Document:

Exhibit

10.1(j)

 

AMENDMENT

TO EMPLOYMENT AGREEMENT

 

THIS

AMENDMENT TO EMPLOYMENT AGREEMENT (this “Agreement”), is

entered into as of January 1, 2002, between SAUER-DANFOSS INC., a

Delaware Corporation (the “Company”), and DR. KLAUS MURMANN (the “Executive”).

 

RECITALS

 

The parties hereto

are also parties to that certain Employment Agreement dated September 19,

1996 (the “Employment Agreement”), as amended by that certain Agreement and

Amendment to Employment Agreement dated February 24, 2000 (the “Amendment”).  The Executive’s period of employment

(“Employment Period”) under the Employment Agreement expires by its terms on

December 31, 2001.  The parties now

desire to further amend the Employment Agreement to provide that the Employment

Period shall expire, subject to the earlier termination of Executive’s

employment as provided in the Employment Agreement, on December 31, 2003.

 

NOW, THEREFORE, in

consideration of the premises, the mutual promises and covenants herein

contained, and other good and valuable consideration, the receipt and

sufficiency of which are hereby acknowledged, the Company and Executive,

intending to be legally bound, unconditionally agree as follows:

 

1.  Paragraph 2 of the Employment Agreement is

hereby deleted in its entirety and amended to read as follows:

 

“2.           Employment Period.  The term of Executive’s employment under

this Agreement shall commence as of January 1, 1997, and shall expire, subject

to the earlier termination of Executive’s employment as hereinafter provided,

on December 31, 2003 (the “Employment Period”).”

 

2.  Except as set forth above, the Employment

Agreement, as originally executed, together with the Amendment, including

Appendix A to the Amendment, shall remain in full force and effect.

 

3.  This Agreement may be executed in any number

of counterparts, each of which shall be deemed an original but all of which

together shall constitute one and the same agreement.

 

IN WITNESS WHEREOF,

the parties hereto have duly executed this Agreement as of the date first above

written.

 

 

	

   

  	

  SAUER

  DANFOSS INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/  David L.

  Pseifle

  
	

   

  	

   

  	

  President and CEO

  
	

   

  	

  (print name and

  title of officer)

  
	

   

  	

   

  
	

   

  	

  /s/  Klaus

  Murmann

  
	

   

  	

  Klaus MurmannExhibit

10.1

 

EXECUTION

COPY

 

 

 

CSGQ

TRUST

 

 

Issuer,

 

CITIBANK,

N.A.

 

Note Administrator

 

and

 

U.S.

BANK NATIONAL ASSOCIATION

 

Indenture Trustee

 

 

MASTER

INDENTURE

 

Dated as of June 25, 2002

 

 

 

TABLE OF

CONTENTS

 

	

  ARTICLE

  I

  	

  DEFINITIONS

  
	

   

  	

  Section 1.01.

  	

  Definitions

  
	

   

  	

  Section

  1.02.

  	

  Other

  Definitional Provisions

  
	

  ARTICLE

  II

  	

  THE

  NOTES

  
	

   

  	

  Section 2.01.

  	

  Form Generally

  
	

   

  	

  Section 2.02.

  	

  Denominations

  
	

   

  	

  Section 2.03.

  	

  Execution, Authentication and Delivery

  
	

   

  	

  Section 2.04.

  	

  Authenticating Agent

  
	

   

  	

  Section 2.05.

  	

  Registration of and Limitations on

  Transfer and Exchange  of Notes

  
	

   

  	

  Section 2.06.

  	

  Mutilated, Destroyed, Lost or Stolen

  Notes

  
	

   

  	

  Section 2.07.

  	

  Persons Deemed Owners

  
	

   

  	

  Section 2.08.

  	

  Appointment of Paying Agent

  
	

   

  	

  Section 2.09.

  	

  Access to List of Noteholders’ Names and

  Addresses

  
	

   

  	

  Section 2.10.

  	

  Cancellation

  
	

   

  	

  Section 2.11.

  	

  New Issuances

  
	

  ARTICLE III

  	

  COVENANTS OF ISSUER

  
	

   

  	

  Section 3.01.

  	

  Payment of Principal and Interest

  
	

   

  	

  Section 3.02.

  	

  Maintenance of Office or Agency

  
	

   

  	

  Section 3.03.

  	

  Money for Note Payments to Be Held in

  Trust

  
	

   

  	

  Section 3.04.

  	

  Existence

  
	

   

  	

  Section 3.05.

  	

  Protection of Trust

  
	

   

  	

  Section 3.06.

  	

  Opinions as to Collateral

  
	

   

  	

  Section 3.07.

  	

  Performance of Obligations; Servicing of

  Receivables

  
	

   

  	

  Section 3.08.

  	

  Negative Covenants

  
	

   

  	

  Section 3.09.

  	

  Statements as to Compliance

  
	

   

  	

  Section 3.10.

  	

  Issuer May Consolidate, Etc., Only on

  Certain Terms

  
	

   

  	

  Section 3.11.

  	

  Successor Substituted

  
	

   

  	

  Section 3.12.

  	

  No Other Business

  
	

   

  	

  Section 3.13.

  	

  No Borrowing

  
					

 

i

 

	

   

  	

  Section 3.14.

  	

  Servicer’s Obligations. The Issuer shall

  use all reasonable efforts to cause the Servicer to comply with all of its

  obligations under the Transaction Documents

  
	

   

  	

  Section 3.15.

  	

  Guarantees, Loans, Advances and Other

  Liabilities

  
	

   

  	

  Section 3.16.

  	

  Capital Expenditures

  
	

   

  	

  Section 3.17.

  	

  Removal of Administrator

  
	

   

  	

  Section 3.18.

  	

  Restricted Payments

  
	

   

  	

  Section 3.19.

  	

  Notice of Events of Default

  
	

   

  	

  Section 3.20.

  	

  Further Instruments and Acts

  
	

  ARTICLE

  IV

  	

  SATISFACTION

  AND DISCHARGE

  
	

   

  	

  Section 4.01.

  	

  Satisfaction and Discharge of this

  Indenture

  
	

   

  	

  Section 4.02.

  	

  Application of Trust Money

  
	

  ARTICLE

  V

  	

  REDEMPTION

  EVENTS, DEFAULTS AND REMEDIES

  
	

   

  	

  Section 5.01.

  	

  Redemption Events

  
	

   

  	

  Section 5.02.

  	

  Events of Default

  
	

   

  	

  Section 5.03.

  	

  Acceleration of Maturity; Rescission and

  Annulment

  
	

   

  	

  Section 5.04.

  	

  Collection of Indebtedness and Suits for

  Enforcement by Indenture Trustee

  
	

   

  	

  Section 5.05.

  	

  Remedies; Priorities

  
	

   

  	

  Section 5.06.

  	

  Optional Preservation of the Collateral

  
	

   

  	

  Section 5.07.

  	

  Limitation on Suits

  
	

   

  	

  Section 5.08.

  	

  Unconditional Rights of Noteholders to

  Receive Principal and Interest

  
	

   

  	

  Section 5.09.

  	

  Restoration of Rights and Remedies

  
	

   

  	

  Section 5.10.

  	

  Rights and Remedies Cumulative

  
	

   

  	

  Section 5.11.

  	

  Delay or Omission Not Waiver

  
	

   

  	

  Section 5.12.

  	

  Rights of Noteholders to Direct Indenture

  Trustee

  
	

   

  	

  Section 5.13.

  	

  Waiver of Past Defaults

  
	

   

  	

  Section 5.14.

  	

  Undertaking for Costs

  
	

   

  	

  Section 5.15.

  	

  Waiver of Stay or Extension Laws

  
	

   

  	

  Section 5.16.

  	

  Sale of Receivables

  
	

   

  	

  Section 5.17.

  	

  Action on Notes

  
				

 

ii

 

	

  ARTICLE

  VI

  	

  THE

  INDENTURE TRUSTEE; THE NOTE ADMINISTRATOR

  
	

   

  	

  Section 6.01.

  	

  Notice of Defaults

  
	

   

  	

  Section 6.02.

  	

  Certain Rights of Indenture Trustee and

  Note Administrator

  
	

   

  	

  Section 6.03.

  	

  [Reserved]

  
	

   

  	

  Section 6.04.

  	

  Not Responsible for Recitals or Issuance

  of Notes

  
	

   

  	

  Section 6.05.

  	

  May Hold Notes

  
	

   

  	

  Section 6.06.

  	

  Money Held in Trust

  
	

   

  	

  Section 6.07.

  	

  Compensation, Reimbursement and

  Indemnification

  
	

   

  	

  Section 6.08.

  	

  Replacement of Indenture Trustee and Note

  Administrator

  
	

   

  	

  Section 6.09.

  	

  Successor Indenture Trustee or Successor

  Note Administrator by Merger

  
	

   

  	

  Section 6.10.

  	

  Appointment of Co-Indenture Trustee or

  Separate Indenture Trustee

  
	

   

  	

  Section 6.11.

  	

  Eligibility; Disqualification

  
	

   

  	

  Section 6.12.

  	

  Tax Returns

  
	

   

  	

  Section 6.13.

  	

  Representations and Covenants of the

  Indenture Trustee and the Note Administrator

  
	

   

  	

  Section 6.14.

  	

  Custody of the Collateral

  
	

  ARTICLE VII

  	

  NOTEHOLDERS’ LIST AND REPORTS BY INDENTURE

  TRUSTEE AND ISSUER

  
	

   

  	

  Section 7.01.

  	

  Issuer to Furnish Indenture Trustee Names

  and Addresses of Noteholders

  
	

   

  	

  Section 7.02.

  	

  Preservation of Information; Communications

  to Noteholders

  
	

  ARTICLE VIII

  	

  ALLOCATION AND APPLICATION OF COLLECTIONS

  
	

   

  	

  Section 8.01.

  	

  Collection of Money

  
	

   

  	

  Section 8.02.

  	

  Rights of Noteholders

  
	

   

  	

  Section 8.03.

  	

  Establishment of Collection Account

  
	

   

  	

  Section 8.04.

  	

  Collections; Daily Release of

  Collections; Allocations

  
	

   

  	

  Section 8.05.

  	

  Shared Principal Collections

  
				

 

iii

 

	

   

  	

  Section 8.06.

  	

  [Reserved]

  
	

   

  	

  Section 8.07.

  	

  Release of Collateral; Eligible Loan

  Documents

  
	

   

  	

  Section 8.08.

  	

  Opinion of Counsel

  
	

  ARTICLE

  IX

  	

  DISTRIBUTIONS

  AND REPORTS TO NOTEHOLDERS

  
	

  ARTICLE

  X

  	

  SUPPLEMENTAL

  INDENTURES

  
	

   

  	

  Section 10.01.

  	

  Supplemental Indentures Without Consent

  of Noteholders

  
	

   

  	

  Section 10.02.

  	

  Supplemental Indentures with Consent of

  Noteholders

  
	

   

  	

  Section 10.03.

  	

  Execution of Supplemental Indentures

  
	

   

  	

  Section 10.04.

  	

  Effect of Supplemental Indenture

  
	

   

  	

  Section 10.05.

  	

  Reference in Notes to Supplemental

  Indentures

  
	

  ARTICLE

  XI

  	

  TERMINATION

  
	

   

  	

  Section 11.01.

  	

  Termination of Trust

  
	

   

  	

  Section 11.02.

  	

  Final Distribution

  
	

   

  	

  Section 11.03.

  	

  Termination Distributions

  
	

  ARTICLE XII

  	

  MISCELLANEOUS

  
	

   

  	

  Section 12.01.

  	

  Compliance Certificates and Opinions etc

  
	

   

  	

  Section 12.02.

  	

  Form of Documents Delivered to Indenture

  Trustee

  
	

   

  	

  Section 12.03.

  	

  Acts of Noteholders

  
	

   

  	

  Section 12.04.

  	

  Notices, Etc. to Indenture Trustee and

  Issuer

  
	

   

  	

  Section 12.05.

  	

  Notices to Noteholders; Waiver

  
	

   

  	

  Section 12.06.

  	

  Alternate Payment and Notice Provisions

  
	

   

  	

  Section 12.07.

  	

  Effect of Headings and Table of Contents

  
	

   

  	

  Section 12.08.

  	

  Successors and Assigns

  
	

   

  	

  Section 12.09.

  	

  Severability

  
	

   

  	

  Section 12.10.

  	

  Benefits of Indenture

  
	

   

  	

  Section 12.11.

  	

  Legal Holidays

  
	

   

  	

  Section 12.12.

  	

  GOVERNING LAW

  
	

   

  	

  Section 12.13.

  	

  Counterparts

  
	

   

  	

  Section 12.14.

  	

  Trust Obligation

  
	

   

  	

  Section 12.15.

  	

  No Petition

  
				

 

iv

 

	

   

  	

  Section 12.16.

  	

  Limitation of Liability

  
	

   

  	

  Section 12.17. 

  	

  Certain Commercial Law Representations

  and Warranties

  

 

v

 

This MASTER INDENTURE,

dated as of June 25, 2002 (herein, as amended, modified or supplemented from

time to time as permitted hereby, called this “Indenture”), between CSGQ Trust, a business trust created

under the laws of the State of Delaware (herein, together with its permitted

successors and assigns, called the “Issuer”

or the “Trust”), U.S. Bank

National Association, a national banking association, as indenture trustee

(herein, together with its successors in the trusts hereunder, called the “Indenture Trustee”) and Citibank, N.A.,

a national association, as note administrator (herein, together with its

successors in the trusts hereunder, called the “Note Administrator”). 

This Indenture may be supplemented at any time and from time to time by

an indenture supplement in accordance with Article X hereof (an “Indenture Supplement,” and any Indenture

Supplement together with this Indenture and amendments hereof collectively

referred to as the “Agreement”).  If a conflict exists between the terms and

provisions of this Indenture and any Indenture Supplement, the terms and

provisions of the Indenture Supplement shall be controlling with respect to the

related Series.

 

PRELIMINARY STATEMENT

 

The Issuer has duly authorized the execution and

delivery of this Indenture to provide for issuances of its asset backed notes

in one or more series (the “Notes”)

and the issuance of interests representing an amount of Receivables securing

any such Series of Notes in excess of the invested amount of such Notes, all as

provided in this Indenture and any related Indenture Supplement.  All covenants and agreements made by the

Issuer herein are for the benefit and security of the Noteholders and any

Series Enhancer.  The Issuer is entering

into this Indenture, and the Indenture Trustee is accepting the trusts created

hereby, for good and valuable consideration, the receipt and sufficiency of

which are hereby acknowledged.

 

Simultaneously with the delivery of this Indenture the

Issuer is entering into the Transfer and Servicing Agreement with CompuCredit

Corporation, a Georgia corporation (the “Servicer”),

CSG Funding, LLC, a Delaware limited liability company (the “O/C Holder”), and PACCT, LLC, a

Delaware limited liability company (the “Transferor”),

pursuant to which (a) the Transferor will convey to the Issuer all of its

right, title and interest in, to and under the Receivables and (b) the

Servicer will agree to service the Receivables and make collections thereon on

behalf of the Noteholders.

 

Under the Transfer and Servicing Agreement,

Receivables arising in the Accounts from time to time will be conveyed

thereunder to the Issuer.

 

GRANTING CLAUSES

 

The Issuer hereby Grants to the Indenture Trustee, for

the benefit of the Holders of the Notes and the holders of any other interests

in the Receivables as specified in the related Indenture Supplement, all of the

Issuer’s right, title and interest, whether now owned or hereafter acquired,

in, to and under all of the Issuer’s property, including, without limitation

(a) the Receivables existing at the close of business on the Cut-Off Date

and thereafter created or acquired by the Trust from time to time and arising

in connection with the Accounts, (b) all Interchange and Recoveries

allocable to the Issuer as provided in the Transfer and Servicing Agreement and

all monies due or to become due and all amounts received or receivable with

respect thereto, (c) all monies and other property credited to the

Collection Account and the Series Accounts (including any subaccounts of such

account), and all interest, dividends, earnings, income and other distributions

from time to time received, receivable or otherwise distributed or

distributable thereto or in respect thereof (including any accrued discount

realized on liquidation of any investment purchased at a discount),

(d) all rights, remedies, powers, 

 

 

privileges and claims of the Issuer under or with respect to any Series

Enhancement, the Trust Agreement, the Transfer and Servicing Agreement or the

Receivables Purchase Agreement (whether arising pursuant to the terms of such

Series Enhancement, the Trust Agreement, the Transfer and Servicing Agreement

or the Receivables Purchase Agreement or otherwise available to the Issuer at

law or in equity), including, without limitation, the rights of the Issuer to

enforce such Series Enhancement, the Trust Agreement, the Transfer and Servicing

Agreement or the Receivables Purchase Agreement, and to give or withhold any

and all consents, requests, notices, directions, approvals, extensions or

waivers under or with respect to such Series Enhancement, the Trust Agreement,

the Transfer and Servicing Agreement or the Receivables Purchase Agreement to

the same extent as the Issuer could but for the assignment and security

interest granted to the Indenture Trustee for the benefit of the Noteholders

and the holders of any other interests in the Receivables as specified in the

related Indenture Supplement, (e) all money, accounts, general

intangibles, chattel paper, instruments, documents, goods, investment property,

deposit accounts, certificates of deposit, letters of credit, and advices of credit

consisting of, arising from, or related to the foregoing, (f) all other

property of the Issuer, and (g) all present and future claims, demands,

causes and choses in action in respect of any or all of the foregoing and all

payments on or under and all proceeds of every kind and nature whatsoever in

respect of any or all of the foregoing, including all proceeds, products,

rents, receipts or profits of the conversion, voluntary or involuntary, into

cash or other property, all cash and non-cash proceeds, and other property

consisting of, arising from or relating to all or any part of any of the

foregoing; in each case, excluding the Transferor Amount and all amounts

distributable to the Holders of any Certificates pursuant to the terms of any

Transaction Document (collectively, the “Collateral”).

 

LIMITED RECOURSE

 

The obligation of the Issuer to make payments of

principal of, interest on and other amounts with respect to, the Notes or any

other interests in the Receivables specified in the related Indenture Supplement

is limited by recourse only to the Collateral.

 

ARTICLE I

 

DEFINITIONS

 

Section 1.01.          Definitions.

 

Whenever used in this Indenture, the following words

and phrases shall have the following meanings, and the definitions of such

terms 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.

 

“Accounts Owner” shall have the meaning

specified in the Transfer and Servicing Agreement.

 

“Act” shall have the meaning specified in

subsection 12.03(a).

 

“Administration Agreement” shall mean the

Administration Agreement, dated as of June 25, 2002, between the Issuer and the

Administrator, as the same may be amended, supplemented or otherwise modified

from time to time.

 

“Administrator” shall mean CSG, LLC, or its

permitted successors and assigns, or any successor Administrator under the

Administration Agreement.

 

2

 

 

“Adverse Effect” shall have the meaning

specified in the Transfer and Servicing Agreement.

 

“Agreement” shall mean this Master Indenture,

as the same may be amended, supplemented or otherwise modified from time to

time, including, with respect to any Series or Class, the related Indenture

Supplement.

 

“Applicants” shall have the meaning specified

in Section 2.09.

 

“Authorized Officer” shall mean:

 

(a)           with respect to the Issuer, any

officer of the Owner Trustee who is authorized to act for the Owner Trustee in

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

Officers, containing the specimen signature of each such Person, delivered by

the Owner Trustee to the Indenture Trustee and the Note Administrator on the

relevant Closing Date (as such list may be modified or supplemented from time

to time thereafter) and any Vice President or more senior officer of the

Administrator who is authorized to act for the Administrator in matters

relating to the Issuer and to be acted upon by the Administrator pursuant to

the Administration Agreement and who is identified on the list of Authorized

Officers (containing the specimen signatures of such officers) delivered by the

Administrator to the Indenture Trustee and the Note Administrator on the

relevant Closing Date (as such list may be modified or supplemented from time

to time thereafter);

 

(b)           with respect to the Transferor, any

officer of the Transferor who is authorized to act for the Transferor in

matters relating to the Transferor and who is identified on the list of

Authorized Officers, containing the specimen signature of each such Person,

delivered by the Transferor to the Indenture Trustee and the Note Administrator

on the relevant Closing Date (as such list may be modified or supplemented from

time to time thereafter);

 

(c)           with respect to the Servicer, any

officer of the Servicer who is authorized to act for the Servicer in matters

relating to the Servicer and who is identified on the list of Authorized

Officers, containing the specimen signature of each such Person, delivered by

the Servicer to the Indenture Trustee and the Note Administrator on the

relevant Closing Date (as such list may be modified or supplemented from time

to time thereafter);

 

(d)           with respect to the O/C Holder, any

officer of the O/C Holder who is authorized to act for the O/C Holder in

matters related to the O/C Holder and who is identified on the list of

Authorized Officers, containing the specimen signature of each such Person,

delivered by the O/C Holder to the Indenture Trustee and the Note Administrator

on the relevant Closing Date (as such list may be modified or supplemented from

time to time thereafter); and

 

(e)           with respect to the Note

Administrator, any officer of the Note Administrator who is authorized to act

for the Note Administrator in matters related to the Note Administrator and who

is identified on the list of Authorized Officers, containing the specimen

signature of each such Person, delivered by the Note Administrator to the

Indenture Trustee on the relevant Closing Date (as such list may be modified or

supplemented from time to time thereafter).

 

3

 

“Business Day” shall have the meaning specified

in the Transfer and Servicing Agreement.

 

“Certificate Trust Agreements” shall mean the

Pass-Through Trust Agreement, Series 2002-1, dated as of June 25, 2002, among

CSGQ Trust, Presidio Trust, the Certificate Trustee and the Certificate

Administrator and each supplement thereto.

 

“Certificate Administrator” shall mean the

certificate administrator under the Certificate Trust Agreements.

 

“Certificate Trustee” shall mean the trustee

under the Certificate Trust Agreements.

 

“Certificates” shall have the meaning specified

in the Trust Agreement.

 

“Class” shall mean, with respect to any Series,

any one of the classes of Notes or other interests in the Receivables of that

Series, as specified in the related Indenture Supplement.

 

“Closing Date” shall mean, with respect to any

Series, the closing date specified in the related Indenture Supplement.

 

“Code” shall mean the Internal Revenue Code of

1986, as amended.

 

“Collateral” shall have the meaning specified

in the Granting Clause of this Indenture.

 

“Collection Account” shall have the meaning

specified in Section 8.03.

 

“Collections” shall have the meaning specified

in the Transfer and Servicing Agreement.

 

“CompuCredit” shall mean CompuCredit

Corporation, a Georgia corporation.

 

“Controlling Noteholders” shall mean the

holders of at least 50% of the Outstanding Amount of the Class A Notes (as so

designated in the related Indenture Supplement) or, if the Class A Notes have

been paid in full, 50% of the Outstanding Amount of the Class B Notes (as so

designated in the related Indenture Supplement).  The Certificate Trustee as Holder, if applicable, shall vote in

accordance with the provisions of the relevant Pass-Through Trust Agreement.

 

“Corporate Trust Office” means (i) the

principal office of the Indenture Trustee at which at any particular time its

corporate trust business shall be administered, which office on the date of the

execution of this Indenture is located at 180 East Fifth Street, St. Paul,

Minnesota 55101, Attention: Structured Finance/Project PACCT, or at such other

address as the Indenture Trustee may designate from time to time by notice to

the Noteholders, the Note Administrator, the Certificate Trustee, the

Certificate Administrator and the Transferor, or the principal corporate trust

office of any successor Indenture Trustee (the address of which the successor

Indenture Trustee will notify the Noteholders, the Note Administrator, the O/C

Holder, the Certificate Trustee, the Certificate Administrator and the

Transferor); and (ii) the principal office of the Note Administrator at which

at any particular time its corporate trust business shall be administered,

which office on the date of the execution of this Indenture is located at 111

Wall Street, Zone 3, 

 

4

 

14th Floor, New York, New York 10005, Attention: Structured Finance

Group/PACCT, Series 2001-1, or at such other address as the Note Administrator

may designate from time to time by notice to the Noteholders, the Indenture

Trustee, the Certificate Trustee, the Certificate Administrator and the

Transferor, or the principal corporate trust office of any successor Note

Administrator (the address of which the successor Note Administrator will

notify the Noteholders, the Indenture Trustee, the O/C Holder, the Certificate

Trustee, the Certificate Administrator and the Transferor); provided

that for the purposes of Section 3.02, the address of any such office shall be

in the Borough of Manhattan of the City of New York.

 

“CSG, LLC” shall mean CSG, LLC, a Delaware

limited liability company, or any of its successors or assigns.

 

“Cut-Off Date” shall mean May 31, 2002.

 

“Date of Processing” shall have the meaning

specified in the Transfer and Servicing Agreement.

 

“Default” shall mean any occurrence that is, or

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

 

“Defaulted Receivables” shall have the meaning

specified in the Transfer and Servicing Agreement.

 

“Definitive Notes” shall mean Notes in

definitive, fully registered form.

 

“Deposit Date” shall mean each day on which the

Servicer deposits Collections in the Collection Account.

 

“Determination Date” shall mean, unless

otherwise specified in the Indenture Supplement for a particular Series, the

fourth Business Day preceding the Distribution Date.

 

“Distribution Date” shall mean, with respect to

any Series, the date specified in the applicable Indenture Supplement.

 

“Dollars,” “$” or “U.S. $” shall

mean United States dollars.

 

“DTC” shall mean The Depository Trust Company

and any successors thereto.

 

“Eligible Institution” shall mean a depository

institution (which may include the Owner Trustee, the Certificate Trustee, the

Certificate Administrator, the Note Administrator or the Indenture Trustee)

organized under the laws of the United States or any one of the states thereof,

or the District of Columbia (or any domestic branch of a foreign bank), and

which depository institution at all times (a) has either (i) a

long-term unsecured debt rating of “Aa3” or better by Moody’s or (ii) a

certificate of deposit rating of “P-1” by Moody’s, (b) has either

(i) a long-term unsecured debt rating of “AA-” by Standard &

Poor’s or (ii) a certificate of deposit rating of “A-1+” by

Standard & Poor’s and (c) is a member of the FDIC.  Notwithstanding the previous sentence, any

institution the appointment of which satisfies the Rating Agency Condition shall

be considered an Eligible Institution. 

If so qualified, the Servicer may be considered an Eligible Institution

for the purposes of this definition.

 

5

 

“Eligible Investments” shall mean, as of any

date of determination, the following instruments, investment property, or other

property, other than securities issued by or obligations of CompuCredit and any

Accounts Owner, which evidence:

 

(a)           direct obligations of, or obligations

fully guaranteed as to timely payment of principal and interest by, the United

States of America;

 

(b)           demand deposits, time deposits or

certificates of deposit (having original maturities of no more than 365 days)

of depository institutions or trust companies incorporated under the laws of

the United States of America or any state thereof, or the District of Columbia

(or domestic branches of foreign banks) and subject to supervision and

examination by federal or state banking or depository institution authorities; provided

that at the time of the Trust’s investment or contractual commitment to invest

therein, the short-term debt rating of such depository institution or trust

company shall be in the highest rating category of Standard & Poor’s and of

Moody’s unless otherwise specified in the related Indenture Supplement;

 

(c)           commercial paper or other short-term

obligations (having original or remaining maturities of no more than thirty

(30) days) having, at the time of the Trust’s investment or contractual

commitment to invest therein, a rating in the highest rating category of

Standard & Poor’s and of Moody’s unless otherwise specified in the related

Indenture Supplement;

 

(d)           demand deposits, time deposits and

certificates of deposit which (i) are scheduled to mature on a date occurring

no later than the immediately succeeding Distribution Date, (ii) are fully

insured by the FDIC and (iii) have, at the time of the Trust’s investment

therein, a rating in the highest rating category of Standard & Poor’s and

of Moody’s unless otherwise specified in the related Indenture Supplement;

 

(e)           bankers’ acceptances (having original

maturities of no more than 365 days) issued by any depository institution or

trust company referred to in clause (b) above;

 

(f)            money market funds having, at the time

of the Trust’s investment therein, a rating in the highest rating category of

Standard & Poor’s and of Moody’s unless otherwise specified in the related

Indenture Supplement (including funds for which the Indenture Trustee or the

Certificate Trustee or any of their respective Affiliates is investment manager

or advisor);

 

(g)           time deposits (other than those

referred to in clause (b) or (d) above), with a Person whose commercial paper

has a credit rating satisfactory to Standard & Poor’s and Moody’s unless

otherwise specified in the related Indenture Supplement and which are scheduled

to mature on a date occurring no later than the immediately succeeding

Distribution Date; or

 

(h)           any other investment of a type or

rating that satisfies the Rating Agency Condition.

 

“Enhancement Agreement” shall mean any

agreement, instrument or document governing the terms of any Series Enhancement

or pursuant to which any Series Enhancement is issued or outstanding.

 

6

 

“Euroclear Operator” shall mean Euroclear Bank

S.A./N.V., as operator of the Euroclear System and any successor thereto.

 

“Event of Default” shall have the meaning

specified in Section 5.02.

 

“Exchange Act” shall mean the Securities

Exchange Act of 1934, as amended.

 

“FDIC” shall mean the Federal Deposit Insurance

Corporation or any successor thereto.

 

“Finance Charge Receivables” shall have the

meaning specified in the Transfer and Servicing Agreement.

 

“Final Maturity Date” shall mean, with respect

to any Series, the final maturity date for such Series specified in the related

Indenture Supplement.

 

“GAAP” means generally accepted accounting

principles in the United States of America in effect from time to time.

 

“Grant” means to mortgage, pledge, bargain, warrant,

alienate, remise, release, convey, assign, transfer, create, and 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 Collateral or of any other agreement or instrument shall

include all rights, powers and options (but none of the obligations) of the

Granting party thereunder, including the immediate and continuing right to

claim for, collect, receive and give receipt for principal and interest

payments in respect of the Collateral and all other 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.

 

“Indenture” shall mean this Master Indenture,

dated as of June 25, 2002, among the Issuer, the Note Administrator and the

Indenture Trustee, as the same may be amended, supplemented or otherwise

modified from time to time.

 

“Indenture Supplement” shall mean, with respect

to any Series, a supplement to the Indenture, executed and delivered in

connection with the original issuance of the Notes of such Series pursuant to

Section 10.01, and an amendment to this Indenture executed pursuant to Sections

10.01 or 10.02, and, in either case, including all amendments thereof and

supplements thereto.

 

“Indenture Trustee” shall mean U.S. Bank

National Association, a national banking association, in its capacity as

indenture trustee under the Agreement, its successors in interest and any

successor indenture trustee under the Agreement.

 

“Independent” shall mean, 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 Transferor 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 Transferor or any Affiliate of any of the foregoing Persons and

(c) is not connected with the Issuer, any such other obligor, the Transferor or

any Affiliate of any of the foregoing Persons as 

 

7

 

an officer, employee, promoter, underwriter, trustee, partner, director

or Person performing similar functions.

 

“Indirect Participant” shall mean other Persons

such as securities brokers and dealers, banks and trust companies that clear or

maintain a custodial relationship with a participant of DTC, either directly or

indirectly.

 

“Insolvency Event” shall have the meaning

specified in subsection 5.01(a).

 

“Invested Amount” shall mean, with respect to

any Series and for any date, an amount equal to the “Invested Amount” specified

in the related Indenture Supplement.

 

“Investment Company Act” shall mean the

Investment Company Act of 1940, as amended.

 

“Issuer” shall mean the Trust.

 

“Issuer Order” and “Issuer Request”

shall mean a written order or request signed in the name of the Issuer by any

one of its Authorized Officers and delivered to the Indenture Trustee and/or

the Note Administrator, as the case may be.

 

“Lien” shall have the meaning specified in the

Transfer and Servicing Agreement.

 

“Majority Noteholders” shall mean, with respect

to any Series, the Holders of more than 50% of the Outstanding Amount of the

Notes of such Series.  The Certificate

Trustee as Holder, if applicable, shall vote in accordance with the provisions

of the relevant Pass-Through Trust Agreement.

 

“Monthly Period” shall mean, with respect to

each Distribution Date, unless otherwise provided in an Indenture Supplement,

the period from and including the first day of the preceding calendar month to

and including the last day of such calendar month; provided, however,

that the initial Monthly Period with respect to any Series will commence on the

Cut-Off Date with respect to such Series, unless otherwise specified in the

related Indenture Supplement.

 

“Moody’s” shall mean Moody’s Investors Service,

Inc. and any successor thereto.

 

“New Issuance” shall have the meaning specified

in subsection 2.11(a).

 

“Note Administrator” shall mean Citibank, N.A.,

a national association in its capacity as note administrator under this

Indenture, its successors in interest and any successor note administrator

under this Indenture.

 

“Note Interest Rate” shall mean, as of any

particular date of determination and with respect to any Series or Class, the

interest rate as of such date specified therefor in the related Indenture

Supplement.

 

“Note Register” shall have the meaning

specified in Section 2.05.

 

8

 

“Noteholder” or “Holder” shall mean the

Person in whose name a Note is registered on the Note Register or such other

Person deemed to be a “Noteholder” or “Holder” in any related Indenture

Supplement.

 

“Notes” shall mean Notes of all Series issued

by the Trust pursuant to the Indenture and the applicable Indenture

Supplements.

 

“Notice of Default” shall have the meaning

specified in Section 5.02(c).

 

“O/C Certificate” shall mean the certificate

executed by the Trust and authenticated by or on behalf of the Indenture

Trustee, which certificate evidences an undivided interest in the O/C Invested

Amount, as may be specified in the related Indenture Supplement.

 

“O/C Holder” shall mean CSG Funding, LLC, a

Delaware limited liability company, and any permitted successors and assigns.

 

“Officer’s Certificate” shall mean, unless

otherwise specified in this Indenture, a certificate delivered to the Indenture

Trustee and the Note Administrator signed by any Authorized Officer of the

Issuer, Transferor, Servicer or O/C Holder, as applicable, under the circumstances

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

Section 12.01, except to the extent executed by the Owner Trustee on behalf of

the Issuer.

 

“Opinion of Counsel” shall mean a written

opinion of counsel, who may be counsel for, or an employee of, the Person

providing the opinion; provided that a Tax Opinion shall be an opinion

of nationally recognized tax counsel.

 

“Outstanding” shall mean, as of the date of

determination, all Notes theretofore authenticated and delivered under this

Indenture except:

 

(i)            Notes theretofore canceled by the

Transfer Agent and Registrar or delivered to the Transfer Agent and 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 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 this Indenture or provision therefor,

satisfactory to the Note Administrator, has been made); and

 

(iii)          Notes in exchange for or in lieu of

other Notes which have been authenticated and delivered pursuant to this

Indenture unless proof satisfactory to the Note Administrator is presented that

any such Notes are held by a “protected purchaser” (as defined in the New York

UCC);

 

; provided that in determining whether the Holders of the

requisite Outstanding Amount of the Notes have given any request, demand,

authorization, direction, notice, consent or waiver hereunder or under this

Indenture or any Indenture Supplement, Notes owned by the Issuer, the

Transferor or any Affiliate or agent thereof 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 actually knows to be so owned

shall be so disregarded.  Notes so owned

that have been pledged in good faith may be regarded as 

 

9

 

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, the Transferor or any Affiliate or agent

thereof.  In making any such

determination, the Indenture Trustee may rely on the representations of the

pledgee and shall not be required to undertake any independent investigation.

 

“Outstanding Amount” means the aggregate

principal amount of all Notes Outstanding at the date of determination and,

with respect to the Notes of a particular Series, the aggregate principal

amount of all Notes of such Series which are Outstanding at the date of

determination.

 

“Owner Trustee” shall mean Wilmington Trust

Company, not in its individual capacity, but solely as owner trustee under the

Trust Agreement, its successors in interest and any successor owner trustee

under the Trust Agreement.

 

“Paired Series” shall mean (i) each Series

which has been paired with another Series (which Series may be prefunded or

partially prefunded), such that the reduction of the Invested Amount of such

Series results in the increase of the Invested Amount of such other Series, as

described in the related Indenture Supplements, and (ii) such other

Series.

 

“Pass-Through Trust Agreement” shall mean the

Pass-Through Trust Agreement dated as of June 25, 2002 among CSGQ Trust,

Presidio Trust, U.S. Bank National Association, as certificate trustee, and

Citibank, N.A., as certificate administrator, as amended and supplemented from

time to time.

 

“Paying Agent” shall mean any paying agent

appointed pursuant to Section 2.08 and shall initially be the Note

Administrator; provided that if the Indenture Supplement for a Series so

provides, a separate or additional Paying Agent may be appointed with respect

to such Series.

 

“Permitted Assignee” shall mean any Person who,

if it were to purchase Receivables (or interests therein) in connection with a

sale thereof pursuant to Sections 5.05(a) and 5.16, would not cause the Trust

to be taxable as a publicly traded partnership for federal income tax purposes.

 

“Person” shall have the meaning specified in

the Transfer and Servicing Agreement.

 

“Principal Receivables” shall have the meaning

specified in the Transfer and Servicing Agreement.

 

“Principal Sharing Series” shall mean a Series

that, pursuant to the Indenture Supplement therefor, is entitled to receive

Shared Principal Collections.

 

“Principal Shortfall” shall have the meaning

specified in Section 8.05.

 

“Principal Terms” shall mean, with respect to

any Series, (a) the name or designation; (b) the initial principal

amount (or method for calculating such amount) and the Invested Amount;

(c) the Note Interest Rate for each Class of Notes of such Series (or

method for the determination thereof); (d) the payment date or dates and

the date or dates from which interest shall accrue; (e) the method for

allocating Collections to Noteholders; (f) the designation of any 

 

10

 

Series Accounts and the terms governing the operation of any such

Series Accounts; (g) the Servicing Fee; (h) the issuer and terms of

any form of Series Enhancement with respect thereto; (i) the terms on

which the Notes of such Series may be exchanged for Notes of another Series,

repurchased by the Transferor or remarketed to other investors; (j) the

Final Maturity Date; (k) the number of Classes of Notes of such Series

and, if more than one Class, the rights and priorities of each such Class;

(l) the extent to which the Notes of such Series will be issuable in

temporary or permanent global form (and, in such case, the depositary for such

global note or notes, the terms and conditions, if any, upon which such global

note may be exchanged, in whole or in part, for Definitive Notes, and the

manner in which any interest payable on a temporary or global note will be

paid); (m) whether the Notes of such Series may be issued in bearer form

and any limitations imposed thereon; (n) the priority of such Series with

respect to any other Series; (o) whether such Series will be part of a

Group; (p) whether such Series will be a Principal Sharing Series;

(q) the Distribution Date; (r) whether such Series will or may be a

Paired Series and the Series with which it will be paired, if applicable; and

(s) any other terms of such Series.

 

“Proceeding” shall mean any suit in equity,

action at law or other judicial or administrative proceeding.

 

“Qualified Account” shall mean either

(a) a segregated account with an Eligible Institution or (b) a

segregated trust account with the corporate trust department of a depository

institution organized under the laws of the United States or any one of the

states thereof or the District of Columbia (or any domestic branch of a foreign

bank), and acting as a trustee for funds deposited in such account, so long as

any of the unsecured, unguaranteed senior debt securities of such depository

institution shall have a credit rating from each Rating Agency in one of its

generic credit rating categories that signifies investment grade.

 

“Rating Agency” shall mean, with respect to any

outstanding Series or Class, each rating agency, as specified in the applicable

Indenture Supplement, selected by the Issuer to rate the Notes of such Series

or Class.

 

“Rating Agency Condition” shall mean, with

respect to any action, that each Rating Agency shall have notified the Issuer,

the Note Administrator and the Indenture Trustee in writing that such action

will not result in a reduction or withdrawal of the then existing rating of any

outstanding Series or Class with respect to which it is a Rating Agency or,

with respect to any outstanding Series or Class not rated by any Rating Agency,

the written consent of the Noteholders of such Series or Class or such other

Persons as specified in the Indenture Supplement for such Series.

 

“Receivables” shall have the meaning specified

in the Transfer and Servicing Agreement.

 

“Record Date” shall mean, with respect to any

Distribution Date, the Business Day immediately preceding the related

Distribution Date unless otherwise specified for a Series in the related

Indenture Supplement.

 

“Redemption Date” shall mean, with respect to

any Series, the date or dates, if any, specified in the related Indenture

Supplement.

 

“Redemption Event” shall mean, with respect to

any Series, a Trust Redemption Event or a Series Redemption Event.

 

11

 

“Responsible Officer” shall mean (a) with

respect to the Indenture Trustee, any officer within the Corporate Trust Office

having direct responsibility for the administration of this Agreement,

including any Vice President, Managing Director, Assistant Vice President, Secretary,

Assistant Secretary or any other officer of the Indenture Trustee customarily

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

officers and also, with respect to a particular matter, any other officer to

whom such matter is referred because of such officer’s knowledge and

familiarity with the particular subject, (b) with respect to the Note

Administrator, any officer within the Corporate Trust Office having direct

responsibility for the administration of this Agreement, including any Vice

President, Managing Director, Assistant Vice President, Secretary, Assistant

Secretary or any other officer of the Note Administrator customarily performing

functions similar to those performed by any of the above designated officers and

also, with respect to a particular matter, any other officer to whom such

matter is referred because of such officer’s knowledge and familiarity with the

particular subject and (c) with respect to the Paying Agent, any officer within

the corporate trust office having direct responsibility for the administration

of this Agreement, including any Vice President, Managing Director, Assistant

Vice President, Secretary, Assistant Secretary or any other officer of the

Paying Agent customarily performing functions similar to those performed by any

of the above designated officers and also, with respect to a particular matter,

any other officer to whom such matter is referred because of such officer’s

knowledge and familiarity with the particular subject.

 

“Securities Act” shall mean the Securities Act

of 1933, as amended.

 

“Series” shall mean any series of Notes or

other interests issued pursuant to this Indenture and the related Indenture

Supplement.

 

“Series Account” shall mean any deposit, trust,

securities escrow or similar account maintained for the benefit of the

Noteholders of any Series or Class, as specified in any Indenture Supplement.

 

“Series Enhancement” shall mean the rights and

benefits provided to the Trust or the Noteholders of any Series or Class

pursuant to any letter of credit, surety bond, cash collateral account,

collateral invested amount, spread account, reserve account, guaranteed rate

agreement, maturity liquidity facility, tax protection agreement, interest rate

swap agreement, interest rate cap agreement or other similar arrangement.  The subordination of any Series or Class to

another Series or Class shall be deemed to be a Series Enhancement.

 

“Series Enhancer” shall mean the Person or

Persons providing any Series Enhancement, other than (except to the extent

otherwise provided with respect to any Series in the Indenture Supplement for

such Series) the Noteholders of any Series or Class which is subordinated to

another Series or Class.

 

“Series Issuance Date” shall mean, with respect

to any Series, the date on which the Notes of such Series are to be originally

issued in accordance with Section 2.11 and the related Indenture Supplement.

 

“Series Redemption Event” shall have, with

respect to any Series, the meaning specified pursuant to the related Indenture

Supplement.

 

“Servicer” shall have the meaning specified in

the Transfer and Servicing Agreement.

 

12

 

“Servicer Default” shall have the meaning

specified in the Transfer and Servicing Agreement.

 

“Shared Principal Collections” shall have the

meaning specified in Section 8.05.

 

“Standard & Poor’s” shall mean Standard

& Poor’s Ratings Services, a division The McGraw-Hill Companies Inc., and

any successors thereto.

 

“Tax Opinion” shall mean, with respect to any

action, an Opinion of Counsel to the effect that, for federal income tax

purposes, (a) such action will not adversely affect the tax

characterization as debt of the Notes of any outstanding Series or Class that

were characterized as debt at the time of their issuance, (b) such action

will not cause the Trust to be deemed to be an association (or publicly traded

partnership) taxable as a corporation and (c) such action will not cause

or constitute an event in which gain or loss would be recognized by any

Noteholder.

 

“Transaction Documents” shall mean, with

respect to any Series of Notes, the Certificate Trust Agreements, the Trust

Agreement, the Receivables Purchase Agreement, the Transfer and Servicing

Agreement, this Indenture, the related Indenture Supplement, the Administration

Agreement and such other documents and certificates delivered in connection

therewith.

 

“Transfer Agent and Registrar” shall have the

meaning specified in Section 2.05.

 

“Transfer and Servicing Agreement” shall mean

the Transfer and Servicing Agreement, dated as of June 25, 2002, among the

Transferor, the O/C Holder, the Servicer and the Issuer, as the same may be

amended, supplemented or otherwise modified from time to time.

 

“Transfer Date” shall mean the Business Day

immediately preceding each Distribution Date.

 

“Transferor” shall have the meaning specified

in the Transfer and Servicing Agreement.

 

“Transferor Amount” shall mean, on any date of

determination, an amount equal to (a) the aggregate amount of Receivables

transferred by the Transferor to the Trust since the Closing Date, minus

(b) the aggregate amount of Collections that have been paid to the Transferor

since the Closing Date to purchase new Receivables, minus (c) the net amount of

any advances by CSG, LLC to the Transferor under any variable funding notes of

the Issuer, minus

(d) Collections of Principal Receivables that have not been allocated to the

Invested Amount of any series on all prior Distribution Dates that have been

distributed to the Transferor, minus (e) the amount of Defaulted

Receivables that have not been allocated to the Invested Amount of any series

on all prior Distribution Dates.

 

“Trust” shall mean the CSGQ Trust.

 

“Trust Agreement” shall mean the Trust

Agreement relating to the Trust, dated as of June 24, 2002, among PACCT, LLC,

the O/C Holder and the Owner Trustee, as the same may be amended, supplemented

or otherwise modified from time to time.

 

“Trust Redemption Event” shall have the meaning

specified in Section 5.01.

 

13

 

“UCC” shall have the meaning specified in the

Transfer and Servicing Agreement.

 

Section 1.02.          Other

Definitional Provisions.

 

(a)           With

respect to any Series, all terms used herein and not otherwise defined herein

shall have meanings ascribed to them in the Trust Agreement, the Transfer and

Servicing Agreement or the related Indenture Supplement, as applicable.

 

(b)           All

terms defined in this Indenture 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 Indenture and in any certificate or other document made or

delivered pursuant hereto or thereto, accounting terms not defined in this

Indenture or in any such certificate or other document, and accounting terms

partly defined in this Indenture or in any such certificate or other document

to the extent not defined, shall have the respective meanings given to them

under GAAP.  To the extent that the definitions

of accounting terms in this Indenture or in any such certificate or other

document are inconsistent with the meanings of such terms under GAAP, the

definitions contained in this Indenture or in any such certificate or other

document shall control.

 

(d)           Any

reference to a Rating Agency shall apply to a specific rating agency only if

such rating agency is then rating any outstanding Series.

 

(e)           Unless

otherwise specified, references to any amount as on deposit or outstanding on

any particular date shall mean such amount at the close of business on such

day.

 

(f)            The

words “hereof,” “herein,” “hereunder” and words of similar import when used in

this Indenture shall refer to this Indenture as a whole and not to any

particular provision of this Indenture; references to any subsection, Section,

Schedule or Exhibit are references to subsections, Sections, Schedules and

Exhibits in or to this Indenture unless otherwise specified; and the term

“including” means “including without limitation.”

 

ARTICLE II

 

THE NOTES

 

Section 2.01.          Form

Generally.

 

Any Series or Class of Notes, together with the

Indenture Trustee’s certificate of authentication related thereto, may be

issued in definitive form and shall be in substantially the form of an exhibit

to the related Indenture Supplement with such appropriate insertions,

omissions, substitutions and other variations as are required or permitted by

this Indenture or such Indenture 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 such 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 terms of any

Notes set forth in an exhibit to the related Indenture Supplement are part of

the terms of this Indenture, as applicable.

 

14

 

The Definitive Notes shall be typewritten, printed,

lithographed or engraved or produced by any combination of these methods, all

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

execution of such Notes.

 

Each Note will be dated the Closing Date of the

related Series and each Definitive Note will be dated as of the date of its

authentication.

 

Section 2.02.          Denominations.

 

Except as otherwise specified in the related Indenture

Supplement and the Notes, each Class of Notes of each Series shall be issued in

definitive form in minimum amounts of $100,000 and in integral multiples of $1

in excess thereof, and shall be issued upon initial issuance as one or more

Notes in an aggregate original principal amount equal to the applicable

Invested Amount for such Class or Series.

 

Section 2.03.          Execution,

Authentication and Delivery.

 

Each Note shall be executed by manual or facsimile

signature on behalf of the Issuer by an Authorized Officer.

 

Notes bearing the manual or facsimile signature of an

individual who was, at the time when such signature was affixed, authorized to

sign on behalf of the Issuer shall not be rendered invalid, notwithstanding the

fact that such individual ceased to be so authorized prior to the

authentication and delivery of such Notes or does not hold such office at the

date of issuance of such Notes.

 

At any time and from time to time after the execution

and delivery of this Indenture, the Issuer may deliver Notes executed by the

Issuer to the Indenture Trustee for authentication and delivery, and the

Indenture Trustee shall authenticate and deliver such Notes as provided in this

Indenture or the related Indenture Supplement and not otherwise.

 

No Note shall be entitled to any benefit under this

Indenture or the applicable Indenture Supplement or be valid or obligatory for

any purpose, unless there appears on such Note a certificate of authentication

substantially in the form provided for herein or in the related Indenture

Supplement executed by or on behalf of the Indenture Trustee by the manual

signature of a duly authorized signatory, and such certificate upon any Note

shall be conclusive evidence, and the only evidence, that such Note has been

duly authenticated and delivered hereunder.

 

Section 2.04.          Authenticating

Agent.

 

(a)           The

Indenture Trustee may appoint one or more authenticating agents with respect to

the Notes which shall be authorized to act on behalf of the Indenture Trustee

in authenticating the Notes in connection with the issuance, delivery,

registration of transfer, exchange or repayment of the Notes.  The Indenture Trustee shall be the initial

authenticating agent.  Whenever

reference is made in this Indenture to the authentication of Notes by the

Indenture Trustee or the Indenture Trustee’s certificate of authentication,

such reference shall be deemed to include authentication on behalf of the

Indenture Trustee by an authenticating agent and a certificate of

authentication executed on behalf of the Indenture Trustee by an authenticating

agent.  Each authenticating agent must

be acceptable to the Issuer.

 

15

 

(b)           Any

institution succeeding to the corporate agency business of an authenticating

agent shall continue to be an authenticating agent without the execution or filing

of any power or any further act on the part of the Indenture Trustee or such

authenticating agent.

 

(c)           An

authenticating agent may at any time resign by giving written notice of

resignation to the Indenture Trustee, the Note Administrator and the Issuer.  The Indenture Trustee may at any time

terminate the agency of an authenticating agent by giving notice of termination

to such authenticating agent, to the Note Administrator and to the Issuer.  Upon receiving such a notice of resignation

or upon such a termination, or in case at any time an authenticating agent

shall cease to be acceptable to the Indenture Trustee, the Note Administrator

or the Issuer, the Indenture Trustee may promptly appoint a successor

authenticating agent.  Any successor

authenticating agent upon acceptance of its appointment hereunder shall become

vested with all the rights, powers and duties of its predecessor hereunder,

with like effect as if originally named as an authenticating agent.  No successor authenticating agent shall be

appointed unless acceptable to the Issuer.

 

(d)           The

Issuer agrees to pay to each authenticating agent from time to time reasonable

compensation for its services under this Section 2.04.

 

(e)           Pursuant

to an appointment made under this Section 2.04, the Notes may have endorsed

thereon, in lieu of or in addition to the Indenture Trustee’s certificate of

authentication, an alternative certificate of authentication in substantially

the following form:

 

“This is one of the Notes described in the

within-mentioned Agreement.

 

	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  as Authenticating Agent

  
	

   

  	

  for the Indenture

  Trustee

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Authorized Signatory”

  

 

(g)           The

provisions of Sections 6.01, 6.03, 6.04, 6.05, 6.07 and 6.09 shall be

applicable to any authenticating agent.

 

Section 2.05.          Registration

of and Limitations on Transfer and Exchange  of Notes.

 

(a)           The

Issuer shall cause to be kept a register (the “Note Register”) in which the entity acting as transfer

agent and registrar (the “Transfer Agent

and Registrar”) shall provide for the registration of Notes and

the registration of transfers of Notes. 

The Note Administrator initially shall be the Transfer Agent and

Registrar for the purpose of registering Notes and transfers of Notes as herein

provided.  Upon any resignation of any

Transfer Agent and Registrar, the Indenture Trustee shall act, or the Indenture

Trustee shall, with the consent of the Issuer, promptly appoint another bank or

trust company, having an office or agency located in the City of New York and

which agrees to act in accordance with the provisions of this Indenture

applicable to it, to act, as successor Transfer Agent and Registrar; provided,

however, that no resignation shall be effective and the Transfer Agent

and Registrar shall continue to perform its 

 

16

 

duties as the Note Registrar until the Indenture Trustee has assumed

such duties or until a successor Transfer Agent and Registrar has been

appointed.

 

(b)           The

Note Registrar shall maintain in the Borough of Manhattan, the City of New York

an office or offices or agency or agencies where Notes may be surrendered for

registration of transfer or exchange. 

The Note Registrar initially designates its corporate trust office

located at 111 Wall Street, Zone 3, 14th Floor, New York, New York

10005, Attention:  Structured Finance

Group/PACCT, Series 2002-1, telephone (212) 657-2183 for such purposes.  The Note Registrar shall give prompt notice

to the Indenture Trustee, the Certificate Trustee, the Note Administrator, the

Certificate Administrator, the Transferor, the Issuer, the Servicer and the

Noteholders of any change in the location of such office or agency.

 

(c)           If

a Person other than the Note Administrator is appointed by the Issuer as

Transfer Agent and Registrar, the Issuer will give the Note Administrator and

the Indenture Trustee prompt written notice of the appointment of a Transfer

Agent and Registrar and of the location, and any change in the location, of the

Transfer Agent and Registrar and Note Register.  The Note Administrator and the Indenture Trustee shall have the

right to inspect the Note Register at all reasonable times and to obtain copies

thereof, and the Note Administrator and the Indenture Trustee shall have the

right to rely upon a certificate executed on behalf of the Transfer Agent and

Registrar by an officer thereof as to the names and addresses of the

Noteholders and the principal amounts and numbers of such Notes.

 

(d)           Upon

surrender for registration of transfer of any Note at the office or agency of the

Transfer Agent and Registrar, to be maintained as provided in Section 3.02, if

the requirements of Section 8-401 of the UCC are met, the Issuer shall execute,

and upon receipt of such surrendered Note the Indenture Trustee or an

authenticating agent on its behalf shall authenticate and the Transfer Agent

and Registrar shall deliver to the Noteholder, in the name of the designated

transferee or transferees, one or more new Notes (of the same Series and Class)

in any authorized denominations of like aggregate principal amount.

 

(e)           At

the option of a Noteholder, Notes may be exchanged for other Notes (of the same

Series and Class) in any authorized denominations and of like aggregate

principal amount, upon surrender of such Notes to be exchanged at the office or

agency of the Transfer Agent and Registrar. 

Whenever any Notes are so surrendered for exchange, if the requirements

of Section 8-401 of the UCC are met, the Issuer shall execute, and upon receipt

of such surrendered Note the Indenture Trustee shall authenticate and deliver

to the Noteholder, the Notes which the Noteholder making the exchange is

entitled to receive.

 

(f)            All

Notes issued upon any registration of transfer or exchange of Notes shall

evidence the same obligations, evidence the same debt, and be entitled to the

same rights and privileges under this Indenture, as the Notes surrendered upon

such registration of transfer or exchange.

 

(g)           Every

Note presented or surrendered for registration of transfer or exchange shall be

duly endorsed by, or be accompanied by a written instrument of transfer in a

form satisfactory to the Transfer Agent and Registrar duly executed by, the

Noteholder thereof or its attorney-in-fact duly authorized in writing, and by

such other documents as the Transfer Agent and Registrar may reasonably

require.

 

(h)           The

registration of transfer of any Note shall be subject to the additional

requirements, if any, set forth in the related Indenture Supplement.

 

17

 

(i)            No

service charge shall be made for any registration of transfer or exchange of

Notes, but the Issuer, the Indenture Trustee, the Note Administrator and

Transfer Agent and 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 such Notes.

 

(j)            All

Notes surrendered for registration of transfer and exchange shall be delivered

to the Transfer Agent and Registrar and canceled by it for subsequent destruction

without liability on the part of either.

 

(k)           Unless

otherwise set forth in an Indenture Supplement, the preceding provisions of

this Section 2.05 notwithstanding, the Issuer shall not be required to make,

and the Transfer Agent and Registrar need not register, transfers or exchanges

of Notes for a period of twenty (20) days preceding the due date for any

payment with respect to the Note.

 

Section 2.06.          Mutilated,

Destroyed, Lost or Stolen Notes.

 

If (a) any mutilated Note is surrendered to the Transfer

Agent and Registrar, or the Transfer Agent and Registrar receives evidence to

its reasonable satisfaction of the destruction, loss or theft of any Note, and

(b) in case of destruction, loss, or theft there is delivered to the Indenture

Trustee, the Note Administrator or the Transfer Agent and Registrar such

security or indemnity as it may require to hold the Issuer, the Noteholders,

the Transfer Agent and Registrar, the Note Administrator and the Indenture

Trustee harmless, then, in the absence of notice to the Issuer, the Transfer

Agent and Registrar, the Note Administrator or the Indenture Trustee that such

Note has been acquired by a “protected purchaser” (as defined in the New York

UCC), the Issuer shall execute, and the Indenture Trustee or an authenticating

agent on its behalf shall authenticate and the Transfer Agent and Registrar

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

lost or stolen Note, a replacement Note of like class, tenor (including the

same date of issuance) and principal amount, bearing a number not

contemporaneously outstanding; provided, however, that if any

such mutilated, destroyed, lost or stolen Note shall have become or within

seven (7) days shall be due and payable, or shall have been selected or called

for redemption, instead of issuing a replacement Note, the Issuer may pay such

Note without surrender thereof, except that any mutilated Note shall be

surrendered.  If, after the delivery of

such replacement Note or payment of a destroyed, lost or stolen Note pursuant

to the proviso to the preceding sentence, a “protected purchaser” (as defined

in the New York UCC) of the original Note in lieu of which such replacement

Note was issued presents for payment such original Note, the Issuer, the Indenture

Trustee and the Note Administrator shall be entitled to recover such

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

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

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

“protected purchaser” (as defined in the New York UCC), and shall be entitled

to recover upon the security or indemnity provided therefor to the extent of

any loss, damage, cost or expense incurred by the Issuer, the Indenture Trustee

or the Note Administrator in connection therewith.

 

Upon the issuance of any replacement Note under this

Section 2.06, 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 Note Administrator, the Indenture Trustee or the

Transfer Agent and Registrar) connected therewith.

 

18

 

Every replacement Note issued pursuant to this Section

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

constitute complete and indefeasible evidence of debt of the Trust, as if

originally issued, whether or not the mutilated, destroyed, lost or stolen Note

shall be found at any time, and shall be entitled to all the benefits of this

Indenture equally and proportionately with any and all other Notes duly issued

hereunder.

 

The provisions of this Section 2.06 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 2.07.          Persons

Deemed Owners.

 

Prior to due presentment for registration of transfer

of any Note, the Issuer, the Indenture Trustee, the Note Administrator, the

Transfer Agent and Registrar and any agent of the Transferor, the Issuer, the

Indenture Trustee, the Note Administrator or the Transfer Agent and Registrar

shall treat the Person in whose name any Note is registered as the owner of

such Note for the purpose of receiving distributions pursuant to the terms of

the applicable Indenture Supplement and for all other purposes whatsoever,

whether or not such Note is overdue, and neither the Issuer, the Transferor,

the Indenture Trustee, the Note Administrator, the Transfer Agent and Registrar

nor any agent of the Issuer, the Transferor, the Indenture Trustee, the Note

Administrator or the Transfer Agent and Registrar shall be affected by any

notice to the contrary.

 

Section 2.08.          Appointment

of Paying Agent.

 

(a)           The

Issuer reserves the right at any time to vary or terminate the appointment of a

Paying Agent for the Notes, and to appoint additional or other Paying Agents,

provided that it will at all times maintain the Note Administrator as Paying

Agent.

 

Notice of all changes in the identity or specified

office of a Paying Agent will be delivered promptly to the Noteholders by the

Note Administrator.

 

(b)           The

Note Administrator shall cause the Paying Agent (other than itself) to execute

and deliver to the Note Administrator and the Indenture Trustee an instrument

in which such Paying Agent shall agree with the Note Administrator and the

Indenture Trustee that such Paying Agent will hold all sums, if any, held by it

for payment to the Noteholders in trust for the benefit of the Noteholders

entitled thereto until such sums shall be paid to such Noteholders and shall

agree, and if the Note Administrator is the Paying Agent it hereby agrees, that

it shall comply with all requirements of the Code regarding the withholding by

the Note Administrator of payments in respect of federal income taxes due from

the Beneficial Owners.

 

Section 2.09.          Access

to List of Noteholders’ Names and Addresses.

 

(a)           The

Issuer will furnish or cause to be furnished to the Indenture Trustee, the

Servicer, any Noteholder, the Transfer Agent and Registrar, the Note

Administrator or the Paying Agent, within five (5) Business Days after receipt

by the Issuer of a written request therefor from the Indenture Trustee, the

Servicer, such Noteholder, the Transfer Agent and Registrar, the Note

Administrator or the Paying Agent, respectively, a list of the names and

addresses of the Noteholders.  Unless

otherwise provided in the related Indenture Supplement, holders of 10% of the

Outstanding Amount of the Notes of any Series (the “Applicants”) may apply in writing to

the Note Administrator, and if such application states that the Applicants

desire to communicate with other Noteholders of any Series with respect to

their rights under this 

 

19

 

Indenture or under the Notes and is accompanied by a copy of the

communication which such Applicants propose to transmit, then the Note Administrator,

after having been adequately indemnified by such Applicants for its costs and

expenses, shall afford or shall cause the Transfer Agent and Registrar to

afford such Applicants access during normal business hours to the most recent

list of Noteholders held by the Note Administrator and shall give the Servicer

notice that such request has been made, within five (5) Business Days after the

receipt of such application.  Such list

shall be as of a date no more than forty-five (45) days prior to the date of

receipt of such Applicants’ request; provided that the Certificate

Trustee as Holder, if applicable, shall vote in accordance with the provisions

of the relevant Pass-Through Trust Agreement.

 

(b)           Every

Noteholder, by receiving and holding a Note, agrees that none of the Issuer,

the Indenture Trustee, the Note Administrator, the Transfer Agent and

Registrar, the Paying Agent and the Servicer or any of their respective agents

and employees shall be held accountable by reason of the disclosure of any such

information as to the names and addresses of the Noteholders hereunder,

regardless of the sources from which such information was derived.

 

Section 2.10.          Cancellation.

 

All Notes surrendered for payment, registration of

transfer, exchange or redemption shall, if surrendered to any Person other than

the Note Administrator, be delivered to the Transfer Agent and Registrar and

shall be promptly canceled by it. 

Pursuant to an Issuer Request, the Issuer may at any time deliver to the

Transfer Agent and Registrar for cancellation any Notes previously

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

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

by the Transfer Agent and Registrar.  No

Notes shall be authenticated in lieu of or in exchange for any Notes canceled

as provided in this Section 2.10, except as expressly permitted by this

Indenture.  All canceled Notes held by

the Transfer Agent and Registrar shall be destroyed unless the Issuer shall direct

by a timely order that they be returned to it.

 

Section 2.11.          New

Issuances.

 

(a)           Pursuant

to one or more Indenture Supplements, the Issuer may from time to time issue

one or more new Series of Notes (a “New

Issuance”).  The Notes of

all outstanding Series shall be equally and ratably entitled as provided herein

to the benefits of this Indenture without preference, priority or distinction,

all in accordance with the terms and provisions of this Indenture and the

applicable Indenture Supplement except, with respect to any Series or Class, as

provided in the related Indenture Supplement. 

Interest on the Notes of all outstanding Series shall be paid on each

Distribution Date as specified in the Indenture Supplement relating to such

outstanding Series.  Principal of the

Notes of each outstanding Series shall be paid as specified in the Indenture

Supplement relating to such outstanding Series.  An overcollateralization interest may also be issued in

connection with any such New Issuance.

 

(b)           On

or before the Series Issuance Date relating to any new Series of Notes, the

parties hereto will execute and deliver an Indenture Supplement which will

specify the Principal Terms of such Series. 

The terms of such Indenture Supplement may modify or amend the terms of

this Indenture solely as applied to such new Series.  The obligation of the Owner Trustee to execute, on behalf of the

Issuer, the Notes of any Series and of the Indenture Trustee or an

authenticating agent on its behalf to authenticate such Notes and to execute

and deliver the related Indenture Supplement (other than any Series issued

pursuant to an Indenture Supplement dated of even date herewith) is subject to

the satisfaction of the following conditions:

 

20

 

(i)            on or before the fifth Business Day

immediately preceding the Series Issuance Date the Issuer shall have given the

Owner Trustee, the Indenture Trustee, the Note Administrator, the Servicer, the

O/C Holder, the Transferor and each Rating Agency notice (unless such notice

requirement is otherwise waived) of such issuance and the Series Issuance Date;

 

(ii)           the Issuer shall have delivered to

the Owner Trustee, the Note Administrator and the Indenture Trustee any related

Indenture Supplement, in form satisfactory to the Owner Trustee (as such and in

its individual capacity), the Note Administrator and the Indenture Trustee,

executed by each party;

 

(iii)          the Issuer shall have delivered to the

Owner Trustee, the Note Administrator and the Indenture Trustee any related

Enhancement Agreement executed by the provider of the credit enhancement and

the other parties thereto;

 

(iv)          the Rating Agency Condition shall have

been satisfied with respect to such issuance;

 

(v)           such issuance will not result in any

Adverse Effect and the O/C Holder shall have delivered to the Owner Trustee,

the Note Administrator and the Indenture Trustee an Officer’s Certificate,

dated the Series Issuance Date to the effect that (i) the O/C Holder

reasonably believes that such issuance will not, based on the facts known to

such officer at the time of such certification, have an Adverse Effect, and

(ii) all conditions precedent to such execution, authentication, and

delivery have been satisfied; and

 

(vi)          there shall have been delivered to the

Owner Trustee, the Note Administrator and the Indenture Trustee (with a copy to

each Rating Agency) a Tax Opinion, dated the Series Issuance Date with respect

to such issuance.

 

Any Note held by the Transferor at any time after the

date of its initial issuance may be transferred or exchanged only upon the

delivery to the Owner Trustee, the Note Administrator and the Indenture Trustee

of a Tax Opinion dated as of the date of such transfer or exchange, as the case

may be, with respect to such transfer or exchange.

 

Upon satisfaction of the above conditions (with

respect to which the Owner Trustee, the Indenture Trustee and the Note

Administrator may rely on a certificate of the Administrator or the O/C

Holder), pursuant to Section 2.03, the Owner Trustee, on behalf of the Issuer,

shall execute and the Indenture Trustee shall authenticate and deliver the

Notes of such Series as provided in this Indenture and the applicable Indenture

Supplement.  Notwithstanding the

provisions of this Section 2.11, prior to the execution of any Indenture

Supplement (other than any Indenture Supplement dated of even date herewith),

the Indenture Trustee, the Note Administrator and the Owner Trustee shall be

entitled to receive and rely upon an Opinion of Counsel stating that the

execution of such Indenture Supplement is authorized or permitted by this

Indenture and any Indenture Supplement related to any outstanding Series.  The Indenture Trustee, the Note

Administrator and the Owner Trustee may, but shall not be obligated to, enter

into any such Indenture Supplement which adversely affects the Indenture

Trustee’s, the Note Administrator’s or the Owner Trustee’s (as such or in its

individual capacity) own rights, duties, benefits, protections, privileges or

immunities under this Indenture.

 

21

 

ARTICLE III

 

COVENANTS OF ISSUER

 

Section 3.01.          Payment

of Principal and Interest.

 

(a)           The

Issuer will duly and punctually pay principal and interest in accordance with

the terms of the Notes and the O/C Certificate as specified in the relevant

Indenture Supplement.

 

(b)           The

Noteholders and the O/C Holder of a Series as of the Record Date in respect of

a Distribution Date shall be entitled to the interest accrued and payable and

principal payable on such Distribution Date as specified in the related

Indenture Supplement.  All payment

obligations under a Note or an O/C Certificate are discharged to the extent

such payments are made to the Noteholder or the O/C Holder, as applicable, of

record.

 

Section 3.02.          Maintenance

of Office or Agency.

 

The Issuer will maintain an office or agency within

the Borough of Manhattan, City of New York and such other locations as may be

set forth in an Indenture Supplement where Notes may be presented or surrendered

for payment, where Notes may be surrendered for registration of transfer or

exchange and where notices and demands to or upon the Issuer in respect of the

Notes and this Indenture may be served. 

The Issuer hereby initially appoints the Note Administrator at its

Corporate Trust Office to serve as its agent for the foregoing purposes.  The Issuer will give prompt written notice

to the Transferor, the Note Administrator, the Indenture Trustee, the Note

Administrator and the Noteholders 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 and the Note Administrator

with the address thereof, such presentations, surrenders, notices and demands

may be made or served at the Corporate Trust Office, and the Issuer hereby

appoints the Note Administrator at its Corporate Trust Office as its agent to

receive all such presentations, surrenders, notices and demands.

 

Section 3.03.          Money

for Note Payments to Be Held in Trust.

 

As specified in Section 8.03 herein and in the related

Indenture Supplement, all payments of amounts due and payable with respect to

the Notes or the O/C Certificate which are to be made from amounts withdrawn

from the Collection Account or any Series Account shall be made from amounts

held therein on behalf of the Issuer by the Indenture Trustee or by the Paying

Agent, and no amounts so withdrawn from the Collection Account or any Series

Account shall be paid over to or at the direction of the Issuer except as

provided in this Section 3.03 and in the related Indenture Supplement.

 

Whenever the Issuer shall have a Paying Agent in

addition to the Note Administrator, it will, on or before the Business Day next

preceding each Distribution Date, direct the Note Administrator to deposit with

such Paying Agent on or before such Distribution Date an aggregate sum

sufficient to pay the amounts then becoming due, such sum to be (i) held in

trust for the benefit of Persons entitled thereto and (ii) invested,

pursuant to an Issuer Order, by the Paying Agent in an Eligible Investment in

accordance with the terms of this Indenture and the related Indenture

Supplement.  For all investments made by

a Paying Agent under this Section 3.03, such Paying Agent shall be entitled to

all of the rights and obligations of the Indenture 

 

22

 

Trustee and the Note Administrator under the related Indenture

Supplement, such rights and obligations being incorporated in this paragraph by

this reference.

 

The Issuer will cause each Paying Agent other than the

Note Administrator or the Indenture Trustee to execute and deliver to the

Indenture Trustee and the Note Administrator an instrument in which such Paying

Agent shall agree with the Indenture Trustee and the Note Administrator (and if

the Note Administrator or the Indenture Trustee acts as Paying Agent, it hereby

so agrees), subject to the provisions of this Section 3.03, that such

Paying Agent, in acting as Paying Agent, is an express agent of the Issuer and,

further, that such Paying Agent will:

 

(i)            hold all sums held by it for the

payment of amounts due with respect to the Notes and the O/C Certificate in

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

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

sums to such Persons as herein provided;

 

(ii)           give the Indenture Trustee notice of

any default by the Issuer (or any other obligor upon the Notes) of which a

Responsible Officer of the Paying Agent has actual knowledge in the making of

any payment required to be made with respect to the Notes;

 

(iii)          at any time during the continuance of

any such default, upon the written request of the Indenture Trustee, forthwith

pay to the Indenture Trustee all sums so held in trust by such Paying Agent;

 

(iv)          immediately resign as a Paying Agent

and forthwith pay to the Indenture Trustee all sums held by it by in trust for

the payment of Notes and the O/C Certificate if at any time it ceases to meet

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

appointment; and

 

(v)           comply with all requirements of the

Code with respect to the withholding from any payments made by it on any Notes

of any applicable withholding taxes imposed thereon and with respect to any

applicable reporting requirements in connection therewith.

 

The Issuer may at any time, for the purpose of

obtaining the satisfaction and discharge of this Indenture or for any other

purpose, by Issuer Order direct any Paying Agent to pay to the Indenture

Trustee or the Note Administrator all sums held in trust by such Paying Agent,

such sums to be held by the Indenture Trustee or the Note Administrator, as the

case may be, upon the same trusts as those upon which such sums were held by

such Paying Agent; and upon such payment by any Paying Agent to the Indenture

Trustee or the Note Administrator, as the case may be, such Paying Agent shall

be released from all further liability with respect to such money.

 

Section 3.04.          Existence.

 

The Issuer will keep in full effect its existence,

rights and franchises as a business 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 

 

23

 

enforceability of this Indenture, the Notes, the O/C Certificate (if so

specified in the related Indenture Supplement), the Collateral and each other

related instrument or agreement.

 

Section 3.05.          Protection

of Trust.

 

The Issuer will from time to time prepare, or cause to

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

all such financing statements, amendments to financing statements, instruments

of further assurance and other instruments, and will take such other action

necessary or advisable to:

 

(a)           Grant

more effectively all or any portion of the Collateral as security for the Notes

and the other interests in the Receivables as specified in the related

Indenture Supplement;

 

(b)           maintain

or preserve the Lien (and the priority thereof) of this Indenture or to carry

out more effectively the purposes hereof;

 

(c)           perfect,

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

this Indenture;

 

(d)           enforce

any of the Collateral; or

 

(e)           preserve

and defend title to the Collateral securing the Notes and the other interests in

the Receivables as specified in the related Indenture Supplement and the rights

therein of the Indenture Trustee, the Noteholders and the holders of such other

interests secured thereby against the claims of all Persons and parties.

 

The Issuer hereby designates the Administrator its

agent and attorney-in-fact to execute any financing statement, amendment to a

financing statement or other instrument required pursuant to this Section 3.05.

 

The Issuer shall pay or cause to be paid any taxes

levied on all or any part of Receivables securing the Notes and the other

interests in the Receivables as specified in the related Indenture Supplement.

 

Section 3.06.          Opinions

as to Collateral.

 

(a)           On

the Series Issuance Date relating to any new Series of Notes, the Issuer shall

furnish to the Indenture Trustee and the Note Administrator an Opinion of

Counsel (with a copy to each Rating Agency) either stating that, in the opinion

of such counsel, such action has been taken to perfect the security interest of

this Indenture and the related Indenture Supplement, including without

limitation with respect to the recording and filing of this Indenture, any

indentures supplemental hereto, and any other requisite documents, and with

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

to financing statements, as is necessary and reciting the details of such

action, or stating that, in the opinion of such counsel, no such action is

necessary to maintain the perfection of such security interest, and that such

perfected security interest is of first priority.

 

(b)           On

or before June 30 in each calendar year, beginning in 2003, the Issuer shall

furnish to the Indenture Trustee and the Note Administrator an Opinion of

Counsel (with a copy to each Rating Agency) either stating that, in the opinion

of such counsel, such action has 

 

24

 

been taken to perfect the security interest of this Indenture and the

related Indenture Supplement, including without limitation with respect to the

recording, filing, re-recording and refiling of this Indenture, any indentures

supplemental hereto and any other requisite documents and with respect to the

execution and filing of any financing statements and amendments to financing statements

as is necessary and reciting the details of such action or stating that in the

opinion of such counsel no such action is necessary to maintain the perfection

of such security interest, and that such perfected security interest is of

first priority.  Such Opinion of Counsel

shall also describe the recording, filing, re-recording and refiling of this

Indenture, any indentures supplemental hereto and any other requisite documents

and the execution and filing of any financing statements and amendments to

financing statements that will, in the opinion of such counsel, be required to

maintain the perfection of the Lien and security interest of this Indenture

until June 30 in the following calendar year.

 

Section 3.07.          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 Collateral or that would result in the amendment,

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

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

expressly provided in this Indenture, the Transfer and Servicing Agreement or

such other instrument or agreement.

 

(b)           The

Issuer may contract with other Persons to assist it in performing its duties

under this Indenture, and any performance of such duties by a Person identified

to the Indenture Trustee and the Note Administrator in an Officer’s Certificate

of the Issuer shall be deemed to be action taken by the Issuer.  Initially, the Issuer has contracted with

the Administrator to assist the Issuer in performing its duties under this

Indenture.

 

(c)           The

Issuer will punctually perform and observe all of its obligations and

agreements contained in this Indenture, the other Transaction Documents and in

the instruments and agreements relating to the Collateral, including but not

limited to filing or causing to be filed all financing statements and

amendments to financing statements required to be filed by the terms of this

Indenture and the Transfer and Servicing Agreement in accordance with and

within the time periods provided for herein and therein.  Except as otherwise expressly provided

herein or therein, the Issuer shall not waive, amend, modify, supplement or

terminate any Transaction Document or any provision thereof without the consent

of the Holders of at least 66-2/3% of the Outstanding Amount of the Notes of

each adversely affected Series; provided that the Certificate Trustee as

Holder, if applicable, shall vote in accordance with the provisions of the

relevant Pass-Through Trust Agreement. 

The Issuer agrees to provide each Rating Agency with notice of such

waiver, amendment, modification, supplement or termination.

 

(d)           If

the Issuer shall have knowledge of the occurrence of a Servicer Default under

the Transfer and Servicing Agreement, the Issuer shall provide notice thereof

to the Note Administrator and shall cause the Note Administrator to promptly

notify the Transferor, the O/C Holder and the Rating Agencies thereof, and the

Issuer shall specify in the notice to the Note Administrator the action, if

any, being taken with respect to such default. 

If a Servicer Default shall arise from the failure of the Servicer to

perform any of its duties or obligations under the Transfer and Servicing

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

steps available to it to remedy such failure.

 

25

 

(e)           The

Note Administrator hereby agrees to the provisions of Sections 5.05, 7.01 and

7.02 of the Transfer and Servicing Agreement.

 

(f)            Without

derogating from the absolute nature of the assignment granted to the Indenture

Trustee under this Indenture or the rights of the Indenture Trustee hereunder,

the Issuer agrees (i) that it will not, without the prior written consent

of the Indenture Trustee acting at the direction of the Holders of at least

66-2/3% of the Outstanding Amount of the Notes of each Class of each Series,

amend, modify, waive, supplement, terminate or surrender, or agree to any

amendment, modification, supplement, termination, waiver or surrender of, the

terms of any Collateral (except to the extent otherwise provided in the

Transfer and Servicing Agreement) or the Transaction Documents (except to the

extent otherwise provided in the Transaction Documents), or waive timely

performance or observance by the Servicer or the Transferor under the Transfer

and Servicing Agreement; and (ii) that any such amendment shall not (A) 

reduce in any manner the amount of, or delay the timing of, collections of

payments on the Receivables or distributions that are required to be made for

the benefit of the Noteholders or (B) reduce the aforesaid percentage of

the Notes that is required to consent to any such amendment, without the

consent of the Holders of all the Outstanding Notes.  If any such amendment, modification, supplement or waiver shall

be so consented to by the Indenture Trustee and such Noteholders, the Issuer

agrees, promptly following a request by the Indenture Trustee to do so, to

execute and deliver, in its own name and at its own expense, such agreements,

instruments, consents and other documents as the Indenture Trustee may deem

necessary or appropriate in the circumstances and to provide each Rating Agency

with notice of such amendment, modification, supplement or waiver.

 

(g)           The

Issuer shall deliver to the Note Administrator, as agent of the Indenture

Trustee, any computer file or microfiche list of Accounts received by it

pursuant to the Transfer and Servicing Agreement.  Such file or list, as amended from time to time, is hereby

incorporated into and made a part of, this Indenture.

 

Section 3.08.          Negative

Covenants.

 

So long as any Notes or any other interests in the

Receivables as specified in the related Indenture Supplement are Outstanding,

the Issuer will not:

 

(a)           sell,

transfer, exchange, or otherwise dispose of any part of the Collateral except

as expressly permitted by this Indenture, any Indenture Supplement, the Trust

Agreement or the Transfer and Servicing Agreement;

 

(b)           claim

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

in respect of the Notes or the O/C Certificate (other than amounts properly

withheld from such payments under the Code or applicable state law) or assert

any claim against any present or former Noteholder by reason of the payment of

any taxes levied or assessed upon any part of the Collateral;

 

(c)           (A)

permit the validity or effectiveness of this Indenture to be impaired, or

permit the Lien of this Indenture to be amended, hypothecated, subordinated,

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

covenants or obligations with respect to the Notes under this Indenture except

as may be expressly permitted hereby, (B) permit any Lien (other than the Lien

of this Indenture) to be created on or extend to or otherwise arise upon or

burden the Collateral or any part thereof or any interest therein or the

proceeds thereof or

 

26

 

(C) permit the Lien of this Indenture not to constitute a valid

first priority security interest in the Collateral; or

 

(d)           voluntarily

dissolve or liquidate in whole or in part.

 

Section 3.09.          Statements

as to Compliance.

 

The Issuer will deliver to the Indenture Trustee and

the Note Administrator, within 120 days after the end of each calendar year, 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 the 12-month period ending December 31 of such year (or in the

case of the year ending December 31, 2002, the period from the first Closing

Date to December 31, 2002) 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 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 (A) shall be a

Person organized and existing under the laws of the United States of America or

any state thereof or the District of Columbia, (B) shall not be subject to

regulation as an “investment company” under the Investment Company Act and (C)

shall expressly assume, by an indenture supplemental hereto, executed and

delivered to the Indenture Trustee and the Note Administrator, in a form

satisfactory to the Indenture Trustee and the Note Administrator, 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 on

the part of the Issuer to be performed or observed;

 

(ii)           immediately after giving effect to

such transaction, no Event of Default or Redemption Event shall have occurred

and be continuing;

 

(iii)          the Issuer shall have delivered to the

Indenture Trustee and the Note Administrator an Officer’s Certificate and an

Opinion of Counsel each stating that (A) such consolidation or merger and such

supplemental indenture comply with this Section 3.10, (B) all conditions

precedent in this Section 3.10 relating to such transaction have been complied

with, and (C) such supplemental indenture is duly authorized, executed and

delivered and is valid, binding and enforceable against such Person;

 

(iv)          the Rating Agency Condition shall have

been satisfied with respect to such transaction;

 

27

 

(v)           the Issuer shall have received a Tax

Opinion and an Opinion of Counsel dated the date of such consolidation or

merger (and shall have delivered copies thereof to the Indenture Trustee, the

Note Administrator and each Rating Agency) to the effect that such transaction

will not have any material adverse federal income tax consequence to any

Noteholder; and

 

(vi)          any action that is necessary to

maintain the Lien and security interest created by this Indenture and any

Indenture Supplement shall have been taken.

 

(b)           Except

as otherwise expressly permitted by this Indenture or the other Transaction

Documents, the Issuer shall not convey or transfer any of its properties or

assets, including those included in the Collateral, substantially as an

entirety 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 Person organized and

existing under the laws of the United States of America or any state thereof or

the District of Columbia, (B) expressly assume, by an indenture supplemental

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

Administrator, in form satisfactory to the Indenture Trustee and the Note

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

provided herein, (C) expressly agree by means of such supplemental indenture

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 supplemental indenture, expressly agree to indemnify, defend

and hold harmless the Indenture Trustee and the Note Administrator against and

from any loss, liability or expense arising under or related to this Indenture

and the Notes and (E) not be subject to regulation as an “investment

company” under the Investment Company Act;

 

(ii)           immediately after giving effect to

such transaction, no Event of Default or Redemption Event shall have occurred

and be continuing;

 

(iii)          the Rating Agency Condition shall have

been satisfied with respect to such transaction;

 

(iv)          the Issuer shall have received a Tax

Opinion and an Opinion of Counsel dated the date of such conveyance or transfer

(and shall have delivered copies thereof to the Indenture Trustee, the Note

Administrator and each Rating Agency) to the effect that such transaction will

not have any material adverse federal income tax consequence to any Noteholder;

 

(v)           any action that is necessary to

maintain the Lien and security interest created by this Indenture and any

Indenture Supplement shall have been taken; and

 

(vi)          the Issuer shall have delivered to the

Indenture Trustee and the Note Administrator an Officer’s Certificate and an

Opinion of Counsel each stating that (A) such conveyance or transfer and such

supplemental indenture 

 

28

 

comply with this Section 3.10, (B) all conditions

precedent in this Section 3.10 relating to such transaction have been complied

with, and (C) such supplemental indenture is duly authorized, executed and

delivered and is valid, binding and enforceable against such Person.

 

Section 3.11.          Successor

Substituted.

 

Upon any consolidation or merger, or any conveyance or

transfer of the properties and assets of the Issuer substantially as an

entirety in accordance with Section 3.10 hereof, the Person formed by or

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

to which such conveyance or transfer is made shall succeed to, and be

substituted for, and may exercise every right and power of, the Issuer under

this Indenture with the same effect as if such Person had been named as the

Issuer herein.  In the event of any such

conveyance or transfer, the Person named as the Issuer in the first paragraph

of this Indenture or any successor which shall theretofore have become such in

the manner prescribed in this Section 3.11 shall be released from its

obligations under this Indenture as issued immediately upon the effectiveness

of such conveyance or transfer.

 

Section 3.12.          No

Other Business.

 

The Issuer shall not engage in any business other than

the activities set forth in Section 2.03 of the Trust Agreement and all

activities incidental thereto or other than as required or authorized by the

terms of the Transaction Documents.

 

Section 3.13.          No

Borrowing.

 

The Issuer shall not issue, incur, assume, guarantee

or otherwise become liable, directly or indirectly, for any indebtedness except

as expressly provided for pursuant to the terms of the Transaction Documents

and the Notes.

 

Section 3.14.          Servicer’s

Obligations. The Issuer shall use all reasonable efforts to cause the Servicer

to comply with all of its obligations under the Transaction Documents.

 

Section 3.15.          Guarantees,

Loans, Advances and Other Liabilities.

 

Except as contemplated by this Indenture or the

Transfer and Servicing Agreement, the Issuer shall not make any loan or advance

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

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

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

liable, directly or indirectly, in connection with the obligations, stocks or

dividends of, or own, purchase, repurchase or acquire (or agree contingently to

do so) any stock, obligations, assets or securities of, or any other interest

in, or make any capital contribution to, any other Person.

 

Section 3.16.          Capital

Expenditures.

 

The Issuer shall not make any expenditure (by

long-term or operating lease or otherwise) for capital assets (either realty or

personalty).

 

29

 

Section 3.17.          Removal

of Administrator.

 

So long as any Notes or any other interests in the

Receivables specified in the related Indenture Supplement are outstanding, the

Issuer shall not remove the Administrator without cause unless the Rating Agency

Condition shall have been satisfied in connection with such removal.

 

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 Servicer, (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, (x) distributions as contemplated

by, and to the extent funds are available for such purpose under, the Transfer

and Servicing Agreement, the Trust Agreement or any Indenture Supplement and

(y) payments to the Indenture Trustee and the Note Administrator pursuant to

Section 6.07 hereof.  The Issuer will

not, directly or indirectly, make payments to or distributions from the

Collection Account or any Series Account except in accordance with the

Transaction Documents.

 

Section 3.19.          Notice

of Events of Default

 

The Issuer agrees to give the Transferor, the

Servicer, the Indenture Trustee, the Note Administrator and the Rating Agencies

prompt written notice of each Event of Default hereunder and, immediately after

obtaining knowledge of any of the following occurrences, written notice of each

default on the part of the Servicer, the O/C Holder or the Transferor of its

obligations under the Transfer and Servicing Agreement, each default on the

part of the Accounts Owner of its obligations under the Receivables Purchase

Agreement and any action taken by the Indenture Trustee pursuant to

Section 5.05 of this Indenture.

 

Section 3.20.          Further

Instruments and Acts.

 

Upon request of the Indenture Trustee or the Note

Administrator, 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 purposes of this Indenture.

 

ARTICLE IV

 

SATISFACTION AND

DISCHARGE

 

Section 4.01.          Satisfaction

and Discharge of this Indenture.

 

This Indenture shall cease to be of further effect

with respect to the Notes or any other interests in the Receivables specified

in the related Indenture Supplement except as to (a) rights of

registration of transfer and exchange, (b) substitution of mutilated,

destroyed, lost or stolen Notes, (c) the rights of Noteholders to receive

payments of principal thereof and interest thereon, (d) Sections 3.08,

3.11, 3.12 and 12.15, (e) the rights and immunities of the Indenture Trustee

and the Note Administrator hereunder, including the rights of the Indenture

Trustee and the Note Administrator under Section 6.07, (f) the obligations of

the Note Administrator under 

 

30

 

Section 4.02, and (g) the rights of Noteholders as beneficiaries hereof

with respect to the property so deposited with the Indenture Trustee and

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

Administrator, on demand of and at the expense of the Issuer, with the consent

of the O/C Holder, shall execute proper instruments (prepared by or on behalf

of the Issuer) acknowledging satisfaction and discharge of this Indenture with

respect to the Notes when:

 

(i)            either

 

(A)          all Notes and the O/C Certificate

theretofore authenticated and delivered (other than (1) Notes which have

been destroyed, lost or stolen and which have been replaced, or paid as

provided in Section 2.06, and (2) Notes or O/C Certificates for whose full

payment (principal and interest) money has theretofore been deposited in trust

or segregated and held in trust by the Indenture Trustee or the Note

Administrator) have been delivered to the Transfer Agent and Registrar for

cancellation; or

 

(B)           all Notes and O/C Certificates not

theretofore delivered to the Note Administrator for cancellation:

 

(1)           have become due and payable;

 

(2)           will become due and payable at the

Final Maturity Date for such Class or Series of Notes; or

 

(3)           are to be called for redemption

within one year under arrangements satisfactory to the Note Administrator for

the giving of notice of redemption by the Note Administrator in the name, and

at the expense, of the Issuer;

 

and the Issuer, in the case of (1), (2) or (3) above,

has irrevocably deposited or caused to be irrevocably deposited with the Note

Administrator cash or direct obligations of or obligations guaranteed by the

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

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

discharge the entire indebtedness on such Notes not theretofore delivered to

the Note Administrator for cancellation when due at the Final Maturity Date for

such Class or Series of Notes or the Redemption Date (if Notes shall have been

called for redemption pursuant to the related Indenture Supplement), as the

case may be;

 

(ii)           the Issuer has paid or caused to be

paid all other sums payable hereunder by the Issuer (including to any O/C

Holder); and

 

(iii)          the Issuer has delivered to the

Indenture Trustee and the Note Administrator an Officer’s Certificate and an

Opinion of Counsel, each meeting the applicable requirements of Section

12.01(a) and each stating that all conditions precedent herein provided for

relating to the satisfaction and discharge of this Indenture have been complied

with.

 

Section 4.02.          Application

of Trust Money.

 

All monies deposited with the Note Administrator

pursuant to Section 4.01 hereof shall be held in trust and applied by it, in

accordance with the provisions of the Notes, this Indenture and the applicable

Indenture Supplement, to make payments, either directly or through 

 

31

 

any Paying Agent, as the Note Administrator may determine, to the

Noteholders and for the payment in respect of which such monies have been

deposited with the Note Administrator, 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 Transfer and

Servicing Agreement or required by law.

 

ARTICLE V

 

REDEMPTION EVENTS,

DEFAULTS AND REMEDIES

 

Section 5.01.          Redemption

Events.

 

If the Trust shall become subject to regulation as an

“investment company” within the meaning of the Investment Company Act (a “Trust Redemption Event”), then a

Redemption Event with respect to the Notes of all Series shall occur without

any notice or other action on the part of the Indenture Trustee or the

Noteholders immediately upon the occurrence of such event.

 

Upon the occurrence of a Redemption Event, a rapid

amortization period with respect to the Notes of all Series shall commence and

payment on the Notes of each Series will be made in accordance with the terms

of the related Indenture Supplement.

 

Section 5.02.          Events

of Default.  

 

“Event of Default,”

wherever used herein, means with respect to any Series any one of the following

events (whatever the reason for such Event of Default and whether it shall be

voluntary or involuntary or be effected by operation of law or pursuant to any

judgment, decree or order of any court or any order, rule or regulation of any

administrative or governmental body):

 

(a)           default

in the payment of the principal of any Note of that Series, if not previously

paid, when the same becomes due and payable; or

 

(b)           default

in the payment of any interest on the outstanding principal balance of (i) any

Class A Note (as any such Note may be designated in the related Indenture

Supplement) of that Series when the same becomes due and payable, and (ii) any

Class B Note (as any such Note may be designated in the related Indenture

Supplement) of that Series when the same becomes due and payable, but only if

all Class A Notes of such Series have been paid in full; and such default shall

continue after the earlier to occur of (A) the next following date upon which

interest becomes due and payable and (B) the date occurring 35 days

following the date on which such interest became due and payable; or

 

(c)           default

in the observance or performance of any covenant or agreement of the Issuer

made in this Indenture made in respect of the Notes of such Series (other than

a covenant, or agreement, a default in the observance or performance of which

is elsewhere in this Section 5.02 specifically dealt with) (all of such

covenants and agreements in this Indenture which are not expressly stated to be

for the benefit of a particular Series being deemed to be in respect of the

Notes of all Series for this purpose), and such default shall continue or not

be cured for a period of sixty (60) days after there shall have been given, by

written registered or certified mail, return receipt requested to the Issuer by

the Indenture Trustee or to the Issuer and the Indenture Trustee by the Holders

of at least 50% of the Outstanding Amount of the Notes of such 

 

32

 

Series, a written notice specifying such default and requiring it to be

remedied and stating that such notice is a “Notice of Default” hereunder and, as a result of such

default, the interests of the Holders of the Notes are materially and adversely

affected and continue to be materially and adversely affected during such

60-day period; or

 

(d)           the

filing of a decree or order for relief by a court having jurisdiction in the

premises in respect of the Issuer in an involuntary case under any applicable

federal or state bankruptcy, insolvency or other similar law now or hereafter

in effect, or appointing a receiver, conservator, liquidator, assignee,

custodian, trustee, sequestrator or similar official for the Issuer or ordering

the winding-up or liquidation of the Issuer’s affairs, and such decree or order

shall remain unstayed and in effect for a period of sixty (60) consecutive

days; or

 

(e)           the

commencement by the Issuer of a voluntary case under any applicable federal or

state bankruptcy, insolvency or other similar law now or hereafter in effect,

or the consent by the Issuer to the entry of an order for relief in an

involuntary case under any such law, or the consent by the Issuer to the

appointment of or the taking possession by a receiver, liquidator, assignee,

custodian, trustee, sequestrator, conservator or similar official of the

Issuer, or the making by the Issuer of any general assignment for the benefit

of creditors, or the failure by the Issuer generally to pay, or the admission

in writing by the Issuer of its inability to pay, its debts as such debts

become due, or the taking of action by the Issuer in furtherance of any of the

foregoing.

 

The Issuer shall deliver to the Indenture Trustee,

within five (5) days after the occurrence thereof, written notice in the form

of an Officer’s Certificate of any event which with the giving of notice and

the lapse of time would become an Event of Default, its status and what action

the Issuer is taking or proposes to take with respect thereto.

 

Section 5.03.          Acceleration

of Maturity; Rescission and Annulment.

 

If an Event of Default described in paragraph (a), (b)

or (c) of Section 5.02 should occur and be continuing with respect to a Series,

then and in every such case the Indenture Trustee or the Controlling

Noteholders of such Series may declare all the Notes of such Series to be

immediately due and payable, by a notice in writing to the Issuer and the

Transferor (and to the Indenture Trustee if declared by Noteholders), and upon

any such declaration the unpaid principal amount of such Notes, together with

accrued and unpaid interest thereon through the date of acceleration, shall

become immediately due and payable.

 

If an Event of Default described in paragraph (d) or

(e) of Section 5.02 should occur and be continuing, then the unpaid principal

amount of the Notes, together with accrued and unpaid interest thereon through

the date of acceleration, shall automatically become, and shall be deemed to be

declared, due and payable.

 

At any time after such declaration of acceleration of

maturity has been made and before a judgment or decree for payment of the money

due has been obtained by the Indenture Trustee as hereinafter in this Article V

provided, the Controlling Noteholders, by written notice to the Issuer, the

Transferor and the Indenture Trustee, may rescind and annul such declaration

and its consequences.

 

No such rescission shall affect any subsequent default

or impair any right consequent thereto.

 

33

 

Section 5.04.          Collection

of Indebtedness and Suits for Enforcement by Indenture Trustee.

 

(a)           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

shall continue after the earlier to occur of (x) the next following date

upon which interest becomes due and payable and (y) the date occurring

thirty-five (35) days following the date on which such interest became due and

payable, or (ii) default is made in the payment of principal of any Note,

if and to the extent not previously paid, when the same becomes due and

payable, the Issuer will, upon demand of the Indenture Trustee, pay to the

Indenture Trustee, for the benefit of the Holders of the Notes of the affected

Series, 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, interest upon overdue

installments of interest, at the applicable Note Interest Rate borne by the

Notes of such Series, and in addition thereto will pay 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)           In

case the Issuer shall fail forthwith to pay such amounts upon such demand, the

Indenture Trustee, in its own name and as trustee of an express trust, may

institute a Proceeding for the collection of the sums so due and unpaid, and

may prosecute such Proceeding to judgment or final decree, and may enforce the

same against the Issuer or other obligor upon such Notes and collect in the

manner provided by law out of the Collateral or the property of another obligor

upon such Notes, wherever situated, the monies adjudged or decreed to be

payable in the manner provided by law.

 

(c)           If

an Event of Default occurs and is continuing, the Indenture Trustee may, as more

particularly provided in Section 5.05, in its discretion, proceed to protect

and enforce its rights and the rights of the Noteholders of the affected

Series, by such appropriate Proceedings as the Indenture Trustee shall deem

most effective to protect and enforce any such rights, whether for the specific

enforcement of any covenant or agreement in this Indenture or in aid of the

exercise of any power granted herein, or to enforce any other proper remedy or

legal or equitable right vested in the Indenture Trustee by this Indenture or

by law.

 

(d)           In

case there shall be pending, relative to the Issuer or any other obligor upon

the Notes of the affected Series, or any Person having or claiming an ownership

interest in the Collateral, Proceedings under Title 11 of the United States

Code or any other applicable federal or state bankruptcy, insolvency or other

similar law now or hereafter in effect, or in case a receiver, conservator,

assignee or trustee in bankruptcy or reorganization, liquidator, sequestrator,

custodian or other 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 or Person, the Indenture Trustee, regardless

of whether the principal of any Notes shall then be due and payable as therein

expressed or by declaration or otherwise and regardless of whether the

Indenture Trustee shall have made any demand pursuant to the provisions of this

Section 5.04, shall be entitled and empowered, by intervention in such

Proceedings or otherwise:

 

(i)            to file and prove a claim or claims

for the whole amount of principal and interest owing and unpaid in respect of

the Notes of such Series and to file such other papers or documents as may be

necessary or advisable in order 

 

34

 

to have the claims of the Indenture Trustee (including

any claim for reasonable compensation to the Indenture Trustee and each

predecessor Indenture Trustee, and their respective agents, attorneys and

counsel, and for reimbursement of all expenses and liabilities incurred, and all

advances made, by the Indenture Trustee and each predecessor Indenture Trustee,

except as a result of negligence, willful misconduct or bad faith) and of the

Noteholders of such Series allowed in any Proceedings relative to the Issuer or

other obligor on the Notes, or to the creditors or property of the Issuer or

such other obligor;

 

(ii)           unless prohibited by applicable law

and regulations, to vote on behalf of the Holders of Notes of such Series in

any election of a trustee, a standby trustee or a Person performing similar

functions in any such Proceedings;

 

(iii)          to collect and receive any monies or

other property payable or deliverable on any such claims and to distribute all

amounts received with respect to the claims of the Noteholders of such Series

and of the Indenture Trustee on their behalf; and

 

(iv)          to file such proofs of claim and other

papers or documents as may be necessary or advisable in order to have the

claims of the Indenture Trustee or the Holders of Notes of such Series allowed

in any judicial Proceedings relative to the Issuer, its creditors and its

property;

 

and any trustee, receiver, conservator, liquidator, custodian,

assignee, sequestrator or other similar official in any such Proceeding is

hereby authorized by each of such Noteholders to make payments to the Indenture

Trustee, and, in the event that the Indenture Trustee shall consent to the

making of payments directly to such Noteholders, to pay to the Indenture

Trustee such amounts as shall be sufficient to cover reasonable compensation to

the Indenture Trustee, each predecessor Indenture Trustee and their respective

agents, attorneys and counsel, and all other expenses and liabilities incurred,

and all advances made, by the Indenture Trustee and each predecessor Indenture

Trustee except as a result of negligence, willful misconduct or bad faith.

 

(e)           Nothing

herein contained shall be deemed to authorize the Indenture Trustee to

authorize or consent to or vote for or accept or adopt on behalf of any

Noteholder any plan of reorganization, arrangement, adjustment or composition

affecting the Notes or the rights of any Holder thereof or to authorize the

Indenture Trustee to vote in respect of the claim of any Noteholder in any such

proceeding except, as aforesaid, to vote for the election of a trustee in

bankruptcy or similar Person.

 

(f)            All

rights of action and of asserting claims under this Indenture, or under any of

the Notes, may be enforced by the Indenture Trustee without the possession of

any of the Notes or the production thereof in any trial or other Proceedings

relative thereto, and any such action or Proceedings instituted by the

Indenture Trustee shall be brought in its own name as trustee of an express

trust, and any recovery of judgment, subject to the payment of the expenses,

disbursements and compensation of the Indenture Trustee, each predecessor

Indenture Trustee and their respective agents and attorneys, shall be for the

benefit of the Holders of the Notes of the affected Series as provided herein.

 

(g)           In

any Proceedings brought by the Indenture Trustee (except with respect to any

Proceedings involving the interpretation of any provision of this Indenture to

which the 

 

35

 

Indenture Trustee shall be a party), the Indenture Trustee shall be

held to represent all the Holders of the Notes of the affected Series, and it

shall not be necessary to make any such Noteholder a party to any such

Proceedings.

 

Section 5.05.          Remedies;

Priorities.

 

(a)           If

an Event of Default shall have occurred and be continuing with respect to any

Series, and the Notes of such Series have been accelerated pursuant to Section

5.03, the Indenture Trustee may do one or more of the following (subject to

Section 5.06):

 

(i)            institute Proceedings in its own

name and as trustee of an express trust for the collection of all amounts then

payable on the Notes of the affected Series or under this Indenture with

respect thereto, whether by declaration or otherwise, enforce any judgment

obtained, and collect from the Issuer the portion of the Collateral allocated

to such Series and from any other obligor upon such Notes monies adjudged due;

 

(ii)           subject to the last paragraph of this

subsection 5.05(a), take any other appropriate action to protect and enforce

the rights and remedies of the Indenture Trustee and the Holders of the Notes

of the affected Series; or

 

(iii)          cause

the Issuer to sell Principal Receivables in an amount equal to the Invested

Amount with respect to the accelerated Series and the related Finance Charge

Receivables (or interests therein) in accordance with Section 5.16 hereof;

 

provided, however, that the

Indenture Trustee may not exercise the remedy described in subparagraph (iii)

above unless (A) the Holders of 100% of the Outstanding Amount of the

Notes of the affected Series consent thereto, (B) the Indenture Trustee

determines (based solely upon the opinion of an Independent investment banking

firm obtained at the expense of the Issuer) that any proceeds of such exercise

distributable to the Noteholders of the affected Series will be at least

sufficient to discharge in full all amounts then due and unpaid upon such Notes

for principal and interest or (C) the Indenture Trustee determines (based

solely upon the opinion of an Independent investment banking firm obtained at

the expense of the Issuer) that the Collateral may not continue to provide

sufficient funds for the payment of principal of and interest on the Notes as

they would have become due if the Notes had not been declared due and payable,

and the Indenture Trustee obtains the consent of Holders of at least 66-2/3% of

the Outstanding Amount of the Class A Notes (as such Notes may be designated in

the related Indenture Supplement) of such affected Series, or, if the Class A

Notes have been paid in full, at least 66-2/3% of the outstanding principal

amount of the Class B Notes (as such Notes may be designated in the related

Indenture Supplement); provided that the Certificate Trustee as Holder,

if applicable, shall vote in accordance with the provisions of the relevant

Pass-Through Trust Agreement.

 

The remedies provided in this Section 5.05(a) are the

exclusive remedies provided to the Noteholders with respect to an Event of

Default and each of the Noteholders (by its acceptance of their respective

interests in the Notes) and the Indenture Trustee hereby expressly waive any

other remedy that may be available under the applicable UCC.

 

(b)           If

the Indenture Trustee collects any money or property for a Series pursuant to

this Article V following the acceleration of the maturities of the Notes

of such Series 

 

36

 

pursuant to Section 5.03 (so long as such declaration shall not have

been rescinded or annulled), it shall pay the money or property in the

following order:

 

FIRST:  to the Indenture Trustee and the Note

Administrator for amounts due pursuant to Section 6.07 and to pay other

Program Expenses under and in accordance with the related Indenture Supplement;

 

SECOND:  to the Servicer, the Servicing Fee under the

related Indenture Supplement;

 

THIRD:  to the Holders of the Class A Notes (as such

Notes may be designated in the related Indenture Supplement) of such Series for

amounts due and unpaid on such Notes for interest and principal, according to

the amounts due and payable on such Class A Notes for interest and principal; provided

that, in the event there are sub-classes of Class A Notes, such Notes will be

paid sequentially with the most senior sub-class being paid first;

 

FOURTH: to the Holders of

the Class B Notes (as such Notes may be designated in the related Indenture

Supplement) of such Series for amounts due and unpaid on such Notes for

interest and principal, according to the amounts due and payable on such Class

B Notes for interest and principal;

 

FIFTH:  to the O/C Holder, if any, in accordance

with Article IV of the related Indenture Supplement; and

 

SIXTH:  to the Issuer for distribution pursuant to

Article IV of the related Indenture Supplement.

 

(c)           The

Note Administrator may, upon notification to the Issuer, fix a record date and

payment date for any payment to Noteholders of the affected Series pursuant to

this Section 5.05.  At least fifteen

(15) days before such record date, the Note Administrator shall mail or send by

facsimile to each such Noteholder a notice that states the record date, the

payment date and the amount to be paid.

 

In addition to the application

of money or property referred to in subsection 5.05(b) for an accelerated

Series, amounts then held in the Collection Account or any Series Accounts for

such Series and any amounts available under the Series Enhancement for such

Series shall be used to make payments to the Holders of the Notes of such

Series and the Series Enhancer for such Series in accordance with the terms of

this Indenture, the related Indenture Supplement and the Series Enhancement for

such Series.  Following the sale of the

Collateral (or portion thereof) for a Series and the application of the

proceeds of such sale to such Series and the application of the amounts then

held in the Collection Account and any Series Accounts for such Series as are

allocated to such Series and any amounts available under the Series Enhancement

for such Series, such Series shall no longer be entitled to any allocation of

Collections or other property constituting the Collateral under this Indenture

and the Notes of such Series shall no longer be Outstanding.

 

Section 5.06.          Optional

Preservation of the Collateral  If

the Notes of any Series have been declared to be due and payable under Section

5.03 following an Event of Default and such declaration and its consequences

have not been rescinded and annulled, and the Indenture Trustee has not

received directions from the Noteholders pursuant to Section 5.12, the 

 

37

 

Indenture Trustee may, but need not, elect to maintain possession of

the portion of the Collateral allocated to such Notes.  It is the desire of the parties hereto and

the Noteholders that there be at all times sufficient funds for the payment of

principal of and interest on the Notes, and the Indenture Trustee shall take

such desire into account when determining whether or not to maintain possession

of the Collateral allocated to such Notes. 

In determining whether to maintain possession of the Collateral, the

Indenture Trustee shall obtain (at the expense of the Issuer) and rely upon an

opinion of an Independent investment banking or accounting firm of national

reputation as to the feasibility of such proposed action and as to the

sufficiency of the Collateral for such purpose.

 

Section 5.07.          Limitation

on Suits.

 

No Noteholder shall have any right to institute any

Proceedings, judicial or otherwise, with respect to this Indenture, or for the

appointment of a receiver or trustee, or for any other remedy hereunder,

unless:

 

(a)           the

Holders of not less than 25% of the Outstanding Amount of any affected Series

of Notes have made written request to the Indenture Trustee to institute such

Proceeding in its own name as indenture trustee hereunder; provided that

the Certificate Trustee as Holder, if applicable, shall vote in accordance with

the provisions of the relevant Pass-Through Trust Agreement;

 

(b)           such

Noteholder or Noteholders have previously given written notice to the Indenture

Trustee of a continuing Event of Default;

 

(c)           such

Noteholder or Noteholders have agreed to provide to the Indenture Trustee

indemnity satisfactory to it against the costs, expenses and liabilities to be

incurred in compliance with such request;

 

(d)           the

Indenture Trustee for sixty (60) days after its receipt of such notice, request

and offer of indemnity has failed to institute any such Proceeding; and

 

(e)           no

direction inconsistent with such written request has been given to the Indenture

Trustee during such 60-day period by the Majority Noteholders of such Series;

 

it being understood and intended that no one or more Noteholders of the

affected Series shall have any right in any manner whatever by virtue of, or by

availing of, any provision of this Indenture to affect, disturb or prejudice

the rights of any other Noteholders of such Series or to obtain or to seek to

obtain priority or preference over any other Noteholders of such Series or to

enforce any right under this Indenture, except in the manner herein provided.

 

In the event the Indenture Trustee shall receive

conflicting or inconsistent requests and indemnity from two (2) or more groups

of Noteholders of the affected Series, each representing less than a majority

of the Outstanding Amount of the Notes of such Series, the Indenture Trustee in

its sole discretion may determine what action, if any, shall be taken,

notwithstanding any other provisions of this Indenture.

 

38

 

Section 5.08.          Unconditional

Rights of Noteholders to Receive Principal and Interest.

 

Notwithstanding any other provision in this Indenture,

each Holder of a Note shall have the right which is absolute and unconditional

to receive payment of the principal of and interest in respect of such Note as

such principal and interest becomes due and payable and to institute suit for

the enforcement of any such payment, and such right shall not be impaired

without the consent of such Noteholder.

 

Section 5.09.          Restoration

of Rights and Remedies.

 

If the Indenture Trustee or any Noteholder has

instituted any Proceeding to enforce any right or remedy under this Indenture

and such Proceeding has been discontinued or abandoned, or has been determined

adversely to the Indenture Trustee or to such Noteholder, then and in every

such case the Issuer, the Indenture Trustee and the Noteholder shall, subject

to any determination in such Proceeding, be restored severally and respectively

to their former positions hereunder, and thereafter all rights and remedies of

the Indenture Trustee and the Noteholders shall continue as though no such

Proceeding had been instituted.

 

Section 5.10.          Rights

and Remedies Cumulative.

 

No right, remedy, power or privilege herein conferred

upon or reserved to  the Indenture

Trustee or to the Noteholders or the O/C Holder is intended to be  exclusive of any other right, remedy, power

or privilege, and every right, remedy, power or privilege shall, to the extent

permitted by law, be cumulative.  The

assertion or exercise of any right or remedy shall not preclude any other

further assertion or the exercise of any other appropriate right or remedy.

 

Section 5.11.          Delay

or Omission Not Waiver.

 

No failure to exercise and no delay in exercising, on

the part of the Indenture Trustee or of any Noteholder or other Person, any

right or remedy occurring hereunder upon any Event of Default shall impair any

such right or remedy or constitute a waiver thereof of any such Event of

Default or an acquiescence therein. 

Every right and remedy given by this Article V may be exercised from

time to time, and as often as may be deemed expedient, by the Indenture Trustee

or by the Noteholders, as the case may be.

 

Section 5.12.          Rights

of Noteholders to Direct Indenture Trustee.

 

The Controlling Noteholders of any affected Series (if

an Event of Default with respect to such Series has occurred and is continuing)

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 with respect to the Notes of such Series; provided, however,

that subject to Section 6.01:

 

(a)           the Indenture Trustee shall have the

right to decline any such direction if the Indenture Trustee, after being

advised by counsel, determines that the action so directed is in conflict with

any rule of law or with this Indenture, and

 

(b)           the Indenture Trustee shall have the

right to decline any such direction if the Indenture Trustee in good faith

shall, by a Responsible Officer of the Indenture 

 

39

 

Trustee, determine that the Proceedings so directed

would be illegal or involve the Indenture Trustee in personal liability or be

unjustly prejudicial to the Noteholders not parties to such direction.

 

Section 5.13.          Waiver

of Past Defaults.

 

Prior to the declaration of the acceleration of the

maturity of the Notes of the affected Series as provided in Section 5.03, the

Controlling Noteholders of such Series may, on behalf of all such Noteholders,

waive in writing any past default with respect to such Notes and its

consequences, except a default:

 

(a)           in the payment of the principal or

interest in respect of any Note of such Series; or

 

(b)           in respect of a covenant or provision

hereof that under Section 10.02 hereof cannot be modified or amended without

the consent of the Noteholder of each Outstanding Note of such Series affected.

 

Upon any such written waiver, such default shall cease

to exist, and any Event of Default arising therefrom shall be deemed to have

been cured, for every purpose of this Indenture; but no such waiver shall

extend to any subsequent or other default or impair any right consequent

thereon.

 

Section 5.14.          Undertaking

for Costs.

 

All parties to this Indenture agree, and each

Noteholder by its 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, 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 and expenses, 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 5.14 shall not apply to any suit instituted by the Indenture Trustee,

to any suit instituted by any Noteholder, or group of Noteholders (in

compliance with Section 5.07 hereof), holding in the aggregate more than 10% of

the principal balance of the Outstanding Notes of the affected Series, or to

any suit instituted by any Noteholder for the enforcement of the payment of the

principal or interest in respect of any Note on or after the Distribution Date

on which any of such amounts was due pursuant to the terms of such Note or the

applicable Indenture Supplement (or, in the case of redemption, on or after the

applicable Redemption Date); provided that the Certificate Trustee as

Holder, if applicable, shall vote in accordance with the provisions of the

relevant Pass-Through Trust Agreement.

 

Section 5.15.          Waiver

of Stay or Extension Laws.

 

The Issuer covenants (to the extent that it may

lawfully do so) that it will not at any time insist upon, or plead, or in any

manner whatsoever claim or take the benefit or advantage of, any stay or

extension law wherever enacted, now or at any time hereafter in force, which

may adversely affect the covenants or the performance of this Indenture; and

the Issuer (to the extent that it may lawfully do so) hereby expressly waives

all benefit or advantage of any such law, and covenants that it will not

hinder, delay or impede the execution of any power herein 

 

40

 

granted to the Indenture Trustee, but will suffer and permit the

execution of every such power as though no such law had been enacted.

 

Section 5.16.          Sale

of Receivables.

 

(a)           The

method, manner, time, place and terms of any sale of Receivables (or interests

therein) pursuant to Section 5.05(a)(iii) shall be commercially

reasonable.  The Indenture Trustee may

from time to time postpone any sale by public announcement made at the time and

place of such sale.  The Indenture

Trustee hereby expressly waives its right to any amount fixed by law as compensation

for any sale.

 

(b)           The

Indenture Trustee is hereby irrevocably appointed the agent and

attorney-in-fact of the Issuer in connection with any sale of Receivables

pursuant to Section 5.05(a)(iii).  No

purchaser or transferee at any such sale 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.

 

(c)           In its exercise of the foreclosure remedy

pursuant to Section 5.05(a)(iii), the Indenture Trustee shall solicit bids from

Permitted Assignees for the sale of

Principal Receivables in an amount at least equal to the Invested Amount with

respect to the affected Series of Notes at the time of sale and the related

Finance Charge Receivables (or interests therein).  The Indenture Trustee shall sell such Receivables (or interests

therein) to the bidder with the highest cash purchase offer.  The Transferor, its Affiliates or agents may

not participate or bid in such sale. 

The proceeds of any such sale shall be applied in accordance with

Section 5.05(b).

 

Section 5.17.          Action

on Notes.

 

The Indenture Trustee’s right to seek and recover

judgment on the Notes or under this Indenture shall not be affected by the

seeking or obtaining of or application for any other relief under or with

respect to this Indenture.  Neither the

Lien of this Indenture nor any rights or remedies of the Indenture Trustee or

the Noteholders shall be impaired by the recovery of any judgment by the Indenture

Trustee against the Issuer or by the levy of any execution under such judgment

upon any portion of the Collateral or upon any of the assets of the

Issuer.  Any money or property collected

by the Indenture Trustee shall be applied as specified in the applicable

Indenture Supplement.

 

ARTICLE VI

 

THE INDENTURE TRUSTEE;

THE NOTE ADMINISTRATOR

 

Section 6.01.          Notice

of Defaults.  As promptly as

practicable after, and in any event within 30 days after, the occurrence of any

Redemption Event of Event of Default of which a Responsible Officer of the

Indenture Trustee has actual knowledge hereunder, the Indenture Trustee shall

mail to the Noteholders and the Rating Agencies, notice of such default

hereunder actually known to a Responsible Officer of the Indenture Trustee,

unless such default shall have been cured or waived.

 

Section 6.02.          Certain

Rights of Indenture Trustee and Note Administrator.

 

(a)           the

Indenture Trustee, prior to the occurrence of an Event of Default of which a

Responsible Officer of the Indenture Trustee shall have actual knowledge and

after the 

 

41

 

curing of all such Events of Defaults which may have occurred,

undertakes to perform such duties and only such duties as are specifically set

forth in this Indenture.  If an Event of

Default of which a Responsible Officer of the Indenture Trustee shall have

actual knowledge has occurred and has not been cured or waived, the Indenture

Trustee shall exercise such of the rights and powers vested in it by this

Indenture, and use the same degree of care and skill in their exercise, as a

prudent person would exercise or use under the circumstances in the conduct of

such person’s own affairs;

 

(b)           the

Indenture Trustee and the Note Administrator, upon receipt of all resolutions,

certificates, statements, opinions, reports, documents, orders, or other

instruments furnished to it which are specifically required to be furnished

pursuant to any provision of this Indenture or any Indenture Supplement, shall

examine them to determine whether they conform to the requirements of this

Indenture and such Indenture Supplement; provided, however, that

neither the Indenture Trustee nor the Note Administrator shall be responsible

for the accuracy or content of any resolution, certificate, statement, opinion,

report, document, order or other instrument furnished by the Servicer, the

LLCs, the O/C Holders, the Issuer or any other party hereunder.  If any such instrument is found not to

conform in any material respect to the requirements of this Indenture or any

Indenture Supplement, the Indenture Trustee shall notify the Noteholders of

such instrument in the event that the Indenture Trustee, after so requesting,

does not receive a satisfactorily corrected instrument;

 

(c)           the

Indenture Trustee and the Note Administrator undertake to perform only such

duties as are specifically set forth in this Indenture and any Indenture

Supplements to which they are a party. 

No implied covenants or obligations shall be read into this Indenture or

such Indenture Supplements against the Indenture Trustee or the Note

Administrator and, in the absence of bad faith on the part of the Indenture

Trustee or the Note Administrator, as the case may be, the Indenture Trustee

and the Note Administrator may conclusively rely, as to the truth of the

statements and the correctness of the opinions expressed therein, upon any

certificates or opinions furnished to the Indenture Trustee and conforming to

the requirements of this Indenture and such Indenture Supplement, as

applicable;

 

(d)           the

Indenture Trustee and the Note Administrator may rely and shall be protected in

acting or refraining from acting in reliance upon any resolution, certificate,

statement, instrument, opinion, report, notice, request, direction, consent,

order, bond, debenture or other paper or document believed by it to be genuine

and to have been signed or presented by the proper party or parties;

 

(e)           any

request or direction of the Issuer mentioned herein shall be sufficiently

evidenced by an Issuer Order or Issuer Request;

 

(f)            whenever

in the administration of this Indenture or any Indenture Supplement the

Indenture Trustee or the Note Administrator shall deem it desirable that a

matter be proved or established prior to taking, suffering or omitting any

action hereunder or thereunder, the Indenture Trustee and the Note

Administrator (unless other evidence be herein specifically prescribed) shall

be entitled to receive and may, in the absence of bad faith on its part, rely

upon an Officer’s Certificate of the Issuer;

 

(g)           the

Indenture Trustee and the Note Administrator may consult with counsel and the

advice of such counsel or any Opinion of Counsel shall be full and complete

authorization and protection in respect of any action taken, suffered or

omitted by it hereunder in good faith and in reliance thereon;

 

42

 

(h)           subject

to the duty of the Indenture Trustee during the continuance of an Event of

Default to act with the required standard of care, neither the Indenture Trustee

nor the Note Administrator shall be under any obligation to exercise any of the

rights or powers vested in it by this Indenture at the request or direction of

any of the Noteholders pursuant to this Indenture or any Indenture Supplement,

unless such Noteholders shall have offered to the Indenture Trustee security or

indemnity reasonably satisfactory to it against the cost, expenses and

liabilities which might be incurred by it in compliance with such request or

direction;

 

(i)            neither

the Indenture Trustee nor the Note Administrator shall be bound to make any

investigation into the facts or matters stated in any resolution, certificate,

statement, instrument, opinion, report, notice, request, direction, consent,

order, bond, debenture or other paper or document;

 

(j)            the

Indenture Trustee and the Note Administrator may execute any of the trusts or

powers under this Indenture or any Indenture Supplement or perform any duties

under this Indenture or any Indenture Supplement either directly or by or through

agents, attorneys, custodians or nominees and neither the Indenture Trustee nor

the Note Administrator shall be responsible for any misconduct or negligence on

the part of, or for the supervision of, any agent, attorney, custodian or

nominee appointed with due care by it under this Indenture or any Indenture

Supplement;

 

(k)           the

Indenture Trustee and the Note Administrator shall not be liable in their

individual capacities with respect to any action taken or omitted to be taken

by it in good faith in accordance with this Indenture, any Indenture Supplement

or at the direction of the Majority Noteholders of an outstanding Series of

Notes relating to the time, method and place of conducting any proceeding for

any remedy available to the Indenture Trustee, or exercising any trust or power

conferred upon the Indenture Trustee or the Note Administrator, under this

Indenture or the related Indenture Supplement;

 

(l)            neither

the Indenture Trustee nor the Note Administrator shall be required to expend or

risk its own funds in the performance of any of its duties under this Indenture

or any Indenture Supplement, or in the exercise of any of its rights or powers,

if it shall have reasonable grounds for believing that repayment of such funds

or adequate indemnity against such risk is not reasonably assured to it and

none of the provisions contained in this Indenture or any Indenture Supplement

shall in any event require the Indenture Trustee or the Note Administrator to

perform, or be responsible for the manner of performance of, any of the

obligations of the Servicer, the Issuer, [CSG/Presidio], LLC or any other party

under any of the Transaction Documents;

 

(m)          when

the Indenture Trustee incurs expenses or renders services in connection with an

Event of Default specified in Section 5.02, such expenses (including the fees

and expenses of its counsel) and the compensation for such services are

intended to constitute expenses of administration under any bankruptcy law or

law relating to creditors rights generally;

 

(n)           neither

the Indenture Trustee nor the Note Administrator shall be charged with

knowledge of a default or an Event of Default or Redemption Event unless a

Responsible Officer obtains actual knowledge of such default, event, Event of

Default or Redemption Event; in the absence of the receipt of such notice, the

Indenture Trustee and the Note Administrator may conclusively assume that there

is no default, event, Event of Default or Redemption Event;

 

43

 

(o)           in

the event the Indenture Trustee or the Note Administrator is also acting as the

Paying Agent or an Authenticating Agent, the rights, powers, immunities and

indemnifications afforded to the Indenture Trustee and the Note Administrator

hereunder shall also be afforded to such Paying Agent or Authenticating Agent;

 

(p)           neither

the Indenture Trustee nor the Note Administrator shall be liable in its

individual capacity for an error of judgment made in good faith by one of their

Responsible Officers or other officers, unless it shall be proved that the

Indenture Trustee or the Note Administrator, as the case may be, was negligent

in ascertaining the pertinent facts;

 

(q)           neither

the Indenture Trustee nor the Note Administrator shall have any duty (i) to see

to any recording, filing, or depositing of this Indenture or any agreement

referred to herein or any financing statement or continuation statement

evidencing a security interest, or to see to the maintenance of any such

recording or filing or depositing or to any recording, refiling or redepositing

of any thereof, (ii) to see to any insurance or (iii) to provide or maintain

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 Collateral;

 

(r)            neither

the Indenture Trustee nor the Note Administrator shall be personally liable for

any action taken, suffered or omitted by it in good faith and believed by it to

be authorized or within the discretion or rights or powers conferred upon it by

this Indenture or any Indenture Supplement;

 

(s)           the

right of the Indenture Trustee and the Note Administrator to perform any

discretionary act enumerated in this Indenture or any Indenture Supplement

shall not be construed as a duty, and neither the Indenture Trustee nor the

Note Administrator shall be answerable other than for its negligence or willful

misconduct in the performance of such act; and

 

(t)            neither

the Indenture Trustee nor the Note Administrator shall be required to give any

bond or surety in respect of the execution of any of the trusts created hereby

or the powers granted hereunder.

 

Section 6.03.          [Reserved].

 

Section 6.04.          Not

Responsible for Recitals or Issuance of Notes.

 

The recitals contained herein and in the Notes, except

the certificate of authentication of the Indenture Trustee, shall be taken as

the statements of the Issuer, and neither the Indenture Trustee nor the Note

Administrator assumes any responsibility for their correctness.  Neither the Indenture Trustee nor the Note

Administrator makes any representation as to the validity or sufficiency of the

Agreement, the Notes, the Transaction Documents, the Receivables or any related

document.  Neither the Indenture Trustee

nor the Note Administrator shall be accountable for the use or application by

the Issuer of the proceeds from the Notes.

 

Section 6.05.          May

Hold Notes.

 

The Indenture Trustee, the Note Administrator, any

Paying Agent, Transfer Agent and Registrar or any other agent of the Issuer, in

its individual or any other capacity, may become the owner or pledgee of Notes

and may otherwise deal with the Issuer with the same 

 

44

 

rights it would have if it were not Indenture Trustee, the Note

Administrator, Paying Agent, Transfer Agent and Registrar or such other agent.

 

Section 6.06.          Money

Held in Trust.

 

Money held by the Indenture Trustee or the Note

Administrator in trust hereunder need not be segregated from other funds held

by such entity in trust hereunder except to the extent required herein or

required by law.  Neither the Indenture

Trustee nor the Note Administrator shall be under any liability for interest on

any money received by it hereunder except as otherwise agreed upon in writing

by the Indenture Trustee and the Issuer.

 

Section 6.07.          Compensation,

Reimbursement and Indemnification.

 

The Issuer shall pay to the Indenture Trustee, the

Note Administrator, the Certificate Trustee and the Certificate Administrator,

from time to time, reasonable compensation for all services rendered by the

Indenture Trustee, the Note Administrator, the Certificate Trustee and the

Certificate Administrator, as applicable, under the Transaction Documents or

the Pass-Through Trust Agreement, as applicable (which compensation shall not

be limited by any law on compensation of a trustee of an express trust).  The Issuer shall reimburse the Indenture

Trustee, the Note Administrator, the Certificate Trustee or the Certificate

Administrator for all of their respective reasonable out-of-pocket expenses

incurred or made, including costs of collection, in addition to the

compensation for its services.  Such

expenses shall include the reasonable compensation and expenses, disbursements

and advances of the Indenture Trustee’s, the Note Administrator’s, the

Certificate Trustee’s and the Certificate Administrator’s agents, counsel,

accountants and experts, except any such expense, disbursement or advance as

may arise from the such parties’ negligence, willful misconduct or bad

faith.  The Issuer shall indemnify, and

shall cause CSG, LLC to indemnify, each of the Indenture Trustee, the Note

Administrator, the Certificate Trustee and the Certificate Administrator and

their respective officers, directors, agents and employees against any and all

loss, liability or expense (including the fees of either in-house counsel or

outside counsel, but not both) incurred by it in connection with the

administration of this trust and the performance of their duties under the

Transaction Documents or the Pass-Through Trust Agreement, as applicable.  Each of the Indenture Trustee, the Note

Administrator, the Certificate Trustee and the Certificate Administrator shall

notify the Issuer promptly of any claim for which it may seek indemnity.  Failure by any such party to so notify the

Issuer shall not relieve the Issuer of its obligations hereunder unless such

loss, liability or expense could have been avoided with such prompt notification

and then only to the extent of such loss, expense or liability which could have

been so avoided.  The Indenture Trustee,

the Note Administrator, the Certificate Trustee and the Certificate

Administrator may have separate counsel and, if they do, the Issuer shall pay

the fees and expenses of such counsel.

 

The amount of compensation, reimbursement and

indemnification due to the Indenture Trustee and the Note Administrator shall

be as set forth in each Indenture Supplement.

 

The Issuer’s payment obligations to the Indenture

Trustee, the Note Administrator, the Certificate Trustee and the Certificate

Administrator, as the case may be pursuant to this Section 6.07 shall survive

the discharge of this Indenture.  When

the Indenture Trustee, the Note Administrator, the Certificate Trustee or the

Certificate Administrator incurs expenses after the occurrence of a Default

specified in subsection 5.02(d) or (e) 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.

 

45

 

Notwithstanding anything herein to the contrary, the

Indenture Trustee’s right to enforce any of the Issuer’s payment obligations

pursuant to this Section 6.07 shall be subject to the provisions of Sections

12.14 and 12.15.

 

Section 6.08.          Replacement

of Indenture Trustee and Note Administrator.

 

No resignation or removal of the Indenture Trustee or

Note Administrator and no appointment of a successor Indenture Trustee or

successor Note Administrator shall become effective until the acceptance of

appointment by the successor Indenture Trustee or successor Note Administrator

pursuant to this Section 6.08. The Indenture Trustee or the Note Administrator

may resign at any time by giving thirty (30) days written notice to the Issuer

and the O/C Holder.  The Majority

Noteholders, upon delivery of notice of such removal to the Issuer, may remove

the Indenture Trustee or the Note Administrator by so notifying the Indenture

Trustee or Note Administrator and may appoint a successor Indenture Trustee or

successor Note Administrator, as the case may be.  The Issuer may remove the Indenture Trustee or Note

Administrator, as the case may be, if:

 

(i)            the Indenture Trustee or Note

Administrator fails to comply with Section 6.11;

 

(ii)           the Indenture Trustee or Note

Administrator is adjudged a bankrupt or insolvent;

 

(iii)          a receiver of the Indenture Trustee or

Note Administrator or of such entity’s property shall be appointed, or any

public officer takes charge of the Indenture Trustee or Note Administrator or

of such entity’s property or affairs for the purpose of rehabilitation,

conservation or liquidation; or

 

(iv)          the Indenture Trustee or Note Administrator

otherwise becomes legally unable to act.

 

If the Indenture Trustee or Note Administrator resigns

or is removed or if a vacancy exists in the office of Indenture Trustee or Note

Administrator for any reason (the Indenture Trustee in such event being

referred to herein as the retiring Indenture Trustee and the Note Administrator

in such event being referred to herein as the retiring Note Administrator), the

Issuer shall promptly appoint a successor Indenture Trustee or Note

Administrator, as the case may be.  The

Issuer shall furnish each Rating Agency with a copy of any notice of

resignation or removal of a retiring Indenture Trustee or retiring Note

Administrator pursuant to this Section 6.08 promptly after receiving such

notice, in the case of a resignation by a retiring Indenture Trustee or

retiring Note Administrator, or delivering such notice, in the case of a

removal of a retiring Indenture Trustee or retiring Note Administrator by the

Issuer.

 

A successor Indenture Trustee or successor Note

Administrator shall deliver a written acceptance of its appointment to the

retiring Indenture Trustee or retiring Note Administrator, as the case may be,

the Administrator and the Issuer. 

Thereupon the resignation or removal of the retiring Indenture Trustee

or retiring Note Administrator shall become effective, and the successor

Indenture Trustee or successor Note Administrator shall have all the rights,

powers and duties of the Indenture Trustee or Note Administrator under this

Indenture.  The successor Indenture

Trustee or successor Note Administrator shall mail a notice of its succession

to all of the Noteholders, the O/C Holder and each Rating Agency.  The retiring Indenture Trustee 

 

46

 

or retiring Note Administrator shall promptly transfer all property

held by it as Indenture Trustee or Note Administrator to the successor

Indenture Trustee or successor Note Administrator.

 

If a successor Indenture Trustee or a successor Note

Administrator does not take office within sixty (60) days after the retiring

Indenture Trustee or the retiring Note Administrator resigns or is removed, the

retiring Indenture Trustee or retiring Note Administrator, as the case may be,

the Issuer or the Majority Noteholders may petition any court of competent

jurisdiction for the appointment of a successor Indenture Trustee or successor

Note Administrator.

 

If the Indenture Trustee or the Note Administrator

fails to comply with Section 6.11, any Noteholder may petition any court of competent

jurisdiction for the removal of the Indenture Trustee or the Note Administrator

and the appointment of a successor Indenture Trustee or a successor Note

Administrator, as the case may be.

 

Notwithstanding the replacement of the Indenture

Trustee or the Note Administrator pursuant to this Section 6.08, the Issuer’s

obligations under Section 6.07 shall continue for the benefit of the retiring

Indenture Trustee or the retiring Note Administrator.

 

Section 6.09.          Successor

Indenture Trustee or Successor Note Administrator by Merger.

 

If the Indenture Trustee or the Note Administrator

consolidates with, merges or converts into, or transfers all or substantially

all its corporate trust business or assets to, another corporation or banking

association, the resulting, surviving or transferee corporation or banking

association without any further act shall be the successor Indenture Trustee or

the successor Note Administrator, as the case may be; provided that such

corporation or banking association shall be otherwise qualified and eligible

under Section 6.11.  The Indenture

Trustee or Note Administrator, as the case may be, shall provide the Rating

Agencies prior written notice of any such transaction.

 

In case at the time such successor or successors by

merger, conversion, consolidation or transfer 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

Indenture 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 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 Collateral

may at the time be located, the Indenture Trustee shall have the power and may

execute and deliver all instruments to appoint one or more Persons to act as a

co-trustee or co-trustees, or separate trustee or separate trustees, of all or

any part of the Collateral, and to vest in such Person or Persons, in such

capacity and for the benefit of the Noteholders, such title to the Collateral,

or any part hereof, and, subject to the other provisions of this Section 6.10,

such powers, duties, obligations, rights and trusts as the Indenture Trustee

may consider necessary or desirable.  No

 

47

 

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 6.08 hereof.  The

appointment of any co-trustee or separate trustee shall not absolve the

Indenture Trustee of its obligations under this Indenture and the related

Indenture 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 Collateral or any portion thereof in any such

jurisdiction) shall be exercised and performed singly by such separate trustee

or co-trustee, but solely at the direction of the Indenture Trustee;

 

(ii)           no trustee hereunder shall be

personally liable by reason of any act or omission of any other trustee

hereunder; 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 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 Indenture and the conditions of this Section 6.10.  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, 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 and Note Administrator each

shall have a combined capital and surplus of at least $50,000,000 as set forth

in its most recent published annual report of condition and its long-term

unsecured debt shall be rated at least “Baa3” by Moody’s, at least “BBB-” by

Standard & Poor’s and subject to supervision or examination by Federal or

state 

 

48

 

authority.  If such corporation

publishes reports of condition at least annually, pursuant to law or to the

requirements of the aforesaid supervising or examining authority, then for the

purposes of this Section 6.11, 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.  If at any time the Indenture Trustee or the Note Administrator

shall cease to be eligible in accordance with the provisions of this Section

6.11, such entity shall resign immediately in the manner and with the effect hereinafter

specified in this Article VI.

 

Section 6.12.          Tax

Returns.

 

In the event the Trust shall be required to file tax

returns, the Servicer shall prepare or shall cause to be prepared such tax

returns and shall provide such tax returns to the Owner Trustee for signature

at least five (5) days before such tax returns are due to be filed.  The Servicer, in accordance with the terms

of each Indenture Supplement, shall also prepare or shall cause to be prepared

all tax information required by law to be distributed to Noteholders and the

O/C Holder and shall deliver such information to the Owner Trustee, the

Indenture Trustee and the Note Administrator at least five (5) days prior to

the date it is required by law to be distributed to Noteholders and the O/C

Holder.  The Owner Trustee, upon written

request, will furnish the Servicer with all such information known to the Owner

Trustee as may be reasonably requested and required in connection with the

preparation of all tax returns of the Trust, and shall, upon request, execute

such returns.  In no event shall the

Owner Trustee be personally liable for any liabilities, costs or expenses of

the Trust, any Noteholder or the O/C Holder arising under any tax law,

including without limitation, federal, state or local income or excise taxes or

any other tax imposed on or measured by income (or any interest or penalty with

respect thereto arising from a failure to comply therewith).

 

Section 6.13.          Representations

and Covenants of the Indenture Trustee and the Note Administrator.

 

(a)           The

Indenture Trustee represents, warrants and covenants that:

 

(i)            The Indenture Trustee is a national

banking association;

 

(ii)           The Indenture Trustee has full power

and authority to deliver and perform this Indenture and has taken all necessary

action to authorize the execution, delivery and performance by it of this

Indenture and the other Transaction Documents to which it is a party; and

 

(iii)          Each of this Indenture and the other

Transaction Documents to which it is a party has been duly executed and

delivered by the Indenture Trustee and constitutes its legal, valid and binding

obligation in accordance with its terms.

 

(b)           The

Note Administrator represents, warrants and covenants that:

 

(i)            The Note Administrator is a national

association;

 

(ii)           The Note Administrator has full power

and authority to deliver and perform this Indenture and has taken all necessary

action to authorize the execution, delivery and performance by it of this

Indenture and the other Transaction Documents to which it is a party; and

 

49

 

(iii)          Each of this Indenture and the other

Transaction Documents to which it is a party has been duly executed and

delivered by the Note Administrator and constitutes its legal, valid and

binding obligation in accordance with its terms.

 

Section 6.14.          Custody

of the Collateral.

 

The Note Administrator, on behalf of the Indenture

Trustee, shall hold a CD-Rom consisting of a schedule of the Receivables and

the Trust Accounts and all instruments, deposit accounts, negotiable documents,

money, goods, letters of credit, and advices of credit constituting a part

thereof in the State of New York.  The

Note Administrator, on behalf of the Indenture Trustee, shall hold such of the

Collateral as constitutes investment property through a securities

intermediary, which securities intermediary shall agree with the Note

Administrator, on behalf of the Indenture Trustee, that (a) such investment

property shall at all times be credited to a securities account of the

Indenture Trustee, (b) such securities intermediary shall treat the Note

Administrator, on behalf of the Indenture Trustee, as entitled to exercise the

rights that comprise each financial asset credited to such securities account,

(c) all property credited to such securities account shall be treated as

financial assets, (d) such securities intermediary shall comply with

entitlement orders originated by the Note Administrator, on behalf of the

Indenture Trustee, without the further consent of any other person or entity,

(e) such securities intermediary shall not agree with any person or entity

other than the Note Administrator, on behalf of the Indenture Trustee, to

comply with entitlement orders originated by any person or entity other than the

Note Administrator, on behalf of the Indenture Trustee, (f) such securities

accounts and the property credited thereto shall not be subject to any lien,

security interest, right of set-off, or encumbrance in favor of such securities

intermediary or anyone claiming through it (other than the Indenture Trustee),

(g) such agreement shall be governed by the laws of the State of New York,

and (h) such securities intermediary’s jurisdiction for purposes of the UCC

shall be with the State of New York. 

Terms used in this Section 6.14 that are defined in the New York

UCC and not otherwise defined herein shall have the meaning set forth in the

New York UCC. Except as permitted by this Section 6.14, the Indenture Trustee

shall not hold any part of the Collateral through an agent or a nominee.

 

ARTICLE VII

 

NOTEHOLDERS’ LIST AND

REPORTS BY INDENTURE TRUSTEE AND ISSUER

 

Section 7.01.          Issuer

to Furnish Indenture Trustee Names and Addresses of Noteholders.

 

The Issuer will furnish or cause to be furnished to

the Indenture Trustee and the Note Administrator (a) upon each transfer of a

Note, a list, in such form as the Indenture Trustee and the Note Administrator

may reasonably require, of the names, addresses and taxpayer identification

numbers of the Noteholders as they appear on the Note Register as of the most

recent Record Date, and (b) at such other times, as the Indenture Trustee and

the Note Administrator may request in writing, within five (5) Business Days

after receipt by the Issuer of any such request, a list of similar form and

content as of a date not more than ten (10) days prior to the time such list is

furnished; provided, however, that for so long as the Note  Administrator is the Transfer Agent and

Registrar, no such list shall be required to be furnished.

 

50

 

Section 7.02.          Preservation

of Information; Communications to Noteholders.

 

The Note Administrator shall preserve, in as current a

form as is reasonably practicable, the names and addresses of the Noteholders

contained in the most recent list furnished to the Note Administrator as

provided in Section 2.09 or 7.01 and the names, addresses and taxpayer

identification numbers of the Noteholders received by the Note Administrator in

its capacity as Transfer Agent and Registrar. 

The Note Administrator may destroy any list furnished to it as provided

in Section 2.09 or 7.01 upon receipt of a new list so furnished.

 

ARTICLE VIII

 

ALLOCATION AND

APPLICATION OF COLLECTIONS

 

Section 8.01.          Collection

of Money.

 

Except as otherwise expressly provided herein and in

the related Indenture Supplement, the Indenture Trustee and the Note

Administrator 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 and/or the Note Administrator, as the case may be, pursuant

to this Indenture.  The Indenture

Trustee and the Note Administrator shall hold all such money and property

received by it in trust for the Noteholders and shall apply it as provided in

this Indenture.  Except as otherwise

expressly provided in this Indenture, if any default occurs in the making of

any payment or performance under the Transfer and Servicing Agreement or any

other Transaction Document, the Indenture Trustee may, and upon the request of

the Majority Noteholders of an affected Series shall, take such action as may

be appropriate to enforce such payment or performance, including the

institution and prosecution of appropriate Proceedings.  Any such action shall be without prejudice

to any right to claim a Redemption Event or a Default or Event of Default under

this Indenture and to proceed thereafter as provided in Article V hereof.

 

Section 8.02.          Rights

of Noteholders.

 

The Collateral shall secure the obligation of the

Trust to pay to the Holders of the Notes of each Series principal and interest

and other amounts payable pursuant to this Indenture and the related Indenture

Supplement.  Except as specifically set

forth in the Indenture Supplement with respect thereto, the Notes of any Series

or Class shall not have rights to payment from any Series Account or Series

Enhancement allocated solely for the benefit of any other Series or Class.

 

Section 8.03.          Establishment

of Collection Account.

 

The Issuer, for the benefit of the Noteholders and the

holder of any other interest in the Receivables as specified in the related

Indenture Supplement, shall establish and maintain with the Note Administrator

or its nominee in the name of the Indenture Trustee, on behalf of the Trust,

one or more Qualified Accounts (including any subaccount thereof) bearing a

designation clearly indicating that the funds and other property credited

thereto are held for the benefit of the Noteholders (collectively, the “Collection Account”).  The Note Administrator, on behalf of the

Indenture Trustee, shall possess all right, title and interest in all monies,

instruments, investment property, documents, certificates of deposit and other

property credited from time to time to the Collection Account and in all

proceeds, earnings, income, revenue, dividends and distributions thereof for

the benefit of the Noteholders.

 

51

 

The Collection Account shall be under the sole

dominion and control of the Note Administrator for the benefit of the

Noteholders.  Except as expressly

provided in this Indenture and the Transfer and Servicing Agreement, the Issuer

agrees that it shall have no right of setoff or banker’s lien against, and no

right to otherwise deduct from, any funds held in the Collection Account for

any amount owed to it by the Indenture Trustee, the Note Administrator, the

Transferor, any Noteholder or any Series Enhancer.  If, at any time, the Collection Account ceases to be a Qualified

Account, the Note Administrator (or the Issuer on its behalf) shall within ten

(10) Business Days (or such longer period, not to exceed thirty (30) calendar

days, as to which each Rating Agency may consent) establish a new Collection

Account meeting the conditions specified above, transfer any monies, documents,

instruments, investment property, certificates of deposit and other property to

such new Collection Account and from the date such new Collection Account is

established, it shall be the “Collection Account.”

 

Funds on deposit in the Collection Account (other than

investment earnings and amounts deposited pursuant to Section 2.06, 6.01, or

7.01 of the Transfer and Servicing Agreement or Section 11.02 of this

Indenture) shall at the written direction of the Servicer be invested by the

Note Administrator in Eligible Investments selected by the Servicer.  All such Eligible Investments shall be held

by the Note Administrator for the benefit of the Noteholders pursuant to

Section 6.14.  Investments of funds

representing Collections collected during any Monthly Period shall be invested

in Eligible Investments that will mature so that such funds will be available

no later than the close of business on each monthly Transfer Date following

such Monthly Period.  No such Eligible

Investment shall be disposed of prior to its maturity; provided, however,

that the Note Administrator shall sell, liquidate or dispose of any such

Eligible Investment before its maturity, at the written direction of the

Servicer, if, prior to the maturity of such Eligible Investment, a default

occurs in the payment of principal, interest or any other amount with respect

to such Eligible Investment.  Unless

directed by the Servicer, funds deposited in the Collection Account on a

Transfer Date with respect to the immediately succeeding Distribution Date are

not required to be invested overnight. 

On each Distribution Date, all interest and other investment earnings

(net of losses and investment expenses) on funds on deposit in the Collection

Account shall be treated as Finance Charge Collections, except as otherwise

specified in any Indenture Supplement. 

The Note Administrator shall bear no responsibility or liability for any

losses resulting from investment or reinvestment of any funds in accordance

with this Section 8.03 nor for the selection of Eligible Investments in

accordance with the provisions of this Indenture and any Indenture Supplement

(other than Eligible Investments on which the institution acting as Note

Administrator is an obligor).

 

Section 8.04.          Collections;

Daily Release of Collections; Allocations.

 

(a)           The

Servicer will instruct the Note Administrator to apply on behalf of the

Indenture Trustee all funds on deposit in the Collection Account as described

in this Article VIII and in each Indenture Supplement.  Except as otherwise provided below, the

Servicer shall deposit Collections into the Collection Account as promptly as

possible after the Date of Processing of such Collections, but in no event

later than the second Business Day following the Date of Processing.

 

(b)           Provided

that the conditions for the daily release of Collections of Receivables set

forth in the applicable Indenture Supplement are satisfied, the Note

Administrator will release Collections of Receivables to the Transferor

pursuant to and subject to the terms and conditions of such Indenture

Supplement on each day for the purchase of Principal Receivables by the Issuer

up to the amount required to purchase all newly created Principal Receivables

that are not Non-Conforming Terms Change Receivables.

 

52

 

(c)           Collections

of Finance Charge Receivables, Principal Receivables and Defaulted Receivables

will be allocated to each Series and to the Transferor in accordance with this

Article VIII and each Indenture Supplement and amounts so allocated to any

Series will not, except as specified in the related Indenture Supplement, be

available to the Noteholders or the O/C Holder of any other Series.  All other amounts not otherwise allocated to

a Series shall be allocated to the Transferor Amount.  Allocations of the foregoing amounts among the Holders of the

Notes, the O/C Holder and the Transferor, among the Series and among the

Classes in any Series, shall be set forth in the related Indenture Supplement

or Indenture Supplements.

 

(d)           The

Note Administrator, at the direction of the Servicer and on behalf of the

Indenture Trustee, shall within two Business Days of each Deposit Date withdraw

from the Collection Account and distribute to the Transferor all Collections

allocated to the Transferor, except to the extent previously released and paid

by the Issuer to the Transferor for the purchase of Principal Receivables

pursuant to subsection 8.04(b) above and the related Indenture Supplement.

 

Section 8.05.          Shared

Principal Collections.

 

On each Distribution Date, (a) the Note Administrator,

at the written direction of the 

Servicer received no later than the Determination Date and on behalf of

the Indenture Trustee, shall allocate Shared Principal Collections (as

described below) to each Principal Sharing Series, pro rata, in proportion to

the Principal Shortfalls, if any, with respect to each such Series and (b) the

Servicer shall withdraw from the Collection Account and pay to the Issuer an

amount equal to the excess, if any, of (x) the aggregate amount for all

outstanding Series of Collections of Principal Receivables which the related

Indenture Supplements specify are to be treated as “Shared Principal Collections” for such

Distribution Date over (y) the aggregate amount for all outstanding Series

which the related Indenture Supplements specify are “Principal Shortfalls” for such Series

and for such Distribution Date.

 

Section 8.06.          [Reserved].

 

Section 8.07.          Release

of Collateral; Eligible Loan Documents.

 

(a)           The

Indenture Trustee may, and when required by the provisions of this Indenture

shall, execute instruments prepared by and at the expense of the Issuer to

release property from the lien of this Indenture, or convey the Indenture

Trustee’s interest in the same, in a manner and under circum­stances which are

consistent with the provisions of this Indenture.  No party relying upon an instrument executed by the Indenture

Trustee as provided in this Article VIII shall be bound to ascertain the

Indenture Trustee’s authority, inquire into the satisfaction of any conditions

precedent or see to the application of any monies.

 

(b)           In

order to facilitate the servicing of the Receivables by the Servicer, the

Indenture Trustee upon Issuer Order shall authorize the Servicer to execute in

the name and on behalf of the Indenture Trustee instruments of satisfaction or

cancellation, or of partial or full release or discharge, and other comparable

instruments with respect to the Receivables (and the Indenture Trustee shall

execute any such documents on request of the Servicer), subject to the

obligations of the Servicer under the Transfer and Servicing Agreement.

 

(c)           The

Indenture Trustee shall, at such time as there are no Notes outstanding,

release and transfer to the O/C Holder, without recourse, all of the Collateral

that secured the Notes (other than any cash held for the payment of the Notes

pursuant to Section 

 

53

 

4.02).  The Indenture Trustee

shall release property from the lien of this Indenture pursuant to this Section

8.07(c) only upon receipt of an Issuer Order accompanied by an Officer’s

Certificate and an Opinion of Counsel.

 

(d)           Notwithstanding

anything to the contrary in this Indenture, the Transfer and Servicing

Agreement and the Trust Agreement, immediately prior to the release of any

portion of the Collateral or any funds on deposit in the Series Accounts

pursuant to this Indenture after payment in full of the Notes of a Series, the

Indenture Trustee shall remit to the O/C Holder for its own account any funds

with respect to such Series that, upon such release, would otherwise be

remitted to the Issuer.

 

Section 8.08.          Opinion

of Counsel.

 

The Indenture Trustee shall receive at least seven (7)

days notice when requested by the Issuer to take any action pursuant to

subsection 8.07(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 (which shall be obtained at the expense of the Issuer), in form and

substance reasonably satisfactory to the Indenture Trustee, stating the legal

effect of any such action, outlining the steps required to complete the same,

and concluding that all conditions precedent to the taking of such action have

been complied with and such action will not materially and adversely impair the

security for the Notes or any other interests in the Receivables specified in

the related Indenture Supplement or the rights of the Noteholders or holders of

such other interests 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 Collateral. The 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

 

DISTRIBUTIONS AND REPORTS

TO NOTEHOLDERS

 

Distributions shall be made to, and reports shall be

provided to, Noteholders as set forth in the applicable Indenture

Supplement.  The identity of the

Noteholders with respect to distributions and reports shall be determined

according to the immediately preceding Record Date.

 

ARTICLE X

 

SUPPLEMENTAL INDENTURES

 

Section 10.01.        Supplemental Indentures Without

Consent of Noteholders.

 

(a)           Without

the consent of the Holders of any Notes, but upon satisfaction of the Rating

Agency Condition, the Issuer, the Note Administrator and the Indenture Trustee,

when authorized by an Issuer Order, at any time and from time to time, may

enter into one or more indentures supplemental hereto for any of the following

purposes:

 

(i)            to correct or enhance 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 

 

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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 Section 3.11 hereof, of another Person to the Issuer, and the

assumption by any such successor of the covenants of the Issuer contained

herein, in the Notes and in the O/C Certificate;

 

(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 any supplemental indenture that may be

inconsistent with any other provision herein or in any supplemental indenture

or to make any other provisions with respect to matters or questions arising

under this Indenture or in any supplemental indenture; provided that

such action shall not adversely affect the interests of the Holders of any

Series or Class of Outstanding Notes;

 

(vi)          to evidence and provide for the

acceptance of the appointment hereunder by a successor indenture trustee or

successor note administrator 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 indenture trustee,

pursuant to the requirements of Article VI;

 

(vii)         to provide for the issuance of one or

more new Series of Notes, in accordance with the provisions of Section 2.11

hereof;

 

(viii)        to provide for the termination of any

interest rate swap agreement or other form of credit enhancement in accordance

with the provisions of the related Indenture Supplement; or

 

(ix)           to provide for the listing of one or

more Classes of any Series of Notes on any securities exchange.

 

The Indenture Trustee and the Note Administrator are each hereby

authorized to join in the execution of any such supplemental indenture and to

make any further appropriate agreements and stipulations that may be therein

contained.

 

(b)           The

Issuer, the Note Administrator and the Indenture Trustee, when authorized by an

Issuer Order, may, also without the consent of any Noteholders of any Series

then Outstanding but upon satisfaction of the Rating Agency Condition with

respect to the Notes of all Series, enter into an indenture or indentures

supplemental hereto for the purpose of adding any provisions to, or changing in

any manner or eliminating any of the provisions of, this Indenture or of

modifying in any manner the rights of the Holders of the Notes under this

Indenture; provided, however  that (i) the O/C Holder shall have

delivered to the Indenture Trustee and the Note Administrator an Officer’s

Certificate, dated the date of any such action, stating that the O/C Holder

reasonably believes that such action will not have an Adverse Effect and

(ii) a Tax Opinion shall have been delivered to each Rating Agency.  Additionally, notwithstanding the preceding

sentence, the Issuer, the Note Administrator and the Indenture 

 

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Trustee, when authorized by an Issuer Order, may, without the consent

of any Noteholders of any Series then Outstanding or the Series Enhancers for

any Series, enter into an indenture or indentures supplemental hereto to add,

modify or eliminate such provisions as may be necessary or advisable in order

to enable all or a portion of the Trust (i) to qualify as, and to permit an

election to be made to cause the Trust to be treated as, a “financial asset

securitization investment trust” as described in the provisions of Section 860L

of the Code, and (ii) to avoid the imposition of state or local income or

franchise taxes imposed on the Trust’s property or its income; provided,

however, that (i) the O/C Holder delivers to the Indenture Trustee, the

Note Administrator and the Owner Trustee an Officer’s Certificate to the effect

that the proposed amendments meet the requirements set forth in this subsection

10.01(b), (ii) the Rating Agency Condition will have been satisfied and (iii)

such amendment does not affect the rights, duties or obligations of the

Indenture Trustee, the Note Administrator or the Owner Trustee hereunder.

 

Notes held by the Transferor or any of its Affiliates

or agents (to the extent actually known to be held by a Responsible Officer of

the Indenture Trustee) will not be considered in the determination of (i)

whether the requisite percentage of Notes Outstanding has been obtained in

support of any amendment under this Section 10.01 and (ii) the amount of Notes

Outstanding in connection with the calculation of such requisite percentage.

 

Section 10.02.        Supplemental Indentures with Consent

of Noteholders.

 

The Issuer, the Note Administrator and the Indenture

Trustee, when authorized by an Issuer Order, also may, upon satisfaction of the

Rating Agency Condition and with the consent of the Majority Noteholders of

each adversely affected Series of Notes, by Act of such Holders delivered to

the Issuer, the Note Administrator and the Indenture Trustee, enter into an

indenture or indentures supplemental hereto for the purpose of adding any

provisions to, changing in any manner or eliminating any of the provisions of this

Indenture or of modifying in any manner the rights of such Noteholders under

this Indenture; provided, however that no such supplemental

indenture shall, without the consent of the Holder of each outstanding Note

adversely affected thereby:

 

(a)           change

the due date of any installment of principal of or interest on any Note, or

reduce the principal amount thereof, the interest rate specified thereon or the

redemption price with respect thereto or change any place of payment where, or

the coin or currency in which, any Note or any interest thereon is payable;

 

(b)           impair

the right to institute suit for the enforcement of the provisions of this

Indenture requiring the application of funds available therefor, as provided in

Article V, to the payment of any such amount due on the Notes on or after the

respective due dates thereof (or, in the case of redemption, on or after the

Redemption Date);

 

(c)           reduce

the percentage of the Outstanding Amount of the Notes of any Series outstanding

the consent of the Holders of which is required for any such supplemental

indenture, or the consent of the Holders of which is required for any waiver of

compliance with certain provisions of this Indenture or certain defaults

hereunder and their consequences as provided for in this Indenture;

 

(d)           reduce

the percentage of the Outstanding Amount of the Notes of any Series outstanding

the consent of the Holders of which is required to direct the Indenture Trustee

to sell or liquidate the Collateral if the proceeds of such sale would be

insufficient to pay the principal amount and accrued but unpaid interest on the

outstanding Notes of such Series;

 

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(e)           decrease

the percentage of the Outstanding Amount of the Notes of any Series required to

amend the sections of this Indenture which specify the applicable percentage of

the Outstanding Amount of the Notes of such Series necessary to amend the

Indenture or any Transaction Documents which require such consent;

 

(f)            modify

or alter the provisions of this Indenture prohibiting the voting of Notes held

by the Trust, any other obligor on the Notes, an Accounts Owner or any

affiliate thereof; or

 

(g)           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 Collateral for any Notes or, except

as otherwise permitted or contemplated herein, terminate the lien of this

Indenture on any such Collateral at any time subject hereto or deprive the

Holder of any Note or the holder of any other interest in the Receivables as

specified in the related Indenture Supplement of the security provided by the

Lien of this Indenture.

 

Notes held by the Transferor or any of its Affiliates

or agents (to the extent actually known to be held by a Responsible Officer of

the Indenture Trustee) will not be considered in the determination of (i)

whether the requisite percentage of Notes Outstanding has been obtained in

support of any amendment under this Section 10.02 and (ii) the amount of Notes

Outstanding in connection with the calculation of such requisite percentage.

 

It shall not be necessary for any Act of Noteholders

under this Section 10.02 to approve the particular form of any proposed

supplemental indenture, but it shall be sufficient if such Act shall approve

the substance thereof.

 

Promptly after the execution by the Issuer, the Note

Administrator and the Indenture Trustee of any supplemental indenture pursuant

to this Section 10.02, the Note Administrator shall mail to the Holders of the

Notes to which such supplemental indenture relates written notice setting forth

in general terms the substance of such supplemental indenture.  Any failure of the Note Administrator to

mail such notice, or any defect therein, shall not, however, in any way impair

or affect the validity of any such supplemental indenture.

 

Section 10.03.        Execution of Supplemental Indentures.

 

In executing, or permitting the additional trusts

created by, any supplemental indenture permitted by this Article X or the

modification thereby of the trusts created by this Indenture, the Indenture

Trustee and the Note Administrator shall be entitled to receive, and subject to

Sections 6.01 and 6.02, shall be fully protected in relying upon, an Opinion of

Counsel stating that the execution of such supplemental indenture is authorized

or permitted by this Indenture.  The

Indenture Trustee, the Note Administrator or Owner Trustee may, but shall not

be obligated to, enter into any such supplemental indenture that affects the

Indenture Trustee’s, the Note Administrator’s or Owner Trustee’s (as such or in

its individual capacity) own rights, duties, liabilities, benefits,

protections, privileges or immunities under this Indenture or otherwise.

 

Section 10.04.        Effect of Supplemental Indenture.

 

Upon the execution of any supplemental indenture under

this Article X, this Indenture shall be modified in accordance therewith, and

such supplemental indenture shall form a part of this Indenture for all

purposes, and every Holder of Notes theretofore or thereafter authenticated and

delivered hereunder shall be bound thereby.

 

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Section 10.05.        Reference in Notes to Supplemental

Indentures.

 

Notes authenticated and delivered after the execution

of any supplemental indenture pursuant to this Article X may, and if required

by the Note Administrator shall, bear a notation in form approved by the Note

Administrator as to any matter provided for in such supplemental

indenture.  If the Issuer shall so

determine, new Notes so modified as to conform to any such supplemental

indenture may be prepared and executed by the Issuer and authenticated and

delivered by the Note Administrator in exchange for the Outstanding Notes.

 

ARTICLE XI

 

TERMINATION

 

Section 11.01.        Termination of Trust.

 

The Trust and the respective obligations and

responsibilities of the Indenture Trustee and the Note Administrator created

hereby (other than the obligation of the Note Administrator to make payments to

Noteholders as hereinafter set forth) shall terminate, except with respect to

the duties described in subsection 11.02(b), as provided in the Trust

Agreement.

 

Section 11.02.        Final Distribution.

 

(a)           The

Servicer shall give the Indenture Trustee and the Note Administrator at least

thirty (30) days prior notice of the Distribution Date on which the Noteholders

of any Series or Class or the O/C Holder may surrender their Notes or O/C

Certificate, as applicable, for payment of the final distribution on and

cancellation of such Notes (or, in the event of a final distribution resulting

from the application of Section 2.06, 6.01 or 7.01 of the Transfer and

Servicing Agreement, notice of such Distribution Date promptly after the

Servicer has determined that a final distribution will occur, if such determination

is made less than thirty (30) days prior to such Distribution Date).  Such notice shall be accompanied by an

Officer’s Certificate setting forth the information specified in Section 3.05

of the Transfer and Servicing Agreement covering the period during the

then-current calendar year through the date of such notice.  Not later than the fifth day of the month in

which the final distribution in respect of such Series or Class is payable to

Noteholders, the Note Administrator shall provide notice to Noteholders of such

Series or Class specifying (i) the date upon which final payment of such Series

or Class will be made upon presentation and surrender of Notes of such Series

or 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.  The Note Administrator shall give such

notice to the Transfer Agent and Registrar, the Indenture Trustee and the

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

 

(b)           Notwithstanding

a final distribution to the Noteholders of any Series or Class (or the

termination of the Trust), except as otherwise provided in this paragraph, all

funds then on deposit in the Collection Account and any Series Account

allocated to such Noteholders shall continue to be held in trust for the

benefit of such Noteholders and the Paying Agent or the Note Administrator

shall remit such funds to such Noteholders upon surrender of their Notes, if

certificated.  In the event that all

such Noteholders shall not surrender their Notes for cancellation within six (6)

months after the date specified in the notice from the Indenture Trustee

described in paragraph (a), the Note Administrator shall give a second notice

to the remaining such 

 

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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 Note Administrator may take appropriate

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

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

thereof shall be paid out of the funds in the Collection Account or any Series

Account held for the benefit of such Noteholders.  The Note Administrator and the Paying Agent shall pay to the

Issuer any monies held by them for the payment of principal or interest that

remains unclaimed for two (2) years. 

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

to the Issuer for payment as general creditors unless an applicable abandoned

property law designates another Person.

 

Section 11.03.        Termination Distributions.

 

Upon the termination of the Trust pursuant to the

terms of the Trust Agreement, the Indenture Trustee shall assign and convey to

the Issuer or any of its designees, without recourse, representation or

warranty, all right, title and interest of the Trust in the Receivables,

whether then existing or thereafter created, all Interchange and Recoveries

related thereto, all monies due or to become due and all amounts received or

receivable with respect thereto (including all monies then held in the

Collection Account or any Series Account) and all proceeds thereof, except for

amounts held by the Indenture Trustee pursuant to subsection 11.02(b).  The Indenture Trustee shall execute and

deliver such instruments of transfer and assignment, in each case without

recourse, as shall be prepared by and reasonably requested by the Issuer to

vest in the Issuer or any of its designees all right, title and interest which

the Indenture Trustee had in the Collateral and such other property.

 

ARTICLE XII

 

MISCELLANEOUS

 

Section 12.01.        Compliance Certificates and Opinions

etc.

 

(a)           Upon

any application or request by the Issuer to the Indenture Trustee  or Note Administrator to take any action

under any provision of this Indenture, the Issuer shall furnish to the

Indenture Trustee and Note Administrator (i) an Officer’s Certificate

stating that all conditions precedent, if any, provided for in this Indenture

relating to the proposed action have been complied with and (ii) an

Opinion of Counsel stating that in the opinion of such counsel all such

conditions precedent, if any, have been complied with, except that, in the case

of any such application or request as to which the furnishing of such documents

is specifically required by any provision of this Indenture, no additional

certificate or opinion need be furnished.

 

Every certificate or opinion with respect to

compliance with a condition or covenant provided for in this Indenture shall

include:

 

(i)            a statement that each signatory of

such certificate or opinion has read or has caused to be read such covenant or

condition and the definitions herein relating thereto;

 

(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;

 

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(iii)          a statement that, in the opinion of

each such signatory, such signatory has made such examination or investigation

as is necessary to enable such signatory to express an informed opinion as to

whether or not such covenant or condition has been complied with; and

 

(iv)          a statement as to whether, in the

opinion of each such signatory, such condition or covenant has been complied

with.

 

(b)           (i)  Prior to the deposit of any Collateral or

other property or securities with the Indenture Trustee that is to be made the

basis for the release of any property or securities subject to the lien of this

Indenture, the Issuer shall, in addition to any obligation imposed in

subsection 12.01(a) or elsewhere in this Indenture, furnish to the Indenture

Trustee and Note Administrator an Officer’s Certificate certifying or stating

the opinion of each person signing such certificate as to the fair value

(within ninety (90) days of such deposit) to the Issuer of the Collateral or

other property or securities to be so deposited.

 

(ii)           [Reserved].

 

(iii)          Other than with respect to the release

of any Defaulted Receivables and Receivables in Removed Receivables, whenever

any property or securities are to be released from the lien of this Indenture,

the Issuer shall also furnish to the Indenture Trustee  and the Note Administrator an Officer’s

Certificate certifying or stating the opinion of each Person signing such

certificate as to the fair value (within ninety (90) days of such release) of

the property or securities proposed to be released and stating that in the

opinion of such Person the proposed release will not impair the security under

this Indenture in contravention of the provisions hereof.

 

(iv)          [Reserved].

 

(v)           Notwithstanding any other provision

of this Section 12.01, the Issuer may (A) collect, liquidate, sell or otherwise

dispose of Receivables as and to the extent permitted or required by the

Transaction Documents and (B) make cash payments out of the Series Accounts as

and to the extent permitted or required by the Transaction Documents.

 

Section 12.02.        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 such

officer’s certificate or opinion is based are erroneous.  Any such certificate of an Authorized

Officer or Opinion of Counsel may be based, insofar as it relates to factual

matters, upon a certificate or opinion of, or representations by, an officer or

officers of the Servicer, an Accounts Owner, the 

 

60

 

O/C Holder, the Issuer or the Administrator, stating that the

information with respect to such factual matters is in the possession of the

Servicer, an Accounts Owner, the O/C Holder, the Issuer or the Administrator,

unless such an Authorized Officer or Counsel knows, or in the exercise of

reasonable care should know, that the certificate or opinion or representations

with respect to such matters are erroneous.

 

Where any Person is required to make, give or execute

two (2) or more applications, requests, consents, certificates, statements,

opinions or other instruments under this Indenture, they may, but need not, be

consolidated and form one instrument.

 

Whenever in this Indenture, in connection with any

application or certificate or report to the Indenture Trustee and the Note Administrator,

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 or the Note

Administrator’s right to rely upon the truth and accuracy of any statement or

opinion contained in any such document as provided in Article VI.

 

Section 12.03.        Acts of Noteholders.

 

(a)           Any

request, demand, authorization, direction, notice, consent, waiver or other

action provided by this Indenture to be given or taken by Noteholders may be

embodied in and evidenced by one or more instruments of substantially similar

tenor signed by such Noteholders in person or by agent duly appointed in

writing and satisfying any requisite percentages as to minimum number or dollar

value of outstanding principal amount represented by such Noteholders; 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 conclusive in favor of the Indenture

Trustee and the Issuer, if made in the manner provided in this Section 12.03.

 

(b)           The

fact and date of the execution by any Person of any such instrument or writing

may be proved in any manner which the Indenture Trustee deems sufficient.

 

(c)           The

ownership of Notes shall be proved by the Note Register.

 

(d)           Any

request, demand, authorization, direction, notice, consent, waiver or other

action by the Holder of any Notes shall bind the Holder (and any transferee

thereof) of every Note issued upon the registration thereof 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.

 

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Section 12.04.        Notices, Etc. to Indenture Trustee

and Issuer.

 

Any request, demand, authorization, direction, notice,

consent, waiver or Act of Noteholders or other documents provided or permitted

by the Agreement 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 made, given, furnished or filed in writing to a

Responsible Officer, by facsimile transmission or by other means acceptable to

the Indenture Trustee to or with the Indenture Trustee at its Corporate Trust

Office;

 

(b)           the

Issuer by the Indenture Trustee or by any Noteholder shall be sufficient for

every purpose hereunder if in writing and mailed, first-class postage prepaid,

to the Issuer addressed to it at Wilmington Trust Company, Rodney Square North,

1100 North Market Street, Wilmington, Delaware 19890-0001, Attention:  Corporate Trust Administration, or at any

other address previously furnished in writing to the Indenture Trustee by the

Issuer.  A copy of each notice to the

Issuer shall be sent in writing and mailed, first-class postage prepaid, to the

Administrator at 245 Perimeter Center Parkway, Suite 600, Atlanta, Georgia

30346; or

 

(c)           the

Note Administrator by any Noteholder or by the Issuer shall be sufficient for

every purpose hereunder if made, given, furnished or filed in writing to a

Responsible Officer, by facsimile transmission or by other means acceptable to

the Note Administrator to or with the Note Administrator at its Corporate Trust

Office.

 

Section 12.05.        Notices to Noteholders; Waiver.

 

Where the Indenture provides for notice to Noteholders

of any event, such notice shall be sufficiently given (unless otherwise herein

expressly provided) if in writing and mailed by registered or certified mail or

first class postage prepaid or national overnight courier service to each Noteholder

affected by such event, at its 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 which is mailed in the manner herein provided shall

conclusively be presumed to have been duly given.

 

Where this Indenture provides for notice in any

manner, such notice may be waived in writing by any Person entitled to receive

such notice, either before or after the event, and such waiver shall be the

equivalent of such notice.  Waivers of

notice by Noteholders shall be filed with the Indenture Trustee but such filing

shall not be a condition precedent to the validity of any action taken in

reliance upon such waiver.

 

In the event that, by reason of the suspension of

regular mail service as a result of a strike, work stoppage or similar

activity, it shall be impractical to mail notice of any event to Noteholders

when such notice is required to be given pursuant to any provision of this

Indenture, then any manner of giving such notice as shall be satisfactory to

the Indenture Trustee shall be deemed to be a sufficient giving of such notice.

 

Where this Indenture provides for notice to any Rating

Agency, 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.

 

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Section 12.06.        Alternate Payment and Notice

Provisions.

 

Notwithstanding any provision of this Indenture or any

of the Notes to the contrary, the Issuer, with the prior written consent of the

Indenture Trustee, which consent may be withheld in the Indenture Trustee’s

sole discretion, 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 Paying Agent

to such Holder, that is different from the methods provided for in this

Indenture for such payments or notices. 

The Issuer will furnish to the Indenture Trustee a copy of each such

agreement and the Indenture Trustee will cause payments to be made and notices

to be given in accordance with such agreements.

 

Section 12.07.        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 12.08.        Successors and Assigns.

 

All covenants and agreements in this Indenture by the

Issuer and the Indenture Trustee shall bind its successors and assigns, whether

so expressed or not.

 

Section 12.09.        Severability.

 

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 12.10.        Benefits of Indenture.

 

Nothing in this Indenture or in the Notes, express or

implied, shall give to any Person, other than the parties hereto and their

successors hereunder, the Noteholders, the Servicer, the Owner Trustee, the O/C

Holder and the Transferor, any benefit.

 

Section 12.11.        Legal Holidays.

 

In any case where the date on which any payment is due

shall not be a Business Day, then (notwithstanding any other provision of the

Notes or this Indenture) payment need not be made on such date, but may be made

on the next succeeding Business Day with the same force and effect as if made

on the date on which nominally due, and no interest shall accrue for the period

from and after any such nominal date.

 

Section 12.12.        GOVERNING

LAW.

 

THIS

INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW

YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS,

RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE

WITH SUCH LAWS.

 

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Section 12.13.        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 12.14.        Trust Obligation.

 

No recourse may be taken, directly or indirectly, with

respect to the obligations of the Issuer, the Owner Trustee, the Certificate

Trustee, the Certificate Administrator, the Note Administrator or the Indenture

Trustee on the Notes or any O/C Certificate or under this Indenture or any

certificate or other writing delivered in connection herewith or therewith,

against (i) the Indenture Trustee, the Certificate Trustee, the Certificate

Administrator, the Note Administrator or the Owner Trustee in its individual

capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any

partner, owner, beneficiary, agent, officer, director, employee or agent of the

Indenture Trustee, the Certificate Trustee, the Certificate Administrator, the

Note Administrator or the Owner Trustee in its individual capacity, any holder

of a beneficial interest in the Issuer, the Owner Trustee, the Certificate

Trustee, the Certificate Administrator, the Note Administrator or the Indenture

Trustee or of any successor or assign of the Indenture Trustee, the Certificate

Trustee, the Certificate Administrator, the Note Administrator or the Owner

Trustee in its individual capacity, except as any such Person may have

expressly agreed (it being understood that the Indenture Trustee, the

Certificate Trustee, the Certificate Administrator, the Note Administrator and

the Owner Trustee have no such obligations in their individual capacity) and

except that any such partner, owner or beneficiary shall be fully liable, to

the extent provided by applicable law, for any unpaid consideration for stock,

unpaid capital contribution or failure to pay any installment or call owing to

such entity.  For all purposes of this

Indenture, in the performance of any duties or obligations hereunder, the Owner

Trustee (as such or in its individual capacity) shall be subject to, and

entitled to the benefits of, the terms and provisions of the Trust Agreement.

 

Section 12.15.        No Petition.

 

The Indenture Trustee and the Note Administrator, by

entering into this Indenture, and each Noteholder, by accepting a Note, hereby

covenant and agree that they will not at any time institute against the Issuer,

or join in instituting against the Issuer or the Transferor, any bankruptcy,

reorganization, arrangement, insolvency or liquidation proceedings, or other

proceedings under any United States federal or state bankruptcy or similar law.

 

Section 12.16.        Limitation of Liability.  Notwithstanding any other provision herein

or elsewhere, this Indenture has been executed and delivered by Wilmington

Trust Company, not in its individual capacity, but solely in its capacity as

Owner Trustee of the Trust.  In no event

shall Wilmington Trust Company in its individual capacity have any liability in

respect of the representations, warranties, or obligations of the Trust

hereunder or under any other document, as to all of which recourse shall be had

solely to the assets of the Trust, and for all purposes of this Agreement and

each other document, the Owner Trustee (as such or in its individual capacity)

shall be subject to, and entitled to the benefits of, the terms and provisions

of the Trust Agreement.

 

Section 12.17.      Certain Commercial Law Representations

and Warranties.  The Issuer hereby

makes the following representations and warranties.  Such representations and warranties shall survive until the

termination of this Indenture.  Such

representations and 

 

64

 

warranties speak of the date that a security interest in the Collateral

(as defined below) is granted to the Indenture Trustee but shall not be waived

by any of the parties to this Indenture unless the Rating Agency Condition is

satisfied with respect to such waiver.

 

(a)           This Indenture creates a valid and

continuing security interest (as defined in the applicable UCC) in favor of the

Indenture Trustee in the Receivables described in the Granting Clause of this

Indenture (the “Collateral”),

which security interest is prior to all other Liens, and is enforceable as such

against creditors of and purchasers from the Issuer.

 

(b)           The Collateral constitutes an

“account” within the meaning of the applicable UCC.

 

(c)           At the time of its grant of any security

interest in the Collateral pursuant to this Indenture, the Issuer owned and had

good and marketable title to the Collateral free and clear of any lien, claim

or encumbrance of any Person other than the Indenture Trustee.

 

(d)           The Issuer has caused or will have

caused, within ten (10) days of the initial execution of this Indenture, the

filing of all appropriate financing statements in the proper filing office in

the appropriate jurisdictions under applicable law in order to perfect the

security interest in the Collateral granted to the Indenture Trustee pursuant

to this Indenture.

 

(e)           The Issuer has registered the

Indenture Trustee as the registered owner of the Collateral.

 

(f)            Other than the security interest

granted to the Indenture Trustee pursuant to this Indenture, the Issuer has not

pledged, assigned, sold, granted a security interest in, or otherwise conveyed

the Collateral.  The Issuer has not

authorized the filing of and is not aware of any financing statements against

the Issuer that include a description of the Collateral other than any

financing statement relating to the security interest granted to the Indenture

Trustee pursuant to this Indenture or that has been terminated.  The Issuer is not aware of any judgment or

tax lien filings against the Issuer.

 

65

 

IN WITNESS WHEREOF, the Issuer and the Indenture

Trustee have caused this Indenture to be duly executed by their respective

officers thereunto duly authorized and attested, all as of the day and year

first above written.

 

 

	

   

  	

  CSGQ TRUST,

  
	

   

  	

  as Issuer

  
	

   

  	

   

  
	

   

  	

  By:  Wilmington Trust Company,

  not in its individual capacity

  but solely as Owner Trustee

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

  U.S. BANK NATIONAL ASSOCIATION,

  
	

   

  	

  as Indenture Trustee

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

  CITIBANK, N.A.,

  
	

   

  	

  as Note Administrator

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  

 

[Signature Page toed

Master Indenture]

 

66

 

	

  Acknowledged and Accepted:

  
	

   

  
	

  COMPUCREDIT CORPORATION,

  
	

  as Servicer

  
	

   

  
	

  By:

  	

   

  	

   

  
	

  Name:

  
	

  Title:

  
	

   

  
	

  CSG FUNDING, LLC,

  
	

  as O/C Holder

  
	

   

  
	

  By:

  	

   

  	

   

  
	

  Name:

  
	

  Title:

  
	

   

  
	

  PACCT, LLC,

  
	

  as Transferor

  
	

   

  
	

  By:

  	

   

  	

   

  
	

  Name:

  
	

  Title:

  
					

 

[Signature Page to Master

Indenture]

 

67

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