Document:

exv10w2

 

Exhibit 10.2

 

SALE AGREEMENT

by and between

BANC OF AMERICA SECURITIES AUTO TRUST 2006-G1,

as Issuer

and

BAS SECURITIZATION LLC,

as Seller

Dated as of November 14, 2006

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINITIONS AND USAGE
	 	 	1	 
	SECTION 1.1 Definitions
	 	 	1	 
	SECTION 1.2 Other Interpretive Provisions
	 	 	1	 
	ARTICLE II CONVEYANCE OF TRANSFERRED ASSETS
	 	 	2	 
	SECTION 2.1 Conveyance of Transferred Assets
	 	 	2	 
	SECTION 2.2 Representations and Warranties of the Seller regarding the Receivables
	 	 	2	 
	SECTION 2.3 Repurchase upon Breach
	 	 	3	 
	ARTICLE III THE SELLER
	 	 	3	 
	SECTION 3.1 Representations and Warranties of Seller
	 	 	3	 
	SECTION 3.2 Liability of the Seller; Indemnities
	 	 	5	 
	SECTION 3.3 Merger or Consolidation of, or Assumption of the Obligations of, Seller
	 	 	6	 
	SECTION 3.4 Limitation on Liability of Seller and Others
	 	 	6	 
	SECTION 3.5 Seller May Own Notes and/or Residual Interest
	 	 	7	 
	SECTION 3.6 Sarbanes-Oxley Act Requirements and 1934 Act Filings
	 	 	7	 
	SECTION 3.7 Compliance with Organizational Documents
	 	 	7	 
	SECTION 3.8 Perfection Representations, Warranties and Covenants
	 	 	7	 
	ARTICLE IV MISCELLANEOUS PROVISIONS
	 	 	7	 
	SECTION 4.1 Amendment
	 	 	7	 
	SECTION 4.2 Protection of Title
	 	 	9	 
	SECTION 4.3 Other Liens or Interests
	 	 	9	 
	SECTION 4.4 Transfers Intended as Sale; Security Interest
	 	 	9	 
	SECTION 4.5 Information Requests
	 	 	10	 
	SECTION 4.6 Notices, Etc
	 	 	10	 
	SECTION 4.7 Choice of Law
	 	 	11	 
	SECTION 4.8 Headings
	 	 	11	 
	SECTION 4.9 Counterparts
	 	 	11	 
	SECTION 4.10 Waivers
	 	 	11	 
	SECTION 4.11 Entire Agreement
	 	 	11	 
	SECTION 4.12 Severability of Provisions
	 	 	11	 

 
					
	 	 	 	 	 
	 
	 	 
	 	Sale Agreement (2006-G1)

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TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page	 
	SECTION 4.13 Binding Effect
	 	 	11	 
	SECTION 4.14 Acknowledgment and Agreement
	 	 	11	 
	SECTION 4.15 Cumulative Remedies
	 	 	12	 
	SECTION 4.16 Nonpetition Covenant
	 	 	12	 
	SECTION 4.17 Submission to Jurisdiction; Waiver of Jury Trial
	 	 	12	 
	SECTION 4.18 Limitation of Liability
	 	 	13	 
	SECTION 4.19 Third-Party Beneficiaries
	 	 	13	 
	Schedule I            Notice Addresses
	 	 	 	 
	 
	 	 	 	 
	Exhibit A            Form of Assignment pursuant to Sale Agreement
	 	 	 	 
	Exhibit B            Perfection Representations, Warranties and Covenants
	 	 	 	 
	 
	 	 	 	 
	Appendix A       Definitions
	 	 	 	 

					
	 	 	 	 	 
	 
	 	 
	 	Sale Agreement (2006-G1)

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     SALE AGREEMENT, dated as of November 14, 2006 (as amended, supplemented or otherwise modified
and in effect from time to time, this “Agreement”), by and between BANC OF AMERICA
SECURITIES AUTO TRUST 2006-G1, a Delaware statutory trust (the “Issuer”) and BAS
SECURITIZATION LLC, a Delaware limited liability company, as seller (the “Seller”).

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

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

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

ARTICLE I

DEFINITIONS AND USAGE

     SECTION 1.1 Definitions. Except as otherwise specified herein or as the context may
otherwise require, capitalized terms used but not otherwise defined herein are defined in
Appendix A hereto, which also contains rules as to usage that are applicable herein.

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

					
	 	 	 	 	 
	 
	 	 
	 	Sale Agreement (2006-G1)

 

 

ARTICLE II

CONVEYANCE OF TRANSFERRED ASSETS

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

     SECTION 2.2 Representations and Warranties of the Seller regarding the Receivables.
The Seller makes the following representations and warranties with respect to the Receivables, on
which the Issuer relies in purchasing the Receivables and pledging the same to the Indenture
Trustee. Such representations and warranties speak as of the Closing Date, but shall survive the
sale, transfer and assignment of the Receivables by the Seller to the Issuer pursuant to this
Agreement and the pledge of the Receivables by the Issuer to the Indenture Trustee pursuant to the
Indenture.

     (i) Schedule of Receivables. No selection procedures adverse to the
Noteholders have been used by the Seller in selecting the Receivables from all
receivables owned by the Seller which were acquired from BANA pursuant to the
Purchase Agreement.

     (ii) No Sale or Transfer. No Receivable has been sold, transferred, assigned
or pledged by the Seller to any Person other than the Issuer.

     (iii) Good Title. Immediately prior to the conveyance of the Receivables
pursuant to this Agreement, the Seller had good and marketable title thereto, free
of any Lien; and, upon execution and delivery of this Agreement by the Seller, the
Issuer shall have all of the right, title and interest of the Seller in and to the
Receivables, the unpaid indebtedness evidenced thereby and the collateral security
therefor, free of any Lien.

     (iv) Delinquencies. As of the Cut-Off Date, no Receivable has any payment more
than 30 days past due, that is, the payments due on that Receivable in excess of
$25.00 have been received within 30 days of the scheduled payment date, except that
up to 0.96% and 0.12% of the aggregate Amount Financed may consist of Receivables
between 31 and 60 days past due and 61 to 90 days past due, respectively.

					
	 	 	 	 	 
	 
	 	 
	 	Sale Agreement (2006-G1)

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     SECTION 2.3 Repurchase upon Breach. (a) Upon discovery by any party hereto of a
breach of any of the representations and warranties set forth in Section 2.2 with respect
to any Receivable at the time such representations and warranties were made which materially and
adversely affects the interests of the Issuer or the Noteholders in such Receivable, the party
discovering such breach shall give prompt written notice thereof to the other parties hereto;
provided, that the failure to give such notice shall not affect any obligation of the Seller
hereunder. If the breach materially and adversely affects the interests of the Issuer or the
Noteholders in such Receivable, then the Seller shall either (i) correct or cure such breach or
(ii) purchase such Receivable from the Issuer, in either case on or before the last day of the
second Collection Period following the date the Seller became aware of or was notified of such
breach. Any such breach or failure will not be deemed to have a material and adverse effect if
such breach or failure does not affect the ability of the Issuer to receive and retain timely
payment in full on such Receivable. Any such purchase by the Seller shall be at a price equal to
the Repurchase Price. In consideration for such repurchase, the Seller shall make (or shall cause
to be made) a payment to the Issuer equal to the Repurchase Price by depositing such amount into
the Collection Account on the date of such repurchase. Upon payment of such Repurchase Price by
the Seller, the Issuer shall release and shall execute and deliver such instruments of release,
transfer or assignment, in each case without recourse or representation, as may be reasonably
requested by the Seller to evidence such release, transfer or assignment or more effectively vest
in the Seller or its designee all of the Issuer’s rights in any Receivable and related Transferred
Assets repurchased pursuant to this Section 2.3. It is understood and agreed that the
right to cause the Seller to repurchase (or to enforce the obligations of BANA under the Purchase
Agreement, CARI under the CARI Purchase Agreement or GMAC under the GMAC Sale Agreement to
repurchase) any Receivable as described above shall constitute the sole remedy respecting such
breach available to the Issuer and the Indenture Trustee. Neither the Owner Trustee nor the
Indenture Trustee will have any duty to conduct an affirmative investigation as to the occurrence
of any condition requiring the repurchase of any Receivable pursuant to this Section 2.3.

     (b) In addition to the foregoing repurchase obligations, if the interest of the Issuer in any
Receivable is materially and adversely affected by a breach by CARI of a representation or warranty
relating to such Receivable in the CARI Purchase Agreement, or a breach by GMAC of a representation
or warranty relating to such Receivable in the GMAC Sale Agreement, the Seller shall repurchase
such Receivable from the Issuer but only if CARI or GMAC, as applicable, shall in fact repurchase
such Receivable. The Seller shall promptly remit (or shall cause BANA to remit) into the
Collection Account the purchase price paid by CARI with respect to such Receivable.

ARTICLE III

THE SELLER

     SECTION 3.1 Representations and Warranties of Seller. The Seller makes the following
representations and warranties as of the Closing Date on which the Issuer will be deemed to have
relied in acquiring the Transferred Assets. The representations and warranties speak as of the
execution and delivery of this Agreement and will survive the conveyance of the

					
	 	 	 	 	 
	 
	 	 
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Transferred Assets to the Issuer and the pledge thereof by the Issuer to the Indenture Trustee pursuant to the
Indenture:

     (a) Existence and Power. The Seller is a Delaware limited liability company validly
existing and in good standing under the laws of its state of organization and has, in all material
respects, full power and authority to own its assets and operate its business as presently owned or
operated, and to execute, deliver and perform its obligations under the Transaction Documents to
which it is a party or affect the enforceability or collectibility of the Receivables or any other
part of the Transferred Assets. The Seller has obtained all necessary licenses and approvals in
each jurisdiction where the failure to do so would materially and adversely affect the ability of
the Seller to perform its obligations under the Transaction Documents or affect the enforceability
or collectibility of the Receivables or any other part of the Transferred Assets.

     (b) Authorization and No Contravention. The execution, delivery and performance by
the Seller of the Transaction Documents to which it is a party have been duly authorized by all
necessary action on the part of the Seller and do not contravene or constitute a default under (i)
any applicable law, rule or regulation, (ii) its organizational documents or (iii) any indenture or
agreement or instrument to which the Seller is a party or by which its properties are bound (other
than violations of such laws, rules, regulations, indentures or agreements which do not affect the
legality, validity or enforceability of any of such agreements and which, individually or in the
aggregate, would not materially and adversely affect the transactions contemplated by, or the
Seller’s ability to perform its obligations under, the Transaction Documents).

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

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

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

     (f) No Proceedings. There are no actions, orders, suits or Proceedings pending or, to
the knowledge of the Seller, threatened against the Seller before or by any Governmental Authority
that (i) assert the invalidity or unenforceability of this Agreement or any of the other
Transaction Documents, (ii) seek to prevent the issuance of the Notes or the consummation of

					
	 	 	 	 	 
	 
	 	 
	 	Sale Agreement (2006-G1)

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any of the transactions contemplated by this Agreement or any of the other Transaction Documents, (iii)
seek any determination or ruling that would materially and adversely affect the performance by the
Seller of its obligations under this Agreement or any of the other Transaction Documents or the
collectibility or enforceability of the Receivables or have a material adverse effect on the
Noteholders, or (iv) relate to the Seller that would materially and adversely affect the federal or
Applicable Tax State income, excise, franchise or similar tax attributes of the Notes.

     (g) Trade Name. “BAS Securitization LLC” is the only trade name under which the
Seller is currently operating its business. For the six (6) years (or such shorter period of time
during which the Seller was in existence) preceding the date hereof, the Seller operated its
business under the trade name “BAS Securitization LLC”. “BAS Securitization LLC” is the
name of the Seller indicated on the public record of the Seller’s jurisdiction of organization
which shows the Seller to have been organized.

     (h) Investment Company Act. The Seller is not an “investment company” that is
registered or required to be registered under, or otherwise subject to the restrictions of the
Investment Company Act of 1940, as amended.

     SECTION 3.2 Liability of the Seller; Indemnities. The Seller shall be liable in
accordance herewith only to the extent of the obligations specifically undertaken by the Seller
under this Agreement, and hereby agrees to the following:

     (a) The Seller shall indemnify, defend, and hold harmless the Issuer, the Owner Trustee, the
Indenture Trustee, the Noteholders and the Residual Interestholder from and against any loss,
liability or expense incurred by reason of the Seller’s violation of federal or State securities
laws in connection with the registration or the sale of the Notes.

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

     (c) Indemnification under this Section 3.2 will survive the resignation or removal of
the Owner Trustee or the Indenture Trustee and the termination of this Agreement and will include
reasonable fees and expenses of counsel and expenses of litigation. If the Seller has made any
indemnity payments pursuant to this Section 3.2 and the Person to or on behalf of whom such
payments are made thereafter collects any of such amounts from others, such Person will promptly
repay such amounts to the Seller, without interest.

     (d) The Seller’s obligations under this Section 3.2 are obligations solely of the
Seller and will not constitute a claim against the Seller to the extent that the Seller does not
have funds sufficient to make payment of such obligations. In furtherance of and not in derogation
of the foregoing, the Issuer, by entering into or accepting this Agreement, acknowledges and agrees
that it has no right, title or interest in or to the Other Assets of the Seller. To the extent
that, notwithstanding the agreements and provisions contained in the preceding sentence, the Issuer
either (i) asserts an interest or claim to, or benefit from, Other Assets, or (ii) is deemed to
have any such interest, claim to, or benefit in or from Other Assets, whether by operation of law,
legal process, pursuant to applicable provisions of insolvency laws or otherwise (including by
virtue of

					
	 	 	 	 	 
	 
	 	 
	 	Sale Agreement (2006-G1)

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Section 1111(b) of the Bankruptcy Code or any successor provision having similar effect
under the Bankruptcy Code), then the Issuer further acknowledges and agrees that any such interest,
claim or benefit in or from Other Assets is and will be expressly subordinated to the indefeasible
payment in full, which, under the terms of the relevant documents relating to the securitization or
conveyance of such Other Assets, are entitled to be paid from, entitled to the benefits of, or
otherwise secured by such Other Assets (whether or not any such entitlement or security interest is
legally perfected or otherwise entitled to a priority of distributions or application under
applicable law, including insolvency laws, and whether or not asserted against the Seller),
including the payment of post-petition interest on such other obligations and liabilities. This
subordination agreement will be deemed a subordination agreement within the meaning of Section
510(a) of the Bankruptcy Code. The Issuer further acknowledges and agrees that no adequate remedy
at law exists for a breach of this Section 3.2(d) and the terms of this Section
3.2(d) may be enforced by an action for specific performance. The provisions of this
Section  3.2(d) will be for the third party benefit of those entitled to rely thereon and will
survive the termination of this Agreement.

     SECTION 3.3 Merger or Consolidation of, or Assumption of the Obligations of, Seller.
Any Person (i) into which the Seller may be merged or consolidated, (ii) resulting from any merger,
conversion, or consolidation to which the Seller is a party, (iii) succeeding to the business of
the Seller, or (iv) more than 50% of the voting stock or voting power and 50% or more of the
economic equity of which is owned directly or indirectly by BAC, which Person in any of the
foregoing cases executes an agreement of assumption to perform every obligation of the Seller under
this Agreement, will be the successor to the Seller under this Agreement without the execution or
filing of any document or any further act on the part of any of the parties to this Agreement.
Notwithstanding the foregoing, if the Seller enters into any of the foregoing transactions and is
not the surviving entity, (x) the Seller shall deliver to the Indenture Trustee an Officer’s
Certificate and an Opinion of Counsel each stating that such merger, conversion, consolidation or
succession and such agreement of assumption comply with this Section 3.3 and that all
conditions precedent, if any, provided for in this Agreement relating to such transaction have been
complied with and (y) the Seller will deliver to the Indenture Trustee an Opinion of Counsel either
(A) stating that, in the opinion of such counsel, all financing statements and continuation
statements and amendments thereto have been executed and filed that are necessary fully to preserve
and protect the interest of the Issuer 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 is necessary to preserve and protect such interest. The Seller will provide notice of
any merger, conversion, consolidation, or succession pursuant to this Section 3.3 to the
Rating Agencies. Notwithstanding anything herein to the contrary, the execution of the foregoing
agreement of assumption and compliance with clauses (x) and (y) of this Section
3.3 will be conditions to the consummation of any of the transactions referred to in
clauses (i), (ii) or (iii) of this Section 3.3 in which the Seller
is not the surviving entity.

     SECTION 3.4 Limitation on Liability of Seller and Others. The Seller and any officer
or employee or agent of the Seller may rely in good faith on the advice of counsel or on any
document of any kind, prima facie properly executed and submitted by any Person respecting any
matters arising hereunder. The Seller will not be under any obligation to appear in, prosecute, or
defend any legal action that is not incidental to its obligations under this Agreement, and that in
its opinion may involve it in any expense or liability.

					
	 	 	 	 	 
	 
	 	 
	 	Sale Agreement (2006-G1)

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     SECTION 3.5 Seller May Own Notes and/or Residual Interest. The Seller, and any
Affiliate of the Seller, may in its individual or any other capacity become the owner or pledgee of
Notes and/or the Residual Interest with the same rights as it would have if it were not the Seller
or an Affiliate thereof, except as otherwise expressly provided herein or in the other Transaction
Documents. Except as set forth herein or in the other Transaction Documents, Notes and the
Residual Interest so owned by the Seller or any such Affiliate will have an equal and proportionate
benefit under the provisions of this Agreement and the other Transaction Documents, without
preference, priority, or distinction as among all of the Notes and the Residual Interest. Unless
all Notes are owned by the Issuer, the Seller or any of their respective Affiliates, any Notes
owned by the Issuer, the Seller or any of their respective Affiliates shall be disregarded with
respect to the determination of any request, demand, authorization, direction, notice, consent,
vote or waiver hereunder or under any other Transaction Document.

     SECTION 3.6 Sarbanes-Oxley Act Requirements and 1934 Act Filings. (a) (i) To the
extent any documents are required to be filed with respect to the Issuer or the Notes pursuant to
the Sarbanes-Oxley Act, the Issuer hereby authorizes the Indenture Trustee and the Seller, or
either of them, to prepare, sign and file any such documents or any certifications on behalf of the
Issuer and (ii) to the extent any certification is required to be made with respect to the Issuer
or the Notes pursuant to the Sarbanes-Oxley Act, the Issuer hereby authorizes the Seller certify
any such documents on behalf of the Issuer.

     (b) (i) The Issuer hereby authorizes the Indenture Trustee and the Seller, or either of them,
to prepare, sign and file any and all reports, statements and information respecting the Issuer
and/or the Notes required to be filed pursuant to the Exchange Act and (ii) the Issuer hereby
authorizes the Seller to certify any and all reports, statements and information respecting the
Issuer and/or the Notes required to be filed pursuant to the Exchange Act.

     SECTION 3.7 Compliance with Organizational Documents. The Seller shall comply with
its limited liability company agreement and other organizational documents.

     SECTION 3.8 Perfection Representations, Warranties and Covenants. The Seller hereby
makes the perfection representations, warranties and covenants attached hereto as Exhibit B
to the Issuer and the Issuer shall be deemed to have relied on such representations, warranties and
covenants in acquiring the Transferred Assets.

ARTICLE IV

MISCELLANEOUS PROVISIONS

     SECTION 4.1 Amendment.

     (a) Any term or provision of this Agreement may be amended by the Seller with prior notice to
each Rating Agency but without the consent of the Indenture Trustee, any Noteholder, the Issuer or
the Owner Trustee; provided that such amendment shall not, as evidenced by an Officer’s Certificate
of the Depositor delivered to the Indenture Trustee and the Owner Trustee materially and adversely
affect the interests of the Noteholders, the Indenture Trustee or the

					
	 	 	 	 	 
	 
	 	 
	 	Sale Agreement (2006-G1)

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Owner Trustee; provided,
further, that any amendment entered into pursuant to this Section 4.1(a) shall not
significantly change the permitted activities of the Issuer.

     (b) Any term or provision of this Agreement may be amended by the Seller with prior notice to
each Rating Agency but without the consent of the Indenture Trustee, any Noteholder, the Issuer,
the Owner Trustee or any other Person to add, modify or eliminate any provisions as may be
necessary or advisable in order to enable the Seller or any of its Affiliates to comply with or
obtain more favorable treatment under any law or regulation or any accounting rule or principle;
provided that such amendment shall not, as evidenced by an Officer’s Certificate of the Depositor
delivered to the Indenture Trustee and the Owner Trustee materially and adversely affect the
interests of the Noteholders, the Issuer, the Indenture Trustee or the Owner Trustee; provided,
further, that the Rating Agency Condition with respect to Standard & Poor’s shall have been
satisfied; provided, further, that any amendment entered into pursuant to this Section
4.1(b) shall not significantly change the permitted activities of the Issuer.

     (c) This Agreement (including Appendix A) may also be amended from time to time by the
Seller with prior notice to each Rating Agency and with the consent of the Holders evidencing not
less than a majority of the Note Balance of the Controlling Class for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of this Agreement. It
will not be necessary for the consent of Noteholders to approve the particular form of any proposed
amendment or consent, but it will be sufficient if such consent approves the substance thereof.
The manner of obtaining such consents (and any other consents of Noteholders provided for in this
Agreement) and of evidencing the authorization of the execution thereof by Noteholders will be
subject to such reasonable requirements as the Indenture Trustee may prescribe, including the
establishment of record dates pursuant to the Note Depository Agreement.

     Notwithstanding anything in this Section 4.1 to the contrary, no amendment to this
Agreement may significantly change the permitted activities of the Issuer without the consent of
the majority of all Outstanding Noteholders.

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

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

					
	 	 	 	 	 
	 
	 	 
	 	Sale Agreement (2006-G1)

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     SECTION 4.2 Protection of Title.

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

     (b) The Seller shall not change its name, identity, organizational structure or jurisdiction
of organization in any manner that would make any financing statement or continuation statement
filed by the Seller in accordance with paragraph (a) above “seriously misleading” within
the meaning of Sections 9-506, 9-507 or 9-508 of the UCC, unless it shall have given the Issuer and
the Indenture Trustee at least five days’ prior written notice thereof and, to the extent
necessary, has promptly filed amendments to previously filed financing statements or continuation statements described in paragraph (a) above or filed new
financing statements, as applicable.

     (c) The Seller shall give the Issuer and the Indenture Trustee at least five days’ prior
written notice of any change of location of the Seller for purposes of Section 9-307 of the UCC and
shall have taken all action prior to making such change (or shall have made arrangements to take
such action substantially simultaneously with such change, if it is not possible to take such
action in advance) reasonably necessary or advisable to amend all previously filed financing
statements or continuation statements described in paragraph (a) above or to file new
financing statements, as applicable.

     SECTION 4.3 Other Liens or Interests. Except for the conveyances and grants of
security interests pursuant to this Agreement and the other Transaction Documents, the Seller shall
not sell, pledge, assign or transfer the Receivables or other property transferred to the Issuer to
any other Person, or grant, create, incur, assume or suffer to exist any Lien on any interest
therein, and the Seller shall defend the right, title and interest of the Issuer in, to and under
such Receivables and other property transferred to the Issuer against all claims of third parties
claiming through or under the Seller.

     SECTION 4.4 Transfers Intended as Sale; Security Interest.

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

					
	 	 	 	 	 
	 
	 	 
	 	Sale Agreement (2006-G1)

9

 

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

	 	(i)	 	This Agreement shall be deemed to be a security agreement
within the meaning of Articles 8 and 9 of the New York UCC and the UCC of any
other applicable jurisdiction;
	 
	 	(ii)	 	The conveyance provided for in Section 2.1  shall be
deemed to be a grant by the Seller, and the Seller hereby grants, to the Issuer
of a security interest in all of its right (including the power to convey title
thereto), title and interest, whether now owned or hereafter acquired, in and
to the Receivables and other Transferred Assets, to secure such indebtedness
and the performance of the obligations of the Seller hereunder;
	 
	 	(iii)	 	The possession by the Issuer, or the Master Servicer or the
Receivables Servicer as the Issuer’s agent, of the Receivable Files and any
other property as constitute instruments, money, negotiable documents or
chattel paper shall be deemed to be “possession by the secured party” or
possession by the purchaser or a person designated by such purchaser, for
purposes of perfecting the security interest pursuant to the New York UCC and
the UCC of any other applicable jurisdiction; and
	 
	 	(iv)	 	Notifications to persons holding such property, and
acknowledgments, receipts or confirmations from persons holding such property,
shall be deemed to be notifications to, or acknowledgments, receipts or
confirmations from, bailees or agents (as applicable) of the Issuer for the
purpose of perfecting such security interest under applicable law.

     SECTION 4.5 Information Requests. The parties hereto shall provide any information
reasonably requested by the Master Servicer, the Issuer, the Seller or any of their Affiliates, in
order to comply with or obtain more favorable treatment under any current or future law, rule,
regulation, accounting rule or principle.

     SECTION 4.6 Notices, Etc. All demands, notices and communications hereunder shall be
in writing and shall be delivered or mailed by registered or certified first-class United States
mail, postage prepaid, hand delivery, prepaid courier service, or by facsimile, and addressed in
each case as set forth on Schedule I or at such other address as shall be designated in a
written notice to the other parties hereto. Any notice required or permitted to be mailed to a
Noteholder shall be given by first class mail, postage prepaid, at the address of such Noteholder
as shown in the Note Register. Delivery shall occur only upon receipt or reported tender of such
communication by an officer of the recipient entitled to receive such notices located at the
address of such recipient for notices hereunder; provided, however, that any notice to a Noteholder
mailed within the time prescribed in this Agreement shall be conclusively presumed to have been
duly given, whether or not the Noteholder shall receive such notice.

					
	 	 	 	 	 
	 
	 	 
	 	Sale Agreement (2006-G1)

10

 

     SECTION 4.7 Choice of Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING, SECTIONS 5-1401 AND 5-1402 OF THE NEW
YORK GENERAL OBLIGATIONS LAW BUT EXCLUDING TO THE MAXIMUM EXTENT PERMITTED BY LAW ALL OTHER
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL
BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     SECTION 4.8 Headings. The section headings hereof have been inserted for convenience
of reference only and shall not be construed to affect the meaning, construction or effect of this
Agreement.

     SECTION 4.9 Counterparts. This Agreement may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but all of such
counterparts shall together constitute but one and the same instrument. 

     SECTION 4.10 Waivers. No failure or delay on the part of the Seller, the Issuer or
the Indenture Trustee in exercising any power or right hereunder (to the extent such Person has any
power or right hereunder) shall operate as a waiver thereof, nor shall any single or partial
exercise of any such power or right preclude any other or further exercise thereof or the exercise
of any other power or right. No notice to or demand on any party hereto in any case shall entitle
it to any notice or demand in similar or other circumstances. No waiver or approval by any party
hereto under this Agreement shall, except as may otherwise be stated in such waiver or approval, be
applicable to subsequent transactions. No waiver or approval under this Agreement shall require
any similar or dissimilar waiver or approval thereafter to be granted hereunder.

     SECTION 4.11 Entire Agreement. The Transaction Documents contain a final and complete
integration of all prior expressions by the parties hereto with respect to the subject matter
thereof and shall constitute the entire agreement among the parties hereto with respect to the
subject matter thereof, superseding all prior oral or written understandings. There are no
unwritten agreements among the parties.

     SECTION 4.12 Severability of Provisions. If any one or more of the covenants,
agreements, provisions or terms of this Agreement shall be for any reason whatsoever held invalid,
then such covenants, agreements, provisions or terms shall be deemed severable from the remaining
covenants, agreements, provisions or terms of this Agreement and shall in no way affect the
validity or enforceability of the other provisions of this Agreement.

     SECTION 4.13 Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted assigns. This
Agreement shall create and constitute the continuing obligations of the parties hereto in
accordance with its terms, and shall remain in full force and effect until such time as the parties
hereto shall agree.

     SECTION 4.14 Acknowledgment and Agreement. By execution below, the Seller expressly
acknowledges and consents to the pledge, assignment and grant of a security interest in the
Receivables and the other Transferred Assets by the Issuer to the Indenture Trustee pursuant

					
	 	 	 	 	 
	 
	 	 
	 	Sale Agreement (2006-G1)

11

 

to the Indenture for the benefit of the Noteholders. In addition, the Seller hereby acknowledges and
agrees that for so long as the Notes are outstanding, the Indenture Trustee will have the right to
exercise all powers, privileges and claims of the Issuer under this Agreement.

     SECTION 4.15 Cumulative Remedies. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law.

     SECTION 4.16 Nonpetition Covenant. Each party hereto agrees that, prior to the date
which is one year and one day after payment in full of all obligations of each Bankruptcy Remote
Party in respect of all securities issued by any Bankruptcy Remote Party (i) such party shall not
authorize any Bankruptcy Remote Party to commence a voluntary winding-up or other voluntary case or
other Proceeding seeking liquidation, reorganization or other relief with respect to such
Bankruptcy Remote Party or its debts under any bankruptcy, insolvency or other similar law now or
hereafter in effect in any jurisdiction or seeking the appointment of an administrator, a trustee,
receiver, liquidator, custodian or other similar official with respect to such Bankruptcy Remote
Party or any substantial part of its property or to consent to any such relief or to the
appointment of or taking possession by any such official in an involuntary case or other Proceeding
commenced against such Bankruptcy Remote Party, or to make a general assignment
for the benefit of, its creditors generally, any party hereto or any other creditor of such
Bankruptcy Remote Party, and (ii) none of the parties hereto shall commence or join with any other
Person in commencing any Proceeding against such Bankruptcy Remote Party under any bankruptcy,
reorganization, liquidation or insolvency law or statute now or hereafter in effect in any
jurisdiction; provided, that, notwithstanding the foregoing, a Bankruptcy Remote Party shall not be
prohibited from filing a voluntary bankruptcy petition to the extent such Bankruptcy Remote Party
obtains the necessary vote for filing a voluntary bankruptcy petition as required by the
organizational documents of such Bankruptcy Remote Party. This Section shall survive the
termination of this Agreement.

     SECTION 4.17 Submission to Jurisdiction; Waiver of Jury Trial. Each of the parties
hereto hereby irrevocably and unconditionally:

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

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

     (c) agrees that service of process in any such action or Proceeding may be effected by mailing
a copy thereof by registered or certified mail (or any substantially similar form of mail), postage
prepaid, to such Person at its address determined in accordance with Section 4.6 of this
Agreement;

					
	 	 	 	 	 
	 
	 	 
	 	Sale Agreement (2006-G1)

12

 

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

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

     SECTION 4.18 Limitation of Liability. Notwithstanding anything contained herein to
the contrary, this Agreement has been executed and delivered by Wilmington Trust Company, not in
its individual capacity but solely as Owner Trustee, and in no event shall it have any liability
for the representations, warranties, covenants, agreements or other obligations of the Issuer
hereunder or under the Notes or any of the other Transaction Documents or in any of the
certificates, notices or agreements delivered pursuant thereto, as to all of which recourse shall
be had solely to the assets of the Issuer. Under no circumstances shall the Owner Trustee be
personally liable for the payment of any indebtedness or expense of the Issuer or be liable for the
breach or failure of any obligations, representation, warranty or covenant made or undertaken by
the Issuer under the Transaction Documents. For the purposes of this Agreement, in the performance
of its duties or obligations hereunder, the Owner Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of Articles VI, VII and
VIII of the Trust Agreement.

     SECTION 4.19 Third-Party Beneficiaries. This Agreement shall inure to the benefit of
and be binding upon the parties hereto, the Indenture Trustee, the Noteholders and the Residual
Interestholders and their respective successors and permitted assigns and the Owner Trustee shall
be an express third party beneficiary hereof and may enforce the provisions hereof as if it were a
party hereto. Except as otherwise provided in this Section, no other Person will have any right
hereunder.

[SIGNATURES FOLLOW]

					
	 	 	 	 	 
	 
	 	 
	 	Sale Agreement (2006-G1)

13

 

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

	 	 	 	 	 
	 	BAS SECURITIZATION LLC, as Seller

 	 
	 	By:  	/s/  William A. Glenn
 	 
	 	 	Name:  	William A. Glenn 	 
	 	 	Title:  	President 	 
	 

					
	 	 	 	 	 
	 
	 	 
	 	Sale Agreement (2006-G1)

S-1

 

	 	 	 	 	 
	 	BANC OF AMERICA SECURITIES AUTO TRUST 

2006-G1, as Issuer

 	 
	 	By:  	WILMINGTON TRUST COMPANY,
 	 
	 	 	not in its individual capacity but 	 
	 	 	solely as Owner Trustee 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	             /s/  J. Christopher Murphy
 	 
	 	 	Name:  	J. Christopher Murphy 	 
	 	 	Title:  	Financial Services Officer 	 
	 

					
	 	 	 	 	 
	 
	 	 
	 	Sale Agreement (2006-G1)

S-2

 

SCHEDULE I

NOTICE ADDRESSES

If to the Issuer:

Banc of America Securities Auto Trust 2006-G1

c/o Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, DE 19890-0001

Facsimile: (302) 636-4140

Attention: Corporate Trust Department

with copies to the Seller and the Indenture Trustee

If to the Seller:

BAS Securitization LLC

Hearst Tower

214 North Tryon Street

NC1-027-21-04

Charlotte, NC 28255

Attention: William A. Glenn

If to the Originator or the Receivables Servicer:

GMAC LLC

Administration Office

200 Renaissance Center, 12th Floor

Detroit, Michigan 48265

Attention: Director-Global Securitization

Telephone No.: (313) 665-6274

Facsimile: (313) 665-6351

If to CARI:

Capital Auto Receivables, LLC

Corporation Trust Center

1209 Orange Street

Wilmington, DE 19801

Facsimile: (313) 665-6351

					
	 	 	 	 	 
	 
	 	 
	 	Schedule I to the
	 
	 	 	 	Sale Agreement

I-1

 

If to the Master Servicer:

Bank of America, National Association

Principal Finance Group

9 West 57th Street

New York, NY 10019

If to the Indenture Trustee:

U.S. Bank National Association

U.S. Bank Corporate Trust Services

209 S. LaSalle Street

Suite 300

Chicago, IL 60604

Facsimile: (312) 325-8905

Attention: BASAT 2006-G1

If to the Owner Trustee:

Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890-0001

Facsimile: (302) 636-4140

Attention: Corporate Trust Department

If to Moody’s:

Moody’s Investors Service, Inc.

99 Church Street, 4th Floor

New York, New York 10007

Facsimile: (212) 298-7139)

Attention: ABS Monitoring Group

If to S&P:

Standard & Poor’s Ratings Services

55 Water Street

New York, New York 10041

Facsimile: (212) 438-2664

Attention: Asset Backed Surveillance Group

					
	 	 	 	 	 
	 
	 	 
	 	Schedule I to the
	 
	 	 	 	Sale Agreement

I-2

 

EXHIBIT A

ASSIGNMENT PURSUANT TO SALE AGREEMENT

November 14, 2006

     For value received, in accordance with the Sale Agreement (the “Agreement”), dated as
of November 14, 2006, by and between Banc of America Securities Auto Trust 2006-G1, a Delaware
statutory trust (the “Issuer”) and BAS Securitization LLC, a Delaware limited liability
company (the “Seller”), on the terms and subject to the conditions set forth in the
Agreement, the Seller does hereby irrevocably sell, transfer, assign, and otherwise convey to the
Issuer without recourse (subject to the obligations in the Agreement) on the date hereof, all
right, title and interest of the Seller, whether now owned or hereafter acquired, in, to and under
the following property, which sale shall be effective as of the Cut-Off Date:

     (i) all right, title and interest of the Seller in, to and under the Receivables listed
on the Schedule of Receivables and all monies received thereon, on and after the Cut-Off
Date, exclusive of any amounts allocable to the premium for physical damage insurance
force-placed by GMAC covering any related Financed Vehicle;

     (ii) the interest of the Seller in the security interests in the Financed Vehicles
granted by Obligors pursuant to the Receivables and, to the extent permitted by law, any
accessions thereto;

     (iii) the interest of the Seller in any proceeds from claims on any physical damage,
credit life, credit disability, warranties, debt cancellation agreements or other insurance
policies covering Financed Vehicles or Obligors;

     (iv) the interest of the Seller in any proceeds from recourse against Dealers on the
Receivables;

     (v) all right, title and interest of the Seller in, to and under the CARI Purchase
Agreement, the GMAC Sale Agreement and the Purchase Agreement, including the right of the
Seller to cause GMAC, CARI or BANA, as applicable, to repurchase Receivables under certain
circumstances, and all right, title and interest of BANA in its capacity as purchaser under
the Receivables Servicing Agreement;

     (vi) all of the Seller’s rights to the Receivable Files; and

     (vii) the interest of the Seller in any proceeds of the property described in
clauses (i) and (ii) above.

     The foregoing sale does not constitute and is not intended to result in an assumption by the
Issuer of any obligation of the Seller, BANA, CARI or any Originator to the Obligors, insurers or
any other Person in connection with the Receivables or the other assets and properties conveyed
hereunder or any agreement, document or instrument related thereto.

					
	 	 	 	 	 
	 
	 	 
	 	Exhibit A to the
	 
	 	 	 	Sale Agreement

A-1

 

     This assignment is made pursuant to and upon the representations, warranties and agreements on
the part of the undersigned contained in the Agreement and is governed by the Agreement.

     Capitalized terms used herein and not otherwise defined shall have the meaning assigned to
them in the Agreement.

					
	 	 	 	 	 
	 
	 	 
	 	Exhibit A to the
	 
	 	 	 	Sale Agreement

A-2

 

     IN WITNESS HEREOF, the undersigned has caused this assignment to be duly executed as of the
date first above written.

	 	 	 	 	 
	 	BAS SECURITIZATION LLC

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

					
	 	 	 	 	 
	 
	 	 
	 	Exhibit A to the
	 
	 	 	 	Sale Agreement

A-3

 

EXHIBIT B

PERFECTION REPRESENTATIONS, WARRANTIES AND COVENANTS

In addition to the representations, warranties and covenants contained in the Agreement, the Seller
hereby represents, warrants, and covenants to the Issuer and the Indenture Trustee as follows on
the Closing Date:

General

1. This Agreement creates a valid and continuing security interest (as defined in the applicable
UCC) in the Receivables and the other Transferred Assets in favor of the Issuer, which security
interest is prior to all other Liens, and is enforceable as such as against creditors of and
purchasers from the Seller.

2. The Receivables constitute “chattel paper” (including “electronic chattel paper” or “tangible
chattel paper”), “accounts,” “instruments” or “general intangibles,” within the meaning of the UCC.

3. Each Receivable is secured by a first priority validly perfected security interest in the
related Financed Vehicle in favor of the Originator, as secured party, or all necessary actions
with respect to such Receivable have been taken or will be taken to perfect a first priority
security interest in the related Financed Vehicle in favor of the Originator, as secured party.

Creation

4. Immediately prior to the sale, transfer, assignment and conveyance of a Receivable by the Seller
to the Issuer, the Seller owned and had good and marketable title to such Receivable free and clear
of any Lien and immediately after the sale, transfer, assignment and conveyance of such Receivable
to the Issuer, the Issuer will have good and marketable title to such Receivable free and clear of
any Lien.

5. The Originator has received all consents and approvals to the sale of the Receivables hereunder
to the Issuer required by the terms of the Receivables that constitute instruments.

Perfection

6. The Seller has caused or will have caused, within ten days after the effective date of this
Agreement, the filing of all appropriate financing statements in the proper filing office in the
appropriate jurisdictions under applicable law in order to perfect the sale of the Receivables from
the Seller to Issuer, and the security interest in the Receivables granted to the Issuer hereunder;
and the Master Servicer or the Receivables Servicer, in its capacity as custodian, has in its
possession the original copies of such instruments or tangible chattel paper that constitute or
evidence the Receivables, and all financing statements referred to in this paragraph contain a
statement that: “A purchase of or security interest in any collateral described in this financing
statement will violate the rights of the Secured Party/Purchaser”.

7. With respect to Receivables that constitute instruments or tangible chattel paper, either:

					
	 	 	 	 	 
	 
	 	 
	 	Exhibit B to the
	 
	 	 	 	Sale Agreement

B-1

 

(i) All original executed copies of each such instrument or tangible chattel paper have been
delivered to the Indenture Trustee; or

(ii) Such instruments or tangible chattel paper are in the possession of the Master Servicer or
the Receivables Servicer and the Indenture Trustee has received a written acknowledgment from the
Master Servicer or the Receivables Servicer, as applicable, that such Person, in its capacity as
custodian, is holding such instruments or tangible chattel paper solely on behalf and for the
benefit of the Indenture Trustee; or

(iii) The Master Servicer or Receivables Servicer received possession of such instruments or
tangible chattel paper after the Indenture Trustee received a written acknowledgment from the
Master Servicer or the Receivables Servicer, as applicable, that such Person is acting solely as
agent of the Indenture Trustee.

Priority

8. The Seller has not authorized the filing of, or is not aware of, any financing statements
against the Seller that include a description of collateral covering the Receivables other than any
financing statement (i) relating to the conveyance of the Receivables by BANA to the Seller under
the Purchase Agreement, (ii) relating to the security interest granted to Issuer hereunder or (iii)
that has been terminated.

9. The Seller is not aware of any material judgment, ERISA or tax lien filings against the Seller.

10. Neither the Seller nor a custodian or vaulting agent thereof holding any Receivable that is
electronic chattel paper has communicated an authoritative copy of any loan agreement that
constitutes or evidences such Receivable to any Person other than the Master Servicer or the
Receivables Servicer.

11. None of the instruments, tangible chattel paper or electronic chattel paper that constitute or
evidence the Receivables has any marks or notations indicating that they have been pledged,
assigned or otherwise conveyed to any Person other than the Seller, the Issuer or the Indenture
Trustee.

Survival of Perfection Representations

12. Notwithstanding any other provision of the Sale Agreement or any other Transaction Document,
the perfection representations, warranties and covenants contained in this Exhibit B shall
be continuing, and remain in full force and effect until such time as all obligations under the
Transaction Documents and the Notes have been finally and fully paid and performed.

No Waiver

13. The parties to the Sale Agreement shall provide the Rating Agencies with prompt written notice
of any breach of the perfection representations, warranties and covenants contained in this
Exhibit B, and shall not, without satisfying the Rating Agency Condition, waive a breach of
any of such perfection representations, warranties or covenants.

					
	 	 	 	 	 
	 
	 	 
	 	Exhibit B to the
	 
	 	 	 	Sale Agreement

B-2

 

APPENDIX A

DEFINITIONS

     The following terms have the meanings set forth, or referred to, below:

     “Accrued Class A Note Interest” shall mean, with respect to any Payment Date, the sum of the
Class A Noteholders’ Monthly Accrued Interest for such Payment Date and the Class A Noteholders’
Interest Carryover Shortfall for such Payment Date.

     “Accrued Class B Note Interest” shall mean, with respect to any Payment Date, the sum of the
Class B Noteholders’ Monthly Accrued Interest for such Payment Date and the Class B Noteholders’
Interest Carryover Shortfall for such Payment Date.

     “Accrued Class C Note Interest” shall mean, with respect to any Payment Date, the sum of the
Class C Noteholders’ Monthly Accrued Interest for such Payment Date and the Class C Noteholders’
Interest Carryover Shortfall for such Payment Date.

     “Act” has the meaning set forth in Section 11.3(a) of the Indenture.

     “Administrative Receivable” means a Receivable which the Receivables Servicer has repurchased
pursuant to the Receivables Servicing Agreement or which the Master Servicer has repurchased
pursuant to Section 3.8 of the Master Servicing Agreement.

     “Affiliate” means, with respect to any specified Person, any other Person controlling or
controlled by or under common control with such specified Person. For the purposes of this
definition, “control” when used with respect to any specified Person means the power to direct the
management and policies of such Person, directly or indirectly, whether through the ownership of
voting securities, by contract or otherwise; and the terms “controlling” and “controlled” will have
meanings correlative to the foregoing.

     “Aggregate Net Loss” means, with respect to a Collection Period, an amount (which may be a
positive or negative number) equal to (a) the aggregate Amount Financed immediately prior to
becoming a Defaulted Receivable of each Receivable newly designated as a Defaulted Receivable
during that Collection Period minus (b) all Liquidation Proceeds collected during that Collection
Period with respect to all Defaulted Receivables.

     “Amount Financed” means, with respect to a Receivable and as of any date, the Original Amount
Financed, less:

     (i) payments received from or on behalf of the related Obligor prior to such date
allocable to principal;

     (ii) any amount allocable to the premium for physical damage insurance covering the
Financed Vehicle force-placed by the Master Servicer or the Receivables Servicer, as
applicable;

					
	 	 	 	 	 
	 
	 	 
	 	Definitions (2006-G1)

 

 

     (iii) any refunded portion of extended warranty protection plans costs, physical
damage, credit life or disability, warranties, debt cancellation and other insurance
premiums included in the Original Amount Financed and allocable to principal;

     (iv) any Administrative Purchase Payment or Warranty Payment to the extent allocable to
principal; and

     (v) any Liquidation Proceeds previously received on or prior to the last day of the
related Collection Period allocable to principal with respect to such Receivable.

     “Annual Percentage Rate” or “APR” of a Receivable means the annual rate of finance charges
stated in such Receivable.

     “Applicable Tax State” means, as of any date, each State as to which any of the following is
then applicable: (a) a State in which the Owner Trustee maintains its Corporate Trust Office, (b) a
State in which the Owner Trustee maintains its principal executive offices and (c) the State of
North Carolina.

     “Authenticating Agent” means any Person authorized by the Indenture Trustee to act on behalf
of the Indenture Trustee to authenticate and deliver the Notes.

     “Authorized Newspaper” means a newspaper of general circulation in the City of New York,
printed in the English language and customarily published on each Business Day, whether or not
published on Saturdays, Sundays and holidays.

     “Authorized Officer” means (a) with respect to the Issuer, any officer of the Owner Trustee
who is authorized to act for the Owner Trustee in matters relating to the Issuer and who is
identified on the list of Authorized Officers delivered by the Owner Trustee to the Indenture
Trustee on the Closing Date, and with respect to the issuance of an Officer’s Certificate by the
Issuer, any officer of the Depositor who is authorized to act for the Depositor in matters relating
to the Issuer and who is identified on the list of Authorized Officers delivered by the Depositor
to the Indenture Trustee on the Closing Date and (b) with respect to the Owner Trustee, the
Indenture Trustee and the Master Servicer, any officer of the Owner Trustee, the Indenture Trustee
or the Master Servicer, as applicable, who is authorized to act for the Owner Trustee, the
Indenture Trustee or the Master Servicer, as applicable, in matters relating to the Owner Trustee,
the Indenture Trustee or the Master Servicer and who is identified on the list of Authorized
Officers delivered by each of the Owner Trustee, the Indenture Trustee and the Master Servicer to
the Indenture Trustee on the Closing Date (as such list may be modified or supplemented from time
to time thereafter).

     “Available Collections” means, for any Payment Date and the related Collection Period, an
amount equal to the sum of the following amounts: (i) all Collections received by the Master
Servicer or the Receivables Servicer, as applicable, during such Collection Period, (ii) the sum
of the purchase price received for Receivables which were required to be purchased by CARI or GMAC
and the Repurchase Prices deposited into the Collection Account during the related Collection
Period with respect to each Receivable that is to become a Repurchased Receivable and (iii) any
investment income accrued during such Collection Period from the investment of funds in the
Collection Account.

					
	 	 	 	 	 
	 
	 	 
	 	Definitions (2006-G1)

2

 

     “BAC” means Bank of America Corporation, a Delaware corporation and its successors and
assigns.

     “BANA” means Bank of America, National Association, a national banking association, and its
successors and assigns.

     “Bankruptcy Code” means the United States Bankruptcy Code, 11 U.S.C. 101 et seq., as amended.

     “Bankruptcy Event” means, with respect to any Person, (i) the filing of a decree or order for
relief by a court having jurisdiction in the premises in respect of such Person in an involuntary
case under any applicable federal or state bankruptcy, insolvency or other similar law now or
hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official of such Person, or ordering the winding-up or liquidation of such
Person’s affairs, and such decree or order shall remain unstayed and in effect for a period of 90
consecutive days or (ii) the commencement by such Person of a voluntary case under any applicable
federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or the
consent by such Person to the entry of an order for relief in an involuntary case under any such
law, or the consent by such Person to the appointment or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official of such Person, or the
making by such Person of any general assignment for the benefit of creditors, or the failure by
such Person generally to pay its debts as such debts become due, or the taking of action by such
Person in furtherance of any of the foregoing.

     “Bankruptcy Remote Party” means each of the Seller, the Issuer, any other trust created by the
Seller or any limited liability company or corporation wholly-owned by the Seller.

     “Benefit Plan” means (i) any “employee benefit plan” (as defined in Section 3(3) of ERISA)
that is subject to Title I of ERISA, (ii) a “plan” described by Section 4975(e)(1) of the Code or
(iii) any entity deemed to hold the assets of any of the foregoing by reason of an employee benefit
plan’s or other plan’s investment in such entity.

     “Blue Ridge” means Blue Ridge Investments, L.L.C., a Delaware limited liability company, and
its successors and assigns.

     “Book-Entry Notes” means a beneficial interest in the Notes, ownership and transfers of which
shall be made through book entries by a Clearing Agency as described in Section 2.10 of the
Indenture.

     “Business Day” means any day other than a Saturday, a Sunday or a day on which banking
institutions or trust companies in the states of Delaware, New York or Michigan, or in the state in
which the Corporate Trust Office of the Indenture Trustee is located, are authorized or obligated
by law, executive order or government decree to be closed.

     “CARI” means Capital Auto Receivables LLC, a Delaware limited liability company, formerly
known as Capital Auto Receivables, Inc. and its successors and assigns.

					
	 	 	 	 	 
	 
	 	 
	 	Definitions (2006-G1)

3 

 

     “CARI Purchase Agreement” means the Purchase and Sale Agreement, dated as of September 21,
2006, between CARI, as seller, and BANA, as purchaser, as amended, modified or supplemented from
time to time.

     “Certificate” means a certificate substantially in the form of Exhibit A to the Trust
Agreement evidencing the Residual Interest.

     “Certificate of Title” means, with respect to any Financed Vehicle, the certificate of title
or other documentary evidence of ownership of such Financed Vehicle as issued by the department,
agency or official of the jurisdiction (whether in paper or electronic form) in which such Financed
Vehicle is titled responsible for accepting applications for, and maintaining records regarding,
certificates of title and liens thereon.

     “Certificateholder” means any Holder of a Certificate.

     “Class” means a group of Notes whose form is identical except for variation in denomination,
principal amount or owner, and references to “each Class” thus mean each of the Class A-1 Notes,
the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, the Class B Notes and the Class C
Notes.

     “Class A Notes” shall mean, collectively, the Class A-1 Notes, the Class A-2 Notes, the Class
A-3 Notes and the Class A-4 Notes.

     “Class A Noteholders’ Interest Carryover Shortfall” shall mean, with respect to any Payment
Date, the excess of the sum of the Class A Noteholders’ Monthly Accrued Interest for the preceding
Payment Date and any outstanding Class A Noteholders’ Interest Carryover Shortfall on such
preceding Payment Date, over the amount in respect of interest that is actually paid to Noteholders
of Class A Notes on such preceding Payment Date, plus interest on the amount of interest due but
not paid to Noteholders of Class A Notes on the preceding Payment Date, to the extent permitted by
law, at the respective Interest Rates borne by such Class A Notes for the related Interest Period.

     “Class A Noteholders’ Monthly Accrued Interest” shall mean, with respect to any Payment Date,
the aggregate interest accrued for the related Interest Period on the Class A-1 Notes, the Class
A-2 Notes, the Class A-3 Notes and the Class A-4 Notes at the respective Interest Rate for such
Class on the Note Balance of the Notes of each such Class on the immediately preceding Payment Date
or the Closing Date, as the case may be, after giving effect to all payments of principal to the
Noteholders of such Class on or prior to such preceding Payment Date.

     “Class A-1 Final Scheduled Payment Date” shall mean the Payment Date occurring in November,
2007.

     “Class A-1 Interest Rate” means 5.34895% per annum (computed on the basis of the actual number
of days elapsed, but assuming a 360-day year).

     “Class A-1 Note Balance” means, at any time, the Initial Class A-1 Note Balance reduced by all
payments of principal made prior to such time on the Class A-1 Notes.

					
	 	 	 	 	 
	 
	 	 
	 	Definitions (2006-G1)

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     “Class A-1 Noteholder” means the Person in whose name a Class A-1 Note is registered on the
Note Register.

     “Class A-1 Notes” means the Class of Auto Loan Asset Backed Notes designated as Class A-1
Notes, issued in accordance with the Indenture.

     “Class A-2 Final Scheduled Payment Date” shall mean the Payment Date occurring in March, 2009.

     “Class A-2 Interest Rate” means 5.30% per annum (computed on the basis of a 360-day year of
twelve 30-day months).

     “Class A-2 Note Balance” means, at any time, the Initial Class A-2 Note Balance reduced by all
payments of principal made prior to such time on the Class A-2 Notes.

     “Class A-2 Noteholder” means the Person in whose name a Class A-2 Note is registered on the
Note Register.

     “Class A-2 Notes” means the Class of Auto Loan Asset Backed Notes designated as Class A-2
Notes, issued in accordance with the Indenture.

     “Class A-3 Final Scheduled Payment Date” shall mean the Payment Date occurring in June, 2010.

     “Class A-3 Interest Rate” means 5.18% per annum (computed on the basis of a 360-day year of
twelve 30-day months).

     “Class A-3 Note Balance” means, at any time, the Initial Class A-3 Note Balance reduced by all
payments of principal made prior to such time on the Class A-3 Notes.

     “Class A-3 Noteholder” shall mean the Person in whose name a Class A-3 Note is registered on
the Note Register.

     “Class A-3 Notes” means the Class of Auto Loan Asset Backed Notes designated as Class A-3
Notes, issued in accordance with the Indenture.

     “Class A-4 Final Scheduled Payment Date” shall mean the Payment Date occurring in December,
2010.

     “Class A-4 Interest Rate” means 5.17% per annum (computed on the basis of a 360-day year of
twelve 30-day months).

     “Class A-4 Note Balance” means, at any time, the Initial Class A-4 Note Balance reduced by all
payments of principal made prior to such time on the Class A-4 Notes.

     “Class A-4 Noteholder” shall mean the Person in whose name a Class A-4 Note is registered on
the Note Register.

					
	 	 	 	 	 
	 
	 	 
	 	Definitions (2006-G1)

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     “Class A-4 Notes” means the Class of Auto Loan Asset Backed Notes designated as Class A-4
Notes, issued in accordance with the Indenture.

     “Class B Final Scheduled Payment Date” shall mean the Payment Date occurring in February,
2011.

     “Class B Interest Rate” means 5.34% per annum (computed on the basis of a 360-day year of
twelve 30-day months).

     “Class B Note Balance” means, at any time, the Initial Class B Note Balance reduced by all
payments of principal made prior to such time on the Class B Notes.

     “Class B Noteholder” shall mean the Person in whose name a Class B Note is registered on the
Note Register.

     “Class B Noteholders’ Interest Carryover Shortfall” shall mean, with respect to any Payment
Date, the excess of the sum of Class B Noteholders’ Monthly Accrued Interest for the preceding
Payment Date and any outstanding Class B Noteholders’ Interest Carryover Shortfall on such
preceding Payment Date, over the amount in respect of interest that is actually paid to Noteholders
of Class B Notes on such preceding Payment Date, plus interest on the amount of interest due but
not paid to Noteholders of Class B Notes on the preceding Payment Date, to the extent permitted by
law, at the Class B Interest Rate for the related Interest Period.

     “Class B Noteholders’ Monthly Accrued Interest” shall mean, with respect to any Payment Date,
the aggregate interest accrued for the related Interest Period on the Class B Notes at the Class B
Interest Rate on the Class B Note Balance on the immediately preceding Payment Date or the Closing
Date, as the case may be, after giving effect to all payments of principal to the Class B
Noteholders on or prior to such preceding Payment Date.

     “Class B Notes” means the Class of Auto Loan Asset Backed Notes designated as Class B Notes,
issued in accordance with the Indenture.

     “Class C Final Scheduled Payment Date” shall mean the Payment Date occurring in February,
2013.

     “Class C Interest Rate” means 5.51% per annum (computed on the basis of a 360-day year of
twelve 30-day months).

     “Class C Note Balance” means, at any time, the Initial Class C Note Balance reduced by all
payments of principal made prior to such time on the Class C Notes.

     “Class C Noteholder” shall mean the Person in whose name a Class C Note is registered on the
Note Register.

     “Class C Noteholders’ Interest Carryover Shortfall” shall mean, with respect to any Payment
Date, the excess of the sum of Class C Noteholders’ Monthly Accrued Interest for the preceding
Payment Date and any outstanding Class C Noteholders’ Interest Carryover Shortfall on such
preceding Payment Date, over the amount in respect of interest that is actually paid to

					
	 	 	 	 	 
	 
	 	 
	 	Definitions (2006-G1)

6

 

Noteholders of Class C Notes on such preceding Payment Date, plus interest on the amount of interest due but
not paid to Noteholders of Class C Notes on the preceding Payment Date, to the extent permitted by
law, at the Class C Interest Rate for the related Interest Period.

     “Class C Noteholders’ Monthly Accrued Interest” shall mean, with respect to any Payment Date,
the aggregate interest accrued for the related Interest Period on the Class C Notes at the Class C
Interest Rate on the Class C Note Balance on the immediately preceding Payment Date or the Closing
Date, as the case may be, after giving effect to all payments of principal to the Class C
Noteholders on or prior to such preceding Payment Date.

     “Class C Notes” means the Class of Auto Loan Asset Backed Notes designated as Class C Notes,
issued in accordance with the Indenture.

     “Clearing Agency” means an organization registered as a “clearing agency” pursuant to Section
17A of the Exchange Act and shall initially be DTC.

     “Clearing Agency Participant” means a broker, dealer, bank or other financial institution or
other Person for which from time to time a Clearing Agency effects book-entry transfers and pledges
of securities deposited with the Clearing Agency.

     “Closing Date” means November 14, 2006.

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

     “Collateral” has the meaning set forth in the Granting Clause of the Indenture.

     “Collections” means all amounts collected by the Master Servicer or the Receivables Servicer
(from whatever source) on or with respect to the Receivables; provided, however, that the term
“Collections” in no event will include (1) any amounts in respect of any Repurchased Receivable the
purchase price or Repurchase Price of which has been included in the Available Collections or (2)
any Supplemental Servicing Fees.

     “Collection Account” means the segregated trust account established and maintained pursuant to
Section 8.2(a)(i) of the Indenture.

     “Collection Period” means the period commencing on the first day of each calendar month and
ending on the last day of such calendar month (or, in the case of the initial Collection Period,
the period commencing on the Cut-Off Date and ending on November 30, 2006). As used herein, the
“related” Collection Period with respect to a Payment Date shall be deemed to be the Collection
Period which precedes such Payment Date.

     “Commission” means the U.S. Securities and Exchange Commission.

     “Controlling Class” shall mean, with respect to any Notes Outstanding, the Class A Notes
(voting together as a single Class) as long as any Class A Notes are Outstanding, and thereafter
the Class B Notes as long as any Class B Notes are Outstanding, and thereafter the

					
	 	 	 	 	 
	 
	 	 
	 	Definitions (2006-G1)

7

 

Class C Notes as long as any Class C Notes are outstanding (excluding, in each case, Notes held by the Master
Servicer, the Seller or any of their respective Affiliates).

     “Corporate Trust Office” means:

     (a) as used with respect to the Indenture Trustee, the office of the Indenture Trustee at
which at any particular time its corporate trust business shall be administered which office at
date of the execution of the Indenture is located at 209 South LaSalle Street, Suite 300, Chicago,
Illinois 60604 (telecopier no. (312) 325-8905), Attention: BAS Auto Trust 2006-G1, or at such other
address as the Indenture Trustee may designate from time to time by notice to the Noteholders, the
Master Servicer and the Issuer, or the principal corporate trust office of any successor Indenture
Trustee (the address of which the successor Indenture Trustee will notify the Noteholders, the
Master Servicer and the Owner Trustee), provided that for purposes of presenting the Notes for
final payment thereon, such address shall be 60 Livingston Avenue, EP-MN-WS3D, St. Paul, Minnesota
55107; and

     (b) as used with respect to Owner Trustee, the corporate trust office of the Owner Trustee
located at 1100 North Market Street, Rodney Square North, Wilmington, Delaware 19890-0001
(telecopier no. (302) 636-4140), Attention: Corporate Trust Administration, or at such other
address as the Owner Trustee may designate by notice to the Residual Interestholder and the Seller,
or the principal corporate trust office of any successor Owner Trustee (the address of which the
successor Owner Trustee will notify the Residual Interestholder and the Seller).

     “Cumulative Net Losses” means, as of any Payment Date, the aggregate Net Losses experienced on
all Defaulted Receivables from the Cut-Off Date through the last day of the related Collection
Period.

     “Custodian” means BANA, initially, and any replacement Custodian appointed pursuant to the
Master Servicing Agreement; it being understood that BANA has delegated to GMAC custodial
responsibilities pursuant to the Receivables Servicing Agreement.

     “Customary Servicing Practices” means the customary servicing practices of the Master Servicer
or the Receivables Servicer with respect to all comparable motor vehicle receivables that the
Master Servicer or the Receivables Servicer, as applicable, services for itself or others, as such
customary servicing practices may be changed from time to time it being understood that the Master
Servicer and the Receivables Servicer may not have the same “Customary Servicing Practices”.

     “Cut-Off Date” means the opening of business on October 1, 2006.

     “Dealer” means the seller of automobiles or light trucks that originated one or more of the
Receivables and assigned the respective Receivables, directly or indirectly, to GMAC under an
existing agreement between such seller and GMAC or between such seller and General Motors, as
applicable.

     “Default” means any occurrence that is, or with notice or lapse of time or both would become,
an Event of Default.

					
	 	 	 	 	 
	 
	 	8
	 	Definitions (2006-G1)

 

 

     “Defaulted Receivable” means a Receivable as to which the Master Servicer or the Receivables
Servicer (i) has reasonably determined, in accordance with its Customary Servicing Practices, that
eventual payment of amounts owing on such Receivable is unlikely, or (ii) has repossessed and
disposed of the Financed Vehicle.

     “Definitive Note” means a definitive fully registered Note issued pursuant to Section
2.12 of the Indenture.

     “Delinquent Receivable” means a Receivable for which payment within $25 of the required
payment has not been received by the Receivables Servicer or the Master Servicer, as applicable, by
the payment due date.

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

     (a) with respect to (I) bankers’ acceptances, commercial paper, negotiable certificates
of deposit and other obligations that constitute “instruments” as defined in Section
9-102(47) of the UCC and are susceptible of physical delivery, transfer of actual possession
thereof to the Indenture Trustee or its nominee or custodian by physical delivery to the
Indenture Trustee or its nominee or custodian endorsed to, or registered in the name of, the
Indenture Trustee or its nominee or custodian or endorsed in blank, and (II) with respect to
a “certificated security” (as defined in Section 8-102(a)(4) of the UCC) transfer of actual
possession thereof (i) by physical delivery of such certificated security to the Indenture
Trustee or its nominee or custodian endorsed to, or registered in the name of, the Indenture
Trustee or its nominee or custodian or endorsed in blank, or to another person, other than a
“securities intermediary” (as defined in Section 8-102(14) of the UCC), who acquires
possession of the certificated security on behalf of the Indenture Trustee or its nominee or
custodian or, having previously acquired possession of the certificate, acknowledges that it
holds for the Indenture Trustee or its nominee or custodian or (ii) by delivery thereof to a
“securities intermediary”, endorsed to or registered in the name of the Indenture Trustee or
its nominee or custodian, or endorsed in blank, and the making by such “securities
intermediary” of entries on its books and records identifying such certificated securities
as belonging to the Indenture Trustee or its nominee or custodian and the sending by such
“securities intermediary” of a confirmation of the purchase of such certificated security by
the Indenture Trustee or its nominee or custodian (all of the foregoing, “Physical
Property”), and, in any event, any such Physical Property in registered form shall be in the
name of the Indenture Trustee or its nominee or custodian; and such additional or
alternative procedures as may hereafter become appropriate to effect the complete transfer
of ownership of any such Trust Account Property to the Indenture Trustee or its nominee or
custodian, consistent with changes in applicable law or regulations or the interpretation
thereof;

     (b) with respect to any securities issued by the U.S. Treasury, the Federal Home Loan
Mortgage Corporation, the Federal National Mortgage Association or the other government
agencies, instrumentalities and establishments of the United States identified in Appendix A
to Federal Reserve Bank Operating Circular No. 7 as in effect from time to time that is a
“book-entry security” (as such term is defined in Federal Reserve Bank Operating Circular
No. 7) held in a securities account and eligible for

 
					
	 	 	 	 	 
	 
	 	 
	 	Definitions (2006-G1)

9

 

transfer through the
Fedwire® Securities Service operated by the Federal Reserve System pursuant to
Federal book-entry regulations, the following procedures, all in accordance with applicable
law, including applicable Federal regulations and Articles 8 and 9 of the UCC: book-entry
registration of such Trust Account Property to an appropriate securities account maintained
with a Federal Reserve Bank by a “participant” (as such term is defined in Federal Reserve
Bank Operating Circular No. 7) that is a “depository institution” (as defined in Section 19(B)(1)(A) of the Federal Reserve Act) pursuant to
applicable Federal regulations, and issuance by such depository institution of a deposit
advice or other written confirmation of such book-entry registration to the Indenture
Trustee or its nominee or custodian of the purchase by the Indenture Trustee or its nominee
or custodian of such book-entry securities; the making by such depository institution of
entries in its books and records identifying such book-entry security held through the
Federal Reserve System pursuant to Federal book-entry regulations or a security entitlement
thereto as belonging to the Indenture Trustee or its nominee or custodian and indicating
that such depository institution holds such Trust Account Property solely as agent for the
Indenture Trustee or its nominee or custodian; and such additional or alternative procedures
as may hereafter become appropriate to effect complete transfer of ownership of any such
Trust Account Property to the Indenture Trustee or its nominee or custodian, consistent with
changes in applicable law or regulations or the interpretation thereof; and

     (c) with respect to any item of Trust Account Property that is an uncertificated
security (as defined in Section 8-102(a)(18) of the UCC) and that is not governed by
clause (b) above, (i) registration on the books and records of the issuer thereof in
the name of the Indenture Trustee or its nominee or custodian, or (ii) registration on the
books and records of the issuer thereof in the name of another person, other than a
securities intermediary, who acknowledges that it holds such uncertificated security for the
benefit of the Indenture Trustee or its nominee or custodian.

     “Depositor” means the Seller in its capacity as Depositor under the Trust Agreement.

     “Determination Date” means the third Business Day preceding the related Payment Date,
beginning December 13, 2006.

     “Discount Receivable” means any Receivable that has an APR which is less than the Required
Rate.

     “Dollar” and “$” mean lawful currency of the United States of America.

     “DTC” means The Depository Trust Company, and its successors.

     “Eligible Account” means either (a) a segregated account with an Eligible Institution or (b) a
segregated trust account with the corporate trust department of a depository institution acting in
its fiduciary capacity organized under the laws of the United States of America or any one of the
states thereof or the District of Columbia (or any domestic branch of a foreign bank), having
corporate trust powers and acting as trustee for funds deposited in such account, so long as the
long-term unsecured debt of such depository institution shall have a credit rating from

					
	 	 	 	 	 
	 
	 	 
	 	Definitions (2006-G1)

10

 

each Rating Agency in one of its generic rating categories which signifies investment grade. Any such trust
account may be maintained with the Owner Trustee, the Indenture Trustee or any of their respective
Affiliates, if such accounts meet the requirements described in clause (b) of the preceding
sentence.

     “Eligible Institution” means a depository institution or trust company (other than any
Affiliate of BANA) (which may be the Owner Trustee, the Indenture Trustee or any of their
respective Affiliates) organized under the laws of the United States of America or any one of the
states thereof or the District of Columbia (or any domestic branch of a foreign bank) (a)
which at all times has either (i) a long-term senior unsecured debt rating of “Aa2” or better by
Moody’s and “AA-” or better by Standard & Poor’s or such other rating that is acceptable to each
Rating Agency, as evidenced by a letter from such Rating Agency to the Issuer or the Indenture
Trustee or (ii) a certificate of deposit rating of “P-1” by Moody’s and “A-1+” by Standard & Poor’s
or such other rating that is acceptable to each Rating Agency, as evidenced by a letter from such
Rating Agency to the Issuer or the Indenture Trustee and (b) whose deposits are insured by the
Federal Deposit Insurance Corporation.

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

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

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

     (c) commercial paper (including commercial paper of any Affiliate of the Seller, the
Master Servicer, the Indenture Trustee or the Owner Trustee) having, at the time of the
investment or contractual commitment to invest therein, a rating from Standard & Poor’s of
at least A-1 and from Moody’s of Prime-1;

     (d) investments in money market funds (including funds for which the Seller, the Master
Servicer, the Indenture Trustee or Owner Trustee or any of their respective Affiliates is
investment manager or advisor) having a rating from Standard & Poor’s of AAA-m or AAAm-G and
from Moody’s of Aaa;

					
	 	 	 	 	 
	 
	 	 
	 	Definitions (2006-G1)

11

 

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

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

     (g) any other investment of similar credit quality as the “Eligible Investments”
referred to in clauses (a) through (f) above with respect to which each
Rating Agency has provided written notice that such investment would not cause such Rating
Agency to downgrade, qualify or withdraw its then current rating of any Class of Notes.

     “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended.

     “Event of Default” has the meaning set forth in Section 5.1 of the Indenture.

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

     “Final Scheduled Payment Date” means, with respect to (i) the Class A-1 Notes, the Class A-1
Final Scheduled Payment Date, (ii) the Class A-2 Notes, the Class A-2 Final Scheduled Payment Date,
(iii) the Class A-3 Notes, the Class A-3 Final Scheduled Payment Date, (iv) the Class A-4 Notes,
the Class A-4 Final Scheduled Payment Date, (v) the Class B Notes, the Class B Final Scheduled
Payment Date and (vi) the Class C Notes, the Class C Final Scheduled Payment Date.

     “Financed Vehicle” means an automobile or light-duty truck, together with all accessions
thereto, securing an Obligor’s indebtedness under the applicable Receivable.

     “First Allocation of Principal” means, with respect to any Payment Date, an amount equal to
the excess, if any, of (a) the Note Balance of the Class A Notes as of such Payment Date (before
giving effect to any principal payments made on the Class A Notes on such Payment Date) over (b)(i)
the Pool Balance as of the end of the related Collection Period minus (ii) the sum of the YSOC
Amount for such Payment Date and the Targeted Overcollateralization Amount; provided, however, that
the “First Allocation of Principal” shall not exceed the Note Balance of the Class A Notes (before
giving effect to any principal payments made on the Class A Notes on such Payment Date); provided,
further, that the “First Allocation of Principal” for any Payment Date on and after the Final
Scheduled Payment Date for any Class of Class A Notes shall not be less than the amount that is
necessary to reduce the Note Balance of that Class of Class A Notes to zero.

     “Form 10-D” has the meaning set forth in Section 7.5 of the Indenture.

     “Form 10-K” has the meaning set forth in Section 7.5 of the Indenture.

     “GAAP” means generally accepted accounting principles in the USA, applied on a materially
consistent basis.

					
	 	 	 	 	 
	 
	 	 
	 	Definitions (2006-G1)

12

 

     “General Motors” means General Motors Corporation, a Delaware corporation.

     “GMAC” means GMAC LLC, a Delaware limited liability company, and its successors and assigns.

     “GMAC Sale Agreement” means the Sale Agreement, dated as of September 21, 2006, between GMAC
and CARI, as amended, modified or supplemented from time to time.

     “Governmental Authority” means any (a) Federal, state, municipal, foreign or other
governmental entity, board, bureau, agency or instrumentality, (b) administrative or regulatory
authority (including any central bank or similar authority) or (c) court or judicial authority.

     “Grant” means mortgage, pledge, bargain, sell, warrant, alienate, remise, release, convey,
assign, transfer, create, grant a lien upon and a security interest in and right of set-off
against, deposit, set over and confirm pursuant to the Indenture. A Grant of the Collateral or of
any other agreement or instrument shall include all rights, powers and options (but none of the
obligations) of the Granting party thereunder, including the immediate and continuing right to
claim for, collect, receive and give receipt for principal and interest payments in respect of the
Collateral and all other moneys payable thereunder, to give and receive notices and other
communications, to make waivers or other agreements, to exercise all rights and options, to bring
proceedings in the name of the Granting party or otherwise and generally to do and receive anything
that the Granting party is or may be entitled to do or receive thereunder or with respect thereto.
Other forms of the verb “to Grant” shall have correlative meanings.

     “Holder” means, as the context may require, a Certificateholder or a Noteholder or both.

     “Indenture” means the Indenture, dated as of the Closing Date, between the Issuer and
Indenture Trustee and acknowledged by the Depositor, as the same may be amended and supplemented
from time to time.

     “Indenture Trustee” means U.S. Bank National Association, a national banking association, not
in its individual capacity but as indenture trustee under the Indenture, or any successor trustee
under the Indenture.

     “Indenture Trustee Certification” means the certification in the form attached as Exhibit
C to the Indenture.

     “Indenture Trustee Provided Information” means the information included in or attached as
Exhibit A to the Officer’s Certificate of the Indenture Trustee delivered on the Closing
Date and contained in the Preliminary Prospectus Supplement and the Prospectus Supplement.

     “Indenture Trustee’s Certificate” means the certificate delivered pursuant to Section
7.4 of the Indenture.

     “Independent” means, when used with respect to any specified Person, that such Person (i) is
in fact independent of the Issuer, any other obligor upon the Notes, the Master Servicer and any
Affiliate of any of the foregoing Persons, (ii) does not have any direct financial interest or any
material indirect financial interest in the Issuer, any such other obligor, the Master Servicer

					
	 	 	 	 	 
	 
	 	 
	 	Definitions (2006-G1)

13

 

or any Affiliate of any of the foregoing Persons and (iii) is not connected with the Issuer, any such
other obligor, the Master Servicer or any Affiliate of any of the foregoing Persons as an officer,
employee, promoter, underwriter, trustee, partner, director or Person performing similar functions.

     “Independent Certificate” means a certificate or opinion to be delivered to the Indenture
Trustee under the circumstances described in, and otherwise complying with, the applicable
requirements of Section 11.1 of the Indenture, made by an independent appraiser or other
expert appointed by an Issuer Order, and such opinion or certificate shall state that the signer
has read the definition of “Independent” in this Appendix A and that the signer is Independent
within the meaning thereof.

     “Initial Class A-1 Note Balance” means $596,000,000.

     “Initial Class A-2 Note Balance” means $484,000,000.

     “Initial Class A-3 Note Balance” means $354,000,000.

     “Initial Class A-4 Note Balance” means $124,800,000.

     “Initial Class B Note Balance” means $32,600,000.

     “Initial Class C Note Balance” means $24,500,000.

     “Initial Note Balance” means, for any Class, the Initial Class A-1 Note Balance, the Initial
Class A-2 Note Balance, the Initial Class A-3 Note Balance, the Initial Class A-4 Note Balance, the
Initial Class B Note Balance or the Initial C Note Balance, as applicable, or with respect to the
Notes generally, the sum of the foregoing.

     “Insurance Policy” means, with respect to a Receivable, an insurance policy covering physical
damage, warranties, debt cancellation, credit life, credit disability, theft, mechanical breakdown
or similar event with respect to the related Financed Vehicle.

     “Interest Period” means (i) with respect to the first Payment Date, the period from and
including the Closing Date to but excluding the first Payment Date and (ii) with respect to each
subsequent Payment Date, the period from and including the prior Payment Date to but excluding such
subsequent Payment Date.

     “Interest Rate” means (a) with respect to the Class A-1 Notes, the Class A-1 Interest Rate,
(b) with respect to the Class A-2 Notes, the Class A-2 Interest Rate, (c) with respect to the Class
A-3 Notes, the Class A-3 Interest Rate, (d) with respect to the Class A-4 Notes, the Class A-4
Interest Rate, (e) with respect to the Class B Notes, the Class B Interest Rate or (f) with respect
to the Class C Notes, the Class C Interest Rate.

     “Issuer” means Banc of America Securities Auto Trust 2006-G1, a Delaware statutory trust
established pursuant to the Trust Agreement, until a successor replaces it and, thereafter, means
the successor and, for purposes of any provision contained herein, each other obligor on the Notes.

					
	 	 	 	 	 
	 
	 	 
	 	Definitions (2006-G1)

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     “Issuer Order” and “Issuer Request” means a written order or request of the Issuer signed in
the name of the Issuer by any one of its Authorized Officers and delivered to the Indenture
Trustee.

     “Lien” means, for any asset or property of a Person, a lien, security interest, mortgage,
pledge or encumbrance in, of or on such asset or property in favor of any other Person, except any
Permitted Lien.

     “Liquidation Expenses” means, with respect to a Defaulted Receivable, $300.00 (or such greater
amount as the Master Servicer or the Receivables Servicer, as applicable, determines necessary in
accordance with its customary procedures to refurbish and dispense of a repurchased Financed
Vehicle) as an allowance for amounts charged to the account of the Obligor, in keeping with such
Person’s customary procedures, for refurbishing and disposition of the Financed Vehicle and other
out-of-pocket costs related to the liquidation.

     “Liquidation Proceeds” means, with respect to a Defaulted Receivable, all amounts realized
with respect to such Receivable net of the Liquidation Expenses and any amounts that are
required to be refunded to the Obligor on such Receivable, but in any event not less than zero.

     “Master Servicer” means BANA, in its capacity as master servicer under the Master Servicing
Agreement.

     “Master Servicer Termination Event” has the meaning set forth in Section 6.1 of the
Master Servicing Agreement.

     “Master Servicing Agreement” means the agreement, dated as of the Closing Date, between BANA,
as master servicer, the Issuer, as issuer and U.S. Bank National Association, as indenture trustee.

     “Monthly Remittance Condition” shall be deemed to be satisfied as of any determination date
if: (i) BANA is the Master Servicer; (ii) the rating of BANA’s short-term unsecured debt is at
least P-1 by Moody’s and is at least A-1 by Standard & Poor’s; and (iii) no Master Servicer
Termination Event has occurred during such Collection Period.

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

     “Net Losses” means as of any Payment Date, for any Defaulted Receivable, the Amount Financed
of such Defaulted Receivable when it became a Defaulted Receivable minus all Liquidation Proceeds
received with respect to such Defaulted Receivable on or before the last day of the related
Collection Period.

     “Note” means a Class A-1 Note, Class A-2 Note, Class A-3 Note, Class A-4 Note, Class B Note or
Class C Note, in each case substantially in the forms of Exhibit A to the Indenture.

     “Note Balance” means, with respect to any date of determination, for any Class, the Class A-1
Note Balance, the Class A-2 Note Balance, the Class A-3 Note

					
	 	 	 	 	 
	 
	 	 
	 	Definitions (2006-G1)

15

 

Balance, the Class A-4 Note Balance, the Class B Note Balance or the Class C Note Balance, as applicable, or with respect to the Notes
generally, the sum of all of the foregoing.

     “Note Depository Agreement” means the agreement, dated as of the Closing Date, between the
Issuer and DTC, as the initial Clearing Agency relating to the Notes, as the same may be amended or
supplemented from time to time.

     “Note Factor” on a Payment Date means, with respect to each Class of Notes, a seven-digit
decimal figure equal to the Note Balance of such Class of Notes as of the end of the related
Collection Period divided by the Note Balance of such Class of Notes as of the Closing Date.
The Note Factor will be 1.000000 as of the Closing Date; thereafter, the Note Factor will decline
to reflect reductions in the Note Balance of such Class of Notes.

     “Note Owner” means, with respect to a Book-Entry Note, the Person who is the beneficial owner
of such Book-Entry Note, as reflected on the books of the Clearing Agency or a Person maintaining
an account with such Clearing Agency (directly as a Clearing Agency Participant or as an indirect
participant, in each case in accordance with the rules of such Clearing Agency).

     “Note Register” and “Note Registrar” have the respective meanings set forth in Section
2.4 of the Indenture.

     “Noteholder” means, as of any date, the Person in whose name a Note is registered on the Note
Register on such date.

     “Obligor” means the purchaser or co-purchasers of the Financed Vehicle or any other Person who
owes payments under a Receivable.

     “Officer’s Certificate” means (i) with respect to the Issuer, a certificate signed by any
Authorized Officer of the Issuer and (ii) with respect to the Seller or the Master Servicer, a
certificate signed by the chairman of the board, the president, any executive vice president, any
vice president, the treasurer, any assistant treasurer or the controller of the Seller or the
Master Servicer, as applicable.

     “Opinion of Counsel” means one or more written opinions of counsel who may, except as
otherwise expressly provided in the Indenture or any other applicable Transaction Document, be
employees of or counsel to the Issuer, the Master Servicer, the Receivables Servicer or the Seller,
and which opinion or opinions comply with any applicable requirements of the Transaction Documents
and are in form and substance reasonably satisfactory to the recipient(s). Opinions of Counsel
need address matters of law only and may be based upon stated assumptions as to relevant matters of
fact.

     “Optional Purchase” has the meaning set forth in Section 6.6 of the Master Servicing
Agreement.

     “Optional Purchase Price” has the meaning set forth in Section 10.1 of the Indenture.

					
	 	 	 	 	 
	 
	 	 
	 	Definitions (2006-G1)

16

 

     “Original Amount Financed” means, with respect to a Receivable and as of the date on which
such Receivable was originated, the aggregate amount advanced under the Receivable toward the
purchase price of the Financed Vehicle, including accessories, insurance premiums, service and
warranty contracts and other items customarily financed as part of automobile and light truck
retail installment sale contracts or direct purchase money loans and related costs.

     “Originator” means, with respect to any Receivable, GMAC or an Affiliate of GMAC.

     “Other Assets” means any assets (or interests therein) (other than the Trust Estate) conveyed
or purported to be conveyed by the Seller to another Person or Persons other than the Issuer,
whether by way of a sale, capital contribution or by virtue of the granting of a lien.

     “Outstanding” means, as of any date, all Notes (or all Notes of an applicable Class)
theretofore authenticated and delivered under the Indenture except:

     (i) Notes (or Notes of an applicable Class) theretofore cancelled by the Note Registrar or
delivered to the Note Registrar for cancellation;

     (ii) Notes (or Notes of an applicable Class) or portions thereof the payment for which money
in the necessary amount has been theretofore deposited with the Indenture Trustee or any Paying
Agent in trust for the related Noteholders (provided, however, that if such Notes are to be
redeemed, notice of such redemption has been duly given pursuant to the Indenture or provision
therefor, satisfactory to the Indenture Trustee, has been made); and

     (iii) Notes (or Notes of an applicable Class) in exchange for or in lieu of other Notes (or
Notes of such Class) that have been authenticated and delivered pursuant to the Indenture unless
proof satisfactory to the Indenture Trustee is presented that any such Notes are held by a bona
fide purchaser;

provided that in determining whether Noteholders holding the requisite Note Balance have given any
request, demand, authorization, direction, notice, consent, vote or waiver hereunder or under any
Transaction Document, Notes owned by the Issuer or any other obligor upon the Notes, or by any
Person directly or indirectly controlling or controlled by or under direct or indirect common
control with any such obligor shall be disregarded and deemed not to be Outstanding, except that,
in determining whether the Indenture Trustee shall be protected in relying upon any such request,
demand, authorization, direction, notice, consent, vote or waiver, only Notes that a Responsible
Officer of the Indenture Trustee knows to be so owned shall be so disregarded. Notes so owned that
have been pledged in good faith may be regarded as Outstanding if the pledgee thereof establishes
to the satisfaction of the Indenture Trustee such pledgee’s right so to act with respect to such
Notes and that such pledgee is not the Issuer, the Seller, the Master Servicer or any of their
respective Affiliates.

     “Owner Trustee” means Wilmington Trust Company, a Delaware banking corporation, not in its
individual capacity but solely as owner trustee under the Trust Agreement, and any successor Owner
Trustee thereunder.

     “Paying Agent” means the Indenture Trustee or any other Person that meets the eligibility
standards for the Indenture Trustee set forth in Section 6.11 of the Indenture and is
authorized by

					
	 	 	 	 	 
	 
	 	 
	 	Definitions (2006-G1)

17

 

the Issuer to make the payments to and distributions from the Principal Distribution
Account, including the payment of principal of or interest on the Notes on behalf of the Issuer.

     “Payment Date” means the 18th day of each calendar month beginning December 18, 2006,
provided, however, whenever a Payment Date would otherwise be a day that is not a Business Day, the
Payment Date shall be the next Business Day. As used herein, the “related” Payment Date with
respect to a Collection Period shall be deemed to be the Payment Date which immediately follows
such Collection Period.

     “Payment Default” has the meaning set forth in Section 5.4(a) of the Indenture.

     “Permitted Liens” means (a) any liens created by the Transaction Documents; (b) any liens for
taxes not due and payable or the amount of which is being contested in good faith by appropriate
proceedings; and (c) any liens of mechanics, suppliers, vendors, materialmen, laborers, employees,
repairmen and other like liens securing obligations which are not due and payable or the amount or
validity of which is being contested in good faith by appropriate proceedings.

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

     “Physical Property” has the meaning specified in the definition of “Delivery” above.

     “Pool Balance” means as of the close of business of the last day of a Collection Period, the
aggregate Amount Financed of the Receivables (excluding Repurchased Receivables and Defaulted
Receivables as of such date).

     “Pool Factor” on a Payment Date means a seven-digit decimal figure equal to the Pool Balance
as of the end of the preceding Collection Period divided by the sum of the aggregate Amount
Financed of the Receivables as of the Cut-Off Date. The Pool Factor will be 1.000000 as of the
Cut-Off Date; thereafter, the Pool Factor will decline to reflect reductions in the Pool Balance.

     “Predecessor Note” means, with respect to any particular Note, every previous Note evidencing
all or a portion of the same debt as that evidenced by such particular Note; provided, however, for
the purpose of this definition, any Note authenticated and delivered under Section 2.5 of
the Indenture in lieu of a mutilated, destroyed, lost or stolen Note shall be deemed to evidence
the same debt as the mutilated, destroyed, lost or stolen Note.

     “Preliminary Prospectus Supplement” means the preliminary prospectus supplement dated November
1, 2006, relating to the public offering of the Notes.

     “Principal Distribution Account” means the account by that name established and maintained
pursuant to Section 8.2(a)(ii) of the Indenture.

     “Proceeding” means any suit in equity, action at law or other judicial or administrative
proceeding.

					
	 	 	 	 	 
	 
	 	 
	 	Definitions (2006-G1)

18

 

     “Prospectus Supplement” means the prospectus supplement, dated November 3, 2006, relating to
the public offering of the Notes.

     “Purchase Agreement” means the Purchase Agreement, dated as of the Closing Date, between BANA
and the Seller, as amended, modified or supplemented from time to time.

     “Purchased Assets” has the meaning set forth in Section 2.1 of the Purchase Agreement.

     “Rating Agency” means Moody’s or Standard & Poor’s.

     “Rating Agency Condition” means, with respect to any event or circumstance and each Rating
Agency, either (a) written confirmation by such Rating Agency that the occurrence of such event or
circumstance will not cause such Rating Agency to downgrade, qualify or withdraw its rating
assigned to any of the Notes or (b) that such Rating Agency shall have been given notice of such
event at least ten days prior to the occurrence of such event (or, if ten days’ advance notice is
impracticable, as much advance notice as is practicable) and such Rating Agency shall not have
issued any written notice that the occurrence of such event will itself cause such Rating Agency to
downgrade, qualify or withdraw its rating assigned to the Notes.

     “Receivable” means a retail installment sale contract or direct purchase money loan for a
Financed Vehicle and any amendments, modifications or supplements to such retail installment sale
contract or direct purchase money loan that is included in the Schedule of Receivables. The term
“Receivable” does not include any Repurchased Receivable.

     “Receivable Files” means the documents specified in Section 2.1 of the Master
Servicing Agreement.

     “Receivables Servicer” means GMAC, initially, and any replacement Receivables Servicer
appointed by the Master Servicer.

     “Receivables Servicer Termination Event” means the “Events of Servicing Termination” set forth
in Section 6.1 of the Receivables Servicing Agreement.

     “Receivables Servicing Agreement” means the Servicing Agreement, dated as of September 21,
2006, between GMAC and BANA, as amended and restated by the Amended and Restated Servicing
Agreement dated as of the Closing Date, as the same may be amended and modified or supplemented
from time to time.

     “Record Date” means, unless otherwise specified in any Transaction Document, with respect to
any Payment Date or Redemption Date, (i) for any Definitive Notes and for the Certificates, if any,
the close of business on the last Business Day of the calendar month immediately preceding the
calendar month in which such Payment Date or Redemption Date occurs and (ii) for any Book-Entry
Notes, the close of business on the Business Day immediately preceding such Payment Date or
Redemption Date.

     “Records” means, for any Receivable, all contracts, books, records and other documents or
information (including computer programs, tapes, disks, software and related property and rights,
to the extent legally transferable) relating to such Receivable or the related Obligor.

					
	 	 	 	 	 
	 
	 	 
	 	Definitions (2006-G1)

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     “Redemption Date” means in the case of a redemption of the Notes pursuant to Section
10.1 of the Indenture, the Payment Date specified by the Indenture Trustee or the Issuer
pursuant to Section 10.1 of the Indenture.

     “Redemption Price” means an amount equal to the sum of (i) the unpaid Note Balance plus (ii)
accrued and unpaid interest thereon at the applicable Interest Rate for the Notes being so
redeemed, up to but excluding the Redemption Date.

     “Registered Holder” means the Person in whose name a Note is registered on the Note Register
on the related Record Date.

     “Regular Allocation of Principal” means, with respect to any Payment Date, an amount equal to
the excess, if any, of (a)(i) the Note Balance of the Class A Notes, the Class B Notes and the
Class C Notes as of such Payment Date (before giving effect to any principal payments made on the
Notes on such Payment Date) minus (ii) the First Allocation of Principal and the Second Allocation
of Principal for such Payment Date over (b)(i) the Pool Balance as of the end of the related
Collection Period minus (ii) the sum of the YSOC Amount for such Payment Date and the Targeted
Overcollateralization Amount; provided, however, that the Regular Allocation of Principal on and
after the Final Scheduled Payment Date for the Class C Notes shall not be less than the amount that
is necessary to reduce the outstanding principal amount of the Class C Notes to zero (after the
application of the First Allocation of Principal and the Second Allocation of Principal).

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

     “Repurchase Price” means, with respect to any Repurchased Receivable purchased by BANA, the
Master Servicer or the Seller, a price equal to the outstanding Amount Financed (calculated without
giving effect to clause (iv) contained in the definition of such term) of such Receivable
plus any unpaid accrued interest related to such Receivable accrued to and including the end of the
Collection Period preceding the date that such Repurchased Receivable was purchased by BANA, the
Master Servicer or the Seller, as applicable.

     “Repurchased Receivable” means any Receivable that is an Administrative Receivable or a
Warranty Receivable.

     “Required Rate” means 6.50%.

     “Residual Interest” means the beneficial interest in the Issuer, which shall be represented by
a Certificate.

     “Residual Interestholder” means the owner of the Residual Interest. Blue Ridge shall be the
initial Residual Interestholder.

					
	 	 	 	 	 
	 
	 	 
	 	Definitions (2006-G1)

20

 

     “Responsible Officer” means, (a) with respect to the Indenture Trustee, any officer within the
corporate trust department of the Indenture Trustee, including any vice president, assistant vice
president, assistant secretary, assistant treasurer, trust officer or any other officer of the
Indenture Trustee who customarily performs functions similar to those performed by the persons who
at the time shall be such officers, respectively, or to whom any corporate trust matter is referred
because of such person’s knowledge of and familiarity with the particular subject and who shall
have direct responsibility for the administration of the Indenture, (b) with respect to the Owner
Trustee, any officer within the Corporate Trust Administration of the Owner Trustee and having
direct responsibility for the administration of the Issuer, including any Vice President, Assistant
Vice President, Assistant Treasurer, Assistant Secretary, Finances Services Officer or any other
officer customarily performing functions similar to those performed by any of the above designated
officers and also, with respect to a particular matter, any other officer to whom such matter is referred because of such officer’s knowledge of and
familiarity with the particular subject, (c) with respect to the Master Servicer or Seller, any
officer of such Person having direct responsibility for the transactions contemplated by the
Transaction Documents, including the President, Treasurer or Secretary or any Vice President,
Assistant Vice President, Assistant Treasurer, Assistant Secretary, or any other officer
customarily performing functions similar to those performed by any of the above designated officers
and also, with respect to a particular matter, any other officer to whom such matter is referred
because of such officer’s knowledge of and familiarity with the particular subject and (d) with
respect to the Receivables Servicer, any officer of the Receivables Servicer having direct
responsibility for the transactions contemplated by the Transaction Documents, including the
President, Treasurer or Secretary or any Vice President, Assistant Vice President, Assistant
Treasurer, Assistant Secretary, or any other officer customarily performing functions similar to
those performed by any of the above designated officers and also, with respect to a particular
matter, any other officer to whom such matter is referred because of such officer’s knowledge of
and familiarity with the particular subject.

     “Sale Agreement” means the Sale Agreement, dated as of the Closing Date, among the Seller and
the Issuer, as the same may be amended, modified or supplemented from time to time.

     “Sarbanes-Oxley Act” means the Sarbanes-Oxley Act of 2002, as amended, modified or
supplemented from time to time, and any successor law thereto.

     “Schedule of Receivables” means, as the context may require, (i) the schedule of Transferred
Receivables, transferred to the Issuer on the Closing Date or (ii) collectively, the schedule of
all Receivables assigned to the Issuer by the Seller as of the date of determination, with such
additions and deletions as properly made pursuant to the Transaction Documents.

     “Second Allocation of Principal” means, with respect to any specified Payment Date, an amount
equal to the excess, if any, of (a)(i) the Note Balance of Class A Notes and the Class B Notes as
of such Payment Date (before giving effect to any principal payments made on the Notes on such
Payment Date) minus (ii) the First Allocation of Principal for such Payment Date over (b)(i)the
Pool Balance as of the end of the related Collection Period minus (ii) the sum of the YSOC Amount
for such Payment Date and the Targeted Overcollateralization Amount; provided, however, that the
Second Allocation of Principal shall not exceed the sum of the Class A and Class B Note Balance
(before giving effect to any principal payments on the notes on such

					
	 	 	 	 	 
	 
	 	 
	 	Definitions (2006-G1)

21

 

Payment Date) minus the First
Allocation of Principal for such Payment Date; provided, further, that the Second Allocation of
Principal on and after the Final Scheduled Payment Date for the Class B Notes shall not be less
than the amount that is necessary to reduce the outstanding principal amount of the Class B Notes
to zero (after the application of the First Allocation of Principal).

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

     “Seller” means BAS Securitization LLC, a Delaware limited liability company, and its
successors and assigns.

     “Seller Certification” means the certification in the form attached as Exhibit B to
the Indenture.

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

     “Servicing Fee” means, for any Payment Date, the product of (A) one twelfth (or, in the case
of the first Payment Date, a fraction, the numerator of which is the number of days (assuming 30
day months) from and including the Cut-Off Date to and including the last day of the first
Collection Period and the denominator of which is 360), (B) the Servicing Fee Rate and (C) the Pool
Balance as of the first day of the related Collection Period (or, in the case of the first Payment
Date, as of the Cut-Off Date).

     “Servicing Fee Rate” means 1.01% per annum.

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

     “Statutory Trust Act” means Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code § 3801
et seq.

     “Supplemental Servicing Fees” means any late fees, prepayment charges, extension fees and
other administrative fees and expenses or similar charges allowed by applicable law collected (from
whatever source) on the Receivables during each Collection Period permitted to be retained by the
Master Servicer pursuant to Section 3.10(b) of the Master Servicing Agreement.

     “Targeted Overcollateralization Amount” means, for any Payment Date, the greater of (i) (x)
1.35% of (y) the Pool Balance minus the YSOC Amount for the related Payment Date and (ii) (x) 0.50%
of (y) the Pool Balance minus the YSOC Amount as of the Cut-Off Date.

     “Termination Date” means February 19, 2013.

     “TIA” or “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended and as in
force on the date hereof, unless otherwise specifically provided.

					
	 	 	 	 	 
	 
	 	 
	 	Definitions (2006-G1)

22

 

     “Transaction Documents” means the Indenture, the Notes, the Note Depository Agreement, the
Sale Agreement, the Master Servicing Agreement, the Receivables Servicing Agreement, the Purchase
Agreement, and the Trust Agreement, as the same may be amended or modified from time to time.

     “Transferred Assets” means (a) the Purchased Assets, (b) all of the Seller’s rights under the
Purchase Agreement and (c) all proceeds of the foregoing.

     “Transferred Receivables” means the Receivables transferred by the Seller to the Issuer on the
Closing Date.

     “Trust Accounts” has the meaning set forth in Section 8.2(a)(ii) of the Indenture.

     “Trust Account Property” means the Trust Accounts, all amounts and investments held from time
to time in any Trust Account (whether in the form of deposit accounts, Physical
Property, book-entry securities, uncertificated securities or otherwise), and all proceeds of
the foregoing.

     “Trust Agreement” means the Trust Agreement, dated as of October 4, 2006, as amended and
restated by the Amended and Restated Trust Agreement dated as of the Closing Date, between the
Seller and the Owner Trustee, as the same may be amended and supplemented from time to time.

     “Trust Estate” means all money, accounts, chattel paper, general intangibles, goods,
instruments, investment property and other property of the Issuer, including without limitation (i)
the Transferred Assets, (ii) the rights of the Issuer to the funds on deposit from time to time in
the Trust Accounts and any other account or accounts established pursuant to the Indenture and all
cash, investment property and other property from time to time credited thereto and all proceeds
thereof (including investment earnings, net of losses and investment expenses, on amounts on
deposit therein), (iii) all of the Issuer’s rights under the Sale Agreement and (iv) all proceeds
of the foregoing.

     “UCC” means, unless the context otherwise requires, the Uniform Commercial Code as in effect
in the relevant jurisdiction, as amended from time to time.

     “Underwriting Agreement” means the Underwriting Agreement dated November 3, 2006 among Banc of
America Securities LLC, as representatives on the underwriters named therein, the Seller and BANA.

     “United States” or “USA” means the United States of America (including all states, the
District of Columbia and political subdivisions thereof).

     “Warranty Receivable” means a Receivable which CARI has repurchased pursuant to Section
6.2 of the CARI Purchase Agreement, which GMAC has repurchased pursuant to Section 6.2
of the GMAC Sale Agreement, which the Seller has repurchased pursuant to Section 2.3 of the
Sale Agreement or which BANA has repurchased pursuant to Section 3.3 of the Purchase
Agreement.

					
	 	 	 	 	 
	 
	 	 
	 	Definitions (2006-G1)

23

 

     “YSOC Amount” means, with respect to any Collection Period and the related Payment Date, the
aggregate amount by which the Amount Financed as of the last day of such Collection Period of each
Discount Receivable (other than a Discount Receivable that is a Defaulted Receivable or a
Repurchased Receivable), exceeds the present value (calculated at the Required Rate) of each
scheduled payment of each such Discount Receivable assuming such scheduled payment is made on the
last day of each month and each month has 30 days.

     The foregoing definitions shall be equally applicable to both the singular and plural forms of
the defined terms. Unless otherwise inconsistent with the terms of this Agreement, all accounting
terms used herein shall be interpreted, and all accounting determinations hereunder shall be made,
in accordance with GAAP. Amounts to be calculated hereunder shall be continuously recalculated at
the time any information relevant to such calculation changes.

					
	 	 	 	 	 
	 
	 	 
	 	Definitions (2006-G1)

24exv10w3

 

Exhibit 10.3

MASTER SERVICING AGREEMENT

among

BANK OF AMERICA, NATIONAL ASSOCIATION,

as Master Servicer and Custodian,

BANC OF AMERICA SECURITIES AUTO TRUST 2006-G1,

as Issuer

and

U.S. BANK NATIONAL ASSOCIATION,

as Indenture Trustee

Dated as of November 14, 2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	ARTICLE I DEFINITIONS AND USAGE	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 1.1.
	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE II MASTER SERVICER AS CUSTODIAN	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 2.1.
	 	Custody of Receivable Files
	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 2.2.
	 	Effective Period, Termination, and Amendment; Interpretive and
Additional Provisions
	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE III ADMINISTRATION AND SERVICING OF RECEIVABLES AND PURCHASED PROPERTY	 	 	3	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 3.1.
	 	Duties of Master Servicer
	 	 	3	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 3.2.
	 	Collection of Receivable Payments
	 	 	4	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 3.3.
	 	Realization Upon Receivables
	 	 	4	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 3.4.
	 	Allocations of Collections
	 	 	4	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 3.5.
	 	Maintenance of Security Interests in Financed Vehicles
	 	 	5	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 3.6.
	 	Maintenance of Insurance Policies
	 	 	5	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 3.7.
	 	Covenants of Master Servicer
	 	 	5	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 3.8.
	 	Repurchase of Receivables Upon Breach by the Master Servicer
	 	 	5	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 3.9.
	 	[Reserved]
	 	 	6	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 3.10.
	 	Servicing Fee and Supplemental Servicing Fee Payable to the Master
Servicer
	 	 	6	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 3.11.
	 	Annual Statement as to Compliance; Notice of Master Servicer
Termination Event
	 	 	6	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 3.12.
	 	Annual Report of Assessment of Compliance with Servicing Criteria 	 	 	7	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 3.13.
	 	Master Servicer Expenses
	 	 	7	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IV DISTRIBUTIONS; STATEMENTS	 	 	7	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 4.1.
	 	Establishment of Initial Account; Deposits into Collection Account	 	 	7	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 4.2.
	 	Net Remittances; Retention of Servicing Fees
	 	 	8	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 4.3.
	 	Statements to Issuer
	 	 	9	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE V THE MASTER SERVICER	 	 	9	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 5.1.
	 	Representations of Master Servicer
	 	 	9	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 5.2.
	 	Indemnities of Master Servicer
	 	 	10	 

i

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 

	 	Section 5.3.
	 	Merger or Consolidation of, or Assumption of the Obligations of, Master
Servicer
	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 5.4.
	 	Limitation on Liability of Master Servicer and Others
	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 5.5.
	 	Subservicer and Delegation of Duties
	 	 	12	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 5.6.
	 	Master Servicer Not to Resign as Master Servicer; Resignation and
Termination of Receivables Servicer
	 	 	12	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 5.7.
	 	Master Servicer May Own Notes or Certificates
	 	 	12	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VI SERVICING TERMINATION	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 6.1.
	 	Master Servicer Termination Events
	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 6.2.
	 	Appointment of Successor Master Servicer
	 	 	14	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 6.3.
	 	Notification to Noteholders and Certificateholders
	 	 	15	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 6.4.
	 	Waiver of Past Master Servicer Termination Events
	 	 	15	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 6.5.
	 	Termination
	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 6.6.
	 	Optional Purchase of All Receivables
	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 6.7.
	 	Enforcement of Receivable Servicer’s Obligations
	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VII MISCELLANEOUS PROVISIONS	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 7.1.
	 	Amendment
	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 7.2.
	 	Counterparts
	 	 	20	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 7.3.
	 	GOVERNING LAW
	 	 	20	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 7.4.
	 	Submission to Jurisdiction; Waiver of Jury Trial
	 	 	20	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 7.5.
	 	Headings and Cross-References
	 	 	20	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 7.6.
	 	Notices
	 	 	21	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 7.7.
	 	Severability of Provisions
	 	 	21	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 7.8.
	 	Further Assurances
	 	 	21	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 7.9.
	 	Waivers
	 	 	21	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 7.10.
	 	Cumulative Remedies
	 	 	21	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 7.11.
	 	Third-Party Beneficiaries
	 	 	21	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 7.12.
	 	Nonpetition Covenant
	 	 	21	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 7.13.
	 	Limitation of Liability
	 	 	22	 
	 
	 	 	 	 	 	 	 	 
	EXHIBIT A FORM OF MONTHLY SERVICER REPORT	 	 	 	 
	EXHIBIT B SERVICING CRITERIA	 	 	 	 

ii

 

     This MASTER SERVICING AGREEMENT, (as from time to time amended, supplemented or otherwise
modified and in effect, this “Agreement”), is made as of November 14, 2006, among Bank of
America, National Association, a national banking association (“BANA”), as master servicer
(in such capacity, the “Master Servicer”), and as custodian (in such capacity, the
“Custodian”), Banc of America Securities Auto Trust 2006-G1, a Delaware statutory trust, as
issuer (the “Issuer”) and U.S. Bank National Association, a national banking association,
as indenture trustee (the “Indenture Trustee” and together with the Master Servicer, the
Custodian and the Issuer, the “Parties” and each a “Party”).

     1. The Issuer purchased a specified portfolio of receivables consisting of automobile and
light truck retail installment sale contracts and direct purchase money loans and related property
from BAS Securitization LLC, a Delaware limited liability company (the “Seller”).

     2. The Master Servicer is willing to service, on behalf of the Issuer, the Issuer’s specified
portfolio of receivables.

     3. For administrative convenience, the Master Servicer is willing to act as the custodian, on
behalf of the Issuer, of the Issuer’s specified portfolio of receivables and related property.

     In consideration of the foregoing, other good and valuable consideration, and the mutual terms
and covenants contained herein, the Parties hereto agree as follows:

ARTICLE I

DEFINITIONS AND USAGE

     Section 1.1. Definitions. Certain capitalized terms used in the above recitals and in
this Agreement are defined in and shall have the respective meanings assigned to them in Appendix A
to the Sale Agreement, dated as of the Closing Date, between the Seller and the Issuer. All
references herein to “the Agreement” or “this Agreement” are to this Master
Servicing Agreement as it may be amended, supplemented or modified from time to time, the exhibits
and attachments hereto and the capitalized terms used herein which are defined in such Appendix
A, and all references herein to Articles, Sections and subsections are to Articles, Sections or
subsections of this Agreement unless otherwise specified. The rules of construction and usage set
forth in such Appendix A shall be applicable to this Agreement.

ARTICLE II

MASTER SERVICER AS CUSTODIAN

     Section 2.1. Custody of Receivable Files. To assure uniform quality in servicing the
Receivables and to reduce administrative costs, the Issuer, upon the execution and delivery of this
Agreement, hereby revocably appoints the Custodian, and the Custodian hereby accepts such
appointment, to act as the agent of the Issuer 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 Issuer pursuant to the Indenture (collectively, the “Receivable
Files”) with respect to each Receivable:

 

 

          (a) the fully executed original of the installment sale contract or the promissory note and
security agreement, as applicable, for such Receivable;

          (b) documents evidencing or related to any Insurance Policy;

          (c) the original credit application of each Obligor, fully executed by each such Obligor;

          (d) where permitted by law, the original Certificate of Title (when received) and otherwise
such documents, if any, that the Master Servicer or the Receivables Servicer keeps on file in
accordance with its Customary Servicing Practices indicating that the Financed Vehicle is owned by
the Obligor and, subject to the interest of GMAC, as first lienholder or secured party; and

          (e) any and all other documents that the Master Servicer or the Receivables Servicer keeps on
file in accordance with its Customary Servicing Practices relating to the individual Receivable,
Obligor or Financed Vehicle.

     The Master Servicer shall be permitted to appoint (and has appointed) the Receivables Servicer
to hold the documents and instruments relating to the Receivables for the benefit of the Issuer and
the Indenture Trustee. The Issuer and the Indenture Trustee shall have no responsibility to
monitor the Master Servicer’s (or the Receivables Servicer’s) performance as custodian and shall
have no liability in connection with the Master Servicer’s (or the Receivables Servicer’s)
performance of such duties hereunder.

     The Receivables Servicer has acknowledged pursuant to the Receivables Servicing Agreement
receipt of the Receivable Files for each Receivable listed on the Schedule of Receivables.

     Section 2.2. Effective Period, Termination, and Amendment; Interpretive and Additional
Provisions. The Master Servicer’s appointment as Custodian will become effective as of the
Cut-Off Date and will continue in full force and effect until terminated as herein provided. The
appointment of the Master Servicer as Custodian may be terminated by the Master Servicer by written
notice to the Issuer and the Indenture Trustee, such termination to take effect no sooner than
sixty (60) days after the date of such notice. Notwithstanding the foregoing, if BANA resigns as
Master Servicer in accordance with the provisions of this Agreement or if all of the rights and
obligations of the Master Servicer are terminated under Section 6.2, the appointment of the
Master Servicer as Custodian hereunder will be terminated. As soon as practicable after any
termination under this Section 2.2, unless the Receivables Servicer is holding the
documents and instruments relating to the Receivables for the benefit of the Issuer and Indenture
Trustee, the Custodian will deliver to the Indenture Trustee or the Indenture Trustee’s designee,
the Receivable Files and the related accounts and Records maintained by the Custodian at such place
or places as the Indenture Trustee may reasonably designate.

2

 

ARTICLE III

ADMINISTRATION AND SERVICING OF

RECEIVABLES AND PURCHASED PROPERTY

     Section 3.1. Duties of Master Servicer. Effective as of the Cut-Off Date, the Master
Servicer is hereby appointed and authorized to act as agent for the Issuer and in such capacity
shall (or shall require the Receivables Servicer to) manage, service, administer and make
collections on the Receivables with reasonable care, using that degree of skill and attention that
the Master Servicer exercises with respect to comparable automotive receivables that it (or the
Receivables Servicer) services for itself or others. The Master Servicer hereby accepts such
appointment and authorization and agrees to perform the duties of Master Servicer set forth herein.
The Master Servicer’s duties (which have been delegated in whole or in part to the Receivables
Servicer) shall include collection and posting of all payments, responding to inquiries of
Obligors, investigating delinquencies, sending payment coupons to Obligors, reporting tax
information to Obligors, policing the collateral and accounting for collections. Subject to the
provisions of Section 3.2, the Master Servicer shall follow its Customary Servicing
Practices (or the Receivables Servicer will follow the standards of the Receivables Servicer set
forth in the Receivables Servicing Agreement) and shall have full power and authority, acting
alone, to do any and all things in connection with such managing, servicing, administration and
collection that it may deem necessary or desirable. Without limiting the generality of the
foregoing, the Master Servicer is hereby (and the Receivables Servicer pursuant to the Receivables
Servicing Agreement is thereby) authorized and empowered, pursuant to this Section 3.1, to
execute and deliver, on behalf of itself or the Issuer, the Owner Trustee, the Indenture Trustee,
the Noteholders, the Certificateholder, or any of them, any and all instruments of satisfaction or
cancellation, or of partial or full release or discharge, and all other comparable instruments,
with respect to the Receivables and the Financed Vehicles. The Master Servicer is hereby (and the
Receivables Servicer pursuant to the Receivables Servicing Agreement is thereby) authorized to
commence, in its own name or in the name of the Issuer a legal Proceeding to enforce a Defaulted
Receivable as contemplated by Section 3.3, to enforce all obligations or participate in a
legal Proceeding (including without limitation a bankruptcy Proceeding) relating to or involving a
Receivable or a Defaulted Receivable. If the Master Servicer (or the Receivables Servicer)
commences or participates in such a legal Proceeding in its own name, the Master Servicer is hereby
(and the Receivables Servicer pursuant to the Receivables Servicing Agreement is thereby)
authorized and empowered by the Issuer pursuant to this Section 3.1, to obtain possession
of the related Financed Vehicle and immediately and without further action on the part of the
Issuer or the Master Servicer (or the Receivables Servicer), the Issuer shall thereupon
automatically assign in trust such Receivable and the security interest in the related Financed
Vehicle to the Master Servicer (or the Receivables Servicer) for the benefit of the Issuer for
purposes of commencing or participating in any such Proceeding as a party or claimant. Upon such
automatic assignment, the Master Servicer (or the Receivables Servicer) will be, and will have all
the rights and duties of, a secured party under the UCC and other applicable law with respect to
such Receivable and the related Financed Vehicle. At the Master Servicer’s request from time to
time, the Issuer shall provide the Master Servicer with evidence of the assignment in trust for the
benefit of the Issuer, as applicable, as may be reasonably necessary for the Master Servicer (or
the Receivables Servicer’s) to take any of the actions set forth in the following sentence. The
Master Servicer is hereby (and the Receivables

3

 

Servicer pursuant to the Receivables Servicing Agreement is thereby) authorized and empowered
by the Issuer and the Indenture Trustee to execute and deliver in the Master Servicer’s (or the
Receivables Servicer’s) name any notices, demands, claims, complaints, responses, affidavits or
other documents or instruments in connection with any such Proceeding. The Issuer shall furnish
the Master Servicer (or the Receivables Servicer) with any powers of attorney and other documents
and take any other steps which the Master Servicer (or the Receivables Servicer) may deem necessary
or appropriate to enable the Master Servicer to carry out its duties herein or the Receivables
Servicer to carry out its duties under the Receivables Servicing Agreement. Except to the extent
required by the preceding two sentences, the authority and rights granted to the Master Servicer
and the Receivables Servicer in this Section 3.1 shall be nonexclusive and shall not be
construed to be in derogation of the retention by the Issuer or the Indenture Trustee of equivalent
authority and rights.

     Section 3.2. Collection of Receivable Payments. The Master Servicer will make (or
shall require the Receivables Servicer to make) reasonable efforts to collect all payments called
for under the terms and provisions of the Receivables as and when the same become due and will
follow such collection procedures as it follows with respect to all comparable automotive
receivables that it services for itself and others in connection therewith. Except as provided in
Section 3.7(c), each of the Master Servicer and the Receivables Servicer is hereby
authorized to grant extensions, rebates, or adjustments on a Receivable without the prior consent
of the Issuer. Each of the Master Servicer and the Receivables Servicer is authorized in its
discretion to waive any late payment charge or any other fees that may be collected in the ordinary
course of servicing a Receivable.

     Section 3.3. Realization Upon Receivables. The Master Servicer shall (or shall
require the Receivables Servicer to) use reasonable efforts, consistent with its (or the
Receivables Servicer’s) Customary Servicing Practices, to repossess or otherwise convert the
ownership of the Financed Vehicle that it has reasonably determined should be repossessed or
otherwise converted following a default under the Receivable secured by the Financed Vehicle and to
promptly liquidate such Financed Vehicle. Each of the Master Servicer and the Receivables Servicer
is authorized to follow such Customary Servicing Practices as it follows in its servicing of
comparable receivables, which practices, policies and procedures may include selling the Financed
Vehicle at public or private sale and other actions by the Master Servicer (or the Receivables
Servicer) in order to realize upon such a Receivable. The foregoing is subject to the provision
that, in any case in which the Financed Vehicle shall have suffered damage, the Master Servicer
shall not (nor shall the Receivables Servicer) expend funds in connection with any repair or
towards the repossession of such Financed Vehicle unless it shall determine in its discretion that
such repair and/or repossession shall increase the proceeds of liquidation of the related
Receivable by an amount greater than the amount of such expenses. The Master Servicer (and the
Receivables Servicer) shall be entitled to receive Liquidation Expenses with respect to each
Defaulted Receivable at such time as the Receivable becomes a Defaulted Receivable.

     Section 3.4. Allocations of Collections. If an Obligor is obligated under one or more
Receivables and also under one or more other assets owned by the Issuer or a third party, then any
payment on any such asset received from or on behalf of such Obligor will, if identified as being
made with respect to a particular item or asset, be applied to such item, and otherwise will

4

 

be allocated by the Master Servicer or the Receivables Servicer in accordance with its
Customary Servicing Practices.

     Section 3.5. Maintenance of Security Interests in Financed Vehicles. The Master
Servicer shall (or shall require the Receivables Servicer to), in accordance with its Customary
Servicing Practices and at its own expense, take such steps as are necessary to maintain perfection
of the security interest created by each Receivable in the related Financed Vehicle. The Issuer
hereby authorizes the Master Servicer (or the Receivables Servicer) to re-perfect such security
interest on behalf of the Issuer and the Indenture Trustee, as necessary because of the relocation
of a Financed Vehicle, or for any other reason.

     Section 3.6. Maintenance of Insurance Policies.

     The Master Servicer shall (or shall require the Receivables Servicer to), in accordance with
its Customary Servicing Practices, require that each Obligor shall have obtained physical damage
insurance covering the Financed Vehicle as of the execution of the related Receivable.

     Section 3.7. Covenants of Master Servicer. The Master Servicer covenants that from
and after the closing hereunder:

     (a) Liens in Force. Except as contemplated in the Transaction Documents, the Master
Servicer shall not (and shall require the Receivables Servicer not to) release in whole or in part
any Financed Vehicle from the security interest securing the related Receivable;

     (b) No Impairment. The Master Servicer shall not (and shall require the Receivables
Servicer not to) do anything to impair the rights of the Issuer in and to the Receivables; and

     (c) No Modifications. The Master Servicer shall not (and shall require the
Receivables Servicer not to) amend or otherwise modify any Receivable such that the Amount
Financed, the Annual Percentage Rate or the number of originally scheduled due dates, is altered or
such that the last scheduled due date occurs after the Termination Date.

     Section 3.8. Repurchase of Receivables Upon Breach by the Master Servicer. Upon
discovery by any Party to this Agreement of a breach of any of the covenants set forth in
Sections 3.5 that materially and adversely affects the interest of the Issuer in any
Receivable, the Party discovering such breach shall give prompt written notice thereof to the
other. As of the last day of the second Collection Period following its discovery or receiving
notice of such breach (or, at the Master Servicer’s election, the last day of the first Collection
Period so following), the Master Servicer shall (or shall require the Receivables Servicer to),
unless it shall have cured such breach in all material respects, purchase from the Issuer any
Receivable materially and adversely affected by such breach and no later than the related Payment
Date, the Master Servicer shall pay (or cause to be paid) the Repurchase Price. It is understood
and agreed that the obligation of the Master Servicer to purchase (or to require the Receivables
Servicer to purchase) any Receivable with respect to which such a breach has occurred and is
continuing shall, if such obligation is fulfilled, constitute the sole remedy (except as provided
in Section 5.2 of this Agreement) against the Master Servicer for such breach available to
the Issuer.

5

 

     Upon receipt of the Repurchase Price, the Issuer shall assign (without recourse,
representation or warranty) to or at the direction of the Master Servicer, all of the Issuer’s
right, title and interest in, to and under such Administrative Receivable, all monies due thereon,
the security interests in the related Financed Vehicle, proceeds from any Insurance Policies and
the interests in certain rebates of premiums and other amounts relating to the Insurance Policies
and any document relating thereto, such assignment being an assignment outright and not for
security; and the Master Servicer (or its designee), shall thereupon own such Receivable, and all
such security and documents, free of any further obligations to the Issuer with respect thereto.

     Section 3.9. [Reserved].

     Section 3.10. Servicing Fee and Supplemental Servicing Fee Payable to the Master
Servicer. (a) Servicing Fee. To compensate the Master Servicer for services rendered
under this Agreement, the Issuer will pay the Master Servicer the Servicing Fee from the Cut-Off
Date until the earliest to occur of:

     (i) resignation of the Master Servicer pursuant to Section 5.6;

     (ii) termination of the Master Servicer pursuant to Section 6.2; or

     (iii) the Termination Date.

     Such Servicing Fee will be payable by the Issuer on each Payment Date following the Cut-Off
Date until the Termination Date in accordance with Sections 5.4(b) and 8.4(a) of
the Indenture.

     (b) Supplemental Servicing Fee. In addition to the Servicing Fee, and as additional
compensation for its services rendered under this Agreement, the Master Servicer will be entitled
to retain any late fees, prepayment charges, extension fees and other administrative fees and
expenses or similar charges allowed by applicable law collected (from whatever source) on the
Receivables during each Collection Period (such amounts, the “Supplemental Servicing Fee”).

     Section 3.11. Annual Statement as to Compliance; Notice of Master Servicer Termination
Event. (a) The Master Servicer will deliver to the Issuer, with a copy to the Indenture
Trustee, on or before March 20 of each year beginning March 20, 2007, an Officer’s Certificate,
dated as of December 31 of the immediately preceding year, stating that:

     (i) a review of the activities of the Master Servicer during the preceding 12-month period
(or, with respect to the first such certificate, such period as shall have elapsed from the Cut-Off
Date to the date of such certificate) and of its performance under the Transaction Documents has
been made under such officer’s supervision; and

     (ii) to such officer’s knowledge, based on such review, the Master Servicer has fulfilled all
its obligations under the Transaction Documents throughout such period, or, if there has been a
default in the fulfillment of any such obligation, specifying each such default known to such
officer and the nature and status thereof.

6

 

     (b) The Master Servicer shall deliver to the Issuer on or before March 20 of each year,
beginning on March 20, 2007, a report regarding the Master Servicer’s assessment of compliance
within the Servicing Criteria during the immediately preceding calendar year, as required under
Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB.

     (c) The Master Servicer will deliver to the Issuer promptly after having obtained knowledge
thereof, notice of the occurrence of any Master Servicer Termination Event.

     Section 3.12. Annual Report of Assessment of Compliance with Servicing Criteria. The
Master Servicer shall cause a firm of independent certified public accountants, who may also render
other services to the Master Servicer, to deliver to the Issuer on or before March 20 of each year,
beginning March 20, 2007, a report (the “Report of Assessment of Compliance with Servicing
Criteria”) delivered to the Board of Directors of the Master Servicer that would satisfy the
requirements of Rule 13a-18 or Rule 15d-18 under the Exchange Act and Item 1122 of Regulation AB,
as applicable, on the assessment of compliance with the applicable Servicing Criteria listed on
Exhibit B hereto with respect to the prior calendar year (and the Issuer shall deliver a
copy of such report to the Indenture Trustee promptly upon receipt, but no later than March 20 of
each year, beginning March 20, 2007); provided, however, that the Master Servicer shall not be
required to deliver a Report of Assessment of Compliance with Servicing Criteria with respect to
any year for which the Issuer is not filing an annual report on Form 10-K pursuant to the Exchange
Act.

     Section 3.13. Master Servicer Expenses. Subject to any limitations on the Master
Servicer’s liability herein, the Master Servicer will be required to pay all expenses incurred by
it in connection with its activities hereunder, including fees, expenses and disbursements of any
independent accountants and taxes imposed on the Master Servicer.

ARTICLE IV

DISTRIBUTIONS; STATEMENTS

     Section 4.1. Establishment of Initial Account; Deposits into Collection Account.

     (a) Prior to the Closing Date, there shall have been established an Eligible Account to which
the Master Servicer shall cause the Receivables Servicer to agree to deposit Collections on the
Receivables, as more specifically described in the Receivables Servicing Agreement (such account,
the “Initial Account”). The Initial Account was established and shall initially be
maintained with an Eligible Institution. No checks shall be issued, printed or honored with
respect to the Initial Account. All monies owned by the Issuer on deposit from time to time in the
Initial Account shall be held by the Eligible Institution. To the extent the Receivables Servicer
deposits monies into the Initial Account that do not constitute Collections on the Receivables, or
are not otherwise owned by the Issuer, then the Master Servicer may direct the Indenture Trustee to
transfer such funds to such account as the Master Servicer may direct from time to time, and such
monies shall not be deposited into the Collection Account.

     (b) If the Monthly Remittance Condition is satisfied with respect to the Master Servicer, then
on the Business Day prior to each Payment Date, the Indenture Trustee is hereby

7

 

instructed to withdraw from such account for deposit into the Collection Account an amount
equal to all Collections deposited into the Initial Account during the related Collection Period;
provided, however, that such withdraw may be made net of Servicing Fees and unpaid Servicing Fees
in accordance with Section 4.2(b). Additionally, on each Payment Date, the Indenture
Trustee is hereby instructed to withdraw from the Initial Account for deposit into the Collection
Account an amount equal to all Liquidation Proceeds and all Collections, in each case for the
related Collection Period, if any, deposited into the Initial Account on such Payment Date.

     Prior to such withdrawal by the Indenture Trustee, the Master Servicer may direct the Eligible
Institution at which the Initial Account is established to invest the funds on deposit in the
Initial Account in investments that mature not later than the Business Day immediately prior to the
Payment Date for the Collection Period to which such amounts relate and such investments shall be
held to maturity. However, so long as the Monthly Remittance Condition is satisfied with respect
to the Master Servicer, funds in the Initial Account may be invested in any investment selected by
the Master Servicer so long as such investment meets the maturity criteria described above and need
not be invested in Permitted Investments; provided, however, that the Master Servicer shall
promptly (and no later than the Business Day prior to the Payment Date) deposit into the Initial
Account an amount equal to any resulting net investment loss (taking into account gains and losses)
for the related Collection Period. Any resulting net investment gains (taking into account gains
and losses) for any Collection Period shall be distributed by the Indenture Trustee to (or at the
direction of) the Master Servicer as additional servicing compensation. Subject to Section
6.1(c) of the Indenture, the Indenture Trustee shall not in any way be held liable by reason of
any insufficiency in the Initial Account resulting from any loss on any investment included
therein, except for losses attributable to the Indenture Trustee’s failure to make payments on any
such investments issued by the Indenture Trustee in its commercial capacity as principal obligor
and not as trustee, in accordance with their terms.

     (c) If the Monthly Remittance Condition is not satisfied with respect to the Master Servicer,
then the Indenture Trustee is hereby instructed to withdraw on each Business Day from the Initial
Account for deposit into the Collection Account all Collections on deposit in the Initial Account.
For the avoidance of doubt, if the Monthly Remittance Condition is not satisfied then funds on
deposit in the Initial Account will be withdrawn on each Business Day and deposited into the
Collection Account, and therefore such funds will remain uninvested.

     (d) The Master Servicer shall not be liable for any failure by the Receivables Servicer to
deposit Collections into the Initial Account in accordance with the requirements of the Receivables
Servicing Agreement.

     (e) Notwithstanding the foregoing, the Master Servicer may elect to direct the Receivables
Servicer to deposit Collections directly to the Collection Account, rather than to the Initial
Account.

     Section 4.2. Net Remittances; Retention of Servicing Fees.

     (a) Supplemental Servicing Fees may be retained by the Master Servicer or the Receivables
Servicer, and need not be deposited into the Initial Account or the Collection Account.

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     (b) Upon notice by the Master Servicer to the Indenture Trustee in writing, the amounts
deposited in the Initial Account may be net of the Servicing Fee and any unpaid Servicing Fee owed
to the Master Servicer; provided, however, that such amounts will be listed separately on the
Monthly Servicer Report as if such amounts were distributed to the Master Servicer separately. If
only amounts net of Servicing Fees and unpaid Servicing Fees are deposited into the Initial
Account, then the Indenture Trustee will make the withdrawal specified in the first sentence of
Section 4.1(b) net of Servicing Fees and unpaid Servicing Fees.

     Section 4.3. Statements to Issuer. On or before the 10th calendar day of each month,
or if the 10th calendar day is not a Business Day, the next succeeding Business Day, commencing on
December 11, 2006 the Master Servicer will deliver (or shall require the Receivables Servicer to
deliver) to the Issuer and the Indenture Trustee with respect to all of the Receivables on an
aggregate basis a monthly servicer report substantially in the form attached hereto as Exhibit
A (each, a “Monthly Servicer Report”) and a monthly data file (setting forth
account-level data identified by account number) as will be mutually agreed to by the Master
Servicer and the Indenture Trustee (the “Monthly Data File”), each in electronic form. The
Indenture Trustee shall not be responsible for verifying or confirming the accuracy of the
information provided to it by or at the direction of the Master Servicer.

ARTICLE V

THE MASTER SERVICER

     Section 5.1. Representations of Master Servicer. The Master Servicer makes the
following representations as of the Cut-Off Date and as of the Closing Date:

     (a) Existence and Power. The Master Servicer is a national banking association
validly existing and in good standing under the laws of the United States and has, in all material
respects, full power and authority to own its assets and operate its business as presently owned or
operated, and to execute, deliver and perform its obligations under the Transaction Documents to
which it is a party or affect the enforceability or collectibility of the Receivables or any other
part of the Purchased Assets. The Master Servicer has obtained all necessary licenses and
approvals in each jurisdiction where the failure to do so would materially and adversely affect the
ability of the Master Servicer to perform its obligations under the Transaction Documents or affect
the enforceability or collectibility of the Receivables or any other part of the Purchased Assets.

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

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

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

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

     Section 5.2. Indemnities of Master Servicer. The Master Servicer shall be liable in
accordance with this Agreement only to the extent of the obligations in this Agreement specifically
undertaken by the Master Servicer. Such obligations shall include the following:

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

     (b) Indemnification under this Section 5.2 by Master Servicer (or any successor
thereto pursuant to Sections 5.3 and 5.6 as Master Servicer, with respect to the
period such Person was the Master Servicer, shall survive the termination of such Person as Master
Servicer or a resignation by such Person as Master Servicer as well as the termination of this
Agreement or the resignation or removal of the Owner Trustee or the Indenture Trustee and shall
include reasonable fees and expenses of counsel and expenses of litigation. If the Master Servicer
shall have made any indemnity payments pursuant to this Section 5.2 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 Master Servicer, without interest.

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     Section 5.3. Merger or Consolidation of, or Assumption of the Obligations of, Master
Servicer. Any corporation or other entity (a) into which the Master Servicer may be merged or
consolidated, (b) resulting from any merger, conversion or consolidation to which the Master
Servicer shall be a party, (c) succeeding to the business of the Master Servicer, or (d) more than
50% of the voting stock (or, if not a corporation, other voting interests) of which is owned
directly or indirectly by BAC, which corporation or other entity in any of the foregoing cases
executes an agreement of assumption to perform every obligation of the Master Servicer under the
Transaction Documents, shall be the successor to the Master Servicer under the Transaction
Documents without the execution or filing of any paper or any further act on the part of any of the
Parties to this Agreement, anything in the Transaction Documents to the contrary notwithstanding.
The Master Servicer shall provide notice of any merger, consolidation or succession pursuant to
this Section 5.3 to the Issuer and the Indenture Trustee.

     Section 5.4. Limitation on Liability of Master Servicer and Others. (a) None of the
Master Servicer, the Custodian or any of the directors, officers, employees or agents of the Master
Servicer or the Custodian shall be under any liability to the Indenture Trustee or the Noteholders
for any action taken or for refraining from the taking of any action in good faith pursuant to this
Agreement, or for errors in judgment; provided, however, that this provision shall not protect the
Master Servicer, the Custodian or any such person against any liability that would otherwise be
imposed by reason of willful misfeasance, bad faith or gross negligence in its performance of its
duties or by reason of reckless disregard for its obligations and duties under this Agreement.
Without limiting the foregoing, neither the Master Servicer nor the Custodian shall be responsible
with respect to any duties that it delegates to sub-contractors or subservicers (including the
Receivables Servicer) and neither will be obligated or liable to the Issuer and the Indenture
Trustee for the conduct or misconduct of such sub-contractors or subservicers (including the
Receivables Servicer) selected by the Master Servicer or the Custodian with reasonable care. The
Master Servicer, the Custodian and any director, officer, employee or agent of the Master Servicer
or the Custodian may rely in good faith on any document of any kind prima facie properly executed
and submitted by any Person respecting any matters arising hereunder. Neither the Master Servicer
nor the Custodian shall be liable for any acts or omissions of any sub-contractor or subservicer
(including the Receivables Servicer) except to the extent that damages or expenses are incurred as
a result of such act or omissions and such damages and expenses would not have been incurred but
for the gross negligence, willful misfeasance, bad faith or recklessness of the Master Servicer or
the Custodian in monitoring the obligations of the sub-contractors or subservicers (including the
Receivables Servicer) referred to in this Agreement.

     (b) None of the Master Servicer, the Custodian or any of the directors or officers or
employees or agents of the Master Servicer or the Custodian shall be under any liability to the
Issuer, except as specifically provided in 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 Master Servicer, the Custodian or any such
Person against any liability that would otherwise be imposed by reason of willful misfeasance, bad
faith or gross negligence (except errors in judgment) in the performance of duties or by reason of
reckless disregard of obligations and duties herein. The Master Servicer, the Custodian and any
director, officer or employee or agent of the Master Servicer or the Custodian may reasonably rely
in good faith on the advice of counsel or on any document of any kind prima

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facie properly executed and submitted by any Person respecting any matters arising under this
Agreement or under the other Transaction Documents.

     (c) Except as provided in this Agreement, neither the Master Servicer nor the Custodian shall
be under any obligation to appear in, prosecute or defend any legal action that is not incidental
to its duties to service, or with respect to custody of, the Receivables in accordance with this
Agreement and that in its opinion may involve it in any expense or liability; provided, however,
that the Master Servicer or the Custodian may undertake any reasonable action that it may deem
necessary or desirable in respect of the Transaction Documents and the rights and duties of the
Parties to the Transaction Documents and the interests of the Issuer in the Transaction Documents.
In such event, the legal expenses and costs for such action and any liability resulting therefrom
shall be expenses, costs and liabilities of the Issuer and the Master Servicer and the Custodian
shall be entitled to be reimbursed therefor, and the Issuer shall defend, indemnify and hold
harmless the Master Servicer and the Custodian from and against any and all costs, expenses,
losses, damages, claims and liabilities arising out of or resulting therefrom.

     Section 5.5. Subservicer and Delegation of Duties. The Master Servicer may, at any
time without notice or consent, delegate (a) any or all of its duties (including, without
limitation, its duties as Custodian) under the Transaction Documents to any of its Affiliates or
(b) specific duties to sub-contractors who are in the business of performing such duties. Without
limiting the generality of the preceding paragraph, the Receivables Servicer will be a subservicer
pursuant to the terms and conditions of the Receivables Servicing Agreement, and the parties
acknowledge that the direct servicing and custodianship of the Receivables will initially be
conducted by the Receivables Servicer, and that the Master Servicer will not directly service or
maintain custody of the Receivables.

     Section 5.6. Master Servicer Not to Resign as Master Servicer; Resignation and Termination
of Receivables Servicer. (a) Subject to the provisions of Section 5.3, the Master
Servicer shall not resign from its obligations and duties under this Agreement except upon the
mutual consent of the Master Servicer, the Indenture Trustee and the Issuer or upon its
determination that the performance of its duties under this Agreement shall no longer be
permissible under applicable law. Notice of any such determination permitting the resignation of
the Master Servicer shall be communicated to the Owner 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 Issuer and the Indenture Trustee concurrently
with or promptly after such notice. No such resignation shall become effective until the Indenture
Trustee or a successor Master Servicer shall have (i) taken the actions required by Section
6.2 and (ii) assumed the responsibilities and obligations of the Master Servicer.

     (b) The Receivables Servicing Agreement with the Receivables Servicer may be terminated upon
the terms and conditions set forth in such agreement.

     Section 5.7. Master Servicer May Own Notes or Certificates. The Master Servicer, and
any Affiliate of the Master Servicer, may, in its individual or any other capacity, become the
owner or pledgee of Notes or Certificates with the same rights as it would have if it were not the

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Master Servicer or an Affiliate thereof, except as otherwise expressly provided herein or in
the other Transaction Documents. Except as set forth herein or in the other Transaction Documents,
Notes and Certificates so owned by or pledged to the Master Servicer or such Affiliate shall have
an equal and proportionate benefit under the provisions of this Agreement, without preference,
priority or distinction as among all of the Notes and Certificates.

ARTICLE VI

SERVICING TERMINATION

     Section 6.1. Master Servicer Termination Events. (a) If any one or more of the
following events (“Master Servicer Termination Event”) shall occur and be continuing:

     (i) any failure by the Master Servicer to deliver to the Indenture Trustee any payment
required to be so delivered by the Master Servicer under the terms of this Agreement that shall
continue unremedied for a period of ten (10) Business Days after written notice of such failure is
received by the Master Servicer from the Issuer or the Indenture Trustee; or

     (ii) failure on the part of the Master Servicer duly to observe or to perform in any material
respect any other covenants or agreements, as the case may be, set forth in this Agreement, which
failure shall (A) materially and adversely affect the rights of Noteholders or Certificateholders
and (B) continue unremedied for a period of ninety (90) days after the date on which written notice
of such failure, requiring the same to be remedied, shall have been given (1) to the Master
Servicer by the Issuer or the Indenture Trustee or (2) to the Issuer, the Indenture Trustee and the
Master Servicer by the Noteholders of Notes evidencing not less than a majority of the principal
amount of the Outstanding Notes or, if no Notes are Outstanding, by holders of Certificates
evidencing Residual Interest aggregating at least a majority; or

     (iii) the Master Servicer suffers a Bankruptcy Event;

     then the Indenture Trustee (provided, that a Responsible Officer of the Indenture Trustee
shall have received written notice thereof) shall promptly notify each Rating Agency, and in each
and every case, so long as a Master Servicer Termination Event shall not have been remedied, either
the Indenture Trustee or the holders of Notes evidencing not less than a majority of the principal
amount of the Notes Outstanding (or, if no Notes are Outstanding, Certificates evidencing Residual
Interest aggregating at least a majority), by notice then given in writing to the Master Servicer
(and to the Indenture Trustee and the Issuer if given by the Noteholders and to the Issuer if given
by the Certificateholders and in each case with a copy to the Rating Agencies) may terminate all of
the rights and obligations of the Master Servicer under this Agreement. On or after the receipt by
the Master Servicer of such written notice, all authority and power of the Master Servicer under
this Agreement, whether with respect to the Notes, the Certificates or the Trust Estate or
otherwise, shall pass to and be vested in the Indenture Trustee or such successor Master Servicer
as may be appointed under Section 6.2; and, without limitation, the Indenture Trustee and
the Issuer are hereby authorized and empowered to execute and deliver, on behalf of the predecessor
Master Servicer, as attorney-in-fact or otherwise, any and all documents and other instruments, and
to do or accomplish all other acts or things

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necessary or appropriate to effect the purposes of such notice of termination, whether to
complete the transfer and endorsement of the Receivables and related documents, or otherwise.

     (b) Upon termination of the Master Servicer under Section 6.1(a), the predecessor
Master Servicer shall cooperate with the Indenture Trustee, the Issuer and such successor Master
Servicer in effecting the termination of the responsibilities and rights of the predecessor Master
Servicer under this Agreement, including the transfer to the Indenture Trustee or such successor
Master Servicer for administration of all cash amounts that shall at the time be held by the
predecessor Master Servicer for deposit, or shall thereafter be received with respect to a
Receivable and the delivery of the Receivable Files and the related accounts and Records to the
extent maintained by the Master Servicer. All reasonable costs and expenses (including attorneys’
fees) incurred in connection with transferring the Receivable Files to the successor Master
Servicer and amending this Agreement to reflect such succession as Master Servicer pursuant to this
Section 6.1 shall be paid by the predecessor Master Servicer upon presentation of
reasonable documentation of such costs and expenses. To the extent such costs and expenses are not
paid by the predecessor Master Servicer, such costs and expenses shall be paid by the Issuer.

     (c) Upon termination of the Master Servicer under Section 6.1(a), the successor Master
Servicer shall service the Receivables through the Receivables Servicing Agreement, unless the
Receivables Servicing Agreement has been terminated pursuant to the terms and conditions set forth
therein.

     Section 6.2. Appointment of Successor Master Servicer. (a) Upon the Master Servicer’s
receipt of notice of termination pursuant to Section 6.1 or the Master Servicer’s
resignation in accordance with the terms of this Agreement, the predecessor Master Servicer shall
continue to perform its functions as Master 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 later of (x) the date 45 days from the delivery to the Indenture Trustee and the Issuer
of written notice of such resignation (or written confirmation of such notice) in accordance with
the terms of this Agreement and (y) the date upon which the predecessor Master Servicer shall
become unable to act as Master Servicer, as specified in the notice of resignation and accompanying
Opinion of Counsel. In the event of the Master Servicer’s resignation or termination hereunder,
the Indenture Trustee shall appoint a successor Master Servicer, and the successor Master Servicer
shall accept its appointment by a written assumption in form acceptable to the Issuer and the
Indenture Trustee (with a copy to each Rating Agency). In the event that a successor Master
Servicer has not been appointed at the time when the predecessor Master Servicer has ceased to act
as Master Servicer in accordance with this Section 6.2, the Indenture Trustee without
further action shall automatically be appointed the successor Master Servicer. The Indenture
Trustee may resign as the Master Servicer by giving written notice of such resignation to the
Issuer and in such event shall be released from such duties and obligations, such release not to be
effective until the date a successor Master Servicer enters into a written assumption as provided
in this Section. Upon delivery of any such notice to the Issuer, the Issuer shall obtain a new
master servicer as the successor Master Servicer in accordance with this Section. Notwithstanding
the above, if the Indenture Trustee shall be legally unable so to act or if, within 30 days after
the delivery of its notice of resignation, the Issuer shall not have obtained a successor Master
Servicer, the Indenture Trustee shall appoint, or petition a court of

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competent jurisdiction to appoint, any established institution, having a net worth of not less
than $100,000,000 and whose regular business shall include the servicing of automotive receivables,
as the successor to the Master Servicer under this Agreement; provided that the Rating Agency
Condition shall be satisfied in connection with such appointment.

     (b) Upon appointment, the successor Master Servicer shall be the successor in all respects to
the predecessor Master Servicer and shall be subject to all the responsibilities, duties, and
liabilities arising thereafter relating thereto placed on the predecessor Master Servicer, by the
terms and provisions of this Agreement; provided, that (i) any failure of such successor Master
Servicer to perform such responsibilities or duties that are caused by the predecessor Master
Servicer’s failure to provide information or monies required hereunder shall not be considered a
default by such successor Master Servicer, (ii) such successor Master Servicer shall have no
liability for actions, inactions or representations of the predecessor Master Servicer, (iii) the
successor Master Servicer shall have no obligation to pay any taxes required to be paid by the
predecessor Master Servicer, (iv) the successor Master Servicer shall have no obligation to pay any
of the fees and expenses of any other party involved in this transaction (other than the fees and
expenses of the Receivables Servicer) and (v) the successor Master Servicer shall have no liability
or obligation with respect to any indemnification obligations of any predecessor Master Servicer.
The indemnification obligations of the successor Master Servicer are expressly limited to those
instances of negligence or willful misconduct of such entity in its capacity as successor Master
Servicer.

     (c) In connection with such appointment, the Indenture Trustee may make such arrangements for
the compensation of such successor Master Servicer out of payments on Receivables as it and such
successor Master Servicer shall agree; provided, however, that no such compensation shall be in
excess of the compensation permitted for the predecessor Master Servicer under this Agreement. The
Indenture Trustee and such successor Master Servicer shall take such action, consistent with this
Agreement, as shall be necessary to effectuate any such succession.

     (d) Notwithstanding anything herein or in the other Transaction Documents to the contrary, in
no event shall any successor Master Servicer be required to purchase any Receivable pursuant to
Section 3.8 herein.

     Section 6.3. Notification to Noteholders and Certificateholders. Upon any termination
of, or appointment of a successor to, the Master Servicer pursuant to this Article VI, the
Indenture Trustee shall give prompt written notice thereof to Noteholders, and the Issuer shall
give prompt written notice thereof to Certificateholders at their respective addresses of record
and to each Rating Agency.

     Section 6.4. Waiver of Past Master Servicer Termination Events. The holders of Notes
evidencing not less than a majority of the principal amount of the Controlling Class (or, if no
Notes are outstanding, holders of Certificates evidencing a majority of the Residual Interest) may,
on behalf of all Noteholders and Certificateholders, waive any Master Servicer Termination Event
hereunder and its consequences, except an event resulting from the failure by the Master Servicer
to make any required payments in accordance with this Agreement, which shall require the unanimous
vote of all Holders of Outstanding Securities. Upon any such waiver of a past

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Master Servicer Termination Event, such Master Servicer Termination Event shall cease to
exist, and shall be deemed to have been remedied for every purpose of this Agreement. No such
waiver shall extend to any subsequent or other Master Servicer Termination Event or impair any
right consequent thereon. The Indenture Trustee shall provide written notice of any such waiver to
the Rating Agencies.

     Section 6.5. Termination. This Agreement will terminate on the Payment Date in the
month following the final payment or liquidation of all the Receivables; provided, however, that so
long as GMAC is the Receivables Servicer, this Agreement will terminate on the earlier of (x) such
Payment Date or (y) the Payment Date immediately succeeding the Termination Date, in which case,
the Master Servicer will have no obligation thereafter to continue to service the Receivables,
whether such Receivables remain outstanding, are paid in full, are delinquent, are defaulted or are
in a bankruptcy or other similar Proceeding. On and after the Termination Date all collections
realized from the Receivables will be paid to the Master Servicer (or to the Receivables Servicer
pursuant to the Receivables Servicing Agreement), and will be property of the Master Servicer (or
the Receivables Servicer) and the Issuer, the Noteholders and the Certificateholders will not be
entitled to such collections or have any remaining interest in the Receivables.

     Section 6.6. Optional Purchase of All Receivables. The Master Servicer, or if the
Master Servicer does not exercise such right, a Certificateholder evidencing a majority of the
Residual Interest in the Certificates so long as the Certificateholder is not BANA, the Seller or
an Affiliate thereof, may purchase the outstanding Receivables (such purchase, the “Optional
Purchase”) and the other assets in the Trust Estate on any Payment Date if both of the
following conditions are satisfied: (i) as of the last day of the related Collection Period, the
Pool Balance has declined to 10% or less of the Pool Balance as of the Cut-Off Date and (ii) the
sum of the Optional Purchase Price and the Available Collections for such Payment Date would be
sufficient to pay (A) the amounts required to be paid under Section 8.4(a) of the Indenture
(assuming that such Payment Date is not the Redemption Date) and (B) the aggregate unpaid Note
Balance of all of the Outstanding Notes as determined by the Indenture Trustee. To exercise such
option, the Master Servicer or Certificateholder, as applicable, shall deposit the Optional
Purchase Price to the Collection Account on such Payment Date. The Master Servicer or
Certificateholders, as applicable, shall furnish written notice of such election (a) to CARI and
GMAC not later than thirty (30) Business Days prior to the Payment Date and (b) to the Indenture
Trustee and the Issuer not later than twenty (20) days (or such longer period as may be required
under the Note Depository Agreement) prior to the Payment Date on which the Notes shall be
redeemed. Following its receipt of such notice, (i) the Indenture Trustee will promptly (but not
later than 3 Business Days after it has received such notice) provide notice of such purchase to
the Noteholders of record and (ii) the Issuer will promptly (but not later than 3 Business Days
after it has received such notice) provide notice of such purchase to the Certificateholders of
record. The purchase price for the Trust Estate under this Section 6.6 shall be equal to
the Optional Purchase Price. If the Master Servicer exercises its option to purchase the Trust
Estate, any Holder of a majority of the Residual Interest may purchase the Trust Estate from the
Master Servicer at a price equal to the Optional Purchase Price so long as such Holder is not BANA,
the Seller or an Affiliate thereof. The Certificateholders are intended third-party beneficiaries
of this Section.

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Section 6.7. Enforcement of Receivable Servicer’s Obligations. 

     (a) The Master Servicer, on behalf of the Indenture Trustee, the Issuer and the Noteholders
shall, from and after the Closing Date, monitor the performance of the Receivables Servicer under
the Receivables Servicing Agreement. Upon the occurrence of a default by the Receivables Servicer
under the Receivables Servicing Agreement, of which an Authorized Officer of the Master Servicer
has actual knowledge, the Master Servicer shall promptly notify the Indenture Trustee thereof, and
shall specify in such notice the action, if any, the Master Servicer is taking in respect of such
default. So long as any such default shall be continuing, the Master Servicer shall, in each and
every case, so long as such default shall not have been remedied, upon the direction of the
Indenture Trustee or the holders of Notes evidencing at least a majority of the principal amount of
the Notes Outstanding (or, if no Notes are Outstanding, Certificates evidencing Residual Interest
aggregating at least a majority), by notice then given in writing to the Master Servicer (and to
the Indenture Trustee and the Issuer if given by the Noteholders and to the Issuer if given by the
Certificateholders and in each case with a copy to the Rating Agencies) (i) terminate all of the
rights and powers of the Receivables Servicer pursuant to the applicable provisions of the
Receivables Servicing Agreement; (ii) exercise any rights it may have to enforce the Receivables
Servicing Agreement against the Receivables Servicer; and/or (iii) waive any such default under the
Receivables Servicing Agreement or take any other action with respect to such default as is
permitted thereunder.

     (b) Upon the Master Servicer’s receipt of notice to terminate the Receivables Servicer
pursuant to Section 6.7(a) or the Receivables Servicer’s resignation in accordance with the
terms of the Receivables Servicing Agreement, the Master Servicer will have the option, but not the
obligation, to service the Receivables, and if the Master Servicer shall not elect service the
Receivables, the Indenture Trustee shall appoint a successor Receivables Servicer, and the
successor Receivables Servicer shall accept its appointment by a written assumption in form
acceptable to the Master Servicer, the Issuer and the Indenture Trustee (with a copy to each Rating
Agency). In the event that a successor Receivables Servicer has not been appointed at the time
when the predecessor Receivables Servicer has ceased to act as Receivables Servicer in accordance
with this Section 6.7(b) and the Receivables Servicing Agreement and the Master Servicer
shall not elect to service the Receivables, the Indenture Trustee without further action shall
automatically be appointed the successor Receivables Servicer. The Indenture Trustee may resign as
the Receivables Servicer by giving written notice of such resignation to the Issuer and in such
event shall be released from such duties and obligations, such release not to be effective until
the date a successor Receivables Servicer enters into a written assumption as provided in this
Section. Upon delivery of any such notice to the Issuer, the Issuer shall obtain a new receivables
servicer as the successor Receivables Servicer in accordance with this Section. Notwithstanding
the above, if the Indenture Trustee shall be legally unable so to act or if, within 30 days after
the delivery of its notice of resignation, the Issuer shall not have obtained a successor
Receivables Servicer, the Indenture Trustee shall appoint, or petition a court of competent
jurisdiction to appoint, any established institution, having a net worth of not less than
$100,000,000 and whose regular business shall include the servicing of automotive receivables, as
the successor to the Receivables Servicer under the Receivables Servicing Agreement; provided that
the Rating Agency Condition shall be satisfied in connection with such appointment.

17

 

     (c) Upon appointment, the successor Receivables Servicer shall be the successor in all
respects to the predecessor Receivables Servicer and shall be subject to all the responsibilities,
duties, and liabilities arising thereafter relating thereto placed on the predecessor Receivables
Servicer, by the terms and provisions of the Receivables Servicing Agreement, provided, that (i)
any failure of such successor Receivables Servicer to perform such responsibilities or duties that
are caused by the predecessor Receivables Servicer’s failure to provide information or monies
required thereunder shall not be considered a default by the Receivables Servicer, (ii) such
successor Receivables Servicer shall have no liability for actions, inactions or representations of
the predecessor Receivables Servicer, (iii) the successor Receivables Servicer shall have no
obligation to pay any taxes required to be paid by the predecessor Receivables Servicer, (iv) the
successor Receivables Servicer shall have no obligation to pay any of the fees and expenses of any
other party involved in this transaction (other than any party to whom the Receivables Servicer has
delegated servicing responsibilities) and (v) the successor Receivables Servicer shall have no
liability or obligation with respect to any indemnification obligations of any predecessor
Receivables Servicer. The indemnification obligations of any successor Receivables Servicer are
expressly limited to those instances of negligence or willful misconduct of such entity in its
capacity as successor Receivables Servicer.

     (d) In connection with any such appointment, the Master Servicer may make such arrangements
for the compensation of such successor as it and such successor shall agree, but in no event shall
such compensation of any successor Receivables Servicer (including the Master Servicer) be in
excess of that payable to the Receivables Servicer under the affected Receivables Servicing
Agreement.

     The Master Servicer shall pay the costs of such enforcement (including the termination of the
Receivables Servicer, the appointment of a successor Receivables Servicer or the transfer and
assumption of the servicing by the Master Servicer) at its own expense and shall be reimbursed
therefor initially (i) by the terminated Receivables Servicer, (ii) from a general recovery
resulting from such enforcement only to the extent, if any, that such recovery exceeds all amounts
due in respect of the related Receivables, (iii) from a specific recovery of costs, expenses or
attorney’s fees against the party against whom such enforcement is directed, or (iv) by the Issuer
to the extent that such amounts described in clauses (i) through (iii) above are
insufficient to reimburse the Master Servicer for such costs of enforcement.

     If the Master Servicer assumes the servicing with respect to any of the Receivables, it will
not assume liability for the representations and warranties of the Receivables Servicer it replaces
or for the errors or omissions of such Receivables Servicer.

ARTICLE VII

MISCELLANEOUS PROVISIONS

     Section 7.1. Amendment. (a) Any term or provision of this Agreement may be amended by
the Master Servicer or the Issuer with prior notice to each Rating Agency but without the consent
of the Indenture Trustee, any Noteholder or the Owner Trustee; provided that such amendment shall
not, as evidenced by an Officer’s Certificate of the Seller delivered to the Indenture Trustee and
the Owner Trustee, materially and adversely affect the interests of the

18

 

Noteholders, the Indenture Trustee or the Owner Trustee; provided, further, that any amendment
entered into pursuant to this Section 7.1(a) shall not significantly change the permitted
activities of the Issuer.

     (b) Any term or provision of this Agreement may be amended by the Master Servicer or the
Issuer with prior notice to each Rating Agency but without the consent of the Indenture Trustee,
any Noteholder, the Owner Trustee or any other Person to add, modify or eliminate any provisions as
may be necessary or advisable in order to enable the Master Servicer or the Issuer or any of its
Affiliates to comply with or obtain more favorable treatment under any law or regulation or any
accounting rule or principle; provided that such amendment shall not, as evidenced by an Officer’s
Certificate of the Seller delivered to the Indenture Trustee and the Owner Trustee materially and
adversely affect the interests of the Noteholders, the Issuer, the Indenture Trustee or the Owner
Trustee; provided, further, that the Rating Agency Condition with respect to Standard & Poor’s
shall have been satisfied; provided, further, that any amendment entered into pursuant to this
Section 7.1(b) shall not significantly change the permitted activities of the Issuer.

     (c) This Agreement may also be amended from time to time by the Master Servicer or the Issuer
with prior notice to each Rating Agency and with the consent of the Holders evidencing not less
than a majority of the Note Balance of the Controlling Class for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of this Agreement. It
will not be necessary for the consent of Noteholders to approve the particular form of any proposed
amendment or consent, but it will be sufficient if such consent approves the substance thereof.
The manner of obtaining such consents (and any other consents of Noteholders provided for in this
Agreement) and of evidencing the authorization of the execution thereof by Noteholders will be
subject to such reasonable requirements as the Indenture Trustee may prescribe, including the
establishment of record dates pursuant to the Note Depository Agreement.

     Notwithstanding anything in this Section 7.1 to the contrary, no amendment to this
Agreement may significantly change the permitted activities of the Issuer without the consent of
the majority of all Outstanding Noteholders.

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

     (e) Prior to the execution of any amendment to this Agreement, the Seller, the Owner Trustee
and the Indenture Trustee shall be entitled to receive and conclusively rely upon an Opinion of
Counsel stating that the execution of such amendment is authorized or permitted by this Agreement
and that all conditions precedent to the execution and delivery of such amendment have been
satisfied. The Owner Trustee and the Indenture Trustee may, but shall not be obligated to, enter
into any such amendment which adversely affects the Owner Trustee’s or the Indenture Trustee’s, as
applicable, own rights, duties or immunities under this Agreement. Furthermore, notwithstanding
anything to the contrary herein, this Agreement may not be

19

 

amended in any way that would adversely affect the Owner Trustee’s rights, privileges,
indemnities, duties or obligations under this Agreement, the Transaction Documents or otherwise
without the prior written consent of the Owner Trustee.

     Section 7.2. Counterparts. For the purpose of facilitating the execution of this
Agreement and for other purposes, this Agreement may be executed in any number of counterparts,
each of which counterparts will be deemed to be an original, and all of which counterparts will
constitute but one and the same instrument.

     Section 7.3. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING, SECTIONS 5-1401 AND 5-1402 OF THE NEW
YORK GENERAL OBLIGATIONS LAW BUT EXCLUDING TO THE MAXIMUM EXTENT PERMITTED BY LAW ALL OTHER
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL
BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Section 7.4. Submission to Jurisdiction; Waiver of Jury Trial. Each of the Parties
hereto hereby irrevocably and unconditionally:

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

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

     (c) agrees that service of process in any such action or Proceeding may be effected by mailing
a copy thereof by registered or certified mail (or any substantially similar form of mail), postage
prepaid, to such Person at its address determined in accordance with Section 7.6 of this
Agreement;

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

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

     Section 7.5. Headings and Cross-References. The various headings in this Agreement
are included for convenience only and will not affect the meaning or interpretation of any
provision of this Agreement.

20

 

     Section 7.6. Notices. All communications and notices pursuant hereto to any Party
must be in writing or by fax and addressed or delivered to it at its address as shown in
Schedule I to the Sale Agreement or at such other address as may be designated by it by
notice to the other Parties and, if mailed or sent by fax, will be deemed given upon receipt at the
address or fax number for each Party as set forth on Schedule I to the Sale Agreement.

     Section 7.7. Severability of Provisions. If any one or more of the covenants,
agreements, provisions, or terms of this Agreement will be for any reason whatsoever held invalid,
then such covenants, agreements, provisions, or terms will be deemed severable from the remaining
covenants, agreements, provisions, or terms of this Agreement and will in no way affect the
validity or enforceability of the other provisions of this Agreement.

     Section 7.8. Further Assurances. The Master Servicer agrees to do and perform, from
time to time, any and all acts and to execute any and all further instruments required or
reasonably requested by the Issuer more fully to effect the purposes of this Agreement, including,
without limitation, the execution of any financing statements or continuation statements relating
to the Receivables for filing under the provisions of the UCC of any applicable jurisdiction.

     Section 7.9. Waivers. No failure or delay on the part of the Master Servicer, the
Issuer or the Indenture Trustee in exercising any power or right hereunder (to the extent such
Person has any power or right hereunder) shall operate as a waiver thereof, nor shall any single or
partial exercise of any such power or right preclude any other or further exercise thereof or the
exercise of any other power or right. No notice to or demand on any Party hereto in any case shall
entitle it to any notice or demand in similar or other circumstances. No waiver or approval by any
Party hereto under this Agreement shall, except as may otherwise be stated in such waiver or
approval, be applicable to subsequent transactions. No waiver or approval under this Agreement
shall require any similar or dissimilar waiver or approval thereafter to be granted hereunder.

     Section 7.10. Cumulative Remedies. The remedies herein provided are cumulative and
not exclusive of any remedies provided by law.

     Section 7.11. Third-Party Beneficiaries. This Agreement shall inure to the benefit of
and be binding upon the Parties hereto, the Noteholders and the Residual Interestholders and their
respective successors and permitted assigns and the Owner Trustee shall be an express third party
beneficiary hereof and may enforce the provisions hereof as if it were a party hereto. Except as
otherwise provided in this Section, no other Person will have any right hereunder.

     Section 7.12. Nonpetition Covenant. Each Party hereto agrees that, prior to the date
which is one year and one day after payment in full of all obligations of each Bankruptcy Remote
Party in respect of all securities issued by any Bankruptcy Remote Party (i) such Party shall not
authorize any Bankruptcy Remote Party to commence a voluntary winding-up or other voluntary case or
other Proceeding seeking liquidation, reorganization or other relief with respect to such
Bankruptcy Remote Party or its debts under any bankruptcy, insolvency or other similar law now or
hereafter in effect in any jurisdiction or seeking the appointment of an administrator, a trustee,
receiver, liquidator, custodian or other similar official with respect to such Bankruptcy Remote
Party or any substantial part of its property or to consent to any such relief or to the

21

 

appointment of or taking possession by any such official in an involuntary case or other
Proceeding commenced against such Bankruptcy Remote Party, or to make a general assignment for the
benefit of, its creditors generally, any Party hereto or any other creditor of such Bankruptcy
Remote Party, and (ii) none of the Parties hereto shall commence or join with any other Person in
commencing any Proceeding against such Bankruptcy Remote Party under any bankruptcy,
reorganization, liquidation or insolvency law or statute now or hereafter in effect in any
jurisdiction. This Section shall survive the termination of this Agreement.

     Section 7.13. Limitation of Liability. Notwithstanding anything contained herein to
the contrary, this Agreement has been executed and delivered by Wilmington Trust Company, not in
its individual capacity but solely as Owner Trustee, and in no event shall it have any liability
for the representations, warranties, covenants, agreements or other obligations of the Issuer
hereunder or under the Notes or any of the other Transaction Documents or in any of the
certificates, notices or agreements delivered pursuant thereto, as to all of which recourse shall
be had solely to the assets of the Issuer. Under no circumstances shall the Owner Trustee be
personally liable for the payment of any indebtedness or expense of the Issuer or be liable for the
breach or failure of any obligations, representation, warranty or covenant made or undertaken by
the Issuer under the Transaction Documents. For the purposes of this Agreement, in the performance
of its duties or obligations hereunder, the Owner Trustee shall be subject to, and entitled to the
benefits of, the terms and provisions of Articles VI, VII and VIII of the
Trust Agreement.

*      *      *      *      *

22

 

     The Parties have caused this Master Servicing Agreement to be executed by their respective
duly authorized officers as of the date and year first above written.

	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA,	 	 
	 	 	NATIONAL ASSOCIATION,	 	 
	 	 	     as Master Servicer and Custodian	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Daniel Goodwin	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Daniel Goodwin	 	 
	 

	 	 	 	Title: Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	BANC OF AMERICA SECURITIES	 	 
	 	 	AUTO TRUST 2006-G1,	 	 
	 	 	as Issuer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	WILMINGTON TRUST COMPANY, not in its

individual capacity but solely

as Owner Trustee	 	 

	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ J. Christopher Murphy
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: J. Christopher Murphy	 	 
	 

	 	 	 	Title: Financial Services Officer	 	 

S-1 

 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,

as Indenture Trustee

 	 
	 	By:  	/s/  Melissa A. Rosal
 	 
	 	 	Name:  	Melissa A. Rosal 	 
	 	 	Title:  	Vice President 	 
	 

S-2 

 

EXHIBIT A

FORM OF MONTHLY SERVICING REPORT

Attached

 

 

GMAC LLC 

Whole Loan

Monthly Servicing Report

 

	 	 	 	 	 
	Collection Period
	 	 	 	 
	Distribution Date
	 	 	 	 
	Transaction Month
	 	 	 	 

	 	 	 	 	 	 	 	 	 
	I. ORIGINAL PORTFOLIO INFORMATION
	 	 	 	 	 	 	 	 
	 
	Original Portfolio
	 	 	 	 	 	$	.00	 
	Number of Contracts
	 	 	 	 	 	 	0	 
	Weighted Average Coupon
	 	 	 	 	 	 	0.00	%
	Weighted Average Original Maturity (in months)
	 	 	 	 	 	 	0.00	 
	 
	 
	II. COLLECTIONS
	 	 	 	 	 	 	 	 
	 
	Interest:
	 	 	 	 	 	 	 	 
	Interest Collections
	 	 	 	 	 	$	0.00	 
	Administrative
Contracts or Warranty Contracts – Administrative Purchase Payments and Warranty Payments Related to interest
	 	 	 	 	 	 	0.00	 
	 
	 	 	 	 	 	 	 
	Total
	 	 	 	 	 	$	0.00	 
	 
	Principal:
	 	 	 	 	 	 	 	 
	Principal Collections
	 	 	 	 	 	$	0.00	 
	Administrative Receivables or Warranty Receivables – Administrative Purchase Payments and Warranty Payments
Related to Principal
	 	 	 	 	 	 	0.00	 
	Liquidation Proceeds from Receivables that became
Liquidating Receivables during Collection Period
	 	 	 	 	 	 	0.00	 
	 
	 	 	 	 	 	 	 
	Total
	 	 	 	 	 	$	0.00	 
	 
	Liquidation Proceeds (Recoveries) from Receivables
that became Liquidating Receivables during Prior Period
	 	 	 	 	 	 	0.00	 
	 
	 	 	 	 	 	 	 
	Total Collections
	 	 	 	 	 	$	0.00	 
	 
	Principal Adjustment
	 	 	 	 	 	 	 	 
	Principal Losses for Collection Period
	 	 	 	 	 	 	0.00	 
	 
	 	 	 	 	 	 	 
	Total Regular Principal Reduction
	 	 	 	 	 	$	0.00	 
	 
	III. SERVICING FEE, ADMINISTRATION AND OTHER FEES AND EXPENSES
	 	 	 	 	 	 	 	 
	 
	Servicing Fee Due
	 	 	 	 	 	$	0.00	 
	Servicing Fee Paid
	 	 	 	 	 	$	0.00	 
	 
	 	 	 	 	 	 	 
	Servicing Fee Shortfall
	 	 	 	 	 	$	0.00	 
	 
	 
	 
	IV. DISTRIBUTIONS
	 	 	 	 	 	 	 	 
	 
	Available Collections
	 	 	 	 	 	$	0.00	 
	Servicing Fee Paid
	 	 	 	 	 	$	0.00	 
	Daily Collections Remitted
	 	 	 	 	 	$	0.00	 
	 
	 	 	 	 	 	 	 
	Net Distribution Owed to (Servicer) Purchaser
	 	 	 	 	 	$	0.00	 
	 
	 
	 
	V. PORTFOLIO INFORMATION
	 	 	 	 	 	 	 	 
	 
	 
	 	Beginning of Period	 	End of Period
	 
	 	 	 	 
	Portfolio Contract Balance
	 	$	0.00	 	 	$	0.00	 
	Weighted Average Coupon (WAC)
	 	 	0.00	%	 	 	0.00	%
	Weighted Average Maturity (WAM)
	 	 	0.00	 	 	 	0.00	 
	Remaining Number of Contracts
	 	 	0	 	 	 	0	 
	Accrued Interest
	 	$	0.00	 	 	$	0.00	 
	 
	 
	VI. NET LOSS AND DELINQUENCY ACCOUNT ACTIVITY
	 	 	 	 	 	 	 	 
	 
	Losses:
	 	 	 	 	 	 	 	 
	Total Losses for Collection Period
	 	 	 	 	 	$	0.00	 
	Liquidation
Proceeds from Receivables that become Liquidating Receivables during Collection Period
	 	 	 	 	 	$	0.00	 
	Liquidation Contracts (#)
	 	 	 	 	 	 	0	 
	Liquidation Proceeds (Recoveries) from Receivables
that become Liquidating Receivables during Prior Period
	 	 	 	 	 	$	0.00	 
	Net Losses for Collection Period
	 	 	 	 	 	$	0.00	 
	Cumulative Net Losses for all Periods
	 	 	 	 	 	$	0.00	 
	 
	Delinquent Contracts
	 	# of Contracts	 	Amount
	 
	 	 	 
	31-60 Days Delinquent
	 	 	0	 	 	$	0.00	 
	61-90 Days Delinquent
	 	 	0	 	 	 	0.00	 
	Over 90 Days Delinquent
	 	 	0	 	 	 	0.00	 
	 
	 	 	 	 	 	 
	Total
	 	 	0	 	 	$	0.00	 
	 
	 

 

EXHIBIT B

SERVICING CRITERIA

RELEVANT SERVICING CRITERIA

The assessment of compliance to be delivered by the Receivables Servicer, the Master Servicer and
the Indenture Trustee shall address, at a minimum, the criteria identified as below as
“Applicable Servicing Criteria” with respect to such party:

Where there are multiple checks for criteria the attesting party will identify in their management
assertion that they are attesting only to the portion of the distribution chain they are
responsible for in the related transaction agreements.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Receivables	 	Master	 	 
	Regulation AB	 	 	 	Servicer	 	Servicer	 	Indenture Trustee
	Reference	 	Servicing Criteria	 	(GMAC)	 	(BANA)	 	(US Bank)
	 

	 	I. 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.
	 	X
	 	X
	 	X
	 
	 	 	 	 	 	 	 	 
	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.
	 	X
	 	X
	 	X
	 
	 	 	 	 	 	 	 	 
	1122(d)(1)(iii)

	 	Any requirements in the transaction
agreements to maintain a back-up
servicer for the Pool Assets are
maintained.
	 	N/A
	 	N/A
	 	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
	 	N/A
	 	N/A
	 
	 	 	 	 	 	 	 	 
	 

	 	II. 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
	 	 	 	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
	 	 	 	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
	 	N/A
	 	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
	 	 	 	 	 	X

B-1 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Receivables	 	Master	 	 
	Regulation AB	 	 	 	Servicer	 	Servicer	 	Indenture Trustee
	Reference	 	Servicing Criteria	 	(GMAC)	 	(BANA)	 	(US Bank)
	 

	 	of
this criterion, “federally insured
depository institution” with respect to
a foreign financial institution means a
foreign financial institution that
meets the requirements of Rule
13k-1(b)(1) of the Securities Exchange
Act.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	1122(d)(2)(vi)

	 	Unissued checks are safeguarded so as
to prevent unauthorized access.
	 	X
	 	 	 	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) mathematically
accurate; (B) prepared within 30
calendar days after the bank statement
cutoff date, or such other number of
days specified in the transaction
agreements; (C) reviewed and approved
by someone other than the person who
prepared the reconciliation; and (D)
contain explanations for reconciling
items. These reconciling items are
resolved within 90 calendar days of
their original identification, or such
other number of days specified in the
transaction agreements.
	 	 	 	 	 	X
	 
	 	 	 	 	 	 	 	 
	 

	 	III. 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 amount financed and
number of Pool Assets serviced by the
Servicer.
	 	 	 	 	 	X
	 
	 	 	 	 	 	 	 	 
	1122(d)(3)(ii)

	 	Amounts due to investors are allocated
and remitted in accordance with
timeframes, distribution priority and
other terms set forth in the
transaction agreements.
	 	 	 	 	 	X
	 
	 	 	 	 	 	 	 	 
	1122(d)(3)(iii)

	 	Disbursements made to an investor are
posted within two business days to the
Servicer’s investor records, or such
other number of days specified in the
transaction agreements.
	 	 	 	 	 	X
	 
	 	 	 	 	 	 	 	 
	1122(d)(3)(iv)

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

	 	IV. 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.
	 	X	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	1122(d)(4)(ii)

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

B-2 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Receivables	 	Master	 	 
	Regulation AB	 	 	 	Servicer	 	Servicer	 	Indenture Trustee
	Reference	 	Servicing Criteria	 	(GMAC)	 	(BANA)	 	(US Bank)
	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.
	 	X	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	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.
	 	X	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	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 amount financed.
	 	X	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	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 transaction agreements and related
pool asset documents.
	 	X	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	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.
	 	X	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	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).
	 	X	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	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
	 	N/A
	 	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.
	 	X	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	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
	 	X	 	 	 	 

B-3 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Receivables	 	Master	 	 
	Regulation AB	 	 	 	Servicer	 	Servicer	 	Indenture Trustee
	Reference	 	Servicing Criteria	 	(GMAC)	 	(BANA)	 	(US Bank)
	 

	 	such payments, provided that such
support has been received by the
servicer at least 30 calendar days
prior to these dates, or such other
number of days specified in the
transaction agreements.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	1122(d)(4)(xii)

	 	Any late payment penalties in
connection with any payment to be made
on behalf of an obligor are paid from
the Servicer’s funds and not charged to
the obligor, unless the late payment
was due to the obligor’s error or
omission.
	 	X	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	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.
	 	X	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	1122(d)(4)(xiv)

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

B-4

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