Document:

Exhibit 4.1

Execution Copy

 

 

 

INDENTURE

 

 

Dated as of May 29, 2003

 

 

between

 

HOUSEHOLD AUTOMOTIVE TRUST 2003-1

Issuer

 

and

 

U.S. BANK NATIONAL ASSOCIATION

Indenture Trustee

 

 

 

TABLE OF CONTENTS

 

	

  ARTICLE I. Definitions and Incorporation by

  Reference

  
	

   

  
	

  SECTION 1.1

  	

  Definitions

  
	

  SECTION 1.2

  	

  Incorporation

  by Reference of the Trust Indenture Act

  
	

  SECTION 1.3

  	

  Rules

  of Construction

  
	

  SECTION 1.4

  	

  Action

  by or Consent of Noteholders and Certificateholders

  
	

  SECTION 1.5

  	

  Conflict

  with TIA

  
	

   

  
	

  ARTICLE II. The Notes

  
	

   

  
	

  SECTION 2.1

  	

  Form; Amount Limited; Issuable in Series

  
	

  SECTION 2.2

  	

  Execution, Authentication and Delivery

  
	

  SECTION 2.3

  	

  Temporary

  Notes

  
	

  SECTION 2.4

  	

  Registration;

  Registration of Transfer and Exchange

  
	

  SECTION 2.5

  	

  Mutilated,

  Destroyed, Lost or Stolen Notes

  
	

  SECTION 2.6

  	

  Persons

  Deemed Owner

  
	

  SECTION 2.7

  	

  Payment

  of Principal and Interest; Defaulted Interest

  
	

  SECTION 2.8

  	

  Cancellation

  
	

  SECTION 2.9

  	

  Reserved

  
	

  SECTION 2.10

  	

  Book-Entry

  Notes

  
	

  SECTION 2.11

  	

  Notices

  to Clearing Agency

  
	

  SECTION 2.12

  	

  Definitive

  Notes

  
	

  SECTION 2.13

  	

  Final

  Distribution

  
	

   

  
	

  ARTICLE

  III. Covenants

  
	

   

  
	

  SECTION 3.1

  	

  Payment

  of Principal and Interest

  
	

  SECTION 3.2

  	

  Maintenance

  of Office or Agency

  
	

  SECTION 3.3

  	

  Money

  for Payments to be Held in Trust

  
	

  SECTION 3.4

  	

  Existence

  
	

  SECTION 3.5

  	

  Protection

  of Series Trust Estate

  
	

  SECTION 3.6

  	

  Opinions

  as to Series Trust Estate

  
	

  SECTION 3.7

  	

  Performance

  of Obligations; Servicing of Receivables

  
	

  SECTION 3.8

  	

  Negative

  Covenants

  
	

  SECTION 3.9

  	

  Annual

  Statement as to Compliance

  
	

  SECTION 3.10

  	

  Issuer

  May Consolidate, Etc. Only on Certain Terms

  
	

  SECTION 3.11

  	

  Successor

  or Transferee

  
	

  SECTION 3.12

  	

  No

  Other Business

  
	

  SECTION 3.13

  	

  No

  Borrowing

  
	

  SECTION 3.14

  	

  Master

  Servicer’s Obligations

  
	

  SECTION 3.15

  	

  Guarantees,

  Loans, Advances and Other Liabilities

  
	

  SECTION 3.16

  	

  Capital

  Expenditures

  
	

  SECTION 3.17

  	

  Compliance

  with Laws

  
	

  SECTION 3.18

  	

  Restricted

  Payments

  
	

  SECTION 3.19

  	

  Notice

  of Events of Default

  
	

  SECTION 3.20

  	

  Further

  Instruments and Acts

  
	

  SECTION 3.21

  	

  Amendments

  of Master Sale and Servicing Agreement and Trust Agreement

  
	

  SECTION 3.22

  	

  Income

  Tax Characterization

  

 

i

 

	

  ARTICLE IV. Satisfaction and Discharge

  
	

   

  
	

  SECTION 4.1

  	

  Satisfaction

  and Discharge of Indenture

  
	

  SECTION 4.2

  	

  Application

  of Trust Money

  
	

  SECTION 4.3

  	

  Repayment

  of Monies Held by Note Paying Agent

  
	

   

  
	

  ARTICLE V. Remedies 

  
	

   

  
	

  SECTION 5.1

  	

  Events

  of Default

  
	

  SECTION 5.2

  	

  Collection

  of Indebtedness and Suits for Enforcement by Indenture Trustee

  
	

  SECTION 5.3

  	

  Limitation

  of Suits

  
	

  SECTION 5.4

  	

  Unconditional

  Rights of Noteholders To Receive Principal and Interest

  
	

  SECTION 5.5

  	

  Restoration

  of Rights and Remedies

  
	

  SECTION 5.6

  	

  Rights

  and Remedies Cumulative

  
	

  SECTION 5.7

  	

  Delay

  or Omission Not a Waiver

  
	

  SECTION 5.8

  	

  Limitation

  on Voting of Preferred Stock; Control by Insurer/Noteholders

  
	

  SECTION 5.9

  	

  Waiver

  of Past Defaults

  
	

  SECTION 5.10

  	

  Undertaking

  for Costs

  
	

  SECTION 5.11

  	

  Waiver

  of Stay or Extension Laws

  
	

  SECTION 5.12

  	

  Action

  on Notes

  
	

  SECTION 5.13

  	

  Performance

  and Enforcement of Certain Obligations

  
	

   

  
	

  ARTICLE VI. The Indenture Trustee

  
	

   

  
	

  SECTION 6.1

  	

  Duties

  of Indenture Trustee

  
	

  SECTION 6.2

  	

  Rights

  of Indenture Trustee

  
	

  SECTION 6.3

  	

  Individual

  Rights of Indenture Trustee

  
	

  SECTION 6.4

  	

  Indenture

  Trustee’s Disclaimer

  
	

  SECTION 6.5

  	

  Notice

  of Defaults

  
	

  SECTION 6.6

  	

  Reports

  by Master Servicer to Holders

  
	

  SECTION 6.7

  	

  Compensation

  and Indemnity

  
	

  SECTION 6.8

  	

  Replacement

  of Indenture Trustee

  
	

  SECTION 6.9

  	

  Successor

  Indenture Trustee by Merger

  
	

  SECTION 6.10

  	

  Appointment

  of Co-Indenture Trustee or Separate Indenture Trustee

  
	

  SECTION 6.11

  	

  Eligibility:

  Disqualification

  
	

  SECTION 6.12

  	

  Preferential

  Collection of Claims Against Issuer

  
	

  SECTION 6.13

  	

  Representations

  and Warranties of the Indenture Trustee

  
	

  SECTION 6.14

  	

  Waiver

  of Setoffs

  
	

  SECTION 6.15

  	

  No

  Consent to Certain Acts of Seller

  
	

   

  
	

  ARTICLE

  VII. Noteholders’ Lists and Reports

  
	

   

  
	

  SECTION 7.1

  	

  Issuer

  To Furnish To Indenture Trustee Names and Addresses of Noteholders

  
	

  SECTION 7.2

  	

  Preservation

  of Information; Communications to Noteholders

  
	

  SECTION 7.3

  	

  Reports

  by Issuer

  
	

  SECTION 7.4

  	

  Reports

  by Indenture Trustee

  

 

ii

 

	

  ARTICLE

  VIII. Accounts, Disbursements and Releases

  
	

   

  
	

  SECTION 8.1

  	

  Collection

  of Money

  
	

  SECTION 8.2

  	

  Release

  of Series Trust Estate

  
	

  SECTION 8.3

  	

  Opinion

  of Counsel

  
	

   

  	

   

  
	

  ARTICLE IX. Amendments; the Series

  Supplement

  
	

   

  
	

  SECTION 9.1

  	

  Amendments

  Without Consent of Noteholders

  
	

  SECTION 9.2

  	

  Amendments

  With Consent of Noteholders

  
	

  SECTION 9.3

  	

  Series

  Supplement Authorizing the Notes

  
	

  SECTION 9.4

  	

  Execution

  of the Series Supplement

  
	

  SECTION 9.5

  	

  Effect

  of Series Supplement

  
	

  SECTION 9.6

  	

  Conformity

  With Trust Indenture Act

  
	

  SECTION 9.7

  	

  Reference

  in Notes to the Series Supplement

  
	

   

  
	

  ARTICLE X.

  
	

   

  
	

  SECTION 10.1

  	

  Note

  Insurer’s Rights Regarding Actions, Proceedings or Investigations.

  
	

   

  
	

  ARTICLE XI. Miscellaneous

  
	

   

  
	

  SECTION 11.1

  	

  Compliance

  Certificates and Opinions, etc.

  
	

  SECTION 11.2

  	

  Form

  of Documents Delivered to Indenture Trustee

  
	

  SECTION 11.3

  	

  Acts

  of Noteholders

  
	

  SECTION 11.4

  	

  Notices,

  etc., to Indenture Trustee, Issuer and Rating Agencies

  
	

  SECTION 11.5

  	

  Notices

  to Noteholders; Waiver

  
	

  SECTION 11.6

  	

  Alternate

  Payment and Notice Provisions

  
	

  SECTION 11.7

  	

  Conflict

  with Trust Indenture Act

  
	

  SECTION 11.8

  	

  Effect

  of Headings and Table of Contents

  
	

  SECTION 11.9

  	

  Successors

  and Assigns

  
	

  SECTION 11.10

  	

  Separability

  
	

  SECTION 11.11

  	

  Benefits

  of Indenture

  
	

  SECTION 11.12

  	

  Legal

  Holidays

  
	

  SECTION 11.13

  	

  GOVERNING

  LAW

  
	

  SECTION 11.14

  	

  Counterparts

  
	

  SECTION 11.15

  	

  Recording

  of Indenture

  
	

  SECTION 11.16

  	

  Trust

  Obligation

  
	

  SECTION 11.17

  	

  No

  Petition

  
	

  SECTION 11.18

  	

  Limited

  Recourse.

  
	

  SECTION 11.19

  	

  Inspection

  
	

  SECTION 11.20

  	

  Limitation

  of Liability

  
	

   

  
	

  EXHIBIT A —  Form of Transferee Certificate

  

 

iii

 

INDENTURE dated as of May

29, 2003, between HOUSEHOLD AUTOMOTIVE TRUST 2003-1, a Delaware statutory trust

(the “Issuer”) and U.S. BANK NATIONAL ASSOCIATION, a national banking

association, as indenture trustee (the “Indenture Trustee”).

 

In consideration of the mutual agreements contained

herein, and of other good and valuable consideration the receipt and adequacy

of which are hereby acknowledged, the parties agree as follows:

 

GRANTING CLAUSE

 

In order to secure the due and punctual payment of the

principal of and interest on the Notes when and as the same shall become due

and payable, whether as scheduled, by declaration of acceleration, prepayment

or otherwise, and all amounts payable to the Insurer according to the terms of

this Indenture, the Series Supplement, the Notes and the Insurance Agreement,

the Issuer, pursuant to the Series Supplement, shall pledge the Series Trust

Estate to the Indenture Trustee, all for the benefit of the Indenture Trustee

for the benefit of the Secured Parties.

 

ARTICLE I.

 

Definitions and Incorporation by Reference

 

SECTION 1.1                          Definitions.  Except as otherwise specified herein, the

following terms have the respective meanings set forth below for all purposes

of this Indenture.

 

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

 

“Authorized Officer” means, with respect to the Issuer

and the Master Servicer, any officer or agent acting pursuant to a power of

attorney of the Owner Trustee or the Master Servicer, as applicable, who is

authorized to act for the Owner Trustee or the Master Servicer, as applicable,

in matters relating to the Issuer and who is identified on the list of

Authorized Officers delivered by each of the Owner Trustee and the Master

Servicer to the Indenture Trustee on the Closing Date (as such list may be

modified or supplemented from time to time thereafter).

 

“Book Entry Notes” means any beneficial interest in

the Notes, ownership and transfers of which shall be made through book entries

by a Clearing Agency as described in Section 2.10.

 

“Class” means all of the Notes having the same

specified payment terms and priority of payment.

 

“Class SV Preferred Stock” means the preferred stock

of the Seller.

 

“Clearing Agency” means an organization registered as

a “clearing agency” pursuant to Section 17A of the Exchange Act.

 

1

 

“Clearing Agency Participant” means a broker, dealer,

bank, other financial institution or other Person for whom from time to time a

Clearing Agency effects book-entry transfers and pledges of securities

deposited with the Clearing Agency.

 

“Code” means the Internal Revenue Code of 1986, as

amended from time to time, and Treasury Regulations promulgated thereunder.

 

“Corporate Trust Office” has the meaning assigned to

such term in the Series Supplement.

 

“Default” means any occurrence that is, or with notice

or the lapse of time or both would become, an Event of Default.

 

“Definitive Notes” has the meaning specified in

Section 2.10.

 

“Event of Default” has the meaning specified in

Section 5.1.

 

“Exchange Act” means the Securities Exchange Act of

1934, as amended.

 

“Executive Officer” means, with respect to any

corporation, the Chief Executive Officer, Chief Operating Officer, Chief

Financial Officer, President, Executive Vice President, any Vice President, the

Secretary, the Treasurer, or any Assistant Treasurer of such corporation.

 

“Grant” means mortgage, pledge, bargain, sell,

warrant, alienate, remise, release, convey, assign, transfer, create, grant a

lien upon and a security interest in and right of set-off against, deposit, set

over and confirm pursuant to this Indenture. 

A Grant of the Series Trust Estate or of any other agreement or

instrument shall include all rights, powers and options (but none of the

obligations) of the granting party thereunder, including the immediate and

continuing right to claim for, collect, receive and give receipt for principal

and interest payments in respect of the Series Trust Estate and all other

monies payable thereunder, to give and receive notices and other

communications, to make waivers or other agreements, to exercise all rights and

options, to bring proceedings in the name of the granting party or otherwise

and generally to do and receive anything that the granting party is or may be

entitled to do or receive thereunder or with respect thereto.

 

“Holder” or “Noteholder” means the Person in whose

name a Note is registered on the Note Register.

 

“Indebtedness” means, with respect to any Person at

any time, (a) indebtedness or liability of such Person for borrowed money

whether or not evidenced by bonds, debentures, notes or other instruments, or

for the deferred purchase price of property or services (including trade

obligations); (b) obligations of such Person as lessee under leases which

should have been or should be, in accordance with generally accepted accounting

principles, recorded as capital leases; (c) current liabilities of such Person

in respect of unfunded vested benefits under plans covered by Title IV of

ERISA; (d) obligations issued for or liabilities incurred on the account of

such Person; (e) obligations

 

2

 

or liabilities of such Person arising under acceptance

facilities; (f) obligations of such Person under any guarantees, endorsements

(other than for collection or deposit in the ordinary course of business) and

other contingent obligations to purchase, to provide funds for payment, to

supply funds to invest in any Person or otherwise to assure a creditor against

loss; (g) obligations of such Person secured by any lien on property or assets

of such Person, whether or not the obligations have been assumed by such

Person; or (h) obligations of such Person under any interest rate or currency

exchange agreement.

 

“Indenture Trustee” means, initially, U.S. Bank National

Association, a national banking association, not in its individual capacity but

as trustee under this Indenture, or any successor trustee under this Indenture.

 

“Indenture Trustee Fee” means the fees due to the

Indenture Trustee, as may be set forth in that certain fee letter, dated as of

the date hereof between the Master Servicer and the Indenture Trustee.

 

“Independent” means, when used with respect to any

specified Person, that the person (a) is in fact independent of the Issuer, any

other obligor upon the Notes, the Seller and any Affiliate of any of the

foregoing persons, (b) does not have any direct financial interest or any

material indirect financial interest in the Issuer, any such other obligor, the

Seller or any Affiliate of any of the foregoing Persons and (c) is not

connected with the Issuer, any such other obligor, the Seller or any Affiliate

of any of the foregoing Persons as an officer, employee, promoter, underwriter,

trustee, partner, director or Person performing similar functions.

 

“Independent Certificate” means a certificate or

opinion to be delivered to the Indenture Trustee under the circumstances

described in, and otherwise complying with, the applicable requirements of

Section 11.1, prepared by an Independent appraiser or other expert appointed

pursuant to an Issuer Order and approved by the Indenture Trustee in the

exercise of reasonable care, and such opinion or certificate shall state that

the signer has read the definition of “Independent” in this Indenture and that

the signer is Independent within the meaning thereof.

 

“Insurer” has the meaning assigned to such term in the

Series Supplement.

 

“Issuer Order” and “Issuer Request” means a written

order or request signed in the name of the Issuer by any one of its Authorized

Officers and delivered to the Indenture Trustee.

 

“Master Sale and Servicing Agreement” has the meaning

assigned to such term in the Series Supplement.

 

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

its successor.

 

“Notes” means the Notes authenticated and delivered

under this Indenture.

 

“Note Owner” means, with respect to a Book-Entry Note,

the person who is the owner of such Book-Entry Note, as reflected on the books

of the Clearing Agency,

 

3

 

or on the books of a Person maintaining an account

with such Clearing Agency (directly as a Clearing Agency Participant or as an

indirect participant, in each case in accordance with the rules of such

Clearing Agency).

 

“Note Paying Agent” means the Indenture Trustee or any

other Person that meets the eligibility standards for the Indenture Trustee

specified in Section 6.11 and is authorized by the Issuer to make payments to

and distributions from the Collection Account, including payment of principal

of or interest on the Notes on behalf of the Issuer.

 

“Note Register” and “Note Registrar” have the

respective meanings specified in Section 2.4.

 

“Officer’s Certificate” means a certificate signed by

any Authorized Officer of the Issuer, under the circumstances described in, and

otherwise complying with, the applicable requirements of Section 11.1 and TIA

§ 314, and delivered to the Indenture Trustee.  Unless otherwise specified, any reference in this Indenture to an

Officer’s Certificate shall be to an Officer’s Certificate of any Authorized

Officer of the Issuer.  Each certificate

with respect to compliance with a condition or covenant provided for in this

Indenture shall include (1) a statement that the Authorized Officer signing the

certificate has read such covenant or condition; (2) a brief statement as to

the nature and scope of the examination or investigation upon which the

statements contained in such certificate are based; (3) a statement that in the

opinion of such person, he has made such examination or investigation as is

necessary to enable him to express an informed opinion as to whether or not

such covenant or condition has been complied with; and (4) a statement as to

whether or not, in the opinion of such person, such condition or covenant has

been complied with.

 

“Outstanding” means, as of the date of determination,

all Notes theretofore authenticated and delivered under this Indenture except:

 

(i)                                     Notes

theretofore canceled by the Note Registrar or delivered to the Note Registrar

for cancellation;

 

(ii)                                  Notes

or portions thereof the payment for which money in the necessary amount has

been theretofore deposited with the Indenture Trustee or any Note Paying Agent

in trust for the Holders of such Notes (provided, however, that

if such Notes are to be redeemed, notice of such redemption has been duly given

pursuant to the Series Supplement or provision therefor, satisfactory to the

Indenture Trustee, has been made); and

 

(iii)                               Notes in exchange for or

in lieu of other Notes which have been authenticated and delivered pursuant to

this Indenture unless proof satisfactory to the Indenture Trustee is presented

that any such Notes are held by a bona fide purchaser;

 

provided, however, that in determining

whether the Holders of the requisite Outstanding Amount of the Notes have given

any request, demand, authorization, direction, notice, 

 

4

 

consent or waiver hereunder or under any Basic Document, Notes owned by

the Issuer, any other obligor upon the Notes, the Seller or any Affiliate of

any of the foregoing Persons shall be disregarded and deemed not to be

Outstanding, except that, in determining whether the Indenture Trustee shall be

protected in relying upon any such request, demand, authorization, direction,

notice, consent or waiver, only Notes that a Responsible Officer of the

Indenture Trustee either actually knows to be so owned or has received written

notice thereof shall be so disregarded. 

Notes so owned that have been pledged in good faith may be regarded as Outstanding

if the pledgee establishes to the satisfaction of the Indenture Trustee the

pledgee’s right so to act with respect to such Notes and that the pledgee is

not the Issuer, any other obligor upon the Notes, the Seller or any Affiliate

of any of the foregoing Persons.

 

“Outstanding Amount” means the aggregate principal

amount of all Notes, or Class of Notes, as applicable, Outstanding at the date

of determination.

 

“Owner Trustee” has the meaning assigned to such term

in the Trust Agreement.

 

“Predecessor Note” means, with respect to any

particular Note, every previous Note evidencing all or a portion of the same

debt as that evidenced by such particular Note; and, for the purpose of this

definition, any Note authenticated and delivered under Section 2.5 in lieu of a

mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same

debt as the mutilated, lost, destroyed or stolen Note.

 

“Proceeding” means any suit in equity, action at law

or other judicial or administrative proceeding.

 

“Record Date” means, with respect to a Distribution

Date, the close of business on the Business Day immediately preceding such

Distribution Date.  However, if

Definitive Notes are issued, the Record Date shall be the last Business Day of

the month preceding a Distribution Date.

 

“Registration Statement” has the meaning specified

therefor in the Securities Act.

 

“Responsible Officer” means, with respect to the

Indenture Trustee or the Owner Trustee, any officer within the Corporate Trust

Office of the Indenture Trustee or the Owner Trustee, as the case may be,

including any Vice President, Assistant Vice President, Assistant Treasurer,

Assistant Secretary, Financial Services Officer or any other officer of the

Indenture Trustee or the Owner Trustee, as the case may be, customarily

performing functions similar to those performed by any of the above designated

officers and having direct responsibility for the administration of this

Indenture.

 

“Secured Parties” has the meaning assigned to such

term in the Series Supplement.

 

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

amended.

 

5

 

“Series Supplement” means the Series Supplement, dated

as of May 29, 2003, among the Master Servicer, the Issuer, the Seller, the

Indenture Trustee and the Owner Trustee, as such agreement may be amended or

supplemented from time to time.

 

“Series Trust Estate” has the meaning assigned to such

term in the Series Supplement.

 

“S&P” means Standard & Poor’s Rating Services,

a division of The McGraw-Hill Companies, Inc., or its successor.

 

“State” means any one of the 50 states of the United

States of America or the District of Columbia.

 

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

of authentication.

 

“Trust Agreement” has the meaning assigned to such

term in the Series Supplement.

 

“Trust Indenture Act” or “TIA” means the Trust

Indenture Act of 1939, as amended and as in force on the date hereof, unless

otherwise specifically provided.

 

“UCC” means, unless the context otherwise requires,

the Uniform Commercial Code, as in effect in the relevant jurisdiction, as

amended from time to time.

 

“Unregistered Note” means a Note which is not being

offered for sale hereunder pursuant to a Registration Statement.

 

Capitalized terms used herein and not otherwise

defined herein shall have the meanings assigned to them in the Master Sale and

Servicing Agreement, the Series Supplement or the Trust Agreement.

 

SECTION 1.2                                         Incorporation

by Reference of the Trust Indenture Act.                    Whenever this Indenture refers to a

provision of the TIA, the provision is incorporated by reference in and made a

part of this Indenture.  The following

TIA terms used in this Indenture have the following meanings:

 

“Commission” means the Securities and Exchange

Commission.

 

“indenture securities” means the Notes.

 

“indenture security holder” means a Noteholder.

 

“indenture to be qualified” means this Indenture.

 

“indenture trustee” or “institutional trustee” means

the Indenture Trustee.

 

“obligor” on the indenture securities means the

Issuer.

 

6

 

All other TIA terms used in this Indenture that are

defined by the TIA, or defined by Commission rule have the meaning assigned to

them by such definitions.

 

SECTION 1.3                          Rules

of Construction.  Unless the context

otherwise requires:

 

(i)                                              a

term has the meaning assigned to it;

 

(ii)                                           an

accounting term not otherwise defined has the meaning assigned to it in

accordance with generally accepted accounting principles as in effect from time

to time;

 

(iii)                                        “or”

is not exclusive;

 

(iv)                                       “including”

means including without limitation; and

 

(v)                                          words

in the singular include the plural and words in the plural include the

singular.

 

SECTION 1.4                          Action

by or Consent of Noteholders and Certificateholders.  Whenever any provision of this Indenture

refers to action to be taken, or consented to, by Noteholders or

Certificateholders, such provision shall be deemed to refer to the

Certificateholder or Noteholder, as the case may be, of record as of the Record

Date immediately preceding the date on which such action is to be taken, or

consent given, by Noteholders or Certificateholders.  Solely for the purposes of any action to be taken, or consented

to, by Noteholders or Certificateholders, any Note or Certificate registered in

the name of Seller or any Affiliate thereof shall be deemed not to be

Outstanding (except in the event that the Seller and/or an Affiliate thereof

then owns all outstanding Certificates and Outstanding Notes); provided,

however, that, solely for the purpose of determining whether the

Indenture Trustee is entitled to rely upon any such action or consent, only

Notes or Certificates which the Owner Trustee or the Indenture Trustee,

respectively, knows to be so owned shall be so disregarded.

 

SECTION 1.5                           Conflict

with TIA.  If this Indenture is

qualified under the TIA, and if any provision hereof limits, qualifies or

conflicts with a provision of the TIA that is required under the TIA to be part

of and govern this Indenture, the latter provision shall control.  If any provision of this Indenture modifies

or excludes any provision of the TIA that may be so modified or excluded, the

latter provisions shall be deemed to apply to this Indenture as so modified or

to be excluded, as the case may be.

 

ARTICLE II.

 

The Notes

 

SECTION 2.1                           Form; Amount Limited; Issuable in

Series.

 

(a)                                  The

Notes shall be in substantially the form set forth in the Series Supplement,

with such appropriate insertions, omissions, substitutions and other 

 

7

 

variations as are required or permitted by this Indenture or the Series

Supplement and may have such letters, numbers or other marks of identification

and such legends or endorsements placed thereon as may, consistently herewith,

be determined by the officers executing such Notes, as evidenced by their

execution of the Notes.  Any portion of

the text of any Note may be set forth on the reverse thereof, with an

appropriate reference thereto on the face of the Note.

 

The Definitive Notes shall be typewritten, printed,

lithographed or engraved or produced by any combination of these methods (with

or without steel engraved borders), all as determined by the officers executing

such Notes, as evidenced by their execution of such Notes.

 

Each Note shall be dated the date of its

authentication.  The terms of the Notes

set forth in the Series Supplement are part of the terms of this Indenture.

 

(b)                                 The

aggregate principal amount of Notes which may be authenticated and delivered

and Outstanding at any time under this Indenture is not limited; provided

that the Series Supplement may so limit the aggregate principal amount of

Notes.  The Notes shall be issued in a

series, and may be issued in Classes and/or Tranches within such series (and

Tranches within a Class).

 

No Notes shall be issued under this Indenture unless

such Notes have been authorized pursuant to the Series Supplement, and all

conditions precedent to the issuance thereof, as specified in the Series

Supplement, shall have been satisfied.

 

All Notes issued under this Indenture shall be in all

respects equally and ratably entitled to the benefits hereof and secured by the

Series Trust Estate without preference, priority or distinction on account of

the actual time or times of authentication and delivery, all in accordance with

the terms and provisions hereof and the Series Supplement.

 

SECTION 2.2                          Execution, Authentication and

Delivery.  The Notes shall be

executed on behalf of the Issuer by any of its Authorized Officers.  The signature of any such Authorized Officer

on the Notes may be original or facsimile.

 

Notes bearing the original or facsimile signature of

individuals who were at any time Authorized Officers of the Issuer shall bind

the Issuer, notwithstanding that such individuals or any of them have ceased to

hold such offices prior to the authentication and delivery of such Notes or did

not hold such offices at the issuance date of such Notes.

 

The Notes shall be issuable in the denominations

specified in the Series Supplement.

 

No Note shall be entitled to any benefit under this

Indenture or the Series Supplement or be valid or obligatory for any purpose,

unless there appears attached to such Note a certificate of authentication,

substantially in the form attached as Exhibit B to the Series Supplement,

executed by the Indenture Trustee by the manual signature of 

 

8

 

one of its authorized signatories, and such

certificate attached to any Note shall be conclusive evidence, and the only

evidence, that such Note has been duly authenticated and delivered hereunder.

 

SECTION 2.3                           Temporary

Notes.  Pending the preparation of

Definitive Notes of any Class or Tranche, the Issuer may execute, and upon

receipt of an Issuer Order prepared and delivered by the Master Servicer, the

Indenture Trustee shall authenticate and deliver, temporary Notes which are

printed, lithographed, typewritten, mimeographed or otherwise produced, of the

tenor of the Definitive Notes in lieu of which they are issued and with such

variations not inconsistent with the terms of this Indenture as the officers

executing such Notes may determine, as evidenced by their execution of such

Notes.

 

If temporary Notes of any Class or Tranche are issued,

the Issuer will cause Definitive Notes of such Class or Tranche to be prepared

without unreasonable delay.  After the

preparation of Definitive Notes of such Class or Tranche, the temporary Notes

shall be exchangeable for Definitive Notes of such Class or Tranche upon surrender

of the temporary Notes at the office or agency of the Issuer to be maintained

as provided in Section 3.2, without charge to the Holder.  Upon surrender for cancellation of any one

or more temporary Notes, the Issuer shall execute and the Indenture Trustee

shall authenticate and deliver in exchange therefor a like principal amount of

Definitive Notes of such Class or Tranche of authorized denominations.  Until so exchanged, the temporary Notes of

any Class or Tranche shall in all respects be entitled to the same benefits

under this Indenture and the Series Supplement as Definitive Notes of such

Class or Tranche.

 

SECTION 2.4                          Registration;

Registration of Transfer and Exchange. 

The Issuer shall cause to be kept a register (the “Note Register”) in

which, subject to such reasonable regulations as it may prescribe, the Issuer

shall provide for the registration of Notes and the registration of transfers

of Notes.  The Indenture Trustee shall

be “Note Registrar” for the purpose of registering Notes and transfers of Notes

as herein provided.  Upon any

resignation of any Note Registrar, the Issuer shall promptly appoint a

successor or, if it elects not to make such an appointment, assume the duties

of Note Registrar.

 

If a Person other than the Indenture Trustee is

appointed by the Issuer as Note Registrar, the Issuer will give the Indenture

Trustee prompt written notice of the appointment of such Note Registrar and of

the location, and any change in the location, of the Note Register, and the

Indenture Trustee shall have the right to inspect the Note Register at all

reasonable times and to obtain copies thereof. 

The Indenture Trustee shall have the right to rely upon a certificate

executed on behalf of the Note Registrar by an Authorized Officer thereof as to

the names and addresses of the Holders of the Notes and the principal amounts

and number of such Notes.

 

Upon surrender for registration or transfer of any

Note at the office or agency of the Issuer to be maintained as provided in

Section 3.2, and if the requirements of Section 8-401(1) of the UCC are met,

the Issuer shall execute and cause the Indenture Trustee to authenticate one or

more new Notes, in any authorized denominations, of the

 

9

 

same class and a like

aggregate principal amount.  A

Noteholder may also obtain from the Indenture Trustee, in the name of the

designated transferee or transferees one or more new Notes, in any authorized

denominations, of the same Class and Tranche, as applicable, and a like

aggregate principal amount.  Such

requirements shall not be deemed to create a duty in the Indenture Trustee to

monitor the compliance by the Issuer with Section 8-401 of the UCC.

 

At the option of the Holder, Notes of any Class or

Tranche may be exchanged for other Notes of such Class or Tranche in any

authorized denominations of the same Class (and Tranche, if applicable) and a

like aggregate principal amount, upon surrender of the Notes to be exchanged at

such office or agency.  Whenever any

Notes are so surrendered for exchange, and if the requirements of Section

8-401(1) of the UCC are met, the Issuer shall execute and upon its written

request the Indenture Trustee shall authenticate the Notes which the Noteholder

making the exchange is entitled to receive. 

Such requirements shall not be deemed to create a duty in the Indenture

Trustee to monitor the compliance by the Issuer with Section 8-401 of the UCC.

 

All Notes issued upon any registration of transfer or

exchange of Notes shall be the valid obligations of the Issuer, evidencing the

same debt, and entitled to the same benefits under this Indenture and the

Series Supplement, as the Notes surrendered upon such registration of transfer

or exchange.

 

Unless specified in the Series Supplement, every Note

presented or surrendered for registration of transfer or exchange shall, unless

specified in the Series Supplement, be (i) duly endorsed by, or be accompanied

by a written instrument of transfer in the form attached as an exhibit to the

Note duly executed by the Holder thereof or such Holder’s attorney duly

authorized in writing, with such signature guaranteed by an “eligible guarantor

institution” meeting the requirements of the Note Registrar which requirements

include membership or participation in Securities Transfer Agents Medallion

Program (“Stamp”) or such other “signature guarantee program” as may be

determined by the Note Registrar in addition to, or in substitution for, Stamp,

all in accordance with the Exchange Act, and (ii) accompanied by such other

documents as the Note Registrar may require.

 

No service charge shall be made to a Holder for any

registration of transfer or exchange of Notes, but the Note Registrar may

require payment of a sum sufficient to cover any tax or other governmental charge

that may be imposed in connection with any registration of transfer or exchange

of Notes.

 

Notwithstanding, the preceding provisions of this

section, the Issuer shall not be required to make, and the Note Registrar shall

not register, transfers or exchanges of Notes selected for redemption for a

period of 15 days preceding the Distribution Date.

 

The Note Registrar shall not register the transfer of

a Definitive Note unless the transferee has executed and delivered to the

Indenture Trustee a certification, in the form of Exhibit A hereto, to

the effect that either (i) the transferee is not (A) an employee benefit plan

(within the meaning of Section 3(3) of the Employee Retirement 

 

10

 

Income Security Act of 1974, as amended (“ERISA”))

that is subject to Title I of ERISA or (B) a plan (within the meaning of

Section 4975(e)(1) of the Code) that is subject to Section 4975 of the

Code (each of the foregoing, a “Plan”), and is not acting on behalf of or investing

the assets of a Plan or (ii) that the transferee’s acquisition and continued

holding of the Definitive Note will be covered by a prohibited transaction

class exemption issued by the U.S. Department of Labor.  Each Note Owner that purchases a Book-Entry

Note, or to whom a Book-Entry Note is transferred, shall be deemed to represent

that either (i) it is not a Plan and is not acting on behalf of or investing

the assets of a Plan or (ii) its acquisition and continued holding of the

Book-Entry Note will be covered by a prohibited transaction class exemption

issued by the U.S. Department of Labor.

 

No Holder of an Unregistered Note shall transfer its

Note, unless (i) such transfer is made in accordance with Rule 144A under the

Securities Act or (ii) pursuant to an exemption from registration provided by

Rule 144 under the Securities Act (if available) and the registration and

qualification requirements under applicable state securities laws.

 

Each Unregistered Note issued hereunder will contain

the following legend limiting sales to “Qualified Institutional Buyers” within

the meaning of Rule 144A under the Securities Act:

 

THIS

NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES

ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND HAS NOT BEEN APPROVED OR

DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR REGULATORY AUTHORITY

OF ANY STATE.  THIS NOTE HAS BEEN

OFFERED AND SOLD PRIVATELY.  THE HOLDER HEREOF

ACKNOWLEDGES THAT THESE SECURITIES ARE “RESTRICTED SECURITIES” THAT HAVE NOT

BEEN REGISTERED UNDER THE SECURITIES ACT AND AGREES FOR THE BENEFIT OF THE

OBLIGORS AND ITS AFFILIATES THAT THESE SECURITIES MAY NOT BE OFFERED, SOLD,

PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) TO A PERSON WHOM THE SELLER

REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF

RULE 144A UNDER THE SECURITIES ACT IN A TRANSACTION MEETING THE REQUIREMENTS OF

RULE 144A OR (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE

144 UNDER THE SECURITIES ACT (IF AVAILABLE), IN EACH CASE IN ACCORDANCE WITH

ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER

JURISDICTION.

 

SECTION 2.5                           Mutilated,

Destroyed, Lost or Stolen Notes.  If

(i) any mutilated Note is surrendered to the Indenture Trustee, or the Indenture

Trustee receives evidence to its satisfaction of the destruction, loss or theft

of any Note, and (ii) there is 

 

11

 

delivered to each of the Issuer, the Indenture Trustee

and the Insurer (for so long as it is the Controlling Party) such security or

indemnity as may be required by it to hold the Issuer, the Indenture Trustee

and the Insurer (for so long as it is the Controlling Party) harmless, then, in

the absence of notice to the Issuer, the Note Registrar or the Indenture

Trustee that such Note has been acquired by a bona fide purchaser, and provided

that the requirements of Section 8-405 of the UCC are met, the Issuer shall

execute and upon its written request the Indenture Trustee shall authenticate and

deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or

stolen Note, a replacement Note of the same Class or Tranche (such requirement

shall not be deemed to create a duty in the Indenture Trustee to monitor the

compliance by the Issuer with Section 8-405); provided, however,

that if any such destroyed, lost or stolen Note, but not a mutilated Note,

shall have become, or within seven days shall be due and payable, or shall have

been called for redemption pursuant to the terms of the Series Supplement, the

Issuer may, instead of issuing a replacement Note, direct the Indenture

Trustee, in writing, to pay such destroyed, lost or stolen Note when so due or

payable or upon the redemption date without surrender thereof.  If, after the delivery of such replacement

Note or payment of a destroyed, lost or stolen Note pursuant to the proviso in

the preceding sentence, a bona fide purchaser of the original Note in lieu of

which such replacement Note was issued presents for payment such original Note,

the Issuer and the Indenture Trustee shall be entitled to recover such

replacement Note (or such payment) from the Person to whom it was delivered or

any Person taking such replacement Note from such Person to whom such

replacement Note was delivered or any assignee of such Person, except a bona

fide purchaser, and shall be entitled to recover upon the security or indemnity

provided therefor to the extent of any loss, damage, cost or expense incurred

by the Issuer or the Indenture Trustee in connection therewith.

 

Upon the issuance of any replacement Note under this

Section, the Issuer may require the payment by the Holder of such Note of a sum

sufficient to cover any tax or other governmental charge that may be imposed in

relation thereto and any other reasonable expenses (including the fees and

expenses of the Indenture Trustee) connected therewith.

 

Every replacement Note issued pursuant to this Section

in replacement of any mutilated, destroyed, lost or stolen Note shall

constitute an original additional contractual obligation of the Issuer, whether

or not the mutilated, destroyed, lost or stolen Note shall be at any time

enforceable by anyone, and shall be entitled to all the benefits of this

Indenture and the Series Supplement equally and proportionately with any and

all other Notes duly issued hereunder.

 

The provisions of this Section are exclusive and shall

preclude (to the extent lawful) all other rights and remedies with respect to

the replacement or payment of mutilated, destroyed, lost or stolen Notes.

 

SECTION 2.6                          Persons

Deemed Owner.  Prior to due

presentment for registration of transfer of any Note, the Issuer, the Indenture

Trustee and any agent of Issuer or the Indenture Trustee may treat the Person

in whose name any Note is registered (as of the Record Date) as the owner of

such Note for the purpose of receiving payments

 

12

 

of principal of and interest, if any on such Note and

for all other purposes whatsoever, whether or not such Note be overdue, and

none of the Issuer, the Indenture Trustee, the Insurer nor any agent of the

Issuer, the Indenture Trustee or the Insurer shall be affected by notice to the

contrary.

 

SECTION 2.7                          Payment

of Principal and Interest; Defaulted Interest.

 

(a)                                  The

Notes shall accrue interest as provided in the form of Note set forth in the

Series Supplement and such interest shall be due and payable on each

Distribution Date as specified therein. 

Any installment of interest or principal, if any, payable on any Note

which is punctually or duly provided for by the Issuer on the applicable

Distribution Date shall be paid, as provided in the Series Supplement, or if

not so provided to the Person in whose name such Note (or one or more

Predecessor Notes) is registered on the Record Date, by check mailed

first-class, postage prepaid, to such Person’s address as it appears on the

Note Register on such Record Date, except that, if the Notes are Book Entry

Notes, unless Definitive Notes have been issued pursuant to Section 2.12,

with respect to Notes registered on the Record Date in the name of the nominee

of the Clearing Agency (initially, such nominee to be Cede & Co.), payment

will be made by wire transfer in immediately available funds to the account

designated by such nominee and except for the final installment of principal

payable with respect to such Note on a Distribution Date or on the Final

Scheduled Distribution Date as set forth in the Series Supplement which shall

be payable as provided below.  The funds

represented by any such checks returned undelivered shall be held in accordance

with Section 3.3.

 

(b)                                 The

principal of each Note shall be payable in installments on each Distribution

Date as provided in the form of Note set forth in the Series Supplement.  Notwithstanding the foregoing, the entire

unpaid principal amount of the Notes shall be due and payable, if not

previously paid, on the date on which an Event of Default shall have occurred

and be continuing, if the Notes are declared to be immediately due and payable

in the manner provided in the Series Supplement.  Upon written notice from the Master Servicer on behalf of the

Issuer, the Indenture Trustee shall notify the Person in whose name a Note is

registered at the close of business on the Record Date preceding the

Distribution Date on which the Issuer expects that the final installment of

principal of and interest on such Note will be paid.  Such notice may be mailed or transmitted by facsimile prior to

such final Distribution Date and may specify that such final installment will

be payable only upon presentation and surrender of such Note and shall specify

the place where such Note may be presented and surrendered for payment of such

installment.

 

(c)                                  If

the Issuer defaults in a payment of interest on the Notes, the Issuer shall pay

defaulted interest (plus interest on such defaulted interest to the extent

lawful) at the applicable Note Rate to the extent lawful.  Unless otherwise provided in the Series

Supplement, the Issuer may pay such defaulted interest to the Persons who are

Noteholders on a subsequent special record date, which date shall be at least

five Business Days prior to the payment date. 

The Issuer shall fix or cause to be fixed any such special record date

and payment date, and, at least 15 days before any such special 

 

13

 

record date, the Issuer shall mail to each Noteholder and the Indenture

Trustee a notice that states the special record date, the payment date and the

amount of defaulted interest to be paid.

 

SECTION 2.8                          Cancellation.  All Notes surrendered for payment,

registration of transfer, exchange or redemption shall, if surrendered to any

Person other than the Indenture Trustee, be delivered to the Indenture Trustee

and shall be promptly canceled by the Indenture Trustee in accordance with its

customary procedures.  The Issuer may at

any time deliver to the Indenture Trustee for cancellation any Notes previously

authenticated and delivered hereunder which the Issuer may have acquired in any

manner whatsoever, and all Notes so delivered shall be promptly canceled by the

Indenture Trustee in accordance with its customary procedures.  No Notes shall be authenticated in lieu of

or in exchange for any Notes canceled as provided in this Section, except as

expressly permitted by this Indenture. 

All canceled Notes may be held or disposed of by the Indenture Trustee

in accordance with its standard retention or disposal policy as in effect at

the time.

 

SECTION 2.9                          Reserved.

 

SECTION 2.10                    Book-Entry

Notes.  The Notes, upon original

issuance, may be issued in the form of typewritten Notes representing the

Book-Entry Notes, to be delivered to The Depository Trust Company or its agent,

the initial Clearing Agency, by, or on behalf of, the Issuer.  Such Notes may initially be registered on the

Note Register in the name of Cede & Co., the nominee of the initial

Clearing Agency, and no Note Owner will receive a Definitive Note representing

such Note Owner’s interest in such Note, except as provided in Section

2.12.  Unless and until definitive,

fully registered Notes (the “Definitive Notes”) have been issued to Note Owners

pursuant to Section 2.12:

 

(i)                                              the

provisions of this Section shall be in full force and effect;

 

(ii)                                           the

Note Registrar and the Indenture Trustee shall be entitled to deal with the

Clearing Agency for all purposes of this Indenture (including the payment of

principal of and interest on the Notes and the giving of instructions or

directions hereunder) as the sole Holder of the Notes, and shall have no

obligation to the Note Owners;

 

(iii)                                        to

the extent that the provisions of this Section conflict with any other

provisions of this Indenture, the provisions of this Section shall control;

 

(iv)                                       the

rights of Note Owners shall be exercised only through the Clearing Agency and

shall be limited to those established by law and agreements between such Note

Owners and the Clearing Agency and/or the Clearing Agency Participants.  Unless and until Definitive Notes are issued

pursuant to Section 2.12, the initial Clearing Agency will make book-entry

transfers among the Clearing Agency Participants and receive and transmit

payments of principal of and interest on the Notes to such Clearing Agency

Participants;

 

14

 

(v)                                          whenever

this Indenture requires or permits actions to be taken based upon instructions

or directions of Holders of Notes evidencing a specified percentage of the

Outstanding Amount of the Notes, the Clearing Agency shall be deemed to represent

such percentage only to the extent that it has received instructions to such

effect from Note Owners and/or Clearing Agency Participants owning or

representing, respectively, such required percentage of the beneficial interest

in the Notes or in the Notes of a Class, as the case maybe, and has delivered

such instructions to the Indenture Trustee; and

 

(vi)                                       Note

Owners may receive copies of any reports sent to Noteholders pursuant to this

Indenture, upon written request, together with a certification that they are

Note Owners and payment of reproduction and postage expenses associated with

the distribution of such reports, from the Indenture Trustee at the Corporate

Trust Office or, if applicable, on the Indenture Trustee’s web-site specified

in the Series Supplement.

 

SECTION 2.11                     Notices to

Clearing Agency.  With respect to

any Notes which are Book Entry Notes, whenever a notice or other communication

to the Noteholders is required under this Indenture, unless and until

Definitive Notes shall have been issued to Note Owners pursuant to Section

2.12, the Indenture Trustee shall give all such notices and communications

specified herein to be given to Holders of the Notes to the Clearing Agency,

and shall have no obligation to the Note Owners.

 

SECTION 2.12                     Definitive

Notes.  If any Notes are Book-Entry

Notes and if (i) the Master Servicer advises the Indenture Trustee in writing

that the Clearing Agency is no longer willing or able to properly discharge its

responsibilities with respect to such Notes, and the Master Servicer is unable

to locate a qualified successor, (ii) the Master Servicer at its option advises

the Indenture Trustee in writing that it elects to terminate the book-entry

system through the Clearing Agency or (iii) after the occurrence of an Event of

Default, Note Owners representing beneficial interests aggregating at least a

majority of the Outstanding Amount of the Notes advise the Indenture Trustee

through the Clearing Agency in writing that the continuation of a book entry

system through the Clearing Agency is no longer in the best interests of the

Note Owners, then the Clearing Agency shall notify all Note Owners and the

Indenture Trustee of the occurrence of any such event and of the availability

of Definitive Notes to Note Owners requesting the same.  Upon surrender to the Indenture Trustee of

the typewritten Note or Notes representing the Book-Entry Notes by the Clearing

Agency, accompanied by registration instructions, the Issuer shall execute and

upon the written direction of the Issuer the Indenture Trustee shall

authenticate the Definitive Notes in accordance with the instructions of the

Clearing Agency.  None of the Issuer,

the Note Registrar or the Indenture Trustee shall be liable for any delay in

delivery of such instructions and may conclusively rely on, and shall be

protected in relying on, such instructions. 

Upon the issuance of Definitive Notes, the Indenture Trustee shall

recognize the Holders of the Definitive Notes as Noteholders.

 

15

 

SECTION 2.13                    Final

Distribution.

 

(a)                                  The

Master Servicer on behalf of the Issuer shall give the Indenture Trustee at

least 15 days prior written notice of the Distribution Date (or other date) on

which the Noteholders of any Class may surrender their Notes for payment of the

final distribution on and cancellation of such Notes.  Not later than the fifth day of the month in which the final

distribution in respect of such Class is payable to Noteholders, the Indenture

Trustee shall provide notice to the Noteholders of such Class specifying

(i) the date upon which final payment of such Class will be made upon

presentation and surrender of Notes (if required) of such Class at the office

or offices therein designated, (ii) the amount of any such final payment

and (iii) that the Record Date otherwise applicable to such payment date

is not applicable, payments being made only upon presentation and surrender of

such Notes at the office or offices therein specified.  Unless it is serving in the related

functions, the Indenture Trustee shall give such notice to the Note Registrar

and the Note Paying Agent at the time such notice is given to Noteholders.

 

(b)                                 Notwithstanding

a final distribution to the Noteholders of any Class, except as otherwise

provided in this paragraph, all funds then on deposit in the Collection Account

and the Trust Accounts shall continue to be held in trust for the benefit of

such Noteholders, and the Note Paying Agent or the Indenture Trustee shall pay

such funds to such Noteholders upon surrender of their Notes.  In the event that all such Noteholders shall

not surrender their Notes for cancellation within six months after the date

specified in the notice from the Indenture Trustee described in paragraph (a),

the Indenture Trustee shall give a second notice to the remaining such

Noteholders to surrender their Notes for cancellation and receive the final

distribution with respect thereto.  If

within one year after the second notice all such Notes shall not have been

surrendered for cancellation, the Indenture Trustee may take appropriate steps,

or may appoint an agent to take appropriate steps, to contact the remaining

such Noteholders concerning surrender of their Notes, and the cost thereof

shall be paid out of the funds in the account held for the benefit of such

Noteholders.  The Indenture Trustee and

the Note Paying Agent shall upon written request pay to the Issuer any moneys

held by them for the payment of principal or interest that remains unclaimed

for two years.  After payment to the

Issuer, Noteholders entitled to the money must look to the Issuer for payment

as general unsecured creditors unless an applicable abandoned property law

designates another Person and all liability of the Insurer under the Note

Policy, the Indenture Trustee or such Note Paying Agent with respect to such

trust money shall thereupon cease.

 

(c)                                  Any

notice required or permitted to be given to a Holder of Registered Notes shall

be given by first-class mail, postage prepaid, at the address of such Holder as

shown in the Note Register.

 

ARTICLE III.

 

Covenants

 

SECTION 3.1                           Payment

of Principal and Interest.  The

Issuer will duly and punctually pay or cause to be paid the principal of and

interest on the Notes in 

 

16

 

accordance with the terms of the Notes, this Indenture

and the Series Supplement.  Amounts

properly withheld under the Code by any Person from a payment to any Noteholder

of interest and/or principal shall be considered as having been paid by the

Issuer to such Noteholder for all purposes of this Indenture.

 

SECTION 3.2                           Maintenance

of Office or Agency.  The Issuer

will maintain an office or agency where Notes may be surrendered for

registration, transfer or exchange of the Notes, and where notices and demands

to or upon the Issuer in respect of the Notes and this Indenture may be

served.  The Issuer hereby initially

appoints the Indenture Trustee to serve as its agent for the foregoing

purposes.  The Issuer will give prompt

written notice to the Indenture Trustee of the location, and of any change in

the location, of any such office or agency. 

If at any time the Issuer shall fail to maintain any such office or

agency or shall fail to furnish the Indenture Trustee with the address thereof,

such surrenders, notices and demands may be made or served at the Corporate

Trust Office, and the Issuer hereby appoints the Indenture Trustee as its agent

to receive all such surrenders, notices and demands.

 

SECTION 3.3                           Money

for Payments to be Held in Trust.                     One

Business Day prior to each Distribution Date, the Issuer shall deposit or cause

to be deposited to the Collection Account Available Funds (which shall be

immediately available) with respect to the related Collection Period.  Such sum shall be held in trust for the

benefit of the Persons entitled thereto and (unless the Note Paying Agent is

the Indenture Trustee), the Issuer shall promptly notify the Indenture Trustee

of its action or failure so to act.

 

The Issuer hereby appoints the Person serving as Indenture

Trustee as Note Paying Agent to make payments to Noteholders on behalf of the

Issuer in accordance with the provisions of the Notes, this Indenture and the

Series Supplement, and such Person hereby accepts such appointment (subject to

removal in the event it no longer serves as Indenture Trustee pursuant to

Section 6.8).

 

The Issuer will cause each Note Paying Agent other

than the Indenture Trustee to execute and deliver to the Indenture Trustee an

instrument in which such Note Paying Agent shall agree with the Indenture

Trustee (and if the Indenture Trustee acts as Note Paying Agent with respect to

clauses (i) and (v), it hereby so agrees), subject to the provisions of this

Section, that such Note Paying Agent will:

 

(i)                                              hold

all sums held by it for the payment of amounts due with respect to the Notes in

trust for the benefit of the Persons entitled thereto until such sums shall be

paid to such Persons or otherwise disposed of as herein provided and pay such

sums to such Persons as herein provided;

 

(ii)                                           give

the Indenture Trustee written notice of any default by the Issuer of which a

Responsible Officer of the Note Paying Agent has actual knowledge (or any other

obligor upon the Notes) in the making of any payment required to be made with

respect to the Notes;

 

17

 

(iii)                                        at

any time during the continuance of any such default, upon the written request

of the Indenture Trustee, forthwith pay to the Indenture Trustee all sums so

held in trust by such Note Paying Agent;

 

(iv)                                       immediately

resign as a Note Paying Agent and forthwith pay to the Indenture Trustee all

sums held by it in trust for the payment of Notes if at any time it ceases to

meet the standards required to be met by a Note Paying Agent at the time of its

appointment; and

 

(v)                                          comply

with all requirements of the Code with respect to the withholding from any

payments made by it on any Notes of any applicable withholding taxes imposed

thereon and with respect to any applicable reporting requirements in connection

therewith.

 

The Issuer may at any time, for the purpose of

obtaining the satisfaction and discharge of this Indenture and the Series

Supplement or for any other purpose, by Issuer Order direct any Note Paying

Agent to pay to the Indenture Trustee all sums held in trust by such Note

Paying Agent, such sums to be held by the Indenture Trustee upon the same

trusts as those upon which the sums were held by such Note Paying Agent; and

upon such a payment by any Note Paying Agent to the Indenture Trustee, such

Note Paying Agent shall be released from all further liability with respect to

such money.

 

The Issuer hereby appoints the Person serving as

Indenture Trustee, as Certificate Paying Agent to make payments to

Certificateholders on behalf of the Issuer in accordance with the provisions of

the Certificates, this Indenture and the Trust Agreement, and such Person

hereby accepts such appointment (subject to removal in the event it no longer

serves as Indenture Trustee pursuant to Section 6.8) and further agrees

that it will be bound by the provisions of the Trust Agreement relating to the

Certificate Paying Agent and will:

 

(i)                                              hold

all sums held by it for the payment of amounts due with respect to the

Certificates in trust for the benefit of the Persons entitled thereto until

such sums shall be paid to such Persons or otherwise disposed of as herein

provided and as provided in the Trust Agreement and pay such sums to such

Persons as herein and therein provided;

 

(ii)                                           give

the Owner Trustee notice of any default by the Issuer of which a Responsible

Officer of the Indenture Trustee has actual knowledge in the making of any

payment required to be made with respect to the Certificates;

 

(iii)                                        at

any time during the continuance of any such default, upon the written request

of the Owner Trustee forthwith pay to the Owner Trustee on behalf of the Issuer

all sums so held in Trust by such Certificate Paying Agent;

 

(iv)                                       immediately

resign as a Certificate Paying Agent and forthwith pay to the Owner Trustee on

behalf of the Issuer all sums held by it in trust for the payment of

Certificates if at any time it ceases to meet the standards required to be met

by a Note Paying Agent at the time of its appointment; and

 

18

 

(v)                                          comply

with all requirements of the Code with respect to the withholding from any

payments made by it on any Certificates of any applicable withholding taxes

imposed thereon and with respect to any applicable reporting requirements in

connection therewith.

 

SECTION 3.4                           Existence.  Except as otherwise permitted by the

provisions of Section 3.10, the Issuer will keep in full effect its existence,

rights and franchises as a statutory trust under the laws of the State of

Delaware (unless it becomes, or any successor Issuer hereunder is or becomes,

organized under the laws of any other state or of the United States of America,

in which case the Issuer will keep in full effect its existence, rights and

franchises under the laws of such other jurisdiction) and will obtain and

preserve its qualification to do business in each jurisdiction in which such

qualification is or shall be necessary to protect the validity and

enforceability of this Indenture, the Series Supplement, the Notes and each

other instrument or agreement included in the Series Trust Estate.

 

SECTION 3.5                          Protection

of Series Trust Estate.  The Issuer

intends the security interest Granted pursuant to this Indenture and the Series

Supplement in favor of the Secured Parties to be prior to all other liens in

respect of the Series Trust Estate, and the Issuer shall take all actions

necessary to obtain and maintain, in favor of the Indenture Trustee for the

benefit of the Secured Parties a first lien on and a first priority, perfected

security interest in the Series Trust Estate. 

The Issuer will: (a) from time to time prepare (or shall cause to be

prepared), execute and deliver all such supplements and amendments hereto and

all such financing statements, continuation statements, instruments of further

assurance and other instruments, (b) authenticate such records, and (c) take

such other action necessary or advisable to:

 

(i)                                              Grant

more effectively all or any portion of the Series Trust Estate;

 

(ii)                                           maintain

or preserve the lien and security interest (and the priority thereof) in favor

of the Indenture Trustee for the benefit of the Secured Parties created by this

Indenture and the Series Supplement or carry out more effectively the purposes

hereof;

 

(iii)                                        perfect,

publish notice of or protect the validity of any Grant made or to be made by

this Indenture and the Series Supplement ;

 

(iv)                                       enforce

any of the Series Trust Estate;

 

(v)                                          preserve

and defend title to the Series Trust Estate and the rights of the Indenture

Trustee in such Series Trust Estate against the claims of all persons and

parties; and

 

(vi)                                       pay

all taxes or assessments levied or assessed upon the Series Trust Estate when

due.

 

19

 

SECTION 3.6                          Opinions

as to Series Trust Estate.

 

(a)                                  On

the Closing Date, the Issuer shall furnish to the Indenture Trustee and the

Insurer an Opinion of Counsel either stating that, in the opinion of such

counsel, such action has been taken with respect to the recording and filing of

this Indenture, the Series Supplement, and any other requisite documents, and

with respect to the execution and filing of any financing statements and

continuation statements, as are necessary to perfect and make effective the

first priority lien and security interest in favor of the Indenture Trustee for

the benefit of the Secured Parties, created by this Indenture and the Series

Supplement and reciting the details of such action, or stating that, in the

opinion of such counsel, no such action is necessary to make such perfected lien

and security interest effective.

 

(b)                                 Within

90 days after the beginning of each calendar year, beginning with the calendar

year succeeding the Closing Date, the Master Servicer on behalf of the Issuer

shall furnish to the Indenture Trustee and the Insurer an Opinion of Counsel

either stating that, in the opinion of such counsel, such action has been taken

with respect to the recording, filing, re-recording and refiling of this

Indenture, the Series Supplement and any other requisite documents, with respect

to the execution and filing of any financing statements and continuation

statements, and with respect to the authentication of such records as are

necessary to maintain the lien and security interest created by this Indenture

and the Series Supplement and reciting the details of such action or stating

that in the opinion of such counsel no such action is necessary to maintain

such lien and security interest.  Such

Opinion of Counsel shall also describe the recording, filing, re-recording and

refiling of this Indenture, any indentures supplemental hereto and any other

requisite documents, the execution and filing of any financing statements and

continuation statements and the authentication of such records that will, in

the opinion of such counsel, be required to maintain the lien and security

interest of this Indenture and the Series Supplement until March 31 of the

following calendar year.

 

SECTION 3.7                          Performance

of Obligations; Servicing of Receivables.

 

(a)                                  The

Issuer will not take any action and will use its best efforts not to permit any

action to be taken by others that would release any Person from any of such

Person’s material covenants or obligations under any instrument or agreement

included in the Series Trust Estate or that would result in the amendment,

hypothecation, subordination, termination or discharge of, or impair the

validity or effectiveness of, any such instrument or agreement, except as

ordered by any bankruptcy or other court or as expressly provided in this

Indenture and the Basic Documents or such other instrument or agreement.

 

(b)                                 The

Issuer has contracted with the Master Servicer to assist the Issuer in

performing its duties under this Indenture and the Series Supplement.  The Issuer may contract with Persons other

than the Master Servicer to assist it in performing its duties under this

Indenture and the Series Supplement with the consent of the Insurer (for so

long as it is the Controlling Party), and any performance of such duties by a

Person identified to the Indenture Trustee and the Insurer (for so long as it

is the

 

20

 

Controlling Party) in an Officer’s Certificate of the Issuer shall be

deemed to be action taken by the Issuer.

 

(c)                                  The

Issuer will punctually perform and observe all of its obligations and

agreements contained in this Indenture and the Basic Documents and in the

instruments and agreements included in the Series Trust Estate, including, but

not limited, to preparing (or causing to be prepared) and filing (or causing to

be filed) all UCC financing statements and continuation statements required to

be filed by the terms of this Indenture, the Series Supplement and the Master

Sale and Servicing Agreement in accordance with and within the time periods

provided for herein and therein.  Except

as otherwise expressly provided therein, the Issuer shall not waive, amend,

modify, supplement or terminate any Basic Document or any provision thereof

without the consent of the Indenture Trustee and the Insurer (for so long as it

is the Controlling Party).

 

(d)                                 If

a Responsible Officer of the Owner Trustee shall have actual knowledge of the

occurrence of a Master Servicer Termination Event under the Master Sale and

Servicing Agreement, the Issuer shall promptly notify the Indenture Trustee,

the Insurer and the Rating Agencies thereof in accordance with Section 11.4,

and shall specify in such notice the action, if any, the Issuer is taking in

respect of such default.  If a Master

Servicer Termination Event shall arise from the failure of the Master Servicer

to perform any of its duties or obligations under the Master Sale and Servicing

Agreement with respect to the Receivables, the Issuer shall take all reasonable

steps available to it to remedy such failure.

 

SECTION 3.8                          Negative

Covenants.  So long as any Notes are

Outstanding, the Issuer shall not:

 

(i)                                              except

as expressly permitted by this Indenture or the Basic Documents, sell,

transfer, exchange or otherwise dispose of any of the properties or assets of

the Issuer, including those included in the Series Trust Estate;

 

(ii)                                           claim

any credit on, or make any deduction from the principal or interest payable in

respect of, the Notes of a Series (other than amounts properly withheld from

such payments under the Code) or assert any claim against any present or former

Noteholder by reason of the payment of the taxes levied or assessed upon any

part of the Series Trust Estate; or

 

(iii)                                        (A)

permit the validity or effectiveness of this Indenture or the Series Supplement

to be impaired, or permit the lien in favor of the Indenture Trustee created by

this Indenture to be amended, hypothecated, subordinated, terminated or

discharged, or permit any Person to be released from any covenants or

obligations with respect to the Notes under this Indenture or the Series

Supplement except as may be expressly permitted hereby, (B) permit any lien,

charge, excise, claim, security interest, mortgage or other encumbrance (other

than the lien of this Indenture and the Series Supplement) to be created on or

extend to or otherwise arise upon or burden the Series Trust Estate or any part

 

21

 

thereof or any interest therein or the proceeds

thereof (other than tax liens, mechanics’ liens and other liens that arise by

operation of law, in each case on a Financed Vehicle and arising solely as a

result of an action or omission of the related Obligor), (C) permit the lien of

this Indenture and the Series Supplement not to constitute a valid first

priority (other than with respect to any such tax, mechanics’ or other lien)

security interest in the Series Trust Estate, (D) except as expressly permitted

therein, amend, modify or fail to comply with the provisions of the Basic

Documents or (E) except as expressly permitted therein, amend, modify or

fail to comply with the provisions of the Related Documents.

 

SECTION 3.9                           Annual

Statement as to Compliance.  The

Master Servicer on behalf of the Issuer will deliver to the Indenture Trustee

and the Insurer, within 90 days after the end of each fiscal year of the Issuer

(commencing with the fiscal year ended December 31 in the calendar year in

which the Closing Date occurs), and otherwise in compliance with the

requirements of TIA Section 314(a)(4) an Officer’s Certificate stating, as to

the Authorized Officer signing such Officer’s Certificate, that

 

(i)                                              a

review of the activities of the Issuer during such year and of performance

under this Indenture has been made under such Authorized Officer’s supervision;

and

 

(ii)                                           to

the best of such Authorized Officer’s knowledge, based on such review, the

Issuer has complied with all conditions and covenants under this Indenture and

the Series Supplement throughout such year, or, if there has been a default in

the compliance of any such condition or covenant, specifying each such default

known to such Authorized Officer and the nature and status thereof.

 

SECTION 3.10                    Issuer

May Consolidate, Etc. Only on Certain Terms.

 

(a)                                  The

Issuer shall not consolidate or merge with or into any other Person, unless

 

(i)                                              the

Person (if other than the Issuer) formed by or surviving such consolidation or

merger shall be a Person organized and existing under the laws of the United

States of America or any State and shall expressly assume, by an indenture supplemental

hereto, executed and delivered to the Indenture Trustee and the Insurer (for so

long as it is the Controlling Party), in form satisfactory to the Indenture

Trustee and the Insurer (for so long as it is the Controlling Party), the due

and punctual payment of the principal of and interest on all Notes and the

performance or observance of every agreement and covenant of this Indenture and

the Series Supplement on the part of the Issuer to be performed or observed,

all as provided herein;

 

(ii)                                           immediately

after giving effect to such transaction, no Default or Event of Default shall

have occurred and be continuing under the Series Supplement;

 

22

 

(iii)                                        the

Rating Agency Condition shall have been satisfied with respect to such

transaction;

 

(iv)                                       the

Issuer shall have received an Opinion of Counsel (and shall have delivered

copies thereof to the Indenture Trustee, the Owner Trustee and the Insurer (for

so long as it is the Controlling Party)) to the effect that such transaction

will not have any material adverse tax consequence to the Trust, any

Noteholder, any Certificateholder or the Insurer;

 

(v)                                          any

action as is necessary to maintain the lien and security interest created by

this Indenture and the Series Supplement shall have been taken;

 

(vi)                                       the

Issuer shall have delivered to the Indenture Trustee and the Insurer (for so

long as it is the Controlling Party) an Officer’s Certificate and an Opinion of

Counsel each stating that such consolidation or merger comply with this Article

III and that all conditions precedent herein provided for relating to such

transaction have been complied with (including any filing required by the

Exchange Act); and

 

(vii)                                    such

consolidation or merger is approved in writing by the Insurer (for so long as

it is the Controlling Party).

 

(b)                                 The

Issuer shall not convey or transfer all or substantially all of its properties

or assets, including those included in the Series Trust Estate, to any Person,

unless

 

(i)                                              the

Person that acquires by conveyance or transfer the properties and assets of the

Issuer the conveyance or transfer of which is hereby restricted shall (A) be a

United States citizen or a Person organized and existing under the laws of the

United States of America or any state, (B) expressly assume, by an indenture

supplemental hereto, executed and delivered to the Indenture Trustee and the

Insurer, in form satisfactory to the Indenture Trustee and the Insurer, the due

and punctual payment of the principal of and interest on all Notes and the

performance or observance of every agreement and covenant of this Indenture,

the Series Supplement, each of the Basic Documents and each of the Related

Documents on the part of the Issuer to be performed or observed, all as

provided herein, (C) expressly agree by means of such Indenture Supplement that

all right, title and interest so conveyed or transferred shall be subject and

subordinate to the rights of Holders of the Notes, (D) unless otherwise

provided in such Series Supplement, expressly agree to indemnify, defend and

hold harmless the Issuer against and from any loss, liability or expense

arising under or related to this Indenture, the Series Supplement and the Notes

and (E) expressly agree by means of such Series Supplement that such Person (or

if a group of persons, then one specified Person) shall prepare (or cause to be

prepared) and make all filings with the Commission (and any other appropriate

Person) required by the Exchange Act in connection with the Notes;

 

23

 

(ii)                                           immediately

after giving effect to such transaction, no Default or Event of Default shall

have occurred and be continuing under the Series Supplement;

 

(iii)                                        the

Rating Agency Condition shall have been satisfied with respect to such

transaction;

 

(iv)                                       the

Issuer shall have received an Opinion of Counsel (and shall have delivered

copies thereof to the Indenture Trustee and the Insurer) to the effect that

such transaction will not have any material adverse tax consequence to the

Trust, any Noteholder, any Certificateholder or the Insurer;

 

(v)                                          any

action as is necessary to maintain the lien and security interest created by

this Indenture and the Series Supplement shall have been taken;

 

(vi)                                       the

Issuer shall have delivered to the Indenture Trustee and the Insurer an

Officers’ Certificate and an Opinion of Counsel each stating that such

conveyance or transfer and such Indenture Supplement complies with this Article

III and that all conditions precedent herein provided for relating to such

transaction have been complied with (including any filing required by the

Exchange Act); and

 

(vii)                                    such

conveyance or transfer is approved in writing by the Insurer (for so long as it

is the Controlling Party).

 

SECTION 3.11                    Successor

or Transferee.

 

(a)                                  Upon

any consolidation or merger of the Issuer in accordance with Section 3.10(a),

the Person formed by or surviving such consolidation or merger (if other than

the Issuer) shall succeed to, and be substituted for, and may exercise every

right and power of, the Issuer under this Indenture and the Series Supplement

with the same effect as if such Person had been named as Issuer herein.

 

(b)                                 Upon

a conveyance or transfer of all the assets and properties of the Issuer

pursuant to Section 3.10(b), Household Automotive Trust 2003-1 will be released

from every covenant and agreement of this Indenture and the Series Supplement

to be observed or performed on the part of the Issuer with respect to the Notes

immediately upon the delivery of written notice to the Indenture Trustee and

the Insurer stating that Household Automotive Trust 2003-1 is to be so

released.

 

SECTION 3.12                     No Other

Business.  The Issuer shall not

engage in any business other than financing, purchasing, owning, selling and

managing the Receivables, entering and maintaining any ancillary agreement

related to issuance of the Notes and owning the Class SV Preferred Stock of the

Seller in the manner contemplated by this Indenture, the Basic Documents and

the Series Supplement and all Related Documents and activities incidental

thereto.

 

24

 

SECTION 3.13                    No

Borrowing.  The Issuer shall not

issue, incur, assume, guarantee or otherwise become liable, directly or

indirectly, for any Indebtedness except for (i) the Notes, (ii) obligations

owing from time to time to a Series Support Provider under the related

agreement regarding Series Support, if any and (iii) any other Indebtedness

permitted by or arising under the Basic Documents and the Series

Supplement.  The proceeds of the Notes

and the Certificates of a Series shall be used exclusively to fund the Issuer’s

purchase of the Receivables of such Series, or to obtain release of the lien

relating to the pledge of the Receivables for a prior series of notes issued by

the Issuer, the purchase of related property of the Series Trust Estate, to

fund any trust account and to pay the Issuer’s organizational, transactional

and start-up expenses.

 

SECTION 3.14                     Master

Servicer’s Obligations.  The Issuer

shall enforce the provisions of Sections 4.9, 4.10 and 4.11 of the Master Sale

and Servicing Agreement with respect to the duties of Master Servicer

thereunder.

 

SECTION 3.15                    Guarantees,

Loans, Advances and Other Liabilities. 

Except as contemplated by the Master Sale and Servicing Agreement or

this Indenture or the Series Supplement, the Issuer shall not make any loan or

advance or credit to, or guarantee (directly or indirectly or by an instrument

having the effect of assuring another’s payment or performance on any

obligation or capability of so doing or otherwise), endorse or otherwise become

contingently liable, directly or indirectly, in connection with the

obligations, stocks or dividends of, or own, purchase, repurchase or acquire

(or agree continently to do so) any stock, obligations, assets or securities

of, or any other interest in, or make any capital contribution to, any other

Person.

 

SECTION 3.16                     Capital

Expenditures.  The Issuer shall not

make any expenditure (by long-term or operating lease or otherwise) for capital

assets (either realty or personally).

 

SECTION 3.17                    Compliance

with Laws.  The Issuer shall comply

with the requirements of all applicable laws, the non-compliance with which

would, individually or in the aggregate, materially and adversely affect the

ability of the Issuer to perform its obligations under the Notes, this

Indenture, or any Basic Document, the Series Supplement or any Related

Document.

 

SECTION 3.18                     Restricted

Payments.  The Issuer shall not,

directly or indirectly, (i) pay any dividend or make any distribution (by

reduction of capital or otherwise), whether in cash, property, securities or a

combination thereof, to the Owner Trustee or any owner of a beneficial interest

in the Issuer or otherwise with respect to any ownership or equity interest or

security in or of the Issuer or to the Seller, (ii) redeem, purchase, retire or

otherwise acquire for value any such ownership or equity interest or security

or (iii) set aside or otherwise segregate any amounts for any such purpose; provided,

however, that the Issuer may make, or cause to be made, distributions to

the Seller, Master Servicer, the Owner Trustee, the Indenture Trustee and the

Certificateholders as permitted by, and to the extent funds are available for

such purpose under, the Master Sale and Servicing Agreement or Trust

Agreement.  The Issuer will 

 

25

 

not, directly or

indirectly, make payments to or distributions from the Collection Account

except in accordance with this Indenture, the Basic Documents, the Series

Supplement or any Related Document.

 

SECTION 3.19                     Notice of

Events of Default.  Upon a

Responsible Officer of the Owner Trustee having actual knowledge thereof, the

Issuer agrees to give the Indenture Trustee, the Insurer and the Rating

Agencies prompt written notice of each Event of Default under the Series

Supplement and each default on the part of the Master Servicer or the Seller of

its obligations under the Master Sale and Servicing Agreement.

 

SECTION 3.20                     Further

Instruments and Acts.  Upon request

of the Indenture Trustee or the Insurer (for so long as it is the Controlling

Party), the Issuer will execute and deliver such further instruments and do

such further acts as may be reasonably necessary or proper to carry out more

effectively the purpose of this Indenture.

 

SECTION 3.21                    Amendments

of Master Sale and Servicing Agreement and Trust Agreement.  The Issuer shall not agree to any amendment

to Section 13.1 of the Master Sale and Servicing Agreement or Section 11.1 of

the Trust Agreement to eliminate the requirements thereunder that the Indenture

Trustee, the Insurer or the Holders of the Notes consent to amendments thereto

as provided therein.

 

SECTION 3.22                     Income Tax

Characterization.  For purposes of

federal income, state and local income and franchise and any other income

taxes, the Issuer, the Noteholders and the Certificateholders will treat the

Notes as indebtedness and hereby instruct the Indenture Trustee to treat the

Notes as indebtedness for federal and state tax reporting purposes.

 

ARTICLE IV.

 

Satisfaction and Discharge

 

SECTION 4.1                           Satisfaction

and Discharge of Indenture.  This

Indenture shall cease to be of further effect with respect to the Notes except

as to (i) rights of registration of transfer and exchange, (ii) substitution of

mutilated, destroyed, lost or stolen Notes, (iii) rights of Noteholders to

receive payments of principal thereof and interest thereon, (iv) Sections 3.3,

3.4, 3.5, 3.8, 3.10, 3.12, 3.13, 3.20, 3.21 and 3.22, (v) the rights and

immunities of the Indenture Trustee hereunder (including the rights of the

Indenture Trustee under Section 6.7 and the obligations of the Indenture

Trustee under Section 4.2) and (vi) the rights of the Secured Parties as

beneficiaries hereof with respect to the Series Trust Estate so deposited with

the Indenture Trustee payable to all or any of them, and the Indenture Trustee,

on written demand of and at the expense of the Issuer, shall execute proper

instruments acknowledging satisfaction and discharge of this Indenture with

respect to the Notes, when

 

(A)                                       either

 

26

 

(1)                                  all

Notes theretofore authenticated and delivered (other than (i) Notes that have

been destroyed, lost or stolen and that have been replaced or paid as provided

in Section 2.5 and (ii) Notes for whose payment money has theretofore been

deposited in trust or segregated and held in trust by the Issuer and thereafter

repaid to the Issuer or discharged from such trust, as provided in Section 3.3)

have been delivered to the Indenture Trustee for cancellation and the Series

Support, if any, has been returned to the Series Support Provider; or

 

(2)                                  all

Notes not theretofore delivered to the Indenture Trustee for cancellation

 

(i)                                     have become due

and payable,

 

(ii)                                  will become due and

payable at their respective Final Scheduled Distribution Dates within one year,

or

 

(iii)                               are to be called for

redemption within one year under arrangements satisfactory to the Indenture

Trustee for the giving of notice of redemption by the Indenture Trustee in the

name, and at the expense, of the Issuer,

 

and the Issuer, in the case of (i), (ii) or (iii) above, has

irrevocably deposited or caused to be irrevocably deposited with the Indenture

Trustee cash or direct obligations of or obligations guaranteed by the United

States of America (which will mature prior to the date such amounts are

payable), in trust for such purpose, in an amount sufficient to pay and

discharge the entire indebtedness on such Notes not theretofore delivered to

the Indenture Trustee for cancellation when due on the Final Scheduled

Distribution Date or tender date (if Notes shall have been called for

redemption or tender pursuant to the Series Supplement), as the case may be; and

 

(B)                                         the

Note Policy has terminated in accordance with its terms and the Issuer has paid

or caused to be paid all other amounts owing hereunder or under the Insurance

Agreement by the Issuer.

 

SECTION 4.2                           Application

of Trust Money.  All monies deposited

with the Indenture Trustee pursuant to Section 4.1 hereof shall be held in

trust and applied by it, in accordance with the provisions of the Notes, this

Indenture and the Series Supplement, to the payment, either directly or through

any Note Paying Agent, as the Indenture Trustee may determine, to the Secured

Parties for the payment or redemption of which such monies have been deposited

with the Indenture Trustee, of all sums due and to become due thereon for

principal and interest; but such monies need not be segregated from other funds

except to the extent required herein or in the Master Sale and Servicing

Agreement or required by law.

 

27

 

SECTION 4.3                          Repayment

of Monies Held by Note Paying Agent. 

In connection with the satisfaction and discharge of this Indenture with

respect to the Notes, all monies then held by any Note Paying Agent other than

the Indenture Trustee under the provisions of this Indenture with respect to

such Notes shall, upon demand of the Issuer, be paid to the Indenture Trustee

to be held and applied according to Section 3.3 and thereupon such Note Paying

Agent shall be released from all further liability with respect to such monies.

 

ARTICLE V.

 

Remedies

 

SECTION 5.1                           Events

of Default.  The definition of

“Event of Default” with respect to a Series, together with certain rights and

remedies consequent thereto, shall be set forth in the Series Supplement.

 

SECTION 5.2                          Collection

of Indebtedness and Suits for Enforcement by Indenture Trustee.

 

(a)                                  Subject

to the terms of the Series Supplement, the Issuer covenants that if (i) default

is made in the payment of any interest on any Note when the same becomes due

and payable, and such default continues for a period of five days, or (ii)

default is made in the payment of the principal of or any installment of the

principal of any Note when the same becomes due and payable, and such default

continues for a period of five days, the Issuer will, upon demand of the

Indenture Trustee, pay to it, for the benefit of the Secured Parties, the whole

amount then due and payable on such Notes for principal and interest, with

interest upon the overdue principal, and, to the extent payment at such rate of

interest shall be legally enforceable, upon overdue installments of interest,

at the applicable Note Rate and in addition thereto such further amount as

shall be sufficient to cover the costs and expenses of collection, including

the reasonable compensation, expenses, disbursements and advances of the Indenture

Trustee and its agents and outside counsel.

 

(b)                                 If

an Event of Default occurs and is continuing with respect to a Series, the

Indenture Trustee may in its discretion proceed to protect and enforce the

rights of the Secured Parties by such appropriate Proceedings as the Indenture

Trustee shall deem most effective to protect and enforce any such rights,

whether for the specific enforcement of any covenant or agreement in this

Indenture or the Series Supplement or in aid of the exercise of any power granted

herein, or to enforce any other proper remedy or legal or equitable right

vested in the Indenture Trustee by this Indenture, the Series Supplement or by

law.

 

(c)                                  In

case there shall be pending, relative to the Issuer or any other obligor upon

the Notes or any Person having or claiming an ownership interest in the Series

Trust Estate, proceedings under Title 11 of the United States Code or any other

applicable Federal or state bankruptcy, insolvency or other similar law, or in

case a receiver, assignee or trustee in bankruptcy or reorganization,

liquidator, sequestrator or 

 

28

 

similar official shall have been appointed for or taken possession of

the Issuer or its property or such other obligor or Person, or in case of any

other comparable judicial proceedings relative to the Issuer or other obligor

upon the Notes of such Series, or to the creditors or property of the Issuer or

such other obligor, the Indenture Trustee, irrespective of whether the principal

of any Notes of such Series shall then be due and payable as therein expressed

or by declaration or otherwise and irrespective of whether the Indenture

Trustee shall have made any demand pursuant to the provisions of this Section,

shall be entitled and empowered, by intervention in such proceedings or

otherwise:

 

(i)                                              to

file and prove a claim or claims for the whole amount of principal and interest

owing and unpaid to the Secured Parties and to file such other papers or

documents as may be necessary or advisable in order to have the claims of the

Indenture Trustee against the Series Trust Estate (including any claim for

reasonable compensation to the Indenture Trustee and each predecessor Indenture

Trustee, and their respective agents, attorneys and outside counsel, and for

reimbursement of all expenses and liabilities incurred, and all advances made,

by the Indenture Trustee and each predecessor Indenture Trustee, except as a

result of negligence, bad faith or willful misconduct), of the Insurer and of

the Noteholders allowed in such Proceedings;

 

(ii)                                           unless

prohibited by applicable law and regulations, to vote on behalf of the Secured

Parties of such Series in any election of a trustee, a standby trustee or

person performing similar functions in any such proceedings;

 

(iii)                                        to

collect and receive any monies or other property payable or deliverable on any

such claims and received with respect to the Series Trust Estate and to

distribute all amounts received with respect to the claims of the Secured

Parties and of the Indenture Trustee on their behalf; and

 

(iv)                                       to

file such proofs of claim and other papers or documents as may be necessary or

advisable in order to have the claims of the Indenture Trustee or the Secured

Parties, in each case against the Series Trust Estate allowed in any judicial

proceedings relative to the Issuer, its creditors and its property;

 

and any trustee, receiver, liquidator, custodian or

other similar official in any such proceeding is hereby authorized by the

Secured Parties to make payments to the Indenture Trustee, and, in the event

that the Indenture Trustee shall consent to the making of payments directly to

the Secured Parties, to pay to the Indenture Trustee such amounts as shall be

sufficient to cover reasonable compensation to the Indenture Trustee, each

predecessor Indenture Trustee and their respective agents, attorneys and

counsel, and all other expenses and liabilities incurred, and all advances

made, by the Indenture Trustee and each predecessor Indenture Trustee except as

a result of negligence or bad faith.

 

(d)                                 Nothing

herein contained shall be deemed to authorize the Indenture Trustee to

authorize or consent to or vote for or accept or adopt on behalf of any Secured

Party any plan of reorganization, arrangement, adjustment or composition

 

29

 

affecting the Notes or the rights of any Holder thereof or to authorize

the Indenture Trustee to vote in respect of the claim of any Secured Party in

any such proceeding except, as aforesaid, to vote for the election of a trustee

in bankruptcy or similar person.

 

(e)                                  All

rights of action and of asserting claims under this Indenture, the Series

Supplement or under any of the Notes, may be enforced by the Indenture Trustee

without the possession of any of the Notes or the production thereof in any

trial or other proceedings relative thereto, and any such action or proceedings

instituted by the Indenture Trustee shall be brought in its own name as trustee

of an express trust, and any recovery of judgment, subject to the payment of

the expenses, disbursements and compensation of the Indenture Trustee, each

predecessor Indenture Trustee and their respective agents and attorneys, shall

be for the ratable benefit of the Secured Parties.

 

(f)                                    In

any proceedings brought by the Indenture Trustee (and also any proceedings

involving the interpretation of any provision of this Indenture or the Series

Supplement), the Indenture Trustee shall be held to represent all the Secured

Parties, and it shall not be necessary to make any Secured Party a party to any

such proceedings.

 

SECTION 5.3                          Limitation

of Suits.  No Holder of any Note

shall have any right to institute any proceeding, judicial or otherwise, with

respect to this Indenture or the Series Supplement, or for the appointment of a

receiver or trustee, or for any other remedy hereunder, unless:

 

(i)                                              such

Holder has previously given written notice to the Indenture Trustee of a

continuing Event of Default with respect to the Notes;

 

(ii)                                           the

Holders of not less than 25% of the Outstanding Amount of the Notes have made

written request to the Indenture Trustee to institute such proceeding in

respect of such Event of Default in its own name as Indenture Trustee

hereunder;

 

(iii)                                        such

Holder or Holders have offered to the Indenture Trustee indemnity reasonably

satisfactory to it against the costs, expenses and liabilities to be incurred

in complying with such request;

 

(iv)                                       the

Indenture Trustee for 60 days after its receipt of such notice, request and

offer of indemnity has failed to institute such Proceedings; and

 

(v)                                          no

direction inconsistent with such written request has been given to the

Indenture Trustee during such 60-day period by the Holders of a majority of the

Outstanding Amount of the Notes of such Series.

 

it being understood and intended that no Holders of

Notes shall have any right in any manner whatsoever by virtue of, or by

availing of, any provision of this Indenture to affect, disturb or prejudice

the rights of any other Holders of Notes or to obtain or to seek to obtain

priority or preference over any other Holders or to enforce any right under

this Indenture, except in the manner herein provided.  Nothing herein shall be construed as giving Holders of Notes any

right to make a direct claim under the Note Policy.

 

30

 

SECTION 5.4                                  Unconditional

Rights of Noteholders To Receive Principal and Interest.  Notwithstanding any other provisions in this

Indenture, the Holder of any Note shall have the right, which is absolute and

unconditional, to receive payment of the principal of and interest, if any, on

such Note on or after the respective due dates thereof expressed in such Note

or in this Indenture or the Series Supplement (or, in the case of redemption or

tender pursuant to the Series Supplement, on or after the related redemption or

tender date) and to institute a suit for the enforcement of any such payment,

and such right shall not be impaired without the consent of such Holder.

 

SECTION 5.5                                  Restoration

of Rights and Remedies.  If the

Indenture Trustee, the Insurer or any Noteholder has instituted any Proceeding

to enforce any right or remedy under this Indenture or the Series Supplement

and such Proceeding has been discontinued or abandoned for any reason, then and

in every such case the Issuer, the Indenture Trustee, the Insurer and the

related Noteholders shall, subject to any determination in such Proceeding, be

restored severally and respectively to their former positions hereunder, and

thereafter all rights and remedies of the Indenture Trustee, the Insurer and

the related Noteholders shall continue as though no such proceeding had been

instituted.

 

SECTION 5.6                          Rights

and Remedies Cumulative.  No right

or remedy herein conferred upon or reserved to the Insurer or any Noteholders

is intended to be exclusive of any other right or remedy, and every right and

remedy shall, to the extent permitted by law, be cumulative and in addition to

every other right and remedy given hereunder or now or hereafter existing at

law or in equity or otherwise.  The

assertion or employment of any right or remedy hereunder, or otherwise, shall

not prevent the concurrent assertion or employment of any other appropriate

right or remedy.

 

SECTION 5.7                          Delay

or Omission Not a Waiver.  No delay

or omission of the Indenture Trustee, any Controlling Party or any Holder of

any related Note to exercise any right or remedy accruing upon any Default or

Event of Default shall impair any such right or remedy or constitute a waiver

of any such Default or Event of Default or an acquiescence therein.  Every right and remedy given by this Article

V or by law to the Indenture Trustee, to the Insurer or to any Noteholders may

be exercised from time to time, and as often as may be deemed expedient, by the

Indenture Trustee, by the Insurer or by the related Noteholders, as the case

may be.

 

SECTION 5.8                          Limitation

on Voting of Preferred Stock; Control by Insurer/Noteholders.

 

(a)                                  Notwithstanding

any provision of any Related Document to the contrary, the Indenture Trustee

shall hold the Class SV Preferred Stock in trust for the benefit of the Secured

Parties and shall vote such stock only pursuant to the written instructions of

the Insurer (for so long as it is the Controlling Party) and, if the Insurer is

no longer the Controlling Party, the Holders of a majority of the Outstanding

Amount of the Notes.

 

31

 

(b)                                 The

Controlling Party shall have the right to direct the time, method and place of

conducting any proceeding for any remedy available to the Indenture Trustee

with respect to the Notes of such Series or exercising any trust or power

conferred on the Indenture Trustee; provided that

 

(i)                                              such

direction shall not be in conflict with any rule of law or with this Indenture

or with the Series Supplement; and

 

(ii)                                           the

Indenture Trustee may take any other action deemed proper by the Indenture

Trustee that is not inconsistent with such direction;

 

provided, however, that,

subject to Section 6.1, the Indenture Trustee need not take any action that it

determines might involve it in liability or might materially adversely affect

the rights of any Noteholders not consenting to such action.

 

SECTION 5.9                          Waiver

of Past Defaults.  The Controlling

Party may waive any Default or Event of Default relating to the Notes and its

consequences except a Default (a) in payment of principal of or interest on any

of the Notes or (b) in respect of a covenant or provision hereof which cannot

be modified or amended without the consent of the Holder of each Note.  In the case of any such waiver, the Issuer,

the Indenture Trustee, the Insurer and the Holders of the Notes shall be

restored to their former positions and rights hereunder, respectively; but no

such waiver shall extend to any subsequent or other Default or impair any right

consequent thereto.

 

Upon any such waiver, such Default shall cease to

exist and be deemed to have been cured and not to have occurred, and any Event

of Default arising therefrom shall be deemed to have been cured and not to have

occurred, for every purpose of this Indenture and the Series Supplement; but no

such waiver shall extend to any subsequent or other Default or Event of Default

or impair any right consequent thereto.

 

SECTION 5.10                    Undertaking

for Costs.  All parties to this

Indenture and the Series Supplement agree, and each Holder of any Note by such

Holder’s acceptance thereof shall be deemed to have agreed, that any court may

in its discretion require, in any suit for the enforcement of any right or

remedy under this Indenture and the Series Supplement, or in any suit against

the Indenture Trustee for any action taken, suffered or omitted by it as

Indenture Trustee, the filing by any party litigant in such suit of an

undertaking to pay the costs of such suit, and that such court may in its

discretion assess reasonable costs, including reasonable attorneys’ fees,

against any party litigant in such suit, having due regard to the merits and

good faith of the claims or defenses made by such party litigant; but the

provisions of this Section shall not apply to (a) any suit instituted by the

Indenture Trustee, (b) any suit instituted by the Insurer, (c) any suit

instituted by any Noteholder, or group of Noteholders, in each case holding in

the aggregate more than 10% of the Outstanding Amount of the Notes or (d) any

suit instituted by any Noteholder for the enforcement of the payment of

principal of or interest on any Note on or after the respective due dates

expressed in such Note and in this Indenture and the Series Supplement.

 

32

 

SECTION 5.11                     Waiver of

Stay or Extension Laws.  The Issuer

covenants (to the extent that it may lawfully do so) that it will not at any

time insist upon, or plead or in any manner whatsoever, claim or take the

benefit of, any stay or extension law wherever enacted, now or at any time

hereafter in force, that may affect the covenants or the performance of this

Indenture and the Series Supplement; and the Issuer (to the extent that it may

lawfully do so) hereby expressly waives all benefit of any such law, and

covenants that it will not hinder, delay or impede the execution of any power

herein granted to the Indenture Trustee or the Insurer, but will suffer and

permit the execution of every such power as though no such law had been

enacted.

 

SECTION 5.12                     Action on

Notes.  The Indenture Trustee’s

right to seek and recover judgment on the Notes or under this Indenture or the

Series Supplement shall not be affected by the seeking, obtaining or

application of any other relief under or with respect to this Indenture or the

Series Supplement.  Neither the lien of

this Indenture or the Series Supplement nor any rights or remedies of the Indenture

Trustee, the Insurer or the Noteholders shall be impaired by the recovery of

any judgment by the Indenture Trustee or the Insurer against the Issuer or by

the levy of any execution under such judgment upon any portion of the Series

Trust Estate or upon any of the assets of the Issuer.

 

SECTION 5.13                    Performance

and Enforcement of Certain Obligations.

 

(a)                                  Promptly

following a request from the Indenture Trustee or the Insurer (for so long as

it is the Controlling Party) to do so and at the Master Servicer’s expense, the

Issuer agrees to take all such lawful action as the Indenture Trustee or the

Insurer (for so long as it is the Controlling Party) may request to compel or

secure the performance and observance by the Seller and the Master Servicer, as

applicable, of each of their obligations to the Issuer under or in connection

with the Master Sale and Servicing Agreement in accordance with the terms

thereof, and to exercise any and all rights, remedies, powers and privileges

lawfully available to the Issuer under or in connection with the Master Sale

and Servicing Agreement to the extent and in the manner directed by the

Indenture Trustee or the Insurer (for so long as it is the Controlling Party),

including the transmission of notices of default on the part of the Seller or

the Master Servicer thereunder and the institution of legal or administrative

actions or proceedings to compel or secure performance by the Seller or the

Master Servicer of each of their obligations under the Master Sale and

Servicing Agreement.

 

(b)                                 If

an Event of Default has occurred and is continuing, or, if at such time as

there are no Notes Outstanding there remain sums due to the Insurer pursuant to

the Insurance Agreement, the Indenture Trustee may, with the consent of the

Insurer (for so long as it is the Controlling Party) and shall, at the written

direction of the Insurer (for so long as it is the Controlling Party) or, if

the Insurer is not the Controlling Party, at the written direction of the

Holders of 66-2/3% of the Outstanding Amount of the Notes, exercise all rights,

remedies, powers, privileges and claims of the Issuer against the Seller or the

Master Servicer under or in connection with the Master Sale and Servicing

Agreement, including the right or power to take any action to compel or secure

performance or observance by the Seller or the Master Servicer of each of their

 

33

 

obligations to the Issuer thereunder and to give any consent, request,

notice, direction, approval, extension or waiver under the Master Sale and

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

suspended.

 

ARTICLE VI.

 

The Indenture Trustee

 

SECTION 6.1                          Duties

of Indenture Trustee.

 

(a)                                  If

an Event of Default has occurred and is continuing of which a Responsible Officer

of the Indenture Trustee has actual knowledge, the Indenture Trustee shall

exercise the rights and powers vested in it by this Indenture and the Basic

Documents and use the same degree of care and skill in its exercise as a

prudent person would exercise or use under the circumstances in the conduct of

such person’s own affairs.

 

(b)                                 Except

during the continuance of an Event of Default with respect to a Series of which

a Responsible Officer of the Indenture Trustee has actual knowledge:

 

(i)                                              the

Indenture Trustee undertakes to perform with respect to such Series such duties

and only such duties as are specifically set forth in this Indenture and the

Series Supplement and no implied covenants or obligations shall be read into

this Indenture or the Series Supplement against the Indenture Trustee; and

 

(ii)                                           in

the absence of bad faith on its part, the Indenture Trustee may conclusively

rely, as to the truth of the statements and the correctness of the opinions

expressed therein, upon certificates or opinions furnished to the Indenture

Trustee as the case may be and conforming to the requirements of this Indenture

and the Series Supplement; however, the Indenture Trustee shall examine the

certificates and opinions to determine whether or not they conform on their

face to the requirements of this Indenture or the Series Supplement provided,

further, that the Indenture Trustee shall not be responsible for the accuracy

or content of any resolution, certificate, statement, opinion, report,

document, order or other instrument furnished to it, including, without

limitation, any statistical, numerical or financial data contained therein.

 

(c)                                  The

Indenture Trustee may not be relieved from liability for its own negligent

action, its own negligent failure to act or its own willful misconduct, except

that:

 

(i)                                              this

paragraph does not limit the effect of paragraph (b) of this Section;

 

(ii)                                           the

Indenture Trustee shall not be liable for any error of judgment made in good

faith by a Responsible Officer unless it is proven that the Indenture Trustee

was negligent in ascertaining the pertinent facts; and

 

34

 

(iii)                                        the

Indenture Trustee shall not be liable with respect to any action it takes or

omits to take in good faith in accordance with a direction received by it

pursuant to Section 5.8.

 

(d)                                 The

Indenture Trustee shall not be liable for interest on any money received by it

except as such Person may agree in writing with the Issuer.

 

(e)                                  Money

held in trust by the Indenture Trustee need not be segregated from other funds

except to the extent required by law or the terms of this Indenture, the Series

Supplement or the Master Sale and Servicing Agreement.

 

(f)                                    No

provision of this Indenture or the Series Supplement shall require the

Indenture Trustee to expend or risk its own funds or otherwise incur financial

liability in the performance of any of its duties hereunder or in the exercise

of any of its rights or powers, if it shall have reasonable grounds to believe

that repayment of such funds or indemnity reasonably satisfactory to it against

such risk or liability is not reasonably assured to it.

 

(g)                                 Every

provision of this Indenture and the Series Supplement relating to the conduct

or affecting the liability of or affording protection to the Indenture Trustee

shall be subject to the provisions of this Section and to the provisions of the

TIA.

 

(h)                                 The

Indenture Trustee shall, and hereby agrees that it will, perform all of the

obligations and duties required of it under each Related Document to which it

is a party.

 

(i)                                     Without

limiting the generality of this Section 6.1, the Indenture Trustee shall have

no duty (i) to see to any recording, filing or depositing of this Indenture,

the Series Supplement or any agreement referred to herein or any financing

statement evidencing a security interest in the Financed Vehicles, or to see to

the maintenance of any such recording or filing or depositing or to any

recording, refiling or redepositing of any thereof, (ii) to see to any insurance

of the Financed Vehicles or Obligors or to effect or maintain any such

insurance, (iii) to see to the payment or discharge of any tax, assessment or

other governmental charge or any Lien or encumbrance of any kind owing with

respect to, assessed or levied against any part of the Trust, (iv) to confirm

or verify the contents of any reports or certificates delivered to the

Indenture Trustee pursuant to this Indenture, the Series Supplement or the

Master Sale and Servicing Agreement believed by the Indenture Trustee to be

genuine and to have been signed or presented by the proper party or parties, or

(v) to inspect the Financed Vehicles at any time or ascertain or inquire as to

the performance or observance of any of the Issuer’s, the Seller’s or the Master

Servicer’s representations, warranties or covenants or the Master Servicer’s

duties and obligations as Master Servicer and as custodian of the Receivable

Files under the Master Sale and Servicing Agreement.

 

(j)                                     In

no event shall the Indenture Trustee, in any of its capacities hereunder, be

deemed to have assumed any duties of the Owner Trustee under the Delaware

Statutory Trust Statute, common law, or the Trust Agreement.

 

35

SECTION 6.2                          Rights

of Indenture Trustee.

 

(a)                                  The

Indenture Trustee may rely on any document believed by it to be genuine and to

have been signed or presented by the proper person.  The Indenture Trustee need not investigate any fact or matter

stated in the document.

 

(b)                                 Before

the Indenture Trustee acts or refrains from acting, it may require an Officer’s

Certificate and/or an Opinion of Counsel. 

The Indenture Trustee shall not be liable for any action it takes or

omits to take in good faith in reliance on the Officer’s Certificate and/or

Opinion of Counsel.

 

(c)                                  The

Indenture Trustee may execute any of the trusts or powers hereunder or perform

any duties hereunder either directly or by or through agents or attorneys or a

custodian or nominee, and the Indenture Trustee shall not be responsible for

any misconduct or negligence on the part of, or for the supervision of the

Master Servicer or any other agent, attorney, custodian or nominee appointed

with due care by it hereunder.

 

(d)                                 The

Indenture Trustee shall not be liable for any action it takes or omits to take

in good faith which it believes to be authorized or within its rights or

powers; provided, however, that the Indenture Trustee’s conduct

does not constitute willful misconduct, negligence or bad faith.

 

(e)                                  The

Indenture Trustee may consult with counsel, and the advice or opinion of

counsel with respect to legal matters relating to this Indenture, the Basic

Documents, the Series Supplement, any Related Documents and the Notes and such

advice or opinion of counsel shall be full and complete authorization and

protection from liability in respect to any action taken, omitted or suffered

by it hereunder in good faith and in accordance with the advice or opinion of

such counsel.

 

(f)                                    The

Indenture Trustee shall be under no obligation to institute, conduct or defend

any litigation under this Indenture or the Series Supplement or in relation to

this Indenture or the Series Supplement, at the request, order or direction of

any of the Holders of Notes or the Insurer (for so long as it is the

Controlling Party), pursuant to the provisions of this Indenture or the Series

Supplement, unless such Holders of Notes or the Insurer shall have offered to

the Indenture Trustee reasonable security or indemnity against the costs,

expenses and liabilities that may be incurred therein or thereby; provided,

however, that the Indenture Trustee shall, upon the occurrence of an

Event of Default (that has not been cured), exercise the rights and powers

vested in it by this Indenture and the Series Supplement with reasonable care

and skill customary for the care and skill exercised by Indenture Trustees

under similar circumstances.

 

(g)                                 The

Indenture Trustee shall not be bound to make any investigation into the facts

or matters stated in any resolution, certificate, statement, instrument,

opinion, report, notice, request, consent, order, approval, bond or other paper

or document, unless requested in writing to do by the Insurer (for so long as

it is the Controlling Party); provided, however, that if the

payment within a reasonable time to the 

 

36

 

Indenture Trustee of the costs, expenses or liabilities likely to be

incurred by it in the making of such investigation is, in the opinion of the

Indenture Trustee not reasonably assured to the Indenture Trustee by the

security afforded to it by the terms of this Indenture, the Series Supplement

or the Master Sale and Servicing Agreement, the Indenture Trustee may require

indemnity reasonably satisfactory to it against such cost, expense or liability

as a condition to so proceeding; the reasonable expense of every such

examination shall be paid by the Person making such request.

 

(h)                                 The

right of the Indenture Trustee to perform any discretionary act enumerated in

this Indenture shall not be construed as a duty, and the Indenture Trustee

shall not be answerable for other than its negligence or willful misconduct in

the performance of such act.

 

(i)                                     The

Indenture Trustee shall not be required to give any bond or surety in respect

of the execution of the Trust Estate created hereby or the powers granted

hereunder.

 

(j)                                     Anything

in this Indenture or any supplement hereto to the contrary notwithstanding, in

no event shall the Indenture Trustee be liable for special, indirect or consequential

loss or damage of any kind whatsoever (including but not limited to lost

profits), even if the Indenture Trustee has been advised of the likelihood of

such loss or damage and regardless of the form of action.

 

(k)                                  The

Indenture Trustee shall not be required to take notice or be deemed to have

notice or knowledge of any default, Event of Default or Master Servicer

Termination Event unless a Responsible Officer of the Indenture Trustee shall

have actual notice thereof.

 

(l)                                     The

Indenture Trustee shall not in any way be held liable by reason of any

insufficiency in any Trust Account (including, without limitation, the Reserve

Account and the Collection Account or any subaccount thereof) held by or on

behalf of the Indenture Trustee resulting from any investment loss on any

Eligible Investment included therein.

 

SECTION 6.3                           Individual

Rights of Indenture Trustee.  The

Indenture Trustee in its individual or any other capacity may become the owner

or pledgee of Notes and may otherwise deal with the Issuer or its Affiliates

with the same rights it would have if it were not Indenture Trustee.  Any Note Paying Agent, Note Registrar,

co-registrar or co-paying agent may do the same with like rights.  However, the Indenture Trustee must comply

with Sections 6.11 and 6.12.

 

SECTION 6.4                          Indenture

Trustee’s Disclaimer.  The Indenture

Trustee shall not be responsible for and makes no representation as to the

validity or adequacy of this Indenture, the Series Supplement, the Series Trust

Estate or the Notes, it shall not be accountable for the Issuer’s use of the

proceeds from the Notes, and it shall not be responsible for any statement of

the Issuer in the Indenture, in the Series Supplement or 

 

37

 

in any document issued in connection with the sale of

the Notes or in the Notes other than the Indenture Trustee’s certificate of

authentication.

 

SECTION 6.5                           Notice

of Defaults.  If an Event of Default

occurs and is continuing and if it is either actually known by, or written

notice of the existence thereof has been delivered to, a Responsible Officer of

the Indenture Trustee, the Indenture Trustee shall promptly notify the Insurer

in writing and mail to each Noteholder notice of the Default within 90 days

after such knowledge or notice occurs. 

Except in the case of a Default in payment of principal of or interest

on any Note, the Indenture Trustee may withhold the notice to Noteholders if

and so long as a committee of its Responsible Officers in good faith determines

that withholding the notice is in the interests of Noteholders.

 

SECTION 6.6                           Reports

by Master Servicer to Holders.  Upon

the written request of any Noteholder, the Master Servicer shall on behalf of

the Issuer deliver to the Indenture Trustee for distribution to any Noteholder

such information as may be reasonably required by such Noteholder to enable

such Noteholder to prepare its Federal and state income tax returns required by

law.

 

SECTION 6.7                          Compensation

and Indemnity.

 

(a)                                  As

payable in the Series Supplement, the Issuer shall, or shall cause the Master

Servicer to, pay to the Indenture Trustee from time to time the Indenture

Trustee Fee as compensation for its services. 

The Indenture Trustee’s compensation shall not be limited by any law on

compensation of a trustee of an express trust. 

The Issuer shall or shall cause the Master Servicer to reimburse the

Indenture Trustee for all reasonable out-of-pocket expenses incurred or made by

it, including costs of collection, in addition to the compensation for its

services.  Such expenses shall include

the reasonable compensation and expenses, disbursements and advances of the

Trustee’s agents, outside counsel, accountants and experts.  The Issuer shall or shall cause the Master

Servicer to indemnify the Indenture Trustee, and its respective officers,

directors, employees and agents against any and all loss, liability or expense

(including attorneys’ fees and expenses) incurred by each of them in connection

with the acceptance or the administration of this trust and the performance of

its duties hereunder.  The Indenture

Trustee shall notify the Issuer and the Master Servicer promptly of any claim

for which it may seek indemnity.  Failure

by the Indenture Trustee to so notify the Issuer and the Master Servicer shall

not relieve the Issuer of its obligations hereunder or the Master Servicer of

its obligations under Article XII of the Master Sale and Servicing

Agreement.  The Issuer shall defend or

shall cause the Master Servicer to defend any claim for indemnity that may

arise against the Indenture Trustee, or the Indenture Trustee may have separate

counsel and the Issuer shall or shall cause the Master Servicer to pay the fees

and expenses of such counsel.  Neither

the Issuer nor the Master Servicer need reimburse any expense or indemnify

against any loss, liability or expense incurred by the Indenture Trustee

through such Person’s own willful misconduct, negligence or bad faith.

 

(b)                                 The

Issuer’s payment obligations to the Indenture Trustee pursuant to this Section shall

survive the resignation or removal of the Indenture Trustee and the

 

38

 

discharge of this Indenture. 

When the Indenture Trustee incurs expenses after the occurrence of an

Insolvency Event with respect to the Issuer, the expenses are intended to

constitute expenses of administration under Title 11 of the United States Code

or any other applicable Federal or state bankruptcy, insolvency or similar

law.  Notwithstanding anything else set

forth in this Indenture, the Basic Documents, the Series Supplement or any

Related Documents, the Indenture Trustee agrees that the obligations of the

Issuer (but not the Master Servicer) to the Indenture Trustee hereunder and

under the Series Supplement or any Related Documents, shall be recourse to the

Series Trust Estate only and specifically shall not be recourse to the assets

of any Securityholder.  In addition, the

Indenture Trustee agrees that its recourse to the Issuer, the Series Trust

Estate, the Seller and amounts held pursuant to the Series Support shall be

limited to the right to receive the distributions as provided for in the

payment priority provisions of the Series Supplement.

 

SECTION 6.8                           Replacement

of Indenture Trustee.  The Indenture

Trustee may, and in the circumstances specified in subparagraph (i) shall,

resign at any time upon 60 days’ prior written notice by so notifying the

Issuer, the Insurer, Holders of a majority of Outstanding Amount of the Notes

and the Master Servicer.  In addition,

the Master Servicer may remove the Indenture Trustee by so notifying the

Indenture Trustee with the consent of the Insurer (for so long as it is the

Controlling Party) upon 60 days’ written notice.  The Issuer may, with the consent of the Insurer (for so long as

it is the Controlling Party) and shall, at the direction of the Insurer (for so

long as it is the Controlling Party) or the Noteholders, remove the Indenture

Trustee, if:

 

(i)                                              the

Indenture Trustee fails to comply with Section 6.11;

 

(ii)                                           a

court having jurisdiction in the premises in respect of the Indenture Trustee

in an involuntary case or proceeding under Federal or state banking or

bankruptcy laws, as now or hereafter constituted, or any other applicable

Federal or state bankruptcy, insolvency or other similar law, shall have

entered a decree or order granting relief or appointing a receiver, liquidator,

assignee, custodian, trustee, conservator, sequestrator (or similar official)

for the Indenture Trustee or for any substantial part of the Indenture Trustee’s

property, or ordering the winding-up or liquidation of the Indenture Trustee’s

affairs;

 

(iii)                                        an

involuntary case under the Federal bankruptcy laws, as now or hereafter in

effect, or another present or future Federal or state bankruptcy, insolvency or

similar law is commenced with respect to the Indenture Trustee and such case is

not dismissed within 60 days;

 

(iv)                                       the

Indenture Trustee commences a voluntary case under any Federal or state banking

or bankruptcy laws, as now or hereafter constituted, or any other applicable

federal or state bankruptcy, insolvency or other similar law, or consents to

the appointment of or taking possession by a receiver, liquidator, assignee,

custodian, trustee, conservator, sequestrator (or other similar official) for the

Indenture Trustee or for any substantial part of the Indenture Trustee’s

property, or makes any assignment for the benefit of creditors or fails

generally to 

 

39

 

pay its debts as such

debts become due or takes any corporate action in furtherance of any of the

foregoing;

 

(v)                                          the

Indenture Trustee otherwise becomes incapable of acting; or

 

(vi)                                       the

rating assigned to the long-term unsecured debt obligations of the Indenture

Trustee by the Rating Agencies shall be lowered below the rating of “BBB”,

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

 

If the Indenture Trustee resigns or is removed or if a

vacancy exists in the office of Indenture Trustee for any reason (the Indenture

Trustee in such event being referred to herein as the retiring Indenture

Trustee), the Issuer shall promptly deliver a written notice of such removal,

resignation or vacancy to the Master Servicer and the Insurer, and the Master

Servicer may appoint a successor Indenture Trustee with the consent of the

Insurer (for so long as it is the Controlling Party).  If the Master Servicer fails to appoint such a successor

Indenture Trustee, the Issuer, the Insurer (for so long as it is the

Controlling Party) or a resigning Indenture Trustee may petition any court of

competent jurisdiction to appoint a successor Indenture Trustee.  If the Indenture Trustee resigns or is

removed, the Indenture Trustee shall also resign or be removed, as the case may

be, as Note Paying Agent, Note Registrar and Certificate Paying Agent.

 

A successor Indenture Trustee shall deliver a written

acceptance of its appointment to the retiring Indenture Trustee, to the Insurer

and to the Issuer.  Thereupon the

resignation or removal of the retiring Indenture Trustee shall become

effective, and the successor Indenture Trustee shall have all the rights,

powers and duties of the retiring Indenture Trustee under the Basic

Documents.  The successor Indenture Trustee

shall mail a notice of its succession to Noteholders.  The retiring Indenture Trustee shall promptly transfer all

property held by it as Indenture Trustee to the successor Indenture Trustee.

 

If the Indenture Trustee fails to comply with Section

6.11, any Noteholder or the Insurer (for so long as it is the Controlling

Party) may petition any court of competent jurisdiction for the removal of the

Indenture Trustee and the appointment of a successor Indenture Trustee.

 

Notwithstanding the replacement of the Indenture

Trustee pursuant to this Section, the Issuer’s and the Master Servicer’s

obligations under Section 6.7 shall continue for the benefit of the retiring

Indenture Trustee.

 

SECTION 6.9                          Successor

Indenture Trustee by Merger.  If the

Indenture Trustee consolidates with, merges or converts into, or transfers all

or substantially all its corporate trust business or assets to, another

corporation or banking association, the resulting, surviving or transferee

entity without any further act shall be the successor Indenture Trustee; provided

that such corporation or banking association shall otherwise be eligible under

Section 6.11 hereof.  The Indenture

Trustee shall 

 

40

 

provide the Rating Agencies and the Insurer with

written notice of any such transaction as soon as practical thereafter.

 

In case at the time such successor or successors by

merger, conversion or consolidation to the Indenture Trustee shall succeed to

the trusts created by this Indenture any of the Notes shall have been authenticated

but not delivered, any such successor to the Indenture Trustee may adopt the

certificate of authentication of any predecessor trustee, and deliver such

Notes so authenticated; and in case at that time any of the Notes shall not

have been authenticated, any successor to the Indenture Trustee may

authenticate such Notes either in the name of any predecessor hereunder or in

the name of the successor to the Indenture Trustee; and in all such cases such

certificates shall have the full force which it is anywhere in the Notes or in

this Indenture provided that the certificate of the Indenture Trustee shall

have.

 

SECTION 6.10                    Appointment

of Co-Indenture Trustee or Separate Indenture Trustee.

 

(a)                                  

Notwithstanding any other provisions of this Indenture, at any time, for the

purpose of meeting any legal requirement of any jurisdiction in which any part

of the Trust may at the time be located, the Indenture Trustee, with the

consent of the Insurer (for so long as it is the Controlling Party), shall have

the power and may execute and deliver all instruments to appoint one or more

Persons to act as a co-trustee or co-trustees, or separate trustee or separate

trustees, of all or any part of the Series Trust Estate, and to vest in such

Person or Persons, in such capacity and for the benefit of the Secured Parties,

such title to the Series Trust Estate, or any part hereof, and, subject to the

other provisions of this Section, such powers, duties, obligations, rights and

trusts as the Indenture Trustee may consider necessary or desirable.  No co-trustee or separate trustee hereunder

shall be required to meet the terms of eligibility as a successor trustee under

Section 6.11 and no notice to Noteholders of the appointment of any co-trustee

or separate trustee shall be required under Section 6.8 hereof.  The cost and expense of such co-trustee or

co-trustees, and/or separate trustee or separate trustees, shall be a cost and

expense of the Indenture Trustee pursuant to Section 3.03(a)(ii) of the Series

Supplement.

 

(b)                                 Every

separate trustee and co-trustee shall, to the extent permitted by law, be

appointed and act subject to the following provisions and conditions:

 

(i)                                              all

rights, powers, duties and obligations conferred or imposed upon the Indenture

Trustee shall be conferred or imposed upon and exercised or performed by the

Indenture Trustee and such separate trustee or co-trustee jointly (it being

understood that such separate trustee or co-trustee is not authorized to act

separately without the Indenture Trustee joining in such act), except to the

extent that under any law of any jurisdiction in which any particular act or

acts are to be performed the Indenture Trustee shall be incompetent or

unqualified to perform such act or acts, in which event such rights, powers, duties

and obligations (including the holding of title to the Trust or any portion

thereof in any such jurisdiction) shall be exercised and performed singly by

such separate trustee or co-trustee, but solely at the direction of the

Indenture Trustee;

 

41

 

(ii)                                           no

trustee hereunder shall be personally liable by reason of any act or omission

of any other trustee hereunder, including acts or omissions of predecessor or

successor trustees; and

 

(iii)                                        the

Indenture Trustee may at any time accept the resignation of or remove any

separate trustee or co-trustee.

 

(c)                                  Any

notice, request or other writing given to the Indenture Trustee shall be deemed

to have been given to each separate trustee and co-trustee, as effectively as

if given to each of them.  Every

instrument appointing any separate trustee or co-trustee shall refer to this

Indenture and the conditions of this Article VI.  Each separate trustee and co-trustee, upon its acceptance of the

trusts conferred, shall be vested with the estates or property specified in its

instrument of appointment, either jointly with the Indenture Trustee or

separately, as may be provided therein, subject to all the provisions of this

Indenture, specifically including every provision of this Indenture relating to

the conduct of, affecting the liability of, or affording protection to, the

Indenture Trustee.  Every such

instrument shall be filed with the Indenture Trustee.

 

(d)                                 Any

separate trustee or co-trustee may at any time constitute the Indenture

Trustee, its agent or attorney-in-fact with full power and authority, to the

extent not prohibited by law, to do any lawful act under or in respect of this

Indenture on its behalf and in its name. 

If any separate trustee or co-trustee shall die, dissolve, become

insolvent, become incapable of acting, resign or be removed, all of its

estates, properties, rights, remedies and trusts shall vest in and be exercised

by the Indenture Trustee, to the extent permitted by law, without the appointment

of a new or successor trustee.

 

SECTION 6.11                            Eligibility:

Disqualification.  The Indenture

Trustee shall at all times:  satisfy TIA

§ 310(a), have a combined capital and surplus of at least $50,000,000 as

set forth in its most recent published annual report of condition, and have a

long-term debt rating of at least “BBB”, “Baa2” or equivalent rating from each

of the Rating Agencies.  The Indenture

Trustee shall comply with TIA § 310(b), including the optional provision

permitted by the second sentence of TIA § 310(b)(9); provided, however,

that there shall be excluded from the operation of TIA § 310(b)(1) any

indenture or indentures under which other securities of the Issuer are

outstanding if the requirements for such exclusion set forth in TIA

§ 310(b)(1) are met.

 

SECTION 6.12                            Preferential

Collection of Claims Against Issuer. 

The Indenture Trustee shall comply with TIA § 311(a), excluding any

creditor relationship listed in TIA § 311(b).  An Indenture Trustee who has resigned or been removed shall be subject

to TIA § 311(a) to the extent indicated.

 

SECTION 6.13                            Representations

and Warranties of the Indenture Trustee. 

The Indenture Trustee represents and warrants to the Issuer as follows:

 

(a)                                  Due

Organization.                    The

Indenture Trustee is a national banking association, duly organized, validly

existing and in good standing under the laws of the 

 

42

 

United States and is duly authorized and licensed

under applicable law to conduct its business as presently conducted.

 

(b)                                 Corporate

Power.  The Indenture Trustee has

all requisite right, power and authority to execute and deliver this Indenture,

the Series Supplement and any other Related Document to which it is a party and

to perform all of its duties as the Indenture Trustee hereunder.

 

(c)                                  Due

Authorization.  The execution and

delivery by the Indenture Trustee of this Indenture, the Series Supplement and

any other Related Documents to which it is a party, and the performance by the

Indenture Trustee of its duties hereunder and thereunder, have been duly

authorized by all necessary corporate proceedings which are required for the

valid execution and delivery by the Indenture Trustee, or the performance by

the Indenture Trustee, of this Indenture, the Series Supplement and such other

Related Documents.

 

(d)                                 Valid

and Binding Indenture.  The

Indenture Trustee has duly executed and delivered this Indenture, the Series

Supplement and each other Related Document to which it is a party, and each of

this Indenture, the Series Supplement and each other Related Document

constitutes the legal, valid and binding obligation of the Indenture Trustee

enforceable against the Indenture Trustee in accordance with its terms, except

as (i) such enforceability may be limited by bankruptcy, insolvency,

reorganization and similar laws relating to or affecting the enforcement of

creditors’ rights generally and (ii) the availability of equitable remedies may

be limited by equitable principles of general applicability.

 

SECTION 6.14                            Waiver

of Setoffs.  The Indenture Trustee

hereby expressly waives any and all rights of setoff that the Indenture Trustee

may otherwise at any time have under applicable law with respect to any Trust

Account and agrees that amounts in the Trust Accounts shall at all times be

held and applied solely in accordance with the provisions hereof.

 

SECTION 6.15                            No

Consent to Certain Acts of Seller. 

The Seller shall not request that the Indenture Trustee consent to, nor

shall the Indenture Trustee consent to any action proposed to be taken by the

Seller pursuant to Article FIFTEENTH of the Seller’s Articles of Incorporation.

 

ARTICLE VII.

 

Noteholders’ Lists and Reports

 

SECTION 7.1                          Issuer

To Furnish To Indenture Trustee Names and Addresses of Noteholders.  The Issuer will furnish or cause to be

furnished to the Indenture Trustee with respect to each Series of Notes (a) not

more than five days after the earlier of (i) each Record Date with respect to

such Series and (ii) three months after the last Record Date, a list, in such

form as the Indenture Trustee may reasonably require, of the names and

addresses of the Holders with respect to such Series as of such Record 

 

43

 

Date, (b) at such other times as the Indenture Trustee

may request in writing, within 30 days after receipt by the Issuer of any such

request, a list of similar form and content as of a date not more than 10 days

prior to the time such list is furnished; provided, however, that

so long as the Indenture Trustee is the Note Registrar, no such list shall be

required to be furnished.

 

SECTION 7.2                                  Preservation

of Information; Communications to Noteholders.  The Indenture Trustee shall preserve, in as current a form as is

reasonably practicable, the names and addresses of the Holders contained in the

most recent list furnished to the Indenture Trustee as provided in Section 7.1

and the names and addresses of Holders received by the Indenture Trustee in its

capacity as Note Registrar.  The

Indenture Trustee may destroy any list furnished to it as provided in such

Section 7.1 upon receipt of a new list so furnished.

 

(a)                                  Noteholders

may communicate pursuant to TIA § 312(b) with other Noteholders with

respect to their rights under this Indenture or under the Notes.

 

(b)                                 The

Issuer, the Indenture Trustee and the Note Registrar shall have the protection

of TIA § 312(c).

 

SECTION 7.3                          Reports

by Issuer.

 

(a)                                  If

this Indenture is qualified under the TIA, the Issuer shall:

 

(i)                                              file

with the Indenture Trustee, within 15 days after the Issuer is required to file

the same with the Commission, copies of the annual reports and copies of the

information, documents and other reports (or copies of such portions of any of

the foregoing as the Commission may from time to time by rules and regulations

prescribe) which the Issuer may be required to file with the Commission

pursuant to Section 13 or 15(d) of the Exchange Act;

 

(ii)                                           file

with the Indenture Trustee and the Commission in accordance with rules and

regulations prescribed from time to time by the Commission such additional

information, documents and reports with respect to compliance by the Issuer

with the conditions and covenants of this Indenture as may be required from

time to time by such rules and regulations; and

 

(iii)                                        supply

to the Indenture Trustee (and the Indenture Trustee shall transmit by mail to

all Noteholders described in TIA § 313(c)) such summaries of any

information, documents and reports required to be filed by the Issuer pursuant

to clauses (i) and (ii) of this Section 7.3(a) as may be required by rules and

regulations prescribed from time to time by the Commission.

 

(b)                                 Unless

the Issuer otherwise determines, the fiscal year of the Issuer shall end on

December 31 of each year.

 

(c)                                  The

Indenture Trustee shall not have any duty or obligation with respect to any

reports or other information delivered to it pursuant to this Section 7.3.

 

44

 

SECTION 7.4                                  Reports

by Indenture Trustee.  If required

by TIA § 313(a), within 60 days after each March 31 beginning with March

31, 2004 the Indenture Trustee shall mail to each Noteholder as required by TIA

§ 313(c) a brief report dated as of such date that complies with TIA

§ 313(a).  The Indenture Trustee

also shall comply with TIA § 313(b).

 

A copy of each report at the time of its mailing to

Noteholders shall be filed by the Indenture Trustee with the Commission and

each stock exchange, if any, on which the Notes are listed.  The Issuer shall notify the Indenture

Trustee if and when the Notes are listed on any stock exchange.

 

ARTICLE VIII.

 

Accounts, Disbursements and Releases

 

SECTION 8.1                                  Collection

of Money.  Except as otherwise

expressly provided herein, the Indenture Trustee may demand payment or delivery

of, and shall receive and collect, directly and without intervention or

assistance of any fiscal agent or other intermediary, all money and other

property payable to or receivable by the Indenture Trustee pursuant to this

Indenture and the Master Sale and Servicing Agreement.  The Indenture Trustee shall apply all such

money received by it as provided in this Indenture and the Series

Supplement.  Except as otherwise

expressly provided in this Indenture or in the Master Sale and Servicing

Agreement, if any default occurs in the making of any payment or performance

under any agreement or instrument that is part of the Series Trust Estate, the

Indenture Trustee may, with the consent of the Insurer (for so long as it is

the Controlling Party) and shall, at the direction of the Insurer (for so long

as it is the Controlling Party), take such action as may be appropriate to

enforce such payment or performance, including the institution and prosecution

of appropriate proceedings.  Any such action

shall be without prejudice to any right to claim a Default or Event of Default

under this Indenture and any right to proceed thereafter as provided in Article

V.

 

SECTION 8.2                          Release

of Series Trust Estate.

 

(a)                                  Subject

to the payment of its fees and expenses pursuant to Section 6.7, and to the

extent not covered by Section 8.2(b), the Indenture Trustee may, and when

required by the Issuer and the provisions of this Indenture shall, execute

instruments to release property from the lien of this Indenture, in a manner

and under circumstances that are not inconsistent with the provisions of this

Indenture.  No party relying upon an

instrument executed by the Indenture Trustee as provided in this Article VIII

shall be bound to ascertain the Indenture Trustee’s authority, inquire into the

satisfaction of any conditions precedent or see to the application of any

monies.

 

(b)                                 The

Indenture Trustee shall, at such time as there are no Notes Outstanding, the

Note Policy has terminated in accordance with its terms and all sums due the

Indenture Trustee pursuant to Section 6.7 and due the Insurer pursuant to the

Insurance Agreement and the Basic Documents have been paid, release any

remaining

 

45

 

portion of the Series Trust Estate that secured the Notes from the lien

of this Indenture and release to the Issuer or any other Person entitled

thereto any funds then on deposit in the Trust Accounts.  The Indenture Trustee shall release property

from the lien of this Indenture pursuant to this Section 8.2(b) only upon

receipt of an Issuer Request accompanied by an Officer’s Certificate, an

Opinion of Counsel and (if required by the TIA) Independent Certificates in

accordance with TIA §§ 314(c) and 314(d)(1) meeting the applicable

requirements of Section 11.1.

 

SECTION 8.3                                  Opinion

of Counsel.  The Indenture Trustee shall receive

at least seven days’ notice when requested by the Issuer to take any action

pursuant to Section 8.2(a), accompanied by copies of any instruments involved,

and the Indenture Trustee shall also require as a condition to such action, an

Opinion of Counsel, stating the legal effect of any such action, outlining the

steps required to complete the same, and concluding that all conditions

precedent to the taking of such action have been complied with and such action

will not materially and adversely impair the security for the Notes or the

rights of the Secured Parties in contravention of the provisions of this

Indenture; provided, however, that such Opinion of Counsel shall

not be required to express an opinion as to the fair value of the Series Trust

Estate.  Counsel rendering any such

opinion may rely, without independent investigation, on the accuracy and

validity of any certificate or other instrument delivered to the Indenture

Trustee in connection with any such action.

 

ARTICLE IX.

 

Amendments; the Series Supplement

 

SECTION 9.1                          Amendments

Without Consent of Noteholders.

 

(a)                                  Except

as otherwise provided in the Series Supplement, without the consent of the

Holders of any Notes but with the prior written consent of the Insurer (for so

long as the Insurer is the Controlling Party) and with prior written notice to

the Rating Agencies, as evidenced to the Indenture Trustee and the Issuer, when

authorized by an Issuer Order, at any time and from time to time, the parties

hereto may enter into one or more amendments hereto, in form satisfactory to

the Indenture Trustee and the Insurer (for so long as it is the Controlling

Party), for any of the following purposes:

 

(i)                                              to

correct or amplify the description of any property at any time subject to the

lien of this Indenture, or better to assure, convey and confirm unto the

Indenture Trustee any property subject or required to be subjected to the lien

of this Indenture, or to subject to the lien of this Indenture additional

property;

 

(ii)                                           to

evidence the succession, in compliance with the applicable provisions hereof,

of another person to the Issuer, and the assumption by any such successor of

the covenants of the Issuer herein and in the Notes contained;

 

46

 

(iii)                                        to

add to the covenants of the Issuer, for the benefit of the Holders of the

Notes, or to surrender any right or power herein conferred upon the Issuer;

 

(iv)                                       to

convey, transfer, assign, mortgage or pledge any property to or with the

Indenture Trustee;

 

(v)                                          to

cure any ambiguity, to correct or supplement any provision herein or in the

Series Supplement which may be inconsistent with any other provision herein or

in the Series Supplement or to make any other provisions with respect to

matters or questions arising under this Indenture or in the Series Supplement; provided

that such action shall not, as evidenced by an Opinion of Counsel, adversely

affect the interests of the Holders of the Notes or the Insurer;

 

(vi)                                       to

evidence and provide for the acceptance of the appointment hereunder by a

successor trustee with respect to the Notes and to add to or change any of the

provisions of this Indenture as shall be necessary to facilitate the

administration of the trusts hereunder by more than one trustee, pursuant to

the requirements of Article VI; or

 

(vii)                                    to

modify, eliminate or add to the provisions of this Indenture to such extent as

shall be necessary to effect the qualification of this Indenture under the TIA

or under any similar federal statute hereafter enacted and to add to this

Indenture such other provisions as may be expressly required by the TIA.

 

The Indenture Trustee is hereby authorized to join in

the execution of any amendment and to make any further appropriate agreements

and stipulations that may be therein contained.

 

(b)                                 Except

as otherwise provided in the Series Supplement, the Issuer and the Indenture

Trustee, when authorized by an Issuer Order, may, also without the consent of

any of the Holders of the Notes but with the prior written consent of the

Insurer (for so long as it is the Controlling Party) and with prior written

notice to the Rating Agencies by the Issuer, as evidenced to the Indenture

Trustee, enter into an amendment hereto in form satisfactory to the Insurer

(for so long as it is the Controlling Party) for the purpose of adding any

provisions to, or changing in any manner or eliminating any of the provisions

of, this Indenture or of modifying in any manner the rights of the Holders of

the Notes under this Indenture; provided, however, that such

action shall not, as evidenced by an Opinion of Counsel, adversely affect in

any material respect the interests of any Noteholder or the Insurer.

 

SECTION 9.2                                  Amendments

With Consent of Noteholders.  Except

as otherwise provided in the Series Supplement, the Issuer and the Indenture

Trustee, when authorized by an Issuer Order provided by the Master Servicer,

also may, with prior written notice to the Rating Agencies and with the consent

of the Insurer (for so long as it is the Controlling Party) and the Holders of

not less than a majority of the Outstanding Amount of each Class of Notes

affected thereby, by Act of such Holders delivered to the 

 

47

 

Issuer and the

Indenture Trustee, enter into an amendment hereto for the purpose of adding any

provisions to, or changing in any manner or eliminating any of the provisions

of, this Indenture or of modifying in any manner the rights of the Holders of

the Notes under this Indenture; provided, however, that if the

Controlling Party is not the Insurer, no such amendment shall adversely affect

the interests of the Insurer; and provided, further that no such

amendment shall, without the consent of the Holder of each Outstanding Note

affected thereby:

 

(i)                                     change

the date of payment of any installment of principal of or interest on any Note,

or reduce the principal amount thereof, the interest rate thereon, change the

provision of this Indenture relating to the application of collections on, or

the proceeds of the sale of, the Series Trust Estate to payment of principal of

or interest on the Notes, or change any place of payment where, or the coin or

currency in which, any Note or the interest thereon is payable;

 

(ii)                                  impair

the right to institute suit for the enforcement of the provisions of this

Indenture requiring the application of funds available therefor, as provided in

Article V, to the payment of any such amount due on the Notes on or after the

respective due dates thereof;

 

(iii)                               reduce the percentage of

the Outstanding Amount of the Notes, the consent of the Holders of which is

required for any such Series Supplement, or the consent of the Holders of which

is required for any waiver of compliance with certain provisions of this

Indenture or certain defaults hereunder and their consequences provided for in

this Indenture;

 

(iv)                              modify

or alter the provisions of the proviso to the definition of the term

“Outstanding”;

 

(v)                                 reduce

the percentage of the Outstanding Amount of the Notes required to direct the

Indenture Trustee to direct the Issuer to sell or liquidate the Series Trust

Estate pursuant to Section 4.03 of the Series Supplement;

 

(vi)                              modify

any provision of this Section except to increase any percentage specified

herein or to provide that certain additional provisions of this Indenture or

the Basic Documents cannot be modified or waived without the consent of the

Holder of each Outstanding Note affected thereby;

 

(vii)                           modify any of the provisions

of this Indenture in such manner as to affect the calculation of the amount of

any payment of interest or principal due on any Note on any Distribution Date

(including the calculation of any of the individual components of such

calculation) or to affect the rights of the Holders of Notes to the benefit of

any provisions for the mandatory redemption of the Notes contained in the

Series Supplement; or

 

(viii)                        permit the creation of any lien

ranking prior to or on a parity with the lien of this Indenture with respect to

any part of the Series Trust Estate or, 

 

48

 

except as otherwise permitted or contemplated herein

or in the Series Supplement or the Related Documents, terminate the lien of

this Indenture on any property at any time subject hereto or deprive the Holder

of any Note of the security provided by the lien of this Indenture.

 

It shall not be necessary for any Act of Noteholders

under this Section to approve the particular form of any proposed amendment,

but it shall be sufficient if such Act shall approve the substance thereof.

 

Promptly after the execution by the Issuer and the

Indenture Trustee of any amendment pursuant to this Section, the Indenture

Trustee shall mail to the Holders of the Notes to which such amendment relates

a notice setting forth in general terms the substance of such amendment.  Any failure of the Indenture Trustee to mail

such notice, or any defect therein, shall not, however, in any way impair or

affect the validity of any such amendment.

 

Prior to the execution of any amendment to this

Indenture, the Indenture Trustee shall be entitled to receive and rely upon an

Opinion of Counsel stating that the execution of such amendment is authorized

or permitted by this Indenture.  The

Indenture Trustee may, but shall not be obligated to, enter into any such

amendment which affects the Indenture Trustee’s own rights, duties or

immunities under this Indenture.

 

SECTION 9.3                          Series

Supplement Authorizing the Notes.

 

(a)                                  The

Notes issued hereunder shall be issued pursuant to the Series Supplement, which

shall set forth the terms and provisions of the Notes.

 

(b)                                 Amendments

to the Series Supplement shall be governed by the provisions of  the Series Supplement.

 

SECTION 9.4                                  Execution

of the Series Supplement.  The

Indenture Trustee shall be entitled to receive, and subject to Sections 6.1 and

6.2, shall be fully protected in relying upon, an Opinion of Counsel (and, if

requested, an Officer’s Certificate) stating that the execution of the Series

Supplement is authorized or permitted by this Indenture.

 

SECTION 9.5                                  Effect

of Series Supplement.  Upon the

execution of the Series Supplement or any amendment pursuant to the provisions

of the Series Supplement or hereof, this Indenture shall be and be deemed to be

modified and amended in accordance therewith with respect to the Notes affected

thereby, and the respective rights, limitations of rights, obligations, duties,

liabilities and immunities under this Indenture of the Indenture Trustee, the Issuer

and the Holders of the Notes shall thereafter be determined, exercised and

enforced hereunder subject in all respects to such modifications and

amendments, and all the terms and conditions of the Series Supplement or any

amendment shall be and be deemed to be part of the terms and conditions of this

Indenture for any and all purposes.

 

49

 

SECTION 9.6                                  Conformity

With Trust Indenture Act.  Every

amendment of this Indenture and the Series Supplement executed pursuant to this

Article IX shall conform to the requirements of the Trust Indenture Act as then

in effect so long as this Indenture shall then be qualified under the Trust

Indenture Act.

 

SECTION 9.7                                  Reference

in Notes to the Series Supplement. 

Notes authenticated and delivered after the execution of the Series

Supplement pursuant to this Article IX may, and if required by the Issuer

shall, bear a notation as to any matter provided for in the Series

Supplement.  If the Issuer shall so

determine, new Notes so modified as to conform, in the opinion of the Issuer,

to the Series Supplement may be prepared and executed by the Issuer and

authenticated and delivered by the Indenture Trustee in exchange for

Outstanding Notes.

 

ARTICLE X.

 

SECTION 10.1                            Note

Insurer’s Rights Regarding Actions, Proceedings or Investigations.

 

(a)                                  In

connection with any action, proceeding or investigation against or with respect

to the Issuer, for so long as the Insurer is the Controlling Party the

Indenture Trustee and the Issuer hereby agree to cooperate with, and to take

such action as directed in writing by, the Insurer, including, without

limitation, entering into such agreements and settlements as the Insurer shall

direct in writing, in its sole discretion, without the consent of any other

Person.  Notwithstanding any other

provision herein or in any of the other Basic Documents, the Indenture Trustee

shall not require any bond or indemnification from any Person for taking of any

action at the direction of the Insurer given at a time when the Insurer is the

Controlling Party, and the Indenture Trustee shall not be liable to the Issuer

or the Insurer for any such action that conforms to the direction of the

Insurer given at a time when the Insurer is the Controlling Party.  The Indenture Trustee’s reasonable

out-of-pocket costs and expenses (including attorneys’ fees and expenses) with

respect to any such action shall be reimbursed pursuant to Section 3.03(a) of

the Series Supplement.

 

(b)                                 The

Issuer and the Indenture Trustee hereby agree to provide to the Insurer prompt

written notice of any action, proceeding or investigation that names the Issuer

or the Indenture Trustee as a party or that involves the Issuer or the Series

Trust Estate or the rights or obligations of the Insurer under the Related

Documents or under the Note Policy, including, without limitation, any

insolvency or bankruptcy proceeding in respect of the Issuer.

 

(c)                                  Notwithstanding

anything contained herein or in any of the other Basic Documents to the

contrary, the Issuer and the Indenture Trustee shall not, without the Insurer’s

prior written consent so long as the Insurer is the Controlling Party, which

consent shall not be unreasonably withheld, or unless directed by the Insurer

in writing so long as the Insurer is the Controlling Party, undertake or join

any litigation or agree to any settlement of any action, proceeding or

investigation affecting the Series Trust Estate

 

50

 

or the Issuer or the rights or obligations of the Insurer under the

Basic Documents or under the Note Policy.

 

(d)                                 The

Insurer shall have such rights as set forth in this Section, which are in

addition to any rights of the Insurer pursuant to the other provisions of the

Basic Documents and the rights set forth in this Section may be exercised by

the Insurer so long as the Insurer is the Controlling Party, in its sole

discretion, without the need for the consent or approval of the Issuer, the

Indenture Trustee or any other Person, notwithstanding any other provision

contained herein or in any of the other Basic Documents.  Nothing contained in this Section shall be

deemed to create or constitute an obligation of the Insurer to exercise any of

the rights provided for herein.

 

ARTICLE XI.

 

Miscellaneous

 

SECTION 11.1                            Compliance

Certificates and Opinions, etc.

 

(a)                                  Upon

any application or request by the Issuer to the Indenture Trustee to take any

action under any provision of this Indenture or the Series Supplement, the

Issuer shall furnish to the Indenture Trustee (i) an Officer’s Certificate

stating that all conditions precedent, if any, provided for in this Indenture

or the Series Supplement relating to the proposed action have been complied

with, (ii) an Opinion of Counsel stating that in the opinion of such counsel

all such conditions precedent, if any, have been complied with and (iii) (if

required by the TIA) an Independent Certificate from a firm of certified public

accountants meeting the applicable requirements of this Section, except that,

in the case of any such application or request as to which the furnishing of

such documents is specifically required by any provision of this Indenture or

the Series Supplement, no additional certificate or opinion need be furnished.

 

Every certificate or opinion with respect to

compliance with a condition or covenant provided for in this Indenture or the

Series Supplement shall include:

 

(i)                                              a

statement that each signatory of such certificate or opinion has read or has

caused to be read such covenant or condition and the definitions herein

relating thereto;

 

(ii)                                           a

brief statement as to the nature and scope of the examination or investigation

upon which the statements or opinions contained in such certificate or opinion

are based;

 

(iii)                                        a

statement that, in the opinion of each such signatory, such signatory has made

such examination or investigation as is necessary to enable such signatory to

express an informed opinion as to whether or not such covenant or condition has

been complied with; and

 

(iv)                                       a

statement as to whether, in the opinion of each such signatory such condition

or covenant has been complied with.

 

51

 

(b)                                                 (i)  Prior to the deposit of any property or

securities with the Indenture Trustee that is to be made the basis for the

release of any property or securities subject to the lien of this Indenture and

the Series Supplement, the Issuer shall, in addition to any obligation imposed

in Section 11.1(a) or elsewhere in this Indenture or the Series Supplement,

furnish to the Indenture Trustee an Officer’s Certificate certifying or stating

the opinion of each person signing such certificate as to the fair value

(within 90 days of such deposit) to the Issuer of the property or securities to

be so deposited.

 

(ii)                                           Whenever

the Issuer is required to furnish to the Indenture Trustee an Officer’s

Certificate certifying or stating the opinion of any signer thereof as to the

matters described in clause (i) above, the Issuer shall also deliver to the

Indenture Trustee an Independent Certificate as to the same matters, if the

fair value to the Issuer of the securities to be so deposited and of all other

such securities made the basis of any such withdrawal or release since the

commencement of then-current fiscal year of the Issuer, as set forth in the

certificates delivered pursuant to clause (i) above and this clause (ii), is

10% or more of the Outstanding Amount of the Notes; provided, that such

a certificate need not be furnished with respect to any securities so

deposited, if the fair value thereof to the Issuer as set forth in the related

Officer’s Certificate is less than $25,000 or less than 1% percent of the

Outstanding Amount of the Notes.

 

(iii)                                        Other

than with respect to the release of any Repurchased Receivables or Liquidated

Receivables (as such terms are defined in the Master Sale and Servicing

Agreement), whenever any property or securities are to be released from the

lien of this Indenture and the Series Supplement, the Issuer shall also furnish

to the Indenture Trustee an Officer’s Certificate certifying or stating the

opinion of each person signing such certificate as to the fair value (within 90

days of such release) of the property or securities proposed to be released and

stating that in the opinion of such person the proposed release will not impair

the security under this Indenture and the Series Supplement in contravention of

the provisions hereof.

 

(iv)                                       Whenever

the Issuer is required to furnish to the Indenture Trustee an Officer’s

Certificate certifying or stating the opinion of any signer thereof as to the

matters described in clause (i) above, the Issuer shall also furnish to the

Indenture Trustee an Independent Certificate as to the same matters if the fair

value of the property or securities and of all other property other than

Repurchased Receivables and Defaulted Receivables (as such terms are defined in

the Master Sale and Servicing Agreement), or securities released from the lien

of this Indenture since the commencement of then current calendar year, as set

forth in the certificates required by clause (ii) above and this clause (iv),

equals 10% or more of the Outstanding Amount of the Notes; provided,

that such certificate need not be furnished in the case of any release of

property or securities if the fair value thereof as set forth in the related

Officer’s Certificate is less than $25,000 or less than 1 percent of then

Outstanding Amount of the Notes.

 

52

 

(v)                                          Notwithstanding

any other provision of this Section, the Issuer may (A) collect, liquidate,

sell or otherwise dispose of Receivables as and to the extent permitted or

required by the Basic Documents and (B) make cash payments out of the Trust

Accounts as and to the extent permitted or required by the Basic Documents.

 

SECTION 11.2                            Form

of Documents Delivered to Indenture Trustee.  In any case where several matters are required to be certified

by, or covered by an opinion of, any specified Person, it is not necessary that

all such matters be certified by, or covered by the opinion of, only one such

Person, or that they be so certified or covered by only one document, but one

such Person may certify or give an opinion with respect to some matters and one

or more other such Persons as to other matters, and any such Person may certify

or give an opinion as to such matters in one or several documents.

 

Any certificate or opinion of an Authorized Officer of

the Issuer may be based, insofar as it relates to legal matters, upon a

certificate or opinion of, or representations by, counsel, unless such officer

knows, or in the exercise of reasonable care should know, that the certificate

or opinion or representations with respect to the matters upon which his or her

certificate or opinion is based are erroneous. 

Any such certificate of an Authorized Officer or Opinion of Counsel may

be based, insofar as it relates to factual matters, upon a certificate or

opinion of, or representations by, an officer or officers of the Master

Servicer, the Seller or the Issuer, stating that the information with respect

to such factual matters is in the possession of the Master Servicer, the Seller

or the Issuer, unless such counsel knows, or in the exercise of reasonable care

should know, that the certificate or opinion or representations with respect to

such matters are erroneous.

 

Where any Person is required to make, give or execute

two or more applications, requests, consents, certificates, statements,

opinions or other instruments under this Indenture, they may, but need not, be

consolidated and form one instrument.

 

Whenever in this Indenture or the Series Supplement,

in connection with any application or certificate or report to the Indenture

Trustee, it is provided that the Issuer shall deliver any document as a

condition of the granting of such application, or as evidence of the Issuer’s

compliance with any term hereof, it is intended that the truth and accuracy, at

the time of the granting of such application or at the effective date of such

certificate or report (as the case may be), of the facts and opinions stated in

such document shall in such case be conditions precedent to the right of the

Issuer to have such application granted or to the sufficiency of such

certificate or report.  The foregoing

shall not, however, be construed to affect the Indenture Trustee’s right to

conclusively rely upon the truth and accuracy of any statement or opinion

contained in any such document as provided in Article VI.

 

SECTION 11.3                            Acts

of Noteholders.

 

(a)                                  Any

request, demand, authorization, direction, notice, consent, waiver or other

action provided by this Indenture to be given or taken by Noteholders

 

53

 

may be embodied in and evidenced by one or more instruments of substantially

similar tenor signed by such Noteholders in person or by agents duly appointed

in writing; and except as herein otherwise expressly provided such action shall

become effective when such instrument or instruments are delivered to the

Indenture Trustee, and, where it is hereby expressly required, to the

Issuer.  Such instrument or instruments

(and the action embodied therein and evidenced thereby) are herein sometimes

referred to as the “Act” of the Noteholders signing such instrument or

instruments.  Proof of execution of any

such instrument or of a writing appointing any such agent shall be sufficient

for any purpose of this Indenture and (subject to Section 6.1) conclusive in

favor of the Indenture Trustee and the Issuer, if made in the manner provided

in this Section.

 

(b)                                 The

fact and date of the execution by any person of any such instrument or writing

may be proved in any customary manner of the Indenture Trustee.

 

(c)                                  The

ownership of Notes shall be proved by the Note Register.

 

(d)                                 Any

request, demand, authorization, direction, notice, consent, waiver or other

action by the Holder of any Notes shall bind the Holder of every Note issued

upon the registration thereof or in exchange therefor or in lieu thereof, in

respect of anything done, omitted or suffered to be done by the Indenture

Trustee or the Issuer in reliance thereon, whether or not notation of such

action is made upon such Note.

 

SECTION 11.4                            Notices,

etc., to Indenture Trustee, Issuer and Rating Agencies.  Any request, demand, authorization,

direction, notice, consent, waiver or Act of Noteholders or other documents

provided or permitted by this Indenture or the Series Supplement to be made

upon, given or furnished to or filed with:

 

(a)                                  The

Indenture Trustee by any Noteholder or by the Issuer shall be sufficient for

every purpose hereunder if personally delivered, delivered by overnight courier

or mailed first-class and shall be deemed to have been duly given upon receipt

to the Indenture Trustee at its Corporate Trust Office, or

 

(b)                                 The

Issuer by the Indenture Trustee or by any Noteholder shall be sufficient for

every purpose hereunder if personally delivered, delivered by facsimile or

overnight courier or mailed first class, and shall be deemed to have been duly

given upon receipt to the Issuer addressed to: 

Household Automotive Trust 2003-1, in care of the Owner Trustee at its

Corporate Trust Office, or at any other address previously furnished in writing

to the Indenture Trustee by the Issuer. 

The Issuer shall promptly transmit any notice received by it from the

Noteholders to the Indenture Trustee.

 

Notices required to be given to the Rating Agencies by

the Issuer, the Indenture Trustee or the Owner Trustee shall be in writing,

personally delivered, delivered by overnight courier or first class or via

facsimile to (i) in the case of Moody’s, at the following address: Moody’s

Investors Service, Inc., 99 Church Street, New York, New York 10004, Fax

No:  (212) 553-0355, (ii) in the case of

S&P, at the following address: Standard & Poor’s Ratings Group, 55

Water Street, New York, New York 10041, Attention: Asset Backed Surveillance

Department, Fax No:  (212) 438-2649 and 

 

54

 

(iii) in the case of Fitch, Inc., at the following

address: One State Street Plaza, New York, New York 10004, Fax No. (212)

480-4438; or as to each of the foregoing, at such other address as shall be

designated by written notice to the other parties.

 

SECTION 11.5                    Notices

to Noteholders; Waiver.  Where this

Indenture or the Series Supplement provides for notice to Noteholders of any

event, such notice shall be sufficiently given (unless otherwise herein

expressly provided) if in writing and mailed, first-class, postage prepaid to

each Noteholder affected by such event, at his address as it appears on the

Note Register, not later than the latest date, and not earlier than the

earliest date, prescribed for the giving of such notice.  In any case where notice to Noteholders is

given by mail, neither the failure to mail such notice nor any defect in any

notice so mailed to any particular Noteholder shall affect the sufficiency of

such notice with respect to other Noteholders, and any notice that is mailed in

the manner herein provided shall conclusively be presumed to have been duly

given.

 

Where this Indenture or the Series Supplement provides

for notice in any manner, such notice may be waived in writing by any Person

entitled to receive such notice, either before or after the event, and such

waiver shall be the equivalent of such notice. 

Waivers of notice by Noteholders shall be filed with the Indenture

Trustee but such filing shall not be a condition precedent to the validity of

any action taken in reliance upon such a waiver.

 

In case, by reason of the suspension of regular mail

service as a result of a strike, work stoppage or similar activity, it shall be

impractical to mail notice of any event to Noteholders when such notice is

required to be given pursuant to any provision of this Indenture, then any

manner of giving such notice as shall be satisfactory to the Indenture Trustee

shall be deemed to be a sufficient giving of such notice.

 

Where this Indenture or the Series Supplement provides

for notice to the Rating Agencies, failure to give such notice shall not affect

any other rights or obligations created hereunder, and shall not under any

circumstance constitute a Default or Event of Default.

 

SECTION 11.6                            Alternate

Payment and Notice Provisions. 

Notwithstanding any provision of this Indenture, the Series Supplement  or any of the Notes to the contrary, the

Issuer may enter into any agreement with any Holder of a Note providing for a

method of payment, or notice by the Indenture Trustee or any Note Paying Agent

to such Holder, that is different from the methods provided for in this

Indenture or the Series Supplement for such payments or notices, provided that

such methods are reasonable and consented to by the Indenture Trustee and the

Insurer (for so long as it is the Controlling Party) (which consent, in each case,

shall not be unreasonably withheld). 

The Issuer will furnish to the Indenture Trustee a copy of each such

agreement and the Indenture Trustee will cause payments to be made and notices

to be given in accordance with such agreements.  Any additional costs and expenses incurred by the Indenture

Trustee pursuant to this Section shall be a cost and expense of the Indenture

Trustee pursuant to Section 3.03(a)(ii) of the Series Supplement.

 

55

 

SECTION 11.7                            Conflict

with Trust Indenture Act.  If this

Indenture is qualified under the Trust Indenture Act and if any provision

hereof limits, qualifies or conflicts with another provision hereof that is

required to be included in this indenture by any of the provisions of the Trust

Indenture Act, such required provision shall control.

 

The provisions of TIA §§ 310 through 317 that

impose duties on any person (including the provisions automatically deemed

included herein unless expressly excluded by this Indenture) are a part of and

govern this Indenture, whether or not physically contained herein.

 

SECTION 11.8                            Effect

of Headings and Table of Contents. 

The Article and Section headings herein and the Table of Contents are

for convenience only and shall not affect the construction hereof.

 

SECTION 11.9                            Successors

and Assigns.  All covenants and

agreements in this Indenture and the Notes by the Issuer shall bind its

successors and assigns, whether so expressed or not.  All agreements of the Indenture Trustee in this Indenture, the

Series Supplement shall bind its successors. 

All agreements of the Master Servicer in this Indenture or the Series

Supplement shall bind its successors and assigns.

 

SECTION 11.10                      Separability.  In case any provision in this Indenture or

in the Notes shall be invalid, illegal or unenforceable, the validity,

legality, and enforceability of the remaining provisions shall not in any way

be affected or impaired thereby.

 

SECTION 11.11                      Benefits

of Indenture.  Nothing in this

Indenture or the Series Supplement or in the Notes, express or implied, shall

give to any Person, other than the parties hereto and their successors

hereunder and the Insurer and its successors, and the Noteholders, and any

other party secured hereunder, and any other person with an ownership interest

in any part of the Series Trust Estate, any benefit or any legal or equitable

right, remedy or claim under this Indenture. 

The parties hereto agree that the Insurer is a third-party beneficiary hereof

and the Insurer shall be entitled to rely upon and directly enforce the

provisions of this Indenture for so long as the Insurer is the Controlling

Party; provided that nothing herein shall affect or limit the Insurer’s

rights as subrogee to the Noteholders.

 

SECTION 11.12                      Legal

Holidays.  In any case where the

date on which any payment is due shall not be a Business Day, then

(notwithstanding any other provision of the Notes, this Indenture or the Series

Supplement) payment need not be made on such date, but may be made on the next

succeeding Business Day with the same force and effect as if made on the date

an which nominally due, and no interest shall accrue for the period from and

after any such nominal date.

 

SECTION 11.13                      GOVERNING

LAW.  THIS INDENTURE SHALL BE

CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT

REFERENCE TO ITS CONFLICT OF LAWS PROVISIONS WHICH WOULD REQUIRE THE

APPLICATION OF THE LAWS OF ANY OTHER 

 

56

 

JURISDICTION, AND

THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE

DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

SECTION 11.14                      Counterparts.  This Indenture may be executed in any number

of counterparts, each of which so executed shall be deemed to be an original,

but all such counterparts shall together constitute but one and the same

instrument.

 

SECTION 11.15                      Recording

of Indenture.  If this Indenture or

the Series Supplement is subject to recording in any appropriate public

recording offices, such recording is to be effected by the Issuer and at its

expense accompanied by an Opinion of Counsel (which may be counsel to the Trust

or any other counsel reasonably acceptable to the Indenture Trustee) to the

effect that such recording is necessary either for the protection of the

Noteholders or any other person secured hereunder or for the enforcement of any

right or remedy granted to the Indenture Trustee under this Indenture or the

Series Supplement.

 

SECTION 11.16                      Trust

Obligation.  No recourse may be

taken, directly or indirectly, with respect to the obligations of the Issuer,

the Seller, the Master Servicer, the Owner Trustee or the Indenture Trustee on

the Notes or under this Indenture or the Series Supplement or any certificate

or other writing delivered in connection herewith or therewith, against (i) the

Seller, the Master Servicer, the Indenture Trustee or the Owner Trustee in its

individual capacity, (ii) any owner of a beneficial interest in the Issuer or

(iii) any partner, owner, beneficiary, agent, officer, director, employee or

agent of the Seller, the Master Servicer, the Indenture Trustee or the Owner

Trustee in its individual capacity, any holder of a beneficial interest in the

Issuer, the Seller, the Master Servicer, the Owner Trustee or the Indenture

Trustee or of any successor or assign of the Seller, the Master Servicer, the

Indenture Trustee or the Owner Trustee in its individual capacity, except as

any such Person may have expressly agreed (it being understood that the

Indenture Trustee and the Owner Trustee have no such obligations in their

individual capacity) and except that any such owner or beneficiary shall be

fully liable, to the extent provided by applicable law, for any unpaid

consideration for stock, unpaid capital contribution or failure to pay any

installment or call owing to such entity. For all purposes of this Indenture,

in the performance of any duties or obligations of the Issuer hereunder, the

Owner Trustee shall be subject to, and entitled to the benefits of, the terms

and provisions of Articles VI, VII, and VIII of the Trust Agreement.

 

SECTION 11.17                      No

Petition.  The Indenture Trustee, by

entering into this Indenture, and each Noteholder, by accepting a Note, hereby

covenant and agree that they will not at any time institute against the Seller,

or the Issuer, or join in, cooperate with or encourage others in connection

with the institution against the Seller, or the Issuer of, any bankruptcy,

reorganization, arrangement, insolvency or liquidation proceedings, or other

proceedings under any United States Federal or state bankruptcy or similar law

in connection with any obligations relating to the Notes, this Indenture or any

of the Basic Documents or any of the Related Documents.

 

57

 

SECTION 11.18                      Limited Recourse.

 

(a)                                  Notwithstanding

anything in the Related Documents to the contrary, the Notes constitute limited

recourse obligations of the Issuer and are limited in recourse to the Series

Trust Estate.  The Indenture Trustee, by

entering into this Indenture and the Series Supplement, and each Noteholder

agree that recourse for the Notes is limited to the Series Trust Estate and, if

the Series Trust Estate shall prove to be insufficient to pay amounts due under

the Notes, the Noteholders shall have no claim against the assets of the Issuer

or the Seller other than the Series Trust Estate.

 

(b)                                 If,

notwithstanding paragraph (a) above, the Noteholders are deemed to have any

interest in any asset of the Seller other than the Seller’s interest in the

Series Trust Estate, including any interest in assets of the Seller pledged to

secure debt obligations of the Seller other than the Notes, the Indenture

Trustee, by entering into this Indenture and the Series Supplement, and each

Noteholder agree that any such interest is subordinate to the claims of the

holders of any such debt obligations, and the Noteholders shall have no rights

in such assets until such other debt obligations are indefeasibly paid in

full.  The agreement of the Indenture

Trustee and the Noteholders pursuant to this Section 11.18(b) is intended to

constitute a subordination agreement for the purposes of Section 510(a) of the

Bankruptcy Code.

 

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

notice, it will permit any representative of the Indenture Trustee, during the

Issuer’s normal business hours, to examine all the books of account, records,

reports, and other papers of the Issuer, to make copies and extracts therefrom,

to cause such books to be audited by independent certified public accountants,

and to discuss the Issuer’s affairs, finances and accounts with the Issuer’s

officers, employees, and independent certified public accountants, all at such

reasonable times and as often as may be reasonably requested.  The Indenture Trustee shall and shall cause

its representatives to hold in confidence all such information except to the

extent disclosure may be required by law (and all reasonable applications for

confidential treatment are unavailing) and except to the extent that the Indenture

Trustee may reasonably determine that such disclosure is consistent with its

Obligations hereunder.

 

SECTION 11.20                      Limitation

of Liability.  It is expressly

understood and agreed by the parties hereto that (a) this Indenture is executed

and delivered by the Owner Trustee, not individually or personally but solely

as Owner Trustee of the Issuer under the Trust Agreement, in the exercise of

the powers and authority conferred and vested in it, (b) each of the

representations, undertakings and agreements herein made on the part of the

Issuer is made and intended not as personal representations, undertakings and

agreements by the Owner Trustee but is made and intended for the purpose of

binding only the Issuer, (c) nothing herein contained shall be construed as

creating any liability on the Owner Trustee individually or personally, to

perform any covenant either expressed or implied contained herein, all such

liability, if any, being expressly waived by the parties to this Indenture and

by any person claiming by, through or under them and (d) under no circumstances

shall the Owner Trustee be personally liable for the payment of any

indebtedness or expenses of the Issuer or be liable for the breach or failure

of any 

 

58

 

obligation,

representation, warranty or covenant made or undertaking by the Issuer under

this Indenture or any related documents.

 

[Signature Page Follows]

 

59

 

IN WITNESS WHEREOF, the Issuer and the Indenture

Trustee have caused this Indenture to be duly executed by their respective

officers, hereunto duly authorized, all as of the day and year first above

written.

 

	

   

  	

  HOUSEHOLD

  AUTOMOTIVE TRUST 2003-1

  
	

   

  	

   

  
	

   

  	

  By:

  	

  WILMINGTON

  TRUST COMPANY, not

  in its individual capacity but solely as

  Owner Trustee

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Anita E. Dallago

  	

   

  
	

   

  	

   

  	

  Name:

  	

  Anita E. Dallago

  
	

   

  	

   

  	

  Title:

  	

  Senior Financial Services Officer

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  U.S. BANK NATIONAL ASSOCIATION,

  
	

   

  	

  not in its individual capacity but solely as

  Indenture Trustee

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Patricia M. Child

  	

   

  
	

   

  	

   

  	

  Name:

  	

  Patricia M. Child

  
	

   

  	

   

  	

  Title:

  	

  Vice President

  
							

 

60

 

Exhibit A

 

FORM OF TRANSFEREE CERTIFICATE

 

Pursuant to Section 2.4 of the Indenture dated as of

May 29, 2003 between Household Automotive Trust 2003-1 and U.S. Bank National

Association,

                         

(the “Transferee”) hereby certifies on the date hereof that either (check

appropriate certification):

 

       (i) the

Transferee is not (A) an employee benefit plan (within the meaning of Section

3(3) of the Employee Retirement Income Security Act of 1974, as amended

(“ERISA”)) that is subject to Title I of ERISA or (B) a plan (within the

meaning of Section 4975(e)(1) of the Internal Revenue Code of 1986, as amended

(the “Code”)) that is subject to Section 4975 of the Code (each of the

foregoing, a “Plan”), and is not acting on behalf of or investing the assets of

a Plan; or

 

       (ii) that

the Transferee’s acquisition and continued holding of the Definitive Note will

be covered by a prohibited transaction class exemption issued by the U.S.

Department of Labor.

 

	

   

  	

   

  	

   

  	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

  [Name of Transferee]

  

 

61Exhibit

4.2

Execution Copy

 

AMENDED AND

RESTATED

 

TRUST AGREEMENT

 

 

between

 

 

HOUSEHOLD AUTO

RECEIVABLES CORPORATION

 

 

and

 

 

WILMINGTON TRUST

COMPANY

Owner Trustee

 

 

Dated as of May

29, 2003

 

 

TABLE OF CONTENTS

 

	

  ARTICLE I Definitions

  
	

   

  
	

  Section 1.1.

  	

  Capitalized Terms

  
	

  Section 1.2.

  	

  Other Definitional Provisions

  
	

  Section 1.3.

  	

  Action by or Consent of Noteholders and

  Certificateholders

  
	

  Section 1.4.

  	

  Material Adverse Effect

  
	

   

  	

   

  
	

  ARTICLE II Organization

  
	

   

  
	

  Section 2.1.

  	

  Name

  
	

  Section 2.2.

  	

  Office

  
	

  Section 2.3.

  	

  Purposes and Powers

  
	

  Section 2.4.

  	

  Appointment of Owner Trustee

  
	

  Section 2.5.

  	

  Initial Capital Contribution of Owner Trust

  Estate

  
	

  Section 2.6.

  	

  Declaration of Trust

  
	

  Section 2.7.

  	

  Liability

  
	

  Section 2.8.

  	

  Title to Owner Trust Estate

  
	

  Section 2.9.

  	

  Situs of Owner Trust Estate

  
	

  Section 2.10.

  	

  Representations and Warranties of the

  Depositor

  
	

  Section 2.11.

  	

  Federal Income Tax Allocations

  
	

  Section 2.12.

  	

  Covenants of the Depositor

  
	

  Section 2.13.

  	

  Covenants of the Certificateholders

  
	

   

  	

   

  
	

  ARTICLE III Certificates and Transfer of

  Interests

  
	

   

  
	

  Section 3.1.

  	

  Initial Ownership

  
	

  Section 3.2.

  	

  The Certificates

  
	

  Section 3.3.

  	

  Authentication of Certificates

  
	

  Section 3.4.

  	

  Registration of Transfer and Exchange of

  Certificates

  
	

  Section 3.5.

  	

  Mutilated, Destroyed, Lost or Stolen

  Certificates

  
	

  Section 3.6.

  	

  Persons Deemed Certificateholders

  
	

  Section 3.7.

  	

  Access to List of Certificateholders’ Names

  and Addresses

  
	

  Section 3.8.

  	

  Maintenance of Office or Agency

  
	

  Section 3.9.

  	

  ERISA Restrictions

  
	

  Section 3.10.

  	

  Securities Matters

  
	

  Section 3.11.

  	

  Distributions

  
	

  Section 3.12.

  	

  Certificate Paying Agent

  
	

   

  	

   

  
	

  ARTICLE IV Voting Rights and Other Actions

  
	

   

  
	

  Section 4.1.

  	

  Prior Notice to Holders with Respect to

  Certain Matters

  
	

  Section 4.2.

  	

  Action by Certificateholders with Respect

  to Certain Matters

  
	

  Section 4.3.

  	

  Action by Certificateholders with Respect

  to Bankruptcy

  
	

  Section 4.4.

  	

  Restrictions on Certificateholders’ Power

  
	

  Section 4.5.

  	

  Majority Control

  

 

 

	

  Section 4.6.

  	

  Certain Litigation Matters

  
	

   

  	

   

  
	

  ARTICLE V Certain Duties

  
	

   

  
	

  Section 5.1.

  	

  Accounting and Records to the Noteholders,

  Certificateholders, the Internal Revenue Service and Others

  
	

  Section 5.2.

  	

  Signature on Returns; Tax Matters Partner

  
	

   

  	

   

  
	

  ARTICLE VI Authority and Duties of Owner

  Trustee

  
	

   

  
	

  Section 6.1.

  	

  General Authority

  
	

  Section 6.2.

  	

  General Duties

  
	

  Section 6.3.

  	

  Action upon Instruction

  
	

  Section 6.4.

  	

  No Duties Except as Specified in this

  Agreement or in Instructions

  
	

  Section 6.5.

  	

  No Action Except under Specified Documents

  or Instructions

  
	

  Section 6.6.

  	

  Restrictions

  
	

   

  	

   

  
	

  ARTICLE VII Concerning the Owner Trustee

  
	

   

  
	

  Section 7.1.

  	

  Acceptance of Trust and Duties

  
	

  Section 7.2.

  	

  Furnishing of Documents

  
	

  Section 7.3.

  	

  Representations and Warranties

  
	

  Section 7.4.

  	

  Reliance; Advice of Counsel

  
	

  Section 7.5.

  	

  Not Acting in Individual Capacity

  
	

  Section 7.6.

  	

  Owner Trustee Not Liable for Certificates

  or Receivables

  
	

  Section 7.7.

  	

  Owner Trustee May Own Certificates and

  Notes

  
	

  Section 7.8.

  	

  Payments from Owner Trust Estate

  
	

  Section 7.9.

  	

  Doing Business in Other Jurisdictions

  
	

   

  	

   

  
	

  ARTICLE VIII Compensation of Owner Trustee

  
	

   

  
	

  Section 8.1.

  	

  Owner Trustee’s Fees and Expenses

  
	

  Section 8.2.

  	

  Indemnification

  
	

  Section 8.3.

  	

  Payments to the Owner Trustee

  
	

  Section 8.4.

  	

  Non-recourse Obligations

  
	

   

  	

   

  
	

  ARTICLE IX Termination of Agreement

  
	

   

  
	

  Section 9.1.

  	

  Termination of Agreement

  
	

   

  	

   

  
	

  ARTICLE X Successor Owner Trustees and

  Additional Owner Trustees

  
	

   

  
	

  Section 10.1.

  	

  Eligibility Requirements for Owner Trustee

  
	

  Section 10.2.

  	

  Resignation or Removal of Owner Trustee

  
	

  Section 10.3.

  	

  Successor Owner Trustee

  
	

  Section 10.4.

  	

  Merger or Consolidation of Owner Trustee

  
	

  Section 10.5.

  	

  Appointment of Co-Trustee or Separate

  Trustee

  
	

   

  	

   

  
	

  ARTICLE XI Miscellaneous

  

 

ii

 

	

  Section 11.1.

  	

  Supplements and Amendments

  
	

  Section 11.2.

  	

  No Legal Title to Owner Trust Estate in

  Certificateholders

  
	

  Section 11.3.

  	

  Limitations on Rights of Others

  
	

  Section 11.4.

  	

  Notices

  
	

  Section 11.5.

  	

  Severability

  
	

  Section 11.6.

  	

  Separate Counterparts

  
	

  Section 11.7.

  	

  Assignments; Support Provider

  
	

  Section 11.8.

  	

  Covenants of the Depositor

  
	

  Section 11.9.

  	

  No Petition

  
	

  Section 11.10.

  	

  No Recourse

  
	

  Section 11.11.

  	

  Headings

  
	

  Section 11.12.

  	

  GOVERNING LAW

  
	

  Section 11.13.

  	

  Master Servicer

  
	

  Section 11.14.

  	

  Third-Party Beneficiary

  

 

	

  EXHIBITS

  
	

   

  	

   

  
	

  Exhibit A

  	

  Form of Certificate

  
	

  Exhibit B

  	

  Form of Certificate of Trust

  

 

iii

 

THIS AMENDED AND RESTATED

TRUST AGREEMENT, dated as of May 29, 2003, between HOUSEHOLD AUTO RECEIVABLES

CORPORATION, a Nevada corporation (the “Depositor”) and WILMINGTON TRUST

COMPANY, a Delaware banking corporation, as Owner Trustee (the “Owner

Trustee”), amends and restates in its entirety that certain Trust Agreement,

dated as of April 15, 2003, between the Depositor and the Owner Trustee.

 

ARTICLE

I

Definitions

 

Section 1.1.            Capitalized Terms.  For all purposes of this Agreement, the following terms shall

have the meanings set forth below:

 

“Agreement” shall mean

this Amended and Restated Agreement, as the same may be amended and

supplemented from time to time.

 

“Benefit Plan” shall have

the meaning assigned to such term in Section 3.9.

 

“Certificates” means, if

the Depositor elects (i) to evidence its interest in certificated form pursuant

to Section 3.2, the certificate substantially in the form of Exhibit A or (ii)

to have its interest be uncertified pursuant to Section 3.2, such

uncertificated interest.

 

“Certificate Majority”

shall have the meaning assigned to such term in Section 4.1.

 

“Certificate Paying

Agent” means U.S. Bank National Association, a national banking association.

 

“Certificate Register”

and “Certificate Registrar” shall mean the register mentioned and the registrar

appointed pursuant to Section 3.4.

 

“Certificate of Trust”

shall mean the Certificate of Trust in the form of Exhibit B to be filed for

the Trust pursuant to § 3810(a) of the Statutory Trust Statute.

 

“Code” shall mean the

Internal Revenue Code of 1986, as amended.

 

“Corporate Trust Office”

shall mean, with respect to the Owner Trustee, the principal corporate trust

office of the Owner Trustee located at Rodney Square North, 1100 North Market

Street, Wilmington, Delaware 19890-1600, Attention: Corporate Trust

Administration, or at such other address as the Owner Trustee may designate by

notice to the Certificateholders and the Depositor, or the principal corporate

trust office of any successor Owner Trustee (the address of which the successor

owner trustee will notify the Certificateholders, the Insurer and the

Depositor).

 

 

“Depositor” shall mean

Household Auto Receivables Corporation in its capacity as Depositor hereunder.

 

“ERISA” shall have the

meaning assigned to such term in Section 3.9.

 

“Expenses” shall have the

meaning assigned to such term in Section 8.2.

 

“Holder” or

“Certificateholder” shall mean a Person in whose name a Certificate is

registered on the Certificate Register.

 

“Household” shall mean

Household Finance Corporation.

 

“Indemnified Parties”

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

 

“Owner Trust Estate”

shall mean all right, title and interest of the Trust in and to the property

and rights assigned to the Trust pursuant to Article II of the Master Sale and

Servicing Agreement, all funds on deposit from time to time in the Trust

Accounts and all other property of the Trust from time to time, including any

rights of the Owner Trustee and the Trust pursuant to the Master Sale and

Servicing Agreement and each Related Document.

 

“Owner Trustee” shall

mean Wilmington Trust Company, a Delaware banking corporation, not in its

individual capacity but solely as Owner Trustee under this Agreement, and any

successor Owner Trustee hereunder.

 

“Percentage Interest”

shall mean, with respect to a Certificate, the portion of the interests in the

Trust represented by a Certificate, as reflected in the Certificate Register.

 

“Secretary of State”

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

 

“Securities Act” shall

have the meaning assigned to such term in Section 3.4.

 

“Series Trust Estate”

shall mean the property granted to the Indenture Trustee on behalf of the Trust

pursuant to Section 1.02 of the Series Supplement.

 

“Statutory Trust Statute”

shall mean Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code

§ 3801 et seq. as the same may be amended from time to time.

 

“Treasury Regulations”

shall mean regulations, including proposed or temporary regulations,

promulgated under the Code.  References

herein to specific provisions of proposed or temporary regulations shall

include analogous provisions of final Treasury Regulations or other successor

Treasury Regulations.

 

2

 

“Trust” shall mean the

trust established by this Agreement.

 

Section 1.2.            Other Definitional Provisions.

(a)  Capitalized terms used herein and not otherwise defined have the

meanings assigned to them in the Master Sale and Servicing Agreement or, if not

defined therein, in the Indenture; provided  that, as used herein,

Series means only the Series of Notes and Series of Certificates with respect

to which the Trust is the Issuer and only such Series Trust Estates included in

the Owner Trust Estate.

 

(b)           All

terms defined in this Agreement shall have the defined meanings when used in

any Certificate or other document made or delivered pursuant hereto unless

otherwise defined therein.

 

(c)           As

used in this Agreement and in any Certificate or other document made or

delivered pursuant hereto or thereto, accounting terms not defined in this

Agreement or in any such certificate or other document, and accounting terms

partly defined in this Agreement or in any such certificate or other document

to the extent not defined, shall have the respective meanings given to them

under generally accepted accounting principles as in effect on the date of this

Agreement or any such certificate or other document, as applicable.  To the extent that the definitions of

accounting terms in this Agreement or in any such certificate or other document

are inconsistent with the meanings of such terms under generally accepted

accounting principles, the definitions contained in this Agreement or in any

such certificate or other document shall control.

 

(d)           The

words “hereof,” “herein,” “hereunder” and words of similar import when used in

this Agreement shall refer to this Agreement as a whole and not to any

particular provision of this Agreement; Section and Exhibit references

contained in this Agreement are references to Sections and Exhibits in or to

this Agreement unless otherwise specified; and the term “including” shall mean

“including without limitation.”

 

(e)           The

definitions contained in this Agreement are applicable to the singular as well

as the plural forms of such terms and to the masculine as well as to the

feminine and neuter genders of such terms.

 

Section 1.3.            Action by or Consent of

Noteholders and Certificateholders. 

Whenever any provision of this Agreement refers to action to be taken,

or consented to, by Noteholders or Certificateholders, such provision shall be

deemed to refer to the Certificateholder or Noteholder, as the case may be, of

record as of the Record Date immediately preceding the date on which such

action is to be taken, or consent given, by Noteholders or

Certificateholders.  Solely for the

purposes of any action to be taken, or consented to, by Noteholders, any Note

registered in the name of the Depositor or any Affiliate thereof shall be

deemed not to be outstanding; provided, however, that, solely for

the purpose of determining whether the Indenture Trustee is entitled to rely

upon any such action or consent, only Notes which the Owner Trustee or the

Indenture Trustee knows to be so owned shall be so disregarded.

 

3

 

Section 1.4.            Material Adverse Effect.  Whenever a determination is to be made under

this Agreement as to whether a given event, action, course of conduct or set of

facts or circumstances could or would have a material adverse effect on the

Noteholders or Certificateholders (or any similar or analogous determination),

such determination shall be made without taking into account the funds

available from claims under any policy or other Series Support.

 

ARTICLE

II

Organization

 

Section 2.1.            Name.  There is hereby formed a trust to be known

as “Household Automotive Trust 2003-1”, in which name the Owner Trustee may

conduct the business of the Trust, make and execute contracts and other

instruments on behalf of the Trust and sue and be sued.

 

Section 2.2.            Office.  The principal place of business of the Trust

for purposes of Delaware law shall be in care of the Owner Trustee at the

Corporate Trust Office of the Owner Trustee or at such other address as the

Owner Trustee may designate by written notice to the Certificateholders, the

Insurer and the Depositor.  The Trust

may establish additional offices located at such place or places inside or

outside the State of Delaware as the Owner Trustee may designate from time to

time by written notice to the Certificateholders and the Depositor.  Initially, the Trust shall establish one

such additional office at the Corporate Trust Office of the Owner Trustee.

 

Section 2.3.            Purposes and Powers  (a)  The purpose of the Trust is,

and the Trust shall have the power and authority, to engage in the following

activities:

 

(i)            to

issue the Notes pursuant to the Indenture and the Series Supplement and the

Certificates pursuant to this Agreement and the Series Supplement, and to sell

the Notes;

 

(ii)           with

the proceeds of the sale of the Notes, to fund the expense of obtaining any

Series Support and to pay the organizational, start-up and transactional

expenses of the Trust and to pay the balance to the Depositor pursuant to the

Master Sale and Servicing Agreement;

 

(iii)          with

respect to the Series Trust Estate, to assign, grant, transfer, pledge,

mortgage and convey the Series Trust Estate to the Indenture Trustee pursuant

to the Indenture and the Series Supplement for the benefit of the Secured

Parties;

 

(iv)          to

enter into and perform its obligations under the Basic Documents and the

Related Documents, in each case, to which it is a party;

 

(v)           to

acquire, hold and manage the Owner Trust Estate;

 

4

 

(vi)          to

make distributions on the Certificates in accordance with their respective terms;

 

(vii)         to

own Class SV Preferred Stock of the Depositor;

 

(viii)        to

engage in those activities, including entering into agreements, that are

necessary, suitable or convenient to accomplish the foregoing or are incidental

thereto or connected therewith; and

 

(ix)           subject

to compliance with the Basic Documents and the Related Documents, to engage in

such other activities as may be required in connection with conservation of the

Owner Trust Estate and the making of distributions to the Certificateholders

and the Noteholders.

 

(b)           The

Trust is hereby authorized to engage in the foregoing activities.  The Trust shall not engage in any activity

other than in connection with the foregoing or other than as required or

authorized by the terms of this Agreement, the Basic Documents or any Related

Documents.

 

Section 2.4.            Appointment of Owner Trustee.  The Depositor hereby appoints the Owner

Trustee as trustee of the Trust effective as of the date hereof, to have all

the respective rights, powers and duties set forth herein.

 

Section 2.5.            Initial Capital Contribution of

Owner Trust Estate.  The Depositor

hereby sells, assigns, transfers, conveys and sets over to the Owner Trustee,

on behalf of the Trust, as of the date hereof, the sum of $1,000 and one share

of Class SV Preferred Stock of the Depositor. 

The Owner Trustee hereby acknowledges receipt in trust from the

Depositor, as of the date hereof, of the foregoing contribution, which shall

constitute the initial Owner Trust Estate. 

The Depositor shall pay organizational expenses of the Trust as they may

arise.

 

Section 2.6.            Declaration of Trust.  The Owner Trustee hereby declares that it

will hold the Owner Trust Estate in trust upon and subject to the conditions

set forth herein, on behalf of the Trust, for the use and benefit of the

Certificateholders, subject to the obligations of the Trust under the Basic

Documents.  It is the intention of the

parties hereto that the Trust constitute a statutory trust under the Statutory

Trust Statute and that this Agreement constitute the governing instrument of

such statutory trust.  It is the

intention of the parties hereto that, solely for income and franchise tax

purposes, the Trust shall be treated as a branch; provided, however,

that in the event Certificates are owned by more than one Certificateholder, it

is the intention of the parties hereto that, solely for income and franchise

tax purposes, the Trust shall then be treated as a partnership and that, unless

otherwise required by appropriate tax authorities, only after such time the

Trust will file or cause to be filed annual or other necessary returns, reports

and other forms consistent with the characterization of the Trust as a

partnership for such tax purposes. 

Effective as of the date hereof, the Owner Trustee shall have all

rights, powers and duties set forth herein and to the extent not inconsistent

herewith, in

 

5

 

the Statutory

Trust Statute with respect to accomplishing the purposes of the Trust.  The Owner Trustee shall file the Certificate

of Trust with the Secretary of State.

 

Section 2.7.            Liability  (a)  The Depositor shall pay

organizational expenses of the Trust as they may arise or shall, upon the

request of the Owner Trustee, promptly reimburse the Owner Trustee for any such

expenses paid by the Owner Trustee.

 

(b)           No

Holder, other than to the extent set forth in clause (a), shall have any

personal liability for any liability or obligation of the Trust.

 

Section 2.8.            Title to Owner Trust Estate  (a)  Legal title to all of the

Owner Trust Estate shall be vested at all times in the Trust as a separate

legal entity except where applicable law in any jurisdiction requires title to

any part of the Owner Trust Estate to be vested in a trustee or trustees, in which

case title shall be deemed to be vested in the Owner Trustee, a co-trustee

and/or a separate trustee, as the case may be.

 

(b)           The

holders of the Certificates shall not have legal title to any part of the

Series Trust Estate.  The Holders of the

Certificates shall be entitled to receive distributions with respect to their

undivided ownership interest therein in accordance with the terms hereof and

the Series Supplement.  No transfer, by

operation of law or otherwise, of any right, title or interest by any

Certificateholder of its ownership interest in the Owner Trust Estate shall

operate to terminate this Agreement or the trusts hereunder or entitle any

transferee to an accounting or to the transfer to it of legal title to any part

of the Series Trust Estate.

 

Section 2.9.            Situs of Owner Trust Estate.  The Trust will be located in the State of

Delaware and administered in the State of Delaware.  All bank accounts maintained by the Owner Trustee on behalf of

the Trust shall be located with the Certificate Paying Agent in the State of

New York.  Payments will be received by

the Certificate Paying Agent on behalf of the Trust in Illinois and payments

will be made by the Trust from New York. 

The Trust shall not have any employees in any state other than Delaware;

provided, however, that nothing herein shall restrict or prohibit

the Owner Trustee, the Master Servicer or any agent of the Trust from having

employees within or without the State of Delaware.  The principal office of the Trust will be at the Corporate Trust

Office in Delaware.

 

Section 2.10.          Representations and Warranties of

the Depositor.  The Depositor makes

the following representations and warranties on which the Owner Trustee relies

in accepting the Owner Trust Estate in trust and executing the Certificates and

Notes and upon which any Support Provider relies in providing any Series

Support.  Each of the following

representations and warranties shall be deemed to be made on each date on which

a Series Trust Estate is pledged under the Indenture.

 

(a)           Organization

and Good Standing.  The Depositor is

duly organized and validly existing as a Nevada corporation with power and

authority to own its properties and to conduct its business as such properties

are currently owned and such 

 

6

 

business is

presently conducted and is proposed to be conducted pursuant to this Agreement

and the Basic Documents.

 

(b)           Due

Qualification.  It is duly qualified

to do business as a foreign corporation in good standing, and has obtained all

necessary licenses and approvals, in all jurisdictions in which the ownership

or lease of its property, the conduct of its business and the performance of

its obligations under this Agreement and the Basic Documents requires such qualification

and in which the failure to so qualify would have a material adverse effect on

the business, properties, assets or condition (financial or otherwise) of the

Depositor.

 

(c)           Power

and Authority.  The Depositor has

the corporate power and authority to execute and deliver this Agreement and to

carry out its terms; the Depositor has full power and authority to sell and

assign the property to be sold and assigned to and deposited with the Trust;

the Depositor has duly authorized such sale, assignment and deposit to the

Trust by all necessary corporate action; and the execution, delivery and

performance of this Agreement has been duly authorized by the Depositor by all

necessary corporate action.

 

(d)           Binding

Obligations.  This Agreement, when

duly executed and delivered, shall constitute legal, valid and binding

obligations of the Depositor enforceable against the Depositor in accordance

with its terms, except as enforceability may be limited by bankruptcy,

insolvency, reorganization or other similar laws affecting the enforcement of

creditors’ rights generally and by equitable limitations on the availability of

specific remedies, regardless of whether such enforceability is considered in a

proceeding in equity or at law.

 

(e)           No

Consent Required.  To the best

knowledge of the Depositor, no consent, license, approval or authorization or

registration or declaration with, any Person or with any governmental

authority, bureau or agency is required in connection with the execution,

delivery or performance of this Agreement and the Related Documents, except for

such as have been obtained, effected or made or as to which a failure to

obtain, effect or make would not have a material adverse effect on the

business, properties, assets or condition (financial or other) of the

Depositor.

 

(f)            No

Violation.  The consummation of the

transactions contemplated by this Agreement and the fulfillment of the terms

hereof do not conflict with, result in any breach of any of the terms and

provisions of, or constitute (with or without notice or lapse of time) a

default under, the articles of incorporation or by-laws of the Depositor, or

any material indenture, agreement or other instrument to which the Depositor is

a party or by which it is bound; nor result in the creation or imposition of

any Lien upon any of its properties pursuant to the terms of any such

indenture, agreement or other instrument (other than pursuant to the Basic

Documents or any applicable Related Documents); nor violate any law or, to the

best of the Depositor’s knowledge, any order, rule or regulation applicable to

the Depositor of any court or of any Federal or state regulatory body,

administrative agency or other governmental instrumentality having jurisdiction

over the

 

7

 

Depositor or its

properties, provided, however, that the Receivables will not

satisfy the Eligibility Criteria set forth in Schedule I to the Series

Supplement until the Closing Date.

 

(g)           No

Proceedings.  To the best of the

Depositor’s knowledge, there are no proceedings or investigations pending or,

to its knowledge threatened against it before any court, regulatory body,

administrative agency or other tribunal or governmental instrumentality having

jurisdiction over it or its properties (A) asserting the invalidity of this

Agreement or any of the Basic Documents, (B) seeking to prevent the issuance of

the Certificates or the Notes or the consummation of any of the transactions

contemplated by this Agreement or any of the Basic Documents, (C) seeking any

determination or ruling that might materially and adversely affect its

performance of its obligations under, or the validity or enforceability of,

this Agreement or any Related Documents, or (D) seeking to adversely affect the

federal income tax or other federal, state or local tax attributes of any of

the Notes or Certificates.

 

Section 2.11           Federal Income Tax Allocations  (a)  For so long as the Trust has

a single owner for federal income tax purposes, it will, pursuant to Treasury

Regulations promulgated under section 7701 of the Code, be disregarded as an

entity distinct from the Certificateholder for all federal income tax

purposes.  Accordingly, for federal

income tax purposes, the Certificateholder will be treated as (i) owning all

assets owned by the Trust, (ii) having incurred all liabilities incurred by the

Trust, and (iii) all transactions between the Trust and the Certificateholder

will be disregarded.

 

(b)           Neither

the Owner Trustee nor any Certificateholder will, under any circumstances, and

at any time, make an election on IRS Form 8832 or otherwise, to classify the

Trust as an association taxable as a corporation for federal, state or any

other applicable tax purpose.

 

(c)           In

the event that the Trust has two equity owners for federal income tax purposes,

the Trust will be treated as a partnership. 

At any such time that the Trust has two equity owners, this Agreement

will be amended, in accordance with Section 11.1 herein, and appropriate provisions

will be added so as to provide for treatment of the Trust as a partnership.

 

Section 2.12.          Covenants of the Depositor.  The Depositor agrees and covenants for the

benefit of the Owner Trustee and the Indenture Trustee for the benefit of the

Secured Parties, during the term of this Agreement, and to the fullest extent

permitted by applicable law, that:

 

(a)           (i)

it shall not create, incur or suffer to exist any indebtedness or (ii) engage

in any business, except (x) as permitted by its articles of incorporation and

the Related Documents and (y) in connection with a securitization transaction

(including warehousing transactions) and the related documents in which the

related indebtedness is issued pursuant to an indenture having a provision

substantially similar to Section 11.18 of the Indenture; provided, however,

that no other Series shall be issued under the Basic Documents so long as the

Notes are outstanding;

 

8

 

(b)           it

shall not, for any reason, institute proceedings for the Trust to be adjudicated

bankrupt or insolvent, or consent to the institution of bankruptcy or

insolvency proceedings against the Trust, or file a petition seeking or

consenting to reorganization or relief under any applicable federal or state

law relating to the bankruptcy of the Trust, or consent to the appointment of a

receiver, liquidator, assignee, trustee, sequestrator (or other similar

official) of the Trust or a substantial part of the property of the Trust or

cause or permit the Trust to make any assignment for the benefit of creditors,

or admit in writing the inability of the Trust to pay its debts generally as

they become due, or declare or effect a moratorium on the debt of the Trust or

take any action in furtherance of any such action;

 

(c)           it

shall obtain from each counterparty to each Basic Document to which it or the

Trust is a party and each other agreement entered into on or after the date

hereof to which it or the Trust is a party, an agreement by each such

counterparty that prior to the occurrence of the event specified in

Section 9.1(e) such counterparty shall not institute against, or join any

other Person in instituting against, it or the Trust, any bankruptcy,

reorganization, arrangement, insolvency or liquidation proceedings or other

similar proceedings under the laws of the United States or any state of the

United States; and

 

(d)           it

shall not, for any reason, withdraw or attempt to withdraw from this Agreement,

dissolve, institute proceedings for it to be adjudicated a bankrupt or

insolvent, or consent to the institution of bankruptcy or insolvency

proceedings against it, or file a petition seeking or consenting to

reorganization or relief under any applicable federal or state law relating to

bankruptcy, or consent to the appointment of a receiver, liquidator, assignee,

trustee, sequestrator (or other similar official) of it or a substantial part

of its property, or make any assignment for the benefit of creditors, or admit

in writing its inability to pay its debts generally as they become due, or declare

or effect a moratorium on its debt or take any action in furtherance of any

such action.

 

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

 

(a)           to

be bound by the terms and conditions of the related Certificates, of this

Agreement and, with respect to the holders of Certificates, of the Series

Supplement, including any supplements or amendments hereto and to perform the

obligations of a Certificateholder as set forth therein or herein, in all

respects as if it were a signatory hereto. 

This undertaking is made for the benefit of the Trust, the Owner Trustee

and the Secured Parties;

 

(b)           to

hereby appoint the Depositor as such Certificateholder’s agent and

attorney-in-fact to sign any federal income tax information return filed on

behalf of the Trust, if any, and agree that, if requested by the Trust, it will

sign such federal income tax information return in its capacity as holder of an

interest in the Trust.  Each

Certificateholder also hereby agrees that in its tax returns it will not take

any position inconsistent with those taken in any tax returns that may be filed

by the Trust;

 

9

 

(c)           if

such Certificateholder is other than an individual or other entity holding its

Certificate through a broker who reports securities sales on Form 1099-B, to

notify the Owner Trustee of any transfer by it of a Certificate in a taxable

sale or exchange, within 30 days of the date of the transfer;

 

(d)           until

the completion of the events specified in Section 9.1(e), not to, for any

reason, institute proceedings for the Trust or the Depositor to be adjudicated

a bankrupt or insolvent, or consent to the institution of bankruptcy or

insolvency proceedings against the Trust, or file a petition seeking or

consenting to reorganization or relief under any applicable federal or state

law relating to bankruptcy, or consent to the appointment of a receiver,

liquidator, assignee, trustee, sequestrator (or other similar official) of the

Trust or a substantial part of its property, or cause or permit the Trust to

make any assignment for the benefit of its creditors, or admit in writing its

inability to pay its debts generally as they become due, or declare or effect a

moratorium on its debt or take any action in furtherance of any such action;

and

 

(e)           that

there shall not be more than 98 other holders of Certificates.

 

ARTICLE

III

Certificates and Transfer of Interests

 

Section 3.1.            Initial Ownership.  Upon the formation of the Trust by the

contribution by the Depositor pursuant to Section 2.5, the Trust shall

issue an uncertificated ownership interest in the Trust (the “Uncertificated

Certificate”) to the Depositor.  Unless

and until the Depositor transfers all or a portion of the Percentage Interest

represented by such Uncertificated Certificate, such Uncertificated Certificate

shall represent one hundred percent (100%) of the Percentage Interest.  Upon issuance, the Certificates shall be

fully paid and nonassessable.

 

Section 3.2.            The Certificates  (a)   The Certificates shall be in

uncertificated form with records of interest ownership maintained by the

Certificate Registrar in the Certificate Register.  If, on or after the Closing Date, the holder of any Uncertificated

Certificate delivers to the Owner Trustee a written request that the

Uncertificated Certificate specified in such request be issued in certificated

form (a related “Certification Request”), the Owner Trustee shall promptly

issue such Certificate to the holder thereof in certificated form.  If a Certification Request has been

delivered, the Certificate will be issued in registered form, substantially in

the form of Exhibit A, and shall upon issue, be executed and delivered by the

Depositor to the Owner Trustee for authentication and redelivery as provided in

Section 3.3.

 

(b)           If

the Certificates are in certificated form, they shall be executed on behalf of

the Trust by manual or facsimile signature of an authorized officer of the

Owner Trustee.  Certificates bearing the

manual or facsimile signatures of individuals who were, at the time when such

signatures shall have been affixed, authorized to sign on

 

10

 

behalf of the

Trust, shall be validly issued and entitled to the benefit of this Agreement,

notwithstanding that such individuals or any of them shall have ceased to be so

authorized prior to the authentication and delivery of such Certificates or did

not hold such offices at the date of authentication and delivery of such

Certificates.

 

(c)           A transferee

of a Certificate (whether in certificated or uncertificated form) shall become

a Certificateholder, and shall be entitled to the rights and subject to the

obligations of a Certificateholder hereunder, upon due registration of such

Certificate in such transferee’s name pursuant to Section 3.4.

 

(d)           No

Certificates shall be issued under this Agreement unless such Certificates have

been authorized pursuant to the Series Supplement and all conditions precedent

to the issuance thereof, as specified in the Series Supplement shall have been

satisfied.  All Certificates issued

under this Agreement shall be in all respects entitled to the benefits hereof

and of the Owner Trust Estate.

 

Section 3.3.            Authentication of Certificates.  If the Certificates are in certificated

form, the Owner Trustee shall cause the related Certificates to be executed on

behalf of the Trust, authenticated and delivered to or upon the written order

of the Depositor, signed by its chairman of the board, its president or any

vice president, its treasurer or any assistant treasurer without further

corporate action by the Depositor, in authorized denominations.  No Certificate shall entitle its holder to

any benefit under this Agreement or, with respect to a Series, the Series

Supplement, or shall be valid for any purpose, unless there shall appear on

such Certificate a certificate of authentication substantially in the form set

forth in Exhibit A, executed by the Owner Trustee or its authenticating agent,

by manual signature; such authentication shall constitute conclusive evidence

that such Certificate shall have been duly authenticated and delivered

hereunder.  All Certificates shall be

dated the date of their authentication.

 

Section 3.4.            Registration of Transfer and

Exchange of Certificates 

(a)  The Certificate Registrar shall keep or cause to be kept,

at the office or agency maintained pursuant to Section 3.8, a Certificate

Register in which, subject to such reasonable regulations as it may prescribe,

the Owner Trustee shall provide for the registration of Certificates (whether

in certificated or uncertificated form) and of transfers and exchanges of

Certificates (whether in certificated or uncertificated form) as herein

provided.  The Owner Trustee shall be

the initial Certificate Registrar.

 

(b)           The

Certificate Registrar shall provide the Indenture Trustee with a list of the

names and addresses of the Certificateholders on the Closing Date in the form

which such information is provided to the Certificate Registrar by the

Depositor.  Upon any transfers of

Certificates, the Certificate Registrar shall notify the Indenture Trustee of

the name and address of the transferee in writing, by facsimile, on the day of

such transfer.

 

(c)           If

a Certificate is in certificated form, upon surrender for registration of

transfer of any Certificate to the Certificate Registrar at the office or

agency maintained pursuant to Section 3.8, the Owner Trustee shall

execute, authenticate

 

11

 

and deliver, in the

name of the designated transferee or transferees, one or more new Certificates

of the same Series in the aggregate Percentage Interest to be transferred,

dated the date of authentication by the Owner Trustee or any authenticating

agent.  If a Certificate is in

uncertificated form, upon representation of such Certificate in accordance with

Section 3.2, the Certificate Registrar shall reflect in the Certificate

Register the transfer of the relevant Percentage Interest.  If a Certificate is in certificated form, at

the option of the Holder thereof, such Certificate may be exchanged for one or

more other Certificates of the same Series in authorized denominations of a

like Percentage Interest upon surrender of the Certificates of the same Series,

to be exchanged at the office or agency maintained pursuant to

Section 3.8.  Certificates may be

issued in any Percentage Interest not to exceed 100%.

 

(d)           Every

Certificate presented or, in the case of certificated Certificates, surrendered

for registration of transfer or exchange shall be accompanied by a written

instrument of transfer in form satisfactory to the Owner Trustee and the

Certificate Registrar duly executed by the Certificateholder or his attorney

duly authorized in writing, with such signature guaranteed by an “eligible

guarantor institution” meeting the requirements of the Certificate Registrar,

which requirements include membership or participation in the Securities

Transfer Agent’s Medallion Program (“STAMP”) or such other “signature guarantee

program” as may be determined by the Certificate Registrar in addition to, or

in substitution for, STAMP, all in accordance with the Exchange Act.  Each certificated Certificate surrendered

for registration of transfer or exchange shall be canceled and subsequently

disposed of by the Owner Trustee in accordance with its customary practice.

 

(e)           No

service charge shall be made for any registration of transfer or exchange of

Certificates, but the Owner Trustee or the Certificate Registrar may require

payment of a sum sufficient to cover any tax or governmental charge that may be

imposed in connection with any transfer or exchange of Certificates.

 

Section 3.5.            Mutilated, Destroyed, Lost or

Stolen Certificates.  If (a) any

mutilated Certificate shall be surrendered to the Certificate Registrar, or if

the Certificate Registrar shall receive evidence to its satisfaction of the

destruction, loss or theft of any Certificate and (b) there shall be delivered

to the Certificate Registrar and the Owner Trustee, such security or indemnity

as may be required by them to hold each of them harmless, then in the absence

of notice that such Certificate shall have been acquired by a bona fide

purchaser, the Owner Trustee on behalf of the Trust shall execute and the Owner

Trustee or its authenticating agent shall authenticate and deliver, in exchange

for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a

new Certificate of like Series principal balance.  In connection with the issuance of any new Certificate under this

Section, the Owner Trustee or the Certificate Registrar may require the payment

of a sum sufficient to cover any tax or other governmental charge that may be

imposed in connection therewith.  Any

duplicate Certificate issued pursuant to this section shall constitute

conclusive evidence of an ownership interest in the Trust, as if originally

issued, whether or not the lost, stolen or destroyed Certificate shall be found

at any time.

 

12

 

Section 3.6.            Persons Deemed Certificateholders.  Every Person by virtue of becoming a

Certificateholder in accordance with this Agreement and the rules and

regulations of the Certificate Registrar shall be deemed to be bound by the

terms of this Agreement.  Prior to due

presentation of a Certificate for registration of transfer, the Owner Trustee

and the Certificate Registrar and any agent of the Owner Trustee and the

Certificate Registrar may treat the Person in whose name any Certificate shall

be registered in the Certificate Register as the owner of such Certificate for

the purpose of receiving distributions pursuant hereto, the Indenture or the

Series Supplement (in the case of a Certificate) and for all other purposes

whatsoever, and none of the Owner Trustee, the Certificate Registrar nor any

agent of the Owner Trustee or the Certificate Registrar shall be bound by any

notice to the contrary.

 

Section 3.7.            Access to List of

Certificateholders’ Names and Addresses. 

The Owner Trustee or the Certificate Registrar shall furnish or cause to

be furnished to the Master Servicer, the Depositor, the Insurer or the

Indenture Trustee within 15 days after receipt by the Owner Trustee or the

Certificate Registrar of a request therefor from such Person in writing, a

list, of the names and addresses of the Certificateholders as of the most

recent Record Date.  If three or more

Holders of Certificates or one or more Holders of Certificates evidencing not

less than 25% of the Percentage Interest apply in writing to the Owner Trustee

or the Certificate Registrar, and such application states that the applicants

desire to communicate with other Certificateholders with respect to their

rights under this Agreement, under the Certificates of such Series or under the

Series Supplement and such application is accompanied by a copy of the

communication that such applicants propose to transmit, then the Owner Trustee

or the Certificate Registrar shall, within five Business Days after the receipt

of such application, afford such applicants access during normal business hours

to the current list of Certificateholders of such Series.  Each Holder, by receiving and holding a

Certificate, shall be deemed to have agreed not to hold any of the Depositor,

the Master Servicer, the Owner Trustee or any agent thereof accountable by

reason of the disclosure of its name and address, regardless of the source from

which such information was derived.

 

Section 3.8.            Maintenance of Office or Agency.  The Owner Trustee or the Certificate

Registrar shall maintain in Wilmington, Delaware, an office or offices or

agency or agencies where Certificates may be surrendered for registration of

transfer or exchange and where notices and demands to or upon the Owner Trustee

in respect of the Certificates and the Basic Documents may be served.  The Owner Trustee initially designates its

Corporate Trust Office for such purposes. 

The Owner Trustee shall give prompt written notice to the Depositor, the

Certificateholders and any Support Provider of any change in the location of

the Certificate Register or any such office or agency.

 

Section 3.9.            ERISA Restrictions.  The Certificates may not be acquired by or

for the account of (i) an employee benefit plan (as defined in § 3(3) of

the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)) that

is subject to the provisions of Title I of ERISA, (ii) a plan (as defined in

§ 4975(e)(1) of the Code) that is subject to Section 4975 of the Code or

(iii) any entity whose underlying assets include assets of a plan described in

(i) or (ii) by reason of such plan’s investment in the entity (each, a “Benefit

Plan”).  The Certificate Registrar shall

not register the

 

13

 

transfer of a

Certificate unless the transferee has delivered to the Owner Trustee a

representation letter in form and substance satisfactory to the Owner Trustee

to the effect that the transferee is not, and is not acquiring the Certificate

for the account of, a Benefit Plan.

 

Section 3.10.          Securities Matters.  Notwithstanding anything contained herein to

the contrary, the Owner Trustee shall not be responsible for ascertaining

whether any transfer complies with the registration provisions or exemptions

from the Securities Act, the Exchange Act, applicable state securities law or

the Investment Company Act; provided, however, that if a

certificate is specifically required to be delivered to the Owner Trustee by a

purchaser or transferee of a Certificate, the Owner Trustee shall be under a

duty to examine the same to determine whether it conforms to the requirements

of this Agreement and shall promptly notify the party delivering the same if

such certificate does not so conform.

 

Section 3.11.          Distributions.  Distributions shall be made from time to

time by the Owner Trustee or the Certificate Paying Agent in accordance with

the Percentage Interests of the Certificateholders.

 

Section 3.12.          Certificate Paying Agent.  Distributions to be made in respect of the

Certificates pursuant to this Agreement, or the Series Supplement shall be made

by the Certificate Paying Agent, by wire transfer or check mailed to the

Certificateholder of record in the Certificate Register without the

presentation or surrender of the Certificate or the making of any notation

thereon, except as provided in Section 9.1(c) with respect to the final

distribution on a Certificates.

 

ARTICLE

IV

Voting Rights and Other Actions

 

Section 4.1.            Prior Notice to Holders with

Respect to Certain Matters.  With

respect to the following matters, the Owner Trustee shall not take action

unless at least 30 days before the taking of such action, the Owner Trustee

shall have notified the Certificateholders in writing of the proposed action

and Certificateholders holding, in the aggregate, greater than 50% of the

Percentage Interests (a “Certificate Majority”) shall not have notified the

Owner Trustee in writing prior to the 30th day after such notice is given that

such Certificateholders have withheld consent or provided alternative

direction:

 

(a)           the

election by the Trust to file an amendment to the Certificate of Trust, which

amendment shall have satisfied the Rating Agency Condition (unless such

amendment is required to be filed under the Statutory Trust Statute or unless

such amendment would not materially and adversely affect the interests of the

Holders) and shall have been consented to by the Insurer (for so long as it is

the Controlling Party);

 

(b)           the

amendment of the Indenture by a supplemental indenture in circumstances where

the consent of any Noteholder is required;

 

14

 

(c)           the

amendment of the Indenture by a supplemental indenture in circumstances where

the consent of any Noteholder is not required and such amendment materially

adversely affects the interest of the Certificateholders;

 

(d)           except

pursuant to Section 13.1(b) of the Master Sale and Servicing Agreement,

the amendment, change or modification of the Master Sale and Servicing

Agreement, except to cure any ambiguity or defect or to amend or supplement any

provision in a manner that would not materially adversely affect the interests

of the Certificateholders; or

 

(e)           the

Depositor shall not, without the unanimous consent of the holders of the Class

SV Preferred Stock of the Depositor, institute proceedings to be adjudicated

insolvent, or consent to the institution of any bankruptcy or insolvency case

or proceedings against it, or file or consent to a petition under any

applicable federal or state law relating to bankruptcy, seeking the Depositor’s

liquidation or reorganization or any other relief for the Corporation as

debtor, or consent to the appointment of a receiver, liquidator, assignee,

trustee, custodian or sequestrator (or other similar official) of the

Corporation or a substantial part of its property, or make any assignment for

the benefit of creditors, or admit in writing its inability to pay its debts

generally as they become due, or take any corporate action in furtherance of

such action.

 

The Owner Trustee shall notify the Certificateholders

in writing of any appointment of a successor Note Registrar or Certificate

Registrar within five Business Days thereof.

 

Section 4.2.            Action by Certificateholders with

Respect to Certain Matters.  The

Owner Trustee shall not have the power (a) to remove the Master Servicer under

the Master Sale and Servicing Agreement or (b) except as expressly provided in

the Indenture and the Series Supplement and at the written direction of the

Certificateholders, sell the Receivables after the termination of the Indenture.

 The Owner Trustee shall take the

actions referred to in the preceding sentence only upon written instructions

signed by the Certificateholders, with the prior written consent of the Insurer

(for so long as it is the Controlling Party) and the furnishing of

indemnification satisfactory to the Owner Trustee by the Certificateholders.

 

Section 4.3.            Action by Certificateholders with

Respect to Bankruptcy.  Until one

year and one day following the date of payment in full of the Notes, the Owner

Trustee shall not have the power to, and shall not, commence any proceeding or

other actions contemplated by Section 2.13(d) hereof relating to the Trust

without the prior written consent of the Insurer (for so long as it is the

Controlling Party) and  all the

Certificateholders and the delivery to the Owner Trustee by each such

Certificateholder of a certificate certifying that such Certificateholder

reasonably believes that the Trust is insolvent.

 

Section 4.4.            Restrictions on

Certificateholders’ Power 

(a)  The Certificateholders shall not direct the Owner Trustee

to take or refrain from taking any action if such action or inaction would be

contrary to any obligation of the Trust or the

 

15

 

Owner Trustee

under this Agreement or any of the Basic Documents or would be contrary to

Section 2.3 or otherwise contrary to law nor shall the Owner Trustee be

obligated to follow any such direction, if given.

 

(b)           No

Certificateholder shall have any right by virtue or by availing itself of any

provisions of this Agreement to institute any suit, action, or proceeding in

equity or at law upon or under or with respect to this Agreement or any Basic

Document, unless there are no outstanding Notes and unless the Certificate

Majority previously shall have given to the Owner Trustee a written notice of

default and of the continuance thereof, as provided in this Agreement, and also

unless the Certificate Majority shall have made written request upon the Owner

Trustee to institute such action, suit or proceeding in its own name as Owner

Trustee under this Agreement and shall have offered to the Owner Trustee such

reasonable indemnity as it may require against the costs, expenses and

liabilities to be incurred therein or thereby, and the Owner Trustee, for 30

days after its receipt of such notice, request, and offer of indemnity, shall

have neglected or refused to institute any such action, suit, or proceeding,

and during such 30-day period no request or waiver inconsistent with such

written request has been given to the Owner Trustee pursuant to and in

compliance with this section or Section 6.3; it being understood and

intended, and being expressly covenanted by each Certificateholder with every

other Certificateholder and the Owner Trustee, that no one or more Holders of

Certificates shall have any right in any manner whatever by virtue or by

availing itself or themselves of any provisions of this Agreement to affect,

disturb, or prejudice the rights of the Holders of any other of the Certificates,

or to obtain or seek to obtain priority over or preference to any other such

Holder, or to enforce any right under this Agreement, except in the manner

provided in this Agreement and for the equal, ratable, and common benefit of

all Certificateholders.  For the

protection and enforcement of the provisions of this Section 4.4, each and

every Certificateholder and the Owner Trustee shall be entitled to such relief

as can be given either at law or in equity.

 

Section 4.5.            Majority Control.  No Certificateholder shall have any right to

vote or in any manner otherwise control the operation and management of the

Trust except as expressly provided in this Agreement.  Except as expressly provided herein, any action that may be taken

by the Certificateholders under this Agreement may be taken by the Certificate

Majority.  Except as expressly provided

herein, any written notice of the Certificateholders delivered pursuant to this

Agreement shall be effective if signed by the Certificate Majority at the time

of the delivery of such notice.

 

Section 4.6.            Certain Litigation Matters  (a) 

The Owner Trustee shall provide prompt written notice to the Insurer of

any action, proceeding or investigation of which a Responsible Officer of the

Owner Trustee has actual knowledge that could adversely affect the Trust or the

Owner Trust Estate or the rights or obligations of the Insurer under any of the

Basic Documents, the Note Policy or any other document delivered with respect

thereto.

 

(b)           The

Owner Trustee shall not, without the Insurer’s prior written consent (for so

long as it is the Controlling Party) or unless directed by the Insurer (if it

is the Controlling Party), undertake or join any litigation or agree to any

settlement of any

 

16

 

action, proceeding

or investigation that could adversely affect the Trust or the rights or

obligations of the Insurer under any of the Basic Documents, the Note Policy or

any other document delivered with respect thereto.

 

ARTICLE

V

Certain Duties

 

Section 5.1.            Accounting and Records to the

Noteholders, Certificateholders, the Internal Revenue Service and Others.  Subject to Sections 12.1(b)(iii) and 12.1(c)

of the Master Sale and Servicing Agreement, the Master Servicer shall (a)

maintain (or cause to be maintained) the books of the Trust on a calendar year

basis on the accrual method of accounting, including, without limitation, the

allocations of net income under Section 2.11, (b) deliver (or cause to be

delivered) to each Certificateholder, as may be required by the Code and

applicable Treasury Regulations, such information as may be required (including

Schedule K-1, if applicable) to enable each Certificateholder to prepare its

Federal and state income tax returns, (c) file or cause to be filed, if

necessary, such tax returns relating to the Trust (including a partnership

information return, Form 1065), and direct the Owner Trustee or the Master

Servicer, as the case may be, to make such elections as may from time to time

be required or appropriate under any applicable state or Federal statute or

rule or regulation thereunder so as to maintain the Trust’s characterization as

a branch, or if applicable, as a partnership, for Federal income tax purposes

and (d) collect or cause to be collected any withholding tax as described in

and in accordance with the Master Sale and Serving Agreement or the Series

Supplement with respect to income or distributions to Certificateholders and

the appropriate forms relating thereto. 

The Owner Trustee or the Master Servicer, as the case may be, shall make

all elections pursuant to this Section 5.1 as directed in writing by the

Depositor.  The Owner Trustee shall sign

all tax information returns, if any, filed pursuant to this Section 5.1

and any other returns as may be required by law, and in doing so shall rely

entirely upon, and shall have no liability for information provided by, or

calculations provided by, the Depositor or the Master Servicer.  The Owner Trustee shall elect under

Section 1278 of the Code to include in income currently any market

discount that accrues with respect to the Receivables.  The Owner Trustee shall not make the

election provided under Section 754 of the Code.

 

Section 5.2.            Signature on Returns; Tax Matters

Partner. 

(a)  Notwithstanding the provisions of Section 5.1 and in

the event that the Trust is characterized as a partnership, the Owner Trustee

shall sign on behalf of the Trust the tax returns of the Trust, unless

applicable law requires a Certificateholder to sign such documents, in which

case such documents shall be signed by the Depositor.

 

(b)           In

the event that the Trust is characterized as a partnership, the Depositor shall

be the “tax matters partner” of the Trust pursuant to the Code.

 

17

 

ARTICLE

VI

Authority and Duties of Owner Trustee

 

Section 6.1.            General Authority.  The Owner Trustee is authorized and directed

to execute and deliver on behalf of the Trust the Basic Documents to which the

Trust is named as a party and each certificate or other document attached as an

exhibit to or contemplated by the Basic Documents to which the Trust is named

as a party and any amendment thereto, in each case, in such form as the

Depositor shall approve as evidenced conclusively by the Owner Trustee’s

execution thereof, and on behalf of the Trust, to direct the Indenture Trustee

to authenticate and deliver the Notes. 

In addition to the foregoing, the Owner Trustee is authorized, but shall

not be obligated, to take all actions required of the Trust pursuant to the

Basic Documents.  The Owner Trustee is

further authorized from time to time to take such action as the Certificate

Majority recommends with respect to the Basic Documents so long as such activities

are consistent with the terms of the Basic Documents.

 

Section 6.2.            General Duties.  It shall be the duty of the Owner Trustee to

discharge (or cause to be discharged) all of its responsibilities pursuant to

the terms of this Agreement and to administer the Trust in accordance with the

provisions of this Agreement and in the interest of the Holders, subject to the

Basic Documents.  Notwithstanding the

foregoing, the Owner Trustee shall be deemed to have discharged its duties and

responsibilities hereunder and under the Basic Documents to the extent the

Master Servicer has agreed in the Master Sale and Servicing Agreement to

perform any act or to discharge any duty of the Trust or the Owner Trustee

hereunder or under any Basic Document and the Owner Trustee shall not be liable

for the default or failure of the Master Servicer to carry out its obligations

under the Master Sale and Servicing Agreement.

 

Section 6.3.            Action upon Instruction  (a) 

Subject to Article IV, the Certificate Majority shall have the exclusive

right to direct the actions of the Owner Trustee in the management of the

Trust, so long as such instructions are not inconsistent with the express terms

set forth herein or in any Basic Document. 

The Certificate Majority shall not instruct the Owner Trustee in a

manner inconsistent with this Agreement or the Basic Documents.

 

(b)           The

Owner Trustee shall not be required to take any action hereunder or under any

Basic Document if the Owner Trustee shall have reasonably determined, or shall

have been advised by counsel, that such action is likely to result in liability

on the part of the Owner Trustee or is contrary to the terms hereof or of any

Basic Document or is otherwise contrary to law.

 

(c)           Whenever

the Owner Trustee is unable to decide between alternative courses of action

permitted or required by the terms of this Agreement or any Basic Document, the

Owner Trustee shall promptly give notice (in such form as shall be appropriate

under the circumstances) to the Certificate Majority and the Insurer requesting

instruction as to the course of action to be adopted, and to the extent the

 

18

 

Owner Trustee acts

in good faith in accordance with any written instruction of the Certificate

Majority or the Insurer, the Owner Trustee shall not be liable on account of

such action to any Person.  If the Owner

Trustee shall not have received appropriate instruction within ten days of such

notice (or within such shorter period of time as reasonably may be specified in

such notice or may be necessary under the circumstances) it may, but shall be

under no duty to, take or refrain from taking such action, not inconsistent

with this Agreement or the Basic Documents or as it shall deem to be in the

best interests of the Certificateholders, and shall have no liability to any

Person for such action or inaction.

 

(d)           In

the event that the Owner Trustee is unsure as to the application of any

provision of this Agreement or any Basic Document or any such provision is

ambiguous as to its application, or is, or appears to be, in conflict with any

other applicable provision, or in the event that this Agreement permits any

determination by the Owner Trustee or is silent or is incomplete as to the

course of action that the Owner Trustee is required to take with respect to a

particular set of facts, the Owner Trustee may give notice (in such form as

shall be appropriate under the circumstances) to the Certificate Majority

requesting instruction and, to the extent that the Owner Trustee acts or

refrains from acting in good faith in accordance with any such instruction

received, the Owner Trustee shall not be liable, on account of such action or

inaction, to any Person.  If the Owner

Trustee shall not have received appropriate instruction within 10 days of such

notice (or within such shorter period of time as reasonably may be specified in

such notice or may be necessary under the circumstances) it may, but shall be

under no duty to, take or refrain from taking such action, not inconsistent

with this Agreement or the Basic Documents, as it shall deem to be in the best

interests of the Certificateholders, and shall have no liability to any Person

for such action or inaction.

 

Section 6.4.            No Duties Except as Specified in

this Agreement or in Instructions. 

The Owner Trustee shall not have any duty or obligation to manage, make

any payment with respect to, register, record, sell, dispose of, or otherwise

deal with the Owner Trust Estate, or to otherwise take or refrain from taking

any action under, or in connection with, any document contemplated hereby to

which the Owner Trustee is a party, except as expressly provided by the terms

of this Agreement or in any document or written instruction received by the

Owner Trustee pursuant to Section 6.3; and no implied duties or obligations

shall be read into this Agreement or any Basic Document against the Owner

Trustee.  The Owner Trustee shall have

no responsibility for filing any financing or continuation statement in any

public office at any time or to otherwise perfect or maintain the perfection of

any security interest or lien granted to it hereunder or to prepare or file any

Commission filing for the Trust or to record this Agreement or any Basic

Document.  The Owner Trustee

nevertheless agrees that it will, at its own cost and expense, promptly take

all action as may be necessary to discharge any Liens on any part of the Owner

Trust Estate that result from actions by, or claims against, the Owner Trustee

(solely in its individual capacity) and that are not related to the ownership or

the administration of the Owner Trust Estate.

 

Section 6.5.            No Action Except under Specified

Documents or Instructions.  The

Owner Trustee shall not manage, control, use, sell, dispose of or

 

19

 

otherwise deal

with any part of the Owner Trust Estate except (i) in accordance with the

powers granted to and the authority conferred upon the Owner Trustee pursuant

to this Agreement, (ii) in accordance with the Basic Documents or any Related

Document and (iii) in accordance with any document or instruction delivered to

the Owner Trustee pursuant to Section 6.3.

 

Section 6.6.            Restrictions.  The Owner Trustee shall not take any action

(a) that is inconsistent with the purposes of the Trust set forth in

Section 2.3 or (b) that, to the actual knowledge of the Owner Trustee,

would result in the Trust’s becoming taxable as a corporation or a publicly

traded partnership for Federal income tax purposes.  The Certificateholders shall not direct the Owner Trustee to take

action that would violate the provisions of this Section.

 

ARTICLE

VII

Concerning the Owner Trustee

 

Section 7.1.            Acceptance of Trust and Duties.  The Owner Trustee accepts the trust hereby

created and agrees to perform its duties hereunder with respect to such trust

but only upon the terms of this Agreement. 

The Owner Trustee and the Certificate Paying Agent also agree to

disburse all monies actually received by it constituting part of the Owner

Trust Estate upon the terms of this Agreement or the Basic Documents.  The Owner Trustee shall not be answerable or

accountable hereunder or under any Basic Document under any circumstances,

except (i) for its own willful misconduct, bad faith or negligence, (ii) in the

case of the inaccuracy of any representation or warranty contained in

Section 7.3 expressly made by the Owner Trustee in its individual

capacity, (iii) for liabilities arising from the failure of the Owner Trustee

to perform obligations expressly undertaken by it in the last sentence of

Section 6.4 hereof, (iv) for any investments issued by the Owner Trustee

or any branch or affiliate thereof in its commercial capacity or (v) for taxes,

fees or other charges on, based on or measured by, any fees, commissions or

compensation received by the Owner Trustee. 

In particular, but not by way of limitation (and subject to the

exceptions set forth in the preceding sentence):

 

(a)           the

Owner Trustee shall not be liable for any error of judgment made by a

Responsible Officer of the Owner Trustee;

 

(b)           the

Owner Trustee shall not be liable with respect to any action taken or omitted

to be taken by it in accordance with the instructions of the Certificate

Majority, the Depositor, the Master Servicer or any Certificateholder;

 

(c)           no

provision of this Agreement or any Basic Document shall require the Owner

Trustee to expend or risk funds or otherwise incur any financial liability in

the performance of any of its rights or powers hereunder or under any Basic

Document if the Owner Trustee shall have reasonable grounds for believing that

repayment of such funds or adequate indemnity against such risk or liability is

not reasonably assured or provided to it;

 

20

 

(d)           under

no circumstances shall the Owner Trustee be liable for indebtedness evidenced

by or arising under any of the Basic Documents or any Related Document,

including the principal of and interest on the Notes;

 

(e)           the

Owner Trustee shall not be responsible for or in respect of the validity or

sufficiency of this Agreement or for the due execution hereof by the Depositor

or for the form, character, genuineness, sufficiency, value or validity of any

of the Owner Trust Estate or for or in respect of the validity or sufficiency

of the Basic Documents or any Related Document, other than the certificate of

authentication on the Certificates, and the Owner Trustee shall in no event

assume or incur any liability, duty or obligation to the Depositor, any Support

Provider, the Indenture Trustee, the Certificate Paying Agent, any Noteholder

or to any Certificateholder, other than as expressly provided for herein or in

the Basic Documents;

 

(f)            the

Owner Trustee shall not be liable for the default or misconduct of the

Depositor, any Support Provider, the Indenture Trustee or the Master Servicer

under any of the Basic Documents or otherwise and the Owner Trustee shall have

no obligation or liability to perform the obligations under this Agreement or

the Basic Documents that are required to be performed by the Depositor or the Certificate

Paying Agent under this Agreement, by the Indenture Trustee under the

Indenture, the Series Supplement or any Related Document or the Master Servicer

under the Master Sale and Servicing Agreement or the Series Supplement;

 

(g)           the

Owner Trustee shall be under no obligation to exercise any of the rights or

powers vested in it by this Agreement, or to institute, conduct or defend any

litigation under this Agreement or otherwise or in relation to this Agreement

or any Basic Document at the request, order or direction of the Certificate

Majority or any of the Certificateholders, unless such Certificate Majority or

Certificateholders have offered to the Owner Trustee security or indemnity

satisfactory to it against the costs, expenses and liabilities that may be

incurred by the Owner Trustee therein or thereby.  The right of the Owner Trustee to perform any discretionary act

enumerated in this Agreement or in any Basic Document shall not be construed as

a duty, and the Owner Trustee shall not be answerable for other than its

negligence, bad faith or willful misconduct in the performance of any such act;

and

 

(h)           with

respect to the Insurer or Controlling Party, the Owner Trustee undertakes to

perform or observe only such of the covenants and obligations of the Owner

Trustee as are expressly set forth in this Agreement, and no implied covenants

or obligations with respect to the Insurer or Controlling Party shall be read

into this Agreement or any of the other Basic Documents against the Owner

Trustee.  The Owner Trustee shall not be

deemed to owe any fiduciary duty to the Insurer or Controlling Party, and shall

not be liable to any such person for the failure of the Trust to perform its

obligations to any such person other than as a result of the gross negligence

or willful misconduct of the Owner Trustee in the performance of its express

obligations under this Agreement.

 

21

 

Section 7.2.            Furnishing of Documents.  The Owner Trustee shall furnish to the

Certificateholders promptly upon receipt of a written request therefor,

duplicates or copies of all reports, notices, requests, demands, certificates,

financial statements and any other instruments furnished to the Owner Trustee

under the Basic Documents.

 

Section 7.3.            Representations and Warranties.  The Owner Trustee hereby represents and

warrants, in its individual capacity, to the Depositor, the Holders and any

Support Provider (which shall have relied on such representations and

warranties in issuing any policy relating to Series Support), that:

 

(a)           It

is a Delaware banking corporation, duly organized and validly existing under

the laws of the United States.  It has

all requisite corporate power and authority to execute, deliver and perform its

obligations under this Agreement.

 

(b)           It

has taken all corporate action necessary to authorize the execution and

delivery by it of this Agreement, and this Agreement will be executed and

delivered by one of its officers who is duly authorized to execute and deliver

this Agreement on its behalf.

 

(c)           Neither

the execution nor the delivery by it of this Agreement, nor the consummation by

it of the transactions contemplated hereby nor compliance by it with any of the

terms or provisions hereof will contravene any Federal or Delaware state law,

governmental rule or regulation governing the banking or trust powers of it or

any judgment or order binding on it, or constitute any default under its

charter documents or by-laws or any indenture, mortgage, contract, agreement or

instrument to which it is a party or by which any of its properties may be

bound.

 

(d)           This

Agreement constitutes the legal, valid and binding obligation of the Owner

Trustee, enforceable against it in accordance with its terms except as the

enforceability thereof may be limited by bankruptcy, insolvency, moratorium,

reorganization or other similar laws affecting the enforcement of creditors’

rights generally and by general principles of equity.

 

(e)           It

is authorized to exercise trust powers in the State of Delaware as and to the

extent contemplated herein and it has a principal place of business in the

State of Delaware.

 

Section 7.4.            Reliance; Advice of Counsel.  (a)  The Owner Trustee shall incur

no liability to anyone in acting upon any signature, instrument, notice,

resolution, request, consent, order, certificate, report, opinion, bond or

other document or paper believed by it to be genuine and believed by it to be

signed by the proper party or parties. 

The Owner Trustee may accept a certified copy of a resolution of the

board of directors or other governing body of any corporate party as conclusive

evidence that such resolution has been duly adopted by such body and that the

same is in full force and effect.  As to

any fact or matter the method of the determination of which is not specifically

prescribed herein, the Owner Trustee may for all purposes hereof rely on a

certificate, signed by the president or any vice president or by the treasurer,

secretary or

 

22

 

other authorized

officers of the relevant party, as to such fact or matter, and such certificate

shall constitute full protection to the Owner Trustee for any action taken or

omitted to be taken by it in good faith in reliance thereon.

 

(b)           In

the exercise or administration of the trusts hereunder and in the performance

of its duties and obligations under this Agreement or the Basic Documents, the

Owner Trustee (i) may act directly or through its agents or attorneys pursuant

to agreements entered into with any of them, and the Owner Trustee shall not be

liable for the conduct or misconduct of such agents or attorneys if such agents

or attorneys shall have been selected by the Owner Trustee with reasonable

care, and (ii) may consult with counsel, accountants and other skilled persons

to be selected with reasonable care and employed by it.  The Owner Trustee shall not be liable for

anything done, suffered or omitted in good faith by it in accordance with the

written opinion or advice of any such counsel, accountants or other such

persons and according to such opinion not contrary to this Agreement or any

Basic Document.

 

Section 7.5.            Not Acting in Individual Capacity.  Except as provided in this Article VII, in

accepting the trusts hereby created the Owner Trustee acts solely as Owner

Trustee hereunder and not in its individual capacity and all Persons having any

claim against the Owner Trustee by reason of the transactions contemplated by

this Agreement or any Basic Document shall look only to the Owner Trust Estate

for payment or satisfaction thereof.

 

Section 7.6.            Owner Trustee Not Liable for

Certificates or Receivables.  The

recitals contained herein and in certificated Certificates (other than the

signature and countersignature of the Owner Trustee on such Certificates) shall

be taken as the statements of the Depositor and the Owner Trustee assumes no

responsibility for the correctness thereof. 

The Owner Trustee makes no representations as to the validity or sufficiency

of this Agreement, of any Basic Document or of the Certificates (other than the

signature and countersignature of the Owner Trustee on certificated

Certificates) or the Notes, or of any Receivable or related documents.  The Owner Trustee shall at no time have any

responsibility or liability for or with respect to the legality, validity and

enforceability of any Receivable, or the perfection and priority of any

security interest created by any Receivable in any Financed Vehicle or the

maintenance of any such perfection and priority, or for or with respect to the

sufficiency of the Owner Trust Estate or its ability to generate the payments

to be distributed to Certificateholders under this Agreement or the Noteholders

under the Indenture, including, without limitation:  the existence, condition and ownership of any Financed Vehicle;

the existence and enforceability of any insurance thereon; the existence and

contents of any Receivable on any computer or other record thereof; the

validity of the assignment of any Receivable to the Trust or of any intervening

assignment; the completeness of any Receivable; the performance or enforcement

of any Receivable; the compliance by the Depositor, the Master Servicer or any

other Person with any warranty or representation made under any Basic Document

or in any related document or the accuracy of any such warranty or

representation or any action of the Indenture Trustee or the Master Servicer or

any subservicer taken in the name of the Owner Trustee.

 

23

 

Section 7.7.            Owner Trustee May Own

Certificates and Notes.  The Owner

Trustee in its individual or any other capacity may become the owner or pledgee

of Certificates or Notes and may deal with the Depositor, the Indenture Trustee

and the Master Servicer in banking transactions with the same rights as it

would have if it were not Owner Trustee.

 

Section 7.8.            Payments from Owner Trust Estate  All payments to be made by the Owner Trustee

or any Certificate Paying Agent under this Agreement or any of the Basic Documents

shall be made only from the income and proceeds of the Owner Trust Estate and

only to the extent that the Owner Trustee shall have received income or

proceeds from the Owner Trust Estate to make such payments in accordance with

the terms hereof.  The Owner Trustee, or

any successor thereto, in its individual capacity, shall not be liable for any

amounts payable under this Agreement or any of the Basic Documents.

 

Section 7.9.            Doing Business in Other

Jurisdictions.  Notwithstanding

anything contained herein to the contrary, the Owner Trustee (in its individual

and trustee capacities) shall not be required to take any action in any

jurisdiction other than in the State of Delaware if the taking of such action

will, even after the appointment of a co-trustee or separate trustee in

accordance with Section 10.5 hereof, (i) require the consent or approval

or authorization or order of or the giving of notice to, or the registration

with or the taking of any other action in respect of, any state or other governmental

authority or agency of any jurisdiction other than the State of Delaware; (ii)

result in any fee, tax or other governmental charge under the laws of the State

of Delaware becoming payable by the Owner Trustee (in its individual capacity);

or (iii) subject the Owner Trustee (in its individual capacity) to personal

jurisdiction in any jurisdiction other than the State of Delaware for causes of

action arising from acts unrelated to the consummation of the transactions by

the Owner Trustee (in its individual and trustee capacities) contemplated

hereby.

 

ARTICLE

VIII

Compensation of Owner Trustee

 

Section 8.1.            Owner Trustee’s Fees and Expenses.  The Owner Trustee shall receive as

compensation for its services hereunder such fees as have been separately agreed

upon before the date hereof between Household and the Owner Trustee, and the

Owner Trustee shall be entitled to be reimbursed by the Depositor for its other

reasonable expenses hereunder, including the reasonable compensation, expenses

and disbursements of such agents, representatives, experts and counsel as the

Owner Trustee may employ in connection with the exercise and performance of its

respective rights and duties hereunder or under the Basic Documents.

 

Section 8.2.            Indemnification.  To the fullest extent permitted by

applicable law, the Depositor shall be liable as primary obligor for, and shall

indemnify the Owner Trustee (in its individual and trustee capacities) and its

officers, directors, successors, assigns, agents and servants (collectively,

the “Indemnified Parties”) from

 

24

 

and against, any

and all liabilities, obligations, losses, damages, taxes, claims, actions and

suits, and any and all reasonable costs, expenses and disbursements (including

reasonable legal fees and expenses) of any kind and nature whatsoever

(collectively, “Expenses”) which may at any time be imposed on, incurred by, or

asserted against the Owner Trustee (in its trust or individual capacities) or

any Indemnified Party in any way relating to or arising out of this Agreement

or the Basic Documents, the Owner Trust Estate, the administration of the Owner

Trust Estate or the action or inaction of the Owner Trustee hereunder, except

only that the Depositor shall not be liable for or required to indemnify the

Owner Trustee from and against Expenses arising or resulting from any of the

matters described in the third sentence of Section 7.1.  The indemnities contained in this Section 8.2

and the rights under Section 8.1 shall survive the resignation or

termination of the Owner Trustee or the termination of this Agreement.  In any event of any claim, action or

proceeding for which indemnity will be sought pursuant to this Section, the Owner

Trustee’s choice of legal counsel shall be subject to the approval of the

Depositor which approval shall not be unreasonably withheld.

 

Section 8.3.            Payments to the Owner Trustee.  Any amounts paid to the Owner Trustee in its

trustee capacity pursuant to this Article VIII shall be deemed not to be a part

of the Owner Trust Estate immediately after such payment and any amounts so

paid to the Owner Trustee, in its individual capacity shall not be so paid out

of the Owner Trust Estate but shall be the property of the Owner Trustee in its

individual capacity.

 

Section 8.4.            Non-recourse Obligations.  Notwithstanding anything in this Agreement

or any Basic Document, the Owner Trustee agrees in its individual capacity and

in its capacity as Owner Trustee for the Trust that all obligations of the

Trust to the Owner Trustee individually or as Owner Trustee for the Trust shall

be recourse to the Owner Trust Estate only and specifically shall not be

recourse to the assets of any Certificateholder.

 

ARTICLE

IX

Termination of Agreement

 

Section 9.1.            Termination of Agreement.  (a)  This Agreement shall

terminate and the Trust shall wind up, dissolve and be of no further force or

effect upon the latest to occur of (i) the maturity or other liquidation of the

last Receivable (including the optional purchase by the Depositor or the Master

Servicer of the corpus of the Trust as described in Section 11.1 of the

Master Sale and Servicing Agreement) and the subsequent distribution of amounts

in respect of such Receivables as provided in the Basic Documents and, with respect

to amounts released from the Lien of the Indenture, distribution thereof to the

Certificateholders, or (ii) the payment to Noteholders and Certificateholders

of all amounts required to be paid to them pursuant to the Indenture and this

Agreement, including, with respect to amounts released from the Lien of the

Indenture, distribution thereof to the Certificateholders and the payment to

any Support Provider of all amounts payable or reimbursable to it pursuant to

the Series Supplement; provided, however, that the rights to

indemnification under Section 8.2 and the rights under Section 8.1

shall survive the termination of the Trust. 

The Master Servicer shall

 

25

 

promptly notify

the Owner Trustee of any prospective termination pursuant to this

Section 9.1.  The bankruptcy,

liquidation, dissolution, death or incapacity of any Certificateholder shall

not (x) operate to terminate this Agreement or the Trust, nor (y) entitle such

Certificateholder’s legal representatives or heirs to claim an accounting or to

take any action or proceeding in any court for a partition or winding up of all

or any part of the Trust or Owner Trust Estate nor (z) otherwise affect the

rights, obligations and liabilities of the parties hereto.

 

(b)           Except

as provided in clause (a), neither the Depositor, the Insurer nor any other

Certificateholder shall be entitled to revoke or terminate the Trust.

 

(c)           If

any Certificates are in certificated form, notice of any termination of a

Series Trust Estate, specifying the Distribution Date upon which the

Certificateholders of such Series shall surrender their Certificates to the

Certificate Paying Agent for payment of the final distribution and

cancellation, shall be given by the Owner Trustee by letter to

Certificateholders of such Series mailed within five Business Days of receipt

of notice of such termination given pursuant to Section 9.1(a) hereof, stating

(i) the Distribution Date upon or with respect to which final payment of the

Certificates of such Series shall be made upon presentation and surrender of

the Certificates of such Series at the office of the Certificate Paying Agent

therein designated, (ii) the amount of any such final payment, (iii) that the

Record Date otherwise applicable to such Distribution Date is not applicable,

payments being made only upon presentation and surrender of the Certificates of

such Series at the office of the Certificate Paying Agent therein specified and

(iv) interest will cease to accrue on the Certificates of such Series.  The Owner Trustee shall give such notice to

the Certificate Registrar (if other than the Owner Trustee) and the Certificate

Paying Agent at the time such notice is given to Certificateholders.  Upon presentation and surrender of the Certificates

of such Series, the Certificate Paying Agent shall cause to be distributed to

Certificateholders of such Series amounts distributable pursuant to the Series

Supplement.

 

(d)           If  any Certificates are in certificated form,

in the event that all of the Certificateholders holding certificated

Certificates of such Series shall not surrender their Certificates for

cancellation within six months after the date specified in the above-mentioned

written notice, the Certificate Paying Agent shall give a second written notice

to the remaining Certificateholders holding certificated Certificates of such

Series to surrender their Certificates for cancellation and receive the final

distribution with respect thereto.  If within

one year after the second notice all the certificated Certificates of such

Series shall not have been surrendered for cancellation, the Certificate Paying

Agent may take appropriate steps, or may appoint an agent to take appropriate

steps, to contact the remaining Certificateholders holding certificated

Certificates concerning surrender of their Certificates, and the cost thereof

shall be paid out of the funds and other Series Trust Estate assets that shall

remain subject to this Agreement.  Any

funds remaining in the Trust after exhaustion of such remedies shall be

distributed, subject to applicable escheat laws, by the Certificate Paying

Agent to the Depositor and Holders shall look solely to the Depositor for

payment.

 

26

 

(e)           Any

funds remaining in the Trust after funds for final distribution have been

distributed or set aside for distribution shall be distributed by the

Certificate Paying Agent to the Depositor.

 

(f)            Upon

the winding up of the Trust and its dissolution, the Owner Trustee shall cause

the Certificate of Trust to be canceled by filing a certificate of cancellation

with the Secretary of State in accordance with the provisions of

Section 3810 of the Statutory Trust Statute.

 

ARTICLE

X

Successor Owner Trustees and Additional Owner Trustees

 

Section 10.1.          Eligibility Requirements for Owner

Trustee.  The Owner Trustee shall at

all times be a corporation or national banking association (i) satisfying the

provisions of Section 3807(a) of the Statutory Trust Statute, (ii) authorized to

exercise corporate trust powers; (iii) having a combined capital and surplus of

at least $50,000,000 and subject to supervision or examination by Federal or

State authorities; (iv) having (or having a parent which has) a rating of at

least Baa3 by Moody’s or A-1 by Standard & Poors; and (v) acceptable to the

Certificateholders.  If such corporation

shall publish reports of condition at least annually, pursuant to law or to the

requirements of the aforesaid supervising or examining authority, then for the purpose

of this Section, the combined capital and surplus of such corporation shall be

deemed to be its combined capital and surplus as set forth in its most recent

report of condition so published.  In

case at any time the Owner Trustee shall cease to be eligible in accordance

with the provisions of this Section, the Owner Trustee shall resign immediately

in the manner and with the effect specified in Section 10.2.

 

Section 10.2.          Resignation or Removal of Owner

Trustee.  The Owner Trustee may at

any time resign and be discharged from the trusts hereby created by giving

written notice thereof to the Depositor (or in the event that the Depositor is

not the sole Certificateholder, the Certificate Majority), any Support Provider

and the Master Servicer.  Upon receiving

such notice of resignation, the Depositor shall promptly appoint a successor

Owner Trustee, meeting the qualifications set forth in Section 10.1

herein, by written instrument, in duplicate, one copy of which instrument shall

be delivered to the resigning Owner Trustee and one copy to the successor Owner

Trustee; provided  that the Depositor and the Insurer shall have

received written confirmation from each of the Rating Agencies that the

proposed appointment will not result in an increased capital charge to any

Support Provider by either of the Rating Agencies.  If no successor Owner Trustee shall have been so appointed and

have accepted appointment within 30 days after the giving of such notice of

resignation, the resigning Owner Trustee or any Support Provider may petition

any court of competent jurisdiction for the appointment of a successor Owner

Trustee.

 

If at any time the Owner Trustee shall cease to be

eligible in accordance with the provisions of Section 10.1 and shall fail

to resign after written request therefor by the Depositor or the Insurer (for

so long as it is the Controlling Party), or if at any time

 

27

 

the Owner Trustee

shall be legally unable to act, or shall be adjudged bankrupt or insolvent, or

a receiver of the Owner Trustee or of its respective property shall be

appointed, or any public officer shall take charge or control of the Owner

Trustee or of its respective property or affairs for the purpose of

rehabilitation, conservation or liquidation, then the Depositor or the Insurer

(for so long as it is the Controlling Party) may remove the Owner Trustee.  If the Depositor or the Insurer shall remove

the Owner Trustee under the authority of the immediately preceding sentence,

the Depositor shall promptly appoint a successor Owner Trustee meeting the

qualifications set forth in Section 10.1 herein and acceptable to the

Insurer (for so long as it is the Controlling Party), by written instrument, in

triplicate, one copy of which instrument shall be delivered to the outgoing

Owner Trustee so removed, one copy to any Support Provider and one copy to the

successor Owner Trustee.

 

Any resignation or removal of the Owner Trustee and

appointment of a successor Owner Trustee pursuant to any of the provisions of

this Section 10.2 shall not become effective until acceptance of appointment by

the successor Owner Trustee pursuant to Section 10.3 and payment of all

fees and expenses owed to the outgoing Owner Trustee.  The Depositor shall provide notice of such resignation or removal

of the Owner Trustee to each of the Rating Agencies.

 

Section 10.3.          Successor Owner Trustee.  Any successor Owner Trustee appointed

pursuant to Section 10.2 shall execute, acknowledge and deliver to the

Depositor, the Master Servicer, any Support Provider and to its predecessor

Owner Trustee an instrument accepting such appointment under this Agreement,

and thereupon the resignation or removal of its predecessor shall become

effective and the successor Owner Trustee, without any further act, deed or

conveyance, shall become fully vested with all the rights, powers, duties and

obligations of its predecessor under this Agreement, with like effect as if

originally named as Owner Trustee.  The

predecessor Owner Trustee shall upon payment of its fees and expenses deliver

to the successor Owner Trustee all documents and statements and monies held by

it under this Agreement; and the Depositor and the predecessor Owner Trustee

shall execute and deliver such instruments and do such other things as may

reasonably be required for fully and certainly vesting and confirming in the

successor Owner Trustee all such rights, powers, duties and obligations.

 

No successor Owner Trustee shall accept appointment as

provided in this Section 10.3 unless at the time of such acceptance such

successor Owner Trustee shall be eligible pursuant to Section 10.1.

 

Upon acceptance of appointment by a successor Owner

Trustee pursuant to this Section, the Master Servicer shall mail notice of the

successor of such Owner Trustee to all Certificateholders, the Insurer, the

Indenture Trustee, the Noteholders and the Rating Agencies.  If the Master Servicer shall fail to mail

such notice within 10 days after acceptance of appointment by the successor

Owner Trustee, the successor Owner Trustee shall cause such notice to be mailed

at the expense of the Master Servicer.

 

28

 

Any successor Owner Trustee appointed pursuant to this

Section 10.3 shall promptly file an amendment to the Certificate of Trust with

the Secretary of State identifying the name and principal place of business of

such successor Owner Trustee in the State of Delaware.

 

Section 10.4.          Merger or Consolidation of Owner

Trustee.  Any corporation into which

the Owner Trustee may be merged or converted or with which it may be

consolidated, or any corporation resulting from any merger, conversion or

consolidation to which the Owner Trustee shall be a party, or any corporation

succeeding to all or substantially all of the corporate trust business of the

Owner Trustee, shall be the successor of the Owner Trustee hereunder, provided

such corporation shall be eligible pursuant to Section 10.1, without the

execution or filing of any instrument or any further act on the part of any of

the parties hereto, anything herein to the contrary notwithstanding; provided,

further, that the Owner Trustee shall mail notice of such merger or

consolidation to the Rating Agencies, the Depositor and the Master Servicer.

 

Section 10.5.          Appointment of Co-Trustee or

Separate Trustee.  Notwithstanding

any other provisions of this Agreement, at any time, for the purpose of meeting

any legal requirements of any jurisdiction in which any part of the Owner Trust

Estate or any Financed Vehicle may at the time be located, the Master Servicer

and the Owner Trustee acting jointly shall have the power and shall execute and

deliver all instruments to appoint one or more Persons approved by the Owner

Trustee and any Support Provider to act as co-trustee, jointly with the Owner

Trustee, or separate trustee or separate trustees, of all or any part of the

Owner Trust Estate, and to vest in such Person, in such capacity, such title to

the Trust, or any part thereof, and, subject to the other provisions of this

Section, such powers, duties, obligations, rights and trusts as the Master

Servicer and the Owner Trustee may consider necessary or desirable.  If the Master Servicer shall not have joined

in such appointment within 15 days after the receipt by it of a request so to

do, the Owner Trustee and the Insurer (for so long as it is the Controlling

Party) and, if the Insurer is not the Controlling Party, subject to the

approval of the Certificate Majority (which approval shall not be unreasonably

withheld), shall have the power to make such appointment.  No co-trustee or separate trustee under this

Agreement shall be required to meet the terms of eligibility as a successor

trustee pursuant to Section 10.1 and no notice of the appointment of any

co-trustee or separate trustee shall be required pursuant to Section 10.3.

 

Each separate trustee and co-trustee shall, to the

extent permitted by law, be appointed and act subject to the following

provisions and conditions:

 

(i)            all

rights, powers, duties and obligations conferred or imposed upon the Owner

Trustee shall be conferred upon and exercised or performed by the Owner Trustee

and such separate trustee or co-trustee jointly (it being understood that such

separate trustee or co-trustee is not authorized to act separately without the

Owner Trustee joining in such act), except to the extent that under any law of

any jurisdiction in which any particular act or acts are to be performed, the

Owner Trustee shall be incompetent or unqualified to perform such act or acts,

in which event such rights, powers, duties and obligations

 

29

 

(including the

holding of title to the Trust or any portion thereof in any such jurisdiction)

shall be exercised and performed singly by such separate trustee or co-trustee,

but solely at the direction of the Owner Trustee;

 

(ii)           no

trustee under this Agreement shall be personally liable by reason of any act or

omission of any other trustee under this Agreement; and

 

(iii)          the

Master Servicer, the Insurer (for so long as it is the Controlling Party) and

the Owner Trustee acting jointly may at any time accept the resignation of or

remove any separate trustee or co-trustee.

 

Any notice, request or other writing given to the

Owner Trustee shall be deemed to have been given to each of the then separate

trustees and co-trustees, as effectively as if given to each of them.  Every instrument appointing any separate

trustee or co-trustee shall refer to this Agreement and the conditions of this

Article.  Each separate trustee and

co-trustee, upon its acceptance of the trusts conferred, shall be vested with

the estates or property specified in its instrument of appointment, either

jointly with the Owner Trustee or separately, as may be provided therein,

subject to all the provisions of this Agreement, specifically including every

provision of this Agreement relating to the conduct of, affecting the liability

of, or affording protection to, the Owner Trustee.  Each such instrument shall be filed with the Owner Trustee and a

copy thereof given to the Master Servicer and the Insurer.

 

Any separate trustee or co-trustee may at any time

appoint the Owner Trustee, its agent or attorney-in-fact with full power and

authority, to the extent not prohibited by law, to do any lawful act under or

in respect of this Agreement on its behalf and in its name.  If any separate trustee or co-trustee shall

die, become incapable of acting, resign or be removed, all of its estates,

properties, rights, remedies and trusts shall vest in and be exercised by the

Owner Trustee, to the extent permitted by law, without the appointment of a new

or successor trustee.

 

ARTICLE

XI

Miscellaneous

 

Section 11.1.          Supplements and Amendments.  (a) 

This Agreement may be amended from time to time by the parties hereto

with the consent of the Insurer (for so long as it is the Controlling Party),

by a written instrument signed by each of them, without the consent of any of

the Securityholders; provided that an Opinion of Counsel for the

Depositor (which Opinion of Counsel may, as to factual matters, rely upon

Officer’s Certificates of the Depositor) is addressed and delivered to the

Owner Trustee, dated the date of any such amendment, to the effect that the

conditions precedent to any such amendment have been satisfied and the

Depositor shall have delivered to the Owner Trustee an Officer’s Certificate

dated the date of any such Amendment, stating that the Depositor reasonably

believes that such Amendment will not have a material adverse effect on the

Securityholders.

 

30

 

(b)           This

Agreement may also be amended from time to time with the consent of the Insurer

(for so long as it is the Controlling Party), the consent of the Noteholders

evidencing not less than a majority of the Outstanding Amount of the Notes, and

the consent of the Certificateholders representing at least a 50% Percentage

Interest, for which the Seller has not delivered an Officer’s Certificate

stating that there is no material adverse effect, for the purpose of adding any

provisions to or changing in any manner or eliminating any of the provisions of

this Agreement or of modifying in any manner the rights of the Securityholders;

provided, however, that no such amendment shall (i) reduce

in any manner the amount of, or delay the timing of, payments received that are

required to be distributed on any Security without the consent of the related

Securityholder, or (ii) reduce the aforesaid percentage of Securities the

Holder of which are required to consent to any such amendment, without the

consent of the Holders of all such Certificates then outstanding or cause any

material adverse tax consequences to any Certificateholders or Noteholders.

 

Prior to the execution of any such amendment or

consent, the Owner Trustee shall furnish written notification of the substance

of such amendment or consent to each Certificateholder, the Indenture Trustee,

the Insurer and each of the Rating Agencies.

 

It shall not be necessary for the consent of

Certificateholders, the Noteholders or the Indenture Trustee pursuant to this

Section to approve the particular form of any proposed amendment or consent,

but it shall be sufficient if such consent shall approve the substance

thereof.  The manner of obtaining such

consents (and any other consents of Certificateholders provided for in this

Agreement or in any other Basic Document) and of evidencing the authorization

of the execution thereof by Certificateholders shall be subject to such

reasonable requirements as the Owner Trustee may prescribe.  Promptly after the execution of any

amendment to the Certificate of Trust, including, without limitation,

amendments pursuant this Section and pursuant to Section 10A.4, the Owner

Trustee shall cause the filing of such amendment with the Secretary of State.

 

(c)           The

Owner Trustee shall not be required to enter into any amendment to this

Agreement which adversely affects their respective rights, duties or immunities

under this Agreement.

 

Section 11.2.          No Legal Title to Owner Trust Estate

in Certificateholders.  The

Certificateholders shall not have legal title to any part of the Series Trust

Estate.  The Certificateholders shall be

entitled to receive distributions with respect to their undivided ownership

interest therein only in accordance with Articles V and IX.  No transfer, by operation of law or

otherwise, of any right, title or interest of the Certificateholders to and in

their ownership interest in the Series Trust Estate shall operate to terminate

this Agreement or the trusts hereunder or entitle any transferee to an

accounting or to the transfer to it of legal title to any part of the Series

Trust Estate.

 

Section 11.3.          Limitations on Rights of Others.  The provisions of this Agreement are solely

for the benefit of the Owner Trustee, the Depositor, the 

 

31

 

Certificateholders,

the Master Servicer and any Support Provider, the Indenture Trustee and the

Noteholders, and nothing in this Agreement, whether express or implied, shall be

construed to give to any other Person any legal or equitable right, remedy or

claim in the Owner Trust Estate or under or in respect of this Agreement or any

covenants, conditions or provisions contained herein.

 

Section 11.4.          Notices.  (a)  Unless otherwise expressly

specified or permitted by the terms hereof, all notices shall be in writing and

shall be deemed given upon receipt personally delivered, delivered by overnight

courier or mailed first class mail or certified mail, in each case return receipt

requested, and shall be deemed to have been duly given upon receipt, if to the

Owner Trustee, addressed to its respective Corporate Trust Office; if to the

Depositor, addressed to Household Auto Receivables Corporation, 1111 Town

Center Drive, Las Vegas, Nevada 89134, with a copy to Household Finance

Corporation, 2700 Sanders Road, Prospect Heights, Illinois 60070, Attn:

Treasurer; if to any Support Provider, at the address of such Support Provider

as set forth in the Series Supplement; or, as to each party, at such other

address as shall be designated by such party in a written notice to each other

party.

 

(b)           Any

notice required or permitted to be given to a Certificateholder shall be given

by first-class mail, postage prepaid, at the address of such Holder as shown in

the Certificate Register.  Any notice so

mailed within the time prescribed in this Agreement shall be conclusively

presumed to have been duly given, whether or not the Certificateholder receives

such notice.

 

Section 11.5.          Severability.  Any provision of this Agreement that is

prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,

be ineffective to the extent of such prohibition or unenforceability without

invalidating the remaining provisions hereof, and any such prohibition or

unenforceability in any jurisdiction shall not invalidate or render

unenforceable such provision in any other jurisdiction.

 

Section 11.6.          Separate Counterparts.  This Agreement may be executed by the

parties hereto in separate counterparts, each of which when so executed and

delivered shall be an original, but all such counterparts shall together

constitute but one and the same instrument.

 

Section 11.7.          Assignments; Support Provider.  This Agreement shall inure to the benefit of

and be binding upon the parties hereto and their respective successors and

permitted assigns.  This Agreement shall

also inure to the benefit of any Support Provider.  Without limiting the generality of the foregoing, all covenants

and agreements in this Agreement which confer rights upon any Support Provider

shall be for the benefit of and run directly to any Support Provider, and any

Support Provider shall be entitled to rely on and enforce such covenants,

subject, however, to the limitations on such rights provided in this Agreement

and the Basic Documents.  The Support

Provider, if any, may disclaim any of its rights and powers under this

Agreement (but not its duties and obligations under any Series Support) upon

delivery of a written notice to the Owner Trustee.

 

32

 

Section 11.8.          Covenants of the Depositor.  The Depositor will not at any time institute

against the Trust any bankruptcy proceedings under any United States federal or

state bankruptcy or similar law in connection with any obligations relating to

the Certificates, the Notes, this Agreement or any of the Basic Documents.

 

Section 11.9.          No Petition.  To the fullest extent permitted by

applicable law, the Owner Trustee (not in its individual capacity but solely as

Owner Trustee), by entering into this Agreement, each Certificateholder, by

accepting a Certificate, and the Indenture Trustee and each Noteholder by

accepting the benefits of this Agreement, hereby covenants and agrees that they

will not at any time institute against the Depositor, or join in any

institution against the Depositor of, any bankruptcy, reorganization,

arrangement, insolvency or liquidation proceedings, or other proceedings under

any United States Federal or state bankruptcy or similar law in connection with

any obligations relating to the Certificates, the Notes, this Agreement, any of

the Basic Documents, the Series Supplement or any Related Documents.

 

Section 11.10.        No Recourse.  Each Certificateholder by accepting a

Certificate acknowledges that such Certificateholder’s Certificates represent

beneficial interests in the Owner Trust Estate only and do not represent

interests in or obligations of the Master Servicer, the Depositor, the Owner

Trustee, the Indenture Trustee, any Support Provider or any Affiliate thereof

and no recourse may be had against such parties or their assets, except as may

be expressly set forth or contemplated in this Agreement, the Certificates, the

Basic Documents, the Series Supplement or any Related Documents.

 

Section 11.11.        Headings.  The headings of the various Articles and

Sections herein are for convenience of reference only and shall not define or

limit any of the terms or provisions hereof.

 

Section 11.12.        GOVERNING LAW.  THIS AGREEMENT SHALL BE CONSTRUED IN

ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS

CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE

PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

Section 11.13.        Master Servicer.  The Master Servicer is authorized to

prepare, or cause to be prepared, execute and deliver on behalf of the Trust

all such documents, reports, filings, instruments, certificates and opinions as

it shall be the duty of the Trust or Owner Trustee to prepare, file or deliver

pursuant to the Basic Documents, the Series Supplement or any Related

Documents.  Upon written request, the

Owner Trustee shall execute and deliver to the Master Servicer a limited power

of attorney appointing the Master Servicer the Trust’s agent and

attorney-in-fact to prepare, or cause to be prepared, execute and deliver all

such documents, reports, filings, instruments, certificates and opinions.

 

Section 11.14.        Third-Party Beneficiary.  The parties hereto agree that the Insurer is

a third-party beneficiary hereof.

 

33

 

IN WITNESS WHEREOF, the parties hereto have caused

this Agreement to be duly executed by their respective officers hereunto duly

authorized as of the day and year first above written.

 

	

   

  	

   

  	

   

  
	

   

  	

  WILMINGTON TRUST

  COMPANY,

  	

   

  
	

   

  	

  as

  Owner Trustee

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Anita E. Dallago

  	

   

  
	

   

  	

   

  	

  Name: Anita E. Dallago

  	

   

  
	

   

  	

   

  	

  Title:  Senior Financial Services Officer

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  HOUSEHOLD AUTO

  RECEIVABLES

  	

   

  
	

   

  	

  CORPORATION,

  	

   

  
	

   

  	

  as Depositor

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Steven H. Smith

  	

   

  
	

   

  	

   

  	

  Name:  Steven H. Smith

  	

   

  
	

   

  	

   

  	

  Title:  Vice President and Assistant Treasurer

  
	

   

  	

   

  	

   

  
	

  Acknowledged and

  Agreed:

  	

   

  	

   

  
	

  HOUSEHOLD FINANCE

  CORPORATION,

  	

   

  	

   

  
	

  as Master Servicer

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  By:

  	

    /s/ B. B. Moss, Jr.

  	

   

  	

   

  	

   

  
	

   

  	

  Name: B. B. Moss, Jr.

  	

   

  	

   

  	

   

  
	

   

  	

  Title:  Vice President and Treasurer

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  U.S. BANK NATIONAL

  ASSOCIATION

  	

   

  	

   

  	

   

  
	

  not

  in its individual capacity

  	

   

  	

   

  	

   

  
	

  but

  solely as Certificate Paying Agent

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

    /s/ Patricia M. Child

  	

   

  	

   

  	

   

  
	

   

  	

  Name: Patricia M. Child

  	

   

  	

   

  	

   

  
	

   

  	

  Title:  Vice President

  	

   

  	

   

  	

   

  
							

 

[Signature Page

for Amended and Restated Trust Agreement]

 

34

 

EXHIBIT A

 

[FORM OF

CERTIFICATE]

NUMBER

 

HOUSEHOLD

AUTOMOTIVE TRUST 2003-1

CERTIFICATE

 

SEE REVERSE FOR

CERTAIN DEFINITIONS

 

THIS

CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS

AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE IN RELIANCE

UPON EXEMPTIONS PROVIDED BY THE SECURITIES ACT AND SUCH STATE SECURITIES

LAWS.  NO RESALE OR OTHER TRANSFER OF

THIS CERTIFICATE MAY BE MADE UNLESS SUCH RESALE OR TRANSFER (A) IS MADE IN

ACCORDANCE WITH SECTION 3.4 OF THE AMENDED AND RESTATED TRUST AGREEMENT

PERTAINING TO THE HOUSEHOLD AUTOMOTIVE TRUST 2003-1 (THE “AGREEMENT”) AND (B)

IS MADE (i) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE

SECURITIES ACT, (ii) IN A TRANSACTION EXEMPT FROM THE REGISTRATION

REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, (iii)

TO THE SELLER OR (iv) TO A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES IS A

QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE

SECURITIES ACT THAT IS AWARE THAT THE RESALE OR OTHER TRANSFER IS BEING MADE IN

RELIANCE ON RULE 144A AND (C) UPON THE SATISFACTION OF CERTAIN OTHER

REQUIREMENTS SPECIFIED IN THE AGREEMENT. 

NEITHER THE DEPOSITOR, THE MASTER SERVICER, THE TRUST NOR THE OWNER

TRUSTEE IS OBLIGATED TO REGISTER THE CERTIFICATES UNDER THE SECURITIES ACT OR

ANY APPLICABLE STATE SECURITIES LAWS.

CERTIFICATE

 

evidencing a beneficial

ownership interest in the assets of the Trust relating to the Series Trust

Estate, which includes a pool of motor vehicle retail installment sale

contracts sold to the Trust by Household Auto Receivables Corporation.

 

(This Certificate does

not represent an interest in or obligation of Household Auto Receivables

Corporation or any of its Affiliates, except to the extent described below.)

 

THIS CERTIFIES THAT Household Auto Receivables

Corporation is the registered owner of a fully-paid and, to the fullest extent

permitted by applicable law, nonassessable beneficial ownership interest

representing a 100% Percentage Interest in the assets of Household Automotive

Trust 2003-1 (the “Trust”) formed by Household

 

A-1

 

Auto Receivables Corporation, a Nevada corporation (the “Depositor”)

and the Series Trust Estate.

 

OWNER TRUSTEE’S

CERTIFICATE OF AUTHENTICATION

 

This is one of the

Certificates referred to in the within-mentioned Agreement.

 

WILMINGTON TRUST COMPANY

not in its individual

capacity but solely as

Owner Trustee

 

	

  by

  	

   

  	

  Authenticating

  Agent

  
	

  by

  	

   

  

 

Household Automotive Trust 2003-1 (the “Trust”), was

created pursuant to a Trust Agreement, dated as of April 15, 2003 (the

“Agreement”), between the Depositor and Wilmington Trust Company, as owner trustee

(the “Owner Trustee”), as amended and restated as of May 29, 2003 and as

supplemented by a Series Supplement dated as of May 29, 2003 (the “Series

Supplement”).  A summary of certain of

the pertinent provisions of the Agreement and Series Supplement is set forth

below.  To the extent not otherwise

defined herein, the capitalized terms used herein have the meanings assigned to

them in the Agreement and the Series Supplement.

 

This certificate is one of the duly authorized

certificates of Trust of Household Automotive Trust 2003-1 designated as

Certificates.

 

This Certificate is issued under and is subject to the

terms, provisions and conditions of the Agreement and the Series Supplement, to

which Agreement the holder of this Certificate by virtue of the acceptance

hereof assents and by which such holder is bound.  The property of the Trust consists of the Series Trust Estate

which includes a pool of motor vehicle retail installment sale contracts (the

“Receivables”), all monies due thereunder on or after specified Cutoff Dates,

security interests in the vehicles financed thereby, certain bank accounts and

the proceeds thereof, proceeds from claims on certain insurance policies and

certain other rights under the Agreement and the Master Sale and Servicing Agreement

and each related Transfer Agreement, all right, to and interest of, the

Depositor in and to (i) the Master Receivables Purchase Agreement dated as of

December 18, 2001 between Household Automotive Finance Corporation and the

Depositor, as such agreement may be amended or supplemented from time to time,

(ii) the Master Receivables Purchase Agreement dated as of June 24, 2002

between Household Automotive Credit Corporation and the Depositor, as such

agreement may be amended or supplemented from time to time, (iii) the Master

Receivables Purchase Agreement dated as of August 8, 2002 between Household

Automotive Credit Corporation and the Depositor, as such agreement may be

amended or supplemented from time to time, and (iv) the Master Receivables Purchase

Agreement dated as of

 

A-2

 

November 18, 2002,

between Household Automotive Finance Corporation and the Depositor, as such

agreement may be amended or supplemented from time to time.

 

The Notes have been issued pursuant to an Indenture

dated as of May 29, 2003 (the “Indenture”), among the Trust, Household Finance

Corporation, as Master Servicer and U.S. Bank National Association, as

Indenture Trustee and the Series Supplement.

 

Under the Series Supplement, there will be distributed

on the 17th day of each month or, if such 17th day is not a Business Day, the

next Business Day (the “Distribution Date”), commencing on June 17, 2003, to

the Person in whose name this Certificate is registered at the close of business

on the Business Day preceding such Distribution Date (the “Record Date”) such

Certificateholder’s fractional undivided interest in any amount to be

distributed to Certificateholders on such Distribution Date.

 

The holder of this Certificate acknowledges and agrees

that its rights to receive distributions in respect of this Certificate are

subordinated to the rights of the Noteholders as described in the Master Sale

and Servicing Agreement, the Indenture, the Agreement and the Series

Supplement, as applicable.

 

Distributions on this Certificate will be made as

provided in the Agreement by the Owner Trustee by wire transfer or check mailed

to the Certificateholder of record in the Certificate Register without the

presentation or surrender of this Certificate or the making of any notation

hereon.  Except as otherwise provided in

the Agreement and notwithstanding the above, the final distribution on this

Certificate will be made after due notice by the Owner Trustee of the pendency

of such distribution and only upon presentation and surrender of this

Certificate at the office or agency maintained for the purpose by the Owner

Trustee in the Corporate Trust Office.

 

Reference is hereby made to the further provisions of

this Certificate set forth on the reverse hereof, which further provisions

shall for all purposes have the same effect as if set forth at this place.

 

Unless the certificate of authentication hereon shall

have been executed by an authorized officer of the Owner Trustee, by manual

signature, this Certificate shall not entitle the holder hereof to any benefit

under the Agreement or the Master Sale and Servicing Agreement or be valid for

any purpose.

 

THIS

CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF

DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE

OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED

IN ACCORDANCE WITH SUCH LAWS.

 

A-3

 

IN WITNESS WHEREOF, the Owner Trustee, on behalf of

the Trust and not in its individual capacity, has caused this Certificate to be

duly executed.

 

	

   

  	

  HOUSEHOLD AUTOMOTIVE

  TRUST 2003-1

  
	

   

  	

   

  	

   

  
	

   

  	

  By: WILMINGTON TRUST

  COMPANY not in its individual capacity but solely as Owner Trustee

  
	

   

  	

   

  	

   

  
	

  Dated:

  	

  By:

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

   

  	

  Name:

  	

   

  
	

   

  	

   

  	

  Title:

  	

   

  

 

A-4

 

(Reverse of

Certificate)

 

The Certificates do not represent an obligation of, or

an interest in, the Depositor, the Master Servicer, the Owner Trustee or any

Affiliates of any of them and no recourse may be had against such parties or

their assets, except as may be expressly set forth or contemplated herein or in

the Agreement, the Indenture, the Basic Documents or any Related Documents.  In addition, this Certificate is not

guaranteed by any governmental agency or instrumentality and is limited in

right of payment to certain collections with respect to the Receivables, as

more specifically set forth herein and in the Master Sale and Servicing

Agreement.  A copy of each of the Master

Sale and Servicing Agreement, the Agreement and the Series Supplement may be

examined during normal business hours at the principal office of the Depositor,

and at such other places, if any, designated by the Depositor, by any Certificateholder

upon written request.

 

As provided in the Agreement and subject to certain

limitations therein set forth, the transfer of this Certificate is registrable

in the Certificate Register upon surrender of this Certificate for registration

of transfer at the offices or agencies of the Certificate Registrar maintained

by the Owner Trustee in the Corporate Trust Office, accompanied by a written

instrument of transfer in form satisfactory to the Owner Trustee and the

Certificate Registrar duly executed by the holder hereof or such holder’s

attorney duly authorized in writing, and thereupon one or more new Certificates

in authorized denominations evidencing the same aggregate interest in the Trust

will be issued to the designated transferee. 

The initial Certificate Registrar appointed under the Agreement is the

Owner Trustee.

 

The Certificates are issuable as registered

Certificates in any Percentage Interest not to exceed 100%.  As provided in the Agreement and subject to

certain limitations therein set forth, Certificates are exchangeable for new

Certificates in authorized denominations evidencing the same aggregate

Percentage Interest, as requested by the holder surrendering the same.  No service charge will be made for any such

registration of transfer or exchange, but the Owner Trustee or the Certificate

Registrar may require payment of a sum sufficient to cover any tax or

governmental charge payable in connection therewith.

 

The Owner Trustee and the Certificate Registrar and

any agent of the Owner Trustee or the Certificate Registrar may treat the

person in whose name this Certificate is registered as the owner hereof for all

purposes, and none of the Owner Trustee, the Certificate Registrar nor any such

agent shall be affected by any notice to the contrary.

 

The Certificates may not be acquired by or for the

account of (a) an employee benefit plan (as defined in § 3(3) of ERISA)

that is subject to the provisions of Title I of ERISA, (b) a plan (as defined

in § 4975(e) (1) of the Code) that is subject to § 4975 of the Code

or (c) any entity whose underlying assets include plan assets by reason of such

plan’s investment in the entity (each, a “Benefit Plan”).  The Certificate Registrar shall not register

the transfer of a Certificate unless the transferee has delivered to the Owner

Trustee a representation letter in form and substance satisfactory to the

 

A-5

 

Owner Trustee to

the effect that the transferee is not, and is not acquiring the Certificate for

the account of, a Benefit Plan.

 

The recitals contained herein shall be taken as the

statements of the Depositor or the Master Servicer, as the case may be, and the

Owner Trustee assumes no responsibility for the correctness thereof.  The Owner Trustee makes no representations

as to the validity or sufficiency of this Certificate or of any Receivable or

related document.

 

Unless the certificate of authentication hereon shall

have been executed by an authorized officer of the Owner Trustee, by manual or

facsimile signature, this Certificate shall not entitle the holder hereof to

any benefit under the Agreement or the Master Sale and Servicing Agreement or

be valid for any purpose.

 

A-6

 

ASSIGNMENT

 

FOR VALUE RECEIVED the

undersigned hereby sells, assigns and transfers unto

PLEASE INSERT SOCIAL

SECURITY

OR OTHER IDENTIFYING

NUMBER

OF ASSIGNEE

 

(Please print or type

name and address, including postal zip code, of assignee)

 

the within Certificate,

and all rights thereunder, hereby irrevocably constituting and appointing

 

Attorney to transfer said

Certificate on the books of the Certificate Registrar, with full power of

substitution in the premises.

Dated:

	

   

  	

   

  	

  *

  
	

   

  	

  Signature Guaranteed:

  	

   

  
	

   

  	

   

  	

  *

  

 

*              NOTICE:  The

signature to this assignment must correspond with the name of the registered

owner as it appears on the face of the within Certificate in every particular,

without alteration, enlargement or any change whatever.  Such signature must be guaranteed by an

“eligible guarantor institution” meeting the requirements of the Certificate

Registrar, which requirements include membership or participation in STAMP or

such other “signature guarantee program” as may be determined by the

Certificate Registrar in addition to, or in substitution for, STAMP, all in

accordance with the Securities Exchange Act of 1934, as amended.

 

A-7

 

EXHIBIT B

 

[FORM OF

CERTIFICATE OF TRUST]

 

 

CERTIFICATE OF TRUST

OF

HOUSEHOLD AUTOMOTIVE TRUST 2003-1

 

THIS Certificate of Trust of Household Automotive

Trust 2003-1 (the “Trust”) is being duly executed and filed on behalf of the

Trust by the undersigned, as trustee, to form a statutory trust under the

Delaware Statutory Trust Act (12 Del. C. § 3801 et seq.)

(the “Act”).

 

1.             Name.  The name of the statutory trust formed by

this Certificate of Trust is Household Automotive Trust 2003-1.

 

2.             Delaware

Trustee.  The name and business

address of the trustee of the Trust in the State of Delaware are Wilmington

Trust Company, Rodney Square North, 1100 North Market Street, Wilmington,

Delaware 19890-1600.

 

3.             Effective

Date.  This Certificate of Trust

shall be effective upon filing.

 

IN

WITNESS WHEREOF, the undersigned have duly executed this

Certificate of Trust in accordance with Section 3811(a)(1) of the Act.

 

	

   

  	

  WILMINGTON TRUST

  COMPANY, not

  in its individual capacity but solely as

  Owner Trustee

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

   

  	

  Name:

  	

   

  
	

   

  	

   

  	

  Title:

  	

   

  

 

B-1

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