Document:

exhibit10-4.htm

Exhibit 10.4

 

20[__]-[__] SUBI SERVICING SUPPLEMENT

 

TO

 

AMENDED AND RESTATED

TRUST AND SERVICING AGREEMENT

 

among

 

 

TMTT, INC.,

as Titling Trustee of Toyota Lease Trust,

 

TOYOTA MOTOR CREDIT CORPORATION,

as Servicer,

 

and

 

U.S. BANK NATIONAL ASSOCIATION,

as Trust Agent

 

Dated as of [__________]

  

  

  

 

	
ARTICLE I

	
DEFINITIONS

	
2

	 	 	 
	
    1.01

	
Definitions

	
2

	 	 	 
	
ARTICLE II

	
REPRESENTATIONS OF SERVICER

	
2

	 	 	 
	
    2.01

	
Representations of Servicer

	
2

	 	 	 
	
ARTICLE III

	
CREATION OF 20[__]-[__] SUBI

	
4

	 	 	 
	
    3.01

	
Initial Creation of 20[__]-[__] SUBI Portfolio and 20[__]-[__] SUBI Sub- Trust

	
4

	
    3.02

	
[Reserved]

	
4

	
    3.03

	
Servicer Payment in Respect of Certain Contracts and Leased Vehicles

	
4

	
    3.04

	
Filings

	
5

	 	 	 
	
ARTICLE IV

	
SPECIFIC REQUIREMENTS FOR ADMINISTRATION AND SERVICING OF CONTRACTS IN 20[__]-[__] SUBI PORTFOLIO

	
6

	 	 	 
	
    4.01

	
Servicer Bound by Titling Trust Agreement

	
6

	
    4.02

	
Collection of Monthly Payments and Remittances; Application of Proceeds; Accounts

	
6

	
    4.03

	
Records

	
11

	
    4.04

	
Collection and Application of Security Deposits

	
12

	
    4.05

	
Appointment of Subservicer

	
12

	
    4.06

	
Payment of Certain Fees and Expenses; No Offset

	
13

	
    4.07

	
Servicing Compensation

	
14

	
    4.08

	
Repossession and Sale of Leased Vehicles

	
15

	
    4.09

	
Servicer to Act on Behalf of Titling Trust

	
17

	
    4.10

	
Indemnities of Servicer

	
19

	
    4.11

	
Third Party Claims

	
20

	
    4.12

	
Insurance Policies

	
21

	
    4.13

	
Servicer Not to Resign; Assignment

	
21

	
    4.14

	
Obligor Insurance Coverage in Respect of Leased Vehicles

	
22

	
    4.15

	
Merger or Consolidation of, or Assumption of the Obligations of, Servicer

	
23

	
    4.16

	
Limitation on Liability of Servicer and Others

	
23

	
    4.17

	
Contingent and Excess Liability Insurance Policies

	
24

	 	 	 
	
ARTICLE V

	
STATEMENTS AND REPORTS

	
24

	 	 	 
	
    5.01

	
Servicer’s Certificate

	
24

	
    5.02

	
Annual Statement of Compliance; Notice of Default

	
25

	
    5.03

	
Other Certificates and Notices From Servicer

	
25

	
    5.04

	
Tax Returns

	
26

	
    5.05

	
Information to be Provided by the Servicer

	
27

	
    5.06

	
Remedies

	
27

	 	 	 
	
ARTICLE VI

	
DEFAULT

	
28

	 	 	 
	
    6.01

	
Servicer Default; Termination of Servicer as to 20[__]-[__] SUBI Portfolio

	
28

	  	  	  

  

  

  

	
    6.02

	
No Effect on Other Parties

	
28

	
    6.03

	
Appointment of Successor

	
29

	
    6.04

	
Compensation Payable

	
30

	
    6.05

	
Notification

	
30

	 	 	 
	
ARTICLE VII

	
MISCELLANEOUS

	
31

	 	 	 
	
    7.01

	
Termination of Agreement

	
31

	
    7.02

	
Amendment

	
31

	
    7.03

	
Governing Law

	
33

	
    7.04

	
Notices

	
33

	
    7.05

	
Severability

	
33

	
    7.06

	
Nonpetition Covenants

	
33

	
    7.07

	
Inspection and Audit Rights

	
34

	
    7.08

	
Headings

	
34

	
    7.09

	
Execution in Counterparts

	
34

	
    7.10

	
Rights Cumulative

	
34

	
    7.11

	
Further Assurances

	
34

	
    7.12

	
Third-Party Beneficiaries

	
35

	
    7.13

	
Effect of 20[__]-[__] SUBI Servicing Supplement on Titling Trust Agreement

	
35

	
    7.14

	
Intent of the Parties; Reasonableness

	
35

	
    7.15

	
Assignment by the Titling Trust or Servicer

	
36

 

EXHIBITS

 

	
EXHIBIT A

	
Schedule of 20[__]-[__] Contracts and 20[__]-[__] Leased Vehicles as of the Initial Cutoff Date

	
A-1

	 	 	 
	
EXHIBIT B

	
Form of Power of Attorney

	
B-1

	 	 	 
	
EXHIBIT C

	
Form of Servicer’s Certificate

	
C-1

	 	 	 
	
EXHIBIT D

	
Form of Annual Certification

	
D-1

	 	 	 
	
EXHIBIT E

	
Servicing Criteria to be Addressed in Assessment of Compliance

	
E-1

	 	 	 
	
SCHEDULE I

	
Servicer Offices

	  

 

  

  

  

20[__]-[__] SUBI SERVICING SUPPLEMENT

TO THE

AMENDED AND RESTATED TRUST AND SERVICING AGREEMENT

20[__]-[__] SUBI SERVICING SUPPLEMENT TO THE AMENDED AND RESTATED TRUST AND SERVICING AGREEMENT (this “20[__]-[__] SUBI Servicing Supplement”), dated as of [__________], among TMTT, INC., a Delaware corporation, as Titling Trustee of Toyota Lease Trust, a Delaware business trust (the “Titling Trust”), TOYOTA MOTOR CREDIT CORPORATION, a California corporation (“TMCC”), as Servicer, and U.S. BANK NATIONAL ASSOCIATION (formerly known as First Bank National Association), as Trust Agent.

 

RECITALS

 

A.           TMCC, the Titling Trustee and the Trust Agent have entered into the Titling Trust Agreement, pursuant to which TMCC and the Titling Trustee formed the Titling Trust for the purpose of taking assignments and conveyances of, holding in trust and dealing in, various Titling Trust Assets in accordance with the Titling Trust Agreement.

 

B.           Concurrently herewith, and as contemplated by the Titling Trust Agreement, TMCC, the Titling Trustee and the Trust Agent are entering into the 20[__]-[__] SUBI Supplement, pursuant to which the Titling Trustee, on behalf of the Titling Trust and at the direction of TMCC, as UTI Beneficiary, will create and issue to or to the order of TMCC a 20[__]-[__] SUBI Certificate evidencing beneficial interests in the assets of the 20[__]-[__] SUBI.  It is the intention of the parties hereto that the 20[__]-[__] SUBI Certificate represent a 100% beneficial interest in the 20[__]-[__] SUBI, whose beneficiaries generally will be entitled to the net
cash flow arising from, but only from, the related 20[__]-[__] SUBI Assets, all as set forth in the Titling Trust Agreement and the 20[__]-[__] SUBI Supplement.

 

C.           Also concurrently herewith, TMCC and the Depositor are entering into the 20[__]-[__] SUBI Certificate Transfer Agreement, pursuant to which TMCC is selling to the Depositor, without recourse, all of TMCC’s right, title and interest in and to the 20[__]-[__] SUBI Certificate, and the interest in the 20[__]-[__] SUBI represented thereby, and all moneys due thereon and paid thereon or in respect thereof and the right to realize on any property that may be deemed to secure the 20[__]-[__] SUBI, and all proceeds thereof.

 

D.           Also concurrently herewith, and as contemplated by the Titling Trust Agreement, the Depositor and the 20[__]-[__] Securitization Trust are entering into the 20[__]-[__] Issuer SUBI Certificate Transfer Agreement, pursuant to which the Depositor is selling to the 20[__]-[__] Securitization Trust, without recourse, all of the Depositor’s right, title and interest in and to the 20[__]-[__] SUBI Certificate, and the interest in the 20[__]-[__] SUBI represented thereby, and all moneys due thereon and paid thereon or in respect thereof and the right to realize on any property that may be deemed to secure the 20[__]-[__] SUBI, and all proceeds
thereof, in connection with a Securitized Financing thereof by the Depositor.

 

E.           The parties desire to supplement the servicing provisions of the Titling Trust Agreement, insofar as they apply to the 20[__]-[__] SUBI, the 20[__]-[__] SUBI Sub-Trust and

 

  

  

  

the 20[__]-[__] SUBI Certificate, to provide for further specific servicing obligations that will benefit the holders of the 20[__]-[__] SUBI Certificate and the parties to and other beneficiaries of the Transaction Documents relating to the Securitized Financing contemplated by the 20[__]-[__] Securitization Indenture.

 

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 are hereby acknowledged by each party hereto, the parties hereto agree to the following supplemental obligations with regard to the 20[__]-[__] SUBI Sub-Trust:

 

ARTICLE I

DEFINITIONS

 

1.01           Definitions.  For all purposes of this 20[__]-[__] SUBI Servicing Supplement, except as otherwise expressly provided or unless the context otherwise requires, capitalized terms used and not otherwise defined herein shall have the meanings ascribed thereto in the Annex of Definitions attached to the Titling Trust Agreement or in the Annex of Supplemental Definitions attached to the 20[__]-[__] SUBI Supplement.  In the event of any conflict between a definition set forth in the Annex of Definitions and the Annex of Supplemental Definitions, the definition set forth
in the Annex of Supplemental Definitions shall prevail.  In the event of any conflict between a definition set forth both herein and in the Annex of Definitions or Annex of Supplemental Definitions, the definition set forth herein shall prevail.  All terms used in this 20[__]-[__] SUBI Servicing Supplement include, as appropriate, all genders and the plural as well as the singular. All references such as “herein”, “hereof” and the like shall refer to this 20[__]-[__] SUBI Servicing Supplement as a whole and not to any particular article or section within this 20[__]-[__] SUBI Servicing Supplement.  All references such as “includes” and variations thereon shall mean “includes without limitation” and references to “or” shall mean “and/or”.  Any reference herein to the
“Titling Trustee, acting on behalf of the Titling Trust”, or words of similar import, shall be deemed to mean the Titling Trustee, acting on behalf of Toyota Lease Trust and all beneficiaries thereof.  Any reference herein to the “20[__]-[__] Securitization Trustee, acting on behalf of the 20[__]-[__] Securitization Trust”, or words of similar import, shall be deemed to mean the 20[__]-[__] Securitization Trustee, acting on behalf of the Toyota Auto Lease Trust 20[__]-[__] and all beneficiaries thereof.

 

ARTICLE II

REPRESENTATIONS OF SERVICER

 

2.01           Representations of Servicer.  The Servicer makes the following representations to the Titling Trustee, the 20[__]-[__] Securitization Trustee and each SUBI Beneficiary.  The representations speak as of the execution and delivery of this 20[__]-[__] SUBI Servicing Supplement and as of the Closing Date and shall survive the sale of the 20[__]-[__] SUBI Certificate to the 20[__]-[__] Securitization Trust and the pledge thereof to the Indenture Trustee pursuant to the Indenture:

 

(a)           Organization and Good Standing.  The Servicer shall have been duly organized and shall be validly existing as a corporation in good standing under the laws of the State of California, with corporate power and authority to own its properties and to conduct its business

 

  

  

  

as such properties shall be currently owned and such business is presently conducted, and had at all relevant times, and shall now have, corporate power, authority and legal right to acquire, own, sell and service the Contracts and related Leased Vehicles and to hold the related Contract Documents and Certificates of Title as custodian on behalf of the Titling Trust.

 

(b)           Due Qualification.  The Servicer shall be duly qualified to do business as a foreign corporation in good standing, and shall have obtained all necessary licenses and approvals in all jurisdictions in which the ownership or lease of property or the conduct of its business (including the servicing of the 20[__]-[__] Contracts and related 20[__]-[__] Leased Vehicles as required by this 20[__]-[__] SUBI Servicing Supplement) shall require such qualifications and where the failure to so qualify will have a material adverse effect on the ability of the Servicer to conduct its
business or perform its obligations under this 20[__]-[__] SUBI Servicing Supplement.

 

(c)           Power and Authority.  The Servicer shall have the corporate power and authority to execute and deliver this 20[__]-[__] SUBI Servicing Supplement and to carry out its terms; and the execution, delivery and performance of this 20[__]-[__] SUBI Servicing Supplement have been duly authorized by the Servicer by all necessary corporate action.

 

(d)           Binding Obligations.  This 20[__]-[__] SUBI Servicing Supplement shall have been duly authorized by all necessary corporate action on the part of the Servicer and shall constitute a legal, valid and binding obligation of the Servicer enforceable in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization or other similar laws affecting creditors’ rights generally or by general equity principles.

 

(e)           No Violation.  The consummation of the transactions contemplated by this 20[__]-[__] SUBI Servicing Supplement and the fulfillment of the terms of this 20[__]-[__] SUBI Servicing Supplement shall not conflict with, result in any breach of any of the terms and provisions of, nor constitute (with or without notice or lapse of time) a default under, the articles of incorporation or bylaws of the Servicer or any indenture, agreement or other instrument to which the Servicer is a party or by which it shall be bound; nor result in the creation or imposition of any Lien upon any of
its properties pursuant to the terms of any such indenture, agreement or other instrument (other than this 20[__]-[__] SUBI Servicing Supplement), nor violate any law or, to the best of the Servicer’s knowledge, any order, rule or regulation applicable to the Servicer of any court or of any federal or state regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Servicer or its properties which breach, default, conflict, lien or violation would have a material adverse effect on the earnings, business affairs of the Servicer.

 

(f)           No Proceedings.  There is no action, suit or proceeding before or by any court or governmental agency or body, domestic or foreign, now pending, or to the Servicer’s knowledge, threatened, against or affecting the Servicer:  (i) asserting the invalidity or unenforceability of this 20[__]-[__] SUBI Servicing Supplement, the 20[__]-[__] Securitization Trust Agreement, the 20[__]-[__] Securitization Indenture, the Certificates or the Notes, (ii) seeking to prevent the issuance of the Certificates or the Notes or the consummation of any of the
transactions contemplated by this 20[__]-[__] SUBI Servicing Supplement, the 20[__]-[__] Securitization Trust Agreement, the 20[__]-[__] Securitization Indenture or any Securitization Trust

 

  

  

  

Documents, (iii) seeking any determination or ruling that might materially and adversely affect the performance by the Servicer of its obligations under, or the validity or enforceability of, this 20[__]-[__] SUBI Servicing Supplement, the 20[__]-[__] Securitization Trust Agreement, the 20[__]-[__] Securitization Indenture, the Certificates or the Notes, or (iv) relating to the Servicer and which might affect the federal or state income, excise, franchise or similar tax attributes of the Notes.

 

ARTICLE III

CREATION OF 20[__]-[__] SUBI

 

3.01           Initial Creation of 20[__]-[__] SUBI Portfolio and 20[__]-[__] SUBI Sub- Trust.

 

(a)           Pursuant to Section 3.01 of the Titling Trust Agreement and Section 2.01 of the 20[__]-[__] SUBI Supplement, the Titling Trustee has been directed to cause to be identified and allocated on the books and records of the Titling Trust the separate 20[__]-[__] SUBI Sub-Trust consisting of the 20[__]-[__] SUBI Portfolio and certain other associated Titling Trust Assets specified therein.  The Titling Trustee, on behalf of the Titling Trust, hereby directs that the Servicer so identify and allocate such a separate portfolio of Contracts and related Leased Vehicles from among all Titling Trust Assets owned by the Titling Trustee on behalf of
the Titling Trust and currently accounted for as part of the UTI Sub-Trust.

 

(b)           The Servicer hereby identifies, allocates and segregates such a portfolio of Contracts and related Leased Vehicles more particularly described on Exhibit A hereto, in order to create the initial 20[__]-[__] SUBI Portfolio.

 

(c)           The Servicer hereby represents and warrants to the Titling Trustee, the 20[__]-[__] Securitization Trustee and each SUBI Beneficiary that each of the Contracts described on Exhibit A hereto is an Eligible Contract.  Exhibit A shall set forth as to each 20[__]-[__] Contract or 20[__]-[__] Leased Vehicle, as the case may be, (i) an identification number for the related 20[__]-[__] Leased Vehicle, (ii) the date of origination, (iii) the Securitization Value as of the Cutoff Date, (iv) the Securitization Residual Value, (v) the ALG Residual Value, (vi) the Contract Residual Value, (vii) the Monthly Payment and (viii) number of months
remaining from the Cutoff Date to the month in which the Maturity Date occurs.

 

3.02           [Reserved].

 

3.03           Servicer Payment in Respect of Certain Contracts and Leased Vehicles.

 

(a)           The representations and warranties of the Servicer set forth in Sections 3.01(c) with respect to each 20[__]-[__] Contract shall survive delivery of the related 20[__]-[__] Contract to the 20[__]-[__] SUBI Portfolio and the 20[__]-[__] SUBI Sub-Trust and shall continue (speaking as of the dates made) so long as each such 20[__]-[__] Contract remains outstanding, or until the termination of the 20[__]-[__] Securitization Indenture pursuant to the terms thereof, whichever occurs earlier.  Each of the parties hereto shall inform the other parties to this 20[__]-[__] SUBI Servicing Supplement and the 20[__]-[__] Securitization Trustee
promptly, in writing, upon the discovery of any breach of the Servicer’s representations and warranties made pursuant to Sections 3.01(c) that materially and adversely affects the interests of the 20[__]-[__] Securitization Trust in any 20[__]-[__] Contract.  Within 60 days of the date on

 

  

  

  

which it discovers or receives notice of such breach, unless such breach shall have been cured in all material respects, the Servicer shall, as the sole remedy for such breach, (i) remit the Reallocation Payment in respect of such 20[__]-[__] Contract into the 20[__]-[__] SUBI Collection Account as of the day on which such cure period shall have ended, (ii) reallocate such 20[__]-[__] Contract and the related 20[__]-[__] Leased Vehicle and other related Titling Trust Assets from the 20[__]-[__] SUBI Portfolio to the UTI Portfolio, and (iii) indemnify, defend and hold harmless the holders of the 20[__]-[__] SUBI Certificate (including without limitation the 20[__]-[__] Securitization Trustee on behalf of the
20[__]-[__] Securitization Trust and the Noteholders) and any subsequent servicer (if other than the current Servicer) from and against, any and all loss or liability with respect to or resulting from any such 20[__]-[__] Contract or related 20[__]-[__] Leased Vehicle.

 

(b)           In the event that the Servicer receives funds from a Dealer that is required, pursuant to a Dealer Agreement, to repurchase a Contract or Leased Vehicle included in the 20[__]-[__] SUBI Portfolio, the Servicer shall, subject to Section 3.01 of the 20[__]-[__] SUBI Supplement, within two Business Days of receipt thereof, deposit such funds into the 20[__]-[__] SUBI Collection Account, which deposit shall satisfy the UTI Beneficiary’s obligations with respect to enforcement of such Dealer repurchase obligation, and return to the repurchasing Dealer the Certificate of Title and Contract with respect to such Leased Vehicle.

 

(c)           The obligations of the Servicer pursuant to this Section 3.03 shall survive any termination of the Servicer with respect to the 20[__]-[__] SUBI Portfolio and 20[__]-[__] SUBI Sub-Trust under this 20[__]-[__] SUBI Servicing Supplement or the Titling Trust Agreement.

 

3.04           Filings.  The Servicer will undertake all other and future actions and activities as may be reasonably necessary to perfect (or evidence) and confirm the foregoing allocations of Trust Assets to the 20[__]-[__] SUBI Sub-Trust and the 20[__]-[__] SUBI Portfolio, as the case may be, including filing or causing to be filed UCC financing statements and executing and delivering all related filings, documents or writings as may be reasonably necessary hereunder or under any other Securitization Trust Documents, whether on its own behalf or pursuant to the power of attorney
granted by the Grantor in the 20[__]-[__] SUBI Supplement; provided, however, that in no event shall the Servicer be required to take any action to perfect a security interest that may be held by the 20[__]-[__] Securitization Trustee in any 20[__]-[__] Leased Vehicle.

 

ARTICLE IV

SPECIFIC REQUIREMENTS FOR ADMINISTRATION AND SERVICING OF CONTRACTS IN 20[__]-[__] SUBI PORTFOLIO

 

4.01           Servicer Bound by Titling Trust Agreement.

 

(a)           Except as otherwise specifically provided herein:  (i) the Servicer shall continue to be bound by all provisions of the Titling Trust Agreement with respect to the 20[__]-[__] Contracts, the 20[__]-[__] Leased Vehicles and other associated Titling Trust Assets in the 20[__]-[__] SUBI Sub-Trust, including without limitation the provisions thereof relating to the administration and servicing of 20[__]-[__] Contracts; and (ii) the provisions set forth herein shall operate either as additions to or modifications of the extant obligations of the Servicer

 

  

  

  

under the Titling Trust Agreement, as the context may require.  In the event the provisions of this 20[__]-[__] SUBI Servicing Supplement are more exacting or specific than those contained in the Titling Trust Agreement or in the event of any conflict between the provisions of this 20[__]-[__] SUBI Servicing Supplement with respect to the 20[__]-[__] SUBI, and those of the Titling Trust Agreement, the provisions of this 20[__]-[__] SUBI Servicing Supplement shall govern.

 

(b)           For purposes of determining the Servicer’s obligations with respect to the servicing of the 20[__]-[__] SUBI Sub-Trust under this 20[__]-[__] SUBI Servicing Supplement (including without limitation pursuant to Article IV hereof), general references in the Titling Trust Agreement to:  (i) a SUBI Account shall be deemed to refer more specifically to a 20[__]-[__] SUBI Account; (ii) a SUBI Asset shall be deemed to refer more specifically to a 20[__]-[__] SUBI Asset; (iii) an appropriate or applicable SUBI Collection Account shall be deemed to refer more specifically to the 20[__]-[__] SUBI Collection Account; (iv) a SUBI Portfolio
shall be deemed to refer more specifically to the 20[__]-[__] SUBI Portfolio; (v) a SUBI Sub-Trust shall be deemed to refer more specifically to the 20[__]-[__] SUBI Sub-Trust; (vi) a SUBI Servicing Supplement shall be deemed to refer more specifically to this 20[__]-[__] SUBI Servicing Supplement; and (vii) a SUBI Supplement shall be deemed to refer more specifically to the 20[__]-[__] SUBI Supplement.

 

(c)           Coincident with the execution and delivery of this 20[__]-[__] SUBI Servicing Supplement, the Servicer shall furnish the 20[__]-[__] Securitization Trustee, on behalf of the 20[__]-[__] Securitization Trust, with an Officer’s Certificate listing the officers or other authorized signatories of the Servicer currently involved in, or responsible for, the administration and servicing of the Contracts in the 20[__]-[__] SUBI Portfolio, which list shall from time to time be updated by the Servicer.

 

4.02           Collection of Monthly Payments and Remittances; Application of Proceeds; Accounts.

 

(a)           Notwithstanding anything herein or in the Titling Trust Agreement to the contrary, the Servicer shall, in accordance with its Customary Servicing Practices (i) collect all payments required under the terms and provisions of each 20[__]-[__] Contract included in the 20[__]-[__] SUBI Portfolio; (ii) cause each Obligor to make all payments in respect of the related 20[__]-[__] Contract included in the 20[__]-[__] SUBI Portfolio to which such Obligor is a party or otherwise obligated; and (iii) to deposit all Collections into the 20[__]-[__] SUBI Collection Account on or prior to 11:00am New York time on the related Payment Date relating to each
Collection Period except as otherwise specified herein or in Section 3.01 of the 20[__]-[__] SUBI Supplement (in connection with any failure to satisfy the Monthly Remittance Conditions), it being understood that, with respect to Sales Proceeds, the Servicer shall not be obligated to remit the actual Sales Proceeds for 20[__]-[__] Leased Vehicles removed from the Titling Trust under the Like-Kind Exchange Program, but instead such Sales Proceeds shall be held by the Qualified Intermediary and the Servicer will remit an amount equal to such Sales Proceeds with respect to each 20[__]-[__] Leased Vehicle or 20[__]-[__] Contract subject to the Like-Kind Exchange Program as provided above).  For the avoidance of any doubt, nothing in the immediately preceding sentence shall be interpreted to limit the ability of the Servicer to use

 

  

  

  

procedures in connection with new programs commenced in the ordinary course of business, whether or not implemented on a test basis.

 

Notwithstanding the provisions of Section 8.03 of the 20[__]-[__] Securitization Indenture, in accordance with the provisions of Section 7.01 of the Titling Trust Agreement, for so long as TMCC is the Servicer and the Monthly Remittance Conditions are satisfied, the Servicer will be entitled to make deposits of Collections into the 20[__]-[__] SUBI Collection Account net of amounts reimbursable or payable to the Servicer as compensation (including in respect of amounts advanced by the Servicer in respect of amounts otherwise payable to the 20[__]-[__] Securitization Trustee or to the Titling Trustee or Trust Agent) and net of amounts payable or reimbursable (and actually so paid or reimbursed directly by the
Servicer) in respect of the Titling Trust.  To the extent the Servicer makes deposits net of any such amounts, the Servicer will cause each relevant Servicer’s Certificate to correctly and accurately account for such amounts in providing all information with respect to allocations, applications and payments to be made pursuant to Section 8.03 of the 20[__]-[__] Securitization Indenture on the same basis as though such amounts were in fact deposited into the 20[__]-[__] SUBI Collection Account.  Moreover, the Servicer will, in each relevant Servicer’s Certificate, instruct the 20[__]-[__] Securitization Trustee not to make any distribution to the Servicer, Depositor or Titling Trustee to the extent that the Servicer has made any deposit net of a corresponding amount, and the 20[__]-[__] Securitization Trustee will have no obligation with respect to or
liability for following any such instruction by the Servicer.

 

The Servicer shall give the 20[__]-[__] Securitization Owner Trustee, the 20[__]-[__] Securitization Trustee and each Rating Agency written notice of the failure of the Monthly Remittance Condition (and any subsequent curing of the failed Monthly Remittance Condition) as soon as practical after the occurrence thereof.  Notwithstanding the failure of any Monthly Remittance Condition, the Servicer may utilize an alternative collection remittance schedule (which may be the remittance schedule previously utilized prior to the failure of such Monthly Remittance Condition), if the Servicer provides to the 20[__]-[__] Securitization Owner Trustee and 20[__]-[__] Securitization Trustee written confirmation from
each Rating Agency that such alternative remittance schedule will not result in the reduction or withdrawal of the rating then assigned to any Class of Notes.

 

(b)           Consistent with the foregoing, the Servicer may in its discretion (i) waive any late payment charge or similar charge, in whole or in part, in connection with delinquent payments on or deferrals or extensions of a Contract included in the 20[__]-[__] SUBI Portfolio and (ii) defer one or more payments under a 20[__]-[__] Contract or extend the Maturity Date of any 20[__]-[__] Contract.  Notwithstanding the foregoing, the Servicer may not extend the Maturity Date of any 20[__]-[__] Contract by more than six months in the aggregate or such that its Maturity Date will occur later than the last day of the Collection Period related to the Class
B Final Scheduled Payment Date; provided, however, that if the Servicer extends the Maturity Date thereof by more than [________] months in the aggregate or so that the extended Maturity Date will occur later than the last day of the Collection Period relating to the Class B Final Scheduled Payment Date, then, as the sole remedy therefor, the Servicer shall, on or prior to the Payment Date related to the Collection Period in which such extension was granted or in which the Servicer discovers or is notified that an improper extension was granted, (y) deposit into the 20[__]-[__] SUBI Collection Account an amount equal to the Securitization Value of such Contract as of the last day of the related Collection Period, and (z) reallocate such 20[__]-[__] Contract and the related 20[__]-[__] Leased Vehicle from the 20[__]-[__] SUBI Portfolio and 20[__]-[__] SUBI Sub-Trust to the UTI Portfolio
and UTI Sub-Trust.  The obligations of the 

 

  

  

  

Servicer pursuant to this Section 4.02(b) shall survive any termination of the Servicer’s obligations with respect to the 20[__]-[__] SUBI Portfolio under this 20[__]-[__] SUBI Servicing Supplement.

 

(c)           As to any Monthly Payments, Liquidation Proceeds, Insurance Proceeds, Prepayments, Payments Ahead or any other payments by or on behalf of any Obligor or otherwise (excluding any late fees or deferral fees) with respect to any 20[__]-[__] Contract or related 20[__]-[__] Leased Vehicle, including (if applicable) any proceeds of recourse payments by the originating Dealer, whether received by the Servicer through any lock box or similar mechanism used for the collection of regular periodic payments on Contracts owned or serviced by it or received directly by the Servicer at any of its servicing offices, but subject to Section 4.08 of this 20[__]-[__]
SUBI Servicing Supplement with regard to Liquidation Proceeds and Insurance Proceeds:

 

(i)           Upon receipt of any such funds (including funds initially deposited in any Servicer lock-box account), the Servicer shall deposit such funds into its operating account and shall ascertain promptly the following information: (A) the amount of each receipt, (B) the Contract number to which such receipt relates, (C) the nature of the payment (i.e., whether a Monthly Payment, other Liquidation Proceeds, a Prepayment, payment of the Contract Residual Value of the related Leased Vehicle or any other payment by or on behalf of any Obligor), (D) the date such payment is credited; and (E) that such Contract has been allocated to the 20[__]-[__] SUBI
Portfolio and 20[__]-[__] SUBI Sub-Trust.

 

(ii)           As to any such funds received by the Servicer after the date, if any, on which it ceases to satisfy the Monthly Remittance Conditions, the Servicer shall segregate all such funds from other SUBI Sub-Trusts, and deposit all such funds (net of reimbursement of any Liquidation Expenses incurred by the Servicer with respect to any 20[__]-[__] Leased Vehicle whose Liquidation Proceeds are included among such funds) into the 20[__]-[__] SUBI Collection Account maintained by the 20[__]-[__] Securitization Trustee.  Such amounts will thereafter be applied as set forth in Section 3.01(d) of the 20[__]-[__] SUBI Supplement.

 

(iii)           [Reserved].

 

(iv)           Upon the determination by the Servicer that any proceeds received by it with respect to any 20[__]-[__] Contract constitute one or more Payments Ahead, the Servicer shall, unless otherwise instructed by the Titling Trustee, (A) maintain appropriate records of such Payment Ahead so as to be able to timely apply such Payment Ahead as a Monthly Payment with respect to the applicable Contract and (B) deposit such Payment Ahead into the 20[__]-[__] SUBI Collection Account on or prior to 11:00am New York time on the related Payment Date relating to the Collection Period during which such Payment Ahead is to be applied, or, after the date, if any, on
which it ceases to satisfy the Monthly Remittance Conditions, within two Business Days of such date.

 

  

  

  

 

(d)           The Servicer shall treat all Charged-Off Vehicle Proceeds and Matured Leased Vehicle Proceeds in the manner provided for other Liquidation Proceeds in the Titling Trust Agreement and this 20[__]-[__] SUBI Supplement; provided, however, as set forth in Section 4.07 of this 20[__]-[__] SUBI Servicing Supplement, that the Servicer may be reimbursed for related Charged-Off Vehicle Expenses, Matured Leased Vehicle Expenses, other Liquidation Expenses and Insurance Costs as provided in Section 4.02(h).

 

(e)           The Servicer shall deposit into the 20[__]-[__] SUBI Collection Account on or before each Payment Date each Security Deposit that was applied in respect of a Contract during the related Collection Period and not paid to a third party or to the Servicer as Liquidation Expenses or Matured Leased Vehicle Expenses, or reimbursements in respect thereof.

 

(f)           The Servicer, on behalf of the Titling Trustee, shall establish and maintain the 20[__]-[__] SUBI Collection Account as set forth in Section 3.01(a) of the 20[__]-[__] SUBI Supplement.

 

(g)           On each Determination Date, the Servicer shall make the calculations necessary to allow the 20[__]-[__] Securitization Trustee to make allocations, applications and payments to holders of, or to the 20[__]-[__] SUBI Accounts on behalf of the holders of, the 20[__]-[__] SUBI Certificate on the related Payment Date in accordance with Section 8.03 of the 20[__]-[__] Securitization Indenture.  In connection therewith, the Servicer shall determine the amount of Titling Trust Expenses incurred or suffered during the preceding Collection Period and shall allocate such Titling Trust Expenses among the various Sub-Trusts, including the 20[__]-[__]
SUBI Sub-Trust, in good faith and so as not to disproportionately affect any Sub-Trust, generally as provided for in Section 3.04 or 7.04, as appropriate, of the Titling Trust Agreement.

 

(h)           The Servicer will be entitled to reimbursement of Matured Leased Vehicle Expenses, Charged-Off Vehicle Expenses and other Liquidation Expenses.  The Servicer is hereby authorized to net such expenses from proceeds or Collections in respect of the related 20[__]-[__] Contracts or 20[__]-[__] Leased Vehicles (including Liquidation Proceeds), or to withdraw such amounts from amounts on deposit in the 20[__]-[__] SUBI Collection Account.  The Servicer also will be entitled to reimbursement of certain payments it makes on behalf of Obligors (including payments it makes on behalf of the related Obligors of taxes, vehicle registration
charges, clearance of parking tickets and similar items and expenses and charges incurred by it in the ordinary course of servicing the 20[__]-[__] Contracts) from Collections with respect to the 20[__]-[__] Contracts (whether or not as separate payments thereof by the related Obligors) or from amounts realized upon the final disposition of 20[__]-[__] Leased Vehicles.

 

To the extent such amounts are not reimbursed prior to or at the final disposition of the related 20[__]-[__] Leased Vehicle but remain unpaid by the related Obligor, such unreimbursed amounts (together with any unpaid Monthly Payments under the related 20[__]-[__] Contract) will be treated as Matured Leased Vehicle Expenses, Charged-off Vehicle Expenses or other Liquidation Expenses, as the case may be, and the Servicer is hereby authorized to offset such reimbursable payments, expenses and charges against Matured Leased Vehicle Proceeds, Charged-off Vehicle Proceeds or other Liquidation Proceeds, as the case may be.  To the extent that during any Collection Period, Collections, Matured Leased Vehicle

 

  

  

  

Proceeds, Charged-off Vehicle Proceeds or other Liquidation Proceeds or separate payments from the Obligors in respect of such payments, charges and expenses are deposited into the 20[__]-[__] SUBI Collection Account rather than so offset by the Servicer, the Servicer shall notify the Titling Trustee and the 20[__]-[__] Securitization Trustee in writing as to any such amount and the Servicer is hereby authorized to deduct such amounts from amounts on deposit or otherwise to be deposited into the 20[__]-[__] SUBI Collection Account (the total of such amounts, without interest, the “Servicer Reimbursement”).

 

(i)           The Servicer shall account to the Titling Trustee and the 20[__]-[__] Securitization Trustee with respect to the 20[__]-[__] SUBI Sub-Trust separately from any other Sub-Trust.

 

(j)           The Servicer shall direct the Titling Trustee or the 20[__]-[__] Securitization Trustee, as applicable, to invest amounts held in the 20[__]-[__] SUBI Accounts in Eligible Investments as provided in the Titling Trust Agreement, 20[__]-[__] SUBI Supplement and the 20[__]-[__]Securitization Indenture.  The maximum permissible maturities of any such investments pursuant to this clause on any date shall be not later than the Business Day immediately preceding the Payment Date next succeeding the date of such investment, except for investments on which the Trust Agent or 20[__]-[__] Securitization Trustee, respectively, is the obligor
(including repurchase agreements as to which it, in its commercial capacity, is liable as principal), or that are TMCC Demand Notes, which may mature on such next succeeding Payment Date.

 

(k)           In the event the Servicer provides to the UTI Beneficiary, the Titling Trustee and the 20[__]-[__] Securitization Trustee a letter from each Rating Agency to the effect that the utilization by the Servicer of a remittance schedule differing from those contemplated herein or in the 20[__]-[__] SUBI Supplement with respect to Collections to be deposited in the 20[__]-[__] SUBI Collection Account will not result in a qualification, downgrading or withdrawal of the then-current rating assigned to the Rated Certificates by such Rating Agency, (i) this 20[__]-[__] SUBI Servicing Supplement (and any corresponding or related Sections in the 20[__]-[__]
SUBI Supplement) may be so modified without the consent of any Noteholders and (ii) the Servicer may remit such Collections to the 20[__]-[__] SUBI Collection Account in accordance with that alternative remittance schedule.

 

(l)           The parties hereto acknowledge that the Titling Trustee, on behalf of the Titling Trust, has made a complete transfer to the 20[__]-[__] Securitization Trustee of the Collections in respect of the 20[__]-[__] SUBI Assets contained in all accounts maintained by the Titling Trustee and, except as provided in this 20[__]-[__] SUBI Servicing Supplement, the 20[__]-[__] SUBI Supplement and the 20[__]-[__] Securitization Indenture, neither the Titling Trustee nor the Servicer has any right to direct such funds to a third party or to receive such funds (other than to receive such funds pursuant to an investment thereof in Eligible Investments on which
such party is the obligor).

 

(m)           In the event of a sale, disposition or other liquidation of the 20[__]-[__] SUBI Certificate and the other property of the 20[__]-[__] Securitization Trust pursuant to the terms of the 20[__]-[__] Securitization Indenture, the Servicer shall allocate the net proceeds thereof as set forth in the 20[__]-[__] Securitization Indenture.

 

  

  

  

 

(n)           The Servicer shall be required to repurchase and reallocate a 20[__]-[__] Leased Vehicle and the related 20[__]-[__] Contract from the 20[__]-[__] SUBI and remit to the related 20[__]-[__] SUBI Collection Account a Reallocation Payment for such 20[__]-[__] Leased Vehicle and 20[__]-[__] Contract if the related Obligor moves to a state that is not a Trust State and such state does not become a Trust State within 90 days after the Servicer has become aware of such move.  The Reallocation Payment must be made by the Servicer on or prior to the Payment Date following the end of such 90-day period.

 

4.03           Records.

 

(a)           As to any proceeds or other receipts with respect to any Trust Asset, including without limitation Monthly Payments, Prepayments, Liquidation Proceeds and any other payments by or on behalf of any Obligor or otherwise with respect to any 20[__]-[__] Contract or 20[__]-[__] Leased Vehicle, the Servicer shall maintain or cause to be maintained such computer and manual records with respect to all such proceeds and other receipts in accordance with its Customary Servicing Practices.

 

(b)           The Servicer shall retain or cause to be retained all data (including, without limitation, computerized records), together with all operating software and appropriate documentation, relating directly to or maintained in connection with the servicing of the 20[__]-[__] Contracts (the “Contract Records”) consistent with its then-applicable retention policies or applicable law.  The Servicer shall provide or cause to be provided to the Titling Trustee, on behalf of the Titling Trust, upon its request, copies of all such data and appropriate documentation retained by the Servicer at all reasonable times and upon reasonable
notice.  The Servicer shall promptly report to the Titling Trustee, on behalf of the Titling Trust, any failure on its part to maintain the Contract Records as herein provided and promptly take appropriate action to remedy any such failure.

 

(c)           Upon the occurrence and during the continuance of a Servicer Default or if the rights of the Servicer with respect to the 20[__]-[__] SUBI Portfolio are terminated in accordance with Section 6.01(b) of this 20[__]-[__] SUBI Servicing Supplement or, if this 20[__]-[__] SUBI Servicing Supplement is terminated pursuant to Section 7.01, the Servicer shall, on demand of the Titling Trustee, on behalf of the Titling Trust (either at the request of the 20[__]-[__] Securitization Trustee or, as provided in Section 6.01(b) of this 20[__]-[__] SUBI Servicing Supplement, upon demand of the Holders of Notes evidencing not less than a majority of the
Controlling Class of Notes, deliver to the 20[__]-[__] Securitization Trustee all such data, operating software and appropriate documentation necessary for the servicing of the 20[__]-[__] Contracts, including but not limited to the related Contract Documents and Title Documents, all moneys collected by it and required to be deposited in any 20[__]-[__] SUBI Account on behalf of the Titling Trust, or in the 20[__]-[__] SUBI Collection Account or the 20[__]-[__] SUBI Reserve Account on behalf of the 20[__]-[__] Securitization Trust, all Security Deposits with respect to 20[__]-[__] Contracts, and any 20[__]-[__] Leased Vehicle in the possession of the Servicer and that has not yet been sold or otherwise disposed of.  In addition to delivering such data, operating software and appropriate documentation and moneys, if a new servicer is appointed, the Servicer shall use its
commercially reasonable efforts to effect the orderly and efficient transfer of the servicing of the 20[__]-[__] Contracts to the party that will be assuming responsibility for such servicing, including, without limitation, directing Obligors to remit 

 

  

  

  

payments in respect of such Contracts to an account or address designated by the Titling Trustee or such new servicer.

 

4.04           Collection and Application of Security Deposits.

 

Subject to Section 4.03I of this 20[__]-[__] SUBI Servicing Supplement, the Servicer shall retain each Security Deposit remitted to it (or deemed remitted to it) as agent and bailee for the Obligor until such time as the Titling Trust, the Titling Trustee on behalf of the Titling Trust, or the Servicer may lawfully and under the terms of the related 20[__]-[__] Contract apply such Security Deposit against unpaid amounts owed under the 20[__]-[__] Contract, damages to the related 20[__]-[__] Leased Vehicle, excess wear and tear charges, expenses in connection with the refurbishment and disposal of the related 20[__]-[__] Leased Vehicle or against fees, charges, payments or expenses advanced or paid by the Servicer in
accordance with applicable law and its Customary Servicing Practices and the related 20[__]-[__] Contract, from and after which time such amounts will be 20[__]-[__] SUBI Assets, subject to any reimbursement due to the Servicer.  To the extent any Security Deposit or portion thereof is to be treated as proceeds of a 20[__]-[__] Contract or 20[__]-[__] Leased Vehicle (because such 20[__]-[__] Contract has become a Charged-Off Contract), the related Security Deposit or such portion shall be deemed to be Liquidation Proceeds.  On or prior to each Payment Date, or otherwise as provided in Section 4.02I(ii) of this 20[__]-[__] SUBI Servicing Supplement, the Servicer shall deposit into the 20[__]-[__] SUBI Collection Account each Security Deposit that became Liquidation Proceeds during the related Collection Period; otherwise, each Security Deposit related to a 20[__]-[__]
Contract, after deduction for amounts applied towards the payment or reimbursement of any amount described above, shall be returned to the related Obligor by the Servicer upon termination of such 20[__]-[__] Contract.

 

4.05           Appointment of Subservicer.

 

(a)           The Servicer may at any time after the execution of this 20[__]-[__] SUBI Servicing Supplement appoint a Subservicer to perform all or any portion of its obligations as Servicer hereunder; provided, however, that the Servicer shall remain obligated and be liable to the 20[__]-[__] Securitization Trust, the 20[__]-[__] Securitization Owner Trustee, the 20[__]-[__] Securitization Trustee, the Certificateholder and the Noteholders for the servicing and administering of the 20[__]-[__] Contracts and 20[__]-[__] Leased Vehicles in accordance with the provisions hereof without diminution of such obligation and liability by virtue of the appointment of
such Subservicer and to the same extent and under the same terms and conditions as if the Servicer alone were servicing and administering the 20[__]-[__] Contracts and 20[__]-[__] Leased Vehicles.  The fees and expenses of the Subservicer shall be as agreed between the Servicer and its Subservicer from time to time, and none of the the 20[__]-[__] Securitization Trust, the 20[__]-[__] Securitization Owner Trustee, the 20[__]-[__] Securitization Trustee, the Certificateholder or the Noteholders shall have any responsibility therefor.

 

(b)           The Servicer shall cause any Subservicer used by the Servicer (or by any Subservicer) for the benefit of the 20[__]-[__] Securitization Trust to comply with the reporting and compliance provisions of this 20[__]-[__] SUBI Servicing Supplement to the same extent as if such Subservicer were the Servicer, and to provide the information required with respect to such Subservicer as is required to file all required reports with the Commission.  The Servicer 

  

  

  

shall be responsible for obtaining from each Subservicer and delivering to the 20[__]-[__] Securitization Trust and the Administrator any servicer compliance statement required to be delivered by such Subservicer under Section 5.02, any assessment of compliance and attestation required to be delivered by such Subservicer under Section 5.03 and any certification required to be delivered to the Person that will be responsible for signing the Sarbanes Certification under Section 5.03(a)(iv) as and when required to be delivered.

 

(c)           The Servicer shall promptly upon request provide to the 20[__]-[__] Securitization Trust or the Administrator, acting on behalf of the 20[__]-[__] Securitization Trust, a written description (in form and substance satisfactory to the 20[__]-[__] Securitization Trust and the Administrator) of the role and function of each Subcontractor utilized by the Servicer or any Subservicer, specifying (i) the identity of each such Subcontractor, (ii) which, if any, of such Subcontractors are “participating in the servicing function” within the meaning of Item 1122 of Regulation AB, and (iii) which, if any, elements of the Servicing
Criteria will be addressed in assessments of compliance provided by each Subcontractor identified pursuant to clause (ii) of this paragraph.

 

(d)           As a condition to the utilization of any Subcontractor determined to be “participating in the servicing function” within the meaning of Item 1122 of Regulation AB, the Servicer shall cause any such Subcontractor used by the Servicer (or by any Subservicer) for the benefit of the 20[__]-[__] Securitization Trust and the Depositor to comply with the reporting and compliance provisions of this 20[__]-[__] SUBI Servicing Supplement to the same extent as if such Subcontractor were the Servicer.  The Servicer shall be responsible for obtaining from each Subcontractor and delivering to the 20[__]-[__] Securitization Trust and the
Administrator any assessment of compliance and attestation required to be delivered by such Subcontractor, in each case as and when required to be delivered.

 

4.06           Payment of Certain Fees and Expenses; No Offset.

 

(a)           [Reserved].

 

(b)           Prior to the termination of the Servicer’s rights and obligations with respect to the 20[__]-[__] SUBI Sub-Trust and thereafter if such termination results from a Servicer Default, the obligations of the Servicer with respect to the 20[__]-[__] SUBI Sub-Trust shall not be subject to any defense, counterclaim or right of offset that the Servicer has or may have against any UTI Beneficiary, the Titling Trustee on behalf of the Titling Trust, or the 20[__]-[__] Securitization Trustee, whether in respect of this 20[__]-[__] SUBI Servicing Supplement, the 20[__]-[__] SUBI Supplement, any Securitization Trust Document, any 20[__]-[__] Contract, any
related Contract Document, any 20[__]-[__] Leased Vehicle or otherwise.

 

4.07           Servicing Compensation.  As compensation for the performance of its obligations hereunder, the Servicer shall be entitled to receive on each Payment Date, out of Available Collections and in accordance with the priorities of payments specified in Section 8.03 of the 20[__]-[__] Securitization Indenture, the Total Servicing Fee.  The Basic Servicing Fee in respect of a Collection Period shall be calculated based on a 360-day year comprised of twelve 30-day months.  Except to the extent otherwise provided herein, the Servicer shall be required to pay all
expenses incurred by it in connection with its activities under this 20[__]-[__] SUBI 

 

  

  

  

Servicing Supplement (including fees and disbursements of the 20[__] Securitization Owner Trustee, the 20[__] Securitization Trustee, the Administrator and the independent accountants, transition expenses as provided in Section 6.03 hereof, taxes imposed on the Servicer, expenses incurred by the Servicer in connection with its preparation of reports hereunder, expenses incurred by the Indenture Trustee in connection with a sale or liquidation of the Trust Estate under Section 5.04(c) of the 20[__] Securitization Indenture and all other fees and expenses not expressly stated under this 20[__]-[__] SUBI Servicing Supplement to be for the account of the Certificateholder).  The Servicer shall also be
entitled to any late fees, deferral fees and other administrative fees or similar charges paid by any Obligor pursuant to a 20[__]-[__] Contract during the related Collection Period, and the Servicer may be reimbursed for advancing certain Administrative Expenses as provided in this 20[__]-[__] SUBI Servicing Supplement.  Further, as additional servicing compensation with regard to the 20[__]-[__] SUBI Sub-Trust, the Servicer also shall receive income as and to the extent provided in the 20[__]-[__] Securitization Indenture.

 

Except to the extent otherwise provided herein, the Servicer shall pay all expenses incurred by it in connection with its servicing activities hereunder and shall not be entitled to reimbursement of such expenses except to the extent that such expenses (A) constitute Charged-Off Vehicle Expenses, Matured Lease Vehicle Expenses or other Liquidation Expenses, (B) as provided in Section 4.12 of this 20[__]-[__] SUBI Servicing Supplement, are recoverable under an applicable Insurance Policy, or (C) constitute repayments from the related Obligor, as provided in Section 4.08 of this 20[__]-[__] SUBI Servicing Supplement.  For so long as there shall be only one Servicer for the Titling Trust, the Total Servicing
Fee shall be deemed to be an expense incurred with respect to the Titling Trust Assets generally; if at any time the Servicer shall only service some (but not all) Sub-Trusts, the Total Servicing Fee shall be deemed to be an expense incurred with respect to that discrete group of Titling Trust Assets contained in the Sub-Trusts the Servicer then services.

 

4.08           Repossession and Sale of Leased Vehicles.  In accordance with the procedures used by the Servicer in respect of any comparable leases and leased vehicles serviced by it for its own account or the accounts of its Affiliates (including procedures used in connection with new programs commenced in the ordinary course of business, whether or not implemented on a test basis), the Servicer shall use its commercially reasonable efforts to (i) repossess the Defaulted Vehicle related to any 20[__]-[__] Contract to the same extent the Servicer would repossess a vehicle pursuant to a
lease contract that is property of the Servicer or (ii) otherwise take possession of any 20[__]-[__] Leased Vehicle related to any 20[__]-[__] Contract to the same extent the Servicer would take possession of a vehicle pursuant to a lease contract that is property of the Servicer.

 

The Servicer shall, in accordance with the standards set forth in the immediately preceding paragraph:

 

(a)           follow such practices and procedures as it shall deem necessary or advisable in its servicing of closed-end automobile and light duty truck leases, which may include reasonable efforts to realize upon any recourse to Dealers, consigning a 20[__]-[__] Leased Vehicle to a motor vehicle dealer for resale or selling a 20[__]-[__] Leased Vehicle at public or private sale; and

 

  

  

  

 

(b)           sell or otherwise dispose of each 20[__]-[__] Leased Vehicle that is repossessed in accordance with the related 20[__]-[__] Contract or that becomes a Matured Vehicle for the 20[__]-[__] SUBI Sub-Trust and, if such related 20[__]-[__] Contract relates to a Defaulted Vehicle, shall commence and prosecute any proceedings in respect of such 20[__]-[__] Contract (and such 20[__]-[__] Leased Vehicle) in its own name or, if the Servicer deems it necessary, in the name of the Titling Trustee, on behalf of the Titling Trust.

 

The obligations of the Servicer under this Section are subject to the provision that, in the event of damage to a 20[__]-[__] Leased Vehicle from a cause for which the Obligor under the related 20[__]-[__] Contract was not required to obtain casualty insurance or maintain such insurance in full force and effect, the Servicer shall not be required to expend its own funds in repairing such 20[__]-[__] Leased Vehicle unless it shall reasonably determine that such restoration will increase Liquidation Proceeds (net of Liquidation Expenses) of the related 20[__]-[__] Contract by at least an equivalent amount.  The Servicer shall only expend funds in connection with the repossession and/or sale of any
20[__]-[__] Leased Vehicle to the extent that it would do so in connection with the sale or disposition of vehicles subject to lease contracts that are its own property. The Servicer shall be responsible for all other costs and expenses incurred by it in connection with any action taken in respect of a 20[__]-[__] Contract or the related 20[__]-[__] Leased Vehicle; provided, however, that it shall be entitled to reimbursement of such costs and expenses to the extent they constitute Charged-Off Vehicle Expenses, Matured Leased Vehicle Expenses or other Liquidation Expenses or expenses recoverable under an applicable Insurance Policy.  All Charged-off Vehicle Proceeds, Matured Leased Vehicle Proceeds or other Liquidation Proceeds and Insurance Proceeds shall be deposited and transferred as provided in Section 4.02 of this 20[__]-[__] Servicing
Supplement.  Notwithstanding the foregoing, in the event the Servicer determines that, in accordance with its normal servicing procedures, it will apply the Insurance Proceeds with respect to a damaged or destroyed Leased Vehicle to the substitution of another vehicle (for which the 20[__]-[__] Contract will remain in force, but will relate to such substituted vehicle), the Servicer shall be permitted to so apply such Insurance Proceeds and shall not report or treat such funds as Insurance Proceeds hereunder.  Any such substituted vehicle shall thereafter be the relevant 20[__]-[__] Leased Vehicle and such vehicle shall be the “related Leased Vehicle” or “related 20[__]-[__] Leased Vehicle” with respect to such 20[__]-[__] Contract, for all purposes of the 20[__]-[__] SUBI Sub-Trust.

 

Notwithstanding the foregoing, prior to transferring any such funds out of its operating account, the Servicer shall first deduct therefrom any unreimbursed Charged-Off Vehicle Expenses, Matured Leased Vehicle Expenses or other Liquidation Expenses and expenses recoverable under an applicable Insurance Policy.  In connection with this Section, the Titling Trustee, on behalf of the Titling Trust, shall grant to the Servicer a power of attorney in the form attached as Exhibit B with regard to the 20[__]-[__] Leased Vehicles, with full power of substitution.  The Servicer shall not conduct such a substitution other than in the ordinary course of its business and on substantially the same terms as
are consistent with its past practices.

 

The Servicer is not required hereby to deduct from Charged-Off Vehicle Proceeds, Matured Leased Vehicle Proceeds or other Liquidation Proceeds or Insurance Proceeds with respect to any particular 20[__]-[__] Leased Vehicle all related unreimbursed Charged-Off Vehicle Expenses, Matured Leased Vehicle Expenses or other Liquidation Expenses or expenses recoverable under an applicable Insurance Policy prior to transferring such 

 

  

  

  

funds out of its operating account.  Such expenses may instead be reimbursed as provided in Section 4.02(h) of this 20[__]-[__] SUBI Servicing Supplement.

 

Immediately prior to the sale or disposition of a Matured Leased Vehicle or a Defaulted Vehicle, the Servicer (so long as TMCC is the Servicer) may reallocate such Matured Leased Vehicle or Defaulted Vehicle from the 20[__]-[__] SUBI to the UTI for purposes of implementing the Servicer’s Like-Kind Exchange Program.  In connection with such reallocation, the Servicer will cause to be deposited into the 20[__]-[__] SUBI Collection Account an amount equal to Sales Proceeds (in lieu of actual Sales Proceeds) no later than two Business Days after such reallocation, or, if the Monthly Remittance Condition is met, the Servicer shall be permitted to retain such amounts until such amounts are required to be
disbursed on the next Payment Date.  Upon receipt of an amount equal to Sales Proceeds with respect to each such Matured Leased Vehicle or Defaulted Vehicle, the 20[__]-[__] SUBI shall have no claim against or interest in such Matured Leased Vehicle or Defaulted Vehicle.

 

Pending deposit into the 20[__]-[__] SUBI Collection Account, Collections may be employed by the Servicer at its own risk and for its own benefit and shall not be segregated from its own funds; provided, that the Servicer shall be permitted to apply Sales Proceeds for the acquisitions of leases and vehicles through the Like-Kind Exchange Program, in which case it shall remit an amount equal to Sales Proceeds with respect to each 20[__]-[__] Leased Vehicle or 20[__]-[__] Contract subject to the Like-Kind Exchange Program no later than two Business Days after such reallocation, or, if the Monthly Remittance Condition is met, the Servicer shall be permitted to retain such amount received during a Collection Period
until 11:00am New York time on the related Payment Date.  Notwithstanding anything to the contrary set forth herein or in the Titling Trust Agreement, amounts in the escrow account established pursuant to the Like-Kind Exchange Program shall not be subject to any lien so long as there is no Event of Default under the 20[__]-[__] Securitization Indenture.

 

4.09           Servicer to Act on Behalf of Titling Trust.

 

(a)           In order to facilitate the servicing of the 20[__]-[__] SUBI Sub-Trust by the Servicer, the Titling Trustee, on behalf of the Titling Trust, hereby appoints the Servicer as its agent, bailee and custodian to retain possession of the related Contract Documents, Title Documents and any other related items that from time to time come into possession of the Servicer, and the Servicer hereby accepts such appointment.  The parties hereto expressly acknowledge and agree that the Servicer may appoint a third party to act as the agent of the Servicer to maintain possession of such documents, electronic files or instruments as contemplated by
Sections 3.01(v) and 3.03(b) of this 20[__]-[__] SUBI Servicing Supplement; provided, that the Servicer may appoint one or more agents to act as subcustodians of such Contract Documents, Title Documents and any other related items so long as the Servicer remains primarily responsible for their safekeeping, provided further, [that the Servicer shall not transmit or transfer the authoritative copy of the Contract or Certificate of Title that is in the form of electronic chattel paper to another person unless such person is able to and agrees to maintain the Servicer’s “control” (as such term is used in Section 9-105 of the UCC) over the authoritative copy or the control of any authorized assignee of the Servicer].

 

  

  

  

 

(b)           The Servicer shall maintain each such Contract Document and Title Document at its offices identified on the attached Schedule I, or at such other office as shall be specified by the Servicer to the Titling Trustee on 30 days’ prior notice.  The Servicer shall promptly report to the Titling Trustee any failure on its part to retain possession of any such Contract Documents or Title Documents and promptly take appropriate action to remedy any such failure.

 

(c)           Upon written instructions from the Titling Trustee, on behalf of the Titling Trust, or the 20[__]-[__] Securitization Trustee setting forth a reasonable basis therefor, or in the exercise of its duties and powers hereunder, the Servicer shall release any Contract Document, Title Document, or other related item to the Titling Trustee or its agent or designee, as the case may be, at such place or places as the Titling Trustee or the 20[__]-[__] Securitization Trustee, as applicable, may designate, as soon as practicable.  The Servicer shall not be responsible for any loss occasioned by the failure of the Titling Trustee or the 20[__]-[__]
Securitization Trustee to return any document or any delay in doing so.

 

(d)           The Servicer shall be deemed to have received proper instructions with respect to any such Contract Document, Title Document, any other related item or any Contract Record, upon its receipt of written instructions by a Responsible Officer of the Titling Trustee or the 20[__]-[__] Securitization Trustee.  A certified copy of a bylaw or a resolution of the Board of Directors of the Titling Trustee shall constitute conclusive evidence of the authority of any such Responsible Officer of the Titling Trustee to act and shall be considered in full force and effect until receipt by the Servicer of written notice to the contrary given by the
Titling Trustee.

 

(e)           The Servicer shall identify from time to time all (i) periodic sales and use tax or property (real or personal) tax reports, (ii) periodic renewals of licenses and permits, (iii) periodic renewals of qualification to act as a trust and a business trust and (iv) other periodic governmental filing, registration or approvals (collectively, “Filings”) arising with respect to or required of the  Titling Trust or the Titling Trustee, including (in the case of clauses (ii) and (iv)) such licenses, permits, and other Filings as are required for the Titling Trust or the Titling Trustee to accept assignments of 20[__]-[__] Contracts and
to be identified as the owner of 20[__]-[__] Leased Vehicles on their Certificates of Title.  The Servicer shall also identify any surety bonds or other ancillary undertakings required of the Titling Trust or the Titling Trustee in respect of any Filing.  The Servicer shall timely prepare and file, or cause to be filed, with the cooperation of the Titling Trustee, on behalf of the Titling Trustee, or the Titling Trust with the appropriate Person each Filing and each such ancillary undertaking with a copy to the Titling Trustee. In connection with this Section, the Titling Trustee, on behalf of the Titling Trust, shall grant to the Servicer such authority, including without limitation any necessary power of attorney in the form attached as Exhibit B, as it may require in order to effect each such Filing and ancillary undertaking.  Should the Servicer at any
time receive notice, or have actual knowledge, of any non-compliance with any Filing requirement, it shall promptly so notify the Titling Trustee.

 

(f)           The Titling Trustee shall deliver to the Servicer and the 20[__]-[__] Securitization Trustee, promptly upon their execution and delivery by the parties thereto, each amendment and supplement to the Titling 

 

  

  

  

Trust Agreement as any such amendment and supplement relates to the 20[__]-[__] SUBI Sub-Trust.  The Servicer shall not act contrary to any provision of the Titling Trust Agreement as it relates to the 20[__]-[__] SUBI Sub-Trust, as so amended or supplemented.

 

(g)           The Servicer as custodian shall indemnify the 20[__]-[__] Securitization Trust, the 20[__]-[__] Securitization Owner Trustee and the 20[__]-[__] Securitization Trustee and each of their respective officers, directors, employees and agents for any and all liabilities, obligations, losses, compensatory damages, payments, costs or expenses of any kind whatsoever that may be imposed on, incurred by or asserted against any of them as the result of any improper act or omission in any way relating to the maintenance and custody by the Servicer as custodian of the Contract Documents and Certificates of Title in accordance with the terms of this 20[__]-[__]
SUBI Servicing Supplement; provided, however, that the Servicer shall not be liable to the 20[__]-[__] Securitization Owner Trustee for any portion of any such amount resulting from the willful misfeasance, bad faith or gross negligence of the 20[__]-[__] Securitization Owner Trustee, and the Servicer shall not be liable to the 20[__]-[__] Securitization Trustee for any portion of any such amount resulting from the willful misfeasance, bad faith or negligence of the 20[__]-[__] Securitization Trustee.

 

(h)           The Servicer’s appointment as custodian shall become effective as of the date hereof, and shall continue in full force and effect until terminated pursuant to this Section.  If TMCC shall resign as Servicer in accordance with the provisions of this 20[__]-[__] SUBI Servicing Supplement or if all of the rights and obligations of any Servicer shall have been terminated under Section 6.01, the appointment of TMCC (as Servicer) as custodian shall be terminated hereunder without further action by the 20[__]-[__] Securitization Trustee, 20[__]-[__] Securitization Owner Trustee, Noteholders or the Certificateholder. The 20[__]-[__]
Securitization Trustee or, with the consent of the 20[__]-[__] Securitization Trustee, the 20[__]-[__] Securitization Owner Trustee may terminate the Servicer’s appointment as custodian, with cause, at any time upon written notification to the Servicer.  The 20[__]-[__] Securitization Owner Trustee, 20[__]-[__] Securitization Trustee or Noteholders may terminate the Servicer as custodian hereunder in the same manner as the 20[__]-[__] Securitization Owner Trustee, 20[__]-[__] Securitization Trustee or Noteholders may terminate the rights and obligations of the Servicer under Section 6.01.  As soon as practicable after any termination of such appointment, the Servicer shall deliver the Contract Documents and Certificates of Title to the 20[__]-[__] Securitization Trustee or the agent thereof at such place or places as the 20[__]-[__] Securitization Trustee may
reasonably designate

 

4.10           Indemnities of Servicer.  The Servicer shall be liable in accordance herewith only to the extent of the obligations specifically undertaken by the Servicer under this 20[__]-[__] SUBI Servicing Supplement:

 

(a)           The Servicer shall indemnify, defend and hold harmless the Titling Trustee, the 20[__]-[__] Securitization Trust, the 20[__]-[__] Securitization Owner Trustee, the 20[__]-[__] Securitization Trustee, the Paying Agent, the Note Registrar, the Securities Intermediary, the Noteholders and the Certificateholder and any of the officers, directors, employees and agents of the each such party 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 Servicer or any Affiliate
thereof of a 20[__]-[__] Leased Vehicle.

  

  

  

 

(b)           The Servicer shall indemnify, defend and hold harmless the Titling Trustee, the 20[__]-[__] Securitization Owner Trustee, the 20[__]-[__] Securitization Trustee, the Paying Agent and the Note Registrar and their respective officers, directors, employees and agents from and against all costs, expenses, losses, claims, damages and liabilities arising out of or incurred in connection with the acceptance or performance of the trusts and duties herein and in the 20[__]-[__] Securitization Trust Agreement contained, in the case of the 20[__]-[__] Securitization Owner Trustee, and in the Indenture contained, in the case of the 20[__]-[__] Securitization
Trustee, the Paying Agent and the Note Registrar, except to the extent that such cost, expense, loss, claim, damage or liability: (i) in the case of the 20[__]-[__] Securitization Owner Trustee, the 20[__]-[__] Securitization Trustee, the Titling Trustee, the Paying Agent and the Note Registrar, shall be due to the willful misfeasance, bad faith or negligence (except for errors in judgment) of such party; or (ii) in the case of the 20[__]-[__] Securitization Owner Trustee, shall arise from the breach by the 20[__]-[__] Securitization Owner Trustee of any of its representations or warranties set forth in Section 7.03 of the 20[__]-[__] Securitization Trust Agreement.

 

(c)           The Servicer shall indemnify, defend and hold harmless the Titling Trustee, the 20[__]-[__] Securitization Trust, the 20[__]-[__] Securitization Owner Trustee, the 20[__]-[__] Securitization Trustee, the Securities Intermediary, the Certificateholder and the Noteholders and any of the officers, directors, employees and agents of the Titling Trustee, the 20[__]-[__] Securitization Trust, the 20[__]-[__] Securitization Owner Trustee, the 20[__]-[__] Securitization Trustee, the Securities Intermediary, the Certificateholder and the Noteholders from and against any and all costs, expenses, losses, claims, damages and liabilities (including without
limitation reasonable fees and expenses of counsel) to the extent that such cost, expense, loss, claim, damage or liability arose out of, or is imposed upon any such Person through, the negligence, willful misfeasance or bad faith of the Servicer in the performance of its duties under this 20[__]-[__] SUBI Servicing Supplement or by reason of reckless disregard of its obligations and duties under this 20[__]-[__] SUBI Servicing Supplement, including those that may be incurred by any such indemnified party as a result of any act or omission by the Servicer in connection with its maintenance and custody of the Contract Documents, Title Documents, and Contract Records with respect to 20[__]-[__] Contracts and 20[__]-[__] Leased Vehicles.

 

(d)           Promptly after receipt by a party indemnified under this Section 4.10 or Section 5.06 (an “Indemnified Party”) of notice of the commencement of any action, such Indemnified Party will, if a claim in respect thereof is to be made against the party providing indemnification under this Section 4.10 or 5.06 (an “Indemnifying Party”), notify such Indemnifying Party of the commencement thereof.  In case any such action is brought against any Indemnified Party under this Section 4.10 or 5.06 and it notifies the Indemnifying Party of the commencement thereof, the Indemnifying Party will assume the defense thereof, with
counsel reasonably satisfactory to such Indemnified Party (who may, unless there is, as evidenced by an opinion of counsel to the Indemnified Party stating that there is an unwaivable conflict of interest, be counsel to the Indemnifying Party), and the Indemnifying Party will not be liable to such Indemnified Party under this Section for any legal or other expenses subsequently incurred by such Indemnified Party in connection with the defense thereof, other than reasonable costs of investigation.  The obligations set forth in this Section 4.10 and Section 5.06 shall survive the termination of this 20[__]-[__] SUBI Servicing Supplement or the resignation or removal of the Servicer, the 20[__]-[__] Securitization Owner Trustee, the 20[__]-[__] Securitization Trustee and shall 

 

  

  

  

include reasonable fees and expenses of counsel and expenses of litigation.  If the Servicer shall have made any indemnity payments pursuant to this Section and the Person to or on behalf of whom such payments are made thereafter collects any of such amounts from others, such Person shall promptly repay such amounts to the Servicer, without interest.

 

For purposes of this Section, in the event of the termination of the rights and obligations of the  Servicer (generally or with respect to the 20[__]-[__] SUBI Sub-Trust) or the 20[__]-[__] Securitization Trustee, or a resignation by such Servicer pursuant to this 20[__]-[__] SUBI Servicing Supplement, and such Servicer shall be deemed to be the Servicer pending appointment of a successor Servicer (other than the 20[__]-[__] Securitization Trustee) pursuant to Section 6.03.

 

4.11           Third Party Claims.  The Servicer shall immediately notify the Depositor (in the event that TMCC is not acting as the Servicer hereunder), the Titling Trustee, on behalf of the Titling Trust, the 20[__]-[__] Securitization Trustee, on behalf of the 20[__]-[__] Securitization Trust, and any other holder of the 20[__]-[__] SUBI Certificate upon its learning that a claim of whatever kind that would, if proven or converted to judgment, have a material adverse impact on any UTI Beneficiary, the Depositor, the Titling Trustee, the Titling Trust, the 20[__]-[__] Securitization
Trust, the 20[__]-[__] Securitization Trustee, the Noteholders, any 20[__]-[__] SUBI Asset or the Servicer is being made by a third party with respect to any 20[__]-[__] Contract or 20[__]-[__] Leased Vehicle (whether or not included in the 20[__]-[__] SUBI Sub-Trust) or the servicing thereof or with respect to any other Titling Trust Asset (whether or not constituting a 20[__]-[__] SUBI Asset).

 

4.12           Insurance Policies.  So long as any 20[__]-[__] SUBI Certificates are outstanding, the Servicer will maintain and pay when due all premiums with respect to, and the Servicer may not terminate or cause the termination of the following (all premiums with respect to which shall constitute Administrative Expenses):  (i) the Contingent and Excess Liability Insurance Policies unless (A) one or more replacement insurance policies or binder(s) is obtained providing coverage against third party claims that may be raised against the Titling Trustee, on behalf of the Titling
Trust, with respect to any 20[__]-[__] Leased Vehicle included in the 20[__]-[__] SUBI Sub-Trust in an amount at least equal to $10 million per claim, not subject to any annual or aggregate cap (which policy or policies may be a blanket insurance policy or policies covering the Servicer and one or more of its Affiliates), or (B) each Rating Agency has delivered a letter to the 20[__]-[__] Securitization Trustee to the effect that the obtaining of any such replacement insurance policy or policies, in and of itself, will not cause its then-current rating of any of the Rated Certificates to be qualified, reduced or withdrawn.  On or before December 31 of each year, the Servicer shall provide to the Titling Trustee one or more Officer’s Certificates (or certification by a duly authorized signatory of the Servicer) certifying that the policies it is required to maintain
pursuant to this Section remain in full force and effect.  The obligations of the Servicer pursuant to this Section shall survive any termination of the Servicer’s obligations with respect to the 20[__]-[__] SUBI Sub-Trust under this 20[__]-[__] SUBI Servicing Supplement.

 

4.13           Servicer Not to Resign; Assignment.

 

  

  

  

 

(a)           Subject to the provisions of Section 4.15, TMCC shall not resign from the obligations and duties hereby imposed on it as Servicer under this 20[__]-[__] SUBI Servicing Supplement except upon a determination that the performance of its duties under this 20[__]-[__] SUBI Servicing Supplement shall no longer be permissible under applicable law.  Notice of any such determination permitting the resignation of TMCC shall be communicated to the 20[__]-[__] Securitization Owner Trustee, the 20[__]-[__] Securitization Trustee and each Rating Agency 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 20[__]-[__] Securitization Owner Trustee and the 20[__]-[__] Securitization Trustee concurrently with or promptly after such notice.  No such resignation shall become effective until the 20[__]-[__] Securitization Trustee or a successor Servicer shall have (i) assumed the responsibilities and obligations of TMCC in accordance with Section 8.02 and (ii) become the Administrator under the 20[__]-[__] Administration Agreement in accordance with Section 8 of such Agreement.  No such resignation shall become effective unless and until a new servicer is willing to service the 20[__]-[__] Contracts and enters into a servicing agreement with the Titling Trustee, on behalf of the Titling Trust, such agreement to have
substantially the same provisions as this Servicing Agreement except as provided in Section 4.13(b).  The Titling Trustee, on behalf of the Titling Trust, shall not unreasonably fail to consent to such a servicing agreement.

 

(b)           If the Servicer resigns in the circumstances contemplated by clause (a) above, in addition to the requirements set forth therein, the Opinion of Counsel required thereby also shall be reasonably satisfactory to the 20[__]-[__] Securitization Trustee.  The 20[__]-[__] Securitization Trustee shall not unreasonably fail to consent to a servicing agreement with a new servicer that proposes to enter into a servicing agreement that meets the standards required by this 20[__]-[__] SUBI Servicing Supplement.  No such resignation shall affect the obligation of the Servicer to remit moneys to the 20[__]-[__] SUBI Collection Account (in
lieu of unrecoverable insurance proceeds pursuant to Section 4.14), or the obligations of the Servicer pursuant to Sections 3.03(a), 4.04 (until such obligations are transferred to a successor Servicer pursuant to the terms of this 20[__]-[__] SUBI Servicing Supplement), 4.06(a), 4.10 or 4.12 of this 20[__]-[__] SUBI Servicing Supplement.  No successor Servicer shall be required to undertake any of the foregoing, other than (i) the obligations set forth in Section 4.04, to the extent that such obligations are transferred to a successor Servicer pursuant to Section 6.01 of this 20[__]-[__] SUBI Servicing Supplement, (ii) the obligation set forth in Section 4.06(a) of this 20[__]-[__] SUBI Servicing Supplement (which shall remain a joint and several obligation of the initial Servicer and any successor Servicer) and (iii) the obligations set forth in Section 4.10, which provision
shall not require indemnification by any successor Servicer for the actions of the Servicer under this 20[__]-[__] SUBI Servicing Supplement.  The Titling Trustee shall give prompt notice to each Rating Agency of any such resignation of the Servicer, and the Titling Trustee and 20[__]-[__] Securitization Trustee and of the proposed substitute servicer.

 

(c)           The Servicer may not assign this Servicing Agreement or any of its rights, powers, duties or obligations hereunder, except in accordance with the terms of this 20[__]-[__] SUBI Servicing Supplement and in connection with a consolidation, merger, conveyance, transfer or lease made in compliance with Section 4.15 of this 20[__]-[__] SUBI Servicing Supplement.

 

  

  

  

 

(d)           Except as provided above, the duties and obligations of the Servicer under this 20[__]-[__] SUBI Servicing Supplement shall continue until this 20[__]-[__] SUBI Servicing Supplement shall have been terminated as provided in Section 7.01 of this 20[__]-[__] SUBI Servicing Supplement and shall survive the exercise by the Titling Trustee, on behalf of the Titling Trust, of any right or remedy under this 20[__]-[__] SUBI Servicing Supplement or the enforcement by the Titling Trustee, on behalf of the Titling Trust, of any provision of the Titling Trust Agreement, this 20[__]-[__] SUBI Servicing Supplement or the 20[__]-[__] SUBI Supplement.

 

4.14           Obligor Insurance Coverage in Respect of Leased Vehicles.  The Servicer shall ensure that the Obligor under each Contract shall have, as of the date of such Contract, a comprehensive, collision and property damage insurance policy covering the actual cash value of the related Leased Vehicle and naming the Titling Trust or the Titling Trustee on behalf of the Titling Trust as a loss payee, as well as public liability, bodily injury and property damage coverage in the amounts required by applicable state law or as set forth in such Contract, and naming the Titling Trust or
the Titling Trustee on behalf of the Titling Trust as an additional insured.  Notwithstanding the foregoing, if an insurance policy names the Servicer rather than the Titling Trust or the Titling Trustee on behalf of the Titling Trust as loss payee or additional insured, the Servicer shall not be required to correct such designation as long as the Servicer is responsible for any increased deductibles under any Contingent and Excess Liability Policy as provided in the following paragraph. Except as otherwise set forth in this 20[__]-[__] SUBI Servicing Supplement or in any other Transaction Document, the Servicer shall, on at least a monthly basis, deposit into the 20[__]-[__] SUBI Collection Account any proceeds of such Insurance Policy that the Servicer may receive with respect to any 20[__]-[__] Leased Vehicle.

 

In each case as to which a deductible is applicable under any Contingent and Excess Liability Policy, the Servicer will pay the deductible on behalf of the insured. The foregoing obligation of the Servicer shall survive the resignation of the Servicer or any termination of it as Servicer under this 20[__]-[__] SUBI Servicing Supplement pursuant to Section 6.01 of this 20[__]-[__] SUBI Servicing Supplement.

 

4.15           Merger or Consolidation of, or Assumption of the Obligations of, Servicer.  Any corporation (a) into which the Servicer may be merged or consolidated, (b) which may result from any merger, conversion or consolidation to which the Servicer shall be a party or (c) which may succeed to all or substantially all of the business of the Servicer, which corporation in any of the foregoing cases executes an agreement of assumption to perform every obligation of the Servicer under this 20[__]-[__] SUBI Servicing Supplement, shall be the successor to the Servicer under
this 20[__]-[__] SUBI Servicing Supplement without the execution or filing of any paper or any further act on the part of any of the parties to this 20[__]-[__] SUBI Servicing Supplement; provided, however, that (i) immediately after giving effect to such transaction, no representation or warranty made pursuant to Section 2.01 shall have been breached (except that the representations regarding the due organization and valid existence of the successor may be deemed to reference jurisdictions other than California), and no Servicer Default, and no event which, after notice or lapse of time, or both, would become a Servicer Default, shall have occurred and be continuing, (ii) the Servicer shall have delivered to the Titling Trustee and the 20[__]-[__] Securitization Trustee an Officer’s Certificate and an Opinion of Counsel each stating that such consolidation, merger or
succession and such agreement of assumption comply 

 

  

  

  

with this Section and that all conditions precedent provided for in this 20[__]-[__] SUBI Servicing Supplement relating to such transaction have been complied with, (iii) the Servicer shall have given 10 days’ written notice prior to the consummation of any such transaction to each Rating Agency of its intent or expectation to enter such transaction and neither Rating Agency shall have notified the Titling Trustee or the 20[__]-[__] Securitization Trustee that such transaction might or would cause it to reduce, withdraw or modify its then current rating of any Class of Notes, (iv) immediately after giving effect to such transaction, the successor to the Servicer shall become the Administrator
under the 20[__]-[__] Administration Agreement in accordance with Section 8 thereof and (v) the Servicer shall have delivered to the Titling Trustee and the 20[__]-[__] Securitization Trustee an Opinion of Counsel stating that, in the opinion of such counsel, either (A) 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 20[__]-[__] Securitization Trustee in the 20[__] SUBI Certificate and reciting the details of such filings or (B) no such action shall be necessary to preserve and protect such interests.  Notwithstanding anything herein to the contrary, the execution of the foregoing agreement of assumption and compliance with clauses (i), (ii), (iii), (iv) and (v) above shall be conditions to the consummation of the transactions referred to
in clause (a), (b) or (c) above.

 

4.16           Limitation on Liability of Servicer and Others.  Neither the Servicer nor any of the directors, officers, employees or agents of the Servicer shall be under any liability to the 20[__]-[__] Securitization Trust, the 20[__]-[__] Securitization Trustee, the 20[__]-[__] Securitization Owner Trustee, the Noteholders or the Certificateholder, except as provided under this 20[__]-[__] SUBI Servicing Supplement, for any action taken or for refraining from the taking of any action pursuant to this 20[__]-[__] SUBI Servicing Supplement or for errors in judgment; provided, however,
that this provision shall not protect the Servicer or any such person against any liability that would otherwise be imposed by reason of willful misfeasance, bad faith or negligence in the performance of duties or by reason of reckless disregard of obligations and duties under this 20[__]-[__] SUBI Servicing Supplement.  The Servicer and any director, officer, employee or agent of the Servicer may rely in good faith on any document of any kind prima facie properly executed and submitted by any person respecting any matters arising under this 20[__]-[__] SUBI Servicing Supplement.

 

Except as provided in this 20[__]-[__] SUBI Servicing Supplement, the Servicer shall not be under any obligation to appear in, prosecute or defend any legal action that shall not be incidental to its duties to service the 20[__]-[__] Contracts and 20[__]-[__] Leased Vehicles in accordance with this 20[__]-[__] SUBI Servicing Supplement, and that in its opinion may involve it in any expense or liability; provided, however, that the Servicer may (with the written consent of the 20[__]-[__] Securitization Owner Trustee or 20[__]-[__] Securitization Trustee) undertake any reasonable action
that it may deem necessary or desirable in respect of the Securitization Trust Documents and the rights and duties of the parties to the Securitization Trust Documents and the interests of the Certificateholder under this 20[__]-[__] SUBI Servicing Supplement and the Noteholders under the 20[__]-[__] Securitization Indenture.  In such event, the reasonable legal expenses and costs for such action and any liability resulting therefrom shall be expenses, costs and liabilities of the Trust Estate and the Servicer will be entitled to be reimbursed therefor solely from Available Collections.

 

  

  

  

 

4.17           Contingent and Excess Liability Insurance Policies.  So long as any Notes are outstanding, the Servicer shall maintain and pay when due all premiums with respect to the Contingent and Excess Liability Insurance Policies unless termination of any Contingent and Excess Liability Policy will not reduce the Servicer’s insurance coverage below the $1 million per accident minimum and the Rating Agency Condition is satisfied with respect to such termination.  The Servicer shall maintain such Contingent and Excess Liability Insurance Policies that provide insurance
coverage of at least $1 million per accident and permit multiple claims in any policy period.

 

ARTICLE V

STATEMENTS AND REPORTS

 

5.01           Servicer’s Certificate.

 

(a)           On or before each Determination Date, the Servicer shall deliver to the Titling Trustee, the 20[__]-[__] Securitization Owner Trustee, the 20[__]-[__] Securitization Trustee, each Paying Agent and the Administrator, and shall make available to the Rating Agencies, a Servicer’s Certificate substantially in the form of Exhibit C hereto, containing the information necessary to make the payments to be made on the related Payment Date and the information necessary for the 20[__]-[__] Securitization Owner Trustee and the 20[__]-[__] Securitization Trustee to send statements to the Securityholders pursuant to the 20[__]-[__] Securitization
Trust Agreement or the 20[__]-[__] Securitization Indenture, as the case may be.  On or before each applicable Determination Date, the Servicer shall provide written notice to the 20[__]-[__] Securitization Owner Trustee and the 20[__]-[__] Securitization Trustee specifying (i) the identity of any 20[__]-[__] Contract that the Servicer determined to be a Charged-Off Vehicle during the Collection Period for the Payment Date to which such Determination Date relates, (ii) the identity of any 20[__]-[__] Contract in respect of which payment of a Reallocation Payment has been made in the Collection Period for the Payment Date to which such Determination Date relates, and (iii) the account number of the Obligor of any such 20[__]-[__] Contract described in the foregoing clause (i) or (ii) (as specified in the Schedule of 20[__]-[__] Contracts and 20[__]-[__] Leased
Vehicles).

 

5.02           Annual Statement of Compliance; Notice of Default.

 

(a)           Within 90 days after the end of each fiscal year for which a report on Form 10-K is required to be filed with the Commission by or on behalf of the 20[__]-[__] Securitization Trust (commencing with the fiscal year ended December 31, 20[__]), the Servicer shall deliver an Officer’s Certificate to the Titling Trustee, the 20[__]-[__] Securitization Owner Trustee, the 20[__]-[__] Securitization Trustee and the UTI Beneficiary (if TMCC is no longer both the Servicer and the UTI Beneficiary) to the effect that a review of the activities of the Servicer during the prior fiscal year (or since the Closing Date in the case of the first such
Officer’s Certificate) has been made under the supervision of the officer executing such Officer’s Certificate with a view to determining whether during such period the Servicer has fulfilled all of its obligations under this 20[__]-[__] SUBI Servicing Supplement, and either (i) stating that, to the best of his or her knowledge, the Servicer has materially fulfilled its obligations under this 20[__]-[__] SUBI Servicing Supplement, or (ii) if there has been a failure to fulfill any such 

 

  

  

  

obligation in any material respect, specifying each such failure known to such officer and the nature and status thereof.

 

(b)           The Servicer shall deliver to the Titling Trustee, the 20[__]-[__] Securitization Owner Trustee, the 20[__]-[__] Securitization Trustee and the Rating Agencies, promptly after having obtained knowledge thereof, but in no event later than five Business Days thereafter, written notice in an Officer’s Certificate of any event which with the giving of notice or lapse of time, or both, would become a Servicer Default under clauses (1), (2) or (3) in the definition thereof.

 

5.03           Other Certificates and Notices From Servicer.

 

(a)           Within 90 days after the end of each fiscal year for which a report on Form 10-K is required to be filed with the Commission by or on behalf of the 20[__]-[__] Securitization Trust (commencing with the fiscal year ended December 31, 20[__]), the Servicer shall:

 

(i)           deliver to the Titling Trustee, the 20[__]-[__] Securitization Trust, the Administrator, the 20[__]-[__] Securitization Owner Trustee, the 20[__]-[__] Securitization Trustee and the UTI Beneficiary (if TMCC is no longer both the Servicer and the UTI Beneficiary) a report regarding the Servicer’s assessment of compliance with the Servicing Criteria during the immediately preceding fiscal year, as required under Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB.  Such report shall be addressed to the 20[__]-[__] Securitization Trust and signed by an authorized officer of the Servicer, and shall address each
of the Servicing Criteria specified on a certification substantially in the form of Exhibit E hereto delivered to the 20[__]-[__] Securitization Trust and the Administrator concurrently with the execution of this 20[__]-[__] SUBI Servicing Supplement;

 

(ii)           deliver to the Titling Trustee, the 20[__]-[__] Securitization Trust, the Administrator, the 20[__]-[__] Securitization Owner Trustee, the 20[__]-[__] Securitization Trustee and the UTI Beneficiary (if TMCC is no longer both the Servicer and the UTI Beneficiary) a report of a registered public accounting firm reasonably acceptable to the 20[__]-[__] Securitization Trust and the Administrator that attests to, and reports on, the assessment of compliance made by the Servicer and delivered pursuant to the preceding paragraph.  Such attestation shall be in accordance with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities
Act and the Exchange Act;

 

(iii)           cause each Subservicer and each Subcontractor determined by the Servicer to be “participating in the servicing function” within the meaning of Item 1122 of Regulation AB, to deliver to the Titling Trustee, the 20[__]-[__] Securitization Trust, the Administrator, the 20[__]-[__] Securitization Owner Trustee, the 20[__]-[__] Securitization Trustee and the UTI Beneficiary (if TMCC is no longer both the Servicer and the UTI Beneficiary) an assessment of compliance and accountants’ attestation as and when provided in paragraphs (i) and (ii) of this Section; and

 

(iv)           if requested by the Administrator, acting on behalf of the 20[__]-[__] Securitization Trust, deliver to the 20[__]-[__] Securitization Trust and the Administrator 

 

  

  

  

and any other Person that will be responsible for signing the certification (a “Sarbanes Certification”) required by Rules 13a-14(d) and 15d-14(d) under the Exchange Act (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002) on behalf of an asset-backed issuer with respect to a securitization transaction a certification in the form attached hereto as Exhibit D.

 

The Servicer acknowledges that the parties identified in clause (a)(iv) above may rely on the certification provided by the Servicer pursuant to such clause in signing a Sarbanes Certification and filing such with the Commission.  The Administrator, acting on behalf of the 20[__]-[__] Securitization Trust, will not request delivery of a certification under clause (a)(iv) above unless the Depositor is required under the Exchange Act to file an annual report on Form 10-K with respect to an asset-backed issuer whose asset pool includes or relates to the 20[__]-[__] Contracts or the 20[__]-[__] Leased Vehicles.

 

(b)           Each assessment of compliance provided by a Subservicer pursuant to Section 5.03(a)(iii) shall address each of the Servicing Criteria specified on a certification to be delivered to the Servicer, the 20[__]-[__] Securitization Trust and the Administrator on or prior to the date of such appointment.  An assessment of compliance provided by a Subcontractor pursuant to Section 5.03(a)(iii) need not address any elements of the Servicing Criteria other than those specified by the Servicer and the 20[__]-[__] Securitization Trust on the date of such appointment.

 

5.04           Tax Returns.  As contemplated by Section 6.12 of the 20[__]-[__] Securitization Indenture, the Servicer shall direct the 20[__]-[__] Securitization Trustee to prepare or cause to be prepared, on behalf of the Depositor, any required federal tax information returns (in a manner consistent with the treatment of the Investor Certificates as indebtedness).  Also as contemplated by Section 6.12 of the 20[__]-[__] Securitization Indenture, the Servicer shall timely prepare or cause to be prepared any federal and state tax returns that may be required with respect to the
20[__]-[__] Securitization Trust or the assets thereof and shall timely deliver any such returns to the 20[__]-[__] Securitization Trustee for signature.

 

5.05           Information to be Provided by the Servicer.

 

(a)           At the request of the Administrator, acting on behalf of the 20[__]-[__] Securitization Trust, for the purpose of satisfying its reporting obligation under the Exchange Act with respect to any class of asset-backed securities, the Servicer shall (or shall cause each Subservicer to) (i) notify the 20[__]-[__] Securitization Trust and the Administrator in writing of any material litigation or governmental proceedings pending against the Servicer or any Subservicer and (ii) provide to the 20[__]-[__] Securitization Trust and the Administrator a description of such proceedings.

 

(b)           As a condition to the succession to the Servicer or any Subservicer as servicer or Subservicer under this 20[__]-[__] SUBI Servicing Supplement by any Person (i) into which the Servicer or such Subservicer may be merged or consolidated, or (ii) which may be appointed as a successor to the Servicer or any Subservicer, the Servicer shall provide to the 20[__]-[__] Securitization Trust, the Administrator and the Depositor, at least 10 Business Days prior to the effective date of such succession or appointment, (x) written notice to the 20[__]-[__] 

 

  

  

  

Securitization Trust and the Administrator of such succession or appointment and (y) in writing and in form and substance reasonably satisfactory to the 20[__]-[__] Securitization Trust and the Administrator, all information reasonably requested by the 20[__]-[__] Securitization Trust or the Administrator, acting on behalf of the 20[__]-[__] Securitization Trust, in order to comply with its reporting obligation under Item 6.02 of Form 8-K with respect to any class of asset-backed securities.

 

(c)           In addition to such information as the Servicer, as servicer, is obligated to provide pursuant to other provisions of this 20[__]-[__] SUBI Servicing Supplement, if so requested by the 20[__]-[__] Securitization Trust or the Administrator, acting on behalf of the 20[__]-[__] Securitization Trust, the Servicer shall provide such information regarding the performance or servicing of the 20[__]-[__] Contracts and the 20[__]-[__] Leased Vehicles as is reasonably required to facilitate preparation of distribution reports in accordance with Item 1121 of Regulation AB.  Such information shall be provided concurrently with the monthly reports
otherwise required to be delivered by the Servicer under this 20[__]-[__] SUBI Servicing Supplement, commencing with the first such report due not less than ten Business Days following such request.

 

5.06           Remedies.

 

(a)           The Servicer shall be liable to the 20[__]-[__] Securitization Trust, the Administrator and the Depositor for any monetary damages incurred as a result of the failure by the Servicer, any Subservicer or any Subcontractor to deliver any information, report, certification, attestation, accountants’ letter or other material when and as required under this Article V, including any failure by the Servicer to identify any Subcontractor “participating in the servicing function” within the meaning of Item 1122 of Regulation AB, and shall reimburse the applicable party for all costs reasonably incurred by each such party in order to obtain
the information, report, certification, accountants’ letter or other material not delivered as required by the Servicer, any Subservicer, or any Subcontractor.

 

(b)           The Seller shall promptly reimburse the 20[__]-[__] Securitization Trust and the Administrator for all reasonable expenses incurred by the 20[__]-[__] Securitization Trust or Administrator as such are incurred, in connection with the termination of the Servicer as servicer and the transfer of servicing of the 20[__]-[__] Contracts and the 20[__]-[__] Leased Vehicles to a successor servicer.  The provisions of this paragraph shall not limit whatever rights the 20[__]-[__] Securitization Trust or Administrator may have under other provisions of this 20[__]-[__] SUBI Servicing Supplement or otherwise, whether in equity or at law, such as an
action for damages, specific performance or injunctive relief.

 

ARTICLE VI

DEFAULT

 

6.01           Servicer Default; Termination of Servicer as to 20[__]-[__] SUBI Portfolio.

 

(a)           Upon the occurrence of an event or circumstance of force majeure, the Servicer shall not be relieved from using all commercially reasonable efforts to perform its obligations in a timely manner, and the Servicer shall provide to the 20[__]-[__] Owner Trustee, the 20[__]-[__] 

 

  

  

  

Securitization Trustee, the Titling Trustee, the Depositor, the Noteholders and the Certificateholders prompt notice of such failure or delay, together with a description of its efforts to perform its obligations.

 

(b)           At any time when a Servicer Default set forth in clauses (a) through (c) of the definition thereof has occurred and is continuing, so long as the Servicer Default shall not have been remedied, either the 20[__]-[__] Securitization Trustee or the Holders of Notes evidencing at least a majority of the Outstanding Amount of Notes of the Controlling Class of Notes acting together as a single Class, excluding for purposes of such calculation and action all Notes held or beneficially owned by TMCC, TLI or any of their Affiliates, by notice then given in writing to the Servicer (and to the 20[__]-[__] Securitization Trustee and the 20[__]-[__]
Securitization Owner Trustee if given by the Noteholders) may terminate all the rights and obligations (other than the obligations set forth in Section 4.10 and 5.06 hereof and the rights set forth in Section 4.16 hereof) of the Servicer under this 20[__]-[__] SUBI Servicing Supplement.  By the same required vote, the Noteholders specified in the prior sentence may waive any such Servicer Default (other than a default in the making of any required deposits or payments from or to the 20[__]-[__] SUBI Collection Account or 20[__]-[__] SUBI Reserve Account) for a specified period or permanently.  Upon any such waiver of a past default, such default shall cease to exist, and any Servicer Default arising therefrom shall be deemed to have been remedied for every purpose of this 20[__]-[__] SUBI Servicing Supplement.  No such waiver shall extend to any subsequent
or other default or impair any right consequent thereto.

 

6.02           No Effect on Other Parties.  Upon any termination of the rights and powers of the Servicer with respect to the 20[__]-[__] SUBI Sub-Trust from time to time pursuant to Section 6.01 hereof, or upon any appointment of a successor to the Servicer with respect to the 20[__]-[__] SUBI Sub-Trust, all the rights, powers, duties and obligations of the Titling Trustee, the UTI Beneficiary and the Depositor under this 20[__]-[__] SUBI Servicing Supplement, the 20[__]-[__] Securitization Indenture, the 20[__]-[__] SUBI Supplement, or any other Securitization Trust Document shall
remain unaffected by such termination or appointment and shall remain in full force and effect thereafter, except as otherwise expressly provided herein or therein.

 

6.03           Appointment of Successor.

 

(a)           Upon the Servicer’s receipt of notice of termination pursuant to Section 6.01 or the Servicer’s resignation in accordance with the terms of this 20[__]-[__] SUBI Servicing Supplement, the predecessor Servicer shall continue to perform its functions as Servicer under this 20[__]-[__] SUBI Servicing Supplement, 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 (i) the date 60 days from the delivery to the 20[__]-[__] Securitization Owner Trustee and the
20[__]-[__] Securitization Trustee of written notice of such resignation (or written confirmation of such notice) in accordance with the terms of this 20[__]-[__] SUBI Servicing Supplement and (ii) the date upon which the predecessor Servicer shall become unable to act as Servicer, as specified in the notice of resignation and accompanying Opinion of Counsel.  In the event of the Servicer’s termination hereunder, the 20[__]-[__] Securitization Trustee shall appoint a Successor Servicer, which shall be any established institution having a net worth of not less than $25,000,000 and 

 

  

  

  

whose regular business shall include the servicing of contracts similar to the 20[__]-[__] Contracts, and the Successor Servicer shall accept its appointment (including its appointment as Administrator under the 20[__]-[__] Administration Agreement as set forth in Section 8.02(b) thereof) by a written assumption in form acceptable to the 20[__]-[__] Securitization Owner Trustee and the 20[__]-[__] Securitization Trustee.  In the event that a Successor Servicer has not been appointed at the time when the predecessor Servicer has ceased to act as Servicer in accordance with this Section, the 20[__]-[__] Securitization Trustee without further action shall automatically be appointed the Successor Servicer
and the 20[__]-[__] Securitization Trustee shall be entitled to the Total Servicing Fee.  Notwithstanding the above, the Indenture Trustee shall, if it shall be unwilling or legally unable so to act, appoint or petition a court of competent jurisdiction to appoint any established institution having a net worth of not less than $25,000,000 and whose regular business shall include the servicing of contracts similar to the 20[__]-[__] Contracts, as the successor to the Servicer under this 20[__]-[__] SUBI Servicing Supplement.  In connection therewith, the 20[__]-[__] Securitization Trustee is authorized and empowered to offer such successor servicer compensation up to, but not in excess of, the Total Servicing Fee and other servicing compensation specified in this 20[__]-[__] SUBI Servicing Supplement as payable to the initial Servicer.  Upon such
appointment, the 20[__]-[__] Securitization Trustee will be released from the duties and obligations of acting as Successor Servicer, such release effective upon the effective date of the servicing agreement entered into between the Successor Servicer, the Titling Trustee and the Trust Agent.

 

(b)           Upon appointment, the successor Servicer (including the 20[__]-[__] Securitization Trustee acting as successor Servicer) shall (i) be the successor in all respects to the predecessor Servicer and shall be subject to all the responsibilities, duties and liabilities arising thereafter relating thereto placed on the predecessor Servicer and shall be entitled to the Total Servicing Fee and all the rights granted to the predecessor Servicer by the terms and provisions of this 20[__]-[__] SUBI Servicing Supplement and (ii) become the Administrator under the 20[__]-[__] Administration Agreement in accordance with Section 8 of such
Agreement.

 

(c)           On or after the receipt by the Servicer of written notice of termination pursuant to Section 6.01, all authority and power of the Servicer under this 20[__]-[__] SUBI Servicing Supplement, whether with respect to the Notes, the Certificate or the 20[__]-[__] Contracts and 20[__]-[__] Leased Vehicles or otherwise, shall, without further action, pass to and be vested in the 20[__]-[__] Securitization Trustee or such Successor Servicer as may be appointed under this Section 6.03 and, without limitation, the 20[__]-[__] Securitization Trustee and the 20[__]-[__] Securitization Owner Trustee are hereby authorized and empowered to execute and deliver,
for the benefit of the predecessor Servicer, as attorney-in-fact or otherwise, any and all documents and other instruments, and to do or accomplish all other acts or things necessary or appropriate to effect the purposes of such notice of termination, whether to complete the transfer of the related Contract Documents, Certificates of Title and related documents, or otherwise.  The predecessor Servicer shall cooperate with the Successor Servicer and the 20[__]-[__] Securitization Owner Trustee in effecting the termination of the responsibilities and rights of the predecessor Servicer under this 20[__]-[__] SUBI Servicing Supplement, including, without limitation, the transfer to the Successor Servicer for administration by it of all cash amounts that shall at the time be held by the predecessor Servicer for deposit, or have been deposited by the predecessor Servicer, in the
20[__]-[__] SUBI Collection Account or thereafter received with respect to the 20[__]-[__] Contracts and 20[__]-[__] Leased Vehicles.  All reasonable costs and expenses (including 

 

  

  

  

attorneys’ fees) incurred in connection with transferring the Contract Documents, Certificates of Title and related documents to the Successor Servicer and amending this 20[__]-[__] SUBI Servicing Supplement to reflect such succession as Servicer pursuant to this Section shall be paid by the predecessor Servicer upon presentation of reasonable documentation of such costs and expenses.  In the event that the 20[__]-[__] Securitization Trustee succeeds to the rights and obligations of the Servicer hereunder, and a subsequent transfer of such rights and obligations is effected pursuant to Section 6.01 or this Section 6.03 hereof, the original Servicer hereunder shall reimburse the 20[__]-[__]
Securitization Trustee for all reasonable costs and expenses as described in the immediately preceding sentence.  Upon receipt of notice of the occurrence of a Servicer Default, the 20[__]-[__] Securitization Trustee shall give prompt written notice thereof to the Administrator, and the Administrator shall provide such notice to the Rating Agencies.

 

6.04           Compensation Payable.  If the Servicer shall resign or be terminated, the Servicer shall continue to be entitled to all accrued and unpaid compensation payable to the Servicer through the date of such termination as specified in Section 4.07 of this 20[__]-[__] SUBI Servicing Supplement.

 

6.05           Notification.  Upon any termination of, or appointment of a successor to, the Servicer pursuant to this Article VI, the [Titling Trustee] shall give prompt written notice thereof to Certificateholder, and the 20[__]-[__] Securitization Trustee shall give prompt written notice thereof to Noteholders and the Administrator, and the Administrator shall provide such notice to the Rating Agencies.

 

 

ARTICLE VII

MISCELLANEOUS

 

7.01           Termination of Agreement.

 

(a)           In connection with any purchase by the Servicer of the Trust Estate pursuant to Article X of the 20[__]-[__] Securitization Indenture, and the Servicer’s then succeeding to all of the interest in the 20[__]-[__] SUBI, and if the UTI Beneficiary shall thereafter succeed to such interest in the 20[__]-[__] SUBI, the Servicer, upon the direction of the UTI Beneficiary as provided in Section 16.05 of the 20[__]-[__] SUBI Supplement, shall reallocate all 20[__]-[__] Contracts, 20[__]-[__] Leased Vehicles and related 20[__]-[__] SUBI Assets to the UTI Sub-Trust.

 

(b)           Except as provided in this Section, the respective duties and obligations of the Servicer and the Titling Trustee with respect to the 20[__]-[__] SUBI shall terminate upon the termination of the 20[__]-[__] Securitization Indenture pursuant to Section 7.01 thereof.  Upon such a termination, the Servicer shall pay over to the Titling Trustee or any other Person entitled thereto all monies held by the Servicer with respect to the 20[__]-[__] SUBI Sub-Trust pursuant to this 20[__]-[__] SUBI Servicing Supplement. 

 

7.02           Amendment.

 

  

  

  

 

(a)           This 20[__]-[__] SUBI Servicing Supplement may be amended by the Titling Trustee, on behalf of the Titling Trust, the Trust Agent and the Servicer, with the consent of the 20[__]-[__] Securitization Trustee, but without the consent of any of the Noteholders, the Certificateholders, the holders of the 20[__]-[__] SUBI Certificate, the holders of the 20[__]-[__] UTI Certificate or the holder of any Other SUBI Certificate, to cure any ambiguity, to correct or supplement any provisions in this 20[__]-[__] SUBI Servicing Supplement or for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions in this
20[__]-[__] SUBI Servicing Supplement or of modifying in any manner the rights of the Noteholders or the Certificateholders; provided, that either (i) an Officer’s Certificate shall have been delivered by the Servicer to the Titling Trustee and the 20[__]-[__] Securitization Trustee certifying that such officer reasonably believes that such proposed amendment will not materially and adversely affect the interest of any Noteholder or (ii) the Rating Agency Condition has been satisfied in respect of such proposed amendment.

 

(b)           This 20[__]-[__] SUBI Servicing Supplement may also be amended from time to time by the Titling Trustee, on behalf of the Titling Trust, the Trust Agent and the Servicer, with prior written notice to the Rating Agencies, with the consent of the 20[__]-[__] Securitization Trustee and, if the interests of the Noteholders are materially and adversely affected, with the consent of the Holders of Notes evidencing at least a majority of the Outstanding Amount of the Controlling Class of Notes, acting together as a single Class but excluding for purposes of such calculation and action all Notes held or beneficially owned by TMCC, TLI or any of their
Affiliates, for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this 20[__]-[__] SUBI Servicing Supplement or of modifying in any manner the rights of the Noteholders or Certificateholders under this 20[__]-[__] SUBI Servicing Supplement.

 

(c)           No amendment otherwise permitted under this Section 7.02 may (x) increase or reduce in any manner the amount of, or accelerate or delay the timing of, collections of payments on the 20[__]-[__] Contracts or distributions required to be made for the benefit of any Noteholders or Certificateholders without the consent of all Noteholders, Certificateholders and the holders of the 20[__]-[__] SUBI Certificates adversely affected thereby, or (y) reduce the percentage of the Notes or Certificates which are required to consent to any such amendment without the consent of the Noteholders and Certficateholders adversely affected thereby; provided, that any
amendment referred to in clause (x) or (y) above shall be deemed to not adversely affect any Noteholder if the Rating Agency Condition has been satisfied in respect of such proposed amendment.  No amendment referred to in clause (x) in the immediately preceding sentence shall be permitted unless an Officer’s Certificate shall have been delivered by the Servicer to the 20[__]-[__] Securitization Trustee certifying that such officer reasonably believes that such proposed amendment will not materially and adversely affect the interest of any Noteholder or Certificateholder whose consent was not obtained.

 

(d)           For purposes of this Section 7.02, the 20[__]-[__] Securitization Trustee will be the holder of the 20[__]-[__] SUBI Certificate for purposes of determining whether any proposed amendment to this 20[__]-[__] SUBI Servicing Supplement will materially adversely affect the interests of the holders of the 20[__]-[__]  SUBI Certificate.

  

  

  

 

(e)           Promptly after the execution of any such amendment or consent, the Servicer shall cause written notification of the substance of such amendment or consent to be furnished to each Noteholder, Certificateholder, the 20[__] Securitization Trustee and each of the Rating Agencies.

 

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

 

(g)           Prior to the execution of any amendment to this 20[__]-[__] SUBI Servicing Supplement, the 20[__]-[__] Securitization Trustee shall be entitled to receive and rely upon an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this 20[__]-[__] SUBI Servicing Supplement.  The 20[__]-[__] Securitization Trustee may, but shall not be obligated to, enter into any such amendment which affects the 20[__]-[__] Securitization Trustee’s own rights, duties or immunities under this 20[__]-[__] SUBI Servicing Supplement or otherwise.  No amendment to this 20[__]-[__] SUBI Servicing Supplement
will be permitted unless an Opinion of Counsel has been furnished to the 20[__]-[__] Securitization Trustee to the effect that such amendment will not (A) affect the treatment of the Notes as debt for federal income tax purposes, (B) be deemed to cause a taxable exchange of the Notes for federal income tax purposes or (C) cause the 20[__]-[__] Securitization Trust or the Titling Trust to be classified as an association (or a publicly traded partnership) taxable as a corporation for federal income tax purposes.

 

(h)           Any amendment to this 20[__]-[__] SUBI Servicing Supplement that materially affects the UTI, any Other SUBI, any Other SUBI Certificate or Other SUBI Assets, in addition to the 20[__]-[__] SUBI Sub-Trust, will require the consent of the holders of the UTI Certificates or SUBI Certificates affected thereby.  Notwithstanding the foregoing, this Section 7.02 does not modify or supersede any provision in the Titling Trust Agreement.  Without limiting the foregoing, any amendment of the Titling Trust Agreement or any other SUBI Servicing Agreement that neither applies to nor affects the 20[__]-[__] SUBI shall not require the consent
of the 20[__]-[__] Securitization Trustee or the Beneficiary of the 20[__]-[__] SUBI Certificate.

 

7.03           Governing Law.  This 20[__]-[__] SUBI Servicing Supplement shall be governed by and construed in accordance with the laws of the state of New York, without reference to its conflict of law provisions (other than Section 5-1401 of the General Obligations Law of the State of New York), and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with such laws.

 

7.04           Notices.  All demands, notices, communications and instructions upon or to the Servicer, the Titling Trustee, the 20[__]-[__] Securitization Trustee or the Rating Agencies under this 20[__]-[__] SUBI Servicing Supplement shall be in writing, personally delivered or mailed by certified mail, return receipt requested, and shall be deemed to have been duly given upon receipt (a) in the case of TMCC or the Servicer, to Toyota Motor Credit Corporation, 19001 South Western Avenue NF10, Torrance, California 90501, Attention: Treasurer, (310) 468-4001, with a copy to Toyota
Motor Credit Corporation, 19001 South Western Avenue EF12, Torrance, California 90501, Attention: General Counsel, (b) in the case of the Titling Trustee, to 111 East Wacker Drive, Suite 3000, Chicago, Illinois 60601 (Telecopier No. (312) 228-9401), with a copy 

 

  

  

  

to the principal Trust Agent designated by the Titling Trustee, (c) in the case of the 20[__]-[__] Securitization Trustee, to [__________]), and (d) in the case of the Rating Agencies, to [__________]; or, as to each of the foregoing, at such other address as shall be designated by written notice to the other parties.  All notices and demands, if given by the Titling Trustee shall be deemed to have been given by all of the beneficiaries of the Titling Trust and (z) if given by the 20[__]-[__] Securitization Trustee shall be deemed to be given by the Noteholders.

 

7.05           Severability.  Any provision of this 20[__]-[__] SUBI Servicing Supplement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

7.06           Nonpetition Covenants.  Notwithstanding any prior termination of this 20[__]-[__] SUBI Servicing Supplement, each of the parties hereto, by entering into this 20[__]-[__] SUBI Servicing Supplement hereby covenants and agrees that it shall not at any time acquiesce, petition or otherwise invoke or cause the 20[__]-[__] Securitization Trust, the Depositor, the Titling Trustee, the Titling Trust, the UTI Beneficiary (and any general partner of the UTI Beneficiary that is a partnership, or the managing member of the UTI Beneficiary that is a limited liability company), or any
Special Purpose Affiliate (and any general partner of any Special Purpose Affiliate that is a partnership, or the managing member of any Special Purpose Affiliate that is a limited liability company) that holds a beneficial interest in the Titling Trust (each, a “Party” and, collectively, the “Parties”) to invoke the process of any court or government authority for the purpose of commencing or sustaining a case against any Party, under any federal or state bankruptcy, insolvency or similar law, or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of any of the Parties, as the case may be, or any substantial part of its property, or ordering the winding up or liquidation of the affairs of any of the Parties, in connection with any obligations relating to the Notes, the Certificates, this 20[__]-[__] SUBI
Servicing Supplement or any of the Securitization Trust Documents prior to the date that is one year and one day after the date on which the 20[__]-[__] Securitization Indenture is terminated.  This Section 7.06 shall survive the termination of this 20[__]-[__] SUBI Servicing Supplement and the termination of the Servicer under this 20[__]-[__] SUBI Servicing Supplement.

 

7.07           Inspection and Audit Rights.  The Servicer agrees that, on reasonable prior notice, it will permit any representative or designee of the Titling Trustee, on behalf of the Titling Trust, during the normal business hours of the Servicer, to examine all books of account, records, reports and other papers of the Servicer relating to the Titling Trust Assets, to make copies and extracts therefrom, to cause such books to be audited by Independent Accountants selected by the Titling Trustee, and to discuss the affairs, finances and accounts relating to the Titling Trust Assets
with its officers, employees and Independent Accountants (and by this provision the Servicer hereby authorizes such Independent Accountants to discuss with such representatives such affairs, finances and accounts), all at such reasonable times and as often as may be reasonably requested.  Such rights shall include, but shall not be limited to, any off-site storage facilities at which any data (including, without limitation, computerized records), together with all operating software and appropriate documentation, may be held.  The Titling Trustee agrees to keep confidential all the confidential information of the Servicer acquired during any such

  

  

  

examination as if such information were its own confidential information, except to the extent necessary for the purposes of this 20[__]-[__] SUBI Servicing Supplement.  The expenses incident to the exercise by the Titling Trustee of any right under this Section shall be reimbursable by the Servicer.

 

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

 

7.09           Execution in Counterparts.  This 20[__]-[__] SUBI Servicing Supplement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.

 

7.10           Rights Cumulative.  All rights and remedies from time to time conferred upon or reserved to the Titling Trustee, on behalf of the Titling Trust, the Servicer or the 20[__]-[__] Securitization Trustee or to any or all of the foregoing are cumulative, and none is intended to be exclusive of another.  No delay or omission in insisting upon the strict observance or performance of any provision of this 20[__]-[__] SUBI Servicing Supplement, or in exercising any right or remedy, shall be construed as a waiver or relinquishment of such provision, nor shall it impair such
right or remedy.  Every right and remedy may be exercised from time to time and as often as deemed expedient.

 

7.11           Further Assurances.  Each party will do such acts, and execute and deliver to any other party such additional documents or instruments, as may be reasonably requested in order to effect the purposes of this 20[__]-[__] SUBI Servicing Supplement and to better assure and confirm unto the requesting party its rights, powers and remedies hereunder.

 

7.12           Third-Party Beneficiaries.  This 20[__]-[__] SUBI Servicing Supplement, insofar as it relates to the 20[__]-[__] SUBI Sub-Trust, will inure to the benefit of and be binding upon the parties hereto, their respective successors and permitted assigns, the 20[__]-[__] Securitization Trustee, the Titling Trustee (on behalf of the Titling Trust), and each of the holders of any legal or beneficial interest in the 20[__]-[__] SUBI Certificate (including without limitation the 20[__]-[__] Securitization Trustee and the Noteholders), who shall be considered to be third-party
beneficiaries hereof.  Except as otherwise provided in this 20[__]-[__] SUBI Servicing Supplement, no other Person will have any right or obligation hereunder.

 

7.13           Effect of 20[__]-[__] SUBI Servicing Supplement on Titling Trust Agreement.

 

(a)           Except as otherwise specifically provided herein:  (i) the parties shall continue to be bound by all provisions of the Titling Trust Agreement; and (ii) the provisions set forth herein shall operate either as additions to or modifications of the extant obligations of the parties under the Titling Trust Agreement, as the context may require.  In the event of any conflict between the provisions of this 20[__]-[__] SUBI Servicing Supplement and the Titling Trust Agreement with respect to the 20[__]-[__] SUBI, the provisions of this 20[__]-[__] SUBI
Servicing Supplement shall prevail. 

 

(b)           For purposes of determining the parties’ obligations under this 20[__]-[__] SUBI Servicing Supplement with respect to the 20[__]-[__] SUBI, general references in the Titling 

  

  

  

Trust Agreement to:  (i) a SUBI Account shall be deemed to refer more specifically to a 20[__]-[__] SUBI Account; (ii) a SUBI Asset shall be deemed to refer more specifically to a 20[__]-[__] SUBI Asset; (iii) an appropriate or applicable SUBI Collection Account shall be deemed to refer more specifically to the 20[__]-[__] SUBI Collection Account; (iv) a SUBI Sub-Trust or SUBI Portfolio shall be deemed to refer more specifically to the 20[__]-[__] SUBI Sub-Trust or 20[__]-[__] SUBI Portfolio, as the case may be; (v) a SUBI Supplement shall be deemed to refer more specifically to the 20[__]-[__] SUBI Supplement; and (vi) a SUBI Servicing Supplement shall be deemed to refer more specifically to this
20[__]-[__] SUBI Servicing Supplement.

 

7.14           Intent of the Parties; Reasonableness.  The parties hereto acknowledge and agree that the purpose of Sections 5.04, 5.05 and 5.06 of this 20[__]-[__] SUBI Servicing Supplement is to facilitate compliance by the 20[__]-[__] Securitization Trust and the Depositor with the provisions of Regulation AB and related rules and regulations of the Commission.

 

None of the parties hereto shall exercise its right to request delivery of information or other performance under these provisions other than in good faith, or for purposes other than compliance with the Securities Act, the Exchange Act and the rules and regulations of the Commission thereunder (or the provision in a private offering of disclosure comparable to that required under the Securities Act).  The Servicer acknowledges that interpretations of the requirements of Regulation AB may change over time, whether due to interpretive guidance provided by the Commission or its staff, consensus among participants in the asset-backed securities markets, advice of counsel, or otherwise, and agrees to comply
with requests made by the other parties hereto in good faith for delivery of information under these provisions on the basis of evolving interpretations of Regulation AB.  In connection with this transaction, the Servicer shall cooperate fully with the Administrator and the 20[__]-[__] Securitization Trust to deliver to the Administrator or 20[__]-[__] Securitization Trust, as applicable (including any of its assignees or designees), any and all statements, reports, certifications, records and any other information necessary in the good faith determination of the 20[__]-[__] Securitization Trust or the Administrator to permit the 20[__]-[__] Securitization Trust or Administrator (acting on behalf of the 20[__]-[__] Securitization Trust) to comply with the provisions of Regulation AB, together with such disclosures relating to the Servicer, any Subservicer and the 20[__]-[__]
Contracts and 20[__]-[__] Leased Vehicles, or the servicing of the 20[__]-[__] Contracts and 20[__]-[__] Leased Vehicles, reasonably believed by the 20[__]-[__] Securitization Trust or the Administrator to be necessary in order to effect such compliance.

 

The 20[__]-[__] Securitization Trust and the Administrator (including any of its assignees or designees) shall cooperate with the Servicer by providing timely notice of requests for information under these provisions and by reasonably limiting such requests to information required, in the reasonable judgment or the 20[__]-[__] Securitization Trust or the Administrator, as applicable, to comply with Regulation AB.

 

7.15           Assignment by the Titling Trust or Servicer.  Notwithstanding anything to the contrary contained herein, except as provided in Section 4.15 of this 20[__]-[__] SUBI Servicing Supplement and as provided in the provisions of this 20[__]-[__] SUBI Servicing Supplement concerning the resignation or termination of the Servicer, this 20[__]-[__] SUBI Servicing Supplement may not be assigned by the Titling Trust or the Servicer.

  

  

  

IN WITNESS WHEREOF, each of the parties hereto has caused this 20[__]-[__] SUBI Servicing Supplement to be duly executed by their respective officers duly authorized as of the day and year first above written.

 

	 	
TOYOTA MOTOR CREDIT CORPORATION,

as Servicer

 

	 	
By:  ________________________________                                                                     

        Name:

        Title:

 

	 	
TOYOTA LEASE TRUST

 

	 	
By:  TMTT, INC.,

as Titling Trustee

 

By:  ________________________________                                                                     

        Name:

        Title:

 

	 	
U.S. BANK NATIONAL ASSOCIATION,

as Trust Agent

 

	 	

By:  ________________________________                                                                     

        Name:

        Title:

 

Acknowledged and Agreed to by:

 

TOYOTA AUTO LEASE TRUST 20[__]-[__]

 

By:     [__________],

   as 20[__]-[__] Securitization Trustee

 

By:      ________________________________                                                                 

Name:

Title:

  

  

  

EXHIBIT A

 

SCHEDULE OF 20[__]-[__] CONTRACTS AND

20[__]-[__] LEASED VEHICLES AS OF THE CUTOFF DATE

 

On file with the Servicer, the Titling Trustee and the 20[__]-[__] Securitization Trustee.

 

  

  

  

EXHIBIT B

FORM OF POWER OF ATTORNEY

 

KNOW ALL MEN BY THESE PRESENTS: That the Toyota Lease Trust, a Delaware business trust qualified to do business in the State of California does hereby make, constitute, and appoint the persons listed on the attached SCHEDULE A, as Branch Managers for Toyota Motor Credit Corporation (“TMCC”) for the branch offices identified on the attached schedule (the “Branches”), its true and lawful attorneys-in-fact for and in its name, stead and behalf, for the following purpose only:

 

To execute or to designate, in writing, appropriate individuals to execute Retail Motor Vehicle Lease Agreements (Non-Recourse) between Toyota Lease Trust and various vehicle dealers in the territories customarily managed by such Branch Manager’s Branch and for no other purpose whatsoever.

 

This Power of Attorney may be revoked by the Toyota Lease Trust by notice in writing to the above-named attorneys-in-fact, in care of the Branch at the Branch’s place of business and this Power of Attorney shall immediately terminate without notice if the above-named attorney-in-fact shall cease to be an employee of TMCC at such Branch.

 

This Power of Attorney shall terminate three (3) years from the date hereof without further action by the Toyota Lease Trust unless it shall have been revoked or terminated in accordance with the terms hereof prior to that date.

 

This Power of Attorney may be executed in any number of counterparts, each of which so executed and delivered shall be deemed to be an original, but all of which counterparts shall together constitute but one and the same instrument.

 

Dated this ______ day of _______________________, 20__.

 

 

 

	 	

TOYOTA LEASE TRUST

By TMTT, Inc., not in its individual capacity,

but solely as Trustee of Toyota Lease Trust

By: _________________________________  

 

                                                              

Countersigned:   __________________________                                                   

Branch Manager

Not valid unless countersigned by

Toyota Motor Credit Corporation Branch Manager

  

Exhibit B-1

  

SCHEDULE I TO EXHIBIT B

SERVICER OFFICES

 

 

 

 

 

  

Schedule I-1

  

EXHIBIT C

FORM OF SERVICER’S CERTIFICATE

 

(See Attached)

 

 

 

 

 

  

Exhibit C-1

  

EXHIBIT D

FORM OF ANNUAL CERTIFICATION

 

	
Re:

	
The 20[__]-[__] SUBI Servicing Supplement to the Amended and Restated Titling Trust Agreement, dated as of [__________] (the “Agreement”), among TMTT, INC., as Titling Trustee (the “Titling Trustee”), Toyota Motor Credit Corporation, (the “Servicer”), and U.S. Bank National Association (formerly known as First Bank National Association), as Trust Agent.

I, ________________________________, the _______________________ of [NAME OF COMPANY] (the “Company”), certify to Toyota Auto Lease Trust 20[__]-[__] (the “20[__]-[__] Securitization Trust”) and Toyota Leasing, Inc. (the “Depositor”), and their officers, with the knowledge and intent that they will rely upon this certification, that:

 

(1)           I have reviewed the servicer compliance statement of the Company provided in accordance with Item 1123 of Regulation AB (the “Compliance Statement”), the report on assessment of the Company’s compliance with the servicing criteria set forth in Item 1122(d) of Regulation AB (the “Servicing Criteria”), provided in accordance with Rules 13a-18 and 15d-18 under Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Item 1122 of Regulation AB (the “Servicing Assessment”), the registered public accounting firm’s attestation report provided in accordance with Rules 13a-18 and
15d-18 under the Exchange Act and Section 1122(b) of Regulation AB (the “Attestation Report”), and all servicing reports, officer’s certificates and other information relating to the servicing of the 20[__]-[__] Contracts and 20[__]-[__] Leased Vehicles by the Company during 20__ that were delivered by the Company to the 20[__]-[__] Securitization Trust, the Depositor and the Titling Trustee pursuant to the Agreement (collectively, the “Company Servicing Information”);

 

(2)           Based on my knowledge, the Company Servicing Information, taken as a whole, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in the light of the circumstances under which such statements were made, not misleading with respect to the period of time covered by the Company Servicing Information;

 

(3)           Based on my knowledge, all of the Company Servicing Information required to be provided by the Company under the Agreement has been provided to the 20[__]-[__] Securitization Trust, the Depositor and the Titling Trustee;

 

(4)           I am responsible for reviewing the activities performed by the Company as servicer under the Agreement, and based on my knowledge and the compliance review conducted in preparing the Compliance Statement and except as disclosed in the Compliance Statement, the Servicing Assessment or the Attestation Report, the Company has fulfilled its obligations under the Agreement in all material respects; and

 

(5)           The Compliance Statement required to be delivered by the Company pursuant to the Agreement, and the Servicing Assessment and Attestation Report required

 

  

Exhibit D-1

  

to be provided by the Company and by any Subservicer or Subcontractor pursuant to the Agreement, have been provided to the 20[__]-[__] Securitization Trust, the Depositor and the Titling Trustee.  Any material instances of noncompliance described in such reports have been disclosed to the 20[__]-[__] Securitization Trust, the Depositor and the Titling Trustee.  Any material instance of noncompliance with the Servicing Criteria has been disclosed in such reports.

 

	 	

Date:           _____________

By:  ___________________________

        Name:

        Title:

 

 

 

 

 

 

 

  

Exhibit D-2

  

EXHIBIT E

SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

 

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

 

	
Reference

 

	
Criteria

	  
	  	
General Servicing Considerations

 

	  
	
1122(d)(1)(i)

	
Policies and procedures are instituted to monitor any performance or other triggers and events of default in accordance with the transaction agreements.

	
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

	
1122(d)(1)(iii)

	
Any requirements in the transaction agreements to maintain a back-up servicer for the receivables are maintained.

	
N/A

	
1122(d)(1)(iv)

	
A fidelity bond and errors and omissions policy is in effect on the party participating in the servicing function throughout the reporting period in the amount of coverage required by and otherwise in accordance with the terms of the transaction agreements.

	
N/A

	  	
Cash Collection and Administration

 

	  
	
1122(d)(2)(i)

	
Payments on receivables are deposited into the appropriate custodial bank accounts and related bank clearing accounts no more than two business days following receipt, or such other number of days specified in the transaction agreements.

	
X

	
1122(d)(2)(ii)

	
Disbursements made via wire transfer on behalf of an obligor or to an investor are made only by authorized personnel.

	
X1

	
1122(d)(2)(iii)

	
Advances of funds or guarantees regarding collections, cash flows or distributions, and any interest or other fees charged for such advances, are made, reviewed and approved as specified in the transaction agreements.

	
N/A

	
1122(d)(2)(iv)

	
The related accounts for the transaction, such as cash reserve accounts or accounts established as a form of overcollateralization, are separately maintained (e.g., with respect to commingling of cash) as set forth in the transaction agreements.

	
X

	
1122(d)(2)(v)

	
Each custodial account is maintained at a federally insured depository institution as set forth in the transaction agreements. For purposes of this criterion, “federally insured depository institution” with respect to a foreign financial institution means a foreign financial institution that meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange Act.

	
X

	
1122(d)(2)(vi)

	
Unissued checks are safeguarded so as to prevent unauthorized access.

	
N/A

 

1 Solely as it relates to remittance to the 20[__]-[__] Securitization Trustee.

  

  

  

	
 Reference

 

	 Criteria	 
	
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

	  	
Investor Remittances and Reporting

 

	  
	
1122(d)(3)(i)

	
Reports to investors, including those to be filed with the Commission, are maintained in accordance with the transaction agreements and applicable Commission requirements. Specifically, such reports (A) are prepared in accordance with timeframes and other terms set forth in the transaction agreements; (B) provide information calculated in accordance with the terms specified in the transaction agreements; (C) are filed with the Commission as required by its rules and regulations; and (D) agree with investors’ or the trustee’s records as to the total unpaid principal balance and number of receivables 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.

	
X2

	
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.

	
X3

	
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.

	
X3

	  	
Pool Asset Administration

 

	  
	
1122(d)(4)(i)

	
Collateral or security on receivables is maintained as required by the transaction agreements or related receivables documents.

	
X

	
1122(d)(4)(ii)

	
Receivables and related documents are safeguarded as required by the transaction agreements

	
X

	
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

 

2 Solely as it relates to allocation and remittance to the 20[__]-[__] Securitization Trustee.

3 Solely as it relates to remittance to the 20[__]-[__] Securitization Trustee.

  

  

  

	
 Reference

 

	 Criteria	 
	
1122(d)(4)(iv)

	
Payments on receivables, including any payoffs, made in accordance with the related receivables 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 receivables documents.

	
X

	
1122(d)(4)(v)

	
The Servicer’s records regarding the receivables agree with the Servicer’s records with respect to an obligor’s unpaid principal balance.

	
X

	
1122(d)(4)(vi)

	
Changes with respect to the terms or status of an obligor’s receivables (e.g., loan modifications or re-agings) are made, reviewed and approved by authorized personnel in accordance with usual customary procedures.

	
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 usual customary procedures.

	
X

	
1122(d)(4)(viii)

	
Records documenting collection efforts are maintained during the period a receivable 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 receivables 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 receivables with variable rates are computed based on the related receivables documents.

	
N/A

	
1122(d)(4)(x)

	
Regarding any funds held in trust for an obligor (such as escrow accounts): (A) such funds are analyzed, in accordance with the obligor’s receivables 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 receivables documents and state laws; and (C) such funds are returned to the obligor within 30 calendar days of full repayment of the related receivables, or such other number of days specified in the transaction agreements.

	
N/A

	
1122(d)(4)(xi)

	
Payments made on behalf of an obligor (such as tax or insurance payments) are made on or before the related penalty or expiration dates, as indicated on the appropriate bills or notices for such payments, provided that such support has been received by the servicer at least 30 calendar days prior to these dates, or such other number of days specified in the transaction agreements.

	
N/A

	
1122(d)(4)(xii)

	
Any late payment penalties in connection with any payment to be made on behalf of an obligor are paid from the servicer’s funds and not charged to the obligor, unless the late payment was due to the obligor’s error or omission.

	
N/A

	
1122(d)(4)(xiii)

	
Disbursements made on behalf of an obligor are posted within two business days to the obligor’s records maintained by the servicer, or such other number of days specified in the transaction agreements.

	
N/A

  

  

  

	
1122(d)(4)(xiv)

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

	
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

 

 

	 	

By:      _______________________________

    Name:

    Title:exhibit10-5.htm

Exhibit 10.5

 

TOYOTA AUTO LEASE TRUST 20[__]-[__]

(a Delaware Statutory Trust)

 

______________________________________

 

AMENDED AND RESTATED TRUST AGREEMENT

 

[among]/[between]

 

TOYOTA LEASING, INC.,

as Depositor,

 

[and]

 

[__________],

as Owner Trustee

 

[and

 

[__________],

as Delaware Trustee]

 

______________________________________________

 

Dated as of [                     ]

  

  

  

TABLE OF CONTENTS

 

	
ARTICLE I

DEFINITIONS

	  	  	  
	
Section 1.01.

	
Definitions

	
1

	
Section 1.02.

	
Usage of Terms

	
4

	
 

ARTICLE II

CREATION OF TRUST

	  	  	  
	
Section 2.01.

	
Creation of Trust

	
5

	
Section 2.02.

	
Office

	
5

	
Section 2.03.

	
Purposes and Powers

	
5

	
Section 2.04.

	
Power of Attorney

	
6

	
Section 2.05.

	
Declaration of Trust

	
6

	
Section 2.06.

	
Liability of the Certificateholders

	
6

	
Section 2.07.

	
Title to Trust Property

	
6

	
Section 2.08.

	
Situs of Trust

	
7

	
Section 2.09.

	
Representations and Warranties of the Depositor

	
7

	
Section 2.10.

	
Federal Income Tax Allocations

	
8

	
Section 2.11.

	
Covenants of the Trust

	
8

	
 

ARTICLE III

CERTIFICATES AND TRANSFER OF INTERESTS

 

	
Section 3.01.

	
The Certificates

	
9

	
Section 3.02.

	
Authentication of Certificates

	
9

	
Section 3.03.

	
Registration of Transfer and Exchange of Certificates

	
10

	
Section 3.04.

	
Mutilated, Destroyed, Lost or Stolen Certificate

	
13

	
Section 3.05.

	
Maintenance of Office or Agency

	
13

	
Section 3.06.

	
Appointment of Paying Agent

	
13

	
Section 3.07.

	
Persons Deemed Certificateholders

	
14

	
Section 3.08.

	
Access to List of Certificateholders’ Names and Addresses

	
14

	
 

ARTICLE IV

ACTIONS BY OWNER TRUSTEE OR THE CERTIFICATEHOLDERS

 

	
Section 4.01.

	
Prior Notice to the Certificateholders with Respect to Certain Matters

	
15

	
Section 4.02.

	
Action by the Certificateholders with Respect to Certain Matters

	
15

	
Section 4.03.

	
Action with Respect to Bankruptcy

	
16

	
Section 4.04.

	
Restrictions on the Certificateholders’ Power

	
16

	
Section 4.05.

	
Majority of the Certificates Control

	
16

	
 

ARTICLE V

APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

	
Section 5.01.

	
[Reserved]

	
17

	
Section 5.02.

	
Application of Amounts in Trust Accounts

	
17

	
Section 5.03.

	
Method of Payment

	
17

	
Section 5.04.

	
Accounting and Reports

	
18

	
Section 5.05.

	
Signature on Returns; Tax Matter Partner

	
18

  

-i-

  

	
ARTICLE VI

AUTHORITY AND DUTIES OF OWNER TRUSTEE

 

	
Section 6.01.

	
General Authority

	
18

	
Section 6.02.

	
General Duties

	
19

	
Section 6.03.

	
Duties of Owner Trustee

	
19

	
Section 6.04.

	
No Duties Except as Specified in this Agreement or in Instructions

	
21

	
Section 6.05.

	
No Action Except Under Specified Documents or Instructions

	
21

	
Section 6.06.

	
Restrictions

	
21

	
Section 6.07.

	
Owner Trustee to Provide Information

	
22

	
 

ARTICLE VII

CONCERNING THE OWNER TRUSTE [AND THE DELAWARE TRUSTEE]

 

	
Section 7.01.

	
Rights of the Owner Trustee [and the Delaware Trustee]

	
23

	
Section 7.02.

	
Furnishing of Documents

	
24

	
Section 7.03.

	
Representations and Warranties

	
24

	
Section 7.04.

	
Reliance; Advice of Counsel

	
26

	
Section 7.05.

	
Not Acting in Individual Capacity

	
26

	
Section 7.06.

	
Owner Trustee [and Delaware Trustee] Not Liable for the Certificates

	
27

	
Section 7.07.

	
Owner Trustee [and Delaware Trustee] May Own Certificates and Notes

	
27

	
Section 7.08.

	
[Reserved]

	
28

	
Section 7.09.

	
[Duties of the Delaware Trustee]

	
28

	
 

ARTICLE VIII

COMPENSATION OF OWNER TRUSTEE [AND DELAWARE TRUSTEE]

 

	
Section 8.01.

	
Owner Trustee’s [and Delaware Trustee’s] Fees and Expenses

	
28

	
Section 8.02.

	
Indemnification

	
28

	
Section 8.03.

	
Payments to the Owner Trustee [and the Delaware Trustee]

	
29

	
 

ARTICLE IX

TERMINATION OF TRUST AGREEMENT

 

	
Section 9.01.

	
Termination of Trust Agreement

	
29

	
 

ARTICLE X

SUCCESSOR OWNER TRUSTEES [AND DELAWARE TRUSTEES]; ADDITIONAL OWNER TRUSTEES [AND DELAWARE TRUSTEES]

 

	
Section 10.01.

	
Eligibility Requirements for Owner Trustee [and Delaware Trustee]

	
30

	
Section 10.02.

	
Resignation or Removal of Owner Trustee [or Delaware Trustee]

	
31

	
Section 10.03.

	
Successor Owner Trustee [or Delaware Trustee]

	
32

	
Section 10.04.

	
Merger or Consolidation of Owner Trustee [or Delaware Trustee]

	
32

	
Section 10.05.

	
Appointment of Co-Trustee or Separate Trustee

	
33

	
Section 10.06.

	
Power of Attorney for Co-Trustee or Separate Trustee

	
34

	
 

ARTICLE XI

TAX MATTERS

 

	
Section 11.01.

	
Tax and Accounting Characterization

	
34

  

-ii-

  

	
Section 11.02.

	
Tax Reporting

	
34

	
 

ARTICLE XII

MISCELLANEOUS

 

	
Section 12.01.

	
Supplements and Amendments

	
34

	
Section 12.02.

	
No Legal Title to Trust Estate in the Certificateholders

	
36

	
Section 12.03.

	
Limitations on Rights of Others

	
36

	
Section 12.04.

	
Notices

	
36

	
Section 12.05.

	
Severability

	
37

	
Section 12.06.

	
Counterparts

	
37

	
Section 12.07.

	
Successors and Assigns

	
37

	
Section 12.08.

	
No Petition

	
37

	
Section 12.09.

	
No Recourse

	
38

	
Section 12.10.

	
Headings

	
38

	
Section 12.11.

	
Governing Law

	
38

	
Section 12.12.

	
TMCC Payment Obligation

	
38

	
 

ARTICLE XIII

COMPLIANCE WITH REGULATION AB

 

	
Section 13.01.

	
Intent of the Parties; Reasonableness

	
38

EXHIBITS

	
EXHIBIT A

	
Form of Certificate

	
A-1

	
EXHIBIT B

	
Form of Rule 144A Certificate

	
B-1

	
EXHIBIT C

	
Form of Rule 144A Letter

	
C-1

	
EXHIBIT D

	
Form of Investment Letter

	
D-1

  

-iii-

  

AMENDED AND RESTATED TRUST AGREEMENT, dated as of [__________], by and [between]/[among] TOYOTA LEASING, INC., a California corporation, as depositor, [and] [__________], a [__________], not in its individual capacity but solely as Owner Trustee, [and [__________], a [__________], not in its individual capacity but solely as Delaware Trustee], amending and restating in its entirety the Trust Agreement dated as of [______________] (the “Original Trust Agreement”), by and [between]/[among] TOYOTA LEASING, INC., a Delaware limited liability company, as depositor, [and] [__________], a [__________], as owner trustee, [and [__________], a [__________], not in its individual capacity but solely as Delaware
Trustee], and herein referred to as the “Trust Agreement” or this “Agreement.”

 

IN CONSIDERATION of the mutual agreements herein contained, and of other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

Section 1.01. Definitions.  Except as otherwise specified herein or if the context may otherwise require, capitalized terms used but not otherwise defined herein have the meanings ascribed thereto in the SUBI Trust Agreement, the Servicing Agreement and the Indenture for all purposes of this Trust Agreement.  Except as otherwise provided in this Agreement, whenever used herein the following words and phrases, unless the context otherwise requires, shall have the
following meanings:

 

“Administration Agreement” means the Administration Agreement dated as of [__________], by and among the Trust, as issuer, TMCC, as Administrator and the Indenture Trustee, pursuant to which TMCC undertakes to perform certain of the duties and obligations of the Trust and the Owner Trustee hereunder and under the Indenture.

 

“Administrator” means TMCC acting in its capacity as Administrator under the Administration Agreement.

 

“Agreement” means this Amended and Restated Trust Agreement, as the same may be amended and supplemented from time to time.

 

“Basic Documents” means this Agreement, the Certificate of Trust, the Servicing Agreement, the SUBI Trust Agreement, the Indenture, the Administration Agreement, the Issuer SUBI Certificate Transfer Agreement, the SUBI Certificate Transfer Agreement, the Back-Up Security Agreement, the Note Depository Agreement and the other documents and certificates delivered in connection herewith and therewith.

 

“Benefit Plan” means an “employee benefit plan” as defined in Section 3(3) of ERISA, which is subject to the provisions of Title I of ERISA, a “plan” described in and subject to Section 4975 of the Code, an entity whose underlying assets include “plan assets” by reason of an employee benefit plan’s or plan’s investment in the entity, or any other employee benefit plan

 

  

  

  

that is subject to a law that is similar to the fiduciary responsibility or prohibited transaction provisions of ERISA or Section 4975 of the Code.

 

“Certificate” means any of the Certificates executed by the Trust and authenticated by the Owner Trustee, evidencing a beneficial interest in the Trust, substantially in the form attached hereto as Exhibit A.

 

“Certificate of Trust” means the Certificate of Trust filed with respect to the formation of the Trust pursuant to Section 3810(a) of the Statutory Trust Act, as amended, corrected or restated from time to time.

 

“Certificate Register” means the register maintained pursuant to Section 3.03.

 

“Certificate Registrar” means [__________], unless and until a successor thereto is appointed pursuant to Section 3.03. The Certificate Registrar initially designates its offices at [__________], as its offices for purposes of Section 3.03.

 

“Certificateholder” or “Holder” means a Person in whose name a Certificate is registered in the Certificate Register.

 

“Code” means the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder.

 

“Corporate Trust Office” means, with respect to the Owner Trustee, the principal corporate trust office of the Owner Trustee located at [__________]; or at such other address as the Owner Trustee may designate by notice to the Certificateholder, or the principal corporate trust office of any successor Owner Trustee (the address of which the successor Owner Trustee will notify the Certificateholder).

 

[“Delaware Trustee” means [__________], a [__________], not in its individual capacity but solely as Delaware trustee under this Agreement, and any successor Delaware Trustee hereunder.]

 

“Depositor” means TLI in its capacity as depositor hereunder.

 

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

 

“Expenses” shall have the meaning assigned to such term in Section 8.02.

 

“Indenture” means the Indenture, dated as of [__________], entered into between the Trust and [__________], a [__________], as Indenture Trustee, pursuant to which a series of Notes are issued.

 

“Issuer SUBI Certificate Transfer Agreement” means that certain issuer SUBI certificate transfer agreement, dated as of [__________], between the Depositor and the Trust, as amended or supplemented from time to time.

 

  

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“Non-U.S. Person” means any Person who is not (i) a citizen or resident of the United States who is a natural person, (ii) a corporation or partnership (or an entity treated as a corporation or partnership) created or organized in or under the laws of the United States or any state thereof, including the District of Columbia (unless, in the case of a partnership, Treasury Regulations are adopted that provide otherwise), (iii) an estate, the income of which is subject to United States federal income taxation, regardless of its source or (iv) a trust, if a court within the United States is able to exercise primary
supervision over the administration of the trust and one or more United States persons (as such term is defined in the Code and Treasury Regulations) have the authority to control all substantial decisions of the trust; except that, to the extent provided in Treasury Regulations, certain trusts in existence prior to August 20, 1996 which elected to be treated as United States Persons prior to such date also shall be U.S. Persons.

 

“Notes” means the notes issued by the Trust pursuant to the Indenture, having the payment and other terms set forth in the Indenture.

 

“Original Trust Agreement” shall have the meaning assigned to such term in the introductory paragraph to this Agreement.

 

“Owner Trustee” means [__________], a [_________], not in its individual capacity but solely as Owner Trustee under this Agreement, and any successor Owner Trustee hereunder.

 

“Paying Agent” means any paying agent or co-paying agent appointed pursuant to Section 3.06, and shall initially be the Owner Trustee.

 

“Percentage Interest” shall mean, with respect to each Certificate, the percentage interest in the Trust represented by such Certificate.

 

“Record Date” means, with respect to the Notes of any Class and each Payment Date, the calendar day immediately preceding such Payment Date or, if Definitive Notes representing any Class of Notes have been issued, the last day of the month immediately preceding the month in which such Payment Date occurs.  Any amount stated “as of a Record Date” or “on a Record Date” shall give effect to (i) all applications of collections, and (ii) all payments and distributions to any party under this Agreement, the Indenture and the Trust Agreement or to the related Obligor, as the case may be, in each case
as determined as of the opening of business on the related Record Date.

 

“Responsible Officer” means, with respect to the Owner Trustee, any vice president, assistant vice president, secretary, assistant secretary working it its corporate trust department and having direct responsibility for the administration of this Trust Agreement and with respect to a particular matter to whom such matter is referred because of such officer’s knowledge and familiarity with the particular subject.

 

“Secretary of State” means the Secretary of State of the State of Delaware.

 

“Servicing Agreement” means the Titling Trust Agreement, as supplemented by the 20[__]-[__] SUBI Servicing Supplement, dated as of [__________],among the Servicer, the Titling Trustee and the Trust Agent, pursuant to which the terms of the Titling Trust Agreement

 

  

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will be supplemented insofar as they apply to the 20[__]-[__] SUBI Portfolio, providing for further servicing obligations that will benefit the holders of the 20[__]-[__] SUBI Certificate.

 

“Special Purpose Affiliate” means any special purpose corporation, partnership, limited liability company or other vehicle created for the purpose of a Securitized Financing involving a SUBI.

 

“Statutory Trust Act” means Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code § 3801 et seq., as the same may be amended from time to time.

 

“SUBI Trust Agreement” means the Titling Trust Agreement as supplemented by the 20[__]-[__] SUBI Supplement, dated as of [__________], by and among TMCC, the Titling Trustee and the Trust Agent, pursuant to which the Titling Trustee, at the direction of TMCC, will create a special unit of beneficial interest in the Titling Trust.

 

“Titling Trust Agreement” the amended and restated trust and servicing agreement, dated as of October 1, 1996, among the Servicer, the Titling Trustee and the Trust Agent.

 

“Titling Trustee” means TMTT, Inc., a Delaware corporation, its successors and assigns.

 

“TLI” means Toyota Leasing, Inc., a California corporation, its successors and assigns.

 

“TMCC” means Toyota Motor Credit Corporation, a California corporation, its successors and assigns.

 

“Treasury Regulations” means regulations, including proposed or temporary regulations, promulgated under the Code.  References herein to specific provisions of proposed or temporary regulations shall include analogous provisions of final Treasury Regulations or other successor Treasury Regulations.

 

“Trust” means the Toyota Auto Lease Trust 20[__]-[__], a Delaware statutory trust existing pursuant to this Agreement and the filing of the Certificate of Trust.

 

“Trust Agent” means U.S. Bank National Association, a national banking association (formerly, First Bank National Association), its successors and assigns.

 

“Trust Estate” shall have the meaning ascribed thereto in the Indenture.

 

Section 1.02. Usage of Terms.  With respect to all terms in this Agreement, the singular includes the plural and the plural the singular; words importing any gender include the other genders; references to “writing” include printing, typing, lithography and other means of reproducing words in a visible form; references to agreements and other contractual instruments include all subsequent amendments, amendments and restatements and supplements thereto or changes
therein entered into in accordance with their respective terms and not prohibited by this Agreement; references to Persons include their permitted successors and assigns; and the term “including” means “including without limitation.”

 

  

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ARTICLE II

 

CREATION OF TRUST

 

Section 2.01. Creation of Trust.  A Delaware statutory trust known as “Toyota Auto Lease Trust 20[__]-[__]” was formed in accordance with the provisions of the Statutory Trust Act pursuant to the Original Trust Agreement.  The Owner Trustee is hereby authorized and vested with the power and authority to make and execute contracts, instruments, certificates, agreements and other writings on behalf of the Trust as set forth herein and to sue and be sued on
behalf of the Trust.

 

The Owner Trustee accepted under the Original Trust Agreement, and does hereby confirm its acceptance and agreement to hold in trust, for the benefit of the Certificateholders and such other Persons as may become beneficiaries hereunder from time to time, all of the Trust Estate conveyed or to be conveyed to the Trust and all monies and proceeds that may be received with respect thereto, subject to the terms of this Agreement.

 

Section 2.02. Office.  The principal place of business of the Trust for purposes of Delaware law shall be in care of the [Delaware Trustee]/[Owner Trustee] at [__________], or at such other address in Delaware as the Delaware Trustee may designate by written notice to the Certificateholders and the Servicer. The Trust may establish additional offices located at such place or places inside or outside of the State of Delaware as the Owner Trustee may designate from time to time by written notice to the
Certificateholders and the Servicer.  The New York, New York office of the Trust shall be in care of the Owner Trustee at the Corporate Trust Office or at such other address in New York as the Owner Trustee may designate by written notice to the Certificateholders and the Servicer.

 

Section 2.03. Purposes and Powers.

 

(a)   The purpose of the Trust is, and the Trust shall have the power and authority and is authorized, to engage in the following activities:

 

(i)        to issue Notes pursuant to the Indenture and Certificates pursuant to this Agreement;

 

(ii)       to acquire the 20[__]-[__] SUBI Certificate and related property from the Depositor in exchange for the Notes and Certificates, and to hold and manage the Trust Estate;

 

(iii)     to assign, grant, transfer, pledge, mortgage and convey the Trust Estate pursuant to, and on the terms and conditions set forth in, the Indenture and to hold, manage and distribute to Certificateholders pursuant to the terms of this Agreement and the Indenture any portion of the Trust Estate released from the Lien of, and remitted to the Trust pursuant to, the Indenture as set forth therein;

 

(iv)     to engage in those activities, including entering into and performing such agreements (including, without limitation, the Basic Documents) that are necessary,

 

  

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suitable or convenient to accomplish the foregoing or are incidental thereto or connected therewith; and

 

(v)     subject to compliance with the Basic Documents, to engage in such other activities as may be required in connection with conservation of the Trust Estate and the making of distributions to the Certificateholders and the Noteholders and in respect of amounts to be released to the Depositor, the Servicer, the Administrator and third parties, if any.

 

(b)   The Trust shall not engage in any activity other than in connection with the foregoing and as required or authorized by the terms of the Basic Documents.

 

Section 2.04. Power of Attorney.  Pursuant to the Administration Agreement, the Trust has authorized the Administrator to perform certain of its administrative duties hereunder, including duties with respect to the management of the Trust Estate, and in connection therewith hereby grants the Administrator its revocable power of attorney.

 

Section 2.05. Declaration of Trust.  The Owner Trustee hereby declares that it shall hold the Trust Estate in trust upon and subject to the conditions set forth herein for the use and benefit of the Certificateholders, who are intended to be “beneficial owners” within the meaning of the Statutory Trust Act, subject to the obligations of the Trust under the Basic Documents.  It is the intention of the parties hereto that the Trust constitute a statutory trust
under the Statutory Trust Act, and that this Agreement constitute the governing instrument of such statutory trust.  It is the intention of the parties hereto that, solely for income and franchise tax purposes, the Trust shall be treated as a division or branch of the Person holding the beneficial interests in the Trust for any period during which the beneficial interests in the Trust are held by more than one Person, with the assets of the partnership being the 20[__]-[__] SUBI Certificate and other assets held by the Trust, and the Notes being debt of the partnership.  The parties agree that for any such period, unless otherwise required by appropriate tax authorities, the Trust will file or cause to be filed annual or other necessary returns, reports and other forms consistent with such characterization of the Trust for tax purposes.  Effective as of the
date hereof, the Owner Trustee [and the Delaware Trustee] and, solely to the extent set forth in the Administration Agreement, the Administrator shall have all rights, powers and duties set forth herein and in the Statutory Trust Act with respect to accomplishing the purposes of the Trust.  At the direction of the Depositor, the Delaware Trustee caused to be filed a certificate of trust for the Trust pursuant to the Statutory Trust Act and shall file or cause to be filed such amendments thereto as shall be necessary or appropriate to satisfy the purposes of this Agreement and as shall be consistent with the provisions hereof.

 

Section 2.06. Liability of the Certificateholders.  No Certificateholder shall have any personal liability for any liability or obligation of the Trust, solely by reason of it being a Certificateholder.

 

Section 2.07. Title to Trust Property.  Legal title to the Trust Estate shall be vested at all times in the Trust as a separate legal entity.

 

  

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Section 2.08. Situs of Trust.  The Trust will be located in Delaware and administered in Delaware, New York and California.  All bank accounts maintained by the Owner Trustee on behalf of the Trust shall be located in the State of Delaware or the State of New York.  The Trust shall not have any employees in any state other than Delaware; provided, however, that nothing herein shall restrict or prohibit the Owner Trustee from having employees within or without
the State of Delaware.  Payments will be received by the Trust only in Delaware or New York, and payments will be made by the Trust only from Delaware or New York.

 

Section 2.09. Representations and Warranties of the Depositor.  The Depositor hereby represents and warrants to the Owner Trustee [and the Delaware Trustee] that as of the Closing Date:

 

(a)   The Depositor is duly organized and validly existing as a corporation in good standing under the laws of the State of California, with power and authority to own its properties and to conduct its business as such properties are currently owned and such business is presently conducted, and had at all relevant times and has power, authority and legal right to acquire, own and sell the 20[__]-[__] SUBI Certificate.

 

(b)   The Depositor is duly qualified to do business as a foreign corporation in good standing, and has obtained all necessary licenses and approvals in all jurisdictions in which the ownership or lease of property or the conduct of its business shall require such qualifications and where the failure to so qualify will have a material adverse effect on the ability of the Depositor to conduct its business or perform its obligations under this Agreement.

 

(c)   The Depositor has (i) the power and authority to execute and deliver this Agreement and to carry out its terms; (ii) good title to and is the sole legal and beneficial owner of the 20[__]-[__] SUBI Certificate, free and clear of Liens and claims; (iii) full power and authority to transfer the 20[__]-[__] SUBI Certificate to and deposit the same with the Trust; (iv) duly authorized such transfer and deposit to the Trust by all necessary corporate action; and (v) duly authorized the execution, delivery and performance of this Agreement by the Depositor by all necessary action.

 

(d)   This Agreement shall constitute a legal, valid and binding obligation of the Depositor enforceable in accordance with its terms, except as such enforceability may be subject to or limited by bankruptcy, insolvency, reorganization, moratorium, liquidation, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights in general and by general principles of equity, regardless of whether such enforceability shall be considered in a proceeding in equity or in law.

 

(e)   The consummation of the transactions contemplated by this Agreement and the fulfillment of the terms hereof do not conflict with, result in any breach of any of the terms and provisions of, nor constitute (with or without notice or lapse of time) a default under, the articles of incorporation of the Depositor or conflict with or breach any of the terms or provisions or constitute (with or without notice or lapse of time) a default under any indenture, agreement or other instrument to which the Depositor is a party or by which it is bound, nor result in the creation or imposition of any
Lien upon any of its properties pursuant to the terms of any such indenture, agreement or other instrument (other than pursuant to the Basic Documents); nor

 

  

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violate any law or, to the best of the Depositor’s knowledge, any order, rule or regulation applicable to the Depositor of any court or of any federal or state regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Depositor or its properties which breach, default, conflict, Lien or violation would have a material adverse effect on the earnings, business affairs or business prospects of the Depositor.

 

(f)   There is no action, suit or proceeding before or by any court or governmental agency or body, domestic or foreign, now pending, or to the best of the Depositor’s knowledge, threatened, against or affecting the Depositor: (i) asserting the invalidity of this Agreement, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement, (iii) seeking any determination or ruling that might materially and adversely affect the performance by the Depositor of its obligations under, or the validity or enforceability of, this Agreement or
(iv) relating to the Depositor and which might adversely affect the federal income tax attributes of the Trust or the Certificate or the Notes.

 

Section 2.10.  Federal Income Tax Allocations.  To the extent required for federal income tax purposes, net income or net losses of the Trust for any month as determined for federal income tax purposes (and each item of income, gain, loss and deduction entering into the computation thereof) shall be allocated to the Certificateholders in proportion to their interests (to the extent not previously allocated pursuant to
this clause).  The Depositor is authorized to modify the allocations in this paragraph if necessary or appropriate, in its sole discretion for the allocations to fairly reflect the economic income, gain or loss to the Certificateholders, as otherwise required by the Code.

 

Section 2.11. Covenants of the Trust.  The Trust covenants and agrees to the following:

 

(a)   to maintain books and records separate from any other person or entity;

 

(b)   to maintain its accounts separate from those of any other person or entity, except as permitted by the Trust Agreement or any other Basic Document;

 

(c)   not to commingle assets with those of any other entity, except as permitted by the Trust Agreement or any other Basic Document;

 

(d)   to conduct its own functions in its own name;

 

(e)   to maintain separate financial statements or records;

 

(f)   to pay its own liabilities out of its own funds, except as permitted by the Trust Agreement or any other Basic Document;

 

(g)   to maintain an arm's-length relationship with its Affiliates;

 

(h)   to pay the salaries of its own employees and maintain a sufficient number of employees or adequate service providers in light of its contemplated business operations;

 

(i)   to allocate fairly and reasonably any overhead for shared office space;

 

  

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(j)   to hold itself out as a separate entity;

 

(k)   to correct any known misunderstanding regarding its separate identity;

 

(l)   not to guarantee or become obligated for the debts of any other affiliated or unaffiliated third party or hold out its credit as being available to satisfy the obligations of others (except as otherwise specified in the Basic Documents); and

 

(m)      to take such actions as are necessary to ensure that any financial statements of TMCC or any Affiliate thereof that are consolidated to include the Trust will contain detailed notes clearly stating that (i) all of the Trust’s assets are owned by the Trust, and (ii) the Trust is a separate entity with its own separate creditors that will be entitled to be satisfied out of the Trust’s assets prior to any value in the Trust becoming available to the Trust’s equity holders; and the accounting records and the published financial statements of TMCC will
clearly show that, for accounting purposes, TMCC's interest in the Collateral has been sold or contributed to the Trust.

 

ARTICLE III

 

CERTIFICATES AND TRANSFER OF INTERESTS

 

Section 3.01. The Certificates.  The Certificates shall be substantially in the form set forth in Exhibit A. Except for the issuance of the Certificate to the Depositor, no Certificate may be sold, pledged or otherwise transferred to any Person except in accordance with Section 3.03 and Section 3.09, as applicable, and any attempted sale, pledge or transfer in violation of Section 3.03 or Section 3.09, as applicable, shall be null and void.

 

The Certificates, evidencing a beneficial interest in the Trust, shall be executed on behalf of the Trust by manual or facsimile signature of an Authorized Officer of the Owner Trustee and authenticated on behalf of the Owner Trustee by the manual or facsimile signature of an Authorized Officer of the Owner Trustee.  Certificates bearing the manual or facsimile signatures of individuals who were, at the time when such signatures shall have been affixed, authorized to sign on behalf of the Trust, shall be valid and binding obligations of the Trust, notwithstanding that such individuals or any of them shall have ceased to be so authorized prior to the authentication and delivery of such Certificates or
did not hold such offices at the date of authentication and delivery of such Certificates.

 

The Certificates may be printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized denomination in the form of Exhibit A hereto.  The Certificates shall be issued in minimum denominations of a Percentage Interest of 5.00% and integral multiples of 5.00% in excess thereof.

 

A transferee of a Certificate shall become a Certificateholder, and shall be entitled to the rights and subject to the obligations of a Certificateholder hereunder, upon such transferee’s acceptance of a Certificate duly registered in such transferee’s name pursuant to Section 3.03.

 

Section 3.02. Authentication of Certificates.  Concurrently with the initial transfer of the 20[__]-[__] SUBI Certificate to the Trust, the Owner Trustee shall cause to be executed,

 

  

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authenticated and delivered on behalf of the Trust to or upon the written order of the Depositor, Certificates evidencing the entire beneficial interest in the Trust.  No Certificate shall entitle its holder to any benefit under this Agreement or be valid for any purpose, unless there shall appear on such Certificate a certificate of authentication substantially in the form set forth in Exhibit A, executed by the Owner Trustee or the Owner Trustee’s authenticating agent, by manual or facsimile signature of an Authorized Officer, and such authentication shall constitute conclusive evidence, and the only evidence, that such Certificate shall have been duly authenticated and delivered
hereunder.  All Certificates shall be dated the date of their authentication.  The Owner Trustee shall be the initial authenticating agent of the Trust hereunder.

 

Section 3.03. Registration of Transfer and Exchange of Certificates.

 

(a)   The Certificate Registrar shall keep or cause to be kept, at the office or agency maintained pursuant to Section 3.05, a Certificate Register in which, subject to such reasonable regulations as it may prescribe, the Certificate Registrar shall provide for the registration of Certificates and of transfers and exchanges of Certificates as herein provided.  [___________] shall be the initial Certificate Registrar.  In the event that the Certificate Registrar shall for any reason become unable to act as Certificate Registrar, the Certificate Registrar shall promptly give
written notice to such effect to the Depositor, the Owner Trustee and the Servicer.  Upon receipt of such notice, the Depositor or its designee shall appoint another bank or trust company to act as successor Certificate Registrar under this Agreement, which entity will agree to act in accordance with the provisions of this Agreement applicable to it as successor Certificate Registrar, and otherwise acceptable to the Owner Trustee.

 

(b)   Each Certificate shall bear a legend regarding reoffers, resales, pledges and transfers to the effect of the legend on the form of Certificate attached as Exhibit A hereto, unless determined otherwise by the Administrator (as certified to the Certificate Registrar in an Officer’s Certificate) consistent with applicable law.

 

As a condition to the registration of any transfer of a Certificate, the prospective transferee shall be required to represent in writing to the Owner Trustee, the Depositor and the Certificate Registrar the following:

 

(i)   It has neither acquired nor will it transfer any Certificate it purchases (or any interest therein) or cause any such Certificates (or any interest therein) to be marketed on or through an “established securities market” within the meaning of Section 7704(b)(1) of the Code, including, without limitation, an over-the-counter-market or an interdealer quotation system that regularly disseminates firm buy or sell quotations.

 

(ii)   It will be the beneficial owner of the Certificate and it either (A) is not, and will not become, a partnership, Subchapter S corporation or grantor trust for U.S. federal income tax purposes or (B) is such an entity, but none of the direct or indirect beneficial owners of any of the interests in such transferee have allowed or caused, or will allow or cause, 50% or more (or such other percentage as the Depositor may establish prior to the time of such proposed transfer) of the

 

  

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value of such interests to be attributable to such transferee’s ownership of Certificates.

 

(iii)   It understands that no subsequent transfer of the Certificates is permitted unless (A) such transfer is of a Certificate with a denomination of at least a Percentage Interest of 5.00%, (B) it causes its proposed transferee to provide to the Trust and the Certificate Registrar a letter substantially in the form of Exhibit C hereto, or such other written statement as the Depositor shall prescribe and (C) the Depositor consents in writing to the proposed transfer, which consent shall be granted unless the Depositor determines that such transfer would create a
risk that the Trust or the Titling Trust would be classified for federal or any applicable state tax purposes as an association (or a publicly traded partnership) taxable as a corporation; provided, however, that any attempted transfer that would either cause the number of holders of direct or indirect interests in the Titling Trust to exceed 50, shall be a void transfer.

 

(iv)   It understands that the Opinion of Counsel to the Trust that the Trust is not a publicly traded partnership taxable as a corporation is dependent in part on the accuracy of the representations in paragraphs (i), (ii) and (iii) above.

 

(v)   It is not a Benefit Plan nor will it hold the Certificates being transferred for the account of a Benefit Plan.

 

(vi)   It is a Person who is either (A)(1) a citizen or resident of the United States or (2) a corporation or partnership (including any entity treated as a corporation or partnership for U.S. income tax purposes) organized in or under the laws of the United States, any state or the District of Columbia or (B) an estate the income of which is includible in gross income for federal income tax purposes, regardless of source or a trust if a court within the United States is able to exercise primary supervision of the administration of the trust and one or more U.S.
Persons (as such term is defined in the Code) have the authority to control all substantial decisions of the trust.  It agrees that it will provide a certification of non-foreign status signed under penalty of perjury (and such other certifications, representations or Opinions of Counsel as may be requested by the Depositor, the Owner Trustee and the Certificate Registrar).

 

(vii)   It understands that any purported transfer of any Certificate (or any interest therein) in contravention of any of the restrictions and conditions in this Section shall be void, and the purported transferee in such transfer shall not be recognized by the Trust or any other Person as a Certificateholder for any purpose.

 

(c)   By acceptance of any Certificate, the related Certificateholder specifically agrees with and represents to the Depositor, the Trust and Certificate Registrar that no transfer of such Certificate shall be made unless the registration requirements of the Securities Act and any applicable state securities laws are complied with, or such transfer is exempt from the

 

  

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registration requirements under the Securities Act because the transfer satisfies one of the following:

 

(i)   Such transfer is in compliance with Rule 144A, to a transferee who the depositor reasonably believes is a Qualified Institutional Buyer that is purchasing for its own account or for the account of a Qualified Institutional Buyer and to whom notice is given that such transfer is being made in reliance upon Rule 144A and (A) the depositor thereof executes and delivers to the Depositor and the Certificate Registrar, a Rule 144A certificate substantially in the form attached as Exhibit B and (B) the transferee executes and delivers to the Depositor and the
Certificate Registrar an investment letter substantially in the form attached as Exhibit C.

 

(ii)   After the appropriate holding period, such transfer is pursuant to an exemption from registration under the Securities Act provided by Rule 144 under the Securities Act and the transferee, if requested by the Depositor or the Certificate Registrar, delivers an Opinion of Counsel in form and substance satisfactory to the Depositor.

 

(iii)   Such transfer is to an institutional accredited investor as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D promulgated under the Securities Act in a transaction exempt from the registration requirements of the Securities Act, such transfer is in accordance with any applicable securities laws of any State or any other jurisdiction, and such investor executes and delivers to the Trust and the Certificate Registrar an investment letter substantially in the form attached as Exhibit D.

 

(d)   Upon surrender for registration of transfer or exchange of any Certificate at the office or agency maintained pursuant to Section 3.05 and upon compliance with the provisions of this Agreement relating to such transfer or exchange, the Owner Trustee shall execute, authenticate and deliver (or shall cause its authenticating agent to authenticate and deliver), in the name of the designated transferee or transferees, one or more new Certificates dated the date of authentication by the Owner Trustee or any authenticating agent. The
preceding provisions of this Section notwithstanding, (i) the Owner Trustee shall not make, and the Certificate Registrar shall not register, transfer or exchanges of Certificates for a period of 15 days preceding the due date for any payment with respect to the Certificates and (ii) the Owner Trustee shall permit the registration, transfer and exchange of Certificates only in minimum denominations of a Percentage Interest of 5.00% and integral multiples of 5.00% in excess thereof.

 

The Certificate Registrar shall require that every Certificate presented or surrendered for registration of transfer or exchange shall be accompanied by a written instrument of transfer and accompanied by IRS Form W-9 (or successor form) or such other form as may be reasonably required in form satisfactory to the Owner Trustee and the Certificate Registrar duly executed by the Holder or his attorney duly authorized in writing. Each Certificate surrendered for registration of transfer or exchange shall be cancelled and disposed of by the Owner Trustee in accordance with its customary practice.

 

  

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

 

(e)   The provisions of this Section generally are intended, among other things, to prevent the Trust from being characterized as a “publicly traded partnership” within the meaning of Section 7704 of the Code, in reliance on Treasury Regulations Seciton 1.7704-1(e) and (h) and the Depositor shall take such intent into account in determining whether or not to consent to any proposed transfer of any Certificate.

 

Section 3.04. Mutilated, Destroyed, Lost or Stolen Certificate.  If (a) any mutilated Certificate shall be surrendered to the Certificate Registrar, or if the Certificate Registrar shall receive evidence to its satisfaction of the destruction, loss or theft of any Certificate and (b) there shall be delivered to the Certificate Registrar and the Owner Trustee such security or indemnity as may be required by them to save each of them harmless, then in the absence of notice
that such Certificate shall have been acquired by a bona fide purchaser, the Owner Trustee on behalf of the Trust shall execute and the Owner Trustee, or the Owner Trustee’s authenticating agent, shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate of like tenor and denomination.  In connection with the issuance of any new Certificate under this Section, the Owner Trustee or the Certificate Registrar may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith.  Any duplicate Certificate issued pursuant to this Section shall constitute conclusive evidence of ownership in the Trust, as if originally issued, whether or not the lost, stolen or destroyed Certificate shall be found at any time.

 

Section 3.05. Maintenance of Office or Agency.  The Owner Trustee shall maintain an office or offices or agency or agencies where notices and demands to or upon the Owner Trustee in respect of the Certificate and the Basic Documents may be served.  The Owner Trustee initially designates the Corporate Trust Office, as its principal corporate trust office for such purposes.  The Owner Trustee shall give prompt written notice to the Depositor and to the
Certificateholders of any change in the location of any such office or agency.

 

Section 3.06. Appointment of Paying Agent.  Except during any period when the Indenture Trustee is authorized and directed to do so under the Indenture (i.e. prior to the termination of the Indenture), the Paying Agent shall make distributions to the Certificateholders from the amounts distributable thereto under Section 8.03 of the Indenture pursuant to Section 5.02 and shall report the amounts of such distributions to the Owner Trustee.  Any Paying Agent shall have the
revocable power to withdraw funds from the Collection Account for the purpose of making the distributions referred to above.  The Owner Trustee may revoke such power and remove the Paying Agent if the Owner Trustee determines in its sole discretion that the Paying Agent shall have failed to perform its obligations under this Agreement in any material respect.  The Paying Agent shall initially be Owner Trustee and any co-paying agent chosen by the Owner Trustee and acceptable to the Owner Trustee.  The Paying Agent shall be permitted to resign as Paying Agent upon 30 days’ written notice to the Owner Trustee or, if the Paying Agent is also the Owner Trustee, to the Indenture Trustee.  In the event that the Owner Trustee shall no longer be the Paying Agent, the Owner Trustee shall appoint a successor to act as Paying Agent (which

 

  

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shall be a bank or trust company).  By executing this Agreement, the Owner Trustee hereby agrees in its capacity as Paying Agent to hold all sums, if any, held by it for payment to the Certificateholders in trust for the benefit of the Certificateholders until such sums are paid to the Certificateholders.  The Owner Trustee shall cause such successor Paying Agent or any additional Paying Agent appointed by the Owner Trustee to execute and deliver to the Owner Trustee an instrument in which such successor Paying Agent or additional Paying Agent shall agree with the Owner Trustee that, as Paying Agent, such successor Paying Agent or additional Paying Agent will hold all sums, if any, held by it
for payment to the Certificateholders in trust for the benefit of the Certificateholders until such sums shall be paid to such Certificateholder.  The Paying Agent shall return all unclaimed funds to the Owner Trustee and upon removal of a Paying Agent such Paying Agent shall also return all funds in its possession to the Owner Trustee.  The provisions of Sections 6.04, 7.01, 7.03, 7.04, 7.05, 7.06, 8.01 and 8.02 shall apply to the Owner Trustee also in its role as Paying Agent and Certificate Registrar, for so long as the Owner Trustee shall act as Paying Agent and Certificate Registrar and, to the extent applicable, to any other paying agent or certificate registrar appointed hereunder.  Any reference in this Agreement to the Paying Agent shall include any co-paying agent unless the context requires otherwise.

 

Section 3.07. Persons Deemed Certificateholders.  Prior to due presentation of a Certificate for registration of transfer, the Owner Trustee or the Certificate Registrar may treat the Person in whose name any Certificate shall be registered in the Certificate Register as the owner of such Certificate for the purpose of receiving distributions pursuant to Section 5.02 and for all other purposes whatsoever, and neither the Owner Trustee nor the Certificate Registrar shall be bound by any notice to the
contrary.

 

Section 3.08. Access to List of Certificateholders’ Names and Addresses.  The Certificate Registrar shall furnish or cause to be furnished to the Owner Trustee, the Servicer or the Depositor, as the case may be, within 15 days after its receipt of a request therefor from the Owner Trustee, the Servicer or the Depositor in writing, a list, in such form as the Owner Trustee, the Servicer or the Depositor may reasonably require, of the names and addresses of the
Certificateholders as of the most recent Record Date. If three or more Certificateholders or one or more Holders of Certificates evidencing, in the aggregate, not less than 25% of the Percentage Interest apply in writing to the Owner Trustee, and such application states that the applicants desire to communicate with other Certificateholders with respect to their rights under this Agreement or under the Certificates and such application is accompanied by a copy of the communication that such applicants propose to transmit, then the Owner Trustee shall, within five Business Days after the receipt of such application, afford such applicants access during normal business hours to the current list of Certificateholders. Each Holder, by receiving and holding a Certificate, shall be deemed to have agreed not to hold any of the Depositor, the Servicer, the Certificate Registrar or the Owner
Trustee accountable by reason of the disclosure of its name and address, regardless of the source from which such information was derived.

 

  

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ARTICLE IV

 

ACTIONS BY OWNER TRUSTEE OR THE CERTIFICATEHOLDERS

 

Section 4.01. Prior Notice to the Certificateholders with Respect to Certain Matters.  Subject to the provisions and limitations of Section 4.04, with respect to the following matters, the Owner Trustee shall not take action unless at least 30 days before the taking of such action (or such shorter period as shall be agreed to in writing by all Certificateholders), the Owner Trustee shall have notified the Certificateholders in writing of the proposed action and none of the
Certificateholders shall have notified the Owner Trustee in writing prior to the 30th day (or such agreed upon shorter period) after such notice is given that such Certificateholders have withheld consent or provided alternative direction:

 

(a)   the initiation of any claim or lawsuit by the Trust and the compromise of any action, claim or lawsuit brought by or against the Trust (other than an action brought by the Servicer on behalf of the Titling Trust and Persons having interests in the 20[__]-[__] SUBI Certificate to collect amounts owed under a 20[__]-[__] Lease or in respect of a 20[__]-[__] Vehicle);

 

(b)   the election by the Trust to file an amendment to the Certificate of Trust (unless such amendment is required to be filed under the Statutory Trust Act);

 

(c)   the amendment of the Indenture, whether or not by a Supplemental Indenture, or any other Basic Documents, in circumstances where the consent of any Noteholder is required;

 

(d)   the amendment of the Indenture, whether or not by a Supplemental Indenture, in circumstances where the consent of any Noteholder is not required but such amendment materially adversely affects the interest of the Certificateholders;

 

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

 

(f)   (i) the appointment pursuant to the Indenture of a successor Note Registrar or Paying Agent, (ii) the appointment pursuant to this Agreement of a successor Certificate Registrar or (iii) any consent by the Note Registrar, Paying Agent, Indenture Trustee or Certificate Registrar to the assignment of its respective obligations under the Indenture or this Agreement, as applicable.

 

Section 4.02. Action by the Certificateholders with Respect to Certain Matters.  Subject to the provisions and limitations of Section 4.04, to the extent the Owner Trustee or the Trust is deemed to be the Holder of the 20[__]-[__] SUBI Certificate pursuant to the 20[__]-[__] SUBI Supplement, the Owner Trustee or the Trust, as the case may be, shall take such actions as directed in writing by Certificateholders holding Certificates evidencing
100%1 of the Percentage Interest.  The Owner Trustee shall not have the power, except upon the direction of

 

  

	
  

	
1 Toyota Loan is 100%

 

  

15

  

the Certificateholders, to (a) remove the Administrator pursuant to Section 8 of the Administration Agreement, (b) appoint a successor Administrator pursuant to Section 8 of the Administration Agreement, (c) remove the Servicer in accordance with the terms of the Servicing Agreement or (d) except as expressly provided in the Basic Documents, sell the 20[__]-[__] SUBI Assets after the termination of the Indenture.  The Owner Trustee shall take the actions referred to in the preceding sentence only upon written instructions signed by the authorized representative of 100%2 of the
Certificateholders.

 

Section 4.03. Action with Respect to Bankruptcy.  The Trust shall not, without the prior written consent of the Owner Trustee and 100% of the Certificateholders, (i) institute any proceedings to adjudicate the Trust as bankrupt or insolvent, (ii) consent to the institution of bankruptcy or insolvency proceedings against the Trust, (iii) file a petition seeking or consenting to reorganization or relief under any applicable federal or state law relating to bankruptcy with respect to
the Trust, (iv) consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the Trust or a substantial part of its property (v) make any assignment for the benefit of the Trust's creditors; (vi) cause the Trust to admit in writing its inability to pay its debts generally as they become due; or (vii) take any action in furtherance of any of the foregoing (any of the above foregoing actions, a "Bankruptcy Action").  In considering whether to give or withhold written consent to the Bankruptcy Action by the Trust, the Owner Trustee, with the consent of the Certificateholder, shall consider the interests of the Noteholders in addition to the interests of the Trust and whether the Trust is insolvent.  The Owner Trustee shall have no duty to give such written consent to Bankruptcy Action by the Trust if the Owner
Trustee shall not have been furnished (at the expense of the Person that requested such letter be furnished to the Owner Trustee) a letter from an independent accounting firm of national reputation stating that in the opinion of such firm the Trust is then insolvent.  The Owner Trustee shall not be personally liable to any Noteholder or Certificateholder on account of the Owner Trustee's good faith reliance on the provisions of this Section and no Noteholder or Certificateholder shall have any claim for breach of fiduciary duty or otherwise against the Owner Trustee for withholding or granting its consent to any such Bankruptcy Action.

 

Section 4.04. Restrictions on the Certificateholders’ Power.  The Certificateholders shall not direct the Owner Trustee to take or refrain from taking any action if such action or inaction would be contrary to any obligations of the Trust or of the Owner Trustee under any of the Basic Documents or would be contrary to Section 2.03 or which could result in the Trust being treated as an entity separate from the Depositor, association or publicly traded partnership taxable as a
corporation for U.S. federal income tax purposes, nor shall the Owner Trustee be obligated to follow any such direction, if given.

 

Section 4.05. Majority of the Certificates Control.  Except as otherwise expressly provided herein, any action that may be taken by the Certificateholders under this Agreement may be taken by the Holders of the Certificates evidencing not less than a majority of the Percentage Interest.  Except as expressly provided herein, any written notice of the Certificateholders delivered pursuant to this Agreement shall be effective if signed by Holders of

 

  

	
  

	
2 BMW is 66.66%

 

  

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the Certificates evidencing not less than a majority of the Percentage Interest at the time of the delivery of such notice.

 

ARTICLE V

 

APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

 

Section 5.01. [Reserved].

 

Section 5.02. Application of Amounts in Trust Accounts.

 

(a)   For so long as any Notes are outstanding, on each Payment Date, the Indenture Trustee will distribute to the Certificateholders, on a pro rata basis, based on the Percentage Interests thereof, the amounts distributable thereto pursuant to Section 8.03 of the Indenture.  From and after the date on which the Notes of all Classes have been paid in full, the Paying Agent shall distribute to the Certificateholders (i) amounts released to the Trust pursuant to Sections 4.02 and 8.05(b) of the Indenture and (ii) amounts that are distributable to the Certificateholders in accordance with
the instructions of the Servicer pursuant to Sections 8.03 and 8.07 of the Indenture.

 

(b)   On each Payment Date, the Owner Trustee shall send to the Certificateholders the statement provided to the Owner Trustee by the Servicer pursuant to Section 8.07 of the Indenture with respect to such Payment Date.

 

(c)   In the event that any withholding tax is imposed on the Trust’s distributions (or allocations of income) to a Certificateholder, such tax shall reduce the amount otherwise distributable to the Certificateholders in accordance with this Section.  The Owner Trustee and Paying Agent (and the Indenture Trustee, to the extent the Indenture Trustee is then making distributions to Certificateholders) are hereby authorized and directed to retain from amounts otherwise distributable to the Certificateholders sufficient funds for the payment of any tax that is legally owed by the
Trust (but such authorization shall not prevent the Owner Trustee from contesting any such tax in appropriate proceedings, and withholding payment of such tax, if permitted by law, pending the outcome of such proceedings). The amount of any withholding tax imposed with respect to a Certificateholder shall be treated as cash distributed to such Certificateholder at the time it is withheld by the Trust and remitted to the appropriate taxing authority.  If there is a possibility that withholding tax is payable with respect to any distribution (such as any distribution to a Non-U.S. Person), the Owner Trustee may, in its sole discretion, withhold such amounts in accordance with this paragraph (c).  In the event that a Certificateholder wishes to apply for a refund of any such withholding tax, the Owner Trustee shall reasonably cooperate with such Certificateholder in
making such claim so long as such Certificateholder agrees to reimburse the Owner Trustee for any out-of-pocket expenses incurred in connection therewith.

 

Section 5.03. Method of Payment.  Subject to Section 9.01(c), distributions required to be made to Certificateholders on any Payment Date shall be made to each Certificateholder of record on the related Record Date either by check mailed to such Certificateholder at the address of such holder appearing in the Certificate Register or by wire transfer, in immediately available

 

  

17

  

funds, to the account of any Certificateholder at a bank or other entity having appropriate facilities therefor, if such Certificateholder shall have provided to the Certificate Registrar appropriate written instructions at least five Business Days prior to such Payment Date.

 

Section 5.04. Accounting and Reports.

 

(a)   The Administrator will, based on information provided by the Depositor, (i) maintain (or cause to be maintained) the books of the Trust on a fiscal year basis or a calendar year basis on the accrual method of accounting (except as required by Article XI), and (ii) collect or cause to be collected and paid over to applicable authorities any withholding tax as described in and in accordance with Section 5.02(c) and Article XI with respect to income or distributions to the Certificateholders.  The Administrator will make any elections as so directed by a majority of the
Certificateholders; provided, however, that neither the Administrator nor any Certificateholder shall make any election to have the Trust treated as a corporation for federal, state or local income or franchise tax purposes.

 

(b)   The Depositor shall maintain, or cause to be maintained, such books and records, and shall prepare and file, or cause to be prepared and filed, such reports and returns, as are required pursuant to this Section and Section 11.01.

 

Section 5.05. Signature on Returns; Tax Matter Partner.

 

(a)   The Certificateholder shall sign the tax returns of the Trust on behalf of the Trust; provided, that if there is more than one Certificateholder, the tax returns of the Trust shall be signed by the Certificateholder that is the “tax matters partner” of the Trust under Section 5.05(b).

 

(b)   For any period during which the beneficial interests of the Trust are held by more than one Person, the Certificateholder holding Certificates evidencing the largest portion of the Certificates shall be designated the “tax matters partner” of the Trust pursuant to Section 6231(a)(7)(A) of the Code and applicable Treasury Regulations.

 

ARTICLE VI

 

AUTHORITY AND DUTIES OF OWNER TRUSTEE

 

Section 6.01. General Authority.  The Owner Trustee is authorized and directed to execute and deliver, on behalf of the Trust, the Basic Documents to which the Trust is to be a party and each certificate or other document attached as an exhibit to or contemplated by the Basic Documents to which the Trust is to be a party and any amendment thereto, and, on behalf of the Trust, to direct the Indenture Trustee to authenticate and deliver Class A-1 Notes in the aggregate principal
amount of $[__________], Class A-2 Notes in the aggregate principal amount of $[__________], Class A-3 Notes in the aggregate principal amount of $[__________], Class A-4 Notes in the aggregate principal amount of $[__________] and Class B Notes in the aggregate principal amount of $[__________].  In addition to the foregoing, the Owner Trustee is authorized, but shall not be obligated, to take all actions required of the Trust, pursuant to the Basic Documents, except to the extent this Agreement expressly requires the consent of the Certificateholders for such action.

 

  

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Section 6.02. General Duties.  Subject to the provisions and limitations of Sections 2.03 and 2.06, it shall be the duty of the Owner Trustee to discharge (or cause to be discharged) all of its responsibilities pursuant to the terms of this Agreement and the Basic Documents to which the Trust is a party and to administer the Trust in accordance with the provisions hereof and of the Basic Documents and in the interest of the Certificateholders, subject to the Lien of the Indenture
Trustee. Notwithstanding the foregoing, the Owner Trustee shall be deemed to have discharged its duties and responsibilities hereunder and under the Basic Documents to the extent the Administrator has agreed in the Administration Agreement to perform any act or to discharge any duty of the Owner Trustee hereunder or under any Basic Document, and the Owner Trustee shall not be held liable for the default or failure of the Administrator to carry out such obligations or fulfill such duties under the Administration Agreement.

 

Section 6.03. Duties of Owner Trustee.

 

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

 

(b)   The Owner Trustee shall take such action or refrain from taking such action under this Agreement as it may be directed in writing by the Certificateholders from time to time; provided, however, that the Owner Trustee shall not be required to take or refrain from taking any such action if it shall have determined, or shall have been advised by counsel, that such performance is likely to involve the Owner Trustee in personal liability or is contrary to the terms of this Agreement or of any Basic Document contemplated hereby to which the Trust is a party or is otherwise contrary to
law.  If at any time the Owner Trustee determines that it requires or desires guidance regarding the application of any provision of this Agreement or any other document, then the Owner Trustee may deliver a notice to the Certificateholders requesting written instructions as to the course of action desired by the Certificateholders and such instructions shall constitute full and complete authorization and protection for actions taken by the Owner Trustee in reliance thereon.  If the Owner Trustee does not receive such instructions within five (5) Business Days after it has delivered to the Certificateholders such notice requesting instructions, or such shorter period of time as may be set forth in such notice, it shall refrain from taking any action with respect to the matters described in such notice. Each instruction delivered by the Certificateholders to the Owner
Trustee shall certify to the Owner Trustee that any actions to be taken pursuant to such instruction comply with the terms of this Agreement and the Owner Trustee may rely on such certification and instruction without inquiry except to the extent it has actual knowledge to the contrary.

 

(c)   The Owner Trustee accepts the trusts hereby created and agrees to perform its duties hereunder with respect to such trusts but only upon the terms of this Agreement.

 

(d)   The Owner Trustee, upon receipt of all resolutions, certificates, statements, opinions, reports, documents, orders or other instruments furnished to the Owner Trustee that shall be specifically required to be furnished pursuant to any provision of this Agreement, shall examine them to determine whether they conform on their face to the requirements of this Agreement.

 

  

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(e)   No provision of this Agreement shall be construed to relieve the Owner Trustee from liability for its own grossly negligent action, its own grossly negligent failure to act, its own bad faith or its own willful misfeasance; provided, however, that:

 

(i)      the duties and obligations of the Owner Trustee shall be determined solely by the express provisions of this Agreement, the Owner Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Agreement, no implied covenants or obligations shall be read into this Agreement against the Owner Trustee, the permissive right of the Owner Trustee to do things enumerated in this Agreement and the Basic Documents shall not be construed as a duty and, in the absence of bad faith on the part of the Owner
Trustee, the Owner Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Owner Trustee and conforming on their face to the requirements of this Agreement and the Basic Documents;

 

(ii)   the Owner Trustee shall not be personally liable for an error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Owner Trustee was grossly negligent in performing its duties in accordance with the terms of this Agreement and the Basic Documents;

 

(iii)   the Owner Trustee shall not be personally liable with respect to any action taken, suffered or omitted to be taken in good faith in accordance with the direction of the Holders of the Certificates representing at least a majority of the Percentage Interest (or such larger or smaller percentage of the Percentage Interest as may be required by any other provision of this Agreement or the other Basic Documents); and

 

(iv)   in no event shall the Owner Trustee be personally liable for (x) special consequential or punitive damages, however styled, including, without limitation, lost profits, (y) the acts or omissions of any nominee, correspondent, clearing agency or securities depository through which it holds the Trust’s securities or assets or (z) any losses due to forces beyond the reasonable control of the Owner Trustee, including without limitation, strikes, work stoppages, acts of war or terrorism, insurrection, revolution, nuclear or natural catastrophes or acts of God and
interruptions, loss or malfunctions of utilities, communications or computer (software or hardware) services.

 

(f)   The Owner Trustee shall not be required to expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties under this Agreement, or in the exercise of any of its rights or powers, if there shall be reasonable grounds for believing that the repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.

 

(g)   All information obtained by the Owner Trustee regarding the Obligors and the 20[__]-[__] Contracts, whether upon the exercise of its rights under this Agreement or otherwise, shall be maintained by the Owner Trustee in confidence and shall not be disclosed to any other

 

  

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Person, unless such disclosure is required by any applicable law or regulation or pursuant to subpoena.

 

(h)   Notwithstanding the foregoing, the right of the Depositor or the Certificateholders to take any action affecting the Trust Estate shall be subject to the rights of the Indenture Trustee under the Indenture.

 

Section 6.04. No Duties Except as Specified in this Agreement or in Instructions.  The Owner Trustee shall not be required to perform any of the obligations of the Trust under this Agreement or the other Basic Documents that are required to be performed by (i) the Servicer under the Servicing Agreement or the SUBI Trust Agreement, (ii) the Depositor under this Agreement, the SUBI Certificate Transfer Agreement or the Back-Up Security Agreement, (iii) the
Administrator under this Agreement, the Administration Agreement or the Indenture or (iv) the Indenture Trustee under the Indenture.  The Owner Trustee shall not have any duty or obligation to manage, make any payment with respect to, register, record, sell, dispose of, or otherwise deal with the Trust Estate, or to otherwise take or refrain from taking any action under, or in connection with, any Basic Document to which the Owner Trustee is a party, except as expressly provided by the terms of this Agreement.  No implied duties or obligations shall be read into this Agreement or any Basic Document against the Owner Trustee, it being understood that, to the fullest extent permitted by law, any implied duties (including fiduciary duties) or liabilities otherwise existing at law or in equity with respect to the Trust are hereby eliminated and replaced with the
express duties and obligations set forth in this Agreement.  The Owner Trustee shall have no responsibility for filing any financing or continuation statement in any public office at any time or otherwise to perfect or maintain the perfection of any security interest or lien granted to it hereunder or to perpare or file any Securities and Exchange Commission filing for the Trust or to record this Agreement or any Basic Document.  Notwithstanding anything to the contrary herein or in any Basic Document, the Owner Trustee shall not be required to execute, deliver or certify on behalf of the Trust or any other Person any filings, certificates, affidavits or other instruments required under the Sarbanes-Oxley Act of 2002, to the extent permitted by applicable law.  The Owner Trustee nevertheless agrees that it will, at its own cost and expense, promptly take
all action as may be necessary to discharge any liens on any part of the Trust Estate that result from actions by, or claims against, the Owner Trustee that are not related to the ownership or the administration of the Trust Estate.

 

Section 6.05. No Action Except Under Specified Documents or Instructions.  The Owner Trustee shall not manage, control, use, sell, dispose of or otherwise deal with any part of the Trust Estate except (i) in accordance with the powers granted to and the authority conferred upon the Owner Trustee pursuant to this Agreement, (ii) in accordance with the Basic Documents and (iii) in accordance with any document or instruction delivered to the Owner Trustee pursuant to
Section 6.03.  In particular, the Owner Trustee shall not transfer, sell, pledge, assign or convey the 20[__]-[__] SUBI Certificate except as specifically required or permitted by the Basic Documents.

 

Section 6.06. Restrictions.  The Owner Trustee shall not take any action (a) that is inconsistent with the purposes of the Trust set forth in Section 2.03 or (b) that, to the actual knowledge of a Responsible Officer of the Owner Trustee, (x) would affect the treatment of the Notes as debt for federal income tax purposes, (y) be deemed to cause a taxable exchange of

 

  

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Notes or the Certificates for federal income tax purposes or (z) cause the Trust, the Depositor or the Titling Trust or any portion thereof to be taxable as an association (or publicly traded partnership) taxable as a corporation for federal or state income or franchise tax purposes.  The Certificateholders shall not have the authority to and, by acceptance of a beneficial interest in any Certificate shall thereby be deemed to have covenanted not to, direct the Owner Trustee to take any action that would violate the provisions of this Section.  The Owner Trustee may not initiate or settle any claim or lawsuit involving the Trust (unless brought by the Servicer to collect amounts owed under
a Specified Lease).

 

Section 6.07. Owner Trustee to Provide Information.  The Owner Trustee shall provide prompt notice to Toyota Motor Credit Corporation and Toyota Leasing, Inc. (each, a “TMCC Party,” and together, the “TMCC Parties”) of all demands received by the Owner Trustee for the repurchase or replacement of any 20[__]-[__] Lease and 20[__]-[__] Vehicle for breach of the representations and warranties concerning such 20[__]-[__] Lease or 20[__]-[__]
Vehicle.  If any such demand is made in non-written form, the Owner Trustee shall request that such demand be put into writing; provided, however, the Owner Trustee shall notify the TMCC Parties regardless of whether any such demand is made in writing.  The obligations of the Owner Trustee under the first two sentences of this Section 6.07 to notify the TMCC Parties of any such demand made in non-written form shall not be applicable during such time as the interpretations of the requirements of the Repurchase Rules and Regulations (as defined below) explicitly require reporting by the TMCC Parties solely with respect to demands in written form.  The Owner Trustee shall, upon written request of either TMCC Party, provide notification to the TMCC Parties with respect to any actions taken by the Owner Trustee with respect to any such demand received by the
Owner Trustee in respect of any 20[__]-[__] Lease or 20[__]-[__] Vehicle, such notifications to be provided by the Owner Trustee as soon as practicable and in any event within five Business Days of receipt by the Owner Trustee of such written request from either TMCC Party or such other time frame as may be mutually agreed to by the Owner Trustee and the applicable TMCC Party.  Such notices shall be provided to the TMCC Parties at (i) Toyota Motor Credit Corporation at [19001 South Western Avenue NF10, Torrance, California 90501, Attention: Treasurer], (310) 468-4001, and (ii) Toyota Motor Credit Corporation at 19001 South Western Avenue EF12, Torrance, California 90501, Attention: General Counsel, or at such other address or by such other means of communication as may be specified by Toyota Motor Credit Corporation to the Owner Trustee from time to time, and (ii) Toyota
Leasing, Inc., 19851 South Western Avenue, Torrance, California 90501, Attention: President, (310) 468-7333, or at such other address or by such other means of communication as may be specified by Toyota Leasing, Inc. to the Owner Trustee from time to time. The Owner Trustee and the Trust acknowledge and agree that the purpose of this Section 7.2(b) is to facilitate compliance by the TMCC Parties with Rule 15Ga-1 under the Exchange Act and Items 1104(e) and 1121(c) of Regulation AB (the “Repurchase Rules and Regulations”).  The Owner Trustee acknowledges that interpretations of the requirements of the Repurchase Rules and Regulations may change over time, whether due to interpretive guidance provided by the Commission or its staff, consensus among participants in the asset-backed securities markets, advice of counsel, or otherwise, and agrees to comply with
reasonable written requests made by the TMCC Parties in good faith for delivery of information under these provisions on the basis of evolving interpretations of the Repurchase Rules and Regulations.  The Owner Trustee shall cooperate with reasonable written requests received by it from the TMCC Parties to deliver any and all records and any other information necessary in the good faith determination of the TMCC

 

  

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Parties to permit the TMCC Parties to comply with the provisions of the Repurchase Rules and Regulations.  Subject to its duties explicitly set forth herein and in the other applicable Basic Documents, the Owner Trustee shall not have any responsibility or liability in connection with the compliance of either TMCC Party or a securitizer with the Exchange Act or Regulation AB or any filing required to be made by a TMCC Party or a securitizer under the Exchange Act or Regulation AB.

 

ARTICLE VII

 

CONCERNING THE OWNER TRUSTE [AND THE DELAWARE TRUSTEE]

 

Section 7.01. Rights of the Owner Trustee [and the Delaware Trustee].  Except as otherwise provided in Article VI:

 

(a)   in accordance with Section 7.04, [each of] the Owner Trustee [and the Delaware Trustee] may rely and shall be protected in acting or refraining from acting upon any resolution, Officer's Certificate, certificate of an authorized signatory, certificate of auditors or any other certificate, statement, instrument, opinion, report, notice, request, consent, order, appraisal, bond or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties;

 

(b)   [[the Owner Trustee shall not]/[neither the Owner Trustee nor the Delaware Trustee shall] be liable with respect to any action taken or omitted to be taken by it in accordance with the instructions of the Administrator, as provided in the Administration Agreement or the Certificateholders, as provided herein;

 

(c)   [the Owner Trustee shall not]/[neither the Owner Trustee nor the Delaware Trustee shall] be under any obligation to exercise any of the rights or powers vested in it by this Agreement or the other Basic Documents, or to institute, conduct or defend any litigation under this Agreement, or in relation to this Agreement or the other Basic Documents, at the request, order or direction of any of the Securityholders or any other Person, unless such Person shall have offered to the Owner Trustee [or the Delaware Trustee, as applicable,] reasonable security or indemnity against the costs, expenses
and liabilities that may be incurred therein or thereby;

 

(d)   under no circumstances shall the Owner Trustee [or the Delaware Trustee] be liable for any representation, warranty, covenant or obligation of the Trust, or for any indebtedness evidenced by or arising under any of the Basic Documents, including the principal of and interest on the Notes;

 

(e)   [the Owner Trustee shall not]/[neither the Owner Trustee nor the Delaware Trustee shall] be bound to recalculate, reverify, or make any investigation into the facts of matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond or other paper or document, unless requested in writing to do so by Holders of Certificates representing not less than 25% of the Percentage Interest; provided, however, that if the payment within a reasonable time to the Owner Trustee [or the Delaware Trustee, as applicable,] of the costs,
expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Owner Trustee [or the Delaware

 

  

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Trustee, as applicable,] not reasonably assured to the Owner Trustee [or the Delaware Trustee, respectively,] by the security afforded to it by the terms of this Agreement, the Owner Trustee [or the Delaware Trustee, as applicable,] may require reasonable indemnity against such cost, expense or liability as a condition to so proceeding; the reasonable expense of every such examination shall be paid by the Administrator or, if paid by the Owner Trustee [or the Delaware Trustee, as applicable,] shall be reimbursed by the Administrator upon demand; and nothing in this clause shall derogate from the obligation of the Servicer to observe any applicable law prohibiting disclosure of information regarding the
Obligors; and

 

(f)   [the Owner Trustee shall not]/[neither the Owner Trustee nor the Delaware Trustee shall] be liable for the default or misconduct of the Administrator, the Servicer, the Depositor or the Indenture Trustee under any of the Basic Documents or otherwise, and [the Owner Trustee shall not]/[neither the Owner Trustee nor the Delaware Trustee shall] have any obligation or liability to supervise or perform the obligations of the Trust under the Basic Documents that are required to be performed by the Administrator under the Administration Agreement, the Indenture Trustee under the Indenture or the
Servicer under the Servicing Agreement.

 

Section 7.02. Furnishing of Documents.  The Owner Trustee shall furnish (a) to the Certificateholders promptly upon receipt of a written request therefor, duplicates or copies of all reports, notices, requests, demands, certificates, financial statements and any other instruments furnished to the Owner Trustee under the Basic Documents and (b) to Noteholders promptly upon written request therefor, copies of the Servicing Agreement, the Administration Agreement and the
Trust Agreement.

 

Section 7.03. Representations and Warranties.  (a)  The Owner Trustee hereby represents and warrants to the Depositor and for the benefit of the Certificateholders, that:

 

	
i.  

	
It is a national banking association duly organized and validly existing and in good standing under the laws of the United States.  It has full power, authority and right to execute, deliver and perform its obligations under this Agreement and each other Basic Document.

 

	
ii.  

	
It has taken all corporate action necessary to authorize the execution and delivery of this Agreement and each other Basic Document, and this Agreement and each other Basic Document has been executed and delivered by one of its officers duly authorized to execute and deliver this Agreement and each other Basic Document on its behalf.

 

	
iii.  

	
This Agreement constitutes the legal, valid and binding obligation of the Owner Trustee, enforceable against it in accordance with its terms except as the enforceability thereof may be limited by bankruptcy, insolvency, moratorium, reorganization or other similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity.

 

  

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iv.  

	
It is authorized to exercise trust powers in the State of Delaware as and to the extent contemplated herein and it has a principal place of business in the State of New York.

 

	
v.  

	
Neither the execution nor the delivery by it of this Agreement nor the consummation by the Owner Trustee of the transactions contemplated hereby or thereby nor compliance by it with any of the terms or provisions hereof or thereof will contravene any federal or Delaware law, governmental rule or regulation governing the banking or trust powers of the Owner Trustee or any judgment or order binding on it, or constitute any default under its charter documents or by-laws or any indenture, mortgage, contract, agreement or instrument to which it is a party or by which any of its properties may be bound or result in the creation or imposition of any Lien, charge or encumbrance on the Trust Estate resulting from actions by or claims
against the Owner Trustee individually that are unrelated to this Agreement and each other Basic Document.

 

(b)           [The Delaware Trustee hereby represents and warrants to the Depositor and for the benefit of the Certificateholders, that:

 

	
i.  

	
It is a national banking association duly organized and validly existing and in good standing under the laws of the United States.  It has full power, authority and right to execute, deliver and perform its obligations under this Agreement and each other Basic Document.

 

	
ii.  

	
It has taken all corporate action necessary to authorize the execution and delivery of this Agreement and each other Basic Document, and this Agreement and each other Basic Document has been executed and delivered by one of its officers duly authorized to execute and deliver this Agreement and each other Basic Document on its behalf.

 

	
iii.  

	
This Agreement constitutes the legal, valid and binding obligation of the Delaware Trustee, enforceable against it in accordance with its terms except as the enforceability thereof may be limited by bankruptcy, insolvency, moratorium, reorganization or other similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity.

 

	
iv.  

	
It is authorized to exercise trust powers in the State of Delaware as and to the extent contemplated herein and it has a principal place of business in the State of Delaware.

 

	
v.  

	
Neither the execution nor the delivery by it of this Agreement nor the consummation by the Delaware Trustee of the transactions contemplated hereby or thereby nor compliance by it with any of the terms or provisions hereof or thereof will contravene any federal or Delaware law, governmental rule or regulation governing the banking or trust powers of the Delaware Trustee or any judgment or order binding on it, or constitute any default under

 

  

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its charter documents or by-laws or any indenture, mortgage, contract, agreement or instrument to which it is a party or by which any of its properties may be bound or result in the creation or imposition of any Lien, charge or encumbrance on the Trust Estate resulting from actions by or claims against the Delaware Trustee individually that are unrelated to this Agreement and each other Basic Document.]

 

Section 7.04. Reliance; Advice of Counsel.

 

(a)   [The Owner Trustee shall not]/[Neither the Owner Trustee nor the Delaware Trustee shall] incur liability to anyone in acting upon any signature, instrument, notice, resolution, request, consent, order, certificate, report, opinion, bond, or other document or paper believed by it to be genuine and believed by it to be signed by the proper party or parties. The Owner Trustee [or the Delaware Trustee] may accept a certified copy of a resolution of the board of directors or other governing body of any corporate party as conclusive evidence that such resolution has been duly adopted by such
body and that the same is in full force and effect.  As to any fact or matter the method of the determination of which is not specifically prescribed herein, the Owner Trustee [or the Delaware Trustee, as applicable,] may for all purposes hereof rely on a certificate, signed by the president or any vice president or by the treasurer or other authorized officers or agents of the relevant party, as to such fact or matter and such certificate shall constitute full protection to the Owner Trustee [or the Delaware Trustee, respectively,] for any action taken or omitted to be taken by it in good faith in reliance thereon.

 

(b)   In the exercise or administration of the trusts hereunder and in the performance of its duties and obligations under the Basic Documents, [each of] the Owner Trustee [and the Delaware Trustee] (i) may act directly or through its agents or attorneys pursuant to agreements entered into with any of them, and [the Owner Trustee shall not]/[neither the Owner Trustee nor the Delaware Trustee, as applicable, shall] be liable for the conduct or misconduct of such agents or attorneys if such agents or attorneys shall have been selected by the Owner Trustee [or the Delaware Trustee, as
applicable,] in good faith, and (ii) may consult with counsel, accountants and other skilled persons to be selected in good faith and employed by it.  [The Owner Trustee shall not]/[Neither the Owner Trustee nor the Delaware Trustee shall] be liable for anything done, suffered or omitted in good faith by it in accordance with the written opinion or advice of any such counsel, accountants or other such persons and not contrary to this Agreement or any Basic Document.

 

Section 7.05. Not Acting in Individual Capacity.  In accepting the trusts hereby created, [___________], acts solely as Owner Trustee hereunder and not in its individual capacity.  Except with respect to a claim based on the failure of the Owner Trustee to perform its duties under this Agreement or based on the Owner Trustee's willful misconduct, bad faith or gross negligence, no recourse shall be had for any claim based on any provision of this Agreement, the Notes or
the Certificates, or based on rights obtained through the assignment of any of the foregoing, against the institution serving as the Owner Trustee in its individual capacity.  The Owner Trustee shall not have any personal obligation, liability or duty whatsoever to any Securityholder or any other Person with respect to any such claim, and any such claim shall be asserted solely against the Trust or any indemnitor who shall furnish indemnity as provided in this Indenture.

 

  

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[In accepting the trusts hereby created, [__________] acts solely as Delaware Trustee hereunder and not in its individual capacity.  Except with respect to a claim based on the failure of the Delaware Trustee to perform its duties under this Agreement or based on the Delaware Trustee's willful misconduct, bad faith or gross negligence, no recourse shall be had for any claim based on any provision of this Agreement, the Notes or the Certificates, or based on rights obtained through the assignment of any of the foregoing, against the institution serving as the Delaware Trustee in its individual capacity.  The Delaware Trustee shall not have any personal obligation, liability or duty whatsoever
to any Securityholder or any other Person with respect to any such claim, and any such claim shall be asserted solely against the Trust or any indemnitor who shall furnish indemnity as provided in this Indenture.]

 

Section 7.06. Owner Trustee [and Delaware Trustee] Not Liable for the Certificates.  [The Owner Trustee will not]/[Neither the Owner Trustee nor the Delaware Trustee] make any representations as to the validity or sufficiency of this Agreement or of the Certificates or of the Notes (other than[, in the case of the Owner Trustee,] the execution by the Owner Trustee on behalf of the Trust of, and the certificate of authentication on, the Certificates and its representations and
warranties in Section 7.03).  [The Owner Trustee shall not]/[Neither the Owner Trustee nor the Delaware Trustee shall] have any obligation to perform any of the duties of or to monitor the performance by the Trust, the Servicer, the Indenture Trustee, the Administrator or any other Person.

 

[The Owner Trustee shall not]/[Neither the Owner Trustee nor the Delaware Trustee shall] at any time have any responsibility or liability for or with respect to the legality, validity or enforceability of the Certificates, the Notes, any Basic Documents to which the Owner Trustee [or the Delaware Trustee, as applicable,] is to be a party, or the perfection and priority of any security interest created by or under any Basic Document, or the maintenance of any such perfection or priority, or for or with respect to the efficacy of the Trust or its ability to generate the payments to be distributed to Securityholders under this Agreement and the Indenture or the validity of the transfer of the 20[__]-[__] SUBI
Certificate to the Trust; the compliance by the Trust with any covenant or the breach by the Trust of any warranty or representation made under this Agreement or in any related document and the accuracy of any such warranty or representation prior to the Owner Trustee's [or Delaware Trustee’s, as applicable,] receipt of notice or other discovery of any noncompliance therewith or any breach thereof; the acts or omissions of the Trust or the Servicer; or any action by the Owner Trustee [or the Delaware Trustee, as applicable,] taken at the instruction of the Certificateholders; provided, however, that the foregoing shall not relieve the Owner Trustee [or the Delaware Trustee] of its obligation to perform its respective duties under this Agreement.

 

[The Owner Trustee shall not]/[Neither the Owner Trustee nor the Delaware Trustee shall] be accountable for:  (i) the use or application by the Depositor of the proceeds of the sale of the Notes; (ii) the use or application by the Certificateholders of the Certificates or the proceeds of the Certificates; (iii) the use or application by the holder of any Notes of any of the Notes or of the proceeds of such Notes; or (iv) the use or application of any funds paid to the Servicer in accordance with the Indenture or the Servicing Agreement.

 

Section 7.07. Owner Trustee [and Delaware Trustee] May Own Certificates and Notes.  [The]/[Each of the] Owner Trustee [and the Delaware Trustee,] in its individual or any

 

  

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other capacity (but not in its fiduciary capacity), may become the owner or pledgee of Certificates or Notes and may deal with the Depositor, the Company, the Administrator, the Indenture Trustee and the Servicer in banking or other transactions with the same rights as it would have if it were not Owner Trustee [or Delaware Trustee, respectively].

 

Section 7.08. [Reserved].

 

Section 7.09. [Duties of the Delaware Trustee].   [The Delaware Trustee is appointed to serve as the trustee of the Trust in the State of Delaware for the sole purpose of satisfying the requirement of Section 3807(a) of the Delaware Statutory Trust Act that the Trust have at least one trustee with a principal place of business in Delaware.  It is understood and agreed by the parties hereto that the Delaware
Trustee shall have none of the duties or liabilities of the Owner Trustee or the Indenture Trustee.  The duties of the Delaware Trustee shall be limited to (a) accepting legal process served on the Trust in the State of Delaware and (b) the execution of any certificates required to be filed with the Secretary of State of the State of Delaware which the Delaware Trustee is required to execute under Section 3811 of the Delaware Statutory Trust Act.  To the extent that, at law or in equity, the Delaware Trustee has duties (including fiduciary duties) and liabilities relating thereto to the Trust or the Certificateholders, the beneficial owners thereof or any other person, it is hereby understood and agreed by the other parties hereto that such duties and liabilities are replaced by the duties and liabilities of the Delaware Trustee expressly set forth in this Agreement
and the Statutory Trust Act.  The Delaware Trustee shall have all the rights, privileges and immunities of the Owner Trustee.]

 

ARTICLE VIII

 

COMPENSATION OF OWNER TRUSTEE [AND DELAWARE TRUSTEE]

 

Section 8.01. Owner Trustee’s [and Delaware Trustee’s] Fees and Expenses.  The Trust shall pay or shall cause the Servicer to pay to the Owner Trustee [and the Delaware Trustee] from time to time compensation for its services as have been separately agreed upon before the date hereof, and each of the Owner Trustee [and the Delaware Trustee] shall be entitled to be reimbursed by the Servicer or the Administrator, as the case may be, for its other reasonable expenses
hereunder, including the reasonable compensation, expenses and disbursements of such agents, representatives, experts and counsel as the Owner Trustee [or the Delaware Trustee, respectively,] may employ in connection with the exercise and performance of its rights and its duties hereunder.

 

Section 8.02. Indemnification.  Pursuant to the terms of the Administration Agreement and the following provisions, the Administrator will reimburse each of the Owner Trustee [and the Delaware Trustee] for all reasonable out-of-pocket expenses incurred or made by it, including costs of collection, in addition to the compensation for its services.  Such expenses shall include the reasonable compensation and expenses, disbursements and advances of the Owner Trustee’s
[or Delaware Trustee’s, as applicable,] agents, counsel, accountants and experts directly related to its services hereunder (“Expenses”).  The Administrator will indemnify or will cause the Servicer to indemnify each of the Owner Trustee [and the Delaware Trustee] against

 

  

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any and all loss, liability or expense (including reasonable attorneys’ fees) incurred by it in connection with the administration of the Trust and the performance of its duties hereunder.  Each of the Owner Trustee [and the Delaware Trustee] shall notify the Administrator and the Servicer promptly of any claim for which it may seek indemnity.  Failure by the Owner Trustee [or the Delaware Trustee, as applicable,] to so notify the Administrator and the Servicer shall not relieve the Administrator or the Servicer of its obligations hereunder, except to the extent such failure shall adversely affect the Administrator’s or the Servicer’s defenses in respect thereof.  In
case any such action is brought against the Owner Trustee [or the Delaware Trustee, as applicable,] under this Section 8.02 and it notifies the Administrator of the commencement thereof, the Administrator will assume the defense thereof, with counsel reasonably satisfactory to the Owner Trustee [or Delaware Trustee, respectively,] (who may, unless there is, as evidenced by an opinion of counsel to the Owner Trustee [or the Delaware Trustee, as applicable,] stating that there is an unwaivable conflict of interest, be counsel to the Administrator), and the Administrator will not be liable to the Owner Trustee or the Delaware Trustee under this Section for any legal or other expenses subsequently incurred by the Owner Trustee [or the Delaware Trustee, as applicable,] in connection with the defense thereof, other than reasonable costs of investigation.  Neither the Administrator
nor the Servicer need reimburse any expense or indemnify against any loss, liability or expense incurred by the Owner Trustee through the Owner Trustee’s own willful misconduct, gross negligence or bad faith.  [Neither the Administrator nor the Servicer need reimburse any expense or indemnify against any loss, liability or expense incurred by the Delaware Trustee through the Delaware Trustee’s own willful misconduct, gross negligence or bad faith.]  The provisions of this Section 8.02 shall survive the termination of this Agreement and the resignation or removal of the Owner Trustee [or the Delaware Trustee, as applicable].

 

Section 8.03. Payments to the Owner Trustee [and the Delaware Trustee].  Any amounts paid to the Owner Trustee [or the Delaware Trustee] pursuant to this Article VIII from assets in the Trust Estate shall be deemed not to be a part of the Trust Estate immediately after such payment.

 

ARTICLE IX 

 

TERMINATION OF TRUST AGREEMENT

 

Section 9.01. Termination of Trust Agreement.

 

(a)   The Trust shall dissolve and be wound up in accordance with Section 3808 of the Statutory Trust Act, upon the earliest of (i) the maturity or other liquidation of the last 20[__]-[__] Leases and the related 20[__]-[__] Vehicles (or other asset) in the Trust Estate and the final distribution by the Paying Agent of all moneys or other property or proceeds of the Trust Estate held by it in accordance with the terms of this Agreement, the Indenture and the Servicing Agreement (including, but not limited to, any property and proceeds to be deposited in the Collection Account pursuant to
the terms of the Servicing Agreement or to be released by the Indenture Trustee from the Lien of the Indenture pursuant to the terms of the Indenture) or (ii) the payment or distribution to all Securityholders of all amounts required to be paid to them under the Indenture.  The bankruptcy, liquidation, dissolution, death or incapacity of any Certificateholder shall not (x) operate to terminate this Agreement or the Trust, nor (y) entitle

 

  

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such Certificateholder’s legal representatives or heirs to claim an accounting or to take any action or proceeding in any court for a partition or winding up of all or any part of the Trust Estate, nor (z) otherwise affect the rights, obligations and liabilities of the parties hereto.

 

(b)   Except as provided in Section 9.01(a), the Certificateholder shall not be entitled to revoke or terminate the Trust.

 

(c)   Notice of any dissolution of the Trust, specifying the Payment Date upon which the Certificateholders shall surrender their Certificates to the Paying Agent for payment of the final distributions and cancellation, shall be given by the Owner Trustee to the Certificateholders mailed within five Business Days of receipt of notice of such termination from the Servicer, stating (i) the Payment Date upon or with respect to which final payment of the Certificates shall be made upon presentation and surrender of the Certificates at the office of the Paying Agent therein designated,
(ii) the amount of any such final payment and (iii) that payment to be made on such Payment Date will be made only upon presentation and surrender of the Certificates at the office of the Paying Agent therein specified.  The Owner Trustee shall give such notice to the  Delaware Trustee, the Certificate Registrar (if other than the Owner Trustee) and the Paying Agent (if other than the Owner Trustee) at the time such notice is given to the Certificateholders.  Upon presentation and surrender of the Certificates, the Paying Agent shall cause to be distributed to the Certificateholders amounts distributable on such Payment Date pursuant to Section 5.02.

 

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

 

(d)   Upon the completion of the winding up of the Trust, including the payment or reasonable provision for payment of all claims and obligations in accordance with Section 3808 of the Statutory Trust Act by the Administrator, the Owner Trustee shall, at the direction and expense of the Administrator, file a certificate of cancellation with the Secretary of State in accordance with the provisions of Section 3810 of the Statutory Trust Act.

 

ARTICLE X

 

SUCCESSOR OWNER TRUSTEES [AND DELAWARE TRUSTEES]; ADDITIONAL OWNER TRUSTEES [AND DELAWARE TRUSTEES]

 

Section 10.01. Eligibility Requirements for Owner Trustee [and Delaware Trustee].  The Owner Trustee shall at all times be an entity having a combined capital and surplus of at least $50,000,000, be subject to supervision or examination by federal or state authorities and be

 

  

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authorized to exercise trust powers in the State of Delaware.  If such entity shall publish reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purpose of this Section 10.01, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.  [The Delaware Trustee shall at all times be a person satisfying the provisions of Section 3807(a) of the Statutory Trust Statute.]  In case at any time the Owner Trustee [or the Delaware Trustee, as applicable,] shall cease to be eligible in
accordance with the provisions of this Section, the Owner Trustee [or the Delaware Trustee, as applicable,] shall resign immediately in the manner and with the effect specified in Section 10.02.

 

Section 10.02. Resignation or Removal of Owner Trustee [or Delaware Trustee].  The Owner Trustee [or the Delaware Trustee] may at any time resign and be discharged from the trusts hereby created by giving written notice thereof to the Depositor, the Servicer, each Rating Agency and the Indenture Trustee.  Upon receiving such notice of resignation, the Servicer will promptly appoint a successor Owner Trustee [or Delaware Trustee, as applicable,] by written instrument, in
duplicate, one copy of which shall be delivered to each of the resigning Owner Trustee and the successor Owner Trustee [or the resigning Delaware Trustee and the successor Delaware Trustee, as applicable].  If no successor Owner Trustee [or Delaware Trustee, as applicable,] shall have been so appointed or shall not have accepted such appointment within 30 days after the giving of such notice of resignation, the resigning Owner Trustee [or resigning Delaware Trustee, as applicable,] may petition any court of competent jurisdiction for the appointment of a successor Owner Trustee [or successor Delaware Trustee, as applicable].

 

If at any time the Owner Trustee [or the Delaware Trustee] shall cease to be eligible in accordance with the provisions of Section 10.01 and shall fail to resign promptly, or if at any time the Owner Trustee [or the Delaware Trustee] shall be legally unable to act, or shall be adjudged bankrupt or insolvent, or a receiver of the Owner Trustee [or the Delaware Trustee] or of its respective property shall be appointed, or any public officer shall take charge or control of the Owner Trustee [or the Delaware Trustee] or of its respective property or affairs for the purpose of rehabilitation, conservation or liquidation, then the Administrator may remove the Owner Trustee [or the Delaware Trustee, as applicable,]
by written instrument to such effect delivered to the Owner Trustee, [the Delaware Trustee,] the Depositor and the Indenture Trustee. If the Administrator removes the Owner Trustee [or the Delaware Trustee] under the authority of the immediately preceding sentence, the Servicer will promptly appoint a successor Owner Trustee [or Delaware Trustee, as applicable,] by written instrument in duplicate, one copy of which instrument shall be delivered to each of the outgoing Owner Trustee [or Delaware Trustee, as applicable,] so removed and the successor Owner Trustee [or successor Delaware Trustee, as applicable,] and shall pay or cause to be paid all fees, expenses and other compensation then owed to the outgoing Owner Trustee [or outgoing Delaware Trustee, as applicable].

 

Any resignation or removal of the Owner Trustee [or the Delaware Trustee] and appointment of a successor Owner Trustee [or successor Delaware Trustee, respectively,] pursuant to any of the provisions of this Section shall not become effective until acceptance of appointment by the successor Owner Trustee [or successor Delaware Trustee, respectively,] pursuant to Section 10.03 and payment of all fees and expenses owed to the outgoing Owner Trustee [or the outgoing Delaware Trustee, respectively].  The Administrator will provide notice

 

  

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of such resignation or removal of the Owner Trustee [or the Delaware Trustee] to each of the Rating Agencies.

 

Section 10.03. Successor Owner Trustee [or Delaware Trustee].  Any successor Owner Trustee [or Delaware Trustee, as applicable,] appointed pursuant to Section 10.02 shall execute, acknowledge and deliver to the Administrator and to its predecessor Owner Trustee [or predecessor Delaware Trustee, as applicable,] an instrument accepting such appointment under this Agreement, and thereupon the resignation or removal of the predecessor Owner Trustee [or predecessor Delaware Trustee,
respectively,] shall become effective and such successor Owner Trustee [or Delaware Trustee, as applicable,] without any further act, deed or conveyance, shall become fully vested with all the rights, powers, duties, and obligations of its predecessor under this Agreement, with like effect as if originally named as Owner Trustee [or Delaware Trustee, respectively].  The predecessor Owner Trustee [or Delaware Trustee, as applicable,] shall upon payment of its fees and expenses deliver to the successor Owner Trustee [or Delaware Trustee, respectively,] all documents and statements and monies held by it under this Agreement; and the Administrator and the predecessor Owner Trustee [or Delaware Trustee, as applicable,] shall execute and deliver such instruments and do such other things as may reasonably be required for fully and certainly vesting and confirming in the successor
Owner Trustee [or successor Delaware Trustee, as applicable,] all such rights, powers, duties, and obligations.

 

No successor Owner Trustee shall accept appointment as provided in this Section unless at the time of such acceptance such successor Owner Trustee shall meet the criteria for eligibility set forth in Section 10.01.  [No successor Delaware Trustee shall accept appointment as provided in this Section unless at the time of such acceptance such successor Delaware Trustee shall meet the criteria for eligibility set forth in Section 10.01.]

 

Upon acceptance of appointment by a successor Owner Trustee [or Delaware Trustee, as applicable,] pursuant to this Section, the Administrator will mail notice of the successor of such Owner Trustee [or Delaware Trustee, as applicable,] to the Certificateholders, the Indenture Trustee, the Noteholders and the Rating Agencies.  If the Administrator fails to mail such notice within 10 days after acceptance of appointment by the successor Owner Trustee [or successor Delaware Trustee], the successor Owner Trustee [or successor Delaware Trustee, respectively,] shall cause such notice to be mailed at the expense of the Administrator.

 

Section 10.04. Merger or Consolidation of Owner Trustee [or Delaware Trustee].  Any corporation into which the Owner Trustee [or the Delaware Trustee, as applicable,] may be merged or converted or with which it may be consolidated or any corporation resulting from any merger, conversion or consolidation to which the Owner Trustee [or the Delaware Trustee, as applicable,] shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of
the Owner Trustee [or the Delaware Trustee, as applicable,] shall be the successor of the Owner Trustee [or the Delaware Trustee, respectively,] hereunder, provided such corporation shall be eligible pursuant to Section 10.01, without the execution or filing of any instrument or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding; provided, further, that the Owner Trustee [or the Delaware Trustee, as applicable,] shall mail notice of such merger or consolidation to the Rating Agencies.

 

  

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Section 10.05. Appointment of Co-Trustee or Separate Trustee.  Notwithstanding any other provisions of this Agreement, at any time, for the purpose of meeting any legal requirements of any jurisdiction in which any part of the Trust Estate may at the time be located, the Administrator and the Owner Trustee acting jointly shall have the power and shall execute and deliver all instruments to appoint one or more Persons approved by the Owner Trustee to act as co-trustee, jointly with
the Owner Trustee, or separate trustee or separate trustees, of all or any part of the Trust Estate, and to vest in such Person, in such capacity, such title to the Trust, or any part thereof, and, subject to the other provisions of this Section, such powers, duties, obligations, rights and trusts as the Administrator and the Owner Trustee may consider necessary or desirable.  If the Administrator shall not have joined in such appointment within 25 days after the receipt by it of a request so to do, the Owner Trustee alone shall have the power to make such appointment.  No co-trustee or separate trustee under this Agreement shall be required to meet the terms of eligibility as a trustee pursuant to Section 10.01 and no notice of the appointment of any co-trustee or separate trustee shall be required pursuant to Section 10.03.

 

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

 

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

 

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

 

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

 

Any notice, request or other writing given to the Owner Trustee shall be deemed to have been given to each of the then separate trustees and co-trustees, as if given to each of them.  Each separate trustee and co-trustee, upon its acceptance of the powers and duties conferred thereto under this Agreement, shall be vested with the estates or property specified in its instrument of appointment, either jointly with the Owner Trustee or separately, as may be provided therein, subject to all the provisions of this Agreement, specifically including every provision of this Agreement relating to the conduct of, affecting the liability of, or affording protection to, the Owner Trustee.  Each such
instrument shall be filed with the Owner Trustee and a copy thereof given to the Administrator.

 

  

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Section 10.06. Power of Attorney for Co-Trustee or Separate Trustee.  Any separate trustee or co-trustee may at any time appoint the Owner Trustee as its agent or attorney-in-fact with full power and authority, to the extent not prohibited by law, to do any lawful act under or in respect of this Agreement on its behalf and in its name.  If any separate trustee or co trustee shall die, become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies and
trusts shall vest in and be exercised by the Owner Trustee, to the extent permitted by law, without the appointment of a new or successor trustee.

 

ARTICLE XI

 

TAX MATTERS

 

Section 11.01. Tax and Accounting Characterization.

 

(a)   It is the intent of the parties hereto that the Trust not constitute a separate entity for federal income tax or state income or franchise tax purposes.  It is the intent of the Depositor, the Noteholders and Certificateholders that the Notes be treated as indebtedness secured by the Specified Vehicles and the payments on the Specified Leases for federal income tax and state income and franchise tax purposes.  The Certificates shall be characterized as equity in the Trust and the Trust shall for federal income tax purposes be disregarded as an entity separate from the
beneficial owner of the Certificate for so long as there is only one such beneficial owner. The parties agree that, unless otherwise required by appropriate tax authorities, the Trust shall not file or cause to be filed annual returns, reports or other forms and will treat the Trust in a manner consistent with the characterization that the Trust is not a separate entity for tax purposes.

 

(b)   It is the intent of the parties hereto that the Certificate be treated as a direct ownership interest in the assets of the Trust for purposes of federal income tax and state income and franchise tax purposes.  If, however, the Trust is characterized as a separate entity for federal income tax purposes, it is the intention of the parties that the Trust qualify as a partnership for such purposes and the Depositor, as the holder of the Certificate, will be treated as a partner in such partnership.  The Depositor agrees to take no action inconsistent with the tax
characterization of the Certificate as a direct ownership interest in the assets of the Trust for all tax purposes.

 

Section 11.02. Tax Reporting.  Unless otherwise required by appropriate tax authorities, the Trust shall not file or cause to be filed annual or other income or franchise tax returns and shall not be required to obtain any taxpayer identification number.

 

ARTICLE XII

 

MISCELLANEOUS

 

Section 12.01. Supplements and Amendments.  (a) This Agreement may be amended by the Depositor, [and] the Owner Trustee [and the Delaware Trustee], with prior written notice to the Rating Agencies, and without the consent of any of the Noteholders or the Certificateholders, to cure any ambiguity, to correct or supplement any provisions in this Agreement or for the purpose of adding any provisions to or changing in any manner or

 

  

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eliminating any of the provisions in this Agreement (including any provision herein in connection with permitting transfers of the Certificates) or of modifying in any manner the rights of the Noteholders or the Certificateholders; provided, that either (i) an Officer’s Certificate shall have been delivered by the Servicer to the Owner Trustee and the Indenture Trustee certifying that such officer reasonably believes that such proposed amendment will not materially and adversely affect the interest of any Noteholder or (ii) the Rating Agency Condition has been satisfied in respect of such proposed amendment.

 

(b)   This Agreement may also be amended from time to time by the Depositor, [and] the Owner Trustee [and the Delaware Trustee], with prior written notice to the Rating Agencies, and with the consent of the Indenture Trustee and, if the interests of the Noteholders are materially and adversely affected, with the consent of the Holders of the Notes evidencing at least a majority of the aggregate outstanding principal amount of the Controlling Class of Notes, acting together as a single Class but excluding for purposes of such calculation and action all Securities held or beneficially owned by
TMCC, TLI or any of their Affiliates, for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in any manner the rights of the Noteholders or Certificateholders under this Agreement.  No amendment otherwise permitted under this Section 12.01 may (x) increase or reduce in any manner the amount of, or accelerate or delay the timing of, collections of payments on the 20[__]-[__] Leases or distributions required to be made for the benefit of any Noteholders or Certificateholders without the consent of all Noteholders, Certificateholders and holders of the 20[__]-[__] SUBI Certificate adversely affected thereby, or (y) reduce the percentage of the Notes or Certificates which are required to consent to any such amendment without the consent of the Noteholders and Certficateholders adversely affected
thereby; provided, that any amendment referred to in clause (x) or (y) above shall be deemed to not adversely affect any Noteholder if the Rating Agency Condition has been satisfied in respect of such proposed amendment.  No amendment referred to in clause (x) in the immediately preceding sentence shall be permitted unless (i) an Officer’s Certificate shall have been delivered by the Servicer to the Owner Trustee, [the Delaware Trustee] and the Indenture Trustee certifying that such officer reasonably believes that such proposed amendment will not materially and adversely affect the interest of any Noteholder or Certificateholder whose consent was not obtained and (ii) an Opinion of Counsel shall be furnished to the Owner Trustee, [the Delaware Trustee] and the Indenture Trustee to the effect that such amendment shall not (A) affect the treatment of the Notes as debt for
federal income tax purposes, (B) be deemed to cause a taxable exchange of the Notes for federal income tax purposes or (C) cause the Issuing Entity or Titling Trust to be classified as an association (or a publicly traded partnership) taxable as a corporation for federal income tax purposes.

 

Promptly after the execution of any such amendment or consent, the Owner Trustee shall furnish written notification of the substance of such amendment or consent to the Certificateholder, the Indenture Trustee and the Administrator and the Administrator shall provide such notification to each of the Rating Agencies.

 

It shall not be necessary for the consent of the Certificateholders, the Noteholders or the Indenture Trustee pursuant to this Section to approve the particular form of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof.  The manner of obtaining such consents (and any other consents of Certificateholders

 

  

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provided for in this Agreement or in any other Basic Document) and of evidencing the authorization of the execution thereof by the Certificateholders shall be subject to such reasonable requirements as the Owner Trustee may prescribe.

 

Notwithstanding the foregoing, this Agreement may be amended at any time by the parties hereto to the extent reasonably necessary to assure that none of the Titling Trust, the Trust or the Depositor will be classified as an association (or a publicly traded partnership) taxable as a corporation for federal income tax purposes

 

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

 

(d)   Prior to the execution of any amendment to this Agreement or any amendment to the Certificate of Trust, the Owner Trustee [and the Delaware Trustee] shall be entitled to receive and rely upon an Officer’s Certificate of the Administrator or an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this Agreement.  [The Owner Trustee shall not]/[Neither the Owner Trustee nor the Delaware Trustee shall] be obligated to enter into any such amendment which affects the Owner Trustee’s [or the Delaware Trustee’s, respectively,]
own rights, duties or immunities under this Agreement or otherwise.

 

Section 12.02. No Legal Title to Trust Estate in the Certificateholders.  The Certificateholders shall not have legal title to any part of the Trust Estate.  The Certificateholders shall be entitled to receive distributions with respect to their fractional undivided beneficial interest therein only in accordance with Articles V and IX.  No transfer, by operation of law or otherwise, of any right, title, or interest of the Certificateholders to and in their
ownership interest in the Trust Estate shall operate to terminate this Agreement or the trusts hereunder or entitle any transferee to an accounting or to the transfer to it of legal title to any part of the Trust Estate.

 

Section 12.03. Limitations on Rights of Others.  Except for Section 2.06, the provisions of this Agreement are solely for the benefit of the Owner Trustee, [the Delaware Trustee,] the Depositor, TMCC (as Servicer), the Certificateholders, the Administrator and, to the extent expressly provided herein the Indenture Trustee and the Noteholders, and nothing in this Agreement, (other than Section 2.06), whether express or implied, shall be construed to give to any other Person any
legal or equitable right, remedy or claim in the Trust Estate or under or in respect of this Agreement or any covenants, conditions or provisions contained herein.

 

Section 12.04. Notices.

 

(a)   Unless otherwise expressly specified or permitted by the terms hereof, all notices shall be in writing and shall be deemed given upon receipt by the intended recipient or three Business Days after mailing if mailed by certified mail, postage prepaid (except that notice to the Owner Trustee shall be deemed given only upon actual receipt by the Owner Trustee), if to the Owner Trustee, addressed to the Corporate Trust Office; [if to the Delaware Trustee, to [__________], Attention: [__________];] if to the Depositor, addressed to Toyota Leasing, Inc., 19851 South Western Avenue, Torrance,
California 90501, Attention: President; if, to the Trust,

 

  

36

  

addressed to Toyota Auto Lease Trust 20[__]-[__], c/o [__________], Attention: [__________], with a copy to Toyota Motor Credit Corporation, 19001 South Western Avenue EF 12, Torrance, California 90501, Attention: General Counsel; or, as to each party, at such other address as shall be designated by such party in a written notice to each other party.

 

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

 

Section 12.05. Severability.  If any one or more of the covenants, agreements, provisions or terms of this Agreement shall be for any reason whatsoever held invalid or unenforceable in any jurisdiction, 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 or of the Certificates
or the rights of the Holders thereof.

 

Section 12.06. Counterparts.  This Agreement may be executed simultaneously in any number of counterparts, each of which shall be deemed to be an original, and all of which shall constitute but one and the same instrument.

 

Section 12.07. Successors and Assigns.  All covenants and agreements contained herein shall be binding upon, and inure to the benefit of, each of the Depositor, the Owner Trustee, [the Delaware Trustee] and its respective successors and each Certificateholder and its successors and permitted assigns, all as herein provided.  Any request, notice, direction, consent, waiver or other instrument or action by a Certificateholder shall bind the successors and assigns of such
Certificateholder.

 

Section 12.08. No Petition.  To the fullest extent permitted by law, each of the parties hereto, by entering into this Agreement hereby covenants and agrees, and the Indenture Trustee and each Certificateholder and Noteholder by accepting a Certificate or accepting the benefits of this Agreement, as the case may be, are each deemed to covenant and agree, that it shall not at any time acquiesce, petition or otherwise invoke or cause the Trust or the Depositor to invoke the process
of any court or government authority for the purpose of commencing or sustaining a case against the Titling Trust, any Special Purpose Affiliate that holds a beneficial interest in the Titling Trust or any Affiliate or beneficiary of the Titling Trust, under any federal or state bankruptcy, insolvency or similar law, or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Titling Trust, any Special Purpose Affiliate that holds a beneficial interest in the Titling Trust or any Affiliate or beneficiary of the Titling Trust, as the case may be, or any substantial part of its property, or, except as expressly set forth herein, ordering the winding up or liquidation of the affairs of the the Titling Trust, any Special Purpose Affiliate that holds a beneficial interest in the Titling Trust or any Affiliate or beneficiary of the Titling
Trust, in connection with any obligations relating to the Notes, the Certificates, this Agreement or any of the Basic Documents prior to the date that is one year and one day after the date on which the Indenture is terminated.  This Section 12.08 shall survive the termination of this Agreement.

 

  

37

  

Section 12.09. No Recourse.  Each Certificateholder by accepting an interest in a Certificate acknowledges that such Certificates represent beneficial interests in the Trust only and do not represent interests in or obligations of the Depositor, TMCC (in any capacity), the Administrator, the Owner Trustee, [the Delaware Trustee,] the Indenture Trustee or any Affiliate thereof and no recourse may be had against such parties or their assets, except as may be expressly set forth or
contemplated in the Certificates or the Basic Documents.

 

Section 12.10. Headings.  The headings of the various Articles and Sections herein are for convenience of reference only and shall not define or limit any of the terms or provisions hereof.

 

Section 12.11. Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

Section 12.12. TMCC Payment Obligation.  The parties hereto acknowledge and agree that, pursuant to the Servicing Agreement and the following provisions, the Servicer will be responsible for payment of the Administrator’s fees under the Administration Agreement and will reimburse the Administrator for all expenses and liabilities of the Administrator incurred thereunder.  In addition, the parties hereto acknowledge and agree that, pursuant to the Servicing
Agreement and the following provisions, the Servicer will be responsible for the payment of all fees and expenses of the Trust, the Owner Trustee, [the Delaware Trustee] and the Indenture Trustee paid by any of them in connection with any of their obligations under the Basic Documents to obtain or maintain any license required to be held by the Trust under the laws of any jurisdiction in connection with ownership of the 20[__]-[__] SUBI Certificate.

 

ARTICLE XIII

 

COMPLIANCE WITH REGULATION AB

 

Section 13.01. Intent of the Parties; Reasonableness.  The Depositor and the Owner Trustee acknowledge and agree that the purpose of Article XIII of this Agreement is to facilitate compliance by the Depositor with the provisions of Regulation AB and related rules and regulations of the Commission.  Neither the Depositor nor the Owner Trustee shall exercise its right to request delivery of information or other performance under these provisions other than in good faith,
or for purposes other than compliance with the Securities Act, the Exchange Act and the rules and regulations of the Commission thereunder (or the provision in a private offering of disclosure comparable to that required under the Securities Act).  The Owner Trustee acknowledges that interpretations of the requirements of Regulation AB may change over time, whether due to interpretive guidance provided by the Commission or its staff, consensus among participants in the asset-backed securities markets, advice of counsel, or otherwise, and agrees to comply with requests made by the Depositor in good faith for delivery of information under these provisions on the basis of evolving interpretations of Regulation AB.  In connection therewith, the Owner Trustee shall cooperate fully with the Depositor to deliver to the Depositor (including any of its assignees or
designees), any and all statements, reports, certifications, 

 

 

 

  

38

  

records, attestations, and any other information necessary in the good faith determination of the Depositor, to permit the Depositor to comply with the provisions of Regulation AB, together with such disclosures relating to the Owner Trustee, reasonably believed by the Depositor to be necessary in order to effect such compliance.

  

39

  

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

 

TOYOTA LEASING, INC., as Depositor

By:        ____________________________________

Name:

Title:

[_______________], as Owner Trustee

By:        ____________________________________

Name:

Title:

[_______________], as Delaware Trustee

By:        ____________________________________

Name:

Title:

  

  S-1

  

Acknowledged by:

TOYOTA MOTOR CREDIT CORPORATION,

as Servicer and Administrator

By:        ____________________________________

Name:

Title:

  

2  

  

EXHIBIT A

FORM OF ASSET-BACKED CERTIFICATE

 

THIS CERTIFICATE DOES NOT CONSTITUTE AN OBLIGATION OF OR AN INTEREST IN THE DEPOSITOR, THE OWNER TRUSTEE, [THE DELAWARE TRUSTEE,] THE SERVICER, THE ADMINISTRATOR, TMCC, TLI OR ANY OF THEIR RESPECTIVE AFFILIATES, AND WILL NOT BE INSURED OR GUARANTEED BY ANY SUCH ENTITY OR BY ANY GOVERNMENTAL AGENCY.

 

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR BLUE SKY LAW.  THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE 1933 ACT AND OTHER APPLICABLE LAWS AND ONLY PURSUANT TO RULE 144A UNDER THE 1933 ACT (“RULE 144A”) TO AN INSTITUTIONAL INVESTOR THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A “QIB”), PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A
QIB, IN EACH CASE WHOM THE HOLDER HAS INFORMED THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A SUBJECT TO THE RECEIPT BY THE OWNER TRUSTEE AND THE DEPOSITOR OF A LETTER SUBSTANTIALLY IN THE FORM PROVIDED IN THE TRUST AGREEMENT AND THE RECEIPT BY THE OWNER TRUSTEE AND THE DEPOSITOR OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE OWNER TRUSTEE AND THE DEPOSITOR THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE WITH THE 1933 ACT AND OTHER APPLICABLE LAWS OR IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION.

 

EACH PURCHASER AND TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO REPRESENT, WARRANT AND COVENANT THAT IT IS NOT ACQUIRING THE CERTIFICATE WITH THE ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), WHICH IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, A “PLAN” DESCRIBED IN AND SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF AN EMPLOYEE BENEFIT PLAN’S OR PLAN’S INVESTMENT IN THE ENTITY OR ANY OTHER EMPLOYEE BENEFIT PLAN THAT IS SUBJECT TO A
LAW SIMILAR TO THE FIDUCIARY RESPONSIBILITY OR PROHIBITED TRANSACTION PROVISIONS OF ERISA OR SECTION 4975 OF THE CODE.

 

THIS CERTIFICATE IS NOT TRANSFERABLE UNLESS THE PARTY TRANSFERRING THIS CERTIFICATE (EXCEPTING TRANSFERS BY THE INITIAL

 

  

A-1  

  

PURCHASER) DELIVERS TO THE OWNER TRUSTEE, THE DEPOSITOR, AND TMTT, INC., AS TRUSTEE OF TOYOTA LEASE TRUST (THE “TITLING TRUST”), AN OPINION OF COUNSEL STATING THE CIRCUMSTANCES AND CONDITIONS UPON WHICH THIS CERTIFICATE MAY BE TRANSFERRED AND THAT SUCH TRANSFER AS DESCRIBED THEREIN WILL NOT CAUSE EITHER THE TRUST OR THE TITLING TRUST TO BE CLASSIFIED AS AN ASSOCIATION (OR A PUBLICLY TRADED PARTNERSHIP) TAXABLE AS A CORPORATION FOR FEDERAL INCOME TAX PURPOSES.

 

NUMBER R-1

 

TOYOTA AUTO LEASE TRUST 20[__]-[__]

 

ASSET-BACKED CERTIFICATE

 

THIS CERTIFIES THAT [TOYOTA MOTOR CREDIT CORPORATION/ AFFILIATE OF TOYOTA MOTOR CREDIT CORPORATION] is the registered owner of 100% of the nonassessable, fully-paid, fractional undivided beneficial interest in Toyota Auto Lease Trust 20[__]-[__] (the “Trust”) formed by Toyota Leasing, Inc..

 

The Trust was created pursuant to a Trust Agreement, dated as of [______________] (as amended and supplemented, including the Amended and Restated Trust Agreement dated as of [______________], the “Trust Agreement”), [between]/[among] Toyota Leasing, Inc., as depositor (the “Depositor”), [and] [_________], a [_________], as Owner Trustee (the “Owner Trustee”) [and [_________], a [_________], as Delaware Trustee (the “Delaware Trustee”)], a summary of certain of the pertinent provisions of which is set forth below.  Capitalized terms used herein and not otherwise defined have the meanings ascribed thereto in the Trust Agreement, the amended and restated
trust and servicing agreement, dated as of October 1, 1996 (the “Titling Trust Agreement”), among Toyota Motor Credit Corporation, as servicer (the “Servicer”), TMTT, Inc., as titling trustee, and U.S. Bank National Association, a national banking association (formerly, First Bank National Association), as trust agent, as supplemented by the 20[__]-[__] SUBI Servicing Supplement, dated as of [__________], among the same parties (together with the Titling Trust Agreement, the “Servicing Agreement”), or the Indenture, dated as of [__________] (the “Indenture”), between the Trust and [__________], as indenture trustee (the “Indenture Trustee”), as the case may be.

 

This Certificate is one of the duly authorized Certificates designated as “Asset Backed Certificates” (the “Certificates”) issued pursuant to the Trust Agreement.  Certain debt instruments evidencing obligations of the Trust have been issued under the Indenture, consisting of Notes designated as “[__]% Asset Backed Notes, Class A-1,” “[__]% Asset Backed Notes, Class A-2,” “[__]% Asset Backed Notes, Class A-3,” “[__]% Asset Backed Notes, Class A-4” and “[__]% Asset Backed Notes, Class B” (collectively, the “Notes”).  This Certificate is issued under and is subject to the terms, provisions and
conditions of the Trust Agreement.  The holder of this Certificate, by virtue of its acceptance hereof, assents to and is bound by all of the provisions of the Trust Agreement.

 

  

A-2  

  

The property of the Trust includes the 20[__]-[__] SUBI Certificate (transferred pursuant to the Issuer SUBI Certificate Transfer Agreement), evidencing a 100% beneficial interest in the 20[__]-[__] SUBI Assets, all monies due thereunder and received after the Cutoff Date, security interests in the certain bank accounts and the proceeds thereof, proceeds from claims on certain insurance policies and certain other rights under the Trust Agreement and the Servicing Agreement and all proceeds of the foregoing.

 

It is the intent of the Depositor, TMCC and the Certificateholders that the Certificates be treated as equity of the Trust for purposes of federal income tax or State income and franchise taxes.  If the Trust is characterized as a separate entity for federal income tax purposes, it is the intention of the parties to the Trust Agreement that it qualify as a partnership for such purposes and the Certificateholders will be treated as partners in that partnership.  The Depositor and the other Certificateholders, by acceptance of a Certificate, agree to take no action inconsistent with such tax treatment of the Certificates.

 

Under the Trust Agreement, there will be distributed to the Holder hereof on the [___] day of each month or, if such [___] day is not a Business Day, the next Business Day, (each, a “Payment Date”), commencing in [__________], the amounts to be distributed to Certificateholder on such Payment Date in respect of amounts distributable to the Certificateholder pursuant to Section [____] of the Indenture.

 

The holder of this Certificate acknowledges and agrees that its rights to receive distributions in respect of this Certificate are subordinated to the rights of the Noteholders, as described in the Indenture.

 

Distributions on this Certificate will be made as provided in the Trust Agreement by the Paying Agent by wire transfer or check mailed to the Certificateholder without the presentation or surrender of this Certificate or the making of any notation hereon.  Except as otherwise provided in the Trust Agreement and notwithstanding the above, the final distribution on this Certificate will be made after due notice by the Owner Trustee of the pendency of such distribution and only upon presentation and surrender of this Certificate at the office or agency of the Paying Agent designated in such notice.

 

Each Certificateholder, by its acceptance of a Certificate or any beneficial interest in a Certificate, covenants and agrees that such Certificateholder will not at any time institute against the Titling Trust, any Special Purpose Affiliate that holds a beneficial interest in the Titling Trust or any Affiliate or beneficiary of the Titling Trust, or join in any institution against the Titling Trust, any Special Purpose Affiliate that holds a beneficial interest in the Titling Trust or any Affiliate or beneficiary of the Titling Trust, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States, federal or state bankruptcy or similar law in
connection with any obligations relating to the Certificates, the Notes, the Trust Agreement or any of the Basic Documents.

 

Reference is hereby made to the further provisions of this Certificate set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

 

  

A-3  

  

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

 

THIS CERTIFICATE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

  

A-4  

  

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

 

TOYOTA AUTO LEASE TRUST 20[__]-[__]

	
  

	
By:

	
[____________], not in its individual capacity but solely as Owner Trustee

By:           _________________________________

Authorized Signatory

Dated:  [______________]

  

A-5  

  

OWNER TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is the Certificate referred to in the within-mentioned Trust Agreement.

 

[__________________], not in its individual capacity but solely as Owner Trustee

By:         _________________________________

Authorized Signatory

  

A-6  

  

(REVERSE OF CERTIFICATE)

 

The holder of this Certificate, by accepting an interest in this Certificate, acknowledges that this Certificate represents a beneficial interest in the Trust only and does not represent any interest in or obligation of the Depositor, TMCC (in any capacity), the Administrator, the Owner Trustee, [the Delaware Trustee,] the Indenture Trustee or any Affiliate thereof and no recourse may be had against such parties or their assets, except as may be expressly set forth or contemplated in this Certificate or the Basic Documents.  In addition, this Certificate is not guaranteed by any governmental agency or instrumentality and is limited in right of payment to certain collections and certain other amounts
respecting the assets of the Trust, all as more specifically set forth herein and in the [Indenture].  A copy of each of the [Indenture] and the Trust Agreement may be examined during normal business hours at the principal office of the Depositor, and at such other places, if any, designated by the Depositor, by the Certificateholder upon written request.

 

As provided in the Trust Agreement, and if the Depositor delivers an Opinion of Counsel that the Certificates are transferable in accordance with the terms set forth therein, which opinion the Depositor has not determined can be given under the Internal Revenue Code and existing and proposed regulations thereunder, the transfer of this Certificate is registerable in the Certificate Register upon surrender of this Certificate for registration of transfer at the offices or agencies of the Certificate Registrar maintained by the Owner Trustee, accompanied by a written instrument of transfer in form satisfactory to the Owner Trustee and the Certificate Registrar duly executed by the holder hereof or such
holder’s attorney duly authorized in writing, and thereupon one or more new Certificates of authorized denominations evidencing the same aggregate interest in the Trust will be issued to the designated transferee or transferees. The initial Certificate Registrar appointed under the Trust Agreement is [__________].

 

The Owner Trustee, the Certificate Registrar and any agent of the Owner Trustee or the Certificate Registrar may treat the person in whose name this Certificate is registered as the owner hereof for all purposes and none of the Owner Trustee, the Certificate Registrar or any such agent shall be affected by any notice to the contrary.

 

The Trust Agreement permits, with certain exceptions therein provided, the amendment thereof by the Depositor [, and] the Owner Trustee [and the Delaware Trustee], with prior written notice to the Rating Agencies, without the consent of any of the Noteholders or the Certificateholders, to cure any ambiguity, to correct or supplement any provisions in the Trust Agreement or for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions in the Trust Agreement (including any provision therein in connection with permitting transfers of the Certificates) or of modifying in any manner the rights of the Noteholders or the Certificateholder;
provided, that either (i) an Officer’s Certificate shall have been delivered by the Servicer to the Owner Trustee and the Indenture Trustee certifying that such officer reasonably believes that such proposed amendment will not materially and adversely affect the interest of any Noteholder or (ii) the Rating Agency Condition has been satisfied in respect of such proposed amendment.

 

 

  

A-7  

  

The Trust Agreement may also be amended from time to time by the Depositor, the Owner Trustee and the Delaware Trustee, with prior written notice to the Rating Agencies and with the consent of the Indenture Trustee and with the consent of:

 

(i)   if the interests of the Noteholders are materially and adversely affected, the Holders of Notes evidencing at least a majority of the outstanding principal amount of the Controlling Class of Notes, acting together as a single Class but excluding for purposes of such calculation and action all Securities held or beneficially owned by TMCC, TLI or any of their Affiliates; and

 

(ii)   if the interests of the Certificateholders are materially and adversely affected, the Holders of the Certificates evidencing not less than a majority of the Percentage Interest;

 

for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of the Trust Agreement or of modifying in any manner the rights of the Noteholders or Certificateholders under the Trust Agreement.

 

No amendment otherwise permitted under Section 12.01 of the Trust Agreement may (x) increase or reduce in any manner the amount of, or accelerate or delay the timing of, collections of payments on the 20[__]-[__] Leases or distributions required to be made for the benefit of any Noteholders or Certificateholders without the consent of all Noteholders, Certificateholders and holders of the 20[__]-[__] SUBI Certificate adversely affected thereby, or (y) reduce the percentage of the Notes or Certificates which are required to consent to any such amendment without the consent of the Noteholders and Certficateholders adversely affected thereby; provided, that any
amendment referred to in clause (x) or (y) above shall be deemed to not adversely affect any Noteholder if the Rating Agency Condition has been satisfied in respect of such proposed amendment.  No amendment referred to in clause (x) in the immediately preceding sentence shall be permitted unless (i) an Officer’s Certificate shall have been delivered by the Servicer to the Owner Trustee, [the Delaware Trustee] and the Indenture Trustee certifying that such officer reasonably believes that such proposed amendment will not materially and adversely affect the interest of any Noteholder or Certificateholder whose consent was not obtained and (ii) an Opinion of Counsel shall be furnished to the Owner Trustee, [the Delaware Trustee] and the Indenture Trustee to the effect that such amendment shall not (A) affect the treatment of the Notes as debt for federal income tax
purposes, (B) be deemed to cause a taxable exchange of the Notes for federal income tax purposes or (C) cause the Issuing Entity or Titling Trust to be classified as an association (or a publicly traded partnership) taxable as a corporation for federal income tax purposes.

 

The obligations and responsibilities created by the Trust Agreement and the Trust created thereby shall terminate upon the payment to the Certificateholder of all amounts required to be paid to it pursuant to the Trust Agreement and the Indenture and the disposition of all property held as part of the Trust Estate.  TMCC, as servicer of the 20[__]-[__] Leases and 20[__]-[__] Vehicles under the Servicing Agreement, or any successor servicer, may at its option purchase the Trust Estate at a price specified in the Indenture, and any such purchase of the 20[__]-[__] SUBI Certificate and other property of the Trust will effect early retirement of the Certificate; 

  

A-8  

  

however, such right of purchase is exercisable only after the last day of the Collection Period as of which the Note Balance is less than or equal to 10% of the Initial Note Balance.

 

Any prospective transferee of this Certificate will be required to deliver a letter to the Depositor and the Certificate Registrar substantially in the form of Exhibit C to the Trust Agreement, which letter includes a representation that such prospective transferee is not a Benefit Plan Investor.  This Certificate may not be transferred, sold, pledged or otherwise disposed to or for the account of a Benefit Plan Investor.

 

This Certificate may not be acquired by a Benefit Plan.  By accepting and holding this Certificate, the holder hereof shall be deemed to have represented and warranted that it is not a Benefit Plan and is not acquiring this Certificate or an interest therein for the account of a Benefit Plan.

  

A-9

  

 

ASSIGNMENT

 

Social Security or taxpayer I.D.  or other identifying number of assignee:__________________

 

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

 

_______________________________________________________________________________

            (name and address of assignee)

 

the within Certificate, and all rights thereunder, hereby irrevocably constituting and appointing ______________________, attorney, to transfer said Certificate on the books of the Certificate Registrar, with full power of substitution in the premises.

Dated:_____________*/

 

Signature Guaranteed:

 

__________________*/

 

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

  

A-10  

  

EXHIBIT B

 

FORM OF RULE 144A CERTIFICATE

 

                  Dated:

 

Toyota Auto Lease Trust 20[__]-[__]

c/o [__________],

not in its individual capacity but solely as Owner Trustee

[__________]

[__________]

Attention:  Toyota Auto Lease Trust 20[__]-[__]

 

[________],

as Certificate Registrar

[________]

[________]

Attention:  Toyota Auto Lease Trust 20[__]-[__]

 

Toyota Leasing, Inc.

19851 South Western Avenue

Torrance, California 90501

Attention: President

 

Ladies and Gentlemen:

 

This is to notify you as to the transfer of $____________ initial principal balance of Asset-Backed Certificates (the “Certificates”) of Toyota Auto Lease Trust 20[__]-[__] (the “Trust”).

 

The undersigned is the holder of the Certificates and with this notice hereby deposits with the Owner Trustee $____________ initial principal balance of Certificates and requests that Certificates in the same initial principal balance be issued, executed and authenticated and registered to the purchaser on ____________, as specified in the Trust Agreement, as follows:

 

	
Name:

	
Denominations:

	
Address:

	  
	
Taxpayer I.D. No:

	  

 

The undersigned represents and warrants that the undersigned (a) reasonably believes the purchaser is a “qualified institutional buyer,” as defined in Rule 144A under the Securities Act of 1933, as amended (the “Act”), (b) such purchaser has acquired the Certificates in a transaction effected in accordance with the exemption from the registration requirements of the Act provided by Rule 144A and (c) if the purchaser has purchased the Certificates for one or more accounts

 

  

B-1  

  

for which it is acting as fiduciary or agent, (i) each such account is a qualified institutional buyer and (ii) the purchaser is acquiring Certificates for its own account or for one or more institutional accounts for which it is acting as fiduciary or agent in a minimum amount equivalent to not less than a Percentage Interest of 5.00% for each such account.

 

Very truly yours,

 

___________________________________

 

 

	
  

	
By:

	 	 

	
  

	
Name:

	
  

	
Title:

B-2  

  

  

EXHIBIT C

 

FORM OF RULE 144A LETTER

 

QUALIFIED INSTITUTIONAL BUYER

 

                 Dated:

 

Toyota Auto Lease Trust 20[__]-[__]

c/o [__________],

not in its individual capacity but solely as Owner Trustee

[__________]

[__________]

Attention:  Toyota Auto Lease Trust 20[__]-[__]

 

[________],

as Certificate Registrar

[________]

[________]

Attention:  Toyota Auto Lease Trust 20[__]-[__]

 

Toyota Leasing, Inc.

19851 South Western Avenue

Torrance, California 90501

Attention: President

 

Ladies and Gentlemen:

 

This letter is delivered pursuant to Section 3.03 of the Amended and Restated Trust Agreement, dated as of [______________] (the “Trust Agreement”), among Toyota Leasing, Inc., as Depositor, [and] [________], as Owner Trustee [and [________], as Delaware Trustee], in connection with the transfer by ________________ (the “Seller”) to the undersigned (the “Purchaser”) of the Certificates, a copy of which are attached hereto. Capitalized terms used and not otherwise defined herein have the meanings assigned to such terms in the Trust Agreement.

 

In connection with such transfer, the undersigned hereby represents and warrants to you and the addressees hereof as follows:

 

1.   The Purchaser has relied upon its own tax, legal and financial advisors in connection with its decision to purchase the Certificates.

 

2.   The Purchaser is (A) a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities Act of 1933, as amended (the “1933 Act”)) and has delivered to you a certificate substantially in the form attached hereto as Annex I or Annex 2, as applicable and (B) acquiring the Certificates for its own account or for the account of an investor of the type described in clause (A) above as to each of which the Purchaser exercises sole investment

 

  

C-1  

  

discretion.  The Purchaser is purchasing the Certificates for investment purposes and not with a view to, or for, the offer or sale in connection with, a public distribution or in any other manner that would violate the 1933 Act or the securities or blue sky laws of any state.

 

3.   The Purchaser understands that the Certificates have not been and will not be registered under the 1933 Act or under the securities or blue sky laws of any state, and that (i) if it decides to resell, pledge or otherwise transfer any Certificate, such Certificate may be resold, pledged or transferred without registration only to an entity that has delivered to the Depositor and the Owner Trustee a certification that it is a Qualified Institutional Buyer that purchases (1) for its own account or (2) for the account of such a Qualified Institutional Buyer, that is, in either case, aware that the
resale, pledge or transfer is being made in reliance on said Rule 144A and (ii) it will, and each subsequent holder will be required to, notify any purchaser of any Certificate from it of the resale restrictions referred to in clause (i) above.

 

4.   The Purchaser understands that each of Certificate will bear a legend to the following effect, unless otherwise agreed by the Depositor and the Owner Trustee:

 

“THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR THE SECURITIES LAW OF ANY STATE OF THE UNITED STATES OR BLUE SKY LAW.  THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE 1933 ACT AND OTHER APPLICABLE LAWS AND ONLY PURSUANT TO RULE 144A UNDER THE 1933 ACT (“RULE 144A”) TO AN INSTITUTIONAL INVESTOR THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A “QIB”), PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF
A QIB, IN EACH CASE WHOM THE HOLDER HAS INFORMED THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A SUBJECT TO THE RECEIPT BY THE OWNER TRUSTEE AND THE DEPOSITOR OF A LETTER SUBSTANTIALLY IN THE FORM PROVIDED IN THE TRUST AGREEMENT AND THE RECEIPT BY THE OWNER TRUSTEE AND THE DEPOSITOR OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE OWNER TRUSTEE AND THE DEPOSITOR THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE WITH THE 1933 ACT AND OTHER APPLICABLE LAWS OR IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND ANY OTHER APPLICABLE

 

  

C-2  

  

JURISDICTION. EACH PURCHASER AND TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO REPRESENT, WARRANT AND COVENANT THAT IT IS NOT ACQUIRING THE CERTIFICATE WITH THE ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), WHICH IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, A “PLAN” DESCRIBED IN AND SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF AN EMPLOYEE BENEFIT PLAN’S OR PLAN’S INVESTMENT IN THE ENTITY OR ANY OTHER EMPLOYEE BENEFIT PLAN THAT IS
SUBJECT TO A LAW SIMILAR TO THE FIDUCIARY RESPONSIBILITY OR PROHIBITED TRANSACTION PROVISIONS OF ERISA OR SECTION 4975 OF THE CODE.  BY ACCEPTANCE OF THIS CERTIFICATE OR AN INTEREST THEREIN, THE HOLDER HEREOF SHALL BE DEEMED TO REPRESENT AND WARRANT THAT ITS ACQUISITION AND HOLDING IS IN COMPLIANCE WITH THE FOREGOING RESTRICTION ON BENEFIT PLAN ASSETS. THIS CERTIFICATE IS NOT TRANSFERABLE UNLESS THE PARTY TRANSFERRING THIS CERTIFICATE (EXCEPTING TRANSFERS BY THE INITIAL PURCHASER) DELIVERS TO THE OWNER TRUSTEE, THE DEPOSITOR, TMTT, INC., AS TRUSTEE OF TOYOTA LEASE TRUST (THE “TITLING TRUST”), AN OPINION OF COUNSEL STATING THE CIRCUMSTANCES AND CONDITIONS UPON WHICH THIS CERTIFICATE MAY BE TRANSFERRED AND THAT SUCH TRANSFER AS DESCRIBED THEREIN WILL NOT CAUSE EITHER THE TRUST OR THE TITLING TRUST TO BE CLASSIFIED AS AN ASSOCIATION (OR A PUBLICLY TRADED PARTNERSHIP)
TAXABLE AS A CORPORATION FOR FEDERAL INCOME TAX PURPOSES.

 

5.   The Purchaser will be the beneficial owner of the Certificate and either (A) is not, and will not become, a partnership, Subchapter S corporation or grantor trust for U.S. federal income tax purposes or (B) is such an entity, but none of the direct or indirect beneficial owners of any of the interests in such transferee have allowed or caused, or will allow or cause, 50% or more (or such other percentage as the Depositor may establish prior to the time of such proposed transfer) of the value of such interests to be attributable to such transferee’s ownership of Certificates.

 

6.   The Purchaser understands that no subsequent transfer of the Certificates is permitted unless (A) such transfer is of a Certificate with a denomination of at least a Percentage

 

  

C-3  

  

Interest of 5.00%, (B) it causes its proposed transferee to provide to the Depositor and the Certificate Registrar a letter substantially in the form of Exhibit C to the Trust Agreement, as applicable, or such other written statement as the Depositor shall prescribe and (C) the Depositor consents in writing to the proposed transfer, which consent shall be granted unless the Depositor determines that such transfer would create a risk that the Trust or the Titling Trust would be classified for federal or any applicable state tax purposes as an association (or a publicly traded partnership) taxable as a corporation; provided, however, that any attempted transfer that would either cause the number of holders of
direct or indirect interests in the Titling Trust to exceed 50, shall be a void transfer.

 

7.   The Purchaser understands that the opinion of counsel to the Trust that the Trust is not a publicly traded partnership taxable as a corporation is dependent in part on the accuracy of the representations in paragraphs 8 and 9 above.

 

8.   The Purchaser is a Person who is either (A)(1) a citizen or resident of the United States or (2) a corporation or partnership (including any entity treated as a corporation or partnership for U.S. income tax purposes) organized in or under the laws of the United States, any state or the District of Columbia or (B) an estate the income of which is includible in gross income for federal income tax purposes regardless of source or a trust if the court within the United States is able to exercise primary supervision of the administration of the trust and one or more United States persons have the
authority to control all substantial decisions of the trust.  It agrees that it will provide a certification of non-foreign status signed under penalty of perjury (and such other certifications, representations or Opinions of Counsel as may be requested by the Depositor, the Owner Trustee and the Certificate Registrar).

 

9.   The Purchaser agrees that if at some time in the future it wishes to transfer or exchange any of the Certificates, it will not transfer or exchange any of the Certificates unless such transfer or exchange is in accordance with Section 3.03 of the Trust Agreement.  The Purchaser understands that any purported transfer of the Certificates (or any interest therein) in contravention of any of the restrictions and conditions in the Trust Agreement, as applicable, shall be a void, and the purported transferee in such transfer shall not be recognized by the Trust or any other Person as a Certificateholder,
as the case may, be for any purpose.

 

10.   The Purchaser hereby irrevocably requests you to arrange for definitive Certificates representing the Certificates purchased by the Purchaser to be registered and delivered promptly after the Closing Date as follows:

 

	
Principal Amount

of Definitive Certificate:

	 	
Registered in

Name of:

	 	
Deliver Definitive

Certificate to:

	  	 	  	 	  
	  	 	  	 	  
	  	 	  	 	  

  

C-4  

  

You and the Owner Trustee are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceeding or official inquiry with respect to the matters covered hereby.

 

Very truly yours,

By:       __________________________­­­­­­­­­­­­­­­­­­

Name:

Title:

[Medallion Stamp to be affixed here]

  

C-5  

  

ANNEX 1 TO EXHIBIT C

 

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

 

[For Transferees Other Than Registered Investment Companies]

 

The undersigned (the “Purchaser”) hereby certifies as follows to the addressees of the Rule 144A Representation Letter to which this certification is attached with respect to the Certificate described therein:

 

(iii)   As indicated below, the undersigned is the President, Chief Financial Officer, Senior Vice President or other executive officer of the Purchaser.

 

(iv)   In connection with purchases by the Purchaser, the Purchaser is a “qualified institutional buyer” as that term is defined in Rule 144A (“Rule 144A”) under the Securities Act of 1933, as amended, because (i) the Purchaser owned and/or invested on a discretionary basis $__________1 in securities (except for the excluded securities referred to below) as of the end of the Purchaser’s most recent fiscal year (such amount being calculated in accordance with Rule 144A) and
(ii) the Purchaser satisfies the criteria in the category marked below.

 

	
  

	
___

	
Corporation, etc.  The Purchaser is a corporation (other than a bank, savings and loan association or similar institution), Massachusetts or similar statutory trust, partnership, or charitable organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended.

 

	
  

	
___

	
Bank.  The Purchaser (a) is a national bank or banking institution organized under the laws of any state, territory or the District of Columbia, the business of which is substantially confined to banking and is supervised by the state or territorial banking commission or similar official or is a foreign bank or equivalent institution, and (b) has an audited net worth of at least $25,000,000 as demonstrated in its latest annual financial statements, a copy of which is attached hereto.

 

	
  

	
___

	
Savings and Loan.  The Purchaser (a) is a savings and loan association, building and loan association, cooperative bank, homestead association or similar institution, which is supervised and examined by a state or federal authority having supervision over any such institutions or is a foreign savings and loan association or equivalent institution and (b) has an audited net worth of at least $25,000,000 as demonstrated in its latest annual financial statements, a copy of which is attached hereto.

 

  

	
1

	
Purchaser must own and/or invest on a discretionary basis at least $100,000,000 in securities unless Purchaser is a dealer, and, in that case, Purchaser must own and/or invest on a discretionary basis at least $10,000,000 in securities.

 

  

C-6  

  

	
  

	
___

	
Broker-dealer.  The Purchaser is a dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

 

	
  

	
___

	
Insurance Company.  The Purchaser is an insurance company whose primary and predominant business activity is the writing of insurance or the reinsuring of risks underwritten by insurance companies and which is subject to supervision by the insurance commissioner or a similar official or agency of a state, territory or the District of Columbia.

 

	
  

	
___

	
State or Local Plan.  The Purchaser is a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of the state or its political subdivisions, for the benefit of its employees.

 

	
  

	
___

	
ERISA Plan.  The Purchaser is an employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974.

 

	
  

	
___

	
Investment Advisor.  The Purchaser is an investment advisor registered under the Investment Advisors Act of 1940.

 

	
  

	
___

	
Small Business Investment Company.  The Purchaser is a small business investment company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958.

 

	
  

	
___

	
Business Development Company.  The Purchaser is a business development company as defined in Section 202(a)(22) of the Investment Advisors Act of 1940.

 

	
  

	
___

	
Trust Fund.  The Purchaser is a trust fund whose trustee is a bank or trust company and whose participants are exclusively state or local Plans or ERISA Plans as defined above, and no participant of the Purchaser is an individual retirement account or an H.R. 10 (Keogh) plan.

 

(v)   The term “securities” as used herein does not include (i) securities of issuers that are affiliated with the Purchaser, (ii) securities that are part of an unsold allotment to or subscription by the Purchaser, if the Purchaser is a dealer, (iii) bank deposit notes and certificates of deposit, (iv) loan participations, (v) repurchase agreements, (vi) securities owned but subject to a repurchase agreement and (vii) currency, interest rate and commodity swaps.

 

(vi)   For purposes of determining the aggregate amount of securities owned and/or invested on a discretionary basis by the Purchaser, the Purchaser used the cost of such securities to the Purchaser and did not include any of the securities referred to in the preceding paragraph, except (i) where the Purchaser reports its securities holdings in its financial statements on the basis of their market value, and (ii) no current information with respect to the cost of those securities has been published.  If clause (ii) in the preceding sentence applies, the securities may be valued at their market
value.  Further,

 

  

C-7  

  

in determining such aggregate amount, the Purchaser may have included securities owned by subsidiaries of the Purchaser, but only if such subsidiaries are consolidated with the Purchaser in its financial statements prepared in accordance with generally accepted accounting principles and if the investments of such subsidiaries are managed under the Purchaser’s direction.  However, such securities were not included if the Purchaser is a majority-owned, consolidated subsidiary of another enterprise and the Purchaser is not itself a reporting company under the Exchange Act.

 

(vii)   The Purchaser acknowledges that it is familiar with Rule 144A and understands that the seller to it and other parties related to the Certificates are relying and will continue to rely on the statements made herein because one or more sales to the Purchaser may be in reliance on Rule 144A.

 

(viii)   Until the date of purchase of the Certificates, the Purchaser will notify each of the parties to which this certification is made of any changes in the information and conclusions herein.  Until such notice is given, the Purchaser’s purchase of the Certificates will constitute a reaffirmation of this certification as of the date of such purchase.  In addition, if the Purchaser is a bank or savings and loan is provided above, the Purchaser agrees that it will furnish to such parties updated annual financial statements promptly after they become available.

 

 

________________________________

Name of Purchaser

 

 

	
By:

	 	 

	
  

	
Name:

	
  

	
Title:

 

Dated:___________________________                                                      

 

  

C-8  

  

ANNEX 2 TO EXHIBIT C

 

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

 

[For Transferees That are Registered Investment Companies]

 

The undersigned (the “Purchaser”) hereby certifies as follows to the addressees of the Rule 144A Representation Letter to which this certification is attached with respect to the Certificate described therein:

 

(i)   As indicated below, the undersigned is the President, Chief Financial Officer or Senior Vice President of the Purchaser or, if the Purchaser is a “qualified institutional buyer” as that term is defined in Rule 144A (“Rule 144A”) under the Securities Act of 1933, as amended, because the Purchaser is part of a Family of Investment Companies (as defined below), is such an officer of the Adviser.

 

(ii)   In connection with purchases by the Purchaser, the Purchaser is a “qualified institutional buyer” as defined in Rule 144A because (i) the Purchaser is an investment company registered under the Investment Company Act of 1940, as amended, and (ii) as marked below, the Purchaser alone, or the Purchaser’s Family of Investment Companies, owned at least $100,000,000 in securities (other than the excluded securities referred to below) as of the end of the Purchaser’s most recent fiscal year.  For purposes of determining the amount of securities owned by the Purchaser or
the Purchaser’s Family of Investment Companies, the cost of such securities was used, except (i) where the Purchaser or the Purchaser’s Family of Investment Companies reports its securities holdings in its financial statements on the basis of their market value, and (ii) no current information with respect to the cost of those securities has been published.  If clause (ii) in the preceding sentence applies, the securities may be valued at market.

 

	
  

	
___

	
The Purchaser owned $__________ in securities (other than the excluded securities referred to below) as of the end of the Purchaser’s most recent fiscal year (such amount being calculated in accordance with Rule 144A).

 

	
  

	
___

	
The Purchaser is part of a Family of Investment Companies which owned in the aggregate $__________ in securities (other than the excluded securities referred to below) as of the end of the Purchaser’s most recent fiscal year (such amount being calculated in accordance with Rule 144A).

 

(iii)   The term “Family of Investment Companies” as used herein means two or more registered investment companies (or series thereof) that have the same investment adviser or investment advisers that are affiliated (by virtue of being majority owned subsidiaries of the same parent or because one investment adviser is a majority owned subsidiary of the other).

 

(iv)   The term “securities” as used herein does not include (i) securities of issuers that are affiliated with the Purchaser or are part of the Purchaser’s Family of Investment Companies, (ii) bank deposit notes and certificates of deposit, (iii) loan

 

  

C-9  

  

participations, (iv) repurchase agreements, (v) securities owned but subject to a repurchase agreement and (vi) currency, interest rate and commodity swaps.

 

(v)   The Purchaser is familiar with Rule 144A and understands that the parties listed in the Rule 144A Letter to which this certification relates are relying and will continue to rely on the statements made herein because one or more sales to the Purchaser will be in reliance on Rule 144A.  In addition, the Purchaser will only purchase for the Purchaser’s own account.

 

(vi)   Until the date of purchase of the Certificate, the undersigned will notify the parties listed in the Rule 144A Certificate to which this certification relates of any changes in the information and conclusions herein.  Until such notice is given, the Purchaser’s purchase of the Certificates will constitute a reaffirmation of this certification by the undersigned as of the date of such purchase.

 

________________________________

Name of Purchaser or Advisor

 

	
By:

	 	 

	
  

	
Name:

	
  

	
Title:

 

IF AN ADVISOR:

 

 

________________________________

Name of Purchaser or Advisor

 

Dated:______________________                                           

 

  

C-10  

  

 

EXHIBIT D

 

FORM OF INVESTMENT LETTER

 

_______________, ___

 

	
Seller

 

	 _______________________
	 _______________________ 
	 _______________________

Toyota Auto Lease Trust 20[__]-[__]

c/o [__________],

not in its individual capacity but solely as Owner Trustee

[__________]

[__________]

Attention:  Toyota Auto Lease Trust 20[__]-[__]

[________],

as Certificate Registrar

[________]

[________]

Attention:  Toyota Auto Lease Trust 20[__]-[__]

 

Toyota Leasing, Inc.

19851 South Western Avenue

Torrance, California 90501

Attention: President

 

	
  

	
Re:

	
Toyota Auto Lease Trust 20[__]-[__]

	
  

	
Asset-Backed Certificates                       

 

Dear Sirs:

 

In connection with our acquisition of the above-referenced Asset-Backed Certificates (the “Certificates”) we certify that (a) we understand that the Certificates are not being registered under the Securities Act of 1933, as amended (the “Act”), or any state securities laws and are being transferred to us in a transaction that is exempt from the registration requirements of the Act and any such laws, (b) we are an “accredited investor,” as defined in Regulation D under the Act, and have such knowledge and experience in financial and business matters that we are capable of evaluating the merits and risks of investments in the Certificates, (c) we have had the opportunity to ask
questions of and receive answers from the Seller concerning the purchase of the Certificates and all matters relating thereto or any additional information deemed necessary to our decision to purchase the Certificates, (d) we are acquiring the Certificates for investment

 

  

D-1  

  

for our own account and not with a view to any distribution of such Certificates (but without prejudice to our right at all times to sell or otherwise dispose of the Certificates in accordance with clause (g) below), (e) we have not offered or sold any Certificates to, or solicited offers to buy any Certificates from, any person, or otherwise approached or negotiated with any person with respect thereto, or taken any other action that would result in a violation of Section 5 of the Act or any state securities laws, (f) we are not a Benefit Plan Investor and (g) we will not sell, or otherwise dispose of any Certificates unless (i) such sale, transfer or other disposition is made pursuant to an effective
registration statement under the Act and in compliance with any state securities laws or is exempt from such registration requirements and, if requested, we will at our expense provide an Opinion of Counsel satisfactory to the addressees of this certificate that such sale, transfer or other disposition may be made pursuant to an exemption from the Act, (ii) the purchaser or transferee of such Certificate has executed and delivered to you a certificate to substantially the same effect as this certificate and (iii) the purchaser or transferee has otherwise complied with any conditions for transfer set forth in the Amended and Restated Trust Agreement, dated as of [______________] (the “Trust Agreement”), among Toyota Leasing, Inc., as Depositor, [and] [________], as Owner Trustee [and [________], as Delaware Trustee].

 

Very truly yours,

 

[NAME OF TRANSFEROR]

 

 

 

By_____________________________________

    Authorized Officer

 

 

 

 

D-2

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