Document:

Exhibit 4.2

 

 

 

CNH EQUIPMENT TRUST 2011-B

 

TRUST AGREEMENT

 

between

 

CNH CAPITAL RECEIVABLES LLC

 

and

 

WILMINGTON TRUST COMPANY,

 

as Trustee

 

Dated as of September 1, 2011

 

 

 

 

TABLE OF CONTENTS

 

	
ARTICLE I Definitions
    	
1
    
	
 
    	
 
    	
 
    
	
SECTION 1.1
    	
Definitions
    	
1
    
	
SECTION 1.2
    	
Other Definitional Provisions
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE II Organization
    	
2
    
	
 
    	
 
    
	
SECTION 2.1
    	
Name
    	
2
    
	
SECTION 2.2
    	
Office
    	
2
    
	
SECTION 2.3
    	
Purposes and Powers
    	
2
    
	
SECTION 2.4
    	
Appointment of Trustee
    	
2
    
	
SECTION 2.5
    	
Initial Capital Contribution of Trust Estate
    	
2
    
	
SECTION 2.6
    	
Declaration of Trust
    	
3
    
	
SECTION 2.7
    	
Liability of the Certificateholders
    	
3
    
	
SECTION 2.8
    	
Title to Trust Property
    	
3
    
	
SECTION 2.9
    	
Situs of Trust
    	
3
    
	
SECTION 2.10
    	
Representations and Warranties of the Depositor
    	
4
    
	
SECTION 2.11
    	
Federal Income Tax Allocations; Tax Treatment
    	
4
    
	
 
    	
 
    	
 
    
	
ARTICLE III Trust   Certificates and Transfer of Interests
    	
5
    
	
 
    	
 
    
	
SECTION 3.1
    	
Initial Ownership
    	
5
    
	
SECTION 3.2
    	
The Trust Certificates
    	
5
    
	
SECTION 3.3
    	
Authentication of Trust Certificates
    	
5
    
	
SECTION 3.4
    	
Registration of Transfer and Exchange of Trust Certificates
    	
5
    
	
SECTION 3.5
    	
Mutilated, Destroyed, Lost or Stolen Trust Certificates
    	
7
    
	
SECTION 3.6
    	
Persons Deemed Certificateholders
    	
8
    
	
SECTION 3.7
    	
Access to List of Certificateholders’ Names and Addresses
    	
8
    
	
SECTION 3.8
    	
Maintenance of Office or Agency
    	
8
    
	
SECTION 3.9
    	
Appointment of Paying Agent
    	
8
    
	
 
    	
 
    	
 
    
	
ARTICLE IV Actions by   Trustee
    	
9
    
	
 
    	
 
    
	
SECTION 4.1
    	
Prior Notice to Certificateholders With Respect to Certain   Matters
    	
9
    
	
SECTION 4.2
    	
Action By Certificateholders With Respect to Certain   Matters
    	
10
    
	
SECTION 4.3
    	
Action By Certificateholders With Respect to Bankruptcy
    	
10
    
	
SECTION 4.4
    	
Restrictions on Certificateholders’ Power
    	
10
    
	
SECTION 4.5
    	
Majority Control
    	
10
    
	
 
    	
 
    	
 
    
	
ARTICLE V Application of   Trust Funds; Certain Duties
    	
10
    
	
 
    	
 
    
	
SECTION 5.1
    	
Establishment of Trust Account
    	
10
    
	
SECTION 5.2
    	
Applications of Trust Funds
    	
11
    
	
SECTION 5.3
    	
Method of Payment
    	
12
    
	
SECTION 5.4
    	
No Segregation of Monies; No Interest
    	
12
    

 

 

	
SECTION 5.5
    	
Accounting and Reports to the Noteholders,   Certificateholders, the Internal Revenue Service and Others
    	
12
    
	
SECTION 5.6
    	
Signature on Returns; Tax Matters Partner
    	
12
    
	
 
    	
 
    	
 
    
	
ARTICLE VI Authority and   Duties of Trustee
    	
13
    
	
 
    	
 
    
	
SECTION 6.1
    	
General Authority
    	
13
    
	
SECTION 6.2
    	
General Duties
    	
13
    
	
SECTION 6.3
    	
Action upon Instruction
    	
13
    
	
SECTION 6.4
    	
No Duties Except as Specified in This Agreement or in   Instructions
    	
14
    
	
SECTION 6.5
    	
No Action Except Under Specified Documents or Instructions
    	
15
    
	
SECTION 6.6
    	
Restrictions
    	
15
    
	
 
    	
 
    	
 
    
	
ARTICLE VII Concerning the   Trustee
    	
15
    
	
 
    	
 
    
	
SECTION 7.1
    	
Acceptance of Trusts and Duties
    	
15
    
	
SECTION 7.2
    	
Furnishing of Documents
    	
16
    
	
SECTION 7.3
    	
Representations and Warranties
    	
16
    
	
SECTION 7.4
    	
Information to be Provided by the Trustee
    	
17
    
	
SECTION 7.5
    	
Reliance; Advice of Counsel
    	
17
    
	
SECTION 7.6
    	
Not Acting in Individual Capacity
    	
18
    
	
SECTION 7.7
    	
Trustee Not Liable For Trust Certificates or Receivables
    	
18
    
	
SECTION 7.8
    	
Trustee May Not Own Notes
    	
18
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII Compensation of   Trustee
    	
19
    
	
 
    	
 
    
	
SECTION 8.1
    	
Trustee’s Fees and Expenses
    	
19
    
	
SECTION 8.2
    	
Indemnification
    	
19
    
	
SECTION 8.3
    	
Payments to the Trustee
    	
19
    
	
 
    	
 
    	
 
    
	
ARTICLE IX Termination of   Trust Agreement
    	
20
    
	
 
    	
 
    
	
SECTION 9.1
    	
Termination of Trust Agreement
    	
20
    
	
 
    	
 
    	
 
    
	
ARTICLE X Successor Trustees   and Additional Trustees
    	
21
    
	
 
    	
 
    
	
SECTION 10.1
    	
Eligibility Requirements for Trustee
    	
21
    
	
SECTION 10.2
    	
Resignation or Removal of Trustee
    	
21
    
	
SECTION 10.3
    	
Successor Trustee
    	
22
    
	
SECTION 10.4
    	
Merger or Consolidation of Trustee
    	
22
    
	
SECTION 10.5
    	
Appointment of Co-Trustee or Separate Trustee
    	
23
    
	
 
    	
 
    	
 
    
	
ARTICLE XI Miscellaneous
    	
24
    
	
 
    	
 
    
	
SECTION 11.1
    	
Supplements and Amendments
    	
24
    
	
SECTION 11.2
    	
No Legal Title To Trust Estate in Certificateholders
    	
25
    
	
SECTION 11.3
    	
Limitations on Rights of Others
    	
25
    
	
SECTION 11.4
    	
Notices
    	
25
    

 

ii

 

	
SECTION 11.5
    	
Severability
    	
26
    
	
SECTION 11.6
    	
Separate Counterparts
    	
26
    
	
SECTION 11.7
    	
Successors and Assigns
    	
26
    
	
SECTION 11.8
    	
Covenants of The Depositor
    	
26
    
	
SECTION 11.9
    	
No Petition
    	
26
    
	
SECTION 11.10
    	
No Recourse
    	
27
    
	
SECTION 11.11
    	
Headings
    	
27
    
	
SECTION 11.12
    	
Governing Law
    	
27
    
	
SECTION 11.13
    	
Administrator
    	
27
    
	
SECTION 11.14
    	
Information to be Provided by the Trustee
    	
27
    
	
SECTION 11.15
    	
Complete Information
    	
28
    
	
SECTION 11.16
    	
Indemnification
    	
29
    
	
SECTION 11.17
    	
Paying Agent Protection
    	
31
    
	
SECTION 11.18
    	
Communications with Rating Agencies
    	
31
    

 

iii

 

EXHIBITS

 

	
EXHIBIT A
    	
Form of   Trust Certificate
    
	
EXHIBIT B
    	
Form of   Certificate of Trust
    

 

iv

 

TRUST AGREEMENT (as amended or supplemented from time to time, this “Agreement”) dated as of September 1, 2011 between CNH CAPITAL RECEIVABLES LLC, a Delaware limited liability company, as Depositor, and Wilmington Trust Company (“WTC”), a Delaware trust company, as Trustee.

 

ARTICLE I
 Definitions

 

SECTION 1.1                 Definitions.  Capitalized terms used herein and not otherwise defined herein are defined in Appendix A to the Indenture dated as of the date hereof between CNH Equipment Trust 2011-B and Deutsche Bank Trust Company Americas.

 

SECTION 1.2                 Other Definitional Provisions.

 

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

 

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

 

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

 

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

 

(e)           References to any law or regulation refer to that law or regulation as amended from time to time and include any successor law or regulation.

 

(f)            References to any agreement refer to that agreement as from time to time amended or supplemented or as the terms of such agreement are waived or modified in accordance with its terms.

 

(g)           References to any Person include that Person’s successors and assigns.

 

 

ARTICLE II
 Organization

 

SECTION 2.1                 Name.  The Trust created hereby shall be known as “CNH Equipment Trust 2011-B”, in which name the Trustee may conduct the business of the Trust, make and execute contracts and other instruments on behalf of the Trust and sue and be sued.

 

SECTION 2.2                 Office.  The office of the Trust shall be in care of the Trustee at the Corporate Trust Office or at such other address as the Trustee may designate by written notice to the Certificateholders and the Depositor.

 

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

 

(a)           to issue the Notes pursuant to the Indenture and the Trust Certificates pursuant to this Agreement and to sell the Notes and/or the Trust Certificates in one or more transactions;

 

(b)           with the proceeds of the sale of the Notes and/or the Trust Certificates, to purchase the Receivables pursuant to the Sale and Servicing Agreement;

 

(c)           to assign, Grant, transfer, pledge, mortgage and convey the Trust Estate pursuant to the Indenture and to hold, manage and distribute to the Certificateholders pursuant to the Sale and Servicing Agreement any portion of the Trust Estate released from the Lien of, and remitted to the Trust pursuant to, the Indenture;

 

(d)           to enter into and perform its obligations under the Basic Documents to which it is to be a party;

 

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

 

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

 

The Trust shall not engage in any activity other than in connection with the foregoing or other than as required or authorized by this Agreement or the Basic Documents.

 

SECTION 2.4                 Appointment of Trustee.  The Depositor hereby appoints Wilmington Trust Company as Trustee of the Trust effective as of the date hereof, to have all the rights, powers and duties set forth herein.

 

SECTION 2.5                 Initial Capital Contribution of Trust Estate.  The Depositor hereby contributes to the Trustee, as of the date hereof, the sum of $1.00. The Trustee hereby acknowledges receipt in trust from the Depositor, as of the date hereof, of the foregoing contribution, which shall constitute the initial Trust Estate and shall be deposited in the

 

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Certificate Distribution Account. The Depositor shall pay organizational expenses of the Trust as they may arise or shall, upon the request of the Trustee, promptly reimburse the Trustee for any such expenses paid by the Trustee.  The Depositor may also take steps necessary, including the execution and filing of any necessary filings, to ensure that the Trust is in compliance with any applicable State securities law.

 

SECTION 2.6                 Declaration of Trust.  The Trustee hereby declares that it will hold the Trust Estate in trust upon and subject to the conditions set forth herein for the use and benefit of the Certificateholders, subject to the obligations of the Trust under the Basic Documents. It is the intention of the parties hereto that the Trust constitute a statutory trust under the Trust Statute and that this Agreement constitute the governing instrument of such statutory trust.  It is the intention of the parties hereto that, solely for income and franchise tax purposes, until the Trust Certificates are held by a Person other than the Depositor, the Trust be disregarded as an entity separate from the Depositor and the Notes be treated as debt of the Depositor.  At such time that the Trust Certificates are held by more than one Person, it is the intention of the parties hereto that, solely for income and franchise tax purposes, the Trust be treated as a partnership, with the assets of the partnership being the Receivables and other assets held by the Trust, the partners of the partnership being the Certificateholders (including the Depositor (or its successor in interest) in its capacity as recipient of distributions from the Spread Account), and the Notes being debt of the partnership.  The parties agree that, unless otherwise required by appropriate tax authorities, until the Trust Certificates are held by more than one Person the Trust will not file or cause to be filed annual or other necessary returns, reports and other forms consistent with the characterization of the Trust as an entity separate from the Depositor (or other sole owner of the Trust Certificates). Effective as of the date hereof, the Trustee shall have all rights, powers and duties set forth herein and in the Trust Statute with respect to accomplishing the purposes of the Trust.  The Trustee shall file a Certificate of Trust on behalf of the Trust with the Secretary of State pursuant to Section 3810 of the Trust Statute.

 

SECTION 2.7                 Liability of the Certificateholders.  No Certificateholder shall have any personal liability for any liability or obligation of the Trust. The Certificateholders shall be entitled to the same limitation of personal liability extended to stockholders of corporations under the Delaware General Corporation Law.

 

SECTION 2.8                 Title to Trust Property.  Subject to the Lien granted in the Indenture, legal title to all the Trust Estate shall be vested at all times in the Trust as a separate legal entity except where applicable law in any jurisdiction requires title to any part of the Trust Estate to be vested in a trustee or trustees, in which case title shall be deemed to be vested in the Trustee, a co-trustee and/or a separate trustee, as the case may be.

 

SECTION 2.9                 Situs of Trust.  The Trust will be located and administered in the States of Delaware and Pennsylvania and/or in any other states to which the Depositor consents in writing.  All bank accounts maintained by the Trustee on behalf of the Trust shall be located in the State of Delaware or New York and/or in any other states to which the Depositor consents in writing.  The Trust shall not have any employees.  Payments will be received by the Trust only in Delaware or New York and/or in any other states to which the Depositor consents in writing and payments will be made by the Trust only from Delaware or New York and/or in any other states to which the Depositor consents in writing.

 

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SECTION 2.10               Representations and Warranties of the Depositor.  The Depositor hereby represents and warrants to the Trustee that as of the date hereof:

 

(a)           The Depositor is duly organized and validly existing as a limited liability company in good standing under the laws of the State of Delaware, with power and authority to own its properties and to conduct its business as such properties are currently owned and such business is presently conducted.

 

(b)           The Depositor is duly qualified to do business as a foreign limited liability company in good standing, and has obtained all necessary licenses and approvals, in all jurisdictions in which the ownership or lease of property or the conduct of its business shall require such qualifications.

 

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

 

(d)           The consummation of the transactions contemplated by this Agreement and the fulfillment of the terms hereof do not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a default under, the certificate of formation, limited liability company agreement or by-laws of the Depositor, or any indenture, agreement or other instrument to which the Depositor is a party or by which it is bound; or result in the creation or imposition of any Lien upon any of its properties pursuant to the terms of any such indenture, agreement or other instrument (other than pursuant to the Basic Documents); or violate any law or, to the best of the Depositor’s knowledge, any order, rule or regulation applicable to the Depositor of any court or of any federal or State regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Depositor or its properties.

 

(e)           The Depositor has duly executed and delivered this Agreement, and this Agreement constitutes a legal, valid and binding obligation of the Depositor, enforceable in accordance with its terms, except as enforceability may be subject to or limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law).

 

SECTION 2.11               Federal Income Tax Allocations; Tax Treatment.  If the Trust Certificates and interests in the Spread Account are held by more than one Person, this Agreement shall be amended to include such provisions as are required or appropriate under Subchapter K of the Code in order for the Trust to be treated as a partnership whose partners are the beneficial owners of the Trust Certificates and the Depositor (or other holders of interests in the Spread Account).

 

4

 

ARTICLE III
 Trust Certificates and Transfer of Interests

 

SECTION 3.1                 Initial Ownership.  Upon the formation of the Trust by the contribution by the Depositor pursuant to Section 2.5, and until the issuance of the Trust Certificates, the Depositor shall be the sole beneficiary of the Trust; and upon the issuance of the Trust Certificates, the Depositor will no longer be a beneficiary of the Trust, except to the extent that the Depositor is a Certificateholder.

 

SECTION 3.2                 The Trust Certificates.  The Trust Certificates shall be substantially in the form of Exhibit A hereto and shall be executed on behalf of the Trust by manual or facsimile signature of an authorized officer of the Trustee.  Trust Certificates bearing the manual or facsimile signatures of individuals who were, at the time when such signatures shall have been affixed, authorized to sign on behalf of the Trust, shall be, when authenticated pursuant to Section 3.3, validly issued, fully paid, non-assessable and entitled to the benefits of this Agreement, notwithstanding that such individuals or any of them shall have ceased to be so authorized prior to the authentication and delivery of such Trust Certificates or did not hold such offices at the date of authentication and delivery of such Trust Certificates.

 

SECTION 3.3                 Authentication of Trust Certificates.  Concurrently with the sale of the Receivables to the Trust pursuant to the Sale and Servicing Agreement, the Trustee shall cause the Trust Certificate evidencing the 100% beneficial interest in the Trust to be executed on behalf of the Trust, authenticated and delivered to or upon the written order of the Depositor, signed by its chairman of the board, its president, any vice president, any secretary, any assistant secretary, any treasurer, or any assistant treasurer, without further action by the Depositor.  No Trust Certificate shall entitle its holder to any benefit under this Agreement, or shall be valid for any purpose, unless there shall appear on such Trust Certificate a certificate of authentication substantially in the form set forth in Exhibit A, executed by the Trustee by the manual signature of one of its authorized signatories; such certificate of authentication shall constitute conclusive evidence, and the only evidence, that such Trust Certificate shall have been duly authenticated and delivered hereunder. All Trust Certificates shall be dated the date of their authentication.  No further Trust Certificates shall be issued except pursuant to Section 3.4 or 3.5 hereunder.

 

SECTION 3.4                 Registration of Transfer and Exchange of Trust Certificates.  The Trust shall keep or cause to be kept, at the office or agency maintained pursuant to Section 3.8, a register (the “Certificate Register”) in which, subject to such reasonable regulations as it may prescribe, the Trust shall provide for the registration of Trust Certificates and of transfers and exchanges of Trust Certificates.  The Trustee shall be the “Certificate Registrar” for the purpose of registering Trust Certificates and the transfers of Trust Certificates as herein provided.  Upon any resignation of any Certificate Registrar, the Depositor shall promptly appoint a successor or, if it elects not to make such an appointment, assume the duties of the Certificate Registrar.  The initial Trust Certificate shall be registered in the name of “CNH Capital Receivables LLC” as the initial registered owner thereof.

 

Upon surrender for registration of transfer of any Trust Certificate at the office or agency maintained pursuant to Section 3.8, the Trustee shall execute, authenticate and deliver, in the name of the designated transferee or transferees, one or more new Trust Certificates evidencing

 

5

 

such transferee’s beneficial interest in the Trust, which Trust Certificates will be issued in amounts equal, in the aggregate, to the percentage of beneficial interest in the Trust transferred by such transferor.

 

At the option of a Certificateholder, upon surrender of the Trust Certificates to be exchanged at the office or agency maintained pursuant to Section 3.8, a Trust Certificate may be exchanged for a new Trust Certificate evidencing the same percentage of beneficial interest in the Trust as the Trust Certificate so exchanged.  Whenever any Trust Certificates are so surrendered for exchange, the Trustee shall execute, authenticate and deliver the Trust Certificates that the Certificateholder making the exchange is entitled to receive.

 

All Trust Certificates issued upon any registration of transfer or exchange of Trust Certificates shall be entitled to the same benefits under this Agreement as the Trust Certificates surrendered upon such registration of transfer or exchange.

 

Every Trust Certificate presented or surrendered for registration of transfer or exchange shall be duly endorsed by, or be accompanied by a written instrument of transfer in form satisfactory to the Trustee and the Certificate Registrar duly executed by, the Certificateholder thereof or his attorney duly authorized in writing. No transfer of a Trust Certificate shall be registered unless the transferee shall have provided (i) if the transferee is not the Seller or an Affiliate of the Seller and the transferor is not the Seller or an Affiliate of the Seller, an opinion of counsel that no registration is required under the Securities Act of 1933, as amended, or applicable State laws, and (ii) if the transferee is the Seller or an Affiliate of the Seller, an Officer’s Certificate as to compliance with Section 6.6 of the Sale and Servicing Agreement.  Each Trust Certificate surrendered for registration of transfer or exchange shall be canceled and subsequently disposed of by the Trustee in accordance with its customary practice.

 

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

 

The Trust Certificates and any beneficial interest in such Trust Certificates may not be acquired by: (a) an employee benefit plan (as defined in Section 3(3) of ERISA) that is subject to the provisions of Title I of ERISA, (b) a plan described in Section 4975(e)(1) of the Code or (c) any entity whose underlying assets include plan assets of any of the foregoing (each a “Benefit Plan”). By accepting and holding a Trust Certificate or an interest therein, the Certificateholder thereof shall be deemed to have represented and warranted that it is not a Benefit Plan. The Trustee shall have no obligation to determine whether or not a Certificateholder of a Trust Certificate is or is not a Benefit Plan.

 

Notwithstanding any other provision of this Agreement, no transfer of a Trust Certificate or beneficial interest therein shall be allowed, and any such purported transfer shall be void ab initio, if such transfer would cause the Trust to have more than 100 partners within the meaning of Treasury Regulation section 1.7704-1(h)(1).  For purposes of determining the number of partners in the Trust under Treasury Regulation section 1.7704-1(h)(1), a person owning an interest in a partnership, grantor trust, or S corporation (a “flow-through entity”) that owns,

 

6

 

directly or through other flow-through entities, an interest in the Trust, will be treated as a partner in the Trust if more than 50 percent of the value of such person’s interest in the flow-through entity is attributable to the flow-through entity’s interest (direct or indirect) in the Trust.

 

No transfer (or purported transfer) of a Trust Certificate (or any beneficial interest therein), whether to another Certificateholder or to a person who is not a Certificateholder, shall be effective, and any such transfer (or purported transfer) shall be void ab initio, and no person shall otherwise become a Certificateholder, and none of the Trust, the Trustee, the Certificate Registrar or any of the Certificateholders will recognize such transfer (or purported transfer), unless the transferee has first represented and warranted in writing to the Trust that:

 

(A)          it is acquiring the Trust Certificate for its own account and is the sole beneficial owner of such Trust Certificate;

 

(B)           the transfer is not being effected on or through (x) an “established securities market” within the meaning of Section 7704(a)(1) of the Code, including without limitation, an over-the-counter market or an interdealer quotation system that regularly disseminates firm buy or sell quotations or (y) a “secondary market (or the substantial equivalent thereof)” within the meaning of Section 7704(a)(2) of the Code and any proposed, temporary or final Treasury Regulations thereunder; and

 

(C)           such transfer will not cause the Trust to be classified as a publicly traded partnership for U.S. federal income tax purposes, and such purchaser or transferee will not take any action, including any subsequent disposition of such Trust Certificate (or any beneficial interest therein), that would cause the Trust to be treated as a publicly traded partnership for U.S. federal income tax purposes.

 

SECTION 3.5                 Mutilated, Destroyed, Lost or Stolen Trust Certificates.  If:  (a) any mutilated Trust Certificate shall be surrendered to the Certificate Registrar, or if the Certificate Registrar shall receive evidence to its satisfaction of the destruction, loss or theft of any Trust Certificate (provided, that the Trustee shall not be required to verify the evidence provided to it), and (b) there shall be delivered to the Certificate Registrar and the Trustee such security or indemnity as may be required by them to hold each of them harmless, then, in the absence of notice that such Trust Certificate shall have been acquired by a bona fide purchaser, the Trustee on behalf of the Trust shall execute, authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Trust Certificate, a replacement Trust Certificate evidencing the same percentage of beneficial interest in the Trust as the Trust Certificate so mutilated, destroyed, lost or stolen.

 

In connection with the issuance of any replacement Trust Certificate under this Section, the Trustee and the Certificate Registrar may require the payment by the Certificateholder of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith.

 

Any replacement Trust Certificate issued pursuant to this Section in replacement of any mutilated, destroyed, lost or stolen Trust Certificate shall constitute conclusive evidence of ownership in the Trust, as if originally issued, whether or not the mutilated, lost, stolen or

 

7

 

destroyed Trust Certificate shall be found at any time, and shall be entitled to all the benefits of this Agreement.

 

SECTION 3.6                 Persons Deemed Certificateholders.  Prior to due presentation of a Trust Certificate for registration of transfer of any Trust Certificate, the Trustee or the Certificate Registrar may treat the Person in whose name any Trust Certificate shall be registered in the Certificate Register (as of the day of determination) as the owner of such Trust Certificate for the purpose of receiving distributions pursuant to Section 5.2 and for all other purposes whatsoever, and neither the Trustee nor the Certificate Registrar shall be bound by any notice to the contrary.

 

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

 

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

 

SECTION 3.9                 Appointment of Paying Agent.  The Paying Agent (or the Trustee if the Notes have been paid in full) shall make distributions to Certificateholders from the Certificate Distribution Account pursuant to Section 5.2 and the Indenture Trustee as Paying Agent shall report the amounts of such distributions to the Trustee. Any Paying Agent shall have the revocable power to withdraw funds from the Certificate Distribution Account for the purpose of making the distributions referred to above. The Trustee may revoke such power and remove the Paying Agent if the Trustee determines in its sole discretion that the Paying Agent shall have failed to perform its obligations under this Agreement in any material respect.  The Paying Agent shall initially be the Indenture Trustee, and any co-paying agent chosen by and acceptable to the Trustee.  The Paying Agent shall be permitted to resign as Paying Agent upon 30 days’ written notice to the Trustee. In the event that the Indenture Trustee shall not be the Paying Agent, the

 

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Trustee shall appoint a successor to act as Paying Agent (which shall be a bank or trust company).  The Trustee shall cause such successor Paying Agent or any additional Paying Agent appointed by the Trustee to execute and deliver to the Trustee an instrument in which such successor Paying Agent or additional Paying Agent (other than the Indenture Trustee or the Trustee as Paying Agent) shall agree with the Trustee that as Paying Agent, such successor Paying Agent or additional Paying Agent will hold all sums, if any, held by it for payment to the Certificateholders in trust for the benefit of the Certificateholders entitled thereto until such sums shall be paid to such Certificateholders.  The Paying Agent shall return all unclaimed funds to the Trustee and upon removal of a Paying Agent such Paying Agent shall also return all funds in its possession to the Trustee.  The provisions of Sections 7.1, 7.3, 7.4 and 8.1 shall apply to the Indenture Trustee or Trustee to the extent the Indenture Trustee or Trustee is a Paying Agent, for so long as the Indenture Trustee or Trustee, as applicable, shall act as Paying Agent and, to the extent applicable, to any other paying agent appointed hereunder. Any reference in this Agreement to the Paying Agent shall include any co-paying agent unless the context requires otherwise.

 

ARTICLE IV
 Actions by Trustee

 

SECTION 4.1                 Prior Notice to Certificateholders With Respect to Certain Matters.  With respect to the following matters, the Trustee shall not take action unless, at least 30 days before the taking of such action (or such shorter period as shall be agreed to in writing by all Certificateholders), the Trustee shall have notified the Certificateholders in writing of the proposed action and the Certificateholders shall not have notified the Trustee in writing prior to the 30th day (or such agreed upon shorter period) after such notice is given that such Certificateholders have withheld consent or shall not have provided alternative direction:

 

(a)           the initiation of any claim or lawsuit by the Trust (except claims or lawsuits brought in connection with the collection of the Receivables) and the compromise of any action, claim or lawsuit brought by or against the Trust (except with respect to the aforementioned claims or lawsuits for collection of Receivables);

 

(b)           the amendment of the Indenture in circumstances where the consent of any Noteholder is not required and such amendment materially adversely affects the interest of the Certificateholders;

 

(c)           the amendment, change or modification of the Administration Agreement, except to cure any ambiguity or to amend or supplement any provision in a manner, or add any provision, that would not materially adversely affect the interests of the Certificateholders; or

 

(d)           the appointment pursuant to the Indenture of a successor Note Registrar, Paying Agent or Indenture Trustee, or pursuant to this Agreement of a successor Certificate Registrar (other than the Trustee), or the consent to the assignment by the Note Registrar, Paying Agent or Indenture Trustee or Certificate Registrar (other than to the Trustee) of its obligations under the Indenture or this Agreement, as applicable.

 

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SECTION 4.2                 Action By Certificateholders With Respect to Certain Matters.  The Trustee shall not have the power, except upon the direction of the Certificateholders, to: (a) remove the Administrator under the Administration Agreement, (b) appoint a successor Administrator, (c) remove the Servicer under the Sale and Servicing Agreement; or (d) except as expressly provided in the Basic Documents, sell the Receivables after the termination of the Indenture. The Trustee shall take the actions referred to in the preceding sentence only upon written instructions signed by the Certificateholders.

 

SECTION 4.3                 Action By Certificateholders With Respect to Bankruptcy.  The Trustee shall not have the power to commence a voluntary proceeding in bankruptcy relating to the Trust (i) until one year and one day after the Outstanding Amount of all the Notes has been reduced to zero and (ii) without the unanimous prior approval of all Certificateholders and (iii) without the delivery to the Trustee by each such Certificateholder of a certificate certifying that such Certificateholder reasonably believes that the Trust is insolvent.

 

SECTION 4.4                 Restrictions on Certificateholders’ Power.  The Certificateholders shall not direct the Trustee to take or refrain from taking any action if such action or inaction would be contrary to any obligation of the Trust or the Trustee under this Agreement or any of the Basic Documents or would be contrary to Section 2.3, nor shall the Trustee be obligated to follow any such direction, if given.

 

SECTION 4.5                 Majority Control.  Except as expressly provided herein, any action that may be taken by the Certificateholders under this Agreement may be taken by the Certificateholders holding in the aggregate more than 50% of the beneficial interest in the Trust at the time of such action. Except as expressly provided herein, any written notice of the Certificateholders delivered pursuant to this Agreement shall be effective if signed by Certificateholders holding in the aggregate more than 50% of the beneficial interest in the Trust at the time of such action.

 

ARTICLE V
 Application of Trust Funds; Certain Duties

 

SECTION 5.1                 Establishment of Trust Account.  The Trustee or the Paying Agent on the Trust’s behalf, for the benefit of the Certificateholders, shall establish and maintain in the name of the Trust an Eligible Deposit Account (the “Certificate Distribution Account”), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Certificateholders.

 

The Trust shall possess all right, title and interest in all funds on deposit from time to time in the Certificate Distribution Account and in all proceeds thereof. Except as otherwise expressly provided herein, the Certificate Distribution Account shall be under the sole dominion and control of the Trustee or the Paying Agent for the benefit of the Certificateholders.  If, at any time, the Certificate Distribution Account ceases to be an Eligible Deposit Account, the Trustee or the Paying Agent on the Trust’s behalf (or the Depositor on behalf of the Trustee, if the Certificate Distribution Account is not then held by the initial Paying Agent or the Trustee or an affiliate thereof) shall, within 10 Business Days (or such longer period, not to exceed 30 calendar days, as to which the Rating Agency Condition shall be satisfied), establish a new Certificate

 

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Distribution Account as an Eligible Deposit Account and shall transfer any cash and/or any investments to such new Certificate Distribution Account.

 

SECTION 5.2                 Applications of Trust Funds.

 

(a)           On each Payment Date, the Indenture Trustee (if any Notes are Outstanding) or the Trustee (if the Notes have been paid in full) will distribute to Certificateholders, on a pro rata basis, amounts deposited in the Certificate Distribution Account pursuant to Section 5.6 of the Sale and Servicing Agreement.

 

(b)           On each Payment Date, the Indenture Trustee or the Trustee, as applicable, shall make available using its internet website or shall send to each Certificateholder the statement provided to the Indenture Trustee or the Trustee, as applicable, by the Servicer pursuant to Section 5.11 of the Sale and Servicing Agreement.

 

(c)           In the event that any withholding tax is imposed on the Trust’s payment (or allocations of income) to a Certificateholder, such tax shall reduce the amount otherwise distributable to the Certificateholder in accordance with this Section.  The Indenture Trustee and the Trustee, as applicable, are hereby authorized and directed to retain from amounts otherwise distributable to the Certificateholders sufficient funds for the payment of any tax that is legally owed by the Trust (but such authorization shall not prevent the Indenture Trustee or the Trustee, as applicable, from contesting any such tax in appropriate proceedings, and withholding payment of such tax, if permitted by law, pending the outcome of such proceedings).  The amount of any withholding tax imposed with respect to a Certificateholder shall be treated as cash distributed to such Certificateholder at the time it is withheld by the Trust. If there is a possibility that withholding tax is payable with respect to a distribution (such as a distribution to a non-U.S. Certificateholder), the Indenture Trustee or the Trustee, as applicable, may, in its sole discretion, withhold such amounts in accordance with this paragraph (c).  Notwithstanding any other provision of this Agreement, the Trust shall withhold and pay over to the Internal Revenue Service, pursuant to Sections 1441, 1442 and 1446 of the Code (or any successor provisions or any other provision as may be enacted into law), at such times as required by such provisions, such amounts as the Trust is required to withhold under such provision on account of any foreign Certificateholder’s distributive share of income of the Trust, as if the entire amount of such foreign Certificateholder’s distributive share of such income is subject to withholding tax pursuant to such provisions.  To the extent that a foreign Certificateholder claims to be entitled to a reduced rate of, or exemption from, U.S. withholding tax pursuant to an applicable income tax treaty, or otherwise, such foreign Certificateholder shall furnish the Depositor and the Trustee with such information and forms as it may require and are necessary to comply with the regulations governing the obligations of withholding tax agents, which the Depositor may forward to the Indenture Trustee.  Each foreign Certificateholder represents and warrants that any such information and form furnished by it shall be true and accurate and agrees to indemnify the Trust and each of the other Certificateholders from any and all damages, costs and expenses resulting from the filing of inaccurate or incomplete information or forms relating to such withholding

 

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taxes.  In the event that a Certificateholder wishes to apply for a refund of any such withholding tax, the Indenture Trustee or the Trustee, as applicable, shall reasonably cooperate with such Certificateholder in making such claim so long as such Certificateholder agrees to reimburse the Indenture Trustee or the Trustee, as applicable, for any out-of-pocket expenses incurred.

 

SECTION 5.3                 Method of Payment.  Subject to Section 9.1(c), distributions required to be made to Certificateholders on any Payment Date shall be made to each Certificateholder of record on the preceding Record Date either by wire transfer, in immediately available funds, to the account of such Certificateholder at a bank or other entity having appropriate facilities therefor, if such Certificateholder shall have provided to the Certificate Registrar appropriate written instructions at least five Business Days prior to such Payment Date and such Certificateholder’s Trust Certificates aggregate not less than $1,000,000, or, if not, by check mailed to such Certificateholder at the address of such Certificateholder appearing in the Certificate Register.

 

SECTION 5.4                 No Segregation of Monies; No Interest.  Subject to Sections 5.1 and 5.2, monies received by the Trustee or the Paying Agent hereunder need not be segregated in any manner except to the extent required by law or the Sale and Servicing Agreement and may be deposited under such general conditions as may be prescribed by law, and the Trustee or the Paying Agent, as applicable, shall not be liable for any interest thereon.

 

SECTION 5.5                 Accounting and Reports to the Noteholders, Certificateholders, the Internal Revenue Service and Others.  The Depositor or, if any Trust Certificates are held by any Person other than the Depositor or its Affiliate, the Trustee, shall: (a) maintain (or cause to be maintained) the books of the Trust on a calendar year basis on the accrual method of accounting, (b) deliver to each Certificateholder, as may be required by the Code and applicable Treasury Regulations, such information as may be required (including Schedule K-1, if applicable) to enable each Certificateholder to prepare its federal, State and local income tax returns, (c) file such tax returns relating to the Trust (including, if applicable, a partnership information return on Internal Revenue Service Form 1065 or its successor), and make such elections as may from time to time be required or appropriate under any applicable State or federal statute or rule or regulation thereunder so as to maintain the Trust’s characterization as a disregarded entity or partnership for federal income tax purposes, as applicable, (d) cause such tax returns to be signed in the manner required by law and (e) collect or cause to be collected any withholding tax as described in and in accordance with Section 5.2(c) with respect to income or distributions to Certificateholders.  The Trustee shall elect under Section 1278 of the Code to include in income currently any market discount that accrues with respect to the Receivables and shall elect under Section 171 of the Code to amortize any bond premium with respect to the Receivables.  The Trustee shall not make the election provided under Section 754 of the Code.

 

SECTION 5.6                 Signature on Returns; Tax Matters Partner.

 

(a)           The Depositor, or if any Trust Certificates are held by any Person other than the Depositor, the Trustee shall sign on behalf of the Trust the tax returns of the Trust, unless applicable law requires a Certificateholder to sign such documents, in which case such documents shall be signed by such Certificateholder.

 

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(b)           In the event the Trust is characterized as a partnership, in accordance with Section 2.6, the Depositor shall be designated the “tax matters partner” of the Trust pursuant to Section 6231(a)(7)(A) of the Code and applicable Treasury Regulations.

 

ARTICLE VI
 Authority and Duties of Trustee

 

SECTION 6.1                 General Authority.  The Trustee is authorized and directed to execute and deliver the Basic Documents to which the Trust is to be a party and each certificate or other document attached as an exhibit to or contemplated by the Basic Documents to which the Trust is to be a party, in each case in such form as the Depositor shall approve as evidenced conclusively by the Trustee’s execution thereof, and, on behalf of the Trust, to direct the Indenture Trustee to authenticate and deliver the Notes in the aggregate principal amount specified in a letter of instruction from the Depositor to the Trustee.  In addition to the foregoing, the Trustee is authorized, but shall not be obligated, to take all actions required of the Trust pursuant to the Basic Documents.  The Trustee is further authorized from time to time to take such action as the Administrator recommends with respect to the Basic Documents.

 

SECTION 6.2                 General Duties.  It shall be the duty of the Trustee to discharge (or cause to be discharged) all of its responsibilities pursuant to this Agreement and the Basic Documents to which the Trust is a party and to administer the Trust in the interest of the Certificateholders, subject to the Basic Documents and in accordance with this Agreement. Notwithstanding the foregoing, the Trustee shall be deemed to have discharged its duties and responsibilities hereunder and under the Basic Documents to the extent the Administrator has agreed in the Administration Agreement to perform any act or to discharge any duty of the Trustee hereunder or under any Basic Document, and the Trustee shall not be held liable for the default or failure of the Administrator to carry out its obligations under the Administration Agreement.

 

SECTION 6.3                 Action upon Instruction.

 

(a)           Subject to Article IV and in accordance with the Basic Documents, the Certificateholders may by written instruction direct the Trustee in the management of the Trust. Such direction may be exercised at any time by written instruction of the Certificateholders pursuant to Article IV.

 

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

 

(c)           Whenever the Trustee is unable to decide between alternative courses of action permitted or required by this Agreement or any Basic Document, the Trustee shall promptly give notice (in such form as shall be appropriate under the circumstances) to the Certificateholders requesting instruction as to the course of action to be adopted, and to the extent the Trustee acts in good faith in accordance with any

 

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

 

(d)           In the event that the Trustee is unsure as to the application of any provision of this Agreement or any Basic Document or any such provision is ambiguous as to its application, or is, or appears to be, in conflict with any other applicable provision, or in the event that this Agreement permits any determination by the Trustee or is silent or is incomplete as to the course of action that the Trustee is required to take with respect to a particular set of facts, the Trustee may give notice (in such form as shall be appropriate under the circumstances) to the Certificateholders requesting instruction and, to the extent that the Trustee acts or refrains from acting in good faith in accordance with any such instruction received, the Trustee shall not be liable, on account of such action or inaction, to any Person.  If the Trustee shall not have received appropriate instruction within 10 days of such notice (or within such shorter period of time as reasonably may be specified in such notice or may be necessary under the circumstances) it may, but shall be under no duty to, take or refrain from taking such action, not inconsistent with this Agreement or the Basic Documents, as it shall deem to be in the best interests of the Certificateholders, and shall have no liability to any Person for such action or inaction.

 

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

 

Further, notwithstanding anything to the contrary herein or in any other document, the Trustee shall not be required to execute, deliver or certify on behalf of the Trust, the Servicer, the Depositor or any other Person any filings, certificates, affidavits or other instruments required under Section 302 of the Sarbanes-Oxley Act of 2002.  Notwithstanding any Person’s right to instruct the Trustee, neither the Trustee nor any agent, employee, director or officer of the

 

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Trustee shall have any obligation to execute any certificates or other documents required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 or the rules and regulations promulgated thereunder, and the refusal to comply with any such instructions shall not constitute a default or breach under this Agreement or any other document in connection herewith.

 

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

 

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

 

ARTICLE VII
 Concerning the Trustee

 

SECTION 7.1                 Acceptance of Trusts and Duties.  The Trustee accepts the trusts hereby created and agrees to perform its duties hereunder with respect to such trusts but only upon the terms of this Agreement. The Trustee also agrees to disburse all monies actually received by it constituting part of the Trust Estate upon the terms of the Basic Documents and this Agreement. The Trustee shall not be answerable or accountable hereunder or under any Basic Document under any circumstances, except: (i) for its own willful misconduct or negligence or (ii) in the case of the inaccuracy of any representation or warranty contained in Section 7.3 expressly made by the Trustee. In particular, but not by way of limitation (and subject to the exceptions set forth in the preceding sentence):

 

(a)           the Trustee shall not be liable for any error of judgment made in good faith by a responsible officer of the Trustee unless it is proved that the Trustee was negligent in ascertaining the pertinent facts;

 

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

 

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

 

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

 

(e)           the Trustee shall not be responsible for or in respect of the validity or sufficiency of this Agreement or for the due execution hereof by the Depositor or for the form, character, genuineness, sufficiency, value or validity of any of the Trust Estate or for or in respect of the validity or sufficiency of the Basic Documents, other than the certificate of authentication on the Trust Certificates, and the Trustee shall in no event assume or incur any liability, duty or obligation to any Noteholder or to any Certificateholder, other than as expressly provided for herein and in the Basic Documents;

 

(f)            the Trustee shall not be liable for the default or misconduct of the Administrator, the Depositor, the Indenture Trustee or the Servicer under any of the Basic Documents or otherwise and the Trustee shall have no obligation or liability to perform the obligations of the Trust under this Agreement or the Basic Documents that are required to be performed by the Administrator under the Administration Agreement, the Indenture Trustee under the Indenture or the Servicer under the Sale and Servicing Agreement; and

 

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

 

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

 

SECTION 7.3                 Representations and Warranties.  The Trustee hereby represents and warrants to the Depositor, for the benefit of the Certificateholders, that as of the date hereof (other than with respect to Section 7.3(e), which is as of the dates specified therein):

 

(a)           it is a banking corporation duly organized and validly existing in good standing under the laws of the State of Delaware, with the requisite corporate power and authority to execute, deliver and perform its obligations under this Agreement,

 

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

 

(c)           the execution and delivery of this Agreement, the consummation of the transactions contemplated by this Agreement and the fulfillment of the terms hereof do not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a default under, the certificate of incorporation or by-laws of the Trustee, or to the best of its knowledge without independent investigation any indenture, agreement or other instrument to which the Trustee is a party or by which it is bound; or violate any federal or State law governing the banking or trust powers of the Trustee; or, to the best of the Trustee’s knowledge, violate any order, rule or regulation applicable to the Trustee of any court or of any federal or State regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Trustee or its properties,

 

(d)           this Agreement, assuming due authorization, execution and delivery by the Depositor, constitutes a valid, legal and binding obligation of the Trustee, enforceable against it in accordance with the terms hereof subject to applicable bankruptcy, insolvency, reorganization, moratorium and other laws affecting the enforcement of creditors’ rights generally and to general principles of equity, regardless of whether such enforcement is considered in a proceeding in equity or at law, and

 

(e)           as of the date of the Underwriting Agreement, the Preliminary Prospectus Date, the Prospectus Date and the Closing Date, to its knowledge without independent investigation, there are no legal proceedings pending against the Trustee, or of which any property of the Trustee is subject, that are material to the Noteholders, and to the knowledge of the Trustee no such legal proceedings are contemplated by any governmental authority.

 

SECTION 7.4                 Information to be Provided by the Trustee.  The Trustee shall notify the Depositor promptly after the Trustee becomes aware of (a) the initiation of any legal proceedings against the Trustee, or of which any property of the Trustee is subject, that are material to the Noteholders, (b) any developments in any such proceedings that are material to the Noteholders and (c) any such proceedings that are contemplated by any governmental authority.

 

SECTION 7.5                 Reliance; Advice of Counsel.  (a) Except to the extent otherwise provided in Section 7.1, the Trustee shall incur no liability to anyone in acting upon any signature, instrument, notice, resolution, request, consent, order, certificate, report, opinion, bond or other document or paper (whether in its original or facsimile form) believed by it to be genuine and believed by it to be signed by the proper party or parties. The Trustee may accept a certified copy of a resolution of the board of directors or other governing body of any party as conclusive evidence that such resolution has been duly adopted by such body and that the same is in full force and effect. As to any fact or matter the method of the determination of which is not specifically prescribed herein, the Trustee may for all purposes hereof rely on a certificate,

 

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signed by the president, any vice president, any treasurer, any assistant treasurer, any secretary, any assistant secretary or other authorized officers of the relevant party as to such fact or matter, and such certificate shall constitute full protection to the Trustee for any action taken or omitted to be taken by it in good faith in reliance thereon.

 

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

 

SECTION 7.6                 Not Acting in Individual Capacity.  Except as provided in this Article VII, in accepting the trusts hereby created Wilmington Trust Company acts solely as Trustee hereunder and not in its individual capacity and all Persons having any claim against the Trustee by reason of the transactions contemplated by this Agreement or any Basic Document shall look only to the Trust Estate for payment or satisfaction thereof.

 

SECTION 7.7                 Trustee Not Liable For Trust Certificates or Receivables.  The recitals contained herein and in the Trust Certificates (other than the signature and counter-signature of the Trustee on the Trust Certificates) shall be taken as the statements of the Depositor, and the Trustee assumes no responsibility for the correctness thereof.  The Trustee makes no representations as to the validity or sufficiency of this Agreement, of any Basic Document, of the Trust Certificates (other than the signature and countersignature, if any, of the Trustee on the Trust Certificates) or of the Notes, or of any Receivable or related documents.  The Trustee shall at no time have any responsibility or liability for or with respect to the legality, validity and enforceability of any Receivable, or the perfection and priority of any security interest created by any Receivable in any of the Financed Equipment or the maintenance of any such perfection and priority, or for or with respect to the sufficiency of the Trust Estate or its ability to generate the payments to be distributed to Certificateholders under this Agreement or the Noteholders under the Indenture, including: (a) the existence, condition and ownership of any Financed Equipment, (b) the existence and enforceability of any insurance thereon, (c) the existence and contents of any Receivable on any computer or other record thereof, (d) the validity of the assignment of any Receivable to the Trust or of any intervening assignment, (e) the completeness of any Receivable, (f) the performance or enforcement of any Receivable, and (g) the compliance by the Depositor or the Servicer with any warranty or representation made under any Basic Document or in any related document or the accuracy of any such warranty or representation or any action of the Administrator, the Indenture Trustee or the Servicer or any subservicer taken in the name of the Trustee.

 

SECTION 7.8                 Trustee May Not Own Notes.  The Trustee shall not, in its individual capacity, but may in a fiduciary capacity, become the owner or pledgee of Notes or otherwise

 

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extend credit to the Issuing Entity.  The Trustee may otherwise deal with the Depositor, the Administrator, the Indenture Trustee and the Servicer with the same rights as it would have if it were not the Trustee.

 

ARTICLE VIII
 Compensation of Trustee

 

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

 

SECTION 8.2                 Indemnification.  The Depositor shall be liable as primary obligor for, and shall indemnify the Trustee and its successors, assigns, agents and servants (collectively, the “Indemnified Parties”) from and against, any and all liabilities, obligations, losses, damages, taxes, claims, actions and suits, and any and all reasonable costs, expenses and disbursements (including reasonable legal fees and expenses) of any kind and nature whatsoever (collectively, “Expenses”), which may at any time be imposed on, incurred by or asserted against the Trustee or any other Indemnified Party in any way relating to or arising out of this Agreement, the Basic Documents, the Trust Estate, the administration of the Trust Estate or the action or inaction of the Trustee hereunder, except only that the Depositor shall not be liable for or required to indemnify an Indemnified Party from and against Expenses arising or resulting from: (a) such Indemnified Party’s willful misconduct or negligence, (b) with respect to the Trustee, the inaccuracy of any representation or warranty contained in Section 7.3 expressly made by the Trustee or (c) any tax imposed on an Indemnified Party based on, measured by or with respect to the net or gross income, capital or net worth, gross or net receipts, franchise, excess profits or conduct of business by such Indemnified Party (including, but not limited to, taxes imposed on, measured by, or with respect to any fees or compensation received by the Trustee hereunder).  The indemnities contained in this Section shall survive the resignation or termination of the Trustee or the termination of this Agreement. In any event of any claim, action or proceeding for which indemnity will be sought pursuant to this Section, the Trustee’s choice of legal counsel shall be subject to the approval of the Depositor, which approval shall not be unreasonably withheld.

 

SECTION 8.3                 Payments to the Trustee.  Any amounts paid to the Trustee pursuant to this Article VIII shall be deemed not to be a part of the Trust Estate immediately after such payment.  The Trustee shall also be entitled to interest on all fees and expenses that are due and unpaid for more than sixty (60) days after they have been billed to the party responsible for the payment of such amounts at a rate equal to the rate publicly announced by Wilmington Trust Company as its prime rate from time to time.

 

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ARTICLE IX
 Termination of Trust Agreement

 

SECTION 9.1                 Termination of Trust Agreement.  (a) The Trust shall dissolve upon the final distribution by the Trustee of all monies or other property or proceeds of the Trust Estate in accordance with the Indenture, the Sale and Servicing Agreement and Article V.  The bankruptcy, liquidation, dissolution, death or incapacity of any Certificateholder shall not: (x) operate to dissolve or terminate this Agreement or the Trust, (y) entitle such Certificateholder’s legal representatives or heirs to claim an accounting or to take any action or proceeding in any court for a partition or winding up of all or any part of the Trust or Trust Estate or (z) otherwise affect the rights, obligations and liabilities of the parties hereto.

 

(b)           Except as provided in Section 9.1(a), neither the Depositor nor any Certificateholder shall be entitled to dissolve, revoke or terminate the Trust; provided  however, for the sake of clarity, no action is necessary by the Depositor, the Certificateholder or any other Person as a prerequisite for a dissolution under Section 9.1(a) to occur.

 

(c)           Notice of any anticipated dissolution of the Trust, specifying the Payment Date upon which the Certificateholders shall surrender their Trust Certificates to the Paying Agent for payment of the final distribution and cancellation, shall be given promptly by the Trustee by letter to Certificateholders mailed within five Business Days of receipt of notice of such anticipated dissolution from the Servicer given pursuant to Section 9.1(c) of the Sale and Servicing Agreement, and such notice from the Trustee shall state: (i) the Payment Date upon which final payment of the Trust Certificates shall be made upon presentation and surrender of the Trust Certificates at the office of the Paying Agent therein designated, (ii) the amount of any such final payment and (iii) that the Record Date otherwise applicable to such Payment Date is not applicable, payments being made only upon presentation and surrender of the Trust Certificates at the office of the Paying Agent therein specified.  The Trustee shall give such notice to the Certificate Registrar (if other than the Trustee) and the Paying Agent at the time such notice is given to Certificateholders. Upon presentation and surrender of the Trust Certificates, the Paying Agent shall cause to be distributed to Certificateholders amounts distributable on such Payment Date pursuant to Section 5.2.

 

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

 

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(d)           Upon the dissolution of the Trust and the payment of all liabilities of the Trust in accordance with applicable law, the Trustee shall cause the Certificate of Trust to be canceled by filing a certificate of cancellation with the Secretary of State in accordance with the provisions of Section 3810 (or successor section) of the Trust Statute, at which time the Trust and this Agreement (other than Article VIII) shall terminate.

 

ARTICLE X
 Successor Trustees and Additional Trustees

 

SECTION 10.1               Eligibility Requirements for Trustee.  The Trustee shall at all times:  (a) be a corporation satisfying the provisions of Section 26(a)(1) of the Investment Company Act of 1940, as amended, (b) be authorized to exercise corporate trust powers, (c) have a combined capital and surplus of at least $50,000,000 and be subject to supervision or examination by federal or State authorities, and (d) have (or have a parent that has) a rating of at least “Baa3” by Moody’s.  If such corporation shall publish reports of condition at least annually, pursuant to law or the requirements of the aforesaid supervising or examining authority, then for the purpose of this Section, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. At all times, at least one Trustee of the Trust shall satisfy the requirements of Section 3807(a) of the Trust Statute. In case at any time the Trustee shall cease to be eligible in accordance with this Section, the Trustee shall resign immediately in the manner and with the effect specified in Section 10.2.

 

SECTION 10.2               Resignation or Removal of Trustee.

 

(a)           The Trustee may at any time resign and be discharged from the trusts hereby created by giving written notice thereof to the Administrator.  Upon receiving such notice of resignation, the Administrator shall promptly appoint a successor Trustee by written instrument, in duplicate, one copy of which instrument shall be delivered to the resigning Trustee and one copy to the successor Trustee.  Other than such instrument, and as provided in Section 10.2(b) and 10.3 below, no other documentation or action shall be required, and notwithstanding anything to the contrary herein or in the Basic Documents, no consent shall be required of any Person with respect to such appointment or entering into any such agreement, and the amendment provisions hereof will not apply to such instrument.  If no successor Trustee shall have been so appointed and have accepted appointment within 30 days after the giving of such notice of resignation, the resigning Trustee may petition at the expense of the Administrator any court of competent jurisdiction for the appointment of a successor Trustee.

 

If at any time the Trustee shall cease to be eligible in accordance with Section 10.1 and shall fail to resign after written request therefor by the Administrator, or if at any time the Trustee shall be legally unable to act, or shall be adjudged bankrupt or insolvent, or a receiver of the Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, then the Administrator may remove the Trustee.  If the Administrator shall remove the Trustee under the authority of the preceding sentence, the Administrator shall promptly

 

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appoint a successor Trustee by written instrument, in duplicate, one copy of which instrument shall be delivered to the outgoing Trustee so removed and one copy to the successor Trustee, and pay all fees owed to the outgoing Trustee.  Other than such instrument, and as provided in Section 10.2(b) and 10.3 below, no other documentation or action shall be required, and notwithstanding anything herein or in the Basic Documents to the contrary, no consent shall be required of any Person with respect to such appointment or entering into any such agreement, and the amendment provisions hereof will not apply to such instrument.

 

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

 

SECTION 10.3               Successor Trustee.  Any successor Trustee appointed pursuant to Section 10.2 shall execute, acknowledge and deliver to the Administrator and to its predecessor Trustee an instrument accepting such appointment under this Agreement, and thereupon the resignation or removal of the predecessor Trustee shall become effective and such successor Trustee, without any further act, deed or conveyance, shall become fully vested with all the rights, powers, duties, and obligations of its predecessor under this Agreement, with like effect as if originally named as the Trustee.  Such instrument shall identify the situs of the Trust, locations where payments will be made and/or received, and where bank accounts will be maintained for purposes of Section 2.9 hereof, if such locations are to change following such appointment.  As of the effective date of such instrument, Section 2.9 hereof shall be read to include such locations identified in such instrument. The predecessor Trustee shall upon payment of its fees and expenses deliver to the successor Trustee all documents and statements and monies held by it under this Agreement; and the Administrator and the predecessor Trustee shall execute and deliver such instruments and do such other things as may reasonably be required for fully and certainly vesting and confirming in the successor Trustee all such rights, powers, duties and obligations.

 

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

 

Upon acceptance of appointment by a successor Trustee pursuant to this Section, the Administrator shall mail notice of such appointment to all Certificateholders, the Indenture Trustee, the Noteholders and the Rating Agencies.  If the Administrator shall fail to mail such notice within 10 days after acceptance of appointment by the successor Trustee, the successor Trustee shall cause such notice to be mailed at the expense of the Administrator. Any successor Trustee shall file an amendment to the Certificate of Trust as required by the Statutory Trust Act.

 

SECTION 10.4               Merger or Consolidation of Trustee.  Any corporation or other entity into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder; provided, such corporation shall be eligible pursuant to Section 10.1, without the execution or filing of any instrument or any further

 

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act on the part of any of the parties hereto, anything herein to the contrary notwithstanding; and provided further, that the Trustee shall mail notice of such merger or consolidation to the Rating Agencies subject to Section 11.18.

 

SECTION 10.5               Appointment of Co-Trustee or Separate Trustee.  Notwithstanding any other provisions of this Agreement, at any time, for the purpose of meeting any legal requirements of any jurisdiction in which any part of the Trust or any Financed Equipment may at the time be located, the Administrator and the Trustee acting jointly shall have the power and may execute and deliver all instruments to appoint one or more Person(s) approved by the Trustee to act as co-trustee(s), jointly with the Trustee, or separate trustee(s), of all or any part of the Trust Estate, and to vest in such Person(s), in such capacity and for the benefit of the Certificateholders, such title to the Trust Estate, or any part thereof, and, subject to the other provisions of this Section, such powers, duties, obligations, rights and trusts as the Administrator and the Trustee may consider necessary or desirable.  If the Administrator shall not have joined in such appointment within 15 days after the receipt by it of a request so to do, the Trustee alone shall have the power to make such appointment.  No co-trustee or separate trustee under this Agreement shall be required to meet the terms of eligibility as a successor trustee pursuant to Section 10.1 and no notice of the appointment of any co-trustee or separate trustee shall be required pursuant to Section 10.3.

 

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

 

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

 

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

 

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

 

Any notice, request or other writing given to the Trustee shall be deemed to have been given to each of the then separate trustees and co-trustees, as effectively as if given to each of them. Every instrument appointing any separate trustee or co-trustee shall refer to this Agreement and the conditions of this Article. Each separate trustee and co-trustee, upon its acceptance of the trusts conferred, shall be vested with the estates or property specified in its instrument of appointment, either jointly with the Trustee or separately, as may be provided

 

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therein, subject to all the provisions of this Agreement, specifically including every provision of this Agreement relating to the conduct of, affecting the liability of, or affording protection to, the Trustee. Each such instrument shall be filed with the Trustee and a copy thereof given to the Administrator.

 

Any separate trustee or co-trustee may at any time appoint the Trustee as its agent or attorney-in-fact with full power and authority, to the extent not prohibited by law, to do any lawful act under or in respect of this Agreement on its behalf and in its name.  If any separate trustee or co-trustee shall die, become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall vest in and be exercised by the Trustee, to the extent permitted by law, without the appointment of a new or successor trustee.

 

The Trustee shall have no obligation to determine whether a co-trustee or separate trustee is legally required in any jurisdiction in which any part of the Trust Estate may be located.

 

ARTICLE XI
 Miscellaneous

 

SECTION 11.1               Supplements and Amendments.  Any term or provision of this Agreement may be amended by the Depositor and the Trustee without the consent of the Indenture Trustee, any Noteholder, the Issuing Entity or any other Person subject to the satisfaction of one of the following conditions:

 

(i)            the Depositor delivers an Opinion of Counsel to the Indenture Trustee to the effect that such amendment will not materially and adversely affect the interests of the Noteholders or the Certificateholders; or

 

(ii)           the Depositor delivers an Officer’s Certificate of the Depositor to the Indenture Trustee to the effect that such amendment will not materially and adversely affect the interests of the Noteholders or the Certificateholders.

 

An amendment shall be deemed not to adversely affect in any material respect the interests of any Noteholders of a Class of Notes if the Rating Agency Condition has been satisfied with respect to such amendment for such Class of Notes.

 

This Agreement may also be amended from time to time by the Depositor and the Trustee, with prior written notice to the Rating Agencies (which notice shall be given pursuant to Section 11.18), with the written consent of (x) Noteholders holding Notes evidencing not less than a majority of the Note Balance and (y) the Certificateholders holding in the aggregate more than 50% of the beneficial interest in the Trust at the time of such action, for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in any manner the rights of the Noteholders or the Certificateholders; provided, however, that no such amendment shall: (a) reduce the interest or principal of any Note or Certificate or delay the Final Scheduled Maturity Date of any Note or (b) reduce the aforesaid percentage of the Outstanding Amount and the beneficial interest in the Trust required to consent to any such amendment, without the consent of the holders of all the outstanding Notes and Trust Certificates.

 

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Notwithstanding the above, the permitted activities of the Trust set forth in Section 2.3 may not be significantly amended without the consent of Noteholders, other than the Seller and its Affiliates as Noteholders, evidencing not less than a majority of the Outstanding Amount of the Notes held by parties exclusive of the Seller and its Affiliates.

 

Promptly after the execution of any such amendment or consent (or, in the case of the Rating Agencies, prior thereto), the Trustee shall furnish written notification of the substance of such amendment or consent to each Certificateholder, the Indenture Trustee and, subject to Section 11.18, to each of the Rating Agencies.

 

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

 

Promptly after the execution of any amendment to the Certificate of Trust, the Trustee shall cause the filing of such amendment with the Secretary of State.

 

Prior to the execution of any amendment to this Agreement or the Certificate of Trust, the Trustee shall be entitled to receive and rely upon an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this Agreement and that all conditions precedent to the execution and delivery of such amendment has been satisfied.  The Trustee may, but shall not be obligated to, enter into any such amendment that affects the Trustee’s own rights, duties or immunities under this Agreement or otherwise.

 

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

 

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

 

SECTION 11.4               Notices.  (a) Unless otherwise expressly specified or permitted by the terms hereof, all notices shall be in writing, personally delivered, by facsimile or mailed by certified mail, postage prepaid and return receipt requested, and shall be deemed to have been duly given upon receipt: (i) if to the Trustee, Indenture Trustee or the Paying Agent, addressed to

 

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the applicable Corporate Trust Office and (ii) if to the Depositor, addressed to CNH Capital Receivables LLC, 6900 Veterans Boulevard, Burr Ridge, Illinois 60527, Attention: Assistant Treasurer, (telephone: (630) 887-2095) (facsimile: (630) 887-5448); or, as to each party, at such other address or facsimile number as shall be designated by such party in a written notice to the other party.

 

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

 

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

 

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

 

SECTION 11.7               Successors and Assigns.  All covenants and agreements contained herein shall be binding upon, and inure to the benefit of, the Depositor and its successors, the Trustee and its successors and each Certificateholder and its successors and permitted assigns, all as herein provided. Any request, notice, direction, consent, waiver or other instrument or action by a Certificateholder shall bind the successors and assigns of such Certificateholder.

 

SECTION 11.8               Covenants of The Depositor.  If any litigation with claims in excess of $1,000,000 to which the Depositor is a party that shall be reasonably likely to result in a material judgment against the Depositor that the Depositor will not be able to satisfy shall be commenced by a Certificateholder during the period beginning nine months following the commencement of such litigation and continuing until such litigation is dismissed or otherwise terminated (and, if such litigation has resulted in a final judgment against the Depositor, such judgment has been satisfied), the Depositor shall not pay any dividend to CNHCA, or make any distribution on or in respect of its capital stock to CNHCA, or repay the principal amount of any indebtedness of the Depositor held by CNHCA, unless (i) after giving effect to such payment, distribution or repayment, the Depositor’s liquid assets shall not be less than the amount of actual damages claimed in such litigation or (ii) the Rating Agency Condition shall have been satisfied with respect to any such payment, distribution or repayment.  The Depositor will not at any time institute against the Trust any bankruptcy proceedings under any United States federal or State bankruptcy or similar law in connection with any obligations relating to the Trust Certificates, the Notes, the Trust Agreement or any of the Basic Documents.

 

SECTION 11.9               No Petition.  The Trustee on behalf of the Trust, by entering into this Agreement, each Certificateholder, by accepting a Trust Certificate, the Trustee, and the Indenture Trustee and each Noteholder, by accepting the benefits of this Agreement, hereby

 

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covenant and agree that they will not at any time institute against the Depositor or the Trust, or join in any institution against the Depositor or the Trust of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any federal or State bankruptcy or similar law in connection with any obligations relating to the Trust Certificates, the Notes, this Agreement or any of the Basic Documents.

 

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

 

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

 

SECTION 11.12                                      Governing Law.  This Agreement shall be construed in accordance with the laws of the State of Delaware, without reference to its conflict of law provisions, and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with such laws.

 

SECTION 11.13                                      Administrator.  The Administrator is authorized to execute on behalf of the Trust all such documents, reports, filings, instruments, certificates and opinions as it shall be the duty of the Trust to prepare, file or deliver pursuant to this Agreement and the Basic Documents.  Upon written request, the Trustee shall execute and deliver to the Administrator a power of attorney appointing the Administrator its agent and attorney-in-fact to execute all such documents, reports, filings, instruments, certificates and opinions.

 

SECTION 11.14                                      Information to be Provided by the Trustee.  For so long as the Depositor is required to report under Regulation AB and the Exchange Act, the Trustee shall, as promptly as practicable, but in any case no later than each Payment Date, notify the Depositor, in writing, of: (i) the commencement of or, if applicable, the termination of, any and all legal proceedings pending against the Trustee or any and all proceedings of which any property of the Trustee is the subject, that is material to the noteholders; and (ii) the commencement of or, if applicable, the termination of, any and all such proceedings known to be contemplated by governmental authorities against the Trustee or any and all proceedings of which any property of the Trustee is the subject, that is material to the noteholders.  The Trustee shall also notify the Depositor, in writing, as promptly as practicable, but in any case no later than each Payment Date, following notice to or discovery by a Responsible Officer of the Trustee of any material changes to proceedings described in the preceding sentence.  In addition, the Trustee will furnish to the Depositor, in writing, the necessary disclosure regarding the Trustee describing such proceedings required to be disclosed under Regulation AB, including Item 1117 of Regulation AB, for inclusion in reports filed by or on behalf of the Depositor pursuant to the Exchange Act.

 

For so long as the Notes are outstanding and the Depositor is required to report under Regulation AB and the Exchange Act, the Trustee shall (i) on or before the fifth Business Day of

 

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each January, April, July and October provide to the Depositor, in writing, such information regarding or relating to the Trustee as is required for the purpose of compliance by the Depositor with Regulation AB, including Items 1109(a), 1109(b), 1119(a) and 1119(b) of Regulation AB; and (ii) as promptly as practicable following notice to or discovery by a Responsible Officer of the Trustee of any changes to such information (but in any case no later than the next March 15 following such change), provide to the Depositor, in writing, such updated information.  Such information shall include, at a minimum:

 

(A)                              the Trustee’s name and form of organization;

 

(B)                                a description of the extent to which the Trustee has had prior experience serving as a trustee for asset-backed securities transactions involving equipment receivables; and

 

(C)                                a description of any affiliation between the Trustee and any of the following parties (the “Affiliation Parties”), as such parties are identified by legal name to the Trustee by the Depositor on the Closing Date:

 

(1)                                  the sponsor;

(2)                                  any depositor;

(3)                                  the issuing entity;

(4)                                  any servicer;

(5)                                  any other trustee;

(6)                                  any originator;

(7)                                  any significant obligor;

(8)                                  any enhancement or support provider; and

(9)                                  any other material party related to the transaction.

 

In addition, the Trustee shall provide a description of whether there is, and if so the general character of, any business relationship, agreement, arrangement, transaction or understanding between the Trustee and any above-listed party that is entered into outside the ordinary course of business or is on terms other than would be obtained in an arm’s length transaction with an unrelated third party, apart from this transaction, that currently exists or that existed during the past two years and that is material to an investor’s understanding of the Notes.

 

For so long as the Notes are outstanding and the Depositor is required to report under the Exchange Act, to the extent that there is a change in any of the Affiliation Parties, the Depositor will notify the Trustee in writing of a change or addition to any such Affiliation Parties, to the extent that an Authorized Officer of the Depositor has actual knowledge of such change or addition.

 

SECTION 11.15                                      Complete Information.  The Disclosure Information (as defined in Section 11.16) provided by WTC for inclusion in the Prospectus and the Preliminary Prospectus is true and accurate in all material respects.  As of the Preliminary Prospectus Date and the Prospectus Date (a) there are no legal proceedings pending or known to be contemplated by governmental authorities against WTC or against any property of WTC, that would be material to the Noteholders, (b) WTC is not affiliated with any of the Affiliation Parties, and (c) there is no business relationship, agreement, arrangement, transaction or understanding between the

 

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Trustee and any of the Affiliation Parties that is entered into outside the ordinary course of business or is on terms other than would be obtained in an arm’s length transaction with an unrelated third party, apart from this transaction, that currently exists or that existed during the past two years and that is material to an investor’s understanding of the Notes.

 

SECTION 11.16                                      Indemnification.

 

(a)                                  WTC agrees to pay, and to protect, indemnify and save harmless Depositor and CNHCA from and against, any and all claims, losses, liabilities (including penalties), actions, suits, judgments, demands, damages, costs or expenses (including reasonable fees and expenses of attorneys or, as necessary consultants and auditors and reasonable costs of investigations) (collectively, “Losses”) of any nature to the extent such Losses result from:

 

(i)                                     any untrue statement of a material fact contained in (x) the information provided by the Trustee pursuant to Section 11.14 (“Periodic Information”) or (y) the language set forth in Section 11.16(b) that was furnished by WTC for use under the heading “The Trustee” in the prospectus supplement contained in the Prospectus and the Preliminary Prospectus (the “Disclosure Information”, and together with the Periodic Information and the 11.15 Information, the “Trustee Information”) or (z) Section 11.15 (the “11.15 Information”), or

 

(ii)                                  the omission to state in the Trustee Information a material fact required to be stated in the Trustee Information, or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading,

 

(b)                                 The Disclosure Information for purposes of Section 11.16(a)(ii) is as follows:

 

“Wilmington Trust Company is the trustee under the trust agreement and is a Delaware trust company incorporated in 1903.  On July 1, 2011, Wilmington Trust Company filed an amended charter which changed its status from a Delaware banking corporation to a Delaware trust company.  The trustee’s principal place of business is located at 1100 North Market Street, Wilmington, Delaware 19890.  Since 1998, Wilmington Trust Company has served as owner trustee in numerous asset-backed securities transactions involving equipment retail installment loans and retail installment sale contracts.  Wilmington Trust Company has served as trustee for trusts involving securitizations of retail installment sale contracts and retail installment loans by the depositor since 2007.

 

Wilmington Trust Corporation, the parent of Wilmington Trust Company, announced on November 1, 2010 that it entered into a merger agreement with M&T Bank Corporation (“M&T”), a New York corporation, and MTB One, Inc., a Delaware corporation and wholly-owned subsidiary of M&T, pursuant to which MTB One, Inc. will be merged with and into Wilmington Trust Corporation, with Wilmington Trust Corporation surviving the merger as a

 

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wholly-owned subsidiary of M&T.  The transaction closed at 12:01 AM on May 16, 2011, after receiving all required shareholder and regulatory approvals.

 

Wilmington Trust Company is subject to various legal proceedings that arise from time to time in the ordinary course of business.  Wilmington Trust Company does not believe that the ultimate resolution of any of these proceedings will have a materially adverse effect on its services as trustee or on the noteholders.

 

Wilmington Trust Company has provided the above information for purposes of complying with Regulation AB. Other than the above three paragraphs, Wilmington Trust Company has not participated in the preparation of, and is not responsible for, any other information contained in this prospectus supplement or the accompanying prospectus.”

 

(c)                                  With respect to the indemnification provided in Section 11.16(a), in no event will WTC be liable for special, indirect or consequential damages relating to such indemnification.  In case any proceeding (including any governmental investigation) shall be instituted involving any person in respect of which indemnity may be sought pursuant thereto, such person (the “indemnified party”) shall promptly notify WTC in writing.  In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the reasonable fees and expenses of such counsel shall be at the expense of such indemnified party.  WTC may, at its option, at any time upon written notice to the indemnified party, assume the defense of any proceeding relating to such indemnity and may designate counsel reasonably satisfactory to the indemnified party in connection therewith provided that the counsel so designated would have no actual or potential conflict of interest in connection with such representation.  Unless it shall assume the defense of any proceeding WTC shall not be liable for any settlement of any proceeding effected without its written consent.  If WTC assumes the defense of any proceeding, it shall be entitled to settle such proceeding with the consent of the indemnified party or, if such settlement provides for release of the indemnified party in connection with all matters relating to the proceeding which have been asserted against the indemnified party in such proceeding by the other parties to such settlement, without the consent of the indemnified party.

 

(d)                                 Depositor agrees to pay, and to protect, indemnify and save harmless WTC, and its respective officers, directors, shareholders, employees, agents and each person, if any, who controls WTC, within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against, any and all claims, losses, liabilities (including penalties), actions, suits, judgments, demands, damages, costs or expenses (including reasonable fees and expenses of attorneys or, as necessary, consultants and auditors and reasonable costs of investigations) (collectively, “WTC Losses”) of any nature to the extent such WTC Losses result from any untrue statement of a material fact contained under the heading “Depositor” in the base prospectus contained in the Preliminary Prospectus and the Prospectus, any omission to state under the heading “Depositor” in the base prospectus contained in the Preliminary Prospectus and the Prospectus a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstance under which they were made, not misleading, or any untrue information with respect to Affiliation Parties provided by the

 

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Depositor pursuant to the last paragraph of Section 11.14 (unless WTC has actual knowledge that such Affiliation Party information is incorrect).

 

(e)                                  With respect to the indemnification provided in Section 11.16(d), in no event will Depositor be liable for special, indirect or consequential damages relating to such indemnification.  In case any proceeding (including any governmental investigation) shall be instituted involving any person in respect of which indemnity may be sought pursuant thereto, such person (the “indemnified party”) shall promptly notify Depositor in writing.  In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the reasonable fees and expenses of such counsel shall be at the expense of such indemnified party.  Depositor may, at its option, at any time upon written notice to the indemnified party, assume the defense of any proceeding relating to such indemnity and may designate counsel reasonably satisfactory to the indemnified party in connection therewith provided that the counsel so designated would have no actual or potential conflict of interest in connection with such representation.  Unless it shall assume the defense of any proceeding Depositor shall not be liable for any settlement of any proceeding effected without its written consent.  If Depositor assumes the defense of any proceeding, it shall be entitled to settle such proceeding with the consent of the indemnified party or, if such settlement provides for release of the indemnified party in connection with all matters relating to the proceeding which have been asserted against the indemnified party in such proceeding by the other parties to such settlement, without the consent of the indemnified party.

 

SECTION 11.17                                      Paying Agent Protection.  The Paying Agent shall be entitled to all the same rights, protections, immunities and indemnities as the Indenture Trustee under the Indenture as if specifically set forth herein.

 

SECTION 11.18                                      Communications with Rating Agencies.  The parties hereto (other than the Seller and its Affiliates but excluding the Issuing Entity) agree that any notices or requests to, or any other written communications with, any of the Rating Agencies, or any of their respective officers, directors or employees, to be given or provided to such Rating Agencies pursuant to, in connection with or related, directly or indirectly, to the Basic Documents, the Collateral or the Notes, shall be in each case either (i) furnished to the Seller who shall forward such communication to the Rating Agencies pursuant to Section 10.18 of the Sale and Servicing Agreement; or (ii) furnished directly to the Rating Agencies with a prior copy to the Seller.  In either case, the parties hereto (other than the Seller and its Affiliates but excluding the Issuing Entity) further agree to provide such notices, requests and communications or copies thereof, as applicable, to the Seller at least one Business Day prior to the date when such notices, requests and communications are required to be delivered (or are in fact delivered, whichever is earlier) to the Rating Agencies pursuant to the Basic Documents.  So long as any Notes are Outstanding, each party hereto (other than the Seller and its Affiliates but excluding the Issuing Entity) agrees that neither it nor any party on its behalf shall engage in any oral communications with respect to the transactions contemplated hereby, under the Basic Documents or in any way relating to the Notes with any Rating Agency or any of their respective officers, directors or employees, without the participation of the Seller.

 

31

 

*   *   *   *   *

 

32

 

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

 

	
 
    	
Wilmington Trust Company,
    
	
 
    	
in its individual capacity and
    
	
 
    	
as Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Dorri Costello
    
	
 
    	
 
    	
Name:
    	
Dorri Costello
    
	
 
    	
 
    	
Title:
    	
Financial Services Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CNH Capital Receivables LLC
    
	
 
    	
as Depositor
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Douglas S. MacLeod
    
	
 
    	
 
    	
Name:
    	
Douglas S. MacLeod
    
	
 
    	
 
    	
Title:
    	
Assistant Treasurer
    

 

 

	
ACKNOWLEDGED AND ACCEPTED:
    	
 
    
	
 
    	
 
    
	
Deutsche Bank Trust Company Americas,
    	
 
    
	
As Indenture Trustee and as Paying Agent
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ Louis Bodi
    	
 
    
	
 
    	
Name:
    	
Louis Bodi
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    

 

 

EXHIBIT A

 

FORM OF TRUST CERTIFICATE

 

REGISTERED

 

	
NUMBER   R- [       ]
    	
100% Beneficial Interest
    

 

THIS CERTIFICATE MAY NOT BE ACQUIRED BY OR FOR THE ACCOUNT OF A  BENEFIT PLAN (AS DEFINED BELOW).

 

CNH EQUIPMENT TRUST 2011-B

 

TRUST CERTIFICATE

 

evidencing a fractional undivided beneficial interest in the Trust (as defined below), the property of which includes a pool of retail installment sale contracts and retail installment loans secured by new and used agricultural, construction and/or other equipment and sold to the Trust by CNH Capital Receivables LLC.

 

(This Trust Certificate does not represent an interest in or obligation of CNH Capital Receivables LLC, CNH Capital America LLC, New Holland Credit Company, LLC, CNH Global N.V. or CNH America LLC, or any of their respective affiliates, except to the extent described below.)

 

THIS CERTIFIES THAT CNH CAPITAL RECEIVABLES LLC is the registered owner of a nonassessable, fully-paid, fractional undivided interest in CNH Equipment Trust 2011-B (the “Trust”) formed by CNH Capital Receivables LLC, a Delaware limited liability company (the “Depositor”).

 

The Trust was created pursuant to a Trust Agreement dated as of September 1, 2011 (the “Trust Agreement”) between the Depositor and Wilmington Trust Company, as trustee (the “Trustee”).  To the extent not otherwise defined herein, the capitalized terms used herein have the meanings assigned to them in the Trust Agreement or the Sale and Servicing Agreement (the “Sale and Servicing Agreement”) dated as of September 1, 2011 among the Trust, the Depositor and New Holland Credit Company, LLC, as servicer (the “Servicer”), as applicable.  This Trust Certificate is one of the duly authorized Trust Certificates (herein called the “Trust Certificates”) issued under and subject to the terms, provisions and conditions of the Trust Agreement, to which Trust Agreement the holder of this Trust Certificate by virtue of the acceptance hereof assents and by which holder is bound.  The provisions and conditions of the Trust Agreement are hereby incorporated by reference as though set forth in their entirety herein.

 

Issued under the Indenture dated as of September 1, 2011 between the Trust and Deutsche Bank Trust Company Americas, as Indenture Trustee, are notes designated as “[    ]% Class A-1 Asset Backed Notes,” “[     ]% Class A-2 Asset Backed Notes,”  “[     ]% Class A-3 Asset Backed Notes,” “[    ]% Class A-4 Asset Backed Notes,” and “[    ]% Class B Asset Backed Notes”.  The holder of this Trust Certificate acknowledges and agrees that its rights to receive distributions in respect of this Trust Certificate are subordinated to the rights of the Noteholders as described in the Sale and Servicing Agreement and the Indenture.

 

A-1

 

It is the intent of the Depositor, Servicer and the holder of this Trust Certificate that, for purposes of federal income, State and local income and franchise and any other income taxes measured in whole or in part by income, until the Trust Certificates are held by a Person other than the Depositor, the Trust be disregarded as an entity separate from the Depositor.  At such time that the Trust Certificates are held by more than one person, it is the intent of the Depositor, Servicer and the Certificateholders that, for purposes of federal income, State and local income and franchise and any other income taxes measured in whole or in part by income, the Trust be treated as a partnership, the assets of which are the assets held by the Trust, and the Certificateholders (including the Depositor (and its transferees and assigns) in its capacity as recipient of distributions from the Spread Account) will be treated as partners in that partnership.  The Depositor and the holder of this Trust Certificate, by acceptance of this Trust Certificate, agree to treat, and to take no action inconsistent with the treatment of, the Trust Certificates as such for tax purposes.

 

The Certificateholder, by its acceptance of this Trust Certificate, covenants and agrees that such Certificateholder will not at any time institute against the Depositor or the Trust, or join in any institution against the Depositor or the Trust, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or State bankruptcy or similar law in connection with any obligations relating to this Trust Certificate, the Notes, the Trust Agreement or any of the Basic Documents.

 

The Certificateholder, by its acceptance of this Trust Certificate, represents and warrants in writing that: (a) it is acquiring this Trust Certificate for its own account and is the sole beneficial owner of such Trust Certificate; (b) the transfer is not being effected on or through (x) an “established securities market” within the meaning of Section 7704(a)(1) of the Code, including without limitation, an over-the-counter market or an interdealer quotation system that regularly disseminates firm buy or sell quotations or (y) a “secondary market (or the substantial equivalent thereof)” within the meaning of Section 7704(a)(2) of the Code and any proposed, temporary or final Treasury regulations thereunder; and (c) such transfer will not cause the Trust to be classified as a publicly traded partnership for U.S. federal income tax purposes, and such purchaser or transferee will not take any action, including any subsequent disposition of such Trust Certificate (or any beneficial interest therein), that would cause the Trust to be treated as a publicly traded partnership for U.S. federal income tax purposes.

 

This Trust Certificate may not be acquired by or for the account of: (i) an employee benefit plan (as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)), that is subject to the provisions of Title I of ERISA, (ii) a plan described in Section 4975(e)(1) of the Internal Revenue Code of 1986, as amended, or (iii) any entity whose underlying assets include plan assets of any of the foregoing (a “Benefit Plan”). By accepting and holding this Certificate, the Certificateholder shall be deemed to have represented and warranted that it is not a Benefit Plan.

 

This Trust Certificate does not represent an obligation of, or an interest in, the Depositor, the Servicer, CNH Capital America LLC, New Holland Credit Company, LLC, CNH America LLC, CNH Global N.V., the Trustee or any affiliates of any of them and no recourse may be had against such parties or their assets, except as may be expressly set forth or contemplated herein or in the Trust Agreement or the Basic Documents.

 

A-2

 

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

 

This Trust Certificate shall be construed in accordance with the laws of the state of Delaware, without reference to its conflict of law provisions, and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with such laws.

 

A-3

 

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

 

	
 
    	
CNH   Equipment Trust 2011-B,
    
	
 
    	
 
    
	
 
    	
By:   
    	
Wilmington   Trust Company,
    
	
 
    	
 
    	
not in its individual capacity, but
    
	
 
    	
 
    	
solely as Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

A-4

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

	
 
    	
Wilmington   Trust Company,
    
	
 
    	
as Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized   Officer
    

 

 

Date:   [            ] [   ], 2011

 

A-5

 

ASSIGNMENT

 

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

 

 

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE

 

	
 
    

(Please print or type name and address, including postal zip code, of assignee) the within Trust Certificate, and all rights thereunder, hereby irrevocably constituting and appointing Attorney to transfer said Trust Certificate on the books of the Certificate Registrar, with full power of substitution in the premises.

 

	
Dated:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Signature   Guaranteed:
    	
 
    

 

*NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within Trust Certificate in every particular, without alteration, enlargement or any change whatever. Such signature must be guaranteed by a member firm of the New York Stock Exchange or a commercial bank or trust company.

 

A-6

 

EXHIBIT B
 to the Trust Agreement

 

CERTIFICATE OF TRUST

 

OF

 

CNH EQUIPMENT TRUST 2011-B

 

THIS CERTIFICATE OF TRUST of CNH EQUIPMENT TRUST 2011-B (the “Trust”), is being duly executed and filed by Wilmington Trust Company, a Delaware trust company, as trustee, to form a statutory trust under the Delaware Statutory Trust Act (12 Del. C.  §3801, et seq. (the “Act”).

 

Name.  The name of the statutory trust being formed hereby is CNH Equipment Trust 2011-B.

 

Delaware Trustee.  The name and business address of the trustee of the Trust in the State of Delaware are Wilmington Trust Company, 1100 North Market Street, Wilmington, Delaware 19890-0001.  Attention: Corporate Trust Administration.

 

Effective Date.  This Certificate of Trust shall be effective as of its filing.

 

B-1

 

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

 

	
 
    	
Wilmington   Trust Company,
    
	
 
    	
not   in its individual capacity, but solely as
    
	
 
    	
Trustee   under a Trust Agreement dated as
    
	
 
    	
of   [                ],   2011
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

B-2Exhibit 4.3

 

CNH EQUIPMENT TRUST 2011-B

 

 

SALE AND SERVICING AGREEMENT

 

among

 

CNH EQUIPMENT TRUST 2011-B,

 

as Issuing Entity,

 

and

 

CNH CAPITAL RECEIVABLES LLC,

 

as Seller,

 

and

 

NEW HOLLAND CREDIT COMPANY, LLC,

 

as Servicer

 

Dated as of September 1, 2011

 

 

TABLE OF CONTENTS

 

	
ARTICLE I Definitions
    	
1
    
	
Section 1.1.
    	
Definitions
    	
1
    
	
Section 1.2.
    	
Other Definitional Provisions
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE II Conveyance of   Receivables
    	
2
    
	
Section 2.1.
    	
Conveyance of Receivables
    	
2
    
	
Section 2.2.
    	
[Reserved]
    	
3
    
	
 
    	
 
    	
 
    
	
ARTICLE III The Receivables
    	
3
    
	
Section 3.1.
    	
Representations and Warranties of Seller
    	
3
    
	
Section 3.2.
    	
Repurchase upon Breach
    	
4
    
	
Section 3.3.
    	
Custody of Receivable Files
    	
4
    
	
Section 3.4.
    	
Duties of Servicer as Custodian
    	
5
    
	
Section 3.5.
    	
Instructions; Authority To Act
    	
5
    
	
Section 3.6.
    	
Custodian’s Indemnification
    	
6
    
	
Section 3.7.
    	
Effective Period and Termination
    	
6
    
	
Section 3.8.
    	
[Reserved]
    	
6
    
	
 
    	
 
    	
 
    
	
ARTICLE IV Administration   and Servicing of Receivables
    	
6
    
	
Section 4.1.
    	
Duties of Servicer
    	
6
    
	
Section 4.2.
    	
Collection and Allocation of Receivable Payments
    	
7
    
	
Section 4.3.
    	
Realization upon Receivables
    	
8
    
	
Section 4.4.
    	
Maintenance of Security Interests in Financed Equipment
    	
9
    
	
Section 4.5.
    	
Covenants of Servicer
    	
9
    
	
Section 4.6.
    	
Purchase of Receivables upon Breach or Due to Modification
    	
9
    
	
Section 4.7.
    	
Servicing Fee
    	
9
    
	
Section 4.8.
    	
Servicer’s Certificate
    	
10
    
	
Section 4.9.
    	
Annual Statement as to Compliance; Notice of Default
    	
10
    
	
Section 4.10.
    	
Annual Independent Certified Public Accountants’ Report
    	
10
    
	
Section 4.11.
    	
Access to Certain Documentation and Information Regarding   Receivables
    	
11
    
	
Section 4.12.
    	
Servicer Expenses
    	
11
    
	
Section 4.13.
    	
Appointment of Subservicer
    	
11
    
	
Section 4.14.
    	
Substitution of Financed Equipment
    	
11
    
	
 
    	
 
    	
 
    
	
ARTICLE V Distributions:   Spread Account; Statements to Certificateholders and Noteholders
    	
12
    
	
Section 5.1.
    	
Establishment of Trust Accounts
    	
12
    
	
Section 5.2.
    	
[Reserved]
    	
14
    
	
Section 5.3.
    	
Collections
    	
14
    
	
Section 5.4.
    	
Application of Collections
    	
14
    
	
Section 5.5.
    	
Additional Deposits
    	
14
    
	
Section 5.6.
    	
Distributions
    	
15
    
	
Section 5.7.
    	
Spread Account
    	
17
    

 

i

 

	
Section 5.8.
    	
[Reserved]
    	
18
    
	
Section 5.9.
    	
[Reserved]
    	
18
    
	
Section 5.10.
    	
[Reserved]
    	
18
    
	
Section 5.11.
    	
Statements to Certificateholders and Noteholders
    	
18
    
	
Section 5.12.
    	
Net Deposits
    	
20
    
	
Section 5.13.
    	
[Reserved]
    	
20
    
	
 
    	
 
    	
 
    
	
ARTICLE VI The Seller
    	
20
    
	
Section 6.1.
    	
Representations of Seller
    	
20
    
	
Section 6.2.
    	
Company Existence
    	
21
    
	
Section 6.3.
    	
Liability of Seller; Indemnities
    	
22
    
	
Section 6.4.
    	
Merger or Consolidation of, or Assumption of the   Obligations of, Seller
    	
23
    
	
Section 6.5.
    	
Limitation on Liability of Seller and Others
    	
23
    
	
Section 6.6.
    	
Seller May Own Certificates or Notes
    	
23
    
	
 
    	
 
    	
 
    
	
ARTICLE VII The Servicer
    	
24
    
	
Section 7.1.
    	
Representations of Servicer
    	
24
    
	
Section 7.2.
    	
Indemnities of Servicer
    	
25
    
	
Section 7.3.
    	
Merger or Consolidation of, or Assumption of the   Obligations of, Servicer
    	
27
    
	
Section 7.4.
    	
Limitation on Liability of Servicer and Others
    	
27
    
	
Section 7.5.
    	
NH Credit Not to Resign as Servicer
    	
28
    
	
Section 7.6.
    	
Servicer to Act as Administrator
    	
28
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII Default
    	
28
    
	
Section 8.1.
    	
Servicer Default
    	
28
    
	
Section 8.2.
    	
Appointment of Successor Servicer
    	
29
    
	
Section 8.3.
    	
Notification to Noteholders and Certificateholders
    	
30
    
	
Section 8.4.
    	
Waiver of Past Defaults
    	
30
    
	
 
    	
 
    	
 
    
	
ARTICLE IX Termination
    	
31
    
	
Section 9.1.
    	
Optional Purchase of All Receivables
    	
31
    
	
 
    	
 
    	
 
    
	
ARTICLE X Miscellaneous   Provisions
    	
32
    
	
Section 10.1.
    	
Amendment
    	
32
    
	
Section 10.2.
    	
Protection of Title to Trust
    	
33
    
	
Section 10.3.
    	
Notices
    	
35
    
	
Section 10.4.
    	
Assignment
    	
36
    
	
Section 10.5.
    	
Limitations on Rights of Others
    	
36
    
	
Section 10.6.
    	
Severability
    	
36
    
	
Section 10.7.
    	
Separate Counterparts
    	
36
    
	
Section 10.8.
    	
Headings
    	
36
    
	
Section 10.9.
    	
Governing Law
    	
36
    
	
Section 10.10.
    	
Assignment to Indenture Trustee
    	
36
    
	
Section 10.11.
    	
Nonpetition Covenants
    	
37
    
	
Section 10.12.
    	
Limitation of Liability of Trustee and Indenture Trustee
    	
37
    

 

ii

 

	
Section 10.13.
    	
Conditions Precedent to Other Financing Transactions
    	
38
    
	
Section 10.14.
    	
Information Requests
    	
38
    
	
Section 10.15.
    	
Information to Be Provided by the Indenture Trustee
    	
38
    
	
Section 10.16.
    	
Form 8-K Filings
    	
39
    
	
Section 10.17.
    	
Indemnification
    	
39
    
	
Section 10.18.
    	
Communications with Rating Agencies
    	
40
    
	
 
    	
 
    	
 
    
	
EXHIBITS
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
EXHIBIT A
    	
[RESERVED]
    	
 
    
	
EXHIBIT B
    	
[RESERVED]
    	
 
    
	
EXHIBIT C
    	
Form of   Servicer’s Certificate
    	
 
    
	
EXHIBIT D
    	
Form of   Assignment
    	
 
    
	
EXHIBIT E
    	
[RESERVED]
    	
 
    
	
EXHIBIT F
    	
[RESERVED]
    	
 
    
	
EXHIBIT G
    	
[RESERVED]
    	
 
    
	
EXHIBIT H
    	
Minimum   Servicing Criteria to be Addressed in Assessment of Compliance Statement
    	
 
    
	
EXHIBIT I
    	
Form of   Indenture Trustee’s Annual Certification
    	
 
    
	
EXHIBIT J
    	
Certification   of Deutsche Bank Trust Company Americas
    	
 
    
	
 
    	
 
    	
 
    
	
SCHEDULES
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SCHEDULE   P
    	
Perfection   Representation and Warranties
    	
 
    

 

iii

 

SALE AND SERVICING AGREEMENT (as amended or otherwise modified, this “Agreement”) dated as of September 1, 2011 among CNH EQUIPMENT TRUST 2011-B, a Delaware statutory trust (the “Issuing Entity” or the “Trust”), CNH CAPITAL RECEIVABLES LLC, a Delaware limited liability company (the “Seller”), and NEW HOLLAND CREDIT COMPANY, LLC, a Delaware limited liability company (the “Servicer”).

 

RECITALS

 

WHEREAS, the Issuing Entity desires to purchase a portfolio of Contracts purchased or originated by CNH Capital America LLC (“CNHCA”), in the ordinary course of business or acquired through the exercise of clean-up calls and sold to the Seller pursuant to the Liquidity Receivables Purchase Agreement and/or the Purchase Agreement;

 

WHEREAS, the Seller is willing to sell such Contracts to the Issuing Entity; and

 

WHEREAS, New Holland Credit Company, LLC (“NH Credit”) is willing to service such Contracts.

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto agree as follows:

 

ARTICLE I

Definitions

 

Section 1.1.                     Definitions.  Capitalized terms used herein and not otherwise defined herein are defined in Appendix A to the Indenture, dated as of the date hereof, between the Issuing Entity and Deutsche Bank Trust Company Americas.

 

Section 1.2.                     Other Definitional Provisions.  (a)  All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein.

 

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

 

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

 

1

 

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

 

(e)           References to any law or regulation refer to that law or regulation as amended from time to time and include any successor law or regulation.

 

(f)            References to any agreement refer to that agreement as from time to time amended or supplemented or as the terms of such agreement are waived or modified in accordance with its terms.

 

(g)           References to any Person include that Person’s successors and assigns.

 

ARTICLE II

Conveyance of Receivables

 

Section 2.1.                     Conveyance of Receivables.  (a)  In consideration of the Issuing Entity’s delivery to or upon the order of the Seller on the Closing Date of the Notes and the other amounts to be distributed from time to time to the Seller in accordance with this Agreement, the Seller does hereby sell, transfer, assign, set over and otherwise convey to the Issuing Entity, without recourse (subject to the obligations herein), all of its right, title and interest in, to and under the following (collectively, the “CNHCR Assets”):

 

(i)            the Receivables, including all documents constituting chattel paper included therewith, and all obligations of the Obligors thereunder, including all monies paid thereunder on or after the Cutoff Date;

 

(ii)           the security interests in the Financed Equipment granted by Obligors pursuant to the Receivables and any other interest of the Seller in such Financed Equipment;

 

(iii)          any proceeds with respect to the Receivables from claims on insurance policies covering Financed Equipment or Obligors (to the extent not used to purchase Substitute Equipment);

 

(iv)          the Purchase Agreement, including the right of the Seller to cause CNHCA to repurchase Receivables from the Seller under the circumstances described therein;

 

(v)           any proceeds from recourse to Dealers with respect to the Receivables;

 

(vi)          any Financed Equipment that shall have secured a Receivable and that shall have been acquired by or on behalf of the Trust;

 

(vii)         all funds on deposit from time to time in the Trust Accounts, including the Spread Account Deposit, and in all investments and proceeds thereof (including all income thereon); and

 

2

 

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

 

The above assignment shall be evidenced by a duly executed written assignment in substantially the form of Exhibit D (the “Assignment”).

 

(b)           [Reserved].

 

Section 2.2.                     [Reserved].

 

ARTICLE III

The Receivables

 

Section 3.1.                     Representations and Warranties of Seller.  The Seller makes the following representations and warranties as to the Receivables on which the Issuing Entity is deemed to have relied in acquiring the Receivables.  Such representations and warranties speak as of the Closing Date, but shall survive the sale, transfer and assignment of the Receivables to the Issuing Entity and the pledge thereof to the Indenture Trustee pursuant to the Indenture.

 

(a)           Title.  It is the intention of the Seller that the transfer and assignment herein contemplated constitute a sale of the Receivables from the Seller to the Issuing Entity and that the beneficial interest in and title to the Receivables not be part of the debtor’s estate in the event of the filing of a bankruptcy petition by or against the Seller under any bankruptcy or similar law.  No Receivable has been sold, transferred, assigned or pledged by the Seller to any Person other than the Issuer.  Immediately prior to the transfer and assignment herein contemplated, the Seller had good title to each Receivable, free and clear of all Liens and, immediately upon the transfer thereof, the Issuer shall have good title to each Receivable, free and clear of all Liens; and the transfer and assignment of the Receivables to the Issuer has been, or within the timeframe required by Section 3.1(b) hereof will be, perfected under the UCC.

 

If (but only to the extent) that the transfer of the CNHCR Assets hereunder is characterized by a court or other governmental authority as a loan rather than a sale, the Seller shall be deemed hereunder to have granted to the Issuing Entity a security interest in all of Seller’s right, title and interest in and to the CNHCR Assets.  Such security interest shall secure all of Seller’s obligations (monetary or otherwise) under this Agreement and the other Basic Documents to which it is a party, whether now or hereafter existing or arising, due or to become due, direct or indirect, absolute or contingent.  The Seller shall have, with respect to the property described in Section 2.1, and in addition to all the other rights and remedies available to Seller under this Agreement and applicable law, all the rights and remedies of a secured party under any applicable UCC, and this Agreement shall constitute a security agreement under applicable law.

 

(b)           All Filings Made. All filings (including UCC filings) necessary in any jurisdiction to give the Issuer a first priority perfected ownership interest in the Receivables, and to give the Indenture Trustee a first priority perfected security interest therein, have been made, or will be made within 10 days after the Closing Date.

 

(c)           Perfection Representations. The Seller further makes all the representations, warranties and covenants set forth in Schedule P.

 

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Section 3.2.                     Repurchase upon Breach.  (a)  The Seller, the Servicer or the Trustee, as the case may be, shall inform the other parties to this Agreement and the Indenture Trustee promptly, in writing, upon the discovery of any breach of the Seller’s representations and warranties made pursuant to Section 3.1 or Section 6.1, or CNHCA’s representations and warranties made pursuant to Section 3.2(b) of the Purchase Agreement.  Unless a breach pursuant to the sections and documents referenced in the preceding sentence shall have been cured by the last day of the second (or, if the Seller elects, the first) Collection Period after such breach is discovered by the Servicer or the Trustee or in which the Trustee receives written notice from the Seller or the Servicer of such breach, the Seller shall be obligated, and, if necessary, the Seller or the Trustee shall enforce the obligation of CNHCA under the Purchase Agreement to repurchase any Receivable materially and adversely affected by any such breach as of such last day. As consideration for the repurchase of the Receivable, the Seller shall remit the Purchase Amount in the manner specified in Section 5.5; provided, however, that the obligation of the Seller to repurchase any Receivable arising solely as a result of a breach of CNHCA’s representations and warranties pursuant to Section 3.2(b) of the Purchase Agreement is subject to the receipt by the Seller of the Purchase Amount from CNHCA.  Subject to the provisions of Section 6.3, the sole remedy of the Issuing Entity, the Trustee, the Indenture Trustee, the Noteholders or the Certificateholders with respect to a breach of the representations and warranties pursuant to Section 3.1 and the agreement contained in this Section shall be to require the Seller to repurchase Receivables pursuant to this Section, subject to the conditions contained herein, and to enforce CNHCA’s obligation to the Seller to repurchase such Receivables pursuant to the Purchase Agreement.

 

(b)           With respect to all Receivables purchased or repurchased by, or otherwise transferred to (including Liquidated Receivables transferred under Section 4.3, 4.6 and 9.1) CNHCA, the Servicer, the Seller or their Affiliate pursuant to this Agreement or the Purchase Agreement: (i) the Issuing Entity, the Seller and the Indenture Trustee shall sell, transfer, assign, set over and otherwise convey to CNHCA, the Servicer, the Seller or their Affiliate, as applicable, without recourse, representation or warranty, all of the Issuing Entity’s, the Seller’s and the Indenture Trustee’s right, title and interest in, to and under such Receivables, related Financed Equipment, and all other CNHCR  Assets related thereto, including all security and documents relating thereto, and (ii) the Issuing Entity, the Seller, and the Indenture Trustee shall be deemed to have released any security interest and any other claim under this Agreement and the Basic Documents in such Receivables, related Financed Equipment, and all other CNHCR  Assets related thereto, including all security and documents relating thereto, without any further act or deed, and such Receivables, related Financed Equipment, and all security and documents relating thereto will be free of the Grant contained in the Indenture.

 

Section 3.3.                     Custody of Receivable Files.  To assure uniform quality in servicing the Receivables and to reduce administrative costs, the Issuing Entity hereby revocably appoints the Servicer, and the Servicer hereby accepts such appointment, to act for the benefit of the Issuing Entity and the Indenture Trustee as custodian of the following documents or instruments, which are hereby constructively delivered to the Indenture Trustee, as pledgee of the Issuing Entity with respect to each Receivable:

 

(a)           the original fully executed copy of the Receivable;

 

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(b)           a record or facsimile of the original credit application fully executed by the Obligor;

 

(c)           the original certificate of title or file stamped copy of the UCC financing statement or such other documents that the Servicer shall keep on file (if any), in accordance with its customary procedures, evidencing the security interest of CNHCA in the Financed Equipment; and

 

(d)           any and all other documents that the Servicer, the Seller or CNHCA shall keep on file, in accordance with its customary procedures, relating to a Receivable, an Obligor or any of the Financed Equipment.

 

Section 3.4.                     Duties of Servicer as Custodian.  (a)  Safekeeping. The Servicer (or its Affiliates, but only in accordance with the second following sentence) shall hold the Receivable Files for the benefit of the Issuing Entity and the Indenture Trustee and maintain such accurate and complete accounts, records and computer systems pertaining to each Receivable File as shall enable the Issuing Entity to comply with this Agreement. In performing its duties as custodian, the Servicer shall act with reasonable care, using that degree of skill and attention that the Servicer exercises with respect to the receivable files relating to all comparable equipment receivables that the Servicer services for its Affiliates or others.  The Servicer, in its capacity as custodian, may at any time delegate its duties as custodian to any Affiliate of the Servicer; provided, that no such delegation shall relieve the Servicer of its responsibility with respect to such duties and the Servicer shall remain obligated and liable to the Issuing Entity, the Depositor and the Indenture Trustee for its duties hereunder as if the Servicer alone were performing such duties. The Servicer shall conduct, or cause to be conducted, periodic audits of the Receivable Files and the related accounts, records and computer systems, in such a manner as shall enable the Issuing Entity or the Indenture Trustee to verify the accuracy of the Servicer’s record keeping.  The Servicer shall promptly report to the Issuing Entity and the Indenture Trustee any material failure on its part, or its Affiliate’s part, to hold the Receivable Files and maintain its accounts, records and computer systems as herein provided and promptly take appropriate action to remedy any such failure. Nothing herein shall be deemed to require an initial review or any periodic review by the Issuing Entity, the Trustee or the Indenture Trustee of the Receivable Files.

 

(b)           Maintenance of and Access to Records. The Servicer shall maintain each Receivable File at one or more of its offices and/or one or more of its Affiliate’s offices; provided that at no time shall a Receivable File be moved to an office or location outside the geographic boundaries of the United States.  With at least five (5) Business Days prior notice, the Servicer shall make available for inspection by the Seller, the Issuing Entity and the Indenture Trustee or their respective duly authorized representatives, attorneys or auditors a list of locations of the Receivable Files and the related accounts, records and computer systems maintained by the Servicer at such times during normal business hours as the Seller, the Issuing Entity or the Indenture Trustee shall instruct.

 

Section 3.5.                     Instructions; Authority To Act.  The Servicer shall be deemed to have received proper instructions with respect to the Receivable Files upon its receipt of written instructions signed by a Trust Officer of the Indenture Trustee.

 

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Section 3.6.                     Custodian’s Indemnification.  The Servicer as custodian shall indemnify the Trust, the Trustee and the Indenture Trustee (and each of their officers, directors, employees and agents) for any and all liabilities, obligations, losses, compensatory damages, payments, costs or expenses of any kind whatsoever that may be imposed on, incurred by or asserted against the Trust, the Trustee or the Indenture Trustee (or any of their officers, directors and agents) as the result of any improper act or omission in any way relating to the maintenance and custody by the Servicer as custodian of the Receivable Files; provided, however, that the Servicer shall not be liable: (a) to the Trustee for any portion of any such amount resulting from the willful misfeasance, bad faith or negligence of the Trustee, and (b) to the Indenture Trustee for any portion of any such amount resulting from the willful misfeasance, bad faith or negligence of the Indenture Trustee; and, provided further, that the Servicer shall only be liable pursuant to this Section 3.6 for its acts or omissions committed during the period it is serving as custodian hereunder.  Indemnification under this Section shall survive the resignation or removal of the Servicer as custodian, the resignation or removal of the Indenture Trustee or the termination of this Agreement.

 

Section 3.7.                     Effective Period and Termination.  The Servicer’s appointment as custodian shall become effective as of the Cutoff Date and shall continue in full force and effect until terminated pursuant to this Section.  If any Servicer shall resign as Servicer in accordance with this Agreement or if all of the rights and obligations of any Servicer shall have been terminated under Section 8.1, the appointment of such Servicer as custodian shall be terminated by:  (a) the Indenture Trustee, (b) the Noteholders of Notes evidencing not less than 25% of the Note Balance, (c) with the consent of Noteholders of Notes evidencing not less than 25% of the Note Balance, the Trustee or (d) Certificateholders evidencing not less than 25% of the beneficial interest in the Issuing Entity, in the same manner as the Indenture Trustee or such Holders may terminate the rights and obligations of the Servicer under Section 8.1.  The Indenture Trustee or, with the consent of the Indenture Trustee, the Trustee may terminate the Servicer’s appointment as custodian, with cause, at any time upon written notification to the Servicer, and without cause upon 30 days’ prior written notification to the Servicer. As soon as practicable after any termination of such appointment, the Servicer shall deliver the Receivable Files to the Indenture Trustee or the Indenture Trustee’s agent at such place(s) as the Indenture Trustee may reasonably designate.

 

Section 3.8.                     [Reserved].

 

ARTICLE IV

Administration and Servicing of Receivables

 

Section 4.1.                     Duties of Servicer.  The Servicer, for the benefit of the Issuing Entity, and (to the extent provided herein) the Indenture Trustee shall manage, service, administer and make collections on the Receivables with reasonable care, using that degree of skill and attention that the Servicer or Indenture Trustee, as applicable, exercises with respect to all comparable equipment receivables that it services for its Affiliates or others. The Servicer’s duties shall include collection and posting of all payments, responding to inquiries of Obligors on such Receivables, investigating delinquencies, sending payment coupons or statements to Obligors, reporting tax information to Obligors, accounting for collections and furnishing monthly and annual statements to the Trustee and the Indenture Trustee with respect to distributions. Subject

 

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to Section 4.2, the Servicer shall follow its then current customary standards, policies and procedures (“Servicing Procedures”) in performing its duties as Servicer.

 

Without limiting the generality of the foregoing, the Servicer is authorized and empowered to execute and deliver, on behalf of itself, the Issuing Entity, the Trustee, the Indenture Trustee, the Certificateholders, the Noteholders or any of them, any and all instruments of satisfaction or cancellation, or partial or full release or discharge, and all other comparable instruments, with respect to such Receivables or the Financed Equipment securing such Receivables. If the Servicer shall commence a legal proceeding to enforce a Receivable, the Issuing Entity shall thereupon be deemed to have automatically assigned, solely for the purpose of collection, such Receivable to the Servicer. If in any enforcement suit or legal proceeding it shall be held that the Servicer may not enforce a Receivable on the ground that it shall not be a real party in interest or a holder entitled to enforce such Receivable, the Trustee shall, at the Servicer’s direction (and, so long as the Servicer is NH Credit, at the Servicer’s expense), take steps to enforce such Receivable, including bringing suit in its name or the name of the Trust, the Indenture Trustee, the Certificateholders or the Noteholders. The Trustee or the Indenture Trustee shall, upon the written request of the Servicer, furnish the Servicer with any powers of attorney and other documents reasonably necessary or appropriate to enable the Servicer to carry out its servicing and administrative duties hereunder.

 

Section 4.2.                     Collection and Allocation of Receivable Payments.  The Servicer shall make reasonable efforts to collect all payments called for under the Receivables as and when the same shall become due and shall follow its Servicing Procedures.  The Servicer shall allocate collections between principal and interest in accordance with its Servicing Procedures.

 

Without limiting the generality of the preceding or Section 4.1, the Servicer may grant extensions, rebates, refunds, deferrals, amendments, modifications or adjustments on a Receivable (regardless of whether or not the Receivable is a 180-Day Receivable, subject only to the following proviso) in accordance with its Servicing Procedures; provided, however, that if a Receivable is not a 180-Day Receivable and the Servicer (i) extends the date for final payment by the Obligor of any Receivable beyond the Final Scheduled Maturity Date or (ii) reduces the APR of a Receivable or reduces the aggregate amount of the Scheduled Payments due on any Receivable other than as required by applicable law (including the order of a court of competent jurisdiction), the Servicer may make such modifications to a Receivable but it shall promptly purchase the Receivable from the Issuing Entity in accordance with Section 4.6 (a “Modification Purchase Event”); provided, further, that the Servicer shall not make a modification described in the preceding clause (i) or (ii) that would trigger a Modification Purchase Event for the sole purpose of purchasing a Receivable from the Issuing Entity. The Servicer may, in accordance with its Servicing Procedures, waive any late payment charge or any other fees that may be collected in the ordinary course of servicing a Receivable.

 

Subject to the proviso of the third sentence of this Section 4.2, the Servicer and its Affiliates may engage in any marketing practice or promotion or any sale of any products, goods or services to Obligors with respect to the Receivables so long as such practices, promotions or sales are offered to obligors of comparable equipment receivables serviced by the Servicer for itself or others, whether or not such practices, promotions or sales might result in a decrease in the aggregate amount of payments on the Receivables, prepayments or faster or slower timing of

 

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the payment of the Receivables.  The Servicer and its Affiliates may also sell insurance or debt cancellation products, including products which result in the cancellation of some or all of the amount of a Receivable upon the death or disability of an Obligor or any casualty with respect to the Financed Equipment.

 

Notwithstanding anything in this Agreement to the contrary, the Servicer and its Affiliates may refinance any Receivable and deposit an amount equal to the Purchase Amount for such Receivable into the Collection Account.  The receivable created by such refinancing shall not be property of the Issuing Entity, and related Financed Equipment and any part of the Receivables Files and other CNHCR  Assets related to such Receivable shall be released to the Servicer or its Affiliate and shall no longer be subject to the terms hereof or the Indenture; provided further, that any security interests in favor of the Issuing Entity or the Indenture Trustee hereunder or under the Indenture in the related Financed Equipment and any other CNHCR  Assets related to such Receivable shall be deemed released upon such deposit.  The parties hereto intend that the Servicer and its Affiliates will not refinance a Receivable pursuant to this Section 4.2 in order to provide direct or indirect assurance to the Depositor, the Indenture Trustee, the Trustee, the Noteholders, or the Certificateholder, as applicable, against loss by reason of the bankruptcy or insolvency (or other credit condition) of, or default by, the Obligor on, or the uncollectability of, any Receivable.

 

Section 4.3.                     Realization upon Receivables.  For the benefit of the Issuing Entity and the Indenture Trustee, the Servicer shall use reasonable efforts, consistent with its Servicing Procedures, to repossess or otherwise convert the ownership of the Financed Equipment securing any Receivable as to which the Servicer shall have determined eventual payment in full is unlikely.  The Servicer shall follow such Servicing Procedures as it shall deem necessary or advisable in its servicing of equipment receivables, which may include reasonable efforts to realize upon any recourse to Dealers and selling the Financed Equipment at public or private sale.  The foregoing shall be subject to the provision that, in any case in which the Financed Equipment shall have suffered damage, the Servicer shall not expend funds in connection with the repair or the repossession of such Financed Equipment unless it shall determine in accordance with its Servicing Procedures that such repair and/or repossession will increase the Liquidation Proceeds by an amount greater than the amount of such expenses.

 

Liquidated Receivables will be transferred to the Servicer or CNHCA (as the Servicer determines at such time) on the Business Day following the day on which such Receivable becomes a Liquidated Receivable (the “Liquidated Receivable Transfer Date”) so long as the related Liquidation Proceeds are deposited before the Liquidated Receivables are transferred to the Servicer or CNHCA, as applicable, and as of the Liquidated Receivable Transfer Date such Liquidated Receivables will no longer constitute Receivables for any purposes hereunder.  Without limiting the generality of the foregoing, as of the applicable Liquidated Receivable Transfer Date (i) the Issuing Entity, the Seller and the Indenture Trustee shall transfer, assign, set over and otherwise convey to CNHCA or Servicer, as applicable, without recourse, representation or warranty, all of the Issuing Entity’s, the Seller’s and the Indenture Trustee’s right, title and interest in, to and under such Liquidated Receivables and any related Financed Equipment and Collateral, and all security and documents relating thereto, other than Liquidation Proceeds (the “Liquidated Collateral”), and (ii) the Issuing Entity, the Seller, and the Indenture Trustee shall be deemed to have released any security interest and any other claim in such

 

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Liquidated Collateral under this Agreement and the Basic Documents, without any further act or deed, and such Liquidated Collateral shall be free of the Grant contained in the Indenture.

 

Section 4.4.                     Maintenance of Security Interests in Financed Equipment.  The Servicer shall, in accordance with its Servicing Procedures, take such steps as are necessary to maintain perfection of the security interest created by each Receivable in the related Financed Equipment (which may consist of Substitute Equipment); provided however, the Servicer may allow Financed Equipment to be released from any security interest in connection with Section 4.14.  The Servicer is hereby authorized to take such steps as are necessary to perfect or re-perfect such security interest for the benefit of the Issuing Entity and the Indenture Trustee in the event of the relocation of any Financed Equipment, any change to the UCC, a substitution of Substitute Equipment or for any other reason.  Any out-of-pocket expenses incurred by the Successor Servicer in connection with any such re-perfection shall be reimbursable in accordance with Section 5.6(b)(x).

 

Section 4.5.                     Covenants of Servicer.  The Servicer shall not release the Financed Equipment securing any Receivable from the security interest granted by such Receivable in whole or in part except in the event of payment in full by the Obligor thereunder or repossession, or as permitted under Section 4.14 or if such Receivable is a Reacquired Receivable, nor shall the Servicer impair the rights of the Issuing Entity, the Indenture Trustee, the Certificateholders or the Noteholders in such Receivables. The Servicer shall, in accordance with its Servicing Procedures, require that each Obligor shall have obtained physical damage insurance covering the Financed Equipment as of the execution of the Receivable.

 

Section 4.6.                     Purchase of Receivables upon Breach or Due to Modification.  The Servicer or the Trustee shall inform the other party, the Indenture Trustee, the Seller, NH Credit and CNHCA promptly, in writing, upon the occurrence or discovery of any breach pursuant to Sections  4.2, 4.4 or 4.5.  Unless a breach, pursuant to Sections 4.2, 4.4 or 4.5 shall have been cured by the last day of the Collection Period in which such breach occurs or is discovered, as applicable, the Servicer shall purchase or shall cause CNHCA to purchase any Receivable materially and adversely affected by such breach as of such last day.  In connection with a Modification Purchase Event, or if the Servicer takes any action not in accordance with its Servicing Procedures during any Collection Period pursuant to Section 4.2 that materially impairs the rights of the Issuing Entity, the Indenture Trustee, the Certificateholders or the Noteholders in any Receivable, the Servicer shall purchase the related Receivable as of the last day of such Collection Period.  As consideration for the purchase of any such Receivable pursuant to either of the two preceding sentences, the Servicer shall remit or shall cause CNHCA to remit, as applicable, the Purchase Amount in the manner specified in Section 5.5.  Subject to Section 7.2, the sole remedy of the Issuing Entity, the Trustee, the Indenture Trustee, the Certificateholders or the Noteholders with respect to a breach pursuant to Sections 4.2, 4.4 or 4.5 shall be to require the Servicer to purchase or to cause CNHCA to purchase, as applicable, Receivables pursuant to this Section.  The Trustee shall have no duty to conduct any affirmative investigation as to the occurrence of any condition requiring the purchase of any Receivable pursuant to this Section.

 

Section 4.7.                     Servicing Fee.  The Servicing Fee for each Collection Period shall be equal to 1/12th of 1.00% of the Pool Balance as of the first day of such Collection Period;

 

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provided that with respect to any Successor Servicer hereunder, the Servicing Fee for each Collection Period shall be equal to the greater of (a) 1/12th of 1.00% of the Pool Balance as of the first day of such Collection Period, (b) $8.50 per Contract in the Trust Estate as of the first day of such Collection Period and (c) $5,000.

 

Section 4.8.                     Servicer’s Certificate.  On each Determination Date (beginning with the Determination Date immediately preceding the initial Payment Date) the Servicer shall deliver to the Trustee, the Indenture Trustee and the Seller with a copy to the Rating Agencies, a Servicer’s Certificate (containing substantially the same information as set forth in the form on Exhibit C) containing all information necessary to make the distributions pursuant to Sections 5.6 and 5.7 and the deposits to the Collection Account pursuant to Section 5.3 for the Collection Period preceding the date of such Servicer’s Certificate.

 

Section 4.9.                     Annual Statement as to Compliance; Notice of Default.  (a)  The Servicer shall deliver to the Issuing Entity and the Indenture Trustee, on or before March 30 of each year, an Officer’s Certificate of the Servicer providing such information as is required under Item 1123 of Regulation AB with respect to the prior calendar year.

 

(b)           The Servicer shall deliver to the Issuing Entity, on or before March 30 of each year, a report regarding the Servicer’s assessment of compliance with the applicable servicing criteria specified in Item 1122 of Regulation AB during the immediately preceding calendar year, including any material instance of noncompliance identified by the Servicer as required under Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB.

 

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

 

Section 4.10.                   Annual Independent Certified Public Accountants’ Report.  The Servicer shall cause a firm of independent certified public accountants, which may also render other services to the Servicer, the Seller or any other Affiliate of CNH Global, to deliver to the Issuing Entity, the Indenture Trustee and, subject to Section 10.18, the Rating Agencies on or before March 30 of each year a report, providing its assessment of compliance with the minimum servicing criteria during the preceding calendar year, including disclosure of any material instance of non-compliance, as required by Rule 13a-18 and 15d-18 of the Exchange Act and Item 1122(b) of Regulation AB.  Such attestation will be in accordance with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and the Exchange Act.

 

The report required by this Section may be replaced, at the Servicer’s option, by any similar report or certification using standards which are now or in the future in use by servicers of comparable assets or which otherwise comply with any rule, regulation, “no action” letter or similar guidance promulgated by the Securities and Exchange Commission.

 

In the event that such firm requires the Indenture Trustee to agree to the procedures performed by such firm, the Servicer shall direct the Indenture Trustee in writing to so agree; it

 

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being understood and agreed that the Indenture Trustee will deliver such letter of agreement in conclusive reliance upon the direction of the Servicer and the Indenture Trustee makes no independent inquiry or investigation as to, and shall have no obligation or liability in respect of, the sufficiency, validity or correctness of such procedures.

 

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

 

Section 4.11.                   Access to Certain Documentation and Information Regarding Receivables.  The Servicer shall provide to the Trustee and the Indenture Trustee access to the Receivable Files in such cases where the Trustee or the Indenture Trustee shall be required by applicable statutes or regulations to review such documentation. Access shall be afforded without charge, but only upon reasonable request and during the normal business hours at the office of the Servicer.  Provided, however, at any time upon written request of the Indenture Trustee, the Servicer will provide (within 10 days of receipt of such request) an electronic data file containing all relevant loan level information on each Receivable necessary for a Successor Servicer to assume servicing responsibilities, including current mailing address and telephone number, current balance, payment schedule and past due status of each Obligor (such request not to be made more frequently than one per month).  Nothing in this Section shall affect the obligation of the Servicer to observe any applicable law prohibiting disclosure of information regarding the Obligors, and the failure of the Servicer to provide access to information as a result of such obligation shall not constitute a breach of this Section.

 

Section 4.12.                   Servicer Expenses.  The Servicer shall be required to pay all expenses incurred by it in connection with its activities hereunder, including fees and disbursements of independent accountants, taxes imposed on the Servicer and expenses incurred in connection with distributions and reports to Certificateholders and the Noteholders.

 

Section 4.13.                   Appointment of Subservicer.  The Servicer may at any time appoint a subservicer to perform all or any portion of its obligations as Servicer hereunder; provided, however, that the Rating Agency Condition shall have been satisfied in connection therewith (other than with respect to the appointment of CNHCA, as subservicer, with respect to the Receivables); and provided further, that the Servicer shall remain obligated and be liable to the Issuing Entity, the Trustee, the Indenture Trustee, the Certificateholders and the Noteholders for the servicing and administering of the Receivables in accordance with the provisions hereof without diminution of such obligation and liability by virtue of the appointment of such subservicer and to the same extent and under the same terms and conditions as if the Servicer alone were servicing and administering the Receivables. The fees and expenses of any subservicer shall be as agreed between the Servicer and such subservicer from time to time and none of the Issuing Entity, the Trustee, the Indenture Trustee, the Certificateholders or the Noteholders shall have any responsibility therefor.

 

Section 4.14.                   Substitution of Financed Equipment.  Notwithstanding anything herein or in the Basic Documents to the contrary, in accordance with the Servicing Procedures, the Financed Equipment relating to a Receivable may be replaced with substitute equipment, of equal or greater value (in the Servicer’s reasonable determination) than the original related

 

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Financed Equipment (“Substitute Equipment”); provided, however, the only conditions to such a substitution (in addition to its being in accordance with the Servicing Procedures) shall be the perfection of the first priority security interest in the related Substitute Equipment in favor of CNHCA, and a first priority perfected security interest of the Indenture Trustee in all of CNHCA’s right, title and interest in its security interest in the Substitute Equipment.  Following such substitution, the Substitute Equipment shall be considered the Financed Equipment related to such Receivable for all purposes hereunder and under the Basic Documents, and (i) the Issuing Entity, the Seller and the Indenture Trustee shall sell, transfer, assign, set over and otherwise convey to CNHCA (or its Affiliate designated by it), without recourse, representation or warranty, all of the Issuing Entity’s, the Seller’s and the Indenture Trustee’s right, title and interest in, to and under such original Financed Equipment, and all security and documents relating thereto, and (ii) the Issuing Entity, the Seller, and the Indenture Trustee shall be deemed to have released any security interest and any other claim in such original Financed Equipment (and all security and documents relating thereto) hereunder and under the other Basic Documents, without any further act or deed, and such original Financed Equipment (and all security and documents relating thereto) will be free of the Grant contained in the Indenture.

 

ARTICLE V

Distributions: Spread Account;

Statements to Certificateholders and Noteholders

 

Section 5.1.                     Establishment of Trust Accounts.  (a) (i)  The Servicer, for the benefit of the Noteholders and the Certificateholders, shall establish and maintain in the name of the Indenture Trustee an Eligible Deposit Account (the “Collection Account”), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Noteholders and the Certificateholders.

 

(ii)           The Servicer, for the benefit of the Noteholders and the Certificateholders, shall establish and maintain in the name of the Indenture Trustee an Eligible Deposit Account (the “Note Distribution Account”), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Noteholders.

 

(iii)          The Servicer, for the benefit of the Noteholders, shall establish and maintain in the name of the Indenture Trustee an Eligible Deposit Account (the “Spread Account”), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Noteholders and Certificateholders.

 

(iv)          [Reserved].

 

(v)           [Reserved].

 

(vi)          [Reserved].

 

(vii)         [Reserved].

 

(b)           Funds on deposit in the Collection Account, the Note Distribution Account, and the Spread Account (collectively, the “Trust Accounts”) shall be invested or

 

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reinvested by the Indenture Trustee in Eligible Investments selected by and as directed in writing by the Servicer (which written direction may be in the form of standing instructions) or if the Servicer fails to provide written direction, shall be invested or reinvested by the Indenture Trustee in Eligible Investments specified in paragraph (d) of the definition of “Eligible Investments” (without giving effect to the proviso therein) as set forth in Appendix A to the Indenture; provided, however, it is understood and agreed that the Indenture Trustee shall not be liable for the selection of, or any loss arising from such investment in, Eligible Investments. All such Eligible Investments shall be held or controlled by the Indenture Trustee for the benefit of the Noteholders and the Certificateholders or the Noteholders, as applicable (and for the purposes of Articles 8 and 9 of the UCC, each Eligible Investment is intended to constitute a Financial Asset, and each of the Trust Accounts is intended to constitute a Securities Account); provided, that on each Transfer Date, all Investment Earnings on funds on deposit in the Trust Accounts shall be deposited into the Collection Account and shall be deemed to constitute a portion of the Total Distribution Amount. Funds on deposit in the Trust Accounts shall be invested in Eligible Investments (or other investments permitted by the Rating Agencies) that will mature so that such funds will be available at the close of business on the Transfer Date preceding the following Payment Date; provided, however, that funds on deposit in Trust Accounts may be invested in Eligible Investments of the entity serving as Indenture Trustee payable on demand or that mature so that such funds will be available on the Payment Date. Funds deposited in a Trust Account on the Transfer Date that precedes a Payment Date upon the maturity or liquidation of any Eligible Investments are not required to be invested overnight.

 

(c)           (i)  The Indenture Trustee shall possess or control all right, title and interest in all funds on deposit from time to time in the Trust Accounts and in all proceeds thereof (including all income thereon) and all such funds, investments, proceeds and income shall be part of the Trust Estate.  The Trust Accounts shall be under the sole dominion and control of the Indenture Trustee for the benefit of the Noteholders and the Certificateholders or the Noteholders, as the case may be.  If, at any time, any of the Trust Accounts ceases to be an Eligible Deposit Account, the Indenture Trustee (or the Servicer on its behalf) shall within 10 Business Days (or such longer period, not to exceed 30 calendar days, as to which each Rating Agency may consent) establish a new Trust Account as an Eligible Deposit Account and shall transfer any cash and/or any investments held in the no-longer Eligible Deposit Account to such new Trust Account.

 

(ii)           With respect to the Trust Account Property, the Indenture Trustee agrees, by its acceptance hereof, that:

 

(A)          any Trust Account Property that is held in deposit accounts shall be held solely in Eligible Deposit Accounts, subject to the last sentence of Section 5.1(c)(i);  and each such Eligible Deposit Account shall be subject to the exclusive custody and control of the Indenture Trustee, and the Indenture Trustee shall have sole signature authority with respect thereto;

 

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

 

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(C)           any such Trust Account Property that constitutes an Uncertificated Security (including any investments in money market mutual funds, but excluding any Federal Book Entry Security) shall be delivered to the Indenture Trustee in accordance with paragraph (ii) of the definition of “Delivery” and shall be maintained, pending maturity or disposition, through continued registration of the Indenture Trustee’s (or its custodian or nominee’s) ownership of such security; and

 

(D)          with respect to any Trust Account Property that constitutes a Federal Book Entry Security, the Indenture Trustee shall maintain and obtain Control over such property.

 

(iii)          The Servicer shall have the power, revocable by the Indenture Trustee or by the Trustee, with the consent of the Indenture Trustee, to instruct the Indenture Trustee to make withdrawals and payments from the Trust Accounts for the purpose of permitting the Servicer or the Trustee to carry out its respective duties hereunder or permitting the Indenture Trustee to carry out its duties under the Indenture.

 

(d)           All Trust Accounts will initially be established at the Indenture Trustee.

 

Section 5.2.                     [Reserved].

 

Section 5.3.                     Collections.  The Servicer shall, and shall cause any subservicer to, remit to the Collection Account all payments by or on behalf of the Obligors with respect to the Receivables, and all Liquidation Proceeds, both as collected during the Collection Period, and in either case within two Business Days of the date that the Servicer has identified and posted such amounts (which the Servicer shall use its reasonable best efforts to do promptly) to the Servicer’s computer system (the “Posted Date”). Notwithstanding the foregoing, for so long as: (i) NH Credit remains the Servicer, (ii) no Servicer Default shall have occurred and be continuing and (iii) prior to ceasing remittances as described in the preceding sentence, the Rating Agency Condition shall have been satisfied (and any conditions or limitations imposed by the Rating Agencies in connection therewith are complied with), the Servicer shall remit such collections with respect to the related Collection Period to the Collection Account on the Transfer Date immediately following the end of such Collection Period.  For purposes of this Article V,  the phrase “payments by or on behalf of the Obligors” shall mean payments made with respect to the Receivables by Persons other than the Servicer or the Seller.

 

Section 5.4.                     Application of Collections.  (a)  With respect to each Receivable, all collections for the Collection Period shall be applied in accordance with the Servicer’s Servicing Procedures.

 

(b)           All Liquidation Proceeds shall be applied to the related Receivable.

 

Section 5.5.                     Additional Deposits.  The Servicer and the Seller shall deposit or cause to be deposited in the Collection Account the aggregate Purchase Amount with respect to Purchased Receivables on the Transfer Date related to the Collection Period on the last day of which the purchase occurs, and the Servicer shall deposit therein all amounts to be paid under Section 9.1 on the Transfer Date falling in the Collection Period referred to in Section 9.1.  The

 

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Servicer shall deposit the aggregate Purchase Amount with respect to Purchased Receivables when such obligations are due, unless the Servicer shall not be required to make deposits within two Business Days of receipt of funds pursuant to Section 5.3, in which case such deposits shall be made on the Transfer Date following the related Collection Period.

 

Section 5.6.                     Distributions.  (a)  On each Determination Date, the Servicer shall calculate all amounts required to determine the amounts to be deposited in the Note Distribution Account, the Certificate Distribution Account and the Spread Account.

 

(b)           On each Payment Date, the Servicer shall instruct the Indenture Trustee (based on the information contained in the Servicer’s Certificate delivered on the related Determination Date pursuant to Section 4.8) to make from the Collection Account the following deposits and distributions for receipt by the party as provided below or deposit in the applicable Trust Account or Certificate Distribution Account, as applicable, by 10:00 a.m. (New York time), to the extent of the Total Distribution Amount, in the following order of priority:

 

(i)            [Reserved];

 

(ii)           to the Servicer, the Servicing Fee and all unpaid Servicing Fees from prior Collection Periods;

 

(iii)          to the Administrator, the Administration Fee and all unpaid Administration Fees from prior Collection Periods;

 

(iv)          [Reserved];

 

(v)           to the Note Distribution Account, the Class Interest Amount for each Class of Class A Notes payable by the Issuing Entity, if any;

 

(vi)          to the Note Distribution Account, an amount equal to the excess, if any, of (x) the Outstanding Amount of the Class A Notes over (y) the Asset Balance for that Payment Date (the amount deposited in the Note Distribution Account pursuant to this clause (vi)  being the “First Principal Payment Amount”);

 

(vii)         to the Note Distribution Account, the Class Interest Amount for the Class B Notes;

 

(viii)        to the Note Distribution Account, the Note Monthly Principal Distributable Amount;

 

(ix)           to the Spread Account to the extent necessary so that the balance on deposit therein will equal the Specified Spread Account Balance;

 

(x)            to the Note Distribution Account, the lesser of (a) the amounts remaining after giving effect to clauses (i) through (ix) above, and (b) the Outstanding Amount of the Class A-1 Notes as of the end of the preceding Payment Date minus the amount of payments of principal on the Class A-1 Notes to be made on such Payment

 

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Date due to the application of the First Principal Payment Amount and the Note Monthly Principal Distributable Amounts (the “Turbo Principal Payment Amount”);

 

(xi)           to the Servicer, to cover any accrued and unpaid reimbursable expenses; and

 

(xii)          to the Certificate Distribution Account, the remaining Total Distribution Amount to be distributed to the Certificateholders.

 

(c)           On the A-1 Note Final Scheduled Maturity Date, the Servicer shall instruct the Indenture Trustee to deposit from the Collection Account into the Note Distribution Account by 10:00 a.m. (New York time), to the extent of available funds on such day, an amount equal to the sum of (i) the aggregate accrued and unpaid interest on the Class A-1 Notes as of the A-1 Note Final Scheduled Maturity Date, and (ii) the amount necessary to reduce the outstanding principal amount of the Class A-1 Notes to zero.

 

It is understood and agreed that, with respect to the amounts to be distributed pursuant to this Section 5.6(c), the Servicer shall, to the extent necessary (i) deposit into the Collection Account any amounts received as payments by or on behalf of any Obligor (and not previously deposited into the Collection Account) on or prior to the A-1 Note Final Scheduled Maturity Date, (ii) make each calculation that would otherwise be made on a Determination Date (with appropriate adjustments) in accordance with Section 4.8 on the Business Day immediately proceeding the A-1 Note Final Scheduled Maturity Date, (iii) on the Payment Date immediately succeeding the A-1 Note Final Scheduled Maturity Date, make any adjustments to the Note Monthly Principal Distributable Amount, the Class Interest Amount and any other amount to be paid on such Payment Date, and (iv) make any other calculation, adjustment or correction that may be required as a result of any payment made on the A-1 Note Final Scheduled Maturity Date.

 

(d)           During the period from the date the Servicer is no longer performing as Servicer (due to being terminated or due to its ceasing to perform as Servicer) (the “Predecessor Servicer”) until the effectiveness of the transition of the Successor Servicer as provided herein (the “Transition Period”), in the event that neither NH Credit, as the Predecessor Servicer, nor the Successor Servicer, has delivered the Servicer’s Certificate containing instructions to the Indenture Trustee (required to be delivered pursuant to Section 4.8 hereof) on or before 11:00 am New York time on any Payment Date so as to enable the Indenture Trustee to make payments pursuant to and in accordance with the priority set forth in Section 5.6 hereof and Section 8.2 of the Indenture on the relevant Payment Dates during the Transition Period, the Indenture Trustee shall, to the extent such funds are available, withdraw amounts from the Collection Account and the Spread Account (based upon the information set forth under “Interest & Principal Payments Pursuant to Section 5.6(d) and 5.6(e)(ii) of the Sale and Servicing Agreement” in the last Servicer’s Certificate that the Indenture Trustee received from the Predecessor Servicer) and therefrom make payments of, (i) interest for each Note due on such Payment Date that takes place during the Transition Period and, (ii) to the extent that the Final Scheduled Maturity Date for any Notes occurs during the Transition Period, the outstanding principal amount on such Notes due on its applicable Final Scheduled Maturity Date, in each case in accordance with the priority set forth above in Section 8.2 of the Indenture.  During the Transition Period, until NH

 

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Credit or the Successor Servicer has delivered the Servicer’s Certificate required under Section 4.8 hereof, any amounts remaining in the Collection Account and the Spread Account, after the payments referred to in clauses (i) and (ii) above are made, shall be held therein until the next Payment Date and the Indenture Trustee shall have no obligation to make any other payments in respect of such Payment Date.

 

(e)           (i) In the event the Servicer’s Certificate shows that, as of any Determination Date, there are amounts on deposit in the Collection Account which do not constitute part of the Total Distribution Amount and to which the Depositor is entitled hereunder, the Servicer shall direct the Indenture Trustee to forthwith pay such amount to or upon its written order.

 

(ii) Notwithstanding the foregoing, in the event that the Servicer has not delivered the Servicer’s Certificate containing instructions to the Indenture Trustee (required to be delivered pursuant to Section 4.8 hereof) on or before 11:00 am New York time on any Payment Date so as to enable the Indenture Trustee to make payments pursuant to and in accordance with the priority set forth in Section 5.6 hereof and Section 8.2 of the Indenture on such Payment Date, the Indenture Trustee shall, to the extent such funds are available, withdraw amounts from the Collection Account and the Spread Account (based upon the information set forth under “Interest & Principal Payments Pursuant to Section 5.6(d) and 5.6(e)(ii) of the Sale and Servicing Agreement” in the last Servicer’s Certificate that the Indenture Trustee received from the Servicer and therefrom make payments of interest and principal on such Payment Date, in each case, in accordance with the priority set forth in Section 8.2 of the Indenture.

 

Section 5.7.                     Spread Account.  (a)  On the Closing Date, the Seller shall deposit the applicable Spread Account Deposit into the Spread Account.

 

(b)           If the amount on deposit in the Spread Account on any Payment Date (after giving effect to all deposits or withdrawals therefrom on such Payment Date) is greater than the Specified Spread Account Balance for such Payment Date, the Servicer shall instruct the Indenture Trustee to distribute the amount of the excess to the Seller (and its transferees and assignees in accordance with their respective interests); provided, that if, after giving effect to all payments made on the Notes on such Payment Date, the Pool Balance as of the first day of the Collection Period in which such Payment Date occurs is less than the Note Balance, such excess shall not be distributed to the Seller (or such transferees or assignees) and shall be retained in the Spread Account for application in accordance with this Agreement. Amounts properly distributed pursuant to this Section 5.7(b) shall be deemed released from the Trust and the security interest therein granted to the Indenture Trustee, and the Seller (and such transferees and assignees) shall in no event thereafter be required to refund any such distributed amounts.

 

(c)           Following: (i) the payment in full of the aggregate Outstanding Amount of the Notes and of all other amounts owing or to be distributed hereunder or under the Indenture to the Noteholders, the Trustee and the Indenture Trustee and (ii) the termination of the Trust, any amount remaining on deposit in the Spread Account shall be distributed to the Seller or any transferee or assignee pursuant to clause (e).  The Seller (and such transferees and assignees) shall in no event be required to refund any amounts properly distributed pursuant to this Section 5.7(c).

 

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(d)           In the event that the First Principal Payment Amount and the Noteholders’ Distributable Amount for a Payment Date exceeds the amount deposited into the Note Distribution Account pursuant to Sections 5.6(b)(iv), (v), (vi), (vii) and (viii) on such Payment Date, the Servicer shall instruct the Indenture Trustee on such Payment Date to withdraw from the Spread Account on such Payment Date an amount equal to such excess, to the extent of funds available therein, and deposit such amount into the Note Distribution Account.

 

(e)           The Seller may at any time, without consent of the Noteholders, sell, transfer, convey or assign in any manner its rights to and interests in distributions from the Spread Account, including interest and other investment earnings thereon; provided, that the Rating Agency Condition is satisfied.

 

Section 5.8.                     [Reserved].

 

Section 5.9.                     [Reserved].

 

Section 5.10.                   [Reserved].

 

Section 5.11.                   Statements to Certificateholders and Noteholders.  (a)  On each Determination Date the Servicer shall provide to the Indenture Trustee (with a copy to the Rating Agencies), for the Indenture Trustee to make available to each Noteholder of record, and, if NH Credit or an Affiliate is not the Servicer or the Depositor is not the sole Certificateholder, to the Indenture Trustee (if the Indenture Trustee is responsible on the related Payment Date to make the payment required under Section 5.2(a) of the Trust Agreement) or the Trustee (if the Trustee is responsible on the related Payment Date to make the payment required under Section 5.2(a) of the Trust Agreement), for the Indenture Trustee or Trustee, as applicable, to forward to each Certificateholder of record, a statement substantially in the form of Exhibit C, setting forth at least the following information as to each Class of the Notes and the Certificates to the extent applicable:

 

(i)            the amount of such distribution allocable to principal of each Class of Notes;

 

(ii)           the amount of the distribution allocable to interest on each Class of Notes;

 

(iii)          the amount to be distributed to the Certificateholders;

 

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

 

(v)           the aggregate Outstanding Amount and the Note Pool Factor for each Class of Notes as of such Payment Date, after giving effect to payments allocated to principal reported under clause (i) above;

 

(vi)          [Reserved];

 

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(vii)         the amount of the Servicing Fee paid to the Servicer with respect to the preceding Collection Period;

 

(viii)        the amount of the Administration Fee paid to the Administrator in respect of the preceding Collection Period;

 

(ix)           the amount of the aggregate Realized Losses, if any, for such Collection Period;

 

(x)            the aggregate Purchase Amounts for Receivables, if any, that were repurchased or purchased in such Collection Period;

 

(xi)           the balance of the Spread Account on the related Payment Date, after giving effect to changes therein on such Payment Date;

 

(xii)          [Reserved];

 

(xiii)         [Reserved];

 

(xiv)        [Reserved];

 

(xv)         [Reserved];

 

(xvi)        [Reserved];

 

(xvii)       [Reserved];

 

(xviii)      [Reserved];

 

(xix)         if the related Payment Date falls in March 2013, September 2013, March 2014 or September 2014:

 

(x)            the Average Delinquency Ratio and whether the Average Delinquency Ratio Test is met on such Payment Date;

 

(y)           the Cumulative Net Loss Ratio and whether the Cumulative Net Loss Ratio Test is met on such Payment Date; and

 

(z)            whether the Specified Spread Account Reduction Trigger is met on such Payment Date; and

 

(xx)          the Specified Spread Account Balance.

 

Each amount set forth pursuant to clauses (i), (ii), (vi), (vii) and (viii) shall be expressed as a dollar amount per $1,000 of original principal balance of a Note.

 

The Indenture Trustee will make the statement to Noteholders available each month to Noteholders and other parties to the Basic Documents via the Indenture Trustee’s internet website, which is presently located at https://tss.sfs.db.com/investpublic/.

 

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Persons who are unable to use the above website are entitled to have a paper copy mailed to them via first class mail by calling the Indenture Trustee at (800) 735-7777.  The Indenture Trustee shall have the right to change the way the statement to Noteholders is distributed in order to make such distribution more convenient and/or more accessible to the above parties and to the Noteholders.  The Indenture Trustee shall provide timely and adequate notification to all above parties and to the Noteholders regarding any such change.

 

In connection with any electronic transmissions of information, including without limitation, the use of electronic mail or internet or intranet web sites, the systems used in such transmissions are not fully tested by the Indenture Trustee and may not be completely reliable as to stability, robustness and accuracy.  Accordingly, the parties hereto acknowledge and agree that information electronically transmitted as described herein may not be relied upon as timely, accurate or complete and that the Indenture Trustee shall have no liability hereunder in connection with such information transmitted electronically.  The parties hereto further acknowledge that any and all systems, software or hardware utilized in posting or retrieving any such information are utilized on an “as is” basis without representation or warranty as to the intended uses of such systems, software or hardware.  The Indenture Trustee makes no representation or warranty that the systems and the related software used in connection with the electronic transmission of information are free and clear of threats known as software and hardware viruses, time bombs, logic bombs, Trojan horses, worms, or other malicious computer instructions, intentional devices or techniques which may cause a component or system to become erased, damaged, inoperable, or otherwise incapable of being used in the manner to which it is intended, or which would permit unauthorized access thereto.

 

Section 5.12.                   Net Deposits.  As an administrative convenience, unless the Servicer is required to remit collections within two Business Days of the Posted Date, the Servicer will be permitted to make the deposit of collections net of distributions, if any, to be made to the Servicer with respect to the Collection Period.  The Servicer, however, will account to the Trustee, the Indenture Trustee, the Noteholders and the Certificateholders as if all deposits, distributions and transfers were made individually.

 

Section 5.13.                   [Reserved].

 

ARTICLE VI
 The Seller

 

Section 6.1.                     Representations of Seller.  The Seller makes the following representations on which the Issuing Entity is deemed to have relied in acquiring the Receivables.  The representations speak as of the execution and delivery of this Agreement and shall survive the sale of the Receivables to the Issuing Entity and the pledge thereof to the Indenture Trustee pursuant to the Indenture.

 

(a)           Organization and Good Standing.  The Seller is duly organized and validly existing as a limited liability company in good standing under the laws of the State of Delaware, with the power and authority to own its properties and to conduct its business as such properties are currently owned and such business is presently conducted.

 

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(b)           Due Qualification.  The Seller is duly qualified to do business as a foreign limited liability company in good standing, and has obtained all necessary licenses and approvals, in all jurisdictions in which the ownership or lease of property or the conduct of its business shall require such qualifications, except where the failure to be so qualified and have such licenses and approvals would not have a material adverse effect on (a) the Trust Estate, (b) Seller’s performance of its obligations under the Basic Documents to which it is a party, (c) the business or condition (financial or otherwise) of the Seller or (d) the validity or enforceability of any Receivable.

 

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

 

(d)           Binding Obligation.  This Agreement constitutes a legal, valid and binding obligation of the Seller enforceable in accordance with its terms.

 

(e)           No Violation.  The consummation of the transactions contemplated by this Agreement and the fulfillment of the terms hereof do not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a default under, the certificate of formation, limited liability company agreement or by-laws of the Seller, or any indenture, agreement or other instrument to which the Seller is a party or by which it shall be bound; or result in the creation or imposition of any Lien upon any of its properties pursuant to the terms of any such indenture, agreement or other instrument (other than the Basic Documents); or violate any law or, to the best of the Seller’s knowledge, any order, rule or regulation applicable to the Seller of any court or of any federal or State regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Seller or its properties.

 

(f)            No Proceedings. As of the date of the Underwriting Agreement, Preliminary Prospectus Date, the Prospectus Date and the Closing Date, there are no proceedings or investigations pending or, to the Seller’s knowledge, 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 might materially and adversely affect the performance by the Seller of its obligations under, or the validity or enforceability of, this Agreement or otherwise be material to the Noteholders, except as otherwise may be disclosed in the Preliminary Prospectus or the Prospectus.

 

Section 6.2.                     Company Existence.  (a)  During the term of this Agreement, the Seller will keep in full force and effect its existence, rights and franchises as a limited liability company under the laws of the jurisdiction of its formation and will obtain and preserve its qualification to do business in each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of this Agreement, the Basic Documents and

 

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each other instrument or agreement necessary or appropriate to the proper administration of this Agreement and the transactions contemplated hereby.

 

(b)           During the term of this Agreement, the Seller shall observe the applicable legal requirements for the recognition of the Seller as a legal entity separate and apart from its Affiliates, including as follows:

 

(i)            the Seller shall maintain company records and books of account separate from those of its Affiliates;

 

(ii)           except as otherwise provided in this Agreement and similar arrangements relating to other securitizations, the Seller shall not commingle its assets and funds with those of its Affiliates;

 

(iii)          the Seller shall hold such appropriate meetings or obtain such appropriate consents of its Board of Directors as are necessary to authorize all the Seller’s actions required by law to be authorized by the Board of Directors, shall keep minutes of such meetings and of meetings of its member(s) and observe all other customary limited liability company formalities (and any successor Seller not a limited liability company shall observe similar procedures in accordance with its governing documents and applicable law);

 

(iv)          the Seller shall at all times hold itself out to the public under the Seller’s own name as a legal entity separate and distinct from its Affiliates; and

 

(v)           all transactions and dealings between the Seller and its Affiliates will be conducted on an arm’s-length basis.

 

Section 6.3.                     Liability of Seller; Indemnities.  The Seller shall be liable in accordance herewith only to the extent of the obligations specifically undertaken by the Seller under this Agreement.

 

(a)           The Seller shall indemnify, defend and hold harmless the Issuing Entity, the Trustee and the Indenture Trustee (and their officers, directors, employees and agents) from and against any taxes that may at any time be asserted against any of them with respect to the sale of the Receivables to the Issuing Entity or the issuance and original sale of the Notes, including any sales, gross receipts, general corporation, tangible personal property, privilege or license taxes (but, in the case of the Issuing Entity, not including any taxes asserted with respect to ownership of the Receivables or federal or other income taxes arising out of the transactions contemplated by this Agreement) and costs and expenses in defending against the same.

 

(b)           The Seller shall indemnify, defend and hold harmless the Issuing Entity, the Trustee and the Indenture Trustee (and their officers, directors, employees and agents) from and against any loss, liability or expense incurred by reason of the Seller’s willful misfeasance, bad faith or negligence in the performance of its duties under this Agreement, or by reason of reckless disregard of its obligations and duties under this Agreement.

 

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

 

Section 6.4.                     Merger or Consolidation of, or Assumption of the Obligations of, Seller.  Any Person: (a) into which the Seller may be merged or consolidated, (b) that may result from any merger or consolidation to which the Seller shall be a party or (c) that may succeed to the properties and assets of the Seller substantially as a whole, which Person (in any of the foregoing cases) executes an agreement of assumption to perform every obligation of the Seller under this Agreement (or is deemed by law to have assumed such obligations), shall be the successor to the Seller hereunder without the execution or filing of any document or any further act by any of the parties to this Agreement; provided, however, that: (i) immediately after giving effect to such transaction, no representation or warranty made pursuant to Section 3.1 shall have been breached and no Servicer Default, and no event that, after notice or lapse of time, or both, would become a Servicer Default shall have occurred and be continuing, (ii) the Seller shall have delivered to the Trustee and the Indenture Trustee an Officer’s Certificate and an Opinion of Counsel each stating that such consolidation, merger or succession and such agreement of assumption comply with this Section and that all conditions precedent, if any, provided for in this Agreement relating to such transaction have been complied with, (iii) the Rating Agency Condition shall have been satisfied with respect to such transaction and (iv) the Seller shall have delivered to the Trustee and the Indenture Trustee an Opinion of Counsel either: (A) stating that, in the opinion of such counsel, all financing statements, continuation statements and amendments thereto have been executed and filed that are necessary fully to preserve and protect the interest of the Trustee and Indenture Trustee, respectively, in the Receivables and reciting the details of such filings, or (B) stating that, in the opinion of such counsel, no such action shall be necessary to preserve and protect such interests.  Notwithstanding anything herein to the contrary, the execution of the foregoing agreement of assumption and compliance with clauses (i), (ii), (iii) and (iv) shall be conditions to the consummation of the transactions referred to in clauses (a), (b) or (c).

 

Section 6.5.                     Limitation on Liability of Seller and Others.  The Seller and any director, officer, employee or agent of the Seller may rely in good faith on the advice of counsel or on any document of any kind prima facie properly executed and submitted by any Person respecting any matters arising hereunder.  The Seller shall not be under any obligation to appear in, prosecute or defend any legal action that shall not be incidental to its obligations under this Agreement, and that in its opinion may involve it in any expense or liability.

 

Section 6.6.                     Seller May Own Certificates or Notes.  The Seller and any Affiliate thereof may in its individual or any other capacity become the owner or pledgee of Certificates or the Notes with the same rights as it would have if it were not the Seller or an Affiliate thereof, except as expressly provided herein or in any other Basic Document.

 

Notwithstanding the foregoing, the Seller shall not sell the Certificates except to an entity (a) that has provided an opinion of counsel to the effect that such sale will not cause the Trust to

 

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be treated as a “publicly traded partnership” under the Code and (b) that either (i) is not an Affiliate of the Seller or (ii) is an Affiliate of the Seller that (A) is a subsidiary of CNHCA or NH Credit, the certificate of formation and limited liability company agreement of which contains restrictions substantially similar to the restrictions contained in the certificate of formation and limited liability company agreement of the Seller and (B) has provided an Opinion of Counsel regarding substantive consolidation of such Affiliate with CNHCA or NH Credit in the event of a bankruptcy filing by CNHCA or NH Credit, as applicable, which is substantially similar to the Opinion of Counsel provided by Seller on the Closing Date, and which may be subject to the same assumptions and qualifications as that opinion.

 

ARTICLE VII
 The Servicer

 

Section 7.1.                     Representations of Servicer.  The Servicer makes the following representations on which the Issuing Entity is deemed to have relied in acquiring the Receivables.  The representations speak as of the execution and delivery of the Agreement and as of the Closing Date, and shall survive the sale of the Receivables to the Issuing Entity and the pledge thereof to the Indenture Trustee pursuant to the Indenture.

 

(a)           Organization and Good Standing.  The Servicer is duly organized and validly existing as a limited liability company in good standing under the laws of the state of its organization, with the 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 has, the power, authority and legal right to service the Receivables and to hold the Receivable Files as custodian.

 

(b)           Due Qualification.  The Servicer is duly qualified to do business as a foreign limited liability company in good standing, and has obtained all necessary licenses and approvals, in all jurisdictions in which the ownership or lease of property or the conduct of its business (including the servicing of the Receivables as required by this Agreement) shall require such qualifications, except where the failure to be so qualified and have such licenses and approvals would not have a material adverse effect on (a) the Trust Estate, (b) Servicer’s performance of its obligations under the Basic Documents to which it is a party, (c) the business or condition (financial or otherwise) of the Servicer or (d) the validity or enforceability of any Receivable.

 

(c)           Power and Authority.  The Servicer 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 have been duly authorized by the Servicer by all necessary limited liability company action.

 

(d)           Binding Obligation.  This Agreement constitutes a legal, valid and binding obligation of the Servicer enforceable against the Servicer in accordance with its terms.

 

(e)           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, or constitute (with or without notice or lapse of time) a

 

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default under, the certificate of formation, limited liability company agreement or by-laws of the Servicer, or any indenture, agreement or other instrument to which the Servicer is a party or by which it shall be bound; or result in the creation or imposition of any Lien upon any of its properties pursuant to the terms of any such indenture, agreement or other instrument (other than this Agreement); or violate any law or, to the best of the Servicer’s knowledge, any order, rule or regulation applicable to the Servicer of any court or of any federal or State regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Servicer or its properties.

 

(f)            No Proceedings. As of the date of the Underwriting Agreement, the Preliminary Prospectus Date, the Prospectus Date and the Closing Date, there are no proceedings or investigations pending or, to the Servicer’s knowledge, threatened against the Servicer, before any court, regulatory body, administrative agency or other tribunal or governmental instrumentality having jurisdiction over the Servicer 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 might materially and adversely affect the performance by the Servicer of its obligations under, or the validity or enforceability of, this Agreement or otherwise be material to the Noteholders, except as otherwise may be disclosed on the Preliminary Prospectus or the Prospectus; and

 

(g)           No Insolvent Obligors. As of the Cutoff Date no Obligor is shown in the Servicer’s Records (including, without limitation the Receivable Files) as the subject of a bankruptcy proceeding.

 

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

 

(a)           The Servicer shall defend, indemnify and hold harmless the Issuing Entity, the Trustee, the Indenture Trustee, the Noteholders, the Certificateholders and the Seller (and any of their officers, directors, employees and agents) from and against any and all costs, expenses, losses, damages, claims and liabilities, arising out of or resulting from:

 

(i)            the use, ownership or operation by the Servicer or any Affiliate thereof of any of the Financed Equipment;

 

(ii)           any taxes that may at any time be asserted against any such Person with respect to the transactions contemplated herein, including any sales, gross receipts, general corporation, tangible personal property, privilege or license taxes (but, in the case of the Issuing Entity, not including any taxes asserted with respect to, and as of the date of, the sale of the Receivables to the Issuing Entity or the issuance and original sale of the Notes and the issuance of the Certificates, or asserted with respect to ownership of the Receivables, or federal or other income taxes arising out of distributions on the Certificates or the Notes) and costs and expenses in defending against the same;

 

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(iii)          the negligence, willful misfeasance or bad faith of the Servicer in the performance of its duties under this Agreement or by reason of reckless disregard of its obligations and duties under this Agreement; and

 

(iv)          the Seller’s or the Issuing Entity’s violation of federal or State securities laws in connection with the offering or sale of the Notes.

 

(b)           The Servicer shall indemnify, defend and hold harmless the Trustee and the Indenture Trustee (and their respective officers, directors, employees and agents) from and against all costs, expenses, losses, claims, damages and liabilities arising out of or incurred in connection with the acceptance or performance of the trusts and duties herein and, in the case of the Trustee, in the Trust Agreement contained, and, in the case of the Indenture Trustee, in the Indenture contained, except to the extent that such cost, expense, loss, claim, damage or liability:

 

(i)            shall be due to the willful misfeasance, bad faith or negligence (except for errors in judgment) of the Trustee or the Indenture Trustee as applicable; or

 

(ii)           shall arise from the breach by the Trustee of any of its representations or warranties set forth in Section 7.3 of the Trust Agreement.

 

(c)           The Servicer shall pay any and all taxes levied or assessed upon all or any part of the Trust Estate.

 

(d)           The Servicer shall pay the Indenture Trustee and the Trustee from time to time reasonable compensation for all services rendered by the Indenture Trustee under the Indenture or by the Trustee under the Trust Agreement (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust).

 

(e)           The Servicer shall, except as otherwise expressly provided in the Indenture or the Trust Agreement, reimburse either the Indenture Trustee or the Trustee, respectively, upon its request for all reasonable expenses, disbursements and advances incurred or made in accordance with the Indenture or the Trust Agreement, respectively, (including the reasonable compensation, expenses and disbursements of its agents and either in-house counsel or outside counsel, but not both), except any such expense, disbursement or advance as may be attributable to the Indenture Trustee’s or the Trustee’s, respectively negligence, bad faith or willful misfeasance.

 

For purposes of this Section, in the event of the termination of the rights and obligations of the Servicer pursuant to Section 8.1, or a resignation by the Servicer pursuant to this Agreement, the Servicer shall be deemed to be the Servicer pending appointment of a Successor Servicer pursuant to Section 8.2.

 

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

 

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Section 7.3.                     Merger or Consolidation of, or Assumption of the Obligations of, Servicer.  Any Person: (a) into which the Servicer may be merged or consolidated, (b) that may result from any merger or consolidation to which the Servicer shall be a party, (c) that may succeed to the properties and assets of the Servicer substantially as a whole, or (d) that is a corporation or limited liability company of which 50% or more of the voting stock or membership interests, respectively, are owned, directly or indirectly, by CNH Global N.V. and which assumes the obligations of the servicer hereunder, which Person (in any of the foregoing circumstances) executes an agreement of assumption to perform every obligation of the Servicer hereunder (or is deemed by law to have assumed such obligations), shall be the successor to the Servicer under this Agreement without further act on the part of any of the parties to this Agreement; provided, however, that: (i) immediately after giving effect to such transaction, no Servicer Default, and no event that, after notice or lapse of time, or both, would become a Servicer Default shall have occurred and be continuing, (ii) the Servicer shall have delivered to the Trustee and Indenture Trustee an Officer’s Certificate and an Opinion of Counsel each stating that such consolidation, merger or succession, if applicable, and such agreement of assumption comply with this Section and that all conditions precedent, if any, provided for in this Agreement relating to such transaction have been complied with, (iii) the Rating Agencies shall have received at least ten days’ prior written notice of such transaction and (iv) the Servicer shall have delivered to the Trustee and the Indenture Trustee an Opinion of Counsel either: (A) stating that, in the opinion of such counsel, all financing statements, continuation statements and amendments thereto have been executed and filed that are necessary fully to preserve and protect the interest of the Trustee and the Indenture Trustee, respectively, in the Receivables and reciting the details of such filings, or (B) stating that, in the opinion of such counsel, no such action shall be necessary to preserve and protect such interests. Notwithstanding anything herein to the contrary, the execution of the foregoing agreement of assumption and compliance with clauses (i), (ii), (iii) and (iv) shall be conditions to the consummation of the transactions referred to in clauses (a), (b) or (c).

 

Section 7.4.                     Limitation on Liability of Servicer and Others.  Neither the Servicer nor any of the directors, officers, employees or agents of the Servicer shall be under any liability to the Issuing Entity, the Noteholders or the Certificateholders, except as provided under this Agreement, for any action taken or for refraining from the taking of any action pursuant to this Agreement or for errors in judgment; provided, however, that this provision shall not protect the Servicer or any such Person against any liability that would otherwise be imposed by reason of willful misfeasance, bad faith or negligence in the performance of its duties or by reason of reckless disregard of obligations and duties under this Agreement.  The Servicer and any director, officer, employee or agent of the Servicer may rely in good faith on the advice of counsel or on any document of any kind prima facie properly executed and submitted by any Person respecting any matters arising hereunder.

 

Except as provided in this Agreement, the Servicer shall not be under any obligation to appear in, prosecute or defend any legal action that shall not be incidental to its duties to service the Receivables in accordance with this Agreement, and that in its opinion may involve it in any expense or liability; provided, however, that the Servicer may undertake any reasonable action that it may deem necessary or desirable in respect of this Agreement, the Basic Documents and the rights and duties of the parties to this Agreement, the Basic Documents and the interests of the Certificateholders under the Trust Agreement and the Noteholders under the Indenture.

 

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Section 7.5.                     NH Credit Not to Resign as Servicer.  Subject to Section 7.3, NH Credit shall not resign from the obligations and duties imposed on it as Servicer under this Agreement except upon determination that the performance of its duties under this Agreement shall no longer be permissible under applicable law and such impermissibility cannot be reasonably and promptly cured. Notice of any such determination shall be communicated to the Trustee and the Indenture Trustee at the earliest practicable time (and, if such communication is not in writing, shall be confirmed in writing at the earliest practicable time) and any such determination shall be evidenced by an Opinion of Counsel to such effect delivered to the Trustee and the Indenture Trustee concurrently with or promptly after such notice.  No such resignation shall become effective until the Indenture Trustee or a Successor Servicer shall have assumed the responsibilities and obligations of NH Credit in accordance with Section 8.2.

 

Section 7.6.                     Servicer to Act as Administrator.  In the event of the resignation or removal of the Administrator and the failure of a successor Administrator to have been appointed and to have accepted such appointment as successor Administrator, the Servicer shall become the successor Administrator (except as set forth in Section 8(e) of the Administration Agreement) and shall be bound by the terms of the Administration Agreement.

 

ARTICLE VIII
 Default

 

Section 8.1.                     Servicer Default.  If any one of the following events (a “Servicer Default”) shall occur and be continuing:

 

(a)           any failure by the Servicer to deliver to the Indenture Trustee for deposit in any of the Trust Accounts or the Certificate Distribution Account any required payment or to direct the Indenture Trustee or the Trustee to make any required distributions therefrom, which failure continues unremedied for three Business Days after written notice of such failure is received by the Servicer from the Trustee or the Indenture Trustee or after discovery of such failure by an officer of the Servicer;

 

(b)           any failure by the Servicer or the Seller, as the case may be, duly to observe or to perform in any material respect any other covenants or agreements (other than as set forth in  clause (a)) of the Servicer or the Seller (as the case may be) set forth in this Agreement or any other Basic Document, which failure shall: (i) materially and adversely affect the rights of Certificateholders or Noteholders and (ii) continue unremedied for a period of 60 days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given: (A) to the Servicer or the Seller (as the case may be) by the Trustee or the Indenture Trustee or (B) to the Servicer or the Seller (as the case may be) and to the Trustee and the Indenture Trustee, by the Noteholders or Certificateholders, as applicable, evidencing not less than 25% of the Outstanding Amount of the Notes or 25% of the beneficial interest in the Issuing Entity;

 

(c)           an Insolvency Event occurs with respect to the Servicer; or

 

(d)           [Reserved];

 

then, and in each and every case, so long as the Servicer Default shall not have been remedied, either the Indenture Trustee, or the Holders of Notes evidencing not less than 25% of the

 

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Outstanding Amount of the Notes, by notice then given in writing to the Servicer (and to the Indenture Trustee and the Trustee if given by the Noteholders), may terminate all the rights and obligations (other than the obligations set forth in Section 7.2) of the Servicer under this Agreement.  On or after the receipt by the Servicer of such written notice, all authority and power of the Servicer under this Agreement, whether with respect to the Notes, the Certificates, the Receivables or otherwise, shall, without further action, pass to and be vested in the Indenture Trustee or such Successor Servicer as may be appointed under Section 8.2; and, without limitation, the Indenture Trustee and the Trustee are hereby authorized and empowered to execute and deliver, on behalf of the predecessor Servicer, as attorney-in-fact or otherwise, any and all documents and other instruments, and to do or accomplish all other acts or things necessary or appropriate to effect the termination of the Servicer, whether to complete the transfer and endorsement of the Receivables and related documents, or otherwise.  The predecessor Servicer shall cooperate with the Successor Servicer, the Indenture Trustee and the Trustee in effecting the termination of the responsibilities and rights of the predecessor Servicer under this Agreement, including the transfer to the Successor Servicer for administration by it of: (i) all cash amounts that shall at the time be held by the predecessor Servicer for deposit, or shall thereafter be received by it with respect to a Receivable and (ii) all Receivable Files. All reasonable costs and expenses (including attorneys’ fees) incurred in connection with such transfer, including the costs of transferring the Receivable Files to the Successor Servicer and amending this Agreement to reflect its succession as Servicer, shall be paid by the predecessor Servicer upon presentation of reasonable documentation of such costs and expenses.  Upon receipt of written notice of the occurrence of a Servicer Default, the Trustee shall give written notice thereof to the Rating Agencies and/or the Seller pursuant to Section 10.18.

 

Section 8.2.                     Appointment of Successor Servicer.  (a)  Upon the Servicer’s receipt of notice of termination, pursuant to Section 8.1, or the Servicer’s resignation in accordance with this Agreement, the predecessor Servicer shall continue to perform its functions as Servicer under this Agreement, in the case of termination, only until the date specified in such termination notice or, if no such date is specified in a notice of termination, until receipt of such notice and, in the case of resignation, until the earlier of: (x) the date 60 days from the delivery to the Trustee and the Indenture Trustee of written notice of such resignation (or written confirmation of such notice) in accordance with this Agreement and (y) the date upon which the predecessor Servicer shall become unable to act as Servicer, as specified in the notice of resignation and accompanying Opinion of Counsel. In the event of the Servicer’s termination hereunder, the Issuing Entity shall appoint a Successor Servicer acceptable to the Indenture Trustee, and the Successor Servicer shall accept its appointment by a written assumption in form acceptable to the Indenture Trustee.  In the event that a Successor Servicer has not been appointed at the time when the predecessor Servicer has ceased to act as Servicer in accordance with this Section, the Indenture Trustee without further action shall automatically be appointed the Successor Servicer and shall be entitled to the Servicing Fee.  Notwithstanding the above, the Indenture Trustee shall, if it shall be unable so to act, appoint or petition a court of competent jurisdiction to appoint any established institution, having a net worth of not less than $50,000,000 and whose regular business shall include the servicing of equipment receivables, as the successor to the Servicer under this Agreement.

 

(b)           Upon appointment, the Successor Servicer (including the Indenture Trustee acting as Successor Servicer) shall be the successor in all respects to the predecessor

 

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Servicer (except with respect to responsibilities and obligations of the predecessor Servicer set forth in Section 7.2) and shall be subject to all the responsibilities, duties and liabilities arising thereafter relating thereto placed on the predecessor Servicer and shall be entitled to the Servicing Fee and all the rights granted to the predecessor Servicer by this Agreement.  None of the Indenture Trustee or any other Successor Servicer shall be deemed to be liable for or in breach of any obligations hereunder due to any act or omission of a predecessor Servicer, including but not limited to failure of such predecessor Servicer to timely deliver to the Indenture Trustee any required information pertaining to the Receivables, any funds required to be deposited with the Indenture Trustee, or any breach of duty of such predecessor Servicer to cooperate with a transfer of servicing as required hereunder.  Any Successor Servicer shall from time to time provide to NH Credit such information as NH Credit shall reasonably request with respect to the Receivables and collections thereon.

 

(c)           Subject to the Indenture Trustee’s right to appoint a Successor Servicer pursuant to the last sentence of clause (a) after the Indenture Trustee has become Servicer, the Servicer may not resign unless it is prohibited from serving as such by law as evidenced by an Opinion of Counsel to such effect delivered to the Indenture Trustee and the Trustee.

 

(d)           Notwithstanding anything else herein to the contrary, in no event shall the Indenture Trustee be liable for any transition expenses, servicing fee or for any differential in the amount of the Servicing Fee paid hereunder and the amount necessary to induce any Successor Servicer to act as Successor Servicer under this Agreement and the transactions set forth or provided for herein or be liable for or be required to make any servicer advances.

 

Section 8.3.                     Notification to Noteholders and Certificateholders.  Upon any termination of, or appointment of a successor to, the Servicer pursuant to this  Article VIII , the Trustee shall give prompt written notice thereof to the Certificateholders and the Indenture Trustee shall give prompt written notice thereof to the Noteholders and, subject to Section 10.18, the Rating Agencies.

 

Section 8.4.                     Waiver of Past Defaults.  The Noteholders of Notes evidencing not less than a majority of the Note Balance (or the Holders of Certificates evidencing not less than 50% of the beneficial interest in the Issuing Entity, in the case of any default that does not materially and adversely affect the Indenture Trustee or the Noteholders) may, on behalf of all the Noteholders and Certificateholders, waive in writing any default by the Servicer in the performance of its obligations hereunder and its consequences, except a default in making any required deposits to or payments from any of the Trust Accounts in accordance with this Agreement.  Upon any such waiver of a past default, such default shall cease to exist, and any Servicer Default arising therefrom shall be deemed to have been remedied for every purpose of this Agreement.  No such waiver shall extend to any subsequent or other default or impair any right consequent thereto.

 

ARTICLE IX
 Termination

 

Section 9.1.                     Optional Purchase of All Receivables.  (a)  As of the first day of any Collection Period immediately preceding a Payment Date as of which the Pool Balance is 10%

 

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or less of the Initial Pool Balance, CNHCA shall have the option (but no obligation) to purchase all of the Trust Estate, other than the Trust Accounts.  To exercise such option, CNHCA shall deposit, pursuant to Section 5.5, in the Collection Account an amount equal to the aggregate Purchase Amount for the Receivables plus the value of any other property held by the Trust, such value to be as reasonably determined by CNHCA, and CNHCA shall succeed to all interests in, to and under the Trust Estate, other than the Trust Accounts; provided that CNHCA shall not exercise such option unless the amount so deposited, together with funds on deposit in the Trust Accounts, would be sufficient to pay the Redemption Price pursuant to Section 10.1(a) of the Indenture.

 

(b)           Upon any sale of the assets of the Trust, the Servicer shall instruct the Indenture Trustee to deposit the proceeds from such sale after all payments and reserves therefrom have been made (the “Sale Proceeds”) in the Collection Account.  On the Payment Date, or, if such proceeds are not so deposited on a Payment Date, on the first Payment Date following the date on which the Sale Proceeds are deposited in the Collection Account, the Servicer shall instruct the Indenture Trustee to make the following payments and deposits (after the application on such Payment Date of the Total Distribution Amount and funds on deposit in the Spread Account pursuant to Sections 5.6 and 5.7) from the Sale Proceeds and any funds remaining on deposit in the Spread Account (including the proceeds of any sale of investments therein as described in the following sentence):

 

(i)            [Reserved];

 

(ii)           second, to pay the Servicer its accrued and unpaid Servicing Fee;

 

(iii)          third, to the Indenture Trustee for amounts due under Section 6.7 of the Indenture;

 

(iv)          fourth, to the Administrator, its accrued and unpaid Administration Fees;

 

(v)           fifth, to the Note Distribution Account for distribution pursuant to Section 8.2(e) of the Indenture to the extent of all amounts payable under such Section, other than any amounts that would be deposited into the Certificate Distribution Account under such  Section;

 

(vi)          sixth, to the Servicer, to cover any accrued and unpaid reimbursable expenses; and

 

(vii)         seventh, to the Issuing Entity for distribution to the Certificateholders.

 

Any investments on deposit in the Spread Account that will not mature on or before such Payment Date shall be sold by the Indenture Trustee at such time as will result in the Indenture Trustee receiving the proceeds from such sale not later than the Transfer Date preceding such Payment Date.

 

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(c)           As described in Article IX of the Trust Agreement, once CNHCA has made its determination to make the purchase described under Section 9.1(a) (the “Clean-Up Call”), the Servicer shall send notice of the anticipated dissolution of the Trust to the Trustee as soon as practicable after the Servicer has received notice of the Clean-Up Call.

 

(d)           Following the satisfaction and discharge of the Indenture and the payment in full of the principal of and interest on the Notes, the Certificateholders will succeed to the rights of the Noteholders hereunder and the Trustee will succeed to the rights of, and assume the obligations of, the Indenture Trustee pursuant to this Agreement.

 

ARTICLE X
 Miscellaneous Provisions

 

Section 10.1.                   Amendment.  Any term or provisions of this Agreement may be amended by the Issuing Entity, the Seller and the Servicer without the consent of the Indenture Trustee, any Certificateholder, any Noteholder, the Trustee or any other Person subject to the satisfaction of one of the following conditions:

 

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

 

(ii)           the Seller and the Servicer deliver an Officer’s Certificate of the Seller and Servicer, respectively, to the Indenture Trustee to the effect that such amendment will not materially and adversely affect the interests of the Noteholders or the Certificateholders.

 

An amendment shall be deemed not to adversely affect in any material respect the interests of any Noteholders of a Class of Notes if the Rating Agency Condition has been satisfied with respect to such amendment for such Class of Notes.

 

This Agreement may also be amended from time to time by the Seller, the Servicer and the Issuing Entity, with the written consent of the Indenture Trustee, but without the consent of any of the Noteholders or the Certificateholders, to: (x) replace the Spread Account with another form of credit enhancement as long as such substitution will not result in a reduction or withdrawal of the rating of any Class of the Notes or (y) add credit enhancement for the benefit of any Class of the Notes.

 

This Agreement may also be amended from time to time by the Seller, the Servicer and the Issuing Entity, with the written consent of (a) the Indenture Trustee, (b) Noteholders holding Notes evidencing not less than a majority of the Note Balance, and (c) the Holders of Certificates evidencing not less than 50% of the beneficial interest in the Trust, for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in any manner the rights of the Noteholders or the Certificateholders; provided, however, that no such amendment shall: (a) reduce the interest rate or principal of any Note or Certificate, or delay the Class Final Scheduled Maturity Date of any Note or (b) reduce the aforesaid percentage of the Notes and the Certificates that are required to consent to any such

 

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amendment, without the consent of the holders of all the outstanding Notes and Certificates affected thereby.

 

Promptly after the execution of any such amendment or consent (or, in the case of the Rating Agencies, prior thereto), the Trustee shall furnish written notification of the substance of such amendment or consent to each Certificateholder, the Indenture Trustee, and, subject to Section 10.18, to each of the Rating Agencies.

 

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

 

Prior to the execution of any amendment to this Agreement, the Trustee and the Indenture Trustee shall be entitled to receive and rely upon an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this Agreement and the other Basic Documents and that all conditions precedent to such execution and delivery by the Trustee and the Indenture Trustee have been satisfied. The Trustee and the Indenture Trustee may, but shall not be obligated to, enter into any such amendment that affects the Trustee’s or the Indenture Trustee’s, as applicable, own rights, duties or immunities under this Agreement or otherwise.

 

Notwithstanding anything herein to the contrary (other than as provided in the following paragraph), any term or provision of this Agreement may be amended by the Seller, and the Servicer without the consent of any of the Noteholders, Certificateholders, the Issuing Entity, the Indenture Trustee or any other Person to add, modify or eliminate any provisions as may be necessary or advisable in order to comply with or obtain more favorable treatment under or with respect to any law or regulation or any accounting rule or principle (whether now or in the future in effect); it being a condition to any such amendment that the Rating Agency Condition shall have been satisfied.

 

Section 10.2.                   Protection of Title to Trust.  (a)  The Seller shall execute and file such financing statements, and cause to be executed and filed such continuation statements, all in such manner and in such places as may be required by applicable law fully to preserve, maintain and protect the right, title and interest of the Issuing Entity and the interests of the Indenture Trustee in the Receivables, the other property sold hereunder and in the proceeds thereof.  The Seller shall deliver (or cause to be delivered) to the Trustee and the Indenture Trustee file-stamped copies of, or filing receipts for, any document filed as provided above as soon as available following such filing.  The Issuing Entity and the Indenture Trustee 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 paragraph.

 

(b)           Neither the Seller nor the Servicer shall change its name, identity or organizational structure in any manner that would or could reasonably be expected to make any financing statement or continuation statement filed in accordance with paragraph (a) seriously 

 

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misleading within the applicable provisions of the UCC and shall give the Trustee and the Indenture Trustee notice thereof no later than 10 days after the effective date thereof and shall promptly file appropriate amendments to all previously filed financing statements or continuation statements.

 

(c)           Each of the Seller and the Servicer shall have an obligation to give the Trustee and the Indenture Trustee notice within 15 days after (and, in any case, no later than 10 days after the effective date thereof) of any relocation of its principal executive office or its “location” as defined in Section 9-307 of the UCC and if, as a result of such relocation, the applicable provisions of the UCC would require the filing of any amendment of any previously filed financing or continuation statement or of any new financing statement and shall promptly file any such amendment. The Servicer shall at all times maintain each office from which it shall service Receivables, and its “location” (as defined in Section 9-307 of the UCC), within the United States of America.

 

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

 

(e)           The Servicer shall maintain its computer systems so that, from and after the time of sale under this Agreement of the Receivables, the Servicer’s master computer records (including any backup archives) that refer to a Receivable shall indicate clearly the interest of the Issuing Entity and the Indenture Trustee in such Receivable and that such Receivable is owned by the Issuing Entity and has been pledged to Deutsche Bank Trust Company Americas, as Indenture Trustee. Indication of the Issuing Entity’s and the Indenture Trustee’s interest in a Receivable may be deleted from or modified on the Servicer’s computer systems when, and only when, the related Receivable shall have been paid in full or repurchased or purchased by the Servicer, or otherwise transferred to the Servicer or CNHCA pursuant to Section 4.3 hereof.

 

(f)            If at any time the Seller or the Servicer shall propose to sell, grant a security interest in, or otherwise transfer any interest in equipment receivables to any prospective purchaser, lender or other transferee, the Servicer shall give to such prospective purchaser, lender or other transferee computer tapes, records or printouts (including any restored from backup archives) that, if they shall refer in any manner whatsoever to any Receivable, shall indicate clearly that such Receivable has been sold and is owned by the Issuing Entity and has been pledged to the Indenture Trustee.  From and after the date of this Agreement, the Servicer will not sell, pledge, assign or transfer to any Person, or grant, create, incur, assume or suffer to exist any Lien on, any interest in, to and under the Receivables (other than Reacquired Receivables).

 

(g)           The Servicer shall permit the Indenture Trustee and its agents at any time during normal business hours to inspect, audit and make copies of and abstracts from the Servicer’s records regarding any Receivable.  The Indenture Trustee and its agents shall give reasonable notice of any such inspection or audit and such inspection shall be conducted in a manner that does not cause undue disruption or interference with the Servicer’s business.

 

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(h)           Upon request, the Servicer shall furnish to the Trustee or to the Indenture Trustee, within five Business Days, a list of all Receivables (by contract number and name of Obligor) then held as part of the Trust, together with a reconciliation of such list to the Schedule of Receivables and to each of the Servicer’s Certificates furnished before such request indicating removal of Receivables from the Trust.

 

(i)            The Servicer shall deliver to the Trustee and the Indenture Trustee:

 

(1)           promptly after the execution and delivery of this Agreement, an Opinion of Counsel either: (A) stating that, in the opinion of such counsel, all financing statements and continuation statements have been executed and filed that are necessary fully to preserve and protect the interest of the Trustee and the Indenture Trustee in the Receivables, and reciting the details of such filings or referring to prior Opinions of Counsel in which such details are given, or (B) stating that, in the opinion of such counsel, no such action shall be necessary to preserve and protect such interest; and

 

(2)           within 90 days after the beginning of each calendar year beginning with the first calendar year beginning more than three months after the Cutoff Date, an Opinion of Counsel, dated as of a date during such 90-day period, either: (A) stating that, in the opinion of such counsel, all financing statements and continuation statements have been executed and filed that are necessary fully to preserve and protect the interest of the Trustee and the Indenture Trustee in the Receivables, and reciting the details of such filings or referring to prior Opinions of Counsel in which such details are given, or (B) stating that, in the opinion of such counsel, no such action shall be necessary to preserve and protect such interest.

 

Each Opinion of Counsel referred to in clause (1) or (2) shall specify any action necessary (as of the date of such opinion) to be taken in the following year to preserve and protect such interest.

 

(j)            The Seller shall, to the extent required by applicable law, cause the Certificates and the Notes to be registered with the Commission pursuant to Section 12(b) or Section 12(g) of the Exchange Act within the time periods specified in such sections.

 

(k)           [Reserved].

 

Section 10.3.                   Notices.  All demands, notices, directions, instructions and communications upon or to the Seller, the Servicer, the Issuing Entity, the Trustee, the Indenture Trustee or, subject to Section 10.18, the Rating Agencies under this Agreement shall be in writing, personally delivered or mailed by certified mail, return receipt requested, or by facsimile, and shall be deemed to have been duly given upon receipt:  (a) in the case of the Seller, to CNH Capital Receivables LLC, 6900 Veterans Boulevard, Burr Ridge, Illinois 60527, Attention: Assistant Treasurer, (telephone: (630) 887-2095) (facsimile: (630) 887-5448), (b) in the case of the Servicer, to New Holland Credit Company, LLC, 100 Brubaker Avenue, New Holland, Pennsylvania 17557, Attention: Finance Manager (telephone (717) 355-3091) 

 

35

 

(facsimile: (630) 887-5448); with a copy to:  New Holland Credit Company, LLC, 6900 Veterans Boulevard, Burr Ridge, Illinois 60527, Attention: Assistant Treasurer, (facsimile: (630) 887-5448), (c) in the case of the Issuing Entity or the Trustee, at the Trustee’s Corporate Trust Office, (d) in the case of the Indenture Trustee, at its Corporate Trust Office, (e) in the case of Standard & Poor’s, if Standard & Poor’s is a Rating Agency, to Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business, 55 Water Street, New York, New York 10041, Attention: Asset Backed Surveillance Department, and (f) in the case of Fitch, Inc., if Fitch, Inc. is a Rating Agency, to Fitch, Inc., 70 W. Madison Street, Suite 11, Chicago, Illinois 60602.

 

Section 10.4.                   Assignment.  Notwithstanding anything to the contrary contained herein, except as provided in Sections 5.7, 6.4 and 7.3 and as provided in the provisions of this Agreement concerning the resignation of the Servicer, this Agreement may not be assigned by the Seller or the Servicer, except that the Seller may assign any or all of its rights to payment under this Agreement.

 

Section 10.5.                   Limitations on Rights of Others.  The provisions of this Agreement are solely for the benefit of the Seller, the Servicer, the Issuing Entity, the Trustee, the Certificateholders, the Indenture Trustee and the Noteholders, and nothing in this Agreement, whether express or implied, shall be construed to give to any other Person any legal or equitable right, remedy or claim in the Trust Estate or under or in respect of this Agreement or any covenants, conditions or provisions contained herein.

 

Section 10.6.                   Severability.  Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

Section 10.7.                   Separate Counterparts.  This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.

 

Section 10.8.                   Headings.  The headings of the various Articles and Sections herein are for convenience of reference only and shall not define or limit any of the terms or provisions hereof.

 

Section 10.9.                   Governing Law.  This Agreement shall be construed in accordance with the laws of the State of New York, and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with such laws.

 

Section 10.10.                 Assignment to Indenture Trustee.  The Seller hereby acknowledges and consents to any mortgage, pledge, assignment and grant of a security interest by the Issuing Entity to the Indenture Trustee pursuant to the Indenture for the benefit of the Noteholders of all right, title and interest of the Issuing Entity in, to and under the Receivables and/or the assignment of any or all of the Issuing Entity’s rights and obligations hereunder to the Indenture Trustee, and agrees that enforcement of a right or remedy hereunder by the Indenture Trustee 

 

36

 

shall have the same force and effect as if the right or remedy had been enforced or executed by the Issuing Entity.

 

Section 10.11.                 Nonpetition Covenants.  (a)  Notwithstanding any prior termination of this Agreement, the Servicer and the Seller shall not, prior to the date that is one year and one day after the termination of this Agreement, with respect to the Issuing Entity, acquiesce, petition or otherwise invoke or cause the Issuing Entity to invoke the process of any court or governmental authority for the purpose of commencing or sustaining a case against the Issuing Entity under any federal or State bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Issuing Entity or any substantial part of its property, or ordering the winding up or liquidation of the affairs of the Issuing Entity. The foregoing shall not limit the right of the Servicer and the Seller to file any claim in or otherwise take any action with respect to any such insolvency proceeding that was instituted against the Issuing Entity by any Person other than the Servicer or the Seller.

 

(b)           Notwithstanding any prior termination of this Agreement, the Servicer shall not, prior to the date that is one year and one day after the termination of this Agreement, with respect to the Seller, acquiesce, petition or otherwise invoke or cause the Seller to invoke the process of any court or governmental authority for the purpose of commencing or sustaining a case against the Seller under any federal or State bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Seller or any substantial part of its property, or ordering the winding up or liquidation of the affairs of the Seller. The foregoing shall not limit the right of the Servicer to file any claim in or otherwise take any action with respect to any such insolvency proceeding that was instituted against the Seller by any Person other than the Servicer.

 

Section 10.12.                 Limitation of Liability of Trustee and Indenture Trustee.  (a)  Notwithstanding anything contained herein to the contrary, this Agreement has been countersigned by Wilmington Trust Company, not in its individual capacity but solely in its capacity as Trustee of the Issuing Entity, and in no event shall Wilmington Trust Company, in its individual capacity or any beneficial owner of the Issuing Entity have any liability for the representations, warranties, covenants, agreements or other obligations of the Issuing Entity hereunder or in any of the certificates, notices or agreements delivered pursuant hereto, as to all of which recourse shall be had solely to the assets of the Issuing Entity.

 

(b)           Notwithstanding anything contained herein to the contrary, this Agreement has been accepted by Deutsche Bank Trust Company Americas, not in its individual capacity but solely as Indenture Trustee, and in no event shall Deutsche Bank Trust Company Americas have any liability for the representations, warranties, covenants, agreements or other obligations of the Issuing Entity hereunder or in any of the certificates, notices or agreements delivered pursuant hereto, as to all of which recourse shall be had solely to the assets of the Issuing Entity.

 

Section 10.13.                 Conditions Precedent to Other Financing Transactions.  The Seller shall not enter into any receivables sale or other financing transaction unless either the appropriate documents relating thereto contain provisions substantially to the effect set out in 

 

37

 

Sections 11.17 and 11.19 of the Indenture or such transaction otherwise shall have satisfied the Rating Agency Condition.

 

Section 10.14.                 Information Requests.  The parties hereto shall provide any information reasonably requested by the Servicer, the Issuing Entity or the Seller or any of their Affiliates, at the expense of such party, in order to comply with or obtain more favorable treatment under any current or future law, rule, regulation, accounting rule or principle.

 

Section 10.15.                 Information to Be Provided by the Indenture Trustee.

 

(a)           For so long as the Issuing Entity is required to report under the Exchange Act, the Indenture Trustee shall (i) on or before the fifth Business Day of each month, provide to the Seller, in writing, such information regarding the Indenture Trustee as is requested by the Seller for the purpose of compliance with Item 1117 of Regulation AB; provided, however, that the Indenture Trustee shall not be required to provide such information in the event that there has been no change to the information previously provided by the Indenture Trustee to Seller, and (ii) as promptly as practicable following notice to or discovery by a Responsible Officer of the Indenture Trustee of any changes to such information, provide to the Seller, in writing, such updated information.

 

(b)           As soon as available but no later than March 15 of each calendar year for so long as the Issuing Entity is required to report under the Exchange Act, commencing in 2012, the Indenture Trustee shall:

 

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

 

(ii)           deliver to the Seller a report of a registered public accounting firm that attests to, and reports on, the assessment of compliance made by the Indenture Trustee and delivered pursuant to the preceding paragraph. Such attestation shall be in accordance with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and the Exchange Act;

 

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

 

(iv)          notify the Seller in writing of any affiliations or relationships (as described in Item 1119 of Regulation AB) between the Indenture Trustee and any item 1119 Party, provided, that no such notification need be made if the affiliations or 

 

38

 

relationships are unchanged from those provided in the notification in the prior calendar year.

 

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

 

Section 10.16.                 Form 8-K Filings.  So long as the Seller is filing Exchange Act Reports with respect to the Issuer, the Indenture Trustee shall promptly notify the Seller, but in no event later than one (1) Business Day after its occurrence, of any Reportable Event of which a Responsible Officer of the Indenture Trustee has actual knowledge (other than a Reportable Event described in clause (a) or (b) of the definition thereof as to which the Seller or the Servicer has actual knowledge).

 

Section 10.17.                 Indemnification.  (a) Deutsche Bank Trust Company Americas shall indemnify the Seller, each Affiliate of the Seller and each Person who controls any of such parties (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act) and the respective present and former directors, officers, employees and agents of each of the foregoing, and shall hold each of them harmless from and against any losses, damages, penalties, fines, forfeitures, legal fees and expenses and related costs, judgments, and any other costs, fees and expenses that any of them may sustain arising out of or based upon:

 

(1)           (A) any untrue statement of a material fact contained in the Servicing Criteria assessment and any other information required to be provided by Deutsche Bank Trust Company Americas to the Seller or its affiliates under Section 10.15 (excluding clause (b)(ii) of Section 10.15), 10.16 (such information, together with the DB Trust Information as defined in the Certificate of Deutsche Bank Trust Company Americas attached hereto as Exhibit J, the “Provided Information”), or (B) the omission or alleged omission to state in the Provided Information a material fact required to be stated in the Provided Information, or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, by way of clarification, that clause (B) of this paragraph shall be construed solely by reference to the related information and not to any other information communicated in connection with a sale or purchase of securities, without regard to whether the Provided Information or any portion thereof is presented together with or separately from such other information; or

 

(2)           any failure by Deutsche Bank Trust Company Americas to deliver any Servicing Criteria assessment, information, report, certification, accountants’ letter or other material when and as required under Sections 10.15 and 10.16;

 

(b)           In the case of any failure of performance described in clause (a)(2) of this Section, Deutsche Bank Trust Company Americas shall promptly reimburse the Seller for all costs reasonably incurred in order to obtain the information, report, certification, accountants’ letter or other material not delivered as required by Deutsche Bank Trust Company Americas.

 

39

 

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

 

(c)           The Seller agrees to indemnify and hold harmless, Deutsche Bank Trust Company Americas  and its officers, directors, shareholders, employees, agents and each Person, if any, who controls Deutsche Bank Trust Company Americas within the meaning of either Section 15 of the Securities Act or Section 20 of the Securities Exchange Act from and against, any and all claims, losses, liabilities, actions, suits, judgments demands, damages, costs or expenses (including reasonable fees and expenses of attorneys) of any nature resulting from or directly related to (i) any untrue statement of a material fact contained under the heading “Depositor” in the base prospectus contained in the Preliminary Prospectus or the Prospectus, or (ii) any omission or alleged omission to state therein a material fact required to be stated under the heading “Depositor” in the base prospectus contained in the Preliminary Prospectus, the Prospectus or necessary to make the statements under the heading “Depositor” in the base prospectus contained in the Preliminary Prospectus or the Prospectus, in the light of the circumstances in which they were made, not misleading, to the extent that such untrue statement or alleged untrue statement or omission or alleged omission relates to information set forth under the heading “Depositor” in the base prospectus contained in the Preliminary Prospectus or the Prospectus.

 

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

 

Section 10.18.                 Communications with Rating Agencies.  The parties hereto (other than the Seller and its Affiliates but excluding the Issuing Entity) agree that any notices or requests to, or any other written communications with, any of the Rating Agencies, or any of their respective officers, directors or employees, to be given or provided to such Rating Agencies pursuant to, in connection with or related, directly or indirectly, to the Basic Documents, the Collateral or the Notes, shall be in each case either (i) furnished to the Seller who shall forward such communication to the Rating Agencies, or (ii) furnished directly to the Rating Agencies with a prior copy to the Seller.  In either case, the parties hereto (other than the Seller and its Affiliates but excluding the Issuing Entity) further agree to provide such notices, requests and communications or copies thereof, as applicable, to the Seller at least one Business Day prior to the date when such notices, requests and communications are required to be delivered (or are in fact delivered, whichever is earlier) to the Rating Agencies pursuant to the Basic Documents.  So long as any Notes are Outstanding, each party hereto (other than the Seller and its Affiliates but excluding the Issuing Entity) agrees that neither it nor any party on its behalf shall engage in any oral communications with respect to the transactions contemplated hereby, under the Basic Documents or in any way relating to the Notes with any Rating Agency or any of their respective officers, directors or employees, without the participation of the Seller.

 

(signature page follows)

 

40

 

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.

 

	
 
    	
CNH   EQUIPMENT TRUST 2011-B
    
	
 
    	
 
    
	
 
    	
By:
    	
Wilmington   Trust Company,
    
	
 
    	
 
    	
not   in its individual capacity, but
    
	
 
    	
 
    	
solely   as Trustee of the Trust
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
CNH   CAPITAL RECEIVABLES LLC
    
	
 
    	
as   Seller
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   Douglas S. MacLeod
    
	
 
    	
 
    	
Title:   Assistant Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
NEW   HOLLAND CREDIT COMPANY, LLC
    
	
 
    	
as   Servicer
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   Douglas S. MacLeod
    
	
 
    	
 
    	
Title:   Assistant Treasurer
    
	
 
    	
 
    	
 
    
	
Acknowledged   and Accepted:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Deutsche   Bank Trust Company Americas,
    	
 
    	
 
    
	
not in its individual capacity
    	
 
    	
 
    
	
but solely as Indenture Trustee
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
 
    	
 
    

 

 

Sale and Servicing Agreement

 

 

EXHIBIT A
 to Sale and Servicing Agreement

 

[RESERVED]

 

A-1

 

EXHIBIT B
 to Sale and Servicing Agreement

 

[RESERVED]

 

B-1

 

EXHIBIT C
 to Sale and Servicing Agreement

 

FORM OF SERVICER’S CERTIFICATE

 

Wilmington Trust Company

1100 North Market Street,

Wilmington, Delaware 19890,

Attention: Corporate Trust Administration

 

Deutsche Bank Trust Company Americas 
 60 Wall Street
 NYC 60-2606
 New York, New York  10005

	
Telephone:
    	
212-250-4855
    
	
Facsimile:
    	
212-553-2459
    
	
Attention:
    	
TSS-SFS
    

 

CNH Capital Receivables LLC
 6900 Veterans Boulevard
 Burr Ridge, Illinois  60527
 Attention:  Assistant Treasurer

 

[Insert each Rating Agency, if any]

 

C-1

 

CNH Equipment Trust 2011-B

 

$212,000,000 Class A-1 0.38439% Asset Backed Notes due October 12, 2012

 

$298,000,000 Class A-2 0.71% Asset Backed Notes due December 15, 2014

 

$244,000,000 Class A-3 0.91% Asset Backed Notes due August 15, 2016

 

$96,000,000 Class A-4 1.29% Asset Backed Notes due September 15, 2017

 

$25,838,000 Class B 2.25% Asset Backed Notes due March 15, 2018

 

Asset Backed Certificate

 

Please contact [                ] at [      ]-[      ]-[        ] with any questions regarding this report or email abs@cnh.com

 

For additional information consult http://investors.cnh.com

 

	
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64
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
65
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
66
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
67
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
68
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
69
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
70
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
71
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
72
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
73
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
74
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
75
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
76
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
77
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
78
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total Amount of Scheduled Cashflow
    	
 
    	
Total
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Discount Rate
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Beginning Contract Value
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Scheduled Contract Value Decline
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Unscheduled Contract Value Decline
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Additional Contract Value Added
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ending Contract Value
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

C-3

 

1

 

 

 

CNH Equipment Trust 2011-B

 

$212,000,000 Class A-1 0.38439% Asset Backed Notes due October 12, 2012

 

$298,000,000 Class A-2 0.71% Asset Backed Notes due December 15, 2014

 

$244,000,000 Class A-3 0.91% Asset Backed Notes due August 15, 2016

 

$96,000,000 Class A-4 1.29% Asset Backed Notes due September 15, 2017

 

$25,838,000 Class B 2.25% Asset Backed Notes due March 15, 2018

 

Asset Backed Certificate

 

	
Dated   Date (30/360)
    
	
Dated   Date (act/360)
    
	
Scheduled   Payment Date
    
	
Actual   Payment Date
    
	
Days   in accrual period (30/360)
    
	
Days   in accrual period (act/360)
    
	
Note   Distribution Account deposit
    
	
Certificate   Distribution Account deposit
    
	
First   Principal Payment Amount
    
	
Note   Monthly Principal Distributable Amount
    
	
Turbo   Principal Payment Amount
    
	
Spread   Account Deposit
    
	
Amount   required to be deposited into the Collection Account during the calendar   month
    
	
 
    
	
Collateral Summary
    
	
Wtd.   Average Discount Rate
    
	
Beginning   Contract Value
    
	
Scheduled   Contract Value Decline
    
	
Unscheduled   Contract Value Decline
    
	
Additional   Contract Value Purchased
    
	
Ending   Contract Value
    
	
 
    
	
Total   Beginning Balance (Pool Balance)
    
	
Pool   Balance as of end of last day of preceding Collection Period
    
	
Total   Ending Balance (Pool Balance)
    
	
 
    
	
Purchase   Amount of Receivables purchased due to Modification Purchase Events in the   related Collection Period
    
	
Purchase   Amount of all other purchases and repurchases in the related Collection   Period
    
	
 
    
	
Collections and Reinvestment Income
    
	
Receipts   During the period (net of servicer’s liquidation expenses)
    
	
 
    
	
Warranty   Repurchases
    
	
Contracts   deferred beyond Final Scheduled Maturity Date
    
	
Government   obligors
    
	
Total   Warranty Repurchases
    

 

C-4

 

	
Total   Collections For The Period
    
	
 
    
	
Reinvestment   Income
    
	
 
    
	
Total   Collections + Reinvestment Income For The Period
    
	
 
    
	
Other
    

 

 

2

 

 

 

CNH Equipment Trust 2011-B

 

$212,000,000 Class A-1 0.38439% Asset Backed Notes due October 12, 2012

 

$298,000,000 Class A-2 0.71% Asset Backed Notes due December 15, 2014

 

$244,000,000 Class A-3 0.91% Asset Backed Notes due August 15, 2016

 

$96,000,000 Class A-4 1.29% Asset Backed Notes due September 15, 2017

 

$25,838,000 Class B 2.25% Asset Backed Notes due March 15, 2018

 

Asset Backed Certificate

 

Actual Payment Date 

 

	
 
    	
 
    	
General
    	
 
    	
Party Receiving
    	
 
    
	
 
    	
 
    	
Purpose of
    	
 
    	
Fee or Expense
    	
 
    
	
Calculation of Distributable Amounts 
    	
 
    	
Fee or Expense
    	
 
    	
Amount
    	
 
    
	
CNH or ? 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Current Servicing Fee Due 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Past Due Servicing Fee 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total Servicing Fee Due 
    	
 
    	
Provide for servicer as required
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Current Administration Fee Due 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Past Due Administration Fee 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total Administration Fee Due 
    	
 
    	
Provide for trust administrator
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Reimburseable Expenses of the Servicer Due 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Past Due Reimburseable Expenses of the Servicer 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total Reimburseable Expenses of the Servicer Due 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

	
 
    	
 
    	
To cover
   expenses of
   servicer
    	
 
    
	
Total Principal Balance of Notes (Beginning of   Period) 
    	
 
    	
 
    	
 
    
	
A-1 notes Beginning Principal balance 
    	
 
    	
 
    	
 
    
	
A-2 notes Beginning Principal balance 
    	
 
    	
 
    	
 
    
	
A-3 notes Beginning Principal balance 
    	
 
    	
 
    	
 
    
	
A-4 notes Beginning Principal balance 
    	
 
    	
 
    	
 
    
	
Class B notes Beginning Principal balance 
    	
 
    	
 
    	
 
    

 

	
 
    	
 
    	
Coupon/
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Type
    	
 
    	
Spread
    	
 
    
	
A-1 notes Current Interest Due 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-2 notes Current Interest Due 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-3 notes Current Interest Due 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

C-5

 

	
 
    	
 
    	
Coupon
    	
 
    	
Daycount
    	
 
    
	
A-4 notes Current Interest Due 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class B notes Current Interest Due 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-1 notes Past Due Interest 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-2 notes Past Due Interest 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-3 notes Past Due Interest 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-4 notes Past Due Interest 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class B notes Past Due Interest 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-1 notes Interest Due on Past Due Interest 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-2 notes Interest Due on Past Due Interest 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-3 notes Interest Due on Past Due Interest 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-4 notes Interest Due on Past Due Interest 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class B notes Interest Due on Past Due   Interest 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-1 notes Total Interest Due 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-2 notes Total Interest Due 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-3 notes Total Interest Due 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-4 notes Total Interest Due 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class B notes Total Interest Due 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-1 notes Principal Due 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-2 notes Principal Due 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-3 notes Principal Due 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-4 notes Principal Due 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class B notes Principal Due 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total notes Interest Due 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

3

 

 

 

	
Total notes Principal Due 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Termination Payment Due 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total notes Distributable Amount 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

4

 

 

 

CNH Equipment Trust 2011-B

 

 

C-6

 

$212,000,000 Class A-1 0.38439% Asset Backed Notes due October 12, 2012

 

$298,000,000 Class A-2 0.71% Asset Backed Notes due December 15, 2014

 

$244,000,000 Class A-3 0.91% Asset Backed Notes due August 15, 2016

 

$96,000,000 Class A-4 1.29% Asset Backed Notes due September 15, 2017

 

$25,838,000 Class B 2.25% Asset Backed Notes due March 15, 2018

 

Asset Backed Certificate

 

Actual Payment Date

 

Cash Available for Distribution

Total Collections + Reinvestment Income For The Period

 

Beginning Spread Account Balance

Deposits from Spread Account to Distribution Account

 

Total Cash Available

 

	
 
    	
 
    	
Available
    	
 
    
	
Cash Allocation (Cashflow Waterfall) 
    	
 
    	
Cash
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Servicing Fee Paid 
   (Expressed as a dollar amount per $1,000 of original principal balance of a   Note)
    	
 
    	
 
    	
 
    
	
Servicing Fee Shortfall 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Administration Fee Paid 
   (Expressed as a dollar amount per $1,000 of original principal balance of a   Note) 
    	
 
    	
 
    	
 
    
	
Administration Fee Shortfall 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Remaining Cash Available to Pay Note Interest 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Cash Available to Pay Note Interest 
    	
 
    	
 
    	
 
    
	
Cash Available to Pay Termination Payment 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Class A-1 notes Interest Paid 
   (Expressed as a dollar amount per $1,000 of original principal balance of a   Note)
    	
 
    	
 
    	
 
    
	
Class A-2 notes Interest Paid 
   (Expressed as a dollar amount per $1,000 of original principal balance of a   Note)
    	
 
    	
 
    	
 
    
	
Class A-3 notes Interest Paid 
   (Expressed as a dollar amount per $1,000 of original principal balance of a   Note)
    	
 
    	
 
    	
 
    
	
Class A-4 notes Interest Paid 
   (Expressed as a dollar amount per $1,000 of original principal balance of a   Note)
    	
 
    	
 
    	
 
    
	
Class B notes Interest Paid 
   (Expressed as a dollar amount per $1,000 of original principal balance of a   Note)
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Class A-1 notes Interest Shortfall 
    	
 
    	
 
    	
 
    
	
Class A-2 notes Interest Shortfall 
    	
 
    	
 
    	
 
    
	
Class A-3 notes Interest Shortfall 
    	
 
    	
 
    	
 
    
	
Class A-4 notes Interest Shortfall 
    	
 
    	
 
    	
 
    
	
Class B notes Interest Shortfall 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Class A-1 notes Principal Paid 
   (Expressed as a dollar amount per $1,000 of original principal balance of a   Note)
    	
 
    	
 
    	
 
    
	
Class A-2 notes Principal Paid 
   (Expressed as a dollar amount per $1,000 of original principal balance of a   Note)
    	
 
    	
 
    	
 
    
	
Class A-3 notes Principal Paid 
   (Expressed as a dollar amount per $1,000 of original principal balance of a   Note)
    	
 
    	
 
    	
 
    
	
Class A-4 notes Principal Paid 
   (Expressed as a dollar amount per $1,000 of original principal balance of a   Note)
    	
 
    	
 
    	
 
    
	
Class B notes Principal Paid 
   (Expressed as a dollar amount per $1,000 of original principal balance of a   Note)
    	
 
    	
 
    	
 
    

 

C-7

 

	
Deposits to Spread Account 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Total Principal Balance of Notes (End of Period)
    	
 
    	
 
    	
 
    
	
A-1 notes Ending Principal balance 
    	
 
    	
 
    	
 
    
	
A-2 notes Ending Principal balance 
    	
 
    	
 
    	
 
    
	
A-3 notes Ending Principal balance 
    	
 
    	
 
    	
 
    
	
A-4 notes Ending Principal balance 
    	
 
    	
 
    	
 
    
	
Class B notes Ending Principal balance 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Release to Seller as Excess 
    	
 
    	
 
    	
 
    

 

 

5

 

 

 

CNH Equipment Trust 2011-B

 

$212,000,000 Class A-1 0.38439% Asset Backed Notes due October 12, 2012

 

$298,000,000 Class A-2 0.71% Asset Backed Notes due December 15, 2014

 

$244,000,000 Class A-3 0.91% Asset Backed Notes due August 15, 2016

 

$96,000,000 Class A-4 1.29% Asset Backed Notes due September 15, 2017

 

$25,838,000 Class B 2.25% Asset Backed Notes due March 15, 2018

 

Asset Backed Certificate

 

Actual Payment Date

 

	
Summary and Factors 
    	
 
    	
Amount
    	
 
    	
Factor
    	
 
    	
Per/$1000
    	
 
    
	
Total Principal Balance of Notes (Beginning of   Period) 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-1 notes Beginning Principal balance 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-2 notes Beginning Principal balance 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-3 notes Beginning Principal balance 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-4 notes Beginning Principal balance 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class B notes Beginning Principal balance 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

	
 
    	
 
    	
WAL
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total Principal Balance of Notes (End of Period) 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-1 notes Ending Principal balance 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-2 notes Ending Principal balance 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-3 notes Ending Principal balance 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A-4 notes Ending Principal balance 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class B notes Ending Principal balance 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class A-1 notes Interest Paid  
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class A-2 notes Interest Paid  
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class A-3 notes Interest Paid  
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class A-4 notes Interest Paid  
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class B notes Interest Paid  
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

C-8

 

	
Class A-1 notes Interest Shortfall  
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class A-2 notes Interest Shortfall  
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class A-3 notes Interest Shortfall  
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class A-4 notes Interest Shortfall  
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class B notes Interest Shortfall  
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class A-1 notes Principal Paid  
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class A-2 notes Principal Paid  
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class A-3 notes Principal Paid  
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class A-4 notes Principal Paid  
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class B notes Principal Paid  
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Spread Account 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Required Spread Account Deposit (Add Loans) 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Spread Account Test - 3 Month Average Delinquency   Ratio 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Spread Account Test - Cumulative Net Loss Ratio 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Spread Account Test Met 
    	
 
    	
Original
    	
 
    	
[     ], 20[  ]
    	
 
    	
[     ], 20[  ]
    	
 
    	
[     ], 20[  ]
    	
 
    
	
Required Spread Account Target 
    	
 
    	
[     ]%
    	
 
    	
[     ]%
    	
 
    	
[     ]%
    	
 
    	
[     ]%
    	
 
    
	
Required Spread Account 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Beginning Spread Account Balance 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Spread Account Withdrawals to Distribution Account   
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Spread Account Deposits from Excess Cash 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Spread Account Released to Seller 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ending Spread Account Balance 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Original
    	
 
    
	
Purchases 
    	
 
    	
Units
    	
 
    	
Cut-Off Date
    	
 
    	
Closing Date
    	
 
    	
Pool Balance
    	
 
    
	
Purchase 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total  
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total Release to Seller 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

“The Administrator hereby directs the Indenture Trustee to pay on the Payment Date set forth above from the Certificate Distribution Account to the Certificateholders, on a pro rata basis, zero payment.”

 

 

6

 

 

 

	
Spread Account Triggers
    
	
Average Delinquency Ratio Test*
    
	
 
    
	
Payment   Date
    
	
[    ]-[    ]
    
	
[    ]-[    ]
    
	
[    ]-[    ]
    
	
 
    
	
Second   Prior Month Delinquency Ratio
    
	
Prior   Month Delinquency Ratio
    
	
Current   Month Delinquency Ratio
    

 

3 Month Average Delinquency Ratio

 

	
Test 
    	
 
    	
Variance
    	
 
    	
Trigger
    	
 
    
	
Current Distribution Date 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

C-9

 

	
(1) Is current distribution month   [      ], 20[  ] or   [      ], 20[  ], or   [      ], 20[  ]? 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(2) Is the 3 Month Average Delinquency Ratio   < Specified Percentage for specified month? 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
If both (1) and (2) are “YES” then see   Cumulative Net Loss Ratio 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cumulative Net Loss Ratio Test**   
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Payment Date 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
[      ]-[    ]   
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
[      ]-[    ]   
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
[      ]-[    ]   
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Cumulative Net Loss Ratio

 

	
Test 
    	
 
    	
Variance
    	
 
    	
Trigger
    	
 
    
	
(1) Is current distribution month   [        ], 20[  ] or   [        ], 20[  ], or   [        ], 20[  ]? 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(2) Is the Cumulative Net Loss Ratio <   Specified Percentage for specified month? 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
If both (1) and (2) are “YES” then see   next test below 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

If the 3 Month Average Delinquency and Cumulative Net Loss Ratio tests are met, then spread account reduces to [    ]% at [        ] 20[  ] and/or [    ]% at [        ] 20[  ] and/or [    ]% at [        ] 20[  ]

 

Were the 3 Month Average Delinquency and Cumulative Net Loss Ratio tests met on such Payment Date?

 

Specified Spread Account Balances on such Payment Date

 

DEFINITIONS:

 

Average Delinquency Ratio Test*

On any payment date will be the average of the Delinquency Ratios for the preceding three calendar months.

The Delinquency Ratio for any calendar month means the ratio, expressed as a percentage, of (a) the sum, for all of the receivables, of all scheduled payments that are 60 days or more past due (other than Purchased Receivables and liquidated receivables) as of the end of such month, determined in accordance with the servicer’s then-current practices, to (b) the Pool Balance as of the last day of such month.

 

Cumulative Net Loss Ratio Test**

The Cumulative Net Loss Ratio on any payment date will be the ratio, expressed as a percentage, of (a) the aggregate Realized Losses on the receivables since the Cutoff Date through the last day of the related calendar month, to (b) the Pool Balance as of the Cutoff Date.

 

 

7

 

 

 

POOL STATISTICS

 

Collateral Composition

 

	
Number   of Loans at Beginning of Period
    
	
Number   of Loans at End of Period
    
	
 
    
	
Weighted   Average Coupon on Receivables
    
	
Weighted   Average Original Term on Receivables
    
	
Weighted   Average Remaining Term on Receivables
    
	
 
    
	
Pool   Factor
    
	
A-1   Note Pool Factor
    

 

C-10

 

	
A-2   Note Pool Factor
    
	
A-3   Note Pool Factor
    
	
A-4   Note Pool Factor
    
	
Class B   Note Pool Factor
    
	
Prepayment   Amount - Monthly
    
	
Prepayment   Amount - Life-to-Date
    
	
 
    

 

Collateral Performance

 

	
Contractual Delinquency: (Excluding Liquidated and Purchased Contracts) 
    	
 
    	
Count
    	
 
    	
%
    	
 
    	
Amount
    	
 
    	
%
    	
 
    
	
< 31 Days delinquent 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
31-60 Days delinquent 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
61-90 Days delinquent 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
91-120 Days delinquent 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
121-150 Days delinquent 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
151-180 Days delinquent 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
181 + Days delinquent 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TOTAL (Delinquency data is for   total contract balance past due) 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Scheduled Amounts 30 - 59 days past due 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Scheduled Amounts 60 days or more past due 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

	
Losses on Liquidated Receivables 
    	
 
    	
Month $
    	
 
    	
Month #
    	
 
    	
LTD $
    	
 
    	
LTD #
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Gross Losses (1)  
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Recoveries (2)  
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Net Losses (Gross Losses less Recoveries) 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Net Loss as % of the Average Portfolio Balance 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Net Loss as a % of the Initial Deal Size 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Average Net Loss on all assets that have   experienced a net loss 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Realized Losses 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Net Losses on Liquidated Receivables 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Write Down Amount on 180 Day Receivables  
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Monthly Realized Losses (Total) 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cumulative Net Losses on Liquidated Receivables 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cumulative Write Down Amount on 180 Day   Receivables 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cumulative Realized Losses (Total) 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Repossession Inventory and   180-Day Receivables 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Repossessed Equipment not Sold or Reassigned   (Beginning) 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Repossessed Equipment not Sold or Reassigned (End)   
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Balance of 180 Day Receivables (Beg of month) 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Balance of 180 Day Receivables (End of month) 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

(1) The realizable estimated loss at the time of repossession or full charge-off if written off without a repossession.

(2) Recovery of any estimated loss amount after the sale of repossessed equipment or from the defaulted obligor.

(3) Sum of the monthly loss number of accounts will not equal the life-to-date number of accounts due to loss activity on the same account in multiple months. Duplicate accounts in multiple months have been removed.

 

STATEMENTS TO NOTEHOLDERS

 

C-11

 

1                  Has there been a material change in practices with respect to charge offs, collection and management of delinquent Receivables, and the effect of any grace period, re-aging, re-structuring, partial payments or other practices on delinquency and loss experience?

 

2                  Have there been any material modifications, extensions or waivers to Receivables terms, fees, penalties or payments during the Collection Period?

 

3                  Have there been any material breaches of representations, warranties or covenants contained in the Receivables?

 

4                  Has there been an issuance of notes or other securities backed by the Receivables?

 

5                  Has there been a material change in the underwriting, origination or acquisition of Receivables?

 

Interest and Principal Payments Pursuant to Section 5.6(d) and (e)(ii) of the Sale and Servicing Agreement

 

	
Distribution Amount
    	
 
    	
Class A-1 Notes
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
1. Interest Due on each of the following Payment   Dates
   (assuming no principal reduction since the prior Payment Date)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
October 17,   2011
    	
 
    	
[  ]
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
November 15,   2011
    	
 
    	
[  ]
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
December 15,   2011
    	
 
    	
[  ]
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
January 16,   2012
    	
 
    	
[  ]
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
February 15,   2012
    	
 
    	
[  ]
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
March 15,   2012
    	
 
    	
[  ]
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
April 16,   2012
    	
 
    	
[  ]
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
May 15, 2012
    	
 
    	
[  ]
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
June 15, 2012
    	
 
    	
[  ]
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
July 16, 2012
    	
 
    	
[  ]
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
August 15,   2012
    	
 
    	
[  ]
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
September 17,   2012
    	
 
    	
[  ]
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
October 12,   2012
    	
 
    	
[  ]
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
2. Total Outstanding Principal Payment Due at Final Scheduled Maturity   Date
    	
 
    	
[  ]
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
3. Final Scheduled Maturity Date
    	
 
    	
October 12,   2012
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

	
Distribution Amount
    	
 
    	
Class A-2 Notes
    	
 
    	
Class A-3 Notes
    	
 
    	
Class A-4 Notes
    	
 
    
	
1. Interest Due on each following Payment Date 
   (assuming no principal reduction since the prior Payment Date)
    	
 
    	
[  ]
    	
 
    	
[  ]
    	
 
    	
[  ]
    	
 
    
	
2. Total Outstanding Principal Payment Due at   Final Scheduled Maturity Date
    	
 
    	
[  ]
    	
 
    	
[  ]
    	
 
    	
[  ]
    	
 
    
	
3. Final Scheduled Maturity Date
    	
 
    	
December 15, 2014
    	
 
    	
August 15, 2016
    	
 
    	
September 15, 2017
    	
 
    

 

	
Distribution Amount
    	
 
    	
Class B Notes
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
1. Interest Due on each following Payment Date (assuming   no principal reduction since the prior Payment Date)
    	
 
    	
[  ]
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
2. Total Outstanding Principal Payment Due at   Final Scheduled Maturity Date
    	
 
    	
[  ]
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
3. Final Scheduled Maturity Date
    	
 
    	
March 15, 2018
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

8

 

 

 

 

 

 

C-12

 

EXHIBIT D

to Sale and Servicing Agreement

 

FORM OF ASSIGNMENT

 

For value received, in accordance with and subject to the Sale and Servicing Agreement dated as of September 1, 2011 (the “Sale and Servicing Agreement”) among the undersigned, New Holland Credit Company, LLC (“NH Credit”) and CNH Equipment Trust 2011-B (the “Issuing Entity”), the undersigned does hereby sell, assign, transfer set over and otherwise convey unto the Issuing Entity, without recourse, all of its right, title and interest in, to and under:  (a) the Receivables, which are listed on Schedule A hereto, including all documents constituting chattel paper included therewith, and all obligations of the Obligors thereunder, including all monies paid thereunder on or after the Cutoff Date, (b) the security interests in the Financed Equipment granted by Obligors pursuant to the Receivables and any other interest of the undersigned in such Financed Equipment, (c) any proceeds with respect to the Receivables from claims on insurance policies covering Financed Equipment or Obligors (to the extent not used to purchase Substitute Equipment), (d) the Purchase Agreement, including the right of the undersigned to cause CNH Capital America LLC (“CNHCA”) to repurchase Receivables from the undersigned under the circumstances described therein, (e) any proceeds from recourse to Dealers with respect to the Receivables, (f) any Financed Equipment that shall have secured a Receivable and that shall have been acquired by or on behalf of the Trust, (g) all funds on deposit from time to time in the Trust Accounts, including the Spread Account Deposit, and in all investments and proceeds thereof (including all income thereon), and (h) the proceeds of any and all of the foregoing. The foregoing sale does not constitute and is not intended to result in any assumption by the Issuing Entity of any obligation of the undersigned to the Obligors, insurers or any other person in connection with the Receivables, Receivables Files, any insurance policies or any agreement or instrument relating to any of them.

 

This Assignment is made pursuant to and upon the representations, warranties and agreements on the part of the undersigned contained in the Sale and Servicing Agreement and is to be governed in all respects by the Sale and Servicing Agreement. Capitalized terms used herein and not otherwise defined shall have the meanings assigned to them in the Sale and Servicing Agreement.

 

D-1

 

IN WITNESS WHEREOF, the undersigned has caused this Assignment to be duly executed as of [          ], 2011.

 

	
 
    	
CNH   CAPITAL RECEIVABLES LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

D-2

 

SCHEDULE A

to Assignment

 

SCHEDULE OF RECEIVABLES

 

ATTACHED HERETO.

 

D-3

 

EXHIBIT E

to Sale and Servicing Agreement

 

[RESERVED]

 

E-1

 

EXHIBIT F

to Sale and Servicing Agreement

 

[RESERVED]

 

F-1

 

EXHIBIT G

to Sale and Servicing Agreement

 

[RESERVED]

 

G-1

 

EXHIBIT H

to Sale and Servicing Agreement

 

MINIMUM SERVICING CRITERIA TO BE ADDRESSED IN
 ASSESSMENT OF COMPLIANCE STATEMENT

 

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

 

	
Reg AB   Reference
    	
 
    	
Servicing Criteria
    	
 
    	
Applicable Servicing Criteria
    
	
 
    	
 
    	
General   Servicing Considerations
    	
 
    	
 
    
	
1122(d)(1)(i)
    	
 
    	
Policies   and procedures are instituted to monitor any performance or other triggers   and events of default in accordance with the transaction agreements.
    	
 
    	
N/A
    
	
1122(d)(1)(ii)
    	
 
    	
If   any material servicing activities are outsourced to third parties, policies   and procedures are instituted to monitor the third party’s performance and   compliance with such servicing activities.
    	
 
    	
N/A
    
	
1122(d)(1)(iii)
    	
 
    	
Any   requirements in the transaction agreements to maintain a back-up servicer for   the Pool Assets are maintained.
    	
 
    	
N/A
    
	
1122(d)(1)(iv)
    	
 
    	
A   fidelity bond and errors and omissions policy is in effect on the party   participating in the servicing function throughout the reporting period in   the amount of coverage required by and otherwise in accordance with the terms   of the transaction agreements.
    	
 
    	
N/A
    
	
 
    	
 
    	
Cash   Collection and Administration
    	
 
    	
 
    
	
1122(d)(2)(i)
    	
 
    	
Payments   on pool assets are deposited into the appropriate custodial bank accounts and   related bank clearing accounts no more than two business days following   receipt, or such other number of days specified in the transaction   agreements.
    	
 
    	
X
    
	
1122(d)(2)(ii)
    	
 
    	
Disbursements   made via wire transfer on behalf of an obligor or to an investor are made   only by authorized personnel.
    	
 
    	
X
    
	
1122(d)(2)(iii)
    	
 
    	
Advances   of funds or guarantees regarding collections, cash flows or distributions,   and any interest or other fees charged for such advances, are made, reviewed   and approved as specified in the transaction agreements.
    	
 
    	
N/A
    
	
1122(d)(2)(iv)
    	
 
    	
The   related accounts for the transaction, such as cash reserve accounts or   accounts established as a form of over collateralization, are separately   maintained (e.g., with respect to commingling of cash) as set forth in the   transaction agreements.
    	
 
    	
X
    
	
1122(d)(2)(v)
    	
 
    	
Each   custodial account is maintained at a federally insured depository institution   as set forth in the transaction agreements. For purposes of this criterion,   “federally insured depository institution” with respect to a foreign   financial institution means a foreign financial institution that meets the   requirements of Rule 13k-1(b)(1) of the Securities Exchange Act.
    	
 
    	
X
    
	
1122(d)(2)(vi)
    	
 
    	
Unissued   checks are safeguarded so as to prevent unauthorized access.
    	
 
    	
N/A
    
	
1122(d)(2)(vii)
    	
 
    	
Reconciliations   are prepared on a monthly basis for all asset-backed securities related bank   accounts, including custodial accounts and related bank clearing accounts.   These reconciliations are (A) 
    	
 
    	
N/A
    

 

H-1

 

	
Reg AB   Reference
    	
 
    	
Servicing Criteria
    	
 
    	
Applicable Servicing Criteria
    
	
 
    	
 
    	
mathematically   accurate; (B) prepared within 30 calendar days after the bank statement   cutoff date, or such other number of days specified in the transaction   agreements; (C) reviewed and approved by someone other than the person who   prepared the reconciliation; and (D) contain explanations for reconciling   items. These reconciling items are resolved within 90 calendar days of their   original identification, or such other number of days specified in the   transaction agreements.
    	
 
    	
 
    
	
 
    	
 
    	
Investor   Remittances and Reporting
    	
 
    	
 
    
	
1122(d)(3)(i)
    	
 
    	
Reports   to investors, including those to be filed with the Commission, are maintained   in accordance with the transaction agreements and applicable Commission   requirements. Specifically, such reports (A) are prepared in accordance with   timeframes and other terms set forth in the transaction agreements; (B) provide   information calculated in accordance with the terms specified in the   transaction agreements; (C) are filed with the Commission as required by its   rules and regulations; and (D) agree with investors’ or the trustee’s records   as to the total unpaid principal balance and number of Pool Assets serviced   by the Servicer.
    	
 
    	
N/A
    
	
1122(d)(3)(ii)
    	
 
    	
Amounts   due to investors are allocated and remitted in accordance with timeframes,   distribution priority and other terms set forth in the transaction   agreements.
    	
 
    	
X (solely with respect to remittances)
    
	
1122(d)(3)(iii)
    	
 
    	
Disbursements   made to an investor are posted within two business days to the Servicer’s   investor records, or such other number of days specified in the transaction   agreements.
    	
 
    	
X
    
	
1122(d)(3)(iv)
    	
 
    	
Amounts   remitted to investors per the investor reports agree with cancelled checks,   or other form of payment, or custodial bank statements.
    	
 
    	
X
    
	
 
    	
 
    	
Pool   Asset Administration
    	
 
    	
 
    
	
1122(d)(4)(i)
    	
 
    	
Collateral   or security on pool assets is maintained as required by the transaction   agreements or related pool asset documents.
    	
 
    	
N/A
    
	
1122(d)(4)(ii)
    	
 
    	
Pool   assets and related documents are safeguarded as required by the transaction   agreements.
    	
 
    	
N/A
    
	
1122(d)(4)(iii)
    	
 
    	
Any   additions, removals or substitutions to the asset pool are made, reviewed and   approved in accordance with any conditions or requirements in the transaction   agreements.
    	
 
    	
N/A
    
	
1122(d)(4)(iv)
    	
 
    	
Payments   on pool assets, including any payoffs, made in accordance with the related   pool asset documents are posted to the Servicer’s obligor records maintained   no more than two business days after receipt, or such other number of days   specified in the transaction agreements, and allocated to principal, interest   or other items (e.g., escrow) in accordance with the related pool asset   documents.
    	
 
    	
N/A
    
	
1122(d)(4)(v)
    	
 
    	
The   Servicer’s records regarding the pool assets agree with the Servicer’s   records with respect to an obligor’s unpaid principal balance.
    	
 
    	
N/A
    
	
1122(d)(4)(vi)
    	
 
    	
Changes   with respect to the terms or status of an obligor’s pool assets (e.g., loan   modifications or re-agings) are made, reviewed and approved by authorized   personnel in accordance with the 
    	
 
    	
N/A
    

 

H-2

 

	
Reg AB   Reference
    	
 
    	
Servicing Criteria
    	
 
    	
Applicable Servicing Criteria
    
	
 
    	
 
    	
transaction   agreements and related pool asset documents.
    	
 
    	
 
    
	
1122(d)(4)(vii)
    	
 
    	
Loss   mitigation or recovery actions (e.g., forbearance plans, modifications and   deeds in lieu of foreclosure, foreclosures and repossessions, as applicable)   are initiated, conducted and concluded in accordance with the timeframes or   other requirements established by the transaction agreements.
    	
 
    	
N/A
    
	
1122(d)(4)(viii)
    	
 
    	
Records   documenting collection efforts are maintained during the period a pool asset   is delinquent in accordance with the transaction agreements. Such records are   maintained on at least a monthly basis, or such other period specified in the   transaction agreements, and describe the entity’s activities in monitoring   delinquent pool assets including, for example, phone calls, letters and   payment rescheduling plans in cases where delinquency is deemed temporary   (e.g., illness or unemployment).
    	
 
    	
N/A
    
	
1122(d)(4)(ix)
    	
 
    	
Adjustments   to interest rates or rates of return for pool assets with variable rates are   computed based on the related pool asset documents.
    	
 
    	
N/A
    
	
1122(d)(4)(x)
    	
 
    	
Regarding   any funds held in trust for an obligor (such as escrow accounts): (A) such   funds are analyzed, in accordance with the obligor’s pool asset documents, on   at least an annual basis, or such other period specified in the transaction   agreements; (B) interest on such funds is paid, or credited, to obligors in   accordance with applicable pool asset documents and state laws; and (C) such   funds are returned to the obligor within 30 calendar days of full repayment   of the related pool assets, or such other number of days specified in the   transaction agreements.
    	
 
    	
N/A
    
	
1122(d)(4)(xi)
    	
 
    	
Payments   made on behalf of an obligor (such as tax or insurance payments) are made on   or before the related penalty or expiration dates, as indicated on the   appropriate bills or notices for such payments, provided that such support   has been received by the servicer at least 30 calendar days prior to these   dates, or such other number of days specified in the transaction agreements.
    	
 
    	
N/A
    
	
1122(d)(4)(xii)
    	
 
    	
Any   late payment penalties in connection with any payment to be made on behalf of   an obligor are paid from the Servicer’s funds and not charged to the obligor,   unless the late payment was due to the obligor’s error or omission.
    	
 
    	
N/A
    
	
1122(d)(4)(xiii)
    	
 
    	
Disbursements   made on behalf of an obligor are posted within two business days to the   obligor’s records maintained by the servicer, or such other number of days   specified in the transaction agreements.
    	
 
    	
N/A
    
	
1122(d)(4)(xiv)
    	
 
    	
Delinquencies,   charge-offs and uncollectible accounts are recognized and recorded in   accordance with the transaction agreements.
    	
 
    	
N/A
    
	
1122(d)(4)(xv)
    	
 
    	
Any   external enhancement or other support, identified in Item 1114(a)(1) through   (3) or Item 1115 of Regulation AB, is maintained as set forth in the   transaction agreements.
    	
 
    	
N/A
    

 

H-3

 

EXHIBIT I

to Sale and Servicing Agreement

 

FORM OF INDENTURE TRUSTEE’S ANNUAL CERTIFICATION

 

Re:                             CNH Equipment Trust 2011-B

 

Deutsche Bank Trust Company Americas, not in its individual capacity but solely as indenture trustee (the “Indenture Trustee”), certifies to CNH Capital Receivables LLC (the “Seller”), and its officers, with the knowledge and intent that they will rely upon this certification, that:

 

(1)                                  It has reviewed the report on assessment of the Indenture Trustee’s compliance provided in accordance with Rules 13a-18 and 15d-18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Item 1122 of Regulation AB (the “Servicing Assessment”), and the registered public accounting firm’s attestation report provided in accordance with Rules 13a-18 and 15d-18 under the Exchange Act and Section 1122(b) of Regulation AB (the “Attestation Report”) that were delivered by the Indenture Trustee to the Seller pursuant to the Sale and Servicing Agreement (the “Agreement”), dated as of September 1, 2011, by and between New Holland Credit Company, LLC, the Seller and CNH Equipment Trust 2011-B (collectively, the “Indenture Trustee Information”);

 

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

 

(3)                                  To the best of its knowledge, all of the Indenture Trustee Information required to be provided by the Indenture Trustee under the Agreement has been provided to the Seller.

 

 

	
DEUTSCHE   BANK TRUST COMPANY AMERICAS,
    	
 
    
	
not   in its individual capacity but solely as Indenture Trustee
    	
 
    
	
 
    	
 
    
	
Date:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

I-1

 

EXHIBIT J

to Sale and Servicing Agreement

 

CERTIFICATION OF DEUTSCHE BANK TRUST COMPANY AMERICAS

 

September 21, 2011

 

CNH Capital Receivables LLC
 6900 Veterans Boulevard

Burr Ridge, Illinois 60527

 

CNH Capital America LLC
 6900 Veterans Boulevard

Burr Ridge, Illinois 60527

 

CNH Equipment Trust 2011-B
 6900 Veterans Boulevard

Burr Ridge, Illinois 60527

 

RBS Securities Inc.,

as representative of the several underwriters,

600 Washington Blvd.

Stamford, Connecticut 06901

 

Barclays Capital Inc.,

as representative of the several underwriters

745 Seventh Avenue

New York, New York 10019

 

Citigroup Global Markets Inc.

388 Greenwich Street

New York, New York 10013

 

Credit Agricole Securities (USA) Inc.

1301 Avenue of the Americas

New York, New York 10019

 

RBC Capital Markets, LLC

3 World Financial Center, 8th Floor
 200 Vesey Street
 New York, New York 10281

 

SG Americas Securities, LLC

1221 Avenue of the Americas

New York, New York  10020

 

J-1

 

Re:  CNH Equipment Trust 2011-B

 

Ladies and Gentlemen:

 

Reference is made to (i) the prospectus supplement (subject to completion, dated September 9, 2011) (the “Initial Preliminary Prospectus Supplement”) as amended and supplemented by the supplement to Initial Preliminary Prospectus Supplement (subject to completion, dated September 14, 2011) (the “Preliminary Prospectus Supplement”) and related base prospectus dated September 9, 2011 (the “Preliminary Base Prospectus” and together with the Preliminary Prospectus Supplement, the “Preliminary Prospectus”) relating to the Class A Notes and Class B Notes offered therein (the “Notes”), and (ii) the final prospectus supplement dated September 14, 2011 (the “Final Prospectus Supplement”) and related base prospectus dated September 9, 2011 (the “Final Base Prospectus” and together with the Final Prospectus Supplement, the “Prospectus”) relating to the Class A Notes and Class B Notes.

 

For purposes of this letter, “DB Trust Information” shall mean (i) the statements contained in the Preliminary Prospectus Supplement and Final Prospectus Supplement under the heading “The Indenture Trustee” (to the extent relating to the Indenture Trustee), attached hereto as Exhibit A, and (ii) the statements contained in the Preliminary Prospectus Supplement and Final Prospectus Supplement under the heading “Legal Proceedings” (to the extent relating to the Indenture Trustee).

 

The undersigned hereby certifies that the DB Trust Information does not, as of the date of the Initial Preliminary Prospectus Supplement (September 9, 2011), the date of the Preliminary Prospectus Supplement (September 14, 2011) or the date of the Final Prospectus Supplement (September 14, 2011), (i) contain an untrue statement of a material fact or (ii) omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading.

 

J-2

 

	
 
    	
Sincerely,
    
	
 
    	
 
    
	
 
    	
DEUTSCHE   BANK TRUST COMPANY AMERICAS, as Indenture Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

J-3

 

EXHIBIT A

 

The indenture trustee under the indenture pursuant to which the notes will be issued is Deutsche Bank Trust Company Americas (“DB Trust”), a New York banking corporation with its office located at 60 Wall Street, NYC 60-2606, New York, New York  10005. DB Trust has acted as indenture trustee on numerous asset-backed securities transactions, including acting as indenture trustee on various equipment receivable and auto loan and auto lease securitization transactions.

 

A-1

 

Schedule P

 

PERFECTION REPRESENTATION AND WARRANTIES

 

1.                                       General.  The Sale and Servicing Agreement creates a valid and continuing security interest (as defined in the applicable UCC) in all of CNHCR’s right, title and interest in, to and under (i) the Receivables, (ii) the security interests in the Financed Equipment granted by Obligors pursuant to the Receivables and (iii) the Purchase Agreement in favor of the Issuing Entity, which, (a) is enforceable upon execution of the Sale and Servicing Agreement against creditors of and purchasers from CNHCR, as such enforceability may be limited by applicable Debtor Relief Laws, now or hereafter in effect, and by general principles of equity (whether considered in a suit at law or in equity), and (b) upon filing of the financing statements described in  clause 4  below will be prior to all other Liens (other than Liens permitted pursuant to  clause 5  below).

 

2.                                       Characterization.  The Receivables constitute “tangible chattel paper” within the meaning of UCC Section 9-102.  The rights granted under the agreements described in clause 1 (ii)  and (iii) constitute “general intangibles” within the meaning of UCC Section 9-102.  CNHCR has taken all steps necessary to perfect its security interest in the property securing the Receivables within 10 days of the Closing Date.

 

3.                                       Creation.  Immediately prior to the conveyance of the Receivables pursuant to the Sale and Servicing Agreement, CNCHR owns and has good and marketable title to, or has a valid security interest in, the Receivables free and clear of any Lien, claim or encumbrance of any Person.

 

4.                                       Perfection.  CNHCR has caused or will have caused, within ten days of the Closing Date, 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 granted to the Issuing Entity under the Sale and Servicing Agreement in the Receivables.  With respect to the Receivables that constitute tangible chattel paper, the Servicer or a Subservicer, as custodian, received possession of such original tangible chattel paper and the Issuing Entity has received a written acknowledgment (which is contained in the Sale and Servicing Agreement) from such custodian that it is acting solely as agent of the Issuing Entity and the Indenture Trustee.  All financing statements filed under this clause 4 contain a statement that “A purchase of or security interest in any collateral described in this financing statement will violate the rights of the Secured Party”.

 

5.                                       Priority.  Other than the security interests granted to the Issuing Entity pursuant to the Sale and Servicing Agreement and the security interests granted under documents relating to the Liquidity Receivables Purchase Agreement, which have been released, and any other security interest which has been released or terminated, CNHCR has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the Receivables.  CNHCR has not authorized the filing of and is not aware of any financing statements against CNHCR that include a description of collateral covering the Receivables other than any financing statement (i) relating to the security interests granted to the Issuing Entity under the Sale and Servicing Agreement and the security interests granted in connection with the documents relating to the Liquidity 

 

P-1

 

Receivables Purchase Agreement and the Prior Securitization, each of which have been released, (ii) that has been terminated or has released the Receivables from such security interest, or (iii) that has been granted pursuant to the terms of the Basic Documents.  None of the tangible chattel paper that constitutes or evidences the Receivables has any marks or notations indicating that they have pledged, assigned or otherwise conveyed to any Person other than the Indenture Trustee.  CNHCR is not aware of any judgment, ERISA or tax lien filings against it.

 

6.                                       Survival of Perfection Representations.  Notwithstanding any other provision of the Sale and Servicing Agreement or any other Basic Document, the Perfection Representations contained in this Schedule P shall be continuing, and remain in full force and effect (other than with respect to Reacquired Receivables).

 

7.                                       No Waiver.  The parties to the Sale and Servicing Agreement: (i) shall not, without obtaining a confirmation of the then-current rating of the Notes, waive a material breach of any of the representations and warranties in this Schedule P (the “Perfection Representations”); (ii) shall provide the Ratings Agencies with prompt written notice of any material breach of the Perfection Representations, and shall not, without obtaining a confirmation of the then-current rating of the Notes (as determined after any adjustment or withdrawal of the ratings following notice of such breach) waive a material breach of any of the Perfection Representations.

 

8.                                       Servicer to Maintain Perfection and Priority.  The Servicer covenants that, in order to evidence the interests of CNHCR and Issuing Entity under this Agreement, Servicer shall take such action, or execute and deliver such instruments as may be necessary or advisable (including, without limitation, such actions as are requested by Issuing Entity) to maintain and perfect, as a first priority interest, Issuing Entity’s security interest in the Receivables.  Servicer shall, from time to time and within the time limits established by law, prepare and present to Issuing Entity for Issuing Entity to authorize the Servicer to file all financing statements, amendments, continuations, financing statements in lieu of a continuation statement, terminations, partial terminations, releases or partial releases, or any other filings necessary or advisable to continue, maintain and perfect the Issuing Entity’s security interest in the Receivables as a first-priority interest (each a “Filing”).  Issuing Entity shall promptly authorize in writing Servicer to, and Servicer shall, effect such Filing under the Uniform Commercial Code without the signature of CNHCR or Issuing Entity where allowed by applicable law.

 

P-2

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