Document:

RECEIVABLES PURCHASE AGREEMENT

 EXHIBIT 10.3 – RECEIVABLES PURCHASE AGREEMENT 
  
 [EXECUTION COPY] 
  
 CARMAX BUSINESS SERVICES, LLC, 
 as Seller, 
  
 and 
  
 CARMAX AUTO FUNDING LLC, 
 as Purchaser 
  

  
 RECEIVABLES PURCHASE AGREEMENT 
 Dated as of December 1, 2005 
  

  
  

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page

	 	 	ARTICLE I	  	 
	 	 	DEFINITIONS	  	 
			
	 SECTION 1.1
	 	Definitions	  	1
	 SECTION 1.2
	 	Other Definitional Provisions	  	4
			
	 	 	ARTICLE II	  	 
	 	 	CONVEYANCE OF RECEIVABLES	  	 
			
	 SECTION 2.1
	 	Sale and Conveyance of Receivables	  	4
	 SECTION 2.2
	 	Receivables Purchase Price; Payments on the Receivables	  	5
	 SECTION 2.3
	 	Transfer of Receivables	  	5
	 SECTION 2.4
	 	Examination of Receivable Files	  	6
	 SECTION 2.5
	 	Expenses	  	6
			
	 	 	ARTICLE III	  	 
	 	 	REPRESENTATIONS AND WARRANTIES	  	 
			
	 SECTION 3.1
	 	Representations and Warranties of the Purchaser	  	6
	 SECTION 3.2
	 	Representations and Warranties of the Seller	  	7
			
	 	 	ARTICLE IV	  	 
	 	 	CONDITIONS	  	 
			
	 SECTION 4.1
	 	Conditions to Obligation of the Purchaser	  	13
	 SECTION 4.2
	 	Conditions to Obligation of the Seller	  	14
			
	 	 	ARTICLE V	  	 
	 	 	COVENANTS OF THE SELLER	  	 
			
	 SECTION 5.1
	 	Protection of Right, Title and Interest in, to and Under the Receivables	  	15
	 SECTION 5.2
	 	Security Interests	  	16
	 SECTION 5.3
	 	Delivery of Payments	  	16
	 SECTION 5.4
	 	No Impairment	  	16
	 SECTION 5.5
	 	Costs and Expenses	  	17
	 SECTION 5.6
	 	Hold Harmless	  	17
			
	 	 	ARTICLE VI	  	 
	 	 	MISCELLANEOUS PROVISIONS	  	 
			
	 SECTION 6.1
	 	Amendment	  	17
	 SECTION 6.2
	 	Termination	  	18
	 SECTION 6.3
	 	Governing Law	  	18
	 SECTION 6.4
	 	Notices	  	18
	 SECTION 6.5
	 	Severability of Provisions	  	18

  

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	 	 	 	  	Page

	 SECTION 6.6
	 	Further Assurances	  	18
	 SECTION 6.7
	 	No Waiver; Cumulative Remedies	  	18
	 SECTION 6.8
	 	Counterparts	  	19
	 SECTION 6.9
	 	Third-Party Beneficiaries	  	19
	 SECTION 6.10
	 	Headings and Table of Contents	  	19
	 SECTION 6.11
	 	Representations, Warranties and Agreements to Survive	  	19
	 SECTION 6.12
	 	No Proceedings	  	19
	 SECTION 6.13
	 	Accountant’s Letters	  	19
	 SECTION 6.14
	 	Obligations of Purchaser	  	19
			
	 	 	SCHEDULES	  	 
			
	 SCHEDULE A
	 	Receivables Schedule	  	 
			
	 	 	EXHIBITS	  	 
			
	 EXHIBIT A
	 	Bill of Sale and Assignment	  	 
	 EXHIBIT B
	 	Form of Retail Installment Sale Contract	  	 

  

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 RECEIVABLES PURCHASE AGREEMENT 
  
 This Receivables Purchase Agreement, dated as of December 1, 2005, is between CarMax Business Services, LLC, a Delaware
limited liability company (“CarMax”), as seller (the “Seller”), and CarMax Auto Funding LLC, a Delaware limited liability company (“CarMax Funding”), as purchaser (the “Purchaser”).

  
 WHEREAS, in the regular course of business, CarMax Auto
Superstores, Inc., a Virginia corporation (“CarMax Auto”), and certain affiliates of CarMax Auto originate motor vehicle retail installment sale contracts secured by new and used motor vehicles; 
  
 WHEREAS, the Seller intends to convey all of its right, title and interest in
and to contracts having an aggregate outstanding principal balance of $450,000,013.70 as of the close of business on November 30, 2005 (the “Receivables”) to the Purchaser and, concurrently with its purchase of the Receivables,
the Purchaser intends to convey all of its right, title and interest in and to the Receivables to CarMax Auto Owner Trust 2005-3, as issuer (the “Issuer”), pursuant to a Sale and Servicing Agreement, dated as of December 1,
2005 (the “Sale and Servicing Agreement”), among the Issuer, CarMax Funding, as depositor, and CarMax, as servicer; and 
  
 WHEREAS, the Seller and the Purchaser wish to set forth the terms pursuant to which the Receivables are to be sold by the Seller to the Purchaser;

  
 NOW, THEREFORE, in consideration of the mutual terms and
covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 ARTICLE I 
 DEFINITIONS 
  
 SECTION 1.1 Definitions. Whenever
used in this Agreement, the following words and phrases shall have the following meanings: 
  
 “Agreement” shall mean this Receivables Purchase Agreement and all amendments hereof and supplements hereto. 
  
 “Base Prospectus” shall mean the prospectus, dated December 5, 2005, of the Purchaser relating to the public offering by the
Purchaser of the Notes. 
  
 “Bill of Sale” shall
mean the Bill of Sale and Assignment, substantially in the form attached as Exhibit A. 
  
 “CarMax” shall mean CarMax Business Services, LLC, a Delaware limited liability company, and its successors. 
  
 “CarMax Auto” shall mean CarMax Auto Superstores, Inc., a Virginia corporation, and its successors. 

 “CarMax Funding” shall mean CarMax Auto Funding LLC, a Delaware limited liability
company, and its successors. 
  
 “CarMax Funding
II” shall mean CarMax Funding II, LLC, a Delaware limited liability company, and its successors. 
  
 “Class A Notes” shall mean the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes
issued pursuant to the Indenture. 
  
 “Class B
Notes” shall mean the Class B Notes issued pursuant to the Indenture. 
  
 “Class C Notes” shall mean the Class C Notes issued pursuant to the Indenture. 
  
 “Closing Date” shall mean December 14, 2005. 
  
 “Cutoff Date” shall mean November 30, 2005. 
  
 “Delaware Trustee” shall mean The Bank of New York
(Delaware), a Delaware banking corporation, as Delaware trustee under the Trust Agreement, and its successors in such capacity. 
  
 “Depositor” shall mean CarMax Funding, in its capacity as Depositor under the Trust Agreement, and its successors in such capacity.

  
 “Indenture” shall mean the Indenture, dated
as of December 1, 2005, between the Issuer and the Indenture Trustee, as amended, supplemented or otherwise modified and in effect from time to time. 
  
 “Indenture Trustee” shall mean Wells Fargo Bank, National Association, a national banking association, as indenture trustee under the
Indenture, and its successors in such capacity. 
  
 “Initial Reserve Account Deposit” shall mean $2,250,000. 
  
 “Issuer” shall mean CarMax Auto Owner Trust 2005-3, a Delaware statutory trust, and its successors. 
  
 “Noteholders” shall mean the registered holders of the Notes. 
  
 “Notes” shall mean the Class A Notes, the Class B Notes and the Class C Notes. 
  
 “Owner Trustee” shall mean The Bank of New York, a New York
banking corporation, as owner trustee under the Trust Agreement, and its successors in such capacity. 
  
 “Prospectus Supplement” shall mean the final prospectus supplement, dated December 6, 2005, of the Purchaser relating to the public
offering by the Purchaser of the Notes. 
  
 “Prospectus” shall mean the Prospectus Supplement and the Base Prospectus. 
  

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 “Purchaser” shall mean CarMax Funding, in its capacity as purchaser of the Receivables
under this Agreement, and its successors in such capacity. 
  
 “Receivables” shall mean the motor vehicle retail installment sale contracts sold by the Seller to the Purchaser pursuant to this Agreement and identified on the Receivables Schedule. 
  
 “Receivables Purchase Price” shall mean $463,500,000.

  
 “Receivables Schedule” shall mean the
schedule of receivables attached as Schedule A, as amended, supplemented or otherwise modified and in effect from time to time. 
  
 “Representative” shall mean Wachovia Capital Markets, LLC, a Delaware limited liability company, as representative of the Underwriters.

  
 “Sale and Servicing Agreement” shall have the
meaning specified in the recitals. 
  
 “Seller”
shall mean CarMax, in its capacity as seller of the Receivables under this Agreement, and its successors in such capacity. 
  
 “State” shall mean any of the 50 states of the United States or the District of Columbia. 
  
 “Transaction Documents” shall mean this Agreement, the Trust
Agreement, the Sale and Servicing Agreement, the Indenture, the Administration Agreement and the other documents and certificates delivered in connection therewith, in each case as amended, supplemented or otherwise modified and in effect from time
to time. 
  
 “Trust Agreement” shall mean the
Trust Agreement, dated as of September 30, 2005, among CarMax Funding, the Delaware Trustee and the Owner Trustee, as amended and restated by the Amended and Restated Trust Agreement, dated as of December 1, 2005, among CarMax Funding, the
Delaware Trustee and the Owner Trustee. 
  
 “Trustee” shall mean either the Owner Trustee or the Indenture Trustee, as the context requires. 
  
 “UCC” shall mean the Uniform Commercial Code as in effect in the applicable jurisdiction. 
  
 “Underwriters” shall mean the underwriters named in
Schedule A to the Underwriting Agreement. 
  
 “Underwriting Agreement” shall mean the Underwriting Agreement, dated December 6, 2005, among CarMax Funding, CarMax and the Representative, relating to the purchase of the Notes by the Underwriters from CarMax
Funding. 
  

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 SECTION 1.2 Other Definitional Provisions. 
  
 (a) Capitalized terms used herein that are not otherwise defined shall have
the meanings ascribed thereto in the Sale and Servicing Agreement. 
  
 (b) The words “hereof”, “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement; Section,
subsection, Schedule and Exhibit references contained in this Agreement are references to Sections, subsections, Schedules and Exhibits in or to this Agreement unless otherwise specified; the term “proceeds” shall have the
meaning set forth in the applicable UCC; and the word “including” shall mean including without limitation. 
  
 ARTICLE II 
 CONVEYANCE OF RECEIVABLES 
  
 SECTION 2.1 Sale and Conveyance of Receivables. 
  
 (a) On the Closing Date, subject to the terms and conditions of this
Agreement, the Seller hereby agrees to sell, transfer, assign, set over and otherwise convey to the Purchaser, and the Purchaser hereby agrees to purchase from the Seller, without recourse (subject to the Seller’s obligations hereunder and the
satisfaction of the conditions set forth in Section 4.1), all of the right, title and interest of the Seller, whether now owned or hereafter acquired, in, to and under the following: 
  
 (i) the Receivables; 
  
 (ii) all amounts received on or in respect of the
Receivables (including proceeds of the repurchase of Receivables by the Seller pursuant to Section 3.2(f)) after the Cutoff Date; 
  
 (iii) the security interests in the Financed Vehicles granted by the Obligors pursuant to the Receivables and any other interest of the
Seller in such Financed Vehicles; 
  
 (iv) all
proceeds from claims on or refunds of premiums of any physical damage or theft insurance policies covering the Financed Vehicles and any proceeds or refunds of premiums of any credit life or credit disability insurance policies relating to the
Financed Vehicles or the Obligors; 
  
 (v) the
Receivable Files; 
  
 (vi) the right to realize
upon any property (including the right to receive future Liquidation Proceeds) that shall have secured a Receivable and have been repossessed by or on behalf of the Issuer; and 
  
 (vii) all present and future claims, demands, causes of action 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, 

  

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including all proceeds of the conversion thereof, voluntary or involuntary, into cash or other liquid property; all accounts, general intangibles, chattel
paper, instruments, documents, money, investment property, deposit accounts, letters of credit, letter-of-credit rights, insurance proceeds, condemnation awards, rights to payment of any and every kind and other forms of obligations; and all other
property which at any time constitutes all or part of or is included in the proceeds of any of the foregoing. 
  
 (b) The parties hereto intend that the conveyance of the Receivables and related property hereunder be a sale and not a loan. In the event that the
conveyance hereunder is not for any reason considered a sale, the Seller hereby grants to the Purchaser a first priority perfected security interest in all of the Seller’s right, title and interest in, to and under the Receivables and all other
property conveyed hereunder and listed in this Section and all proceeds of any of the foregoing. The parties intend that this Agreement constitute a security agreement under applicable law. Such grant is made to secure the payment of all
amounts payable hereunder, including the Receivables Purchase Price. If such conveyance is for any reason considered to be a loan and not a sale, the Seller consents to the Purchaser transferring such security interest in favor of the Indenture
Trustee and transferring the obligations secured thereby to the Indenture Trustee. 
  
 (c) The Seller agrees to treat the transfer of the Receivables and the related property contemplated by this Section for all purposes (including tax and financial accounting purposes) as an absolute transfer on
all relevant books, records, tax returns, financial statements and other applicable documents. 
  
 SECTION 2.2 Receivables Purchase Price; Payments on the Receivables. 
  
 (a) On the Closing Date, in exchange for the Receivables and other assets described in Section 2.1, the Purchaser shall pay to the Seller the
Receivables Purchase Price. An amount equal to $446,728,269.66 of the Receivables Purchase Price shall be paid by the Purchaser to the Seller in cash or immediately available funds. The remainder of the Receivables Purchase Price shall be paid by
crediting the Seller with a contribution to the capital of the Purchaser. The Purchaser shall deposit, from funds it receives from the issuance of the Notes, an amount equal to the Initial Reserve Account Deposit into the Reserve Account, which
amount shall be an asset of the Issuer. 
  
 (b) The Purchaser
shall be entitled to, and shall convey such right to the Owner Trustee pursuant to the Sale and Servicing Agreement, all payments of principal and interest on or in respect of the Receivables received after the Cutoff Date. 
  
 SECTION 2.3 Transfer of Receivables. Pursuant to the Sale and
Servicing Agreement, the Purchaser will assign all of its right, title and interest in, to and under the Receivables and other assets described in Section 2.1 to the Issuer. The parties hereto acknowledge that the Issuer will pledge its rights
in, to and under the Receivables and other assets described in Section 2.1 to the Indenture Trustee pursuant to the Indenture. The Purchaser has the right to assign its interest under this Agreement as may be required to effect the purposes of
the Sale and Servicing Agreement, without the consent of the Seller, and the Owner Trustee as assignee shall succeed to the rights and obligations hereunder of the Purchaser. 
  

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 SECTION 2.4 Examination of Receivable Files. The Seller will make the Receivable Files available
to the Purchaser or its agent for examination during normal business hours at the Seller’s offices or such other location as otherwise shall be agreed upon by the Purchaser and the Seller. 
  
 SECTION 2.5 Expenses. The Seller will reimburse the Purchaser for
expenses of the Purchaser in connection with the sale of the Notes, including expenses which are reimbursable to the Underwriters by the Purchaser pursuant to the Underwriting Agreement. 
  
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES 
  
 SECTION 3.1
Representations and Warranties of the Purchaser. The Purchaser hereby makes the following representations and warranties to the Seller as of the date of this Agreement and as of the Closing Date: 
  
 (a) Organization and Good Standing. The Purchaser is
a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware, and has power and authority to own its properties and to conduct its business as such properties are currently owned and such
business is presently conducted, and had at all relevant times, and shall have, power, authority and legal right to acquire, own and sell the Receivables. 
  
 (b) Power and Authority; Binding Obligation. The Purchaser has the power and authority to execute and deliver this Agreement and to
carry out its terms; and the execution, delivery and performance of this Agreement has been duly authorized by the Purchaser by all necessary action. This Agreement constitutes the legal, valid and binding obligation of the Purchaser, enforceable
against the Purchaser in accordance with its terms, subject, as to enforceability, to applicable bankruptcy, insolvency, reorganization, conservatorship, receivership, liquidation and other similar laws and to general equitable principles.

  
 (c) No Violation. The consummation of
the transactions contemplated by this Agreement and the fulfillment of the terms hereof shall not conflict with, result in any breach of any of the terms and provisions of, nor constitute (with or without notice or lapse of time) a default under,
the limited liability company agreement or certificate of formation of the Purchaser, or conflict with or breach any of the material terms or provisions of, or constitute (with or without notice or lapse of time) a default under, any indenture,
agreement or other instrument to which the Purchaser is a party or by which it may be bound. 
  
 (d) No Proceedings. There are no proceedings or investigations pending, or, to the knowledge of the Purchaser, threatened, against
the Purchaser before any court, regulatory body, administrative agency or other tribunal or governmental instrumentality having jurisdiction over the Purchaser or its properties (i) asserting the invalidity of this Agreement, (ii) seeking
to prevent the consummation of any of the transactions contemplated by this Agreement or (iii) seeking any determination or ruling that, in the 

  

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reasonable judgment of the Purchaser would materially and adversely affect the performance by the Purchaser of its obligations under, or the validity or
enforceability of, this Agreement or the Receivables. 
  
 SECTION
3.2 Representations and Warranties of the Seller. 
  
 (a)
The Seller hereby makes the following representations and warranties to the Purchaser as of the date of this Agreement and as of the Closing Date: 
  
 (i) Organization and Good Standing. The Seller is a limited liability company duly organized, validly existing and in good standing
under the laws of the State of Delaware, and has power and authority to own its properties and to conduct its business as such properties are currently owned and such business is presently conducted, and had at all relevant times, and shall have,
power, authority and legal right to acquire, own and sell the Receivables. 
  
 (ii) Power and Authority; Binding Obligation. The Seller has the power and authority to execute and deliver this Agreement and to carry out its terms; and the execution, delivery and performance of this
Agreement has been duly authorized by the Seller by all necessary action. This Agreement constitutes the legal, valid and binding obligation of the Seller, enforceable against the Seller in accordance with its terms, subject, as to enforceability,
to applicable bankruptcy, insolvency, reorganization, conservatorship, receivership, liquidation and other similar laws and to general equitable principles. 
  
 (iii) No Violation. The consummation of the transactions contemplated by this Agreement and the fulfillment of the terms hereof
shall not conflict with, result in any breach of any of the terms and provisions of, nor constitute (with or without notice or lapse of time) a default under, the certificate of formation or limited liability company agreement of the Seller, or
conflict with or breach any of the material terms or provisions of, or constitute (with or without notice or lapse of time) a default under, any indenture, agreement or other instrument to which the Seller is a party or by which it may be bound.

  
 (iv) No Proceedings. There are no
proceedings or investigations pending, or, to the knowledge of the Seller, threatened, against the Seller before any court, regulatory body, administrative agency or other tribunal or governmental instrumentality having jurisdiction over the Seller
or its properties (i) asserting the invalidity of this Agreement, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement or (iii) seeking any determination or ruling that, in the reasonable
judgment of the Seller would materially and adversely affect the performance by the Seller of its obligations under, or the validity or enforceability of, this Agreement or the Receivables. 
  
 (v) No Tax Liens. The Seller is not aware of any
material judgment or tax lien filings against the Seller. 
  
 (b)
The Seller hereby makes the following representations and warranties to the Purchaser as of the date of this Agreement and as of the Closing Date, which representations 
  

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 and warranties shall remain operative and in full force and effect, shall survive the transfer and conveyance of the
Receivables and other assets described in Section 2.1 by the Seller to the Purchaser and by the Purchaser to the Issuer and shall inure to the benefit of the Purchaser, the Trustees and the Noteholders: 
  
 (i) Characteristics of Receivables. Each Receivable
(i) has been originated by CarMax Auto or an Affiliate of CarMax Auto in the ordinary course of business in connection with the sale of a new or used motor vehicle and has been fully and properly executed by the parties thereto,
(ii) contains customary and enforceable provisions such that the rights and remedies of the holder thereof are adequate for realization against the collateral of the benefits of the security, (iii) provides for level monthly payments that
fully amortize the Amount Financed by maturity (except that the period between the date of such Receivable and the date of the first Scheduled Payment may be less than or greater than one month and the amount of the first and last Scheduled Payments
may be less than or greater than the level payments) and yield interest at the related APR, (iv) provides for, in the event that such Receivable is prepaid, a prepayment that fully pays the Principal Balance of such Receivable with interest at
the related APR through the date of payment, (v) is a retail installment sale contract substantially in the form of Exhibit B, (vi) is secured by a new or used motor vehicle that had not been repossessed as of the Cutoff Date,
(vii) is a Simple Interest Receivable, (viii) relates to an Obligor who has made at least one payment under such Receivable as of the Cutoff Date and (ix) relates to an Obligor whose mailing address is located in any State.

  
 (ii) Receivable Schedule. The
information set forth in the Receivable Schedule was true and correct in all material respects as of the opening of business on the Cutoff Date, and no selection procedures believed to be adverse to the Depositor and/or the Noteholders were utilized
in selecting the Receivables from those retail installment sale contracts which met the criteria contained in this Agreement. The information set forth in the compact disk or other listing regarding the Receivables made available to the Depositor
and its assigns (which compact disk or other listing is required to be delivered as specified herein) is true and correct in all material respects. 
  
 (iii) Compliance with Law. Each Receivable and the sale of the related Financed Vehicle complied, at the time such Receivable was
originated and complies, as of the Closing Date, in all material respects with all requirements of applicable federal, state and local laws, and regulations thereunder, including usury laws, the Federal Truth-in-Lending Act, the Equal Credit
Opportunity Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Federal Trade Commission Act, the Magnuson-Moss Warranty Act, the Federal Reserve Board’s Regulations B and Z, the Servicemembers Civil Relief Act,
state adaptations of the National Consumer Act and the Uniform Consumer Credit Code and any other consumer credit, equal opportunity and disclosure laws applicable to such Receivable and sale. 
  
 (iv) Binding Obligation. Each Receivable represents
the genuine, legal, valid and binding payment obligation in writing of the related Obligor, enforceable by the holder thereof in all material respects in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency,
reorganization, liquidation or other similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity. 
  

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 (v) No Government Obligor. No Receivable is due from the United States or any
State or from any agency, department or instrumentality of the United States or any State. 
  
 (vi) Security Interest in Financed Vehicles. Immediately prior to the transfer of the Receivables by the Seller to the Depositor,
each Receivable was secured by a valid, binding and enforceable first priority perfected security interest in favor of the Seller in the related Financed Vehicle, which security interest has been validly assigned by the Seller to the Depositor. The
Servicer has received, or will receive within 180 days after the Closing Date, the original certificate of title for each Financed Vehicle (other than any Financed Vehicle that is subject to a certificate of title statute or motor vehicle
registration law that does not require that the original certificate of title for such Financed Vehicle be delivered to the Seller). 
  
 (vii) Receivables in Force. No Receivable has been satisfied, subordinated or rescinded, nor has any Financed Vehicle been released
in whole or in part from the Lien granted by the related Receivable. 
  
 (viii) No Waiver. No provision of any Receivable has been waived in such a manner that such Receivable fails to meet all of the representations and warranties made by the Seller in this Section 3.2(b) with
respect thereto. 
  
 (ix) No Defenses. No
Receivable is subject to any right of rescission, setoff, counterclaim or defense, including the defense of usury, and the operation of any of the terms of any Receivable, or the exercise of any right thereunder, will not render such Receivable
unenforceable in whole or in part or subject to any right of rescission, setoff, counterclaim or defense, including the defense of usury, and the Seller has no knowledge of any such right of rescission, setoff, counterclaim or defense being asserted
or threatened with respect to any Receivable. 
  
 (x) No Liens. The Seller has no knowledge of any liens or claims that have been filed, including liens for work, labor or materials or for unpaid state or federal taxes, relating to any Financed Vehicle that are prior to, or equal or
coordinate with, the security interest in such Financed Vehicle created by the related Receivable. 
  
 (xi) No Default. Except for payment defaults continuing for a period of not more than 30 days, the Seller has no knowledge that any
default, breach, violation or event permitting acceleration under the terms of any Receivable has occurred or that any continuing condition that with notice or the lapse of time or both would constitute a default, breach, violation or event
permitting acceleration under the terms of any Receivable has arisen, and the Seller has not waived any such event or condition. 
  
 (xii) Title. The Seller intends that the transfer of the Receivables contemplated by Section 2.1 constitute a sale of the
Receivables from the Seller to the Depositor and that the beneficial interest in, and title to, the Receivables not be part of the 
  

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 Seller’s estate in the event of the filing of a bankruptcy petition by or against the Seller under
any bankruptcy law. The Seller has not sold, transferred, assigned or pledged any Receivable to any Person other than the Depositor. Immediately prior to the transfer of the Receivables contemplated by Section 2.1, the Seller had good and
marketable title to the Receivables free and clear of any Lien, claim or encumbrance of any Person and, immediately upon such transfer, the Depositor shall have good and marketable title to the Receivables free and clear of any Lien, claim or
encumbrance of any Person. 
  
 (xiii) Security
Interest Matters. This Agreement creates a valid and continuing “security interest” (as defined in the Relevant UCC) in the Receivables in favor of the Depositor, which security interest is prior to all other Liens and is enforceable
as such against creditors of and purchasers from the Seller. With respect to each Receivable, the Seller has taken all steps necessary to perfect its security interest against the related Obligor in the related Financed Vehicle. The Receivables
constitute “tangible chattel paper” (as defined in the Relevant UCC). The Seller has caused or will cause prior to the Closing Date the filing of all appropriate financing statements in the proper filing offices in the appropriate
jurisdictions under applicable law necessary to perfect the security interest in the Receivables granted to the Depositor under this Agreement. Other than the security interest granted to the Depositor under this Agreement, the Seller has not
pledged, assigned, sold, granted a security interest in or otherwise conveyed any of the Receivables. The Seller has not authorized the filing of and is not aware of any financing statements against the Seller that include a description of
collateral covering the Receivables other than any financing statement relating to the security interest granted to the Depositor under the Sale and Servicing Agreement or that has been terminated. The motor vehicle retail installment sale contracts
that constitute or evidence the Receivables do not have any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than the Depositor, the Issuer or the Indenture Trustee. The Seller is not
aware of any judgment or tax lien filings against the Seller. 
  
 (xiv) Financing Statements. All financing statements filed or to be filed against the Seller in favor of the Issuer (as assignee of the Depositor) contain a statement substantially to the following effect:
“A purchase of or security interest in any collateral described in this financing statement will violate the rights of the Issuer.” All financing statements filed or to be filed against the Seller in favor of the Indenture Trustee (as
assignee of the Issuer) contain a statement substantially to the following effect: “A purchase of or security interest in any collateral described in this financing statement will violate the rights of the Indenture Trustee.” 

 
 (xv) Valid Assignment. No Receivable has been
originated in, or is subject to the laws of, any jurisdiction under which the sale, transfer, assignment and conveyance of such Receivable under this Agreement or the Sale and Servicing Agreement or the pledge of such Receivable under the Indenture
is unlawful, void or voidable or under which such Receivable would be rendered void or voidable as a result of any such sale, transfer, assignment, conveyance or pledge. The Seller has not entered into any agreement with any account debtor that
prohibits, restricts or conditions the assignment of the Receivables. 
  

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 (xvi) One Original. There is only one original executed copy of each Receivable.

  
 (xvii) Principal Balance. Each
Receivable had an original Principal Balance of not more than $65,000 and a remaining Principal Balance as of the Cutoff Date of not less than $500. 
  
 (xviii) No Bankrupt Obligors. As of the Cutoff Date, no Receivable was due from an Obligor that was the subject of a proceeding
under the Bankruptcy Code of the United States or was bankrupt. 
  
 (xix) New and Used Vehicles. As of the Cutoff Date, approximately 5.16% of the Pool Balance related to Receivables secured by new Financed Vehicles and approximately 94.84% of the Pool Balance related to
Receivables secured by used Financed Vehicles. 
  
 (xx) Origination. Each Receivable was originated after February 1, 2000. 
  
 (xxi) Term to Maturity. Each Receivable had an original term to maturity of not more than 72 months and not less than 12 months and
a remaining term to maturity as of the Cutoff Date of not more than 71 months and not less than three months. 
  
 (xxii) Weighted Average Remaining Term to Maturity. As of the Cutoff Date, the weighted average remaining term to maturity of the
Receivables was approximately 57.78 months. 
  
 (xxiii) Annual Percentage Rate. Each Receivable has an APR of at least 4.45% and not more than 25.00%. 
  
 (xxiv) Location of Receivable Files. The Receivable Files are maintained at the location listed in Schedule 2 to the Sale and
Servicing Agreement. 
  
 (xxv) Simple Interest
Method. All payments with respect to the Receivables have been allocated consistently in accordance with the Simple Interest Method. 
  
 (xxvi) No Delinquent Receivables. As of the Cutoff Date, no payment due under any Receivable was more than 30 days past due.

  
 (xxvii) Insurance. Each Obligor has
obtained or agreed to obtain physical damage insurance (which insurance shall not be force placed insurance) covering the related Financed Vehicle in accordance with the Seller’s normal requirements. 
  
 (xxviii) Fair Market Value. The Receivables Purchase
Price represents the fair market value of the Receivables. 
  
 (xxix) Custodial Agreements. Immediately prior to the transfer of the Receivables by the Seller to the Depositor, the Seller or an Affiliate of the Seller had possession of the Receivable Files and there were
no, and there will not be any, custodial agreements in effect materially adversely affecting the right or ability of the Seller to make, or cause to be made, any delivery required under this Agreement. 
  

 11 

 (xxx) Bulk Transfer Laws. The transfer of the Receivables and the Receivable Files
by the Seller to the Depositor pursuant to this Agreement is not subject to the bulk transfer laws or any similar statutory provisions in effect in any applicable jurisdiction. 
  
 (c) The Seller shall indemnify the Purchaser and hold the Purchaser harmless against any losses, penalties, fines,
forfeitures, legal fees and related costs, judgments and other costs and expenses resulting from any third party claim, demand, defense or assertion based on or grounded upon, or resulting from, a breach of the Seller’s representations and
warranties set forth in Section 3.2(b). The Trustees shall also have the remedies provided in the Sale and Servicing Agreement. 
  
 (d) Any cause of action against the Seller relating to or arising out of the breach of any of its representations and warranties set forth in
Section 3.2(b) shall accrue as to any Receivable upon (i) discovery of such breach by the Purchaser or either Trustee or notice thereof by the Seller to the Purchaser, (ii) failure by the Seller to cure such breach and
(iii) demand upon the Seller by the Purchaser for all amounts payable in respect of such Receivable under this Agreement. 
  
 (e) The Purchaser or the Seller, as the case may be, shall inform the other parties promptly, in writing, upon discovery of any breach of the
Seller’s representations and warranties set forth in Section 3.2(b) which materially and adversely affects the interests of the Noteholders in any Receivable. 
  
 (f) If a breach of any representation or warranty set forth in Section 3.2(b) which materially and adversely affects
the interests of the Purchaser, the Issuer or the Noteholders in any Receivable shall not have been cured by the close of business on the last day of the Collection Period which includes the thirtieth day after the date on which the Seller becomes
aware of, or receives written notice from the Servicer, the Purchaser or the Owner Trustee of, such breach or failure, the Seller shall repurchase such Receivable from the Purchaser on the Distribution Date following such Collection Period. In
consideration for the repurchase of any such Receivable, the Seller shall remit the Purchase Amount of such Receivable to the Purchaser. Upon any such repurchase, the Purchaser shall, without further action, be deemed to transfer, assign, set-over
and otherwise convey to the Seller, without recourse, representation or warranty, all the right, title and interest of the Purchaser in, to and under such repurchased Receivable and all other related assets described in Section 2.1. The
Purchaser shall execute such documents and instruments of transfer or assignment and take such other actions as shall reasonably be requested by the Seller to effect the conveyance of such Receivable pursuant to this Section. The sole remedy of the
Purchaser with respect to a breach of the Seller’s representations and warranties set forth in Section 3.2(b) shall be to require the Seller to repurchase the related Receivables pursuant to this Section. 
  

 12 

 ARTICLE IV 
 CONDITIONS 
  
 SECTION 4.1
Conditions to Obligation of the Purchaser. The obligation of the Purchaser to purchase the Receivables from the Seller on the Closing Date is subject to the satisfaction of the following conditions: 
  
 (a) Representations and Warranties True. The
representations and warranties of the Seller contained herein and in the other Transaction Documents shall be true and correct on the Closing Date with the same effect as if made on the Closing Date, and each of the Seller and the Servicer shall
have performed all obligations to be performed by it hereunder and under the other Transaction Documents on or before the Closing Date. 
  
 (b) Computer Files Marked. The Seller shall, at its own expense, on or before the Closing Date, indicate in its computer files that
the Receivables have been sold to the Purchaser pursuant to this Agreement and deliver to the Purchaser the Receivables Schedule, certified by an officer of the Seller to be true, correct and complete. 
  
 (c) Release of Lenders. The Seller shall obtain
executed release agreements and UCC partial releases with respect to the Receivables from Bank of America, N.A. (and certain other parties) and CarMax Funding II, in each case in form and substance satisfactory to the Purchaser. 
  
 (d) Documents to be Delivered. The Purchaser shall
have received the following, all of which shall be dated as of the Closing Date or such other date as specified: 
  
 (i) the Receivables Schedule; 
  
 (ii) an Officer’s Certificate of the Seller, in form and substance previously approved by the Purchaser and its counsel, as to, among
other things, the representations and warranties of the Seller and satisfaction of conditions precedent; 
  
 (iii) an opinion or opinions of counsel for the Seller, in form and substance previously approved by the Purchaser and its counsel,
addressed to the Purchaser; 
  
 (iv) [RESERVED];

  
 (v) copies of resolutions of the manager of
the Seller approving the execution, delivery and performance of the Transaction Documents to which the Seller is a party, and the performance of the transactions contemplated hereunder and thereunder, certified by the Secretary or an Assistant
Secretary of the Seller; 
  
 (vi) copies of the
certificate of formation of the Seller, together with all amendments, revisions and supplements thereto, certified by the Delaware Secretary of State as of a recent date, and a certificate of good standing from the Delaware Secretary of State, dated
as of a recent date, to the effect that the Seller has been duly formed, is in good standing and has a legal existence; 
  

 13 

 (vii) UCC search reports from the appropriate offices in Delaware as to the Seller;

  
 (viii) reliance letters to each opinion of
counsel to the Seller or the Servicer delivered to Standard & Poor’s or Moody’s in connection with the purchase of the Receivables hereunder or the issuance or sale of the Notes; 
  
 (ix) a financing statement to be filed with the Delaware
Secretary of State, naming the Seller, as seller or debtor, the Purchaser, as purchaser or secured party, and the Issuer as assignee, naming the Receivables and the related property described in Section 2.1 as collateral and meeting the
requirements of the laws of each such jurisdiction and in such manner as is necessary to perfect the sale, transfer, assignment and conveyance of the Receivables to the Purchaser; 
  
 (x) the Bill of Sale; and 
  
 (xi) such other documents, certificates and opinions as may be reasonably requested by the Purchaser or its
counsel. 
  
 (e) Execution of Transaction
Documents. The Transaction Documents shall have been executed and delivered by the parties thereto. 
  
 (f) Rating of the Notes. Moody’s and Standard & Poor’s, respectively, shall have assigned ratings of
(i) ”Prime-1” and “A-1+” to the Class A-1 Notes, (ii) ”Aaa” and “AAA” to the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes, (iii) ”A2” and
“A” to the Class B Notes and (iv) “Baa3” and “BBB” to the Class C Notes. 
  
 (g) No Unsolicited Ratings. There shall not have been issued an unsolicited rating of any Class of Notes by any nationally
recognized statistical rating agency at a level that is lower than the ratings for such Class of Notes from Moody’s or Standard & Poor’s specified in Section 4.1(f). 
  
 (h) Other Transactions. The transactions contemplated
by the Transaction Documents and the Underwriting Agreement shall be consummated on the Closing Date. 
  
 SECTION 4.2 Conditions to Obligation of the Seller. The obligation of the Seller to sell the Receivables to the Purchaser on the Closing Date is
subject to the satisfaction of the following conditions: 
  
 (a) Representations and Warranties True. The representations and warranties of the Purchaser contained herein and in the other Transaction Documents shall be true and correct on the Closing Date with the same
effect as if then made, and the Purchaser shall have performed all obligations to be performed by it hereunder and under the other Transaction Documents on or before the Closing Date. 
  

 14 

 (b) Payment of Receivables Purchase Price. In consideration of the sale of the
Receivables from the Seller to the Purchaser as provided in Section 2.1, on the Closing Date the Purchaser shall have paid to the Seller the Receivables Purchase Price. 
  
 (c) Opinions of Purchaser. An opinion or opinions of counsel for the Purchaser addressed to the
Seller and the Underwriters shall have been delivered. 
  
 ARTICLE
V 
 COVENANTS OF THE SELLER 
  
 SECTION 5.1 Protection of Right, Title and Interest in, to and Under the Receivables. 
  
 (a) The Seller, at its expense, shall cause all financing statements and
continuation statements and any other necessary documents covering the Purchaser’s right, title and interest in, to and under the Receivables and other property conveyed by the Seller to the Purchaser hereunder to be promptly authorized,
recorded, registered and filed, and at all times to be kept recorded, registered and filed, all in such manner and in such places as may be required by law fully to preserve and protect the right, title and interest of the Purchaser hereunder to the
Receivables and such other property. The Seller shall deliver to the Purchaser file-stamped copies of, or filing receipts for, any document recorded, registered or filed as provided above, as soon as available following such recording, registration
or filing. The Purchaser shall cooperate fully with the Seller in connection with the obligations set forth above and will execute any and all documents reasonably required to fulfill the intent of this subsection. 
  
 (b) Within five days after the Seller makes any change in its name, identity
or organizational structure which would make any financing statement or continuation statement filed in accordance with Section 4.1(d) seriously misleading within the meaning of the UCC as in effect in the applicable state, the Seller shall
give the Purchaser notice of any such change and, within 30 days after such change, shall authorize and file such financing statements or amendments as may be necessary to continue the perfection of the Purchaser’s security interest in the
Receivables and the proceeds thereof. 
  
 (c) The Seller shall
give the Purchaser written notice within five days of any relocation of the state of organization of the Seller or any office in which the Seller keeps records concerning the Receivables and whether, as a result of such relocation, the applicable
provisions of the UCC would require the filing of any amendment of any previously filed financing or continuation statement or of any new financing statement and, within 30 days after such relocation, shall authorize and file such financing
statements or amendments as may be necessary to continue the perfection of the interest of the Purchaser in the Receivables and the proceeds thereof. The Seller shall at all times maintain its state of organization, its principal place of business
and its chief executive office and the location of the office where the Receivables Files and any accounts and records relating to the Receivables are kept within the United States. 
  
 (d) The Seller shall maintain accounts and records as to each Receivable accurately and in sufficient detail to permit
(i) the reader thereof to know at any time the status of such Receivable, including payments and recoveries made and payments owing (and the nature of each) and (ii) reconciliation between payments or recoveries on (or with respect to)
each Receivable. 
  

 15 

 (e) The Seller shall maintain its computer systems so that, from and after the time of the transfer of
the Receivables to the Purchaser pursuant to this Agreement, the Seller’s master computer records (including any back-up archives) that refer to a Receivable shall indicate clearly and unambiguously that such Receivable is owned by the
Purchaser (or, upon transfer of the Receivables to the Issuer, by the Issuer). Indication of the Purchaser’s ownership of a Receivable shall be deleted from or modified on the Seller’s computer systems when, and only when, such Receivable
shall have been paid in full or repurchased by the Seller. 
  
 (f)
If at any time the Seller shall propose to sell, grant a security interest in or otherwise transfer any interest in any motor vehicle retail installment sale contract to any prospective purchaser, lender or other transferee, the Seller shall give to
such prospective purchaser, lender or other transferee computer tapes, compact disks, records or print-outs (including any restored from back-up archives) that, if they shall refer in any manner whatsoever to any Receivable, shall indicate clearly
and unambiguously that such Receivable has been sold and is owned by the Purchaser (or, upon transfer of the Receivables to the Issuer, the Issuer), unless such Receivable has been paid in full or repurchased by the Seller. 
  
 (g) The Seller shall permit the Purchaser and its agents at any time during
normal business hours to inspect, audit and make copies of and abstracts from the Seller’s records regarding any Receivable. 
  
 (h) If the Seller has repurchased one or more Receivables from the Purchaser or the Issuer pursuant to Section 3.2(f), the Seller shall, upon
request, furnish to the Purchaser, within ten days, a list of all Receivables (by receivable number and name of Obligor) then owned by the Purchaser, together with a reconciliation of such list to the Receivables Schedule. 
  
 SECTION 5.2 Security Interests. Except for the conveyances hereunder,
the Seller covenants that it will not sell, pledge, assign or transfer to any other Person, or grant, create, incur, assume or suffer to exist any Lien on any Receivable, whether now existing or hereafter created, or any interest therein; the Seller
will immediately notify the Purchaser of the existence of any Lien on any Receivable and, in the event that the interests of the Noteholders in such Receivable are materially and adversely affected, such Receivable shall be repurchased from the
Purchaser by the Seller in the manner and with the effect specified in Section 3.2(f), and the Seller shall defend the right, title and interest of the Purchaser in, to and under the Receivables, whether now existing or hereafter created,
against all claims of third parties claiming through or under the Seller. 
  
 SECTION 5.3 Delivery of Payments. The Seller covenants and agrees to deliver in kind upon receipt to the Servicer under the Sale and Servicing Agreement all payments received by the Seller in respect of the
Receivables as soon as practicable after receipt thereof by the Seller. 
  
 SECTION 5.4 No Impairment. The Seller covenants that it shall take no action, nor omit to take any action, which would impair the rights of the Purchaser in any Receivable, nor shall it, except as otherwise provided in this Agreement
or the Sale and Servicing Agreement, reschedule, revise or defer payments due on any Receivable. 
  

 16 

 SECTION 5.5 Costs and Expenses. The Seller shall pay all reasonable costs and expenses incurred in
connection with the perfection of the Purchaser’s right, title and interest in, to and under the Receivables. 
  
 SECTION 5.6 Hold Harmless. The Seller shall protect, defend, indemnify and hold the Purchaser and the Issuer and their respective assigns and their
attorneys, accountants, employees, officers and directors harmless from and against all losses, costs, liabilities, claims, damages and expenses of every kind and character, as incurred, resulting from or relating to or arising out of (i) the
inaccuracy, nonfulfillment or breach of any representation, warranty, covenant or agreement made by the Seller in this Agreement, (ii) any legal action, including any counterclaim, that has either been settled by the litigants (which
settlement, if the Seller is not a party thereto shall be with the consent of the Seller) or has proceeded to judgment by a court of competent jurisdiction, in either case to the extent it is based upon alleged facts that, if true, would constitute
a breach of any representation, warranty, covenant or agreement made by the Seller in this Agreement, (iii) any actions or omissions of the Seller or any employee or agent of the Seller occurring prior to the Closing Date with respect to any
Receivable or Financed Vehicle or (iv) any failure of a Receivable to be originated in compliance with all requirements of law. These indemnity obligations shall be in addition to any obligation that the Seller may otherwise have. 

 
 ARTICLE VI 
 MISCELLANEOUS PROVISIONS 
  
 SECTION 6.1 Amendment. 
  
 (a) This Agreement may be amended from time to time by a written amendment duly executed and delivered by the Purchaser and the Seller, without the consent of any Noteholder, to cure any ambiguity, to correct or supplement any provision
herein which may be inconsistent with any other provision herein or to add any other provision with respect to matters or questions arising under this Agreement which shall not be inconsistent with the provisions of this Agreement or the Sale and
Servicing Agreement; provided, however, that any such amendment shall not, as evidenced by an Opinion of Counsel to the Seller delivered to the Indenture Trustee, adversely affect in any material respect the interests of the
Noteholders. 
  
 (b) This Agreement may also be amended from time
to time for any other purpose by a written amendment duly executed and delivered by the Seller and by the Purchaser; provided, however, that any such amendment that materially adversely affects the interests of the Noteholders under
the Indenture, the Sale and Servicing Agreement or the Trust Agreement must be consented to by the Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class. 
  
 (c) Promptly after the execution of any amendment to this Agreement, the
Seller shall furnish written notification of the substance of such amendment to the Owner Trustee, the Indenture Trustee and the Rating Agencies. 
  

 17 

 SECTION 6.2 Termination. The respective obligations and responsibilities of the Seller and the
Purchaser created hereby shall terminate, except for the indemnity obligations of the Seller as provided herein, upon the termination of the Issuer as provided in the Trust Agreement. 
  
 SECTION 6.3 Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
  
 SECTION 6.4 Notices. All demands, notices and communications hereunder
shall be in writing and shall be deemed to have been duly given if personally delivered at or sent by telecopier, overnight courier or mailed by registered mail, return receipt requested, in the case of (i) the Purchaser, to CarMax Auto Funding
LLC, 12800 Tuckahoe Creek Parkway, Suite 400, Richmond, Virginia 23238, Attention: Treasurer, and (ii) the Seller, to CarMax Business Services, LLC, 12800 Tuckahoe Creek Parkway, Richmond, Virginia 23238, Attention: Treasury Department; or, as
to either of such Persons, at such other address as shall be designated by such Person in a written notice to the other Person. 
  
 SECTION 6.5 Severability of Provisions. If any one or more of the covenants, agreements, provisions or terms of this Agreement shall for any reason
whatsoever be held invalid, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants, agreements, provisions and terms of this Agreement and shall in no way affect the validity or enforceability of
the other covenants, agreements, provisions and terms of this Agreement or any amendment or supplement hereto. 
  
 SECTION 6.6 Further Assurances. The Seller and the Purchaser agree to do and perform, from time to time, any and all acts and to execute any and
all further instruments required or reasonably requested by the other party hereto or by the Issuer or the Indenture Trustee more fully to effect the purposes of this Agreement, including the execution of any financing statements, amendments,
continuation statements or releases relating to the Receivables for filing under the provisions of the UCC or other law of any applicable jurisdiction. 
  
 SECTION 6.7 No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of the Purchaser, the Issuer or the
Seller, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of
any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exhaustive of any rights, remedies, powers and privileges provided by law. 
  
 SECTION 6.8 Counterparts. This Agreement may be executed in two or
more counterparts (and by different parties on separate counterparts), each of which shall be an original, but all of which together shall constitute one and the same instrument. 
  

 18 

 SECTION 6.9 Third-Party Beneficiaries. This Agreement will inure to the benefit of and be binding
upon the parties hereto, the Issuer and the Indenture Trustee for the benefit of the Noteholders, who shall be considered to be third-party beneficiaries hereof. Except as otherwise provided in this Agreement, no other Person will have any right or
obligation hereunder. 
  
 SECTION 6.10 Headings and Table of
Contents. The Table of Contents and headings herein are for purposes of reference only and shall not otherwise affect the meaning or interpretation of any provision hereof. 
  
 SECTION 6.11 Representations, Warranties and Agreements to Survive. The respective agreements, representations,
warranties and other statements by the Seller and by the Purchaser set forth in or made pursuant to this Agreement shall remain in full force and effect and will survive the closing hereunder of the transfers and assignments by the Seller to the
Purchaser and by the Purchaser to the Issuer and shall inure to the benefit of the Purchaser, the Trustees and the Noteholders. 
  
 SECTION 6.12 No Proceedings. The Seller covenants and agrees that so long as this Agreement is in effect, and for one year plus one day following
its termination, it will not file any involuntary petition or otherwise institute any bankruptcy, reorganization arrangement, insolvency or liquidation proceeding or other proceedings under any federal or state bankruptcy law or similar law against
the Issuer or the Owner Trustee. 
  
 SECTION 6.13
Accountant’s Letters. 
  
 (a) The Seller shall cause
a firm of independent certified public accountants (who may also render other services to the Seller) to perform certain procedures regarding the characteristics of the Receivables described in the Receivables Schedule and to compare those
characteristics to the information with respect to the Receivables contained in the Prospectus. The Seller shall cooperate with the Purchaser and such accountants in making available all information and taking all steps reasonably necessary to
permit such accountants to complete such procedures and to deliver the letters required of them under the Underwriting Agreement. 
  
 (b) The Seller shall cause a firm of independent certified public accountants (who may also render other services to the Seller) to deliver to the
Purchaser a letter, dated December 14, 2005, in the form previously agreed to by the Seller and the Purchaser, with respect to the financial and statistical information contained in the Prospectus under the caption
“CarMax—Delinquency, Credit Loss and Recovery Information” and with respect to such other information as may be agreed in the forms of such letters. 
  
 SECTION 6.14 Obligations of Purchaser. The obligations of the Purchaser under this Agreement shall not be affected by
reason of any invalidity, illegality or irregularity of any Receivable. 
  

 19 

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

			
	 CARMAX BUSINESS SERVICES, LLC,
as Seller

		
	 By:
	 	 /s/ Keith D. Browning

	 Name:
	 	 Keith D. Browning

	 Title:
	 	 Chief Financial Officer

	
	 CARMAX AUTO FUNDING LLC,
as Purchaser

		
	 By:
	 	 /s/ Thomas W. Reedy

	 Name:
	 	 Thomas W. Reedy

	 Title:
	 	 Treasurer

  
 S-1 

 
 Receivables Purchase Agreement 

 SCHEDULE A 
  
 RECEIVABLES SCHEDULE 
  
 [ON FILE WITH THE SERVICER] 
  

 SA-1 

 EXHIBIT A 
  
 BILL OF SALE AND ASSIGNMENT 
  
 For value received, in accordance with the receivables purchase agreement, dated as of December 1, 2005 (the “Receivables Purchase
Agreement”), between the undersigned and CarMax Auto Funding LLC (the “Purchaser”), the undersigned does hereby sell, assign, transfer and otherwise convey unto the Purchaser, without recourse, all right, title and interest
of the undersigned in and to (i) the Receivables listed on Schedule A hereto (the “Receivables”); (ii) all amounts received on or in respect of the Receivables (including proceeds of the repurchase of Receivables by
the Seller pursuant to the Receivables Purchase Agreement) after the Cutoff Date; (iii) the security interests in the Financed Vehicles granted by the Obligors pursuant to the Receivables and any other interest of the undersigned in such
Financed Vehicles; (iv) all proceeds from claims on or refunds of premiums of any physical damage or theft insurance policies covering the Financed Vehicles and any proceeds or refunds of premiums of any credit life or credit disability
insurance policies relating to the Financed Vehicles or the Obligors; (v) the Receivable Files; (vi) the right to realize upon any property (including the right to receive future Liquidation Proceeds) that shall have secured a Receivable
and have been repossessed by or on behalf of the Issuer; and (vii) all present and future claims, demands, causes of action 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 of the conversion thereof, voluntary or involuntary, into cash or other liquid property, all accounts, general intangibles, chattel paper, instruments,
documents, money, investment property, deposit accounts, letters of credit, letter-of-credit rights, insurance proceeds, condemnation awards, rights to payment of any and every kind and other forms of obligations, and all other property which at any
time constitutes all or part of or is included in the proceeds of any of the foregoing. 
  
 This Bill of Sale and Assignment is made pursuant to and upon the representations, warranties and agreements on the part of the undersigned contained in the Receivables Purchase Agreement and is to be governed by the
Receivables Purchase Agreement. 
  
 Capitalized terms used and not
otherwise defined herein shall have the meaning assigned to them in the Receivables Purchase Agreement. 
  
 IN WITNESS WHEREOF, the undersigned has caused this Bill of Sale and Assignment to be duly executed as of December 14, 2005. 
  

			
	 CARMAX BUSINESS SERVICES, LLC

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 A-1 

 EXHIBIT B 
  
 FORM OF RETAIL INSTALLMENT SALE CONTRACT 
  
 [SEE ATTACHED] 
  

 B-1Class A(2005-11) Terms Document

 Exhibit 4.1 
  
 EXECUTION COPY 
  

  
 MBNA CREDIT CARD MASTER NOTE TRUST

  
 as Issuer 
  
 CLASS A(2005-11) TERMS DOCUMENT 
  
 dated as of December 16, 2005 
  
 to 
  
 MBNASERIES INDENTURE SUPPLEMENT 
  
 dated as of May 24, 2001 
  
 to 
  
 INDENTURE 
  
 dated as of May 24, 2001 
  
 THE BANK OF NEW YORK

  
 as Indenture Trustee 
  

 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	Page

	ARTICLE I         DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION	  	1
	 	  	Section 1.01.	  	Definitions	  	1
				
	 	  	Section 1.02.	  	Governing Law; Submission to Jurisdiction; Agent for Service of Process	  	5
				
	 	  	Section 1.03.	  	Counterparts	  	5
				
	 	  	Section 1.04.	  	Ratification of Indenture and Indenture Supplement	  	5
	ARTICLE II         THE CLASS A(2005-11) NOTES	  	7
	 	  	Section 2.01.	  	Creation and Designation	  	7
				
	 	  	Section 2.02.	  	Specification of Required Subordinated Amount and other Terms	  	7
				
	 	  	Section 2.03.	  	Interest Payment	  	7
				
	 	  	Section 2.04.	  	Calculation Agent; Determination of LIBOR	  	8
				
	 	  	Section 2.05.	  	Payments of Interest and Principal	  	8
				
	 	  	Section 2.06.	  	Form of Delivery of Class A(2005-11) Notes; Depository; Denominations	  	9
				
	 	  	Section 2.07.	  	Delivery and Payment for the Class A(2005-11) Notes	  	9
				
	 	  	Section 2.08.	  	Targeted Deposits to the Accumulation Reserve Account	  	9
	ARTICLE III         REPRESENTATIONS AND WARRANTIES	  	10
	 	  	Section 3.01.	  	Issuer’s Representations and Warranties	  	10

  

 -i- 

 THIS CLASS A(2005-11) TERMS DOCUMENT (this “Terms Document”), by and between MBNA CREDIT
CARD MASTER NOTE TRUST, a statutory trust created under the laws of the State of Delaware (the “Issuer”), having its principal office at Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890, and THE BANK OF NEW
YORK, a New York banking corporation ( the “Indenture Trustee”), is made and entered into as of December 16, 2005. 
  
 Pursuant to this Terms Document, the Issuer and the Indenture Trustee shall create a new tranche of Class A Notes and shall specify the principal
terms thereof. 
  
 ARTICLE I 
  
 Definitions and Other Provisions of General Application 
  
 Section 1.01. Definitions. For all purposes of this Terms
Document, except as otherwise expressly provided or unless the context otherwise requires: 
  

	 	(1)	the terms defined in this Article have the meanings assigned to them in this Article, and include the plural as well as the singular; 

  

	 	(2)	all other terms used herein which are defined in the Indenture Supplement or the Indenture, either directly or by reference therein, have the meanings assigned to them therein;

  

	 	(3)	all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles and, except as otherwise herein
expressly provided, the term “generally accepted accounting principles” with respect to any computation required or permitted hereunder means such accounting principles as are generally accepted in the United States of America at the date
of such computation; 

  

	 	(4)	all references in this Terms Document to designated “Articles,” “Sections” and other subdivisions are to the designated Articles, Sections and other subdivisions
of this Terms Document as originally executed; 

  

	 	(5)	the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Terms Document as a whole and not to any particular
Article, Section or other subdivision; 

  

	 	(6)	in the event that any term or provision contained herein shall conflict with or be inconsistent with any term or provision contained in the Indenture Supplement or the Indenture,
the terms and provisions of this Terms Document shall be controlling; 

  

	 	(7)	each capitalized term defined herein shall relate only to the Class A(2005-11) Notes and no other tranche of Notes issued by the Issuer; and 

  

	 	(8)	“including” and words of similar import will be deemed to be followed by “without limitation.” 

 “Accumulation Reserve Funding Period” shall mean, (a) if the Accumulation Period
Length is determined to be one (1) month, there shall be no Accumulation Reserve Funding Period and (b) otherwise, the period (x) commencing on the earliest to occur of (i) the Monthly Period beginning three (3) calendar
months prior to the first Transfer Date for which a budgeted deposit is targeted to be made into the Principal Funding sub-Account of the Class A(2005-11) Notes pursuant to Section 3.10(b) of the Indenture Supplement, (ii) the
Monthly Period following the first Transfer Date following and including the November 2008 Transfer Date for which the Quarterly Excess Available Funds Percentage is less than 2%, but in such event the Accumulation Reserve Funding Period shall not
be required to commence earlier than 24 months prior to the Expected Principal Payment Date, (iii) the Monthly Period following the first Transfer Date following and including the May 2009 Transfer Date for which the Quarterly Excess Available
Funds Percentage is less than 3%, but in such event the Accumulation Reserve Funding Period shall not be required to commence earlier than 18 months prior to the Expected Principal Payment Date, and (iv) the Monthly Period following the first
Transfer Date following and including the July 2009 Transfer Date for which the Quarterly Excess Available Funds Percentage is less than 4%, but in such event the Accumulation Reserve Funding Period shall not be required to commence earlier than 16
months prior to the Expected Principal Payment Date and (y) ending on the close of business on the last day of the Monthly Period preceding the earlier to occur of (i) the Expected Principal Payment Date for the Class A(2005-11) Notes and
(ii) the date on which the Class A(2005-11) Notes are paid in full. 
  
 “Base Rate” means, with respect to any Monthly Period, the sum of (i) the Weighted Average Interest Rates for the Outstanding MBNAseries Notes, (ii) the Net Servicing Fee Rate (as such term
is defined in the Series 2001-D Supplement) and (iii) so long as MBNA or The Bank of New York is the Servicer, the Servicer Interchange Rate, in each case, for such Monthly Period. 
  
 “Calculation Agent” is defined in Section 2.04(a). 
  
 “Class A(2005-11) Note” means any Note, substantially in the
form set forth in Exhibit A-1 to the Indenture Supplement, designated therein as a Class A(2005-11) Note and duly executed and authenticated in accordance with the Indenture. 
  
 “Class A(2005-11) Noteholder” means a Person in whose name a Class A(2005-11) Note is registered in the
Note Register. 
  
 “Class A(2005-11) Termination
Date” means the earliest to occur of (a) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class A(2005-11) Notes is paid in full, (b) the Legal Maturity Date and (c) the date on which the
Indenture is discharged and satisfied pursuant to Article VI thereof. 
  
 “Class A Required Subordinated Amount of Class B Notes” is defined in Section 2.02(a). 
  
 “Class A Required Subordinated Amount of Class C Notes” is defined in Section 2.02(b). 
  
 “Controlled Accumulation Amount” means $41,666,666.67;
provided, however, if the Accumulation Period Length is determined to be less than twelve (12) months pursuant to 
  

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 Section 3.10(b)(ii) of the Indenture Supplement, the Controlled Accumulation Amount shall be the amount
specified in the definition of “Controlled Accumulation Amount” in the Indenture Supplement. 
  
 “Excess Available Funds Percentage” means, with respect to any Transfer Date, the amount, if any, by which the Portfolio Yield for the
preceding Monthly Period exceeds the Base Rate for such Monthly Period. 
  
 “Expected Principal Payment Date” means December 15, 2010. 
  
 “Initial Dollar Principal Amount” means $500,000,000. 
  
 “Interest Payment Date” means the fifteenth day of each month commencing February 15, 2006, or if such fifteenth day is not a
Business Day, the next succeeding Business Day. 
  
 “Interest Period” means, with respect to any Interest Payment Date, the period from and including the previous Interest Payment Date (or in the case of the initial Interest Payment Date, from and including the Issuance
Date) through the day preceding such Interest Payment Date. 
  
 “Issuance Date” means December 16, 2005. 
  
 “Legal Maturity Date” means May 15, 2013. 
  
 “LIBOR” means, for any Interest Period, the London interbank offered rate for one-month United States dollar deposits determined by the Calculation Agent on the LIBOR Determination Date for each
Interest Period in accordance with the provisions of Section 2.04. 
  
 “LIBOR Determination Date” means (i) December 14, 2005 for the period from and including the Issuance Date to but excluding January 17, 2006, (ii) January 12, 2006 for the period from
and including January 17, 2006 to but excluding February 15, 2006 and (iii) for each Interest Period thereafter, the second London Business Day prior to the Interest Payment Date on which such Interest Period commences. 
  
 “London Business Day” means any Business Day on which
dealings in deposits in United States Dollars are transacted in the London interbank market. 
  
 “MBNAseries Servicer Interchange” means, with respect to any Monthly Period, an amount equal to the product of (a) the Servicer Interchange (as such term is defined in the Series 2001-D
Supplement) with respect to such Monthly Period and (b) a fraction the numerator of which is the Weighted Average Available Funds Allocation Amount for the MBNAseries for such Monthly Period and the denominator of which is the Weighted Average
Available Funds Allocation Amount for all series of Notes for such Monthly Period. 
  
 “Note Interest Rate” means a per annum rate equal to 0.04% in excess of LIBOR as determined by the Calculation Agent on the related LIBOR Determination Date with respect to each Interest Period.

  

 3 

 “Paying Agent” means The Bank of New York. 
  
 “Portfolio Yield” means, with respect to any Monthly Period,
the annualized percentage equivalent of a fraction, the numerator of which is (a) the amount of Available Funds allocated to the MBNAseries pursuant to Section 501 of the Indenture, plus (b) any Interest Funding
sub-Account Earnings on the related Transfer Date, plus (c) any amounts to be treated as MBNAseries Available Funds pursuant to Sections 3.20(d) and 3.27(a) of the Indenture Supplement, plus (d) the MBNAseries
Servicer Interchange for such Monthly Period, minus (e) the excess, if any, of the sum of the PFA Prefunding Earnings Shortfall plus the PFA Accumulation Earnings Shortfall over the sum of the aggregate amount to be treated as
MBNAseries Available Funds for such Monthly Period pursuant to Sections 3.04(a)(ii) and 3.25(a) of the Indenture Supplement plus any other amounts applied to cover earnings shortfalls on amounts in the Principal Funding
sub-Account for any tranche of MBNAseries Notes for such Monthly Period, minus (f) the MBNAseries Investor Default Amount for such Monthly Period, and the denominator of which is the Weighted Average Available Funds Allocation Amount for
the MBNAseries for such Monthly Period. 
  
 “Predecessor
Note” means, with respect to any particular Note, every previous Note evidencing all or a portion of the same debt as that evidenced by such particular Note; and, for the purpose of this definition, any Note authenticated and delivered
under Section 306 of the Indenture in lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as the mutilated, lost, destroyed or stolen Note. 
  
 “Quarterly Excess Available Funds Percentage” means, with
respect to the November 2008 Transfer Date and each Transfer Date thereafter, the percentage equivalent of a fraction the numerator of which is the sum of the Excess Available Funds Percentages with respect to the immediately preceding three Monthly
Periods and the denominator of which is three. 
  
 “Record
Date” means, for any Transfer Date, the last Business Day of the preceding Monthly Period. 
  
 “Reference Banks” means four major banks in the London interbank market selected by the Beneficiary. 
  
 “Required Accumulation Reserve sub-Account Amount” means,
with respect to any Monthly Period during the Accumulation Reserve Funding Period, an amount equal to (i) 0.5% of the Outstanding Dollar Principal Amount of the Class A(2005-11) Notes as of the close of business on the last day of the preceding
Monthly Period or (ii) any other amount designated by the Issuer; provided, however, that if such designation is of a lesser amount, the Note Rating Agencies shall have provided prior written confirmation that a Ratings Effect
will not occur with respect to such change. 
  
 “Servicer
Interchange Rate” means, for any Monthly Period, the percentage equivalent of a fraction, the numerator of which is the MBNAseries Servicer Interchange for such Monthly Period, and the denominator of which is the Weighted Average Available
Funds Allocation Amount for the MBNAseries for such Monthly Period. 
  
 “Stated Principal Amount” means $500,000,000. 
  

 4 

 “Telerate Page 3750” means the display page currently so designated on the Moneyline
Telerate Service (or such other page as may replace that page on that service for the purpose of displaying comparable rates or prices). 
  
 “Weighted Average Interest Rates” means, with respect to any Outstanding Notes of a class or tranche of the MBNAseries, or of all of the
Outstanding Notes of the MBNAseries, on any date, the weighted average (weighted based on the Outstanding Dollar Principal Amount of the related Notes on such date) of the following rates of interest: 
  
 (a) in the case of a tranche of Dollar Interest-bearing Notes with no
Derivative Agreement for interest, the rate of interest applicable to that tranche on that date; 
  
 (b) in the case of a tranche of Discount Notes, the rate of accretion (converted to an accrual rate) of that tranche on that date; 
  
 (c) in the case of a tranche of Notes with a payment due under a Performing
Derivative Agreement for interest, the rate at which payments by the Issuer to the applicable Derivative Counterparty accrue on that date (prior to the netting of such payments, if applicable); and 
  
 (d) in the case of a tranche of Notes with a non-Performing Derivative
Agreement for interest, the rate specified for that date in the related terms document. 
  
 Section 1.02. Governing Law; Submission to Jurisdiction; Agent for Service of Process. This Terms Document shall be governed by and construed in accordance with the laws of the State of Delaware, without
regard to principles of conflict of laws. The parties hereto declare that it is their intention that this Terms Document shall be regarded as made under the laws of the State of Delaware and that the laws of said State shall be applied in
interpreting its provisions in all cases where legal interpretation shall be required. Each of the parties hereto agrees (a) that this Terms Document involves at least $100,000.00, and (b) that this Terms Document has been entered into by
the parties hereto in express reliance upon 6 DEL. C. § 2708. Each of the parties hereto hereby irrevocably and unconditionally agrees (a) to be subject to the jurisdiction of the courts of the State of Delaware and of the federal courts
sitting in the State of Delaware, and (b)(1) to the extent such party is not otherwise subject to service of process in the State of Delaware, to appoint and maintain an agent in the State of Delaware as such party’s agent for acceptance of
legal process, and (2) that, to the fullest extent permitted by applicable law, service of process may also be made on such party by prepaid certified mail with a proof of mailing receipt validated by the United States Postal Service
constituting evidence of valid service, and that service made pursuant to (b)(1) or (2) above shall, to the fullest extent permitted by applicable law, have the same legal force and effect as if served upon such party personally within the
State of Delaware. 
  
 Section 1.03. Counterparts.
This Terms Document may be executed in any number of counterparts, each of which so executed will be deemed to be an original, but all such counterparts will together constitute but one and the same instrument. 
  
 Section 1.04. Ratification of Indenture and Indenture Supplement.
As supplemented by this Terms Document, each of the Indenture and the Indenture Supplement is in 
  

 5 

 all respects ratified and confirmed and the Indenture as so supplemented by the Indenture Supplement as so supplemented
and this Terms Document shall be read, taken and construed as one and the same instrument. 
  
 [END OF ARTICLE I] 
  

 6 

 ARTICLE II 
  
 The Class A(2005-11) Notes 
  
 Section 2.01. Creation and Designation. There is hereby created a tranche of MBNAseries Class A Notes to be issued pursuant to the
Indenture and the MBNAseries Indenture Supplement to be known as the “MBNAseries Class A(2005-11) Notes.” 
  
 Section 2.02. Specification of Required Subordinated Amount and other Terms. 
  
 (a) For the Class A(2005-11) Notes for any date of determination, the Class A Required Subordinated Amount of Class B
Notes will be an amount equal to 8.82353% of (i) the Adjusted Outstanding Dollar Principal Amount of the Class A(2005-11) Notes on such date or (ii) if an Early Redemption Event with respect to the Class A(2005-11) Notes shall have
occurred, if an Event of Default and acceleration of the Class A(2005-11) Notes shall have occurred or if the Class A Usage of the Class B Required Subordinated Amount for such tranche of Class A Notes is greater than zero, the Adjusted
Outstanding Dollar Principal Amount of the Class A(2005-11) Notes as of close of business on the day immediately preceding the occurrence of such Early Redemption Event, such Event of Default and acceleration or the date on which the Class A
Usage of Class B Required Subordinated Amount exceeded zero. 
  
 (b) For the Class A(2005-11) Notes for any date of determination, the Class A Required Subordinated Amount of Class C Notes will be an amount equal to 8.82353% of (i) the Adjusted Outstanding Dollar Principal Amount of the Class
A(2005-11) Notes on such date or (ii) if an Early Redemption Event with respect to the Class A(2005-11) Notes shall have occurred, if an Event of Default and acceleration of the Class A(2005-11) Notes shall have occurred or if the Class A
Usage of the Class C Required Subordinated Amount for such tranche of Class A Notes is greater than zero, the Adjusted Outstanding Dollar Principal Amount of the Class A(2005-11) Notes as of close of business on the day immediately preceding
the occurrence of such Early Redemption Event, such Event of Default and acceleration or the date on which the Class A Usage of Class C Required Subordinated Amount exceeded zero. 
  
 (c) The Issuer may change the percentages set forth in clause (a) or (b) above without the consent of any
Noteholder so long as the Issuer has (i) received written confirmation from each Note Rating Agency that has rated any Outstanding Notes of the MBNAseries that the change in either of such percentages will not result in a Ratings Effect with
respect to any Outstanding Class A(2005-11) Notes and (ii) delivered to the Indenture Trustee and the Note Rating Agencies a Master Trust Tax Opinion and an Issuer Tax Opinion. 
  
 Section 2.03. Interest Payment. 
  
 (a) For each Interest Payment Date, the amount of interest due with respect to the Class A(2005-11) Notes shall be an amount
equal to the product of (i)(A) a fraction, the numerator of which is the actual number of days in the related Interest Period and the denominator of which is 360, times (B) the Note Interest Rate in effect with respect to the
related Interest Period, times (ii) the Outstanding Dollar Principal Amount of the Class A(2005-11) Notes determined as of the Record Date preceding the related Transfer Date. Interest on the Class A(2005-11) Notes will 
  

 7 

 be calculated on the basis of the actual number of days in the related Interest Period and a 360-day year. 
  
 (b) Pursuant to Section 3.03 of the Indenture Supplement, on each
Transfer Date, the Indenture Trustee shall deposit into the Class A(2005-11) Interest Funding sub-Account the portion of MBNAseries Available Funds allocable to the Class A(2005-11) Notes. 
  
 Section 2.04. Calculation Agent; Determination of LIBOR.

  
 (a) The Issuer hereby agrees that for so long as any Class
A(2005-11) Notes are Outstanding, there shall at all times be an agent appointed to calculate LIBOR for each Interest Period (the “Calculation Agent”). The Issuer hereby initially appoints the Indenture Trustee as the Calculation
Agent for purposes of determining LIBOR for each Interest Period. The Calculation Agent may be removed by the Issuer at any time. If the Calculation Agent is unable or unwilling to act as such or is removed by the Issuer, or if the Calculation Agent
fails to determine LIBOR for an Interest Period, the Issuer shall promptly appoint a replacement Calculation Agent that does not control or is not controlled by or under common control with the Issuer or its Affiliates. The Calculation Agent may not
resign its duties, and the Issuer may not remove the Calculation Agent, without a successor having been duly appointed. 
  
 (b) On each LIBOR Determination Date, the Calculation Agent shall determine LIBOR on the basis of the rate for deposits in United States dollars for a
one-month period which appears on Telerate Page 3750 as of 11:00 a.m., London time, on such date. If such rate does not appear on Telerate Page 3750, the rate for that LIBOR Determination Date shall be determined on the basis of the rates at which
deposits in United States dollars are offered by the Reference Banks at approximately 11:00 a.m., London time, on that day to prime banks in the London interbank market for a one-month period. The Calculation Agent shall request the principal London
office of each of the Reference Banks to provide a quotation of its rate. If at least two such quotations are provided, the rate for that LIBOR Determination Date shall be the arithmetic mean of the quotations. If fewer than two quotations are
provided as requested, the rate for that LIBOR Determination Date will be the arithmetic mean of the rates quoted by four major banks in New York City, selected by the Beneficiary, at approximately 11:00 a.m., New York City time, on that day for
loans in United States dollars to leading European banks for a one-month period. 
  
 (c) The Note Interest Rate applicable to the then current and the immediately preceding Interest Periods may be obtained by telephoning the Indenture Trustee at its corporate trust office at (212) 815-3247 or
such other telephone number as shall be designated by the Indenture Trustee for such purpose by prior written notice by the Indenture Trustee to each Noteholder from time to time. 
  
 (d) On each LIBOR Determination Date, the Calculation Agent shall send to the Indenture Trustee and the Beneficiary, by
facsimile transmission, notification of LIBOR for the following Interest Period. 
  
 Section 2.05. Payments of Interest and Principal. 
  
 (a) Any installment of interest or principal, if any, payable on any Class A(2005-11) Note which is punctually paid or duly provided for by the Issuer and the Indenture Trustee on 
  

 8 

 the applicable Interest Payment Date or Principal Payment Date shall be paid by the Paying Agent to the Person in whose
name such Class A(2005-11) Note (or one or more Predecessor Notes) is registered on the Record Date, by wire transfer of immediately available funds to such Person’s account as has been designated by written instructions received by the Paying
Agent from such Person not later than the close of business on the third Business Day preceding the date of payment or, if no such account has been so designated, by check mailed first-class, postage prepaid to such Person’s address as it
appears on the Note Register on such Record Date, except that with respect to Notes registered on the Record Date in the name of the nominee of Cede & Co., payment shall be made by wire transfer in immediately available funds to the account
designated by such nominee. 
  
 (b) The right of the Class
A(2005-11) Noteholders to receive payments from the Issuer will terminate on the first Business Day following the Class A(2005-11) Termination Date. 
  
 Section 2.06. Form of Delivery of Class A(2005-11) Notes; Depository; Denominations. 
  
 (a) The Class A(2005-11) Notes shall be delivered in the form of a global
Registered Note as provided in Sections 202 and 301(i) of the Indenture, respectively. 
  
 (b) The Depository for the Class A(2005-11) Notes shall be The Depository Trust Company, and the Class A(2005-11) Notes shall initially be registered in
the name of Cede & Co., its nominee. 
  
 (c) The Class
A(2005-11) Notes will be issued in minimum denominations of $5,000 and multiples of $1,000 in excess of that amount. 
  
 Section 2.07. Delivery and Payment for the Class A(2005-11) Notes. The Issuer shall execute and deliver the Class A(2005-11) Notes to the
Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Class A(2005-11) Notes when authenticated, each in accordance with Section 303 of the Indenture. 
  
 Section 2.08. Targeted Deposits to the Accumulation Reserve
Account. 
  
 The deposit targeted to be made to the
Accumulation Reserve Account for any Monthly Period during the Accumulation Reserve Funding Period will be an amount equal to the Required Accumulation Reserve sub-Account Amount. 
  
 [END OF ARTICLE II] 
  

 9 

 ARTICLE III 
  
 Representations and Warranties 
  
 Section 3.01. Issuer’s Representations and Warranties. The Issuer makes the following representations and warranties as to the Collateral
Certificate on which the Indenture Trustee is deemed to have relied in acquiring the Collateral Certificate. Such representations and warranties speak as of the execution and delivery of this Terms Document, but shall survive until the termination
of this Terms Document. Such representations and warranties shall not be waived by any of the parties to this Terms Document unless the Issuer has obtained written confirmation from each Note Rating Agency that there will be no Ratings Effect with
respect to such waiver. 
  
 (a) The Indenture creates a valid and
continuing security interest (as defined in the Delaware UCC) in the Collateral Certificate in favor of the Indenture Trustee, which security interest is prior to all other liens, and is enforceable as such as against creditors of and purchasers
from the Issuer. 
  
 (b) The Collateral Certificate constitutes
either an “account,” a “general intangible,” an “instrument,” or a “certificated security,” each within the meaning of the Delaware UCC. 
  
 (c) At the time of the transfer and assignment of the Collateral Certificate to the Indenture Trustee pursuant to the
Indenture, the Issuer owned and had good and marketable title to the Collateral Certificate free and clear of any lien, claim or encumbrance of any Person. 
  
 (d) The Issuer has caused, within ten days of the execution of the 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 Certificate granted to the Indenture Trustee pursuant to the Indenture. 
  
 (e) Other than the security interest granted to the Indenture Trustee
pursuant to the Indenture, the Issuer has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed the Collateral Certificate. The Issuer has not authorized the filing of and is not aware of any financing statements against
the Issuer that include a description of collateral covering the Collateral Certificate other than any financing statement relating to the security interest granted to the Indenture Trustee pursuant to the Indenture or any financing statement that
has been terminated. The Issuer is not aware of any judgment or tax lien filings against the Issuer. 
  
 (f) All original executed copies of the Collateral Certificate have been delivered to the Indenture Trustee. 
  
 (g) At the time of the transfer and assignment of the Collateral Certificate
to the Indenture Trustee pursuant to the Indenture, the Collateral Certificate had no marks or notations indicating that it has been pledged, assigned or otherwise conveyed to any Person other than the Indenture Trustee. 
  
 [END OF ARTICLE III] 
  

 10 

 IN WITNESS WHEREOF, the parties hereto have caused this Terms Document to be duly executed, all as of the
day and year first above written. 
  

			
	 MBNA CREDIT CARD MASTER NOTE TRUST,
 by MBNA
AMERICA BANK,
 NATIONAL ASSOCIATION, as Beneficiary
 and not in
its individual capacity

		
	By:	 	 /s/ Kevin Sweeney

	 	 	Kevin F. Sweeney
	 	 	First Vice President
	
	 THE BANK OF NEW YORK, as Indenture Trustee
 and not in its individual capacity

		
	By:	 	 /s/ Catherine Cerilles

	Name:	 	Catherine Cerilles
	Title:	 	Assistant Vice President

  
 [Signature Page
to the Class A(2005-11) Terms Document]

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