents or electronic records that the
 Transferor or Servicer, as the case may be, keeps on file, in accordance with
 its customary procedures, relating to the Receivable, any Insurance Policies,
 the Obligor or the Financed Vehicle.

 

	
  

 	
  

 
	
  

 	
           (b) Safekeeping.
 Servicer, in its capacity as Custodian, shall hold the Receivable Files as
 agent on behalf of Trustee for the benefit of all present and future Holders,
 and maintain such accurate and complete accounts, records and computer
 systems pertaining to each Receivable as shall enable Servicer and Trustee to
 comply with the terms and provisions of this Agreement applicable to them. In
 performing its duties as Custodian hereunder, the Custodian shall act with
 reasonable care, exercising the degree of skill, attention and care that
 Custodian exercises with respect to receivable files relating to other
 similar motor vehicle loans owned and/or serviced by the Custodian and that
 is consistent with industry standards. In accordance with its customary
 practice with respect to its retail installment sale contracts, Custodian
 shall conduct, or cause to be conducted, periodic audits of the Receivable
 Files held by it under this Agreement, and of the related accounts, records,
 and computer systems, and shall maintain the Receivable Files in such a
 manner as shall enable Trustee to verify, if Trustee so elects, the accuracy
 of the record keeping of Custodian. Custodian shall promptly report to Trustee
 any failure on its part to hold the Receivable Files and maintain its
 accounts, records and computer systems as herein provided, and promptly take
 appropriate action to remedy any such failure. The Custodian hereby
 acknowledges receipt of the Receivable File for each Receivable listed on the
 Schedule of Receivables. Nothing herein shall be deemed to require Trustee to
 verify the accuracy of the record keeping of the Custodian.

 
	
  

 	
  

 
	
  

 	
           (c) Maintenance
 of and Access to Records. The Custodian shall maintain each Receivable
 File at the location specified in Schedule A to this Agreement, or at
 such other office of the Custodian within the United States (or, in the case
 of any successor Custodian, within the State in which its principal place of
 business is located) as shall be specified to Trustee by 30 days’ prior
 written notice. Upon Trustee’s reasonable request, the Custodian shall make
 available to Trustee or its agents (or, when requested in writing by Trustee,
 to its 

 

24

	
  

 	
  

 
	
  

 	
 attorneys or auditors) the Receivable Files and the related accounts,
 records and computer systems maintained by the Custodian at such times during
 the normal business hours of the Custodian for purposes of inspecting,
 auditing or making copies or abstracts of the same.

 
	
  

 	
  

 
	
  

 	
           (d) Release
 of Documents. Upon written instructions from Trustee, Custodian shall
 release any document in the Receivable Files to Trustee or its agent or
 designee, as the case may be, at such place or places as Trustee may
 designate, as soon thereafter as is practicable. Any document so released
 shall be handled by Trustee with due care and returned to the Custodian for
 safekeeping as soon as Trustee or its agent or designee, as the case may be,
 shall have no further need therefor.

 
	
  

 	
  

 
	
  

 	
           (e) Title
 to Receivables. The Custodian agrees that, in respect of any Receivable
 File held by the Custodian hereunder, the Custodian will not at any time have
 or in any way attempt to assert any interest in such Receivable File or the
 related Receivable, other than solely for the purpose of collecting or
 enforcing the Receivable for the benefit of the Trust and that the entire
 equitable interest in such Receivable and the related Receivable File shall
 at all times be vested in the Trust.

 
	
  

 	
  

 
	
  

 	
           (f) Instructions;
 Authority to Act. The Custodian shall be deemed to have received proper
 instructions with respect to the Receivable Files upon its receipt of written
 instructions signed by an Authorized Officer of Trustee. A certified copy of
 excerpts of certain resolutions of the Board of Directors of Trustee shall
 constitute conclusive evidence of the authority of any such Authorized
 Officer to act and shall be considered in full force and effect until receipt
 by the Custodian of written notice to the contrary given by Trustee.

 
	
  

 	
  

 
	
  

 	
           (g) Custodian’s
 Indemnification. Custodian shall indemnify and hold harmless Trustee, its
 officers, directors, employees and agents and the Holders from and against
 any and all liabilities, obligations, losses, compensatory damages, payments,
 costs or expenses (including legal fees if any) of any kind whatsoever that
 may be imposed on, incurred or asserted against Trustee or the Holders as the
 result of any act or omission of Custodian relating to the maintenance and
 custody of the Receivable Files; provided that the Custodian shall not be
 liable hereunder to the extent that such liabilities, obligations, losses,
 compensatory damages, payments, costs or expenses result from the willful
 misfeasance, bad faith or negligence of Trustee. Indemnification under this Section
 2.5(g) shall include reasonable fees and expenses of counsel and expenses
 of litigation and shall survive termination of this Agreement and the
 resignation or removal of Trustee. If Custodian shall have made any indemnity
 payments to Trustee pursuant to this Section and Trustee thereafter shall
 collect any of such amounts from Persons other than Custodian, Trustee shall
 immediately upon receipt thereof repay such amounts to Custodian, without
 interest.

 

25

	
  

 	
  

 
	
  

 	
           (h) Effective
 Period and Termination. Servicer’s appointment as Custodian shall become
 effective as of the Cutoff Date and shall continue in full force and effect
 until terminated pursuant to this subsection (h). If Servicer shall
 resign as Servicer in accordance with Section 7.5 or if all of the
 rights and obligations of Servicer shall have been terminated under Section
 8.1, the appointment of Servicer as Custodian hereunder may be terminated
 by Trustee or by the Majority Holders, in the same manner as Trustee or such
 Holders may terminate the rights and obligations of Servicer under Section
 8.1. Trustee may terminate Servicer’s appointment as Custodian hereunder
 at any time with cause, or with 30 days’ prior written notice without cause,
 upon written notification to Servicer. As soon as practicable after any
 termination of such appointment Servicer shall deliver, or cause to be
 delivered, the Receivable Files to Trustee, Trustee’s agent or Trustee’s
 designee at such place or places as Trustee may reasonably designate.
 Notwithstanding any termination of Servicer as Custodian hereunder (other
 than in connection with a termination resulting from the termination of
 Servicer, as such, pursuant to Section 8.1), from and after the date
 of such termination, and for so long as Servicer is acting as such pursuant
 to this Agreement, Trustee shall provide, or cause the successor Custodian to
 provide, access to the Receivable Files to Servicer, at such times as
 Servicer shall reasonably request, for the purpose of carrying out its duties
 and responsibilities with respect to the servicing of the Receivables
 hereunder.

 
	
  

 	
  

 
	
  

 	
           (i) Delegation.
 Custodian may, at any time without notice or consent, delegate any or all of
 its duties to the Transferor; provided that no such delegation shall
 relieve Custodian of its responsibility with respect to such duties and
 Custodian shall remain obligated and liable to Trustee and the Holders for
 its duties hereunder as if Custodian alone were performing such duties.

 

ARTICLE III

ADMINISTRATION AND SERVICING OF TRUST
PROPERTY

                    Section
3.1 Duties of Servicer. (a) Servicer is hereby authorized to act as
agent for the Trust and in such capacity shall manage, service, administer and
make collections on the Receivables (other than Purchased Receivables), and
perform the other actions required by Servicer under this Agreement, with
reasonable care. Without limiting the standard set forth in the preceding
sentence, Servicer shall use a degree of skill, attention and care that is not
less than Servicer exercises with respect to comparable Motor Vehicle Loans
that it services for itself or others and that is consistent with prudent
industry standards. Servicer’s duties shall include the collection and posting
of all payments, responding to inquiries by obligors on the Receivables, or by
federal, state or local governmental authorities, investigating delinquencies,
sending payment coupons or monthly invoices to Obligors, reporting required tax
information to Obligors, accounting for Collections, monitoring the status of
Physical Damage Insurance Policies with respect to the Financed Vehicles as
provided in Section 3.4(a), furnishing monthly and annual statements to
Trustee with respect to distributions, providing collection and repossession
services in the event of Obligor default and performing the other duties
specified herein. Servicer shall also administer and enforce all rights and
responsibilities of the holder of 

26

the Receivables provided for in the Physical Damage Insurance Policies
as provided in Section 3.4(b) and the Dealer Agreements. Without
limiting the generality of the foregoing, Servicer is hereby authorized and
empowered by Trustee to execute and deliver, on behalf of itself, the Trust,
Trustee and the Holders, any and all instruments of satisfaction or
cancellation, or of partial or full release or discharge, and all other
comparable instruments, with respect to the Receivables or to the Financed
vehicles, all in accordance with this Agreement; provided that
notwithstanding the foregoing, Servicer shall not, except pursuant to an order
from a court of competent jurisdiction, release an Obligor from payment of any
unpaid amount under any Receivable or waive the right to collect the unpaid
balance of any Receivable from the Obligor, except in connection with a de
minimis deficiency which Servicer would not attempt to collect in accordance
with its customary procedures. If Servicer shall commence a legal proceeding to
enforce a Receivable, Trustee shall thereupon be deemed to have automatically
assigned such Receivable to Servicer, which assignment shall be solely for
purposes of collection. Trustee shall furnish Servicer with any powers of
attorney and other documents or instruments necessary or appropriate to enable
Servicer to carry out its servicing and administrative duties hereunder.

	
  

 	
  

 
	
  

 	
           (b)
 Servicer may, at any time without notice (except that Servicer shall give
 written notice to each Rating Agency of any delegation outside the ordinary course
 of business of the substantial portion of its servicing business) or consent,
 delegate specific duties to subcontractors who are in the business of
 performing such duties; provided that no such delegation shall
 relieve Servicer of its responsibility with respect to such duties and
 Servicer shall remain obligated and liable to Trustee and the Holders for
 servicing and administering the Receivables in accordance with this Agreement
 as if Servicer alone were performing such duties.

 

                    Section
3.2 Collection of Receivable Payments. (a) Servicer shall make
reasonable efforts to collect all payments called for under the terms and
provisions of the Receivables as and when the same shall become due, and
otherwise act with respect to the Receivables, the Physical Damage Insurance
Policies, the Dealer Agreements and the other Trust Property in such manner as
will, in the reasonable judgment of Servicer, maximize the amount to be
received by the Trust with respect thereto, in accordance with the standard of
care required by Section 3.1. Servicer shall be entitled to amend or
modify any Receivable in accordance with its customary procedures if Servicer
believes in good faith that such amendment or modification is in the best
interests of the Trust; provided that Servicer may not, unless
ordered by a court of competent jurisdiction or otherwise required by
applicable law, (i) extend a Receivable beyond the Final Scheduled Maturity
Date, or (ii) reduce the Principal Balance or Contract Rate of any Receivable.
If Servicer fails to comply with the provisions of the preceding sentence,
Servicer shall be required to purchase the Receivable or Receivables affected
thereby, for the Purchase Amount, in the manner specified in Section 3.7
as of the last day of the Collection Period in which such failure occurs.
Servicer may, in its discretion (in accordance with its customary standards,
policies and procedures), waive any prepayment charge, late payment charge,
extension fee or any other fee that may be collected in the ordinary course of
servicing a Receivable.

	
  

 	
  

 
	
  

 	
           (b) If in
 the course of collecting payments under the Receivables, Servicer determines
 to set off any obligation of Servicer to an Obligor against an

 

27

	
  

 	
  

 
	
  

 	
 amount payable by the Obligor with respect to such Receivable,
 Servicer shall deposit the amount so set off in the Collection Account, no
 later than the close of business on the Deposit Date for the Collection
 Period in which the set-off occurs. All references herein to payments or Liquidation
 Proceeds collected by Servicer shall include amounts set-off by Servicer.

 

                    Section
3.3 Realization upon
Receivables. On behalf of the Trust, Servicer shall charge off a Receivable
as a Defaulted Receivable in accordance with its customary standards (and, in
no event later than ___ days after a Receivable shall have become delinquent)
and shall use reasonable efforts to repossess and liquidate the Financed
Vehicle securing any Defaulted Receivable as soon as feasible after default, in
accordance with the standard of care required by Section 3.1. In taking
such action, Servicer shall follow such customary and usual practices and
procedures as it shall deem necessary or advisable in its servicing of Motor
Vehicle Loans, and as are otherwise consistent with the standard of care
required under Section 3.1, which shall include exercising any rights
under the Dealer Agreements and selling the Financed Vehicle at public or
private sale. Servicer shall be entitled to recover all reasonable expenses
incurred by it in the course of repossessing and liquidating a Financed Vehicle
into cash proceeds or pursuing any deficiency claim against the related
Obligor, but only out of the cash proceeds of such Financed Vehicle or any
deficiency obtained from the Obligor. The foregoing shall be subject to the
provision that, in any case in which a Financed Vehicle shall have suffered
damage, Servicer shall not expend funds in connection with the repair or the
repossession of such Financed Vehicle unless it shall determine in its
discretion that such repair and/or repossession will increase the Liquidation
Proceeds of the related Receivable by an amount equal to or greater than the
amount of such expenses.

                    If
Servicer elects to commence a legal proceeding to enforce a Dealer Agreement,
the act of commencement shall be deemed to be an automatic assignment from
Trustee to Servicer of the rights under such Dealer Agreement. If, however, in
any enforcement suit or legal proceeding, it is held that Servicer may not
enforce a Dealer Agreement on the grounds that it is not a real party in
interest or a Person entitled to enforce the Dealer Agreement, Trustee, on
behalf of the Trust, at Servicer’s expense, shall take such steps as Servicer
deems necessary to enforce the Dealer Agreement, including bringing suit in its
name or the names of the Holders.

                    Section
3.4 Physical Damage Insurance. The Receivables require that each
Financed Vehicle be insured under a Physical Damage Insurance Policy. Servicer,
in accordance with its customary servicing procedures and underwriting
standards shall require that each Obligor shall have obtained and shall
maintain Physical Damage Insurance covering the related Financial Vehicle as of
the execution of the Receivable.

                    Section
3.5 Maintenance of Security Interests in Financed Vehicles. Servicer, in
accordance with the standard of care required under Section 3.1, shall
take such reasonable steps as are necessary to maintain perfection of the
security interest created by each Receivable in the related Financed Vehicle
for the benefit of the Trust. Trustee, on behalf of the Trust, hereby
authorizes Servicer, and Servicer hereby agrees, to take such reasonable steps
as are necessary to re-perfect such security interest on behalf of the Trust in
the event Servicer receives notice of the relocation of a Financed Vehicle. If
there has been a Servicer Termination Event, upon the request of Trustee,
Servicer, at its expense, shall promptly and duly execute and deliver

28

such documents and instruments, and take such other reasonable actions
as may be necessary, as evidenced by an Opinion of Counsel delivered to Trustee
to perfect the Trust’s interest in the Trust Property against all other
Persons, including the delivery of the Receivables and the Receivable Files to
Trustee, its agent, or its designee, the endorsement and delivery of the
Physical Damage Insurance Policies or the notification of the insurers
thereunder, the execution of transfer instruments, and the endorsement to
Trustee and the delivery of the certificates of title to the Financed Vehicles
to the appropriate department or departments of motor vehicles (or other
appropriate governmental agency).

                    Section
3.6 Covenants of Servicer. Servicer makes the following covenants on
which Trustee relies in accepting the Trust Property in trust and in executing
and authenticating the Certificates:

	
  

 	
  

 
	
  

 	
           (a) Security
 Interest to Remain in Force. Servicer shall not release any Financed
 Vehicle from the security interest granted by the related Receivable in whole
 or in part, except upon payment in full of the Receivable or as otherwise
 contemplated herein.

 
	
  

 	
  

 
	
  

 	
           (b) No
 Impairment. Servicer shall not impair in any material respect the rights
 of the Holders in the Receivables, the Dealer Agreements or the Physical
 Damage Insurance Policies or, subject to clause (c), otherwise amend
 or alter the terms thereof if, as a result of such amendment or alteration,
 the interests of the Trust and the Holders hereunder would be materially
 adversely affected.

 
	
  

 	
  

 
	
  

 	
           (c) Amendments.
 Servicer shall not amend or otherwise modify any Receivable (including the
 grant of any extension thereunder), except in accordance with Section 3.2.

 

                    Section
3.7 Purchase by Servicer upon Breach. Seller, Servicer or Trustee, as
the case may be, shall inform the other parties promptly, in writing, upon the
discovery of any breach by Servicer of its covenants under Section 3.5
or 3.6; provided that the failure to give such notice shall not
affect any obligation of Servicer. Unless the breach shall have been cured by
the last day of the Collection Period which includes the 60th day (or the 30th
day, if Servicer so elects) after the date on which Servicer becomes aware of,
or receives written notice of, such breach, and such breach or failure
materially and adversely affects the interests of Trustee and the Holders in
any Receivable, Servicer shall purchase such Receivable from Trustee as of the
last day of the Collection Period at a purchase price equal to the Purchase
Amount for such Receivable as of the last day of such Collection Period; provided
that in the case of a breach of the covenant contained in Section 3.6(c),
Servicer shall be obligated to purchase the affected Receivable or Receivables
on the Deposit Date immediately succeeding the Collection Period during which
Servicer becomes aware of, or receives written notice
of, such breach. Notwithstanding the foregoing, any such breach or failure with
respect to the covenants contained in Sections 3.5 and 3.6 will
not be deemed to have such a material and adverse effect with respect to a
Receivable if the facts resulting in such breach or failure do not affect the ability
of the Trust to receive and retain payment in full on such Receivable. In
consideration of the purchase of a Receivable hereunder, Servicer shall remit
the Purchase Amount of such Receivable in the manner specified in Section
4.4. The sole remedy of the Trust, Trustee or the 

29

Holders against Servicer with respect to a breach pursuant to Section
3.5 or 3.6 shall be to require Servicer to repurchase Receivables
pursuant to this Section.

          Section 3.8
Servicing Compensation. The servicing fee for (a) the _____ 20__ Distribution
Date shall equal $________ and (b) for each Distribution Date thereafter shall
equal the product of (i) one-twelfth, (ii) the Servicing Fee Rate and (iii) the
Pool Balance as of the opening of business on the first day of the related
Collection Period (the “Servicing Fee”). Servicer shall also be entitled
to retain any late fees, extension fees, prepayment charges (including, in the
case of any Rule of 78’s Receivable or Sum of Periodic Balances Receivable that
is prepaid in full, amounts received in excess of the outstanding Principal
Balance of such Receivable and accrued interest thereon calculated as if such
Receivable were an Actuarial Receivable) and certain non-sufficient funds
charges and other administrative fees or similar charges allowed by applicable
law with respect to Receivables collected (from whatever source) on the
Receivables and shall be paid any interest earned on deposits in the Accounts
(the “Supplemental Servicing Fee”). It is understood and agreed that
Available Interest or Available Principal shall not include any amounts
retained by Servicer which constitute Supplemental Servicing Fees. The
Servicing Fee in respect of a Collection Period (together with any portion of
the Servicing Fee that remains unpaid from prior Distribution Dates), if the
Rating Agency Condition is satisfied, may be paid at the beginning of such
Collection Period out of Collections for such Collection Period. As provided in
Section 4.5, as additional compensation, Servicer shall be entitled to
receive on each Distribution Date, any Additional Servicing for such
Distribution Date.

          Section 3.9
Servicer’s Report. (a) On each Determination Date, Servicer shall
deliver to Trustee, each Paying Agent and Seller, with a copy to the Rating
Agencies, a Servicer’s Report substantially in the form of Exhibit C (a
“Servicer’s Report”) containing, among other things, (i) all information
necessary to make the deposits, transfers and distributions required by Sections
4.4, 4.5 and 4.6, (ii) all information necessary for sending
statements to Holders pursuant to Section 4.7, (iii) all information
necessary to prepare the certificate described in Section 9.3, (iv) all
information necessary to determine if there has been a Servicer Termination
Event under Section 8.1, and (v) all information necessary to reconcile
all deposits to, and withdrawals from, the Collection Account for such
Distribution Date and the related Collection Period. Servicer also shall
separately identify (by account number of the Receivable as it appears in the
Schedule of Receivables) to Trustee in a written notice or a list in computer
readable form the Receivables to be purchased by Servicer, as the case may be,
on the related Deposit Date, and each Receivable which became a Defaulted
Receivable during the related Collection Period.

	
  

 	
  

 
	
  

 	
           (b)
 Servicer shall provide Trustee with a database file for the Receivables at or
 prior to the Closing Date (but with information as of the close of business
 on the Cutoff Date).

 

          Section
3.10 Annual Statement as to Compliance. (a) The Servicer will deliver to
the Trustee and each Rating Agency, on or before March 30th of each
year, beginning on March 30, 20[   ], an Officer’s Certificate
(with appropriate insertions) providing such information as is required under
Item 1123 of Regulation AB.

30

	
  

 	
  

 
	
  

 	
           (b)
 Servicer shall deliver to Trustee and each Rating Agency, promptly after
 having obtained knowledge thereof, but in no event later than five Business
 Days thereafter, written notice in an Officer’s Certificate of any event
 which constitutes, or with the giving of notice or lapse of time or both,
 would become, a Servicer Termination Event under Section 8.1.

 
	
  

 	
  

 
	
  

 	
           (c) The
 Servicer will deliver to the Trustee, on or before March 30th of
 each year, beginning on March 30, 20[  ], a report regarding Servicer’s
 assessment of compliance with the Servicing Criteria during the immediately
 preceding calendar year, including disclosure of any material instance of
 non-compliance identified by Servicer, as required under paragraph (b) of
 Rule 13a-18, Rule 15d-18 of the Exchange Act and Item 1122 of Regulation AB.

 

          Section
3.11 Annual Registered Public Accounting Firm Attestation Report. On or
before the 90th day following the end of each fiscal year, beginning with the
fiscal year ending December 31, 20[  ], Servicer shall cause a firm of
nationally recognized independent public accountants (who may also render other
services to Servicer, Seller or their respective Affiliates) to furnish to the
Trustee, Servicer, Seller and each Rating Agency each attestation report on
assessments of compliance with the Servicing Criteria with respect to Servicer
or any affiliate thereof during the related fiscal year delivered by such
accountants pursuant to paragraph (c) of Rule 13a-18 or Rule 15d-18 of the
Exchange Act and Item 1122 of Regulation AB. The certification required by this
paragraph may be replaced by any similar certification using other procedures
or attestation standards which are now or in the future in use by servicers of
comparable motor vehicle receivables, or which comply with any rule,
regulation, “no action” letter or similar guidance promulgated by the
Commission.

          Such report
will also indicate that the firm is independent of Servicer within the meaning
of the Code of Professional Ethics of the American Institute of Certified
Public Accountants.

          Section
3.12 Access to Certain Documentation and Information Regarding Receivables.
Servicer shall provide Trustee and the Holders with access to the Receivable
Files (in the case of the Holders, only in such cases where it shall be
required by applicable statutes or regulations to give access to such
documentation as demonstrated by evidence satisfactory to Servicer in its reasonable
judgment). Such access shall be afforded without charge, but only upon
reasonable request and during normal business hours at the offices of Servicer.
Nothing in this Section shall affect the obligation of Servicer to observe any
applicable law prohibiting disclosure of information regarding the Obligors,
and the failure of Servicer to provide access to information as a result of
such obligation shall not constitute a breach of this Section. Any Holder, by
its acceptance of a Certificate, shall be deemed to have agreed to keep any
information obtained by it pursuant to this Section confidential and not to use
such information for any other purpose, except as required by applicable law.

          Section
3.13 Reports to the Commission. Servicer shall, on behalf of the Trust,
cause to be filed with the Commission any periodic reports required to be filed
under the provisions of the Exchange Act, and the rules and regulations of the
Commission thereunder.

31

          Section
3.14 Reports to the Rating Agency. Servicer shall deliver to each Rating
Agency a copy of all reports or notices furnished or delivered pursuant to this
Article and a copy of any amendments, supplements or modifications to this
Agreement and any other information reasonably requested by such Rating Agency
to monitor this transaction.

          Section
3.15 Servicer Expenses. Servicer shall be required to pay all expenses
incurred by it in connection with its activities hereunder, including fees and
disbursements of the Trustee, independent accountants, taxes imposed on
Servicer and expenses incurred in connection with distributions and reports to
Holders.

ARTICLE IV

DISTRIBUTIONS; RESERVE ACCOUNT; STATEMENTS TO HOLDERS

          Section 4.1
Establishment of Accounts. (a) Trustee, on behalf of the Trust and for
the benefit of the Holders, shall establish and maintain in the name of Trustee
one or more segregated Eligible Deposit Accounts (collectively, the “Collection
Account”), bearing a designation clearly indicating that the funds
deposited therein are held for the benefit of the Holders. Trustee, on behalf
of the Trust and for the benefit of the Class A Holders, shall establish and
maintain in the name of Trustee an Eligible Deposit Account (the “Class A
Distribution Account”), bearing a designation clearly indicating that the
funds deposited therein are held for the benefit of the Class A Holders.
Trustee, on behalf of the Trust and for the benefit of the Class B Holders,
shall establish and maintain in the name of Trustee an Eligible Deposit Account
(the “Class B Distribution Account”), bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Class B Holders. Trustee on behalf of the Trust and for the benefit of the
Holders, shall establish and maintain in the name of Trustee an Eligible
Deposit Account (the “Payahead Account”), bearing a designation clearly
indicating that the funds therein are held for the benefit of the Holders. The
Collection Account, the Class A Distribution Account, the Class B Distribution
Account, and the Payahead Account shall be initially established and maintained
with the trust department of Trustee.

	
  

 	
  

 
	
  

 	
           (b) Funds on deposit in the Collection Account, the Class A
 Distribution Account, the Class B Distribution Account, and the Payahead
 Account shall be invested by Trustee in Eligible Investments selected by
 Servicer (pursuant to standing instructions or otherwise) and confirmed in
 writing by Servicer to Trustee; provided that, it is understood and
 agreed that neither Servicer nor Trustee shall be liable for any loss arising
 from such investment in Eligible Investments. All such Eligible Investments
 shall be held by Trustee for the benefit of the beneficiaries of the
 applicable Account; provided that on each Distribution Date
 all interest and other investment income (net of losses and investment
 expenses) on funds on deposit therein shall be withdrawn from the Accounts at
 the written direction of Servicer and shall be paid to Servicer and shall not
 be available or otherwise subject to any claims or rights of the Holders.
 Other than as permitted by each Rating Agency, funds on deposit in the
 Accounts with respect to any Collection Period or Distribution Date shall be
 invested only in Eligible Investments that, except for money market funds,
 will mature so that such funds will be available at the close of business on
 the related Deposit Date. 

 

32

	
  

 	
  

 
	
  

 	
 Funds deposited in an Account on a Deposit Date which immediately
 precedes a Distribution Date upon the maturity of any Eligible Investments
 are not required to be (but may be) invested overnight. No Eligible
 Investment with a stated maturity shall be disposed of prior to that maturity
 unless a default occurs with respect to that Eligible Investment and Servicer
 directs Trustee in writing to dispose of it.

 
	
  

 	
  

 
	
  

 	
           (c) Trustee shall possess all right, title and interest in all funds
 on deposit from time to time in the Accounts and in all proceeds thereof
 (excluding all income thereon) and all such funds, investments and proceeds
 shall be part of the Trust Property. The Accounts shall be under the sole
 dominion and the exclusive custody and control of Trustee, and Trustee shall
 have sole signature authority with respect thereto. If, at any time, any of
 the Accounts ceases to be an Eligible Deposit Account, Trustee (or Servicer
 on its behalf) shall within 10 Business Days (or such longer period as to
 which each Rating Agency may consent) establish a new Account as an Eligible
 Deposit Account and shall transfer any cash and/or any investments that are
 in the existing Account which is no longer an Eligible Deposit Account to
 such new Account.

 

          Section 4.2
Collections. (a) Subject to the provisions of the succeeding sentence
and of subsections (b) and (c), Servicer shall remit to the
Collection Account all payments (other than amounts constituting Supplemental
Servicing Fees) by or on behalf of the Obligors on the Receivables, including
all Liquidation Proceeds received by Servicer during any Collection Period, as
soon as practicable, but in no event after the close of business on the second
Business Day, after identification thereof. Subject to the provisions of subsections
(b) and (c), on the Closing Date, Servicer shall deposit in the
Collection Account all payments by or on behalf of the Obligors on the
Receivables received by Servicer after the Cutoff Date and on or prior to the
second Business Day immediately preceding the Closing Date.

	
  

 	
  

 
	
  

 	
           (b)
 Notwithstanding the provisions of subsection (a), if Bank is the
 Servicer and (i)
 [          ] shall have the
 Required Rating or (ii) Trustee otherwise shall have received written notice
 from each of the Rating Agencies that the then outstanding rating on the
 Class A Certificates and the Class B Certificates would not be lowered or
 withdrawn as a result, Servicer may deposit all amounts referred to in subsection
 (a) for any Collection Period into the Collection Account not later than
 the close of business on the Deposit Date with respect to such Collection
 Period; provided
 that if (x) a Servicer Termination Event has occurred and is continuing, (y)
 Servicer has been terminated as such pursuant to Section 8.1 or (z)
 [          ] ceases to have
 the Required Rating, Servicer shall deposit such amounts (including any amounts
 then being held by Servicer) into the Collection Account as provided in Section
 4.2(a). Notwithstanding the foregoing, the provisions of the proviso to
 the preceding sentence shall not be applicable to a successor Servicer solely
 by reason of the occurrence of an event specified in clauses (x), (y)
 and (z) of such proviso with respect to the outgoing Servicer. Pending
 the deposit of the amounts referred to in subsection (a) into the
 Collection Account, such amounts may be employed by Servicer at its own risk
 and for its own benefit and need not be segregated from Servicer’s own funds.
 

 

33

	
  

 	
  

 
	
  

 	
 Any losses resulting from Servicer’s actions shall be borne
 exclusively by Servicer. Servicer shall promptly notify Trustee in writing if
 [          ] shall obtain
 or lose the Required Rating.

 
	
  

 	
  

 
	
  

 	
           (c)
 Notwithstanding the provisions of subsections (a) and (b),
 Servicer may retain, or will be entitled to be reimbursed, from amounts
 otherwise payable into, or on deposit in, the Collection Account with respect
 to a Collection Period any amounts previously deposited in the Collection
 Account but later determined to have resulted from mistaken deposits or
 postings or checks returned for insufficient funds, in each case, with
 respect to which Servicer has not been previously reimbursed hereunder. The
 amount to be retained or reimbursed hereunder shall not be included in
 Collections with respect to the related Distribution Date.

 
	
  

 	
  

 
	
  

 	
           (d) With
 respect to each Precomputed Receivable, collections and payments by or on
 behalf of an obligor (other than any amounts constituting Supplemental
 Servicing Fees) for each Collection Period shall be applied to the scheduled
 payment on such Precomputed Receivable for such Collection Period.

 

To the extent such collections and payments on a Precomputed Receivable
during a Collection Period exceed the scheduled payment on such Precomputed
Receivable and are insufficient to prepay the Precomputed Receivable in full,
collections shall be treated as Payaheads until such later Collection Period as
such Payaheads may be transferred to the Collection Account and applied either
to the scheduled payments due or to prepay the Precomputed Receivable in full
in accordance with Section 4.5.

          Section 4.3
[RESERVED].

          Section 4.4
Additional Deposits; Net Deposits. (a) On or prior to each Deposit Date,
Servicer shall remit to the Collection Account, in next-day or immediately
available funds, the aggregate Purchase Amounts of the Receivables to be
purchased by it under an obligation that arose during the preceding Collection
Period pursuant to Section 2.4, 3.7 or 10.2, respectively.

	
  

 	
  

 
	
  

 	
           (b)
 Servicer may make the remittances to be made by it pursuant to this Article
 IV net of amounts to be distributed to it pursuant to Section 4.5
 (but subject to the priorities set forth therein), for so long as (i) no
 Servicer Termination Event has occurred and is continuing and (ii) Servicer
 has not been terminated as such pursuant to Section 8.1; provided
 that Servicer shall account for all of such amounts in the related Servicer’s
 Report as if such amounts were deposited and distributed separately; and provided
 that, if an error is made by Servicer in calculating the amount to be
 deposited or retained by it and a shortfall in the amount deposited in the
 Collection Account results, Servicer shall make a payment of the deficiency
 to the Collection Account, immediately upon becoming aware, or receiving
 notice from Trustee, of such error.

 

34

          Section 4.5
Distributions. (a) On each Determination Date, Servicer shall calculate
all amounts required to determine the amounts to be deposited on the related
Distribution Date in the Class A Distribution Account and the Class B
Distribution Account which calculations shall be set forth in the Servicer’s
Report delivered to Trustee on or before such Determination Date.

	
  

 	
  

 	
  

 
	
  

 	
           (b) On or
 before each Distribution Date, Servicer shall instruct Trustee in writing
 (based on the information contained in Servicer’s Report delivered on the
 related Determination Date pursuant to Section 3.9) to, and the
 Trustee shall:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i) withdraw from the Payahead Account and deposit in the Collection
 Account, in immediately available funds, (x) with respect to each Precomputed
 Receivable for which the payments made by or on behalf of the obligor for the
 related Collection Period are less than the scheduled payment for the related
 Collection Period, the amount of Payaheads, if any, made with respect to such
 Receivable which, when added to the amount of such payments, is equal to the
 amount of such scheduled payment, (y) with respect to each Precomputed
 Receivable for which prepayments insufficient to prepay the Receivable in
 full have been made by or on behalf of the Obligor for the related Collection
 Period, the amount of Payaheads, if any, made with respect to such Receivable
 which, when added to the amount of such prepayments, is equal to an amount
 sufficient to prepay such Receivable in full, and (z) the amount of all
 Payaheads, if any, made with respect to any Purchased Receivable; and

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii) withdraw from the Collection Account and deposit in the Payahead
 Account (or receive from Servicer, which will remit to the Trustee for
 deposit in the Payahead Account, as the case may be), in immediately
 available funds, the aggregate amount of collections on Precomputed
 Receivables treated as Payaheads pursuant to Section 4.2 for the
 Collection Period related to such Distribution Date.

 
	
  

 	
  

 	
  

 
	
  

 	
           (c) On
 each Distribution Date, based on the related Servicer’s Report, Trustee will
 make the following deposits and distributions from the Collection Account by
 _____________ a.m. (___________, ________ time), to the extent of the sum of
 Available Interest and any Available Reserve Amount (and, in the case of
 shortfalls in the Class A Interest Distributable Amount occurring under clause
 (ii), the Class B Percentage of Available Principal to the extent of such
 shortfalls), in the following priority:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i) to Servicer, any unpaid Servicing Fee for the related Collection
 Period and all unpaid Servicing Fees from prior Collection Periods;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii) to the Class A Distribution Account, the Class A Interest
 Distributable Amount for such Distribution Date; and

 

35

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii) to the Class B Distribution Account, the Class B Interest
 Distributable Amount for such Distribution Date.

 
	
  

 	
  

 	
  

 
	
 On each Distribution Date, based on the related Servicer’s Report,
 Trustee will make the following deposits and distributions, to the extent of
 the portion of Available Principal, Available Interest and Available Reserve
 Amount remaining after the application of clauses (i), (ii) and
 (iii), in the following priority:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i) to the Class A Distribution Account, the Class A Principal
 Distributable Amount for such Distribution Date;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii) to the Class B Distribution Account, the Class B Principal
 Distributable Amount for such Distribution Date;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii) to the Reserve Account, any amounts remaining, until the amount
 on deposit in the Reserve Account equals the Specified Reserve Account
 Balance;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iv) to Servicer, the Additional Servicing for such Distribution
 Date; and

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (v) to the Transferor, any amounts remaining.

 
	
  

 	
  

 
	
  

 	
           (d) On
 each Distribution Date, all amounts on deposit in the Class A Distribution
 Account will be distributed to the Class A Holders (determined as of the
 related Record Date) by Trustee and all amounts on deposit in the Class B
 Distribution Account will be distributed to the Class B Holders (determined
 as of the related Record Date) by Trustee. Except as provided in Section
 10.1, payments under this paragraph shall be made to the Holders by check
 mailed by Trustee to each Holder’s respective address of record (or, in the
 case of Certificates registered in the name of a Clearing Agency, or its
 nominee, by wire transfer of immediately available funds). To the extent that
 Trustee is required to wire funds to the Holders from the Class A
 Distribution Account or the Class B Distribution Account, as applicable, it
 shall request the bank maintaining the Class A Distribution Account or the
 Class B Distribution Account, as applicable, to make a wire transfer of the
 amount to be distributed and the bank maintaining the Class A Distribution
 Account or the Class B Distribution Account, as applicable, shall promptly
 deliver to Trustee a confirmation of such wire transfer. To the extent that
 Trustee is required to make payments to Holders by check hereunder, it shall
 request the bank maintaining the Class A Distribution Account or the Class B
 Distribution Account, as applicable, to provide it with a supply of checks to
 make such payments. The bank shall, if a request is made by Trustee for a
 wire transfer by _______________ a.m. (_______________, time) on any
 Distribution Date, wire such funds in accordance with such instructions by
 _______________ a.m. (_______________, time) on such Distribution Date, and
 it will otherwise act in compliance with the provisions of this paragraph and
 the other provisions of this Agreement applicable to it as the bank
 maintaining the 

 

36

	
  

 	
  

 
	
  

 	
 Class A Distribution Account or the Class B Distribution Account, as
 applicable. Servicer shall take all necessary action (including requiring an
 agreement to such effect) to ensure that any bank maintaining the Class A
 Distribution Account or the Class B Distribution Account, as applicable,
 agrees to comply, and complies, with the provisions of this paragraph and the
 other provisions of this Agreement applicable to it as the bank maintaining
 the Class A Distribution Account or the Class B Distribution Account, as
 applicable.

 
	
  

 
	
           Section
 4.6 Reserve Account. (a) Servicer shall establish and maintain in the
 name of the Trustee an Eligible Deposit Account (the “Reserve Account”).
 The Reserve Account shall be initially established and maintained with the
 Trustee (the “Securities Intermediary”). On the Closing Date, Servicer
 shall deposit or cause to be deposited in the Reserve Account an amount equal
 to the Reserve Account Initial Deposit.

 
	
  

 
	
  

 	
           (b)
 Trustee shall, at the written direction of Administrator, direct the
 Securities Intermediary to invest funds on deposit in the Reserve Account in
 Eligible Investments selected by Administrator and confirmed in writing by
 Administrator to Trustee; provided that it is understood and
 agreed that none of Trustee, Securities Intermediary or Administrator shall
 be liable for any loss arising from such investment in Eligible Investments.
 Funds on deposit in the Reserve Account shall be invested in Eligible
 Investments that will mature so that all such funds will be available at the
 close of business on each Deposit Date; provided that to the extent permitted by
 the Rating Agencies following written request by Administrator, funds on
 deposit in the Reserve Account may be invested in Eligible Investments that
 mature later than the next Deposit Date. Funds deposited in the Reserve
 Account on a Deposit Date upon the maturity of any Eligible Investments are
 not required to be (but may be) invested overnight.

 
	
  

 	
  

 
	
  

 	
           (c) On
 each Distribution Date, any amounts on deposit in the Collection Account with
 respect to the preceding Collection Period after payments to Servicer, the
 Class A Distribution Account and the Class B Distribution Account have been
 made will be deposited into the Reserve Account until the amount of the
 Reserve Account is equal to the Specified Reserve Account Balance.

 
	
  

 	
  

 
	
  

 	
           (d) The
 Reserve Account shall be under the sole custody and control of Trustee. If,
 at any time, the Reserve Account ceases to be an Eligible Deposit Account,
 Trustee shall within 10 Business Days (or such longer period, not to exceed
 30 calendar days, as to which each Rating Agency may consent) establish a new
 Reserve Account as an Eligible Deposit Account and shall transfer any cash and/or
 any investments that are in the existing account which is no longer an
 Eligible Deposit Account to such new Reserve Account.

 
	
  

 	
  

 
	
  

 	
           (e) On
 each Distribution Date, the amount available in the Reserve Account (the “Available
 Reserve Amount”) will equal the lesser of (i) the amount on deposit in
 the Reserve Account (exclusive of investment earnings) and (ii) the Specified
 Reserve Account Balance. On each Deposit Date, Trustee will 

 

37

	
  

 	
  

 
	
  

 	
 withdraw funds from the Reserve Account to the extent that (A) the
 sum of the amounts required to be distributed to Holders and the accrued and
 unpaid Servicing Fees payable to Servicer on such Distribution Date exceeds
 (B) the amount on deposit in the Collection Account with respect to the
 preceding Collection Period (net of net investment income). The aggregate
 amount to be withdrawn from the Reserve Account on any Deposit Date shall not
 exceed the Available Reserve Amount with respect to the related Distribution
 Date. Trustee will deposit the proceeds of such withdrawal into the
 Collection Account on or before such Distribution Date with respect to which
 such withdrawal was made.

 
	
  

 	
  

 
	
  

 	
           (f)
 Amounts on deposit in the Reserve Account will be released to Transferor on
 each Distribution Date to the extent that the amount credited to the Reserve
 Account would exceed the Specified Reserve Account Balance. Upon any
 distribution to Transferor of amounts from the Reserve Account, the Holders
 will not have any rights in, or claims to, such amounts. Amounts distributed
 to Transferor from the Reserve Account in accordance with this Section shall
 not be available under any circumstances to the Trust, Trustee or the Holders
 and Transferor shall in no event thereafter be required to refund any such
 distributed amounts.

 
	
  

 	
  

 
	
  

 	
           (g)
 Investment earnings attributable to the Reserve Account Property and proceeds
 therefrom shall be held by Trustee for the benefit of Transferor. Investment
 earnings attributable to the Reserve Account Property shall not be available
 to pay the distributions provided for in Section 4.5 and shall not
 otherwise be subject to any claims or rights of the Holders or Servicer.
 Trustee shall cause all investment earnings attributable to the Reserve
 Account to be distributed on each Distribution Date to Transferor.

 
	
  

 	
  

 
	
  

 	
           (h)
 Transferor may at any time, without consent of Holders, sell, transfer,
 convey or assign in any manner its rights to and interests in distributions
 from the Reserve Account provided that (i) the Rating Agencies
 confirm in writing that such action will not result in a reduction or
 withdrawal of the rating of the Class A Certificates or the Class B
 Certificates, (ii) Transferor provides to Trustee an Opinion of Counsel from
 independent counsel that such action will not cause Trust to be classified as
 an association (or publicly traded partnership) taxable as a corporation for
 federal income tax purposes and (iii) such transferee or assignee agrees in
 writing to take positions for federal income tax purposes consistent with the
 federal income tax positions agreed to be taken by Transferor.

 
	
  

 	
  

 
	
           Section
 4.7 Statements to Holders. On each Distribution Date, Servicer shall
 provide to Trustee (with a copy to each Rating Agency) written instructions
 for Trustee to forward to each Holder of record a statement setting forth at
 least the following information as to the Certificates to the extent
 applicable:

 
	
  

 	
  

 
	
  

 	
           (a) the
 amount of the distribution allocable to principal on the Class A Certificates
 and the Class B Certificates;

 

38

	
  

 	
  

 
	
  

 	
           (b) the
 amount of the distribution allocable to interest on the Class A Certificates
 and the Class B Certificates;

 
	
  

 	
  

 
	
  

 	
           (c) the
 amount of the Servicing Fee paid to Servicer with respect to the related
 Collection Period;

 
	
  

 	
  

 
	
  

 	
           (d) the
 Class A Certificate Balance, the Class A Pool Factor, the Class B Certificate
 Balance and the Class B Pool Factor as of such Distribution Date, after
 giving effect to payments allocated to principal reported under clause (a);

 
	
  

 	
  

 
	
  

 	
           (e) the
 Pool Balance as of the close of business on the last day of the preceding
 Collection Period;

 
	
  

 	
  

 
	
  

 	
           (f) the
 amount of Defaulted Receivables and Liquidation Proceeds, if any, for such
 Collection Period;

 
	
  

 	
  

 
	
  

 	
           (g) the
 aggregate Purchase Amount of Receivables purchased by Servicer with respect
 to the related Collection Period;

 
	
  

 	
  

 
	
  

 	
           (h) the
 Class A Interest Carryover Shortfall, the Class B Interest Carryover
 Shortfall, the Class A Principal Carryover Shortfall and the Class B
 Principal Carryover Shortfall, if any, in each case as applicable to each of
 the Class A Certificates and the Class B Certificates, and the change in such
 amounts from the preceding statement;

 
	
  

 	
  

 
	
  

 	
           (i) the
 balance of the Reserve Account on such Distribution Date, after giving effect
 to changes therein on such Distribution Date;

 
	
  

 	
  

 
	
  

 	
           (j) the
 Specified Reserve Account Balance as of the close of business on such
 Distribution Date; and

 
	
  

 	
  

 
	
  

 	
           (k) the
 number, and aggregate principal amount outstanding, of Receivables past due
 31-60, 61-90 and over 90 days.

 
	
  

 	
  

 
	
 Each amount set forth pursuant to clauses (a), (b) and (h)
 shall be expressed in the aggregate and as a dollar amount per $1,000 of
 original denomination of a Certificate.

 
	
  

 	
  

 
	
           Within a
 reasonable period of time after the end of each calendar year, but not later
 than the latest date permitted by law, Servicer shall furnish a report to the
 Trust and Trustee shall furnish, or cause to be furnished, to each Person who
 at any time during such calendar year shall have been a Holder, a statement
 based upon such report as to the sum of the amounts determined in clauses
 (a) and (b) above for such calendar year, or, in the event such
 Person shall have been a Holder during a portion of such calendar year, for
 the applicable portion of such year, and such other information as is
 available to Servicer as Servicer deems necessary or desirable to enable the
 Holders to prepare their federal income tax returns. The obligation of the
 Trustee set forth in this paragraph shall be deemed to have been satisfied to
 the extent that substantially comparable information shall be provided
 pursuant to any requirement of the Code.

 

39

ARTICLE V

THE CERTIFICATES

          Section 5.1
The Certificates. Trustee shall, upon written order or request signed in
the name of Seller by one of its officers authorized to do so and delivered to
an Authorized Officer of Trustee, execute on behalf of the Trust, authenticate
and deliver the Certificates to or upon the order of Seller in the aggregate
principal amount and denominations as set forth in such written order or
request. The Certificates shall be issuable in denominations of $1,000 and
integral multiples thereof; provided that one Class A Certificate and
one Class B Certificate may be issued in a denomination that represents the
residual amount of the original Class A Certificate Balance and the Original
Class B Certificate Balance, respectively. Upon initial issuance, the Class A
Certificates and the Class B Certificates shall be in the form of Exhibit A
and Exhibit B, respectively, which are incorporated by reference herein,
and shall be issued as provided in Section 5.8, in an aggregate amount
equal to the Original Class A Certificate Balance and the Original Class B
Certificate Balance, respectively. The Certificates shall be executed by
Trustee on behalf of the Trust by manual or facsimile signature of an
Authorized Officer of Trustee under Trustee’s seal imprinted thereon and
attested by the manual or facsimile signature of an Authorized Officer of
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 valid and binding obligations of the
Trust, notwithstanding that such individuals shall have ceased to be so
authorized prior to the authentication and delivery of such Certificates or did
not hold such offices at the date of such Certificates.

          Section 5.2
Authentication of Certificates. No Certificate shall entitle the Holder
thereof to any benefit under this Agreement, 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 the form of Certificates attached hereto
as Exhibit A and Exhibit B, executed by Trustee by manual
signature. Such authentication shall constitute conclusive evidence, and the
only evidence, that such Certificate has been duly authenticated and delivered
hereunder. All Certificates shall be dated the date of their authentication.

          Section 5.3
Registration of Transfer and Exchange of Certificates. Trustee shall
maintain, or cause to be maintained, at the office or agency to be maintained
by it in accordance with Section 5.7, a Certificate Register in which,
subject to such reasonable regulations as it may prescribe, Trustee shall
provide for the registration of Certificates and of transfers and exchanges of
Certificates as herein provided. Upon surrender for registration of transfer of
any Class A Certificate or Class B Certificate at such office or agency,
Trustee shall execute, authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Class A Certificates or Class B
Certificates, as the case may be, in authorized denominations of a like
aggregate amount. At the option of a Holder, Class A Certificates or Class B
Certificates may be exchanged for other Class A Certificates or Class B Certificates,
as the case may be, of authorized denominations of a like aggregate amount at
the office or agency maintained by Trustee in accordance with Section 5.7.
Every Certificate presented or surrendered for registration of transfer or
exchange shall be accompanied by a written instrument of transfer duly executed
by the Holder and in a form satisfactory to Trustee. No service charge 

40

shall be made for any registration of transfer or exchange of
Certificates, but Trustee 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. All Certificates surrendered for registration of
transfer or exchange shall be cancelled and disposed of in accordance with the
customary procedures of Trustee.

          The Class B
Certificates and any beneficial interest in such Class B Certificates may not
be acquired (a) with the assets of an employee benefit plan (as defined in Section
3(3) of ERISA) that is subject to the provisions of Title I of ERISA, (b)
by a plan described in Section 4975(e)(1) of the Code or (c) by any entity
whose underlying assets include plan assets by reason of a plan’s investment in
the entity. By accepting and holding a Class B Certificate or interest therein,
the Holder thereof or Class B Certificate Owner thereof shall be deemed to have
represented and warranted that it is not subject to the foregoing limitation.

          The
preceding provisions of this Section 5.3 notwithstanding, Trustee shall
not make and need not register any transfer or exchange of Certificates for a
period of fifteen (15) days preceding any Distribution Date for any payment
with respect to the Certificates.

          Section 5.4
Mutilated, Destroyed, Lost or Stolen Certificates. If (a) any mutilated
Class A Certificate or Class B Certificate shall be surrendered to Trustee, or
if Trustee shall receive evidence to its satisfaction of the destruction, loss
or theft of any Class A Certificate or Class B Certificate and (b) there shall
be delivered to Trustee such security or indemnity as may be required to save
Trustee harmless, then in the absence of notice that such Class A Certificate
or Class B Certificate shall have been acquired by a bona fide purchaser,
Trustee shall execute, authenticate and deliver, in exchange for or in lieu of
any such mutilated, destroyed, lost or stolen Class A Certificate or Class B
Certificate, a new Class A Certificate or Class B Certificate of like tenor and
denomination. In connection with the issuance of any new Certificate under this
Section 5.4, Trustee may require the payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
herewith. Any replacement Certificate issued pursuant to this Section 5.4
shall constitute conclusive evidence of ownership in the Trust, as if
originally issued, whether or not the lost, stolen or destroyed Certificate
shall be found at any time.

          Section 5.5
Persons Deemed Owners. Prior to due presentation of a Certificate for
registration of transfer, Trustee may treat the Person in whose name any
Certificate shall be registered as the owner of such Certificate for the
purpose of receiving distributions pursuant to Section 4.5 and for all
other purposes, and Trustee shall not be bound by any notice to the contrary.

          Section 5.6
Access to List of Holders’ Names and Addresses. Trustee shall furnish or
cause to be furnished to Servicer, within fifteen days after receipt by Trustee
of a request therefor from Servicer in writing, in such form as Servicer may
reasonably require, a list of the names and addresses of the Holders as of the
most recent Record Date. If Definitive Certificates have been issued, Trustee,
upon written request of (a) three or more Holders or (b) one or more Holders
evidencing not less than 25% of the aggregate outstanding principal balance of
the Certificates, will, within five Business Days after the receipt of such
request, afford such Holders access during normal business hours to the most
current list of Holders for purposes of 

41

communicating with other Holders with respect to their rights under the
Agreement. Each Holder, by receiving and holding a Certificate, shall be deemed
to have agreed not to hold Seller, Servicer or Trustee accountable by reason of
the disclosure of such Holder’s name and address, regardless of the source from
which such information was derived.

          Section 5.7
Maintenance of Office or Agency. Trustee shall maintain, or cause to be
maintained, at its expense, in _________, an office or agency where
Certificates may be surrendered for registration of transfer or exchange and
where notices and demands to or upon Trustee in respect of the Certificates and
this Agreement may be served. Trustee initially designates its office located
at ________ for such purposes. Trustee shall give prompt written notice to
Servicer and to Holders of any change in the location of any such office or
agency.

          Section 5.8
Book Entry Certificates. Upon original issuance, the Class A
Certificates and the Class B Certificates, other than the Class A Certificate
representing the residual amount of the Original Class A Certificate Balance
and the Class B Certificate representing the residual amount of the Original Class
B Certificate Balance, which shall be issued upon the written order of Seller,
shall be issued in the form of one or more typewritten Certificates
representing the Book Entry Certificates, to be delivered to the initial
Clearing Agency, by, or on behalf of, Seller. Such Certificates shall initially
be registered on the Certificate Register in the name of Cede & Co.,
the nominee of the initial Clearing Agency, and no Certificate Owner will
receive a Definitive Certificate representing such Certificate Owner’s interest
in the Class A Certificates or the Class B Certificates, as the case may be,
except as provided in Section 5.10. Unless and until definitive, fully
registered Certificates (“Definitive Certificates”) have been issued to
the Holders pursuant to Section 5.10:

	
  

 	
  

 
	
  

 	
           (a) the
 provisions of this Section 5.8 shall be in full force and effect;

 
	
  

 	
  

 
	
  

 	
           (b)
 Seller, Servicer and Trustee may deal with the Clearing Agency for all
 purposes (including the making of distributions on the Certificates and the
 taking of actions by the Holders) as the authorized representative of the
 Certificate Owners;

 
	
  

 	
  

 
	
  

 	
           (c) to
 the extent that the provisions of this Section 5.8 conflict with any
 other provisions of this Agreement, the provisions of this Section 5.8
 shall control;

 
	
  

 	
  

 
	
  

 	
           (d) the
 rights of Certificate Owners shall be exercised only through the Clearing
 Agency and shall be limited to those established by law, the rules,
 regulations and procedures of the Clearing Agency and agreements between such
 Certificate Owners and the Clearing Agency and all references in this
 Agreement to actions by Holders shall refer to actions taken by the Clearing
 Agency upon instructions from the Clearing Agency Participants, and all
 references in this Agreement to distributions, notices, reports and
 statements to Holders shall refer to distributions, notices, reports and
 statements to the Clearing Agency or its nominee, as registered holder of the
 Certificates, as the case may be, for distribution to Certificate Owners in
 accordance with the rules, regulations and procedures of the Clearing Agency;
 and

 

42

	
  

 	
  

 
	
  

 	
           (e)
 pursuant to the Depository Agreement, the initial Clearing Agency will make
 book-entry transfers among the Clearing Agency Participants and receive and
 transmit distributions of principal and interest on the Certificates to the
 Clearing Agency Participants, for distribution by such Clearing Agency
 Participants to the Certificate Owners or their nominees.

 

          For
purposes of any provision of this Agreement requiring or permitting actions
with the consent of, or at the direction of, Holders of Certificates evidencing
specified percentages of the aggregate outstanding principal balance of such
Certificates, such direction or consent may be given by Certificate Owners
having interests in the requisite percentage, acting through the Clearing
Agency.

          Section 5.9
Notices to Clearing Agency. Whenever notice or other communication to
the Holders is required under this Agreement unless and until Definitive
Certificates shall have been issued to Certificate Owners pursuant to Section
5.10, Trustee shall give all such notices and communications specified
herein to be given to Holders to the Clearing Agency.

          Section
5.10 Definitive Certificates. If (a) (i) Servicer advises Trustee in
writing that the Clearing Agency is no longer willing or able properly to
discharge its responsibilities under the Depository Agreement and (ii) Trustee
or Servicer is unable to locate a qualified successor, (b) Servicer, at its
option, advises Trustee in writing that it elects to terminate the book-entry
system through the Clearing Agency or (c) after the occurrence of a Servicer
Termination Event, Certificate Owners representing in the aggregate not less
than a majority of the aggregate outstanding principal balance of the
Certificates, advise Trustee and the Clearing Agency through the Clearing
Agency Participants in writing that the continuation of a book-entry system
through the Clearing Agency is no longer in the Certificate Owners’ best
interests, Trustee shall notify the Clearing Agency which shall be responsible
to notify the Certificate Owners of the occurrence of any such event and of the
availability of Definitive Certificates to Certificate Owners requesting the
same. Upon surrender to Trustee by the Clearing Agency of the Certificates
registered in the name of the nominee of the Clearing Agency, accompanied by
re-registration instructions from the Clearing Agency for registration, Trustee
shall execute, on behalf of the Trust, authenticate and deliver Definitive
Certificates in accordance with such instructions. Seller shall arrange for,
and will bear all costs of, the printing and issuance of such Definitive
Certificates. Neither Seller, Servicer nor Trustee shall be liable for any
delay in delivery of such instructions and may conclusively rely on, and shall
be protected in relying on, such instructions. Upon the issuance of Definitive
Certificates, Trustee shall recognize the Holders of the Definitive
Certificates as Holders hereunder.

ARTICLE VI

SELLER

          Section 6.1
Representations and Warranties of Seller. Seller makes the following
representations and warranties, on which Trustee relies in accepting the
Receivables and the other Trust Property in trust and executing and
authenticating the Certificates. Such 

43

representations are made as of the execution and delivery of this
Agreement, but shall survive the sale, transfer and assignment of the
Receivables and the other Trust Property to the Trust.

	
  

 	
  

 
	
  

 	
           (a) Organization
 and Good Standing. Seller has been duly organized and is validly existing
 as a Delaware limited liability company in good standing under the laws of
 the State of Delaware, with the power and authority to own its properties and
 to conduct its business as such properties are presently owned and such
 business is presently conducted and had at all relevant times, and has, full
 power, authority and legal right to acquire, own and sell the Receivables and
 the other Trust Property.

 
	
  

 	
  

 
	
  

 	
           (b) Power
 and Authority. Seller has the power, authority and legal right to execute
 and deliver this Agreement and the Related Agreements to which it is a party
 and to carry out their respective terms and to sell and assign the property
 to be sold and assigned to and deposited with Trustee as Trust Property; and
 the execution, delivery and performance of this Agreement and the Related
 Agreements to which it is a party have been duly authorized by Seller by all
 necessary limited liability company action.

 
	
  

 	
  

 
	
  

 	
           (c) No
 Consent Required. No approval, authorization, consent, license or other
 order or action of, or filing or registration with, any governmental
 authority, bureau or agency is required in connection with Seller’s
 execution, delivery or performance of this Agreement or the Related
 Agreements to which Seller is a party or the consummation of the transactions
 contemplated hereby or thereby, other than (i) as may be required under the
 blue sky or securities laws of any State or the Securities Act of 1933, as
 amended, and (ii) the filing of UCC financing statements.

 
	
  

 	
  

 
	
  

 	
           (d) Valid
 Sale; Binding Obligation. Seller intends this Agreement to effect a valid
 sale, transfer, and assignment of the Receivables and the other Trust
 Property conveyed by Seller to the Trust hereunder, enforceable against
 creditors of and purchasers from Seller; and each of this Agreement and the
 Related Agreements to which it is a party constitutes a legal, valid and
 binding obligation of Seller, enforceable against Seller in accordance with
 its respective terms, subject, as to enforceability, to applicable
 bankruptcy, insolvency, reorganization, conservatorship, receivership,
 liquidation and other similar laws affecting enforcement of the rights of
 creditors generally and to equitable limitations on the availability of
 specific remedies.

 
	
  

 	
  

 
	
  

 	
           (e) No
 Violation. The execution, delivery and performance by Seller of this
 Agreement and the Related Agreements to which it is a party and the
 consummation of the transactions contemplated hereby and thereby will not
 conflict with, result in any material breach of any of the terms and
 provisions of, constitute (with or without notice or lapse of time) a
 material default under or result in the creation or imposition of any Lien
 upon any of its material properties pursuant to the terms of, (i) the organic
 documents of Seller, (ii) any material indenture, contract, lease, mortgage,
 deed of trust or other instrument or 

 

44

	
  

 	
  

 
	
  

 	
 agreement to which Seller is a party or by which Seller is bound, or
 (iii) any law, order, rule or regulation applicable to Seller of any federal
 or state regulatory body, any court, administrative agency, or other
 governmental instrumentality having jurisdiction over Seller.

 
	
  

 	
  

 
	
  

 	
           (f) No
 Proceedings. There are no proceedings or investigations pending, or, to
 the knowledge of Seller, threatened, before any court, regulatory body,
 administrative agency, or other tribunal or governmental instrumentality having
 jurisdiction over Seller or its properties: (i) asserting the invalidity of
 this Agreement or any Related Agreement, (ii) seeking to prevent the issuance
 of the Certificates or the consummation of any of the transactions
 contemplated by this Agreement or any Related Agreement, (iii) seeking any
 determination or ruling that might materially and adversely affect the
 performance by Seller of its obligations under, or the validity or
 enforceability of, this Agreement or any Related Agreement or (iv) that may
 materially and adversely affect the federal or state income, excise,
 franchise or similar tax attributes of the Certificates.

 
	
  

 	
  

 
	
  

 	
           (g) Chief
 Executive Office. The chief executive office of Seller is
 _______________.

 

          Section 6.2
Merger or Consolidation of, or Assumption of the Obligations of, Seller.
Any Person (a) into which Seller may be merged or consolidated, (b) that may
result from any merger, conversion or consolidation to which Seller is a party,
or (c) that may succeed by purchase and assumption to all or substantially all
of the business of Seller, where Seller in any of the foregoing cases is not
the surviving entity, which corporation or other entity shall execute an
agreement of assumption to perform every obligation of Seller under this
Agreement, shall be the successor to Seller hereunder without the execution or
filing of any document or any further act by any of the parties to this
Agreement; provided
that (x) Servicer shall have delivered to Trustee an Officer’s Certificate and
an Opinion of Counsel each stating that such merger, conversion, consolidation
or succession and such agreement of assumption comply with this Section, and
(y) Servicer shall have delivered to Trustee an Opinion of Counsel either (A)
stating that, in the opinion of such counsel, all financing statements and
continuation statements and amendments thereto have been executed and filed
that are necessary fully to preserve and protect the interest of Trustee in the
Receivables, and reciting the details of such filings, or (B) stating that, in
the opinion of such counsel, no such action shall be necessary to fully
preserve and protect such interest. Seller shall promptly inform Trustee and
each Rating Agency of any such merger, conversion, consolidation or purchase
and assumption, where Seller is not the surviving entity.

          Section 6.3
Limitation on Liability of Seller and Others. Seller and any director or
officer or employee or agent of Seller may rely in good faith on the advice of
counsel or on any document of any kind, prima facie properly executed and
submitted by any Person respecting any matters arising under this Agreement or
any Related Agreement (provided that such reliance shall not
limit in any way Seller’s obligations under Section 3.2). Seller shall
not be under any obligation to appear in, prosecute or defend any legal action
that shall not be incidental to its obligations under this Agreement, and that
in its opinion may involve it in any expense or liability.

45

ARTICLE VII

SERVICER

          Section 7.1
Representations and Warranties of Servicer. Servicer makes the following
representations and warranties on which Trustee relies in accepting the
Receivables and the other Trust Property in trust and in authenticating the
Certificates. These representations are made as of the Closing Date, but shall
survive the sale, transfer and assignment of the Receivables and the other
Trust Property to the Trust.

	
  

 	
  

 
	
  

 	
           (a) Organization
 and Good Standing. Servicer has been duly organized and is validly
 existing as a federally chartered savings association in good standing under
 the laws of the United States, with the power and authority to own its
 properties and to conduct its business as such properties are presently owned
 and such business is presently conducted, and had at all relevant times, and
 shall have, the power, authority and legal right to service the Receivables
 and the other Trust Property.

 
	
  

 	
  

 
	
  

 	
           (b) Due
 Qualification. Servicer shall have obtained all necessary licenses and
 approvals in all jurisdictions in which the ownership or lease of property or
 the conduct of its business (including the servicing of the Receivables as
 required by this Agreement) shall require such qualifications.

 
	
  

 	
  

 
	
  

 	
           (c) Power
 and Authority. Servicer has the power, authority and legal right to
 execute and deliver this Agreement and the Related Agreements to which it is
 a party and to carry out their respective terms; and the execution, delivery
 and performance of this Agreement and the Related Agreements to which it is a
 party have been duly authorized by Servicer by all necessary banking action.

 
	
  

 	
  

 
	
  

 	
           (d) No
 Consent Required. No approval, authorization, consent, license or other
 order or action of, or filing or registration with, any governmental
 authority, bureau or agency is required in connection with Servicer’s
 execution, delivery or performance of this Agreement, the Related Agreements
 to which Servicer is a party or the consummation of the transactions
 contemplated hereby or thereby, other than the filing of UCC financing
 statements.

 
	
  

 	
  

 
	
  

 	
           (e) Binding
 Obligation. Each of this Agreement and the Related Agreements to which it
 is a party constitutes a legal, valid and binding obligation of Servicer,
 enforceable against Servicer in accordance with its respective terms,
 subject, as to enforceability, to applicable bankruptcy, insolvency,
 reorganization, conservatorship, receivership, liquidation and other similar
 laws affecting enforcement of the rights of creditors of federally chartered
 savings associations generally and to equitable limitations on the
 availability of specific remedies.

 
	
  

 	
  

 
	
  

 	
           (f) No
 Violation. The execution, delivery and performance by Servicer of this
 Agreement and the Related Agreements to which it is a party and the
 consummation of the transactions contemplated hereby and thereby will not 

 

46

	
  

 	
  

 
	
  

 	
 conflict with, result in any material breach of any of the terms and
 provisions of, constitute (with or without notice or lapse of time) a material
 default under, or result in the creation or disposition of any Lien upon any
 of its material properties pursuant to the terms of, (i) the articles of
 association or bylaws of Servicer, (ii) any material indenture, contract,
 lease, mortgage, deed of trust or other instrument or agreement to which
 Servicer is a party or by which Servicer is bound, or (iii) any law, order,
 rule or regulation applicable to Servicer of any federal or state regulatory
 body, any court, administrative agency, or other governmental instrumentality
 having jurisdiction over Servicer.

 
	
  

 	
  

 
	
  

 	
           (g) No
 Proceedings. There are no proceedings or investigations pending, or, to
 Servicer’s knowledge, threatened, before any court, regulatory body,
 administrative agency, or tribunal or other governmental instrumentality
 having jurisdiction over Servicer or its properties: (i) asserting the
 invalidity of this Agreement, any Related Agreement or the Certificates, (ii)
 seeking to prevent the issuance of the Certificates or the consummation of
 any of the transactions contemplated by this Agreement or any Related
 Agreement, (iii) seeking any determination or ruling that might materially
 and adversely affect the performance by Servicer of its obligations under, or
 the validity or enforceability of, this Agreement, any Related Agreement or
 the Certificates, or (iv) that may materially and adversely affect the
 federal or state income, excise, franchise or similar tax attributes of the
 Certificates.

 

          Section 7.2
Indemnities of Servicer. (a) Servicer shall be liable in accordance
herewith only to the extent of the obligations specifically undertaken by
Servicer under this Agreement.

	
  

 	
  

 
	
  

 	
           (b)
 Servicer shall indemnify, defend and hold harmless Trustee, Seller, the
 Holders and any of the officers, directors, employees and agents of Trustee
 or Seller from any and all costs, expenses, losses, claims, damages and
 liabilities (including reasonable attorneys’ fees and expenses) to the extent
 arising out of, or imposed upon any such Person through, the gross
 negligence, willful misfeasance or bad faith (other than errors in judgment)
 of Servicer in the performance of its obligations and duties under this
 Agreement or in the performance of the obligations and duties of any
 subservicer under any subservicing agreement.

 
	
  

 	
  

 
	
  

 	
           (c)
 Servicer shall indemnify, defend and hold harmless Trustee and its officers,
 directors, employees and agents from and against any taxes that may at any
 time be asserted against any such Person with respect to the transactions
 contemplated in this Agreement or in the other Related Agreements, including
 any sales, gross receipts, general corporation, tangible or intangible
 personal property, privilege, or license taxes, or any taxes of any kind
 which may be asserted (but not including any Federal or other income taxes
 arising out of transactions contemplated by this Agreement and the other
 Related Agreements) against the Trust, and costs and expenses in defending
 against the same.

 

47

	
  

 	
  

 
	
  

 	
           (d)
 Servicer shall indemnify, defend and hold harmless Trustee, Seller and the
 Holders or any of the officers, directors, employees and agents of Trustee or
 Seller from any and all costs, expenses, losses, claims, damages and
 liabilities (including reasonable attorneys’ fees and expenses) to the extent
 arising out of or imposed upon any such Person as a result of any
 compensation payable to any subcustodian or subservicer (including any fees
 payable in connection with the release of any Receivable File from the
 custody of such subservicer or in connection with the termination of the
 servicing activities of such subservicer with respect to any Receivable)
 whether pursuant to the terms of any subservicing agreement or otherwise.

 
	
  

 	
  

 
	
  

 	
           (e)
 Servicer shall indemnify, defend and hold harmless Trustee, Seller and the
 Holders or any of the directors, officers, employees and agents of Trustee
 and Seller from and against any and all costs, expenses, losses, damages,
 claims and liabilities, including reasonable fees and expenses of counsel and
 expenses of litigation, arising out of or resulting from the use, ownership,
 or operation by Servicer or any Affiliate thereof of any Financed Vehicle.

 

Indemnification under this Section shall survive the resignation or
removal of Trustee and the termination of this Agreement and shall include
reasonable fees and expenses of counsel and other expenses of litigation. If
Servicer shall have made any indemnity payments pursuant to this Section and
the Person to or on behalf of whom such payments are made thereafter shall
collect any of such amounts from others, such Person shall promptly repay such
amounts to Servicer, without interest.

          Section 7.3
Merger or Consolidation of or Assumption of the Obligations of Servicer.
Any Person (i) into which the Servicer may be merged or consolidated, (ii)
resulting from any merger, conversion, or consolidation to which the Servicer
is a party, (iii) succeeding to the business of the Servicer or (iv) 50% or
more of the equity of which is owned, directly or indirectly, by the United
Services Automobile Association, which Person in any of the foregoing cases
executes an agreement of assumption to perform every obligation of the Servicer
under this Agreement, will be the successor to the Servicer under this
Agreement without the execution or filing of any paper or any further act on
the part of any of the parties to this Agreement. The Servicer shall provide
prior notice of the effective date of any merger, conversion, consolidation or
succession pursuant to this Section 6.3 to the Rating Agencies, the
Indenture Trustee and the Seller. The Servicer shall provide the Seller in
writing such information as reasonably requested by the Seller to comply with
its Exchange Act reporting obligations with respect to a successor Servicer.

          Section 7.4
Limitation on Liability of Servicer and Others. Neither Servicer nor any
of its directors, officers, employees or agents shall be under any liability to
the Trust or the Holders, except as provided under this Agreement, for any
action taken or for refraining from the taking of any action by Servicer or any
subservicer pursuant to this Agreement or for errors in judgment; provided
that this provision shall not protect Servicer or any such Person against any
liability that would otherwise be imposed by reason of willful misfeasance, bad
faith or gross negligence in the performance of duties (except for errors in
judgment) or by reason of reckless disregard of obligations and duties under
this Agreement. Servicer or any subservicer and any of 

48

their respective directors, officers, employees or agents may rely in
good faith on any document of any kind prima facie properly executed and
submitted by any Person respecting any matters arising under this Agreement.

          Except as
provided in this Agreement, Servicer shall not be under any obligation to
appear in, prosecute or defend any legal action that shall not be incidental to
its duties to service the Receivables in accordance with this Agreement, and
that in its opinion may involve it in any expense or liability; provided
that Servicer may (but shall not be required to) undertake any reasonable
action that it may deem necessary or desirable in respect of this Agreement and
the Related Agreements to protect the interests of the Holders under this
Agreement and the Related Agreements. In such event, the legal expense and
costs of such action and any liability resulting therefrom shall be expenses,
costs and liabilities of Servicer.

          Section 7.5
Bank Not To Resign as Servicer. Subject to the provisions of Section
7.3, Bank hereby agrees not to resign from the obligations and duties
hereby imposed on it as Servicer under this Agreement except upon determination
that the performance of its duties hereunder shall no longer be permissible
under applicable law or if such resignation is required by regulatory
authorities. Notice of any such determination permitting the resignation of
Bank as Servicer shall be communicated to Trustee at the earliest practicable
time (and, if such communication is not in writing, shall be confirmed in
writing at the earliest practicable time) and any such determination shall be
evidenced by an Opinion of Counsel to such effect delivered to Trustee
concurrently with or promptly after such notice. No such resignation shall
become effective until the earlier of Trustee or a successor Servicer having
assumed the responsibilities and obligations of the resigning Servicer in
accordance with Section 8.2 or the date upon which any regulatory
authority requires such resignation.

          Section 7.6
Servicer May Own Certificates. Servicer, and any Affiliate of Servicer,
may, in its individual or any other capacity, become the owner or pledgee of
Certificates with the same rights as it would have if it were not Servicer or
an Affiliate thereof, except as otherwise provided in the definition of
“Holder”, “Class A Holder” and “Class B Holder” in Section 1.1.
Certificates so owned by or pledged to Servicer or such Affiliate shall have an
equal and proportionate benefit under the provisions of this Agreement, without
preference, priority or distinction as among all of the Certificates, except as
otherwise provided in the definitions of “Class A Holder” and “Class B Holder”.

          Section 7.7
Existence. Subject to the provisions of Section 7.3, during the
term of this Agreement, Bank will keep in full force and effect its existence,
rights and franchises as a federally chartered savings association under the
laws of the jurisdiction of its organization.

ARTICLE VIII

SERVICING TERMINATION

          Section 8.1
Servicer Termination Events. (a) Any one of the following events shall
constitute a “Servicer Termination Event”:

49

	
  

 	
  

 
	
  

 	
 (i) any failure by Servicer to deliver to Trustee a Servicer’s Report
 for any Collection Period, which failure shall continue beyond the related
 Deposit Date;

 
	
  

 	
  

 
	
  

 	
 (ii) any failure by Servicer to deliver to any Account or the Reserve
 Account any payment or deposit required to be so delivered or paid under the
 terms of the Certificates and this Agreement, or to direct Trustee to make
 any required distribution from any Account or the Reserve Account, which
 failure shall continue unremedied for a period of five Business Days after
 written notice is received from the Trustee by Servicer or after discovery of
 such failure by Servicer (or, in the case of a payment or deposit to be made
 no later than a Deposit Date immediately preceding a Distribution Date, the
 failure to make such payment or deposit by such Distribution Date);

 
	
  

 	
  

 
	
  

 	
 (iii) any failure on the part of Servicer to duly observe or to
 perform in any material respect any other covenants or agreements set forth
 in the Certificates or in this Agreement, which failure shall (A) materially
 and adversely affect the rights of Holders (which determination shall be made
 without regard to whether funds are available to the Holders pursuant to the
 Reserve Account) and (B) continue unremedied for a period of 60 days after
 the date on which written notice of such failure, requiring the same to be
 remedied, shall have been given (1) to Servicer by Trustee, or (2) to Trustee
 and Servicer by the Holders of Certificates representing not less than 25% of
 the outstanding principal amount of the Certificates (or for such longer
 period, not in excess of 120 days, as may be reasonably necessary to remedy
 such default; provided that such default is capable of remedy within 120
 days and Servicer delivers an Officer’s Certificate to Trustee to such effect
 and to the effect that Servicer has commenced or will promptly commence, and
 will diligently pursue, all reasonable efforts to remedy such default);

 
	
  

 	
  

 
	
  

 	
 (iv) the entry of a decree or order by a court or agency or
 supervisory authority of competent jurisdiction for the appointment of a
 conservator, receiver, liquidator or trustee for Servicer, Seller,
 Transferor, or any of their respective successors, in any bankruptcy,
 receivership, conservatorship, insolvency or similar proceedings, or for the
 winding up or liquidation of its affairs, and any such decree or order
 continues unstayed and in effect for a period of 60 consecutive days; or

 
	
  

 	
  

 
	
  

 	
 (v) the consent by Servicer, Seller, Transferor, or any of their
 respective successors, to the appointment of a conservator, receiver,
 liquidator or trustee in any bankruptcy, receivership, conservatorship,
 insolvency or similar proceedings of or relating to such Person or relating
 to substantially all of its property, the admission in writing by such Person
 of its inability to pay its debts generally as they become due, the filing by
 such Person of a petition to take advantage of any applicable bankruptcy, 

 

50

	
  

 	
  

 
	
  

 	
 receivership, conservatorship, insolvency or similar statute, the
 making by such Person of an assignment for the benefit of its creditors or
 the voluntary suspension by such Person of payment of its obligations.

 

Upon the occurrence of any Servicer Termination Event, and so long as a
Servicer Termination Event shall not have been remedied, either Trustee, or the
Majority Holders, by notice then given in writing to Servicer, may terminate
all of the rights and obligations of Servicer (other than the obligations set
forth in Section 7.2) under this Agreement. On or after the receipt by
Servicer of such written notice, all authority and power of Servicer under this
Agreement, whether with respect to the Certificates or the Trust Property or
otherwise, shall pass to and be vested in Trustee or such successor Servicer as
may be appointed under Section 8.2 pursuant to this Section 8.1;
and thereupon Trustee shall be authorized and empowered to execute and deliver,
on behalf of Servicer, as attorney-in-fact or otherwise, any and all documents
and other instruments, and to do or accomplish all other acts or things
necessary or appropriate to effect the purposes of such notice of termination,
whether to complete the transfer and endorsement of the Receivable Files or the
Physical Damage Insurance Policies, the certificates of title to the Financed
Vehicles, or otherwise. Servicer shall cooperate with Trustee or any successor
Servicer in effecting the termination of its responsibilities and rights as
Servicer under this Agreement, including the transfer to Trustee or any
successor Servicer for administration of all cash amounts that are at the time
held by Servicer for deposit, shall have been deposited by Servicer in the
Collection Account, or thereafter shall be received with respect to a
Receivable, all Receivable Files and all information or documents that Trustee
or such successor Servicer may require. In addition, Servicer shall transfer
its electronic records relating to the Receivables to the successor Servicer in
such electronic form as the successor Servicer may reasonably request and shall
transfer to the successor Servicer all other records, correspondence and
documents necessary for the continued servicing of the Receivables in the
manner and at such times as the successor Servicer shall reasonably request.
All reasonable out-of-pocket costs and expenses incurred by the successor
Servicer in connection with the transfer of servicing shall be paid by the
predecessor Servicer upon presentation of reasonable documentation of such
costs and expenses.

	
  

 	
  

 
	
  

 	
           (b) If
 any of the foregoing Servicer Termination Events occur, Trustee shall have no
 obligation to notify Holders or any other Person of such occurrence prior to
 the continuance of such event through the end of any cure period specified in
 Section 8.1(a).

 

          Section 8.2
Trustee to Act; Appointment of Successor Servicer. Upon Servicer’s
resignation pursuant to Section 7.5 or upon Servicer’s receipt of notice
of termination as Servicer pursuant to Section 8.1, Trustee shall be the
successor in all respects to Servicer in its capacity as Servicer under this
Agreement, and shall be subject to all the responsibilities, duties and
liabilities relating thereto placed on Servicer by the terms and provisions of
this Agreement, except that Trustee, when acting as successor Servicer, shall
not be obligated to purchase Receivables pursuant to Section 3.7 unless
the obligation to repurchase arose after the date of the notice of termination
given to Servicer pursuant to Section 8.1, and neither Trustee nor any
successor Servicer shall be liable for any acts or omissions of the terminated
Servicer or for any breach by such Servicer of any of its representations or
warranties contained herein or in any related documents or agreements. As
compensation therefor, Trustee shall be entitled to the same Servicing Fees
(whether payable out of the Collection Account or otherwise) and 

51

Supplemental Servicing Fees as Servicer would have been entitled to
under this Agreement if no such notice of termination or resignation had been
given. Notwithstanding the above, Trustee may appoint, or petition a court of
competent jurisdiction to appoint, an Eligible Servicer as the successor to the
terminated Servicer under this Agreement; provided that Trustee shall continue to be
the successor to Servicer until another successor Servicer shall have assumed
the responsibilities and obligations of Servicer. In connection with such
appointment, Trustee may make such arrangements for the compensation of such
successor Servicer out of payments on Receivables as it and such successor
shall agree, which shall in no event be greater than the Servicing Fees and
Supplemental Servicing Fees payable to Bank as Servicer hereunder. Trustee and
such successor shall take such action, consistent with this Agreement, as shall
be necessary to effectuate any such succession. No Servicer shall resign or be
relieved of its duties under this Agreement until a newly appointed Servicer
shall have assumed the responsibilities and obligations of the terminated
Servicer under this Agreement.

          Section 8.3
Effect of Servicing Transfer. (a) After the transfer of servicing
hereunder, Trustee or successor Servicer shall notify Obligors to make directly
to the successor Servicer payments that are due under the Receivables after the
effective date of such transfer.

	
  

 	
  

 
	
  

 	
           (b)
 Except as provided in Sections 7.2 and 9.8 after the transfer
 of servicing hereunder, the predecessor Servicer shall have no further
 obligations with respect to the management, administration, servicing,
 custody or collection of the Receivables and the successor Servicer shall
 have all of such obligations, except that the predecessor Servicer will
 transmit or cause to be transmitted directly to the successor Servicer for
 its own account, promptly on receipt and in the same form in which received,
 any amounts held by the predecessor Servicer (properly endorsed where
 required for the successor Servicer to collect any such items) received as
 payments upon or otherwise in connection with the Receivables and the
 predecessor Servicer shall continue to cooperate with the successor Servicer by
 providing information and in the enforcement of the Dealer Agreements and the
 Physical Damage Insurance Policies.

 
	
  

 	
  

 
	
  

 	
           (c) A
 transfer of servicing hereunder shall not affect the rights and duties of the
 parties hereunder other than those relating to the management,
 administration, servicing, custody or collection of the Receivables and the
 other Trust Property. The successor Servicer shall, upon its appointment
 pursuant to Section 8.2 and as part of its duties and responsibilities
 under this Agreement, promptly take all action it deems necessary or
 appropriate so that the predecessor Servicer (in whatever capacity) is paid
 or reimbursed all amounts it is entitled to receive under this Agreement on
 each Distribution Date subsequent to the date on which it is terminated as
 Servicer hereunder. Without limiting the generality of the foregoing, the
 predecessor Servicer will be entitled to receive all accrued and unpaid
 Servicing Fees and Supplemental Servicing Fees through and including the
 effective date of the termination of the predecessor Servicer.

 
	
  

 	
  

 
	
  

 	
           (d) Any
 successor Servicer shall provide Seller with access to the Receivable Files
 and to the successor Servicer’s records (whether written or automated) with
 respect to the Receivable Files. Such access shall be afforded 

 

52

	
  

 	
  

 
	
  

 	
 without charge, but only upon reasonable request and during normal
 business hours at the offices of the successor Servicer. Nothing in this
 Section shall affect the obligation of the successor Servicer to observe any
 applicable law prohibiting disclosure of information regarding the Obligors,
 and the failure of Servicer to provide access to information as a result of
 such obligation shall not constitute a breach of this Section.

 

          Section 8.4
Notification to Holders. Upon any notice of a Servicer Termination Event
or upon any termination of, or appointment of a successor to, Servicer pursuant
to this Article VIII, Trustee shall give prompt written notice thereof
to Holders at their respective addresses of record, and to each Rating Agency.

          Section 8.5
Waiver of Past Servicer Termination Events. The Majority Holders may, on
behalf of all Holders of Certificates, waive any Servicer Termination Event
hereunder and its consequences, except an event resulting from the failure to
make any required deposits or payments to the Collection Account in accordance
with this Agreement. Upon any such waiver of a past Servicer Termination Event,
such event shall cease to exist and shall be deemed to have been remedied for
every purpose of this Agreement. No such waiver shall extend to any subsequent
or other event or impair any right arising therefrom, except to the extent
expressly so waived.

          Section 8.6
Transfer of Accounts. Notwithstanding the provisions of Section 8.1,
if any of the Accounts or the Reserve Account is maintained with Servicer or an
Affiliate of Servicer and a Servicer Termination Event shall occur and be
continuing, Servicer shall promptly, and in any event within five Business
Days, give notice to Trustee of such Servicer Termination Event, and Trustee,
within _____ days after the receipt of such notice, shall establish new
Eligible Deposit Accounts conforming with the requirements of this Agreement
and promptly shall transfer all funds in any such Accounts or the Reserve
Account to such new Eligible Deposit Accounts.

ARTICLE IX

TRUSTEE

          Section 9.1
Acceptance by Trustee. Trustee hereby acknowledges its acceptance of all
right, title and interest in and to the Receivables and the other Trust
Property conveyed by Seller pursuant to this Agreement and hereby declares that
Trustee holds and shall hold such right, title and interest, upon the trust set
forth in this Agreement.

          Section 9.2
Duties of Trustee. (a) Trustee, both prior to and after the curing of a
Servicer Termination Event, undertakes to perform only such duties as are
specifically set forth in this Agreement and no implied covenants or
obligations shall be read into this Agreement against Trustee. If a Servicer
Termination Event, of which an Authorized Officer of Trustee has actual
knowledge, shall have occurred and shall not have been cured (the appointment
of a successor Servicer (including Trustee) to constitute a cure for the
purposes of this Article), Trustee shall exercise such of the rights and powers
vested in it by this Agreement, and shall use the same degree of care and skill
in their exercise, as a prudent man would exercise or use under 

53

the circumstances in the conduct of his own affairs; provided
that if Trustee assumes the duties of Servicer pursuant to Section 8.2,
Trustee in performing such duties shall use the degree of skill and attention
required by Section 3.1.

	
  

 	
  

 	
  

 
	
  

 	
           (b)
 Trustee, upon receipt of all resolutions, certificates, statements, opinions,
 reports, documents, orders, or other instruments furnished to Trustee that
 are required specifically to be furnished pursuant to any provision of this
 Agreement, shall examine them to determine whether they conform to the
 requirements of this Agreement.

 
	
  

 	
  

 	
  

 
	
  

 	
           (c) No
 provision of this Agreement shall be construed to relieve Trustee from
 liability for its own negligent action, its own negligent failure to act, its
 own willful misfeasance or its own bad faith; provided that:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i) Prior to the occurrence of a Servicer Termination Event, and
 after the curing of all such Servicer Termination Events that may have
 occurred, the duties and obligations of Trustee shall be determined solely by
 the express provisions of this Agreement, Trustee shall not be liable except
 for the performance of such duties and obligations as are specifically set
 forth in this Agreement, no implied covenants or obligations shall be read
 into this Agreement against Trustee, the permissible right of Trustee (solely
 in its capacity as such) to do things enumerated in this Agreement shall not
 be construed as a duty and, in the absence of bad faith on the part of
 Trustee, or manifest error, Trustee (solely in its capacity as such) may
 conclusively rely on the truth of the statements and the correctness of the
 opinions expressed in any certificates or opinions furnished to Trustee and
 conforming to the requirements of this Agreement;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii) Trustee shall not be personally liable for an error of judgment made
 in good faith by an officer of Trustee, unless it shall be proved that
 Trustee shall have been negligent in performing its duties in accordance with
 the terms of this Agreement; and

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii) Trustee shall not be personally liable with respect to any
 action taken, suffered, or omitted to be taken in good faith in accordance
 with the direction of the Majority Holders, as set forth in Section 8.1,
 relating to the time, method and place of conducting any proceeding or any
 remedy available to Trustee, or exercising any trust or power conferred upon
 Trustee, under this Agreement.

 
	
  

 	
  

 	
  

 
	
  

 	
           (d)
 Except for the willful misfeasance, bad faith or negligence of Trustee,
 Trustee shall not be required to expend or risk its own funds or otherwise
 incur any 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 for believing that the repayment of such funds or
 indemnity satisfactory to it against such risk or liability shall not be
 reasonably assured to it, and none of the 

 

54

	
  

 	
  

 
	
  

 	
 provisions contained in this Agreement shall in any event require
 Trustee to perform, or be responsible for the manner of performance of, any
 of the obligations of Servicer under this Agreement except during such time,
 if any, as Trustee shall be the successor to, and be vested with the rights,
 duties, powers and privileges of, Servicer in accordance with the terms of
 this Agreement.

 
	
  

 	
  

 
	
  

 	
           (e)
 Except for actions expressly authorized by this Agreement, Trustee shall take
 no action reasonably likely to impair the security interests created or
 existing under any Receivable or Financed Vehicle or to impair the value of
 any Receivable or Financed Vehicle.

 
	
  

 	
  

 
	
  

 	
           (f) Trustee
 shall have no power to vary the corpus of the Trust including (i) accepting
 any substitute obligation for a Receivable initially assigned to Trustee
 under this Agreement, (ii) adding any other investment, obligation or
 security, or (iii) withdrawing any Receivable, except for a withdrawal
 permitted under this Agreement.

 

          Section 9.3
Trustee’s Certificate. As soon as practicable after each Deposit Date on
which Receivables shall be assigned to Seller pursuant to Section 2.4 or
10.2 or to Servicer pursuant to Section 3.7, as applicable,
Trustee shall execute a certificate, prepared by Servicer, including its date
and the date of the Agreement, and accompanied by a copy of Servicer’s Report
for the related Collection Period. Trustee’s certificate shall operate, as of
such Deposit Date, as an assignment pursuant to Section 9.4.

          Section 9.4
Trustee’s Assignment of Purchased Receivables. With respect to all
Receivables repurchased by Servicer pursuant to Section 2.4 or Section
10.2, or purchased by Servicer pursuant to Section 3.7 or Section
10.2, Trustee shall assign, without recourse, representation or warranty,
to Servicer, all of Trustee’s right, title and interest in and to such
Receivables, and all security and documents and all other Trust Property
conveyed pursuant to Section 2.1 with respect to such Receivables. Such
assignment shall be a sale and assignment outright, and not for security. If,
in any enforcement suit or legal proceeding, it is held that Servicer, may not
enforce any such Receivable on the ground that it shall not be a real party in
interest or a holder entitled to enforce the Receivable, Trustee shall, at the
expense of Servicer, take such steps as Servicer, deems necessary to enforce
the Receivable, including bringing suit in Trustee’s name or the names of the
Holders.

          Section 9.5
Certain Matters Affecting Trustee. Except as otherwise provided in Section
9.2:

	
  

 	
  

 
	
  

 	
           (a)
 Trustee may conclusively rely and shall be protected in acting or refraining
 from acting upon, any resolution, certificate of auditors or accountants or
 any other certificate, statement, instrument, opinion, report, notice,
 request, direction, consent, order, appraisal, bond, note or other paper or
 document believed by it to be genuine and to have been signed or presented by
 the proper party or parties.

 

55

	
  

 	
  

 
	
  

 	
           (b)
 Trustee may consult with counsel knowledgeable in the area and any Opinion of
 Counsel shall be full and complete authorization and protection in respect of
 any action taken or suffered or omitted by it under this Agreement in good
 faith and in accordance with such written Opinion of Counsel a copy of which
 shall be provided to Seller and Servicer.

 
	
  

 	
  

 
	
  

 	
           (c)
 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 in relation to this Agreement, at the
 request, order or direction of any of the Holders pursuant to the provisions
 of this Agreement, unless such Holders shall have offered to Trustee security
 or indemnity satisfactory to Trustee against the costs, expenses, and
 liabilities that may be incurred therein or thereby. Nothing contained in
 this Agreement, however, shall relieve Trustee of the obligations, upon the
 occurrence of a Servicer Termination Event that is not timely cured or waived
 pursuant to Section 8.5, to exercise such of the rights and powers
 vested in it by this Agreement, and to use the same degree of care and skill
 in their exercise as a prudent man would exercise or use under the
 circumstances in the conduct of his own affairs; provided that if Trustee
 assumes the duties of Servicer pursuant to Section 8.2, Trustee in
 performing such duties shall use the degree of skill and attention required
 by Section 3.1.

 
	
  

 	
  

 
	
  

 	
           (d)
 Trustee shall not be personally liable for any action taken, suffered or
 omitted by it in good faith and believed by it to be authorized or within the
 discretion, rights or powers conferred upon it by this Agreement.

 
	
  

 	
  

 
	
  

 	
           (e) Prior
 to the occurrence of a Servicer Termination Event and after the curing of all
 Servicer Termination Events that may have occurred, Trustee shall not be
 bound to make any investigation into the facts of any matters stated in any
 resolution, certificate, statement, instrument, opinion, report, notice,
 request, consent, direction, order, approval, bond, note or other paper or
 document, unless requested in writing so to do by the Majority Holders; provided
 that if the payment within a reasonable time to Trustee of the costs,
 expenses, or liabilities likely to be incurred by it in the making of an
 investigation requested by the Holders is, in the opinion of Trustee, not
 reasonably assured to Trustee by the security afforded to it by the terms of
 this Agreement, Trustee may require indemnity 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 Servicer, or, if paid by
 Trustee, shall be reimbursed by Servicer upon demand. Nothing in this clause
 (e) shall affect the obligation of Servicer to observe any applicable law
 prohibiting disclosure of information regarding the Obligors; provided
 further,
 that Trustee shall be entitled to make such further inquiry or investigation
 into such facts or matter as it may reasonably see fit, and if Trustee shall
 determine to make such further inquiry or investigation it shall be entitled
 to examine the books and records of Servicer, personally or by agent or
 attorney, at the sole cost and expense of Servicer.

 

56

	
  

 	
  

 
	
  

 	
           (f)
 Trustee may execute any of the trusts or powers hereunder or perform any
 duties under this Agreement either directly or by or through agents,
 attorneys, nominees or a custodian, and shall not be liable for the acts of
 such agents, attorney, nominees or custodians except for (i) acts of ________
 or any successor agent carrying out Trustee’s obligations with respect to the
 preparation of Servicer Reports and (ii) acts of any other agent, attorney,
 nominee or custodian if (A) Trustee has not acted with due care in their
 appointment or (B) Seller has not consented to their appointment.

 
	
  

 	
  

 
	
  

 	
           (g)
 Trustee shall not be required to make any initial or periodic examination of
 any documents or records related to the Receivables or Financed Vehicles for
 the purpose of establishing the presence or absence of defects, the
 compliance by Seller with its representations and warranties or for any other
 purpose.

 
	
  

 	
  

 
	
  

 	
           (h)
 Trustee shall not be construed to be a guarantor of the performance of
 Servicer, nor shall Trustee have any duty to monitor the performance of
 Servicer other than as expressly stated in this Agreement.

 
	
  

 	
  

 
	
  

 	
           (i)
 Trustee shall not be required to take notice or be deemed to have notice of
 any Servicer Termination Event hereunder, except a Servicer Termination Event
 under Section 8.1(a)(i) or (ii), unless Trustee shall be
 specifically notified in writing of such Servicer Termination Event by
 Servicer, Seller or any Holder. All notices or other instruments required by
 this Agreement to be delivered to Trustee shall be delivered at the Corporate
 Trust Office and, in the absence of such notice so delivered, Trustee may
 conclusively assume there is no Servicer Termination Event except as
 aforesaid.

 

          Section 9.6
Trustee Not Liable for Certificates or Receivables. Trustee assumes no
responsibility for the correctness of the recitals contained herein and in the
Certificates (other than the certificate of authentication on the
Certificates). Except as expressly provided herein, Trustee makes no
representations as to the validity or sufficiency of this Agreement or of the
Certificates (other than Trustee’s execution of, and the certificate of
authentication on, the Certificates), or of any Receivable or related document,
or for the validity of the execution by Seller and Servicer of this Agreement
or of any supplements hereto or instruments of further assurance, or for the
sufficiency of the Trust Property hereunder, and Trustee shall not be bound to
ascertain or inquire as to the performance or observance of any covenants,
conditions or agreements on the part of Servicer under this Agreement except as
herein set forth; but Trustee may require Servicer to provide full information
and advice as to the performance of the aforesaid covenants, condition and
agreements. Trustee (solely in its capacity as such) shall have no obligation
to perform any of the duties of Servicer, except as explicitly set forth in
this Agreement. Trustee shall have no liability in connection with compliance
of Servicer with statutory or regulatory requirements to the Receivables.
Trustee shall not make or be deemed to have made any representations or
warranties with respect to the Receivables or the validity or sufficiency of
any assignment of the Receivables to the Trust or Trustee. Trustee (solely in
its capacity as such) shall at no time have any responsibility or liability
for, or with respect to, the legality, validity or enforceability of any
security interest in 

57

any Financed Vehicle or (prior to the time, if any, that Servicer is
terminated as custodian hereunder) any Receivable, or the perfection and
priority of such a security interest or the maintenance of any such perfection
and priority, the efficacy of the Trust or its ability to generate funds
sufficient to provide for the payments to be distributed to Holders under this
Agreement, the existence, condition, location, and ownership of any Financed
Vehicle, the existence and enforceability of the Insurance Policies, the
existence and contents of any Receivable or 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 Seller with any warranty or
representation made under this Agreement or in any related document and the
accuracy, of any such warranty or representation, prior to Trustee’s receipt of
notice or other discovery of any noncompliance therewith or any breach thereof,
any investment of monies by Servicer or any loss resulting therefrom (it being
understood that Trustee shall remain responsible for any Trust Property that it
may hold), the acts or omissions of Seller, Servicer, or any Obligor, any
action of Servicer taken in the name of Trustee, or any action by Trustee taken
at the instruction, of Servicer (provided that such instruction is not in
express violation of the terms and provisions of this Agreement); provided
that the foregoing shall not relieve Trustee of its obligation to perform its
duties under this Agreement. Except with respect to a claim based on the
failure of Trustee to perform its duties under this Agreement (whether in its
capacity as Trustee or as successor Servicer) or based on Trustee’s willful
misconduct, negligence, or bad faith, or based on Trustee’s breach of a
representation and warranty contained in Section 9.14, no recourse shall
be had to Trustee (whether in its individual capacity or as Trustee) for any
claim based on any provision of this Agreement, the Certificates, or any
Receivable or assignment thereof against Trustee in its individual capacity;
Trustee shall not have any personal obligation, liability, or duty whatsoever
to any Holder or any other Person with respect to any such claim. Trustee shall
not be accountable for the use or application by Seller of the proceeds of such
Certificates, or for the use or application of any funds paid to Servicer in
respect of the Receivables prior to the time such amounts are deposited in the
Collection Account (whether or not the Collection Account is maintained with
Trustee). Trustee shall have no liability for any losses from the investment or
reinvestment in Eligible Investments made in accordance with Section 4.1.

                    Section
9.7 Trustee May Own Certificates. Trustee in its individual or any other
capacity may become the owner or pledgee of Certificates with the same rights
as it would have if it were not Trustee.

                    Section
9.8 Trustee’s Fees and Expenses. Servicer agrees to pay to Trustee, and
Trustee shall be entitled to, reasonable compensation (which shall not be
limited by any provision of law in regard to the compensation of a trustee of
an express trust) for all services rendered by it in the execution of the
trusts created by this Agreement and in the exercise and performance of any of
the powers and duties under this Agreement as Trustee, and Servicer shall pay
or reimburse Trustee upon its request for all reasonable expenses (including
expenses incurred in connection with notices or other communications to
Holders), disbursements and advances (including the reasonable compensation and
the reasonable expenses and disbursements of its counsel and of all persons not
regularly in its employ) incurred or made by Trustee in accordance with any of
the provisions of this Agreement (including the reasonable fees and expenses of
its agents, any co-trustee and counsel) or in defense of any action brought
against it in connection with this Agreement except any such expense,
disbursement or advance 

58

as may arise from its negligence, willful misfeasance, or bad faith.
Servicer’s covenant to pay the expenses, disbursements and advances provided
for in the preceding sentence shall survive the termination of this Agreement.

                    Section
9.9 Eligibility Requirements for Trustee. Trustee shall at all times be
organized and doing business under the banking laws of the United States or of
any state thereof, shall be authorized under such laws to exercise corporate
trust powers, shall have a consolidated net worth of at least $50,000,000 and
shall be subject to supervision or examination by federal or state banking
authorities. If Trustee 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 9.9, the
consolidated net worth of such Trustee shall be deemed to be its consolidated
capital and surplus as set forth in its most recent consolidated report of
condition so published. In case at any time Trustee shall cease to be eligible
in accordance with the provisions of this Section 9.9, Trustee shall
resign immediately in the manner and with the effect specified in Section
9.10.

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

	
  

 	
  

 
	
  

 	
           (b) If at
 any time Trustee shall cease to be eligible in accordance with the provisions
 of Section 9.9 and shall fail to resign after written request therefor
 by Servicer, or if at any time Trustee shall be legally unable to act, or
 shall be adjudged bankrupt or insolvent, or a receiver, conservator or
 liquidator of Trustee or of its property shall be appointed, or any public
 officer shall take charge or control of Trustee or of its property or affairs
 for the purpose of rehabilitation, conservation or liquidation, then Servicer
 may remove Trustee. If Trustee is removed under the authority of the
 immediately preceding sentence, Servicer shall promptly appoint a successor
 trustee by written instrument, in duplicate, one copy of which instrument
 shall be delivered to Trustee so removed, the successor Trustee, the Holders
 at their respective addresses of record and the Rating Agencies.

 
	
  

 	
  

 
	
  

 	
           (c) Any
 resignation or removal of Trustee and appointment of a successor Trustee
 pursuant to any of the provisions of this Section 9.10 shall not
 become effective until acceptance of appointment by the successor Trustee
 pursuant to Section 9.11.

 

59

	
  

 	
  

 
	
  

 	
           (d) The
 respective obligations of Seller and Servicer described in this Agreement
 shall survive the removal or resignation of Trustee as provided in this
 Agreement.

 

                    Section
9.11 Successor Trustee. (a) Any successor Trustee appointed pursuant to
Section 9.10 shall execute, acknowledge, and deliver to Servicer and to
its predecessor Trustee an instrument accepting such appointment under this
Agreement, and thereupon the resignation or removal of the predecessor Trustee
shall become effective and such successor Trustee, without any further act,
deed or conveyance, shall become fully vested with all rights, powers, duties,
and obligations of its predecessor under this Agreement, with like effect as if
originally named as Trustee. The predecessor Trustee shall deliver to the
successor Trustee all documents and statements held by it under this Agreement,
and Servicer and the predecessor 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 Trustee all such rights,
powers, duties, and obligations.

	
  

 	
  

 
	
  

 	
           (b) No
 successor Trustee shall accept appointment as provided in this Section
 9.11 unless at the time of such acceptance such successor Trustee shall
 be eligible pursuant to Section 9.9.

 
	
  

 	
  

 
	
  

 	
           (c) Upon
 acceptance of appointment by a successor Trustee pursuant to this Section
 9.11, Servicer shall mail notice of such acceptance by the successor
 Trustee under this Agreement to all Holders at their respective addresses of
 record and to the Rating Agencies. If Servicer shall fail to mail such notice
 within 10 days after acceptance of appointment by the successor Trustee, the
 successor Trustee shall cause such notice to be mailed at the expense of
 Servicer.

 
	
  

 	
  

 
	
  

 	
           (d) No predecessor
 Trustee shall be liable for the acts or omissions of any successor Trustee.

 

                    Section
9.12 Merger or Consolidation of or Assumption of Obligations of Trustee.
Any corporation or banking association which is eligible to be a successor
Trustee under Section 9.9 (a) into which Trustee may be merged or
consolidated, (b) that may result from any merger, conversion or consolidation
to which Trustee shall be a party, or (c) that may succeed by purchase and
assumption to the business of Trustee, where Trustee is not the surviving
entity, which corporation or banking association executes an agreement of
assumption to perform every obligation of Trustee under this Agreement, shall
be the successor of Trustee hereunder, 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. Trustee shall promptly notify
Servicer and each Rating Agency of any such merger, conversion, consolidation
or purchase and assumption where Trustee is not the surviving entity.

                    Section
9.13 Appointment of Co-Trustee or Separate Trustee. (a) Notwithstanding
any other provisions of this Agreement, at any time, for the purpose of meeting
any legal requirements of any jurisdiction in which any part of the Trust
Property or any Financed Vehicle may at the time be located, Servicer and
Trustee acting jointly shall have the 

60

power and shall execute and deliver all instruments to appoint one or
more Persons approved by Trustee to act as co-trustee, jointly with Trustee, or
separate trustee or separate trustees, of all or any part of the Trust, and to
vest in such Person, in such capacity and for the benefit of the Holders, such
title to the Trust, or any part thereof, and, subject to the other provisions
of this Section 9.13, such powers, duties, obligations, rights, and
trusts as Servicer and Trustee may consider necessary or desirable. If Servicer
shall not have joined in such appointment within 15 days after the receipt by
it of a request so to do, or in case a Servicer Termination Event shall have
occurred and be continuing, Trustee alone shall have the power to make such
appointment. No co-trustee or separate trustee under this Agreement shall be required
to meet the terms of eligibility as a successor trustee pursuant to Section
9.9 and no notice to Holders of the appointment of any co-trustee or
separate trustee shall be required pursuant to Section 9.11.
Notwithstanding the appointment of a co-trustee or separate trustee hereunder,
Trustee shall not be relieved of any of its obligations under this Agreement.

	
  

 	
  

 	
  

 
	
  

 	
           (b) 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 Trustee
 shall be conferred upon and exercised or performed by 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
 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 (whether
 as Trustee under this Agreement or as successor to Servicer under this
 Agreement), 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 Property 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 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.

 
	
  

 	 	
  

 
	
  

 	 	
 (iii)
 Servicer and Trustee acting jointly 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 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 in
 particular to the provisions 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 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 

 

61

	
  

 	
  

 
	
  

 	
 the conduct of, affecting the liability of, or affording protection
 to, Trustee. Each such instrument shall be filed with Trustee and a copy
 thereof given to Servicer.

 
	
  

 	
  

 
	
  

 	
           (d) Any
 separate trustee or co-trustee may, at any time, appoint 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 acting, resign or be removed, all of its estates,
 properties, rights, remedies and trusts shall vest in and be exercised by
 Trustee, to the extent permitted by law, without the appointment of a new or
 successor trustee. Trustee shall promptly notify Servicer and each Rating
 Agency of any appointment made pursuant to this Section 9.13.

 

                    Section
9.14 Representations and Warranties of Trustee. Trustee makes the
following representations and warranties on which Seller, Servicer, and Holders
may rely:

	
  

 	
  

 
	
  

 	
           (a) Organization
 and Good Standing. Trustee is a _______________ duly organized, validly
 existing, and in good standing under the laws of ____________.

 
	
  

 	
  

 
	
  

 	
           (b) Power
 and Authority. Trustee has full power, authority and legal right to
 execute, deliver, and perform this Agreement and the Related Agreements to
 which it is a party and has taken all necessary action to authorize the
 execution, delivery, and performance by it of this Agreement and the Related
 Agreements to which it is a party.

 
	
  

 	
  

 
	
  

 	
           (c) Enforceability.
 This Agreement and the Related Agreements to which it is a party have been
 duly executed and delivered by Trustee and this Agreement and such Related
 Agreements constitute legal, valid and binding obligations of Trustee
 enforceable against Trustee in accordance with their respective terms, except
 as such enforceability may be limited by applicable bankruptcy, insolvency,
 reorganization, moratorium or other similar laws now or hereafter in effect
 affecting the enforcement of creditors’ rights generally and except as such
 enforceability may be limited by equitable limitations on the availability of
 specific remedies.

 
	
  

 	
  

 
	
  

 	
           (d) No
 Consent Required. No approval, authorization, consent, license or other
 order or action of, or filing or registration with, any governmental
 authority, bureau or agency is required in connection with the execution,
 delivery or performance by Trustee of this Agreement, the Related Agreements
 or the consummation of the transactions contemplated hereby or thereby.

 
	
  

 	
  

 
	
  

 	
           (e) No
 Violation. The execution, delivery and performance by Trustee of this
 Agreement and the Related Agreements and the consummation of the transactions
 contemplated hereby and thereby will not conflict with, result in any breach
 of the terms and provisions of, constitute (with or without notice or lapse
 of time) a default under, or result in the creation or disposition of any
 Lien upon 

 

62

	
  

 	
  

 
	
  

 	
 any of its properties pursuant to the terms of, (i) the articles of
 association or by-laws of Trustee, (ii) any indenture, contract, lease,
 mortgage, deed of trust or other instrument or agreement to which Trustee is
 a party or by which Trustee is bound or to which any of its properties are
 subject, or (iii) any law, order, rule or regulation applicable to Trustee or
 its properties of any federal or state regulatory body, any court,
 administrative agency or other governmental instrumentality having
 jurisdiction over Trustee or any of its properties.

 

                    Section
9.15 Reports by Trustee. Trustee shall provide to any Holder or
Certificate Owner who so requests in writing (addressed to the Corporate Trust
Office) a copy of any Servicer’s Report, the annual statement described in Section
3.10, and the annual accountant’s attestation report described in Section
3.11. Trustee may require any Holder or Certificate Owner requesting such
report to pay a reasonable sum to cover the cost of Trustee’s complying with
such request.

                    Section
9.16 Tax Returns. Servicer shall prepare or shall cause to be prepared
any tax returns on Form 1065 (or other applicable form) required to be filed by
the Trust and shall remit such returns to Trustee for signature at least five
days before such returns are due to be filed. Trustee, upon request, will
furnish Servicer with all such information actually known to an Authorized
Officer of Trustee as may be reasonably required in connection with the
preparation of all tax returns of the Trust, and shall, upon request, execute
such returns. Servicer shall prepare the tax returns of the Trust in accordance
with the Code and any regulations (including, to the extent applicable by their
terms, proposed regulations) thereunder.

                    Section
9.17 Trustee May Enforce Claims Without Possession of Certificates. All
rights of action and claims under this Agreement or the Certificates may be
prosecuted and enforced by Trustee without the possession of any of the
Certificates or the production thereof in any proceeding relating thereto, and
any such proceeding instituted by Trustee shall be brought in its own name as
trustee. Any recovery of judgment shall, after provision for the payment of the
reasonable compensation, expenses, disbursements and advances of Trustee, its
agents and counsel, be for the ratable benefit of the Holders in respect of which
such judgment has been obtained.

ARTICLE X

TERMINATION

                    Section
10.1 Termination of the Trust. (a) The Trust, and the respective
obligations and responsibilities of Seller, Servicer and Trustee hereunder,
shall terminate (except as otherwise expressly provided herein) upon the
earliest of: (i) the Distribution Date next succeeding the purchase by Servicer
at its option, pursuant to Section 10.2, of the Receivables (other than
Defaulted Receivables) remaining in the Trust, (ii) the payment to Holders of
all amounts required to be paid to them pursuant to this Agreement or (iii) the
Distribution Date next succeeding the month which is six months after the
maturity or the liquidation of the last Receivable held in the Trust and the
disposition of any amounts received upon liquidation of any property remaining
in the Trust. Servicer shall promptly notify Trustee of any prospective
termination pursuant to this Section 10.1.

63

	
  

 	
  

 
	
  

 	
           (b)
 Notice of any termination, specifying the Distribution Date upon which the
 Holders may surrender the Certificates to Trustee for payment of the final
 distribution and cancellation, shall be given promptly by Trustee by letter
 to Holders of record and the Rating Agencies mailed not earlier than the 15th
 day and not later than the 25th day of the month next preceding the specified
 Distribution Date stating the amount of any such final payment and that the
 Record Date otherwise applicable to such Distribution Date is not applicable,
 payments being made only upon presentation and surrender of the Certificates
 at the office of Trustee therein specified. Upon presentation and surrender
 of the Certificates, Trustee shall cause to be distributed to Holders amounts
 distributable on such Distribution Date pursuant to Section 4.5.
 Amounts remaining in the Trust after distribution, or after setting aside all
 funds required for distribution, to the Holders shall be distributed to the
 Transferor.

 
	
  

 	
  

 
	
  

 	
           (c) In
 the event that all of the Holders shall not surrender their Certificates for
 cancellation within six months after the date specified in the
 above-mentioned written notice, Trustee shall give a second written notice to
 the remaining Holders to surrender their Certificates for cancellation and
 receive the final distribution with respect thereto. Trustee shall, after
 giving such notice to the remaining Holders, deliver or cause to be delivered
 to Servicer the Certificate Register. If within one year after the second
 notice all the Certificates shall not have been surrendered for cancellation,
 Servicer may take appropriate steps, or may appoint an agent to take
 appropriate steps, to contact the remaining Holders concerning surrender of
 their Certificates, and the cost thereof shall be paid out of the funds and other
 assets that shall remain subject to this Agreement. Any funds remaining in
 the Trust after exhaustion of such remedies shall be distributed by Trustee
 to the Transferor.

 

                    Section
10.2 Optional Purchase of All Receivables. If the Pool Factor shall be
..1000000 or less as of the last day of any Collection Period, Servicer shall
have the option to purchase the remaining Trust Property on any Distribution
Date occurring in a subsequent Collection Period. To exercise such option,
Servicer shall deposit the aggregate Purchase Amount for the remaining
Receivables (other than Defaulted Receivables) into the Collection Account on
the Deposit Date occurring in the month in which such repurchase is to be
effected. The payment shall be made in the manner specified in Section 4.4,
and shall be distributed pursuant to Section 4.5. Upon such payment
Servicer shall succeed to and own all interests in and to the Trust Property
(subject to the rights of the Holders to receive a final distribution on the related
Distribution Date).

ARTICLE XI

MISCELLANEOUS PROVISIONS

                    Section
11.1 Amendment. 

	
  

 	
  

 
	
  

 	
           (a)
 Any term or provision of this Agreement may be amended by Seller, Servicer
 and Trustee without the consent of any of the Holders or any 

 

64

	
  

 	
  

 	
  

 
	
  

 	
  

 
	
  

 	
 other Person
 subject to subsection (e) of this Section 11.1 and the
 satisfaction of one of the following conditions:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i) Seller
 or Servicer delivers an Opinion of Counsel to Trustee to the effect that such
 amendment will not materially and adversely affect the interests of any
 Holder;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii) Seller
 or Servicer delivers an Officer’s Certificate of Seller or Servicer,
 respectively, to Trustee to the effect that such amendment will not
 materially and adversely affect the interests of any Holder; or

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii) Seller
 or Servicer delivers to Trustee written confirmation from each Rating Agency
 that such amendment will not cause it to downgrade, qualify or withdraw its
 rating assigned to any of the Certificates;

 
	
  

 	
  

 	
  

 
	
 provided, that any
 amendment entered into pursuant to this Section 11.1(a) shall not
 significantly change the permitted activities of the Trust.

 
	
  

 	
  

 	
  

 
	
  

 	
           (b)
 Any term or provision of this Agreement may be amended by Seller, Servicer
 and Trustee but without the consent of any of the Holders or any other Person
 to add, modify or eliminate any provisions as may be necessary or advisable
 in order to enable Seller, Servicer or any of their Affiliates to comply with
 or obtain more favorable treatment under any law or regulation or any
 accounting rule or principle, it being a condition to any such amendment that
 the Rating Agency Condition shall have been satisfied, provided, that any
 amendment entered into pursuant to this Section 11.1(b) shall not
 significantly change the permitted activities of the Trust.

 
	
  

 	
  

 
	
  

 	
           (c)
 This Agreement may also be amended from time to time by Seller, Servicer and
 Trustee, with the consent of the Majority Holders 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
 Holders; provided,
 that no such amendment shall (i) reduce the interest rate or principal amount
 of any Certificate, change or delay the Final Scheduled Distribution Date of
 any Certificate without the consent of the Holder of such Certificate, (ii)
 reduce the percentage of the Note Balance, the Holders of which are required
 to consent to any matter without the consent of the Holders of at least the
 percentage of the Note Balance which were required to consent to such matter
 before giving effect to such amendment. It will not be necessary for the
 consent of any of the Holders to approve the particular form of any proposed
 amendment or consent, but it will be sufficient if such consent approves the
 substance thereof. The manner of obtaining such consents (and any other
 consents of any of the Holders provided for in this Agreement) and of
 evidencing the authorization of the execution thereof by any of the Holders
 will be subject to such reasonable requirements as Trustee may prescribe,
 including the establishment of record dates pursuant to the Depository
 Agreement.

 

65

	
  

 	
  

 	
  

 
	
  

 	
           (d)
 Prior to the execution of any amendment to this Agreement, Servicer shall
 provide written notification of the substance of such amendment to each
 Rating Agency; and promptly after the execution of any such amendment or
 consent, Servicer shall furnish a copy of such amendment or consent to each
 Rating Agency and Trustee.

 
	
  

 	
  

 
	
  

 	
           (e)
 Prior to the execution of any amendment to this Agreement, Seller and Trustee
 shall be entitled to receive and conclusively rely upon an Opinion of Counsel
 stating that the execution of such amendment is authorized or permitted by
 this Agreement and that all conditions precedent to the execution and
 delivery of such amendment have been satisfied. Trustee may, but shall not be
 obligated to, enter into or execute on behalf of the Trust any such amendment
 which materially and adversely affects Trustee’s rights, privileges,
 indemnities, duties or obligations under this Agreement. Furthermore,
 notwithstanding anything to the contrary herein, this Agreement may not be
 amended in any way that would materially and adversely affect Trustee’s
 rights, privileges, indemnities, duties or obligations under this Agreement,
 the Related Agreements or otherwise without the prior written consent of such
 Person.

 

                    Section
11.2 Protection of Title to Trust Property. (a) Servicer shall
authorize and file such financing statements and cause to be authorized and
filed such continuation statements, all in such manner and in such places as
may be required by law fully to preserve, maintain and protect the interest of
the Holders and Trustee under this Agreement in the Trust Property and in the
proceeds thereof. Servicer shall deliver (or cause to be delivered) to Trustee
file-stamped copies of, or filing receipts for, any document filed as provided
above, as soon as available following such filing. If Servicer fails to perform
its obligations under this subsection, Trustee may (but shall not be obligated
to) do so, at the expense of Servicer.

	
  

 	
  

 	
  

 
	
  

 	
           (b)
 Neither Seller nor Servicer shall change its name, identity or corporate
 structure in any manner that would, could or might make any financing
 statement or continuation statement filed by Servicer in accordance with subsection
 (a) “seriously misleading” within the meaning of the UCC, unless it shall
 have given Trustee at least five days’ prior written notice thereof and shall
 have promptly filed appropriate amendments to all previously filed financing
 statements or continuation statements.

 
	
  

 	
  

 	
  

 
	
  

 	
           (c)
 Seller and Servicer shall give Trustee at least five days’ prior written
 notice of any relocation of its principal executive office if, as a result of
 such relocation, the applicable provisions of the UCC would require the
 filing of any amendment of any previously filed financing or continuation
 statement or of any new financing statement. Seller and Servicer shall at all
 times maintain each office from which it shall service Receivables, and its
 principal executive office, within the United States of America.

 
	
  

 	
  

 	
  

 
	
  

 	
           (d)
 Servicer shall maintain accounts and records as to each Receivable accurately
 and in sufficient detail to permit (i) the reader thereof to know at any time
 the status of such Receivable, including payments and recoveries made and 

 

66

	
  

 	
  

 	
  

 
	
  

 	
 payments owing (and the nature of each), and (ii) reconciliation
 between payments or recoveries on (or with respect to) each Receivable and
 the amounts from time to time deposited in the Collection Account in respect
 of such Receivable.

 
	
  

 	
  

 	
  

 
	
  

 	
           (e)
 Servicer shall maintain its computer systems so that, from and after the time
 of sale under this Agreement of the Receivables to Trustee, Servicer’s master
 computer records (including archives) that shall refer to a Receivable
 indicate clearly that such Receivable is owned by the Trust. Indication of
 the Trust’s ownership of a Receivable shall be deleted from or modified on
 Servicer’s computer systems when, and only when, the Receivable shall be paid
 or shall become a Purchased Receivable.

 
	
  

 	
  

 	
  

 
	
  

 	
           (f) If at
 any time Seller, the Transferor or Servicer shall propose to sell, grant a
 security interest in or otherwise transfer any interest in motor vehicle
 loans and/or retail installment sales contracts to any prospective purchaser,
 lender or other transferee, Seller, Transferor Servicer, as the case may be,
 shall give to such prospective purchaser, lender or other transferee computer
 tapes, records or printouts (including any restored from archives) that, if
 they shall refer in any manner whatsoever to any Receivable, shall indicate
 clearly that such Receivable has been sold and is owned by the Trust.

 
	
  

 	
  

 	
  

 
	
  

 	
           (g) Upon
 request, Servicer, at its expense, shall furnish to Trustee, within thirty
 days, a list of all Receivables then held as part of the Trust, together with
 a reconciliation of such list to each Schedule of Receivables and to each of
 Servicer’s Reports furnished pursuant to Section 3.9 indicating
 removal of Receivables from the Trust.

 
	
  

 	
  

 	
  

 
	
  

 	
           (h)
 Servicer shall permit Trustee and its agents, at the expense of Trustee
 (except after a Servicer Termination Event, in which case such cost will be
 at the expense of Servicer), at any time to inspect, audit and make copies of
 and abstracts from Servicer’s records regarding any Receivables then or
 previously included in the Trust.

 

                    Section
11.3 Limitation on Rights of Holders. (a) The death or incapacity of
any Holder shall not operate to terminate this Agreement or the Trust, or
entitle the Holder’s legal representatives or heirs to claim an accounting or
to take any action or commence any proceeding in any court for a partition or
winding up of the Trust, or otherwise affect the rights, obligations and
liabilities of the parties to this Agreement or any of them.

	
  

 	
  

 
	
  

 	
           (b) No
 Holder shall have any right to vote (except as expressly provided herein) or
 in any manner otherwise control the operation and management of the Trust or
 the obligations of the parties to this Agreement, nor shall anything set
 forth in this Agreement, or contained in the terms of the Certificates, be
 construed so as to constitute the Holders as partners or members of an
 association; nor shall any Holder be under any liability to any third party
 by reason of any action taken pursuant to any provision of this Agreement.

 

67

	
  

 	
  

 
	
  

 	
           (c) No
 Holder 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, unless such Holder
 previously shall have given to Trustee a written notice of default and of the
 continuance thereof, as hereinbefore provided, and unless, with respect to
 the Class A Certificates, Class A Holders evidencing not less than a majority
 of the aggregate outstanding principal balance of the Class A Certificates
 or, with respect to the Class B Certificates, Class B Holders evidencing not
 less than a majority of the aggregate outstanding principal balance of the
 Class B Certificates, shall have made written request upon Trustee to
 institute such action, suit or proceeding in its own name as Trustee under
 the Agreement and shall have offered to Trustee such reasonable indemnity as
 it may require against the costs, expenses and liabilities to be incurred
 therein or thereby, and Trustee, for __ days after its receipt of such notice,
 request and offer of indemnity satisfactory to it, shall have neglected or
 refused to institute any such action, suit or proceeding; 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 Class A Holders or Class B Holders, as the case may be. For
 the protection and enforcement of the provisions of this Section 11.3,
 each Holder and Trustee shall be entitled to such relief as can be given
 either at law or in equity.

 

                    Section
11.4 Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW
PROVISIONS OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL
OBLIGATIONS LAW, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS; EXCEPT THAT THE
GRANT OF A SECURITY INTEREST IN THE RESERVE ACCOUNT PROPERTY AND THE
PERFECTION, EFFECT OF PERFECTION, AND PRIORITY OF SUCH SECURITY INTEREST SHALL
BE GOVERNED BY THE LAWS OF THE STATE OF ______________.

                    Section
11.5 Notices. All demands, notices, and communications under this
Agreement shall be in writing, personally delivered, or sent by telecopier,
overnight mail or mailed by certified mail, return receipt requested, and shall
be deemed to have been duly given upon receipt (a) in the case of Seller to USAA
Acceptance, LLC at the following address: 9830 Colonnade Blvd., Suite 600, San
Antonio, Texas 78230, Attention: _______________; (b) in the case of Servicer,
to USAA Federal Savings Bank at the following address: 10750 McDermott Freeway,
San Antonio, Texas 78288, Attention: ______________; and (c) in the case of
Trustee, at the Corporate Trust Office, facsimile number: ______________. Any
notice required or permitted to be mailed to a Holder shall be given by first
class mail, postage prepaid, at the address of record of such Holder. Any
notice so mailed within the time prescribed in this Agreement shall be
conclusively presumed to have been duly given, whether or not the Holder shall
receive such notice.

68

                    Section
11.6 Severability of Provisions. If any one or more of the covenants,
provisions or terms of this Agreement shall be for any reason whatsoever held
invalid, then such covenants, provisions or terms shall be deemed severable
from the remaining covenants, provisions or terms of this Agreement, and shall
in no way affect the validity or enforceability of the other provisions of this
Agreement or of the Certificates or the rights of the Holders thereof.

                    Section
11.7 Assignment. Notwithstanding anything to the contrary contained
herein, except as provided in Section 2.5, 3.1, 6.3 and 7.3,
this Agreement may not be assigned by Seller or Servicer. This Agreement may
not be assigned by Trustee except as provided by Sections 9.10 through 9.13.

                    Section
11.8 Certificates Nonassessable and Fully Paid. The interests
represented by the Certificates shall be nonassessable for any losses or
expenses of the Trust or for any reason whatsoever, and, upon authentication
thereof by Trustee pursuant to Section 5.1, each Certificate shall be
deemed fully paid.

                    Section
11.9 Intention of Parties. (a) The execution and delivery of this
Agreement shall constitute an acknowledgment by Seller and Trustee, on behalf
of the Holders, that it is intended that the assignment and transfer herein
contemplated constitute a sale and assignment outright, and not for security,
of the Receivables and the other Trust Property, conveying good title thereto
free and clear of any liens, from Seller to the Trust, and that the Receivables
and the other Trust Property shall not be a part of Seller’s estate in the
event of the insolvency, receivership, conservatorship or the occurrence of
another similar event, of, or with respect to, Seller. In the event that such conveyance
is determined to be made as security for a loan made by the Trust or the
Holders to Seller, the parties intend that Seller shall have granted to Trustee
a security interest in all of Seller’s right, title and interest in and to the
Trust Property conveyed to the Trust pursuant to Section 2.1, and that
this Agreement shall constitute a security agreement under applicable law.

	
  

 	
  

 
	
  

 	
           (b) The
 execution and delivery of this Agreement shall constitute an acknowledgment
 by Seller and Trustee on behalf of the Holders that they intend that the
 Trust be classified (for Federal tax purposes) as a grantor trust under
 Subpart E, Part I of Subchapter J of the Internal Revenue Code of which the
 Holders are owners, rather than as an association taxable as a corporation.
 The powers granted and obligations undertaken in this Agreement shall be
 construed so as to further such intent.

 

                    Section
11.10 Counterparts. For the purpose of facilitating the execution of
this Agreement and for other purposes, this Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall
be deemed to be an original, and all of which counterparts shall constitute but
one and the same instrument.

                    Section
11.11 Further Assurances. Seller and Servicer agree to do and perform,
from time to time, any and all acts and to execute any and all further
instruments required or reasonably requested by Trustee more fully to effect
the purposes of this Agreement, including without limitation, the authorization
of any financing statements or continuation statements 

69

relating to the Receivables for filing under the provisions of the UCC
of any applicable jurisdiction.

                    Section
11.12 No Waiver; Cumulative Remedies. No failure to exercise and no
delay in exercising, on the part of the Trustee or the Holders, any right,
remedy, power or privilege hereunder, shall operate as a waiver thereof; nor
shall any single or partial exercise of any right, remedy, power or privilege
hereunder preclude any other or further exercise thereof or the exercise of any
other right, remedy, power or privilege. The rights, remedies, powers and
privileges therein provided are cumulative and not exhaustive of any rights,
remedies, powers and privileges provided by law.

                    Section
11.13 Regulation AB. The Servicer shall cooperate fully with Seller and
the Trust to deliver to Seller and the Trust (including any of its assignees or
designees) any and all statements, reports, certifications, records and any
other information necessary in the good faith determination of Seller or the
Trust to permit Seller to comply with the provisions of Regulation AB, together
with such disclosures relating to Servicer and the Receivables, or the
servicing of the Receivables, reasonably believed by Seller to be necessary in
order to effect such compliance.

                    Section
11.14 Information to Be Provided by Trustee. (a) For so long as Seller
is filing reports under the Exchange Act with respect to the Trust, Trustee
shall (i) on or before the fifth Business Day of each month, provide to Seller,
in writing, such information regarding Trustee as is requested by Seller (if
any) for the purpose of compliance with Item 1117 of Regulation AB; provided,
however,
that, subject to clause (b)(iv) of this Section 11.14, Trustee
shall not be required to provide such information in the event that there has
been no change to the information previously provided by Trustee to Seller, and
(ii) as promptly as practicable following notice to or discovery by a
Responsible Officer of Trustee of any changes to such information, provide to
Seller, in writing, such updated information.

	
  

 	
  

 	
  

 
	
  

 	
           (b) As
 soon as available but no later than March 15 of each calendar year for so
 long as the Trust is filing reports under the Exchange Act, commencing on
 March 15, 20[  ], Trustee shall:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)
 deliver to Seller a report regarding Trustee’s assessment of compliance with
 the Servicing Criteria during the immediately preceding calendar year, as
 required under paragraph (b) of Rule 13a-18, Rule 15d-18 of the Exchange Act
 and Item 1122 of Regulation AB. Such report shall be signed by an authorized
 officer of Trustee, and shall address each of the Servicing Criteria
 specified in Exhibit D or such criteria as mutually agreed upon by
 Seller and Trustee;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)
 cause a firm of registered public accountants that is qualified and
 independent within the meaning of Rule 2-01 of Regulation S-X under the
 Securities Act to deliver to Seller a report for inclusion in the Trust’s
 filing of Exchange Act Form 10-K that attests to, and reports on, the
 assessment of compliance made by the Trustee and delivered to Seller pursuant
 to the preceding paragraph. Such attestation shall be in accordance with
 Rules 

 

70

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and
 the Exchange Act;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)
 deliver to Seller and any other Person that will be responsible for signing
 the certification (a “Sarbanes Certification”) required by Rules
 13a-14(d) and 15d-14(d) under the Exchange Act (pursuant to Section 302 of
 the Sarbanes-Oxley Act of 2002) on behalf of the Trust or Seller, a back-up
 certification substantially in the form attached hereto as Exhibit E
 or such form as mutually agreed upon by Seller and Trustee; and

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iv)
 deliver to Seller the certification substantially in the form attached hereto
 as Exhibit F or such form as mutually agreed upon by Seller and
 Trustee regarding any affiliations or relationships (as described in Item
 1119 of Regulation AB) between Trustee and any Item 1119 Party and any Item
 1117 Disclosure Item.

 
	
  

 	
  

 	
  

 
	
  

 	
           Trustee
 acknowledges that the parties identified in clause (iii) above may
 rely on the certification provided by Trustee pursuant to such clause in
 signing a Sarbanes Certification and filing such with the Commission.

 

                    Section
11.15 Form 8-K Filings. So long as Seller is filing Exchange Act Reports
with respect to the Trust, Trustee shall promptly notify Seller, but in no
event later than one (1) Business Day after its occurrence, of any Reportable
Event of which a Responsible Officer of Trustee has actual knowledge (other
than a Reportable Event described in clause (a) or (b) of the
definition thereof as to which Seller or Servicer has actual knowledge).
Trustee shall be deemed to have actual knowledge of any such event to the
extent that it relates to Trustee or any action or failure to act by Trustee.

                    Section
11.16 Indemnification.
[                    ] shall indemnify
Seller, each Affiliate of Seller and each Person who controls any of such
parties (within the meaning of Section 15 of the Securities Act and Section 20
of the Exchange Act) and the respective present and former directors, officers,
employees and agents of each of the foregoing, and shall hold each of them
harmless from and against any losses, damages, penalties, fines, forfeitures,
legal fees and expenses and related costs, judgments, and any other costs, fees
and expenses that any of them may sustain arising out of or based upon:

	
  

 	
  

 
	
  

 	
           (a) (A)
 any untrue statement of a material fact contained or alleged to be contained
 in the Servicing Criteria assessment and any other information required to be
 provided by [                    ] to
 Seller or its affiliates under Sections 11.14 or 11.15 (such
 information, the “Trustee Provided Information”), or (B) the omission
 or alleged omission to state in the Trustee Provided Information a material
 fact required to be stated in the Trustee Provided Information, or necessary
 in order to make the statements therein, in the light of the circumstances
 under which they were made, not misleading; provided, by way of
 clarification, that clause (B) of this paragraph shall be construed
 solely by reference to the related information and not to any other
 information communicated in connection with a sale or purchase of securities,
 without regard to whether the Trustee 

 

71

	
  

 	
  

 
	
  

 	
 Provided Information or any portion thereof is presented together
 with or separately from such other information; or

 
	
  

 	
  

 
	
  

 	
           (b) any
 failure by [                    ] to
 deliver any Servicing Criteria assessment, information, report,
 certification, accountants’ letter or other material when and as required
 under Sections 11.14 and 11.15.

 
	
  

 	
  

 
	
  

 	
           (c) In the case of any failure of performance described in clause
 (a)(ii) of this Section,
 [                         ] shall promptly
 reimburse Seller for all costs reasonably incurred in order to obtain the
 information, report, certification, accountants’ letter or other material not
 delivered as required by [                    ].

 

Notwithstanding anything to the contrary contained herein, in no event
shall [                         ] be liable
for special, indirect or consequential damages of any kind whatsoever,
including but not limited to lost profits, even if
[                         ] has been advised
of the likelihood of such loss or damage and regardless of the form of action.

72

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

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 USAA
 ACCEPTANCE, LLC

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name: 

 	
  

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Title: 

 	
  

 	
  

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 USAA FEDERAL
 SAVINGS BANK, Servicer

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 	
  

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Title:

 	
  

 	
  

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 __________________________________________,
 Trustee

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 	
  

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Title:

 	
  

 	
  

 
	
  

 	
  

 	
  

 	

 

 

S-1

SCHEDULE A

LOCATION OF RECEIVABLE FILES

EXHIBIT
A

FORM OF CLASS A CERTIFICATE

_____% ASSET BACKED CERTIFICATE, CLASS A

Evidencing a fractional undivided interest in the Trust, as defined
below, the property of which includes a pool of fixed rate simple interest
retail motor vehicle loans and/or retail installment sales contracts (the
“Receivables”) secured by the new and used automobiles and light duty trucks
financed thereby (the “Financed Vehicles”) and sold to the Trust by USAA
Acceptance, LLC.

THIS CERTIFICATE REPRESENTS A FRACTIONAL UNDIVIDED INTEREST IN THE
TRUST AND DOES NOT REPRESENT AN INTEREST IN OR OBLIGATION OF
_____________________________. THIS CERTIFICATE AND THE RECEIVABLES ARE NOT
DEPOSITS AND ARE NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY.

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

	
  

 	
  

 	
  

 	
  

 
	
 NUMBER

 	
  

 	
 CUSIP 

 	
  

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 
	

 

 
	
 Original Certificate Amount

 

	
  

 	
  

 	
  

 
	
  

 	
 A-1

 	
 Exhibit A to the Pooling and Servicing
 Agreement

 

                    THIS
CERTIFIES THAT ___________________ is the registered owner of a ______________
dollars, nonassessable, fully paid, fractional undivided interest in USAA Auto
Owner Trust 20[   ]-[   ] (the “Trust”) formed pursuant to a Pooling and Servicing
Agreement dated as of ___________, 20__ (the “Agreement”) among USAA Acceptance,
LLC, a Delaware limited liability company (the “Seller”), USAA Federal Savings
Bank (the “Servicer”) and _____________, a _______________, as trustee (the
“Trustee”).

                    To
the extent not otherwise defined herein, the capitalized terms used herein have
the meanings assigned to them in the Agreement. This Certificate is one of the
duly authorized Certificates designated as “_____% Asset Backed Certificates,
Class A” (herein called the “Class A Certificates”). Also issued under the Agreement
are Certificates designated as “_____% Asset Backed Certificates, Class B” (the
“Class B Certificates”). The Class A Certificates and the Class B Certificates
are hereinafter collectively called the “Certificates.” This Certificate is
issued under and is subject to the terms, provisions, and conditions of the
Agreement, to which the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound. The Trust Property includes
(as more fully described in the Agreement) a pool of Receivables, certain
monies received under the Receivables after ___________ __, 20__ (the “Cutoff
Date”), security interests in the Financed Vehicles, and proceeds of the
foregoing.

                    Subject
to the terms and conditions of the Agreement (including the availability of
funds for distributions) and until the obligations created by the Agreement
shall have terminated in accordance therewith, there will be distributed, but
only from funds on deposit in the Class A Distribution Account, on the _____
day of each month or, if such _____ day is not a Business Day, the next
succeeding Business Day (each such date, a “Distribution Date”), commencing
_________ __, 20__, to the Person in whose name this Certificate is registered
at the close of business on the last day of the preceding Collection Period
(the “Record Date”), such Holder’s fractional undivided interest in the amounts
to be distributed to Class A Holders pursuant to the Agreement on such
Distribution Date.

                    Distributions
on this Certificate will be made by Trustee by check mailed to the Holder of
record at its address as it appears in the Certificate Register without the
presentation or surrender of this Certificate or the making of any notation
hereon, except that with respect to a Certificate registered in the name of a
Clearing Agency or its nominee, distributions will be made by wire transfer of
immediately available funds. Except as otherwise provided in the Agreement and
notwithstanding the above, the final distribution on this Certificate will be
made after due notice by Trustee of the pendency of such distribution and only
upon presentation and surrender of this Certificate at the office or agency
maintained for that purpose by Trustee.

                    This
Certificate does not purport to summarize the Agreement and reference is hereby
made to the Agreement for information with respect to the rights, benefits,
obligations and duties evidenced thereby.

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

	
  

 	
  

 	
  

 
	
  

 	
 A-2

 	
 Exhibit A to the Pooling and Servicing
 Agreement

 

                    Each
Holder, by its acceptance of a Certificate or a beneficial interest in a
Certificate, acknowledges and agrees that they intend that the Trust be
classified (for Federal tax purposes) as a grantor trust under Subpart E, Part
I of Subchapter J of the Internal Revenue Code of which the Holders are owners,
rather than as an association taxable as a corporation.

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

	
  

 	
  

 	
  

 
	
  

 	
 USAA AUTO OWNER TRUST
 20[     ]-[     ]

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 as Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Authorized Officer

 
	
  

 	
  

 
	
  

 	
 DATED:

 
	
  

 	
  

 
	
  

 	
 [SEAL]

 
	
  

 	
  

 
	
  

 	
 ATTEST:

 
	
  

 	
  

 
	
  

 	
 Authorized Officer

 

Trustee’s Certificate of Authentication:

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

	
  

 	
  

 	
  

 
	
  

 	
 ___________________________________________________,

 
	
  

 	
  

 	
 as Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Authorized Officer

 
	
  

 	
  

 	
  

 

	
  

 	
  

 	
  

 
	
  

 	
 A-3

 	
 Exhibit A to the Pooling and Servicing
 Agreement

 

EXHIBIT
B

FORM OF CLASS B CERTIFICATE

_____% ASSET BACKED CERTIFICATE, CLASS B

Evidencing a fractional undivided interest in the Trust, as defined
below, the property of which includes a pool of fixed rate simple interest
retail motor vehicle loans and/or retail installment sales contracts (the
“Receivables”) secured by the new and used automobiles and light duty trucks
financed thereby (the “Financed Vehicles”) and sold to the Trust by USAA
Acceptance, LLC.

THIS CERTIFICATE REPRESENTS A FRACTIONAL UNDIVIDED INTEREST IN THE
TRUST AND DOES NOT REPRESENT AN INTEREST IN OR OBLIGATION OF
_________________________ THIS CERTIFICATE AND THE RECEIVABLES ARE NOT DEPOSITS
AND ARE NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION
OR ANY OTHER GOVERNMENTAL AGENCY.

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

	
  

 	
  

 	
  

 	
  

 
	
 NUMBER

 	
  

 	
 CUSIP 

 	
  

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 
	

 

 
	
 Original Certificate Amount

 

	
  

 	
  

 	
  

 
	
  

 	
 B-1

 	
 Exhibit B to the Pooling and Servicing
 Agreement

 

                    THIS
CERTIFIES THAT ________________ is the registered owner of a _________________
dollars, nonassessable, fully paid, fractional undivided interest in USAA Auto
Owner Trust 20[  ]-[  ] (the “Trust”) formed pursuant to a Pooling and Servicing
Agreement dated as of ________ __, 20__ (the “Agreement”) among USAA
Acceptance, LLC, a Delaware limited liability company (the “Seller”), USAA
Federal Savings Bank (the “Servicer”) and _____________, a _____________, as
trustee (the “Trustee”).

                    To
the extent not otherwise defined herein, the capitalized terms used herein have
the meanings assigned to them in the Agreement. This Certificate is one of the
duly authorized Certificates designated as “_____% Asset Backed Certificates,
Class B” (herein called the “Class B Certificates”). Also issued under the
Agreement are Certificates designated as “_____% Asset Backed Certificates,
Class A” (the “Class A Certificates”). The Class A Certificates and the Class B
Certificates are hereinafter collectively called the “Certificates.” This
Certificate is issued under and is subject to the terms, provisions, and
conditions of the Agreement, to which the Holder of this Certificate by virtue
of the acceptance hereof assents and by which such Holder is bound. The Trust
Property includes (as more fully described in the Agreement) a pool of
Receivables, certain monies received under the Receivables after ________ __,
20__ (the “Cutoff Date”), security interests in the Financed Vehicles, and
proceeds of the foregoing. The rights of the Holder of the Class B Certificates
are subordinated to the rights of the Holders of the Class A Certificates to
the extent set forth in the Agreement.

                    Subject
to the terms and conditions of the Agreement (including the availability of
funds for distributions and the subordination of the Class B Certificates) and
until the obligations created by the Agreement shall have terminated in
accordance therewith, there will be distributed, but only from funds on deposit
in the Class B Distribution Account, on the _th day of each month or, if such
_th day is not a Business Day, the next succeeding Business Day (each such
date, a “Distribution Date”), commencing _______ _, 20__, to the Person in whose
name this Certificate is registered at the close of business on the last day of
the preceding Collection Period (the “Record Date”), such Holder’s fractional
undivided interest in the amounts to be distributed to Class B Holders pursuant
to the Agreement on such Distribution Date.

                    Distributions
on this Certificate will be made by Trustee by check mailed to the Holder of
record at its address as it appears in the Certificate Register without the
presentation or surrender of this Certificate or the making of any notation
hereon, except that with respect to a Certificate registered in the name of a
Clearing Agency or its nominee, distributions will be made by wire transfer of
immediately available funds. Except as otherwise provided in the Agreement and
notwithstanding the above, the final distribution on this Certificate will be
made after due notice by Trustee of the pendency of such distribution and only
upon presentation and surrender of this Certificate at the office or agency maintained
for that purpose by Trustee.

                    This
Certificate does not purport to summarize the Agreement and reference is hereby
made to the Agreement for information with respect to the rights, benefits,
obligations and duties evidenced thereby.

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

	
  

 	
  

 	
  

 
	
  

 	
 B-2

 	
 Exhibit B to the Pooling and Servicing
 Agreement

 

                    Each
Holder, by its acceptance of a Certificate or a beneficial interest in a
Certificate, acknowledges and agrees that they intend that the Trust be
classified (for Federal tax purposes) as a grantor trust under Subpart E, Part
I of Subchapter J of the Internal Revenue Code of which the Holders are owners,
rather than as an association taxable as a corporation.

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

	
  

 	
  

 	
  

 
	
  

 	
 USAA AUTO OWNER TRUST
 20[     ]-[     ]

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 _____________________________________, as Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Authorized Officer

 
	
  

 	
  

 
	
  

 	
 DATED:

 
	
  

 	
  

 
	
  

 	
 [SEAL]

 
	
  

 	
  

 
	
  

 	
 ATTEST:

 
	
  

 	
  

 
	
  

 	
 Authorized Officer

 

Trustee’s Certificate of Authentication:

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

	
  

 	
  

 	
  

 
	
  

 	
 _________________________________________, as Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Authorized Officer

 

	
  

 	
  

 	
  

 
	
  

 	
 B-3

 	
 Exhibit B to the Pooling and Servicing
 Agreement

 

EXHIBIT C

Form of Servicer’s Report

 

	
  

 	
  

 	
  

 
	
  

 	
 C-1

 	
 Exhibit C to the Pooling and Servicing
 Agreement

 

EXHIBIT D

SERVICING CRITERIA TO BE ADDRESSED IN

TRUSTEE’S ASSESSMENT OF COMPLIANCE

          The
assessment of compliance to be delivered by the Trustee shall address, at a
minimum, the criteria identified as below as “Applicable Servicing Criteria”:

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Servicing Criteria

 	
  

 	
 Applicable

 Servicing Criteria

 
	

 

 	

 

 	

 

 	
  

 	

 

 
	
  

 
	
 Reference

 	
  

 	
 Criteria

 	
  

 	
  

 
	

 

 	
  

 	

 

 	
  

 	

 

 
	
  

 
	
  

 	
  

 	
 General Servicing Considerations

 	
  

 	
  

 
	
 1122(d)(1)(i)

 	
  

 	
 Policies and procedures are
 instituted to monitor any performance or other triggers and events of default
 in accordance with the transaction agreements.

 	
  

 	
  

 
	
 1122(d)(1)(ii)

 	
  

 	
 If any material servicing
 activities are outsourced to third parties, policies and procedures are
 instituted to monitor the third party’s performance and compliance with such
 servicing activities.

 	
  

 	
  

 
	
 1122(d)(1)(iii)

 	
  

 	
 Any requirements in the transaction
 agreements to maintain a back-up servicer for the pool assets are maintained.

 	
  

 	
  

 
	
 1122(d)(1)(iv)

 	
  

 	
 A fidelity bond and errors and
 omissions policy is in effect on the party participating in the servicing
 function throughout the reporting period in the amount of coverage required
 by and otherwise in accordance with the terms of the transaction agreements.

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Cash Collection and Administration

 	
  

 	
  

 
	
 1122(d)(2)(i)

 	
  

 	
 Payments on pool assets are
 deposited into the appropriate custodial bank accounts and related bank
 clearing accounts no more than two business days following receipt, or such
 other number of days specified in the transaction agreements.

 	
  

 	
 X1

 
	
 1122(d)(2)(ii)

 	
  

 	
 Disbursements made via wire
 transfer on behalf of an obligor or to an investor are made only by
 authorized personnel.

 	
  

 	
 X

 
	
 1122(d)(2)(iii)

 	
  

 	
 Advances of funds or guarantees
 regarding collections, cash flows or distributions, and any interest or other
 fees charged for such advances, are made, reviewed and approved as specified
 in the transaction agreements.

 	
  

 	
  

 
	
 1122(d)(2)(iv)

 	
  

 	
 The related accounts for the
 transaction, such as cash reserve accounts or accounts established as a form
 of overcollateralization, are separately maintained (e.g., with respect to
 commingling of cash) as set forth in the transaction agreements.

 	
  

 	
  

 
	
 1122(d)(2)(v)

 	
  

 	
 Each custodial account is
 maintained at a federally insured depository institution as set forth in the
 transaction agreements. For purposes of this criterion, “federally insured
 depository institution” with respect to a foreign financial institution means
 a foreign financial institution that meets the requirements of Rule
 13k-1(b)(1) of the Securities Exchange Act.

 	
  

 	
  

 
	
 1122(d)(2)(vi)

 	
  

 	
 Unissued checks are safeguarded
 so as to prevent unauthorized access.

 	
  

 	
  

 
	
 1122(d)(2)(vii)

 	
  

 	
 Reconciliations are prepared on a
 monthly basis for all asset-backed securities related bank accounts,
 including custodial accounts and related bank clearing accounts. These
 reconciliations are (A) mathematically accurate; (B) prepared within 30
 calendar days after the bank statement cutoff date, or such other number of
 days specified in the transaction agreements; (C) reviewed and approved by
 someone other than the person who prepared the reconciliation; and (D)
 contain explanations for reconciling items. These reconciling items are
 resolved within 90 calendar days of their original identification, or such
 other number of days specified in the 

 	
  

 	
  

 

	
  

 	
  

 
	

 
	
 1

 	
 Solely with
 regard to deposits made by Trustee.

 

	
  

 	
  

 	
  

 
	
  

 	
 D-1

 	
 Exhibit D to the Pooling and Servicing
 Agreement

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Servicing Criteria

 	
  

 	
 Applicable

 Servicing Criteria

 
	

 

 	

 

 	

 

 	
  

 	

 

 
	
  

 
	
 Reference

 	
  

 	
 Criteria

 	
  

 	
  

 
	

 

 	
  

 	

 

 	
  

 	

 

 
	
  

 	
  

 	
 transaction agreements.

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Investor Remittances and Reporting

 	
  

 	
  

 
	
 1122(d)(3)(i)

 	
  

 	
 Reports to investors, including
 those to be filed with the Commission, are maintained in accordance with the
 transaction agreements and applicable Commission requirements. Specifically,
 such reports (A) are prepared in accordance with timeframes and other terms
 set forth in the transaction agreements; (B) provide information calculated
 in accordance with the terms specified in the transaction agreements; (C) are
 filed with the Commission as required by its rules and regulations; and (D)
 agree with investors’ or the trustee’s records as to the total unpaid
 principal balance and number of pool assets serviced by the Servicer.

 	
  

 	
  

 
	
 1122(d)(3)(ii)

 	
  

 	
 Amounts due to investors are
 allocated and remitted in accordance with timeframes, distribution priority
 and other terms set forth in the transaction agreements.

 	
  

 	
 X

 
	
 1122(d)(3)(iii)

 	
  

 	
 Disbursements made to an investor
 are posted within two business days to the Servicer’s investor records, or
 such other number of days specified in the transaction agreements.

 	
  

 	
 X

 
	
 1122(d)(3)(iv)

 	
  

 	
 Amounts remitted to investors per
 the investor reports agree with cancelled checks, or other form of payment,
 or custodial bank statements.

 	
  

 	
 X

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Pool Asset Administration

 	
  

 	
  

 
	
 1122(d)(4)(i)

 	
  

 	
 Collateral or security on pool
 assets is maintained as required by the transaction agreements or related
 asset pool documents.

 	
  

 	
  

 
	
 1122(d)(4)(ii)

 	
  

 	
 Pool assets and related documents
 are safeguarded as required by the transaction agreements

 	
  

 	
  

 
	
 1122(d)(4)(iii)

 	
  

 	
 Any additions, removals or
 substitutions to the asset pool are made, reviewed and approved in accordance
 with any conditions or requirements in the transaction agreements.

 	
  

 	
  

 
	
 1122(d)(4)(iv)

 	
  

 	
 Payments on pool assets,
 including any payoffs, made in accordance with the related pool asset
 documents are posted to the Servicer’s obligor records maintained no more
 than two business days after receipt, or such other number of days specified
 in the transaction agreements, and allocated to principal, interest or other
 items (e.g., escrow) in accordance with the related asset pool documents.

 	
  

 	
  

 
	
 1122(d)(4)(v)

 	
  

 	
 The Servicer’s records regarding
 the accounts and the accounts agree with the Servicer’s records with respect
 to an obligor’s unpaid principal balance.

 	
  

 	
  

 
	
 1122(d)(4)(vi)

 	
  

 	
 Changes with respect to the terms
 or status of an obligor’s account (e.g., loan modifications or re-agings) are
 made, reviewed and approved by authorized personnel in accordance with the
 transaction agreements and related pool asset documents.

 	
  

 	
  

 
	
 1122(d)(4)(vii)

 	
  

 	
 Loss mitigation or recovery
 actions (e.g., forbearance plans, modifications and deeds in lieu of
 foreclosure, foreclosures and repossessions, as applicable) are initiated,
 conducted and concluded in accordance with the timeframes or other
 requirements established by the transaction agreements.

 	
  

 	
  

 

	
  

 	
  

 	
  

 
	
  

 	
 D-2

 	
 Exhibit D to the Pooling and Servicing
 Agreement

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Servicing Criteria

 	
  

 	
 Applicable

 Servicing Criteria

 
	

 

 	

 

 	

 

 	
  

 	

 

 
	
  

 
	
 Reference

 	
  

 	
 Criteria

 	
  

 	
  

 
	

 

 	
  

 	

 

 	
  

 	

 

 
	
 1122(d)(4)(viii)

 	
  

 	
 Records documenting collection
 efforts are maintained during the period a pool asset is delinquent in
 accordance with the transaction agreements. Such records are maintained on at
 least a monthly basis, or such other period specified in the transaction
 agreements, and describe the entity’s activities in monitoring delinquent
 pool assets including, for example, phone calls, letters and payment
 rescheduling plans in cases where delinquency is deemed temporary (e.g.,
 illness or unemployment).

 	
  

 	
  

 
	
 1122(d)(4)(ix)

 	
  

 	
 Adjustments to interest rates or
 rates of return for pool assets with variable rates are computed based on the
 related pool asset documents.

 	
  

 	
  

 
	
 1122(d)(4)(x)

 	
  

 	
 Regarding any funds held in trust
 for an obligor (such as escrow accounts): (A) such funds are analyzed, in
 accordance with the obligor’s Account documents, on at least an annual basis,
 or such other period specified in the transaction agreements; (B) interest on
 such funds is paid, or credited, to obligors in accordance with applicable
 Account documents and state laws; and (C) such funds are returned to the
 obligor within 30 calendar days of full repayment of the related Accounts, or
 such other number of days specified in the transaction agreements.

 	
  

 	
  

 
	
 1122(d)(4)(xi)

 	
  

 	
 Payments made on behalf of an
 obligor (such as tax or insurance payments) are made on or before the related
 penalty or expiration dates, as indicated on the appropriate bills or notices
 for such payments, provided that such support has been received by the
 servicer at least 30 calendar days prior to these dates, or such other number
 of days specified in the transaction agreements.

 	
  

 	
  

 
	
 1122(d)(4)(xii)

 	
  

 	
 Any late payment penalties in
 connection with any payment to be made on behalf of an obligor are paid from
 the servicer’s funds and not charged to the obligor, unless the late payment
 was due to the obligor’s error or omission.

 	
  

 	
  

 
	
 1122(d)(4)(xiii)

 	
  

 	
 Disbursements made on behalf of
 an obligor are posted within two business days to the obligor’s records
 maintained by the servicer, or such other number of days specified in the
 transaction agreements.

 	
  

 	
  

 
	
 1122(d)(4)(xiv)

 	
  

 	
 Delinquencies, charge-offs and
 uncollectible accounts are recognized and recorded in accordance with the
 transaction agreements.

 	
  

 	
  

 
	
 1122(d)(4)(xv)

 	
  

 	
 Any external enhancement or other
 support, identified in Item 1114(a)(1) through (3) or Item 1115 of Regulation
 AB, is maintained as set forth in the transaction agreements.

 	
  

 	
  

 

	
  

 	
  

 	
  

 
	
  

 	
 D-3

 	
 Exhibit D to the Pooling and Servicing
 Agreement

 

EXHIBIT
E

FORM
OF TRUSTEE’S ANNUAL CERTIFICATION

	
  

 	
  

 
	
 Re:

 	
 USAA AUTO OWNER TRUST
 20[     ]-[     ]

 

                    [  ],
not in its individual capacity but solely as trustee (the “Trustee”), certifies
to USAA Acceptance, LLC (the “Seller”), and its officers, with the knowledge
and intent that they will rely upon this certification, that:

	
  

 	
  

 
	
  

 	
           (1) It
 has reviewed the report on assessment of the Trustee’s compliance provided in
 accordance with Rules 13a-18 and 15d-18 under the Securities Exchange Act of
 1934, as amended (the “Exchange Act”) and Item 1122 of Regulation AB (the
 “Servicing Assessment”), and the registered public accounting firm’s attestation
 report provided in accordance with Rules 13a-18 and 15d-18 under the Exchange
 Act and Section 1122(b) of Regulation AB (the “Attestation Report”) that were
 delivered by the Trustee to Seller pursuant to the Pooling and Servicing
 Agreement (the “Agreement”), dated as of [          ], 20[  ] by and among Bank,
 Seller, the Trustee and USAA Auto Owner Trust 20[  ]-[  ] (collectively, the
 “Trustee Information”);

 
	
  

 	
  

 
	
  

 	
           (2) To
 the best of its knowledge, the Trustee Information, taken as a whole, does
 not contain any untrue statement of a material fact or omit to state a
 material fact necessary to make the statements made, in the light of the
 circumstances under which such statements were made, not misleading with
 respect to the period of time covered by the Trustee Information;

 
	
  

 
	
  

 	
           (3) To
 the best of its knowledge, all of the Trustee Provided Information (as
 defined in Section 11.16 of the Agreement) required to be provided by
 the Trustee under the Agreement has been provided to Seller; and

 
	
  

 	
  

 
	
  

 	
           (4) To the best of its knowledge, except as disclosed in the
 Servicing Assessment or the Attestation Report, the Trustee has fulfilled its
 obligations under the Agreement.

 

	
  

 	
  

 	
  

 
	
  

 	
 [     
 ], not in its individual capacity but solely as Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
 Date:

 	
  

 
	
  

 	
  

 	

 

 

	
  

 	
  

 	
  

 
	
  

 	
 E-1

 	
 Exhibit E to the Pooling and Servicing
 Agreement

 

EXHIBIT
F

FORM
OF TRUSTEE’S ANNUAL CERTIFICATION

REGARDING ITEM 1117 AND ITEM 1119 OF REGULATION AB

                    Reference
is made to the Form 10-K of USAA Auto Owner Trust
20[  ]-[  ] (the “Form
10-K”) for the fiscal year ended December 31,
20[   ]. Capitalized terms used but not otherwise
defined herein shall have the respective meanings given to them in the Form
10-K.

                    [                         ],
a [                   ] (“[     ]”), does
hereby certify to the Sponsor, the Depositor and the Issuing Entity that:

               1.
As of the date of the Form 10-K, there are no pending legal proceedings against
[          ] or proceedings
known to be contemplated by governmental authorities against
[          ] that would be
material to the investors in the Certificates.

               2.
As of the date of the Form 10-K, there are no affiliations, as contemplated by
Item 1119 of Regulation AB, between [          ]
and any of USAA Federal Savings Bank (in its capacities as Sponsor, Originator,
Servicer and Administrator), USAA Acceptance, LLC, the Indenture Trustee, the
Owner Trustee and the Issuing Entity, or any affiliates of such parties.

          IN WITNESS
WHEREOF, [          ] has
caused this certificate to be executed in its corporate name by an officer
thereunto duly authorized.

Dated: ____________, 20[     ]

	
  

 	
  

 	
  

 
	
  

 	
[                                        ],
as Trustee 

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 
	
  

 	
 Title:

 

	
  

 	
  

 	
  

 
	
  

 	
 F-1

 	
 Exhibit F to the Pooling and Servicing
 AgreementEXHIBIT 10.1

	
 

	
FORM OF

	
 

	
SALE AND SERVICING AGREEMENT

	
 

	
by and among

	
 

	
USAA AUTO OWNER TRUST 20[  ]-[  ],

	
 

	
as Issuer

	
 

	
USAA ACCEPTANCE, LLC,

	
 

	
as Seller

	
 

	
USAA FEDERAL SAVINGS BANK,

	
 

	
as Servicer

	
 

	
and

	
 

	
 [                      ],

	
 

	
as Indenture Trustee

	
 

	
Dated as of [      ], 20[  ]

TABLE OF CONTENTS

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE I

	
DEFINITIONS AND USAGE

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
SECTION 1.1

	
Definitions

	
 

	
1

	
 

	
SECTION 1.2

	
Other Interpretive
Provisions

	
 

	
1

	
 

	
 

	
 

	
 

	
 

	
ARTICLE II

	
CONVEYANCE OF TRANSFERRED
ASSETS

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
SECTION 2.1

	
Conveyance of Transferred
Assets

	
 

	
2

	
 

	
SECTION 2.2

	
Representations and
Warranties of the Seller as to each Receivable

	
 

	
2

	
 

	
SECTION 2.3

	
Repurchase upon Breach

	
 

	
2

	
 

	
SECTION 2.4

	
Custody of Receivable
Files

	
 

	
3

	
 

	
 

	
 

	
 

	
 

	
ARTICLE III

	
ADMINISTRATION AND
SERVICING OF RECEIVABLES AND TRUST PROPERTY

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
SECTION 3.1

	
Duties of Servicer

	
 

	
5

	
 

	
SECTION 3.2

	
Collection of Receivable
Payments

	
 

	
6

	
 

	
SECTION 3.3

	
Realization Upon
Receivables

	
 

	
8

	
 

	
SECTION 3.4

	
Maintenance of Security
Interests in Financed Vehicles

	
 

	
8

	
 

	
SECTION 3.5

	
Covenants of Servicer

	
 

	
8

	
 

	
SECTION 3.6

	
Purchase of Receivables
Upon Breach

	
 

	
9

	
 

	
SECTION 3.7

	
Servicing Fee

	
 

	
9

	
 

	
SECTION 3.8

	
Servicer’s Certificate

	
 

	
9

	
 

	
SECTION 3.9

	
Annual Officer’s
Certificate; Notice of Servicer Replacement Event

	
 

	
9

	
 

	
SECTION 3.10

	
Annual Registered Public
Accounting Firm Attestation Report

	
 

	
10

	
 

	
SECTION 3.11

	
Servicer Expenses

	
 

	
10

	
 

	
SECTION 3.12

	
Exchange Act Filings

	
 

	
10

	
 

	
 

	
 

	
 

	
 

	
ARTICLE IV

	
DISTRIBUTIONS; ACCOUNTS;
STATEMENTS TO THE CERTIFICATEHOLDER AND THE NOTEHOLDERS

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
SECTION 4.1

	
Establishment of Accounts

	
 

	
11

	
 

	
SECTION 4.2

	
Remittances

	
 

	
13

	
 

	
SECTION 4.3

	
Additional Deposits and
Payments[; Servicer Advances]

	
 

	
14

	
 

	
SECTION 4.4

	
Distributions

	
 

	
14

	
 

	
SECTION 4.5

	
Net Deposits

	
 

	
16

	
 

	
SECTION 4.6

	
Statements to Certificateholder
and Noteholders

	
 

	
16

	
 

	
SECTION 4.7

	
No Duty to Confirm

	
 

	
18

	
 

	
[SECTION 4.8

	
Interest Rate Swap
Agreement.]

	
 

	
18

	
 

	
 

	
 

	
 

	
 

	
ARTICLE V

	
THE SELLER

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
SECTION 5.1

	
Representations and
Warranties of Seller

	
 

	
20

	
 

	
SECTION 5.2

	
Liability of Seller; Indemnities

	
 

	
21

i

TABLE OF CONTENTS

(continued)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
SECTION 5.3

	
Merger or Consolidation
of, or Assumption of the Obligations of, Seller

	
 

	
22

	
 

	
SECTION 5.4

	
Limitation on Liability of
Seller and Others

	
 

	
22

	
 

	
SECTION 5.5

	
Seller May Own Notes

	
 

	
22

	
 

	
SECTION 5.6

	
Sarbanes-Oxley Act
Requirements

	
 

	
23

	
 

	
SECTION 5.7

	
Compliance with
Organizational Documents

	
 

	
23

	
 

	
SECTION 5.8

	
Perfection
Representations, Warranties and Covenants

	
 

	
23

	
 

	
 

	
 

	
 

	
ARTICLE VI

	
THE SERVICER

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
SECTION 6.1

	
Representations of
Servicer

	
 

	
23

	
 

	
SECTION 6.2

	
Indemnities of Servicer

	
 

	
24

	
 

	
SECTION 6.3

	
Merger or Consolidation
of, or Assumption of the Obligations of, Servicer

	
 

	
25

	
 

	
SECTION 6.4

	
Limitation on Liability of
Servicer and Others

	
 

	
26

	
 

	
SECTION 6.5

	
Delegation of Duties

	
 

	
26

	
 

	
SECTION 6.6

	
The Bank Not to Resign as
Servicer

	
 

	
27

	
 

	
SECTION 6.7

	
Servicer May Own Notes

	
 

	
27

	
 

	
 

	
 

	
 

	
 

	
ARTICLE VII

	
REPLACEMENT OF SERVICER

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
SECTION 7.1

	
Replacement of Servicer

	
 

	
27

	
 

	
SECTION 7.2

	
Notification to
Noteholders

	
 

	
29

	
 

	
 

	
 

	
 

	
 

	
ARTICLE VIII 

	
OPTIONAL PURCHASE

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
SECTION 8.1

	
Optional Purchase of Trust
Estate

	
 

	
29

	
 

	
 

	
 

	
 

	
 

	
ARTICLE IX

	
MISCELLANEOUS PROVISIONS

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
SECTION 9.1

	
Amendment

	
 

	
29

	
 

	
SECTION 9.2

	
Protection of Title

	
 

	
31

	
 

	
SECTION 9.3

	
Other Liens or Interests

	
 

	
32

	
 

	
SECTION 9.4

	
Transfers Intended as
Sale; Security Interest

	
 

	
32

	
 

	
SECTION 9.5

	
Notices, Etc

	
 

	
33

	
 

	
SECTION 9.6

	
Choice of Law

	
 

	
34

	
 

	
SECTION 9.7

	
Headings

	
 

	
34

	
 

	
SECTION 9.8

	
Counterparts

	
 

	
34

	
 

	
SECTION 9.9

	
Waivers

	
 

	
34

	
 

	
SECTION 9.10

	
Entire Agreement

	
 

	
34

	
 

	
SECTION 9.11

	
Severability of Provisions

	
 

	
34

	
 

	
SECTION 9.12

	
Binding Effect

	
 

	
34

	
 

	
SECTION 9.13

	
Acknowledgment and
Agreement

	
 

	
34

	
 

	
SECTION 9.14

	
Cumulative Remedies

	
 

	
35

	
 

	
SECTION 9.15

	
Nonpetition Covenant

	
 

	
35

	
 

	
SECTION 9.16

	
Submission to
Jurisdiction; Waiver of Jury Trial

	
 

	
35

ii

TABLE OF CONTENTS

(continued)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
SECTION 9.17

	
Limitation of Liability

	
 

	
36

	
 

	
SECTION 9.18

	
Third-Party Beneficiaries

	
 

	
36

	
 

	
SECTION 9.19

	
Information Requests

	
 

	
36

	
 

	
SECTION 9.20

	
Regulation AB

	
 

	
36

	
 

	
SECTION 9.21

	
Information to Be Provided
by the Indenture Trustee

	
 

	
37

	
 

	
SECTION 9.22

	
Form 8-K Filings

	
 

	
38

	
 

	
SECTION 9.23

	
Indemnification

	
 

	
39

	
 

	
SECTION 9.24

	
Further Assurances

	
 

	
39

	
 

	
SECTION 9.25

	
Cooperation

	
 

	
39

	
 

	
SECTION 9.26

	
[Limitation of Rights

	
 

	
40

	
 

	
SECTION 9.27

	
Rights of the
Certificateholder

	
 

	
40

	
 

	
 

	
Appendix A

	
Definitions

	
 

	
 

	
Schedule I

	
Representations and
Warranties With Respect to the Receivables

	
Schedule II

	
Notice Addresses

	
 

	
 

	
Exhibit A

	
Form of Assignment
pursuant to Sale and Servicing Agreement

	
Exhibit B

	
Perfection
Representations, Warranties and Covenants

	
Exhibit C

	
Servicing Criteria to be
Addressed in Indenture Trustee’s Assessment of Compliance

	
Exhibit D

	
Form of Indenture
Trustee’s Annual Certification

	
Exhibit E

	
Form of Indenture
Trustee’s Annual Certification Regarding Item 1117 and Item 1119 of Regulation AB

iii

          SALE AND
SERVICING AGREEMENT, dated as of
[       ], 20[  ] (together with
all exhibits, schedules and appendices hereto and as from time to time amended,
supplemented or otherwise modified and in effect, this “Agreement”), by
and among USAA
AUTO OWNER TRUST 20[  ]-[  ] (the “Issuer”),
a Delaware statutory trust, USAA ACCEPTANCE, LLC, a Delaware limited
liability company, as seller (the “Seller”), USAA FEDERAL SAVINGS BANK, a
federally chartered savings association (the “Bank”), as servicer (in
such capacity, the “Servicer”), and
[                   ],
a
[                 ],
as indenture trustee (the “Indenture Trustee”).

          WHEREAS,
the Issuer desires to purchase from the Seller a portfolio of motor vehicle
receivables, including retail motor vehicle installment loans that are secured
by new and used automobiles and light-duty trucks;

          WHEREAS,
the Seller is willing to sell such portfolio of motor vehicle receivables and
related property to the Issuer; and

          WHEREAS,
the Bank is willing to service such motor vehicle receivables and related
property on behalf of the Issuer;

          NOW,
THEREFORE, in consideration of the premises and the mutual covenants herein
contained, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto, intending to
be legally bound, agree as follows:

ARTICLE I

DEFINITIONS AND USAGE

          SECTION
1.1 Definitions. Except as otherwise specified herein or as the context
may otherwise require, capitalized terms used but not otherwise defined herein
are defined in Appendix A hereto.

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

(h) unless the
context otherwise requires, defined terms shall be equally applicable to both
the singular and plural forms.

ARTICLE II

CONVEYANCE OF TRANSFERRED ASSETS

          SECTION
2.1 Conveyance of Transferred Assets. In consideration of the Issuer’s
sale and delivery to, or upon the order of, the Seller of all of the Notes and
the Certificate on the Closing Date, the Seller does hereby irrevocably sell,
transfer, assign and otherwise convey to the Issuer without recourse (subject
to the obligations herein) all right, title and interest of the Seller, whether
now owned or hereafter acquired, in and to the Transferred Assets, described in
the assignment substantially in the form of Exhibit A (the “Assignment”)
delivered on the Closing Date. The sale, transfer, assignment and conveyance
made hereunder will not constitute and is not intended to result in an
assumption by the Issuer of any obligation of the Seller or the Originator to
the Obligors or any other Person in connection with the Receivables or the
other assets and properties conveyed hereunder or any agreement, document or
instrument related thereto.

          SECTION
2.2 Representations and Warranties of the Seller as to each Receivable.
The Seller hereby makes the representations and warranties set forth on Schedule
I as to the Receivables sold, transferred, assigned, and otherwise conveyed
to the Issuer under this Agreement on which such representations and warranties
the Issuer relies in acquiring the Receivables. The representations and
warranties as to each Receivable shall survive the Grant of the Receivables by
the Issuer to the Indenture Trustee pursuant to the Indenture. Notwithstanding
any statement to the contrary contained herein or in any other Transaction
Document, the Seller shall not be required to notify any insurer with respect
to any Insurance Policy obtained by an Obligor.

          SECTION
2.3 Repurchase upon Breach. Upon discovery by any party hereto of a
breach of any of the representations and warranties set forth in Section 2.2
at the time such representations and warranties were made which materially and
adversely affects the interests of the Issuer or the Noteholders, the party
discovering such breach shall give prompt written notice thereof to the other
parties hereto; provided, that delivery of the Servicer’s
Certificate which identifies that Receivables are being or have been
repurchased shall be deemed to constitute prompt notice by the Servicer (if the
Bank is the Servicer) of such breach; provided, further, that the failure to give
such notice shall not affect any obligation of the Seller hereunder. If the
Seller does not correct or cure such breach prior to the end of the Collection
Period which includes the 60th day (or, if the Seller elects, an earlier date)
after the date that the Seller became aware or was notified of such breach,
then the Seller shall purchase any Receivable materially and adversely affected
by such breach from the Issuer on the Payment Date following the end of such
Collection Period (or, if the Seller elects, an earlier date). Any such breach
or failure will be deemed to not have a material and adverse effect if such breach
or failure does not affect the ability of the Issuer to collect, receive and
retain timely payment in full on such Receivable, including Liquidation
Proceeds. Any such purchase by the Seller shall be at a price equal to the
Repurchase Price. In consideration for such repurchase, the Seller shall make
(or shall cause to be made) a payment to the Issuer equal to the Repurchase
Price by depositing such amount into 

	
 

	
 

	
 

	
 

	
2

	
Sale and Servicing Agreement

(USAA 20[ ]-[ ]) 

the Collection
Account prior to [     ] [a.m.], New York City time on
such Payment Date, or earlier date, if elected by the Seller. Upon payment of
such Repurchase Price by the Seller, the Issuer and the Indenture Trustee shall
release and shall execute and deliver such instruments of release, transfer or
assignment, in each case without recourse or representation, as shall be
reasonably requested of it to vest in the Seller or its designee any Receivable
repurchased pursuant hereto. It is understood and agreed that the right to
cause the Seller to repurchase (or to enforce the obligations of the Bank under
the Purchase Agreement to repurchase) any Receivable as described above shall
constitute the sole remedy respecting such breach available to the Issuer and
the Indenture Trustee. Neither the Owner Trustee nor the Indenture Trustee will
have any duty to conduct an affirmative investigation as to the occurrence of
any condition requiring the repurchase of any Receivable pursuant to this Section
2.3. Notwithstanding anything herein to the contrary, the Seller shall only
be obligated to pay such Repurchase Price and repurchase the related Receivable
to the extent it receives the Repurchase Price from the Bank pursuant to Section
3.3 of the Purchase Agreement.

          SECTION
2.4 Custody of Receivable Files.

          (a)
Custody. To assure uniform quality in servicing the Receivables and to
reduce administrative costs, the Issuer and the Indenture Trustee, upon the
execution and delivery of this Agreement, hereby revocably appoint the
Servicer, and the Servicer hereby accepts such appointment, to act solely on
behalf of and for the benefit of the Indenture Trustee as custodian of the
following documents or instruments, but only to the extent held in tangible
paper form or electronic form, which are hereby or will hereby be
constructively delivered to the Indenture Trustee (or its agent or designee),
as pledgee of the Issuer pursuant to the Indenture with respect to each
Receivable (but only to the extent applicable to such Receivable and only to
the extent held in tangible paper form) (the “Receivable Files”):

	
 

	
 

	
 

	
 

	
(i)

	
the fully
executed original of the retail motor vehicle installment loan or promissory
note and security agreement related to such Receivable (with respect to
tangible chattel paper) or an “authoritative copy” (as such term is used in
Section 9-105 of the UCC) of the Receivable (with respect to electronic
chattel paper) or, if no such original executed Receivable or authoritative
copy exists, a copy thereof, including any written amendments or extensions
thereto;

	
 

	
 

	
 

	
 

	
(ii)

	
the original
credit application or a photocopy thereof to the extent held in paper form;

	
 

	
 

	
 

	
 

	
(iii)

	
the original
Certificate of Title or, if not yet received, evidence that an application
therefor has been submitted with the appropriate authority or such other
document (electronic or otherwise, as used in the applicable jurisdiction)
that the Servicer keeps on file, in accordance with its Customary Servicing
Practices, evidencing the security interest of the Originator in the Financed
Vehicle; provided, however, that in lieu of being held in the Receivable
File, the Certificate of Title may be held by a third party service provider
engaged by the Servicer to obtain or hold Certificates of Title; and

	
 

	
 

	
 

	
 

	
3

	
Sale and Servicing Agreement

(USAA 20[ ]-[ ]) 

	
 

	
 

	
 

	
 

	
(iv)

	
any and all
other documents that the Servicer or the Seller keeps on file, in accordance
with its Customary Servicing Practices, relating to a Receivable, an Obligor
or a Financed Vehicle (but only to the extent applicable to such Receivable
and only to the extent held in tangible paper form or electronic form).

The foregoing
appointment of the Servicer is deemed to be made with due care.

          (b)
Safekeeping. The Servicer, in its capacity as custodian, shall hold the
Receivable Files for the benefit of the Issuer and the Indenture Trustee, as
pledgee of the Issuer. In performing its duties as custodian, the Servicer
shall act in accordance with its Customary Servicing Practices. The Servicer,
in accordance with its Customary Servicing Practices: (i) may maintain all or a
portion of the Receivable Files in electronic form and (ii) may maintain
custody of all or any portion of the Receivable Files with one or more of its
agents or designees.

          (c)
Maintenance of and Access to Records. The Servicer will maintain each
Receivable File in the United States (it being understood that the Receivable
Files, or any part thereof, may be maintained at the offices of any Person to
whom the Servicer has delegated responsibilities in accordance with Section
6.5). The Servicer will make available to the Issuer and the Indenture
Trustee or their duly authorized representatives, attorneys or auditors a list
of locations of the Receivable Files upon request. The Servicer will provide
access to the Receivable Files, and the related accounts records, and computer
systems maintained by the Servicer at such times as the Issuer or the Indenture
Trustee direct, but only upon reasonable notice and during the normal business
hours, which do not unreasonably interfere with the Servicer’s normal
operations, at the respective offices of the Servicer.

          (d)
Release of Documents. Upon written instructions from the Indenture
Trustee, the Servicer will release or cause to be released any document in the
Receivable Files to the Indenture Trustee, the Indenture Trustee’s agent or the
Indenture Trustee’s designee, as the case may be, at such place or places as
the Indenture Trustee may designate, as soon thereafter as is practicable, to
the extent it does not unreasonably interfere with the Servicer’s normal
operations. The Servicer shall not be responsible for any loss occasioned by
the failure of the Indenture Trustee or its agent or designee to return any
document or any delay in doing so. Any document so released will be handled by
the Indenture Trustee with due care and returned to the Servicer for
safekeeping as soon as the Indenture Trustee or its agent or designee, as the
case may be, has no further need therefor.

          (e)
Instructions; Authority to Act. All instructions from the Indenture
Trustee will be in writing and signed by a Responsible Officer of the Indenture
Trustee, and the Servicer will be deemed to have received proper instructions
with respect to the Receivable Files upon its receipt of such written
instructions. 

          (f)
Custodian’s Indemnification. Subject to Section 6.2, the Servicer
as custodian will indemnify the Issuer and the Indenture Trustee for any and
all liabilities, obligations, losses, compensatory damages, payments, costs, or
expenses of any kind whatsoever that may be imposed on, incurred by, or
asserted against the Issuer or the Indenture Trustee as the result of any
improper act or omission in any way relating to the maintenance and custody by
the Servicer 

	
 

	
 

	
 

	
 

	
4

	
Sale and Servicing Agreement

(USAA 20[ ]-[ ]) 

as custodian
of the Receivable Files; provided,
however, that the Servicer will
not be liable (i) to the Indenture Trustee or the Issuer for any portion of any
such amount resulting from the willful misconduct, bad faith or negligence of
the Indenture Trustee or the Issuer or (ii) to the Indenture Trustee for any
portion of any such amount resulting from the failure of the Indenture Trustee,
the Indenture Trustee’s agent or the Indenture Trustee’s designee to handle
with due care any Certificate of Title or other document released to the
Indenture Trustee or the Indenture Trustee’s agent or designee pursuant to Section
2.4(d).

          (g)
Effective Period and Termination. The Servicer’s appointment as
custodian will become effective as of the Cut-Off Date and will continue in
full force and effect until terminated pursuant to this Section 2.4(g).
If the Bank resigns as Servicer in accordance with Section 6.6 or if all
of the rights and obligations of the Servicer have been terminated under Section
7.1, the appointment of the Servicer as custodian hereunder may be
terminated by the Indenture Trustee, or by the Noteholders evidencing not less
than 662⁄3% of the Note Balance of the Controlling Class, in the same
manner as the Indenture Trustee or such Noteholders may terminate the rights
and obligations of the Servicer under Section 7.1. As soon as
practicable after any termination of such appointment, the Servicer will
deliver to the Indenture Trustee (or, at the direction of the Indenture
Trustee, to its agent) the Receivable Files and the related accounts and
records maintained by the Servicer at such place or places as the Indenture
Trustee may reasonably designate; provided, however, that with respect to
authoritative copies of the Receivables constituting electronic chattel paper,
the Servicer, in its sole discretion, shall either (i) continue to hold any
such authoritative copies on behalf of the Issuer and the Indenture Trustee or
the Indenture Trustee’s agent or (ii) deliver copies of such authoritative
copies and destroy the authoritative copies maintained by the Servicer prior to
its termination such that such copy delivered to the Indenture Trustee or the
Indenture Trustee’s agent becomes the authoritative copy of the Receivable
constituting electronic chattel paper.

ARTICLE III

ADMINISTRATION AND SERVICING OF

RECEIVABLES AND TRUST PROPERTY

          SECTION
3.1 Duties of Servicer.

          (a)
The Servicer is hereby appointed by the Issuer and authorized to act as agent
for the Issuer and in such capacity shall manage, service, administer and make
collections on the Receivables in accordance with its Customary Servicing
Practices, using the degree of skill and attention that the Servicer exercises
with respect to all comparable motor vehicle receivables that it services for
itself or others. The Servicer’s duties will include collection and posting of
all payments, responding to inquiries of Obligors on such Receivables,
investigating delinquencies, sending invoices or payment coupons to Obligors,
reporting any required tax information to Obligors, accounting for collections
and furnishing monthly and annual statements to the Indenture Trustee with
respect to distributions. The Servicer is not required under the Transaction
Documents to make any disbursements via wire transfer or otherwise on behalf of
an Obligor. There are no requirements under the Receivables or the Transaction
Documents for funds to be, and funds shall not be, held in trust for an
Obligor. No payments or disbursements are required to be made by the Servicer
on behalf of the Obligor. The Servicer hereby accepts 

	
 

	
 

	
 

	
 

	
5

	
Sale and Servicing Agreement

(USAA 20[ ]-[ ]) 

such appointment
and authorization and agrees to perform the duties of Servicer with respect to
the Receivables set forth herein.

          (b)
The Servicer will follow its Customary Servicing Practices and will have full
power and authority to do any and all things in connection with such managing,
servicing, administration and collection that it may deem necessary or
desirable. Without limiting the generality of the foregoing, the Servicer is
hereby authorized and empowered to execute and deliver, on behalf of itself,
the Issuer, the Owner Trustee, the Indenture Trustee, the Noteholders, the
Certificateholder, or any of them, any and all instruments of satisfaction or
cancellation, or partial or full release or discharge, and all other comparable
instruments, with respect to such Receivables or to the Financed Vehicles
securing such Receivables. The Servicer is hereby authorized to commence, in
its own name or in the name of the Issuer, a legal Proceeding to enforce a
Receivable or an Insurance Policy or to commence or participate in any other
legal Proceeding (including a bankruptcy Proceeding) relating to or involving a
Receivable, an Obligor or a Financed Vehicle. If the Servicer commences a legal
Proceeding to enforce a Receivable or an Insurance Policy, the Issuer will
thereupon be deemed to have automatically assigned such Receivable or its
rights under such Insurance Policy to the Servicer solely for purposes of
commencing or participating in any such Proceeding as a party or claimant, and
the Servicer is authorized and empowered by the Issuer to execute and deliver
in the Servicer’s name any notices, demands, claims, complaints, responses,
affidavits or other documents or instruments in connection with any such
Proceeding. If in any enforcement suit or legal Proceeding it is held that the
Servicer may not enforce a Receivable or an Insurance Policy on the ground that
it is not a real party in interest or a holder entitled to enforce the
Receivable or an Insurance Policy, the Issuer will, at the Servicer’s expense
and direction, take steps to enforce the Receivable or an Insurance Policy,
including bringing suit in its name or the name of the Indenture Trustee. The
Issuer will furnish the Servicer with any powers of attorney and other
documents reasonably necessary or appropriate to enable the Servicer to carry
out its servicing and administrative duties hereunder. The Servicer, at its
expense, will obtain on behalf of the Issuer all licenses, if any, reasonably
requested by the Seller to be held by the Issuer in connection with ownership
of the Receivables, and will make all filings and pay all fees as may be
required in connection therewith during the term hereof.

          (c)
The Servicer hereby agrees that upon its resignation and the appointment of a
successor Servicer hereunder, the Servicer will terminate its activities as
Servicer hereunder in accordance with Section 7.1, and, in any case, in
a manner which the Indenture Trustee reasonably determines will facilitate the
transition of the performance of such activities to such successor Servicer,
and the Servicer shall cooperate with and assist such successor Servicer.

          SECTION
3.2 Collection of Receivable Payments.

          (a)
The Servicer will make reasonable efforts to collect all payments called for
under the terms and provisions of the Receivables as and when the same become
due in accordance with its Customary Servicing Practices. Subject to Section
3.5, the Servicer may grant extensions, rebates, deferrals, amendments,
modifications or adjustments with respect to any Receivable in accordance with
its Customary Servicing Practices; provided,
however, that if the Servicer (i)
extends the date for final payment by the Obligor of any Receivable beyond the
last day of the Collection Period preceding the latest Final Scheduled Payment
Date of any Notes 

	
 

	
 

	
 

	
 

	
6

	
Sale and Servicing Agreement

(USAA 20[ ]-[ ]) 

issued under
the Indenture or (ii) reduces the Contract Rate or Outstanding Principal
Balance with respect to any Receivable other than as required by applicable law
(including, without limitation, by the Servicemembers Civil Relief Act of 2003,
as amended) or court order, it will promptly purchase such Receivable in the
manner provided in Section 3.6; provided, further, that the Servicer shall
not make any modification described in the preceding clause (i) or (ii) that
would trigger a repurchase pursuant to the above provisions or pursuant to Section
3.6, in either case for the sole purpose of enabling the Servicer to
purchase a Receivable from the Issuer and provided, further, that any change referred
to in this Section 3.2 shall only be made if either (a) the Obligor is
in default or, in the judgment of the Servicer, is reasonably expected to
default in the near future, or (b) the change is to the payment due date of a
Receivable, does not exceed 25 days and is made not more than twice during the
term of such Receivable. 

          The
Servicer may in its discretion waive any late payment charge or any other fees
that may be collected in the ordinary course of servicing a Receivable. Subject
to the provisos of the second sentence of the first paragraph of this Section 3.2,
the Servicer and its Affiliates may engage in any marketing practice or
promotion or any sale of any products, goods or services to Obligors with
respect to the Receivables for the account of the Servicer and/or its
Affiliates (but not the Issuer) so long as such practices, promotions or sales
are offered to obligors of comparable motor vehicle receivables serviced by the
Servicer for itself and others, whether or not such practices, promotions or
sales might indirectly result in a decrease in the aggregate amount of payments
made (but not any related contractual obligation) on the Receivables,
prepayments or faster or slower timing of the payment of the Receivables.
Notwithstanding anything in this Agreement to the contrary, the Servicer may
refinance any Receivable by (a) making a new loan to the Obligor and depositing
the full Outstanding Principal Balance of such refinanced Receivable into the
Collection Account or (b) by causing the Issuer to effect a substantive
modification to the Receivable when the request for such modification is the
result of a contact from or request of the related Obligor, in which case the
Receivable shall be deemed to be refinanced and the Servicer shall promptly
deposit the full Outstanding Principal Balance of such refinanced Receivable
into the Collection Account as soon as practical. The receivable created by
such refinancing shall not be property of the Issuer, in the case of (b) in the
prior sentence, upon the Servicer’s related payment to Issuer. The Servicer and
its Affiliates may also sell insurance or debt cancellation products, including
products which result in the repayment of some or all of the amount of a
Receivable owned by the Issuer upon the death or disability of the Obligor or
any casualty with respect to the Financed Vehicle.

          (b)
The Servicer shall not be required to make any advances of funds or guarantees
regarding collections, cash flows or distributions. Payments on the
Receivables, including payoffs, made in accordance with the related
documentation for such Receivables, shall be posted to the Servicer’s Obligor
records in accordance with the Servicer’s Customary Servicing Practices. Such
payments shall be allocated to principal, interest or other items in accordance
with the related documentation for such Receivables.

          (c)
Records documenting collection efforts shall be maintained during the period a
Receivable is delinquent in accordance with the Servicer’s Customary Servicing
Practices. Such records shall be maintained on at least a periodic basis that
is not less frequent than as prescribed by the Servicer’s Customary Servicing
Practices, and describe the entity’s activities in monitoring delinquent pool
assets including, for example, phone calls, letters and payment 

	
 

	
 

	
 

	
 

	
7

	
Sale and Servicing Agreement

(USAA 20[ ]-[ ]) 

rescheduling
plans in cases where delinquency is deemed temporary (e.g., illness or
unemployment) in accordance with the Servicer’s Customary Servicing Practices.

          SECTION
3.3 Realization Upon Receivables. On behalf of the Issuer, the Servicer
will use commercially reasonable efforts, consistent with its Customary
Servicing Practices, to repossess or otherwise convert the ownership of the
Financed Vehicle securing any Receivable as to which the Servicer has
determined eventual payment in full is unlikely unless it determines in its
sole discretion that repossession will not increase the Liquidation Proceeds by
an amount greater than the expense of such repossession or that the proceeds ultimately
recoverable with respect to such Receivable would be increased by forbearance.
The Servicer will follow such Customary Servicing Practices as it deems
necessary or advisable, which may include selling the Financed Vehicle at
public or private sale and which shall not, except as provided below, involve
the sale of all, or any portion of, a Receivable. The foregoing shall be
subject to the provision that, in any case in which the Financed Vehicle has
suffered damage, the Servicer shall not be required to expend funds in
connection with the repair or the repossession of such Financed Vehicle unless
it shall determine in its discretion that such repair and/or repossession will
increase the Liquidation Proceeds by an amount greater than the amount of such
expenses. The Servicer, in its sole discretion, may in accordance with its
Customary Servicing Practices purchase from the Issuer any Receivable’s
deficiency balance (i.e., the remaining balance of a Receivable after deduction
of all Liquidation Proceeds with respect to such Receivable) for a purchase
price equal to the fair value of the deficiency balance as determined by the
Servicer at the time of purchase by the Servicer, which purchase price shall
not be adjusted by the proceeds the Servicer ultimately realizes from its
disposition or collection efforts related to the deficiency amount. Net
proceeds of any such sale to the Servicer will constitute Liquidation Proceeds,
and the sole right of the Issuer and the Indenture Trustee with respect to any such
sold Receivables will be to receive such Liquidation Proceeds. Upon such sale,
the Servicer will mark its computer records indicating that any such receivable
sold is no longer a Receivable. The Servicer is authorized to take any and all
actions necessary or appropriate on behalf of the Issuer to evidence the sale
of the Financed Vehicle at public or private sale or the sale of the Receivable
to the Servicer pursuant to the provisions of this paragraph free from any Lien
or other interest of the Issuer or the Indenture Trustee.

          SECTION
3.4 Maintenance of Security Interests in Financed Vehicles. The Servicer
will, in accordance with its Customary Servicing Practices, take such steps as
are necessary to maintain perfection of the security interest created by each
Receivable in the related Financed Vehicle. The provisions set forth in this
Section are the sole requirements under the Transaction Documents with respect
to the maintenance of collateral or security on the Receivables. It is
understood that the Financed Vehicles are the collateral and security for the
Receivables, but that the Certificate of Title with respect to a Financed
Vehicle does not constitute collateral and merely evidences such security
interest. The Issuer hereby authorizes the Servicer to take such steps as are
necessary to re-perfect such security interest on behalf of the Issuer and the
Indenture Trustee in the event of the relocation of a Financed Vehicle or for
any other reason.

          SECTION
3.5 Covenants of Servicer. Unless required by law or court order, the
Servicer will not release the Financed Vehicle securing each such Receivable
from the security interest granted by such Receivable in whole or in part
except (a) in the event of payment in full by or on behalf of the Obligor
thereunder or payment in full less a deficiency which the Servicer 

	
 

	
 

	
 

	
 

	
8

	
Sale and Servicing Agreement

(USAA 20[ ]-[ ]) 

would not
attempt to collect in accordance with its Customary Servicing Practices, (b) in
connection with repossession or (c) except as may be required by an insurer in
order to receive proceeds from any Insurance Policy covering such Financed
Vehicle.

          SECTION
3.6 Purchase of Receivables Upon Breach. Upon discovery by any party
hereto of a breach of any of the covenants set forth in Section 3.2, 3.3,
3.4 or 3.5 which materially and adversely affects the interests
of the Issuer or the Noteholders, the party discovering such breach shall give
prompt written notice thereof to the other parties hereto; provided, that delivery of the Servicer’s
Certificate, which identifies the Receivables that are being or have been
repurchased, shall be deemed to constitute prompt notice by the Servicer and
the Issuer of such breach with respect to such repurchased Receivable; provided,
further,
that the failure to give such notice shall not affect any obligation of the
Servicer hereunder. If the Servicer does not correct or cure such breach prior
to the end of the Collection Period which includes the 60th day (or, if the
Servicer elects, an earlier date) after the date that the Servicer became aware
or was notified of such breach, then the Servicer shall purchase any Receivable
materially and adversely affected by such breach from the Issuer on the Payment
Date following the end of such Collection Period. Any such breach or failure
will be deemed to not have a material and adverse effect if such breach or
failure does not affect the ability of the Issuer to receive and retain timely
payment in full on such Receivable. Any such purchase by the Servicer shall be
at a price equal to the Repurchase Price. In consideration for such repurchase,
the Servicer shall make (or shall cause to be made) a payment to the Issuer
equal to the Repurchase Price by depositing such amount into the Collection
Account prior to [     ] [a.m.], New York City time on
such Payment Date. Upon payment of such Repurchase Price by the Servicer, the
Issuer and the Indenture Trustee shall release and shall execute and deliver
such instruments of release, transfer or assignment, in each case without
recourse or representation, as shall be reasonably necessary to vest in the
Servicer or its designee any Receivable repurchased pursuant hereto. It is
understood and agreed that the obligation of the Servicer to purchase any
Receivable as described above shall constitute the sole remedy respecting such
breach available to the Issuer[, the Swap Counterparty] and the Indenture
Trustee.

          SECTION
3.7 Servicing Fee. On each Payment Date, the Indenture Trustee on behalf
of the Issuer shall pay to the Servicer the Servicing Fee in accordance with Section
4.4 for the immediately preceding Collection Period as compensation for its
services. In addition, the Servicer will be entitled to retain all Supplemental
Servicing Fees. The Servicer also will be entitled to receive investment earnings
(net of investment losses and expenses) on funds deposited in the Collection
Account during each Collection Period.

          SECTION
3.8 Servicer’s Certificate. On or before the Determination Date
preceding each Payment Date, the Servicer shall deliver to the Indenture
Trustee, and each Paying Agent, with a copy to the Rating Agencies [and the
Swap Counterparty], a Servicer’s Certificate containing all information
necessary to make the payments, transfers and distributions pursuant to Sections
4.3 and 4.4 of this Agreement and Section 8.2(c) of the
Indenture on such Payment Date. At the sole option of the Servicer, each
Servicer’s Certificate may be delivered in electronic or hard copy format.

          SECTION
3.9 Annual Officer’s Certificate; Notice of Servicer Replacement Event.
(a) So long as the Seller is filing any reports with respect to the Issuer
under the Exchange Act,

	
 

	
 

	
 

	
 

	
9

	
Sale and Servicing Agreement

(USAA 20[ ]-[ ]) 

the Servicer will
deliver to the Rating Agencies, the Issuer and the Indenture Trustee, on or
before March 30 of each calendar year, beginning on March 30,
20[  ], an Officer’s Certificate (with appropriate insertions)
providing such information as is required under Item 1123 of Regulation AB.

          (b)
The Servicer will deliver to the Issuer, the Indenture Trustee and each Rating
Agency promptly after having obtained knowledge thereof written notice in an
Officer’s Certificate of any event which with the giving of notice or lapse of
time, or both, would become a Servicer Replacement Event. Except to the extent
set forth in this Section 3.9(b) and Sections 7.2 and 9.22
of this Agreement and Section 3.12 of the Indenture, the Transaction
Documents do not require any policies or procedures to monitor any performance
or other triggers and events of default.

          (c)
So long as the Seller is filing any reports with respect to the Issuer under
the Exchange Act, the Servicer will deliver to the Issuer, on or before
March 30 of each year, beginning on March 30, 20[  ], a
report regarding the Servicer’s assessment of compliance with the Servicing
Criteria during the immediately preceding calendar year (or since the Closing
Date in the case of the first such report), including disclosure of any
material instance of non-compliance identified by the Servicer, as required
under paragraph (b) of Rule 13a-18 and Rule 15d-18 of the Exchange Act and Item
1122 of Regulation AB.

          SECTION
3.10 Annual Registered Public Accounting Firm Attestation Report. So
long as the Seller is filing any reports with respect to the Issuer under the
Exchange Act, on or before the 90th day following the end of each fiscal year,
beginning with the fiscal year ending December 31, 20[  ], the
Servicer shall cause a firm of independent registered public accountants (who
may also render other services to the Servicer, the Seller or their respective
Affiliates) to furnish to the Indenture Trustee, the Servicer, the Seller and
each Rating Agency each attestation report on assessments of compliance with
the Servicing Criteria with respect to the Servicer or any Affiliate thereof
during the related fiscal year (or since the Closing Date in the case of the
first such report) delivered by such accountants pursuant to paragraph (c) of
Rule 13a-18 or Rule 15d-18 of the Exchange Act and Item 1122 of Regulation AB. The certification required by this paragraph
may be replaced by any similar certification using other procedures or
attestation standards which are now or in the future in use by servicers of
comparable assets, or which otherwise comply with any rule, regulation, “no
action” letter or similar guidance promulgated by the Commission.

          SECTION
3.11 Servicer Expenses. The Servicer shall pay all expenses (other than
expenses described in the definition of Liquidation Proceeds) incurred by it in
connection with its activities hereunder, independent accountants, taxes
imposed on the Servicer and expenses incurred in connection with distributions
and reports to the Noteholders and the Certificateholder. The Servicer shall
also pay all fees, expenses, and indemnities of the Indenture Trustee (as
described in, and pursuant to the limitations set forth in Section 6.7
of the Indenture) and the Owner Trustee (as described in, and pursuant to the
limitations set forth in, Sections 8.1 and 8.2 of the Trust
Agreement).

          SECTION
3.12 Exchange Act Filings. The Issuer hereby authorizes the Servicer and
the Seller, or either of them, to prepare, sign, certify and file any and all
reports, statements and

	
 

	
 

	
 

	
 

	
10

	
Sale and Servicing Agreement

(USAA 20[ ]-[ ]) 

information
with respect to the Issuer and/or the Notes required to be filed pursuant to
the Exchange Act, and the rules thereunder.

ARTICLE IV

DISTRIBUTIONS; ACCOUNTS;

STATEMENTS TO THE CERTIFICATEHOLDER

AND THE NOTEHOLDERS

          SECTION
4.1 Establishment of Accounts. (a) The Servicer shall cause to be
established:

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 For the
 benefit of the Noteholders [and the Swap Counterparty], in the name of the
 Indenture Trustee, an Eligible Account (the “Collection Account”),
 bearing a designation clearly indicating that the funds deposited therein are
 held for the benefit of the Noteholders [and the Swap Counterparty], which
 Eligible Account shall be established by and maintained with the Indenture
 Trustee or its designee. No checks shall be issued, printed or honored with
 respect to the Collection Account.

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 For the
 benefit of the Noteholders [and the Swap Counterparty], in the name of the
 Indenture Trustee, an Eligible Account (the “Principal Distribution
 Account”), which may be a subaccount of the Collection Account,
 bearing a designation clearly indicating that the funds deposited therein are
 held for the benefit of the Noteholders [and the Swap Counterparty], which
 Eligible Account shall be established by and maintained with the Indenture
 Trustee or its designee. No checks shall be issued, printed or honored with
 respect to the Principal Distribution Account.

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 For the
 benefit of the Noteholders [and the Swap Counterparty], in the name of the
 Indenture Trustee, an Eligible Account (the “Reserve Account”),
 bearing a designation clearly indicating that the funds deposited therein are
 held for the benefit of the Noteholders [and the Swap Counterparty], which
 Eligible Account shall be established by and maintained with the Indenture
 Trustee or its designee. No checks shall be issued, printed or honored with
 respect to the Reserve Account.

 
	
  

 	
  

 	
  

 
	
  

 	
 (iv)

 	
 For the
 benefit of the Noteholders, in the name of the Indenture Trustee, an Eligible
 Account (the “Yield Supplement Account”), bearing a designation
 clearly indicating that funds deposited therein are held for the benefit of
 the Noteholders, which Eligible Account shall be established and maintained
 with the Indenture Trustee or its designee. No checks shall be issued,
 printed or honored with respect to the Yield Supplement Account.

 

	
  

 	
  

 	
  

 
	
  

 	
 11

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

          (b)
Funds on deposit in the Collection Account, the Reserve Account and the Yield
Supplement Account (collectively, with the Principal Distribution Account [and
the Swap Termination Payment Account (to the extent such account is established
under Section 4.8(b))], the “Trust Accounts”) shall be invested by the
Indenture Trustee in Permitted Investments selected in writing by the Servicer
and of which the Servicer provides notification (pursuant to standing
instructions or otherwise); provided, that it is understood and agreed that
neither the Servicer, the Indenture Trustee nor the Issuer shall be liable for
any loss arising from such investment in Permitted Investments. If
[                    ]
is the Indenture Trustee, in the absence of such written investment direction,
all funds shall be invested in one or more Permitted Investments in accordance
with the standing instructions most recently given by the Servicer or should
that for any reason not be possible such funds shall be retained uninvested.
All such Permitted Investments shall be held by or on behalf of the Indenture
Trustee as secured party for the benefit of the Noteholders [and the Swap Counterparty];
provided, that on each Payment
Date all interest and other investment income (net of losses and investment
expenses) on funds on deposit in the Collection Account shall be distributed to
the Servicer as additional servicing compensation and shall not be available to
pay the distributions provided for in Section 4.4. All investments of
funds on deposit in the Trust Accounts shall mature so that such funds will be
available by [     ] [a.m.] New York City time on the
next Payment Date. No Permitted Investment shall be sold or otherwise disposed
of prior to its scheduled maturity unless a default occurs with respect to such
Permitted Investment and the Servicer directs the Indenture Trustee in writing
to dispose of such Permitted Investment. For the avoidance of doubt, with
respect to each Payment Date, any interest and other income earned on funds in
deposit in the Collection Account from the Business Day prior to such Payment
Date through such Payment Date shall be paid to the Servicer.

          (c)
The Indenture Trustee shall possess all right, title and interest in all funds
on deposit from time to time in the Trust Accounts and in all proceeds thereof
and all such funds, investments and proceeds shall be part of the Trust Estate.
Except as otherwise provided herein, the Trust Accounts shall be under the sole
dominion and control of the Indenture Trustee for the benefit of the
Noteholders [and the Swap Counterparty]. If, at any time, any Trust Account
ceases to be an Eligible Account, the Servicer shall promptly notify the
Indenture Trustee in writing (unless such Trust Account is an account with the
Indenture Trustee) and within 10 Business Days (or any longer period if the
Rating Agency Condition is satisfied with respect to such longer period) after
becoming aware of the fact, establish a new Trust Account as an Eligible
Account and shall direct the Indenture Trustee to transfer any cash and/or any
investments to such new Trust Account. 

          (d)
With respect to the Trust Account Property, the parties hereto agree that:

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 any Trust
 Account Property that consists of uninvested funds shall be held solely in
 Eligible Accounts and, except as otherwise provided herein, each such
 Eligible Account shall be subject to the exclusive custody and control of the
 Indenture Trustee, and, except as otherwise provided in the Transaction
 Documents, the Indenture Trustee or its designee shall have sole signature
 authority with respect thereto;

 

	
  

 	
  

 	
  

 
	
  

 	
 12

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 any Trust
 Account Property that constitutes Physical Property shall be delivered to the
 Indenture Trustee or its designee, in accordance with paragraph (a) of the
 definition of “Delivery” and shall be held, pending maturity or disposition,
 solely by the Indenture Trustee or any such designee;

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 any Trust
 Account Property that is an “uncertificated security” under Article 8 of the
 UCC and that is not governed by clause (iv) below shall be delivered to the
 Indenture Trustee or its designee in accordance with paragraph (c) of the
 definition of “Delivery” and shall be maintained by the Indenture Trustee or
 such designee, pending maturity or disposition, through continued
 registration of the Indenture Trustee’s (or its designee’s) ownership of such
 security on the books of the issuer thereof; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (iv)

 	
 any Trust
 Account Property that is an uncertificated security that is a “book-entry
 security” (as such term is defined in Federal Reserve Bank Operating Circular
 No. 7) held in a securities account at a Federal Reserve Bank and eligible
 for transfer through the Fedwire® Securities Service operated by
 the Federal Reserve System pursuant to Federal book-entry regulations shall
 be delivered in accordance with paragraph (b) of the definition of “Delivery”
 and shall be maintained by the Indenture Trustee or its designee or a
 securities intermediary (as such term is defined in Section 8-102(a)(14) of
 the UCC) acting solely for the Indenture Trustee or such designee, pending
 maturity or disposition, through continued book-entry registration of such
 Trust Account Property as described in such paragraph.

 

          (e)
Except for the Collection Account, the Reserve Account, the Yield Supplement
Account and the Principal Distribution Account, there are no accounts required
to be maintained under the Transaction Documents.

          SECTION
4.2 Remittances. The Servicer shall deposit an amount equal to all
Collections into the Collection Account within two Business Days after
identification; provided, however, that if the Monthly Remittance
Condition is satisfied, then the Servicer shall not be required to deposit into
the Collection Account an amount equal to the Collections received during any
Collection Period until [     ] [a.m.], New York City
time, on the related Payment Date, (or the Business Day preceding such Payment
Date if the Collection Account is not maintained at the Indenture Trustee). The
“Monthly Remittance Condition” shall be deemed to be satisfied if (i)
the Bank or one of its Affiliates is the Servicer, (ii) no Servicer Replacement
Event has occurred and is continuing and (iii) USAA Capital Corporation has a
short-term debt rating of at least “P1” from Moody’s and “A1” from Standard
& Poor’s. Notwithstanding the foregoing, the Servicer may remit Collections
to the Collection Account on any other alternate remittance schedule (but not
later than the related Payment Date) if the Rating Agency Condition is
satisfied with respect to such alternate remittance schedule. Pending deposit
into the Collection Account, Collections may be commingled and used by the
Servicer at its own risk and are not required to be segregated from its own
funds. The Indenture Trustee shall not be deemed

	
  

 	
  

 	
  

 
	
  

 	
 13

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

to have
knowledge of any event or circumstance included in the definition of Monthly
Remittance Condition that would require early remittance of such funds unless a
Responsible Officer of the Indenture Trustee has actual knowledge thereof.

          SECTION
4.3 Additional Deposits and Payments[; Servicer Advances]. (a) On each
Payment Date, the Servicer and the Seller will deposit into the Collection
Account the aggregate Repurchase Price with respect to Repurchased Receivables
purchased by the Servicer pursuant to Section 3.6 or the Seller pursuant
to Section 2.3, respectively, on such Payment Date and the Servicer will
deposit (or will cause the applicable purchaser to deposit) into the Collection
Account all amounts, if any, to be paid under Section
8.1 in connection with the Optional Purchase.
All such deposits with respect to a Payment Date will be made, in immediately
available funds by [     ] [a.m.], New York City time,
on such Payment Date related to such Collection Period.

          (b)
The Servicer will calculate the Reserve Account Excess Amount for each Payment
Date and instruct the Indenture Trustee to, on each Payment Date, withdraw from
the Reserve Account the Reserve Account Excess Amount, if any, for such Payment
Date and deposit such amount in the Collection Account.

          (c)
[On each Payment Date, the Servicer shall deposit into the Collection Account
prior to [     ] [a.m.], New York City time, an
advance in an amount equal to the lesser of
(a) any shortfall in the amounts available to make the payments in clauses first through seventh of Section 4.4(a)
and (b) the aggregate scheduled monthly payments due on Receivables but not
received during and prior to the related Collection Period (an “Advance”);
provided, however, that the Servicer will not be
obligated to make an Advance if the Servicer reasonably determines in its sole
discretion that such Advance is not likely to be repaid from future cash flows
from the Receivables. No Advances will be made with respect to Defaulted
Receivables.]

          (d)
The Servicer will calculate the Reserve Account Excess Amount for each Payment
Date and instruct the Indenture Trustee to, on the Payment Date relating to
each Collection Period, withdraw from the Reserve Account the Reserve Account
Draw Amount and deposit such amount in the Collection Account.

          (e)
The Servicer will calculate the Yield Supplement Account Draw Amount for each
Payment Date and instruct the Indenture Trustee to, on each Payment Date, make
a withdrawal from the Yield Supplement Account in an amount equal to the Yield
Supplement Account Draw Amount for such Payment Date and deposit such amount
into the Collection Account.

          (f)
On the Closing Date the Seller will deposit (or cause to be deposited) into (i)
the Reserve Account an amount equal to the Initial Reserve Account Deposit
Amount and (ii) the Yield Supplement Account an amount equal to the Initial
Yield Supplement Account Deposit Amount.

          (g)
[The Indenture Trustee will promptly, on the day of receipt, deposit into the
Collection Account all Net Swap Receipts received by it under the Interest Rate
Swap Agreement in immediately available funds.]

          SECTION
4.4 Distributions.

	
  

 	
  

 	
  

 
	
  

 	
 14

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

          (a)
Subject to Article V of the Indenture, on each Payment Date, the
Indenture Trustee (solely based on information contained in, and as directed
by, the Servicer’s Certificate delivered on or before the related Determination
Date pursuant to Section 3.8) shall make the following deposits and
distributions, to the extent of Available Funds, [Advances made on such Payment
Date pursuant to Section 4.3(c),] the Reserve Account Draw Amount and
the Yield Supplement Account Draw Amount, on deposit in the Collection Account
for such Payment Date, in the following order of priority:

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 [first,
 to the Servicer (or any predecessor Servicer, if applicable) for
 reimbursement of all outstanding Advances;]

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 second, to the Servicer, the Servicing Fee
 and all unpaid Servicing Fees with respect to prior Collection Periods;

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 [third,
 to the Swap Counterparty, the Net Swap Payment, if any, for such Payment
 Date;]

 
	
  

 	
  

 	
  

 
	
  

 	
 (iv)

 	
 fourth,
 pro rata [(A) to the Swap Counterparty, any Senior Swap Termination Payments
 for such Payment Date, and (B)] to the Class A Noteholders, the
 Accrued Class A Note Interest for the related Interest Period; provided, that
 if there are not sufficient funds available to pay the entire amount of the
 Accrued Class A Note Interest, the amounts available will be applied to the
 payment of such interest on the Class A Notes on a pro rata basis;

 
	
  

 	
  

 	
  

 
	
  

 	
 (v)

 	
 fifth, to the Principal Distribution Account
 for distribution to the Noteholders pursuant to Section 8.2(c) of the
 Indenture, the First Allocation of Principal, if any;

 
	
  

 	
  

 	
  

 
	
  

 	
 (vi)

 	
 sixth, to the
 Class B Noteholders, the Accrued Class B Note Interest for the related
 Interest Period;

 
	
  

 	
  

 	
  

 
	
  

 	
 (vii)

 	
 seventh, to the
 Principal Distribution Account for distribution to the Noteholders in
 accordance with Section 8.2(c) of the Indenture, the Second Allocation
 of Principal, if any;

 
	
  

 	
  

 	
  

 
	
  

 	
 (viii)

 	
 eighth, to the Reserve
 Account, any additional amounts required to increase the amount in the
 Reserve Account up to the Specified Reserve Account Balance;

 
	
  

 	
  

 	
  

 
	
  

 	
 (ix)

 	
 [ninth, to
 the Swap Counterparty, any Subordinated Swap Termination Payments for such
 Payment Date;]

 
	
  

 	
  

 	
  

 
	
  

 	
 (x)

 	
 tenth, to the Owner Trustee and the
 Indenture Trustee, fees, expenses and indemnification amounts due and owing
 under this Agreement, the Trust Agreement and the Indenture, as applicable,
 which have not been previously paid; 

 

 

	
  

 	
  

 	
  

 
	
  

 	
 15

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

	
  

 	
  

 	
  

 
	
  

 	
 (xi)

 	
 eleventh, to the
 Servicer, legal expenses and costs incurred pursuant to Section 6.4(b);
 and

 
	
  

 	
  

 	
  

 
	
  

 	
 (xii)

 	
 twelfth, to or at
 the direction of the Certificateholder, any funds remaining.

 

Notwithstanding
any other provision of this Section 4.4, following the occurrence
and during the continuation of an Event of Default which has resulted in an
acceleration of the Notes, the Indenture Trustee shall apply all amounts on
deposit in the Collection Account pursuant to Section 5.4(b) of the
Indenture.

          (b)
After the payment in full of the Notes[, all amounts payable to the Swap
Counterparty] and all other amounts payable under Section 4.4(a),
all Collections shall be paid to or in accordance with the instructions
provided from time to time by the Certificateholder.

          SECTION
4.5 Net Deposits. If the Monthly Remittance Condition is satisfied, the
Servicer shall be permitted to deposit into the Collection Account only the net
amount distributable to Persons other than the Servicer and its Affiliates on
the Payment Date. The Servicer shall, however, account as if all of the
deposits and distributions described herein were made individually.

          SECTION
4.6 Statements to Certificateholder and Noteholders. On or before each
Determination Date, the Servicer shall deliver to the Indenture Trustee, each
Paying Agent and the Rating Agencies, and the Indenture Trustee shall make
available on its website, as described below to the Issuer [, the Swap
Counterparty] and to each Noteholder of record as of the most recent Record
Date, a statement setting forth for the Collection Period and Payment Date
relating to such Determination Date the following information (to the extent
applicable):

          (a)
the aggregate amount being paid on such Payment Date in respect of interest on
and principal of each Class of Notes;

          (b)
the Class A-1 Note Balance, the Class A-2 Note Balance, the Class A-3 Note
Balance, the Class A-4 Note Balance and the Class B Note Balance in each case
after giving effect to payments on such Payment Date;

          (c)
(i) the amount on deposit in the Reserve Account and the Specified Reserve
Account Balance, each as of the beginning and end of the related Collection
Period, (ii) the amount deposited in the Reserve Account in respect of such
Payment Date, if any, (iii) the Reserve Account Draw Amount and the Reserve
Account Excess Amount, if any, to be withdrawn from the Reserve Account on such
Payment Date, (iv) the balance on deposit in the Reserve Account on such
Payment Date after giving effect to withdrawals therefrom and deposits thereto
in respect of such Payment Date and (v) the change in such balance from the
immediately preceding Payment Date;

          (d)
(i) the amount on deposit in the Yield Supplement Account and the Yield
Supplement Account Amount, each as of the beginning and end of the related
Collection Period, (ii) the Yield Supplement Account Draw Amount to be
withdrawn from the Yield Supplement Account on such Payment Date, (iii) the
balance on deposit in the Yield Supplement Account on

	
  

 	
  

 	
  

 
	
  

 	
 16

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

such Payment
Date after giving effect to withdrawals therefrom in respect of such Payment
Date and (iv) the change in such balance from the immediately preceding Payment
Date;

          (e)
the First Allocation of Principal and the Second Allocation of Principal for
such Payment Date;

          (f)
the Net Pool Balance and the Principal Factor as of the close of business on
the last day of the preceding Collection Period;

          (g)
the amount of the Servicing Fee to be paid to the Servicer with respect to the
related Collection Period and the amount of any unpaid Servicing Fees;

          (h)
the amount of the Class A Noteholders’ Interest Carryover Shortfall and the
Class B Noteholders’ Interest Carryover Shortfall, if any, on such Payment Date
and the change in such amounts from the preceding Payment Date; 

          (i)
the aggregate Repurchase Price with respect to Repurchased Receivables with
respect to the related Collection Period;

          (j)
[the amount of Advances, if any, on such Payment Date;] 

          (k)
the amount of Collections for the related Collection Period;

          (l)
[the Net Swap Receipts and Net Swap Payment, if any;]

          (m)
[the Senior Swap Termination Payment and Subordinated Swap Termination Payment,
if any;]

          (n)
[the Swap Replacement Proceeds, if any; and]

          (o)
[the Swap Termination Payment, if any.]

          No
disbursements shall be made directly by the Servicer to a Noteholder, and the
Servicer shall not be required to maintain any investor record relating to the
posting of disbursements or otherwise.

          The
Indenture Trustee will make available via the Indenture Trustee’s internet
website all reports or notices required to be provided by the Indenture Trustee
under this Section 4.6. Any information that is disseminated in
accordance with the provisions of this Section 4.6 shall not be required
to be disseminated in any other form or manner; provided, however,
any such information that must be delivered to the Rating Agencies under this Section
4.6 shall be sent by the Servicer by electronic mail to each Rating Agency.
The Indenture Trustee will make no representations or warranties as to the
accuracy or completeness of such documents and will assume no responsibility
therefor.

          The
Indenture Trustee’s internet website shall be initially located at
[          ] or at such other
address as shall be specified by the Indenture Trustee from time to time in
writing to the Noteholders, the Servicer, the Issuer or any Paying Agent. The
Indenture Trustee will forward a

	
  

 	
  

 	
  

 
	
  

 	
 17

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

hard copy of the reports or notices required to be provided by the
Indenture Trustee under this Section 4.6 to each Noteholder promptly
after it becomes aware that the reports or notices are not accessible on its
internet website. In connection with providing access to the Indenture
Trustee’s internet website, the Indenture Trustee may require registration and
the acceptance of a disclaimer. The Indenture Trustee shall not be liable for
the dissemination of information in accordance with this Agreement.

          SECTION 4.7
No Duty to Confirm. The Indenture Trustee shall have no duty or
obligation to verify or confirm the accuracy of any of the information or
numbers set forth in the Servicer’s Certificate delivered by the Servicer to
the Indenture Trustee, and the Indenture Trustee shall be fully protected in
relying upon such Servicer’s Certificate. 

          [SECTION
4.8 Interest Rate Swap Agreement.] 

          (a) [The
Issuer shall enter into the Initial Interest Rate Swap Agreement with the
Initial Swap Counterparty. Subject to the requirements of this Section 4.8,
the Issuer may from time to time enter into one or more Replacement Interest
Rate Swap Agreements in the event that the Initial Interest Rate Swap Agreement
is terminated due to any “Termination Event” or “Event of Default” (each as
defined in the Initial Interest Rate Swap Agreement) prior to its scheduled
expiration and in accordance with the terms of such Interest Rate Swap Agreement.
Other than any Replacement Interest Rate Swap Agreement entered into pursuant
to this Section 4.8(a), the Issuer may not enter into any additional
interest rate swap agreements.] 

          (b) [In the
event of any early termination of any Interest Rate Swap Agreement, (i) upon
written direction and notification of such early termination, the Indenture
Trustee shall establish the Swap Termination Payment Account over which the
Indenture Trustee shall have exclusive control and the sole right of withdrawal,
and in which no Person other than the Indenture Trustee, the Swap Counterparty
and the Noteholders shall have any legal or beneficial interest, (ii) any Swap
Termination Payments received from the Swap Counterparty will be remitted to
the Swap Termination Payment Account and (iii) any Swap Replacement Proceeds
received from a Replacement Swap Counterparty will be remitted directly to the
Swap Counterparty; provided, that
any such remittance to the Swap Counterparty shall not exceed the amounts, if
any, owed to the Swap Counterparty under the Interest Rate Swap Agreement; provided, further
that the Swap Counterparty shall only receive Swap Replacement Proceeds if all
Swap Termination Payments due from the Swap Counterparty to the Issuer have
been paid in full and if such amounts have not been paid in full then the
amount of Swap Replacement Proceeds necessary to make up any deficiency shall
be remitted to the Swap Termination Payment Account.] 

          (c) [The
Issuer shall promptly, following the early termination of any Initial Interest
Rate Swap Agreement due to an “Event of Default” or “Termination Event” (each
as defined in the Initial Interest Rate Swap Agreement) and in accordance with
the terms of such Interest Rate Swap Agreement, enter into a Replacement
Interest Rate Swap Agreement to the extent possible and practicable through
application of funds available in the Swap Termination Payment Account unless
entering into such Replacement Interest Rate Swap Agreement will cause the
Rating Agency Condition not to be satisfied.] 

	
  

 	
  

 	
  

 
	
  

 	
 18

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

          (d) [To the
extent that (i) the funds available in the Swap Termination Payment Account
exceed the costs of entering into a Replacement Interest Rate Swap Agreement or
(ii) the Issuer determines not to replace the Initial Interest Rate Swap
Agreement and the Rating Agency Condition is met with respect to such
determination, the amounts in the Swap Termination Payment Account (other than
funds used to pay the costs of entering into a Replacement Interest Rate Swap
Agreement, if applicable) shall be included in Available Funds and allocated in
accordance with the order of priority specified in Section 4.4(a) on the
following Payment Date. In any other situation, amounts on deposit in the Swap
Termination Payment Account at any time shall be invested pursuant to Section
4.1(b) and on each Payment Date after the creation of a Swap Termination
Payment Account, the funds therein shall be used to cover any shortfalls in the
amounts payable under clauses first through seventh under Section
4.4(a), provided,
that in no event will the amount withdrawn from the Swap Termination Payment
Account on such Payment Date exceed the amount of Net Swap Receipts that would
have been required to be paid on such Payment Date under the terminated
Interest Rate Swap Transaction had there been no termination of such
transaction. Any amounts remaining in the Swap Termination Payment Account
after payment in full of the Class A-4 Notes shall be included in Available
Funds and allocated in accordance with the order of priority specified in Section
4.4(a) on the following Payment Date.]

          (e) [If the
Swap Counterparty is required to post collateral under the terms of the
Interest Rate Swap Agreement, upon written direction and notification of such
requirement, the Indenture Trustee shall establish the Swap Collateral Account
(the “Swap Collateral Account”) over which the Indenture Trustee shall
have exclusive control and the sole right of withdrawal, and in which no Person
other than the Indenture Trustee, the Swap Counterparty and the Noteholders
shall have any legal or beneficial interest. The Indenture Trustee shall
deposit all collateral received from the Swap Counterparty under the Interest
Rate Swap Agreement into the Swap Collateral Account. Any and all funds at any
time on deposit in, or otherwise to the credit of, the Swap Collateral Account
shall be held in trust by the Indenture Trustee for the benefit of the Swap
Counterparty and the Noteholders. The only permitted withdrawal from or
application of funds on deposit in, or otherwise to the credit of, the Swap
Collateral Account shall be (i) for application to obligations of the Swap
Counterparty to the Issuer under the Interest Rate Swap Agreement in accordance
with the terms of the Interest Rate Swap Agreement or (ii) to return collateral
to the Swap Counterparty when and as required by the Interest Rate Swap
Agreement.] 

          (f) [If at
any time the Interest Rate Swap Agreement becomes subject to early termination
due to the occurrence of an “Event of Default” or “Termination Event” (as
defined in the Interest Rate Swap Agreement), the Issuer and the Indenture
Trustee shall use reasonable efforts (following the expiration of any
applicable grace period) to enforce the rights of the Issuer thereunder as may
be permitted by the terms of the Interest Rate Swap Agreement and consistent
with the terms hereof. To the extent not fully paid from Swap Replacement
Proceeds, any Swap Termination Payment owed by the Issuer to the Swap
Counterparty under the Interest Rate Swap Agreement shall be payable to the
Swap Counterparty in installments made on each following Payment Date until
paid in full in accordance with the order of priority specified in Section
4.4(a). To the extent that the Swap Replacement Proceeds exceed any such
Swap Termination Payments (or if there are no Swap Termination Payments due to
the Swap Counterparty), the Swap Replacement Proceeds in excess of such Swap Termination
Payments,

	
  

 	
  

 	
  

 
	
  

 	
 19

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

if any, shall be included in Available Funds and allocated and applied
in accordance with the order of priority specified in Section 4.4(a) on
the following Payment Date.] 

ARTICLE V

THE SELLER

          SECTION
5.1 Representations and Warranties of Seller. The Seller makes the
following representations and warranties as of the Closing Date on which the
Issuer will be deemed to have relied in acquiring the Transferred Assets. The
representations and warranties speak as of the execution and delivery of this
Agreement and will survive the conveyance of the Transferred Assets to the
Issuer pursuant to this Agreement and the pledge thereof by the Issuer to the
Indenture Trustee pursuant to the Indenture: 

          (a)
Existence and Power. The Seller is a
limited liability company validly existing and in good standing under the laws
of the State of Delaware and has, in all material respects, all power and
authority required to carry on its business as it is now conducted. The Seller
has obtained all necessary licenses and approvals in each jurisdiction where
the failure to do so would materially and adversely affect the ability of the
Seller to perform its obligations under the Transaction Documents or affect the
enforceability or collectibility of the Receivables or any other part of the
Transferred Assets.

          (b)
Authorization and No Contravention. The
execution, delivery and performance by the Seller of each Transaction Document
to which it is a party (i) have been duly authorized by all necessary limited
liability company action on the part of the Seller and (ii) do not contravene
or constitute a default under (A) any applicable law, rule or regulation, (B)
its organizational documents or (C) any material agreement, contract, order or
other instrument to which it is a party or its property is subject (other than
violations which do not affect the legality, validity or enforceability of any
of such agreements and which, individually or in the aggregate, would not
materially and adversely affect the transactions contemplated by, or the
Seller’s ability to perform its obligations under, the Transaction Documents). 

          (c)
No Consent Required. No approval or
authorization by, or filing with, any Governmental Authority is required in
connection with the execution, delivery and performance by the Seller of any
Transaction Document other than (i) UCC filings, (ii) approvals and
authorizations that have previously been obtained and filings that have
previously been made and (iii) approvals, authorizations or filings which, if
not obtained or made, would not have a material adverse effect on the
enforceability or collectibility of the Receivables or any other part of the
Transferred Assets or would not materially and adversely affect the ability of
the Seller to perform its obligations under the Transaction Documents.

          (d)
Binding Effect. Each Transaction
Document to which the Seller is a party constitutes the legal, valid and
binding obligation of the Seller enforceable against the Seller in accordance
with its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, receivership,
conservatorship or other similar laws affecting creditors’ rights generally
and, if applicable, the rights of creditors of limited liability companies from
time to time in effect or by general principles of equity.

	
  

 	
  

 	
  

 
	
  

 	
 20

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

          (e)
Lien Filings. The Seller is not aware of any material judgment, ERISA or
tax lien filings against the Seller.

          (f)
No Proceedings. There are no actions, suits or Proceedings pending or,
to the knowledge of the Seller, threatened against the Seller before or by any
Governmental Authority that (i) assert the invalidity or unenforceability of
this Agreement or any of the other Transaction Documents, (ii) seek to prevent
the issuance of the Notes or the consummation of any of the transactions
contemplated by this Agreement or any of the other Transaction Documents, (iii)
seek any determination or ruling that would materially and adversely affect the
performance by the Seller of its obligations under this Agreement or any of the
other Transaction Documents or the collectibility or enforceability of the
Receivables, or (iv) relate to the Seller that would materially and adversely
affect the federal or Applicable Tax State income, excise, franchise or similar
tax attributes of the Notes.

          SECTION
5.2 Liability of Seller; Indemnities. The Seller shall be liable in
accordance herewith only to the extent of the obligations specifically
undertaken by the Seller under this Agreement, and hereby agrees to the
following: 

          (a)
The Seller shall indemnify, defend, and hold harmless the Issuer, the Owner
Trustee and the Indenture Trustee and their respective directors, officers,
employees and agents from and against any loss, liability or expense incurred
by reason of (i) the Seller’s willful misfeasance, bad faith, or negligence in
the performance of its duties under this Agreement, or by reason of reckless
disregard of its obligations and duties under this Agreement and (ii) the
Seller’s violation of federal or State securities laws in connection with the
registration or the sale of the Notes.

          (b)
The Seller will pay any and all taxes levied or assessed upon the Issuer or
upon all or any part of the Trust Estate.

          (c)
Indemnification under this Section 5.2 will survive the resignation or
removal of the Owner Trustee or the Indenture Trustee and the termination of
this Agreement and will include, without limitation, reasonable fees and
expenses of counsel and expenses of litigation. If the Seller has made any
indemnity payments pursuant to this Section 5.2 and the Person to or on
behalf of whom such payments are made thereafter collects any of such amounts
from others, such Person will promptly repay such amounts to the Seller,
without interest.

          (d)
The Seller’s obligations under this Section 5.2 are obligations solely
of the Seller and will not constitute a claim against the Seller to the extent
that the Seller does not have funds sufficient to make payment of such
obligations. In furtherance of and not in derogation of the foregoing, the
Issuer, the Servicer, the Indenture Trustee and the Owner Trustee, by entering
into or accepting this Agreement, acknowledge and agree that they have no
right, title or interest in or to the Other Assets of the Seller. To the extent
that, notwithstanding the agreements and provisions contained in the preceding
sentence, the Issuer, the Servicer, the Indenture Trustee or the Owner Trustee
either (i) asserts an interest or claim to, or benefit from, Other Assets, or
(ii) is deemed to have any such interest, claim to, or benefit in or from Other
Assets, whether by operation of law, legal process, pursuant to applicable
provisions of insolvency laws or otherwise (including by virtue of Section
1111(b) of the Bankruptcy Code or any successor provision

	
  

 	
  

 	
  

 
	
  

 	
 21

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

having similar
effect under the Bankruptcy Code), then the Issuer, the Servicer, the Indenture
Trustee or the Owner Trustee further acknowledges and agrees that any such
interest, claim or benefit in or from Other Assets is and will be expressly
subordinated to the indefeasible payment in full, which, under the terms of the
relevant documents relating to the securitization or conveyance of such Other
Assets, are entitled to be paid from, entitled to the benefits of, or otherwise
secured by such Other Assets (whether or not any such entitlement or security
interest is legally perfected or otherwise entitled to a priority of
distributions or application under applicable law, including insolvency laws,
and whether or not asserted against the Seller), including the payment of
post-petition interest on such other obligations and liabilities. This
subordination agreement will be deemed a subordination agreement within the
meaning of Section 510(a) of the Bankruptcy Code. The Issuer, the Servicer, the
Indenture Trustee and the Owner Trustee each further acknowledges and agrees
that no adequate remedy at law exists for a breach of this Section 5.2(d) and the terms of this Section
5.2(d) may be enforced by an action for specific performance. The
provisions of this Section 5.2(d) will be for the third party benefit of
those entitled to rely thereon and will survive the termination of this
Agreement.

          SECTION
5.3 Merger or Consolidation of, or Assumption of the Obligations of, Seller.
Any Person (i) into which the Seller may be merged or consolidated, (ii)
resulting from any merger, conversion, or consolidation to which the Seller is
a party, (iii) succeeding to the business of the Seller, or (iv) more than 50%
of the voting stock or voting power and 50% or more of the economic equity of
which is owned directly or indirectly by United Services Automobile Association
or which is United Services Automobile Association, which Person in any of the
foregoing cases executes an agreement of assumption to perform every obligation
of the Seller under this Agreement, will be the successor to the Seller under
this Agreement without the execution or filing of any document or any further
act on the part of any of the parties to this Agreement. The Seller shall
provide notice of any merger, conversion, consolidation, or succession pursuant
to this Section 5.3 to the Rating Agencies. 

          SECTION
5.4 Limitation on Liability of Seller and Others. The Seller and any officer
or employee or agent of the Seller may rely in good faith on the advice of
counsel or on any document of any kind, prima facie properly executed and
submitted by any Person respecting any matters arising hereunder. The Seller
will not be under any obligation to appear in, prosecute, or defend any legal
action that is not incidental to its obligations under this Agreement, and that
in its opinion may involve it in any expense or liability.

          SECTION
5.5 Seller May Own Notes. The Seller, and any Affiliate of the Seller,
may in its individual or any other capacity become the owner or pledgee of
Notes with the same rights as it would have if it were not the Seller or an
Affiliate thereof, except as otherwise expressly provided herein or in the other
Transaction Documents. Except as set forth herein or in the other Transaction
Documents, Notes so owned by the Seller or any such Affiliate will have an
equal and proportionate benefit under the provisions of this Agreement and the
other Transaction Documents, without preference, priority, or distinction as
among all of the Notes. Unless all Notes are owned by the Issuer, the Seller,
the Servicer, the Administrator or any of their respective Affiliates, any
Notes owned by the Issuer, the Seller, the Servicer, the Administrator or any
of their respective Affiliates shall be disregarded with respect to the
determination of any request, demand, authorization, direction, notice,
consent, vote or waiver hereunder or under any other Transaction Document.

	
  

 	
  

 	
  

 
	
  

 	
 22

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

          SECTION
5.6 Sarbanes-Oxley Act Requirements. To the extent any documents are
required to be filed or any certification is required to be made with respect
to the Issuer or the Notes pursuant to the Sarbanes-Oxley Act, the Issuer
hereby authorizes the Servicer and the Seller, or either of them, to prepare,
sign, certify and file any such documents or certifications on behalf of the
Issuer. 

          SECTION
5.7 Compliance with Organizational Documents.
The Seller shall comply with its limited liability company agreement and other
organizational documents.

          SECTION
5.8 Perfection Representations, Warranties and Covenants.
The Seller hereby makes the perfection representations, warranties and
covenants attached hereto as Exhibit B to
the Issuer and the Indenture Trustee and the Issuer shall be deemed to have
relied on such representations, warranties and covenants in acquiring the
Transferred Assets.

ARTICLE VI

THE SERVICER

          SECTION
6.1 Representations of Servicer. The
Servicer makes the following representations and warranties as of the Closing
Date on which the Issuer will be deemed to have relied in acquiring the
Transferred Assets. The representations and warranties speak as of the
execution and delivery of this Agreement and will survive the conveyance of the
Transferred Assets to the Issuer pursuant to this Agreement and the pledge
thereof by the Issuer to the Indenture Trustee pursuant to the Indenture: 

          (a)
Existence and Power. The Servicer is a
federally chartered savings association validly existing and in good standing
under the laws of the United States and has, in all material respects, all
power and authority to carry on its business as it is now conducted. The
Servicer has obtained all necessary licenses and approvals in each jurisdiction
where the failure to do so would materially and adversely affect the ability of
the Servicer to perform its obligations under the Transaction Documents or
affect the enforceability or collectibility of the Receivables or any other
part of the Transferred Assets.

          (b)
Authorization and No Contravention. The
execution, delivery and performance by the Servicer of the Transaction
Documents to which it is a party (i) have been duly authorized by all necessary
action on the part of the Servicer and (ii) do not contravene or constitute a
default under (A) any applicable law, rule or regulation, (B) its
organizational documents or (C) any material agreement, contract, order or
other instrument to which it is a party or its property is subject (other than
violations which do not affect the legality, validity or enforceability of any
of such agreements and which, individually or in the aggregate, would not
materially and adversely affect the transactions contemplated by, or the
Servicer’s ability to perform its obligations under, the Transaction
Documents). 

          (c)
No Consent Required. No approval or
authorization by, or filing with, any Governmental Authority is required in
connection with the execution, delivery and performance by the Servicer of any
Transaction Document other than (i) UCC filings, (ii) approvals and
authorizations that have previously been obtained and filings that have
previously been made and

	
  

 	
  

 	
  

 
	
  

 	
 23

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

(iii)
approvals, authorizations or filings which, if not obtained or made, would not
have a material adverse effect on the enforceability or collectibility of the
Receivables or would not materially and adversely affect the ability of the
Servicer to perform its obligations under the Transaction Documents.

          (d)
Binding Effect. Each Transaction
Document to which the Servicer is a party constitutes the legal, valid and
binding obligation of the Servicer enforceable against the Servicer in
accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, receivership,
conservatorship or other similar laws affecting creditors’ rights generally
and, if applicable, the rights of creditors of federal savings associations
from time to time in effect or by general principles of equity.

          (e)
No Proceedings. There are no actions, suits or Proceedings pending or,
to the knowledge of the Servicer, threatened against the Servicer before or by
any Governmental Authority that (i) assert the invalidity or unenforceability
of this Agreement or any of the other Transaction Documents, (ii) seek to
prevent the issuance of the Notes or the consummation of any of the
transactions contemplated by this Agreement or any of the other Transaction
Documents, (iii) seek any determination or ruling that would materially and
adversely affect the performance by the Servicer of its obligations under this Agreement
or any of the other Transaction Documents, or (iv) relate to the Servicer that
would materially and adversely affect the federal or Applicable Tax State
income, excise, franchise or similar tax attributes of the Notes.

          (f)
Fidelity Bond. The Servicer shall not be required to maintain a fidelity
bond or errors and omissions policy.

          SECTION
6.2 Indemnities of Servicer. The Servicer will be liable in accordance
herewith only to the extent of the obligations specifically undertaken by the
Servicer under this Agreement, and hereby agrees to the following:

          (a)
The Servicer will defend, indemnify and hold harmless the Issuer, the Owner
Trustee, the Indenture Trustee, the Noteholders, the Certificateholder and the
Seller from and against any and all costs, expenses, losses, damages, claims
and liabilities, arising out of or resulting from the use, ownership or
operation by the Servicer or any Affiliate thereof of a Financed Vehicle. 

          (b)
The Servicer will indemnify, defend and hold harmless the Issuer, the Owner
Trustee and the Indenture Trustee from and against any taxes that may at any
time be asserted against any such Person with respect to the transactions
contemplated herein or in the other Transaction Documents, if any, including,
without limitation, any sales, gross receipts, general corporation, tangible
personal property, privilege, or license taxes (but, in the case of the Issuer,
not including any taxes asserted with respect to, and as of the date of, the
conveyance of the Receivables to the Issuer or the issuance and original sales
of the Notes, or asserted with respect to ownership of the Receivables, or
federal or other Applicable Tax State income taxes arising out of the
transactions contemplated by this Agreement and the other Transaction
Documents) and costs and expenses in defending against the same. For the
avoidance of doubt, the Servicer will not indemnify for any costs, expenses,
losses, claims, damages or liabilities due to the credit

	
  

 	
  

 	
  

 
	
  

 	
 24

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

risk of the
Obligor and for which reimbursement would constitute recourse for uncollectible
Receivables.

          (c)
The Servicer will indemnify, defend and hold harmless the Issuer, the Owner
Trustee and the Indenture Trustee and the Seller from and against any and all
costs, expenses, losses, claims, damages, and liabilities to the extent that
such cost, expense, loss, claim, damage, or liability arose out of, or was
imposed upon any such Person through, the negligence, willful misfeasance, or
bad faith of the Servicer in the performance of its duties under this Agreement
or any other Transaction Document to which it is a party, or by reason of its
failure to perform its obligations or of reckless disregard of its obligations
and duties under this Agreement or any other Transaction Document to which it
is a party; provided,
however,
that the Servicer will not indemnify for any costs, expenses, losses, claims,
damages or liabilities arising from its breach of any covenant for which the
repurchase of the affected Receivables is specified as the sole remedy pursuant
to Section 3.6.

          (d)
The Servicer will compensate and indemnify the Owner Trustee to the extent and
subject to the conditions set forth in Sections 8.1 and 8.2 of
the Trust Agreement. The Servicer will compensate and indemnify the Indenture
Trustee to the extent and subject to the conditions set forth in Section 6.7
of the Indenture, except to the extent that any cost, expense, loss, claim,
damage or liability arises out of or is incurred in connection with the
performance by the Indenture Trustee of the duties of a successor Servicer
hereunder.

          (e)
Indemnification under this Section 6.2 by the Bank (or any successor
thereto pursuant to Section 6.6 or Section 7.1) as Servicer, with
respect to the period such Person was the Servicer, will survive the
termination of such Person as Servicer or a resignation by such Person as
Servicer as well as the termination of this Agreement and the Trust Agreement
or the resignation or removal of the Owner Trustee or the Indenture Trustee and
will include reasonable fees and expenses of counsel and expenses of
litigation. If the Servicer has made any indemnity payments pursuant to this Section
6.2 and the Person to or on behalf of whom such payments are made
thereafter collects any of such amounts from others, such Person will promptly
repay such amounts to the Servicer, without interest.

          (f)
Neither the Servicer nor any of the directors or officers or employees or
agents of the Servicer shall be under any liability to the Issuer, the
Noteholders or the Certificateholders, except as provided under this Agreement,
for any action taken or for refraining from the taking of any action pursuant
to this Agreement or for errors in judgment; provided, however,
that this provision shall not protect the Servicer or any such Person against
any liability that would otherwise be imposed by reason of willful misfeasance
or bad faith in the performance of duties or by reason of reckless disregard of
obligations and duties under this Agreement, or by reason of negligence in the
performance of its duties under this Agreement. The Servicer and any director,
officer or employee or agent of the Servicer may rely in good faith on any
Opinion of Counsel or on any Officer’s Certificate of the Seller or certificate
of auditors believed to be genuine and to have been signed by the proper party
in respect of any matters arising under this Agreement.

          SECTION
6.3 Merger or Consolidation of, or Assumption of the Obligations of,
Servicer. Any Person (i) into which the Servicer may be merged or
consolidated, (ii) resulting

	
  

 	
  

 	
  

 
	
  

 	
 25

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

from any
merger, conversion, or consolidation to which the Servicer is a party, (iii)
succeeding to the business of the Servicer or (iv) 50% or more of the equity of
which is owned, directly or indirectly, by the United Services Automobile
Association, which Person in any of the foregoing cases executes an agreement
of assumption to perform every obligation of the Servicer under this Agreement,
will be the successor to the Servicer under this Agreement without the
execution or filing of any paper or any further act on the part of any of the
parties to this Agreement. The Servicer shall provide prior notice of the
effective date of any merger, conversion, consolidation or succession pursuant
to this Section 6.3 to the Rating Agencies, the Indenture Trustee and
the Seller. The Servicer shall provide the Seller in writing such information
as reasonably requested by the Seller to comply with its Exchange Act reporting
obligations with respect to a successor Servicer.

          SECTION
6.4 Limitation on Liability of Servicer and Others. (a) Neither the Servicer
nor any of the directors or officers or employees or agents of the Servicer
will be under any liability to the Issuer, the Indenture Trustee, the Owner
Trustee, the Noteholders[, the Swap Counterparty] or the Certificateholder,
except as provided under this Agreement, for any action taken or for refraining
from the taking of any action pursuant to this Agreement or for errors in
judgment; provided, however, that this provision will not
protect the Servicer or any such Person against any liability that would
otherwise be imposed by reason of willful misfeasance or bad faith in the
performance of duties or by reason of its failure to perform its obligations or
of reckless disregard of obligations and duties under this Agreement, or by
reason of negligence in the performance of its duties under this Agreement
(except for errors in judgment). The Servicer and any director, officer or
employee or agent of the Servicer may rely in good faith on any Opinion of
Counsel or on any Officer’s Certificate of the Seller or certificate of
auditors believed to be genuine and to have been signed by the proper party in
respect of any matters arising under this Agreement.

          (b)
Except as provided in this Agreement, the Servicer will not be under any
obligation to appear in, prosecute, or defend any legal action that is not
incidental to its duties to service the Receivables in accordance with this
Agreement, and that in its opinion may involve it in any expense or liability; provided, however,
that the Servicer may undertake any reasonable action that it may deem
necessary or desirable in respect of this Agreement and the rights and duties
of the parties to this Agreement and the interests of the Noteholders and the
Certificateholder under this Agreement. In such event, the legal expenses and
costs of such action and any liability resulting therefrom will be expenses,
costs and liabilities of the Issuer, and the Servicer shall be entitled to be
reimbursed therefor. Any amounts due the Servicer pursuant to this subsection
shall be payable on a Payment Date in accordance with Section 4.4(a).

          SECTION
6.5 Delegation of Duties. The Servicer may, at any time without notice
or consent, delegate (a) any or all of its duties (including, without
limitation, its duties as custodian) under the Transaction Documents to any of
its Affiliates or (b) specific duties (including, without limitation, its
duties as custodian) to sub-contractors who are in the business of performing
such duties; provided, that no such delegation shall relieve the Servicer of
its responsibility with respect to such duties and the Servicer shall remain
obligated and liable to the Issuer and the Indenture Trustee for its duties
hereunder as if the Servicer alone were performing such duties. For any servicing
activities delegated to third parties in accordance with this Section 6.5,
the

	
  

 	
  

 	
  

 
	
  

 	
 26

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

Servicer shall
follow such policies and procedures to monitor the performance of such third
parties and compliance with such servicing activities as the Servicer follows
with respect to comparable motor vehicle receivables serviced by the Servicer
for its own account. 

          SECTION
6.6 The Bank Not to Resign as Servicer. Subject to the provisions of Sections
6.3 and 6.5, the Bank will not resign from the obligations and
duties hereby imposed on it as Servicer under this Agreement except upon
determination that the performance of its duties under this Agreement is no
longer permissible under applicable law. Notice of any such determination
permitting the resignation of the Bank will be communicated to the Issuer and
the Indenture Trustee at the earliest practicable time (and, if such
communication is not in writing, will be confirmed in writing at the earliest
practicable time) and any such determination will be evidenced by an Opinion of
Counsel to such effect delivered to the Issuer and the Indenture Trustee
concurrently with or promptly after such notice. No such resignation will
become effective until a successor Servicer has (i) assumed the
responsibilities and obligations of the Bank as Servicer and (ii) provided in
writing the information reasonably requested by the Seller to comply with its
reporting obligations under the Exchange Act with respect to a replacement
Servicer.

          SECTION
6.7 Servicer May Own Notes. The Servicer, and any Affiliate of the
Servicer, may, in its individual or any other capacity, become the owner or
pledgee of Notes with the same rights as it would have if it were not the Servicer
or an Affiliate thereof, except as otherwise expressly provided herein or in
the other Transaction Documents. Except as set forth herein or in the other
Transaction Documents, Notes so owned by or pledged to the Servicer or such
Affiliate will have an equal and proportionate benefit under the provisions of
this Agreement, without preference, priority or distinction as among all of the
Notes.

ARTICLE VII

REPLACEMENT OF SERVICER

          SECTION
7.1 Replacement of Servicer.

          (a)
If a Servicer Replacement Event shall have occurred and be continuing, the
Indenture Trustee may or, at the direction of 662⁄3% of the Note Balance of
the Controlling Class shall, by notice given to the Servicer, the Owner
Trustee, the Issuer, the Administrator [,] [and] the Noteholders[ and the Swap
Counterparty], terminate the rights and obligations of the Servicer under this
Agreement with respect to the Receivables. In the event the Servicer is
terminated pursuant to this Section 7.1 or resigns as Servicer pursuant
to Section 6.6 with respect to servicing the Receivables, the Indenture
Trustee, acting at the direction of 662⁄3% of the Note Balance of the
Controlling Class, shall appoint a successor Servicer. Upon the Servicer’s
receipt of notice of termination the predecessor Servicer will continue to
perform its functions as Servicer under this Agreement only until the date
specified in such termination notice or, if no such date is specified in such
termination notice, until receipt of such notice. If a successor Servicer has
not been appointed at the time when the predecessor Servicer ceases to act as
Servicer in accordance with this Section 7.1, the Indenture Trustee
without further action will automatically be appointed the successor Servicer.
Notwithstanding the above, the Indenture Trustee, if it is legally unable or is
unwilling to so act, will appoint, or petition a court of

	
  

 	
  

 	
  

 
	
  

 	
 27

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

competent
jurisdiction to appoint a successor Servicer. Any successor Servicer shall be
an established institution having a net worth of not less than $100,000,000 and
whose regular business includes the servicing of comparable motor vehicle
receivables having an aggregate outstanding principal amount of not less than
$50,000,000.

          (b)
Noteholders holding not less than a majority of the Note Balance of the
Controlling Class may waive any Servicer Replacement Event. Upon any such
waiver, such Servicer Replacement Event shall cease to exist and be deemed to
have been cured and not to have occurred for every purpose of this Agreement,
but no such waiver shall extend to any prior, subsequent or other Servicer
Replacement Event or impair any right consequent thereto.

          (c)
If replaced, the Servicer agrees that it will use commercially reasonable
efforts to effect the orderly and efficient transfer of the servicing of the
Receivables to a successor Servicer. The Servicer agrees to cooperate with the
Successor Servicer in effecting the termination of the responsibilities and
rights of the Servicer hereunder, including, without limitation, the transfer
to the Successor Servicer for administration by it of all cash amounts which
shall at the time be held by the Servicer for deposit, or have been deposited
by the Servicer, in the Collection Account, or for its own account in
connection with its services hereafter or thereafter received with respect to
the Collateral. The Servicer shall transfer to the Successor Servicer all
records held by the Servicer relating to the Collateral in such electronic form
as the Successor Servicer may reasonably request and (ii) any Receivable Files
in the Servicer’s possession. The Servicer will provide access to the
Receivable Files, and the related accounts records, and computer systems
maintained by the Servicer at such times as the Success Servicer direct, but
only upon reasonable notice and during normal business hours, which do not
unreasonably interfere with the Servicer’s normal operations, at the respective
offices of the Servicer. All reasonable costs and expenses incurred in
connection with transferring the Receivable Files to the successor Servicer and
all other reasonable costs and expenses incurred in connection with the
transfer to the successor Servicer related to the performance by the Servicer
hereunder will be paid by the predecessor Servicer upon presentation of
reasonable documentation of such costs and expenses.

          (d)
Upon the effectiveness of the assumption by the successor Servicer of its
duties pursuant to this Section 7.1, the successor Servicer shall be the
successor in all respects to the Servicer in its capacity as Servicer under
this Agreement with respect to the Receivables, and shall be subject to all the
responsibilities, duties and liabilities relating thereto, except with respect
to the obligations of the predecessor Servicer that survive its termination as
Servicer, including indemnification obligations as set forth in Section
6.2(e). In such event, the Indenture Trustee and the Owner Trustee are
hereby authorized and empowered to execute and deliver, on behalf of the
predecessor Servicer, as attorney-in-fact or otherwise, any and all documents
and other instruments, and to do or accomplish all other acts or things
necessary or appropriate to effect the purposes of such termination and
replacement of the Servicer, whether to complete the transfer and endorsement
of the Receivables and related documents, or otherwise. No Servicer shall
resign or be relieved of its duties under this Agreement, as Servicer of the
Receivables, until a newly appointed Servicer for the Receivables shall have
assumed the responsibilities and obligations of the resigning or terminated
Servicer under this Agreement. 

	
  

 	
  

 	
  

 
	
  

 	
 28

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

          (e)
In connection with such appointment, the Indenture Trustee may make such
arrangements for the compensation of the successor Servicer out of Available
Funds as it and such successor Servicer will agree; provided, however, that no such compensation
will be in excess of the amount paid to the predecessor Servicer under this
Agreement. 

          (f)
[The predecessor Servicer shall be entitled to receive reimbursement for any
outstanding Advances made with respect to the Receivables to the extent funds
are available therefore in accordance with Section 4.4.]

          SECTION
7.2 Notification to Noteholders. Upon any termination of, or appointment
of a successor to, the Servicer pursuant to this Article VII, the
Indenture Trustee will give prompt (but in any event, within (5) Business Days
of such termination or appointment) written notice thereof to the Owner
Trustee, the Issuer, the Administrator, each Rating Agency and to the
Noteholders at their respective addresses of record.

ARTICLE VIII

OPTIONAL PURCHASE

          SECTION
8.1 Optional Purchase of Trust Estate. The Servicer shall have the right
at its option (the “Optional Purchase”) to purchase (and/or to designate
one or more other persons to purchase) some or all of the Receivables from the
Issuer on any Payment Date if both of the following conditions are satisfied:
(a) the Net Pool Balance as of the last day of the related Collection Period
has declined to 10% or less of the Net Pool Balance as of the Cut-Off Date and
(b) the sum of the Optional Purchase Price and Available Funds for such Payment
Date would be sufficient to pay (x) the amounts required to be paid under
clauses first
through seventh
of Section 4.4(a) and (y) the Outstanding Note Balance (after
giving effect to the payments described in the preceding clause (x)). The
aggregate purchase price for the Receivables (the “Optional Purchase Price”)
shall equal the lesser of (x) the aggregate principal amounts of the
Receivables (assuming that Receivables that were more than 30 days past due as
of the last day of the related Collection Period have a principal balance of
zero) and (y) the fair market value of the Receivables (assuming that
Receivables that were more than 30 days past due as of the last day of the
related Collection Period have a fair market value of zero), which amount shall
be deposited by or at the direction of the Servicer into the Collection Account
on the Redemption Date. If the Servicer exercises the Optional Purchase, the
Notes shall be redeemed and in each case in whole but not in part on the related
Payment Date for the Redemption Price. Upon any such Optional Purchase, any
funds remaining in the Reserve Account or the Yield Supplement Account will be
distributed to or at the direction of the Certificateholder.

ARTICLE IX

MISCELLANEOUS PROVISIONS

          SECTION
9.1 Amendment.

          (a)
Any term or provision of this Agreement may be amended by the Seller and the
Servicer without the consent of the Indenture Trustee, any Noteholder, the
Issuer, [the Swap

	
  

 	
  

 	
  

 
	
  

 	
 29

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

Counterparty,]
the Owner Trustee or any other Person subject to the satisfaction of one of the
following conditions:

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 the Seller
 or the Servicer delivers to the Indenture Trustee (a) an Opinion of Counsel
 to the effect that such amendment will not materially and adversely affect
 the interests of the Noteholders and (b) Officer’s Certificate of the Seller
 or Servicer, respectively, to the effect that such amendment will not
 materially and adversely affect the interests of the Noteholders; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 the Rating
 Agency Condition is satisfied with respect to such amendment and the Seller
 or the Servicer notifies the Indenture Trustee in writing that the Rating
 Agency Condition is satisfied with respect to such amendment.

 

          (b)
This Agreement (including Appendix A) may also be amended from time to
time by the Seller, the Servicer and the Indenture Trustee, with the consent of
the Noteholders evidencing not less than a majority of the Outstanding Note
Balance of the Controlling Class, for the purpose of adding any provisions to
or changing in any manner or eliminating any of the provisions of this
Agreement or of modifying in any manner the rights of the Noteholders;
provided, that no such amendment shall (i) reduce the interest rate or
principal amount of any Note or change or delay the Final Scheduled Payment
Date of any Note without the consent of the Holder of such Note, or (ii) reduce
the percentage of the Note Balance, the Holders of which are required to
consent to any matter without the consent of the Holders of at least the
percentage of the Note Balance which were required to consent to such matter
before giving effect to such amendment; [provided, further, that such amendment
shall not materially and adversely affect the rights or obligations of the Swap
Counterparty under this Sale and Servicing Agreement unless the Swap
Counterparty shall have consented in writing to such amendment (and such
consent shall be deemed to have been given if the Swap Counterparty does not
object in writing within ten (10) Business Days after receipt of a written
request for such consent);] provided, further, that in the case of any
amendment pursuant to this Section 9.1(b), the Indenture Trustee may not
agree to any such amendment if such amendment failed to comply with the
requirements of Section 9.2 of the
Indenture. It will not be necessary for the consent of Noteholders to approve
the particular form of any proposed amendment or consent, but it will be
sufficient if such consent approves the substance thereof. The manner of
obtaining such consents (and any other consents of Noteholders provided for in
this Agreement) and of evidencing the authorization of the execution thereof by
Noteholders will be subject to such reasonable requirements as the Indenture
Trustee may prescribe, including the establishment of record dates pursuant to
the Note Depository Agreement.

          (c)
Prior to the execution of any amendment pursuant to this Section 9.1,
the Servicer shall provide written notification of the substance of such
amendment to each Rating Agency; and promptly after the execution of any such
amendment or consent, the Servicer shall furnish a copy of such amendment or
consent to each Rating Agency and the Indenture Trustee; provided, that no amendment
pursuant to this Section 9.1 shall be effective which [(i)] affects the
rights, protections or duties of the Indenture Trustee or the Owner Trustee
without the prior written consent of such Person (which consent shall not be
unreasonably withheld or delayed) [or (ii) materially and adversely affects the
rights or obligations of the Swap Counterparty under this

	
  

 	
  

 	
  

 
	
  

 	
 30

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

Agreement
unless the Swap Counterparty shall have consented in writing to such amendment
(and such consent shall be deemed to have been given if the Swap Counterparty
does not object in writing within ten (10) Business Days after receipt of a
written request for such consent)].

          (d)
Prior to the execution of any amendment to this Section 9.1, the Owner
Trustee and the Indenture Trustee shall be entitled to receive and conclusively
rely upon an Opinion of Counsel stating that the execution of such amendment is
authorized or permitted by this Agreement and that all conditions precedent to
the execution and delivery of such amendment have been satisfied. The Owner
Trustee and the Indenture Trustee may, but shall not be obligated to, enter
into or execute on behalf of the Issuer any such amendment which adversely
affects the Owner Trustee’s or the Indenture Trustee’s, as applicable, own
rights, privileges, indemnities, duties or obligations under this Agreement.

          SECTION
9.2 Protection of Title.

          (a)
The Seller shall authorize and file such financing statements and cause to be
authorized and filed such continuation and other statements, all in such manner
and in such places as may be required by law fully to preserve, maintain and
protect the interest of the Issuer and the Indenture Trustee under this Agreement
in the Receivables. The Seller shall deliver (or cause to be delivered) to the
Issuer file-stamped copies of, or filing receipts for, any document filed as
provided above.

          (b)
The Seller shall notify the Issuer and the Indenture Trustee in writing within
ten (10) days following the occurrence of (i) any change in the Seller’s
organizational structure as a limited liability company, (ii) any change in the
Seller’s “location” (within the meaning of Section 9-307 of the UCC of all
applicable jurisdictions) and (iii) any change in the Seller’s name and shall
have taken all action prior to making such change (or shall have made
arrangements to take such action substantially simultaneously with such change,
if it is not possible to take such action in advance) reasonably necessary or
advisable to amend all previously filed financing statements or continuation
statements described in paragraph (a)
above. 

          (c)
The Servicer shall maintain (or shall cause its Sub-Servicer to maintain) in
accordance with its Customary Servicing Practices accounts and records as to
each Receivable accurately and in sufficient detail to permit (i) the reader
thereof to know at any time the status of such Receivable, including payments
and recoveries made and payments owing (and the nature of each) and (ii)
reconciliation between payments or recoveries on (or with respect to) each
Receivable and the amounts from time to time deposited in the Collection
Account in respect of such Receivable.

          (d)
The Servicer shall maintain (or shall cause its Sub-Servicer to maintain) its
computer systems so that, from time to time after the conveyance under this
Agreement of the Receivables, the master computer records (including any backup
archives, it being understood that any such backup archives may not reflect
such interest until thirty-five (35) days after the applicable changes are made
to such master computer records) that refer to a Receivable shall indicate
clearly the interest of the Issuer in such Receivable and that such Receivable
is owned by the Issuer and has been pledged to the Indenture Trustee pursuant
to the Indenture. Indication

	
  

 	
  

 	
  

 
	
  

 	
 31

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

of the
Issuer’s interest in a Receivable shall not be deleted from or modified on such
computer systems until, and only until, the related Receivable shall have been
paid in full, repurchased by the Seller pursuant to Section 2.3 hereof,
repurchased by the Bank pursuant to Section 3.3 of the Purchase
Agreement or purchased by the Servicer in accordance with Section 3.6
hereof.

          (e)
If at any time the Servicer shall propose to sell, grant a security interest in
or otherwise transfer any interest in motor vehicle receivables to any
prospective purchaser, lender or other transferee, the Servicer shall give to
such prospective purchaser, lender or other transferee computer tapes, records
or printouts (including any restored from backup archives) that, if they shall
refer in any manner whatsoever to any Receivable, shall indicate clearly that
such Receivable has been sold and is owned by the Issuer and has been pledged
to the Indenture Trustee.

          (f)
The Servicer, upon receipt of reasonable prior notice, shall permit the
Indenture Trustee, the Owner Trustee and their respective agents at any time
during normal business hours, to the extent it does not unreasonably interfere
with the Servicer’s normal operations, to inspect, audit and, to the extent
permitted by applicable law, make copies of and abstracts from Servicer’s (or
any Sub-Servicer’s) records regarding any Receivable.

          (g)
Upon request, the Servicer shall furnish to the Issuer or to the Indenture
Trustee, within [     ] Business Days, a list of all
Receivables (by contract number and name of Obligor) then owned by the Issuer,
together with a reconciliation of such list to each of the Servicer’s
Certificates furnished before such request indicating removal of Receivables
from the Issuer.

          SECTION
9.3 Other Liens or Interests. Except for the conveyances and grants of
security interests pursuant to this Agreement and the other Transaction
Documents, the Seller shall not sell, pledge, assign or transfer the
Receivables or other property transferred to the Issuer to any other Person, or
grant, create, incur, assume or suffer to exist any Lien (other than Permitted
Liens) on any interest therein, and the Seller shall defend the right, title
and interest of the Issuer in, to and under such Receivables and other property
transferred to the Issuer against all claims of third parties claiming through
or under the Seller.

          SECTION
9.4 Transfers Intended as Sale; Security Interest.

          (a)
Each of the parties hereto expressly intends and agrees that the transfers
contemplated and effected under this Agreement are complete and absolute sales
and transfers rather than pledges or assignments of only a security interest
and shall be given effect as such for all purposes. It is further the intention
of the parties hereto that the Receivables and related Transferred Assets shall
not be part of the Seller’s estate in the event of a bankruptcy or insolvency
of the Seller. The sales and transfers by the Seller of Receivables and related
Transferred Assets hereunder are and shall be without recourse to, or
representation or warranty (express or implied) by, the Seller, except as
otherwise specifically provided herein. The limited rights of recourse
specified herein against the Seller are intended to provide a remedy for breach
of representations and warranties relating to the condition of the property
sold, rather than to the collectibility of the Receivables. 

	
  

 	
  

 	
  

 
	
  

 	
 32

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

          (b)
Notwithstanding the foregoing, in the event that the Receivables and other
Transferred Assets are held to be property of the Seller, or if for any reason
this Agreement is held or deemed to create indebtedness or a security interest
in the Receivables and other Transferred Assets, then it is intended that:

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 This Agreement
 shall be deemed to be a security agreement within the meaning of Articles 8
 and 9 of the New York UCC and the UCC of any other applicable jurisdiction;

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 The
 conveyance provided for in Section 2.1 shall be deemed to be a
 grant by the Seller, and the Seller hereby grants, to the Issuer a security
 interest in all of its right (including the power to convey title thereto),
 title and interest, whether now owned or hereafter acquired, in and to the
 Receivables and other Transferred Assets, to secure such indebtedness and the
 performance of the obligations of the Seller hereunder;

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 The
 possession by the Issuer, or the Servicer as the Issuer’s agent, of the
 Receivable Files and any other property as constitute instruments, money,
 negotiable documents or chattel paper shall be deemed to be “possession by
 the secured party” or possession by the purchaser or a Person designated by
 such purchaser, for purposes of perfecting the security interest pursuant to
 the New York UCC and the UCC of any other applicable jurisdiction; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (iv)

 	
 Notifications
 to Persons holding such property, and acknowledgments, receipts or
 confirmations from Persons holding such property, shall be deemed to be
 notifications to, or acknowledgments, receipts or confirmations from, bailees
 or agents (as applicable) of the Issuer for the purpose of perfecting such
 security interest under applicable law.

 

          SECTION
9.5 Notices, Etc. All demands, notices and communications hereunder
shall be in writing and shall be delivered or mailed by registered or certified
first-class United States mail, postage prepaid, hand delivery, prepaid courier
service, by facsimile or, if so provided on Schedule II to the Sale and
Servicing Agreement, by electronic transmission, and addressed in each case as
specified on Schedule II to the Sale and Servicing Agreement or at such
other address as shall be designated by any of the specified addressees in a
written notice to the other parties hereto. Delivery will be deemed to have
been given and made: (i) upon delivery or, in the case of a letter mailed by
registered or certified first-class United States mail, postage prepaid, three
days after deposit in the mail, (ii) in the case of a facsimile, when receipt
is confirmed by telephone, reply email or reply facsimile from the recipient,
(iii) in the case of electronic transmission, when receipt is confirmed by
telephone or reply email from the recipient and (iv) in the case of an
electronic posting to a password-protected website to which the recipient has
been provided access, upon delivery (without the requirement of confirmation of
receipt) and notice (including email) to such recipient stating that such
electronic posting has occurred.

	
  

 	
  

 	
  

 
	
  

 	
 33

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

          SECTION
9.6 Choice of Law. THIS AGREEMENT SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL, SUBSTANTIVE LAWS OF THE STATE
OF NEW YORK WITHOUT REFERENCE TO THE RULES THEREOF RELATING TO CONFLICTS OF
LAW, OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS
LAW, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

          SECTION
9.7 Headings. The section headings hereof have been
inserted for convenience of reference only and shall not be construed to affect
the meaning, construction or effect of this Agreement.

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

          SECTION
9.9 Waivers. No failure or delay on the part of the Servicer, the
Seller, the Issuer or the Indenture Trustee in exercising any power or right
hereunder (to the extent such Person has any power or right hereunder) shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such power or right preclude any other or further exercise thereof or the
exercise of any other power or right. No notice to or demand on any party
hereto in any case shall entitle it to any notice or demand in similar or other
circumstances. No waiver or approval by any party hereto under this Agreement
shall, except as may otherwise be stated in such waiver or approval, be
applicable to subsequent transactions. No waiver or approval under this
Agreement shall require any similar or dissimilar waiver or approval thereafter
to be granted hereunder.

          SECTION
9.10 Entire Agreement. The Transaction Documents contain a final and
complete integration of all prior expressions by the parties hereto with
respect to the subject matter thereof and shall constitute the entire agreement
among the parties hereto with respect to the subject matter thereof,
superseding all prior oral or written understandings. There are no unwritten
agreements among the parties.

          SECTION
9.11 Severability of Provisions. If any one or more of the covenants,
agreements, provisions or terms of this Agreement shall be for any reason
whatsoever held invalid, then such covenants, agreements, provisions or terms
shall be deemed severable from the remaining covenants, agreements, provisions
or terms of this Agreement and shall in no way affect the validity or enforceability
of the other provisions of this Agreement.

          SECTION
9.12 Binding Effect. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and permitted
assigns. This Agreement shall create and constitute the continuing obligations
of the parties hereto in accordance with its terms, and shall remain in full
force and effect until such time as the parties hereto shall agree.

          SECTION
9.13 Acknowledgment and Agreement. By execution below, the Seller
expressly acknowledges and consents to the pledge, assignment and Grant of a
security interest

	
  

 	
  

 	
  

 
	
  

 	
 34

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

in the
Receivables and the other Transferred Assets by the Issuer to the Indenture Trustee
pursuant to the Indenture for the benefit of the Noteholders [and the Swap
Counterparty]. In addition, the Seller hereby acknowledges and agrees that for
so long as the Notes are outstanding, the Indenture Trustee will have the right
to exercise all powers, privileges and claims of the Issuer under this
Agreement in the event the Issuer shall fail to exercise the same.

          SECTION
9.14 Cumulative Remedies. The remedies herein provided are cumulative
and not exclusive of any remedies provided by law.

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

          SECTION
9.16 Submission to Jurisdiction; Waiver of Jury Trial. Each of the
parties hereto hereby irrevocably and unconditionally:

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

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

          (c)
agrees that service of process in any such action or Proceeding may be effected
by mailing a copy thereof by registered or certified mail (or any substantially
similar form of mail), postage prepaid, to such Person at its address
determined in accordance with Section 9.5; 

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

	
  

 	
  

 	
  

 
	
  

 	
 35

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

          (e)
to the extent permitted by applicable law, each party hereto irrevocably waives
all right of trial by jury in any action, Proceeding or counterclaim based on,
or arising out of, under or in connection with this Agreement, any other
Transaction Document, or any matter arising hereunder or thereunder.

          SECTION
9.17 Limitation of Liability.

          (a)
Notwithstanding anything contained herein to the contrary, this Agreement has
been executed and delivered by
[          ], not in its
individual capacity but solely as Owner Trustee, and in no event shall it have
any liability for the representations, warranties, covenants, agreements or
other obligations of the Issuer hereunder or under the Notes or any of the
other Transaction Documents or in any of the certificates, notices or
agreements delivered pursuant thereto, as to all of which recourse shall be had
solely to the assets of the Issuer. Under no circumstances shall the Owner
Trustee be personally liable for the payment of any indebtedness or expense of
the Issuer or be liable for the breach or failure of any obligations, representation,
warranty or covenant made or undertaken by the Issuer under the Transaction
Documents. For the purposes of this Agreement, in the performance of its duties
or obligations 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.

          (b)
Notwithstanding anything contained herein to the contrary, this Agreement has
been executed and delivered by
[          ], not in its
individual capacity but solely as Indenture Trustee, and in no event shall it
have any liability for the representations, warranties, covenants, agreements
or other obligations of the Issuer under the Notes or any of the other
Transaction Documents or in any of the certificates, notices or agreements
delivered pursuant thereto, as to all of which recourse shall be had solely to
the assets of the Issuer. Under no circumstances shall the Indenture Trustee be
personally liable for the payment of any indebtedness or expense of the Issuer
or be liable for the breach or failure of any obligations, representation,
warranty or covenant made or undertaken by the Issuer under the Transaction
Documents. For the purposes of this Agreement, in the performance of its duties
or obligations hereunder, the Indenture Trustee shall be subject to, and
entitled to the benefits of, the terms and provisions of Article VI of
the Indenture.

          SECTION
9.18 Third-Party Beneficiaries. This Agreement shall inure to the
benefit of and be binding upon the parties hereto, the Noteholders and the
Certificateholder and their respective successors and permitted assigns and
[each of] the Owner Trustee [and the Swap Counterparty] shall be an express
third party beneficiary hereof and may enforce the provisions hereof as if it
were a party hereto. Except as otherwise provided in this Section 9.18,
no other Person will have any right hereunder.

          SECTION
9.19 Information Requests. The parties hereto shall provide any
information reasonably requested by the Servicer, the Issuer, the Seller or any
of their Affiliates, in order to comply with or obtain more favorable treatment
under any current or future law, rule, regulation, accounting rule or
principle.

          SECTION
9.20 Regulation AB. The Servicer shall cooperate fully with the Seller
and the Issuer to deliver to the Seller and the Issuer (including any of its
assignees or designees) any

	
  

 	
  

 	
  

 
	
  

 	
 36

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

and all
statements, reports, certifications, records and any other information
necessary in the good faith determination of the Seller or the Issuer to permit
the Seller to comply with the provisions of Regulation AB and its reporting
obligations under the Exchange Act, together with such disclosures relating to
the Servicer and the Receivables, or the servicing of the Receivables,
reasonably believed by the Seller to be necessary in order to effect such
compliance.

          SECTION
9.21 Information to Be Provided by the Indenture Trustee. 

	
  

 	
  

 
	
  

 	
           (a) For
 so long as the Seller is filing reports under the Exchange Act with respect
 to the Issuer, the Indenture Trustee shall (i) on or before the fifth
 Business Day of each month, notify the Seller, in writing, of any Form 10-D
 Disclosure Item with respect to the Indenture Trustee, together with a
 description of any such Form 10-D Disclosure Item in form and substance
 reasonably satisfactory to the Seller; provided, however, that subject to clauses (b)(iv)
 and (b)(v), the Indenture Trustee shall not be required to provide
 such information in the event that there has been no change to the
 information previously provided by the Indenture Trustee to Seller, and (ii)
 as promptly as practicable following notice to or discovery by a Responsible
 Officer of the Indenture Trustee of any changes to such information, provide
 to the Seller, in writing, such updated information.

 
	
  

 	
  

 
	
  

 	
           (b)
 As soon as available but no later than March 15 of each calendar year for so
 long as the Seller is filing reports with respect to the Issuer under the
 Exchange Act, commencing on March 15, 20[  ], the Indenture Trustee
 shall:

 

	
  

 	
  

 
	
  

 	
           (i)
 deliver to the Seller a report regarding the Indenture Trustee’s assessment
 of compliance with the Servicing Criteria during the immediately preceding
 calendar year, (or since the Closing Date in the case of the first such
 report) as required under paragraph (b) of Rule 13a-18, Rule 15d-18 of the
 Exchange Act and Item 1122 of Regulation AB. Such report shall be signed by a
 Responsible Officer of the Indenture Trustee, and shall address each of the
 Servicing Criteria specified in Exhibit C or such other criteria as
 mutually agreed upon by the Seller and the Indenture Trustee;

 
	
  

 	
  

 
	
  

 	
           (ii)
 cause a firm of registered public accountants that is qualified and
 independent within the meaning of Rule 2-01 of Regulation S-X under the
 Securities Act to deliver to the Seller a report for inclusion in the
 Seller’s filing of Exchange Act Form 10-K with respect to the Issuer that
 attests to, and reports on, the assessment of compliance made by the
 Indenture Trustee and delivered to the Seller pursuant to the preceding
 paragraph. Such attestation shall be in accordance with Rules 1-02(a)(3) and
 2-02(g) of Regulation S-X under the Securities Act and the Exchange Act; 

 
	
  

 	
  

 
	
  

 	
           (iii)
 deliver to the Seller and any other Person that will be responsible for
 signing the certification (a “Sarbanes Certification”) required by
 Rules 13a-14(d) and 15d-14(d) under the Exchange Act (pursuant to Section 302
 of the Sarbanes-Oxley Act) on behalf of the Issuer or the Seller, a back-up
 certification substantially in the form attached hereto as Exhibit D
 or such form as mutually agreed upon by the Seller and the Indenture Trustee;

 
	
  

 	
  

 
	
  

 	
           (iv)
 notify the Seller in writing of any affiliations or relationships (as
 described in Item 1119 of Regulation AB) between the Indenture Trustee and
 any Item 1119 Party, 

 

	
  

 	
  

 	
  

 
	
  

 	
 37

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

	
  

 	
  

 
	
  

 	
 provided, that no
 such notification need be made if the affiliations or relationships are
 unchanged from those provided in the notification in the prior calendar year;
 and

 
	
  

 	
  

 
	
  

 	
           (v)
 deliver to the Seller the certification substantially in the form attached
 hereto as Exhibit E, or such other form as is mutually agreed upon by
 the Seller and the Indenture Trustee regarding any affiliations or
 relationships (as described in Item 1119 of Regulation AB) between the
 Indenture Trustee and any Item 1119 Party and any Form 10-D Disclosure Item.

 

The Indenture
Trustee acknowledges that the parties identified in clause (iii) above
may rely on the certification provided by the Indenture Trustee pursuant to
such clause in signing a Sarbanes Certification and filing such with the
Commission.

	
  

 	
  

 
	
  

 	
           (c) The
 Indenture Trustee shall provide the Seller and the Bank (each, a “Reporting
 Party” and, collectively, the “Reporting Parties”) with (i) notification of
 all demands communicated to a Responsible Officer of the Indenture Trustee
 for the repurchase or replacement of any Receivable for breach of the
 representations and warranties concerning such Receivable and (ii) promptly
 upon written request by, and at the sole cost and expense of, a Reporting
 Party, any other information reasonably requested by a Reporting Party that
 is in the Indenture Trustee’s possession and reasonably accessible to it to
 facilitate compliance by the Reporting Parties with Rule 15Ga-1 under the
 Exchange Act, and Items 1104(e) and 1121(c) of Regulation AB (the “Repurchase
 Rules and Regulations”) (including to accommodate reasonable requests made by
 a Reporting Party in good faith for delivery of information under this
 Section 9.21 on the basis of evolving interpretations of the Repurchase Rules
 and Regulations) but not more than five (5) times per calendar quarter or
 such other quantity of requests as may be mutually agreed to by the Indenture
 Trustee and the applicable Reporting Party. Such notifications shall be
 provided by the Indenture Trustee as soon as practicable and in any event
 within five (5) Business Days of such request or such other time frame as may
 be mutually agreed to by the Indenture Trustee and the applicable Reporting
 Party. Such notices shall be provided to the Reporting Parties to the
 addresses specified in Schedule II to this Agreement, or at such other
 address or by such other means of communication as may be specified by the
 Seller or the Bank to the Indenture Trustee from time to time. In no event
 shall the Indenture Trustee be deemed to be a “securitizer” as defined in
 Section 15G(a)(1) of the Exchange Act with respect to the transactions
 contemplated by the Transaction Documents, nor shall it have (A) any
 responsibility for making any filing required to be made by a securitizer
 under the Exchange Act or Regulation AB, or (B) any duty or obligation to
 undertake any investigation or inquiry related to repurchase activity or
 otherwise to assume any additional duties or responsibilities in respect to
 the transactions contemplated by the Transaction Documents. For purposes of
 this section, a “demand” is limited to a demand for enforcement of a
 repurchase remedy received by the Indenture Trustee. A demand does not
 include general inquiries, including investor inquiries, regarding asset
 performance or possible breaches of representations or warranties.

 

          SECTION
9.22 Form 8-K Filings. So long as the Seller is filing Exchange Act
Reports with respect to the Issuer, the Indenture Trustee shall promptly notify
the Seller of any Reportable Event set forth in clauses (a), (d) or (f) of the
definition thereof (other than any such

	
  

 	
  

 	
  

 
	
  

 	
 38

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

Reportable
Event as to which the Seller or the Servicer has actual knowledge), but in no
event later than two (2) Business Days after a Responsible Officer of the
Indenture Trustee has actual knowledge of such Reportable Event and has
determined, or should have reasonably determined, that such an event
constitutes a Reportable Event.

          SECTION
9.23 [Indemnification. The Indenture Trustee shall indemnify the Seller,
each Affiliate of the Seller and each Person who controls any of such parties
(within the meaning of Section 15 of the Securities Act and Section 20 of the
Exchange Act) and the respective present and former directors, officers,
employees and agents of each of the foregoing, and shall hold each of them
harmless from and against any losses, damages, penalties, fines, forfeitures,
legal fees and expenses and related costs, judgments, and any other costs, fees
and expenses that any of them may sustain arising out of or based upon:

	
  

 	
  

 
	
  

 	
           (a)
 (A) any untrue statement of a material fact contained or alleged to be
 contained in the Indenture Trustee’s Servicing Criteria assessment (such
 information, the “Provided Information”), or (B) the omission or
 alleged omission to state in the Provided Information a material fact
 required to be stated in the Provided Information, or necessary in order to
 make the statements therein, in the light of the circumstances under which
 they were made, not misleading; provided, by way of clarification, that clause
 (B) of this paragraph shall be construed solely by reference to the
 related Provided Information and not to any other information communicated in
 connection with a sale or purchase of securities, without regard to whether
 the Provided Information or any portion thereof is presented together with or
 separately from such other information; or

 
	
  

 	
  

 
	
  

 	
           (b)
 any failure by
 [               ]
 to deliver any Servicing Criteria assessment, information, report,
 certification, accountants’ letter or other material when and as required
 under Sections 9.21 and 9.22.

 
	
  

 	
  

 
	
  

 	
           (c)
 In the case of any failure of performance described in clause (b)
 of this Section 9.23,
 [          ] shall promptly
 reimburse the Seller for all costs reasonably incurred in order to obtain the
 information, report, certification, accountants’ letter or other material not
 delivered as required by
 [          ].

 

          Notwithstanding
anything to the contrary contained herein, in no event shall
[               ]
be liable for special, indirect or consequential damages of any kind
whatsoever, including but not limited to lost profits, even if
[               ]
has been advised of the likelihood of such loss or damage and regardless of the
form of action.]

          SECTION
9.24 Further Assurances. The Seller and the Servicer agree to do and
perform, from time to time, any and all acts and to execute any and all further
instruments required or reasonably requested by the Owner Trustee or the
Indenture Trustee more fully to effect the purposes of this Agreement.

          SECTION
9.25 Cooperation. The parties hereto acknowledge and agree that the
purpose of Sections 9.21 and 9.22 is to facilitate compliance by the
Seller and Servicer with the provisions of Regulation AB and related rules and
regulations of the Commission. Neither the Seller nor the Servicer shall
exercise its right to request delivery of information or other

	
  

 	
  

 	
  

 
	
  

 	
 39

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

performance
under these provisions other than in good faith in order to comply with the
Securities Act, the Exchange Act, the rules and regulations of the Commission
under the Securities Act and the Exchange Act and any comments or requests of
the Commission. The Indenture Trustee acknowledges that interpretations of the
requirements of Regulation AB may change over time, whether due to interpretive
guidance provided by the Commission or its staff, consensus among participants
in the asset-backed securities markets or consensus among counsel to the
parties hereto, and agrees to reasonably cooperate with the Seller to deliver
to the Seller and Servicer such information necessary in the good faith
determination of the Seller and Servicer to permit the Seller or such Servicer
to comply with the provisions of Regulation AB.

          SECTION
9.26 [Limitation of Rights. [All of the rights of the Swap Counterparty
in, to and under this Agreement (including, but not limited to, all of the Swap
Counterparty’s rights as a third party beneficiary of this Agreement and all of
the Swap Counterparty’s rights to receive notice of any action hereunder and to
give or withhold consent to any action hereunder) shall terminate upon the
termination of the Interest Rate Swap Agreement in accordance with the terms
thereof and the payment in full of all amounts owing to the Swap Counterparty
under such Interest Rate Swap Agreement.]

          SECTION
9.27 Rights of the Certificateholder. Notwithstanding anything contained
herein or in any Transaction Document to the contrary, after the Notes are no
longer Outstanding following payment in full of the principal and interest on
the Notes, (i) the Certificateholder will succeed to the rights of the
Noteholders under this Agreement, (ii) the Owner Trustee will succeed to the
rights of, but not, without its express consent, the obligations of the
Indenture Trustee pursuant to this Agreement and (iii) the Collection Account
will continue to be maintained as set forth in Section 4.4; provided,
however, the Certificateholder shall not be entitled to any payments
pursuant to Section 4.4 other than pursuant to clause tenth
thereof.

	
  

 	
  

 	
  

 
	
  

 	
 40

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

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

	
  

 	
  

 	
  

 
	
  

 	
 USAA ACCEPTANCE, LLC,
 as Seller

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 
	
  

 	
  

 	
  

 
	
  

 	
 USAA FEDERAL SAVINGS BANK,
 as Servicer

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 

	
  

 	
  

 	
  

 
	
  

 	
 S-1

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

	
  

 	
  

 	
  

 
	
  

 	
 USAA AUTO OWNER TRUST
 20[  ]-[  ], as Issuer

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 [                         ],

 
	
  

 	
  

 	
 not in its
 individual capacity but

 
	
  

 	
  

 	
 solely as
 Owner Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 

	
  

 	
  

 	
  

 
	
  

 	
 S-2

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

	
  

 	
  

 	
  

 
	
  

 	
  [                         ],
 not in its individual capacity but solely as Indenture Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 

	
  

 	
  

 	
  

 
	
  

 	
 S-3

 	
 Sale and Servicing Agreement

 (USAA
 20[  ]-[  ])

 

SCHEDULE I

REPRESENTATIONS AND WARRANTIES WITH RESPECT
TO THE RECEIVABLES

          (a)
Characteristics of Receivables.
Each Receivable:

	
  

 	
  

 
	
  

 	
           (i)
 has been fully and properly executed or electronically authenticated (as
 defined in the UCC) by the Obligor thereto;

 
	
  

 	
  

 
	
  

 	
           (ii)
 has been originated or acquired directly by the Originator in accordance with
 its customary practices;

 
	
  

 	
  

 
	
  

 	
           (iii)
 as of the Closing Date is secured by a first priority validly perfected
 security interest in the Financed Vehicle in favor of the Originator, as
 secured party, or all necessary actions have been commenced that would result
 in a first priority security interest in the Financed Vehicle in favor of the
 Originator, as secured party, which security interest, in either case, is
 assignable and has been so assigned (x) by the Bank to the Seller and (y) by
 the Seller to the Issuer;

 
	
  

 	
  

 
	
  

 	
           (iv)
 contains customary and enforceable provisions such that the rights and
 remedies of the holder thereof are adequate for realization against the
 collateral of the benefits of the security;

 
	
  

 	
  

 
	
  

 	
           (v)
 provided, at origination, for level periodic payments which fully amortize
 the initial Outstanding Principal Balance over the original term; provided,
 that the amount of the first or last payment may be different but in no event
 more than three times the level monthly payment;

 
	
  

 	
  

 
	
  

 	
           (vi)
 provides for interest at the Contract Rate specified in the Schedule of Receivables;
 and

 
	
  

 	
  

 
	
  

 	
           (vii)
 was originated in the United States.

 

          (b)
Individual Characteristics. Each Receivable has the following
individual characteristics as of the Cut-Off Date:

	
  

 	
  

 
	
  

 	
 (i) each
 Receivable is secured by a new or used automobile or light-duty truck;

 
	
  

 	
  

 
	
  

 	
 (ii) each
 Receivable has a Contract Rate of no less than [    ]%
 and not more than [    ]%;

 
	
  

 	
  

 
	
  

 	
 (iii) each
 Receivable had an original term to maturity of not more than
 [    ] months and not less than
 [    ] months and each Receivable has a remaining term to
 maturity, as of the Cut-Off Date, of [    ] month[s] or
 more;

 

	
  

 	
  

 	
  

 
	
  

 	
 I-1

 	
 Schedule I to the 

 Sale and Servicing Agreement

 

	
  

 	
  

 
	
  

 	
           (iv)
 each Receivable has an Outstanding Principal Balance as of the Cut-Off Date of
 greater than or equal to $[     ];

 
	
  

 	
  

 
	
  

 	
           (v)
 no Receivable has a scheduled maturity date later than
 [     ];

 
	
  

 	
  

 
	
  

 	
           (vi)
 no Receivable was more than 30 days past due as of the Cut-Off Date; 

 
	
  

 	
  

 
	
  

 	
           (vii)
 as of the Cut-Off Date, no Receivable was noted in the records of the
 Servicer as being the subject of any pending bankruptcy or insolvency
 Proceeding;

 
	
  

 	
  

 
	
  

 	
           (viii)
 no Receivable is subject to a force-placed Insurance Policy on the related
 Financed Vehicle; 

 
	
  

 	
  

 
	
  

 	
           (ix)
 each Receivable is a Simple Interest Receivable; and

 
	
  

 	
  

 
	
  

 	
           (x)
 each of the Receivables were selected using selection procedures that were
 not known or intended by the Bank to be adverse to the Noteholders.

 

          (c)
Schedule of Receivables. The information with respect to each Receivable
transferred on the Closing Date set forth in the Schedule of Receivables was
true and correct in all material respects as of the Cut-Off Date.

          (d)
Compliance with Law. Each Receivable complied at the time it was
originated or made, in all material respects with all requirements of
applicable federal, state and local laws, and regulations thereunder,
including, to the extent applicable, usury laws, the Federal Truth in Lending
Act, the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the
Federal Trade Commission Act, the Fair Debt Collection Practices Act, the Fair
Credit Billing Act, the Magnuson-Moss Warranty Act, Consumer Financial
Protection Bureau’s Regulations B and Z, the Servicemembers Civil Relief Act of
2003, as amended, state adaptations of the National Consumer Act and of the
Uniform Consumer Credit Code and any other consumer credit, equal opportunity
and disclosure laws applicable to that Receivable.

          (e)
Binding Obligation. Each Receivable constitutes the legal,
valid and binding payment obligation in writing of the Obligor, enforceable in
all material respects by the holder thereof in accordance with its terms,
subject, as to enforcement, to applicable bankruptcy, insolvency,
reorganization, liquidation or other similar laws and equitable principles
relating to or affecting the enforcement of creditors’ rights generally.

          (f)
Receivable in Force. Each Receivable has not been satisfied,
subordinated or rescinded nor has the related Financed Vehicle been released
from the lien granted by the Receivable in whole or in part.

          (g)
No Waiver. As of the
Cut-Off Date, no provision of a Receivable has been waived.

          (h)
No Default. Except for payment delinquencies continuing for a period of
not more than 30 days as of the Cut-Off Date, the records of the Servicer did
not disclose that any default, breach, violation or event permitting
acceleration under the terms of the Receivable

	
  

 	
  

 	
  

 
	
  

 	
 I-2

 	
 Schedule I to the 

 Sale and Servicing Agreement

 

existed as of
the Cut-Off Date or that any continuing condition that with notice or lapse of
time, or both, would constitute a default, breach, violation or event
permitting acceleration under the terms of the Receivable had arisen as of the
Cut-Off Date.

          (i)
Insurance. Each Receivable requires the Obligor thereunder to insure
the Financed Vehicle under a physical damage insurance policy.

          (j)
No Government Obligor. The Obligor on each Receivable is not the
United States of America or any state thereof or any local government, or any
agency, department, political subdivision or instrumentality of the United
States of America or any state thereof or any local government.

          (k)
Assignment. No Receivable has been originated in, or is subject to the
laws of, any jurisdiction under which the sale, transfer, assignment,
conveyance or pledge of such Receivable would be unlawful, void, or voidable.
The Seller has not entered into any agreement with any Obligor that prohibits,
restricts or conditions the assignment of the related Receivable.

          (l)
Good Title. It is the intention of the Seller that the sale,
contribution, transfer, assignment and conveyance herein contemplated
constitute an absolute sale, contribution, transfer, assignment and conveyance
of the Receivables and that the Receivables not be part of the Seller’s estate
in the event of the filing of a bankruptcy petition by or against the Seller
under any bankruptcy law. No Receivable has been sold, transferred, assigned,
conveyed or pledged to any Person other than pursuant to the Transaction
Documents. As of the Closing Date and immediately prior to the sale and
transfer herein contemplated, the Seller had good and marketable title to each
Receivable free and clear of all Liens, and, immediately upon the sale and
transfer thereof, the Issuer will have good and marketable title to each
Receivable, free and clear of all Liens (other than Permitted Liens).

          (m)
Filings. All filings (including, without limitation, UCC filings)
necessary in any jurisdiction to give the Issuer a first priority, validly
perfected ownership interest in the Receivables (other than the Related
Security with respect thereto), and to give the Indenture Trustee a first
priority perfected security interest therein, will be made within ten days of
the Closing Date.

          (n)
Priority. The Receivable is not pledged, assigned, sold, subject to a
security interest, or otherwise conveyed other than pursuant to the Transaction
Documents. The Seller has not authorized the filing of and is not aware of any
financing statements against the Bank or the Seller that include a description
of collateral covering the Receivables other than any financing statement relating
to security interests granted under the Transaction Documents or that have been
terminated. The Sale and Servicing Agreement creates a valid and continuing
security interest in the Receivable (other than the Related Security with
respect thereto) in favor of the Issuer which security interest is prior to all
other Liens (other than Permitted Liens) and is enforceable as such against all
other creditors of and purchasers and assignees from the Seller.

          (o)
Characterization of Receivables. Each Receivable constitutes either
“tangible chattel paper,” “electronic chattel paper,” an “account,” a
“promissory note” or a “payment intangible,” each as defined in the UCC.

	
  

 	
  

 	
  

 
	
  

 	
 I-3

 	
 Schedule I to the 

 Sale and Servicing Agreement

 

          (p)
One Original. With respect to any Receivable
constituting electronic chattel paper, there is only one “authoritative copy”
(as such term is used in Section 9-105 of the UCC) of the Receivable or with
respect to any Receivable constituting tangible chattel paper for which an
original executed copy exists, there is no more than one original executed copy
of such Receivable and none of the instruments, tangible chattel paper or
electronic chattel paper that constitute or evidence the Receivables has any
marks or notations indicating that it has been pledged, assigned or otherwise
conveyed to any Person other than to a party to the Transaction Documents.

          (q)
No Defenses. The Seller
has no knowledge either of any facts which would give rise to any right of
rescission, set-off, counterclaim or defense, or of the same being asserted or
threatened, with respect to any Receivable.

          (r)
No Repossession. As of
the Cut-Off Date, no Financed Vehicle shall have been repossessed.

	
  

 	
  

 	
  

 
	
  

 	
 I-4

 	
 Schedule I to the 

 Sale and Servicing Agreement

 

SCHEDULE II

NOTICE
ADDRESSES

	
  

 
	
 If to the
 Issuer:

 
	
  

 
	
 c/o
 [               ]

 
	
 [               ]

 
	
 [               ]

 
	
 Attention:
 [               ]

 
	
 Telephone:
 [               ]

 
	
 Facsimile:
 [               ]

 
	
  

 
	
 with copies
 to the Administrator, USAA Federal Savings Bank and the Indenture Trustee

 
	
  

 
	
 If to the
 Owner Trustee:

 
	
  

 
	
 [                    ]

 
	
 [                    ]

 
	
 [                    ]

 
	
 Telecopier
 No.:
 [               ]

 
	
 Attention:
 [               ]

 
	
  

 
	
 If to the
 Indenture Trustee:

 
	
  

 
	
 [                    ]

 
	
 [                    ]

 
	
 [                    ]

 
	
 Telecopier
 No.:
 [               ]

 
	
 Attention:
 [               ]

 
	
  

 
	
 If to the
 Bank, the Servicer or the Administrator:

 
	
  

 
	
 USAA Federal
 Savings Bank 

 
	
 10750
 McDermott Freeway 

 
	
 San Antonio,
 Texas 78288

 
	
 Telecopier
 No.:
 [               ]

 
	
 Attention:
 [               ]

 
	
  

 
	
 If to the
 Seller:

 
	
  

 
	
 USAA
 Acceptance, LLC

 
	
 9830
 Colonnade Blvd., Suite 600 

 
	
 San Antonio,
 Texas 78230

 
	
 Telecopier
 No.:
 [               ]

 

	
  

 	
  

 	
  

 
	
  

 	
 II-1

 	
 Schedule II to the 

 Sale and Servicing Agreement

 

	
  

 
	
 Attention:
 [               ]
 

 
	
  

 

	
  

 	
  

 	
  

 
	
  

 	
 II-2

 	
 Schedule II to the 

 Sale and Servicing Agreement

 

EXHIBIT A

FORM OF ASSIGNMENT PURSUANT TO 

SALE AND SERVICING AGREEMENT

[       ], 20[  ]

          For value
received, in accordance with the Sale and Servicing Agreement (the “Agreement”), dated as of
[     ], 20[  ] between USAA Auto Owner
Trust 20[  ]-[  ], a Delaware statutory trust (the “Issuer”),
USAA Acceptance, LLC, a Delaware limited liability company (the “Seller”),
USAA Federal Savings Bank, a federally chartered savings association (the “Bank”),
and [          ], a
[                         ]
as indenture trustee, on the terms and subject to the conditions set forth in
the Agreement, the Seller does hereby transfer, assign, set over, sell and
otherwise convey to the Issuer without recourse (subject to the obligations in
the Agreement) on the Closing Date, all of its right, title and interest in, to
and under the Receivables set forth on the schedule of Receivables delivered by
the Seller to the Issuer on the date hereof, the Collections on or after the
Cut-Off Date, the Receivable Files and the Related Security relating thereto,
together with all of Seller’s rights under the Purchase Agreement and all
proceeds of the foregoing; which sale shall be effective as of the Cut-Off
Date.

          The
foregoing sale does not constitute and is not intended to result in any
assumption by the Issuer of any obligation of the undersigned or the Originator
to the Obligors or any other Person in connection with the Receivables, or the
other assets and properties conveyed hereunder or any agreement, document or
instrument related thereto.

          This
assignment is made pursuant to and upon the representations, warranties and
agreements on the part of the undersigned contained in the Agreement and is
governed by the Agreement.

          Capitalized
terms used herein and not otherwise defined shall have the meaning assigned to
them in the Agreement.

[Remainder of page intentionally left blank]

	
  

 	
  

 	
  

 
	
  

 	
 A-1

 	
 Exhibit A to the 

 Sale and Servicing Agreement

 

          IN
WITNESS HEREOF, the undersigned has caused this assignment to be duly executed
as of the date first above written. 

	
  

 	
  

 	
  

 
	
  

 	
 USAA ACCEPTANCE, LLC

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: 

 
	
  

 	
 Title: 

 

	
  

 	
  

 	
  

 
	
  

 	
 A-2

 	
 Exhibit A to the 

 Sale and Servicing Agreement

 

EXHIBIT B

PERFECTION REPRESENTATIONS, WARRANTIES AND
COVENANTS

In addition to
the representations, warranties and covenants contained in the Agreement, the
Seller hereby represents, warrants and covenants to the Issuer and the
Indenture Trustee as follows on the Closing Date:

General

1. This
Agreement creates a valid and continuing security interest (as defined in the
applicable UCC) in the Receivables and the other Transferred Assets in favor of
the Issuer, which security interest is prior to all other Liens, and is
enforceable as such against creditors of and purchasers from the Seller. 

2. The
Receivables constitute “chattel paper” (including “electronic chattel paper”
and “tangible chattel paper”), “accounts,” “instruments” or “general
intangibles,” within the meaning of the applicable UCC. 

3. Each
Receivable is secured by a first priority validly perfected security interest
in the related Financed Vehicle in favor of the Originator, as secured party,
or all necessary actions with respect to such Receivable have been taken or
will be taken to perfect a first priority security interest in the related
Financed Vehicle in favor of the Originator, as secured party.

Creation

4. Immediately
prior to the sale, transfer, assignment and conveyance of a Receivable by the
Seller to the Issuer, the Seller owned and had good and marketable title to
such Receivable free and clear of any Lien and immediately after the sale,
transfer, assignment and conveyance of such Receivable to the Issuer, the
Issuer will have good and marketable title to such Receivable free and clear of
any Lien.

5. The related
Originator has received all consents and approvals to the sale of the
Receivables hereunder to the Issuer required by the terms of the Receivables
that constitute instruments.

Perfection

6. The Seller
has caused or will have caused, within ten days after the effective date of
this Agreement, the filing of all appropriate financing statements in the
proper filing office in the appropriate jurisdictions under applicable law in
order to perfect the security interest in the Receivables granted to the Issuer
hereunder; and the Servicer, in its capacity as custodian, has in its
possession the original copies of such instruments or tangible chattel paper
that constitute or evidence the Receivables, and all financing statements
referred to in this paragraph contain a statement that: “A purchase of or
security interest in any collateral described in this financing statement will
violate the rights of the Secured Party/Purchaser”.

	
  

 	
  

 	
  

 
	
  

 	
 B-1

 	
 Exhibit B to the 

 Sale and Servicing Agreement

 

7. With
respect to Receivables that constitute instruments or tangible chattel paper,
either: 

(i) all
original executed copies of each such instrument or tangible chattel paper have
been delivered to the Indenture Trustee; or

(ii) such
instruments or tangible chattel paper are in the possession of the Servicer and
the Indenture Trustee has received a written acknowledgment from the Servicer
that the Servicer (in its capacity as custodian) is holding such instruments or
tangible chattel paper solely on behalf and for the benefit of the Indenture
Trustee; or 

(iii) the
Servicer received possession of such instruments or tangible chattel paper after
the Indenture Trustee received a written acknowledgment from the Servicer that
the Servicer is acting solely as agent of the Indenture Trustee.

Priority

8. Neither the
Seller nor the Bank has authorized the filing of, and is not aware of, any
financing statements against either the Seller or the Bank that include a
description of collateral covering the Receivables other than any financing
statement (i) relating to the conveyance of the Receivables by the Bank to the
Seller under the Purchase Agreement, (ii) relating to the conveyance of the
Receivables by the Seller to the Issuer under the Sale and Servicing Agreement,
(iii) relating to the security interest granted to the Indenture Trustee under
the Indenture or (iv) that has been terminated.

9. Neither the
Seller nor the Bank is aware of any material judgment, ERISA or tax lien
filings against either the Seller or the Bank.

10. Neither
the Seller nor a custodian or vaulting agent thereof holding any Receivable
that is electronic chattel paper has communicated an “authoritative copy” (as
such term is used in Section 9-105 of the UCC) of any loan agreement that
constitutes or evidences such Receivable to any Person other than the Servicer.

11. None of
the instruments, tangible chattel paper or electronic chattel paper that
constitute or evidence the Receivables has any marks or notations indicating
that they have been pledged, assigned or otherwise conveyed to any Person other
than the Seller, the Issuer or the Indenture Trustee.

Survival
of Perfection Representations

12.
Notwithstanding any other provision of the Sale and Servicing Agreement or any
other Transaction Document, the perfection representations, warranties and
covenants contained in this Exhibit B shall be continuing, and remain in
full force and effect until such time as all obligations under the Transaction
Documents and the Notes have been finally and fully paid and performed.

	
  

 	
  

 	
  

 
	
  

 	
 B-2

 	
 Exhibit B to the 

 Sale and Servicing Agreement

 

No
Waiver

13. The
Servicer shall provide the Rating Agencies with prompt written notice of any
material breach of the perfection representations, warranties and covenants
contained in this Exhibit B, and shall not, without satisfying the
Rating Agency Condition, waive a breach of any of such perfection representations,
warranties or covenants. 

Servicer
to Maintain Perfection and Priority

14. The Servicer covenants
that, in order to evidence the interests of the Seller and Issuer under the
Sale and Servicing Agreement and the Indenture Trustee under the Indenture, Servicer
shall take such action, or execute and deliver such instruments as may be
necessary or advisable (including, without limitation, such actions as are
requested by the Indenture Trustee) to maintain and perfect, as a first
priority perfected security interest, the Indenture Trustee’s security interest
in the Receivables. The Servicer shall, from time to time and within the time
limits established by law, prepare and file, all financing statements,
amendments, continuations, initial financing statements in lieu of a
continuation statement, terminations, partial terminations, releases or partial
releases, or any other filings necessary or advisable to continue, maintain and
perfect the Indenture Trustee’s security interest in the Receivables as a first-priority
perfected security interest.

	
  

 	
  

 	
  

 
	
  

 	
 B-3

 	
 Exhibit B to the 

 Sale and Servicing Agreement

 

EXHIBIT C

SERVICING CRITERIA TO BE ADDRESSED IN 

INDENTURE TRUSTEE’S ASSESSMENT OF COMPLIANCE

The assessment of compliance to be delivered
by the Indenture Trustee shall address, at a 
minimum, the criteria identified
below as “Applicable Servicing Criteria”1:

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Servicing Criteria

 	
  

 	
 Applicable 

 Servicing Criteria

 
	

 

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Reference

 	
  

 	
 Criteria

 	
  

 	
  

 
	

 

 	
  

 	

 

 	
  

 	
 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 General Servicing Considerations

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 	
  

 
	
 1122(d)(1)(i)

 	
  

 	
 Policies and procedures are
 instituted to monitor any performance or other triggers and events of default
 in accordance with the transaction agreements.

 	
  

 	
  

 
	
 1122(d)(1)(ii)

 	
  

 	
 If any material servicing
 activities are outsourced to third parties, policies and procedures are
 instituted to monitor the third party’s performance and compliance with such
 servicing activities.

 	
  

 	
  

 
	
 1122(d)(1)(iii)

 	
  

 	
 Any requirements in the
 transaction agreements to maintain a back-up servicer for the pool assets are
 maintained.

 	
  

 	
  

 
	
 1122(d)(1)(iv)

 	
  

 	
 A fidelity bond and errors and
 omissions policy is in effect on the party participating in the servicing
 function throughout the reporting period in the amount of coverage required
 by and otherwise in accordance with the terms of the transaction agreements.

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Cash Collection and Administration

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 	
  

 
	
 1122(d)(2)(i)

 	
  

 	
 Payments on pool assets are
 deposited into the appropriate custodial bank accounts and related bank
 clearing accounts no more than two business days following receipt, or such
 other number of days specified in the transaction agreements.

 	
  

 	
  

 
	
 1122(d)(2)(ii)

 	
  

 	
 Disbursements made via wire
 transfer on behalf of an obligor or to an investor are made only by
 authorized personnel.

 	
  

 	
 X

 
	
 1122(d)(2)(iii)

 	
  

 	
 Advances of funds or guarantees
 regarding collections, cash flows or distributions, and any interest or other
 fees charged for such advances, are made, reviewed and approved as specified
 in the transaction agreements.

 	
  

 	
  

 
	
 1122(d)(2)(iv)

 	
  

 	
 The related accounts for the
 transaction, such as cash reserve accounts or accounts established as a form
 of overcollateralization, are separately maintained (e.g., with respect to
 commingling of cash) as set forth in the transaction agreements.

 	
  

 	
 X

 
	
 1122(d)(2)(v)

 	
  

 	
 Each custodial account is
 maintained at a federally insured depository institution as set forth in the
 transaction agreements. For purposes of this criterion, “federally insured
 depository institution” with respect to a foreign financial institution means
 a foreign financial institution that meets the requirements of Rule
 13k-1(b)(1) of the Securities Exchange Act.

 	
  

 	
 X2 

 
	
 1122(d)(2)(vi)

 	
  

 	
 Unissued checks are safeguarded
 so as to prevent unauthorized access.

 	
  

 	
  

 

 

1 Each assessment of compliance delivered by the Indenture Trustee shall be made
only toward such portion(s) of the servicing criteria applicable to the
Indenture Trustee and not such other portion(s) applicable to other persons.

2 Assessment of compliance to be given by Indenture Trustee shall be only with
respect to trust accounts maintained by the Indenture Trustee under the Sale
and Servicing Agreement and the Indenture. 

	
  

 	
  

 	
  

 
	
  

 	
C-1

 	
 Exhibit C to the

Sale and Servicing Agreement

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Servicing Criteria

 	
  

 	
 Applicable 

 Servicing Criteria

 
	

 

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Reference

 	
  

 	
 Criteria

 	
  

 	
  

 
	

 

 	
  

 	

 

 	
  

 	

 

 
	
 1122(d)(2)(vii)

 	
  

 	
 Reconciliations are prepared on a
 monthly basis for all asset-backed securities related bank accounts,
 including custodial accounts and related bank clearing accounts. These
 reconciliations are (A) mathematically accurate; (B) prepared within 30
 calendar days after the bank statement cutoff date, or such other number of
 days specified in the transaction agreements; (C) reviewed and approved by
 someone other than the person who prepared the reconciliation; and (D)
 contain explanations for reconciling items. These reconciling items are
 resolved within 90 calendar days of their original identification, or such
 other number of days specified in the transaction agreements.

 	
  

 	
 X

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Investor Remittances and Reporting

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 	
  

 
	
 1122(d)(3)(i)

 	
  

 	
 Reports to investors, including
 those to be filed with the Commission, are maintained in accordance with the
 transaction agreements and applicable Commission requirements. Specifically,
 such reports (A) are prepared in accordance with timeframes and other terms
 set forth in the transaction agreements; (B) provide information calculated
 in accordance with the terms specified in the transaction agreements; (C) are
 filed with the Commission as required by its rules and regulations; and (D)
 agree with investors’ or the trustee’s records as to the total unpaid
 principal balance and number of pool assets serviced by the Servicer.

 	
  

 	
  

 
	
 1122(d)(3)(ii)

 	
  

 	
 Amounts due to investors are
 allocated and remitted in accordance with timeframes, distribution priority
 and other terms set forth in the transaction agreements.

 	
  

 	
 X
(solely with respect to remittances)

 
	
 1122(d)(3)(iii)

 	
  

 	
 Disbursements made to an investor
 are posted within two business days to the Servicer’s investor records, or
 such other number of days specified in the transaction agreements.

 	
  

 	
 X

 
	
 1122(d)(3)(iv)

 	
  

 	
 Amounts remitted to investors per
 the investor reports agree with cancelled checks, or other form of payment,
 or custodial bank statements.

 	
  

 	
 X

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Pool Asset Administration

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 	
  

 
	
 1122(d)(4)(i)

 	
  

 	
 Collateral or security on pool
 assets is maintained as required by the transaction agreements or related
 asset pool documents.

 	
  

 	
  

 
	
 1122(d)(4)(ii)

 	
  

 	
 Pool assets and related documents
 are safeguarded as required by the transaction agreements

 	
  

 	
  

 
	
 1122(d)(4)(iii)

 	
  

 	
 Any additions, removals or
 substitutions to the asset pool are made, reviewed and approved in accordance
 with any conditions or requirements in the transaction agreements.

 	
  

 	
  

 
	
 1122(d)(4)(iv)

 	
  

 	
 Payments on pool assets,
 including any payoffs, made in accordance with the related pool asset
 documents are posted to the Servicer’s obligor records maintained no more
 than two business days after receipt, or such other number of days specified
 in the transaction agreements, and allocated to principal, interest or other
 items (e.g., escrow) in accordance with the related asset pool documents.

 	
  

 	
  

 
	
 1122(d)(4)(v)

 	
  

 	
 The Servicer’s records regarding
 the accounts and the accounts agree with the Servicer’s records with respect
 to an obligor’s unpaid principal balance.

 	
  

 	
  

 
	
 1122(d)(4)(vi)

 	
  

 	
 Changes with respect to the terms
 or status of an obligor’s account (e.g., loan modifications or re-agings) are
 made, reviewed and approved by authorized personnel in accordance with the
 transaction agreements and related pool asset documents.

 	
  

 	
  

 
	
 1122(d)(4)(vii)

 	
  

 	
 Loss mitigation or recovery
 actions (e.g., forbearance plans, modifications and deeds in lieu of
 foreclosure, foreclosures and repossessions, as applicable) are initiated,
 conducted and concluded in accordance with the timeframes or other
 requirements established by the transaction agreements.

 	
  

 	
  

 

	
  

 	
  

 	
  

 
	
  

 	
C-2

 	
 Exhibit C to the

Sale and Servicing Agreement

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Servicing Criteria

 	
  

 	
 Applicable 

 Servicing Criteria

 
	

 

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Reference

 	
  

 	
 Criteria

 	
  

 	
  

 
	

 

 	
  

 	

 

 	
  

 	

 

 
	
 1122(d)(4)(viii)

 	
  

 	
 Records documenting collection
 efforts are maintained during the period a pool asset is delinquent in
 accordance with the transaction agreements. Such records are maintained on at
 least a monthly basis, or such other period specified in the transaction
 agreements, and describe the entity’s activities in monitoring delinquent
 pool assets including, for example, phone calls, letters and payment rescheduling
 plans in cases where delinquency is deemed temporary (e.g., illness or
 unemployment).

 	
  

 	
  

 
	
 1122(d)(4)(ix)

 	
  

 	
 Adjustments to interest rates or
 rates of return for pool assets with variable rates are computed based on the
 related pool asset documents.

 	
  

 	
  

 
	
 1122(d)(4)(x)

 	
  

 	
 Regarding any funds held in trust
 for an obligor (such as escrow accounts): (A) such funds are analyzed, in
 accordance with the obligor’s Account documents, on at least an annual basis,
 or such other period specified in the transaction agreements; (B) interest on
 such funds is paid, or credited, to obligors in accordance with applicable
 Account documents and state laws; and (C) such funds are returned to the
 obligor within 30 calendar days of full repayment of the related Accounts, or
 such other number of days specified in the transaction agreements.

 	
  

 	
  

 
	
 1122(d)(4)(xi)

 	
  

 	
 Payments made on behalf of an
 obligor (such as tax or insurance payments) are made on or before the related
 penalty or expiration dates, as indicated on the appropriate bills or notices
 for such payments, provided that such support has been received by the
 servicer at least 30 calendar days prior to these dates, or such other number
 of days specified in the transaction agreements.

 	
  

 	
  

 
	
 1122(d)(4)(xii)

 	
  

 	
 Any late payment penalties in
 connection with any payment to be made on behalf of an obligor are paid from
 the servicer’s funds and not charged to the obligor, unless the late payment
 was due to the obligor’s error or omission.

 	
  

 	
  

 
	
 1122(d)(4)(xiii)

 	
  

 	
 Disbursements made on behalf of
 an obligor are posted within two business days to the obligor’s records
 maintained by the servicer, or such other number of days specified in the
 transaction agreements.

 	
  

 	
  

 
	
 1122(d)(4)(xiv)

 	
  

 	
 Delinquencies, charge-offs and
 uncollectible accounts are recognized and recorded in accordance with the
 transaction agreements.

 	
  

 	
  

 
	
 1122(d)(4)(xv)

 	
  

 	
 Any external enhancement or other
 support, identified in Item 1114(a)(1) through (3) or Item 1115 of Regulation
 AB, is maintained as set forth in the transaction agreements.

 	
  

 	
  

 

	
  

 	
  

 	
  

 
	
  

 	
C-3

 	
 Exhibit C to the

Sale and Servicing Agreement

 

EXHIBIT D

FORM
OF INDENTURE TRUSTEE’S ANNUAL CERTIFICATION

Re:     USAA AUTO OWNER TRUST 20[  ]-[  ]

                    [                         ],
not in its individual capacity but solely as indenture trustee (the “Indenture
Trustee”), certifies to USAA Acceptance, LLC (the “Seller”), and its
officers, with the knowledge and intent that they will rely upon this
certification, that:

	
  

 	
  

 
	
  

 	
           (1) It
 has reviewed the report on assessment of the Indenture Trustee’s compliance
 provided in accordance with Rules 13a-18 and 15d-18 under the Securities
 Exchange Act of 1934, as amended (the “Exchange Act”), and Item 1122
 of Regulation AB (the “Servicing Assessment”) (collectively, the “Indenture
 Trustee Information”);

 
	
  

 	
  

 
	
  

 	
           (2) To
 the best of its knowledge, the Indenture Trustee Information, taken as a
 whole, does not contain any untrue statement of a material fact or omit to
 state a material fact necessary to make the statements made, in the light of
 the circumstances under which such statements were made, not misleading with
 respect to the period of time covered by the Indenture Trustee Information;
 and

 
	
  

 	
  

 
	
  

 	
           (3) To
 the best of its knowledge, all of the information required to be provided by
 the Indenture Trustee pursuant to Sections 9.21 and 9.22 of the
 Agreement has been provided to the Seller.

 

	
  

 	
  

 	
  

 
	
  

 	
 [                    ],
 not in its individual capacity but solely as Indenture Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
 Date:

 	
  

 
	
  

 	
  

 	

 

 

	
  

 	
  

 	
  

 
	
  

 	
D-1

 	
 Exhibit D to the

Sale and Servicing Agreement

 

EXHIBIT E

FORM
OF INDENTURE TRUSTEE’S ANNUAL CERTIFICATION

REGARDING ITEM 1117 AND ITEM 1119 OF REGULATION AB

          Reference
is made to the Form 10-K of USAA Acceptance, LLC with respect to USAA Auto
Owner Trust 20[     ]-[     ] (the “Form 10-K”) for the fiscal year ended
December 31, 20[     ]. Capitalized terms used but not otherwise defined herein
shall have the respective meanings given to them in the Form 10-K.

          [               ],
a [               ] (“[
  ]”), does hereby certify to the Sponsor, the Seller and the
Issuing Entity that:

               1.
As of the date of the Form 10-K, there are no pending legal proceedings against
[     ] or proceedings known to be contemplated by governmental authorities against
[     ] that would be material to the investors in the Notes.

               2.
As of the date of the Form 10-K, there are no affiliations, as contemplated by
Item 1119 of Regulation AB, between [     ] and any of USAA Federal Savings Bank
(in its capacity as Sponsor, Originator, Servicer and Administrator), USAA
Acceptance, LLC, the Indenture Trustee, the Owner Trustee and the Issuing Entity,
or any affiliates of such parties.

          IN WITNESS
WHEREOF, [     ] has caused this certificate to be executed in its corporate name
by an officer thereunto duly authorized.

Dated:
____________, 20[    ]

	
  

 	
  

 	
  

 
	
  

 	
 [          ],
 as Indenture Trustee

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 
	
  

 	
 Title:

 

	
  

 	
  

 	
  

 
	
  

 	
E-1

 	
 Exhibit E to the

Sale and Servicing Agreement

 

APPENDIX A

DEFINITIONS

          The
following terms have the meanings set forth, or referred to, below:

          “Accrued
Class A Note Interest” means, with respect to any Payment Date, the
sum of the Class A Noteholders’ Monthly Accrued Interest for such Payment Date
and the Class A Noteholders’ Interest Carryover Shortfall for such Payment
Date.

          “Accrued
Class B Note Interest” means, with respect to any Payment Date, the
sum of the Class B Noteholders’ Monthly Accrued Interest for such Payment Date
and the Class B Noteholders’ Interest Carryover Shortfall for such Payment
Date.

          “Act” has the
meaning set forth in Section 11.3(a) of the Indenture.

          “Administration
Agreement” means the Administration Agreement, dated as of the
Closing Date, among the Administrator, the Issuer and the Indenture Trustee, as
the same may be amended and supplemented from time to time.

          “Administrator”
means the Bank, or any successor Administrator under the Administration
Agreement.

          [“Advance” has the meaning set forth in Section
4.3(c) of the Sale and Servicing Agreement.]

          “Affiliate” means, for any specified
Person, any other Person which, directly or indirectly, controls, is controlled
by or is under common control with such specified Person and “affiliated” has a
meaning correlative to the foregoing. For purposes of this definition,
“control” means the power, directly or indirectly, to cause the direction of
the management and policies of a Person.

          “Applicable Tax State” means, as of any date, each
State as to which any of the following is then applicable: (a) a State in which
the Owner Trustee maintains its Corporate Trust Office, (b) a State in which
the Owner Trustee maintains its principal executive offices, and (c) the State
of Texas.

          “Authenticating Agent”
means any Person authorized by the Indenture Trustee to act on behalf of the
Indenture Trustee to authenticate and deliver the Notes.

          “Authorized Newspaper”
means a newspaper of general circulation in The City of New York, printed in
the English language and customarily published on each Business Day, whether or
not published on Saturdays, Sundays and holidays.

          “Authorized Officer”
means (a) with respect to the Issuer, (i) any officer of the Owner Trustee who
is authorized to act for the Owner Trustee in matters relating to the Issuer
and who is identified on the list of Authorized Officers delivered by the Owner
Trustee to the Indenture Trustee on the Closing Date or (ii) so long as the
Administration Agreement is in effect, any officer of the Administrator who is
authorized to act for the Administrator in matters relating to 

Appendix A to the Sale and Servicing 

Agreement (USAA 20[ ]-[ ])

the Issuer pursuant to the Administration Agreement and who is
identified on the list of Authorized Officers delivered by the Administrator to
the Owner Trustee and the Indenture Trustee on the Closing Date (as such list
may be modified or supplemented from time to time thereafter) and (b) with
respect to the Owner Trustee, the Note Registrar (if other than the Indenture
Trustee) and the Servicer, any officer of the Owner Trustee, the Note Registrar
(if other than the Indenture Trustee) or the Servicer, as applicable, who is
authorized to act for the Owner Trustee, the Note Registrar (if other than the
Indenture Trustee) or the Servicer, as applicable, in matters relating to the
Owner Trustee, the Note Registrar (if other than the Indenture Trustee) or the
Servicer and who is identified on the list of Authorized Officers delivered by
each of the Owner Trustee and the Servicer to the Indenture Trustee on the
Closing Date or by the Note Registrar on the date of its appointment as such
(as such list may be modified or supplemented from time to time thereafter).

          “Available Funds”
means, for any Payment Date and the related Collection Period, an amount equal
to the sum of the following amounts: (i) all Collections received by the
Servicer during such Collection Period, (ii) the sum of the Repurchase Prices
deposited into the Collection Account with respect to each Receivable that is
to become a Repurchased Receivable on such Payment Date, (iii) the Reserve
Account Excess Amount for such Payment Date [, (iv) the Net Swap Receipts
(excluding Swap Termination Payments received from the Swap Counterparty and
deposited into the Swap Termination Payment Account), (v) amounts on deposit in
the Swap Termination Payment Account to the extent such amounts are required to
be included in Available Funds pursuant to Section 4.8(d) of the Sale and
Servicing Agreement and (vi) Swap Replacement Proceeds, to the extent required
to be included in Available Funds pursuant to Section 4.8(f) of the Sale and
Servicing Agreement].

          “Available Funds Shortfall Amount” means,
as of any Payment Date, the amount by which the amounts required to be paid
pursuant to clauses first through
seventh
of Section 4.4(a) of the Sale and Servicing Agreement exceeds the sum of
[(i)] Available Funds for such Payment Date [and (ii) Advances made by the
Servicer on such Payment Date].

          “Bank”
means USAA Federal Savings Bank, a federally chartered savings association.

          “Bankruptcy Code” means the United States
Bankruptcy Code, 11 U.S.C. 101 et seq., as amended.

          “Bankruptcy
Remote Party” means each of the Seller, the Issuer, any other trust created by the Seller or any
limited liability company or corporation wholly-owned by the Seller.

          “Benefit Plan”
means (i) any “employee benefit plan” as defined in Section 3(3) of ERISA which
is subject to Title I of ERISA, (ii) a “plan” described by Section 4975(e)(1)
of the Code, which is subject to Section 4975 of the Code or (iii) any entity
deemed to hold the assets of any of the foregoing by reason of an employee
benefit plan’s or other plan’s investment in such entity.

          “Book-Entry Notes”
means a 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 of the Indenture.

2

          “Business Day”
means any day other than a Saturday, a Sunday or a day on which banking
institutions in the states of Delaware, Texas or New York, or in the state in
which the Corporate Trust Office of the Indenture Trustee is located, are
authorized or obligated by law, executive order or government decree to be
closed.

          “Certificate”
means a certificate evidencing the beneficial interest of the Certificateholder
in the Issuer, substantially in the form of Exhibit A to the Trust Agreement.
For the avoidance of doubt, the references in the Transaction Documents to a
“Certificate” or a “Certificateholder”, unless the context otherwise requires,
shall be deemed to be references to “Certificates” or “Certificateholders” if
more than one Certificate has been issued. 

          “Certificate of Title” means, with respect
to any Financed Vehicle, the certificate of title or other documentary evidence
of ownership of such Financed Vehicle as issued by the department, agency or
official of the jurisdiction (whether in paper or electronic form) in which
such Financed Vehicle is titled responsible for accepting applications for, and
maintaining records regarding, certificates of title and liens thereon.

          “Certificate of Trust” means the
certificate of trust for the Issuer filed by the Owner Trustee pursuant to the
Statutory Trust Statute.

          “Certificateholder”
means the Holder of a Certificate.

          “Class”
means a group of Notes whose form is identical except for variation in
denomination, principal amount or owner, and references to “each Class” thus
mean each of the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the
Class A-4 Notes and the Class B Notes.

          “Class A
Noteholders” means, collectively, the Class A-1 Noteholders, the
Class A-2 Noteholders, the Class A-3 Noteholders and the Class A-4 Noteholders.

          “Class A
Noteholders’ Interest Carryover Shortfall” means, with respect to
any Payment Date, the excess of the Class A Noteholders’ Monthly Accrued
Interest for the preceding Payment Date and any outstanding Class A
Noteholders’ Interest Carryover Shortfall on such preceding Payment Date, over
the amount in respect of interest that is actually paid to Noteholders of Class
A Notes on such preceding Payment Date, plus interest on the amount of interest
due but not paid to Noteholders of Class A Notes on the preceding Payment Date,
to the extent permitted by law, at the respective Interest Rates borne by such
Class A Notes for the related Interest Period.

          “Class A
Noteholders’ Monthly Accrued Interest” means, with respect to any
Payment Date, the aggregate interest accrued for the related Interest Period on
the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class A-4
Notes at the respective Interest Rate for such Class on the Note Balance of the
Notes of each such Class on the immediately preceding Payment Date or the
Closing Date, as the case may be, after giving effect to all payments of
principal to the Noteholders of the Notes of such Class on or prior to such
preceding Payment Date. 

3

          “Class A
Notes” means, collectively, the Class A-1 Notes, the Class A-2
Notes, the Class A-3 Notes and the Class A-4 Notes.

          “Class A-1 Final Scheduled Payment Date”
means the Payment Date occurring in [     ].

          “Class A-1 Interest Rate”
means [     ]% per annum (computed on the basis of the
actual number of days elapsed during the applicable Interest Period, but
assuming a 360-day year).

          “Class A-1 Note Balance”
means, at any time, the Initial Class A-1 Note Balance reduced by all payments
of principal made prior to such time on the Class A-1 Notes.

          “Class A-1 Noteholder” means
the Person in whose name a Class A-1 Note is registered on the Note Register.

          “Class A-1 Notes”
means the Class of auto loan asset backed notes designated as Class A-1 Notes,
issued in accordance with the Indenture.

          “Class A-2 Final Scheduled Payment Date”
means the Payment Date occurring in [     ].

          “Class A-2 Interest Rate”
means [     ]% per annum (computed on the basis of a
360-day year of twelve 30-day months).

          “Class A-2 Note Balance”
means, at any time, the Initial Class A-2 Note Balance reduced by all payments
of principal made prior to such time on the Class A-2 Notes.

          “Class A-2 Noteholder” means
the Person in whose name a Class A-2 Note is registered on the Note Register.

          “Class A-2 Notes”
means the Class of auto loan asset backed notes designated as Class A-2 Notes,
issued in accordance with the Indenture.

          “Class A-3
Final Scheduled Payment Date” means the Payment Date occurring in
[     ].

          “Class A-3
Interest Rate” means [     ]% per annum
(computed on the basis of a 360-day year of twelve 30-day months).

          “Class A-3
Note Balance” means, at any time, the Initial Class A-3 Note Balance
reduced by all payments of principal made prior to such time on the Class A-3
Notes.

          “Class A-3
Noteholder” means the Person in whose name a Class A-3 Note is
registered on the Note Register.

          “Class A-3
Notes” means the Class of auto loan asset backed notes designated as
Class A-3 Notes, issued in accordance with the Indenture.

          “Class A-4
Final Scheduled Payment Date” means the Payment Date occurring in
[     ].

4

          “Class A-4 Interest Rate”
means [LIBOR +] [     ]% per annum (computed on the
basis of [the actual number of days elapsed during the applicable Interest
Period, but assuming a 360-day year] [a 360-day year of twelve 30-day months]).

          “Class A-4 Note Balance”
means, at any time, the Initial Class A-4 Note Balance reduced by all payments
of principal made prior to such time on the Class A-4 Notes.

          “Class A-4 Noteholder” means
the Person in whose name a Class A-4 Note is registered on the Note Register.

          “Class A-4 Notes”
means the Class of auto loan asset backed notes designated as Class A-4 Notes,
issued in accordance with the Indenture.

          “Class B
Final Scheduled Payment Date” means the Payment Date occurring in
[     ].

          “Class B
Interest Rate” means [     ]% per annum
(computed on the basis of a 360-day year of twelve 30-day months).

          “Class B Note
Balance” means, at any time, the Initial Class B Note Balance
reduced by all payments of principal made prior to such time on the Class B
Notes.

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

          “Class B
Noteholders’ Interest Carryover Shortfall” means, with respect to
any Payment Date, the excess of the Class B Noteholders’ Monthly Accrued
Interest for the preceding Payment Date and any outstanding Class B
Noteholders’ Interest Carryover Shortfall on such preceding Payment Date, over
the amount in respect of interest that is actually paid to Noteholders of Class
B Notes on such preceding Payment Date, plus interest on the amount of interest
due but not paid to Noteholders of Class B Notes on the preceding Payment Date,
to the extent permitted by law, at the Class B Interest Rate for the related
Interest Period.

          “Class B
Noteholders’ Monthly Accrued Interest” means, with respect to any
Payment Date, the aggregate interest accrued for the related Interest Period on
the Class B Notes at the Class B Interest Rate on the Class B Note Balance on
the immediately preceding Payment Date or the Closing Date, as the case may be,
after giving effect to all payments of principal to the Class B Noteholders on
or prior to such preceding Payment Date.

          “Class B
Notes” means the Class of auto loan asset backed notes designated as
Class B Notes, issued in accordance with the Indenture.

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

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

5

          “Closing Date”
means [          ],
20[     ].

          “Code” means the Internal Revenue Code of
1986, as amended, modified or supplemented from time to time, and any successor
law thereto, and the regulations promulgated and the rulings issued thereunder.

          “Collateral” has the meaning set
forth in the Granting Clause of the Indenture.

          “Collection Account”
means the trust account established and maintained pursuant to Section 4.1 of
the Sale and Servicing Agreement.

          “Collection Period” means the period
commencing on the first day of each calendar month and ending on the last day
of such calendar month (or, in the case of the initial Collection Period, the
period commencing on the close of business on the Cut-Off Date and ending on [
], 20[ ]). As used herein, the “related” Collection Period with respect to a
Payment Date shall be deemed to be the Collection Period which precedes such
Payment Date.

          “Collections” means, with respect to any Receivable and to
the extent received by the Servicer on or after the Cut-Off Date, (i) any
monthly payment by or on behalf of the Obligor thereunder, (ii) any full or
partial prepayment of such Receivable, (iii) all Liquidation Proceeds and (iv)
any other amounts received by the Servicer which, in accordance with the
Customary Servicing Practices, would customarily be applied to the payment of
accrued interest or to reduce the Outstanding Principal Balance of such
Receivable; provided, however, that the term “Collections” in no event will
include (1) for any Payment Date, any amounts in respect of any Receivable the
Repurchase Price of which has been included in the Available Funds on such
Payment Date or a prior Payment Date, (2) any Supplemental Servicing Fees or
(3) rebates of premiums with respect to the cancellation or termination of any
Insurance Policy, extended warranty or service contract. 

          “Commission”
means the U.S. Securities and Exchange Commission.

          “Contract Rate” means, with respect to a
Receivable, the rate per annum at which interest accrues under the retail motor
vehicle installment loan evidencing such Receivable. Such rate may be less than
the “Annual Percentage Rate” disclosed in the Receivable.

          “Controlling Class” shall
mean, subject to the proviso contained in the last paragraph of the definition
of “Outstanding”, with respect to any Notes Outstanding, the Class A Notes
(voting together as a single Class) as long as any Class A Notes are
Outstanding, and thereafter the Class B Notes as long as any Class B Notes are
Outstanding (excluding, in each case, Notes held by the Seller or any of its
Affiliates unless all of the Notes are then owned by the Seller or its
Affiliates).

          “Controlling
Person” shall mean a Person, other than a Benefit Plan, that has
discretionary authority or control with respect to the assets of the Issuer or
who provides investment advice for a direct or indirect fee with respect to
those assets, or any affiliate of such Person. 

6

          “Corporate Trust Office”
means:

          (a) as used
with respect to the Indenture Trustee, the principal office of the Indenture
Trustee at which at any particular time its corporate trust business shall be
administered which office at date of the execution of the Indenture is located
at
[               ],
Attention: [               ]
USAA 20[     ]-[     ], or at
such other address as the Indenture Trustee may designate from time to time by
notice to the Noteholders, [the Swap Counterparty,] the Administrator, the
Servicer and the Issuer, or the principal corporate trust office of any
successor Indenture Trustee (the address of which the successor Indenture
Trustee will notify the Noteholders, the Administrator, the Servicer and the
Owner Trustee); and

          (b) as used
with respect to the Owner Trustee, the corporate trust office of the Owner
Trustee, [     ] or at such other address as the Owner Trustee may designate by
notice to the Certificateholder and the Seller, or the principal corporate
trust office of any successor Owner Trustee (the address of which the successor
Owner Trustee will notify the Certificateholder and the Seller).

          “Customary Servicing
Practices” means
the customary servicing practices of the Servicer or any Sub-Servicer with
respect to all comparable motor vehicle receivables that the Servicer or such
Sub-Servicer, as applicable, services for itself or others, as such practices
may be changed from time to time, it being understood that the Servicer and the
Sub-Servicers may not have the same “Customary
Servicing Practices”. 

          “Cut-Off Date” means
[          ], 20[     ].

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

          “Defaulted Receivable”
means, with respect to any Collection Period, any Receivable (i) that the
Servicer determines is unlikely to be paid in full or (ii) with respect to
which at least 5% of a scheduled payment is 120 or more days delinquent as of
the end of a calendar month. The Outstanding Principal Balance of any
Receivable that becomes a “Defaulted
Receivable” will be deemed to be zero as of the date it becomes a “Defaulted Receivable”.

          “Definitive Note”
means a definitive fully registered Note issued pursuant to Section 2.12 of the
Indenture. 

          “Delivery” when used with respect to Trust
Account Property means:

          (a) with
respect to (I) bankers’ acceptances, commercial paper, negotiable certificates
of deposit and other obligations that constitute “instruments” (as defined in
Section 9-102(a)(47) of the UCC) and are susceptible of physical delivery,
transfer of actual possession thereof to the Indenture Trustee or its nominee
or custodian by physical delivery to the Indenture Trustee or its nominee or
custodian endorsed to, or registered in the name of, the Indenture Trustee or
its nominee or custodian or endorsed in blank, and (II) with respect to a
“certificated security” (as defined in Section 8-102(a)(4) of the UCC) transfer
of actual possession thereof (i) by physical delivery of such certificated
security to the Indenture Trustee or its nominee or custodian endorsed to the
Indenture Trustee or its nominee or custodian or endorsed in blank, or to
another 

7

person, other than a “securities intermediary” (as defined in Section
8-102(a)(14) of the UCC), who acquires possession of the certificated security
on behalf of the Indenture Trustee or its nominee or custodian or, having
previously acquired possession of the certificate, acknowledges that it holds
for the Indenture Trustee or its nominee or custodian or (ii) if such
certificated security is in registered form by delivery thereof to a
“securities intermediary”, endorsed to or registered in the name of the
Indenture Trustee or its nominee or custodian and the making by such
“securities intermediary” of entries on its books and records identifying such
certificated securities as belonging to the Indenture Trustee or its nominee or
custodian and the sending by such “securities intermediary” of a confirmation
of the purchase of such certificated security by the Indenture Trustee or its
nominee or custodian (all of the foregoing, “Physical Property”), and, in
any event, any such Physical Property in registered form shall be in the name
of the Indenture Trustee or its nominee or custodian; and such additional or
alternative procedures as may hereafter become appropriate to effect the
complete transfer of ownership of any such Trust Account Property to the
Indenture Trustee or its nominee or custodian, consistent with changes in
applicable law or regulations or the interpretation thereof; 

          (b) with
respect to any securities issued by the U.S. Treasury, the Federal Home Loan
Mortgage Corporation, the Federal National Mortgage Association or the other
government agencies, instrumentalities and establishments of the United States
identified in Appendix A to Federal Reserve Bank Operating Circular No. 7 as in
effect from time to time that is a “book-entry security” (as such term is
defined in Federal Reserve Bank Operating Circular No. 7) held in a securities
account and eligible for transfer through the Fedwire® Securities
Service operated by the Federal Reserve System pursuant to Federal book-entry
regulations, the following procedures, all in accordance with applicable law,
including applicable Federal regulations and Articles 8 and 9 of the UCC:
book-entry registration of such Trust Account Property to an appropriate
securities account maintained with a Federal Reserve Bank by a “participant”
(as such term is defined in Federal Reserve Bank Operating Circular No. 7) that
is a “depository institution” (as defined in Section 19(B)(1)(A) of the Federal
Reserve Act) pursuant to applicable Federal regulations, and issuance by such
depository institution of a deposit advice or other written confirmation of
such book-entry registration to the Indenture Trustee or its nominee or custodian
of the purchase by the Indenture Trustee or its nominee or custodian of such
book-entry securities; the making by such depository institution of entries in
its books and records identifying such book entry security held through the
Federal Reserve System pursuant to Federal book-entry regulations or a security
entitlement thereto as belonging to the Indenture Trustee or its nominee or
custodian and indicating that such depository institution holds such Trust
Account Property solely as agent for the Indenture Trustee or its nominee or
custodian; and such additional or alternative procedures as may hereafter
become appropriate to effect complete transfer of ownership of any such Trust
Account Property to the Indenture Trustee or its nominee or custodian, consistent
with changes in applicable law or regulations or the interpretation thereof;
and

          (c) with
respect to any item of Trust Account Property that is an “uncertificated
security” (as defined in Section 8-102(a)(18) of the UCC) and that is not governed
by clause (b) above, (i) registration on the books and records of the
issuer thereof in the name of the Indenture Trustee or its nominee or
custodian, or (ii) registration on the books and records of the issuer thereof
in the name of another person, other than a securities intermediary, who
acknowledges 

8

that it holds such uncertificated security for the benefit of the
Indenture Trustee or its nominee or custodian.

          “Depositor” means the Seller
in its capacity as Depositor under the Trust Agreement.

          “Determination Date”
means the second Business Day preceding the related Payment Date, beginning
[          ],
20[     ].

          “Dollar” and “$” mean
lawful currency of the United States of America.

          “DTC” means
The Depository Trust Company, and its successors.

          “Eligible Account”
means either (a) a segregated account with an Eligible Institution or (b) a
segregated trust account with the corporate trust department of a depository
institution acting in its fiduciary capacity organized under the laws of the
United States of America or any one of the states thereof or the District of
Columbia (or any domestic branch of a foreign bank), having corporate trust
powers and acting as trustee for funds deposited in such account, so long as
the long-term unsecured debt of such depository institution shall have a credit
rating from each Rating Agency in one of its generic rating categories which
signifies investment grade. Any such trust account may be maintained with the Owner
Trustee, the Indenture Trustee or any of their respective Affiliates, if such
accounts meet the requirements described in clause (b) of the
preceding sentence.

          “Eligible Institution”
means a depository institution or trust company (which may be the Owner
Trustee, the Indenture Trustee or any of their respective Affiliates) organized
under the laws of the United States of America or any one of the states thereof
or the District of Columbia (or any domestic branch of a foreign bank) (a)
which at all times has either (i) a long-term senior unsecured debt rating of
“Aa2” or better by Moody’s and “AA-” or better by Standard & Poor’s or such
other rating that is acceptable to each Rating Agency, as evidenced by a letter
from such Rating Agency to the Issuer or the Indenture Trustee, (ii) a
certificate of deposit rating of “P-1” by Moody’s and “A-1+” by Standard &
Poor’s or (iii) such other rating that is acceptable to each Rating Agency, as
evidenced by a letter from such Rating Agency to the Issuer or the Indenture
Trustee and (b) whose deposits are insured by the Federal Deposit Insurance
Corporation; provided, that a foreign financial institution shall be deemed to
satisfy clause (b) if such foreign financial institution meets the
requirements of Rule 13k-1(b)(1) under the Exchange Act (17 CFR
§240.13k-1(b)(1)).

          “Eligible Receivable”
means a Receivable meeting all of the criteria set forth on Schedule I
of each of the Purchase Agreement and the Sale and Servicing Agreement as of
the Closing Date.

          “ERISA” means
the Employee Retirement Income Security Act of 1974, as amended and any
successor law thereto, and the regulations promulgated and rulings issued
thereunder.

          “Event of Default”
has the meaning set forth in Section 5.1 of the Indenture.

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

9

          “Exchange Act
Reports” means any reports on Form 10-D, Form 8-K and Form 10-K
filed or to be filed by the Seller with respect to the Issuer under the
Exchange Act.

          “FDIC”
means the Federal Deposit Insurance Corporation or any successor agency.

          “Final Scheduled Payment
Date” means, with respect to (i) the Class A-1 Notes, the Class A-1 Final Scheduled Payment Date,
(ii) the Class A-2 Notes, the Class A-2 Final Scheduled Payment Date, (iii) the
Class A-3 Notes, the Class A-3 Final Scheduled Payment Date, (iv) the Class A-4
Notes, the Class A-4 Final Scheduled Payment Date and (v) the Class B Notes,
the Class B Final Scheduled Payment Date.

          “Financed Vehicle”
means an automobile or light-duty truck, together with all accessions thereto,
securing an Obligor’s indebtedness under the applicable Receivable.

          “First
Allocation of Principal” means, with respect to any Payment Date, an
amount equal to the excess, if any, of (a) the Note Balance of the Class A
Notes as of such Payment Date (before giving effect to any principal payments
made on the Class A Notes on such Payment Date) over (b) the Net Pool Balance
as of the end of the related Collection Period; provided, however,
that the “First Allocation of Principal” shall not exceed the Note Balance of
the Class A Notes; provided, further, that the “First
Allocation of Principal” for any Payment Date on and after the Final Scheduled
Payment Date for any Class of Class A Notes shall not be less than the amount
that is necessary to reduce the Note Balance of that Class of Class A Notes to
zero.

          “Form 10-D
Disclosure Item” means, with respect to any Person, (a) any legal
proceedings pending against such Person or of which any property of such Person
is then subject, or (b) any proceedings known to be contemplated by
governmental authorities against such Person or of which any property of such
Person would be subject, in each case that would be material to the
Noteholders.

          “GAAP” means
generally accepted accounting principles in the USA, applied on a materially
consistent basis.

          “Governmental Authority”
means any (a) Federal, state, municipal, foreign or other governmental entity,
board, bureau, agency or instrumentality, (b) administrative or regulatory
authority (including any central bank or similar authority) or (c) court or
judicial authority.

          “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 the Indenture. A
Grant of the Collateral 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 Collateral and all other moneys 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. Other forms of the verb “to Grant” shall have correlative
meanings.

10

          “Holder”
means, as the context may require, the Certificateholder or a Noteholder or
both.

          “Indenture”
means the Indenture, dated as of the Closing Date, between the Issuer and
Indenture Trustee, as the same may be amended and supplemented from time to
time.

          “Indenture Trustee”
means [          ], a
[          ] organized under
the laws of the State of [     ], not in its
individual capacity but as indenture trustee under the Indenture, or any
successor trustee under the Indenture.

          “Independent”
means, when used with respect to any specified Person, that such Person (i) is
in fact independent of the Issuer, any other obligor upon the Notes, the
Administrator and any Affiliate of any of the foregoing Persons, (ii) does not
have any direct financial interest or any material indirect financial interest
in the Issuer, any such other obligor upon the Notes, the Administrator or any
Affiliate of any of the foregoing Persons and (iii) is not connected with the
Issuer, any such other obligor upon the Notes, the Administrator 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 of the Indenture, made by an independent
appraiser or other expert appointed by an Issuer Order, and such opinion or
certificate shall state that the signer has read the definition of
“Independent” in this Appendix A and that the signer is Independent
within the meaning thereof.

          “Initial Class A-1 Note
Balance” means $[     ].

          “Initial Class A-2 Note
Balance” means $[     ].

          “Initial Class A-3 Note
Balance” means $[     ].

          “Initial Class A-4 Note Balance”
means $[     ].

          “Initial Class B Note Balance”
means $[     ].

          [“Initial
Interest Rate Swap Agreement” means the ISDA Master Agreement, dated
as of the Closing Date, between the Initial Swap Counterparty and the Issuer,
the Schedule and the Credit Support Annex thereto, dated as of the Closing Date
and, the Confirmations thereto, each dated as of the Closing Date, and entered
into pursuant to such ISDA Master Agreement, as the same may be amended or
supplemented from time to time in accordance with the terms thereof.]

          “Initial Note Balance”
means, for any Class, the Initial Class A-1 Note Balance, the Initial Class A-2
Note Balance, the Initial Class A-3 Note Balance, the Initial Class A-4 Note
Balance or the Initial Class B Note Balance, as applicable, or with respect to
the Notes generally, the sum of the foregoing.

          “Initial Reserve Account Deposit Amount”
means an amount equal to $[     ].

11

          [“Initial Swap
Counterparty” means
[          ], as the swap
counterparty under the Initial Interest Rate Swap Agreement.]

          “Initial
Yield Supplement Account Deposit Amount” means an
amount equal to $[          ].

          “Insolvency Event” means, with respect to
any Person, (i) the filing of a decree or order for relief by a court having
jurisdiction in the premises in respect of such Person in an involuntary case
under any applicable federal or state bankruptcy, insolvency or other similar
law now or hereafter in effect, or appointing a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of such Person, or
ordering the winding-up or liquidation of such Person’s affairs, and such
decree or order shall remain unstayed and in effect for a period of 90
consecutive days or (ii) the commencement by such Person of a voluntary case
under any applicable federal or state bankruptcy, insolvency or other similar
law now or hereafter in effect, or the consent by such Person to the entry of
an order for relief in an involuntary case under any such law, or the consent
by such Person to the appointment or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official of
such Person, or the making by such Person of any general assignment for the
benefit of creditors, or the failure by such Person generally to pay its debts
as such debts become due, or the taking of action by such Person in furtherance
of any of the foregoing.

          “Insurance Policy”
means (i) any theft and physical damage insurance policy maintained by the
Obligor under a Receivable, providing coverage against loss or damage to or
theft of the related Financed Vehicle, and (ii) any credit life or credit
disability insurance maintained by an Obligor in connection with any
Receivable.

          “Interest Period” means, with respect to
any Payment Date, (a) with respect to the Class A-1 Notes from and including
the Closing Date (in the case of the first Payment Date) or from and including
the most recent Payment Date to but excluding that Payment Date (for example,
for a Payment Date in February, the Interest Period is from and including the
Payment Date in January to but excluding the Payment Date in February) based
upon actual days elapsed and a 360-day year and (b) for each other Class of
Notes, from and including the [     ] day of the
calendar month preceding each Payment Date (or from and including the Closing
Date in the case of the first Payment Date) to but excluding the
[     ] day of the following month based upon a
360-day year of twelve 30-day months.

          “Interest
Rate” means (a) with respect to the Class A-1 Notes, the Class A-1
Interest Rate, (b) with respect to the Class A-2 Notes, the Class A-2 Interest
Rate, (c) with respect to the Class A-3 Notes, the Class A-3 Interest Rate, (d)
with respect to the Class A-4 Notes, the Class A-4 Interest Rate or (e) with
respect to the Class B Notes, the Class B Interest Rate.

          [“Interest
Rate Swap Agreement” means the Initial Interest Rate Swap Agreement
and any Replacement Interest Rate Swap Agreement.]

          “Issuer”
means USAA Auto Owner Trust
20[     ]-[     ], a Delaware
statutory trust established pursuant to the Trust Agreement and the filing of
the Certificate of Trust, until a successor replaces it and, thereafter, means
such successor.

12

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

          “Item 1119
Party” means the Seller, the Bank, the Servicer, the Indenture
Trustee, the Owner Trustee, any underwriter of the Notes[, any Swap Counterparty]
and any other material transaction party identified by the Seller or the Bank
to the Indenture Trustee and the Owner Trustee in writing.

          [“LIBOR”
means, with respect to any Interest Period, the London interbank offered rate
for deposits in U.S. dollars having a maturity of one month commencing on the
related LIBOR Determination Date which appears on Telerate Page 3750 as of
11:00 a.m., London time, on such LIBOR Determination Date; provided, however,
that for the first Interest Period, LIBOR shall mean an interpolated rate for
deposits based on London interbank offered rates for deposits in U.S. Dollars
for a period that corresponds to the actual number of days in the first
Interest Period. If the rates used to determine LIBOR do not appear on the
Telerate Page 3750, the rates for that day will be determined on the basis of
the rates at which deposits in U.S. dollars, having a maturity of one month and
in a principal amount of not less than U.S. $1,000,000 are offered at
approximately 11:00 a.m. London time, on such LIBOR Determination Date to prime
banks in the London interbank market by the reference banks. The Indenture
Trustee will request the principal London office of each of such reference
banks to provide a quotation of its rate. If at least two such quotations are
provided, the rate for that day will be the arithmetic mean to the nearest
1/100,000 of 1.00% (0.0000001), with five one-millionths of a percentage point
rounded upward, of all such quotations. If fewer than two such quotations are
provided, the rate for that day will be the arithmetic mean to the nearest
1/100,000 of 1.00% (0.0000001), with five one-millionths of a percentage point
rounded upward, of the offered per annum rates that one or more leading banks
in New York City, selected by the Indenture Trustee (after consulting with the
Seller), are quoting as of approximately 11:00 a.m., New York City time, on
such LIBOR Determination Date to leading European banks for United States
dollar deposits for that maturity; provided, that if the banks selected as
aforesaid are not quoting as mentioned in this sentence, LIBOR in effect for
the applicable Interest Period will be LIBOR in effect for the previous
Interest Period. The reference banks are the four major banks in the London
interbank market selected by the Indenture Trustee (after consultation with the
Seller).]

          [“LIBOR
Determination Date” means the second London Business Day prior to
the Closing Date with respect to the first Payment Date and, as to each
subsequent Payment Date, the second London Business Day prior to the
immediately preceding Payment Date.]

          “Lien” means,
for any asset or property of a Person, a lien, security interest, mortgage,
pledge or encumbrance in, of or on such asset or property in favor of any other
Person, except any Permitted Lien.

          “Liquidation
Proceeds” means, with respect to any Receivable, (a) insurance
proceeds received by the Servicer with respect to the Insurance Policies, (b)
amounts received by the Servicer in connection with such Receivable pursuant to
the exercise of rights under such Receivable and (c) the monies collected by
the Servicer (from whatever source, including proceeds of a sale of a Financed
Vehicle or a deficiency balance recovered from the Obligor after 

13

the charge-off of such Receivable) on such Receivable, in the case of
each of the foregoing clauses (a)
through (c), net of any
expenses (including, without limitation, any auction, painting, repair or
refurbishment expenses in respect of the related Financed Vehicle) incurred by
the Servicer in connection therewith and any payments required by law to be
remitted to the Obligor; provided, however, that the Repurchase Price for
any Receivable shall not constitute “Liquidation
Proceeds”.

          [“London
Business Day” means any day other than a Saturday, Sunday or day on
which banking institutions in London, England are authorized or obligated by
law or government decree to be closed.]

          “Monthly Remittance Condition” has the
meaning set forth in Section 4.2 of the Sale and Servicing Agreement.

          “Moody’s” means Moody’s Investors
Service, Inc., or any successor that is a nationally recognized statistical
rating organization.

          “Net Pool Balance” means, as
of any date, the aggregate Outstanding Principal Balance of all Receivables of
the Issuer on such date.

          [“Net Swap Payment” means for the Interest
Rate Swap Agreement, the net amount with respect to regularly scheduled
payments, if any, owed by the Issuer to the Swap Counterparty on any Payment
Date, including prior unpaid Net Swap Payments and any interest accrued
thereon, under such Interest Rate Swap Agreement; provided, that “Net Swap
Payments” do not include Swap Termination Payments.]

          [“Net Swap Receipts” means, for the Interest
Rate Swap Agreement, the net amounts owed by the Swap Counterparty to the
Issuer, if any, on any Swap Payment Date, excluding any Swap Termination
Payments.]

          “Note”
means a Class A-1 Note, Class A-2 Note, Class A-3 Note, Class A-4 Note or Class
B Note, in each case substantially in the form of Exhibit A to the
Indenture.

          “Note Balance” means, with respect to any
date of determination, for any Class, the Class A-1 Note Balance, the Class A-2
Note Balance, the Class A-3 Note Balance, the Class A-4 Note Balance or the
Class B Note Balance, as applicable, or with respect to the Notes generally,
the sum of all of the foregoing.

          “Note Depository Agreement” means the
agreement, dated as of the Closing Date, between the Issuer and DTC, as the
initial Clearing Agency relating to the Notes, as the same may be amended or
supplemented from time to time.

          “Note Owner”
means, with respect to a Book-Entry Note, the Person who is the beneficial
owner of such Book-Entry Note, as reflected on the books of the Clearing Agency
or 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).

14

          “Note Register”
and “Note
Registrar” have the respective meanings set forth in Section 2.4
of the Indenture.

          “Noteholder”
means, as the context requires, all of the Class A-1 Noteholders, the Class A-2
Noteholders, the Class A-3 Noteholders, the Class A-4 Noteholders and the Class
B Noteholders, or any of the Class A-1 Noteholders, the Class A-2 Noteholders,
the Class A-3 Noteholders, the Class A-4 Noteholders or the Class B
Noteholders, or any of the foregoing.

          “Obligor”
means, for any Receivable, each Person obligated to pay such Receivable.

          “Officer’s Certificate” means (i) with
respect to the Issuer, a certificate signed by any Authorized Officer of the
Issuer and (ii) with respect to the Seller or the Servicer, a certificate
signed by the chairman of the board, the president, any executive vice
president, any vice president, the treasurer, any assistant treasurer or the
controller of the Seller or the Servicer, as applicable.

          “Opinion of Counsel”
means one or more written opinions of counsel who may, except as otherwise
expressly provided in the Indenture or any other applicable Transaction
Document, be employees of or counsel to the Issuer, the Servicer, the Seller or
the Administrator, and which opinion or opinions comply with any applicable
requirements of the Transaction Documents and are in form and substance
reasonably satisfactory to the recipient(s). Opinions of Counsel need address
matters of law only and may be based upon stated assumptions as to relevant
matters of fact.

          “Optional Purchase” has the
meaning set forth in Section 8.1 of the Sale and Servicing Agreement.

          “Optional Purchase Price” has the meaning
set forth in Section 8.1 of the Sale and Servicing Agreement.

          “Originator”
means, with respect to any Receivable, the Bank.

          “Other Assets” means
any assets (or interests therein) (other than the
Trust Estate) conveyed or purported to be conveyed by the Seller to another
Person or Persons other than the Issuer, whether by way of a sale, capital
contribution or by virtue of the granting of a lien.

          “Outstanding”
means, as of any date, all Notes (or all Notes of an applicable Class)
theretofore authenticated and delivered under the Indenture except:

          (i) Notes
(or Notes of an applicable Class) theretofore cancelled by the Note Registrar
or delivered to the Note Registrar for cancellation;

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

15

          (iii) Notes
(or Notes of an applicable Class) in exchange for or in lieu of other Notes (or
Notes of such Class) that have been authenticated and delivered pursuant to the
Indenture unless proof satisfactory to the Indenture Trustee is presented that
any such Notes are held by a bona fide purchaser;

provided, that in determining whether
Noteholders holding the requisite aggregate principal amount of Outstanding
Notes have given any request, demand, authorization, direction, notice,
consent, vote or waiver hereunder or under any Transaction Document, Notes
owned by the Issuer, Certificateholder or any of their respective Affiliates
shall be disregarded and deemed not to be Outstanding unless all of the Notes
are then owned by the Issuer, Certificateholder or any of their respective
Affiliates, except that, in determining whether the Indenture Trustee shall be
protected in relying upon any such request, demand, authorization, direction,
notice, consent, vote or waiver, only Notes that a Responsible Officer of the
Indenture Trustee knows to be so owned shall be so disregarded. Notes so owned
that have been pledged in good faith may be regarded as Outstanding if the
pledgee thereof establishes to the satisfaction of the Indenture Trustee such
pledgee’s right so to act with respect to such Notes and that such pledgee is
not the Issuer, Certificateholder or any of their respective Affiliates.

          “Outstanding Principal Balance”
means, with respect to any Receivable as of any date, the outstanding principal
balance of such Receivable calculated in accordance with the Customary
Servicing Practices; provided, however, that the Outstanding
Principal Balance of any Receivable that became a Defaulted Receivable will be
deemed to be zero as of the date it becomes a Defaulted Receivable.

          “Owner Trustee”
means [     ], a [     ], not
in its individual capacity but solely as owner trustee under the Trust
Agreement, and any successor Owner Trustee thereunder.

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

          “Payment Date” means the
[     ] day of each calendar month beginning
[          ],
20[     ] provided, however, whenever a Payment Date would otherwise be a day
that is not a Business Day, the Payment Date shall be the next Business Day. As
used herein, the “related” Payment Date with respect to a Collection Period
shall be deemed to be the Payment Date which immediately follows such
Collection Period.

          “Payment Default” has the
meaning set forth in Section 5.4(a) of the Indenture.

          “Permitted Investments” means (a) evidences of
indebtedness, maturing within thirty (30) days after the date of loan thereof,
issued by, or guaranteed by the full faith and credit of, the federal
government of the USA, (b) repurchase agreements with banking institutions or broker-dealers
registered under the Exchange Act which are fully secured by obligations of the
kind specified in clause (a) and which are accounted for as borrowings
(and not sales), (c) money market funds (i) rated not lower than the highest
rating category from Moody’s and “AAAm” or 

16

“AAAm-g” from Standard & Poor’s or (ii) which are otherwise
acceptable to each Rating Agency, as evidenced by a letter from such Rating
Agency to the Issuer or the Indenture Trustee, or (d) commercial paper
(including commercial paper of any Affiliate of the Seller, the Servicer, the
Indenture Trustee or the Owner Trustee) rated, at the time of the investment or
contractual commitment to invest therein, at least “A-1+” (or the equivalent)
by Standard & Poor’s and at least “P-1” (or the equivalent) by Moody’s.

          “Permitted
Liens” means (a) the interest
of the parties under the Transaction Documents, (b) any liens for taxes not due
and payable or the amount of which is being contested in good faith by
appropriate proceedings and (c) any liens of mechanics, suppliers, vendors,
materialmen, laborers, employees, repairmen and other like liens securing
obligations which are not due and payable or the amount or validity of which is
being contested in good faith by appropriate proceedings.

          “Person”
means any individual, corporation, limited liability company, estate,
partnership, joint venture, association, joint stock company, trust (including
any beneficiary thereof), unincorporated organization or government or any
agency or political subdivision thereof.

          “Physical Property” has the
meaning specified in the definition of “Delivery” above.

          “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; provided, however, for
the purpose of this definition, any Note authenticated and delivered under
Section 2.5 of the Indenture in lieu of a mutilated, destroyed, lost or
stolen Note shall be deemed to evidence the same debt as the mutilated,
destroyed, lost or stolen Note.

          “Principal Distribution Account” means the
account by that name established and maintained pursuant to Section 4.1
of the Sale and Servicing Agreement. 

          “Principal Factor” means,
with respect to the Notes or any Class of Notes on any Payment Date, a
nine-digit decimal figure equal to the Note Balance of the Notes or such Class
of Notes, as applicable, as of the end of the preceding Collection Period
divided by the Note Balance of the Notes or such Class of Notes, as applicable,
as of the Closing Date. The Principal Factor will be 1.000000000 as of the
Closing Date; thereafter, the Principal Factor will decline to reflect
reductions in the Note Balance of the Notes or such Class of Notes, as
applicable.

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

          “Purchase Agreement” means
the Purchase Agreement, dated as of the Closing Date, between the Bank and the
Seller, as amended, modified or supplemented from time to time.

          “Purchased
Assets” has the meaning set forth in Section 2.1 of the
Purchase Agreement.

          “Qualified
Institutional Buyer” means a “qualified institutional
buyer” as defined in Rule 144A under the Securities Act.

17

          “Rating Agency” means
either or each of [               ]
and [               ],
as indicated by the context. 

          “Rating Agency Condition”
means, with respect to any event or circumstance and each Rating Agency, either
(a) written confirmation (which may be in the form of a letter, press release
or other publication, or a change in such Rating Agency’s published ratings
criteria to this effect) by such Rating Agency that the occurrence of such
event or circumstance will not cause it to downgrade, qualify or withdraw its
rating assigned to any of the Notes or (b) that such Rating Agency shall have
been given notice of such event or circumstance at least ten days prior to the
occurrence of such event or circumstance (or, if ten days’ advance notice is
impracticable, as much advance notice as is practicable) and such Rating Agency
shall not have issued any written notice that the occurrence of such event or
circumstance will itself cause it to downgrade, qualify or withdraw its rating
assigned to the Notes. Notwithstanding the foregoing, no Rating Agency has any
duty to review any notice given with respect to any event, and it is understood
that such Rating Agency may not actually review notices received by it prior to
or after the expiration of the ten (10) day period described in (b)
above. Further, each Rating Agency retains the right to downgrade, qualify or
withdraw its rating assigned to all or any of the Notes at any time in its sole
judgment even if the Rating Agency Condition with respect to an event had been
previously satisfied pursuant to clause (a) or clause (b) above.

          “Realized
Losses” shall mean, for any Collection Period and for each
Receivable that became a Defaulted Receivable during such Collection Period,
the excess of the Outstanding Principal Balance of each such Receivable over
Liquidation Proceeds received with respect to such Receivable during such
Collection Period, to the extent allocable to principal.

          “Receivable”
means any retail motor vehicle installment loan with respect to a new or used
automobile or light-duty truck which shall appear on the Schedule of
Receivables and all Related Security in connection therewith which has not been
released from the lien of the Indenture.

          “Receivable Files”
has the meaning set forth in Section 2.4(a) of the Sale and Servicing
Agreement.

          “Record Date”
means, unless otherwise specified in any Transaction Document, with respect to
any Payment Date or Redemption Date, (i) for any Definitive Notes and for the
Certificates, the close of business on the last Business Day of the calendar
month immediately preceding the calendar month in which such Payment Date or
Redemption Date occurs and (ii) for any Book-Entry Notes, the close of business
on the Business Day immediately preceding such Payment Date or Redemption Date.

          “Records”
means, for any Receivable, all contracts, books, records and other documents or
information (including computer programs, tapes, disks, software and related
property and rights, to the extent legally transferable) relating to such
Receivable or the related Obligor.

          “Recoveries”
shall mean, with respect to any Collection Period, all amounts received by the
Servicer with respect to any Defaulted Receivable during any Collection Period
following the Collection Period in which such Receivable became a Defaulted
Receivable, net of any fees, 

18

costs and expenses incurred by the Servicer in connection with the
collection of such Receivable and any payments required by law to be remitted
to the Obligor.

          “Redemption Date”
means, in the case of a redemption of the Notes pursuant to Section 10.1
of the Indenture, the Payment Date specified by the Administrator or the Issuer
pursuant to Section 10.1 of the Indenture.

          “Redemption Price”
means an amount equal to the sum of (a) unpaid principal amount of the Notes
redeemed plus
(b) accrued and unpaid interest thereon at the applicable Interest Rate for the
Notes being so redeemed, up to but excluding the Redemption Date [plus (c)
all amounts owing to the Swap Counterparty as of the Redemption Date]. 

          “Registered Holder”
means the Person in whose name a Note is registered on the Note Register on the
related Record Date.

          “Regular
Allocation of Principal” means, with respect to any Payment Date, an
amount equal to the lesser of (i) the Note Balance of the Notes on as of such
Payment Date (before giving effect to any principal payments made on the Notes
on such Payment Date) and (ii) an amount equal to the excess of: (A) (x) the
Note Balance of the Notes as of such Payment Date (before giving effect to any
payments made on the Notes as of such Payment Date); minus (y) the sum of the First
Allocation of Principal and the Second Allocation of Principal, if any, in each
case for such Payment Date; over (B) the Net Pool Balance as of the end of the
related Collection Period less the Targeted Overcollateralization Amount.

          “Regulation
AB” means Subpart 229.1100 – Asset Backed Securities (Regulation
AB), 17 C.F.R. §§229.1100-229.1123, as such regulation may be amended from time
to time and subject to such clarification and interpretation as have been
provided by the Commission in the adopting release (Asset-Backed Securities,
Securities Act Release No. 33-8518. 70 Fed. Reg. 1,506, 1,531 (January 7,
2005)) or by the staff of the Commission, or as may be, provided in writing by
the Commission or its staff from time to time.

          “Related Security”
means, for any Receivable, (i) the security interest in the related Financed
Vehicle, (ii) any proceeds from claims on any Insurance Policy (if such
Receivable became a Defaulted Receivable after the Cut-Off Date), (iii) any
other property securing the Receivables and (iv) all proceeds of the foregoing.

          [“Replacement Interest Rate Swap Agreement”
means any ISDA Master Agreement, dated after the Closing Date, between the
Replacement Swap Counterparty and the Issuer, the Schedule and Credit Support
Annex thereto, dated after the Closing Date, and the Confirmations thereto,
each dated after the Closing Date, and entered into pursuant to such ISDA
Master Agreement, and pursuant to the conditions set forth in the Initial
Interest Rate Swap Agreement, as the same may be amended or supplemented from
time to time in accordance with the terms thereof.]

          [“Replacement Swap Counterparty” means, with
respect to any Swap Counterparty, any replacement Swap Counterparty under a
Replacement Interest Rate Swap Agreement that satisfies the conditions set
forth in the Interest Rate Swap Agreement.]

19

          “Reportable
Event” means any event required to be reported on Form 8-K, and in
any event, the following:

          (a) entry
into a material definitive agreement related to the Issuer, the Notes or the
Receivables or an amendment to a Transaction Document, even if the Seller is
not a party to such agreement (e.g., a servicing agreement with a servicer
contemplated by Item 1108(a)(3) of Regulation AB);

          (b)
termination of a Transaction Document (other than by expiration of the
agreement on its stated termination date or as a result of all parties
completing their obligations under such agreement), even if the Seller is not a
party to such agreement (e.g., a servicing agreement with a servicer
contemplated by Item 1108(a)(3) of Regulation AB);

          (c) with
respect to the Servicer only, the occurrence of a Servicer Replacement Event;

          (d) an
Event of Default;

          (e) the
resignation, removal, replacement or substitution of the Indenture Trustee or
the Owner Trustee; and

          (f) with respect to the Indenture Trustee only, a
required distribution to Holders of the Notes is not made as of the required
Payment Date under the Indenture.

          “Repurchase Price” means,
with respect to any Repurchased Receivable, a price equal to the Outstanding
Principal Balance of such Receivable plus any unpaid accrued interest related
to such Receivable accrued to and including the end of the Collection Period
preceding the date that such Repurchased Receivable was purchased by the Bank,
the Servicer or the Seller, as applicable.

          “Repurchased Receivable”
means a Receivable purchased by the Bank pursuant to Section 3.3 of the
Purchase Agreement, by the Servicer pursuant to Sections 3.6 and 8.1
of the Sale and Servicing Agreement or by the Seller pursuant to Section 2.3
of the Sale and Servicing Agreement.

          “Reserve Account”
means the account designated as such, established and maintained pursuant to Section
4.1 of the Sale and Servicing Agreement.

          “Reserve Account Draw
Amount” means, for any Payment Date, the amount withdrawn from the
Reserve Account, equal to the lesser of (a) the sum of (i) the Available Funds
Shortfall Amount, if any, and (ii) the Yield Supplement Account Draw Amount or
(b) the amount on deposit in the Reserve Account on such Payment Date.

          “Reserve Account Excess Amount”
means, with respect to any Payment Date, an amount equal to the excess, if any,
of (a) the amount of cash or other immediately available funds in the Reserve
Account on that Payment Date, after giving effect to all deposits to and
withdrawals from the Reserve Account relating to that Payment Date, over (b)
the Specified Reserve Account Balance with respect to that Payment Date.

20

          “Responsible Officer”
means, (a) with respect to the Indenture Trustee, any officer within the
corporate trust department of the Indenture Trustee, including any vice
president, assistant vice president, assistant secretary, assistant treasurer,
trust officer or any other officer of the Indenture Trustee who customarily
performs functions similar to those performed by the persons who at the time
shall be such officers, respectively, or to whom any corporate trust matter is
referred because of such person’s knowledge of and familiarity with the
particular subject, and who, in each case, shall have direct responsibility for
the administration of the Indenture, (b) with respect to the Owner Trustee, any
officer within the Corporate Trust Office of the Owner Trustee and having
direct responsibility for the administration of the Issuer, including any
Managing Director, Director, Vice President, Assistant Vice President, Assistant
Treasurer, Assistant Secretary or Associate, or any other officer customarily
performing functions similar to those performed by any of the above designated
officers and also, with respect to a particular matter, any other officer to
whom such matter is referred because of such officer’s knowledge of and
familiarity with the particular subject and (c) with respect to the Servicer,
the Seller or the Administrator, any officer of such Person having direct
responsibility for the transactions contemplated by the Transaction Documents,
including the President, Treasurer or Secretary or any Vice President,
Controller, Assistant Vice President, Assistant Treasurer, Assistant Secretary,
or any other officer customarily performing functions similar to those performed
by any of the above designated officers and also, with respect to a particular
matter, any other officer to whom such matter is referred because of such
officer’s knowledge of and familiarity with the particular subject.

          “Sale and Servicing Agreement”
means the Sale and Servicing Agreement, dated as of the Closing Date, among the
Seller, the Issuer, the Servicer and the Indenture Trustee, as the same may be
amended, modified or supplemented from time to time. 

          “Sarbanes
Certification” has the meaning set forth in Section 9.21(b)(iii)
of the Sale and Servicing Agreement.

          “Sarbanes-Oxley Act” means the
Sarbanes-Oxley Act of 2002, as amended, modified or supplemented from time to
time, and any successor law thereto.

          “Schedule of Receivables”
means the schedule of Receivables transferred to the Issuer on the Closing
Date.

          “Second
Allocation of Principal” means, with respect to any Payment Date, an
amount equal to the excess, if any, of (a) the sum of the Note Balance of the
Class A Notes and the Class B Notes (before giving effect to any principal
payments made on the Notes on such Payment Date) minus the First Allocation of
Principal for such Payment Date, over (b) the Net Pool Balance as of the end of
the related Collection Period; provided, however, that the Second
Allocation of Principal for any Payment Date on and after the Final Scheduled
Payment Date for the Class A Notes or the Class B Notes shall not be less than
the amount that is necessary to reduce the Class A Note Balance or the Class B
Note Balance, as applicable, to zero (after the application of the First
Allocation of Principal).

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

21

          “Seller” means USAA Acceptance,
LLC, a Delaware limited liability company.

          [“Senior Swap
Termination Payment” means any Swap Termination Payment owed by the
Issuer to the Swap Counterparty under an Interest Rate Swap Agreement arising
due to (1) the failure of the Issuer to make Net Swap Payments due under that
Interest Rate Swap Agreement, (2) illegality of performance under the Interest
Rate Swap Agreement or (3) the occurrence of bankruptcy or insolvency events
with respect to the Issuer.]

          “Servicer” means the Bank,
initially, and any replacement Servicer appointed pursuant to the Sale and
Servicing Agreement.

          “Servicer Replacement
Event” means any one or more of the following that shall have
occurred and be continuing:

          (a) any
failure by the Servicer to deliver or cause to be delivered any required
payment to the Indenture Trustee for distribution to the Noteholders, which
failure continues unremedied for five Business Days after discovery thereof by
a Responsible Officer of the Servicer or receipt by the Servicer of written
notice thereof from the Indenture Trustee or Noteholders evidencing a majority
of the aggregate principal amount of the Outstanding Notes, voting together as
a single Class;

          (b) any
failure by the Servicer to duly observe or perform in any material respect any
other of its covenants or agreements in the Sale and Servicing Agreement, which
failure materially and adversely affects the rights of the Issuer or the
Noteholders, and which continues unremedied for 90 days after discovery thereof
by a Responsible Officer of the Servicer or receipt by the Servicer of written
notice thereof from the Indenture Trustee or Noteholders evidencing a majority
of the aggregate principal amount of the Outstanding Notes, voting together as
a single Class (it being understood that no Servicer Replacement Event will
result from a breach by the Servicer of any covenant for which the repurchase
of the affected Receivable is specified as the sole remedy pursuant to Section
2.3 or Section 3.6 of the Sale and Servicing Agreement);

          (c) any
representation or warranty of the Servicer made in any Transaction Document to
which the Servicer is a party or by which it is bound or any certificate
delivered pursuant to the Sale and Servicing Agreement proves to have been
incorrect in any material respect when made, which failure materially and
adversely affects the rights of the Issuer or the Noteholders, and which
failure continues unremedied for 90 days after discovery thereof by a Responsible
Officer of the Servicer or receipt by the Servicer of written notice thereof
from the Indenture Trustee or Noteholders evidencing a majority of the
aggregate principal amount of the Outstanding Notes, voting together as a
single Class (it being understood that any repurchase of a Receivable by the
Bank pursuant to Section 3.3 of the Purchase Agreement, by the Seller
pursuant to Section 2.3 of the Sale and Servicing Agreement or by the
Servicer pursuant to Section 3.6 of the Sale and Servicing Agreement shall
be deemed to remedy any incorrect representation or warranty with respect to
such Receivable); or

          (d) the
Servicer suffers a Insolvency Event;

22

 provided, however, that a delay or failure of
performance referred to under clause (a) above for a period of 90 days
will not constitute a Servicer Replacement Event if such delay or failure was
caused by force majeure or other similar occurrence as certified by the
Servicer in an Officer’s Certificate of the Servicer delivered to the Indenture
Trustee.

          The
existence or occurrence of any “material instance of noncompliance” (within the
meaning of Item 1122 of Regulation AB) shall not create any presumption that
any event in clauses (a), (b) or (c) above has occurred.

          “Servicer’s Certificate”
means the certificate delivered pursuant to Section 3.8 of the Sale and
Servicing Agreement.

          “Servicing
Criteria” means the “servicing criteria” set forth in Item 1122(d)
of Regulation AB.

          “Servicing Fee” means, for any Payment
Date, the product of (A) one-twelfth (or, in the case of the first Payment
Date, a fraction, the numerator of which is the number of days from but not
including the Cut-Off Date to and including the last day of the first
Collection Period and the denominator of which is 360), (B) the Servicing Fee
Rate and (C) the Net Pool Balance as of the first day of the related Collection
Period (or, in the case of the first Payment Date, as of the Cut-Off Date).

          “Servicing Fee Rate” means
[  ]% per annum.

          “Similar Law”
means any federal, state, local or other law that is substantially similar to
Section 406 of ERISA or Section 4975 of the Code.

          “Simple Interest Method”
means the method of calculating interest due on a motor vehicle receivable on a
daily basis based on the actual outstanding principal balance of the receivable
on that date.

          “Simple Interest Receivable”
means any motor vehicle receivable pursuant to which the payments due from the
Obligors during any month are allocated between interest, principal and other
charges based on the actual date on which a payment is received and for which
interest is calculated using the Simple Interest Method.

          “Specified Reserve
Account Balance” shall mean [     ]% of the
Net Pool Balance as of the Cut-Off Date; provided, however, on any Payment Date
after the Notes are no longer Outstanding following payment in full of the
principal and interest on the Notes, the “Specified Reserve Account Balance”
shall be $[   ].

          “Standard & Poor’s”
means Standard & Poor’s Ratings Services, a Standard and Poor’s Financial
Services LLC business, or any successor that is a nationally recognized
statistical rating organization.

          “Statutory Trust Statute” means Chapter 38 of
Title 12 of the Delaware Code, 12 Del. Code § 3801 et seq.

23

          [“Subordinated
Swap Termination Payment” means any Swap Termination Payment owed by
the Issuer to the Swap Counterparty under an Interest Rate Swap Agreement other
than a Senior Swap Termination Payment.]

          “Sub-Servicer” means any Affiliate of the
Servicer or any sub-contractor to whom any or all duties of the Servicer
(including, without limitation, its duties as custodian) under the Transaction
Documents have been delegated in accordance with Section 6.5 of the Sale
and Servicing Agreement.

          “Supplemental Servicing
Fees” means any and all (i) late fees, (ii) extension fees, (iii)
non-sufficient funds charges and (iv) any and all other administrative fees or
similar charges allowed by applicable law with respect to any Receivable.

          [“Swap Collateral Account” means a single,
segregated trust account in the name of the Indenture Trustee, which shall be
designated as the “Swap Collateral Account” which shall be held in trust for
the benefit of the Noteholders established pursuant to Section 4.8(e) of
the Sale and Servicing Agreement.]

          [“Swap
Counterparty” means the Initial Swap Counterparty and any
Replacement Swap Counterparty.]

          [“Swap Payment Date” means the date on which
Net Swap Receipts or Net Swap Payments, as applicable, are made pursuant to the
Interest Rate Swap Agreement.]

          [“Swap Replacement Proceeds” means any
amounts received from a Replacement Swap Counterparty in consideration for
entering into a Replacement Interest Rate Swap Agreement for a terminated
Interest Rate Swap Agreement.]

          [“Swap Termination Payment” means any
payment due to the Swap Counterparty by the Issuer or to the Issuer by the Swap
Counterparty, including interest that may accrue thereon, under the Interest
Rate Swap Agreement due to a termination of the Interest Rate Swap Agreement
due to an “event of default” or “termination event” under the Interest Rate
Swap Agreement.]

          [“Swap Termination Payment Account” means an
Eligible Account held in the United States in the name of the Indenture Trustee
which shall be held in trust for the benefit of the Noteholders and the Swap
Counterparty pursuant to Section 4.8(b) of the Sale and Servicing
Agreement.] 

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

          “Targeted
Overcollateralization Amount” means, with respect to any Payment
Date, the greater of (a) [ ]% of the Net Pool Balance on such Payment Date,
less the Specified Reserve Account Balance and (b) [ ]% of the Net Pool Balance
as of the Cut-Off Date. Notwithstanding the foregoing, the Targeted
Overcollateralization Amount shall not exceed the Net Pool Balance on such
Payment Date.

24

          “Transaction Documents” means the Indenture, the
Notes, the Note Depository Agreement, the Sale and Servicing Agreement, the
Purchase Agreement, the Administration Agreement[, the Interest Rate Swap
Agreement] and the Trust Agreement, as the same may be amended or modified from
time to time.

          “Transferred
Assets” means (a) the Purchased Assets, (b) all of the Seller’s
rights under the Purchase Agreement and (c) all proceeds of the foregoing.

          “Trust Account Property”
means the Trust Accounts, all amounts and investments held from time to time in
any Trust Account (whether in the form of deposit accounts, Physical Property,
book-entry securities, uncertificated securities or otherwise), and all
proceeds of the foregoing.

          “Trust Accounts” has the
meaning set forth in Section 4.1 of
the Sale and Servicing Agreement.

          “Trust Agreement”
means the Trust Agreement, dated as of
[          ], 20[     ],
as amended and restated by the Amended and Restated Trust Agreement, dated as
of the Closing Date, between the Seller and the Owner Trustee, as the same may
be amended and supplemented from time to time.

          “Trust Estate” means all money, accounts,
chattel paper, general intangibles, goods, instruments, investment property and
other property of the Issuer, including without limitation (i) the Receivables
acquired by the Issuer under the Sale and Servicing Agreement, the Related
Security relating thereto and Collections thereon on or after the Cut-Off Date,
(ii) the Receivable Files, (iii) the rights of the Issuer to the funds on
deposit from time to time in the Trust Accounts and any other account or
accounts established pursuant to the Indenture or Sale and Servicing Agreement
and all cash, investment property and other property from time to time credited
thereto and all proceeds thereof (including investment earnings, net of losses
and investment expenses, on amounts on deposit therein), (iv) the rights of the
Seller, as buyer, under the Purchase Agreement, (v) the rights of the Issuer
under the Sale and Servicing Agreement, the Administration Agreement [and the
Interest Rate Swap Agreement] and (vi) all proceeds (as defined in 9-102(64) of
the UCC) of the foregoing.

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

          “United States”
or “USA” means the United States
of America (including all states, the District of Columbia and political
subdivisions thereof).

          “USAA Parties”
means, collectively, the Bank, the Depositor and the Issuer.

          “Yield
Supplement Account” means the account designated as such, established
and maintained pursuant to Section 4.1 of the Sale and Servicing
Agreement.

          “Yield
Supplement Account Amount” means, with respect to any
Payment Date, the amount listed below for the Payment Date:

25

	
  

 	
  

 	
  

 
	
 Payment Date

 	
  

 	
 Yield Supplement Account Amount

 
	

 

 	
  

 	

 

 
	
 Closing Date

 	
  

 	
 $[                         ]

 
	
 [               ]

 	
  

 	
 $[                         ]

 
	
 [               ]

 	
  

 	
 $[                         ]

 

          “Yield
Supplement Account Draw Amount” means, for any Payment
Date, the amount equal to the excess of (i) the amount on deposit in the Yield
Supplement Account over (ii) the Yield Supplement Account Amount for such
Payment Date.

26

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}]]